Though I could not find the initial release of ESPN’s app, one of their secondary apps, WatchESPN, launched in 2011. Currently ESPN is working on a new app that will house the features of their multiple apps within one.
Demographics:
- In 2016, an average of 69.3 million unique users spent 4.4 billion minutes on ESPN’s mobile content
- WatchESPN/ESPN app streaming averaged 8.2 million unique devices and 1.8 billion minutes per month
- Approximately 62 million Americans watch ESPN at least once a week
- 3% of ESPN.com traffic comes from the United States
- Each person going to ESPN.com averaged 6:59 of time spent on the website
The app is utilized in the same manner by each sports team. The articles posted on the website come from ESPN’s team in an effort to keep content equal about each team. As expected, the teams that comes from big markets and the teams who historically do well receive more focus than the teams consistently in the bottom of the standings. Once inside of the app, you are able to select your favorite teams which will customize your feed with the scores you want coming first, as well as updates about scores, news, and anything relating to your favorite teams. Brands are able to advertise to on the app but most of the time I notice ads from things non-sport related (like Geico, Pearson, believe it or not, and Papa John’s).
The majority of ESPN’s revenue comes from subscription fees which are paid by cable providers. Their next highest revenue stream is their TV and mobile advertisements, which only make up half of the total money they get from subscription fees. ESPN also owns 8 cable network channels where they stream the majority of professional and collegiate sports, nationwide.
ESPN is currently facing a few issues, most importantly, the amount of people cutting the cord and getting rid of cable. Every cable household that pays for an ESPN package is worth an average of $8 to the company. If more and more people continue to drop their cable package, ESPN will be losing a large chunk of their biggest revenue stream. Not only that, but ESPN’s ad revenues have been declining as well. There has been a consistent year-over-year decline is revenue from cable subscription packages, daily users on their app, and ad revenue for a couple years. Though they have nothing close to a shortage in capital, the company appears to be facing pressing issues that will greatly affect the direction of the company.
Sources:
http://espnmediazone.com/us/espn-inc-fact-sheet/
https://www.alexa.com/siteinfo/espn.com
http://www.businessinsider.com/espn-revenue-subscriber-fees-2015-11