Indian Cricket Board Reaches Out to Amazon and Alphabet to Boost Interest in Media Rights Auction
Portfolio Pulse from Anusuya Lahiri
The Board of Control for Cricket in India (BCCI) is encouraging Amazon and Alphabet to participate in a media rights auction for the Indian cricket team's bilateral series games. The auction has been postponed by two weeks to attract more firms. Media companies have shown limited interest due to difficulties in profiting from cricket content amid weak advertising revenues. Ernst & Young expects the sale of rights to 102 matches to fetch at least $750 million. Viacom 18 and Disney, who outbid rivals in the previous IPL auction, are expected to bid for digital media rights to the bilateral series.
August 04, 2023 | 11:13 am
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Disney, which faced difficulties generating profits due to weak advertisement revenues, is expected to bid for digital media rights to the bilateral series. However, it may take a cautious stance amid cost reduction efforts.
Disney's previous difficulties in generating profits from cricket content and its current cost reduction efforts suggest that it may not aggressively bid in the auction. This could potentially limit its content offerings, negatively impacting the stock in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Amazon is being encouraged to bid in the media rights auction for the Indian cricket team's bilateral series games. This could potentially increase Amazon's content offerings.
While the news of BCCI encouraging Amazon to bid in the media rights auction could potentially increase Amazon's content offerings, it is uncertain whether Amazon will participate and win the bid. Therefore, the short-term impact on the stock is neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Alphabet is being encouraged to bid in the media rights auction for the Indian cricket team's bilateral series games. This could potentially increase Alphabet's content offerings.
While the news of BCCI encouraging Alphabet to bid in the media rights auction could potentially increase Alphabet's content offerings, it is uncertain whether Alphabet will participate and win the bid. Therefore, the short-term impact on the stock is neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70