JioHotstar offers to give up ICC media rights, cites losses of over ₹25,000 crore

Mumbai (The Uttam Hindu): JioHotstar has told the ICC that it is unable to continue its media rights deal because the company is facing major financial losses. With two years still remaining in the four-year agreement, the broadcaster has said that the current economic situation does not allow it to sustain the contract. Since India generates about 80% of ICC’s revenue, this move has created significant concern in global cricket management.

Following JioHotstar’s indication of withdrawal, the ICC has reopened the bidding for India’s media rights for the 2026–29 period. To recover losses, the ICC has reached out to Sony, Netflix, and Amazon, quoting a price near USD 2.4 billion. So far, none of them has stepped forward because the cost is considered too high. Netflix is still building its sports segment, Amazon’s presence in cricket is limited, and Sony is approaching the situation very carefully.

The broadcaster’s financial strain is evident in its latest numbers. JioHotstar’s provisions for potential sports-related losses jumped to ₹25,760 crore in 2024–25, compared to ₹12,319 crore the previous year. This reflects how long-term cricket rights have failed to generate the expected returns. Before merging with Viacom18, Star India had already suffered large losses for the same reasons.

Industry analysts say that the drop in advertising revenue has added to the problem. With real-money gaming ads restricted, almost ₹7,000 crore worth of spending disappeared from the market, causing a big hit to cricket broadcast earnings. Traditional advertisers have not been able to compensate for this gap.

If no new buyer comes forward, JioHotstar may still have to complete the contract until 2027 because of legal obligations. The situation signals a major slowdown in the sports broadcasting sector, and possibly the beginning of a larger market correction.