What business are we in?

The NFL now “thinks of itself … as a media company,” says Barbara Cochran, Radio-Television News Directors Association president.

This quote was taken from a recent USA Today article (read it here)

But what does this really mean? What is a “media company”?

Simply put, a media company makes its money by using content to attract an audience, then sells to advertisers or sponsors exposure to that audience. The NFL’s audience spans several media including television, radio and Internet as well as live events (i.e. games).

If the NFL is in the media business, then what business are its 32 franchise teams in?

Some would say that we’re in the “football” business. But what does that mean? Does it mean we make footballs? Obviously not. Does it mean we make football players? Nope. We sell tickets to football games, but does that mean we’re in the “football” business, or the event business, or entertainment?

And if we do believe we’re in the “football” business, how does that belief affect the way we see our world? Does this paradigm in any way limit our ability to see possibilities beyond the stadium? If we’re in the football business, why do we need a Website? How can we capture the revenue potential from a national fan base if we can’t see beyond the stadium?

It seems to me that as long as teams think they are in the “football” business they will be limited in their abilities to grow online revenue. Furthermore, if we don’t expand our field of vision, we could be painting ourselves into a corner.

Most people have heard a million times the story of the horse and buggy salesmen who failed to realize he was in the transportation business and so did not adapt as new technology brought cars onto the scene.

It is very difficult to run a business and see the forest for the trees. Most successful companies focus on one core thing. Intense focus on one core thing leads to optimal performance. But while you’re focused on that one thing, markets can change. So if you don’t keep your head up (or have someone in your organization who’s looking forward) you may end up out of business.

Yet even if you do have a person or people looking forward, are you really going to listen to them? Will your day-to-day success prevent you from seeing new opportunities coming down the pike?

The NFL has historically made its money from providing “content” to TV. Now, with the creation of the NFL network and the relaunch of NFL.COM, the league is beginning to go direct. It is in fact a media company, AND a content producer. With the TV business in a state of flux, who knows what will happen at the next round of negotiations. It’s always possible that the TV networks will one day choose to stop (or be forced to stop) paying for NFL content. So while the move may seem a bit aggressive, it seems to me wise for the NFL to begin preparing for the future while times are good.

I believe teams can and should be doing the same things. But first, we have to decide what business are we REALLY in?