"Passion Project", Kareem & CrowdFunding

Passion Project 
I am currently shooting a documentary in regards to the world of competitive eating, at first it started off as a “passion” project. I was very fascinated by the sport through a good friend of mind who happen to be an up and coming competitor.

The documentary, like any project had certain costs that I just absorbed because of the nature of the project, but after listening to this podcast I learned something very significant regarding having the capacity to deduct the expenses that I incur from my main salary.

In the Storey v. Commission of Internal Revenue case the court ruled that the filmmaker, Ms. Storey, “had met her burden of proving that she set out to make a profit in her filming of Smile ‘Til It Hurts.” The court also ruled that she was able to deduct her losses from the income that she earned as a lawyer.

This case will have a positive impact on the documentary film industry as a whole, because in most cases documentary films are most done out of the love of a certain topic.

Kareem's Documentary Woes
I grew up watching the Laker star Kareem Abdul-Jabbar. I even saw the documentary film that he produced that was based on his book, “On The Shoulders of Giants:My Journey Through The Harlem Renainssance.”  Though the documentary was good, I had no idea how much Kareem had to go through to get the film produced.

According to reports, he hired a film production company for $1 million to have the film due to be considered in the Sundance Film Festival.

The hired production company ends up not following through on the promises of producing a full-length film and caused Kareem not to show the film on his desired date. If I was Kareem, I would have been upset as well, seek $3 million dollars in damages.

My take away from this case is, if I am  hired to do a documentary film for a client. I should take the time to ensure my client that I am able to handle the size of the project.  Also, an area where the production dropped the ball is not getting all required liscenses to include in the film, which delayed production.

CrowdFund Your Next Film
One thing that I have learned in co-producing my first short documentary film is that it takes money to actually make it great. Sometimes, finding investors who are willing to bet on you and your film could be hard to come by. Investors automatically want to know how they are gonna make their money back.

In comes President Obama’s, “JOBS Act”, (JumpStart Our Business Startup Act). This act is geared to help up and coming start-ups get access to capital through an alternative method, called crow-sourcing.

Sites like, KickStarter or IndieGoGo have already been springing up, but this Act will give real investors an opportunity to gain equity in projects.This is good to know as I begin seeking investment to help finish the film.

Podcast References:

Passion project

http://www.entertainmentlawupdate.com/2012/05/episode-031-terminations-taxes-and-takedowns/

Kareem’s Documentary

http://www.entertainmentlawupdate.com/2010/04/entertainment-law-update-podcast-episode-10-use-the-force-big-boy-and-watch-out-for-beyonces-undies/

Crowdfunding films

http://www.entertainmentlawupdate.com/2012/04/episode-30-jobs-act-crowdfunding-limited-editions-and-more/

Industry Liabilities

Viacom International, Inc. v. YouTube, Inc.

File Date: March 2007

Case Summary
Bill Clinton signed a copyright law in 1998 with the help of congress that would help move the United States forward into the digital age. Less than a decade later, that act would supply the legal provisions that would be the basis in which YouTube and parent company Google to protect itself against the global media conglomerate, Viacom International.

The name of that act is called The Digital Millenium Copyright Act (DMCA) and had a primary intent to limit the liability of the Internet service provider’s from copyright infringement from users.

In this case, Viacom filed a $1 Billion dollar suit to YouTube for the copyright infringement of its users claiming that the video-sharing site allowed users to access over 160,000 Viacom-owned videos without permission.

Conclusion

As a personal user of YouTube, this case sets a precedent for protection of the producer or the distributor of video content. If I am a producer of content that host my videos on YouTube I am in favor of the protection of the DMCA, just in case I use copyrighted material that I may not have known about. 

I think in most cases users are not trying to violate any copyright infringements, they are just using the videos for entertainment value. However, YouTube, must be mindful on how to protect themselves of this type of infringement.

References:

https://www.eff.org/deeplinks/2012/04/viacom-v-google-decision

http://www.pbs.org/mediashift/2010/07/what-the-viacom-vs-youtube-verdict-means-for-copyright-law183.html

Emeco Industries, Inc. vs. Restoration Hardware, Inc.

File Date: October 2012

Case Summary

Emeco Industries is the home to the 68 year old Navy Chair that has been a staple in its furniture business from the very beginning. Over the decades the chair has been a symbol of that timeless American spirit of quality craftsmanship. 

One chair sells for $495 and goes through a process of 77 steps from beginning to end. Recently, Restoration Hardware, a leading luxury furnishing retailer, "knocked off" the Navy Chair with a version of their aluminum chair that is of lesser quality and sells for only $169. 

According to Emeco's press release, they filed for a preliminary injunction in US District Court, that blocks RH from,"manufacturing, marketing, advertising, and selling" their version of the iconic chair.

Conclusion

One aspect of my business will be creating physical objects that help become a staple in the brand that I am helping to build. This case is a classic example on making sure that I do due diligence in the beginning to file for all trademarks surrounding the product. I personally believe Restoration Hardware was fully aware of their version of the Navy Chair.

 In my opinion they should have went directly to Emeco to get licensing rights to the chair or just do a collaboration of a similar chair at a lower price point.

References:

Emeco's CEO, Greg Buchbinder

http://vimeo.com/52378321

http://dockets.justia.com/docket/california/candce/5:2012cv05072/259495/

Penguin Group, Inc. vs. American Buddha, Inc.

File date: January 2011

Case Summary

According to its website, American Buddha online library, "makes available selected artistic and literary works under a system of voluntary, free online lending, under the fair use exclusion from copyright liability." They make these works available to 50,000 members for free. However, Penguin Group, who is an independent book publisher based in NYC who found four of their books that were uploaded to the site without permission and filed a copyright infringement suit against them.

Conclusion

This case got a little messy, because American Buddha was banking on the copyright implications only on "printed literary works" and thought that its users would be protected the DMCA. This is a lesson in making sure when producing and publishing literary works to make sure that the same legal ramifications and protection is applied to the print and the online version of any work to ensure protection.

References

http://www.american-buddha.com/abol.toc.htm

http://www.lexology.com/library/detail.aspx?g=9b9dd03e-3ac7-4457-b7ec-8215ad39adde

The Big 3: Media, Entertainment & Marketing

American Idol host and TV/radio personality, Ryan Seacrest made headlines last week for the acquisition of 14-year old creative marketing services company, Civic Entertainment Group. CEG has been known to work with notable TV networks such as, HBO, ESPN, A&E Networks, and CNN providing services from digital campaigns to event production. (Poggi) 

When I read the headlines, I was quite impressed with the business-savvy of Mr. Seacrest. Its easy to forget his savviness when you see him as just the face of American Idol, but what he has done behind the scenes has put him in position to be a next generation media mogul. 

In an AdAge interview, he stated, "I am in the business of communicating to an audience, creating content,  and working with brands to bring them to consumers." This insight that he is sharing is breaking the ground of the convergence of media, entertainment and marketing.

The impact of this deal will send ripples through the marketing industry, because no longer can marketing professionals be focused on traditional marketing approaches. The need for these professionals to dig deeper to have the know how of seamlessly integrating media, entertainment and marketing into their campaigns will be essential.

These mediums are all becoming one function rather separate disciplines. In the future, I believe it will be hard to distinguish whether you are watching a strictly entertainment piece or  being marketed some product or service. This will be done on all forms of media as well.

The Managing Director of AdMedia Partners, Greg Smith stated,  "This transaction demonstrates once again the continued convergence of media, entertainment and marketing services." He also mentioned that, "We continue to see a broad array of non-traditional strategic and financial buyers in the space."

As the space continues to grow, this presents an opportunity for marketing professionals to begin to incorporate these inclusive strategies into their campaigns.

What are your thoughts?

• What steps will you take to begin introducing this integrated approach to your marketing?

Marketing Is No Longer Black & White

Steve Stoute has played a significant role in helping me define and clarify my career path. I always remember him being in the background as an artist manger and influencing the career of hip hop notables, such as,  Kid and Play, Nas, and now the unprecedented commercial success of his business partner Jay-Z.

I found this interview of his interview with the Harvard Business Review about his breakout book, The Tanning of America.

The general concept of the book talks about the trend and transformation of consumer tastes in young american culture, also known as millennials. He addresses the idea through the lens of a hip hop historian on why marketers can no longer market to consumers within the context of a racial box.  

He warns these marketers that use traditional demographic targeting that the mental complexion of consumers are changing. He suggests these marketers must  radically change their approach  by being aware that they are communicating to a community of "polytechnic" youth that have grown up in a mash-up cultural experience. 

Stoute states that this phenomenon is the result of the influence of the hip hop culture.

Some of the themes that he covered in the book:

•Aspiration

•Authenticity

•Risk

•Cultural Curiosity

•Tanning in culture and commerce

•Relevancy in the marketplace

•Revitalized Storytelling

•The New Code of Cool

As marketing execs in the 21 st century it is a necessary to be aware of how the cultural lines are being blurred. 

We no longer live in a black and white world.

 Although those aspects of society still exist,  with the rapid advancement of technology and access to other culture experieces by the click of button as stated in the book, a kid in the inner-city of Newark, NJ can learn how to skateboard the same time a kid of the same age learns how to skateboard in sunny California where skateboarding is a staple activity amongst the youth.

This juxtaposition will either scare up and coming marketers or can be a source of deeper research and creativity to penetrate into the mind-sets of this market.

We Want To Hear Your Thoughts:

• What ways can you begin to take steps in marketing to this tanning generation?

Interview With Darnell Davis, President of Evolution Magazine

I had the privilege of interviewing one of my good friends Darnell Davis, who is the owner and President of Evolution Magazine. Evolution Magazine is an online and quarterly limited print magazine. With the power of the Internet we are able to reach professional and savvy readers everywhere.

Darnell is positioning Evolution Magazine to be a business and industry resource for all from start-up business owners to CEOs. Evolution helps navigate and prepare for growth through in-depth content on leadership and management, technology, finance, sales and marketing, human resources and communications.

Darnell spends a lot of time negotiating in many aspects of his businesses and he took the time to explain how he handles the negotiating process.

TT: How do you separate the people from the problem when you are negotiating? 


Darnell: I endeavor to level the playing field in some fashion. This allows me not to see someone bigger or more experience than me which can often times come out as inferiority and you cannot ever begin to negotiate from that position. From there I begin to seek common goals and objective which in some form brings me up to their level if there happens to be a gap there. Once I feel we have made the experience level, I can then separate the problem from the people. We are the same at that point and our objective is to find a solution to the problem together.

TT: How do you handle positional bargaining tactics? 


Darnell: Kind of answered this one in the first one. However, I look for common strengths and weaknesses and create a situation where we are all planning from the same level. It does not matter from which position I am bargaining from, I seek to level the playing field and negotiate from a common place.

TT: Can you give me an example of how you worked toward mutual benefit when you were negotiating a deal? 


Darnell: Recently, I assisted a company in creating an affiliate marketing program. Knowing my network and my ability to speak to it effectively I position myself into a partnership with this company. What he did not know is that I had recently started a PR company and I really wanted to get his marketing dollars. Knowing my value I position Evolution Magazine and our outlets to be of great value to his company. He realized that we were actually bringing his brand up to our planning field and we began to negotiate from that point. I lowered my income expectation from the affiliate program; however, at the same time I sold him on using the PR Company to assist with his marketing efforts.

Follow Darnell on the following networks to learn more about Evolution Magazine and his business projects:

Click here to read the Evolution Magazine blog.

Click here for LinkedIn.

Celebrity Endorsement Strategy:7 Ways It Can Affect Your Bottomline

When you think about your favorite celebrity, your first thought may not be how their celebrity status can be seen as an asset on a balance sheet. However, as celebrity culture, a $50 billion dollar industry, is exploding globally companies are placing more value on the acquisition of a celebrity as a means to generate and increase revenue around a certain products and services that resonates with their target market.

The Perfect Combination
Its the perfect combination, because according to an article in AdAge.com, "brands love endorsements and consumers love celebrity." Also, the article stated that  recent studies of hundreds of endorsements have indicated that sales for some brands increased up to 20% upon commencing an endorsement deal.

However, a celebrity endorsement can easily turn into a liability when the endorser becomes problematic as in the cases with Tiger Woods or Michael Vick. The risk that marketers take is when negative behaviors surface  in the life of the endorsing celebrity, tarnishing the image of the brand and repelling customers from the brand because of the association.

The 7 Criterias To A Sound Celebrity Endorsement Strategy
So what are some of the areas that marketers must consider when looking to select a celebrity asset for an endorsement?

1. Brand must make sure that celebrity resonates with target audience so they can activate buying fans of the celebrity.

2.Brand must choose celebrity that fits in to the narrative of the brand to establish connection between the brand and educating the buyer.

3. Brand must choose a celebrity that highlights an attribute of the product or service that may not be highlighted in no other means.

4.Brand must be conscious of the celebrity's already existing personal brand as a means to build an option of reciprocity and cross promotions.

5. Brands must include celebrity in the product development phases to spur innovations.

6. Brands must choose and use celebrities that may break consumers perceived notions of the product/service offering.

7. Brands must establish  celebrity partnerships that impact the business model.

We Want To Hear Your Thoughts:

• In the age of social media, how important or unimportant is a celebrity endorsement strategy foe your brand?

Developing Your Marketing Budget In 3 Steps

Marketing and advertising is the line item on the income statement that may be the most difficult to figure out. With so many marketing methods to choose from understanding the nature of your company and who exactly your trying to reach is a good starting point for creating a budget that is most effective.

The Inc. article,"How To Build Your Marketing Budget" offers insights, even of the most experienced marketers. The first point of reference the author mentioned was figuring out first how much you expect to spend. Like I mentioned earlier this could be a battle to get the "perfect" number. 

Step 1: How Much Should I Invest In Marketing?

Some of the suggestions were to invest 1% to 10% of sales, another marketing expert weighed in and mentioned that  a company should invest as much as they can in marketing, especially in the first few years. 

Also, it is important to understand your profit margins as well.

Step 2: Traditional or Non-Traditional Marketing?

The next suggestion the author gives is to figure out how and where you should market, by either going the traditional route or look into more of the social media resources. One of the experts suggested that before you start looking at that it is important to know exactly who you are targeting and what channels of marketing would be most relevant. 

In terms making social media apart of your marketing mix, it is very important that you produce compelling content on your blogs, social networks, such as Linkedin, Facebook, Twitter, etc. This type of engaging content, will keep customers and potential customers coming back for me. 

Even though social media channels are least cost effective in comparison to traditional platforms, its good to keep in mind the time commitment necessary to make social media work.

Step 3: Know Thy Metrics

The last suggestion was to track all marketing activities. One metric that is important to know is the cost per new customer. Once you figure out this number, you will be able to work on getting that number as low as possible without affecting profit margins. 

Also, paying close attention on what marketing channel is working most effectively in your marketing mix. Once that is identified continue to tweak that channel until you are yielding the results you are looking for.

We want to hear your thoughts?

• What other things would you add to this list?