NBC’s Olympic network, Universal Sports, is on the cusp of announcing a significant distribution increase that will see the channel add about 15 million homes, taking its distribution to 45 million.
The network has secured distribution in 19 new markets, signing deals with NBC affiliates in Houston, Miami, Seattle, Denver, Portland, Indianapolis and Salt Lake City.
The channel has been gaining distribution by occupying the digital multicast bandwidth used by over-the-air broadcasters. That strategy effectively creates an end-around the traditional cable and satellite route most new networks have to take.
NBC immediately gave the channel access to the multicast streams at its 10 owned-and-operated stations. These new deals are with local NBC affiliates not owned by NBC.
“They see the same value that we saw in these types of sports,” said Gary Zenkel, president of NBC Olympics. “As the Olympics draw closer, that sale will become part of the Olympic sale.”
Affiliates aren’t paying a fee for the channel but have worked out a revenue-sharing advertising deal with Universal Sports in exchange for distribution. NBC plans to keep pitching the channel to its affiliates in other local markets, using that same digital bandwidth. The two largest markets where it hopes to gain distribution are Boston and Atlanta. It also is prepared to start negotiations with cable and satellite operators to gauge interest in digital basic penetration.
Universal Sports supplemented
the coverage NBC provided for
this month’s Alpine World Ski
Championships in France.
The partnership between NBC and WCSN that was created in June 2008 has been successful, according to executives with both sides. Universal Sports CEO Claude Ruibal credits NBC with driving the distribution. “NBC took a big risk and made a big commitment with us,” Ruibal said. “They’ve really lived up to that on the sales front, distribution front and marketing front. It bodes well for the future.”
The partners have collaborated on everything from ad sales to programming to marketing. NBC rolled out a Universal Sports promotion during its pregame for the Super Bowl with a spot focused on the Alpine World Ski Championships.
NBC placed Jay Marsac as head of Universal Sports’ ad sales. Marsac had been on NBC’s Olympic sales team. He recently completed a Sprint deal for the Alpine World Ski Championships.
Zenkel and Ruibal believe the programming is the real selling point. Zenkel credited some of the more recent events with helping the channel secure some of the newer distribution deals. He pointed to the recently completed skiing World Championships, where NBC aired same-weekend coverage that UniversalSports.com and Universal Sports TV supplemented with more than 100 hours of same-day broadcasts.
“That shows the power of this network, and shows the kind of quality content we produce,” Zenkel said. “There’s a tremendous amount of rich content and interest in the sport among U.S. sports fans.”
NBC and Universal Sports also plan to share programming around events like Tyson American Cup Gymnastics, scheduled for Saturday. Universal Sports will offer a live lead-in from 2:30-4 p.m. ET; NBC will cover it live from 4-6 p.m.; and Universal Sports will re-air NBC’s coverage later in the week.
“That strategy has resonated well and the advertisers like it,” Ruibal said. “It’s upped our production quality as well.”
