The battle for IPL media rights will intensify this year

Chapek’s remarks indicated that Disney would work hard to forfeit the IPL media rights. It also set the tone for an unprecedented battle in the upcoming IPL auction, with the possibility that the higher bidders might win others. Disney-Star has the entire media rights of IPL for the last five years, which has been bought on 16,347.50 crore.

The sports broadcasting sector is currently full of rumored speculations The IPL auction will fetch Rs 35,000 crore. Even the networks are expecting the bids to go up.

In an interview to Mint last month, The Walt Disney Company India and Star India chairman K. Madhavan indicated that the company will not overpay for premium cricket assets. “We will look at the business plan, we will consult. Also, if it exceeds my business plan, my estimates, we will see,” Madhavan said on whether he would pay 35,000 crore for IPL.

The addition of two new teams – Gujarat Titans and Lucknow Super Giants – will somehow increase the base price as the total number of matches played will increase from the current 60 to closer to 90.

“If you’re starting from 22,000- 25,000 cr as base price, it won’t take more than a few minutes to touch 35,000 crore in e-auction. the price can be up to 40,000 crore,” said former Sony CEO Kunal Dasgupta, the first to buy the IPL media rights 15 years ago. Dasgupta is the founder of TripleCom Media, a Metaverse studio.

To maximize revenue, the Board of Control for Cricket in India (BCCI) is expected to terminate media rights this time; Meaning, sell the digital and TV rights separately as this is a hot property.

Despite the hefty price tag, the battle for IPL rights will be fierce. Disney-Star, Sony Pictures Networks India and Reliance Industries Ltd-led Viacom18 are expected to throw their hat in the ring. Amazon Prime Video has not commented on the IPL, but has shown its interest in cricket by acquiring India’s territory rights to stream New Zealand cricket matches through 2025-26. Experts said that new coalitions can be formed for these rights as the union can also bid.

It’s easy to see why networks are after all a prized asset. IPL is the only asset which is watched by the whole country. Content is divided into language sections in entertainment, but not in cricket. Cricket viewership is beyond language barriers.

Also, it provides live content to any broadcaster for more than two months which is a major plus given the growing viewership on TV and streaming.

Dasgupta attributed the difference between the total subscriber base for the IPL and other cricket properties to other platforms such as Disney’s streaming platform Hotstar (45 million) and Netflix (5.5 million). He expects millions of people to opt out of Hotstar if cricket moves to another streaming platform.

Then there’s the network effect. Other channels in the broadcaster’s portfolio benefit through cross promotion of programming. Importantly, the media rights holder has a sway over brands wanting to advertise during IPL matches. “You can ask media agencies and brands to spend on other channels if they want premium slots on IPL where inventory is limited. The policy initiated by Sony is apparently continuing,” Dasgupta said.

Still, IPL rights do not turn into profits. Rights companies break even at best. However, they bid based on a calculation of what they can achieve in terms of advertising and distribution revenue. probably because of that calculation Dasgupta said, “The figure of 35,000 crores is hovering around, which may not be much, as the Indian economy is going to grow rapidly in the next five years.”

Madhavan had earlier said in his conversation with Mint: “When someone invests billions of dollars in a particular sport, there is a reason for that. You don’t need to build anything else into the IPL. IPL is a global brand. …It’s a huge asset and everyone is interested in it.”