Build Underserved Markets

Sam Parr and Steph Smith discuss Tyler Perry's success strategy of focusing on an underserved market segment and maintaining consistent content creation over decades. They emphasize how this approach, while seemingly limiting, proved incredibly successful.

Key Points:

• Market Focus Strategy:

  • Targeted the Black population (12% of America)
  • Proved that serving a smaller, passionate base can be more valuable than targeting broader markets
  • Similar to Bjork's success in Iceland - strong support from a dedicated audience base

• Long-term Dedication:

  • Created content consistently for 30 years (since 1992)
  • Produced over 1,200 TV episodes
  • Not a "one-hit wonder" - demonstrated sustained success
  • Developed deep understanding of his audience

• Business Approach:

  • Started with $12K investment in Atlanta community theater
  • Generated $100M+ in theater tickets over a decade
  • Additional revenue: $20M in merch, $30M in video sales
  • Maintained ownership of IP throughout career
  • Consistently negotiated deals to retain content rights

• Sam's Personal Reflection:

  • Acknowledges Perry as exceptional talent
  • Places Perry in same category as Elon Musk and Jeff Bezos
  • Views Perry's success as beyond typical achievement: "we're not the same"
  • Recognizes Perry's unique "horsepower" and dedication
  • Compares it to "a race car versus not a race car" - fundamental difference in capability

• Success Factors:

  • Exceptional work ethic
  • Consistent content creation
  • Deep market understanding
  • Strategic business decisions
  • Long-term commitment to craft