Reaction to the deal was mixed, as most praised the IOC
while holding out judgement on the purchase by NBC. Some
"skeptics question whether NBC could make money on such a high
rights fees, given the uncertainties of where video technology
and the advertising marketplace will be more than a decade from
now" (WALL STREET JOURNAL, 12/13). NEWSDAY's Steve Zipay calls
it "a gamble," citing the uncertain economic future. One TV
exec: "I'd hate to be the forecasters trying to estimate the
marketplace: What will the ratings be with more and more
channels? What's the impact of computers and interactive media?"
Zipay writes without a U.S. site, ratings "are a risk" (NEWSDAY,
12/13). Analyst Dennis McAlpine, of Josephthal Lyon & Ross, said
there is "cache" to NBC being called the "Olympic network,"
adding,. "There is also obviously a very strong benefit to
attracting NBC's advertisers, because it's a venue that they can
show them" ("Moneyline," CNN, 12/12). In Baltimore, Milton Kent
calls it a "significant commitment of cash and time" at a time
when there are rumors a possible stake in the network is for
sale. Kent notes the announcement makes NBC and its stations
"more attractive to potential buyers" (Baltimore SUN, 12/13).
Richard Sandomir writes NBC's "wager is that the power of Olympic
programming outweighs the risk of its future payments" (N.Y.
TIMES, 12/13).
HAPPY AFFILS: Others say the deal should help NBC "lock in
the remaining 10% or so of its 215 affiliates that haven't yet
signed long-term deals." NBC is likely to buy more TV stations
pending approval of telecommunications legislation (Elizabeth
Jensen, WALL STREET JOURNAL, 12/13).
