Sheldon Jacobson: ‘Shark Tank’ sinks with live audience
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“Shark Tank,” the popular prime-time ABC network business reality program, started its 14th season Sept. 23 with a new twist: It was broadcast with a live audience. The results of this change were highly vocal spectators much like what you would find at a professional wrestling event, with the Sharks often serving as the defacto gladiators.
The net effect of this live audience was a program that seemed more like the Sharks playing to their audience rather than the Sharks doing what they do best: be successful entrepreneurs who not only invest in promising products or services, but also teach the value and benefits of entrepreneurship to a broad spectrum of budding entrepreneurs across the nation.
Entrepreneurship is about balancing risks and rewards. The goal is to identify opportunities that offer the most upside potential with minimal downside risks. With any investment, there are no guarantees. The Sharks have a keen eye for identifying products and services with positive risk-reward ratios. When highly attractive investment opportunities emerge, the Sharks have been known to turn on each other, hoping to be the winner of a deal. The entertainment provided when Sharks compete among themselves is part of the show’s attraction.
What makes “Shark Tank” special is its simplicity: A group of wealthy investors are pitched business ideas by nascent entrepreneurs that they can choose to invest in. Many of these entrepreneurs get offers, often less than what they asked for. More importantly, they gain the opportunity to work with seasoned investors like Mark Cuban, Kevin O’Leary (aka Mr. Wonderful) and Daymond John when they sell a share in their budding companies.
Many of these entrepreneurs become very wealthy because of the show. For example, Lori Greiner claims to have invested in over 100 products with a 90% success rate. The success rate of all the Sharks is certain to be similarly impressive, given the vetting process to get on the show and the shrewd investing experiences of the Sharks.
What has made “Shark Tank” of interest to many is the banter between the Sharks and those seeking investments, as well as the friendly barbs exchanged between the Sharks themselves. O’Leary is often positioned as the villain among his fellow Sharks, offering what he often claims is “the truth.” Greiner’s Golden Ticket adds an element of intrigue when she sees a tantalizing investment that she gives exactly what is being asked.
The live audience adds a distraction that degrades the businesslike atmosphere that sets “Shark Tank” apart on its own pedestal. Howling spectators encouraging “a deal” seem out of place. When a Shark asks for the audience’s opinion on some aspect of pitched product, it devalues the perceived value of a Shark’s expertise.
With reality television providing much entertainment, “Shark Tank” stands apart as its own special brand, merging business, entrepreneurship, human interest and an element of education. Injecting a live audience into this well-balanced chemistry disparages this value.
“Shark Tank” offers entertainment and education. It also offers hope to budding entrepreneurs. They can compare their products and services to those being pitched and heed the advice offered by the Sharks. Most will never be invited to the show. They still benefit from everything that the show offers.
“Shark Tank” is not designed for audience participation. The Sharks deserve better (they also agreed). Those watching the show on television deserve better. But most importantly, the many entrepreneurs who benefit from the show deserve better.
Sheldon Jacobson is a computer science professor at the University of Illinois.