There’s a hush in the arena as the competitors take their position at the line, they crouch into their starting stance, eyes focused on the ground in front of them. For an instant, everything is still. Many paces away, the only movement is the flutter of tape across the finish line. The countdown ticks down to zero, and someone presses ‘Play’.
The great race between online video and broadcast video has begun.
The 2012 Olympic Games being held in London will be the first games available on broadcast channels and streamed online in the US. In fact, while the numbers show that NBC’s Olympic broadcast coverage is at a record high, its live online streaming package may be reaching a far more engaged audience.
Now, there is a big difference between the network’s streaming coverage and the broadcasts. Olympic event streaming requires a US user to authenticate that they have an account with Comcast, NBC’s owner. But the streaming is live, and one can watch several events at once, provided they have bandwidth. You can imagine the challenge here. The City of Los Angeles has asked workers to stop streaming the games at work. Further, NBC may release streaming numbers today.
On broadcast television the story is a little different. NBC has chosen to consolidate coverage in its most lucrative prime-time slot, and intersperse it with the human interest stories, interviews, and of course ad spots, while limiting event coverage to highlights that happened earlier in the day. Yes, this has ticked a lot of people off, but the network’s plan appears to be working; NBC’s exclusive deal cost $1.2 Billion, yet despite complaints from Olympics fans using social media, they predict to break even due to soaring ratings.
It is arguable that the high broadcast ratings are due to this consolidation in the prime-time hours. It is also arguable that the streaming live events has helped increase broadcast coverage instead of cannibalizing ratings. You can watch a race at work, see the recap at home, and see plenty of ads in both places. Maybe NBC didn’t get its Olympics coverage wrong at all, and in fact nailed it.
What has NBC done right?
- Segmentation – NBC has deftly optimized its programming for online and broadcast, using the interactive potential of online streaming to its fullest, while creating the ‘put-your-feet-up’ experience for those watching at home. This recognizes the differences in behavior between an avid fan who will waste his boss’ time and bandwidth to watch people run, and a somewhat-interested viewer who just likes that cute Matt Lauer guy.
- Synergy – at all points where NBC touches its marketplace, through its cable and broadcast channels, its daily programs, its affiliates, traditional advertising, online banners, websites, and social media, the network has driven traffic to the quickest, easiest place where viewers can watch (provided they have that Comcast cable account, of course).
- Interactivity – NBC offers a complete Olympic event schedule online where you can watch or get an alert to live event coverage. Within the viewer, you can also tweet or share what you are watching using social media, see everyone else’s comments, and of course watch replays and control the playback yourself. There are also apps for your tablet or smartphone.
- Control – Like it or not, NBC has a lot of money riding on its ability to control the message. Because it has exclusive coverage rights in the US, the network had to figure out the best way to give people tiny little windows into different parts of the Olympic experience, rather than try to cover the games the same way everywhere. The likely outcome would be that nobody trying to watch the games would be able to find what they were looking for. NBC’s tightly segmented control over its programming might seem Orwellian, but it is also an impressive feat for any organization to pull off.
I would be remiss if I didn’t mention the popular Twitter hashtag #NBCfail. NBC made a few missteps by trying to respond to this phenomenon, but in general I think the people complaining about NBC’s coverage aren’t seeing the forest for the trees. The action today occurs online, and NBC understands that. Broadcast television is for passive viewing, and perhaps always will be, while a ‘second-screen’ has become popular for online browsing, sharing, and interactive viewing.
The lessons from NBC’s coverage of the Olympics are clear: Broadcast is still big, but fills a narrowing niche for a vast audience. For true interactivity and real-time viewing, online streaming is the winner in the long run.
[UPDATE: The streaming numbers were released on Aug 2, and the results are staggering: NBC reports that 64 million total video streams have been served across all digital platforms, including mobile.]
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The assumption is that the evening prime-time broadcast is worth anything. I do understand that NBC is unfortunately driven to hold popular events to show in the evening when the audience numbers will be the largest.
However:
1. The same economics seem to require the show to be 1/3 commercials which is simply too much.
2. There is no “sports coverage” in the sense of sticking with an event and developing a sense of competition. Instead there are breaks and shifts among “features,” ads, interviews, and commentaries that leave little room for actual sports.
3. Given the evening coverage so far, one would think that the only sports are synchronized diving, gymnastics, swimming (including many unnecessary preliminaries), and beach volleyball.
4. Even when it is in an event, NBC has selectively edited the content to manufacture drama – major case in point is their decision not to show the second major miss (the fall) in Russian women’s team floor exercise. The competition was over at that point, but that wouldn’t serve the end of dragging out tension. Such a practice means we are seeing a “reality show,” not sports coverage.
5. Same can be said for the editing of the opening ceremony; who are they to decide what is appropriate for an American audience?
6. NBC insists upon imposing assumed narratives rather than letting events reveal their own stories. Example, everything in the pool is about Michael Phelps, everything in women’s gymnastics is about Jordin’s “redemption.”
7. The commentary has been downright inane and often just wrong. Too many questions don’t go any further than “So how do you feel?” And for sports, Ryan Seacrest? I long for the days of Jim McKay.
8. To NBC no nations other than the USA exist, no competitors other than Americans are competing. For example, once they showed that USA competitor would win bronze in men’s individual gymnastics they dropped the coverage; they never even mentioned that there was a German competitor (who won silver).
9. Cramming just a few minutes of a few competitors from an event into a “re-cap/highlights” segment is a dead-give away as to who is going to end up on the podium.
10. Yes, it is possible to access some live stuff via their Extra LIVE! service online, but it is buggy (personal experience) and it imposes ads at timed intervals no matter what is on screen. Examples: Women’s gold medal archery match today was at a crucial point: boom, commercial. Judo matches that are only 5 min. long get interrupted by commercials.
So, there is a lot more to #NBCfail than just a few of us supposed whiny dimwits who “just don’t appreciate” the challenges NBC faces.
As to the fact that they are enjoying high ratings, that is a measure of basic interest in the Olympics shown a captive audience. It is no verdict on the quality of their coverage. Those held in a dungeon may have no idea its sunny outside.
Thank you, James. You make excellent points about what NBC is doing with their television broadcast. Mistake or not, it’s clear they’ve decided to ‘produce’ the Olympics as if it’s “American Idol as hosted by the Today Show”, catering to the lowest common denominator, instead of an important global sporting event. But I don’t think their treatment is out of line with what broadcast and cable television have become. If anything, this may be a turning point that will help to settle two big questions: 1. Is broadcast finally, effectively dead? and 2. What is the tolerance level for streaming ads?
-T
1. People are watching.
2. People are paying.
3. There’s nothing you can do about it…
4. Because you are just one person.
Look, people who are using the #NBCFails tag to whine and gripe, there’s a few things you can do about it, but it has to be more than just one person. More than just 10 people, 100 people, 1,000 people, 10,000 people, etc. etc.
Stop watching.
Don’t get online.
Don’t talk about NBC (I dare you – it’s getting them free publicity – you’re still talking about them).
Pick up a newspaper (or your favorite online paper) and read it to get the results.
Just watch the news at the end of the night on some other channel.
But stop the #NBCFails because you’re doing nothing but annoying >ME<.
Heh heh – well played, Jason! You’re at match point – time for an ad.