NBC Sports Chair Dick Ebersol said at a news conference
yesterday the network will show a "small profit" from its
coverage of the Summer Olympics, as ad sales are expected to
reach $900M by the start of the Games, according to Leonard
Shapiro of the WASHINGTON POST. Ebersol also said that the
network will spend $100M in production costs and estimated
that ratings will be in the 17.5-18.5 range, a "significant
but expected drop" from the 21.6 garnered by the '96 Atlanta
Olympics and the 23.2 for the '84 L.A. Olympics. NBC will
"limit commercials" to 18 per hour, or about nine minutes
per hour, which is "two fewer 30-second spots than the
average prime-time number of the four major networks." A
total of 279 hours of Games coverage will be available on
NBC's cable outlets, with an "emphasis on long-form
programming that will feature complete game or event
coverage" in 20 sports with 30 gold medal finals. Of those
279 hours, 214 will be on MSNBC and 65 on CNBC. NBC's
prime-time coverage will run every night from 7:00pm-12:00am
ET. NBC's coverage will also air from 10:00am-noon weekdays
and 11:00am-6:00pm weekends. A late-night show will air
from 12:30-2:00am every night (WASHINGTON POST, 6/29).
PROFIT PREDICTIONS: In L.A., Alan Abrahamson writes,
"NBC -- which bet big on the Olympics -- may have bet
shrewdly." When the Olympics deal which gave NBC the rights
to the Olympics through the 2008 Games was first signed, NBC
execs "originally believed the Sydney portion of the deal
would be a loss leader or perhaps break even. The idea was
to recoup the investment -- and more -- in Salt Lake.
Expectations have changed" (L.A. TIMES, 6/29). In N.Y.,
Richard Huff notes that NBC paid $705M for rights to the
Sydney Games and "internal projections" originally called
for a loss of as much as $75M. So far, NBC has sold $780M
in advertising time, which is $100M more than its take for
the '96 Games. Ebersol: "We are already assured of a small
profit." Ebersol said the Olympics bid scandal did not hurt
NBC's ad sales: "The effect on viewers was almost
nonexistent." As a result, "advertisers continue to buy
into the coverage" (N.Y. DAILY NEWS, 6/29). NBC will devote
the first half-hour of the opening ceremonies to the outcome
of the scandals (Rudy Martzke, USA TODAY, 6/29).
LOOKING AHEAD: BROADCASTING & CABLE presents an
Olympics/Sports Production Special Report, and Steve
McClellan writes that NBC's O&Os are "completely sold out"
of ad time around the Summer Games. Looking ahead, NBC TV
Network President Randy Falco said that the 2002 Games "are
already 50% sold out," while the 2004 Games are 30% sold.
Advertisers calculate that the average price for a 30-second
prime time spot during the 2000 Games is "in the
neighborhood of $600,000. But they caution that that number
fluctuates with any given package" (B&C, 6/26 issue).
