Olympian Economics<< Teen Choices | Main | Office as Platform: One, More, Time >> David Card | August 13, 2004, 08:53 AM NBC hopes to make $50 million by selling $1B worth of advertising on the summer Olympics, according to the Times. Back in 2002, it was hoping to make $60-75 million on that year's Winter Olympics. That year, it spent $545 million on the rights, and $110 million on coverage. Add in the profits and you get $730 million in revenues. So in 2004, the summer games might give NBC a 5% margin. The winter games in 2002 might have produced a 10% profit. Yahoo made $237 million on total sales of $1.6 billion. That's 15%. It had $1.2 billion in ad sales, and advertising is a little more profitable than its services business. Still, let's leave margins at 15%. That's $175 million in profits. Sure, the Olympics are a good promotional platform for NBC's shows and networks. But so is a successful portal. Don't you think NBC wishes it had one? |
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