Intel Corp. claimed last week that it would turn out to be a foremost investor of the International Olympic Committee (IOC), making itself the new tech firm to put marketing pennies to support the worldwide sporting event.
The new contract, which will last till 2024, comes a week post longtime Olympics investor McDonald’s Corp. stepped out of its sponsorship contract untimely, mentioning a modification in the priorities of the company as it attempts to hold low costs.
Intel links about most of the international Olympics investors such as Samsung and Coca-Cola Co. about 6 months post Chinese e-commerce firm Alibaba made a contract that will last till 2028. The IOC has been attempting to make the Olympics more tech savvy and appealing for youngsters through its Olympic Channel, the online content network.
Thomas Bach, President of IOC, who made the contract with Brian Krzanich, Chief Executive Officer, Intel, said to the media in New York that Intel’s support will unlock new experiences for fans, athletes, and spectators as it anticipates to bring in virtual reality.
Fiscal terms of the contract were not revealed but IOC sources have earlier told the media that foremost investors pay about $100 Million for each 4-year cycle, which comprises 1 winter and 1 summer games. The IOC has been tending to increase the price of those deals, sources earlier claimed.
Intel claimed that it might offer virtual reality, 5G wireless technology, drones, and artificial intelligence platforms to the Games. “We will permit people who are online to experience like they are actually present at the event,” Krzanich claimed about technology that will be employed during the Games.
Intel’s business has experienced big opportunities in last few years. In March, it decided to obtain autonomous vehicle tech company Mobileye for $15 Billion in an attempt to extend its reach further than its core microprocessor trade, which has experienced falls along with the personal computer industry.
The IOC is tending to sign costlier deals while brands are trying to understand whether limited Olympics sponsorship rights provide them with desired marketing impact they once did. Some firms find it is much affordable to work straight with specific countries or athletes than the IOC.
Intel may be looking to extend its reach in Asia, which is planning to host 3 successive Olympic Games. Beijing is hosting the 2022 winter games, Tokyo is hosting the 2020 summer Olympics, and South Korea’s Pyeongchang is hosting the 2018 winter games.