For example, the ZEE-Sony merger is still ongoing, while Disney is apparently considering strategic options for its India business.Īccording to Taurani, the majority of these businesses will now be consolidated. The base price for the four-year rights cycle stands at $1.44 billion.Įxperts say small players may seek bilateral broadcasting rights as the sector consolidates. BCCI raked in Rs 48,390 crore by splitting digital and TV rights for IPL's 2023-27 cycle, and Disney Star has paid $3 billion to retain the ICC media rights for the Indian market. To add some context, broadcasters and platforms bid aggressively to get the IPL and ICC media rights. These factors also impact the value of the media rights.” IPL is played in the T20 format whereas the BCCI bilaterals include Test matches along with ODIs and T20s. Those who have already bid for IPL and ICC media rights have already committed a good amount of capital and they need to focus on recovering those investments,” said a senior analyst.Īmong other factors, he said was the format. “The BCCI was long due to come up for their auctions for bilaterals. It's important to note that players who bid for the IPL and ICC media rights may have already exhausted their budgets. Other experts say that apart from unfavourable market conditions, the delay from BCCI’s end is likely to have an additional impact on the value. The macro-environment has become tough now.” “During IPL, viewership might have done well both on TV and digital but in terms of monetization it was very tough. The macro-environment has changed post IPL and the ICC media rights auctions. Advertising from a festive standpoint might grow, at least for the next one year it will be facing challenges both for TV and digital.”Ī senior analyst on the condition of anonymity shared that the demand-supply equation has become worse. “They will still take two or three more quarters to come back on track. Taurani believes these macro concerns are here to stay. New-age companies are slashing ad spends because of the pressure to focus on profitability on account of valuations falling globally and macro concerns. In some manner, all advertising channels, whether TV or digital, are under pressure.” "The kind of premium paid in the previous cycle was based on the assumption that advertising would always be strong, but what has happened in the last two years has completely reversed it because nobody expected such a sluggish environment in advertising. He stated that at the IPL media rights auction last year, the pricing increased dramatically and unexpectedly. According to Karan Taurani, Senior VP, Elara Capital, the cricket media rights auction has shifted from being a seller's market to a buyer's market.
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