The NFL now “thinks of itself … as a media company,” says Barbara Cochran, Radio-Television News Directors Association president.
This quote was taken from a recent USA Today article (read it here)
But what does this really mean? What is a “media company”?
Simply put, a media company makes its money by using content to attract an audience, then sells to advertisers or sponsors exposure to that audience. The NFL’s audience spans several media including television, radio and Internet as well as live events (i.e. games).
If the NFL is in the media business, then what business are its 32 franchise teams in?
Some would say that we’re in the “football” business. But what does that mean? Does it mean we make footballs? Obviously not. Does it mean we make football players? Nope. We sell tickets to football games, but does that mean we’re in the “football” business, or the event business, or entertainment?
And if we do believe we’re in the “football” business, how does that belief affect the way we see our world? Does this paradigm in any way limit our ability to see possibilities beyond the stadium? If we’re in the football business, why do we need a Website? How can we capture the revenue potential from a national fan base if we can’t see beyond the stadium?
It seems to me that as long as teams think they are in the “football” business they will be limited in their abilities to grow online revenue. Furthermore, if we don’t expand our field of vision, we could be painting ourselves into a corner.
Most people have heard a million times the story of the horse and buggy salesmen who failed to realize he was in the transportation business and so did not adapt as new technology brought cars onto the scene.
It is very difficult to run a business and see the forest for the trees. Most successful companies focus on one core thing. Intense focus on one core thing leads to optimal performance. But while you’re focused on that one thing, markets can change. So if you don’t keep your head up (or have someone in your organization who’s looking forward) you may end up out of business.
Yet even if you do have a person or people looking forward, are you really going to listen to them? Will your day-to-day success prevent you from seeing new opportunities coming down the pike?
The NFL has historically made its money from providing “content” to TV. Now, with the creation of the NFL network and the relaunch of NFL.COM, the league is beginning to go direct. It is in fact a media company, AND a content producer. With the TV business in a state of flux, who knows what will happen at the next round of negotiations. It’s always possible that the TV networks will one day choose to stop (or be forced to stop) paying for NFL content. So while the move may seem a bit aggressive, it seems to me wise for the NFL to begin preparing for the future while times are good.
I believe teams can and should be doing the same things. But first, we have to decide what business are we REALLY in?
This may be stating the super-obvious, but I think teams are in the business of attracting fans. Leagues may control content and have better methods for attracting advertisers, but the teams are what really draw people to any league; the teams are what people are passionate about.
Teams should be doing whatever they can to attract fans and involve them, and this should be the goal across media channels and before/during/after the game itself. Attracting fans will of course lead to increased revenue, but it all starts with getting fans interested and involved.
You’re in the entertainment business, it just happens to be in the sports arena (no pun intended). It seems that things that are not related to work, personal needs and growth, or home and family are entertainment.
I watch TV and movies, listen to music, and read books — all MEDIA — to escape, inform, or just flat out get entertained. It stands to reason that sports is the same. Since media entertains, educates, and informs — and football is not necessarily educational or informative to the average viewer — we can conclude that it’s entertainment.
For example, I watch Scrubs on TV. It doesn’t contribute to my work performance, help me get exercise or become a better person, and doesn’t feed my family. I just watch it for the enjoyment. The same is true when I’m listening to Dave Matthews Band, or reading a British murder mystery. And when I watch football, I do it for the same reasons.
Good, provocative question.
So what business is NBCU in? And what business is the NFL in?
One last try, this time without the link…
On one hand I think it’s good to look at the big picture and say you’re in, say, the entertainment business or the content business (and thus avoid the trap railroads fell into, not realizing their business was transportation and thus missing out on air travel), On the other, such abstractions can lead you down a lot of dead end paths.
Guy Kawasaki talks about making meaning and mantras, not mission statements. Saying you’re in the media business or entertainment business sounds kinda vague. I mean, so are Britney Spears and the Learning Company, but I bet their operations and strategy are very different.
I’d say you’re in the simulated war and warriors business. American football is the most violent team sport in the world, and the complexity of the game demands that coaches manage their teams like armies. Each game has 106 players, a boatload of coaches, formations, strategies for every down special teams, defense, offense, field position. Basketball, baseball and hockey don’t even come close.
The NFL seems to intuitively get this what with all the slow motion replays set to martial music. I would look for more opportunities to carry that metaphor forward. Fantasy leagues and Madden video games are going like gangbusters. What other gamelike elements like that can be exploited?
Oh yeah, they’ll never admit it, but the NFL is in the gambling business too.
Pat,
It’s interesting to see how the NFL sees itself in business. To me, the NFL is not in the media business or any of the other businesses mentioned. The NFL is in the relationship business. The game has been a very successful means to build long-term relationships that have created movements. Movements that rival religion. Everything the NFL does should be focused on enhancing this relationship.
I’ve often thought that the league leaves great sums of money on the table every year. Mainly because they are not sure how to fully convert fan passion and loyalty to its full revenue potential. The media business is only one business the NFL can excel in and far less lucrative than the relationship business.