The Business of the 2024 Paris Olympics
NBC’s Peacock Secures a Gold Medal in Viewership
Although far from the 2024 Olympics medal ceremony, NBC’s Peacock has already secured a gold medal in viewership numbers. The Olympics opening ceremony drew significant attention, marking a successful start for NBCUniversal. Read more about the business of the 2024 Paris Olympics.
NBCUniversal’s presentation of the opening Saturday of the Paris Olympics competition on NBC, Peacock, and across crucial NBCU platforms posted a Total Audience Delivery (TAD) of 32.4 million viewers, according to custom fast national data from Nielsen and Adobe Analytics. This figure topped the opening Saturday of competition for the Tokyo Olympics by 83%, with 17.7 million viewers across all platforms.
High-Profile Events and Primetime Success
The broadcast featured high-profile events such as Caeleb Dressel and Simone Manuel anchoring gold and silver medal-winning 4x100m freestyle relays, Katie Ledecky winning bronze in the 400m free, and victories for the U.S. men’s soccer team, beach volleyball, diving, and men’s gymnastics qualifiers.
The afternoon’s live coverage was followed by a primetime presentation, continuing the momentum from Friday’s Opening Ceremony, the most-watched Summer Olympics since 2012, with 28.6 million viewers.
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Peacock’s Streaming Success
Peacock led the streaming efforts, with 4.7 million viewers streaming Saturday’s coverage across NBCUniversal digital platforms. This marked Peacock’s second-best day in engagement, behind only the Peacock AFC Wild Card Exclusive, the most streamed event in U.S. history.
These viewership numbers demonstrate NBCUniversal’s success in capturing a broad audience and the increasing importance of digital streaming in Olympic viewership.
Canadian Viewership Surge
The Paris Olympics opening ceremony also saw a massive ratings jump in Canada compared to the numbers for Tokyo and Beijing. CBC reported that over 13.3 million viewers watched at least part of Friday’s ceremony on CBC, TSN, Sportsnet, and RDS, while an additional 1.9 million streamed it online.
The four-hour show featured about 6,800 athletes traveling down the Seine River on dozens of boats in the pouring rain, culminating in a grand finale with Celine Dion staging a career comeback with a spirited performance from the Eiffel Tower. CBC’s average viewership increased by 33% compared to the Tokyo 2020 opening ceremony and 36% over Beijing 2022, both constrained by COVID-19 restrictions. This surge in viewership highlights the renewed enthusiasm for the Olympics and the successful engagement strategies employed by Canadian broadcasters.
The Most Bet-On Olympics Yet?
Critics claim this will be the most bet-on Olympics yet, driven by three main factors: the increased legalization of sports betting in numerous countries, the availability of online betting platforms, and the growing interest in Olympic sports due to enhanced global coverage and marketing.
The legalization of sports betting in several regions has opened new opportunities for fans to engage with the Olympics in a financially invested manner. The proliferation of online betting platforms has made placing bets from anywhere more accessible, increasing overall participation.
Additionally, the extensive marketing and coverage of Olympic events have heightened interest and awareness, encouraging more people to bet on various competitions. This trend reflects a significant shift in how audiences interact with the Olympics, turning spectatorship into an interactive and financially engaging experience.
Economic Perspective
From an economic perspective, Paris budgeted about $8 billion for the 2024 Olympics when it won its bid in 2017. The city has since increased its budget by several billion dollars.
According to an S&P Global Ratings analysis, the costs are split relatively evenly between operating expenses and new infrastructure.
Paris will host the cheapest Summer Games in decades if the final cost stays in that ballpark. This budget management demonstrates Paris’s commitment to financial efficiency while delivering a world-class event. The focus on balanced spending between operations and infrastructure ensures that the benefits of the Olympics extend beyond the event itself, potentially providing lasting improvements to the city’s facilities and transportation systems.
Hosting a cost-effective Olympics also sets a new benchmark for future host cities, emphasizing the importance of financial prudence in large-scale international events.
Sponsorship Dynamics
Sponsorship deals are crucial to the business dynamics of the Olympics. Flavor Flav signed a five-year sponsorship deal with the USA Water Polo Women’s and Men’s National Teams, highlighting Olympic sponsorships’ diverse and high-profile nature.
The broadcast and streaming media rights for the 2024 Olympics are expected to reach $3.3 billion, a 6% increase over the last event. According to research by Ampere Analysis, sponsorship revenue is growing faster, with the Summer Olympic Games on track to reach its $1.34 billion sponsorship revenue target.
Securing $1.34 billion would represent a 60% increase in sponsorship revenue compared to the Tokyo Olympic Games of 2020, ten times the growth rate in media rights revenue over the same period. This significant increase in sponsorship revenue underscores the value brands see in associating with the Olympics.
The ability of the Olympics to attract high-profile sponsors and secure lucrative media rights deals demonstrates its enduring global appeal and commercial viability. This trend is likely to continue, with more brands seeking to leverage the extensive reach and prestige of the Olympic Games.
