  {"id":2749,"date":"2015-12-07T23:33:08","date_gmt":"2015-12-08T04:33:08","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/how-empire-created-its-empire\/"},"modified":"2015-12-07T23:43:59","modified_gmt":"2015-12-08T04:43:59","slug":"how-empire-created-its-empire","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/how-empire-created-its-empire\/","title":{"rendered":"How Empire Created Its Empire"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p style=\"text-align: center\"><em>&#8220;The streets aren&#8217;t made for everybody. That&#8217;s why they made sidewalks.&#8221;<\/em> \u2014 Cookie Lyons<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/empire-cookie-gif.gif\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2758 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/empire-cookie-gif.gif\" alt=\"empire-cookie-gif\" width=\"500\" height=\"300\" \/><\/a><\/p>\n<p>So goes one of Cookie Lyons\u2019s most memorable quotes from FOX\u2019s breakout television show, <em>Empire<\/em>, and so goes the precipitous demise of broadcast television, with an estimated 16% of broadcast television viewers leaving for streaming, and other digital media every year.<sup>1<\/sup> But whereas most new shows experience lukewarm returns on investment at best, <em>Empire<\/em> has managed to break ratings records and cultural boundaries.<\/p>\n<p>In its first season, <em>Empire<\/em> became broadcast television\u2019s #1 new show and #1 scripted broadcast program, the first show to do so since Grey\u2019s Anatomy over a decade before, and the first &#8211; and most profitable &#8211; show in history to do so with a predominantly black cast.<sup>2<\/sup><\/p>\n<p>A large part of <em>Empire<\/em>\u2019s success can be traced back to its creators\u2019 and network\u2019s expanded view of the television show\u2019s business model.<\/p>\n<ul>\n<li><strong>Ratings and Marketing $<\/strong> \u2013 At its core, <em>Empire<\/em> is a business that strives to create a bold scripted drama that appeals to a broad audience by maximizing ratings, which advertisers use as a benchmark for where to place their marketing dollars. <em>Empire<\/em> has tapped into a relatively \u2018untapped\u2019 market of viewers \u2013 and in turn a relatively \u2018untapped\u2019 demographic for advertisers \u2013 with an audience over-indexing on African-American viewers.<sup>3<\/sup><\/li>\n<\/ul>\n<ul>\n<li><strong>Record Sales<\/strong> \u2013 By virtue of <em>Empire<\/em> being a drama about the music industry, the program has expanded the traditional television business model to include sales of the music created and performed on the show. Columbia Records releases weekly soundtracks on iTunes, and an \u201cofficial soundtrack\u201d of the show at the end of the season.<sup>3<\/sup> Singles from the show have risen as high as #4 on the iTunes chart, and have even secured some actors record deals of their own.<sup>4<\/sup><\/li>\n<\/ul>\n<ul>\n<li><strong>Corporate Sponsorships<\/strong> \u2013 Lastly in <em>Empire<\/em>\u2019s business model, an additional revenue stream that the program has created involves corporate sponsorships with PepsiCo and Lincoln Motor Company.<sup>6<\/sup> While the monetary details of these deals aren\u2019t public, deals similar to PepsiCo and Lincoln\u2019s that involve product placement and prominent corporate integration into the program have been estimated to be valued at as much as $100M.<sup>7<\/sup><\/li>\n<\/ul>\n<p>Empire has been able to deliver on its business model in a way that arguably no other show on television has through its operating model, that marries the creative and business inner-workings of the show.<\/p>\n<p><strong>Writing<\/strong> <strong>with a Diverse Perspective<\/strong><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2740 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic3.jpg\" alt=\"tom challenge_pic3\" width=\"701\" height=\"395\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic3.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic3-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic3-600x338.jpg 600w\" sizes=\"auto, (max-width: 701px) 100vw, 701px\" \/><\/a><\/p>\n<blockquote><p>In order to deliver on the show\u2019s primary focus of boosting ratings, <em>Empire<\/em> has relied on a unique writers\u2019 room. The <em>Empire<\/em> writers\u2019 room is first and foremost one of the most diverse working in television today \u2013 from race to gender to socioeconomic background to sexuality. Writers are encouraged to write from their own experiences, which in turn creates a program that is powerfully relevant, addressing issues including racism, homophobia, spirituality, and mental illness.<\/p>\n<p>Additionally, <em>Empire<\/em> has a process style unique to writers\u2019 rooms in Hollywood. When starting on scripts for new episodes, writers pitch ideas for new storylines. To encourage a wide start of their innovation funnel, instead of the normal free-pitch format that most writers\u2019 rooms adopt, the <em>Empire<\/em> writing room is structured to rotate the first-pitch opportunity at the start of every brainstorm, with the youngest staff member kicking off the season. As staff writer Damilare Sonoiki (currently the youngest writer on the <em>Empire <\/em>staff) describes, \u201cThese guys are brilliant \u2013 with Lee Daniels sitting at the head of the table? I could have easily \u2018put up\u2019 or \u2018shut up,\u2019 but I had to \u2018put up\u2019 on day one.\u201d<sup>8<\/sup><\/p>\n<p>Combined, these operational decisions make for a broad and timely perspective that is often cited as a defining ratings-driver for the show.<sup>9<\/sup><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p><strong>Music as a Forethought<\/strong><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2741 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic4.jpg\" alt=\"tom challenge_pic4\" width=\"667\" height=\"444\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic4.jpg 529w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic4-300x200.jpg 300w\" sizes=\"auto, (max-width: 667px) 100vw, 667px\" \/><\/a><\/p>\n<blockquote><p>With music playing such a central role in <em>Empire<\/em>, the show\u2019s producers brought in respected talent to lead the music production group, and transformed the placement of music production in the show\u2019s creative process timeline.<\/p>\n<p>Show creator Lee Daniels\u2019s music choice is self-described as \u201cdated,\u201d<sup>10<\/sup> and as such, chose to bring in famed musician and producer Timbaland to lead the show\u2019s music production team. Whereas music production typically falls at the tail end of a television show\u2019s production, Timbaland and team are brought in towards the beginning of an episode\u2019s creative process, collaborating with the writing team to get an idea of the plot from the onset so they can create music that fits the theme.<sup>11<\/sup> By creating a sort of parallel process, <em>Empire<\/em> is able to allow its creative minds more time and fluidity in building their product, and creates an optimal product for the program itself \u2013 which boosts ratings, and corporate sponsorship potential \u2013 and also creates high quality music for the show that can then be translated into additional record sale revenue.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p><strong>Product\/Story\u00a0Integration<\/strong><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic5.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2742 aligncenter\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic5.jpg\" alt=\"tom challenge_pic5\" width=\"676\" height=\"429\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic5.jpg 860w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic5-300x190.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/tom-challenge_pic5-600x381.jpg 600w\" sizes=\"auto, (max-width: 676px) 100vw, 676px\" \/><\/a><\/p>\n<blockquote><p>The Fox Advertising and Sales Group shifted focus from their traditional ad placement sales to include sales for strategic alliances with companies like PepsiCo, in order to boost the corporate sponsorship arm of its business plan. The group worked with the creative team to craft for sponsor PepsiCo its own story arc. In Season 2, Episode 8, one of the stars of the show competes to become the next face of Pepsi. Two episodes later, when he\u2019s about to show his new ad, the show immediately cuts to an actual commercial break and seamlessly shows the new PepsiCo ad across television screens, VOD screens, and streaming services alike.<sup>12<\/sup> This level of product integration creates altogether appealing corporate sponsorship opportunities unlike anything seen before in the industry.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p><em>Empire<\/em> has fundamentally changed the way entertainment companies view television business models. While business in television once solely meant ratings and advertiser revenues, production companies are quickly finding that by combining creative and business elements, programs can create operating models that allow their television businesses to flourish.<\/p>\n<p>As Hakeem Lyons says, &#8220;I don&#8217;t wanna win the game. I wanna change it.\u201d<sup>13<\/sup><\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/empire-dinner-gif-1.gif\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2763\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/empire-dinner-gif-1.gif\" alt=\"empire-dinner-gif-1\" width=\"590\" height=\"349\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Sources:<\/p>\n<p><a href=\"http:\/\/www.ibtimes.com\/broadcast-cable-tv-ratings-keep-declining-viacom-ae-struggles-underscore-industry-1969568\">http:\/\/www.ibtimes.com\/broadcast-cable-tv-ratings-keep-declining-viacom-ae-struggles-underscore-industry-1969568<\/a><\/p>\n<p><a href=\"http:\/\/tvbythenumbers.zap2it.com\/2015\/01\/22\/empires-the-first-high-rated-new-drama-to-grow-in-both-weeks-2-3-in-21-years\/354601\/\">http:\/\/tvbythenumbers.zap2it.com\/2015\/01\/22\/empires-the-first-high-rated-new-drama-to-grow-in-both-weeks-2-3-in-21-years\/354601\/<\/a><\/p>\n<p><a href=\"http:\/\/money.cnn.com\/2015\/01\/22\/media\/fox-empire-ratings-hit\/?iid=EL\">http:\/\/money.cnn.com\/2015\/01\/22\/media\/fox-empire-ratings-hit\/?iid=EL<\/a><\/p>\n<p><a href=\"http:\/\/www.latimes.com\/entertainment\/envelope\/emmys\/la-en-st-empire-game-changer-20150604-story.html\">http:\/\/www.latimes.com\/entertainment\/envelope\/emmys\/la-en-st-empire-game-changer-20150604-story.html<\/a><\/p>\n<p><a href=\"http:\/\/www.ew.com\/article\/2015\/03\/05\/empire-has-first-big-musical-hit-jussie-smollett-and-estelles-conqueror-hits-no-4\">http:\/\/www.ew.com\/article\/2015\/03\/05\/empire-has-first-big-musical-hit-jussie-smollett-and-estelles-conqueror-hits-no-4<\/a><\/p>\n<p><a href=\"http:\/\/tvbythenumbers.zap2it.com\/2015\/08\/24\/lincoln-and-pepsi-to-serve-as-official-sponsors-of-season-two-of-empire\/\">http:\/\/tvbythenumbers.zap2it.com\/2015\/08\/24\/lincoln-and-pepsi-to-serve-as-official-sponsors-of-season-two-of-empire\/<\/a><\/p>\n<p><a href=\"http:\/\/abcnews.go.com\/Business\/story?id=86272&amp;page=1\">http:\/\/abcnews.go.com\/Business\/story?id=86272&amp;page=1<\/a><\/p>\n<p>Phone Interview with Damilare Sonoiki, December 2<sup>nd<\/sup>, 2015<\/p>\n<p><a href=\"http:\/\/zap2it.com\/2015\/09\/4-reasons-empire-is-a-roaring-success\/\">http:\/\/zap2it.com\/2015\/09\/4-reasons-empire-is-a-roaring-success\/<\/a><\/p>\n<p><a href=\"http:\/\/www.ew.com\/article\/2015\/01\/07\/empire-fox-lee-daniels\">http:\/\/www.ew.com\/article\/2015\/01\/07\/empire-fox-lee-daniels<\/a><\/p>\n<p><a href=\"http:\/\/www.nytimes.com\/2015\/01\/28\/business\/media\/empire-may-provide-fox-the-big-hit-it-needs.html\">http:\/\/www.nytimes.com\/2015\/01\/28\/business\/media\/empire-may-provide-fox-the-big-hit-it-needs.html<\/a><\/p>\n<p><a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-11-19\/how-pepsi-got-its-very-own-empire-story-arc\">http:\/\/www.bloomberg.com\/news\/articles\/2015-11-19\/how-pepsi-got-its-very-own-empire-story-arc<\/a><\/p>\n<p><a href=\"http:\/\/www.hollywoodreporter.com\/live-feed\/empire-greatest-quotes-779940\">http:\/\/www.hollywoodreporter.com\/live-feed\/empire-greatest-quotes-779940<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FOX&#039;s Empire is changing what it means to be a business in entertainment<\/p>\n","protected":false},"author":499,"featured_media":2750,"comment_status":"open","ping_status":"closed","template":"","categories":[144,145,249,518,336,7],"class_list":["post-2749","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-entertainment","category-media","category-music","category-television","category-tom-winners","category-winner"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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Henson as Cookie Lyon and Ta'Rhonda Jones as Porsha on EMPIRE Season 2 premiering Wednesday, September 23 (9:00-10:00 PM ET\\\/PT) on FOX. \u00a92015 Fox Broadcasting Co. 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Henson as Cookie Lyon and Ta'Rhonda Jones as Porsha on EMPIRE Season 2 premiering Wednesday, September 23 (9:00-10:00 PM ET\/PT) on FOX. \u00a92015 Fox Broadcasting Co. 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