WEBVTT - Patricof on Key Industry Trends (Audio)

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<v Speaker 1>You're listening to Taking Stock with Kathleen Hayes and Pim

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<v Speaker 1>Fox on Bloomberg Radio. Did anybody see Ben Her? Did

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<v Speaker 1>anybody see Star Trek Beyond Teenage Mutant, Ninja Turtles two

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<v Speaker 1>Out of the Shadows? Well they all fell short and

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<v Speaker 1>the studio's parent company, Viacom, of course, has been embroiled

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<v Speaker 1>in a boardroom drama for months, leading to the departure

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<v Speaker 1>of the chief executive, Philippe Doman. Here to tell us more,

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<v Speaker 1>Mark patrick Off. He is the co head of Technology, Technology,

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<v Speaker 1>Media and Telecom Group for Hulahan Loki. Mark patrick Off,

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<v Speaker 1>thanks for being with us, my pleasure. Thanks for happing me.

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<v Speaker 1>Have you seen any of those movies? No? No, I

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<v Speaker 1>think you have a lot of company with a lot

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<v Speaker 1>of friends. Yeah, exactly. Give us a little detail on

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<v Speaker 1>the studios right now. Who's running what and who is

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<v Speaker 1>leading the pack so we get an idea of who's

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<v Speaker 1>in a position of strength and who needs to up

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<v Speaker 1>their game. Look, I mean you want to get the Paramount.

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<v Speaker 1>So let's start with Paramount and Icom and think about

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<v Speaker 1>the fact that in a way this should be a

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<v Speaker 1>good new chapter for them because nobody's been running anything

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<v Speaker 1>there for a long long time. I mean there's division heads.

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<v Speaker 1>But I spoke to a friend about six months ago,

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<v Speaker 1>just kind of joking through. He'd worked at Vicount for

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<v Speaker 1>a long time, somebody everybody knows by name who left

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<v Speaker 1>about ten years ago and stays in close touch. And

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<v Speaker 1>he said, when he was there, if he asked something

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<v Speaker 1>the red Stone, what was the secession planned, you know,

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<v Speaker 1>he'd kind of looking and laugh, and I think, Um,

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<v Speaker 1>obviously he hopes and plans to live forever. And that

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<v Speaker 1>really impact of the company terribly. The leadership has been

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<v Speaker 1>you know, keeping hold there for a long, long while,

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<v Speaker 1>and it's troublesome. And certainly if you're like come Stareholder

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<v Speaker 1>and thinking about how do you maximize value, it's a

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<v Speaker 1>very tough time to point to Paramount and say this

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<v Speaker 1>is a great time to do something to monetize that investment.

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<v Speaker 1>The other studios, you don't have their own issues, but

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<v Speaker 1>clearly I'm always a big believer in Disney and feel

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<v Speaker 1>good about their direction. Um, I even like MGM and

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<v Speaker 1>what they've done. They still have, you know, a very

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<v Speaker 1>strong franchise in James Bond that has been under exploited

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<v Speaker 1>in lots of ways. People don't really realize that. But

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<v Speaker 1>not much has been done with James Bond outside the movies,

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<v Speaker 1>So I think that's you know, copies in a strong position,

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<v Speaker 1>and the other guys sort of know how to create

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<v Speaker 1>franchises in a way that clearly Paramount just doesn't at

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<v Speaker 1>least not Sorry, that's okay, So I guess then what

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<v Speaker 1>what happens next time? Looking at our Bloomberg news story today,

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<v Speaker 1>and it has a chart that shows what a turbulent

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<v Speaker 1>year this is for Viacom. This year is recovering from

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<v Speaker 1>a more than five year low in February. So despite

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<v Speaker 1>recent stumbles, there's still somewhat of an uptrend here. Why

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<v Speaker 1>the uptrend and can it continue? What has to happen? Well,

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<v Speaker 1>first of all, it can absolutely continue because I think

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<v Speaker 1>of where it started, and I think people knew that

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<v Speaker 1>at some point this year what happened in the last

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<v Speaker 1>few days was going to happen. It was inevitable. And

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<v Speaker 1>I think leadership is going to be stable. I think

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<v Speaker 1>dually is in a good position to keep a good

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<v Speaker 1>to keep the job, and I think they have good franchises.

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<v Speaker 1>MTV and some other assets have performed pretty well. As

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<v Speaker 1>you said from above expectations in the movie business, there's

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<v Speaker 1>no real there's no real you know, it's still an art,

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<v Speaker 1>so it takes a little bit of art along with

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<v Speaker 1>the science to make it work. And you know, I

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<v Speaker 1>think I think steady leadership in the direction and a

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<v Speaker 1>stronger point of view about what the long term plans

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<v Speaker 1>are will show directly in the results and performance of

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<v Speaker 1>the stock talk if you count a little bit about

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<v Speaker 1>what has been and I guess in an ongoing story,

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<v Speaker 1>UH Gawker Media UH sold to Univision after the forty

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<v Speaker 1>million dollar judgment against Gawker. Well, it was a I think,

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<v Speaker 1>by most people's estimation, a surprisingly good outcome last week.

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<v Speaker 1>I think that Univision has had an interest in the

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<v Speaker 1>business for a long time. Obviously with their recent filing

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<v Speaker 1>and what they did with the Onion and needing to

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<v Speaker 1>enhance that digital presences was a really good rational assets

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<v Speaker 1>I'm to acquire at the right price. I think they

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<v Speaker 1>got it a discount. The fact that there was real

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<v Speaker 1>competition certainly helped. I think the Nick Denton, through a

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<v Speaker 1>lot of the public interactions, you know, and private interactions

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<v Speaker 1>with Peterteo and on Panels, etcetera, has a cleared himself

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<v Speaker 1>pretty nicely. I mean think he's learned a lot. He

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<v Speaker 1>will have a great second chapter in his career. I

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<v Speaker 1>believe that. But the business was valued even at that number,

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<v Speaker 1>at a price where the buyer was gonna win. It's

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<v Speaker 1>a profitable company with really good performance across you know,

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<v Speaker 1>seven different brands. Obviously Gawker dot Com or not be

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<v Speaker 1>part of the business going forward, but key employees will

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<v Speaker 1>and all the content that's created will go into the

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<v Speaker 1>other brands. I think Isaac and the team at the

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<v Speaker 1>univisional will run it properly and be very happy they

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<v Speaker 1>bought it. Another big story this month's Time Warner requiring

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<v Speaker 1>a temper since stick in Hulu. You know, it's looking

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<v Speaker 1>at the future of TV. It's second quarter of results

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<v Speaker 1>proved there's still plenty of life in the traditional cable model,

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<v Speaker 1>but they to pun over legions of growing legions in

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<v Speaker 1>fact of court cutters who don't want to pay for

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<v Speaker 1>cable cable or satellite TV. You know, I think the

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<v Speaker 1>whose story is very interesting. I was talking to someone

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<v Speaker 1>the other day about the Time Warner move and thinking

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<v Speaker 1>is that is that a beginning of a step in

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<v Speaker 1>the direction of acquiring the whole business. And obviously there

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<v Speaker 1>are other partners at the table, and you know that

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<v Speaker 1>will have to be figured out. But brands really matter,

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<v Speaker 1>and I think Netflix brand is working and they spent

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<v Speaker 1>a lot of money in original programming. I don't think

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<v Speaker 1>you'll see who who do the same thing. They've already

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<v Speaker 1>you know, tried a bit and not had great success,

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<v Speaker 1>but they've done well with their brand in a way.

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<v Speaker 1>It's it's appointing that they think that the free product

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<v Speaker 1>and the way they integrate advertising worked really well. But

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<v Speaker 1>they're all trying to line up at the starting line

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<v Speaker 1>in a sense, in an equal equal way, so they

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<v Speaker 1>can compete with the cable operators and try to create

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<v Speaker 1>brands that connect directly the consumers. And for years obviously

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<v Speaker 1>HBO never had a direct relationship with their consumers. Now

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<v Speaker 1>they do through their apps. I mean, I think that

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<v Speaker 1>you know, it's going to be a race to create

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<v Speaker 1>the biggest best ran. It will be room from one

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<v Speaker 1>to forty years ago, you know, room for multiple networks.

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<v Speaker 1>Mark Patrick, aw thank you so very much. Co head

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<v Speaker 1>of Technology, Media and Telecom at Coolahan Loki. I'm Kathleen

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<v Speaker 1>Hayes along with Pim Fox, This is Bloomberg,