IPL Media Rights Auction: The e-auction of the media rights of the IPL will begin on Sunday, and if you’re looking for a quick guide to what’s involved, read this article. This article covers the process, which bidders will be in the four buckets, and the impact of the simultaneous e-auction on the value of the media rights. It also explains the rules surrounding the e-auction, including the fact that no bidder was able to place a bid for the UK market.
IPL media rights e-auction begins on Sunday
The IPL media rights e-auction is set to take place on Sunday, June 12, at 11am IST. There is no set end time for the E-auction, so it could go on for a full day or two. The auction will feature four different packages: package A is for TV rights in the Indian subcontinent. Package B is for digital rights in the country. Package C is for international media rights.
The IPL media rights e-auction is divided into four packages: A, B, C, and D. Bids for package A will be placed simultaneously, and bids for package C and D will be placed together. The consolidated bid, won by Star Sports in 2017, is for television and digital rights. The combined base price will double. The e-auction will last for two days.
Unlike the closed-bid auction process, the e-auction will only allow entities with ITTs to participate in the e-auction. However, companies are allowed to file incremental bids. Only the highest bidder will be declared the winner. To make the e-auction more fair, the bidder must file the highest bid for a given match. The names of the bidders will not be released in the process, so rivals won’t bump up the price.
The total number of matches to be broadcasted is now 410. This means that the winning bidder will receive a total of INR 32,890 crore. The IPL also has an incentive for winning individual packages. For example, the winner of Package A will automatically bid higher than the highest bidder for Package B, locking in the competition. This way, the winner of Package A is guaranteed to win the bid for Package B.
IPL media rights were acquired for Rs 16,347 crore in 2017 by Star. BCCI expects that the IPL media rights will fetch at least double that amount this time. The winning bid will be announced on Tuesday, June 14.
Bidders in four buckets for first time
Six major companies are competing to win the IPL media rights. The current rights holders are Disney-Star, Viacom18, Sony Pictures and Zee, while other companies include Times Internet, Fun Asia and Google parent Alphabet. The auction will include TV rights in India, digital rights in India and worldwide, and the world package. The winning bidders will get a portion of the IPL media rights in each category.
The BCCI has divided the IPL media rights auction into four buckets – television in India, digital in India, non-exclusive digital rights in India, and global rights for the entire competition. Each package contains a base price of Rs 49 crore for a non-exclusive set of 18 matches, and five additional rights for playoffs and international rights. The BCCI has stated that no company can bid in more than one bucket at once.
The four buckets are grouped in order of their importance. The first two will be auctioned on one day, while the third and fourth will be auctioned the following day. The auction will take place via an e-auction. The winning company in the first bucket will have an opportunity to bid again for the second and third buckets. There will be a total of four buckets.
With a brand value of $6 billion, the competition for the media rights to IPL is likely to be intense. In the television rights category, Viacom18 is the most likely contender, as IPL would give it scale and heft to its entertainment business. Other bidders in the media rights auction include Disney and Google. DisneyStar will likely push hard to win the rights, though it is not expected to break the bank.
Despite the intense competition, the BCCI expects to secure big numbers for the media rights to IPL. The current bidders will win the media rights for a five-year cycle, starting with the 16th edition of the tournament and running until 2027. So if the media rights auction ends in a big win for the current bidders, there is no telling what will happen in the future.
Value of each bucket
The Indian Premier League has just become the world’s second most valuable sporting league, surpassing the English Premier League and National Basketball Association. This year, there were four buckets of media rights auctioned for the IPL. The final auction of digital and TV rights will be held by the BCCI, and the bidding for the other packages will continue. The BCCI has already sold its document to Disney, Amazon, Sony, and TV18-Viacom, and the demand for IPL media rights in India should be strong.
The BCCI has made it clear that only registered broadcasters will be allowed to bid for TV rights. To qualify for the first bucket, a broadcaster’s net worth must exceed Rs 1000 crore. Then, a bidder must have a net worth of Rs 500 crore or more to qualify for the second bucket. The overall rights auction will help the broadcasters to control the advertising market and retain viewership within their own network.
The BCCI has divided the IPL media rights into four buckets. These buckets are digital, television, and radio rights. Each bucket has a different price and the base price for each package is Rs 25 crore. Each bucket is separate from the others. Bidding parties will bid for a single package or for a package as a whole. Earlier, the auctions were split into two buckets: digital rights for the Indian subcontinent and television rights for the rest of the world.
Bidding for the media rights for the Indian Premier League has been brisk so far. The total value of media rights for the IPL has already passed the Rs 46,000 mark and could cross the Rs 50,000-mark if package ‘C’ is successfully bid upon. It is expected that the bidder that won Package ‘B’ for digital rights will not allow the other bucket to go.
Until now, five big companies have already bought media rights for the IPL. The BCCI has invited the biggest names in the media industry to bid for the media rights. In the past auction, Star India won the media rights for the IPL for a record INR 16,347.5 crore or US$ 2.55 billion. This time, Apple has also expressed interest in bidding for the media rights.
Impact of simultaneous e-auction on value of each bucket
The BCCI, which owns the rights to media properties, believes that the impact of a simultaneous e-auction on the value of each bucket of media rights will be a net positive. A veteran media executive says that the process will benefit both bidders and BCCI. In closed bidding, bidders tend to bid conservatively and hope that their bids will come up high. By contrast, in an e-auction, bidders are more willing to risk putting extra money into the process. Aside from transparency, the e-auction process increases buyer confidence.
The BCCI has weighed in favor of the e-auction process for IPL media rights. Experts believe that the cash-rich league will benefit from the competition, thereby raising the value of each bucket. However, the simultaneous e-auction process also has a potential disadvantage – it can be copied by other bidders. Therefore, the BCCI may be right in its decision to sell IPL media rights through the e-auction process.