What the mega IPL auction bids reveal

The colossal sums of money raked in during the Indian Premier League (IPL) media rights e-auction are remarkable, but not surprising. They point to several trends. One, stakeholders in every band of rights have immense faith in the tournament, underlining the enduring power and commercial muscle of Indian cricket, which remains popular as ever; it’s shine undented by the growing penetration of other sports and international leagues. Two, despite global headwinds because of Covid-19 and the Ukraine war, companies trust in the long-term prospects of the Indian economy, and are willing to bat for it.

But the most crucial element of the auction is, perhaps, the third takeaway — the level of interest generated by digital rights.

Before the auction, many assumed that India, for at least a while longer, would continue to remain a broadcast- and cable-driven territory, but the digital rights for 2023-2027 were sold for ₹23,758 crore, a shade higher than the broadcast rights, which went for ₹23,575 crore. This points to a clear shift in the viewership patterns of cricket, which was earlier dominated by television-focussed appointment viewing, as more people watch live matches, reruns, and highlight reels on their laptops and smartphones. In 2008, digital was an almost negligible part of Sony’s bid. In 2017, digital amounted to ₹3,900 crore out of Star’s collective bid of ₹16,346 crore. The big jump this year, when Star has won the broadcast rights and Viacom18 the digital rights, indicates that live sport and streaming are set to begin a long, fruitful partnership.