Lately in Spanish Sports TV

We have discusses in previous blogs some entrepreneurs that when opportunity approaches they do not hesitate to make a risky move and arrange new deals for future massive contracts. That has been the case of one of our favorites; Carlos Slim, the telecommunications Mexican magnate has been making fortune with Telcel. However, last week he came to an agreement to step into the broadcasting world. He acquired 30% of two Mexican teams, Pachuca and Leon. Two months previous to this move he launched an Internet based channel which distributes its content among the millions of viewers that have a contract with his own company: Cablevision.

In this new television deal the U.S. television network Telemundo has gone hand to hand with slim, agreeing to broadcast the games of the above mentioned teams and breaking apart from the deal they just lost with Chivas FC, one of the biggest teams in Mexico and, up to some months ago, their best sports asset.

These have been some interesting times for sports television. Not only Telemundo and Carlos Slim have partnered. The Miami based television station GenTV, runned by Caracol TV in Colombia has reached an agreement with CNN. They both will be merging to create a mix of news and South American programming that breaks away from the very Mexican oriented programming that Univision offers.

In mention of Univision, their newly rebranded and launched Univision Deportes Network has new leadership. Juan Carlos Rodriguez, former CEO for Televisa Deportes Network in Mexico has agreed to become the new president. He, in an interview with deadline.com, assured that the new approach would bring the Spanish conglomerate to the next level.

Last but not least it is important to remember that Al Jazeera, the Arabic broadcasting giant that has become a main competitor for the BBC in the UK and CNN in America is yet making another move. BeinSports is the sports branch of the company and hold the rights for the English Premier League, “La liga” the Spanish League and many of the qualifying international games in preparation for the world cup to be played in Brazil 2014.

This is just the tip of the iceberg but a quick check on how things are shaping up in Spanish sports television.

Hope you enjoyed it….  Join us next week.

Leaders in the Media World

In this post we keep on reviewing some of the leaders that have been able to impact the business world through their input and passion. At this point is it a personal preference to talk about someone who I personally admire, regardless of the latest scandal surrounding the now cancelled, “News of the World”

Rupert Murdoch

Was a visionary that escalated quickly in the journalism world first acquiring two of the most important newspapers in England to later on branching out to the United States with Fox news and to the cable industry through Sky News.

Besides the fortune he has, which is estimated to be worth 8.6 billion dollars, he has been able to bring a direct approach on his business model to run one of the most successful media organizations.

He once said: “ For better or worse this company is a reflection of my thinking, my character, my value”; and it is true, no other head has been at the top of News Corp. and no other person before was able to capitalize so much on creating content, charging for the advertising and managing the information to where his newspapers where the sentiment of a whole nation.

Here is a great document on Rupert Murdoch’s News Corp business model

Hamad bin Khalifa

This gentleman may not sound very familiar but just as Rupert Murdoch; he has been able to distinguish himself from the other in the television and mass media industries. Khalifa in one of the highest officials in the Qatar government and has become one of the biggest competitors for networks such as ABC, CNN and ESPN, all through the Arabic language network: Al Jazeera.

In 1996 the company started as a pilot program for the Arabic world after the closure of the BBC’s Arabic-language department. It was then that the company started banking on the opportunity of being a one of a kind provider with very deep pockets. They quickly started to branch out through the Middle East and became available through most cable and satellite companies along with a strong presence over the web.

Despite some attacks that the television network had to outstand the growth of the company has been outstanding. First with the 24/7 news networks up to eight different sports channels around the Middle East. Then becoming the unique copyright holders of the Spanish soccer league all the way to the controversial bet to with the 2022 World Cup hosting rights in Qatar.

This company, whether you personally agree with its background or not, has found the formula to stay current and attractive to many clients from many different tastes and interests, it has been able to successfully break through the cultural barriers and even establish itself in the United Stated with its brand new network Be In Sports.

Business Plan Advice

As we all look for something special, something that stands out about the product or service plan to launch it is important to look at what expert’s got to say.

In any case it will only be beneficial to our own idea if you take a closer look at what people like Mark Cuban, Carlos Slim and Steve Blank have in mind.

Steve Blank is a New Yorker, founder or E.phipany and professor at Berkley University. In his article titled “No one wins in Business Plan Competitions” he talks about the importance of moving from business plans to business models. 

Blank is certainly in disagreement with schools that encourage business plans competition which, to his perspective, only “makes the school appear relevant to their constituencies; students, donors, faculty, VC’s”. Instead he proposes the implementation of business models. This new theory is focused on staying true to the customer rather than the market. It is an on-going and ever-changing evaluation of the company performance rather than an original plan that may or may not work.

The business model proposal is based on 5 steps:

• What did you initially think your initial business model was? (Initial business model hypotheses)
• What did you build/do? (Built first product, talked to users, etc.)
• What did you learn outside the building? (Parts of our feature set/business model were wrong)
• Then what did you do? (iterated product, changed business model, etc.)
• Repeat steps 1-4

Other great examples come from people I admire personally. Not only for being great entrepreneurs but also for being outspoken and even reckless at times.

Mark Cuban, the owner of the Dallas Mavericks, creator of Magnolia Pictures, Cable TV executive and now television contributor for Shark Tank has earned his way into the most successful people in business lists.

As I design my business plan and the goals I want to achieve by creating a new service I read that is important “not to follow your passion but to follow your effort”.

In this blog post Cuban explains the importance of time as an asset for company and stressed the simple fact that doing something that you like in a repetitive manner makes you better at it. By being better at it you start working harder for more improvements and eventually you become successful.

Finally I decided to take advice from one the richest man in the world. Carlos Slim has built a 35 billion dollar value for his companies. This magnate built most of his assets through Telmex, the biggest telecommunications and cell phone companies in Mexico.

Regardless of his image, usually a strict and money driven person, he has given excellent pointers to entrepreneurs like us. In an interview with the New Yorker  Slim talks about his business perspectives but an article written by Tiffani Jones Brand for Second & Park puts things into a much concise way:

• Create a simple organizational structure with minimal hierarchies; provide personal development and in-house training for executives.
• Don’t be a big fish in a small pond. Don’t invest in non-productive assets.
• Clear objectives and the right tools will lead you through all challenges.
• Reinvest profits in the company. Money that leaves the company evaporates.
• True corporate creativity can be helpful to both business and society.
• Firm and patient optimism always yields rewards.
• Know how to work hard, and use the right tools.
• Leave with nothing. We can only do things while we are alive. Businessmen are creators of the wealth that they temporarily manage.

Sports & social media buzz

Social Media has really been shaping the way that people interact on the Internet. It is no longer only the savvy users or the programmers who are able to reach out for current. It is mother like mine who find applications such as “Edmondo” which allows you to rate your exercise performance based on audio feedback. This may not sound very impressive, I know, but remember that 5 years ago a lot of people, including for example my own mother, where completely clueless about the Internet, smart phones or applications.

One of the most significant ways that my mother and millions of users are quickly catching on with technology are social media sites. By “friending” companies that they like and following people whom they respect they opened an incredible window for business to gain popularity, make advertising money and at the same time be under real scrutiny of the client.

An example of this connection was utilized by the MLB in the All-Star game. After last year’s event when some players where tweeting while waiting their turn at bat the Baseball league understood that the buzz was a testament of how much people cared to hear about their athletes. Now a week after the big event the numbers are in. USA Today published the success of this strategy and determined that the comments on Facebook and Twitter increase up to a %257 over last year, also, this led to a %3 increase in TV ratings for Fox.  

It is now time for the next challenge and there is already huge buzz in the industry about what’s at stake for the London Olympics. Most of the athletes participating in this competition have embraced and social media as a way to connect with fans. The experts are already calling this the “first social media games” and acknowledging the potential of generating revenue through social channels.

3 keys of Digital Marketing

It is truly amazing how much the internet has changed our lives. Now we don’t have to make trips t other library of buy a map to find where we are, we don’t even have to order pizza over the phone all you need to know is learn how to search and find things.

That is the success of some of the most important companies today. Google, Yahoo Bing and Mozilla exist because people need to offer their services and sell their products and this search engines provide you with the link between them and the money.

That is precisely the idea of digital marketing; being able to place your website in the right place for the right people. This tool is immensely useful and I have found three basic principles to improve your digital marketing no matter what it is you offer.

Keep it concise.

When crating your target keyword search, meaning the key phrases you will utilize for people to find you it is important to keep it short and clean. As the experts exposed it is better to not try “to do too much with one web page in regard to keyword optimization”

Improve your organic search

While you search for anything there are two results organic and paid results. Organic are obviously free and rely on how efficiently you are able to expose your own site. It is always better to have these results as your strength while creating a website due to the fact that “inorganic” results, also called PPV, (pay per click), will be an expense for your company. This is especially important if your site is image driven the Wpromote agency has an excellent article explaining how to make the most out of the organic image searches on Google.

Be simple but avoid common words

Many companies invest a lot of money on being found on the internet. Many other have such a strong brand image that most of the online market works in their favor, for example, soda, coffee, hamburger are easily related to Coca-Cola, Starbucks and McDonalds. Being able to find words that describe your product or service with good synonyms and punctual descriptions can energize the traffic and even sales. Check out these good examples provided by Clickey.com

Successful sponsorships

Most sports, if not all, have an alliance with one or more brands to sponsor events and teams. This has been able to bring sports into the next level and help support not only the team but also the fans expectations towards the franchise.

Take the NFL teams for example. All of the arenas and stadiums around the country have a sponsored name. The “Sun Life Stadium” in Miami, the “Heinz Stadium” in Pittsburgh and the newly named “Mercedes-BenzSuperdome” in New Orleans where the car manufacturer arrange to contribute with 20 million dollars to the Saints franchise in exchange for the name in the next 10 years.

But everything from stadiums to memorabilia and jerseys are at stake for potential sponsorship agreements. In the last decade the American company Nike has gained some terrain into the soccer market around the world. They are now the main sponsor for international teams such as Holland, the United States, Portugal, Brazil and Portugal, some big names in the industry. Proof of this is the challenge that the now represents for the world sponsor leader in this discipline Adidas. A current report states that Nike has been gaining some terrain in this matter. “Sales of soccer goodswill top 4 billion euros in 2012, according to Peter Rohlmann at Germanconsulting firm PR Marketing. He estimates Adidas' market share at 38 percent,with Nike closing in quickly at 36 percent.”

Finally athletes themselves identify now with certain brands in order to gain awareness and of course some revenue. An excellent example of this marketing trend is what the Michael Jordan name brand has done for the 2012 presentation of it’s new “Jordans” the legendary snickers that have now become a cult product amongst basketball fans. For the presentation AJ2012 the marketing team gathered a group of people to create a completely customized shoe that will adjust to the fan’s desires. Three different shoes are represented by three different styles of basketball players in this case, Chris Paul from the LA Clippers, Carmelo Anthony from the NY Knicks and Dwayne Wade from the Miami Heat. The all represent one of the three kinds of shoes that AJ2012 is branding all done by an spectacular display of graphics and images worth checking out! AJ2012

On media rights

Most sporting events are strictly regulated when it comes down to media coverage. Aside from the fact that it is sometimes easy to accredit yourself for any given event, it is the use you give to that material what can get you in trouble. Actually, this article from Mashable, explains how anyone, literally anyone can be in trouble if posting, tweeting, emailing or texting copyrighted material. In this case the scenario will be the upcoming London 2012 Olympics, where not only NBC/Telemundo has the exclusive coverage of the games in America but also all of the video material for any other network has a 24 hours embargo on it.

This means that every fan attending the games should watch what they are sending to their friends? Well, in theory yes but it is impossible to restrict every single person from doing it. The media interaction will exist but all athletes participating of the games have been restricted from posting with brands or advertising material without the Olympic Committee consent. It will certainly be interesting to see how advertisers will bend the rules to get away with their athletes under the spotlight.

This reminds me of how strict and complicated coverage can be. The UEFA has set up an extensive set of rules for photos, video and even audio clips for all the Champions League. One of the most watched and demanded sporting products in the world represents on of the most complicated assignments there are because of all the policies there are to be met. Click here.

In my perspective it is a balanced deal. There is enough technology nowadays to allow a “natural” broadcast of games and championships. Those sporting moments every fan deserve to keep in their memories, whether it is a video, photo or sound. At the same time television networks, satellite companies advertising agencies and products still see the bright side ofcapitalism and collect for every big piece there is of theirs product. It won’t be easy to get away with stealing protected material and making money out of it. However, in my opiniom technology seems to have the better end of the story down the road.