This Monday, Star India bagged the media rights for TV and digital broadcast for the next 5 years. Under this deal, Star will be paying Rs 16,347.50 crore to broadcast the IPL matches from 2018 to 2022.
There is a reason why the Indian Premier League or IPL is called a cash rich league. Many players get crores of rupees for just 6 weeks of effort, the organisers fill their pockets too but the biggest beneficiary is the Board of Control for Cricket in India (BCCI). This Monday, Star India bagged the media rights for TV and digital broadcast for the next 5 years. Under this deal, Star will be paying Rs 16,347.50 crore to broadcast the IPL matches from 2018 to 2022. This means that the BCCI will earn double the amount than what it was, in half the duration (five years) with earnings of Rs 3,270 crore from IPL media rights per year.
This also means that for every IPL match Star will pay BCCI Rs 55 crore which is even more than what it pays for the international matches (Rs 43 crore). When you closely look at those numbers, you find out that BCCI will be paid Rs 1.3 crore for every over bowled. Yes! You read it right. For every six balls that you will watch in the IPL for the next five years, the cricket board will make this unbelievable amount of money.
— IndianPremierLeague (@IPL) May 21, 2017
So, why is Star ready to pay such a massive amount? Well, IPL is one of the biggest leagues in the world right now with an unbelievable viewership. Star or any other broadcaster that had bid for the rights can easily generate that amount through advertisements. The rise of digital media in India means that online spots might be sold for more amount than TV spots in the near future.
This was the reason that not just Star but other biggies like Sony, Times Internet Limited, Jio, Airtel and Facebook had also bid for the rights. It is expected that Star India’s digital vertical HotStar would be used for live streaming of IPL matches in India. “India, cricket and IPL have changed dramatically since its inception (in 2008) and this bid is a reflection of that,” Star CEO Uday Shankar told mediapersons after the auction