Monday, October 3, 2011

"ESPN fires back at critics of ‘MNF’ deal’s price tag"

From the SportsBusiness Journal

Review by Natalie Heintz in KIN 332 (Section 1)

This article focuses on the concern about the amount of money that ESPN is spending on renewing their contract with Monday Night Football.  The deal is $15.2 Billion dollars over the next eight years.  That is nearly 2 billion dollars per year.   Critics went public with the concern that consumers would be the ones paying for the deal through higher cable fees.  Sean Bratches, ESPN’s executive vice president of sales and marketing, expressed the fact that they were looking to get the money for the deal through increases in their affiliate fees.  Despite the fact that these numbers seem crazy, ESPN is benefitting from the deal.  After interviews with executives from three of the biggest distributors, they said they were expecting these numbers and have said it is not of huge concern.  ESPN is going to get much more TV, broadband, and mobile content as a result of the deal.  They are going to roll out 500 new hours of NFL related programs.  This will be beneficial because those are among the highest rated programs on television.
            
This is a great marketing move for the ESPN brand and it’s family of networks.  In 2010, seventeen NFL games airing on ESPN made the top twenty most watched shows.  This goes to show that the NFL brand is important to advertisers because of its large and loyal fan base. More specifically, ‘Monday Night Football’ has become an event. It is the only NFL game playing that day, so more viewers will be watching it.  The NFL is one of the most powerful brands in America that advertisers want to be affiliated with.  Also it is a brand that will continue to increase its popularity, which is proven through fantasy football.  All of this goes to show that this deal is a smart marketing move for ESPN and will be very profitable.  

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