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Speaker 1: We're from BHARD. We're Innovation, Money and Power Collie in

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Speaker 1: Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde

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Speaker 1: and Ed Ludlow.

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Speaker 2: Welcome to a special edition of Bloomberg Technology Live from

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Speaker 2: Bloomberg screen Time in Los Angeles. Coming up this hour,

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Speaker 2: we'll bring you conversations from some of the biggest names

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Speaker 2: in the entertainment industry.

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Speaker 3: So today we're going to be speaking with top celebrities, entrepreneurs,

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Speaker 3: moguls across what is a changing media landscape. And we're

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Speaker 3: starting with Bloomberg's Lucas Shaw, the managing editor who leads

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Speaker 3: screen Time, our own celebrity exactly. And screen time is

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Speaker 3: the coverage of popular culture. It is a huge global

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Speaker 3: industry and it kicked off last night with Live Nation.

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Speaker 3: Mike Rippino and I came to realize something sitting in

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Speaker 3: the audience that Live Nation is peerless. If you think

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Speaker 3: about its business concerts is one fastest of it around

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Speaker 3: the world. It was such an engaging conversation. Honestly, it

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Speaker 3: was a CEO of a company that was refreshingly honest.

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Speaker 3: You did the interview, you talk about it. Where do

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Speaker 3: you want to go with that?

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Speaker 4: Well, look to your point, he has no peers, and

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Speaker 4: I think he also serves sort of like a founder.

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Speaker 4: Like I find that founders are more candidate interviews because

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Speaker 4: they kind of don't care. They don't have as many

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Speaker 4: people that answer to. And he's been running that business

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Speaker 4: now for almost twenty years.

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Speaker 1: Right.

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Speaker 4: They are the biggest concert promoter in the world by

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Speaker 4: a wide mile. They're the biggest ticket seller because a

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Speaker 4: ticketmaster by a lot. He knows that, he's confident. He

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Speaker 4: has relationships with every artist. When they want to know

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Speaker 4: what should I do with my tour? They call him,

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Speaker 4: and so he can be a little you know, he

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Speaker 4: can poke fun at the government which is suing him

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Speaker 4: right now. He can do things like that in a

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Speaker 4: way that I don't think other CEOs can.

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Speaker 5: But he can poke the bear.

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Speaker 2: But the bear wants to spin up this size and

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Speaker 2: scale that he's managed to build up.

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Speaker 5: And so what was his reaction to all of this?

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Speaker 1: Well, I thought it was interesting.

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Speaker 4: I asked him, as a way of get into the

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Speaker 4: DOJ question, if he would sell Ticketmaster, which is something

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Speaker 4: that the DJ would like him to do.

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Speaker 1: Right.

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Speaker 4: They want to break up Live Nation and Ticketmaster, which

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Speaker 4: is sort of where this all started with a merger

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Speaker 4: many years ago. He's like, some days, yes, because Ticketmaster

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Speaker 4: is the biggest pain for him. That's when fans get

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Speaker 4: mad when tickets still get sold. But if you talk

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Speaker 4: to anyone at the company, they're pretty confident that they're

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Speaker 4: going to win this DOJ suit because they don't think

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Speaker 4: that the DOJ really understands the music business. And I think,

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Speaker 4: if they were being honest, they're also maybe kind of

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Speaker 4: hoping that the people in charge of the DOJ will

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Speaker 4: be different by the time this is done.

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Speaker 3: So what you did well, and if you're just joining us, right,

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Speaker 3: what we're talking about is media and entertainment. But a

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Speaker 3: company that's been in the headlines because of Taylor Swift

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Speaker 3: and then Oasis, But they kind of have two parts

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Speaker 3: of their business and you helped us learn about that.

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Speaker 3: There's ticketing and then I think promotion. Yeah, just explain it.

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Speaker 1: So Live Nation is a concert promoter.

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Speaker 4: That means that they're the people who are in charge

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Speaker 4: of putting on a show.

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Speaker 1: Right.

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Speaker 4: When you're a promoter, you make very little money because

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Speaker 4: the artist keeps.

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Speaker 1: Almost all of the tickets sit, which seems fair totally.

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Speaker 4: The promoter can make money from merchandise, can make money

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Speaker 4: from food and beverage, that sort of thing.

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Speaker 1: They also own a ticket seller.

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Speaker 4: Ticket sellers similarly, don't make very much money from the

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Speaker 4: actual tickets being sold.

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Speaker 1: They make their money from the fees.

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Speaker 4: But when we're talking about profit margins, content promotion is

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Speaker 4: a very low margin business. Ticket selling is a better

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Speaker 4: business Live Nation. You add in advertising, which they do.

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Speaker 4: They sell sponsorships and ticketing, and advertising is actually where

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Speaker 4: they make most of their money. But the promotion is

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Speaker 4: sort of the meat of the business, and so the

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Speaker 4: whole package works really well. But it's also something that

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Speaker 4: some people feel is unfair.

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Speaker 2: We're going to be listening to part of that interview

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Speaker 2: that you conducted last night in a moment, but push

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Speaker 2: us forward to today. We are currently sat in LA

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Speaker 2: It's about to get fiercely hot. It's going to get

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Speaker 2: crowded in here, and with excitement. You've got others in

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Speaker 2: the music industry, Ron for example.

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Speaker 4: Yeah, I really hope it's not too hot today, but

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Speaker 4: it is a concern. Look, Scooter doesn't do very many interviews.

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Speaker 4: He's had a pretty tumultuous couple of years. There was

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Speaker 4: sort of this period where he basically stopped managing a

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Speaker 4: lot of his biggest clients, justin Bieber Ariana Grande. It

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Speaker 4: was reported as they fired him. I think it was

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Speaker 4: sort of a conscious uncoupling in the term of Gwynne

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Speaker 4: Paltrow and Chris Martin. But I'm very excited to talk

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Speaker 4: to him about that and about sort of discovering talent

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Speaker 4: and how that works, because there's a lot of concern

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Speaker 4: that it's hard for artists to break out. Right now, We've.

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Speaker 2: Got so many great conversations coming up, Sean Evans, you

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Speaker 2: gonna be listening to Matt Stone. Cannot wait for that

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Speaker 2: conversation all about South Park. Look as sure, what a

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Speaker 2: legend who's currently running this event for us.

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Speaker 5: We thank him.

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Speaker 2: Meanwhile, those panels actually did kick off yesterday as we're saying,

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Speaker 2: let's just listen to a little bit of that conversation

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Speaker 2: the CEO of Live Nation, Michael Rappino, who says they

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Speaker 2: actually want resale prices to be capped.

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Speaker 6: Listening Unfortunately, those ten times a year when you have

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Speaker 6: ten million people trying to buy a million Oasis tickets,

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Speaker 6: you know, nice way to tell nine million passionate fans,

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Speaker 6: sorry the store is closed. So you know that that

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Speaker 6: creates lots of tens and they go online and they

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Speaker 6: see paid, they see you ten pages of secondary tickets

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Speaker 6: and they get pissed off.

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Speaker 4: If you had a magic wand or you were you

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Speaker 4: were a third of named Emperor for the day, and

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Speaker 4: you could change just change ticketing however you wanted, what

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Speaker 4: would you do?

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Speaker 6: It's it's a great question. The problem is professional bots

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Speaker 6: all around the world. You know, we got hit by

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Speaker 6: multi billions of bots on the Oasis on sale, you know,

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Speaker 6: so there are professional twelve billion dollar business trying to

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Speaker 6: capture all those seats, right, so it's an arms race

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Speaker 6: with us trying to stop them. Not let them in

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Speaker 6: the door, let them, not let them hold the tickets.

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Speaker 6: You shouldn't have a middleman that has nothing invested in

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Speaker 6: the business make any money from it. So we would

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Speaker 6: love it regulated in some sense, cap it at twenty percent.

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Speaker 1: Some people can make a little money. That would be the.

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Speaker 6: Biggest part that we get. The most engine on the

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Speaker 6: an cell.

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Speaker 1: Is that right now? Right?

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Speaker 3: That was Live Nation CEO Michael Rapino, and it was

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Speaker 3: refreshingly honest in that conversation with Lucas Shaw. Many more

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Speaker 3: conversations like that coming up throughout the day. Okay, on

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Speaker 3: this program Bloomberg Technology, We're going to talk video generation

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Speaker 3: in the context of AI and much more with Runway

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Speaker 3: CEO Chris the baal of Anezuela.

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Speaker 7: That's coming up next.

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Speaker 3: This is Bloomberg Technology on the Road screen Time, Los Angeles, Hollywood.

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Speaker 3: All right, if you're just joining us, this is Bloomberg

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Speaker 3: Technology on the road in Hollywood at screen Time. Runway

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Speaker 3: is using AI to revolutionize the entertainment industry. The company's

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Speaker 3: teamed up with Lionsgate Studios to build AI models and

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Speaker 3: now has backing to produce dozens of films, movies literally

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Speaker 3: about it.

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Speaker 7: Runway CEO Chris bell Anezuela joins.

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Speaker 3: Us and that deal. How real is it? The process

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Speaker 3: the production of making a film in partnership using your technology.

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Speaker 1: Yeah, so it's a first off.

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Speaker 8: It's kind kind of the ill and the idea behind

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Speaker 8: it really is to take the Lionsgate team further with

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Speaker 8: the technology. We're at the crossing point where AI is

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Speaker 8: becoming really useful for filmmaking, and so what we really

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Speaker 8: want to make sure is that we help creative filmmakers, artists,

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Speaker 8: studios really understand how to use it in the best

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Speaker 8: way possible, and so what we did with Lionsgate it's

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Speaker 8: I think something we've been trying to do for a

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Speaker 8: long time, basically to reach the gap between AI and

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Speaker 8: Hollywood and bring this technology in much more accessible ways

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Speaker 8: too many fast.

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Speaker 7: As you know, I love the detail of things.

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Speaker 3: Are we talking about filmmakers at Lionsgate sitting as a

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Speaker 3: computer using your your your software as part of their process?

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Speaker 1: Yeah, that's kind of the point.

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Speaker 8: There's many tasks in the development of a movie where

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Speaker 8: you and in bad AI.

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Speaker 7: Or our models and make that cheaper and faster.

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Speaker 8: So if you're iterating through storyboarding or previousizations or visual effects,

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Speaker 8: you can use our models, and filmmakers are now understanding

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Speaker 8: how to use these models in ways that are very

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Speaker 8: useful for them, right. But I think that's the key

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Speaker 8: aspect of it, which is for a long time it

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Speaker 8: has been seen as this kind of a system that

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Speaker 8: creates movies on its own, right, And it's really not

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Speaker 8: like that.

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Speaker 7: It's really a tool for.

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Speaker 8: Directors on filmmakers, And with the lens Geed deal, what

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Speaker 8: we really want to make sure they understand is that

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Speaker 8: they can take that further for the movies and becomes

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Speaker 8: a really cost effective tool to you. So again, if

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Speaker 8: you're spending hundreds of self dollars in making a shot,

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Speaker 8: making a visual effects a scene, you can now use

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Speaker 8: Runway to kind of reduce that cost and move faster

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Speaker 8: and to better results.

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Speaker 2: You've been improving your models, Yes, how costly does that become?

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Speaker 8: Remain there's definitely research that has to be done to

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Speaker 8: train the models on the first end, but then running

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Speaker 8: the models and using them has become much more cost

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Speaker 8: effective over time. And I don't know, I think we're yet

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Speaker 8: at the point where you will see an optimization, like

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Speaker 8: we're going to optimize the models even more so the

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Speaker 8: cost of running them will be even cheaper and faster.

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Speaker 2: Let's just talk a little bit about therefore, is you're

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Speaker 2: building your offering, you're winning over new clients like Lionsgate.

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Speaker 2: We think about where we were this time last year.

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Speaker 2: We think about Hollywood in strike mode because in large

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Speaker 2: part because ourtivision intelligence. What sort of conversations you had

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Speaker 2: to have to get people comfortable with this technology.

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Speaker 8: Well, the first thing that I think it's important to

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Speaker 8: remember is that Hollywood is the history of technology. Like

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Speaker 8: we are here because of technological breakthrough, right, and so

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Speaker 8: we sometimes forget that ourd and technology kind of like

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Speaker 8: come together always, and for us it's like this may

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Speaker 8: defind a little bit of technology. Again, if you understand

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Speaker 8: AI as a tool for humans, then it changes the

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Speaker 8: narrative and it's less about fearing it and more about

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Speaker 8: embracing it and you realize how.

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Speaker 1: You can actually use it. And I think what we

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Speaker 1: need to.

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Speaker 8: Do right now is kind of like educate more and

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Speaker 8: show the potential. There's also challenges of the technology. It's

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Speaker 8: not a kind of technology. It's not a perfect tool.

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Speaker 8: There are things that are not exactly working as they should,

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Speaker 8: but that's kind of the point, as you need to

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Speaker 8: improve them and make it even better. And I think

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Speaker 8: part of it is just like showing more people, more producers,

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Speaker 8: more Hollywood studios, really the potential of film.

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Speaker 3: And you said because about Caroline and I use text

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Speaker 3: to text, texted image, text and video tools every day.

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Speaker 3: I love technology, but I also just love film. Yeah,

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Speaker 3: and there comes a point where I just want to

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Speaker 3: ask if AI really can give the same feeling create

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Speaker 3: film and movie and content that is as authentic as

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Speaker 3: the great filmmakers can make it with their hands and

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Speaker 3: their eyes and camera.

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Speaker 7: What do you think about that?

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Speaker 8: Well, the interesting thing is filmmaking and stories and art

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Speaker 8: are never really about the denali are about conveying feeling

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Speaker 8: and emotion. Are about connecting with the viewer and telling

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Speaker 8: and make you feel something. Right, You never watch a

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Speaker 8: movie because how it was made right, or the cameras

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Speaker 8: that were used to make the movies.

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Speaker 7: Right, You watch your real nerves.

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Speaker 8: Yeah, yes, but maybe even though like after the fact

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Speaker 8: that you like the movie, right, you can go deeper

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Speaker 8: into how it was made. But ninety nine percent of

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Speaker 8: the world which is movie because they feel something because

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Speaker 8: they connect with it, And so ai you think about

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Speaker 8: it as a tool, can help you kind of connect

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Speaker 8: with your audience, can help you deliver that message, can

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Speaker 8: help you tell us stories. And so right now, I

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Speaker 8: think we're fascinating by the technoli itself because it is fascinating,

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Speaker 8: it's revolutionary, it's changing the game. It's incredibly new and exciting.

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Speaker 8: But at the same time, if you want to focus

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Speaker 8: on art and filmmaking, it's important that we switch the

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Speaker 8: narrative to storytelling to people and how they use it

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Speaker 8: and how they convey stories with technology and less about

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Speaker 8: how which AI or which technology was used behind the scenes.

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Speaker 2: You've been telling stories to raise money, and you've got some.

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Speaker 5: Really interesting investors because.

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Speaker 2: Not many of them are going to be in the

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Speaker 2: world of art and creation. In fact, you've got Nvidio salesforce.

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Speaker 2: What do they want to see out of you? Why

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Speaker 2: do you have these sort of strategic investors coming on

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Speaker 2: like an Nvidia and what do they earn it?

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Speaker 9: Well?

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Speaker 8: I think they are telling stories and their users are

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Speaker 8: also telling stories. Again, you can think about storytelling as Hollywood,

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Speaker 8: as media, as films, but okay, you think about companies.

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Speaker 8: Companies are also telling stories when they're advertising, when they're

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Speaker 8: doing marketing, when they're communicating with they're users, and so

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Speaker 8: if you can help them also deliver better messages, then

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Speaker 8: that's also a form of storytelling. Perhaps it's not as

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Speaker 8: the art kind of like form, but it's still like

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Speaker 8: a former video. You want to make sure we can

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Speaker 8: work with companies like that that are great and have

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Speaker 8: been great partners for us for all long.

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Speaker 3: For at least a year, I've been hearing about Runway

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Speaker 3: and your name comes up a lot. Open AI has

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Speaker 3: Sora on the show. In the last week we talked

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Speaker 3: about Meta's new tool. Yeah, but you have a very

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Speaker 3: singular focus. Where do you think you stand in your

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Speaker 3: competence and as a business relative to that competition of

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Speaker 3: open AI and Meta.

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Speaker 1: Yeah.

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Speaker 8: Look, when we started this seven years ago, it was

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Speaker 8: a very new field, and I think we prevent over

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Speaker 8: time that it's a really exciting and worthwhile time field

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Speaker 8: to spend time. And it's an industry that's going and

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Speaker 8: it's changing. And I think when you create a market

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Speaker 8: and you create a good opportunity, you will have competition.

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Speaker 8: I think it's it's unreal to think that no one

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Speaker 8: else will try to build what we're building. But at

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Speaker 8: the same time, we're very much in the long term

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Speaker 8: horizon strategy, like everything we're building is not really about

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Speaker 8: video to the eights around everything else that we can

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Speaker 8: build to create better tools for storytellers over the world,

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Speaker 8: And so video is only a first kind of like

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Speaker 8: stepping stone, but working towards audio, towards images, towards three D.

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Speaker 8: Just a collective system and collective set of tools and

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Speaker 8: AI system that can help you in all forms of

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Speaker 8: storytellings that you want to tell.

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Speaker 10: Will you raise more money for that long we will

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Speaker 10: have to do whatever we have to do to deliver

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Speaker 10: that meeting, you will have to We've been kind of

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Speaker 10: like raising almost every year from now since we started

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Speaker 10: seven years ago, and IPS.

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Speaker 8: We're just focused on building right now.

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Speaker 11: We always want to know that about things run by

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Speaker 11: CEO Christ about Valenzuela, want a joy to have him.

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Speaker 2: We've given you the founder take from La, but let's

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Speaker 2: get the analysts take now on the future of entertainment,

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Speaker 2: the intertwining of generative AI and the competition we're seeing

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Speaker 2: when it comes to streaming in the light we needn't

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Speaker 2: see your entertainment analyst, Laura Martin, We're.

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Speaker 5: So excited to meet you here in the flat.

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Speaker 12: Finally after all this time. Lovely to be here.

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Speaker 2: And you were just here listening to what Crista Bell

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Speaker 2: was talking about in terms of the Runway deal working

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Speaker 2: with Lionsgate and for you. How much is generative AI

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Speaker 2: changing up the game of the companies you cover?

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Speaker 12: You know, I think it's changing it a lot.

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Speaker 13: I see it most in my tech first companies because

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Speaker 13: they have to adopt generalor AI. These content storytelling companies,

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Speaker 13: I think are going to be a little slower because

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Speaker 13: you watch consumers watch movies because it's storytelling. But I

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Speaker 13: think Generator VII opens up poor creative windows.

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Speaker 3: Let me just jump in and say, for oblionbo Telogy,

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Speaker 3: and you cover public equities, but it's tech companies, but

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Speaker 3: also some the media and entertainment names.

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Speaker 7: Yes, and let's give that context and go from their.

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Speaker 12: Current So I think it's really important.

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Speaker 13: I think we don't know how much is going to

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Speaker 13: affect Hollywood because under the strikes they prohibited the use

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Speaker 13: of Generative AI for three years of their deals, so

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Speaker 13: it won't affect Hollywood quite as quickly, at least the

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Speaker 13: big studios. But I think Runway is going to be

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Speaker 13: really important to the future of entertainment, to.

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Speaker 5: The future of hiring.

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Speaker 2: I mean, how much do you start to see this

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Speaker 2: becoming a profit generators to a certain extent because they're

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Speaker 2: able to strip out costs.

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Speaker 13: So since we're sitting in Hollywood, I'll be respectful of

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Speaker 13: the guilds and say that I think of what it

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Speaker 13: first does first is open up new areas of creativity.

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Speaker 13: Just like animation unleashes has created to give you and

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Speaker 13: draw anything. I think that's what Generative AI does over time.

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Speaker 13: What I am hearing from companies that are in the

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Speaker 13: tech world that are adopting generator. By is they think

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Speaker 13: they can cut costs where it applies in segments where

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Speaker 13: it applies by twenty to thirty percent.

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Speaker 7: The players are different.

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Speaker 3: I think it's been so interesting to be here with

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Speaker 3: Caroline for twenty four hours. Is go to the studios,

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Speaker 3: to drive past Warner Brothers, beyond the Disney lot and

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Speaker 3: actually learn a bit about the history, and then consider

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Speaker 3: the money that they're deploying to try and either catch

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Speaker 3: up with Netflix, frankly, or try and do something a

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Speaker 3: bit different. Caroline had fantastic conversation on stage with Amazon

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Speaker 3: last night. In the context of Prime you covered those names,

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Speaker 3: which do you think is ahead?

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Speaker 12: Well, if we're talking about winners clinically.

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Speaker 3: And I'm talking about video, you know, entertainment in the

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Speaker 3: context of film and television.

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Speaker 12: YouTube one, we're done.

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Speaker 13: Wow, Amazon's next, Amazon's on the prowl, it's coming up.

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Speaker 7: But on YouTube YouTube one. That's a definitive statement from you.

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Speaker 13: It is my point of view, ten percent of total

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Speaker 13: streaming viewing in Netflix's next at seven point five, so

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Speaker 13: YouTube is viewed both on the big screen. Because of

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Speaker 13: the NFL deal, they've now done and because user generated

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Speaker 13: contact on both mobile phones and on.

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Speaker 3: The connected I like data as much as the next person, Laura,

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Speaker 3: but you can be a bit more romantic than that

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Speaker 3: about you know. So I'm a massive rings of power.

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Speaker 3: I'm a massive rings of power nerd. And I was

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Speaker 3: trying to get Caroline into that.

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Speaker 7: I don't know, what do you think?

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Speaker 3: I find YouTube interesting, but I don't go there to

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Speaker 3: watch the content I'm super passionate about.

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Speaker 2: And so is that the element that we'll start to

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Speaker 2: see them bringing originals bringing I mean, at the moment

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Speaker 2: it's user generator content. We've got Amazon doing originals, movie making,

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Speaker 2: They're also doing live sports. What will YouTube end up

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Speaker 2: offering us?

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Speaker 13: Well, I remember when Survivor first launch, which was the

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Speaker 13: original reality program. I mean, everybody said, this is junk,

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Speaker 13: this is trash, This is never going to catch on.

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Speaker 13: You know, people who watch YouTube user generator.

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Speaker 12: Content think it's premium program.

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Speaker 13: I mean, you may not, but it turns out it

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Speaker 13: reaches global audiences on YouTube.

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Speaker 7: And I really believe in YouTube.

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Speaker 3: But I'm just talking about in the evening, when you

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Speaker 3: go home after work and you want to watch a

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Speaker 3: piece of television.

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Speaker 7: I'm not going to YouTube, But carry on, please, I.

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Speaker 13: Think anecdotal not statistical to suggest that sort of everybody.

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Speaker 13: I think something like eighty five percent of consumers that

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Speaker 13: watch video globally or on YouTube weekly, so their data

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Speaker 13: is really compelling.

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Speaker 5: Now on YouTube, I think, what's interesting you mentioned Survivor.

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Speaker 5: I'm actually having a.

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Speaker 2: Conversation later with unscripted executives for Peacock, and that's all

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Speaker 2: about Love Island and traitors and the new Age and Survivor.

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Speaker 5: What then of the Peacocks? What then of the paramounts,

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Speaker 5: what then.

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Speaker 2: Of be not Key Disney, Netflix, Amazon YouTube?

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Speaker 13: So I just think we need to think about the

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Speaker 13: job to be done, and the job to be done is.

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Speaker 12: To entertain consumers.

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Speaker 13: Now, consumers globally and certainly some consumers will sit through

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Speaker 13: two hour movies or one hour dramas or thirty minute sitcoms,

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Speaker 13: but they'll also sit through fifteen second TikTok videos or

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Speaker 13: thirty second three minute YouTube videos. I think all this

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Speaker 13: content is better for consumers, gives consumers more choice.

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Speaker 3: This is Bloomberg technology. Let's bring this back to business. Sure,

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Speaker 3: if you're an investor, how do you judge Netflix, Disney

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Speaker 3: and rank them? Is it the subscriber number and how

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Speaker 3: closely are we paying attention to those big, big figure

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Speaker 3: dollar figures right and spending on content right?

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Speaker 12: So I think what we need to look at.

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Speaker 13: What the market cares about today is return on invested capital,

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Speaker 13: including your content capital. So right now Netflix is the

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Speaker 13: only streamer making money. Wall Street cares about that. Disney

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Speaker 13: is recently Disney streaming has recently moved into profitability, and

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Speaker 13: especially on those apps, they're switching on the ads and

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Speaker 13: they are lowering their content costs. So I do think

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Speaker 13: that what we're seeing the problem is it's not Disney

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Speaker 13: isn't pure playing. What's happening in their parks margins is

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Speaker 13: just as important as what's happening in the streaming business.

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Speaker 13: And they have linear TV, so ESPN's super important too.

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Speaker 13: When you look at MBA rights doubling on the fees.

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Speaker 7: Can we talk a bit about advertising, Sure.

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Speaker 3: I find the job of your job really interesting because

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Speaker 3: there's something that you can't model for, which is the

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Speaker 3: psychology of a consumer. When I was a child, I

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Speaker 3: watched ads on TV and it was normal, And there

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Speaker 3: was a period of time during the pandemic where there

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Speaker 3: were no ads, and then suddenly everyone started doing it

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Speaker 3: and there.

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Speaker 7: Was a revolt. That actually seems like it's working.

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Speaker 1: Yep.

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Speaker 13: I think the consumer has to take he has to

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Speaker 13: judge his time as a valuable asset. So it's either

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Speaker 13: free with ads, which means you just took your time,

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Speaker 13: and because the streamers have much lower ad loads four minutes,

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Speaker 13: five minutes. Remember at cable tv it was like fourteen

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00:20:28,600 --> 00:20:31,240
Speaker 13: minute ad loads. Yes, so much lower ad loads, so

443
00:20:31,280 --> 00:20:33,880
Speaker 13: a lower price in a way for an hour of content.

444
00:20:34,119 --> 00:20:36,160
Speaker 13: And I really like some of the innovations where they'll

445
00:20:36,160 --> 00:20:38,120
Speaker 13: show you a video and then you get the next

446
00:20:38,119 --> 00:20:39,160
Speaker 13: program for free.

447
00:20:39,240 --> 00:20:41,000
Speaker 12: I love that because you get good.

448
00:20:40,880 --> 00:20:43,240
Speaker 13: Attention to the ad and you get half an hour

449
00:20:43,280 --> 00:20:44,280
Speaker 13: an hour of free content.

450
00:20:44,320 --> 00:20:46,359
Speaker 12: I think that's a great business model.

451
00:20:46,560 --> 00:20:48,440
Speaker 2: You know, we were just talking last week about M

452
00:20:48,480 --> 00:20:51,080
Speaker 2: and A out of necessity coming in.

453
00:20:51,200 --> 00:20:52,280
Speaker 5: Cable TV land.

454
00:20:52,520 --> 00:20:55,640
Speaker 2: Yes, where is the M and A going to start

455
00:20:55,680 --> 00:20:58,000
Speaker 2: switching on for these content providers because we've been.

456
00:20:57,960 --> 00:20:59,040
Speaker 5: Talking about it for years.

457
00:21:00,119 --> 00:21:02,919
Speaker 13: Unfortunately, you need a different president, you need a different

458
00:21:02,920 --> 00:21:06,600
Speaker 13: White House because the FCCFTC, and DOJ are all appointed

459
00:21:07,000 --> 00:21:09,960
Speaker 13: by the person by the party essentially in the White House,

460
00:21:10,280 --> 00:21:12,760
Speaker 13: and right now under Democrats, M and A is really

461
00:21:12,800 --> 00:21:15,320
Speaker 13: really hard because they believe big is bad, and so

462
00:21:15,520 --> 00:21:18,159
Speaker 13: even these companies that really do need to merge and

463
00:21:18,280 --> 00:21:21,400
Speaker 13: cut costs, they cannot do so as long as there's

464
00:21:21,440 --> 00:21:23,160
Speaker 13: a Democrat administration.

465
00:21:22,600 --> 00:21:23,280
Speaker 5: In the White House.

466
00:21:24,800 --> 00:21:29,359
Speaker 3: Medium Senior Entertainment analyst, Laura Martin, it's really fantastic to

467
00:21:29,400 --> 00:21:32,159
Speaker 3: do this in person. You've been on Bloomberg Technology so

468
00:21:32,320 --> 00:21:33,120
Speaker 3: many times.

469
00:21:33,320 --> 00:21:35,880
Speaker 5: Keep coming, please, and if.

470
00:21:35,800 --> 00:21:39,280
Speaker 3: You're just joining us, this is Bloomberg Technology on the

471
00:21:39,400 --> 00:21:48,800
Speaker 3: road in Hollywood.

472
00:21:51,640 --> 00:21:54,879
Speaker 2: Welcome back to a very special edition of BlueBag Technology.

473
00:21:54,920 --> 00:21:57,639
Speaker 2: We are live from Bloomberg screen Time right here in

474
00:21:57,680 --> 00:22:02,000
Speaker 2: the hearts Hollywood, Yeah, and Hollywood friends, and we're talking

475
00:22:02,040 --> 00:22:06,520
Speaker 2: there for content creation streaming. We were speaking in particular

476
00:22:06,520 --> 00:22:10,280
Speaker 2: about Amazon adding Apple TV Plus to its channel store

477
00:22:10,320 --> 00:22:12,480
Speaker 2: in the US, offering kits of course like ted Lasso

478
00:22:12,560 --> 00:22:15,520
Speaker 2: one that you love slow horses in the video supermarket.

479
00:22:15,560 --> 00:22:17,680
Speaker 2: For the first time, I got to chat with Mike

480
00:22:17,720 --> 00:22:19,960
Speaker 2: Hopkins last night. He's head of Amazon Prime Video and

481
00:22:20,040 --> 00:22:21,880
Speaker 2: Amazon MGM Studios.

482
00:22:21,920 --> 00:22:24,880
Speaker 5: Just take a listen about the deal. We've tried to.

483
00:22:24,840 --> 00:22:27,320
Speaker 14: Become over the last four or five years as a

484
00:22:27,359 --> 00:22:30,639
Speaker 14: first stop entertainment hub for consumers around the world. And

485
00:22:30,640 --> 00:22:32,439
Speaker 14: what I mean by that is, not only do we

486
00:22:32,480 --> 00:22:35,160
Speaker 14: have the prime content that we talked about at the top,

487
00:22:35,600 --> 00:22:38,200
Speaker 14: including Thursday night Football, we have our fourth game this

488
00:22:38,280 --> 00:22:42,000
Speaker 14: season tomorrow night, the NBA coming next year, NASCAR, but

489
00:22:42,080 --> 00:22:44,959
Speaker 14: around the world we also have Champions League throughout Europe

490
00:22:45,040 --> 00:22:47,960
Speaker 14: and a variety of sports as well. So we've got

491
00:22:47,960 --> 00:22:51,959
Speaker 14: our prime programming, but we also offer the world's largest

492
00:22:52,000 --> 00:22:54,919
Speaker 14: tea bod store written by movies and TV shows in

493
00:22:54,960 --> 00:22:57,160
Speaker 14: the world. And then on top of that, we have

494
00:22:57,240 --> 00:22:59,960
Speaker 14: over one hundred partner streaming services that you can subscribe

495
00:23:00,080 --> 00:23:03,320
Speaker 14: to right inside of our application. And what we found

496
00:23:03,400 --> 00:23:05,760
Speaker 14: is consumers. You know, if you think about the number

497
00:23:05,760 --> 00:23:08,080
Speaker 14: of apps and subscriptions you have, it's kind of hard

498
00:23:08,080 --> 00:23:09,720
Speaker 14: to keep track of it all. You're not sure exactly

499
00:23:09,760 --> 00:23:12,479
Speaker 14: where that show or a movie might be. And so

500
00:23:12,520 --> 00:23:15,159
Speaker 14: what we've noticed is people realize they can subscribe to

501
00:23:15,240 --> 00:23:20,040
Speaker 14: Max or Paramount Plus or Lead Pass or Crunchy Role,

502
00:23:20,080 --> 00:23:23,960
Speaker 14: et cetera inside of Prime Video. We see we see

503
00:23:23,960 --> 00:23:24,920
Speaker 14: a lot more engagement.

504
00:23:24,960 --> 00:23:25,800
Speaker 1: We are able to.

505
00:23:25,680 --> 00:23:28,960
Speaker 14: Get subscribers for those those those businesses at a real

506
00:23:29,000 --> 00:23:32,320
Speaker 14: attractive rate, and it's an exciting part of our business.

507
00:23:32,359 --> 00:23:35,400
Speaker 14: In fact, we're gonna announce tonight that we are adding

508
00:23:35,440 --> 00:23:40,960
Speaker 14: Apple TV Plus to our prime video channels propositions and sure, and.

509
00:23:42,240 --> 00:23:43,879
Speaker 5: Why why Apple TV Plus?

510
00:23:43,920 --> 00:23:46,239
Speaker 14: Well, they have great programming and you know, we've had

511
00:23:46,280 --> 00:23:48,480
Speaker 14: a good partnership with Apple on a number of fronts.

512
00:23:48,480 --> 00:23:50,639
Speaker 14: But you know, our companies do a lot of business together.

513
00:23:50,720 --> 00:23:53,360
Speaker 14: And I want to thank ADIEQ, who I know isn't

514
00:23:53,359 --> 00:23:55,159
Speaker 14: here tonight, but he hit his team have done a

515
00:23:55,160 --> 00:23:57,520
Speaker 14: great job with this deal and we're excited to get

516
00:23:57,520 --> 00:23:57,760
Speaker 14: it going.

517
00:24:02,000 --> 00:24:04,520
Speaker 3: That was Mike Hopkins, head of Amazon Prime Video and

518
00:24:04,600 --> 00:24:08,800
Speaker 3: Amazon MGM Studios and Amazon putting Apple TV Plus in there.

519
00:24:08,920 --> 00:24:09,520
Speaker 7: That is news.

520
00:24:09,640 --> 00:24:11,560
Speaker 5: Shout out to Eddie Q, and a shout.

521
00:24:11,320 --> 00:24:14,119
Speaker 7: Out to Eddie Q in our world. That is news.

522
00:24:14,600 --> 00:24:17,240
Speaker 3: Another player in the battle over streaming is pulling in

523
00:24:17,600 --> 00:24:21,400
Speaker 3: tens of millions of viewers without charging them a thing.

524
00:24:21,960 --> 00:24:25,040
Speaker 3: In the US, more than eighty one million people stream

525
00:24:25,080 --> 00:24:29,440
Speaker 3: content every month on twov the free ad supported platform which.

526
00:24:29,240 --> 00:24:30,000
Speaker 7: Is owned by Fox.

527
00:24:30,200 --> 00:24:34,040
Speaker 3: It's now expanding overseas, with the service launching across the

528
00:24:34,160 --> 00:24:38,840
Speaker 3: UK this summer. Our original home joining US now is

529
00:24:38,840 --> 00:24:42,880
Speaker 3: tvco Anderlei sud It's great to see you. The UK

530
00:24:43,000 --> 00:24:47,040
Speaker 3: is an interesting market. Just explain the basics why and

531
00:24:47,080 --> 00:24:47,879
Speaker 3: what's going to happen.

532
00:24:48,400 --> 00:24:51,240
Speaker 15: So we've been getting incredible traction in the US.

533
00:24:51,280 --> 00:24:52,120
Speaker 7: We just gave them name.

534
00:24:52,480 --> 00:24:55,359
Speaker 15: Yeah, we're the most watched free TV service in the

535
00:24:55,440 --> 00:24:59,080
Speaker 15: US now. And what we're finding is that audiences, particularly

536
00:24:59,160 --> 00:25:02,760
Speaker 15: chord cutters and nevers, they want to watch content for free.

537
00:25:03,160 --> 00:25:06,360
Speaker 15: They don't mind watching ads in return, and they want

538
00:25:06,680 --> 00:25:09,760
Speaker 15: a large collection of the term Sorry, card cutter and

539
00:25:10,040 --> 00:25:11,760
Speaker 15: cord nevers, I've not heard that.

540
00:25:11,920 --> 00:25:13,880
Speaker 5: Oh, I think it's it's almost like you going out

541
00:25:13,880 --> 00:25:14,359
Speaker 5: for gen Z.

542
00:25:14,600 --> 00:25:18,440
Speaker 15: Yeah, of audiences that just it's not that they originally

543
00:25:18,480 --> 00:25:20,840
Speaker 15: were subscribing to cable and stopped, is that they're just

544
00:25:20,960 --> 00:25:22,280
Speaker 15: they never did to begin with it.

545
00:25:22,400 --> 00:25:22,720
Speaker 7: Sorry.

546
00:25:23,640 --> 00:25:25,840
Speaker 15: And what we're finding is that t B has this

547
00:25:25,960 --> 00:25:28,560
Speaker 15: incredible formula. We're free for consumers. We have the world's

548
00:25:28,600 --> 00:25:31,800
Speaker 15: largest collection of movies and TV shows and it's resonating

549
00:25:31,800 --> 00:25:34,560
Speaker 15: with audiences, and we believe we can bring that same

550
00:25:35,720 --> 00:25:39,320
Speaker 15: value proposition to UK audiences. We've done the same in Canada,

551
00:25:39,359 --> 00:25:41,919
Speaker 15: we're doing the same in Latin America. Really it's a

552
00:25:41,920 --> 00:25:44,520
Speaker 15: global opportunity and that's what we're looking to first.

553
00:25:44,560 --> 00:25:48,120
Speaker 2: That does the content therefore evolved because do you therefore

554
00:25:48,320 --> 00:25:51,520
Speaker 2: have originals made by the UK in the UK for

555
00:25:51,600 --> 00:25:55,439
Speaker 2: the UK audience or are they very much global demandstrayt.

556
00:25:55,000 --> 00:25:58,040
Speaker 15: So TB has been able to successfully do a couple

557
00:25:58,080 --> 00:26:01,600
Speaker 15: of different things. One we license in are content from

558
00:26:01,720 --> 00:26:05,119
Speaker 15: really everyone, so we have this very vast selection of

559
00:26:05,160 --> 00:26:08,960
Speaker 15: opportunities and shows. We also have invested in originals. We

560
00:26:09,000 --> 00:26:11,720
Speaker 15: have hundreds of originals. Nearly one in four to be

561
00:26:11,800 --> 00:26:14,760
Speaker 15: viewers in the US watches an original, and so we

562
00:26:14,800 --> 00:26:17,159
Speaker 15: will absolutely look to have, well, which is one of

563
00:26:17,160 --> 00:26:19,840
Speaker 15: your original A to be original? A to be original?

564
00:26:20,080 --> 00:26:22,639
Speaker 15: And what's really interesting about to be originals is they

565
00:26:22,680 --> 00:26:26,440
Speaker 15: don't tend to be these big budget originals.

566
00:26:25,920 --> 00:26:27,600
Speaker 5: That you might see on other streamers.

567
00:26:28,000 --> 00:26:30,199
Speaker 15: What we often do is we will listen to what

568
00:26:30,320 --> 00:26:33,359
Speaker 15: is resonating on our platform, what our fans love, and

569
00:26:33,359 --> 00:26:36,320
Speaker 15: then we'll go and look to acquire or produce content

570
00:26:36,560 --> 00:26:39,280
Speaker 15: that really reflects something that they can't find anywhere else.

571
00:26:40,040 --> 00:26:43,119
Speaker 3: We should probably talk about the Fox element of this.

572
00:26:43,280 --> 00:26:45,520
Speaker 3: A lot of people are surprised by that. I think

573
00:26:45,680 --> 00:26:49,360
Speaker 3: we were partly how does that work? And I'm assuming

574
00:26:49,359 --> 00:26:51,359
Speaker 3: that undepending all of that is that if it's free

575
00:26:51,359 --> 00:26:55,359
Speaker 3: for the consumer. It's advertising that you've got to make

576
00:26:55,400 --> 00:26:56,159
Speaker 3: some money, right.

577
00:26:56,359 --> 00:27:00,080
Speaker 15: Yeah, So we only make money through advertising, which do

578
00:27:00,080 --> 00:27:03,320
Speaker 15: you think really aligns incentives because we only make money

579
00:27:03,320 --> 00:27:06,200
Speaker 15: if our viewers are engaged, if they're actually watching content.

580
00:27:06,760 --> 00:27:09,520
Speaker 15: TV is owned by Fox. It was acquired several years ago.

581
00:27:09,840 --> 00:27:13,440
Speaker 15: It's actually started in Silicon Valley over ten years ago.

582
00:27:13,880 --> 00:27:14,800
Speaker 12: Really interesting to be.

583
00:27:14,880 --> 00:27:18,000
Speaker 15: Started as an ad tech startup and then pivoted over

584
00:27:18,080 --> 00:27:21,640
Speaker 15: time to be a consumer streaming service. And what that

585
00:27:21,680 --> 00:27:25,240
Speaker 15: means is our DNA is very, very rich in using

586
00:27:25,280 --> 00:27:29,680
Speaker 15: technology and data to personalize and offer a delightful experience.

587
00:27:29,760 --> 00:27:32,359
Speaker 15: It's something I've been really impressed by and I think

588
00:27:32,400 --> 00:27:35,680
Speaker 15: it's a big differentiator right now because audiences also, they

589
00:27:35,760 --> 00:27:37,480
Speaker 15: don't want barriers, they don't want friction.

590
00:27:37,800 --> 00:27:39,359
Speaker 5: They want TV to feel fun again.

591
00:27:39,680 --> 00:27:41,679
Speaker 3: So you raise a really good point on the technology

592
00:27:42,320 --> 00:27:44,399
Speaker 3: in our household. At least, I have a Roku TV

593
00:27:44,680 --> 00:27:47,960
Speaker 3: and I have a Samsung Smart TV. On the Roku TV,

594
00:27:48,080 --> 00:27:50,600
Speaker 3: it's an AT based system. On the Smart TV, I

595
00:27:50,640 --> 00:27:52,720
Speaker 3: can search for a specific show that I want to

596
00:27:52,760 --> 00:27:55,480
Speaker 3: watch and it might tell me that the only place

597
00:27:55,480 --> 00:27:58,120
Speaker 3: I can find it is to be that My goodness

598
00:27:58,200 --> 00:28:01,560
Speaker 3: of options and and I'll be honest. You know, my

599
00:28:01,680 --> 00:28:03,639
Speaker 3: wife said to me the other day, you know, I

600
00:28:03,680 --> 00:28:06,600
Speaker 3: didn't know we had TV, and I said, maybe did I?

601
00:28:07,840 --> 00:28:10,560
Speaker 7: And that might You must kind of recognize that a

602
00:28:10,560 --> 00:28:11,000
Speaker 7: little bit.

603
00:28:11,200 --> 00:28:14,000
Speaker 5: Absolutely. I think there's a paradox of choice, and.

604
00:28:13,960 --> 00:28:16,960
Speaker 15: I think we in the streaming ecosystem haven't yet really

605
00:28:17,000 --> 00:28:19,199
Speaker 15: made it as easy for viewers as we need to.

606
00:28:19,960 --> 00:28:23,200
Speaker 15: Two B's approaches to be ubiquitous. So we are present

607
00:28:23,880 --> 00:28:27,399
Speaker 15: and available and accessible to consumers across over thirty devices,

608
00:28:27,720 --> 00:28:30,439
Speaker 15: every surface and screen that we can be on. And

609
00:28:30,480 --> 00:28:34,080
Speaker 15: to your point, having that really large library means that

610
00:28:34,160 --> 00:28:37,120
Speaker 15: we're often discoverable because we're the place you can watch

611
00:28:37,119 --> 00:28:39,240
Speaker 15: that content you're looking for for free.

612
00:28:39,560 --> 00:28:41,800
Speaker 5: And I think you're just going to see us continue.

613
00:28:41,360 --> 00:28:44,160
Speaker 15: To do more and more to just remove barriers and

614
00:28:44,240 --> 00:28:46,240
Speaker 15: make that experience easier and better.

615
00:28:46,080 --> 00:28:47,840
Speaker 5: So your market share keeps on going up.

616
00:28:47,840 --> 00:28:50,800
Speaker 2: I mean, you might not have been aware or using it,

617
00:28:50,840 --> 00:28:53,560
Speaker 2: but one point eight percent of the market is yours.

618
00:28:53,640 --> 00:28:56,400
Speaker 2: You're only just behind people, Kanhunu. When are you going

619
00:28:56,440 --> 00:28:57,240
Speaker 2: to eclipse them?

620
00:28:57,720 --> 00:28:59,960
Speaker 15: Honestly, you know, we're we are very focused on playing

621
00:29:00,080 --> 00:29:02,800
Speaker 15: one game and one game only, and that is being

622
00:29:02,880 --> 00:29:06,280
Speaker 15: free frictionless entertainment for consumers. But what I will say

623
00:29:06,360 --> 00:29:08,640
Speaker 15: is we are doubling down on the strategy. We believe

624
00:29:08,640 --> 00:29:11,000
Speaker 15: it's working. We think the tailwinds in our favor, and

625
00:29:11,040 --> 00:29:12,560
Speaker 15: it's on us to continue to deliver.

626
00:29:12,760 --> 00:29:14,840
Speaker 7: Where does live sports fit into your strategy?

627
00:29:15,400 --> 00:29:20,160
Speaker 15: We are not investing in premium live sports rights. That

628
00:29:19,880 --> 00:29:22,480
Speaker 15: is that's very expensive, and our belief is that's not

629
00:29:22,520 --> 00:29:24,600
Speaker 15: going to really work on a free, ad supported model

630
00:29:24,640 --> 00:29:26,520
Speaker 15: the way it does in other models. But what you

631
00:29:26,600 --> 00:29:29,240
Speaker 15: will see us do is partner with Fox Sports in

632
00:29:29,280 --> 00:29:33,160
Speaker 15: particular to really tell stories in and around the culture

633
00:29:33,600 --> 00:29:36,320
Speaker 15: of sports. An example is this week we announced a

634
00:29:36,360 --> 00:29:40,480
Speaker 15: talk show with Dean Sanders coach Prime. You'll also see

635
00:29:40,560 --> 00:29:44,400
Speaker 15: us do a purple carpet sort of pregame show before

636
00:29:44,400 --> 00:29:46,880
Speaker 15: the Super Bowl this year that kind of talks about

637
00:29:46,960 --> 00:29:50,440
Speaker 15: fashion and celebrity culture around the game, and we'll continue

638
00:29:50,440 --> 00:29:53,560
Speaker 15: to experiment there. But what we see, particularly among younger

639
00:29:53,760 --> 00:29:57,200
Speaker 15: viewers gen Z, is that they're very interested in stories

640
00:29:57,240 --> 00:30:00,240
Speaker 15: and culture around sports, almost as much as the live

641
00:30:00,280 --> 00:30:00,880
Speaker 15: game itself.

642
00:30:00,960 --> 00:30:03,160
Speaker 2: Yeah, very briefly, do you want an oscar? Do you

643
00:30:03,200 --> 00:30:05,640
Speaker 2: want to like have an original make a big bang?

644
00:30:06,440 --> 00:30:08,120
Speaker 5: I want to produce content.

645
00:30:08,040 --> 00:30:11,320
Speaker 15: That delights our viewers, and I would say we care

646
00:30:11,400 --> 00:30:14,640
Speaker 15: a lot more about that engagement as our currency, probably

647
00:30:14,680 --> 00:30:16,080
Speaker 15: above awards or anything.

648
00:30:15,800 --> 00:30:19,600
Speaker 2: Else, don'tkay to Angelie, so so nice to have some

649
00:30:19,640 --> 00:30:20,040
Speaker 2: time with you.

650
00:30:20,440 --> 00:30:22,560
Speaker 5: We thank him. Meanwhile, coming up, we dive.

651
00:30:22,440 --> 00:30:26,760
Speaker 2: Into your favorite the gaming industry, folks, Mike Morheims with us,

652
00:30:26,760 --> 00:30:28,960
Speaker 2: the co founder of Blizzard Entertainment. Boy, if we got

653
00:30:28,960 --> 00:30:31,520
Speaker 2: some chats. He's now needing his own game developer startup

654
00:30:31,520 --> 00:30:32,480
Speaker 2: and some new content coming.

655
00:30:33,120 --> 00:30:35,360
Speaker 3: Yeah, it was a big part of my childhood some

656
00:30:35,440 --> 00:30:39,280
Speaker 3: of his work. I'm super excited. Last night, Snoop Dog

657
00:30:39,640 --> 00:30:43,280
Speaker 3: also sat down with Blimbers Lucashaw to discuss this new album.

658
00:30:43,000 --> 00:30:46,040
Speaker 7: But also my childhood, my child your childhood.

659
00:30:46,040 --> 00:30:48,440
Speaker 3: But also you probably saw it his experience at the

660
00:30:48,520 --> 00:30:50,040
Speaker 3: Olympics over the summer.

661
00:30:50,160 --> 00:30:51,080
Speaker 7: Just check this out.

662
00:30:51,800 --> 00:30:54,800
Speaker 15: The NBC was and the Olympics was willing to allow

663
00:30:54,920 --> 00:30:57,480
Speaker 15: us to bring our flavor to the table.

664
00:30:57,520 --> 00:30:59,080
Speaker 7: And I try to keep us in the box and

665
00:30:59,160 --> 00:31:00,840
Speaker 7: let us, you know, season and meat.

666
00:31:15,080 --> 00:31:21,160
Speaker 3: Blizzard co founder industry veteran Mike Morheims working to replicate

667
00:31:21,440 --> 00:31:25,080
Speaker 3: the video game studio's success, but without making some of

668
00:31:25,120 --> 00:31:30,760
Speaker 3: the mistakes that have impacted the company's reputation in recent years,

669
00:31:30,760 --> 00:31:34,200
Speaker 3: in particular and in particular the culture. Mike's new company

670
00:31:34,360 --> 00:31:38,840
Speaker 3: is dream Haven. It is announcing a new title literally today.

671
00:31:39,640 --> 00:31:42,600
Speaker 3: It has not said very much at all since kind

672
00:31:42,600 --> 00:31:44,840
Speaker 3: of starting in twenty twenty, and I'm delighted to say

673
00:31:44,840 --> 00:31:46,440
Speaker 3: that Mike's here with us in person.

674
00:31:47,200 --> 00:31:47,880
Speaker 7: We can go into the.

675
00:31:47,880 --> 00:31:52,040
Speaker 3: Backstory of Blizzard, and we can go into how for

676
00:31:52,160 --> 00:31:54,760
Speaker 3: many people watching this show around the world, some of

677
00:31:54,760 --> 00:31:56,720
Speaker 3: the original Blizzard titles and I'm a child with the

678
00:31:56,800 --> 00:32:00,520
Speaker 3: nineties is a big part of their video games history.

679
00:32:00,880 --> 00:32:03,360
Speaker 3: But let's start with what's new today. Okay, you have

680
00:32:03,400 --> 00:32:06,040
Speaker 3: a title out, sunder Folk. It is the kind of

681
00:32:06,080 --> 00:32:09,040
Speaker 3: big moment for your studio, which you founded in twenty twenty.

682
00:32:09,640 --> 00:32:14,280
Speaker 3: The basics of the game and why it's important, why

683
00:32:14,320 --> 00:32:16,240
Speaker 3: it will stand out in this field.

684
00:32:16,600 --> 00:32:19,160
Speaker 9: So so yeah, this is a big moment for us

685
00:32:19,200 --> 00:32:23,800
Speaker 9: because we've been heads down working on two games internally

686
00:32:23,800 --> 00:32:26,520
Speaker 9: at dream Haven through our Secret Door studio and Moonshot.

687
00:32:26,560 --> 00:32:29,160
Speaker 9: So Secret Door just announced their first game. It's called

688
00:32:29,560 --> 00:32:34,440
Speaker 9: sunder Folk. It is a touch co op tactical RPG

689
00:32:35,240 --> 00:32:38,320
Speaker 9: adventure that you can play with your friends. Really inspired

690
00:32:38,360 --> 00:32:41,200
Speaker 9: by the magic of tabletop.

691
00:32:40,680 --> 00:32:43,520
Speaker 7: Gaming, and this is a twenty twenty five thing.

692
00:32:43,760 --> 00:32:45,480
Speaker 9: Just this is a twenty twenty five thing. So we

693
00:32:45,640 --> 00:32:47,960
Speaker 9: just revealed what we've been working on all of this time,

694
00:32:48,320 --> 00:32:52,200
Speaker 9: and we're super excited about it. Some of the unique

695
00:32:52,200 --> 00:32:56,400
Speaker 9: things about this game it uses two screens, a personal

696
00:32:56,440 --> 00:32:59,800
Speaker 9: screen which is basically your phone in your pocket, and

697
00:33:00,400 --> 00:33:05,040
Speaker 9: shared screen. And we're really trying to replicate the magic

698
00:33:05,080 --> 00:33:11,040
Speaker 9: of tabletop and RPG adventure gaming without some of the

699
00:33:11,080 --> 00:33:14,080
Speaker 9: barriers that really make it inaccessible to a lot of people.

700
00:33:14,120 --> 00:33:17,920
Speaker 9: You know, the thick manuals, the setup time. If you

701
00:33:18,200 --> 00:33:21,320
Speaker 9: look at some of these games, sometimes you're taking you

702
00:33:21,400 --> 00:33:24,360
Speaker 9: have to spend an hour learning the rules, to teach

703
00:33:24,400 --> 00:33:26,080
Speaker 9: your friends how to play the game.

704
00:33:26,280 --> 00:33:30,080
Speaker 7: I mean that is MMO RPG classic. That's the point

705
00:33:30,080 --> 00:33:30,400
Speaker 7: of it.

706
00:33:31,000 --> 00:33:32,560
Speaker 9: That is not the point of it, Okay, it is

707
00:33:32,600 --> 00:33:33,040
Speaker 9: to get in and.

708
00:33:33,240 --> 00:33:36,560
Speaker 7: He need to disagree, keep going, yeah, and have.

709
00:33:36,560 --> 00:33:37,440
Speaker 5: Fun with your friends.

710
00:33:37,440 --> 00:33:40,720
Speaker 9: And so we really kind of streamlined that whole experience

711
00:33:41,040 --> 00:33:45,400
Speaker 9: to try to make game Night accessible to more people

712
00:33:45,400 --> 00:33:47,440
Speaker 9: and so and to also give tools to the people

713
00:33:47,680 --> 00:33:50,200
Speaker 9: really passionate about this genre to be able to bring

714
00:33:50,200 --> 00:33:54,200
Speaker 9: in their friends who may not have experienced the magic.

715
00:33:53,920 --> 00:33:56,520
Speaker 2: Of table talk people building that and Sokile and what

716
00:33:56,640 --> 00:34:00,320
Speaker 2: so interesting is this is a full year project. She've

717
00:34:00,320 --> 00:34:03,440
Speaker 2: been some in stealth. What is the heavy lift that

718
00:34:03,520 --> 00:34:06,120
Speaker 2: goes into bringing us under Folk to bringing us the

719
00:34:06,160 --> 00:34:07,400
Speaker 2: other game that you got lined up?

720
00:34:08,560 --> 00:34:11,640
Speaker 9: I think that, I mean one of the big challenges.

721
00:34:11,680 --> 00:34:14,920
Speaker 9: Whenever you're doing something innovative that hasn't been done before,

722
00:34:15,200 --> 00:34:20,240
Speaker 9: there's a lot of trial and error and iteration. Often

723
00:34:20,840 --> 00:34:23,279
Speaker 9: you come up with the design, you think it's going

724
00:34:23,360 --> 00:34:25,600
Speaker 9: to be great, and then when you actually start playing it,

725
00:34:25,640 --> 00:34:27,600
Speaker 9: you find that there are a lot of things that

726
00:34:27,640 --> 00:34:29,600
Speaker 9: maybe aren't working as well as you thought, or aren't

727
00:34:29,600 --> 00:34:32,040
Speaker 9: as fun as you thought. And so it's just very

728
00:34:32,080 --> 00:34:39,160
Speaker 9: iterative to go and try things, play them, and then evolve,

729
00:34:39,239 --> 00:34:41,440
Speaker 9: and sometimes you have to make big course corrections or

730
00:34:41,440 --> 00:34:42,319
Speaker 9: pivots along the way.

731
00:34:42,440 --> 00:34:45,280
Speaker 5: Who are you trying to build games for. Here's your demographic.

732
00:34:45,520 --> 00:34:48,000
Speaker 9: We're trying to go for a really broad audience. So

733
00:34:48,400 --> 00:34:53,080
Speaker 9: we try to make games that have depth, for a

734
00:34:53,080 --> 00:34:55,640
Speaker 9: lot of replayability and for people who really want to

735
00:34:56,360 --> 00:35:01,000
Speaker 9: who are really familiar with these genres, with accessibility. Even

736
00:35:01,040 --> 00:35:04,279
Speaker 9: if you're not familiar, it's really yeah, I would love

737
00:35:04,320 --> 00:35:06,000
Speaker 9: for you to play our games.

738
00:35:06,120 --> 00:35:08,239
Speaker 3: It would be an interesting experiment to do that, right,

739
00:35:08,239 --> 00:35:08,840
Speaker 3: to play together.

740
00:35:08,880 --> 00:35:10,160
Speaker 7: I mean, if you're just tuning in.

741
00:35:10,600 --> 00:35:13,040
Speaker 3: This has been big technology in Hollywood for screen time,

742
00:35:13,280 --> 00:35:17,640
Speaker 3: and Mike Morheim and his colleagues are the people behind

743
00:35:17,719 --> 00:35:21,120
Speaker 3: Diablo and Warcraft and those games in the nineties two

744
00:35:21,160 --> 00:35:24,880
Speaker 3: thousand and four Warcraft rethink subscription model. I mean you

745
00:35:26,200 --> 00:35:29,440
Speaker 3: were behind it and then skeptical about how that would grow.

746
00:35:31,000 --> 00:35:33,040
Speaker 3: Let's put that to one side, because it isn't the

747
00:35:33,080 --> 00:35:36,560
Speaker 3: nineties or two thousands anymore. It seems to me really

748
00:35:36,640 --> 00:35:41,880
Speaker 3: hard to run an independent games studio and publishing shop

749
00:35:41,960 --> 00:35:42,440
Speaker 3: right now.

750
00:35:42,560 --> 00:35:48,360
Speaker 9: How hard well, Game development has always been very difficult

751
00:35:49,440 --> 00:35:53,680
Speaker 9: in our experience. I don't think there's ever been a

752
00:35:53,680 --> 00:35:55,800
Speaker 9: project that has been sort of like, we know what

753
00:35:55,840 --> 00:35:58,600
Speaker 9: we're making, we go and make it and it's just great.

754
00:35:58,640 --> 00:36:02,399
Speaker 9: It's just always has these zigs and zags along the way.

755
00:36:02,719 --> 00:36:06,439
Speaker 9: And I think where we've been successful is really being

756
00:36:07,760 --> 00:36:12,919
Speaker 9: reactive to what the games have told us that they

757
00:36:12,960 --> 00:36:16,200
Speaker 9: need in order to achieve their potential. And we always

758
00:36:16,560 --> 00:36:20,680
Speaker 9: have gone through a process where we continue to bring

759
00:36:20,719 --> 00:36:24,279
Speaker 9: in fresh people with fresh perspectives yes to experience the

760
00:36:24,320 --> 00:36:27,080
Speaker 9: game and observe how they interact with it, where are

761
00:36:27,080 --> 00:36:29,759
Speaker 9: they getting stuck, what doesn't make sense, and try to

762
00:36:29,800 --> 00:36:30,759
Speaker 9: really streamline that.

763
00:36:30,840 --> 00:36:33,239
Speaker 7: Onboarding, Mike, let's talk about this industry.

764
00:36:34,320 --> 00:36:39,239
Speaker 3: The backstory is that Lizard merged with Activision. I just

765
00:36:39,280 --> 00:36:42,239
Speaker 3: want to ask that, at the conclusion of Activision being

766
00:36:42,280 --> 00:36:46,920
Speaker 3: acquired by Microsoft, how you feel that left the industry,

767
00:36:47,320 --> 00:36:51,200
Speaker 3: What the significance of it was for video games.

768
00:36:52,040 --> 00:36:54,200
Speaker 9: I think we don't know the answer to that yet.

769
00:36:54,760 --> 00:36:57,840
Speaker 9: I think it's still early because you're going to have

770
00:36:57,920 --> 00:37:00,200
Speaker 9: to see how.

771
00:37:02,880 --> 00:37:04,320
Speaker 5: How Blizzard is able.

772
00:37:04,080 --> 00:37:08,960
Speaker 9: To operate within that new environment and whether it's an

773
00:37:09,040 --> 00:37:12,840
Speaker 9: environment that will still allow it to continue innovating.

774
00:37:13,680 --> 00:37:16,719
Speaker 5: We referenced at the start you built.

775
00:37:17,160 --> 00:37:22,520
Speaker 2: A legendary business in gaming that many people grew up with.

776
00:37:23,280 --> 00:37:24,560
Speaker 5: It's hard running businesses.

777
00:37:24,560 --> 00:37:26,520
Speaker 2: What are the lessons you learned from Blizzard that you're

778
00:37:26,560 --> 00:37:29,759
Speaker 2: either bringing over or not doing in the new agreat.

779
00:37:29,520 --> 00:37:31,480
Speaker 7: That you want to avoid the mistakes of the past on.

780
00:37:32,280 --> 00:37:33,760
Speaker 5: Yeah, So I mean that's two parts.

781
00:37:33,800 --> 00:37:35,840
Speaker 9: I think some of the things we are definitely we

782
00:37:36,000 --> 00:37:40,120
Speaker 9: want to bring over is we think that, look, gaming

783
00:37:40,200 --> 00:37:43,840
Speaker 9: is a very competitive business. There's something like fifteen thousand

784
00:37:43,960 --> 00:37:48,160
Speaker 9: games that are releasing each year on Steam alone, and

785
00:37:48,360 --> 00:37:51,560
Speaker 9: so in order to sort of stand out, you really

786
00:37:51,600 --> 00:37:56,759
Speaker 9: have to do something different better, and so really having

787
00:37:56,800 --> 00:37:59,960
Speaker 9: a focus on creating high quality experiences. We really believe

788
00:38:00,040 --> 00:38:02,480
Speaker 9: in the power of gaming to bring people together and

789
00:38:02,640 --> 00:38:05,400
Speaker 9: that's what motivates us. And so I think we are

790
00:38:05,440 --> 00:38:09,600
Speaker 9: always thinking about how to make the games as good

791
00:38:09,600 --> 00:38:13,440
Speaker 9: as they can be with a view on what the players,

792
00:38:14,040 --> 00:38:16,680
Speaker 9: what we as players want to see from those games,

793
00:38:16,680 --> 00:38:19,000
Speaker 9: and I think that that's kind of we just always

794
00:38:19,040 --> 00:38:23,200
Speaker 9: want to keep that mindset. I think, you know, with

795
00:38:23,360 --> 00:38:25,000
Speaker 9: dream Haven, one of the things we want to do,

796
00:38:25,000 --> 00:38:28,520
Speaker 9: we want to create an environment that allows individuals to

797
00:38:28,520 --> 00:38:33,880
Speaker 9: do their best work so and to feel like and

798
00:38:33,920 --> 00:38:37,200
Speaker 9: to have these studios feel like they're in control of

799
00:38:37,239 --> 00:38:42,080
Speaker 9: their destiny and to feel agency and responsible for that

800
00:38:42,160 --> 00:38:44,840
Speaker 9: so that they can, you know, steer their ship in

801
00:38:44,920 --> 00:38:46,040
Speaker 9: the right the right ways.

802
00:38:46,760 --> 00:38:48,640
Speaker 5: Mike, it's been so good having you.

803
00:38:48,680 --> 00:38:52,880
Speaker 2: Thank you very much, dream Haven CEO with a new title, Michaelheim,

804
00:38:53,040 --> 00:39:04,760
Speaker 2: We thank him.

805
00:39:04,880 --> 00:39:08,680
Speaker 3: Let's recap for video game fans. Blizzard Entertainment was a

806
00:39:08,719 --> 00:39:11,960
Speaker 3: household name, The maker of Overwatch and World of Warcraft

807
00:39:12,280 --> 00:39:16,560
Speaker 3: changed the video game landscape until corporate Pair and Activision

808
00:39:16,640 --> 00:39:20,400
Speaker 3: started cracking down on Blizzard's autonomy. We've just been speaking

809
00:39:20,680 --> 00:39:23,680
Speaker 3: with one of the executives at the heart of the story,

810
00:39:23,680 --> 00:39:27,000
Speaker 3: and it was all chronicled in a new book, play Nice,

811
00:39:27,360 --> 00:39:31,279
Speaker 3: the Rise, Full and Future of Blizzard Entertainment, which just

812
00:39:31,360 --> 00:39:32,240
Speaker 3: came out this week.

813
00:39:32,560 --> 00:39:34,400
Speaker 7: Author and Bloomberg.

814
00:39:33,920 --> 00:39:36,759
Speaker 3: News reporter Jason Schreyer is here with us in Hollywood.

815
00:39:37,200 --> 00:39:40,200
Speaker 16: I'm here, Hello, Ed, and it's great to be here.

816
00:39:40,840 --> 00:39:44,760
Speaker 3: I was going over with Mike some of the history

817
00:39:44,800 --> 00:39:47,680
Speaker 3: of Blizzard. I was a child of the nineties. The

818
00:39:47,760 --> 00:39:51,720
Speaker 3: titles your book goes inside the company, what was happening

819
00:39:51,760 --> 00:39:53,200
Speaker 3: in the ninety two thousands?

820
00:39:53,440 --> 00:39:56,120
Speaker 7: Where would you like to start? And what's inside the pages?

821
00:39:56,280 --> 00:39:57,200
Speaker 16: It's really two stories.

822
00:39:57,200 --> 00:39:57,760
Speaker 1: It's a story.

823
00:39:57,760 --> 00:40:00,759
Speaker 16: It's a culture story and a business story. Both they

824
00:40:00,800 --> 00:40:02,239
Speaker 16: go in some wild directions.

825
00:40:02,280 --> 00:40:02,840
Speaker 1: You see.

826
00:40:03,200 --> 00:40:06,200
Speaker 16: The book traces the history of Lizard from nineteen ninety

827
00:40:06,200 --> 00:40:08,200
Speaker 16: one when it was founded, all the way up until

828
00:40:08,239 --> 00:40:11,000
Speaker 16: today when it was bought by Microsoft in a sixty

829
00:40:11,080 --> 00:40:14,680
Speaker 16: nine billion dollar acquisition. Still kind of unfathomable, right, It's

830
00:40:14,719 --> 00:40:17,440
Speaker 16: still unimaginable that that happened. And what I do is

831
00:40:17,440 --> 00:40:20,359
Speaker 16: I trace the culture, the way that people treated the place,

832
00:40:20,360 --> 00:40:22,320
Speaker 16: the way of the company, what it was like to

833
00:40:22,360 --> 00:40:22,920
Speaker 16: work there.

834
00:40:22,920 --> 00:40:24,840
Speaker 7: So really quick good culture of bad culture.

835
00:40:24,920 --> 00:40:27,319
Speaker 16: I try not to be reductive because for a lot

836
00:40:27,320 --> 00:40:28,239
Speaker 16: of people is really good.

837
00:40:28,239 --> 00:40:29,440
Speaker 12: For a lot of people, it was really bad for

838
00:40:29,480 --> 00:40:31,840
Speaker 12: a lot of peoples, both a lot of women.

839
00:40:31,880 --> 00:40:33,799
Speaker 16: For example, there have been a lot of discussions about

840
00:40:33,840 --> 00:40:35,839
Speaker 16: how Bizard treated women in the wake of this made

841
00:40:35,920 --> 00:40:37,480
Speaker 16: lawsuit that hit the company.

842
00:40:38,080 --> 00:40:40,200
Speaker 12: A lot of women felt like at times.

843
00:40:39,880 --> 00:40:41,440
Speaker 16: It was the best place in the world, and at

844
00:40:41,480 --> 00:40:43,600
Speaker 16: times it was just really awful, and they were treated,

845
00:40:44,280 --> 00:40:47,719
Speaker 16: they were harass they were discriminated against. But sometimes I mean,

846
00:40:48,000 --> 00:40:49,239
Speaker 16: one woman I talked to you told me that she

847
00:40:49,320 --> 00:40:52,040
Speaker 16: messed some of her best friends in the world, people

848
00:40:52,040 --> 00:40:54,520
Speaker 16: who were in her wedding party at Wizard, But at

849
00:40:54,520 --> 00:40:56,399
Speaker 16: the same time she had to deal with like getting

850
00:40:56,440 --> 00:40:57,800
Speaker 16: paid less than her male colleagues.

851
00:40:57,800 --> 00:41:01,000
Speaker 2: What Mike Moheim has now built his venture with his

852
00:41:01,120 --> 00:41:04,960
Speaker 2: wife Yep and his many ways trying to push against

853
00:41:04,960 --> 00:41:08,400
Speaker 2: some of the tougher experiences he had built in a

854
00:41:08,440 --> 00:41:08,879
Speaker 2: new way.

855
00:41:09,080 --> 00:41:11,640
Speaker 5: One of the lessons being learnt by the industry right now.

856
00:41:11,680 --> 00:41:12,279
Speaker 12: Yeah, it's funny.

857
00:41:12,320 --> 00:41:14,360
Speaker 5: I actually went and visited their studio last night, and.

858
00:41:14,360 --> 00:41:15,440
Speaker 12: I think it's really interesting.

859
00:41:15,480 --> 00:41:17,440
Speaker 1: One thing that really struck me about.

860
00:41:17,239 --> 00:41:20,240
Speaker 16: Dreamhaven, their new venture, is that they have about thirty

861
00:41:20,280 --> 00:41:23,960
Speaker 16: seven percent of their employees identify as either women or

862
00:41:23,960 --> 00:41:26,760
Speaker 16: non binary, as opposed to a company like Blizzard. When

863
00:41:26,800 --> 00:41:30,160
Speaker 16: they were founded, it was zero percent. Essentially, maybe they're

864
00:41:30,239 --> 00:41:32,279
Speaker 16: lucky to get one or two women over the course

865
00:41:32,320 --> 00:41:34,800
Speaker 16: of the nineties. Of course, the entire video game industry

866
00:41:34,960 --> 00:41:38,160
Speaker 16: was in a very different place back then, But now

867
00:41:38,239 --> 00:41:40,080
Speaker 16: I think they're working hard to be more inclusive.

868
00:41:40,120 --> 00:41:41,560
Speaker 1: I think a lot of game companies, I mean.

869
00:41:41,440 --> 00:41:46,440
Speaker 16: It's like very slow, gradual steps towards not being sexist

870
00:41:46,560 --> 00:41:50,000
Speaker 16: and not being like crummy towards your workers, but they

871
00:41:50,040 --> 00:41:50,920
Speaker 16: are making progress.

872
00:41:50,920 --> 00:41:52,280
Speaker 12: And you know what, I think a lot more people

873
00:41:52,360 --> 00:41:53,480
Speaker 12: these days are.

874
00:41:53,360 --> 00:41:56,560
Speaker 16: Willing to call out companies that don't treat them well,

875
00:41:56,560 --> 00:41:58,240
Speaker 16: and I think that has led to some changes.

876
00:41:58,520 --> 00:41:59,080
Speaker 7: Just one point.

877
00:41:59,400 --> 00:42:02,520
Speaker 3: We hate talking about this because video games industry is

878
00:42:02,560 --> 00:42:06,560
Speaker 3: a huge industry movies, and it's important to always remind

879
00:42:06,560 --> 00:42:07,279
Speaker 3: ourselves of that.

880
00:42:07,560 --> 00:42:09,880
Speaker 2: It's a key screen that we're all addicted to, the

881
00:42:10,040 --> 00:42:12,799
Speaker 2: gaming screen. Jason's going to be here at screen time

882
00:42:12,920 --> 00:42:13,680
Speaker 2: doing an interview.

883
00:42:13,760 --> 00:42:15,680
Speaker 5: I'm sure, Yes, I'm talking to Mike Morehome.

884
00:42:15,719 --> 00:42:17,040
Speaker 12: Actually I get them after you.

885
00:42:16,920 --> 00:42:19,719
Speaker 2: Guys, there we have it. But this whole day, it's

886
00:42:19,760 --> 00:42:21,840
Speaker 2: going to be amazing. There's gonna be so many people.

887
00:42:21,880 --> 00:42:23,680
Speaker 2: You want to be listening from Scooter Blaun, it's going

888
00:42:23,760 --> 00:42:25,760
Speaker 2: to be here, going to hear of course, the CEO

889
00:42:25,880 --> 00:42:28,600
Speaker 2: of Comcast coming on. You don't want to miss what's

890
00:42:28,640 --> 00:42:29,040
Speaker 2: going on.

891
00:42:29,160 --> 00:42:32,920
Speaker 3: And tomorrow, Long Beach, we are talking defense, we're talking space.

892
00:42:33,000 --> 00:42:36,480
Speaker 3: We are live from Rocket Lab. Do not miss that

893
00:42:36,560 --> 00:42:38,680
Speaker 3: Bloomberg Technology see as soon