NBCUniversal, owned by Comcast, is known to lose money in order to continue on with their tradition of broadcasting the Olympics to the world. Lately though, the company has been making big progress to actually earn a profit. Comcast predicted for several years before the Sochi Olympics that they knew it would be profitable. The company announced Tuesday that it made $1.1 billion in revenue from the games.
Comcast paid $775 million to have the rights to the Sochi Winter Olympic games and in total they spent $875 million. In 2011, NBC spent $4.4 billion for the rights to the Olympic games through 2020. The impact of this decision has been hard to measure because the benefits are very indirect.
Any profits made from the Olympics are seen as extra to Comcast. According to Neal Pilson, the former head of CBS Sports who also served as a consultant on television rights to the International Olympic Committee, “There are good corporate reasons to stay with a major sports property even if it’s a borderline profit generator”.