There's a great article in Bloomberg Businessweek on the mammoth, multi-platform success of the ESPN empire.
(Big hat-tip to Fred Jacobs, who covers the piece in his blog here where he wrote, "ESPN’s approach, decision-making, and risk-taking are what separates it from other traditional brands – and provides great lessons for radio companies and their very best stations.")
Since its inception in the late 70s, and especially over the past ten years, ESPN "has moved aggressively into new media and platforms, without regard for how they may negatively impact the old. This strategy allows ESPN to squeeze more revenue out of any event it carries by selling that same contest in multiple formats, instead of merely broadcasting it on television." ESPN president John Skipper credits the success to a philosophy of "build, build, build. There comes a time when a lot of businesses become calcified, but we never stop building."
Just how successful has their embrace of new media, especially mobile, been? "The number of users per minute, which is ESPN’s internal metric, reached 102,000 in June, an increase of 48% so far this year," and an astounding 70% of sports content consumed on mobile devices comes across an ESPN mobile app.
Skipper credits NOT cordoning off "digital" or "mobile," but making it everyone's priority. He said, "We have one revenue group, we have one ad sales group, so you don’t have factions fighting against this new digital group. … We don’t have a lot of infighting. We have everybody incentivized so that it’s about the total amount of business we do."
And, they don't wait for an ROI before they actually begin building the business. "ESPN has invested in creating content for a platform before business exists to support it. John Kosner, executive vice president for digital and print media, says, 'We’re not afraid to be ahead of the market. You win by delivering what fans want, and then that becomes a fantastic advertising proposition and a great business.'"
Read the Bloomberg Businessweek article on ESPN here.
ESPN Audio is a finalist in both the "Best Overall Online Radio Service" and "Best Overal Digital Strategy" categories for this year's RAIN Internet Radio Awards (see all the finalists here). ESPNRadio.com is a finalist in the "Best Streaming Broadcaster" category. We'll announce the winners at RAIN Summit Dallas this Tuesday. ESPN SVP/Production & Business Divisions Traug Keller revealed details of the then soon-to-launch revamped ESPN mobile app during his keynote address to RAIN Summit West this past April in Las Vegas.