If you think IPL is only beneficial for Mukesh Ambani’s Viacom18 and Disney + Star, then you may be wrong as those are not the only two of the media going to mixes to benefit from the recent auction of the media rights of the Indian Premier League.
The media channel Sun TV Network and Zee Entertainment Enterprise’s Ltd (ZeeL) might be two such indirect beneficiaries with the currently ended IPL media rights of auctions.
Sun TV Bigger Share Profit from BCCL
Sun TV gets the IPL franchise Sunrisers Hyderabad (SRH). Now, the media network also had got Rs. 175.55 crore in IPL and generates for H1 concluded in September 2021.
After the current auction, the value of IPL just arises by three-time to Rs. 49,000 crore which means the franchises will get bigger than and cut in the values belonging to the Board of Control for Cricket in India (BCCI).
In the IPL franchise that can rain from the brand sponsorships, prize money, ticket, and also the merchandise sales and get a guaranteed 50% revenue share from the central contract of the IPL revenue pool.
According to the financial advisory firm Elara Capital, all IPL teams getting see their capital jump by two times just after the auction, and SRH’s revenue is expected to increase by a compound annual rate of growth of 16.1%.
The most inspiring fact is the media conglomerate Zee Entertainment and Sont also had their eyes that also set on the package D of IPL with the media rights that bundled like Zee has built a strong network of subscribers just outside of India. Now, the current bundle also contained digital and the broadcasting rights like a few international markets.
It’s true, that Zee has lost the mandate to Times Network and Viacom18, Package D had sold for a total price of Rs. 1,058 crores.
The new report by Elara Capital, Zee might actually benefit from losing out on such a mandate this time. The new report just explains, “Star and Hotstar financials suggest that winning the broadcast rights in the previous cycle that does not like to have had a material positive impact on the profitability. It is not conquering the rights on those elevated values, therefore, there is a positive for Zee, in our view.”
Zee-Sony’s earnings also would have been taken such a huge hit because of the hefty content that costs if it had won IPL rights.
Now, Zee5 and Sony LIV are recently dew steps ahead of Viacom18’s Voot in terms of monthly active users.
It shows after winning the digital rights of IPL, the tables might take a turn, and Voot or the Jio platform that might include more subscribers and MAUs.
Recently, both digital platforms SonyLIV and Zee5 would get to bring their A-game to the forefront to win for the consumers and help to maintain the growth of MAU.
The report said, “Zee5 and SonyLIV may have to accomplish immense leg work on the OTT side in terms of user experience, large-scale content, and distribution, in order for getting emerge a winner and scaling up in such a highly fragmented Indian OTT market. We maintain BUY on Zee Entertainment Enterprises propelled by the merger with Sony that should drive potential synergies, both for the TV and digital businesses,”
A big thanks for the source.
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