Kukla's Korner Hockey
by Paul on 06/09/11 at 05:41 PM ET
from Mike Ozanian of SportsMoney at Forbes,
Comcast will of course show more Olympic events on more networks than NBC did when it was owned by General Electric, boosting advertising revenue. And new media digital outlets will also increase advertising revenue. Combined, the additional distribution and digital outlets will generate more than an additional $300 million in revenue. More than enough to cover the $223 million loss NBC had on the last Olympics.
But the real key is Versus and subscription fees plus subscriber growth. Comcast will be able to sign up more cable ops to carry Versus and it will have sufficient leverage to generate higher subscription fees.
Walt Disney-owned ESPN gets about $4 per subscriber per month, mutliples of what Versus receives (my analyst did not have the exact Versus numbers in front of him but when he gets them I will add them). If Versus added 20 million subs for, say, a total of 90 million, and charged an additional $2 per month, it would generate $140 million per month more from existing subs. Plus, roughly $60 million more from the new subscribers. That would mean a total of $200 million a month, or over $2 billion per year.
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