Is NBC’s Tight Leash on Olympics Webcasts a Mistake?

Beijing-nbc

For Internet television, the Beijing Olympics represent a milestone. NBC has created a site with an unprecedented 2,200 hours of live Webcasts of Olympic events.

But the Olympics are also a powerful illustration of the current battle line between the big business of network television and the emerging medium of Web video. NBC’s broadcast and cable networks will air 700 hours of live events that will not be Webcast. And even more frustrating to some, another 700 hours of the contests will be taped and shown hours later on television, with no legal way for people in the United States to watch them before the broadcast. (All of the broadcast events are available to replay on the Internet after they are aired.)

These limits have exasperated no small number of people who heard about the spectacular opening ceremony Friday but couldn’t find any video of it online until after NBC broadcast it that night. NBC has said that it needs to keep the most popular events exclusive to television in order to serve the advertisers, affiliate stations and cable systems that have all paid heavily for a share of Olympic gold.

Now NBC has released the first batch of research on how people are actually watching the Olympics, and its findings raise questions about whether the network’s fear that more liberal Webcasting would cannibalize its broadcast audience was unfounded. (TV Decoder has more on the research so far.)

In fact, the network has found that the Web and the network drive viewers to each other as people get caught up in the Olympic dramas of the day. Half of the online users want to catch up with events they may have missed. And another 40 percent want to replay something they first saw on TV. For example, 81 million people watched the men’s 4×100 swimming relay on television and another 1.7 million watched it later on the Web.

“The Internet hardly cannibalizes; it actually fuels interest,” said Alan Wurtzel, NBC’s president of research, in a conference call with reporters Wednesday.

And even active Internet users are also watching the Olympics on television. NBC’s nightly survey finds that 90 percent of people who follow the Olympics watched it only on television. The other 10 percent also used the Internet, mobile phones or video-on-demand services from cable. But only two-tenths of one percent exclusively use the Internet to follow the Olympics and don’t watch television.

Mr. Wurtzel said this makes him believe that even if the network had chosen to simulcast the popular Olympic events on the Web, its broadcast ratings wouldn’t have been hurt.

“We know without question people want to see the best viewing experience,” he said. “If you watched the Olympics in high definition on a big screen, you are not going to watch it online. So that is why there isn’t going to be a cannibalization.”

Mr. Wurtzel declined to speak about the company’s obligations to affiliate stations and cable systems. But he added that the lesson of Beijing so far is that “the more things changed, the more they remain the same.” Even as people adopt new media like the Internet, they keep using older ones as well, he said.

In other words, he said, “the big 800-pound gorilla will remain network television.”

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Here goes my conspiracy theory:

Yesterday, as I was driving home I tuned into my local sports radio channel. They played Phelps winning his 10th gold medal around 7 PM Pacific time. NBC played his 200m Fly around 10 PM with the caption LIVE. I clearly remember the radio host saying Phelps was behind after the first 50m. That turned out to be case on the television also. The radio host then said the race was closer than most expected. That also turned out to be true. Could they have been talking about the same race NBC played later that night and said LIVE?

There is no conspiracy. You are unfortunate to live on the West Coast where all of the Prime Time shows (including the Olympics it seems) are indeed delayed 3 hours so that i can remain in Prime Time. This was announced a long time ago. In fairness, NBC should mask the “LIVE” caption for such delayed feeds.

I don’t understand why there isn’t more of a fuss around the fact that only MS Vista computers can see Olympic replays! I bought a new PC this past January and at the time chose to buy the older XP operating system. This means that I cannot view any except the most popular Olympic broadcasts — which are reserved for Vista-based operating systems only. Given that the average replacement for PCs is 4 years, why aren’t more people outraged by this high-handed behavior by MS? Clearly it is intended to penalize folks who don’t buy the latest and greatest MS products!

There is no need to have Vista……I have XP and have been able to watch every bit of online video that I wanted. You need to download the Silverlight plug-in, but that takes less than a minute.

I have Windows XP and have been able to see the videos. Are you referring to instant replays within seconds of them airing the event on TV?

I do find the NBC Olympics website is not user-friendly for finding what you want to see immediately. I’d imagine that many others don’t feel this way about it.

Without rehashing all the discussion earlier about whether NBC should mask the “Live” graphic, it is a slap in the face to all of us on the West Coast to have a delayed feed. We know all the results from a variety of sources, so why should we have to wait three hours to watch the TV video. I watched the USA-China men’s basketball game on a European TV network’s feed via the Internet, so I didn’t need NBC’s video hours later. NBC loses my viewership, when it would have it — even I chose to Tivo it — by feeding it live to the entire country.

Alan Wurtzel has it right. The internet drives business to the companies who offer great media, extraordinary quality and user friendly interfaces.

NBC has it wrong. Limited selection, poor quality and a difficult user interface. Those are the hallmarks of a vanishing business.

I watched the Opening Ceremonies, and was bored to death. I don’t plan to watch any more of these Genocide Olympics.

Well, I have a mac and I’m not having any problem watching stuff on the net, and yes that Silverlight plug in works. That stuff aside I enjoy the stuff that they have online even though it is the lesser or not the big ticket sports they want for network TV. They could still do so much better by opening it up more, it would not hurt anything. Too bad it has to be such a game.

Well, it’s too late now, but NBC should have either made the opening ceremony available live (and without commercials!) on pay-per-view or streamed it live online or both. It’s doubtful any of these would have affected their prime time viewership, and in fact might have boosted it thru word of mouth.

It’s even worse for Mac users as you can’t view any of the videos without an Intel based computer. I wanted to show my husband some of the amazing performances at the opening ceremonies since he had to work that evening, but I couldn’t play any of the clips.

I agree, the website is not well organized. When trying to find the opening ceremony video, I had to dig through the “encore” section and find one of the three-parter videos, which were not posted in any order.

In addition to most watched/popular sorting, video should be offered by sport – a section to find swimming, gymnastics, etc, then segmented again by women’s men’s etc…

Unless maybe I missed something, I don’t think this is how the content is offered.

As part of the 2/10 of 1% who follow on the internet and not on TV, I am particularly disgusted by the decision to block live webcasts. The content of the article indicates that the motivation behind the decision was fear–fear that it would take viewers away from paying stations. The market is unkind to the timid. Instead of gaining viewers, you lost eyeballs on commercials, and the advertisers lost value.

NBC–please turn them on. Now.

Side rant: NBC and all others similarly situated: please do NOT increase the volume of commercials attached to webcasts. Webcast commercials blocks are usually only 15 or 30 seconds. I’m not in the kitchen or bathroom. I’m sitting right here. Please don’t deafen me. Thanks.

Agree w/M. Lewis at #5, NBC’s website is annoying. It’s easy to get to a particular sport, but not that day’s events.

i don’t know about cannibalizing the broadcast feeds. i’ve been watching the fencing competitions live on line at the same time i have the tv on watching phelps et.al.

this is the first time i’ve ever been able to watch fencing or any of the less popular sports since nbc has always believed (and abc before that) that the olympics only consist of 7 or 8 sports.

oh and btw… i’ve been doing it on a MAC! (although the video only works on intel macs, not the older power pc macs)

NBC needs to show something other than boxing during the day on CNBC and Oxygen. Field Hockey, Table Tennis, anything. I feel like it is all boxing all the time. Mix it up. It would be WAY better than team equestrian….zzzzzz….

don’t own a TV like a lot of students, we only have an Internet connection. no live broadcast online in an easy to watch, high-quality format? simple, if you’re 20. go download it illegally. better quality than most webcasts, and if you’re a west coastie, you don’t have to wait hours to see it.

NBC frustrates me no end! Why they think they have to delay broadcasting to the west coast is beyond understanding.

I agree with Mr. Fisher (#6) that it really is a slap in the face that us on the west coast don’t get the primetime Olympics Live. If NBC doesn’t know already, California is the most populous state in the country (38 million people), and we don’t like being treated like we don’t matter. It definitely is too bad NBC has to make it such a business ordeal. Fortunately, the next Olympics (Vancouver 2010), will be in OUR time zone, so take that, NBC!

I’m an american expat living & working outside the USA – and I have access to only minimal satellite TV. I’m finding that the Olympics on the net are nearly unreachable for me. Why does NBC lock out all out-of-USA watchers? Their coverage could be a sensation for those outside the USA. But even YouTube has blocked Olympic vids. The weird thing is that for almost all other sports that I follow, streaming video is readily available and the best way to watch.

Let’s face it, every time NBC could make a user-friendly or user-unfriendly decision for the Olympics, it chose user-UNfriendly. But let’s also realize NBC has been user-UNfriendly for years, and the network (I can attest to from the inside) truly hates its viewers–and the Internet even more. Is anyone really surprised the Olympics coverage is so cynical and crass? NBC has a track record for not doing right by its viewers. Perhaps that’s why during the rest of the year, it’s losing viewers and share on a regular basis. Just because it’s broadcasting the Olympics doesn’t mean NBC is a gold-medal operation. Far from it.

One problem at NBC is that they haven’t identified a method for the advertisers to pay evenly for viewers across their media choices – or their executives can’t make the leap to a new income formula. Their focus remains on NBC and delivering what they think will bring a big audience during prime time, which have always been the basis for advertising rates, while we have other priorities. We want to see the events that interest us – when they are live or whenever we can get to the TV or PC. We will watch commercials on internet video feeds, the way they are shown on TV, if that’s what it takes to see live action and to see events when we have the time to view them.

The second is video quality. The network executives have grown up in a mindset of excellence in video quality and PC viewing just doesn’t measure up to old network broadcast standards and it’s such a huge gap to the industry’s investment in high definition quality that they can’t fathom viewers watching events – and sitting through advertising – in this resolution.

I live in the Neth. Antilles, we have no local coverage of the Olympics. I loaded the plugin and then get the message that the video is only for US based IP’s ? Now I get nothing. Tony K.

As long as these sorts of delays remain, network TV will remain the 800 pound gorilla. But, as better options open up on the web, we’ll start to see that gorilla lose a little weight.

Living in the Seattle area we are fortunate to have CBUT(CBC) on our cable system. They don’t delay major events and show replays and delays during Olympic off hours. Have seen all of Phelps events in real time. NBC online content is ok also but not all sports are shown(ie:swimming).I like watching the events with out play by play.

There are other internet sites besides NBC that show live online streaming of Olympic events to those of us in the US. //cyclingfans.com is a good resource for those.