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The bid, however, is lower by ₹175 crore than the ₹6,138 crore Disney Star had paid for the previous fiveyear cycle, a sign that the value of bilateral cricket will be under pressure due to declining viewer interest in the Test and ODI formats.
It translates to a payout of ₹67.76 crore per match, about 10% higher than in the previous cycle that had more matches.
BCCI secretary Jay Shah said Thursday’s e-auction has propelled BCCI into the upper echelons of permatch media rights valuation. “Throughout this process, we have steadfastly upheld the principles of transparency and fairness, ensuring that all stakeholders are treated equitably,” he said.
Sources close to the development said Viacom18 bid ₹3,101 crore for digital rights and ₹2,862 crore for TV rights, with the difference between the two sets of rights being a mere ₹239 crore.They added that Sony Pictures Networks India (SPNI) was the only other bidder in the fray as Disney Star sat out of the e-auction, having already committed $4.5 billion for Indian Premier League (IPL) TV rights and International Cricket Council (ICC) digital rights.One of the sources said Sony’s bid of ₹5,863 crore was ₹100 crore lower than Viacom18’s bid. While the general feeling was that Sony would bid aggressively for TV while Viacom18 would go big on digital, both parties bid aggressively for TV and digital rights.In a statement, SPNI MD and CEO NP Singh said that the company’s disciplined bid was grounded in market forecasts and a long-term growth strategy.
“Disney Star didn’t participate in the e-auction as the acquisition of ICC rights for $3 billion has limited its ability to participate in bidding for other properties,” said a veteran media executive.
Media watchers say Disney Star has overpaid for the ICC rights even after accounting for the sub-licensing deal that the company later inked with Zee Entertainment for the TV rights.
“What was more surprising is the fact that Viacom18 bid aggressively for both the TV and the digital rights. They have publicly stated that they are focused on digital rights for cricket properties,” the executive added.
Explaining Viacom18’s aggressive bidding for TV rights, an industry watcher said that the company has killed two birds with one stone.
The loss of BCCI TV rights will impact Disney Star’s subscription revenue, as the company was booking an estimated subscription revenue of ₹2,500 crore from cricket and sports.
With the loss of BCCI rights and the fact that it will not have the ICC TV rights from next year, Disney Star will be over-dependent on the IPL, which takes place for only two months in a year, to mop up subscription revenue from TV distributors like Tata Play and Hathway Digital.
Secondly, Viacom18 has prevented Sony, which is in the process of merging with Zee Entertainment, from strengthening its position in the TV subscription market, as a combination of ICC and BCCI TV rights would have enabled the combined Sony-Zee entity to dial up their TV subscription revenue significantly.
Media Partners Asia VP Mihir Shah said BCCI media rights are vital for media players because they ensure year-round audience engagement and protect against the seasonality of other major tournaments like the IPL and even ICC events, which may not always have prime-time slots.
“Winning TV and digital rights for BCCI allows Viacom18 to offer the best of both mediums in terms of reach and targeting,” he added.
Kurate Digital senior partner Uday Sodhi said the big trend coming out of the sale of the BCCI rights is the steady change in cricket viewing habits among consumers.
“The value of T20 leagues like the IPL is increasing, and the value of Test matches is reducing. This will have a long-term impact on cricket as a game and the finances of the cricket boards. Cricket is changing, and it’s showing in the value of the rights that broadcasters are paying for it,” he added.
The BCCI had set a base price of ₹45 crore per match, with the digital rights base price of ₹25 crore per match being more than the TV rights base of ₹20 crore per match. The board had reserved the right to call for a rebid in case the final consolidated bid went below ₹61 crore per match.
