Eco discussion question – american television broadcasting rights

The following are the prices paid for the American television broadcasting rights of the summer Olympics since 1980:
Moscow—NBC agreed to pay $85 million; 1984 in Los Angeles—ABC paid $225 million; 1988 in Seoul—NBC paid $300 million; 1992 in Barcelona—NBC paid $401 million; 1996 through 2008—NBC will pay $3.6 billion; 2010—NBC paid $820 million; 2012 in London—NBC will pay $1.18 billion for its American broadcast rights. Assume you have been charged with the responsibility of determining
the IOC and local Olympic Committee’s asking prices for the Rio de Janeiro 2016 television broadcast rights for fi ve different markets: Japan, China, Australia, the European Union, and Brazil. Determine a price for each, and justify your decisions.

2. Your instructor may assign you to represent either the IOC or any one of the television networks in each of the fi ve countries that have been asked to bid for the broadcast rights for the Rio de Janeiro 2016 Games. Prepare to negotiate prices and other organizational details.

 

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