Mumbai/New Delhi Disney, Sony and India’s Reliance will face off on Sunday for the media rights of the world’s richest cricket league, the Indian Premier League (IPL), which is expected to fetch up to $6 billion.
Counting top Indian industrialists and Bollywood stars like Shah Rukh Khan among its franchise owners, the IPL is often seen as a sure-fire ticket to high TV ratings and growth in India’s booming online streaming space.
But digital and television rights are expected to more than double from 2023 to 2027. 16,348 crore ($2.09 billion) that Star India, now owned by The Walt Disney Company, paid for the rights in 2017 through this year, something observers say may be a caution.
“Globally there is also a shift towards sensible valuations, where investor expectations have shifted from ‘growth at any cost’ to ‘growth with profit’,” said Mihir Shah, Vice President, Advisory Media Partners Asia.
Treasurer Arun Singh Dhumal told Reuters that the Cricket Board of India (BCCI) will begin online bidding for the rights from 0530 GMT on Sunday. The results are expected later on Sunday.
“The IPL is cricket’s most popular asset and has just been expanded to a 10-team tournament, which means there will be more matches,” Dhumal said. “All of this should be reflected in the value of the new media rights, which we expect to be significantly higher than our previous deal.”
Gujarat Titans, owned by European buyout firm CVC, won the 15th edition of the league by defeating Rajasthan Royals in the final on 29 May in front of over 100,000 fans in Ahmedabad.
The dazzling T20 league attracts the planet’s best cricketing talent for two months of fast-paced matches played in stadiums packed with cheerleaders and live music.
But in a sign of the potential limits of the boom, Amazon.com Inc pulled out of the bidding process on Friday, saying it did not think it was a viable growth option for the company in India.
Reliance Industries Limited will bid through its broadcasting joint venture, Viacom18. The merger talks between Sony Corp’s Indian arm and local broadcaster Zee Entertainment are underway, but will bid separately.
A source with knowledge of the company’s plans told Reuters, “Viacom 18 will probably be the most aggressive of the three main players, as it is one of their long-term plans, including raising valuations for a potential Jio IPO in the future.” Is.”
The e-bidding process will be for broadcast rights, digital rights, a bespoke package that includes rights to high-value matches as well as broadcast rights in overseas territories.
Last time, Star India had won a consolidated bid that gave it broadcast rights on both television and digital platforms.
“At a renewal value of $5 to $6 billion or more, the rights would require the winner to achieve a significant level of $20 billion in the competitive streaming and TV industry,” Shah said.