1. ESPN
I n t e r n a t i o n a l M e d i a
C o n s u l t i n g
N u n n D r i v e H i g h l a n d H e i g h t s ,
K Y 4 1 0 9 9
8 5 9 - 5 7 2 - 5 1 0 0
1 0 / 2 4 / 2 0 1 5
ReinvigoratingGrowth and
Renewing Interest
ProposedactionforESPN to reverse negativetrendsand
increase projected growth.

2. ESPN 1
Introduction
ESPN, the worldwide leader in sports has run into a
rough patch lately. Amid a flurry of negative news articles
concerning lay-offs, stock drops, and decreasing growth,
ESPN must find a course of action to correct these issues.
International Media Consulting has developed a campaign
designed to reinvigorate the network. Proposed actions will
work to create positive media attention, reverse the negative
stock trends, and increase the shrinking growth projections.
Along with this is a timeline that details the campaign’s
sequence of events and a breakdown of International Media
Consulting’s role within the campaign, as well as an overview
of the firm.
Background
ESPN is a 24-hour television network that specializes in
sports. The network consists of multiple smaller versions of the
network, ESPN2 and ESPNnews, ESPNdeportes, ESPN3, ESPNU
and so on. ESPN’s largest income derives from cable subscribers.
ESPN earns $5-$6 per cable subscriber, regardless of whether or
not the subscriber watches ESPN or any of their other stations.
ESPN also has an online streaming service called
WatchESPN, and can easily be accessed through their website.
WatchESPN requires a cable subscription to view content, so
that only paying subscribers can see the content.
Cable subscriptions have been falling over the past few
years in exchange for cheaper online streaming services. The
professional title of “Cable uninstaller” has become common
and has had an impact of ESPN’s profits, which has caused the
company some trouble.
The Situation
In August of 2015 Disney lowered ESPN’s projected
growth. This action was taken due to lower advertising revenues
“ESPN, Inc., The Worldwide
Leader in Sports, is the
leading multinational,
multimedia sports
entertainment company
featuring the broadest
portfolio of multimedia
sports assets with over 50
business entities. Based in
Bristol, Conn., with4,000
employees (7,000
worldwide) ESPNPlaza
includes 950,000square
feet in 16 buildings on 123
acres (116 contiguous),
with additional office space
(400,000sq. ft.) rented
nearby. The company is 80
percent owned by ABC,
Inc., an indirect subsidiary
of The Walt Disney
Company. The Hearst
Corporation holds a 20
percent interest in ESPN.”
(ESPN, 2015)

3. ESPN 2
reported for the first half of 2015. The lower advertising revenues stem from viewers
abandoning their cable subscriptions for alternative online streaming services. ESPN’s lowered
projected growth triggered investors to sell their shares in the company, which dropped ESPN’s
stock value 20%. Negative media attention from this event resurfaced on October 21st when
ESPN announced that they were going to layoff approximately 300 employees.
The layoffs come due to the lower earnings for the company and the rising cost of
programming. Broadcasting rights with the NBA will expire in the coming years and must be
renegotiated. The NBA’s new asking price has tripled since the previous deal to $1.4 billion per
year. This price increase is reflective across all major sports including the NFL, MLB and NCAA.
The rising cost of the broadcasting rights for these major sports have led ESPN to cut %4 of their
Bristol Headquarters’ workforce. Many of these employees have been reported to have six-
figure payrolls.
Negative media attention has consumed the announcement of the layoffs and has
caused past events, such as August’s stock drop and lowered projected growth rates to
resurface. This issue demands immediate attention.
Dangers
The previously mentioned situation is accompanied by many risks if action is not taken
immediately. ESPN’s negative publicity from recent events will continue to impact stock, as well
as the network’s growth rate. Customers are also continuously switching from cable to
alternate means of viewing content, primarily through online streaming services. This fact has
begun to lower the cost of network advertising, and the quality of advertisers on the cable
network. The continuous drop in advertising revenue will further lower the growth projections,
which will in turn cause ESPN’s stock value to drop even further.
As profits continue to fall, the ability and extent to which ESPN will be able to renew
broadcast rights for major sport organizations will be negatively impacted, which will ultimately
send the network into a downward spiral.
Campaign
The Campaign that we designed for ESPN will correct the negative media attention by
mitigating the effect of the recent layoffs and creating and distributing positive media. The

4. ESPN 3
campaign will also offer a new model for ESPN to begin as well as encourage users to return to
cable subscriptions. The Campaign is laid out to take place over the course of three months
(Nov.-Jan.).
Objectives
 To increase cable subscribers.
 To raise awareness for WatchESPN.
 To increase stock market value.
 To mitigate negative publicity from recent events.
 To replace falling profits from cable subscribers.
Actions
We will create a letter from the president or other high level executive to be released to
the public. This letter explain why the layoffs were necessary to continue providing exceptional
sports coverage for viewers and continue to run the network at a high level. This will also
explain the rising costs of the newest NBA deal and the layoffs were actions taken to create
room for the network to afford the deal and broadcast the NBA to its viewers. It is most
important that the letter detail the terms of the deal given to employees who fell victim to the
layoffs. This includes the 60-day minimum notice, the severance package that reflects the
number of years of service that individual employees gave to the company, and the outsource
program that will be assisting all these employees in finding future employment.
We will develop a free trial incentive for WatchESPN which will allow users 30-60 days
of free service with ongoing support and consistent encouragement for trial customers to
purchase cable services. This free trial will allow for consumers to make a decision on the
service after experiencing it as well as give us measurable numbers to work with on what the
interest might be with WatchESPN as the network decides whether or not the streaming service
is worth investing in.
Along with this free trial we will also send out a Video News Release which will give a
brief outline of the service and its new free trial program, how customers can get started using
it, and a quick tutorial of how to use the site.
The VNR will then double as advertising material as it will be possible to edit down the
VNR and pull out important parts to advertise the streaming service while giving a quick tutorial
on how to get started for new customers.

5. ESPN 4
This during the three month period that we offer the free trials we will also begin
placing events exclusively on one or the other of the various platforms. This will force users to
try the WatchESPN service or to purchase a cable package to view a broadcast on the ESPN
television channel. Alongside the exclusive programming we will release monthly media guides
that will help consumers find where the program that they want to view is being broadcasted
to.
A feature story will be distributed that will explain how ESPN is an evolutionary
company that will do what is necessary to provide services to its paying customers, as well as
their forward thinking attempt to bring a new focus to their online streaming service
represented by this campaign. The feature story will also work to strengthen investor
confidence in the network by displaying that ESPN is taking steps to evolve to the modern style
of media consumption.
Throughout the campaign news releases will be distributed that will enlighten the public
of the free trial program, the media guide’s release, exclusive cable package deals available to
the public in certain areas, and monthly reports on increased activity.
The campaign will also feature a social media aspect that will continue throughout the
campaign using ESPN’s already large social media presence. This strong foothold will provide a
great opportunity to advertise the streaming service, the free trial program, and which major
events are happening on the service or network as they happen in real time. Social media will
also serve as an area that allows for the release of a full WatchESPN tutorial video that will
encourage users to join in on the free trial program being offered. We estimate about 2-3
planned social media posts a week, accompanied by real-time posts when major events
happen.
Timeline
Below is a tentative timeline of the campaign and the various activities to be performed
on a monthly basis throughout the three month campaign.
November
1. Release the letter from the President concerning layoffs.
2. Begin the free trial program for WatchESPN
3. Release NR announcing the free trial program
4. Release VNR explaining the free trial program and WatchESPN
5. Begin exclusive programming initiative

6. ESPN 5
6. Release media guide #1
7. Begin social media efforts.
December
1. Release media guide #2
2. Release NR announcing the first month’s membership increase.
3. Release edited versions of VNR as advertising material and for social media.
4. Release the feature story
5. Continued social media efforts
January
1. Release media guide #3
2. Release NR announcing increased membership throughout first two months
3. Release NR announcing the close of the free trial program at the end of the month.
4. Close the free trial program at the end of the month
5. Gather results from the campaign. (New cable subscribers, new ESPN memberships)
Outcomes
 Increase in cable subscribers.
 Increase in online streaming service users.
 Increased stock value
 Increased projected growth
 Shift from negative publicity to positive.
International Media Consulting
International Media Consulting is a firm based out of Northern Kentucky that specializes
in multimedia services and promotions. The firm is comprised of 5 members, Principal, two
senior level employees, one junior level employee, and one intern. The firm has multiple other
clients that are big names in the media world such as Fox, Viacom, HBO and Adobe.

7. ESPN 6
Firm Personnel
As mentioned before, the Firm consists of five members. Below is a breakdown of each
employee, their level within the firm, their specialty and their individual rate.
Personnel Specialty Level Rate/hr.
Tyler Media Principal $300.00
Tony Sports Senior $225.00
Tina Media Senior $225.00
Tim Online Media Junior $150.00
Tera Online Media Intern $96.00
Each member of International Media Consulting is billed out at a set hourly rate
determined by our established 25 percent profit margin. In the chart below is the formula used
to determine rates. The profit factor used for the 25 percent profit margin is 33-1/3 as you will
see in the chart below. In the formula below salary cost is added to overhead cost, which is set
at 80 percent, to get the subtotal. The 33-1/3 profit factor is applied to the subtotal, then
added to the subtotal to get the total (ex. 90 x 33 1/3 = 30, then 90 + 30 = 120 = total). The
profit margin of 25 percent is derived from 25 percent of each member’s total. The total is then
divided by the average number of billable hours per year which will give you the hourly rate.
Personnel Salary cost
Over-head of
80 percent
Sub-Total
Profit Factor
of 33 1/3
percent
Total
Annual
Billable
hours
Hourly
rate
Tyler 200,000.00$ 160,000.00$ 360,000.00$ 120,000.00$ 480,000.00$ 1,600 300.00$
Tony 150,000.00$ 120,000.00$ 270,000.00$ 90,000.00$ 360,000.00$ 1,600 225.00$
Tina 150,000.00$ 120,000.00$ 270,000.00$ 90,000.00$ 360,000.00$ 1,600 225.00$
Tim 100,000.00$ 80,000.00$ 180,000.00$ 60,000.00$ 240,000.00$ 1,600 150.00$
Tera 40,000.00$ 32,000.00$ 72,000.00$ 24,000.00$ 96,000.00$ 1,000 96.00$
Each member of the firm operates at an 85 percent productivity rate (1600 billable
hours) that is necessary for the success of the firm. The chart below shows the productivity
rates of the firm’s employees on the projects we have worked on over the past year.

8. ESPN 7
Account
team
member
Maximum
available
hours
Hourly
rate
Maximum
total billing
(100 percent
Total billing at
85 percent
productivity
Tyler 1,880 300.00$ 564,000.00$ 480,000.00$
Tony 1,880 225.00$ 423,000.00$ 360,000.00$
Tina 1,880 225.00$ 423,000.00$ 360,000.00$
Tim 1,880 150.00$ 282,000.00$ 240,000.00$
Tera 1,180 96.00$ 113,280.00$ 96,000.00$
Below are the projected 85 percent productivity rates over the next three months that
the campaign will encompass.
Account
team
member
Maximum
available
hours
Hourly
rate
Maximum total
billing (100
percent)
Total billing at
85 percent
productivity
Tyler 469 300.00$ 140,700.00$ 119,700.00$
Tony 469 225.00$ 105,525.00$ 89,775.00$
Tina 469 225.00$ 105,525.00$ 89,775.00$
Tim 469 150.00$ 70,350.00$ 59,850.00$
Tera 294 96.00$ 28,224.00$ 24,000.00$
ESPN Resource Allocation Matrix
Below is the resource allocation Matrix for the ESPN Campaign. The Matrix details which
member of the account team will do what objectives and what other tasks must be performed,
as well as the estimated income from the project. All numbers in the chart below are converted
into dollars for consistency. To determine the amount of hours spent per activity simply divide
the dollar amount by the respective hourly rate of the team member that will accomplish the
activity. This formula will not work for the time allocated column of the chart. To find this,
determine each member’s time spent on an activity then find the sum. All team members are
participating in this project except for Tina.

9. ESPN 8
Activity Tyler Tony Tim Tera
Time
Shortage
Time
Allocated
Income
Planning $ 675.00 $ 300.00 $ 384.00 $1,359.00 $1,359.00
Supervising $2,100.00 $ 300.00 $2,400.00 $2,400.00
Letter $ 600.00 $ 600.00 $ 600.00
NR $ 900.00 $ 675.00 $1,575.00 $1,575.00
VNR $ 900.00 $ 900.00 $ 900.00
Feature $1,500.00 $1,500.00 $1,500.00
Trial
program
planning
$ 450.00 $ 192.00 $ 642.00 $ 642.00
Follow-up
research
$ 450.00 $ 480.00 $ 930.00 $ 930.00
Social Media $3,000.00 $1,536.00 $4,536.00 $4,536.00
Exclusive
program
planning
$ 600.00 $ 450.00 $1,050.00 $1,050.00
Media Guide $1,125.00 $1,125.00 $1,125.00
Firm Resource Allocation Matrix
Below is an overview of the clients that work with International Media Consulting. The
chart details who in the firm works on which projects and how many hours are dedicated to
each client.
Client Tyler Tony Tina Tim Tera
Time
Shortage
Time
allocated
Three
month
Budget
Viacom $45,000.00 $40,500.00 $35,775.00 $15,000.00 $4,800.00 $141,075.00 $141,075.00
FOX $39,000.00 $13,500.00 $36,000.00 $13,500.00 $3,840.00 $105,840.00 $105,840.00
Adobe $18,000.00 $18,000.00 $ 4,500.00 $15,300.00 $8,640.00 $ 64,440.00 $ 64,440.00
HBO $12,000.00 $13,500.00 $13,500.00 $12,000.00 $4,128.00 $ 55,128.00 $ 55,128.00
ESPN $ 5,700.00 $ 4,275.00 $ 4,050.00 $2,592.00 $ 16,617.00 $ 16,617.00
ESPN will be our smallest client at the moment. We hope to build and expand our
relationship through the success of this campaign to reach a growing, profitable and mutually
beneficial relationship. International Media Consultants would like to continue with ESPN as a
client for many years to come.

10. ESPN 9
Sources
1.) About ESPN - ESPN MediaZone. (n.d.). Retrieved October 28, 2015, from
http://espnmediazone.com/us/about-espn/
2.) Duffy, T. (2015, October 20). ESPN Layoffs Begin Tomorrow: 350 Employees, Six-Figure
Earners [UPDATE]. Retrieved October 28, 2015, from
http://thebiglead.com/2015/10/20/espn-layoffs-begin-tomorrow-350-employees-six-
figure-earners/
3.) Haar, D. (2015, October 21). ESPN Layoff Of 300 Amid Subscription Decline In Cable TV
Highlights Broader Changes. Retrieved October 28, 2015, from
http://www.courant.com/business/hc-espn-layoffs-1021-20151020-story.html
4.) Davis, S. (2015, October 21). ESPN president John Skipper confirms that layoffs are
coming. Retrieved October 28, 2015, from http://www.businessinsider.com/espn-
president-john-skipper-confirms-espn-layoffs-2015-10
5.) Battaglio, S. (2015, October 21). ESPN cuts 300 jobs as subscriber fee growth slows.
Retrieved October 28, 2015, from
http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-espn-layoffs-
20151021-story.html