WEBVTT - Netflix's Greg Peters Talks Video Games and the Future of Streaming 0:00:02.520 --> 0:00:08.560 Bloomberg Audio Studios, podcasts, radio news. I want to start 0:00:08.800 --> 0:00:12.280 everyone acts like Netflix has won everything, right, I get 0:00:12.280 --> 0:00:14.880 a lot of people don't. People, even people a Netflix, 0:00:14.880 --> 0:00:16.720 don't like it when you say that Netflix has won 0:00:16.800 --> 0:00:19.479 the streaming wars. They think it's the wrong But I 0:00:19.520 --> 0:00:21.480 want to so I want to start with something. Let's 0:00:21.560 --> 0:00:22.800 let's go negative. 0:00:23.200 --> 0:00:26.640 All right, well it is you're speaking to my personality here. 0:00:26.840 --> 0:00:29.360 What is something that Netflix needs to do better? 0:00:30.400 --> 0:00:31.480 We need to do everything better. 0:00:31.520 --> 0:00:32.920 And I think you know the reason I hate, like, 0:00:33.280 --> 0:00:35.280 you know, when I hear we've won everything or whatever. 0:00:35.720 --> 0:00:37.560 I actually I think the worst position for a company 0:00:37.560 --> 0:00:40.320 to be in is to feel like they've actually won everything, 0:00:40.400 --> 0:00:45.040 because I think success has this, uh, you know, vulnerability 0:00:45.080 --> 0:00:48.760 where you start to breed, you know, complacency, error against 0:00:48.800 --> 0:00:50.320 and things like that. And I think in the world 0:00:50.320 --> 0:00:53.080 that we live in entertainment, this has been the most 0:00:53.080 --> 0:00:56.240 competitive entertainment environment that's ever existed in the planet, you know, 0:00:56.280 --> 0:00:59.200 in the history of humankind. It's getting more and more competitive, 0:00:59.320 --> 0:01:02.640 and if you don't maintain the sense that you are 0:01:02.680 --> 0:01:06.080 constantly vulnerable, I think you will lose. 0:01:06.440 --> 0:01:08.640 So I think the biggest thing that people point to 0:01:08.720 --> 0:01:10.760 as perhaps a side of vulnerability at least that I 0:01:10.840 --> 0:01:13.640 noticed is that your engagement, the amount of time people 0:01:13.680 --> 0:01:16.960 spend on the service has been pretty flat over the 0:01:17.040 --> 0:01:19.400 last couple of years. And then you look at the 0:01:19.760 --> 0:01:22.440 regular drops from Meelsen and you see that streaming share 0:01:22.440 --> 0:01:24.840 of TV time has gone up quite a bit, and 0:01:24.880 --> 0:01:27.120 your share that's gone up is a pretty small fraction 0:01:27.160 --> 0:01:28.480 of that. A lot of the growth has gone to 0:01:28.520 --> 0:01:32.319 these free services. So how do you address that? 0:01:32.840 --> 0:01:35.720 Well, I think you just essentially explained it right, which 0:01:35.800 --> 0:01:38.560 is that we moved on demand very early on in 0:01:38.600 --> 0:01:40.800 the process, so we sort of got the benefit or 0:01:40.840 --> 0:01:43.880 basically built our business around that benefit. And then you know, 0:01:43.920 --> 0:01:47.240 everyone over a period of time caught up and essentially 0:01:47.400 --> 0:01:51.600 from our perspective, they're all now moving to that model 0:01:51.680 --> 0:01:55.120 and moving to that benefit from consumers. So you know, frankly, 0:01:55.160 --> 0:01:57.280 the fact that we were actually keeping pace in that 0:01:57.400 --> 0:01:59.280 sort of you know, shifting tide if you will. I think, 0:01:59.320 --> 0:02:02.040 as you know, reasonably good thing. It's not great, you know. 0:02:02.120 --> 0:02:05.919 I mean good thing, but from everything I've heard inside 0:02:05.960 --> 0:02:08.600 the company, like the goal is basically to replace television, 0:02:08.680 --> 0:02:11.040 right like have Netflix be the ones or if you 0:02:11.040 --> 0:02:14.240 can watch basically anything on television on Netflix except for 0:02:14.320 --> 0:02:16.720 news and until recently sports. 0:02:17.160 --> 0:02:19.760 Well, I think, you know, expressing that as an ambition 0:02:20.160 --> 0:02:22.600 and also that is a way to organize how the 0:02:22.639 --> 0:02:24.520 company thinks about what we're trying to go do is great. 0:02:24.560 --> 0:02:26.959 I also think that that's not consistent with saying that 0:02:27.000 --> 0:02:28.560 we thought it was realistic that we were going to 0:02:28.600 --> 0:02:30.520 be the only thing that people were going to watch, right, 0:02:30.560 --> 0:02:33.000 because I also don't think that that's realistic at the 0:02:33.080 --> 0:02:34.920 end of the day. So I think there's always going 0:02:34.960 --> 0:02:37.000 to be like multiple sources of entertainment, even in the 0:02:37.040 --> 0:02:38.880 categories that we serve. We want to be you know, 0:02:39.000 --> 0:02:40.400 we want to win as more much of that as 0:02:40.440 --> 0:02:42.280 we possibly can. So I'm not you know, the don't 0:02:42.280 --> 0:02:44.960 back to being complacent. I'm not happy with the fact, 0:02:45.000 --> 0:02:46.799 you know that we're not growing engagement. We should grow 0:02:46.840 --> 0:02:48.720 more engagement. I think we will. I expect you'll see 0:02:48.760 --> 0:02:51.560 engagement numbers will go up for us. But also I 0:02:51.560 --> 0:02:53.320 don't think that I don't think there's a world in 0:02:53.360 --> 0:02:55.320 which we be the only thing that people watch. 0:02:56.560 --> 0:02:58.919 A big project I assumed to help grow engagement was 0:02:58.960 --> 0:03:01.399 the new you Use or interface UI that you rolled 0:03:01.400 --> 0:03:02.560 out over the last year plus. 0:03:02.720 --> 0:03:02.919 Yep. 0:03:03.440 --> 0:03:05.440 Can you point to some key ways in which that 0:03:05.760 --> 0:03:07.960 has already helped or you think it will help. 0:03:08.400 --> 0:03:11.600 Well, I would say a lot of what we've been 0:03:11.600 --> 0:03:15.360 doing is essentially re architecting the entire stack. This is 0:03:15.400 --> 0:03:17.880 from sort of how algorithms get calculated. We used to 0:03:17.960 --> 0:03:21.359 calculate overnight everyone's recommendations. When they show up in the morning, 0:03:21.360 --> 0:03:23.720 we would have that baked. Now we do it dynamically 0:03:23.800 --> 0:03:26.240 on the fly, and now we've created a UI where 0:03:26.320 --> 0:03:30.240 essentially you can you know, connect those those algorithm pipes 0:03:30.240 --> 0:03:31.960 in and also launch new modules. 0:03:32.760 --> 0:03:36.440 Can you use words that I'm not even going to 0:03:36.520 --> 0:03:38.480 insult the audience here that I will understand. 0:03:38.720 --> 0:03:39.640 Yeah, so thank you. 0:03:41.120 --> 0:03:44.720 Basically, what happens now is that when we think about. 0:03:44.480 --> 0:03:46.600 What titles do you want to watch? Right? 0:03:47.240 --> 0:03:50.600 We used to do that overnight and you'd show up 0:03:50.640 --> 0:03:52.480 and we'd give you those titles, right. But now the 0:03:52.480 --> 0:03:55.280 way that we do it essentially is as you're navigating 0:03:55.280 --> 0:03:57.880 the UI, we think about, oh, what are signals that 0:03:57.920 --> 0:03:58.400 you're giving. 0:03:58.520 --> 0:04:01.040 I skipped over this thing really quick. I'm not interested 0:04:01.080 --> 0:04:01.680 in that, right. 0:04:01.720 --> 0:04:04.000 Right, that's right. So I think that's something that's going 0:04:04.040 --> 0:04:04.520 to take us. 0:04:04.600 --> 0:04:07.080 I think a while to really build the fullness of 0:04:07.120 --> 0:04:09.440 how that delivers, you know, benefit for our users. But 0:04:09.480 --> 0:04:11.200 the thing that I can point to right now that 0:04:11.240 --> 0:04:13.640 the new UI structure is just designed to go do 0:04:13.680 --> 0:04:16.760 and is doing for us, is serving new content needs 0:04:16.760 --> 0:04:18.799 as we expand beyond just film and series. 0:04:18.839 --> 0:04:20.240 We spanned a live events and. 0:04:20.160 --> 0:04:22.640 The UI has to do a different job, which is like, 0:04:22.680 --> 0:04:24.200 why do you want to show up at Thursday at 0:04:24.240 --> 0:04:26.839 seven pm? Because oh you're going to watch a you know, 0:04:26.880 --> 0:04:28.960 a boxing match that you know you would not otherwise 0:04:29.040 --> 0:04:30.760 get to see, Or why do you want to play 0:04:30.800 --> 0:04:33.000 a game or those kind of things. That's that's what 0:04:33.000 --> 0:04:34.520 it's That's what it's doing for us right now. 0:04:34.640 --> 0:04:41.400 Right when it comes to to live that was something 0:04:41.440 --> 0:04:44.280 that you sort of famously said you weren't going to 0:04:44.360 --> 0:04:46.280 do sports for a while. And I know it's not 0:04:46.360 --> 0:04:48.080 just sports, you also do other live events, but the 0:04:48.080 --> 0:04:50.280 sports have been the biggest. Right Your NFL game was 0:04:50.320 --> 0:04:54.680 really big. Boxing match was huge, or both boxing matches, 0:04:54.880 --> 0:04:58.520 the logan or the the Jake Paul one will decide 0:04:58.520 --> 0:05:00.000 if it's really a boxing match. 0:05:00.120 --> 0:05:06.080 Sure, very good offer you. Well, I'll refrain, how much more. 0:05:05.960 --> 0:05:08.040 Are you going to invest in live events over the 0:05:08.080 --> 0:05:10.440 next few years and are there things that you know 0:05:10.560 --> 0:05:12.440 that you want to add to the service that you 0:05:12.480 --> 0:05:13.440 don't have right now. 0:05:14.720 --> 0:05:17.839 So it's a start with you know live, we think 0:05:17.880 --> 0:05:20.400 of as an important additional form of entertainment that we 0:05:20.400 --> 0:05:23.000 can deliver members. It's sort of a different style of 0:05:23.160 --> 0:05:27.120 entertainment you know where. Actually it's interesting because in contrast 0:05:27.160 --> 0:05:29.520 to our on demand service, which has tremendous benefit because 0:05:29.520 --> 0:05:31.400 you control the entertainment when you want to watch it, 0:05:31.640 --> 0:05:34.120 the big benefit alive is that we're all experiencing the 0:05:34.120 --> 0:05:36.360 same thing at the same time, and that has tremendous 0:05:36.440 --> 0:05:40.440 sort of social and conversational relevance. Right, So we want 0:05:40.440 --> 0:05:44.400 to do more of it. It represents a very small 0:05:44.440 --> 0:05:47.200 fraction of our total investment, It represents a small fraction 0:05:47.240 --> 0:05:49.120 of our total hours, but we think it also does 0:05:49.120 --> 0:05:50.359 a different job, so it sort of. 0:05:50.360 --> 0:05:52.920 Comes does it have a different impact, Like do you 0:05:53.000 --> 0:05:54.960 see because from the third party data I've seen, you 0:05:55.000 --> 0:05:58.080 tend to see huge surges and sign ups around some 0:05:58.200 --> 0:05:59.440 of those bigger events. 0:05:59.680 --> 0:06:03.359 Yeah, I think we expected it will do the same 0:06:03.760 --> 0:06:08.400 work ultimately that our other content does, which basically is 0:06:08.400 --> 0:06:10.240 a reason to sign up and a reason to stay. 0:06:10.920 --> 0:06:12.719 That's you know, at the end of the day. 0:06:12.920 --> 0:06:14.880 Now, I think we back to your point about like 0:06:14.960 --> 0:06:16.359 what do we know we want to get and stuff 0:06:16.360 --> 0:06:18.279 like that. We're still really learning in the space, so 0:06:18.279 --> 0:06:20.040 we're really trying to figure out, like, okay, what, how 0:06:20.120 --> 0:06:21.960 is this delivering value to members? How is this delivering 0:06:22.000 --> 0:06:24.799 value to the business. And there's definitely a different phenomena 0:06:24.839 --> 0:06:26.680 where these are punctuated. 0:06:26.120 --> 0:06:27.880 Moments to your point, right, which you. 0:06:27.880 --> 0:06:29.360 Know, people go like, Okay, if I'm maybe on the 0:06:29.480 --> 0:06:31.479 edge of signing up for Netflix, this might be the 0:06:31.480 --> 0:06:34.040 thing that pushes me over, you know, to actually do that. 0:06:34.120 --> 0:06:35.760 So I think we'll see different things for sure, but 0:06:35.960 --> 0:06:36.919 we really are learning. 0:06:36.760 --> 0:06:37.120 As we go. 0:06:37.560 --> 0:06:40.599 I want to throw one poll to the audience before 0:06:40.640 --> 0:06:44.120 we ask the next question, because they are related. If 0:06:44.120 --> 0:06:48.320 we get it up there, I will ask. So I 0:06:48.400 --> 0:06:50.240 just want to I promise Greg I would do this. 0:06:50.640 --> 0:06:54.000 Keep in mind how much these sports cost. Football is 0:06:54.040 --> 0:06:58.039 the most expensive, Tennis is the least expensive. Everything else 0:06:58.080 --> 0:06:58.400 sort of. 0:06:58.320 --> 0:06:59.240 Fits in between there. 0:06:59.279 --> 0:07:01.640 So even though Greg and I both like tennis, probably 0:07:01.640 --> 0:07:03.760 smallest audience but also least. 0:07:03.520 --> 0:07:08.520 Expensive international audience, what. 0:07:08.440 --> 0:07:11.080 Would you say the odds that you make a bid 0:07:11.080 --> 0:07:13.200 for one of the football packages when the NFL ops 0:07:13.200 --> 0:07:15.560 out of its current deal in twenty nine, or. 0:07:15.520 --> 0:07:18.160 Doesn't it you know, it doesn't really fit with our 0:07:18.160 --> 0:07:20.560 strategy as we understand it right now. So again back 0:07:20.560 --> 0:07:22.440 to your point, we think about what we're doing as 0:07:22.440 --> 0:07:25.920 an event's strategy, and it turns out, as you said, 0:07:26.320 --> 0:07:28.679 sports are big events, right, and so we can plug 0:07:28.720 --> 0:07:30.400 those into that strategy. But we also want to make 0:07:30.400 --> 0:07:32.840 sure that we're being really really disciplined about you know, 0:07:32.960 --> 0:07:35.560 are we buying, are we investing in ways that are 0:07:35.600 --> 0:07:39.240 profitable for the business and some of the big league 0:07:39.280 --> 0:07:39.960 sports things. 0:07:40.000 --> 0:07:42.239 We don't actually have a way to figure out that math. 0:07:43.800 --> 0:07:47.240 So okay, all right, although it doesn't I mean, isn't 0:07:47.240 --> 0:07:49.440 the sort of the magic of football. I get that 0:07:49.520 --> 0:07:51.760 the NFL is maybe tricky for you, and that it's 0:07:51.800 --> 0:07:54.679 not global and how expensive it is. But the reason 0:07:54.680 --> 0:07:57.080 it's so successful it's the one sport where like every 0:07:57.080 --> 0:07:58.520 Sunday sort of is an event. 0:07:59.040 --> 0:08:01.720 It's amazing regard, right, But I think to some degree 0:08:02.160 --> 0:08:05.400 that lack of substitutability is of course what gives the 0:08:05.480 --> 0:08:06.680 rights holders the leverage. 0:08:06.720 --> 0:08:09.720 And it's done a pretty good job at Yeah, I 0:08:09.760 --> 0:08:10.840 know you have. 0:08:11.240 --> 0:08:13.040 I can tell that you guys have this vision of 0:08:13.080 --> 0:08:15.679 where like you have more leverage than the sports leagues 0:08:15.720 --> 0:08:18.720 that are negotiation and that has basically never happened in media. 0:08:18.800 --> 0:08:22.040 That's right, until it happens, I would say you should 0:08:22.040 --> 0:08:23.320 have some skepticism about that. 0:08:23.720 --> 0:08:24.040 Okay. 0:08:25.760 --> 0:08:29.320 One other thing that you guys have basically never done 0:08:29.440 --> 0:08:31.960 is large scale em a day. But the bigger you get, 0:08:32.000 --> 0:08:34.520 the more you tend to get tied to different companies, 0:08:34.559 --> 0:08:37.839 different deals. There's been some reports around you guys being 0:08:37.840 --> 0:08:40.200 interested in Warner Brothers Discovery. Is there any truth to that? 0:08:40.840 --> 0:08:42.360 I would say this, you know, we come from a 0:08:42.640 --> 0:08:46.360 deep perriage of being builders rather than buyers. I also 0:08:46.400 --> 0:08:50.400 think that it's you know, one should have a reasonal 0:08:50.400 --> 0:08:52.120 amount of skepticism. 0:08:51.480 --> 0:08:53.600 Around big media mergers. 0:08:53.640 --> 0:08:55.960 They don't have an amazing track record over you know, 0:08:56.160 --> 0:09:00.280 the history of time, so you know, I would say 0:09:00.320 --> 0:09:02.800 it's our also, it's our responsibility to evaluate all our 0:09:02.840 --> 0:09:03.320 options and. 0:09:03.320 --> 0:09:06.520 Try so you'll look, you'll have a conversation, but the 0:09:06.559 --> 0:09:08.199 odds of an offer are pretty low. 0:09:08.320 --> 0:09:08.520 Yeah. 0:09:08.520 --> 0:09:10.200 Our job is to figure out, like what's the best 0:09:10.200 --> 0:09:12.120 way to grow our business? Right, and we have to 0:09:12.160 --> 0:09:15.040 think you know, really carefully, like how do we invest 0:09:15.400 --> 0:09:17.920 our capital, our time, and our attention and if that's 0:09:17.960 --> 0:09:19.760 the best way to do it, great, and if it's not, 0:09:19.800 --> 0:09:20.720 then we should do something else. 0:09:22.200 --> 0:09:24.240 What area you're investing a lot of capital right now? 0:09:24.320 --> 0:09:26.240 Or you might quibble with a lot, but it is 0:09:26.320 --> 0:09:29.360 gaming small fraction of our total investment. But yeah, I 0:09:29.400 --> 0:09:32.560 appreciate you saying that you've been offering video games for 0:09:32.600 --> 0:09:35.400 four years? What would you what grade would little over three? 0:09:35.440 --> 0:09:39.560 Little over three? Sorry? What grade would you give your 0:09:39.600 --> 0:09:40.600 gaming efforts so far? 0:09:42.040 --> 0:09:43.400 I'll give us a B minus? How's that? 0:09:43.640 --> 0:09:43.960 Okay? 0:09:44.440 --> 0:09:44.640 Yeah? 0:09:44.920 --> 0:09:46.800 I would say, look, you want maybe just to start 0:09:46.800 --> 0:09:49.720 where we're at right one. You know, it's a big 0:09:49.760 --> 0:09:51.920 market you one hundred and forty billion dollars X China 0:09:52.080 --> 0:09:55.160 X Russia. That doesn't that's just consumer spend that has 0:09:55.160 --> 0:09:57.720 include ads. So we think it's a real opportunity for 0:09:57.800 --> 0:10:00.240 us to try and earn a percentage of that over 0:10:00.240 --> 0:10:01.960 a period of time. A lot of what we've been 0:10:01.960 --> 0:10:05.000 doing is really just building the foundation, right We've been 0:10:05.040 --> 0:10:07.240 doing a lot of like you know, real hard plumbing work. 0:10:07.280 --> 0:10:09.680 But now we're getting to a really interesting place where 0:10:11.160 --> 0:10:13.800 you know, we're going to deliver more of what our 0:10:13.920 --> 0:10:14.719 vision of what we. 0:10:14.679 --> 0:10:16.080 Should be doing in the space is. 0:10:16.120 --> 0:10:18.720 And we call it games because that's a you know, 0:10:18.760 --> 0:10:21.040 a rubric or you know, a name that we all 0:10:21.120 --> 0:10:22.720 can relate to. But really I would look at this 0:10:22.760 --> 0:10:26.960 as how do we add more interactive capability? So that 0:10:27.120 --> 0:10:29.280 means even things like taking our live program back to 0:10:29.280 --> 0:10:31.240 the live program and how to add interactivity with live. 0:10:31.280 --> 0:10:33.559 So we've got voting right now that we're in testing 0:10:33.600 --> 0:10:36.120 on with David Chang and his live clicking show. You'll 0:10:36.120 --> 0:10:38.720 see that interact those interactive features come up with star Search, 0:10:38.880 --> 0:10:40.640 we do a lot another live event and non sports 0:10:40.640 --> 0:10:41.679 live event of star Search. 0:10:41.880 --> 0:10:44.720 So that's an exciting place to be. And then it 0:10:44.720 --> 0:10:45.520 gets also. 0:10:46.760 --> 0:10:48.079 Yeah, so you can see this is sort of how 0:10:48.200 --> 0:10:50.520 the Dave Chang experience is working. And you know, again 0:10:50.840 --> 0:10:52.400 this is you know, the tip of the iceberg, and 0:10:52.400 --> 0:10:55.920 we'll get deeper into this as we go. We're also 0:10:56.000 --> 0:10:58.880 I think more clear around what are the gaming areas 0:10:58.920 --> 0:11:00.559 back to the true you know, the more or traditional 0:11:00.559 --> 0:11:02.720 gaming areas that we are operating in. You know, it's 0:11:02.760 --> 0:11:06.320 a lot of interactive games around our IP. So you 0:11:06.320 --> 0:11:08.319 think about what you did with skid squid game. I 0:11:08.360 --> 0:11:10.200 don't know if you saw Throng. Let's based on the 0:11:10.200 --> 0:11:13.400 Black Mirror universe, but it's worth checking out because if 0:11:13.400 --> 0:11:16.560 you're a Black Mirror fan, it's so in universe, it's 0:11:16.640 --> 0:11:18.680 and the fans of Black Mirror just loved it because 0:11:18.720 --> 0:11:20.800 it was like they were having a meta experience there too. 0:11:21.080 --> 0:11:23.199 But even like Happy Gilmore, we did a golf game 0:11:23.240 --> 0:11:26.600 with Happy at Gilmore that got a remarkable amount of consumption. 0:11:26.679 --> 0:11:28.800 So do most of the people who use Netflix know 0:11:28.920 --> 0:11:29.800 you offer games? 0:11:30.200 --> 0:11:33.040 I would say, And that's part of frankly, what's been 0:11:33.120 --> 0:11:36.320 hard about this, And I think it's it's hard for 0:11:36.400 --> 0:11:41.079 any brand that has a deep, you know, consumer sense 0:11:41.120 --> 0:11:42.640 of what are you doing for me? 0:11:42.920 --> 0:11:44.480 Right? And then you're like, well, I'm going to do 0:11:44.559 --> 0:11:46.360 this as well, and you have. 0:11:46.559 --> 0:11:49.320 It takes a while to really build up that sense 0:11:49.360 --> 0:11:52.359 of what's happening. But it's not it's not that dissimilar 0:11:52.480 --> 0:11:55.120 to let's say we launched, you know, in a new country, 0:11:55.160 --> 0:11:58.160 like you know, you went to Japan, right, So when 0:11:58.160 --> 0:12:01.480 we started in Japan, two percent of the Japanese population 0:12:01.520 --> 0:12:04.520 it ever heard of Netflix, So nobody knew what nobody 0:12:04.520 --> 0:12:06.280 would nobody eve knew our name much. 0:12:06.320 --> 0:12:07.800 Let's be able to tell you what we were doing. 0:12:07.840 --> 0:12:08.880 And we're doing pay TV. 0:12:08.760 --> 0:12:10.480 Service in a country that doesn't really have a great 0:12:10.480 --> 0:12:12.559 PayTV you know operation we're doing over the internet in 0:12:12.559 --> 0:12:14.719 a way, it was totally new, and so you've got 0:12:14.720 --> 0:12:17.640 to every day build a little bit of like what 0:12:17.679 --> 0:12:19.280 are we doing, who we are, what are we you know, 0:12:19.360 --> 0:12:21.280 how are we here to serve you? So that ten 0:12:21.320 --> 0:12:23.440 year journey, let's say, you know, just did the tenth 0:12:23.520 --> 0:12:26.439 universary in Japan. You know, tremendous progress over ten years, 0:12:26.480 --> 0:12:28.200 but it took us a long time. And I think 0:12:28.240 --> 0:12:31.199 you know, the gaming situation is not dissimilar to that. 0:12:31.720 --> 0:12:34.160 How much is it an impediment that for the most 0:12:34.160 --> 0:12:36.040 part now you can only play it on your on 0:12:36.080 --> 0:12:37.200 your phone. 0:12:37.600 --> 0:12:41.440 Well, I would say, you know, the phone is what's 0:12:41.440 --> 0:12:44.680 great about it is it's a well developed gaming ecosystem, 0:12:44.760 --> 0:12:48.040 right so you know, folks notifying games there. But it's 0:12:48.040 --> 0:12:52.240 also a highly competitive gaming ecosystem, so it's developed. This 0:12:52.360 --> 0:12:54.480 gives you both that upside and the downside. But what's 0:12:54.520 --> 0:12:57.720 exciting is that now we are moving beyond the phone 0:12:57.960 --> 0:12:59.880 to the TV. So I mentioned like one of the 0:13:00.120 --> 0:13:01.720 gaming areas we're going after. One of the big gaming 0:13:01.760 --> 0:13:06.080 areas we're going after now is you know, social gaming experiences. 0:13:06.120 --> 0:13:07.439 It will show up on your TV. 0:13:07.679 --> 0:13:11.160 So we are now announcing we're announced here actually that 0:13:11.160 --> 0:13:13.120 we're going to have these social party games, a pack 0:13:13.160 --> 0:13:15.640 of social party games that you can play on your 0:13:15.640 --> 0:13:18.680 TV with your phone as the controller. And it's things 0:13:18.720 --> 0:13:21.599 like you know, recognizable games like Boggle. You got Pictionary, 0:13:21.640 --> 0:13:25.000 We've got a Lego party game, We've got Tetris, We've 0:13:25.000 --> 0:13:28.199 got like a Mafia style Who've done it? This is 0:13:28.280 --> 0:13:32.319 This is me and our CTO Elizabeth playing Boggle here, 0:13:32.360 --> 0:13:36.520 which is it's we're two very competitive people, so it 0:13:36.840 --> 0:13:38.160 got it got pretty ugly. 0:13:38.320 --> 0:13:41.679 Who I'm not going to say that means he lost. 0:13:42.640 --> 0:13:44.839 Oh does it when she watched a video my friend, 0:13:46.320 --> 0:13:50.600 you triggered my competitors. But this is again, this is 0:13:50.640 --> 0:13:53.000 you know, so it's your phone, which is an incredible device, 0:13:53.040 --> 0:13:54.360 and there's all sorts of things you're going to be 0:13:54.360 --> 0:13:56.760 able to do on your phone that you. 0:13:56.720 --> 0:13:59.160 Can't do on a normal controller, like touch screen. 0:13:59.200 --> 0:14:02.400 And this is USA basically picking our words on that, 0:14:02.640 --> 0:14:06.040 and it's you know, it's dead simple to use, it's intuitive. 0:14:06.280 --> 0:14:09.480 And then this is you know, us on the earliest 0:14:09.559 --> 0:14:11.719 days of how we actually can use that and if 0:14:11.720 --> 0:14:13.960 we you know, basically are going to like unleash this 0:14:14.000 --> 0:14:15.640 with a bunch of creators and they're going to go 0:14:15.679 --> 0:14:18.840 figure out stuff that we didn't even imagine that they 0:14:18.880 --> 0:14:21.000 can do with that interactivity. 0:14:20.480 --> 0:14:24.760 Got so you made to comment earlier about how it's 0:14:24.800 --> 0:14:29.960 never been more competitive in media. How worried are you 0:14:30.040 --> 0:14:32.600 about competition from the second richest person in the world. 0:14:34.720 --> 0:14:37.880 Well, I guess I'm not sure that that's exactly who's 0:14:37.880 --> 0:14:41.560 competing with us, And that's maybe a good question. Well, look, 0:14:41.600 --> 0:14:44.400 I mean start with like, it's fun to have some 0:14:44.520 --> 0:14:48.040 new vigor in the competitive ecosystem and the dynamic there. 0:14:48.040 --> 0:14:48.920 I think it's exciting. 0:14:49.440 --> 0:14:51.280 It sort of you know, keeps everybody on their toes 0:14:51.280 --> 0:14:52.880 and we're trying to figure out everyone like sort of 0:14:52.880 --> 0:14:53.400 figure ouare what. 0:14:53.360 --> 0:14:54.320 Does that mean and what does it do? 0:14:54.880 --> 0:14:57.640 I also think you have to go back to like 0:14:58.000 --> 0:15:00.800 doesn't change the business fundamentals, right, you know, you still 0:15:00.840 --> 0:15:02.400 have a bunch of problems to go solve and a 0:15:02.480 --> 0:15:03.440 business to grow, and so we'll. 0:15:03.320 --> 0:15:03.920 See what happens. 0:15:04.440 --> 0:15:07.480 So you bid against them for UFC, they come way 0:15:07.520 --> 0:15:09.520 over the top, that doesn't worry, that doesn't send the 0:15:09.520 --> 0:15:12.440 signal that maybe they'll be able to spend somewhat irrationally for. 0:15:13.280 --> 0:15:16.480 Loucause we are constantly dealing with situation where our competitors 0:15:16.480 --> 0:15:18.360 outbid us. And what I try and remember our team 0:15:18.400 --> 0:15:19.720 is we should bid up to the point where we 0:15:19.720 --> 0:15:21.840 think it's going to deliver value back to business. And 0:15:21.840 --> 0:15:24.840 if somebody outbids us, I say you should applaud and 0:15:24.880 --> 0:15:27.680 say go with God and try and monetize the heck 0:15:27.680 --> 0:15:28.040 out of that. 0:15:30.560 --> 0:15:33.080 Is it fair to say that YouTube is the stiffest 0:15:33.120 --> 0:15:35.680 competition or at least for attention. 0:15:35.480 --> 0:15:38.440 Sorry saying YouTube? Oh, YouTube, Yeah, for sure, they're a competitor, 0:15:38.440 --> 0:15:38.680 of course. 0:15:38.720 --> 0:15:40.560 Yeah, would you say that the toughest for you? 0:15:41.440 --> 0:15:44.120 I mean, they're a formidable competitor, for sure. 0:15:44.200 --> 0:15:45.920 I mean, and I think because of some degree they 0:15:45.920 --> 0:15:48.800 compete in a different access you know. I think it's 0:15:48.840 --> 0:15:50.880 you know, our thought on competition is always the hardest 0:15:50.880 --> 0:15:53.000 competition to deal with because they you know, it's hard 0:15:53.040 --> 0:15:55.440 to measure how you're doing things. They have angles against 0:15:55.480 --> 0:15:57.360 you that you might not you know, be familiar with. 0:15:57.440 --> 0:16:00.320 And so I think we're developing an understand ending of 0:16:00.360 --> 0:16:03.520 like what's our place in the ecosystem relative to them 0:16:03.920 --> 0:16:06.920 that we basically shore that up. We want to be 0:16:06.960 --> 0:16:08.560 the place where we invest ahead with. 0:16:09.160 --> 0:16:10.840 What is that like. Do you look at that and 0:16:10.880 --> 0:16:13.120 say we need to do UGC? Do you look at 0:16:13.160 --> 0:16:15.360 that and say we should skim off their biggest talent. 0:16:15.480 --> 0:16:18.240 I think the dumbest move would be to try and 0:16:18.280 --> 0:16:20.400 match them in every way, because I think you have 0:16:20.440 --> 0:16:22.600 to really know what lane you're operating in and then 0:16:22.760 --> 0:16:24.920 you try and be excellent at that and then defend 0:16:24.920 --> 0:16:25.320 that lane. 0:16:25.320 --> 0:16:27.840 And so you know what do we do? We invest 0:16:27.920 --> 0:16:29.240 ahead with creators. 0:16:28.880 --> 0:16:30.440 So that they can tell their stories in really really 0:16:30.520 --> 0:16:33.000 compelling ways, in a way that the YouTube model doesn't 0:16:33.040 --> 0:16:35.480 really allow them to go do. So we want to 0:16:35.520 --> 0:16:36.880 work with the best creators in the planet. Some of 0:16:36.880 --> 0:16:38.480 those folks are going to come from YouTube, they're going 0:16:38.520 --> 0:16:40.200 to come from TikTok, They're going to come from traditional 0:16:40.240 --> 0:16:42.280 places all over the place. We want to be the 0:16:42.280 --> 0:16:44.600 place that they want to go when they're ready to 0:16:44.600 --> 0:16:46.720 tell that story at that level. And then our job 0:16:46.800 --> 0:16:48.680 is to find the biggest global audience for them and 0:16:48.720 --> 0:16:51.600