NBCUniversal Expects 'Most Profitable Olympics'

NBCUniversal is expecting a massive advertising revenue boost from the Summer Games in Tokyo, with one executive saying it could be its most profitable Olympics yet, reports the Philly Business Journal.

NBCUniversal CEO Jeff Shell discussed Philadelphia-based parent company Comcast Corp.'s outlook for broadcasting the Summer Olympics, as well as Super Bowl LVI and the Beijing Winter Olympics in February. Speaking at Credit Suisse’s annual Communications Conference this month, Shell expressed optimism about ad sales for the massive sports events thanks to strong sales for the upcoming 2021-2022 television season.

“Depending on how ratings are, it could be our most profitable Olympics in the history of the company,” Shell said.

NBCUniversal is close to wrapping up its negotiations for upfront advertising, or advertising for the entire television season, he said, and it was the strongest season the company has seen. Demand and pricing were strong, Shell said, with advertisers vying for audience as more people switch to streaming or other platforms not supported by ads. Advertisers are clamoring for reach, and ad-supported platforms like NBCUniversal's Peacock streaming service and Comcast’s broadcast television are hot commodities, he said.

Shell expects the strong demand for advertising to bleed into some of the world’s biggest sports events, including the Olympics and Super Bowl. 

Olympics television ratings in the U.S. are driven by the success of the U.S. Olympic team, Shell said, and could be bolstered by gold medal-winning gymnast Simone Biles’ appearances, the swim team, and track and field. Traditional broadcast audiences still make up the vast majority of viewers, but regardless of what the company does, that audience will continue to decline, Shell said. 

With 42 million users since its launch year, Peacock will be “critical” to reaching audiences who migrate away from traditional television toward streaming, as well as to reaching advertisers as the platform grows to new countries, he said. NBCUniversal will continue to make content for traditional television networks alongside Peacock, offering some exclusives on the streaming platform as well, he said.