The Marketing Machine Behind Space Jam

Today’s guest post is written by my friend Dan Runcie, the founder of Trapital. Dan does an amazing job breaking down the business of hip-hop into simple, digestible terms. Enjoy!

Hey Friends,

I'm Dan Runcie, founder of Trapital, a media company that covers the business of hip-hop. Hip-hop culture is often ahead of the curve on trends that are now common in sports and business. Each week, I email 10K+ readers my free weekly memo so they can keep up with the latest moves.

On Wednesday, Joe gave you a great breakdown on LeBron James' SpringHill Company. It's perfect timing, I just interviewed SpringHill's Chief Content Officer Jamal Henderson on the Trapital Podcast. We talked about Space Jam: A New Legacy, the partnerships made around the movie, the company's future, and LeBron's role in the creator economy.

Space Jam is a case study on SpringHill's business model

The entertainment company's content is built on LeBron's brand. The programming highlights the Los Angeles Lakers star himself, the people who inspire him, the causes he cares about, and the content he loves.

SpringHill and Warner Bros leveraged his image, the IP from a popular 90s movie, and tons of brand partnerships to make this movie and commercialize it.

From a content perspective, it's SpringHill's biggest project yet. The film is a platform for several brand partnerships too. Here are the biggest ones:

• Microsoft Xbox: Microsoft released three exclusive Space Jam controllers and a new video game.

• Nike and Converse: an apparel collection featuring new sneakers, the LeBron 19s, LeBron 18 Lows, Air Force 1s in toddler sizes, and Chuck Taylors.

• McDonald's: SpringHill got Space Jam toys in Happy Meals—a place that's been held on lock by Disney and Marvel characters

• Fortnite: LeBron now has a Space Jam-themed skin in Fortnite

• Nifty: free Space Jam-inspired NFTs for up to 91,000 guests

And that's just a few! The marketing team was not playin' games. This is what Jamal Henderson does. He's a former Pepsi brand exec who worked on both Mountain Dew and Lipton.

Content and commerce working together

The marketing partnerships are an example of how content and commerce work in tandem. Movies can be sold to both studios and fans, but they're also a platform to sell other products. That platform will be more important as Hollywood navigates the best hybrid model to maximize both ticket sales and video streaming options.

SpringHill is one of several companies that is building its own version of the Disney synergy map, or a more recent version I drew last year about Issa Rae. But a good synergy strategy needs more than fancy diagrams with arrows pointing to boxes. Companies need connective tissue that draws it together for the brand.

For SpringHill, it's about empowerment. LeBron empowered Maverick Carter and Rich Paul. Maverick empowered Jamal to build out SpringHill to what it is today. Any future expansions for the company will tie back to that empowerment.

LeBron's role in the creator economy at scale

When folks think about the creator economy, they often think about podcasters, YouTubers, or newsletters like Huddle Up and Trapital. But the creator economy also applies to people like LeBron and companies like SpringHill.

His content is his NBA games, his interviews, and all the content released through SpringHill. His commerce is the brand partnerships, basketball revenue, and more. It's no surprise that he will become the NBA's first billion-dollar earner by the end of 2021.

Want more from Dan Runcie? In Monday's Trapital Memo he'll go in more depth about SpringHill's rumored sale, its $750 million valuation, and other updates from the business of hip-hop.

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