Hotstar-ICC Deal: The Real Situation is More Complex
Hotstar-ICC Deal: The Real Situation is More Complex
Star Network released a teaser for the 2026 Twenty20 World Cup. The short clip was part of a promotional campaign for the global event. However, this launch came at a time when strong media reports and social media chatter were suggesting that the broadcaster might exit its four-year media-rights deal with the ICC.
Launching a campaign does not completely rule out the possibility of Hotstar pulling out of the USD 3-billion agreement, but the two developments seem contradictory. Industry experts have pointed out that leaving such a massive deal would be both sudden and difficult, given the strict contracts and bank guarantees involved.
Hotstar, earlier known as Star Sports before its merger about a year ago, has had a long-standing relationship with the ICC since 2007. Its partnerships with other cricket bodies came later with the BCCI in 2011 and the IPL in 2018. Because of this long and mutually beneficial association, neither side would want matters to reach arbitration.
The USD 3-billion deal, which Jio inherited from Star after the merger, is considered overpriced. At the time of bidding, Sony had offered USD 1.6 billion, while Jio itself had bid only USD 900 million. This huge difference has placed a heavy financial burden on the broadcaster, and it is understood that Hotstar has shared its concerns with the ICC.
There are still two years left in the deal. Sources say the broadcaster and the ICC have been in regular talks about the financial strain. Meanwhile, the ICC has reportedly reached out to other potential broadcasters to gauge their interest in global cricket rights.
An official response from the ICC has not been given, but sources close to the matter say such communications are part of routine negotiations. It is also believed that none of these companies can realistically replace a giant like Hotstar.
The ICC’s options are limited because most of its member countries depend heavily on their share of global revenues to run cricket operations. Only India and England are financially strong enough to manage without ICC funding.
While Hotstar may be facing losses from the deal, a complete exit looks unlikely. Both sides have been discussing future plans and are expected to find a middle ground. Experts believe Hotstar’s importance gives it leverage to seek concessions.
The ICC has also warned its members that revenues in the next media-rights cycle may not be as high. Internal documents from member boards mention that income could drop significantly after the current cycle ends.
The ICC has reportedly told members to expect a 30% decrease in revenue from 2028 onwards, when new media contracts will be signed. Boards have been advised to prepare early and take steps to protect their domestic and high-performance cricket programs.