The Indian cricket board, BCCI, is anticipating crossing the $1 billion mark in revenue from the sale of TV and digital rights for India’s 88 home games over the next five years. This projection comes as the board prepares to auction the rights for the upcoming cycle, which includes 21 home games against Australia and 18 games against England.
In the previous five-year phase, BCCI earned $944 million from Star India for the rights, with each international game fetching around INR 60 crore for digital and TV platforms. However, this time around, BCCI plans to invite separate bids for TV and digital rights after the massive INR 48,390 crore earnings from the IPL media rights auction. Reliance won the digital bid, while Star secured the TV rights during the IPL auction.
The bidding process for the upcoming rights cycle will be conducted through an e-auction, similar to the IPL media rights auction. This method ensures transparency in price discovery, guaranteeing the best possible price for the board. Experts predict that digital rights for Indian cricket could potentially generate higher revenue compared to TV rights.
While a number of companies have purchased the bid document, three serious bidders for India’s home matches appear to be Disney-Star, Reliance-Viacom, and potentially Zee if the merger with Sony is completed before the auction in September. However, given the fierce competition during the IPL rights auction, it remains unclear how much these entities will stretch their bids.
An executive from one of the broadcasters mentioned that Amazon, which did not bid for IPL rights, might not be as active in the bidding process. Additionally, the upcoming World Cup could impact advertisement revenue if India does not secure the championship title. Considering the recent trend of Tests often concluding within three days in India, broadcasters will cautiously assess their bidding strategies, recognizing that series against Sri Lanka or Afghanistan may not generate as much revenue as matches against England or Australia.
The ad rates for T20 matches are typically higher compared to most Test matches, and companies factor in these aspects when determining their bids. Furthermore, workload management is a crucial consideration, ensuring that popular players participate in a specified number of games in the cycle, in adherence to the NDA clause.
As BCCI prepares to auction the TV and digital rights for the upcoming cricketing cycle, the board expects substantial revenue, potentially surpassing the $1 billion milestone. The separate bids for TV and digital rights will ensure transparency, and experts predict strong interest in the digital rights category. It remains to be seen which bidders will emerge as the frontrunners, with the involvement of various conglomerates and the possibility of additional mergers.
