Ok, that’s a somewhat misleading title, because Athletes Unlimited is a new business model for sports, and while it’s starting with softball, it’s already moving into Volleyball and will soon move into other sports. But it’s unique model is one that I think holds a lot of promise, and is one which shows how to think about real innovation, and could be a good example or inspiration for people in film/media who also need to rethink business models.
First a disclaimer – Athletes Unlimited’s co-founder is Jon Patricoff, and he and I worked together at Tribeca years ago, but I am not too biased here as we remained friendly but barely stayed in touch and I have no private insight into this business, only what’s online. He moved from film to sports, and this new venture isn’t just a new business model, but also a mix of sports and storytelling, so it will be interesting to watch regardless.
Athletes Unlimited will launch in August outside Chicago, and its first venture will be a new women’s pro softball league that eliminates managers, owners and even the fixed, city-based team format. Instead, all games are played in one city – Rosemont, IL to start – and online, and there are hints of a broadcast deal to come. Each week, four teams are put together for three games, and each team is redrafted – every week – by the MVP’s of the game, which are determined by a scoring system and player votes. The idea is that fans no longer congregate around teams based on cities, but based on the players they love. And women, pro softball players have a lot of followers online (many apparently have super high follower and engagement rates).
Every player is guaranteed a minimum income, and can earn even more based on their performance and engagement. And all players are part owners of the company. Not just for one year, but for the next 19 years – because the early adopters are taking a risk and helping to build the company. In fact, while the League was founded by two white guys (Patricoff with Jonathon Soros), they are apparently capped at 10% and the players are majority co-owners with them, so in theory, the ownership will have great gender equity and possibly diversity built into its structure. They also happened to build a business model that’s perfect for C-19 before it took place, but that definitely informs how to think about this and all business going forward.
There’s a lot more to the initiative, and you can read all about it in Sports Illustrated, or Softball America (and here), or in this recent NYT article, which is where I learned about it. But I’m most interested in the innovations that I think lend great ideas for the film/media sectors. In no particular order:
1. They’re focusing on an underserved niche, with a huge fan base. Women’s softball and volleyball are their first sports, both of which have great athletes who have built a following, but who aren’t being served well by the current system. We’ve seen this time and again in film – Tyler Perry built an empire targeting Black, Christian audiences; Fantastic Fest by serving genre fans; Dallas Sonnier (who has other issues) targeting right-wing genre fans; the list goes on and on. The point is – empires, or just tidy fan bases, can be built in a networked world by focusing on an underserved niche that is starving for content. Prime places to look today – all kinds of diverse audiences, but especially young and woke ones; LGBTQIA audiences; Southern Christian but liberal audiences; outdoor and action film enthusiasts. Better yet – you probably know an even better example that is starving for content, so pick one (or more).
2. Focusing on the Fluid Fan – In sports, the fluid fan is focused on player allegiances (over teams), is more participatory and values based, and centered on dynamic social groups. Likewise, in an online film world, we no longer need to think about audiences just on their geography – thinking just about what theaters they go to, what billboards they pass, or what local newspaper they read. This is especially true with the niche fans mentioned above. They want to be engaged, and they are very focused on the talent – here directors and cast – that make what they love. They don’t care about the “brand” that distributes them. Unless that brand is tied to that niche. That’s why I am very bullish on specialty festivals – Fantastic Fest, BlackStar, Full Frame and their like, looking into expansion coming out of this. Just like Athletes Unlimited has a base for the games – Rosemont – your fest can still have a physical location, but it should expand Nationally or even globally based on shared interests and social media. Yes, this means re-thinking how fests interact with distribution, but that’s what needs to be done. It’s also why smart filmmakers will continue to build their direct-to-fan engagement (nothing new here). But as I’ve said before, too many filmmakers are not active with their fans on social – just check out your favorite director’s online (lack of) presence. Just like the athletes here – the women softball players often have more followers than many NHL or MLB stars, and smart filmmakers should follow that lead.
3. Empowering the Players (Creative) with Ownership. Athletes Unlimited is player focused in every aspect, but especially in terms of giving them ownership stakes in the company. This is a model we need to look at more closely in all aspects of film. I already know film festivals that are exploring co-op models to collaborate and share ownership. People exploring slates or new production companies, or new festival and distribution models, should think about the value of collective creator ownership – because filmmakers who are owners are more likely to promote one another’s films. Another key aspect of this, according to the NYT article, is that players are in “the forefront of all decision making,” so they help set the direction for the league – can you imagine that happening more in film’s infrastructure decisions? Last, it’s about building stability for the players – most players interviewed spoke about how this league seems more focused on helping them build sustainable careers – something we need to focus on in film as well. As one told the NYT: ““You’re getting players in the mind-set of being their own bosses and having control over what their outcome is going to be,” (soccer star, Abby) Wambach said. “In the women’s sports world, being able to monetize yourself in all the possible ways matters. It could mean paying your mortgage.” We need more of that in film too – thinking about sustaining careers, not just one film. Note to all the DIY fans though – this is being done not by one player, but by smart thinking about a bigger system that allows for this to work at scale.
4. Data Driven – Read this about how they have built data into every section of the company. Early hires were CIO’s and CTO’s and they’re driven by data science and analytics. They get data in real time, and use it to make decisions and to empower both the players and the fans. Says Patricof: “That is the core of our development effort right now. We are working with a technology provider to develop a proprietary database that will take in the stats and in real time process that to enter into the point system that we have for Athletes Unlimited. Then that will be able to be engaged with by fans in real time through our website, our digital channels. “ In the film world, we hide the data, or don’t get it in real-time, meaning we can barely react to it. Too much is done by feel and hunch – and sure, we need creativity that isn’t just data driven, like the players need talent – but we need to focus a lot more of our collective energies on data in the film sector. And we need to use it to build more interaction with the audience as well.
5. Changing Cost Structures and Revenue Sources. Athletes Unlimited speaks in every interview about how they couldn’t rely on getting into big arenas and bringing in significant ticket revenue to survive. They’re using cheaper real-estate to play (and stream/broadcast) games, but see tickets and merch as only a small part of their revenues. They are more focused on sponsorships and digital distribution. As Patricof says: ““While other leagues will have to invest in ticket sales and ticket marketing, we are taking those resources and putting it into building a digital community and a digital storytelling presence.” (See 7 below for more on this)
Note that this means changes in both their production and distribution, really. Likewise in film, we need to shift here too. In production, that’s going to mean a lot more use of virtual production, and of course a shift in how we think about theatrical. Mind you – I am not arguing to kill theaters. But the megaplexes are the ones in trouble post-covid anyway, and we need to be looking more to the limited theatricals of Netflix, and the more regional focus that the arthouse and festival world can provide for indies. Along with pop-up cinemas, tours and other old-are-new-again ideas. In film, most festivals and theaters rely on ticket stales for the bulk of their revenues (and concessions of course). As the leaders of the AHC have been preaching for years, they need to diversify revenue. That has meant membership programs and sponsorships. But in the Post-Covid, recession/depression we’re entering, that’s going to mean more sponsorships and a bigger reliance on digital revenues to augment tickets. And this will only work at scale- sponsors want massive numbers of eyeballs – so more fests and theaters need to build collaboratives/partnerships so they can attract sponsors, and again, grow their online offerings (but again, in a way that takes into account and/or replaces distribution). Note – I know some fests have done and are doing this, but none have done it at scale and in a fashion that works best for sponsors or audiences (yet).
6. Wholesale Rebuilding Based on Digital. Athletes Unlimited is not just doing some tweaks here and there to the old model. It’s a fundamental realignment of the way sports are done, based on realities of what was happening online due to digital. It mixes the idea of the fluid fan with what was happening with fantasy sports. It builds in social media, short form content, participatory culture and other digital trends to its DNA. It is like how you would build a sport from scratch today, instead of just trying to preserve old systems that didn’t work too well in the old world. It’s actual innovation, instead of little tweaks. In the film world, we’ve been seeing a lot of shifts, but most of them have been reactive and are trying to preserve old models. Take just one example – geo-blocking. It is insane in an online world. But of course, we have to build it that way so it works with other systems – mainly distribution and the needs of SVOD. But Athletes Unlimited doesn’t exist in a vacuum, either – it had to contend with other professional leagues and their timelines. But they built an economic model that could make it work for themselves, and the players and the fans. That’s the precise kind of thinking we need in film. Not just for fests and theaters, but in all aspects – we need an economic model that enables productions to be more diverse and equitable too. I don’t yet know what that will look like, but I bet it will not come via baby steps, but might come around by wholesale changes like those suggested by Athletes Unlimited.
7. Story-Driven. Luckily for film, we’re already story-driven, but it’s worth noting that everything Athletes Unlimited is doing is built around storytelling, not just playing a sport. For them, it’s a focus on short form and social media. (Filmmakers should also note that the NYT mentions they are looking for content ideas). We’ve got stories. But I think it’s also worth thinking of this differently. For them, the story is not a film, but the game. And the game isn’t the only story they’re telling. They are posting not just short form content and social media, but also hiring comedians and posting extended interviews. In the film world, we mainly post clips and trailers, and push people to the film. A few smart fests, distributors and filmmakers think more broadly, but most people focus their “ancillary” content around the release of their film. But like Athletes Unlimted, this needs to be expanded to an ongoing, participatory dialogue, driven by story, on an ongoing basis. In general, we all need to “up our game” in this regard, and smart new business models will be built around this notion.
So if you want to rethink the business and build something that is purpose-built to empower filmmakers and audiences, while being a sustainable business, take what they’re doing – as a mind-set – and apply it to whatever you’re doing. I bet you could do worse.
Full Frame A& E Speakeasy Conversation Today
The Full Frame festival panel was rescheduled to honor Blackout Tuesday. It is now being held today, June 11:
Online Festival Strategy for Documentary Filmmakers
THURSDAY, JUNE 11 (TODAY) | 1 PM (EST) | REGISTER HERE | FREE WEBINAR
As more festivals make the move online, documentary directors are left questioning, what is the right path for their films? Join us for a discussion on emerging strategies for nonfiction filmmakers, where we’ll tackle the most pressing concerns and questions about the changing festival landscape.
Moderator: Deirdre Haj, Full Frame director
Panelists: Josh Braun, co-president of Submarine Entertainment; Ramona S. Diaz, filmmaker, CineDiaz; Brian Newman, founder of Sub-Genre (me!).
Register today and learn more about the panelists joining the discussion.
Film
Normalizing Injustice: Color Of Change releases report “On the Dangerous Misrepresentations that Define Television’s Scripted Crime Genre – (h/t to Kelly Devine who sent me this link). A Comprehensive Study of How Television’s Most Popular Genre Excludes Writers of Color, Miseducates People about the Criminal Justice System and Makes Racial Injustice Acceptable.” A great, very detailed and data-driven analysis of how scripted TV is normalizing bad police behavior and “rendering racism invisible.” This study could not come at a more perfect time – it proves what most of us already knew, but having the actual data is always one of the first steps in forcing real change. Read the report here
DOC Institute (Canada) hosts Panel on Distribution & Festivals in the TIme of C19: From the organizers: Prior to the pandemic, there seemed to be clear(er) festival and distribution strategies for documentaries. With festivals temporarily moving online and distribution strategies pivoting from theatrical to digital in the blink of an eye, the classic roll-out strategy is no longer obvious. How are festivals and virtual cinemas faring and who is watching online? How can we ensure that filmmakers’ need for a robust and meaningful launch is met? Should we hold onto our new films and ‘wait and see’ or do we launch into the digital space and start marketing watch parties? Our insightful and experienced panelists share their observations, newest strategies, and honest opinions about how to bring your film to audiences in this new reality. They have a good group of speakers. TODAY (June 11) at 4pm EST. Info and Tickets here.
Sam Mendes to call on Netflix and Amazon to share ‘Covid 19 Windfall’ with theatre sector – stating that the streaming services have a responsibility to keep the cultural ecosystem in balance, and that a system in balance is to their benefit, as the artists who create content for the streaming services often come from theatre or further refine their work in theatre.
Why you’re Going to see more animation (Thanks Pandemic!) – WSJ covers and demonstrates how new media take form due to social upheaval… question is will the next major event lead to actors being completely replaced by AI?
Michael B. Jordan challenges film industry during Black Lives Matter Protest – First Boyega and now Jordan. Major stars are adding their voice to the cause.
Sundance Launches the Inclusion Resource Map: File under awesome and creatively done – Sundance Institute launched a new, interactive tool called the Inclusion Resource Map, “—a searchable storehouse of opportunities and programs available to U.S.-based artists from underrepresented communities.” You can use the search tool here.
Vilcek Prizes for Creative Promise in Filmmaking – In 2021, the Vilcek Foundation will award three prizes of $50,000 to early-career immigrant filmmakers with the Vilcek Prizes for Creative Promise in Filmmaking. The prizes honor and support the creative contributions of foreign-born filmmakers to cinema, documentary, experimental filmmaking and animation in the United States. Producers, editors, directors, cinematographers, and screenwriters are encouraged to apply. The deadline for applications for the 2021 Vilcek Prizes for Creative Promise in Filmmaking has been extended to June 17, 2020, at 5:00 pm EDT. Full details about the Vilcek Prizes for Creative Promise and the application process may be found here.
Dear White People In Advertising – article and panel: Edward Cotton, who I only got to know recently on another Zoom panel, penned an article to the field calling for more diversity and action. In his words: “America needs to change, and the ad industry can and needs to play its part in this change, but it cannot legitimately do this without more Black Americans in its ranks and senior leadership.” This, among the overall conversation, led Rick Parkhill of BrandStorytelling to do some analysis of the brand storytelling (writ large) space and its need for action. And that led to this first panel addressing the issue. The talk is taking place on the day before this newsletter runs, but will be on their YouTube channel for viewing by the time this posts.
What’s next for Buzzfeed News? ‘We will never just be pizza and kittens’ – after some severe Covid 19 lay offs, Buzzfeed seeks its new identity. Despite brand recognition, the company has struggled to stay profitable. Their plan: attempt to toe the line between hard hitting news and ‘fun’ content.
Miscellany:
AT&T is already Breaking Net Neutrality Principles: As Public Knowledge and others have reported, AT&T is exempting its services from its data caps, among other things that bring up why we need good net neutrality rules, which have been gutted under Trump/Pai. Read about it here.
How GoogleDocs became a Tool for the Resistance – MIT Tech Review reports on the increasing use of GoogleDocs for sharing info during the protests (and in other places).
With Real life Games halted, Betting world puts action on E-Sports – NYT covers, “Even as overall wagering has declined, betting companies have been buoyed by an enduring casino truism: Gamblers find things to gamble on” and that is E-Sports, and it will keep growing.
Artificial Intelligence that mimics the brain needs sleep, just like humans – study reveals that sleep isn’t just a function based on biology, but one that is based in the structure of our nervous system, regardless of any ‘living’ matter being involved. Really fascinating stuff.
Foundations (Finally) Make Big Moves to Support Nonprofits – Well, that took awhile, but to be fair, big ideas take time to gestate. Led by the Ford Foundation – whose President, Darren Walker is one of the most brilliant ceo’s out there – a few foundations are taking on debt to increase their giving. It’s big, it’s complicated, and it’s a challenge to others to follow (the article notes that many said no way). Read about it in the NYT.