ZEITGUIDE to DISH, DISNEY and STARTUPIFICATION

One theme we explore in ZEITGUIDE 2014 is the startupification of companies in legacy industries. Now that corporate America has accepted—even embraced—the disruption stemming from digital technology, they are realizing the benefit of adopting start-up principles and methodologies.
Call it corporate FOMO (Fear of Missing Out if you don’t know, and it’s ok if you didn’t).
Many are creating strategic partnerships with tech startups, if not simply acquiring them; others just want to operate more like them.
This week’s deal between Dish Network and Disney is an example of the latter; they have adopted a streaming-Netflix-style over-the-top (OTT) model of delivering video content over the internet.
The deal will provide the 14 million Dish subscribers with the opportunity to pay just $20 to $30 (instead of $85 or more) per month for a package that includes ESPN sports, live news, a repertoire of older films and TV shows, as well as local broadcasters and ABC programs.
This addresses the consumers’ desire for lower subscription fees, while also providing them with more current content. In other words, they are creating a streaming-on-demand TV service, but because of Disney’s range of content this will provide consumers more variety (Read: live sports) than Netflix has to offer.
“We think there is a group of individuals, 18 to 34 years old, who would love to have a lower-cost product with some of the top content out there,” Dish Chief Commercial Officer David Shull told Bloomberg. “That’s who we’ll be targeting.”
Here are some other recent moves toward startupficiation:
Emulation: Responding to successful/disruptive startups by emulating their business model/product, e.g., iTunes Radio copies Pandora, P&G’s connected toothbrush competes with Beam Brush, Sony/Samsung respond to Kickstarter-funded wearable tech devices.
Taking lessons: Just this week, Javelin Inc received $1.5 million to expand its “startup culture” consulting practice. Clients including AMEX, USPS and News Corp.
Leaning up: Companies like Qualcomm and Intuit implement lean-startup methodology, the process that enables start-ups to retain agility and adjust their products while avoiding bureaucratic drag on speed and innovation.
Inviting them in: Office space is being provided to startups, giving large corporations access to entrepreneurial talent and technology while startups get access to corporations’ expertise and money. Companies doing this include Pepsi, P&G, Sears, Lowes, Clorox and Hershey’s.
Intrapreneurship: Companies are cultivating the entrepreneurial spirit among employees by encouraging intrapreneurship. Viacom, for example, has an internal startup called Scratch to figure out new revenue models for content.
Moving in: Companies like Walmart and GE are opening offices near Silicon Valley to recruit top talent who have spent many of their years at startups.
Teaming up: Partnerships with startup companies give old products and services a new edge—such as instant delivery. Walmart has partnered with Task Rabbit to ensure immediate delivery, and Home Depot teamed up with Uber for Christmas tree delivery. Staples has started selling the newly invented products that are crowd-vetted by the manufacturer Quirky.
And startupification isn’t just invading Corporate America — Read Steve Brill’s must read Time Cover Story, “Code Red,” and you’ll see how startup culture (specifically the tactic of the “Stand-Up Meeting”) went to Washington and saved the failed ACA website.
Learn more about startupification in ZEITGUIDE 2014, which you can get here.
Keep Learning,
Brad Grossman
Founder, Grossman and Partners
Creator, ZEITGUIDE
Artwork by Kristofer Porter