Espn case study

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?