Seven’s rumoured $200m Olympic deal ‘good value’
The Seven Network is poised to announce it has secured the rights to broadcast the next three Olympics in a deal reportedly worth $200 million, a price which media analyst Steve Allen said means they should be able to make money on them.
Today The Daily Telegraph reported Seven has inked a deal with the International Olympic Committee (IOC) to cover the Rio Olympics in 2016, the Tokyo Games four years later and the winter Olympics in South Korea in 2018.
It is believed Seven was the only network to bid for the rights, with the IOC having to settle for $50m less than the original asking price after Nine and Ten withdrew their interest.
The last summer Olympics, in London in 2012, was broadcast by Nine and Foxtel who tabled a joint bid worth $120m, which also covered the 2010 winter games in Vancouver. Seven last held the rights for the Olympics in 2008.
quite speculative – who knows what tv advertising will look like / return in 2020?!
You would have to assume that they also included digital rights in the deal. With media consumption habits evolving at such a quick pace, as well as VOD finally gaining momentum in Australia, the media landscape will be verrrrrrrrrry different in 2020!
Overall viewer numbers for the Olympics have been declining since 1992. It’s not the big tv drawcard it once used to be during the 1970s and 80s. In 2020, who knows how many will watch but I suspect Seven network will be lucky to break even.