August 23, 2008
NBC Didn't Cash In on Olympics Video
NBC's decision to limit the amount of Olympics footage on its Web site has ticked off sports fans, reports the The Wall Street Journal. But that decision could also dog the network in another way: NBCOlympics.com will generate just $5.75 million in video-ad revenue from the Games, according to estimates from research firm eMarketer Inc.
"At a time when video ads are starting to catch on, analysts say NBC had an opportunity to make a lot more money had it offered more online content during the Games.
CBS Sports, by contrast, streamed all of the NCAA's March Madness basketball-tournament games live earlier this year and made $23 million in ad revenue, the CBS Corp. network says. (The basketball tournament lasted three weeks, while the Olympics runs over two weeks.)
NBC limited its potential for ad revenue in a number of ways, industry analysts say. To provide a measure of exclusivity for its TV advertisers, it chose not to make available live video for some of the Games' highest-profile events. The network failed to distribute its videos widely on other sites, which would have boosted its audience."
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