“March Madness” is on again. The National Collegiate Athletic Association ("NCAA") Men's Division I Basketball Tournament, which officially kicked off yesterday, will see 68 teams as of Thursday noon (ET) sweating it out in single-elimination matches til Apr 6. As millions of fans fill out brackets, we know that the real winners of the event will be the media moguls.
Two media conglomerates – CBS Corporation CBS and Turner Broadcasting System, a subsidiary of Time Warner Inc. TWX – have teamed up to make the most of the hoopla and high drama surrounding the tournament. Both have enjoyed high television ratings and advertising revenues from the event.
In April 2010, NCAA entered into a $10.8 billion deal involving television, the Internet and wireless rights with both CBS and Turner Broadcasting System. The agreement, effective 2011, runs through 2024. According to the deal, all games will be televised live across four national networks, namely CBS, TBS, TNT and TruTV. This is the fifth anniversary of the joint broadcast by CBS Sports and Turner Sports.
The 67 games to be played this time will be aired on four different networks. CBS will broadcast 22 games, TBS will air 20, TruTV will air 15 and TNT will televise 14 games. CBS will televise the national title game on April 6, to be played at Lucas Oil Stadium in Indianapolis.
Earlier, CBS Corp. held the broadcast television rights to cover the NCAA tournament. ESPN, the cable and satellite television channel of The Walt Disney Company DIS was the first broadcaster to televise the early-round coverage of NCAA Men's Division I Basketball Championship and is all set to capitalize on the event.
The contest this time around will also be exciting with fans betting on the Sweet Sixteen, Elite Eight, the Final Four, and of course the champion. But way before the tournament sees its final basket, CBS Corp. and Time Warner investors are likely to enjoy solid returns.
So far in March, shares of both companies have jumped approximately 5% and could see an uptrend on dramatic moves in the tournament. With more viewership, high ratings and greater coverage, the companies are high-seeded for growth in their top line.
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