VOTE Vendedy - U.S. Entrant In Global Social Impact Startup Competition

I previously featured Vendedy -- a social impact-driven double bottom-line startup that stands apart -- and qualifies as being a "must know" company.  Manatt Digital Media is proudly an investor in this inspiring company -- which is the first online platform for artisans of the developing world -- connecting street vendors to consumers globally.  Think "Etsy meets eBay for street vendors" globally.  

Vendedy (website here) reflects the power of "digital" in all respects: (1) global/borderless; (2) images and the impact of story via visuals; (3) micro-transactions that can not only change lives, but also can drive an extremely profitable business in our new digital "share economy"; and (4) social impact, which is increasingly important to millennials and all of us alike (which the studies show).

Vendedy represents the U.S. in a Chivas-sponsored global contest for social impact startups and now has the opportunity to win a share of $250,000 towards a grand prize of $1 million. Every week, for the next several weeks, each startup will be awarded up to $50K based on their share of votes.

With your votes, we can help Vendedy expand from Haiti to Latin America. Vendedy serves a market where over two billion people, who live on less than $2 per day, make their living selling handmade crafts on the street.  Vendedy already has scored global partners, including IBM, and has received support from the Clinton Global Initiative. It is an incredible story -- and compelling vision.

Vote TODAY for Vendedy here by clicking this link (you’ll need a Facebook or Google Plus account). 

And, share Vendedy's innovative, inspirational, and empowering mission with your networks -- and don’t forget to vote again the following weeks since it is a weekly competition that drives to the ultimate winner.

Vendedy is worthy -- very worthy -- of that honor.

Mick Jagger - A Review of the Stones SD Concert (& What He Teaches All Entrepreneurs)

Saw the Rolling Stones Saturday night in San Diego with my wife, Luisa, for the opening of their latest tour.  Amazing seats -- and it was an amazing show.  Wasn't my first Stones show, but certainly was one of their best (if not THE best).  Mick Jagger strutted and ran at full speed across the massive stage for the entire 2.5 hours.  AND HE IS 71!

Mick teaches and inspires us in many ways -- lessons for us all (including you entrepreneurs).  Mick, Keith, Ronnie and Charlie certainly don't need the money.  It isn't about the money (was it ever for them?).  They are doing it for the love of the game!  You can see it with every move Mick makes -- and with every smile Keith gives as he watches Mick do it (even Keith doesn't believe it!).  You can see it by the full 100% Mick, Keith, Ronnie and Charlie give throughout the entire show.  And, you can see it in their overall passion -- their spirit overshadows their age.  They are timeless.  They are what rock and roll -- and being an entrepreneur in any field -- is all about.  And, rocking unapologetically -- and at the top of their game -- at age 71 (Charlie Watts is 73) IS rock and roll!

These are all pics I took at the show -- and none of them are close-ups.  All of them are from our perspective.  Amazing ...

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5 Questions With Narrative CMO/Co-founder Oskar Kalmaru - EXCLUSIVE Q&A With Wearable Camera Company

Last week, I attended the first Wearable World Congress in San Francisco. Of the companies showcasing there, Narrative -- a Swedish-based, significantly-financed startup in the world of wearable cameras -- was one of my favorites.  Narrative's camera (a 1"x1" square) clips on to your clothes anywhere and, therefore, frees up your hands to ... well ... live, experience and spontaneously capture life's moments (rather than consciously record your living).  The small device for now takes only stills (although video is coming), and captures a still image every 30 seconds for up to 30 consecutive hours.  Just imagine the possibilities (artists, performers, moms, dads)!  I spent some time with CMO/Co-founder Oskar Kalmaru at the event -- and invited him to join my "5 Questions With" series.  So, on with the questions -- and Oskar's unedited answers.

(1) What is the reason your company exists (and what problem(s) are you looking to solve)

Narrative exists to help people capture and share, but not disrupt, their moments. Normal cameras need a lot of conscious actions – bringing them with you, deciding when to take a photo, pulling them out from the pocket and so on. Pulling out a camera also disrupts the moment: it makes people uncomfortable and the moment inherently “staged”. All in all, these  conscious actions that we associate with photographing actually make capturing true moments, the way they are really experienced, impossible. Only a wearable, automatic camera like the Narrative Clip can capture and share moments the way they happened.

(2) How are you different from your competitors?

Other cameras are either not wearable or not automatic. Action cameras are great for capturing action sports, but not really wearable in the sense that you could wear them on your wedding suit or weekend jacket. Other more wearable cameras have taken the approach to, while being wearable, still require interaction from the wearer. Lastly, only Narrative offers an extensive image analysis software with the camera, which helps you find the best images based on Narrative’s algorithm’s score on photo quality.

(3) Why will you succeed (and what is your single most important ingredient for success)?

Narrative is in the intersection of a number of mega trends. Social media has made content creation easier over time: blog platforms let you publish yourself by just writing your text and submit it to the platform, Twitter let you express yourself in just an SMS's length of text, Instagram is photo sharing with the press of a button. Narrative takes this further by reducing even the press of the button, but letting users constantly and effortlessly capture their moments for sharing.

Photography is a mega trend in itself. There are over 2 billion photos uploaded to the Internet everyday and people take more photos than ever. Still we suffer from a convenient way to organize them. Where most other popular content – text, video, music – have found their digital organization in blogs, YouTube and Spotify, our personal photos are still stuck in overfull hard drive folders or cloud services with terrible user experiences. Narrative’s software – its back-end image analysis and front-end apps – can possibly help solve this problem.

The third mega trend that Narrative is a part of and utilizing is of course wearable technology. Having started out early, back in 2012, we have already had time to build our second generation wearable camera, applying findings from user feedback on beta and first versions. Wearables will transform the way we interact with technology in the same way Internet and smartphones have and we believe Narrative has a strong position to be a part in shaping this future.

(4) What makes you unique (and what do you enjoy most outside of building your business)?

Narrative is unique in that we offer all three components required to effortlessly capture and share your moments: the hardware (the wearable camera), the backend (the image analysis) and the front end (the apps for Android, iOS and web). Other suppliers might offer one or at most two of the three, but without all three of them you will have a completely different experience.

(5) What digital media trend is most interesting to you (and what is the least)?

Outside the popularization of photography and the emergence of wearable technology, I would say that the merge of the digital world with the physical world is what I find most fascinating right now. So much we take for granted in their respective sphere – infinite storage and transport capabilities in the digital world and right to ownership of goods and personal space in the physical world for example – are challenged when they collide. It also opens for new businesses in a way I don’t think we’ve seen the beginning of yet. Uber and AirBnB are of course the two most notable examples, but I’m sure will se many many more very soon.

The least interesting? Cable-cutting. I can consume whatever media I want whenever I want, except for TV shows. It should just work by now. Fix this would ya?

VR - The Engine of Empathy ... and REAL Social Change

My visit to Silicon Valley last week -- and trip's highlight virtual reality (VR) tour-de-force by pioneering startup Jaunt (here is my blog post about that "must know" company and visit) -- has me obsessed with the possibilities of VR.  Yes, media and entertainment.  Yes, gaming and adventure.  Those are obvious and frequently discussed.

But, perhaps most compelling is VR's power to transport you to anywhere in the world -- and to enable (empower) you to really feel like what it is to be there.  To experience.

And, it is that VR teleportation machine that enables the tantalizing prospect of creating mass empathy and real social impact.  In other words, VR has the potential to serve as the engine for empathy and mass mobilization.

Case in point -- "Clouds Over Sidra" -- the United Nation's first foray into VR filmmaking for social good.  This "experience" (because it is much more than a film) places you directly in the middle of a Syrian refugee camp -- through which you are guided by a 12-year old refugee girl named Sidra.  As you experience a day in her life, no longer is being a refugee in some far away land merely some abstract concept.  Now, via VR, while Sidra's suffering is not real to you, it does come to life in your mind in a way that is.

And, once it comes to life and becomes more tangible ... virtually ... real emotions take hold ... real empathy! ... with the power and promise of real action to follow.  Real change.  Real impact to better the lives of Sidra and others around the world.

THAT is the potential here people.

THAT is just part of the promise of VR.

But, oh what promise that is in these early heady days ...

Jaunt, VR & The Future of Media & Entertainment

Whirlwind trip to the Bay Area this week -- highlighted by my jaunt down from SF to Silicon Valley a few hours ago to visit VR company Jaunt.  I knew I would be impressed, because my friend and visionary Steven Rahman at Samsung told me about this "must see" company.  But, "impressed" is not the right word or impact.  More like "blown away," as in mind-blowing experience.

CEO Jens Christensen immediately sat me down in the Jaunt demo studio (pictured here to the left) -- and I sat through and experienced 4 different demos.  First demo -- on the stage at a recent Paul McCartney concert (yes, these will sell big time).  Second demo --extreme climbing and parachuting off cliffs in Yosemite and other extreme lands.  Third demo -- immersed as a character in a horror movie (complete with a blanket thrown over my head by one of the demons that made my entire body flinch).  And, fourth demo -- a CGI EDM-driven segment.

How do I describe the impact?

I smiled throughout -- no, grinned throughout -- no, could barely contain myself.

I have been in the media and entertainment world for 25 years and have seen many many things and many many demos.  But, today's demo was unlike any other.  This certainly is the future of media and entertainment.  It ain't no gimmick.  And, VR ain't just for gaming anymore.  Music, travel, story-telling ... all are open to Jaunt ... and, therefore, to you.  The world is now open and fully accessible.  That's why blue chip investors have lined up to invest in this company.  And, that's why you soon will be investing in Jaunt content.

Here's another mind-blowing thing -- how fast this all happened.  Jens told me this:

-- he had previously built and sold several other companies
-- after his last sale, he joined VC firm Redpoint as an EIR (entrepreneur-in-residence)
-- that's where he tried on his first Oculus -- which he actually purchased through Craigslist
-- and that's when he had his epiphany -- whereas Oculus was then game-focused, Jens immediately focused on media and entertainment -- that is the fundamental difference
-- and, within just a few months (since Jens is a technical magician), he and his partner at Redpoint created their first prototype (pictured in the picture above to the right) ... and, now, they are on the second prototype (which is pictured below to the right).

Get this -- this all happened in 2 years!

Jaunt's content is already available -- at least most of it is free for now.

But, with the inevitable meteoric rise of VR, that "free" won't last long -- and Jaunt's business model is to monetize that content.

I have talked about VR for a long time, and I have written about VR for months.  But, experiencing Jaunt today changed everything for me.

VR for media and entertainment is not just the future.  It is absolutely here and now ... with compelling, extremely compelling, content produced by Jaunt ....

MovieLaLa - Exclusive Q&A UPDATE with CEO Dana Loberg - 18 Months Later ...

MovieLaLa -- a community for movie lovers (and the marketing to, and data aggregation about, them) -- is a company I have tracked for nearly two years. In fact, our Manatt Venture Fund is an investor. And, MovieLaLa's founder/CEO Dana Loberg is one of my favorites. Talented, passionate, tenacious. I previously featured Dana and MovieLaLa in my exclusive continuing "5 Questions With" series 18 months ago. So, I decided to check back in with her for an update on how things have changed and progressed since then.  

Here are my new 5 questions to that end -- and Dana's unedited answers -- exclusively for you. For you startup entrepreneurs, pay particular attention to Dana's refreshingly candid answers to question (4) below -- i.e., how she manages balance in her life and the overall stress and inevitable highs/lows that come with having chosen the entrepreneurial life she/you have chosen.

(1) How has the world changed? (meaning, media and entertainment world)?

When my partner and I first started MovieLaLa in 2013, everyone was still talking about Netflix -- the reigning disruptor to the entertainment world. Fast forward two years, and we now have several new competitors in the space, including Amazon and Hulu, who are coming up with their own original content, just like Netflix. There are also a few up-and-coming studios that are maturing, like Legendary, Skydance and STX who are focused on digital and technology from the ground up, and are finding innovative new ways for distribution and marketing.

Content continues to be the most important aspect to entertainment as it’s the driving force of people’s engagement and time spent on the internet, smartphones, etc. Companies are starting to build content at different lengths to keep up with the mobile era in which we live. Studios are really making an effort to try new opportunities when it comes to marketing. Some are excited to work with a startup like ours, who’s solely focused on movies and movie marketing. The more we work with their teams, the more we build and refine the tools they need and want in the long term.

Overall, it’s been a exciting experience for both parties. My engineers get super psyched to work on Hollywood films and see it all come to life in front of them. Who wouldn’t?!

(2) How have your opportunities changed?

The opportunities in mobile continue to grow. When it comes to building awareness and generating interest, mobile is still the driving force. As far as new technologies and backend development, things continue to change rapidly.

For example, we saw how Meerkat and Periscope broke loose this year and really changed the paradigm in a major way. I look at them as YouTube for mobile. For me, the live video streaming feature, the scheduling of the stream, and global access to video are really compelling. When you think about it, these platforms could have a major impact on Hollywood and help film studios extend their marketing efforts into the “production” phase of their films. Can you imagine gathering fans as early as “in production” -- then and carrying them through to buying tickets and DVD/streaming?

Also, I really love the feeling of voyeurism these two apps create and the accessibility and interaction they facilitate with whomever is filming or being filmed. The pace at which we are living, and the new creative ways technology leaders are building and releasing new tools, are constantly creating opportunities for all markets.

(3) How has your company changed?

MovieLaLa has made a lot of traction with movie fans via our new app, as well as with key players in Hollywood. Since MovieLaLa is a niche company working 100% on movies and movie marketing, we’re able to come up with specific solutions that only the movie franchises and film distributors are grappling with. For instance, we’ve been able to provide the following:

• Better engagement and share rate than existing video tools
• Seamless transitions from pre-theatrical, in theatres, and post theatrical actions
• Content updates and notification reminders for movie fans

I think being able to specialize in a vertical, as a startup, and staying focused has really helped us see success; we’ve gained access, trust and growth in both our user base and with our studio partners.  

We can now implement and really showcase new ways to streamline studios’ marketing, help them build stronger engagement, achieve virality with their content and build a relationship with the movie fans who are interested in their releases. Through our partnerships with the studios, we are always finding new opportunities to improve and simplify their efforts through technology that we’re able to build on the fly. And optimizing everything for mobile consumption is a big part of where we’re playing. Beyond that, we always have the movie fan in mind when it comes to convenience and seamlessness.

And among the highest compliments: I've met a lot of people along the way at Apple, Google and Facebook who are really supportive of what we're doing. We’ve gotten interest from really talented engineers from all over the world who want to join our company. When you start getting inbound requests from people who really want to work with you, you realize that you've created something exciting that people want to be part of.

(4) How have you changed? 

Ha. I think you’d have to ask my investors and parents for the real answer to this one -- but I’d say I’ve probably changed quite a bit. I’ve taken up meditation and yoga to stay balanced. I’ve also been more selective with whom and where I spend my time. Time has become much more valuable to me throughout this process.  

As a female founder and entrepreneur, I feel like I’ve accomplished a lot over the past two years. The majority of the goals I’ve put in place while building MovieLaLa I’ve succeeded in completing and I’ve become more confident in direction and goals of our company. Personally I’ve learned a lot of lessons, the most important one: managing the extreme highs and lows of a startup. Everything passes and comes and goes quickly, so keeping a level head about your business and emotions is critical.

(5) What's next for you and MovieLaLa?

We’re continuing to work with studios, building and extending partnerships with mature mobile companies and building a community around MovieLaLa. We’re working on some really cool new features that are compatible with what movie fans want, which all center around “bringing Hollywood to movie fans.” There are events like ComicCon that can really get our company in front of hyper-fans and spread awareness towards MovieLaLa. We have a couple new features in development that are complimentary to both studios and movie fans. That’s all in the works for now.

Overall, I’m very proud of the MovieLaLa technical team and my cofounder who’ve really dedicated themselves to building a beautifully designed movie app. We’re all so happy with what we’ve accomplished as a team in the past year and I’m happy with where it's at, where things are going for our company and what’s ahead for us.

Spotify, YouTube Killer? Why? And Does It Have a Chance?

Rumors in the digital media world are almost always true.  And, this one is no exception -- Spotify has officially announced that it too is joining the OTT video game -- focusing on short form videos with partners who include ESPN, Vice, NBC and Comedy Central.

Why is Spotify doing this?  And, does it have a chance?

Here are my "quick takes" on those questions:

(1) THE WHY?

Spotify needs to diversify its one-dimensional and thus far unprofitable business model -- pure and simple.  Yes, everyone uses Spotify around the world -- but that doesn't mean that a stand-alone music streaming business is long-term sustainable (at a minimum, the jury is still out -- with Pandora being another prime data point) (I recently wrote about this "Achilles Heel" in my separate post about Apple v. Netflix).  So, the "great hope" is that Spotify can take a significant portion of its reported 15 million paying subs (at $10/month) into the wonderful world of video and monetize that subset effectively and incrementally -- which is the "great hope" for an increasing array of behemoths who look to unseat the reigning champ, YouTube.  These include Netflix and Facebook (most significantly), Snapchat (increasingly interesting), Twitter/Vine, Amazon, Hulu, and Vessel (all of whom ultimately seek to get to the same place -- offering the widest breadth of compelling video content -- both short and long form).

(2) DOES SPOTIFY HAVE A CHANCE?

Interesting question.  Spotify's DNA is music (although it claims to be a tech company first and foremost).  And, Spotify's identity in our minds is music.  It is somewhat unnatural for us to shift that perception into Spotify becoming a broader full-fledged media company.  But, that certainly is not impossible -- and I personally applaud the effort -- because, as discussed above, Spotify must expand its business model to be long-term stand-alone viable.

So far, it isn't exactly clear how Spotify intends to monetize its move into video.  Odds are that it will ultimately offer a "freemium" model akin to its current music service -- with ad-supported video upselling to a paid subscription model for ad-free (and potentially more extensive video offerings only available to paid subs).  And, you can also bet that Spotify will offer both a la carte and bundled subscription packages -- i.e., one higher monthly price for both Spotify music and video, and separate lower-priced monthly fees for music or video only.

Then there is the issue of video monetization that all OTT services struggle with.  Thus far, stand-alone video services (both on the OTT and MCN side of the house) -- with the exception of YouTube and Netflix perhaps -- have been profit-challenged (just like their stand-alone music brethren).  BUT, we are still in the early innings of this overall fundamental media/video transformation fueled by millennial-driven mobile consumption, so we are in business model experimentation mode.  And, you gotta try.  Otherwise, you may be just plain "out" of the game in the long-run.

That's what Spotify is doing.  And, it certainly has a massive global audience that has demonstrated that it is willing to pay.  So, I applaud the effort.

(NOTE -- video creators, rejoice! -- more significant competition for your compelling work in this New Golden Age of Content).

Scenes From Wearable World Congress 2015 -- In SF, Right Now

Wearables.  You hear about about them.  You read about them.  You may even buy them.  But do you really know them?

That's precisely the point of the first-ever Wearable World Congress taking place right now in San Francisco.  I am here with several others from Manatt Digital Media to immerse myself even more deeply in the immersive digital world of wearables -- a broad category that covers health, media, fashion, gaming ... and just about anything you can think of.  And, let me tell you this -- it's about much more than just watches and other wearables on your wrists.  Worth attending.  Glad I am here.

Here are a couple images of Day 1 for those of you who didn't make this one.  The first (above) is of co-founders Redg Snodgrass and Kyle Ellicott (the two blokes to the right) with SF radio personality and creative force Hooman Khalili in the foreground (serving as the human selfie stick), joined by yours truly; and the second is of a panel discussion on the stage of The Palace of Fine Arts -- a beautiful venue on this beautiful day that started with my canceled flight (and ended with an early evening run along the Embarcadero (the third picture)).

Manatt Digital Media's May Newsletter Is Out - Evolution of the Digital Economy

Click Here to View on Mobile Phone or Web

Manatt, Phelps & Phillips, LLP May 13, 2015 Manatt Digital Media – May Newsletter: The Growth and Evolution of the Digital Economy The Rise of the Global Digital Content Market—Esprit de Corps at MIP Digital Fronts MCNs No More, “MPN” Please! (or, What’s in a “P”?) Digital Influencers, Millennials and the New Rules of Engagement 5 Questions with New Form Digital SVP JC Cangilla—Exclusive Q&A MDM Spotlight Profile Social media, livestreaming, feature films, original programming, virtual reality—these are all areas new to the old world of YouTube, and areas into which digital-first media companies and influencers are quickly expanding into as they evolve their business and content models. In this newsletter, we take you behind the scenes of this evolution and introduce some of the players who are driving change. The Rise of the Global Digital Content Market—Esprit de Corps at MIP Digital Fronts By Eunice Shin Warm weather with a gentle breeze on the French Riviera is pretty fantastic. Add to that a wave of excitement in seeing the growth and potential of the global digital market—and there you have an incredible MIP Digital Front event. Read more MCNs No More, “MPN” Please! (or, What’s in a “P”?) By Peter Csathy As many of you know, we write regularly about MCNs (multi-channel networks). But, just in the past few months—reflecting how fast things are moving in this space—the relevant lexicon has changed. Read more Digital Influencers, Millennials and the New Rules of Engagement By Mary Ermitanio Digital influencers—popular personalities on YouTube, Twitter, Vine, Instagram and other social platforms—are increasingly attracting a large share of the consumer attention pie and are transforming the rules of engagement with Millennials. A survey conducted for Variety last year concluded that YouTube stars were more influential than mainstream celebs among U.S. teens. Read more 5 Questions with New Form Digital SVP JC Cangilla—Exclusive Q&A By Peter Csathy New Form Digital, a digital-first studio, was launched with great fanfare almost exactly one year ago by Hollywood legends Ron Howard and Bryan Grazer, who joined forces with Discovery Communications. I recently spent some time with SVP JC Cangilla who runs overall operations, among his many other tasks. Cangilla previously worked as a senior executive in video at Yahoo! and has been a digital dealmaker for years. In a digital video world still dominated by low production values and large doses of serendipity (not necessarily bad traits, by the way), New Form Digital’s approach is very different and, well, a bit more “traditional”—focused on high production values and scripted story-telling—but with digital, mobile and Millennials top of mind. Read more MDM Spotlight Profile MDM’s multi-disciplinary team of business consultants, lawyers and venture capitalists provides a unique perspective in addressing the challenges and opportunities our clients face. Eunice Shin leads MDM’s consulting team and advises media, technology and emerging growth companies on business strategy, organizational priorities and business development.  Read more Contact Us:  T. Hale Boggs Chairman Email 310.312.4269 Peter Csathy CEO Email 310.231.5445 Eunice Shin Director  Email 310.231.5494 Mary Ermitanio Senior Analyst Email 310.312.4170 Practice Area Links Manatt Digital Media Team

Verizon/AOL - 5 Reasons Justifying the $4.4B Mega-Deal

Verizon -- You've Got Mail! Massive breaking media news today -- Verizon has agreed to buy AOL for $4.4 billion cash.

Remember back in 2000 when AOL bought Time Warner for $162 billion?

My how fortunes have changed over the course of those 15 years. AOL, the previous behemoth, lost its way along the way and held on too long to its dial-up bread and butter -- and ultimately failed to capitalize on its massive distribution on the content side.

Verizon hopes to change that. And, it might just be able to do that.

Here Are 5 Reasons Why:

(1) With AOL, Verizon becomes almost Comcast/NBCUniversal-like -- vertically-integrated, with a massive distribution platform to pipe heaps of content;

(2) Even more, Verizon's mobile distribution platform is the one that matters most in these transformed media times. Mobile is no longer the "second screen" -- it is absolutely the first screen (absolutely) with the millennials who matter most to marketers.  And, don't forget, Verizon plans to roll-out its mobile-focused OTT video service soon, very soon -- so it needs to feed "the beast" with compelling content.  Make no mistake, mobile is absolutely driving this deal; 

(3) Speaking of marketers, AOL is still a powerful force. Its sales force is proven -- and, in Verizon, it now has a massive new advertising platform to sell (and, again, for the young eyeballs that matter most).  Let's also not forget that AOL has invested significantly in ad-tech over the years, including Vidible and Adap.tv;

(4) Verizon needed to do something significant to counter AT&T's increasingly bold media moves, which include its mobile-focused $500+ million Otter Media joint venture with The Chernin Group. This is that significant move -- although AOL's success in the generally shorter-form mobile-driven video space is unproven (whereas AT&T's Otter Media J.V. owns leading mobile and millennial-focused multi-channel network (MCN) Fullscreen which already has a massive audience with billions of monthly views); and

(5) Verizon can now also use its heft via its FiOS network to supercharge its in-home OTT media ambitions with existing and increasingly well-funded video content from AOL. Netflix "Killer"? Maybe not so drastic, but certainly FiOS just got a lot more interesting.

Fascinating development. Bold. That's precisely the kind of strategic mega-moves that these times deserve. At first blush, my "blink" reaction is that I like it.

Media Execs - 5 Reasons To ACT Despite No Proven ROI (with Mobile-First Video)

Media executives, this one's for you.  I meet with many of you on an ongoing basis.  Some of you "get" it (i.e., that we are in the midst of an era of fundamental digital/mobile-driven media and entertainment transformation) -- but many others still don't (or simply won't even try).  Those in denial -- those who choose to stick their heads in the sand and ignore the clear data (and obvious reality) of our brave new mobile-driven millennial world of media -- consistently use the same justification for their failure to take action.  And, here it is -- "Peter, we need to know that any action we take is ROI positive and proven."  Here's a corollary to that -- "Peter, we are judged and compensated on making our numbers now."  And here's another one that flows from the first two -- "Peter, no one is making any real money in the digital, mobile-first game right now, and all we need is one hit movie.  Then we are fine.  Just fine.  We are still a hits-driven business.  We can sell that."

But, here's the thing -- while that may sound logical to media traditionalists (and is understandable to a certain extent given the human incentives involved) -- it is divorced from the very non-traditional forces at work today and is a luxury that you simply can't afford.  This is no time for extensive spreadsheets created by teams of internal B-school strategists manufacturing numbers from outdated assumptions.  We can all make up numbers to justify our actions/in-actions.  These are new times that demand real action, real innovation, real investment right now.

HERE ARE 5 REASONS why having no ROI proof doesn't mean you shouldn't act:

(1) MOBILE AS THE FIRST SCREEN IS THE NEW REALITY!  Yes, the data proves it -- and, your own personal experience proves it!  Look around you.  The kids -- those who matter to the big brands and marketers -- exist on their mobile devices.  I have two kids -- 15 and 12 -- and I live it.  Don't ignore the obvious.  Trust your instincts.  If that's where the market is, that's absolutely where you must be, plain and simple.  Don't have a proven business model or established ROI story?  Join the club.  Nor do your competitors.  But, they recognize that they must "play" where the game is today -- and is going tomorrow at an even more accelerated pace.  And, that game is mobile.  

(2) YOUR COMPETITORS ALREADY HAVE ACCEPTED THIS REALITY.  They have already internalized it.  That means they are already ahead of you.  Don't let them extend that lead.  Jump into the game.  And, don't go quietly into that good night.  This is a time for bold moves.  Disney's acquisition of Maker Studios is the poster child for that kind of bold move.  I continue to applaud it.  Just because you can't see its ROI positivity today, doesn't mean that it isn't there.  It is.  And, it will reveal itself over time.  The next Star Wars alone may single-handedly do the trick.

(3) IT'S EXPERIMENTATION TIME.  Business models and user experiences are unproven -- and are being worked out as we speak.  In any new period of disruption, business models struggle to find a new point of equilibrium -- which is frequently at a higher level than the original one (more on that in my movie/television example below).  That struggle is happening now.  And, only those who act -- and boldly experiment - will lead and profit (rather than follow and potentially lose ... big time).

(4) WE'VE SEEN THIS MOVIE BEFORE.  Literally.  First, we had the movies (ruled the day 100 years ago).  Then, 50 years later, enter the world of television.  Doomsayers predicted the end of movies.  But, guess what?  Both movies and television thrived -- and movies reached an entirely new level.  Why?  Because they represented fundamentally different experiences -- different modes of content consumption.  And -- importantly -- television itself was harnessed to drive more movie consumption via marketing.  Movies and television entered into a symbiotic relationship, from which both profited ... massively.  So, here we are about 50 years later once again -- with the smallest of those three screens now mainstreaming new modes of video "packaging" and consumption.  Faced with this reality, why not live in a world -- and mindset -- where this transformation is viewed as being a positive rather than a negative?  Harness the power of mobile to monetize more effectively -- and holistically -- across all screens.  Treat digital-first, mobile-driven video content (and the personalities behind them) as opportunities, not threats.

(5) WE'VE ALSO SEEN THE "DEER IN HEADLIGHTS" MINDSET DOOM ONCE-GREAT COMPANIES BEFORE.  Other massive players -- who once proudly wore the hat of being market leaders and innovators -- also failed to act.  They froze amidst new technological forces that enveloped them -- and banked on the past (and their existing then-lucrative business models) -- to justify their own in-action.  Blockbuster Video anyone?  They could have owned it!  But, where are they now?  Certainly not in your neighborhood ... or in any 'hood period.  Kodak?  Another cautionary tale of rationalizing a failure to act in the name of ROI -- and another great brand that has left our lexicon.  Just think about all of those jobs ....

LESSON -- Take action.  Make bold moves.  Hire leaders with vision and experience in both the content and technology worlds.  Make sure they live and breathe media and technology and live it, authentically and passionately.  Make sure they know how to partner, since this is no era of going it alone.  Trust them and their instincts (but, yes, use evermore sophisticated new technologies to measure performance ... patiently).  Compensate/incentivize them to invest in the future, not just the past.

And don't look back ... because that media past ain't coming back.  As I said in a recent Los Angeles Times piece, "Once technology is developed, you can't rein it in."

Harness it instead!