WEBVTT - Jeffrey Katzenberg, Meg Whitman Share Their Plan to Shake Up Mobile Media 0:00:06.160 --> 0:00:09.840 Welcome to another episode of the Strictly Business podcast, where 0:00:09.840 --> 0:00:12.119 we talk with some of the brightest minds working in 0:00:12.119 --> 0:00:15.520 the media business today. On Variety co editor in chief 0:00:15.560 --> 0:00:18.880 Andrew Wallenstein, I'm asked what I think about a wide 0:00:19.040 --> 0:00:22.560 range of ventures here in Hollywood, but none lately more 0:00:22.640 --> 0:00:27.040 so than something called Quimby. That's the new mobile video 0:00:27.080 --> 0:00:29.800 app in the works from two legends from media and 0:00:29.840 --> 0:00:34.440 tech circles, former Disney and DreamWorks Animation chief Jeffrey Katzenberg 0:00:34.880 --> 0:00:39.360 and former Hewlert Packard CEO Meg Whitman. My conversation with 0:00:39.440 --> 0:00:42.559 them was recorded from the stage of the Innovate Summit 0:00:43.000 --> 0:00:46.880 in Los Angeles on December five. I hope you enjoy. 0:00:48.960 --> 0:00:51.760 For those who have been under a rock this past 0:00:51.840 --> 0:00:54.840 year or so, let's get the elevator pitch out on 0:00:54.960 --> 0:00:58.200 what you guys have been working on. Uh, talk about 0:00:58.520 --> 0:01:01.440 the state of Quimby. Yeah. Well, first of all, thank 0:01:01.440 --> 0:01:03.959 you for having us this morning. We're delighted to be here. Um. 0:01:04.120 --> 0:01:08.399 So we are building the first entertainment platform built mobile 0:01:08.520 --> 0:01:12.400 only for quick bite meaning short form under ten minutes 0:01:12.520 --> 0:01:16.559 quick bite content made by Hollywood's top creators. And uh, 0:01:16.680 --> 0:01:19.400 we have really been in business we raised our initial 0:01:19.440 --> 0:01:21.560 funding ground which we closed on July thirty one, So 0:01:21.560 --> 0:01:25.520 we've been in business effectively since August one. And uh, 0:01:25.600 --> 0:01:28.720 we are commissioning content, we are building the tech platform. 0:01:28.760 --> 0:01:31.160 We are hiring people. I think today we're at forty 0:01:31.160 --> 0:01:35.560 eight people, up from five on August one, and um, 0:01:35.600 --> 0:01:38.639 we are super excited about the opportunity that lies ahead. 0:01:38.959 --> 0:01:41.399 The name is a contraction of quick bites, which is 0:01:41.440 --> 0:01:43.640 what we have called this content for a long period 0:01:43.680 --> 0:01:46.280 of time. And so it's a contraction of quick bites. 0:01:46.319 --> 0:01:48.920 And people seem to like Quimby. You know, it's memorable, 0:01:48.920 --> 0:01:51.000 It rolls off people's tongue. It says what we do. 0:01:51.520 --> 0:01:54.080 And uh, so we're we're off and running and we're 0:01:54.080 --> 0:01:58.000 excited about it. And what is the roadmap ahead? You 0:01:58.000 --> 0:02:01.320 guys are developing stuff. You have some interesting projects that 0:02:01.320 --> 0:02:05.120 you're starting to announce. Uh, Jeffrey, what do you what 0:02:05.160 --> 0:02:07.560 do you see the next twelve months looking like for Quimby? Well, 0:02:07.600 --> 0:02:10.000 I think it's a it's a lot of things, and 0:02:10.560 --> 0:02:14.440 you know, I think may can expand on a good 0:02:14.520 --> 0:02:21.040 part of it. Um. But from a content standpoint, UM, 0:02:21.080 --> 0:02:24.520 we have to achieve two essential things for this to 0:02:24.560 --> 0:02:29.600 be successful one which is, as we have discussed, UM 0:02:29.840 --> 0:02:34.040 raised the quality to an unprecedented level, and which is 0:02:34.080 --> 0:02:39.440 make said we bring the very best quality, production, talent, 0:02:40.000 --> 0:02:45.520 financial resources UM to UM. Uh. You know what has 0:02:45.560 --> 0:02:49.600 been this world of UM. You know, pretty amazing work 0:02:49.639 --> 0:02:53.760 that's gone on on YouTube, Facebook, Instagram, snapchat. UM. But 0:02:54.080 --> 0:02:57.280 we're looking to do something at a pretty high level. 0:02:57.320 --> 0:02:59.560 And we can talk a little bit and give you 0:02:59.600 --> 0:03:02.119 a good and allergy about that. But at the same time, 0:03:02.120 --> 0:03:05.720 we also have to achieve a phenomenal volume of content. 0:03:06.200 --> 0:03:08.919 So just to put in perspective, once we go live, 0:03:09.760 --> 0:03:13.720 we will deliver in the first twelve months five thousand 0:03:14.240 --> 0:03:18.079 quick bites. So it's a it's a high bar. So 0:03:18.560 --> 0:03:21.240 on the content side, it's building the team out. Remember 0:03:21.280 --> 0:03:24.400 we don't produce anything. We commission our content. We are 0:03:24.440 --> 0:03:32.040 a licensor of content from everybody in the production Hollywood ecosystem. UH, 0:03:32.080 --> 0:03:35.040 you know, at the highest ends of it. UM. But 0:03:35.360 --> 0:03:39.400 at the same time, UH, we have to build UM 0:03:39.520 --> 0:03:43.920 a user experience UM in the way in which this 0:03:44.080 --> 0:03:48.240 unique content is consumed in an equally unique way. And 0:03:48.320 --> 0:03:52.000 so in the world of product, which is how people 0:03:52.000 --> 0:03:56.200 are actually going to experience and be served up our content. 0:03:56.840 --> 0:04:00.560 Mega's put together a world class engineering team and product 0:04:00.720 --> 0:04:04.720 development team, and that bar for us is as essential 0:04:04.840 --> 0:04:08.440 and as high UM. So there's there's a lot of 0:04:08.480 --> 0:04:11.120 things to get on our to do list. Do you 0:04:11.120 --> 0:04:13.320 guys at this point know when you're going to be 0:04:13.400 --> 0:04:18.320 in market, So either the last part of or the 0:04:18.360 --> 0:04:22.480 first quarter probably, and it just depends on what's going 0:04:22.520 --> 0:04:24.440 on in the marketplace and how ready we are. We 0:04:24.480 --> 0:04:26.560 have one chance to launch, and we needed to be 0:04:26.600 --> 0:04:29.080 as absolutely close to perfect as it can possibly be 0:04:29.160 --> 0:04:32.640 from a content perspective and engineering perspective. So we'll see 0:04:32.800 --> 0:04:35.880 from the biggest challenge and we know this right now, 0:04:35.960 --> 0:04:38.800 is the volume of content to you know, to hit 0:04:38.839 --> 0:04:42.640 this quality that we want and the quantity UM. It's 0:04:42.680 --> 0:04:45.240 a tall order to deliver that in the next twelve months, 0:04:45.279 --> 0:04:47.640 but that doesn't mean we're not going to try. UM 0:04:47.680 --> 0:04:51.279 So we're giving ourselves a lot of flexibility where we're 0:04:51.279 --> 0:04:54.640 not going to get locked into something. As Meg said, 0:04:55.040 --> 0:04:57.400 when we come we have to hit a home run. 0:04:57.520 --> 0:04:59.600 I think what people sometimes forget is this is the 0:04:59.640 --> 0:05:03.640 first UM platform that has ever been launched without a library. 0:05:03.800 --> 0:05:06.440 There's no library to buy because no one has done 0:05:06.480 --> 0:05:09.880 this quality content in this format, and so every bit 0:05:09.920 --> 0:05:12.480 of content has to be made de novo with our 0:05:13.040 --> 0:05:16.240 with our partners. And it's the format question I want 0:05:16.240 --> 0:05:19.160 to dig into first, because you guys are are It's 0:05:19.160 --> 0:05:22.039 not that short form content doesn't exist, but you're doing 0:05:22.040 --> 0:05:25.600 it at a level that I don't think it's existed 0:05:25.640 --> 0:05:28.760 at volume. So when you're out there talking to the 0:05:28.800 --> 0:05:32.600 creative community, how do you even pitch this? Are they 0:05:32.680 --> 0:05:36.600 even thinking in five ten minute bites? Well, here's the 0:05:37.040 --> 0:05:39.560 I think. I think that's where and that's why we 0:05:40.360 --> 0:05:45.000 are trying to UM move ourselves into something where we're 0:05:45.040 --> 0:05:48.159 not in the short form business. It's why we sort 0:05:48.200 --> 0:05:51.040 of are embracing this idea of quick bites. And let 0:05:51.040 --> 0:05:55.240 me try and put that into context. UM. For for us, 0:05:56.080 --> 0:06:01.320 a lighthouse show is um a two to three hour 0:06:01.520 --> 0:06:07.000 story that you can actually consume in bites that are 0:06:07.120 --> 0:06:12.920 under ten minutes. UM. This is the convergence of two 0:06:13.040 --> 0:06:19.680 very try, true, tested and phenomenally successful existing forms of 0:06:20.120 --> 0:06:26.039 um UH filmed media. So what does that mean? So 0:06:26.120 --> 0:06:30.920 for the beginning, at the the beginning of the twentieth century, UH, 0:06:31.000 --> 0:06:33.800 we pioneered out on this path our industry and we 0:06:33.880 --> 0:06:39.719 made movies, and they quickly migrated into storytelling that is 0:06:39.720 --> 0:06:43.480 two to three hours in length, and that has worked 0:06:43.480 --> 0:06:46.520 and continues to this to the to today to be 0:06:46.720 --> 0:06:51.839 a widely accepted form of narrative film storytelling. In the 0:06:51.839 --> 0:06:56.159 middle of the twentieth century, television came along, and now 0:06:56.320 --> 0:07:00.440 we found a new form of narrative storytelling which posibly, 0:07:00.760 --> 0:07:04.719 not exclusively, but principally is in one hour chunks, and 0:07:05.000 --> 0:07:11.280 was formed and formatted to fit into broadcast television. And 0:07:11.440 --> 0:07:15.840 so for seventy years, uh many of the greatest talents 0:07:15.840 --> 0:07:22.080 and showrunners creators have been delivering their stories in chapters. 0:07:22.840 --> 0:07:25.480 We call them act breaks. In this town. The first 0:07:25.480 --> 0:07:27.440 act of this is US is eight and a half minutes. 0:07:27.720 --> 0:07:31.160 There's then a break, and there are five of them, 0:07:31.240 --> 0:07:34.080 and then they deliver a forty two minutes show. And 0:07:34.120 --> 0:07:37.480 it's not you know, forty one forty one week and 0:07:37.520 --> 0:07:40.800 forty two ten the next week. In it it's to 0:07:41.000 --> 0:07:44.680 the second forty two minutes. And so this idea that 0:07:44.720 --> 0:07:50.240 we're contracting together these two tried, true, tested, you know sciences, 0:07:50.440 --> 0:07:52.720 which it's a it's a proven science with a new 0:07:52.760 --> 0:07:55.880 application to it. The example which I've given to you 0:07:56.000 --> 0:07:58.760 before and you've actually written about before. Is what happened 0:07:58.800 --> 0:08:03.560 in publishing where Dan Brown just he was the one 0:08:03.600 --> 0:08:06.000 that just made the greatest impression on me. Is neither 0:08:06.040 --> 0:08:07.720 the first nor the only to do it. It's just 0:08:07.760 --> 0:08:11.040 the one that really, you know, landed for me. Is 0:08:11.280 --> 0:08:13.920 he wrote the Da Vinci Codes FO sixty four pages 0:08:14.040 --> 0:08:16.680 long and the has a hundred and five chapters. The 0:08:16.720 --> 0:08:19.880 average chapter is less than five minutes. So I get it. 0:08:19.960 --> 0:08:23.720 By innovating in terms of the increments of content, you 0:08:23.720 --> 0:08:26.400 guys are going to do something that feels more conducive 0:08:26.440 --> 0:08:30.120 to the mobile experience as opposed to TV or film. 0:08:30.200 --> 0:08:34.440 But is it possible that what mobile is about is 0:08:34.559 --> 0:08:40.120 giving people the ability not to consume these new shorter increments, 0:08:40.520 --> 0:08:44.560 but to go through films and TVs at their own pace, 0:08:45.040 --> 0:08:48.079 stopping and starting at their own leisure. So I think 0:08:48.080 --> 0:08:50.120 one of the things to consider is, remember Jeffrey said, 0:08:50.120 --> 0:08:51.960 we are not a studio, so we don't make any 0:08:51.960 --> 0:08:54.319 of our own content. But the other thing people often 0:08:54.360 --> 0:08:57.200 forget is this is a very different use case. This 0:08:57.320 --> 0:08:59.840 is on the go viewing. So you leave your house 0:09:00.040 --> 0:09:01.760 Dray morning with a little TV in your pocket. It's 0:09:01.760 --> 0:09:03.959 called your smartphone. And during the day, think about it. 0:09:04.000 --> 0:09:06.400 You have these in between moments ten minutes here, five 0:09:06.400 --> 0:09:09.240 minutes here, fifteen minutes there where you want to see 0:09:09.280 --> 0:09:11.720 something great. And whether it's waiting in line at Starbucks 0:09:11.800 --> 0:09:13.360 or waiting for a meeting to start, or waiting for 0:09:13.400 --> 0:09:15.800 friends for lunch, or at a doctor's office. And so 0:09:15.840 --> 0:09:18.040 it's a very different use case, and people are looking 0:09:18.080 --> 0:09:20.800 for things that are of a you know, something that's 0:09:20.840 --> 0:09:23.439 really like a gem for that little moment in time. 0:09:23.720 --> 0:09:26.440 And again, Jeffrey said it. YouTube has done a fantastic job. 0:09:26.440 --> 0:09:29.040 It is the most democratized video platform in the world. 0:09:29.400 --> 0:09:30.839 But what we want to do is a little bit 0:09:30.840 --> 0:09:33.480 the analogy of what HBO did when they launched. HBO 0:09:33.559 --> 0:09:36.440 launched at the height of advertiser supported TV. And remember 0:09:36.480 --> 0:09:40.439 what their tagline was, We're not TV where Hbo and 0:09:40.720 --> 0:09:44.160 so we're not short form you know, YouTube, Snapchat, Instagram, 0:09:44.160 --> 0:09:46.360 we're quimby and so it will be that much of 0:09:46.360 --> 0:09:49.720 a step up in the quality and storytelling. And think 0:09:49.720 --> 0:09:53.200 of the four things that HBO did. They eliminated commercials, 0:09:53.400 --> 0:09:56.440 they freed the form and formats they were not behold 0:09:56.440 --> 0:10:00.640 in the thirty sixty all right, so so far check 0:10:00.720 --> 0:10:03.320 those new boxes for us. Third is they were not 0:10:03.400 --> 0:10:07.360 beholding the standards and practices, so they could make any content. 0:10:07.440 --> 0:10:10.120 You could have sex in the city, you could have sopranos, 0:10:10.160 --> 0:10:13.839 you have the wire in this. And third they they 0:10:13.880 --> 0:10:17.320 spent UH at a level of production that an AD 0:10:17.400 --> 0:10:20.320 supported world simply could not compete with. So they ordered 0:10:20.360 --> 0:10:23.760 ten episodes a Band of Brothers for a million dollars. 0:10:24.280 --> 0:10:27.120 You translate that to today, that's like thirty million dollars 0:10:27.120 --> 0:10:30.560 in episode. So we check all of those four boxes 0:10:30.600 --> 0:10:33.600 when we say we're not short form, we're Quimby. And 0:10:33.640 --> 0:10:36.840 so to bring that kind of quality of production and 0:10:36.920 --> 0:10:41.040 talent UH to this um, you know, I just think 0:10:41.080 --> 0:10:45.360 it is a singularly and and and unique experience to 0:10:45.400 --> 0:10:48.320 anything that's there today. But you guys are going to, 0:10:48.640 --> 0:10:52.600 you know, hopefully be the brand for the way this 0:10:52.640 --> 0:10:56.760 new format is known. What I'm wondering though, is is 0:10:56.800 --> 0:11:00.920 it less realistic to expect people to have a Quimby 0:11:01.000 --> 0:11:04.280 app on their phone for this kind of experience as 0:11:04.280 --> 0:11:08.520 opposed to fishing, where the fish are having Quimby live 0:11:08.800 --> 0:11:13.120 on the platforms where consumption is already taking place. Going 0:11:13.160 --> 0:11:16.400 to the Facebook Acto into snap Jacko on the Instagram. 0:11:16.600 --> 0:11:20.160 Why go it alone via your own branded app, because 0:11:20.240 --> 0:11:22.320 we want to. First of all, we think we can 0:11:22.440 --> 0:11:25.600 get the distribution and the go to market through our 0:11:25.720 --> 0:11:30.080 own content. I mean, we are making content with incredible actors, actresses, directors, 0:11:30.120 --> 0:11:34.559 producers and wonderful story Second, we will do distribution with 0:11:34.600 --> 0:11:36.720 some of the big tailcos, whether it's a Verizon or 0:11:36.840 --> 0:11:39.360 an A T and T. But importantly we're going to 0:11:39.440 --> 0:11:42.280 do something quite different with the tech platform here. And 0:11:42.360 --> 0:11:43.880 one of the things Jeffrey and are trying to do 0:11:43.960 --> 0:11:45.960 is to bring the best to Silicon Valley together with 0:11:46.000 --> 0:11:48.840 the best of Hollywood. So Jeffrey said it. But the 0:11:49.120 --> 0:11:53.199 user experience, the search and fine metaphor, the recommendation engine, 0:11:53.280 --> 0:11:57.080 how content looks on mobile needs to be completely upgraded 0:11:57.120 --> 0:11:59.960 and different today. I think you know, listen, lots of 0:12:00.000 --> 0:12:01.920 people watch mobile on their video. In fact, they're watching 0:12:01.960 --> 0:12:05.280 over sixty minutes. Our target audience of five year olds 0:12:05.360 --> 0:12:07.760 is watching about an hour a day. But it's not 0:12:08.320 --> 0:12:10.959 an optimized experience. Here's a great analogy for you. Think 0:12:11.000 --> 0:12:13.560 about what Apple and Samsung have done for photography on 0:12:13.600 --> 0:12:16.560 the mobile phone. It's remarkable. I mean, I take pictures, 0:12:16.559 --> 0:12:18.800 I feel like I'm a junior only any Leibowitz. I mean, 0:12:18.840 --> 0:12:22.200 it's amazing how good those devices have made all of 0:12:22.280 --> 0:12:25.560 us look as photographers, we want to work to have 0:12:25.840 --> 0:12:28.760 video look that good on the mobile, and there's all 0:12:28.840 --> 0:12:31.280 kinds of challenges with that, as you can imagine, right. 0:12:31.320 --> 0:12:33.120 But with the thing that strikes me then is you 0:12:33.160 --> 0:12:36.600 have two massive challenges in the sense of you've got 0:12:36.640 --> 0:12:39.719 to ramp up this new content format format at both 0:12:39.840 --> 0:12:45.000 quantity and quality, and the experience of watching that content 0:12:45.679 --> 0:12:49.320 is something that you just described as being quite a challenge. 0:12:49.600 --> 0:12:51.640 You know, we're here at the Innovade conference, we're talking 0:12:51.640 --> 0:12:55.720 about machine learning, artificial intelligence. Are you bringing those kind 0:12:55.800 --> 0:12:59.360 of technologies to bear here? Sure. So there's a couple 0:12:59.400 --> 0:13:01.360 of things. One is, remember we have to have a 0:13:01.400 --> 0:13:04.200 different search and find metaphor, and we have to have 0:13:04.400 --> 0:13:06.719 different personalization that exists today. I'll just give you a 0:13:06.760 --> 0:13:08.760 perfect example. As many of you know, it takes about 0:13:08.840 --> 0:13:11.520 eight minutes to find what you're looking for on Netflix. 0:13:11.880 --> 0:13:14.440 This cannot take eight minutes because the viewing window is 0:13:14.440 --> 0:13:17.040 ten minutes. So we almost have to know what you 0:13:17.080 --> 0:13:19.720 want to watch before you know you want to watch it. 0:13:20.240 --> 0:13:23.160 And so the good news is every piece of film 0:13:23.240 --> 0:13:25.680 that is on our platform is only there because we 0:13:25.760 --> 0:13:28.640 say it's there. It's highly curated, and everything will have 0:13:28.640 --> 0:13:31.120 a script. So think about we can apply meta tagging 0:13:31.320 --> 0:13:36.400 to every single frame, which allows behavioral analytics and AI 0:13:36.440 --> 0:13:39.679 to be much more accurate and predictive than it is 0:13:39.840 --> 0:13:43.440 if you are retrofitting lots of you know, older movies 0:13:43.520 --> 0:13:46.200 or older TV shows, it's harder to actually meta tag 0:13:46.280 --> 0:13:48.160 to the level that we're going to do it. The 0:13:48.200 --> 0:13:50.640 second is we have to instrument this site. And this 0:13:50.679 --> 0:13:52.640 is one of the great joys of being a technologist. 0:13:53.080 --> 0:13:55.720 I kept to build a tech platform with no legacy, 0:13:55.920 --> 0:13:57.800 which you know, if you've been in business for more 0:13:57.800 --> 0:13:59.960 than five years, you have a legacy tech platform. Maybe 0:14:00.000 --> 0:14:02.080 have a legacy tech platform at variety, I don't know, 0:14:03.280 --> 0:14:05.720 and uh. And so we will be able to instrument 0:14:05.760 --> 0:14:09.200 this where we have data on usage patterns, on watching, 0:14:09.280 --> 0:14:11.600 on what works, what doesn't, and we will be filtering 0:14:11.640 --> 0:14:14.720 that into our recommendation engine, our choice of what content 0:14:14.800 --> 0:14:16.640 to make, and things like that. So this ought to 0:14:16.679 --> 0:14:19.520 be state of the art from an AI, behavioral analytics, 0:14:19.680 --> 0:14:22.400 machine learning. But then let's go back to the art 0:14:22.400 --> 0:14:24.320 of it all. You know, you're both out there and 0:14:24.400 --> 0:14:28.760 the creative community talking to people. Uh do they get it? 0:14:28.960 --> 0:14:31.240 Do they do you give them the vision of how 0:14:31.280 --> 0:14:34.200 ten minutes storytelling works? Or or has there just been 0:14:34.200 --> 0:14:38.520 this long suppressed out there. I've been dying to tell 0:14:38.560 --> 0:14:41.720 this ten minutes story. Um, well again, I'm gonna keep 0:14:41.760 --> 0:14:43.640 coming back and saying to you, we're not asking people 0:14:43.680 --> 0:14:47.440 to tell ten minutes stories. We're actually asking them to 0:14:47.480 --> 0:14:51.080 tell two to four hour stories increments of ten. Okay, Well, 0:14:51.720 --> 0:14:54.440 there's a huge difference in that. Sorry, I and I 0:14:54.680 --> 0:14:59.400 And so the answer is is that the challenge, the excitement, 0:14:59.440 --> 0:15:05.240 the enthusi yasm, the opportunity to be pioneering and innovative 0:15:05.960 --> 0:15:09.880 is something that has gotten people enthusiastic and our industry 0:15:10.160 --> 0:15:12.640 in a way that I have to say, is kind 0:15:12.640 --> 0:15:15.440 of the wind beneath our wings right now. It's everybody 0:15:15.520 --> 0:15:18.120 wants to play. And I would say when I say 0:15:18.120 --> 0:15:20.280 everybody wants to play, I mean you look at the 0:15:20.320 --> 0:15:23.720 lineup of people we've already announced. You know, Anton Fuqua 0:15:23.880 --> 0:15:27.040 was out there actually shooting tests for us right now. Um, 0:15:27.200 --> 0:15:31.120 we have a new project. Katherine Hardwick, Um, you know 0:15:31.280 --> 0:15:35.760 who one of our leading amazing directors female directors today. 0:15:35.800 --> 0:15:40.480 She just committed to do a uh a new project 0:15:40.520 --> 0:15:42.480 with us, UM and I should make sure I say 0:15:42.520 --> 0:15:45.200 it all right here, which is how they made her UM, 0:15:45.240 --> 0:15:49.840 which was written by Jeff Leeber and Charlie McDowell McDonald UM, 0:15:49.880 --> 0:15:55.240 which is a really kind of fascinating story UM around 0:15:55.280 --> 0:15:59.640 a AI character, a real thriller, and she is actually 0:15:59.760 --> 0:16:03.160 out now shooting some tests uh for us as we speak. 0:16:03.640 --> 0:16:09.280 Um uh. But everyone from Anton Fuqua to uh uh, 0:16:09.360 --> 0:16:15.880 Giermo del Toro to um you know uh uh, you know, 0:16:15.960 --> 0:16:19.400 it's just it's been a there's so many names, Sam 0:16:19.480 --> 0:16:23.120 Rainy Uh. It's it's a good way. Lena Waite is 0:16:23.160 --> 0:16:26.920 doing this. Everybody's exciting. And by the way they're all pioneering. 0:16:27.000 --> 0:16:31.520 It's like we're not giving them some tight little box 0:16:31.560 --> 0:16:35.200 and asking them to, you know, to produce. We're actually 0:16:35.200 --> 0:16:39.960 just giving them sort of guardrails and saying experiment, you know, 0:16:40.600 --> 0:16:43.240 discover the path forward for us in it, and some 0:16:43.320 --> 0:16:46.360 insight about how these stories can be shot. So it 0:16:46.360 --> 0:16:48.880 looks better on mobile. So I don't most of you 0:16:48.880 --> 0:16:50.840 probably have watched some things on your mobile and it 0:16:50.880 --> 0:16:53.960 often looks quite dark, doesn't it. Well, that's because the 0:16:54.000 --> 0:16:56.320 actual shows need to be shot with more contrast to 0:16:56.440 --> 0:16:59.560 begin with. Right and then and when you're on mobile, 0:16:59.600 --> 0:17:01.480 you go from this environment which is quite dark, to 0:17:01.760 --> 0:17:03.920 right outside in the lobby to outside on the sidewalk, 0:17:04.040 --> 0:17:07.960 and you're changing light environments and it becomes increasingly more 0:17:07.960 --> 0:17:11.359 difficult or easier to watch the video. So there's visual 0:17:11.400 --> 0:17:13.399 optimization that we need to be able to do. And 0:17:13.680 --> 0:17:15.119 one of the things that we've been able to do. 0:17:15.160 --> 0:17:17.040 We have a test of this is you know when 0:17:17.080 --> 0:17:19.399 you go to if you have Apple phones, you go 0:17:19.480 --> 0:17:21.919 to that brightness slider in the your settings. Well, we 0:17:22.000 --> 0:17:24.160 now have moved that into the app where you can 0:17:24.200 --> 0:17:27.320 just use your fingers to change the brightness while you 0:17:27.359 --> 0:17:30.119 are in app, So as you move from spot to spot, 0:17:30.359 --> 0:17:32.879 you're not exiting the app going to settings, changing it 0:17:32.920 --> 0:17:34.679 and coming back. Which was not a problem that you 0:17:34.720 --> 0:17:37.520 carried your flat screen TV from here to the lobby 0:17:37.560 --> 0:17:39.399 to out on the street. No one had to worry 0:17:39.400 --> 0:17:42.760 about that. We do, you know, and so making that great. 0:17:43.240 --> 0:17:46.040 You know, the other thing that you talked about, uh 0:17:46.160 --> 0:17:49.439 and he is is um you know, why not be 0:17:49.560 --> 0:17:52.840 in the environment, you know, where the fish are, and 0:17:52.880 --> 0:17:57.040 the fact is where the fish are right now today. UM, 0:17:57.680 --> 0:18:00.960 as Meg said, is a phenomenal, phenomen amal environment, but 0:18:01.240 --> 0:18:04.720 it is an ocean. And the fact is is that 0:18:05.680 --> 0:18:10.240 we need to find a place where it's a premium experience. 0:18:10.560 --> 0:18:14.480 And we have seen this occur in other businesses UM 0:18:14.560 --> 0:18:18.359 and other related businesses. Meg made the note, which is HBO. 0:18:18.480 --> 0:18:22.080 When television was at the height of three TV over 0:18:22.119 --> 0:18:26.040 the air at its height, HBO came along and you know, 0:18:26.119 --> 0:18:30.520 launched a premium service, UM Spotify, Spotify and Apple Music. 0:18:30.560 --> 0:18:35.000 Six years ago, all music was available, thirty five million titles. 0:18:35.000 --> 0:18:36.600 All you had to do was type in the title 0:18:36.640 --> 0:18:39.360 and you could have any song that you wanted. Well, 0:18:39.400 --> 0:18:44.119 what did they did? They came along and they created playlists, recommendations, 0:18:44.400 --> 0:18:50.240 a set of features that suddenly made music curation convenient. 0:18:50.400 --> 0:18:53.040 And somebody did the workforce and by the end of 0:18:53.040 --> 0:18:57.360 this month, six years, two hundred million people paying ten 0:18:57.400 --> 0:19:00.560 dollars a month for the exact same music that they 0:19:00.560 --> 0:19:04.320 had before. We need to make information convenient, which is 0:19:04.400 --> 0:19:06.400 a very big part of what we're doing. We talk 0:19:06.480 --> 0:19:09.560 about the lighthouse all the time, but the sort of 0:19:09.600 --> 0:19:12.520 second part of what we're doing is taking what is 0:19:12.840 --> 0:19:18.880 right now ubiquitously available information around video and curating it 0:19:18.960 --> 0:19:22.199 in a quality way and now making that convenient for 0:19:22.240 --> 0:19:25.399 people every day, which is why we are a daily 0:19:25.440 --> 0:19:28.800 We are a Monday through Friday, eight in the morning 0:19:28.920 --> 0:19:31.720 till six o'clock or eight o'clock at night. That's our 0:19:31.840 --> 0:19:34.919 use case. That's not where television. I would ask in 0:19:34.960 --> 0:19:39.800 this room anybody in this room who has watched a 0:19:39.880 --> 0:19:43.919 our episode of television between eight o'clock in the morning 0:19:44.000 --> 0:19:46.439 and six o'clock at night, and you watched it on 0:19:46.480 --> 0:19:51.400 this device, could you please raise your hand now? And 0:19:51.400 --> 0:19:55.800 Andy has one? I found there's one. Okay, well one. 0:19:55.840 --> 0:19:59.639 I'm not sure your boss will be really happy with you. Um, 0:19:59.640 --> 0:20:02.600 but so that but you understand, that's not where we 0:20:02.760 --> 0:20:08.359 watch quality of media today. And because we don't have 0:20:08.480 --> 0:20:11.720 an hour, there's not a single person in this room 0:20:11.760 --> 0:20:14.480 that doesn't have five or seven or ten minutes in 0:20:14.520 --> 0:20:18.320 the course of your day, ten times a day. Particularly 0:20:18.320 --> 0:20:21.760 our target audience five year old target audience is on 0:20:21.800 --> 0:20:25.679 their mobile phone four to five hours a day. Interestingly, 0:20:25.720 --> 0:20:27.960 the average session length is about six and a half 0:20:28.000 --> 0:20:30.360 to seven minutes. So think about how many times they're 0:20:30.359 --> 0:20:34.280 picking up putting down their phone for relatively short bits 0:20:34.280 --> 0:20:36.440 of time. We want to fill some of that time. 0:20:37.119 --> 0:20:41.440 You know, you're getting backing from really the who's who 0:20:41.520 --> 0:20:46.480 of the Hollywood studios, the biggest companies. I'm curious is 0:20:46.520 --> 0:20:49.960 there going to be much coordination with them in terms 0:20:49.960 --> 0:20:52.560 of the kinds of intellectual property that we can see 0:20:52.600 --> 0:20:55.200 show up in Quimby, so that you're able to sort 0:20:55.240 --> 0:21:00.840 of leverage existing intellectual property that is on the NBC's, 0:21:01.000 --> 0:21:03.520 that is on the Disneys, that is on the Foxes. 0:21:03.800 --> 0:21:05.960 Or is this going to be just sort of a 0:21:06.040 --> 0:21:12.879 world of intellectual property unto itself it is what they 0:21:12.880 --> 0:21:16.840 are participating. Well, there are investors, there are partners, the 0:21:17.400 --> 0:21:20.240 as you I mean, just to put this in perspective, 0:21:20.320 --> 0:21:22.320 this is the first time in the history of our 0:21:22.440 --> 0:21:27.400 industry in this town in which everybody and I mean everybody, 0:21:27.440 --> 0:21:31.000 every single media company has come in and been an 0:21:31.000 --> 0:21:36.280 investor um and help start this business up and committed 0:21:36.320 --> 0:21:41.800 to make their talent and their i P available to 0:21:42.040 --> 0:21:45.680 help build out this platform and for them actually get 0:21:45.680 --> 0:21:49.000 paid great value for doing that. It's a two way 0:21:49.040 --> 0:21:51.760 street here in this which is we're not asking for 0:21:51.840 --> 0:21:54.240 charity from anybody. We're not asking for people to work 0:21:54.320 --> 0:21:57.399 for less or non competitive, in fact, just the opposite. 0:21:57.400 --> 0:22:00.760 Our deal is actually one of the most tracted deals 0:22:00.800 --> 0:22:04.199 that anybody could work in in television or film today. 0:22:04.440 --> 0:22:10.159 Describe what makes it attractive. So, um, we pay a 0:22:11.000 --> 0:22:16.040 of the cost of our shows plus a margin, so 0:22:16.080 --> 0:22:20.000 a d and if it's long form, up to six 0:22:20.040 --> 0:22:23.040 million dollars an hour. So that's the top of scripted 0:22:23.080 --> 0:22:26.520 television today. There are literally not ten shows out of 0:22:26.560 --> 0:22:29.000 five hundred and fifty that spend more than six million 0:22:29.040 --> 0:22:34.920 dollars an hour. Um, we have a license where that content, 0:22:35.400 --> 0:22:38.879 for in its short form and it's quick bites, is 0:22:38.920 --> 0:22:41.240 exclusive to us for seven years. At the end of 0:22:41.280 --> 0:22:46.760 seven years, it reverts to the producer. Then you own 0:22:46.840 --> 0:22:49.760 it at the end of seven years. So one, it's 0:22:49.760 --> 0:22:52.160 going back to a model that worked in the sixties 0:22:52.200 --> 0:22:56.119 and seventies and eighties, where producers, production companies and creatives 0:22:56.280 --> 0:22:59.119 owned their content, except we're give delivering it back to 0:22:59.200 --> 0:23:03.200 them you much shorter window. Second is is that after 0:23:03.240 --> 0:23:07.440 two years you can take that content in its quick 0:23:07.480 --> 0:23:11.400 bites and put it together in long form. Long form 0:23:11.440 --> 0:23:14.560 to us is defined by over twenty one minutes, you 0:23:14.680 --> 0:23:19.200 own that and can monetize that after two years. So 0:23:19.359 --> 0:23:21.439