Business Wars

It's the early 1980s, and for the first time in 30 years, the U.S. guitar market has gone cold. Bands are switching to synthesizers and kids are ditching their garage bands for computers and video games.

A group of employees has bought the Fender brand but not its factory. Now they need to find a place to keep making guitars — fast. And Gibson has new owners, too — who bring plenty of rock 'n' roll attitude to the job, but little experience. Can these new stewards of guitar's most hallowed brands save their companies from the scrap heap?  

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 In the 1960s, rock'n roll's popularity continues to grow. But one of the genre's most popular guitars, the Les Paul, is no longer being made. Now the guitar's namesake must convince an out-of-touch Gibson to put the favorite guitar of Eric Clapton and Keith Richards back into production.

Meanwhile, Gibson's rival Fender has a new parent company: CBS. Thanks to their deep corporate pockets, Fender is manufacturing and selling more guitars than ever. To keep pace, Gibson also finds a new corporate owner. But in their race for market dominance, are both guitar companies sacrificing quality for quantity? 

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Gibson's Les Paul sets a new standard for the solid-body electric guitar, and rival guitar maker Fender needs to respond. The company does so in 1954 with a sleek, futuristic guitar unlike anything else on the market: the Stratocaster. It's a hit.

With their higher volume and heavier tones, the Les Paul and Stratocaster help give rise to a new style of music: rock 'n' roll. It opens up a whole new market for electric guitars -- but which company will dominate?   

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It's 1950, and Fender's first solid-body guitar, the Esquire, is the laughingstock of the music industry. To guitar makers used to elegantly made hollow-body guitars, Fender's thin, simple plank of solid wood is a joke. But its bright, powerful sound and lack of feedback make it a hit with guitar players.

Gibson's ambitious young president, Ted McCarty, knows his company has to counter with a solid-body electric guitar of its own. To market the instrument, Gibson will turn to the most famous electric guitarist in the world, a man who happens to be an old friend of Leo Fender's — Les Paul.

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In the 1930s and ’40s the market for electric guitars is growing, but it’s hindered by the instruments’ flawed designs. But a small group of mavericks is rethinking the guitar for the electronic age.

One of them, guitarist Les Paul, tries unsuccessfully to convince one of America's oldest guitar companies, Gibson, to mass-produce his "Log" — one of the first solid-body electric guitars. Gibson turns him down flat. But when a radio repairman turned inventor named Leo Fender sees Paul's Log, he's inspired to attempt his own version of a solid-body electric — and his creation will go on to forever change the way guitars are made.

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It’s a new century and the beer industry is changing fast. Beyond America, new brewery empires are forming and they want to buy their way into the lucrative U.S. market.

And Miller is the first to fall, bought out by a South African company that wants to pull the Milwaukee brewery out of the doldrums.

But Anheuser-Busch isn’t worried. It’s the biggest brewer on the planet by some margin. But the king of beers is about to discover that its throne isn’t as secure as it thinks.

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It’s the 1980s and Miller’s glory days are over. Drinkers are deserting High Life and Anheuser-Busch is about to launch a $50 million attack on Miller Lite.

With the pressure mounting, Miller hunts for a way to revive its momentum. It’s a search that see the company travel to Japan, disguise itself as a microbrewery, and go head hunting.

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It’s the late 1970s and Miller is hurtling towards the top of the brewing industry on the back of High Life and Lite. Anheuser-Busch’s new leader August Busch III knows he must act fast to stop the threat.

But before he can do that there’s internal problems that need fixing. A strike has shut down the company’s breweries and threatening to leave the business disunited and demoralized at the worst possible moment.

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Come the early 1970s, Miller has a new owner: tobacco giant Philip Morris. Armed with the Marlboro maker’s millions and marketing skills, Miller is about to shake up the beer business with a campaign targeting blue-collar workers thirsty for a cold pint...or three.

But at Anheuser-Busch, a generational rift is brewing — one that could have major repercussions for the beer business. The tensions between conservative-minded CEO Gussie Busch and his forward-thinking son and heir August Busch III are fast approaching the breaking point.

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By 1933 Prohibition is over, and that means the race is on to dominate a beer market that’s been reset. Under the leadership of Anheuser-Busch heir Gussie Busch, the company is out to reclaim the beer throne. But there’s a challenger for the crown — Milwaukee’s top brewery, Schlitz.

But as these two giants lock horns in the fight for dominance, Miller Brewing is struggling to realize its dream of becoming a major league brewer. And it won’t sit by on the sidelines.

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It’s 1893 and Chicago is about to host The World’s Columbian Exposition. It’s going to be the biggest show the world’s ever seen, and that means it’s time for Adolphus Busch to shine.

He’s the owner of Budweiser brewery Anheuser-Busch and the most flamboyant beer baron of the Gilded Age. Busch is determined to use the show to overshadow and outspend his nemesis, Captain Pabst, the owner of America’s number-one brewery.

But there’s a distraction he’s got to deal with first. A small-time brewer from Milwaukee called Miller has just launched a rival beer. Its name? Budweiser.

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On today's special interview episode, renowned media futurist Rich Greenfield returns to fill us in on the latest developments in the streaming wars and how these changes might impact viewers in the coming years. Greenfield is a media and tech analyst with BTIG who has been following the industry for decades.

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It’s spring 2019, and the Mouse House is determined to challenge Netflix for streaming supremacy. Disney CEO Bob Iger draws gasps at an industry event when he announces the new Disney Plus streaming service will cost just seven bucks a month. Then the company drops another bombshell — it’s buying out Comcast’s stake in Hulu, the destination for edgy, adult fare, to expand its streaming empire. Now whatever content Disney makes, it’ll have a platform to host it.

But Disney isn’t the only company eyeing Netflix’s crown. Apple, Comcast, Viacom, and WarnerMedia are all sharpening their knives. In the battle for eyeballs, anyone could emerge the victor.

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Netflix goes from being a streaming company to a movement in which consumers all over the world decide what to watch, and when and how they watch. The future that Reed Hastings and Marc Randolph envisioned two decades earlier has arrived. The unfettered reign of cable television has ended.

In 2019, AT&T’s acquisition of HBO’s parent company Time Warner in 2019 throws HBO’s future into even more turmoil. In a post-Game of Thrones world, can the cable network survive? Or will Netflix’s march to domination be complete?

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Hollywood execs thought Netflix was crazy to give up advertising and spin off opportunities by letting viewers flop on a couch and watch a whole season of a show all at once. But Netflix knew it was onto something. All of their studies and focus groups revealed something new: viewers who binged content formed an emotional attachment to Netflix.

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We take a step back to explore how a little company called Home Box Office went from serving B-movies to 325 homes in Wilkes Barre, Pennsylvania to become the juggernaut that we know as HBO. In the process, HBO, became the standard by which all other cable companies would have to measure themselves -- after all, it’s not TV. It’s HBO.

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You know the expression “content is king”? Well it turns out, sometimes it’s not. Sometimes it’s a hard-working algorithm that burrows into customer habits and viewing patterns. With that, Netflix had a clear upper hand on Blockbuster. That, and the fact that Netflix targeted this new “streaming” technology that in 2007, no one really believed in. Soon they were on top of the world. But it’s dangerous being on top. If you trip, you have a long way to fall.

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Thinking like your enemy is the best way to beat them, and during the war, Blockbuster tried every trick in the book to get inside Netflix. Sometimes they succeeded — sending “housewives” into warehouses as spies — and sometimes things didn’t go as planned. But when Blockbuster did deliver, they delivered big. They threw everything they had at Netflix, but the war raged on.

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After Hastings pleaded with Antioco to buy Blockbuster online, Antioco agreed to present Hasting’s proposal to the board. What he didn’t tell him was that he was pushing the board to reject the offer so Netflix would wither and die. Meanwhile, Netflix was struggling to gain legitimacy in Hollywood. Netflix quickly realized that before it could take on the Hollywood gods, it would have to slay Blockbuster.

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The way we watch is changing so rapidly that we’ve decided to revisit our very first and most popular Business War: Netflix versus Blockbuster. We’re re-airing an expanded eight-part series following Netflix’s battles against HBO and today’s new entrants into the Streaming Wars.

It all started around 1997, with a guy named Marc Randolph and his mathematician friend, Reed Hastings. Randolph and Hastings knew they’d have to take on Blockbuster. But what they didn’t anticipate was that their business model would take on network television and eventually change the entire movie industry.

This was an 8-year total war that left innumerable casualties in its wake: thousands of hollowed out buildings and economic losses in the billions.

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Electric. Diesel. Driverless. Automobile Magazine’s New York Bureau Chief, Jamie Kitman, joins to talk about the latest developments in the car industry and what’s next for Ferrari and Lamborghini.

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It is 1997. For decades, Lamborghini has struggled to survive as a company, and to compete with its nemesis Ferrari. All that is about to change. Volkswagen buys Lambo and injects it with cash and bulletproof German engineering. For the first time ever, Lamborghini can finally compete with Ferrari with a full line of cars—and serious racing.

The result is a new golden age of supercars, one that we are still living through today.

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It’s 1970. At his factory in Italy, Ferruccio Lamborghini is desperate to build a car that can outdo his rival, Enzo Ferrari, whose Ferrari factory is just 20 miles away. With the help of genius designers and engineers, Lamborghini comes up with what many car fans still today call the most outrageous model ever to roll down a road.

Throughout the decade and beyond, the Ferrari/Lamborghini rivalry spawns the fastest cars in the world, the coolest car movies, and more.

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It’s the early 1960s. In Maranello, Italy, Enzo Ferrari has made a name for himself building the most exotic road cars in the world. But when a dissatisfied customer named Ferruccio Lamborghini shows up to complain about his Ferrari’s busted clutch, Enzo refuses to accept blame, accusing Lamborghini of not knowing how to drive. Lamborghini vows revenge.

In 1964, Lamborghini launches its first model, kicking off a rivalry with Ferrari that makes for one of the hottest automotive stories of the 1960s.

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Bratz. Monster High. Funko. These are the toys that rule the roost in 2019. Veteran toy industry analyst Sean McGowan joins to discuss the big business of toys today, how Hasbro and Mattel can compete, and what’s going on with Lego.

You can find new episodes of Business Wars, completely ad-free, only on Stitcher Premium. For a free month of Stitcher Premium, go to stitcherpremium.com/wondery and use promo code WONDERY.

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With the world plugging into the Internet, toys are under pressure. Kids are swapping plastic play for screen-based entertainment and both Mattel and Hasbro need to adapt. The question is: how?

Mattel’s also finding out the hard way that Barbie’s reign as the queen of dolls is no longer secure. Challengers to her throne are emerging and the first strike against the dream doll comes not from Hasbro, but from within its own offices.

You can find new episodes of Business Wars, completely ad-free, only on Stitcher Premium. For a free month of Stitcher Premium, go to stitcherpremium.com/wondery and use promo code WONDERY.

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A few months ago, Mattel’s revenues were just fifty million dollars behind Hasbro’s. But now that Hasbro’s swallowed Tonka—the classic maker of Nerf, Play-Doh, and Monopoly—Mattel is half a billion dollars behind, and CEO John Amerman isn’t happy about it.

Ever since Hasbro turned British fashion doll Sindy into a Barbie lookalike, the two toymakers have been at war. Now Amerman is looking to make a couple strategic acquisitions: one to put Mattel back in pole position, and the other, to spite Hasbro.

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It’s the early 1980s and things are not looking good for Hasbro. The company hasn’t had a hit since Hungry Hungry Hippos; its founding CEO Merrill Hassenfeld has just died; now Star Wars dolls have just about gobbled up the entire action figure market. Hasbro needs to deliver a toy capable of taking on the Star Wars dolls, or else the company risks losing its only source of stable income, the family pencil factory.

But Hasbro’s not the only toymaker plotting to take on Star Wars. Three thousand miles away in Los Angeles, Mattel’s also preparing an assault on the action figure market. A line of fantastical action figures called The Masters of the Universe.

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Sizzlers, Mattel’s new motorized Hot Wheels, were supposed to be the top toy this Christmas. But sales have fizzled, leaving Mattel $30 million below target. For the last ten years, Mattel’s done exceptionally well by its investors, but now the toymaker is facing a stock price collapse. To keep up appearances, Mattel starts cooking its books—but the move may end up costing CEO Ruth Handler the company.

Elsewhere in Toyland, Hasbro’s facing an uncertain future. Kids are turning their backs on G.I. Joe and the company’s short on cash. As its rivals rush towards an electronic future, Hasbro risks being left behind.

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It’s the 1960s and Hasbro is struggling. The pencil manufacturer turned toymaker hasn’t had a major success since Mr. Potato Head hit the shelves in 1952, and it’s starting to lose money. If the company doesn’t act fast, it’ll be headed for bankruptcy in no time.

Mattel’s “accessories sold separately” approach to Barbie has revolutionized the industry. Now Hasbro’s toymakers hope to replicate her success with a doll of their own—for boys. But first, they’ll have to get the green light from CEO Merrill Hassenfeld, who has one iron-clad rule about new toys: no dolls.

Meanwhile, Mattel’s about to roll out a hot new boy-themed toy of its own that will cement the company’s status as the world’s top toymaker.

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It’s the late 1940s and two small toymakers are taking their first uneasy steps. The names of these young hopefuls are Hasbro and Mattel. One’s an offshoot of a pencil manufacturer. The other a husband-and-wife garage start-up.

But toy-mayking, they soon discover, is an unexpectedly cutthroat business. If either of these companies hopes to survive--let alone succeed--they’re going to need to get creative. Disrupting the embedded and experienced kingpins of Toyland, will require them to take chances on TV, potatoes, Mickey Mouse and one particularly risqué novelty doll from Germany.

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Mike Pesca, Slate, joins to talk about the biggest risks facing the NFL, whether the Patriots are good or bad for the league, and what our culture would look like if football never took off as a professional sport in the first place. Plus, he talks about his latest book, Upon Further Review: The Greatest What Ifs in Sports History. Hear more from Mike on his daily podcast, The Gist.

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The battle between the NFL and the USFL finally comes to a head. Donald Trump has bullied his way to the top of the USFL and pressured his league into suing the NFL for violating the Sherman Antitrust Act.

But the NFL Commissioner Pete Rozelle is not about to back down. If the NFL settles now, they’ll be opening the floodgates to a slew of new competitors, and costly trials the league can’t afford. The only course of action? Dismantle the USFL so completely that no one even thinks to challenge the NFL again.  

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For nearly two full years, the mighty NFL sat idly by as the upstart USFL tried to chip away at its status, talent, and reputation as the most powerful sports league on the planet. Now, the NFL is ready to settle the score, once and for all.

The league commissions a Harvard professor to prepare meticulous, 46-page step-by-step plan intended to squash the USFL in its tracks. Commissioner Pete Rozelle prepares himself for battle—but the battle comes sooner than expected. The USFL files an antitrust lawsuit against the NFL, claiming that it has monopolized fall television. At stake? One point three two billion dollars, enough money to kill the NFL.

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Description: It’s 1984, and at USFL franchise offices across the country, multi-million dollar contracts are flowing like Gatorade. As the United States Football League prepares for kickoff on its second season, owners race to recruit the best college players, and steal the stars from NFL rosters.

Initially, the NFL dismissed the new league as a sideshow stunt. But the USFL’s spending spree has caught the full attention of the veteran league--which is exactly what New Jersey Generals owner Donald Trump wants.

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By most measures, the USFL’s debut season is a success. The games post solid numbers--in both ticket sales and television ratings--offering undeniable proof that there’s an audience for professional spring football. Still, the league is hemorrhaging money. At a post-season meeting, the twelve franchise owners vote on what to do with their fumbling investments. Eleven of the owners decide to stay the course, and even expand the league to bring in more capital, but the owner of the New Jersey Generals, J. Walter Duncan, has had enough.

Duncan puts the Generals on the market for eight million dollars, hoping the low price will launch a bidding war. But only one man makes an offer: a young, brash, egomaniacal Manhattan real estate developer named Donald Trump.

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Description: The NFL has faced rival leagues in the past, and routinely squashed them without breaking so much as a sweat. The NFL’s powerful commissioner, Pete Rozelle, assumes the USFL will be no different. He sees the rival league as a joke. A blip on the radar. But then the new league does something no one saw coming: it signs University of Georgia junior Herschel Walker, the biggest star in college football.

When Walker signs with the USFL’s New Jersey Generals, he leaves more than his college diploma on the table. The Heisman trophy-winner passes up a seat at the table of America’s Team, the legendary Dallas Cowboys. “This,” Rozelle tells his colleagues, “is war.”

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For years, David Dixon has been trying to convince the National Football League to launch an expansion team in New Orleans, but he always comes up empty-handed. Finally, after one too many letdowns, Dixon realizes his only hope for a hometown team is to start his own football league. Unlike the NFL, his league — the United States Football League — will play its games in the spring, and boast rosters full of hometown heroes from regional colleges.

Fans and investors seem to love the idea. But just then, the NFL announces the location of its next franchise: New Orleans. As Dixon’s long-time dream comes true, he abandons plans to launch the USFL — for now.

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Egg McMuffins, Croissan’wiches and coffee. Today’s fast food fight is all about breakfast time. Wall Street Journal reporter Julie Jargon joins to talk about where Burger King and McDonald’s are headed, the rise of eating at home, and how fast-casual chains are taking a bite out of the market.

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It’s a new century and times are tough for the burger giants. Burger King’s in a rut and McDonald’s is about to report its first loss in nearly 40 years. Both brands need to reinvent themselves fast. But can they come up with strategies robust enough to shake off the coming economic crisis?

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Burger King is under pressure. McDonald’s is wowing the nation with a new way to eat chicken and Wendy’s is quickly closing in on the number two fast food spot. Backed into a corner, Burger King prepares to bite back with an ad campaign attacking its rivals directly.

The heat is on and the burger wars are about to get dirty. It’s a game of kitchen chicken. The only question is who will blink first.

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It’s the 1970s, and the burger barons are turning to TV advertising to propel profits skyward. McDonald’s is betting that a little song and dance can give it the competitive edge, but Burger King is stepping up their ads as well: debuting a killer new slogan that’s sure to set it on a collision course with Burger Chef.

And while the fast food wars continue to escalate at home, McDonald’s starts to set its sights abroad.

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By the mid-1960s, Americans have developed a taste for fast, delicious, affordable food — and they’re demanding more. U.S. fast food franchises — McDonald’s, Burger King and Burger Chef — know that if they want to feed America and win the burger wars, they’re going to have to grow.

But Wall Street is still reluctant to invest in a bunch of burger chains. And Ray Kroc is about to learn firsthand that those who can’t stand the heat need to be forced out of the kitchen.

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It’s the late 1950s and fry cooks are flipping as fast as they can. But McDonald’s and Insta-Burger King’s desire for national success far outstrips their ability to deliver. It’s not enough to just make a better burger: bad contracts, bad equipment, limited capital and investors who don’t believe in 15-cent burgers threaten to stop the race in its tracks.

Ray Kroc believes that he has the answers but to beat Insta-Burger King and a new aggressive competitor from Indiana, he has to get out from the McDonald Brothers’ shadow--and he has to do it fast.

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It’s 1948, and somewhere around the edge of the Mojave Desert, a drive-in restaurant is making waves. It's called McDonald’s and it’s like no burger joint anyone’s seen before—a carhop-free eatery with lightning fast service, and shockingly low prices.

But McDonald’s proprietors aren’t dreaming as big as the entrepreneurs traveling to California to see their groundbreaking restaurant. And for would-be burger king Keith Cramer and milkshake machine salesman Ray Kroc, that’s a golden opportunity.

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Mardiros Iskenderian was known for two things: the unbelievable generosity he showed to the Armenian community, and the deep love he expressed for his family—particularly for his mother, whom he treated like a queen.

So why did Mardiros try to cut his sisters out of the family business? What drove him to register the Zankou Chicken trademark solely under his own name? And how could a simple business re-arrangement among a loving, growing clan end in murder?

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It’s January 14th, 2003, and 56-year-old Mardiros Iskenderian, the founder of the family-owned chain of rotisserie restaurants Zankou Chicken, is leaving the house for the first time in months.

Twenty years ago, the Iskenderians transplanted their business from war-torn Beirut to sunny Los Angeles, where it blossomed into a California institution. But today, Mardiros is battling cancer—and losing. He kisses his wife Rita and heads for the door. It’ll be the last time she’ll see him alive.

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Microsoft has officially won the battle against Netscape, but for Bill Gates, the browser war is far from over. The federal government has filed an antitrust lawsuit against Microsoft, and called Gates to Washington, D.C. for questioning.

Hotshot prosecutor David Boies aims to show that Microsoft used its monopoly on PC operating systems to drive Netscape out of business. The case has the potential to bring down the software giant once and for all. And the televised drama of a smooth-talking lawyer facing off against a geeky billionaire leaves the nation riveted.

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To compete with Netscape, Bill Gates is forced to do the one thing he hates most: give tech away for free. He bundles Internet Explorer with Windows, effectively making his browser ubiquitous--and Netscape’s redundant. Suddenly, Netscape, the company that launched the dot-com boom and shattered records with its IPO, finds itself on life support.

But the battle isn’t over. Attorney General Janet Reno has been watching Microsoft snuff out the competition, and she’s about to make life hell for Bill Gates.

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It’s summer 1995, and Bill Gates is worried about the sudden rise of the Internet. In the world of computers, Gates is used to being in the driver’s seat. Now it seems he’s not even in the car. 

Marc Andreessen has just launched the latest version of Netscape Navigator. It’s faster and more stable than the last version, and still, inexplicably, free. The Internet is a massive success, certain to work its way into every person’s life, but as Gates pokes around he can’t find a single Microsoft file on it. To stay in the game, Gates realizes, that will have to change.

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