Monday, 19 October 2009

Rio 2016: broadcasting rights were sold months ago

According to the official Rio 2016 website, it was as long ago as 27 August that the International Olympic Committee (IOC) awarded the broadcast rights for the 2014 (Winter Olympics) and the 2016 Games to a consortium of three prominent media organizations in Brazil led by TV Globo. The agreement, valued at over US$210 million [US$170 million rights fee and a further US$40 million minimum promotional media package commitment] is "said to have established a new benchmark in rights valuation and confirms the robust and diverse nature of the Brazilian economy while also making Brazil the third largest broadcast market for the IOC". The website adds:
"The IOC tendered the broadest media rights package ever offered to the Brazilian market combining broadcast – both free and pay – broadband, internet and mobile. The combination of offers from Globo, who won the main tender, and Bandeirantes and Record led to a 12-fold increase in rights fees for the Brazilian market since 2008 – a validation of the strength of the Brazilian advertising and sponsorship market. In addition, the proposals from the broadcasters will mean a quantum jump in coverage and broadcast hours for the Olympic Movement in Brazil, a testament to the widespread enthusiasm felt across the nation for the Games".
Are the sums in question too high? The consortium which has secured the rights must have done its homework in terms of calculating likely licensing and advertising income, but the big unknown is the extent to which the technology in 2014-2016 will enable the bidders to control their rights.

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