WEBVTT - Netflix vs Disney and Education in the Metaverse 0:00:02.480 --> 0:00:05.840 From the heart of where Innovation, money and power Collie 0:00:06.600 --> 0:00:11.160 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.200 --> 0:00:27.240 Emily Jay. I'm Emily Changes San Francisco and this is 0:00:27.280 --> 0:00:30.120 Bloomberg Technology. Coming up in the next hour, a glimpse 0:00:30.160 --> 0:00:33.920 into the future of entertainment. Netflix versus Disney, House of 0:00:34.000 --> 0:00:36.559 Dragons versus Lord of the Rings and all of It 0:00:36.800 --> 0:00:39.960 versus TikTok, Who wins and loses. I'll speak with former 0:00:40.000 --> 0:00:45.519 TikTok CEO and top former Disney executive Kevin Meyer. Plus 0:00:45.720 --> 0:00:48.519 Learning in the Metaverse Are at Tech series continues with 0:00:48.560 --> 0:00:51.680 a candid conversation about the future of virtual learning and 0:00:52.080 --> 0:00:54.480 whether it could tip the balance in favor of screen 0:00:54.520 --> 0:00:59.360 time and lawyers for Tharanos founder Elizabeth Holmes failed in 0:00:59.440 --> 0:01:02.280 along on attempt to get her fraud conviction thrown out. 0:01:02.560 --> 0:01:04.759 We're gonna hear from our own General roles in Black, 0:01:04.800 --> 0:01:08.640 who was in the courtroom for this decision. We will 0:01:08.680 --> 0:01:10.600 get to all of that in a moment. Stocks ending 0:01:10.720 --> 0:01:13.039 another week down on the back of a job's report 0:01:13.080 --> 0:01:15.680 that showed people are going back to work, but that 0:01:15.720 --> 0:01:18.280 means the FED will likely stay on a talkish course. 0:01:18.280 --> 0:01:20.880 Bloom Brig Shanali Bossik here to break it all down. 0:01:21.080 --> 0:01:23.759 Pay Shanali happy Friday. Happy Friday, Emily. If we take 0:01:23.760 --> 0:01:25.959 a look not so happy of a Friday for the 0:01:26.000 --> 0:01:29.000 stock market. You have the SMP down more than one percent, 0:01:29.280 --> 0:01:31.600 as you say, on the back of that expectation of 0:01:31.640 --> 0:01:34.080 a hawkish fed. But remember did try to scrape higher 0:01:34.080 --> 0:01:36.240 into the day, ending the day lower than you do. 0:01:36.280 --> 0:01:39.440 Have the NAZAC one hundred ending more than one point 0:01:39.480 --> 0:01:41.520 four percent lower on the day, so the steeper decline 0:01:41.520 --> 0:01:43.520 than you're seeing in the SMP five hundred. Both of 0:01:43.520 --> 0:01:46.200 these indicries are down on the week pretty significantly. And 0:01:46.200 --> 0:01:48.760 then you have the two year yield. Interestingly, you had 0:01:48.760 --> 0:01:51.800 that really rise very significantly into the week, getting well 0:01:51.840 --> 0:01:54.680 above that three fifty level, really pairing some of those 0:01:55.240 --> 0:01:57.400 rises that you saw on the two year yield. And 0:01:57.440 --> 0:01:59.400 remember those yields have a big impact on what you're 0:01:59.400 --> 0:02:02.000 going to expect on how you value a lot of 0:02:02.000 --> 0:02:05.360 these high growth companies moving forward. And bitcoin Bitcoin is 0:02:05.400 --> 0:02:10.000 back below twenty thousand your now at nine nine fifty nine. 0:02:10.040 --> 0:02:12.760 We are watching that very closely. It hasn't broken too 0:02:12.760 --> 0:02:16.079 far below these levels here, But again bitcoin trades into 0:02:16.120 --> 0:02:18.320 the weekend. If we flip up the board here, let's 0:02:18.360 --> 0:02:21.720 look at another asset lately, very correlated to bitcoin. That 0:02:21.800 --> 0:02:23.519 is that NAZAC one hundred. As I've been talking to 0:02:23.560 --> 0:02:26.240 you about the five day move here when I said significant, 0:02:26.280 --> 0:02:28.640 what I meant was a four percent drop this week. 0:02:28.720 --> 0:02:31.359 That's not the biggest drop that we've seen. But again, 0:02:31.720 --> 0:02:34.720 moving into September, which is a traditionally hard month for stocks, 0:02:34.919 --> 0:02:37.239 it'll be interesting to see how this trades into next week. 0:02:37.280 --> 0:02:39.280 We did see traders try to get back some of 0:02:39.280 --> 0:02:41.839 those gains, but again ending the day and the week 0:02:42.000 --> 0:02:44.359 much lower. But a couple of individual movers for you 0:02:44.440 --> 0:02:46.520 quickly here, Emily, I want to take a look here 0:02:46.560 --> 0:02:49.800 at Starbucks because remember they had that new CEO announcement. 0:02:50.320 --> 0:02:52.680 On the back of that, the stock has declined two 0:02:52.680 --> 0:02:54.840 point eight percent on the day to point nine percent. 0:02:55.120 --> 0:02:57.560 That is, of course deeper than we saw in the SMP. 0:02:57.919 --> 0:02:59.760 Lulu Lemon was your biggest s gainer here and that 0:02:59.800 --> 0:03:01.359 now as that one d that was down on the 0:03:01.400 --> 0:03:04.240 day six point seven percent higher on the back of 0:03:04.680 --> 0:03:09.440 encouraging earnings. People are buying leggings Broadcom. We have also 0:03:09.560 --> 0:03:12.840 one point seven percent higher on the day, shaking off 0:03:12.919 --> 0:03:15.240 a lot of those fears for those chip companies. Emily, 0:03:15.960 --> 0:03:17.760 all right, we're gonna dig into chips a little later 0:03:17.800 --> 0:03:22.000 in the show, Shinali Bostek, thank you for that update. Meantime, 0:03:22.160 --> 0:03:25.079 turning to streaming, Netflix is set to launch its AD 0:03:25.120 --> 0:03:28.959 supported service later this year, a significant premium add a 0:03:29.000 --> 0:03:32.000 significant premium compared to other streaming platforms. As far as 0:03:32.000 --> 0:03:34.720 we know, the streaming giant intending to roll out this 0:03:34.760 --> 0:03:37.480 plan ahead of its rival, Disney Plus, which will launch 0:03:37.560 --> 0:03:41.600 its own AD supported plan on December eight. Netflix hasn't 0:03:41.600 --> 0:03:44.640 announced the rate for its AD supported plan. Yeah, we're 0:03:44.640 --> 0:03:47.040 gonna break all of this down with Kevin Meyer, founder 0:03:47.080 --> 0:03:51.040 and co CEO of Candle Media, a former top longtime 0:03:51.080 --> 0:03:53.720 Disney executive of course as well. Kevin, it's so great 0:03:53.720 --> 0:03:56.640 to have you back here on the show. So curious 0:03:56.640 --> 0:03:58.400 what you think of this raft of streaming news we've 0:03:58.400 --> 0:04:01.839 gotten over the last several weeks, and especially this these 0:04:01.880 --> 0:04:04.200 ADS supported tiers. How much do you think these will 0:04:04.240 --> 0:04:09.600 really drive new subscribers to Netflix and Disney Plus. We're 0:04:09.600 --> 0:04:13.280 great to be here, Emily, Always enjoy being on your show. Um, Look, 0:04:13.320 --> 0:04:14.880 I think there's a lot of promise in these as 0:04:14.920 --> 0:04:18.160 supported tiers. I do think that there are very substantial 0:04:18.160 --> 0:04:20.880 tail ones in the marketplace, and marketers are looking to 0:04:20.920 --> 0:04:25.040 place their brand marketing dollars and high quality video environments. Uh, 0:04:25.160 --> 0:04:28.599 linear television has been the traditional place where they spend 0:04:28.600 --> 0:04:31.599 that money, and of course that has becoming that's becoming 0:04:31.640 --> 0:04:34.800 challenged from just an audience perspective as audiences moved from 0:04:34.800 --> 0:04:37.760 linear television and pay TV over to streaming. That's what 0:04:37.920 --> 0:04:41.000 streaming is where the audiences are. When I launched Disney Plus, 0:04:41.200 --> 0:04:44.560 you know, several years ago, we had marketers trying to 0:04:44.600 --> 0:04:47.320 bang down our doors to have advertising on Disney Plus. 0:04:47.360 --> 0:04:49.760 So I know there'll be an explosion of demand. I 0:04:49.800 --> 0:04:53.760 also know, having been involved with running Hulu for many years, 0:04:53.800 --> 0:04:57.240 that the ad supported version of Hulu was five dollars 0:04:57.320 --> 0:05:00.800 less expensive for consumers but brought in and roughly eight 0:05:00.800 --> 0:05:03.480 and a half dollars worth of monthly revenue just from 0:05:03.520 --> 0:05:05.400 the ad loads and the ad sales that they add. 0:05:05.600 --> 0:05:07.840 So I'm feeling pretty bullish about it. I do think 0:05:07.880 --> 0:05:11.280 that consumers do tend to like to pay less, even 0:05:11.279 --> 0:05:13.800 if to put up with a small ad load. I 0:05:13.880 --> 0:05:16.200 think that both Netflix and Disney will be quite successful. 0:05:16.279 --> 0:05:18.320 If you don't know how Netflix will yet price their 0:05:18.520 --> 0:05:21.640 their their service with ads. Disney surprised me a little 0:05:21.640 --> 0:05:23.680 bit with keeping the same price as it is today 0:05:24.040 --> 0:05:27.440 add free for ads and moving the ad free price 0:05:27.640 --> 0:05:29.800 up three dollars or thirty eight percent. I think that's 0:05:29.839 --> 0:05:32.320 a pretty aggressive price move. It will be very interesting 0:05:32.320 --> 0:05:35.040 to see how much price sensitivity is in the Disney 0:05:35.040 --> 0:05:37.760 plus subscriber ranks and see how that how that evolves. 0:05:38.480 --> 0:05:41.040 And look, you've always said Netflix and Disney can both 0:05:41.279 --> 0:05:44.720 and will both coexist. But over the longer term, given 0:05:44.720 --> 0:05:48.400 the challenges that we we've known them to face, especially 0:05:48.400 --> 0:05:51.279 over the last six months, does Netflix or Disney have 0:05:51.400 --> 0:05:56.719 the edge? They're very different services. Um Disney is configured 0:05:56.920 --> 0:05:59.839 with the core brands of the Wall Disney Company, including Inport, Disney, 0:05:59.839 --> 0:06:03.800 It's Help and Pixar, Marvels, Star Wars, National Geographic, and 0:06:03.839 --> 0:06:07.000 it's meant is designed to superserve those fans, the fans 0:06:07.000 --> 0:06:09.799 of those brands. Now they have expanded under Bob Shapeck, 0:06:09.839 --> 0:06:12.960 They've expanded the programming somewhat to have a little bit 0:06:12.960 --> 0:06:16.280 more general entertainment adult programming, but still the essence of 0:06:16.360 --> 0:06:19.640 Disney Plus is for fans of those brands, not only families, 0:06:19.800 --> 0:06:22.320 because of course, if you have kids, you're more likely 0:06:22.360 --> 0:06:24.080 to be a fan of one of those brands, but 0:06:24.160 --> 0:06:26.880 also for adults and single people and couples, many of 0:06:26.880 --> 0:06:29.280 whom were fans of those brands as well. So that's 0:06:29.279 --> 0:06:31.800 the focus of Disney Plus. And if you are a 0:06:31.800 --> 0:06:34.159 fan of one of those brands, you kind of have 0:06:34.279 --> 0:06:37.520 to have Disney Plus to satisfy, uh, spatisfy that affinity 0:06:37.600 --> 0:06:40.360 that you have. You can't get that programming elsewhere. So 0:06:40.400 --> 0:06:41.960 I think if you're you know, and the Netflix, of 0:06:42.040 --> 0:06:45.159 course is much broader based too, serves uh the entire population. 0:06:45.200 --> 0:06:49.240 It's very much a general entertainment brand and service, so 0:06:49.279 --> 0:06:51.360 I think that has the broader footprint, and I think 0:06:51.400 --> 0:06:53.520 that Disney Plus is typically going to be an add 0:06:53.520 --> 0:06:56.680 on to Netflix. I think both are doing great. I 0:06:56.680 --> 0:06:58.839 think both will be you know, quote unquote winners in 0:06:58.839 --> 0:07:02.640 the global battle for um for having a successful rollout, 0:07:02.680 --> 0:07:04.719 and they already they already are, So I think both 0:07:04.760 --> 0:07:06.920 are going to go exist. And I don't know that 0:07:07.160 --> 0:07:09.160 either open care one is bigger than the other. They 0:07:09.200 --> 0:07:11.120 just want to service their consumers as best they can. 0:07:11.960 --> 0:07:15.800 Streaming of course, has surpassed cable for the first time. 0:07:16.160 --> 0:07:18.600 You know, with HBO's House of Dragons has been a 0:07:18.680 --> 0:07:22.080 huge hit so far. Who else wins and who else 0:07:22.160 --> 0:07:25.240 loses in this new future, Well, it's hard to say. 0:07:25.320 --> 0:07:27.160 I mean, those are the best programming. I guess it's 0:07:27.160 --> 0:07:30.160 an obvious thing to say that people subscribe to these 0:07:30.160 --> 0:07:32.840 services to watch the programs that they love. I think, 0:07:33.120 --> 0:07:35.440 you know, Netflix has already been established itself as a 0:07:35.440 --> 0:07:37.600 big winner. I know there's turbulence in the stock price, 0:07:37.600 --> 0:07:39.720 and they've hit some They've stalled out a little bit 0:07:39.760 --> 0:07:43.080 on growth of subscribers, but I think the add three 0:07:43.120 --> 0:07:45.000 tier at a lower price will actually help them there. 0:07:45.160 --> 0:07:48.480 I think they should see some additional growth restarting with 0:07:48.480 --> 0:07:51.640 with that offering. Um. Look, I think Disney Plus and 0:07:51.680 --> 0:07:55.840 Netflix are in arguably winners. I think that HBO Max 0:07:55.960 --> 0:07:58.200 with the programming that it has in its vault, and 0:07:58.280 --> 0:08:02.280 the and the ongoing production of HDO and discovery programming 0:08:02.360 --> 0:08:04.520 and even seeing enders, I expect to probably be in 0:08:04.560 --> 0:08:07.160 that in that service. I think that's going to be 0:08:07.200 --> 0:08:09.320 a global winner. I think I've been a little bit 0:08:09.320 --> 0:08:11.640 positively surprised by Paramount Plus. To tell you, the truth, 0:08:11.800 --> 0:08:13.400 I didn't have a lot of pok for it to 0:08:13.440 --> 0:08:15.840 be as successful as it has been. So I think 0:08:15.840 --> 0:08:18.920 that's that's they're they're they're making a big play. Then 0:08:18.960 --> 0:08:20.920 get the Apple and you have Amazon. They have a 0:08:20.920 --> 0:08:22.440 lot of money, a lot of cash, and they have 0:08:23.320 --> 0:08:25.760 other strategic reasons to be in the streaming space other 0:08:25.800 --> 0:08:29.160 than the direct economics of those streaming uh, the streaming 0:08:29.440 --> 0:08:32.560 services themselves. So I think they're pretty well committed. So 0:08:32.559 --> 0:08:34.040 I think you have a handfull, you know, four or 0:08:34.040 --> 0:08:37.559 five global winners, And of course the niches will continue 0:08:37.600 --> 0:08:40.600 to to to exist and then be profitable but smaller 0:08:40.640 --> 0:08:43.000 and those will be um, those will you know, won't 0:08:43.000 --> 0:08:45.079 be competing with the big guys, but the big guys 0:08:45.120 --> 0:08:48.079 I think there will be several of them. Ultimately. I'm 0:08:48.080 --> 0:08:51.040 seeing ads for Amazon's Lord of the Rings everywhere I go, 0:08:51.320 --> 0:08:55.040 everywhere I click. Um. The reviews on Rotten Tomatoes, at 0:08:55.080 --> 0:08:58.640 least if you look at the audience reviews not so positive. 0:08:59.600 --> 0:09:02.400 So are kind of rotten on Rotten Tomatoes critics have 0:09:02.520 --> 0:09:06.920 been more positive. What are you making this look? I 0:09:06.960 --> 0:09:08.640 haven't had a chance yet to watch it. I have 0:09:08.679 --> 0:09:11.240 seen the same same reviews that you've seen I would 0:09:11.280 --> 0:09:13.319 pay a lot more attention to the customer reviews than 0:09:13.320 --> 0:09:15.599 to the critic reviews. That's where the rubber reviews the 0:09:15.679 --> 0:09:18.559 road actually. But look, there's a lot of pent up 0:09:18.840 --> 0:09:22.640 excitement for this, for this title, I expected to do well. Um, 0:09:22.640 --> 0:09:25.520 it doesn't have to be critically reviewed to be successful 0:09:25.559 --> 0:09:28.280 or and rotten tomatoes only go so far by the way. 0:09:28.520 --> 0:09:31.240 I just I expected to be to work. I expected 0:09:31.320 --> 0:09:36.040 to to you know, to help Amazon continue to gather 0:09:36.200 --> 0:09:40.280 and keep Prime subscribers. And remember, people subscribe to Prime 0:09:40.360 --> 0:09:42.600 not just for video, but primarily for delivery of their 0:09:42.679 --> 0:09:44.520 of their goods and to and to conclude e commerce 0:09:44.520 --> 0:09:47.840 transactions on on on that platform. So I do think 0:09:47.880 --> 0:09:51.160 that it's not a must win. It doesn't have to 0:09:51.200 --> 0:09:52.760 be one of the top shows of the year for 0:09:52.840 --> 0:09:55.440 it to be to prove successful and to leverage more 0:09:55.559 --> 0:09:57.839 e commerce activity on Amazon, this is the old purpose 0:09:57.880 --> 0:10:00.960 of it, I think. So, look, you know, you've also 0:10:01.000 --> 0:10:03.720 talked about consolidation, but uh, you know, it seems like 0:10:03.760 --> 0:10:06.080 you're pretty optimistic about a lot of these services. If 0:10:06.080 --> 0:10:10.079 consolidation happens, who who gets consolidated? It's always hard to 0:10:10.120 --> 0:10:12.120 call that, Emily. Um, you know, if I knew that, 0:10:12.240 --> 0:10:14.120 I don't have a crystal ball there. But these are 0:10:14.120 --> 0:10:16.160 big brands, I guess the ones that are, you know, 0:10:16.200 --> 0:10:19.480 somewhat smaller could be consolidated. No one's consolidating Apple. No 0:10:19.480 --> 0:10:22.240 one's consolidating Amazon. That's obvious. And then you look at 0:10:22.240 --> 0:10:24.800 the media companies and which one of those might be consolidated. 0:10:25.040 --> 0:10:28.880 There's always rumors about you know, UM Peacock and HBO 0:10:28.920 --> 0:10:31.120 Max coming to the other possibly, or the parent companies 0:10:31.240 --> 0:10:36.040 merging Paramount and Paramount Global. The parent company is often 0:10:36.040 --> 0:10:38.959 discussed as being in play, and Stars is out there too, 0:10:39.000 --> 0:10:41.480 by the way, which is being separated from lions Gate. 0:10:41.559 --> 0:10:43.600 That that will be brought with someone ultimately, I think 0:10:43.960 --> 0:10:47.040 so hard to say. Obviously, the bigger guys, if there 0:10:47.120 --> 0:10:49.679 is consolidation, the bigger guys swallow the smaller guys. That's 0:10:49.720 --> 0:10:52.160 the way the physics of it, and that that will 0:10:52.200 --> 0:10:54.320 take place here too. So you might look at you 0:10:54.360 --> 0:10:56.800 might look at some of the digital giants to to 0:10:56.880 --> 0:10:59.080 buy some of the smaller media companies, or you might 0:10:59.120 --> 0:11:01.880 look for a merger between media companies. But I don't 0:11:01.960 --> 0:11:04.080 I think that that will happen ultimately, and not not 0:11:04.120 --> 0:11:07.000 in the two distant future. Now, Dan Lobe a few 0:11:07.040 --> 0:11:12.960 weeks ago urging Disney to spin off ESPN was otherwise 0:11:13.080 --> 0:11:17.440 positive of Bob Chpeck. Of course, you worked at Disney 0:11:17.440 --> 0:11:22.960 for so many years and oversaw ESPN. Was this ever 0:11:23.320 --> 0:11:28.199 discussed and in your view is this ever going to happen? Well, 0:11:28.200 --> 0:11:30.360 it's it's a very interesting question. From time to time 0:11:30.400 --> 0:11:33.280 we discussed, you know, what what should be the deployment 0:11:33.320 --> 0:11:34.920 of all of the assets of the Walt Disney Company. 0:11:34.960 --> 0:11:38.800 We had are very very um, a very high quality boarder, 0:11:39.120 --> 0:11:41.000 and of course one of the one of the things 0:11:41.040 --> 0:11:44.120 that board always asks of management is to review the 0:11:44.160 --> 0:11:47.280 asset portfolio that you have and understand whether or not 0:11:47.520 --> 0:11:49.480 there should be some additions to the assets or some 0:11:49.559 --> 0:11:52.680 subtractions should you sell something. So it is discussed, you know, 0:11:52.720 --> 0:11:54.240 at various times over the years that I was there, 0:11:54.280 --> 0:11:55.960 was there for a very long time, so I had 0:11:56.000 --> 0:11:59.160 to discussed several times. Bob is a very smart guy. 0:11:59.280 --> 0:12:01.400 I respect him all. I think he's a great uh. 0:12:01.400 --> 0:12:04.280 He's doing a very well good job as CEO. He'll 0:12:04.320 --> 0:12:06.680 make the right call. My own observation would be that 0:12:07.000 --> 0:12:09.680 ESPN was a very strategic asset for the Walt Disney 0:12:09.679 --> 0:12:12.520 Company when they are when PayTV was growing, and when 0:12:12.760 --> 0:12:15.480 ESPN was such an important part of the bundle of 0:12:15.600 --> 0:12:18.280 channels that Disney had, including ABC and the Disney Channel 0:12:18.280 --> 0:12:20.320 and X and all the different all the different channels 0:12:20.320 --> 0:12:22.480 and Nation National, Geographic, all the channels that they have. 0:12:22.720 --> 0:12:26.320 As the pay TV universe continues, it's precipitous decline. I 0:12:26.360 --> 0:12:28.680 think that the channel business and also the audiences for 0:12:29.080 --> 0:12:31.760 among the you know, for the programming on linear channels, 0:12:31.920 --> 0:12:34.960 is decreasing quite substantially. The channel business, not only for 0:12:35.000 --> 0:12:37.120 Disney but for all these media companies, is declining in 0:12:37.360 --> 0:12:41.880 strategic importance. So therefore the importance of ESPN to be 0:12:41.960 --> 0:12:46.319 a bulwark in that channel distribution modality is becoming less also, 0:12:46.559 --> 0:12:49.640 So I think that the the reason the strategic comparative 0:12:49.880 --> 0:12:51.920 of having a sports service like ESPN is less than 0:12:51.960 --> 0:12:54.400 it used to be. So I think there's more degrees 0:12:54.400 --> 0:12:57.040 of freedom, operating flexibility, if you will, for the for 0:12:57.120 --> 0:12:59.200 Bob and the management team there to make the right decision. 0:12:59.240 --> 0:13:01.960 So I wouldn't be shocked to see it um spun 0:13:02.040 --> 0:13:04.280 off from Disney, but I wouldn't be shocked to see 0:13:04.280 --> 0:13:08.840 a state or two. Yeah, okay, okay, Well, next week 0:13:09.160 --> 0:13:11.679 kicks off NFL season, and you know, there's been a 0:13:11.720 --> 0:13:14.640 lot of talk about whether these streaming services need sports 0:13:14.679 --> 0:13:16.240 to take them to the next level. Is that going 0:13:16.280 --> 0:13:19.320 to drive the next chapter, the next era of subscriber growth. 0:13:19.679 --> 0:13:22.959 Maybe it's not just sports, maybe it's also news. What 0:13:23.080 --> 0:13:25.800 do you think on the tournament of a big sports 0:13:25.800 --> 0:13:28.280 streaming service outside the US called the Zone D A 0:13:28.440 --> 0:13:31.760 c N and we stream the big most important soccer 0:13:31.840 --> 0:13:36.280 leagues in Italy and Spain and in Germany, and we 0:13:36.360 --> 0:13:38.760 have and across the tontinent of Europe, and in Japan 0:13:38.880 --> 0:13:40.800 we also have a big, big presence, and in the 0:13:40.920 --> 0:13:43.880 US with boxing. I think that the ultimate, the ultimate 0:13:44.200 --> 0:13:46.360 way that sports will be delivered to consumers will be 0:13:46.760 --> 0:13:48.840 over the top. It will be delivered via the internet, 0:13:48.960 --> 0:13:52.439 on apps, on televisions, and on mobile devices, just like 0:13:52.880 --> 0:13:58.280 entertainment programming is. I don't think that entertainment services need 0:13:58.400 --> 0:14:00.319 to have sports, nor do I think that sport needs 0:14:00.360 --> 0:14:03.480 of entertainment. I think consumers are tired of paying a 0:14:03.600 --> 0:14:06.559 lot for sports when they're just interested in entertainment. That's 0:14:06.559 --> 0:14:08.800 what's bringing the pay TV bundle down. And I think 0:14:08.840 --> 0:14:10.840 that people just just want to watch for I want 0:14:10.840 --> 0:14:13.679 to pay for entertainment necessarily, so I think the disaggregation 0:14:13.840 --> 0:14:17.280 of different programming types into and making leving consumers make 0:14:17.320 --> 0:14:18.839 a choice of what they want to pay for. I 0:14:18.920 --> 0:14:21.240 think that is the promise of the Internet. That's why 0:14:21.320 --> 0:14:24.000 streaming services have have done so well. And I think 0:14:24.040 --> 0:14:26.360 you'll see that here sports services will be paid for 0:14:26.840 --> 0:14:30.120 separately and package separately entertainment in the future. I think 0:14:31.360 --> 0:14:33.560 would love an update on what you're doing at Candle Media. 0:14:33.640 --> 0:14:36.720 Of course you bought Hello Sunshine. I want to know 0:14:36.840 --> 0:14:40.280 how that's going and where your priorities are in this 0:14:40.480 --> 0:14:44.640 new kind of constantly evolving world. Well, Candle Meet is 0:14:44.760 --> 0:14:48.280 going great. They have a fantastic partner in Blackstone Private 0:14:48.320 --> 0:14:51.480 Equity Group. They've been unbelievable supporters of the Candle We 0:14:51.600 --> 0:14:54.320 have bought about nine or ten companies already. The biggest 0:14:54.400 --> 0:14:57.920 ones were Hello Sunshine and the company called Moonbug. Pella 0:14:58.000 --> 0:15:00.720 Sunshine is doing great, Reese is Restura, this spoon is 0:15:00.720 --> 0:15:03.720 still highly involved with a great management team. There. We're 0:15:03.760 --> 0:15:06.760 doing We're doing very well uh at Hello Sunshine, but 0:15:06.880 --> 0:15:09.400 also a Moonbug where if you're a parent with small kids, 0:15:09.400 --> 0:15:12.560 you would under you would know of our great intellectual 0:15:12.560 --> 0:15:16.360 property and characters and Mukoka Millon the most popular streaming 0:15:17.400 --> 0:15:19.800 the second most popular show on Netflix last year in 0:15:19.880 --> 0:15:23.119 the second biggest YouTube channel in the world. Slippy Little 0:15:23.160 --> 0:15:24.920 Baby Bomb a whole bunch of different ip that we 0:15:24.960 --> 0:15:27.960 haven't move like. That's doing very well. We have bought 0:15:28.040 --> 0:15:31.000 a company called Exile, which does programming in Latin America 0:15:31.160 --> 0:15:33.760 under the stewardship of Isaac Lee, who was the former 0:15:34.080 --> 0:15:37.240 head of content for both Televisa and Univision. He's a 0:15:37.280 --> 0:15:39.920 great Latin American programmer. And that's a multi platform business 0:15:39.960 --> 0:15:43.120 that we acquired. Also Required Attention, which does social media 0:15:43.160 --> 0:15:46.080 storytelling on TikTok and Instagram and elsewhere. That will help 0:15:46.200 --> 0:15:48.720 all of our companies do. All of our brands do 0:15:49.000 --> 0:15:50.720 much better in the marketplace when they need to have 0:15:50.840 --> 0:15:53.800 a social media footprint. So we love the fly wheel 0:15:53.840 --> 0:15:57.080 that we've created in traditional television content, social media storytelling 0:15:57.160 --> 0:15:59.920 and then related commerce opportunities. And we we're doing We're 0:16:00.360 --> 0:16:04.160 We're very polish on our future. I've got a three 0:16:04.200 --> 0:16:06.840 year old Kevin Coco melon is huge in our house. 0:16:07.000 --> 0:16:08.440 I don't know whether to say thank you or no 0:16:08.560 --> 0:16:14.040 thank you for that, but you watch Kevin Meyer, candle 0:16:14.120 --> 0:16:16.840 founder and co CEO. Always good to have you, Kevin, 0:16:17.080 --> 0:16:28.760 have a great weekend. Thank you for stopping by. Twitter 0:16:28.960 --> 0:16:31.160 is asking a judge to order Elon Musk to turn 0:16:31.240 --> 0:16:33.720 over all of his text messages from the first six months. 0:16:35.040 --> 0:16:38.160 The company is saying the billionaire isn't cooperating and exchanging 0:16:38.200 --> 0:16:40.720 evidence ahead of the trial in this fight over that 0:16:40.880 --> 0:16:44.080 forty four billion dollar deal bloom Brooks. Jeff Phely joins 0:16:44.160 --> 0:16:48.960 us from Delaware More Late Friday News. Jeff, is it 0:16:49.080 --> 0:16:52.680 usual to be asking for six months of test text messages? 0:16:52.720 --> 0:16:55.360 I mean, should we have expected this given Elon Musk 0:16:55.520 --> 0:16:58.920 is witness number one? Yeah, I don't think it's an 0:16:59.000 --> 0:17:02.760 unusual request. I've seen it in other cases, and I 0:17:02.880 --> 0:17:06.320 suspect Mr Musk has a lot of business by text, 0:17:06.720 --> 0:17:10.760 so you know, so it's easily actually going to hand 0:17:10.800 --> 0:17:13.479 them over. What's the likelihood Twitter is going to get these? 0:17:14.320 --> 0:17:16.480 I think the judge will ask him to hand over, 0:17:16.920 --> 0:17:19.040 you know, maybe not all of them, but some of them, 0:17:19.240 --> 0:17:21.639 if you know, have to go through and have somebody 0:17:21.800 --> 0:17:25.320 look at them to see if they're relevant to the case. Maybe, 0:17:25.440 --> 0:17:27.880 but he's not going to be able to keep texts 0:17:28.160 --> 0:17:32.520 completely out. How does one do this? I mean, I 0:17:32.680 --> 0:17:35.760 mean there are hundreds thousands of texts, and there could 0:17:35.760 --> 0:17:38.960 be a lot of different kinds of information in those times, 0:17:39.920 --> 0:17:44.080 those things that might be interesting. True, But he also 0:17:44.200 --> 0:17:48.280 has he liked many folks. He also has multiple phones 0:17:48.720 --> 0:17:52.280 and wipes his phone periodically, so you know, it gets 0:17:52.400 --> 0:17:54.800 kind of touchy, you know, trying to figure it out. 0:17:55.920 --> 0:18:00.040 I suspect that since he filed the notice that he 0:18:00.160 --> 0:18:02.600 was gonna walk away from the deal though, that he's 0:18:02.640 --> 0:18:06.240 been saving his texts because judges don't like here, and 0:18:06.320 --> 0:18:10.840 that that that kind of material has been deleted. Okay, okay. Now, 0:18:10.880 --> 0:18:13.680 Twitter says he hasn't been cooperating in the discovery process. 0:18:14.000 --> 0:18:17.800 What does that mean? Well, and the discovery is the 0:18:17.840 --> 0:18:21.680 pre trial information exchange that folks do so you can 0:18:21.960 --> 0:18:23.960 you know, get the material to put your case together. 0:18:24.520 --> 0:18:27.920 Twitter claims that he has not been cooperating in good faith, 0:18:28.000 --> 0:18:30.919 acting in good faith, dragging his feet. In other words, 0:18:31.440 --> 0:18:33.960 that the most people say, oh no, it's not us, 0:18:34.040 --> 0:18:36.639 has been dragging our feet. Twitter has been dragging their 0:18:36.680 --> 0:18:39.480 feet and trying to hide witnesses about this whole box 0:18:39.600 --> 0:18:44.200 issue again. These kind of fights are very common in 0:18:44.280 --> 0:18:48.040 the run up to these you know merger cases, all right, 0:18:48.080 --> 0:18:49.960 and we are still, of course waiting to see if 0:18:50.040 --> 0:18:53.440 this indeed will stay in October or if it gets 0:18:53.480 --> 0:18:55.920 pushed back to November December, as Muski is asking for 0:18:56.240 --> 0:19:08.720 Jeff Feey in Delaware, thank you chip Stocks and focus. 0:19:08.760 --> 0:19:12.760 After the US government imposed new license requirements on semiconductor 0:19:12.920 --> 0:19:16.199 exports to China. Bloomberg's Ian King, of course, covers all 0:19:16.359 --> 0:19:19.560 things chips Ian. What does this mean? Yeah, I mean 0:19:19.640 --> 0:19:22.080 this is a big deal first of all, for in 0:19:22.200 --> 0:19:25.320 video obviously, for hundred million dollars in a quarter for 0:19:25.440 --> 0:19:27.400 in video that's and the ads up over a year. 0:19:27.920 --> 0:19:30.320 On the flip side of that, for China, this is 0:19:30.720 --> 0:19:34.560 a key piece of technology. These are key AI accelerators 0:19:34.640 --> 0:19:37.960 that really helped train these systems. So if you're in 0:19:38.040 --> 0:19:39.959 a hyper scale you really need this if you want 0:19:40.000 --> 0:19:42.280 to stay up with what Google, what a ws are doing. 0:19:42.720 --> 0:19:44.600 And that's really you know, could be a major blow 0:19:44.680 --> 0:19:49.480 to some of these Chinese customers, you know, chip companies 0:19:49.880 --> 0:19:52.359 reporting it's been a lot of doom and gloom, but 0:19:52.560 --> 0:19:57.399 Broadcom seems to be more positive. Why is that? Yeah, No, 0:19:57.560 --> 0:20:00.119 I mean, they spent an hour on the phone ys 0:20:00.160 --> 0:20:02.399 today with analyst saying are you shut you know, answering 0:20:02.440 --> 0:20:04.840 the same question, which was are you sure? Are you sure? 0:20:05.320 --> 0:20:08.520 And you know, it's really a division between the PC 0:20:08.760 --> 0:20:11.800 related companies where we've seen, you know, laptop demand has 0:20:11.840 --> 0:20:15.080 just gone away after the pandemic, and you know, lots 0:20:15.119 --> 0:20:18.439 of companies like Intel like you know, a lot weaker 0:20:18.560 --> 0:20:22.359 outlook on the flip side. Don't comment saying, look, infrastructure, 0:20:22.440 --> 0:20:25.919 these giant data centers people are still building. Companies are 0:20:25.960 --> 0:20:29.080 still investing in their infrastructure and that's why our numbers 0:20:29.119 --> 0:20:32.640 are good. Broadcom is, of course a big Apple supplier. 0:20:33.200 --> 0:20:36.199 What is what they had to say indicate about iPhone 0:20:36.200 --> 0:20:38.080 de man, especially with the big Apple event coming up 0:20:38.119 --> 0:20:41.080 next week. Yeah, no, you're you're absolutely right. That got 0:20:41.160 --> 0:20:43.360