1 00:00:06,080 --> 00:00:09,920 Speaker 1: Welcome to another episode of the Strictly Business Podcast. My 2 00:00:09,960 --> 00:00:14,520 Speaker 1: guest today is Rezazad, CEO of Studio seventy one. A 3 00:00:14,600 --> 00:00:17,560 Speaker 1: company may not know by name, but chances are the 4 00:00:17,600 --> 00:00:20,160 Speaker 1: young people in your life know the digital native stars 5 00:00:20,160 --> 00:00:24,320 Speaker 1: and the Studio seventy one roster like Lily Sing, Roman 6 00:00:24,320 --> 00:00:27,400 Speaker 1: Atwood and Rent and Link. They helped the company drive 7 00:00:27,480 --> 00:00:30,720 Speaker 1: billions of video views online. We're building a business on 8 00:00:30,760 --> 00:00:34,159 Speaker 1: all those eyeballs. Has never been easy, but Azad is 9 00:00:34,200 --> 00:00:37,080 Speaker 1: a veteran of the digital video world who has steered 10 00:00:37,120 --> 00:00:40,160 Speaker 1: Studio seventy one and some innovative directions that we'll talk about. 11 00:00:42,479 --> 00:00:44,680 Speaker 1: Thanks for coming in, Reso, Thanks for having me. So 12 00:00:44,760 --> 00:00:48,440 Speaker 1: let's do some level settings Studio seventy one. It's not 13 00:00:48,520 --> 00:00:52,560 Speaker 1: as simple as just selling ads against video. No, there's 14 00:00:52,600 --> 00:00:55,040 Speaker 1: a lot more to it than that. But um, we're 15 00:00:55,120 --> 00:00:58,520 Speaker 1: essentially one of the world's largest distributors and producers of 16 00:00:58,520 --> 00:01:04,480 Speaker 1: short form content, and so you'll see our stuff on YouTube, Instagram, Snapchat, Facebook, 17 00:01:05,120 --> 00:01:07,520 Speaker 1: and we are essentially a B two B brand, so 18 00:01:07,520 --> 00:01:09,959 Speaker 1: you may be watching our content so like on YouTube 19 00:01:09,959 --> 00:01:12,520 Speaker 1: every month, about one and three Americans watch an hour 20 00:01:12,560 --> 00:01:14,919 Speaker 1: and a half of our content every month. Our brand 21 00:01:14,959 --> 00:01:17,280 Speaker 1: does not follow. It's a lot of our partners or 22 00:01:17,360 --> 00:01:21,399 Speaker 1: content or brands that are housed within sort of um 23 00:01:21,720 --> 00:01:24,679 Speaker 1: our group. So we're some of those brands are world 24 00:01:24,680 --> 00:01:27,440 Speaker 1: Star hip hop is a good example. You just listed 25 00:01:27,520 --> 00:01:29,920 Speaker 1: a bunch that are you know, really powerful. I think 26 00:01:30,080 --> 00:01:32,559 Speaker 1: you know, the Fine Brothers were producing a show called 27 00:01:32,600 --> 00:01:34,639 Speaker 1: This Might Get So there's there's a bunch of content. 28 00:01:34,680 --> 00:01:36,560 Speaker 1: It's coming from a lot of places. I mean, every 29 00:01:36,600 --> 00:01:40,080 Speaker 1: month we're publishing a little over twelve thousand pieces of 30 00:01:40,160 --> 00:01:44,320 Speaker 1: video content just on YouTube, and another when it's all 31 00:01:44,640 --> 00:01:47,680 Speaker 1: sliced and diced, another thirty or forty thousand pieces across 32 00:01:47,720 --> 00:01:50,320 Speaker 1: the rest of the web. Um So it's it's a 33 00:01:50,400 --> 00:01:53,360 Speaker 1: huge volume of content that we're putting out there. So 34 00:01:54,000 --> 00:01:56,160 Speaker 1: give me your sense of where we stand right now 35 00:01:56,240 --> 00:02:01,400 Speaker 1: here in mid to late in this digital video ego system, 36 00:02:01,440 --> 00:02:04,320 Speaker 1: which seems to me to be you know, pretty stormy weather. 37 00:02:04,600 --> 00:02:08,240 Speaker 1: Absolutely like if you look at it in the the macro, 38 00:02:08,639 --> 00:02:10,760 Speaker 1: it's all up and to the left, but when you 39 00:02:10,760 --> 00:02:13,799 Speaker 1: look at it in yearly Micro's it's it's a very 40 00:02:13,919 --> 00:02:17,400 Speaker 1: very tough business. Um I think a lot of our 41 00:02:17,440 --> 00:02:20,560 Speaker 1: competitors and ourselves you know as well, have had to 42 00:02:20,639 --> 00:02:23,480 Speaker 1: really level set what this business is. So I came 43 00:02:23,520 --> 00:02:26,200 Speaker 1: from the you know, the management side of the business, 44 00:02:26,240 --> 00:02:28,040 Speaker 1: as a lot of people who entered in from tech 45 00:02:28,080 --> 00:02:30,239 Speaker 1: and other sort of traditional players of it. Well, we'll 46 00:02:30,240 --> 00:02:32,959 Speaker 1: talk a bit about that because the history of TWODO 47 00:02:33,000 --> 00:02:35,840 Speaker 1: seventy one is interesting. You started as a management company. 48 00:02:35,880 --> 00:02:38,360 Speaker 1: We were the collective. There was a management firm. We 49 00:02:38,400 --> 00:02:42,160 Speaker 1: had about hundred and twenty employees, and we represented Lincoln 50 00:02:42,160 --> 00:02:44,880 Speaker 1: Park and Kanye West, a lot of music talent plus 51 00:02:45,320 --> 00:02:48,160 Speaker 1: you know, mainstream actors like Emil Hirsch and Martin Lawrence 52 00:02:48,200 --> 00:02:50,040 Speaker 1: and a bunch of folks like that. So yeah, it 53 00:02:50,160 --> 00:02:54,960 Speaker 1: started with that foundation. So it was talent first, was 54 00:02:55,000 --> 00:02:57,800 Speaker 1: the foundation, and the thesis of the business was that 55 00:02:57,919 --> 00:03:01,560 Speaker 1: all this disintermediation that was happening. So when Michael Green 56 00:03:01,680 --> 00:03:04,480 Speaker 1: started the company after the firm, it's like mid two 57 00:03:04,520 --> 00:03:09,120 Speaker 1: thousand's and you know, the there was I think my 58 00:03:09,240 --> 00:03:11,480 Speaker 1: Space was around. I think a lot of these earth 59 00:03:11,560 --> 00:03:14,720 Speaker 1: platforms that we're talking about today we're just emerging, and 60 00:03:14,760 --> 00:03:18,000 Speaker 1: it was clear that there was gonna be a way 61 00:03:18,040 --> 00:03:21,520 Speaker 1: that talented people could go direct to consumer. Um, we 62 00:03:21,600 --> 00:03:23,400 Speaker 1: thought it was going to happen in music. That's why 63 00:03:23,440 --> 00:03:26,120 Speaker 1: we had such a large emphasis in music because of 64 00:03:26,160 --> 00:03:30,560 Speaker 1: the disruption of Napster and iTunes and whatnot. Um. But 65 00:03:30,639 --> 00:03:33,240 Speaker 1: the reality is, for us, it happened actually in digital video. 66 00:03:33,240 --> 00:03:36,200 Speaker 1: That's where we saw the biggest opportunity to sort of 67 00:03:36,200 --> 00:03:39,560 Speaker 1: grow a business. And once we figured that out, UM, 68 00:03:39,640 --> 00:03:43,080 Speaker 1: Michael was very clear, um in terms of let's let's 69 00:03:43,080 --> 00:03:45,840 Speaker 1: make that our core sort of mission. So it was 70 00:03:45,920 --> 00:03:47,760 Speaker 1: kind of like a pivot at birth. It was a 71 00:03:47,760 --> 00:03:50,840 Speaker 1: pretty interesting pivot. Yeah, we've been the management firm for 72 00:03:50,880 --> 00:03:54,720 Speaker 1: about six or eight years. Um, we identified that we 73 00:03:54,720 --> 00:03:58,120 Speaker 1: were gonna there was this hyper growth opportunity. Took us 74 00:03:58,120 --> 00:04:01,960 Speaker 1: about two years to sort of really unwind the management business. 75 00:04:02,040 --> 00:04:06,720 Speaker 1: But that's essentially what happened. And fast forward to you know, 76 00:04:06,760 --> 00:04:10,320 Speaker 1: we talked about the stormy weathers. How are you running 77 00:04:10,360 --> 00:04:14,040 Speaker 1: a diversified business, talk about the different ways you're making money, 78 00:04:14,040 --> 00:04:17,320 Speaker 1: because diversification it seems like if you don't do that today, 79 00:04:17,320 --> 00:04:22,200 Speaker 1: you're dead. Um. So look, the irony is last year 80 00:04:22,200 --> 00:04:24,800 Speaker 1: it was brand safety. This year, what you're seeing is 81 00:04:24,839 --> 00:04:27,240 Speaker 1: the impact of all these O T T players that 82 00:04:27,240 --> 00:04:29,120 Speaker 1: went out of business at the end of last year 83 00:04:29,640 --> 00:04:31,880 Speaker 1: really sort of choking a lot of the economics of 84 00:04:31,880 --> 00:04:34,800 Speaker 1: the ecosystem. So when you look at the business, it's 85 00:04:35,200 --> 00:04:39,440 Speaker 1: you've got to have a very large, scalable advertising business play, 86 00:04:39,600 --> 00:04:41,680 Speaker 1: which means you have to be good at media and 87 00:04:41,720 --> 00:04:44,919 Speaker 1: packaging media as part of what you do. Branded content 88 00:04:45,040 --> 00:04:47,960 Speaker 1: is an adjacent sort of business that that is, you know, 89 00:04:48,080 --> 00:04:50,440 Speaker 1: rides alongside that, and those are big parts of what 90 00:04:50,480 --> 00:04:52,240 Speaker 1: we do and where we've spent a lot of time. 91 00:04:52,600 --> 00:04:55,960 Speaker 1: And then you have to understand I P UM and 92 00:04:55,960 --> 00:04:59,000 Speaker 1: and content creation. UM. That's how we actually fell into 93 00:04:59,000 --> 00:05:01,359 Speaker 1: the business was we co produced the Fred movies with 94 00:05:01,400 --> 00:05:04,520 Speaker 1: Brian Robbins and then did the Annoying Orange and video 95 00:05:04,520 --> 00:05:06,880 Speaker 1: game High School, so we started you know, I P 96 00:05:07,160 --> 00:05:09,880 Speaker 1: was central to what we were doing. UM, what we've 97 00:05:09,880 --> 00:05:12,480 Speaker 1: seen in the last year is a shrinkage of that market. 98 00:05:12,560 --> 00:05:14,920 Speaker 1: So when Go ninety goes out of business and see 99 00:05:15,000 --> 00:05:18,120 Speaker 1: so and watch a bowl and there's a much longer 100 00:05:18,160 --> 00:05:21,400 Speaker 1: list than that, UM, you get contraction, which is sort 101 00:05:21,440 --> 00:05:24,680 Speaker 1: of what we're seeing here. Last year the struggle was 102 00:05:24,960 --> 00:05:29,400 Speaker 1: navigating through UM the brand safety issues that we're running 103 00:05:29,400 --> 00:05:33,320 Speaker 1: havoc that I think still continue to sort of Yeah, 104 00:05:33,400 --> 00:05:37,159 Speaker 1: talk about the ecosystem, talk about how studio seventy one 105 00:05:37,480 --> 00:05:41,000 Speaker 1: encountered all that, my guesses, is a lot of technology 106 00:05:41,040 --> 00:05:45,039 Speaker 1: at work now to make sure that marketers are protected 107 00:05:45,080 --> 00:05:47,919 Speaker 1: when they're placing their dollars with you. We we built 108 00:05:47,920 --> 00:05:50,480 Speaker 1: a tool called Studio seventy one context and so it's 109 00:05:50,520 --> 00:05:53,560 Speaker 1: not just technology, it's technology and people. So when when 110 00:05:53,560 --> 00:05:56,040 Speaker 1: you release, you know, we'll call it fifteen. And we're 111 00:05:56,160 --> 00:05:59,440 Speaker 1: very focused today on YouTube media. I think that will 112 00:05:59,520 --> 00:06:02,760 Speaker 1: change over time. Um, but when you're focused on on 113 00:06:02,800 --> 00:06:05,640 Speaker 1: a platform like that, you have that much of a 114 00:06:05,680 --> 00:06:08,159 Speaker 1: sort of a release schedule, you can't have a traditional 115 00:06:08,360 --> 00:06:12,599 Speaker 1: standards and practices department. People go insane. So what we 116 00:06:12,600 --> 00:06:15,600 Speaker 1: had to do is build technology that would actually avoid 117 00:06:15,640 --> 00:06:19,240 Speaker 1: out videos that we know are not brand safe. And 118 00:06:19,320 --> 00:06:22,680 Speaker 1: there's the parameters. I think the market in terms of 119 00:06:22,680 --> 00:06:25,640 Speaker 1: just brand safety. Maybe this is the big topic is 120 00:06:25,680 --> 00:06:28,719 Speaker 1: what is brand safety? Is the first thing that's that 121 00:06:28,800 --> 00:06:31,960 Speaker 1: I think is unclear in this market. And so I 122 00:06:32,000 --> 00:06:35,960 Speaker 1: think everyone's in agreement that hates speech and you know, 123 00:06:36,240 --> 00:06:40,359 Speaker 1: things along that line, maybe overtly sexual pedophilia, you know, 124 00:06:40,400 --> 00:06:42,640 Speaker 1: all the things that are just beyond the pale that 125 00:06:42,720 --> 00:06:45,080 Speaker 1: that stuff is easy, but when you get into the 126 00:06:45,120 --> 00:06:49,120 Speaker 1: rest of it is is you know the effort, Okay, 127 00:06:49,279 --> 00:06:51,880 Speaker 1: how sexual can the content be? All that sort of stuff, 128 00:06:51,920 --> 00:06:55,200 Speaker 1: And given the market swung so heavy in one direction, 129 00:06:55,240 --> 00:06:57,800 Speaker 1: we decided to take attacked with context that we were 130 00:06:57,839 --> 00:07:00,400 Speaker 1: going to make a sort of PG thirteen and G 131 00:07:00,760 --> 00:07:04,960 Speaker 1: rated products. So it's very very safe, not unlike primetime 132 00:07:05,080 --> 00:07:09,200 Speaker 1: network tv UM and in some cases maybe even less 133 00:07:09,240 --> 00:07:12,320 Speaker 1: so like less edgy UM. And so what that product 134 00:07:12,320 --> 00:07:16,440 Speaker 1: does through two means of technology and then people on 135 00:07:16,480 --> 00:07:20,440 Speaker 1: the technology side, we take all the text data that 136 00:07:20,480 --> 00:07:24,240 Speaker 1: comes off, including including closed caption, and then we use 137 00:07:24,760 --> 00:07:28,320 Speaker 1: some image recognition software that Amazon and Google. We prefer 138 00:07:28,400 --> 00:07:32,200 Speaker 1: the Google product where we scan all our videos for 139 00:07:32,280 --> 00:07:35,480 Speaker 1: drug paraphernalia, guns and all the usual stuff. And this 140 00:07:35,480 --> 00:07:38,360 Speaker 1: stuff works. The stuff work is is actually very accurate, 141 00:07:38,480 --> 00:07:41,760 Speaker 1: but what drives the accuracy is actually people. So then 142 00:07:41,880 --> 00:07:44,240 Speaker 1: we so we we discount a lot of stuff. So 143 00:07:44,280 --> 00:07:47,400 Speaker 1: you say a bad word, there's guns, or there's something 144 00:07:47,400 --> 00:07:50,080 Speaker 1: that we find objection able, you're already self selected out. 145 00:07:50,400 --> 00:07:53,480 Speaker 1: So in theory, what what the people that are working 146 00:07:53,480 --> 00:07:55,400 Speaker 1: for us, since a team of about twenty people are 147 00:07:55,480 --> 00:07:59,240 Speaker 1: looking at are things that we think our brand sake, 148 00:07:59,280 --> 00:08:02,560 Speaker 1: but we don't. Peter doesn't know yet. And so we 149 00:08:02,600 --> 00:08:06,680 Speaker 1: have about twenty twenty sort of data points that we 150 00:08:06,800 --> 00:08:09,960 Speaker 1: try to add and and can try to contextualize, so 151 00:08:10,120 --> 00:08:13,200 Speaker 1: like contextualizing a gun. So there's a radar gun, there's 152 00:08:13,200 --> 00:08:15,640 Speaker 1: a NERF gun, and then there's a handgun that's been 153 00:08:15,760 --> 00:08:19,960 Speaker 1: used in a violent act, all very differently different um 154 00:08:19,960 --> 00:08:22,200 Speaker 1: sort of outcomes in terms of brand safety. And so 155 00:08:22,480 --> 00:08:25,200 Speaker 1: the people are trying to train the computers what those are, 156 00:08:25,200 --> 00:08:28,320 Speaker 1: and hopefully they're selecting more and more stuff that's just safe. 157 00:08:28,360 --> 00:08:31,080 Speaker 1: So before we traffic in an add a person looks 158 00:08:31,080 --> 00:08:33,839 Speaker 1: at that's our final sort of step in the brand 159 00:08:33,880 --> 00:08:36,480 Speaker 1: safety process. And I would imagine this technology has got 160 00:08:36,480 --> 00:08:38,480 Speaker 1: to be table stakes at this point, for it is 161 00:08:39,120 --> 00:08:41,800 Speaker 1: table stick and and the interesting thing is there's not 162 00:08:41,840 --> 00:08:44,800 Speaker 1: that many companies that have the video scale we have 163 00:08:44,920 --> 00:08:47,960 Speaker 1: in the data we have that could actually execute or 164 00:08:47,960 --> 00:08:51,800 Speaker 1: create something like that. UM. So it's so we're not 165 00:08:51,880 --> 00:08:53,640 Speaker 1: the only ones with the product, but I think we're 166 00:08:53,679 --> 00:08:55,520 Speaker 1: one of one of two or one of three with 167 00:08:55,600 --> 00:08:58,360 Speaker 1: this type of tool in the market. But you're making 168 00:08:58,400 --> 00:09:03,760 Speaker 1: money in other ways besides advertising. I mean, even e 169 00:09:03,920 --> 00:09:06,280 Speaker 1: commerce I'm hearing is becoming part of the mixed for 170 00:09:06,360 --> 00:09:10,160 Speaker 1: you guys talk about that. So look, some let's just 171 00:09:10,200 --> 00:09:12,160 Speaker 1: talk about the core of the business. Right. It's these 172 00:09:12,160 --> 00:09:15,160 Speaker 1: talent that the talent that's creating this content. So wherever 173 00:09:15,200 --> 00:09:18,680 Speaker 1: there's an engaged audience and wherever there are people that 174 00:09:18,760 --> 00:09:22,440 Speaker 1: care about something, there's an opportunity, if done right, to 175 00:09:22,640 --> 00:09:26,960 Speaker 1: market and create merchandizing or ancillary product around around that. 176 00:09:27,000 --> 00:09:30,760 Speaker 1: And so we've been taking advantage of that opportunity for 177 00:09:30,800 --> 00:09:34,960 Speaker 1: some time. UM, we've kind of found an interesting you know, niche. 178 00:09:35,480 --> 00:09:39,000 Speaker 1: We've gotten very good at the collectible space, which is 179 00:09:39,040 --> 00:09:43,800 Speaker 1: not how I anticipated our business evolving. We have um, 180 00:09:43,840 --> 00:09:46,600 Speaker 1: we have a we have a channel called Guava Juice 181 00:09:46,600 --> 00:09:50,360 Speaker 1: where we sell toy boxes every quarter. Um. You know, 182 00:09:50,400 --> 00:09:52,959 Speaker 1: we've sold almost three or four hundred thousand of these 183 00:09:53,000 --> 00:09:56,040 Speaker 1: boxes over the last few years, and you know, we've 184 00:09:56,080 --> 00:09:57,920 Speaker 1: done very well with that. We just put out a 185 00:09:57,960 --> 00:10:00,160 Speaker 1: mobile app with them that we're about to you know, 186 00:10:00,160 --> 00:10:03,000 Speaker 1: announce a fairly large license probably you know, a deal 187 00:10:03,080 --> 00:10:06,280 Speaker 1: around so so that that business has gone very well, 188 00:10:06,280 --> 00:10:09,040 Speaker 1: but it's very much um. He speaks to a very 189 00:10:09,080 --> 00:10:12,000 Speaker 1: young audience, and these are toys every quarter than they 190 00:10:12,040 --> 00:10:14,679 Speaker 1: get in a box. UM. We have a we have 191 00:10:15,040 --> 00:10:17,760 Speaker 1: a talent called Sanite and Happiness, where a year and 192 00:10:17,760 --> 00:10:19,760 Speaker 1: a half ago we did a kickstarter with them we 193 00:10:19,800 --> 00:10:23,600 Speaker 1: did over three million in sales um and that has 194 00:10:23,800 --> 00:10:27,640 Speaker 1: that the success of that it was it was a 195 00:10:27,679 --> 00:10:30,760 Speaker 1: card game, has led us into a number of sort 196 00:10:30,760 --> 00:10:34,320 Speaker 1: of gaming opportunities. So just this past month, uh, there's 197 00:10:34,360 --> 00:10:37,640 Speaker 1: a very famous sort of indie video game called The 198 00:10:37,640 --> 00:10:40,640 Speaker 1: Binding of Isaac and we just we just completed a 199 00:10:40,640 --> 00:10:43,720 Speaker 1: massive kickstarter there. We did raised two point six million 200 00:10:43,800 --> 00:10:46,320 Speaker 1: in thirty days and we expect that to have a 201 00:10:46,360 --> 00:10:49,400 Speaker 1: fairly long distribution life in retail in a bunch of 202 00:10:49,440 --> 00:10:53,000 Speaker 1: other places. So we've actually gotten more collectible. I thought 203 00:10:53,040 --> 00:10:57,280 Speaker 1: we would have been package goods or T shirts. Our 204 00:10:57,320 --> 00:10:59,600 Speaker 1: business has grown in a in a in a different 205 00:10:59,679 --> 00:11:03,360 Speaker 1: niche and it's but it's an unpredictable business. It's hit 206 00:11:03,480 --> 00:11:06,360 Speaker 1: driven and therefore our hits have been in this space 207 00:11:06,400 --> 00:11:09,840 Speaker 1: and so that's why you know it's defined that way today. Also, 208 00:11:09,960 --> 00:11:14,680 Speaker 1: I mean you're working with influencers, which from you know, 209 00:11:14,840 --> 00:11:18,040 Speaker 1: obviously we've seen them amass some great audiences, but not 210 00:11:18,120 --> 00:11:21,960 Speaker 1: without a real struggle. There's lots of sort of industry 211 00:11:22,000 --> 00:11:24,720 Speaker 1: anecdotes about how difficult it can be to work with 212 00:11:24,760 --> 00:11:29,280 Speaker 1: town like this, how do you insulate yourself? Well, first 213 00:11:29,280 --> 00:11:32,280 Speaker 1: of all, let's just talk about this talent versus others. Right, So, 214 00:11:32,440 --> 00:11:35,840 Speaker 1: the original thesis of the collective is that disintermediation is 215 00:11:35,840 --> 00:11:38,480 Speaker 1: going to allow creative people to go direct to consumer. 216 00:11:39,520 --> 00:11:42,200 Speaker 1: That thesis when it plays out in video or in 217 00:11:42,320 --> 00:11:45,400 Speaker 1: music or in any other sort of form, essentially you 218 00:11:45,480 --> 00:11:49,240 Speaker 1: end up with a creative class that has not had 219 00:11:49,320 --> 00:11:54,200 Speaker 1: to go through all the steps and all the collaborations 220 00:11:54,240 --> 00:11:56,800 Speaker 1: that they that would normally they would normally go through 221 00:11:56,880 --> 00:12:01,319 Speaker 1: to be successful. Meaning Roseanne Are does not exist without 222 00:12:01,360 --> 00:12:04,960 Speaker 1: ABC putting her on TV and so on, right, Um, 223 00:12:05,120 --> 00:12:08,120 Speaker 1: And so therefore there's a standard there hell too that 224 00:12:08,160 --> 00:12:11,000 Speaker 1: when ABC canceled the show, it's gone and all of 225 00:12:11,000 --> 00:12:13,760 Speaker 1: that sort of stuff. On the endverse, Beauty Pie can 226 00:12:13,800 --> 00:12:18,480 Speaker 1: go around saying whatever he says, Disney can't cancel him, right, right, 227 00:12:18,520 --> 00:12:24,120 Speaker 1: so Doesny was their impact? Absolutely? But but but you 228 00:12:24,120 --> 00:12:26,200 Speaker 1: know he's able to continue on. And so in a 229 00:12:26,240 --> 00:12:31,240 Speaker 1: world without those business consequences for behavior, you definitely have 230 00:12:31,800 --> 00:12:35,800 Speaker 1: um challenges in sort of managing and working through that. 231 00:12:35,800 --> 00:12:39,200 Speaker 1: That being said, when you when you really want to 232 00:12:39,720 --> 00:12:42,319 Speaker 1: the sort of the cream sort of rises to the top. 233 00:12:42,559 --> 00:12:45,080 Speaker 1: The reality is those that are super successful, and I 234 00:12:45,080 --> 00:12:47,760 Speaker 1: know we use beauty pies an example. The reality for 235 00:12:47,800 --> 00:12:51,200 Speaker 1: the most part is that the top layers is a 236 00:12:51,440 --> 00:12:55,360 Speaker 1: fairly professional class because they have been over the last 237 00:12:55,400 --> 00:13:00,880 Speaker 1: five years working with brands, delivering on time, creating content 238 00:13:00,960 --> 00:13:03,880 Speaker 1: for third party platforms, taking notes and all of that 239 00:13:03,920 --> 00:13:06,600 Speaker 1: sort of stuff. I think where the where the tension 240 00:13:06,720 --> 00:13:12,959 Speaker 1: is is where the biggest tension is when the expectation 241 00:13:13,040 --> 00:13:16,640 Speaker 1: of the partner is not in line with the reality 242 00:13:16,679 --> 00:13:20,439 Speaker 1: of the talent. The partner being any at any third 243 00:13:20,440 --> 00:13:25,360 Speaker 1: party right. And so a TV example would be, well, 244 00:13:25,520 --> 00:13:29,040 Speaker 1: we're broadcast, we should have these rights in deal making, 245 00:13:29,160 --> 00:13:31,400 Speaker 1: or we should be able to control this because we 246 00:13:31,440 --> 00:13:34,000 Speaker 1: do with all our other on air talent, or however 247 00:13:34,080 --> 00:13:36,320 Speaker 1: that may be. The reality is you don't get that 248 00:13:36,400 --> 00:13:40,760 Speaker 1: control because as somebody who's built a massive opportunity outside 249 00:13:40,760 --> 00:13:43,600 Speaker 1: of you, or a brand that thinks they're making a 250 00:13:43,640 --> 00:13:46,640 Speaker 1: commercial when what the talent thinks is a brand of 251 00:13:46,679 --> 00:13:49,160 Speaker 1: content deal meaning you're coming into my show, you're coming 252 00:13:49,160 --> 00:13:51,680 Speaker 1: into my environment. I'm the one who's sort of going 253 00:13:51,760 --> 00:13:54,760 Speaker 1: to be lending you my credibility in the segment. That's 254 00:13:54,760 --> 00:13:58,319 Speaker 1: where a lot of the friction is um in in 255 00:13:58,320 --> 00:14:01,240 Speaker 1: in managing this sort of market place. In the branded 256 00:14:01,320 --> 00:14:03,960 Speaker 1: content side of things. It seems like a lot of 257 00:14:04,000 --> 00:14:06,480 Speaker 1: people in the industry are complaining about how chaotic that 258 00:14:06,640 --> 00:14:10,319 Speaker 1: is with regard to representation of this talent. So many 259 00:14:10,400 --> 00:14:14,640 Speaker 1: different people claiming to speak for you know, influencer X. 260 00:14:14,720 --> 00:14:16,960 Speaker 1: How do you deal with that? Oh, it's that. So 261 00:14:17,160 --> 00:14:20,240 Speaker 1: that part of the market is very high growth and 262 00:14:20,480 --> 00:14:23,600 Speaker 1: barrier to entry is almost zero, right or very limited, 263 00:14:23,640 --> 00:14:26,360 Speaker 1: So we we have whereas on the media side, on 264 00:14:26,400 --> 00:14:29,040 Speaker 1: the content side of the there's there's just much higher 265 00:14:29,600 --> 00:14:33,320 Speaker 1: barriers to entry. So it's very confusing. On two sides. 266 00:14:33,560 --> 00:14:37,480 Speaker 1: You've got I think a buyer market that has not 267 00:14:37,680 --> 00:14:41,720 Speaker 1: figured out who owns the football and in media or 268 00:14:41,760 --> 00:14:45,760 Speaker 1: in creative, in strategy and PR, there's firms that actually 269 00:14:45,840 --> 00:14:50,520 Speaker 1: own the capability and the expertise and the market knowledge. 270 00:14:51,040 --> 00:14:53,840 Speaker 1: In branded content, it could be the brand, could be 271 00:14:53,920 --> 00:14:56,120 Speaker 1: the creative agency, it could be the PR firm, it 272 00:14:56,120 --> 00:14:59,880 Speaker 1: could be some specialist. So so the fact that the 273 00:15:00,040 --> 00:15:04,520 Speaker 1: by side is so fractured is one problem. Because r 274 00:15:04,560 --> 00:15:07,320 Speaker 1: o I, which is what every CMO talks about when 275 00:15:07,320 --> 00:15:10,200 Speaker 1: they have to ask for budget and all that when 276 00:15:10,280 --> 00:15:13,440 Speaker 1: you when you disperse sort of the expertise across a 277 00:15:13,480 --> 00:15:17,000 Speaker 1: bunch of agencies, you end up with with people who 278 00:15:17,120 --> 00:15:20,680 Speaker 1: don't have the same measurement, the same expectation, the same 279 00:15:20,760 --> 00:15:24,840 Speaker 1: quality control, the same standards. So the BY side needs 280 00:15:24,880 --> 00:15:29,400 Speaker 1: to fix itself, I think first before the cell side 281 00:15:29,640 --> 00:15:34,480 Speaker 1: organizes itself and the cell side is everything goes right, 282 00:15:34,520 --> 00:15:38,040 Speaker 1: it's whoever gets the client first, and what the challenges 283 00:15:38,080 --> 00:15:41,160 Speaker 1: on the for the talent is. You know, some version 284 00:15:41,240 --> 00:15:45,000 Speaker 1: of pricing is all over the place, multiple people representing you, 285 00:15:45,120 --> 00:15:47,160 Speaker 1: and when you go back to the sort of the 286 00:15:47,240 --> 00:15:50,480 Speaker 1: perception problem that this talent may be difficult to work with. 287 00:15:51,160 --> 00:15:55,640 Speaker 1: Um nothing like a mismanaged representative in the market to 288 00:15:56,120 --> 00:15:59,640 Speaker 1: sort of further that to cement that reputation. And so 289 00:15:59,760 --> 00:16:02,200 Speaker 1: I in talent needs to take a little bit of 290 00:16:02,240 --> 00:16:05,160 Speaker 1: control in this at the moment, and I think the 291 00:16:05,200 --> 00:16:08,680 Speaker 1: BY side needs to to sort of clean itself up, 292 00:16:08,680 --> 00:16:12,600 Speaker 1: which I think over time, as things grow, um, it 293 00:16:12,720 --> 00:16:15,160 Speaker 1: will have to. So you're hopeful then for change. Well, 294 00:16:15,200 --> 00:16:18,000 Speaker 1: look two years ago it was a billion dollar business. 295 00:16:18,160 --> 00:16:19,880 Speaker 1: You know now that they're saying it's two and a 296 00:16:19,960 --> 00:16:22,320 Speaker 1: half billion, and it's growing at you know, pretty fast, 297 00:16:22,960 --> 00:16:26,440 Speaker 1: um kigers and these are you know, McKenzie and analysis 298 00:16:26,480 --> 00:16:29,840 Speaker 1: of the market. I think at some point cmos are 299 00:16:29,840 --> 00:16:32,120 Speaker 1: gonna go. You know, I can't put fifty million to 300 00:16:32,200 --> 00:16:37,280 Speaker 1: work and get like a PR response, a creative agency response, 301 00:16:37,280 --> 00:16:39,480 Speaker 1: and a media response for the same problem. This is 302 00:16:39,520 --> 00:16:42,120 Speaker 1: not and so I think everyone needs to figure out 303 00:16:42,240 --> 00:16:44,520 Speaker 1: what is it and how are they going to measure it? 304 00:16:44,760 --> 00:16:47,480 Speaker 1: And once that happens, I think I think the cell 305 00:16:47,640 --> 00:16:52,400 Speaker 1: side will also clean up. Because today anyone can get 306 00:16:52,440 --> 00:16:55,520 Speaker 1: to anyone through any door. I think that there's not 307 00:16:55,600 --> 00:16:59,160 Speaker 1: a lot of vetting going on. What's also interesting about 308 00:16:59,200 --> 00:17:03,080 Speaker 1: Studio seventy one is your ownership structure. A number of 309 00:17:03,120 --> 00:17:06,720 Speaker 1: international companies have stakes, and you talk about how that 310 00:17:06,800 --> 00:17:10,200 Speaker 1: came to be and how that positions you in the market. Right, 311 00:17:10,280 --> 00:17:14,119 Speaker 1: So this business is whether you like it or not, 312 00:17:14,200 --> 00:17:17,000 Speaker 1: or want it to be or not as global. Um. 313 00:17:17,119 --> 00:17:19,120 Speaker 1: When we talk about I think we're now at nine 314 00:17:19,160 --> 00:17:22,679 Speaker 1: and a half billion views, that six of them do 315 00:17:22,760 --> 00:17:27,200 Speaker 1: not happen in the United States, UM and so, and 316 00:17:27,359 --> 00:17:32,239 Speaker 1: when people complain about monetization of digital, one of the 317 00:17:32,359 --> 00:17:35,560 Speaker 1: realities is the US market actually even just Google on 318 00:17:35,600 --> 00:17:40,000 Speaker 1: their own does a decent job doing it. It's when 319 00:17:40,040 --> 00:17:44,960 Speaker 1: you add the UK, Germany, Saudi Arabia, the Philippines, all 320 00:17:45,080 --> 00:17:48,720 Speaker 1: the Brazil, other parts of Latin America where where there's 321 00:17:48,800 --> 00:17:52,320 Speaker 1: where those numbers just are smaller because the economies and 322 00:17:52,640 --> 00:17:55,800 Speaker 1: a number of other factors. And so our thesis was 323 00:17:55,800 --> 00:18:00,280 Speaker 1: if we partnered in local markets with UM law large 324 00:18:00,280 --> 00:18:02,480 Speaker 1: sales houses who also had a lot of content that 325 00:18:02,560 --> 00:18:05,679 Speaker 1: was applicable in short form UM, we could build a 326 00:18:05,720 --> 00:18:09,400 Speaker 1: really interesting global footprint that would lift all boats UM 327 00:18:09,480 --> 00:18:12,280 Speaker 1: and so we partner would proceed in UM. There there 328 00:18:12,280 --> 00:18:15,280 Speaker 1: are the controlling shareholder in the business Germany. In Germany 329 00:18:15,280 --> 00:18:17,760 Speaker 1: they're the leading one of the leading broadcasters of not 330 00:18:17,800 --> 00:18:22,320 Speaker 1: the leading broadcaster in Germany and UM they were going 331 00:18:22,480 --> 00:18:26,040 Speaker 1: along that sort of similar path UM. And I think 332 00:18:26,200 --> 00:18:29,000 Speaker 1: what's interesting about the model is it's in Germany. In 333 00:18:29,040 --> 00:18:33,280 Speaker 1: the US, I'm very I'm very digitally native UM with 334 00:18:33,280 --> 00:18:38,760 Speaker 1: with few exceptions in Germany. Half my content is actually 335 00:18:39,080 --> 00:18:43,240 Speaker 1: mainstream prime time television and and day parts and news 336 00:18:43,320 --> 00:18:45,000 Speaker 1: and a whole bunch of other stuff. But cut down 337 00:18:45,000 --> 00:18:47,160 Speaker 1: to short form, cut cut down to short form, that's 338 00:18:47,200 --> 00:18:50,800 Speaker 1: exactly right. So it's it's the voice in short form, 339 00:18:50,880 --> 00:18:53,680 Speaker 1: the voice of Germany in short form or Germany's next 340 00:18:53,680 --> 00:18:56,520 Speaker 1: top model, or you know shows you haven't heard of 341 00:18:56,520 --> 00:18:59,200 Speaker 1: like Galileo, which is their science show, or their news 342 00:18:59,200 --> 00:19:02,480 Speaker 1: shows and stuff like that, and we bundle that with 343 00:19:02,600 --> 00:19:05,760 Speaker 1: the best of the sort of digital creative community and 344 00:19:05,800 --> 00:19:09,120 Speaker 1: sell that as an ad package. Um and so over 345 00:19:09,280 --> 00:19:11,600 Speaker 1: that that business model we sort of you know, are 346 00:19:12,320 --> 00:19:16,359 Speaker 1: exporting from Germany into France with t F one and 347 00:19:16,560 --> 00:19:21,040 Speaker 1: to Italy with media set And is there further growth 348 00:19:21,080 --> 00:19:24,160 Speaker 1: expected there? Can we see yet more partners that get 349 00:19:24,800 --> 00:19:29,040 Speaker 1: expected in fairness a lot more speed. The turnover in 350 00:19:29,320 --> 00:19:33,800 Speaker 1: broadcasters globally has been pretty pretty astounding, I mean in 351 00:19:33,840 --> 00:19:36,880 Speaker 1: the executives executive turnover at the top where we were 352 00:19:37,320 --> 00:19:40,359 Speaker 1: having our discussions, so I I would expect in the 353 00:19:40,400 --> 00:19:43,520 Speaker 1: next year or so we will have further announcements along 354 00:19:43,560 --> 00:19:45,600 Speaker 1: that way. But what we've done in the interim is, 355 00:19:45,720 --> 00:19:48,560 Speaker 1: I mean in Germany in particular, we've really doubled down 356 00:19:48,600 --> 00:19:52,359 Speaker 1: on that concept. We're we're delivering you know, half the 357 00:19:52,400 --> 00:19:55,080 Speaker 1: reach on most of the shows in terms of monetize 358 00:19:55,080 --> 00:19:58,000 Speaker 1: herble impressions on most of the shows. And I think 359 00:19:58,000 --> 00:20:01,440 Speaker 1: we're really trying to figure out this notion and it's 360 00:20:01,480 --> 00:20:04,560 Speaker 1: not it's not Studio sevenyone, it's it's Studio sevenyone really 361 00:20:04,680 --> 00:20:08,520 Speaker 1: is part of the proceedings sort of entertainment vertical, trying 362 00:20:08,520 --> 00:20:12,240 Speaker 1: to figure out the concept of you know, one reach number, right, 363 00:20:12,280 --> 00:20:16,600 Speaker 1: so a single currency for total reach on a on 364 00:20:16,600 --> 00:20:19,800 Speaker 1: a on a on a program, and and and so 365 00:20:20,200 --> 00:20:23,520 Speaker 1: if if, if we're successful in really achieving that as 366 00:20:23,560 --> 00:20:27,600 Speaker 1: a market standard, we believe a ton of AD dollars 367 00:20:27,640 --> 00:20:30,280 Speaker 1: are going to flow into the to the proceeding ecosystem 368 00:20:30,359 --> 00:20:35,840 Speaker 1: beyond just broadcast and oinos. I thought of your company 369 00:20:35,920 --> 00:20:39,040 Speaker 1: when I saw the news recently on what happened with 370 00:20:39,040 --> 00:20:43,560 Speaker 1: Awesomeness TV, because you guys essentially emerged from that same 371 00:20:43,720 --> 00:20:47,679 Speaker 1: corner of the ecosystem what was known as multi channel networks. 372 00:20:48,359 --> 00:20:50,600 Speaker 1: So many of those companies like your own have certainly 373 00:20:50,960 --> 00:20:55,840 Speaker 1: you know, evolved or pivoted since then. What did you 374 00:20:55,840 --> 00:21:00,000 Speaker 1: guys do right that they apparently, given what you see 375 00:21:00,000 --> 00:21:03,719 Speaker 1: a drop from valuation to sale price, that is not 376 00:21:03,920 --> 00:21:06,720 Speaker 1: a company that I think took a good turn. How 377 00:21:06,760 --> 00:21:11,320 Speaker 1: did what went on here? When you lose Jeffrey Katzenberg 378 00:21:11,359 --> 00:21:15,600 Speaker 1: and Brian Robbins, That would be one big check. It's 379 00:21:15,640 --> 00:21:18,880 Speaker 1: just given how much value those two generated for that business, 380 00:21:19,040 --> 00:21:23,240 Speaker 1: and they were shed when Comcast. I don't know the timing, 381 00:21:23,320 --> 00:21:27,320 Speaker 1: but but but the that departure was clearly not good 382 00:21:27,400 --> 00:21:31,400 Speaker 1: for the business. And you know, I don't know Jordan 383 00:21:31,480 --> 00:21:33,160 Speaker 1: all that well, but I just think he had big 384 00:21:33,200 --> 00:21:35,639 Speaker 1: shoes to fill in that in that role. And I 385 00:21:35,680 --> 00:21:39,040 Speaker 1: think secondarily, they were a little different than us from 386 00:21:39,080 --> 00:21:42,760 Speaker 1: the perspective of that was a digital media brand and 387 00:21:42,840 --> 00:21:46,200 Speaker 1: a production business. So they really sold production as their 388 00:21:46,240 --> 00:21:51,040 Speaker 1: core capability. Um. They didn't have the scale that we 389 00:21:51,040 --> 00:21:53,520 Speaker 1: we have at all um, and so they didn't have 390 00:21:53,760 --> 00:21:58,000 Speaker 1: the diversity so as as go ninety and others leave 391 00:21:58,080 --> 00:22:00,920 Speaker 1: the market, I think it left a big hole in 392 00:22:00,920 --> 00:22:04,000 Speaker 1: in there in their business plan, and I think that 393 00:22:04,119 --> 00:22:07,439 Speaker 1: was that was really I think that was very, very 394 00:22:07,520 --> 00:22:09,840 Speaker 1: challenging for them to navigate out of. But you guys 395 00:22:09,880 --> 00:22:12,880 Speaker 1: have a production arm as well, you do some long forms, 396 00:22:12,880 --> 00:22:16,880 Speaker 1: some scripted, how is that going? We're seeing the same 397 00:22:16,920 --> 00:22:19,440 Speaker 1: trends that that is a tough market for companies like 398 00:22:19,560 --> 00:22:22,480 Speaker 1: ours today. I mean, I thought that for a while, 399 00:22:22,520 --> 00:22:25,640 Speaker 1: the conventional wisdom was, Oh, there's Netflix, there's Amazon, there's 400 00:22:25,640 --> 00:22:30,719 Speaker 1: gonna be Apple. So many buyers wanted his long form scripted, 401 00:22:30,840 --> 00:22:36,560 Speaker 1: maybe not scripted. Is it not that simple? It is, 402 00:22:36,680 --> 00:22:38,960 Speaker 1: but but our cork. So if you think about what 403 00:22:39,040 --> 00:22:42,240 Speaker 1: was the core competency of what we sold and what 404 00:22:42,400 --> 00:22:46,119 Speaker 1: the opportunity was for us on the production side was Look, 405 00:22:46,440 --> 00:22:49,200 Speaker 1: when we did the Fred movies, those were massive hits 406 00:22:49,200 --> 00:22:52,879 Speaker 1: on Nickelodeon. That was a pretty big franchise that was successful. 407 00:22:52,920 --> 00:22:55,840 Speaker 1: That was that was the early days of what became 408 00:22:55,880 --> 00:22:58,600 Speaker 1: Studio seventy one. I think a lot of people thought 409 00:22:58,640 --> 00:23:00,240 Speaker 1: that was gonna there was gonna be a lot more 410 00:23:00,320 --> 00:23:05,240 Speaker 1: of that translation where this creator class adds a lot 411 00:23:05,280 --> 00:23:08,200 Speaker 1: of value for O T T is they can drive 412 00:23:08,400 --> 00:23:13,160 Speaker 1: tons of subscribers and engagement in those ecosystems, and so 413 00:23:14,040 --> 00:23:17,080 Speaker 1: that was that was a core capability of ours. What 414 00:23:17,240 --> 00:23:20,400 Speaker 1: has happened when a lot of the market entrants just 415 00:23:20,560 --> 00:23:24,080 Speaker 1: decided that you know, folded their their tents over the 416 00:23:24,160 --> 00:23:27,800 Speaker 1: last year, the other buyers aren't looking for that in 417 00:23:27,840 --> 00:23:31,920 Speaker 1: the same volumes. So it's just our capability is still there. 418 00:23:32,080 --> 00:23:36,160 Speaker 1: It's very applicable where we've actually transferring into businesses like podcasting, 419 00:23:36,200 --> 00:23:39,560 Speaker 1: where we know we can generate audiences and have people 420 00:23:39,600 --> 00:23:42,800 Speaker 1: engage with our content in a pretty pretty interesting way. 421 00:23:42,840 --> 00:23:46,040 Speaker 1: But I think Netflix isn't dying to do a bunch 422 00:23:46,080 --> 00:23:48,720 Speaker 1: of influencer content would be the answer to that. I 423 00:23:48,760 --> 00:23:51,320 Speaker 1: don't know that Apple is um and so they're gonna 424 00:23:51,359 --> 00:23:54,000 Speaker 1: do it in smaller amounts. So I think it just 425 00:23:54,080 --> 00:23:57,000 Speaker 1: makes it more challenging. So what instead of being a 426 00:23:57,160 --> 00:23:59,560 Speaker 1: unique player or one of a small group of people 427 00:23:59,560 --> 00:24:02,720 Speaker 1: who can execute in this realm, we're now in a 428 00:24:02,880 --> 00:24:06,840 Speaker 1: long list of producers selling projects, which makes I think 429 00:24:06,840 --> 00:24:10,159 Speaker 1: the world infinitely more difficult. So we're talking about giants 430 00:24:10,160 --> 00:24:12,520 Speaker 1: like Netflix and Amazon, but we should really spend more 431 00:24:12,600 --> 00:24:15,120 Speaker 1: time on the giants you deal with on the ad 432 00:24:15,160 --> 00:24:20,040 Speaker 1: support inside. You mentioned you're still very YouTube center centerance company, 433 00:24:20,119 --> 00:24:22,560 Speaker 1: so you know, give us the status check on them. 434 00:24:22,600 --> 00:24:28,040 Speaker 1: But Facebook, Snapchat, how are these partners evolving? So so 435 00:24:28,119 --> 00:24:32,040 Speaker 1: let's let's let's just take YouTube. YouTube is obviously continues 436 00:24:32,119 --> 00:24:34,920 Speaker 1: to grow and user engagement because I think at some point, 437 00:24:35,560 --> 00:24:37,640 Speaker 1: you know, I think it's two billion monthly people. It's 438 00:24:37,720 --> 00:24:39,280 Speaker 1: quite a few people. At some point. I don't know 439 00:24:39,320 --> 00:24:41,480 Speaker 1: if there's gonna be more users on the platform at 440 00:24:41,520 --> 00:24:45,399 Speaker 1: an exponential growth. But the watch time people, the amount 441 00:24:45,440 --> 00:24:48,560 Speaker 1: of time people are spending on that platform continues to 442 00:24:48,600 --> 00:24:51,280 Speaker 1: grow in a very very healthy way. And so if 443 00:24:51,320 --> 00:24:54,399 Speaker 1: you want to reach as an advertiser eighteen to thirty 444 00:24:54,440 --> 00:24:56,800 Speaker 1: four year old demos and below right we'll call it 445 00:24:56,840 --> 00:24:59,720 Speaker 1: twelve to thirty four, I think you're gonna be hard 446 00:24:59,760 --> 00:25:06,479 Speaker 1: pres us finding video inventory of that scale UM on 447 00:25:06,520 --> 00:25:08,520 Speaker 1: other platforms. I think it's just going to be very, 448 00:25:08,640 --> 00:25:12,560 Speaker 1: very very challenging UM. So they're for all for for 449 00:25:12,600 --> 00:25:14,560 Speaker 1: the long term, they're looking great. And for us, there 450 00:25:14,600 --> 00:25:18,160 Speaker 1: are great there are best partners. That relates to that. 451 00:25:18,320 --> 00:25:23,000 Speaker 1: They're ad technology is really good, their content claiming technologies 452 00:25:23,359 --> 00:25:26,679 Speaker 1: incredibly you know solid. So it works for business like 453 00:25:26,840 --> 00:25:28,960 Speaker 1: us to be on a on a platform like that 454 00:25:29,440 --> 00:25:32,080 Speaker 1: where we're seeing other growth in video that we're like 455 00:25:32,160 --> 00:25:36,200 Speaker 1: super excited about, areas like O T t um we are. 456 00:25:36,320 --> 00:25:38,800 Speaker 1: We've been publishing a ton of apps, not not a 457 00:25:38,920 --> 00:25:42,359 Speaker 1: single We're not focused on a single brand because that 458 00:25:42,359 --> 00:25:44,840 Speaker 1: that just wouldn't fit into our business model. But we 459 00:25:44,920 --> 00:25:47,760 Speaker 1: have like sixty or seventy apps, for instance in Roku, 460 00:25:48,000 --> 00:25:52,280 Speaker 1: ranging from family entertainment to gaming entertainment, animation and things 461 00:25:52,320 --> 00:25:56,240 Speaker 1: like that, and we've seen a pretty pretty heavy pickup 462 00:25:56,320 --> 00:25:59,840 Speaker 1: and not only ad revenue but viewership on that platform, 463 00:26:00,280 --> 00:26:03,920 Speaker 1: same with M with Amazon Fire UM and and other 464 00:26:04,080 --> 00:26:07,359 Speaker 1: sort of connected devices UM and, so we expect to 465 00:26:07,400 --> 00:26:11,560 Speaker 1: be selling more media UM through that platform, you know, 466 00:26:11,640 --> 00:26:13,320 Speaker 1: towards the end of this year and next year. So 467 00:26:13,359 --> 00:26:16,520 Speaker 1: we see high growth for us in monetizing O T 468 00:26:16,720 --> 00:26:20,359 Speaker 1: T traffic UM and probably like we did on the 469 00:26:20,400 --> 00:26:22,840 Speaker 1: YouTube side, will be part of it will be our 470 00:26:22,880 --> 00:26:25,240 Speaker 1: own distributed content, and part of it will be third 471 00:26:25,240 --> 00:26:27,840 Speaker 1: parties so long as it sort of hits that youth 472 00:26:28,040 --> 00:26:34,120 Speaker 1: culture topic. UM. Facebook doesn't allow us to monetize advertising 473 00:26:34,160 --> 00:26:37,760 Speaker 1: where we're the seller. We do have brands on the platform. 474 00:26:38,320 --> 00:26:40,600 Speaker 1: I think, you know, some are doing well, some are 475 00:26:40,640 --> 00:26:43,480 Speaker 1: not doing well. I think it's very much hit or miss, 476 00:26:43,600 --> 00:26:46,600 Speaker 1: by the way, not similar to YouTube. I just think 477 00:26:46,640 --> 00:26:49,199 Speaker 1: they're not as advanced as it relates to video and 478 00:26:49,320 --> 00:26:52,800 Speaker 1: video monetization. But we we have high hopes for them 479 00:26:52,840 --> 00:26:55,000 Speaker 1: to sort of really get that right over the next 480 00:26:55,040 --> 00:26:58,200 Speaker 1: year or two, which I would assume they will. UM. 481 00:26:58,400 --> 00:27:01,760 Speaker 1: Instagram TV is super interesting. We're seeing a ton of 482 00:27:01,800 --> 00:27:05,359 Speaker 1: engagement there. Again, not monetized today, but we really like 483 00:27:05,880 --> 00:27:09,920 Speaker 1: the platform. And on Snap you know, Snap is is 484 00:27:10,000 --> 00:27:13,520 Speaker 1: by invitation only, right, so we've been like the guys 485 00:27:13,520 --> 00:27:16,040 Speaker 1: in the and I had to describe us like, you know, 486 00:27:16,080 --> 00:27:19,240 Speaker 1: the guys outside the nightclub, like please get me in, um, 487 00:27:19,240 --> 00:27:22,080 Speaker 1: But we're finally getting it. So we were just you know, 488 00:27:22,680 --> 00:27:25,720 Speaker 1: starting to produce a channel with world Star Hip Hop 489 00:27:26,080 --> 00:27:30,000 Speaker 1: um for for Snap So that'll be our first foray 490 00:27:30,119 --> 00:27:33,359 Speaker 1: um in there. And you know, again another very highly 491 00:27:33,440 --> 00:27:38,439 Speaker 1: engaged environment. Um. Despite all the monthly active user issues 492 00:27:38,480 --> 00:27:40,840 Speaker 1: and all the growth issues that are in the public market, 493 00:27:41,280 --> 00:27:43,879 Speaker 1: when you really get down to it, there's just the 494 00:27:43,960 --> 00:27:46,760 Speaker 1: people that are on that platform are consuming a ton 495 00:27:46,800 --> 00:27:49,160 Speaker 1: of content. So it's a good place for us to be. 496 00:27:49,720 --> 00:27:52,960 Speaker 1: So I mean one last question. These issues that you 497 00:27:53,080 --> 00:27:56,160 Speaker 1: just cited, uh, any that we haven't talked about yet 498 00:27:56,200 --> 00:27:59,119 Speaker 1: that are notable that you're saying anyone who's in the 499 00:27:59,160 --> 00:28:05,640 Speaker 1: digital content game right now is focused on Well, look, Um, 500 00:28:05,680 --> 00:28:08,000 Speaker 1: if you think about what I think is going to happen, 501 00:28:08,040 --> 00:28:10,080 Speaker 1: then the question is who When you're starting to see 502 00:28:10,080 --> 00:28:12,480 Speaker 1: what Viacom is doing, you know they bought who say 503 00:28:12,520 --> 00:28:16,800 Speaker 1: they bought vid Kan They've got awesomeness. Now, Um, I 504 00:28:16,840 --> 00:28:21,399 Speaker 1: think you're gonna see consolidation in this space, um, just 505 00:28:21,880 --> 00:28:25,720 Speaker 1: because of of all the issues and the variable sort 506 00:28:25,760 --> 00:28:29,520 Speaker 1: of we've discussed UM and I think that's you know, 507 00:28:29,640 --> 00:28:34,040 Speaker 1: definitely the drum that is beating the loudest in the 508 00:28:34,080 --> 00:28:37,160 Speaker 1: market is that this business you know, you know, look, 509 00:28:37,440 --> 00:28:40,160 Speaker 1: we talked about nine and a half billion viewers views 510 00:28:40,200 --> 00:28:42,000 Speaker 1: a month and all the stuff. The reality is we're 511 00:28:42,440 --> 00:28:47,040 Speaker 1: we're very small when compared to any media company. Right, 512 00:28:47,120 --> 00:28:50,240 Speaker 1: We're in the hundreds of millions of revenue, not not billions, 513 00:28:50,880 --> 00:28:53,320 Speaker 1: and so you know, in order to have scale in 514 00:28:53,320 --> 00:28:55,920 Speaker 1: the market where you're dealing with giants, we gotta get 515 00:28:55,960 --> 00:28:58,520 Speaker 1: a lot bigger, and still it will be relatively small 516 00:28:58,720 --> 00:29:01,640 Speaker 1: to add the services are brand partners need the services 517 00:29:01,640 --> 00:29:04,600 Speaker 1: our talent, you know, partners need and to to service 518 00:29:04,600 --> 00:29:08,680 Speaker 1: the market. The markets, there's gonna be fewer but larger businesses. 519 00:29:08,760 --> 00:29:12,000 Speaker 1: And they may be inside companies like a Vicom, or 520 00:29:12,040 --> 00:29:15,520 Speaker 1: they may be um, they may be independent that that 521 00:29:15,520 --> 00:29:19,040 Speaker 1: that I don't know. But you're sizeable enough where you 522 00:29:19,040 --> 00:29:22,080 Speaker 1: yourself at Studio seventy one could be an acquisition target 523 00:29:22,120 --> 00:29:24,760 Speaker 1: or do guys, I well, we already have we already 524 00:29:24,760 --> 00:29:27,080 Speaker 1: been acquired, we already have partners. The question is how 525 00:29:27,120 --> 00:29:30,160 Speaker 1: do we get bigger faster? Is really the question I 526 00:29:30,160 --> 00:29:32,680 Speaker 1: think we have as as we get into this space, 527 00:29:33,080 --> 00:29:35,160 Speaker 1: and we'll see how that plays out in the coming year. 528 00:29:35,240 --> 00:29:40,800 Speaker 1: Thanks Reside for coming than for having me again. That's 529 00:29:40,800 --> 00:29:43,600 Speaker 1: been another episode of Correctly Business. Tune in next week 530 00:29:43,600 --> 00:29:46,720 Speaker 1: from more interesting conversations with some of the brightest minds 531 00:29:46,720 --> 00:29:48,960 Speaker 1: and media. Let us know what you think of the podcast. 532 00:29:49,040 --> 00:29:51,560 Speaker 1: Either drop a comment to the iTunes store or send 533 00:29:51,600 --> 00:29:54,640 Speaker 1: us an email at podcasts at variety dot com. There