baron-pierreIV Posted October 18, 2013 Report Share Posted October 18, 2013 (edited) For Moscow 1980, NBC took out cancellation coverage with Lloyds for $4.5 mil to cover their $87 million rights fee then. When the US bailed out, that premium is about what NBC lost for their 1980 attempt. They nearly got their $87 mil investment back. Since then, the US networks' contracts w/ the IOC have some "guaranteed nights' numbers' wherein the IOC guarantees the network certain viewership numbers based on the content -- which is why, the IOC can reschedule the highly watched certain swimming and T&F finals to suit NBC. And if the competition sked changes and NBC does not meet its contracted viewership rates, the IOC reimburses NBC on those certain days. (The 'guaranteed nights' numbers are those nights which fall in Sweeps week.) Networks use the data Nielsen gathers during each period to set local advertising rates; national rates, which comprise the bulk of TV ad revenue, are set separately and based on year-round data from select families. Still, local ads are a big chunk of a TV network's revenue, so when sweeps week — er, weeks — roll around, they try and game the system by doing just about anything to make sure you tune in.Read more: http://content.time.com/time/arts/article/0,8599,1883157,00.html#ixzz2i6JxBSG1 I am sure the FIFA contracts are constructed on similar terms. And I hope Fox (and the other networks) have taken out their own cancellation insurance with Lloyds. An explanation of "Sweeps week:' http://content.time.com/time/arts/article/0,8599,1883157,00.html Edited October 18, 2013 by baron-pierreIV Quote Link to comment Share on other sites More sharing options...
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