Quote:
Originally Posted by Yume-sama
I don't know how you lose that much on the most watched in history. How much did they lose on the ones nobody watched??
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Lets remember that NBC paid a record amount for the rights to both the Vancouver Winter and London Summer as a package when the economy was still robust, but then had to sell the ad space in 2008/09 when the economy tanked and American companies were cutting back on their ad expenditures.
Hopefully the US economy will have bounced back by the time London 2012 opens, and NBC is still able to generate a profit on that broadcast.
However, being the Summer games, the expenses of setting up & broadcasting will be substantially higher than the estimated $200 Million they spent setting up and broadcasting the Vancouver 2010 Winter games.
I don't think NBC, CTV, or any other network does the Olympics to make money. Its the prestige of being "The Official Olympic Broadcaster" that they hope will pull in other ad revenues to the network and their other shows. Much the same as being the network that has the Superbowl, or the World Cup, or the Oscars - all prestige events that likely don't make money from their ads, but bring in advertisers to the networks' 'bread and butter' shows for the rest of the year. Or rather, the major advertisers on the 'bread and butter' shows get a sweeter deal for ads on the prestige event broadcasts.