Seven West Media has already booked $90 million in revenue for the Tokyo Olympics broadcast event.
CEO James Warburton, appointed in August last year, says ten sponsors have signed and another two are close.
“I think we've written close to $90 million of revenue already into the Olympics,” he says. “It's quite a significant event for us.
Analysts say costs will be between $60 million and $70 million incremental impact on the P&L.
Seven’s coverage will be led by Channel 7 and 7TWO, with up to 40 live streams of every sport available on 7plus.
Tokyo 2020 in July is expected to attract big audiences because Japan is in a favourable time zone, only one hour behind Australia’s eastern states.
Seven expects to reach more than 20 million Australians through its broadcasts and five million online, more than any other games including Rio 2016 and Sydney 2000.
In its half year results, Sevcen West Media wrote down $51.8 million in “onerous” contracts, mainly for cricket broadcast rights.
The company had previously written down the Olympics broadcast rights which it won in 2017 for an undisclosed sum, reported to be between $150 million and $170 million.
A note in the half year financial statements: “The group has recognised an onerous contract provision in relation to a number of specific non-cancellable purchase contracts for television programs and sporting broadcast rights. The majority of the provision relates to legacy output deals for US content and the Tokyo Olympics. The onerous losses arise over the next six years aligned with the expected broadcast date of the programs and events.”
Sport is a driver of free-to-air audiences in Australia but analysts say the cost of broadcast rights has hit a ceiling with many media owners questioning the value.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.