Why did espn change its revenue model in the early 1980s

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Reference no: EM133292199

Assignment:

Given ESPN's overwhelming brand power, revenue structure, and the magnitude of its broadcast contracts, its market position seemed insurmountable. But considering the pace at which the world changes, it would be shortsighted to think ESPN's success could last forever.

John Skipper, president and CEO of ESPN since 2012, sat at his desk and intently reviewed comments by Bob Iger, Disney CEO, and his direct boss, during an earnings call: "I'd like to address an issue that has been receiving a fair amount of interest and attention these days and that's the rapidly changing media landscape especially as it relates to ESPN."

With that, the wheels began to turn!

This case explores the evolution and thought process of multimedia giant ESPN in its quest to imagine (and reimagine) the famous television network.

As you read the introduction above, consider how you'd answer the following questions:

1. What role do values and culture play in the creation of competitive advantage at ESPN? What resources and capabilities does the company possess?

2. Why did ESPN change its revenue model in the early 1980s? How did that change affect ESPN's growth? The cable industry in general?

3. Of the challenges facing ESPN in 2015, which one do you think is the most significant? The biggest opportunity? Biggest threat?

Reference no: EM133292199

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