Tag Archives: Business

Multi-Level Marketing’s Feminine Mystique: A Reading List

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Women attend a Tupperware party, 1955. (Archive Photos/Getty Images)

The commodification of female friendship began in the living room, often with a small party or a conversation between neighbors. Then the goods came out: cosmetics, vitamins, jewelry. The multi-level marketing scheme was a suburban phenomenon, a way for homemakers to earn some money among friends. In the 1960s and 70s, Mary Kay, the pink-hued cosmetics company, dominated the market; in the 1980s, it was the Pampered Chef, with its kitchen tools and cookbooks; in the 2010s it’s LuLaRoe, a clothing company with coveted patterned leggings that are sold primarily through social media.

Today, multi-level marketing is booming online, with entire transactions taking place in the comments sections of Facebook posts, and aspiring entrepreneurs dispensing tips on YouTube about unloading their inventory. The products may vary, but the tactics don’t. Products are displayed, promises made. And whether a woman calls herself a consultant, a retailer, a partner, or distributor, there’s always a thinly veiled sense of desperation beneath the pitch.

Women who participate in MLM companies make a hefty up-front investment. To profit, they’ll need to recruit others to invest, and once drawn in it can be difficult to get out. Take a look at any website for an MLM company, and you’ll see sparkling promises of wealth for women. They don’t just sell products; they sell fantasies of empowerment, control, and financial freedom. Thanks to the stories below, it’s easy to understand how and why these companies target women, and what happens when they do.

1. “How a Single Mom Created a Plastic Food-Storage Empire” (Jen Doll, Mental Floss, June 2017)

It’s easy to associate Tupperware with beehive hairdos and grimy leftovers, but the company—pushed to success by social networker Brownie Wise—set the stage for today’s MLM culture. Doll tells the story of how Wise grew the company from a food storage novelty to an unstoppable national phenomenon. Why did hosting home parties as a Tupperware consultant appeal to so many women? For many, it meant a chance to work again, after the loss of employment after World War II.

Most of Wise’s Tupperware recruits fit neatly into the stereotypical role of a proper housewife. But, in reality, they surreptitiously represented a new kind of female empowerment. During World War II, many women had no choice but to enter the workforce. At its end, many of them had no choice but to leave it. Suddenly, selling Tupperware at parties allowed women to straddle both worlds. They were employed, yet they didn’t appear to challenge their husbands’ authority or the status quo. This pioneering entrepreneurial model allowed them to inhabit a workforce outside of the one the hustling salesman inhabited, and, in many cases, to do even better than he did. And that power relied specifically on a network of female friends and neighbors.

The parties weren’t just a way for women to keep occupied—it was a way they could contribute to their family’s bottom line. Most women who worked outside the home had low-paying jobs in fields like light manufacturing, retail, clerical work, and health and education. The money—committed dealers could bring in $100 or more per week—was a revelation. The opportunity for success was so great that the husbands of some Tupperware ladies left their own jobs to work with their wives.

2. “The Pink Pyramid Scheme” (Virginia Sole-Smith, Harper’s, August 2012)

For decades, Mary Kay has sold a two-sided promise to women: You can buy cosmetics for youth, but for actual power, you should sell them. When Sole-Smith became a consultant for the cosmetic brand, then nearly fifty years in business, she witnessed the revival-style tactics used consultants to recruit women. She also saw a flip side of the brand for women who found both friendship and financial peril in their new roles.

Lynne resigned from her directorship soon after, but she stayed on as a consultant. She had over $15,000 in credit card debt and a basement full of unsold products inching closer to their expiration dates. It took three more years to fully extract herself, paint over the pink wall, and get rid of the products. In 2011, her husband filed for divorce, citing as one of the reasons their “different attitudes towards money.” “He meant the whole Mary Kay thing,” Lynne said. “We just never got past it.” But it wasn’t for lack of trying. When her husband first began to talk about leaving, Lynne cleared every last Mary Kay product out of the house, selling much of it at a loss and throwing the rest in the trash. “I didn’t want him to see so much as a bottle of lotion and be reminded,” she said. “I didn’t want to be reminded either.”

But she hasn’t left Mary Kay behind entirely. The consultant who debuted with only two guests at Lynne’s party remains one of her best friends and is her son’s godmother. Lynne’s new career in real estate allows her to apply her sales knowledge, and the commission checks are at least bigger.

“Oh gosh, we were all so happy,” Lynne said as we looked at a picture of women in sequined cocktail dresses and layers of Mary Kay makeup smiling into the camera, their arms slung around one another. “I guess I didn’t know who I would be without Mary Kay to define me.”

3. “How Essential Oils Became the Cure for Our Age of Anxiety,” (Rachel Monroe, The New Yorker, October 2017)

When Monroe embroiled herself in the wild world of MLMs that sell essential oils, she found that it meant more than money for its sellers. Part of the appeal of grassroots-style selling came from consultants’ belief in their products. And when it comes to essential oils, it could feel like a matter of life or death.

Lara distributed a handout that listed various ailments and their oil treatments: eucalyptus for bronchitis, lavender for third-degree burns, cypress for mononucleosis, rosemary for respiratory syncytial virus. Diffusion “kills microorganisms in the air which helps stop the spread of sickness,” the pamphlet read. Oils “repair our bodies at a cellular level so when you are not sure which oils to use, don’t be afraid to use several oils and the body will gain a myriad of benefits.” Lara told the people in the room that doTerra had oils that were “very antiviral” and could knock out bronchitis in twenty-four hours. She shared essential-oil success stories—her migraines gone, her friend’s rheumatoid arthritis reversing, a colleague’s mother’s cancer in remission. A blond woman at the back of the room raised her hand. “Cancer?” she said, sounding both skeptical and hopeful. She explained that her sister-in-law had recently been treated for breast cancer, and was taking a pill to prevent its recurrence, but the side effects were terrible. The blond woman was hoping for a more natural solution.

“There is an oil for that,” Lara said cautiously. “There is some research. It is an option. It would not have those side effects.”

4. “The Truth Behind Rodan + Fields (And Its Takeover of Your Facebook Feed),” (Lauren Lipton, Allure, September 2015)

Women can become involved in MLMs for both friendship and financial gain. But what happens when everyone you know is involved in a sales scheme? After all, there are only so many showcases and special sales a person can attend, and for some, it might feel like an entire friend group has morphed into eager saleswomen. As Lipton learned, not everyone is thrilled about those endless invitations and events.

There’s a fine line between inspiring and annoying, and not all Rodan + Fields consultants tread it well. In fact, if you sell Rodan + Fields and think your friends might be dodging you, they probably are. “This is the suburban scourge,” says Rachael Pavlik, a Houston mother and the blogger behind rachriot.com, who says she goes out of her way to avoid anyone trying to sell her anything. “At first I would buy all of their stuff because I was kind of guilted into it….What is that? That’s not friendship.”

Pavlik is more outspoken than most. Most women we spoke to can’t bring themselves to hurt their friends’ feelings, so they roll their eyes privately, secretly blocking Rodan + Fields consultants who clutter their Facebook feeds and deftly fending off clumsy come-ons. One East Coast mother says she’s been approached multiple times by everyone from the woman who does her brows to childhood acquaintances she hasn’t seen for decades. Last year, an old high-school friend asked her to lunch — for reasons that soon became all too clear: “It wasn’t long into the conversation before I realized that this was a thinly veiled attempt to make me join her team,” she says. “She’s not trying to be friends with me; she’s trying to build her empire.”

5. “Multilevel-Marketing Companies Like LuLaRoe Are Forcing People Into Debt and Psychological Crisis” (Alden Wicker, Quartz, August 2017)

Wicker’s deep dive into the business practices of retailer LuLaRoe finds women grappling with everything from disappointment to financial disaster. On its website, LuLaRoe hypes not a company, but a movement—one that offers retailers a happy ending complete with balance, flexibility, and personal fulfillment. However, Wicker finds that the ending can happen quite differently for most consultants.

When consultants wake up to the fact they’ve been hoodwinked, many don’t warn their friends to stay away. That’s because if you speak out against any of LuLaRoe’s rules or mishaps, the community could publicly shame and harass you for being negative. “I can’t believe you call yourself a Christian,” one retailer wrote to someone trying to sound the alarm. “Where is the Jesus in you? I have to block you due to your constant-gross-delusional-uneducated opinions of LLR.” If you reveal you are struggling to make sales, you might be told to stop playing the victim, that you’re not putting in enough effort, to be more enthusiastic, and, of course, to buy more inventory.

“Success as a retailer results only from successful sales efforts, which require hard work, dedication, diligence, leadership, and perseverance,” says a LuLaRoe spokesperson. “Success will depend upon how effectively these qualities are exercised. As with any business, results will vary. In addition to the factors above, retailer success is influenced by the individual capacity, business experience, expertise, and motivation of the retailer.”

In other words, it’s not the system that’s broken — you’re just not trying hard enough.

October 16, 2017
Categories: Culture, Reading List
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On the Internet, Nobody Knows You’re a Cartoonist Hustling for Money

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(Jesse Dittmar for The Washington Post via Getty Images)

A successful media model is often a quiet one, gathering up money from the unglamorous corners of the market, cutting checks for its writers and artists in small but regular amounts. When Bob Mankoff retired from the New Yorker this year after twenty years as the Cartoon Editor, he left behind one of most successful new media models of the era: The Cartoon Bank. It was a database he founded in 1992 and ran from an apartment in Yonkers, and it helped cartoonists license their work for thousands of dollars a month. But when Condé Nast bought the Bank from Mankoff in 1997, the money began to dry up and the model began to fail.

Paste magazine recounts the rise and fall of the Cartoon Bank, which was begun by Mankoff with an $1,800 Apple computer and a $745 scanner, and built into a database with over 20,000 images from 50 cartoonists, categorized by subject: “The market was individual consumers as well as businesses; if you ran a dental association, for instance, you could easily find dental-themed cartoons for your monthly newsletter. Early customers included Bloomberg Financial Markets, which delivered a cartoon to 41,000 subscribers each morning,”

With fees ranging from $100 to $1000 for a single image, cartoonists could start to rely on checks coming in from the Bank, and some cartoonists were receiving residiuals of $30,000 to $40,000 a year. But when Condé Nast took over, things began to break and cartoonists saw a reliable income dwindle to nothing.

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September 14, 2017
Categories: Business, Culture, Editor's Pick
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An Expat by Any Other Name (Is Sometimes a Digital Nomad)

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Working from Koh Lanta, Thailand. Photo by AdrienBe.

The rise of contemporary startup culture has already reshaped cities like San Francisco and Seattle. But as more and more tech enclaves sprout around the world, we need to pay more attention to the ways tech workers change communities and landscapes in developing countries too. Jessa Crispin does just that in her Outline piece on Roam Co-Living, a startup that caters to other so-called digital nomads who wish to spend long stretches of time (and non-trivial amounts of money) in places like Bali and Costa Rica. She asks important questions about the possibility of experiencing authenticity in perfectly manicured expat bubbles — and about the fundamental power imbalance between affluent Western visitors and local communities.

More than 230 million people live in a different country from the one in which they were born, far more than at any other time in history. We come up with different words for the same experience, based on whether these people are undesirable (brown, poor, Muslim) or desirable (white, upper-middle class, European). The undesirables are migrants or refugees, the desirables are expats or cosmopolitans.

The difference is in the level of choice, whether the person is fleeing war or abject poverty, or simply boredom and Brooklyn. Western migrants are often portrayed as being desirable because they come with money, but they come with other baggage, too. If you place a large population of transient workers with a lot of disposable income in an urban area, that area will inevitably change. Businesses with English-speaking workers that cater to the affluent class, like boutiques and coffee shops and juice bars, will flourish while businesses that cater to long-term residents, like hardware stores and shoe repair shops, will be priced out and disappear as property values rise.

I asked [Roam founder and CEO Bruno] Haid if he feels responsible at all to the neighborhoods he builds his properties in. He said he wants neighborhoods to retain their authentic nature and not become homogenized. “In a place like London,” he said, “we try to have partnerships with businesses that have been around for 25, 30 years and include them in our city guides. We have Paul the pie man, whose bakery has been around for a long time, he comes in once a month and he teaches pie making classes. So we try to integrate this. We try to give people a unique local experience.”

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July 20, 2017
Categories: Editor's Pick, Featured, Nonfiction, Quotes
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Monocle: The Magazine As Boring, Lifestyle, Branding Infastructure

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Marco Verch, Flickr

After ten years of selling its slick, globalist vision of sophistication to the world’s elites, Monocle has implemented a redesign, though it’s subtle in voice and vision. At The New Republic, writer Kyle Chayka sizes up a magazine made for the world’s 1%, to see what Monocle represents, how it has shaped or been shaped by the world, and what our era of increasing nationalism holds for heavily sponsored-content that flattens nations into one continuous business and vacation opportunity.

With the recent redesign, some glimmers of political reality are beginning to enter the magazine’s editorial voice. The new page layouts are more text-heavy, with longer articles and fewer glossy photos and twee spot illustrations. The content has a new seriousness, though it remains ever-optimistic. In an interview for the March issue, the CEO of Lufthansa says he is confident that globalization “cannot be stopped or slowed down, even though some people are trying hard.” The president of Portugal, adopting the vocabulary of a start-up founder, pitches his country as “a platform between cultures, civilizations, and seas.” (“We were an empire,” he reassures readers, “but not imperialistic.”)

Monocle views the world as a single, utopian marketplace, linked by digital technology and first-class air travel, bestridden by compelling brands and their executives. Diversity is part of the vision—the magazine’s subjects are from all over the world, and its fashion models come in every skin color—but this diversity is presented, in a vaguely colonialist way, more as a cool look to buy into than a tangible social ideal. Cities and countries are written up as commodities and investment opportunities rather than real places with intractable problems that require more than a subsidy to resolve. If London is too expensive, Brûlé proposes, why not found your next business in Lisbon, or Munich, or Belgrade? If you don’t, someone else will, and you might just get priced out again.

The magazine doesn’t idealize homogeneity of race or gender norms, but rather a global sameness of taste and aspiration. Every Monocle reader, regardless of where they live or work, should want the same things and seek them out wherever they go in the world, forming an identity made up not of places or people but of desirable products: German newspapers, Thai beach festivals, Norwegian television. The end result of this sameness is that a country can pitch itself to the monied Monocle class simply by adopting its chosen signifiers, or hiring Winkreative to do it for them in a rebranding campaign. In this way, the magazine warps the real world in its own editorial image.

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June 30, 2017
Categories: Business, Culture, Nonfiction, Quotes
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How Do You Name a Not-Quite-Fat Ken Doll?

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Image courtesy of Mattel

The new lineup of Ken Dolls — seeking to represent a more multicultural, physically diverse populace (read: client base) — landed earlier this week to much fanfare. Some of the reactions were laudatory; some were less so (who can resist a man-bun joke, after all?). Caity Weaver, writing at GQ, got to follow the creative process leading to the new dolls’ release. Through her eyes, we learn how even an attempt to “celebrate diversity” often requires so much semantic and design acrobatics that it’s not very clear who the celebration is for, and who might still be excluded from it. Case in point: the tortured internal discussions at Mattel around what to call the “heavier” version of Barbie’s companion — after they’d already decided not to make him fat (“You don’t want to go too much,” as Ray Cavalluzzi, a Mattel sculptor, put it).

“With Barbie [it was] clear what was offensive with the curvier doll versus what wasn’t,” says Michelle Chidoni, a polished, deftly amiable executive from the global brand communications department. We are sitting in a capacious conference room surrounded by Barbies in fashions so cutting-edge that to describe them would be illegal. But I will reveal to the reader that a great multitude of the outfits are both fabulous and fun. “People [in focus groups] didn’t want to be called ‘plus-size.’ ‘Curvy’ was the clear winner. [But] where ‘curvy’ in the female world of fashion has become something that’s desirable and sexy and positive, the men’s fashion world has not gone there yet.”

Mattel’s constant aim when describing body types is to unearth a marketing term with “a neutral-to-positive association.” They don’t always find it on the first try. Or second. Or third. Initially, in their attempt to recapture the proud spirit of “curvy” for a male doll, the Barbie team borrowed a word from the boys’ clothing industry: “husky.” Focus-group reactions were disastrous.

“‘Husky’ just turned off every guy we talked to,” says Chidoni, shaking her head. “A lot were really traumatized by that—as a child, shopping in a husky section.” “Athletic” was rejected on the notion that athletes can have vastly different body types. “Brawny” didn’t fare much better. And so: “broad.”

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June 22, 2017
Categories: Editor's Pick, Featured, Nonfiction, Quotes
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How One Porn Mogul Made His Fortune and Ruined Everything

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Matt P., Flickr

Despite riches, power, and respect, some people are never satisfied. A poor North Carolina kid named Michael Thevis turned paperback smut and peep show machines into a million-dollar empire, and he shaped America’s porn industry right as laws started to relax around the ownership and production of sexually explicit material. When Thevis crossed into arson, threats, and murder, he brought himself down for good. At The Daily Beast, crime journalist Jeff Maysh gets access to Thevis’ diaries and letters to tell the full story of “The Scarface of Sex” for the first time.

Rival peep machine manufacturers emerged, included those run by Leon and Mike Sokolic, Art Sanders, and Bill Walters. Before now, the most Thevis had ever done to intimidate a rival was let off a stink bomb at a store in Baltimore. Not all competitors rolled over so easily. Nat Bailen, who manufactured a peep show machine for cartoons, started to sell his units to sex-shop owners who used them for porn. In 1970, a customer named Harry Mooney in Michigan asked to lease 50 machines from Thevis—an order so large he couldn’t meet it in time. Instead, Mooney bought his machines outright from Nat Bailen. As he would do so often, Thevis turned to Underhill.

“Something,” Thevis told him, “has to be done with Bailen.”

On April 26, 1970, Underhill drove from Atlanta to Louisville in his yellow station wagon, where he met a paid accomplice, Clifford “Sam” Wilson. In the dead of night, they broke into Bailen’s factory, carrying burglary tools and five-gallon containers of gasoline. They built a bonfire using his furniture and paperwork. When Wilson found some paint cans, he told Underhill, “Let’s really screw this guy,” and poured paint over the desks and carpets. There were four-foot-tall flames licking at the windows by the time the goons fled. Reeking of gasoline, Underhill found a pay phone at the Kentucky Turnpike, and called Thevis at the Central Plaza Hotel in Los Angeles.

“Veni vidi vici,” Underhill said—I came, I saw, I conquered.

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June 22, 2017
Categories: Business, Nonfiction, Quotes
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Jeff Bezos: Hero or Villain?

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Jeff Bezos
(Photo by David Ryder/Getty Images)
Jeff Bezos

When the news of Amazon’s purchase of Whole Foods broke, some wondered whether Amazon owner Jeff Bezos was flying too close to the anti-trust sun, teetering on the verge of an unfair monopoly.

Tim Wu, a Columbia Law School professor who specializes in such questions, tweeted:

Wu did not immediately respond to inquiries, but further Twitter-digging showed varied theories about the business deal:

It’s notable that the news broke alongside The New York Times’ report on Bezos’ lack of philanthropic giving. As ProPublica’s Alec MacGillis highlighted on Twitter, Bezos is the second-wealthiest person on the planet and has given away a mere .1 percent of his wealth.

After the Times questioned Bezos, he turned to Twitter with a “request for ideas.” As the Times noted, Bezos is a hero of sorts for some in journalism since he purchased The Washington Post in 2013. The Post is, of course, a for-profit business, so the purchase hardly makes him a philanthropist. But in an industry where the editorial rank-and-file are being laid off in droves, up against ownerships that devalue deep work who are intent on repeating the same failed strategies in floundering attempts to turn a craft into a viable business, the fact that the Post has been on a hiring spree and Bezos has appeared to value good, hard-won journalism is a bright spot in a bleak landscape.

And, for what it’s worth, he threw $1 million at the Reporters Committee for Freedom of the Press last month, an organization that seems increasingly vital as journalists face decades in prison for covering protests on U.S. soil.

Of course, the flipside of that is Amazon. Amazon has:

In The New Republic in 2014, Franklin Foer accused the company of “cannibalizing the economy,” insisting that it “must be stopped.”

Good deeds by Amazon include providing a space to a homeless shelter in Seattle — which could indicate this Whole Foods deal is a chance for Bezos to use his new properties for good in cities like New York and San Francisco, where homelessness is a chronic, persistent issue and housing costs have become prohibitive for many. And while the company is often criticized for lowering prices to a point that is deadly to their competitors, if Amazon’s acquisition of Whole Foods makes home delivery of healthful groceries affordable for low-income people — who tend to struggle more both with health issues and access to transportation — that would be a good thing.

For now, it’s unclear what Bezos will do with Whole Foods, though Amazon’s foray into brick-and-mortar bookstores may provide a clue.

 

June 16, 2017
Categories: Blog Post
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The Circle of Las Vegas Life Is One Never-Ending Buffet

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kennejima, Flickr

Las Vegas is a twinkling, cream-filled temple of excess where millions of pounds of food go to waste each year. At Eater, John Semley profiles the multi-generational family business that turns casino food waste into the slop that puts fattened pigs back on Vegas buffet plates. R.C. Farms is high-tech, smelly and growing. And that smoked pork shoulder sure is good.

Most importantly, the new facility’s located on landfill property 30 miles north of the city, far away from the prying eyes of tourists and hypersensitive noses of neighbors populating new suburb developments. The Combs boys seemed baffled — and slightly annoyed — by the effect that exurban sprawl had on their dad’s farm. “As the city developed, and encroachment came all around them,” Hank told me, “we would go down to city council meetings and just tell ’em: ‘We’re not moving.’ They’d go ahead and approve the developments anyhow. Right next to him. They have three schools right near there, within a mile.” (The proximity to the farm earned one of these schools the unfortunate nickname “Pigsty High.”) It’s a problem they hope to avoid with their new facility, located on landfill property, surrounded by industrial parks. “That’s the reason we’re here,” Hank noted. “You don’t see a lot of people.”

Hank estimates that the family company currently handles about 15 percent of buffet food waste in Las Vegas. The actual amount is tricky to tabulate, as the total tonnage of food that isn’t diverted to the farms isn’t calculated. “We really don’t know the true number,” Hank said. “Some of these hotels are throwing out eight tons of food a day!”

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May 18, 2017
Categories: Business, Food and Dining, Nonfiction, Quotes
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When Innovation Fails: Doing Hard Time in the Offender-Monitoring Business

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Chris Yarzab, Flickr (CC BY 2.0)

In Bloomberg Businessweek, Lauren Etter explores another problem with the privatization of law enforcement: technology. From scrambled signals and dead batteries to false violations, the electronic ankle bracelets 3M created failed to protect wearers’ civil liberties even though the process used to design them reflected the company’s way of thinking about innovation and experimentation. Unfortunately, creating monitors for human beings involves higher stakes than yellow stickies.

The sheer amount of data generated by GPS-tracking devices creates problems across the industry and in every state, but the number of alerts in Massachusetts has far exceeded the norm, experts say. Documents reviewed by Bloomberg show that in the 12 months ended in October 2015, 3M bracelets produced 612,492 violation alerts in Massachusetts—more than 50,000 per month, from about 2,800 individuals wearing the devices. Almost 40 percent of the alerts were due to a device not being able to connect to the network or the GPS not being detected. Roughly 1 percent of alerts resulted in an arrest warrant being issued. Tom Pasquarello, former director of the electronic monitoring program for Massachusetts, estimates that half those warrants were potentially based on faulty or incomplete data. That would be roughly 3,000 warrants. “There were people that were pulled from their house in the middle of the night, that lost their kids, people that lost their job,” he says.

The problem of glitchy ankle monitors became so pronounced that the Massachusetts probation department set up an after-hours office in the lobby of a Boston police station so offenders could bring in their bracelets when problems occurred or batteries died. In August 2015, Massachusetts Superior Court Judge Heidi Brieger became so frustrated with the devices that she vowed to stop sentencing anybody to them. “It is simply administratively improper to run a system in this fashion,” she said, according to a court transcript. “We don’t lose liberty in this country because somebody’s software is not working. It just isn’t right.”

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April 20, 2017
Categories: Business, Nonfiction, Quotes
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Why ESPN Still Can’t Quit Cable

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As a casual sports fan, I periodically check in with myself: Do I enjoy watching live sports enough to pay for cable?

The answer for the last few years has been: No thanks, I’ll just check out these GIFs on Twitter.

ESPN is having the exact opposite problem, as Ira Boudway and Max Chafkin explain in their latest Bloomberg Businessweek cover story. No matter how innovative or cutting-edge the sports giant makes itself, the cable money is just too lucrative, and the costs of licensing live sports are just too great, to finally cut the cord and offer itself as a standalone internet subscription service the way HBO did with HBO NOW. Boudway and Chafkin do the math:

Other media companies, most notably HBO, have confronted cord cutting by offering their programming “over the top,” which is TV-speak for “on the internet.” More than 2 million people pay $15 a month for access to the HBO Now app, but that strategy doesn’t translate to ESPN. The network’s programming costs are far greater than those of HBO—the budget for an entire season of Game of Thrones costs around $100 million, or less than what ESPN pays for the rights to air a single Monday Night Football game—and ESPN’s customers are accustomed to getting the network at no additional charge as part of their cable package. If ESPN were to charge $15 a month for a standalone streaming channel, it would need more than 43 million subscribers to match the money it collects from cable carriers. HBO has about 35 million total subscribers in the U.S., including cable and over the top.

Now, I’m obviously just one person, but I’m pretty sure I would subscribe to a service that just offers an endless loop of Ezra Edelman’s O.J.: Made in America. Just a thought for the folks over in Bristol.

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April 1, 2017
Categories: Business, Covers, Nonfiction, Quotes, Sports
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