1 00:00:01,360 --> 00:00:06,160 Speaker 1: Congress is gonna hold a Senate antitrust hearing on Tuesday 2 00:00:06,680 --> 00:00:12,000 Speaker 1: focused on the proposed acquisition of Warner Brothers Discovery by Netflix. Now, 3 00:00:12,000 --> 00:00:14,319 Speaker 1: it's a blockbuster media deal, and that's why there's a 4 00:00:14,360 --> 00:00:19,279 Speaker 1: lot of attention around it. And it's roughly seventy plus billion, 5 00:00:19,360 --> 00:00:21,919 Speaker 1: all right. Lawmakers want to examine whether the deal could 6 00:00:21,920 --> 00:00:25,920 Speaker 1: reduce competition in the entertainment and streaming markets and if 7 00:00:25,920 --> 00:00:30,560 Speaker 1: there could be quote harm to consumers. Now you may 8 00:00:30,600 --> 00:00:32,839 Speaker 1: be saying, wait, what, how is this all happening? 9 00:00:32,840 --> 00:00:36,280 Speaker 2: What's this? Why is this happening? The world that we 10 00:00:36,320 --> 00:00:37,360 Speaker 2: are living in now. 11 00:00:37,200 --> 00:00:40,839 Speaker 1: Has changed drastically because of streaming and how we consume things. 12 00:00:41,040 --> 00:00:45,479 Speaker 1: So you're gonna have the Netflix at co CEO. He's 13 00:00:45,520 --> 00:00:48,160 Speaker 1: scheduled to testify before the Senate Judiciary Committee an anti 14 00:00:48,159 --> 00:00:51,200 Speaker 1: trust subcommittee, and answer lawmakers questions about the merger. 15 00:00:51,960 --> 00:00:53,400 Speaker 2: Then you're gonna have Warner brother. 16 00:00:53,240 --> 00:00:56,360 Speaker 1: Executives who are also expected to participate and explain their 17 00:00:56,440 --> 00:01:00,280 Speaker 1: perspective on the deal. And what lawmakers are focused on 18 00:01:00,400 --> 00:01:05,080 Speaker 1: is antitrust and competition. So to break some of this down, 19 00:01:05,360 --> 00:01:07,480 Speaker 1: I decided I'd call a man that deals with us 20 00:01:07,520 --> 00:01:12,840 Speaker 1: every day, Rich Greenfeld is a partner and TMT analysts 21 00:01:12,959 --> 00:01:16,600 Speaker 1: at light Shed Partners the GP, light Shed Ventures, Media 22 00:01:16,640 --> 00:01:19,800 Speaker 1: Futurists and cohs so the light Shed podcast and grab 23 00:01:19,880 --> 00:01:22,360 Speaker 1: it wherever you get your podcasts, and I decided we'd 24 00:01:22,440 --> 00:01:24,760 Speaker 1: have him on to talk about what this means for 25 00:01:24,840 --> 00:01:28,800 Speaker 1: the average American. So let's just start with the overall 26 00:01:28,840 --> 00:01:32,039 Speaker 1: bigger picture here, Rich and I appreciate you coming on. 27 00:01:32,760 --> 00:01:37,800 Speaker 1: The way that we consume things has changed drastically. YouTube 28 00:01:37,840 --> 00:01:41,840 Speaker 1: is a great example of that. It is an entertainment marketplace. 29 00:01:41,920 --> 00:01:46,000 Speaker 1: It's evolving right now into literally TV and streaming. You've 30 00:01:46,000 --> 00:01:49,240 Speaker 1: got social media platforms that are also vying for all 31 00:01:49,280 --> 00:01:51,840 Speaker 1: of our attention with reels and stories and shows that 32 00:01:51,840 --> 00:01:54,160 Speaker 1: are up there as well. So you look at the 33 00:01:54,160 --> 00:01:57,960 Speaker 1: current landscape, why is this relevant in context of the 34 00:01:58,000 --> 00:02:03,160 Speaker 1: acquisition with Warner brought there's discovery by Netflix and what 35 00:02:03,320 --> 00:02:05,280 Speaker 1: question should consumers be asking? 36 00:02:05,880 --> 00:02:08,160 Speaker 3: No, look that big from first of all, to keep 37 00:02:08,280 --> 00:02:11,359 Speaker 3: having me. It's a fascinating time in the media landscape. 38 00:02:11,400 --> 00:02:16,360 Speaker 3: I'm sure all of your listeners around the country are realizing. 39 00:02:17,320 --> 00:02:18,560 Speaker 4: The way we consume. 40 00:02:18,320 --> 00:02:21,600 Speaker 3: Entertainment has changed pretty dramatically. I mean the fact that 41 00:02:21,720 --> 00:02:24,960 Speaker 3: the single largest platform. You know, when you look at 42 00:02:25,320 --> 00:02:27,680 Speaker 3: what people are watching on a TV screen, so like 43 00:02:27,720 --> 00:02:30,639 Speaker 3: this is actually on the big screen TV in your 44 00:02:30,680 --> 00:02:35,160 Speaker 3: living room. The number one place or piece of content 45 00:02:35,240 --> 00:02:38,359 Speaker 3: that people are turning to on that big screen television 46 00:02:38,880 --> 00:02:40,440 Speaker 3: in twenty twenty sixes YouTube. 47 00:02:41,280 --> 00:02:43,400 Speaker 4: That's pretty crazy, Ben, because I think if we were to. 48 00:02:43,360 --> 00:02:46,800 Speaker 3: Go back twenty years ago, obviously that was zero, you know, 49 00:02:46,919 --> 00:02:49,640 Speaker 3: ten years ago, that was tiny. And the fact that 50 00:02:49,680 --> 00:02:53,400 Speaker 3: it is literally exploded really over the last five or 51 00:02:53,440 --> 00:02:56,440 Speaker 3: six years to become the dominant place. You know, there's 52 00:02:56,520 --> 00:03:03,320 Speaker 3: more times watching new to the TV than editing together. AVC, ESPN, 53 00:03:03,760 --> 00:03:07,920 Speaker 3: Disney plus Hulu is the entire Disney Armada. 54 00:03:08,320 --> 00:03:09,280 Speaker 4: YouTube is bigger. 55 00:03:09,919 --> 00:03:14,800 Speaker 3: And so that's a tremendous change in how can I 56 00:03:14,840 --> 00:03:18,200 Speaker 3: have three kids myself. I look at their media behavior. 57 00:03:18,639 --> 00:03:20,760 Speaker 3: I look at what they turn on when they get 58 00:03:20,760 --> 00:03:24,359 Speaker 3: home from school. Like the way that we are consuming 59 00:03:24,400 --> 00:03:27,800 Speaker 3: content has traumatically changed. And that's part of the challenge. 60 00:03:27,800 --> 00:03:31,280 Speaker 3: You know, I think what Congress on Tuesday and what 61 00:03:31,480 --> 00:03:34,560 Speaker 3: regulars were looking at this transaction to the Department of 62 00:03:34,720 --> 00:03:37,520 Speaker 3: Justice and even the court system if it ends up there. 63 00:03:38,240 --> 00:03:40,440 Speaker 3: The challenge that they all have to think about is 64 00:03:40,800 --> 00:03:41,560 Speaker 3: what is. 65 00:03:41,680 --> 00:03:42,720 Speaker 4: The relevant market? 66 00:03:43,200 --> 00:03:46,720 Speaker 3: Is the market streaming meaning preemium streaming, So a Netflix 67 00:03:46,840 --> 00:03:50,120 Speaker 3: or a Hulu is the market all of TV, which 68 00:03:50,160 --> 00:03:54,520 Speaker 3: includes broadcast TV, where the Grammys are tonight, where the 69 00:03:54,560 --> 00:03:56,960 Speaker 3: Oscars are going to be on YouTube eventually. So do 70 00:03:56,960 --> 00:03:59,920 Speaker 3: you include YouTube? You know, you can watch the NFL 71 00:04:00,080 --> 00:04:02,680 Speaker 3: now on YouTube. There was a game out of Brazil someday. 72 00:04:02,720 --> 00:04:06,600 Speaker 3: Ticket is on YouTube? So do you include streaming free television? 73 00:04:06,880 --> 00:04:10,520 Speaker 3: Do you include broadcast TV? Do you include ESPN and 74 00:04:10,560 --> 00:04:14,200 Speaker 3: all of able TV? Do you include things like TikTok 75 00:04:14,240 --> 00:04:16,480 Speaker 3: which are not really things you watch on the TV, 76 00:04:16,800 --> 00:04:20,520 Speaker 3: but are where you consume entertainment. So the challenge for 77 00:04:20,560 --> 00:04:24,800 Speaker 3: everyone is what is the actual market that we're analyzing. 78 00:04:24,480 --> 00:04:25,760 Speaker 4: Who competes with who? 79 00:04:26,560 --> 00:04:30,440 Speaker 3: Obviously there's going to be some people in Congress and 80 00:04:30,520 --> 00:04:33,840 Speaker 3: regulators who want to define this really narrowly, like this 81 00:04:34,000 --> 00:04:38,839 Speaker 3: is just Netflix versus Hulu or Netflix versus Amazon Prime Video. 82 00:04:39,480 --> 00:04:42,560 Speaker 3: That seems like a very primitive way or a very 83 00:04:43,200 --> 00:04:45,800 Speaker 3: overly simplified way of looking at it, and certainly not 84 00:04:45,839 --> 00:04:48,520 Speaker 3: the way your listeners think about their choices when they 85 00:04:48,560 --> 00:04:50,560 Speaker 3: get home from a hard day at work. I think 86 00:04:50,600 --> 00:04:54,520 Speaker 3: they're literally thinking about YouTube in the same breath that 87 00:04:54,520 --> 00:04:58,120 Speaker 3: they're thinking about turning on Netflix or CBS. They're all 88 00:04:58,160 --> 00:04:59,480 Speaker 3: competing for time. 89 00:05:00,279 --> 00:05:03,479 Speaker 1: Yeah, they're all commuting for time and eyeballs. Which look, 90 00:05:03,520 --> 00:05:05,719 Speaker 1: when I looked at this deal in general, my first 91 00:05:05,760 --> 00:05:09,800 Speaker 1: question was, Okay, are Americans gonna get hurt? 92 00:05:09,920 --> 00:05:11,080 Speaker 2: And I'm talking about jobs. 93 00:05:11,160 --> 00:05:13,640 Speaker 1: Are they gonna be lost if one in a big way, 94 00:05:13,720 --> 00:05:16,680 Speaker 1: if one side gets it or the other. I look 95 00:05:16,720 --> 00:05:19,159 Speaker 1: at Netflix, I'm like, all right, well that's American. They're 96 00:05:19,160 --> 00:05:21,080 Speaker 1: gonna do a lot in America. They also are in 97 00:05:21,120 --> 00:05:23,200 Speaker 1: a studio, but this would make them into one, which 98 00:05:23,200 --> 00:05:26,040 Speaker 1: would mean I would assume more job creation here. That 99 00:05:26,640 --> 00:05:30,240 Speaker 1: was obviously a big perk for me. There's also questions 100 00:05:30,240 --> 00:05:32,159 Speaker 1: that I've asked about, all right, well, where's the money 101 00:05:32,160 --> 00:05:34,640 Speaker 1: coming from to buy this, because this is a big 102 00:05:34,800 --> 00:05:37,000 Speaker 1: price tag. Talk to me and break that down a 103 00:05:37,040 --> 00:05:37,400 Speaker 1: little bit. 104 00:05:37,600 --> 00:05:40,520 Speaker 3: Well, okay, so John's interesting, right, because you know, if 105 00:05:40,520 --> 00:05:42,560 Speaker 3: you look, first of all, we should step back and say, 106 00:05:42,600 --> 00:05:45,240 Speaker 3: for your listeners, part of the reason we're having this 107 00:05:45,360 --> 00:05:48,479 Speaker 3: conversation is not there's not just one person that wants 108 00:05:48,520 --> 00:05:52,120 Speaker 3: to buy Warner Brothers in Netflix. There's another company, Paramount, 109 00:05:52,160 --> 00:05:55,520 Speaker 3: that's very interested and has made a hostile bid. After 110 00:05:55,600 --> 00:05:58,720 Speaker 3: their first or after the first several offers were rejected, 111 00:05:59,000 --> 00:06:01,200 Speaker 3: they are still trying to buy company. But if we're 112 00:06:01,240 --> 00:06:04,280 Speaker 3: simply going to look at job creation or even job 113 00:06:04,320 --> 00:06:08,039 Speaker 3: status flow, you know, Netflix is not in the theatrical business. 114 00:06:08,360 --> 00:06:10,799 Speaker 3: They are not in the syndication. They don't take TV 115 00:06:10,880 --> 00:06:14,200 Speaker 3: shows and license them around the world. As you said, 116 00:06:14,320 --> 00:06:16,880 Speaker 3: While they are building a studio, and they've been building 117 00:06:16,880 --> 00:06:19,640 Speaker 3: a studio for many years, they don't have a studio 118 00:06:20,120 --> 00:06:23,159 Speaker 3: the scale and the size of the studio, depth and 119 00:06:23,240 --> 00:06:25,960 Speaker 3: catalog that Warner Brothers does. And so I think if 120 00:06:26,000 --> 00:06:28,240 Speaker 3: you look at this, you can say that Netflix has 121 00:06:28,279 --> 00:06:30,919 Speaker 3: probably put more money into the entertainment business on an 122 00:06:30,960 --> 00:06:35,040 Speaker 3: manual basis securely into entertainment in any other company, not. 123 00:06:35,080 --> 00:06:36,680 Speaker 4: Just in America but around the world. 124 00:06:36,720 --> 00:06:38,800 Speaker 3: And so I think you can very much point to 125 00:06:38,800 --> 00:06:41,960 Speaker 3: this and say Netflix, from a job standpoint, will be 126 00:06:42,040 --> 00:06:45,359 Speaker 3: good for the entertainment industry. They are not looking to 127 00:06:46,040 --> 00:06:48,000 Speaker 3: This is not about cost cutting. I don't think any 128 00:06:48,080 --> 00:06:52,200 Speaker 3: part of the Netflix acquisition has been built around cost cutting. Now, 129 00:06:52,360 --> 00:06:55,800 Speaker 3: Paramount is also trying to buy Warner Brothers. They have 130 00:06:55,800 --> 00:06:59,200 Speaker 3: said they're going to keep both studios running fully independently. 131 00:06:59,839 --> 00:07:03,120 Speaker 3: I'll tell you they're also talking about, you know, billions 132 00:07:03,240 --> 00:07:06,440 Speaker 3: upon billions of dollars of cost savings. And I'll just 133 00:07:06,520 --> 00:07:09,600 Speaker 3: be honest with you. I remember back when Disney bought 134 00:07:09,640 --> 00:07:11,520 Speaker 3: Fox and the whole fact with you know, this was 135 00:07:11,560 --> 00:07:14,920 Speaker 3: one during the first Trump administration, if you remember, a 136 00:07:14,960 --> 00:07:17,320 Speaker 3: big part of that was we're going to keep Fox 137 00:07:17,360 --> 00:07:20,680 Speaker 3: fully independent. Well, i'll tell you now what is. It's 138 00:07:20,680 --> 00:07:23,560 Speaker 3: seven years later. Fox is a shell of itself, and 139 00:07:23,640 --> 00:07:27,239 Speaker 3: yes it does release some movies, but you've seen dramatically, 140 00:07:28,080 --> 00:07:31,760 Speaker 3: a dramatic strength and a tremendous amount of the overhead, 141 00:07:32,320 --> 00:07:35,720 Speaker 3: meaning jobs of the two studios was eliminated. Like there's 142 00:07:35,760 --> 00:07:39,760 Speaker 3: a tremendous amount of duplicative jobs between Paramount and Warner 143 00:07:39,760 --> 00:07:43,040 Speaker 3: Brothers that certainly doesn't exist in Netflix. Now there's a 144 00:07:43,080 --> 00:07:45,760 Speaker 3: Netflix skeptic out there that says, oh, Netflix won't release 145 00:07:45,840 --> 00:07:46,800 Speaker 3: movies and movie theaters. 146 00:07:46,800 --> 00:07:48,360 Speaker 4: They're just saying that to get approval. 147 00:07:49,120 --> 00:07:51,880 Speaker 3: You know, obviously there's no way to know what Netflix 148 00:07:51,960 --> 00:07:55,800 Speaker 3: ultimately does. But I will say they seem more committed 149 00:07:55,840 --> 00:07:59,000 Speaker 3: to being in the theatrical business than I ever expected 150 00:07:59,040 --> 00:08:00,880 Speaker 3: them to be. If you were to have asked me 151 00:08:00,880 --> 00:08:03,440 Speaker 3: about this transaction on your show. Six months ago, I 152 00:08:03,480 --> 00:08:05,920 Speaker 3: would have said there's no way they're going to do theatrical. 153 00:08:06,400 --> 00:08:09,200 Speaker 3: They seem pretty committed to getting into this theastical business, 154 00:08:09,240 --> 00:08:11,720 Speaker 3: which surprises me but is also to your point, good 155 00:08:11,720 --> 00:08:12,440 Speaker 3: for jobs. 156 00:08:12,720 --> 00:08:15,240 Speaker 1: For the next sixty seconds, can you hit pause on 157 00:08:15,280 --> 00:08:17,200 Speaker 1: your life and just think about this. 158 00:08:17,680 --> 00:08:20,960 Speaker 2: In communities around the world, millions. 159 00:08:20,320 --> 00:08:25,480 Speaker 1: Of children like Lucy faced the crushing weight of poverty, hunger, illness, 160 00:08:25,800 --> 00:08:29,920 Speaker 1: and a lack of opportunity dim their bright futures. But 161 00:08:30,040 --> 00:08:35,800 Speaker 1: through Compassion International and local churches, everything is changing. Lucy 162 00:08:35,960 --> 00:08:40,400 Speaker 1: receives nourishing food, vital medical care, and the chance to 163 00:08:40,559 --> 00:08:45,400 Speaker 1: go to school. She learns life skills, develops God given talents, 164 00:08:45,840 --> 00:08:49,559 Speaker 1: and builds a loving relationship with Jesus. It's a journey 165 00:08:49,559 --> 00:08:54,560 Speaker 1: from vulnerability to empowerment, and it's sparked literally by your love. 166 00:08:54,800 --> 00:08:59,920 Speaker 1: This transformation echoes far beyond Lucy, impacting her family, the community, 167 00:09:00,120 --> 00:09:02,880 Speaker 1: and shaping the future of her nation. And you can 168 00:09:02,920 --> 00:09:06,920 Speaker 1: make this profound difference right now. So join me in 169 00:09:07,040 --> 00:09:12,080 Speaker 1: sponsoring a child. Visit Compassion dot com today, you'll empower 170 00:09:12,200 --> 00:09:16,240 Speaker 1: life and change the world. That's Compassion dot com to 171 00:09:16,360 --> 00:09:19,960 Speaker 1: learn more, there is a concern I'm one of them, 172 00:09:20,160 --> 00:09:25,960 Speaker 1: about foreign influence, and I want American made movies and 173 00:09:26,360 --> 00:09:29,480 Speaker 1: entertainment to be made here without outside influence. A great 174 00:09:29,520 --> 00:09:31,880 Speaker 1: example of some of that outside influence we've witnessed was 175 00:09:32,400 --> 00:09:34,600 Speaker 1: uh when Todd Gren Maverick was not even allowed to 176 00:09:34,600 --> 00:09:38,120 Speaker 1: be shown over in China because of a patch that 177 00:09:38,240 --> 00:09:41,240 Speaker 1: was on his bomber jacket that that was in favor of, 178 00:09:41,320 --> 00:09:43,640 Speaker 1: you know, supporting Taiwan. Like, I see things like that, 179 00:09:43,679 --> 00:09:45,040 Speaker 1: and I'm like, all right, I want to make sure 180 00:09:45,080 --> 00:09:49,000 Speaker 1: those movies still get made without foreign influence. So break 181 00:09:49,040 --> 00:09:51,760 Speaker 1: that down for me. Where's the money coming from the 182 00:09:51,960 --> 00:09:54,000 Speaker 1: for for all this to get done? 183 00:09:54,280 --> 00:09:54,439 Speaker 4: Well? 184 00:09:54,480 --> 00:09:58,160 Speaker 3: I mean, look, you know, the reality is, you know, 185 00:09:58,160 --> 00:10:02,400 Speaker 3: when you look at private equity broadly defined, more and 186 00:10:02,480 --> 00:10:05,520 Speaker 3: more of it has certainly come from overseas. Certainly the 187 00:10:05,559 --> 00:10:10,120 Speaker 3: Middle East has been the huge driver of major transactions 188 00:10:10,160 --> 00:10:12,679 Speaker 3: in the US. I mean then, I don't know if 189 00:10:12,720 --> 00:10:15,240 Speaker 3: you're folks how much you focus on it. But EA, 190 00:10:15,440 --> 00:10:20,120 Speaker 3: which you know, makes big games, like you know, the 191 00:10:19,040 --> 00:10:23,880 Speaker 3: the games that your listeners play, that is being acquired, 192 00:10:24,080 --> 00:10:26,920 Speaker 3: you know, by sovereign wealth. You know, it's being acquired 193 00:10:26,960 --> 00:10:30,760 Speaker 3: by Saudi Arabia's you know, public investment fun so if 194 00:10:31,640 --> 00:10:35,640 Speaker 3: and so Middle East is not just targeting you know, Sollywood. 195 00:10:36,320 --> 00:10:40,440 Speaker 3: They are really looking across the entertainment ecosystem and making 196 00:10:40,559 --> 00:10:41,520 Speaker 3: big acquisitions. 197 00:10:41,559 --> 00:10:42,480 Speaker 4: Now, you know, we'll. 198 00:10:42,280 --> 00:10:45,800 Speaker 3: See, obviously, from a regulatory standpoint, whether all of these 199 00:10:45,800 --> 00:10:47,280 Speaker 3: things are quote unquote allowed. 200 00:10:48,360 --> 00:10:50,520 Speaker 4: You know, I think there are certainly going to be. 201 00:10:50,520 --> 00:10:53,520 Speaker 3: Challenges and questions of whether this is good and what's 202 00:10:53,520 --> 00:10:56,480 Speaker 3: the longer term impact. Obviously, we saw what happened to 203 00:10:56,520 --> 00:11:00,920 Speaker 3: Pitcock and how much the government did not want something that, 204 00:11:01,240 --> 00:11:03,400 Speaker 3: forget about even the spying, that there was a fear 205 00:11:03,520 --> 00:11:07,880 Speaker 3: that China could influence the algorithm, China could manipulate, and 206 00:11:07,880 --> 00:11:10,360 Speaker 3: whether it was true or not, there was enough fear 207 00:11:10,520 --> 00:11:15,000 Speaker 3: regulatory wise to force a sale of the algorithm and. 208 00:11:14,920 --> 00:11:17,679 Speaker 4: Of the US business to US investors. 209 00:11:17,679 --> 00:11:21,040 Speaker 3: And so this is clearly, in the government's mind, a 210 00:11:21,120 --> 00:11:25,199 Speaker 3: clear and present danger. We'll see whether what happens with TikTok, 211 00:11:25,480 --> 00:11:28,800 Speaker 3: what happened with EA. And then obviously there's no issue 212 00:11:28,800 --> 00:11:31,800 Speaker 3: with foreign money for the Netflix Warner Brothers transaction because 213 00:11:31,920 --> 00:11:35,240 Speaker 3: Netflix is obviously a US company. They are funding this 214 00:11:35,320 --> 00:11:41,440 Speaker 3: transaction entirely themselves. But the bidder against them paramount. While 215 00:11:41,480 --> 00:11:44,160 Speaker 3: Larry Nelson is putting up some of the capital from 216 00:11:44,200 --> 00:11:47,840 Speaker 3: his family's wealth, the majority of the actually of the 217 00:11:47,920 --> 00:11:51,480 Speaker 3: equity of the transaction is being financed from three sovereign 218 00:11:51,480 --> 00:11:53,400 Speaker 3: wealth funds in the Middle East. And while they are 219 00:11:53,480 --> 00:11:57,440 Speaker 3: quote unquote giving up all governance in control, they certainly 220 00:11:57,480 --> 00:12:01,080 Speaker 3: are investing the single largest dollar amount in this transaction. 221 00:12:01,240 --> 00:12:03,720 Speaker 3: And so look at you know, whether there is a 222 00:12:03,840 --> 00:12:06,680 Speaker 3: Siffiist regulatory concern TVD. 223 00:12:06,720 --> 00:12:08,000 Speaker 4: They've obviously said there is not. 224 00:12:08,920 --> 00:12:12,440 Speaker 3: I assume that will take time to actually ascertain if 225 00:12:12,840 --> 00:12:15,400 Speaker 3: in fact they end up winning the bidding for this transaction. 226 00:12:15,520 --> 00:12:18,720 Speaker 3: But look, I think you're actually raising a really important 227 00:12:18,720 --> 00:12:21,439 Speaker 3: point of forget about whether we're talking about Hollywood and 228 00:12:21,520 --> 00:12:26,160 Speaker 3: movie or TV broadenness to whether it's video games, things 229 00:12:26,240 --> 00:12:29,679 Speaker 3: like TikTok social media feeds. Do we want any of 230 00:12:29,720 --> 00:12:33,120 Speaker 3: these things that have such an impact on culture, especially 231 00:12:33,160 --> 00:12:35,520 Speaker 3: on young people and the culture they grow up on. 232 00:12:35,920 --> 00:12:38,960 Speaker 3: How much do they do we want outside foreign influence 233 00:12:39,440 --> 00:12:41,560 Speaker 3: in the control of these things. And it's a great 234 00:12:41,600 --> 00:12:43,520 Speaker 3: and important question that everyone should be asking. 235 00:12:43,960 --> 00:12:46,120 Speaker 1: Yeah, it's it's an important one, and you talk about 236 00:12:46,160 --> 00:12:48,200 Speaker 1: I mean, even with live golf and the PGA Tour. 237 00:12:48,240 --> 00:12:51,480 Speaker 1: We've seen that battle play out with outside influence be like, wait, 238 00:12:51,559 --> 00:12:53,840 Speaker 1: what do you why are there certain people trying to 239 00:12:53,840 --> 00:12:57,800 Speaker 1: throw so much money getting into American households and American 240 00:12:58,160 --> 00:13:00,480 Speaker 1: you know, different products or Europe. I mean, golf's a 241 00:13:00,520 --> 00:13:03,880 Speaker 1: great example of that. There's been a lot of debate 242 00:13:04,040 --> 00:13:06,320 Speaker 1: over that one, and it's certainly on this one as well. 243 00:13:06,559 --> 00:13:08,360 Speaker 1: Let me let me go back to the jobs question 244 00:13:08,440 --> 00:13:10,760 Speaker 1: and expand on that just a little bit. Paramount, by 245 00:13:10,760 --> 00:13:14,080 Speaker 1: the way, they're relatively small for a media company, uh 246 00:13:14,240 --> 00:13:16,760 Speaker 1: as was by the way, Skydance when it acquired it. 247 00:13:17,280 --> 00:13:20,360 Speaker 1: So is there a concern should there be a concern 248 00:13:20,400 --> 00:13:23,240 Speaker 1: about Paramount being able to operate a business that is 249 00:13:23,240 --> 00:13:27,720 Speaker 1: of Warner Brothers Discovery size, especially when they're already so leveraged. 250 00:13:28,160 --> 00:13:31,559 Speaker 3: Look, we have a we have We are very excited 251 00:13:31,559 --> 00:13:34,400 Speaker 3: by David Ellison coming in. Paramount has been a company 252 00:13:35,240 --> 00:13:37,120 Speaker 3: I don't know how long you follow sort of the 253 00:13:37,240 --> 00:13:40,880 Speaker 3: Redstone family struggles and the challenges that this has been 254 00:13:40,880 --> 00:13:43,880 Speaker 3: a trouble company for a long time and bringing in 255 00:13:43,960 --> 00:13:48,040 Speaker 3: someone like David Ellison, who not just has a tremendous 256 00:13:48,040 --> 00:13:53,480 Speaker 3: amount of family wealth, but also has a love of content, 257 00:13:54,000 --> 00:13:57,720 Speaker 3: really wants to build and leverage technology. This has been 258 00:13:57,800 --> 00:14:02,640 Speaker 3: great thing for Paramount, you know how a fresh start 259 00:14:02,720 --> 00:14:04,960 Speaker 3: to life. And I think you know you mentioned the 260 00:14:05,000 --> 00:14:08,360 Speaker 3: word leverage. The beauty of the Paramount's guidance transaction is 261 00:14:08,400 --> 00:14:11,280 Speaker 3: that leverage was brought down. They actually gave it a 262 00:14:11,320 --> 00:14:13,240 Speaker 3: point where they could be aggressive investors. I don't know 263 00:14:13,240 --> 00:14:15,640 Speaker 3: if you watched the UFC either of the last two 264 00:14:15,679 --> 00:14:17,720 Speaker 3: Saturday nights, but they went out and they spent a 265 00:14:17,720 --> 00:14:20,640 Speaker 3: billion dollars plus on the UFC rights. Like, they are 266 00:14:20,840 --> 00:14:24,440 Speaker 3: aggressively investing in their business. Really for the first time 267 00:14:24,480 --> 00:14:27,840 Speaker 3: in probably a decade. Look, you are seeing Paramount actually 268 00:14:27,920 --> 00:14:30,520 Speaker 3: in the you know, take control and actually be an 269 00:14:30,560 --> 00:14:31,600 Speaker 3: aggressive investor. 270 00:14:32,080 --> 00:14:32,760 Speaker 4: That is great. 271 00:14:33,280 --> 00:14:35,680 Speaker 3: The challenge with Warner Brothers is that they're then trying 272 00:14:35,720 --> 00:14:38,120 Speaker 3: to because they don't have enough cash because they are 273 00:14:38,160 --> 00:14:41,800 Speaker 3: a smaller company. As you point out, they're levering up aggressively. 274 00:14:42,120 --> 00:14:44,800 Speaker 3: And that's what worries me is I don't like in 275 00:14:44,840 --> 00:14:47,640 Speaker 3: a business of TV with so much is changing. We 276 00:14:47,680 --> 00:14:52,200 Speaker 3: talked about it at the top of the segment, how behavior, 277 00:14:52,240 --> 00:14:56,160 Speaker 3: consumer behavior is shifting. Levering up is not you know, 278 00:14:56,240 --> 00:14:58,520 Speaker 3: having a tremendous amount of debt is not really where 279 00:14:58,560 --> 00:15:01,400 Speaker 3: you want to be as a media being twenty twenty six, 280 00:15:01,480 --> 00:15:04,560 Speaker 3: and so I actually think Paramount would be better off 281 00:15:04,760 --> 00:15:08,520 Speaker 3: not buying Warner Brothers and simply investing in itself, you know, 282 00:15:08,600 --> 00:15:11,920 Speaker 3: if it doesn't have more capital from Larry directly. I 283 00:15:11,960 --> 00:15:14,480 Speaker 3: actually think going to solo paths would actually be a 284 00:15:14,520 --> 00:15:19,280 Speaker 3: better outcome for investors than over levering the company. But 285 00:15:19,520 --> 00:15:22,440 Speaker 3: you know, we'll see, obviously, you know, it all comes 286 00:15:22,480 --> 00:15:24,560 Speaker 3: down to money, and if they can raise enough money, 287 00:15:25,120 --> 00:15:27,360 Speaker 3: I am sure there is some price where they could 288 00:15:27,360 --> 00:15:30,400 Speaker 3: beat Netflix or Warner Brothers, but it's going to take 289 00:15:30,400 --> 00:15:33,920 Speaker 3: a lot of firepower to convince the board to switch 290 00:15:33,960 --> 00:15:35,560 Speaker 3: from Netflix over to Paramount. 291 00:15:36,000 --> 00:15:38,120 Speaker 1: Final question for you, if you could be at this 292 00:15:38,200 --> 00:15:41,640 Speaker 1: hearing on Tuesday, what's the number one question you'd want 293 00:15:41,640 --> 00:15:42,200 Speaker 1: to ask? 294 00:15:42,720 --> 00:15:46,400 Speaker 3: Well, I mean, I think it's funny. I think I 295 00:15:46,440 --> 00:15:49,720 Speaker 3: would literally start off by just saying to each senator 296 00:15:49,800 --> 00:15:53,520 Speaker 3: who's interviewing, I'd love for them to answer the question, 297 00:15:54,760 --> 00:15:59,280 Speaker 3: what is the number one use in terms of content 298 00:15:59,320 --> 00:16:01,840 Speaker 3: consumption of television? 299 00:16:02,120 --> 00:16:03,600 Speaker 4: Like do they even realize? 300 00:16:03,800 --> 00:16:07,960 Speaker 3: I'm actually curious how many senators in the hearing actually 301 00:16:08,000 --> 00:16:12,600 Speaker 3: realize that there's more time spent watching YouTube than everything 302 00:16:12,600 --> 00:16:16,240 Speaker 3: that the Walt Disney Company creates than everything that Netflix 303 00:16:16,280 --> 00:16:17,520 Speaker 3: and Amazon create, Like. 304 00:16:17,720 --> 00:16:20,640 Speaker 4: Are they aware of that? I think that would be 305 00:16:20,680 --> 00:16:21,160 Speaker 4: a big one. 306 00:16:21,200 --> 00:16:23,200 Speaker 3: And then the second piece bend that I think is 307 00:16:23,240 --> 00:16:26,040 Speaker 3: important is I do think I would question them on 308 00:16:26,480 --> 00:16:29,240 Speaker 3: are they aware of what happened with Disney Plus and Hulu? 309 00:16:29,240 --> 00:16:32,880 Speaker 3: Because remember Disney brought Fox and by getting Fox, Disney 310 00:16:32,880 --> 00:16:36,240 Speaker 3: got control of Hulu. And if you look at what's 311 00:16:36,240 --> 00:16:40,040 Speaker 3: happened with Disney Plus and Hulu, So right now, if 312 00:16:40,080 --> 00:16:44,040 Speaker 3: your listeners have either Disney Plus or Hulu individually, and 313 00:16:44,080 --> 00:16:45,920 Speaker 3: they kick it with ad so they take the cheapest 314 00:16:45,960 --> 00:16:49,800 Speaker 3: plan possible for Disney Plus, your listeners are paying eleven 315 00:16:49,880 --> 00:16:53,600 Speaker 3: ninety nine. For Hulu, your listeners are paying eleven ninety nine, 316 00:16:54,000 --> 00:16:57,080 Speaker 3: but the bundle of Disney Plus and Hulu is twelve 317 00:16:57,200 --> 00:17:00,880 Speaker 3: ninety nine. So when you think about the consumer value 318 00:17:01,280 --> 00:17:06,520 Speaker 3: of bundling and how much bundling channels creates really cost 319 00:17:06,560 --> 00:17:11,040 Speaker 3: savings for consumers, the Hulu Disney Plus a study is 320 00:17:11,080 --> 00:17:15,399 Speaker 3: a great example of how Netflix plus Hbo would be 321 00:17:15,480 --> 00:17:18,280 Speaker 3: a great thing for consumers because you may end up 322 00:17:18,320 --> 00:17:23,160 Speaker 3: with a lot more content for a very slight increase 323 00:17:23,240 --> 00:17:26,320 Speaker 3: in price relative to what you're paying for each of these. 324 00:17:26,200 --> 00:17:28,320 Speaker 2: Individually depends on the dollars. 325 00:17:28,400 --> 00:17:30,280 Speaker 1: Basically what you're saying, it's like, it's almost like a 326 00:17:30,320 --> 00:17:32,520 Speaker 1: buy one, get a huge. It's a bogo, right, you 327 00:17:32,560 --> 00:17:35,000 Speaker 1: buy one, you get one at dirt cheap er. 328 00:17:35,160 --> 00:17:36,879 Speaker 3: I mean, that's what it is with Disney and Hulu, 329 00:17:36,880 --> 00:17:39,399 Speaker 3: Like you're basically getting If you buy Disney Plus, you 330 00:17:39,440 --> 00:17:40,320 Speaker 3: get Hulu for a dollar. 331 00:17:40,320 --> 00:17:42,320 Speaker 4: If you get Hulu, you get Disney Plus for a dollar. 332 00:17:42,400 --> 00:17:45,879 Speaker 3: Like that is a pretty tremendous deal for consumers. I 333 00:17:45,920 --> 00:17:48,440 Speaker 3: don't know that that's what Hbo and Netflix. It would 334 00:17:48,480 --> 00:17:50,320 Speaker 3: be a good question to ask them to think about 335 00:17:50,440 --> 00:17:54,000 Speaker 3: how they're thinking about pricing the combined services. But if 336 00:17:54,040 --> 00:17:57,040 Speaker 3: you certainly look at Disney Plus and Hulu, the end 337 00:17:57,119 --> 00:18:00,000 Speaker 3: result has been a tremendous win for consumer. 338 00:18:00,320 --> 00:18:01,320 Speaker 4: There's no doubt about it. 339 00:18:01,600 --> 00:18:01,800 Speaker 2: Rich. 340 00:18:01,840 --> 00:18:04,800 Speaker 1: I appreciate your time, Rich Greenfield. Don't forget grab the 341 00:18:04,880 --> 00:18:08,440 Speaker 1: podcast the Light Shed podcasts. Wherever you get your podcasts, 342 00:18:08,440 --> 00:18:09,960 Speaker 1: they dive into a lot of this type of stuff. 343 00:18:10,000 --> 00:18:13,720 Speaker 1: I hope this helped answer a lot of questions. You've 344 00:18:13,960 --> 00:18:17,520 Speaker 1: heard me talking a lot about protecting American jobs and 345 00:18:17,680 --> 00:18:21,320 Speaker 1: also talking about there was the big hearing in Washington, 346 00:18:21,359 --> 00:18:24,600 Speaker 1: the dealt with Netflix and Warner Brothers and Discovery in 347 00:18:24,720 --> 00:18:28,720 Speaker 1: all of this, and I want to continue that conversation 348 00:18:28,880 --> 00:18:32,760 Speaker 1: now and really dive into what you can expect moving 349 00:18:32,800 --> 00:18:35,080 Speaker 1: forward and what's going to be happening. Join me now 350 00:18:35,240 --> 00:18:37,800 Speaker 1: talk about this is Cleete Williams. He's the chief Global 351 00:18:37,840 --> 00:18:41,679 Speaker 1: Affairs officer with Netflix. Include I appreciate you coming on 352 00:18:41,960 --> 00:18:44,080 Speaker 1: to talk even more about this. I want to get 353 00:18:44,080 --> 00:18:47,120 Speaker 1: into the American job aspect of this first and foremost, 354 00:18:47,200 --> 00:18:51,440 Speaker 1: because I don't think people realize, number one, how many 355 00:18:51,520 --> 00:18:56,520 Speaker 1: jobs are being created in this country and directly with Netflix, 356 00:18:56,560 --> 00:19:00,199 Speaker 1: but also indirectly with others that are making content that 357 00:19:00,240 --> 00:19:02,959 Speaker 1: you guys are then buying and that supports the development 358 00:19:03,000 --> 00:19:03,639 Speaker 1: of it as well. 359 00:19:03,840 --> 00:19:06,080 Speaker 5: Yeah. No, thanks so much. Done for having me on, 360 00:19:06,400 --> 00:19:09,720 Speaker 5: And obviously I'm I'm thrilled to talk about this because 361 00:19:09,760 --> 00:19:12,200 Speaker 5: this is one of the reasons I was so excited 362 00:19:12,200 --> 00:19:14,920 Speaker 5: to join Netflix in the first place, because Netflix is 363 00:19:14,960 --> 00:19:18,399 Speaker 5: a company that is really committed to growing investment and 364 00:19:18,440 --> 00:19:21,040 Speaker 5: growing jobs in the United States. And just to give 365 00:19:21,040 --> 00:19:23,520 Speaker 5: you a little bit of detail on that, you know, 366 00:19:23,600 --> 00:19:27,080 Speaker 5: Netflix is a company who has you know, we started 367 00:19:27,080 --> 00:19:31,600 Speaker 5: mailing DVDs around, we got into streaming, and recently we've 368 00:19:31,600 --> 00:19:34,800 Speaker 5: been getting into content. Right, it's really this classic American story, 369 00:19:34,880 --> 00:19:37,280 Speaker 5: something that only could have happened in the United States. 370 00:19:37,480 --> 00:19:40,160 Speaker 5: But as we've been getting into content, what we've done 371 00:19:40,720 --> 00:19:42,639 Speaker 5: is we've tripled our workforce in the last couple of 372 00:19:42,720 --> 00:19:46,240 Speaker 5: years and we are now filming in all fifty states 373 00:19:46,240 --> 00:19:48,679 Speaker 5: in the United States. We've got a total of twelve 374 00:19:48,760 --> 00:19:51,800 Speaker 5: hundred locations that we filmed in. And what this has done, 375 00:19:52,080 --> 00:19:55,000 Speaker 5: it's supported one hundred and forty thousand production jobs in 376 00:19:55,040 --> 00:19:58,479 Speaker 5: the country. It's supported two hundred and twenty five billion 377 00:19:58,920 --> 00:20:02,160 Speaker 5: of economic output. And we're trying to do even more. 378 00:20:02,240 --> 00:20:05,240 Speaker 5: You know, we're investing more into content as others in 379 00:20:05,280 --> 00:20:07,800 Speaker 5: the industry are pulling back. And one of the really 380 00:20:07,800 --> 00:20:11,680 Speaker 5: exciting stories is up in New Jersey where the Fort 381 00:20:11,720 --> 00:20:14,520 Speaker 5: Monmouth base used to be. This base was closed down 382 00:20:15,119 --> 00:20:17,720 Speaker 5: and now we're building a world class studio there. One 383 00:20:17,760 --> 00:20:20,120 Speaker 5: point two billion dollars into that economy. And so look, 384 00:20:20,119 --> 00:20:23,240 Speaker 5: it's a really exciting story for what's going on at Netflix. 385 00:20:23,560 --> 00:20:25,760 Speaker 1: You know, for people that again and I go back 386 00:20:25,760 --> 00:20:28,800 Speaker 1: to this is for me America first, American jobs. 387 00:20:28,880 --> 00:20:31,040 Speaker 2: I also wrote an op at Fox News dot Com. 388 00:20:31,040 --> 00:20:32,760 Speaker 1: You can grab it there talking about why I believe 389 00:20:32,760 --> 00:20:36,160 Speaker 1: that Ron Reagan would be in favor of this merger 390 00:20:37,160 --> 00:20:41,520 Speaker 1: between Netflix and Warner Brothers because of it doing so 391 00:20:41,640 --> 00:20:45,240 Speaker 1: much to keep production and American interests first and foremost. 392 00:20:45,520 --> 00:20:49,880 Speaker 1: He understood the value of exporting American ideals and American 393 00:20:49,920 --> 00:20:53,000 Speaker 1: movies is an amazing way to have influence. 394 00:20:52,640 --> 00:20:53,639 Speaker 2: All over the world. 395 00:20:54,320 --> 00:20:56,160 Speaker 1: You look at the other side of this, so people 396 00:20:56,280 --> 00:20:59,879 Speaker 1: understand just the context that there has been a re 397 00:21:00,080 --> 00:21:06,440 Speaker 1: pedd hostile attempt to acquire from Paramount and skuideiance. What 398 00:21:06,480 --> 00:21:09,680 Speaker 1: worries me about that side is a lot of outside of. 399 00:21:09,640 --> 00:21:11,359 Speaker 2: The US money that can come in. 400 00:21:11,680 --> 00:21:14,480 Speaker 1: I as a as a look, I want America to 401 00:21:14,520 --> 00:21:16,920 Speaker 1: be shown in the best slide. I don't want there 402 00:21:16,920 --> 00:21:20,720 Speaker 1: to be outside influenced. I worry about that. And you guys, 403 00:21:20,880 --> 00:21:23,960 Speaker 1: to be very clear, your core is the United States 404 00:21:23,960 --> 00:21:26,159 Speaker 1: of America. I want to make sure everybody understands that. 405 00:21:26,440 --> 00:21:28,800 Speaker 5: Yeah know, look, that's absolutely right. And you know I 406 00:21:28,880 --> 00:21:31,800 Speaker 5: just mentioned this studio in New Jersey. What we're hoping 407 00:21:31,800 --> 00:21:34,040 Speaker 5: to do with this studio in New Jersey is do 408 00:21:34,080 --> 00:21:36,600 Speaker 5: a bunch of filming in the United States that would 409 00:21:36,600 --> 00:21:39,399 Speaker 5: have otherwise been done in other places like the United Kingdom. 410 00:21:39,880 --> 00:21:44,280 Speaker 5: And so this really is about strengthening the American industry, 411 00:21:44,480 --> 00:21:47,080 Speaker 5: making sure that America remains number one in the world 412 00:21:47,920 --> 00:21:53,119 Speaker 5: for production. And look, you brought out the situation with Paramount, 413 00:21:53,640 --> 00:21:56,239 Speaker 5: who is making the hostile bid, And I think one 414 00:21:56,280 --> 00:21:58,199 Speaker 5: of the points that you raise in some of the 415 00:21:58,200 --> 00:22:01,159 Speaker 5: things that you've written is is that there's really a 416 00:22:01,200 --> 00:22:04,200 Speaker 5: clear contrast here, right. I mean, there's the job story 417 00:22:04,720 --> 00:22:07,200 Speaker 5: and the fact that we've been creating jobs and they've 418 00:22:07,240 --> 00:22:09,880 Speaker 5: been cutting them. Right, they had three and thirty five 419 00:22:09,960 --> 00:22:13,600 Speaker 5: hundred jobs cut with their Skydance merger. Just yesterday they 420 00:22:13,640 --> 00:22:16,640 Speaker 5: announced they were going to reduce their workforce at CBS 421 00:22:16,680 --> 00:22:20,600 Speaker 5: by fifteen percent. They've they've identified six billion in synergies, 422 00:22:20,600 --> 00:22:22,840 Speaker 5: which is code for job cuts. You know, that's actually 423 00:22:22,840 --> 00:22:24,680 Speaker 5: probably going to be higher because this is the largest 424 00:22:24,760 --> 00:22:27,680 Speaker 5: leverage buyout in history. But you know, speaking of the 425 00:22:27,760 --> 00:22:30,800 Speaker 5: leverage buyout and speaking of the financing, here's where here's 426 00:22:30,840 --> 00:22:32,800 Speaker 5: a big difference, and I think you know you will 427 00:22:32,800 --> 00:22:36,960 Speaker 5: find very important, which is Netflix is an American deal 428 00:22:37,119 --> 00:22:40,760 Speaker 5: with American dollars. Yeah, and the Paramount deal. Paramount has 429 00:22:40,760 --> 00:22:43,400 Speaker 5: more equity from the Middle East than the United States. 430 00:22:43,560 --> 00:22:45,480 Speaker 1: Hold on to say that again, because that's what that 431 00:22:45,600 --> 00:22:47,760 Speaker 1: is my biggest warning. And when I was looking at this, 432 00:22:48,480 --> 00:22:51,080 Speaker 1: I was I was one of those full disclosure. I've 433 00:22:51,119 --> 00:22:54,560 Speaker 1: I've been critical of Netflix in the past on certain 434 00:22:54,560 --> 00:22:56,359 Speaker 1: things I did, I did, I like or don't like you. 435 00:22:56,440 --> 00:22:57,040 Speaker 2: It's a big company. 436 00:22:57,119 --> 00:22:59,800 Speaker 1: That would be normal, but my big red flag here 437 00:22:59,840 --> 00:23:04,399 Speaker 1: with hold on a second, we're talking about major influence 438 00:23:04,720 --> 00:23:09,160 Speaker 1: that would come into a collection flash studio and production 439 00:23:09,560 --> 00:23:11,879 Speaker 1: from the Middle East. I do not like that or 440 00:23:11,880 --> 00:23:13,160 Speaker 1: feel comfortable with it at all. 441 00:23:14,560 --> 00:23:17,160 Speaker 5: No, I mean I understand the concerns you're raising, right, 442 00:23:17,200 --> 00:23:20,199 Speaker 5: I think you've written about that very eloquently, and just 443 00:23:20,280 --> 00:23:24,159 Speaker 5: the difference here American deal with American dollars versus something 444 00:23:24,200 --> 00:23:27,560 Speaker 5: that has the majority of its equity from the Middle East. 445 00:23:28,480 --> 00:23:31,080 Speaker 5: And look, there are concerns about what that would do 446 00:23:31,200 --> 00:23:34,159 Speaker 5: on influence and what it would do for American soft power. 447 00:23:34,520 --> 00:23:36,480 Speaker 5: But I think you know, the interesting thing that a 448 00:23:36,480 --> 00:23:39,040 Speaker 5: lot of people haven't focused on is that this also 449 00:23:39,080 --> 00:23:42,480 Speaker 5: causes regulatory problems for Paramount that we don't have. Right 450 00:23:42,520 --> 00:23:45,000 Speaker 5: And in the US, you've got the Trophy Department and 451 00:23:45,040 --> 00:23:48,119 Speaker 5: their scithious review process, you know, which is going to 452 00:23:48,160 --> 00:23:51,639 Speaker 5: have to look into whether this is you know, problematic 453 00:23:51,680 --> 00:23:55,000 Speaker 5: foreign control. You've also got the European Union, you know, 454 00:23:55,040 --> 00:23:57,879 Speaker 5: who may be concerned about you know, Middle East ownership 455 00:23:57,920 --> 00:24:00,240 Speaker 5: of CNN and some of these other networks. And so, 456 00:24:00,600 --> 00:24:03,280 Speaker 5: you know, I think that's a clear contrast between these 457 00:24:03,280 --> 00:24:04,000 Speaker 5: two deals. 458 00:24:04,560 --> 00:24:07,239 Speaker 1: Let's also talk about some of the misconceptions and we 459 00:24:07,320 --> 00:24:09,480 Speaker 1: saw I think some of this come out and that 460 00:24:09,600 --> 00:24:13,439 Speaker 1: antitrust hearing that was in Washington, d C. There are 461 00:24:13,480 --> 00:24:15,760 Speaker 1: a lot of people that just assume that Netflix is 462 00:24:15,800 --> 00:24:18,040 Speaker 1: a company that has a massive studio and you guys 463 00:24:18,080 --> 00:24:21,359 Speaker 1: are creating a lot of this content in your own studios. 464 00:24:22,000 --> 00:24:25,320 Speaker 1: That is not the case at all. That is exactly 465 00:24:25,359 --> 00:24:29,240 Speaker 1: the reason why this paramount Warner Brothers Discovery deal is 466 00:24:29,680 --> 00:24:32,280 Speaker 1: what you guys are wanting to do, because you do 467 00:24:32,359 --> 00:24:33,720 Speaker 1: want to get into that as well. 468 00:24:34,680 --> 00:24:37,920 Speaker 5: Yeah, that's absolutely right, and the contrast here is clear 469 00:24:37,960 --> 00:24:41,080 Speaker 5: as well. You know, the Netflix deal is primarily a 470 00:24:41,160 --> 00:24:44,000 Speaker 5: vertical merger, and what I mean by that is that, 471 00:24:44,080 --> 00:24:46,879 Speaker 5: you know, we're proud of what we've done in the 472 00:24:47,400 --> 00:24:49,879 Speaker 5: content production business in the last couple of years, but 473 00:24:49,920 --> 00:24:52,479 Speaker 5: we've only been making our own stuff for around a decade. 474 00:24:53,040 --> 00:24:56,440 Speaker 5: And you know, you contrast that with Warner Brothers, who 475 00:24:56,520 --> 00:25:00,880 Speaker 5: has one hundred years of production in this business, who 476 00:25:00,880 --> 00:25:05,119 Speaker 5: has all that iconic intellectual property, and so this is complementary. 477 00:25:05,119 --> 00:25:07,040 Speaker 5: We're going to be able to bring that into the 478 00:25:07,119 --> 00:25:11,080 Speaker 5: network Netflix platform. You know, you also have this legacy 479 00:25:11,119 --> 00:25:16,280 Speaker 5: studio out in Hollywood that that Warner Brothers has. You know, 480 00:25:16,320 --> 00:25:19,159 Speaker 5: we're building this new, world class studio in New Jersey, 481 00:25:19,160 --> 00:25:20,720 Speaker 5: but we haven't had that kind of thing yet, so 482 00:25:20,760 --> 00:25:24,720 Speaker 5: we're bringing that together. Then there's this theatrical distribution business, 483 00:25:24,840 --> 00:25:27,400 Speaker 5: another area where we have not been active, and we're 484 00:25:27,400 --> 00:25:29,280 Speaker 5: going to bring that together. And so that's a vertical 485 00:25:29,280 --> 00:25:32,320 Speaker 5: merger with complementary assets where we're going to be able 486 00:25:32,359 --> 00:25:35,240 Speaker 5: to get more content to consumers for less and we're 487 00:25:35,240 --> 00:25:37,760 Speaker 5: going to keep all these major players and major buyers 488 00:25:37,800 --> 00:25:40,880 Speaker 5: in the market. And then the Paramount deal is your 489 00:25:40,920 --> 00:25:44,600 Speaker 5: classic horizontal merger with the Noah's Ark problem. You know, 490 00:25:44,600 --> 00:25:46,960 Speaker 5: they're going to have two of everything, right, they already 491 00:25:47,040 --> 00:25:50,280 Speaker 5: have one of those big legacy studios out in Hollywood, 492 00:25:50,840 --> 00:25:53,480 Speaker 5: so they're going to have to cut one there. Already 493 00:25:53,520 --> 00:25:56,800 Speaker 5: have a major theatrical distribution business, so that's going to 494 00:25:56,880 --> 00:25:59,600 Speaker 5: get cut and consolidated. And then look, you can also 495 00:25:59,640 --> 00:26:01,520 Speaker 5: look at the news and the sports and all these 496 00:26:01,560 --> 00:26:03,440 Speaker 5: other things where they're going to double up as well. 497 00:26:03,800 --> 00:26:05,439 Speaker 5: And so I think, you know, if you look at 498 00:26:05,480 --> 00:26:09,680 Speaker 5: these vertical mergers which have traditionally been treated very favorably 499 00:26:09,720 --> 00:26:13,399 Speaker 5: by competition authorities versus a horizontal merger which traditionally has 500 00:26:13,440 --> 00:26:16,560 Speaker 5: not been Again, I think on the regulatory front, it's 501 00:26:16,600 --> 00:26:19,800 Speaker 5: pretty clear, you know that the Netflix deal has a 502 00:26:19,840 --> 00:26:22,600 Speaker 5: clearer path, and I do think that's a misconception that 503 00:26:22,640 --> 00:26:24,080 Speaker 5: the other side has tried to perpetuate. 504 00:26:24,600 --> 00:26:25,639 Speaker 2: Let me ask you one question. 505 00:26:25,680 --> 00:26:27,720 Speaker 1: It's a concern that I and many others have had 506 00:26:27,760 --> 00:26:32,080 Speaker 1: that are conservatives, and that is that Netflix has been 507 00:26:32,080 --> 00:26:35,480 Speaker 1: seen through many conservatives as an advocate for more of 508 00:26:35,480 --> 00:26:38,679 Speaker 1: the left and woke type programming. Without going into you know, 509 00:26:39,119 --> 00:26:42,880 Speaker 1: exact details, in general, that has been a major concern 510 00:26:43,280 --> 00:26:45,560 Speaker 1: and there has been a real concern that, look, if 511 00:26:45,840 --> 00:26:48,399 Speaker 1: you guys get even more powerful, bigger than what you 512 00:26:48,440 --> 00:26:51,320 Speaker 1: are now, that that is going to explode in some way. 513 00:26:51,400 --> 00:26:55,520 Speaker 1: And then the choice of hey are our conservative stories, 514 00:26:55,560 --> 00:26:58,840 Speaker 1: our traditional stories are historically traditional you know, context stories 515 00:26:59,200 --> 00:27:02,359 Speaker 1: not going to be told because of quote propaganda. How 516 00:27:02,840 --> 00:27:04,919 Speaker 1: would you answer and respond to that? Because that is 517 00:27:04,960 --> 00:27:07,919 Speaker 1: a question. At Center, Holly talked about the hearing some 518 00:27:08,000 --> 00:27:09,200 Speaker 1: of those clips people saw. 519 00:27:09,320 --> 00:27:10,840 Speaker 2: I think it's a fair question ask. 520 00:27:11,080 --> 00:27:14,160 Speaker 5: Well, Look, I appreciate you asking it, and I appreciate 521 00:27:14,200 --> 00:27:16,520 Speaker 5: the opportunity to clear up what I think is a 522 00:27:16,560 --> 00:27:20,520 Speaker 5: misconception here. Look, our mission at Netflix is to entertain 523 00:27:20,560 --> 00:27:23,359 Speaker 5: the world and to run a profitable business. And in 524 00:27:23,440 --> 00:27:25,600 Speaker 5: order to do that, you know, we need to provide 525 00:27:25,800 --> 00:27:30,200 Speaker 5: something for everyone all across the spectrum, whether you're left, right, center, 526 00:27:30,480 --> 00:27:32,640 Speaker 5: And look at the content we have. Right, We've got 527 00:27:32,680 --> 00:27:36,160 Speaker 5: action movies, We've got rom coms, we got faith based shows, 528 00:27:36,440 --> 00:27:40,040 Speaker 5: we've got documentaries about the military, westerns, you name it. 529 00:27:40,840 --> 00:27:42,800 Speaker 5: And look, one of my favorite shows, not one that 530 00:27:42,800 --> 00:27:45,120 Speaker 5: you would traditionally think of as conservative, but I think 531 00:27:45,119 --> 00:27:48,760 Speaker 5: it really is, is Cobra Kai, Right, And the main 532 00:27:48,840 --> 00:27:51,040 Speaker 5: character there, Johnny Lawrence, not only does he kick bud 533 00:27:51,040 --> 00:27:54,040 Speaker 5: at Karate, but this is a blue collar guy who's 534 00:27:54,080 --> 00:27:57,760 Speaker 5: set up that American has gotten too soft, too politically correct, 535 00:27:58,000 --> 00:28:00,560 Speaker 5: and throughout the show he pushes back on that. And 536 00:28:01,000 --> 00:28:04,240 Speaker 5: I think it's great Look, I'm a conservative. I worked 537 00:28:04,240 --> 00:28:07,600 Speaker 5: in the Trump White House, and I'm look, Ben, I'm 538 00:28:07,600 --> 00:28:09,920 Speaker 5: not going to deny that there are shows I don't like, right, 539 00:28:10,359 --> 00:28:12,520 Speaker 5: but I can just turn those off, right, I can 540 00:28:12,600 --> 00:28:14,800 Speaker 5: just put on something else, because we have a lot 541 00:28:14,840 --> 00:28:17,719 Speaker 5: of content on our platform. And I will say, as 542 00:28:17,760 --> 00:28:21,159 Speaker 5: a conservative, what I'm proud of at Netflix is that 543 00:28:21,240 --> 00:28:23,520 Speaker 5: we stand up for the First Amendment and we stand 544 00:28:23,600 --> 00:28:26,359 Speaker 5: up for free speech. And there have been times in 545 00:28:26,400 --> 00:28:29,720 Speaker 5: the past where we have had folks on the left 546 00:28:30,119 --> 00:28:32,280 Speaker 5: who have wanted to cancel us and to cancel our 547 00:28:32,320 --> 00:28:35,080 Speaker 5: programming because it was offensive to them. There was a 548 00:28:35,160 --> 00:28:37,360 Speaker 5: very famous example a couple of years ago with Dave 549 00:28:37,440 --> 00:28:40,880 Speaker 5: Chappelle made some jokes that they didn't like, and we 550 00:28:40,920 --> 00:28:42,440 Speaker 5: stood up for it and we said, no, we're not 551 00:28:42,440 --> 00:28:45,120 Speaker 5: going to pull that down. We don't censor. And look, 552 00:28:45,160 --> 00:28:47,240 Speaker 5: that's the same reason we're not in China. You know, 553 00:28:47,240 --> 00:28:48,960 Speaker 5: we're not in China. We're not going to do that. 554 00:28:49,680 --> 00:28:51,959 Speaker 1: Yeah, it's a great point and we're going to keep 555 00:28:52,000 --> 00:28:55,160 Speaker 1: following this. Clett Williams, I appreciate you so much coming 556 00:28:55,200 --> 00:28:58,440 Speaker 1: on chief Global Affairs Officer with Netflix, and I appreciate 557 00:28:58,480 --> 00:29:00,040 Speaker 1: you answering that question what you did. I also so 558 00:29:00,040 --> 00:29:01,640 Speaker 1: I think it's great to know that there are people 559 00:29:01,680 --> 00:29:02,840 Speaker 1: like you that, by the way, came out of the 560 00:29:02,840 --> 00:29:05,760 Speaker 1: Trump White House that are now high up at Netflix. 561 00:29:06,080 --> 00:29:08,120 Speaker 1: I find that comforting to know I have an ally 562 00:29:08,320 --> 00:29:10,120 Speaker 1: or a friend there that's looking out for my interests, 563 00:29:10,160 --> 00:29:12,160 Speaker 1: in my family's interests as well. So I appreciate you 564 00:29:12,200 --> 00:29:14,719 Speaker 1: coming on and talking about that. Don't forget. Share this 565 00:29:14,800 --> 00:29:18,560 Speaker 1: podcast with your family and friends, share it on social media, please, 566 00:29:18,840 --> 00:29:20,720 Speaker 1: and I'll see you back here tomorrow.