Listen: MediaTalk | Season 2 EP 22 - Warner Bros. Discovery on the Summer Games and the World

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Mike Reynolds: Hi, I'm Mike Reynolds, a senior reporter covering the media industry with S&P Global Market Intelligence tech, media and telecom news team. Welcome to "MediaTalk," a podcast hosted by S&P Global, where the news and research staff explore issues in the evolving media landscape. Today, I'm joined by Scott Young, group senior vice president of content, production and business operations at Warner Bros. Discovery Sports Europe. Of late, Scott's been concerned with a little project known as the Summer Olympics from Paris. Warner Bros. Discovery is the rights holder across Europe for the Games. How are you doing today, Scott?

Scott Young: Thanks, Mike. It's great to talk to you.

Reynolds: Thanks. Scott is going to give us some insights on Warner Bros. Discovery's production, distribution, and a little bit about advertising plans for the Paris Olympics, the opening ceremony for which is July 26, before the Summer Games conclude on Aug. 11. Let's get to it.

Discovery's covered three Olympics, but the Paris Games are the first for the combined Warner Bros. Discovery. What does this mean for the company, Scott?

Young: This means one of the most epic coverage of an Olympic Games ever seen by a broadcaster of our scale. And the meat on that bone means that we are going to show every moment of the Olympic Games live across our platforms. Those platforms include free-to-air linear, subscription linear, subscription streaming across Discovery and Max, and now we've launched Max across Europe. And of course, a high volume of content on our web app and social. The way we now look at the Olympic Games is to make it the most immersive experience that we possibly can for those who love the Olympic Games.

Reynolds: A lot of stuff. A lot of people. Scott, how many people do you have on the ground or will have on the ground in Paris? I'm assuming it's quite a bit more than might have been in Tokyo and Beijing given the constraints of the pandemic on those two Olympics.

Young: Yeah, the saying "it takes a village" to raise a project like this is very apt here. There are about 3,100 people working across this project globally, not just in any particular central market. This includes teams at TNT Sports in Atlanta, where we not only have teams working from Atlanta back in Paris but also working in Atlanta in the editing suites, creating content overnight. So as we broadcast 3,800 hours of the Games, we have about 900 people on the ground in Paris. I want to say Paris broadly in France, because obviously Paris is the center of the venues, but there are a lot of venues around France, including down to Marseille where there is sailing, and of course surfing in Tahiti, which is a venue that we haven't sent too many people to.

Reynolds: But a lot applied though for that one, right?

Young: Everybody applied for that one, so we have a vast group of people, but the way that we run our organization is not to take everybody into a central point, but to use all of our key markets, including in Paris and the UK, and Norway, Spain, Italy, Germany, and Poland. Each one of those key markets has a production base in that area. And then also we have a very large central team that services those markets in Paris. So the idea of a village being expanded around the world is very much how we manage an Olympic Games.

Reynolds: Okay. You're going to reach how many nations with your coverage this time, Scott, and different languages and productions for different countries?

Young: Yeah, so we have 47 markets as part of WBD Sports Europe and Eurosport is the home of the Olympics. But very much what our Olympic Games production looks like these days really relies on the power of streaming. Our superpower as a sports broadcaster is streaming, and whether it's Max in most of the markets or Discovery+ in three of the current markets, the fact that you can watch every moment of the Games live at your discretion — whether it be traditional, linear or whether it be streaming — the market number now almost becomes irrelevant because the power of watching the Games is now portable. So we talk about 47 markets in 19 languages as a very traditional way of broadcasting Eurosport across Europe. But the advent of our streaming platforms now means really it's very portable. And in those markets, you can choose any language anywhere you're traveling to. So, it starts to expand out to quite a beast of a production service.

Reynolds: You guys still have sublicense agreements with different local broadcasters in the traditional linear mode?

Young: Yeah, so the way the last four Games have worked, including Paris, is that we acquire the rights to all of the Games for all of the markets and then sublicense to traditionally the free-to-air broadcasters, public service broadcasters in those regions. This is usually part of the broadcasting act in those regions where the Olympics must be accessible to all, and we work quite closely as we see them as partners. So our sub-licensing team has either done deals for all four Games or we work through individual games depending on the market. But yeah, it's an important part of our business strategy of the Olympics in the current cycle. And as I said, we work with them hand in glove because that is a far more successful way to operate as a content business as well as being commercial partners.

Reynolds: Scott, can you talk about the opening ceremony? It's on the Seine. The athletes are going to be floating up the river on barges. 300,000 people, I think, will be lining the banks of the river. Can you give us a sense of what that's going to be like?

Young: Let's tackle that in the order in which it was sent. The opening ceremony is going to be a remarkable sporting moment. And when I say that, to have an Olympic Games opened outside of a traditional arena is to be a moment in time in itself. OBS, which is Olympic Broadcasting Services that are doing the host broadcast feed of that say that this is the largest broadcast of an opening ceremony or a sporting event in history. Some 130 cameras, six drones, three helicopters, and 27 OB vans is what it will take to broadcast the athletes. So, the river is 6 kilometers long. And the barges take about 42 minutes from start down to Trocadéro. The athletes will get off at Trocadéro, which is the festival arena that's just opposite the Eiffel Tower. The athletes will get off the boat and then be welcomed into a purpose-built stadium that's down opposite the Eiffel Tower where President Macron and the IOC President Thomas Bach will then welcome the athletes into that arena and the famous saying of, "Let the Games begin," at which they then will light the torch. The opening ceremony was first pitched to us by the Paris 2024 committee as something they wanted to be as revolutionary. And I think they're on track to be not only revolutionary but quite extraordinary. And I think if it all goes according to plan, this will be a moment in time for everybody to remember, not just sports fans.

Reynolds: Yeah, there's never been anything like this. So, we're all looking forward to that. In the US, Scott, the women's sports movement is in full flight. Caitlin Clark, the basketball star, has had the spotlight on her for the past year. The IOC says that Paris will mark the first time that 50% of Olympic athletes will be women. As a company, Warner Bros. Discovery has been committed to presenting women's athletics for quite some time. Looking to increase that coverage in Paris, or what's your game plan there?

Young: The game plan is as it is for all of our sports to make sure there is an even balance of men and women. And when I say that, not just in competition, because it is fantastic to see that of 10 and a half thousand athletes, there is a balance between men and women, gender equality and that is really important to us. But in other sports, to make sure that things like prize money are equal as well. So as far as the Olympics is concerned for this moment in time over two weeks, it's brilliant that they've got there and we will be celebrating that and we will be focused on that, and that will be very much part of our content. I think broadly as part of a sport broadcast in the current community, making sure that there is gender equality and parity across sports with men and women is an absolute focus.

Reynolds: In terms of US athletes, gymnast Simone Biles, swimmer Katie Ledecky, and the sprinter Sha'Carri Richardson, there's going to be a lot of spotlights put on them here in the States by NBCUniversal Media LLC. I'm sure you guys are covering them as well. What about from a European perspective, Scott, who are some of the big women's stars that may emerge at these Games?

Young: One of the most notable for us is Dina Asher-Smith, who we do a lot of work with. She's a fantastic ambassador for the Olympics. She's a fantastic ambassador for women's sport. She works very closely with us, not just as an athlete, but as someone who is very articulate about where sport is going in the current era. We will pay close attention to all athletes from all nations. But as I said before, we've got 47 of our own nations as part of our ecosystem of broadcasting. So we have quite a slate of athletes that we will want to make sure that we surface and celebrate. But no matter where they're from, the great thing about the Olympic Games is that you never know where that remarkable story is about to appear. And in the numerous sports across the numerous venues, our strategy is to make sure we are part of telling the story of those athletes, which means we have reporters, journalists, and producers in every venue. Because you just never know where that moment appears. And we want to make sure we surface that and share that with our fans.

Reynolds: No, that makes total sense. Speaking of dollars and cents, Scott, can you talk a little bit about advertising for the Games?

Young: We obviously work with the top partners, which is very much part of the agenda and working with the IOC. The sales team, the commercial team, are smashing their targets, which they're really pleased about. And that is something that in the current climate of commercial linear television, that takes quite a bit of work to make sure that we achieve that. Delighted for the sales team that they have been able to manage to procure that. The Summer Olympic Games is a moment in time that everybody wants to be a part of. We have long-standing partnerships with clients such as Bridgestone that continue to return because we not only tell the story of the athletes that they support but also of their involvement and how that is very relevant. So, really pleased to say that commercially from a sales perspective, it's looking really positive.

Reynolds: Good deal. Good deal. What about viewership? I'm going through a checklist here, a scorecard if you will. For the Tokyo Olympics, I think there were more than 372 million people in Europe who watched the Summer Games through Discovery channels and platforms and the various sub-licensee partners. For the Beijing Games, Discovery+ and Eurosport streamed about a billion hours. All told, I think 156 million people watched the 2022 Winter Games. Scott, what are you looking at this time around? The venue, the Summer Olympics, the pandemic is presumably in our past. I would imagine viewership is going to go through the roof.

Young: We hope so. And not just viewership. I think for us these days, we measure audience in many different ways. So in the traditional linear sense, yes, we're looking for those big numbers of viewers that come to watch those tentpole moments in the Olympics. The athletics is always one of those events, men's and women's 100-meter finals always drag in a fantastic crowd, but any of those gold medal events are hallmark moments where people come to traditional television. We're also looking for a significant growth in subscriptions across our streaming platforms. And by offering every moment of the Olympic Games live across Max and Discovery+, we're very confident we're going to grow an audience that realizes that not only can they come and curate the experience of the Olympic Games at their own discretion, at their own time and place, because it's very portable content as well. But they start to share that with their friends and family. So then we start to see content across their web app and social platforms really grow, which is the third tentpole of assessment, which is engagement. And having an audience that's highly engaged in our content, sharing our content, and talking to their friends and family about what we are broadcasting is really part of that trifecta. So strong linear audience, really engaged audience in our content, and a high number of subscribers coming to Max and staying is very much how we'll be measuring success.

Reynolds: All right. Warner Bros. Discovery struck a global licensing agreement with the IOC for Looney Tunes characters, Daffy Duck, Wile E. Coyote, and Tweety Bird to be part of official Olympic licensed products. You also have different clothes, toys, collectibles, and other products for different nations, including the US. I have to think that this is a first for the Games this way, in terms of a big company like yours getting involved with a franchise that many people love globally.

Young: This is the start of putting very popular, well-known, much-loved characters alongside something as popular as the Summer Olympic Games. I think this is just the beginning of many of those fantastic brands that we hold within Warner Bros. Discovery that can align to something as scalable as the Olympic Games. And it's not just the characters you read out; you'll see Bugs Bunny start to appear not only as a Looney Tunes character but as a member of our reporting team. So we're about to expand the Looney Tunes characters' involvement in our Olympic broadcasting like no one has ever seen before, which we're very much looking forward to. So look, I think there's lots of different ways and whether it's Looney Tunes or any number of our very successful tentpole traditional entertainment portfolio brands, I think we can start to see more ways of engaging. And of course, in four years' time, we're back in Los Angeles with the Olympic Games where Looney Tunes is only the start.

Reynolds: Okay. In January of last year, Warner Bros. Discovery inked an IOC rights deal along with the European Broadcast Union for the next four Olympics. I guess this works for the company, you guys are making money, Scott? Warner Bros. Discovery likes the Olympics.

Young: We love the Olympics. Those five rings are very symbolic, not just as a sporting event, but as a cultural event. To be a global sports broadcaster as we are, I think the Olympic Games are a very important part of what we do. And even though the region in which we broadcast the Olympics is across Europe, it's very important for us globally as part of our brands as a sports broadcaster. I think our long-term plan going forward between now and 2032 is, what is the story of the Olympics? What is the trajectory of the Olympics going to be between now and 2032? What does that matter for the Olympians to be an athlete in Brisbane '32 feels like a long way away from today, and it feels like it could be a very different experience. And if you just see in the Paris Games, the last two days, we've got breaking as a sport for the very first time. Where do you start to see the Olympics go and how it drags in a new audience and a new cultural audience and that mix between artistry and athleticism, which is where we're starting to see that intersection now with things like breaking, but also three-on-three basketball and skate and even speed climbing. We're starting to see some very non-traditional sports break through in the Olympics, which I think is going to be a very important part of their success going forward. And that very much bodes well for us as part of our content.

Reynolds: Getting to the end here, Scott. Obviously, you're going to be busy. Will you have time to get out there and check out some of the events in person? And if you have that opportunity, what do you want to see?

Young: As an Australian, I would say swimming is usually my default as a fantastic Olympic sport, usually because we're quite good at it. But I look forward to just being out in Paris and seeing an Olympic Games that is no longer constricted by COVID, that is in a European summer in quite an extraordinary city with some amazing venues next to amazing landmarks. The beginning of the Olympics is always a bit hectic where we just make sure that everything is going according to plan and then you take a breath. And yeah, I do hope that we get out and not just me, but much of my team get a moment to experience the Olympics because it's not just a moment in time for the athletes. It's very much a moment in time for all of us at Warner Bros. Discovery to be able to be involved in such a remarkable event like the Olympic Games. But not only that, the Olympic Games in Paris. I think right now the world needs the Olympic Games. So what I'm really hoping is not just for fantastic competition with remarkable moments with athletes achieving their dreams after years and years of dedication, training, and sacrifice, but also just that celebration that the summer Olympic Games always brings where it just makes people stop for a minute and smile and enjoy time. And as I said, I think the Olympic Games has a lot to offer the world right now. And I'm really looking forward to that opening ceremony on the 26th of July, where an estimated 3.5 or 4 billion people will be watching. So if half the world's population have a moment in time to celebrate athletes going down the River Seine to do something remarkable, I think that's going to be a lot more than just the opening of a sporting event.

Reynolds: Okay, that concludes this episode of "MediaTalk." I wanted to thank our guest, Scott Young, group senior vice president of content, production and business operations at Warner Bros. Discovery Sports Europe, for being our virtual tour guide for the company's vast and complex presentation plans for the upcoming Paris Games.

Thank you, Scott.

Young: Absolute pleasure

Reynolds: This is Mike Reynolds. Whether you're watching in Europe or in the US, enjoy the Olympics. We'll catch up on the next episode of "MediaTalk."