Benjamin+Verovsky

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Strategy report
To: Proximity Video Team From: Ben Verovsky Date: September 28, 2009 Subject: ESPN 360 Strategy analysis Here is my ESPN 360 strategy analysis. With a niche on the emerging Internet TV market, ESPN 360 gives Gen Y access to live sports video streams. Our clients need to know if Gen Y will watch specialty sports on a small desktop or mobile screens.

__Profile__

Disney, is the largest media and entertainment conglomerate in the world. Founded on October 16, 1923, by brothers Walt and Roy Disney as an animation studio, it has become one of the biggest studios, and owner and licensor of eleven theme parks and several television networks, including ABC and ESPN (Wikipedia 2009). Luanched by ESPN, ESPN 360 was created in 2005 by George Bodenheimer, Co-Chairman of Disney Media Networks and President of ESPN Inc., and ABC Sports as a web based site for live sports programming in the United States, Mexico, Brazil, Chile and Europe. ESPN 360 gives all its users free coverage to live and recorded sport programs (Wikipedia 2009). In the US, ESPN 360 can only be accessed through an Internet Service Provider (ISP) that has paid ESPN for the service. The ISP's customer fee, gives access to ESPN 360 services regardless. Occasionally, ESPN360.com is "all access" and permits all individuals to access (Absolute Astronomy 2009). ESPN 360’s revenue comes from three sources: ESPN 360 delivers more than 3,000 live, global sports events and reaches more than 24 million homes, tripling its distribution from 2 years ago. Service grew by 297% from a year ago. User’s logged more than 8 million viewing hours (ESPN News Release 2009).
 * (ISP) Internet Service Providers who pay for access to ESPN 360
 * Ads and Commercials before, during, and after live streaming video
 * Customer Registration Fee for those who have an ISP that are not in agreement with ESPN 360

__Competitive Landscape__

ESPN 360 represents a new shift from cable television to the web. The primary force driving competition is the power of the consumer. ESPN is making contracts with ISP suppliers to deliver variety of sport videos on the Internet. ESPN and ESPN 360 needs to appeal to consumers by offering the most sport coverage on the Internet. ESPN is trying to move all their cable content to the web. ESPN 360 can push the limits on advertising fees because no one else can provide there depth and variety of sports coverage. However, will this be successful transition from cable television to the web? ESPN 360 has no threat of competition. They have found a niche market for web delivery of live streaming video. ESPN 360 tops the competition over CBS, NBC, and FOX in sport coverage. ESPN 360 offers coverage of numerous sports that other networks fail to recognize, delivering full video coverage on the web.

__ESPN 360’s Strategy__

ESPN 360’s strategy is to acquire all ISP and transition from cable television to the web. “ Verizon, for one, is more than happy to pay."It’s a tremendous value-add — one more thing to help attract customers to our broadband service" (Buskirk 2009). “SNL Kagan does not track ESPN360.com, but based on a reported TV-type affiliate… that product could bring in revenue of $25 million. ESPN does not discuss financials” (Goetzl 2009). ESPN 360 has acquired these sports programs: (ESPN 360 does not offer NFL coverage) __Gen Y Implications__
 * Basketball: NBA, WNBA, Euroleague, FIBA, NCAA (Men’s and Women’s)
 * Football: NCAA College Football, AFL
 * Global Soccer: FIFA World Cup events and global qualifiers, Confederations Cup, Football League (UK), Carling Cup (UK), La Liga (Spain), Italian Serie A, Portuguese Liga Sagres, MLS, US National team, international “friendlies” and more
 * Global Baseball: MLB, World Baseball Classic, College World Series, Little League World Series
 * Tennis: multi-court coverage of all four “grand slam” events and select other tennis events
 * Golf: extensive coverage of the US Open, The Masters, The Open Championship
 * Lacrosse: Major League Lacrosse, NCAA College Lacrosse
 * Misc. Sports: X Games and Winter X Games, NCAA Hockey and Softball, Open-wheel Racing, Professional Racquetball, International Polo and more

Will Gen Y will find all its online sport needs through ESPN 360? ESPN 360 is free to all its users that pay an ISP in accordance with ESPN 360. ESPN 360 will continue to attract more Gen Y viewers with normal and miscellaneous sport programs. In 2008, ESPN 360 was made available at no cost to approximately 18 million Gen Y, U.S. college students and U.S.-based military personnel via computers connected to on-campus educational networks and on-base military networks (those with “.edu” and “.mil” domains). We need to wait to see ESPN 360 programs keep Gen Y watching online sports.

References

Absolute Astronomy. (2009, September 16). ESPN 360. Retrieved September 16 from [|__http://www.absoluteastronomy.com/topics/ESPN360#encyclopedia__] Buskirk, Eliot. ESPN to ISP’s: Pay for Your Customers to Play Video. (2009, Febuary 5). ESPN 360. Retrieved September 16 from [|__http://www.wired.com/epicenter/2009/02/espn-stands-fir/__] ESPN News Release. Newly Re-Designed ESPN.com Launches. (2009, January 5). ESPN 360. Retrieved September 17 from [|__http://www.espnmediazone.com/press_releases/2009_01_jan/20090105_NewlyRe-DesignedESPN.comLaunches.htm__] Goetzl, David. Media Daily News. Enterprise: ESPN Classic Bumped Down, Focus on Younger Demos. (2009, September 8). ESPN 360. Retrieved September 17 from [|__http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113116__] Wikipedia. (2009, September 17). ESPN 360. Retrieved September 18 from [|__http://en.wikipedia.org/wiki/ESPN_360__] Wikipedia. (2009, October 1). Disney. Retrieved October 1 from []

Blog proposal
To: Proximity Video Team From: Ben Verovsky Subject: Blog Post Proposal Date: October 26

I recommend that we do our Proximity blog post on free streaming videos across the web. This post will attract new clients and inform them of the content they can access on the internet. Rationale ** Streaming videos on the web have become very popular amongst internet users. Depending on which Internet Service Provider an internet user has, will affect what content can be viewed over the web. Similar plans are in the works at other pay-TV operators, including Time Warner Cable Inc., Verizon Communications Inc. and DirecTV Group Inc, but Comcast has set the trend. Depending on both you Cable provider as well as your Internet Service Provider, will affect users interaction with videos delivered on the web. Sources ** Our Blog can be based off of __Comcast to debut cable shows online by year's end__ written by Deborah Yao.
 * []**

Report proposal
To: Proximity Video Team From: Ben Verovsky Date: 11/7/09 Subject: Proposal for report on ESPN 360

ESPN 360 has recently been emerging in the Internet video market. ESPN 360 gives Gen Y access to live sports video streams. ESPN 360 needs to wait and see if Gen Y will watch specialty sports on small desktop or mobile screens. I propose to write a report on how ESPN 360 is positioning itself to be the number one video sport provider on the internet.

ESPN 360 is constantly growing with its sport coverage as well as its transition from television broadcast to live internet streaming videos.
 * Need **

· With the lack of space and time to broadcast all the sports coverage, ESPN 360 offers live streaming video feeds that you can’t find anywhere else.

· Nearly all ISPs, Internet Service Providers, have given into the sports craving. Furthermore, ESPN 360 was made available to U.S. college students and U.S.-based military personnel via computers connected to on-campus educational networks and on-base military networks (those with “.edu” and “.mil” domains).

· Other online sports providers do not come close to their wide spectrum of sport coverage

· ESPN 360 delivers their videos, live or previously recorded, free to Gen Y. They profit from commercial advertisers.

No other online video sport provider can offer the content that ESPN 360 does. The wide spectrum of sports coverage that ESPN 360 provides will only continue to grow. ESPN 360 will also continue to show its dominating presence in t the market of online sports video content over CBS, NBC, and FOX. Clients of Proximity who wish to target Gen Y consumers need this report to realize the potential of ESPN 360. ESPN 360 is in a niche market where client of Proximity can expand their outreach of commercial advertising to Gen Y, through free online sport video streams.

The proposed report, “ESPN 360 is the online World Wide Leader in Sports” which will cover the following topics:
 * Topics **

· ESPN 360 dominating sports coverage provided online.

· The free accessibility to video content to certain ISP as well as US college students and military personnel.

· The sport coverage transitions from television broadcast to, live or previously recorded, streaming online video.

· Commercial Advertising potentials with ESPN 360.

Buskirk, Eliot. ESPN to ISP’s: Pay for Your Customers to Play Video. (2009, Febuary 5). ESPN 360. Retrieved September 16 from []
 * Sources **

Buskirk reveals ESPN 360’s strategy in which the license and acquire deals with ISPs rather than the users themselves. In other words, ISPs need to pay for their users’ to access ESPN 360. ESPN 360 dodges the one to one relationship with the consumer which has been successful. However, in the near future, consumers might chose an ISP based on the content they can access on the internet. ESPN 360 is looking to license content to every Cable Company, ISP, as well as Cell Phone Provider. ESPN News Release. Newly Re-Designed ESPN.com Launches. (2009, January 5). ESPN 360. Retrieved September 17 from []

The New Release discusses the simple navigation and richness of the newly designed web site promoting the ESPN evolution media platform. The number of users of for all the content ESPN offers is exponentially growing for ESPN.com, ESPN Digital Audio Radio, and most prominently ESPN 360. ESPN 360 has over 40 programming deals offering 18 million Gen Y, U.S. college students and U.S.-based military personnel via computers connected to on-campus educational networks and on-base military networks (those with “.edu” and “.mil” domains), access to video content.

Goetzl, David. ESPN 360 May Score With Ads. (2009, March 9). ESPN 360. Retrieved November 8 from []

Goetzl describes the newly developed dynamic commercial ad insertion technology designed by the Disney Interactive Media group. ISPs pay ESPN to offer ESPN 360 free to their subscribers. The new technology could improve the commercial ad side of the business. Even with the new technology ESPN 360 still has limited the amount of commercial ads showed in their videos. The technology is currently used in live NCAA tournament games. ESPN’s technology uses an automated system that signals a commercial break and cues the planned spot. Commercial advertisements can appear on screen for the length of the commercial. ESPN 360 offers 3,000 live events a year, many not carried on ESPN’s televised networks.

Kramer, Staci. ESPN Changes Broadband Game Plan; Will Re-launch ESPN 360 with Emphasis on Live Events. (2007, August 8). ESPN 360. Retrieved November 11 from[]

Kramer addresses the confusion of whether or not viewers access to ESPN 360. She clarifies the policies agreement between ESPN 360 and ISP. In addition, Kramer discusses the key questions that ESPN 360 faces. Of the 16 million homes that have access will viewing access from them increase? Also, of the homes and people without access, will they protest their ISP to acquire ESPN 360 or will they switch to an ISP that has ESPN 360 access? We have to wait and see to draw conclusions.

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus
Mr. King, CEO Ford Automotives Inc. 123 Jolly Drive Detroit, Michigan

Dear Mr. King:

I enjoyed talking with you yesterday at Proximity's Next Generation Media Seminar regarding Ford Automotives’ need to promote its products to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing a strategy to advertise your products through video on demand services.

As you mentioned yesterday, Ford feels it needs to reach out to Gen Y in order to gain ground over its competitors in the car market. Ford feels it must establish brand identity with Gen Y now in order to sell cars.I believe Proximity can work with you to formulate a strategy that uses popular video on demand services, to help sway Gen Y in purchasing Ford automotives.

We can provide focus groups that can target Gen Y into buying Ford. Our staff and consultants can advise you and help position new products, new advertisements, and help produce multi-platform commercials that appeal to Gen Y. In addition, we have trained student marketers who can promote Ford Automobiles on video on demand services such as Netflix. Our research shows that broadcasting condensed advertisements through video on demand appeals to Gen Y is more effective than conventional internet advertising.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Ford’s Gen Y marketing strategy. After that session, you can meet with members of our group to discuss how Proximity can help you meet your overall goals.

Sincerely, Ben Verovsky Associate Media Analyst

enclosure


 * About Proximity**

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.

//connecting with Gen Y using on-demand media // ||^  || Ben Verovsky Netflix: Streaming video content coming to PS3, XBOX 360 and other Game consoles || As Gen Y tries to figure out the On Demand Video market, DVD rentals from the movies stores are becoming less and less used. Netflix has taken step to stream videos through your home game console.  Gen Y will no longer drive to Blockbuster or wait for a movie rental in the mail. Gen Y needs video content by the touch of a simple of a button on their game console.   ||
 * **//PROXIMITY reports //** || ||
 * 
 * **Netflix: Gaming Console Frenzy **
 * **//__The problem __//**

// Proximity // focus group results show that Gen Y viewers still value the Video content such as movie rental on DVD and Blue Ray. However, Netflix has made viewing on demand video easier, faster, and more accessible to more of Gen Y.
 * **//__Proximity’s on-demand media solution __//**

This report details how television Netflix is teaming up with various gaming consoles, as well as LG, Microsoft, Samsung, and TiVo, making their content easier for Gen Y to access. Netflix has started to grow exponentially in homes for Gen Y viewing purposes with trial bases. Netflix will put rental stores out with their on demand streaming video content. ||
 * Available now at www.proximity.edu **
 * Available now at www.proximity.edu **