Viacom 18 Wins Competitive Indian Cricket Media Rights Auction

In a fiercely contested auction held on August 31, 2023, Viacom 18, a media outlet under the Reliance umbrella, emerged victorious in acquiring the media rights for India’s domestic matches and BCCI-hosted domestic tournaments for the next five years. This strategic acquisition complements Viacom 18’s existing digital rights for the Indian Premier League (IPL) and FIFA World Cup rights for India. Let’s delve into the details of this significant development.

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Intense Bidding and Valuation: Viacom 18

The bidding process witnessed a heated competition as Viacom 18 faced off against industry giants like Sony Sports Network and Star Sports. Notably, Star Sports already held TV rights for ICC events and the IPL, leaving Sony as its primary competitor for these highly sought-after rights. The Board of Control for Cricket in India (BCCI) had set a base price of Rs 20 crore per match for TV rights and Rs 25 crore per match for digital rights for the 88 matches scheduled between 2023 and 2028, totaling Rs 3,960 crore. Viacom 18 secured digital rights for approximately Rs 3,101 crore and TV rights for approximately Rs 2,862 crore, resulting in a combined deal valued at approximately Rs 5,963 crore.

Expanding Cricket Portfolio and Effective Date

This acquisition significantly expands Viacom 18’s cricket portfolio, which now includes an array of prestigious cricket properties, including IPL digital rights. It’s worth noting that this portfolio does not encompass IPL linear (TV) rights and ICC events. The media rights obtained by Viacom 18 will come into effect during India’s three-match home series against Australia, set to commence on September 22, 2023, and will remain in force until March 31, 2028.

BCCI’s Perspective and Per Match Value: Viacom 18

Jay Shah, the secretary of BCCI, extended his congratulations to Viacom 18 via Twitter for securing the media rights, emphasizing the continued growth of India Cricket across both linear (TV) and digital platforms. This acquisition also boosts the per-match value of the deal to approximately Rs 67.76 crore, marking a notable increase compared to the previous cycle’s Rs 60 crore per match value.

Revenue Comparison and Insights from Industry Experts: Viacom 18

Despite the higher per-match value, BCCI will receive Rs 175 crore less than the Rs 6,138 crore it earned in the previous cycle, which featured a larger number of games (102 in total). This revenue difference may be attributed to the declining popularity of ODI format matches. T20 matches remain the primary revenue drivers, especially for games against other nations, while marquee Test matches and series against England and Australia tend to attract more advertising revenue.

Industry experts underscore the challenges faced by broadcasters in monetizing Test matches, primarily due to the nature of pitches in India, which often lead to early game conclusions. They highlight the importance of considering viewer fatigue with the abundance of T20 leagues worldwide. Additionally, the experts suggest reevaluating the viability of one-day bilateral series, especially in non-World Cup years, given their limited revenue potential in the current cricket landscape.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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