Summer Olympics 2016 will take place in Rio De Janeiro later this year in August and IOC (Olympic committee) has signed up all the possible lucrative TV rights deal around the world for Summer Olympics and in some cases for next two four-year Olympic cycles. TV rights money makes up around 70% of the revenue generated Olympics. IOC usually sign at-least 4 year deal with media companies around the world and both winter Olympics and summer olympics are bundled in that deal. Before we get into how much Top broadcasters are paying for live rights we take a look at how does the “Olympic Games cycle 2013 to 2016” works.
Olympic Games Cycle 2013-2016: The current games cycle started after the London Olympics which took place in 2012. IOC invited bids for TV rights deal from around the world for 2014 Winter Olympics and 2016 Summer Olympics. IOC usually award tv rights deal to companies who are willing to big for both winter and summer olympics specially in the lucrative zones like USA, Europe, Australia, Canada etc. For example American channel NBC paid around $7.65 billion to for the next three olympic games cycles till 2032. Thats around $1.275 billion for each of the next 6 olympic games.
How much Tv Companies are paying for Broadcasting Deals for Olympics 2016:
There is a massive 52% increase in total tv rights money for Olympic games cycle 2014 and 2016. Thats largely down to IOC selling rights in new markets around the world and increase in rights value in lucrative markets like USA, Europe etc. lets take a look at top broadcasting deals for current Olympic cycle.
|RIGHTS HOLDER||COUNTRIES||RIGHTS FEE|
|NBC||United States||NBC signed new deal in 2012 worth $4.4 billion for 2 olympic games cycles till 2020. (thats $880 million per game)|
|European Broadcasting Union||Europe||In Europe Olympic games are aired on national territorial channels and all countries contribute to “European Broadcasting union” for example BBC will be paying around $150 million for each Olympic game with their current deal till 2020 and than share broadcasting with Discovery for 2022 winter and 2024 summer olympics|
|TSN, RDS, SportsNet||Canada||Canada’s Olympic Broadcast Media Consortium where two major canadian networks combine to share broadcasting rights of Olympics will be paying $160 for every olympic games|
|Seven Network||Australia||Seven Network signed rights deal with IOC worth around $170 million for next two Olympic cycles including 2016 rio games till 2024.|
|Japanese Olympic Consortium||Japan||$1 billion will be paid to IOC in a deal signed by Japanese Consortium which include channels like (NHK, NTV, TV Asahi, Fuji TV, TBS, TV Tokyo) from 2016 to 2024.|
|Globo, Rede Record||Brazil||Globo signed a Olympic deal with IOC alongside two other Brazilian networks called Rede Record and Banderiantes for 2014 and 2016 olympics worth $150 million. Globo is signed and exclusive longterm deal with IOC from 2016 to 2032 for $600 million.|
|CCTV||China||CCTV china has exclusive rights for 2014 winter and 2016 Summer games in a deal worth $160 million. CCTV has also secured Olympics rights in china through 2024 in a deal worth around $400 million.|
|Asia-Pacific Broadcasting Union||Pakistan, India, Bangladesh, Indonesia, Malaysia||Just like the european broadcasting union, in Asia Pacific national tv channels contribute to make a Asia Pacifict broadcasting union and they paid around $10 million for 2014 and 2016 olympics games.|
|Sky NZL||New Zealand & Pacific region countries||Sky NZ signed a massive olympic deal to cover broadcasting rights in New zealand as well as pacific region countries in a deal worth $10.5m each Olympic cycle till 2024.|
|Latin ESPN||South America countries (excluding Brazil)||Apart from Brazil who has its own tv rights deal with IOC, ESPN signed a deal for tv rights coverage in Latin america from 2014 and 2016 olympics in a deal worth $10.5 million.|