CBC says it will ‘break even or be profitable’ with Olympics rights

CBC/Radio-Canada will “either break even or be profitable” with its exclusive Canadian broadcast rights to the Sochi 2014 and the Rio 2016 Olympic Games, Jeffrey Orridge, executive director of CBC sports properties, said in an interview. In a release Wednesday, CBC and the International Olympic Committee (IOC) said the public broadcaster secured the exclusive Canadian broadcasting rights to air the 2014 and 2016 Games in French and English. Orridge said in a phone interview that he could not disclose what CBC paid to obtain the rights, but said the broadcaster’s bid was “both respectful of the stature of the Games and fiscally responsible.” He added that CBC's submission to the IOC was “prudent” and ensures that its broadcasting coverage will be cost-neutral. CBC and BCE Inc. said in June they abandoned a partnership for the rights, through which the broadcasters submitted two joint bids. One of those bids, which the International Olympic Committee (IOC) rejected, was under $77 million, The Globe and Mail reported in January. Bell, Shaw Communications Inc., and Rogers Communications Inc. subsequently said they would not pursue the rights, and CBC told The Wire Report in July it would continue to bid for them on its own but would not make a money-losing bid. Brian Schecter, a media analyst and president of consulting firm Puddle Duck Productions, said in an interview that CBC was in a good position to acquire the 2014 and 2016 Olympic rights as it found itself in a buyer’s market after its main competitors, Rogers and Bell (owner of CTV) withdrew. “The IOC had no choice but to award them,” Schecter said. He said the IOC had to award the 2014 and 2016 Olympic rights to someone that could broadcast the Games to as wide an audience as possible, which eliminated the possibility of smaller players. “They don’t have the distribution as of yet,” Schecter said of smaller or emerging players like online entities. “I don’t think the IOC was prepared to take a chance on that blowing up in their face.” Schecter said the question of whether CBC can make the Games profitable will depend on how much the broadcaster paid to acquire them. Schecter said he heard from sources that CBC's bid for the rights ranged between $70 million and $80 million. Securing the rights is a “terrific move” for CBC, he said, which is particularly good for its sports department. “When they lost the Games for Vancouver and London, there’s lots of people that invested a lot of time in their Olympic lines, from a production point of view and their marketing point of view,” Schecter said. “Then that was taken away from them, and there was a big hole in their workload. This is good for them.” The IOC awarded the Canadian broadcast rights for Vancouver 2010 and London 2012 to CTV, with Bell and Rogers offering a winning bid, as a consortium, of $153 million US. Rogers’ stake in the Olympic bid was 20 per cent and Bell’s 80 per cent. “We look forward to CBC/Radio-Canada building upon the high standards and expectations that we have established in Vancouver and London,” Kevin Crull, president of Bell Media, said in a release Wednesday. Orridge said opportunities like the Olympics generate more work in the broadcast sector, which keeps more people employed. “I think this is great for everybody,” he said. In April, CBC announced it was cutting 650 positions to deal with funding cuts in the Conservative government’s 2012 budget that will reach $115 million annually by 2014-2015. “I think this is really important, not just to CBC and the people that work here, but it’s important to the Canadian public because of everything that’s been going on,” Orridge said. “We’ve been the topic of conversation for a long time based on the federal budget reductions and how it’s hit our bottom line. This is great.” Heritage Minister James Moore's office said it had no comment on the announcement. Orridge said CBC will aim to provide Olympic distribution on all platforms, such as through an app, live streaming, or social media platforms. “Our own experience, in addition to that of our future sub-licensees, will be able to deliver a full Olympic experience for 2014 and 2016,” he said. Orridge said CBC's discussions about a possible Olympics mobile app and mobile content development have just begun. “I anticipate that within the next 30 to 90 days, there will be more information regarding exactly what our plan is, as it relates to the digital space and other sub-licensing partners,” he said. Orridge said people across CBC's English and French-language departments are in a state of “exuberance and ecstasy” as a result of the announcement. He said CBC’s sports department is “extremely excited” about the prospect of working on an “incredible brand and an incredible sports experience.” “It provides them with the opportunity to do what they came here to do, which is create exceptional sports experiences for broadcast,” Orridge said. He noted CBC has secured the bid, without a partner, as the exclusive media rights holder to the Games. In its release, CBC said it has broadcast the Olympic Games 19 times over 60 years, including the Beijing Summer Games in 2008. Schecter said the Olympic rights will mean a return for sports to Radio-Canada, whose programming has not played a major role in the broadcaster’s sports. dgrenier@thewirereport.ca

CBC says it will ‘break even or be profitable’ with Olympics rights

Broadcast | August 1, 2012

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