Bidding frenzy: IPL rights hit ₹43,050 cr on day one

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Day 1 of the e-auction for IPL TV and digital media rights reportedly surpassed 43,050 crores. The broadcasting companies like Disney-Star India, Viacom18, and Sony Pictures Networks India (SPNI) sought TV rights under Package A for the Indian subcontinent, said one of the two sources. Under Package B Zee Entertainment Enterprises Ltd (ZEEL) bid only for digital media rights.

Digital rights bids increased to 48 crores, up 45 per cent from 33 crores each match, while TV rights ended at 57 crores per match, up 16 per cent from 49 crores. IPL owner BCCI has divided media rights into four packages. The sale includes 410 matches over five years (2023-27). From 6 am to 6 pm, BCCI staged the auction at Mumbai’s Taj Lands End hotel. Monday’s auction will feature A and B. Then, C and D will be auctioned.

BCCI insider: “As more viewers go online, bidding for digital media rights increases.” Top sports marketing executive: Digital rights bidding takes less than 30 minutes. Digital bids climbed swiftly, while TV rights rose less. In the past five years, India’s digital media has exploded. India’s internet penetration rose 5% to 834 million in 2021, and 795 million had broadband by September 2021. Four hundred ninety-seven million viewed web videos. Disney+Hotstar’s success in India is attributed to Star’s IPL rights. India has 45 million of Asia’s 50 million Disney+ Hotstar members.

Zee5’s 6.5 million paid subscribers may desire IPL digital rights. If they merge, Sony and Zee shouldn’t compete for TV and internet rights. EY and Ficci reported in March that China’s pay-TV market was pressured. Fewer pay-TV homes and lower average revenue per customer lowered 2021 TV subscription revenue by 6.2%. Ten million households left pay-TV in the last two years, reducing IPL and other subscription model viewing. Lower-income consumers have migrated to DD FreeDish from premium DTH. One was noisy. Second broadcaster: “Over 42,000 crore.” The price is too much for Reliance Industries Ltd.-owned Viacom18, supported by Uday Shankar and James Murdoch’s Lupa Systems.

Bidding resumes Monday for Packages A and B; C and D follow. Package C grants non-exclusive digital rights for 18 matches at 16 crores each. Thus, bidding will be active. “Whoever wins package A may pair it with package C, which features 18 critical matches for 16 crores. Package C prices will climb “first-person” Package D costs three crores each for global TV and digital rights. The winner of the first bundle might re-bid on the second, prolonging the auction. The second-package winner can challenge the non-exclusive winner. The cricket board will announce a winner after all packages are bid on.

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