The Made-for-TV Olympics

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As sole U.S. broadcaster for the Olympic Games, NBC is making sure that key executives from companies spending millions of dollars on advertising get the best access money can buy: a private jet, a sumptuous room and, for the competition itself, the choicest seats in the house. NBC is taking over a five-star hotel complete with tennis courts, putting green, spa and 50 acres of landscaped gardens. There is a twist, however. The hotel is in Bermuda, 7,750 km from the Greek capital. NBC says it planned the Bermuda junket two years ago because it doesn't have enough room in Athens for all the clients who want to go. "This is not an unusual practice," NBC chairman Robert Wright told Fortune. "We had a similar situation in Atlanta in 1996." But a top network official intimately involved in the planning told Time that the Bermuda option was offered because of post-9/11 security concerns, and that NBC had been surprised by how many clients still wanted to go to Athens. Those clients, he said, "are going to have to manage their expectations. They're used to a level of service that's pretty good. But in Athens, getting from point A to point B, getting into events, getting a cup of coffee, is going to be more challenging" because of tight security, and because "Greek culture is not known for its service."

Those who do travel to Athens are likely to find a more attentive city than the executive supposes. But there will be little doubt about who's calling the shots. Rights fees from broadcasters like NBC and the BBC, not ticket sales, foot most of the bill. (And what a bill it is: a government minister tells Time that Athens is projecting 50% overruns of its €4.6 billion budget, thanks mostly to last-minute security requirements.) More than 75% of Athens' revenues, or €1.5 billion, will come from broadcaster fees. Ticket sales, even if they were more robust, would account for less than 10% of that amount. "Five million spectators vs. 4 billion viewers?" exclaimed one Athens organizer. "No contest!"

For the Games, that emphasis has been apparent from Day 1. In the rush to meet construction deadlines, organizers repeatedly stressed camera readiness over spectator comforts. All of which is good news for viewers around the world. In Britain, the BBC is scheduling 250 hours of coverage and 1,000 hours of "interactive" coverage. Viewers will be able to switch venues and watch the games live on their computer screens. In the U.S., NBC is providing an average of 70 hours of coverage every day (on separate cable channels) as well as the first-ever Olympic broadcast on high-definition TV.

For the TV companies, a lot is at stake. NBC's $793 million investment must be recouped by advertising. (It'll probably manage, having filled nearly 90% of the available slots.) In a fragmented market, the Olympics are one of those rare communal events that can attract huge audiences, which translates into big advertising dollars. No wonder NBC wants to give its clients exactly what they want. If that's a big screen on the pink sand beach of a remote holiday island, so be it. They are "in the business of aggregating audiences, not aggravating advertisers," says Josh Rash, a media buyer who places ads for the network.

As for the hundreds of thousands who still want to see the Games live, in the literal sense of the word, there is plenty of room for them, too. In fact, Greek officials may soon lower ticket prices to bring in the crowds. Spectators "are part of the magic," says Michael Payne, head of marketing for the International Olympic Committee. Adds one Athens organizer, less poetically: "You always hope to fill the stadiums. It makes for a better picture."