New Delhi4 hours ago
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The impact of the digital revolution going on in India was also seen on the world’s biggest cricket league IPL. Digital has outperformed traditional TV rights in the league’s media rights auction for the next 5 years. This is the first time in the history of IPL, that more bids have been made for digital rights than for TV rights.
Know how Digital Rights progressed
Disney Star made the highest bid of Rs 23,758 for the TV rights (1st package) for the Indian subcontinent. At the same time, Viacom18, a Reliance-linked company owned by Mukesh Ambani, bought the digital rights (second package) of the Indian subcontinent for Rs 20,500 crore. Even TV rights cost more than digital rights. But, the auction of the third package changed the game.
Before understanding how the game changed, know what was in the third package. This package included non-exclusive digital rights for 98 selected matches for the next 5 seasons. These included the opening match of each season, all play-off matches including the final and the night match of every double header (two-match day). Viacom 18 also bought this package and bid for Rs 3,273 crore for it. In this way, for two packages related to digital rights, Viacom18 bid a total of Rs 23,773 crore. This amount is more than the maximum bid (23,575) made for TV rights.
Why did Viacom 18 buy Package C?
The question may be asked as to why Viacom18 had to buy Package C when Viacom18 acquired the digital rights of the Indian subcontinent by purchasing Package B. After all, he had already got the broadcast rights for all the matches included in Package C.
The answer is that Viacom18 did not want any company to challenge it in the IPL on the digital platform. If Package C had gone to a different company, Viacom18 would have faced competition in selling the advertising rights for those matches. This would have reduced ad revenue as well as ease user acquisition to a rival platform. To avoid this, Viacom 18 made a big bid for Package C.