There are at least 10 players in the race for the media rights of the Indian Premier League for 2023-2027. The mock auction, conducted by the Board of Control for Cricket in India (BCCI) ahead of the final auction on June 12, gives a clear indication of the names in the field for India’s biggest sporting asset.
The list includes top national broadcasters – Zee, Disney Star, Sony and Viacom18. Big tech firms Amazon India and Google India are also expected to participate. Fantasy cricket platform, Dream11 and domestic streaming platform MX Player are other potential bidders. The global bidders for the rest of the world’s media rights could be Sky Sports (UK) and South African company Super Sport.
Only those entities that had purchased the bidding documents issued by the BCCI in March were eligible to participate in the mock auction.
rising base price
The BCCI has set the base price for the much-anticipated sports asset across all four categories (broadcast rights for the Indian subcontinent, digital rights for the Indian subcontinent, non-exclusive package digital and rest of the world broadcast and digital rights). kept together. Financial services firm, Elara Capital, predicted that the media rights would be sold for anywhere between ₹50,000 and ₹60,000 crore.
As streaming continues to gain momentum, and broadcasters face challenges from big tech for digital rights, the digital category is expected to go for a premium price.
“Digital is expected to see 100 per cent premium on the current base (price), while TV premium is 40 per cent,” the Elara Capital report said. “Based on these premiums, the share of digital in IPL media rights may increase to 50 per cent. We anticipate revenue CAGR of 6 per cent and 35 per cent in FY23E-28E for TV and Digital respectively,” the report said.
According to Elara, a third of Star’s revenue is IPL-led (TV+Digital). “If Star wins the IPL rights, this revenue contribution will increase to 40 per cent as digital growth accelerates. By our estimates, 70 per cent of Star India’s ad-based video on demand revenue is led by IPL, with subscription video on demand revenue largely following suit.
Published on
June 06, 2022