Willing to spend billions of dollars to buy the rights to broadcast live sports tournaments on its platform, Facebook may be looking to encroach on the television.
The Facebook deal costs £ 200 million, or about $ 264 million, to acquire the broadcast rights for the Premier League for three consecutive seasons from 2019-2020 in four Southeast Asian countries including Vietnam, Thailand, Cambodia and Laos. made the regional television industry feel the heat of competition from the social networking giant.
This is a new story in the region, but it is not the first time Facebook has paid heavily to buy the rights to broadcast live sports tournaments, competing directly with traditional broadcasters.
Willing to spend 600 million USD for Indian cricket
Unlike the rest of the world, in India, cricket is the king’s sport and of course the Indian cricket Premier League (IPL) is the most expensive sport in this market.
IPL was born in 2008 and currently has more than 1 billion global spectators, most of whom are from India, the country where cricket is the most popular sport. The tournament has the financial presence of the richest people in India as well as many of the country’s movie stars.’
With a hotly developed social networking market like India, Facebook needs more “weapons” to compete as well as more quality content to generate revenue, and copyright of tournaments like IPL is what Facebook needs.
The proof is that the company is willing to spend $600 million to participate in auction auctions of broadcast rights for 5 consecutive years from 2018 of this attractive tournament.
IPL will help Facebook attract more users in India, help it increase users’ Facebook usage in this market and boost Facebook Watch, the video streaming segment that Facebook aspires to compete with YouTube.
The revenue that Facebook targets is the revenue that attracts advertisers from traditional television platforms if it successfully acquires IPL’s copyright.
However, Facebook’s intentions went bankrupt when Twenty-First Century Fox’s Star India channel won the copyright for a record price of $2.55 billion for both traditional and live broadcast copyrights.