Last week, Disney Star had retained the TV and digital broadcast rights for the next cycle (2024-27) of the matches with its composite bid of about $3 billion, against the benchmark price of $1.44 billion set by ICC.
As part of the arrangement with ZEE, Disney Star will only stream matches on its digital platform Disney+Hotstar in India, the companies said in their joint statement on Tuesday.
Although the broadcasters did not disclose financial details of the deal, ET has learnt that ZEE will pay Disney Star 30-40% of the total rights value – between $900 million and $1.2 billion – for the carved-out rights over the four-year period. “At present, revenue from TV is much higher than from digital, but the equation is changing fast, which is also evident from the way these broadcasters bid for IPL rights,” said a person with knowledge of the development.
ICC Approval
“Also, India matches will have to be shared with Prasar Bharati under a mandatory sharing clause for games of national importance, which may have driven ZEE to bargain hard,” said the person cited earlier.
The two companies said ICC has in-principle approved the arrangement. However, sources close to the ICC board told ET that the proposal is yet to be approved. “Disney Star had informed ICC of the possibility of this kind of an arrangement, and it is provided for in the contract,” they said, adding that ICC will not divulge details of the commercial arrangement, which remains with Disney Star and not ZEE.
“This is a first-of-its-kind partnership in the Indian media and entertainment landscape, and this association with Disney Star reflects our sharp, strategic vision for the sports business in India,” said Punit Goenka, managing director of ZEE, in the statement. “As a one-stop television destination for ICC men’s cricket events until 2027, ZEE will leverage the strength of its network to offer a compelling experience for viewers and a great return on investment for its advertisers.”
Goenka, who is also chief executive, said, “Long-term profitability and value-generation continue to be our areas of focus across the business, and we will always evaluate all the necessary steps that will enable us to make sports a compelling value proposition for the company.”
K Madhavan, country manager, Disney Star, said, “By securing the IPL television broadcast rights for 2023-27, and now opting to retain only the digital rights for ICC tournaments for 2024-27, we have in place a balanced and robust cricket offering for our audiences across linear and digital.”
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