I am @Compound248 and this is the next installment in our Business Breakdowns mini-series focused on Digital Infrastructure. In this episode, we will talk about a company that delivers that airbourne experience, Gogo. Known for its eponymous inflight WiFi service, Gogo is frequently misunderstood, having undergone a transformation to focus purely on the business, or private, aviation industry. It sells equipment that gets installed on a private aviation airplane, and then, in infrastructure like fashion, monetizes that equipment with high margin service revenue for decades. We’re fortunate to be joined by Oak Thorne, who has led Gogo for 20 years into the success it is today.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:04:02] - [First question] - Gogo’s history and how his history intersects with it [00:08:03] - His background and what lead him to joining Gogo  [00:10:01] - A primary focus on US airlines and high-end air travel specifically [00:12:33] - What the competitive landscape looks like today and how many planes they have [00:14:15] - Whether the formerly unaddressable planes will make their way into their fleet  [00:16:04] - Their product offerings today and the differences between them  [00:19:26] - Overview of their business economics and their digital infrastructure  [00:21:31] - Unit economics and labor and install costs [00:24:17] - CapEx, service revenue, and a projected 20% system growth  [00:25:55] - Cost structure margin on their recurring service revenue  [00:27:25] - Momentum of business growth year-over-year [00:28:29] - How the ATG network actually works and how the 5G connection improves it  [00:30:44] - What portion of their business comes from aftermarket installations [00:32:18] - Competitive nature of this sector and if someone could come after Gogo [00:40:42] - Describing the differences between GeoSatellite and Elon’s Starlink [00:46:19] - Reasons why Starlink might become a competitor [00:48:56] - How Gogo’s 5G and global broadband product are offensive and defensive  [00:51:24] - Portion of new US delivery aviation planes built with in-flight WiFi solutions [00:55:01] - How long he anticipates this growth runway to continue  [00:56:27] - Potential risks to Gogo from a legal and regulatory perspective  [00:59:50] - Cyclicality of their clients and suspended business periods   [01:04:57] - Two key lessons for others attempting to build and lead a company 

This is Dom Cooke and today we are breaking down the PGA Tour. Alongside the four standalone majors, the PGA Tour is the pinnacle of professional golf. It’s where the best players in the world earn their living and tee it up for their place in golfing history. To break down the business behind the stars and action you see on the PGA Tour, I’m joined by Neil Schuster, co-founder of golf media business No Laying Up. Editor’s note: this conversation was recorded before the field for this week’s inaugural LIV golf invitational event was announced. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss   Show Notes [00:02:27] - [First question] - What the PGA Tour is, it’s size today, and how it generates revenue [00:06:04] - Defining what the Tiger Tax is and its implications  [00:08:04] - When the PGA Tour was founded and the key moments leading up to today [00:15:40] - Deane Beman: Golf’s Driving Force; Changing the format of the Tour into a non-profit  [00:17:24] - Being a member run organization and player influence over the board [00:18:23] - Overview of the business structure and model of the PGA Tour  [00:22:27] - Reasons for the 72 hole stroke-play format   [00:24:43] - The distribution of over a billion dollars of revenue [00:27:59] - Why their capital allocation is unique and their incentive programs [00:31:37] - Unique pension structures of their deferred compensation plan [00:34:30] - The Champions Tour as a secondary way to make a living after the PGA tour [00:36:07] - Rival SGL and PGL tours and how they are trying to disrupt the PGA tour [00:44:42] - Having a legacy name advantage to bring players and capital in  [00:47:47] - Relying on growing viewership, ratings, and new sponsors over time [00:52:48] - Paths to becoming a more successful tour amidst the new startup tours [00:55:07] - Netflix’s partnership with the PGA Tour to try and bring in new viewers [00:56:54] - The most surprising lessons about the PGA Tour he’s learned