Updated: 7 May 2022
How IPL Media Rights Have Taken An Exponential Rise Over The Years. IPL 2023 Broadcast Channel & Rights. Indian Premier League is the most lucrative cricket league across the globe. Since its inception, way back in 2008, it has garnered huge craze and credibility. In fact, such is the popularity of the IPL that a few foreign players have even called its quits from their national team to feature in this cash-rich cricket league. What the players earn by playing just 3-4 IPL matches, they take the entire year to make that much amount while representing their national team. BCCI makes a lot of money through the IPL Media/Broadcasting rights. Overall, we can say that it is due to the IPL that watching the shortest form of cricket still is a visual delight.
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BCCI makes a lot of money through the participation of different stakeholders. The lion’s share in this comes from media rights. For those unaware, media rights are given to the channel to air the IPL streaming on their sports networks and digital platforms. These broadcasters further sell the live feed to the foreign sports networks for their fans to watch their match from their own country. All-in-all everyone gets involved in this mega event every year.
How IPL Media Rights Have Increased Over The Years
Indian Premier League (IPL) is one of the most sought-after t20 cricket leagues that has made immense progress over the years. It was in the year 2018 that sony pictures network acquired the IPL broadcasting rights for the years 2008-2017 by paying close to 1 billion USD. It was the biggest sports broadcasting deal ever to happen in India.
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Things were evident that this amount would increase by leaps and bounds in the next auction. It panned out the same, and in the next auction for the cycle (2018-2022), star India snatched the IPL broadcasting rights from Sony, paying around 16,500 crores.
How Broadcasters Earn Revenue
You might be anxious to know how any broadcaster can earn profit even after spending so much money? Well, the answer to this lies in the context of the advertisement. The broadcaster’s income comes from the advertisement shown during the live matches. For instance, for every 10-second ad shown during a live match, the broadcaster earns around 10-14 lakhs. This, when summed up, becomes an enormous amount.
There are more than 30 companies that collaborate with the broadcaster to get a space in their ad every year. Through these ads, the companies can create and enhance their brand image, and the broadcaster charges a hefty amount in value for this. Overall, it is a win-win situation for both parties, and this leads to an increase in the overall brand image of the IPL. A recent report suggests that the brand value of the IPL has increased by 7% year-on-year since the pandemic started.
Also, we need to consider the increase in the brand value of teams every year. We have team sponsors and other sponsors such as the title sponsor, official sponsor, umpire partners, etc. An increase in the overall monetary value of these attributes increases the purchasing power of the broadcaster. As a result, they can invest more.
What To Expect From Upcoming Media Rights For IPL 2023-27
The IPL media rights (IPL 2023-27) are due for renewal, which will take place within a month. Seeing the addition of two new teams and the increase in the number of matches, it is expected that the minimum bidding amount will be 25,000 crores for the next 5-year cycle. It would most likely cross the 40,000-crore mark at the close of the bidding. This shows how the broadcasters are willing to spend money like water because they know that IPL’s brand value will increase year on year, and it will help the broadcaster fill their pockets every year.
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BCCI announces the release of Invitation to Tender for Media Rights to the IPL Seasons 2023-2027 through a tender process.
The detailed terms and conditions
The process for submissions of bids, are contained in the “ITT” (‘Invitation to Tender) which will be made available on receipt of payment of a non-refundable fee of INR 25 lakhs. The ITT will be available for purchase till May 10, 2022.
