Cette semaine nous partageons avec vous le point de vue de nos collègues de Toronto sur la couverture des Jeux olympiques de Vancouver.

POV: OLYMPIC BROADCAST UPDATE

Background

The Winter Olympics will run from February 12th to 28th. Press coverage and hype is growing daily. As the rights holder CTV has developed the most comprehensive multi-platform packages we have ever seen. Coverage and advertising opportunities are limitless.

To win the Canadian games CTV (in alliance with Rogers) had to commit to both Vancouver 2010 & London 2012 through a bidding process. Vancouver rights alone cost $90M, 321% increase from what CBC paid for the 2006 Winter Olympics in Turin. The London 2012 games went for $63 million, an increase of 140%. This is the first time more money was spent for Canadian rights on winter versus summer Olympics.

Implications

As most Canadian prime programming is simulcast with the US and the Olympics fall during US February sweeps, Canwest and Rogers will be broadcasting regular ABC, CBS and Fox programming complete with new episodes and finales. CTV will air their top ranking US programs on the A Channels (eg CSI, American Idol, Criminal Minds etc). CBC will air regular programming in repeat, as there will be no Hockey they will air Raptors and movies instead, this is the weakest competitive schedule.

Historically both Summer and Winter Olympic TV viewing increases across all major demographics. The 2006 Winter Olympics saw Average Minute audiences for Adults 25-54 increase 14% over-all during the games, driven by the rights station (CBC) increasing 368%. When Olympic broadcasters are deleted from the calcution regular program viewing remained flat. In short big events such as the Olympics draw viewers to TV.

NBC reports sluggish Olympic ad sales coupled with an increase in rights costs resulting in them (NBC) losing money on the Olympics. We believe the same holds true in Canada.

Agency Point of View

Despite the financials of broadcasting the Olympics in 2010 pretty much guaranteed to be a money losing proposition, the event will be good for Canadians and for media usage. Although it concerns us that CTV may irritate some viewers with such voluminous coverage of the games resulting in lower than estimated audiences, this could be an opportunity for CTV’s competitors.

Our estimates show that whether you are able to participate in the Olympics or have planned weight around the event prudent program selection ensures audience goals will be delivered.