NBC Sports Loses $225 Million From Winter Olympics
The Associated Press reported Friday that NBC sustained $225 million in losses stemming from its coverage of the Winter Olympics from Vancouver in February.
The figures are in keeping with estimated losses the network projected before the Olympics, and somewhat dampen the news that NBC and its parent company, GE, took in $800 million in revenue from Vancouver. However, those revenues were swallowed by production costs as well as the $820 million in rights fees NBC paid to the International Olympic Committee.
Overall, ratings from Vancouver were up 14 percent from those of the 2006 Winter Games in Turin, Italy, but NBC's losses may put a crimp in the projected rights fees for the 2014 Winter Olympics in Sochi, Russia, where production costs are expected to be higher than for Vancouver. Also, the eight-hour time difference between the Russian resort city and New York is expected to make the 2014 Games less attractive than the 2010 Olympics.