1 00:00:00,600 --> 00:00:02,960 Speaker 1: This is the Bloomberg Business of Sports show, but we 2 00:00:03,000 --> 00:00:06,200 Speaker 1: explore the big money issues in the world of sports 3 00:00:06,200 --> 00:00:09,640 Speaker 1: at Michael Barr. It's a special edition of the podcast. 4 00:00:09,680 --> 00:00:14,319 Speaker 1: Today we're talking cars and racing with Motor Trend. It's 5 00:00:14,400 --> 00:00:17,439 Speaker 1: an institution in the older world with a seventy five 6 00:00:17,520 --> 00:00:21,280 Speaker 1: year history and it's looking to grow. It recently announced 7 00:00:21,320 --> 00:00:26,200 Speaker 1: a free ad supported TV channel, Motor Trend Fast TV, 8 00:00:26,760 --> 00:00:29,840 Speaker 1: as part of a plan to expand its digital footprint. 9 00:00:29,880 --> 00:00:34,160 Speaker 1: Alex Wellen is global President and general manager a Motor 10 00:00:34,200 --> 00:00:37,639 Speaker 1: Trend Group. He sat down to talk with our colleague 11 00:00:37,800 --> 00:00:40,960 Speaker 1: Kredi Gupta about what he's doing to move the brand 12 00:00:41,080 --> 00:00:44,360 Speaker 1: into the future. Let's listen in on their conversation. So, 13 00:00:44,600 --> 00:00:49,360 Speaker 1: Motor Trend Group is a brand that includes about fifty 14 00:00:49,360 --> 00:00:52,680 Speaker 1: other brands hot Rod, Motor Trend, Super Street, and on 15 00:00:52,720 --> 00:00:56,480 Speaker 1: and on. But we are the largest global media organization 16 00:00:56,520 --> 00:00:59,600 Speaker 1: in the world for automotives. So we have a TV network, 17 00:01:00,080 --> 00:01:02,280 Speaker 1: sides that we have direct consumer we're on these free 18 00:01:02,280 --> 00:01:05,880 Speaker 1: ad supported services. We have a Motor Trend Studio which 19 00:01:05,880 --> 00:01:08,840 Speaker 1: creates you know, thousands of hours of content. We have 20 00:01:08,880 --> 00:01:11,360 Speaker 1: our own and operated websites. We do live events, we 21 00:01:11,360 --> 00:01:13,200 Speaker 1: have a social platform, so we do a lot of 22 00:01:13,200 --> 00:01:16,080 Speaker 1: things all across the globe and we reach about one 23 00:01:16,160 --> 00:01:18,760 Speaker 1: hundred and fifty to two hundred million people every single year. 24 00:01:18,840 --> 00:01:21,480 Speaker 1: It's kind of interesting because you're you're the amalgamation of 25 00:01:21,560 --> 00:01:25,840 Speaker 1: basically everything that a general consumer needs to know about cars, 26 00:01:25,880 --> 00:01:27,840 Speaker 1: and you don't have to be a carficionado to use 27 00:01:27,840 --> 00:01:32,240 Speaker 1: your platform necessarily. It's almost like democratizing the car world 28 00:01:32,560 --> 00:01:35,039 Speaker 1: for buyers, but also, you know, for the car geeks 29 00:01:35,080 --> 00:01:38,000 Speaker 1: who want to know the nitty gritty of gears and 30 00:01:38,080 --> 00:01:39,880 Speaker 1: you know, whatever it is else it is that car 31 00:01:40,240 --> 00:01:43,360 Speaker 1: efficionados do. But I want to start with your media 32 00:01:43,400 --> 00:01:48,560 Speaker 1: business specifically, because you're kind of entering this new media 33 00:01:49,160 --> 00:01:52,240 Speaker 1: arena at a time when media is kind of suffering. 34 00:01:52,400 --> 00:01:56,440 Speaker 1: Perhaps car appetite is a little under the weather, for 35 00:01:56,520 --> 00:01:58,920 Speaker 1: lack of a better term, just given the inflationary environment 36 00:01:59,440 --> 00:02:01,320 Speaker 1: that we're in as well. I want to start with 37 00:02:01,360 --> 00:02:04,760 Speaker 1: your business specifically. You're coming out with some pretty crucial announcements. 38 00:02:05,040 --> 00:02:09,919 Speaker 1: We're announcing forty nine categories of different types of cars 39 00:02:09,919 --> 00:02:12,519 Speaker 1: in our rankings. So we've now gone in and Motor 40 00:02:12,560 --> 00:02:14,440 Speaker 1: Tren has been around for seventy five years and we 41 00:02:14,560 --> 00:02:17,480 Speaker 1: basically have all the expertise to look at cars from 42 00:02:17,520 --> 00:02:20,280 Speaker 1: every angle. We're actually in the cars, testing the cars, 43 00:02:20,320 --> 00:02:24,960 Speaker 1: checking for comfort and reliability and distance and efficiency. And 44 00:02:25,040 --> 00:02:27,880 Speaker 1: so we're looking at forty nine different categories and today 45 00:02:27,919 --> 00:02:30,240 Speaker 1: we're announcing the number one, number two, number three, and 46 00:02:30,280 --> 00:02:32,600 Speaker 1: so forth for each of those categories. So for it's 47 00:02:32,600 --> 00:02:35,160 Speaker 1: a luxury car or an ev car, we should talk 48 00:02:35,160 --> 00:02:39,320 Speaker 1: about evs because everyone's finding that confusing. But it's a 49 00:02:39,560 --> 00:02:43,720 Speaker 1: confusing and important time to have a reliable voice, and 50 00:02:43,760 --> 00:02:46,520 Speaker 1: we are helping demystify that. We've always done that, but 51 00:02:46,600 --> 00:02:48,440 Speaker 1: now we're really stepping out in a big way around 52 00:02:48,440 --> 00:02:50,560 Speaker 1: these different categories and especial as the US store, you 53 00:02:50,600 --> 00:02:53,240 Speaker 1: guys are going international, that's right. So in addition to 54 00:02:53,800 --> 00:02:56,600 Speaker 1: not only ranking every single car and making sure people 55 00:02:56,800 --> 00:02:58,640 Speaker 1: know what to find and give them the tools to 56 00:02:58,680 --> 00:03:02,200 Speaker 1: do that, we're also spanning our library of content, which 57 00:03:02,280 --> 00:03:05,359 Speaker 1: is about eight thousand episodes. So all of the programming, 58 00:03:05,360 --> 00:03:07,600 Speaker 1: all the entertainment around a motor trend is now going 59 00:03:07,600 --> 00:03:09,840 Speaker 1: to be available not only in the US, but in 60 00:03:09,880 --> 00:03:13,080 Speaker 1: Canada and Australia and New Zealand and South Africa and 61 00:03:13,360 --> 00:03:16,360 Speaker 1: in India. You know, when we think cars. Two things 62 00:03:16,360 --> 00:03:19,160 Speaker 1: come to mind immediately, the craze around Formula one and 63 00:03:19,480 --> 00:03:21,600 Speaker 1: EV's of course, which you mentioned. And I want to 64 00:03:21,600 --> 00:03:23,000 Speaker 1: start with the EV space. I want to take a 65 00:03:23,040 --> 00:03:25,560 Speaker 1: sixty thousand foot view and really talk about kind of 66 00:03:25,560 --> 00:03:28,560 Speaker 1: appetite for cars right now. When you're talking about buying 67 00:03:28,600 --> 00:03:30,240 Speaker 1: a car, I think there's a lot of concerns about 68 00:03:30,440 --> 00:03:32,160 Speaker 1: obviously what kind of car you want to buy, but 69 00:03:32,200 --> 00:03:35,520 Speaker 1: what can you really afford, not now in the immediate space, 70 00:03:35,560 --> 00:03:37,360 Speaker 1: but in the long term. And I think evs are 71 00:03:37,360 --> 00:03:39,800 Speaker 1: a big part of that conversation. We know the Biden 72 00:03:39,800 --> 00:03:43,280 Speaker 1: administration has been very vocal about incentivizing these kind of 73 00:03:43,280 --> 00:03:46,680 Speaker 1: purchases at a time that even gas prices are still 74 00:03:46,800 --> 00:03:48,640 Speaker 1: kind of high, not as high as they were perhaps 75 00:03:48,680 --> 00:03:51,240 Speaker 1: in twenty twenty two, but still high enough to create 76 00:03:51,360 --> 00:03:53,960 Speaker 1: some concern. What are you seeing in the EV space? 77 00:03:54,240 --> 00:03:57,080 Speaker 1: People are having that internal struggle of I know I'm 78 00:03:57,160 --> 00:03:59,120 Speaker 1: ultimately going to be in the EV or a hybrid. 79 00:03:59,160 --> 00:04:00,880 Speaker 1: When do I do that? Is now the right time? 80 00:04:00,920 --> 00:04:02,560 Speaker 1: Every time they go to the gas station and the 81 00:04:02,560 --> 00:04:05,760 Speaker 1: prices are up, they're saying to themselves, oh, what do 82 00:04:05,840 --> 00:04:07,200 Speaker 1: I need to do to set this up? At my 83 00:04:07,280 --> 00:04:10,320 Speaker 1: home or go somewhere. So we're seeing a large increase. 84 00:04:10,360 --> 00:04:12,360 Speaker 1: I think you're seeing that most of the sales of 85 00:04:12,400 --> 00:04:15,720 Speaker 1: cars now even more than one in five approximately are 86 00:04:15,800 --> 00:04:20,159 Speaker 1: people buying evs and definitely prospecting evs. It's tens of 87 00:04:20,160 --> 00:04:22,560 Speaker 1: millions of people this year alone have been just looking 88 00:04:22,560 --> 00:04:25,320 Speaker 1: at the EV space or hybrid space. So there's so 89 00:04:25,360 --> 00:04:28,320 Speaker 1: many competitors beyond Tesla right now, we're testing those cars 90 00:04:28,360 --> 00:04:31,120 Speaker 1: all the time. I think for anyone who's listening right now, 91 00:04:31,160 --> 00:04:34,279 Speaker 1: if you haven't driven an EV and whatever you're thinking 92 00:04:34,320 --> 00:04:35,800 Speaker 1: one way or another, you need to do it to 93 00:04:35,920 --> 00:04:38,880 Speaker 1: experience it. It's just a different type of experience. Yeah, 94 00:04:38,920 --> 00:04:41,480 Speaker 1: and the range has gotten so much better over time, 95 00:04:41,560 --> 00:04:43,720 Speaker 1: and it will continue to get better. Yeah. It's interesting 96 00:04:43,720 --> 00:04:45,560 Speaker 1: because I mean we're talking about that from kind of 97 00:04:45,560 --> 00:04:48,800 Speaker 1: an experienced point of view, but then are people actually 98 00:04:48,920 --> 00:04:51,159 Speaker 1: adopting this. I mean it's I feel like the barriers 99 00:04:51,160 --> 00:04:54,320 Speaker 1: to entry to getting a vehicle or an electric vehicle, 100 00:04:54,320 --> 00:04:57,480 Speaker 1: excuse me, is are high, not just from the price perspective, 101 00:04:57,520 --> 00:05:00,440 Speaker 1: but from a charging perspective. The infrastructure isn't full built 102 00:05:00,440 --> 00:05:02,840 Speaker 1: out yet. Have you heard of concerns? Have you heard 103 00:05:02,880 --> 00:05:04,680 Speaker 1: of those kind of risks. Yeah, I think those are 104 00:05:04,680 --> 00:05:08,200 Speaker 1: fair concerns. I think depending upon where you are in 105 00:05:08,240 --> 00:05:10,760 Speaker 1: the country, you'll have a better system available to you 106 00:05:10,800 --> 00:05:13,640 Speaker 1: to charge the car. But for the most part, we've 107 00:05:13,640 --> 00:05:16,120 Speaker 1: come such a long way as you don't need superchargers 108 00:05:16,160 --> 00:05:18,599 Speaker 1: just for Tesla. There are all kinds of different ways 109 00:05:18,640 --> 00:05:21,280 Speaker 1: that people are charging their cars, and the ranges are 110 00:05:21,279 --> 00:05:22,880 Speaker 1: getting better and better, so you don't have to charge 111 00:05:22,880 --> 00:05:25,919 Speaker 1: it as much, and there's easier and easier ways to 112 00:05:25,920 --> 00:05:28,120 Speaker 1: do it at home, to set up a system where 113 00:05:28,120 --> 00:05:29,920 Speaker 1: you can actually plug in the car overnight and it's 114 00:05:29,920 --> 00:05:32,120 Speaker 1: ready to go in the morning. So we're seeing an 115 00:05:32,160 --> 00:05:36,080 Speaker 1: immense interest in it, not only from the environmental point 116 00:05:36,080 --> 00:05:38,080 Speaker 1: of view, but from the comfort level too. Then now 117 00:05:38,120 --> 00:05:40,760 Speaker 1: the cars, because they're software driven, they can do so 118 00:05:40,800 --> 00:05:43,400 Speaker 1: many different things and they can be updated overnight. And 119 00:05:43,600 --> 00:05:47,280 Speaker 1: while we're not at autonomous cars right now, the capabilities 120 00:05:47,279 --> 00:05:49,160 Speaker 1: of the car when you start removing the engine, when 121 00:05:49,200 --> 00:05:52,279 Speaker 1: you start changing the designs are really attractive to people. 122 00:05:52,440 --> 00:05:54,200 Speaker 1: You know, talk to me a little bit about then 123 00:05:54,240 --> 00:05:57,440 Speaker 1: the concerns around kind of gas prices as well as 124 00:05:57,440 --> 00:05:59,599 Speaker 1: this something you're hearing a lot or any trends that 125 00:05:59,600 --> 00:06:01,839 Speaker 1: speak to you there. I think that we're seeing it 126 00:06:01,920 --> 00:06:04,719 Speaker 1: over and over again too. I think that right now 127 00:06:05,160 --> 00:06:07,640 Speaker 1: people want to figure out what their alternative is, whether 128 00:06:07,680 --> 00:06:10,159 Speaker 1: a hybrid, are going completely EV is the best thing 129 00:06:10,200 --> 00:06:13,880 Speaker 1: for them, and so with prices where they are with gas, 130 00:06:14,440 --> 00:06:16,400 Speaker 1: I think people are finding it even more and more 131 00:06:16,400 --> 00:06:20,440 Speaker 1: convenient to get an EV too. So I'm happy with 132 00:06:20,520 --> 00:06:23,400 Speaker 1: the kind of traffic we've seen over the last three years. 133 00:06:23,440 --> 00:06:26,160 Speaker 1: We've seen the height of our traffic across our websites 134 00:06:26,560 --> 00:06:29,520 Speaker 1: just looking for not only cars, but looking at the 135 00:06:29,520 --> 00:06:32,400 Speaker 1: EV space, and there's so many cars. Our car of 136 00:06:32,400 --> 00:06:34,680 Speaker 1: the Year, our SUV of the Year, our truck of 137 00:06:34,720 --> 00:06:39,520 Speaker 1: the Year have all been evs over the last two years. Yeah, 138 00:06:39,560 --> 00:06:41,800 Speaker 1: let's talk about the media side of your business as well, 139 00:06:41,839 --> 00:06:43,800 Speaker 1: because we talked about the car bit a little bit. 140 00:06:44,600 --> 00:06:47,359 Speaker 1: You're launching this media platform at a time when a 141 00:06:47,440 --> 00:06:51,000 Speaker 1: lot of media companies broadly are really struggling for viewership, 142 00:06:51,040 --> 00:06:54,320 Speaker 1: struggling for kind of keeping people's attention. How are you 143 00:06:54,400 --> 00:06:57,600 Speaker 1: navigating that? If you like cars, and you don't have 144 00:06:57,640 --> 00:07:02,680 Speaker 1: to necessarily be a super fan of restorations or repairs, 145 00:07:02,720 --> 00:07:04,880 Speaker 1: but we do all kinds of car programming, so we 146 00:07:04,960 --> 00:07:08,119 Speaker 1: do top year America. We've done shows with Kevin Hard. 147 00:07:08,200 --> 00:07:10,280 Speaker 1: We've done the show called Roadkill, which is kind of 148 00:07:10,280 --> 00:07:13,520 Speaker 1: putting together cars with ingenuity and how to. So we 149 00:07:13,600 --> 00:07:15,760 Speaker 1: do the range. We have about eight thousand episodes, but 150 00:07:15,800 --> 00:07:19,080 Speaker 1: they've all been behind a paywall. Right you had to 151 00:07:19,120 --> 00:07:21,160 Speaker 1: buy it on TV or you had to get it 152 00:07:21,200 --> 00:07:23,400 Speaker 1: through our directed consumer service, and those things are both 153 00:07:23,440 --> 00:07:25,840 Speaker 1: really still very important. Those are our biggest reach, and 154 00:07:25,880 --> 00:07:29,040 Speaker 1: people pay us. But we've just started on what they 155 00:07:29,080 --> 00:07:32,800 Speaker 1: call fast like these free at supported streaming TV services. 156 00:07:33,120 --> 00:07:35,760 Speaker 1: So today we're announcing that we're going to be internationalists, 157 00:07:35,760 --> 00:07:37,640 Speaker 1: we pointed out, and we're going to be able to 158 00:07:37,640 --> 00:07:42,800 Speaker 1: make our networks available across the entire planet and we're 159 00:07:42,880 --> 00:07:46,200 Speaker 1: able to i think, reach a whole new audience that 160 00:07:46,320 --> 00:07:49,080 Speaker 1: don't necessarily want to pay for the programming, and we're 161 00:07:49,080 --> 00:07:52,880 Speaker 1: seeing that part of TV change and grow. So while 162 00:07:52,920 --> 00:07:55,240 Speaker 1: people can only have so many services they're willing to 163 00:07:55,280 --> 00:07:59,720 Speaker 1: pay for, they are very inclined to look at programming 164 00:07:59,760 --> 00:08:02,640 Speaker 1: that's ad supported, and ads are important and more relevant 165 00:08:02,640 --> 00:08:04,680 Speaker 1: than ever. Yeah, and it's fascinating because on the one hand, 166 00:08:04,680 --> 00:08:07,160 Speaker 1: it's a streaming platform, but it also is useful. I mean, 167 00:08:07,200 --> 00:08:10,840 Speaker 1: folks I got a very fun demo. In six questions, 168 00:08:10,920 --> 00:08:12,640 Speaker 1: you get to figure out what kind of your ideal 169 00:08:12,720 --> 00:08:15,080 Speaker 1: match for cars. They think it took me what a minute? 170 00:08:15,080 --> 00:08:19,440 Speaker 1: Twenty five? Yeah, see time me unbeknownst to me. But 171 00:08:20,040 --> 00:08:21,920 Speaker 1: it was interesting because it kind of takes into your 172 00:08:21,920 --> 00:08:25,040 Speaker 1: accounts some very basic needs. What's your budget? Are you 173 00:08:25,040 --> 00:08:27,160 Speaker 1: looking for an ev questions like that, and I think 174 00:08:27,200 --> 00:08:29,880 Speaker 1: it was really kind of new. I haven't really seen 175 00:08:29,920 --> 00:08:32,600 Speaker 1: anything like that when you look at kind of car 176 00:08:32,720 --> 00:08:35,520 Speaker 1: purchasing abilities at the moment, So folks go check it out. 177 00:08:35,559 --> 00:08:38,120 Speaker 1: We got to end though with a crucial question not 178 00:08:38,200 --> 00:08:41,239 Speaker 1: on the kind of cars or media space, but specifically 179 00:08:41,280 --> 00:08:45,960 Speaker 1: on F one versus NASCAR. My kind of thought on 180 00:08:46,000 --> 00:08:49,600 Speaker 1: this is I picture fast and furious immediately. That's my takeaway. 181 00:08:49,840 --> 00:08:52,160 Speaker 1: But I got to ask you about your opinion. You 182 00:08:52,200 --> 00:08:54,000 Speaker 1: come from a media background, you're kind of looking at 183 00:08:54,000 --> 00:08:56,800 Speaker 1: the business of cars as well. The growth of Formula 184 00:08:56,840 --> 00:08:59,680 Speaker 1: one is trying to achieve here in the States. How 185 00:09:00,040 --> 00:09:05,160 Speaker 1: plausible is that? Uh? Well' see regarding the car bat 186 00:09:05,240 --> 00:09:07,120 Speaker 1: you did, that was on MotorTrend dot com. So if 187 00:09:07,120 --> 00:09:09,000 Speaker 1: people want to figure out what cars right for them, 188 00:09:09,040 --> 00:09:12,439 Speaker 1: they can try that. As far as F One's concerned. Obviously, 189 00:09:12,760 --> 00:09:18,199 Speaker 1: a Netflix has kind of change the entire collective storytelling 190 00:09:18,240 --> 00:09:21,160 Speaker 1: around that that particular sport and giving people visibility into it. 191 00:09:21,160 --> 00:09:23,160 Speaker 1: And I think we're going to see, like we've seen 192 00:09:23,160 --> 00:09:26,200 Speaker 1: across the rest of the globe, this phenomenal appetite for it. 193 00:09:26,280 --> 00:09:28,080 Speaker 1: So that's why we're going to be We're in Vegas 194 00:09:28,160 --> 00:09:31,640 Speaker 1: with F one, we didn't event in Miami, and F 195 00:09:31,800 --> 00:09:34,040 Speaker 1: one is really kind of taking over the planet too. 196 00:09:34,080 --> 00:09:39,120 Speaker 1: So it's it's a high precision, really high interest, a 197 00:09:39,280 --> 00:09:41,760 Speaker 1: very expensive sport, and I think we're going to see 198 00:09:41,760 --> 00:09:44,040 Speaker 1: that continue to grow. I love Nascar. We did a 199 00:09:44,040 --> 00:09:46,440 Speaker 1: documentary on Nascar. We've done a lot of coverage on that. 200 00:09:46,880 --> 00:09:49,720 Speaker 1: But I think for the for the for the foreseeable future, 201 00:09:49,760 --> 00:09:51,160 Speaker 1: F One's going to be a really big part of 202 00:09:51,160 --> 00:09:53,640 Speaker 1: our lives. And for us, we want to cover everything 203 00:09:53,679 --> 00:09:56,400 Speaker 1: from how you buy a car, to how you enjoy racing, 204 00:09:56,480 --> 00:10:00,040 Speaker 1: to to really we do live auctions of cars, so 205 00:10:00,080 --> 00:10:02,200 Speaker 1: that's a really important part of the car culture, and 206 00:10:02,240 --> 00:10:06,000 Speaker 1: I think everyone's here to stay. Alex Whellan, Global President 207 00:10:06,200 --> 00:10:09,920 Speaker 1: and general manager of Motor Trend with Bloomberg's Kriti Gupta, 208 00:10:10,200 --> 00:10:13,320 Speaker 1: Michael bar Thanks for listening to a special edition of 209 00:10:13,400 --> 00:10:18,080 Speaker 1: the Bloomberg Business of Sports podcast. Catch us here every Monday, 210 00:10:18,160 --> 00:10:21,720 Speaker 1: Wednesday and Thursday, exploring the world of money and sports, 211 00:10:21,720 --> 00:10:24,720 Speaker 1: and catch me on Twitter a big bar sports. This 212 00:10:25,120 --> 00:10:30,240 Speaker 1: is Bloomberg Business of Sports from Bloomberg Radio around the world.