The pay-TV network OSN has secured the rights to broadcast all International Cricket Council (ICC) events for eight years across the Middle East and North Africa (Mena).
OSN already holds the rights to the 2015 ICC Cricket World Cup and has renewed the rights from 2015 to 2023 through an arrangement with 21st Century Fox-owned Star.
“We are extremely pleased to be awarded the ICC rights, which not only cements our commitment to cricket but also positions us as the undisputable home for live and exclusive cricket coverage in the region,” said David Butorac, the chief executive at OSN. “This long-term partnership with the ICC and Star further strengthens OSN’s portfolio of live cricket, providing viewers with the biggest sports events in the world.”
Although the ICC did not disclose the final value of the rights fee, reports in the Indian media, citing sources, said the deal that runs until 2023 is valued at about US$1.98 billion, significantly higher from the $1.1bn awarded in 2007. A value for the Mena region was also not provided.
Star won the rights from the ICC for 18 tournaments and is now sub-licensing the rights in Mena to OSN.
While cricket does not enjoy the same level of following as football in the region, there is a sizeable Asian as well as Australian and English population that would be interested in watching the matches.
“There is a big Asian community, in the UAE. It’s the largest when it comes to the percentage of the population, so it is a big market,” said Elie Haber, at Fusion 5, an advertising agency.
The large South Asian population in the GCC presents a good opportunity for advertisers.
“I think it’s a potentially huge opportunity for the advertising world in the Middle East, especially in Dubai, or in the UAE as the country is vividly known as a prismatic fan of cricket and everyone could get excited to read some news, see some billboards and hear anything that is tantamount to the never-ending growth of lucrative sports in the region,” said Aishah Yousef, the general manager at adfusion media.
In August OSN signed a deal with Abu Dhabi Media to migrate its suite of HD channels, including four HD sports channels, on to the OSN network.
OSN rejected a $3.2bn offer for a majority stake earlier this year. Kuwait Projects Company (Kipco), which owns 60.5 per cent of OSN, and fellow shareholder Mawarid Group turned down the bid from an unnamed private equity firm in the United States for between 51 and 100 per cent of OSN.
The subscription-based network was valued at $4.3bn last year by Arqaam Capital, based on expected growth in the pay-TV sector and after its acquisition of the South Asian-language network Pehla.
Last year Kipco announced plans to offer an initial public offering, but in May Mr Butorac signalled a different direction. “We have no current plans for an IPO,” he told The National. “The shareholders have publicly articulated they are looking at the options for the future and one of those is to approach the equity markets. But as it stands today, we have no active plans or time frame.”
thamid@thenational.ae
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