Espn case study

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ESPN ENTERTAINMENT SPORTS PROGRAMMING NETWORK

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Transcript of Espn case study

Page 1: Espn case study

ESPNENTERTAINMENT SPORTS PROGRAMMING NETWORK

Page 2: Espn case study

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

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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

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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

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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.

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ESPN – Challenges

•Loss of Corporate Intelligence

•Risky Business Ventures

Internal

•Spike in Payouts to Sport Leagues

• Increase in Competitive Forces

External

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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

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Emerging Competitors

Payout Increases to

Sports Leagues:

• NFL - $8.8 billion• MLB - $2.4 billion

*Over 50% annual

increase.

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Recommendations

Balance relationships

with distributors

while ensuring that they don’t

become competitors

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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

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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

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Questions?