IPL media rights: Amazon pulls out of bidding war, Viacom18 the strongest contender, says BCCI

The much-anticipated duel between Jeff Bezos and Mukesh Ambani over the acquisition of one of the world’s most expensive sports properties will no longer materialize as OTT giant Amazon on Friday pulled out of the IPL media rights bidding, which is set to begin on Sunday. .

Reliance Industries Limited Owned Viacom18 is considered one of the strongest contenders in both the TV and digital space.

Bezosfunded heroine Was expected to be one of the highest bidders in the digital space, but dropped out of the race without assigning any reason.

“Yes, Amazon is out of the race. They did not participate in the technical bidding process today. As far as Google (YouTube) is concerned, they had picked up the bidding document but did not submit it. So far, 10 companies (TV and streaming) are in the fray,” a senior BCCI official told PTI on conditions of anonymity.

Four-way fight – There are four specific packages in which e-auction will be held for 74 games per season for a period of five years from 2023 to 2027, with a provision to increase the number of matches in the last two to 94. years.

Package A contains exclusive TV (broadcast) rights for the Indian subcontinent while Package B includes digital rights for the Indian sub-continent.

Package C is for the 18 selected games in each season for the digital space while Package D (all games) will be for the combined TV and digital rights for overseas markets.

“Let’s make it clear, Viacom18 JV (JV), the current rights holder Walt Disney (Star), zee And Sony has four contenders for the package with a solid footprint in both the TV and digital market,” the official said.

Some other contenders, primarily for the digital space, are: Times Internet, FunAsia, Dream11, Fancode while Sky Sports (UK) and SuperSport (South Africa) will be vying for overseas TV and digital rights.

Last time, Star India had bought the rights for both TV and digital with an overall bid of Rs. 16,347.50 crore but this time the overall base price is more than Rs. 32,000 crores.

This time all the bidders will have to bid separately for each package.

As of Friday, some of the big players who are involved in the bidding process feel that Rs. 45,000 crore is the amount that BCCI can expect which will be two and a half times increase in valuation.

PTI has prepared a ‘ready reckoner’ for IPL media rights

Q: What are the dates for the media rights auction?

A: It is expected to be for two days – June 12th and June 13th.

Q: What is the duration of IPL Media Rights?

A: This period is for five years from 2023-2027.

Q: Number of matches per season?

A: It’s 74 with a provision to go up to 94 in the last 2 seasons.

Q: What is the current valuation of IPL Media Rights?

A: Rs 16,347.50 crore for both TV and digital with Star India.

Q: What are the packages on offer?

A: The TV rights for the Indian subcontinent cost Rs. 49 crores per game.

B: Digital rights for the Indian subcontinent Rs. 33 crores per game.

C: 18-match, non-exclusive digital package of Rs. 11 crores per game.

D: Overseas TV and Digital Rights Rs. 3 crores per game.

Q: What is the overall base price for all packages?

A: The total overall base price for all the four packages is Rs. 32,440 crores.

Break-up: Package A is Rs. 18,130 crore (74x49x5) Package B Rs. 12,210 crore (74x33x5) Package C Rs. 990 cr (18x11x5) Package D Rs. 1110 Cr (74x3x5)

Q: Which major companies are bidding?

A: 10 companies are in the fray: Lupa Systems (Uday Shankar and James Murdoch), Walt Disney (Star), Zee, Viacom18 JV (JV (JV) with Sony (both Indian media and digital rights).

Times Internet, Fan Code, FunAsia, Dream11 (digital rights only).

SuperSport (South Africa) and Sky Sports (UK) are vying for overseas TV and digital rights.

Q: Can a unit bid overall like last time star?

A: No. Each package will be awarded to the highest bidder.

For example, Facebook had submitted the highest digital bid for Rs. 3900 crores in 2017 but Star grabbed the rights with a huge overall bid despite low digital bidding.

Q: Can one unit get two packages?

Answer: Yes, it is possible. Suppose, if Star has the highest bid for India TV rights (Package A) for ‘x’ amount and Sony makes the highest bid for India’s digital rights for ‘y’ amount, then both companies can Challenge each other to a tie-breaker.

Q: Which package can see the toughest competition?

A: Package C, which holds non-exclusive rights for 18 games including the opening game, final, three play-offs and some weekend double-headers.

All the major players (Viacom, Zee, Sony, Star) would like to own this digital package. If a company wins India’s digital rights and loses non-exclusive rights, it loses massive revenue (ads plus subscriptions) for the 18 games that can be accessed on any other platform. Companies will want to buy it to eliminate competition.

Q: What type of auction is being held?

A: Like last time, this will be an e-auction where companies can raise their bids up to Rs. 50 crores in one go. E-auction is transparent but time consuming.

Q: What kind of money does BCCI expect?

A: The BCCI is hoping that their Rs. 32,440 crore overall base price, it could earn another Rs. 12,000 to 12,500 crores which can take the valuation up to Rs. 45,000.

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