ESPN’s Digital Transformation: How the Network Thrives in the Digital Age
The media and journalism industries have undergone monumental changes in the past couple of decades. As a member of the industry myself, I hate to say it, but print media is dying out as the whims of consumers shift in favor of its online-only counterparts.
The news media outlets that have managed to stay afloat have shown an incredible ability to adapt, diving headfirst into this brave new world of journalism as they switch to digital content models on the fly. One such example is ESPN, which has built a reputation as the worldwide leader in sports by finding a way to excel in a number of digital mediums. Here’s a look at what makes ESPN so successful, and how they continue to adapt in order to overcome new challenges that arise.
ESPN’s Business Model: Diversifying Their Assets
Part of what makes ESPN’s business model tick is their focus on trying their hand at every facet of the sports media industry. Where other news outlets — even internationally renowned brands like the New York Times or the Washington Post — focus on providing intimate coverage of a handful of local teams, ESPN does the exact opposite, diversifying their assets by covering as many bases as they possibly can at one time.
Pulling in clicks is the name of the game in modern sports media, as networks who have the ability to churn out the content that readers want before anybody else can are essentially born on third
base, pulling in massive amounts of ad revenue with relatively simple stories like breaking news. Content aggregators like Adam Schefter, who covers the NFL for ESPN, make sure that they have the scoop before anybody else does on the way to making millions of dollars.
Whether they’re cornering the market of network television with game broadcasts and daytime talk shows, fulfilling a more traditional journalistic role with beat reporters for a specific team or even getting into the world of fantasy sports with things like survivor pools, ESPN has something for everybody, ensuring that they’ll remain relevant to a wide variety of customers.
From Sports Journalism to Sports Betting
With the aforementioned topic of fantasy sports in mind, let’s move on to the most recent addition to ESPN’s strategy for dominating the world of sports.
Major news broke this August when the sports media consortium announced a ten-year sponsorship deal with PENN Entertainment, formerly known as Penn National Gaming, the media company that previously founded a sportsbook attached to the Barstool Sports brand.
According to Barstool Sports founder Dave Portnoy, that deal ended up falling through because of his brand’s freewheeling and often controversial statements and business practices, so they decided to go their separate ways.
ESPN, on the other hand, gives the Penn brand an even sweeter sponsor: rather than catering solely to frat boy culture, ESPN is an internationally recognized brand. As I said earlier, they’re almost omnipresent in the world of sports.
The ESPN Bet platform will receive coverage just about everywhere, whether it’s during Monday Night Football broadcasts, the college football national championship game or even when someone is searching up the score of a given game.
If you think that sports betting advertisements are pervasive now, just wait until ESPN gets fully involved in the industry this Thanksgiving with ESPN Bet promo codes. It’s a merger that’s sure to shake up the world of sports.
Still Not An Easy Bet…
It’s been a rough few years for the sports media industry, with factors like the COVID-19 pandemic stifling the economy and pausing entire league seasons, leaving companies like ESPN without any content to create.
While ESPN has done an excellent job of moving forward since the pandemic — their developing sponsorship with Penn is just one example of that — they’ve still dealt with more than their fair share of hiccups.
A few weeks before they announced the deal with Penn, ESPN went through a round of layoffs, forced to let go a number of their on air talents in order to make ends meet. It’s a stark reminder of just how volatile the industry is that even the most foremost brands have to make difficult choices like that, but it also shows what makes the network succeed: they don’t have any qualms about doing what needs to be done.
The deal with Penn amounts to $1.5 billion paid out to ESPN over the next ten years, and they’ll also receive roughly one-seventh of an ownership stake in Penn: if the ESPN endorsement helps Penn take off, it’s ESPN who will reap the rewards as their shares increase in value.