The Athletic's CASE STUDY

The Athletic, founded in 2016, has quickly established itself as a trailblazer in the digital sports media industry. In an age where information is increasingly commoditized, we found The Athletic’s unique business model and commitment to high-quality journalism particularly compelling. This case study explores the factors behind The Athletic’s rapid ascent and sustained growth, focusing on its subscription-based model, user experience, and the quality of its content.

Foundations: From Vision to Execution

From the very beginning, The Athletic aimed to disrupt the traditional sports journalism landscape. Faced with declining revenues and increasing competition, traditional outlets were struggling. It was in this environment that The Athletic emerged, fueled by an ambitious vision—to offer die-hard sports fans in-depth, ad-free journalism. The company’s founders, Alex Mather and Adam Hansmann, were explicit in their mission: "We want to be the best sports writing room in the world," Mather asserted in an interview with The New York Times.

Subscription-Based Model: The Pillar of Success

One of the most radical aspects of The Athletic’s business model is its reliance on a subscription-based revenue stream, as opposed to traditional advertising-based models. This approach not only ensures a steady income but allows us to maintain editorial independence and avoid the pitfalls of click-driven content. Upon subscribing, users gain unrestricted access to a plethora of articles, podcasts, and videos, cutting across a vast array of sports and leagues. As a result, subscribers aren’t merely paying for content; they are investing in an ad-free, high-quality user experience. According to a report from Deloitte, subscription-based businesses have grown five times faster than the S&P 500 over the past decade, and The Athletic is no exception. The company boasts over 1 million paid subscribers.

Quality Over Quantity: Depth and Breadth in Content

The Athletic’s editorial strategy centers around providing in-depth coverage for a specific, highly engaged demographic—sports fans who crave quality. This is why our content teams include experienced journalists, former athletes, and renowned authors who collectively elevate the discourse around sports journalism. “The Athletic delivers journalism that caters to the analytical and emotional needs of sports fans, making it a unique value proposition in the media market," commented Keith Poole, Head of Digital Media at The Guardian. Subscribers to The Athletic appreciate the subtle yet significant difference. Without the distraction of ads and pop-ups, readers can focus solely on the content, enjoying articles that are often longer, more researched, and nuanced compared to those on traditional sports news websites.

The Numbers: User Engagement and Retention

Engagement metrics also reflect the uniqueness of The Athletic’s offering. According to Statista, the average internet user spends about 6 hours and 42 minutes online daily. In the midst of this digital noise, The Athletic’s readers spend more than double the amount of time on the platform compared to traditional sports news outlets. Research from Parse.ly shows that articles on The Athletic receive higher engagement—approximately 54% more time spent reading vs. their competitors. Retention rates are equally impressive. While many subscription services struggle with churn, The Athletic maintains an annual retention rate of around 80%, according to TechCrunch. This impressive statistic speaks volumes about the quality of the content and the stickiness of the platform.

Innovative Content: Podcasts and Interactive Features

In recent years, The Athletic has expanded its content offering to include podcasts, which have become an integral part of its media ecosystem. Catering to the growing preference for audio content, The Athletic's podcast network features shows that delve deep into game analyses, exclusive interviews with sports personalities, and special episodes focused on cultural phenomena within sports. Podcasts like "The Athletic Football Podcast" and "The Athletic NBA Show" have garnered significant listener bases, further cementing the brand's authority in sports journalism. As studies from Edison Research reveal, 75% of podcast listeners take action from podcast ads, suggesting potential future revenue streams for The Athletic. Recently, The Athletic has been experimenting with interactive features in its mobile app, such as live Q&A sessions with writers and real-time match analyses. These features not only deepen engagement but also build a robust community of sports enthusiasts.

Partnerships and Collaborations: Expanding Horizons

While subscriptions remain the core revenue driver, partnerships play a significant role in The Athletic’s strategy. Collaboration with popular sports media companies, former athletes, and other experts adds another layer of credibility and reach. In early 2022, The Athletic announced a partnership with BetMGM, combining sports journalism with insights on sports betting, a growing area of interest among sports fans. This partnership exemplifies how The Athletic can diversify its offerings while maintaining its commitment to high-quality journalism.

The Ethical Dimension: Ad-Free Environment

Amidst widespread concerns over data privacy and the ethical dimensions of digital advertising, The Athletic’s ad-free model stands out. It promises not to track subscriber activity across the web, presenting a strong ethical stance that resonates with modern consumers increasingly wary of ad tech. "As digital privacy becomes a growing concern, subscription models like The Athletic's that offer an ad-free and secure reading experience will likely have an edge," predicts Andrew McAfee, Principal Research Scientist at MIT.

Challenges and the Road Ahead

Despite its successes, The Athletic faces challenges that could impact its future trajectory. The sustainability of high-quality journalism in a subscription-based model is constantly under scrutiny, particularly in the face of rising competition. Platforms like ESPN+ and even traditional newspapers moving to digital models represent significant competitive pressures. In addition, maintaining high standards of content while expanding coverage could stretch resources. This calls for a strategic balance between growth and quality. However, if recent trends are any indication, The Athletic appears well-poised to navigate these challenges.

Conclusion: Setting the Standard in Sports Journalism

The Athletic has revolutionized sports journalism by emphasizing quality over quantity, supported by a robust subscription-based model. With its ad-free, premium content, the company offers a unique value proposition that has resonated deeply with sports fans across North America. As we look ahead, we believe The Athletic’s commitment to high editorial standards and innovative user experience will continue to set it apart in an increasingly competitive landscape. By focusing on high-quality journalism, user engagement, and innovative features, The Athletic is not only thriving but also redefining what modern sports journalism can be. For fast-moving companies in the media space, The Athletic offers a compelling blueprint for success.