New York Post

A GAMES OF RISK

NBC betting big on problemati­c Olympics

- By ALEXANDRA STEIGRAD

NBCUnivers­al is hoping that Americans will soon be talking about goldmedal-worthy Olympic vaults by Simone Biles and winning goals by soccer star Megan Rapinoe — not the coronaviru­s pandemic.

As the official broadcaste­r of the Summer Olympics, the Peacock Network is facing numerous threats that stand to make this year’s Games a ratings dud. And that would be bad for business, including NBC’s new streaming service.

“If I was an executive at NBC right now, I’d be hoping that the Olympic Games No. 1 start and No. 2 get to completion,” said LightShed Partners analyst Rich Greenfield. “This is certainly not going to be the Olympics NBC was hoping for.”

The Olympic Games are set to open on Friday in Tokyo as the pandemic continues to ravage countries around the world. On Monday, Japanese carmaker Toyota said it would be pulling its Olympics ads in Japan amid a nationwide backlash to the Games being hosted during a state of national emergency. Other negatives include a ban on spectators and a steady drumbeat of athletes contractin­g the virus and in some cases dropping out.

Over 70 athletes have contracted the virus in Tokyo so far, including fan favorites like tennis player Coco Gauff, who pulled out of the global event earlier this week.

Without star athletes, ratings stand to suffer. And while NBC has already locked in over $1 billion in Olympics ads, poor ratings threaten to create a domino effect for other revenue streams.

Low ratings could dampen new sign-ups to Peacock, the company’s all-important streaming service, which is providing live coverage, replays and special programmin­g of the Games, analysts said.

Sagging viewership could also reduce ad spending on NBC shows leading into the Olympics or following the broadcast, experts said.

“We’re starting to lose spectators and athletes. How big is this problem going to get?” said Greenfield, who noted that Olympic 2021 ratings could fall to 20 million, sinking below the weak ratings of 25 million NBC hit in 2016 for the Games held in Brazil.

Other experts have estimated even more meager viewership of 17 million, citing the 13-hour time difference and the lack of pregame promotiona­l ads from the network.

NBC paid the Internatio­nal Olympic Committee, which holds the media rights to the Games, $4.4 billion for the four Olympics spanning 2014 to 2020, and another $7.75 billion for the next six Games running 2022 through 2032.

Prior to the pandemic halting the Games last year, NBC said it sold $1.25 billion in advertisin­g tied to the event. With the event now reschedule­d for 2021, NBC has not publicly updated its figures but recently said it expects to exceed ad sales from the Rio Games, which came in at $1.2 billion.

Adding to NBC’s woes, the pandemic continues to spread in Japan, where only 20 percent of the population is fully vaccinated. According to Reuters, Japan has been averaging over 3,000 new infections a day.

As a result, the IOC instituted numerous on-site measures, including banning spectators, social distancing for everyone else and enhanced cleaning protocols. NBCU chief executive Jeff Shell has downplayed the measures, opting instead to be a cheerleade­r. The CEO recently predicted the Games could be “our most profitable Olympics in the history of the company,” which has broadcast the event 15 times already.

 ??  ??

Newspapers in English

Newspapers from United States