ESPN Tries New Plays To Beat Ratings Slump

Cable World, March 12, 2001 by Stuart Miller

Every athlete goes through slumps.

Nobody knows that better than ESPN, so executives there are up front about the network's ratings struggles, their causes and possible solutions.

"We've had some spotty stories in the ratings," acknowledges Artie Bulgrin VP-research and sales for ESPN development. "But we certainly don't sit on our hands."

In February, while basic cable was up 12% overall, ESPN was down 11% to 0.8 in households for primetime compared to the previous February. Even though

ESPN's 0.5 rating with adults 18-49 held steady, it came at a time when basic cable's 18-49 viewership was up 19%. ESPN's actual number of viewers declined by 18,000. Additionally, in total day, ESPN was down one-tenth of a point to 0.5.

On top of the recent woes, February marked the beginning of NASCAR's season. Once a ratings boost for ESPN, NASCAR, having fled to Fox, is now a symbol of how competitive the field has become.

"It's very difficult for them to lose a franchise like that," says John Lazarus, SVP-national broadcast operations at TN Media.

Bulgrin argues ESPN has a "mixed story" going on. For instance, while the NHL declined in households, it is up 38% with men 18-34. The company has also been shifting marquee matchups in college basketball to ESPN2 to boost the junior network.

Still, Kathy Haesele, SVP-broadcast for Advanswers says, "Don't cry for them. ESPN is still so fat and happy. They still get good ratings, and you still gotta have sports as one component if you want to reach men."

The bigger question is longterm, she says: Will ESPN be complacent and ignore the growing competition as CNN did until the problem grows so large that ad rates start to drop. ESPN "has not been very exciting" and is "going to suffer" unless it replaces NASCAR with another high-profile sport or event that will generate buzz and ratings, she says, adding, "They need a draw."

Bulgrin counters that the fans' fluctuating appetites for events or news on a sport is too unpredictable. The emphasis these days is on putting the "E" back in ESPN. One major effort has been the development of ESPN Original Entertainment, which produces series 2 Minute Drill and The Life as well as last year's mini-series documentary The Season.

ESPN hopes regular series attract a stable viewing base.

Signature specials are also getting extra attention.

"We are making a very strong effort to develop and promote our major events," Bulgrin says, pointing to the ESPYs, up this past year in men 18-34 and in teens, and the most recent Winter X Games, up 16% in men 18-49.

"That's a very reasonable strategy," says Katz Television program consultant Bill Carroll. "The other approach is to just throw money at the screen."

As audiences continue fragmenting and rights fees still escalate, these programs are a practical way to differentiate the network from Fox and the regional sports networks that are eating into ESPN's numbers, he says.

"With viewers having more options, the most clear and distinguished brand is likely to be the most successful," he says, and it's easier to brand with programs than distinctive personalities, such as a Keith Olbermann, who often move on.

Ultimately, Carroll says, it's impossible for ESPN to remain at the same level as when they were the only brand, he asks. "But can they maintain their pre-eminent position? Yes."