Decline of Linear TV and Gillette’s Profit Margins

Tren Griffin of 25iq put out a tweetstorm with some insight on why Procter & Gamble’s (PG) high margined grooming business, Gillette, is getting nicked (pun’s always intended) by new online competitors like Harry’s and Dollar Shave CLub.

This tweet above really stood out to me.

Podcasting is a great new entertainment medium. I listen to them in car and at home.

Harry’s is one of the more common podcast sponsors I hear. And it worked. I bought a Harry’s subscription to test out the competition. I also bought the subscription because I knew it would help pay the bills for one of my favorite podcasters, Mike Duncan. For reals, go listen to his podcasts The History of Rome (THoR website) and Revolutions (Revolutions website).

What I don’t hear is ads for Gillette’s shave club. Tren is right. The disintermediation of linear TV is opening up the door for smaller companies to build their brand cheaply. Harry’s is embracing podcasting. Dollar Shave Club built its brand harnessing the power of viral YouTube videos.

Tren finishes off his tweetstorm with the same thoughts we had yesterday. High costs plus a worsening consumer experience breeds competition.

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