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ESPN: Broadband Strategy

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ESPN: Broadband Strategy Onnie Bose Mark Hicken George Hsin Shamus Prindiville ESPN: A History created in 1979 as then-unheard of 24 hour all-sports network known to ... – PowerPoint PPT presentation

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Title: ESPN: Broadband Strategy


1
ESPNBroadband Strategy
  • Onnie Bose
  • Mark Hicken
  • George Hsin
  • Shamus Prindiville

2
ESPN A History
  • created in 1979 as then-unheard of 24 hour
    all-sports network
  • known to be a creative and innovative network,
    willing to take risks
  • continues to move into unproven markets with
    remarkable success
  • espn2 added in 1993
  • ESPNews added in 1996
  • ESPNet Sportszone (now ESPN.com) launched in late
    1994

3
ESPN Internet Ventures
  • Over 12 million unique impressions per day at
    ESPN.com
  • 22 million visits at associated sites (NASCAR,
    NFL, NBA, ABC Sports)
  • A mature player, the worldwide leader

4
Main Competitors
  • CBS Sportsline
  • The Sporting News
  • CNN/SI
  • Yahoo! Sports
  • America Online

5
Looking Forward
  • Cannot rely solely on brand equity
  • Provide a value-added experience
  • Anticipate broadband and online video delivery
  • Focus on strengths in sports analysis

6
Broadband and its implications
  • The ability to transmit seamless voice, data, and
    video content
  • the Wall Street Journal (10/98)
  • Web entertainment is about viewers manipulating
    the programming to entertain themselves, The
    denizens of cyberspace dont just want to watch
    the show - they want to be the show.

7
ESPN and the Sports Media Industry
  • Providing live game content is expensive
  • nearly 2 billion for NFL television rights
  • highly competitive
  • News, commentary, and feature programming drives
    revenue
  • SportsCenter, NFL PrimeTime, Baseball Tonight
  • analysis is ESPNs core competency
  • advertising revenue for these programs are among
    the industrys highest

8
Implications for ESPN
  • The cost of sports content is escalating
  • large network competition drives up costs
  • ESPN should focus on delivering cutting edge
    analysis, commentary, and interactivity instead
    of broadcasting content
  • in-line with ESPNs history and competencies
  • keeps in mind the implications of broadband and
    the demand for compelling content

9
ESPNs focus on analysis
  • Partnerships and alliances (co-opetition) with
    traditional sports broadcasting networks
  • Provide interactive media applications (Praja),
    fantasy leagues, and discussion forums
  • Video content from partners surrounded by ESPNs
    interactive applications and analysis
  • Becoming the Bloomberg of sports

10
The Goals
  • Short term
  • leverage competency in sports analysis
  • interactive service through traditional Internet
    connections
  • Long term
  • real, live interactive television when broadband
    delivery becomes feasible and widely-available

11
The Product
  • Streaming video content of game action (provided
    initially by ESPN or ABC Sports, and eventually
    by partnerships with networks)
  • Surrounded by ESPN analysis and interactive
    content

12
(No Transcript)
13
Critical Issues Grid
14
Critical nodes in ESPNs Hugin Model
  • Acceptance of new product by users
  • Ability to cross-brand content (from
    broadcasters) to ESPN site
  • Revenue model subscription v. advertising

15
Hugin!
16
Conclusions
  • Broadband is inevitable--act early
  • Costs of going forward with the project are
    relatively negligible
  • In almost any case, the project will be
    successful
  • Natural step in ESPNs evolution
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