REINVENTING Andrew Lloyd Weber – A True Story
Firstly, I would like to thank all my followers who already commented on my new LinkedIn series entitled: “Reinventing XXX”. Your comments and emails are truly invaluable! To be frank, the depth of the feedback exceeded my wildest expectations - by a large margin. And it’s a humbling opportunity for me to reflect and… learn.
I’ve been saying it for years to all the AI evangelists: “If Deep Learning is not followed by a Deep Reflection – the DEPTH of gained wisdom will remain … pretty SHALLOW”. So, thank you for helping me to reflect and learn about how much some of my comments are close to your heart, too!
Shaped by extensive business experience acquired over the last 40+ years, my pattern recognition abilities allow me to see how to maximize business offerings & profitability. And looking at existing problems with a pair of fresh eyes - often brings a set of creative solutions, that were never even considered in the past.
And this exactly why I decided that the true stories in my posts will follow the actual interactions that took place. Such include at least one LinkedIn message, one follow-up email, and one follow-up phone call to companies’ CEOs. The lack of response will automatically qualify the “XXX offender” to end-up on my to-do list… and it’s only a matter of time before my “reflections” will shine the light on the “offender’s” leadership record.
To date, I already covered the interactions with the following companies: Booking, Indigo, and Boeing. This article describes my interactions with Sir Andrew Lloyd Weber & his production company: The Really Useful Group (RUG).
As always, I describe the REINVENTION PROCESS as a 5-legged stool that includes:
· OPM – Using Other People’s Money
· Push/Pull – Adding New & Untapped Revenue Streams
· Noncustomers – Focusing On New & Untapped Market Segments
· Business Model Innovation – As Important As Technologies Behind It
· Operating Advisor/Mentor – Hands-On Assistance With Strategy AND Execution
And to demonstrate the significant Value Innovation linked to my Reinvention Process, I often demonstrate the importance of focusing on Noncustomers – before doing anything else. However, as more of my reinvention posts are being published, I will talk less about the process and more about the actual recommendations…
The Past
Even the first paragraph of Andrew Lloyd Weber’s biography on Wikipedia says it all: “Andrew Lloyd Webber, Baron Lloyd-Webber is an English composer and impresario of musical theatre. Several of his musicals have run for more than a decade both in the West End and on Broadway.
He has composed 21 musicals. Several of his songs have been widely recorded and were successful outside of their parent musicals, such as "The Music of the Night" and "All I Ask of You" from The Phantom of the Opera, "I Don't Know How to Love Him" from Jesus Christ Superstar, "Don't Cry for Me, Argentina" from Evita, "Any Dream Will Do" from Joseph and the Amazing Technicolor Dreamcoat, and "Memory" from Cats. In 2001 The New York Times referred to him as "the most commercially successful composer in history".
The Daily Telegraph ranked him the "fifth most powerful person in British culture" in 2008, with lyricist Don Black writing "Andrew more or less single-handedly reinvented the musical."
A beautifully designed website: https://www.andrewlloydwebber.com/about/ gently reminds us that: “When Sunset Boulevard joined School Of Rock, Cats and The Phantom Of The Opera on Broadway in 2017, Andrew became the only person to equal the record set in 1953 by Rodgers and Hammerstein with four Broadway shows running concurrently. Other musicals he has composed include Aspects Of Love, Joseph and the Amazing Technicolor Dreamcoat, Jesus Christ Superstar, Evita and Love Never Dies”
And what a record of accomplishments it is! The list of awards and the scope of Andrew’s involvement in Theaters, Music, TV, and Film – are truly spectacular. Hence, I’m convinced, that some of the reasons for British drama and theater to be so proudly displayed as the main theme of the London Summer Olympics of 2012 – stemmed from Andrew’s outstanding legacy and creativity!
Source: RUG
The Present
The British press proudly reports that Andrew Lloyd Weber (ALW) is Britain’s wealthiest composer worth $1.4B. He outshines, Paul McCartney, Elton John, and even Mick Jagger and Keith Richards - combined. So, when one puts 50 years of Andrew’s accomplishments in the context of Venture Capital – he is a true Unicorn! But wait a minute… didn’t CB Insights just report that the worldwide count of startup Unicorns already exceeds 400? - these are all the startup companies valued at $1B+ in Tech & Media, Health & Environment, Consumer, Sports, and more. And not to be outdone, the total number of global unicorns tracked by Crunchbase is now just over 600, with their collective valuation soaring to nearly $2 trillion.
And then, there is Netflix – a $195B content distribution company… “An Internet subscription service for watching television shows and movies. Subscribers can instantly watch unlimited television shows and movies streamed over the Internet to their televisions, computers, and mobile devices and in the United States, subscribers can receive standard definition DVDs and Blu-ray Discs delivered to their homes” - https://www.bloomberg.com
Source: SeekingAlpha
To compare Netflix with ALW - I find the following metaphor quite useful: while Andrew is the world-famous DESIGN/BUILD architect of the composition, Netflix is the world-famous REALTOR – reselling the same content ‘000s of times, all around the world.
Granted, Andrew resells content, too: “The Really Useful Group is wholly owned by Andrew Lloyd Webber and exists to produce, license and promote his shows and music around the globe. Whether it is a professional production of The Phantom of the Opera or a school production of Joseph and the Amazing Technicolor Dreamcoat or School of Rock, your journey starts here. We represent Andrew’s works in theatre, film, television, music publishing and all other forms of licensing”
However, a large part of ALW’s revenues comes from live theater productions. And like Broadway, London’s West End is facing an existential crisis due to the COVID-19 lockdowns.
Source: RUG
Stepping into the ring…
And this is when I decided to step in and offer my help to Andrew. So, I used the Get In Touch form at RUG’s website and I wrote the following note:
“Dear Andrew,
1) You have created one of the most enduring legacies of this century. And your enormous gift to humanity was never as appreciated as it is today – during the lock-downs of the worst pandemic in 100 years!
2) While millions of viewers are glued to their TV screens every day – it’s mostly QUANTITY, not QUALITY of the experience, that occurs. IMHO, there is not even one good reason why companies such as Netflix could reach a Market Cap of $187B – offering the acquired content to 182 million subscribers. You, on the other hand, own the most remarkable theatrical content in the world, and yet I doubt that your content is reaching even 1/10 of its full potential.
3) Admittedly, I know nothing about the entertainment industry but my ground-breaking RedCarpet revenue acceleration strategies are UNIVERSAL – and I would like to help. My approach to business includes Design, Structure, Finance, and Deployment of Opportunistic Joint Ventures. It is at no cost to the company we help - as we leverage “other people’s money” - an ingenious alternative to costly acquisitions…
4) My turnkey approach helps to raise 10X more capital at 1/10 of the cost and it is based on our structured finance expertise. We financed over $1B of renewable energy infrastructure projects in the past and now offer a similar methodology to financing Healthcare, Fintech, Construction & Manufacturing ventures. And if our unique value innovation does not generate the desired results - we do not get paid…
5) What I learned over the years is that it is not just technology innovation, but also the exponential increase in the value offered to clients at a much lower cost – that makes all the difference. Yet we see too many product-oriented entities focused on pushing their product out the door – while losing ~70% of available revenue streams
6) I’m in the business of joining Advisory Boards/BODs of the most innovative companies all around the world. And as one of the ultimate BusinessAI veterans on the planet w/ over 30-yr hands-on AI expertise, I also bring supreme business savvy to separate the wheat from the chaff & deliver results. Thank you. I would love to connect and explore synergies…”
In response, I received the following reply:
“Dear Oleg,
Thank you very much for getting in touch. As you can imagine, it is not always possible for Lord Lloyd Webber to read every message that is sent in, but we are so pleased that you enjoyed watching Andrew's shows on YouTube. You can buy or rent them via the links below:
Joseph: https://www.youtube.com/watch?v=xN2XoVNt0mc
Jesus Christ Superstar: https://www.youtube.com/watch?v=Kc-8VI7kkHk
The Phantom of the Opera: https://www.youtube.com/watch?v=cTFO-Z5qZXA
Love Never Dies: https://www.youtube.com/watch?v=2RxBacdipps
We hope that you tune in this weekend for another musical screening. Kind regards,
RUG Online Team”
Wow, what I was even thinking? In many of my LinkedIn posts, including: “How Warm Is Your Pitch Anyway?” I wrote about the incompetence of many CEO gatekeepers to separate the wheat from the chaff. And I also said that a good CEO should never be overwhelmed. Such leaders must know how to delegate! So, instead of IGNORING good advice or a good pitch - the progressive CEOs could rely on a competent staff member and a rudimentary AI technology - to separate a cold call from the warm one.
My reply to RUG - below:
“Hello RUG Online Team,
1) Firstly, thank you kindly for a prompt reply
2) Secondly, please note that my message was not flattery - it’s the most audacious BUSINESS PROPOSAL
3) And thirdly, this is not the kind of email that ALW should miss…
I tried to put myself in ALW’s shoes and asked a simple question: despite the overwhelming challenges of COVID-19, what is the greatest growth opportunity to RUG that the post-COVID-19 world could offer?
Now, I’m convinced that ALW’s legendary creativity wouldn’t have just happened without a serious dose of curiosity…
Therefore, please find below a summary of what I propose:
It’s a brand new way to turn RUG into a Netflix For Stage Productions. And better yet - if I’m not successful, I don’t get paid! I always believed that to create significant Value Innovation – one needs to deliver 10X greater benefits at much lower costs. Hence, I propose:
· 10X More Revenues - a turnkey solution to bring MASSIVE new revenue streams
· 10X More Content – a unique way to create and monetize NEW content that will eclipse the size of the existing IP
· 10X Less Cost - my ground-breaking proposal brings JV partners & funding for rapid execution. I view it as an inexpensive way of creating RUG’s Corporate Venture Capital arm – to take full advantage of AWL’s Factor Endowment. For additional reference, please see my Linkedin post: LeanCVC
In a nutshell, my plan is based on the following three principles:
· OPM – Using Other People’s Money
· Push/Pull – Adding New & Untapped Revenue Streams
· Noncustomers – Focusing On New & Untapped Market Segments
To execute all of the above, I would love to join the RUG’s Advisory Board. The initial term could be as short as 3 months and it can be extended/terminated thereafter. I look forward to hearing from you. Please advise. Thank you. After all, it all boils down to people you “bring on the bus” …
A few days later, I received the following reply from David Dobson, Business Development Director at The Really Useful Group Ltd:
“Hi Oleg,
Thanks for getting in touch. This is not one for us I am afraid. We have very clear objectives for our business and your idea is not a fit.
We wish you luck with it.
All the best,
David”
As much as I was disappointed with David’s snub, and despite the cold shoulder that I was given by RUG - I still replied to David Dobson, but never heard back:
“Thank you, David. I appreciate your prompt reply and I do understand your position. I worked with many companies in the past and some have done very well by analyzing their customers with granular details. Logically, they are selling their products and services to existing customers they thoroughly scrutinized. And yet, I firmly believe that there are HUGE and untapped opportunities to generate new revenues by focusing on noncustomers…
IMHO, the experience of going through a major market crash was never as important as it is today. If your advisor recovered from the collapse of the financial markets of 2008 – you can say it was a random event. If the rapid recovery also followed the 9/11 & dotcom crash – you can still claim that it’s a coincidence. But if it also included the recovery from the recessions of the 1980s – it’s a PATTERN!
I am convinced that I could be EXTREMELY beneficial to grow your revenues, too. I learned it the “hard way” and carry many scars on my back to prove that Business Model Innovation is as disruptive as Technology Innovation. Still not convinced? - just read about what I’ve done with Verizon 20 years ago! I wrote about it in Keyword Spotting - The Art Of Listening & Observing
Unique pattern recognition abilities allow me to see what is still missing & how to maximize business offerings & profitability. And looking at existing problems with a pair of fresh eyes - often brings a set of creative solutions, that were never even considered in the past. Thank you and I look forward to hearing from you about how we can work together. Let’s talk. Are you available for a quick call next week? Thank you.”
The Future
So, what exactly did I have in mind by contacting Andrew Lloyd Weber? Well, it certainly wasn’t the recommendation for reselling the existing content - as is! There is a huge competition for subscription viewers already and I wasn’t about to suggest embarking on a price-war with Netflix, Amazon Prime, Apple TV+, HBO, Hulu, Showtime, Starz, or Disney+. I’ve said it many times before: “Intense Competition drives profits into the ground! And before you know it, you might be already digging…”
As mentioned in my previous posts, the huge pool of noncustomers emerges when one targets the exact opposite of its existing customer base. So, what would have happened if ALW and RUG targeted not the VIEWERS of its content but the content CREATORS instead?
Well, let’s look at the US first. If one checks the 2019 data at U.S. BUREAU OF LABOR STATISTICS there were 52,620 ACTORs gainfully employed in the US. The data also clearly indicates that for every EMPLOYED actor there are at least 10 UNEMPLOYED ones. Using the ratio of 10:1 - one can assume that the number of aspiring actors in the US is above 0.5MM.
IMHO, all actors would readily view not only the final show – but also the entire process of the show's PRODUCTION! And why would it be so valuable? Well, seeing and hearing all the rehearsals, all the readings, and all the interactions with the directors – offers a true insight into the creative process.
And this is how actors learn. To them, hearing the directors’ comments and seeing all the “takes” is INVALUABLE. Besides, it doesn’t take Einstein to figure out that for every 2 hours of a final cut, one can record and stream 200 hours of hard work leading to the final result.
In other words, ALW and RUG could offer 100X more viewing content than they currently do. And the new audience is not limited to actors… For example, there are 10,000 EMPLOYED dancers, 190,000 EMPLOYED singers, and musicians, etc. Hence, using the same 10:1 ratio, I’m talking about an additional 2MM of performing arts' hopefuls - that would gobble-up every minute of ALW’s expanded content.
Add to that number all the high-school performing arts students and teachers, university students, and all the attendees of Institutes for Performing Arts – and we are talking about a massive audience of tens of millions.
And this is just in the US! By the time all the artistic crowds of Europe, Australia, Africa, South America, and Asia are counted – the faithful audience will easily reach hundreds of millions. This is the kind of noncustomers that AWL and RUG could reach!
So, instead of selling the DVDs and streaming 20, or 30 outstanding shows, AWL could have offered monthly subscription packages to hundreds of millions of creative souls - all around the world! A different kind of Netflix, indeed! A "Netflix For Performing Arts"!
In conclusion
My message to all the CEOs disregarding outside ADVICE and to all the CEO’s gatekeepers: Open-up! The merit of the outside advice has nothing to do with how many years your advisor was involved within your industry. You already have all the domain-specific expertise you need. It’s time to start looking for outside-the-box advice, too! After all, the most successful companies strike the right BALANCE between:
? Domain-specific experts AND generalists
? Mile-deep AND mile-wide points of view
? Strategists AND tacticians
? Leaders AND managers, etc.
P.S. You can find additional reinvention stories in my recent posts such as:
I’m at that stage in my life where I don’t care about BOD politics and water-cooler gossips. Nor do I offer fake flatteries to CEOs. All I care about is how to solve CEOs' problems & deliver results. So, I am in the business of joining Advisory Boards/BODs of the most innovative companies all around the world. And as one of the ultimate BusinessAI? veterans on the planet w/ over 30-yr hands-on AI expertise, I also bring supreme business savvy to separate the wheat from the chaff.
As an Operating Advisor/Jack of All Trades, I work with VC/CVC/PE funds and the companies they support - at a granular as well as strategic levels. And in addition to focusing on organic growth, my ground-breaking RedCarpet? revenue acceleration strategies include Design, Structure, Finance, and Deployment of Opportunistic Joint Ventures. It is delivered at no cost to the client company, as we leverage “other people’s money” - an ingenious alternative to costly acquisitions…
My turnkey approach helps to raise 10X more capital at 1/10 of the cost and it is based on structured finance expertise. We financed over $1B of Renewable Energy projects in the past and now apply our expertise to the Finance, Healthcare, Fintech, Construction & Manufacturing sectors. And if our unique value innovation does not generate the desired results - we do not get paid…
What I learned over the years is that it is not just technology innovation, but also the exponential increase in the value offered to clients at a much lower cost – that makes all the difference. Yet I see too many companies focused on pushing their product out the door – while losing ~70% of additional revenue streams.
My proprietary “The Push, The Pull and The AI Bull?” process, generates huge secondary and tertiary revenue streams. Such a strategy is scalable and sustainable – resulting in significant revenue smoothing. It allows me to tackle rapid innovation issues; disruptive marketing strategies; operational efficiency improvements; brand enhancement; and securing growth capital.
In some cases, I step-in as an interim CEO to significantly accelerate scale-up and expansion. The emphasis is on EBITDA & Revenue Acceleration, Margin Enhancement & Opening New Channels in diverse markets. Unique pattern recognition abilities allow me to see what is still missing & how to maximize business offerings & profitability.
SELECT ACCOMPLISHMENTS: Using AI in CT medical diagnostic, financial fraud detection, solar PV, wind, WTE, energy efficiency, etc. Finance skills: equity, non-recourse debt, balance sheet financing, and tax equity. I also took a tiny startup public, building a $135MM enterprise & received grants from NRC & DND. Academic R&D collaborations included: UW, UofG, UofT, and MCC Consortium in Texas.