Media giants in pitch battle for India cricket rights -Breaking
Shilpa Jamkhandikar, and Amlan Chakraborty
MUMBAI/NEW DELHI (Reuters) – Disney , Sony India’s Reliance (NYSE:), and India’s Reliance (NYSE) will be competing for media rights at the Indian Premier League (IPL), which is the richest international cricket league. It’s expected that it could fetch as high as $6 billion.
IPL is a top-tier Indian franchise that includes Bollywood actors like Shah Rukh Khan and other prominent Indian businessmen. It’s often viewed as an easy ticket to good TV ratings and increased growth in India’s growing online streaming market.
While the expected digital and TV rights for 2023-2027 will more than double what Star India (NYSE:) Co paid for in 2017, the rights to the television and digital content through 2027, observers suggest that there may be a shift in the direction of caution.
“There is also a global shift toward saner valuations, where investor expectations have shifted from ‘growth-at-any-cost’ to ‘growth-with-profitability’,” said Mihir Shah, vice president of consultants Media Partners Asia.
Treasurer Arun Singh Dahal told Reuters that the bidding will start online for rights to the Indian cricket board (BCCI). Expected results will be announced later in the day.
Dhumal declared that IPL is the most in-demand property in cricket. The tournament has now been made 10-team, which will allow for more matches. It should all reflect in the new media rights value, which is expected to be much higher than our prior deal.
CVC European Buyouts owned Gujarat Titans won the 15th edition. They defeated Rajasthan Royals in Ahmedabad’s final on May 29, in front more than 100,000 people.
For two months, the T20 league attracts some of the best cricket talent on earth. It features fast-paced matches and packed stadiums filled with cheerleaders.
Amazon.com Inc (NASDAQ) stated that it didn’t consider it a viable option to grow the business in India, and pulled out of Friday’s bidding process.
Reliance Industries Ltd. will submit a bid via Viacom 18, its joint broadcasting venture. Sony Corp (TYO 🙂 India unit and Zee Entertainment local broadcaster are currently in merger discussions but will still bid individually.
According to Reuters, Viacom 18 is likely to be the most aggressive among the three major players because it builds into long-term plans. This includes increasing valuations for a Jio IPO in future,” a source familiar with the company’s plans said.
This e-bidding procedure will cover broadcast and digital rights. It also includes a custom package with rights for high-value matches, as well rights to be broadcast in other territories.
Star India won last year a combined bid which gave the broadcasting rights to both TV and digital platforms.
Shah stated that a renewal value of $5 billion to $6 billion would allow the rights to be renewed. Shah also said the winning party must have significant size in the competitive $20 billion streaming and television industry.
($1 = 78.098 Indian Rupees)