The Olympics, traditionally a global television event, is experiencing a notable decline in TV viewership as audiences increasingly turn to social media for short video highlights to watch key moments (via Nikkei Asia).
This shift in viewing habits is shaking the foundation of the Olympic Games, which have long relied heavily on broadcast rights for revenue. The rights fees for US Olympics coverage, for example, have been rising steadily since the early 2000s.
(Photo : DANIEL DORKO/Hans Lucas/AFP via Getty Images) A screen reads "Paris2024" and shows the olympic logo on a press conference to present the transport plan for the opening ceremony of the Paris 2024 summer olympic games in Paris, France on 13th June, 2024.
Changing Viewing Habits Impacting Olympic Revenue
The statistics highlight this shift. The 2020 Summer Olympics in Tokyo, held in 2021 due to the COVID-19 pandemic, were watched live on TV and the internet by 3.05 billion people worldwide, a 5% drop from the 2016 Olympics in Rio de Janeiro and a 15% drop from the 2012 Games in London.
In the United States, the Tokyo 2020 Olympics were the least-watched in decades, with just 15.5 million viewers tuning in each night, a 42% decline from the Rio 2016 Games.
Similar declines were observed in Europe. Despite falling TV audiences, advertisers continue to pay high prices for commercials, creating a challenging environment for broadcasters.
In stark contrast, Nikkei Asia reports that highlights and other recorded video clips from the Tokyo Olympics were viewed 28 billion times online, a significant increase compared to 11.6 billion views for Rio 2016 and 1.9 billion views for London 2012.
The declining viewership has significant financial implications. If live TV viewership continues to decline, the foundation of the Olympics could be jeopardized.
Since the 1984 Games in Los Angeles, often seen as the start of a more commercial direction for the Olympics, the IOC's broadcast revenues from the Summer Games have increased tenfold. However, the financial strain on TV channels that broadcast the Olympics for free is becoming unsustainable.
The Japan Commercial Broadcasters Association, for example, reported financial losses from airing the last three Summer Olympics due to steep rights fees and production expenses.
The outlook for the upcoming 2024 Summer Olympics in Paris appears bleak for Japanese broadcasters.
The Olympics' Cultural and Communal Aspects Also Impacted
In addition to financial concerns, the shift from traditional TV to social media impacts the cultural and communal aspects of watching the Olympics. Traditionally, watching the Olympics on public television in Japan has drawn viewers of all ages, fostering a sense of unity and shared excitement, Nikkei Asia notes.
Watching highlights on smartphones diminishes these communal experiences and reduces opportunities for young people to actively engage with sports.
In response, Olympics organizers have been increasingly considering the inclusion of e-sports as potential events, reflecting their concern over shifting viewing habits and financial sustainability.
In recent years, the Olympics has embraced eSports to attract a younger audience. Last September, the Olympic eSports Series in Singapore featured virtual versions of sports like archery, chess, and tennis. The International Olympic Committee has partnered with online platforms like Chess.com and Just Dance to create these virtual sporting experiences.
