COVID-19 Impact: NZCB fails to seal media agreement with Star India
Star India had signed a deal with New Zealand Cricket Board for over $35million in 2017 for three years
Star India and New Zealand Cricket Board (NZCB) have failed to seal the media agreement which was up for renewal this year.
A source close to the development has confirmed the news to exchange4media that the deal didn’t close due to valuation issues. NZCB had signed up the deal with Star India for over $35m in 2017 for three years and now they were looking to renew it at similar rates. “Given the current market scenario and COVID-19 related business implications, Star India has refused to renew the existing deal,” informed the source.
NZCB joins the long list of boards that have been struggling to sign media deals in the lucrative Indian market. As per media reports, boards like Pakistan Cricket Board, Sri Lanka Cricket Board and West Indies Cricket Board are finding it difficult to renew their contract or are not being able to find a broadcast partner in India.
We sent an official email to Star India, but did not receive any response till the time of filing of this copy.
An external source in privy to the details of the conversations said, "India has become a very tough advertising market for sports media rights outside of IPL, and this has been further significantly impacted by COVID-19. In addition, the broadcasting industry is in the midst of the new tariff order from TRAI which has also hurt broadcasters’ subscription revenue."
"A few years ago, the Indian sports broadcasting market was very competitive with multiple players, but now it is left with two mainstream broadcasters, whose outlook on monetization is very modest. There will be a substantial downward trend in media rights values across the board. Rates from earlier deals cannot be used as a benchmark to negotiate current deals, as the entire ecosystem has changed and cricket boards need to come to terms with this," said the source.
As per media reports, the Board of Control for Cricket in India (BCCI), England and Wales Cricket Board (ECB) and Cricket Australia (CA) are the boards that have broadcast deals in India. In 2018, Star Sports won the media rights of BCCI for five years for Rs 6,138 crore whereas ECB has a five year deal with Sony Pictures Network India. Cricket Australia too has a six year deal (Television) with SPNI.
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