1 00:00:11,720 --> 00:00:15,640 Speaker 1: Welcome to Strictly Business Righty's weekly podcast featuring conversations with 2 00:00:15,720 --> 00:00:19,000 Speaker 1: industry leaders about the business of media and entertainment. I'm 3 00:00:19,040 --> 00:00:22,319 Speaker 1: Cynthia Lyttleton, co editor in chief of Variety Today. My 4 00:00:22,400 --> 00:00:26,599 Speaker 1: guest is Kelly Merriman Hogstratton, CEO of The Wonder Project. 5 00:00:26,640 --> 00:00:28,920 Speaker 1: The Wonder Project is a media brand that has taken 6 00:00:28,960 --> 00:00:31,560 Speaker 1: off like a rocket over the past two years. The 7 00:00:31,680 --> 00:00:35,560 Speaker 1: independent studio, launched by hog Stratton and filmmaker John Irwin, 8 00:00:35,960 --> 00:00:38,320 Speaker 1: set out to make movies and TV shows rooted in 9 00:00:38,440 --> 00:00:43,000 Speaker 1: four pillars, God, Country, family, and dreams, and they were right. 10 00:00:43,400 --> 00:00:46,040 Speaker 1: There was a void in the market. The Wonder Project 11 00:00:46,040 --> 00:00:48,920 Speaker 1: has touched a nerve with its Amazon Prime video series 12 00:00:49,000 --> 00:00:53,040 Speaker 1: House of David. The company's first feature film, Sarah's Oil, 13 00:00:53,440 --> 00:00:57,720 Speaker 1: is hitting the multiplexes this week, distributed by Amazon MGM Studios. 14 00:00:57,960 --> 00:01:00,720 Speaker 1: The company has raised one hundred million dollars from top 15 00:01:00,720 --> 00:01:04,960 Speaker 1: flight media investors, and just last month they launched a 16 00:01:05,000 --> 00:01:09,839 Speaker 1: subscription Wonder Project streaming platform in partnership with Amazon. They've 17 00:01:09,840 --> 00:01:12,520 Speaker 1: built a solid brand in a short time. I broke 18 00:01:12,560 --> 00:01:15,600 Speaker 1: the news and variety of this company's founding in December 19 00:01:15,600 --> 00:01:19,039 Speaker 1: twenty twenty three. Hog Stratton is a veteran of Netflix 20 00:01:19,120 --> 00:01:21,600 Speaker 1: and YouTube. At the time of the company's launch two 21 00:01:21,680 --> 00:01:25,640 Speaker 1: years ago, hog Stratton explained the unmet demand that she 22 00:01:25,760 --> 00:01:29,160 Speaker 1: saw in the content landscape at the time. She told me, quote, 23 00:01:29,360 --> 00:01:32,200 Speaker 1: we need to create a scaled solution for the heartland, 24 00:01:32,440 --> 00:01:34,720 Speaker 1: for the audience that goes to school with my kids. 25 00:01:34,880 --> 00:01:37,720 Speaker 1: End quote. Here we get a progress report on how 26 00:01:37,760 --> 00:01:46,039 Speaker 1: that's going. Kelly Merriman, Hoaxtratten. Thank you so much for 27 00:01:46,120 --> 00:01:46,919 Speaker 1: joining me today. 28 00:01:47,040 --> 00:01:49,200 Speaker 2: It's great to be here. Thanks for having me, Cynthia. 29 00:01:50,000 --> 00:01:52,440 Speaker 1: We've been wanting to do this conversation for a long time. 30 00:01:52,560 --> 00:01:55,680 Speaker 1: I have taken a keen interest in the Wonder Project. 31 00:01:55,800 --> 00:01:58,840 Speaker 1: I wrote the first story on the launch of this company, 32 00:01:58,960 --> 00:02:01,560 Speaker 1: and it's one month almost to the day, one day 33 00:02:01,600 --> 00:02:07,160 Speaker 1: shy of the launch of Wonder Projects subscription platform that 34 00:02:07,240 --> 00:02:10,760 Speaker 1: you have launched through the Amazon Prime Video ecosystem. But 35 00:02:10,840 --> 00:02:13,480 Speaker 1: let me step back just a little bit and ask you. 36 00:02:14,280 --> 00:02:17,280 Speaker 1: The Wonder Project subscription platform was in the works for 37 00:02:17,320 --> 00:02:19,280 Speaker 1: a long time, But how did it feel for you 38 00:02:19,680 --> 00:02:22,399 Speaker 1: on October fifth when you went live and you could 39 00:02:22,480 --> 00:02:26,880 Speaker 1: see the retail display of the Wonder Project. How did 40 00:02:26,919 --> 00:02:29,120 Speaker 1: that feel for you as a business person? 41 00:02:29,240 --> 00:02:32,000 Speaker 3: It's really hard to describe the excitement that we felt 42 00:02:32,040 --> 00:02:35,600 Speaker 3: for anybody who has launched a product or a service. 43 00:02:36,160 --> 00:02:38,560 Speaker 3: If we have forty five folks in the company, and 44 00:02:38,880 --> 00:02:42,680 Speaker 3: when we founded Wonder Project, John Irwin and I had 45 00:02:42,720 --> 00:02:45,200 Speaker 3: this dream of a three legged stool that would have 46 00:02:45,240 --> 00:02:49,920 Speaker 3: a production studio and a distribution platform and a brand. 47 00:02:50,400 --> 00:02:54,040 Speaker 3: And to think that in twenty twenty five we have 48 00:02:54,120 --> 00:02:56,800 Speaker 3: been able to accomplish all three legs of the stool 49 00:02:57,320 --> 00:03:00,000 Speaker 3: is really incredible. So as you can imagine, on October fifth, 50 00:03:00,320 --> 00:03:03,160 Speaker 3: when that third leg of the stool stood up and 51 00:03:03,200 --> 00:03:07,680 Speaker 3: we just let out a celebratory cry to recognize that 52 00:03:08,440 --> 00:03:11,120 Speaker 3: what we had dreamed about was now a reality. 53 00:03:12,040 --> 00:03:14,640 Speaker 1: I want to underscore here I wrote this story on 54 00:03:14,720 --> 00:03:18,560 Speaker 1: December sixth, twenty twenty three, so I know the company 55 00:03:18,639 --> 00:03:20,680 Speaker 1: was in the works before that, but this is an 56 00:03:20,680 --> 00:03:24,639 Speaker 1: incredible response to the business case that you made from 57 00:03:25,040 --> 00:03:28,920 Speaker 1: the very beginning that this was an underserved audience. So 58 00:03:29,000 --> 00:03:30,880 Speaker 1: let me ask you, now that you're about a month in, 59 00:03:31,320 --> 00:03:33,440 Speaker 1: what kind of information are you getting now that you 60 00:03:33,560 --> 00:03:36,560 Speaker 1: have basically your own D two C platform. Amazon's been 61 00:03:36,600 --> 00:03:40,000 Speaker 1: such an incredible partner. Part of what I have learned 62 00:03:40,040 --> 00:03:44,760 Speaker 1: over time is that success is a combination of the 63 00:03:44,800 --> 00:03:47,840 Speaker 1: people you have, the strategy, and timing, and so what 64 00:03:47,880 --> 00:03:50,040 Speaker 1: we've been able to accomplish over the course of the 65 00:03:50,120 --> 00:03:54,880 Speaker 1: last two years is in part because our time had come. 66 00:03:55,600 --> 00:03:59,040 Speaker 1: I feel blessed to be a steward leading this company 67 00:03:59,040 --> 00:04:01,000 Speaker 1: at this moment in time. And part of that was 68 00:04:01,040 --> 00:04:03,600 Speaker 1: the first look deal that we had with Amazon that 69 00:04:03,640 --> 00:04:06,400 Speaker 1: we announced in January of twenty four and their belief 70 00:04:06,880 --> 00:04:11,360 Speaker 1: both in this audience and in our ability to program 71 00:04:11,400 --> 00:04:14,560 Speaker 1: for this audience. So as we leaned in with Amazon, 72 00:04:14,640 --> 00:04:16,920 Speaker 1: and then the huge success of House of David in 73 00:04:17,000 --> 00:04:21,000 Speaker 1: February of this year for season one, culminating in forty 74 00:04:21,040 --> 00:04:24,640 Speaker 1: four million viewers globally, I think we and Amazon were 75 00:04:24,680 --> 00:04:28,159 Speaker 1: both really excited about finding a way to tap into 76 00:04:28,440 --> 00:04:33,640 Speaker 1: this audience, and a month in, we are just blown 77 00:04:33,680 --> 00:04:38,679 Speaker 1: away by the excitement and engagement that we are seeing 78 00:04:38,880 --> 00:04:43,000 Speaker 1: from this audience. And it really helps us because we 79 00:04:43,200 --> 00:04:47,960 Speaker 1: are also a production company that is selling our shows 80 00:04:48,279 --> 00:04:51,920 Speaker 1: and inside of Hollywood, because we really find that being 81 00:04:51,960 --> 00:04:55,839 Speaker 1: a partner to Amazon and Sonia, TriStar and Angel and others, 82 00:04:56,640 --> 00:04:59,440 Speaker 1: we want to showcase that we actually understand our audience 83 00:05:00,240 --> 00:05:02,760 Speaker 1: and that our audience is everywhere, and so this is 84 00:05:02,760 --> 00:05:05,400 Speaker 1: a great proof point for us to showcase and share 85 00:05:05,440 --> 00:05:08,480 Speaker 1: with them. It is also an amazing proof point to 86 00:05:08,520 --> 00:05:10,440 Speaker 1: say we know how to reach and speak to our 87 00:05:10,480 --> 00:05:14,280 Speaker 1: audience and that this brand really is standing for something. 88 00:05:14,800 --> 00:05:17,240 Speaker 1: This is an aside, but it's a fun data point 89 00:05:17,360 --> 00:05:19,960 Speaker 1: for you, which is we just did an awareness study 90 00:05:20,240 --> 00:05:23,960 Speaker 1: and we have thirty percent aided awareness on Wonder Project, 91 00:05:24,040 --> 00:05:27,599 Speaker 1: which is just unbelievable for a brand that has basically 92 00:05:27,640 --> 00:05:30,840 Speaker 1: been extant for less than two years, just under two years. 93 00:05:30,960 --> 00:05:34,120 Speaker 3: It's really special and it validates for us again that 94 00:05:34,160 --> 00:05:37,880 Speaker 3: we have a very large, hungry audience that wants to 95 00:05:37,920 --> 00:05:40,120 Speaker 3: be engaged, that wants to belong, and we think we 96 00:05:40,200 --> 00:05:43,800 Speaker 3: have the right programming and the right distribution channel in 97 00:05:43,880 --> 00:05:44,719 Speaker 3: order to reach them. 98 00:05:44,880 --> 00:05:46,920 Speaker 1: I can imagine just a kid in the candy store. 99 00:05:46,920 --> 00:05:50,159 Speaker 1: In terms of understanding what your audience gravitates to, what 100 00:05:50,360 --> 00:05:52,839 Speaker 1: has surprised you, I'm guessing House of David is a 101 00:05:52,839 --> 00:05:55,400 Speaker 1: big show that people often check out first. But has 102 00:05:55,440 --> 00:05:57,279 Speaker 1: there been anything in terms of the first thing that 103 00:05:57,320 --> 00:05:59,480 Speaker 1: people go to or the show that they go to 104 00:05:59,600 --> 00:06:02,120 Speaker 1: after they've watched a couple of episodes of this any 105 00:06:02,160 --> 00:06:04,200 Speaker 1: connective tissue there that has surprised you. 106 00:06:05,160 --> 00:06:06,080 Speaker 2: It's a great question. 107 00:06:06,160 --> 00:06:08,360 Speaker 3: I spent a lot of time at Netflix in the 108 00:06:08,400 --> 00:06:11,680 Speaker 3: early days, and between twenty ten and twenty fifteen, I 109 00:06:11,760 --> 00:06:16,279 Speaker 3: was leading international expansion for Netflix, and that meant launching 110 00:06:16,279 --> 00:06:19,760 Speaker 3: in almost fifty countries and territories over that five year period. 111 00:06:20,279 --> 00:06:23,159 Speaker 3: And through that process we really started to learn that 112 00:06:23,240 --> 00:06:26,560 Speaker 3: programming is part art and part science. I have an 113 00:06:26,600 --> 00:06:30,839 Speaker 3: amazing programming team, small and mighty over here at Wonder 114 00:06:30,880 --> 00:06:33,360 Speaker 3: and I think the team did just an amazing job 115 00:06:33,360 --> 00:06:37,040 Speaker 3: of trying to create a set of programming for television 116 00:06:37,160 --> 00:06:42,280 Speaker 3: and film that really reached a broad set of genres, 117 00:06:42,480 --> 00:06:46,320 Speaker 3: age groups, demographics. I think probably the most surprising data 118 00:06:46,360 --> 00:06:49,120 Speaker 3: point for me is that we have over one thousand 119 00:06:49,200 --> 00:06:54,240 Speaker 3: hours of programming on the platform and ninety five percent 120 00:06:54,520 --> 00:06:57,880 Speaker 3: of what we put out there was watched in October. So, 121 00:06:58,080 --> 00:07:00,760 Speaker 3: first of all, big gold star to my program because 122 00:07:00,760 --> 00:07:03,760 Speaker 3: that is just unbelievable. But also in addition to that, 123 00:07:03,880 --> 00:07:08,680 Speaker 3: what we're seeing is real diversity in genres. We need 124 00:07:08,720 --> 00:07:10,720 Speaker 3: to study the data over the first ninety to one 125 00:07:10,760 --> 00:07:13,440 Speaker 3: hundred days and then we can really fill in the 126 00:07:13,480 --> 00:07:16,280 Speaker 3: gaps and make deeper bet. 127 00:07:16,120 --> 00:07:20,560 Speaker 1: Your experience of building Netflix must be invaluable in navigating 128 00:07:20,680 --> 00:07:23,000 Speaker 1: the early months of launching your own d twocy. 129 00:07:23,200 --> 00:07:25,600 Speaker 3: Part of it is the muscle memory, but a lot 130 00:07:25,680 --> 00:07:29,960 Speaker 3: of it is the patience, the test and iterate mentality, 131 00:07:30,400 --> 00:07:34,440 Speaker 3: and the ability to say, Okay, I need to understand 132 00:07:34,440 --> 00:07:36,160 Speaker 3: the data, but I don't want to make too many 133 00:07:36,200 --> 00:07:39,640 Speaker 3: decisions too quickly. I want to marinate in that data 134 00:07:39,680 --> 00:07:42,040 Speaker 3: a little bit and to figure out how to take 135 00:07:42,080 --> 00:07:44,000 Speaker 3: your emotions out of some of the things that are 136 00:07:44,040 --> 00:07:46,680 Speaker 3: working or aren't working, so you're not celebrating too quickly 137 00:07:46,720 --> 00:07:48,880 Speaker 3: and you're not feeling failure too quickly. 138 00:07:49,120 --> 00:07:51,440 Speaker 1: The presence of the Wonder Project and the presence of 139 00:07:51,480 --> 00:07:54,040 Speaker 1: House of David and now filmmakers like John Irvan that 140 00:07:54,280 --> 00:07:57,200 Speaker 1: the audience is really coming to follow. I would imagine 141 00:07:57,240 --> 00:08:01,680 Speaker 1: that alone has galvanized an audience that was looking for 142 00:08:01,760 --> 00:08:06,560 Speaker 1: content that they weren't finding readily finding in other mainstream platforms. 143 00:08:07,200 --> 00:08:09,680 Speaker 1: I would imagine that that audience is now you know, 144 00:08:09,800 --> 00:08:14,120 Speaker 1: kind of growing and also maybe even more active in 145 00:08:14,160 --> 00:08:16,480 Speaker 1: a community because they have a show like a House 146 00:08:16,520 --> 00:08:17,520 Speaker 1: of David focus on. 147 00:08:17,560 --> 00:08:20,640 Speaker 3: You say, part of our mission is restoring faith and 148 00:08:20,680 --> 00:08:24,240 Speaker 3: things worth believing in. To your point, for us. That's 149 00:08:24,280 --> 00:08:29,120 Speaker 3: four areas, God, Country, Family, and dreams. And if we 150 00:08:29,240 --> 00:08:33,240 Speaker 3: start at that very broad definition, you can look at 151 00:08:33,240 --> 00:08:37,040 Speaker 3: the box office this summer and say, wow, the vast 152 00:08:37,080 --> 00:08:41,720 Speaker 3: majority of the successful titles were PG titles that were 153 00:08:41,800 --> 00:08:43,360 Speaker 3: family viewing title. 154 00:08:43,760 --> 00:08:46,120 Speaker 1: Let's talk a little bit about the studio side of 155 00:08:46,160 --> 00:08:49,320 Speaker 1: your business. How are you looking to grow that business? 156 00:08:49,440 --> 00:08:51,240 Speaker 3: The way and I think about the studio side of 157 00:08:51,240 --> 00:08:54,080 Speaker 3: the business is this is our owned originals. These are 158 00:08:54,120 --> 00:08:57,400 Speaker 3: the stories that we are uniquely positioned to tell in 159 00:08:57,480 --> 00:09:00,920 Speaker 3: the marketplace right now. And those are high call, courageous 160 00:09:00,960 --> 00:09:06,920 Speaker 3: stories that span all four areas of restoring faith, God, Country, family, 161 00:09:07,120 --> 00:09:11,200 Speaker 3: and dreams. You know, I love theatrical films and I 162 00:09:11,280 --> 00:09:14,360 Speaker 3: think that it helps build your brand and it brings 163 00:09:14,400 --> 00:09:17,480 Speaker 3: community together. And so from a film perspective, we would 164 00:09:17,520 --> 00:09:19,680 Speaker 3: love to be able to get two films a year 165 00:09:19,720 --> 00:09:22,640 Speaker 3: into theaters and next year we're really excited to be 166 00:09:22,640 --> 00:09:24,959 Speaker 3: able to do that. And this week we're going to 167 00:09:25,040 --> 00:09:29,120 Speaker 3: have our first theatrical film in the marketplace. On November seventh, 168 00:09:29,520 --> 00:09:33,560 Speaker 3: Sarah's Oil, released by MGM, is going to be in theaters. 169 00:09:33,679 --> 00:09:38,800 Speaker 3: It tells the story of one of America's first female 170 00:09:38,840 --> 00:09:42,640 Speaker 3: black millionaires and she happens to be an eleven year 171 00:09:42,640 --> 00:09:47,440 Speaker 3: old girl in Oklahoma in nineteen ten. And this story, 172 00:09:47,840 --> 00:09:50,600 Speaker 3: I can't believe it hasn't been told on the screen. 173 00:09:51,080 --> 00:09:56,280 Speaker 3: It is so powerful. Sarah Rector is granted one hundred 174 00:09:56,320 --> 00:10:00,120 Speaker 3: and sixty acres from Oklahoma that they think is just 175 00:10:00,920 --> 00:10:04,720 Speaker 3: dead land, but she is convinced, she has faith that 176 00:10:04,760 --> 00:10:08,760 Speaker 3: there is oil on this land. And then the oil 177 00:10:08,760 --> 00:10:12,400 Speaker 3: barons realize there is oil on this land and they've 178 00:10:12,400 --> 00:10:15,119 Speaker 3: tri and fight her for it, and a crazy wildcatter 179 00:10:15,440 --> 00:10:21,800 Speaker 3: played by Zach Levi basically stands up alongside this amazing. 180 00:10:21,480 --> 00:10:23,640 Speaker 2: New actress, Naya Desteer Johnson. 181 00:10:23,800 --> 00:10:28,160 Speaker 3: And it is such a special story that is told 182 00:10:28,640 --> 00:10:31,160 Speaker 3: on the big screen. And I was in Kansas City 183 00:10:31,280 --> 00:10:35,240 Speaker 3: last week for the premiere because Sarah Rector actually moved 184 00:10:35,280 --> 00:10:38,520 Speaker 3: from Oklahoma to Kansas City and really did so much 185 00:10:38,559 --> 00:10:41,480 Speaker 3: for that city over the last one hundred years. And 186 00:10:42,040 --> 00:10:45,559 Speaker 3: we screened, we had the premiere there, We had her 187 00:10:45,920 --> 00:10:51,080 Speaker 3: aunts up there, her grandchildren, and they made announcement. It 188 00:10:51,120 --> 00:10:53,360 Speaker 3: was maybe five hundred people in the audience and they said, 189 00:10:53,600 --> 00:10:56,560 Speaker 3: if you have any relationship to Sarah Rector, please stand up. 190 00:10:56,600 --> 00:10:58,720 Speaker 3: And there must have been sixty seventy people in the 191 00:10:58,800 --> 00:11:03,040 Speaker 3: audience standing up. So can you imagine seeing your family's 192 00:11:03,120 --> 00:11:05,520 Speaker 3: story on the big screen and it is just so 193 00:11:05,640 --> 00:11:09,360 Speaker 3: power She is a spitfire and it is just such 194 00:11:09,400 --> 00:11:12,680 Speaker 3: a heartwarming, wonderful story about dreams and faith. 195 00:11:13,520 --> 00:11:16,840 Speaker 1: How are you, guys navigating film economics? How have you 196 00:11:16,960 --> 00:11:21,320 Speaker 1: navigated those economics to make a theatrical release viable for you? 197 00:11:22,120 --> 00:11:24,360 Speaker 3: One of the gifts of being in partnership with John 198 00:11:24,400 --> 00:11:28,640 Speaker 3: Irwin has been in the independent film market for over 199 00:11:28,679 --> 00:11:32,800 Speaker 3: a decade. His brain is entrepreneurial as much as it 200 00:11:32,880 --> 00:11:36,000 Speaker 3: is creative, and so he truly understands the dynamics. So 201 00:11:36,200 --> 00:11:40,160 Speaker 3: first and foremost is really important to keep the cost 202 00:11:40,600 --> 00:11:45,040 Speaker 3: of production down, and so we work incredibly hard to 203 00:11:45,120 --> 00:11:48,280 Speaker 3: take advantage of every tax incentive and to try and 204 00:11:48,400 --> 00:11:53,559 Speaker 3: create a budget that actually works. Truthfully, This ability to 205 00:11:53,679 --> 00:11:58,480 Speaker 3: lean into innovation in post production and VFX is also 206 00:11:58,520 --> 00:12:01,520 Speaker 3: another way to try and put more on the screen. 207 00:12:02,160 --> 00:12:05,240 Speaker 3: The second piece is being sure people show up for 208 00:12:05,640 --> 00:12:10,440 Speaker 3: the theatrical release, and so from our perspective from the beginning, 209 00:12:10,559 --> 00:12:13,600 Speaker 3: creating a brand and an audience was really important to 210 00:12:13,679 --> 00:12:18,520 Speaker 3: us because being a partner with Amazon MGM on trying 211 00:12:18,520 --> 00:12:21,800 Speaker 3: to work through the go to market strategy for any 212 00:12:21,840 --> 00:12:26,120 Speaker 3: film is really critical for us, and so what does 213 00:12:26,120 --> 00:12:29,160 Speaker 3: that look like. How do we help make this an 214 00:12:29,160 --> 00:12:32,720 Speaker 3: event for our audience and not be crazy, not say like, oh, 215 00:12:32,720 --> 00:12:34,880 Speaker 3: I'm going to get one hundred million dollars. The question 216 00:12:35,080 --> 00:12:38,240 Speaker 3: is what is the right budget and the right box 217 00:12:38,280 --> 00:12:41,600 Speaker 3: office for this story and this audience. And if you 218 00:12:41,640 --> 00:12:45,080 Speaker 3: can get those two numbers right, you can make it work. 219 00:12:45,400 --> 00:12:49,200 Speaker 1: Let me ask you the same question about producing television series. 220 00:12:49,280 --> 00:12:52,880 Speaker 3: We are grateful for our partnership with Amazon. One of 221 00:12:52,880 --> 00:12:56,760 Speaker 3: the things that we crafted with Amazon from the beginning 222 00:12:56,880 --> 00:13:00,600 Speaker 3: was saying, we think this costplus model is broken, and 223 00:13:00,800 --> 00:13:02,679 Speaker 3: so we're not going to come in and ask for that. 224 00:13:02,920 --> 00:13:05,880 Speaker 3: Let's create something different. And I think that was such 225 00:13:05,880 --> 00:13:10,640 Speaker 3: a refreshing statement to hear from a production company. We said, no, 226 00:13:10,679 --> 00:13:12,520 Speaker 3: we want to bet on ourselves. We want to bet 227 00:13:12,559 --> 00:13:15,520 Speaker 3: on our own success. So let's create a different model. 228 00:13:16,040 --> 00:13:20,400 Speaker 3: Let's embrace multiple windows again. Because, by the way, the 229 00:13:20,440 --> 00:13:27,040 Speaker 3: windowing structure for great shows worked incredibly well twenty years ago. 230 00:13:27,400 --> 00:13:31,320 Speaker 1: Right those big check photos that everybody had, those economic 231 00:13:31,400 --> 00:13:33,720 Speaker 1: events that aren't happening as much. 232 00:13:33,960 --> 00:13:37,320 Speaker 3: Look, the cost plus model takes all the risk out 233 00:13:37,480 --> 00:13:42,200 Speaker 3: of the business for a production studio. But it also 234 00:13:42,360 --> 00:13:48,560 Speaker 3: doesn't incentivize a plus plus plus programming. It incentivizes good 235 00:13:48,679 --> 00:13:51,040 Speaker 3: enough programming to move on to the next show that 236 00:13:51,080 --> 00:13:54,200 Speaker 3: you're going to make because there's no backend. So what 237 00:13:54,240 --> 00:13:56,880 Speaker 3: does it look like when you say, like, wait, let's 238 00:13:56,920 --> 00:14:00,840 Speaker 3: be sure we're making amazing stuff that actually has windows 239 00:14:00,880 --> 00:14:04,560 Speaker 3: that are short enough that we can actually create multiple 240 00:14:04,600 --> 00:14:07,840 Speaker 3: windows and other back end that everybody can get excited about. 241 00:14:07,880 --> 00:14:11,920 Speaker 3: And for Amazon, we said, let's try a new structure 242 00:14:12,400 --> 00:14:16,560 Speaker 3: where we have early access for a subset of our 243 00:14:16,640 --> 00:14:21,560 Speaker 3: viewers on Wonder channel that really value what Wonder is creating. 244 00:14:22,040 --> 00:14:25,960 Speaker 3: That is a curated a channel for our most loyal 245 00:14:26,040 --> 00:14:29,840 Speaker 3: viewers and early access a house of David and our 246 00:14:29,880 --> 00:14:33,120 Speaker 3: other shows. And then we can have the second window 247 00:14:33,320 --> 00:14:36,520 Speaker 3: on Prime Video. And so this idea that we are 248 00:14:36,560 --> 00:14:40,120 Speaker 3: actually launching from the beginning a two windows strategy that 249 00:14:40,200 --> 00:14:43,280 Speaker 3: can have two bytes at an Apple around driving value. 250 00:14:43,480 --> 00:14:47,000 Speaker 3: And as you know Amazon Prime channels, Amazon takes a 251 00:14:47,040 --> 00:14:52,200 Speaker 3: cut of every subscriber sure, and so there is now 252 00:14:52,240 --> 00:14:55,400 Speaker 3: they have a two revenue system as well. And so 253 00:14:56,160 --> 00:14:59,520 Speaker 3: we're trying this. I you know, I'm really grateful that 254 00:14:59,560 --> 00:15:02,720 Speaker 3: a lot of the folks at Amazon. I also embrace 255 00:15:02,880 --> 00:15:06,800 Speaker 3: the test and iterate process of let's try this because 256 00:15:07,480 --> 00:15:09,840 Speaker 3: we need a different model than what we've been doing 257 00:15:09,880 --> 00:15:11,400 Speaker 3: for the last ten years. 258 00:15:11,480 --> 00:15:14,800 Speaker 1: The company launched with some pretty impressive partners as investors. 259 00:15:15,200 --> 00:15:19,280 Speaker 1: UTA producer Jason Blum. How has that gone? Are your 260 00:15:19,320 --> 00:15:21,040 Speaker 1: original investors still on board? 261 00:15:22,040 --> 00:15:22,400 Speaker 2: They are. 262 00:15:22,720 --> 00:15:25,320 Speaker 3: We're grateful to all of our investors. We had a 263 00:15:25,360 --> 00:15:28,200 Speaker 3: set of seed investors and then more folks come in 264 00:15:28,280 --> 00:15:30,800 Speaker 3: for the A. We've raised over one hundred million dollars 265 00:15:30,800 --> 00:15:33,840 Speaker 3: at this point in time, and they've all continued to 266 00:15:34,320 --> 00:15:37,560 Speaker 3: stand alongside us and cheer us on, and we're really 267 00:15:37,560 --> 00:15:38,720 Speaker 3: excited for what's to come. 268 00:15:39,120 --> 00:15:42,600 Speaker 1: I know you've done work with Angel Studios and Angel 269 00:15:42,600 --> 00:15:47,080 Speaker 1: Studios earlier this year initiated an IPO through a SPAC process. 270 00:15:47,360 --> 00:15:49,920 Speaker 1: Is that anything you've thought about in terms of scaling 271 00:15:49,960 --> 00:15:51,480 Speaker 1: and going into the public markets. 272 00:15:52,560 --> 00:15:54,920 Speaker 3: You know, as a CEO, you always want to keep 273 00:15:55,000 --> 00:15:59,360 Speaker 3: as many exit options available as possible, because that seems 274 00:15:59,440 --> 00:16:04,200 Speaker 3: too increase the chance of raising capital from as broad 275 00:16:04,320 --> 00:16:07,360 Speaker 3: a set of investors and keep your valuation up. So, 276 00:16:07,800 --> 00:16:10,960 Speaker 3: from my perspective, what I get excited about is the 277 00:16:11,040 --> 00:16:15,240 Speaker 3: combination of being a production studio, a distribution platform, and 278 00:16:15,280 --> 00:16:18,520 Speaker 3: a brand means that I have three different key revenue 279 00:16:18,560 --> 00:16:21,200 Speaker 3: streams all growing up into the right. 280 00:16:21,440 --> 00:16:24,400 Speaker 1: I would imagine that creative people now reading about your 281 00:16:24,400 --> 00:16:27,720 Speaker 1: success and variety. I would imagine that John's phone is ringing, 282 00:16:27,760 --> 00:16:30,840 Speaker 1: that your team's phone is ringing. People are understanding and 283 00:16:30,880 --> 00:16:33,880 Speaker 1: coming to you with content. Are you seeing an uptick 284 00:16:33,920 --> 00:16:34,160 Speaker 1: in that? 285 00:16:35,400 --> 00:16:38,200 Speaker 3: We absolutely are, And I think it's a combination of 286 00:16:39,040 --> 00:16:43,200 Speaker 3: more stories being written now because we're starting to showcase 287 00:16:43,240 --> 00:16:47,000 Speaker 3: the demand and so you're seeing new stories and new 288 00:16:47,280 --> 00:16:51,560 Speaker 3: writers coming to the forefront. But I think also studios 289 00:16:51,880 --> 00:16:55,600 Speaker 3: and agents saying, wait a second, we have this amazing 290 00:16:55,680 --> 00:16:59,040 Speaker 3: script and there just hasn't been any production company or 291 00:16:59,160 --> 00:17:02,440 Speaker 3: studio that's been interested in this audience for the last 292 00:17:02,440 --> 00:17:04,439 Speaker 3: five or ten years. And so we're hearing from a 293 00:17:04,440 --> 00:17:06,440 Speaker 3: lot of agents in a lot of studios right now 294 00:17:06,440 --> 00:17:08,960 Speaker 3: to say we've got a project that we just didn't 295 00:17:08,960 --> 00:17:11,720 Speaker 3: know what to do with. But you understand this audience, 296 00:17:11,800 --> 00:17:14,320 Speaker 3: maybe you're the one to take it the length of 297 00:17:14,359 --> 00:17:14,800 Speaker 3: the field. 298 00:17:15,040 --> 00:17:18,440 Speaker 1: That's got to be extremely satisfying for John Irwin. John 299 00:17:18,520 --> 00:17:21,439 Speaker 1: is the director of Jesus Revolution and a house. David, 300 00:17:21,600 --> 00:17:23,240 Speaker 1: what's next up coming for John? 301 00:17:23,480 --> 00:17:27,200 Speaker 3: We are so excited about Young Washington. This is our 302 00:17:27,320 --> 00:17:30,760 Speaker 3: film about the early life of George Washington. It's actually 303 00:17:30,840 --> 00:17:34,160 Speaker 3: set in the seventeen fifties when George is about twenty 304 00:17:34,240 --> 00:17:37,600 Speaker 3: years old. All he wants in life is to be 305 00:17:37,840 --> 00:17:41,320 Speaker 3: kind of in the aristocracy of the British community in 306 00:17:41,359 --> 00:17:44,760 Speaker 3: the US. He is out scouting the Ohio territory in 307 00:17:44,880 --> 00:17:48,280 Speaker 3: hopes of being able to get a red jacket and 308 00:17:48,400 --> 00:17:49,960 Speaker 3: be part of the Royal Army. 309 00:17:49,960 --> 00:17:52,480 Speaker 2: And so it's a really wonderful story. 310 00:17:52,600 --> 00:17:55,359 Speaker 3: And one of the things I'm so excited about for 311 00:17:55,480 --> 00:18:01,400 Speaker 3: Young Washington is this idea that any of our young 312 00:18:01,480 --> 00:18:05,800 Speaker 3: people don't spend enough time learning and loving American history. 313 00:18:06,280 --> 00:18:09,560 Speaker 3: And I think when we bring stories like this one 314 00:18:09,920 --> 00:18:15,600 Speaker 3: to theaters that we are going to reignite curiosity and 315 00:18:15,720 --> 00:18:20,119 Speaker 3: excitement from those six through twelfth graders that say, like, 316 00:18:20,160 --> 00:18:22,600 Speaker 3: wait a second, they're not just powdered wigs sitting at 317 00:18:22,600 --> 00:18:23,080 Speaker 3: a table. 318 00:18:23,520 --> 00:18:26,040 Speaker 1: In the next twelve to twenty four months, are there 319 00:18:26,080 --> 00:18:30,080 Speaker 1: any big accelerants or any goals that you're really pushing toward. 320 00:18:30,080 --> 00:18:33,080 Speaker 3: John I said, as an entrepreneur, he is also a futurist, 321 00:18:33,560 --> 00:18:36,639 Speaker 3: and it is fun to be partners with a futurist. 322 00:18:36,680 --> 00:18:39,040 Speaker 3: What that means for us is that he has leaned 323 00:18:39,040 --> 00:18:43,040 Speaker 3: in heavily to try and understand what is happening, what 324 00:18:43,119 --> 00:18:46,800 Speaker 3: innovations and production are happening around AI right now, and 325 00:18:47,280 --> 00:18:50,200 Speaker 3: we are so excited about the things that we are 326 00:18:51,280 --> 00:18:54,879 Speaker 3: testing inside a house of David and Young Washington right now. 327 00:18:55,280 --> 00:18:59,919 Speaker 3: We are continuously learning how we use AI to amplify 328 00:19:00,119 --> 00:19:04,400 Speaker 3: to creativity, and that amplification of creativity is so exciting 329 00:19:04,440 --> 00:19:07,439 Speaker 3: because what we're doing is we're taking a process that 330 00:19:07,480 --> 00:19:13,520 Speaker 3: has historically been serialized pre production production post production one. 331 00:19:13,560 --> 00:19:17,440 Speaker 3: We're creating parallel paths for those and when you start 332 00:19:17,480 --> 00:19:20,719 Speaker 3: to move that into a parallel path, all of a sudden, 333 00:19:20,760 --> 00:19:24,920 Speaker 3: a director can start to see and influence what's happening 334 00:19:24,960 --> 00:19:27,919 Speaker 3: in post production while you're still on location, so that 335 00:19:28,000 --> 00:19:30,879 Speaker 3: you can start to really see, oh my gosh, what 336 00:19:31,000 --> 00:19:33,560 Speaker 3: I thought we were going to solve for in post 337 00:19:33,560 --> 00:19:36,560 Speaker 3: production through VFX is not going to work. But I 338 00:19:36,680 --> 00:19:39,040 Speaker 3: still have all my actors on the ground, so I 339 00:19:39,080 --> 00:19:42,159 Speaker 3: can actually reimagine that over the next few days instead 340 00:19:42,160 --> 00:19:45,000 Speaker 3: of having to do reshoots three months in the future. 341 00:19:45,320 --> 00:19:48,359 Speaker 3: And there's something really powerful about that for a director 342 00:19:48,680 --> 00:19:51,720 Speaker 3: and for actors to really start to understand how does 343 00:19:51,760 --> 00:19:54,840 Speaker 3: it all come together while they're still together in production 344 00:19:55,080 --> 00:19:55,600 Speaker 3: on the set. 345 00:19:56,640 --> 00:19:59,840 Speaker 1: I was about to ask you how AI is integrating 346 00:19:59,840 --> 00:20:02,720 Speaker 1: in to your workflow, especially as a startup studio. That 347 00:20:02,880 --> 00:20:06,040 Speaker 1: was a pretty great explanation, Kelly. Thank I get for 348 00:20:06,080 --> 00:20:09,439 Speaker 1: your time and for talking me through the growth of 349 00:20:09,520 --> 00:20:12,640 Speaker 1: this interesting company. At a time when there's so much 350 00:20:12,680 --> 00:20:17,240 Speaker 1: focus on consolidation and bigness and scale. Example, green shoots 351 00:20:17,280 --> 00:20:21,920 Speaker 1: that show a vibrant independent sector are more important than ever, 352 00:20:21,960 --> 00:20:24,560 Speaker 1: and Wonder Project is one of the tallest of those 353 00:20:24,600 --> 00:20:25,360 Speaker 1: green shoots. 354 00:20:26,320 --> 00:20:28,200 Speaker 2: Thank you so much, I appreciate it. 355 00:20:28,440 --> 00:20:31,280 Speaker 1: Thanks for listening. Be sure to leave us a review 356 00:20:31,280 --> 00:20:35,399 Speaker 1: at Apple Podcasts, Spotify or Amazon Music. We love to 357 00:20:35,440 --> 00:20:38,439 Speaker 1: hear from listeners. Please go to Variety dot com and 358 00:20:38,520 --> 00:20:41,960 Speaker 1: sign up for the free weekly Strictly Business newsletter, and 359 00:20:42,080 --> 00:20:45,080 Speaker 1: don't forget to tune in next week for another episode 360 00:20:45,080 --> 00:20:46,040 Speaker 1: of Strictly Business.