The Board of Control for Cricket in India (BCCI) is set to auction media rights for TV and digital coverage of bilateral matches within India for the next five years on August 31. As bidders like Disney Star, Viacom18, and Sony Pictures Networks India (SPNI) vie for these rights, BCCI’s optimism stems from their previous successes, particularly the staggering Rs 48,390 crore earned from the IPL rights.
Although the reserve price is now 25 percent lower than the last cycle’s average of Rs60 crore per match, the board as per sources is confident in the appeal of Indian cricket. Even if they stick to the previous cycle’s average, the board could still earn Rs5,280 crore over the next five years, however their goal is to touch Rs100 crore per match.
The auction will cover matches scheduled from September 2023 to March 2028, comprising 88 games, including 25 Tests, 27 ODIs, and 36 T20Is.
The escalating value of media rights is closely intertwined with advertising expenditure (AdEx). In 2022, Sports AdEx rose to nearly Rs 11,500 crore and is projected to hit Rs 12,500 crore in 2023. However, this auction necessitates translating bids into effective monetization without excessive spending.
Disney Star, Sony Sports, and Viacom18 are the prime contenders while each of the parties have different interests when it comes to prioritizing TV and digital packages.
Despite strong traction in ratings, Jio’s free streaming during IPL transformation has reshaped the landscape and that is expected to impact today’s auctions. As per experts, Viacom18 will be leaning towards digital rights, while Sony and Star will put up a strong fight to claim television rights to enhance their premium cricket content library.