Friday, June 11, 2010 at 1:45PM ESPN's soccer programming strategy should warm the hearts of all young biz school grads.
New managers should take heart in what's possible for them.
Most of the students I teach in the case rooms I work in find it mildly surprising when I say that much of business today is ineptly run. I'm not saying that there is pervasive and out-right incompetence; instead I'm just pointing out that rarely are management teams able to operate at the edge of what's optimal, smart, and efficient. They don't screw-up as much as they mostly "get-by."
In today's Wall Street Journal the headline reads "ESPN takes 'Leap of Faith' on the World Cup." And the next four sentences tell the whole story:
Walt Disney Co. and its television networks are determined to make the World Cup as big a deal in this country as it is in the rest of the world.
All 64 matches in the month-long tournament, which kicks off Friday, will be broadcast live on ESPN or ABC and simulcast online on the subscription-based ESPN 3 website, where the games are to be temporarily available for replay, as well.
ESPN Executive Vice President John Skipper acknowledges that the heavy emphasis on a sport that most of the time barely registers with American fans is "a leap of faith."
Nonetheless, he predicts: "The World Cup will be a mass event this year in the U.S."
Who's calling the viewing preferences...the audience? Or the network?
What? Mr. Skipper plans to authorize programming based on a "leap of faith"!!!? He predicts that the entire series of World Cup soccer will be a mass event this year in the U.S.? Did I read this right? Are the people at ESPN thinking straight? Does Mr. Skipper really think he can shape or fundamentally alter the basic viewing preference of his viewers? Did he forget that to best serve his shareholders he should look to his audience for direction, not bank on it working the other way around?
I say that this story should be an encouragement to all young people making their start in the world of business for the simple reason that so much of business is run, well, not all that brilliantly. My expertise is not in broadcasting like Mr. Skipper's is, but I apparently know more than he does on this score: soccer will not be a mass event this year in the U.S. And I know that because it wasn't so last year and--I don't think I'm going too far out on the limb on this one--it won't be next year either! These king of things change slowly, not over-night.
American don't prefer soccer and Colombians don't especially dig hockey.
Two points are to be made. First, let's not argue any more over whether this represents an arrogance--or ignorance--on the part of North Americans versus the rest of the world. It just doesn't. The simple point is soccer's not [yet] our sport; it may be the world's sport, but other sports are what we care about, but not soccer very much. Maybe in a generation or two--but that doesn't mean this year. [I'd also make the bet that hockey's not big in much of the civilized world either. Does that make them arrogant toward us? Of course it doesn't!!!]
Second, my guess is that ESPN's got nothing better to run for programming. If they did they'd--from an economic perspective--do just that. ESPN makes money on the number of viewers they can offer the sponsor. You don't need me to tell you, they don't make money very often on leaps of faith or hunches--they make their livelihood on getting as many people to watch their shows as possible.
Plan on managing smart and going far.
To my young friends getting starting in business--many of whom graduated just a few days ago: If you're any good at the affairs of commerce, there'll be plenty of people you can rightfully plan on replacing. And--this should be pretty obvious--just don't take too many leaps of faith, at least like the foolish one to be taken by Mr. Skipper. You likely won't be replacing him--but there'll be others just like him I'm pretty sure.
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Reader Comments (1)
Keith,
Agree with your point that they can't force tastes, and of course keep in mind that press releases tend to overstate the impact of the event in question. No they won't get super bowl numbers but will probably beat
out reruns of "Body by Gilad" or of last nights 2am Sportscenter
However, keep in mind world series of poker and X-Games pretty much became household names based on ESPN's desire to increase their programming options.
scott