Espn Final Case Study

8/12/2019 Espn Final Case Study

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Running Head: ESPN Case Study 1

ESPN Case Study

Jordan Cox-Smith

Professor Liz Kerns

Central ashington !ni"ersity


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ESPN Case Study 2

ESPN Exe#uti"es

John S$i%%er: President of ESPN&n#'

Christine (riessen: Exe#uti"e)i#e President and Chief*inan#ial +ffi#er

John ildha#$: Exe#uti"e )i#ePresident of Produ#tion

Ed (urso: Exe#uti"e )i#ePresident and Head of,dministration


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ESPN Case Study 3

John ,' alsh: Exe#uti"e )i#ePresident and Exe#uti"e Editor

Sean rat#hes: Exe#uti"e )i#ePresident and Head of Sales and.ar$eting

John Kosner: Exe#uti"e )i#ePresident of (igital and Print.edia

Charles Pagano: Exe#uti"e )i#ePresident and Chief /e#hnology+ffi#er


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ESPN Case Study 4

Nor0y illiamson: Exe#uti"e)i#e President1 Head ofProgramming

Russell olff: Exe#uti"e )i#ePresident and .anaging (ire#torof ESPN &nternational

Photo Credit: ESPN.com


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ESPN Case Study 5

.ission Statement

ESPN2s mission statement is as follo3ed: 4/o ser"e s%orts fans 3here"er s%orts are3at#hed1 listened to1 dis#ussed1 de0ated1 read a0out or %layed'5 /his is 3here ESPN earned someof its ni#$names li$e 4E"ery S%orts Parti#le Notated5' &n our so#ieties thirst for information hasin#reased ex%onentially and it is essential more no3 than e"er that %eo%le ha"e the a##ess to thisinformation a#ross multi%le mediums' ESPN has tailored there organization to fit that s%e#ifi#need' !sing a "ariety of media mediums1 ESPN has a##om%lished more than the Rasmussen2sand Eagan thought %ossi0le 0a#$ in 6789'

ESPN also has a set of #ore "alues that they define their #ulture 3ith at the organization'Here is ESPN2s statement on their "alues: 4Peo%le are our most "alua0le resour#e1 and #are andres%e#t for em%loyees and ea#h other 3ill al3ays 0e at the heart of our o%erations' e em0ra#edi"ersity to 0est ser"e all s%orts fans 3orld3ide1 and 3e are %assionately #ommitted toteam3or$1 uality1 #reati"ity1 integrity1 and the aggressi"e %ursuit of ne3 ideas1 audien#e gro3thand 0uilding shareholder "alue15 ;ESPN'#om


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ESPN Case Study 6

a#$ground of ESPN &n#

=&f you lo"e s%orts'''if you really lo"e s%orts1 you>ll thin$ you>"e died and gone to s%ortshea"en'=/his uote 0y former ESPN an#hor Lee Leonard 3as the o%ening statement to the firstairing of ESPN onSe%tem0er 81 6787' , lot of %eo%le say that these 3ords 3ere 3hat s%ar$edthe s%orts #o"erage re"olution 3ithin our so#iety'

/oday in our so#iety1 s%orts ha"e an influen#e in our #i"ilization li$e no other1 and a lot ofthat #an 0e #redited to the #reation of the ESPN net3or$ 3hi#h #ata%ulted the need for s%ortsinformation' ESPN &n# ;Entertainment and S%orts Programming Net3or$< 3as de"elo%ed 0y illRasmussen starting in 6789 3hen Rasmussen de#ided that it 3ould 0e a good idea to 0road#asts%orting e"ents "ia satellite to #a0le #ustomers' Rasmussen 3as originally the #ommuni#ationsmanager 3ith the Hartford halers ho#$ey team in 6789 3here he 3as laid off from his %ositionand then de"elo%ed the interest to get in"ol"ed in the tele"ision mar$et' +ne of his original ideas3as to #reate a station that %ro"ided lo#al #o"erage for the Hartford halers in Conne#ti#ut'

,longside ill 3as his son S#ott Rasmussen and ,etna insuran#e agent Ed Eagan' ,t the

time1 this 3as a re"olutionary idea and a lot of indi"iduals dou0ted the %otential of su##ess forthe %rogram' ESPN first aired in 6787 3hi#h 3as the 0eginning of a re"olution that 3ent 0eyondRasmussen2s 3ildest dreams as an out of 3or$ ho#$ey announ#er' ill2s first ste% in the #reationof his em%ire 3as 3hen he leased s%a#e on an RC, satellite for ?@ hours and 8 days a 3ee$' utit 3as not until a #ou%le of years after the #reation of the organization that ESPN 0egan airing ?@hours a day' ESPN 0e#ame the first s%orts net3or$ to tele"ise #om%lete s%orts #o"erage' ESPN2searly finan#ing #ame from Aetty +il 3ho in"ested B6 million in the #om%any to o0tain a#ontrolling in"estment ;*undinguni"erse'#om


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ESPN Case Study 7

#ountry to 0e featured on their %rogramming' E"ents are #onstantly 0eing held at ESPNheaduarters for 0oth their internal and external audien#es'


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ESPN Case Study 8

S+/ ,nalysis

Strengths: What makes the ESPN Network so strong is the fact that they have such alarge target audience and have the ability to use multiple mediums to reach thoseaudiences. ESPN holds rights for various professional and college sports programmingincluding N!" N#$ the SEC $CC and Pac %& college football and basketballconferences N$SC$' and ("#. )his means that they have a large market share of thesports broadcasting market. What makes this interesting is the fact that one of their maincompetitors $#C is also owned by the Walt *isney Company who owns the rights toESPN. $nother strength of ESPN is that they are beginning to incorporate more sportsthat are popular outside of the states. ESPN reali+es the value that is in having a stronginternational market.

Weaknesses:)he decrease at Cable Networks was driven by the closure of five ESPN,one restaurants in -une &% /Walt *isney Company $nnual 'eport &%%0. )his causesa drop in broadcasting revenues down to 123 million. Even though ESPN picked up a fewnew deals with Cricket along with other sports to make up for the slack on the revenue

side of things it is still a big hit. )he closing of restaurants such as ESPN ,one canin4ure an organi+ations public reputation. When companies are forced to closedepartments within their organi+ation it shows a side of weakness within the companythat may damage your corporate reputation.

5pportunities: ESPN has the opportunity to e6pand its market to the world of mi6edmartial arts. )his has to be one of the fastest rising sports in our culture right now andESPN has the opportunity to capitali+e on attracting a new audience. (ost recently$nderson Silva of the 7ltimate !ighting Championships /7!C0 was fighting Chael

Sonnen for the belt and 8 noticed that on ESPN9s SportsCenter that they actually hadhigh lights of the fight which is usually a rarity. )his is a great e6ample of how the ESPNnetwork is e6panding their hori+ons. ESPN now offers a show called (($ "ive whichfeatures former fighters and fight analy+ers to discuss the fight world and upcomingmatches and events all over the world. )his has attracted a new audience that waspreviously an untapped market. )here are not a lot of networks that cover fights becauseof the direct violence that it promotes. 8 personally noticed when watching the shows thatthey do not show some of the more bloody cruel fights since they do have to pay attentionto their younger more influential demographics.

)hreats: 8t is &%& which means that the 5lympics are here this can prove to be a greatthreat to ESPN. )he 5lympics ames have a deal with N#C to e6clusively show thegames on their network. Even though people are going to want to watch SportsCenter tocatch the highlights of the games N#C Sports garner a lot more attention as ESPN losesa large part of their audience who want to get the full e6perience of the games throughN#C. ESPN usually has a harder time of keeping ratings up during the summer 4ustbecause there are not too many sports going on. #asketball and hockey season is overfootball has not started yet and the only sport to cover is golf and baseball. $ slow


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ESPN Case Study 9

summer of sports combined with N#C e6clusively covering the 5lympic ames has thepotential to take a large portion of their target audience.


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ESPN Case Study 10

/imeline of ESPN &n#

6789: ill Rasmussen forms Entertainment S%orts Programming Net3or$1 &n#' ;ESPN< to0road#ast s%orting e"ents to #a0le tele"ision o%erators "ia satellite'

6787: ESPN 0egins 0road#asting on a limited-time 0asis'

679: ESPN 0egins 0road#asting ?@ hours a day1 se"en days a 3ee$'

679: ESPN 0egan to distri0ute its %rogramming internationally'

679@: ,C1 &n#' a#uires ESPN'

679: Ca%ital Cities Communi#ations1 &n#' a#uires ,C and 0e#omes Ca%ital CitiesI,C1 &n#'

6798: ESPN 0egins 0road#asting National *oot0all League games'

6799: ESPN &nternational is #reated'

6797: ESPN 0egins 0road#asting .aDor League ase0all games'

677: /he Hearst Cor%oration a#uires a ? %er#ent interest in ESPN from RJR Na0is#o &n#'

6776: ESPN Radio Net3or$ is laun#hed in #onDun#tion 3ith the ,C Radio Net3or$'

677?: ESPN Radio 0road#ast in #ities all o"er the #ountry'

677: ESPN? 0egins transmission'

677: alt (isney Com%any a#uires Ca%ital CitiesI,C1 &n#' and 0e#omes ESPN>s %arent#om%any'

6778: ESPN %ur#hases the Classi# S%orts Net3or$ and laun#hes ESPN Classi#'

6779: ESPN: /he .agazine is laun#hed'

?: ESPN H(1 a high-definition tele"ision s%orts net3or$1 is introdu#ed'

&; Events: )he year &; was a very active year when it comes to building there brand nameeven stronger.

-anuary * a high=definition simulcast service of ESPN& launches.

(arch 3 &; = ESPN7 a &3=hour network devoted to college sports launches

$pril %? &; = ESPN $c@uires (onday Night !ootball for eight years beginning in&


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ESPN Case Study 11

*ecember B &; = ESPN announces eight=year agreement with N$SC$' &B = &%3.

?8- ESPN announ#es eight-year1 multi-%latform agreement 3ith the ig 6?'

?9 - ESPN tele"ises i#hita *alls Rider at Sul%hur S%rings

ESPN Slogans /imeline

%2B2=%2?; = )he )otal Sports Network

%2?;=%22% = )he Number 5ne Sports Network

%22%%223 = $ll Sports $ll the )ime

%223%22? = $mericaAs No.% Sports Network

%22?Current = Worldwide "eader in Sports

http://www.myssnews.com/news/2008/September/nt090908-2.html

http://www.fn!"n#n"$erse.com/comp%ny-h"stor"es/espn-"nc-h"story/
http://www.myssnews.com/news/2008/September/nt090908-2.htmlhttp://www.fundinguniverse.com/company-histories/espn-inc-history/http://www.fundinguniverse.com/company-histories/espn-inc-history/http://www.myssnews.com/news/2008/September/nt090908-2.html


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ESPN Case Study 12

Case Study ,nalysis

ESPN.Com Changes Communication Strategies with )echnology $dvancement

ESPN2s su##ess #ould 0e #redited to their strong %ersuasi"e mar$eting #am%aigns' ,ll ofthe mar$eting #am%aigns that ESPN has %rodu#ed ha"e shared the same 0asi# %ur%ose1 toedu#ate a"id s%orts fans that ESPN is the %la#e if you 3ant #om%lete 3orld3ide s%orts #o"erage?@I8 through multi%le mediums' Claiming to 0e the 3orld3ide leader in s%orts means that youha"e to 0a#$ it u% 3ith fla3less #o"erage1 3hi#h ESPN attem%ts to do'

/he first #am%aign that & analyzed 3as the de"elo%ment and #onstant im%ro"ements toESPN2s 3e0%age ESPN'Com' ESPN'Com laun#hed on Se%tem0er 1 6779 0y the ESPN &nternetArou%1 as the su##essor to ESPN S%ortsone1 3hi#h de0uted ,%ril 61 677' ,t first1 the 3e0%age3as %retty 0asi# and only offered s#ores and re%orts of the games along 3ith %hotos and later on"ideos' ESPN'#om is a %rodu#tion of ESPN &nternet Arou% %art of alt (isney &nternet Arou%3hi#h featured a team of designer2s 3hose single goal 3as to reno"ate the internet s%orts mar$et'

ESPN'Com 0egan seeing extreme traffi# through its 3e0%ages 3hen they startedin#or%orating %rogramming #o"erage on the 3e0%age in #om0ination 3ith ex#lusi"e &nsider#o"erage' ESPN 3ent on to release ESPN and ESPN 3hi#h allo3ed fans to see li"e%rogramming and e"ents online e"en if they do not ha"e #a0le' /his 3as #onsidered a game#hanger in the s%orts #o"erage 3orld1 ESPN allo3ed the fans to get s%orts #o"erage literally3here e"er they 3ere in the 3orld' ESPN sho3ed #o"erage of li"e s%orting e"ents1 re%laysof %er"ious e"ents1 and also s%e#ial #o"erage of u%#oming e"ents 0y different an#hors and0road#asters' /hey also de"elo%ed an a%%li#ation that allo3s for the user to steam footage fromhis or hers #ellular de"i#e'

ESPN sho3s #li%s from a "ariety of %rograms on the net3or$ so that the %u0li# #anget the full ex%erien#e e"en though they are not 3at#hing the a#tual #hannel or are on the a#tual3e0 %age' Some of the %rogramming that they offer in#ludes Pardon the &nterru%tion1S%ortsCenter1 N*L Li"e1 .., Li"e1 N, Countdo3n1 N, Coast to Coast1 S%orts Nation1.i$e and .i$e in the .orning1 *irst /a$e1 and ase0all /onight'

/he ESPN &nternet Arou% also de"elo%ed s%e#ialty sites to #om%ete 3ith other net3or$sthat offered1 at the time1 more s%e#ialized #o"erage online' +ff of ESPN'Com1 here are additional3e0%ages that they are res%onsi0le for de"elo%ing:

5ther E8 productions:

N!".com /launched September % %22


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ESPN Case Study 13

Soccernet soccernet.comF /launched $ugust & %2220

$#CSports.com /launched $ug. &


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ESPN Case Study 14

ESPN *ocumentaries and Specials

Loo$ing %ast all of the su##ess for the %ast #entury1 ESPN sa3 a %otential target audien#ethat has not 0een ta%%ed' ESPN 3ent on to de"elo% do#umentaries and s%e#ials a0out athletes1teams1 and %rograms li"es outside of the game' &n 6771 ESPN 3ent on to %remier +utside theLines 3ith o0 Ley 3hi#h 3as a %rogram that featured re%orts dis#ussions 3ith Dournalist1an#hors1 and #urrent and former %layers in a dis#ussion format' +/L allo3s for #o"erage

outside of the game and allo3s for fans to see %ro0lems surrounding athleti#s outside of the#ourt' S#andals su#h as the Sandus$y and Penn State #hild a0use s#andal1 the im%a#t ofHurri#ane Katrina on Ne3 +rleans and the Saints1 Steroids im%a#t on Little League ase0all%layers along 3ith many other #ontro"ersial and ins%irational to%i#s' +/L has had a %arti#ularlylarge im%a#t on %o%ular #ulture Dust 0e#ause of the #ontro"ersial to%i#s that are 0eing dis#usseddaily' o0 Ley and his team seem to al3ays 0e dis#ussing #ontro"ersial to%i#s that stir u% a lot ofde0ate 3ithin %o%ular #ulture 3hi#h is a great 3ay to attra#t a larger audien#e 0e#ause ourso#iety feeds off of #onfli#t'

/he style of re%orting that +/L %ra#ti#ed #aused other ESPN %rograms su#h asS%ortsCenter and N*L Li"e' Journalist and an#hors no3 loo$ for stories that ha"e a mu#h dee%er#onne#tion to the %u0li#1 and #ontro"ersial and ins%irational stories are a great 3ay toa##om%lish that'

ESPN9s -immy G !oundation Campaign

ESPN made a great mo"e in the right dire#tion 3hen they too$ on the tas$ of #hangingthe image of the organization 0y 0e#oming one that gi"es 0a#$ to the #ommunity and is a#ti"elyin"ol"ed' Charity donations to foundations 3ere ty%i#al 0ut ESPN de#ided to ta$e it to the next

le"el after an ins%irational moment at ESPN2s a3ards sho3 on the ESPG ,3ards in 677'

4(on2t Ai"e !%M(on2t E"er Ai"e !%5 3as the famous line that stru#$ the audien#eshearts as Jim )al"ano1 former 679 NC,, 0as$et0all National Cham%ions North Carolina StateHead Coa#h1 )al"ano 3as also an extremely %o%ular #ollege 0as$et0all #ommentator andanalyst' ,fter 0eing diagnosed 3ith 0one #an#er in 677?1 Jimmy 3ent on to ma$e a s%ee#h at theESPG a3ards in 677 that 3ould #a%ture the heart of millions' He %rea#hed for e"eryone toenDoy the little things in life 3hile you still #an1 and that emotions are the true 3ay to #onne#t toone2s self' Jimmy says it 0est at the end of his s%ee#h1

HCancer can take away all of my physical abilities. 8t cannot touch my mind it cannottouch my heart and it cannot touch my soul. $nd those three things are going to carry on

forever. 8 thank you and od bless you all.IO-immy Galvano $cceptance Speech atESPJ9s in %22D.

Sin#e 6771 B7 million has 0een raised for /he ) *oundation1 and resear#h grants area3arded nation3ide for all ty%es of #an#er than$s to the efforts of the ) *oundation and ESPN6F of the donations go dire#tly to #an#er resear#h'


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ESPN Case Study 15


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ESPN Case Study 16

,udien#e

hat ma$es ESPN the num0er one s%orts net3or$ in the 3orld is 0e#ause of ho3effe#ti"ely they are a0le to target there large audien#es' /his #an 0e #redited to their a0ility to$ee% u% 3ith ne3 te#hnologies and find a 3ay to in#or%orate s%orts #o"erage 3ith them' , %rimeexam%le of this #an 0e seen 3ith the de"elo%ment of ESPN (' ESPN ( 0egan in ?6 3hereon January th1 they announ#ed that it 3ould laun#h a ne3 ( tele"ision #hannel' /he #hannellaun#hed on June 66th1 ?6 3ith #o"erage of the ?6 *&*, orld Cu%'

ESPN ( 3ould go on to air 6 e"ents in the first year of original e"ents 0ut to hel% theni#he mar$et that a#tually o3n ( /)2s1 they de#ided to s3it#h to a ?@ hour format' ith thene3 ?@ hour format1 ESPN sho3ed re%lays of %re"ious e"ents and also international e"ents'ESPN offers di"erse %rograming to target a gro3ing international audien#e' Sho3s li$e (an Leatard &s Highly uestiona0le 3hi#h features a Cu0an s%orts Dournalist and his father dis#ussing"arious to%i#s 3ith a Latin #ulture s%in to it'

(emogra%hi#s

ESPN has a 3ide range of demogra%hi#s that #a%ture e"en an international audien#e' /hemain demogra%hi# for ESPN are males 0et3een the ages of 69 and @ 3ho are edu#ated1 andalso true s%orts fans' Here is ESPN2s demogra%hi# resear#h statisti#s off of ESPN2s media $it offtheir 3e0site'

4ESPN'#om is the leading %ro"ider of s%orts on the &nternet'/he %rime user of ESPN'#om is the young1 affluent1 male a"ids%orts fan'5 ;ESPN'Com

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