September 9, 2008 64 Comments

Growing New Crops

roots Many companies are trying to find that next new hit. The bigger or older or more successful the company, it seems, the more difficult this experience truly is. Innovation from within is something that seems to be in a drought in America (at least). It feels (and I’m not going by data here, as much as observation) as if bigger companies are struggling to come up with the next transformative thing, while newer companies are eating their shorts in the interim.

I’m thinking about media companies a great deal as I say this. Tom Steinert-Threlkeld wrote a piece about how older media organizations are having a rough time figuring out the new stuff. Here’s a quote:

The Fourth Estate hasn’t done that great a job of creating a Fifth Estate, on the Internet. Name one breakout online site or service created from within an established media company.

Beyond this, there’s a lot to absorb, and it’s worth checking out. I pulled that one quote to say that it is interesting to consider.

Consumer Reports or Consumerist? (hat tip Paul Gillin for this idea)
People or Perez Hilton?
Newsweek or the Huffington Post?

I’m not one of those “kill all the old newspapers” types. I think there’s a lot a company can do. But it’s HOW one gets there that I’m starting to wonder about.

If I Did It

I’d make an “escape pod” model, something like this:

  • Pick a small core team, half insiders, half raw new outsiders.
  • Stake them a startup seed round.
  • Let them go a few months on that.
  • No corporate oversight, only report backs. It’s spend/try/live-or-die.
  • Assess. Good? Then raise an A round or give them more corporate assets.
  • Revise revenue targets.
  • Observe. Kill, or green light.

cherries I’m starting to think this is the way to incubate ANY property in this newer media environment, and I’m curious as to your take on the above model, and/or whether you think traditional media organizations CAN put new crops into the ground without pulling up the roots to check how they are growing?

What do you think?

Photo credit, lexdenn and sage.

Related posts:

  1. What Friends and Seinfeld Teaches You About Growing Your Audience
  2. Growing Your Audience- Some Basics
  3. A Growing Unease

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  • http://www.catskillcottageseed.com Richard Reeve

    Love the seed reference (and I’m working to put a head shot in twitter profile, I listened). During lunch yesterday Paul discussed how middle management causes constipation for the next new thing. I’d put a lot of effort in creating the escape pod teams to provide full range variety of types and strengths. I’d also be upfront and make clear to the group why each was chosen, so they can see themselves in a community model, not a corporate model, giving them the best opportunity to hit the ground running.

    I think the incentive of revenue sharing, signing for a clear “lay” to use the whaling terminology, and to have all aspects of of the financial eventualities placed on the table in full view, would optimize term performance.

  • http://www.catskillcottageseed.com Richard Reeve

    Love the seed reference (and I’m working to put a head shot in twitter profile, I listened). During lunch yesterday Paul discussed how middle management causes constipation for the next new thing. I’d put a lot of effort in creating the escape pod teams to provide full range variety of types and strengths. I’d also be upfront and make clear to the group why each was chosen, so they can see themselves in a community model, not a corporate model, giving them the best opportunity to hit the ground running.

    I think the incentive of revenue sharing, signing for a clear “lay” to use the whaling terminology, and to have all aspects of of the financial eventualities placed on the table in full view, would optimize term performance.

  • http://9to5to9.debralegg.com/ Debra

    As a recent MSM evacuee, this post is spot-on from my perspective. I would have loved it if my former employer had gotten this “radical” instead of trying to force things to fit online because they fit in print. Two different media, two different audiences with different expectation, needs and demands.

    Yes, timely content is key whether it’s Old Media or New Media. But the delivery and display are dramatically different and too few in Old Media grasp that. Yes, part of it is about control. You can’t control a forum, a blog site, story comments, community calendar submissions. It’s your community, your readers/users, God love ‘em, and in this day, they want their say. Provide a platform where they can interact and they’ll stay around. Otherwise, they’ll set up their Google news alerts and stop by your site only when something grabs their attention.

  • http://9to5to9.debralegg.com/ Debra

    As a recent MSM evacuee, this post is spot-on from my perspective. I would have loved it if my former employer had gotten this “radical” instead of trying to force things to fit online because they fit in print. Two different media, two different audiences with different expectation, needs and demands.

    Yes, timely content is key whether it’s Old Media or New Media. But the delivery and display are dramatically different and too few in Old Media grasp that. Yes, part of it is about control. You can’t control a forum, a blog site, story comments, community calendar submissions. It’s your community, your readers/users, God love ‘em, and in this day, they want their say. Provide a platform where they can interact and they’ll stay around. Otherwise, they’ll set up their Google news alerts and stop by your site only when something grabs their attention.

  • http://www.scottfox.com/blog_index.html Scott Fox, E-Commerce Success

    This is a nice theory but who needs the established media companies to incubate anything?

    Entrepreneurs backed by the venture community have filled the gap just fine with plenty of promising startups.

    Yes, the media companies should be doing it themselves (instead of hoping desperately that the Internet would somehow go away…) but they also have the luxury of being fast-followers and using their deep pockets to acquire the best startups.

    My whole career has been based on (profitably) helping this transition. Media companies and startups need each other.

    Market-based evolution at work.

  • http://www.scottfox.com/blog_index.html Scott Fox, E-Commerce Success Blog

    This is a nice theory but who needs the established media companies to incubate anything?

    Entrepreneurs backed by the venture community have filled the gap just fine with plenty of promising startups.

    Yes, the media companies should be doing it themselves (instead of hoping desperately that the Internet would somehow go away…) but they also have the luxury of being fast-followers and using their deep pockets to acquire the best startups.

    My whole career has been based on (profitably) helping this transition. Media companies and startups need each other.

    Market-based evolution at work.

  • cirena

    Large corporations incubating techno upstarts isn’t a new idea…but its not always successful. In 2000, I worked for a large media conglomerate in Germany that was trying to do its own version of MyPoints, or online bonus program. We had just set everything up, selected prizes, had a marketing strategy and all, and corporate decided to buy a (at the time) successful start-up in the same field. Sometimes its easier and cheaper to buy the new technology or service than to develop it in-house.

  • cirena

    Large corporations incubating techno upstarts isn’t a new idea…but its not always successful. In 2000, I worked for a large media conglomerate in Germany that was trying to do its own version of MyPoints, or online bonus program. We had just set everything up, selected prizes, had a marketing strategy and all, and corporate decided to buy a (at the time) successful start-up in the same field. Sometimes its easier and cheaper to buy the new technology or service than to develop it in-house.

  • deny.poerhdiyanto

    Yup, I agree with you mate, but it’s a high risk step to take,
    what do you think?

  • deny.poerhdiyanto

    Yup, I agree with you mate, but it’s a high risk step to take,
    what do you think?

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