Mumbai: The Board of Control for Cricket in India (BCCI) has adopted a new approach for the upcoming media rights cycle, setting a higher base price for digital rights than for TV rights. The previous base price of Rs 61 crore per match paid by Disney Star has been reduced to Rs 45 crore per match for this cycle. Notably, it is the first time in cricket history that the base price for digital rights has exceeded that of TV rights.
In a recent move, the BCCI released the e-auction tender for selling rights to all formats of international cricket that India will play at home from September 2023 to March 2028. The collective base price for both TV and digital rights has been set at ₹45 crore per match, indicating a shift in valuation for bilateral cricket compared to previous cycles.
Departing from the previous approach, the BCCI has decided to sell digital and TV rights separately rather than using consolidated bidding. The reserve price for digital rights has been set at ₹25 crore per match, slightly higher than the ₹20 crore per match reserve price for TV rights. Recent IPL and ICC media rights auctions have shown that digital valuation has gained a slight edge over TV rights.
Disney Star's recent actions indicate a shift away from prioritizing TV rights. After losing the digital rights for IPL, they chose to sub-license TV rights to Zee. On the other hand, Sony, which focuses on linear TV for its sports channels, may not be eager to engage in a bidding war against the might of Viacom 18 in the consolidated category. Moreover, the potential merger between Sony and Zee adds further complexity to the situation.
The separate category for digital rights creates opportunities for new players, given that digital platforms are considered the future medium. However, the IPL 2023 highlighted the challenges of recovering premium costs when advertising is split between two broadcasters.
In this rights cycle, the BCCI is offering a total of 88 matches, comprising 25 Tests, 27 ODIs, and 36 T20Is. This is 14 matches fewer than the previous cycle. The BCCI has set a minimum expectation of ₹60 crore per match, which could potentially result in earnings of ₹5280 crore if bidding stops at that level.
