Michael Lewis: The NFL’s scarcity drives fan loyalty, why quality and exclusivity matter in podcasting, and how constraints fuel innovation | Acquired

Key Takeaways

• The scarcity of NFL games enhances their event-driven nature, boosting their overall value.
• Quality and scarcity are essential for building a successful podcast.
• Embracing constraints can lead to innovative and successful business models.
• Focusing on successful corporate acquisitions offers a unique perspective in journalism.
• Warren Buffett’s approach to deals has evolved, impacting his market perception.
• Having a “too hard pile” in decision-making allows for prioritizing high-value opportunities.
• Podcasting’s subscriber base ensures audience retention without algorithmic interference.
• Timeless content creation ensures episodes remain relevant over time.
• A compelling podcast episode requires a hero’s journey, a hidden secret, and global importance.
• External market conditions can significantly impact podcast revenue and strategy.
• The principle of timelessness in content creation maintains long-term relevance.
• The podcast’s strategic pivot was driven by a significant revenue drop.

Guest intro

Michael Lewis is a contributing editor at Vanity Fair and host of the Apple #1 rated podcast Against the Rules. He previously worked as a bond salesman at Salomon Brothers, an experience that inspired his bestselling book Liar’s Poker. His books, including Moneyball, The Big Short, and The Blind Side, have been adapted into major films.

The scarcity advantage in the NFL

• The NFL’s limited number of games creates a unique, event-driven experience.

• The product is scarce… with the NFL because the product is scarce and then they have very smartly cultivated that and engineered it to be more scarce more of an event driven sport that’s made all the difference

  — Michael Lewis

• Scarcity in sports can enhance consumer engagement and perceived value.
• The NFL’s strategy contrasts with other sports that have more frequent games.
• Event-driven sports can command higher attention and loyalty from fans.
• The NFL’s approach to scarcity has been a key factor in its success.
• Understanding scarcity can provide insights into successful business models.
• The NFL’s model demonstrates the power of creating anticipation and exclusivity.

Quality and scarcity in podcasting

• Quality and scarcity are vital components for a successful podcast.

• I think quality and scarcity have become an important part of acquired and in some ways we like learned that from Hermes.

  — Michael Lewis

• Scarcity can differentiate a podcast in a crowded market.
• High-quality content attracts and retains a loyal audience.
• Embracing scarcity can lead to a more focused and impactful content strategy.
• The balance of quality and scarcity can drive long-term success.
• Scarcity can create a sense of exclusivity and value for listeners.
• Learning from luxury brands can inform podcasting strategies.

Embracing constraints for innovation

• Constraints can lead to unique and successful business models.

• Maybe if we just admit that we are heavily constrained and then try to just lean into that constraint… it turned out to be a great business.

  — Michael Lewis

• Constraints can foster creativity and innovation in content production.
• Acknowledging limitations can lead to strategic breakthroughs.
• Constraints can force a focus on core strengths and priorities.
• Embracing constraints can lead to more authentic and distinctive content.
• Constraints can serve as a catalyst for innovation and differentiation.
• Leveraging limitations can result in a more resilient business model.

Positive focus in journalism

• Focusing on successful corporate acquisitions offers a unique perspective.

• It’s interesting to me that your first step right from the start is positive it’s like what worked not what didn’t work… let’s try to reverse engineer what works why things worked right so that’s a different starting spot from almost all journalism.

  — Michael Lewis

• Highlighting successes can provide valuable insights into business strategies.
• A positive focus contrasts with the typical journalistic emphasis on failures.
• This approach can inspire and inform audiences about effective practices.
• Positive storytelling can differentiate content in the media landscape.
• Success stories can offer lessons and frameworks for replication.
• A focus on achievements can shift perceptions and narratives in journalism.

Warren Buffett’s evolving approach

• Warren Buffett’s approach to deals has evolved over time.

• He may have started out being who he says he is but that he’s become this very different thing in the marketplace his money’s not like other people’s money.

  — Michael Lewis

• Buffett’s changing role reflects shifts in the financial market.
• His evolution impacts how he is perceived and his influence in deals.
• Understanding Buffett’s approach can provide insights into market dynamics.
• His strategies highlight the importance of adaptation in business.
• Buffett’s evolution underscores the need for flexibility in investment approaches.
• Observing his changes can inform strategic decision-making in finance.

Decision-making and opportunity cost

• It’s acceptable to have a “too hard pile” in decision-making.

• The too hard pile means means no technology was a too hard pile… it’s basically admitting that like our opportunity cost is so high like the the things that we say yes to are so awesome that it’s okay to say too hard to just a giant amount of things.

  — Michael Lewis

• Prioritizing opportunities based on potential value is crucial.
• The “too hard pile” concept helps focus on high-impact opportunities.
• This approach acknowledges the high opportunity cost of pursuing certain paths.
• Strategic decision-making involves recognizing when to pass on opportunities.
• The concept highlights the importance of prioritization in business.
• Understanding opportunity cost can enhance strategic focus and efficiency.

Podcasting’s unique subscriber base

• Podcasting has a unique subscriber base that ensures audience retention.

• Podcasts are unique in that it does have that true subscriber base but unlike anything else where you click subscribe there’s not an algorithmic platform that disintermediates you.

  — Michael Lewis

• The lack of algorithmic interference differentiates podcasting from other platforms.
• Subscriber loyalty is a key strength of podcasting.
• Podcasts can build direct relationships with their audience.
• The platform’s structure supports consistent engagement and retention.
• Podcasting’s model allows for more control over content distribution.
• Understanding this dynamic can inform strategies for audience growth.

Timelessness in content creation

• The principle of timelessness ensures episodes remain relevant.

• Everything we do must be timeless… we want to be worth 80% of our original value five years from now on a given piece of content.

  — Michael Lewis

• Timeless content maintains its value over time.
• This approach prioritizes long-term relevance over short-term trends.
• Creating timeless content can enhance a podcast’s longevity and impact.
• The focus on timelessness can differentiate content in a fast-paced media environment.
• Timeless content supports sustained audience engagement and interest.
• This principle can guide strategic content planning and production.

Elements of a compelling podcast episode

• Three key elements make a compelling podcast episode.

• There’s three things that make a great acquired episode one there’s a compelling hero protagonist that takes a hero’s journey where we’re going from obscurity to ubiquity… two is there’s a secret hiding in plain sight… and our third criteria is it has to be important in the world.

  — Michael Lewis

• A hero’s journey narrative enhances storytelling and engagement.
• The presence of a hidden secret adds intrigue and depth.
• Global importance ensures the episode’s relevance and impact.
• These criteria guide the selection of podcast topics and narratives.
• Understanding these elements can enhance content creation strategies.
• This framework supports the development of meaningful and engaging episodes.

Strategic pivot in response to revenue drop

• The podcast’s revenue drop led to a strategic pivot in content focus.

• 22 FTX happens interest rates go up you know podcast advertising market falls off a cliff our revenue dropped 40% so we went from this wasn’t a business I went full time we made it a business it worked amazingly well from ’20 to ’22 to ’20 from ’20 to ’21 into ’22 right and then our revenue dropped 40% right overnight and that was the moment when we changed everything.

  — Michael Lewis

• External market conditions significantly impacted podcast revenue.
• The revenue drop necessitated a reevaluation of content strategy.
• Strategic pivots can be essential in response to changing market dynamics.
• Understanding market conditions can inform proactive strategic planning.
• The experience highlights the importance of adaptability in business operations.
• Revenue fluctuations can drive innovation and strategic shifts in focus.