Mumbai, First Published Jun 18, 2022, 2:11 PM IST
Reliance has abruptly withdrawn from the bidding process for the telecast of the IPL T20 cricket series, the second largest league in the world. Following this, Walt Disney Star of the United States acquired the broadcasting rights for $ 300 billion.
It was initially rumored that Mukesh Ambani’s Reliance and Amazon’s Jeff Bezos were vying for the IPL broadcasting rights for the next five years. However, the sudden withdrawal of Amazon and Reliance from the IPL broadcasting rights competition came as a surprise to everyone.
Paramount Global and Reliance, a US media company, have teamed up to seize digital rights. With the acquisition of digital rights, they plan to quadruple advertising revenue over the next 5 years. But he was not interested because if he won the television rights, the growth available would be slow.
However, reports suggest that although Viacom 18 Media and Ambani-Paramount initially competed for the television license, these companies were still interested in digital broadcasting rights.
Viacon 18 finally won the IPL digital rights for $ 31 billion. Reliance Jio withdrew from the competition in anticipation of acquiring a digital license. Reliance’s withdrawal from the auction is said to be due to Reliance’s intention to use the growing number of customers on Reliance’s Geo site in a different way. That is, Geothal aims to promote additional entertainment features and e-commerce.
In addition, the withdrawal of Reliance from the auction saved the company millions of dollars. Reliance has decided to divert all these dollars to the 5G auction in India next month.
If Geo, which already has millions of customers, successfully completes the 5G spectrum auction, customers will choose Geo Network to watch the upcoming IPL series.
Then the number of Geo network customers will increase and the e-commerce and entertainment aspect of the Geo site will increase.
As the number of IPL viewers on smartphones increases, so will the cost of data, and data sales will increase. With this, Geo is expected to move towards tremendous growth in the next few years.
Reliance did not withdraw from the IPL broadcasting rights auction. That’s all there is to it when you look at the segment that gets a bigger profit than that. This is why Mukesh Ambani is the first billionaire in the country and Reliance Jio is making a profit every year.
It is estimated that 90 crore people in India will use the Internet in the next 5 years. There is no internet without data, therefore, Ambani is focusing on the 5G auction as data from the internet requires spectrum.
Last Updated Jun 18, 2022, 2:16 PM IST