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Foreign. Hey, welcome to the trapital podcast. I'm your host, Dan Runcy. This week, there's no interview. This is going to be a live reading of the most recent essay that I'd written on Will and Jada Pinkett Smith and what they've built with Westbrook, Inc. If you see my newsletter, then you know that this is the longest essay that I've written for Trapital, almost 2,400 words. So it's just a little bit longer than that Tyler Perry essay that I had done. And I've been hyping it up for a while. But you gotta get it right. And I'm glad that it finally came through. And the response so far has been great. I put this out on Monday and so far it's gotten tens of thousands of views. Email open rate well over 50%. People are sharing it everywhere and it's definitely resonating with the right folks. And I think it's because it's hitting a few timely trends in media, in content, in commerce. And even though Chapital covers the business of hip hop, I do like to step partially outside of hip hop with what's happening overall in entertainment because there's just so much relevant, especially that the Smiths are doing that are completely and directly tied to what's happening right now in hip hop. Like when they say that every company is a media company right now, this is exactly what they're talking about. This is why I wrote the piece and this is why I put the effort into making sure that this was right. I think anyone that puts, creates, or puts any content out there, there's always a bit of a risk, right? You can spend a ton of time on something. You don't always know what's gonna hit. This one, I had a feeling it was gonna hit. I'm glad it did. So I'm glad that I can now do the audio version of this so the people that haven't read it now can get it directly right to you. Here. Here is how Will and Jada Pinkett Smith built a content and commerce powerhouse in 2013. The Smith family was going through it. Will Smith and his son Jaden Smith's movie After Earth was a box office failure. Jada Pinkett Smith seemed much more interested in her heavy metal rock band than in Hollywood. And their daughter, Willow Smith had backed away from the spotlight after her hit single Whip My Hair. The timing couldn't be worse. The entertainment industry was changing fast. Social media became a force multiplier for the actors who knew how to use it. But the Smiths, a couple once known for their privacy, were getting left behind. Hollywood success is hard to maintain, especially for a middle aged black couple who rose to power on a 1990s playbook. Many assumed that Mr. And Mrs. Smith's best years were behind them. If anything, Jaden and Willow were the ones to watch. But Will and Jada went back to that drawing board in a few years. They bounced back like a cash money rapper that just got out of a horrible contract. Will can now drive box office results from his Instagram account. Jada's Red Table Talk can dominate social media with ease. And their businesses run in lockstep under Westbrook Inc. A cross platform holding company that runs the family's content and commerce. Their career resurgence is a lesson on how legacy talent can adapt to the times. A plan that was ripe for disruption in the early 90s. Will had it all figured out. The Fresh Prince of Bel Air star told his manager James Lasseter that he wanted to be the biggest movie star in the world. Lasseter and Smith looked at the 10 highest grossing movies of all time and identified three common themes. Special effects creatures and love stories. That focus led to films like Independence Day, Men in Black and many more. For each film, the actor manager duo targeted a different country to maximize international ticket sales. For instance, Bad Boys outperformed its overseas expectations by 15 times thanks to a targeted campaign at the Cannes Film festival in the 2000s. Will Smith had eight straight movies gross $100 million domestically in the box office. He was a box office cheat code who topped the Billboard charts in his spare time. Hollywood may never see a run like that again. Jada ran her own game and checked all the boxes too. She starred in black cinema classics like Menace to Society, Jason's Lyric and Set It Off. She did comedy blockbusters like the Nutty professor. And Jada even joined the horror flick wave with Scream 2. But only for the first 10 minutes because, well, you know, they kill all the black people first in all those scary movies. And even though Will turned down the lead role in the Matrix, Jada got a role in its sequels. But the Smiths plan was ripe for disruption. They thrived when an actor's name alone could sell movies. Back then, original screenplays like the Matrix could become tentpole franchises. Film studios took more risks. Even if a film had mediocre ticket sales, it could become a cult classic on vhs, DVD or get syndicated on cable tv. But the rise of the Internet, video streaming and cord cutting ate into that back end revenue. It became harder to greenlight the same movies Today's entertainment landscape has led to a bifurcation of content. Most movies fall in two big budget franchise films derived from proven intellectual property with worldwide popularity or art house projects from indie studios like a 24 original concept. Blockbusters like the ones Will Smith starred in are now few and far between. When Will and Jada first rose to power, attention was easier to command. The biggest online distractions were Napster and AOL Instant Messenger. But it soon became hard for the Private couple to keep up. The modern era favored social media influencers, reality TV stars and actors who brought fans behind the scenes. That wasn't Will and Jada, and the results showed movies like Seven Pounds, Concussion and Collateral Beauty could no longer rely on Will Smith's name to sell tickets. Meanwhile, Jada's movie star career soon became a TV career in the early 2000 and tens with roles in both Hawthorne and Gotham. If the Smiths wanted to reclaim that glory, the model had to change the Shift from Private to Prolific for years, Will Smith avoided social media because movie stars needed mystery and separation. In 2015, one of Will's only social posts was to confirm that he and Jada Pinkett Smith were still together. But eventually he studied how Dwayne the Rock Johnson used social media to become a modern day box office draw. The former WWE wrestler has a team who helps him post inspirational videos and entertaining content to engage followers when it's time to sell his movies. The Fast and Furious franchise star has a ready customer base and the studios pay him to spread the word. Here's a quote from a Forbes article. In addition to the hefty $20 million upfront paychecks and cut of back end studio profits, starting with July's Skyscraper in which he plays a former FBI hostage rescue leader, Johnson will insist on a separate seven figure social media fee with every movie in which he appears, according to people familiar with his deals. In other words, rather than have studios dump money into TV ads or billboards, they pay their new marketing channel doubles as their marquee star. That seven figure social media fee is a drop in the bucket. Studios spend nine figures to market the blockbusters that Johnson stars in, but the Rock's social media likely drives more revenue per dollar spent than any other distribution channel. It's a page right out of Tyler Perry's book the Medea Star. The Madea Creators email list was once his primary source to sell tickets to both plays and movies. In 2017, Will Smith adapted these rules for his career. He signed with Netflix to star in Bright, the entertainment company's first big budget film. It was the perfect opportunity to establish his online presence. Smith got help from CAA to assemble a social media team. When Bright debuted in December 2017, Will's social media came out the gates hot. He appeared on the Ellen show to announce that he had joined Instagram. His Instagram debut felt even bigger than Bright's debut. Two months later, Smith became the top actor on social media. According to Hollywood reporter, when Will Smith's Aladdin movie was announced in 2019, box office expectations were tepid. Disney's past live action remakes had mixed reviews and Aladdin's trailer got dragged for how Will Smith's Genie looked. But the Aladdin team prevailed. Smith used his socials to propel the movie to beat analysts predictions by over 50% at the domestic box office. Aladdin grossed over a billion dollars worldwide. Analysts estimate that 12 to 20% of all Aladdin trailers came from Will Smith's Instagram account. And since trailer views are a proxy for box office sales, Smith proved his impact. The connection between social media and viewership is even stronger now. The COVID 19 pandemic has accelerated the push for on demand access to movies that are still in their theatrical run. Will Smith's social media impact is a signal of the power shift from institutions to individuals. A similar shift happened in Silicon Valley. Amazon Web Services cut the cost for startups to get off the ground, which made it easier for founders to operate without the same reliance on venture capital. VC firms like Andreessen Horowitz leaned into this by elevating founders and getting them the best terms possible. The firm's strategy was inspired by CAA founder Michael Ovitz, whose talent agency led Hollywood's power shift from film studios to actors. Today's social media influence for both actors and founders is a natural evolution of that dynamic. Transparent content builds audience trust in 2017, Jada Pinkett Smith had a year of healing. The MeToo and Time's up movements were catalysts for her vulnerability and openness. The following year, she launched Red Table Talk, an unfiltered conversation series with herself, Willow, Jada's mother, Adrienne Banfield Norris, AKA Gammy, and celebrity guests. Jada chose to host it on Facebook Watch because the social media platform is built to get people talking and commenting, which is the goal of her show. Red Table Talk started as a hobby but soon became a force in media. In early episodes, Jada addressed a few never ending rumors about her and her husband. Were Jada and Will swingers? Was it an open marriage were they Scientologists? Did Jada and Gabrielle Union still got a little feud going. It was all on the table, literally. Jada put herself out there, which created content that got covered by all the aggregators, media publications and social media pundits. It all drove traffic back to her show. The show's first episode was a conversation between Jada and Will's ex wife Cherie Elizabeth Zampino, just to talk about how willing Jada was to put herself out there. Jada's transparency is the key ingredient. It's a shift from her once reserved public Persona. The Smiths still might not share all their entanglements unless forced to, but Jada's openness led other celebrities to join her at that table, including Jordyn woods and Kid Cudi. Red Table Talk's average viewership is now 14 million per show. Jada boosts Facebook Watch ratings like Serena Williams can boost ratings in a Grand Islam tennis match. Jada's deal with Facebook was signed in January 2020 and extends until the end of 2022. The series now includes a spin off series with Gloria Estefan and plans for international expansion. The show's success has been a launchpad for a line of e commerce products, Jada's Hey Human Personal Care Beauty company and more. From lowercase IP to Capital IP when good content can be produced fast, it's easy to capitalize on its potential if it takes off. Westbrook Media calls this fast lane intellectual property or flip. For instance, Will Smith's Bucket List was a popular Instagram account that led to a deal with Discovery Channel for its annual Shark Week. Jada's role as a healer in Red Table Talk led to a starring role in Red Zone, an upcoming Netflix film. Lowercase IP is content that is fast, cheap and easy to produce. The most successful lowercase IP becomes big budget capital IP which is sold to major distributors to maximize its reach. Here is a flywheel I drew that shows how it all relates. This is a visual so I'm going to describe the visual at the top. At the top of the flywheel, the more fast IP content is created then next is that leads to more followers which then leads to better data insights and then that trails off into two areas where one of those it leads to more products being sold, but it also leads to more big IP content that is then created from that data and insights which then leads to even more product sold which then leads to more fast paced lower case IP content and the cycle continues to expand from there. Highly recommend you check that out on the Trapital website if you get a chance. For instance, in 2020, Will started Will From Home, a snapshot series on Will's life in the early days of the COVID 19 quarantine. It soon became a testing ground for bigger projects. From the Hollywood Reporter Quote After Will hosted a virtual Fresh Prince reunion show during an episode of Will From Home, the Westbrook Media team realized they could turn that concept into something bigger. They pitched a 90 minute reunion special to Warner Media and executives seeking ways to promote that. HBO Max was still the extreme exclusive home for all six seasons of the 1990s sitcom, and it immediately bit that end quote. That reunion special for the Fresh Prince of Bel Air became an opportunity for Will to also address his 27 year long feud with Janet Hubert, the show's original Aunt Viv. The only thing missing was Jada's red table in that conversation. And when the reunion show dropped, the Fresh Prince of Bel Air released a merch store to capture the timely interest in the show. To further capitalize on the hit show's popularity, Peacock ordered two seasons of Bel Air, a new dramatized version of the sitcom, which came from a 2019 fan fiction short film. Fresh Prince is Westbrook Media's machine running on all cylinders. This is today's entertainment model. This is why Spotify and Chernin Entertainment announced a multi year first look partnership. Chernin film and TV production company now has access to Spotify Spotcast. It can bring the best ones to life on the big screen. This is also why drake drops smaller EPs and singles before he releases his albums. The most successful tracks influence the album's sound and are most likely to make the final cut. In both cases, lowercase IP is the farm system for capital IP build the audience, then sell the products. Social media has revived the Smiths entertainment careers, but it also upped their investment careers. In 2018, Will Smith launched Dreamers VC, a Los Angeles based venture capital firm. Here's Vic Sassi, a partner at Dreamers vc, in an interview with Entrepreneur's Handbook. We're living in this peak of influencer marketing right now in an environment where something like 30 to 40% of venture dollars trickle into Google and Facebook just given how much paid media these startups are spending on. So when you bring along an influencer, especially someone of Will's caliber, you can bring the marginal cost of acquiring a customer to zero if they do an Instagram post, mention you on their YouTube, etc. Every company wants to lower its customer acquisition cost, whether it's a film studio, an email, newsletter or a venture backed startup. This is why Audience first products have become popular. It's a relevant strategy for both an A list Hollywood actors production company, a superstar rapper, a company like Trapital, and everything in between. Here's a visual of how it looks for Westbrook. On the left side of the visual you have Jada and Will and them using social media to grow their audience. Whether it's a combination of Red Table Talk, Facebook, Twitter, Instagram, Snapchat and YouTube, they grow audiences that are separate but they do have some overlap just given the fact that they collaborate with each other. And then each of the each of the follow on businesses they have is an opportunity to sell products based on that massive audience. Whether that is Jada's Hey Humans skincare products, merch from the Red Table Store, any products or business related to the Fresh Prince reunion, tickets to Aladdin, tickets to Bad Boys for Life, and any portfolio companies, products and Dreamer VCs investments. It is all an opportunity to leverage this valuable audience that the Smith family has built in March 2020 in March 2021, Will told the Hollywood Reporter, quote, we've seen this company in our mind for decades. The artistic quality, the synergy of our team, the service and healing aspects of our content creat and the revolutionary approach across the board. They built the company, they wish it existed. If the 2001 version of Will and Jada Pinkett Smith met the 2021 version of Will and Jada, they would be shocked. Y' all just put your business out there. Why do you keep saying content? Do you live on that phone? But they would also be impressed. Like the characters they play in movies, Will and Jada overcame obstacles and found a way to stay on top of their transformation is remarkable. But before long they'll have to go back to that drawing board. The landscape keeps changing, now more than ever. And that's the essay. Hope you enjoyed it. If you want to check out those visuals, I highly recommend you go to the trapital website and you can check the essay out for yourself or type it in Google. You'll see it. Will and Jada Smith content Commerce Powerhouse. I guarantee you you will see the essay there as it comes up or or check your email inbox. If you are on the trapital email list, I'm sure you got it there. If you enjoyed this podcast, go ahead and share it with a friend. Copy the link, text it to a friend, post it in your group chat, post it in your slack groups. Wherever you and your people talk, spread the word. That's how trapital continues to grow and continues to reach the right people. And while you're at it, if you use Apple Podcasts, go ahead, rate the podcast, give it a high rating and leave a review. Tell people why you like the podcast that helps more people discover the show. Thank you in advance. Talk to you next week.