WEBVTT - Bloomberg Screentime Special 0:00:01.280 --> 0:00:05.120 We're from BHARD. We're Innovation, Money and Power Collie in 0:00:05.240 --> 0:00:10.160 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.200 --> 0:00:11.080 and Ed Ludlow. 0:00:28.160 --> 0:00:31.800 Welcome to a special edition of Bloomberg Technology Live from 0:00:31.800 --> 0:00:34.680 Bloomberg screen Time in Los Angeles. Coming up this hour, 0:00:35.000 --> 0:00:37.280 we'll bring you conversations from some of the biggest names 0:00:37.280 --> 0:00:38.559 in the entertainment industry. 0:00:39.040 --> 0:00:42.000 So today we're going to be speaking with top celebrities, entrepreneurs, 0:00:42.360 --> 0:00:45.959 moguls across what is a changing media landscape. And we're 0:00:45.960 --> 0:00:50.200 starting with Bloomberg's Lucas Shaw, the managing editor who leads 0:00:50.200 --> 0:00:53.720 screen Time, our own celebrity exactly. And screen time is 0:00:54.520 --> 0:00:58.040 the coverage of popular culture. It is a huge global 0:00:58.080 --> 0:01:00.640 industry and it kicked off last night with Live Nation. 0:01:01.160 --> 0:01:04.560 Mike Rippino and I came to realize something sitting in 0:01:04.600 --> 0:01:08.679 the audience that Live Nation is peerless. If you think 0:01:08.720 --> 0:01:12.280 about its business concerts is one fastest of it around 0:01:12.319 --> 0:01:15.679 the world. It was such an engaging conversation. Honestly, it 0:01:15.800 --> 0:01:19.000 was a CEO of a company that was refreshingly honest. 0:01:19.360 --> 0:01:21.240 You did the interview, you talk about it. Where do 0:01:21.280 --> 0:01:21.959 you want to go with that? 0:01:22.000 --> 0:01:24.720 Well, look to your point, he has no peers, and 0:01:24.760 --> 0:01:27.160 I think he also serves sort of like a founder. 0:01:27.440 --> 0:01:29.880 Like I find that founders are more candidate interviews because 0:01:29.880 --> 0:01:31.720 they kind of don't care. They don't have as many 0:01:31.720 --> 0:01:34.240 people that answer to. And he's been running that business 0:01:34.240 --> 0:01:35.559 now for almost twenty years. 0:01:35.760 --> 0:01:35.920 Right. 0:01:36.120 --> 0:01:38.160 They are the biggest concert promoter in the world by 0:01:38.280 --> 0:01:40.600 a wide mile. They're the biggest ticket seller because a 0:01:40.600 --> 0:01:43.480 ticketmaster by a lot. He knows that, he's confident. He 0:01:43.480 --> 0:01:45.759 has relationships with every artist. When they want to know 0:01:46.040 --> 0:01:48.040 what should I do with my tour? They call him, 0:01:48.360 --> 0:01:50.160 and so he can be a little you know, he 0:01:50.200 --> 0:01:52.720 can poke fun at the government which is suing him 0:01:52.760 --> 0:01:54.520 right now. He can do things like that in a 0:01:54.560 --> 0:01:56.160 way that I don't think other CEOs can. 0:01:56.560 --> 0:01:58.160 But he can poke the bear. 0:01:58.240 --> 0:02:00.440 But the bear wants to spin up this size and 0:02:00.480 --> 0:02:01.840 scale that he's managed to build up. 0:02:01.840 --> 0:02:04.080 And so what was his reaction to all of this? 0:02:04.520 --> 0:02:05.600 Well, I thought it was interesting. 0:02:05.640 --> 0:02:08.560 I asked him, as a way of get into the 0:02:08.600 --> 0:02:11.519 DOJ question, if he would sell Ticketmaster, which is something 0:02:11.560 --> 0:02:13.000 that the DJ would like him to do. 0:02:13.080 --> 0:02:13.200 Right. 0:02:13.240 --> 0:02:15.600 They want to break up Live Nation and Ticketmaster, which 0:02:15.639 --> 0:02:17.400 is sort of where this all started with a merger 0:02:17.840 --> 0:02:20.480 many years ago. He's like, some days, yes, because Ticketmaster 0:02:20.800 --> 0:02:23.119 is the biggest pain for him. That's when fans get 0:02:23.120 --> 0:02:25.600 mad when tickets still get sold. But if you talk 0:02:25.680 --> 0:02:27.760 to anyone at the company, they're pretty confident that they're 0:02:27.760 --> 0:02:29.480 going to win this DOJ suit because they don't think 0:02:29.480 --> 0:02:32.760 that the DOJ really understands the music business. And I think, 0:02:32.800 --> 0:02:34.960 if they were being honest, they're also maybe kind of 0:02:34.960 --> 0:02:37.160 hoping that the people in charge of the DOJ will 0:02:37.160 --> 0:02:38.520 be different by the time this is done. 0:02:38.720 --> 0:02:41.200 So what you did well, and if you're just joining us, right, 0:02:41.320 --> 0:02:44.720 what we're talking about is media and entertainment. But a 0:02:44.760 --> 0:02:48.200 company that's been in the headlines because of Taylor Swift 0:02:48.200 --> 0:02:50.440 and then Oasis, But they kind of have two parts 0:02:50.440 --> 0:02:52.960 of their business and you helped us learn about that. 0:02:53.200 --> 0:02:57.120 There's ticketing and then I think promotion. Yeah, just explain it. 0:02:57.200 --> 0:02:58.840 So Live Nation is a concert promoter. 0:02:58.960 --> 0:03:01.080 That means that they're the people who are in charge 0:03:01.160 --> 0:03:02.919 of putting on a show. 0:03:03.280 --> 0:03:03.520 Right. 0:03:03.600 --> 0:03:06.480 When you're a promoter, you make very little money because 0:03:06.480 --> 0:03:08.000 the artist keeps. 0:03:07.760 --> 0:03:11.960 Almost all of the tickets sit, which seems fair totally. 0:03:12.000 --> 0:03:15.239 The promoter can make money from merchandise, can make money 0:03:15.280 --> 0:03:16.639 from food and beverage, that sort of thing. 0:03:16.840 --> 0:03:18.200 They also own a ticket seller. 0:03:18.440 --> 0:03:22.200 Ticket sellers similarly, don't make very much money from the 0:03:22.280 --> 0:03:23.480 actual tickets being sold. 0:03:23.480 --> 0:03:24.800 They make their money from the fees. 0:03:25.040 --> 0:03:27.480 But when we're talking about profit margins, content promotion is 0:03:27.480 --> 0:03:30.240 a very low margin business. Ticket selling is a better 0:03:30.280 --> 0:03:32.920 business Live Nation. You add in advertising, which they do. 0:03:32.960 --> 0:03:36.320 They sell sponsorships and ticketing, and advertising is actually where 0:03:36.360 --> 0:03:38.200 they make most of their money. But the promotion is 0:03:38.240 --> 0:03:40.320 sort of the meat of the business, and so the 0:03:40.400 --> 0:03:43.000 whole package works really well. But it's also something that 0:03:43.360 --> 0:03:44.560 some people feel is unfair. 0:03:44.960 --> 0:03:47.080 We're going to be listening to part of that interview 0:03:47.160 --> 0:03:49.440 that you conducted last night in a moment, but push 0:03:49.520 --> 0:03:51.880 us forward to today. We are currently sat in LA 0:03:52.000 --> 0:03:53.880 It's about to get fiercely hot. It's going to get 0:03:53.880 --> 0:03:56.840 crowded in here, and with excitement. You've got others in 0:03:56.880 --> 0:03:58.760 the music industry, Ron for example. 0:03:58.800 --> 0:04:00.880 Yeah, I really hope it's not too hot today, but 0:04:00.960 --> 0:04:04.000 it is a concern. Look, Scooter doesn't do very many interviews. 0:04:04.560 --> 0:04:06.920 He's had a pretty tumultuous couple of years. There was 0:04:06.920 --> 0:04:09.280 sort of this period where he basically stopped managing a 0:04:09.280 --> 0:04:12.560 lot of his biggest clients, justin Bieber Ariana Grande. It 0:04:12.640 --> 0:04:14.800 was reported as they fired him. I think it was 0:04:14.840 --> 0:04:18.240 sort of a conscious uncoupling in the term of Gwynne 0:04:18.320 --> 0:04:21.960 Paltrow and Chris Martin. But I'm very excited to talk 0:04:22.000 --> 0:04:24.440 to him about that and about sort of discovering talent 0:04:24.520 --> 0:04:26.560 and how that works, because there's a lot of concern 0:04:27.480 --> 0:04:30.840 that it's hard for artists to break out. Right now, We've. 0:04:30.600 --> 0:04:33.040 Got so many great conversations coming up, Sean Evans, you 0:04:33.080 --> 0:04:35.159 gonna be listening to Matt Stone. Cannot wait for that 0:04:35.200 --> 0:04:38.200 conversation all about South Park. Look as sure, what a 0:04:38.279 --> 0:04:40.080 legend who's currently running this event for us. 0:04:40.200 --> 0:04:40.760 We thank him. 0:04:40.800 --> 0:04:43.760 Meanwhile, those panels actually did kick off yesterday as we're saying, 0:04:44.000 --> 0:04:45.880 let's just listen to a little bit of that conversation 0:04:45.920 --> 0:04:48.600 the CEO of Live Nation, Michael Rappino, who says they 0:04:48.640 --> 0:04:51.200 actually want resale prices to be capped. 0:04:51.839 --> 0:04:56.159 Listening Unfortunately, those ten times a year when you have 0:04:56.160 --> 0:04:58.800 ten million people trying to buy a million Oasis tickets, 0:04:59.120 --> 0:05:03.039 you know, nice way to tell nine million passionate fans, 0:05:03.080 --> 0:05:06.840 sorry the store is closed. So you know that that 0:05:06.880 --> 0:05:10.040 creates lots of tens and they go online and they 0:05:10.040 --> 0:05:13.920 see paid, they see you ten pages of secondary tickets 0:05:14.160 --> 0:05:15.160 and they get pissed off. 0:05:15.440 --> 0:05:18.599 If you had a magic wand or you were you 0:05:18.640 --> 0:05:19.960 were a third of named Emperor for the day, and 0:05:20.000 --> 0:05:23.680 you could change just change ticketing however you wanted, what 0:05:23.720 --> 0:05:24.200 would you do? 0:05:25.760 --> 0:05:29.279 It's it's a great question. The problem is professional bots 0:05:29.320 --> 0:05:31.719 all around the world. You know, we got hit by 0:05:32.080 --> 0:05:35.960 multi billions of bots on the Oasis on sale, you know, 0:05:36.000 --> 0:05:40.120 so there are professional twelve billion dollar business trying to 0:05:40.160 --> 0:05:42.960 capture all those seats, right, so it's an arms race 0:05:43.000 --> 0:05:45.279 with us trying to stop them. Not let them in 0:05:45.279 --> 0:05:47.120 the door, let them, not let them hold the tickets. 0:05:47.240 --> 0:05:49.400 You shouldn't have a middleman that has nothing invested in 0:05:49.440 --> 0:05:51.680 the business make any money from it. So we would 0:05:51.720 --> 0:05:54.920 love it regulated in some sense, cap it at twenty percent. 0:05:55.240 --> 0:05:57.440 Some people can make a little money. That would be the. 0:05:57.440 --> 0:06:00.200 Biggest part that we get. The most engine on the 0:06:00.240 --> 0:06:00.960 an cell. 0:06:01.240 --> 0:06:04.320 Is that right now? Right? 0:06:05.880 --> 0:06:08.479 That was Live Nation CEO Michael Rapino, and it was 0:06:08.560 --> 0:06:11.960 refreshingly honest in that conversation with Lucas Shaw. Many more 0:06:11.960 --> 0:06:14.839 conversations like that coming up throughout the day. Okay, on 0:06:14.880 --> 0:06:18.320 this program Bloomberg Technology, We're going to talk video generation 0:06:18.440 --> 0:06:21.680 in the context of AI and much more with Runway 0:06:21.800 --> 0:06:23.720 CEO Chris the baal of Anezuela. 0:06:24.000 --> 0:06:24.880 That's coming up next. 0:06:24.920 --> 0:06:29.120 This is Bloomberg Technology on the Road screen Time, Los Angeles, Hollywood. 0:06:40.000 --> 0:06:42.240 All right, if you're just joining us, this is Bloomberg 0:06:42.279 --> 0:06:45.720 Technology on the road in Hollywood at screen Time. Runway 0:06:46.160 --> 0:06:51.000 is using AI to revolutionize the entertainment industry. The company's 0:06:51.040 --> 0:06:55.080 teamed up with Lionsgate Studios to build AI models and 0:06:55.120 --> 0:06:59.240 now has backing to produce dozens of films, movies literally 0:06:59.640 --> 0:07:00.480 about it. 0:07:00.560 --> 0:07:02.760 Runway CEO Chris bell Anezuela joins. 0:07:02.560 --> 0:07:07.560 Us and that deal. How real is it? The process 0:07:07.640 --> 0:07:12.800 the production of making a film in partnership using your technology. 0:07:12.960 --> 0:07:14.440 Yeah, so it's a first off. 0:07:14.440 --> 0:07:17.400 It's kind kind of the ill and the idea behind 0:07:17.400 --> 0:07:20.920 it really is to take the Lionsgate team further with 0:07:20.960 --> 0:07:23.960 the technology. We're at the crossing point where AI is 0:07:23.960 --> 0:07:26.520 becoming really useful for filmmaking, and so what we really 0:07:26.560 --> 0:07:29.840 want to make sure is that we help creative filmmakers, artists, 0:07:29.880 --> 0:07:32.960 studios really understand how to use it in the best 0:07:33.040 --> 0:07:36.320 way possible, and so what we did with Lionsgate it's 0:07:36.360 --> 0:07:38.080 I think something we've been trying to do for a 0:07:38.120 --> 0:07:40.760 long time, basically to reach the gap between AI and 0:07:40.760 --> 0:07:44.200 Hollywood and bring this technology in much more accessible ways 0:07:44.240 --> 0:07:45.160 too many fast. 0:07:45.160 --> 0:07:47.360 As you know, I love the detail of things. 0:07:47.480 --> 0:07:51.920 Are we talking about filmmakers at Lionsgate sitting as a 0:07:51.960 --> 0:07:56.400 computer using your your your software as part of their process? 0:07:56.560 --> 0:07:57.560 Yeah, that's kind of the point. 0:07:57.560 --> 0:07:59.800 There's many tasks in the development of a movie where 0:07:59.800 --> 0:08:01.640 you and in bad AI. 0:08:01.440 --> 0:08:03.760 Or our models and make that cheaper and faster. 0:08:04.160 --> 0:08:08.560 So if you're iterating through storyboarding or previousizations or visual effects, 0:08:08.920 --> 0:08:12.200 you can use our models, and filmmakers are now understanding 0:08:12.200 --> 0:08:14.160 how to use these models in ways that are very 0:08:14.200 --> 0:08:16.080 useful for them, right. But I think that's the key 0:08:16.080 --> 0:08:18.400 aspect of it, which is for a long time it 0:08:18.440 --> 0:08:21.080 has been seen as this kind of a system that 0:08:21.120 --> 0:08:23.560 creates movies on its own, right, And it's really not 0:08:23.680 --> 0:08:24.000 like that. 0:08:24.240 --> 0:08:25.360 It's really a tool for. 0:08:25.400 --> 0:08:27.960 Directors on filmmakers, And with the lens Geed deal, what 0:08:28.000 --> 0:08:30.400 we really want to make sure they understand is that 0:08:30.440 --> 0:08:33.320 they can take that further for the movies and becomes 0:08:33.320 --> 0:08:35.760 a really cost effective tool to you. So again, if 0:08:35.800 --> 0:08:39.920 you're spending hundreds of self dollars in making a shot, 0:08:40.160 --> 0:08:43.080 making a visual effects a scene, you can now use 0:08:43.160 --> 0:08:45.600 Runway to kind of reduce that cost and move faster 0:08:46.000 --> 0:08:47.520 and to better results. 0:08:47.559 --> 0:08:51.040 You've been improving your models, Yes, how costly does that become? 0:08:51.360 --> 0:08:53.920 Remain there's definitely research that has to be done to 0:08:53.920 --> 0:08:56.520 train the models on the first end, but then running 0:08:56.520 --> 0:08:58.680 the models and using them has become much more cost 0:08:58.720 --> 0:09:00.800 effective over time. And I don't know, I think we're yet 0:09:00.800 --> 0:09:03.520 at the point where you will see an optimization, like 0:09:03.760 --> 0:09:05.839 we're going to optimize the models even more so the 0:09:05.840 --> 0:09:08.240 cost of running them will be even cheaper and faster. 0:09:08.760 --> 0:09:11.040 Let's just talk a little bit about therefore, is you're 0:09:11.400 --> 0:09:16.160 building your offering, you're winning over new clients like Lionsgate. 0:09:16.559 --> 0:09:18.400 We think about where we were this time last year. 0:09:18.440 --> 0:09:22.480 We think about Hollywood in strike mode because in large 0:09:22.480 --> 0:09:25.560 part because ourtivision intelligence. What sort of conversations you had 0:09:25.640 --> 0:09:28.800 to have to get people comfortable with this technology. 0:09:28.840 --> 0:09:30.360 Well, the first thing that I think it's important to 0:09:30.400 --> 0:09:33.240 remember is that Hollywood is the history of technology. Like 0:09:33.320 --> 0:09:36.240 we are here because of technological breakthrough, right, and so 0:09:36.320 --> 0:09:38.840 we sometimes forget that ourd and technology kind of like 0:09:38.880 --> 0:09:42.040 come together always, and for us it's like this may 0:09:42.080 --> 0:09:44.280 defind a little bit of technology. Again, if you understand 0:09:44.320 --> 0:09:47.040 AI as a tool for humans, then it changes the 0:09:47.120 --> 0:09:50.040 narrative and it's less about fearing it and more about 0:09:50.040 --> 0:09:51.720 embracing it and you realize how. 0:09:51.559 --> 0:09:54.120 You can actually use it. And I think what we 0:09:54.160 --> 0:09:54.480 need to. 0:09:54.400 --> 0:09:56.640 Do right now is kind of like educate more and 0:09:56.760 --> 0:09:59.640 show the potential. There's also challenges of the technology. It's 0:09:59.640 --> 0:10:01.800 not a kind of technology. It's not a perfect tool. 0:10:02.000 --> 0:10:05.640 There are things that are not exactly working as they should, 0:10:05.880 --> 0:10:07.600 but that's kind of the point, as you need to 0:10:07.640 --> 0:10:09.760 improve them and make it even better. And I think 0:10:10.360 --> 0:10:14.040 part of it is just like showing more people, more producers, 0:10:14.120 --> 0:10:16.880 more Hollywood studios, really the potential of film. 0:10:17.040 --> 0:10:20.880 And you said because about Caroline and I use text 0:10:21.000 --> 0:10:23.760 to text, texted image, text and video tools every day. 0:10:24.120 --> 0:10:28.760 I love technology, but I also just love film. Yeah, 0:10:28.840 --> 0:10:31.720 and there comes a point where I just want to 0:10:31.760 --> 0:10:38.560 ask if AI really can give the same feeling create 0:10:38.720 --> 0:10:43.680 film and movie and content that is as authentic as 0:10:43.720 --> 0:10:47.640 the great filmmakers can make it with their hands and 0:10:47.679 --> 0:10:48.840 their eyes and camera. 0:10:49.000 --> 0:10:50.079 What do you think about that? 0:10:50.160 --> 0:10:54.079 Well, the interesting thing is filmmaking and stories and art 0:10:54.240 --> 0:10:57.360 are never really about the denali are about conveying feeling 0:10:57.360 --> 0:10:59.600 and emotion. Are about connecting with the viewer and telling 0:10:59.679 --> 0:11:02.040 and make you feel something. Right, You never watch a 0:11:02.040 --> 0:11:04.920 movie because how it was made right, or the cameras 0:11:04.960 --> 0:11:06.160 that were used to make the movies. 0:11:06.240 --> 0:11:07.560 Right, You watch your real nerves. 0:11:08.080 --> 0:11:10.720 Yeah, yes, but maybe even though like after the fact 0:11:10.760 --> 0:11:12.679 that you like the movie, right, you can go deeper 0:11:12.679 --> 0:11:14.800 into how it was made. But ninety nine percent of 0:11:14.840 --> 0:11:17.600 the world which is movie because they feel something because 0:11:17.640 --> 0:11:20.320 they connect with it, And so ai you think about 0:11:20.360 --> 0:11:22.600 it as a tool, can help you kind of connect 0:11:22.640 --> 0:11:25.040 with your audience, can help you deliver that message, can 0:11:25.080 --> 0:11:27.920 help you tell us stories. And so right now, I 0:11:27.920 --> 0:11:31.520 think we're fascinating by the technoli itself because it is fascinating, 0:11:31.520 --> 0:11:35.720 it's revolutionary, it's changing the game. It's incredibly new and exciting. 0:11:36.120 --> 0:11:38.840 But at the same time, if you want to focus 0:11:38.840 --> 0:11:41.079 on art and filmmaking, it's important that we switch the 0:11:41.160 --> 0:11:44.120 narrative to storytelling to people and how they use it 0:11:44.320 --> 0:11:46.920 and how they convey stories with technology and less about 0:11:47.040 --> 0:11:49.680 how which AI or which technology was used behind the scenes. 0:11:49.800 --> 0:11:53.720 You've been telling stories to raise money, and you've got some. 0:11:53.640 --> 0:11:56.120 Really interesting investors because. 0:11:56.040 --> 0:11:57.160 Not many of them are going to be in the 0:11:57.160 --> 0:12:00.599 world of art and creation. In fact, you've got Nvidio salesforce. 0:12:00.960 --> 0:12:02.440 What do they want to see out of you? Why 0:12:02.480 --> 0:12:04.800 do you have these sort of strategic investors coming on 0:12:05.480 --> 0:12:07.800 like an Nvidia and what do they earn it? 0:12:07.960 --> 0:12:08.120 Well? 0:12:08.120 --> 0:12:10.280 I think they are telling stories and their users are 0:12:10.320 --> 0:12:14.679 also telling stories. Again, you can think about storytelling as Hollywood, 0:12:14.840 --> 0:12:17.640 as media, as films, but okay, you think about companies. 0:12:17.720 --> 0:12:20.640 Companies are also telling stories when they're advertising, when they're 0:12:20.640 --> 0:12:23.200 doing marketing, when they're communicating with they're users, and so 0:12:23.280 --> 0:12:26.000 if you can help them also deliver better messages, then 0:12:26.000 --> 0:12:28.120 that's also a form of storytelling. Perhaps it's not as 0:12:28.160 --> 0:12:29.719 the art kind of like form, but it's still like 0:12:29.760 --> 0:12:31.320 a former video. You want to make sure we can 0:12:31.400 --> 0:12:33.599 work with companies like that that are great and have 0:12:33.640 --> 0:12:34.760 been great partners for us for all long. 0:12:35.040 --> 0:12:38.000 For at least a year, I've been hearing about Runway 0:12:38.000 --> 0:12:41.120 and your name comes up a lot. Open AI has 0:12:41.200 --> 0:12:44.040 Sora on the show. In the last week we talked 0:12:44.040 --> 0:12:47.440 about Meta's new tool. Yeah, but you have a very 0:12:47.920 --> 0:12:52.079 singular focus. Where do you think you stand in your 0:12:52.120 --> 0:12:55.800 competence and as a business relative to that competition of 0:12:55.840 --> 0:12:56.800 open AI and Meta. 0:12:57.040 --> 0:12:57.280 Yeah. 0:12:57.320 --> 0:13:00.559 Look, when we started this seven years ago, it was 0:13:00.559 --> 0:13:02.760 a very new field, and I think we prevent over 0:13:02.840 --> 0:13:06.480 time that it's a really exciting and worthwhile time field 0:13:06.480 --> 0:13:08.400 to spend time. And it's an industry that's going and 0:13:08.440 --> 0:13:11.079 it's changing. And I think when you create a market 0:13:11.160 --> 0:13:13.120 and you create a good opportunity, you will have competition. 0:13:13.240 --> 0:13:15.760 I think it's it's unreal to think that no one 0:13:15.800 --> 0:13:17.439 else will try to build what we're building. But at 0:13:17.440 --> 0:13:19.440 the same time, we're very much in the long term 0:13:19.480 --> 0:13:22.760 horizon strategy, like everything we're building is not really about 0:13:23.160 --> 0:13:25.520 video to the eights around everything else that we can 0:13:25.559 --> 0:13:28.439 build to create better tools for storytellers over the world, 0:13:28.679 --> 0:13:30.640 And so video is only a first kind of like 0:13:30.880 --> 0:13:34.680 stepping stone, but working towards audio, towards images, towards three D. 0:13:34.960 --> 0:13:37.680 Just a collective system and collective set of tools and 0:13:37.760 --> 0:13:39.679 AI system that can help you in all forms of 0:13:39.720 --> 0:13:40.880 storytellings that you want to tell. 0:13:40.960 --> 0:13:43.319 Will you raise more money for that long we will 0:13:43.360 --> 0:13:44.720 have to do whatever we have to do to deliver 0:13:44.880 --> 0:13:48.280 that meeting, you will have to We've been kind of 0:13:48.280 --> 0:13:50.520 like raising almost every year from now since we started 0:13:50.559 --> 0:13:52.040 seven years ago, and IPS. 0:13:52.520 --> 0:13:54.240 We're just focused on building right now. 0:13:54.720 --> 0:13:56.400 We always want to know that about things run by 0:13:56.480 --> 0:14:09.800 CEO Christ about Valenzuela, want a joy to have him. 0:14:09.840 --> 0:14:12.920 We've given you the founder take from La, but let's 0:14:12.960 --> 0:14:16.120 get the analysts take now on the future of entertainment, 0:14:16.160 --> 0:14:19.240 the intertwining of generative AI and the competition we're seeing 0:14:19.240 --> 0:14:20.760 when it comes to streaming in the light we needn't 0:14:20.760 --> 0:14:22.880 see your entertainment analyst, Laura Martin, We're. 0:14:22.720 --> 0:14:24.600 So excited to meet you here in the flat. 0:14:24.720 --> 0:14:27.760 Finally after all this time. Lovely to be here. 0:14:27.680 --> 0:14:29.640 And you were just here listening to what Crista Bell 0:14:29.800 --> 0:14:32.560 was talking about in terms of the Runway deal working 0:14:32.600 --> 0:14:35.360 with Lionsgate and for you. How much is generative AI 0:14:35.480 --> 0:14:36.960 changing up the game of the companies you cover? 0:14:37.600 --> 0:14:39.000 You know, I think it's changing it a lot. 0:14:39.120 --> 0:14:41.760 I see it most in my tech first companies because 0:14:41.760 --> 0:14:45.760 they have to adopt generalor AI. These content storytelling companies, 0:14:45.800 --> 0:14:47.600 I think are going to be a little slower because 0:14:47.600 --> 0:14:51.200 you watch consumers watch movies because it's storytelling. But I 0:14:51.200 --> 0:14:54.680 think Generator VII opens up poor creative windows. 0:14:54.800 --> 0:14:56.800 Let me just jump in and say, for oblionbo Telogy, 0:14:56.840 --> 0:14:59.520 and you cover public equities, but it's tech companies, but 0:14:59.560 --> 0:15:01.360 also some the media and entertainment names. 0:15:01.440 --> 0:15:03.720 Yes, and let's give that context and go from their. 0:15:03.640 --> 0:15:06.000 Current So I think it's really important. 0:15:06.000 --> 0:15:07.440 I think we don't know how much is going to 0:15:07.480 --> 0:15:11.600 affect Hollywood because under the strikes they prohibited the use 0:15:11.600 --> 0:15:14.080 of Generative AI for three years of their deals, so 0:15:14.120 --> 0:15:16.240 it won't affect Hollywood quite as quickly, at least the 0:15:16.240 --> 0:15:18.200 big studios. But I think Runway is going to be 0:15:18.240 --> 0:15:20.880 really important to the future of entertainment, to. 0:15:20.880 --> 0:15:22.200 The future of hiring. 0:15:22.360 --> 0:15:23.960 I mean, how much do you start to see this 0:15:24.040 --> 0:15:27.240 becoming a profit generators to a certain extent because they're 0:15:27.240 --> 0:15:28.280 able to strip out costs. 0:15:28.720 --> 0:15:31.560 So since we're sitting in Hollywood, I'll be respectful of 0:15:31.600 --> 0:15:33.360 the guilds and say that I think of what it 0:15:33.400 --> 0:15:36.360 first does first is open up new areas of creativity. 0:15:36.440 --> 0:15:39.120 Just like animation unleashes has created to give you and 0:15:39.160 --> 0:15:43.240 draw anything. I think that's what Generative AI does over time. 0:15:43.800 --> 0:15:45.840 What I am hearing from companies that are in the 0:15:45.880 --> 0:15:48.840 tech world that are adopting generator. By is they think 0:15:48.880 --> 0:15:52.440 they can cut costs where it applies in segments where 0:15:52.440 --> 0:15:53.960 it applies by twenty to thirty percent. 0:15:55.080 --> 0:15:56.200 The players are different. 0:15:56.280 --> 0:15:58.440 I think it's been so interesting to be here with 0:15:58.560 --> 0:16:01.760 Caroline for twenty four hours. Is go to the studios, 0:16:01.840 --> 0:16:06.120 to drive past Warner Brothers, beyond the Disney lot and 0:16:06.560 --> 0:16:09.200 actually learn a bit about the history, and then consider 0:16:09.240 --> 0:16:12.840 the money that they're deploying to try and either catch 0:16:12.880 --> 0:16:16.600 up with Netflix, frankly, or try and do something a 0:16:16.600 --> 0:16:19.480 bit different. Caroline had fantastic conversation on stage with Amazon 0:16:19.560 --> 0:16:22.880 last night. In the context of Prime you covered those names, 0:16:23.120 --> 0:16:24.640 which do you think is ahead? 0:16:25.320 --> 0:16:27.640 Well, if we're talking about winners clinically. 0:16:27.280 --> 0:16:30.000 And I'm talking about video, you know, entertainment in the 0:16:30.040 --> 0:16:31.880 context of film and television. 0:16:31.520 --> 0:16:32.960 YouTube one, we're done. 0:16:32.960 --> 0:16:36.360 Wow, Amazon's next, Amazon's on the prowl, it's coming up. 0:16:36.760 --> 0:16:40.360 But on YouTube YouTube one. That's a definitive statement from you. 0:16:41.240 --> 0:16:43.320 It is my point of view, ten percent of total 0:16:43.320 --> 0:16:47.160 streaming viewing in Netflix's next at seven point five, so 0:16:47.320 --> 0:16:49.280 YouTube is viewed both on the big screen. Because of 0:16:49.320 --> 0:16:52.600 the NFL deal, they've now done and because user generated 0:16:52.600 --> 0:16:54.080 contact on both mobile phones and on. 0:16:54.000 --> 0:16:56.640 The connected I like data as much as the next person, Laura, 0:16:56.680 --> 0:16:58.560 but you can be a bit more romantic than that 0:16:58.760 --> 0:17:02.280 about you know. So I'm a massive rings of power. 0:17:03.360 --> 0:17:05.440 I'm a massive rings of power nerd. And I was 0:17:05.520 --> 0:17:06.920 trying to get Caroline into that. 0:17:07.359 --> 0:17:08.280 I don't know, what do you think? 0:17:08.400 --> 0:17:10.879 I find YouTube interesting, but I don't go there to 0:17:10.920 --> 0:17:13.520 watch the content I'm super passionate about. 0:17:13.560 --> 0:17:15.480 And so is that the element that we'll start to 0:17:15.480 --> 0:17:18.320 see them bringing originals bringing I mean, at the moment 0:17:18.359 --> 0:17:23.840 it's user generator content. We've got Amazon doing originals, movie making, 0:17:23.880 --> 0:17:27.719 They're also doing live sports. What will YouTube end up 0:17:27.840 --> 0:17:28.440 offering us? 0:17:28.640 --> 0:17:30.720 Well, I remember when Survivor first launch, which was the 0:17:30.760 --> 0:17:33.800 original reality program. I mean, everybody said, this is junk, 0:17:33.920 --> 0:17:36.160 this is trash, This is never going to catch on. 0:17:36.720 --> 0:17:39.160 You know, people who watch YouTube user generator. 0:17:38.840 --> 0:17:40.320 Content think it's premium program. 0:17:40.320 --> 0:17:42.600 I mean, you may not, but it turns out it 0:17:42.640 --> 0:17:45.080 reaches global audiences on YouTube. 0:17:46.160 --> 0:17:48.480 And I really believe in YouTube. 0:17:48.480 --> 0:17:51.760 But I'm just talking about in the evening, when you 0:17:51.840 --> 0:17:53.720 go home after work and you want to watch a 0:17:53.720 --> 0:17:54.639 piece of television. 0:17:55.400 --> 0:17:58.080 I'm not going to YouTube, But carry on, please, I. 0:17:58.000 --> 0:18:01.880 Think anecdotal not statistical to suggest that sort of everybody. 0:18:01.920 --> 0:18:04.439 I think something like eighty five percent of consumers that 0:18:04.560 --> 0:18:08.880 watch video globally or on YouTube weekly, so their data 0:18:08.960 --> 0:18:09.719 is really compelling. 0:18:09.760 --> 0:18:12.360 Now on YouTube, I think, what's interesting you mentioned Survivor. 0:18:12.400 --> 0:18:13.360 I'm actually having a. 0:18:13.320 --> 0:18:17.840 Conversation later with unscripted executives for Peacock, and that's all 0:18:17.880 --> 0:18:21.680 about Love Island and traitors and the new Age and Survivor. 0:18:22.720 --> 0:18:25.000 What then of the Peacocks? What then of the paramounts, 0:18:25.000 --> 0:18:25.600 what then. 0:18:25.560 --> 0:18:29.920