ESPN focuses on digital future in advertiser pitch
In age of cord-cutting, network is embracing change with streaming service, other efforts.
ESPN put its digital future on display at its upfront presentation for advertisers Tuesday.
The sports media company’s new direct-to-consumer streaming service, ESPN+, and its “SportsCenter” editions for social media platform Snapchat received ample stage time at the Minskoff Theatre in New York, where parent company Walt Disney’s “The Lion King” is staged nightly. The first show featured at its annual event was “Detail,” the basketball analysis series hosted by Los Angeles Lakers legend Kobe Bryant, which is available only to ESPN+ subscribers.
The emphasis on digital content was meant to send a message to Madison Avenue that ESPN is fighting its image on Wall Street as a poster child for a TV industry challenged by the erosion of cable and satellite subscriptions.
ESPN’s subscriber revenue growth has slowed because of cord-cutting by viewers who prefer online video. But executives emphasized to advertisers that they can reach young viewers who are watching less traditional TV through ESPN’s digital properties, which now include the streaming video service with a menu of live events available for $4.99 a month.
“We’re embracing change in our industry,” said Jimmy Pitaro, who became ESPN president in March after running Disney’s digital initiatives and consumer products division.
He replaced John Skipper, who departed ESPN to deal with substance addiction.
In a news conference after the presentation, Pitaro said the company is pleased with early numbers on ESPN+ subscribers, although he did not release any subscriber data. The service launched in March.
Pitaro said the company will aggressively pursue the rights for more events that will appeal to younger consumers expected to use the service.
Last week, ESPN signed a $750-million deal with the UFC, which will bring an exclusive package of mixed martial arts events to ESPN+ subscribers.
Although ESPN has to contend with the change in how consumers are choosing to get their video content, its presentation reminded advertisers that virtually all of its programming is live — a commodity that is gaining value in the new TV landscape.
As more viewers choose to watch scripted dramas and comedies on streaming devices, on-demand services or a DVR, live programs are seen as the best opportunities for advertisers to bring their ad messages to a mass audience.
Even against the tide of cord-cutting, ESPN saw growth in the advertisercoveted audience of 18- to 49year-olds in 2017, largely because of the increasing popularity of NBA basketball.
ESPN also announced it will partner with Netflix on the production of a 10-part documentary series on NBA legend Michael Jordan and his championship Chicago Bulls team of the 1990s. The series, directed by Jason Hehir and produced by Michael Tollin, will premiere in 2019.