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Business Essay: BBC and The Olympics

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How Does BBC Get Profits from the Olympic Games?

One thing is for sure – the Brits love the excitement and tradition of Olympic games. Having in mind that BBC is broadcasting this year’s Olympics commercial-free, the obvious question for everyone is – how does that pay off? As journalist Alun Hill states in his report for Quora, £900 million were payed for the broadcasting rights and one fifth of the whole staff was sent to Rio. But, where do they get all that money from if there is no advertising?

The answer in this case is very simple. BBC bases most of its profit from its annual licence fee of £145.50 per household since April 2010 (excluding those with severe sight problems and households with a person aged 75 or more). This figure, multiplied with the number of UK consumers basically answers the question. As the BBC’s annual report for 2015/2016 shows, the total licence fee income has increased by 0,2% or £8 million, showing an overall profit of £3,743 million. The other, and not an insignificant part of the BBC’s funding comes from their commercial businesses, government grants, and other incomes as rental collections and royalties from overseas broadcasts of programming, as stated on their Wikipedia page. However, in the case of the Olympics, these factors are irrelevant.

Even though we live in the times of the internet and it seems that not many people still devotedly watch television, BBC denies this claim with 96% reach of their older audience all over the country. Their viewership is bigger than ever and 2016 Olympic games in Rio are only supporting this fact.


Hill, A. (2016, August 11). Retrieved August 16, 2016, from

BBC Annual Repost and Accounts 2015/16 (Rep.). (2016, July). Retrieved August 16, 2016, from BBC website:

BBC. (n.d.). Retrieved August 16, 2016, from

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We posted this business essay on one of the most current trends in modern history – Rio Olympic Games. One of our new writers was asked to analyze the profit of BBC from the most astonishing sporting event. The paper was written from scratch as you will be requested to complete an original paper on your own topic. This business essay can be used only as a source of ides for your personal piece of writing.

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