The Wall Street Journal had a little piece yesterday looking back on CBS’s NCAA Basketball partnership from about 10 years ago. The article appeared in the print edition. Yes, that still exists.
CBS paid $6 billion for the 11-year deal. At the time the deal was considered to be highly over-bid on CBS’ part. However, CBS has been making moves in recent years that have made some reconsider.
Last year CBS’s on-demand internet broadcasts of every game in the tournament were a hit with both viewers and advertisers. The revenue from those online advertisments along was in the $23 million range. This year CBS estimates that the revenue should break $30 million.
In total last year advertisers spent $643 million on the men’s tourney. This was up from $520 the year prior. The thing is that the terms of the CBS-contract call for the rights fees to increase each year–this year the fee is $571 million. This means that CBS needs to bring in more ad revenue to turn a profit.
CBS has sold out their online ad slots but are yet to sell out the traditional network spots. Making things harder are the fact that last years final game drew just under 20 million viewers. In 1992 the championship dre over 34 million viewers.
If you have yesterday’s WSJ, check out the original article. It’s a good quick read.
