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2014 Sochi Winter Olympics: What NBC Has in Store for Us

Feb 7, 2014

The 2014 Winter Olympics are under way in Sochi, Russia.

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The 2014 Winter Olympics are under way in Sochi, Russia.  Don’t worry about missing your favorite sport or athlete this time, though.  NBC Universal purchased the exclusive broadcast rights to the Olympics for $775 million. Now they are producing more Olympic coverage than ever before.  In total, NBC plans to produce an estimated 1,539 hours over 18 days.  That’s about 64 days worth of coverage.  For comparison, during the 1976 Winter Olympics in Innsbruck, Austria, ABC produced 43-½ hours of coverage over 12 days.  NBC’s unprecedented feat is achieved through implementing a multi-platform, multimedia coverage system.  Here at BMG, we’re so excited about the 2014 Winter Games that we’ll be covering it ourselves. In fact, you can view a live stream of the Opening Ceremonies below beginning at 7:30pm EST tonight.  Over the next two weeks, we’ll be spotlighting the innovation, creativity, and technology that are being used during the Sochi Olympics.  So let’s get to it.

The New Era

The conventional methods of covering the Olympics are now over.  With social media outlets growing exponentially every day, NBC had to make sure to integrate these platforms into their coverage.  During the London Olympics in 2012, NBC had partnered with Facebook to deliver exclusive online content. This time around, NBC has partnered not only with Facebook, but also with Twitter to create a central hub for viewers to discuss the games.

NBC has also made a historic change in the way it covers the Olympics in hopes of catering to people living in the fast-paced, seamless digital era. For the first time ever in Winter Olympics history, NBC will stream live coverage of all competitions. All you need is a simple verification that you have a subscription to a cable, satellite, or telecommunications provider.  Smartphone and tablet users will be able to watch all live coverage on their devices with apps like NBC Sports Live Extra.  This is a big change for NBC! The media mogul streamed 400 hours of minor competitions like curling and ice hockey during the 2010 Winter Olympics in Vancouver.

In addition to the $775 million NBC spent for the broadcast rights, they dropped around $100 million in production costs.  But the revenue generated from ad sales alone during the Winter Olympics is speculated to be around $1.05 billion.  The most notable difference from previous Olympic ad sales is the rise of digital ad buying. “[In Beijing] it was hard to get advertisers to buy into a digital website. You had to leverage TV assets in order to do it,” said Rick Cordella, senior vice president and general manager of digital media for NBC Sports Group.  “As you move forward now, it’s a bigger piece of the media pie.” The revenue from digital ad sales is estimated to be around $50 million (about 5% of the estimated revenue), as TV commercials remain the biggest piece of the pie. However, this figure will only grow as the digital viewership grows.

Who benefits from expanded Winter Olympics coverage?

Everyone. NBC wins because they succeeded in bringing innovation and creativity so that consumers can enjoy more content. Not to mention racking in a ton of money from ad sales.  The advertisers win because they have more platforms to showcase their products and services to the consumers.  The consumers win because they are able to get more in-depth coverage, which may raise their interest in non-major sports.  And the athletes win because they get more overall exposure with increased viewership and coverage. This could potentially lead to new sponsorship deals and endorsements.

We’re not sure we’ll be able to catch all 1,539 hours of coverage but we encourage everyone to tune into the innovative coverage provided by NBC. Leave feedback on what you were most impressed with as we continue our own unique coverage on 2014 Sochi Winter Olympics.

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  • Andrew Ryback Reply
    2018-03-07 21:55:41

    We're glad you found this to be useful, Margaux. Let us know if there's anything we can help with.

  • Margaux Ford Reply
    2018-03-07 05:57:06

    I appreciate the tips on hiring a production staffing company to have more time to focus on the creative aspects of the project. Hiring a production crew is a tedious task, and can take up much of your time. We're currently working on a huge production, and I'll share this article with my boss so he'll consider on delegating the recruitment to a staffing company. I like that you mentioned that staffing company can ensure to have the right team onboard for the project. Thanks!

  • Robert McWilliams Reply
    2017-10-31 19:05:18

    Todd:I have an ad agency in addition to our production company. We put one of our clients on OTT two months ago up in Nevada. Seems to be working!Thanks again for the work earlier this month.Rob

  • Nicole Rohde Reply
    2017-05-27 22:28:45

    Hey Andrew, Any word as to whether or not the Jokers will be back for Comic Con this year? Please let me know. Thanks!!!

  • Aaron Estabrook Reply
    2017-02-23 16:26:57

    I'll be tuning in for sure!

  • David Patton Reply
    2015-01-16 13:16:02

    Interesting blog post Andrew. For those who are nearly ready to cut the cord, but still want access to key channels such as ESPN, I'd recommend checking out Dish Network's new service, Sling TV. It provides access to a handful of channels for $20/month.https://gigaom.com/2015/01/15/sling-tv-details-price-devices-networks-resolution-bandwidth/

  • Andrew Ryback Reply
    2015-01-13 14:44:19

    Go for it! I'll admit that I was a little apprehensive about pulling the plug at first, but honestly, the transition away from DirecTV has been seamless. The only missing link is live sports, but there are a few work arounds depending on what sports you watch. Good luck!

  • Gregory Hart Reply
    2015-01-13 06:35:00

    While I am part of the 55 year old demographic that still has TV boxes and does TV viewing, I do my viewing using DVRs and networked PCs playing video files from an in-home server. I too have noticed that I view a handful of shows on a regular basis and have found various other sources for these shows. And now it has gotten to the point to where I am seriously considering ending my very long relationship with DirecTV and going streaming. Working in the TV industry also helped to open eyes to this as well. This transition from "old" TV is coming and the networks (Les Moonves, I am looking at you!) had better plan for it.

  • Gary Reply
    2013-08-08 09:44:39

    You've left out a HUGE part of this story by not mentioning Howard Stern's effect on the Sharknado buzz! #siris-ly

  • Marybeth Harrison Reply
    2013-08-07 14:46:29

    I can almost hear the theme song from Jaws as I read your post!