9. The Bottom Line
Revenue
▸ Subscription payments + Sponsored videos
▸ Average active users/month: 2M
▸ Revenue after 6 months: $55M
Expenses
▸ Initial Investment + Monthly Costs
▸ Costs associated with development: $4M
▸ Video creation and talent: $5M*
▸ Marketing expenses: $4M
▸ Avg. Monthly Costs: $6.5M
*1 month of content
10. Benefits of
ESPN Elevate
▸ Attracts new customer segment
▹ Fitness fans
▹ Women
▸ Opportunity for new sponsorships
▹ Collaborating with unique
brands
▸ New way of interacting with fans
11. Implementation
▸ Launch around the New Year
▸ Promote throughout the year
▹ Crossfit Games
▹ CFP
▸ Advertise on website, TV, radio,
print
▸ Free Trial
-Growing population that is using smart phones
http://research2guidance.com/2013/03/07/the-market-for-mhealth-app-services-will-reach-26-billion-by-2017/
http://www.statista.com/statistics/189562/daily-engagement-of-the-us-poppulation-in-sports-and-exercise/
DailyBurn
Biggest Competitor on the market
Comparable with P90X- [DailyBurn was produced by the Director of P90X]
Workout videos led by trainers- sometimes feature special guests/celebs
Daily Live videos at 9 am each day
Videos on demand for 24 hours
Inconsistent Pricing displayed on App Store:
DailyBurn Basic $12.99
DailyBurn Basic $14.99
DailyBurn All Access $9.99
Daily Burn Premium $24.99
Daily Burn Premium $26.99
DailyBurn All Access $89.99
Offers a 30 day free trial
Approx 2.5M members
Myfitnesspal- 4.2M users
Searchable food and exercise database
Personal Diet Profile and Goals
Free version: includes ads
premium version- $9.99 a month
Premium version involves advanced tools, better analysis of food input, and exclusive content- articles and tips only available for premium users
Health drawbacks: counting calories may not be considered the healthiest way to lose weight.
Other parts of foods including: fat, protein, and carbs should be considered to maintain a healthy lifestyle.
http://espnmediazone.com/us/espn-inc-fact-sheet/
-Search by sport, live video, comments section, ability to follow friends, other possible features and information about our app. Cross platform integration, subscription pricing, collaborations with Disney/ABC (Robin Roberts), low price
-Ages 18-34
-Reach female demographic
-Fitness fanatics that may not follow sports
-Keeping simple layout and navigation
-Sponsored videos will cover the cost of athletes
-Customer loyalty program (incentives to make $)
-Subscription payments will add revenue
-Free to download but need monthly subscription of $2.99 (a lot of people are skeptical of free info)
-People are also more excited to use the app to get their $ worth (make it into a habit and drive viewership since they are already paying for it)
This slide will show how we accomplish our goals from slide 6
-When we mentioned a new customer segment, we felt that this app would be able to broaden our horizons with people who are health conscious.
-Not all fitness fans are sports fans and vice versa
-Through this app we are also trying to increase our growing female fan base.
-Ex: food and beverage (protein bars), apparel (Lululemon)
-New relationships with fitness brands may not be considered sports related
-Interacting with fans whether it will be with sports science or with ESPN anchors and their work out
Interact directly with fans through comment feature
Users Feel more connected to the anchors, athlete, and the ESPN brand itself
-Crossfit Games in the summer
-On site activation with college football and other espn properties
-Own event or tent and promote the app that way directly to fans specifically on CFP
-On College Game Day, we will have games for people to play and be interactive with the app
-1 month free trial
-Collaborating with existing Fitness Trackers such as Fitbit by syncing our app
-Other collaborations include creating our own playlist to optimize app
-Will be using SDK (analytics tool to show how users are interacting with the app)
Possible Updates could include diet plans