TV giant sprinting to Olympic glory

AMERICAN television network NBC's gamble that it could sell $1bn (£549m) of advertising to make a profit on the Olympics looks like paying off.

Provided viewers tune in to its 1,200 hours of coverage across seven channels, NBC, owned by conglomerate General Electric, says it is on track to hit sales targets and make $50m profit from the sporting extravaganza.

Despite saturation coverage - for the first time, every sport will be featured - viewers are not guaranteed.

The Sydney Games were a ratings dud because NBC passed on live coverage for primetime highlights that in some cases were shown a day after the event.

This time there will be plenty of live coverage on its affiliated networks such as Bravo, CNBC and MSNBC, and the flagship channel will then package highlights for that evening's prime time.

Despite security worries, drug scandals and concerns over Athens' readiness, NBC has been able to persuade an eclectic group of advertisers to pay $739,000 for a 30-second primetime slot.

That is a record for the Olympics but is about only a third of the price for a slot during the National Football League's annual SuperBowl, the nation's premier advertising vehicle.

John Rash, senior director of broadcast negotiations at Campbell Mithun advertising in Minneapolis, said the Olympics offers a unique dynamic for advertisers.

'The Games often appeal to those who spend the least amount of time watching television, so here's a rare opportunity to reach them,' he said.

General Motors is the biggest spender. The carmaking giant will launch 10 new commercials and take 200 slots for its blue-collar Chevrolet brand. It will spend 10 times more on advertising during the games than during a typical two-week period.

AT&T, Visa USA, Anheuser-Busch, Coca-Cola, Honda, McDonald's, and Eastman Kodak are among the other big-name advertisers.

Earlier this week, NBC said it had sold 98% advertising capacity and is expected to hit 100% by tonight's opening ceremony.

To capture viewers immediately, it is banking on a gold medal on the first day of competition from US swimming superstar Michael Phelps, which would give the Olympics the jingoistic boost needed to keep American viewers and advertisers happy.

Swimming and gymnastics dominate the first few days and America expects a big medal haul in these events.

NBC paid $793m for broadcasting rights. The European Broadcast Union paid an estimated £408m to win rights for the BBC and a pool of Continental TV companies.

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