WEBVTT - Bloomberg Tech Screentime Special 0:00:02.600 --> 0:00:04.280 Bloomberg Audio Studios. 0:00:04.740 --> 0:00:05.440 Podcasts. 0:00:05.760 --> 0:00:07.120 Radio. News. 0:00:12.920 --> 0:00:16.460 Bloomberg Tech is live from the heart of Silicon Valley 0:00:16.980 --> 0:00:19.120 with Ed Ludlow in San Francisco. 0:00:23.710 --> 0:00:26.310 Welcome to a special edition of Bloomberg Tech, live from 0:00:26.329 --> 0:00:29.190 Bloomberg Screen Time in Los Angeles. Coming up this hour, 0:00:29.450 --> 0:00:31.490 we'll bring you conversations with some of the biggest names 0:00:31.530 --> 0:00:35.060 in the entertainment industry. And of course, AI is front 0:00:35.100 --> 0:00:37.919 and center. We'll be speaking with entrepreneurs and leaders across 0:00:38.000 --> 0:00:41.140 a changing tech and media landscape. I want to get 0:00:41.220 --> 0:00:45.740 to the big entertainment story today, which is Paramount's $ 110 0:00:44.960 --> 0:00:46.300 billion Warner Bros. 0:00:46.320 --> 0:00:46.520 Deal. 0:00:46.560 --> 0:00:49.550 It is cleared to move forward. A federal judge has 0:00:49.590 --> 0:00:52.670 approved a settlement with a dozen states, and the companies 0:00:52.690 --> 0:00:54.750 now expect the merger to close October 6th. 0:00:55.250 --> 0:00:55.750 Timely. 0:00:56.130 --> 0:00:59.670 Bloomberg's Lucas Shaw leads our media and entertainment coverage, leads 0:00:59.710 --> 0:01:02.350 the Screen Time team, and we're here at Screen Time, 0:01:02.390 --> 0:01:05.190 but that was a big headline. Let's start with, this 0:01:05.250 --> 0:01:05.610 is cleared. 0:01:05.970 --> 0:01:06.669 It's going to close. 0:01:06.810 --> 0:01:09.990 Yeah, we knew it was going to close as soon 0:01:10.190 --> 0:01:12.940 as the state AGs and the Writers Guild of America 0:01:13.240 --> 0:01:15.580 settled their lawsuit saying, you know, we feel like you 0:01:15.620 --> 0:01:19.280 have agreed to certain conditions that make us satisfied. And 0:01:19.520 --> 0:01:22.440 David Ellison, the chairman and CEO of Paramount Skydance, who 0:01:22.480 --> 0:01:24.560 will be the chairman and CEO of the combined company, 0:01:24.640 --> 0:01:28.440 is wasting no time making changes with staffing and leadership, 0:01:28.480 --> 0:01:31.070 and I expect we'll just see news pretty much every 0:01:31.110 --> 0:01:32.330 day over the next couple weeks. 0:01:32.490 --> 0:01:35.170 There are also sort of details coming out now about 0:01:35.230 --> 0:01:38.770 what that new company looks like. What does it look 0:01:38.810 --> 0:01:39.789 like on paper? 0:01:39.890 --> 0:01:40.910 Well, we know a couple things. 0:01:41.090 --> 0:01:43.090 One is that Cindy Holland, who's been the head of 0:01:43.110 --> 0:01:45.860 streaming for Paramount Skydance and who had previously been a 0:01:45.980 --> 0:01:47.100 top executive at Netflix. 0:01:47.520 --> 0:01:48.040 has left. 0:01:48.220 --> 0:01:51.600 And everybody believes that that means that Casey Bloys, who 0:01:51.620 --> 0:01:53.840 will be speaking at this conference later today, will be 0:01:53.880 --> 0:01:56.400 in charge of streaming. That is something that we have 0:01:56.420 --> 0:01:58.870 reported and something that I think others have reported as well. 0:01:59.790 --> 0:02:00.830 The big news also. 0:02:00.630 --> 0:02:03.090 Yesterday was that they announced Enon Kreitz, who has been 0:02:03.130 --> 0:02:06.390 the CEO of Mattel, is joining as the co-CEO of 0:02:06.410 --> 0:02:08.590 the combined company. A little weird because David Ellison is 0:02:08.650 --> 0:02:11.110 the CEO, but you can think of Enon as the 0:02:11.150 --> 0:02:13.440 person who's going to come in and really run things 0:02:13.460 --> 0:02:16.459 day to day cut a lot of cost restructure like 0:02:16.580 --> 0:02:18.739 all the nasty stuff that david ellison doesn't want to 0:02:18.760 --> 0:02:21.340 be kind of stuck with is enon's job. 0:02:21.260 --> 0:02:23.200 Okay so last night we kicked things off here in 0:02:23.320 --> 0:02:27.410 in hollywood with a conversation with netflix co-ceo ted sarandos 0:02:27.450 --> 0:02:30.889 and obviously it's in the past now but the opportunity 0:02:30.930 --> 0:02:33.769 that netflix had seen with warner brothers discovery you talked 0:02:33.790 --> 0:02:35.709 about that quite a lot let's just listen to a 0:02:35.730 --> 0:02:36.149 little bit. 0:02:36.090 --> 0:02:36.310 Of it. 0:02:38.060 --> 0:02:42.250 The plan was solid um i think we we and 0:02:42.810 --> 0:02:44.510 we won the deal at some point, so we priced 0:02:44.560 --> 0:02:48.580 it right. At our scale, that was the top price 0:02:48.639 --> 0:02:51.160 point where I thought we could return value to our 0:02:51.220 --> 0:02:54.660 shareholders with that asset. Any more than that, I thought 0:02:54.680 --> 0:02:56.220 we'd be taking it into negative territory. 0:02:59.450 --> 0:03:02.450 I think macro point, now that it is Paramount Skydance 0:03:02.510 --> 0:03:05.269 and Warner Brothers Discovery, the landscape's shifting a bit. And 0:03:05.650 --> 0:03:08.970 Ted Sarandos and you talked about how Netflix kind of 0:03:09.030 --> 0:03:10.680 is going to respond, how they're going to get growth 0:03:10.720 --> 0:03:11.260 in the future. 0:03:11.560 --> 0:03:14.940 It's tricky for him because... I think prior. 0:03:14.600 --> 0:03:18.139 To Netflix going after that deal, they were seen as 0:03:18.240 --> 0:03:21.520 the biggest entertainment company on the block and just all 0:03:21.540 --> 0:03:24.690 things were going very well, it seemed for them. And 0:03:24.950 --> 0:03:29.230 their pursuit of Warner Brothers Discovery, rightly or wrongly, triggered 0:03:29.430 --> 0:03:32.430 a lot of skepticism because people started to wonder, why 0:03:32.450 --> 0:03:34.050 are they doing this? Ted talked about it last night. 0:03:34.070 --> 0:03:36.210 It sort of changed the narrative for the company. And 0:03:36.250 --> 0:03:38.240 he says he's okay with that. It was a deal 0:03:38.250 --> 0:03:39.780 that was worth going for, but it. 0:03:39.780 --> 0:03:40.400 Has hurt them. 0:03:40.840 --> 0:03:43.920 And their response right now is basically, we don't need 0:03:43.960 --> 0:03:45.920 to do anything dramatic. We were in a good position 0:03:45.960 --> 0:03:48.420 before that, and that has not satisfied investors. 0:03:49.060 --> 0:03:53.480 It's a huge agenda today here in Hollywood. Preview some 0:03:53.500 --> 0:03:56.620 of it. And the big question is, this industry is 0:03:56.660 --> 0:03:58.680 genuinely debating while we're all gathered. 0:03:58.900 --> 0:04:01.400 Well, look, the Paramount Warner Brothers deal, even though we 0:04:01.420 --> 0:04:03.420 know it's going to happen, is still top of mind 0:04:03.460 --> 0:04:05.420 for everyone because they're wondering what it's going to look like. 0:04:05.460 --> 0:04:07.520 So we have Casey Bloys, as I mentioned. We also 0:04:07.540 --> 0:04:09.900 have Jerry Cardinale, who is David Ellison's deal guy, one 0:04:09.920 --> 0:04:12.490 of the largest shareholders in Paramount Skydance. I'm excited for 0:04:12.530 --> 0:04:15.170 both of those conversations. We have Dana Walden, who's the 0:04:15.210 --> 0:04:17.270 number two at the Walt Disney Company. We have not 0:04:17.310 --> 0:04:20.010 had Disney at this event before, so I'm excited for that. Obviously, 0:04:20.330 --> 0:04:22.890 a company of great interest. AI is a topic, as 0:04:22.910 --> 0:04:24.410 you mentioned, at the top of the show that's big. 0:04:24.430 --> 0:04:25.890 I think you're going to have Mikey Schulman, the. 0:04:25.890 --> 0:04:27.070 CEO of Suno, on the show. 0:04:27.330 --> 0:04:30.320 I'll be interviewing him with our colleague Ashley Carmen this afternoon. 0:04:30.380 --> 0:04:31.000 So that should be fun. 0:04:31.880 --> 0:04:35.320 Bloomberg's Lucas Shaw, leader of our Screen Time team and 0:04:35.339 --> 0:04:37.360 this annual event. Thank you very much, dude. I just 0:04:37.380 --> 0:04:39.870 want to stay with Netflix. Ted Sarandos says the streaming 0:04:40.260 --> 0:04:43.849 giant needs to move faster. And when Lucas sat down 0:04:44.150 --> 0:04:46.690 with the Netflix co-CEO to talk about engagement, the push 0:04:46.710 --> 0:04:50.770 into live programming and the company's strategy for growth, he 0:04:50.790 --> 0:04:51.950 was pretty strong. Listen to this. 0:04:52.940 --> 0:04:56.400 We are growing engagement. So we're growing on 200 billion 0:04:56.440 --> 0:05:00.440 hours of watching. We grew 2%. in our last announcement. 0:05:00.600 --> 0:05:03.260 But 2% is not what people are hoping for out 0:05:03.300 --> 0:05:07.229 of you, right? They're used to double-digit growth, at least 0:05:07.310 --> 0:05:09.850 certainly in revenue, and to some extent even in viewership, 0:05:09.870 --> 0:05:10.630 they'd expect more. 0:05:10.670 --> 0:05:14.390 This is my point about the growth in general. Yes, overall, 0:05:14.630 --> 0:05:16.110 we're not growing as fast as I want us to, 0:05:16.450 --> 0:05:20.240 and we're working on making that move faster. We are, though, 0:05:20.440 --> 0:05:22.460 also doing things that create a lot of headwind to 0:05:22.480 --> 0:05:25.580 that number, meaning when we do live programming on Netflix, 0:05:25.600 --> 0:05:29.860 which is a relatively new thing, we spend about 5% 0:05:29.860 --> 0:05:34.779 of our content budget on live events. They generate about 1% 0:05:34.779 --> 0:05:38.810 of our watching. But they do a very different job. 0:05:38.850 --> 0:05:41.510 They generate a lot of sign-ups. They're really effective for advertising. 0:05:41.529 --> 0:05:44.790 Sign-up, retention, advertising, all those things that they do. But 0:05:44.830 --> 0:05:48.370 it creates engagement headwind in how you invest against it. 0:05:49.270 --> 0:05:51.030 And remember, when I say we grew 2%, it's an 0:05:51.070 --> 0:05:53.500 easy number to sneeze at. But it's through all the 0:05:53.510 --> 0:05:56.979 growth of Live. It's through incredible headwinds from things like 0:05:57.000 --> 0:05:58.820 the World Cup and World Sports and all those things 0:05:58.839 --> 0:06:02.070 that are going on, too. So we are growing the business. 0:06:02.110 --> 0:06:04.810 We want to keep growing it faster. This past quarter, 0:06:04.850 --> 0:06:08.190 we did double-digit revenue growth in every. 0:06:07.450 --> 0:06:08.099 Region of the world. 0:06:08.640 --> 0:06:12.060 So the business is great and growing fine. I mean, 0:06:12.200 --> 0:06:13.790 if you asked me if we were growing at 20%, 0:06:13.790 --> 0:06:15.590 I'd be telling you I wish we were growing faster. 0:06:15.750 --> 0:06:15.930 Right. 0:06:16.610 --> 0:06:18.390 But when you said you wish you were growing faster 0:06:18.410 --> 0:06:19.969 and we're working on it, what are the things that 0:06:20.010 --> 0:06:23.150 you are working on to kind of reaccelerate that growth? 0:06:23.370 --> 0:06:25.910 Well, some of the things are in the expansion of 0:06:25.950 --> 0:06:28.000 what we do. So Live was an expansion of what 0:06:28.040 --> 0:06:31.560 we did that didn't necessarily bring more gross engagement, but 0:06:31.580 --> 0:06:35.789 it brings very valuable engagement. So it's not... a mystery 0:06:35.850 --> 0:06:39.440 that all engagement is not equal because you probably are 0:06:39.450 --> 0:06:42.180 not surprised to know that an hour of Judge Judy 0:06:42.190 --> 0:06:43.760 in the middle of the day does not generate as 0:06:43.800 --> 0:06:45.420 much revenue as an hour of NFL football. 0:06:46.140 --> 0:06:49.560 Or I saw some CPM chart recently that showed what 0:06:49.600 --> 0:06:52.779 you make per view versus what YouTube makes per view. 0:06:53.200 --> 0:06:53.940 And yours is higher. 0:06:54.100 --> 0:06:58.380 Yeah, we monetize better. Our programming monetizes better. Now, we're 0:06:58.400 --> 0:07:00.340 looking constantly at how do we do things to bring 0:07:00.420 --> 0:07:03.219 more value to the members, more things to watch, more 0:07:03.260 --> 0:07:06.260 ways to watch all those things. So that is some 0:07:06.300 --> 0:07:08.480 of these things that are, and I don't want to 0:07:08.600 --> 0:07:12.500 over-characterize things like podcasts and those things because they're very 0:07:12.540 --> 0:07:16.740 small investment and very small addition to what we're doing. 0:07:16.760 --> 0:07:19.060 The vast majority of what we spend on is professionally 0:07:19.120 --> 0:07:21.990 made movies and television series and games. 0:07:22.060 --> 0:07:25.190 Would you ever buy one of the big studios, take two? 0:07:25.530 --> 0:07:26.590 Microsoft seems to be. 0:07:26.510 --> 0:07:27.390 Unhappy with that. 0:07:27.410 --> 0:07:29.210 Well, as you know, we're not, we have not been 0:07:29.250 --> 0:07:34.470 traditionally big buyers. The Warner Brothers notwithstanding. that we've not 0:07:34.510 --> 0:07:38.770 really been builders from scratch. So I do think we've 0:07:38.790 --> 0:07:41.010 looked at, we have built some, worked with some of 0:07:41.050 --> 0:07:44.610 the smaller studios and programmers and developers, and there's a 0:07:44.990 --> 0:07:47.690 likeliness of those things come. The big problem with when 0:07:47.710 --> 0:07:50.990 you do these deals, and the reason why I go back, 0:07:51.030 --> 0:07:52.680 why the Warner Brothers was attractive, even though I said 0:07:52.690 --> 0:07:54.700 we were not going to do that, is it's very 0:07:54.800 --> 0:07:59.980 rare that this kind of asset was so clean. You're 0:08:00.000 --> 0:08:02.740 just buying just the things we wanted to buy. And 0:08:02.840 --> 0:08:05.600 so we were able to very easily look at this 0:08:05.660 --> 0:08:07.620 and say, how will this add value to Netflix and 0:08:07.660 --> 0:08:10.660 not destroy value in other ways? How do you take 0:08:10.700 --> 0:08:13.700 this growth engine and have it supercharge our growth engine? 0:08:14.260 --> 0:08:16.620 And for us, the ability to do that made that 0:08:16.660 --> 0:08:19.660 deal super unique. We're not looking for the next opportunity 0:08:19.680 --> 0:08:22.860 to backfill that deal because our plans and how we're 0:08:22.880 --> 0:08:25.940 going to grow is primarily organic, and we'll look for 0:08:25.960 --> 0:08:30.100 opportunities that complement the business as we go. That's for games, too. 0:08:33.210 --> 0:08:36.309 That was Netflix co-CEO Ted Sarandos speaking with Lucas Shaw. 0:08:36.330 --> 0:08:39.960 That's how we kicked off Bloomberg Screen Time 2026. Coming 0:08:40.050 --> 0:08:42.160 up on this show, we're going to discuss how AI 0:08:42.440 --> 0:08:45.540 is changing the way music gets made with Suno CEO 0:08:45.980 --> 0:08:56.660 Mikey Shulman. That's next. This is Bloomberg Tech. We go 0:08:56.840 --> 0:09:02.830 live to SpaceX, Space Launch Complex 40, Cape Canaveral, Florida, 0:09:03.429 --> 0:09:08.110 Crew Dragon 13. You have four astronauts, two Americans, one Canadian, 0:09:08.190 --> 0:09:11.910 one Russian cosmonaut. in the next 30 seconds heading to 0:09:11.950 --> 0:09:17.510 the International Space Station. SpaceX in coordination with NASA. As 0:09:17.600 --> 0:09:20.600 it stands, everything nominal. This mission looks like it's a go. 0:09:20.900 --> 0:09:23.860 Let's listen in to the countdown from Cape Canaveral, Florida. 0:09:24.140 --> 0:09:27.600 T-minus 10, 9, 8, 7, 6, 5, 4, 3, 2, 1, ignition. 0:09:36.550 --> 0:09:37.449 And liftoff. 0:09:37.670 --> 0:09:40.689 Go Falcon, go Dragon, and go Crew-13. 0:09:42.890 --> 0:09:47.970 Liftoff of Crew-13 carried by Dragon Brace to the International 0:09:47.990 --> 0:09:50.110 Space Station. 0:09:52.230 --> 0:09:54.650 All nine Merlin engines on the first stage at maximum 0:09:54.690 --> 0:09:55.710 thrust of 1.7 million pounds. 0:10:01.890 --> 0:10:02.650 We heard a good call. 0:10:02.670 --> 0:10:04.780 The propulsion is nominal or as expected. 0:10:04.800 --> 0:10:08.240 The spacecraft will also begin to pitch downrange, meaning it's 0:10:08.300 --> 0:10:10.600 turning slightly horizontally from what you saw. 0:10:10.460 --> 0:10:12.360 At liftoff to help build speed. 0:10:15.240 --> 0:10:20.959 E plus 40 seconds. T-plus 40 seconds into Crew 13's 0:10:21.059 --> 0:10:22.120 mission on board. 0:10:22.140 --> 0:10:23.020 Stage one throttle down. 0:10:23.500 --> 0:10:25.860 Of Dragon and Falcon 9. And we did hear that 0:10:25.880 --> 0:10:27.900 call out for stage one throttle down. That is in 0:10:27.950 --> 0:10:30.790 preparation for Max Q coming up here in. 0:10:30.830 --> 0:10:31.250 A few seconds. 0:10:31.290 --> 0:10:35.390 Okay, there are four astronauts heading on Falcon 9 inside 0:10:35.429 --> 0:10:37.790 a Dragon capsule towards the International Space Station, just hitting 0:10:37.830 --> 0:10:40.390 the moment of Max Q, where the air is most 0:10:40.450 --> 0:10:44.690 dense as the craft passes through Earth's atmosphere. The maximum 0:10:44.750 --> 0:10:46.170 moment of aerodynamic pressure. 0:10:46.710 --> 0:10:46.950 Those. 0:10:47.470 --> 0:10:49.790 astronauts feeling three to four g's on the way up 0:10:49.840 --> 0:10:52.679 this has kind of become routine um but it's an 0:10:52.720 --> 0:10:55.960 important mission for spacex nonetheless with the future of the 0:10:56.040 --> 0:11:00.059 falcon as the launch system program under question dragon as 0:11:00.100 --> 0:11:03.140 well i want to bring in bloomberg space correspondent lauren 0:11:03.179 --> 0:11:05.450 grush um you know you and i talk about this 0:11:05.470 --> 0:11:07.410 all the time right lauren this is kind of somewhat 0:11:07.450 --> 0:11:10.030 routine but give us the context and why this this 0:11:10.090 --> 0:11:13.740 mission to service iss is important Right. 0:11:13.780 --> 0:11:16.760 Well, as you see, it's the 13th mission that SpaceX 0:11:16.780 --> 0:11:19.160 has done. So we really are getting into the rhythm 0:11:19.200 --> 0:11:22.040 of things. But it does come at an interesting time, 0:11:22.120 --> 0:11:25.240 which you said, which is that the future of the 0:11:25.280 --> 0:11:28.110 Crew Dragon that the crew is flying in is kind 0:11:28.140 --> 0:11:30.290 of in question at the moment. There's a lot of 0:11:30.370 --> 0:11:33.990 speculation that SpaceX is going to retire the Crew Dragon 0:11:34.450 --> 0:11:36.770 as soon as the ISS program ends. We don't have 0:11:36.809 --> 0:11:39.790 a clear answer on that. But this could be one 0:11:39.830 --> 0:11:42.720 of the few remaining Crew Dragon missions that we actually 0:11:42.770 --> 0:11:45.840 see them do for NASA. They have four more scheduled 0:11:45.960 --> 0:11:47.900 for crew rotation missions going forward. 0:11:48.320 --> 0:11:48.940 So we should. 0:11:48.780 --> 0:11:51.420 Definitely keep an eye on those. But yeah, it's an 0:11:51.490 --> 0:11:53.370 interesting time for these launches to occur. 0:11:56.030 --> 0:11:59.030 Okay, we're waiting for Miko main engine cutoff where the 0:11:59.050 --> 0:12:03.069 first stage engine shuts down. Then we should get stage separations, 0:12:03.090 --> 0:12:06.330 a pretty nice visual that we get any moment now. 0:12:07.070 --> 0:12:10.709 Three first-time flyers, Lauren, on this mission, and there you 0:12:10.730 --> 0:12:12.829 have it, that stage separation I was talking about a 0:12:12.860 --> 0:12:15.240 second ago. Just give us a bit more of the 0:12:15.260 --> 0:12:18.160 mission overview and the reality of what it takes for 0:12:18.179 --> 0:12:19.840 Dragon to get to the ISS. 0:12:20.780 --> 0:12:21.700 Yeah, absolutely. 0:12:21.780 --> 0:12:25.660 So these are pretty routine missions, if you can call 0:12:25.710 --> 0:12:29.050 them routine. You know, space flight is never routine. But 0:12:29.130 --> 0:12:30.150 in order to keep the. 0:12:30.190 --> 0:12:32.270 ISS fully staffed. 0:12:32.370 --> 0:12:36.790 They send crews every six months to the International Space Station. 0:12:37.170 --> 0:12:40.179 So this crew is heading to the ISS. They'll stay 0:12:40.200 --> 0:12:43.470 there for roughly a week and greet the crew that's 0:12:43.500 --> 0:12:44.270 already on board. 0:12:44.630 --> 0:12:45.030 And then the. 0:12:44.990 --> 0:12:48.550 Previous crew, Crew 12, another four-person crew, is slated to 0:12:48.590 --> 0:12:51.349 come home once they do that handover mission. And so 0:12:51.610 --> 0:12:57.680 it's a pretty periodic schedule that SpaceX has helped NASA maintain, 0:12:57.860 --> 0:13:03.020 you know, regular schedule. crew, um, appointments to the ISS. 0:13:03.040 --> 0:13:05.800 So it's, it's, um, you know, like I said, hate 0:13:05.820 --> 0:13:08.880 to call it standard, but it is a standard mission. 0:13:08.620 --> 0:13:13.560 For NASA and SpaceX. Okay, Bloomers, Lauren Grush, thank you 0:13:13.580 --> 0:13:15.980 very much. You can keep watching the full launch on 0:13:16.000 --> 0:13:20.140 the terminal at Live Go. Let's go from space back 0:13:20.179 --> 0:13:22.540 down to earth here in Hollywood and back to entertainment. 0:13:22.960 --> 0:13:26.000 And look at the collision of AI and creativity, specifically 0:13:26.040 --> 0:13:29.770 in music. Suno has brought AI-generated music to more than 0:13:29.770 --> 0:13:33.730 100 million users. and is now partnering with some of 0:13:33.750 --> 0:13:36.650 the industry's biggest players. Joining us is Suno co-founder and CEO, 0:13:37.070 --> 0:13:38.790 Mikey Shulman. I think a really good place to start is, 0:13:39.050 --> 0:13:41.250 for those that just aren't familiar with Suno, what it 0:13:41.330 --> 0:13:42.720 is and what you can actually do with it. 0:13:43.150 --> 0:13:44.000 Yeah, great to be here. 0:13:45.059 --> 0:13:47.900 For the uninitiated, Suno is a way for everybody to 0:13:48.040 --> 0:13:52.280 enjoy making music, whether you're a Grammy-winning producer tweaking something, 0:13:52.300 --> 0:13:54.500 getting that last little bit out of it, or a 0:13:54.540 --> 0:13:58.480 grandmother just making music for fun. And the thing about 0:13:59.020 --> 0:14:02.780 music is... Everybody is creative, but not only is everybody creative, 0:14:02.880 --> 0:14:04.290 everybody enjoys being creative. 0:14:04.309 --> 0:14:06.470 You're talking about humans being creative. 0:14:06.490 --> 0:14:09.730 Yes, everybody is creative. And so forget the tooling that 0:14:09.770 --> 0:14:13.570 you use. When you spend 30 minutes making music or 0:14:13.590 --> 0:14:15.750 making anything, you just feel so much better than the 0:14:15.790 --> 0:14:18.310 way we're entertained today of just consuming stuff. And we 0:14:18.350 --> 0:14:21.010 think in the future, everybody will be entertained creatively. 0:14:21.650 --> 0:14:24.400 That 100 million number is a big number. Kind of 0:14:24.420 --> 0:14:27.510 surprised me a little bit. Who are those people? What 0:14:27.550 --> 0:14:30.290 types of people? What are the demographics? What are the 0:14:30.330 --> 0:14:32.730 profiles of people that are engaging with the technology? 0:14:32.910 --> 0:14:35.310 It's so interesting. It is so varied. 0:14:35.390 --> 0:14:37.510 It's like I said, we know tons and tons of 0:14:37.590 --> 0:14:40.850 industry professionals using this in their day-to-day workflows, falling in 0:14:40.890 --> 0:14:42.670 love with new ways of making music professionally. 0:14:43.110 --> 0:14:44.730 But it is the whole world. 0:14:44.890 --> 0:14:48.200 It's every gender, every race, every country. We work in 0:14:48.250 --> 0:14:51.240 every language. Music is so universal. So it's not surprising 0:14:51.300 --> 0:14:52.760 to us that we see this. 0:14:52.880 --> 0:14:53.400 All over the world. 0:14:53.740 --> 0:14:57.140 This is... I think the third edition of Bloomberg Screen Time. 0:14:57.340 --> 0:15:01.300 And over those three years, we've been talking about the 0:15:01.370 --> 0:15:05.030 use of AI in generating music, but content generally. The 0:15:06.030 --> 0:15:10.050 music industry, I would say, was initially pretty hostile to 0:15:10.070 --> 0:15:13.570 the technology, what it would mean for them, for their content, 0:15:13.710 --> 0:15:14.730 their IP. 0:15:15.330 --> 0:15:16.170 Where are we at now? 0:15:17.620 --> 0:15:21.240 I think we found ourselves in a really interesting, complex time. 0:15:21.380 --> 0:15:24.470 The entire industry of music is moving very quickly, and 0:15:24.490 --> 0:15:27.890 actually the entire industry of AI is moving extremely quickly. 0:15:27.930 --> 0:15:31.260 And so things are shifting in a very complex way. 0:15:31.560 --> 0:15:32.000 That said. 0:15:32.620 --> 0:15:35.310 It's a really exciting time because as the technologies progress, 0:15:35.330 --> 0:15:37.030 we are able to do so much more with our 0:15:37.070 --> 0:15:37.770 industry partners. 0:15:37.990 --> 0:15:39.730 We're able to push things forward a lot more. 0:15:40.070 --> 0:15:43.620 I think slowly we see people actually excited to speak 0:15:43.660 --> 0:15:47.520 a little bit about how they use these tools, about how... 0:15:47.820 --> 0:15:50.840 It is helping them amplify their creativity about how there's 0:15:50.900 --> 0:15:54.370 actually a human behind everything. And so I'm really, really 0:15:54.410 --> 0:15:55.229 excited for the next year. 0:15:55.570 --> 0:15:58.490 Let's talk about where Suna has got commercially. You have 0:15:58.550 --> 0:16:02.850 partnerships with Warner, BMG, for example. What is it that 0:16:02.870 --> 0:16:06.000 you actually do with or for them? What's the output 0:16:06.400 --> 0:16:06.920 for Suno? 0:16:07.080 --> 0:16:07.860 It's a great question. 0:16:08.080 --> 0:16:12.020 I think that we think of these partnerships as really long-term, 0:16:12.330 --> 0:16:14.870 and it's because where we are today is a particular 0:16:14.910 --> 0:16:17.090 moment in time, but what the future of music can 0:16:17.130 --> 0:16:19.590 be is actually still unknown. And the thing we're most 0:16:19.650 --> 0:16:22.870 excited about these partnerships is building products that could never 0:16:22.910 --> 0:16:25.530 have been built before without bringing the best technology and 0:16:25.550 --> 0:16:26.050 the biggest. 0:16:25.870 --> 0:16:26.430 Music companies together. 0:16:26.450 --> 0:16:29.260 When you say building products, you mean building tracks? What 0:16:29.300 --> 0:16:30.640 is it that they pay you for? 0:16:30.800 --> 0:16:32.920 So imagine you can take. 0:16:33.400 --> 0:16:35.700 the music of one of your favorite artists and start 0:16:35.740 --> 0:16:38.720 to play with it and remix it or cover it 0:16:38.780 --> 0:16:40.880 or mash it up with something else or otherwise change 0:16:40.920 --> 0:16:43.040 it in a way that has you feeling like you 0:16:43.090 --> 0:16:44.710 are co-creating with your favorite artist. 0:16:44.750 --> 0:16:46.730 This is an entirely new product. 0:16:47.010 --> 0:16:49.810 Digital music today has become very, very passive and to 0:16:49.850 --> 0:16:52.110 pull people in, get them to engage in new ways, 0:16:52.150 --> 0:16:54.310 this is how we actually grow The music business. 0:16:54.950 --> 0:16:57.890 Mikey, let's go to the underlying technology, the core competence 0:16:57.950 --> 0:17:00.480 that you and the team at Sonar have. Is it 0:17:00.620 --> 0:17:04.740 in AI? Are you model builders, a model lab, or 0:17:04.760 --> 0:17:08.480 do you harness? Harness is a very specific term. Do 0:17:08.500 --> 0:17:10.240 you make use of other people's technology? 0:17:10.800 --> 0:17:13.760 We build all of our technology in-house. When we started 0:17:13.780 --> 0:17:16.700 this company, there was nothing. in this space, and so 0:17:16.770 --> 0:17:18.290 we really had to be the tip of the spear. 0:17:18.630 --> 0:17:21.090 That said, I really think of us as a music company, 0:17:21.130 --> 0:17:24.300 as a product company. We are building technology, not just 0:17:24.320 --> 0:17:26.700 for the sake of building technology, but actually for the 0:17:26.740 --> 0:17:27.920 sake of delighting our users. 0:17:28.400 --> 0:17:30.980 And you cover a lot of AI stuff. There's so 0:17:31.030 --> 0:17:31.950 much focus. 0:17:31.869 --> 0:17:36.590 On on utility, on the enterprise, and there's not enough 0:17:36.609 --> 0:17:38.750 focus on what I think is a fundamental part of 0:17:38.770 --> 0:17:42.810 being a human, which is fulfillment, creativity, fun, entertainment. And 0:17:43.130 --> 0:17:45.140 I think this is to everybody's detriment to just think 0:17:45.200 --> 0:17:47.800 about everything through the technological lens and not enough through 0:17:47.820 --> 0:17:48.380 the human lens. 0:17:49.260 --> 0:17:52.400 How important is it? So, you know, we're talking about 0:17:52.420 --> 0:17:55.399 the medium of audio, but how do you sort of 0:17:55.520 --> 0:17:57.880 make it clear to the world this is a piece 0:17:57.920 --> 0:18:00.310 of AI-generated audio content? 0:18:00.330 --> 0:18:00.409 Yeah. 0:18:01.220 --> 0:18:03.139 And this is not. Do you need to? Is it 0:18:03.180 --> 0:18:06.219 incumbent on you to say, make that distinction? 0:18:06.960 --> 0:18:09.619 This is a really interesting issue. Just my opinion. 0:18:10.040 --> 0:18:12.139 I think when we think about what is AI music, 0:18:12.160 --> 0:18:14.320 what does that really mean? This is such a broad 0:18:14.359 --> 0:18:16.920 spectrum of things, whether it's somebody typed a few words 0:18:16.960 --> 0:18:19.440 into a text box or a professional using it just 0:18:19.510 --> 0:18:22.590 in bits and pieces at that final step. And in 0:18:22.650 --> 0:18:25.070 my opinion, we don't want any single party, whether it's 0:18:25.090 --> 0:18:28.570 an AI platform or a media platform, a set of 0:18:28.630 --> 0:18:29.149 rights holders. 0:18:29.190 --> 0:18:31.389 We actually want to make these decisions together. 0:18:32.090 --> 0:18:34.649 And to add more complexity to this, actually, this is 0:18:34.690 --> 0:18:38.060 kind of a shifting landscape as the technology itself changes, 0:18:38.180 --> 0:18:39.880 as the way in which we use AI in music 0:18:39.920 --> 0:18:42.800 production changes. And so it's actually good that we don't 0:18:42.840 --> 0:18:44.140 have firm rules of the road just yet. 0:18:45.000 --> 0:18:47.530 Let's use the case study of a vocal artist. It 0:18:47.590 --> 0:18:50.390 could be anyone, right? There are those that have concerns, right? 0:18:50.750 --> 0:18:53.030 But there are also people that see opportunity. They could 0:18:53.109 --> 0:18:56.530 license their voice. Essentially, they could make it available. They 0:18:56.550 --> 0:19:00.480 could open source it, I suppose. What do you see 0:19:00.520 --> 0:19:04.200 in that space? You know, that is basically the idea 0:19:04.220 --> 0:19:07.700