Subscription for IPL media rights: Amazon pulls out; Star, Viacom18, Sony, Zee in 4-way race– The much-anticipated duel between Jeff Bezos and Mukesh Ambani to acquire one of the world’s most expensive sports properties will not happen now as OTT giants Amazon withdrew from bidding for IPL media rights on Friday, which was set to begin on Sunday. Viacom18, owned by Reliance Industries Limited, is considered one of the strongest contenders in both TV and digital.Follow IPL Media Rights Tender, IPL live updates on InsideSport.IN
Bezos-funded Amazon was expected to be one of the largest bidders in the digital space, but pulled out of the race without revealing the reason. Yes, Amazon is out of the race. They did not participate in the technical bidding process today. As for Google (YouTube), they had retrieved the bidding document, but not submitted it. At the moment 10 companies (TV and streaming) are confused,” a senior BCCI official told PTI under conditions of anonymity.
A battle of four
There are four specific packages in which e-auction will be held for 74 matches per season for a five-year period from 2023-2027, with a provision to increase the number of matches to 94 in the last two years. Package A has exclusive TV rights (broadcasting rights) to the Indian subcontinent, while Package B covers digital rights for the Indian subcontinent.
Pack C is for 18 select games in each season for digital space, while Pack D (all games) is for combined TV and digital rights for overseas markets.
“Let’s make it clear, the Viacom 18 JV (Joint Venture), current rights holder Walt Disney (Star), Zee and Sony are the four contenders for the packages with solid footprint in both the TV and digital markets,” said the official.
Some of the other contenders, mainly for digital space, are: Times Internet, FunAsia, Dream11, FanCode, while Sky Sports (UK) and Supersport (South Africa) compete for overseas TV and digital rights. Last time, Star India bought rights for both TV and digital with a compound offer of Rs 16,347.50 crore, but this time the compound base price is over Rs 32,000 crore.
All bidders will have to bid for each package individually this time. As of Friday, some of the major players involved in the bidding process believe that Rs 45,000 crore (about $5.8 billion) is the amount BCCI could expect which will be a two-and-a-half times higher valuation.
Ready Reckoner’ for IPL media rights
Q: What are the dates of the media rights auction?
A: It is expected to take two days – June 12 and 13.
Q: What is the period of IPL media rights?A: The period is five years from 2023-2027.
Q: Number of matches per season?
A: It’s 74 with the ability 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 offered?
A: A: Indian Subcontinent TV rights for Rs 49 crore per game.
B: Digital rights for the Indian subcontinent for Rs 33 cr per game.
C: 18 match, non-exclusive digital package for Rs 11 crore per game.
D: Overseas TV and digital rights for Rs 3cr per game.
Q: What is the compound base price for all packages?
A: The total compound base price for all four packs is Rs 32,440 cr.
Breakup: Package A costs Rs 18,130 cr (74x49x5)
Package B is Rs 12,210 cr (74x33x5)
Package C is Rs 990cr (18x11x5)
Package D is Rs 1110cr (74x3x5)
Q: What do large companies offer?
A: There are 10 companies competing: Viacom18 JV (Joint Venture) with Lupa Systems (Uday Shankar and James Murdoch), Walt Disney (Star), Zee, Sony (both India
media and digital rights).
Times Internet, Fancode, FunAsia, Dream11 (digital rights only).
Supersport (South Africa) and Sky Sports (UK) compete for overseas TV and digital rights.
Q: Can one entity make a composite bid like Star did last time?
A: No. Each package is awarded to the highest bidder.
For example, Facebook had made the highest digital bid for Rs 3,900 crore in 2017, but Star seized the rights with a huge
composite bid despite a lower digital bid.
Q: Can one entity get two packages?
A: Yes, that is possible. Suppose Star has the highest bid for India TV rights (Package A) for an ‘x’ amount and Sony places the highest bid for India
digital rights for ‘y’ amount, both companies can challenge each other in a tie-breaker.
Q: Which pack could see a fierce battle?
A: Package C, which has non-exclusive rights for 18 games, including opening game, final, three playoffs and a few weekends
All the major players (Viacom, Zee, Sony, Star) would love to own this digital package. If a company gains digital rights in India and loses non-exclusive rights, then it loses huge revenue (ads plus subscriptions) for those 18 games
that are accessible on any other platform. Companies would want to buy it to kill the competition.
Q: What is the type of auction being held?
A: Just like last time, it will be an e-auction where companies can increase their bid by 50 crore in one go. E-auction is transparent
but time consuming.
Q: What is the type of money the BCCI expects?
A: The BCCI expects it could earn another 12,000 in addition to their compound base price of Rs 32,440 crore to
12,500 crore which could bring the valuation up to Rs 45,000 crore.
Follow IPL Media Rights Tender, IPL live updates on InsideSport.IN