IPL media rights: Does the BCCI have a Plan B?

The Board of Control for Cricket in India (BCCI) is facing criticism for its reluctance to seek competitive bidding for the upcoming Indian Premier League (IPL) and home bilateral media rights tender. With just six months remaining before the 2023-27 rights cycle commences, stakeholders are worried that the lack of serious competitors could hinder an accurate valuation of the league's worth and stifle market-driven competition.

This sentiment was highlighted by Uday Shankar, vice-chairman of JioStar, who expressed concern during the ET World Leaders Forum. Shankar pointed out that while the value of sports has risen, the ability to monetize these rights has not kept pace. A major issue is the significant increase in rights costs, but the capacity to monetize them has not necessarily followed suit.

The absence of a Plan B for Indian cricket is alarming, as JioStar is a given bidder due to its strong connection to cricket consumption. However, the BCCI's inability to attract more participants into the bidding process is baffling. YouTube and Netflix, known for their aggressive engagement with sports in the West, could potentially be valuable players in the Indian market as well.

YouTube's recent seven-year deal for exclusive US distribution of NFL Sunday Ticket, worth $2 billion per season, demonstrates the trend of treating sports as part of a broader pay-TV and subscription ecosystem. Meanwhile, Netflix's co-CEO Ted Sarandos has expressed interest in live sports, including cricket, but has stated that the company doesn't intend to become a conventional full-season sports broadcaster.

For the IPL to reach its full economic potential, it must be marketed effectively to a wide range of media, technology, and streaming platforms worldwide. The BCCI needs to develop a genuine marketing strategy that showcases the IPL's value to these potential bidders.