Written in Fall 2016 for a Coursera Business specialization, this presentation is a SWOT analysis of ESPN, owned by Disney, and offers suggestions and analysis for what should be done about subscriber losses... Some of my suggestions are actually being implemented, such as the ESPN standalone streaming service.
3. ESPN ownership
• ESPN is 80 percent owned by ABC, Inc., which is
an indirect subsidiary of The Walt Disney
Company. The Hearst Corporation holds a 20
percent interest in ESPN.
4. ESPN primary business entities
• Television Networks – ESPN on ABC
(Broadcast), eight U.S. Cable Networks (five
with high-definition simulcast services),
Regional, Syndicated, Pay Subscription
Packages, 26 International Networks reaching
all seven continents
• Audio – ESPN Radio, ESPN Deportes Radio,
syndicated radio in 11 international countries
• Digital– ESPN.com; ESPNDeportes.com;
FiveThirtyEight.com; ESPN3; WatchESPN;
podcasts; apps; market-, college- and sport-
specific sites; games and more
• Publishing – ESPN The Magazine and other
periodicals in the U.S. and abroad
• Event Management – X Games, ESPYs, college
bowls & basketball games
• Multiplatform Business – espnW, a digital and
content-driven business
• Location-Based Businesses – ESPN Wide World
of Sports Complex in Orlando, ESPN Zone at
Downtown Disney in Anaheim, ESPN Club at
Walt Disney World
• Corporate Citizenship – Team ESPN, the V
Foundation for Cancer Research and more
7. ESPN Subscriber fees vs. Ad revenue
ESPN makes most of its money from cable-TV subscribers
8.
9. STRENGTHS
• Brand. “The Worldwide Leader in Sports.”
• ESPN is the go to source for sports news.
• Sports is a consistent ratings winner and
ESPN shows a lot of sports.
10. Adults 18-49 ……… thousands ………. vs. last year
ESPN …………………….. 913 ………….. down 8%
TBS ………………………. 833 …………. down 9%
USA ………………………. 729 …………. down 19%
AMC ……………………… 711 ………….. up 9%
DISC ……………………… 670 …………. up 3%
ADSM …………………… 669 …………… down 1%
FX ………………………… 610 ………….. down 18%
FAM …………………….. 511 …………… down 14%
HIST …………………….. 479 ……………. down 25%
BRAVO …………………. 478 ……………. down 12%
TOP CABLE ENTERTAINMENT NETWORKS
(Live plus-3 for Dec. 29, 2014-Dec. 16, 2015)
11. Total Viewers ……….. millions ………… vs. last year
ESPN …………………….. 2.11 …………. down 7%
FNC ………………………. 1.84 …………. up 4%
USA ………………………. 1.84 …………. down 14%
TBS ………………………. 1.80 ………….. down 1%
Disney …………………… 1.74 ………….. down 10%
DISC …………………….. 1.56 ………….. up 11%
HIST …………………….. 1.51 ………….. down 18%
TNT ……………………… 1.48 …………… down 16%
HGTV …………………… 1.48 ……………. up 12%
NICK ……………………. 1.40 …………… down 25%
TOP CABLE ENTERTAINMENT NETWORKS
(Live plus-3 for Dec. 29, 2014-Dec. 16, 2015)
16. OPPORTUNITIES
• ESPN International puts ESPN in over 61
countries and territories across 7 continents.
• Increasing popularity of eSports.
17. Examples of programming televised by
ESPN networks around the world
Soccer
• Argentine Football
• Brazilian League Campeonato Paulista &
Brasileirao
• Capital One Cup (English League Cup)
• Copa del Rey
• Copa do Brasil, including U-17 and U-20
• Ascenso MX
• Copa MX
• Coppa Italia
• Dutch Eredivise
• England U-21 National Team games
• English FA Cup
• English Premier League
• FIFA World Cup 2014 Qualifiers
• FIFA World Cup 2014
• FIFA World Cup Archived Matches
• French Ligue 1
• German Bundesliga
• German Cup
• Greek League
• Italian Serie A
• Liga MX
• MLS
• NextGen Series
• Portuguese Liga ZON Sagres
• Russian Premier League
• Spanish La Liga
Super Classicos Latinoamericanos
• UEFA Champions League
• UEFA Europa League
• UEFA Euro 2016
• Ukrainian League
Rugby
• Aviva Premiership
• Campeonato Argentino (South America)
• French Top 14
• Sanzer
• IRB Rugby World Cup
• Nacional de Clubes (South America)
• RBS Six Nations Rugby
• Rugby Championship
• Super Rugby (South America)
• URBA Championship (South America)
• Vodacom Cup (South America)
18. Examples of programming televised by
ESPN networks around the world (2)
Cricket
• Caribbean T20
Caribbean Super50
ICC
• Karbonn Smart Champions League T20
Golf
• Champions Tour
• LPGA
• Masters
• PGA Championship
• Sr. PGA Championship
U.S. Open
• Women’s U.S. Open
• PGA Tour (including The Players
Championship, The President’s Cup, OHL
Classic at Mayakoba and FedEx Cup Playoff
events)
• World Golf Championships
Tennis
• ATP World Tour (1000’s and 500’s)
• Australian Open
• Roland Garros
• Wimbledon
• U.S. Open Tennis Championships
• Mexican Open
Basketball
• FIBA Copa America (Basketball)
• NBA (National Basketball Association)
• WNBA (Women’s National Basketball
Association)
U.S. Sport
• Little League World Series
• MLB (Major League Baseball)
• NCAA College Football (Reg. Season,
Conference Championships, College Bowls
and College Football Playoff)
NCAA College Basketball (Pre-season
Tournaments, Reg. Season, Conference
Tournaments, post-season tournaments
including NCAA Championship (March
Madness for both men and women)
NCAA Championship Events-25 different
championships
• NFL (National Football League)
• NHL (National Hockey League)
Motor Racing
• AMA Supercross and Motocross
IndyCar Series and the Indianapolis 500
• MotoGP
• NASCAR
• NHRA (National Hot Rod Association)
19. Examples of programming televised by
ESPN networks around the world (3)
• America’s Cup Yachting
• Argentine Polo Open
• Giro d’ Italia
• ESPN Films
• ESPN Los Capitales del Futbol
• ESPY Awards
• Figure Skating (US Championship)
• FIH Champions Trophy Hockey
• FIVB World League Volleyball
• Hurlingham Polo Open
• IAAF Track and Field
• Ironman Triathlon
• La Vuelta a España
• Mega Fight Historical Boxing Films
• NYC Marathon
• Premier Boxing Championship Series
• Tortugas Polo Open
• Tour de France
• Venezuelan League Baseball
• World Series of Poker
• X Games Aspen Austin and Oslo 2016
20. Examples of programming televised by
ESPN networks around the world (4)
• Studio Shows Include:
• +Motor
• #Redes
• A Los Golpes
• Aussies Abroad
• Balón Dividido (soccer discussion)
• Bate Bola (soccer discussion)
• Béisbol Esta Noche (Baseball Tonight)
• Bola da Vez (athlete interviews)
• Capitanes
• Cronómetro (Spanish-language version of
ESPN’s Pardon the Interruption)
• Duetto (sport discussion)
• ESPN Radio Formula (leading AM/FM radio
network in Mexico)
• ESPN Report
• ESPN Run
• ESPN FC
• ESPN Dance
• ESPN Yoga
• Fuera de Juego (soccer discussion)
Fora de Jogo (Brazil soccer discussion
show)
• Fútbol Picante (Mexican soccer)
• Futebol no Mundo
• Goles de Europa
• Golpe a Golpe (boxing discussion show)
• Hablemos de Futbol (soccer discussion)
• Hazañas Doradas
• Juca Entrevista (studio interview show)
• Linha de Passe (sports round table)
• Los Capitanes (sports discussion)
• Loucos por Futebol (soccer history)
• MotoGP Highlights
• Nacion ESPN (Spanish-language version of
ESPN’s SportsNation)
• NBA Tonight
NFL Esta Noche (NFL Tonight)
NFL Primetime (Spanish Version)
• NFL Semanal (NFL weekly)
• Pardon the Interruption (Australia)
• Pontapé Inicial
• Pura Química (talk show)
• Revista del Turf
• Segredos do Esporte (ESPN Sports Science)
• Simplemente Fútbol (soccer)
• SportsCenter (news/information)
• SportsCenter Headliners
• SportsCenter Primera Plana
• The Book is on the Table
• Toque Inicial
22. THREATS
• Subscriber loss (cord-cutters and cord-shavers).
• Increased competition from other sports
networks, particularly Fox Sports.
23.
24. Measures already in place to manage
subscriber numbers
• WatchESPN provides online viewing of ESPN, tied
to an existing cable-TV subscription.
• Inclusion in Sling TV over-the-top (OTT) pay-TV
service and Sony Vue.
25.
26.
27.
28. Other options for managing
subscriber numbers
• Start a standalone online subscription service like
Netflix, Hulu and Marvel Unlimited.
• Create an online subscription service to archived
sports events.
32. CONCLUSION: The way forward
• Negotiate sports broadcasting contracts with
changing revenue guidance in mind, but retaining
quality content is the primary concern.
• Include ESPN in bundles and other platforms.
• As necessary, offer standalone subscription services.