ESPN, Inc.: 2006 in Review

Each of ESPN’s four measuredU.S.television networks achieved its largest audience ever, yet ESPN’s 2006 may ultimately be defined by Monday Night Football’s record-breaking, multi-platform success, changing the conversation about how fans consume sports.  With growth overseas, online and in radio; plus expansion of the company’s presence in print, in consumer products and in owned events, ESPN enjoyed a year of remarkable results.  

With ESPN, ESPN2, ESPN Classic and ESPNEWS averaging a combined 1,368,000 households (up 13% vs. 2005) and setting numerous monthly and quarterly records along the way, a record 200 million Americans – 71% of the population – watched ESPN networks in the fourth quarter.  Moreover, in the quarter 88% of cable homes tuned to one of the ESPN networks.  In addition, in 2006 the company produced the most-watched shows on both broadcast and cable television, with Super Bowl XL on ABC and ESPN’s October 23 New York Giants at Dallas Cowboys MNF telecast, respectively.  The latter attracted cable’s largest household audience in history – 11,807,000 homes – helping MNF to rank as cable’s most-watched series in history.

 ESPN’s unmatched ability to engage fans every day wherever they are is best exemplified by the 111.5 million people who consumed MNF content either on TV or online and by the new franchise Full Circle, an innovative effort to cover an event across platforms and reach fans wherever they may be.  Importantly, this unique ESPN strength has been recognized by both content rightsholders and distributors.  Long-term agreements with both constituencies secured ESPN’s leadership position into the next decade.  In new media, ESPN continued to expand, aggressively leveraging its traditional media strengths and increasing ad revenue across multimedia outlets.           

“More than ever, in 2006 ESPN fulfilled its mission to serve sports fans both at home and abroad with exciting programming, passionate journalism and continuous innovation,” said George Bodenheimer, President, ESPN, Inc. and ABC Sports, and Co-Chairman, Disney Media Networks.  “With Monday Night Football the best example, the ESPN team continues to lead the industry with a creative drive, a love of technology, diverse offerings and the single goal to be at the center of wherever sports are consumed.”

CONTENT & TECHNOLOGY

MULTIMEDIA AGREEMENTS

            The heralded move of sports TV’s most-storied franchise, Monday Night Football from ABC to ESPN, led to increased ratings throughout the day and booming ESPN.com usage as ESPN’s new approach re-energized the property.  For the season, ESPN led all networks in delivery of the key male demographic groups in Monday primetime.  In addition, ESPN secured long-term, multi-media content agreements with the Big East, Big Ten, Major League Soccer and with Arena Football which included the acquisition of a minority stake in the league; the Belmont Stakes returned to ABC while the Breeders Cup debuted on ESPN.  The ESPN networks and ABC were home for a memorable FIFA World Cup, leading to acquiring the 2008 European Championship, as well as for the inaugural World Baseball Classic with ESPN Deportes’ exclusive Spanish-language coverage.  The ESPN on ABC branding debuted, and the new Saturday Night Football was a broadcast hit.  In 2007, NASCAR “comes home,” highlighted by the entire “Chase for the NEXTEL Cup” on ABC and season-long Busch Series racing on ESPN2.  This addition will give ESPN its strongest portfolio of programming ever.

PLATFORMS

Each of the four measured networks set a record for 24-hour household audience in 2006.

ESPN – posted its most-watched first, second, third and fourth quarter ever in total day and primetime (4Q being the most-watched quarter of all time), as well as its most-watched month ever (October) in total day and primetime.  The first week of the year was the network’s most-watched in history.

ESPN2 – in April became the fastest network to reach 90 million homes, and enjoyed its most-watched quarter (fourth), and most-watched first, second and third quarter.  January was the net’s most-watched month ever, until the record was broken in June.  Eight times the network set a record for the month’s audience.

Monday Night Football generated cable’s top 17 household audiences in 2006, and holds nine of the top 10 positions all-time, including #1 (excluding breaking news). 

SportsCenter – maintained its unquestioned position as the “gathering place” for fans and the sports industry with up to 88 million Americans tuning in monthly and a 16% increase in the audience for live editions vs. 2005.

NFL Draft – ESPN’s highest-rated (4.7).  A record 36 million people tuned in over two days.

NBA Playoffs – each of the three rounds ESPN covered were the highest-rated in the network’s four years of coverage, culminating with Game Five of the Eastern Conference Finals (Miami-Detroit), the network’s highest-rated NBA game (5.5) and most-watched basketball game ever.

FIFA World Cup – ESPN’s audience was up 82% vs. 2002, topped by a 4.1 rating for the Germany-Italy semifinal, the network’s third-best ever for World Cup and best non-U.S. game.  ESPN2’s audience was up 88% vs. 2002 and the 2.4 rating for the U.S.-Czech game is ESPN2’s highest-rated soccer game ever and highest rating of 2006.  All games were produced in HD.

College Football – ESPN’s household audience was up 15% vs. 2005, with three of its four biggest audiences ever for regular-season games, topped byFloridaState –Miami (6,330,000).

Major League Baseball – ESPN games averaged 24% more homes than last year (1,109,000)

The ESPY Awards – record viewership (2,530,000 households)

Winter X Games 10 – averaged a record 747,000 households across ESPN, ESPN2 and ABC

ESPN2’s new morning lineupMike & Mike at 6 a.m. followed by Cold Pizza at 10 a.m. – increased the audience for the eight-hour block 44% compared to last year.

INTERNATIONAL

ESPN International continued to grow around the world and in Spanish in the U.S.via ESPN Deportes.

SALES & MARKETING

OWNED EVENTS

TEAM ESPN

2006

Jan.       1       ESPN scores its highest-rated week ever (1.7), thanks to three bowl games earning more than a 5.0 and two NFL games.

               2       ESPN The Magazine raises its rate base to 1.9 million.

               3       ESPN content is the first sports video content available at iTunes Music Store, as part of a larger agreement with The Walt Disney Company.

               4       ABC’s BCS Championship from the Rose Bowl is the highest-rated college football game since 1987, up 59% from last year’s college title game.

               9       ESPN Classic Sport inEurope begins a Polish-language feed.

            10        ESPN.com and NBCOlympics.com announce an editorial collaboration and co-promotion of online coverage for the upcoming Winter Olympics, the first time a non-rights holding media company has Olympic video highlights.

            17        Scouts Inc. is purchased by ESPN.  The company analyzes high school, college and pro football players, and will expand to include basketball and other sports.

            17        ESPN ranks first for the fourth consecutive year in the Beta Research survey of advertising execs in brand image, viewer demos and desirable programming.

            28-31  Winter X Games 10 averages a record 747,000 households across ABC, ESPN and ESPN2 (up 45% from 2005); with record usage on EXPN.com and ESPN360, plus first-ever distribution via Mobile ESPN and iPods.  Also, an agreement is announced to stay inAspen through 2010.

            29        ESPN2 and ESPN Classic register their most-watched month ever, and ESPN enjoys its most-watched January ever.  For Classic, it is the 16th consecutive month of year-to-year growth.

Feb.       1       ESPN2 HD is added to EchoStar’s DISH Network, giving the service a nationwide footprint.           

               5       Super Bowl XL on ABC Sports averages the second-most homes in television history (45,854,000), behind only the 1983 final episode of M*A*S*H.

               5       Mobile ESPN goes on sale nationwide in Best Buy stores.  

               8       Monday Night Football will debut on ESPN this fall with a new team – Mike Tirico, Joe Theismann and Tony Kornheiser in the booth with sideline reporters Suzy Kolber and Michele Tafoya.

               9       ESPN acquires a variety of rights from NBC, including live Friday coverage for four Ryder Cups (2008, 10, 12 and 14) and expanded video highlights for the Olympics through 2012, and for Notre Dame football, the Kentucky Derby, the Preakness and more through 2011.

            15        ESPN Deportes Radio, the 24-hour Spanish-language sports radio network, is added to SIRIUS subscribers on channel 181.

            28        ESPN is rated number one by cable operators in perceived value and generating local ad sales for the sixth year in a row in Beta Research Corp.’s survey.  ESPN Classic led in perceived value among mid-sized networks. 

March    4       ESPN Full Circle debuts – the UNC-Duke men’s basketball game is covered by all ESPN entities – and the combined ESPN/ESPN2 audience (3.78M homes) is the second biggest for college basketball in ESPN history.

            13        ESPN Classic launches inGreat Britain, ESPN’s first branded network in theU.K.  ESPN Classic is now seen in seven languages in 40 countries.

            26        ESPN and ESPN2 set records for first quarter viewership and ESPN Classic enjoys its most-watched quarter for the fifth straight quarter.

April       1       ESPN2 becomes the fastest network to reach 90 million homes – 150 months.  Also, ESPN Classic is now available in 60 million.

               3       ESPN International launches a Japanese version of SportsCenter on J Sports ESPN, the 10th local version outside theU.S., covering eight languages.

            10        ESPN.com launches PodCenter, a library of digital audio and video content from ESPN’s TV, radio and online outlets to download or play on computer.

     29-30         ESPN earns a record 4.7 rating for the NFL Draft and a new high of 36 million people watch some portion of the two-day event.

May        1       ESPN and ABC Sports win 13 Sports Emmy Awards, including ESPN.com’s Off Mikes winning the first-ever category for non-traditional platforms.

               9       ESPN The Magazine wins the National Magazine Award (NMA) for General Excellence, the industry’s most prestigious editorial honor.

            10        SportsTicker, purchased by ESPN in 1994, is sold to PA Sport, the world’s leading sports news and information provider.

            26        ESPN Radio’s Mike & Mike’s Marriage Madness culminates with the first-ever wedding at ESPN, Catherine Bennett and Jason West, aired on ESPN2 HD, ESPN360 and Mobile ESPN.  Nearly 500 couples applied for the honor.

            28        ESPN cuts live to Barry Bonds’ at bat in San Francisco vs. Colorado and fans see the 715th home run of his career.

            28        May is ESPN Classic’s most-viewed month and its 20th straight with year-to-year household growth.  ESPN and ESPNEWS posted their most-watched May.

            31        The Miami-DetroitGame Five of the NBA Eastern Conference Finals is ESPN’s highest-rated NBA telecast ever, and most-watched basketball game (5.5 rating, 4,990,000 homes).

June      8       The NBA Finals begin and ABC wins each night of the six-game series among networks and represents six of the top nine programs June 8-20.

June   19        ESPN.com debuts its integrated online multimedia player, providing a single interface for all of its existing and future online video services, giving fans easy access to the Internet’s best sports video library.

            21        ESPN and the Big Ten announce a 10-year, multimedia agreement for football, men’s and women’s basketball and more, including more than 1000 events.

            25        ESPN and ESPN2 close the most-viewed second quarter for each for total-day  and prime time.  ESPN Classic and ESPNEWS each register their most-watched quarter ever, with Classic doing so for the sixth consecutive quarter.  June was the most-watched month ever for ESPN2, ESPN Classic and ESPNEWS.

July        1       ESPNEWS now reaches 50 million homes.

               9       ABC’s 7.0 rating for the FIFA World Cup final, won byItaly overFrance, is the network’s third best for soccer since it resumed with World Cup in 1994 and three times the audience of the 2002 final.  The month-long event’s 64 matches provided great ratings for ABC, ESPN & ESPN2.

            9-20    SportsCenter’s 10-part “My Wish” series grants sports-related wishes for children with life-threatening illnesses, in collaboration with Make-A-Wish and Disney.

            16        The ESPYS, hosted by an athlete for the first time, Lance Armstrong, are seen in 2.53 million homes, the most ever.  The ESPY Celebrity Golf Classic raises a record $1.1 million for The V Foundation.

Aug.       4       ESPN and Soccer United Marketing announce an eight-year agreement (thru 2014) for the MLS on ESPN2 and ABC, plus extensive rights for ESPN International, ESPN Deportes and ESPN’s new media outlets.

            3-6      X Games 12 inLos Angeles — 18 hours on ESPN, ESPN2 and ABC — is the highest-rated ever in key male demos, features the debut of Rally Car Racing and saw heavy traffic on ESPN Motion, ESPN360, EXPN.com and Mobile ESPN.

            10        ESPN announces “ESPN on ABC” will become the brand for all sports carried on the ABC Television Network beginning Saturday, Sept. 2.

            28        ESPNU.com launches as the gateway to all college sports content on ESPN.com, both consolidating and expanding the site’s college content.

 

            29        ESPN and the BIG EAST Conference reach new agreements for extensive coverage of football, basketball and more on numerous ESPN entities and ABC

Sept.      2       ABC debuts Saturday Night Football, the first weekly broadcast primetime college football series, earns a 5.4 rating, the highest-rated show on television that night.  Notre Dame defeated Georgia Tech.  A week later, #1OhioState’s victory at #2Texas earns a 8.2, the highest college football rating since 2000.

               4       ESPN averages 6,330,000 households forFloridaState atMiami, the network’s most-watched college football game ever, based on a 6.9 rating (second all time to a 7.7 for the same teams in 1994).

            11        The debut of ESPN’s Monday Night Football scores the network’s biggest audience ever and the second biggest in cable history (9,177,000 homes) forMinnesota atWashington.  Overall, including the programming surrounding the special doubleheader, was watched by 48 million people.  That day, ESPN.com recorded 36 million page views.

            24        ESPN Classic and ESPNEWS complete their most-watched quarter ever, and ESPN and ESPN2 post their best third quarter ever.  September was the best month ever for ESPNEWS.

            25        For the third straight week, ESPN breaks its audience record, with an average of 10,850,000 homes for the emotional return of the New Orleans Saints to the Superdome in a 23-3 victory over the Atlanta Falcons.

            28        Mobile ESPN announces a shift in business plan, ceasing MVNO operations in the near future with plans to license its critically acclaimed applications to existing service providers.

            30        ESPN.com sets a record for monthly users – 20 million, nine percent more than September 2005.  In the month, the site records 10 of its busiest 17 days ever.

Oct.        7       For the second time, ESPN.com wins a coveted Online Journalism Award, in the category “Specialty Journalism” for ESPN Insider.

            11        ESPNEWS and ESPN Classic received high scores among men in perceived value, favorite channel, and importance to enjoyment of cable in Beta Research Corp.’s annual survey of digital subscribers.

            12        ESPN announces its NASCAR team when the sport returns in 2007, led by Jerry Punch in the booth with analysts Rusty Wallace and Andy Petree.

            23        ESPN records the largest household audience in the history of cable, an average of 11,807,000 homes for New York Giants at Dallas on Monday Night Football, breaking the mark set by the 1993 NAFTA Debate on CNN (11,174,000).

Nov.    18        ABC earns the highest regular-season college football rating on any network since 1993 with a 13.0 for #1OhioState vs. #2Michigan.

            21        ESPN networks are part of a long-term, comprehensive agreement between The Walt Disney Company and Comcast, the largest cable distributor, which includes Disney’s cable networks and owned stations, ESPN HD and ESPN2 HD and the launch of ESPN Deportes.

            27        ESPN International announces the 11th version of SportsCenter beyondU.S. shores, a daily show inAustralia andNew Zealand to debut in January.

Dec.       4       The V Foundation becomes endowed, allowing for all new direct cash donations and net proceeds of events contributed to The V Foundation to be used to fund cancer research and related programs.

               5       ESPN International acquires NASN (North American Sports Network), the only European network dedicated to North American sports, with 800 events, including NFL, MLB, NHL and NCAA football and basketball.

               6       ESPN and ESPN2 top all major networks in perceived value among network viewers in Beta Research Corp.’s annual survey of cable subscribers.

               6       The Tribeca/ESPN Sports Film Festival is announced, a multi-platform showcase for independent sports films, set to debut April 25 – May 5, 2007.

            11        ESPN acquires domestic, international and multimedia rights to the 2008 UEFA European Football Championship.    

            19        ESPN acquires a minority stake in Arena Football.  The five-year deal includes extensive multimedia rights involving 15 ESPN platforms, including at least 26 televised games annually.

            25        Monday Night Football concludes its first season on ESPN as cable’s all-time most-watched series (averaged 9,109,000 homes), and posted nine of the top 10 household audiences in cable history.

            30        The Alamo Bowl is seen by an average of 4,876,000 households, is ESPN’s most-watched bowl game ever (Texas 26,Iowa 24).

            31        Each of ESPN’s four measured networks (ESPN, ESPN2, ESPN Classic and ESPNEWS) close its most-watched year, averaging a combined 1.2 million households on a 24-hour basis, up 16% from 2005.  In the fourth quarter (ESPN,  ESPN2 and ESPNEWS’ most-watched quarter ever), a record 200 million Americans (71% of the population) and 88% of cable homes tuned to an ESPN network.

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