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jerryking : licensing   18

Andrea Illy: adapting a family business to a multinational world
JULY 20, 2019 | | Financial Times | by Rachel Sanderson.

*The coffee group chairman argues his style of capitalism is good for business, workers and the consumer*

Andrea Illy, third generation heir of the Illycaffè dynasty, last year struck an alliance with investment group JAB Holdings to produce and distribute Illy coffee capsules...he makes it clear that he does not intend to sell the closely held family company..... “It is a very simple principle about preserving our freedom,” he says of his and his family’s decision, one....Freedom is a word that comes up frequently in conversation with Mr Illy.....who espouses a sort of pick-and-mix version of capitalism, resolutely refusing to focus only on sales and profits. Illy argues his style of capitalism is not charity but good business.......Illy has paid its growers on average 30% more over market value for decades in order to maintain its supply of top Arabica beans. “....The company is rooted in the border city of Trieste....which is also ingrained in the nature of the family......globalisation and increasing competition in the coffee sector has forced Illy to adapt. Staying closely held does not work any more. Co-opetition is his new mantra."“It is like the way to adapt in the savannah. If you do not want to be prey to the big lion, you live in a tree.”"

Part of that adaptation has been the deal with JAB, which allowed Illy coffee capsules to be produced and distributed in supermarkets globally, something that Illy could not do alone......The global coffee industry has become increasingly like the beer tie-ups of the 1990s, with big groups such as JAB and Nestlé snapping up smaller companies. Illy has risked being squeezed between these behemoths and the microroasters emerging as the hip caffeine hit for millennials and Gen Z.....Bigger groups have circled Illy for years. Mr Illy says the family chose JAB because it had the technology he wanted and accepted a licensing agreement rather than an equity one.....To build its global presence, Mr Illy is now looking for a retail partner in the US to help launch Illy coffee bars in the world’s largest coffee market. He says he could even sell a slice of equity. But he is very specific who it would be to: a private financial investor, not an industrial group.....there have been other adaptations. Three years ago, Illy hired an outside chief executive — Massimiliano Pogliani, a former executive at Nestlé’s Nespresso — for the first time since the company was founded in 1933 by Mr Illy’s grandfather, Francesco. Mr Illy has also built a board including executives from clothing group Moncler and Italian cosmetics group Kiko...... studies show that family businesses often fail in the third generation. The move to hire outside management and governance comes as studies also show that family-owned, professionally-run companies are among the best performing in the long term. ......Mr Illy sees these alliances as the only way for a family business model to thrive and to not have to cede control to a multinational when “complexity is becoming too big for a single person to manage”.
.....good stewardship is good business......The Illy family is a supporter of arts and culture, including Trieste’s annual sailing regatta, the Barcolana, where hundreds of boats race across the bay. Mr Illy says this creates a virtuous circle: the more attractive Trieste becomes, the more talented people Illy can attract to work for it and the more visitors come to the city and raise its brand profile........A portrait of his father Ernesto hangs opposite his desk. “I put the painting there to ask him to control what I do,” Mr Illy says.

What, then, has he learnt from his family? “Society is made by the private sector, mostly. And if you want to improve society then we need to be able to pursue long-term goals which are beyond profitability, and then you have to be free and accountable only to yourself,” he says.

Three questions for Andrea Illy
Who is your leadership hero? I have three: Muhtar Kent, former chairman of Coca-Cola; my father; Sebastião Salgado [the photojournalist].

If you were not a CEO/leader, what would you be? A neurosurgeon.

What was the first leadership lesson you learnt? My father asked me when I turned 14 years old where I wanted to go to school. Do you want to start a journey to be a leader or do you want to have fun? I chose the first option and as a result chose boarding school in Switzerland over a local school at home. There I learnt about discipline and hard work but also about the power of a charismatic leader from my headmaster.
alliances  boards_&_directors_&_governance  climate_change  coffee  coopetition  dynasties  family  family_business  family-owned_businesses  financial_buyers  heirs  high-quality  Illycaffè  investors  JAB  licensing  Nestlé  premium  private_equity  privately_held_companies  stewardship  sustainability  the_counsel_of_the_dead  virtuous_cycles 
july 2019 by jerryking
Apple and Qualcomm’s Billion-Dollar Staredown
April 13, 2019 | WSJ | By Tripp Mickle and Asa Fitch.

Apple has called Qualcomm a monopoly and said Mr. Mollenkopf has lied about settlement talks between the companies. Qualcomm has accused Apple of deceiving regulators around the world and stealing software to help a rival chip maker.

For two years, the companies have bickered over the royalties Apple pays to Qualcomm for its patents. Discord between the CEOs, who bring different management styles and principles to the table, has deepened the divide. They have dug into their positions as the dispute has escalated....Apple’s patent lawsuit against Qualcomm is set to go to trial—with both CEOs expected to testify in a case where billions of dollars are at stake. .....Cook’s view that Qualcomm’s licensing practices—taking a 5% share of most of the sales price of an iPhone—was just plain wrong, allowing the chip maker to profit off Apple innovations in display and camera technology.....
5G  Apple  CEOs  conflict_resolution  disputes  Intel  licensing  litigation  mobile_phones  patents  Qualcomm  royalties  semiconductors  smartphones  Steve_Mollenkopf  Tim_Cook 
april 2019 by jerryking
The music industry dances to the beat of TV revenue - The Globe and Mail
September 4, 2017 | Globe and Mail | by JOSH O’KANE.

Toronto's Barenaked Ladies first blew up in the 1990s, when CDs were king. But music sales have since collapsed and streaming services such as Spotify have replaced some, but not nearly all, of that revenue. Bands such as Mr. Robertson's have made up for lost sales in large part by touring. As the fall TV season begins – including The Big Bang Theory's season premiere later this month – getting music on a TV show, film or commercial is becoming an increasingly enticing revenue stream for musicians and the businesses that back them.

As streaming-video platforms keep adding new, original shows and films on top of traditional broadcast channels, the opportunities to license music increase as well. The International Federation of the Phonographic Industry, the recorded music industry's global lobby group, reports that in 2016 Canada brought in $7.8-million (U.S.) in "synchronization" revenue for artists and labels from using music in TV, film, ads and video games.

While that represents less than 1 per cent of total revenue, it's a 32-per-cent increase over the previous year, signalling growing attention for recordings' revenue stream. Meanwhile, SOCAN – which collects royalties for songwriters and music publishers in Canada – says more than a third of all of its royalty revenue comes from TV sources.
films  licensing  music  musicians  music_industry  music_publishing  royalties  streaming  songwriters  television 
september 2017 by jerryking
Venture: The (musical) schlock stops with Jingle Punks - The Globe and Mail
DAVE MORRIS
The Globe and Mail
Published Thursday, Sep. 25 2014

Jared Gutstadt had been playing in struggling bands by night and working as a video editor at MTV by day, choosing tracks from “production music” libraries to soundtrack the action in the likes of Chappelle’s Show.

The music industry boasts dozens of libraries, the largest of which are affiliated with the major record labels, and millions of songs are available for licensing, from no-name tracks to cover songs to huge, prohibitively expensive hits. The Rolling Stones famously charged Microsoft a reported $3-million (U.S.) to license Start Me Up for an ad campaign for Windows 95.

Ready-made production music normally costs a fraction of that figure. The filmmaker or TV company licenses the publishing rights (the lyrics and structure of a song, as opposed to the actual recording), paying what’s known as a “synchronization” fee. In 2013, according to the IFPI, synchronization fees worldwide totalled $337-million. In addition, whenever the TV show or movie featuring the track is broadcast or reproduced on DVDs, the owner of the recording itself is usually entitled to another sum, producing a revenue stream that can be small, but potentially steady.

Gutstadt and a partner saw an opportunity to be the suppliers of the music for the shows he and his MTV co-workers were editing, and Jingle Punks was born. The opportunity to become more than a niche player emerged not long after.

“There wasn’t enough production music that was easily accessible for the tidal wave of content that was going to occur,” Gutstadt says on the phone from his office in Los Angeles. That wave was unscripted reality shows.

Jingle Punks’ technical innovation, spearheaded by co-founder and software developer Dan Demole, was to offer a curated selection of license-able songs organized by what Gutstadt describes as a “relational search algorithm.” Users can search for music using non-musical terms such as the names of movies, and select and pay for the use of those songs, all through the company’s website.
music  free  start_ups  MTV  digital_media  algorithms  licensing  licensing_rights  musicians  music_catalogues  music_labels  music_publishing  Dave_Chappelle 
september 2014 by jerryking
Got Growth? - Forbes
Lynn J. Cook
5/12/2003

While a gallon jug of white milk delivers single-digit gross margins, single-serve bottles of flavored milks and coffee drinks gross 45% to 55%. So Dean has been doing licensing deals with the likes of Hershey’s, Folgers and Land O’Lakes to market milkshakes to teenagers, mocha lattes to folks in their 20s and 30s and lactose-free milk to minorities (70% of Hispanics, 80% of African-Americans and 90% of Asians are lactose-intolerant)....Marketing, however, is not his forte. Engles is a market consolidator, spending most of the past decade eliminating his competition by buying it up.
soybeans  Dean_Foods  dairy  licensing  consolidation  food  growth  roll_ups  single-serve  high-margin  gross_margins  margins 
december 2013 by jerryking
The Lease They Can Do: What the Fight Over 'Used' Music Reveals About Online Media
April 03, 2013 | Businessweek | By Paul Ford.

What is a song worth to Spotify or competitors such as Rdio? To them, a song is an entry in a very large database—and they solve the licensing problem by managing the licenses in bulk, then allowing listeners access to their libraries of music. At some level, Spotify is not a music service but a license clearinghouse that specializes in music....So far, the large music labels have been able to negotiate with streaming services, but as the streaming music players get bigger their power will increase; Spotify is apparently looking for price breaks from the major labels.

The big question now is not “whose album gets made?” but more “who gets to listen?” Not just who, but when—and who gets paid for the privilege? Oh, for the days when record stores featured bootlegs and cats. The clerks might have been snotty, but at least you didn’t have to have endless discussions about databases and doctrine. No one, anywhere, had to know how often you listened to Supertramp.

That’s another part of the puzzle. Streaming services generate a tremendous amount of data that has value of its own; sooner or later it will be used to make decisions about what gets produced....So this is not about technology. Nor is it really about music. This is about determining the optimal strategy for mass licensing of digital artifacts. Songs are the commodity but the licenses are currency....So this is the task: Figure out how to make money, reward artists enough that they continue to make new things, and pacify the labels and studios, while also creating something that doesn’t rip off, confuse, or upset the audience. If someone can do that, then why stick to movies, music, or perhaps books? New forms of media could be sold as well. Tumblr blogs, animated GIFs, casual games, and the like could all flow into such systems. Right now, when media objects are sold, it’s often as art (like the six-second Vine video called “Tits on Tits on Ikea” that artist Andrea Washko recently sold for $200). A massive marketplace in ridiculous pictures could emerge. Flickr (YHOO)could turn into a mall. Pinterest could become … Pintere$t.
clearinghouses  music  online  Rdio  Spotify  streaming  licensing  licensing_rights  downloads  musicians  music_industry  databases  digital_artifacts  artists  markets  data  music_labels  Flickr  Pinterest  music_catalogues 
april 2013 by jerryking
As Netflix’s plot thickens, CEO strives to hone an edge
Sep. 10 2012 |The Globe and Mail | OMAR EL AKKAD - TECHNOLOGY REPORTER.

While such expansion helps to quickly build Netflix's customer base, it tends to hammer the bottom line. The company's business model relies on paying for content licenses up front, and then slowly making its money back through customer subscription fees. However, that means Netflix is currently losing money in many of its overseas markets – about $100-million a quarter from its United Kingdom and Latin America operations. Even in Canada, where Netflix constitutes the biggest single use of consumer Internet bandwidth, Netflix is only now starting to break even.
Netflix  Reed_Hastings  licensing  licensing_rights  subscriptions  streaming  web_video  challenges  opportunities  piracy  Omar_el_Akkad  competitive_landscape  digital_media  slight_edge 
september 2012 by jerryking
Changing a Recycling Company's Business Model, More Than Once - NYTimes.com
April 20, 2011, 7:00 am
How Many Business Models Can One Company Have?
By TOM SZAKY
TerraCycle  business_models  licensing  Outsourcing  green 
april 2011 by jerryking
Big Patent Firm Sues Nine Tech Firms - WSJ.com
DECEMBER 9, 2010 | | By DON CLARK And DIONNE SEARCE.
Intellectual Ventures LLC has started suing. The secretive firm
co-founded by former Microsoft Corp. CTO Nathan Myhrvold has raised $5
billion to amass thousands of patents over the past decade.

Unlike most specialists in the field, Intellectual Ventures has avoided
litigation, persuading big tech companies to become investors in his
firm—along with payments that sometimes came to hundreds of millions of
dollars....unable to secure payments from nine companies, Intellectual
Ventures announced three patent-infringement suits....Intellectual
Ventures, which is based in a Seattle suburb and claims 30,000 patents
and patent applications, is believed to have the largest portfolio among
firms that don't make or sell products. It claims to have earned nearly
$2 billion from licensing its patents
licensing  patents  Intellectual_Ventures  Nathan_Myhrvold  patent_trolls  Big_Tech 
december 2010 by jerryking
Netflix Faces New Competition in Streaming - NYTimes.com
Sept. 26, 2010 | NYT | VERNE G. KOPYTOFF. Netflix faces a no.
of well-financed & innovative companies e.g. Apple, Amazon, Google
as well as the CATV providers. This war will not be won by perfecting
the logistics of moving DVDs, but by whoever can best negotiate with
Hollywood studios..The weakness of the streaming service is movie
selection. Netflix’s catalog of 20K streaming movies does not include
many recent Hollywood hits because Netflix has been unable to negotiate
rights from all the studios....The industry is still very young &
many companies are experimenting with business models & expanding
their video libraries. Streaming requires less infrastructure &
therefore has lower barriers to entry than a system built on sorting
machines & distn. or even brick- &-mortar stores. Netflix earns
less $rev./cust. as streaming catches on because customers are
subscribing to less expensive plans, with fewer discs and unlimited
streaming. But the company is gaining subs. @ nearly 50 %/yr.
Netflix  Reed_Hastings  Hollywood  studios  competitive_landscape  streaming  licensing  business_models  YouTube  licensing_rights 
september 2010 by jerryking
Sung Joo Kim and MCM's Eastern Makeover - WSJ.com
MARCH 13, 2010 | Wall Street Journal | By ELVA RAMIREZ. MCM's Eastern Makeover
An ambitious South Korean businesswoman attempts to resurrect the faded luxury brand
fashion  South_Korean  entrepreneur  luxury  licensing  branding  turnarounds  retailers 
march 2010 by jerryking
A Ducati For Your Taste Buds
by Deidre Woollard (RSS feed) May 2nd 2008 at 4:02PM
Ducati  motorcycles  licensing 
december 2009 by jerryking
How to be a packager
Posted by Seth Godin on June 29, 2009

Seth was a book packager which has nothing to do with packaging and a bit more to do with books. It's a great gig and there are useful lessons, because there are dozens of industries just waiting for "packaging"....A book packager is like a movie producer, but for books. You invent an idea, find the content and the authors, find the publisher and manage the process. Book packagers make almanacs, illustrated books, series books for kids and the goofy one-off books you find at the cash register. Seth did everything from a line of almanacs to a book on spot and stain removal. It was terrific fun, and in a good year, a fine business.....there are advantages to this model (and not just for books).

First, the world needs packagers. Packagers that can find isolated assets and connect them in a way that creates value, at the same time that they put in the effort to actually ship the product out of the door. ...
Second, in many industries there are 'publishers' who need more products to sell. Any website with a lot of traffic and a shopping cart can benefit from someone who can assemble products that they can profitably sell. Apple uses the iPhone store to publish apps. It's not a perfect analogy, because they're not taking any financial risk, but the web is now creating a new sort of middleman who can cheaply sell a product to the end user. We also see this with Bed, Bath and Beyond commissioning products for their stores, or Trader Joe's doing it with food items.

Any time you can successfully bring together people who have a reputation or skill with people who sell things, you're creating value. If you find an appropriate scale, it can become a sustainable, profitable business.

The skills you bring to the table are vision, taste and a knack for seeing what's missing. You also have to be a project manager, a salesperson and the voice of reason, the person who brings the entire thing together and to market without it falling apart. Like so many of the businesses that are working now, it doesn't take much cash, it merely takes persistence and drive.

Here are some basic rules of thumb that I learned the hard way:

* It's much easier to sell to an industry that's used to buying. Books were a great place for me to start because book publishers are organized to buy projects from outsiders. It's hard enough to make the sale, way too hard to persuade the person that they should even consider entering the market. (PS stay away from the toy business).
* Earning the trust of the industry is critical. The tenth sale is a thousand times easier than the second one (the first one doesn't count... beginner's luck).
* Developing expertise or assets that are not easily copied is essential, otherwise you're just a middleman.
* Patience in earning the confidence of your suppliers (writers, brands, factories, freelancers) pays off.
* Don't overlook obvious connections. It may be obvious to you that Eddie Bauer should license its name and look to a car company, but it might not be to them.
* Get it in writing. Before you package up an idea for sale to a company that can bring it to market, make sure that all the parties you're representing acknowledge your role on paper.
* As the agent of change, you deserve the lion's share of the revenue, because you're doing most of the work and taking all of the risk. Agenting is a good gig, but that's not what I'm talking about.
* Stick with it. There's a Dip and it's huge. Lots of people start doing things like this, and most of them give up fairly quickly. It might take three or five years before the industry starts to rely on you.
* Work your way up. Don't start by trying to license the Transformers or Fergie. They won't trust a newbie and you wouldn't either.
Seth_Godin  howto  business_development  expertise  one-of-a-kind  licensing  patience  large_companies  voids  vision  persistence  change_agents  overlooked_opportunities  packaging  value_added  non-obvious  latent  hidden  information_synthesis  creating_valuable_content 
july 2009 by jerryking

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