Think NBC is spending too much on Olympics programming? Maybe NBC knows something we don’t.
Even with all the potential problems of the Rio games -- infrastructure, polluted
waterways, economic instability, senior elected officials looking to be ousted, and, oh yes, the threat of the Zika virus -- NBC high-profile sports content looks to make money, and lots of it.
Costing around $1.226 billion -- slightly more than the $1.18 billion for the London Summer games in 2014 --- this will be "the most profitable Olympics in history,” Steve Burke, CEO of
NBCUniversal, says.
The Rio games will benefit from more
“live” programming than four years ago in London. And in that regard, NBC expects higher overall ratings -- and so will advertisers. NBC is promising marketers almost the exact same
mid-to-high teens household ratings they got for the London games.
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Though few live sports events have viewership guarantees, the high price of Olympic advertising -- as well as the
availability of TV-video advertising inventory in the 16-day, near-round-the-clock Olympic sport competition -- still means decent return on investment for marketers.
Burke says,
for the first time ever, NBCUniversal hit its goals three weeks before the event. And we know why.
No matter what happens, sports programming will continue to be profitable, and
ever-more-expensive, content for TV networks, especially with the fractionalization of non-sports TV programming content that is increasingly time-shifted, and where commercial avoidance continues to
be a major problem.
Viruses, financial instability, and general country turmoil? Just part of the whole picture NBC will bring in for U.S. viewers. And there’ll be some trophy bling and
hopefully some good competition for sports that are played.
Of course, many U.S. viewers will be watching -- maybe even the commercials.