Digital rights in India: IPL: DisneyStar receives TV rights in India, Viacom18 receives digital rights

DisneyStar won the Indian Premier League (IPL) TV broadcast rights, while Viacom18 won the digital rights, people with knowledge of the matter said on the second day of the auction. The Board of Control for Cricket in India (BCCI) took a total of Rs 44,075 crore for the rights over the next five years, they said. The Board will make an official announcement after the completion of the auctions for the sale of all four rights packages.

Senior executives with direct knowledge of the events told ET that the Indian TV rights, or Package A, were won by DisneyStar for Rs 57.5 crore per match, or a total of Rs 23,575 crore for 410 matches over five years. Package B, digital rights to the Indian subcontinent, went to Viacom18, controlled by Reliance Industries, at Rs 50 crore per match, for a total of Rs 20,500 crore. Collectively, the rights were purchased for Rs 107.5 crore per match for the 2023–27 cycle.

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The reserve price for television and digital rights was Rs 49 crore and Rs 33 crore per match, respectively.

This amount is more than double the Rs 16,347.5 crore that DisneyStar paid in the most recent rights auction over a five-year period at Rs 54.5 crore per match. True, it was 60 matches a year.

As predicted by experts polled by ET, the auction was not overly aggressive with another bid for TV rights coming in on the second day, while the digital package received no new bids on Monday and ended at Rs 48 crore a piece. conformity. Subsequently, Package A winner, DisneyStar, challenged Viacom18 for digital rights, offering a counter bid of Rs 49 crore per match. Viacom18 outbid this offer by offering Rs 50 crore.

Package C auctions – non-exclusive India Digital Rights (18 matches) – started on Monday evening and will resume on Tuesday at 11:00 am, followed by package D (rest of the countries). On Monday night, the latest bid for Package C was Rs 18.5 crore per match, compared to the base price of Rs 16 crore.

Sports marketing experts said TV ad bids would need to rise to more than 20 lakhs in 10 seconds to break even, based on DisneyStar’s offer.

“Over the past five years, DisneyStar has increased its ad revenue from an average of 7 lakh to 14.5 lakh last season, but overall they may still have suffered some losses,” the expert said. “Now it will have to cost more than 20 lakhs and distribution income will also have to come in to make money.”

Recovery of Rs 50 crore per match could be difficult due to advertising and subscription revenue, the source said.

ET first reported on June 11 that there were only four bidders for India packages – DisneyStar, Sony Pictures Networks India (SPN), Viacom18 and Zee Entertainment Enterprises (ZEE).

Experts say that Viacom18 will have to purchase the C package to prevent leakage of ad revenue.

“While Viacom18 will not be bidding from the start, it will ultimately challenge the C package winner to secure the rights to keep these matches exclusive to Viacom18’s digital platforms,” one said.