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ESPN: Broadband Strategy

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 be a creative and innovative network, willing to take risks

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ESPN: Broadband Strategy

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  1. ESPN:Broadband 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 don’t 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 ESPN’s core competency • advertising revenue for these programs are among the industry’s 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 ESPN’s history and competencies • keeps in mind the implications of broadband and the demand for compelling content

  9. ESPN’s 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 ESPN’s 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. Critical Issues Grid

  13. Critical nodes in ESPN’s Hugin Model • Acceptance of new product by users • Ability to cross-brand content (from broadcasters) to ESPN site • Revenue model: subscription v. advertising

  14. Hugin!

  15. 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 ESPN’s evolution

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