ESPN’s decision not to renew the contract of Colin Cowherd, eSports public enemy #1, was not a surprise to anyone keeping tabs on the company’s current malaise. The Bristol-based sports media giant has chosen not to renew the contracts of several key on-air personalities while also suffering the losses of its top two executives, Sean Bratches and David Preschlack. Flagging subscription numbers — 92.94 million last month, down more than 7 million homes from a high of 100.18 million homes in May 2011, only add insult to injury. The sports programming behemoth is beset by attacks from competitors, both established and new; while facing questions stemming from consumer affordability for pay TV. Needless to say, ESPN is in transition. In order to stem the tide, the company must innovate around keeping as many people in the overall content ecosystem as possible. The solution is to embrace eSports.

Bigger pond, smaller fish

The bottom line for ESPN is the market for content programming has grown. Competitors like Verizon and AT&T U-verse are serious players in the multichannel video programming distributor (MVPD) market. The winners will find new methods of getting content out to consumers. And more than anything else, eSports is a great platform for doing just that. ESPN can no longer consider itself the center of its own universe. Instead it will have to tap into other domains and avenues that stray from the traditional TV paradigm. The network has shown openness to eSports, but it’s still beholden to the model of airing content TV and leaving it at that.

ESPN must participate in the evolution of the content availability business or risk a continually eroding market share. The current era of mobile connectivity is driving greater consumer choices. The challenge for “The Worldwide Leader in Sports” is to deliver high-quality content to consumers in new, compelling ways. On a positive note, there are several ways for the sports network to strengthen their position through eSports:

• Financial investment – the eSports industry is growing, but still immature. Purchasing stakes in mainstays would be a cost effective method of aligning with growth early. See: ESPN’s stake in Hulu
• Cultural involvement – see: ESPN’s success with the X games. The cultural significance of competitive gaming will be even larger over the next 5 to 10 years. Approach eSports from its cultural roots. Grantland, an ESPN outlet, is the perfect outlet to begin experimentation.
• Enable partnerships – ESPN has the credibility to help bridge the traditional sports world with its digital counterpart and share in reaping the benefits.

The case of a disappearing generation

The next generation of children will grow up playing eSports, and there’s absolutely nothing ESPN or anyone else can do to change that fact. Meanwhile, TV and ad execs, alike, are lamenting the difficulty of connecting with millennials. However, the solution to reaching this demographic isn’t found in eSports by itself; instead, it’s in taking time to understand what makes eSports so appealing. Asking the right questions is critical: Why are eSports fans and viewers so engaged? What has kept the community self-sustaining for so long? How is the eSports experience such a global phenomenon without corporate $$$? These answers are a mirror through which ESPN can honestly view its own flaws and how to address them.

Getting ahead of the curve

The window of opportunity is now for ESPN. Today is a good time for a transition. Five years from now, the payoff of catching eSports momentum on its upswing, will be tremendous. Whatever current costs/risks exist will be crushed by the prospect of being on the wrong side of the adoption bell curve. Yet, there’s still a lot of work to be done. eSports is more wild wilderness than Shangri-La, and that’s the point. ESPN can ill afford to miss a coming golden age, especially as its own seems to be waning.

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Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed