Wednesday, January 29, 2014

ESPN's Internet rollout tests television cash cow

On a recent Saturday, technicians were busy streaming several dozen games, some at the same time as they were on television and others that weren't televised at all. Damon Phillips, in charge of the service, used a tablet computer to monitor how many people were watching online.
"I'm obsessed with this," he said, pointing to the usage tally, which he starts checking at 5:30 a.m. while on his exercise bike. "I look at it all day long."
The app, called WatchESPN, is part of an aggressive push by ESPN into online services as pay television matures. ESPN pioneered sports TV on that medium and for three decades rode a steady rise in U.S. cable and satellite TV subscriptions. These now have leveled off and appear to be contracting. ESPN is at the forefront of the TV industry's efforts to expand into Internet distribution.
The company, which generates about 40% of majority owner Walt Disney Co.'s operating profits, sees the app as a way to cash in on growing demand for online video.

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