ESPN, Inc.: 2013 in Review

In a time of unprecedented competition, ESPN further secured its leadership position in the sports media industry in 2013 with long-term programming and distribution agreements, creative new offerings across media and continued growth in its Latin American business.  Always looking ahead, the company continues to invest in the future with a growing commitment to mobile offerings and a second digital production facility at its Connecticut headquarters – a 195,000-square-foot facility featuring numerous technical firsts – set to debut in May 2014.

The most expansive programming initiative is set to launch in August 2014 – the SEC Network.  In a 20-year agreement with the conference reached this year, ESPN will create and operate TV and digital platforms, with existing content rights extended to 2034.  In addition, rights acquisitions extending into the next decade were signed with the re-named American Athletic Conference, the Mountain West Conference, the WNBA, Univision Deportes for English-language rights to Mexican National Soccer team games, and the USTA, bringing exclusivity for tennis’ US Open starting in 2015.

Other content developments spotlight the company’s emphasis on presenting compelling, unique points of view, a la Grantland:  bringing renowned statistician and author Nate Silver and his popular FiveThirtyEight.com to the ESPN family, the return of commentators Keith Olbermann and Jason Whitlock, and the critically acclaimed documentary series Nine for IX from ESPN Films and espnW which focused on women and women’s issues in sports upon the 40th anniversary of Title IX.

On the distribution side, agreements between The Walt Disney Company and AT&T U-verse and the National Rural Telecommunications Cooperative (NRTC) include ESPN content delivered via TV, internet, tablets and handheld devices; the full suite of authenticated WATCH products; and ESPN3.

In other highlights:

“Even as more competitors recognized the power of the ESPN multiplatform approach this year, we continued to grow by focusing on our culture of innovation, tapping into the unmatched passion of sports fans,” said John Skipper, ESPN President.  “Going forward, our intention is to remain the leader by continuing to act like an insurgent, not an incumbent.”

CONTENT

INTERNATIONAL 

ESPN International includes ownership — in whole or in part — of 24 television networks outside of the United States, as well as a variety of additional businesses that allow ESPN to reach sports fans in 58 countries and territories across all seven continents.  ESPN International business entities include television, radio, print, internet, broadband, wireless, consumer products, and event management.  The company and its holdings maintain offices or production facilities in key locations around the world including Bangalore, Buenos Aires, Hong Kong, London, Melbourne, Mexico City, Miami, Mumbai, New York, Rio de Janeiro, São Paulo, Singapore and Sydney.

It was another year of growth for ESPN in Spanish-speaking Latin America.  In March, ground was broken on a new state-of-the-art studio facility in Mexico City that is scheduled to be online in time for the FIFA World Cup 2014, and ESPN’s first office opened Colombia in November.  Online, ESPN.com ranked no. 1 in Mexico and no. 2 in Argentina in video starts (comScore 11/2014).  National awards for best sports and television programming were received in Argentina for Hablemos de Futbol, SportsCenter and Pura Quimica.  For the first time, ESPN International and ESPN Corporate Outreach teamed, building a playground in alliance with KaBOOM! near Mexico City.  International and Outreach also announced a grant to Special Olympics’ Unified Sports program, which will activate efforts not only in Argentina and Mexico, but also Brazil, India and the United States.

ESPN Brazil’s distribution grew significantly with the addition of the ESPN HD network to the NET lineup and the addition of WatchESPN to the provider’s service offering (NET is part of Latin America’s largest telecommunications and pay television organizations).  Online, Cabeça no Jogo debuted during Confederations Cup, a companion program with commentators commentating about the games.  An alliance with Rádio Capital (1040 AM) was announced, to launch ESPN Radio in Greater São Paulo in July 2014.  In October, ESPN aligned with Eletromidia, to provide sports content on digital media panels on public transportation and in shopping malls throughout Brazil, reaching more than six million people daily.  In addition, the October launch of ESPN Sync saw the entry of the country’s first second-screen sports app, uniting programming, social networking, full interactivity and gaming in one location.

SALES & MARKETING

TECHNOLOGY

At ESPN, technology has always been the key to enhancing the fan’s experience with sports.  More and more, that means not only developing innovative enhancements to the look and sound of traditional telecasts, but focusing on the mobile experience.  The group’s highlights in 2013:

X GAMES / OWNED EVENTS

TEAM ESPN

2013 in Review

Jan.         7       BCS National Championship (Alabama 42-14 over Notre Dame) tops last year’s game to be cable’s second-biggest audience (avg.: 26.4M viewers) and ESPN’s second-highest rating (17.5).

15         ESPN and AT&T U-verse announce a comprehensive agreement to deliver Disney’s sports, news and entertainment content across TV, internet, tablets and handheld devices, including several new services, including the full suite of authenticated WATCH products and ESPN3.

28       ESPN is named the best brand for Twitter engagement in 2012 by Track Social (avg. daily retweets: 3,564).

30       ESPN, ESPN.com and ESPN The Magazine each is rated best for brand strength in cable, web sites and print, respectively, in an Advertiser Perspectives survey.

30       ESPN is selected the top National TV Sales Organization in the annual Myers Survey of ad execs and ESPN leads all networks in “Plan to Boost Spending in 2013,” “Desirable Programming” and “Creative/Innovative Multi-platform Opportunities” in a Beta Survey.

Feb.       25       ESPN’s UK and Ireland TV channels business – primarily the ESPN and ESPN America channels and their live sports rights portfolio – will be purchased by BT Group (expected to close July 31).

27       ESPN and ESPN2 are ranked 1-2 in perceived value by cable operators in the Beta Research Survey, with ESPN taking the top spot for the 13th straight year and named the most important network in selling broadband services for the ninth consecutive year.

March     19       ESPN and the Big East Conference (soon renamed the American Athletic Conference)  announce a multimedia, worldwide rights agreement for football, basketball and more through 2019-20, continuing a relationship of more than three decades.

March     20       ESPN and the Mountain West Conference announce an agreement for select football and basketball games starting this fall through the 2019-20 season.

28       ESPN and the WNBA announce a six-year agreement extending their relationship that includes 30 televised games annually.

May         2       ESPN and the Southeastern Conference announce a 20-year agreement to create and operate a TV and digital platforms to launch in August 2014 with 1,000 events annually. The existing media rights agreement is extended through 2034.

16       ESPN and the USTA announce an 11-year agreement giving ESPN exclusivity to tennis’ US Open beginning in 2015.

July        16       The 13th annual ESPY Celebrity Golf Classic, a Team ESPN event in Industry Hills, Calif., combined with ESPN Radio’s “Don’t Give Up ESPYs V Foundation Auction,” raised more than $1.9 million for The V Foundation for Cancer Research.

17       ESPN choses Austin, Texas, as the North American host city for the X Games, for four years beginning May 2014 at the 1,500-acre Circuit of The Americas sports/entertainment complex.

18       ESPN and the National Rural Telecommunications Cooperative (NRTC) announce an agreement to deliver Disney’s sports, news and entertainment content across TVs, computers, smartphones, tablets, gaming consoles and internet-enabled TVs in 48 states.  The deal includes authenticated WATCH products, Longhorn Network and the upcoming SEC Network.

22       Renowned statistician and best-selling author Nate Silver joins ESPN, bringing his award-winning FiveThirtyEight.com.  Silver will return to his sports roots while expanding his approach to include culture, economics, technology and politics.

Sept.       7       ESPN registers its most-viewed college football regular-season Saturday in history, an average of 5.5 million fans for nearly 15 hours.

9       ESPN’s highest-rated Monday Night Football opener, a 10.1 for Philadelphia at Washington.

30       ESPN Digital Media sets sports record with 72,700,000 unique users for September.  Also, for the first time, more usage came from mobile devices than online computers.

Nov.       21       SportsCenter app debuts (replacing ScoreCenter, the most popular free sports app with 43 million downloads), with a comprehensive, personalized mix of scores, news, video and more.

Dec.       18       ESPN extends its agreement with TSN and RDS of Canada for exclusive access to thousands of hours annually of live sports events and news programming.

31       The Chick-Fil-A Bowl in Atlanta – with Johnny Manziel leading a comeback as Texas A&M downs Duke 52-48 – is ESPN’s most-watched non-BCS bowl game ever, 8,689,000 viewers.

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