WEBVTT - Streaming Consolidation, Los Angeles Wildfires 0:00:02.520 --> 0:00:07.000 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.640 --> 0:00:12.680 This is Bloomberg Business Week Insight from the reporters and 0:00:12.800 --> 0:00:16.800 editors that bring you America's most trusted business magazine, plus 0:00:17.000 --> 0:00:20.799 global business, finance and tech news. The Bloomberg Business Week 0:00:20.840 --> 0:00:25.560 Podcast with Carol Masser and Tim Stenovek on Bloomberg Radio. 0:00:25.760 --> 0:00:27.920 We are going to stay out WES though to a 0:00:28.000 --> 0:00:29.360 lighter story, no doubt about that. 0:00:29.360 --> 0:00:30.280 We're going to head back. 0:00:30.120 --> 0:00:34.239 To ces in Las Vegas and to some of those 0:00:34.280 --> 0:00:36.360 companies in the tech and media world's changing how we 0:00:36.400 --> 0:00:39.720 consume and how we access content. And among them tim 0:00:39.800 --> 0:00:42.839 is quick Play, which provides cloud solutions and platforms and 0:00:42.920 --> 0:00:46.440 services for OTT content delivery and more. 0:00:46.600 --> 0:00:47.920 Here to tell us what they're up to is the 0:00:47.960 --> 0:00:51.560 CEO of Quickplay, Paul Paster, who has held executive positions 0:00:51.720 --> 0:00:55.080 at media organizations including Disney Plus and Hulu. Paul joins 0:00:55.160 --> 0:00:58.120 us live at CEES in Las Vegas. Paul, great to 0:00:58.160 --> 0:01:00.040 have you with us. We're going to talk about what 0:01:00.200 --> 0:01:02.360 you do with regard to the OTT space, the over 0:01:02.480 --> 0:01:05.240 the top space over at quick Play in just a minute. 0:01:05.240 --> 0:01:08.400 But before that, would love your news on the consolidation 0:01:08.560 --> 0:01:10.280 news that we saw we'd love your views on the 0:01:10.280 --> 0:01:12.440 consolidation news that we saw a little earlier this week 0:01:12.600 --> 0:01:14.920 when it comes to the tie up of Hulu Live 0:01:15.480 --> 0:01:20.200 and of Fubo TV. Curious about what your reaction to that. 0:01:20.240 --> 0:01:22.760 As a former executive at Disney, somebody worked at Hulu 0:01:22.840 --> 0:01:24.640 as well, what do you see as the strategy here? 0:01:27.040 --> 0:01:27.320 Sure? 0:01:27.360 --> 0:01:28.960 Well, first, thank you for so much for having me, 0:01:29.120 --> 0:01:31.440 And second, I know your last story was covering the 0:01:31.440 --> 0:01:34.399 fires in Los Angeles as a prior Los ANGELESO and 0:01:34.400 --> 0:01:36.199 somebody in the media industry, My heart goes out. 0:01:36.040 --> 0:01:36.920 To everybody in Hobery. 0:01:37.040 --> 0:01:40.319 Be safe as it relates to the Fubo and Disney 0:01:41.080 --> 0:01:44.360 announcement obviously this week, Listen, the one thing we need 0:01:44.400 --> 0:01:46.280 to know and understand is this solved a very big 0:01:46.280 --> 0:01:50.760 problem for media companies. The Fubo lawsuit obviously was trying 0:01:50.800 --> 0:01:54.400 to ensure that media companies weren't able to bundle, and 0:01:54.440 --> 0:01:57.440 that would have devastating effects on these bigger media companies 0:01:57.480 --> 0:01:59.560 that still make a lot of money from cable. So 0:01:59.600 --> 0:02:03.160 for two and twenty million dollars plus the combination of 0:02:03.400 --> 0:02:07.040 this venture with both Hulu Plus and Fubu, they've really 0:02:07.080 --> 0:02:10.120 solved a lot of problems both in the lawsuit and 0:02:10.160 --> 0:02:12.360 in driving scale in the industry, which will hopefully let 0:02:12.400 --> 0:02:14.840 them kind of build out new consumer propositions. 0:02:14.919 --> 0:02:17.120 Paul, do you also think that decision by Disney to 0:02:17.160 --> 0:02:20.840 merge with Fubu and also launch its ESPN streaming product 0:02:21.160 --> 0:02:23.560 is kind of enough to I guess you would say 0:02:23.600 --> 0:02:26.920 future proof it's revenue from accelerated cord cutting, which we 0:02:27.000 --> 0:02:27.720 know continues. 0:02:28.960 --> 0:02:29.080 Well. 0:02:29.120 --> 0:02:32.120 Listen, there's still a long term trend where we're seeing 0:02:32.120 --> 0:02:35.200 a decline in the total reach of cable, but this 0:02:35.360 --> 0:02:38.560 most certainly lets them launch the new venue opportunity where 0:02:38.560 --> 0:02:41.960 there is a strong value proposition behind sports and finding 0:02:42.160 --> 0:02:44.600 a level of aggregation that will really solve a consumer 0:02:44.680 --> 0:02:46.799 challenge of where do I find my sports and how 0:02:46.800 --> 0:02:49.160 do I watch them? So this is a win for 0:02:49.240 --> 0:02:51.640 consumers and that this product will begin to be launched, 0:02:51.840 --> 0:02:53.880 and hopefully we'll also find a path for these media 0:02:53.919 --> 0:02:57.400 companies to continue to address some of the reach concerns 0:02:57.400 --> 0:03:00.000 they have over the loss of cable subscriptions. 0:03:00.040 --> 0:03:02.040 Let's go there and give us an understanding of how 0:03:02.080 --> 0:03:04.440 you think they navigate this tricky terrain here, I mean 0:03:04.520 --> 0:03:07.520 the cord cutting that we've seen over the last fifteen 0:03:07.600 --> 0:03:11.440 years or so has just absolutely devastated the traditional PAYTP 0:03:11.600 --> 0:03:14.960 providers and even those cable companies that have been carrying 0:03:14.960 --> 0:03:18.440 that content. These companies, apart from Netflix, are really trying 0:03:18.440 --> 0:03:21.680 to figure out what to do what happens to the 0:03:21.840 --> 0:03:25.359 smaller content players now the Warner Brothers discoveries, the paramounts 0:03:25.600 --> 0:03:27.400 and the like in an environment such as this. 0:03:30.320 --> 0:03:33.639 Yeah, listen, I think every CEO and every person in 0:03:33.639 --> 0:03:35.720 a media company today is trying to figure out how 0:03:35.720 --> 0:03:38.960 do they future prove their business and what we can 0:03:39.040 --> 0:03:41.040 see and what we can tell right from all gen 0:03:41.160 --> 0:03:44.840 Z consumption is that gen Z consumers are going to 0:03:44.880 --> 0:03:46.120 YouTube and going to TikTok. 0:03:46.360 --> 0:03:48.360 They're watching a ton of short form content. 0:03:49.080 --> 0:03:51.600 They spend three hours a day on YouTube and TikTok 0:03:52.040 --> 0:03:54.440 compared to one hour a day with broadcasts and streamers, 0:03:54.640 --> 0:03:58.040 and this is a growing trend among all demographics. So personally, 0:03:58.080 --> 0:04:01.080 where I believe these media companies to be focused is 0:04:01.120 --> 0:04:03.400 how do I begin to own the whole conversation around 0:04:03.440 --> 0:04:06.320 my IP and my content and think about developing a 0:04:06.440 --> 0:04:10.119 short form content and product strategy that really addresses these 0:04:10.320 --> 0:04:12.800 gen Z consumers the way that they like to interact 0:04:12.840 --> 0:04:15.080 with content the way they consume it in these in 0:04:15.120 --> 0:04:17.159 these moments versus lean back experiences. 0:04:17.279 --> 0:04:19.120 They they like to engage. 0:04:19.200 --> 0:04:21.599 I think that's the real opportunity for media companies today, 0:04:21.600 --> 0:04:24.040 if they really want to think about their future and 0:04:24.080 --> 0:04:25.640 not seeding into these other platforms. 0:04:25.720 --> 0:04:28.520 So should Netflix be concerned because they don't necessarily have 0:04:28.600 --> 0:04:32.960 that short form content that TikTok has, that YouTube shorts 0:04:32.960 --> 0:04:34.000 that Instagram reels have. 0:04:36.839 --> 0:04:38.200 I certainly believe so. 0:04:38.400 --> 0:04:40.880 And if you follow my LinkedIn posts, so the last 0:04:40.920 --> 0:04:43.680 couple of weeks, you'll actually know I was challenging Netflix 0:04:43.960 --> 0:04:47.840 largely because of Beyonce Bowl. I am a huge Beyonce fan, 0:04:48.320 --> 0:04:52.320 cowboy Carter fan. I was suiting too for having Netflix 0:04:52.320 --> 0:04:54.880 having the Christmas NFL You too, see you love it? 0:04:54.960 --> 0:04:55.120 Right? 0:04:55.560 --> 0:04:57.560 Well, you will't watch the game, right. They made a 0:04:57.640 --> 0:05:00.160 huge push for people to watch this NFL game on 0:05:00.160 --> 0:05:03.719 on Christmas Day. I personally, all I really cared about 0:05:03.760 --> 0:05:07.720 was watching the halftime show was Beyonce. Ten minutes after 0:05:07.720 --> 0:05:10.280 the broadcast, it was nowhere to be found. No one 0:05:10.320 --> 0:05:12.599 had thought about the fact that they needed to actually 0:05:12.960 --> 0:05:15.840 clip it immediately and post it and make it available 0:05:15.839 --> 0:05:16.680 for their consumers. 0:05:17.160 --> 0:05:18.840 Instead, I had watched. 0:05:18.640 --> 0:05:21.120 It on YouTube, right, So it created a huge opportunity 0:05:21.120 --> 0:05:25.080 for YouTube demonetize a huge event when Netflix didn't own 0:05:25.080 --> 0:05:27.680 the conversation, and if they had other tools and a 0:05:27.720 --> 0:05:30.479 product focused on shorts, they could have really owned the 0:05:30.640 --> 0:05:31.479 entire conversation. 0:05:31.600 --> 0:05:31.760 Right. 0:05:31.800 --> 0:05:34.599 So it's not just about Beyonce, it's the behind the 0:05:34.640 --> 0:05:38.240 scenes and most importantly, all the social engagement that happens 0:05:38.279 --> 0:05:41.320 around it. So I think that's a real opportunity for 0:05:41.400 --> 0:05:43.960 Netflix and all the streamers out there to be thinking 0:05:43.960 --> 0:05:46.760 about owning the conversation and making sure they're not just 0:05:46.800 --> 0:05:48.960 focused on long form. They need to have a short 0:05:49.000 --> 0:05:50.080 form content experience. 0:05:50.120 --> 0:05:51.360 It's social life, all right. 0:05:51.400 --> 0:05:53.360 Well, last question about the broader industry, and then we 0:05:53.360 --> 0:05:55.680 want to talk about your company. We mentioned about Disney 0:05:55.720 --> 0:05:58.479 and Fubo doing their deal. I just want to get 0:05:58.520 --> 0:06:00.560 your thoughts because you understand space. 0:06:00.720 --> 0:06:01.720 You worked at Disney. 0:06:01.960 --> 0:06:03.760 What skill set do you think that the Disney board 0:06:03.800 --> 0:06:06.839 is likely to prioritize in searching for its next leader? 0:06:07.560 --> 0:06:10.120 Oh my goodness, Well, if I had that level of insight, 0:06:11.120 --> 0:06:12.600 well what is the years I could have been. 0:06:12.520 --> 0:06:13.880 So what do you think of different butts? 0:06:13.880 --> 0:06:16.200 What do you think it's like this iconic media company. 0:06:16.200 --> 0:06:18.719 It's got great properties, and yet it's trying to figure out, 0:06:19.000 --> 0:06:20.919 you know, what its world is for the rest of 0:06:20.920 --> 0:06:23.239 the twenty first century and maybe beyond. 0:06:24.200 --> 0:06:26.839 Most certainly, well, I think at the end of the day, listen, 0:06:26.920 --> 0:06:28.640 I think you need somebody who has a vision of 0:06:28.680 --> 0:06:31.159 what twenty thirty looks like, twenty thirty five looks like 0:06:31.160 --> 0:06:33.919 from a consumer standpoint, and how technology is going to 0:06:33.920 --> 0:06:37.080 fundamentally change both the creative side of the industry and 0:06:37.120 --> 0:06:40.360 the distribution side of the industry. It is incredible when 0:06:40.400 --> 0:06:42.680 we look at the tools that are becoming available. 0:06:42.200 --> 0:06:43.919 To everyday users. 0:06:44.560 --> 0:06:46.680 When you look at the AI technology that can take 0:06:46.720 --> 0:06:49.600 texts into a video format and more in version one, 0:06:49.640 --> 0:06:51.919 in version two of that, imagine what that looks like 0:06:51.960 --> 0:06:56.160 in five years. That blending and that differentiation between premium 0:06:56.160 --> 0:07:00.240 content and UGC driven content is eroding very rapid and 0:07:00.279 --> 0:07:02.039 so you need to figure out ways to harness it, 0:07:02.279 --> 0:07:04.520 and you need a CEO that embraces that type of vision. 0:07:04.720 --> 0:07:07.039 All right, So let's talk about your world. Tell us 0:07:07.080 --> 0:07:09.240 about you know, your company. We did a little introduction. 0:07:09.279 --> 0:07:11.040 It sounds like you guys are at this great cross 0:07:11.080 --> 0:07:14.760 section when it comes to content and not just traditional providers. 0:07:14.760 --> 0:07:16.720 But you know, it's health, it's security, it's a lot 0:07:16.760 --> 0:07:19.080 of stuff going on. Tell us about your world. What 0:07:19.160 --> 0:07:21.080 is it that moves the financial need needle? 0:07:21.080 --> 0:07:21.960 Where's the growth? 0:07:22.480 --> 0:07:24.880 Certainly, so listen, this has been a We started the 0:07:24.880 --> 0:07:27.440 company five years ago, back in the early days of 0:07:28.400 --> 0:07:30.880 the of COVID, but we recognized that this was a 0:07:30.920 --> 0:07:34.200 moment where media companies were beginning to focus on consumers 0:07:34.240 --> 0:07:36.320 and streamers right and they built out their version one 0:07:36.360 --> 0:07:40.200 other platform. We're a media company, We're a technology company 0:07:40.240 --> 0:07:43.440 focus on chier one Media who's looking to build out 0:07:43.760 --> 0:07:47.880 streaming solutions that also can advance the overall consumer experience. 0:07:48.640 --> 0:07:51.440 So what we what you've seen is we support the 0:07:51.600 --> 0:07:54.080 likes of Yankee Sports Network, Madison Square Garden and their 0:07:54.120 --> 0:07:58.440 joint venture. We support ah Media on and Media Group 0:07:58.720 --> 0:08:02.240 and delivering that overall consumer experience. What we're advancing in 0:08:02.240 --> 0:08:04.680 our conversation here at CEES is how do we begin 0:08:04.760 --> 0:08:08.080 to really think about leveraging first AI tools to help 0:08:09.080 --> 0:08:13.320 companies develop shorts content, To leverage AI tools that can 0:08:13.360 --> 0:08:17.320 take live and VOD content, convert it into shorts and 0:08:17.360 --> 0:08:20.640 then verticalize that to publish that into a syndicated or 0:08:20.680 --> 0:08:25.239 owned app experience, and second to help them advance that. 0:08:25.360 --> 0:08:27.400 Social like experience. We were just talking about that. 0:08:27.640 --> 0:08:29.640 How do you build a destination where you can have 0:08:29.680 --> 0:08:33.480 an infinite scroll, interact with the content with legs, commons, 0:08:33.480 --> 0:08:36.360 emojis to be able to share that into other platforms, 0:08:36.360 --> 0:08:39.320 So the basis of the conversation starts on owned platform. 0:08:39.480 --> 0:08:41.600 Those are the types of experiences we're hoping to. 0:08:41.600 --> 0:08:45.520 Advance within the media industry and really help shape the 0:08:45.559 --> 0:08:50.680 opportunity for these streamers around new ad units, around driving promotion, 0:08:50.760 --> 0:08:54.679 around their long form engagement, driving promotion around their subscriptions, 0:08:55.040 --> 0:08:59.640 and fundamentally creating this virtual cycle of consumers leveraging and 0:09:00.200 --> 0:09:03.560 using their app on a daily basis, which really becomes 0:09:03.559 --> 0:09:07.240 the foundation for gaining mind share and time spent with consumers. 0:09:07.320 --> 0:09:09.200 So it sounds like you're making a bet that these 0:09:09.200 --> 0:09:11.880 companies that are your clients can actually build the audience 0:09:11.920 --> 0:09:15.400 within apps and then get consumers and get viewers and 0:09:15.480 --> 0:09:19.800 audience to engage there and not just on the tiktoks, 0:09:19.840 --> 0:09:21.880 the instagrams and the youtubes. Is that correct, because that 0:09:21.880 --> 0:09:23.079 seems like a really tall task. 0:09:23.920 --> 0:09:27.480 That's that's right, Well, if you think about the IP 0:09:27.640 --> 0:09:30.040 that they have. So I'm saying, why don't you start 0:09:30.240 --> 0:09:33.080 with the destination that's built around your IP right and 0:09:33.160 --> 0:09:36.120 own the conversation. This is a very traditional way of 0:09:36.160 --> 0:09:39.080 looking at media in some respects. We've always had windowing 0:09:39.080 --> 0:09:41.960 strategies where content would start on one platform, then migrate 0:09:41.960 --> 0:09:44.760 to another, then migrate to another. Today you could take 0:09:45.840 --> 0:09:50.760 content from live premieres from a VOD where you can 0:09:50.800 --> 0:09:52.920 say this is exclusive to our platform. We're going to 0:09:53.000 --> 0:09:55.520 hold it for a window, maybe it's fifteen minutes. Start 0:09:55.559 --> 0:09:58.280 the conversation on my platform. Then I'll allow for it 0:09:58.320 --> 0:10:01.520 to be shared onto other platforms. But its foundation starts 0:10:01.520 --> 0:10:03.680 with yours. And if you can find a way to 0:10:03.679 --> 0:10:05.960 get the consumer to open up your app on a 0:10:06.000 --> 0:10:09.560 more frequent basis right and reach a new audience like 0:10:09.600 --> 0:10:12.120 a gen Z audience, then you can win the attention game. 0:10:12.200 --> 0:10:13.760 Paul, how do you support it financially? 0:10:13.800 --> 0:10:16.200 Because that sounds like a lot of people competing for 0:10:16.920 --> 0:10:19.400 eyeballs and hits and so on and so forth, but 0:10:19.480 --> 0:10:23.600 also the traditional advertising model also competing for all of that, 0:10:23.679 --> 0:10:24.679 So how do you support it? 0:10:25.320 --> 0:10:27.880 Certainly, so one is I should say the quick play 0:10:27.880 --> 0:10:31.080 does release research working with gen Z Insights that showcase 0:10:31.120 --> 0:10:33.600 that gen Z consumer said they would go and visit 0:10:33.640 --> 0:10:36.880 their streamer more frequently seventy nine percent they would visit 0:10:36.960 --> 0:10:40.320 it more frequently if they offered a compelling shorts offering. 0:10:40.640 --> 0:10:42.160 And what they told us is what they're looking to 0:10:42.200 --> 0:10:46.280 see is reality programming, original content, highlights and clips from 0:10:46.320 --> 0:10:48.960 their favorite shows and their sports events. So there's a 0:10:49.000 --> 0:10:52.520 really clear defined opportunity for the media companies themselves. Then 0:10:52.559 --> 0:10:55.440 in terms of monetization, right now, you're thinking about adding 0:10:55.440 --> 0:10:58.800 ad units into your short form experience and then promoting 0:10:58.840 --> 0:11:01.280 to that long form content experience where you can similarly 0:11:01.600 --> 0:11:04.800 monetize through ads. If you look at the subscription ads 0:11:04.800 --> 0:11:07.840 over the last last quarter coming off of the latest 0:11:07.880 --> 0:11:11.320 Antenna research, the majority of subscription ads are coming through 0:11:11.480 --> 0:11:14.920 AD defined subscription plans. So this tells you there's a 0:11:15.000 --> 0:11:17.880 huge opportunity sitting in the monetization space of relative to ads. 0:11:18.440 --> 0:11:20.240 So tiered right, so you're can be able to pay 0:11:20.280 --> 0:11:21.959 for something so you don't maybe get those ads or 0:11:22.000 --> 0:11:22.720 something right. 0:11:23.520 --> 0:11:26.440 Well, everybody always wants the excuse of the ability to 0:11:26.480 --> 0:11:28.800 opt out. I would say that I look at shorts 0:11:28.800 --> 0:11:30.080 though as a way to think about it as a 0:11:30.120 --> 0:11:33.400 front porch. You make that available to all consumers, and 0:11:33.440 --> 0:11:37.040 then behind that experience, in your long form traditional streaming experience, 0:11:37.200 --> 0:11:39.320 you offer the opportunity to have no ads. 0:11:39.559 --> 0:11:41.800 Well, where does AI come into this. Does it come 0:11:41.840 --> 0:11:43.800 into this in the sense of it makes it very 0:11:43.840 --> 0:11:46.560 easy to actually clip and share something or does it 0:11:46.600 --> 0:11:49.120 go beyond that? And is there a way for AI 0:11:49.200 --> 0:11:54.199 to identify that moment that will go viral because editorially 0:11:54.559 --> 0:11:57.439 people do that. People have to understand what really resonates 0:11:57.559 --> 0:11:58.320 with the audience. 0:12:00.160 --> 0:12:01.120 This is a great question. 0:12:01.240 --> 0:12:03.040 So if you think if we break apart at the 0:12:03.040 --> 0:12:05.600 shorts opportunity and two component parts, I'll tell. 0:12:05.440 --> 0:12:06.600 You about the application of AI. 0:12:06.960 --> 0:12:08.560 The first part is how do you take a piece 0:12:08.600 --> 0:12:12.040 of long form content or a live experience and say 0:12:12.080 --> 0:12:13.520 what are the viral moments? 0:12:13.559 --> 0:12:13.719 Right? 0:12:13.720 --> 0:12:15.600 And you can actually marry that with what's going on 0:12:15.640 --> 0:12:18.920 with Google trends to actually take the piece of asset 0:12:19.120 --> 0:12:23.439 leverage AI, pend the metadata to it, and then say, actually. 0:12:23.320 --> 0:12:25.640 This matches a trending moment on Google. 0:12:25.880 --> 0:12:28.640 Let's publish in the short form vertical format into an 0:12:28.679 --> 0:12:30.040 owned or syndicated experience. 0:12:30.280 --> 0:12:31.800 So that's all AI driven. 0:12:32.280 --> 0:12:35.559 The second piece within that consumer experience that you may 0:12:35.559 --> 0:12:39.000 have as a destination sitting with within your app. We're 0:12:39.080 --> 0:12:42.320 leveraging personalization, right, that's all AI driven, right, which is 0:12:42.320 --> 0:12:45.720 to understand what are your consumer likes and dislikes, what 0:12:45.760 --> 0:12:47.559 do you engage with, how much time do you spend 0:12:47.559 --> 0:12:49.600 with it, and leveraging that to make it a more 0:12:49.600 --> 0:12:52.200 compelling experience for you every single team time you log in, 0:12:52.679 --> 0:12:56.360 and of course then apply to that as all the 0:12:56.400 --> 0:12:58.600 AD opportunity that sits within that, right, because now we 0:12:58.640 --> 0:13:01.160 can also do contextual advertising because when you know what 0:13:01.240 --> 0:13:04.160 the content is along with the personalization, so you're getting 0:13:04.160 --> 0:13:08.280 a double hit on AI within the ad delivery component. 0:13:08.400 --> 0:13:11.840 So really AI can be applied applied across the entire spectrum. 0:13:11.840 --> 0:13:14.240 Cool stuff, Cool stuff, Come back soon. Love to get 0:13:14.280 --> 0:13:16.920 an update as things move along through twenty twenty five. 0:13:16.920 --> 0:13:19.840 Paul Pastor, here's CEO of quick Play joining us there 0:13:19.880 --> 0:13:21.559 from cees in Las Vegas. 0:13:23.080 --> 0:13:26.760 You're listening to the Bloomberg Business Week podcast. Catch us 0:13:26.840 --> 0:13:29.840 live weekday afternoons from two to five eas during Listen 0:13:29.880 --> 0:13:33.440 on Applecarplay and Android Atto with the Bloomberg Business app, 0:13:33.640 --> 0:13:35.959 or watch us live on YouTube. 0:13:36.679 --> 0:13:38.880 Our Live blogout with the latest too dead a high 0:13:38.920 --> 0:13:42.199 number of significant injuries from the fires as they firefighters 0:13:42.200 --> 0:13:46.120 struggle to contain blazes in Pacific Palace Stades in Pasadena, Carol. 0:13:46.160 --> 0:13:48.439 More than twenty three thousand acres have burned in twenty 0:13:48.440 --> 0:13:51.880 four hours. Utilities have cut power to thousands of homes 0:13:51.880 --> 0:13:54.839 and businesses. My brother's out there in South Pasadena. 0:13:54.880 --> 0:13:55.440 How's he doing. 0:13:55.640 --> 0:13:57.599 He's getting out of there, waiting for his girlfriend to 0:13:57.600 --> 0:13:59.000 get off of work. I think they're going to head 0:13:59.040 --> 0:14:01.040 up to the Central Coast to see my parents. But 0:14:01.120 --> 0:14:02.800 he's been without power since yesterday. 0:14:04.080 --> 0:14:06.000 You know, I feel like we're all kind of messaging 0:14:06.040 --> 0:14:07.760 everybody out on the West Coast. I mean, it's real, 0:14:07.760 --> 0:14:09.840 and like you just have a matter of time to 0:14:09.960 --> 0:14:11.640 like kind of leave your homes and so on and 0:14:11.640 --> 0:14:13.880 so forth. In something that we're continuing to track because 0:14:13.880 --> 0:14:17.599 this fire is expected to continue for at least a 0:14:17.640 --> 0:14:19.520 couple of days for the latest, and we've been trying 0:14:19.560 --> 0:14:21.480 to track it in real time and to really help 0:14:21.560 --> 0:14:24.160 us understand the connection between whether and climate and the 0:14:24.240 --> 0:14:27.280 insurance story, which is yep, we're a business organization and 0:14:27.320 --> 0:14:29.400 that is an aspect of it. No doubt about it. 0:14:29.800 --> 0:14:32.280 We're joined by a great roundtable. Mark Onngloff is editor 0:14:32.320 --> 0:14:35.120 of Bloomberg Opinion. He covers climate change for US and 0:14:35.200 --> 0:14:37.560 also back with us as David Baker. He's Bloomberg News 0:14:37.720 --> 0:14:40.600 Energy and Climate reporter Marcus in New York. David is 0:14:40.600 --> 0:14:42.480 in San Francisco. David, let's go back out to the 0:14:42.480 --> 0:14:45.080 West coast. You've been keeping us up to speed on 0:14:45.120 --> 0:14:47.280 what's been going on. What's the latest at this hour 0:14:47.360 --> 0:14:48.240 that you are hearing? 0:14:49.520 --> 0:14:52.520 Well, none of it is good. The fires are still 0:14:52.680 --> 0:14:56.120 utterly out of control most of them. The two biggest 0:14:56.120 --> 0:14:59.440 ones keep growing. We keep getting updates from cal Fire. 0:15:00.360 --> 0:15:03.840 The Palisades fire is now above eleven thousand acres. The 0:15:04.000 --> 0:15:06.920 Eden fire above Pasadena is now above ten thousand. And 0:15:06.960 --> 0:15:10.880 they're not just burning through woodlands or grassy hillsides. They're 0:15:10.880 --> 0:15:14.440 burning through actual neighborhoods, both of them. We have more 0:15:14.600 --> 0:15:18.280 than one hundred and twenty thousand people evacuated. They are 0:15:18.360 --> 0:15:21.880 filling into hotels, they're calling up friends and family trying 0:15:21.880 --> 0:15:24.960 to find a place to stay, and it is starting 0:15:24.960 --> 0:15:28.160 to really paralyze life in our second largest city. 0:15:28.600 --> 0:15:30.320 We just want to mention for those who are watching 0:15:30.400 --> 0:15:32.560 right now on YouTube and of course on our Bloomberg 0:15:32.720 --> 0:15:35.240 Original streaming channel that what you are seeing right now 0:15:35.320 --> 0:15:38.480 is a live shot of the fire. So we're not 0:15:38.560 --> 0:15:42.640 quite exactly sure of the location here, but obviously within 0:15:42.680 --> 0:15:46.200 the area that we've been talking the Pacific Palisades, Pasadena, 0:15:46.360 --> 0:15:48.600 those general areas, but that's what we're seeing right now. 0:15:48.680 --> 0:15:50.680 David. I'm racking my brain here trying to come up 0:15:50.680 --> 0:15:55.240 with a recent historical corollary to this historical precedent to 0:15:55.440 --> 0:15:58.800 the scale of this evacuation and how many people in 0:15:58.920 --> 0:16:01.640 structures and homes are at risk here, and I can't 0:16:01.640 --> 0:16:04.680 do it. Is this unprecedented or do we have historical 0:16:04.720 --> 0:16:08.280 examples of when fires have threatened and in the devastated 0:16:08.280 --> 0:16:09.600 areas such as this in the past. 0:16:10.400 --> 0:16:12.400 It's funny you say that, because I was having this 0:16:12.480 --> 0:16:15.880 conversation with a net or a few minutes ago, and honestly, 0:16:15.960 --> 0:16:18.000 I think the closest thing that you can compare this 0:16:18.080 --> 0:16:21.200 to is the nineteen ninety four north Ridge earthquake in 0:16:21.320 --> 0:16:23.920 La I thought, I mean, in terms of a natural 0:16:23.960 --> 0:16:29.040 disaster of this scope affecting so many people, that's probably it. California. 0:16:29.120 --> 0:16:33.600 We've endured so many bad wildfires in the last decade, 0:16:34.280 --> 0:16:38.160 but most of them have been in rural areas, not 0:16:38.560 --> 0:16:41.280 in a major city like this, And yeah, this is 0:16:41.280 --> 0:16:41.960 something different. 0:16:42.440 --> 0:16:43.760 Mark Gong Gleff, I want to bring you in. 0:16:43.920 --> 0:16:45.880 I've been watching your face on the monitor and you're 0:16:45.880 --> 0:16:46.880 shaking your head here. 0:16:47.600 --> 0:16:49.720 You know, I feel like you and you meet Tim. 0:16:49.760 --> 0:16:52.360 We have these conversations of just when we think it 0:16:52.360 --> 0:16:54.760 can't get any worse, it certainly feels like it can. 0:16:56.120 --> 0:16:59.280 Yeah, it's really grim. And when we were talking about 0:16:59.320 --> 0:17:00.960 things that are in present, you know, one of the 0:17:01.000 --> 0:17:04.160 things you made. One of the scary things about these 0:17:04.240 --> 0:17:07.840 fires is that they didn't exist Tuesday morning, like thirty 0:17:07.880 --> 0:17:10.040 six hours ago. They didn't exist. All we had was 0:17:11.119 --> 0:17:13.399 a warning from the Weather Service that there were going 0:17:13.440 --> 0:17:17.400 to be strong Santa Anna wins maybe the strongest ever, 0:17:17.640 --> 0:17:19.760 the strongest since at least twenty eleven when there were 0:17:19.800 --> 0:17:23.520 some really devastating ones, and they warned that there was 0:17:23.560 --> 0:17:25.680 an extreme risk of wildfire. And this is the first 0:17:25.720 --> 0:17:27.720 time that the National Weather Service has ever warned of 0:17:27.720 --> 0:17:31.240 an extreme wildfire risk in the lower forty eight states 0:17:31.280 --> 0:17:34.560 in January ever, And so right away you got this sense, well, 0:17:34.640 --> 0:17:36.720 this could be really bad. And you know, we hoped 0:17:36.760 --> 0:17:38.919 that it wouldn't be, but it has turned out to 0:17:38.960 --> 0:17:41.480 be as bad, if not worse, than we expected. 0:17:42.800 --> 0:17:45.280 Santa Ana Wins mark nothing new, as you write in 0:17:45.320 --> 0:17:48.000 your piece, what's unique about this moment in history, the 0:17:48.040 --> 0:17:50.960 development of this area and what's been happening in the 0:17:50.960 --> 0:17:53.880 broader climate over the last three decades or so that 0:17:54.000 --> 0:17:55.600 create this really combustible mix. 0:17:56.560 --> 0:17:59.240 Yeah, it's a toxic mix, as you say, Santa Ana 0:17:59.320 --> 0:18:03.399 wins wildfires, those have been part of California life forever. 0:18:04.359 --> 0:18:08.480 The difference now is that climate change has made a 0:18:08.520 --> 0:18:11.200 lot of factors much worse. So you get a lot 0:18:11.200 --> 0:18:16.200 of rain and snow and during those seasons, and that 0:18:16.560 --> 0:18:18.520 is great. It produces a lot of you get a 0:18:18.520 --> 0:18:20.440 lot of water, but it produces a lot of plants. 0:18:20.680 --> 0:18:22.919 And then during the summer and fall seasons when you 0:18:22.920 --> 0:18:26.600 don't you're not having any rain, the air is hotter, 0:18:26.800 --> 0:18:29.480 the air is drier. All these plants that grew during 0:18:29.520 --> 0:18:33.160 the spring are drying out and providing kindling for these fires. 0:18:33.560 --> 0:18:38.159 The air is drier, which makes it more combustible. The 0:18:38.240 --> 0:18:41.160 other big problem here is that we have built millions 0:18:41.160 --> 0:18:45.119 of homes in the wild and urban interface where maybe 0:18:45.359 --> 0:18:48.240 you know, wildfires used to just burn and only affect 0:18:48.240 --> 0:18:52.720 plants and trees. Now the houses themselves are serving as 0:18:52.800 --> 0:18:55.760 kindling for these fires. And so you have these fires 0:18:55.760 --> 0:18:59.040 that are that are hotter than usual, moving faster than usual, 0:18:59.320 --> 0:19:02.280 and they're jumping to houses which are burning and then 0:19:02.800 --> 0:19:05.560 creating their own kindling to spread the fires even faster. 0:19:05.720 --> 0:19:07.160