IPL Media Rights: ‘Evolving Technology’ Will Surprise Digital Space, Says Arun Dhumal | Cricket News

MUMBAI: BCCI, which is seeking to sell Indian Premier League (IPL) TV and internet media rights over the next five years, concluded a mock auction on Monday for potential bidders. The cricket board achieved this over a four-day period to familiarize bidding players with the electronic bidding process, a relatively new concept to many.
The electronic auction is expected to begin on Sunday, June 12 and conclude over the next 24-48 hours depending on the aggressiveness of the bidding process. Meanwhile, the BCCI is pleased to have taken this decision to avoid calling for a closed offer and to opt for an e-auction.
“Transparency of the bidding process is most crucial here. These days, given the expected value of rights, approaching an exercise of this magnitude by calling for gated bids simply doesn’t work,” he said. BCCI Treasurer Arun Dhumal, who was among the key people responsible for overseeing the bidding process, said YOU.
In 2017, when BCCI last sold the media rights to IPL, the process was completed via a gated offer. Coincidentally however, the months leading up to this bidding process saw former Rajya Sabha member Subramanian Swamy file a Public Interest Litigation (PIL) in the Supreme Court, asking that any right of a such high value cannot be claimed via a gated offer. .
The supreme court, however, had left the decision to the BCCI and five years later, although the cricket board was under no obligation to request an online auction, it did so to make the process as transparent as possible.
“In 2017, we saw an intense bidding process, but remember, the difference between Star’s (now Disney) bid and a combination of individual bids that were received was absolutely negligible. t was a big eye opener. Who knows, if there had been an online auction, the other participants would have raised the stakes. Probably, as far as you know, the whole package would have sold for more than Rs 17,000 crore or more, if there had been an online auction,” says Dhumal.
The hindsight allowed BCCI to go ahead with the electronic auction this time.
In the fray are a dozen potential participants who have picked up the tender documents. As the industry speculates this could end up becoming a battle between the ‘Big Five’ – JVs led by Viacom, Disney-Hotstar, Sony, Zee, Amazon – it’s unclear why the process may not see- not be a surprise competitor tossing the hat into the ring.
For those who followed developments in 2017, Facebook’s eye-popping Rs 3,900 crore offer came out of nowhere.
“With the kind of technological advancements we’ve seen over the past five years, we expect the digital space to be hotly contested. It’s an ever-evolving space that may come as a bit of a surprise. And yet another Sometimes, in a country like ours, TV is not disappearing anywhere in a hurry, so mainstream media will be eager to buy the linear package given the range and last-mile connectivity it has” , says Dhumal.
To refresh the minds of those who have been following these developments, BCCI is offering to sell the rights via an online four-bucket auction – A) tv in india, B) digital in india, VS) a non-exclusive set of 18 digital games in India, D) rest of the world. The base price per game for package A is set at Rs 49 cr per game, B at Rs 33 cr per game, VS at Rs 16 cr, and D at Rs 3 cr.
Industry executives who follow this space say that BCCI’s distribution of these rights has been “excellent” and does not allow any party to walk away with the package without losing a bit of sweat and big bucks.
“My personal view is that any party that opts for Package B will also try to opt for Package C if exclusivity is considered. And that’s where this auction picks up steam. Whatever Either way, one thing is certain: BCCI can expect maximum value from the process given the way it was designed. The packages ensure that no one party will have a stranglehold on the others” , says Dhumal.
Talking about the strategies offered by the bidders, the one common and pleasing factor here is that nothing sells like cricket in India and therefore to multi-billion dollar media conglomerates looking to drive their content strategy at Over the next five years, buying all or part of all cricket this year will be one of the clearest ways to aim for engagement.
“The global OTT game is changing rapidly and there are potential bidders who will once again be looking to use cricket as a primary catalyst to grow their numbers. This is the changing landscape I was talking about. Five years ago when Facebook offered almost Rs 4,000 crore for digital rights alone, this has been an eye opener for the industry. Bidders will have their own perspectives and business models to build on. So it’s hard to say who will come up with what kind of strategy “, Dhumal adds.