Our digital media strategy is unproven and may not generate the revenue we anticipate.
We maintain contact with, and provide entertainment to, our global follower base through a number of digital and other media channels, including the internet, mobile services and social media. While we have attracted a significant number of followers to our digital media assets, including our website, the future revenue and income potential of our mobile & content business is uncertain. You should consider our business and prospects in light of the challenges, risks and difficulties we may encounter in this new and rapidly evolving market, including:
• our digital media strategy requiring us to provide offerings such as video on demand, highlights and international memberships that have not previously been a substantial part of our business;
• our ability to retain our current global follower base, build our follower base and increase engagement with our followers through our digital media assets;
• our ability to enhance the content offered through our digital media assets and increase our subscriber base;
• our ability to effectively generate revenue from interaction with our followers through our digital media assets;
• our ability to attract new sponsors and advertisers, retain existing sponsors and advertisers and demonstrate that our digital media assets will deliver value to them;
• our ability to develop our digital media assets in a cost effective manner and operate our digital media services profitably and securely;
• our ability to identify and capitalize on new digital media business opportunities; and
• our ability to compete with other sports and other media for users' time.
In addition, as we expand our digital and other media channels, including the internet, mobile services and social media, revenue from our other business sectors may decrease, including our Broadcasting revenue. Moreover, the increase in subscriber base in some of these digital and other media channels may limit the growth of the subscriber base and popularity of other channels. Failure to successfully address these risks and difficulties could affect our overall business, financial condition, results of operations, cash flow, liquidity and prospects.