ESPNENTERTAINMENT SPORTS PROGRAMMING NETWORK
ESPN – Timeline
First Broadcast So
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ESPN-Timeline
1979
ESPN’s First
Broadcast
1980
Became
24/7
Service
1983
ESPN goes
International
1984
ABC
acquires
ESPN
1987
ESPN is
awarded
NFL contract
1989
ESPN and
MLB reach a
4 year
contract
agreement
1992
ESPN launches
own radio
station
ESPN – Timeline
1995
ESPN.com hits the
web
1996
Walt Disney
Co. acquires
ESPN
1998
ESPN magazine
hits the stands
2002
Reaches an agreement
with NBA-making the
only network with 4 major
league sports
ESPN – TimelineSo
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ESPN – Current SituationSo
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ESPNOriginal, TV, Cable
& Radio Programming
ESPN Publishing
ESPN Online
ESPN Zone
ESPY Awards
X Games
ESPN Mobile & Wireless
ESPN International
ESPNSPORTSCENTER
ESPN - The Empire
SWOT Analysis
Strengths•A leader in sports broadcasting
•First to capture professional sports leagues (NFL, NHL, MLB)
•Strong Leadership - Management style allows for creativity on the part of its employees
•Collaboration with Disney (who owns ABC)
•Sportscenter is a well established brand for the network
•Available via multiple platforms such as: internet, TV, mobile applications, etc.
•Significant bargaining power with cable companies
•Bodenheimer actually does field-level research by leaving the box seats and mingling with sports fans to see what their thoughts are.
•Well diversified (Broadband, on-demand video, wireless, Dining etc.)-can go w/point #6
•ESPN is able to target the very desirable market segment of young male sports enthusiasts.
Weaknesses•Only focuses on major sports
•Costly
•Most viewers tune in when there is a live event
•Issues with cable operators
•Many major executives, such as Shapiro and Daly –left to join competitors.
•Forced re-alignment of top management.
•Operating in a very desirable market: Sports Programming: the last TV mass market for advertisers (brings motive for entry of competitors)
Opportunities•The success of ESPN Deportes
(Spanish) can serve as a template to further international growth
•New Mobile Applications
•Tie-ups with live sporting events
•ESPN Cellphone
•Other niches can still be captured like Tennis, Volleyball etc.
•ESPN Video/Mobile Games
Threats•Major competition looming (Cox
Network)
•Newscorp-could be a potential challenger-Fox Sports is a huge competitor on network television-reaches fans who do not have cable
•Does not feature NHL games
•Changes in leadership
•Comcast – Its biggest distributor may be in direct competation. ESPN has a delicate relationship with them
•Increasing fees by NFL/MLB
•NFL Network and other sport leagues coming out with cable networks.
ESPN – Challenges
•Loss of Corporate Intelligence
•Risky Business Ventures
Internal
•Spike in Payouts to Sport Leagues
• Increase in Competitive Forces
External
Internal
Challenges
Re-Alignment of Executive Management
• Lee Ann Daly - Chief Marketing Executive
• Mark Shapiro - Head of Programming and Production
Risky Business: ESPN Mobile Phone?
“Your phone is the dumbest f&%#ing idea I have ever heard of”
-Steve Jobs
Emerging Competitors
Payout Increases to
Sports Leagues:
• NFL - $8.8 billion• MLB - $2.4 billion
*Over 50% annual
increase.
Recommendations
Balance relationships
with distributors
while ensuring that they don’t
become competitors
Recommendations
• Focus on keeping key executives
• Consider locking executives into contracts
Internal Stability
• Provide incentives for creative, money generating ideas
• Encourage employees to generate evolutionary ideas for mobile apps
Reward Innovation
Recommendations
Scrap the idea of an ESPN branded phone
Focus on further developing the ScoreCenter, Watch ESPN, and other apps
•Strive for a flawless digital experience-Seemlessacross multiple digital devices
Continue to make sports t.v. appealing to live audiences in order to increase ad sales
Questions?
Top Related