NBC Shopping Uncommon Olympics Digital Rights Package
NBCU "has started pitching cable and satellite operators as well as ad buyers on an Olympic package of digital rights" around the '08 Beijing Olympics that includes broadband, VOD and mobile programming, according to Ourand & Mickle in this week's SPORTSBUSINESS JOURNAL. Though negotiations are in the "early stages," the move "is significant because NBC is trying to get the operators to pay a license fee for the digital package." NBCU President Gary Zenkel said, "We want to be able to provide operators the ability to offer their subscribers enhanced coverage of the Olympics." NBC plans to roll out the broadband component, slated to be "the biggest part," next spring, and will package it with the VOD content. NBC plans to make the content "ad-supported and free to consumers," and "has approached several ad buyers about advertising on the digital package." Ourand & Mickle note operators have been "reticent about paying license fees to broadband sites." ESPN360 is the only sports broadband site that "has followed this model," and NBC's effort is a "harder sell" because operators said that they "were not interested in paying for niche content that attracts small -- but loyal -- audiences." The digital package also includes a mobile aspect, which is being negotiated, and Zenkel indicated that "it's possible that NBC will make its mobile Olympic content available exclusively to one provider" (SPORTSBUSINESS JOURNAL, 10/22 issue).
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