Video Case

ESPN—Winning the Global Race

If your passion is Indian cricket, Argentinean soccer, or Scottish links golf, tune to ESPN International’s programming for live coverage of these and other global sporting events. A division of ESPN Inc., ESPN International has grown to include ownership—in whole or in part—of 29 television networks outside the United States, as well as a variety of brand extension businesses that allow ESPN programming to reach fans in 194 countries and territories.

ESPN International’s business entities include television, radio, print, Internet, wireless, consumer products, and event management. ESPN and its holdings maintain offices in such key locations around the world as Beijing, Buenos Aires, Delhi, Hong Kong, Japan, London, Mexico City, Miami, Mumbai, Paris, Sao Paulo, Shanghai, Singapore, Taiwan, and Toronto. The television networks of ESPN International are enjoyed on all seven continents in 11 languages (Arabic, Cantonese, English, French, Hindi, Italian, Japanese, Korean, Mandarin, Portuguese, and Spanish). Program syndication covers over 130 events with broadcast partners in 200 countries. ESPN radio broadcasts can be heard in 13 countries, and offer a combination of live events, sports news, information, and talk. ESPN and X Games branded consumer products include apparel, bikes, skateboards, backpacks, books, and DVDs.

As the worldwide leader in global sports entertainment, ESPN recognized the need to identify, even create, trends in the world of sports. The company produces its own events, most notably the phenomenally successful X Games. The world’s premier action sport competition is staged throughout the world, with competitions held annually in the United States, Asia, and Latin America. The games feature edgy “evolving sports”—snow and water sports, as well as skateboard and stunt bike events.

The company’s initial 1989 foray into international sports broadcasting was in South America. Minimal data was then available on such basic demographics as household cable penetration, markets, or advertising. Despite this, ESPN followed pioneers CNN and HBO into the international broadcast arena, convinced that sporting events would carry the same global appeal for viewers as news and movies. Its goal was to bring quality programming and journalistic integrity in American sports to a global audience.

ESPN International generates two revenue streams: from cable operators and the companies who buy ESPN advertising airtime. Initially ESPN’s advertising was designed to promote viewer tune-in for specific events, with little focus on building the ESPN brand or image. Later, company ads in its own airtime helped build ESPN International brand awareness, which the company hopes worldwide sports viewers will continue to see as synonymous with excellence in sports broadcasting.

Critical Thinking Questions

1. Using information from the case and the video, answer the following critical thinking questions:

2. Why did ESPN take the risk of expanding into the international broadcast arena without having solid data available?

3. What is the secret of ESPN’s success in bringing American and international sporting events to the global market?

4. Why did ESPN create the X Games, and how have the games contributed to the company’s global presence?

Source: Adapted from material contained in the video ESPN International; Corporate Web site (November 9, 2005).