WEBVTT - Super Bowl on Paramount and X's WWE Partnership 0:00:02.920 --> 0:00:12.840 Bloomberg Audio Studios, podcasts, radio news. 0:00:10.160 --> 0:00:12.920 From the Heart where Innovation, money and power. 0:00:13.039 --> 0:00:15.440 Collie in Silicon Valley, NBN. 0:00:15.760 --> 0:00:19.840 This is Bloomberg Technology with Caroline Hyde and Ed Love Love. 0:00:33.560 --> 0:00:35.920 I'm Caroline, head of Bloomberg's world headquarters in New York, 0:00:36.280 --> 0:00:37.880 and I'm Ed Lovelow in San Francisco. 0:00:37.960 --> 0:00:39.919 This is Bloomberg Technology coming up. 0:00:39.960 --> 0:00:43.040 We pushure ahead to the advertising event of the year 0:00:43.440 --> 0:00:45.440 and sit down with the head of the company streaming 0:00:45.479 --> 0:00:47.959 super Bowl fifty eight. You guessed at Paramount CEO Bob 0:00:48.000 --> 0:00:50.560 Backish joins us to break it all down Plust. 0:00:50.600 --> 0:00:53.080 We stick with advertising and streaming and sit down with 0:00:53.120 --> 0:00:55.960 the head of partnerships at x as the social platform 0:00:56.280 --> 0:00:59.800 also announces a deal with the WWE, and we. 0:00:59.760 --> 0:01:01.600 Take a look at this state of sport spelling amid 0:01:01.600 --> 0:01:02.560 this sprning event of the year. 0:01:02.600 --> 0:01:03.800 Is it down the fang? 0:01:03.800 --> 0:01:07.199 You'll see you, Amy Howe, just apart from the Super 0:01:07.240 --> 0:01:08.279 Bowl as the patient. 0:01:08.880 --> 0:01:10.720 Well, it's the end of what's been a pretty busy 0:01:10.760 --> 0:01:14.039 earnings week. Two names behind me, Pinterests and Affirm both 0:01:14.080 --> 0:01:18.120 moving to the downside. Pinterest is interesting, so sales missed, 0:01:18.160 --> 0:01:20.440 but it had top line growth of twelve percent. It's 0:01:20.480 --> 0:01:24.000 monthly active users still continue to grow, but I think 0:01:24.000 --> 0:01:26.319 there's just a lot of read through concern with what 0:01:26.360 --> 0:01:28.919 we're seeing with Snap. They've kind of pegged their strategy 0:01:28.920 --> 0:01:31.760 on direct response ads, where if you've go on Pinterest, 0:01:31.800 --> 0:01:34.320 maybe you're decorating your home, you're getting married, whatever it is, 0:01:34.520 --> 0:01:37.280 they want to amplify the opportunity to click through and 0:01:37.280 --> 0:01:41.000 actually buy something. They were down significantly after hours, like 0:01:41.040 --> 0:01:43.960 twenty percent, but they announced the deal with Google, which 0:01:44.000 --> 0:01:46.280 again made the street feel a little bit better because 0:01:46.280 --> 0:01:48.920 you're saying, Okay, Google's global, and there's a chance that 0:01:48.960 --> 0:01:52.040 you take the images on Pinterest and Google's technology takes 0:01:52.080 --> 0:01:53.640 you through to a buying opportunity. 0:01:53.840 --> 0:01:55.440 A firm is also lower. 0:01:55.600 --> 0:01:58.920 Basically, they said that transaction volume this year isn't going 0:01:58.960 --> 0:02:00.840 to be what the street expects. That has got some 0:02:01.000 --> 0:02:03.400 nerves going in the street. We're going to speak to 0:02:03.400 --> 0:02:06.160 a firm CEO, Max Levskin later in the show. Another 0:02:06.280 --> 0:02:10.560 deal we're tracking, but this time interesting. TKO, the WWE parent, 0:02:10.800 --> 0:02:13.560 doing a deal with X the platform. 0:02:13.160 --> 0:02:16.000 And company formerly known as Twitter. It's a weekly series of. 0:02:15.919 --> 0:02:21.440 Short form WWE matches. WWE produces the content ex does 0:02:21.440 --> 0:02:24.640 the distribution, and we'll hear from my interview with X's 0:02:24.639 --> 0:02:28.200 headed partnership Brett White's later in the program about why 0:02:28.240 --> 0:02:30.679 they did that, as well as the super Bowl, which 0:02:30.680 --> 0:02:32.680 I think is the dominant theme of the show today. 0:02:33.720 --> 0:02:34.840 I mean it is a theme. 0:02:34.919 --> 0:02:36.960 But so two are these markets, So two are these 0:02:37.000 --> 0:02:40.160 deals on content and ed You so brilliantly summarize the micro. 0:02:40.280 --> 0:02:42.519 Let's go to the macro a little bit with Meghan Honoman. 0:02:42.560 --> 0:02:45.440 She's with our CEO of Vernet's Capital Advisors, and Meghan, 0:02:45.800 --> 0:02:48.320 we're talking about content at the moment, we're also more 0:02:48.360 --> 0:02:52.720 broadly talking about where the investor's mind is at when 0:02:52.760 --> 0:02:54.160 it comes to content. 0:02:53.880 --> 0:02:55.400 Producers and technology. 0:02:55.440 --> 0:02:58.320 More broadly, can we still anticipate a reason to be 0:02:58.360 --> 0:03:01.120 buying into heady valuation when it comes to tech and 0:03:01.200 --> 0:03:02.240 we're broadly in an S. 0:03:02.280 --> 0:03:06.480 And P A five thousand, Well, we wouldn't at this point. 0:03:06.600 --> 0:03:09.760 You're looking at valuations that are really top heavy. Here 0:03:09.800 --> 0:03:12.680 you mentioned it. I think from the technology standpoint, what 0:03:12.760 --> 0:03:16.160 you're seeing is this drive forward in these names is 0:03:16.200 --> 0:03:19.160 specifically just that fear of missing out. Investors are worried 0:03:19.200 --> 0:03:21.519 about missing out on that next new evolution that we 0:03:21.560 --> 0:03:24.160 see here from technology and while this is a long 0:03:24.240 --> 0:03:26.280 term theme, we just think there's a price that you 0:03:26.480 --> 0:03:28.040 that you should be willing to pay for, and at 0:03:28.040 --> 0:03:29.960 this point, I think it's just a little bit expensive. 0:03:30.000 --> 0:03:32.840 I think there can be some consolidation as we go forward. 0:03:34.120 --> 0:03:37.400 Megan, economic data has been really important for this show 0:03:37.440 --> 0:03:40.240 Bloomberg Technology this week. You know, historically we may not 0:03:40.320 --> 0:03:43.680 have focused as much on CPI revision or not, but 0:03:43.760 --> 0:03:46.840 we are because of the point you make valuations and 0:03:46.880 --> 0:03:49.040 what will or won't happen with the FED and rates. 0:03:49.520 --> 0:03:52.560 Is that how you approach the technology sector. It's sensitivity 0:03:52.600 --> 0:03:54.760 to rates in twenty twenty four in particular. 0:03:55.880 --> 0:03:58.320 Yeah, I think there's you know, it's sensitivity to rates, 0:03:58.320 --> 0:04:01.440 but also the valuations. We're seeing rates move higher and 0:04:01.480 --> 0:04:04.280 these names are still moving higher the technology side. So 0:04:04.880 --> 0:04:06.680 that's why I believe it's just part of this fear 0:04:06.720 --> 0:04:09.560 of missing out that investors have they're going to miss 0:04:09.600 --> 0:04:12.080 out on this tech rally. I just think from an 0:04:12.080 --> 0:04:14.800 interest rate perspective that there's risk there and what's going 0:04:14.920 --> 0:04:17.640 to take some steam out of this rally will be 0:04:17.760 --> 0:04:20.719 when there's I guess a bit more realistic view on 0:04:20.800 --> 0:04:23.160 what the FED can do. Where we have rate cuts 0:04:23.200 --> 0:04:25.400 priced in now as early as May. I think that's 0:04:25.400 --> 0:04:29.279 still is a little aggressive. Inflation is coming down, but 0:04:29.360 --> 0:04:32.120 it's still is above the Fed's target. And what we're 0:04:32.160 --> 0:04:35.360 concerned about here from the macro level is the dubbish 0:04:35.520 --> 0:04:38.279 tilt that the FED took back in December has now 0:04:38.360 --> 0:04:41.320 reignited the economy and it is really putting a risk 0:04:41.360 --> 0:04:43.839 of reigniting inflation. And we're seeing that in some of 0:04:43.839 --> 0:04:45.840 the economic data that we've gotten in just the past 0:04:45.839 --> 0:04:46.480 couple of weeks. 0:04:47.640 --> 0:04:50.120 I want to linger on something that Dara Kross Rashah. 0:04:50.120 --> 0:04:53.039 He told us that uber CEO and the show in 0:04:53.080 --> 0:04:55.960 the last couple of days, which is basically all around 0:04:55.960 --> 0:05:00.240 the world, they see the consumer being really strong that 0:05:00.279 --> 0:05:02.320 maybe we didn't cover as deeply as well as they're 0:05:02.320 --> 0:05:06.320 also seeing increased corporate spending on their platform, and I 0:05:06.320 --> 0:05:09.520 thought that was just a really interesting proxy for the 0:05:09.520 --> 0:05:10.400 global economy. 0:05:11.320 --> 0:05:11.840 How do you. 0:05:11.839 --> 0:05:15.039 Feel right now about where we are globally? Consumer strength, 0:05:15.120 --> 0:05:17.480 corporate spending, all the things that we've had such anxiety 0:05:17.520 --> 0:05:19.400 about for the last couple of years. 0:05:20.880 --> 0:05:24.040 So for the consumer standpoint, you have to remember they 0:05:24.080 --> 0:05:26.960 are spending, but they're spending because the labor market's been strong. 0:05:27.760 --> 0:05:30.599 Labor market is always a lagging indicator, and we've seen 0:05:30.640 --> 0:05:31.960 in this earning season. 0:05:31.680 --> 0:05:32.920 A lot of layoffs. 0:05:33.160 --> 0:05:36.400 We're waiting to see how that filters into the employment 0:05:36.440 --> 0:05:39.240 market and how that filters into the data. That's a 0:05:39.240 --> 0:05:41.120 bigger concern that we have. The other thing from the 0:05:41.160 --> 0:05:44.760 consumer standpoint is they're spending on credit. Credit card debt 0:05:44.839 --> 0:05:48.560 is rising. Along with that, you're seeing not only autodelinquencies 0:05:48.560 --> 0:05:51.719 but also credit card delinquencies starting to rise. I think 0:05:51.760 --> 0:05:54.640 the consumer is just still stuck in this mentality that 0:05:54.680 --> 0:05:57.039 the Fed will come in and save the day at 0:05:56.880 --> 0:05:59.679 any sign of weakness. This is what we've been dealing 0:05:59.680 --> 0:06:02.240 with for the past couple decades. This is not the 0:06:02.279 --> 0:06:05.320 case anymore. We are in an inflationary environment where the 0:06:05.360 --> 0:06:08.400 Fed has to be very careful on what they articulate 0:06:08.440 --> 0:06:11.760 to the markets as well as what the economy can 0:06:11.800 --> 0:06:13.440 handle from the inflation standpoint. 0:06:14.040 --> 0:06:18.360 Very briefly, Megan, we very easily default to talking about equities. 0:06:18.720 --> 0:06:21.080 The bomb markets are bigger and indean. We've had a 0:06:21.120 --> 0:06:23.159 lot of treasuries taking down this week. What about corporate 0:06:23.200 --> 0:06:25.240 debt in this particular instance, particularly among some of the 0:06:25.240 --> 0:06:26.720 tech names and tech space more broadly. 0:06:28.360 --> 0:06:30.560 So, I have to be honest, corporate debt has surprised 0:06:30.640 --> 0:06:32.960 me as far as how well it's performed last year 0:06:33.000 --> 0:06:35.680 and even starting out this year, because you have been 0:06:35.760 --> 0:06:39.640 seeing defaults rising and defaults are expected to continue to rise. 0:06:39.720 --> 0:06:42.880 But yet spreads in the corporate market, in investment grade 0:06:42.920 --> 0:06:45.640 as well as the high yield market are extraordinarily tight. 0:06:46.240 --> 0:06:49.760 This is just again I think people chasing for yield, 0:06:49.800 --> 0:06:51.880 and I don't think it going forward that that's something 0:06:51.920 --> 0:06:54.360 you want to do, especially when you're looking at spreads 0:06:54.360 --> 0:06:54.720 that are. 0:06:54.640 --> 0:06:55.360 Just so tight. 0:06:56.520 --> 0:06:59.560 Megan Horman, cio Verden's Capital Advisor is great to have 0:06:59.600 --> 0:06:59.960 time with you. 0:07:00.160 --> 0:07:00.560 Thank you. 0:07:00.960 --> 0:07:04.160 Super Bowl fifty eight almost upon us big day for 0:07:04.200 --> 0:07:07.000 sports fans and for ad lovers too. How are you 0:07:07.000 --> 0:07:10.640 going to watch well across Paramount properties, CBS, Paramount plus 0:07:10.760 --> 0:07:13.320 Nickelodeon for the kids, even now joining us to discuss 0:07:13.320 --> 0:07:16.040 the Sunday Super Bowl and much much more. Paramount Global 0:07:16.080 --> 0:07:20.560 CEO Bob Backish live from Las Vegas, an anticipation of Sunday, 0:07:20.680 --> 0:07:22.920 and I'm interested in NFL on CBS. 0:07:22.960 --> 0:07:25.360 Of course, you've had a record regular season. 0:07:25.600 --> 0:07:28.200 We're anticipating record eyeballs for Sunday. 0:07:28.480 --> 0:07:29.640 What about those ads? 0:07:29.640 --> 0:07:31.800 Bloomberg Intelligence think you might be raking in as much 0:07:31.840 --> 0:07:33.160 as seven hundred million dollars? 0:07:33.240 --> 0:07:34.480 Is that the right sort of a Mountbob? 0:07:36.520 --> 0:07:40.440 So, Caroline, it's been an incredible season for the NFL 0:07:40.480 --> 0:07:45.360 on CBS. We set the high watermark for ratings since 0:07:45.480 --> 0:07:48.520 the property returned in nineteen ninety eight. We set the 0:07:48.560 --> 0:07:52.600 all time record for a divisional playoff game. And to 0:07:52.640 --> 0:07:56.000 your point, we set the high watermark for ad sales 0:07:56.040 --> 0:08:00.360 for Super Bowl and it's looking like on SAD on 0:08:00.440 --> 0:08:04.040 Sunday will set an all time viewing number with any luck. 0:08:04.160 --> 0:08:08.000 So it's an incredible year to be the NFL on CBS. 0:08:08.760 --> 0:08:09.920 We're a technology show. 0:08:10.040 --> 0:08:13.080 From a technology perspective, Just how much of a feat 0:08:13.200 --> 0:08:16.280 is it to be able to put this across audio properties, 0:08:16.320 --> 0:08:18.880 to be able to have SpongeBob doing his thing, whether 0:08:18.920 --> 0:08:22.200 it's on Nickelodeon, but also to be consuming it via 0:08:22.240 --> 0:08:23.200 cable or streaming. 0:08:25.720 --> 0:08:29.760 Yeah. So the infrastructure around the Super Bowl to ensure 0:08:29.840 --> 0:08:33.400 that the world's audiences can see it is truly extraordinary. 0:08:33.840 --> 0:08:36.800 I mean the number of cameras, remote cameras, etc. I 0:08:36.840 --> 0:08:40.400 think it's like one hundred and forty or something like that. 0:08:41.120 --> 0:08:43.400 And to your point, where we obviously have the main 0:08:43.480 --> 0:08:46.960 feed on CBS here in the United States, we have 0:08:47.040 --> 0:08:51.600 the first ever alternate telecasts of a Super Bowl on Nickelodeon, 0:08:51.920 --> 0:08:53.800 which is going to be super fun. And to your 0:08:53.840 --> 0:08:56.839 point on tech, we're actually going to do all the 0:08:57.559 --> 0:09:02.480 graphics and enhance since real time. When we did the 0:09:02.559 --> 0:09:07.520 last Nickelodeon game last year, we did that very quickly, 0:09:07.600 --> 0:09:09.600 but it wasn't real time. The tech has now allows 0:09:09.679 --> 0:09:11.600 us to do it real time, so that's super cool. 0:09:11.760 --> 0:09:13.560 And then of course we have it on Paramount Plus 0:09:14.120 --> 0:09:18.040 streaming simultaneously. So yeah, a lot of infrastructure, a lot 0:09:18.040 --> 0:09:21.480 of people behind the scenes, but we're feeling great about it. 0:09:21.800 --> 0:09:24.480 And we've been doing Super Bowls longer than anyone else, 0:09:24.520 --> 0:09:26.120 so we'll get it done. 0:09:26.360 --> 0:09:28.000 Let's talk about anyone else. 0:09:28.240 --> 0:09:31.560 Let's talk about how well sports content is so hot 0:09:31.640 --> 0:09:33.520 right now and everyone wants to think about how we 0:09:33.520 --> 0:09:36.400 can offer it through a streaming product. I look at Disney, 0:09:36.400 --> 0:09:39.720 Fox and Warner Brothers, the announcement this week you've shown, 0:09:39.760 --> 0:09:42.640 and I think about how Super Bowl actually twenty twenty 0:09:42.640 --> 0:09:45.040 one was, how you announce Paramount Plus and the breadth 0:09:45.040 --> 0:09:48.400 of content, But how do you tackle the focus on 0:09:48.440 --> 0:09:52.240 sports coming from rivals. 0:09:52.520 --> 0:09:56.080 So we love sports here at Paramount Obviously it's a 0:09:56.160 --> 0:09:59.120 key component of CBS. I think about it as a 0:09:59.160 --> 0:10:01.680 slice of the wheel. It's part of our programming offering. 0:10:02.040 --> 0:10:04.559 Same with Paramount Plus. You know, we talk about Paramount 0:10:04.559 --> 0:10:08.000 Plus as news, sports and amountain of entertainment. Obviously the 0:10:08.120 --> 0:10:11.360 NFL is a key part of that. But I want 0:10:11.400 --> 0:10:12.679 to emphasize that we like. 0:10:12.640 --> 0:10:13.640 A broad product. 0:10:13.679 --> 0:10:17.240 We've looked at sports only plays in digital, both a 0:10:17.240 --> 0:10:20.280 standalone basis and with partners, and we continue to believe 0:10:20.679 --> 0:10:25.000 that broad is better. We see that in people coming 0:10:25.040 --> 0:10:28.400 in for sports properties, subscribing for things like the NFL. 0:10:28.720 --> 0:10:31.840 But if you look at the sports viewer on Paramount Plus, 0:10:32.080 --> 0:10:35.520 believe it or not, ninety percent of their engagement i e. 0:10:35.679 --> 0:10:39.440 Time spent is with non sports programming. So again, bring 0:10:39.480 --> 0:10:42.000 them in with sports, but key to the model is 0:10:42.360 --> 0:10:46.240 elongated and entertain them quite frankly with other stuff as well. 0:10:46.640 --> 0:10:50.360 We firmly believe that leads to accessing a bigger TAM, 0:10:50.440 --> 0:10:55.320 bigger market and it is better for the business model, 0:10:55.960 --> 0:10:58.400 and so we like broad. 0:10:58.720 --> 0:11:01.600 Probably in the ten division audience around the world. Were 0:11:01.640 --> 0:11:04.559 speaking to Paramount Global CEO Bob Becket. It is Super 0:11:04.600 --> 0:11:08.080 Bowl weekend, and Bob, just what you were saying about 0:11:08.440 --> 0:11:09.840 the profile. 0:11:09.320 --> 0:11:11.640 Of the consumer on the platform. 0:11:11.679 --> 0:11:15.280 You know, I use the platform for Champions League football, 0:11:15.800 --> 0:11:18.320 and you have such a long season. With the Champions League, 0:11:18.320 --> 0:11:21.440 you have your in studio talent component, but you're also 0:11:21.520 --> 0:11:25.200 the ability to show multiple games in the same evening. 0:11:25.280 --> 0:11:27.680 You have choice, and at the end of the season 0:11:27.720 --> 0:11:29.800 you have a big finale and the NFL kind of 0:11:29.800 --> 0:11:32.079 works the same way. Right, you had a great regular season, 0:11:32.440 --> 0:11:36.600 as Caroline points out, but proportionately for your business, what's 0:11:36.640 --> 0:11:41.319 more important the big standalone single event this Sunday or 0:11:41.600 --> 0:11:44.120 the traction you get over the duration of a season. 0:11:46.520 --> 0:11:48.720 So a couple things. As we said, you know, the 0:11:48.840 --> 0:11:52.880 NFL this season set a record for CBS in terms 0:11:52.920 --> 0:11:55.960 of viewership since nineteen ninety eight, which is pretty extraordinary. 0:11:56.760 --> 0:11:59.880 And clearly the divisional playoff game, which also said an 0:11:59.880 --> 0:12:02.600 all time record, was important. But I think it's the 0:12:02.720 --> 0:12:04.920 arc of the whole thing. And frankly, there's nothing like 0:12:04.960 --> 0:12:07.960 the Super Bowl in the world, and obviously that's a 0:12:07.960 --> 0:12:10.720 big event for us, but you mentioned UEFA two. We 0:12:10.760 --> 0:12:13.720 love YUEFA. As you know, the UEFA season is going 0:12:13.800 --> 0:12:18.120 to start right after the American football season, and that 0:12:18.320 --> 0:12:23.080 is also a great product for fans of Paramount Plus. 0:12:23.720 --> 0:12:27.960 And we just extended that deal and the new format 0:12:28.080 --> 0:12:32.640 for UEFA includes a more exciting so I call it 0:12:32.679 --> 0:12:37.360 playoff format. So again, great product, and we do see 0:12:37.360 --> 0:12:42.840 people consuming that product alongside entertainment product. So we love sports, 0:12:43.120 --> 0:12:45.640 we love the NFL, we love YUEFA, and we love 0:12:45.679 --> 0:12:47.240 it as a part of Paramount Plus. 0:12:48.160 --> 0:12:51.120 Sound it interesting what you said about the consumption of 0:12:51.160 --> 0:12:55.760 non sports content. Halo season two prime example of that. 0:12:56.080 --> 0:12:58.800 You talk, it's about UEFA following the Super Bowl. How 0:12:58.880 --> 0:13:01.920 much will you be putting into advertizing this weekend? So 0:13:01.960 --> 0:13:04.440 why you've got to all those eyeballs you can say, hey, 0:13:04.720 --> 0:13:06.800 this is what else Paramount Plus is offering in the 0:13:06.800 --> 0:13:07.840 coming weeks and months. 0:13:10.640 --> 0:13:11.240 Great point. 0:13:11.640 --> 0:13:14.360 We are using the Super Bowl as a showcase for 0:13:14.440 --> 0:13:18.800 Paramount Global. I'm sitting here at our CBS set on 0:13:18.840 --> 0:13:21.720 the strip in front of the Bellagio. We had CBS 0:13:21.760 --> 0:13:24.920 Mornings going from here today and yesterday, and we have 0:13:25.120 --> 0:13:29.560 other properties operating here in Vegas. We are also using 0:13:29.600 --> 0:13:32.640 the Super Bowl as a promotional platform. So you see 0:13:32.640 --> 0:13:36.400 a new Pluto look and feel brand campaign rolling out, 0:13:36.440 --> 0:13:39.480 You see Paramount Plus spots. You see the Bob Marley 0:13:39.520 --> 0:13:43.320 movie which is opening on for Valentine's Day weekend. So yeah, 0:13:43.360 --> 0:13:46.880 we're showcasing Paramount Global to the biggest audience in the 0:13:46.880 --> 0:13:49.920 world on the biggest weekend in the world. And frankly, 0:13:50.000 --> 0:13:51.240 it's great to be in Vegas. 0:13:51.360 --> 0:13:53.319 It's a lecture, Bob. 0:13:53.880 --> 0:13:56.240 People see value, a lot of value in your content, 0:13:56.640 --> 0:13:58.480 and people therefore see value. 0:13:58.200 --> 0:13:59.080 In your company. 0:13:59.200 --> 0:14:01.120 And we know there's been plenty reports of a fording 0:14:01.160 --> 0:14:03.160 billion dollar offer for the business. 0:14:03.920 --> 0:14:08.199 Are you for sale? 0:14:08.920 --> 0:14:12.200 So look, as a management team and our board of directors, 0:14:12.240 --> 0:14:15.640 we are focused on shareholder value creations. The most predictable 0:14:16.600 --> 0:14:19.200 route to that is execution. So we are a laser 0:14:19.240 --> 0:14:24.320 focused on execution, driving Paramount Plus elongating earnings in the 0:14:24.360 --> 0:14:28.920 traditional media sector, opening movies, et cetera. But simultaneously or 0:14:28.920 --> 0:14:31.960 in parallel, we continue to look at other options as 0:14:32.000 --> 0:14:36.600 we have been, including transactional ones. So again a lot 0:14:36.640 --> 0:14:39.080 of activity. But I think what's important about it is 0:14:39.720 --> 0:14:43.800 it really shines a light on the incredible value of 0:14:43.880 --> 0:14:48.840 Paramount Global. We have an unmatched content engine in terms 0:14:48.840 --> 0:14:53.680 of our studios, new production, whether that's episodic series or films, 0:14:54.280 --> 0:14:58.720 as well as irreplaceable libraries across demographics, whether it's kids 0:14:58.720 --> 0:15:02.440 with Nickelodeon, adults, et cetera. So it's an extraordinary asset. 0:15:02.520 --> 0:15:05.600 We're focused on maximizing the value of that asset again 0:15:05.760 --> 0:15:08.680 day to day through execution, but also continue to. 0:15:08.680 --> 0:15:09.920 Look at other roots. 0:15:10.640 --> 0:15:12.600 And this is a sensitive one, Bob, but we've had 0:15:12.640 --> 0:15:15.480 analysts come on the show and say, you know, there 0:15:15.480 --> 0:15:18.400 are just too many players in the space, and you've 0:15:18.440 --> 0:15:19.200 got to be huge. 0:15:19.280 --> 0:15:21.280 You can't even just be medium sized. 0:15:21.600 --> 0:15:25.120 From your perspective with Paramount Plus and streaming, are you 0:15:25.200 --> 0:15:27.800 getting to profitability? I know you've got your earnings around 0:15:27.800 --> 0:15:30.280 the corner, but how soon can you sort of deliver 0:15:30.320 --> 0:15:31.640 that because I know you spoke to that in the 0:15:31.680 --> 0:15:32.840 third quarter for example. 0:15:35.120 --> 0:15:36.760 Yeah, So i'd tell you a couple of things. One is, 0:15:36.800 --> 0:15:38.840 you're right that narrative is out there. There are people 0:15:38.880 --> 0:15:40.960 with that point of view. But i'd point to our 0:15:41.000 --> 0:15:44.920 third quarter call where we continue to show paramount plus 0:15:45.040 --> 0:15:48.080 is a growing service, continues to have the most net 0:15:48.120 --> 0:15:52.480 ads of any streaming service since we launched point one 0:15:52.560 --> 0:15:56.760 point two is On our third quarter call, we talked 0:15:56.760 --> 0:15:58.760 about the fact that we expect and I have to 0:15:58.760 --> 0:16:00.920 be careful with my word choice here because, as you 0:16:00.960 --> 0:16:03.200 point out, our fourth quarter calls in two weeks, but 0:16:03.320 --> 0:16:06.600 we expect twenty twenty two was in fact our peak 0:16:06.640 --> 0:16:09.920 streaming investment, not twenty twenty three, which we guided to. 0:16:10.480 --> 0:16:12.640 That says we're head of plan on the path to 0:16:12.720 --> 0:16:16.480 profitability for streaming, and we're very excited about twenty twenty four. 0:16:16.760 --> 0:16:18.840 But I'll have to leave it at that until our 0:16:18.840 --> 0:16:21.000 earnings call in a couple of weeks, where we'll have 0:16:21.040 --> 0:16:21.640 more to say. 0:16:22.840 --> 0:16:25.280 Bob, a Global CEO, has to pass a lot of 0:16:25.360 --> 0:16:29.760 data quantify the impact of Taylor Swift for me on 0:16:29.800 --> 0:16:31.320 this Sunday Super Bowl. 0:16:33.880 --> 0:16:37.360 Look, Taylor's obviously a phenomenon. She's a force in music. 0:16:37.520 --> 0:16:39.360 For all of us that have seen her tour, it's 0:16:39.400 --> 0:16:44.400 incredible and she has, without a doubt been incremental to 0:16:45.120 --> 0:16:47.840 audience on the NFL. There's different points of view on 0:16:47.880 --> 0:16:52.720 how incremental, but she's a great addition, widening the net 0:16:52.880 --> 0:16:56.600 of the NFL viewer even further. We're looking forward to 0:16:56.640 --> 0:16:59.880 having her here in Vegas this weekend at the game, 0:17:00.600 --> 0:17:03.320 and I think it'll be just an incremental thing. But 0:17:03.360 --> 0:17:07.400 the main point is the NFL on CBS and Paramount 0:17:07.400 --> 0:17:10.520 Plus is just an extraordinary property. As I said, we 0:17:10.600 --> 0:17:13.040 set the high watermark already for a Super Bowl in 0:17:13.119 --> 0:17:17.000 terms of ad revenue. It's looking like we will set 0:17:17.160 --> 0:17:20.400 the high watermark on viewing. And is Taylor part of that. Yeah, 0:17:20.440 --> 0:17:22.960 she probably is an incremental part of that. But it's 0:17:23.040 --> 0:17:23.480 just great. 0:17:24.040 --> 0:17:26.000 I'm tuning in for usher to gott to be said 0:17:26.080 --> 0:17:28.680 Paramount Global CEO Bob Backish, it is so good to 0:17:28.720 --> 0:17:29.240 speak with you. 0:17:29.280 --> 0:17:32.600 Thank you very much, indeed, thank you. 0:17:35.160 --> 0:17:35.520 All right. 0:17:35.520 --> 0:17:38.639 Coming up, X is teaming up with the WWE for 0:17:38.680 --> 0:17:42.520 an exclusive weekly series. We hear from Bette White's ex 0:17:42.560 --> 0:17:45.920 Headed Partnerships and Talent on that deal. Next to disclam 0:17:45.960 --> 0:17:58.679 their technology, a WWE series is coming weekly to X. 0:17:58.760 --> 0:18:01.679 Brett White's X headed part Since Talent outlined it all 0:18:01.720 --> 0:18:03.040 for us earlier have listened. 0:18:03.200 --> 0:18:05.240 We couldn't be more excited obviously about the new initiative 0:18:05.280 --> 0:18:08.720 that we're doing with WWE. We announced the partnership yesterday. 0:18:08.800 --> 0:18:10.800 We are in market here in the next you know, 0:18:10.880 --> 0:18:14.919 call it five days with assets to start selling the show. 0:18:15.280 --> 0:18:18.080 We've got a lot of interest we you know, XES 0:18:18.240 --> 0:18:20.760 what I would say, the home for wrestling fans. 0:18:21.600 --> 0:18:24.199 We are We're going to go very big when it 0:18:24.200 --> 0:18:25.320 comes to this. 0:18:25.600 --> 0:18:29.360 What this offering is the idea of catering to an audience. 0:18:29.600 --> 0:18:32.760 Last year alone, we had fifty nine billion impressions when 0:18:32.760 --> 0:18:34.520 it came to wrestling alone. 0:18:34.760 --> 0:18:35.920 So the idea that we can. 0:18:35.880 --> 0:18:40.639 Actually super serve this this incredible content to you know, 0:18:41.160 --> 0:18:43.600 an audience that is there is that is vibrant and 0:18:43.600 --> 0:18:45.320 waiting for it couldn't be more exciting for us. 0:18:45.440 --> 0:18:47.200 So we are ready to go and in market. 0:18:47.680 --> 0:18:49.919 When does this turn profitable? 0:18:50.000 --> 0:18:52.440 How many of these types of partnerships do you need 0:18:52.760 --> 0:18:54.320 to really make money off of this? 0:18:56.040 --> 0:18:58.040 That's a great question. I mean it really is, you know. 0:18:58.080 --> 0:18:59.879 When you when we've worked with Nick con and his 0:19:00.160 --> 0:19:03.879 team trying to figure out exactly what the mechanics are financially, 0:19:04.280 --> 0:19:07.600 we are we're going to be playing this these episodes 0:19:07.640 --> 0:19:09.919 once or twice a week on X. They're going to 0:19:09.920 --> 0:19:14.119 be on platform, you know, for in perpetuity honestly, and 0:19:14.160 --> 0:19:15.359 we'll start making money. 0:19:15.840 --> 0:19:16.960 You know, over the course of the year. 0:19:17.000 --> 0:19:19.720 We'll see how the financials actually work out, but the 0:19:21.000 --> 0:19:24.359 investment that we're making the content really is you know, 0:19:25.080 --> 0:19:27.120 at some point will become profitable, probably in the next 0:19:27.160 --> 0:19:27.439 couple of. 0:19:27.480 --> 0:19:28.840 Years, I think. 0:19:29.000 --> 0:19:30.879 You know, there's been a lot of news this morning 0:19:30.960 --> 0:19:34.120 coming out of X you also have the Super Bowl 0:19:34.200 --> 0:19:37.800 and bet related stuff. But just lay out the partnership strategy. 0:19:37.880 --> 0:19:42.480 Your your job title is head of Partnerships and Talent Verticals. 0:19:42.480 --> 0:19:45.480 Do you expect to move into your backgrounds in wrestling 0:19:45.880 --> 0:19:49.159 over at turn and other things? But there is a 0:19:49.200 --> 0:19:52.760 difference here between pure sports, live entertainment and then you're 0:19:52.760 --> 0:19:54.160 doing a lot of news as well. 0:19:55.520 --> 0:19:57.119 We are And so I got here, thank you. 0:19:57.480 --> 0:19:59.080 When I got here four months ago, I really kind 0:19:59.080 --> 0:20:01.800 of went on a listening to and trying to figure 0:20:01.840 --> 0:20:03.840 out exactly kind of what the audience was looking for, 0:20:03.920 --> 0:20:07.880 what consumers wanted, and it is news, it's entertainment, it's fashion, 0:20:08.280 --> 0:20:10.680 it is sports, and it is wrestling. And so when 0:20:10.720 --> 0:20:12.720 we look at the when we look at the portfolio, 0:20:12.800 --> 0:20:15.040 we have an incredible relationship with all of our sports 0:20:15.119 --> 0:20:20.520