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SBD Global/June 29, 2012/Media
NBC says It Will Lose Money On London Games Even With Increased Ad Sales
Published June 29, 2012
DIGITAL REVOLUTION: In N.Y., Richard Sandomir wroteNBC's plans in London "represent a break from the past and a continued embrace of it." Every event "will be shown live, online at NBColympics.com." Live events also will "be seen on the NBC Sports Network, CNBC, MSNBC and NBC in the mornings and afternoons." But in "prime time, NBC's broadcasts will be on tape." NBC has been "moving toward a digital Olympics, a bit fitfully, and somewhat fretfully, since '08." But now, it "appears to be a wholehearted shift to the digital present." Lazarus said, "As times have changed there is a sense to satisfy all people with technology. And the ability to provide live streams of every event is one that we now have." NBC's Bob Costas suggested that the Olympic business model former NBC Sports Group Chair Dick Ebersol "championed was not wrong -- and that criticism of it was off base." Sandomir wrote NBC "did what it had to do, with its dependence on prime-time advertising to finance its rights fees, and without billions of dollars of ESPN-like subscriber fees, to pay its Olympic rights fees." But NBC's "adherence to a business model that made sense internally did not mean that fans, and those who are paid to watch, were wrong in registering their dismay at taped sports events and minimal live streaming." Sandomir: "Technology, and corporate ownership, have clearly altered NBC's Olympic course" (N.Y. TIMES, 6/28).