With Rs 16,347.50 crore with a single consolidated bid worldwide IPL media rights Star India bagged the cricketers for TV and digital broadcast. Sony is the one who holds the acquire rights from 2018 to 2022.
For the broadcast and digital rights in the Indian subcontinent and global markets for the next five years- A total of 24 companies had picked up the Invitation To Tender (ITT) to bid. However, out of 24 names only 14 turned up of the with their respective bids, which meant that there was no participation by the likes of Yahoo, Amazon and ESPN digital.
A total of 24 companies picked the several rights up for grabs up papers to contest it, but 14 out of them were present at the auction:
- Taj TV
- Gulf DTH
- Group M
- Media India
- Sky UK Ltd
- ESPN Digital Media
- BTG Legal Services
- Discovery did not submit their bids.
After a long technical evaluation, it was announced by BCCI CEO Rahul Johri that Times Internet, Reliance Jio, Airtel and Facebook could rightfully bid for digital acquisition while that for broadcast rights, Star and Sony had emerged as eligible candidates. However, it was later revealed that Star had launched a consolidated bid and was declared winner.
Even the rival Sony’s individual bid for broadcast (TV rights). The companies could form a consortium as per the rules and if its consolidated global bid happened to be greater than the sum total parts of every individual bid they stand to win the rights, this time was Rs 11,050 crore compared to Star’s Rs 6,196 crore.
“The IPL is a very powerful property, as we believe and there is lots more value that can be created for fans of cricket on digital and TV, The growth of sports in this country continues to be driven by the power of cricket, We would remain committed to ensure that.” said Uday Shankar Chairman of Star India.
A duration of 10 years Sony Pictures Network had won the IPL media rights for, In 2008, with a bid of 8200 crore, In 2015 IPL was handed over to Novi Digital for (three years) 302.2 crore as per the global digital rights.
From IPL media rights per year in half the duration (five years) the BCCI stands to earn nearly double that amount with earnings of Rs 3270 crore. From an IPL match compared to Rs 43 crore, ironically, for each international match that India play, the BCCI will now earn Rs 55 crore approximately.
Last year in September through an open-tender process the auction was supposed to take place. In the Supreme Court around 18 companies were in contention for it but then they intervened to postpone the bidding.
Various segments like India, Middle East, Africa, Europe and America holds the media rights which include broadcast (TV) and digital (mobile and internet) for people. It is expected that HotStar is the Star India’s digital vertical that would be used for live streaming of IPL matches in India.
- A WINNER: With a whopping bid of 16,347.50 crore, Star India wins consolidated IPL broadcasting rights
- BCCI CEO Rahul Johri has listed out the names eligible for the bids. For TV rights, Star and Sony PicturesNetwork are strong candidates.
- BCCI could be richer by more than Rs 20,000 crore through their earnings from the rights, as per the predictions.
- Rahul Johri BCCI CEO said that the revenue generation from the upcoming IPL media rights auction could be “historic”.
- In two categories the rights have been segregated – broadcast and digital (internet and mobile) rights.
- All the rights will be for a period of five years from 2018-2022.
- For a period of 10 years, Sony Pictures Network won the IPL media rights with a bid of Rs 8200 crore
- Rahul Johri BCCI CEO flags off the auction. The first company to place their bid is beIN Sports.