Consolidation hits the TV industry
The moves have also resulted in “a few dedicated colleagues” who won’t continue with the company, according to Magnus. However, ESPN did not inform ADWEEK which employees were exiting.
“I understand how difficult change and shifts can be,” Magnus said in the memo. “With this reorganization, we have set up the content organization to best operate now and in the future, while creating opportunities for colleagues across the organization to grow and thrive. We will continue to tweak the structure to reflect the constant evolution of our business, and all of us should embrace change.”
With the moves, ESPN joins the carousel of media companies attempting to better align their businesses amid the ongoing streaming wars.
For instance, Paramount, which is in the midst of an ongoing merger with Skydance Media, recently shuttered its Paramount Television Studios division, transitioning all current PTVS and development projects to CBS Studios. Meanwhile, both Paramount and Warner Bros. Discovery took write-downs in the billions as value has eroded on their linear properties.
See the full memo below:
Teammates –
First, thank you all for your hard work this past weekend – we are in an incredibly busy time of year with the kickoff of our college football season, the US Open, LLWS, and so much more. We’ve had an amazing 2024 so far, and we continue to succeed in delivering outstanding content across platforms, hitting ratings highs despite industry challenges, while innovating for sports fans. You should all be proud of our collective achievements.
Since May, we’ve been working on a plan to restructure our department to improve collaboration, centralize functions, create better alignment, and redeploy resources to areas of growth – further positioning our people to deliver on ESPN’s priorities during rapidly evolving times. To ensure we identified the best structure possible, we engaged Disney’s organizational development team to interview nearly 75 ESPN stakeholders, and with their recommendations in hand, and after careful deliberation, I am pleased to share our new structure.
With these moves, I believe we will be more strategic, collaborative and nimble, as we continue to excel in every area and function. We remain committed to employee development, and the restructure will result in new positions or promotions for people who are expanding their responsibilities or taking on new challenges.
One key message heard loud and clear in the interviews was the recommendation that studio, production, and editorial functions could be better aligned for effectiveness and creativity. Our Sports Production team, led by Mike McQuade, will include production, and studio shows that are sport-specific, while our Sports News & Entertainment team, led by David Roberts, better integrates and centralizes cross-platform editorial, news and coverage, and includes non-sport specific studio shows (SportsCenter, First Take, Get Up, The Pat McAfee Show, ATH, PTI).