NBC proves an endangered species — live audiences — is a real money-maker
Yesterday, the CEO of NBC Universal revealed that even though the numbers were down, the Olympics still brought in a hefty haul for the Peacock. Why? The Olympics bring out the endangered species — a live audience. And by “live”, we mean living breathing people sitting and watching a TV without fast-forwarding through commercials.
And so, while the total number of viewers was down, and down considerably compared to the London games, for NBC it didn’t matter because for delivering advertisers a unique, rare audience, they were able to charge a hefty premium. In particular, Olympic coverage attracts an audience that doesn’t typically watch sports — which is hard to find in this age of DVR’s, stream on-demand and social media clips.
Speaking Wednesday at the Bank of America Merrill Lynch Media, Communications and Entertainment Conference, NBC Universal CEO Steve Burke characterized the Olympics as a “tremendous success,” adding that the company “made over $250 million in Rio,” thanks to a 20% increase in ad sales volume compared to what it took in during the London Games.The Rio cash surplus more than doubled the $120 million NBC pocketed four years ago in London. Mr. Burke noted that the profit marked a stark contrast versus the NBC-produced Olympics of yesteryear, when the network would lose as much as $200 million on the 17-day event.
Source: NBC Makes $250 Million Profit on Rio Olympics | Special: The Olympics – AdAge
