New Delhi The television and digital rights to broadcast Indian Premier League (IPL) matches in the Indian subcontinent were sold in bulk. 44,075 crore on the second day of the ongoing e-auction, said three people familiar with the bidding process, as the broadcasting giant bets on the IPL’s pan-India popularity and explosive internet adoption.
In the last auction in 2017, Star India won the IPL’s global media rights, including TV and digital, for five years. 16,347.50 crore.
The Board of Control for Cricket in India (BCCI), which runs the league, will on Tuesday formally name the winners, one of the three people mentioned above, said a person close to cricket’s apex body. The total bid amount assumes a total of 410 matches to be played in five IPL seasons, as indicated by the apex cricket body.
The other person cited above said that Viacom18, owned by Reliance Industries, went fast with the digital streaming rights. 50 crores per match against the floor price 33 crores set by BCCI. In April, Bodhi Tree Systems, an investment platform led by Uday Shankar and James Murdoch’s Lupa Systems, agreed to invest. 13,500 crore in Viacom18, giving it around 40% of the company.
Although there was no confirmation, several media executives indicated that Disney-Star India had an edge over rivals in the auction for the TV rights at the close of the bid. A Disney-Star spokesperson declined to comment.
The auction that began on Sunday concluded on Monday for Packages A and B, with TV rights prices marginally rising from the previous day. TV rights bids closed 57.50 cr per match, up 17.3% 49 crore floor price.
The bidding for Package C began on Monday evening, with a base price of Rs. 16 crores per match and is expected to end on Tuesday. This package offers 18 games, including opening matches, four playoffs, and night games of doubleheaders. When the auction closed for the day, the bids were up 18 crores. Package D, which will also be offered on Tuesday, includes the rest of the world rights for both TV and digital. 3 crores per match.
A sports marketing executive said on the condition of anonymity that the bidding has been as expected and will generate good revenue for the BCCI. At the time, the per-match price for TV rights was approx. 38 crore and was for digital 13 crore, the executive said.
It is not hard to see why the bidding for the digital media rights of the IPL has turned aggressive. According to the FICCI-EY report released earlier this year, online video subscription revenue grew by 27% in 2021 5,400 crores. Paid video subscriptions crossed 50 million for the first time in 2020 and increased to 80 million in 2021. Access to digital advertising increased by 29% 36,300 crore in 2021.
The same report said that internet penetration increased by 5% in 2021 to 834 million people, of whom 795 million had broadband access as of September 2021. Additionally, smartphone users reached 503 million, and connected TVs crossed the 10 million mark.
Nevertheless, TV remains an attractive addition to the IPL, as it is a growing medium. A report published in 2020 by Broadcast Audience Research Council (BARC) India said that TV households grew by 6.9% to 210 million from 197 million in 2018. Individuals watching TV also increased by 6.7%, effectively an increase of 56 million. TV homes in urban and rural markets grew by 4% and 9%, respectively, it said.
According to a report by BARC, TV advertising volume resumed in 2021, despite reports of viewers in large cities shifting from cable and DTH connections to streaming services. Total TV advertising between January and December 2021 saw an increase in ad volume by 22% in 2020 and an increase of 18% in 2019.
However, this year’s IPL 15 edition saw a drop in viewership, and critics argue that it would be difficult to recover the investment in property by the winners. “It is too early to say whether the rights holder will recover this money. I think the real value of IPL is being unlocked, and that recovery will not be based only on ad rates. Naveen Khemka, CEO, South Asia, Mediacom, said, “Many new sources of revenue will emerge, and success will depend on how well the winning network is able to monetize it.”