


Also, I think there is a polarisation in the market. So yes, the market has clearly stepped up. You have seen Sony’s growth in advertising revenue year-on-year. Will advertisers be willing to pay Rs 15 lakh per 10 seconds? The simple answer is if they want to advertise, they will. If you compare it to that, this is not an insane bid. We are paying Rs 43 crore for BCCI test matches (2012-2018). Look at the price at which ICC rights have gone, or even BCCI rights that too more than five years ago. Now for 10 years, IPL has delivered year-on-year. Don’t compare it with what people paid for IPL 10 years ago, when T20 itself was untested and new. You have to look it in the right context. Many think Rs 54.5 crore per match is not recoverable. We were prepared to lose everything if we didn’t get both. Our bidding strategy was very simple we didn’t want to win just one part. What was your bid strategy? As we have Hotstar and Star Sports both, we were clear that it didn’t make sense for us to take one or the other. In an interview with Gaurav Laghate, Shankar shared his views on how Rs 54.5 crore per match is a rational bid and if he is ready to have a licensing arrangement with a telecom player for digital feed. However, Uday Shankar, chief executive believes it is not an insane bid. Rs 54.5 crore per match is not an insane bid: Star India CEO Uday Shankar The market is abuzz with whether Star India will be able to recover costs and make money after the whopping IPL media rights deal. Also missing from the action were Discovery, Yahoo and ESPN Digital. Also, Star now has all the key assets of cricket and will trump competition.” Significant absentees included ecommerce giant Amazon and microblogging site Twitter. “It's an asset and it will see the on-air sponsorship getting more expensive. N R, director at sports marketing firm Baseline Ventures. “It was a bitter battle between broadcasters and deals like the above cannot be purely based on economics,” said Ramakrishna After evaluation of the technical bids, BAM Tech was disqualified and the financial bids of 13 bidders were taken into consideration. IPL rights put Star India in a very strong position nonetheless.” Out of 24 interested parties that had picked up the tender document for media rights, 14 submitted bids. “Star will be able to negotiate better deals not just from advertisers but also distributors. “This may bring in a significant change in the way sports is being distributed in India,” he said. STAR POWER However, Vinit Karnik, business head at GroupM’s entertainment and sports division ESP Properties, feels that the landscape is changing rapidly and Star’s bid has to be seen in the context of distribution revenues as well. But considering the current market condition and the GDP, it is to be seen if the market is ready to accept such inflation,” said Nandini Dias, chief executive at media agency Lodestar UM India said.
WHY IS IPL 5 RATED HIGHLY TV
“In order to make money, Star India will have to increase ad rates on TV to, say, Rs 15-17 lakh per 10 seconds from Rs 5.75 lakh at present, while on digital, it will have to take it up by at least three times to Rs 2.5-3 per impression. That will translate into higher advertising rates. In simple terms, the value of TV rights has gone up three times and digital by over eight times.

But Star India prevailed by virtue of its global bid exceeding the sum of the individual highest bids in all categories. Transparency and accountability are key factors for investors too.” Incidentally, among the individual bids, incumbent television rights holder, Sony Pictures Networks India (SPN) bid the maximum, Rs 11,050 crore, while Facebook bid Rs 3,900 crore for the digital rights of the league in the subcontinent. “What is important to note is the transparency we got to the whole process.

The winning bid is a little more than what I was expecting, but that is not important here,” he said. ‘TRANSPARENT PROCESS’ BCCI CEO Rahul Johri told ETthat the auction reflected confidence in the board, IPL and cricket overall. In 2015, Star India got the internet and mobile rights for three years for Rs 302.2 crore. In 2009, it reacquired the rights for Rs 8,200 crore after renegotiation until 2017. In 2008, Sony acquired the IPL TV rights for 10 years for $918 million. IPL Advertisement Rates May Go Up The bids were invited for seven categories - India television, India digital, US, Europe, the Middle East, Africa and rest of the world.
