CASE 3-2Swifter, Higher, Stronger, Dearer case study

1. The following are the prices paid for the American televi- sion broadcasting rights of the summer Olympics since 1980: MoscowNBC agreed to pay $85 million; 1984 in Los AngelesABC paid $225 million; 1988 in SeoulNBC paid $300 million; 1992 in BarcelonaNBC paid $401 million; 1996 through 2008NBC will pay $3.6 billion; 2010NBC paid $820 million; 2012 in LondonNBC will pay $1.18 billion for its American broadcast rights. Most recently NBC has purchased the U.S. broadcast rights to all the Olympic Games through 2020 for $4.38 billion. Assume you have been charged with the responsibility of determin- ing the IOC and local Olympic Committee's asking prices for the Rio de Janeiro 2016 television broadcast rights for five different markets: Japan, China, Australia, the European Union, and Brazil. Determine a price for each, and justify your decisions.