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The NFL, Google TV, and DirecTV’s Death Grip on the Sunday Ticket

If you’ve spent any time with me in person or paying attention to my tweetstream at all (especially on Sundays), you know about my love affair with football, the NFL and the Baltimore Ravens specifically.

I’ve gone nearly 11 years and have been at or watched every Ravens game in that time. I used to watch these games at my home in Baltimore when I was in-market, but then I moved to DC. Oddly (though I do understand the NFL marketing rules), being 45 minutes away put me “out of market” and into Redskins country. Acknowledged.

It began my weekly Sunday tradition of going to local sports bars to watch the game every Sunday. When I was in Virginia, that was the very awesome Crystal City Sports Pub (ask for John, tell him I sent you and order a cup of coffee… watch for his reaction :-p). When I moved back to Maryland, I went to one of several on Sundays.

Now that I’m in Austin, I’m fortunate to find The Tavern which serves as the Ravens Nest in Austin. 50 or so fans, most of whom have roots in Baltimore, show up every week to cheer on our “Death on Wings”.

But here’s the problem. I have Time Warner Cable. I can’t get non-nationally televised games at home. The only way I could would be to switch to DirecTV and pay several hundred dollars for the NFL Sunday Ticket. This is a problem for someone who doesn’t watch much TV anyway, and the TV shows I do watch, I catch on Hulu or TV.com. Sure, I enjoy ESPN SportsCenter when I need to have some noise on in the background so I can get work done, but otherwise, the TV is rarely on.

I’ve got Netflix DVDs and can stream many shows and movies instantly on Netflix to my XBOX 360. With my (free for me) 40″ HDTV, I can stream MLB.tv games, or if I chose, NHL GameCenter games from my laptop direct to my television. I can do the same with NBA Leaguepass (though I won’t because I hate the NBA).

The NFL really offers no option to U.S. customers except via NBC’s live streaming of Sunday Night Football. (Though they did offer Preseason streaming games online – see the picture above).

There is a lot of money tied up in contracts for the transmission and coverage of NFL games. I realize it. But there needs to be a change. Consumers would be thrilled to subscribe to an NFL.tv-style service that would allow them to access their favorite sport online. It could be setup in a variety of ways. The NFL could charge a flat fee of $160 for access to a single team feed with a higher-priced “all access pass” – perhaps $300. They could also charge for a pay-per-view format of $10/game where, if I’m compelled by the Colts-Patriots game, I could purchase a single game pass.

The money will continue to be with DirecTV and I’m not suggesting that their contract should be killed in favor of an all-streaming model. No, in fact, the real money for the NFL Sunday Ticket comes from bars that are paying a premium package to offer all the NFL-licensed content on 50+ TVs. That money will still be there. You could easily restrict distribution and force bars to buy from DirecTV. Money in the bank.

But for consumers, especially those who are fans of teams outside of their market, giving them the opportunity to invest in the NFL, expand distribution, embrace the technology available in 2010, having a streaming option would be a huge WIN.

In fact, I’m willing to bet on a net 10% increase in viewership/subscribers based on this model. At least.

Google TV was just announced the other day. We don’t know much about it yet, but we do know that networks are going to have their own portals. This seems like a great possible partnership for the NFL and Google!

The only question that remains, then, is if the NFL has enough balls to make the big move? I think they need to, lest piracy and viewership decline.

Am I crazy?

Photo by Joel Price

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Everything I Needed to Know About Entrepreneurship, I learned from Star Wars

Star Wars. The original Star Wars. Perhaps those movies were defining films of our time. Though the first title (aptly numbered Star Wars IV) was filmed in the late 1970s, it continues to define movie nerddom today. Of course, Star Wars has seen somewhat of a renaissance due to the licensing of the intellectual property for the creation of video games like LEGO™ Star Wars and the continual memeage (is that a word?) of Yoda and Darth Vader quotes.

Nonetheless, it, like any good story, is successful in no small part due to the parallels in life that can be drawn. Much like how Office Space taught me about Public Relations, Star Wars taught me about entrepreneurship.

Don’t doubt me. The nuggets of wisdom are strewn throughout. In fact, I’ve developed my entire professional life around Star Wars. 1 You don’t believe me? Check this out.

Always Two There Are, a Master and an Apprentice

No matter how good you are in your professional life, there is always someone better. Yoda reminds me that, there should always be someone I look up to for learning. Sometimes this person (or people) is better than you at what you do. Other times, this person (or people) is someone who excels in a complementary way.

One of the founders of WP Engine, Jason Cohen, is one of these guys. Jason is amazingly technically (if I can keep him away from Javaisms while writing PHP code) and is the brainchild behind our infrastructure. More importantly, the dude is one of the savviest businessmen around in a completely unassuming way. He is not the guy who is going to walk into a meeting a toot his own horn like some investors or entrepreneurs do. He simply is and carries chutzpah. I have not known Jason very long but in the time I have, I’ve developed a real appreciation for him.

Likewise, Geoff Livingston has become a close friend but he’s also an incredibly focused entrepreneur. I’ve known Geoff since his early days where he was running a social media PR firm out of Alexandria, VA. Geoff and I became close but it wasn’t until I lived with him for six months in 2008-09 that I realized the drive this kid had. He frequently asked for my advice on things that were happening professionally, all of which will remain off the record in the circle of trust.

However, he has demonstrated since that he knows how to make tough decisions and go after what he believes in. Earlier this year, Geoff co-founded Zoetica to assist non-profits and socially conscious companies in their communications efforts. His drive has led him to lead in the CitizenGulf effort to raise money for oil spill cleanup in the Gulf, and to raise awareness and change in the policy world.

His dedication to his cause is something I’m watching and learning from.

Yahoooooo! You’re all clear, kid. Now let’s blow this thing and go home

Remember when the Death Star invasion was happening in Star Wars IV? The X wings were being pursued down the trough by TIE fighters. Darth Vaders fighter was on the hunt to blow Luke away. Han Solo brings his Millenium Falcon into play at the last minute and with some perfectly timed shot, knocks Vaders fighter into oblivion allowing Luke to handle his business and blow the Death Star away.

In business, the ultimate goal is always to have an exit. If it’s not, you’re holding it wrong. You don’t want to stay in a job forever. You may want to delay because you have more you want to do with the startup before selling it, but at the end of the day, if you’re putting blood, sweat and tears into a startup… you want the big pay day at the end.

This is what drives many entrepreneurs to settle for less money in exchange for more equity in the startup. Get less cash now for way more cash down the road.

Like the Death Star invasion, startup mode will have you fighting a guerrilla war at times… fighting for your survival… skirmishing to get a leg up. Once you’re clear and have done everything you can to get the company to a specific place, cash in! Blow this thing and go home. Live to fight again another day.

Aren’t you a little short for a stormtrooper?

One of the more hilariously ridiculous quotes from Star Wars IV came from Leah when Luke rescued her from being executed by the Empire.

The takeaway from this quote is pretty simple… never let anyone denigrate what you do as an entrepreneur. There will always be second guessing and there will always be other entrepreneurs who feel like thy know better and can offer advice. You know your company better than anyone else. You know your decision-making fiefdom better than anyone else. Own your offense and maintain confidence in what you do, and what you are building.

Luke, there is another Sky….walker…

The dying words of the Jedi Master Yoda. These words were the clue to Luke that he had a twin. That there could be another Jedi candidate. That there could be another Skywalker to defeat the evil Empire.

In the Lean Startup mode of starting businesses, the idea is to fail and fail fast if you’re going to fail at all. That way, if you fail and fail quickly, you can learn quickly without having put a lot of time and effort into something that will never work. Taking lessons learned, you can move on to the next startup and try again. Keep in mind that, statistically, 9 out of 10 companies fail. There is nothing wrong with failure as long as you realize there is another around the corner.

There is another Skywalker. There is another idea. There is another startup. And there may be another failure.

Arrrrrrrrrrrrrrrgh!

We don’t know specifically what Chewbacca was talking about when the Millenium Falcon’s hyper drive system failed. If there are any Wookie translators in the audience, please step to the front of the room. However, we can deduce that, based on what we know of Chewie, that he was doing tactical consulting.

In other words, it’s my opinion, that Chewie was making sure Han knew that there was a lot of problems with the Millenium Falcon and it wasn’t like they had the money to fix the bucket of bolts. Chewie was suggesting solutions for Han to fix problems quickly without spending a lot of money. I mean, can you imagine if Han had to take a VC round to fix the Falcon? What would the valuation on that sucker be anyway? I’m sure it would be a diluted round.

Instead, Chewie was helping Han realize what he needed to do to fix the problem on a budget. Maybe even in bandaid fashion. As entrepreneurs, use your creative juices to find ways to self-fund and not take stupid money just so you can extend runway. Find ways to be revenue positive now instead of later. Find ways to cheaply outsource problems so core team members can focus on the core solutions.

See?

See. Everything you need to know about entrepreneurship can be learned from Star Wars. It’s a geek favorite for a reason. I’m sure there are lessons you have learned as well. Feel free to share those.

In the meantime, may the Force be with you.

Photo by xtyler

Notes:

  1. Not really. No, really.. not really.