 | « Back to article | Print this article |
'If tech giants like Amazon, Google, Apple and Meta enter the IPL broadcasting arena, it could further revolutionize sports media in India.'
In a shocking development for Indian cricket, for the first time in recent years, the IPL's business enterprise value dropped to $9.9 billion from $11.2 billion last year.
Despite the decline, five-time champions Mumbai Indians have once again emerged as the most valued IPL franchise in 2024, followed by Chennai Super Kings.
According to D & P Advisory's 2024 IPL & WPL Valuation Report: 'Compared to the last edition, the IPL ecosystem value has fallen from INR 92,500 Cr to 82,700 Cr, marking a decrease of around 10.6%. In US dollar terms, this translates to a decline from $11.2 billion to $9.9 billion, representing a decrease of approximately 11.7%.
'This downturn comes despite the league's unyielding allure, which continues to attract audiences across television and digital platforms.'
'The decline in value results from a reassessment of media rights,' the report further adds. 'D & P Advisory's prior report had factored in certain assumptions on the media rights valuation when it gets renewed (post the current cycle), but recent developments in the Media & Entertainment industry and expected reduced competitors / bidders in the next IPL auction have led to a downward revision of the estimates.'
Santosh N, managing partner, D & P Advisory, believes that the fall in the IPL valuation is due to the merger between Star India and Reliance-owned Network18, which will create a monopoly in television and digital broadcasting and limit competition for IPL media rights.
The failed Zee-Sony merger and limited interest from major tech players like Amazon, Meta, and Apple also contribute to the revised estimates.
'We anticipate certain demand-side constraints in the next IPL media rights cycle auction due to a decrease in number of potential bidders. Several significant developments from the past year have led us to revise our media rights value estimates,' Santosh said.
'The days of escalating bid prices driven by fierce competition may be behind us, casting a shadow over the future growth trajectory of IPL's media rights valuation,' Santosh added.
'Despite a substantial growth opportunity for digital platforms, the pivotal question remains: Will market forces generate sufficient competition to drive up the per-match value of IPL rights?'
However, the Women's Premier League has shown some positive signs with the business enterprise value increases to $160 million after the inaugural edition's value of $150 million, marking an increase of almost 8%.
'Compared to the previous edition, the WPL ecosystem's value has increased from Rs 1,250 Cr to Rs 1,350 Cr, marking an 8% rise. In USD terms, this translates from $150 million to $160 million,' the D & P Advisory report pointed out.
'The league has consistently been a thrilling blend of cricket, business, and entertainment, and this year was no different. It continued to captivate audiences across both television and digital platforms,' the report added.
It suggests that BCCI could look to adopt a strategy similar to that of American sports leagues by segmenting and packaging IPL media rights, which it points out has become a global benchmark for enhancing the value of sports media rights, setting a precedent that can significantly benefit the IPL.
'If tech giants like Amazon, Google, Apple, and Meta enter into the IPL broadcasting arena, it could further revolutionize sports media in India, as they leverage their digital infrastructure to enhance viewing experience and innovate on content delivery.'