When discussing the painstaking production of unscripted TV programming, “fun” is a word not often heard. Likewise, when discussing professional skateboarding, “businessman” rarely squeezes into the conversation. But with a corporate television climate slowly nosegrinding its way into the internet age, it should come as no surprise that an insatiable demand for online video content is making even established networks goofy-foot their way into the embrace of new platforms.
From Skateboard to Boardroom: Superjacket Profile
Since the advent and meteoric rise of YouTube, traditional media outlets like cable TV networks and music recording giants have met with only occasional success turning proprietary content into a viral online hit. (Burgess, 2008). Decision-makers at these companies often lack the expertise necessary to create the kind of razor’s edge content necessary to generate such success organically (A. Maynard, personal communication, September 7, 2017).
Superjacket is one outfit helping television networks see the benefits of not just producing great online content, but utilizing that content as well. Founded in 2013 by reality TV producer Shane Nickerson and pro skateboarder-turned-reality-star Rob Drydek, Superjacket is the Glendale, California-based production company responsible for the long-running MTV hit Ridiculousness, a comedy clip show featuring Drydek and co-hosts poking fun at internet videos. Superjacket launched on the back of that show’s success, and has established an expertise generating similar comedic fare popular among younger male audiences (S. Nickerson, personal communication, September 7, 2017).
Business & Revenue Model: Integration With “Ridiculous” Assets
Superjacket’s business model is fairly simple. Like many production companies, it ideates and pitches show concepts to networks, like Nickelodeon and MTV. Networks establish their production preferences through programming purchases, with higher-risk ideas often passed over, particularly if proposed by a company with a spotty track record, or worse, no track record at all (S. Swalsky, 2017). Thanks to a sterling reputation grounded in hits like Ridiculousness, Superjacket pitches can be seen as lower-risk investments.
Once sold, networks provide Superjacket up front with the money needed to fund the project, calculated based on a total episode load. Superjacket is highly scalable; contracted production teams act as their own ecosystems for on-time delivery of a given load. Full-time positions are kept to a minimum to reduce overhead, with a core corporate team of less than a dozen. But total staffing levels can accordion out to as many as a hundred or more when production levels are highest (S. Nickerson, personal communication, September 7, 2017).
Due to the significant production overlap required for each show, Superjacket has become more vertically integrated. It has a number of in-house assets, like video and editing equipment, legal help and an internet clip house. The benefits of the latter are plain: in-house access to a huge quantity of content, full license to air that content, and the ability to pay once for video used multiple times across multiple productions. But its greatest assets are the two most crucial components to selling shows: the successfully produced shows in its portfolio and its talent, chief among them Drydek. The star power and comedic sensibility he provides in the boardroom and on-camera are crucial components of the company’s successful model (S. Nickerson, personal communication, September 7, 2017).
“Friendly Competition”
While companies like Dickhouse, Gorilla Flicks and Sweatpants Media could easily be considered Superjacket’s key competitors, co-president Shane Nickerson balks at the idea, as the relationships between these companies is more collaborative than rivalrous, with plenty of network airtime for good programming (personal communication, September 7, 2017). As Superjacket Social Media Producer Ally Maynard jokes, when company presidents spend much of the 1990s partying and stunt riding together, it can be difficult to foster cutthroat corporate environments (personal communication, September 7, 2017).
Cable Pro Rides Growing Online Video Wave
Superjacket shows are available in full online via cable network websites, which means it not only utilizes online content as a raw material, but produces it as well. This production is timely, with video traffic currently accounting for three-quarters of all consumer internet traffic and a global internet traffic rate of 10 GB per capita, a figure likely to be dwarfed by the 30 GB level expected by 2021 (Cisco, 2017).
Online content is now a key consideration for even established flagship programming, something unthinkable a decade ago. Late-night hosts like Jimmy Kimmel and Jimmy Fallon, the eponymous hosts of two of the best-known brands on television, have long understood the importance of creating segments that are easy to segment for online viewing and sharing (A. Flomenbaum, 2014). In fact, it was Fallon’s YouTube popularity and enormous digital content potential that led NBC to tap him as The Tonight Show host in the first place (M. O’Connell, 2014).
Although the online platform does not directly impact a production company like Superjacket financially – the network retains all ad revenue – it does allow more viewers to watch and share the shows they produce. In recent times the producers of unscripted programs have found it increasingly difficult to sustain their business models with networks requiring full ownership as part of deals (M. Schneider, 2017), but Superjacket has managed to remain largely unaffected by the trend, and enjoys a fruitful relationship with a number of networks. This should come as no surprise, as unscripted TV producers often think best of the networks that purchase the most programming content, and are more reticent to work with networks less receptive to show pitches (D. Robb, 2017).
Looking Forward: Superjacket Primed to Adapt
The future of online content, including the arrival of streaming services like Hulu and Netflix as their own networks, has the potential to alter Superjacket’s future in significant ways (S. Nickerson, personal communication, September 7, 2017). But with a proven track record and talent that fundamentally understands how to utilize and create the best online video content, it seems a safe bet that any change will be to Superjacket’s advantage.
References
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Cisco Visual Networking Index (2017). Forecast and methodology, 2016-2021 [Data file]. Retrieved from https://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/complete-white-paper-c11-481360.html
Dieker, N. (2014, September 24). The economics of internet comedy videos. Retrieved from http://splitsider.com/2014/09/the-economics-of-internet-comedy-videos/
Flomenbaum, A. (2014, March 6). Jimmy Fallon is winning the late night battle online. Retrieved from http://www.adweek.com/lostremote/how-jimmy-fallon-is-winning-the-late-night-battle-online/42676
Katz, E. (2015, September 16). Top 10 video monetzation platforms – it’s not only YouTube. Retrieved from https://www.adngin.com/blog/website-monetization/top-10-video-monetization-platforms-its-not-only-youtube/
Maynard, A. (2017, September 7). Personal communication.
Nickerson, S. (2017, September 7). Personal communication.
O’Connell, M. (2014, February 17). Jimmy Fallon’s online equity could redefine late-night success. Hollywood Reporter. Retrieved from http://www.hollywoodreporter.com/live-feed/tonight-host-jimmy-fallons-online-680909
Robb, D. (2017, January 17). Reality producers rank best and worst cable companies to work with. Retrieved from http://deadline.com/2017/01/producers-best-worst-ranking-cable-history-channel-1201887832/
Schneider, M. (2017, January 24). Unscripted producers feel squeeze of growing expenses, reduced pay. Variety. Retrieved from http://variety.com/2017/tv/features/unscripted-producers-survey-state-of-business- 1201967584/
Steinberg, B. (2017, April 27). NBCUniversal, Broadway Video will partner to make comedy content for advertisers. Variety. Retrieved from http://variety.com/2017/tv/news/nbcuniversal-broadway-video-upfront-tv-advertising-1202400485/
Strassberg, R. (2014, December 9). Above average: The online destination for comedy content creators. Retrieved from https://www.backstage.com/advice-for-actors/inside-job/above-average-online-destination-comedy-content-creators/
Swalsky, S. (2017, January 23). Best/worst survey of cable networks stirs controversy. Forbes Retrieved from https://www.forbes.com/sites/stephenswalsky/2017/01/23/best-worst-survey-stirs-up-big-reaction-at-cable-nets/#174519a35728
