IPL valuation down to Rs 82,700 crore amid media rights uncertainty
IPL ecosystem valuation has decreased by 10.6% y-o-y due to the shift in market dynamics - including Zee-Sony failed merger, consolidation between Viacom18 and Star India, among others.
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The Indian Premier League (IPL) ecosystem valuation has decreased by 10.6 % - from Rs 92,500 crore last year to Rs 82,700 crore in 2024, following the major developments that impacted the market dynamics, according to the 'Beyond 22 Yards' report by D&P Advisory consulting firm.
In 2022, the valuation stood at Rs 87,00 crore and Rs 45,800 crore in 2020.
"This downturn comes despite the league's unyielding allure, which continues to attract audiences across TV and digital platforms. We anticipate certain demand-side constraints in the next IPL media rights cycle auction due to a decrease in competition. Several significant developments from the past year have led us to revise our media rights value estimates," the report said.
The developments that led to the revision in the media rights estimation includes the failed merger between Zee and Sony. Additionally, the merger of Reliance owned Viacom18 and Disney-owned Star India has created monopolistic control over television and digital broadcasting. Further, the delay in the entry of major tech players such as Amazon, Meta and Apple into the IPL media rights arena exacerbates the situation.
Looking forward, the report added that the potential dearth of vigorous competition could lead to a more conservative approach in the bidding for IPL media rights.
"The days of escalating bid prices driven by fierce competition may be behind, casting a shadow over the future growth trajectory of IPL's media rights valuation," it added.
It is to be noted that Star India and Viacom18 purchased the IPL media rights for Rs 48,390 crore from 2023-27-- marking an increase from the Rs 16,347 crore for the 2018-22 cycle. Apart from these two companies, Sony and Zee were the other bidders for the auction held in June 2022.
It is said that the combined entity between Viacom18 and Star India will create a monopoly in sports broadcasting, as it will have all the major cricket rights- from IPL to the International Cricket Council (ICC) and the Board of Control for Cricket in India (BCCI).
The report further highlighted the changing dynamics in the viewing habits.
Free streaming of IPL and other cricket content indicated a trends where cricket broadcasters may struggle to revert to a monetisation model to retain consumer loyalty on their platforms, it warned.
