WEBVTT - Juul Settles and YouTube Reins Over the Creator Economy 0:00:02.240 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:29.000 Emily Jay and this is Bloomberg Technology coming up in 0:00:29.000 --> 0:00:31.720 the next hour. Jewel ordered to pay almost four hundred 0:00:31.840 --> 0:00:34.760 forty million dollars to settle a probe over the e 0:00:34.880 --> 0:00:39.080 cigarette makers marketing to teens, but the company still faces 0:00:39.159 --> 0:00:43.120 hundreds of lawsuits plus the rise of the creator economy. 0:00:43.120 --> 0:00:45.720 We're gonna take a deep dive into this booming industry 0:00:45.960 --> 0:00:49.800 and how YouTube in particular reign supreme as platform of choice, 0:00:50.040 --> 0:00:54.920 but TikTok is catching up and it's back. The NFL 0:00:54.960 --> 0:00:57.720 season starts this Thursday, which means more sports betting on 0:00:57.760 --> 0:01:01.000 sites like Draft Kings. Our conversation issue with CEO Jason 0:01:01.080 --> 0:01:03.720 Robbins on what to expect as we kick off this 0:01:03.800 --> 0:01:07.520 week's sports tech series. Meantime, Jewel Labs, as ed said, 0:01:07.640 --> 0:01:11.720 agreeing to pay four thirty eight point five million dollars 0:01:11.720 --> 0:01:15.360 to thirty three states. This resolves a two year bipartisan 0:01:15.400 --> 0:01:19.320 pro into the East Grant Makers manufacturing and sales practices 0:01:19.360 --> 0:01:23.360 the States, claiming that it marketed addictive nicotine products to children. 0:01:23.520 --> 0:01:26.560 Bloom Works Eric Larson joining us now to discuss, So 0:01:26.720 --> 0:01:30.800 Eric tell us how significant this settlement is today. It's 0:01:30.800 --> 0:01:33.800 a very significant settlement. It's certainly the largest that Jewel 0:01:33.880 --> 0:01:37.280 has had to pay to date involving any individual states. 0:01:37.280 --> 0:01:39.800 You know, in the last year or so, the company 0:01:39.840 --> 0:01:43.039 had settled a few state lawsuits by Washington State in 0:01:43.080 --> 0:01:47.279 North Carolina and really had all this huge investigation hanging 0:01:47.319 --> 0:01:51.320 over it in the meantime, So clearly they decided to 0:01:51.360 --> 0:01:54.360 be done with this particular risk. Although clearly there's a 0:01:54.360 --> 0:01:56.800 lot of lawsuits still pending out there, but this definitely 0:01:56.800 --> 0:01:59.680 does away with a lot of the lawsuits that could 0:01:59.720 --> 0:02:04.800 have been filed by these thirty three states and Puerto Rico. So, 0:02:05.280 --> 0:02:07.760 you know, how much does this resolve these, you know, 0:02:07.880 --> 0:02:12.080 hundreds of other lawsuits essentially, how much of Jewels legal 0:02:12.120 --> 0:02:15.400 troubles go away as a result of this. Well, it 0:02:15.520 --> 0:02:18.560 definitely significant that these states have settled, but there are 0:02:18.560 --> 0:02:22.240 still over two thousand, five hundred civil lawsuits like personal 0:02:22.280 --> 0:02:26.000 injury lawsuits that have been filed by individuals, and also 0:02:26.240 --> 0:02:30.120 dozens of cases filed by state governments and school districts. 0:02:30.320 --> 0:02:33.480 In fact, in November, the San Francisco School District we'll 0:02:33.480 --> 0:02:35.880 go to trial in the first of these cases to 0:02:35.919 --> 0:02:38.400 go to trial, which could really show the potential for 0:02:38.480 --> 0:02:41.800 how jury might react to the evidence once it is presented. 0:02:42.320 --> 0:02:44.959 Uh So, that's another one that potentially we could see 0:02:44.960 --> 0:02:47.519 a settlement before it hits trial. But there are over 0:02:49.080 --> 0:02:52.000 suits out there, plus several states that are including New 0:02:52.080 --> 0:02:55.040 York and California by the way, which normally are you know, 0:02:55.080 --> 0:02:59.000 have the potential for big settlements or damages. They have 0:02:59.080 --> 0:03:01.920 lawsuits penning again Stool that are still pending. All right, 0:03:02.120 --> 0:03:04.960 Bloom Exeric Laws and thank you for that update. Will 0:03:04.960 --> 0:03:16.160 continue to watch how those civil suits evolved. Let's take 0:03:16.160 --> 0:03:19.840 a pulse of the VC market and declining market conditions 0:03:19.840 --> 0:03:22.359 as fears continue about a hawk ish FED, and talk 0:03:22.400 --> 0:03:26.200 about what is the future of venture capital after the 0:03:26.240 --> 0:03:29.720 growth at all costs mantra of the last couple of years. 0:03:29.720 --> 0:03:32.040 I want to get to Sheila Patel get her insight 0:03:32.120 --> 0:03:34.440 on this. She's the vice chair and general partner at 0:03:34.440 --> 0:03:37.920 the Capital Group. Sheila, thank you so much for joining us. So, Karius, 0:03:38.000 --> 0:03:40.080 just what is your reaction of, you know, to a 0:03:40.120 --> 0:03:45.160 continuing hawkers fed. Obviously we're getting mixed economic data. Uh, 0:03:45.200 --> 0:03:47.680 you know, some that looks better than others. But what 0:03:47.720 --> 0:03:53.080 does this mean for your world and you're investing investing strategy. Look, 0:03:53.120 --> 0:03:56.480 I think venture capital has been in an amazing run 0:03:56.560 --> 0:03:59.320 for the last decade, and it was inevitable that we'd 0:03:59.360 --> 0:04:02.720 come to more difficult time. Uh. That said, looking at 0:04:02.760 --> 0:04:06.240 the environment we're in today, looking at everything you mentioned 0:04:06.240 --> 0:04:09.600 that fed the geopolitical environment, I actually think it's a 0:04:09.600 --> 0:04:11.960 great time, just as it's been in the past when 0:04:11.960 --> 0:04:15.200 you've gone through vintages or cycles that are difficult in 0:04:15.280 --> 0:04:18.600 private equity in other segments of the market. To really 0:04:18.600 --> 0:04:22.040 look at BC today and the technological innovations that are 0:04:22.120 --> 0:04:27.279 driving uh, future innovation and really future productivity. So to 0:04:27.400 --> 0:04:31.440 my mind, the pullback is actually necessary and a good 0:04:31.480 --> 0:04:34.359 thing for shaking out where we need to be in BC. 0:04:35.960 --> 0:04:38.480 So where are we in VC? Talk to us about 0:04:38.480 --> 0:04:41.440 trends are seeing in the private markets? Are valuations still 0:04:41.520 --> 0:04:46.840 too high? Are there more valuations that are gonna come down? Look, 0:04:46.839 --> 0:04:49.920 I think as you're seeing in the latest rounds UM, 0:04:50.000 --> 0:04:53.279 you're seeing founders realizing they need to do larger deals, 0:04:53.360 --> 0:04:57.840 more capital at reasonable valuations. People need cash runaway. That's 0:04:57.880 --> 0:05:00.880 to be expected. Uh, it's also is able to expect 0:05:00.920 --> 0:05:03.159 we'll start to see an increasing amount of M and A. 0:05:03.720 --> 0:05:06.200 And I think many of the reports we're seeing, whether 0:05:06.240 --> 0:05:10.400 from City Group or works UH that are friends are 0:05:10.480 --> 0:05:13.080 at BCG with whom we have a strategic partnership have 0:05:13.240 --> 0:05:15.680 done UH suggests that you'll see more M and A, 0:05:15.800 --> 0:05:19.320 particularly in the software UH space, and particularly in the 0:05:19.320 --> 0:05:21.960 areas like the back office. So I do think there's 0:05:22.120 --> 0:05:24.800 room for some valuations to move, but I also think 0:05:24.800 --> 0:05:27.960 there's room for some incredible innovation to come, even in 0:05:28.040 --> 0:05:30.400 areas that have seen the most difficult you know. I 0:05:30.440 --> 0:05:32.760 think crypto is a great example of that, where there 0:05:32.839 --> 0:05:36.919 is an interesting future ahead after this latest downturn. The 0:05:37.000 --> 0:05:39.160 question is just how long is this downturn gonna last. 0:05:39.160 --> 0:05:40.680 I mean, we've had guests on the show who are 0:05:40.720 --> 0:05:44.080 predicting millions of layoffs in tech and that this is 0:05:44.080 --> 0:05:46.719 gonna last two to three years. Does that drive with 0:05:46.760 --> 0:05:51.120 your thinking? Look, I think that's entirely possible. I'm probably 0:05:51.120 --> 0:05:54.640 a bit more optimistic than that, mainly because I see 0:05:54.680 --> 0:05:57.719 some positive trends UH in what's going on as well. 0:05:57.960 --> 0:06:02.000 For example, a recent serve very done by City suggested 0:06:02.040 --> 0:06:05.000 that CFOs and c h R o s. So in 0:06:05.040 --> 0:06:08.719 the financial space and the HR space within corporate aren't 0:06:08.720 --> 0:06:11.400 pulling back on areas like software spending. A lot of 0:06:11.400 --> 0:06:14.279 what we focus on it be capital or core areas 0:06:14.320 --> 0:06:19.479 like enterprise, and these are areas where companies can find efficiencies. 0:06:19.760 --> 0:06:23.840 At the same time they're going through more difficult economic circumstances. 0:06:24.040 --> 0:06:28.240 So in many cases, for certain segments within technology, recessionary 0:06:28.320 --> 0:06:31.080 environment or at least even a difficult environment is not 0:06:31.200 --> 0:06:36.520 necessarily the worst environment to the business. Meantime, you're investing 0:06:36.520 --> 0:06:39.479 in companies that are, you know, taking on big tech, 0:06:39.480 --> 0:06:42.240 are trying to challenge big tech do things better than 0:06:42.320 --> 0:06:45.679 big tech companies do. We've been following this big piece 0:06:45.680 --> 0:06:48.520 of legislation that's been working its way through Congress to 0:06:48.600 --> 0:06:51.679 rain in big tech, but that's a chance it won't 0:06:51.720 --> 0:06:54.640 make it before the mid terms. What do you think 0:06:54.680 --> 0:06:57.120 the impact of this legislation could be and what's the 0:06:57.160 --> 0:07:00.719 impact if it doesn't happen before November ace. Look, I 0:07:00.760 --> 0:07:04.480 think around the world, the technology industry has proven itself 0:07:04.520 --> 0:07:07.320 to be incredibly adaptable, and this is not the first 0:07:07.360 --> 0:07:10.720 time or the first region or country to take on 0:07:10.880 --> 0:07:13.760 issues within big tech. We've actually seen it where I 0:07:13.840 --> 0:07:17.640 lived for many years UH in Europe, and you've seen 0:07:17.880 --> 0:07:20.800 UH the tech industry continue to adapt, and I think 0:07:20.840 --> 0:07:24.000 many within the tech industry are eager to adapt right. 0:07:24.160 --> 0:07:27.800 Technology sometimes moves faster than human capacity to handle it. 0:07:28.440 --> 0:07:32.520 So to my mind, UM, whether the regulation happens before 0:07:32.680 --> 0:07:35.760 or after the midterms, some amount of regulation to big 0:07:35.760 --> 0:07:39.000 tech is coming, and I think everyone's accepted that everybody's 0:07:39.040 --> 0:07:42.320 ready for that. The real issue is UM making sure 0:07:42.360 --> 0:07:45.840 that it's addressing the right things and really solving the 0:07:45.920 --> 0:07:50.080 right problems that people have concerns with. So what's your 0:07:50.080 --> 0:07:53.720 advice to your portfolio companies right now? You know, potentially 0:07:54.120 --> 0:07:58.080 or in a prolonged economic downturn, there's a lot of uncertainty. 0:07:58.440 --> 0:08:00.760 I had. You know, we're moving of an era where 0:08:00.760 --> 0:08:03.920 there was you know, a lots of money flooding in. 0:08:04.040 --> 0:08:07.320 But now you know, investors want to see real numbers. 0:08:09.080 --> 0:08:11.680 Oh look, I think I think, UM, it's a real 0:08:11.800 --> 0:08:13.760 chance to go back to their knitting. And I think 0:08:13.760 --> 0:08:16.640 this is where you really see UH, particularly as we 0:08:16.680 --> 0:08:20.280 look at portfolio companies, the best in the management side 0:08:20.400 --> 0:08:23.640 come to the four founders that think about things for 0:08:23.680 --> 0:08:26.960 the long term, founders that have a sense of their 0:08:27.040 --> 0:08:30.600 use of cash, their burn rates um and really maintaining 0:08:30.640 --> 0:08:33.479 their runaway but also have a sense of the competition 0:08:33.800 --> 0:08:36.840 and realize that they're in a moment right now or 0:08:36.880 --> 0:08:39.840 some of the competitors are facing more difficult times. They 0:08:39.880 --> 0:08:42.840 need to be aggressive. They need to think about ways 0:08:43.120 --> 0:08:47.839 to push themselves, their business, their product schoolward as solutions 0:08:47.840 --> 0:08:50.800 in a difficult environment. And I think you see many 0:08:50.840 --> 0:08:54.480 of the best founders and innovators able to put that 0:08:54.600 --> 0:08:57.679 hat on. Put the hat on that says my idea 0:08:57.760 --> 0:09:00.079 is the best idea I've put it together, is is 0:09:00.080 --> 0:09:03.280 one my competition is showing the signs of weakness or 0:09:03.320 --> 0:09:06.520 the challenges of the way they've managed their business. And 0:09:06.559 --> 0:09:10.319 so this is when it's my time to shine. So 0:09:10.400 --> 0:09:12.400 where are you placing your bets in terms of where 0:09:12.400 --> 0:09:16.880 you think we're gonna be this time next year. I 0:09:16.880 --> 0:09:20.200 think this time next year hopefully, uh, we look at 0:09:20.200 --> 0:09:22.240 it as a more stable time. I think what we've 0:09:22.280 --> 0:09:27.120 said repeatedly from our perspective is we invest over many boarders. 0:09:27.240 --> 0:09:29.959 We we don't raise a fun and think let's all 0:09:30.040 --> 0:09:31.840 get it put to work right away. So I think 0:09:31.840 --> 0:09:34.599 you'll still see us slow and steady investing in a 0:09:34.679 --> 0:09:37.520 year from now. I think what we've very focused again 0:09:37.920 --> 0:09:42.200 on the areas where we see opportunities, so enterprise UM. 0:09:42.400 --> 0:09:45.559 Thinking about the evolution of crypto. My colleagues Matt Levinson 0:09:45.640 --> 0:09:49.000 and Ryan Savelle just wrote a great piece UM about 0:09:49.000 --> 0:09:52.240 where does crypto go from here and where crypto and 0:09:52.400 --> 0:09:57.080 fintech merge. And to this moment, most of what's gone 0:09:57.120 --> 0:10:00.360 on in crypto has really been driven in many cases 0:10:00.480 --> 0:10:03.559 vice speculators. But where do the real world applications come 0:10:03.600 --> 0:10:05.720 in as you think about emerging markets, as you think 0:10:05.720 --> 0:10:09.280 about removing middleman, which you've already seen blockchain do in 0:10:09.280 --> 0:10:12.720 in a place as unlikely as India, in getting money 0:10:12.760 --> 0:10:15.320 to rural areas and so on. So I think we 0:10:15.520 --> 0:10:19.600 really still are thinking about where do the ideas of 0:10:20.040 --> 0:10:23.840 today that may not have been applied well get applied 0:10:23.880 --> 0:10:27.240 in real world situations tomorrow. You know, I'd take climate 0:10:27.280 --> 0:10:29.560 check is another curiate area for us that we see 0:10:29.559 --> 0:10:33.360 will be important of the next several years. All right, 0:10:33.440 --> 0:10:36.760 Sheila Patel b Capital Group Vice Chair and general partner. 0:10:36.800 --> 0:10:40.240 Thank you, Sheila for sharing your thoughts with us. Meantime, 0:10:40.280 --> 0:10:43.400 Theoronis founder Elizabeth Holmes claims a key witness in her 0:10:43.440 --> 0:10:48.000 criminal case visited her after the verdict and express remorse 0:10:48.320 --> 0:10:52.360 about his testimony. Homes alleges that a former Theories Lab 0:10:52.400 --> 0:10:55.439 director showed up at her home and said his testimony 0:10:55.480 --> 0:10:58.920 had been twisted by prosecutors. She's now asking for a 0:10:58.960 --> 0:11:02.959 new trial after they allegations. This just weeks before Holmes 0:11:03.080 --> 0:11:08.360 is scheduled to be sentenced. Coming up, the creator economy 0:11:08.640 --> 0:11:12.160 is booming. How this new industry is changing the face 0:11:12.400 --> 0:11:16.840 of entertainment and continuing to grow. We'll talk about that next. 0:11:17.080 --> 0:11:29.360 This is Bloomberg taking a deep dive now on the 0:11:29.440 --> 0:11:33.360 creator economy, which has experienced a massive boom over the 0:11:33.400 --> 0:11:37.600 last several years, along with a slew of platforms like Spotify, Instagram, 0:11:37.600 --> 0:11:40.880 and TikTok and the rule of them all of course YouTube. 0:11:41.160 --> 0:11:44.120 To give you an idea, every minute at least at 0:11:44.160 --> 0:11:48.000 least five hours of footage or uploading to YouTube. Let's 0:11:48.000 --> 0:11:51.280 break this all down with Roberto Blake, a content creator 0:11:51.280 --> 0:11:54.800 who also has his own coaching program that helps influencers 0:11:54.840 --> 0:11:57.760 build their online brands, and our very own Mark Bergen, 0:11:57.840 --> 0:12:00.679 who is out with a new book today called Light 0:12:00.720 --> 0:12:05.720 Comments Subscribe. Inside YouTube's chaotic rise to World Domination. You 0:12:05.760 --> 0:12:08.480 can buy it now. Mark and Roberto, thank you so 0:12:08.559 --> 0:12:10.800 much for joining us. Mark, I'm gonna start with you. 0:12:10.880 --> 0:12:12.440 Can you just start by giving us a sense of 0:12:12.520 --> 0:12:15.560 how big the creator economy is today and just how 0:12:15.640 --> 0:12:19.160 much it has grown on all of these different platforms 0:12:19.200 --> 0:12:21.920 over the last several years. Yeah, there are estimates out 0:12:21.960 --> 0:12:24.640 there that it's about a hundred billion, which is from 0:12:24.760 --> 0:12:29.800 zero to to to sixty within maybe the past fifteen years. Really, uh, 0:12:29.840 --> 0:12:31.600 and certainly in the past five years. I think that's 0:12:31.640 --> 0:12:34.800 just exploded as all these platforms have got involved. You 0:12:34.800 --> 0:12:38.040 know that that mind boggling stat about fifty hours uploaded. 0:12:38.200 --> 0:12:40.680 The other major stat is that there are now over 0:12:40.760 --> 0:12:43.600 two million craters in YouTube's partner program, which is actually 0:12:43.600 --> 0:12:46.600 a smaller number than it was before. If if people 0:12:46.640 --> 0:12:49.160 in the audience remember that YouTube actually cut that number 0:12:49.160 --> 0:12:52.120 and it's but they're on ten. But it's been gradually 0:12:52.120 --> 0:12:55.000 moving it up, and particularly as they're facing new competition 0:12:55.040 --> 0:12:59.880 from TikTok. Roberto, you're a graphic designer and a free 0:13:00.000 --> 0:13:04.120 in term before becoming a YouTube content creator. Why don't 0:13:04.120 --> 0:13:06.800 you make this big job change and give us a 0:13:06.800 --> 0:13:10.079 sense of a day in your life. I mean, that's 0:13:10.080 --> 0:13:13.080 a great question, Emily. For me, a lot of it 0:13:13.120 --> 0:13:15.840 comes down to the things that are obvious for people. 0:13:16.120 --> 0:13:18.000 Is you want more time freedom, You want to be 0:13:18.040 --> 0:13:20.480 able to talk about and do things you're very passionate about. 0:13:20.679 --> 0:13:22.520 You want to feel a sense of ownership over the 0:13:22.520 --> 0:13:25.560 things you're doing. So when you work in uh, you know, 0:13:25.640 --> 0:13:28.120 for other people, whether it's as a freelancer or if 0:13:28.160 --> 0:13:31.079 you work at an ad agency something I used to do, UH, 0:13:31.120 --> 0:13:33.920 it's great. It's very gratifying, it's very fulfilling, and it's 0:13:34.400 --> 0:13:37.520 very legitimate in the eyes of your relatives. But when 0:13:37.600 --> 0:13:39.080 you get to do something of your own and have 0:13:39.160 --> 0:13:41.440 complete ownership of it, get to build it with your 0:13:41.440 --> 0:13:44.439 own two hands, you feel directly supported by a community 0:13:44.480 --> 0:13:47.559 of like minding people. There's nothing like it, nothing in 0:13:47.600 --> 0:13:49.360 the world like it, And so I think that's what 0:13:49.360 --> 0:13:52.599 attracts a lot of people to the creator economy and 0:13:52.679 --> 0:13:57.280 opportunities like YouTube, podcasting and live streaming. Why are you 0:13:57.360 --> 0:14:02.920 focus on YouTube in particular and not tick to or Instagram. Well, 0:14:02.960 --> 0:14:06.160 I've been with YouTube almost since the very beginning, and 0:14:06.360 --> 0:14:08.680 YouTube is still the most powerful search engine in the 0:14:08.679 --> 0:14:11.840 world across all ages and all of demographics, and YouTube 0:14:11.880 --> 0:14:14.959 has a sense of permanence with its content. YouTube is 0:14:14.960 --> 0:14:18.640 also the best monetization opportunity for content creators, as over 0:14:18.760 --> 0:14:24.040 eight in platform monetization streams, I teach content creators UH 0:14:24.280 --> 0:14:29.479 roughly fifteen different ways they can monetize, primarily using YouTube specifically, 0:14:29.800 --> 0:14:33.280 but I also do understand and value other platforms have 0:14:33.320 --> 0:14:36.000 a presence in other platforms as well. But I feel 0:14:36.040 --> 0:14:39.800 that even with the rapid rise of TikTok, I feel 0:14:39.840 --> 0:14:43.840 that there's nothing like the permanence and longevity that YouTube 0:14:43.880 --> 0:14:47.960 content create content creation has, And if you talk to 0:14:48.880 --> 0:14:52.880 TikTokers on a regular basis, which I generally do, you'll 0:14:52.920 --> 0:14:54.640 find that a lot of them have the intention of 0:14:54.640 --> 0:14:58.120 pivoting and moving to YouTube at some point in their 0:14:58.120 --> 0:15:02.080 career because they do want a sense of stability and permanence, 0:15:02.400 --> 0:15:07.440 and they also want the potential for evergreen content to 0:15:07.640 --> 0:15:10.320 benefit them and be monetize able in the future. They 0:15:10.360 --> 0:15:13.080 know right now with the TikTok Creator Fund, that while 0:15:13.080 --> 0:15:15.440 they're getting something in exchange for their content, they know 0:15:15.520 --> 0:15:20.200 they're disproportionately underpaid for the attention when compared to traditional 0:15:20.240 --> 0:15:23.160 content on YouTube, as well as in the live streaming 0:15:23.200 --> 0:15:27.920 community and within YouTube live stream and podcasting, their air 0:15:28.200 --> 0:15:32.800 higher opportunities in terms of direct compensation when it comes 0:15:32.840 --> 0:15:35.840 to sponsored content and brand deals, and it's not even close. 0:15:36.240 --> 0:15:39.120 So so for me, that's probably one of the bigger deals, 0:15:41.000 --> 0:15:44.200 not even close. Uh is in one way to put 0:15:44.200 --> 0:15:46.440 it mark you know, we've talked so much about the 0:15:46.440 --> 0:15:50.120 threat of TikTok to YouTube, but to Rebner's point, it 0:15:50.200 --> 0:15:54.000 is a lot of disconnected content and it is less permanent. 0:15:54.040 --> 0:15:57.200 How big a threat is TikTok really in your view 0:15:57.200 --> 0:15:59.520 to YouTube and how is it How is YouTube addressing 0:15:59.800 --> 0:16:02.440 the threat internally? Yeah, I think it's a viable threat, 0:16:02.480 --> 0:16:05.560 and certainly more so than you know, Instagram, Facebook have 0:16:05.760 --> 0:16:08.520 tried multiple times to really build out a creator economy 0:16:08.520 --> 0:16:12.960 and thus far I failed. What TikTok and bite dnsiteds 0:16:13.000 --> 0:16:16.280 to do is to demonstrate, you know, Google has a 0:16:16.280 --> 0:16:19.720 remarkable system, as roberta pointed out book both for Search 0:16:20.200 --> 0:16:23.760 uh and for Modernization, in the world's biggest digital advertising company, 0:16:23.800 --> 0:16:27.120 and it's it's had this machinery in place for for years. 0:16:27.520 --> 0:16:31.080 TikTok clearly has a lot of political problems, um and 0:16:31.400 --> 0:16:34.040 they haven't really got a proven yet that they can 0:16:34.080 --> 0:16:36.960 be a threat to YouTube at at large scale. So 0:16:37.200 --> 0:16:40.040 YouTube's response so far is to is shorts. This is 0:16:40.080 --> 0:16:42.680 their their feature that's sort of short video. They're driving 0:16:42.720 --> 0:16:45.280 a lot of pushing a lot of viewers. They're encouraging 0:16:45.280 --> 0:16:47.480 creators to go there. They're about to flip the switch 0:16:47.880 --> 0:16:51.680 on modernization. You know, it's unclear how productive productive that 0:16:51.720 --> 0:16:53.520 will be for the company and how they're going to 0:16:53.600 --> 0:16:55.440 sort out modernization. But if there's a lot you know, 0:16:55.520 --> 0:16:57.760 if history shows is anything that is that YouTube has 0:16:57.800 --> 0:17:00.680 a pretty strong track record of sort this out, and 0:17:01.000 --> 0:17:04.000 I think responding to the to the threat from of 0:17:04.040 --> 0:17:08.280 TikTok in a really significant way. Reward are you're the 0:17:08.320 --> 0:17:11.640 founder of Awesome Creator Academy, which is a coaching program 0:17:11.680 --> 0:17:15.120 that helps influencers build their brands online. With some fun 0:17:15.200 --> 0:17:19.440 watching your videos earlier today, what trends are you saying? 0:17:19.480 --> 0:17:23.360 What are you telling creators today advice that that might 0:17:23.400 --> 0:17:28.359 not be obvious. I think the thing that's not obvious 0:17:28.400 --> 0:17:32.400 to most content creators is their potential, their overall potential 0:17:32.720 --> 0:17:34.680 when it comes to their earnings, and the fact that 0:17:34.720 --> 0:17:39.119 there is a compounding effect from their content over a 0:17:39.200 --> 0:17:41.720 period of time. So what a lot of creators don't 0:17:41.880 --> 0:17:46.160 do is they rely so much on platform modetization, whether 0:17:46.200 --> 0:17:48.880 it's TikTok and their creator fund or YouTube and their 0:17:48.920 --> 0:17:50.720 ad Sense partner program and things like that, that they 0:17:50.760 --> 0:17:55.040 don't explore other monetization opportunities, and they don't think of 0:17:55.200 --> 0:17:57.800 what they're doing as what I refer to as content 0:17:57.920 --> 0:18:00.679 as a service. So that's one thing it's not obvious 0:18:00.680 --> 0:18:04.200 to them is that it's very much almost like software 0:18:04.240 --> 0:18:05.960 as a service, which most of us are familiar with. 0:18:05.960 --> 0:18:09.000 We have these wonderful subscription programs everywhere now that we're 0:18:09.040 --> 0:18:12.680 all paying for well. Content creators have an opportunity to 0:18:12.800 --> 0:18:16.360 use content as a services leveraged not just with ad revenue, 0:18:16.560 --> 0:18:20.000 creator funds and sponsored content brand deals, but they can 0:18:20.040 --> 0:18:22.840 build their own communities around things like their one hundred 0:18:23.040 --> 0:18:26.479 or one thousand truest fans, and they could have monthly 0:18:26.520 --> 0:18:30.119 membership programs of their own, whether on platform or off platform. 0:18:30.560 --> 0:18:32.760 They need to look at things that give them recurring 0:18:32.840 --> 0:18:35.600 revenue outside of the platform, and telling more creators to 0:18:35.600 --> 0:18:38.760 look into opportunities to build their own products, build their 0:18:38.800 --> 0:18:43.200 own merchandise. YouTube recently partnered which Shopify, and they also 0:18:43.240 --> 0:18:47.600 expanded their creator monetization program with regard to merch and 0:18:47.680 --> 0:18:51.040 even physical and digital products. Used to have a ten 0:18:51.200 --> 0:18:56.639 thousand subscriber their it's it's so fascinating, We're gonna have 0:18:56.680 --> 0:18:58.680 to log onto you tube and watch your videos to 0:18:58.800 --> 0:19:01.280 find out the rest. But appridging joining us and of 0:19:01.320 --> 0:19:11.720 course pleased by marks book. Welcome back to one Work 0:19:11.760 --> 0:19:14.400 Technology and I'm win Chang in pal Alto. I want 0:19:14.400 --> 0:19:16.119 to get back to a check on the markets and 0:19:16.160 --> 0:19:20.560 shares of so called meme stocks on moon Works at 0:19:20.600 --> 0:19:23.880 Ludlow back with an update. Yeah, and one name in particular, 0:19:23.920 --> 0:19:26.960 which is bed Bath and beyond that stock falling for 0:19:27.000 --> 0:19:29.840 a fifth straight day, it's worse run since July. It 0:19:29.880 --> 0:19:33.040 follows news over the weekend that the company's CFO, Gus 0:19:33.040 --> 0:19:36.720 star Are Now died on Friday after falling from a 0:19:36.760 --> 0:19:41.080 skyscraper in Manhattan, the company saying that they have appointed 0:19:41.119 --> 0:19:44.840 an interim CFO. You see that decline more than eighteen percent. 0:19:45.119 --> 0:19:47.120 Reminded that this is a stock that in the month 0:19:47.119 --> 0:19:51.320 of August surged by zero percent. Caught up in the 0:19:51.400 --> 0:19:55.600 meme stock frenzy where retail investors discussed this other stocks 0:19:55.600 --> 0:20:00.200 on forums online, such as Reddit. That decline being elt 0:20:00.200 --> 0:20:02.679 in the market. You see other so called meat stocks 0:20:02.680 --> 0:20:05.480 like game Stop down eight percent. AMC Entertainment also down, 0:20:05.520 --> 0:20:08.440 but the activity around this area is really dropped off. 0:20:08.480 --> 0:20:11.600 If we use cool volumes as a proxy, we've seen 0:20:11.600 --> 0:20:15.240 the fewest CAOL trades in this space, particularly for names 0:20:15.240 --> 0:20:18.679 like game Stop, since nowhere near the frenzy that we 0:20:18.720 --> 0:20:22.560 saw in early one. Who is interesting to see some 0:20:22.680 --> 0:20:25.560 reporting on the Bloomberg terminal while I was away about 0:20:25.600 --> 0:20:27.920 this idea that when we got to return to school 0:20:28.440 --> 0:20:30.680 also meaning a return to college, that we might see 0:20:30.720 --> 0:20:33.600 the frenzy in meme stocks pick back up. Because a 0:20:33.600 --> 0:20:36.080 lot of the traders that are doing this are young. 0:20:36.119 --> 0:20:39.320 They're discussing this online in their spare time. That hasn't 0:20:39.400 --> 0:20:41.640 really been the case. We've seen that sort of negative 0:20:41.880 --> 0:20:44.760 sentiment around Meme stocks continue, with bed Bath and Beyond 0:20:45.119 --> 0:20:47.560 being the exception in the month of August. But tragic 0:20:47.600 --> 0:20:50.360 news of course relating to that that company, and our 0:20:50.359 --> 0:20:53.960 thoughts of course go to us family such tragic news. 0:20:53.960 --> 0:20:57.680 Thank you for that update. I want to move on 0:20:57.800 --> 0:21:01.000 to the I p O market, now on pace for 0:21:01.280 --> 0:21:04.640 one of its worst years in decades after an incredible 0:21:04.640 --> 0:21:08.080 amount of deal activity of course last year in one, 0:21:08.200 --> 0:21:11.840 leaving many companies with few options as they waiting for 0:21:11.840 --> 0:21:14.199 the market to calm down, joining us Now Equities and 0:21:14.240 --> 0:21:17.720 founder and chief strategy officer Phil has Let. So, Phil, 0:21:17.760 --> 0:21:19.720 I believe last time you were on the show, you 0:21:19.760 --> 0:21:22.399 said the I p O window is totally sailed shut 0:21:22.480 --> 0:21:25.800 and not opening for a very long time. Do you 0:21:25.840 --> 0:21:28.280 still believe that? Yeah, Well, it must have been a 0:21:28.320 --> 0:21:31.280 heck of a party at the Pliat burning Man, because 0:21:31.280 --> 0:21:34.080 it's been incredibly quiet this morning and today with news. 0:21:34.160 --> 0:21:36.840 You know, we normally see kind of a stampeding of 0:21:36.920 --> 0:21:39.000 ip O news and big funding rounds on the day 0:21:39.000 --> 0:21:41.400 after Labor Day. Companies really eager to get out there 0:21:41.400 --> 0:21:45.000 and announce something big, and we've seen barely anything. So, um, 0:21:45.040 --> 0:21:47.119 I'm a bit surprised that, you know, kind of post 0:21:47.119 --> 0:21:49.880 summer that there's still been a lot of activity. Um, 0:21:49.920 --> 0:21:51.480 in fact, that we're kind of starting to see that 0:21:51.520 --> 0:21:53.080 maybe some deals are getting done, but a little bit 0:21:53.119 --> 0:21:55.520 more discreetly, maybe with a bit more structure. And so 0:21:55.640 --> 0:21:57.920 I think that, you know, the thesis remains the same 0:21:57.960 --> 0:21:59.920 that actually the ip O window is still pretty quiet, 0:22:00.400 --> 0:22:04.040 and yet we're hearing that insta cart, for example, is 0:22:04.080 --> 0:22:08.160 still considering going public this year. Why would a company 0:22:08.400 --> 0:22:13.280 do this now when conditions are so unfavorable. Sure, I 0:22:13.320 --> 0:22:16.159 think there's a subset of the private unicorn companies that 0:22:16.240 --> 0:22:18.760 have such a large brand and such a large cache 0:22:18.800 --> 0:22:21.600 that really the only way to continue elevating awareness and 0:22:21.640 --> 0:22:24.560 creating a currency to buy smaller companies is really to 0:22:24.560 --> 0:22:27.600 go public. Um. Insta Cart, I guess continue to raise 0:22:27.640 --> 0:22:29.400 money in the private markets, but if they really want 0:22:29.400 --> 0:22:31.880 to have extra prominence, uh, they are going to tap 0:22:31.880 --> 0:22:34.760 the public markets. And they've also kind of created a 0:22:34.760 --> 0:22:37.159 clean path to do so by kind of already knocking 0:22:37.160 --> 0:22:40.720 down their valuation publicly having a very senior executive team, 0:22:40.720 --> 0:22:43.480 including the CEO. UM and so I kind of think 0:22:43.520 --> 0:22:45.320 of it's similar to how maybe a company like Ali 0:22:45.359 --> 0:22:48.040 Baba or Facebook, maybe even a tougher environment, still elected 0:22:48.080 --> 0:22:51.639