1 00:00:07,880 --> 00:00:11,680 Speaker 1: I wanted to just start out with a little introductory thought. 2 00:00:12,520 --> 00:00:15,840 Speaker 1: It was about fifty seven years ago when Bob Dylan 3 00:00:16,040 --> 00:00:20,720 Speaker 1: famously enraged folk music purists by going electric. What might 4 00:00:20,800 --> 00:00:23,360 Speaker 1: those people say today when they learned that he sold 5 00:00:23,440 --> 00:00:27,240 Speaker 1: his song catalog to a multinational conglomerate for nearly four 6 00:00:27,320 --> 00:00:30,680 Speaker 1: hundred million dollars. In the past few years, the value 7 00:00:30,720 --> 00:00:34,640 Speaker 1: of these assets has really soared to previously unimagined heights, 8 00:00:34,640 --> 00:00:38,880 Speaker 1: with publishing in particular seeing multiples well over twenty times 9 00:00:38,960 --> 00:00:41,919 Speaker 1: their current market value. You know, we should explain how 10 00:00:42,000 --> 00:00:45,280 Speaker 1: your company makes money, which, from what I could tell, 11 00:00:45,680 --> 00:00:51,279 Speaker 1: is a mix of sponsorships and commerce. Uh why at 12 00:00:51,360 --> 00:00:54,760 Speaker 1: this I guess early stages that not enough to be 13 00:00:54,840 --> 00:00:57,720 Speaker 1: self sustaining. It sounds like walking in the door you 14 00:00:57,760 --> 00:01:00,480 Speaker 1: saw I T. You saw the potential for I P, 15 00:01:01,080 --> 00:01:05,160 Speaker 1: which is the you know, seemingly the most valuable commodity 16 00:01:05,240 --> 00:01:07,560 Speaker 1: on earth. And it seems like right there, walking in 17 00:01:07,640 --> 00:01:09,960 Speaker 1: the door, you were marrying you. You know, you were 18 00:01:10,000 --> 00:01:13,800 Speaker 1: bringing together your experience and knowing how to have the 19 00:01:13,920 --> 00:01:19,720 Speaker 1: levers of media and television and entertainment work. Welcome to 20 00:01:19,800 --> 00:01:25,200 Speaker 1: strictly business varieties. Weekly podcasts featuring conversations with industry leaders 21 00:01:25,200 --> 00:01:29,040 Speaker 1: about the business of media and entertainment. I'm Cynthia Littleton, 22 00:01:29,520 --> 00:01:32,720 Speaker 1: co editor in chief of Variety. I'm one of three 23 00:01:32,840 --> 00:01:35,880 Speaker 1: rotating hosts of this podcast. I share it with my 24 00:01:35,959 --> 00:01:40,280 Speaker 1: longtime colleagues Andrew Wallenstein, President and Chief Media Analyst for 25 00:01:40,480 --> 00:01:46,360 Speaker 1: Variety Intelligence Platform, and Shirley Halprin Varieties Executive editor of Music. 26 00:01:46,840 --> 00:01:52,520 Speaker 1: This is our highlights reel. Having three of us share 27 00:01:52,560 --> 00:01:56,080 Speaker 1: hosting duties insures that we cover a lot of industry ground. 28 00:01:56,600 --> 00:01:59,640 Speaker 1: We keep it focused on conversations about the biz and 29 00:02:00,080 --> 00:02:04,960 Speaker 1: show biz, making money, spending money, building brands, pouncing on 30 00:02:05,120 --> 00:02:08,320 Speaker 1: M and A and rethinking old strategies. That's what we 31 00:02:08,400 --> 00:02:11,360 Speaker 1: love around here. We're not afraid to go deep or 32 00:02:11,400 --> 00:02:14,680 Speaker 1: go wonky. We get the best feedback sometimes when we 33 00:02:14,760 --> 00:02:19,200 Speaker 1: dive into intricate business issues. They're changing fast. We started 34 00:02:19,240 --> 00:02:24,079 Speaker 1: the year with Shirley's conversation with Splice founder and CEO 35 00:02:24,560 --> 00:02:29,120 Speaker 1: Steve Martosi in a conversation about how technology is helping 36 00:02:29,200 --> 00:02:32,440 Speaker 1: music creators. From there, we headed to the Heartland for 37 00:02:32,480 --> 00:02:36,040 Speaker 1: a conversation with Alison Page, head of TV for Chip 38 00:02:36,040 --> 00:02:39,600 Speaker 1: and Joanna Gaines's Magnolia Network, and then we moved onto 39 00:02:39,639 --> 00:02:43,000 Speaker 1: the highest ranking female executive in the video game industry, 40 00:02:43,560 --> 00:02:48,440 Speaker 1: Laura Maielli, Chief Operating Officer of Electronic Arts. We've had 41 00:02:48,520 --> 00:02:51,919 Speaker 1: CEOs from all over the map, including Mattel, wet To 42 00:02:52,120 --> 00:02:55,160 Speaker 1: FX and Wondering. We've had the leader of a startup 43 00:02:55,160 --> 00:02:58,960 Speaker 1: media company aimed at kids, Seema Zargami of Mimo Studios, 44 00:02:59,280 --> 00:03:01,360 Speaker 1: and we've had the ead of a startup aimed at 45 00:03:01,400 --> 00:03:06,480 Speaker 1: senior citizens, salt Box TV CEO Jerry Garring. We've had 46 00:03:06,520 --> 00:03:10,880 Speaker 1: a stream of business focused producers Peky Blinder's Karen Mandeback, 47 00:03:11,240 --> 00:03:16,239 Speaker 1: Michael Ellenberg from Apple's Pachinko, Charles Rovan of Sony Pictures, Unchartered, 48 00:03:16,760 --> 00:03:21,000 Speaker 1: William Shrrick, Jason blom Over at the mouse House. We've 49 00:03:21,080 --> 00:03:23,920 Speaker 1: checked in with the head of ESPN, Jimmy Petero, and 50 00:03:24,000 --> 00:03:26,880 Speaker 1: the former head of the now departed Disney Media and 51 00:03:27,000 --> 00:03:31,320 Speaker 1: Entertainment Distribution unit, Karem Daniel in the funny way the 52 00:03:31,360 --> 00:03:34,400 Speaker 1: world works. Within a few months, we had an interview 53 00:03:34,400 --> 00:03:38,200 Speaker 1: with Dan McDermott, the new content chief for AMC Networks, 54 00:03:38,640 --> 00:03:41,080 Speaker 1: and then we've spoke with the executive who had his 55 00:03:41,160 --> 00:03:44,640 Speaker 1: job a few years ago, David Madden. Who's now overseeing 56 00:03:44,680 --> 00:03:49,520 Speaker 1: content development for what Pad, web Tune Studios. One of 57 00:03:49,560 --> 00:03:52,240 Speaker 1: my favorite sitdowns this year was in the living room 58 00:03:52,320 --> 00:03:57,520 Speaker 1: of CNBC correspondent Julia Boston. Julia wrote this year's coolest 59 00:03:57,680 --> 00:04:01,839 Speaker 1: nonfiction business book, When Women Lead, We're Happy. She made 60 00:04:01,880 --> 00:04:05,280 Speaker 1: Strictly Business one of the first stops on her launch campaign. 61 00:04:05,640 --> 00:04:09,160 Speaker 1: It's been interesting, like looking at the data about leading 62 00:04:09,160 --> 00:04:13,640 Speaker 1: and managing in crisis. Women have amazing performance managing in crisis, 63 00:04:13,800 --> 00:04:17,320 Speaker 1: especially if you think about the financial crisis, managing through 64 00:04:17,360 --> 00:04:21,280 Speaker 1: the pandemic, And in some ways they're leading very differently 65 00:04:21,320 --> 00:04:25,320 Speaker 1: than male CEOs. But in other ways maybe male CEOs 66 00:04:25,640 --> 00:04:28,919 Speaker 1: are trying to or should try to emulate them, particularly 67 00:04:28,920 --> 00:04:31,560 Speaker 1: in times of crisis, when say things like empathy matter 68 00:04:31,760 --> 00:04:36,480 Speaker 1: matter more both employees and customers. So I think that, um, 69 00:04:36,560 --> 00:04:40,039 Speaker 1: the overwhelming thing that struck me in interviewing hundreds of 70 00:04:40,080 --> 00:04:43,000 Speaker 1: people and and reading all these academic studies is that 71 00:04:43,160 --> 00:04:45,240 Speaker 1: while we may have a couple of ideas of what 72 00:04:45,360 --> 00:04:48,360 Speaker 1: leadership looks like or what good leadership looks like, in fact, 73 00:04:48,360 --> 00:04:50,359 Speaker 1: there are many different skills that can be used for 74 00:04:50,400 --> 00:04:55,240 Speaker 1: good leadership, and the leaders who were most successful were 75 00:04:55,320 --> 00:04:58,239 Speaker 1: those who didn't try to force themselves into this box 76 00:04:58,839 --> 00:05:01,600 Speaker 1: or this stereotype, try to fit a model of what 77 00:05:01,720 --> 00:05:04,720 Speaker 1: leadership looked like in the seventies. But instead we're saying, 78 00:05:04,800 --> 00:05:07,080 Speaker 1: here's what I'm really good at, and here's how I 79 00:05:07,080 --> 00:05:09,320 Speaker 1: could hire people around me to fill in the things 80 00:05:09,320 --> 00:05:11,400 Speaker 1: that I know nothing about, and here's how I can 81 00:05:11,480 --> 00:05:16,800 Speaker 1: lean into the things that I'm really good at. Don't 82 00:05:16,839 --> 00:05:20,680 Speaker 1: go anywhere. We'll be back with more annotated highlights of 83 00:05:20,680 --> 00:05:30,960 Speaker 1: the year that was. This is Shirley Halpern, Executive editor 84 00:05:31,080 --> 00:05:34,960 Speaker 1: of Music at Variety. In early May, I represented strictly 85 00:05:35,000 --> 00:05:38,640 Speaker 1: business at the Milken Institute Global Conference in Beverly Hills, 86 00:05:38,839 --> 00:05:41,719 Speaker 1: where I lead a panel with top music industry players 87 00:05:41,800 --> 00:05:44,760 Speaker 1: on the rise of the hundreds of millions of dollars 88 00:05:44,800 --> 00:05:48,880 Speaker 1: of music catalog sales. I asked some tough questions about 89 00:05:48,880 --> 00:05:52,599 Speaker 1: whether these valuations are really sustainable. You'll hear some of 90 00:05:52,640 --> 00:05:58,320 Speaker 1: this conversation starting with Scott Pascucci, CEO of Concord Music. 91 00:05:58,800 --> 00:06:02,280 Speaker 1: He'll be followed by observations on dealmaking and what matters 92 00:06:02,360 --> 00:06:07,000 Speaker 1: to artists from Chari's clar Sores, founder and CEO of 93 00:06:07,080 --> 00:06:11,560 Speaker 1: Harbor View Equity Partners, and Harvey Mason Jr. CEO of 94 00:06:11,600 --> 00:06:14,880 Speaker 1: the Recording Academy, And plus it in your question is 95 00:06:14,920 --> 00:06:19,240 Speaker 1: the very current focus on catalogs and catalog acquisition. Right, 96 00:06:19,240 --> 00:06:22,640 Speaker 1: it's not just is music sexy, music is sexy, artist sexy. 97 00:06:22,720 --> 00:06:26,400 Speaker 1: But what is new is the focus of Wall Street 98 00:06:26,600 --> 00:06:30,680 Speaker 1: on buying catalogs, valuing them, talking about it. And I 99 00:06:30,720 --> 00:06:33,600 Speaker 1: think what gets lost in the last couple of years 100 00:06:33,640 --> 00:06:38,920 Speaker 1: of frenetic activity is that for the companies in the 101 00:06:39,000 --> 00:06:43,520 Speaker 1: music industry, we have been buying and building catalogs for decades. 102 00:06:43,760 --> 00:06:47,599 Speaker 1: So it's really Wall Streets focus on the on the 103 00:06:47,640 --> 00:06:51,479 Speaker 1: business and the opportunity that's new. And on the one hand, 104 00:06:51,600 --> 00:06:54,000 Speaker 1: it's nice that Wall Street has taken the time to 105 00:06:54,120 --> 00:06:57,000 Speaker 1: learn our business and to figure out what the attractiveness 106 00:06:57,120 --> 00:07:01,039 Speaker 1: of our catalogs are because they are extra ordinary. But 107 00:07:01,160 --> 00:07:03,440 Speaker 1: at the same time, it has created a level of 108 00:07:03,480 --> 00:07:07,799 Speaker 1: frenetic frosthiness, which is I think also implicit in your question, 109 00:07:08,240 --> 00:07:11,560 Speaker 1: what are the motivations of the sellers, of the artists 110 00:07:11,640 --> 00:07:14,360 Speaker 1: and and of the buyers. Look, I think there's a 111 00:07:14,480 --> 00:07:19,040 Speaker 1: natural lifespan of these artists, and you know, they reach 112 00:07:19,080 --> 00:07:21,520 Speaker 1: a certain age where they want to make sure that 113 00:07:21,600 --> 00:07:25,080 Speaker 1: their legacy is being preserved in the proper way, and 114 00:07:25,120 --> 00:07:29,320 Speaker 1: that they can do a transaction where they know that 115 00:07:29,520 --> 00:07:32,240 Speaker 1: well after they're here, these songs are going to be 116 00:07:32,320 --> 00:07:34,240 Speaker 1: treated in the way that they would want them to 117 00:07:34,280 --> 00:07:36,320 Speaker 1: be treated if they were still around. And I think 118 00:07:36,360 --> 00:07:40,200 Speaker 1: finding the right partners very important. There's, you know, obviously 119 00:07:40,280 --> 00:07:44,559 Speaker 1: the financial reasons. There's great opportunities for people to sell 120 00:07:44,680 --> 00:07:47,720 Speaker 1: and enjoy the fruits of their labor late in life. 121 00:07:48,200 --> 00:07:52,080 Speaker 1: There's a state planning, there's tax treatments that are favorable. 122 00:07:52,120 --> 00:07:54,760 Speaker 1: I think all of those things backed are in I 123 00:07:54,800 --> 00:07:57,160 Speaker 1: think it depends on who the person is that's selling, 124 00:07:57,800 --> 00:08:01,120 Speaker 1: you know, particularly on the deals that we've done. What's 125 00:08:01,120 --> 00:08:04,200 Speaker 1: been great about it is that we felt like it's 126 00:08:04,280 --> 00:08:09,160 Speaker 1: not necessarily bidding more type situations. It's these people have 127 00:08:09,480 --> 00:08:14,320 Speaker 1: wanted to be with us, and we take that responsibility 128 00:08:14,440 --> 00:08:17,400 Speaker 1: very seriously. I think arching off what Mark said, as 129 00:08:17,520 --> 00:08:19,800 Speaker 1: everybody in the panel knows, there is a lot of 130 00:08:19,920 --> 00:08:24,920 Speaker 1: increased liquidity in music catalogs now right there are more buyers, 131 00:08:24,960 --> 00:08:28,520 Speaker 1: are more buying and selling, but they are not as 132 00:08:28,560 --> 00:08:32,120 Speaker 1: liquid as you know. If I die tomorrow, resolving my 133 00:08:32,280 --> 00:08:35,080 Speaker 1: estate is a fairly straightforward process. If you have an 134 00:08:35,160 --> 00:08:40,560 Speaker 1: enormous music catalog. When you pass, you are leaving your children, 135 00:08:40,679 --> 00:08:44,120 Speaker 1: your heir's a bundle of responsibilities that they may not 136 00:08:44,240 --> 00:08:47,560 Speaker 1: want and they may not be prepared for. And it's 137 00:08:47,640 --> 00:08:51,280 Speaker 1: not even if you have you know, counterparties like labels 138 00:08:51,280 --> 00:08:54,640 Speaker 1: and publishers who are doing the work. The five percent 139 00:08:54,679 --> 00:08:57,960 Speaker 1: of the work is a lot and requires experience, and 140 00:08:58,040 --> 00:09:02,280 Speaker 1: not every family wants that responsibility. So in a period 141 00:09:02,320 --> 00:09:05,200 Speaker 1: where multiples are high, I think that a lot of 142 00:09:05,280 --> 00:09:09,120 Speaker 1: artists like Dylan and others are looking at their legacy 143 00:09:09,160 --> 00:09:12,600 Speaker 1: and saying, my legacy is a creative legacy. My legacy 144 00:09:12,679 --> 00:09:16,720 Speaker 1: is also a financial legacy, and it's a business, and 145 00:09:16,720 --> 00:09:18,840 Speaker 1: it has a team of people that run that business. 146 00:09:18,960 --> 00:09:22,240 Speaker 1: And when we're not here anymore, who's going to run it? 147 00:09:22,520 --> 00:09:25,520 Speaker 1: Or does it make more sense for me to reduce 148 00:09:25,559 --> 00:09:29,400 Speaker 1: it to more fungible assets so that my heirs can 149 00:09:29,679 --> 00:09:33,120 Speaker 1: enjoy that without taking on the responsibility that I chose 150 00:09:33,160 --> 00:09:35,680 Speaker 1: to take on as an artist sixty years ago. There 151 00:09:35,800 --> 00:09:37,760 Speaker 1: is a lot of factors that go into how you 152 00:09:37,920 --> 00:09:42,880 Speaker 1: size a purchase price, inclusive of age, inclusive of you know, 153 00:09:43,000 --> 00:09:47,959 Speaker 1: quality of earning streams, inclusive of diversification. So there's a 154 00:09:48,000 --> 00:09:50,320 Speaker 1: lot of things that go into it, and sometimes you know, 155 00:09:50,440 --> 00:09:52,880 Speaker 1: especially in conversations like this, it's super easy because the 156 00:09:52,920 --> 00:09:55,680 Speaker 1: science is boring. I am a science geek. I grew 157 00:09:55,760 --> 00:09:57,880 Speaker 1: up in the financial markets, but I did play the 158 00:09:57,880 --> 00:10:01,560 Speaker 1: piano for fifteen years. But so the science is boring, 159 00:10:01,600 --> 00:10:04,320 Speaker 1: it takes too long to discuss. So that's why we're 160 00:10:04,320 --> 00:10:08,040 Speaker 1: all shorthanded and talk about right. But the truth of 161 00:10:08,080 --> 00:10:10,240 Speaker 1: the matter is there's a lot more that goes into it. 162 00:10:10,320 --> 00:10:14,400 Speaker 1: And sometimes what's unfortunate for sell our expectations is that 163 00:10:14,400 --> 00:10:16,360 Speaker 1: that's all they hear, and so they don't hear the 164 00:10:16,440 --> 00:10:19,360 Speaker 1: nuance that goes into the conversation. But that being said, 165 00:10:19,400 --> 00:10:24,360 Speaker 1: we really try to focus on having a very agnostic 166 00:10:24,480 --> 00:10:27,480 Speaker 1: view as it relates to genre, as it relates to 167 00:10:27,520 --> 00:10:29,480 Speaker 1: type of music that we're buying. We really try to 168 00:10:29,520 --> 00:10:34,360 Speaker 1: focus on looking using the science to drive decision making, 169 00:10:34,520 --> 00:10:36,760 Speaker 1: and I think what that's allowed us to do is 170 00:10:36,880 --> 00:10:41,080 Speaker 1: actually see things that other people don't necessarily see. Like 171 00:10:41,480 --> 00:10:44,280 Speaker 1: we sort of have this saying internally that the world 172 00:10:44,320 --> 00:10:46,920 Speaker 1: is round, it's not flat, which means it's not only 173 00:10:46,960 --> 00:10:48,560 Speaker 1: the things that you see in the four corners of 174 00:10:48,559 --> 00:10:50,880 Speaker 1: your universe, but it's really about the fact that there's 175 00:10:50,880 --> 00:10:53,720 Speaker 1: a whole global X experience and sometimes the music that 176 00:10:53,760 --> 00:10:55,360 Speaker 1: I love is not the music that you love, is 177 00:10:55,360 --> 00:10:57,360 Speaker 1: not the music that you love. But that's perfectly fine, 178 00:10:57,440 --> 00:10:59,920 Speaker 1: and that allows us to see and engage with creator 179 00:11:00,080 --> 00:11:02,480 Speaker 1: is that some people here may never have even heard of, 180 00:11:02,600 --> 00:11:05,040 Speaker 1: but also allows us to engage with all the names 181 00:11:05,040 --> 00:11:07,080 Speaker 1: that we've all heard of. So tying all that together 182 00:11:07,200 --> 00:11:09,920 Speaker 1: means that everything is not all the same. We put 183 00:11:10,000 --> 00:11:11,920 Speaker 1: all that together to come up with a point of 184 00:11:11,960 --> 00:11:13,559 Speaker 1: view and what we think is the right point of 185 00:11:13,600 --> 00:11:16,000 Speaker 1: view to pay for something, and we try to treat 186 00:11:16,040 --> 00:11:19,160 Speaker 1: it with the respect that it deserves. Let's talk about 187 00:11:19,240 --> 00:11:24,160 Speaker 1: the future of music and as a commodity n f 188 00:11:24,240 --> 00:11:28,240 Speaker 1: t S the metaverse web three. These are terms that 189 00:11:28,480 --> 00:11:32,319 Speaker 1: are being thrown around a lot these days. You've said this, 190 00:11:32,440 --> 00:11:34,440 Speaker 1: and I think it's kind of brilliant that we're in 191 00:11:34,480 --> 00:11:38,400 Speaker 1: the MySpace stage when it comes to music in the metaverse. 192 00:11:39,240 --> 00:11:41,080 Speaker 1: I think that's I think that's a hunder country. But 193 00:11:41,120 --> 00:11:44,120 Speaker 1: let me give credit where appropriate credits due. My dear 194 00:11:44,200 --> 00:11:46,360 Speaker 1: friend Morgan de Bruin, who started is the CEO and 195 00:11:46,400 --> 00:11:48,120 Speaker 1: founder of Gravity, is the one that told me that, 196 00:11:48,280 --> 00:11:52,400 Speaker 1: and I completely believe that we know that it's coming. 197 00:11:52,480 --> 00:11:55,520 Speaker 1: It's here, we're hearing it, we're feeling it, but we 198 00:11:55,559 --> 00:11:57,960 Speaker 1: don't know exactly what it's going to look like. So 199 00:11:58,000 --> 00:12:02,000 Speaker 1: we're still really early days on what the monetization model is. 200 00:12:02,040 --> 00:12:03,839 Speaker 1: How will we all engage? Are we all gonna walk 201 00:12:03,840 --> 00:12:05,840 Speaker 1: around with headsets on our heads for a long period time? 202 00:12:05,840 --> 00:12:07,800 Speaker 1: Are they're gonna go to work like that? Like these 203 00:12:07,800 --> 00:12:10,160 Speaker 1: are questions that we're all asking ourselves. Who's going to engage? 204 00:12:10,160 --> 00:12:13,000 Speaker 1: Is the communities? Is that communities around gaming? Is the 205 00:12:13,040 --> 00:12:16,000 Speaker 1: communities around children? So I think we're still very much 206 00:12:16,040 --> 00:12:20,000 Speaker 1: so learning what this new segment of technology is going 207 00:12:20,080 --> 00:12:22,160 Speaker 1: to do. But I do think it's coming. I do 208 00:12:22,280 --> 00:12:25,160 Speaker 1: believe that n f T S and or blockchain is 209 00:12:25,200 --> 00:12:29,080 Speaker 1: a really engage in interesting way for creators to be 210 00:12:29,240 --> 00:12:31,160 Speaker 1: have a better seat at the table. I don't know 211 00:12:31,200 --> 00:12:34,160 Speaker 1: if we have the exact again monetization model that we 212 00:12:34,240 --> 00:12:35,840 Speaker 1: all think is going to be the right way. But 213 00:12:35,920 --> 00:12:38,720 Speaker 1: for example, literally was just having this conversation with someone 214 00:12:38,760 --> 00:12:41,960 Speaker 1: earlier today where they were talking about how they've tried 215 00:12:42,040 --> 00:12:44,600 Speaker 1: to participate into in the nas n f T that 216 00:12:44,720 --> 00:12:47,080 Speaker 1: was offered, and it was like really exciting for them 217 00:12:47,120 --> 00:12:50,560 Speaker 1: as a fan to sponsor the content and to help 218 00:12:50,600 --> 00:12:52,959 Speaker 1: to promote the content in that way, even if they 219 00:12:53,200 --> 00:12:55,760 Speaker 1: never necessarily made back a hundred cents on the dollar 220 00:12:55,840 --> 00:12:57,559 Speaker 1: in terms of what they invested in from the n 221 00:12:57,600 --> 00:13:00,480 Speaker 1: f T. But that engagement in that crowds are seeing 222 00:13:00,679 --> 00:13:03,360 Speaker 1: from the community and in partnership with some of your 223 00:13:03,360 --> 00:13:05,920 Speaker 1: favorite artists, I think a really interesting one. So I 224 00:13:05,960 --> 00:13:08,200 Speaker 1: think we're still early days and how we'll see all 225 00:13:08,240 --> 00:13:10,840 Speaker 1: of this stuff come together, But I do think that 226 00:13:10,880 --> 00:13:13,040 Speaker 1: it's coming, and I think well to ignore it, I 227 00:13:13,040 --> 00:13:15,120 Speaker 1: think is one early days is a great way to 228 00:13:15,160 --> 00:13:17,560 Speaker 1: put it, and I do think it's going to continue 229 00:13:17,559 --> 00:13:20,200 Speaker 1: to grow. But I would say it's absolutely here. We're 230 00:13:20,200 --> 00:13:23,440 Speaker 1: seeing the desire for music. And we talked about earlier. 231 00:13:23,520 --> 00:13:27,240 Speaker 1: Music's omnipresent, it's everywhere, It's in all these platforms at 232 00:13:27,240 --> 00:13:30,160 Speaker 1: the Academy this year for the first year, and just 233 00:13:30,200 --> 00:13:32,120 Speaker 1: as a reminder, I've been the CEO for about eighteen 234 00:13:32,160 --> 00:13:34,280 Speaker 1: months under two years, and one of the first things 235 00:13:34,320 --> 00:13:36,560 Speaker 1: I did when I came and I said, how is 236 00:13:36,720 --> 00:13:39,520 Speaker 1: music going to be involved in all these new platforms 237 00:13:39,520 --> 00:13:41,920 Speaker 1: and formats and how can we make sure we're on 238 00:13:41,960 --> 00:13:43,800 Speaker 1: the cutting edge of that and make sure that we're 239 00:13:44,360 --> 00:13:47,000 Speaker 1: looking out for the music community, which is really our 240 00:13:47,000 --> 00:13:48,800 Speaker 1: our mission and our job and all of our creators 241 00:13:48,840 --> 00:13:52,400 Speaker 1: and members. At the mid year point, the markets were 242 00:13:52,400 --> 00:13:56,719 Speaker 1: looking brutal, especially for media and tech shares. S and 243 00:13:56,800 --> 00:14:01,560 Speaker 1: P Global Ratings Senior Director Navine Star spoke insightfully with 244 00:14:01,640 --> 00:14:06,080 Speaker 1: Andy about long term changes in the media sector at 245 00:14:06,080 --> 00:14:09,440 Speaker 1: that time, coming off the May meltdown of stocks and 246 00:14:09,480 --> 00:14:13,679 Speaker 1: the crypto market. Variety and Andy's v I P team 247 00:14:13,720 --> 00:14:17,560 Speaker 1: also collaborated on a special report on this muddy situation. 248 00:14:18,160 --> 00:14:21,040 Speaker 1: It's available still for free download. All you have to 249 00:14:21,080 --> 00:14:26,040 Speaker 1: do is google Variety and how to Survive a bear market. 250 00:14:26,440 --> 00:14:30,760 Speaker 1: You'll find it. Ultimately, when we think about consumer spending 251 00:14:30,760 --> 00:14:32,760 Speaker 1: and we think about the media sector, we're really thinking 252 00:14:32,760 --> 00:14:36,720 Speaker 1: about how the consumers feel about spending. Because consumer spending 253 00:14:36,720 --> 00:14:40,040 Speaker 1: represents two thirds of the US GDP UM. If consumers 254 00:14:40,080 --> 00:14:42,880 Speaker 1: feel stressed and stretch and they choose to cut back 255 00:14:42,880 --> 00:14:46,640 Speaker 1: on spending, that ultimately UM will impact the media and 256 00:14:46,720 --> 00:14:50,680 Speaker 1: entertainment sector, even if there isn't a recession UM. I 257 00:14:50,680 --> 00:14:52,240 Speaker 1: think one of the things that we have to consider 258 00:14:52,520 --> 00:14:57,200 Speaker 1: is is consumers change behavior, sometimes permanently due to stresses 259 00:14:57,320 --> 00:14:59,600 Speaker 1: We certainly saw that during the Great Recession, and we 260 00:14:59,680 --> 00:15:02,440 Speaker 1: certainly you saw that during the pandemic. In the case 261 00:15:02,440 --> 00:15:05,720 Speaker 1: of the pandemic, we saw an acceleration in secular trends 262 00:15:06,240 --> 00:15:08,520 Speaker 1: um which you know, you know, and I've talked a 263 00:15:08,560 --> 00:15:12,960 Speaker 1: lot um about these trends, you know, whether it's card cutting, 264 00:15:13,160 --> 00:15:16,120 Speaker 1: it's the move to streaming, it's the shift of advertising 265 00:15:16,200 --> 00:15:20,640 Speaker 1: from you know, traditional um, you know, media to digital. 266 00:15:20,920 --> 00:15:25,080 Speaker 1: All of those things accelerated during the pandemic. Um If 267 00:15:25,080 --> 00:15:27,920 Speaker 1: we get another economic downturn, we certainly think that that 268 00:15:27,960 --> 00:15:31,440 Speaker 1: could re accelerate those trends again. If there was one 269 00:15:31,560 --> 00:15:34,400 Speaker 1: recurring theme that I kept hitting on time and again 270 00:15:34,440 --> 00:15:37,600 Speaker 1: in the podcast interviews I did this year, it was 271 00:15:37,760 --> 00:15:41,360 Speaker 1: what it's like for producers to deal with the streaming giants. 272 00:15:41,960 --> 00:15:45,680 Speaker 1: On the one hand, companies like Netflix and Apple mean 273 00:15:45,720 --> 00:15:50,160 Speaker 1: there's more depocketed buyers for programming than ever before. On 274 00:15:50,200 --> 00:15:54,560 Speaker 1: the other hand, streaming services have enormous leverage in those negotiations. 275 00:15:55,320 --> 00:15:59,600 Speaker 1: Fresh offer, Netflix hit Peaky Blinders. Veteran TV producer Karen 276 00:15:59,680 --> 00:16:02,200 Speaker 1: mann a Box talked with me about what it's like 277 00:16:02,360 --> 00:16:06,600 Speaker 1: operating is a small independent entity in this space. Then 278 00:16:06,600 --> 00:16:09,440 Speaker 1: there was Michael Ellenberg, who has been on both sides 279 00:16:09,480 --> 00:16:13,480 Speaker 1: of the table, having previously worked at HBO before segueing 280 00:16:13,520 --> 00:16:16,600 Speaker 1: to his own company, which produced the Apple TV Plus 281 00:16:16,600 --> 00:16:21,440 Speaker 1: series Pachinko. But first, let's hear from William Sherrick, producer 282 00:16:21,440 --> 00:16:25,400 Speaker 1: of the action movie Ambulance, about how he decides which 283 00:16:25,440 --> 00:16:28,800 Speaker 1: movies are best to produce for streaming or for theaters. 284 00:16:29,800 --> 00:16:32,400 Speaker 1: Limited series is at the night Agent set up at 285 00:16:32,440 --> 00:16:36,160 Speaker 1: Netflix as well. It's it's a busy year. Um, what 286 00:16:36,400 --> 00:16:42,600 Speaker 1: is the next phase of growth for your company? UM, 287 00:16:42,640 --> 00:16:44,560 Speaker 1: you know, we kind of look at it in different phases. 288 00:16:44,600 --> 00:16:47,960 Speaker 1: I think phase one because you know, Jamie, Paul and I, 289 00:16:48,120 --> 00:16:50,560 Speaker 1: my two partners, um, have all been doing this for 290 00:16:50,600 --> 00:16:54,480 Speaker 1: a pretty long time. It was proving to ourselves in 291 00:16:54,520 --> 00:16:57,960 Speaker 1: the industry that as a partnership, the three of us 292 00:16:58,000 --> 00:16:59,560 Speaker 1: could be successful in sort of what you would call 293 00:16:59,560 --> 00:17:04,879 Speaker 1: the tradition producing, you know, the traditional producing ways, developing material, 294 00:17:04,920 --> 00:17:07,720 Speaker 1: getting out in the marketplace, getting the maid having to 295 00:17:07,720 --> 00:17:10,400 Speaker 1: be successful. I think year one and to prove that, 296 00:17:10,840 --> 00:17:14,080 Speaker 1: you know, Scream came out was was successful. We're super 297 00:17:14,119 --> 00:17:16,280 Speaker 1: excited we were getting a sequel, will shoot this summer. 298 00:17:16,840 --> 00:17:20,440 Speaker 1: Um Ambulance, I could not be more proud of as well. 299 00:17:20,600 --> 00:17:23,679 Speaker 1: You know, we put it together. It's a it's a 300 00:17:23,720 --> 00:17:26,320 Speaker 1: great piece of material with an amazing filmmaker and stars, 301 00:17:26,320 --> 00:17:29,159 Speaker 1: and Universal is really happy and they've been an unbelievable partner. 302 00:17:29,920 --> 00:17:32,280 Speaker 1: Our first TV show is a series of Netflix that 303 00:17:32,359 --> 00:17:35,680 Speaker 1: Shawn Ryan created with us UM based on a book 304 00:17:35,720 --> 00:17:38,959 Speaker 1: we option called The Night Agent. Not to compare myself 305 00:17:39,320 --> 00:17:41,680 Speaker 1: in any way to George Lucas, but if you if 306 00:17:41,680 --> 00:17:45,000 Speaker 1: you did create an family at the center of what 307 00:17:45,040 --> 00:17:47,840 Speaker 1: we're talking about, if you did a great hit, you didn't. 308 00:17:47,880 --> 00:17:50,240 Speaker 1: You don't know the manifestations. You don't know that there'll 309 00:17:50,280 --> 00:17:52,760 Speaker 1: be DVDs. You don't know that there'll be laser toys. 310 00:17:52,800 --> 00:17:55,480 Speaker 1: You really you know, you don't know, but you ask questions. 311 00:17:55,920 --> 00:17:58,639 Speaker 1: So I just asked everybody, what do you think? Because 312 00:17:58,680 --> 00:18:02,000 Speaker 1: people here in England go to Abram Mitzvah dressed up 313 00:18:02,040 --> 00:18:04,280 Speaker 1: as as a Peaky Blinder. There are weddings right around 314 00:18:04,280 --> 00:18:09,240 Speaker 1: my neighborhood all Peaky Blinder themed. They embody the feeling 315 00:18:09,280 --> 00:18:13,600 Speaker 1: of the Peaky Blinders so deeply. The haircuts that you 316 00:18:13,600 --> 00:18:15,639 Speaker 1: know that. I went to Paris the other day and 317 00:18:15,920 --> 00:18:17,960 Speaker 1: some waiter said to me something and I just looked 318 00:18:17,960 --> 00:18:20,000 Speaker 1: at and said, I bet your a peaky blinder. He said, yeah, 319 00:18:20,040 --> 00:18:22,960 Speaker 1: I am. And he said, but if my father ever 320 00:18:23,040 --> 00:18:24,960 Speaker 1: knew I was talking to you, And I said, tell 321 00:18:24,960 --> 00:18:26,760 Speaker 1: me more, he said, my father and I don't speak 322 00:18:26,800 --> 00:18:30,320 Speaker 1: except for we talked about peaky blinders. I don't know 323 00:18:30,359 --> 00:18:34,600 Speaker 1: that I'm necessarily seeing much differentiation in the current landscape. 324 00:18:34,600 --> 00:18:36,960 Speaker 1: It just seems like because of the volume of all 325 00:18:36,960 --> 00:18:40,720 Speaker 1: the content out there, everybody's buying everything. Am I reading 326 00:18:40,760 --> 00:18:42,840 Speaker 1: it wrong? Do you get a clear sense of like, 327 00:18:42,960 --> 00:18:45,760 Speaker 1: note this company is looking for X, this company is 328 00:18:45,800 --> 00:18:49,480 Speaker 1: looking for why. I think Andrew super Well stayed your question. 329 00:18:49,640 --> 00:18:53,200 Speaker 1: I think what's most what's probably more relevant now about 330 00:18:53,240 --> 00:18:56,080 Speaker 1: the streamers is what they share in common, right in 331 00:18:56,119 --> 00:18:59,960 Speaker 1: that regard um, which is, um, you know, they're all 332 00:19:00,040 --> 00:19:02,920 Speaker 1: doing sufficient volume that it's hard to say there's a 333 00:19:03,280 --> 00:19:05,760 Speaker 1: you know, with with some exceptions at each place. You 334 00:19:05,800 --> 00:19:08,320 Speaker 1: know that, but that there's really a show that would 335 00:19:08,359 --> 00:19:13,760 Speaker 1: only land somewhere that said, um, these companies we believe 336 00:19:13,760 --> 00:19:16,720 Speaker 1: in the human factor, like human beings mattered the human 337 00:19:16,720 --> 00:19:21,679 Speaker 1: beings to do these jobs. Mattering who are here? From 338 00:19:21,760 --> 00:19:25,520 Speaker 1: Larry Mistel of Primary Wave Entertainment, who sounds like the 339 00:19:25,560 --> 00:19:29,359 Speaker 1: ambitious Brooklyn board businessman that he is, as he explains 340 00:19:29,440 --> 00:19:32,640 Speaker 1: why the market from music catalogs is so red hot 341 00:19:32,680 --> 00:19:43,240 Speaker 1: in an interview with Deputy Music editor Jim Oswad. We 342 00:19:43,359 --> 00:19:47,000 Speaker 1: have somewhere now between fifty and six thousand copyrights. Our 343 00:19:47,040 --> 00:19:50,879 Speaker 1: competitors have, you know, three million, four million, two million. 344 00:19:51,520 --> 00:19:53,640 Speaker 1: I don't, And by the way, our competitors are all good, 345 00:19:54,160 --> 00:19:58,400 Speaker 1: but you can't possibly market three or four million copyrights. 346 00:19:58,920 --> 00:20:05,400 Speaker 1: You can't. We can market copyrights and helen artists. They're 347 00:20:05,440 --> 00:20:08,399 Speaker 1: going to be a priori. In my job, I enjoy 348 00:20:08,480 --> 00:20:11,760 Speaker 1: nothing more than making new contacts and learning new things 349 00:20:11,800 --> 00:20:15,640 Speaker 1: about how this industry works. Three of my favorite episodes 350 00:20:15,640 --> 00:20:19,280 Speaker 1: along those lines this year were conversations with Susan Brandt, 351 00:20:19,560 --> 00:20:24,200 Speaker 1: the CEO of Dr SEUs Enterprises, Henry Munos, the activist 352 00:20:24,400 --> 00:20:28,119 Speaker 1: entrepreneur who bought the comedy streamer Funny or Die, and 353 00:20:28,200 --> 00:20:32,520 Speaker 1: Jeff Scotland, who runs the growing Hollywood studio lot business 354 00:20:32,560 --> 00:20:36,879 Speaker 1: for Hudson Pacific. You are working with content that is 355 00:20:36,920 --> 00:20:39,760 Speaker 1: beyond this, you know the original canon of what Dr 356 00:20:39,840 --> 00:20:43,240 Speaker 1: SEUs left left. How do you what is the gut check? 357 00:20:43,280 --> 00:20:45,879 Speaker 1: How do you determine the quality to control that this 358 00:20:46,000 --> 00:20:49,320 Speaker 1: is worthy of the Sieux brand. I think, Um, you 359 00:20:49,359 --> 00:20:52,840 Speaker 1: have to pick your partners really carefully in any venture, 360 00:20:52,960 --> 00:20:55,320 Speaker 1: whether obviously you know you're making T shirts or a 361 00:20:55,320 --> 00:20:58,560 Speaker 1: cruise ship partnership, You've got to make sure and we 362 00:20:58,640 --> 00:21:01,200 Speaker 1: try to make sure it's always best in class. And 363 00:21:01,280 --> 00:21:04,919 Speaker 1: that's where meeting that team, uh, seeing what they've done before, 364 00:21:05,280 --> 00:21:08,760 Speaker 1: having discussions about how they might utilize the property. That's 365 00:21:08,760 --> 00:21:11,680 Speaker 1: where your gut comes in, UM, And then I think 366 00:21:11,720 --> 00:21:14,880 Speaker 1: you trust you know those partners, you really do. There 367 00:21:14,920 --> 00:21:17,520 Speaker 1: is a sense of letting go. UM. You if you 368 00:21:17,600 --> 00:21:20,720 Speaker 1: do find and you find the experts and your gut 369 00:21:20,720 --> 00:21:23,359 Speaker 1: tells you that's the right team. You know, you we 370 00:21:23,480 --> 00:21:26,040 Speaker 1: understand the DNA of it, they undertand the expertise of 371 00:21:26,119 --> 00:21:28,919 Speaker 1: their genre, you have to let them go. And so 372 00:21:29,000 --> 00:21:30,920 Speaker 1: there is a bit of a leap of faith, UM 373 00:21:30,960 --> 00:21:34,840 Speaker 1: that says, I'm going to give you this this property, 374 00:21:34,880 --> 00:21:39,080 Speaker 1: and you're gonna you're gonna caretake it. There's checkpoints for sure. UM. 375 00:21:39,119 --> 00:21:41,359 Speaker 1: You know. All the way, I'm very actively involved in 376 00:21:41,359 --> 00:21:44,359 Speaker 1: the major entertainment deals. So I'll work with the product, 377 00:21:44,640 --> 00:21:48,680 Speaker 1: the producing parties, the creative teams on films, on television, 378 00:21:48,680 --> 00:21:51,639 Speaker 1: even the cruise ships, but all the way down, you know, 379 00:21:51,680 --> 00:21:55,320 Speaker 1: every member of the team is touching those products. Henry, 380 00:21:55,400 --> 00:21:58,399 Speaker 1: let's take a step back and tell us about the business, 381 00:21:58,440 --> 00:22:01,199 Speaker 1: the different businesses that you have built, and sort of 382 00:22:01,200 --> 00:22:03,199 Speaker 1: the operation that you had that allowed you to do 383 00:22:03,240 --> 00:22:06,480 Speaker 1: the funnier I deal. Well, I've never been involved in 384 00:22:06,480 --> 00:22:10,920 Speaker 1: a business that I was educated to undertake. So when 385 00:22:10,960 --> 00:22:15,240 Speaker 1: I was a very young man, I was living in Texas. 386 00:22:15,240 --> 00:22:18,160 Speaker 1: I've gone back to Texas after college because my father 387 00:22:18,320 --> 00:22:22,720 Speaker 1: had gotten sick, and somehow, out of that experience found 388 00:22:22,760 --> 00:22:26,639 Speaker 1: myself in architecture. I'm not a trained architect, but I 389 00:22:26,680 --> 00:22:30,240 Speaker 1: think at this point and I'm a really good architect 390 00:22:30,800 --> 00:22:36,400 Speaker 1: of change and and that business um in combination with 391 00:22:37,480 --> 00:22:39,800 Speaker 1: my political activity, you know, I had the great had 392 00:22:39,840 --> 00:22:43,080 Speaker 1: a great mentor. Her name was Ann Richard. She was funny, right, 393 00:22:43,200 --> 00:22:47,320 Speaker 1: and she used her big personality to create change, to 394 00:22:47,359 --> 00:22:49,240 Speaker 1: create a new Texas. And I was a part of 395 00:22:49,280 --> 00:22:52,800 Speaker 1: that movement. I was the Transportation commissioner for the State 396 00:22:52,840 --> 00:22:56,359 Speaker 1: of Texas for almost four years very I was very young, 397 00:22:57,119 --> 00:23:00,280 Speaker 1: and it taught me a lot about the difficulties of 398 00:23:00,320 --> 00:23:04,399 Speaker 1: moving institutions and bureaucracies forward. It also taught me that 399 00:23:04,440 --> 00:23:07,840 Speaker 1: the stories of my people, of my community weren't the 400 00:23:07,920 --> 00:23:13,159 Speaker 1: stories that were in museums or archives or libraries. It 401 00:23:13,200 --> 00:23:15,399 Speaker 1: taught me a lot about if you're going to build 402 00:23:15,400 --> 00:23:19,400 Speaker 1: a building, design a university, for example, that it's important 403 00:23:19,440 --> 00:23:21,919 Speaker 1: that that university look like the people that were hoping 404 00:23:22,240 --> 00:23:25,920 Speaker 1: to inspire. So that started about a thirty year journey 405 00:23:26,280 --> 00:23:30,119 Speaker 1: to try and imprint on the built environment, on architecture 406 00:23:30,119 --> 00:23:35,600 Speaker 1: and urban planning, the cultural traditions, the history, the storytelling 407 00:23:35,640 --> 00:23:39,320 Speaker 1: of Latinos in this country. That led me to the 408 00:23:39,440 --> 00:23:42,879 Speaker 1: board of the National Board of the Smithsonian Institution. Are 409 00:23:43,000 --> 00:23:45,960 Speaker 1: very happy that I just was elected the chairman of 410 00:23:46,240 --> 00:23:49,280 Speaker 1: the newest board, which is the board to create the 411 00:23:49,359 --> 00:23:53,080 Speaker 1: National Museum of the American Latino. And that is what 412 00:23:53,200 --> 00:23:57,000 Speaker 1: introduced me to President Obama. And President Obama really was 413 00:23:57,040 --> 00:24:01,760 Speaker 1: the person who taught me that I could change create 414 00:24:01,880 --> 00:24:07,200 Speaker 1: massive change in cultural institutions and businesses. So long story short, 415 00:24:07,240 --> 00:24:11,680 Speaker 1: I found myself working to change healthcare in New York 416 00:24:11,720 --> 00:24:14,840 Speaker 1: City and that has been eight years now, and I'm 417 00:24:14,840 --> 00:24:20,320 Speaker 1: not a doctor, but um I have learned how to 418 00:24:20,359 --> 00:24:25,439 Speaker 1: create a closer connection between a very confusing system and 419 00:24:25,720 --> 00:24:28,760 Speaker 1: people in this country and in particular people who don't 420 00:24:28,840 --> 00:24:32,719 Speaker 1: necessarily speak English, just like my grandmother when she needed 421 00:24:33,119 --> 00:24:35,760 Speaker 1: medical attention. And we've figured out a way to do 422 00:24:35,800 --> 00:24:40,920 Speaker 1: it at a more affordable cost and improving quality and 423 00:24:40,960 --> 00:24:46,159 Speaker 1: doing what really needs to happen, which is allowing working 424 00:24:46,200 --> 00:24:50,080 Speaker 1: people to have the same approach to wellness and preventative 425 00:24:50,119 --> 00:24:52,240 Speaker 1: care and not to wait until it's too late to 426 00:24:52,320 --> 00:24:55,160 Speaker 1: get into the hospital. So I have built a business 427 00:24:55,320 --> 00:24:59,040 Speaker 1: in Texas and built a business in New York, both 428 00:24:59,080 --> 00:25:02,680 Speaker 1: of them are involved in this kind of intersection right 429 00:25:02,760 --> 00:25:08,240 Speaker 1: of sign and politics or government, and and now I 430 00:25:08,280 --> 00:25:10,359 Speaker 1: want to do what has not been done I think 431 00:25:10,600 --> 00:25:13,920 Speaker 1: in in the entertainment industry, is to bring that same 432 00:25:14,080 --> 00:25:21,600 Speaker 1: kind of leadership, ownership and inclusiveness to entertainment on behalf 433 00:25:21,640 --> 00:25:26,239 Speaker 1: of the Latino community, communities of color, gay people. Let 434 00:25:26,280 --> 00:25:30,000 Speaker 1: me ask you in the big picture, how has scale benefited? 435 00:25:30,000 --> 00:25:32,520 Speaker 1: How has the scale of adding more properties? And now 436 00:25:32,600 --> 00:25:35,000 Speaker 1: you know the potended for Keyhote and forgive me that 437 00:25:35,040 --> 00:25:37,880 Speaker 1: deal is done, that is a done deal. So adding Keyhote, 438 00:25:37,960 --> 00:25:41,720 Speaker 1: how has scale helped you skill? I would say is 439 00:25:41,720 --> 00:25:45,359 Speaker 1: that the core of our strategy and the reason is 440 00:25:45,440 --> 00:25:52,280 Speaker 1: because ultimately, you know, we believe that having the assets 441 00:25:52,320 --> 00:25:55,840 Speaker 1: in the right markets, in the right services is really 442 00:25:55,880 --> 00:25:58,840 Speaker 1: important to the studios as those students get bigger and 443 00:25:58,920 --> 00:26:03,399 Speaker 1: their their businesses become more complex and they're shooting in 444 00:26:03,520 --> 00:26:10,160 Speaker 1: multiple geographies, um, multiple types of multiple language, local language 445 00:26:10,240 --> 00:26:13,040 Speaker 1: is the thing, all of it, yeah, exactly, And so 446 00:26:13,080 --> 00:26:16,520 Speaker 1: that you can imagine is that. I mean, it's incredibly complicated, right, 447 00:26:16,560 --> 00:26:19,040 Speaker 1: and so the co financing stuff, they have different partners, 448 00:26:19,240 --> 00:26:22,000 Speaker 1: but what they really want is almost an easy button 449 00:26:22,640 --> 00:26:27,119 Speaker 1: for some aspect of their business. And so the way 450 00:26:27,440 --> 00:26:29,080 Speaker 1: you know, we look at this, the way I really 451 00:26:29,080 --> 00:26:31,240 Speaker 1: look at this is we're in the picks and shovels business. 452 00:26:31,400 --> 00:26:34,719 Speaker 1: We're in the business of providing picks and shovels for 453 00:26:34,800 --> 00:26:37,440 Speaker 1: the studio folks to go produce their content and mind 454 00:26:37,440 --> 00:26:40,200 Speaker 1: for goal to come up with that next amazing piece 455 00:26:40,200 --> 00:26:42,640 Speaker 1: of content. And so how can we make it easier 456 00:26:42,680 --> 00:26:44,720 Speaker 1: for them to do that, whether you're filming and you 457 00:26:44,720 --> 00:26:48,800 Speaker 1: know geographically wherever around the world, whatever services you need, 458 00:26:49,080 --> 00:26:51,160 Speaker 1: how do we make it as easy as possible so 459 00:26:51,240 --> 00:26:53,960 Speaker 1: that you know, you don't need to make twenty phone calls, 460 00:26:54,000 --> 00:26:56,239 Speaker 1: you don't need to go figure out how to go 461 00:26:56,520 --> 00:26:58,960 Speaker 1: you know, put together all the picks and shovels to 462 00:26:59,000 --> 00:27:02,480 Speaker 1: go produce this content. So scale is a way to 463 00:27:02,520 --> 00:27:05,600 Speaker 1: do that, right. You can't you can't make it easier 464 00:27:05,680 --> 00:27:08,400 Speaker 1: unless you have those assets and you have that scale, right, 465 00:27:08,760 --> 00:27:10,680 Speaker 1: And so that's really a big part of the strategy 466 00:27:10,720 --> 00:27:13,760 Speaker 1: and really fundamentally underscoring our acquisition of some of these 467 00:27:13,800 --> 00:27:17,960 Speaker 1: companies being in all those markets. And you know you 468 00:27:18,160 --> 00:27:21,280 Speaker 1: that that really is it, and and listen, it's not 469 00:27:21,520 --> 00:27:24,399 Speaker 1: you know, me talking about this is not revealing some 470 00:27:24,520 --> 00:27:27,879 Speaker 1: secret sauce. I think a lot of people would agree 471 00:27:28,359 --> 00:27:32,960 Speaker 1: that collecting those assets in those key markets, it's kind 472 00:27:32,960 --> 00:27:36,080 Speaker 1: of obvious, right, It's just super hard to pull it off. 473 00:27:36,760 --> 00:27:39,159 Speaker 1: And that's in the secret sauce of what we do 474 00:27:39,280 --> 00:27:43,720 Speaker 1: is our ability to invest in and operate real estate 475 00:27:44,119 --> 00:27:47,359 Speaker 1: and operating companies. And what you find is that in 476 00:27:47,440 --> 00:27:50,040 Speaker 1: the world, there's not a lot of people who have 477 00:27:50,240 --> 00:27:54,920 Speaker 1: the ability to sort of speak and and and execute 478 00:27:54,960 --> 00:27:58,800 Speaker 1: real estate and also speak and execute operating businesses. And 479 00:27:58,840 --> 00:28:01,400 Speaker 1: that's really what this industry is, and that's really where 480 00:28:01,400 --> 00:28:06,000 Speaker 1: the opportunity is to scale this hybrid business to ultimately 481 00:28:06,119 --> 00:28:09,080 Speaker 1: simplify the lives of all the people producing content. So 482 00:28:09,119 --> 00:28:12,000 Speaker 1: this this fundamental belief we have and listen, there's gonna 483 00:28:12,000 --> 00:28:14,760 Speaker 1: be dips and ups with content production, and we can 484 00:28:14,800 --> 00:28:16,639 Speaker 1: all debate about how much is going to get produced. 485 00:28:16,720 --> 00:28:18,520 Speaker 1: R Who knows. I couldn't tell you what's gonna happen 486 00:28:18,560 --> 00:28:21,080 Speaker 1: next week, let along next year, but I will say this, 487 00:28:21,200 --> 00:28:24,760 Speaker 1: we do a very strong conviction that the amount of 488 00:28:24,840 --> 00:28:28,720 Speaker 1: volume is not really going to go down ultimately over 489 00:28:28,760 --> 00:28:31,359 Speaker 1: the next five years, ten years, twenty three years. The 490 00:28:31,480 --> 00:28:34,600 Speaker 1: world needs more content and we have conviction around them. 491 00:28:35,920 --> 00:28:38,040 Speaker 1: This year, I was so happy to be out and 492 00:28:38,040 --> 00:28:40,600 Speaker 1: about in the field again with my Zoom recorder and 493 00:28:40,680 --> 00:28:44,200 Speaker 1: microphone in hand. I was happy to deliver what for 494 00:28:44,240 --> 00:28:47,760 Speaker 1: me were very special episodes of Strictly Business. In June 495 00:28:47,760 --> 00:28:51,680 Speaker 1: and August, I went to two fan conventions and spoke 496 00:28:51,760 --> 00:28:55,240 Speaker 1: to young media consumers in the wild about what they watch, 497 00:28:55,520 --> 00:28:58,760 Speaker 1: how they watch, when they watch, and how they discover 498 00:28:58,920 --> 00:29:03,440 Speaker 1: new content. Every single encounter I had was eye opening 499 00:29:03,480 --> 00:29:06,560 Speaker 1: for me, and I hope my selections were enlightening for 500 00:29:06,640 --> 00:29:10,240 Speaker 1: listeners as well. First, we'll hear from the voices of 501 00:29:10,360 --> 00:29:14,040 Speaker 1: vidkn episode recorded in June on a very hot day 502 00:29:14,080 --> 00:29:17,920 Speaker 1: in Anaheim, California. The second clip comes from the K 503 00:29:18,200 --> 00:29:22,040 Speaker 1: pop culture fandom event k con held at the Los 504 00:29:22,040 --> 00:29:26,160 Speaker 1: Angeles Convention Center in August. UM. Well, I think nowadays 505 00:29:26,200 --> 00:29:29,040 Speaker 1: like social media is just like you know, a very 506 00:29:29,040 --> 00:29:32,320 Speaker 1: glorified what word of mouth, So it's I find things 507 00:29:32,360 --> 00:29:35,000 Speaker 1: just through other people sharing things. And that's what I 508 00:29:35,080 --> 00:29:37,440 Speaker 1: really like about the Internet is, uh, it's a lot 509 00:29:37,480 --> 00:29:41,000 Speaker 1: of cool entertainment comes up, like in a non corporate 510 00:29:41,160 --> 00:29:45,000 Speaker 1: setting where it's very organic and genuinely entertaining, where I 511 00:29:45,000 --> 00:29:47,320 Speaker 1: think an older media you had to you know, be 512 00:29:47,400 --> 00:29:50,160 Speaker 1: big in corporate and have advertising money. So yeah, I 513 00:29:50,160 --> 00:29:53,320 Speaker 1: find everything through social media and just hearing what people 514 00:29:53,360 --> 00:29:55,840 Speaker 1: are talking about. I think you just see like one 515 00:29:55,920 --> 00:29:59,440 Speaker 1: video or like one compilation of them, and you just 516 00:30:00,320 --> 00:30:03,360 Speaker 1: you find them. They're like their profiles and you go 517 00:30:03,520 --> 00:30:07,000 Speaker 1: from there and like a like a domino effect kind 518 00:30:07,000 --> 00:30:09,080 Speaker 1: of you see one thing, you go to more and 519 00:30:09,120 --> 00:30:12,800 Speaker 1: more and more. Yeah, then you end up here. I 520 00:30:12,840 --> 00:30:14,880 Speaker 1: also find a lot of people through word of mouth, 521 00:30:14,960 --> 00:30:17,120 Speaker 1: Like online I'll get friends at dm me about like, oh, 522 00:30:17,160 --> 00:30:19,480 Speaker 1: look at this person's stream. They're so cool with this video. 523 00:30:19,520 --> 00:30:21,760 Speaker 1: It's blowing up right now and stuff like that. And 524 00:30:21,800 --> 00:30:25,000 Speaker 1: also just like randomly deep diving because like the algorithm 525 00:30:25,000 --> 00:30:28,600 Speaker 1: for like YouTube and Twitch, both are very in a 526 00:30:28,640 --> 00:30:31,320 Speaker 1: way able to push out new things and new content. 527 00:30:31,520 --> 00:30:33,640 Speaker 1: I came the k com because I want to support 528 00:30:33,640 --> 00:30:35,360 Speaker 1: A T. S and and hype in and I thought 529 00:30:35,360 --> 00:30:36,960 Speaker 1: it would be a lot of fun as a long 530 00:30:37,000 --> 00:30:40,320 Speaker 1: time K pop fan to be around other K poppers 531 00:30:40,920 --> 00:30:42,760 Speaker 1: and um to get to do high touch with A T. 532 00:30:42,880 --> 00:30:46,160 Speaker 1: S and Hypen. I've learned that the high touches when 533 00:30:46,200 --> 00:30:49,240 Speaker 1: you go up when they all go down the line. Yeah, 534 00:30:49,360 --> 00:30:52,560 Speaker 1: so it's usually like a high five or you know, 535 00:30:52,680 --> 00:30:54,360 Speaker 1: spend a little time talking to them, but I think 536 00:30:54,360 --> 00:30:56,800 Speaker 1: this time it's more like a high wave where you 537 00:30:56,880 --> 00:30:58,640 Speaker 1: just go along a new way at them. But I 538 00:30:58,640 --> 00:31:00,800 Speaker 1: mean to get that little fives gens of eye contact 539 00:31:00,920 --> 00:31:03,800 Speaker 1: is totally worth it for us anyway the other people 540 00:31:03,800 --> 00:31:07,360 Speaker 1: it sounds crazy, but it's definitely worth it for us. Emotion, 541 00:31:07,800 --> 00:31:10,560 Speaker 1: passion and like effort that they put in because they 542 00:31:10,560 --> 00:31:14,080 Speaker 1: do this for years, and like when you do something 543 00:31:14,200 --> 00:31:17,160 Speaker 1: like you put your dedicated to it, it shows and results. 544 00:31:17,200 --> 00:31:18,800 Speaker 1: And like most of the groups that I do stand, 545 00:31:19,280 --> 00:31:20,960 Speaker 1: they show a lot and they put a lot and 546 00:31:20,960 --> 00:31:24,040 Speaker 1: they like suffered a lot to like make us happy. 547 00:31:24,320 --> 00:31:28,280 Speaker 1: And that's pretty much it for me, like you've seen 548 00:31:28,320 --> 00:31:33,400 Speaker 1: the commitment, like things that make us happy, like when 549 00:31:33,400 --> 00:31:34,880 Speaker 1: we're in a sad moment, that we could turn to 550 00:31:34,960 --> 00:31:38,760 Speaker 1: them to look at it. That's like the dedication that 551 00:31:38,800 --> 00:31:41,880 Speaker 1: they put in for us to receive us to travel 552 00:31:41,920 --> 00:31:44,480 Speaker 1: this far to also they get it in live eighties. 553 00:31:44,480 --> 00:31:47,800 Speaker 1: In my opinion, UM have done so much to help 554 00:31:47,840 --> 00:31:53,240 Speaker 1: me through UM through. They've been there for me more 555 00:31:53,320 --> 00:31:56,800 Speaker 1: than most people whatever. Think they were my comfort zone. 556 00:31:56,840 --> 00:32:00,760 Speaker 1: So I'm very appreciative of every day, so anything to 557 00:32:00,880 --> 00:32:03,880 Speaker 1: help them and all that. In the fall, Strictly Business 558 00:32:03,920 --> 00:32:06,480 Speaker 1: dove into the heart of l A's mayoral race with 559 00:32:06,520 --> 00:32:10,840 Speaker 1: an interview with candidate Rick Caruso. Caruso, a longtime real 560 00:32:10,920 --> 00:32:13,680 Speaker 1: estate developer in the region, was only too eager to 561 00:32:13,720 --> 00:32:17,280 Speaker 1: speak to varieties Hollywood audience. He's well aware of how 562 00:32:17,320 --> 00:32:20,960 Speaker 1: this industry powers so much of the region. We made 563 00:32:21,000 --> 00:32:23,800 Speaker 1: efforts to do a podcast interview with Karen Bass in 564 00:32:23,840 --> 00:32:26,600 Speaker 1: the late summer and early fall, now that she is 565 00:32:26,680 --> 00:32:29,960 Speaker 1: Los Angeles mayor. Bass is high on our wish list 566 00:32:30,040 --> 00:32:34,360 Speaker 1: for three guests. Meanwhile, there are rumblings that Caruso is 567 00:32:34,400 --> 00:32:37,840 Speaker 1: not done seeking elected office in the Golden State. Have 568 00:32:38,000 --> 00:32:40,440 Speaker 1: you given much thought to how you know, part of 569 00:32:40,480 --> 00:32:43,520 Speaker 1: your role obviously, were you to be elected mayor, part 570 00:32:43,520 --> 00:32:46,480 Speaker 1: of your role as being an ambassador is selling Los Angeles. 571 00:32:46,520 --> 00:32:49,560 Speaker 1: Given a sense of how you would use the incredible 572 00:32:49,600 --> 00:32:54,000 Speaker 1: creative economy here as a selling tool for Los Angeles 573 00:32:54,040 --> 00:32:57,840 Speaker 1: outside of outside of California. Well, I do believe that 574 00:32:57,960 --> 00:33:00,200 Speaker 1: the mayor of Los Angeles has to be a year 575 00:33:00,240 --> 00:33:03,720 Speaker 1: leader for Los Angeles and use every tool they have 576 00:33:03,840 --> 00:33:06,400 Speaker 1: in their toolbox in order to do that. And the 577 00:33:06,520 --> 00:33:11,640 Speaker 1: entertainment industry is fascinating to people, right It's there's a 578 00:33:11,640 --> 00:33:13,880 Speaker 1: lot of interest, Yes, and there's a lot of interest 579 00:33:13,960 --> 00:33:16,800 Speaker 1: because it's it's magic land, and it's the creation of 580 00:33:16,880 --> 00:33:18,719 Speaker 1: magic and people want to be a part of that. 581 00:33:18,800 --> 00:33:20,720 Speaker 1: And of course I'm going to do that and pull 582 00:33:20,800 --> 00:33:25,120 Speaker 1: in not only the talent, but pull in the creative 583 00:33:25,160 --> 00:33:29,240 Speaker 1: people above the line, below the line to attract other 584 00:33:29,320 --> 00:33:32,000 Speaker 1: businesses to come here and be part of it. You know, 585 00:33:32,120 --> 00:33:34,719 Speaker 1: this is what I'm One of the things I'm so 586 00:33:34,760 --> 00:33:38,160 Speaker 1: excited about is we get the entertainment industry heading in 587 00:33:38,200 --> 00:33:41,040 Speaker 1: the right direction where more is happening in Los Angeles. 588 00:33:41,360 --> 00:33:45,120 Speaker 1: It just builds the economy, create jobs again below and 589 00:33:45,960 --> 00:33:49,160 Speaker 1: the line and above the line, new development goes on, 590 00:33:49,320 --> 00:33:53,800 Speaker 1: more housing happens right, and the lure, as you said, 591 00:33:54,000 --> 00:33:57,920 Speaker 1: of Hollywood, is really powerful. We closed out the year 592 00:33:57,960 --> 00:34:01,240 Speaker 1: with behind the velvet Rope access us to two companies 593 00:34:01,240 --> 00:34:05,000 Speaker 1: on the polar ends of the talent representation sector. A 594 00:34:05,200 --> 00:34:08,560 Speaker 1: PA is going into its sixtieth year in business and 595 00:34:08,600 --> 00:34:11,640 Speaker 1: it's ready to take some new big swings as it 596 00:34:11,719 --> 00:34:14,880 Speaker 1: sorts through the opportunities that have come through the recent 597 00:34:14,920 --> 00:34:19,520 Speaker 1: acquisition of ICAM Partners by CIA. A few miles away 598 00:34:19,560 --> 00:34:22,680 Speaker 1: from a p a s offices, Peter Mitcheli and Jack 599 00:34:22,719 --> 00:34:26,720 Speaker 1: Wiggham are busy trying to build Range Media Partners into 600 00:34:26,760 --> 00:34:31,759 Speaker 1: the talent management agency of the future. We'll close with 601 00:34:31,920 --> 00:34:35,680 Speaker 1: a PAS Jim Gosnell being extremely candid about his dealings 602 00:34:35,719 --> 00:34:39,799 Speaker 1: with the Justice Department during their review of CIA's acquisition 603 00:34:39,840 --> 00:34:43,400 Speaker 1: of ICAM Partners, and that is followed by my favorite 604 00:34:43,440 --> 00:34:47,680 Speaker 1: closing moment of any Strictly Business episode this year, courtesy 605 00:34:47,719 --> 00:34:51,240 Speaker 1: of Jack Wiggham and his mom, I Gotta be honest. 606 00:34:51,280 --> 00:34:55,680 Speaker 1: The conversations were borderline ridiculous in how they thought about 607 00:34:55,680 --> 00:34:59,680 Speaker 1: the business works that c A and I Sam are 608 00:34:59,680 --> 00:35:01,840 Speaker 1: gonna such a hole in the business. They're gonna be 609 00:35:01,880 --> 00:35:04,080 Speaker 1: able to go to Netflix and tell them what they're 610 00:35:04,080 --> 00:35:06,319 Speaker 1: gonna buy, and when they're gonna buy it, who's gonna 611 00:35:06,360 --> 00:35:08,640 Speaker 1: star in it? And all that. And I said, you 612 00:35:08,680 --> 00:35:11,560 Speaker 1: were so wrong. That's not how I can only tell you. 613 00:35:11,600 --> 00:35:14,279 Speaker 1: It was one polls five lawyers on the phone, and 614 00:35:14,320 --> 00:35:17,279 Speaker 1: they're going you were quoted as saying that this is 615 00:35:17,320 --> 00:35:19,080 Speaker 1: good for them and it's going to be great for you. 616 00:35:19,160 --> 00:35:20,880 Speaker 1: Do you stand by that. I don't know that was 617 00:35:20,920 --> 00:35:24,040 Speaker 1: an understatement. It's gonna be fantastic for us. I said, 618 00:35:24,080 --> 00:35:27,440 Speaker 1: you don't get it. Clients will become available, agents will 619 00:35:27,480 --> 00:35:30,640 Speaker 1: become available. You know, who knows how that's all going 620 00:35:30,719 --> 00:35:33,759 Speaker 1: to shake out, but it creates an opportunity for everybody. 621 00:35:34,000 --> 00:35:36,440 Speaker 1: It's who decides to take advantage of it or not. 622 00:35:37,080 --> 00:35:40,480 Speaker 1: And I I said, you didn't care about Disney and 623 00:35:40,960 --> 00:35:44,080 Speaker 1: you know Fox getting together that they body, Why is 624 00:35:44,120 --> 00:35:46,800 Speaker 1: this such a big deal? And I want to also 625 00:35:47,080 --> 00:35:50,839 Speaker 1: say thank you to Jack's mom for making us a 626 00:35:50,920 --> 00:35:54,759 Speaker 1: delicious plate of pumpkin bread, of which I have had 627 00:35:54,840 --> 00:35:56,799 Speaker 1: two pieces and I'm going to go in for a 628 00:35:56,920 --> 00:36:00,520 Speaker 1: third before I leave. The pizza. Four of us. It's 629 00:36:00,520 --> 00:36:05,200 Speaker 1: a shout out to bath, even with the herd back. 630 00:36:05,320 --> 00:36:13,839 Speaker 1: So I love you, mom. Well that was the year 631 00:36:13,880 --> 00:36:18,319 Speaker 1: that was. Thanks for listening to this review of We're 632 00:36:18,320 --> 00:36:22,000 Speaker 1: Excited to hit our fifth anniversary and episode number two 633 00:36:22,080 --> 00:36:26,280 Speaker 1: fifty in the first half of Here's to a prosperous 634 00:36:26,360 --> 00:36:29,680 Speaker 1: new Year for all. We'll be back next week with 635 00:36:29,840 --> 00:36:31,800 Speaker 1: another episode of Strictly Business.