Now it's official: after Euro 2020 too Tokyo 2020 sled of a year.
The Olympic Games, originally scheduled from 24 July to 9 August, will therefore not take place this year due to the Coronavirus crisis. The IOC therefore accepted the proposal of the Japanese premier Shinzo Abe and decided to postpone the event no later than next summer. “The decision to postpone the Games is totally shared,” Abe explained to the press. “The Olympic and Paralympic Games will still be called Tokyo 2020 and will be the testimony of the defeat of the virus.”
A historic decision (the last time the games were canceled took place in 1940, among other things always in Tokyo, due to the Second World War), a decision that will have a negative impact also on the advertising market, in a year that is already very difficult for the sector.
The Olympic Games are in fact one of those four-year events, together with the World Cup or the European Football Championships, and the US presidential elections, which have always been a driving force for the advertising investments of companies all over the world. According to Zenith's latest forecasts, issued last December, the combined weight of the Olympics, European football and American presidential elections would have guaranteed this year an additional $ 7.5 billion in advertising spend globally.
Once the Europeans and the Games have been eliminated, in 2020 only the US presidential elections in November remain on the agenda, the beneficial effects of which will only manifest on the country with stars and stripes.
In Italy, in fact, unlike the European football championship, the Olympics are not of great value in terms of advertising investments, also because they generally take place in August, in a period generally weak for the sector. So much so that the battle to obtain the broadcasting rights of the event has never been very fierce.
The rights holders
The decision taken by the IOC will have a significant impact on its coffers, 73% of which are financed by the 4.5 billion dollars guaranteed by TV rights. Just as it will force all the media operators involved to review their programming and business strategies.
In the United States, the broadcaster NBCUniversal had an advertising turnover linked to Tokyo 2020 of 1.25 billion dollars, after spending 1.1 billion on rights.
The group would have broadcast the Games in Italy Discovery, through its subscription streaming platform Eurosport Player, on the other Rai.
Discovery is from 2018 the official broadcaster of the Games in Europe and has guaranteed the broadcast on Eurosport Player of a total of 3,500 hours of content, considering also the contemporaneity of the events. The Games should also have been broadcast on Rai but with a reduced coverage compared to that put in place by Viale Mazzini in previous editions. There Rai has indeed reached an agreement with Discovery for the broadcast of 200 hours of content dedicated to the Olympics on a single linear channel on television but not on RaiPlay, the digital platform. The public company thus saved 20 million euros by limiting the expense for the rights, sublicensed by Discovery, to 40 million euros.
The exclusive rights of the Games on all platforms from 2018 to 2024 in Europe have instead cost Discovery 1.3 billion euros.