The Hindu Business Line : IPL sells ‘theatrical telecast’ rights for Rs 330 cr

Entertainment and Sports Direct has won the rights for theatrical telecasting of the matches in cinema halls, stadia, hotels and other such public places.

Debabrata Das

New Delhi, Nov. 12 The Indian Premier League (IPL) has sold the theatrical telecast rights for cricket matches that it proposes to host between 2010 and 2019 for Rs 330 crore, almost four times the base price of the bid.

Entertainment and Sports Direct (ESD), promoted by London-based private equity firm DAR Capital Group, won the rights for theatrical telecasting of the matches in cinema halls, stadia, bars, hotels and other such public places.

The IPL received only two bids with Triplecom Media being the other contender.

According to Mr Sai Nagesh, Chief Growth Officer, Dentsu Media, the bidding process did not see multiplexes and real-estate developers bidding for the theatrical telecasting rights as the maximum revenue generation is expected to come from public places.

“The highest generation of revenue after winning the bid would come from public places. Now to screen matches in a stadium or an auditorium, it would require assistance of the local authorities for security reasons. This is one of the main reasons why most companies want to stay away from it,” he said.

“Having said that, I think this is a great move by the IPL. The price at which the telecasting rights has been sold is high. This is also a fantastic way to merchandise the product,” added Mr Nagesh.

The Chairman and Commissioner of IPL, Mr Lalit Modi, said in a statement, “The ESD bid is subject to final approval from the IPL Governing Council. This agreement will help us take the IPL action direct to fans on the large screen.”

ESD has signed an agreement with UFO Moviez, which beams movies through a satellite directly to cinema halls. Mr Arun Rangachari, Director, ESD, said, “We believe that there are significant untapped business opportunities that are being addressed by the association with UFO Moviez.”

ESD has also tied up with Valuable Media, a company engaged in delivery and playout of live high definition video content. ESD’s Mr Nagesh said, “Rs 330 crore is a good price for ESD. With matches being screened at theatres, bars and possibly even stadiums, breaking even should not be a problem.”