Wednesday, May 7, 2014

Two More Decades of NBC Olympics

For those of you who don't like NBC's tape-delayed primetime Olympic coverage, I've got some bad news for you.  You'd better get used to it.  Because NBC and the IOC made an unprecedented deal today that will keep the Olympics on NBC until at least the 2032 Summer Games.  That'll run NBC's streak to 11 straight Summer Olympics dating back to 1988, as well as marking 32 consecutive years as America's exclusive Olympic home.

This deal is somewhat shocking.  Not because it happened, but because it came completely out of the blue.  NBC most recently renewed its rights only three years ago, keeping the Olympics on the Peacock until the 2020 Tokyo Games.  That time, they faced an incredible bidding war from ESPN and FOX, and most people assumed that they'd face another bidding war when it came time to renegotiate the U.S. rights again in a couple years.  I guess that ain't happening now.

Part of the reason the U.S. hasn't hosted an Olympics since Salt Lake City was because the USOC and IOC couldn't come to a revenue-sharing agreement.  That's finally been settled, the USOC and IOC are back in each other's good graces, and a U.S. Games looks likely within this three-Olympic cycle that NBC just locked up. 

They probably wanted to make sure that they had the rights locked up before a U.S. city won the right to host, when EVERYBODY would want the Games and would've been willing to pay above market-value for them.  That's exactly what happened in Canada.  In Canada, the Olympics have been on CBC for as long as anybody can remember...until rival CTV swooped in and got the rights for 2010 and 2012, meaning they'd get the Vancouver Games.  With Canada not hosting again anytime in the near future (although, I think Toronto does have a pretty good shot), CTV has no interest in showing the Olympics, so the rights went back to CBC in Sochi.

As for the IOC, it was almost a no-brainer to lock up a long-term U.S. broadcast deal.  Something like 95 percent of the IOC's entire budget comes from broadcast rights fees, with a majority of that paid by NBC.  This deal keeps the revenue coming in steadily for the next two decades, while also giving them the flexibility to do some long-term planning.

And say what you want about their coverage, but there's no denying NBC has shown a commitment to the Olympics.  They cross-promote like you wouldn't believe, and the existence of NBCSN has resulted in plenty of Olympic Trials coverage in the lead up to the London and Sochi Games.  They even showed the Sochi Paralympics live, a first, and will likely continue to do so.

If the IOC wasn't pleased with NBC, they wouldn't have extended the relationship this early.  Or for so long.  In fact, if they wanted to get out, they had the chance to in 2011.  So, it's clear that the IOC appreciates the work started oh-so-many-years ago by Dick Ebersol and has been carried on in recent years by Gary Zenkel and Mark Lazarus.  It's not just because NBC has the deepest pockets.

Meanwhile, the criticism of NBC's Olympic coverage, which some people enjoy more than actually watching the Olympics and is, for the most part, unwarranted, hasn't stopped people from watching.  London was the most-watched event in TV history, and the Sochi ratings were significantly higher than those from Vancouver.  Add in the live streaming, and it's proof that NBC is getting plenty of bang for its buck during the Olympics.  And I can't even begin to think of what other digital platforms that haven't been invented yet people will be watching the Olympics on in 2032.

The way I see it, this is a win-win for everyone.  It's obvious how well the IOC makes out in this deal.  Their pockets will be overflowing with NBC's money for the better part of two more decades.  For NBC, they know they're going to get their ridiculous Olympic ratings every two years for those same two decades.  As for the USOC and the sports federations, they know they're going to get the same commitment and dedication from NBC that the network has previously shown them.

Whatever your feelings about NBC and the Olympics are, there's no denying that the two have become synonymous with each other.  It's been so long since an Olympics weren't on NBC, that nobody even remembers what one on another network was like.  (For the record, it was 1998, when CBS covered the Nagano Games.)  Fortunately, we don't have to think about that for a long while.  The Olympics have found a home on NBC.  It's nice to know they're not going anywhere.

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