Apple, ESPN
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SKANS School of Accountancy (Tariq Block Campus) *
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12009A
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Information Systems
Date
Nov 24, 2024
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docx
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Uploaded by MatePowerAlligator34
Identify the options for Apple to acquire ESPN and evaluate the benefits and the
drawbacks of these options. What would be the most appropriate form of
cooperation/combination between Apple and ESPN? Why?
Option 1: Apple Acquires ESPN
One of the main options for Apple to acquire ESPN would be to buy it outright from Disney.
This option comes with both benefits and drawbacks.
Benefit:
The primary benefit of buying ESPN outright is that it would be an influential and recognizable
platform for Apple to expand into the sports content realm. ESPN has high brand recognition,
great acceptance among sports fans, and relationships with dozens of major sports leagues. This
would make it a great tool for Apple to gain credibility and presence in the sports world.
Drawback:
The primary drawback of this option is that it would be a significant and risky investment for
Apple. Apple does not have a ton of experience in sports content, and ESPN is an extremely
expensive asset. Apple would also need to invest significant sums of money into ESPN’s
infrastructure and to cover the costs associated with running the platform. This could be a long
term and costly investment, and it could be difficult to know when it might start to pay off.
Option 2: Apple Licenses Content
Another option for Apple to acquire ESPN would be to license content from Disney and other
major sports leagues, as opposed to buying it outright. This option comes with its own benefits
and drawbacks.
Benefit:
The primary benefit of this option is that it would not require a huge investment upfront from
Apple. The upfront cost of licensing sports content would be much less than the upfront cost of
buying ESPN, and Apple would also have more flexibility to end the licensing agreement if
necessary or if it is not profitable.
Drawback:
The primary drawback of licensing sports content is that there may be potential legal issues
involved with it. Apple would need to make sure that their licensing agreements comply with all
applicable laws and regulations, and they would also need to make sure that their agreements do
not violate any of the agreements that ESPN or Disney has already made with sports leagues.
Apple and ESPN Cooperation
The most appropriate form of cooperation/combination between Apple and ESPN would be a
content and technology licensing agreement. This type of agreement would allow ESPN to
continue to produce and distribute its content across its own platforms and would enable Apple
to supplement or expand its own video streaming and sports content offerings.
The combination of a content and technology licensing agreement between Apple and ESPN
would provide both companies with several advantages. For instance, ESPN would be able to
monetize its content and technology more effectively by reaching a broader range of users and
viewers. Additionally, it could benefit from Apple’s vast technological expertise to help improve
its own platforms and services. Apple would also benefit from the content and technology
licensing agreement. It would be able to leverage ESPN's established presence in the sports
streaming industry and its relationships with major sports organizations. Additionally, the
agreement would allow Apple to access ESPN's entire catalogue of sports programming, giving
it a wide variety of content to offer. Lastly, by having access to ESPN's technology, Apple could
improve on its own streaming and sports content platforms.
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