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Vogue: Defining the Culture of Fashion
In March 2013, Susan Plagemann, vice president and publisher of Vogue - widely regarded as the world's most influential fashion magazine, and publishing conglomerate Condé Nast's marquee title - is seeking answers to two questions. First, how she can best approach the intensely competitive advertising market in which some competitors in recent times have had two to three times the page growth that Vogue has had? Second, how should she utilize the growing importance of digital channels that may increase pressure on traditional revenues sources but also fuel new ecommerce partnerships and other opportunities? Can Vogue, as both the fashion industry and the magazine's readers have become so accustomed to, stay one step ahead? -
Marquee: Reinventing the Business of Nightlife
In January 2013, nightlife impresarios Jason Strauss and Noah Tepperberg are celebrating the re-opening of their famed New York City-based nightclub Marquee. While most clubs are over within their first one and a half years, Strauss and Tepperberg managed to keep Marquee one of NYC's hottest clubs for almost nine years. Meanwhile, they significantly expanded their portfolio of clubs in New York City, Las Vegas, and abroad. Now, after a costly renovation of Marquee New York City, would their investment pay off? Was it a wise idea to model the revamped club after its namesake in Las Vegas that had become North America's highest-grossing club by focusing on electronic dance music and featuring a high-profile DJ every night? Could Strauss and Tepperberg make the seemingly risky economics-which involved placing large bets on superstar DJs-work in a very different market? -
Sir Alex Ferguson: Managing Manchester United
Sir Alex Ferguson, the most successful manager in British football history, is preparing for the 2012-2013 season-his record-setting twenty-sixth as manager of one of the world's most decorated professional football clubs and one of sport's biggest franchises. Over the years Ferguson has overcome several major challengers to United. The newest rival can be found closer to home: since Manchester City, United's "noisy neighbors," has switched owners, the club has invested unprecedented amounts of money in new players, resulting in its first league title in decades. How could Ferguson lead his team to another victory, and bring the next chapter in United's illustrious history to a successful end? -
Droga5: Launching Jay-Z's Decoded
In 2010, David Droga and Andrew Essex, co-founders of advertising agency Droga5, hope to convince both John Meneilly, manager of hip-hop star Shawn Carter (better known as Jay-Z) and a partner in Carter's company Roc Nation and Yusuf Mehdi, senior vice president of Microsoft's Online Services division, to enter into an unprecedented, high-stakes partnership to benefit the launch of Carter's new lyrical memoir, Decoded. Droga5 wrestles with two disparate challenges: developing a campaign for the book's launch and finding a way to drive trial for Bing, Microsoft's new search engine. Droga5's innovative solution is to kill two birds with one stone: a massive, interactive scavenger hunt involving outdoor, bespoke, and digital media. Because Spiegel & Grau, a Random House imprint that holds the rights to the book, lacks the funds to market Carter's memoir at a scale deserving of a superstar, Droga5 is asking Microsoft to shoulder most of the campaign's costs. How can Droga5 broker a deal between Roc Nation, Random House, and Microsoft, and ensure success for each of the parties? And is pursuing this campaign idea a smart investment for the young agency? The case describes a set of decisions that paved the way for a groundbreaking advertising campaign that would win major advertising-industry awards, including the Grand Prix at the 2011 Cannes Lions International Festival of Creativity and a 2012 Gold Effie. -
Lady Gaga (B)
In March 2011, Troy Carter, manager of pop star Lady Gaga, reflects on decisions made regarding his artist's concert tour and faces a new set of challenges regarding the launch of Lady Gaga's new album, Born This Way. Is a huge, expensive launch akin to that of a "tent-pole" movie the best way to capitalize on Gaga's popularity, or is a more moderate approach that relies on word-of-mouth the right way to proceed? Designed to help students understand the decisions that helped propel Lady Gaga into one of the entertainment world's biggest names. Written from the perspective of her manager, the case provides rich insights into the artist's touring, recorded-music, and social-media activities, as well as supporting economic data. -
Lady Gaga (A)
In September 2009, Troy Carter, manager of up-and-coming pop star Lady Gaga, has to decide on a new course of action now that his artist's planned co-headlining arena tour with hip-hop superstar Kanye West has been canceled. Carter knows that continuing the tour solo comes with huge risks, but scaling it back to smaller theaters or postponing the tour altogether has disadvantages as well. Making matters more complicated, Carter also has to consider the implications for Gaga's partners, including the concert promoter Live Nation and the William Morris Endeavor agency. What is the best strategy? This case is designed to help students understand the decisions that helped propel Lady Gaga into one of the entertainment world's biggest names. Written from the perspective of her manager, the case provides rich insights into the artist's touring, recorded-music, and socialmedia activities, as well as supporting economic data. -
The Creative Industries: The Promise of Digital Technology, Module Note
No abstract. -
Marvel Enterprises, Inc. (Abridged)
The management team of Marvel Enterprises, known for its universe of superhero characters that includes Spider-Man, the Hulk, and X-Men, must reevaluate its marketing strategy. In June 2004, only six years after the company emerged from bankruptcy, Marvel has amassed a market value of more than $2 billion. Originally known as a comic book publisher, the company now also has highly profitable toy, motion picture, and consumer products licensing operations. However, doubts about Marvel's business model and its growth potential continue to exist. Had Marvel's winning streak been just a fluke? Was Marvel's success dependent on a limited set of blockbuster characters, most notably Spider-Man, and should Marvel continue to capitalize on those characters? Or was it time to seek growth in a larger set of lesser known characters? In exploring growth opportunities, was it wise for Marvel to venture outside its current business model and move into more capital-intensive activities? What marketing strategy would allow Marvel to sustain its success in the coming years? -
The NFL's Digital Media Strategy
In late 2009, Brian Rolapp, senior vice president of media strategy and digital media for the NFL, was faced with the challenge of determining the league's strategic approach to the wireless market - and presenting his views to NFL team owners. What was the league's best strategy for the mobile space? The case describes the antecedents of what is widely regarded as a landmark deal for the NFL, its $780-million, four-year exclusive partnership with Verizon. Provides in-depth information on the NFL's digital media revenues, and relates those to the league's overall media and other revenues. Enables a rich discussion of new distribution opportunities and ensuing marketing and channel-management challenges. -
A&M/Octone Records: All Rights or Nothing?
In April 2008, after successfully transitioning Octone Records to Universal Music Group and relaunching the label as A&M/Octone Records, president and chief executive officer James Diener is facing a new challenge. Diener and his executive team have trouble convincing a new, promising act, Paper Tongues, to join A&M/Octone on a so-called all-rights deal, which specified that the label would receive a percentage of all of the artist's revenue streams, including recorded music, concert-ticket sales, merchandising, commercial licensing, sponsorships, and endorsements. Negotiations have stalled. Should A&M/Octone hold on to its "all-rights or no deal" stance? Or was it time to switch to a recorded-music-only deal? Designed for use alongside "Octone Records," HBS No. 507-082, the case allows for an in-depth examination of new-product development and talent management strategies in the context of the music industry. The case provides rich insights into how contracts between labels and artists are structured, and how advances in technology are impacting the music industry and its players. -
Major League Baseball Advanced Media: America's Pastime Goes Digital
In January 2010, Bob Bowman, chief executive officer of Major League Baseball Advanced Media -- MLB's digital arm -- is facing a number of decisions related to its app for Apple's new iPad. For example, what are the best name, price, and set of features for MLBAM's iPad app? The case describes what is often seen as one of the most successful paid-content businesses in sports and media. Provides in-depth information on MLBAM's four main sources of revenues and relates those to the league's overall revenues. It also describes the company's online and mobile offerings in considerable detail and outlines the choices facing MLB's offering for Apple's iPad device, enabling a rich discussion of viable marketing strategies. -
YouTube: Time to Charge Users?
In January 2010, YouTube, the world's largest online video aggregator, was still seeking to become profitable. Was the time right for Google, YouTube's parent company, to charge users seeking to upload content, as some analysts had suggested - and if so, who should be charged how much and for what? Could YouTube charge users for downloading content, a model it was now beginning to test? Or would it be better for the online video giant to continue to pursue an advertising model, but perhaps broaden its services to advertisers? Describes the online video market as of 2010 as well as YouTube's offerings to users, content owners, and advertisers. Provides information on the site's revenues and costs. Also contains detailed data on online video users and usage behavior. -
Hulu: An Evil Plot to Destroy the World?
In July 2009, Jason Kilar, the chief executive officer of Hulu, is debating whether the online video aggregator should move away from a purely advertising-supported model, and whether it should participate in an industry-wide initiative to develop and test "authentication" technology that can facilitate a subscription or pay-per-view model. The case traces the early years of Hulu, a joint venture between News Corp. and NBC Universal, that was initially met with strong skepticism but quickly became on the most celebrated and popular online video business. Provides in-depth information on how the company serves content owners, users, and advertisers. Describes the online video space in considerable detail, also covering economic and viewership statistics that enable a rich discussion of viable business models. -
The Creative Industries: Managing and Marketing Talent, Module Note
This module note examines issues concerning the management and marketing of talent in the creative industries. It describes the characteristics of the market for creative talent, discusses how individual talent creates and captures value, and explores how professional firms can best recruit, develop, manage and market creative talent. -
The Creative Industries: Managing Products and Product Portfolios, Module Note
This module note examines the way in which professional content producers in the creative industries approach product and product portfolio management, and explores the underlying reasons for their strategies. -
Marquee: The Business of Nightlife
In December 2008, nightlife impresario Noah Tepperberg is celebrating the fifth anniversary of his New York City nightclub Marquee. While most clubs are over within their first one-and-a-half years, Tepperberg has succeeded in keeping Marquee one of NYC's hottest clubs for what seems an eternity in the nightlife industry. However, concerns remain about Marquee's staying power, rising costs, and increased competition. When is the right time for Tepperberg to pull the plug on Marquee? -
LeBron James
In 2005, to the astonishment of many sports industry insiders, superstar basketball player LeBron James fired his agent and established his own firm, LRMR, to handle all aspects of his business ventures and marketing activities and named his childhood friend Maverick Carter as the CEO. LRMR is tasked with turning James into a global icon as well as helping him reach his personal goal of becoming basketball's first billionaire. In late 2008, James has entered various lucrative endorsement deals and is considering three exclusive videogame endorsement opportunities from Electronic Arts, 2K Games, and Xbox Live to add to his portfolio. Allows for a rich discussion about how superstar athletes and other celebrities can create and capture value from their brands as well as what role talent agencies and other intermediaries play in that process. Provides in-depth information on three endorsement opportunities that each represents a common way in which talent can (choose to) get compensated: through a fixed-fee payment, a bonus payment structure, or a revenue-sharing agreement. -
The Metropolitan Opera (B)
In April 2007, the New York City Metropolitan Opera's general manager Peter Gelb looks back on the first season of a daring experiment to broadcast performances live in high-definition to movie theaters across North America. While the "Live in HD" program has received mostly positive reviews, there are lingering concerns. Do the benefits of the simulcasts continue to outweigh the possible drawbacks and the significant operational and financial resources? -
The Metropolitan Opera (A)
In April 2007, the New York City Metropolitan Opera's general manager Peter Gelb looks back on the first season of a daring experiment to broadcast performances live in high-definition to movie theaters across North America. While the "Live in HD" program has received mostly positive reviews, there are lingering concerns. Do the benefits of the simulcasts continue to outweigh the possible drawbacks and the significant operational and financial resources? -
Should You Invest in the Long Tail?
The blockbuster strategy is a time-honored approach, particularly in media and entertainment. When space is limited on store shelves and in traditional distribution channels, producers tend to focus on a few likely best sellers, hoping that one or two big hits will carry the rest of their lists. But online retailing and the digitization of information goods have changed the commercial landscape: Virtual shelf space is infinite, consumers can search through innumerable options, and the marginal cost of reproducing and distributing products is low. What does that mean for the blockbuster strategy? In his 2006 book, The Long Tail: Why the Future of Business Is Selling Less of More, Chris Anderson, editor of Wired magazine, argues that the sudden availability of niche offerings more closely tailored to their tastes will lure consumers away from homogenized hits. The "tail" of the sales distribution curve, he says, will become longer, fatter, and more profitable. Elberse, a professor at Harvard Business School, set out to investigate whether Anderson's long-tail theory is actually playing out in today's markets. She focused on the music and home-video industries-two markets that Anderson and others frequently hold up as examples of the long tail in action-reviewing sales data from Nielsen SoundScan, Nielsen VideoScan, the online music service Rhapsody, and the Australian DVD-by-mail service Quickflix. What she found may surprise you: Blockbusters are capturing even more of the market than they used to, and consumers in the tail don't really like niche products much. Elberse outlines the implications of her research for producers and retailers, and offers strategic advice to both groups.