The Intersection of Entertainment Value and Growth Strategy: Lessons from TikTok and BarkBox

The Intersection of Entertainment Value and Growth Strategy: Lessons from TikTok and BarkBox

Introduction:
In the ever-evolving landscape of mobile video apps and subscription-based companies, there are valuable lessons to be learned from the successes and failures of industry giants. This article explores the concept of the Entertainment Value Curve and its impact on the popularity of TikTok and the growth strategy employed by BarkBox. By understanding the relationship between production value, social value, and customer engagement, businesses can unlock the key to capturing the hearts of their audience and driving sustainable growth.

The Entertainment Value Curve:
The Entertainment Value Curve, as defined by Reforge, posits that entertainment value is a result of the combination of production value and social value. This formula creates an efficient frontier of product/market fit, where successful mobile video apps thrive as social experiences rather than just viewing experiences. TikTok, with its emphasis on snackable and shareable content, exemplifies this concept and has taken the world by storm. In contrast, Quibi's failure can be attributed to its inability to optimize for the Entertainment Value Curve, focusing on short content without enhancing social value.

Social Value and Production Value:
Different platforms occupy various points on the Entertainment Value Curve, depending on the balance between social value and production value. Snapchat, with its low production value but high social value, allows anyone to create fun content using AR lenses. Instagram strategically lowered the production bar with IG Stories, increasing the entertainment value by enabling more people to post and consume content. TikTok, on the other hand, emphasizes topical content first and socially connected content second. Netflix, with its high production value, appeals to a niche market of elite content creators.

The Role of Creation Participation:
Measuring social value can be achieved by analyzing the creation participation rate, which refers to the percentage of users who create content regularly. Platforms like TikTok and Instagram have actively encouraged creation participation through simplified content creation tools and personalization algorithms. By reducing the production gap and making it easier for users to engage with content, these platforms foster a sense of connection and drive consumption and conversation.

BarkBox's Growth Strategy:
BarkBox, a successful subscription-based company, has implemented several key strategies to achieve its impressive growth. By solving a real-world problem and offering personalized products, BarkBox has built a loyal customer base. The brand's effective use of packaging, reminiscent of Apple's approach, has driven word-of-mouth marketing through unboxing videos shared on social media. Additionally, BarkBox's decision to sell on Amazon, despite concerns about losing control and insight, has proved advantageous in reaching a wider customer base and leveraging customer reviews.

The Power of Vertical Integration:
BarkBox's commitment to manufacturing its own products has contributed to its success and customer loyalty. By owning its most important assets, BarkBox ensures that customers can only obtain their beloved treats from BarkBox, creating a sticky customer relationship. This vertical integration has also allowed BarkBox to achieve high margins by eliminating middlemen and cutting costs.

Actionable Advice:

1. Prioritize social value: When developing a mobile video app or subscription-based service, focus on creating content that fosters a personal connection between the viewer and creator. Encourage creation participation to drive engagement and enhance the entertainment value of your product.
2. Embrace strategic partnerships: Consider expanding your reach through partnerships with established platforms or retailers. By leveraging their existing customer base and distribution channels, you can tap into new markets and drive growth.
3. Personalize the customer experience: Tailor your product offering to meet the changing needs and preferences of your customers. Use data-driven insights to deliver personalized recommendations and foster a sense of exclusivity and loyalty.

Conclusion:
The success of TikTok and BarkBox stems from their ability to understand and leverage the Entertainment Value Curve and implement effective growth strategies. By prioritizing social value, personalization, and strategic partnerships, businesses can create a compelling and engaging product that resonates with their target audience. The intersection of entertainment value and growth strategy holds immense potential for businesses seeking to capture the hearts and wallets of their customers in today's dynamic digital landscape.