Zee’s move to acquire TV rights for ICC events (2024-27) for $1.4-1.5 bn supports an emerging view that (1) sports broadcasting is less vulnerable to OTT disruption, (2) portfolio approach (entertainment + sports) is critical to safeguard core TV business. Sports broadcasting is generally not profitable and this is unlikely to change in view of steep content inflation and TV-to-OTT shift. So, we do not fully appreciate/understand Zee’s decision to step up investments in sports TV rights (we would have preferred higher investments in OTT). Separately, CCI has raised some queries that could potentially delay Sony-Zee merger. Zee acquires exclusive …
