Healthcare and ESPN: A Story of Two Industries



The Hospitals & Health Networks makes a great comparison between the issues that the TV industry faces and its similarities to the Healthcare Industry, using ESPN as a prime example. Here's an excerpt of the article:

The foundation of ESPN's business model is the network's perceived essentiality. Traditionally, ESPN has been included in virtually all cable bundles, resulting in high revenue from both fees and advertising. That strong revenue stream has supported the high-cost programming and talent that help make ESPN a necessity for sports fans.

[But] between consumers who have opted for skinny bundles and those who have cut the cable altogether, ESPN's revenue stream has suffered. Since 2013, ESPN has lost 10 million subscribers -- an estimated $2.5 billion in revenue. The pace of subscriber loss is accelerating: Between March and May, ESPN lost 10,500 subscribers per day.

The disruption of ESPN is strikingly similar to the disruption faced by legacy health care organizations.


For both ESPN and legacy health systems, quality of care, market presence and reputation are important strengths that will continue to be differentiating factors. However, both ESPN and legacy health care organizations face very real erosion in revenue and relevance, and neither has obvious operational or strategic options to change that trajectory.

Source: Read the full article at H&HN

Posted by Dan Corcoran on June 20, 2018 08:59 AM

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