Stakeholders are anticipating pragmatic bids at the Board of Control for Cricket in India’s (BCCI) auction of media rights bid for the 2023-2027 cycle, mirroring the duration of Indian Premier League (IPL) contracts. However, the era of extravagant spending seen with IPL rights acquisition earlier might not repeat itself for BCCI rights, experts predict. A measured approach is more likely, signifying a correction in the approach to valuation.
“Media rights are intricately linked to AdEx (advertising expenditure). In 2022, Sports AdEx surged to nearly Rs 11,500 crore, and is expected to touch Rs 12,500 crore in 2023. This time, bids must translate into effective monetisation without over-expenditure, a necessary correction that everyone is looking forward to,” said a subject matter expert who is also in the know of developments.
Even with BCCI presenting two packages this bidding season, one for TV rights in the Indian subcontinent and the other for digital rights, the list of contenders is not long. As per sources, Disney Star, Sony Sports and Viacom18 are the three participants in the bidding. All three surpass the net worth criterion of Rs 1000 crores.
“News about tech giants like Amazon, Meta and VC (venture capital)-funded online platforms seems like strategic leaks from BCCI to elevate bid prices. However, that didn’t work as per plan because while ratings indicate strong traction, monetisation poses challenges. Jio’s free streaming transformation has reshaped the landscape, amplifying the user base, while linear television stagnates in an unchanged universe,” said another expert.
Jio is a subsidiary of Jio Platforms.
Viacom18 is not interested in the TV side, according to media experts, who added that it is most likely the strongest contender for digital rights.
As for Sony, experts said premium cricket rights are the only thing they need in their bucket at the moment. “KBC (Kaun Banega Crorepati), Shark Tank, The Kapil Sharma Show, India’s Got Talent and India’s Best Dancer, which are some of the most popular shows in GEC (general entertainment channel), are already with them. BCCI rights would amplify their reach further and increase their universe because sports viewing is 2X of the entire content universe,” said a media analyst.
Sony in fact also tried for title sponsorship but lost out to IDFC First. Sony and IDFC First were the only two contenders.
Sources also said Star stands to lose nothing. “It’s an opportunity loss rather than a financial setback for them if they fail to secure the rights,” they added.