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ESPN: Broadband Strategy Onnie Bose Mark Hicken George Hsin Shamus Prindiville.

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Presentation on theme: "ESPN: Broadband Strategy Onnie Bose Mark Hicken George Hsin Shamus Prindiville."— Presentation transcript:

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2 ESPN: Broadband Strategy Onnie Bose Mark Hicken George Hsin Shamus Prindiville

3 ESPN: A History zcreated in 1979 as then-unheard of 24 hour all-sports network zknown to be a creative and innovative network, willing to take risks zcontinues to move into unproven markets with remarkable success yespn2 added in 1993 yESPNews added in 1996 yESPNet Sportszone (now ESPN.com) launched in late 1994

4 ESPN Internet Ventures zOver 12 million unique impressions per day at ESPN.com z22 million visits at associated sites (NASCAR, NFL, NBA, ABC Sports) zA mature player, “the worldwide leader”

5 Main Competitors CBS Sportsline The Sporting News CNN/SI Yahoo! Sports America Online

6 Looking Forward zCannot rely solely on brand equity zProvide a “value-added experience” zAnticipate broadband and online video delivery zFocus on strengths in sports analysis

7 Broadband and its implications zThe ability to transmit seamless voice, data, and video content zthe Wall Street Journal (10/98) y“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.”

8 ESPN and the Sports Media Industry zProviding live game content is expensive ynearly $2 billion for NFL television rights yhighly competitive zNews, commentary, and feature programming drives revenue ySportsCenter, NFL PrimeTime, Baseball Tonight yanalysis is ESPN’s core competency yadvertising revenue for these programs are among the industry’s highest

9 Implications for ESPN zThe cost of sports content is escalating ylarge network competition drives up costs zESPN should focus on delivering cutting edge analysis, commentary, and interactivity instead of broadcasting content yin-line with ESPN’s history and competencies ykeeps in mind the implications of broadband and the demand for compelling content

10 ESPN’s focus on analysis zPartnerships and alliances (co-opetition) with traditional sports broadcasting networks zProvide interactive media applications (Praja), fantasy leagues, and discussion forums zVideo content from partners surrounded by ESPN’s interactive applications and analysis zBecoming the “Bloomberg of sports”

11 The Goals zShort term: yleverage competency in sports analysis yinteractive service through traditional Internet connections zLong term: yreal, live interactive television when broadband delivery becomes feasible and widely-available

12 The Product zStreaming video content of game action (provided initially by ESPN or ABC Sports, and eventually by partnerships with networks) zSurrounded by ESPN analysis and interactive content

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14 Critical Issues Grid

15 Critical nodes in ESPN’s Hugin Model zAcceptance of new product by users zAbility to cross-brand content (from broadcasters) to ESPN site zRevenue model: subscription v. advertising

16 Hugin!

17 Conclusions zBroadband is inevitable--act early zCosts of going forward with the project are relatively negligible zIn almost any case, the project will be successful zNatural step in ESPN’s evolution


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