The fourth season of the IPL is witnessing the lowest TRPs. The decline in viewership could be due to the afternoon telecast of these matches, the World Cup hangover and the steady erosion of the brand equity of this cricket jamboree
A few media reports have appeared which say that the current season of the Indian Premier League (IPL) has opened to the lowest-ever television rating points (TRPs) since its inception. The decline in viewership has been attributed to the scheduling of the matches in the afternoon, and the post-World Cup lull among cricket lovers.
The first 15 IPL matches this year recorded a TVR of 4.36, almost 18% lower than last season. It is also lower than IPL-season 2, when ratings dropped as the tournament was shifted to South Africa.
Moneylife had reported on 8th April on the possibility of decline in the popularity of IPL. (Will IPL4 disappoint on the business front?).
A forecast was made by the Brand Finance Study, which reported that the brand value of IPL has dropped by 11%. Reports of ballooning costs started coming in, after the auctions which saw players being signed in at eye-dropping amounts.
The buzz surrounding the tournament is lacking. Many advertisers had earlier reserved their resources for the IPL, which was regarded as more popular with women. However, with the World Cup seeing phenomenal ratings pouring in, they rushed for advertising spots which were booked at exorbitant rates. Therefore, many of these advertisers exhausted themselves with the World Cup.
The audience too, was exhausted after cheering in the World Cup. Neither was there much time for brand building and advertising available after the mega-tournament. As a result, the teams, especially the new ones, could hardly popularise themselves. No wonder, there are hardly any favourites for this instalment.
The controversy surrounding the last season hasn't fizzled out either, and not many were enthusiastic about watching matches which could possibly be have been fixed beforehand. The absence of Pakistani cricketers has also not gone down well with many people.
If the ratings do not go up, the broadcasters could feel the heat. Sony Set Max
may not be able to charge high amounts for the next season, or may even admit to charging lower rates during the present season.
Rising costs is seen as the major reason for corporates reporting a decline in their earnings
Negative cues from the global markets point out to a gap-down opening for the domestic market. The US markets settled mixed on Monday on concerns that rising costs will hurt corporate earnings, going forward while lower-than-expected earnings led to a negative opening for the Asian markets on Tuesday and the SGX Nifty was down 15 points to 5,862 compared to its previous close of 5,877 on Monday.
ACC, Ambuja Cements, Gateway Distriparks, Patni Computers, Petronet LNG, Tata Teleservices, UltraTech Cement and Wipro are among the corporates that will announce their earnings figures today.
The market opened sideways yesterday, weighed down by lacklustre quarterly results from Reliance Industries. The Sensex opened 63 points lower at 19,539 and the Nifty was at 5,860, down 25 points from its previous close. Gaining some strength in subsequent trade, the market touched the day's high at around 10am. The Sensex rose by 95 points to touch 19,697 and the Nifty added 22 points at 5,907 at the day's high.
The market erased most of its gains and was range-bound with the indices hovering on both sides of the neutral line till noon trade. Fluctuations continued in the post-noon trade with the market slipping to the day's low towards the end of the session, as passenger car maker Maruti Suzuki reported a marginal rise in fourth quarter earnings. At the day's low, the Sensex fell to 19,531 and the Nifty eased to 5,857. The benchmarks ended near those levels as lacklustre earnings hurt sentiment. The Sensex fell by 18 points to 19,584 and the Nifty closed the session 10 points lower at 5,875.
The market is showing signs of tiredness and unable to cross the previous high made in January. There are signs that we will get a short decline to 5,800 on the Nifty. If that level holds, the market may make an effort to move higher again. If no support comes, Nifty may fall to 5,660 and below.
Wall Street closed mixed overnight on concerns that rising costs will impact corporate earnings, going ahead. Auto equipment major Johnson Controls Inc fell 2.8% after the company said its fiscal third-quarter results would be hit by a drop in car production following Japan's massive earthquake last month. Post market hours, Netflix Inc declined 4.5% after the video rental company reported good profit and revenue, but issued an outlook for the second quarter that disappointed investors. Kimberly-Clark shed 2.7% after the consumer-products company missed analysts’ first-quarter earnings expectations.
In economic news, new home sales rose 11.1% in March to a seasonally adjusted 300,000 unit annual rate, after an upwardly revised 270,000 unit pace in February. The Federal Reserve, which is conducting its two-day policy meeting on Tuesday and Wednesday, will reveal its plan as its $600 billion bond buying programme is nearing its end.
The Dow fell by 26.11 points (0.21%) to settle at 12,479.88. The S&P 500 shed 2.13 points (0.16%) to 1,335.25 while the Nasdaq rose 5.72 points (0.20%) to close at 2,825.88.
Muted earnings reports were also the cause for Asian markets opening lower on Tuesday. Nintendo tumbled 4.8% in Tokyo, Nidec declined 3.4% and Mitsubishi Corp lost 1.5% after copper and oil prices fell. Besides, Hyundai Merchant Marine Co tanked 4.7% in Seoul after posting an operating loss in the first quarter.
In commodity news, oil prices fell along with the dollar in choppy trade. London Brent crude fell marginally to below $124 a barrel, while US light crude shed 0.01% to close at $112.28. Gold continued to trade at record highs, settling up 0.36% at $1,508.60 while silver hit a historic high of $49.79 an ounce before paring gains to settle at $47.15.
The Shanghai Composite fell 0.32%, the Hang Seng declined 0.50%, the Jakarta Composite was down 0.14%, the KLSE Composite shed 0.04%, the Nikkei 225 tanked 0.98%, the Straits Times fell by 0.36% and the Seoul Composite shed 0.08%. On the other hand, the Taiwan Weighted was up 0.06% in early trade.
Back home, a high power committee comprising heads of various probe agencies and specialised departments has been constituted to monitor the investigation and steps taken to bring back black money stashed in foreign banks, the government informed the Supreme Court on Monday.
The government said the multi-disciplinary committee for the investigations and other steps likely to be taken, can co-opt members not below the rank of joint secretary for effective implementation of the work in consultation with the secretaries in home, foreign and defence ministries.