1 00:00:03,460 --> 00:00:06,309 Sean Aylmer: Welcome to the Fear and Greed Daily Interview. I'm Sean Aylmer. 2 00:00:06,790 --> 00:00:10,100 Sean Aylmer: There's been a lot of talk lately about the Metaverse, 3 00:00:10,160 --> 00:00:13,870 Sean Aylmer: ever since Facebook founder Mark Zuckerberg announced the social media 4 00:00:13,870 --> 00:00:18,190 Sean Aylmer: platform's parent company would be renamed Meta. I've had plenty 5 00:00:18,500 --> 00:00:20,940 Sean Aylmer: of conversations about it and I still feel as if I've 6 00:00:20,940 --> 00:00:24,280 Sean Aylmer: only got a very limited understanding of how it all works. 7 00:00:24,670 --> 00:00:26,270 Sean Aylmer: Today I'm going to get to the bottom of it. 8 00:00:26,410 --> 00:00:29,200 Sean Aylmer: What the Metaverse is? Why it's so important in the 9 00:00:29,200 --> 00:00:32,330 Sean Aylmer: digital world? And what it means for business? I've enlisted 10 00:00:32,330 --> 00:00:35,550 Sean Aylmer: the help of Australian tech entrepreneur Stephen Phillips, the founder 11 00:00:35,550 --> 00:00:38,730 Sean Aylmer: and CEO of Splash. Splash is among the world's most 12 00:00:38,760 --> 00:00:42,900 Sean Aylmer: advanced music technology companies and this month raised $ 27 million 13 00:00:43,260 --> 00:00:45,970 Sean Aylmer: in funding. Stephen, welcome to Fear and Greed and congratulations 14 00:00:45,970 --> 00:00:46,550 Sean Aylmer: on the funding. 15 00:00:46,920 --> 00:00:48,210 Stephen Phillips: Hi, Sean. Thank you very much. 16 00:00:49,540 --> 00:00:51,860 Sean Aylmer: Well, please let's start with the basics for my sake. 17 00:00:52,140 --> 00:00:53,930 Sean Aylmer: What exactly is the Metaverse? 18 00:00:54,720 --> 00:00:57,410 Stephen Phillips: Right. So the easiest way I think to explain it 19 00:00:57,470 --> 00:01:00,310 Stephen Phillips: is that it's the convergence of two of the biggest 20 00:01:00,310 --> 00:01:03,210 Stephen Phillips: trends in tech for the last decade or so. The 21 00:01:03,490 --> 00:01:06,240 Stephen Phillips: intersection of social media and gaming. So the way to 22 00:01:06,240 --> 00:01:09,679 Stephen Phillips: think about those two things converging. We're all familiar with 23 00:01:09,690 --> 00:01:13,610 Stephen Phillips: 3D games like Fortnite and GTA and things like that. Now 24 00:01:13,610 --> 00:01:16,360 Stephen Phillips: imagine instead of shooting people or stealing cars and stuff 25 00:01:16,360 --> 00:01:18,850 Stephen Phillips: you are running around a jungle or you are dancing 26 00:01:18,850 --> 00:01:20,420 Stephen Phillips: on a planet or you are hanging out with your 27 00:01:20,420 --> 00:01:23,220 Stephen Phillips: friends at a nightclub. The Metaverse is that... Is this 28 00:01:23,220 --> 00:01:27,030 Stephen Phillips: collection of persistent worlds, 3D worlds each with their own 29 00:01:27,030 --> 00:01:30,170 Stephen Phillips: purpose and activities. That could be games, it could be 30 00:01:30,170 --> 00:01:33,410 Stephen Phillips: just socializing and hanging out with friends or performing or 31 00:01:33,580 --> 00:01:36,390 Stephen Phillips: shopping or eventually politics and everything else that was in 32 00:01:36,390 --> 00:01:39,590 Stephen Phillips: social media making its way into this game world. Your 33 00:01:39,590 --> 00:01:42,319 Stephen Phillips: avatar, how you look in that space, persists as you 34 00:01:42,319 --> 00:01:45,800 Stephen Phillips: move between these spaces and your currency persists but everything 35 00:01:45,800 --> 00:01:47,230 Stephen Phillips: else is fluid. I can go in and out of 36 00:01:47,230 --> 00:01:51,380 Stephen Phillips: those worlds. Second Life is probably the first example and Roblox 37 00:01:51,380 --> 00:01:53,970 Stephen Phillips: where we've been for about 18 months is the clearest 38 00:01:53,970 --> 00:01:56,850 Stephen Phillips: representation of the Metaverse today and we consider it the 39 00:01:57,200 --> 00:01:58,350 Stephen Phillips: Myspace of the Metaverse. 40 00:01:58,590 --> 00:02:01,610 Sean Aylmer: Okay. So what you just said there which really clicked 41 00:02:01,810 --> 00:02:03,780 Sean Aylmer: for me in a sense is that you can have 42 00:02:03,780 --> 00:02:08,050 Sean Aylmer: a persona which can actually go across genres. 43 00:02:08,510 --> 00:02:11,769 Stephen Phillips: Yeah, that's right. So your avatar or your account, your 44 00:02:11,770 --> 00:02:15,109 Stephen Phillips: profile, just like it does on social media, it exists at the 45 00:02:15,110 --> 00:02:17,669 Stephen Phillips: platform level but instead of everybody just living on a 46 00:02:17,669 --> 00:02:21,440 Stephen Phillips: timeline or being in groups, you're going into other experiences 47 00:02:21,440 --> 00:02:24,079 Stephen Phillips: that third parties have developed. So it's a bit like 48 00:02:24,320 --> 00:02:27,820 Stephen Phillips: having an account on a Mac and then being able to play 49 00:02:27,820 --> 00:02:30,220 Stephen Phillips: different Mac games. But instead of having to register on 50 00:02:30,220 --> 00:02:33,320 Stephen Phillips: all those games they immediately pass your credentials and your 51 00:02:33,320 --> 00:02:36,059 Stephen Phillips: wallets and all your cash and stuff so you don't 52 00:02:36,060 --> 00:02:37,639 Stephen Phillips: have to keep signing up for everything. You can go in 53 00:02:37,840 --> 00:02:41,050 Stephen Phillips: and out of these experiences which makes it a really 54 00:02:41,050 --> 00:02:43,410 Stephen Phillips: interesting thing for developers to build on. Because all that stuff's 55 00:02:43,410 --> 00:02:47,190 Stephen Phillips: really hard in getting. But that stuff causes friction to 56 00:02:47,280 --> 00:02:49,690 Stephen Phillips: acquire users and keep them is you have to get them to sign 57 00:02:49,690 --> 00:02:50,860 Stephen Phillips: up and you have to get them to give you 58 00:02:51,070 --> 00:02:53,580 Stephen Phillips: their wallet. The Metaverse makes that easy for developers. 59 00:02:53,919 --> 00:02:57,130 Sean Aylmer: Okay. Three minutes in here Stephen and I am substantially 60 00:02:57,130 --> 00:02:59,900 Sean Aylmer: in front of where I was. So thank you. Good start. 61 00:03:00,210 --> 00:03:03,400 Sean Aylmer: Let's use Splash as an example, your company. I described it 62 00:03:03,400 --> 00:03:06,920 Sean Aylmer: as among the world's most advanced music technology companies. Tell 63 00:03:07,060 --> 00:03:09,070 Sean Aylmer: us first, how does it work? How does Splash work? 64 00:03:10,800 --> 00:03:13,490 Stephen Phillips: I've been in the music industry for 15 years. I've been in the music tech 65 00:03:13,490 --> 00:03:15,950 Stephen Phillips: for that whole time. I've been working on how do 66 00:03:15,950 --> 00:03:18,810 Stephen Phillips: you use AI or machine learning to help everyone make 67 00:03:18,810 --> 00:03:21,359 Stephen Phillips: music and for the last four or five years, we've 68 00:03:21,360 --> 00:03:24,410 Stephen Phillips: worked on that problem. And it turns out that people who need that most 69 00:03:24,530 --> 00:03:28,270 Stephen Phillips: are kids. The way that kids consume music... I'm talking 70 00:03:28,280 --> 00:03:30,120 Stephen Phillips: 15 and under. The way that they interact with the 71 00:03:30,120 --> 00:03:33,540 Stephen Phillips: world now is through gaming so our technology is built into a game. 72 00:03:33,850 --> 00:03:37,430 Stephen Phillips: So Splash is a game on Roblox that kids make music. 73 00:03:37,790 --> 00:03:40,700 Stephen Phillips: They go into these virtual clubs, they sign up to 74 00:03:40,700 --> 00:03:42,920 Stephen Phillips: perform on stage, they go on stage, they play a 75 00:03:42,920 --> 00:03:46,370 Stephen Phillips: live set, 60 seconds, 90 seconds, there's a live audience 76 00:03:46,370 --> 00:03:49,360 Stephen Phillips: watching them, depending on how they perform they get given 77 00:03:49,360 --> 00:03:52,500 Stephen Phillips: fame and earn coins from their performance. That's the game. 78 00:03:52,600 --> 00:03:54,500 Stephen Phillips: And the purpose of the game is to be the most 79 00:03:54,500 --> 00:03:58,820 Stephen Phillips: famous musician on Roblox. And we've had about 130 million plays. 80 00:03:58,820 --> 00:04:03,200 Stephen Phillips: We've got 7 million active players. Our top players have performed 81 00:04:03,200 --> 00:04:06,750 Stephen Phillips: over 10,000 times on stage. It's super addictive. They go 82 00:04:06,750 --> 00:04:09,050 Stephen Phillips: on stage and perform and they get the thrill of performing 83 00:04:09,050 --> 00:04:09,880 Stephen Phillips: live to each other. 84 00:04:10,180 --> 00:04:12,650 Sean Aylmer: When you say live, it is literally live in as much 85 00:04:12,660 --> 00:04:15,510 Sean Aylmer: as they are creating music and presenting it in a 86 00:04:15,510 --> 00:04:18,590 Sean Aylmer: virtual world to people who are listening to that music? 87 00:04:19,140 --> 00:04:22,789 Stephen Phillips: Yes, for sure. It's completely live. They're not only presenting music, 88 00:04:22,790 --> 00:04:25,330 Stephen Phillips: they put on a whole show. Right? We sell them 89 00:04:25,760 --> 00:04:28,510 Stephen Phillips: merchandise speakers, light shows, smoke machines and a whole lot 90 00:04:28,510 --> 00:04:31,179 Stephen Phillips: of DJ effects like gravity bombs. So halfway through the set, 91 00:04:31,180 --> 00:04:33,020 Stephen Phillips: they can set off a bomb where everyone in the 92 00:04:33,020 --> 00:04:35,480 Stephen Phillips: audience gets thrown up into the air or light shows 93 00:04:35,480 --> 00:04:38,420 Stephen Phillips: go off. So they practice to put on the best 94 00:04:38,420 --> 00:04:41,630 Stephen Phillips: performance they can because they're trying to win the adulation 95 00:04:41,630 --> 00:04:43,770 Stephen Phillips: and fame of the audience. And we've got players who 96 00:04:43,770 --> 00:04:45,479 Stephen Phillips: are legitimate celebrities in the game. 97 00:04:45,830 --> 00:04:48,520 Sean Aylmer: Okay. Do you need musical ability to play the game? 98 00:04:48,930 --> 00:04:50,970 Stephen Phillips: Yes. So they play this thing we call a Splash 99 00:04:50,970 --> 00:04:53,930 Stephen Phillips: Pad which is this virtual instrument we've designed. There's been 100 00:04:53,930 --> 00:04:57,360 Stephen Phillips: a trend in music creation over the last 15, 20 years 101 00:04:57,360 --> 00:05:00,560 Stephen Phillips: where most of the modern music you hear nowadays are 102 00:05:00,740 --> 00:05:03,180 Stephen Phillips: combinations of loops that are set well samples that are 103 00:05:03,180 --> 00:05:06,320 Stephen Phillips: played and put together by music producers using software they 104 00:05:06,320 --> 00:05:09,029 Stephen Phillips: call DAWs (Digital Audio Workstations). One of the most popular ways they play 105 00:05:09,029 --> 00:05:11,620 Stephen Phillips: that live is a beat pad, a launch pad style 106 00:05:11,620 --> 00:05:14,680 Stephen Phillips: thing where essentially you turn loops on and off. And 107 00:05:14,910 --> 00:05:18,279 Stephen Phillips: the skill is arrangement and also choosing which samples go 108 00:05:18,279 --> 00:05:20,990 Stephen Phillips: best together and in what sequence. So there's a definite 109 00:05:21,310 --> 00:05:24,290 Stephen Phillips: musical skill there but also it's more about performance and 110 00:05:24,290 --> 00:05:27,150 Stephen Phillips: triggering dance moves and special effects and light shows while 111 00:05:27,150 --> 00:05:29,820 Stephen Phillips: they're turning samples on and off. If you ask the 112 00:05:29,820 --> 00:05:33,350 Stephen Phillips: players and you say to them, " Did you make that song?" They'd say, " I 113 00:05:33,350 --> 00:05:35,839 Stephen Phillips: totally made that song." So yes, there's a lot of 114 00:05:35,920 --> 00:05:37,550 Stephen Phillips: musical skill amongst the best players. 115 00:05:37,990 --> 00:05:40,380 Sean Aylmer: Stephen I come from a different world where basically you 116 00:05:40,380 --> 00:05:42,640 Sean Aylmer: went to the pub to listen to rock bands. The 117 00:05:42,640 --> 00:05:44,940 Sean Aylmer: great fantasy of mine used to be Bono. To stand 118 00:05:44,940 --> 00:05:47,190 Sean Aylmer: there in front of a huge audience and be able 119 00:05:47,190 --> 00:05:50,219 Sean Aylmer: to sing. That is the ultimate and in movies a 120 00:05:50,220 --> 00:05:53,289 Sean Aylmer: star is born when the woman goes out, Lady Gaga 121 00:05:53,290 --> 00:05:55,350 Sean Aylmer: goes out and starts performing in front of a live 122 00:05:55,350 --> 00:05:59,240 Sean Aylmer: audience. To me that's the ultimate. This in a sense 123 00:05:59,520 --> 00:06:02,430 Sean Aylmer: will allow me to do it in my own virtual 124 00:06:02,430 --> 00:06:04,170 Sean Aylmer: world if I'm good enough. 125 00:06:04,450 --> 00:06:05,990 Stephen Phillips: Yes, that's right. It's still going to be good enough to 126 00:06:05,990 --> 00:06:07,659 Stephen Phillips: get there. The kids don't have to sit and watch 127 00:06:07,660 --> 00:06:10,800 Stephen Phillips: you. The audience don't need to be there. At any 128 00:06:10,800 --> 00:06:14,300 Stephen Phillips: point there's 400 or 500 venues happening and they can move freely 129 00:06:14,300 --> 00:06:17,330 Stephen Phillips: between venues and go to the bigger club, smaller club. We 130 00:06:17,330 --> 00:06:19,890 Stephen Phillips: have a ranking system where you progress from rookie all 131 00:06:19,890 --> 00:06:22,440 Stephen Phillips: the way through to superstar and legend and the top 132 00:06:22,440 --> 00:06:25,320 Stephen Phillips: players have people watch them more than the rookies who 133 00:06:25,320 --> 00:06:27,909 Stephen Phillips: no one really watches, only other rookies and stuff. So 134 00:06:28,320 --> 00:06:30,150 Stephen Phillips: yes, it's a chance to have that obsession. And the 135 00:06:30,150 --> 00:06:33,310 Stephen Phillips: Metaverse, let's call it a virtual world, whatever it is, the 136 00:06:33,310 --> 00:06:36,700 Stephen Phillips: Roblox platform allows... I'm in the clubs with kids from 137 00:06:36,700 --> 00:06:39,950 Stephen Phillips: Korea and a bunch of players from France and a bunch of 138 00:06:39,950 --> 00:06:42,150 Stephen Phillips: Americans and there are just people from all around the world who 139 00:06:42,150 --> 00:06:46,740 Stephen Phillips: are in that club. There's kids who hang around rock 140 00:06:46,740 --> 00:06:50,100 Stephen Phillips: clubs, there's hiphop clubs, there's all types of things. The clubs 141 00:06:50,100 --> 00:06:53,150 Stephen Phillips: themselves are now actually designed and created by the players. 142 00:06:53,210 --> 00:06:55,839 Stephen Phillips: So we don't create those venues any anyway. 143 00:06:56,410 --> 00:06:59,180 Sean Aylmer: Okay. I'm getting a good picture. I think I'm going to miss trying 144 00:06:59,180 --> 00:07:00,740 Sean Aylmer: to get the taxi home late at night. I'm going 145 00:07:00,839 --> 00:07:03,140 Sean Aylmer: to miss the idiot next to be elbowing me as 146 00:07:03,140 --> 00:07:06,039 Sean Aylmer: he or she dancing and things like that. But in a sense 147 00:07:06,190 --> 00:07:09,409 Sean Aylmer: for many people, they're literally sitting at home but experiencing 148 00:07:09,410 --> 00:07:11,530 Sean Aylmer: a lot of that sort. I mean, they're not experiencing 149 00:07:11,630 --> 00:07:15,530 Sean Aylmer: those physical things but the sensations in a sense they're experiencing. 150 00:07:16,010 --> 00:07:19,330 Stephen Phillips: Yes, for sure. It doesn't replace festivals, it doesn't replace 151 00:07:19,700 --> 00:07:22,500 Stephen Phillips: going to clubs, it augments that. And it appeals to 152 00:07:22,750 --> 00:07:26,070 Stephen Phillips: a generation who enjoy that stuff. People go to music 153 00:07:26,070 --> 00:07:28,560 Stephen Phillips: festivals not to see the band, that's a big part 154 00:07:28,560 --> 00:07:30,510 Stephen Phillips: of it, but they go there for the social aspect 155 00:07:30,510 --> 00:07:32,090 Stephen Phillips: and the fun and the games and all of that. 156 00:07:32,090 --> 00:07:35,050 Stephen Phillips: So it's not wild to us that that would translate pretty 157 00:07:35,050 --> 00:07:36,580 Stephen Phillips: well into the virtual space as well. 158 00:07:37,040 --> 00:07:38,780 Sean Aylmer: Stay with me Stephen and we'll be back in a 159 00:07:38,780 --> 00:07:39,110 Sean Aylmer: minute. 160 00:07:44,120 --> 00:07:47,850 Sean Aylmer: I'm speaking to Stephen Phillips, founder and CEO of Splash. 161 00:07:48,230 --> 00:07:50,640 Sean Aylmer: Okay. Now this has been a long time coming and you've been in this 162 00:07:50,640 --> 00:07:52,869 Sean Aylmer: music tech industry as you said for 15 years or 163 00:07:52,870 --> 00:07:56,100 Sean Aylmer: so, how much of it has been propelled by COVID- 19 164 00:07:56,100 --> 00:07:59,250 Sean Aylmer: though? Has it accelerated this Metaverse world? 165 00:08:00,200 --> 00:08:03,270 Stephen Phillips: For sure. I think the platform Roblox, it went on 166 00:08:03,270 --> 00:08:06,080 Stephen Phillips: a tear. I think they did their IPO sometime earlier 167 00:08:06,080 --> 00:08:09,270 Stephen Phillips: this year. They've grown, we've grown, all the game developers 168 00:08:09,270 --> 00:08:12,710 Stephen Phillips: we've seen. When kids are stuck at home, they love 169 00:08:12,710 --> 00:08:14,800 Stephen Phillips: it. And they're able to stay, play games as long 170 00:08:14,800 --> 00:08:17,140 Stephen Phillips: as they can and we're seeing in that first couple of 171 00:08:17,140 --> 00:08:19,920 Stephen Phillips: months when COVID hit the engagement numbers were massive. Our top 172 00:08:19,920 --> 00:08:22,760 Stephen Phillips: players are spending five to six hours a day in 173 00:08:22,760 --> 00:08:25,920 Stephen Phillips: the game. The elite ones are spending longer than that. 174 00:08:26,730 --> 00:08:28,960 Stephen Phillips: It's been a bit different since Americans went back to 175 00:08:28,960 --> 00:08:32,080 Stephen Phillips: school but the feeling has been all the games companies 176 00:08:32,150 --> 00:08:34,070 Stephen Phillips: have seen a big spike in engagement. 177 00:08:34,420 --> 00:08:38,330 Sean Aylmer: Okay. Do you think that there'll be some backlash around 178 00:08:38,330 --> 00:08:42,590 Sean Aylmer: privacy, around just what it's doing with kids, all those 179 00:08:42,590 --> 00:08:43,280 Sean Aylmer: usual things? 180 00:08:44,750 --> 00:08:47,809 Stephen Phillips: Yes, I think so. I don't know about the privacy stuff. 181 00:08:47,850 --> 00:08:50,819 Stephen Phillips: Maybe now Zuckerberg's got involved. They seem to bring that 182 00:08:50,820 --> 00:08:53,370 Stephen Phillips: with them. There hasn't been a lot of complaints about that. 183 00:08:53,480 --> 00:08:56,260 Stephen Phillips: It's a weird one about privacy because no one is 184 00:08:56,380 --> 00:09:01,320 Stephen Phillips: themselves in these places. That's the purpose of it. Everyone's role playing, right? 185 00:09:01,330 --> 00:09:03,559 Stephen Phillips: They're pretending to be somebody else. So what does privacy 186 00:09:03,559 --> 00:09:05,880 Stephen Phillips: mean when I'm a hot dog? Or I'm an old 187 00:09:05,880 --> 00:09:09,740 Stephen Phillips: lady in a wheelchair? There are literally people dressed as 188 00:09:09,740 --> 00:09:12,870 Stephen Phillips: old ladies in wheelchairs. So what does privacy mean? Now, 189 00:09:12,870 --> 00:09:15,240 Stephen Phillips: the obsession that kids have with it, that's a different thing. 190 00:09:15,240 --> 00:09:17,890 Stephen Phillips: And it's up to parents I think to understand what 191 00:09:17,890 --> 00:09:20,000 Stephen Phillips: these things are and find a balanced life too. They 192 00:09:20,020 --> 00:09:23,630 Stephen Phillips: should understand that... I noticed there was an outage over 193 00:09:23,630 --> 00:09:26,120 Stephen Phillips: the weekend on Roblox and we watched closely to see 194 00:09:26,120 --> 00:09:30,140 Stephen Phillips: how the community responded and it wasn't, I want to 195 00:09:30,140 --> 00:09:32,699 Stephen Phillips: play my game it was I can't see my friends. 196 00:09:33,400 --> 00:09:36,170 Stephen Phillips: This is not a gaming platform. This is their version 197 00:09:36,170 --> 00:09:39,510 Stephen Phillips: of social media. So it's like for us Facebook or 198 00:09:40,010 --> 00:09:42,819 Stephen Phillips: our email going offline or our text messages and now 199 00:09:42,820 --> 00:09:45,220 Stephen Phillips: we can't communicate with our family and friends. This is 200 00:09:45,220 --> 00:09:48,210 Stephen Phillips: their family and friends. A lot of kids are closer 201 00:09:48,210 --> 00:09:50,500 Stephen Phillips: to kids there than they are at their own school. 202 00:09:50,500 --> 00:09:53,170 Stephen Phillips: So cutting them off from that I think is a 203 00:09:53,200 --> 00:09:53,929 Stephen Phillips: dangerous thing. 204 00:09:54,380 --> 00:09:57,089 Sean Aylmer: So looking ahead five, ten years, what do you think this 205 00:09:57,090 --> 00:09:58,790 Sean Aylmer: world will look like? 206 00:09:58,790 --> 00:10:02,080 Stephen Phillips: I think it's going to get a lot bigger. The venues are going 207 00:10:02,080 --> 00:10:03,730 Stephen Phillips: to get a lot bigger. You're going to see a 208 00:10:03,730 --> 00:10:06,260 Stephen Phillips: lot more varied experiences. All this money that's about to 209 00:10:06,260 --> 00:10:09,110 Stephen Phillips: flow in from the big tech companies have been looking at it. 210 00:10:09,309 --> 00:10:12,740 Stephen Phillips: Zuckerberg and those guys, they invested in Oculus in 2014. 211 00:10:12,740 --> 00:10:15,709 Stephen Phillips: They've been investing in this tech around VR (Virtual Reality) and AR (Augmented Reality) and all that 212 00:10:15,710 --> 00:10:18,710 Stephen Phillips: stuff for a long time. They're trying to get brands 213 00:10:18,710 --> 00:10:21,760 Stephen Phillips: in there. If they can bring companies who haven't really joined the game, 214 00:10:21,870 --> 00:10:23,990 Stephen Phillips: if they start to really come into game in big 215 00:10:23,990 --> 00:10:27,109 Stephen Phillips: numbers just not sponsoring a few players or running some 216 00:10:27,110 --> 00:10:30,550 Stephen Phillips: ads but actually start to set up meaningful experiences then 217 00:10:30,550 --> 00:10:33,240 Stephen Phillips: that'll be a huge shift. You're bringing the world's economy 218 00:10:33,240 --> 00:10:36,160 Stephen Phillips: inside of these game lands and eventually it's going to happen, right? 219 00:10:36,160 --> 00:10:38,260 Stephen Phillips: The gaming industry's going to eat the software industry. That's 220 00:10:38,260 --> 00:10:41,920 Stephen Phillips: been a meme for 15 years and it's gradually coming true. 221 00:10:42,400 --> 00:10:45,360 Sean Aylmer: Yes. The Wall Street Journal was running a story recently 222 00:10:45,360 --> 00:10:50,579 Sean Aylmer: about Nike taking out digital trademarks to introduce into that virtual world, 223 00:10:50,580 --> 00:10:52,770 Sean Aylmer: which I think is exactly what you are saying there. 224 00:10:53,160 --> 00:10:57,099 Sean Aylmer: Once those huge players get involved, I mean, it might 225 00:10:57,100 --> 00:10:59,490 Sean Aylmer: be virtual but it is actually reality when you're selling 226 00:10:59,490 --> 00:11:01,240 Sean Aylmer: all your products in a virtual world. 227 00:11:01,679 --> 00:11:03,949 Stephen Phillips: Yes. That's right. Well, all the biggest companies in the world are 228 00:11:03,950 --> 00:11:06,880 Stephen Phillips: virtual now so it'll make sense for them to become tech companies. Right? 229 00:11:07,260 --> 00:11:10,300 Sean Aylmer: Yes. Yes. Now look Splash itself, you've just raised $ 27 230 00:11:10,300 --> 00:11:13,270 Sean Aylmer: million in funding. What's that mean? What are the plans? 231 00:11:13,750 --> 00:11:17,010 Stephen Phillips: Well, investors were Amazon and a company out of Germany 232 00:11:17,010 --> 00:11:17,230 Stephen Phillips: called BITKRAFT. 233 00:11:17,730 --> 00:11:18,730 Sean Aylmer: Yes. Great names. 234 00:11:20,290 --> 00:11:22,850 Stephen Phillips: BITKRAFT is the biggest VC in the gaming industry now and they think what 235 00:11:22,890 --> 00:11:25,020 Stephen Phillips: we are doing with entertainment is a glimpse of what 236 00:11:25,480 --> 00:11:28,250 Stephen Phillips: entertainment will look like in here. Our competitors have been... 237 00:11:29,010 --> 00:11:31,210 Stephen Phillips: They work with the elite superstars of the world and 238 00:11:31,750 --> 00:11:34,410 Stephen Phillips: they go and capture a mocap (motion capture) video performance of them 239 00:11:34,410 --> 00:11:36,210 Stephen Phillips: outside and they bring it in and they present it 240 00:11:36,210 --> 00:11:38,920 Stephen Phillips: inside these games. And the kids are, " If I wanted 241 00:11:39,030 --> 00:11:40,850 Stephen Phillips: to watch a video, I'd go to YouTube. Why am 242 00:11:40,850 --> 00:11:43,729 Stephen Phillips: I watching this?" They want to perform. And they want 243 00:11:43,750 --> 00:11:46,719 Stephen Phillips: to play. And they want to play live. So we think 244 00:11:46,720 --> 00:11:50,490 Stephen Phillips: and our investors think that we've seen something and our 245 00:11:50,490 --> 00:11:52,510 Stephen Phillips: plan is to seize the moment there and see if we 246 00:11:52,510 --> 00:11:55,500 Stephen Phillips: can dominate entertainment in this space. So we want to 247 00:11:55,860 --> 00:11:58,610 Stephen Phillips: heavily invest in improving the music we make right now. 248 00:11:58,610 --> 00:12:02,199 Stephen Phillips: We really only have DJs. But as our biggest release 249 00:12:02,200 --> 00:12:04,160 Stephen Phillips: in the next six months is we're bringing band so 250 00:12:04,160 --> 00:12:07,059 Stephen Phillips: that whole groups of kids can go on stage together 251 00:12:07,059 --> 00:12:09,780 Stephen Phillips: and play a range of different instruments and perform. Maybe 252 00:12:09,780 --> 00:12:12,130 Stephen Phillips: one day you can be on stage yourself and be 253 00:12:12,130 --> 00:12:13,480 Stephen Phillips: a singer in one of these bands. 254 00:12:13,760 --> 00:12:17,770 Sean Aylmer: I'm not sure I like the tone of that particular comment, Stephen. 255 00:12:18,540 --> 00:12:20,480 Sean Aylmer: After this interview, I'm actually going to go and have 256 00:12:20,480 --> 00:12:22,240 Sean Aylmer: a look because I might have a hidden talent. 257 00:12:22,520 --> 00:12:26,710 Stephen Phillips: You might have a hidden talent. You obviously have a flair for the superlatives there. So 258 00:12:26,710 --> 00:12:28,500 Stephen Phillips: I'm sure you'll do well. 259 00:12:28,740 --> 00:12:31,020 Sean Aylmer: Maybe I'm the lyricist rather than the musician perhaps. 260 00:12:31,429 --> 00:12:36,059 Stephen Phillips: Yes. So we are doubling on the entertainment side but there's a real chance for us to... Our 261 00:12:36,059 --> 00:12:39,070 Stephen Phillips: players who spend a lot of time there. It's funny 262 00:12:39,070 --> 00:12:42,260 Stephen Phillips: how the like people in the music industry say, how are you 263 00:12:42,260 --> 00:12:44,569 Stephen Phillips: going to try and help them become real musicians? And 264 00:12:45,000 --> 00:12:49,689 Stephen Phillips: that's not how they think. They have no interest in 265 00:12:49,690 --> 00:12:52,860 Stephen Phillips: becoming musicians outside. They want us to help them build 266 00:12:52,860 --> 00:12:55,460 Stephen Phillips: a career in the virtual space. So we're going to 267 00:12:55,460 --> 00:12:57,970 Stephen Phillips: double down on building new tools that help them develop 268 00:12:57,970 --> 00:13:00,270 Stephen Phillips: their fan bases in the game and help them monetise 269 00:13:00,270 --> 00:13:02,479 Stephen Phillips: their talent in the game. So the players who were 270 00:13:02,600 --> 00:13:04,990 Stephen Phillips: the legitimate stars, it seems a bit weird now to 271 00:13:05,330 --> 00:13:08,920 Stephen Phillips: think but at some point YouTubers, wasn't a thing and 272 00:13:09,600 --> 00:13:11,730 Stephen Phillips: TikTokers wasn't a thing until it was a thing. And now 273 00:13:11,730 --> 00:13:14,230 Stephen Phillips: it's a career. And we think if not us someone 274 00:13:14,230 --> 00:13:17,280 Stephen Phillips: is going to turn what we do into a legitimate musical career. 275 00:13:17,280 --> 00:13:21,610 Sean Aylmer: Yes. I mean as you said before it augments live music. 276 00:13:21,720 --> 00:13:22,640 Sean Aylmer: It doesn't replace it. 277 00:13:23,070 --> 00:13:23,780 Stephen Phillips: Yes. That's right. 278 00:13:24,010 --> 00:13:26,070 Sean Aylmer: Stephen. Thank you very much for talking to Fear and Greed. 279 00:13:26,370 --> 00:13:26,780 Stephen Phillips: Thank you, Sean. 280 00:13:27,370 --> 00:13:30,929 Sean Aylmer: That was Stephen Phillips, founder and CEO of Splash. This 281 00:13:30,929 --> 00:13:33,109 Sean Aylmer: is the Fear and Greed Daily Interview. Join me every 282 00:13:33,110 --> 00:13:35,600 Sean Aylmer: morning for the full Fear and Greed podcast with all 283 00:13:35,600 --> 00:13:37,939 Sean Aylmer: the business news you need to know. I'm Sean Aylmer, 284 00:13:38,480 --> 00:13:39,050 Sean Aylmer: enjoy your day.