Auction for Cricket Media Rights: India’s Attempt to Attract Global Giants
The Board of Control for Cricket in India (BCCI) is making efforts to garner interest from global giants Amazonia.com Inc. and Alphabet Inc. in an auction for the media rights to Indian cricket team’s games. With waning interest from companies that had previously competed fiercely for the Indian Premier League (IPL) success, BCCI has decided to delay the start date of the auction process for the next five years’ bilateral series. This delay comes as the governing body aims to attract more companies and boost interest in this valuable cricketing property.
The Tepid Response from Media Companies
Media companies have shown a lukewarm response ahead of the auction, highlighting the challenges faced in generating revenue through weak advertising revenues. While the shorter format IPL has been successful in gaining higher audiences over the years, interest in other bilateral series has dwindled. The sale process is already two weeks behind the timeline suggested by Ernst & Young, the advisor, and was supposed to be completed by the end of August. However, with the current response from media companies, this timeline seems uncertain.
The Expectations and Pricing
Ernst & Young expects the sale of media rights to 102 games to raise at least $750 million, which is nearly the same price as the previous sale five years ago. However, it is worth noting that the rights for IPL, which were auctioned last year, witnessed nearly triple the price since the previous bid. This discrepancy raises questions about the potential pricing and bids for the Indian team’s bilateral series. Despite the challenges, the IPL remains one of the most famous sporting contests in the world, attracting a significant audience.
Potential Bidders and Their Approach
Viacom 18, which had outbid other competitors in the previous IPL auction, will be aggressively bidding for digital media rights to the bilateral series. On the other hand, Disney, which struggled to turn a profit due to weak advertising revenue, may adopt a cautious approach, given its ongoing cost-cutting measures globally. Amazonia.com Inc. and Alphabet Inc., the global giants being targeted by BCCI, are yet to respond to the invitation to bid for the media rights. Their entry and approach would play a crucial role in determining the outcome of the auction.
The Impact of Technology and Online Viewing
The rise of technology and online streaming platforms has had a significant impact on the overall viewership of cricketing events. Mukesh Ambani’s JioCinema, for instance, made the 2023 edition of IPL available online for free, affecting the profitability of traditional media rights. This shift in viewing patterns and the availability of free streaming options raises questions about how the media rights auction for the bilateral series will fare. With Disney undergoing cost-cutting measures and Viacom 18 aggressively pursuing digital rights, the landscape of media rights for cricket is evolving rapidly.
Conclusion
The auction for the media rights of the Indian cricket team’s bilateral series has faced a tepid response from media companies. The struggle to generate significant revenue through advertising, coupled with the rise of online streaming platforms, has posed challenges for traditional media rights. BCCI’s efforts to attract global giants like Amazonia.com Inc. and Alphabet Inc. highlight the need for innovative approaches to secure bids. The outcome of the auction will not only determine the financial success of the bilateral series but also showcase the evolving dynamics of media rights in the cricketing world.
Summary: The Board of Control for Cricket in India (BCCI) is seeking to attract interest from global giants Amazonia.com Inc. and Alphabet Inc. in an auction for the media rights to Indian cricket team’s games. The tepid response from media companies ahead of the auction reflects the challenges in making money from weak advertising revenues. The sale process is two weeks behind schedule, with Ernst & Young expecting the rights for 102 games to raise at least $750 million. Viacom 18 will aggressively bid for digital media rights, while Disney may take a cautious stance. Mukesh Ambani’s JioCinema and the availability of free online streaming options have impacted traditional media rights. The auction’s outcome will shape the cricketing world’s media rights landscape, highlighting the need for innovative approaches to secure bids.
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The proposed start date of the auction process for the media rights of the so-called bilateral series, played by the Indian team against other countries, for the next five years is postponed by at least two weeks as the Board of Control for Cricket in India (BCCI) is targeting more companies to boost interest in the property, according to people familiar with the matter.
The tepid response from media companies ahead of the auction highlights the struggle to make money on weak advertising revenues, with the shorter format IPL being the major cricket property garnering higher audiences over the years years. The sale process is two weeks behind a timeline suggested by its advisor, Ernst & Young, whereby the auctions would be completed by the end of August, they said.
EY expects the sale of the rights to 102 games to raise at least $750 million, nearly the same price as what was sold five years ago, the people said, asking not to be named as the information is not public. In contrast, IPL’s rights, which were auctioned last year, had nearly tripled since the previous bid.
The IPL remains one of the most famous sporting contests in the world and is still garnering the most eyes among cricketing events. Last year, BCCI raised record amounts of money by selling media rights to the IPL through an auction as Viacom 18 Media Ltd., controlled by billionaire Mukesh Ambani, and Walt Disney Co. outbid rivals, including Sony Group Corp.
However, Ambani’s JioCinema put the 2023 edition of IPL online for free, and Disney struggled to turn a profit due to weak advertising revenue.
Viacom 18 will be aggressively bidding for digital media rights to the two-sided series, while Disney is undergoing a series of cost cuts globally, it may be taking a cautious stance, the people said.
(AI Image)
Representatives from BCCI, Disney and EY declined to comment. Spokespersons Viacom 18, Amazon and Alphabet did not respond to emails asking for comment.
Star India, a Disney unit since 2019, had bought the rights to the two-sided series in the five years since 2018 for Rs. 61 billion ($741 million) and reported losses of around Rs. 10 billion from the asset, they said. people. A decision on splitting the media rights into digital and linear this time and conducting an electronic auction has yet to be made, they said.
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