Amazon decides to withdraw from IPL the cricket rights auction

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Amazon decides to withdraw from IPL

Amazon will not be bidding on the 5 year IPL Media Rights, it was a shocking decision that is made at the last minute and leaves the highly anticipated auction at the disposal of Disney as well as Reliance.(Amazon decides to withdraw from IPL)

The online retailer was one of the many tech giants getting ready to take part in the auction on Sunday which will give the cricket media rights from 2023 to 2027.

Amazon decides to withdraw from IPL

Amazon has invested around $6.5 billion to the course of its India operation and runs the Prime Video streaming service, has informed the BCCI the cricket board which is responsible for the IPL tournament and has said it will not be participating in the auction according to the person who spoke to us and requested anonymity since the details are confidential. The media reports in the early hours of this morning were circulating the possibility of a conflict with Reliance’s Mukesh Ambani one of Asia’s most wealthy men as well as Amazon the founder Jeff Bezos.

Amazon has not responded to an inquiry for comments.

Many millions of people across India can be seen watching IPL it is among the most watched cricket tournaments where teams from 10 countries compete against each other over a dozen games. IPL is a hugely popular IPL competition, which is played for approximately two months, has contributed to Disney establish numerous streaming records across the globe..

Ambani’s Reliance is the largest retailer chain of its kind in India and is also the biggest telecom provider is preparing over the last few months in order to fully commit to the rights to cricket. Ambani-owned TV network Viacom18 recently signed a partnership with and received money from -the – James Murdoch and Uday Shankar’s company Bodhi Tree. They previously owned Star India and their bet on Hotstar and cricket streaming has made the Indian app a the jewel of Disney’s portfolio. The duo is now going up against their former business.

Disney who currently hold the rights to stream, and Mukesh Ambani’s Reliance is expected to be head-to-head in this auction that industry experts think could fetch around $4 billion to $7 billion.

Star India, a Fox subsidiary that joined Disney after the acquisition, was the winner of the most recent rights auction for five years with an $2.5 billion price in the year 2017. Hotstar is now expanding into Southeast Asia, has played an important part in aiding Disney gain 200 million subscribers across the globe. Numerous analysts have advised Disney to pull out of the bidding process because Indian subscribers do not bring in a lot of revenues to the company which makes it hard to justify the steep cost of the rights.

“I would like nothing better than if they didn’t get the IPL rights and walked back their subscriber number,” said Michael Nathanson, a senior MoffettNathanson media analyst, said to WSJ earlier in the month. “It would indicate a focus on financial discipline and return on capital.”

Google and Facebook both put in a substantial bet for the rights for five years in the past, are likely to not bid in a major manner experts familiar with the issue told.

The winning of IPL rights could have enabled Amazon to attract many viewers to its streaming application, Prime Video. Prime Video that already broadcasts a few match matches in cricket is the most well-known on-demand streaming services in South Asia. South Asian market, thanks in part to the growing popularity of original series.

“OTT market” in India is extremely competitive, with more than 40 platforms. Disney Hotstar is the OTT leader , offering the most sports-related content (plus the IPL cricket). Hotstar subscriber base is 50 Mn (~30 percent of Disney + subscribers). Amazon Prime has seen strong growth thanks to its high investment on original and original video. Amazon Prime Video subscriber base is at 16 Mn and Netflix has 5.5 Mn paid subscriptions. Sony Liv/Zee merger has created another major player,” the analysts from Bernstein reported earlier in the year.

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