With one day to go for IPL media rights e-auction, 10 contenders weigh their chances

With roughly a day to go for the much anticipated media rights e-auction for IPL 2023-27, what has intrigued the analysts and sports fans is Amazon’s surprise withdrawal from the bidding race. The last-minute withdrawal means that the final battle for the media rights will be between Disney-Star, Mukesh Ambani-owned Reliance Industries-backed Viacom18, Sony Pictures Networks India (SPNI), and Zee Entertainment Enterprises Limited (ZEEL).

The presence of the American ecommerce giant, which owns one of the leading streaming services Amazon Prime Video, at the IPL media rights e-auction had given a new dimension to the keenly watched fight. Media reports state that Amazon had invested more than $6 billion in India. But, analysts say, it might not make business sense for the e-commerce giant to make such a huge investment in the IPL.

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It may be recalled that Amazon has already spent top dollars on European soccer rights, while signing deals to broadcast Thursday Night Football in the US for the next ten years or so.

IPL is unique this time around. BCCI has separated TV and digital rights, and has created non-exclusive digital rights for IPL, giving newer possibilities for new entrants like Amazon to throw their hat into the IPL ring. Analysts had estimated that it was a great opportunity to enter the lucrative live cricket in India.

The e-auction proceedings will begin on Sunday, June 12, 2022, at around 11 am. There is no expected closing time and some reports say that it could extend to the next day.

BCCI is expecting a windfall from the IPL media rights. For the media rights for the 2023-2027 period, the base price set by the BCCI is Rs 32,890 crore. While the base price for TV rights has been fixed at Rs 49 crore per match, the digital rights is Rs 33 crore per match.

BCCI office-bearers, while refusing to share any numbers on the media rights, are confident that it will be a record-breaking figure. Industry insiders are sure that the number will surely cross the Rs-50,000-crore mark for the five-year period.

The value of each match is estimated to surpass the Rs-100-crore mark. In such a scenario, industry experts estimate that the IPL will become the second most expensive sporting property in the world, only behind America’s National Football League (NFL). The per-match value of NFL is in the range of Rs 134 crore per match.

In addition to India, the IPL will be broadcast across various countries in the subcontinent such as Nepal, Sri Bhutan, Lanka, the Maldives, and Bangladesh. It will be broadcast in seven languages, such as English, Hindi, Kannada, Tamil, Bengali, Telugu, and Malayalam.

The top contenders

The e-auction will be the largest ever in the history of sports. No wonder, all the leading players in India, from legacy players to new-age digital entities, are out there to win the bidding war.

We have seen how IPL has changed the fortunes of Sony in India. So is the case with Disney Star, which grabbed the IPL media rights after Sony. It is a known fact that IPL can change the fortunes of a media company. As far as a broadcaster is concerned, sports is essential to bring in advertising money, and increase subscribers. To put things into perspective, Star would charge Rs 14 lakh just for a 10-second ad slot in 2021. Indeed, Hotstar’s popularity surged and subscribers increased in India, primarily on account of live cricket. One need not look elsewhere for the reason for astronomical increase in the IPL media rights and the mad rush to win the race.

The value of IPL during the 2018-22 time period was Rs 16,348 crore, with Disney Star bagging the media rights. The value of each match was set at Rs 54 crore. Disney Star, with its legacy and deep pockets, is eager to retain the rights and has stated its willingness to splurge in the bidding process.

At least ten companies, which include, among others, Zee Entertainment, Google, Disney-Star, Amazon, Apple, Sony, SuperSport and Sky Sports UK, have obtained the bid documents after paying the BCCI the requisite non-refundable amount.

Another prime contender is Sony Pictures Networks India (SPNI), which earlier had the media rights for 10 years (from Season 1 to Season 10), shelling out Rs 8,200 crore for the rights. SPNI, after its merger with Zee Entertainment Enterprises Ltd, is eager to get back the IPL property.

Other major players in this bidding battle for IPL rights are Reliance-owned Viacom18 and Amazon. Viacom18, armed with the investment by the James Murdoch-Uday Shankar duo, will bid for IPL media rights. Reliance has recently picked up the media rights of a couple of sports properties such as Abu Dhabi T10 (cricket), FIFA World Cup 2022, Spanish football league La Liga, and the NBA (National Basketball Association).

Amazon’s Prime Video, which has already started live-streaming cricket matches and is eager to increase its subscriber base in India, is another major contender in this high-profile bid for the IPL digital rights.

We have to wait till June 12 to see who will win this eagerly awaited bidding process.