Beware the lessons of growing up Galapagos

Eugene Wei is worth reading on everything: he's worked at Amazon, Hulu, Flipboard, and most recently Oculus, and I always appreciate his perspective. This is a long, discursive post about why the NFL is likely going the way of the dinosaur, and he slips in some interesting commentary about the crazy prices tech companies have paid the NFL for streaming rights, to no clear effect:

This provides the leagues opportunities to swindle the tech companies for a while longer, an example being the rights to stream Thursday Night Football, which a series of tech companies from Yahoo to Twitter to Amazon have (probably) overpaid for the last few seasons. As Patrick Stewart said in L.A. Story, "You think with a statement like this you can have the duck?!" The chef says, "He can have the chicken!" Thursday Night Football is zee chicken of the NFL broadcast portfolio, but the restaurant is still called L'Idiot.
This happened for tech companies when they tried to add film and television to their portfolio, too. They routinely paid fortunes for the rights to back seasons of shows that are no longer relevant anymore. When I was at Hulu, I could only shake my head when I heard the asking price for all the back seasons of Seinfeld. Years later, long after I'd left, Hulu paid multiples of that. The cultural decay curve for content in this age of abundance is accelerating by the day, and there is no equivalent of botox to ward it off.
Given market feedback, however, such temporary arbitrage never lasts long. The days of the NFL strong-arming its partners to overpay for the most meager of rights are coming to an end. The thing about setting up a moat around your content is that the moment your cultural value crosses its peak, the moat becomes a set of prison bars. The flywheel loop can turn just as furiously counter-clockwise as clockwise.


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