NYT is now a gaming company – in terms of time spent by users.
Business & Brands
The NYT’s purchase of Wordle, as Shane O Leary puts it, had a “rising tide lifts all boats effect on their gaming vertical.” It brought in tens of millions of people to the app and doubled the number of weekly users for non Wordle games.
Nike started out as a running shoe manufacturer, long before it ventured into casual shoes and apparel. As co-founder Phil Knight explains, “we just tried to get our shoes on the feet of runners… we thought the world stopped and started in the lab and everything revolved around the product.”
When the brand pursued a DTC model, and ended hundreds of long term partnerships with retailers, it quickly realised the importance of mass distribution: many light buyers couldn’t find Nike in their usual stores and so didn’t buy them. Sales declined 8% in 2024.
Nurofen contains exactly the same chemical as ibuprofen, but can be seven times as expensive. When it comes to pain relief, we assume expensive products must be better.
In a quest to dominate the US market, Oatly sent representatives to high-end coffee shops to share the product with local baristas. The baristas, effectively controlling distribution, would then recommend and use oat milk with customers.
OnlyFans pays out $7 billion to its content creators, but the split is far from even. As Tom Hollands notes, the top 1% of accounts make 33% of all the money and the top 10% of accounts make 73% of all the money.
According to John Foley, then CEO of Peloton, “in the very, very early days, we charged $1,200 for the Peloton bike for the first couple of months. And what turned out happening is we heard from customers that the bike must be poorly built if you’re charging $1,200 for it. We charged $2,000 dollars for it, and sales increased, because people said, ‘Oh, it must be a quality bike.’”
The meteoric rise of Peloton suggested gyms were a thing of the past. Why travel to exercise when you could do it in your living room? Yet the company’s share price remains 97% below its 2020 peak, and it has recently started renting bikes to help shore up its losses.
In 2003, neuroscientist Read Montague added an FMRI twist to the Pepsi Challenge. In a standard blind taste test, the brain region associated with seeking reward was highly active, and Pepsi still came out on top. But things changed when volunteers were told what they were drinking. This time, Coke was the clear winner, and the area of the brain associated with thinking processes lit up. In other words, the expectation of drinking Coke made it more enjoyable.
Quorn initially targeted their products at vegetarians and vegans. After all, who else would want to buy plant-based meals? But they soon discovered that these meals also appealed to health conscious non-vegans. This insight led Quorn to rebrand as a ‘healthy food’ company, famously partnering with openly meat-eating Mo Farah, and helped them massively expand their buyer base (and sales).
Getir was valued at £9 billion in early 2022 – one of the many rapid delivery apps that thrived off pandemic restrictions. But two years later it exited the UK market, after the return to physical shopping meant it struggled to turn a profit (especially with competition from existing takeaway apps like Deliveroo).
When Dietrich Mateschitz visited Thailand in 1982, he discovered Krating Daeng: a locally sourced drink that helped to cure his jet lag. He was so impressed that he decided to adapt it for a western audience. He called it Red Bull.
Jennifer Fleiss, co-founder of Rent the Runway, had no background in fashion. But she says that “being naive is one of the best secrets of first time entrepreneurship. So we were naive enough to reach out to Diane von Furstenberg and to ask her advice and her time.” The meeting gave Fleiss important pointers for shaping the business.
Michael O’Leary removed the add-ons that make flying pleasurable. Ryanair routinely ranks bottom in airline surveys. Its social media is full of complaints about cancelled flights and extra baggage fees. But it’s a ruthless provider of low fares and high punctuality, and Europe’s most profitable airline.