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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is Wall Street Week. I'm David Weston bringing you

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Speaker 2: stories of capitalism. The US government has become a venture capitalist,

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Speaker 2: buying equity and quantum computing companies as a bet on

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Speaker 2: the future. Plus, Google turns to AI in making the

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Speaker 2: biggest changes in its search engine in over twenty years.

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Speaker 3: And the World.

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Speaker 2: Cup returns to North America for the first time since

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Speaker 2: nineteen ninety four, with a lot more teams, a lot

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Speaker 2: more matches, and a lot higher price tag for fans.

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Speaker 2: But we start with the arrival of the mega IPO

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Speaker 2: led by SpaceX, with Anthropic and OpenAI right behind. What

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Speaker 2: does starting out with a one trillion dollar market cap

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Speaker 2: mean for the markets and those of us investing in them.

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Speaker 2: Stephen Randner is chairman and CEO of Willet Advisors, which

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Speaker 2: invest the personal and philanthropic assets of our founder and

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Speaker 2: majority owner Michael Bloomberg. Steve this week, we have had

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Speaker 2: the IPO spasics long awaited, and it's not the only

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Speaker 2: one that appears to be going out at a trillion

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Speaker 2: dollars or more. We also have Anthropic and we have

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Speaker 2: Open AI. There's a lot of talk about this in

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Speaker 2: the financial press.

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Speaker 3: Is it that big a deal?

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Speaker 4: Oh yeah, this is extraordinary. I've been in this business

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Speaker 4: for a pretty long time, back in the day when

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Speaker 4: a few hundred million dollars in market cap and an

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Speaker 4: IPO of fifty million dollars was reasonable. And now look

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Speaker 4: where we are. We've never had companies of this kind

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Speaker 4: of valuation on the day they go public, go public.

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Speaker 4: We've never had this amount of capital being raised in

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Speaker 4: an ipo. It's extraordinary, and perhaps it's a natural part

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Speaker 4: of the evolution of capital markets, but it is still extraordinary.

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Speaker 2: It's also, i would say relatively concentrated, as much of

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Speaker 2: the stock market has been actually in big tech. I mean,

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Speaker 2: it's all tech related, AI elected related.

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Speaker 3: Is that a problem?

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Speaker 2: Potentially?

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Speaker 4: People certainly worry about it, the fact that you have

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Speaker 4: such a high percentage of the stock market and a

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Speaker 4: relatively small number of seven to ten companies, depending on

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Speaker 4: how you count. I've seen start showing that if you

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Speaker 4: look back at the dot com bubble, if you look

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Speaker 4: back at nineteen twenty nine, at some of the other corrections,

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Speaker 4: there was a similar phenomenon. I'm not sure why those

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Speaker 4: two things necessarily should go together, but certainly the world

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Speaker 4: is in love with tech at the moment, and whether

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Speaker 4: that will prove justified or not, time will tell.

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Speaker 2: Are there normal rules of finance suspended when it comes

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Speaker 2: to these because I mean, if you look at things

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Speaker 2: like valuations, I mean they're really extraordinary. I mean, for example,

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Speaker 2: what they're talking about is spasics. Is it really you're saying,

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Speaker 2: like ninety five times they're trailing revenue not earnings revenue?

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Speaker 4: Yeah, I think I absolutely would agree with that. But

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Speaker 4: I would also say that back in the dot com bubble,

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Speaker 4: we had companies going public I think, with no revenue

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Speaker 4: or some dominimus amount of revenue. Again, much smaller valuations,

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Speaker 4: much smaller offering sizes. But yes, the valuations very much

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Speaker 4: depend on what you believe is going to happen in

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Speaker 4: the future as opposed to what already happened or what's

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Speaker 4: happening at the moment.

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Speaker 2: When I talk about SpaceX and Anthropic and Opening Eye,

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Speaker 2: they're very different in one respect, which is profitability. SpaceX

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Speaker 2: actually has been losing money, making money in some parts,

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Speaker 2: losing money in others, and Opening Ai has yet to

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Speaker 2: make money, and Thropic actually is making money. Should that

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Speaker 2: make a difference to investors if they look at these

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Speaker 2: three stocks.

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Speaker 4: Not necessarily. I mean, it's certainly making money now is

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Speaker 4: better than making money somewhere down the road. But an

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Speaker 4: investment decision is essentially looking at the present value of

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Speaker 4: future cash flows, and so if you believe the future

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Speaker 4: cash flows will be there, then the fact that it

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Speaker 4: doesn't make money now is not the end of the world. Obviously.

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Speaker 4: People who invest in private venture capital kinds of things,

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Speaker 4: or growth kinds of things are often investing in companies

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Speaker 4: that make no money at that point. Some of them

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Speaker 4: don't even have a business at that point, but you're

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Speaker 4: believing what's going to happen in the future. The problem

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Speaker 4: is that the further down the road the cash flows

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Speaker 4: are going to occur, the positive cash flows, the more

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Speaker 4: uncertainty obviously there is around them, the more you get

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Speaker 4: into questions of what's the right discount rate and how

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Speaker 4: do you really value cash flows that are five, six,

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Speaker 4: seven years out.

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Speaker 2: As an investor looking at these stocks, we have SpaceX,

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Speaker 2: which is a fairly complex cregion. I mean, you got

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Speaker 2: space Launch, you've got AI, You've got all sorts of

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Speaker 2: things in there. As opposed, for example, Anthropic, which is

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Speaker 2: a cleaner play. Does that make SpaceX more attractive or

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Speaker 2: less attractive?

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Speaker 4: I think you could go either way. I think there

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Speaker 4: are plenty of companies with one line of business that

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Speaker 4: have done fine, and there are other companies with multiple

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Speaker 4: lines of business that have done fine. If you look

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Speaker 4: at SpaceX, the launch business is a excellent business. Musk

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Speaker 4: has done a fantastic job of essentially winning that race,

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Speaker 4: so to speak. If you look at the but it's

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Speaker 4: a small business. It's never going to be a trillion

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Speaker 4: dollar valuation kind of business. If you look at the

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Speaker 4: Starling business, he's clearly done a great job with that

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Speaker 4: as well, But again it's not going to fully justify

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Speaker 4: probably the valuation. And so you have to believe that

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Speaker 4: out there there's something else. There's an AI business, whether

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Speaker 4: it's data centers in space or groc actually becoming more

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Speaker 4: viable than it seems to be so far, or something

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Speaker 4: like that.

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Speaker 2: We can't know right now. But as you look at

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Speaker 2: this as an investor, do you wonder where the upside is?

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Speaker 2: I mean, as you know so well, companies are taking

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Speaker 2: a lot longer to go public in general, which means

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Speaker 2: that a lot more of the upside may be before

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Speaker 2: it goes public and a lot of the growth may

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Speaker 2: be behind you as you go public. Is there a

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Speaker 2: risk in something like a SpaceX that actually the good

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Speaker 2: part's already been realized.

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Speaker 4: Absolutely? Absolutely. There's lots of research that's been done on IPOs.

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Speaker 4: Smaller IPOs of smaller companies tend to not perform as

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Speaker 4: well over in the fullness of time post bigger companies.

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Speaker 4: We obviously, again have no experience with something of the size,

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Speaker 4: so who knows. But you remember when Facebook now Meta

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Speaker 4: when public, it was a really messy IPO. The stock

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Speaker 4: traded down, people were bailing out, and now look at it.

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Speaker 4: Google had this weird IPO with their Dutch reverse Dutch

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Speaker 4: auction whatever you want to call a thing, also a

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Speaker 4: little complicated. Eventually look where Google is now. But then

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Speaker 4: there's plenty of tombstones out there for the ones, I

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Speaker 4: mean graveyard kind of tombstones, not celebratory tombstones, for the

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Speaker 4: ones that didn't work out so well.

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Speaker 2: So there's concentration in the big tech AI area. There's

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Speaker 2: just a concentration in the person of Elon Musk. He

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Speaker 2: has eighty five percent something like that. The voting control

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Speaker 2: also's the CEO of the CTO and the chairman.

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Speaker 3: What are the risks involved in that?

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Speaker 4: As an investor, Well, there's definitely what we call key

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Speaker 4: man risk. This company is a unique creation of Elon Musk.

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Speaker 4: I think he's got a good team. Gwynn Shotwell has

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Speaker 4: a great reputation. He doesn't suffer fools, obviously, only people

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Speaker 4: who really can stay with them. But nonetheless, it's hard

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Speaker 4: to imagine many other people who could have achieved something

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Speaker 4: of this extraordinary magnitude. So I would separate the voting

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Speaker 4: control issue, which we can talk more about, from Ilon

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Speaker 4: the person actually calling the shots, making the important decisions

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Speaker 4: that I think is critically important. The voting thing, I

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Speaker 4: think is a different kettle fish.

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Speaker 3: What do three.

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Speaker 2: IPOs as we're looking at right now mean for the

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Speaker 2: rest of the marketplace and other investors? I mean, first

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Speaker 2: of all, could there be a slipstream effect where there

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Speaker 2: are other ancillary businesses that serve these business that could

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Speaker 2: be brought along in the slipstream.

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Speaker 4: It depends how they go. If they go well, then

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Speaker 4: you will see more of them. It's not completely a coincidence.

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Speaker 4: I will think that you haven't seen that many IPOs

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Speaker 4: of these kinds of companies and they've been staying private

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Speaker 4: for longer. Part of is the IPO market has not

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Speaker 4: been really robust for a good number of years. Now

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Speaker 4: I think it's finally coming out of that. And partly

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Speaker 4: I think people have not really wanted the hassle of

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Speaker 4: being a public company, and like being private. Now you

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Speaker 4: need the amounts of capital that these companies need, You

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Speaker 4: really at some point have no choice, and so I

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Speaker 4: think if this goes well, these three or most of them,

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Speaker 4: I think you will see more of them come out

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Speaker 4: of the venture growth world and into the public markets.

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Speaker 2: One of the things that was commonated is a circular

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Speaker 2: nature of some of the transactions going on among these companies.

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Speaker 3: I mean specifically the space X.

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Speaker 2: They have a deal with Nthropic right where Anthropics paying

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Speaker 2: them a lot of money I think like a billion

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Speaker 2: two fifty.

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Speaker 3: A month, but with a ninety day out.

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Speaker 2: But there are a lot of other circularities among the

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Speaker 2: ownership and the relationships among these companies.

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Speaker 3: Is that a risk and people.

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Speaker 4: Go back and they use analogies again the dot com era,

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Speaker 4: when people were doing these contracts for dark fiber, but

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Speaker 4: they were never.

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Speaker 3: Going to need it.

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Speaker 4: They were never going to use it, it was never

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Speaker 4: going to get built.

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Speaker 3: Whatever.

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Speaker 4: I don't think it's that much of a risk here

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Speaker 4: because fundamentally, what we do know this far is that

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Speaker 4: AI is going to be a game changer. When you

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Speaker 4: look at the pace of revenue growth for the providers

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Speaker 4: of the large language models, it is I don't think

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Speaker 4: I've ever in my career see businesses exceed a set

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Speaker 4: of projections by as much as these companies have. More

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Speaker 4: often than not, businesses fall but short of your projections.

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Speaker 3: Whatever.

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Speaker 4: This has been extraordinary, and the usage, the adoption rate

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Speaker 4: is unlike any technology I believe in history in terms

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Speaker 4: of how fast it's being used and how much it's

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Speaker 4: being used by people. So there's a real business at

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Speaker 4: the bottom of this. If Musk wants to use some

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Speaker 4: of his excess data capacity to generate some revenue in

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Speaker 4: the meantime while he tries to build Rock into a

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Speaker 4: viable LLM, I don't have a problem with that. You

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Speaker 4: just have to as an investor, looks at that. You

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Speaker 4: have to understand what it is you're doing, how long

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Speaker 4: the contracts are, what the repeatability is, and so forth.

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Speaker 2: The dramatic growth that you describe also comes with what

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Speaker 2: I would say is dramatic capital investment.

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Speaker 3: I mean, the.

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Speaker 2: Capex is extraordinary. When does it need to pay off?

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Speaker 2: I mean, at some point you put all that capital in,

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Speaker 2: you need to get a return on that capital. And

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Speaker 2: give the amount of capital going in, it's got to

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Speaker 2: be a lot of return.

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Speaker 4: Sure, Anthropic is already profitable, so we can kind of

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Speaker 4: see what this can look like. Yeah, I'm not going

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Speaker 4: to argue about that. It's an extraordinary amount of capital

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Speaker 4: and you expect extraordinary returns. But I do believe that

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Speaker 4: AI is a game changer unlike anything I've seen in

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Speaker 4: my lifetime in terms of what the impact could have

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Speaker 4: on business and how business is conducted and how we

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Speaker 4: use technology and things like that.

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Speaker 2: But it must be stifling capital off from other possible

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Speaker 2: uses of the capital. I mean, is it starving other

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Speaker 2: businesses that could be using capital to good effect?

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Speaker 4: As a matter of corporate finance theory, sure, if you

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Speaker 4: use more of something, the price of it should go up,

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Speaker 4: but you can't find that in the marketplace. I don't

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Speaker 4: think in terms of where corporate bonds are trading. The

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Speaker 4: ability of these companies to raise capital, and they've mostly

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Speaker 4: been raising equity, it should be noted as well. One

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Speaker 4: of the things we're learning from this period is that

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Speaker 4: the capital markets are deeper and more robust and more

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Speaker 4: fulsome than we probably ever would have imagined.

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Speaker 2: Is this one and done? Will there ever be any

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Speaker 2: series of IPOs like this again? At this level of mague?

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Speaker 2: We've never seen it before.

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Speaker 4: No, we've never seen it before. But again, I think

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Speaker 4: if you looked at other periods where we had very

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Speaker 4: robust IPO activity. I don't know, when Ali Baba went

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Speaker 4: public of the twenty billion dollar IPO, we might have said, well,

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Speaker 4: we're not going to see that again. Or Saudi a

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Speaker 4: Ramco or General Motors the other two big twentyish billion

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Speaker 4: dollar ones we might have said, oh, that's like kind

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Speaker 4: of once in a lifetime. And now we're seventy five billion.

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Speaker 4: So I would never say never. I think the numbers

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Speaker 4: just get larger over time. I would not have predicted this.

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Speaker 4: I'm not going to predict the next one will be

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Speaker 4: a one hundred and fifty billion dollar IPO, but I

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Speaker 4: wouldn't say never.

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Speaker 2: Up next, the United States is investing two billion dollars

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Speaker 2: in quantum computing. What does it mean when Uncle Sam

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Speaker 2: becomes a venture capitalist and what does it say about

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Speaker 2: where the world of computing is headed. This is a

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Speaker 2: story about the government as venture capitalist. The Trump administration

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Speaker 2: has announced it will invest two billion dollars in nine

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Speaker 2: quantum computing firms. The Trump administration takes his stake and

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Speaker 2: selects quantum computing firms.

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Speaker 3: That entire ecosystem of quantum computing.

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Speaker 1: Stocks like Sorghetti and d Wave all moving higher on

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Speaker 1: the back of that news.

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Speaker 2: Really strong optimism on this quantum computing sector. These investments

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Speaker 2: will not be grants or contracts to buy from these firms.

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Speaker 2: They will be equity stakes in the frontier technology of

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Speaker 2: harnessing quantum physics to build an entire new form of computing,

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Speaker 2: something talked about and researched for years, but that has

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Speaker 2: remained stubbornly on the horizon. IBM by itself will receive

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Speaker 2: half of the government investment. Sam Palmersano spent forty years

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Speaker 2: at IBM, rising to be its chairman and CEO. He

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Speaker 2: was there when the company began its quantum quest.

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Speaker 5: I think the societal implications are greater than the financial investment.

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Speaker 5: Put in perspective, three decades ago, I invested.

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Speaker 3: In quantum and IBM research.

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Speaker 5: So when I left the board, which was twenty years ago,

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Speaker 5: I said it'll be there in ten to fifteen years.

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Speaker 5: I'm wrong again, wrong again, very difficult scientific problems, disease, energy,

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Speaker 5: financial markets, logistics, national security, cyber It has the technology

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Speaker 5: to do things that would have taken days on a

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Speaker 5: supercomputer at IBM built, could maybe take an hour or two. Literally,

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Speaker 5: I mean there's things that are intractable that we deal

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Speaker 5: with as a society, climate change, those kinds of things,

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Speaker 5: things that are heavily scientific, and I'll say physics in

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Speaker 5: this field can all be addressed assuming you know where

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Speaker 5: they are. Actually does happen in the next two or

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Speaker 5: three years.

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Speaker 2: The potential may be enormous, But what exactly is quantum

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Speaker 2: and why has it taken so long to realize the

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Speaker 2: potential we've been promised. Last year we talked with Jamie Garcia,

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Speaker 2: director of Strategic Growth and Quantum Partnerships at IBM. A

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Speaker 2: PhD chemist. She's working at the Cleveland Clinic, where IBM

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Speaker 2: has installed one of its quantum computers with the goal

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Speaker 2: of transforming healthcare.

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Speaker 6: Quantum computers are just a totally different paradigm to calculate

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Speaker 6: solutions to problems, and so what most experts have done

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Speaker 6: today that are studying quantum computing for different application spaces

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Speaker 6: is to really sit down with the math and figure out, like,

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Speaker 6: are the algorithms here that I can use and that

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Speaker 6: I can exploit using a quantum computer going to bring

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Speaker 6: me any sort of advantage over what can be done

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Speaker 6: today in classical sort of state of the art techniques.

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Speaker 2: At the core of classical computing are bits, single pieces

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Speaker 2: of information. They can have the value of zero or one.

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Speaker 2: But quantum technology relies on cubits, a unit that can

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Speaker 2: have multiple values simultaneously. It's like holding a coin in

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Speaker 2: your hand that heads tails and everything in between until

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Speaker 2: you open your hand to check. Physicist Jerry chow is

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Speaker 2: IBM's CTO of quantum centric Supercomputing working at the Thomas J.

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Speaker 2: Watson Research Center just north of New York City.

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Speaker 7: Really, fundamentally, there's a different math, right's the mathematics of

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Speaker 7: quantum mechanics that is governing how you actually manipulate these

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Speaker 7: quantum bits, which then gives rise to a whole host

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Speaker 7: of different opportunities for algorithms and types of problems that

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Speaker 7: you can actually solve using quantumputers.

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Speaker 2: A turning point in IBM's efforts to make quantum computing

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Speaker 2: a reality came when it made it available to the

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Speaker 2: world on the.

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Speaker 3: Cloud twenty sixteen.

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Speaker 7: The IBM Quantum Experience was really a pivotal moment for

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Speaker 7: us in terms of getting quantum computers for the first

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Speaker 7: time out onto the cloud and into the hands of anybody,

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Speaker 7: really people. Right. What's interesting is that before that period,

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Speaker 7: I'd say, it was really much more in the realm

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Speaker 7: of physics, right that we were doing experiments on small devices,

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Speaker 7: cubit devices that we were looking at, understanding how they worked,

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Speaker 7: trying to make them better, but we didn't have any

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Speaker 7: kind of real thought about how is this going to

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Speaker 7: be used for computation.

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Speaker 2: In the nine years since you put Quantum Experience out there,

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Speaker 2: what is what have you learned?

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Speaker 3: At IBM, there.

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Speaker 7: Was a whole lot of people out there who wanted

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Speaker 7: to touch and learn about quantum. I think we were

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Speaker 7: sitting there that first night after we launched it, watching

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Speaker 7: these circuits coming in and people were actually running things,

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Speaker 7: and we were like, oh, wow, this is picking up

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Speaker 7: some steam here, you know, And then you know, to

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Speaker 7: this point we've had tremendous uptake in terms of using

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Speaker 7: the platform to actually generate new papers and research. Thousands

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Speaker 7: of papers have been generated which have been would have

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Speaker 7: been impossible for us to do, just as individual scientists

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Speaker 7: or researchers studying these devices in our own life. I've

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Speaker 7: been working with other scientists and collaborations, and.

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Speaker 2: In success that community could go places that classical computing,

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Speaker 2: even using the large language models of AI, could never

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Speaker 2: take us. So it's not just speed, it's actual accuracy.

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Speaker 2: When we're using classical no matter how infinite we get,

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Speaker 2: it's an approximation.

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Speaker 7: Right, Absolutely, it's absolutely not just not a question about speed.

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Speaker 7: The whole point of the quantum computer and what it

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Speaker 7: can do is that it can give us the ability

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Speaker 7: to actually get potentially more accurate results, also get results

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Speaker 7: that otherwise are unattainable using a classical computer alone.

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Speaker 2: Companies like Google, Microsoft, and Intel are all exploring the

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Speaker 2: potential of quantum computing, but there's also a new group

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Speaker 2: of contenders, startups that are betting it all on the

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Speaker 2: hope that quantum tech will one day become profitable. One

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Speaker 2: of those firms is Maryland based ion q. It's CEO

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Speaker 2: is Nicolo Demasi, who believes he has the best in

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Speaker 2: the race.

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Speaker 8: We supply quantum computers to both federal, state and commercial

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Speaker 8: customer partners. We also provide quantum key distribution, and we

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Speaker 8: do that both on the ground and up in the heavens.

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Speaker 8: Quantum key dis solution is effectively quantum cyber security, and

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Speaker 8: we're very focused on this not being just proof points

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Speaker 8: in the lab, but doing useful quantum advantage examples for

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Speaker 8: our customers and embedding ourselves into their workflows on an

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Speaker 8: ongoing basis.

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Speaker 2: The potential may be great, as are the investments being made,

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Speaker 2: but when can we expect to see these potentially dramatic results.

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Speaker 2: It turns out that that depends on whom you ask.

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Speaker 2: IBM has made getting to quantum advantage in the real

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Speaker 2: world a strategic priority and has a timeline of getting

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Speaker 2: there in a big way by twenty twenty nine.

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Speaker 7: Our roadmap really shows the detail in terms of how

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Speaker 7: we want to get from today to twenty twenty nine.

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Speaker 7: In between, we have this real important milestone also that

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Speaker 7: we believe that with the community, we'll be hitting quantum

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Speaker 7: advantage right where there'll be some problems and claims of

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Speaker 7: advantage where we'll see quantum really surpassing any classical methods

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Speaker 7: of solving certain types of problems.

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Speaker 2: IBM says it's on track to have quantum computing payoff

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Speaker 2: in a big way by twenty twenty nine, but ion

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Speaker 2: q's Demasi says they're already there.

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Speaker 8: So our machines we announced on September twelfth at our

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Speaker 8: Analyst Day, are thirty six quadrillion times more powerful than

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Speaker 8: anyone else's machine, and that gap is increasing. Not only

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Speaker 8: do we believe we are five years ahead of anybody

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Speaker 8: else in the quantum computing business, whether it's government programs, adversaries,

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Speaker 8: or commercial companies, but we also have the lowest unit economics,

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Speaker 8: so we're able to build a fully tolerant two million

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Speaker 8: cube but system and keep our cost of good souls

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Speaker 8: under thirty million dollar.

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Speaker 2: The quantum race is on and the promises are big,

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Speaker 2: but the winner is in the eyes of the beholder.

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Speaker 2: IBM says it's ahead because it has more total cubits

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Speaker 2: in its machines. Ion Q says it's not the number

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Speaker 2: of cubits, but the number of algorithmic cubits putting it

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Speaker 2: in front. Previously, these were questions for investors to weigh,

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Speaker 2: But now the government has entered the race and placed

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Speaker 2: bets on nine quantum computing companies. Those left out include

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Speaker 2: big players like Google and Microsoft, and smaller contenders like

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Speaker 2: ion Q. Google says that funding from the government would

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Speaker 2: have come with conditions that would have slowed down its progress.

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Speaker 2: Why do we need the government to participate? Why can't

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Speaker 2: the private markets take care of it on their own.

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Speaker 5: If you go back to the original investments in the Internet,

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Speaker 5: those ARPA and then it became arpronet, it was basically

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Speaker 5: a link to community to connect the scientific laboratories and

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Speaker 5: the academic research universities to exchange information on what they

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Speaker 5: were doing in research. That became the title communication backbone

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Speaker 5: for the Internet. The government didn't create the digital economy.

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Speaker 5: The government created the infrastructure, but built on the infrastructure

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Speaker 5: where the companies the ecosystem for innovation as well as investment.

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Speaker 5: An example of where things haven't worked so well had

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Speaker 5: to deal with an energy company back in the seventies

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Speaker 5: under Nixon. There was an energy crisis that failed miserably,

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Speaker 5: needless to say, because they tried to pick a company.

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Speaker 5: So when the governments not just here, when the governments

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Speaker 5: around the world. Look at state owned enterprises if you

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Speaker 5: want to go to China in places like that, when

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Speaker 5: they try to pick companies, their history says they aren't

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Speaker 5: as successful as when they create the environment for the

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Speaker 5: private sector to be successful.

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Speaker 2: This is an equity investment, that's correct, but there's a

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Speaker 2: range of companies that they're investing in, but it's equity

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Speaker 2: participation y, which is different when we want to have

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Speaker 2: with ARBA that was a grant.

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Speaker 5: Yes, correct, Yeah, that's absolutely right. And this is where

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Speaker 5: I think the model challenged because when you make an

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Speaker 5: equity investment, maybe they're spreading their risk. I mean, like

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Speaker 5: a pro growth equity pe firm, but at the end

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Speaker 5: of the day, you're picking. The risk associated with picking

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Speaker 5: us in the past is that government doesn't do a

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Speaker 5: very good job of operating and government doesn't have a

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Speaker 5: long term attention span. This technology is going to take

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Speaker 5: ten to fifteen I'm already in for thirty years, right,

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Speaker 5: I mean, so you know you need stability in that regard,

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Speaker 5: and that's where government struggles in operational detail. They do

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Speaker 5: policy right, they can make grants, do research, and they

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Speaker 5: need the fund long term stuff, but they're not strong

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Speaker 5: at actually running companies, and that's where they fail.

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Speaker 3: To most of us.

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Speaker 2: Two billion dollars sounds like a lot of money, but

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Speaker 2: when you compare that with some of the investments being

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Speaker 2: made right now in AI, I mean eight hundred and

441
00:22:47,720 --> 00:22:51,760
Speaker 2: fifty billion dollars. So is this criming the pump for investors?

442
00:22:51,800 --> 00:22:53,840
Speaker 2: Is this a way the government's saying we're willing to

443
00:22:53,880 --> 00:22:56,280
Speaker 2: invest in that will encourage other investors to come in.

444
00:22:56,960 --> 00:23:01,520
Speaker 5: I think the reason why two billion is nothing is

445
00:23:01,560 --> 00:23:04,560
Speaker 5: what's going to take just go through the development cycles.

446
00:23:05,400 --> 00:23:06,160
Speaker 3: When they talk.

447
00:23:06,000 --> 00:23:09,439
Speaker 5: About a hybrid model for quantum, right, what they're talking

448
00:23:09,480 --> 00:23:13,760
Speaker 5: about is marrying this quantum advantage the technology to the

449
00:23:13,960 --> 00:23:17,399
Speaker 5: traditional approaches, which is cloud and AI. But it's not

450
00:23:17,480 --> 00:23:22,320
Speaker 5: commercial computing. It doesn't have what you need to make

451
00:23:22,400 --> 00:23:27,160
Speaker 5: this thing a robust commercial system, the data management, memory management,

452
00:23:27,200 --> 00:23:31,080
Speaker 5: backup and recovery, all the things you expect, right, accuracy

453
00:23:31,119 --> 00:23:34,040
Speaker 5: of your answers and things like that that you expect

454
00:23:34,080 --> 00:23:37,040
Speaker 5: if you're running a hospital or a bank or whatever

455
00:23:37,040 --> 00:23:39,600
Speaker 5: it happens to be. I don't think is going to

456
00:23:39,640 --> 00:23:41,200
Speaker 5: be there in two or three years. I mean, they're

457
00:23:41,200 --> 00:23:43,800
Speaker 5: working on it like crazy, but I think this thing's

458
00:23:43,800 --> 00:23:46,159
Speaker 5: got a way to go. From a financial perspective, it's

459
00:23:46,160 --> 00:23:49,840
Speaker 5: a two billion I mean, it's a start, but it's

460
00:23:49,840 --> 00:23:50,840
Speaker 5: certainly not going to be the.

461
00:23:50,760 --> 00:23:53,560
Speaker 3: Finish coming up.

462
00:23:53,760 --> 00:23:57,000
Speaker 2: Quantum computing may still be on the horizon, but AI

463
00:23:57,280 --> 00:24:01,200
Speaker 2: is here now and Google is redoing its entire approach

464
00:24:01,240 --> 00:24:03,680
Speaker 2: to search because of it. We talked with the man's

465
00:24:03,720 --> 00:24:18,119
Speaker 2: spearheading the changes, Nick Fox. This is a story about

466
00:24:18,119 --> 00:24:22,000
Speaker 2: anticipating your every want. Last week we told you how

467
00:24:22,040 --> 00:24:25,520
Speaker 2: AI is cutting into traffic for Internet publishers and what

468
00:24:25,560 --> 00:24:28,959
Speaker 2: that could mean for their business. But Google isn't standing

469
00:24:29,000 --> 00:24:32,320
Speaker 2: still for all the challenges from chatbots. Last month, it

470
00:24:32,359 --> 00:24:35,240
Speaker 2: announced the biggest changes to its search approach in over

471
00:24:35,280 --> 00:24:38,919
Speaker 2: twenty years. Nick Fox is Google's senior vice president for

472
00:24:39,040 --> 00:24:42,520
Speaker 2: Knowledge and Information and the man responsible for the changes.

473
00:24:44,080 --> 00:24:47,800
Speaker 2: With your experience rank order, which is probably unfair this

474
00:24:48,000 --> 00:24:51,720
Speaker 2: change with AI compared to other innovations you've done, oh.

475
00:24:51,680 --> 00:24:52,560
Speaker 9: I think number one for.

476
00:24:52,520 --> 00:24:58,159
Speaker 2: Sure for Google. That transformation includes AI generated answers, conversational search,

477
00:24:58,480 --> 00:25:02,360
Speaker 2: and new tools that can rea through complex questions, monitor

478
00:25:02,480 --> 00:25:06,000
Speaker 2: information across the web, and even complete tasks on a

479
00:25:06,119 --> 00:25:09,000
Speaker 2: user's behalf. How would you describe the change?

480
00:25:09,160 --> 00:25:11,359
Speaker 9: You know, just to take a step back. AI is

481
00:25:11,359 --> 00:25:13,520
Speaker 9: the best thing that's ever happened to search. And you know,

482
00:25:13,520 --> 00:25:14,879
Speaker 9: a lot of people are questioning that. A lot of

483
00:25:14,920 --> 00:25:16,639
Speaker 9: people are saying, hey, what does AI mean for search?

484
00:25:17,200 --> 00:25:19,160
Speaker 9: And what we see? You know, the vision of search

485
00:25:19,359 --> 00:25:20,840
Speaker 9: is you should be able to ask whatever question is

486
00:25:20,880 --> 00:25:23,000
Speaker 9: on your mind. And the way I think about that is,

487
00:25:23,040 --> 00:25:25,639
Speaker 9: we have probably thousands of questions that go through ahead

488
00:25:25,800 --> 00:25:28,639
Speaker 9: any given day. We ask maybe a few of them,

489
00:25:28,640 --> 00:25:30,040
Speaker 9: maybe we ask five of them, maybe we ask ten

490
00:25:30,080 --> 00:25:32,000
Speaker 9: of them. Why do we not ask them all? Well,

491
00:25:32,560 --> 00:25:34,000
Speaker 9: we don't know if there will be a helpful response

492
00:25:34,040 --> 00:25:35,960
Speaker 9: to it might be hard to ask that question. So

493
00:25:36,760 --> 00:25:38,600
Speaker 9: our big idea is you should be able to ask anything,

494
00:25:38,840 --> 00:25:41,880
Speaker 9: and AI really supercharges that. AI enables people to ask

495
00:25:42,000 --> 00:25:44,960
Speaker 9: whatever questions on their mind and get a helpful response.

496
00:25:45,040 --> 00:25:46,080
Speaker 9: And so that's what we're pushing on.

497
00:25:46,640 --> 00:25:49,719
Speaker 2: The Quality of the user experience is a priority for Google,

498
00:25:50,000 --> 00:25:52,879
Speaker 2: even as it's changed its search engine to put AI

499
00:25:53,160 --> 00:25:56,840
Speaker 2: at its core, and Rand Fishkin, who specialized in the

500
00:25:56,880 --> 00:26:00,600
Speaker 2: business of online search, says that improved experience is very

501
00:26:00,640 --> 00:26:02,480
Speaker 2: much central to Google's business.

502
00:26:02,840 --> 00:26:05,720
Speaker 10: Instead, they push those down and they put the instant

503
00:26:05,760 --> 00:26:08,439
Speaker 10: answer from AI right up at the top. They call

504
00:26:08,440 --> 00:26:11,480
Speaker 10: them AI overviews. In the long run, it's better for

505
00:26:11,520 --> 00:26:16,560
Speaker 10: their user experience and it creates an addiction to search

506
00:26:16,680 --> 00:26:19,159
Speaker 10: and quick answers. If they can get people searching more

507
00:26:19,440 --> 00:26:22,719
Speaker 10: and instantly answering their queries, they would come back more often,

508
00:26:22,960 --> 00:26:25,520
Speaker 10: they would trust Google more, and they would click on

509
00:26:25,600 --> 00:26:29,280
Speaker 10: more ads in the future. So Google is hurting themselves

510
00:26:29,359 --> 00:26:31,960
Speaker 10: a little tiny bit right now, costing themselves maybe a

511
00:26:32,000 --> 00:26:35,080
Speaker 10: dollar that they could charge so that in the future

512
00:26:35,600 --> 00:26:38,679
Speaker 10: they make five, ten, fifty five hundred dollars from you.

513
00:26:38,960 --> 00:26:41,919
Speaker 2: Fox does not deny the advantages to Google if it's

514
00:26:42,000 --> 00:26:45,040
Speaker 2: new approach to AI driven search gives users more reason

515
00:26:45,160 --> 00:26:48,440
Speaker 2: to use its product, but sees that as a feature

516
00:26:48,800 --> 00:26:49,639
Speaker 2: rather than a bug.

517
00:26:49,800 --> 00:26:51,760
Speaker 9: What we're seeing with users is they're asking for more

518
00:26:51,800 --> 00:26:55,679
Speaker 9: questions than they've ever asked before. They're getting the approach

519
00:26:55,720 --> 00:26:57,879
Speaker 9: that we've taken the press. That really defines what Google

520
00:26:58,000 --> 00:27:00,480
Speaker 9: in search is doing with AI is able to bring

521
00:27:00,480 --> 00:27:02,280
Speaker 9: the best of the web together with the best of AI,

522
00:27:02,280 --> 00:27:05,399
Speaker 9: where we able to bring frontier AI capabilities built on

523
00:27:05,920 --> 00:27:09,120
Speaker 9: our Gemini technology and in close collaboration with deep Mind,

524
00:27:09,480 --> 00:27:11,159
Speaker 9: and then we're able to bring that together with the

525
00:27:11,160 --> 00:27:14,440
Speaker 9: web so people can get links, they can discover content

526
00:27:14,960 --> 00:27:17,520
Speaker 9: across the web, but they can also get helpful responses

527
00:27:17,520 --> 00:27:22,119
Speaker 9: that contextualize the web and also give contextual responses they

528
00:27:22,119 --> 00:27:22,840
Speaker 9: answered their question.

529
00:27:23,119 --> 00:27:26,040
Speaker 2: But Fox insists that time spent on a search is

530
00:27:26,160 --> 00:27:29,840
Speaker 2: not the right metric for success. He'd rather people spend

531
00:27:30,000 --> 00:27:33,280
Speaker 2: less time on a particular question or search and be

532
00:27:33,359 --> 00:27:36,640
Speaker 2: able to press further to get their answers, including from

533
00:27:36,680 --> 00:27:37,080
Speaker 2: the web.

534
00:27:37,359 --> 00:27:39,600
Speaker 9: For us, it doesn't have to be about time and

535
00:27:39,680 --> 00:27:42,840
Speaker 9: to some extend attention. But what we don't measure search

536
00:27:42,920 --> 00:27:45,760
Speaker 9: by how many minutes are people spending on search. We

537
00:27:45,840 --> 00:27:48,600
Speaker 9: measure search by how many queries are people doing? How

538
00:27:48,640 --> 00:27:52,919
Speaker 9: many tasks are people doing. Actually, if it takes two

539
00:27:53,000 --> 00:27:54,760
Speaker 9: queriers to do a task instead of five queriers to

540
00:27:54,800 --> 00:27:56,760
Speaker 9: do a task, we would prefer that. We actually don't

541
00:27:56,760 --> 00:27:59,000
Speaker 9: want people to do more queries in a way where

542
00:27:59,000 --> 00:28:00,760
Speaker 9: they're you know, if they're doing more queries because they're

543
00:28:00,800 --> 00:28:02,760
Speaker 9: thrashing and they're not getting a good experience, or they're

544
00:28:02,760 --> 00:28:04,800
Speaker 9: spending more time because they're thrashing and not getting a

545
00:28:04,840 --> 00:28:07,800
Speaker 9: good experience, that's not what we optimize for. We actually

546
00:28:07,840 --> 00:28:09,480
Speaker 9: try to get people off Google as quickly as we

547
00:28:09,480 --> 00:28:11,000
Speaker 9: can as kind of the you know, one of the

548
00:28:11,040 --> 00:28:13,879
Speaker 9: things that I think has been a hallmark of Google.

549
00:28:14,440 --> 00:28:16,399
Speaker 9: We do want people to be doing more things with Google.

550
00:28:16,440 --> 00:28:19,200
Speaker 9: If we can help people with you know, twice as

551
00:28:19,200 --> 00:28:21,119
Speaker 9: many of their questions as we could you know before,

552
00:28:21,520 --> 00:28:23,679
Speaker 9: that's great, But it should be they're doing more with

553
00:28:23,760 --> 00:28:26,520
Speaker 9: Google because they're getting more done, rather than they're spending

554
00:28:26,560 --> 00:28:28,280
Speaker 9: more time to get to get the same set of

555
00:28:28,320 --> 00:28:28,920
Speaker 9: things done.

556
00:28:29,359 --> 00:28:31,959
Speaker 2: As AI takes on a greater role in helping us

557
00:28:32,000 --> 00:28:34,960
Speaker 2: gain access to content on the web, there are those

558
00:28:35,000 --> 00:28:38,280
Speaker 2: concerned about its use, discouraging the creators of the content.

559
00:28:38,840 --> 00:28:41,719
Speaker 2: Caitlin Petrie is author of the book All the News

560
00:28:41,800 --> 00:28:42,880
Speaker 2: That's Fit to Click.

561
00:28:43,480 --> 00:28:45,920
Speaker 11: I think that it's really important to think about what's

562
00:28:45,920 --> 00:28:51,080
Speaker 11: happening with people who make content and AI as this

563
00:28:51,200 --> 00:28:54,240
Speaker 11: kind of longer story of a tussle or a conflict

564
00:28:54,240 --> 00:28:58,400
Speaker 11: between tech companies and people who create media and information.

565
00:28:58,880 --> 00:29:02,680
Speaker 11: And then the question becomes if the business model for

566
00:29:03,160 --> 00:29:08,120
Speaker 11: making original content, and particularly I'm concerned with journalism and art,

567
00:29:08,160 --> 00:29:11,960
Speaker 11: but if the business model for making original stuff kind

568
00:29:11,960 --> 00:29:14,920
Speaker 11: of goes away or becomes even more challenging and even

569
00:29:14,920 --> 00:29:18,240
Speaker 11: more punishing than it already is, what do we do

570
00:29:18,360 --> 00:29:19,280
Speaker 11: about that you know.

571
00:29:19,880 --> 00:29:22,360
Speaker 9: People today expect that when you come to Google, it's accurate,

572
00:29:22,360 --> 00:29:23,040
Speaker 9: it's reliable.

573
00:29:23,760 --> 00:29:27,080
Speaker 2: Fox says he has similar concerns that whatever Google does

574
00:29:27,120 --> 00:29:29,880
Speaker 2: with AI and search not take away from the value

575
00:29:29,920 --> 00:29:32,600
Speaker 2: of the content on the web for the sake of

576
00:29:32,680 --> 00:29:37,320
Speaker 2: all involved. What does this mean beyond the users, but

577
00:29:37,400 --> 00:29:40,200
Speaker 2: for the rest of the web, the rest of content generators.

578
00:29:40,960 --> 00:29:43,240
Speaker 2: I mean, because Google was originally a way to organize

579
00:29:43,440 --> 00:29:46,520
Speaker 2: the web right, and a lot of content generators got

580
00:29:46,560 --> 00:29:49,760
Speaker 2: linked back to their material, what does this new approach

581
00:29:49,840 --> 00:29:50,440
Speaker 2: mean for them?

582
00:29:50,840 --> 00:29:53,800
Speaker 9: So we remain committed to Google organizing the web right.

583
00:29:54,040 --> 00:29:56,560
Speaker 9: That's a core part of what we do. And I

584
00:29:56,600 --> 00:29:59,920
Speaker 9: would say relative to really any other company, really, any

585
00:30:00,080 --> 00:30:03,440
Speaker 9: the organization out there, we care about the web incredibly,

586
00:30:03,440 --> 00:30:05,760
Speaker 9: incredibly deeply. We're a company that started in the web,

587
00:30:06,240 --> 00:30:08,240
Speaker 9: where a company that still is deeply in the web,

588
00:30:08,360 --> 00:30:13,360
Speaker 9: and so that is a bedrock commitment for us, and

589
00:30:13,400 --> 00:30:16,040
Speaker 9: so that leads to how we actually build our products

590
00:30:16,040 --> 00:30:19,240
Speaker 9: as well. So for example, in search, it's not just AI,

591
00:30:19,360 --> 00:30:22,320
Speaker 9: it's AI with links within the AI as well. It's

592
00:30:22,800 --> 00:30:24,480
Speaker 9: we don't think it has to the users need to

593
00:30:24,480 --> 00:30:26,640
Speaker 9: make a choice do I want AI or the web?

594
00:30:26,800 --> 00:30:28,960
Speaker 9: But rather, we can bring both of those together in

595
00:30:29,200 --> 00:30:32,160
Speaker 9: a really effective way. So we have lots of links

596
00:30:32,560 --> 00:30:35,040
Speaker 9: within the AI responses. It's not just because of a

597
00:30:35,040 --> 00:30:37,240
Speaker 9: commitment to the web. We also think it's really useful

598
00:30:37,400 --> 00:30:39,600
Speaker 9: for users. Right, if you're interested in a topic, you

599
00:30:39,640 --> 00:30:41,360
Speaker 9: want to go deep on a topic, you might get

600
00:30:41,360 --> 00:30:43,680
Speaker 9: an AI summary, you might get an AI sort of

601
00:30:43,720 --> 00:30:47,520
Speaker 9: overview to give you the context. But then you want

602
00:30:47,520 --> 00:30:48,920
Speaker 9: to read it. You want to read it more deeply.

603
00:30:48,920 --> 00:30:51,160
Speaker 9: You want to see original reporting on a topic. You

604
00:30:51,240 --> 00:30:54,480
Speaker 9: might want to see you know, first hand perspective. You

605
00:30:54,520 --> 00:30:56,400
Speaker 9: might want to hear from someone that was actually there.

606
00:30:57,160 --> 00:30:58,920
Speaker 9: You actually you want you want to get that, you don't,

607
00:30:59,000 --> 00:31:00,959
Speaker 9: you don't just want to hear from AI. And so

608
00:31:01,320 --> 00:31:04,080
Speaker 9: we're cognizant of that, and we design around that. People

609
00:31:04,080 --> 00:31:07,040
Speaker 9: are searching more than ever. People are searching for topics

610
00:31:07,080 --> 00:31:10,240
Speaker 9: they were never searching for before. That all creates opportunities

611
00:31:10,280 --> 00:31:12,280
Speaker 9: for websites to get discovered that never would have before.

612
00:31:12,360 --> 00:31:14,520
Speaker 9: Right if a user was never asked the question, the

613
00:31:14,560 --> 00:31:17,080
Speaker 9: website never would have gotten traffic, never would have gotten

614
00:31:17,080 --> 00:31:19,040
Speaker 9: a click. This is an expansionary moment, not just for

615
00:31:19,080 --> 00:31:20,080
Speaker 9: search but for the web.

616
00:31:19,920 --> 00:31:23,080
Speaker 2: Overall accuracy and trust have long been the foundation of

617
00:31:23,120 --> 00:31:26,680
Speaker 2: Google Search, but in an era of AI generated answers

618
00:31:26,760 --> 00:31:30,040
Speaker 2: where users may never click through to that underlying source,

619
00:31:30,560 --> 00:31:33,920
Speaker 2: ensuring the quality of that information has become more important

620
00:31:33,960 --> 00:31:37,680
Speaker 2: than ever. Accuracy and trust are important when you're searching.

621
00:31:38,280 --> 00:31:40,360
Speaker 2: How do you monitor that? Because there are a lot

622
00:31:40,360 --> 00:31:42,880
Speaker 2: of people out there who actually have almost a goal

623
00:31:43,480 --> 00:31:46,400
Speaker 2: of putting out information that's not reliable, that's not accurate.

624
00:31:46,720 --> 00:31:48,760
Speaker 2: How do you monitor how you're doing.

625
00:31:49,080 --> 00:31:50,840
Speaker 9: I mean, this is what Google has been doing for

626
00:31:51,320 --> 00:31:53,680
Speaker 9: years and years. Is what we've been doing for decades.

627
00:31:54,080 --> 00:31:56,760
Speaker 9: We understand the web. We understand the web very well.

628
00:31:56,800 --> 00:32:00,800
Speaker 9: We understand the very early days of of page rank

629
00:32:01,280 --> 00:32:03,240
Speaker 9: was that you could use the citations across the web

630
00:32:03,280 --> 00:32:07,240
Speaker 9: to understand what's what's more valuable than others. We've obviously

631
00:32:07,240 --> 00:32:09,280
Speaker 9: built on that, you know, tremendously over time. But we

632
00:32:09,360 --> 00:32:13,600
Speaker 9: understand the web well. We understand what are what's accurate

633
00:32:13,600 --> 00:32:15,720
Speaker 9: on the web, we understand what's reliable, we understand what's

634
00:32:15,720 --> 00:32:19,880
Speaker 9: trusted across the web. We're also able to understand when

635
00:32:19,920 --> 00:32:21,520
Speaker 9: we get it right, when we don't get it right,

636
00:32:21,520 --> 00:32:25,280
Speaker 9: because we're able to understand sort of metrics across our

637
00:32:25,360 --> 00:32:27,840
Speaker 9: user populations. So, for example, when we roll out a

638
00:32:27,840 --> 00:32:30,760
Speaker 9: new AI experience with in search, we know based on

639
00:32:32,080 --> 00:32:34,840
Speaker 9: you know, we run experiments, we run tests, and we

640
00:32:34,880 --> 00:32:38,000
Speaker 9: can analyze those to see has this improved the experience

641
00:32:38,160 --> 00:32:40,880
Speaker 9: or not. We only release changes that actually do improve

642
00:32:40,960 --> 00:32:41,480
Speaker 9: the experience.

643
00:32:41,920 --> 00:32:44,080
Speaker 2: Are there some categories of information that you have to

644
00:32:44,080 --> 00:32:46,280
Speaker 2: be particularly careful about? I mean a mindful of effect.

645
00:32:46,400 --> 00:32:47,960
Speaker 2: We're going to have elections in the United States coming

646
00:32:48,040 --> 00:32:50,000
Speaker 2: up in November, and you can have a lot of

647
00:32:50,000 --> 00:32:53,800
Speaker 2: people trying to use AI and the web to misinform

648
00:32:53,840 --> 00:32:55,800
Speaker 2: either political rivals or foreign governments.

649
00:32:55,920 --> 00:32:57,440
Speaker 3: What do you do to protect against that?

650
00:32:58,040 --> 00:33:01,440
Speaker 9: We are particularly careful on on those types of questions.

651
00:33:01,480 --> 00:33:03,720
Speaker 9: So if an election type of question, were particularly careful,

652
00:33:04,360 --> 00:33:07,280
Speaker 9: a finance type of question, a health kind of question.

653
00:33:07,920 --> 00:33:10,000
Speaker 9: The way we process is in a few ways. Number One,

654
00:33:10,040 --> 00:33:11,840
Speaker 9: if we don't think that the accuracy of the information

655
00:33:11,880 --> 00:33:14,120
Speaker 9: is high enough, we won't show an AI response in

656
00:33:14,160 --> 00:33:16,640
Speaker 9: that kind of a case. So that's kind of that's

657
00:33:16,680 --> 00:33:19,080
Speaker 9: the first. That's the first level of it. The second

658
00:33:19,160 --> 00:33:22,920
Speaker 9: is we invest incredibly heavily here. We focus particularly heavily

659
00:33:23,640 --> 00:33:26,640
Speaker 9: in categories where the where the stakes are particularly high.

660
00:33:26,720 --> 00:33:29,640
Speaker 9: And then the third pieces where we're clear with users

661
00:33:29,680 --> 00:33:32,600
Speaker 9: about what is AI generated and we indicate you know,

662
00:33:32,640 --> 00:33:37,000
Speaker 9: AI can make mistakes so that users can be cognizant

663
00:33:37,040 --> 00:33:37,200
Speaker 9: of that.

664
00:33:37,240 --> 00:33:41,240
Speaker 2: As well as AI reshapes how people find information online,

665
00:33:41,480 --> 00:33:45,200
Speaker 2: it is also reshaping the competitive landscape. And while Google

666
00:33:45,280 --> 00:33:48,720
Speaker 2: may dominate search today, the rise of AI has opened

667
00:33:48,760 --> 00:33:52,600
Speaker 2: the door to a new wave of competitors. You come

668
00:33:52,640 --> 00:33:55,600
Speaker 2: from a very strong position in search. I mean you've

669
00:33:55,600 --> 00:33:59,400
Speaker 2: become a verb in addition to a noun around the world.

670
00:34:00,360 --> 00:34:04,520
Speaker 2: Do you have a comparative advantage against other AI companies

671
00:34:04,600 --> 00:34:07,400
Speaker 2: and that you have search coming to AI rather than

672
00:34:07,440 --> 00:34:08,560
Speaker 2: starting in AI.

673
00:34:09,200 --> 00:34:14,080
Speaker 9: I think our advantage comes from uh deep expertise and

674
00:34:14,120 --> 00:34:16,320
Speaker 9: A and A and a deep focus on innovation and

675
00:34:16,520 --> 00:34:21,840
Speaker 9: continual reinvention. I think one of the maybe understated advantages

676
00:34:21,840 --> 00:34:24,600
Speaker 9: that Google has is we've been through many disruptions. Before

677
00:34:24,760 --> 00:34:28,080
Speaker 9: we went through a mobile disruption, we we arose, you know,

678
00:34:28,120 --> 00:34:30,960
Speaker 9: in the web disruption, there was Ajax technologies of his voice.

679
00:34:31,280 --> 00:34:35,080
Speaker 9: There's been sort of time after time disruptions. Each time

680
00:34:35,120 --> 00:34:37,840
Speaker 9: it would be is this the Google killer? And we

681
00:34:37,960 --> 00:34:40,560
Speaker 9: have worked through those and we have really a playbook

682
00:34:40,719 --> 00:34:42,960
Speaker 9: of how to work through those, which is lean into

683
00:34:42,960 --> 00:34:45,520
Speaker 9: the innovation, innovate through the you know, innovate through the

684
00:34:45,520 --> 00:34:50,759
Speaker 9: disruption with a with a an excitement about what the

685
00:34:50,800 --> 00:34:54,760
Speaker 9: technology can enable, and a and a promise to build

686
00:34:54,760 --> 00:34:57,400
Speaker 9: a better product for users through it. And and so

687
00:34:57,480 --> 00:35:00,400
Speaker 9: I think that's a that's a core advantage UH through

688
00:35:00,440 --> 00:35:03,280
Speaker 9: any of these transformations is to rely on that playbook.

689
00:35:03,400 --> 00:35:03,840
Speaker 3: You raise it.

690
00:35:04,080 --> 00:35:06,879
Speaker 2: I think a really interesting point. I mean, was there

691
00:35:06,960 --> 00:35:10,880
Speaker 2: any hesitation anywhere at Google to say, we're doing pretty

692
00:35:10,880 --> 00:35:13,560
Speaker 2: well in search? Why do we need to disrupt ourselves

693
00:35:13,560 --> 00:35:16,160
Speaker 2: on this? It's a sort of a form of innovator's dilemma?

694
00:35:16,560 --> 00:35:18,000
Speaker 2: Was there any sense of, you know, what we're doing

695
00:35:18,000 --> 00:35:19,520
Speaker 2: pretty well, why rock the boat?

696
00:35:20,040 --> 00:35:24,239
Speaker 9: Never? Because we've seen it before and we understand that

697
00:35:24,280 --> 00:35:27,680
Speaker 9: if you stand still, if you don't innovate for users,

698
00:35:28,280 --> 00:35:30,920
Speaker 9: you'll become irrelevant. And that's so clear.

699
00:35:30,960 --> 00:35:31,399
Speaker 3: We know that.

700
00:35:31,520 --> 00:35:33,680
Speaker 9: We know that time and time again, and so we

701
00:35:33,960 --> 00:35:36,640
Speaker 9: see a new technology come along, we jump on it.

702
00:35:37,080 --> 00:35:40,120
Speaker 9: We invent the new technologies in most cases, but we

703
00:35:40,160 --> 00:35:42,400
Speaker 9: see it, we jump on it. And we know that

704
00:35:42,440 --> 00:35:45,160
Speaker 9: if we innovate for users, it will be it will

705
00:35:45,200 --> 00:35:47,960
Speaker 9: be expansionary. We know that our business will will thrive

706
00:35:48,000 --> 00:35:48,400
Speaker 9: through it.

707
00:35:49,440 --> 00:35:53,000
Speaker 2: For Google, the choice was between disrupting its strong business

708
00:35:53,000 --> 00:35:57,360
Speaker 2: in search or having someone else disrupted. As AI yet

709
00:35:57,400 --> 00:36:01,800
Speaker 2: again reshapes how information is discovered and consumed. The question

710
00:36:01,880 --> 00:36:05,440
Speaker 2: will be, as it always is, whether this new innovation

711
00:36:05,600 --> 00:36:08,400
Speaker 2: gives people what they want and need.

712
00:36:09,640 --> 00:36:11,880
Speaker 9: We're seeing the users are loving it, and you know,

713
00:36:12,040 --> 00:36:14,080
Speaker 9: the best line that we see is that queries are growing.

714
00:36:15,640 --> 00:36:15,799
Speaker 3: Up.

715
00:36:15,840 --> 00:36:18,720
Speaker 2: Next, the Men's World Cup has returned to the shores

716
00:36:18,760 --> 00:36:21,719
Speaker 2: of North America for the first time since nineteen ninety four.

717
00:36:22,200 --> 00:36:25,840
Speaker 2: It's bigger and longer and higher profile than ever, but

718
00:36:26,000 --> 00:36:40,600
Speaker 2: can the fans afford it? This is a story about

719
00:36:40,640 --> 00:36:43,720
Speaker 2: having too much of a good thing. The Men's World

720
00:36:43,760 --> 00:36:45,960
Speaker 2: Cup has returned to the United States this summer for

721
00:36:46,000 --> 00:36:48,840
Speaker 2: the first time in over thirty years, and this time

722
00:36:49,080 --> 00:36:53,160
Speaker 2: Mexico and Canada have joined in. It's a dramatically different

723
00:36:53,239 --> 00:36:56,759
Speaker 2: championship than we saw in nineteen ninety four, with more teams,

724
00:36:56,920 --> 00:37:00,080
Speaker 2: more matches, and a lot more money. But is there

725
00:37:00,200 --> 00:37:02,920
Speaker 2: such a thing as going too far and extracting cash

726
00:37:02,960 --> 00:37:12,680
Speaker 2: out of mega sports events? Manchester local Andy Milne arrived

727
00:37:12,719 --> 00:37:14,960
Speaker 2: in Miami ready to cheer on England.

728
00:37:15,120 --> 00:37:17,200
Speaker 12: I can't wait for that first match when the national

729
00:37:17,200 --> 00:37:20,439
Speaker 12: anthem strikes up and I know that kickoff is two

730
00:37:20,480 --> 00:37:24,000
Speaker 12: minutes away and it's England against Croatia and our World

731
00:37:24,040 --> 00:37:28,080
Speaker 12: Cup is going to start. There's nothing like that feeling

732
00:37:28,239 --> 00:37:28,880
Speaker 12: in the world.

733
00:37:29,000 --> 00:37:32,520
Speaker 2: After attending his first football or soccer in America World

734
00:37:32,600 --> 00:37:35,440
Speaker 2: Cup in nineteen eighty two, this will be his tenth

735
00:37:35,800 --> 00:37:37,560
Speaker 2: and easily the most expensive.

736
00:37:37,680 --> 00:37:39,759
Speaker 12: And this is me with the lads at university with

737
00:37:39,840 --> 00:37:44,279
Speaker 12: my England shirt on, eager and ready to go over

738
00:37:44,360 --> 00:37:46,360
Speaker 12: there and watch the finals.

739
00:37:46,400 --> 00:37:49,400
Speaker 2: So expensive, he wrote a book to help fund the trip.

740
00:37:49,600 --> 00:37:52,799
Speaker 12: So in nineteen eighty two, obviously a completely different era,

741
00:37:53,000 --> 00:37:55,000
Speaker 12: right so achieved and you didn't have to get your

742
00:37:55,000 --> 00:37:58,560
Speaker 12: tickets in advance. You could queue for tickets outside the stadium.

743
00:37:58,680 --> 00:38:01,920
Speaker 12: So for the fire panel itself, I queued for three days,

744
00:38:01,960 --> 00:38:06,440
Speaker 12: which maybe sounds like a terribly boring thing to do,

745
00:38:06,480 --> 00:38:08,600
Speaker 12: but it's actually great fun. And then eventually I got

746
00:38:08,640 --> 00:38:11,840
Speaker 12: my ticket and the ticket came to princely some of

747
00:38:11,880 --> 00:38:15,960
Speaker 12: eight hundred per seas, which was equivalent to four pounds

748
00:38:16,000 --> 00:38:20,239
Speaker 12: and fifteen pence. I guessed around about five US dollars.

749
00:38:20,640 --> 00:38:24,320
Speaker 2: It's changed a bit now, it sure has. A recent

750
00:38:24,360 --> 00:38:27,319
Speaker 2: Economist report found that tickets for this year's World Cup

751
00:38:27,440 --> 00:38:30,799
Speaker 2: dwarf previous versions of the event. The list price for

752
00:38:30,880 --> 00:38:33,479
Speaker 2: the final match is much higher than that of other

753
00:38:33,600 --> 00:38:37,719
Speaker 2: marquee sports fixtures, including the Super Bowl, and that's the

754
00:38:37,960 --> 00:38:42,400
Speaker 2: list price on FIFA's official resale platform. Tickets for the

755
00:38:42,440 --> 00:38:45,640
Speaker 2: final are going for far beyond face value, with the

756
00:38:45,760 --> 00:38:48,000
Speaker 2: organizer taking a thirty percent cut.

757
00:38:48,520 --> 00:38:53,479
Speaker 13: Six million people all over the world will watch the.

758
00:38:54,080 --> 00:38:58,400
Speaker 2: It's little wonder that FIFA head Johnny Infantino expects overall

759
00:38:58,480 --> 00:39:03,680
Speaker 2: revenue to break the record, reaching over eleven billion dollars,

760
00:39:04,400 --> 00:39:07,360
Speaker 2: reading some to question when enough is enough.

761
00:39:07,440 --> 00:39:10,080
Speaker 13: I guess my advice to Jihannny Infantina, We'll just make

762
00:39:10,120 --> 00:39:12,880
Speaker 13: it seven or eight billion and put a few billion

763
00:39:13,000 --> 00:39:15,759
Speaker 13: back to make this what it should be, which is

764
00:39:15,800 --> 00:39:18,520
Speaker 13: a very accessible and inclusive World Cup.

765
00:39:18,680 --> 00:39:22,040
Speaker 2: Peter Moore is the former CEO of Liverpool Football Club

766
00:39:22,320 --> 00:39:24,720
Speaker 2: and is now part of the ownership group of football

767
00:39:24,719 --> 00:39:26,800
Speaker 2: teams in California and Poland.

768
00:39:27,040 --> 00:39:29,120
Speaker 13: This World Cup it feels a little different, to say

769
00:39:29,120 --> 00:39:31,360
Speaker 13: the least, because I don't think it's accessible. This is

770
00:39:31,360 --> 00:39:35,000
Speaker 13: the world's game. This should be a platform for everybody

771
00:39:35,080 --> 00:39:37,319
Speaker 13: that loves the game all around the world to be

772
00:39:37,320 --> 00:39:40,200
Speaker 13: able to come to afford to come, as they've done

773
00:39:40,360 --> 00:39:42,520
Speaker 13: in all of the previous World Cups, and I've been

774
00:39:42,560 --> 00:39:45,880
Speaker 13: fortunate to attend six World Cups. But we've got the

775
00:39:45,960 --> 00:39:50,440
Speaker 13: issues of dynamic pricing, the secondary market, and basically, I

776
00:39:50,480 --> 00:39:53,959
Speaker 13: think Fifas decided that this World Cup is where they're

777
00:39:54,000 --> 00:39:57,680
Speaker 13: going to make a stated eleven billion dollars and make

778
00:39:57,719 --> 00:40:01,000
Speaker 13: this a very exclusive World Cup than what it should be,

779
00:40:01,040 --> 00:40:03,200
Speaker 13: which is an incredibly inclusive World Cup.

780
00:40:03,560 --> 00:40:06,560
Speaker 2: The idea of leaving a few billion dollars in potential

781
00:40:06,600 --> 00:40:09,440
Speaker 2: revenue on the table might not be a sound strategy

782
00:40:09,560 --> 00:40:13,240
Speaker 2: for most businesses, but more says sports are different.

783
00:40:13,400 --> 00:40:16,400
Speaker 13: Football has changed since I first went to anfield with

784
00:40:16,440 --> 00:40:19,400
Speaker 13: my dad in nineteen fifty nine. It's a very different economy.

785
00:40:19,680 --> 00:40:22,799
Speaker 13: In those days, it was his five shillings through the

786
00:40:22,840 --> 00:40:25,719
Speaker 13: turnstile and you go and you stand on the terraces.

787
00:40:26,080 --> 00:40:29,120
Speaker 13: Now it's a multi hundred billion dollar business worldwide. And

788
00:40:29,160 --> 00:40:31,680
Speaker 13: I get that, but you've got to balance out the

789
00:40:31,760 --> 00:40:34,399
Speaker 13: fact that the people who made this game, the world's game,

790
00:40:34,680 --> 00:40:37,640
Speaker 13: is the average jack and Jill on the street, and

791
00:40:37,880 --> 00:40:41,040
Speaker 13: it's not the corporate hospitality and what we love about

792
00:40:41,080 --> 00:40:42,920
Speaker 13: the game, what we love about World Cups is the

793
00:40:43,239 --> 00:40:45,480
Speaker 13: passion that comes from the stands. So it's not just

794
00:40:46,200 --> 00:40:49,520
Speaker 13: filling stadiums with people, it's the right people and by

795
00:40:49,560 --> 00:40:53,239
Speaker 13: that the average football fan who will have a trip

796
00:40:53,280 --> 00:40:55,880
Speaker 13: of a lifetime to the United States, Canada and Mexico.

797
00:40:56,560 --> 00:40:59,399
Speaker 13: And you need to respect the fact that they've got

798
00:40:59,400 --> 00:41:02,480
Speaker 13: this dream to do it. But right now I worry

799
00:41:03,040 --> 00:41:06,000
Speaker 13: very much that there are hundreds of thousands of not millions,

800
00:41:06,040 --> 00:41:08,040
Speaker 13: of tickets in the wrong hands. And by the say

801
00:41:08,080 --> 00:41:12,120
Speaker 13: the wrong hands, it's people who are speculators, typed scalpers

802
00:41:12,160 --> 00:41:15,920
Speaker 13: that are looking They see these tickets as a fungible

803
00:41:15,960 --> 00:41:19,040
Speaker 13: asset that they can make money on, rather than the

804
00:41:19,120 --> 00:41:22,400
Speaker 13: precious seat at the world's game. It's a bigger issue

805
00:41:22,400 --> 00:41:25,480
Speaker 13: for football in general is that it's becoming more expensive.

806
00:41:25,680 --> 00:41:27,640
Speaker 13: You've got an older fan who maybe has had that

807
00:41:27,719 --> 00:41:30,480
Speaker 13: season ticket for thirty forty years. It's the issue of

808
00:41:30,520 --> 00:41:34,520
Speaker 13: how do you maintain the ability for multi generational support.

809
00:41:34,600 --> 00:41:36,640
Speaker 13: My granddad was a Liverpool fan, My dad was a

810
00:41:36,719 --> 00:41:39,840
Speaker 13: Liverpool fan. I'm obviously a Liverpool fan, but more and

811
00:41:39,880 --> 00:41:43,440
Speaker 13: more people are somewhat being priced out and the energy

812
00:41:43,480 --> 00:41:46,879
Speaker 13: in the stadium for bluntly an older demographic if you will,

813
00:41:47,000 --> 00:41:49,960
Speaker 13: rather than the younger demographic that I grew up with

814
00:41:50,440 --> 00:41:52,920
Speaker 13: is starting to dwindle, and so you've got to find

815
00:41:52,920 --> 00:41:56,520
Speaker 13: ways of allowing people to bring the energy, the passion,

816
00:41:56,600 --> 00:41:59,680
Speaker 13: the excitement, the singing back in there and can afford

817
00:41:59,719 --> 00:42:00,200
Speaker 13: to do so.

818
00:42:01,440 --> 00:42:04,880
Speaker 2: It's not just the so called beautiful game either. Sports

819
00:42:04,880 --> 00:42:08,680
Speaker 2: team valuations are soaring and investors are seeing opportunities in

820
00:42:08,719 --> 00:42:12,600
Speaker 2: a wide range of sports, from basketball to cricket, from

821
00:42:12,680 --> 00:42:16,600
Speaker 2: baseball to pickleball. Kathy Carter has spent her career in

822
00:42:16,640 --> 00:42:20,480
Speaker 2: commercial roles in sports, from the nineteen ninety four FIFA

823
00:42:20,600 --> 00:42:23,880
Speaker 2: World Cup until recently as the former CEO of the

824
00:42:24,040 --> 00:42:25,719
Speaker 2: LA twenty twenty eight Olympics.

825
00:42:25,840 --> 00:42:29,279
Speaker 14: We obviously all know that we've seen a massive disruption

826
00:42:29,440 --> 00:42:32,640
Speaker 14: and media in our country and quite frankly across the globe,

827
00:42:32,680 --> 00:42:35,640
Speaker 14: and so you know, you have different ways and micro

828
00:42:35,719 --> 00:42:40,600
Speaker 14: communities that actually follow different either sports teams or communities

829
00:42:40,640 --> 00:42:43,719
Speaker 14: that are developed around whatever the content might be. And

830
00:42:43,760 --> 00:42:48,480
Speaker 14: I'd say that has both complicated and also given opportunity

831
00:42:48,560 --> 00:42:51,440
Speaker 14: to the World Cup to what is actually happening this summer.

832
00:42:51,960 --> 00:42:54,480
Speaker 14: But it does mean that there are so many ways

833
00:42:54,520 --> 00:42:58,120
Speaker 14: that companies or fans can engage with the game and

834
00:42:58,200 --> 00:43:00,520
Speaker 14: creates what you what you might say say is this

835
00:43:00,600 --> 00:43:04,120
Speaker 14: groundswell of commercial support for the event and in some

836
00:43:04,200 --> 00:43:07,640
Speaker 14: cases so much more money that's at stake, both in

837
00:43:07,719 --> 00:43:12,680
Speaker 14: terms of media rights. Obviously we can talk about the ticketing, sponsorship, merchandise.

838
00:43:12,760 --> 00:43:16,000
Speaker 14: I mean, just we're at a scale that is very

839
00:43:16,000 --> 00:43:18,760
Speaker 14: different in nineteen ninety four, we are introducing the game,

840
00:43:19,360 --> 00:43:22,839
Speaker 14: and now I would say that from a World Cup standpoint,

841
00:43:23,080 --> 00:43:25,719
Speaker 14: FIFA is really saying, how do we now maximize the

842
00:43:25,760 --> 00:43:29,520
Speaker 14: opportunity so we can take dollars and redistribute those dollars.

843
00:43:29,320 --> 00:43:29,960
Speaker 9: Around the world.

844
00:43:30,360 --> 00:43:34,960
Speaker 2: You mentioned several revenue sources ticket sales, media rights, merchandising,

845
00:43:35,600 --> 00:43:39,520
Speaker 2: corporate sponsorships. Have they grown together or have some become

846
00:43:39,640 --> 00:43:40,680
Speaker 2: larger than others?

847
00:43:41,080 --> 00:43:45,640
Speaker 14: Well, listen, I'd say media rights is historically the major

848
00:43:45,880 --> 00:43:49,359
Speaker 14: or the number one revenue source, and this particular World Cup,

849
00:43:49,400 --> 00:43:52,080
Speaker 14: given the number of tickets and certainly the pricing on

850
00:43:52,120 --> 00:43:54,600
Speaker 14: the games, that is going to break all records. I

851
00:43:54,640 --> 00:43:57,239
Speaker 14: would say that the FIFA World Cup Final, there's no

852
00:43:57,360 --> 00:43:59,680
Speaker 14: question in my mind that will become the largest gate

853
00:43:59,719 --> 00:44:02,279
Speaker 14: in the history of any sort of event that's ever

854
00:44:02,320 --> 00:44:05,640
Speaker 14: been produced, just by virtue of the premium opportunities and

855
00:44:05,680 --> 00:44:07,360
Speaker 14: the overall ticket pricing, et cetera.

856
00:44:09,520 --> 00:44:12,200
Speaker 2: Well, many fans will gripe about the cost of tickets

857
00:44:12,200 --> 00:44:15,399
Speaker 2: to attend matches. Carter says, the money made can go

858
00:44:15,440 --> 00:44:19,400
Speaker 2: towards making the sport bigger and yes better in the

859
00:44:19,440 --> 00:44:20,000
Speaker 2: long run.

860
00:44:20,360 --> 00:44:23,880
Speaker 14: We're a capitalist economy, and you know, we subscribe to

861
00:44:24,480 --> 00:44:27,480
Speaker 14: the adage of supply and demand. I do believe that

862
00:44:27,520 --> 00:44:29,920
Speaker 14: we will see many kids and many families that will

863
00:44:29,920 --> 00:44:31,719
Speaker 14: still be able to go. I think it'll be through

864
00:44:31,719 --> 00:44:34,480
Speaker 14: different routes, but by the same token, you know, there

865
00:44:34,600 --> 00:44:37,280
Speaker 14: is a there is a market in this country for events.

866
00:44:37,320 --> 00:44:40,400
Speaker 14: There's a market in this country to buy premium and

867
00:44:40,440 --> 00:44:44,000
Speaker 14: I'd say we're seeing what the actual ceiling on that

868
00:44:44,440 --> 00:44:46,319
Speaker 14: might be as a result of this World Cup.

869
00:44:46,560 --> 00:44:49,480
Speaker 2: Where does the money go? I mean, in other American

870
00:44:49,480 --> 00:44:52,200
Speaker 2: professional sports it goes, frankly, a lot of to the players,

871
00:44:52,360 --> 00:44:54,439
Speaker 2: they get paid an awful lot of money, and then

872
00:44:54,640 --> 00:44:56,680
Speaker 2: into the owners and the values of the team.

873
00:44:56,760 --> 00:44:58,160
Speaker 3: Where does it go in the World Cup?

874
00:44:58,440 --> 00:45:00,400
Speaker 14: Yeah, so that's a great question. You know, a lot

875
00:45:00,440 --> 00:45:02,879
Speaker 14: of it is in support of the teams that do

876
00:45:02,960 --> 00:45:05,640
Speaker 14: make it and participate, and in some cases that funds

877
00:45:05,680 --> 00:45:08,360
Speaker 14: an awful lot of their youth development programs some of

878
00:45:08,360 --> 00:45:11,960
Speaker 14: the smaller countries. It allows federations across the world to

879
00:45:12,000 --> 00:45:14,319
Speaker 14: invest in the game and in the grassroots game in

880
00:45:14,360 --> 00:45:17,799
Speaker 14: their countries, but it also then a disproportionate amount will

881
00:45:17,800 --> 00:45:20,920
Speaker 14: stay with FIFA, which then goes into what they do

882
00:45:21,000 --> 00:45:23,279
Speaker 14: to help grow the game across the world, and whether

883
00:45:23,320 --> 00:45:27,200
Speaker 14: that is investing in women's soccer is a great example,

884
00:45:27,280 --> 00:45:29,959
Speaker 14: and what they've done to build the FIFA Women's World

885
00:45:30,000 --> 00:45:34,279
Speaker 14: Cup into a much more significant and revenue generating and

886
00:45:34,360 --> 00:45:37,800
Speaker 14: really the level of exposure for the women's game starts

887
00:45:37,800 --> 00:45:41,080
Speaker 14: to create opportunity for women that perhaps didn't exist before.

888
00:45:41,400 --> 00:45:43,800
Speaker 14: And you could say that across many different areas, whether

889
00:45:43,840 --> 00:45:46,960
Speaker 14: that's in the youth space, or that's in the Paralympic

890
00:45:47,040 --> 00:45:50,240
Speaker 14: space where you've got cerebral palsy teams, you've got beach soccer.

891
00:45:50,280 --> 00:45:53,120
Speaker 14: So there's a lot of ways that they will contribute

892
00:45:53,160 --> 00:45:56,840
Speaker 14: money to help the federations around the world continue to

893
00:45:56,840 --> 00:45:59,839
Speaker 14: provide opportunity for kids and for those that are coming

894
00:46:00,120 --> 00:46:00,920
Speaker 14: through the system.

895
00:46:01,040 --> 00:46:04,279
Speaker 2: If you will, both Carter and more agree to keep

896
00:46:04,400 --> 00:46:07,200
Speaker 2: up in the world of sports, like in business, you

897
00:46:07,360 --> 00:46:10,320
Speaker 2: need to be strong commercially, but you also need to

898
00:46:10,400 --> 00:46:13,839
Speaker 2: keep the next generation engaged. And although there may be

899
00:46:13,880 --> 00:46:16,360
Speaker 2: a market for the high priced tickets in the United States,

900
00:46:16,920 --> 00:46:19,800
Speaker 2: more worries that the pricing might tarnish the World Cup's

901
00:46:19,840 --> 00:46:23,080
Speaker 2: legacy and damage future tournaments.

902
00:46:22,800 --> 00:46:26,640
Speaker 13: When the stadium has become soulless, where there's no real atmosphere,

903
00:46:26,680 --> 00:46:29,600
Speaker 13: where it becomes I'm going to an event that I

904
00:46:29,680 --> 00:46:32,400
Speaker 13: want to go to because it seems like fun, rather

905
00:46:32,440 --> 00:46:35,040
Speaker 13: than this is my team, This was my dad's team,

906
00:46:35,160 --> 00:46:37,680
Speaker 13: this was my granddad's team. I live and die for

907
00:46:37,719 --> 00:46:40,920
Speaker 13: this team. They mean everything to me. My mood, my

908
00:46:41,000 --> 00:46:44,200
Speaker 13: personality is based on whether we win or lose. Those

909
00:46:44,239 --> 00:46:46,919
Speaker 13: fans are being priced out and that is a long

910
00:46:47,040 --> 00:46:49,680
Speaker 13: term price to pay that sports will have to deal

911
00:46:49,719 --> 00:46:52,279
Speaker 13: with in the future. If these pricing structures stay the.

912
00:46:52,320 --> 00:46:56,560
Speaker 2: Same as the football gets underway, more hopes the tournament

913
00:46:56,640 --> 00:46:59,520
Speaker 2: is remembered for the action on the field and not

914
00:46:59,760 --> 00:47:03,000
Speaker 2: for the cost of admission as for whether he's attending.

915
00:47:03,200 --> 00:47:05,120
Speaker 13: You know what I did. I bought one hundred inch

916
00:47:05,200 --> 00:47:07,400
Speaker 13: TV for half of the price of an England ticket

917
00:47:07,440 --> 00:47:11,000
Speaker 13: against Croatia and I know this works. Seriously I did.

918
00:47:11,080 --> 00:47:13,759
Speaker 13: I went to Best buy. I rationalize that this is

919
00:47:13,800 --> 00:47:15,759
Speaker 13: half of the price of a Category three ticket to

920
00:47:15,800 --> 00:47:18,759
Speaker 13: watch England against Croatia, and I bought one hundred inch TV.

921
00:47:19,440 --> 00:47:23,320
Speaker 2: With all the commercial deals and billions in revenue, modern

922
00:47:23,320 --> 00:47:26,840
Speaker 2: football can feel like a complex game, but the secret

923
00:47:26,960 --> 00:47:28,799
Speaker 2: may lie in the simplicity.

924
00:47:28,960 --> 00:47:30,479
Speaker 14: At the end of the day, it's still eleven guys

925
00:47:30,480 --> 00:47:32,560
Speaker 14: in shorts and a soccer ball. I mean, that's the

926
00:47:32,560 --> 00:47:35,000
Speaker 14: beauty of the game. I mean, and it's they often say,

927
00:47:35,480 --> 00:47:39,160
Speaker 14: in its simplicity. It's what makes it complex. And so

928
00:47:39,800 --> 00:47:42,240
Speaker 14: you know, I believe once the national anthems get played

929
00:47:42,680 --> 00:47:45,200
Speaker 14: and the ball is put in the middle of the field,

930
00:47:45,920 --> 00:47:48,720
Speaker 14: it's just eleven guys playing against the other eleven guys.

931
00:47:51,120 --> 00:47:52,799
Speaker 2: That does it for us. Here at Wall Street Week,

932
00:47:53,040 --> 00:47:56,080
Speaker 2: I'm David Weston. See you next week for more stories

933
00:47:56,120 --> 00:48:06,040
Speaker 2: of capitalism.