Australian commercial broadcaster Channel Nine is set to make a loss of A$30 million (€24.5 million/$30.9 million) on its coverage of the London 2012 Olympic Games, according to newspaper The Australian.
The report said that a weak advertising market was failing to cover Nine’s broadcast rights fee and production costs of A$50 million.
Nine had hoped for A$140 million in advertising revenues, but looks like falling short of the target after failing to sell all its planned sponsorship packages, the newspaper said.
Nine and pay-television broadcaster Foxtel paid a total of A$120 million for the rights for the 2010 winter Olympics in Vancouver and the London 2012 summer Games. The report said that Foxtel would also incur a loss from its coverage, although it does not rely on advertising revenues to the same extent as Nine.
“Our principal motivation is new subscribers, subscriber retention and getting subscribers to upgrade to sports packages,” a Foxtel spokesman said.
The International Olympic Committee is yet to start negotiations with Australian broadcasters for the rights beyond the London 2012 Games.