NBC Wins TV Rights to 4 Olympics for $4.3 Billion
NBC extended its Olympic reign until 2020 as Comcast, its parent company, agreed to acquire the rights to the 2014 Winter Games in Sochi, Russia; the 2016 Summer Games in Rio de Janeiro; and the next two Olympics, in unspecified cities. NBC bid $4.3 billion for U.S. broadcast right for the four Olympics. The victory was a sign that Comcast saw the value of continuing the relationship with the Olympics, with its powerful impact in prime time. ESPN bid $1.4 billion for the 2014 and 2016 Games; Fox put in bids for two Olympics and for four Olympics. Early reports peg NBC's bid at $4 billion, which would make this the most expensive TV rights deal in Olympic broadcast history.
Comcast's NBCUniversal expects to make a profit on the $4.4 billion it will expend for the US media rights for the 2014 through 2020 Olympic Games. "We are excited to get started and continue the great legacy and work that has been the relationship between NBC and the Olympics. We couldn't be more proud," Roberts said. "We've been clear from the beginning that we want to be disciplined and responsible," Roberts said. "We think this will be a profitable relationship for NBC Universal. Having eight more years, we will have an opportunity to build up a lot of the assets at NBC Universal....It was unanimous among our team that having [the Games] for the longer term will help us achieve that goal." It was not immediately known whether Comcast would seek an Olympic surcharge as NBCUniversal had for Olympics past and present, under General Electric's ownership. Sources indicate that NBCU has already obtained surcharges from a number of MSOs for some of the Games under the new deal. NBCU is also said to be receving contributions from broadcast network affilait to support the Games' bid.
NBC Wins TV Rights to 4 Olympics for $4.3 Billion NBC Grabs Olympic Gold (AdWeek) NBC retains US Olympic TV rights in 4-games deal (AP) Roberts: $4.4 Billion Olympic Rights Deal Will Be Profitable (Multichannel News)