WEBVTT - Pocket.Watch CEO on the Kids Entertainment Business 0:00:01.680 --> 0:00:04.880 I'm Emily Chang, and this is the circuit. If you've 0:00:04.920 --> 0:00:07.520 ever walked down the toy isle in walmart or caught 0:00:07.520 --> 0:00:10.639 one of his famous video reviews, chances are you know 0:00:10.840 --> 0:00:14.000 Ryan Kaji. He's one of the biggest YouTube kid stars 0:00:14.040 --> 0:00:16.959 on the planet, racking up billions of views on his 0:00:17.079 --> 0:00:20.880 various channels. After almost a decade of content creation, He's 0:00:20.920 --> 0:00:24.440 getting his first major motion picture with his parents and 0:00:24.480 --> 0:00:26.160 his sisters as co stars. 0:00:26.800 --> 0:00:29.200 Like being a guitar, it's very quality. 0:00:30.560 --> 0:00:32.960 Behind the scenes of the Kaji Empire is a former 0:00:33.000 --> 0:00:37.640 Disney executive who saw a tremendous opportunity. Chris Williams, CEO 0:00:37.680 --> 0:00:40.760 of Pocketwatch, built a company that helps YouTube kid stars 0:00:40.800 --> 0:00:44.920 transform into global franchises. He's now got over fifty kids 0:00:45.000 --> 0:00:46.000 on his client roster. 0:00:46.680 --> 0:00:50.120 They've won the Hunger Games of YouTube, and it's not 0:00:50.479 --> 0:00:53.840 because they're lucky. It's not because they gained the algorithm. 0:00:54.080 --> 0:00:56.000 It's because they've worked really hard. 0:00:56.640 --> 0:00:59.959 It's a lucrative but complicated business, sort of like an 0:01:00.080 --> 0:01:03.040 next generation Mickey Mouse Club. I sat down with Williams 0:01:03.040 --> 0:01:05.399 to talk about how Ryan and his family can compete 0:01:05.440 --> 0:01:09.000 with kids entertainment juggernauts like Coco Melon and Pepa Pig 0:01:09.520 --> 0:01:12.880 and how parents including me should think about balancing screen 0:01:12.920 --> 0:01:16.160 time with playtime. Joining me on this edition of the 0:01:16.160 --> 0:01:19.520 Circuit podcast. Pocket Watch CEO Chris Williams. 0:01:21.400 --> 0:01:23.160 Okay, first of all, thank you for doing this. 0:01:23.160 --> 0:01:25.120 This is absolutely my pleasure. Thanks for being here. 0:01:25.200 --> 0:01:26.319 It's so great to be down here. 0:01:26.319 --> 0:01:28.520 And as you know, I'm a mom four kids, so 0:01:29.000 --> 0:01:31.759 very interested in where this whole world is going. Can 0:01:31.800 --> 0:01:33.440 you start by giving us a little bit of history? 0:01:33.760 --> 0:01:35.920 Who are you and why did you start pocket Watch? 0:01:36.120 --> 0:01:36.400 Sure? 0:01:37.080 --> 0:01:40.040 I'm the founder and CEO of pocket Watch, and I 0:01:40.120 --> 0:01:43.800 was really inspired by watching an incredible transition of how 0:01:43.920 --> 0:01:48.840 kids were consuming content. And it really transformed from watching 0:01:48.920 --> 0:01:52.120 a lot of linear television channels like Disney Channel and 0:01:52.200 --> 0:01:55.320 Nickelodeon and Cartoon Network. And I got to see first 0:01:55.400 --> 0:02:00.920 hand this transition from those linear platforms and TV channels 0:02:01.000 --> 0:02:04.880 and into YouTube primarily. And I saw an incredible shift 0:02:05.040 --> 0:02:08.519 also in my house of kids consuming content much different 0:02:08.600 --> 0:02:09.240 than we ever did. 0:02:09.400 --> 0:02:11.200 Right, Because you're a dad too, I'm a dad and. 0:02:11.160 --> 0:02:14.040 My kids were definitely you know, I would come home 0:02:14.080 --> 0:02:16.160 from a hard day's work and sit down on my 0:02:16.240 --> 0:02:18.720 couch and turn on my big screen TV with my 0:02:18.760 --> 0:02:20.840 surrounds and then crash on the floor and fire up 0:02:20.880 --> 0:02:23.480 their iPhones and watch YouTube videos. And then as a 0:02:23.520 --> 0:02:26.280 member of this company Maker Studios, which ultimately was acquired 0:02:26.320 --> 0:02:29.320 by Disney, where I had been before, I really looked 0:02:29.360 --> 0:02:32.200 and I said, there are these stars, characters and ip 0:02:33.040 --> 0:02:37.720 being born through digital creators on YouTube. Why, as Disney, 0:02:38.080 --> 0:02:41.119 are we not thinking of them more like we think 0:02:41.160 --> 0:02:45.480 of traditional franchises and expanding into all sorts of other things. 0:02:45.480 --> 0:02:47.280 So the real mission of the company from the very 0:02:47.320 --> 0:02:50.000 beginning was to bring kids more of what they love 0:02:50.240 --> 0:02:53.160 from these digital creators in a lot of new places, 0:02:53.240 --> 0:02:54.920 just like the way sort of Disney would do it. 0:02:55.400 --> 0:02:58.160 So what is your role with these kids versus their 0:02:58.200 --> 0:02:59.720 parents and agents and managers. 0:03:00.120 --> 0:03:02.560 What I would say is that we really rely on 0:03:02.800 --> 0:03:06.480 the parents to be parents. What we can do is 0:03:06.520 --> 0:03:09.040 we can determine who we partner with, and this is 0:03:09.160 --> 0:03:13.240 very important that we share values. We need to partner 0:03:13.280 --> 0:03:16.520 with parents who prioritize the right things for these kids, 0:03:16.880 --> 0:03:20.840 and that is everything from health and safety to socialization 0:03:21.520 --> 0:03:25.960 to education. And even if they don't necessarily know exactly 0:03:26.280 --> 0:03:29.240 all the right things to do, that's where we can 0:03:29.280 --> 0:03:33.400 be really helpful. We can empower them with information. We 0:03:33.480 --> 0:03:37.240 actually do that with a creator handbook that every single 0:03:37.280 --> 0:03:40.520 one of our forty seven partners gets when we partner 0:03:40.560 --> 0:03:43.160 with them, and in it it's all sorts of best 0:03:43.200 --> 0:03:47.600 practices from really great organizations, from SAG to governmental organizations 0:03:47.640 --> 0:03:50.920 on everything from how to film your child, how long 0:03:50.960 --> 0:03:53.160 is the right appropriate number of hours, how to book 0:03:53.160 --> 0:03:58.160 a studio teacher, how to set aside money for your 0:03:58.240 --> 0:04:03.800 child appropriately through Kogan accounts, how to disclose promotional relationships 0:04:03.800 --> 0:04:07.920 in an effective FTC compliant way. So we really make 0:04:07.920 --> 0:04:10.720 sure we partner with incredible parents who want to do 0:04:10.760 --> 0:04:13.480 the right thing, and then we empower them with all 0:04:13.480 --> 0:04:15.560 the information that they need to be able to do that. 0:04:15.800 --> 0:04:17.560 Aren't you the one who's also coming up with the 0:04:17.600 --> 0:04:20.560 show ideas and the toy ideas and sort of the 0:04:20.600 --> 0:04:22.040 way to expand the brand. 0:04:22.440 --> 0:04:25.160 For the most part, all of our partners have achieved 0:04:25.200 --> 0:04:29.359 a great level of success on their YouTube channels without us, 0:04:29.480 --> 0:04:31.800 and in fact, that is one of the things we 0:04:31.839 --> 0:04:35.480 look for. Sometimes I say that they've won the Hunger 0:04:35.560 --> 0:04:38.040 Games of YouTube, and what I mean by. 0:04:37.839 --> 0:04:41.040 That is it's competitive there. 0:04:41.200 --> 0:04:46.080 It's the most competitive platform for video, and they've won 0:04:46.160 --> 0:04:49.720 this Hunger Games over tens of thousands of other creators 0:04:50.040 --> 0:04:52.440 trying to do what they have done. And it's not 0:04:52.760 --> 0:04:56.160 because they're lucky. It's not because they gained the algorithm. 0:04:56.520 --> 0:04:59.840 It's because they've worked really hard, they found the right 0:05:00.080 --> 0:05:02.919 things to do for their audience, and then millions of 0:05:02.960 --> 0:05:05.440 people now love to watch their content. 0:05:05.640 --> 0:05:08.480 I was wondering, how much is going viral just luck. 0:05:09.040 --> 0:05:13.320 I wouldn't consider these viral stars. I would consider them 0:05:14.080 --> 0:05:20.000 digital content creators who have amassed loyal followings and deep fandoms. 0:05:20.560 --> 0:05:23.960 It's not like one off videos. Sometimes you get someone 0:05:23.960 --> 0:05:26.280 who has one video that goes really successful and then 0:05:26.320 --> 0:05:28.840 that changes the course and then they lean into it 0:05:28.880 --> 0:05:31.440 and they decide to use that as a platform to 0:05:31.839 --> 0:05:35.560 get much bigger and generate a loyal audience. But generally speaking, 0:05:35.640 --> 0:05:40.160 these are not necessarily viral. They are folks who've amassed millions, 0:05:40.400 --> 0:05:45.000 in some cases hundreds of millions of subscribers free subscribers 0:05:45.040 --> 0:05:48.960 to their YouTube channels. They're generating billions of watch time 0:05:49.640 --> 0:05:53.960 in minutes, and they've really achieved that success because the 0:05:54.000 --> 0:05:56.400 content they create is something that lots and lots and 0:05:56.440 --> 0:05:58.159 lots of kids all over the world want to consume. 0:05:58.279 --> 0:06:00.760 Break down the building blocks of a success full YouTube 0:06:00.920 --> 0:06:01.840 kids Star. 0:06:02.400 --> 0:06:05.120 How much is luck, talent, timing. 0:06:05.839 --> 0:06:09.160 I think it is a mix of art and science. 0:06:09.560 --> 0:06:13.680 Like most forms of entertainment, the science part is a 0:06:13.680 --> 0:06:17.120 bit connected to the hard work and the sense of 0:06:17.400 --> 0:06:21.080 competition that I think all successful digital creators have. In 0:06:21.120 --> 0:06:23.680 this environment on YouTube where they're competing against tens of 0:06:23.720 --> 0:06:26.320 thousands of people, it is very important to have a 0:06:26.320 --> 0:06:31.839 competitive feeling and attitude and then talent. I really do, 0:06:32.040 --> 0:06:35.880 truly believe that the partners that we have who have 0:06:36.000 --> 0:06:39.239 achieved this great level of success on YouTube have done 0:06:39.320 --> 0:06:42.919 so because they're talented, just because they've done it on 0:06:43.000 --> 0:06:47.240 a platform that, to a certain extent is frictionless, meaning 0:06:47.240 --> 0:06:51.200 they don't have to audition, they're not going through gatekeepers. 0:06:51.600 --> 0:06:54.560 That doesn't make it any less successful. In fact, I'd 0:06:54.640 --> 0:06:57.640 argue it would make it more successful that they've amassed 0:06:57.640 --> 0:06:58.240 this audience. 0:06:58.720 --> 0:07:02.440 So Ryan broke out twenty fifteen, What was it about him? 0:07:02.720 --> 0:07:06.960 For one, he is incredibly passionate and confident, and he 0:07:07.000 --> 0:07:10.040 has been since he is six years old, So I 0:07:10.200 --> 0:07:13.640 just think he had the right mix. His parents have 0:07:13.880 --> 0:07:18.720 the ability to allow him to pursue this passion of 0:07:18.760 --> 0:07:22.800 his to make video. I think they've now adopted that 0:07:22.920 --> 0:07:28.120 same passion and built around Ryan into animated content and 0:07:28.160 --> 0:07:30.840 all sorts of other things that don't rely on their 0:07:30.960 --> 0:07:34.040 children nearly as much, and that this has all come 0:07:34.080 --> 0:07:37.960 together to forge a chemistry that has taken Ryan to 0:07:38.080 --> 0:07:41.560 new heights. And then I think from there, from YouTube, 0:07:42.040 --> 0:07:45.160 Pocketwatch this is what we do. We come in and 0:07:45.200 --> 0:07:47.480 we say, how can we take what they've already accomplished 0:07:47.520 --> 0:07:51.320 on YouTube and expand that way beyond YouTube? 0:07:51.560 --> 0:07:55.280 When you met Ryan, what did you think? And then 0:07:55.320 --> 0:07:55.920 what did you do? 0:07:56.800 --> 0:08:01.240 Number one? I thought, wherever I put Ryan content and 0:08:01.320 --> 0:08:04.960 the Ryan's World brand, it would succeed because it had 0:08:04.960 --> 0:08:07.840 succeeded so well on YouTube. I knew he had a 0:08:07.960 --> 0:08:11.960 very deep fandom. Kids all over the world love Ryan, 0:08:12.520 --> 0:08:14.720 and I knew that would I had a tremendous amount 0:08:14.720 --> 0:08:17.640 of confidence that would translate into other things. So Pocketwatch 0:08:17.720 --> 0:08:21.640 we come in. We repackaged the content that they're already 0:08:21.640 --> 0:08:23.880 making on YouTube, for an example, and then we put 0:08:23.920 --> 0:08:28.560 that on platforms that are walled gardens that you can't 0:08:28.600 --> 0:08:32.400 just upload to, like a Facebook or a YouTube, so Hulu, 0:08:32.559 --> 0:08:34.480 so you know, taking Ryan's content and putting on a 0:08:34.559 --> 0:08:38.360 Hulu on Peacock, putting it on Sky in the UK, 0:08:39.160 --> 0:08:41.800 taking that content and starting to build audiences there, and 0:08:41.800 --> 0:08:44.520 then taking that a step further by doing even a 0:08:44.559 --> 0:08:49.360 more premium series with Nickelodeon called Ryan's Mystery Playdate, which 0:08:49.720 --> 0:08:54.640 our chief content officer, Albi Hecht created and executive produced, 0:08:54.679 --> 0:08:56.920 and that was our show. And we did that with 0:08:57.080 --> 0:08:59.960 Ryan called Ryan's Mystery play Date, and then distributed that 0:09:00.040 --> 0:09:05.160 through Nickelodeon and all over the world ninety episodes, five seasons, 0:09:05.200 --> 0:09:09.319 Emmy nominated, and Ryan and his family Sean Lean at 0:09:09.320 --> 0:09:14.239 the core of that. And consumer products, we were successful 0:09:14.320 --> 0:09:18.520 in bringing the Ryan's World brand to different types of 0:09:18.520 --> 0:09:23.199 manufacturers for things like toys and toothbrushes and all sorts 0:09:23.240 --> 0:09:25.200 of things to put the Ryan's World brand on, and 0:09:25.200 --> 0:09:28.319 then sold those through Walmart and Target and many other 0:09:28.400 --> 0:09:31.800 retailers all over the world to great success. And frankly, 0:09:31.960 --> 0:09:35.400 I believe this opened the door for not just of 0:09:35.480 --> 0:09:39.400 our other creator partners to walk through, but digital creators 0:09:39.920 --> 0:09:43.680 in different verticals. I think if you asked mister Beast 0:09:43.840 --> 0:09:47.760 why Feastables was available at Walmart, he'd say Ryan's world 0:09:47.800 --> 0:09:49.320 paved the way because he did. 0:09:49.720 --> 0:09:53.160 But can Ryan be the next mister Beast He could? 0:09:54.600 --> 0:09:56.520 I don't know. It really will depend on where his 0:09:56.640 --> 0:10:00.160 interests go. He may be more like a Ron Howard 0:10:00.200 --> 0:10:02.920 who decides to take a more behind the scenes role 0:10:03.200 --> 0:10:05.880 in his career. You know, his current passion is wanting 0:10:05.920 --> 0:10:09.040 to be an animator. You know, the world is his oyster, 0:10:09.280 --> 0:10:12.280 and I think it really says a lot about his 0:10:12.480 --> 0:10:14.920 parents and about us that we are not pushing him 0:10:14.920 --> 0:10:18.080 in any particular direction. He should be free to do 0:10:18.200 --> 0:10:21.120 whatever he wants, even if that's nothing at all. I 0:10:21.120 --> 0:10:22.800 think it's a big part of what we also try 0:10:22.840 --> 0:10:24.200 and establish for his future. 0:10:24.679 --> 0:10:28.760 YouTube Kids can be a super lucrative world. Take us 0:10:28.800 --> 0:10:31.440 inside that world and what the possibilities are. 0:10:32.280 --> 0:10:35.200 Yeah, it can definitely be lucrative. And I think what 0:10:35.280 --> 0:10:38.400 we really try and focus on is working with these 0:10:38.440 --> 0:10:42.840 creators to really expand what they're already doing and generate 0:10:43.080 --> 0:10:47.480 new revenue streams for them on all sorts of different 0:10:47.480 --> 0:10:51.040 platforms that might not be readily available to them as 0:10:51.120 --> 0:10:55.240 just digital creators. Right platforms that are closed, things like 0:10:55.280 --> 0:10:57.520 Hulu and Peacock, and all sorts of platforms like that 0:10:57.960 --> 0:11:01.439 they don't necessarily partner directly with digital creators. They want 0:11:01.480 --> 0:11:05.440 to work with companies who bring them a great supply 0:11:05.679 --> 0:11:10.560 of brand friendly, kid friendly, family friendly content from these 0:11:10.559 --> 0:11:14.480 digital creators in a way that's enriched and packaged so 0:11:14.520 --> 0:11:16.280 that they feel confident that they can put it on 0:11:16.280 --> 0:11:19.600 their platform. So it's really important that that's a new 0:11:19.640 --> 0:11:22.280 revenue stream that we can drive for them. We're even 0:11:22.320 --> 0:11:26.040 doing that now through fast channels, which are free ad 0:11:26.120 --> 0:11:29.160 supported television. So you may have heard of platforms like 0:11:29.240 --> 0:11:32.520 Pluto or the Roku channel or Samsung TV Plus, and 0:11:32.600 --> 0:11:35.840 these are new channels of distribution that we're packaging this 0:11:36.000 --> 0:11:40.199 content into that's ad supported. We even have a new 0:11:40.320 --> 0:11:43.880 service called Ryan and Friends, which both lives as one 0:11:43.880 --> 0:11:47.319 of these fast channels and also as its own subscription 0:11:47.520 --> 0:11:51.719 service for parents to give parents the best of what 0:11:51.760 --> 0:11:55.320 their kids love about YouTube and environment that's completely safe, 0:11:55.559 --> 0:11:57.920 and in exchange for that, they're willing to pay a 0:11:57.960 --> 0:12:00.839 subscription of three ninety nine a month, and in doing so, 0:12:00.880 --> 0:12:05.160 that creates more revenue and more diverse revenue for creators 0:12:05.200 --> 0:12:05.600 as well. 0:12:06.000 --> 0:12:09.360 Has Ryan been as successful on these other platforms On Nickelodeon, 0:12:09.640 --> 0:12:11.560 for example, as he has been on YouTube. 0:12:11.760 --> 0:12:16.960 Yes, Ryan has been successful in many other areas and platforms, 0:12:17.080 --> 0:12:21.880 including Nickelodeon. In fact, Ryan's Mystery Playdate, the series we 0:12:22.000 --> 0:12:26.640 launched on Nickelodeon back in April of twenty nineteen. Forty 0:12:26.679 --> 0:12:30.720 percent of the audience of the premiere episode had never 0:12:30.840 --> 0:12:35.120 watched Nickelodeon before. Wow, So he brought an entirely new 0:12:35.200 --> 0:12:38.200 audience to Nickelodeon. It was the number one show for 0:12:38.280 --> 0:12:41.800 a couple of years. We went five seasons, nominated for 0:12:41.840 --> 0:12:45.720 an Emmy, lost to Sesame Street because everybody does. And 0:12:45.760 --> 0:12:47.600 as soon as you see you're in that category best 0:12:47.600 --> 0:12:52.520 Preschool Series, you're like, Okay, we lose thirty five years 0:12:52.559 --> 0:12:56.120 I think they've won. But yeah, And certainly consumer products, 0:12:56.240 --> 0:13:00.560 toys especially have probably generated over half a billion dollars 0:13:00.559 --> 0:13:05.640 at retail since launching in twenty eighteen. So yes, Ryan 0:13:05.760 --> 0:13:09.839 is very successful. Wherever we put the brand and the content, you. 0:13:09.840 --> 0:13:13.960 Now represent so many kids, and there are so many 0:13:14.000 --> 0:13:16.960 influencers out there, some of them have much bigger followings 0:13:16.960 --> 0:13:19.880 than Ryan. Talk to us about the other people in 0:13:19.920 --> 0:13:20.440 this world. 0:13:20.480 --> 0:13:23.200 Who's the competition in terms of the creator partners that 0:13:23.240 --> 0:13:26.559 we have from YouTube, Not all of them are even kids. 0:13:26.880 --> 0:13:30.280 Could be an animator who's had great success, or it 0:13:30.320 --> 0:13:33.360 could be a nineteen year old magician from the UK 0:13:33.720 --> 0:13:36.800 named Dan Rhodes. He was the seventh largest creator on 0:13:36.840 --> 0:13:40.479 all of YouTube last year. So we really pride ourselves 0:13:40.480 --> 0:13:44.520 on the diversity of the portfolio of creators that we 0:13:44.640 --> 0:13:47.400 partner with. And that's not just traditional diversity, which means 0:13:47.760 --> 0:13:53.319 so much to us, and that traditional diversity obviously nationality, ethnicity, race, 0:13:53.360 --> 0:13:56.440 This is very important. We truly believe kids are better 0:13:56.760 --> 0:13:59.280 off being able to consume content where they can see 0:13:59.280 --> 0:14:02.280 themselves in the content. We think that's truly important to them. 0:14:02.679 --> 0:14:06.920 But we're also diverse in genre type and within the 0:14:07.000 --> 0:14:09.720 kids and family demographic, so we have a lot of 0:14:09.760 --> 0:14:14.040 different creators. I think we tend to look for creators 0:14:14.080 --> 0:14:17.880 that have already succeeded with their own content and then 0:14:17.960 --> 0:14:22.800 who also have an ambition to go even further, which 0:14:22.840 --> 0:14:23.600 is not everybody. 0:14:23.800 --> 0:14:27.440 Diana is now your biggest star, I guess based on 0:14:27.520 --> 0:14:28.960 YouTube views. 0:14:28.520 --> 0:14:33.520 From a pure audience measurement on YouTube, Diana's a pretty 0:14:33.520 --> 0:14:35.040 astounding creator. 0:14:35.280 --> 0:14:36.320 What is it about her? 0:14:36.520 --> 0:14:40.040 Her and her brother Roma have generated an audience that's 0:14:40.080 --> 0:14:43.280 pretty incomprehensible. They're the third largest creator channel on all 0:14:43.280 --> 0:14:47.320 of YouTube, not just kids, just broadly Wow, hundreds of 0:14:47.360 --> 0:14:52.360 millions of subscribers, billions of views every month, and I 0:14:52.400 --> 0:14:57.080 think they've pioneered a new type of format that worked 0:14:57.160 --> 0:15:01.000 really well globally. And I think big part of their 0:15:01.040 --> 0:15:05.200 success besides the passion for what they do that really 0:15:05.440 --> 0:15:10.240 shows and their adorableness amongst each other and how they 0:15:10.520 --> 0:15:14.080 interact with each other, but they've really done this imaginative 0:15:14.280 --> 0:15:18.440 play type of format where they're pretending, and I think 0:15:18.440 --> 0:15:21.640 it mirrors the play patterns of kids all over the world, 0:15:22.200 --> 0:15:25.480 and they do it with very little dialogue. And by 0:15:25.520 --> 0:15:28.960 doing it with very little dialogue, it's really easy for 0:15:29.080 --> 0:15:31.560 kids all over the world who speak all sorts of 0:15:31.560 --> 0:15:34.920 different languages to embrace Diana and Roma and their content, 0:15:35.280 --> 0:15:37.880 and I think that's a big key to their success. 0:15:38.520 --> 0:15:42.160 Diana and Roma, Vlad and Nikki Nastia. Why are we 0:15:42.160 --> 0:15:45.320 seeing so many stars from Ukraine from Russia? 0:15:45.360 --> 0:15:49.240 That's a really good question. There are others besides those three, 0:15:49.360 --> 0:15:53.240 but they are all massive with massive audiences, and it's 0:15:53.320 --> 0:15:57.120 probably something about the culture there. I really couldn't tell you. 0:15:57.160 --> 0:16:01.040 I don't know the answer to why that particular cultural 0:16:01.160 --> 0:16:07.120 upbringing has led to three of the largest kids influencers 0:16:07.120 --> 0:16:07.920 on all of YouTube. 0:16:07.920 --> 0:16:11.920 What about the audience like globally, where are the viewers 0:16:11.960 --> 0:16:12.520 coming from? 0:16:12.840 --> 0:16:14.280 For Ryan? For Diana. 0:16:14.640 --> 0:16:17.880 The good news about operating on a platform like YouTube, 0:16:17.960 --> 0:16:21.080 for these creators and for us and being their big partners, 0:16:21.560 --> 0:16:24.120 is that we can see where the audience is coming 0:16:24.160 --> 0:16:28.000 from with a very high level of accuracy. So it 0:16:28.080 --> 0:16:31.280 really depends on the creator. You know, Ryan has always 0:16:31.320 --> 0:16:36.320 had a very strong English language audience. We've recently started 0:16:36.360 --> 0:16:40.000 moving heavily into Spanish language. There's a Spanish language channel 0:16:40.040 --> 0:16:43.359 on YouTube that's very successful. Now we are now incorporating 0:16:43.360 --> 0:16:46.760 Spanish language into partnerships for Ryan that we have with 0:16:46.920 --> 0:16:51.040 cameo content distribution on platforms like Roku, So we're really 0:16:51.040 --> 0:16:55.400 starting to expand Spanish language there. And you can tell 0:16:55.440 --> 0:16:58.040 where are the audience is coming from, and so when 0:16:58.040 --> 0:17:01.040 you look at someone like Diana, it's true maybe only 0:17:01.080 --> 0:17:04.680 fifteen percent is from the US, where twenty percent might 0:17:04.680 --> 0:17:07.879 be from India or from the Middle East, So you 0:17:07.920 --> 0:17:10.840 see audiences from all over the world. But it really 0:17:10.840 --> 0:17:14.199 helps guide us in terms of the type of global 0:17:14.240 --> 0:17:17.119 markets that we want to focus on as we're expanding 0:17:17.160 --> 0:17:18.399 them onto new platforms. 0:17:18.480 --> 0:17:20.359 I'd love for you to break down the building blocks 0:17:20.400 --> 0:17:22.280 of the business, because I think a lot of people 0:17:22.359 --> 0:17:26.160 don't understand how it works. What's the most lucrative part 0:17:26.320 --> 0:17:28.880 of this business? Is it a lot of us on YouTube? 0:17:28.920 --> 0:17:32.680 Is it getting a show, a movie, brand, deals, merch. 0:17:32.880 --> 0:17:35.520 They're all kind of connected. I wouldn't say there is 0:17:35.640 --> 0:17:39.680 one area that we focus on as the most lucrative. 0:17:39.760 --> 0:17:44.000 They do all play together. So, for example, content distribution 0:17:44.280 --> 0:17:46.840 or content syndication, we give them lots of guidance, but 0:17:46.880 --> 0:17:50.080 then we take that content and we cure it, we 0:17:50.240 --> 0:17:52.520 enrich it, we package it, and we distribute on all 0:17:52.560 --> 0:17:55.640 sorts of other platforms. And what we believe that does 0:17:55.840 --> 0:17:59.440 is also help build the brand in a different context. 0:17:59.760 --> 0:18:02.919 So I can take let's say Diana content, and I 0:18:02.960 --> 0:18:06.240 can put that now on a platform like Hulu. There's 0:18:06.280 --> 0:18:11.040 an adjacency to content that parents have a different perception of. 0:18:11.160 --> 0:18:14.320 Suddenly it's sitting next to paw Patrol, it's sitting next 0:18:14.359 --> 0:18:17.640 to SpongeBob, and parents are going to view that brand 0:18:17.720 --> 0:18:21.959 a little differently than having come exclusively from YouTube, and 0:18:22.080 --> 0:18:26.720 that might open the door for consumer products, or for gaming, 0:18:27.200 --> 0:18:29.359 or for things that we're going to start exploring this 0:18:29.480 --> 0:18:33.520 year like live events, and so it is definitely a 0:18:33.640 --> 0:18:37.720 cumulative effect of being everywhere kids are giving them more 0:18:37.760 --> 0:18:41.320 about these brands that they love, and just continually expanding 0:18:41.359 --> 0:18:45.359 from there. Oftentimes we'll start with content distribution and content 0:18:45.359 --> 0:18:48.240 syndication and it can be very lucrative as the content 0:18:48.560 --> 0:18:51.920 makes its way onto all these other platforms besides just YouTube, 0:18:52.280 --> 0:18:55.719 and it certainly creates a diversity in revenue that is 0:18:56.040 --> 0:18:59.560 very important for these creators, mostly for their peace of 0:18:59.680 --> 0:19:02.760 mind to know that they're not one hundred percent reliant 0:19:03.160 --> 0:19:05.320 on one platform. And we see what that can do 0:19:05.400 --> 0:19:08.120 not only to creators but to businesses. So you want 0:19:08.440 --> 0:19:12.160 to make a real strong effort to diversify your revenue streams, 0:19:12.160 --> 0:19:13.960 and that's the first way we do it is usually 0:19:13.960 --> 0:19:14.760 content distribution. 0:19:15.000 --> 0:19:18.560 In twenty nineteen, the FTC called out Ryan's channel for 0:19:19.000 --> 0:19:22.240 blurring the lines on sponsored content. It's called spond com. 0:19:22.840 --> 0:19:24.600 What did you learn from that or what are the 0:19:24.680 --> 0:19:25.400 lessons there? 0:19:25.880 --> 0:19:28.879 Honestly, we have always been the gold standard in terms 0:19:28.880 --> 0:19:33.760 of compliance. We believe in the regulatory framework that's out 0:19:33.760 --> 0:19:37.600 there to protect children and people, And to be frank, 0:19:37.720 --> 0:19:40.240 I think the people who lodged the complaint didn't fully 0:19:40.320 --> 0:19:44.800 understand the nature of what required disclosure and what didn't. 0:19:45.520 --> 0:19:47.960 And as you can see, that was a while ago. 0:19:48.280 --> 0:19:51.119 No actions were ever taken from the FTC to Ryan 0:19:51.240 --> 0:19:53.879 or to us on that. And we continue to go 0:19:53.960 --> 0:19:57.679 above and beyond what the level of compliance is. That 0:19:57.760 --> 0:20:00.720 we will always go higher and always be the gold 0:20:00.720 --> 0:20:03.040 standard in terms of that type of compliance, and we 0:20:03.040 --> 0:20:06.680 think it's incredibly important. In fact, one of our attorneys 0:20:06.720 --> 0:20:10.800 here who specializes in this came from an organization called Kiru, 0:20:11.119 --> 0:20:14.760 which is the children's advertising unit that's part of the FTC, 0:20:15.200 --> 0:20:17.360 and so it's very very important to us. 0:20:17.720 --> 0:20:20.760 I'm a mom, and Guilty has charged my kids watch 0:20:20.840 --> 0:20:22.800 more YouTube than I would like to admit. 0:20:23.240 --> 0:20:25.119 Is all this stuff good for kids? 0:20:25.280 --> 0:20:28.120 Is this stuff these kids are making on boxing videos, 0:20:28.160 --> 0:20:29.560 for example, is that actually. 0:20:29.359 --> 0:20:30.040 Good for kids? 0:20:30.400 --> 0:20:33.000 I would say, generally speaking, there's a lot of not 0:20:33.200 --> 0:20:36.480 good for kids things on YouTube, one hundred percent. However, 0:20:37.040 --> 0:20:39.479 as a company, what we get to do is really 0:20:39.880 --> 0:20:43.480 carefully select who we partner with, and it is important 0:20:43.520 --> 0:20:45.520 for us not just that the kids who are in 0:20:45.640 --> 0:20:49.560 the content are prioritizing the health and safety and well being, 0:20:49.920 --> 0:20:52.439 but of the audience as well. And I think you 0:20:52.480 --> 0:20:56.639 see genres just not unlike traditional content, it moves in 0:20:56.680 --> 0:21:01.760 and out based on certain popularity. An imaginative toy play 0:21:02.200 --> 0:21:05.560 is actually a really important aspect of how kids grow 0:21:05.640 --> 0:21:08.720 up and socialize and learn things. And so there's nothing 0:21:08.720 --> 0:21:11.280 inherently wrong with imaginative toy play. 0:21:11.080 --> 0:21:13.240 Right, But do I want my kids watching other kids 0:21:13.240 --> 0:21:16.240 playing with toys on a screen versus playing with toys 0:21:16.240 --> 0:21:18.240 themselves and imagining what could be? 0:21:18.400 --> 0:21:20.199 I like to think, and I saw it in my 0:21:20.240 --> 0:21:22.959 own house as a parent. Maybe you see it is 0:21:23.440 --> 0:21:26.679 many times what they're seeing on YouTube inspires them to 0:21:26.800 --> 0:21:29.879 do something that's the best type of content. So you 0:21:29.960 --> 0:21:33.320 might be watching like a kid's channel that has cooking 0:21:33.400 --> 0:21:35.680 going on, and now all of a sudden, your kid 0:21:35.760 --> 0:21:38.760 has a desire to go, hey, let's make this, Let's 0:21:38.840 --> 0:21:41.640 do this, or it could be some sort of outdoor 0:21:41.720 --> 0:21:44.920 play or even playing with the toy that the notion 0:21:45.119 --> 0:21:48.600 that there's someone just like me who I consider in 0:21:48.640 --> 0:21:51.320 many ways a friend. I think that's the relationship between 0:21:51.320 --> 0:21:53.480 the audience and some of the kids on YouTube is 0:21:53.520 --> 0:21:57.160 one that's more friendly, that they perceive them as their friends, 0:21:57.680 --> 0:22:00.959 and then they're often inspired to do those things themselves, 0:22:01.080 --> 0:22:04.360 which I certainly see in my house all the time. Now. 0:22:04.560 --> 0:22:07.080 Historically the goal was to be in the Mickey Mouse 0:22:07.080 --> 0:22:09.440 Club and everything flowed from there. 0:22:09.880 --> 0:22:13.359 Is that ara over, No, I think you still have 0:22:13.960 --> 0:22:21.000 aspirational performers who think of traditional media success as the 0:22:21.160 --> 0:22:23.600 end goal, and it is a different thing. What I 0:22:23.720 --> 0:22:28.159 find certainly is with these creators on YouTube, their experience 0:22:28.280 --> 0:22:30.720 is different. I always say like one of the things 0:22:30.800 --> 0:22:32.480 they never have to do is go to an audition 0:22:32.560 --> 0:22:36.199 and be rejected that in fact, the majority of content 0:22:36.280 --> 0:22:40.080 these kids create are with their parents, who, at least 0:22:40.080 --> 0:22:43.800 the ones we partner with, prioritize their health and safety, 0:22:44.040 --> 0:22:47.679 their well being, their educations, all the things that are 0:22:47.720 --> 0:22:52.840 really important. The familial part of this is really important. 0:22:52.840 --> 0:22:55.880 In fact, I see some of our creators and I 0:22:55.920 --> 0:22:58.480 wish that I had a business with my kids to 0:22:58.560 --> 0:23:02.160 be able to spend as much quality time together as 0:23:02.240 --> 0:23:05.000 they do. It makes me a little jealous. 0:23:04.720 --> 0:23:05.439 To be friends. 0:23:06.440 --> 0:23:09.880 The landscape is changing though, Like my kids, they watch 0:23:09.880 --> 0:23:11.480 a Disney movie once and they don't want to watch 0:23:11.480 --> 0:23:13.919 it again. I would watch The Little Mermaid and the 0:23:13.960 --> 0:23:17.800 Lion King and send her hundreds of times. Right, So 0:23:18.240 --> 0:23:21.960 who should be worried? Should Disney be worried or Nickelodeon? 0:23:22.680 --> 0:23:26.040 Seems like everyone's coming from them. TikTok's even coming for YouTube. 0:23:26.280 --> 0:23:31.399 I think as the space evolves, the traditional media companies 0:23:31.600 --> 0:23:36.680 will embrace this digital content more and more, which will 0:23:36.720 --> 0:23:40.560 give them access to these audiences like your children, who 0:23:40.600 --> 0:23:44.080 are veering away from what they traditionally consumed from them. 0:23:44.280 --> 0:23:46.119 I just think it's inevitable they have to. 0:23:46.359 --> 0:23:48.120 So Disney's going to figure it out. 0:23:48.400 --> 0:23:50.680 They kind of have to. They don't really have a choice. 0:23:50.760 --> 0:23:53.280 If you think about what's happening with YouTube and TikTok 0:23:53.800 --> 0:23:58.480 and what consumers, including kids, are really deriving from these platforms. 0:23:58.920 --> 0:24:01.240 I do think the traditional system is going to start 0:24:01.240 --> 0:24:03.760 incorporating elements, but I don't think they're going to go away. 0:24:04.520 --> 0:24:06.800 I think they're going to continue to make movies and 0:24:06.920 --> 0:24:09.199 make very premium series, and I think those will have 0:24:09.280 --> 0:24:13.920 a strong place in the buffet of choices that we 0:24:14.040 --> 0:24:15.679 all enjoy, including our kids. 0:24:16.160 --> 0:24:19.239 So then there's these other emerging platforms like Twitch and 0:24:19.440 --> 0:24:21.040 Instagram and discord. 0:24:21.080 --> 0:24:22.160 How do you think about those? 0:24:22.840 --> 0:24:25.920 I think about them all differently. I think YouTube, by 0:24:26.080 --> 0:24:29.639 coming to terms with the FTC in twenty nineteen and 0:24:29.760 --> 0:24:35.840 implementing a process by which to distribute kids content safely 0:24:36.440 --> 0:24:39.280 on that platform, is kind of the only one that 0:24:39.440 --> 0:24:43.120 has that clear lane today. I expect others to adopt 0:24:43.400 --> 0:24:49.520 policies to negotiate with regulators on opening themselves up to 0:24:49.640 --> 0:24:53.679 engaging kids. But even TikTok is a thirteen plus platform, 0:24:54.000 --> 0:24:57.520 we all know there's kids under thirteen consuming content there 0:24:57.520 --> 0:24:59.960 and even making content there, but they're not supposed to, 0:25:00.480 --> 0:25:05.080 And so all of these platforms, Twitch included, we will 0:25:05.200 --> 0:25:10.840 likely hold off until they've done what YouTube did, and 0:25:11.119 --> 0:25:14.080 was to acknowledge that there are kids on these platforms 0:25:14.280 --> 0:25:16.960 and to really create a safe environment through policies and 0:25:17.000 --> 0:25:18.760 regulations to engage with them. 0:25:19.440 --> 0:25:23.000 Shows like Paw Patrol and Pepa Pick these are juggernauts, 0:25:23.400 --> 0:25:25.639 but hits like that are hard to come by. 0:25:25.760 --> 0:25:27.840 Aren't they? Like? How many more of those kinds of 0:25:27.920 --> 0:25:29.040 hits what we see? 0:25:29.240 --> 0:25:32.560 It's a great question, Emily. I do think there's only 0:25:32.600 --> 0:25:37.120 a certain amount of massively popular IP that can kind 0:25:37.160 --> 0:25:39.040 of exist at once. I think you're seeing this in 0:25:39.080 --> 0:25:41.479 traditional a lot as well. I think as we go 0:25:41.560 --> 0:25:44.800 through some superhero fatigue and some things like that. I 0:25:44.840 --> 0:25:47.639 think in kids, the beauty of a platform like YouTube 0:25:47.680 --> 0:25:50.640 is that it does give kids a really strong opportunity 0:25:50.680 --> 0:25:55.760 to pursue content that they might not find in other places. 0:25:55.800 --> 0:25:57.280 And that could be as simple as like, I love 0:25:57.320 --> 0:26:00.320 to watch farming videos. Right, we have a partner name 0:26:00.359 --> 0:26:04.720 of Hudson's Playground. All of Hudson's content is through the 0:26:04.800 --> 0:26:07.919 lens of a creator on a farm. Right. This is 0:26:08.080 --> 0:26:11.600 not something you're going to get on traditional television or 0:26:11.600 --> 0:26:14.960 through movies. But I still think you're going to have 0:26:15.240 --> 0:26:18.680 a mix, and the brands will just come from different places. 0:26:19.000 --> 0:26:23.560 We might see a roadblocks game attain intellectual property status 0:26:23.960 --> 0:26:26.840 as a massive franchise. You know, you could see things 0:26:26.880 --> 0:26:30.639 coming from other areas besides just the traditional system, but 0:26:30.680 --> 0:26:33.320 I think they'll still be throwing out some good big ip. 0:26:33.720 --> 0:26:36.919 So compare the top kid entertainment offerings, whether it's Disney 0:26:36.960 --> 0:26:41.320 or Netflix or Coco Melon or Mister Beast Ryan's World 0:26:41.400 --> 0:26:42.280 to vladen Nikki. 0:26:42.440 --> 0:26:43.600 How do they all stack up to you? 0:26:43.960 --> 0:26:48.119 They're mostly different. When you think of platforms, YouTube is 0:26:48.119 --> 0:26:51.159 in fact the largest platform for kids content in the world. 0:26:51.720 --> 0:26:55.000 Netflix up there. I think it's second. Disney's probably third, 0:26:55.560 --> 0:26:57.639 and so I think there are lots of places to 0:26:57.680 --> 0:27:01.479 consume different types of content, but they usually stand for something. 0:27:01.520 --> 0:27:04.560 I think Disney in particular stance a something very specific 0:27:04.640 --> 0:27:07.399 that when you and your children engage with Disney Plus 0:27:07.520 --> 0:27:10.280 or their content, that you have an expectation of certain 0:27:10.280 --> 0:27:11.800 type of content and you're going to be delivered it. 0:27:12.119 --> 0:27:14.960 Netflix even I think, has a little broader mix, but 0:27:15.200 --> 0:27:19.320 there's a certain expectation. And then you know platforms like YouTube, 0:27:19.400 --> 0:27:23.560 it's a much larger variety that opens the door for 0:27:23.840 --> 0:27:26.080 lots of IP and content that can then actually move 0:27:26.119 --> 0:27:29.239 to those Cocoa Melon's a good example. I think that 0:27:29.359 --> 0:27:33.640 was an incredibly powerful animated series on YouTube and attained 0:27:33.680 --> 0:27:37.359 the status of the largest channel in the world on YouTube, 0:27:37.720 --> 0:27:40.960 and it certainly was no surprise to me that it 0:27:41.040 --> 0:27:43.840 found the same type of massive success when you put 0:27:43.880 --> 0:27:45.720 it on Netflix and other platforms. 0:27:45.920 --> 0:27:50.080 So Disney's third, Right, What is it about Disney? Why 0:27:50.080 --> 0:27:52.440 has Disney lost its shine? 0:27:52.640 --> 0:27:55.679 Well, first off, I'll say I lost the magic. It 0:27:55.760 --> 0:27:58.080 is a very important word, the magic at Disney. I 0:27:58.480 --> 0:28:01.280 am a two time Disney veteran, so keep that in mind. 0:28:01.320 --> 0:28:04.920 I have an incredible admiration for Disney, not just as 0:28:04.920 --> 0:28:07.520 a creative engine, but for their ability to bring that 0:28:07.960 --> 0:28:11.879 creativity to people everywhere. I mean, it is incredible in 0:28:11.920 --> 0:28:16.840 the machine they have for bringing content and IP to people. 0:28:17.359 --> 0:28:20.320 I think in the case of Disney Plus as a 0:28:20.359 --> 0:28:24.520 streaming platform, relative to Netflix and YouTube, it's just purely scale. 0:28:25.080 --> 0:28:28.359 I think Disney will continue to gain ground, but at 0:28:28.400 --> 0:28:31.160 the end of the day, Netflix has way more subscribers 0:28:31.200 --> 0:28:33.960 than Disney, and I think it really comes down to that. 0:28:34.560 --> 0:28:37.840 I don't think they've necessarily lost the magic. I think 0:28:37.920 --> 0:28:41.120 they are going through a period that's happened before where 0:28:41.120 --> 0:28:45.200 they need to refocus their energies on producing great creative 0:28:45.320 --> 0:28:46.920 which I think they've lost a little bit in the 0:28:46.960 --> 0:28:50.120 last couple of years. But I think back to the 0:28:50.160 --> 0:28:53.600 post Katzenberg era, where they had gone through this incredible 0:28:53.720 --> 0:28:58.480 run of Lion King and Aladdin and these incredible animated 0:28:58.640 --> 0:29:02.680 IP and they went through a real rut. And what 0:29:02.800 --> 0:29:06.719 happens in that context is something like Disney Channel actually, 0:29:06.800 --> 0:29:11.280 led by a phenomenal executive, Gary Marsh, incredibly creative, became 0:29:11.360 --> 0:29:13.240 the tip of the spear for the Disney brand for 0:29:13.280 --> 0:29:15.680 a while and that was things like High School Musical 0:29:15.960 --> 0:29:18.800 and Wizards of Waverley Place and that kind of thing. 0:29:18.920 --> 0:29:21.520 But now it seems like Disney Channel is not going to. 0:29:21.480 --> 0:29:25.480 Be certainly no. But my point is, I think something 0:29:25.560 --> 0:29:30.160 within the Disney ecosystem will rise and will be the 0:29:30.480 --> 0:29:34.200 creative engine for the next decade. I think, you know, 0:29:34.200 --> 0:29:36.280 it could still be Marvel, it could still be Star Wars, 0:29:36.320 --> 0:29:38.719 it could still be Pixar. I think those things have 0:29:38.840 --> 0:29:42.400 great opportunity to continue and create a lot of success, 0:29:42.800 --> 0:29:44.920 but they're also facing a lot more competition than they've 0:29:44.920 --> 0:29:45.560 ever faced. 0:29:45.680 --> 0:29:46.920 You think Eiger can do it. 0:29:47.520 --> 0:29:50.560 I'm a true believer. Yes, I've always believed in Bob Iger. 0:29:50.640 --> 0:29:53.320 I've always believed in his what I would call left 0:29:53.360 --> 0:29:58.800 brain right brain success, that he is a rare executive 0:29:58.960 --> 0:30:02.880 that has an credible creative gut. So I think when 0:30:03.040 --> 0:30:07.840 Bob Iger sees content or a ride or a game 0:30:08.240 --> 0:30:11.800 or some experience based on the IP, he can tell 0:30:11.800 --> 0:30:14.000 you whether it's good enough that people are going to 0:30:14.080 --> 0:30:17.120 love it and it's commercial and that they should invest 0:30:17.160 --> 0:30:20.480 heavily in it. And I think that commercial gut, accompanied 0:30:20.520 --> 0:30:22.440 with his ability to manage a team of one hundred 0:30:22.440 --> 0:30:25.000 and eighty thousand people or however many people work at 0:30:25.040 --> 0:30:28.040 the Walt Disney Company. Is a very rare combination, and 0:30:28.040 --> 0:30:30.520 it's probably why it's so challenging to find a. 0:30:30.480 --> 0:30:34.120 Successor we've watched a lot of Coco Melon in my house, 0:30:34.680 --> 0:30:36.680 not me personally, thank goodness, But. 0:30:38.120 --> 0:30:40.280 What's your take on Coco Melon? Like, how big a 0:30:40.320 --> 0:30:41.600 threat is Coco Melon? 0:30:41.960 --> 0:30:45.800 I think Coco Melon is a very, very very big brand. 0:30:46.360 --> 0:30:52.360 I think what happens inevitably is brand value for franchises 0:30:52.400 --> 0:30:56.280 like Coco Melon ebbs and flows. I think they'll see 0:30:56.320 --> 0:30:58.880 their fair share of ebbs, and then they'll have to 0:30:58.960 --> 0:31:03.760 do some great work to make it flow again, if 0:31:03.800 --> 0:31:06.440 you will. And that might be a movie, or that 0:31:06.520 --> 0:31:11.000 might be some event that they can rally behind to 0:31:11.800 --> 0:31:14.000 invigorate the franchise. You know, you've seen it with Paw 0:31:14.040 --> 0:31:17.800 Patrol over the last couple of years, where they've done movies, right, 0:31:17.840 --> 0:31:21.400 Those are great ways to aventize. Certainly, we believe in 0:31:21.440 --> 0:31:26.400 that formula of utilizing things like feature films to eventize 0:31:27.240 --> 0:31:30.080 that particular ip or that particular brand. So I think 0:31:30.120 --> 0:31:31.480 you'll continue to see a lot of that. 0:31:31.760 --> 0:31:34.920 Why is it about Coco Melon that's so addicting. 0:31:35.680 --> 0:31:38.520 You know, I don't generally like to judge the audience. 0:31:39.120 --> 0:31:43.120 This is my title at my last role at Maker Studios, 0:31:43.120 --> 0:31:45.760 which was a part of Disney, was Chief Audience Officer, 0:31:45.920 --> 0:31:48.240 and I kind of made it up, but I made 0:31:48.240 --> 0:31:52.160 it up because it was my homage to the power 0:31:52.680 --> 0:31:59.720 of real, organic audiences and fandoms. And so kids love 0:32:00.080 --> 0:32:04.120 Coco Melan and it's not necessarily for me to judge 0:32:04.200 --> 0:32:06.360 so long as it's not terrible for kids. And I 0:32:06.400 --> 0:32:08.360 do not believe Coco Melos but for kids at all. 0:32:08.360 --> 0:32:11.600 In fact, I think it's deeply rooted in educating kids 0:32:11.600 --> 0:32:14.760 on morality lessons and many many things that are important 0:32:14.760 --> 0:32:18.280 that actually we're being a little neglected in traditional entertainment, 0:32:18.720 --> 0:32:21.760 And so it doesn't surprise me. And I think it 0:32:21.920 --> 0:32:26.920 obviously has attributes that kids are passionately in love with. 0:32:27.040 --> 0:32:29.760 And parents don't have to love the content that their 0:32:29.840 --> 0:32:34.840 kids love. That's not a rule. And there's I think 0:32:35.000 --> 0:32:37.080 kid for kid content is really important. 0:32:37.120 --> 0:32:39.560 So let's flip it instead of making it about the audience, 0:32:39.680 --> 0:32:42.240 What about the creators? What did the creators of Coco 0:32:42.320 --> 0:32:48.320 Melan get so right in terms of capturing the audience attention? 0:32:49.120 --> 0:32:52.800 It's hard to say exactly. Jay the creator and founder 0:32:52.840 --> 0:32:56.960 of Coco Melan and his wife certainly were looking for 0:32:57.400 --> 0:33:00.480 content that they weren't finding for their own children and 0:33:00.680 --> 0:33:03.800 created it. A lot of stories start that way. In fact, 0:33:03.840 --> 0:33:07.680 some more current stories like Gracy's Corner, who we love 0:33:07.920 --> 0:33:10.800 very much. They're not a current partner, but never know 0:33:11.400 --> 0:33:14.160 love them very much, but they are a lovely family 0:33:14.240 --> 0:33:17.640 who wasn't seeing enough diversity in the content that they 0:33:17.640 --> 0:33:21.080 were consuming. An animated content Coco Melan is an example, 0:33:21.480 --> 0:33:24.560 wasn't giving them enough diversity for their kids, so they 0:33:24.680 --> 0:33:28.040 went out and created Gracy's Corner. Now it's massively successful 0:33:28.080 --> 0:33:31.520 as an animated series based on their daughter, and a 0:33:31.600 --> 0:33:34.360 whole huge audience of tens of millions of kids has 0:33:34.400 --> 0:33:35.680 also fallen in love. 0:33:35.960 --> 0:33:38.320 The interesting thing about Coco Melan is owning the IP. 0:33:39.120 --> 0:33:41.040 Do you all wish that you took a page out 0:33:41.040 --> 0:33:43.600 of the Coco Melon playbook and owned the IP? 0:33:44.200 --> 0:33:47.480 I would say, personally, I'm an entrepreneur, I'm a builder. 0:33:47.920 --> 0:33:52.160 I admire Moonbug that acquired Coco Melan very much. In fact, 0:33:52.200 --> 0:33:54.880 the founder and I work together and maker studios. But 0:33:54.960 --> 0:33:57.280 it was a completely different thing. It was built to 0:33:57.560 --> 0:34:01.400 acquire channels in IP, and that's not us. We were 0:34:01.400 --> 0:34:05.560 built to partner with incredible digital creators to help build 0:34:05.600 --> 0:34:09.399 businesses around that. And so it's not that we might 0:34:09.640 --> 0:34:13.520 never acquire some IP and we do. In fact, when 0:34:13.560 --> 0:34:17.120 we partner with our creators, we obviously are investing some 0:34:17.239 --> 0:34:21.560 cases millions of dollars into new IP with those creators. 0:34:21.560 --> 0:34:24.720 Certainly we have very large ownership stakes in that as well, 0:34:25.000 --> 0:34:28.520 but it's just different. I would say we're builders, not buyers. 0:34:28.600 --> 0:34:31.920 Yeah, take us inside YouTube's black box. 0:34:32.239 --> 0:34:34.200 How does the algorithm actually work? 0:34:35.560 --> 0:34:39.440 The algorithm changes frequently in the kid space, but not 0:34:39.520 --> 0:34:42.840 just the kid space. In fact, you can see sometimes 0:34:42.880 --> 0:34:46.759 when it's changing through creators that we're not even partnered with. So, 0:34:46.800 --> 0:34:50.520 for example, mister Beast his rise to success, you can 0:34:50.600 --> 0:34:54.960 definitely pinpoint a little bit to a change in the 0:34:55.040 --> 0:34:59.799 algorithm relative to rewarding content that the algorithm believes is 0:34:59.800 --> 0:35:00.680 good for people. 0:35:01.160 --> 0:35:04.040 So the algorithm has given mister Beast a boost. 0:35:04.360 --> 0:35:09.360 I believe that he, like many creators, was trying lots 0:35:09.360 --> 0:35:13.319 of different things, and that altruism became an incredibly important 0:35:13.760 --> 0:35:16.440 part of his content. One because I think he's a 0:35:16.480 --> 0:35:19.799 good person but also because the algorithm was shifting to 0:35:20.480 --> 0:35:23.680 rewarding that at that particular time. So that's where timing 0:35:23.719 --> 0:35:29.719 comes in the chemistry of his charm, his genuine desire 0:35:29.960 --> 0:35:33.759 to do good for people hitting the same timing is 0:35:33.800 --> 0:35:37.600 the algorithm rewarding those things created a alchemy that blew 0:35:37.680 --> 0:35:38.040 him up. 0:35:38.719 --> 0:35:39.239 Interesting. 0:35:39.719 --> 0:35:42.279 I'm wondering if is mister be someone you see that 0:35:42.400 --> 0:35:45.640 will sustain long term fandom. 0:35:46.160 --> 0:35:50.680 Probably, I think he will retain fandom for a long time. 0:35:51.120 --> 0:35:54.120 It's the ups and downs within that context. There might 0:35:54.160 --> 0:35:56.800 be some peaks and valleys, but I think mister Beast 0:35:56.840 --> 0:35:58.640 will continue to do quite well. 0:35:58.719 --> 0:36:01.759 Talk to us about how does it take kids in 0:36:01.800 --> 0:36:04.240 and out of these videos without them even pressing a button? 0:36:04.400 --> 0:36:07.040 And should we be terrified parents? 0:36:07.600 --> 0:36:12.200 I think you can take some confidence in YouTube kids. 0:36:12.680 --> 0:36:16.040 So that's a separate service that's part of YouTube. You 0:36:16.080 --> 0:36:18.080 can download it as a separate app or I believe 0:36:18.080 --> 0:36:21.160 it's also a tab within the app that will create 0:36:21.200 --> 0:36:24.960 a more kids safe experience. That's not safe enough for 0:36:25.080 --> 0:36:28.880 some parents, And I do think most parents' greatest concern 0:36:29.200 --> 0:36:31.200 is not necessarily what their kids are watching, but what 0:36:31.239 --> 0:36:34.279 they're watching next. Because it's been served up to them, 0:36:34.560 --> 0:36:37.680 and there's not a ton of confidence that YouTube is 0:36:37.719 --> 0:36:40.560 going to be serving them something that is parental approved, 0:36:40.640 --> 0:36:41.280 so to speak. 0:36:41.320 --> 0:36:42.840 And what about YouTube in. 0:36:42.719 --> 0:36:45.520 General, Well, YouTube in general, that's the one I'm really 0:36:45.760 --> 0:36:46.320 my kids. 0:36:46.160 --> 0:36:48.360 When they're six, they age out of YouTube kids. 0:36:48.680 --> 0:36:50.880 Yes, I think that is going to continue to happen. 0:36:51.360 --> 0:36:55.160 We're making efforts to build bridges right, and this is 0:36:55.560 --> 0:37:02.040 our investments to enable parents to enjoy the best things 0:37:02.040 --> 0:37:04.919 that their kids love on YouTube, but in environments where 0:37:04.920 --> 0:37:08.600 they don't have to worry. So that's where our services 0:37:08.719 --> 0:37:12.000 like Ryan and Friends and our pocket Watch channel on Pluto, 0:37:12.200 --> 0:37:16.080 and our Ryan and Friant's Plus service on the subscription 0:37:16.200 --> 0:37:19.320 based service that you pay for it really is trying 0:37:19.360 --> 0:37:22.920 to fill that void for parents who really want the 0:37:22.960 --> 0:37:26.880 most safe place for their kids to experience this digital content. 0:37:27.120 --> 0:37:29.480 So getting the best of it. I want my kid 0:37:29.520 --> 0:37:32.520 to be able to enjoy seeing himself and the content 0:37:32.840 --> 0:37:36.120 and seeing content where the kids look like them. But 0:37:36.200 --> 0:37:38.680 at the same time, I don't want them going down 0:37:38.760 --> 0:37:41.440 rabbit holes. I want to know that human beings have 0:37:41.600 --> 0:37:45.920 curated every second of video in this platform. We provide 0:37:46.000 --> 0:37:49.839 that service, so our creator partners, we bring in and 0:37:50.000 --> 0:37:53.320 part of distributing their content is into these safe environments 0:37:53.400 --> 0:37:54.480 that we create. 0:37:54.360 --> 0:37:56.160 And obviously there's only going to be more and more 0:37:56.160 --> 0:38:00.520 of this kind of distributed content. Right Where is this 0:38:00.600 --> 0:38:01.680 all going for kids? 0:38:02.360 --> 0:38:06.319 I think every generation looks at the younger generations with 0:38:06.440 --> 0:38:11.400 a little bit of side eye. You know, it wasn't 0:38:11.440 --> 0:38:14.759 long ago that, you know, we didn't recognize hip hop 0:38:14.800 --> 0:38:17.879 as music because it didn't have a melody, and now 0:38:17.880 --> 0:38:21.840 it's the dominant form of music out there in the world. 0:38:22.200 --> 0:38:25.880 And I think we're going through similar transitions with respect 0:38:25.920 --> 0:38:29.760 to video and how kids consume it, so that people's 0:38:29.800 --> 0:38:32.920 initial reactions are because it's not familiar to what they 0:38:32.920 --> 0:38:35.640 grew up with. They're going to have a certain cynicism 0:38:35.920 --> 0:38:39.440 about whether it's good or bad or what exactly it 0:38:39.560 --> 0:38:43.400 is because it's different. But I do think over time 0:38:43.760 --> 0:38:47.200 those barriers start to fall. We start to embrace the good, 0:38:47.440 --> 0:38:50.680 weed out the bad, and end up in a place 0:38:50.760 --> 0:38:53.400 with kind of a new view on media and content. 0:38:53.640 --> 0:38:56.560 We often say to move at the speed of a 0:38:56.640 --> 0:39:01.080 digital first generation, because they're moving really fast into new 0:39:01.160 --> 0:39:03.840 content types and forms, and we want to be everywhere 0:39:04.000 --> 0:39:04.359 they are. 0:39:04.640 --> 0:39:08.560 We've all seen the horror stories about child kid stars, 0:39:09.280 --> 0:39:13.560 kids being exploited, kids having regrets, kids hating their parents. 0:39:14.239 --> 0:39:16.319 I'm curious what you've seen over the course of your 0:39:16.320 --> 0:39:19.640 career from your time at Disney. What have you seen 0:39:19.680 --> 0:39:21.680 and what did you learn from it? 0:39:22.280 --> 0:39:26.279 Well? Number one is a parent, myself and many of 0:39:26.280 --> 0:39:28.640 the people who work here are parents themselves. Like we 0:39:28.760 --> 0:39:31.520 obviously take the health and safety of the child performer. 0:39:31.600 --> 0:39:34.680 It's the top priority and it's important that we do that. 0:39:35.280 --> 0:39:38.400 But this is a category that's been around a long 0:39:38.520 --> 0:39:43.640 time with a lot of important issues to tackle and face. 0:39:44.360 --> 0:39:48.880 Whether it was from TV shows or from movies or plays, 0:39:49.719 --> 0:39:54.360 children performers has been something that needs thoughtful consideration for 0:39:54.440 --> 0:39:58.279 their health and safety. We are one hundred percent advocates 0:39:58.480 --> 0:40:03.480 of their being regulation government regulation to protect child performers 0:40:03.760 --> 0:40:06.680 in this new category. There are some things happening within 0:40:06.760 --> 0:40:09.040 states that are trying to do that. We are fully 0:40:09.040 --> 0:40:12.600 supportive of those. In the absence of that, all we 0:40:12.640 --> 0:40:14.840 can do is set a gold standard for ourselves and 0:40:14.880 --> 0:40:18.279 our creator partners. We have forty seven of them. We 0:40:18.320 --> 0:40:21.760 can empower them to do the right things by their kids. 0:40:22.000 --> 0:40:25.040 We can just support that effort in any way we 0:40:25.080 --> 0:40:31.520 can with our partners and certainly support broadly policies, regulations, 0:40:32.040 --> 0:40:34.840 and anything that's going to be out there to really 0:40:35.080 --> 0:40:37.040 support the health and safety of these kids. 0:40:37.320 --> 0:40:38.880 I mean a lot of people look at some of 0:40:38.920 --> 0:40:41.840 these parents and think they're exploiting their kids, or at 0:40:41.920 --> 0:40:44.439 least they're pushing their kids too far? 0:40:45.239 --> 0:40:45.640 Are they? 0:40:46.280 --> 0:40:49.520 I'm sure some are one hundred percent. The only thing 0:40:49.560 --> 0:40:52.560 I can say is that the parents that we work 0:40:52.600 --> 0:40:55.520 with are not that kind of parent. It is an 0:40:55.520 --> 0:40:59.640 incredibly important filter for us that we share values with 0:40:59.719 --> 0:41:03.919 these parents, and that means prioritizing the right things. It does. 0:41:04.080 --> 0:41:08.680 It means prioritizing socialization, education, health and safety. These are 0:41:08.719 --> 0:41:13.200 incredibly important values that we have that all the parents 0:41:13.360 --> 0:41:16.239 that we work with, I know they have that We've 0:41:16.320 --> 0:41:18.920 vetted them, we're batting a thousand and we have an 0:41:18.960 --> 0:41:22.279 incredible confidence in their desire to do the right thing. 0:41:22.880 --> 0:41:25.879 And then it's just about making sure that we help 0:41:25.960 --> 0:41:28.440 empower them to do the right thing with information. 0:41:28.719 --> 0:41:30.919 Have you ever had kids say no, like I don't 0:41:30.920 --> 0:41:31.360 want to do that. 0:41:31.920 --> 0:41:34.759 I will say this, I have said no to families 0:41:35.000 --> 0:41:38.440 where I've seen the parents interacting with the kids in 0:41:38.480 --> 0:41:40.440 such a way that made us uncomfortable. 0:41:40.600 --> 0:41:42.960 There is a law now about making sure kids get 0:41:42.960 --> 0:41:45.959 their earnings right. There's a new law about kids having 0:41:46.000 --> 0:41:47.280 access to their earning. 0:41:47.400 --> 0:41:50.319 Well, there's an old law called the Cougan laws and 0:41:50.360 --> 0:41:53.680 the Coogan Laws are very important laws that are designed 0:41:53.920 --> 0:41:58.920 for parents of child performers to set aside money fifteen 0:41:58.960 --> 0:42:02.880 percent of the earnings in a trust account that immediately 0:42:02.880 --> 0:42:06.560 becomes the child's when they turn eighteen. We obviously pay 0:42:06.560 --> 0:42:08.279 into coop and cancel sorts of things like that when 0:42:08.280 --> 0:42:11.680 we're working with kids, and it's part of what we're 0:42:11.680 --> 0:42:15.319 trying to educate these families on is what's appropriate and 0:42:15.320 --> 0:42:18.040 what's not to set aside for their kids. I can 0:42:18.080 --> 0:42:21.440 certainly say that Ryan and his sisters are well taken 0:42:21.480 --> 0:42:23.919 care of for the rest of their lives and likely 0:42:24.160 --> 0:42:27.120 the rest of their kids' lives and their kids' kids' lives, 0:42:27.160 --> 0:42:30.000 and so we don't have any concerns over that. 0:42:30.040 --> 0:42:34.279 One Ryan's getting older, his audience is getting older. What's 0:42:34.320 --> 0:42:37.640 the likelihood he can become a multi generational hit. 0:42:37.880 --> 0:42:42.279 I don't know that Ryan the real kid, as he 0:42:42.360 --> 0:42:46.319 gets older, what first and foremost he'll want to do? 0:42:46.480 --> 0:42:48.760 And we would never want to impose anything on him 0:42:48.840 --> 0:42:51.759 and what the audience will expect or want from him. 0:42:51.840 --> 0:42:55.080 It's hard to say. What I can say is the 0:42:55.080 --> 0:42:58.080 beauty of on demand platforms is that six year old 0:42:58.160 --> 0:43:03.319 Ryan Right is on YouTube forever, attracting a whole new 0:43:03.360 --> 0:43:07.480 audience of young people all the time. And Sean and Lean, 0:43:08.000 --> 0:43:11.239 with our help and support, have expanded that into an 0:43:11.280 --> 0:43:15.439 animated universe that can live forever. And that is something 0:43:15.480 --> 0:43:17.360 we do with a lot of our creator partners. We 0:43:17.400 --> 0:43:21.480 truly believe that if we can establish some new intellectual 0:43:21.520 --> 0:43:26.520 property built around animation based on the kids, that there 0:43:26.560 --> 0:43:30.040 will be an opportunity for annuities to pay them and 0:43:30.080 --> 0:43:32.200 their children and their grandchildren forever. 0:43:32.440 --> 0:43:35.360 So you're putting your bed on the Ryan cartoon to 0:43:35.440 --> 0:43:36.200 keep things going. 0:43:36.520 --> 0:43:41.560 I certainly have contributed an immense amount of resources to 0:43:41.640 --> 0:43:41.960 that end. 0:43:42.120 --> 0:43:44.920 Yes, okay, so we've seen some of these YouTube stars 0:43:44.960 --> 0:43:46.240 try to jump to the big screen. 0:43:46.640 --> 0:43:48.440 It hasn't worked yet. 0:43:49.239 --> 0:43:51.600 This isn't a slam dunk Right Ryan's movie, It's not 0:43:51.640 --> 0:43:52.319 a slam dunk. 0:43:52.920 --> 0:43:55.279 I think it's a slam dunk. Why I think it's 0:43:55.280 --> 0:43:57.400 a slam dunk because he has a deep fandom of 0:43:57.680 --> 0:44:00.840 children that relate to him and love him, and I 0:44:00.840 --> 0:44:02.440 think they're going to want to see him in different 0:44:02.480 --> 0:44:05.160 context and we know that already so by having the 0:44:05.200 --> 0:44:08.880 success for example on Nickelodeon, where we did five seasons 0:44:08.880 --> 0:44:11.759 of Ryan's Mystery played a to extremely high ratings, in 0:44:11.760 --> 0:44:14.960 some cases the best on the network. The context can 0:44:15.040 --> 0:44:17.960 change and we believe that the success will still come. 0:44:18.360 --> 0:44:22.200 We're seeing now what gen Z wants. Jen Alpha is next. 0:44:22.239 --> 0:44:24.120 What does Jen Alpha want? 0:44:24.880 --> 0:44:30.120 Clearly Coco, Melanie, Jen Alpha. Look, they move very quickly 0:44:30.160 --> 0:44:33.799 in terms of what they love, and certainly YouTube still 0:44:33.840 --> 0:44:36.879 holds a very strong place for what they're focused on 0:44:37.120 --> 0:44:39.440 and all the diversity that comes from all the different 0:44:39.480 --> 0:44:43.080 types of content on YouTube before them and then consuming 0:44:43.120 --> 0:44:45.680 that in places that we put that content as well. 0:44:46.280 --> 0:44:48.840 But they move fast. I think gaming will continue to 0:44:48.880 --> 0:44:50.799 be a big part of it. I think they are 0:44:50.840 --> 0:44:54.000 the first to really move into the metaverse, and I 0:44:54.040 --> 0:44:57.520 think you see that on platforms like Roadblocks, Minecraft and 0:44:57.600 --> 0:45:02.319 now coming quickly Fortnite. Creative be behind that, and I think 0:45:02.320 --> 0:45:04.560 that's going to be a big, big, big area of 0:45:04.600 --> 0:45:05.760 where our kids are going. 0:45:06.200 --> 0:45:10.320 Do you see the entertainment hierarchy changing, you know, Disney 0:45:10.320 --> 0:45:13.880 to Netflix, to Nickelodeon, to YouTube, to TikTok, to you know, 0:45:13.920 --> 0:45:16.360 some of these other emerging platforms that we've talked about. 0:45:16.840 --> 0:45:18.759 And I think the ship sailed a little. I think 0:45:18.760 --> 0:45:21.640 a lot of it's happened, and the size of YouTube 0:45:21.640 --> 0:45:24.600 and TikTok, for example, in terms of the video consumption, 0:45:25.280 --> 0:45:29.600 last year, there was a study that reported that less 0:45:29.600 --> 0:45:33.640 than fifty percent of all video consumption was traditional television. 0:45:33.920 --> 0:45:34.960 So the ship has sailed. 0:45:35.360 --> 0:45:38.480 Ship's kind of sailed. I think the value of IP 0:45:39.400 --> 0:45:44.920 remains incredibly important, and so how these big traditional media 0:45:44.960 --> 0:45:49.200 companies look to bring their IP to audiences in these 0:45:49.239 --> 0:45:53.280 new formats like games and metaverse. They'll be there, they'll 0:45:53.320 --> 0:45:55.400 just face new upstart competition. 0:45:55.920 --> 0:45:58.880 You obsess over content and IP, and I'm curious, what 0:45:58.880 --> 0:46:02.080 are the emerging trends in kids entertainment that you're watching? 0:46:02.200 --> 0:46:05.680 Yeah, I do, I certainly. I think what I've always 0:46:05.719 --> 0:46:07.400 tried to do is think a little bit ahead of 0:46:07.400 --> 0:46:10.520 everybody else and where it's going. It's hard to deny 0:46:11.000 --> 0:46:13.760 the power of TikTok right now. And it's not just TikTok, 0:46:13.760 --> 0:46:18.000 it's YouTube shorts as well. So this notion of it's 0:46:18.040 --> 0:46:21.279 almost like channel surfing. Literally, the experience on TikTok to 0:46:21.320 --> 0:46:23.680 me is like what I used to do as a kid, 0:46:23.719 --> 0:46:25.600 where I would just like flip up and down and 0:46:25.600 --> 0:46:27.320 maybe you like watch five minutes of a movie and 0:46:27.400 --> 0:46:30.680 you flip around. TikTok is that, And so I think 0:46:30.680 --> 0:46:35.120 it's fascinating that we go through these periods where you 0:46:35.200 --> 0:46:38.759 get these incredible ip and franchisees and brand that you 0:46:38.800 --> 0:46:41.799 have like a deep affection and fandom for, but that 0:46:41.880 --> 0:46:45.560 we all still in our diets of media consumption want 0:46:45.560 --> 0:46:48.600 this like channel flipping. And I think I don't have 0:46:48.600 --> 0:46:53.520 any huge predictions yet, but I'm watching that very closely, 0:46:53.680 --> 0:46:57.920 like what does that mean for people and young people 0:46:57.960 --> 0:47:02.080 in particular, that type of engagement, that type of interaction 0:47:02.200 --> 0:47:05.400 that's a bit lighter. So I'm watching it really really closely. 0:47:05.520 --> 0:47:07.560 So one of my kids kids going to be watching. 0:47:08.120 --> 0:47:09.080 Let's go further out. 0:47:09.239 --> 0:47:11.600 Oh my god, there'll be in some sort of AI 0:47:11.680 --> 0:47:15.920 driven metaverse. I'm sure you know that that looks like 0:47:15.960 --> 0:47:19.520 the real world and something akin to Ready Player one. 0:47:19.719 --> 0:47:22.640 I imagine these things are coming super fast. I think 0:47:22.760 --> 0:47:25.759 AI is certainly a category that we focus on a 0:47:25.800 --> 0:47:28.520 lot at this point. You know, obviously how we can 0:47:28.560 --> 0:47:32.160 make our business more efficient, but from a creativity perspective too, 0:47:32.239 --> 0:47:35.560 in particular working with young kids. One of the things 0:47:35.560 --> 0:47:37.759 we're always trying to do is make it so they 0:47:37.760 --> 0:47:41.839 have to do less and less to achieve more and more. 0:47:41.880 --> 0:47:43.640 Basically and right. 0:47:43.680 --> 0:47:45.120 So AI is going to play here. 0:47:45.000 --> 0:47:48.160 And I plays a big role here, particularly for kids, 0:47:48.360 --> 0:47:51.040 and in the way it dovetails with animation. So when 0:47:51.080 --> 0:47:55.680 we take someone like Ryan for example, and he's superhero 0:47:55.760 --> 0:47:58.920 animated alter ego Red Titan, who is a very popular 0:47:59.040 --> 0:48:02.400 character and content already, and then we bring that to 0:48:02.440 --> 0:48:06.560 a platform like Cameo where it can be voiced by Ryan, 0:48:07.480 --> 0:48:10.959 but he doesn't have to make a new recording every time, 0:48:11.040 --> 0:48:15.239 which would place certainly much unneeded burden on Ryan. So 0:48:15.880 --> 0:48:20.239 we synthesized his voice utilizing AI, and now he can 0:48:20.239 --> 0:48:24.360 not only do these cameos through his animated character Red Titan, 0:48:24.760 --> 0:48:26.879 but he can do them in foreign languages as well, 0:48:27.160 --> 0:48:31.920 including Spanish, which listening to Red Titan with Ryan's voice 0:48:31.960 --> 0:48:36.279 speak fluent Spanish was remarkable And now you can do 0:48:36.360 --> 0:48:39.239 it at scale on Cameo for kids anytime. One of 0:48:39.239 --> 0:48:40.840 the things we're always trying to do is get on 0:48:40.880 --> 0:48:44.440 platforms early. We think it's really important to bring the 0:48:45.000 --> 0:48:48.040 franchises that we work with onto these platforms early. 0:48:48.200 --> 0:48:50.160 Are you concerned at all about how we'll all be 0:48:50.200 --> 0:48:54.719 compensated with AI doing more and more, how your kids 0:48:54.760 --> 0:48:55.640 will be compensated. 0:48:56.800 --> 0:48:59.680 I think it's really important that they become the masters 0:48:59.719 --> 0:49:02.120 of a You know what I tell my kids and 0:49:02.160 --> 0:49:05.120 I tell all the people of the company is AI 0:49:05.200 --> 0:49:08.480 is not going to replace humans. Humans who use AI 0:49:08.840 --> 0:49:11.640 will replace other humans, and you should be the ones 0:49:11.680 --> 0:49:15.480 who understand how to utilize the tools. And I look 0:49:15.520 --> 0:49:18.440 at it very much as a tool, not as a 0:49:18.880 --> 0:49:23.319 full replacement. And I think, particularly in Hollywood, I think 0:49:23.480 --> 0:49:28.319 there is some genuine concern that needs addressing around AI, 0:49:29.320 --> 0:49:32.840 and it's legit. They should have some level of concern. 0:49:33.320 --> 0:49:36.360 But at the end of the day, not everybody wants 0:49:36.400 --> 0:49:39.839 to be a writer or a creator. You still have 0:49:39.880 --> 0:49:42.279 to really have a passion for it. And so I 0:49:42.360 --> 0:49:45.680 think it's the people with a passion for it utilizing 0:49:45.800 --> 0:49:48.000 these new tools in ways that are going to make 0:49:48.080 --> 0:49:51.160 them better creators is really how it's going to play out. 0:49:51.400 --> 0:49:54.200 So it sounds like you're saying, when AI does all 0:49:54.239 --> 0:49:55.799 the work for us, at least there'll be a lot 0:49:55.800 --> 0:49:56.400 of things. 0:49:56.160 --> 0:50:00.200 To watch, right, I do worry about you know. I 0:50:00.200 --> 0:50:03.400 had a conversation with one of my business partners at YouTube, 0:50:03.520 --> 0:50:06.279 where obviously worked very closely with them, and I just 0:50:06.360 --> 0:50:09.279 kept saying, like, you're already in an arms race with 0:50:09.680 --> 0:50:13.800 Asian content farms that are just pumping content onto your platform. 0:50:13.840 --> 0:50:16.080 But the AI, I mean, there's going to be ten 0:50:16.120 --> 0:50:18.800 thousand times as much content. So what I think becomes 0:50:18.920 --> 0:50:23.200 really important trusted curation. I think it's going to get 0:50:23.280 --> 0:50:27.000 more and more important. So pocket Watch we really strive 0:50:27.480 --> 0:50:30.960 to be that trusted curation for parents in a world 0:50:31.080 --> 0:50:34.640 where content is just growing exponentially and AI is just 0:50:34.680 --> 0:50:37.239 going to be putting gasoline on the fire, and so 0:50:37.320 --> 0:50:40.880 you're going to want trusted brands and platforms that you 0:50:40.960 --> 0:50:43.880 can say, Okay, I know this is all curated by 0:50:43.920 --> 0:50:47.120 human beings. This is safe for my kids. There's no 0:50:47.280 --> 0:50:50.280 rabbit holes to go down. It's being enriched for good 0:50:50.520 --> 0:50:53.680 moral values and educational values. You know, all those things 0:50:53.680 --> 0:50:55.520 are going to become increasingly important. 0:50:55.719 --> 0:50:57.440 My god, So as a parent, it's only going to 0:50:57.480 --> 0:50:58.040 get scarier. 0:50:58.280 --> 0:51:00.640 Yeah, a little bit, but we're here to help. 0:51:03.040 --> 0:51:05.440 Thanks so much for listening. To this episode of the Circuit. 0:51:05.680 --> 0:51:07.879 You can watch my visit to Ryan's movie set where 0:51:07.920 --> 0:51:11.080 I meet Ryan and his parents on Bloomger Originals. It's 0:51:11.120 --> 0:51:14.839 a deep dive on the kids entertainment world. I'm Emily Chang. 0:51:15.080 --> 0:51:17.800 Follow me on Twitter and Instagram at Emily Chang TV. 0:51:18.160 --> 0:51:20.280 You can watch new episodes of the Circuit on Bloomberg 0:51:20.320 --> 0:51:23.200 Television or on demand by downloading the Bloomberg app to 0:51:23.239 --> 0:51:26.279 your Smart tv or on YouTube. And check out other 0:51:26.320 --> 0:51:30.640 Bloomberg podcasts on Apple Podcasts, the iHeartMedia app, Spotify, or 0:51:30.680 --> 0:51:33.239 wherever You listen to your shows and let us know 0:51:33.280 --> 0:51:35.480 what you think by leaving a review. They really make 0:51:35.520 --> 0:51:38.680 a difference. I'm your host and executive producer. Our senior 0:51:38.719 --> 0:51:40.279 producers are Lauren Ellis. 0:51:39.960 --> 0:51:40.880 And Alan Jeffries. 0:51:41.000 --> 0:51:43.879 Our editor is Alison Casey. Catch you next time.