IPL Media Rights: Star, Viacom18, Sony, Zee In 4-Way Race – All Details Here
The much-awaited duel between Jeff Bezos and Mukesh Ambani over the acquisition of one of the world’s most expensive sports properties will no longer materialize as OTT giant Amazon on Friday pulled out of the IPL media rights bidding, which began Sunday (June 11). is about to begin.
Viacom18-owned Reliance Industries Limited is considered one of the strongest contenders in both the TV and digital space. Bezos-funded Amazon was expected to be one of the biggest bidders in the digital space, but dropped out of the race without giving a reason.
“Yes, Amazon is out of the race. They did not participate in the technical bidding process today. As far as Google (YouTube) is concerned, they had picked up the bidding document but did not submit it. So far, 10 companies (TV and streaming) are in the fray,” a senior BCCI official told PTI on conditions of anonymity.
an all-out fight
BREAKING: #IPL Media Rights — Evaluation of technical bids is underway.
Amazon hasn’t come to the table. It looks like a pull-out.
Who has come? Viacom, Disney, Sony, Zee, Times Internet, SuperSport, FunAsia.
The technical evaluation started at 11 am and will end at 6 pm.
— KSR (@KShriniwasRao) June 10, 2022
The IPL e-auction for the media rights for 2023-27 will be held on June 12. Base price: Rs 32,890 crore.
Here are the numbers you need @afaqs pic.twitter.com/2edlwOwUua . need to know through
— srikant khandekar (@sreekantafaqs) June 10, 2022
There are four specific packages in which e-auction will be conducted for 74 games per season for a period of five years from 2023-2027, with a provision to increase the number of matches to 94 in the final two years.
Package A contains exclusive TV (broadcast) rights for the Indian subcontinent while Package B includes digital rights for the Indian sub-continent. Package C is for the 18 selected games in each season for the digital space while Package D (all games) will be for the combined TV and digital rights for overseas markets.
Amazon out of the race #IPL #IPLMediaRights #AmazonPrimeVideo #BCCI pic.twitter.com/DsO6t9Cw4T
— Fantasy Sports King (@FantasySportsK1) June 10, 2022
“Let us make it clear that Viacom18 JV (JV), current rights holder Walt Disney (Star), Zee and Sony are the four contenders for the package with a solid footprint in both the TV and digital market.
Some other contenders, primarily for the digital space, are: Times Internet, FunAsia, Dream11, Fancode while Sky Sports (UK) and SuperSport (South Africa) will be vying for overseas TV and digital rights. Last time, Star India had bought the rights for both TV and digital with an overall bid of Rs 16,347.50 crore, but this time the overall base price is over Rs 32,000 crore.
This time all the bidders will have to bid separately for each package. As of Friday, some of the big players who are involved in the bidding process feel that Rs 45,000 crore (about USD 5.8 billion) is the amount BCCI can expect which will be a two and a half times increase in valuation. ,
PTI has prepared a ‘ready reckoner’ for IPL media rights
Q: What are the dates for the media rights auction?
A: It is expected to be for two days – June 12th and June 13th.
Q: What is the duration of IPL Media Rights?
A: This period is for five years from 2023-2027.
Q: Number of matches per season?
A: It’s 74 with a provision to go up to 94 in the last 2 seasons.
Q: What is the current valuation of IPL Media Rights?
A: Rs 16,347.50 crore for both TV and digital with Star India.
Q: What are the packages on offer?
A: 1) TV rights for the Indian subcontinent Rs 49 crore per game.
2) Digital rights for the Indian subcontinent at Rs 33 crore per game.
3) 18-match, non-exclusive digital package of Rs 11 crore per game.
4) Overseas TV and digital rights Rs 3 crore per game.
Q: What is the overall base price for all packages?
A: The total compounded base price for all the four packages is Rs 32,440 crore.
Break-up: Package A is Rs 18,130 crore (74x49x5)
Package B is Rs 12,210 crore (74x33x5)
Package C is Rs 990 crore (18x11x5)
Package D is Rs 1110 crore (74x3x5)
Q: Which major companies are bidding?
A: 10 companies are in the fray: Lupa Systems (Uday Shankar and James Murdoch), Walt Disney (Star), Zee, Viacom18 JV (JV (JV) with Sony (both Indian media and digital rights).
Times Internet, Fan Code, FunAsia, Dream11 (digital rights only). SuperSport (South Africa) and Sky Sports (UK) are vying for overseas TV and digital rights.
Q: Can a unit bid overall like last time star?
A: No. Each package will be awarded to the highest bidder. For example, Facebook submitted the highest digital bid in 2017 for Rs 3900 crore, but Star grabbed the rights with a bigger overall bid despite the lower digital bid.
Q: Can one unit get two packages?
A: Yes, it is possible. Suppose, if Star has the highest bid for India TV rights (Package A) for ‘X’ amount and Sony makes the highest bid for India’s digital rights for ‘Y’ amount, then both the companies will be a- Can challenge the other in a tie-breaker. ,
Q: Which package can see the toughest competition?
A: Package C, which holds non-exclusive rights for 18 games including the opening game, final, three play-offs and some weekend double-headers. All the major players (Viacom, Zee, Sony, Star) would like to own this digital package. If a company wins India’s digital rights and loses non-exclusive rights, it loses massive revenue (ads plus subscriptions) for the 18 games that can be accessed on any other platform. Companies will want to buy it to eliminate competition.
Q: What type of auction is being held?
A: Like last time, this will be an e-auction where companies can raise their bids up to 50 crores in one go. E-auction is transparent but time consuming.
Q: What kind of money does BCCI expect?
A: The BCCI is expecting that over their overall base price of Rs 32,440 crore, it can earn Rs 12,000 to Rs 12,500 crore with the valuation going up to Rs 45,000 crore.