ICC TV rights deal: A foothold for ZEEL in cricket, a lever for Disney to focus on digital

The deal also signifies that the days of a single broadcaster owning all major cricketing rights are gone, say experts

e4m by Javed Farooqui
Published: Aug 31, 2022 9:08 AM  | 6 min read
zee star

Disney Star's strategic licensing agreement with Zee Entertainment Enterprises Limited (ZEEL) for exclusive TV rights of ICC men’s events from 2024-27 has taken most people in the media industry by surprise. After all, Disney Star won the ICC media rights only last week, and now, within three days, has sold a major portion of the rights to its rival ZEEL.

The Disney-Zee deal is a departure from the old strategy of buying sports media rights and building a walled garden around them to ensure exclusivity, which helped the rights owner to command high advertising rates.

Even though the financial details of the deals are under wraps, speculation is rife that ZEEL would have committed anywhere between $1.5 billion and $1.8 billion for the TV rights. The deal, which will come into effect in 2024, is likely to be funded through the cash infusion that will come from Sony Corp post the merger with Sony Pictures Networks India (SPNI), industry sources say.

With this deal, ZEEL has also announced its big bang entry into sports broadcasting after securing the media rights to UAE-based International League T20. Experts believe that the decision to acquire ICC TV rights would have been taken in tandem with SPNI. However, the two companies continue to operate separately since the regulatory approvals for the merger are still awaited.

The deal also signifies that the days of a single broadcaster owning all the major cricketing rights are gone. In the last couple of months, Disney Star had bought IPL, ICC, and Cricket Australia rights for a cumulative value of Rs 50,000 crore. Even if the payout for the rights is spread over four to five years, the investment is too much for a single broadcaster to manage.

By retaining the ICC digital rights for India, Disney Star has made it amply clear that its focus will be on scaling up the digital business. The Walt Disney Company has been shutting down its linear channels internationally to focus on expanding Disney+ globally. This strategy doesn't apply to India where the linear TV business is still going strong even as the digital growth is leapfrogging.

ITW Consulting MD Bhairav Shanth said ZEEL becomes a new player in the space with the ICC TV rights. He also believes that the increase in the number of broadcasters for different events means that viewers will have to access different services for their sports. This, he said, will ultimately continue to drive up the value of the sports media landscape.

With the majority of the cricketing properties getting decided this year, broadcasters will have to look at alternative sports to build their sports business. "Also, as cricket properties are limited, broadcasters might now look at other, non-cricket sports properties to distinguish themselves. This means more attention to the production and promotion of these sports, ultimately benefiting sports in the country as a whole. Moreover, fans will also have more easy access to them," Shanth said.

According to him, the $10-12 billion content investment in cricket over the next 5 years is to establish the platform to serve cricket’s digital-first audience and find new ways to engage and then monetise them. "Think of this spend as a spend on a highway network on which Indian sport’s broadcast commerce will run over the next decade."

Sandeep Goyal, MD, Rediffusion, says the deal is good for both the networks. “Star can now concentrate on the selling of IPL while Zee can put its fullest might behind the ICC offering. The arrangement is a bit unusual but cooperation is the new norm across industries,” he explained.

A veteran media professional with experience in running the sports broadcasting business in the past said that the ICC TV deal with Disney will give ZEEL a foothold in cricket. He also said that the deal will provide a lever for Disney to continue its strategic focus on digital.

 

Sports broadcasting will continue to be a three-horse race

The sports broadcasting genre will remain a three-horse race since Sony and Zee are in the process of getting merged. Disney Star will have IPL TV rights, ICC digital rights, Cricket Australia media rights, and Cricket South Africa media rights along with other non-cricketing properties. Sony-Zee will have ICC TV rights, and England Cricket Board (ECB) media rights besides other sporting properties. Apart from the IPL digital rights, Viacom18 will have a strong presence in football.

It is pertinent to note that Zee and Sony had lost out on both the IPL and the ICC media rights. By picking up the ICC TV rights, the merged entity will boast of a tentpole property that has been missing from the SPNI portfolio so far. Although ZEEL has re-entered the sports business, it doesn't have a sports channel. SPNI, though, has multiple sports channels in SD and HD.

Triplecom Media iTap Founder-CEO Kunal Dasgupta said that the escalation in rights cost has meant that a single broadcaster cannot digest all three rights. He also said that the ICC is an overpriced property when looked at from the lens of the lesser number of India matches. He also said that Disney Star will strengthen its balancesheet due to this strategic partnership.

"Sports rights will get divided between the three broadcasters. This is how it should be anyway, otherwise it's difficult to digest all the rights," he stated.

Speaking about the monetisation potential of the ICC rights, an industry source pointed out that the lack of exclusivity (TV and digital rights going to different players) will prove to be a big challenge for both Disney and Zee. "They also have to share the feeds with Prasar Bharati, which kills exclusivity and impinges monetisation," the source said.

Another media professional with experience in sports broadcasting said that the two parties must have agreed on the deal beforehand. "It has to be a prior agreement. It cannot be done after getting the media rights," the media professional said.

He also said that the swag of being the home of cricket is a thing of the past. He noted that sports media rights globally are getting fragmented and the global trend is now getting replicated in India. Disney, he said, has also sent out a signal that they want to bolster the digital business in a major way.

 

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ABP’s Shobhna Yadav joins Zee News

Yadav used to host the evening prime time show on ABP News

By Ruhail Amin | Mar 27, 2023 10:06 PM   |   1 min read

Shobna

ABP’s senior news anchor Shobhana Yadav has quit and joined Zee News as senior news anchor. 

Yadav used to host the evening prime time show on ABP News. Rajnish Ahuja, Editor, Zee News confirmed this news to e4m.

Along with news anchoring, Shobhana Yadav is known for being a succesful film producer. Recently, the film 'Dasvin' produced by her was well received by the audience. Renowned Hindi cinema actor Abhishek Bachchan has played an important role in this fim.

Yadav started her career with India TV in 2003. She has also produced a bollywood film ‘Dear Maya’ in  2017 in which Manisha Koirala played the lead role.

The popular bollywood film ‘Batla House’ is based on the real life story of Shobhna Yadav and her husband Sanjeev Kumar Yadav who is a nine time gallantry award recipient.

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NDTV Board appoints UK Sinha and Dipali Goenka as Independent Directors

Sinha has served as the Chairman of Securities and Exchange Board of India (SEBI)

By exchange4media Staff | Mar 27, 2023 9:20 PM   |   1 min read

NDTV

U.K. Sinha and Dipali Goenka have been appointed Independent Directors of NDTV for a period of two years effective March 27, 2023, based on the recommendations of the Nomination and Remuneration Committee, and subject to the approval of shareholders and Ministry of Information and Broadcasting. U.K. Sinha has also been designated as Non-Executive Chairperson of NDTV. 

Sinha has served as the Chairman of Securities and Exchange Board of India (SEBI) between 2011 and 2017. Under his stewardship, SEBI is credited with having brought in significant regulatory amendments in areas such as Takeover Code, Foreign Portfolio Investors and Alternate Investment Funds.

Goenka is the Chief Executive Officer and Managing Director of Welspun India Limited. 

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ZEE Media Corporation to launch 3 channels in this election year

As per reports, the three channels were Zee News HD, and two others in Kannada and Telugu

By exchange4media Staff | Mar 27, 2023 4:08 PM   |   1 min read

Zee news

ZEE Media Corporation will be launching three channels, keeping in mind the elections scheduled in three states this year and the general elections set for next year.

As per media reports, the three channels were Zee News HD, and two others in Kannada and Telugu.

ZEE News has recently unveiled a new look, with a vibrant colour pallet and clear visuals.

According to the channel, the new design has been curated from the findings of a market research that provided insights into audience preference.

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MIB names MSOs who have not complied with TRAI’s interconnection regulation

The ministry has advised broadcasters to enter into fresh agreements with only those MSOs who have complied with the TRAI norms

By exchange4media Staff | Mar 24, 2023 9:59 AM   |   1 min read

MIB

The Ministry of Information and Broadcasting (MIB) has released a list of multi-system operators (MSOs) as per the status of their compliance to TRAI's interconnection regulation.

The ministry has advised broadcasters to enter into fresh interconnection or renewal agreements with only those MSOs who have complied with the above.

The interconnection regulation requires TV channel distributors to audit its subscriber management system, conditional access system and other related systems by an auditor in order to verify their monthly subscription reports.

As per a statement issued by MIB, "Many MSOs have failed to get registered on Digial India MIB portal". The MSOs have also not submitted the other required details, it says.

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Removal of Star from some cable operator base packages to have no impact: Elara Capital

DEN Networks, Hathway Cable & Datacom and GTPL Hathway have informed their customers that they will remove Star Sports and the network's other channels from April 1

By exchange4media Staff | Mar 23, 2023 9:51 AM   |   1 min read

TV

Ahead of IPL 2023, Multi-System Operators DEN Networks, Hathway Cable & Datacom and GTPL Hathway have reportedly informed their subscribers that they will be removing Star channels, including Star Sports from their basic packages from April 1.

It has to be noted that Star owns the TV rights to IPL and Reliance Industries’ Viacom18 has the digital rights. RIL also happens to own DEN and Hathway and has a 28% stake in GTPL Hathway.

The development is of significance since Viacom18 will stream the upcoming season of IPL on JioCinema for free.

According to Elara Capital's Karan Taurani, the removal of Star channels from the base package ahead of the IPL season may have a neutral impact in the worst case scenario. The move can also benefit Star if subscribers who want the television experience opts for a la carte or individual channels to watch IPL.

He also noted that post NTO implementation, only 8% of the customers moved to a la carte as India consumers are value centric. "92% of the consumers will still consume bouquet-based offering."

The move to remove Star channels from the basic packages may not have any big negative impact, says Taurani. "This is one genre which has stood out vs others which have reported a decline (especially Hindi GEC and movies) in the post covid era."

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Prativa Mohapatra joins enba jury panel

Mohapatra is the Vice President & Managing Director of Adobe India

By exchange4media Staff | Mar 22, 2023 8:40 AM   |   1 min read

Prativa Mohapatra

Prativa Mohapatra, Vice President & Managing Director at Adobe India, has joined the exchange4media News Broadcasting Awards (enba) jury panel. Mohapatra’s career spans over 25 years in the technology industry. She currently leads Adobe’s India business across Adobe Experience Cloud, Adobe Creative Cloud and Adobe Document Cloud, reporting to Simon Tate, Adobe’s president for Asia Pacific (APAC).

Before Adobe, Mohapatra was with tech firm IBM, where she served as Vice President of Digital Sales for APAC. Prior to that, she led sales for IBM India and South Asia where she was responsible for driving revenue for the company’s portfolio of solutions and services. She started her career at the professional services firm PwC India and has a wide range of experience, including leading business transformations, scaling teams to meet hyper growth and evangelising Artificial Intelligence technology with customers.

enba was formulated by the exchange4media group in 2008 with the objective of recognizing the best in television news. The awards honour industry leaders who are responsible for shaping the future of television broadcasting in India. This year, enba is in its 15th edition. The grand jury will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

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WION to launch on UK’s DTT platform Freeview

The channel will be available from March 22, 2023

By exchange4media Staff | Mar 21, 2023 3:56 PM   |   2 min read

wion

WION, World Is One will launch on the UK’s leading platform – Freeview via IP and using the most innovative FAST SSAI on 22nd March 2023. The channel expanded its global footprint and increased its reach by 15 mn Freeview Connect households in the UK. Viewers in the UK can tune in to the channel on Channel #287 via Freeview, starting March 22, 2023.

Emphasising the global partnership and outreach, Madhu Soman, Chief Business Officer of WION, said, “WION has always been open to exploring new platforms. Taking into consideration the fact that Freeview replaced the old analogue TV service accessibility to a widespread audience in the UK, it is a great opportunity for the channel to present global stories from an Indian perspective. This global move also encourages us to further boost timely and fast-paced news reportage with gripping visuals and strong content, backed by research and investigation.”

Anindya Khare, Marketing Head of Zee Media Corporation Limited, further added, “The United Kingdom television viewing market is expected to flourish because of some major factors like emerging economies' rapid economic development, demand for smart televisions, the growing over-the-top platform market etc. We strongly believe that the UK market has a lot of potential for the channel to introduce new customised programme packaging to the audience, engage stakeholders through strategised communication and build on a high preference ratio.

Through a strategised approach, we also look forward to being consistent in launching interesting programmes on WION in markets like US, India, UK etc. This allows our glocalised viewers and readers to understand the impact of major global events from a uniquely Indian perspective.”

“We are thrilled to launch WION via Freeview Connect and expand Freeview news offering with the leading news channel from India and also being able to monetise it using the Synapse FAST SSAI”, said Tanya Kronfli, Managing Director of Global Distribution Services, specialising on delivery and digital Monetisation of TV content via Freeview Connect.

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