Silver looms for Olympics ad revenue
There is speculation today that Nine will fall short of its $140m revenue target for the London Olympics.
- Published by David Knox
- on
There is speculation today that Nine will fall $10m – $15m short of its $140m revenue for the London Olympics.
The Australian reports today that Nine had failed to sell all its planned sponsorship packages and that it had been offering significant deductions off rate card rates.
Both Nine and Foxtel have paid $120m for the rights to both the Vancouver 2010 Winter Olympics and the London summer Olympics. Nine managing director Jeffrey Browne has previously said the net value of the Olympics would be in excess of $140m.
With production costs, the loss could be up to $30m.
Nine declined to comment to the newspaper yesterday.
But Foxtel, which was still selling sponsorship packages less than three weeks before the opening ceremony was less reliant on ad revenue.
“Our principal motivation is new subscribers, subscriber retention and getting subscribers to upgrade to sports packages,” a spokesman for Foxtel said.
Meanwhile there is further speculation that the rights to 2016 Rio may be won by Seven because Nine has greater financial problems to repay debt.
Share
- Tagged with Olympics
3 Responses
I hope Channel 10 or even partner up with SBS alongside Ten
Remember: Foxtel will be a major player in the negotiations for 2014/16 Olympics, esp. now they have Austar under the Foxtel banner.
Don’t be surprised if the FTA rights holder for the next period, is offered a deal, whereby Foxtel produces their coverage and shares commentary teams.
Also: whoever gets 2016 Olympics FTA rights, will likely be out of the race for 2018 Commonwealth Games host broadcasting rights.
Hopefully 7 get the rights to Rio 2016 and they bring back Roy and HG!