Streaming the 2008 Beijing Olympics

"The broadcast is the dramatic engine of the Olympics," says Miller. "We feel that that’s going to be the source and the destination for people."

But while broadcast television may be the most appropriate medium for live events that attract a mass audience, the web is designed for niche audiences. There may not be enough fans of archery, field hockey, or tae kwon do to justify a share of network prime time, but for those who live and breathe these sports or who may be working the swing shift when their favorite sport is happening live, the ability to log on 24/7 and select a stream from hundreds of available hours could be a big deal. In fact, the Olympics may be the perfect internet/streaming event. Each sport has its own niche with thousands of devotees hungry for stats, features, and video of the events, and no matter where the games take place or where in the world the viewer is, much of the action occurs at inconvenient times. With on-demand video, every event is on "when you want it, where you want it."

Conclusion
Every Olympics since 1976 has turned a profit. That’s because the IOC can command top dollar for media and sponsorship rights. Media companies such as NBCU pay the IOC big bucks because they, in turn, can charge advertisers big bucks and then some. The 2008 games will be the biggest test yet of the market value of online video ads relative to broadcast TV ads for similar programming. This will be the first year for serious steaming from the Olympics, and it’s unclear what expectations NBCU has for the short term. For the long term, though, NBCU’s commitment to streaming from Beijing anticipates online video making a substantial impact on the advertising landscape in the coming years. If online video’s impact is as significant as NBCU is betting, whether this year or down the road, that could presage the evolution of another very, very big business.