ESPN, the undisputed leader in sports programming in North America, is making substantial inroads around the world. As ESPN approaches its 25th anniversary in September 2004, its tradition of innovation continues to thrive, as evidenced by the creation of outstanding new content, the development of new technology applications, and the establishment of new businesses, setting the stage for steady growth.

The result is great value for viewers and for the cable and satellite operators who distribute the many services of ESPN. Among ESPN’s ambitious initiatives: ESPN HD, a high-definition television simulcast service; its first dramatic series, Playmakers; ESPN Pay-Per-View; ESPN Motion; ESPN Deportes Radio; and, in January 2004 ESPN Deportes, a 24-hour Spanish-language sports network.

Domestic Television and Radio Networks

ESPN, the first and largest sports television network in the United States, reaches more than 88 million homes and leads the cable industry in both national advertising and affiliate revenue. It is the number one TV brand among men, as well as the number one driver of local advertising revenue and new technologies for cable operators.

By year-end 2003, ESPN’s year-over-year ratings had increased for eight consecutive quarters. ESPN’s calendar 2003 ratings were up 13 percent in total day and eight percent in primetime (as of mid-November) with record viewership in October for ESPN and ESPN2.

These increases resulted primarily from the rights acquisition for National Basketball Association (NBA) games, Wimbledon, the FIFA Women’s World Cup Soccer, and Major League Baseball (MLB) Division Series; a 10 percent ratings growth in live SportsCenter
editions; and popular ESPN Original Entertainment shows, such as Pardon the Interruption, Around the Horn and Playmakers.

The NBA telecasts increased time slot ratings 54 percent in regular season and 277 percent in post-season. ESPN became the first television network to carry all four major professional leagues with the NBA, MLB, the National Football League (NFL) and the National Hockey League (NHL). Men’s college basketball, the Women’s Final Four, college football and the men’s and women’s professional golf tours all experienced ratings increases.

ESPN2, the second-largest national sports network, reaches 86.5 million homes and had a nine percent increase in ratings in 2003. ESPN2 carries MLB games including the Division Series, NBA, NHL, college basketball and football, and other offerings. The company’s first foray into the morning talk show category, Cold Pizza, premiered in October, celebrating ESPN2’s 10th anniversary. The weekday program uniquely mixes sports with pop culture, lifestyle and consumer advice.

ABC Sports, ESPN and ESPN2 delivered more than 50 percent of the total gross ratings points for nationally televised sports programming. Ad executives selected ESPN as number one in brand image among the broadcast and cable networks and number one among cable networks for appealing audience demographics and a desirable environment for advertising. Also, ESPN and ESPN2 were selected number one and two in perceived value by cable operators.

ESPN Classic and ESPNEWS grew in distribution. ESPN Classic, in 49 million homes, features the Peabody Award-winning SportsCentury series and Reel Classics, the Sunday night sports movie now hosted by actor Burt Reynolds. ESPNEWS, the only all-sports news network, is in nearly 40 million homes as a stand-alone network and nearly 10 million as a wraparound service for some regional sports networks.

ESPN Radio Network, the nation’s largest sports radio network, distributes programming in conjunction with ABC Radio to 700 affiliates. Twenty stations were added in 2003 to the full-time carriage list for a total of 238. ESPN Radio features MLB and NBA games, including playoffs, popular talk shows and sports news. In July, ESPN Radio Network launched The Outdoors Show in 244 markets and ESPN Deportes Radio featuring MLB games.

ESPN Regional Television, the largest syndicator of college sports programming in the United States, produces more than 740 games for local broadcast and cable outlets under the brand name ESPN Plus. In 2003, the Fort Worth Bowl became the third bowl game for which ESPN Regional Television has the rights, joining the Hawaii and Las Vegas bowls.