Lessons from ESPN, Rasmussen for ATM success

Naysayers often shout down big ideas with the words, "it can't be done." This can be the case for many industries, including innovators in the ATM industry that want to add new features such as cloud-based technology, or even the first bitcoin ATM operator.

It is highly likely that many people told the first bitcoin ATM operators that it was a pipe dream and no one would ever want to buy bitcoin from an ATM. Yet, at times, these big ideas power through anyway and create big success stories. However, often people lack the context of how it happened. This was certainly the case for ESPN.

Scott Rasmussen, president of RMG Research Inc. and co-founder of ESPN, shared some insights about the founding of ESPN and how it can apply to ATMs in a keynote address at ATMIA held from Feb. 7-9 in New Orleans, Louisiana.

The beginning

In the 1970s, there were only three channels that dominated the broadcast market and they rarely showed sports games. As a result, when Rasmussen and his father developed the idea for ESPN, it was very difficult to sell.

Eventually they discovered satellite as a possibility for distribution.

"We found out we could send a satellite signal for less money via traditional landlines," Rasmussen said. In essence, they would be taking advantage of a new technological distribution platform.

However, the challenge was how they would get the funding for a 24-hour network. No one had every run a 24-hour network before, and they would need $100 million dollars.

Rasmussen said they had to do it because if they didn't, "someone else would snatch it up." He was able to get Getty Oil as an investor, but only after a stressful board meeting where he had to give a good deal of information about his 10-year projection from 1979 to 1989.

The board members pointed out his projections were based on assumptions such as if cable networks embraced the satellite programming and if customers liked it and if advertisers accepted it.

However, in the end, Getty went for ESPN and it was a huge success, seeing 60 million viewers by 1989.

All about the fundamentals

This wasn't the first time Rasmussen took advantage of a new distribution platform. In the early 2000s, he founded the Rasmussen Reports, which was a polling network. This network took advantage of an innovative technology: the internet.

"I thought of it as a billboard," Rasmussen said in reference to the internet. He later realized it was far more useful as a media tool.

One example of how it flourished as a media tool was via its daily Presidential approval rating. Although Rasmussen initially thought this rating wouldn't be very popular, he found it was the most popular.

He compared its success to the Monday Night Sports program as it became a ritual for people to experience on a regular basis.

So how does this apply to success with ATMs?

Rasumssen said when it come to success, you have to keep the fundamentals in mind.

"The fundamentals are what made ESPN work. Fundamentals at Rasmussen are the focus," he said.

However, he added it does take luck as he could tell "hundreds of stories" where ESPN could have collapsed.

Rasmussen emphasized ATM providers have to "reach for it" when it comes to success. You have to believe in your idea and go for it, he said.