http://money.cnn.com/2016/05/06/media/nbc-olympics-rio/ The Rio Olympics, set to run from August 5 to August 21, have succeeded in generating interest from advertisers. NBC has already exceeded $1 billion in ad sales. Otherwise, you're telling me that their revenue doesn't largely come from ad sales?
If fewer Americans are competing, fewer will watch. If all the contenders are not entered, the games lose their relevance. TV networks base their broadcast bid on market share, which has to be way over the top to come out with the cost of the Olympics. Many times, a network takes a calculated loss on the rights cost for the prestige of carrying them, with selling the air time to local advertisers making it up.
I'd expect that the majority of revenue that gets generated for the olympics is through economic impact of the tourists that arrive and sponsors. I doubt nbc pays the host county much at all. Very few Olympics have made money.
Well, I don't think that there will be any issues regarding Americans competing in events and, with the amount of ad time they have sold, seem to have nearly recouped their costs anyway.
Apparently they spent $1.23 billion on rights and another $100 mil on advertising. That doesn't include production costs which are probably in the many millions too. Good article http://money.cnn.com/2016/05/06/media/nbc-olympics-rio/
Yes, it is. I linked it earlier. It's two months old, also, so I have to think that they have sold even more ad time. I have to think that sponsors and the meteor network were counting on high viewership.
There are already some who have withdrawn with others considering it. Just because time has been sold doesn't mean it will stay sold. It was sold based on a certain market share. If it falls short, they could have to discount it. Not doing so would cost them more than they would gain.
I don't know of any American who is a huge draw or 'star' in swimming, volleyball, gymnastics or track who is passing on the Olympics. I would consider those the 4 that NBC spends the most time on and draws the highest ratings. While all the golfers are dropping out, I don't think gold f was going to move the needle in the first place.
I forgot about USA basketball which of course people will watch, and the US women's soccer team, which people will watch too. I have never looked at ratings from each year of the Olympics, but I can't imagine the delayed stuff is better than that in real time, as it will be this year.
