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Amazon reportedly will not bid in Sunday’s auction for streaming rights to the Indian Premier League, which are expected to go for up to $7.7 billion as part of a five-year deal.
The company, which has a $1.1 trillion market cap, was previously expected to win the rights to the multi-week tournament, which the Board of Control for Cricket in India estimates is valued at $7 billion. But the price tag may have been too much for the company, which has already spent around $6.5 billion on its India business.
“Amazon has a great balance sheet, but as a standalone, digital-only bidder, it would’ve had a challenge recouping such a big investment on streaming,” said Mihir Shah, vice president and India head at Media Partners Asia.
Amazon’s departure leaves at least three powerhouses vying for the rights: Disney, Sony, and Mukesh Ambani’s Reliance Industries.
- Disney inherited rights to the league in 2019 when it took over Fox’s Star India.
- Fox paid around $2.1 billion for the rights in 2017.
This year’s process will be different, as the BCCI is auctioning IPL’s broadcast and streaming rights individually for the first time.
Media Minutes
The IPL has grown to 10 teams — whose valuations are growing at a faster rate than NFL and NBA teams — playing 74 matches. When it launched in 2008, it only had eight teams with 14 matches. In 2020, 44% of Indian households watched a live IPL match for a total of 61 billion viewing minutes.
