Wednesday, February 10, 2010

ESPN Plays Up the Web

The worlds most famous sports broadcaster, ESPN, is putting a lot of emphasis on their new website, ESPN360 to make money from live online sports video. ESPN360 is a website that allows subscribers to view almost any sporting event with the click of a button, live right from their home. The website does not require any additional fee, but rather comes with the Internet service of a provider. ESPN believes that with increased popularity of their new website, they can create higher revenue with an increasing demand of live, streaming sports footage.

The article states, "A person familiar with the matter said ESPN has had preliminary conversations with technology companies about making the service available on devices such as Web-enabled TVs or gaming consoles." (Par. 3) This would allow subscribers to view any live sporting event through their TV or gaming console such as Playstation or Xbox. One reason why someone might want to subscribe to ESPN360 is because their favorite team or sport might not be televised where they are living. ESPN360 would allow them to view every game, no matter if it was televised in their state or not. With access to ESPN360, a subscriber would not have to go out to a sports restaurant or pay for an additional package to view their favorite team.

One thing standing in the way of the expansion of ESPN360 are media forms such as Comcast and Time Warner Cable. They believe that the growth of live Web video will decrease demand for cable subscriptions. ESPN has countered by saying that they would "pull back" one of their traditional cable channels, ESPN Classic. This would not be detrimental to ESPN because the number of homes receiving ESPN Classic has reduced by 6 million since September, while ESPN360 has doubled. Another point that Time Warner Cable has brought up is the interest of their customers. Time Warner Cable believes that if they are carrying ESPN360 with their service, non-sports interested subscribers should not have to pay for ESPN360. Maureen Huff, spokeswoman of Time Warner Cable said, "Our customers ought to be able to access the Internet without being forced to pay for programming that they might never watch." (Par. 13)

ESPN believes that with the promotion of their site via the Internet and cable, they will be able to receive more subscribers. It is a great idea for ESPN to be advertising their new network this way because people are willing to pay the price to view their sports team. Damon Phillips, vice president of ESPN360 said "We want to take the best of the Web and take it to a TV-like environment." (Par. 12)

Wall Street Journal. Sam Schechner, 8 Feb. 2010. Web. 10 Feb. 2010. .
Website:
http://online.wsj.com/article/SB10001424052748704182004575055320103918254.html?mod=WSJ_Tech_LEFTTopNews

1 comment:

  1. I think this is a great investment for the ESPN organization. As a sports lover, it is very frustrating when the game I've been looking forward to watching is unavailable on television and I need to go to a different location to watch it. I believe a lot of people would make great use out of this ESPN360 and it would be a success. It would provide a more convenient way to view one's favorite teams without having to pay an additional fee. Furthermore, making ESPN360 available on gaming consoles would increase usage and success. It would increase the customer base and increase the availability and access of this program.

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