Comcast-NBC Merger Could Impact Olympic Broadcast Rights Bids
The expected merger of Comcast and NBC Universal "could play a pivotal role in the upcoming battle for broadcast rights to the 2014 and 2016 Olympics, and how those Games reach the U.S. audience," according to Karen Rosen of AROUND THE RINGS. Pilson Communications President Neal Pilson "believes the merger, which would create one of the largest media companies in the U.S., 'would give added strength' to keeping the Olympics 'as a marquee event that I think would help grow the combined brand of NBC/Comcast.'" Pilson: "They're both more than capable of paying $2[B] or more for rights. The question is whether the Olympics fits the marketing strategies of the companies. ... I would think the Olympics would be a kind of signature event that Comcast would want to carry to demonstrate it made a good deal with NBC." Rosen noted while NBC parent company GE "has made it clear it wants to get out of the television business," Comcast is "looking to build up its programming and distribution." IBAF President Harvey Schiller "believes it could be advantageous for the Olympics to be part of a distribution system such as Comcast." Schiller noted that Comcast offers "additional outlets for programming," though he added that NBC "already has several channels, 'so you're not adding much more.'" But Comcast "has regional outlets which NBC doesn't have, which 'can take specific programming that might be more in tune with a particular sport or team from that region.'" Meanwhile, Rosen wrote the prospective Comcast/NBC joint venture also is "expected to affect plans for the U.S. Olympic Network," for which the USOC was "planning to partner with Comcast." But "by joining forces with NBC," the MSO "takes on the Universal Sports channel, which often shows Olympic sports programming" (AROUNDTHERINGS.com, 11/15).
COULD CREATE A RIVAL FOR ESPN: In L.A., Meg James notes Comcast "already owns nine regional sports networks and cable channel Versus." But CitiGroup Global media analyst Jason Bazinet said that through an "association with NBC -- which has rights to top-tier sports such as professional football, college football, golf and the Olympics -- Comcast could be positioning itself as a potent rival to Disney's ESPN" (L.A. TIMES, 11/16).
CORRECTION: In last Thursday’s One-on-One interview, NBC Universal Sports & Olympics Chair Dick Ebersol said "there were only four or five men or women in the U.S. with the job description to become the USOC's new CEO." In addition, when commenting on a potential challenger to ESPN, Ebersol said, “No one in the history of media has ever opened up the new year every year knowing they have $5B sitting over there on the side of the room.” THE DAILY regrets the errors.
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