Sunday, June 26, 2022

IPL Media Rights Tender: From Disney Star vs Sony, will on Sunday IPL Rights be a battle between Amazon’s Jeff Bezos vs Mukesh Ambani? Check Details

Jeff Bezos poised to clash with Mukesh Ambani in auction for IPL media rights. Can they break Disney Star Network's hagemony on Cricket Rights?

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IPL Media Rights Tender – Bezos vs Ambani IPL Rights? Cricket rights in India, especially the IPL Broadcast & LIVE Streaming rights has always been a TWO HORSE RACE. Both the time IPL Media Rights have gone for a tender, Disney Star and Sony Sports Network have shared the spoils. But all of this can change on 12th June. The IPL Media rights can bring Amazon’s Jeff Bezos and Viacom 18’s Mukesh Ambani as the lead players in the fight for the rights: Follow IPL 2022 LIVE Updates & IPL Media Rights Tender LIVE Updates with InsideSPORT.IN

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IPL Media Rights Tender: From Disney Star vs Sony, will fight for IPL Rights be a battle between Amazon’s Jeff Bezos vs Mukesh Ambani? Check Details

Bezos vs Ambani IPL Rights? For the first time, the rights to broadcast matches on television and to stream them online will be sold separately.

This opens the door to Amazon.com Inc. and its Prime video service.

Ambani’s Reliance Industries Ltd. is also determined to win, according to people familiar with the matter. As the companies fight for e-commerce supremacy in one of the world’s fastest-growing markets – both can be pitted against each other.

What’s more, the cricket competition will take place live online over the course of two days. This means proxies for the two men will have to make minute-by-minute bids and counterbids in real-time.

Imagine a Sotheby’s-style auction with Bezos and Ambani, worth about $275 billion and $100 billion respectively.

“Winning the auction is about prestige and vanity, so Reliance, Amazon and others can be expected to flex their muscles,” said Aditi Shrivastava, co-founder and chief executive officer at digital entertainment startup, Pocket Aces. “It’s a big deal and bidders will surely fight tooth and nail to win the rights.”

IPL Media Rights Potential Bidders: Though Amazon and Reliance are the most ambitious, they join a horde of competitors.

The includes the Walt Disney Co.-owned Star India and its Disney Hotstar streaming service.

Also in the mix will be Sony Pictures and India’s Zee Entertainment Enterprises, multiple people said.

IPL Media Rights Tender: What is the BASE PRICE for the IPL Broadcasting & LIVE streaming rights for 2023 to 2027 Cycle?

IPL Media Rights Tender – IPL Rights Base Price: The tendering of the rights will be done via a e-auction module. The board has increased the BASE-PRICE by almost 100%.

The last cycle of rights were sold at 16,347.5. BCCI has doubled the base price to 33,000 crore this time.

“Everyone knows the value of IPL as product has increased in the last 5 years. We have divided rights into 4 bundles to unlock the real value for the rights. No composite bids will be allowed. For each package bidders will have to bid separately. Each package will have base price attached to it”, informed a top source in BCCI directly involved with the Tender process.

According to information available with InsideSport –

  • Bundle A – Indian Sub Continent Broadcast: Base price in this category is Rs 49 crore per game. Overall 74 Games base price would be Rs 18,130 crore for five years.
  • Bundle B – Digital rights Indian Sub-Continent: Base price for this package is Rs 33 crore per game. For five years, the calculation is Rs 12,210 crore.
  • Bundle C: Non Exclusive Package: The much-debated special package is in Bundle C which comprises 18 games and the reserve price in this cluster is Rs 16 crore per game. At 74 games per season and calculated for five years, the price of this bundle is Rs 1440 crore.
  • Bundle D: Rest of the World Rights (Outside Sub-Continent): Base price for this package is Rs 3 crore per game. The combined value of the reserve price is Rs 1110. crore for five years.
 
IPL Media Rights Tender: How much BCCI can earn in lieu of IPL Media Rights?
 
As per InsideSport’s understanding, BCCI can earn in the range of 50,000 Crore and above from the sale of IPL Media Rights for next 5 years.
 

IPL Rights E-Auction – IPL Media Rights Expectations – InsideSport has learnt that the BCCI has created a internal report on the valuation for IPL Rights Cycle 2023-27.

According to the report, Digital Rights will be the KEY-DRIVER to value of rights.

As per the report prepared by KPMG, the IPL Digital Rights package this time will fetch almost 500%-600% of the last cycle.

The highest BIDS for the Digital Rights package in 2018 was by Facebook. The social media giant had bidded 3,900 Crore for 5 years of Rights. Airtel was the next highest bidder for the category at 3280 Cr followed by Reliance JIO.

The incumbent Star Sports bidded only 1443 Cr for the DIGITAL Rights last time. They still managed to acquire the rights on account of highest overall number (broadcast + digital and other categories).

InsideSport has learnt that the BCCI internal valuation report has pegged the DIGITAL RIGHTS value very high this time. The report suggests that DIGITAL RIGHTS alone should fetch more than 15,000-16,000 Crore this time.

This is 500% more than the last CYCLE values.

IPL Media Rights Tender: Value for the Tender conducted in 2018

“Technology has changed since the last bid. Digital and OTT subsciption is a big play now. Each and every player in the market knows that IPL Rights can drive anyone’s subscription. We feel the values to be really high this time. It can go 5-6 times. We are sure multiple parties will be interested in the package”, informed the top BCCI official to InsideSport.

IPL Media Rights Tender coming out next week, BCCI expects IPL Digital Rights value to match IPL LIVE broadcast package commercials

IPL LIVE Streaming Rights vs IPL Broadcasting Rights: It is worth noting that in the ONGOING cycle of rights, Star Sports won the 5 years package for 16,347.5 Crore.

  • Insiders in BCCI feels Overall Bid should be more than 45,000-50,000 CR – which is 3 times the last overall bid.
  • BCCI feels Digital rights should fetch minimum 5 times of the LAST values i.e in the range of 15 to 16,000 CR
  • Broadcast Rights should go up minimum by 2.5 times
Follow IPL 2022 LIVE Updates & IPL Media Rights Tender LIVE Updates with InsideSport.IN
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