IPL is synonymous with the format in which cricket is now enjoyed globally, and it is set to introduce additional dynamics with Jeff Bezos and Mukesh Ambani vying for their entry. The Governing Council of IPL, through BCCI, has issued the Invitation To Tender (“ITT”) for bidders to acquire Broadcasting Rights for FY 2023-27 IPL seasons, separating the television and Broadcast right for the first time. There is a lot at stake commercially and legally.
BROADCASTING RIGHTS OR MEDIA RIGHTS
For the uninitiated, Broadcasting Rights or Media Rights entail disseminating the content through any satellite channel, available to a Broadcasting Organization for 25 years.
Section 37 of the Copyright Act (“the Act”) sets out acts that may be considered an infringement of these rights, which include re-broadcast of the broadcast, causing the broadcast to be heard or seen by the public on payment of charges. However, Section 39 of the Act separates acts done with a bonafide intent of teaching or for research purposes from infringement.
Broadcasting Rights are additionally governed by the Broadcasting Agreement between the broadcasting agency and the producer. Although there isn’t a standard format prescribed for this, a broadcasting agreement would include grant, term, and exclusivity of the License along with the rights and obligations and legal handling and commercial implications of the License.
IPL BROADCAST RIGHTS
FY 2018-22 (4 years) Broadcast Rights of IPL were with Star India for INR 16,348 crore.
As the possibility of the baton moving from Star India is impending, the two billionaires are keen to secure the share, which ultimately is about engulfing the market of Indian viewership along with e-commerce dominance for which the battle is ongoing.
Eligibility criteria for the bid are set out in ITT and made available for sale at a non-refundable fee of INR 25 Lakhs + GST. But it’s emphasized that a mere sale of ITT would not guarantee the participation of the interested bidder.
Currently, Disney+Hotstar is the only OTT platform streaming live IPL matches in India. BCCI is expecting an earning of INR 50,000 Cr. with ZEE-SONY, Amazon, Meta, and others participating in an aggress bid.
EXISTING SPORTS TELECAST
Mukesh Ambani has prior experience in broadcasting rights for sports through Italy’s football league – Serie A, and also owns IPL’s renowned team– Mumbai Indians, under Reliance Industries Limited.
Conversely, Jeff Bezos has a live sports streaming facility available on Amazon’s Prime Video and acquired the exclusive rights for streaming Thursday Night Football games. Amazon’s partnership with the New Zealand Cricket Board permits Prime Video to stream all cricket matches in New Zealand, which is also available for viewers in India. Securing the IPL rights in India would be a win for Amazon, leading to a good synergy with the New Zealand streaming rights.
Everyone will eagerly watch this e-auction, beginning on June 12, 2022.
INFORMATION TECHNOLOGY (INTERMEDIARY GUIDELINES AND DIGITAL MEDIA ETHICS CODE) RULES, 2021 (“THE RULES”)
The Rules will not apply to the IPL telecast since it shall not qualify as online curated content, i.e., as any curated catalogue of audio-visual content, other than news and current affairs content, which is owned by, licensed to, or contracted to be transmitted by a publisher, and made available on-demand, including but not limited through subscription, over the internet or computer networks, and includes films, audio-visual programmes, documentaries, television programmes, serials, podcasts, and other such content.
On-demand, as defined in the Rules, means a system where the content can be accessed at a time chosen by a user.
IPL Live streaming is not going to be available to viewers at a time chosen for viewing as indicated in the Rules.
CONCLUSION
The bidding for this tender secures Media Rights of IPL spanning over 5 years for the licensee. This will also mean a strategic expansion on the already controversial, contending exchange on the e-commerce front for Amazon and Reliance.
The competition is stiff, with both having deep pockets and presence in sports, equipped to deliver on it. For Amazon, this could be a comeback after the e-commerce battle in the Future coupons matter, and for Reliance, it would be another area to demonstrate dominance and capture supremacy in a time when the relevant laws in India are still evolving around digitisation and telecast.
Either way, BCCI may require an additional cashier!
Sources:
- Broadcast Rights Definition | Law Insider
- 1638281851_BCCI- Constitution-.pdf
- BCCI issues tender document for IPL media rights for 2023-27 season – Business Today
- Notice of Governing Council, IPL regarding release of Invitation to Tender for IPL media rights 2023-27
- Mukesh Ambani & his telecast rights
- Amazon partnership with New Zealand cricket board (livemint.com)
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