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

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.

Media commentators believe the deal represents reasonable value for money for Seven. While the time difference between Rio and Australia is not ideal – many live events will be broadcast in the early hours of the morning – Tokyo and South Korea are more favourable for advertisers.

“The IOC wanted more money but the interest just wasn’t there. The IOC had to come back to Australia two or three times,” Fusion Strategy chief executive Steve Allen said. “Seven will be able to make money on the deal,  and possibly quite good money.”

While it is unclear whether the deal extends across all platforms, Allen predicted that Seven would have secured the rights for digital and mobile as well as TV.

It is also uncertain whether Seven will look to on-sell any rights, although a spokesman for Foxtel told Mumbrella it was “always interested” in content discussions but stressed it had no particular ambitions to broadcast forthcoming Olympics.

“They may well have conversations with Foxtel,” Allen said.

Seven has not responded to a request for comment at the time of publication.

Steve Jones




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