Why I Wish I Came Up with FunnyorDie.com
It's been a year since FunnyorDie.com (FD) has been online (http://www.funnyordie.com/). I was initially surprised to learn that Sequoia Capital - VCs who invested in Apple, Flextronic, Yahoo!, etc - would invest in a dumbed down YouTube (side note, one of their original General Managers was a Dartmouth Guy, Gordon Russell '55, who played varsity hockey, served in the Strategic Air Command, and was by all accounts the Man http://www.dartmouth.edu/~news/releases/2005/04/28g.html).
After some reflection, I realized FD was a no risk prospect. The website has one of the most simple business plans I have ever encountered:
<1> Copy YouTube. If YouTube is the WalMart of online videos (comparisons to Marshalls or Daffy's may be more appropriate since the videos therein are clearance items - the stuff that the studios will let them get away with posting), FD is a FootLocker. The brands are better (Will Ferrell, Judd Apatow) and focus (comedy) is much narrower.
<2> Have most of your content generated elsewhere. Although there are a few FD "Exclusives" a lot of the videos are old SNL videos (SNL prevents YouTube from showing their own videos), deleted scenes from Judd Apatow movies, Human Giant skits, etc.
<3> Have inexpensive content. With the exception of some of the elaborate Human Giant skits, most clips are very low tech and short. The Will Ferrell baby videos, for example.
<4> Synergistic advertising. The Ferrell-Apatow complex brings to mind Martha Stewart OmniMedia. She would advertise her magazine on her TV show, her TV show in her cook books, her cookbooks in her magazine, etc. Most of the advertisements on the FD page are for Judd Apatow movies - Judd Apatow is a special partner in the company - and Comedy Central. So finding advertisers is easy, and the advertising is actually effective. I'm a male 18-35 and when I'm checking out FD and see a trailer for a new movie, I got out and see it.
<5> Characters. I've never met Will Ferrell or the rest of the guys. They might be jerks. Assuming they're not though, it is probably more fun working with (already successful) comedians than a bunch of up-tight, stressed out entrepreneurs - after all those years in the Silicon Valley trenches, it looks like the Sequoia guys got some dessert.
After some reflection, I realized FD was a no risk prospect. The website has one of the most simple business plans I have ever encountered:
<1> Copy YouTube. If YouTube is the WalMart of online videos (comparisons to Marshalls or Daffy's may be more appropriate since the videos therein are clearance items - the stuff that the studios will let them get away with posting), FD is a FootLocker. The brands are better (Will Ferrell, Judd Apatow) and focus (comedy) is much narrower.
<2> Have most of your content generated elsewhere. Although there are a few FD "Exclusives" a lot of the videos are old SNL videos (SNL prevents YouTube from showing their own videos), deleted scenes from Judd Apatow movies, Human Giant skits, etc.
<3> Have inexpensive content. With the exception of some of the elaborate Human Giant skits, most clips are very low tech and short. The Will Ferrell baby videos, for example.
<4> Synergistic advertising. The Ferrell-Apatow complex brings to mind Martha Stewart OmniMedia. She would advertise her magazine on her TV show, her TV show in her cook books, her cookbooks in her magazine, etc. Most of the advertisements on the FD page are for Judd Apatow movies - Judd Apatow is a special partner in the company - and Comedy Central. So finding advertisers is easy, and the advertising is actually effective. I'm a male 18-35 and when I'm checking out FD and see a trailer for a new movie, I got out and see it.
<5> Characters. I've never met Will Ferrell or the rest of the guys. They might be jerks. Assuming they're not though, it is probably more fun working with (already successful) comedians than a bunch of up-tight, stressed out entrepreneurs - after all those years in the Silicon Valley trenches, it looks like the Sequoia guys got some dessert.
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