Since last few years value of cricket and it audience is growing on OTT platforms, so signalling it Board of Control for Cricket in India (BCCI) has been decides to set a more base price for digital media rights as compared to the TV (Television). In Cricket game, Till now the overall base price for digital media rights was equal to TV rights.
The Board of Control for Cricket in India (BCCI) has been decided to decrease the overall base price to INR 45 crore per match for upcoming media rights cycle. Recently in concluded cycle (2018-2023) Disney Star paid BCCI actually INR 61 crore per match (bilateral game).
After waiting 6 months E-auction tender come in release by the BCCI on Wednesday, where BCCI has listed the reduced collective base price for TV+Digital media the value actually as ₹45 crore per match to sell media rights of 2023-2028 cycle including all formats of international and domestic cricket matches.
Earlier in this year’s June the BCCI had already sold its broadcasting TV and digital media rights separately for the Indian Premier League (IPL) 2023 to 2027 cycle. The TV rights owner was Disney Star India while Viacom18 bagged the digital media rights for the India and sub-continents, respectively.
Cricket Media Rights: BCCI’s sale of digital and TV rights separately
This time Interesting fact is that BCCI has been opted to sell out the digital media rights and TV rights separately. Last time it was a combined bidding, saw only three participants competing for last rights cycle which was winner Disney Star, Sony and Reliance.
The reserve price for digital right is higher than TV. For digital media rights sale pricing at Rs 25 crore per match and Rs 20 crore per match for TV rights. Recently in both the IPL and ICC media rights auctions BCCI received a digital valuation higher over TV. The digital medium offers a possibility for new competitors as its future seems more attractive. However, once the advertising is divided between two broadcasters the premium cost recovery becomes more difficult. As we know that IPL 2023 has been showcased cost recovery difficulty because of selling IPL Media Rights separately for TV and digital media.
The e-auction released by BCCI is offering total 88 cricket matches, which including 27 ODIs, 25 tests, and 36 T20Is in the current cycle of five years (2023-2028). Newer auction cycle has been reduced 14 matches that was included in last cycle.
BCCI makes an expectation great deal once again of ₹60 crore per match, If the bidding stopped here they would make ₹5280 crore profit from the auction.
In e-auction it has been stated that the BCCI holds the right to cancel the auction anytime if the per match price value of the game does not reach to Rs 60 crore.