IPL Media Rights 2022 | IPL Media Rights Latest News

IPL Media Rights 2022 – IPL is already the costliest media property in India to advertise. An advertiser will have to shell out Rs 14 lakh for airing a 10-second ad during IPL. On the TV distribution front, the IPL gives a huge boost to the overall channel bouquet and allows the rights owner to collect higher subscription revenue from the market. IPL is also a key reason why Disney+ Hotstar is miles ahead of its OTT competitors in the paid subscriber game.

But a sports media executive noted that there is a limit to which IPL ad rates will increase, the bare minimum outlays required for advertising on IPL is so big that only a very few companies can afford it, therefore Buying IPL Media Rights is a very Competitive Scenario.

“Everyone is talking up the numbers for IPL, but the challenge is not what your Excel Sheet models show. The question to ask is if there is so much money in the market for one event. It is easy to talk about Rs 40,000 crore for IPL, but the fact of the matter is that earning Rs 8000 crore every year is not a mean task. The ad inventory will not see a drastic change in the next five years after factoring in the additional matches. At some point, the advertisers will also question the rationale behind increasing the ad rates every year,” the executive from a big media house stated

He also noted that the advertising outlays for IPL Media Rights 2022 are expected to go up as the number of games sees an increase.

“At a very basic level, an advertiser will have to commit an outlay of Rs 30 crore even if they take a bare minimum of four spots of 10 seconds each at Rs 12.5 lakh per 10 seconds in every match for 60 matches. When you make it 94 matches, the same Rs 30 crore investment will become Rs 47 crore over a higher number of matches including afternoon games. How many brands are there in India who can start with a Rs 50 crore investment over six weeks? That is where the problem starts,” he stated.

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IPL Media Rights 2022

Star Sports, (Disney+Hotstar in OTT) has the IPL Media Rights in 2022, The BCCI has put out the tender for the Indian Premier League (IPL) media rights for the next five years (2023-2027). Star Sports had picked up the composite rights for Rs 16,347 crore five years ago. The speculation has already started about the money BCCI may earn this time. Some have estimated it to touch Rs 50,000 crore — a 300 percent rise.

IPL media rights for cycle 2023-27

The BCCI has Recently Come up with the Invitation-To-Tender (ITT) to sell the media rights for the Indian Premier League’s (IPL) 2023-27 broadcast cycle, all the big players – TV18-Viacom, Disney, Sony, Zee, Amazon and another unnamed company (Predicted to be APPLE) – have bought the document.

Categories of the IPL media rights

• Television rights for India subcontinent
• Digital rights
• A collection of 18 matches (The inaugural game, the playoffs games, weekend double-headers, and evening games)
• Content for Rest of the World

How much can the BCCI realistically make from the IPL Media Rights?

What’s on offer is the TV and digital rights of the IPL for the period 2023 to 2027. They include the rights to telecast the IPL in India, and across the world, both on television and across digital platforms. The BCCI has divided the rights into four different buckets and has assigned a base price for each bucket.

• The most lucrative bucket is the television rights for the IPL in India with the base price of Rs 18,130 crore, calculated on the basis of 74 games each for the next five years. The base price set for each game is Rs 90 crore, which is almost double the existing valuation of the property. The BCCI reserves the right to increase the number of games and in such a scenario, the valuation may be revised pro-rata.
• The second bucket includes the digital rights for the property in India and the base price is set at Rs 12,200 crore. The high valuation of digital rights is indicative of the growing popularity of digital mediums and how people’s consumption patterns are fast undergoing a change.
• The third bucket contains the rights for 18 games, including the opener and the four Play-off matches. This is applicable only to streaming services with one single platform given the option of picking up this bundle. This is a new addition, and as BCCI Secretary Jay Shah had tweeted on March 29, 2022, it is an attempt “not only be revenue maximization but also value maximization”. The base price for this bucket has been set at Rs 1,440 crore.
• The fourth bundle is the overseas TV and digital rights, which is expected to fetch the BCCI a minimum of Rs 1,100 crore.

An informed estimate based on past practices suggests that the BCCI should get at least 1.3-1.5 times the base price, which in this case amounts to a total of Rs 45,000-50,000 crore.

IPL Media Rights 2022