Hi, it's Jenny here.

The Elusive Power and Potential of Entertainment

We know entertainment is a powerful and potent source of influence - indeed, only last week, Tim Davey framed the BBC as a tool to ‘create a UK that is more inclusive, more secure, and more successful.’

Ever since laundry companies created soap operas to help sell washing powder in the 1930s, brands have sought entertainment’s influence. However, the promise hasn’t (yet) been fully realised. 

There was a feverish buzz of excitement about twenty years ago when ‘new media’ (as the internet was called back then) would give brands endless opportunities outside of traditional advertising. Red Bull’s model - a media company not a soft drink - was heralded as the future and projects like BMW Films ‘The Hire’ swept the awards circuit. Unfortunately, these successes didn’t reshape the industry. Brands focused on what they wanted to say rather than what people enjoyed, leading to a fair bit of aggressive product placement, cringey branded content and a general sense of disillusionment. 

There have been some notable successes. In 2009 I was fortunate enough to work on an innovation project with Lego. The core strategy was to create an entertainment franchise rather than a toy range. So, rather than just ‘Lego Ninja’ we built a rich world called Ninjago, with characters, backstories and narrative arcs that could expand into multiple formats over time (side note: there is nothing more entertaining than listening to research groups where 6 year olds discuss the merits of skull monsters vs snake monsters). However, until recently these examples have been the exceptions rather than the norm and, generally, a business rather than marketing initiative.

So far, so negative. And yet I remain firmly of the belief that a flourishing relationship between brands and entertainment can be a huge win:win for all sides…audiences included. 

And we’re now at the tipping point where it might finally be possible at scale.

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Why now?

What has changed is that there is now mutual need on both sides: We have the gift of desperation with both industries facing systemic challenges…

Entertainment

• There is a financial gap to fill: Funding has been stripped out of the UK market leaving a £400m shortfall with huge swathes of the production force struggling to find work and AI threatening further displacement. Globally, Disney is trimming $3 billion from its content budget. 
• There’s cultural fatigue: A pop-culture apocalypse of bots, distraction, AI slop and endless sequels. We’re at a tipping point with the beginnings of a backlash and renewed appetite for fresh ideas.

Brands

• The attention drought continues:  Fragmented and inaccessible with a third of internet users now blocking ads. No one needs to give their attention to anything that doesn’t interest them.
• Commoditisation increases: Loyalty is on the wane (if it ever existed) and there’s been much discussion about brands’ increasing sameness. 

These systemic challenges, coupled with the reducing costs of entertainment production and creation from AI are (finally) creating a new set of conditions and opportunities.

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So, how do you do it?

I’m sure there are loads more but here are 5x business models that are worth experimenting with. (I’ve focused on TV/film here because I happen to like it, but it could apply to any IP or creator talent really)

• Equity investor: Pay for a proportion of the budget and keeps a slice of global sales, rights etc. E.g. Saint Laurent Productions co-financed award-winner Emilia Perez.

• Studio/Distributor partnerships: Develops projects with a guaranteed ‘pipe’. Nike’s Grid Iron Entertainment and Apple’s partnership.

• IP reboot: Buys dormant rights and relaunches them. Mattel turned an ageing doll into a US $1 bn Barbie movie franchise.

• Event spectaculars: Finances a live spectacle, then monetises around it. Louis Vuitton’s Pharrell runway streams draw 5–17 m live viewers.

• Franchise extension: Partnership unlocks supporting content, merch etc. White Lotus collabs (and, unofficially on Etsy!).

To make these possible also requires a mindset shift. The theory might make total sense but, as with most things in life, it’s the actual, practical reality that trips things up. Neither industry is set up for these models so there needs to be a system shake up. Here are three final questions to wrestle with:

Spread-Betting: Can we act more like a seed-investor with a risk tolerance for failure so it’s possible to try stuff and see what works? 

Creative Sovereignty: Can we let those who know how to make and distribute great stuff do it their way? Can we get comfortable swapping creative control for more valuable assets to monetise?

Process Shift: How do we set teams up to fit into entertainment rather than the other way around? Do we understand commissioning, distribution, and syndication? Can we think platform / format first? 

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So, in conclusion…

We’ve had good ideas about branded entertainment for a long time…and it’s hard. Hopefully now is the moment to get stuck in and make it happen for everyone’s benefit. 

As Richard Osmond stated on the wonderful Rest is Entertainment podcast: “ideas themselves are almost worthless<…>the hard work is in developing (them), in testing them, in casting them and directing them and cutting them.”

Or, to quote Lego Ninjago’s Sensei Wu: “Now is the time to unlock your true potential”.

‍Jenny Howard,
Problem Definer / Strategy Consultant