1 00:00:06,200 --> 00:00:09,400 Speaker 1: Welcome to another episode of Strictly Business, the podcast where 2 00:00:09,440 --> 00:00:11,480 Speaker 1: we talk with some of the brightest minds working in 3 00:00:11,560 --> 00:00:16,439 Speaker 1: media today. I'm Andrew Wallenstein with Variety. Any media company 4 00:00:16,480 --> 00:00:19,599 Speaker 1: worth its salt these days has a direct to consumer strategy, 5 00:00:20,079 --> 00:00:24,040 Speaker 1: and lions Gate is no exception. Once a mere premium channel, 6 00:00:24,120 --> 00:00:27,200 Speaker 1: lions Gate Stars brand, it has evolved into a global 7 00:00:27,280 --> 00:00:31,320 Speaker 1: streaming service, albeit one operating in a very crowded space. 8 00:00:31,920 --> 00:00:34,479 Speaker 1: To tell us how he's navigating the way forward at Stars, 9 00:00:34,560 --> 00:00:41,080 Speaker 1: my guest today is Stars CEO Jeff Hirsch. Thanks for 10 00:00:41,080 --> 00:00:43,760 Speaker 1: coming in, Jeff, Thanks for having me now. I remember 11 00:00:43,760 --> 00:00:46,720 Speaker 1: a time not too long ago when Stars wasn't even 12 00:00:47,040 --> 00:00:50,559 Speaker 1: in original programming, let alone streaming. But so much has 13 00:00:50,680 --> 00:00:54,200 Speaker 1: changed in recent years, and so I'm curious what is 14 00:00:54,240 --> 00:00:57,080 Speaker 1: it like to manage that level of change, to drive 15 00:00:57,200 --> 00:01:00,480 Speaker 1: that level of change. That's a great question. It exciting. 16 00:01:00,960 --> 00:01:03,880 Speaker 1: Anytime you have a business UH and you're a business leader, 17 00:01:03,960 --> 00:01:07,240 Speaker 1: you have the opportunity to take a company, UH look 18 00:01:07,280 --> 00:01:11,240 Speaker 1: at an opportunity through disruption and change the structure of 19 00:01:11,280 --> 00:01:14,560 Speaker 1: the company, the DNA of the company, the organization UH 20 00:01:14,680 --> 00:01:17,839 Speaker 1: to get results into the to the opportunity. It's it's 21 00:01:17,840 --> 00:01:19,240 Speaker 1: it's a lot of fun and it's what I like 22 00:01:19,360 --> 00:01:21,200 Speaker 1: to do. I would like to say the nice thing 23 00:01:21,200 --> 00:01:22,840 Speaker 1: about our business is I get a report card at 24 00:01:22,840 --> 00:01:25,280 Speaker 1: the end of every month, and so good, bad or ugly. 25 00:01:25,360 --> 00:01:27,360 Speaker 1: You see how you're doing, and that's exciting to me. 26 00:01:27,400 --> 00:01:29,880 Speaker 1: I like that risk reward of the business. And what 27 00:01:29,959 --> 00:01:33,679 Speaker 1: about that specific jump of Stars, this once channel that 28 00:01:33,840 --> 00:01:38,679 Speaker 1: is now especially internationally, growing into something much much bigger. 29 00:01:40,000 --> 00:01:42,240 Speaker 1: That's that's the fun part of us. What we get 30 00:01:42,280 --> 00:01:44,200 Speaker 1: up every morning, right was we look at the business 31 00:01:44,200 --> 00:01:46,520 Speaker 1: and so we four years ago when I joined Stars, 32 00:01:46,560 --> 00:01:49,520 Speaker 1: we were basically a linear business. We had a strategy 33 00:01:49,520 --> 00:01:52,080 Speaker 1: of being the house brand for our traditional linear partners. 34 00:01:52,120 --> 00:01:55,080 Speaker 1: We didn't have any aspiration of going over the top 35 00:01:55,200 --> 00:01:58,000 Speaker 1: or getting closer to the consumer at the time. Uh, 36 00:01:58,040 --> 00:01:59,480 Speaker 1: And we looked at the business that we need to 37 00:01:59,560 --> 00:02:01,520 Speaker 1: we have to. The business is changing. If we're not there, 38 00:02:01,560 --> 00:02:04,000 Speaker 1: we won't survive. And I think when you're back into 39 00:02:04,000 --> 00:02:06,360 Speaker 1: a corner, it makes you really nimble and really quick 40 00:02:06,360 --> 00:02:09,840 Speaker 1: to get get moving on that side. So, uh, the 41 00:02:09,880 --> 00:02:11,679 Speaker 1: first thing we did was we looked at the organization 42 00:02:11,680 --> 00:02:13,080 Speaker 1: and said, we've got a bunch of people who have 43 00:02:13,120 --> 00:02:15,320 Speaker 1: done wholesale their whole life. They know how to make 44 00:02:15,360 --> 00:02:18,160 Speaker 1: great pieces of clip arts, make pieces of box art, 45 00:02:18,440 --> 00:02:21,200 Speaker 1: you know, make trailers, make commercials that canned off to 46 00:02:21,240 --> 00:02:23,600 Speaker 1: somebody else who wants the consumer. But if we're really 47 00:02:23,600 --> 00:02:25,320 Speaker 1: going to be closer to the consumer and try to 48 00:02:25,360 --> 00:02:28,680 Speaker 1: harvest the business, we need to have people who understand acquisition, 49 00:02:28,720 --> 00:02:33,640 Speaker 1: digital acquisition, lifetime value, churn, analytics, data, all the things 50 00:02:33,680 --> 00:02:35,519 Speaker 1: that I did when I came from the cable side 51 00:02:35,800 --> 00:02:37,680 Speaker 1: now onto the wholesale side of the business. And so 52 00:02:37,760 --> 00:02:40,320 Speaker 1: we built this, I like to say, a bipolar organization 53 00:02:40,919 --> 00:02:43,679 Speaker 1: where we have a wholesale side that still services a 54 00:02:43,760 --> 00:02:46,480 Speaker 1: traditional business and still creates all the content, but we 55 00:02:46,520 --> 00:02:49,160 Speaker 1: have a retail side now that really understands the consumer. 56 00:02:49,240 --> 00:02:52,600 Speaker 1: Harvest data helps us understand what pieces of content to 57 00:02:52,639 --> 00:02:55,280 Speaker 1: put on, where to put them on, how to schedule 58 00:02:55,280 --> 00:02:58,080 Speaker 1: the network, what what pieces to buy in terms of 59 00:02:58,120 --> 00:03:01,839 Speaker 1: library that will then support the acquisition tools of our 60 00:03:01,960 --> 00:03:05,400 Speaker 1: originals on a retention basis, what kind of library you 61 00:03:05,440 --> 00:03:08,080 Speaker 1: want to go after, how we schedule the library, what 62 00:03:08,160 --> 00:03:10,440 Speaker 1: kind of price points we have, And so we've really 63 00:03:10,440 --> 00:03:12,280 Speaker 1: built a business that knows how to pivot back and 64 00:03:12,320 --> 00:03:14,720 Speaker 1: forth between wholesale and retail on a regular basis. And 65 00:03:14,760 --> 00:03:16,799 Speaker 1: I get what you're saying about the two different businesses, 66 00:03:16,840 --> 00:03:19,160 Speaker 1: but to some degree, aren't they really similar in the 67 00:03:19,240 --> 00:03:21,680 Speaker 1: sense that, yeah, it used to be just dealt with 68 00:03:22,040 --> 00:03:26,960 Speaker 1: Comcast and cable vision, but isn't dealing with Apple or Amazon, 69 00:03:27,200 --> 00:03:30,760 Speaker 1: which have the platforms where you could get the streaming 70 00:03:30,840 --> 00:03:33,680 Speaker 1: version of stars. Aren't they really just sort of another 71 00:03:33,840 --> 00:03:37,920 Speaker 1: branch of m VPD. True, they are the natural evolution 72 00:03:37,960 --> 00:03:39,840 Speaker 1: of the traditional business. When we had cable than you 73 00:03:39,920 --> 00:03:41,880 Speaker 1: had satellite, than you had telcos, and now you have 74 00:03:42,320 --> 00:03:45,080 Speaker 1: more technology disruption that brings the Amazons and the Apples 75 00:03:45,080 --> 00:03:47,760 Speaker 1: in the world. But those guys look at the business 76 00:03:47,840 --> 00:03:50,640 Speaker 1: and say video is key to driving our business, unlike 77 00:03:50,640 --> 00:03:54,600 Speaker 1: the traditional cable guys that video is their business, right. 78 00:03:54,960 --> 00:03:59,560 Speaker 1: Amazon business is selling selling products, right, Putting video on 79 00:03:59,640 --> 00:04:02,840 Speaker 1: top of that that that base helps them have people 80 00:04:02,880 --> 00:04:05,840 Speaker 1: stay on their service longer and buy more things. And 81 00:04:05,840 --> 00:04:07,640 Speaker 1: so it's a different paradigm in that point of view, 82 00:04:07,640 --> 00:04:10,040 Speaker 1: and so work tighter. We're closer a line than we 83 00:04:10,040 --> 00:04:12,960 Speaker 1: were with the traditional guys because they want us to 84 00:04:12,960 --> 00:04:15,880 Speaker 1: be successful because ultimately than they are successful. And so 85 00:04:15,920 --> 00:04:18,159 Speaker 1: we get more data from Amazon and Apple than we 86 00:04:18,200 --> 00:04:21,159 Speaker 1: did from the traditional guys. Um we are talking to 87 00:04:21,200 --> 00:04:23,760 Speaker 1: them every day. We could not do the international expansion 88 00:04:23,760 --> 00:04:26,040 Speaker 1: that we just announced on our last call, where we're 89 00:04:26,040 --> 00:04:28,840 Speaker 1: now in forty eight countries around the world without an 90 00:04:28,839 --> 00:04:31,120 Speaker 1: Amazon and Apple decided they wanted to have a tech 91 00:04:31,120 --> 00:04:33,320 Speaker 1: platform that was global, and so we now in a 92 00:04:33,440 --> 00:04:36,360 Speaker 1: very cost effective way of been able to expand Stars 93 00:04:36,360 --> 00:04:38,599 Speaker 1: from a domestic business to a global business within a 94 00:04:38,680 --> 00:04:41,120 Speaker 1: year based on the backs of Amazon and Apples. We 95 00:04:41,120 --> 00:04:43,440 Speaker 1: weren't able to do that with the traditional teleco partners. 96 00:04:43,760 --> 00:04:47,240 Speaker 1: And so while yes they are wholesalers, we get much 97 00:04:47,240 --> 00:04:49,599 Speaker 1: more data from them. We are much more included in 98 00:04:49,640 --> 00:04:52,720 Speaker 1: their business uh and are part really true partners than 99 00:04:52,760 --> 00:04:56,680 Speaker 1: we are vendors or content providers. And then we have 100 00:04:56,720 --> 00:04:59,080 Speaker 1: our retail business, which you know is a direct to 101 00:04:59,120 --> 00:05:02,560 Speaker 1: consumer app of scale, which we control, We own the customer, 102 00:05:02,600 --> 00:05:05,120 Speaker 1: and we get a ton of data that that that product, 103 00:05:05,480 --> 00:05:07,359 Speaker 1: and so we are now able to do three things 104 00:05:07,360 --> 00:05:10,279 Speaker 1: with that. With that With that direct the consumer business, one, 105 00:05:10,520 --> 00:05:12,920 Speaker 1: we've built a tool working within m T Media Labs 106 00:05:13,279 --> 00:05:15,960 Speaker 1: and a third party consultant that allows us to take 107 00:05:16,000 --> 00:05:18,760 Speaker 1: all of our content scripts and throw it through an 108 00:05:18,800 --> 00:05:21,120 Speaker 1: AI machine and say how does it relate to shows 109 00:05:21,120 --> 00:05:23,239 Speaker 1: that are on the air, Because we're trying to figure 110 00:05:23,240 --> 00:05:26,120 Speaker 1: out how to extend lifetime value. So we know that 111 00:05:26,200 --> 00:05:28,599 Speaker 1: when Power comes on the air, there's a bunch of 112 00:05:28,640 --> 00:05:31,200 Speaker 1: consumers that come on for Power, and then they make 113 00:05:31,200 --> 00:05:35,240 Speaker 1: clear Power is a TV powers the TV show and stars. Um, 114 00:05:35,560 --> 00:05:37,880 Speaker 1: I get very into our business and I passionate about it, 115 00:05:37,880 --> 00:05:40,600 Speaker 1: so I apologize, but it's our biggest show, eleven million 116 00:05:41,200 --> 00:05:44,599 Speaker 1: viewers a week, both on the traditional and the digital side. 117 00:05:45,080 --> 00:05:47,400 Speaker 1: But when they come on there, they come on and 118 00:05:47,440 --> 00:05:49,279 Speaker 1: watch There's a large portion that just come on and 119 00:05:49,320 --> 00:05:52,160 Speaker 1: watch Power and then when Powers overleave and that's great 120 00:05:52,200 --> 00:05:53,920 Speaker 1: for the business because we get a lot of acquisition. 121 00:05:54,000 --> 00:05:57,320 Speaker 1: But the key they're really building a subscription business is 122 00:05:57,360 --> 00:06:00,479 Speaker 1: figuring out how to extend that consumer past Power. And 123 00:06:00,560 --> 00:06:03,200 Speaker 1: so we built the data tool that we'll do three things. One, 124 00:06:03,320 --> 00:06:06,320 Speaker 1: it tells us what show really ties to that core 125 00:06:06,400 --> 00:06:09,719 Speaker 1: audience of Power, so that we're making content decisions, were 126 00:06:09,720 --> 00:06:11,680 Speaker 1: able to buy a piece of content that fits that 127 00:06:11,760 --> 00:06:13,880 Speaker 1: audience that we can put on behind it and extend 128 00:06:13,880 --> 00:06:16,840 Speaker 1: lifetime value. It allows us to then go into our 129 00:06:17,240 --> 00:06:20,760 Speaker 1: acquisition machine instead of buying five thousand title libraries from 130 00:06:20,800 --> 00:06:23,280 Speaker 1: Sony that are just bulk library. We can now say 131 00:06:23,320 --> 00:06:25,479 Speaker 1: we want titles that look like this, because we know 132 00:06:25,520 --> 00:06:28,039 Speaker 1: if we put them behind Power or put them behind 133 00:06:28,040 --> 00:06:30,960 Speaker 1: our other show like Outlander, I can extend lifetime value. 134 00:06:31,240 --> 00:06:32,960 Speaker 1: And then on the marketing side, it gives us really 135 00:06:33,040 --> 00:06:36,320 Speaker 1: crystal defined segments to go after. And so instead of 136 00:06:36,320 --> 00:06:38,920 Speaker 1: going to an agency and saying, find me a look alike, 137 00:06:39,279 --> 00:06:41,839 Speaker 1: I can say, go find this kind of consumer. And 138 00:06:41,880 --> 00:06:43,840 Speaker 1: so we're much more efficient in how we spend. We're 139 00:06:43,920 --> 00:06:45,800 Speaker 1: much more efficient in what we buy for the from 140 00:06:45,800 --> 00:06:48,400 Speaker 1: a content side, and so all of that data that 141 00:06:48,440 --> 00:06:50,240 Speaker 1: we've been able to pull out of our app, our 142 00:06:50,279 --> 00:06:53,640 Speaker 1: retail app has actually helped our entire business. Yeah. I 143 00:06:53,640 --> 00:06:55,440 Speaker 1: mean it really tells you when you start talking about 144 00:06:55,520 --> 00:06:58,599 Speaker 1: things like using an artificial intelligence, how much the game 145 00:06:58,680 --> 00:07:03,960 Speaker 1: has changed. Um. But also in terms of your direct business, 146 00:07:04,279 --> 00:07:08,960 Speaker 1: I'm curious, you know, are you getting more subscribers through 147 00:07:09,240 --> 00:07:12,520 Speaker 1: say Amazon or Apple or what have you than you 148 00:07:12,560 --> 00:07:15,360 Speaker 1: are just going direct? And also give us an update 149 00:07:15,360 --> 00:07:17,560 Speaker 1: like how many subscribers are we at now? And I 150 00:07:17,640 --> 00:07:20,120 Speaker 1: heard some pretty bullish projections for the future least, so 151 00:07:20,160 --> 00:07:23,160 Speaker 1: we just domestically just announced that we're four million paid 152 00:07:23,200 --> 00:07:26,960 Speaker 1: domestic subs. Of that, there's a combination of of Amazon, 153 00:07:27,040 --> 00:07:31,040 Speaker 1: our own director consumer retail product, Hulu and and and 154 00:07:31,080 --> 00:07:33,840 Speaker 1: Sling UH. And then we've also just announced that we're 155 00:07:33,840 --> 00:07:36,680 Speaker 1: now in forty eight countries around the world and we 156 00:07:36,720 --> 00:07:40,760 Speaker 1: think by that will generate another incremental fifteen to million 157 00:07:40,800 --> 00:07:44,040 Speaker 1: ot T subscribers for the business. And so we feel 158 00:07:44,080 --> 00:07:46,560 Speaker 1: really good about what we built. We also know, based 159 00:07:46,560 --> 00:07:48,960 Speaker 1: on what's going on in the in the industry at large, 160 00:07:49,560 --> 00:07:51,800 Speaker 1: UH that Disney doesn't have any plans to be international 161 00:07:51,920 --> 00:07:55,280 Speaker 1: until two I'm hearing one, or doesn't even have any 162 00:07:55,320 --> 00:07:58,000 Speaker 1: aspirations of going around the world. You know, Hulu had 163 00:07:58,040 --> 00:07:59,920 Speaker 1: a big misstep in Japan, and so I think they'll 164 00:08:00,120 --> 00:08:02,560 Speaker 1: slow to grow around the world. And so other than 165 00:08:02,600 --> 00:08:05,640 Speaker 1: Netflix will probably be the second or third largest pure 166 00:08:05,640 --> 00:08:07,960 Speaker 1: play asphalted player around the world. And we have a 167 00:08:08,000 --> 00:08:10,239 Speaker 1: three or four year window where we're out running ahead 168 00:08:10,240 --> 00:08:13,920 Speaker 1: of everybody. So that opportunity based on the content that 169 00:08:13,920 --> 00:08:15,800 Speaker 1: we we've been able to pull on the service, both 170 00:08:15,840 --> 00:08:18,920 Speaker 1: from third parties like you know downstairs today at the 171 00:08:19,040 --> 00:08:22,480 Speaker 1: at the event you're talking about the catching um and 172 00:08:22,520 --> 00:08:26,480 Speaker 1: they act from Hulu because Hulu doesn't has aspirations to 173 00:08:26,520 --> 00:08:27,880 Speaker 1: go around the world. I've been able to buy that 174 00:08:27,880 --> 00:08:30,400 Speaker 1: outside of the United States, and so Hulu was supporting 175 00:08:30,400 --> 00:08:33,199 Speaker 1: our international expansion because they're funding most of the production cost. 176 00:08:33,640 --> 00:08:35,640 Speaker 1: And then we tie that with what I think is 177 00:08:35,679 --> 00:08:38,640 Speaker 1: probably the biggest gem or the hidden little secreted lions Gate, 178 00:08:38,679 --> 00:08:41,280 Speaker 1: which is they have a massed the seventeen thousand title 179 00:08:41,360 --> 00:08:44,880 Speaker 1: library over the last eighteen years. So I have access 180 00:08:44,920 --> 00:08:48,840 Speaker 1: to that library. There shows our stars originals, plus augmenting 181 00:08:48,840 --> 00:08:51,839 Speaker 1: with third party content, and I've built the content and 182 00:08:52,040 --> 00:08:54,720 Speaker 1: spot products with really great broad content that I can 183 00:08:54,760 --> 00:08:57,200 Speaker 1: deploy around the world very quickly. So that's really what 184 00:08:57,240 --> 00:08:59,800 Speaker 1: it comes down to. You've got this great content library, 185 00:08:59,800 --> 00:09:02,840 Speaker 1: and you also have a very interesting window internationally where 186 00:09:02,880 --> 00:09:06,479 Speaker 1: you can take advantage of the absence of some competitors. 187 00:09:06,480 --> 00:09:10,040 Speaker 1: Though you know there's still competition in these forty eight 188 00:09:10,040 --> 00:09:12,640 Speaker 1: countries that you're in. So it's great that you have 189 00:09:12,720 --> 00:09:15,640 Speaker 1: this availability, but you know you're I assume going to 190 00:09:15,720 --> 00:09:18,400 Speaker 1: go up against Netflix, You're gonna go up against Amazon 191 00:09:18,480 --> 00:09:21,880 Speaker 1: in these territories. Do you have the firepower? We don't 192 00:09:21,880 --> 00:09:24,360 Speaker 1: look at those guys competition, to be honest, I mean 193 00:09:24,400 --> 00:09:26,240 Speaker 1: If you look at Netflix, Netflix is trying to be 194 00:09:26,280 --> 00:09:28,800 Speaker 1: all things to all people. Uh. They have a very 195 00:09:28,880 --> 00:09:30,560 Speaker 1: very high price point and they kind of have a 196 00:09:30,600 --> 00:09:33,079 Speaker 1: one size fits all around the world. But ultimately they're 197 00:09:33,080 --> 00:09:35,439 Speaker 1: trying to replace television, so they're trying to replace Sky 198 00:09:35,559 --> 00:09:38,280 Speaker 1: in UK. That's not the lane that we play in. 199 00:09:38,960 --> 00:09:41,720 Speaker 1: We are a premium service, just like we are domestically here. 200 00:09:41,720 --> 00:09:45,280 Speaker 1: We're priced domestically under all these guys internationally. Were placed 201 00:09:45,320 --> 00:09:47,520 Speaker 1: at four because we want to be seen as an 202 00:09:47,520 --> 00:09:51,480 Speaker 1: add on service. We believe, you know that the consumer 203 00:09:51,480 --> 00:09:53,840 Speaker 1: will have four or five spot services in the home 204 00:09:53,920 --> 00:09:56,400 Speaker 1: over time. We're happy to be number two, three or 205 00:09:56,400 --> 00:09:58,120 Speaker 1: four in the home. And if we're number three around 206 00:09:58,160 --> 00:09:59,840 Speaker 1: the world, that's a great place for stars to live, 207 00:10:00,280 --> 00:10:02,400 Speaker 1: got it. You know on the Amazons and the Apples 208 00:10:02,400 --> 00:10:04,560 Speaker 1: where their partners were don't compete with those guys. And 209 00:10:04,600 --> 00:10:07,000 Speaker 1: so if you look at Spain is a great market. 210 00:10:07,000 --> 00:10:09,520 Speaker 1: We're on Amazon, We're on Apple, We're also on Vota Phone, 211 00:10:09,559 --> 00:10:12,480 Speaker 1: we're also on Aurage, and so distribution looks a lot 212 00:10:12,520 --> 00:10:15,600 Speaker 1: like the domestic distribution, where wherever the consumer wants the product, 213 00:10:15,880 --> 00:10:18,319 Speaker 1: we're there. And so we're partners with all these guys. 214 00:10:18,360 --> 00:10:21,720 Speaker 1: We're not competing with with the local broadcasters or the 215 00:10:21,760 --> 00:10:24,760 Speaker 1: local cable guys, or or the Amazons or the Apples. 216 00:10:24,760 --> 00:10:27,040 Speaker 1: We're partners with all of them, aren't. Some of these 217 00:10:27,080 --> 00:10:30,079 Speaker 1: services not so much competitors. But front of me is 218 00:10:30,120 --> 00:10:32,920 Speaker 1: in the sense that you'll be Yes, Amazon will sell 219 00:10:32,960 --> 00:10:35,240 Speaker 1: you in a territory, but they will have their own 220 00:10:35,320 --> 00:10:38,840 Speaker 1: product streaming product in a territory. And Apple may not 221 00:10:38,960 --> 00:10:41,600 Speaker 1: be there yet, but their streaming service could go international 222 00:10:41,640 --> 00:10:44,040 Speaker 1: at some point too. Well. There we we hope that 223 00:10:44,040 --> 00:10:46,199 Speaker 1: their streaming service goes international. If you look at the 224 00:10:46,760 --> 00:10:49,880 Speaker 1: global footprint outside the States right now, only about five 225 00:10:49,920 --> 00:10:52,559 Speaker 1: percent of the consumers are actually watching video through SPoD. 226 00:10:52,640 --> 00:10:55,280 Speaker 1: So it's very very early days. And the one thing 227 00:10:55,280 --> 00:10:56,880 Speaker 1: that we do like about what Netflix being in a 228 00:10:56,920 --> 00:10:59,640 Speaker 1: hundred nine territories is they're charter starting to train the 229 00:10:59,679 --> 00:11:04,120 Speaker 1: cons humor that to to watch content through an spot functionality, 230 00:11:04,559 --> 00:11:06,360 Speaker 1: and so then we show up as number two around 231 00:11:06,360 --> 00:11:08,480 Speaker 1: the world. We get in early people are starting to 232 00:11:08,559 --> 00:11:10,199 Speaker 1: learn how to how to watch it in this way, 233 00:11:10,240 --> 00:11:11,679 Speaker 1: and they start to embrace that and they start to 234 00:11:11,679 --> 00:11:13,920 Speaker 1: buy the service. I think the other thing to think 235 00:11:13,920 --> 00:11:16,680 Speaker 1: about it is that our programming strategy is very different 236 00:11:16,720 --> 00:11:19,920 Speaker 1: than an Apple or an Amazon or even a Netflix. Right. 237 00:11:19,960 --> 00:11:22,839 Speaker 1: We are premium, we are focused, we are not as supported, 238 00:11:23,160 --> 00:11:26,000 Speaker 1: and to a certain extent, we skew female. And so 239 00:11:26,520 --> 00:11:28,800 Speaker 1: that I think we've seen around the world has been 240 00:11:28,880 --> 00:11:31,439 Speaker 1: very well received. Vota Phone is a great example. They 241 00:11:31,440 --> 00:11:33,760 Speaker 1: made a decision a year ago not to buy sports anymore, 242 00:11:34,080 --> 00:11:36,320 Speaker 1: and so they want to counter program against their competitors, 243 00:11:36,320 --> 00:11:39,160 Speaker 1: and Sports Stars comes along with shows like The Spanish 244 00:11:39,160 --> 00:11:42,560 Speaker 1: Princess and The White Queen and the White Princess and 245 00:11:42,640 --> 00:11:45,439 Speaker 1: Sweet Bitter and Outlander and all the different shows that 246 00:11:45,480 --> 00:11:48,000 Speaker 1: we have that really lean female, not at the exclusion 247 00:11:48,000 --> 00:11:50,199 Speaker 1: of men, but they do lean a little bit female. 248 00:11:50,360 --> 00:11:52,720 Speaker 1: It's a great place to program around the world, especially 249 00:11:52,720 --> 00:11:55,440 Speaker 1: in Europe right now because everything is so sports centric. 250 00:11:56,240 --> 00:11:58,800 Speaker 1: So you got to forty eight countries, but there's a 251 00:11:58,880 --> 00:12:01,800 Speaker 1: much bigger world as you look further out. Or are 252 00:12:01,800 --> 00:12:03,800 Speaker 1: you guys gonna be on some sort of arc like 253 00:12:03,920 --> 00:12:06,480 Speaker 1: Netflix where you're in hundreds at some point? We think 254 00:12:06,559 --> 00:12:08,559 Speaker 1: ultimately over the next three years will probably be in 255 00:12:08,640 --> 00:12:10,640 Speaker 1: ninety countries. You know. Some of it has to do 256 00:12:10,720 --> 00:12:13,720 Speaker 1: with the fact that a lot of the Lionsgate Library 257 00:12:13,760 --> 00:12:16,760 Speaker 1: content is on longer term licensing deals and so as 258 00:12:16,800 --> 00:12:19,040 Speaker 1: those are all off in certain territories that will then 259 00:12:19,120 --> 00:12:22,240 Speaker 1: launch of service behind it. Australia is a great example 260 00:12:22,240 --> 00:12:25,360 Speaker 1: of that. So you mentioned lions Gate again. You know 261 00:12:25,640 --> 00:12:28,960 Speaker 1: there was I think there was always an expectation of 262 00:12:28,960 --> 00:12:32,160 Speaker 1: synergy once that acquisition was made a few years ago, 263 00:12:32,520 --> 00:12:34,600 Speaker 1: but there's been some bumps in the road there. There's 264 00:12:34,600 --> 00:12:37,600 Speaker 1: been reports that you know, the previous CEO, Chris all Breck, 265 00:12:37,760 --> 00:12:40,200 Speaker 1: left because he didn't quite see eye to eye in 266 00:12:40,280 --> 00:12:43,600 Speaker 1: terms of how these two entities should come together. So 267 00:12:44,000 --> 00:12:45,880 Speaker 1: are you guys now out of place where everyone's on 268 00:12:45,920 --> 00:12:50,320 Speaker 1: the same page. You know, recently we've just uh consolidated 269 00:12:50,320 --> 00:12:52,920 Speaker 1: a couple of the organizations we had to production entities 270 00:12:53,200 --> 00:12:56,040 Speaker 1: between Stars and the Lionsgate TV side, we've put those together. 271 00:12:56,080 --> 00:12:58,559 Speaker 1: It makes sense to have, you know, a real great 272 00:12:58,720 --> 00:13:00,760 Speaker 1: center of excellence around for auction one of them in 273 00:13:00,760 --> 00:13:03,680 Speaker 1: the business hr same kind of function we've put together. 274 00:13:04,040 --> 00:13:06,600 Speaker 1: But I think the real benefit that we've seen most 275 00:13:06,640 --> 00:13:09,640 Speaker 1: recently from the business is twofold one is we were 276 00:13:09,760 --> 00:13:13,080 Speaker 1: we could not go international as Stars without the Lionsgate Library. 277 00:13:13,120 --> 00:13:16,080 Speaker 1: It's just planned and simple. The the integration or the 278 00:13:16,120 --> 00:13:18,439 Speaker 1: deal allowed us to do what we just announced two 279 00:13:18,440 --> 00:13:20,600 Speaker 1: weeks ago on our call and to be live in 280 00:13:20,679 --> 00:13:23,959 Speaker 1: forty countries within a year. I mean, we've I don't 281 00:13:24,000 --> 00:13:26,160 Speaker 1: think people understand how fast we moved to go from 282 00:13:26,200 --> 00:13:28,880 Speaker 1: this was an idea at the board to being in 283 00:13:28,960 --> 00:13:31,920 Speaker 1: forty eight territories and almost less than a year, which 284 00:13:31,960 --> 00:13:34,000 Speaker 1: is you know, I'm really proud of the organization and 285 00:13:34,000 --> 00:13:37,199 Speaker 1: we have people working endless hours or denver operation had 286 00:13:37,240 --> 00:13:40,319 Speaker 1: to take all of this content, you know, and actually 287 00:13:40,440 --> 00:13:43,920 Speaker 1: get it prepared for forty eight different languages and sometimes 288 00:13:43,920 --> 00:13:46,480 Speaker 1: even more. I mean in India there's probably seven or 289 00:13:46,520 --> 00:13:50,200 Speaker 1: eight different you know languages alone, and so um, we had, 290 00:13:50,440 --> 00:13:52,439 Speaker 1: you know, people working three shifts around the clock to 291 00:13:52,520 --> 00:13:54,320 Speaker 1: get this thing prepared to launch the service in the 292 00:13:54,320 --> 00:13:56,599 Speaker 1: time we did. So. I'm really proud of the organization 293 00:13:56,640 --> 00:13:59,280 Speaker 1: and the focus that we that we had and how 294 00:13:59,320 --> 00:14:01,319 Speaker 1: we executed, which to me is the biggest risk in 295 00:14:01,360 --> 00:14:03,920 Speaker 1: any of this is the execution risk. Um. The other 296 00:14:03,960 --> 00:14:05,280 Speaker 1: side of it is on the content, you know. I 297 00:14:05,320 --> 00:14:08,560 Speaker 1: think now, um, we are seeing more shows coming from 298 00:14:08,640 --> 00:14:11,400 Speaker 1: Lionscate to you than we've seen before. We're seeing more 299 00:14:11,400 --> 00:14:13,480 Speaker 1: shows coming in from the outside that we've seen before. 300 00:14:13,480 --> 00:14:15,959 Speaker 1: We've been more shows in the last four or five 301 00:14:15,960 --> 00:14:17,560 Speaker 1: weeks than we did in the last year, and I'm 302 00:14:17,640 --> 00:14:20,720 Speaker 1: really excited about the fiscal one slate. We'll probably have 303 00:14:20,760 --> 00:14:24,120 Speaker 1: six or seven new shows on that really um fit 304 00:14:24,280 --> 00:14:26,400 Speaker 1: the kind of demo that we're going after and that 305 00:14:26,400 --> 00:14:28,960 Speaker 1: will really help us fill the gaps that we have 306 00:14:29,080 --> 00:14:32,000 Speaker 1: on the lineup today to extend lifetime value. And so 307 00:14:32,000 --> 00:14:34,560 Speaker 1: I think everything is moving faster and more focused than 308 00:14:34,560 --> 00:14:37,840 Speaker 1: it has before. And will the spending being increased to 309 00:14:38,520 --> 00:14:41,360 Speaker 1: allow for the kind of ramp up and content you're 310 00:14:41,360 --> 00:14:43,160 Speaker 1: gonna need. Yeah, I think you'll see you over the 311 00:14:43,160 --> 00:14:45,640 Speaker 1: next two to three years. Stars will continue to ramp 312 00:14:45,680 --> 00:14:49,920 Speaker 1: the domestic slate in service of the international business. UH, 313 00:14:49,960 --> 00:14:51,800 Speaker 1: and so everything that we do now has to serve 314 00:14:51,880 --> 00:14:55,400 Speaker 1: the world. UH. Girlfriend Experience three, which will will bring 315 00:14:55,400 --> 00:14:59,720 Speaker 1: back sometime in physical one. UH. The original construct was 316 00:14:59,800 --> 00:15:02,920 Speaker 1: to in Seattle with a storyline based in Seattle, and 317 00:15:02,960 --> 00:15:04,800 Speaker 1: we talked to Soderberg and the team about doing it 318 00:15:04,840 --> 00:15:06,760 Speaker 1: in London and having it a kind of an international 319 00:15:06,840 --> 00:15:08,880 Speaker 1: based story and so we will do that. And so 320 00:15:08,960 --> 00:15:11,240 Speaker 1: as the slate continues to grow, it also has to 321 00:15:11,360 --> 00:15:14,560 Speaker 1: feed the global You know the global footprint with the 322 00:15:14,640 --> 00:15:18,800 Speaker 1: opportunity that you have. I wonder if there's another challenge 323 00:15:18,800 --> 00:15:21,840 Speaker 1: when you look at something like Netflix in two hundred countries. Well, 324 00:15:21,920 --> 00:15:27,160 Speaker 1: they've also moved in a big way to international localized programming. Um, 325 00:15:27,320 --> 00:15:28,960 Speaker 1: is that the road you're going to have to go 326 00:15:29,040 --> 00:15:31,360 Speaker 1: down at some point because it seems like in the 327 00:15:31,640 --> 00:15:35,040 Speaker 1: very not too distant future you're gonna have more subscribers 328 00:15:35,080 --> 00:15:38,960 Speaker 1: outside the US than in that's the hope. Yeah, Well, 329 00:15:39,080 --> 00:15:40,560 Speaker 1: you know, the good news is Liion Skate has a 330 00:15:41,320 --> 00:15:45,040 Speaker 1: large production office and a great executive team in London. 331 00:15:45,120 --> 00:15:48,560 Speaker 1: Right now we're talking about taking the first run movies 332 00:15:48,600 --> 00:15:50,720 Speaker 1: that come out of the UK onto the service in 333 00:15:50,880 --> 00:15:54,760 Speaker 1: some kind of a quasi pay to pay three service. 334 00:15:54,800 --> 00:15:58,160 Speaker 1: We've got a team in uh Spain right now looking 335 00:15:58,200 --> 00:16:00,600 Speaker 1: up setting up local co pros in Spain and we 336 00:16:00,640 --> 00:16:02,800 Speaker 1: think we probably have to do that in Germany as well. 337 00:16:03,320 --> 00:16:05,920 Speaker 1: Our stars play Arabia Venture in the nineteen mina markets 338 00:16:05,960 --> 00:16:08,400 Speaker 1: is actually sticking its toe into local production right now, 339 00:16:08,480 --> 00:16:10,520 Speaker 1: producing one or two shows. And then we have a 340 00:16:10,560 --> 00:16:12,760 Speaker 1: lions Gate office in India where we're actually looking at 341 00:16:12,800 --> 00:16:14,840 Speaker 1: doing six to eight movies locally in a couple of 342 00:16:14,880 --> 00:16:17,400 Speaker 1: series locally as well, and so we are we think 343 00:16:17,400 --> 00:16:20,640 Speaker 1: we have UH boots on the ground in the right 344 00:16:20,880 --> 00:16:22,880 Speaker 1: places of the world where we need the local content. 345 00:16:24,040 --> 00:16:27,840 Speaker 1: And I also got to wonder about lions Gate and yes, 346 00:16:28,200 --> 00:16:31,640 Speaker 1: a bigger company that you're availing yourself of its resources, 347 00:16:31,640 --> 00:16:34,720 Speaker 1: but there's been reports that stars could be in play. 348 00:16:35,000 --> 00:16:39,480 Speaker 1: CBS has been mentioned as a potential acquirer, and I'm wondering, 349 00:16:39,640 --> 00:16:42,600 Speaker 1: is your strategy something that can work no matter what 350 00:16:42,840 --> 00:16:44,880 Speaker 1: company you're at, as long as it's huge and has 351 00:16:44,920 --> 00:16:47,800 Speaker 1: the resources. If you look around the world today, and 352 00:16:47,800 --> 00:16:49,760 Speaker 1: this is why we feel so good about our our 353 00:16:49,800 --> 00:16:55,720 Speaker 1: opportunity internationally. HBO has done some ventures like in Nordics 354 00:16:55,760 --> 00:16:57,560 Speaker 1: where they have some tern but they've licensed their content 355 00:16:57,600 --> 00:16:59,960 Speaker 1: out all over the world and long term licensing deal 356 00:17:00,120 --> 00:17:02,280 Speaker 1: and so Game of Thrones is on Sky for example, 357 00:17:02,280 --> 00:17:06,200 Speaker 1: in uk Um Showtime, same thing. They've licensed their content out. 358 00:17:06,480 --> 00:17:09,240 Speaker 1: They've made the decision that licensing content is a real big, 359 00:17:09,280 --> 00:17:11,439 Speaker 1: you know, quarterly revenue driver for them, and they continue 360 00:17:11,480 --> 00:17:13,760 Speaker 1: to do that. I think they've licensed their content everywhere 361 00:17:13,760 --> 00:17:15,920 Speaker 1: in the world except for Spain and lad Am and 362 00:17:16,000 --> 00:17:18,400 Speaker 1: hopefully we'll do a licensing deal with them. To put 363 00:17:18,440 --> 00:17:20,160 Speaker 1: it on our service so that we can block them 364 00:17:20,160 --> 00:17:22,960 Speaker 1: out eventually. UM So I feel like we have a 365 00:17:23,000 --> 00:17:25,840 Speaker 1: really we've created a really unique mouse trap around the world. 366 00:17:26,400 --> 00:17:29,280 Speaker 1: And while we don't talk about M and A publicly, 367 00:17:30,240 --> 00:17:32,240 Speaker 1: I think it puts us in a very very unique 368 00:17:32,240 --> 00:17:34,680 Speaker 1: position to somebody to come and say, look what they've 369 00:17:34,680 --> 00:17:36,879 Speaker 1: built over the last year and all the local deals, 370 00:17:37,040 --> 00:17:38,560 Speaker 1: the local deals that we've done, and I think we've 371 00:17:38,560 --> 00:17:41,720 Speaker 1: done eight team to the stage. I was actually surprised 372 00:17:41,760 --> 00:17:43,480 Speaker 1: it took as quick we got done as quickly as 373 00:17:43,520 --> 00:17:45,200 Speaker 1: we did, because I'm used to working with the local 374 00:17:45,200 --> 00:17:48,399 Speaker 1: telephone companies here, which take forever. But we've done so 375 00:17:48,440 --> 00:17:50,520 Speaker 1: many local deals right now on top of the global 376 00:17:50,560 --> 00:17:52,880 Speaker 1: partner deals that we have that it would be hard 377 00:17:52,880 --> 00:17:54,840 Speaker 1: for somebody to replicate that in the time that we 378 00:17:54,880 --> 00:17:57,600 Speaker 1: did it in term their focus. And so it's kind 379 00:17:57,600 --> 00:17:59,680 Speaker 1: of a build versus by for somebody, and I think 380 00:17:59,800 --> 00:18:02,199 Speaker 1: we built a really good mouse stop for them. You 381 00:18:02,280 --> 00:18:05,480 Speaker 1: mentioned HBO and Showtime. I mean there was a time 382 00:18:05,520 --> 00:18:07,679 Speaker 1: I don't know ten years ago where you know, you 383 00:18:07,760 --> 00:18:11,119 Speaker 1: can't say the word Stars without saying HBO and Showtime. 384 00:18:11,160 --> 00:18:14,359 Speaker 1: It was such a distinct competitive set. My guess is 385 00:18:14,400 --> 00:18:16,720 Speaker 1: you look at the world in a much broader way 386 00:18:16,720 --> 00:18:19,560 Speaker 1: as you think about competition these days. Yeah, like I 387 00:18:19,600 --> 00:18:21,359 Speaker 1: said earlier, I mean we look at these guys as 388 00:18:21,359 --> 00:18:23,239 Speaker 1: all of our partners. You know, again, we don't even 389 00:18:23,280 --> 00:18:25,719 Speaker 1: look at Netflix as a competitor. We priced our product 390 00:18:25,760 --> 00:18:28,800 Speaker 1: domestically to be a complimentary to, not a replacement of. 391 00:18:29,359 --> 00:18:31,320 Speaker 1: If you look at a lot of consumer behavior and 392 00:18:31,359 --> 00:18:34,359 Speaker 1: a lot of consumer research, anything over ten dollars is 393 00:18:34,400 --> 00:18:36,560 Speaker 1: a decision for a consumer. And so if you're HBO 394 00:18:36,600 --> 00:18:41,040 Speaker 1: at and your Netflix at twelve, subconsciously you're asking the 395 00:18:41,040 --> 00:18:43,680 Speaker 1: consumer to choose between one of the two. But because 396 00:18:43,720 --> 00:18:46,480 Speaker 1: we've priced below ten dollars and there's a range between 397 00:18:46,520 --> 00:18:49,520 Speaker 1: five and seven where it's people it's kind of a decision, 398 00:18:49,520 --> 00:18:51,520 Speaker 1: but it's not much of a decision. Under five. People 399 00:18:51,560 --> 00:18:53,679 Speaker 1: just don't think it's a decision at all. And so 400 00:18:53,760 --> 00:18:56,600 Speaker 1: we've tried to price our product both domestically and abroad 401 00:18:57,040 --> 00:19:00,360 Speaker 1: to be that addition to, not replacement of. So we 402 00:19:00,480 --> 00:19:03,800 Speaker 1: vision a day where a home has a Netflix, uh, 403 00:19:03,840 --> 00:19:06,919 Speaker 1: you know, a Netflix and Amazon and the Stars, or 404 00:19:07,040 --> 00:19:09,520 Speaker 1: a Netflix and an HBO and the Stars. But we've 405 00:19:09,560 --> 00:19:12,120 Speaker 1: priced ourselves to be that number two, three, or four 406 00:19:12,280 --> 00:19:14,720 Speaker 1: spot in the home, not trying to be number one. 407 00:19:14,800 --> 00:19:18,199 Speaker 1: And so that being said, other than competing for talent 408 00:19:18,280 --> 00:19:20,560 Speaker 1: and showrunners, which is a whole other conversation we can have. 409 00:19:21,200 --> 00:19:23,000 Speaker 1: We feel like these guys are all of our they're 410 00:19:23,000 --> 00:19:25,359 Speaker 1: all partners of ours or freenomies as you like to say, 411 00:19:25,640 --> 00:19:29,760 Speaker 1: but not real true competitors. Well, let's have that production conversation. 412 00:19:30,080 --> 00:19:34,199 Speaker 1: I can't imagine how difficult it is when you're sitting 413 00:19:34,240 --> 00:19:38,560 Speaker 1: next to Netflix, HBO, Showtime, UH to get the best talent, 414 00:19:38,680 --> 00:19:42,600 Speaker 1: to get the best creators when they're being wooed by 415 00:19:42,880 --> 00:19:47,040 Speaker 1: much bigger dollars. How how do you stay competitive there? 416 00:19:47,280 --> 00:19:48,919 Speaker 1: It's a great question. I think it's something that we 417 00:19:48,960 --> 00:19:51,880 Speaker 1: wrestle with every day. One, I think our programming strategy 418 00:19:51,920 --> 00:19:55,160 Speaker 1: is fundamentally different than everybody else's. We've talked about Netflix 419 00:19:55,240 --> 00:19:57,400 Speaker 1: is trying to be really really broad. Amazon is trying 420 00:19:57,440 --> 00:20:00,480 Speaker 1: to be really really broad. HBO was and trying to 421 00:20:00,520 --> 00:20:02,280 Speaker 1: be really really broad. Who knows what they're going to 422 00:20:02,359 --> 00:20:04,880 Speaker 1: become now, Um, you read the same thing as I read. 423 00:20:04,920 --> 00:20:06,560 Speaker 1: I think they will become broader than they have been 424 00:20:06,600 --> 00:20:10,440 Speaker 1: in the past. Um, And so you know, because we're 425 00:20:10,440 --> 00:20:14,159 Speaker 1: really focused on this premium female demographic because what with 426 00:20:14,280 --> 00:20:18,360 Speaker 1: the secondary focus of premium African American females and premium 427 00:20:18,640 --> 00:20:21,200 Speaker 1: Latin X females, we are all look kind of off 428 00:20:21,200 --> 00:20:23,920 Speaker 1: on the side doing things uniquely that everybody else isn't 429 00:20:23,920 --> 00:20:26,399 Speaker 1: looking at. And so while we're in all the big pitches, 430 00:20:26,440 --> 00:20:28,480 Speaker 1: I just came from one from one of the other day. 431 00:20:28,520 --> 00:20:30,600 Speaker 1: It just wasn't on strategy for us. So it's not 432 00:20:30,640 --> 00:20:32,560 Speaker 1: like we were going to compete and lose. It just 433 00:20:32,600 --> 00:20:35,360 Speaker 1: didn't fit our demo. And as we talked about earlier, 434 00:20:35,520 --> 00:20:37,720 Speaker 1: where we have to have something on the air every 435 00:20:37,720 --> 00:20:40,760 Speaker 1: two to four weeks to serve those demos, to keep 436 00:20:40,880 --> 00:20:44,480 Speaker 1: churnlow and extend lifetime value, we're really focused on that, 437 00:20:44,760 --> 00:20:47,000 Speaker 1: and so we found ourselves in great position is to 438 00:20:47,040 --> 00:20:50,600 Speaker 1: buy things like Dangerous Liaisons around the World and Elizabeth 439 00:20:50,840 --> 00:20:55,199 Speaker 1: and multiple different shows that really feed that Outlander audience, 440 00:20:55,240 --> 00:20:57,800 Speaker 1: which is one of our biggest shows. Um, you know, 441 00:20:57,840 --> 00:21:00,800 Speaker 1: the competition for good writers and for good show runners, 442 00:21:01,200 --> 00:21:03,600 Speaker 1: that's tough. That's really hard to find people who really 443 00:21:03,640 --> 00:21:05,439 Speaker 1: know how to mount and run a show and deliver 444 00:21:05,520 --> 00:21:08,159 Speaker 1: it on time, on budget, with a great piece of content. 445 00:21:08,520 --> 00:21:10,560 Speaker 1: But I think What we've also done, really really well 446 00:21:11,160 --> 00:21:13,800 Speaker 1: is built kind of a mentorship program within our writer's 447 00:21:13,840 --> 00:21:16,439 Speaker 1: rooms where we always have a number two, three, or 448 00:21:16,480 --> 00:21:19,359 Speaker 1: four that's they're learning, so that we can home grow 449 00:21:19,520 --> 00:21:21,760 Speaker 1: all of our own show runners going forward that know 450 00:21:21,880 --> 00:21:24,120 Speaker 1: the demos, that know that see the writing room and 451 00:21:24,119 --> 00:21:26,720 Speaker 1: really kind of become ready to be the next one up. 452 00:21:27,160 --> 00:21:29,040 Speaker 1: And that's been a way that we've been avoiding kind 453 00:21:29,040 --> 00:21:31,600 Speaker 1: of the escalating cost of the show runners. Well, I 454 00:21:31,640 --> 00:21:35,119 Speaker 1: think costs escalating is something that's beyond just show runners. 455 00:21:35,160 --> 00:21:37,080 Speaker 1: I think peak TV has driven up costs and a 456 00:21:37,119 --> 00:21:40,600 Speaker 1: lot of different respects. How do you keep a ceiling 457 00:21:40,680 --> 00:21:43,679 Speaker 1: on that? It's a good question. I think we have 458 00:21:43,800 --> 00:21:46,280 Speaker 1: to look at different formats. I mean, we have shows 459 00:21:46,280 --> 00:21:50,320 Speaker 1: that run fifty nine minutes, and I'm not sure consumer 460 00:21:50,320 --> 00:21:52,520 Speaker 1: would would really notice that the show was fifty one 461 00:21:52,560 --> 00:21:55,320 Speaker 1: minutes or fifty nine minutes, but that that different eight 462 00:21:55,359 --> 00:21:57,760 Speaker 1: minutes per episode is a net is one less shooting 463 00:21:57,840 --> 00:22:00,399 Speaker 1: day in terms of a budget. And I also think 464 00:22:00,440 --> 00:22:03,119 Speaker 1: there's different ways to to shoot shows that they aren't 465 00:22:03,160 --> 00:22:05,560 Speaker 1: the five six, seven million dollars shows that every agent 466 00:22:05,600 --> 00:22:08,119 Speaker 1: kind of brings into us. Soderberg that we've had a 467 00:22:08,200 --> 00:22:11,520 Speaker 1: wonderful relationship with Steven Soderberg bringing in uh kind of 468 00:22:11,560 --> 00:22:15,360 Speaker 1: indie film type producer shows like Girlfriend Experience, now Apocalypse, 469 00:22:15,560 --> 00:22:17,159 Speaker 1: where those are a million, million and a half an 470 00:22:17,200 --> 00:22:20,359 Speaker 1: hour versus these really grandiose seven million dollar an hour show. 471 00:22:20,760 --> 00:22:23,480 Speaker 1: And to be honest, they look great, the storyline is great, 472 00:22:23,520 --> 00:22:26,560 Speaker 1: the running spectacular. Steven is one of the best, you know, 473 00:22:27,240 --> 00:22:28,679 Speaker 1: guys in the business, and you put them on air 474 00:22:28,760 --> 00:22:30,880 Speaker 1: and people love them, and I don't think they consumer 475 00:22:30,920 --> 00:22:33,639 Speaker 1: doesn't really, you know, say, well, it's a million dollars 476 00:22:33,640 --> 00:22:35,359 Speaker 1: an hour versus seven million dollars hours, so I'm not 477 00:22:35,359 --> 00:22:38,359 Speaker 1: gonna watch it. So there's different formats, there's different lengths. 478 00:22:38,800 --> 00:22:41,199 Speaker 1: We're playing with all that right now, especially in the 479 00:22:41,200 --> 00:22:43,760 Speaker 1: digital world where where so much of the viewership now 480 00:22:43,760 --> 00:22:46,639 Speaker 1: has moved off of linear where Leonard, you had to 481 00:22:46,680 --> 00:22:48,840 Speaker 1: worry about the breaks. I mean the old the old broadcast, 482 00:22:48,840 --> 00:22:51,639 Speaker 1: which is what's the lead show and then what's the 483 00:22:51,680 --> 00:22:54,040 Speaker 1: next show to bring audience to that on at least 484 00:22:54,080 --> 00:22:56,760 Speaker 1: on the premium side, isn't as valuable as it used 485 00:22:56,800 --> 00:22:59,120 Speaker 1: to be. We're not seeing the consumer going from eight 486 00:22:59,160 --> 00:23:01,760 Speaker 1: to nine like they've on the broadcast side, and so 487 00:23:01,840 --> 00:23:05,000 Speaker 1: we can play with links because it's time shifted, got it? 488 00:23:05,680 --> 00:23:08,719 Speaker 1: And you know, so Stars is becoming a global brand 489 00:23:08,960 --> 00:23:11,879 Speaker 1: and I'm just curious though as it goes to I 490 00:23:11,920 --> 00:23:15,400 Speaker 1: know there's the Arabia play and uh, some of these 491 00:23:15,400 --> 00:23:18,000 Speaker 1: other countries. I'm curious, is it is there a consistent 492 00:23:18,080 --> 00:23:20,879 Speaker 1: brand in every market They know it as Stars, which 493 00:23:21,119 --> 00:23:23,800 Speaker 1: I don't know if that's a word that makes has 494 00:23:23,880 --> 00:23:27,719 Speaker 1: much meaning in certain areas. So we are not becoming, 495 00:23:27,760 --> 00:23:31,320 Speaker 1: but we are a global brand. Um outside of the the US, 496 00:23:31,359 --> 00:23:33,840 Speaker 1: it starts play with the exception of two territories. One 497 00:23:33,920 --> 00:23:36,399 Speaker 1: is Canada, where it's just Stars because there's a lot 498 00:23:36,440 --> 00:23:38,560 Speaker 1: of media spillover and so we thought the benefit of 499 00:23:38,600 --> 00:23:40,600 Speaker 1: having some of that spillover for media was good to 500 00:23:40,680 --> 00:23:43,560 Speaker 1: keep the brand going. And we've seen wonderful traction with 501 00:23:43,600 --> 00:23:46,160 Speaker 1: our partner Bill there. I mean, some of our fastest 502 00:23:46,160 --> 00:23:49,240 Speaker 1: growing territories is in Canada right now. Because there is 503 00:23:49,320 --> 00:23:52,159 Speaker 1: that I think that brand spillover in the rest of 504 00:23:52,160 --> 00:23:54,200 Speaker 1: the world. It Stars play and Me and IT Stars 505 00:23:54,200 --> 00:23:57,399 Speaker 1: play Arabia and then in India will be a little different. 506 00:23:57,440 --> 00:23:58,960 Speaker 1: It will be lion to get play for the short 507 00:23:59,040 --> 00:24:03,200 Speaker 1: term because there's a out they're called Star and so um. 508 00:24:03,200 --> 00:24:05,720 Speaker 1: But as we continue to roll out and again we've 509 00:24:05,800 --> 00:24:08,280 Speaker 1: now been in four to get countries for two weeks, 510 00:24:08,840 --> 00:24:11,000 Speaker 1: as we get more local deals. So Spain is another 511 00:24:11,040 --> 00:24:13,800 Speaker 1: perfect example. Back to Spain where we're on four or 512 00:24:13,800 --> 00:24:17,320 Speaker 1: five distribution partners, we now can go off channel and 513 00:24:17,320 --> 00:24:21,040 Speaker 1: start to do outdoor and busses and advertise the brand 514 00:24:21,080 --> 00:24:23,080 Speaker 1: because we have wide enough distribution and you'll start to 515 00:24:23,080 --> 00:24:25,560 Speaker 1: see us do more of that. And you mentioned the 516 00:24:25,840 --> 00:24:30,720 Speaker 1: varying price points. Uh, is there varying models for how 517 00:24:31,280 --> 00:24:34,160 Speaker 1: Stars is accessed? Is it uh, something that you could 518 00:24:34,440 --> 00:24:37,960 Speaker 1: always and in any tor territory by independent of say 519 00:24:38,040 --> 00:24:42,560 Speaker 1: some sort of other tier of content. So ultimately we 520 00:24:42,920 --> 00:24:45,480 Speaker 1: look at you know, kind of two different three different 521 00:24:45,480 --> 00:24:48,280 Speaker 1: models per territory. There's the wholesale model, which looks just 522 00:24:48,359 --> 00:24:50,320 Speaker 1: like the United States. We're on the backs of Amazon 523 00:24:50,359 --> 00:24:52,639 Speaker 1: and Apple. Uh. There will be an app that we 524 00:24:52,680 --> 00:24:55,399 Speaker 1: will have available by the end of summer to deploy 525 00:24:55,400 --> 00:24:58,199 Speaker 1: around the world, which will be you know, language toggle, 526 00:24:58,320 --> 00:25:00,560 Speaker 1: GDB compliant everywhere in the world. If we look at 527 00:25:00,560 --> 00:25:03,400 Speaker 1: a territory and we see it's really growing fast, we'll 528 00:25:03,480 --> 00:25:06,080 Speaker 1: drop a director consumer app in like we've done domestically 529 00:25:06,440 --> 00:25:09,040 Speaker 1: and we'll harvest the market really quickly. If it's a 530 00:25:09,240 --> 00:25:11,960 Speaker 1: nice growing market, we may not decide to put that 531 00:25:12,040 --> 00:25:13,959 Speaker 1: in and we might just stay wholesale in that market. 532 00:25:14,119 --> 00:25:15,919 Speaker 1: And so you'll have the opera, the option or the 533 00:25:15,920 --> 00:25:17,720 Speaker 1: flexibility to go one of the two. And then we 534 00:25:17,720 --> 00:25:20,560 Speaker 1: have the venture model like Stars Play Arabia, where it's 535 00:25:20,880 --> 00:25:24,760 Speaker 1: wholesale retail, uh both. And so it just depends on 536 00:25:24,800 --> 00:25:27,320 Speaker 1: the marketplace and you learn different things as you try 537 00:25:27,400 --> 00:25:30,800 Speaker 1: different experiments. Yeah, the beautiful thing of what we've built 538 00:25:30,960 --> 00:25:33,840 Speaker 1: with the taking the domestic app around the world is 539 00:25:33,880 --> 00:25:36,080 Speaker 1: all the data that we talked about earlier, we will 540 00:25:36,119 --> 00:25:38,679 Speaker 1: now get for every territory we have our appen in 541 00:25:38,680 --> 00:25:40,919 Speaker 1: the world. That will all come back to Denver to 542 00:25:40,960 --> 00:25:43,600 Speaker 1: our analytics team here, and so the folks that have 543 00:25:43,680 --> 00:25:45,439 Speaker 1: done all the learning on the domestic side will not 544 00:25:45,440 --> 00:25:47,639 Speaker 1: get all that international data, and and we'll start to 545 00:25:47,640 --> 00:25:50,520 Speaker 1: see by territory and use the same set of metrics 546 00:25:50,520 --> 00:25:53,159 Speaker 1: and KPIs to determine what other content and what we 547 00:25:53,200 --> 00:25:55,639 Speaker 1: need to do in those territories as well. Well, it 548 00:25:55,720 --> 00:25:58,120 Speaker 1: sounds like you've got an interesting year ahead of you. Jeff, 549 00:25:58,200 --> 00:26:00,119 Speaker 1: wish you the best of luck and thanks for and 550 00:26:00,119 --> 00:26:02,040 Speaker 1: then talking about stars. Thanks for having me. I love 551 00:26:02,119 --> 00:26:04,600 Speaker 1: talking about the company. I'm excited about what we've built. 552 00:26:04,640 --> 00:26:08,000 Speaker 1: I'm excited about our execution to date, and we'll see 553 00:26:08,040 --> 00:26:10,520 Speaker 1: what happens in the next year. Sounds good. Thank you. 554 00:26:12,880 --> 00:26:16,119 Speaker 1: This has been another episode of Strictly Business. Tune in 555 00:26:16,160 --> 00:26:19,719 Speaker 1: next week for another helping of scintillating conversation with media 556 00:26:19,800 --> 00:26:22,720 Speaker 1: movers and shakers, and please make sure you subscribe to 557 00:26:22,760 --> 00:26:26,840 Speaker 1: the podcast to hear future episodes. Also leave a review 558 00:26:26,840 --> 00:26:29,840 Speaker 1: in Apple Podcast let us know how we're doing.