Economics | Ben Rosenfeld

TV Without Advertising

Based on Dish Network adding a commercial auto-skip feature (and the subsequent complaints) and my previous speculations, I thought it’d be interesting to discuss what TV might look like if (when) advertisers stop advertising for everything but live events like sports and news.

Here’s what’s true:

There’s more TV shows than ever
There’s more good TV shows than ever (and still plenty of bad ones)
Because of the segmented market (a.k.a. more and more cable networks), a show can have a lower rating and still stay on the air
A TV show can get (more) popular five years after it goes off the air due to DVD sales and the internet (The Wire, Arrested Development, etc.)
If it’s easy and reliable, consumers will pay some amount of money per month ($10 for Netflix/Hulu Plus to $100+ for a cable/satellite provider ) to watch TV shows on their TV and or other devices
People don’t want to watch TV commercials (or at least wouldn’t complain if they disappeared)
The TV Network financial model is all about selling commercials
For live broadcasts, TV quality is still significantly better and more reliable than the internet

Imagine all advertising stops for non-live shows (everything but the news and sports). How else might TV shows make money?

Here’s my idea: Have each user pay $X a month for unlimited video, then pay each show a percentage, based on how much of it the user watches.

A cable box-like device would measure how many M minutes you watch of each show and add up how much TV you watch each month.

That show’s income could = M (minutes of show watched) / T (Total Minutes of TV this month) * $X (the monthly service fee)

In other words, each show gets the % of your monthly viewing fee which you spent watching that show.

Example: The service costs $40 per month, I watch 5 episodes of The Office with each episode being 20 minutes long, and I watch 800 total minutes of TV in the month. The creators of The Office would receive (20 * 5) / 800 * 40 (1/8 of 40) which is $5. With 9 million viewers, these numbers add up quickly. Of course, the company (most likely cable, satelite or dot com) that creates and adminsters such a system would charge an administrative fee (I’d imagine it around 10% – 20%).

Some Consequences / Impacts:

The more popular your show, the more money it makes.
It’d be more profitable to get users who barely watch TV to watch your show.
Built in residual income — if your show gets popular five years after it comes off the air, you still get paid the same amount and can turn a profit. This is basically The Long Tail effect.
Contracts structure might be changed so that more actors / directors / writers are paid a percentage of the total income, instead of a one time fee. This better aligns everyone’s incentives for a successful, long running, well written series.
Instead of pitching an idea to a TV Network or production company, you could pitch it directly to a venture capitalist (Sillicon Valley Style) or Satellite/Cable/Amazon/Netflix type company. This may lead to more buyers and consequently more shows.
This same cable-like box could also incorporate an Amazon / NetFlix like recommendation system for TV. Users can rate and review shows, and receive recommendations on what shows they may like based on how they’ve rated shows to date.
This could turn into a Pandora type stream, where everyone has their own customized channel(s) with the shows they like to watch. Would networks still be necessary?
Everything but news and sports can become on demand, and there’s no waiting week to week for the next episode of the season.

Pro Talk: Becoming a Full Time Comedian

I recently caught up with Clayton Fletcher to get his thoughts on the process of becoming a professional comedian.

clayton Clayton Fletcher is a national headliner who performs all over the USA in various clubs and colleges. He has been seen on MTV, Sex & the City, and Rikki Lake. His live comedy show, The Clayton Fletcher Show, takes place every Friday and Saturday at 8PM at New York Comedy Club. For more, visit www.claytonfletcher.com

1. Can you discuss the transition to professional comedian? Is it a gradual process where you make more money each year until you can start doing it full time or is it more like a “zero to sixty” process?

Becoming a professional comedian is definitely a gradual process. I remember the first time I got paid I made $50 for a twenty-minute set in a restaurant. I only had twelve minutes of material so I tried doing crowd work for theother eight. It was the second-hardest fifty bucks I ever earned.

After that restaurant show I didn’t make another dime from comedy for about a year. But that little taste of getting paid drove me to work harder almost as much as bombing at my first professional show did. It doesn’t happen overnight but it does happen.

2. I’ve heard that most of the money is in road work / college work and not from working the clubs in NYC or LA. Is this true? How big is the difference?

Oh, definitely. If you are not a superstar comedian like Chris Rock or Lewis Black the payscale is much lower in the two major markets. The reason is quite simple: the law of supply and demand. If someone offers me $100 for a spot in New York and I demand $125 they can just hang up the phone and call one of the other six million comics and offer him or her the hundred. In Flint, Michigan, I am usually the only comedian in town when I show up so it is easier for me to set the price. Supply in New York is at such a surplus that if half the comics moved to L.A. today, the competition for every spot would still be fierce.

Although if that happened I would not mind at all…

3. Besides performing, what are the various (but related) ways a comedian can try to make money? Are these other streams significant?

The first other significant revenue stream that comes to mind is writing. I have written for film and television, usually as a “punch-up” artist. Punch-up just means that the script is complete except it could be funnier, so they hire comedians and comedy writers to try to add some more funny moments, to punch it up! Typically comics who do punch-up do not get writing credit but the money is often about what you would make on a weekend of performing.

I have also written for corporate projects such as award ceremonies, ad campaigns, and in-house films. Obviously the rates for anything in the corporate world are always higher since a company that is hiring a comedian as a consultant can afford to compensate him. When these opportunities come up, I am happy to be a sellout!

Other ways to parlay your comedy skills include doing commercials or voice-overs, working as a live event host, and teaching. I find that my comedy background gives me a huge edge in all of these endeavors as well. So often on a commercial audition they want me to improvise, and the comedy skills really come into play although stand-up in particular does not.

The other side-business I must mention is producing. There are countless opportunities in New York for self-driven comedians to take responsibility for booking a club on a certain night and then putting a show together. It is a tremendous amount of work (finding comedians, promoting, filling seats, finding a host, negotiating with headliners) but someone skilled in these areas can make a good living doing just that if (s)he wants to. In fact, many comics I started with nine years ago are now full-time comedy producers in New York who hardly ever get onstage themselves. Personally, my need to entertain people is so great that this path would never work for me. I would be like the alcoholic who owns a bar. But for them it has become a niche so I am happy they found their path.

4. At what point do you think someone should quit their day job?

Moving to full-time is a very difficult choice. For most it is terrifying. Once you quit that job, you lose your steady income, your health insurance, and the respect of your parents. I have never had a full-time job so I have no idea what it is like to have any of those things anyway. But if a comic is hungry and her act (not to mention her budget) shows that she is ready to take the training wheels off, I usually advise her to go for it! If things do not go according to plan then she can always hit up monster.com later. A good guideline is to walk away from the desk once you are making (or think you can make) at least 50% more from comedy than you were at your regular job. If this sounds high, remember that being self-employed is very expensive as no human resources department will show up to take care of your basic needs.

5. I read Norm McDonald earns $40,000 to headline a weekend in Vegas. (He then proceeds to gamble away $50,000.) What’s the highest headliner fee you’ve heard about?

I have heard that one A-list celebrity comic earns over $200,000 per corporate personal appearance. Although in these times of corporate scrutiny I would imagine those days are over.

6. I’ve also seen a “headliner” get $60 to do a 45 minute set (in Virginia). What’s the lowest fee you’ve heard? Is there a “standard” rate?

That $60 you just mentioned is an insultingly low price for a road headliner. Hey, who books that gig? Can I get his information? What, I like Virginia…

There is no standard rate but generally comics have a bottom line. Kidding aside, I know how much I would charge to do 45 in the South and every comic has his own number in mind. But it is almost like the number of girls you slept with: you keep it a secret and you might embellish one way or the other depending on who you’re talking to!

7. Anything else about the financial aspects of comedy you think aspiring comedians should know?

Well, I come from a theatrical background and a show business family so my attitude was always if I do what I love, the money will come. Now that I am in my thirties I can tell you that such romantic idealism is for suckers! The money only comes when you work extremely hard at your craft AND your business. I made a lot of mistakes in the financial area when I started out, viewing myself as an ar-teest. But now I see myself as a performer AND a shrewd businessman. And that is the reality for anyone trying to make a living as a comedian.

10 Strategies To Succeed In Corporate America Without Really Trying

I’ve spent the past 3 years working for a Fortune 500 Consulting firm. During this time I’ve observed not only my company’s corporate culture, but also that of three other fortune 500 corporations and one US Government agency each of which I consulted for. I was rated in the top 30% at my level the first year, and the top 5% my second year. (I left before third year ratings were announced due to grad school.)

These are the lessons I’ve learned along the way, and while you can probably apply this to other aspects of your life, it’s especially true in Corporate America.

1. Get your shit done (but avoid busy work)

The rest of these tips are useless if you don’t accomplish what’s asked of you.

2. They’ll take as much as you’re willing to give them. Know when to say “no”. (Especially if it’s busy work)

If you always say yes to every request (work late every night, weekends, etc.) your boss will appreciate it, but they won’t respect you. Think about that girl/guy you dated who you could walk all over. You lost respect for them eventually and dumped em, same logic applies here.
At least 60% of your daily tasks should add value. Running an occasional photocopy is one thing, becoming someone’s personal photocopier is another. If it’ something stupid that you have to consistently do, figure out how to automate it or get out of doing it.

3. Under promise, over deliver

The more complex something is, the easier it is to overestimate it and then impress everyone. If you say something should take you 20 hours and you finish in 12, that’ll be more impressive then if you say something should take you 11 hours and you finish in 12. Make sure you’re not just slow. Don’t make it less then 50% of your estimate, or else you lose credibility.

4. Manage Expectations

Example: If you start answering emails within 5 minutes, you’ll never be able to take a lunch hour. If you answer within 30 or 45 minutes (which is usually reasonable), you’ll have more leeway

5. Don’t confuse responding to emails with getting work done

There will always be a fire, but don’t confuse the fires for the long term goals.

6. Take your hour lunch

It doesn’t matter how much work you do if nobody knows about it. And chances are, even if you’re done with everything, at most places you can’t leave until a set hour. You might as well take a break, enjoy lunch and build relationships with people who may be able to help you in a pinch.

7. Know when your personality is an asset, and when it’s a liability

When you’re working with people, talk about things other than work some of the time. Just don’t do it at the wrong time.

8. Don’t be so busy doing work you forget to socialize

But don’t try to be super friendly with everyone, that’s fake and everyone will resent you for it. A realistic breakdown of work friends to acquaintances to people you should avoid is somewhere around 20% : 60% : 20%. If you haven’t figured out who to avoid, chances are it’s you.

9. Go out for drinks with your boss once a month

You don’t wanna be too buddy-buddy (there may be some exceptions) but you want your boss to know you’re an actual person and not some automaton that sits in front of a computer all day

10. Have an “in” with people at other departments, so you can learn things before they’re announced to the masses

You’re in a knowledge worker job, information is key, make sure you have unofficial sources to get a heads up when you need it

3 Bonus Strategies:

1. Use power laws to your advantage

The 80/20 rule really applies to the workplace. 80% of your success comes from 20% of your effort. Identify that 20% and focus there.

2. Promote yourself without being obnoxious about it

This takes some time to figure out but you don’t wanna be “that guy” who always talks about how much work you have and how hard you work. At the same time, you want to make sure people notice your work. If you’re aware of this tendency, you’ll already be on the right track.

3. Be able to present like a normal human being and not a robot reading powerpoint slides

This only applies to certain jobs, but if you have to present to people, don’t read the slides. We’ll all hate you and will finish reading the slide before you’ve gotten to the second sentence

How Do You Use Stand Up?

I’ve been thinking about Hugh’s comments regarding how art is used:

To me, the interesting thing about art is not the usual “Heroic, absinthe-soaked, vision quest lone individual archetypal artist crap”, but how the art is USED by the person who has it hanging on the wall. What’s it actually there for? Decoration? Showing off? A conversation starter? An ice breaker? A way of telling a story? Something to brighten up the room? A symbol of social status? An expression of individual worldview? An expression of emotion? A totem to remind oneself of something inspirational and/or important? Perhaps a bit of all these?

How would this viewpoint apply to stand up comedy? Do you use stand up when retelling a comic’s joke to your friend’s the next day? Do you want a take home souvenir after the show to put up on your wall to use as a conversation starter? Would you want a favorite comedian to send you a videotaped version of a joke personlized for your girlfriend’s birthday?

Thinking about making the stand up experience last longer than the show led to trying a visual representation of one of my jokes:

ex-on-st
I think many of my jokes would lend themselves to a similar form, but is this something anyone wants?

I’d love to hear your thoughts on how you use stand up comedy… and feel free to discuss comedians not named Ben.

So You’ve Been Laid Off: Now What?

I’ve written a script and story boarded it below. I know it will be much funnier if I ever get to shoot it with real actors and someone who can sound like a more convincing announcer than I do.

Feedback is always appreciated.

INT. BOSS’S OFFICE – DAY

BOSS

As you know we’re in a tough spot. And we’re going to have to let you go.

BOB

You mean I’m being laid off?

Zoom in on BOB, shock/frown turns to smile

CUE 1950’s music and NARRATOR

NARRATOR is 1950’s style voice/tone or similar to the NARRATOR from those annoying male enhancement commercials (Enzyte?) with the character BOB

NARRATOR

So you don’t have a job anymore? Don’t worry. It’s happening to lots of people. Here’s what you do:

INT. LIQUOR STORE – DAY

BOB walks into a liquor store, goes to the counter and puts down a bunch of singles, he receives lottery tickets

NARRATOR

Step One: Don’t buy lottery tickets. You’re not gonna win, and those dollars can be better spent....

CAMERA ZOOMS IN on a dollar bill

INT. STRIP CLUB -- NIGHT

CAMERA is still on a dollar bill, but when it zooms out, the bill is in a woman’s G-string and BOB is giving a thumbs up to the camera

NARRATOR

...at the strip club

INT. HOME OFFICE – DAY

BOB has a resume open on his computer and is working at it, the camera is zooming from BOB and the computer to just the computer

NARRATOR

Step 2: Use the internet to find a new jobs: Yahoo jobs dot com, Hot jobs dot com ...

CAMERA SHOWS Computer displays with the mentioned job sites then blurry porn as

NARRATOR

...and handjobs dot com

INT. BOB’S HOME – DAY

Camera shows BOB is exhausted from all the work

NARRATOR

Now that you’re not throwing away money at the state lottery and your resume is online, it’s time to take a well deserved break. Go outside. Get some fresh air.

EXT. HORSE RACETRACK – DAY

BOB is putting down bets on the long shot horse.

NARRATOR

That’s not exactly what I had in mind

EXT. COCKFIGHT YARD -- NIGHT

NARRATOR

No, not that either.

INT. DOOR EXIT TO OUTSIDE WITH SIGN “MONKEY KNIFE FIGHTS” – NIGHT

Camera shows BOB on his way towards the knife fights

NARRATOR

Alright Bob, let’s just move along

INT. BOB’S HOME – NIGHT

NARRATOR

Now that you’ve rested, it’s time to see if anyone wants to hire you yet.

CAMERA SHOWS BOB checking email. Zooms into the computer and displays 5 or 6 subjects about a job, and a porn spam mail with blow job in the title. BOB deletes the real emails and clicks the porn, and gives a thumbs up.

CAMERA SHOWS time going forward for six days. Tissues pile up near Bob’s “job search” machine.

NARRATOR

Eventually though, you need to go out and network.

BRIEF CLIP OF STRIP CLUB

NARRATOR

No not there.

INT. HOOTERS -- DAY

NARRATOR

Getting closer, but not quite Bob

INT. BUSINESS NETWORKING EVENT – NIGHT

NARRATOR

That’s more like it.

CAMERA finds Bob in a corner, shooting dice and collecting money

NARRATOR

With persistence and a little bit of luck, you’ll have a new job in no time.

INT. OFFICE -- DAY

Camera starts zoomed in on BOB as he types on a computer, but you cannot see the text. BOB is smiling.

NARRATOR

It may even be better than your old one.

Camera zooms out to show BOB as a bookie taking bets, camera ends with BOB giving a big smile and thumbs up to the camera.