The Walt Disney Company 2004 Annual Report
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ESPN
DOMESTIC OPERATIONS

ESPN — the network that started it all and is fast approaching the 90 million homes milestone — enjoyed an impressive run of 10 straight quarters of year-over-year ratings growth through June 2004. In the fiscal year, network ratings grew 7% in total day and 11% in primetime, and ESPN remained the most popular network in total day viewing in the coveted male 18-34 demographic group.

SportsCenter, Major League Baseball, the National Basketball Association, men's college basketball, the Women's Final Four, the National Hockey League playoffs and College World Series all experienced increases in viewership during the year. In addition, the National Football League Sunday night games remained the highest-rated series in ad-supported cable for the 18th consecutive season.

ESPN Original Entertainment (EOE) also contributed to the network's impressive ratings upswing with new series such as Dream Job, a live reality show where contestants vie for the coveted SportsCenter anchor chair, as well as the newest additions to the network's ever-growing original movie lineup with the Pete Rose movie Hustle, and 3, about legendary NASCAR driver Dale Earnhardt. Coming soon are two more original movies, Four Minutes, about Roger Bannister shattering the four-minute-mile record, and When Pride Still Mattered, the life story of Vince Lombardi, in addition to the January 2005 debut of the scripted drama series TILT, which builds on the remarkable popularity of The World Series of Poker on ESPN.

ESPN2, the second most widely distributed sports television network in the U.S., now reaching more than 88 million homes, increased its total day ratings 8% and primetime ratings 12% in the fiscal year. In April 2005, the network will premiere ESPN Hollywood, a daily series focusing on the intersection of sports and showbiz aimed at getting sports aficionados revved up for ESPN2's live game coverage. In the summer, the network also plans to add a Los Angeles-based late-night sports talk show with a live studio audience.

January 2005 sees the launch of a high-definition simulcast version of ESPN2, with more than 100 live HD telecasts already scheduled for the year. By November 2004, ESPN HD had agreements in place with nine of the Top 10 cable and satellite distributors, making the service available to more than 74 million households.

ESPN Classic — now reaching more than 55 million homes — offers a blast from the past with classic, inspiring and entertaining moments from the history of sports, including the critically acclaimed biography series SportsCentury, which has already featured more than 250 sports legends. For the latest in sports news, ESPNEWS is currently distributed in more than 42 million homes, plus another 11 million as a news service for regional sports networks. ESPN Deportes, the Spanish-language sports network, was launched in January 2004 and by year end had carriage agreements with seven of the Top 10 cable operators.

For the past 25 years, ESPN has been the undisputed leader in college sports coverage, so kicking off this March is ESPNU, a multi-media college sports initiative, which will include a new 24-hour television network and content components for ESPN.com, ESPN The Magazine, ESPN Mobile, ESPN Radio, ESPN Interactive, ESPN Broadband, as well as merchandising. ESPNU will fuel the passion for college sports with even more football, men's and women's basketball, and Olympic sports coverage, all catering specifically to the college sports fan.

Remaining true to its tradition of providing the best in sports anytime and anywhere, ESPN continued to score with successes online, on the radio and on the newsstand. In 2004, ESPN.com — which celebrates its 10th anniversary in April 2005 — continued its strong performance as the leading sports Web site. ESPN Radio expanded its lineup to 275 full-time branded stations covering 80% of the country, broadcasting programming to more than 700 stations in total, reaching all Top 50 markets and 99 of the Top 100. ESPN The Magazine, with a circulation base that grew from 1.75 to 1.85 million in 2004, was named to Adweek's Hot List of Top 10 magazines for the fourth consecutive year. A new monthly edition debuted in China at year end.

X Games X, ESPN's annual action sports competition, featured 150 of the world's top action sports athletes in Los Angeles. The Games were televised completely live for the first time, resulting in record viewing, with an average increase of 47% over the previous year. Both the Winter X Games and The Great Outdoor Games also set viewing and attendance records, while the CITGO Bassmaster Classic culminated with the first non-American world champion, Takahiro Omori of Japan.

ESPN-owned BASS, the world's largest fishing organization, will enhance its ability to grow the sport by relocating to Walt Disney World in April. BASS will benefit greatly from the millions of annual Orlando visitors and the region's abundant natural resources.


Original SportsCenter anchors Bob Ley (left) and Chris Berman served as hosts for the ESPN25: Silver Anniversary Special.

Original SportsCenter anchors Bob Ley (left) and Chris Berman served as hosts for the ESPN25: Silver Anniversary Special.

The ESPN original movie 3, a biopic about legendary NASCAR driver Dale Earnhardt, stars Barry Pepper.

The ESPN original movie 3, a biopic about legendary NASCAR driver Dale Earnhardt, stars Barry Pepper.

Rece Davis and Linda Cohn hosted the first SportsCenter televised in high definition from ESPN's state-of-the-art Digital Center, which opened in June.

Rece Davis and Linda Cohn hosted the first SportsCenter televised in high definition from ESPN's state-of-the-art Digital Center, which opened in June.

ESPN Deportes featured UEFA Champions League soccer

ESPN Deportes featured UEFA Champions League soccer.

ESPNU, launching in March, will expand on ESPN's undisputed leadership in college sports coverage.

ESPNU, launching in March, will expand on ESPN's undisputed leadership in college sports coverage.

X Games X in Los Angeles featured 150 of the world's top action sports athletes.

X Games X in Los Angeles featured 150 of the world's top action sports athletes.

The Great Outdoor Games set viewing and attendance records this year.

The Great Outdoor Games set viewing and attendance records this year.