Three-day IPL media rights auction nets BCCI Rs 48,390 cr

The Board of Control for Cricket in India (BCCI)- IPL

The Board of Control for Cricket in India (BCCI) was successful in the sale of the media rights for the Indian Premier League, which resulted in a total revenue of Rs 48,390 crore (IPL). Even if it is little less than the initial estimate of Rs 50,000 crore that analysts were claiming the BCCI would make from the e-auction, it is still a major milestone, according to the opinions of the industry’s leading experts.

The BCCI Secretary Jay Shah announced the results of the e-auction that was held between Sunday and Tuesday in a tweet on Tuesday evening. The three companies that won were Disney-Star, Viacom18, and Times Internet.

While Disney-Star was successful in acquiring the television rights (package A), Viacom 18 was successful in acquiring the digital rights for both the Indian subcontinent and the unique package of 18-20 matches every season (package C).

Viacom18 and Times Internet, on the other hand, were successful in acquiring the rights to broadcast the T20 event internationally. The former (Viacom18) was successful in acquiring the rights (both digital and TV) to the markets in Australia, South Africa, and the United Kingdom. Shah stated that Times Internet has gained the mandate for both the United States and the Middle East and North Africa (MENA) areas.

“Since its inception, the Indian Premier League has been linked with progress. Today is a red-letter day for India Cricket, with Brand IPL achieving a new high with e-auction, resulting in INR 48,390 cr value,” said the league’s commissioner, Lalit Modi. The Indian Premier League is now the second most valuable sporting league in the world in terms of the value of each individual match! Shah wrote tweets.

At the conclusion of the bidding process, which took place over the course of three days, the per-match value of all of the media rights comprising packages A to C was determined to be Rs 140.74 crore. To be more specific, Disney-Star would be required to pay Rs 57.5 crore each match for the broadcast rights. Viacom18, which is currently the official online home of all Indian Premier League matches, would be required to pay Rs 83.24 for the digital rights to each match. This comprises the per-match value of the unique package of games, which is 33.24 crore, in addition to the per-match value of the Indian subcontinent, which stands at 50 crore.

Despite the fact that digital is barely behind television in terms of overall value, with a value of 23,491 crore (combined value of groups B and C) compared to 23,575 crore (value of television; group A), digital is still priced at a large premium above the basic price established by the BCCI.

According to Karan Taurani, senior vice president of research at Elara Capital, the digital rights for the Indian sub-continent commanded a premium that was roughly 70 percent more than the base price, and the TV rights commanded a premium that was 30 percent higher than the base price.

“Over the next five years, it is anticipated that revenues from digital media would increase at a pace of thirty percent, whilst revenues from television will increase within a narrow band of six to eight percent in the same period. In terms of the distribution, television and digital media share roughly 49 percent of the media rights, although digital only contributes 22 percent of the income. According to Taurani, the high premium that was paid by Viacom18 was done so primarily from a strategic aspect.

In accordance with this plan, Disney-Star and Viacom18 engaged in a frenetic bidding war on Tuesday for package C, driving up the premium to over 108 percent of the base price that was established by the BCCI. The competition was won by Viacom18 in the end.

Rebecca Campbell, chairperson of worldwide content and operations for The Walt Disney Company, stated that the company’s bids were “disciplined” and that they focused on “long-term value.”

“Given the cost involved in acquiring that package, we have made the decision not to move further with the digital rights. She explained that the Indian Premier League (IPL) is a significant part of their portfolio of television channels in India. “IPL provides an incredible opportunity for us to showcase our company’s powerful global brands and iconic storytelling. It is an important component of our television channel portfolio in India,” she said.

According to Shah, there has been a digital revolution in India, and he believes that the industry offers untapped potential. “The shifting nature of the internet ecosystem has affected the manner that people watch cricket. He claimed that it has been a significant contributor to the expansion of both the game and the Digital India agenda.

The Indian Premier League is today considered to be among the most valuable sports properties in the world, alongside leagues such as the National Football League and the National Basketball Association in the United States, as well as the English Premier League (football).

Written by morningnewshindi

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