ESPN Media Platform and Revenue

ESPN is one of the most

popular Multimedia Sports Entertainment Companies in the world. Which is 80% owned by

ABC and 20% owned by Hearst.

What makes ESPN so successful is their strengths. ESPN is part of the renowned

diversified worldwide entertainment Company, Walt Disney. With this partnership ESPN has

been able to develop a strategy that returns billions in revenue. It earned $7.5 billion in operating

income more than any other segment. Weaknesses stop an organization from performing at its

optimum level.

For ESPN it is operating in one segment of business with a large number of channels and

its Revenue depends on the broadcasting and advertising rights of the entities related to the

sports Industry. However, the number of pay-tv subscribers have declined by nearly 10 million

since 2016. And is expected to continue to go down. Regardless ESPN opportunities have

allowed them to venture out into online networks like streaming services called ESPN plus.

The service costs $4.99 per month and had 7.6 million subscribers as of February 2020,

This equates to roughly $460 million in annual revenue. With the rise of online platforms, it is

Becoming tough for companies like ESPN to sustain in the marketplace. ESPN has

generated at least $11.4 billion of revenue last year ($8.6 billion affiliate fees + $2.3 billion

advertising + $0.5 billion streaming). These accounts are well over 40% of Disney's Media

Networks segment, making ESPN one of Disney's highest-grossing businesses today.