IPL digital rights valuation grows by 672% in two years

In 2015, Star India had won the digital rights for the IPL for around Rs 303 crore for a period of three years. This time around, the highest bid for digital rights was a whopping Rs 3900 crore for a period of five years

e4m by Abhinn Shreshtha
Updated: Sep 5, 2017 5:17 PM

Despite a bid as high as Rs 3,900 crore for the digital rights for IPL, Facebook India, on Monday noon, returned disappointed after losing the bid to Star India who won all media rights for the IPL after tabling the highest consolidated bid amount of Rs 16,347.50 crore.

As expected, digital rights for the event were hotly contested with the likes of Star India, Facebook, Reliance Jio, Times Internet and Airtel all in the fray.

With so many established players competing for the rights, industry observers had expected a huge increase in the price of the digital rights. The digital rights this time were set for a period of five years, beginning in 2018 and lasting through 2022.

Star India had paid around Rs 101 crore per annum back in 2015, which translates to Rs 303 crore for a period of three years back in 2015. Star India had valued the digital rights at Rs 1443 crore or Rs 288.6 crore per annum. Comparing this valuation to what the winning bid for just digital rights was in 2015, we can see that Star India’s valuation of the digital rights increased by 185.7 per cent or nearly three times.

As per information provided by the BCCI, the highest bid amount for digital rights was by Facebook, whose Rs 3,900 crore equated to Rs 780 crore per annum. This translates to a mind-boggling increase over 2015’s winning bid amount of nearly 672 per cent.

The next highest bid was by Airtel which bid Rs 3280 crore or Rs 656 crore per annum, followed by Reliance Jio, which offered Rs 3075.72 crore or Rs 615.144 crore per annum.

Times Internet tabled a bid of Rs 1787.50 crore or Rs 357.5 crore per year.

Star India’s online property Hotstar has seen tremendous success due to IPL and industry analysts expect this to continue going forward.

For example, Thomas Abraham, Editorial Director at Sportz Network Ltd said, “Digital is a new space so growth is higher. You have to look at all the other things they have built on the back of IPL before deciding on the value that they have derived from the IPL.”

Sandeep Goyal, Founder and Chairman of Mogae Media opined, “This (IPL digital rights win) will move Hotstar to the undisputed leadership space in the OTT domain.”

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