While Comcast Chief Executive Brian Roberts says NBCUniversal’s $4.4 billion deal to telecast the next four Olympics will prove profitable, some others aren’t so sure, reports Bloomberg.
Comcast plans to make money by charging higher distribution fees for broadcast stations and its cable networks, as well as by increasing ad rates, the story says. The company also plans to charge for online streaming to mobile devices and tablet computers, a strategy that the Comcast hadn’t yet made public, the story says. But some analysts say they remain unconvinced that the plan will work.
“They have their work cut out for them," said Christopher King, an analyst at Stifel Nicolaus & Co. in Baltimore. "The fact they outbid everyone else by about $1 billion, I think it would be a challenge to argue they’re clearly going to make money on this.”