Disneystar: IPL: DisneyStar gets TV rights; Viacom18 goes digital

Disneystar won the rights to broadcast Indian Premier League (IPL), while the digital rights went to Viakom18– said people who understand this issue, on the second day of trading. Control Council Cricket in India (BCCI) raised a total of Rs 44,075 crore for the rights over the next five years, they said. The Board will make an official announcement upon completion auctions 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 – Indian Subcontinent Digital Rights – Submitted

Viacom18, which is controlled by the industry, pays 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.

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.

IPL

Auction for packages C and D

As predicted by experts polled by ET, there was no overly aggressive bidding at the auction, 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 per match. 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.

The auction for Package C – non-exclusive digital rights in India (18 matches) – started on Monday evening and will resume on Tuesday at 11:00. On Monday night, the latest bid for Package C was Rs 18.75 crore per match, compared to the base price of Rs 16 crore, providing at least Rs 1,837.50 crore.

At the same time, two territories within the framework of the Rest of the World package (Package D) – territory A, which includes Asia, Australia, Canada, the Caribbean, Israel and New Zealand; and Territory D – UK and Europe – were won by Viacom18 for Rs 40 lakh and Rs 50 lakh per match respectively. These two territories will add Rs 164 crore and Rs 205 crore, respectively, to the BCCI coffers. Other territories – B (Middle East and North Africa); C (South Africa and sub-Saharan Africa); and E (USA). The base price for each of the five territories was 30 lakh per match.

Sports marketing experts said TV ad bids would need to rise to more than 20 lakh 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.”

On the digital front, refunding Rs 50 crore per match could be difficult due to advertising and subscription revenue, the source said.

ET first reported on June 11 that just four people were bidding for packages for India – DisneyStar. Sony Pictures Networks India (SPN), Viacom18 and

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Experts say Viacom18 will have to purchase package C 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.