Case Study: 3-2 Swifter, Higher, Stronger, Dearer Q 1

1. The following are the prices paid for the American

television 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 determining 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.