December 2005

 Situation Overview and Analysis
 Challenges
 Possible Future Models
 2006 Goals and Objectives
 Target Market Defined
 Marketing Strategy and Plan
 Short and Long-term
 Appendix
2

+38%
 2004 Overall paid spend totaled $1.8 billion, +14%VYAG

Entertainment (music downloads) led growth
Online Content Spending by Category of Content
($ in millions)
$469.6
$413.5
$449.5
Personals/Dating
Entertainment/Lifestyles
Business/Investment
Research
Personal Grow th
Games
General New s
Community-Made Directories
Sports
Greeting Cards
Credit Help
$115.1
$108.6
$96.5
$90.7
$88.8
$72.9
$87.9
$87.5
$70.5
$86.9
$52.8
$38.2
$43.4
$40.6
$27.1
$36.6
$217.6
$312.9
$334.1
2004 2003
Based on Online Publishers Association/comScore Networks research
Copyright © 2005 Online Publishers Association (OPA)
+90% VYAG
3

Online content models apply best to communities, digital distribution, and decision based information such as financial news and consumer product information (Consumer Reports)
*Note: Sports includes
Fantasy Games
Community
Games
Dating
Speed/Convenience
Sports*
Greeting
Cards General
News iTunes/
Entertainment
Personal
Growth
WSJ.com/
Biz/Financial
Consumer
Reports
Vital
Research
Lifestyle Narrow
Retail/Content
Long Tail
Red = Growing
Black = Flat to down
4

+35%
 Peak sign up periods are during key times in the sporting world calendar - March Madness, MLB Season, and NFL (Fantasy) season
TOTAL Subs (Monthly & Annual) 2004 2005
14000
12000
10000
8000
6000
4000
2000
0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52
Week
5

 Analysis as well as rumors and breaking news are top choices
Analysis and insights
Rumors and breaking news
28%
25%
22%
24%
In-depth coverage of specific sports events 15% 14% 14% 44%
Fantasy and scouting information 12% 13% 14% 39%
Articles from ESPN personalities 9% 11% 13%
Customized coverage of my local teams (ESPN
Local)
6% 6% 8% 20%
Real time scores 3% 4% 7% 14%
33%
19% 69%
17% 67%
Comes with my ESPN The Magazine subscription 7% 13%
0% 10% 20% 30% 40% 50% 60% 70% 80%
First Choice Second Choice Third Choice
Competitive Advantage
Source: Insider Survey Insights: Audience Profiler, April 2005
6

Content Buckets Driving Signup
42,000
39,000
36,000
33,000
30,000
27,000
24,000
21,000
18,000
4 1, 8 5 5
3 4 , 4 4 3
15,000
12,000
9,000
6,000
3,000
0
Ge n e r a l N F L
2 8 , 8 0 8
18 , 9 2 2
15 , 9 0 4
13 , 8 8 4
9 , 8 8 5 9 , 8 16
8 , 8 4 3
7 , 3 8 7
N B A R u m o r s M L B C o l l e g e R t i m e F a n t a sy B l o g s L o c a l
4 , 9 7 7 4 , 8 4 3
3 , 7 2 5
C h a t s R e c r u i t M i sc .
6 2 7
M a g
3 2 5
R a d i o
Source: May ’04- December ’05 Hitbox Data
7

Context, Time Of Year, Single Article/Writer Power
 Top 75 Articles Driving Signup
 Top 25 Account for 80% of sign ups
Topic
1. Insider Index
2. Chad Ford
3. Rumor Central
4. Scouts Inc.
5. Benefits Page
6. RealTime Scores
7. Fantasy Sports
8. Mel Kiper Jr.
9. ESPN Local
10. Chat Transcripts
11. Recruiting
12. Rob Neyer
13. Coll. Notebooks
14. Jerry Crasnick
15. Peter Gammons
16. Chris Sheridan
17. John Hollinger
18. Blog: Karabell
19. NFL Insider
20. Blue Ribbon
21. MLB Insider
22. Chris Mortensen
23. Blog: Olney
24. PFW Football
25. Bill Simmons
Total
30,101
19,028
18,822
16,992
11,754
9,885
8,389
8,136
7,387
4,977
4,843
4,113
3,772
3,388
3,348
3,260
2,702
2,677
2,461
2,456
2,005
1,958
1,909
1,805
1,616
% of Top 75
15%
9%
9%
8%
6%
5%
4%
4%
4%
2%
2%
2%
2%
2%
2%
2%
1%
1%
1%
1%
1%
1%
1%
1%
1%
Topic
26. NBA Insider
27. Steve Phillips
28. Jay Bilas
29. College Insider
30. TCMen Insider
31. Blog: Clayton
32. Randy Mueller
33. Tristan Cockcroft
34. Bracketology
35. Rich Podolsky
36. Blog: Fowler
37. PTI
38. NBA Draft Index
39. Blog: Feldman
40. Craig James
41. College Webcast
42. ESPN Magazine
43. BB America
44. Beano Cook
45. Len Pasquarelli
46. Joe Theismann
47. Gary Gillette
48. Blog: Katz
49. Scott Engel
50. Brian James
807
773
747
627
618
561
442
440
335
429
404
337
Total
1,583
1,459
1,178
1,172
1,159
1,080
1,066
1,022
1,006
984
872
853
809
Topic
51. Elias Says
52. Radio Insider
53. Terry Brown
54. Blog: Broussard
55. Jeremy Green
56. Blog: Wickersham
57. Trev Albers
58. Joe Morgan
59. Tim Legler
60. Fran Fraschilla
61. Tim Keown
62. Rod Gilmore
63. Bill Walton
64. Blog: EJ Hradek
65. Merril Hoge
66. Greg Anthony
67. Sean Salisbury
68. KC Joyner
69. Ron Jaworski
70. Blog: Joe Schad
71. Michele Tafoya
72. John Kruk
73. Rick Spielman
74. George Karl
75. Inside Edge
Total
335
325
310
277
221
255
249
234
221
218
174
156
135
130
126
123
114
112
108
107
104
103
103
100
100
8

What value does ESPN Insider have to potential fans for its price?
70
40
35
30
Vulnerabilities
60
55
50
45
Price/Value
Amount of
Articles
Uniqueness of
Articles
Ease of Use /
Navigation
Quality of
Articles
Fantasy
Information
Appearance of
Insider Area
Vulnerabilities
20
15
15 20 25
Satisfaction (Top Box %)
30 35
Strategic
Advantages
Advantages/
Differentiators
9

Insider Cancellations
Free Trial Only 8%
Short-term Usage
6%
Other 21%
Content Available
Elsewhere 7%
Time & Interest
58%
Definitions
 Time & Interest

Not enough time to use
 Don’t use enough

Lost interest

Not satisfied with content and features
 Free Trial Only
 Short-term Usage

Seasonal purchase

Signed up for one article
 Content Available Elsewhere
 Perception content is on ESPN.com or other sites
Source: Stream Call Logs 7/05 – 10/05
10

 Brand value unclear and undefined to users

Perception Insider content can be found elsewhere (ESPN or Other)
 Price point to value (real and perceived)
 Overall market adoption of paying for content online
 Consumer motivations remain unclear
 Consumer awareness of key Insider attributes remain low
 Magazine subscribers slow to convert to “FREE Insider”
 Monthly retention low - 32% after 13 months
 Annual retention low – 69% after 13 months
 Conversion within sign up process is low

November 200,000 visits to sign up page with 5% conversion to free trial
11

New Media Revenue Magazine Circulation
Reaching maximum effectiveness for one goal causes a decrease in effectiveness for achieving the second goal
12

 Currently, ABC accepts Insider as a component to the purchase of ESPN the Magazine with no monetary value and views it as an editorial extension and therefore not a premium with purchase
 The purchase price must be about $15.08
 The duration must be include a minimum of one issue
 Insider can not be sold without the Magazine
 Any premium offers to Insiders must be deducted from the purchase price of the subscription
 The digital issue of the magazine may not substitute for print delivery
13

 Premium sold with subscription
 Premiums are anything offered to a subscriber at time of solicitation, in addition to regular issues of the publication itself, and shall be reported in Bureau reports as a premium, regardless of whether said extraneous thing be given with or without additional payment above the subscription price and whether or not such extraneous thing is given only to new subscribers or to all subscribers. In addition, any presentation to current subscribers which, in the opinion of the managing director, implies future receipt of such extraneous things in conjunction with continued (or future) subscriptions will cause renewal subscriptions to be judged as premium induced. The number of subscriptions, whether new or renewal, involving such premiums taken during any period for which
Publisher's Statement is filed shall be reported in the paragraph designated for that purpose and the nature of the premium and the provisions of the offer and the distribution thereof shall be described in Publisher's Statements and Audit Reports.
Premiums are anything except:
 (1) Complete issues of newspapers or periodicals sent to all subscribers for the period included in the offer.
 Partnership Sales
 All copies served to individuals and tied to a partnership agreement (e.g. subscription to a magazine partnered with the purchase of season tickets to sporting or cultural events) shall be classified as "Partnership" subscriptions or single copy sales and shall be reported in Publisher's
Statements and Audit Reports except as otherwise permitted or prohibited
 Club/Membership sales
 All copies served to individuals as a result of membership in a club or similar organization shall be classified as "club/membership" subscriptions and shall be reported in Publisher's Statements and
Audit Reports except as otherwise permitted or prohibited
 Sponsored Sales
 All copies or subscriptions purchased in quantities of 11 or more, which in the opinion of the managing director promote the professional or business interests of the purchaser, shall be considered "Sponsored" subscriptions or single copy sales and shall be reported in Publisher's
Statements and Audit Reports per the provisions
For More Detail visit: http://www.accessabc.com/bylaws/bylaw2426.htm
14

15

Vertical Content with Access To Tools That Cut Across
Magazine NFL NBA MLB
INSIDER
College Scouts Recruiting Fantasy Radio
ESPN Local
Blogs
Realtime Alerts
Wireless
Rumor Central
Other Considerations
• Role and position of video
• Development of multimedia/interactive content and “shows”
• Providing content and information that informs gambling
16

 Range of prices based on value and demand
 Multi-subscription discounts
 Day or week(s) pass - ie Super Bowl, Draft, March Madness
 A la carte article/video purchases (iTunes)
17

18

 Outline product considerations and pricing
 Evaluate options to include Magazine participation in all steps
 Do we need to present and discuss with ABC?
 ESPN should partner with ABC as an innovative leader in multimedia for the magazine industry
 Research what the consumer wants
 Better define and understand the target market
 What products appeal to them
 Validate product concepts
 What is the market potential
 What are the pricing scenarios that maximize the market
19

 Situation Overview and Analysis
 Challenges
 2006 Goals and Objectives – Status Quo Insider
 Target Market Defined
 Marketing Strategy and Plan
 Short and Long-term
 Appendix
20

Total Paid Subscriptions
Revenue
Subscriber Acquisition
FY 2006 Goal
342,000
$14,455,400
81,960
FY 2005 Actual
260,040
$11,776,720
58,353
%CHG
+32%
+23%
+41%
21

 Identify Insider target audience
 Clearly define Insider brand and value
 Support Magazine Circulation and ABC requirements
 Launch a comprehensive on and offline acquisition plan that is targeted and relevant based on time and place
 Test: price, trial length, messaging, sign up process
 Address questions of proper business model for magazine and paid content
 Launch retention plan that includes communication to Insiders throughout the lifecycle and targets key moments of attrition
 Build additional on and offline product features and values
22

 Situation Overview and Analysis
 Challenges
 2006 Goals and Objectives
 Target Market Defined – Online Paid Sports Content
 Marketing Strategy and Plan
 Short and Long-term
 Appendix
23

Core Consumer Insight – Key Segments Drive Usage
 Online 3+ per week with a broadband connection, have a credit card, and watched sports tv programming in the past 7 days and:
 Fantasy Avid (1.8 million) participated yesterday fantasy game
 Fantasy Moderate (3.6 million) participated past 30 days fantasy game
 Gambler (3.1 million) Games online casino gambling past 30 days
 Sports Fanatic (2.7 million) News sports yesterday, any sports magazine read last 30 days, sports newspaper last 7 days, any sports radio last 7 days
 Digital Lifestyle (1.3 million) Home banking online, newspaper reading primary online, any online purchase past 30 days

ESPN Fanatic (1.7 million) ESPN tv last 7 days, ESPN the Magazine last
30 days
 League Fanatics Heavy users of league specific sites
Source: @plan Winter 2005
24

 Situation Overview and Analysis
 Challenges
 2006 Goals and Objectives
 Target Market Defined – Online Paid Sports Content
 Marketing Strategy and Plan
 Short and Long-term
 Appendix
25

Move Insider Forward While Evaluating Long-term
 Short-term
 Better define communication of brand value when building awareness

Test promotional initiatives
 Focus on contextual optimization and targeting
 89% of 2005 trials came from content links
 Replicate principals of context and targeting within ad serving
 Optimize sign-up process
 Trial duration and price
 Test search engine marketing
 Long-term
 Research to better understand consumer needs
 Launch Lifecycle communication plan
 Product modifications and enhancements
26

Insider Brand Architecture: Focus Acquisition Marketing on Vertical Interests and Brand Name Contributors – Demonstrate How the Insider Knows
USP: The first to know
27

Seasonal Themes
Primary
First Half Communication Themes
JANUARY FEBRUARY MARCH APRIL MAY JUNE
2 6 16 23 30 6 13 20 27 6 13 20 27 3 10 17 24 1 8 15 22 29 5 12 19 26
NFL Playoffs
NBA All-Star
Game
March Maddness Baseball Season NFL Draft NBA Playoffs
Secondary NFL Free Agency Winter Olympics Spring Training NBA Lottery
 Consistent building of brand awareness and higher R&F around key events on the calendar
 Key Events: March Madness, MLB season, Football/Fantasy
 Promotional Tests Q1 – Q2
 Open House - Basketball content
 Sweepstakes – waiting confirmation of advertiser support
 Premium with purchase - fleece
 Pricing promotions - $19.95
28

 With 89% of trials coming from editorial links, this is a key area to focus and measure
 Improved reporting and analyses of what is working:
 Content type
 Writer
 Headline language
 Placement
29

 Conversion focus by targeting qualified audience with impact units and frequency goal of 12-15 impressions per month
 Factors and actions to consider for cookie
 Frequent visitors to ESPN.com, 4+ days per week
 Non-Insiders frequent visits to Insider
 Visitors to Insider sign up page
 Visitors to “Today’s Line”
 Visitors to Injury Reports
 Fantasy Sports Players
 ESPN.com commerce transactors (Gameplan, FullCourt, Fantasy)
 ESPN the Magazine readers on database
 Lapsed users – trial & paid
 Targeted Acquisition Communication to TwinTops
 We will need to monitor this activity for the first 90 days to understand the activities of the converted and optimal frequency
 Minimum to convert, maximum before ineffective
 Targets that convert
30

 Determine proper entry points to deliver right amount of information with least amount of clicks needed to convert
 Minimize loss from additional clicks
Offline media
Online media
Editorial
Content Sample Benefits Sell Page
Signup Form
We are currently evaluating multivariate testing firms to help us measure and optimize this process
Testing of embedded form in
Benefits page is being designed
31

 Determine optimal price, trial and duration mix to maximize sign up, retention, and revenue
Price/Offer Test
2 year offer for $59.95
No trial on Monthly Subscriptions
Seasonal 3-6 month offer.
Raise Monthly Price to $8.95
Targeted Pricing (i.e. $14.95 for FF users)
Reasoning
Increase retention due to longer subscription length.
Drive users towards annual subscription, where there is still a trial.
Concerns
Make sure there is no drop in signups due to too many options on sign up page. Could impact revenue if a large number of users sign up for this instead of annual offer.
Will need to monitor the affect on
Monthly signups and Annual retention. Make sure we're not losing users.
Need to find the right length/price, so the annual offer is still the best deal.
Gain users who are only interested in content during a specific season
(i.e. Football).
Drive users towards annual subscription, increase revenue from those who do choose monthly offer..
Give users on the margin an incentive to sign up.
Could have negative impact on subscribers and revenue if monthly users declines drastically, and they do not convert to Annual.
Need to target efficiently to avoid decrease in overall pricing power
32

 SEM takes a great deal of time, focus, and knowledge to maximize the media investment
 Partner with top SEM firm such as iProspect, iCrossing etc
 Bundle ESPN New Media search into the effort to create efficiencies
 Current learning from past ESPN SEM efforts:
 Most targeted words deliver greatest ROI
 Need to understand balance between reach keywords and targeted words in search process
 Not enough knowledge of frequency before conversion
 Need to customize landing page to keyword
 Develop RFP for SEM firms
 Work with SEM firms to understand proper level of investment required to get comprehensive learning
33

 Lifecycle communication plan
 Trial Retention: Drive product engagement in first 45 days
 Benefits and values communication
 Renewal Engagement: reinforce value of product with communication on and offline benefits prior to expiration
 Monitor inactivity
 Up sell monthly users at key attrition points
 Cancellation saves
 Total Cancels 142,490
 Total Saves 8,519
 Work with West to train staff on key save triggers

Identify pricing and pay options that may increase save percentage
 Credit Card Failures (FY ’05 66,997)
 Optimize all technical capabilities to limit CC failure
34

 Lifecycle communication to inform, develop engagement, and prove need state to subscribers so that by the time subscribers get to renewal, they can’t imagine being a fan without Insider
 There are sports fans and there are Insiders
RENEWAL PROCESS
Continuously Monitor of 45 days of inactivity: Deliver customized email with offer and relevant content
1. Update Info Request
2. CC Failure notification
3. Retry
Bi-monthly event invite or special Insider Only offer,
New Feature announcements
1. Key Event/Offer
2. Satisfaction Survey
Monthly Newsletter
1. Discount Pricing Offer
2. Satisfaction Survey
3. Second discount offer
First 45 Days 60 days to Renewal
• Special Insider Only offers
• New Feature announcements
• Seasonal content reminders: Free agency rumors, drafts, season previews, playoffs, etc
• “Big” article highlights
60 Day Non-Renewal
• Passive login
1. Discount Pricing Offer banner
• Active login
2. Discount Pricing Offer
Page: We Want You Back with relevant content
3. Satisfaction Survey
35

Customized
E-newsletter
Engagement past 45 days, move to lifecycle plan
Highlighting key features and link to relevant article based on indicated team/sport interest
Email Insider only offer with highlight of key benefit
Setup
Wizard
Upon Completion of sign up and payment, extend the multimedia tour into a guided
“setup” of how to get the most from Insider
Activation
Insider
Promotional
Inventory to
Highlight
Features
Customized
Welcome
Email
Highlighting key features and link to relevant article based on indicated team/sport interest
Develop a communication plan that sequentially gets
Trial users to adopt usage of more features
36

 Monthly subscribers stay on for an average of 6-8 months
 By that time they have spent $42-56
 Targeted, proactive annual offers will engender greater loyalty expanding lifetime value
First 45 Days
Event/Special
Offer Invitation
Invitation for
Annual offer at
$29.95
Month 2 Month 3
Satisfaction Survey
Month 4 Month 5
Invitation for Annual offer at $19.95
Month 6 Month 7+ 60 Day Non-Renewal
37

 Better train call center reps on connection between cancellation reason and benefits of Insider components
 Maintain better dialogue of up coming features reps can highlight to callers
 Identify pricing options and scenarios
 “Seasonal buyers”
 Bridge to next season pricing gap
 Monthly buyers to annual

Pricing scale for number of months already paid
 Too “expensive”
 What does the user think a fair price is – last offer pricing bands
38

 Email
 Renewal Notification email sent out 10 days prior to renewal (Annual subs Only, about 100 updated CC far)
 Email Notification sent each month to users whose Credit Card tied to Insider Account is expired (started in September,
1,200 users updated CC)
 Email Notification sent to users once renewal fails due to bad CC (4,700 users updated CC so far in 2005)

On-Site
 User is asked to update credit card before they can access Insider content during retry period (8,500 users updated CC so far in 2005)
 Users can now pay with PayPal, which should have a higher success rate.

Back-end Processes
 Paymentech auto updater. We send CC info to Paymentech and see if they have any updates to the record. We see a
3-4% match rate, but need to dig into how successful transactions are for those accounts.
 Settlement Retry Period: We retry the users credit card 5 times before canceling the subscription (Period currently set to 15 days. Working with Mag on feasibility of extending). In October 3.44% of all renewals occurred after the first renewal attempt failed (4,400 subs).
 Set up as a Recurring Biller at Paymentech, should ease some restrictions on allowing CC's to go through even if expired.

Other
 Met with WSJ.com and other ESPN contacts to discuss what they do to combat this problem. Seems we do the majority that everyone else is doing.
 Working on a test with Chase to determine exactly why some of these transactions fail. The codes we get back from
Paymentech are too general, so hopefully this will give us some better information.
39

 Editorial : identify Insider contributors with in logo across channels including TV, radio, and print
 Extending the recognition of top name talent contributing to
Insider further builds the radnd’s value and justifies the premium
 Commerce partnership: up sells, inclusions, and free trials
 ESPNShop, PPV, and Fantasy
 Upsell and free trial opt-in check box in shopping cart check out
 Promotional value and incentive for inclusion with purchase
 Ie. ESPNShop – spend $100 and get 6 months of Insider where
ESPNShop contributes the value of 6 months back to Insider for ABC purposes
 ESPNZone – trial passes and up sells

Sign up for Insider by adding it to your bill and get a food item free

Develop sales incentive plan for waiters/bartenders

Give one day trial passes
40

 Local newspapers: ESPN local is already driving traffic to these sites, many require registration
 Develop co-registration plan within their sports sections
 Pay local papers a bounty per paid Insider
 Need to identify top papers in top markets to target efforts towards
 May be able to leverage some corporate newspaper ownership structures
 Retail and Advertiser Partnerships

Option 1
– included with purchase of product or price point is Insider.
Partner buys Insider from ESPN at negotiated rate. Partner gets additional communication to this audience through email and onsite promotion to their group during the year

Option 2
– Sponsored trials and “Open House” offers

Example Targets :
 Consumer electronics around big events – Super Bowl, Playoffs, March
Madness etc.: Best Buy, Circuit City, Walmart, iTunes
 Sporting Goods retailers: Dick’s Sports, Sports Authority, Modell’s
 Automotive –Test drive incentive, best customer reward
 Financial Services – reward redemption, best customer reward, consultation premium
41

 Develop additional benefits and features both edit and non-edit that bring the Brand Essence to life
 Greatest Access to Sports
 Access to ESPN Inc.

Preview of new .com and fantasy features/games

EOE premiers online for Insiders only (Yahoo/NBC)

Invitation to Insider only Editorial Panels w/Q&A at the Zone
 Participation in exclusive research panel helping guide the next generation of ESPN products
 Insider only Bristol tour
 VIP treatment at ESPNZone – call ahead reservation privilege
 Advance ticket access to ESPN events
 Access to buy tickets to sporting events, personalized list of events
(including active.com content) for their location – MySports Calendar
 Presale of ESPN Enterprise products
 Free shipping from ESPNShop
42

 Editorially driven features
 Enhanced Fantasy section
 Fantasy information is the #2 most desired feature with 72% of
Insiders interested/very interested
 Only 53% are aware of Insider Fantasy Features
 Fantasy content is Top 4 reason for sign up
 Insiders only message board and chat (SportsNation)
 VIP call-in/email for radio and interactive TV
 More video – ie Game Plan and Full Court highlights
 Personalized Index page
 Stats and tools enhancements
 Past issue magazine archive
43

 Rationale: Video and multimedia allows the product to come to life while demonstrating the brand value
 Utilizing top name talent that contribute to Insider, develop a multimedia, interactive tour of the features and benefits of being an Insider
 To the extent possible, we show our “sources” as representation of the access contributors have and bring to the Insider editorial product (SportsCenter concept)
 If space and budget allow, this could be tied to television advertising
44

45


ABC MAGAZINE RULING
 In October of 2002, the Audit Bureau of Circulation (ABC) approved ESPN Insider as an editorial extension of ESPN The Magazine. Therefore, ESPN Insider is a subset of ESPN The Magazine and does not exist without The Magazine.

Since ESPN Insider is now an editorial extension of ESPN The Magazine as determined by ABC, this product has no monetary value. The monetary value is associated with the subscription to The Magazine only. Any sales that are generated are for subscriptions to The Magazine, which includes access to
ESPN Insider. ESPN Insider CANNOT be sold as a stand-alone product.
 ESPN Insider also cannot be separated from ESPN The Magazine. Anytime ESPN Insider is offered to a consumer so must an accompanying subscription for the same duration. ESPN Insider can be compared to a section of ESPN The Magazine, such as The Jump. In this example ESPN The Magazine can exist without The Jump section but The Jump cannot exist without ESPN The Magazine.

ESPN Insider is not consider a premium to an ESPN The Magazine subscription and cannot be compared to the marketing tactics and ABC guidelines of other premium sold subs, such as the fleece.

FREE OFFERS
 ESPN The Magazine’s circulation department must approve any free offer over 2 months. The free offer must have a continued option of a paid subscription term. Free offers that do not continue as a paid subscription cannot be counted in The Magazine’s rate base and become a pure expense in fulfilling the issues ($1 per issue), which will not be carried by The Magazine and must be paid by the requesting party.
 PRICE
 Subscription price must not be below .58 cents per issue or .58 cents for two weeks of Insider.

TERM
 Subscription term must include at least one issue of the magazine. ESPN The Magazine comes out every two weeks with 26 issues in one year.
 PREMIUM OFFERS
 Any time a premium is offered with the sale of an Insider subscription, the retail cost of that product or service must be deducted from the total price of the subscription and be reported as the sale price to
ABC. Example offer: Get ESPN The Magazine Insider for one year for $39.95 and get a Fleece. The cost of the fleece is $7, so the reported price of the subscription to ABC is $32.95. The above price guidelines should be taken into consideration when offering premiums.

ESPN THE MAGAZINE DIGITAL EDITION
 ESPN The Magazine Digital is an added value to the subscriber and must never be used as a substitute to delivering the print edition.
46

Insider Retention
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
1 3 5 7 9 11 13 15 17 19 21 23
Month
Monthly Retention
Annual Retention
47

Leverage Brand Essence to Develop Creative that Speaks to the Product and Measure Value of New Attributes

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
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





•
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



ATTRIBUTES
Rumors & Breaking News
RealTime Scoreboards
ESPN Radio Podcasts
Local Sports Aggregation
Wireless Alerts
Customization
Biggest Names in Sports
Journalism with insider access
Fantasy Tools
College/Pro Recruiting – Scouts,
Inc
ESPN The Magazine
Blogs
365/24/7 coverage of sports
Brand Power
BENEFITS
Know News before it hits the headlines
Magazine Previews and Next
Insider Access /Perspective of contributors
Integration across .com -
FANTASY
Technology
 Presentation to user
 User convenience
Brings everything together, customizable and convenient
Insider
Brand
Essence
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
VALUE
Convenience
In The Know
Knowledge
Mobility
Bragging rights
Behind the scenes with more than one perspective
(GM, player, coach)
Access
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PERSONALITY
Connected
Authoritative
Trusted (WWLIS)
ESPN brand voice
Bold
Knowledgeable
Omnipresent
Experienced
48

80%
70%
60%
50%
40%
30%
20%
10%
0%
Customized local content Fantasy Content desired
ESPN The Magazine
Very Desired
Wireless Alerts Radio Insider
Awareness
Source: Insider Survey Insights: Audience Profiler, April 2005
49

Among those who pay to participate in fantasy games and own Insider:
Reason for sign-up
Rumors and breaking news
Analysis and Insights
Fantasy and scouting information
In-depth coverage of specific sports events
Articles from ESPN personalities
Real time scores
Customized coverage of my local teams
Top 3 Choices (Net)
67.6%
64.6%
58.1%
37.7%
29.2%
14.4%
14.1%
Comes with my ESPN The Magazine subscription 11.1%
Source: Insider Survey Insights: Audience Profiler, April 2005
50