How Far Funny Or Die Has Come From Its Viral-Video Days

Thanks so much for having me. Now, you've been CEO over the past few years, but you've been at the company for how long? Total ten years? So I was hired as the first producer in the summer of two thousand eight, and I would imagine you have seen this company go through a lot of changes over that time. I have. You know, It's cool because I think, you know, intrinsically,

in our DNA, we're still the same company. In turn, is of just wanting to say yes, moving really quick, wanting to work with great talent and do different things that are you know, I think, a little bit left of center, but still pretty accessible. Um. But yeah, obviously the world of media has changed, that the digital world has changed. And I think it's a testament to our team and and everyone that has really bought in that we've been able to evolve so successfully. And I think

that illusion is still going on. You know, we were just talking me like, you cannot stay static in any capacity, and I think you know the challenge that we always try and embraces. How do you continue to evolve but keep your priorities and discipline in place so that you can really capitalize on on what you're good at and that team that's working with you. As I mentioned off the top, Will Ferrell, he is one of the co founders.

You've got some other famous names in there. How active are these people in your day to day as you manage to their credit their very act I actually have to leave here to go have a meeting with Will. We are we did a big Rose Parade, especially as this character Cord Hosenbeck, and so we did the Rose Parade with Amazon, and we did the Royal Wedding with HBO. And so we are having lunch this afternoon to move with with other folks who are working on it, to

talk through Rose Parade. Uh, so you know all those guys you know, they have a you know, they have a lot going on. We all have a lot going on, but they are always so willing to help out and have good ideas, and I keep them posted. But you know, they'll come to board meetings, We'll have calls and and I think they're just so excited about what's going on

and the direction that we're going. But they're also patient and they know that, you know, the world is continuing to change, and I think they like the adjustments that we've made. And and yeah, man, they're all in well encapsulate what the direction and what the adjustments are. Because we go back eleven years ago, Funnier Died very famously burst onto the scene with those videos of Will and celebrities. But it feels like Funnier Die has become so much

more than that. Well, thanks it has. But what we're really focused on. We have two pillars in the company, digital and long form, and and digital now means something different than it just meant when we were cranking out all the viral videos. That was fantastic because it helped establish the brand. And we have a really strong consumer facing brand and we have I think, like prior over forty million followers on social media, and it's it's a young group that we have a lot of credibility with.

But you know, that wasn't always a great business um and that was the error of all these digital publishers having these like massive valuations, but they weren't totally built on a lot more than potential. And because we still are an independent company and a startup in that way, I think we've evolved in the ways and what digital means and and now what it really means is a focus on the custom campaigns that we make for brand partners. Uh.

That could be a company like Kroger. We just did a few videos with Jeff Goldblum, a cooking series with him that's that's really funny. I could also mean a partner like IMDb. We just did ah. I think we've done five or six imdbms, which was based on an

original video that Jake Samanski came up with. And so what we've been able to do is really focus what we're good at and bringing cool talent in front of and behind the camera, just like we were doing just like when it was for fun, keep it fun, but also have just a more thoughtful business approach on how to differentiate ourselves in a very very crowded digital landscape. Uh.

And then the second pillar, long form. We've just been very fortunate to diversify into long form television, movies, specials series in a way that just happened really organically. We've always just had that relationship with the talent community that it felt like a natural level Susan, And so I think that's really the focus. There are so many things going on, and you have to be really smart to just not focus too much on the shiny new thing

that comes along. Um. But I think what makes us unique is that digital business, which is now really robust. I think, like I said, I think we've done probably forty or so of those deals just this year. And then the long form side, we have almost twenty projects in production or prepped or offers to to script them. Um. And that's where I think we're really going to focus and move on. So we're not just a production company, We're not just a media company. UM, We're both of

those things. Why be in both? Why must given the challenges of the digital media business, why even bother with videos and social when isn't really what keeps the lights on and what gets you toward a profit is long form, yes and no that they have. They're two totally different business models. So long form is great because we produce all of our shows, all that revenue flows through the company. But the margins, as you know, in television are are

much lower. The digital media margins um are much higher because we're able to leverage the brand, the audience and our ability to make really custom content, and brands are spending more and more money on on these types of programs UM. So I really believe that's what differentiates ourselves there. There's there's lots of great companies out there, There's lots

of people doing interesting things. I think we're unique in the fact that we have both sides of those business is really working well, and then we have this marketing arm that's kind of a really cool tie that binds

the two together. So we've always done viral videos for brand partners, but now it's gotten a lot more thoughtful in terms of the social content we can make, the live activations we can do UM on lots of our series like American Vandal, will will be hired to to market those series, not just for the launch, but throughout the entire run of the season. Um and I think those are the things that we've really decided to focus on that can leverage our past, but really thoughtfully put

us in a position to succeed in the future. So Funnier Die is a brand that still matters because for a lot of production companies, and I know you're saying you're not strictly one, they don't even think about, you know, the brand. It absolutely it matters. It's it's the best thing that we have going for us. UM. It helps you on the long form side too. Absolutely, it attracts creators. The buyers were fortunate we have series set up at

all of different cable companies and streaming companies. Uh. They all want to tap into that audience for the marketing because there's a ton of content out there. You you need to be able to peg it to something. And because we have this audience in this relationship and this credibility with them, I think that's something. You know, a show like American Vandal is really benefited from. I think Mayer, our show for if C, has has done great with that.

I Love You America, which is going to be premiering next week. We've done a lot of social for Hulu you haven't done a lot of social and digital content for Hulu and so whenever, I mean, you don't want to be too thirsty about it and like force anything, but at the same time, it's it. It's the brand that has attracted so many comedians to us from the beginning.

It's they they still you know, so many people still aspire to be like Will Ferrell and Adam McKay and Judd Apataw And we've always done a great job of working with the big names and the up and coming names and everyone in between. Um, So that and taking care of that brand is really important. That's that's another thing you have to really have a lot of touch

with because you want to have a great business. You want to have an honest business that really delivers for partners, but you also want to carry on the sensibility that our founders and all the people have created content for us over the years have helped cement. So that's always a little bit of a balance and a little bit

of a of a juggling act. But it comes down to the people that you have and having a really firm sense of what the identity is and what everyone's purposes so that they can go out and and you know, make the most of those opportunities. You mentioned partners and founders. You've got a lot of people that you have to look out for, from the Will Ferrell's, the Adam McKay's. Then you've got media companies that have ownership stakes, Turner AMC, HBO, you still have VC money that came in from the

very beginning. It's got to be quite a challenge to please a lot of people, and at the same time, you're it's funny to hear yourself describe yourself as a start up because you've been around for eleven years. So how do you manage all that? It's a good question. Um, I think the honest answer is it's a combination of having a really strong sense of where you're going, and

then you're rating your conversation for your audience. So whether I'm talking to the entire company or Will or Chairman Mark Quamie or new partners at a mcgeen concerta and Josh Sapan, Um, you you have to have a real strong conviction in what you do well and and what to focus on, what to say yes to, what to say no to, and then you do have to understand who you're talking to and frame things in a in a way that is always truthful, is positive, but it's

also realistic about the world that you're living in. UM And I think that I that's something that maybe comes a little bit naturally to me. But it's anything. It's like anything you have to like exercise those muscles. How you talk to talent is a little bit different than

how you talk to their representation. But you have to be consistent and you have to be transparent, so you never so and that's what makes it fun, you know, like you know the changes in our own company, the media landscape, and how to martial all of these amazingly talented people, whether they're famous people or you know, the folks who have just are summer interns. Maybe, UM, I just feel like that's a that that's why I'm still there.

But when you talk about Sequoia and I think about venture capital, they're typically known for having pretty limited patients. They want their return, they want their exit. Do you face that kind of pressure? We don't, UM. I think from the very beginning, because of the videos that Will and McKay and CRESSENTI and everyone made at the beginning, UM, we kind of came out of the gate so strong.

The brand became really well known. It became this cool company. UM. And the way those funds are and you probably know that they put a bunch of different companies together, and I may have to fact check myself, but I'm pretty sure like the fund we're in had linked In in it and and LinkedIn has gone on to do some pretty impressive things and maybe that provided a little bit of cover for us, UM, But I think, you know,

that's one of the things. You know, the point of view for the Silicon Valley world and startups is different from a creator, is different from traditional media. And making all of those different voices make you know, music that people want to listen to, is is one of the challenges UM. But it also it truly is what makes it exciting and and creating wind winds and all those different spaces. I think is how we've been able to

be so resilient as the world changes around us. Like a lot of digital media companies, you guys, though, have taken your lumps. There has been layoffs in recent years that you've had to do in Are you okay with where your company is at? Is it financially healthy? Because we're seeing no one, you know, BuzzFeed vice from the biggest in this space, is immune to how tough digital media can be. Yeah, it's not for the fan of

heart digital publishing. UM, and I do feel good about I'm guessing everyone comes on here and tells you how great they feel about the things that they're doing. Um. It's since here though, we've learned a lot over the last few years. Not everything we've done has worked, um, but more and more. It's just about that focus on

the things that can differentiate ourselves. And um, you know, because of our partnership, the investment that AMC made in us a few years ago, we have well that's the main reason we well there's lots of reasons to that deal, but was was so great about it was it gave us the resources to really bet on ourselves and to double down on the talent and the people that we knew would be able to kind of break through. Because

the world is continuing to come to us. If you're able to make really great stuff, premium con tent with great talent and our ability to have done short form, mid form, long form, social, live specials, movies, you name it, we're kind of playing in those areas. Um, I'm really confident that if we continue to run the business thoughtfully and keep extending the game, and maybe when I'm back here in two or three years, we're a fourteen year

old startup and that be fine. If we're able to run the business that we want to run and make the types of content that we want to make, that that's totally great. If there is an opportunity for a company to look at us and and we could can we could grow more so within the within a larger company, that's something we could explore to but we're not seeking that out. And if we were trying to do that. The whole key is to go in there with a ton of momentum and a ton of focus so that

you don't get lost in the shuffle. And when you don't just become like, you know, a logo on a business card, but you become a real, you know, comedy engine, and that can create comedy solutions for one of these massive streaming companies or emerging companies. That does get exciting, but you gotta you can't focus on that, and you can't you can't worry about that stuff. You gotta you gotta just make good stuff, take the opportunity to scale when they when they occur, um And as you were

saying before, I trust the process. When you talk about the potential for acquisition, though, it brings to mind that everyone these days is talking about consolidation just seems to be something that is really gripping the media sector right now. I mean, what is your take and not even necessarily just speaking to fund of your diet, you said it could happen, it couldn't happen. Uh, But as you look at the broader landscape, do you look at consolidation and

see it as an inevitability for a lot of companies. Yes. I think it's the nature of of media and it's just the history of media. And I think now some of the some of the new players, whether it's Netflix or Amazon or think Disney, which is massive, but also they're launching their streaming platform. Apple is going to have their product out next year. Um, Jeffrey Katzenberg is launching

an entire new platform. My instinct is that there was we were kind of at the tail end of this massive digital disruption UM and I think the amounts of money that these companies are able to spend because of subscription and their direct relationship to UH their consumers in a way that traditional media has never had as as as as firm as a grasp as they do. I do think you're gonna see more and more consolidation, and and that's why I like the position that we're in.

If if we can keep doing what we're doing and have more and more success, then who is that partner? Because for me, yeah, I've been there ten years. I want Funniered Eye to matter in thirty forty fifty years from nowhere. None of us are in this just for

like a quick exit. We we we care tremendously about the company and the people that work there, and and that's why making those changes that you alluded to earlier it was really tough, um, but we did it because we had to put ourselves in a position to really, um you know, get through this period, UH to to the next period, which I think will involve consolidation, if

it's with us or without us. The main thing for us is just to run a great company, great content, great business, thoughtfully done and see where the path emerges. I mean I've been a little I've been a little doom and gloom as I talked about digital media. But on the other hand, Pete TV, I would imagine that this era where there's just so many buyers out there buying a lot of content, particularly on the streaming side,

that's got to be great for you. And you seem to be doing just business with just about everyone on that front. It's been very positive to for us. UM. Nothing's easy, you know, because you really have to have a great idea and great talent and a great package to really cut through and get you know, straight to series orders, and we've been fortunate to do a lot

of that UM. But yeah, us our ability to diversify into long form much earlier than a lot of other digital publishers just because of our Hollywood roots has really paid off. And I remember there there are times that even internally people are wondering why we are so focused on TV because the margins were so different than what

we were getting on the digital side. But now the some of these two pillars, digital and long form is what makes us UM special and I think we we we will continue to build that out and maybe there's some opportunities to scale that, you know, scaling talent driven you know, series is not always the easiest thing. Um. But we're fortunate to have, like I said, almost twenty

different projects in production prep coming back writing. UM, and I think that's a testament to the team and the power of the brand and the creators that were fortunate to work with m We've talked about TV, but another front that you guys have been somewhat active in was virtual reality. Last I saw you a few years ago, you guys produced this virtual reality yeah, which one a

Peabody along with American Vandals. Was super cool. I came in a skeptic, thinking virtual reality programming in any sort of long form way, how does that work? And yet I watched this uh meub and it was like watching a good sitcom and except reinvented for a different medium. Are you still going down that road? Are you still interested in what virtual reality could be? Um? Yes, that was a great experience and partner in with Felix and Paul was really tremendous. And owen Burke wrote a great

script and they they they are really the experts. UM. For us, it's more knowing where's an opportunity for our sensibility and comedy to make a difference. Uh And is that does that make financial sense to pursue and then doing it as well as possible. So I wouldn't say we're talking every day about what we can be doing in VR, but I think that's just an example of how we're able to stretch and extend these comedy muscles

in so many effective ways. Um. And whether it's it's that or some of the other projects that we have coming up, it's it's really what's the win win. Can we do something cool with creators? That's a good business move. That isn't just because you always want to build the brand, but now we're established in a way that you want to, you know, really be spending your time on things that you think can move the needle. So in that case, it was great that our first main focus on VR

was able to resonate. So well, what is it like being in the comedy business? In seeing Away? Late Night has been completely re energized, talk shows, things are obviously getting very political. We're does Funnier Dice sit in that landscape? That's a good question. Um, It's a great time to be in comedy. There is a lot of it out there. I think where we sit is our ability to make surprising comedy with really cool talent that whether it has a huge marketing campaign or just comes out of nowhere

like American Vandal, can really break through the noise. And there's a lot of talented people. We're not the only one is doing it. But I think what's unique about us is, you know, we had three Emmy nominations this year, and it was so cool to have it be for Digital with Gay of Thrones writing for American Vandal, and

I Love You America Sarah Silvan show in Variety. And I think that cross section really kind of speaks to us being able to matter in those areas um and so it's also a great time for young, diverse, impactful voices, and there is a massive there's just a massive new wave coming and I really challenge everyone had funniered Eye to to know these guys and girls and these writers and these comedians and these directors who you know. I mean, I went to a comedy show called Tasteful that Jack

Knight and Lankston kerman Um put together. Uh and the lineup they had it was at a was at a ice cream place in Koreatown. There were probably I don't know two d and fifty of just the most beautiful, diverse young comedy fans. They're hanging on every word and it's um, it's coming fast. And when people's ability, you know, to promote themselves on social media, on podcasts, and and that that curve that used to maybe take you know, ten twelve years, I think is being shrunk down in

a real way. And I want fun your eye to help them shrink down that curve even more because of the opportunities that we can create for people. And so are is your company the complexion of your company changing? Is there more diversity? Because it sounds like what you're saying is diversity. It just makes good business sense given the changing audience out there. One UM, the complexion of the company has changed. That's one of the great things.

It's so funny because lots of people talk about diversity and inclusion. Uh, it doesn't happen overnight. But when you're in a position like I am, and you have the support of the people behind you, you really can implement real change. And so our goal at a company is to have a company that reflects the demographics of the

United States. UM and and and male female diversity. Uh, you know, everything that you know historically has been less prioritized in the world of comedy, and so yes, I will be the one million person to say, you know, it's good for business. Uh, it's good for the world and and it's how you that's how you really future proof, right. You need you want folks who are have a shared sensibility,

you know. And it's okay if I don't find that twenty two year old you know kids super funny like, that's fine, but we need to have the people at at winiar I who are out there building those relationships and and representing all the different opportunities that we can help these great young comedians find on themselves, find with us something they can do on their own summit helps

the partner up with us and go on that journey together. Um. So I'm really proud of that, and it's something we will continue to work on, uh and really hopefully set a very high bar for one last question, can you think of an example of something either on the short form or the long form side of what you guys are doing that is a comedy property we should keep an eye out for that you think had his big things ahead of it. One of the things that I'm

really excited about is. We incubated an app at funniered

Eye called Pitch. It was created by Matt Kleman, who is a former funniered Ee an Onion writer, and what that has become is the world's largest online community of professional comedy writers and funnier Die, the Onion host of different partners are tapping into that community for really really good comedy content and jokes, and those writers are actually paid directly within the app as their jokes kind of like rise to the top based on how the community

feels about it. And I can't and it's going to be announced very soon, but we did a transformational what could be a transformational deal with a massive audio platform for daily audible content powered by Pitch, and that's something.

If that thing takes off for Pitch and funnier Die to help power UH an entire new comedy platform and channel for creators and stand ups to get paid for their topical content, that's something that could that could be great for our business, that could be great for just the community of creators out there. Hopefully it'll be great for the partner that we have, and and that's something that if we if we get that right, that's something that could really make a difference out in the world. Well,

I look forward to seeing how that does. Thanks appreciate you coming in, Mike, Thanks for having me, Thanks for tuning into another episode of Strictly Business. Come back next week for another podcast and should we sit down with some of the brightest minds and entertainment And if you like what we're doing, even if you don't like it, be sure to tell us in the comments section or just shoot an email over to Podcasts at Variety dot com.