Sports is highly integrated with content. Watercooler should consider being a hub for independent content. Watercooler can provide a rich community experience, but the brands can probably offer a rich content experience. It's a toss-up whether fans will want to go on social networks to express their passion and support for their teams or shows, or whether they'd prefer to go to the actual branded site. Watercooler is a lot like Zynga, the leading social gaming company, in that it leverages social networks and allows people to connect with people they already know. Watercooler clearly had this in mind when it launched. So many build destination sites and forget the most important lesson in building a company - distribution and access to the audience. In this case, the stadium is the social network. You can't sell hot dogs in a parking lot, you have to be in a stadium. Watercooler is doing the right thing by going to where the fans are. Here's our observations of 2-year-old Watercooler, which has raised $4 million in funding and has 35 million users, according to CEO Kevin Chou in his video pitch. Joining us to analyze the popular social media company is Charlene Li, a social media guru and founder of Altimeter Group, a digital strategy consulting company. This week, we take a look at Watercooler, which brings fans of popular shows, such as 24, 30 Rock and Seinfeld, and sports teams, such as the LA Lakers and Oakland A's, together across major social networks, such as Facebook, MySpace, Bebo and hi5. Charlene Li helps us evaluate Watercooler, a site for sports and TV fans
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