Podcasts > The Bill Simmons Podcast > Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

By The Ringer

The Bill Simmons Podcast explores the evolution of the digital media landscape with Jason Goff and Dave Finocchio. They discuss the rise of Bleacher Report, which offered personalized sports content at a time when traditional media giants struggled to adapt to the internet. The conversation covers how digital media companies capitalized on social media platforms like Facebook, and the subsequent industry shift toward acquisitions and unsustainable growth.

Looking ahead, Finocchio presents his vision for launching a niche website in 2024. He emphasizes tailoring content to solve specific problems and cultivate engaged communities, rather than attempting to provide broad coverage. The episode provides insights into navigating the ever-changing landscape and seizing opportunities in the digital media space.

Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

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Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

1-Page Summary

Building a Sports Media Company in the Mid-2000s

Dave Finocchio explains how Bleacher Report offered personalized sports content through newsletters and Google search traffic, gaining traction amid struggling traditional media giants like ESPN. Despite skepticism about entering the crowded sports media market, Finocchio persisted, as Bill Simmons notes competitors like Sports Illustrated also faltered digitally then.

The Rise of Social Media and its Impact

Finocchio discusses how Facebook's integration of third-party content drove a massive traffic surge benefiting publishers. However, he cautions that relying too heavily on this algorithmically-driven social traffic posed significant risks when Facebook's strategies inevitably shifted.

Changes in the Digital Media Landscape

Simmons and Finocchio describe a transformation where the focus moved from growing audiences to pursuing acquisition, with companies investing in appearances to attract buyers. Finocchio confirms this strategic pivot geared towards acquisition after Bleacher Report's 2012 sale.

They also touch on the bursting of an unsustainable growth bubble fueled by overspending and unrealistic valuations. Simmons highlights a new era of more judicious acquisitions combining complementary businesses to create greater customer value.

Launching a Website in 2024

Finocchio outlines his approach with The Cool Down: solving a real pollution problem, building an engaged community through partnerships and influencers, and ensuring profitability via effective business management. He emphasizes focusing on niche problems and audiences rather than broad coverage. Data-driven ad targeting and potential B2B tools are also noted as revenue streams.

1-Page Summary

Additional Materials

Clarifications

  • The burst of the unsustainable growth bubble in the digital media landscape referred to a period when companies in the industry were overvalued and spent excessively, leading to financial instability. This bubble burst when the unrealistic valuations and unsustainable growth trajectories of these companies became apparent, causing a market correction. The aftermath prompted a shift towards more cautious and strategic acquisitions, focusing on creating genuine customer value rather than solely pursuing rapid expansion. This period marked a transition towards a more sustainable and realistic approach to growth and investment in the digital media sector.
  • After Bleacher Report's sale in 2012, the company shifted its focus from solely growing audiences to actively pursuing acquisition. This strategic pivot involved aligning its efforts towards attracting potential buyers and enhancing its appeal for acquisition. The move marked a transition towards prioritizing qualities that would make Bleacher Report an attractive investment or acquisition target in the digital media landscape. This shift aimed to position the company strategically for potential future mergers or acquisitions.

Counterarguments

  • While Bleacher Report may have offered personalized content, some critics argue that the quality of content suffered as the platform prioritized quantity and SEO over in-depth journalism.
  • Despite gaining traction, Bleacher Report and similar digital-first media companies have faced criticism for their heavy reliance on unpaid or underpaid contributors.
  • The assertion that traditional media giants like ESPN were struggling might be contested by pointing out that these organizations still held significant market share and had loyal audience bases.
  • The faltering of Sports Illustrated and similar outlets digitally could be seen not just as a failure on their part but also as a reflection of the broader challenges faced by legacy media in adapting to digital trends.
  • The benefits of Facebook's third-party content integration are undeniable, but it could be argued that this also contributed to the spread of low-quality or sensationalist content as publishers chased clicks.
  • The shift from audience growth to acquisition as a strategy might be criticized for potentially stifling innovation and focusing too much on short-term financial gains rather than long-term sustainability.
  • The pivot towards acquisition might be seen as a natural evolution of a maturing industry rather than a strategic choice, with market forces dictating the change.
  • The bursting of the growth bubble could be interpreted as a market correction, and some might argue that high valuations were justified for certain companies based on their potential for disruption.
  • The idea of more judicious acquisitions could be challenged by suggesting that while strategic, these acquisitions may still be driven by market hype rather than genuine synergies.
  • The Cool Down's focus on niche problems and audiences could be criticized for potentially limiting its market size and scalability.
  • The reliance on data-driven ad targeting and B2B tools could be seen as potentially problematic in light of increasing privacy concerns and regulations around data usage.

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Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

Building a Sports Media Company in the Mid-2000s

Dave Finocchio shares insights on developing Bleacher Report during a time when traditional sports media were failing to personalize sports content.

Leveraging Google search traffic and newsletter subscriptions for growth

At a time when traditional media broadcasted a broad and unfocused array of sports content, Finocchio saw an opportunity for a sports media platform that could offer a more personalized experience. With the advent of mobile apps, Finocchio explains, they were able to provide sports followers with the content they wanted while omitting the irrelevant, leading to a surge in audience growth around 2010. This explosion was driven largely by Google search traffic and a significant newsletter program that provided curated content to subscribers, combining the best of Bleacher Report’s articles with top-notch content from other sources. This strategy allowed them to act effectively as a portal while solving problems for fans.

Competing with established sports media giants

Finocchio started Bleacher Report as a college senior, identifying a lack of quality team content and a need for more entertaining sports coverage. Seeking venture capital funding, Bleacher Report was often met with skepticism, being told that the sports media industry was a zero-sum game controlled primarily by five significant players, including powerhouses like ESPN, Yahoo, ...

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Building a Sports Media Company in the Mid-2000s

Additional Materials

Clarifications

  • Dave Finocchio is a co-founder of Bleacher Report, a sports media company known for its personalized sports content. He played a crucial role in developing the platform's strategy to leverage Google search traffic and newsletter subscriptions for growth. Finocchio's vision and persistence were instrumental in establishing Bleacher Report as a significant player in the sports media industry, despite facing competition from established giants like ESPN and Sports Illustrated.
  • Bleacher Report offered personalized sports content by tailoring articles and news to individual user preferences, focusing on specific teams, players, and sports topics. This customization allowed users to receive content that aligned with their interests, enhancing their overall sports media experience. By leveraging data analytics and user feedback, Bleacher Report curated a unique mix of articles and multimedia content, ensuring relevance and engagement for each user. This personalized approach differentiated Bleacher Report from traditional sports media outlets, providing a more tailored and engaging platform for sports enthusiasts.
  • Bleacher Report leveraged Google search traffic by optimizing their content to appear prominently in search results, attracting more visitors to their platform. They utilized newsletter subscriptions to deliver curated content directly to subscribers, enhancing user engagement and retention. This strategy helped Bleacher Report grow its audience by providing personalized sports content and building a loyal following.
  • Bleacher Report faced challenges in competing with established sports media giants like ESPN, Yahoo, CBS, Sports Illustrated, and potentially NBC or AOL Fanhouse. Despite skepticism from investors due to the dominance of these major players, Bleacher Report persisted in offering unique and entertaining sports coverage. The landscape was further complicated by competition from platforms like SB Nation, AOL Fan House, and ESPN’s own team sites. New entrants like Bleacher Report had to navigate a competitive market to establish themselves in the sports media industry.
  • Venture capitalists were skeptical of Bleacher Report due to the dominance of established sports media giants like ESPN, Yahoo, CBS, and Sports Illustrated, who controlled the industry. They believed the sports media market was highly competitiv ...

Counterarguments

  • Traditional sports media may have been slow to personalize content, but they had established trust and credibility over years, which new media companies had to build from scratch.
  • Leveraging Google search traffic and newsletters for growth is a common strategy, and it could be argued that Bleacher Report's success was not solely due to these tactics but also timing, market conditions, and execution.
  • While mobile apps offer personalization, they also risk creating echo chambers where users are only exposed to content that reinforces their existing preferences.
  • The claim that Bleacher Report acted effectively as a portal could be contested by pointing out that true personalization requires more than just aggregating content; it involves understanding and adapting to individual user behavior.
  • The idea that there was a lack of quality team content might be challenged by noting that niche sports blogs and fan sites were already providing in-depth coverage for dedicated fans.
  • The dominance of established sports media giants could be seen not just as a barrier but also as a testament to their ability to adapt and maintain relevance over time.
  • The assertion that the sports media industry was a zero-sum game could be countered by the idea that the market can expand with the introduction of innovative products and services.
  • The competition from SB Nation, AOL Fan House, and ESPN's team sites might have actually spurred innovation and improved the overall quality of sports media.
  • The criticism of larger media companies like C ...

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Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

The Rise of Social Media and its Impact

Dave Finocchio addresses the role of Facebook in changing the media landscape and the inherent risks it posed for third-party websites reliant on social traffic.

Facebook becoming a dominant traffic source

Finocchio discusses the seismic shift in social media use when Facebook decided to drive significant traffic to third-party websites. He notes that Facebook’s integration of links to third-party content caused the average user time to increase from 350 to over 1000 minutes per month. This indicated that users were hungry for content beyond their immediate social circles, such as news and entertainment. Facebook’s transformation into a newsfeed was crucial for companies like Buzzfeed, which witnessed massive growth due to the surge in social traffic.

Reliance on platforms like Facebook becoming a risk

However, Finocchio also highlights the perils of this dependency. He explains that Facebook’s frequent strategy shifts posed a substantial risk to publishers th ...

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The Rise of Social Media and its Impact

Additional Materials

Clarifications

  • Dave Finocchio is a prominent figure in the digital media industry, known for his role as the co-founder of Bleacher Report, a popular sports media website. In the context of the text, Finocchio is discussing the impact of Facebook on the media landscape, particularly focusing on the shift in social media use and its effects on third-party websites. He highlights the benefits and risks associated with platforms like Facebook becoming dominant sources of traffic for publishers. Finocchio emphasizes the importance of diversifying audience-building strategies to mitigate the risks of dependency on a single platform like Facebook.
  • Facebook's strategy shifts could include changes in how its algorithms prioritize content from publishers, affecting the visibility and reach of their posts. Publishers heavily reliant on Facebook for traffic may face challenges if their content is deprioritized due to these shifts. This dependency on Facebook's ever-evolving algorithms can lead to uncertainty and fluctuations in website traffic for publishers. Diversifying traffic sources beyond social media platforms can help mitigate the risks associated with sudden changes in Facebook's strategies.
  • Algorithmic success on platforms like Facebook refers to the ability of content to perform well based on the algorithms that determine its visibility to users. These algorithms decide which posts appear on a user's feed based on various factors like engagement, relevance, and timeliness. Publishers often aim to create content that aligns with these algorithms to reach a larger audience and drive traffic to their websites. However, changes in these algorith ...

Counterarguments

  • While Facebook increased user engagement with third-party content, it's arguable that this also led to the spread of misinformation, as not all shared content was vetted for accuracy.
  • The interest in content beyond immediate social circles could be seen as a double-edged sword, as it may have contributed to echo chambers and polarization by showing users more of what they already agree with.
  • The benefits to companies like Buzzfeed might not have been sustainable or indicative of overall health in the journalism industry, as reliance on viral content can undermine in-depth reporting and quality journalism.
  • Some might argue that the risks associated with dependency on platforms like Facebook were clear from the outset, and publishers should have anticipated the need for a more robust and independent strategy.
  • The volatility caused by Facebook's strategy shifts could be seen as a natural evolution of a competitive market, where businesses must adapt to survive, rather than a flaw in the system.
  • There is a perspective that sugge ...

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Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

Changes in the Digital Media Landscape

Bill Simmons and Dave Finocchio discuss the significant transformations in the digital media landscape, looking at the shift from growing audiences to strategic acquisitions and examining the bubble that has burst due to unsustainable growth.

The shift from building audiences to pursuing acquisition

Simmons and Finocchio illustrate the change in media strategy that has taken place over time, pointing out a shift towards prioritizing the value of media companies to attract investors. During the late 2000s, there was a focus on traffic and audience metrics, but as time progressed, the strategy changed. By the 2010s, companies began to focus on their aesthetic appeal possibly to lure in buyers rather than on essential startup needs.

Finocchio talks about his experience leaving Bleacher Report in 2019 and how the focus in the industry had shifted from creating valuable content towards becoming attractive to investors. Companies, particularly some based in New York, invested heavily in appearances and brands, which could have been an attempt to woo advertisers or to set themselves up for acquisition. Simmons also discusses how companies during the 2010s looked more towards who might buy them out rather than focusing on their foundational values.

Finocchio confirms this shift in focus to aiming for acquisition, as seen when his company was bought in August 2012. The subsequent focus on Facebook by investors caused substantial investments in media companies, inferring a move towards a strategy centered around acquisition. He uses the success of Vice as an example of chasing valuations and strategies that later proved unsustainable.

The discussion between Simmons and Finocchio reflects a strategic media landscape pivot more towards acquisitions and consolidation to enhance user experiences rather than merely building standalone audiences. Companies now aim to build cohesive consumer experiences, sometimes by bringing together different parts to create something more beneficial for consumers.

The bubble bursting after unsustainable growth

The conversation also touches on the unsustainability of the growth strategies that were prevalent in the digital media space. Finocchio discusses how Turner's acquisition of Bleacher Report led to its growth beyond independent capabilities, with employee numbers and revenue increasing significantly post-acquisition. However, a sustainability issue ...

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Changes in the Digital Media Landscape

Additional Materials

Clarifications

  • Bill Simmons is a prominent sports writer, podcaster, and media personality known for his work at ESPN and The Ringer. Dave Finocchio is a co-founder of Bleacher Report, a sports news website, and has been involved in digital media and content creation. Both individuals have experience in the digital media landscape and offer insights into the industry's shifts and trends.
  • After Bleacher Report was acquired by Turner in August 2012, the company experienced significant growth in terms of employee numbers and revenue. However, this growth raised concerns about sustainability due to the rapid expansion beyond its original independent scale. The acquisition by Turner marked a pivotal moment in Bleacher Report's trajectory, leading to changes in its operations and strategic direction within the digital media landscape. This acquisition exemplified a common trend during that time of media companies being bought out by larger entities seeking to capitalize on the digital media market.
  • Turner's acquisition of Bleacher Report was a significant event in the digital media landscape. Turner Broadcasting System, a subsidiary of WarnerMedia, acquired Bleacher Report in August 2012. This acquisition allowed Bleacher Report to expand its reach and resources under Turner's ownership. It marked a strategic move by Turner to strengthen its presence in the digital sports media market.
  • Vice Media is a digital media company known for its edgy and alternative content. In the past, Vice pursued aggressive growth strategies and attracted significant investments, leading to high valuations. However, over time, it faced challenges with sustaining this growth due to changing market dynamics and evolving audience prefe ...

Counterarguments

  • The focus on acquisitions does not necessarily mean a disregard for audience building; both can be part of a balanced growth strategy.
  • Attracting investors can be aligned with audience interests if it leads to improved content and services.
  • Aesthetic appeal and brand investment can be essential for audience retention and engagement, not just for attracting buyers or advertisers.
  • Companies may focus on potential buyers as part of a long-term strategy that includes maintaining foundational values.
  • Consolidation and acquisitions can sometimes lead to homogenization of content and reduce diversity in the media landscape.
  • Some digital media companies have managed sustainable growth by diversifying revenue streams and not solely relying on acquisitions.
  • Reliance on platforms like Facebook for traffic can be part of a diversified traffic strategy, which includes othe ...

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Best In-Game Dunkers, LeBron Vs. Steph 37.0, Chicago’s New QB Hero, and Building a 2024 Media Company With Jason Goff and Dave Finocchio

Launching a Website in 2024

Dave Finocchio discusses strategies for launching a successful website in the modern media landscape, focusing on solving real problems, building an engaged community, and ensuring the profitability and sustainability of the business model.

Solving a real problem for an audience

Finocchio has founded The Cool Down to be a guide for consumers and businesses to transition to a cleaner future. He is addressing a significant problem—pollution—by offering trusted information that enables individuals to lower their pollution levels and improve their communities. This approach solves the real problem of accessing information about reducing pollution and bettering the environment.

Finocchio also speaks on the importance of having a niche focus in today's media era, highlighting the need for a focused approach on solving specific problems for a specific audience, rather than trying to be a jack-of-all-trades.

Building an engaged community and subscription base

The Cool Down has successfully built a sizable monthly audience of 35 million people. Finocchio discusses the success of the platform's newsletters in home and technology and the anticipation of launching an automotive newsletter. He mentions impactful brand partnerships with influential figures like free solo climber Alex Honnold, to create content that resonates with the audience and promotes sustainable practices.

Furthermore, Finocchio emphasizes the strategy of working with a diverse range of influencers—from country singers to sports stars—to build a community that is actively engaged with the purpose and content provided by The Cool Down.

Focusing on profitability and sustainable business models

Reflecting on his experience, Finocchio discusses the importance of having good business fundamenta ...

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Launching a Website in 2024

Additional Materials

Clarifications

  • Dave Finocchio utilized strategies such as focusing on solving real problems like pollution, building an engaged community through newsletters and partnerships with influencers, and ensuring profitability through sound business fundamentals and leveraging data for targeted advertising. He emphasized the importance of niche focus, diverse influencer collaborations, and sustainable business models to drive the success of The Cool Down website.
  • Dave Finocchio emphasizes the importance of solid business fundamentals to ensure profitability and sustainability for The Cool Down. He mentions that the business has been profitable for nine consecutive months and has a significant amount of money in reserves. By leveraging lower technology costs and data-driven advertising strategies, the company can operate more profitably. Additionally, exploring opportunities for B2B tools or insights based on their audience is seen as a potential avenue for generating further business value.
  • The comparison between technology costs now and in the past in running a content company profitably highlights how advancements have made it more cost-effective to operate such businesses today. Lower technology costs enable companies to allocate resources more efficiently, contributing to improved profitability and sustainability. This shift allows for better management of expenses and investments in content creation and distribution, ultimately impacting the overall financial health of the business.
  • Using data for strategic advertising beyond traditional placements involves leveraging insights from consumer behavior data to tailor advertising messages more effectively. This approach goes beyond simply placing ads in traditional spaces and focuses on understanding what resonates with the target audience. By analyzing data, advertisers can create more personalized and targeted campaigns that are more likely to engage and convert customers. This data-driven strategy aims to optimize advertisin ...

Counterarguments

  • While niche focus is important, it can also limit the potential audience size and revenue streams; diversification can mitigate risks and cater to a broader audience.
  • Building an engaged community of 35 million people is impressive, but it's important to consider the quality of engagement over quantity; a smaller, more active user base could be more valuable.
  • Brand partnerships and influencer collaborations are effective, but they can also lead to over-reliance on external figures whose values and actions could impact the brand's reputation.
  • Profitability for nine straight months is a good sign, but it doesn't guarantee long-term sustainability; market dynamics can change rapidly, affecting profitability.
  • Having substantial funds in the bank is positive, but financial reserves should be balanced with investments in growth and innovation to ensure future competitiveness.
  • Lower technology costs can indeed increase profitability, but they can also lower ...

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