Viacom 18 has bagged a 5-year contract with BCCI to telecast the matches both on TV and Digital
Viacom 18, a joint venture between Network 18 (owned by Reliance Industries Limited) and Paramount Global, has strengthened its foothold in sports broadcasting by acquiring media rights for BCCI’s domestic and international matches. This move is a pivotal expansion to its already expanding sports content portfolio.
The deal includes digital and TV broadcasting and is set at INR 67.8 crore for each game. Notably, this pricing surpasses the previous cycle’s cost by nearly INR 7.8 crore, adhering to BCCI’s criteria for a valuation exceeding INR 60 crore.
Throughout this five-year collaboration, Viacom 18, backed by the prowess of Reliance Industries and under the strategic guidance of Uday Shankar, commits INR 5963 crore.
Breaking down the financial specifics:
- TV rights are priced at approximately INR 32.5 crore per match.
- Digital rights come in at around INR 35.3 crore.
- Over the half-decade period, TV rights will sum up to INR 2860 crore.
- Digital and international rights amalgamation is projected to reach INR 3106.4 crore.
Viacom 18 has charted its broadcasting calendar to feature 88 matches until its wrap-up in March 2028. The broadcasting is set to commence with a three-match ODI series against Australia this upcoming September.
This venture signifies Viacom 18’s third collaboration with BCCI. Their prior engagements include procuring digital rights for the IPL and securing rights in both formats for the Women’s Premier League (WPL).
Announcing this partnership on platform X (previously known as Twitter), the BCCI secretary extolled Viacom 18’s commitment, envisioning an enriched experience for cricket enthusiasts. Star India, the previous torchbearer in this domain, received warm gratitude for its instrumental role in propelling Indian cricket to global heights.
Financially, this agreement showcases a 12% ascent from the current market rate. Yet, it trails behind the preceding year’s valuation of INR 78 crore per match. Compared with the combined base bid of INR 45 crore for both packages, the deal exhibits a commendable 50% surge. The arrangement encompasses 25 Test matches, 27 ODIs, and 36 T20Is.
JioCinema Riding High on the IPL wave
Adding to the narrative, in June 2022, Viacom18 made a significant leap by securing the streaming rights for the men’s IPL edition for Rs. 23,758 crores (around $3 billion), and JioCinema streamed the event free on an AVOD model.
In light of this acquisition, a few pivotal metrics from JioCinema’s growth during the IPL seasons are noteworthy:
- JioCinema’s market share rose from around 10% during pre-IPL to 40.26% by IPL 2023.
- During the FIFA World Cup 2022, the platform had already marked its presence with a 9% penetration.
- In comparison, Disney+Hotstar started with a robust 30.24% penetration, which incrementally grew to 33.51% during IPL 2022.
- IPL 2023 was a significant milestone for JioCinema as it onboarded 72% of new users. In contrast, Disney+Hotstar only added 7.43% of new users during IPL 2022.
- On its launch day of IPL 2023, the JioCinema app witnessed a staggering 2.5 crore (25 million) downloads.
- JioCinema’s sessions per user during IPL 2023 soared from 19 to 95, while the average engagement time surged from 117 minutes to 657 minutes. Disney+Hotstar, during IPL 2022, witnessed a progression from 26 to 81 sessions with an engagement time growth from 253 minutes to 640 minutes.
It’s clear from the statistics that JioCinema has reaped substantial benefits from the IPL, significantly impacting Hotstar’s growth trajectory. The loss of IPL rights resulted in a 24% decline in subscribers for Hotstar, now tallying at 40.4 million. Furthermore, their Q3 2023 financial report indicated a setback with a loss of 512 million.
With over nine years of diverse professional experience, Ragul has made significant contributions across various domains, including Media Operations, OTT Technologies, Video Production, Ecommerce, and Social Media.
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