Amazon (AMZN.US) will compete with Reliance Industries Ltd. for the streaming rights to the Super Bowl of cricket. The Super Bowl is one of the world's fastest growing sporting events, attracting 600 million viewers and a brand value of nearly $6 billion.
The two companies are expected to be the two largest bidders at the June 12 auction for the Indian Premier League (Indian Premier League). The auction is likely to attract multiple bidders, bidding separately in different regions for five-year television broadcast and online streaming contracts. The companies are preparing aggressive gaming plans to ensure successful bids, according to people familiar with the matter. Other competitors include Disney Corp (DIS.US) and Sony Corp (SONY.US).
For these two companies competing for the first time, they face more than just the chance to become the number one media giant in a country of 1.4 billion people. The movement enjoys an almost fanatical status in this India. Both Reliance Industries and Amazon are betting that this movement will be the gateway to their ultimate goal: dominance in the increasingly networked Indian consumer market.
Karan Taurani, a media analyst at Elara Capital in Mumbai, said, “This bid move will be a bet on the India story for the next 10 years.”
Amazon has named IPL as one of six global sports franchises it is interested in, and the retail giant has already spent hundreds of millions of dollars on European soccer rights and struck a deal to acquire the rights to broadcast the UEFA Champions League (Champions League) in the U.S. for $1 billion by 2033.
For the first time, the BCCI will auction the broadcast and streaming rights of the IPL separately. There are four contracts up for grabs, covering a wide range of TV and digital rights, as well as the rights to broadcast some key events in the Indian subcontinent and overseas.Taurani said he wouldn't be surprised if the total bidding reaches Rs 600 billion ($7.7 billion), more than three times the Rs 163 billion bid in 2017.
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