FIFA, the global football governing body, is said to be planning for a possible shortfall in broadcast revenues ahead of its next tournaments after a low-value proposal from India and delays in obtaining a large contract in China sparked concerns over media rights revenue.
Reliance Industries, the Indian giant, has bid around $20 million for World Cup broadcast rights in India, well below expectations for one of the fastest growing football markets, numerous reports said. The bid is thought to be well below past acquisitions, indicative of changing market dynamics and perhaps less rivalry among broadcasters in the region.
India has been seen as a significant potential market for FIFA because of its huge population and quickly growing internet audience. But industry observers say changing watching habits, the rise of streaming platforms and cautious expenditure by media firms could be affecting the worth of sports licenses.
There is still continuing uncertainty around Fifa’s discussions in China, another key market. The lack of an official announcement on a broadcasting deal has led to speculation that negotiations have either reached a stalemate or have yet to achieve a positive end. China was a big source of funding for international sporting events, so the delay could be a problem for FIFA’s business plans as a whole.
The combined scenario in India and China; two of the world’s largest media markets, is a problem for FIFA seeking to optimize global reach and revenue ahead of future competitions – including the expanded World Cup forms.
While there are existing obstacles, FIFA is anticipated to continue discussions and pursue other agreements, including digital streaming platforms, to secure larger coverage and financial security.
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