ESPN.com could do to the newspaper’s online sports section what Monster.com did to newspaper classifieds. Eek!
How will local sports media compete with ESPN?
If you are a sports team, or a newspaper, TV or radio station with sports content online in the City of Chicago, you ought be very concerned about the future of your digital revenue.
I just visited ESPN.com/chicago. The page loads, and video is served showing me highlights of Mark Buehrle’s no-hitter along with behind the scenes video of the pitcher’s phone call with Obama…and even a snippet of Obama’s press conference where he alludes to the no-hitter. In one minute, everything I’ve always hated about ESPN TV (having to sit through a bunch of crap until they start talking about my teams) is eliminated. I could get used to that.
I predict local sports media and sports teams will have a tough time matching ESPN’s level of quality on the content front, which means they’ll probably struggle to grow their traffic figures…which will ultimately threaten revenue potential.
Add to this the fact that ESPN will likely hit the streets harder and faster to sell its digital channel. And it will be bundling its Website with TV, print, radio and (perhaps events at ESPNzone). As ESPN’s peddlers pitch market buyers, they will be selling CPM advertising rather than sponsorships. In so doing, they will effectively set the market for local online ad prices. CPM advertising is typically sold for a lot less than impressions inside sponsorships.
Unless teams get out there quickly to talk about “sponsorships” rather than “media,” teams are likely to a harder time selling digital at the same premium they’ve enjoyed in other media.
This is what NFL Network should be doing on the local level. However, it competes too much with what teams want to do with their own websites and will probably never happen. That’s not a bad thing, just means the NFL and NFL Teams won’t get that “premium they’ve enjoyed in other media.” We’ll have to see how long the NFL can stand it not getting that premium.
Joel…do you think ESPN/local will cause NFL and other leagues to get even stricter with use of video highlights?
well i think they will. they can go to any extent.
Video highlights will be the stopping point, with all the rights and players contracts. they need to find some way to re funnel the funds.
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Hey… Video highlights will be the stopping point with all the rights and players contracts. They need to find some way to re-funnel the funds. They can go to any extent. Have a nice time…
players really needs funding. i think thats how things work.
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ESPN Local has been doing a killer job bringing in the highlights to the fans. I agree with the author that sitting through their traditional program is a waste of time. Team Websites beware
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I think ESPN is paying some amount to air those videos because it is in the law. No one can air a material without consulting the owner of it.