IPL 2022 started last week with the King of IPL-CSK playing against KKR. Along with the cricket fans, investors in CSK are enthralled, as they are seeing their investment rise with CSK share price immensely.
IPL is an advertising property like no other
Cricket is a religion in India and IPL happens to be holy grail. For the next 2 months for which IPL will be on, it will be hottest and most watched league in the world. This makes it the best advertisement property for brands looking to create a global impact.
In 2017, Star India had won the broadcasting rights for IPL for Rs 16,348 crore for 5 years. This time, the BCCI is eyeing a windfall of Rs 50,000 crore.
Impact on CSK Share Price:
Share of Broadcasting rights revenue forms the largest component for topline for IPL teams. A 3X increase in broadcasting will make for an excellent revenue boost. In anticipation of this, CSK share price is already trending up for the last 3 months, going from 170 to 220/sh! Industry veterans are expecting this to cross 300Rs/sh within a year!
IPL Media Rights Auction
BCCI on Tuesday issued the tender document for media rights for its marquee T20 league Indian Premier League (IPL) for seasons 2023-27 and said e-auction for it would start from June 12..
In a series of tweet, BCCI Secretary Jay Shah said the tender document is now available for purchase
“The detailed terms and conditions governing the tender process including eligibility requirements, process for submissions of bids, proposed media rights packages, and obligations, etc. are contained in the ‘Invitation to Tender’ (ITT) which will be made available on receipt of payment of non-refundable fee of Rs 25 lakh plus any applicable Goods and Services Tax,” the BCCI said in a release.
What’s unique about this Auction?
This year BCCI plans to auction live streaming and broadcasting rights separtely. Separating broadcast rights and digital streaming opens the door to new bidders. Amazon, with its Prime video service, can face off in the e-auction against Reliance’s Jio telecom subsidiary, which has nearly half a billion subscribers in India. But in the past, their will be no consolidated bidding will be allowed.
Though Amazon and Reliance are the most ambitious, they join a horde of competitors, including the Walt Disney Co.-owned Star India and its Disney Hotstar streaming service. Also in the mix is a newly-created media behemoth that combines Sony Pictures and India’s Zee Entertainment Enterprises.
We are eagerly eyeing this space to see how all of this pans out. Latest developments are posted on our Twitter account.
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