Why do you think Amazon stayed away from the #IPL media rights auction?
Several reasons probably. Yesterday I shared two probable reasons that came to mind. Let's dig deeper on another point.
Prime has 22-odd million subscribers in India. Second after Hotstar at 46+ million.
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Several reasons probably. Yesterday I shared two probable reasons that came to mind. Let's dig deeper on another point.
Prime has 22-odd million subscribers in India. Second after Hotstar at 46+ million.
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Amazon has invested close to 6.5 billion dollars in their India business operations over the last 7+ years.
They need to infuse further to retain their e-retail market share which stands at close to 30% right now (media estimates).
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They need to infuse further to retain their e-retail market share which stands at close to 30% right now (media estimates).
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Now imagine if Amazon had come to bid for Package B & C in IPL.
They would be looking at an average spend of US& 4 billion approx?
That's 75% of their total business investments in India over the last 7 yrs.
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They would be looking at an average spend of US& 4 billion approx?
That's 75% of their total business investments in India over the last 7 yrs.
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So, now, will spending 75% premium on their total investments guarantee them a 75% growth in number of subscribers over the next 5 years?
22 million might go to 30. But will it go beyond the Hotstar number?
There'll be a marginal number.
Now look at Hotstar.
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22 million might go to 30. But will it go beyond the Hotstar number?
There'll be a marginal number.
Now look at Hotstar.
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They have to retain their 46m odd subscribers. Amazon knows how aggressive they'll be.
Look at Viacom -- they have to work on a completely new and fresh canvas.
Amazon may have taken this very simple math into consideration... while leaving us to bear the following in mind.
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Look at Viacom -- they have to work on a completely new and fresh canvas.
Amazon may have taken this very simple math into consideration... while leaving us to bear the following in mind.
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Their India business is still a relatively small one compared to how they operate in the west.
Second, given their recent experiences, they would've realised "India is quite a different market from the rest of the world" in terms of operational policies & framework.
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Second, given their recent experiences, they would've realised "India is quite a different market from the rest of the world" in terms of operational policies & framework.
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Probably a 4 billion dollar investment in IPL (that doesn't really cater to American prime time) was seen as a bit of an "overspend".
That...
And the other reason: Why face the prospect of losing to Reliance again.
Who knows?
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That...
And the other reason: Why face the prospect of losing to Reliance again.
Who knows?
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So either these are the reasons or their board couldn't reach Jeff Bezos in time to take necessary permissions because he might have been on his yacht somewhere in the middle of the beautiful Caribbean seas, reading up on "spirit of cricket".
🙂
🙂
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