How Important Are the Olympics to NBC's Bottom Line?

NBC has invested $12 billion for exclusive U.S. rights to the Olympics until 2032. However, the changing landscape of television and the rise of digital platforms have led to a decline in traditional TV ratings. NBC is adapting by expanding its digital presence, including partnerships with platforms like Snapchat, to capture younger audiences. Despite these efforts, most advertising revenue still comes from TV. NBC is also prepared to offer 'make goods' to advertisers if viewership targets are not met, ensuring they maintain strong advertiser relationships.

What challenges is NBC facing with the ratings of the Olympics compared to previous years?

What are 'make goods' in the context of NBC's advertising strategy?