Eurosport chief executive Peter Hutton has said sublicensing fees will cover 70 per cent of the cost of the pan-European sports broadcaster’s acquisition of rights to the Olympic Games.
US media and entertainment company Discovery Communications, and its subsidiary Eurosport, in June acquired television and multi-platform rights in a host of European markets for four editions of the Olympic Games, from 2018 to 2024, in a deal valued at €1.3bn ($1.46bn).
Discovery has acquired the exclusive rights across all platforms, including free-to-air television, subscription/pay-television, internet and mobile phone in all languages across 50 countries and territories on the European continent.
Speaking at Discovery’s first investor day in New York yesterday (Wednesday), Hutton outlined the company’s strategy to grow the Eurosport brand, expand its audience and reach, along with how it will seek to leverage sports to meaningfully drive revenue across the entire portfolio.
Focusing on Discovery’s acquisition of the Olympic Games, Hutton explained that Eurosport’s programming schedule is nearly 50 per cent Olympic sports, allowing the broadcaster to tell stories about the characters and events on a year-long basis.
He stressed the Olympic Games will be profitable and cumulative cash flows will be positive for Discovery over the term of the agreement. Hutton added that talks have begun with traditional and new distribution partners, such as mobile and digital platforms.