Post #4: Media Economics
Today, I will be talking about Media Economics. In the media and tech sectors, there are many horizontal and vertically integrated companies that exist. I will be talking about ESPN, one of the leading sports entertainment companies in the United States. Within the sports entertainment industries, there are multiple examples of vertical integration, which is when a parent company produces and creates all of it's original media through all of their channels. ESPN has multiple channels, including ESPN2, ESPN+, ESPNU and ESPNFC, which cover different content to feed the different demographics of sports fans. ESPN2 is geared towards providing non-traditional sports content, ESPN+ is an exclusive streaming service that provides exclusive content to its subscribers. ESPNU was created to give content to those who enjoy college sports, specifically college sports. Lastly, ESPNFC is created for all things soccer all year round. This market is very concentrated, especially with the addition of new streaming services amongst NBC, ABC and ESPN, deriving different sports content to the three services. ESPN, NBC and ABC dominate the sports market and create the most watchable content, hosting multiple sports on multiple platforms. In conclusion, ESPN is in a saturated sports market that is trying to get the most attention to their platform, similar to their competitors.
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