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The balance of power and influence in world cricket

Junaids

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We all know that for many years cricket was effectively ruled by England's MCC, and that subsequently economic power has shifted towards India.

Perhaps now is a timely moment to compare the clout of the major cricketing markets.

Let's look at each country's GDP (wealth), and wealth per capita, population, ranked by GDP.

1. UK $3,124,650 million, 68 million people, $46,344 per person.
2. India $3,049,704 million, 1,353 million people, $2,191 per person
3. Australia $1,617, 543 million, 25 million people, $62,723 per person
4. Bangladesh $409,584 million, 161 million people, $2,544 per person
5. South Africa $329,529 million, 60 million people, $5,444 per person
6. Pakistan $286,340 million, 221 million people, $1,260 per person
7. New Zealand $243,332 million, 5 million people, $47,499 per person
8. West Indies (Caricom) $145,300 billion, 18 million people, $12,608 per person
9. Sri Lanka $$84,352 million, 22 million people, $3,830 per person

Obviously the source of power is neither total national wealth, nor wealth per person.

India has less money than the UK and less money per person. Its middle-classes do not pay an extra subscription fee of $45 per month for cricket channels like in the UK, or $50 per month in Australia.

In fact, when you look a the relative poverty of the Indian market it quickly becomes obvious that the financial value of cricket lies squarely in the form of advertising, and indeed that if cricket was restricted to subscription channels (like in the wealthy markets of England, Australia, New Zealand and, for want of a less-offensive expression, white South Africa) it would actually ruin the advertising revenue.

So we effectively have a neat divide, which mirrors the per capita GDP:

Group A - Poor countries where advertising pays for TV rights acquisitions
India $2,191
Bangladesh $2,544
Pakistan $1,260
Sri Lanka $3,830


Group B - Affluent countries where subscriptions pay for TV rights acquisitions

England $46,340
Australia $62,723
New Zealand $47,499
West Indies $12,608
South Africa (mainly white demographics) approx $25,000 for SuperSport subscribers

Even that, however, does not fully explain the outsized influence of India.

There must clearly be another influence here - what other sports people watch. In the UK, cricket's popularity is far behind football and in New Zealand and white South African demographics it is far behind rugby (and even rugby league in NZ's largest market of Auckland.)

All of this raises a couple of important questions:

1. Why do Bangladesh and Pakistan in combination not exercise far more financial power than they do?

2. As India's middle-class grows in wealth, will a transition to subscription-based cricket on TV actually weaken the economic stranglehold that India has on the game?

Currently in the UK there are 3 million subscribers paying $45 per month for access to Sky Sports. It's difficult to imagine India reaching a point where there is more revenue available from selling something like 40 million monthly subscriptions at $10 per month instead of relying upon advertising revenue.

Overall, the balance of power looks as if it will depend upon the future acceleration in the size and wealth of India's middle-classes. If and when they are viewed as a mature market for subscription TV services, it seems reasonable to assume that - as has already happened with England and Australia - the transition to a subscription model will actually enrich the TV stations but sacrifice the cricket board's level of power.
 
ive explained this in another thread..

1. lack of corporatisation in pakistan, relative to its population corporations are relatively small, therefore so are marketing and branding budgets.

2. no, it will only get stronger. a subscription based model will only be allowed to replace the current mass advertisement model if it is more lucrative. u can fault the bcci on many things, but value extraction from its products is not one of them.

long term there is no reversing indias economic influence, the only hope for pakistan is to eventually reach a point where it has enough economic stability to out compete the rest of the other leagues and create come sort of champions league type tournament with the IPL when political relations permit.

at the moment pcb sole focus should be on developing value of PSL.
 
% of the population into cricket X purchasing power of that population [ Not perfect but it will do ]

Will have influence.


Some tiny towns can have 1M per capita income, but if it's tiny then that's the limitation. The total addressable market is very tiny. Taking 1M figure and comparing it with another market with only 50K per capita income won't tell you anything useful unless you normalize it for the total population interested in cricket. Subscription has very little to do with this.
 
Group A - Poor countries where advertising pays for TV rights acquisitions
India $2,191
Bangladesh $2,544
Pakistan $1,260
Sri Lanka $3,830

==

Why then does this divide not reflect in real life (in Cricketing terms)? Why does BCCI have so much clout?
 
The whole subscription model seems like a UK/Australian thing, in America you just pay for basic cable and it has all the channels you want and you can tune into NFL, NBA, MLB etc whenever you want, although apps like Sling and Hulu sports are replacing cable but it's not the same as what's happening in the UK/Aus, perhaps India will take a more American approach. PPV is usually for niche sports like UFC and WWE and boxing matches.
 
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Group A - Poor countries where advertising pays for TV rights acquisitions
India $2,191
Bangladesh $2,544
Pakistan $1,260
Sri Lanka $3,830

==

Why then does this divide not reflect in real life (in Cricketing terms)? Why does BCCI have so much clout?

Because India probably has more population than all the test playing nations combined. India brings more eyes to a cricket event.

More eyes = Bigger market = More advertisement = Bigger revenue.
 
Pretty sure india has a subscription model too with disney hotstar.
It has atleast a minimum of 15 million subscribers ( maybe more, im not sure at all)

No idea why OP is bringing unrelated baseline data like gdp per capita etc.
along with other adjectives like mature markets etc.
because one man can only buy 1 subscription
And this monthly subscription cannot cost more than a few hrs pay.
 
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