Following postponement of the 2020 Tokyo Summer Olympics to 2021, new data from Media Partners Asia suggests sports-related media revenue in the region (China, India, Australia and Japan) this year could fall 35% ($2 billion) due to ongoing disruptions caused by the global coronavirus pandemic.
Prior to the pandemic, MPA projected $5.7 billion sports-related media revenue generation in 11 key markets in the region for 2020, coupled with $6 billion rights investment by broadcasters and over-the-top video platforms covering the Olympics, professional basketball, soccer, motorsport, tennis, golf and rugby, among others.
The data update assumes truncated IPL, AFL, NRL, Nippon Professional Baseball seasons, among others. The ICC T20 Cricket World Cup is expected to be held to completion in Australia in the fourth quarter.
MPA contends upwards of 40% of the fiscal loss will be recovered in summer 2021 when the Tokyo Olympics and the Euro 2020 soccer competition are expected to be held. In some instances, the growth of SVOD sports-based platforms (DAZN, fuboTV, etc.) with an ability to subscribe month-to-month, could prove key for a rebound in the Asian sports ecosystem.
That’s quite a change from earlier this month when MPA said the market for premium sports remains relatively healthy in Asia Pacific, in spite of uneven structural dynamics and the corrosive impact of piracy.
“Sports rights investments in China, India, Australia and Japan are driven by a strong domestic sports ecosystem, supported by premium international rights for football, basketball and baseball,” analyst Srivathsan A R wrote on March 5.