New ESPN President Jimmy Pitaro yesterday "did not lay out a new strategy for reversing" the loss of cable subscribers or for finding new revenue streams, but instead "praised what ESPN had done in recent years," according to Kevin Draper of the N.Y. TIMES. Pitaro said, "The ESPN team has put together a very smart strategy.” He added, "I come from the digital world, and spent most of my career building and investing in new media products." Draper notes Pitaro is the "first person to become president of ESPN without having previously worked at the company since Bill Grimes took the job" in '82. Disney’s consumer products division, where Pitaro is coming from, is the "world’s largest licenser of consumer products, but a comparatively small division within Disney." Pitaro is now "assuming control of a much more substantive chunk of the company." Pitaro said, “Some of the best experiences of my professional career were working with the sports business. I always knew in my heart I would return. This is a dream come true” (N.Y. TIMES, 3/6).
STAYING ON TOP: The WALL STREET JOURNAL's Ramachandran & Fritz note Pitaro "defended ESPN’s position as 'still the most beloved' destination for sports fans." Pitaro said, “We’re going to have to remain innovative and nimble and committed to making exceptional content and being aggressive in how we’re distributing that content.” Pitaro said that in his conversations with Disney Chair & CEO Bob Iger about the job, the two "spent a lot of time discussing ESPN’s digital future and how to make the launch of ESPN+ successful." Pitaro: “As we think about the future, personalization is key: delivering the right content to the right user at the right time. That is what the ESPN+ offering will address.” Ramachandran & Fritz also note Facebook COO and Disney board member Sheryl Sandberg introduced Pitaro to Iger in '10 (WALL STREET JOURNAL, 3/6).
IGER GETS HIS GUY: Author Jim Miller tweeted at "several times during the past several years, Pitaro's services were offered" to former ESPN President John Skipper, who "politely passed." Miller added this is "as close to an 'in house' selection without being from within" current ESPN ranks as one could get. Miller: "Pitaro may not know where all the bathrooms are at Bristol HQ but he knows company's past and current challenges extremely well" (TWITTER.com, 3/5). In N.Y., Andrew Marchand cites sources as saying that Skipper for years "held off Iger’s suggestion to have Pitaro serve as his right-hand man." That would have "resulted in a clear succession plan." Iger believes Pitaro’s "technological, sports and media foundation fits perfectly for this moment." A source said, “Jimmy is the guy who does great deals and still manages to have everyone like him” (N.Y. POST, 3/6). POLITICO's Cristiano Lima noted Pitaro was "widely seen as a favorite to succeed" Skipper (POLITICO.com, 3/5). Variety's Andrew Wallenstein: "It's possible more than anything that the choice of Pitaro is about keeping Bristol closer to Iger instead of letting ESPN operate at the arm's length distance its previous success allowed it to do. Those days are clearly over" (TWITTER.com, 3/5).
TECH CENTRAL: AD AGE's Anthony Crupi noted Pitaro is taking the reins of ESPN "on the eve of the launch" of ESPN+. While Pitaro's name is "not often bandied about in the sports-media press, he's a much-respected figure in West Coast tech circles" (ADAGE.com, 3/5). The HOLLYWOOD REPORTER's Marisa Guthrie noted Pitaro has "deep relationships in Silicon Valley and he is known to be close" to Iger. His ascension to the top job at ESPN is "viewed by many in the industry as a path to one day taking over for Iger" (HOLLYWOODREPORTER.com, 3/5). CABLEFAX noted Pitaro "could be a good fit" given his "background in interactive and ESPN's upcoming direct-to-consumer launch" (CABLEFAX DAILY, 3/6). VARIETY's Brian Steinberg noted Pitaro joins ESPN as the company is "placing a great deal of energy" on ESPN+ (VARIETY.com, 3/5). EMJ Capital's Eric Jackson noted Yahoo Fantasy Sports was #1 on traffic when Pitaro "ran it years ago." He added Pitaro has "worked closely with all the large video game publishers in the last few years, so I'd be shocked if there's not a major play related to esports ahead for ESPN" (TWITTER.com, 3/5).
THE RIGHT FIT: In L.A., Stephen Battaglio notes ESPN is "still a major profit center for Disney but has struggled with continued cable subscriber losses and escalating fees paid to sports leagues." A number of "high-profile controversies, layoffs and star departures have given the network the perception of being in a state of perpetual turmoil." Pitaro's experience in his "most recent post likely influenced the decision to move him to ESPN." Needham & Co. analyst Laura Martin "agreed that ESPN's new leader is a good fit with Disney's acquisition of BAMTech." Martin said, "Disney is clearly pivoting toward a more aggressive digital strategy and this executive has really deep digital credentials, which should give them a better ability to execute that strategy." She added, "Disney's biggest value gap is that it must have a succession plan. If he is a potential successor to Iger, that makes him a more valuable asset to Disney than just running ESPN" (L.A. TIMES, 3/6).
