IPL Media Rights Tender – IPL Rights Base Price Questioned? One of the big contender for the IPL Media Rights for the next cycle, Sony Pictures Network (SPN) is not too pleased with the ‘steep’ base price by the BCCI. According to SPN’s lead executive, the BCCI needs to be realistic about the BASE PRICE. The executive in an interview to ET said the ratings for IPL is down & their needs to be a REALITY CHECK by the BCCI: Follow IPL 2022 LIVE Updates with InsideSport.IN
“It’s a very aggressive reserve price and there has to be a reality check. TV viewership of IPL has dropped by over 34% and at a time when the rights are coming up for renewal, ” NP Singh, managing director and CEO of Sony Pictures Networks India (SPN)
So will Sony still bid for IPL Rights?
“The outlay expected, given the reserve price, is very high and we will have to factor in the expected growth of the market as well as possible economic and other risks that the market may see in the next five years,” he said. “So, we will weigh everything before we decide on what to do. ”
IPL Media Rights Tender: Sony Network’s BIG THUMBS DOWN to steep Base Price of IPL Media Rights, Executive says ‘Need Reality Check’
IPL Rights Base Price – What is Putting off SONY? The tendering of the rights will be done via an e-auction module. The board has increased the BASE-PRICE by almost 100% and that is the main area of concern for one of the biggest broadcast house of the country.
The last cycle of rights were sold at 16,347.5. BCCI has doubled the base price to 32,890 crore this time.
IPL Media Rights Tender – What is Putting off SONY? REASON 2
The splitting of digital rights has not gone down well with the broadcaster. The 18 matches in the Digital Rights Package are NON-EXCLUSIVE & that is another concern area according to NP Singh.
“We would have preferred exclusivity of linear and digital both, without these non-exclusive 18 games,” Singh told ET.
- Bundle A – Indian Sub Continent Broadcast: Base price in this category is Rs 49 crore per game. Overall 74 Games base price would be Rs 18,130 crore for five years.
- Bundle B – Digital rights Indian Sub-Continent: Base price for this package is Rs 33 crore per game. For five years, the calculation is Rs 12,210 crore.
- Bundle C: Non Exclusive Package (DIGITAL): The much-debated special package is in Bundle C which comprises 18 games and the reserve price in this cluster is Rs 16 crore per game. At 74 games per season and calculated for five years, the price of this bundle is Rs 1440 crore. This 18 Games in this package will be – Opening Match, 4 Playoff matches & 13 Evening Double Header matches
- Bundle D: Rest of the World Rights (Outside Sub-Continent): Base price for this package is Rs 3 crore per game. The combined value of the reserve price is Rs 1110. crore for five years.
Sony not too happy with the base price of IPL Media Rights, other ready with BIG WAR-CHEST
SPN is one of the contenders for the IPL media rights. The others in fray will be Disney Star, Zee Entertainment Enterprises (ZEE), Viacom18 / TV18, Amazon, and Fancode / Dream11.
Reliance backed Viacom 18 has now emerged as a very serious player. First the network launched its English (Sports18) & Hindi Sports channels (Sports18 Khel) earlier this month. Now in the form of LUPA Investments, huge war chest is ready at their end to fight for the rights.
Viacom 18 LUPA Investents: Bodhi Tree Systems, led by James Murdoch and Uday Shankar, a former head of Walt Disney India, is investing Rs 13,500 crore ($ 1.8 billion) in Viacom18.
The entertainment network owned by billionaire Mukesh Ambani and Viacom Inc. Viacom18 owns and operates the suite of Colors TV channels and OTT platform VOOT. One of the invested entity of the company recently launched their SPORTS CHANNELS – Sports18 & Hindi Sports channels Sports18 Khel.
The partnership aims to “Lead India’s transition to a streaming first media market,” RIL chairman Mukesh Ambani said in the statement.
The companies have not disclosed the shareholding pattern. According to reports, RIL will hold a majority stake, while Bodhi Tree will have close to 40%.
The monies will give much needed cash to Viacom18 to pose a serious challenge to Disney Star & Sony’s hagemony on Cricket Rights.
Is Amazon’s Jeff Bezos joining the Race? Up till now 5 serious players have already bought the tender doucments. Disney Star, TV18-Viacom (Sports-18), Amazon, Zee & Sony have bought the tender documents.
Bezos vs Ambani IPL Rights? For the first time, the rights to broadcast matches on television and to stream them online will be sold separately, opening the door to Amazon.com Inc. and its Prime video service.
“Winning the auction is about prestige and vanity, so Reliance, Amazon and others can be expected to flex their muscles,” said Aditi Shrivastava, co-founder and chief executive officer at digital entertainment startup, Pocket Aces. “It’s a big deal and bidders will surely fight tooth and nail to win the rights.”
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