1 00:00:08,119 --> 00:00:12,600 Speaker 1: Welcome to Strictly Business Varieties weekly podcast featuring conversations with 2 00:00:12,680 --> 00:00:16,400 Speaker 1: industry leaders about the business of media and entertainment. I'm 3 00:00:16,440 --> 00:00:20,959 Speaker 1: Cynthia Littleton, co editor in chief of Variety. Small independent 4 00:00:21,000 --> 00:00:24,079 Speaker 1: TV companies are an endangered species at a time when 5 00:00:24,120 --> 00:00:27,040 Speaker 1: media's largest conglomerates are focused on the streaming wars and 6 00:00:27,080 --> 00:00:32,240 Speaker 1: global expansion. Today's episode features separate conversations with two such 7 00:00:32,280 --> 00:00:37,159 Speaker 1: business leaders, Paula Madison, CEO of the Africa Channel and 8 00:00:37,280 --> 00:00:40,519 Speaker 1: Bill Rouhanna, Chairman and CEO of Chicken Soup for the 9 00:00:40,560 --> 00:00:44,440 Speaker 1: Soul Entertainment, which owns Crackle and other A VOD channels. 10 00:00:45,400 --> 00:00:49,120 Speaker 1: Both CEO spoke with such conviction about their businesses, but 11 00:00:49,200 --> 00:00:52,440 Speaker 1: also with no illusions about their limitations in the current climate. 12 00:00:53,400 --> 00:00:56,880 Speaker 1: Madison is a former NBC Universal executive who ran the 13 00:00:56,920 --> 00:00:59,640 Speaker 1: network's Los Angeles O and O and later served as 14 00:00:59,680 --> 00:01:03,200 Speaker 1: the comp and He's Chief Diversity Officer during her tenure 15 00:01:03,200 --> 00:01:06,800 Speaker 1: at NBCU. Madison launched the Africa Channel as a private 16 00:01:06,840 --> 00:01:09,560 Speaker 1: cable venture with her brother and other partners in two 17 00:01:09,600 --> 00:01:12,440 Speaker 1: thousand five. She wanted to show the rest of the 18 00:01:12,480 --> 00:01:16,160 Speaker 1: world that there is more to the continent than war, famine, 19 00:01:16,160 --> 00:01:20,120 Speaker 1: and exotic animals. It's taken a long time, but the 20 00:01:20,160 --> 00:01:23,039 Speaker 1: cultural moment in the US has finally caught up with 21 00:01:23,080 --> 00:01:27,360 Speaker 1: Paula's vision. That's all coming up ahead on Strictly Business 22 00:01:27,440 --> 00:01:39,959 Speaker 1: after this break. Welcome back to Strictly Business, Paula Madison, 23 00:01:40,440 --> 00:01:45,800 Speaker 1: CEO of Madison Media Management and Madison eight Media. Let's 24 00:01:45,840 --> 00:01:49,480 Speaker 1: start with the Africa Channel. UM. You have recently, just 25 00:01:49,560 --> 00:01:52,000 Speaker 1: in the last couple of months, made some big games 26 00:01:52,360 --> 00:01:58,640 Speaker 1: with important distributors Comcast, Charter Communications. As I said, you know, 27 00:01:58,840 --> 00:02:01,720 Speaker 1: Variety has been writing ABO all of the gyrations in 28 00:02:01,800 --> 00:02:05,960 Speaker 1: the pay TV market, and and linear distribution seems about 29 00:02:06,000 --> 00:02:10,600 Speaker 1: the most scarce commodity out there. What has been the 30 00:02:10,720 --> 00:02:13,600 Speaker 1: dynamic that has allowed you to make to make progress 31 00:02:13,600 --> 00:02:16,520 Speaker 1: in this area. Oh that's a great question, Cynthia. I mean, 32 00:02:16,560 --> 00:02:21,280 Speaker 1: in fact, you know you, as you might imagine, being 33 00:02:21,320 --> 00:02:28,800 Speaker 1: an independent cable network has been uh a lonely and 34 00:02:29,360 --> 00:02:33,200 Speaker 1: a lonely and arduous slog, but it's one that our 35 00:02:33,880 --> 00:02:38,440 Speaker 1: family and our investors are committed to and UM. Part 36 00:02:38,440 --> 00:02:40,680 Speaker 1: of what's been going on for us has been that 37 00:02:41,160 --> 00:02:45,560 Speaker 1: we committed early on that we wanted this UM entity 38 00:02:45,600 --> 00:02:47,960 Speaker 1: to survive no matter what, so we've had to be 39 00:02:48,080 --> 00:02:52,000 Speaker 1: very adaptable. We've had to be very nimble and creative. 40 00:02:52,120 --> 00:02:56,200 Speaker 1: And where we found ourselves was when we initially were 41 00:02:56,280 --> 00:03:01,280 Speaker 1: launched in two thousand five, overwhelmingly with a day's comcast 42 00:03:01,840 --> 00:03:05,280 Speaker 1: and today's charter right there used to be the time 43 00:03:05,360 --> 00:03:08,440 Speaker 1: Warners and all the others who were involved, but today 44 00:03:08,880 --> 00:03:12,560 Speaker 1: those are through through acquisitions and mergers. Those are the 45 00:03:12,600 --> 00:03:14,680 Speaker 1: ones that I would say that back from two thousand 46 00:03:14,760 --> 00:03:17,959 Speaker 1: and five, that's what they're called today. What we committed 47 00:03:18,000 --> 00:03:22,960 Speaker 1: to was to have a a a channel on the 48 00:03:23,040 --> 00:03:30,040 Speaker 1: air that presented Africa, Africans and African nous in a 49 00:03:30,080 --> 00:03:33,680 Speaker 1: way that did not suggest just war and poverty. Right. 50 00:03:34,040 --> 00:03:38,120 Speaker 1: So with that as a commitment, we plowed every cent 51 00:03:38,280 --> 00:03:43,320 Speaker 1: we ever made back into the business. UM. That wasn't 52 00:03:43,320 --> 00:03:46,560 Speaker 1: easy to do, but that is what we did, and 53 00:03:46,840 --> 00:03:49,640 Speaker 1: we did it, of course with an anticipation at some 54 00:03:49,800 --> 00:03:52,480 Speaker 1: point that we would grow the Africa Channel to a 55 00:03:52,600 --> 00:03:57,720 Speaker 1: point where it did make sense for us to be acquired, merged, 56 00:03:57,840 --> 00:04:01,520 Speaker 1: blended with another larger entity. There's just a handful of 57 00:04:01,600 --> 00:04:05,960 Speaker 1: us out here today who are unaffiliated with any group 58 00:04:06,360 --> 00:04:10,160 Speaker 1: of UM stations, but we are and so for us 59 00:04:10,560 --> 00:04:16,680 Speaker 1: UM it's been difficult, but it's been fulfilling. We've watched 60 00:04:16,680 --> 00:04:19,240 Speaker 1: it grow, We've held our breaths and today, as you said, 61 00:04:19,720 --> 00:04:24,080 Speaker 1: so now you can see the Africa Channel in Brazil, 62 00:04:24,640 --> 00:04:30,040 Speaker 1: the Caribbean, Canada, United States, UM, a number of places 63 00:04:30,120 --> 00:04:33,600 Speaker 1: and it has everything to do with I think the 64 00:04:33,680 --> 00:04:38,320 Speaker 1: quality of our content and our perseverance. M knowing. You know, 65 00:04:38,400 --> 00:04:43,560 Speaker 1: given your background at very high levels of gigantic media companies, 66 00:04:43,960 --> 00:04:46,479 Speaker 1: do you have a sense when you walk into a 67 00:04:46,640 --> 00:04:50,240 Speaker 1: Comcast or a charter not not you know, specifically is 68 00:04:50,279 --> 00:04:54,000 Speaker 1: it do you have the sense that there is a 69 00:04:54,120 --> 00:04:57,760 Speaker 1: begrudging we have to we have to show the FCC 70 00:04:58,000 --> 00:05:00,840 Speaker 1: and regulators that we are nice to some independence, so 71 00:05:00,880 --> 00:05:02,840 Speaker 1: we'll do well, we're gonna do a deal with this 72 00:05:02,920 --> 00:05:05,599 Speaker 1: channel or do you feel like it's a legitimate like 73 00:05:06,080 --> 00:05:08,440 Speaker 1: you know, people are interested in the content and want 74 00:05:08,480 --> 00:05:11,080 Speaker 1: to work with you too, you know in the in there, 75 00:05:11,160 --> 00:05:14,039 Speaker 1: you know, in the best sense of dealmaking, that's how 76 00:05:14,080 --> 00:05:16,680 Speaker 1: can we both help each other. I've heard from you 77 00:05:16,720 --> 00:05:20,600 Speaker 1: know again, very few people entrepreneurs in your similar situation 78 00:05:20,720 --> 00:05:24,560 Speaker 1: that it's more often the former, which can be very frustrating. Yeah, 79 00:05:24,640 --> 00:05:28,160 Speaker 1: I I will say um without a question. In the 80 00:05:28,160 --> 00:05:34,200 Speaker 1: early days, it was very difficult. UM. We spent years 81 00:05:34,920 --> 00:05:42,840 Speaker 1: UM meeting with talking with the Congressional Black Caucus, UM, 82 00:05:43,000 --> 00:05:47,040 Speaker 1: church and community leaders around the United States, in in 83 00:05:47,040 --> 00:05:49,080 Speaker 1: in markets where there was where it would be a 84 00:05:49,120 --> 00:05:55,320 Speaker 1: reasonably significant UM African American population, and and there was 85 00:05:55,440 --> 00:05:59,960 Speaker 1: a lot of UM attitude that would lead one to think, 86 00:06:00,040 --> 00:06:02,960 Speaker 1: he's like, oh, you know, begrudgingly here we are, and 87 00:06:03,000 --> 00:06:07,080 Speaker 1: we're here because Representatives so and so, a congress Person 88 00:06:07,160 --> 00:06:12,039 Speaker 1: so and so contacted UH US and when would you 89 00:06:12,080 --> 00:06:14,159 Speaker 1: please meet with them? And then one of the things 90 00:06:14,160 --> 00:06:16,760 Speaker 1: that would also happen was even if you even if 91 00:06:16,800 --> 00:06:21,680 Speaker 1: we got an audience with the overall parent company, what 92 00:06:21,720 --> 00:06:23,680 Speaker 1: we would be told as well, you have to go 93 00:06:23,760 --> 00:06:29,960 Speaker 1: to every regional head of that cable company and convinced 94 00:06:30,279 --> 00:06:35,600 Speaker 1: that person, that general manager, that president to carry your content. 95 00:06:36,040 --> 00:06:40,400 Speaker 1: It has become a bit easier today. UM. As recently 96 00:06:40,440 --> 00:06:44,800 Speaker 1: as last week Byron Allen UM UM was was the 97 00:06:44,920 --> 00:06:49,840 Speaker 1: convener of a UM of an upfront and the week 98 00:06:49,880 --> 00:06:52,680 Speaker 1: before he was the convener of an upfront for black 99 00:06:52,839 --> 00:06:55,680 Speaker 1: owned media. There's not there are not many of us 100 00:06:56,400 --> 00:06:59,560 Speaker 1: who who are blacks who owned media, But we are 101 00:07:00,120 --> 00:07:02,920 Speaker 1: mean to get more calls, were seeing me to get 102 00:07:02,920 --> 00:07:08,600 Speaker 1: more inquiries from the point where byron Um decided that 103 00:07:08,640 --> 00:07:14,400 Speaker 1: he was going to start filing significant lawsuits against cable 104 00:07:14,480 --> 00:07:19,400 Speaker 1: companies and against advertisers. So has it become easier? Yes, 105 00:07:20,480 --> 00:07:26,120 Speaker 1: am I detecting an air of begrudged ness. I'm not 106 00:07:26,240 --> 00:07:30,120 Speaker 1: detecting it because it might not be politically a student 107 00:07:30,200 --> 00:07:32,560 Speaker 1: to do that these days. I don't know. I can't 108 00:07:32,560 --> 00:07:36,320 Speaker 1: describe a reasoning. But if you're asking me, well, has 109 00:07:36,400 --> 00:07:40,440 Speaker 1: my business and increased twelvefold, I'll tell you no, it 110 00:07:40,520 --> 00:07:44,240 Speaker 1: hasn't happened yet. But there's at least enough conversation bubbling 111 00:07:44,520 --> 00:07:46,960 Speaker 1: so that I feel pretty confident that we'll see more 112 00:07:47,320 --> 00:07:50,680 Speaker 1: advertising revenue. Can I ask you the you know, the 113 00:07:51,000 --> 00:07:53,400 Speaker 1: tough question for any business owner. Have you hit the 114 00:07:53,960 --> 00:07:58,320 Speaker 1: magical break even or profitability mark? We have, we have hit. 115 00:07:58,440 --> 00:08:00,840 Speaker 1: We had the break even mark sometimes time ago. We 116 00:08:00,880 --> 00:08:04,840 Speaker 1: even hit the profitability mark, but again, as I said, 117 00:08:05,000 --> 00:08:07,640 Speaker 1: we plow it back in. We we haven't hit the 118 00:08:07,680 --> 00:08:14,120 Speaker 1: profitability mark where any of our investors right getting dividends. 119 00:08:14,800 --> 00:08:19,160 Speaker 1: That's not happening. Um at the point where we are 120 00:08:19,200 --> 00:08:23,240 Speaker 1: at this stage, as I said, helped very much by 121 00:08:23,240 --> 00:08:26,200 Speaker 1: the discussions that are now being held with black owned media, 122 00:08:26,520 --> 00:08:29,200 Speaker 1: we might get there in the next twelve months where 123 00:08:29,240 --> 00:08:33,559 Speaker 1: we actually can begin to think about how we're doing 124 00:08:33,600 --> 00:08:37,560 Speaker 1: more than just funneling it back into the business. But UM, yeah, 125 00:08:37,559 --> 00:08:40,840 Speaker 1: I know we hit that magic mark a few years ago, 126 00:08:41,200 --> 00:08:43,160 Speaker 1: but not enough so that I would tell you we 127 00:08:43,200 --> 00:08:48,120 Speaker 1: went tripping happily down the street. No, it wasn't like 128 00:08:48,200 --> 00:08:51,160 Speaker 1: that at all. And do you think, would you say 129 00:08:51,200 --> 00:08:53,520 Speaker 1: the bulk of it is that the bulk of your 130 00:08:53,559 --> 00:08:57,360 Speaker 1: revenue comes from affiliate revenue or is advertising starting to 131 00:08:57,679 --> 00:09:01,280 Speaker 1: starting to grow? So advertising is starting to grow, it's 132 00:09:01,320 --> 00:09:06,560 Speaker 1: mostly through our subscriber fees. Is where this is coming from. UM. 133 00:09:06,600 --> 00:09:10,520 Speaker 1: And of course, as you know in the cable industry 134 00:09:10,800 --> 00:09:14,240 Speaker 1: that if we we have moved beyond the plateau of 135 00:09:14,600 --> 00:09:18,800 Speaker 1: subscribers where we actually are seeing a decline in subscribers. 136 00:09:19,640 --> 00:09:24,079 Speaker 1: As you know, that means that UM UM cable platforms 137 00:09:24,080 --> 00:09:28,160 Speaker 1: are not seeking to add more channels, right, They're not 138 00:09:28,240 --> 00:09:32,600 Speaker 1: seeking to pay out more subscriber fees. UM. So where 139 00:09:32,600 --> 00:09:35,760 Speaker 1: we are, we are most fortunate that we were renewed 140 00:09:35,880 --> 00:09:40,120 Speaker 1: recently with our distributor, with our cable distributors, and and 141 00:09:40,120 --> 00:09:43,960 Speaker 1: and I really do think that um they're beginning to 142 00:09:44,000 --> 00:09:46,839 Speaker 1: see some of the economic benefit from it. There are 143 00:09:46,840 --> 00:09:49,280 Speaker 1: more people who I think are asking for it. But 144 00:09:49,400 --> 00:09:53,599 Speaker 1: also I would be remiss if I didn't mention the 145 00:09:53,600 --> 00:09:56,800 Speaker 1: the impact of hashtag black Lives Matter, because it really 146 00:09:56,880 --> 00:10:02,560 Speaker 1: has had an impact. That's that's significant. Um And And 147 00:10:02,720 --> 00:10:07,520 Speaker 1: these renewals and upgrade and expansions are you know, especially 148 00:10:07,520 --> 00:10:11,880 Speaker 1: for a business, for a standalone independent channel, I gotta believe, 149 00:10:12,520 --> 00:10:15,840 Speaker 1: as you say, it could be potentially transformed. Absolutely, they 150 00:10:16,080 --> 00:10:19,520 Speaker 1: are transformative. It's key if if if we had not 151 00:10:19,679 --> 00:10:23,920 Speaker 1: been renewed, it would have been very difficult for me 152 00:10:24,000 --> 00:10:27,000 Speaker 1: to paint any picture close to what I'm painting for 153 00:10:27,120 --> 00:10:30,840 Speaker 1: you today. UM What I what I will say is 154 00:10:31,480 --> 00:10:36,040 Speaker 1: we had an increase two now we're up to twelve 155 00:10:36,120 --> 00:10:41,840 Speaker 1: million subscribers. Right that for us is the largest we've 156 00:10:41,840 --> 00:10:45,880 Speaker 1: ever had. But when you look across other entities, that's 157 00:10:45,880 --> 00:10:50,000 Speaker 1: a joke. What we are seeing, however, is increasingly when 158 00:10:50,040 --> 00:10:53,839 Speaker 1: we combined the combine that you know with s VOD 159 00:10:54,280 --> 00:11:02,600 Speaker 1: and um um on demand, it means that there's linear, 160 00:11:03,200 --> 00:11:09,240 Speaker 1: there's digital Roku. All these add up to allowing us 161 00:11:09,760 --> 00:11:15,360 Speaker 1: to present to our advertisers a sizeable audience. And that's 162 00:11:15,400 --> 00:11:20,920 Speaker 1: what for us is is particularly important as an independently 163 00:11:21,000 --> 00:11:25,360 Speaker 1: owned we. We can't, for example, take our take our 164 00:11:25,440 --> 00:11:30,840 Speaker 1: promotions and and roll them across you know, twenty other 165 00:11:30,920 --> 00:11:34,200 Speaker 1: channels the way you know, my, my, my former colleague 166 00:11:34,280 --> 00:11:38,720 Speaker 1: David Zaslov can do with the Discovery Networks. Right. I 167 00:11:38,840 --> 00:11:41,800 Speaker 1: think about him now and I just smile. I'm beaming 168 00:11:41,840 --> 00:11:45,280 Speaker 1: from ear to ear because he really is a good guy. 169 00:11:45,800 --> 00:11:48,560 Speaker 1: He's really a good guy, and I'm so happy for 170 00:11:48,760 --> 00:11:54,120 Speaker 1: him that the moves that I've seen David make from 171 00:11:54,120 --> 00:11:57,719 Speaker 1: starting the own network and then all everything else that transpired. 172 00:11:58,440 --> 00:12:00,520 Speaker 1: If I could see him, I would you give him 173 00:12:00,520 --> 00:12:03,040 Speaker 1: a fist bump and a high five and applaud because 174 00:12:03,080 --> 00:12:05,920 Speaker 1: I think it's been masterful and he's done it in 175 00:12:06,080 --> 00:12:09,559 Speaker 1: such a classic and elegant way. Tell me more about 176 00:12:09,600 --> 00:12:11,640 Speaker 1: the content, I plane, because I know one of the 177 00:12:11,800 --> 00:12:16,319 Speaker 1: one of the parts of Africa, the African African economies 178 00:12:16,400 --> 00:12:19,840 Speaker 1: that are blossoming is absolutely in places like Kenyan, Nigeria, 179 00:12:20,520 --> 00:12:25,000 Speaker 1: big big TV operations, tons of production and a wonderful 180 00:12:25,320 --> 00:12:27,240 Speaker 1: we did a story a couple of months ago, just 181 00:12:27,320 --> 00:12:32,439 Speaker 1: a wonderful um source of training and jobs and and infrastructure, 182 00:12:32,559 --> 00:12:36,520 Speaker 1: real production infrastructure, the low line infrastructure is starting to 183 00:12:37,600 --> 00:12:40,880 Speaker 1: starting to really coalesce in some key markets. And you 184 00:12:40,920 --> 00:12:43,480 Speaker 1: know these are as, we know, you know these these 185 00:12:43,520 --> 00:12:46,400 Speaker 1: are these are great gigs and great jobs. And you 186 00:12:46,440 --> 00:12:51,280 Speaker 1: know what's more fun than producing content? Yeah, Well, when 187 00:12:51,320 --> 00:12:56,040 Speaker 1: we started something called tech Studios UH tactric the Africa 188 00:12:56,120 --> 00:13:01,280 Speaker 1: che Africa Channel, right, we went out into UM a 189 00:13:01,400 --> 00:13:06,320 Speaker 1: number of venues where what we were able to do 190 00:13:06,559 --> 00:13:13,080 Speaker 1: was get into production arrangements with UM other entities, some 191 00:13:13,200 --> 00:13:14,840 Speaker 1: of which are right here in the United States, so 192 00:13:15,080 --> 00:13:19,880 Speaker 1: UK US Africa UM. I will tell you Cynthia that 193 00:13:20,679 --> 00:13:25,000 Speaker 1: maybe ten twelve years ago, about eight of the African 194 00:13:25,080 --> 00:13:30,360 Speaker 1: Channel's content we owned. We created quality content was great UM, 195 00:13:30,440 --> 00:13:34,440 Speaker 1: and we were able in some instances to UM syndicate 196 00:13:34,520 --> 00:13:38,880 Speaker 1: our content to other UM distributors who wanted, needed, wanted 197 00:13:38,920 --> 00:13:43,760 Speaker 1: more about African content. Today, we don't own nearly as 198 00:13:43,840 --> 00:13:48,320 Speaker 1: much because there is so much quality content coming out 199 00:13:48,360 --> 00:13:52,199 Speaker 1: of Africa that it makes so much more sense for 200 00:13:52,320 --> 00:13:55,640 Speaker 1: us to license that content. We have on the Africa Channel, 201 00:13:55,679 --> 00:14:00,320 Speaker 1: for example, a daily program called Espresso. It's a three 202 00:14:00,480 --> 00:14:03,880 Speaker 1: hour I'll say it's a g M A. It's like 203 00:14:03,960 --> 00:14:07,960 Speaker 1: Good Morning America and it comes out of Johannesburg and 204 00:14:08,200 --> 00:14:11,800 Speaker 1: it at various times. You'll see they're using three different languages. 205 00:14:12,080 --> 00:14:16,760 Speaker 1: There's English, there's Afrikaans, and there's also right and so 206 00:14:17,360 --> 00:14:20,840 Speaker 1: there are different hosts using different languages. But we carry 207 00:14:20,880 --> 00:14:24,440 Speaker 1: this show on a daily basis on the Africa Channel 208 00:14:24,680 --> 00:14:26,960 Speaker 1: so that people who want to be aware of what's 209 00:14:26,960 --> 00:14:30,520 Speaker 1: going on in Southern Africa can watch what we're doing. 210 00:14:30,680 --> 00:14:36,600 Speaker 1: And it's presented in lifestyle, news, music. It's a rich 211 00:14:37,280 --> 00:14:42,360 Speaker 1: and fun to watch program right. Um we have films 212 00:14:42,440 --> 00:14:48,960 Speaker 1: that are coming out of um not only Wood uh Hillywood, Kenya, 213 00:14:49,440 --> 00:14:53,320 Speaker 1: They're coming from everywhere and Umu We we are in 214 00:14:53,440 --> 00:14:57,800 Speaker 1: production now with some of those production companies. Will have 215 00:14:57,920 --> 00:15:00,120 Speaker 1: more to talk about later in the year, but we 216 00:15:00,160 --> 00:15:03,400 Speaker 1: are co producing with a number of these entities content 217 00:15:04,080 --> 00:15:06,480 Speaker 1: that we will run on the Africa Channel and they'll 218 00:15:06,560 --> 00:15:10,400 Speaker 1: run on there and as I said, we we license 219 00:15:10,560 --> 00:15:14,480 Speaker 1: them to other entities also. So for us, that has 220 00:15:14,560 --> 00:15:20,280 Speaker 1: been a a massive difference in how we operated. When 221 00:15:20,280 --> 00:15:23,119 Speaker 1: I was mentioning earlier that we have to be flexible 222 00:15:23,200 --> 00:15:25,960 Speaker 1: and nimble and pay attention to the market. That's how 223 00:15:26,000 --> 00:15:29,120 Speaker 1: we've managed to stay afloat all these years because what 224 00:15:29,160 --> 00:15:33,600 Speaker 1: we're able to do is stay in touch with what 225 00:15:33,800 --> 00:15:37,280 Speaker 1: not only the advertisers want, but what the consumers are 226 00:15:37,320 --> 00:15:43,040 Speaker 1: looking for. And our flexibility has kept us UM in 227 00:15:43,400 --> 00:15:47,320 Speaker 1: really great instead. Uh, I will say to you that 228 00:15:47,400 --> 00:15:51,360 Speaker 1: I think that we are probably going to see much 229 00:15:51,400 --> 00:15:57,320 Speaker 1: more UM. We have like sort of three different UM 230 00:15:57,720 --> 00:16:00,880 Speaker 1: avenues that we go down. There's the Africa channel, there 231 00:16:00,920 --> 00:16:04,440 Speaker 1: is Demand Africa and the tax studios and tax Studios, 232 00:16:04,480 --> 00:16:07,840 Speaker 1: we think it is probably going to be UM the 233 00:16:08,680 --> 00:16:13,520 Speaker 1: blockbuster for us UM and Demand Africa. As I said, 234 00:16:13,520 --> 00:16:16,520 Speaker 1: I mean, I think that we're seeing that spread all 235 00:16:16,560 --> 00:16:18,720 Speaker 1: over the place because what we're not doing is relying 236 00:16:18,760 --> 00:16:22,480 Speaker 1: on a linear distribution and tax studios, I would imagine 237 00:16:22,480 --> 00:16:25,560 Speaker 1: con could cantroduce content that can be licensed in other 238 00:16:25,640 --> 00:16:28,160 Speaker 1: markets to you know, and that is a that's a 239 00:16:28,240 --> 00:16:32,040 Speaker 1: huge source of absolutely financing, that's right, and we have 240 00:16:32,160 --> 00:16:37,280 Speaker 1: done that and and and again this affords us UM. 241 00:16:37,320 --> 00:16:43,960 Speaker 1: This interest now that's generated through the black media, Black 242 00:16:44,000 --> 00:16:47,560 Speaker 1: owned media up fronts of course puts us in a 243 00:16:47,640 --> 00:16:52,520 Speaker 1: much better position for having the budgets and the staff 244 00:16:53,120 --> 00:16:56,640 Speaker 1: and the ability to create much more content and to 245 00:16:57,000 --> 00:16:59,720 Speaker 1: expand beyond where we are now, so we're this is 246 00:17:00,000 --> 00:17:06,399 Speaker 1: this is an exciting time. Place hold on tight. We'll 247 00:17:06,440 --> 00:17:08,920 Speaker 1: be back with Bill Ruhanna of Chicken Soup for the 248 00:17:08,960 --> 00:17:19,560 Speaker 1: Soul Entertainment. And we're back with Bill Ruhanna, who leads 249 00:17:19,640 --> 00:17:23,200 Speaker 1: Chicken Soup for the Soul Entertainment. Ruhanna was a lawyer 250 00:17:23,280 --> 00:17:26,919 Speaker 1: who specialized in entertainment finance in the nineteen seventies. In 251 00:17:26,960 --> 00:17:32,200 Speaker 1: the nineteen nineties, he ran a pioneering broadband provider, Windstark Communications. 252 00:17:32,960 --> 00:17:35,240 Speaker 1: He took over the Chicken Soup for the Soul Book 253 00:17:35,280 --> 00:17:38,760 Speaker 1: franchise in two thousand and eight and quickly expanded into 254 00:17:38,760 --> 00:17:43,760 Speaker 1: other media. C s SE in two thousand nineteen, acquired 255 00:17:43,800 --> 00:17:47,320 Speaker 1: the streamer Crackle from Sony. It's now one of several 256 00:17:47,359 --> 00:17:52,280 Speaker 1: streaming channels that c s SC operates. Here, Ruhanna explains 257 00:17:52,280 --> 00:17:55,119 Speaker 1: how Crackle turned around from losing tens of millions of 258 00:17:55,160 --> 00:17:58,199 Speaker 1: dollars a year to turning a profit for c s S. 259 00:17:59,320 --> 00:18:03,800 Speaker 1: Bill row Hannah, chairman and CEO of Chicken Soup for 260 00:18:03,840 --> 00:18:07,479 Speaker 1: the Soul Entertainment, Thank you for joining us. I'm pleased 261 00:18:07,520 --> 00:18:10,720 Speaker 1: to be here. Thanks for having me. Bill. Your company 262 00:18:10,760 --> 00:18:13,040 Speaker 1: has been around for a long time, but it has 263 00:18:13,359 --> 00:18:17,679 Speaker 1: relative kept a relatively low profile in the mainstream Hollywood world. 264 00:18:18,119 --> 00:18:20,520 Speaker 1: That that has changed in the last couple of months 265 00:18:20,640 --> 00:18:24,159 Speaker 1: as Chicken Soup for the Soul has quietly bought a 266 00:18:24,160 --> 00:18:27,520 Speaker 1: bought a company called Sonar Entertainment, a production company, and 267 00:18:27,640 --> 00:18:32,440 Speaker 1: also recently bought a streaming platform from Sony Pictures called Crackle, 268 00:18:33,200 --> 00:18:35,720 Speaker 1: And those two things have kind of got my attention, 269 00:18:35,760 --> 00:18:37,840 Speaker 1: and so I'm happy to have the chance to sit 270 00:18:37,960 --> 00:18:40,240 Speaker 1: and talk with you and tell us a little bit 271 00:18:40,280 --> 00:18:44,680 Speaker 1: more about what's the strategy behind those acquisitions and what 272 00:18:44,800 --> 00:18:47,200 Speaker 1: you know, what your long term goals for Chicken Soup 273 00:18:47,240 --> 00:18:52,400 Speaker 1: for the Soul Entertainment are, Well, that's pretty easy, because 274 00:18:52,600 --> 00:18:56,200 Speaker 1: we're out to build an AVOD and hopefully the best 275 00:18:56,640 --> 00:19:00,520 Speaker 1: add supported video on demand business. We set out to 276 00:19:00,520 --> 00:19:04,040 Speaker 1: do that, i would say, in two thousand fifteen, not 277 00:19:04,240 --> 00:19:07,120 Speaker 1: knowing exactly how we were going to accomplish that goal, 278 00:19:07,200 --> 00:19:11,919 Speaker 1: and starting out by making some TV series that we 279 00:19:11,960 --> 00:19:14,800 Speaker 1: did with some sponsors. Given the fact that our brand 280 00:19:14,840 --> 00:19:18,200 Speaker 1: is so sponsored friendly, that was pretty easy to do, uh, 281 00:19:18,280 --> 00:19:20,560 Speaker 1: and ended up, as you say, buying Crackle in two 282 00:19:20,600 --> 00:19:23,960 Speaker 1: thousand nineteen, and now yes, actually this morning, closing on 283 00:19:24,080 --> 00:19:27,200 Speaker 1: the acquisition of the sonar assets. So piece by piece 284 00:19:27,240 --> 00:19:30,240 Speaker 1: we're putting together what I see as a big opportunity. 285 00:19:30,400 --> 00:19:35,960 Speaker 1: So tell us more about how you how you intend 286 00:19:36,000 --> 00:19:38,800 Speaker 1: to build that, Like what would the content what what 287 00:19:38,920 --> 00:19:42,880 Speaker 1: kind of content wouldn't power that that channel. Yeah, So 288 00:19:42,920 --> 00:19:48,760 Speaker 1: we actually will have three main aviod networks in our group. 289 00:19:49,480 --> 00:19:52,240 Speaker 1: One is called Crackle as you know, and that's a 290 00:19:52,320 --> 00:19:57,160 Speaker 1: sort of general content, premium content, uh you know, network 291 00:19:57,280 --> 00:20:01,440 Speaker 1: designed around really for all all that A graphics one 292 00:20:01,560 --> 00:20:04,480 Speaker 1: is going to be is called popcorn Flix. That's pretty 293 00:20:04,480 --> 00:20:08,840 Speaker 1: widely distributed and is being turned into an action adventure 294 00:20:09,880 --> 00:20:13,200 Speaker 1: network of sorts. And the last one will be the 295 00:20:13,280 --> 00:20:15,720 Speaker 1: Chicken Soup for the sole about itself and that's being 296 00:20:15,800 --> 00:20:20,159 Speaker 1: launched um this summer, first as a linear fast channel 297 00:20:20,240 --> 00:20:22,119 Speaker 1: and then as an a Bobe channel towards the end 298 00:20:22,119 --> 00:20:24,320 Speaker 1: of the year. That that you could think of as 299 00:20:24,359 --> 00:20:28,040 Speaker 1: a cross between Lifetime, Hallmark and h G t V. 300 00:20:28,440 --> 00:20:31,320 Speaker 1: It's a designed for an audience that appreciates that kind 301 00:20:31,320 --> 00:20:35,639 Speaker 1: of content. What are you seeing out there about the 302 00:20:35,720 --> 00:20:39,080 Speaker 1: kind of content that you offer that is you know, 303 00:20:39,160 --> 00:20:44,440 Speaker 1: making you want to invest more and grow your overall footprint. Yeah, 304 00:20:44,800 --> 00:20:47,840 Speaker 1: So when we were able to buy Crackle. We we 305 00:20:47,880 --> 00:20:51,800 Speaker 1: had a big advantage bestowed upon us as as Sony 306 00:20:51,920 --> 00:20:54,840 Speaker 1: had spent a fair amount of money in time putting 307 00:20:54,880 --> 00:20:59,320 Speaker 1: together that network and making it well known and widely 308 00:20:59,359 --> 00:21:05,240 Speaker 1: distributed UM and with that base we've been building ever since. 309 00:21:05,400 --> 00:21:08,679 Speaker 1: We've taken that up to about thirty million monthly active 310 00:21:08,760 --> 00:21:13,119 Speaker 1: visitors in our Crackle Plus universe now. And Crackle plus 311 00:21:13,119 --> 00:21:15,080 Speaker 1: is the name of a company. Crackle is the name 312 00:21:15,119 --> 00:21:17,880 Speaker 1: of our one of our networks inside Crackle Plus, So 313 00:21:18,280 --> 00:21:20,840 Speaker 1: there was some confusion about that when we first named 314 00:21:20,840 --> 00:21:25,040 Speaker 1: it UM, but it's I think it's clearer now and 315 00:21:25,359 --> 00:21:28,760 Speaker 1: we've gotten pretty good traction in terms of growing viewership, 316 00:21:28,920 --> 00:21:35,120 Speaker 1: growing um CPM, selling out to advertisers. We we've we've 317 00:21:35,160 --> 00:21:37,320 Speaker 1: been in a great spots to you because there's so 318 00:21:37,400 --> 00:21:41,520 Speaker 1: much movement in our favor, you know, viewers leaving cable 319 00:21:41,600 --> 00:21:44,160 Speaker 1: and broadcast and going over the top. There's just such 320 00:21:44,200 --> 00:21:46,600 Speaker 1: amount of such growth in our part of the business 321 00:21:46,680 --> 00:21:49,399 Speaker 1: that it kind of propels us all. It's like a 322 00:21:49,560 --> 00:21:53,679 Speaker 1: rising tide does lift all boats. And advertisers as well. 323 00:21:54,760 --> 00:21:58,600 Speaker 1: They've just finally realized they have no choice. They have 324 00:21:58,800 --> 00:22:02,640 Speaker 1: to they have to advertise on v O D aviod 325 00:22:02,720 --> 00:22:06,480 Speaker 1: networks as they do on broadcasting cable. They don't really 326 00:22:06,520 --> 00:22:09,840 Speaker 1: have a choice. The demographics are we have thirty three 327 00:22:09,880 --> 00:22:13,480 Speaker 1: year old average viewers broadcast as fifty eight year old 328 00:22:13,480 --> 00:22:15,800 Speaker 1: average viewers. It's if you want to reach a complete 329 00:22:15,800 --> 00:22:18,840 Speaker 1: group of people and you're an advertiser, you've got to 330 00:22:18,880 --> 00:22:21,520 Speaker 1: add a voting out of the mix. And it seems 331 00:22:21,560 --> 00:22:23,560 Speaker 1: like all of a sudden, they just really have gotten 332 00:22:23,560 --> 00:22:26,440 Speaker 1: it because the demand is skyrocketed in the last little 333 00:22:26,440 --> 00:22:29,480 Speaker 1: bit of time and we just haven't been able to 334 00:22:29,680 --> 00:22:33,640 Speaker 1: actually keep up with it. We we sold out nine 335 00:22:34,160 --> 00:22:37,480 Speaker 1: percent of our ad impressions in the first quarter, and 336 00:22:37,560 --> 00:22:40,160 Speaker 1: we really try not to sell above eighty five because 337 00:22:40,200 --> 00:22:44,280 Speaker 1: we try to keep pent for the house. So we 338 00:22:44,440 --> 00:22:49,600 Speaker 1: just we just too much demand. Um, do you have 339 00:22:49,760 --> 00:22:53,520 Speaker 1: your own infrastructure, you have your own sales team? Are 340 00:22:53,560 --> 00:22:55,480 Speaker 1: you kind of a soup to nuts operation or do 341 00:22:55,520 --> 00:22:58,920 Speaker 1: you partner with anybody to handle your ad sales? No, 342 00:22:59,119 --> 00:23:02,280 Speaker 1: we are. We have our own ad sales team. That's 343 00:23:02,280 --> 00:23:05,720 Speaker 1: another great thing we got from our our Sony partners. 344 00:23:05,720 --> 00:23:08,960 Speaker 1: You know, Sony owns functionally tent of our company. Now 345 00:23:09,000 --> 00:23:12,000 Speaker 1: because of that sale of Crackle to us, they have 346 00:23:12,080 --> 00:23:17,919 Speaker 1: preferred stock and warrants which get them percent ownership interest. Um. 347 00:23:17,960 --> 00:23:21,000 Speaker 1: But but they built a great sales team. They built 348 00:23:22,119 --> 00:23:29,640 Speaker 1: relationships with local broadcasters that had have local broadcast ad 349 00:23:29,720 --> 00:23:33,040 Speaker 1: sales teams actually selling ads for us, which we then 350 00:23:33,119 --> 00:23:39,200 Speaker 1: geo target into those territories. So our ads are direct soul, 351 00:23:39,400 --> 00:23:45,960 Speaker 1: national ads, local ads at eleven percent programmatic ads. It's 352 00:23:46,040 --> 00:23:49,000 Speaker 1: a it's a great mix. I guess The question that 353 00:23:49,040 --> 00:23:52,880 Speaker 1: also comes to mind, is it Crackle was, at least 354 00:23:53,000 --> 00:23:55,480 Speaker 1: for a time, was it was a priority of Sony 355 00:23:55,520 --> 00:23:58,639 Speaker 1: with all that they had at their disposal to program 356 00:23:59,160 --> 00:24:02,639 Speaker 1: and the content if they could get How can Chicken 357 00:24:02,680 --> 00:24:07,320 Speaker 1: suit for the soul? How can Crackle be worth your 358 00:24:07,400 --> 00:24:09,960 Speaker 1: time and energy when it wasn't you know when it 359 00:24:10,040 --> 00:24:12,800 Speaker 1: when Sony made the decision to sell it, that this platform, 360 00:24:12,920 --> 00:24:15,600 Speaker 1: that they made the decision that this platform wasn't going 361 00:24:15,640 --> 00:24:17,800 Speaker 1: to be a meaningful enough piece of business for you. 362 00:24:18,760 --> 00:24:22,800 Speaker 1: That's a very fair question, and I would say, um, 363 00:24:22,840 --> 00:24:24,760 Speaker 1: there's a few answers to it. But let me start 364 00:24:24,760 --> 00:24:26,840 Speaker 1: with what we actually have in the way of content today, 365 00:24:26,880 --> 00:24:30,119 Speaker 1: because it's kind of relevant. We have a hundred and 366 00:24:30,160 --> 00:24:34,000 Speaker 1: ten agreements with producers, including Sony, to give us access 367 00:24:34,040 --> 00:24:38,640 Speaker 1: to eleven thousand hours and eleven thousand movies and twenty 368 00:24:38,680 --> 00:24:42,800 Speaker 1: two thousand episodes of television for a BOD in North America. 369 00:24:44,400 --> 00:24:47,120 Speaker 1: That's a vast amount of a BODE rights. Now, most 370 00:24:47,160 --> 00:24:49,600 Speaker 1: of them are non exclusive because that's the way about 371 00:24:49,600 --> 00:24:52,360 Speaker 1: has been to dat a non exclusive business. But it's 372 00:24:52,480 --> 00:24:54,920 Speaker 1: a lot of work to put that together. Sony had 373 00:24:54,920 --> 00:24:57,520 Speaker 1: never done that. They just had the Sony content, Which 374 00:24:57,560 --> 00:24:59,440 Speaker 1: is not to say it isn't great, but it was 375 00:24:59,480 --> 00:25:02,879 Speaker 1: a different way of thinking about the business. We thought 376 00:25:02,880 --> 00:25:05,320 Speaker 1: about the business as a business that you could scale 377 00:25:05,400 --> 00:25:08,400 Speaker 1: with other producers as well, and that you and that 378 00:25:08,440 --> 00:25:11,280 Speaker 1: you could make. You could give access to a marketplace 379 00:25:11,280 --> 00:25:14,160 Speaker 1: to other producers, share revenue with them, and grow your 380 00:25:14,160 --> 00:25:18,000 Speaker 1: business with this diversity of content. You know, we took 381 00:25:18,000 --> 00:25:20,840 Speaker 1: a business that was losing tens of millions of dollars. 382 00:25:20,840 --> 00:25:23,119 Speaker 1: I won't tell the exact number, but it was significant 383 00:25:23,640 --> 00:25:25,960 Speaker 1: and it's been it's made money every year we've got it. 384 00:25:27,240 --> 00:25:30,600 Speaker 1: We thought about it differently, Cynthia. We we sized it 385 00:25:30,720 --> 00:25:33,560 Speaker 1: right in terms of overhead. We thought about the way 386 00:25:33,600 --> 00:25:38,840 Speaker 1: you should look at content acquisition differently. We spent marketing 387 00:25:38,880 --> 00:25:42,200 Speaker 1: money differently than they did, and I'm not faulting them 388 00:25:42,240 --> 00:25:44,400 Speaker 1: because they're a big company and they have a way 389 00:25:44,440 --> 00:25:47,200 Speaker 1: of doing things, but it didn't fit the A Bode 390 00:25:47,280 --> 00:25:50,200 Speaker 1: model at its stage of development. It was too much 391 00:25:50,960 --> 00:25:54,840 Speaker 1: for the model at this size. As a BOD grows, 392 00:25:55,680 --> 00:25:57,960 Speaker 1: you know, it'll end up being like almost anything else, 393 00:25:58,000 --> 00:26:00,560 Speaker 1: it will have higher marketing costs, there'll be more content 394 00:26:00,640 --> 00:26:03,000 Speaker 1: that you can you can pay for more content, but 395 00:26:03,119 --> 00:26:06,080 Speaker 1: you had to run it differently in order to make 396 00:26:06,119 --> 00:26:10,479 Speaker 1: it grow in parallel with growing earnings. That's what we 397 00:26:10,480 --> 00:26:12,520 Speaker 1: were able to do successfully. But that's because we're a 398 00:26:12,520 --> 00:26:15,800 Speaker 1: little company, you know, We're not a big studio who, 399 00:26:16,440 --> 00:26:18,520 Speaker 1: by their very nature have to spend more than we 400 00:26:18,560 --> 00:26:21,200 Speaker 1: do on everything. It's it's just it's just the nature 401 00:26:21,320 --> 00:26:25,639 Speaker 1: the beast. So it's it's a different way of operating 402 00:26:25,640 --> 00:26:28,280 Speaker 1: it that I give them a lot of credit because 403 00:26:29,240 --> 00:26:34,360 Speaker 1: they bought into our business plan and thought about we're 404 00:26:34,400 --> 00:26:37,439 Speaker 1: willing to think about the fact that there was a 405 00:26:37,480 --> 00:26:39,600 Speaker 1: better way to run it than the way they had 406 00:26:39,600 --> 00:26:43,600 Speaker 1: been running it before. And they became to us like 407 00:26:43,720 --> 00:26:45,840 Speaker 1: Google is too many of its venture you know, it's 408 00:26:45,920 --> 00:26:49,159 Speaker 1: venture investments. They invested in us by handing over the 409 00:26:49,200 --> 00:26:52,440 Speaker 1: network to us and letting us build it and retaining 410 00:26:52,440 --> 00:26:55,000 Speaker 1: a stake in it. I think they're very happy now 411 00:26:55,080 --> 00:26:57,720 Speaker 1: because we've had a great success with it. But if 412 00:26:57,720 --> 00:27:00,520 Speaker 1: they were losing money and now that's the opposite, I 413 00:27:00,600 --> 00:27:04,119 Speaker 1: would imagine that they're very happy. You're programming partnerships with 414 00:27:04,200 --> 00:27:07,200 Speaker 1: other producers, are those on a revenue share basis? They 415 00:27:07,200 --> 00:27:10,160 Speaker 1: are for the most part, Yes, And that's the way 416 00:27:10,240 --> 00:27:12,600 Speaker 1: a vote has been built. If you look around pretty 417 00:27:12,640 --> 00:27:15,560 Speaker 1: much every one of the AVOD networks, to the extent 418 00:27:15,640 --> 00:27:19,040 Speaker 1: they've been able to cobble together meaningful a BOD rights, 419 00:27:19,280 --> 00:27:21,960 Speaker 1: they've been almost all rev share. Now that's the most 420 00:27:21,960 --> 00:27:27,399 Speaker 1: expensive content for us today, and so we like not 421 00:27:27,600 --> 00:27:30,960 Speaker 1: having as much rev share content if we can help it. 422 00:27:31,800 --> 00:27:34,800 Speaker 1: Which is which brings us to Sonar and why did 423 00:27:34,880 --> 00:27:39,520 Speaker 1: we buy that library. So if you start thinking about 424 00:27:39,520 --> 00:27:43,800 Speaker 1: our world as managing two things viewership growth, revenue revenue 425 00:27:43,800 --> 00:27:47,160 Speaker 1: growth and reducing our cost of content as part as 426 00:27:47,160 --> 00:27:50,840 Speaker 1: part of building the business. The more content we have 427 00:27:50,920 --> 00:27:54,200 Speaker 1: either created for ourselves and therefore own it or come 428 00:27:54,280 --> 00:27:58,800 Speaker 1: from wholly owned libraries, the lower our cost of revenue 429 00:27:58,800 --> 00:28:03,280 Speaker 1: goes and the higher our profits will be. And so 430 00:28:03,400 --> 00:28:07,240 Speaker 1: we've been first we accumulated enough content to be meaningful, 431 00:28:08,160 --> 00:28:11,560 Speaker 1: and slowly but surely we've been buying up content rights 432 00:28:12,400 --> 00:28:15,320 Speaker 1: to reduce our cost or revenue and increase our profitability. 433 00:28:16,160 --> 00:28:19,880 Speaker 1: And so today about ten percent of those thirty two 434 00:28:19,920 --> 00:28:23,640 Speaker 1: thousand things we have, or four thousand of our episodes 435 00:28:23,680 --> 00:28:28,760 Speaker 1: and movies we own, which is a sizeable library now UM, 436 00:28:28,800 --> 00:28:30,520 Speaker 1: and we don't have to pay revenue share on that. 437 00:28:30,800 --> 00:28:34,119 Speaker 1: We're just paying ourselves. That stuff is our most profitable, 438 00:28:34,720 --> 00:28:38,840 Speaker 1: as is our created stuff. So we're just slowly but 439 00:28:38,920 --> 00:28:42,000 Speaker 1: surely managing the business into a more and more profitable 440 00:28:42,040 --> 00:28:45,760 Speaker 1: place where we can afford to reinvest more in marketing 441 00:28:46,120 --> 00:28:51,160 Speaker 1: and other things. So, who are outside of Sony, who 442 00:28:51,200 --> 00:28:55,800 Speaker 1: are the primary primary owners of the company of Chicken 443 00:28:55,840 --> 00:28:59,720 Speaker 1: Soup for the Cell Entertainment. The primary owner of Chicken 444 00:28:59,800 --> 00:29:02,280 Speaker 1: Super this All Entertainment is a company called Chicken Soup 445 00:29:02,320 --> 00:29:06,720 Speaker 1: for the Sol Holdings, which is the private company that 446 00:29:06,840 --> 00:29:12,400 Speaker 1: I own that UM controls the entire Chicken Soup Sol 447 00:29:12,480 --> 00:29:16,480 Speaker 1: brand globally and owns the book business that you remember, 448 00:29:16,720 --> 00:29:20,200 Speaker 1: and it still is very successful, believe it or not. 449 00:29:20,240 --> 00:29:22,360 Speaker 1: We also have a Chicken Soup for the sole pet 450 00:29:22,400 --> 00:29:28,920 Speaker 1: food business, which is a great business diversification, dog cat 451 00:29:29,000 --> 00:29:33,480 Speaker 1: and treats um and then are really most valuable holding though, 452 00:29:33,560 --> 00:29:36,880 Speaker 1: is now the chicken soup for the sol entertainment business, which, 453 00:29:37,240 --> 00:29:39,640 Speaker 1: as I'm sure you know, is you know, got a 454 00:29:39,720 --> 00:29:42,120 Speaker 1: market cap of over half a billion dollars now, so 455 00:29:42,840 --> 00:29:46,560 Speaker 1: it's starting to be pretty important asset to us. So 456 00:29:47,240 --> 00:29:50,320 Speaker 1: to hear somebody like yourself finding the air, finding the 457 00:29:50,440 --> 00:29:53,800 Speaker 1: ins for an independent company with a different perspective, a 458 00:29:53,840 --> 00:29:57,320 Speaker 1: company based in Connecticut, l A or New York, it 459 00:29:57,440 --> 00:30:00,760 Speaker 1: is you know, this is what the marketplace of ideas 460 00:30:00,760 --> 00:30:04,600 Speaker 1: an opportunity is all about. Well, I I admit we're 461 00:30:04,760 --> 00:30:08,520 Speaker 1: a strange duck in the world of entertainment, but you 462 00:30:08,560 --> 00:30:11,080 Speaker 1: know we are careful and that's why we've been successful. 463 00:30:11,160 --> 00:30:13,760 Speaker 1: We If you look at what we've done, it's been 464 00:30:13,840 --> 00:30:18,280 Speaker 1: three meaningful acquisitions over a four year period. All of 465 00:30:18,320 --> 00:30:22,800 Speaker 1: them were incredibly carefully structured. They were all done in 466 00:30:22,800 --> 00:30:26,200 Speaker 1: a risk averse way. We are a risk of verse 467 00:30:26,320 --> 00:30:28,880 Speaker 1: company with a good balance sheet, with a lot of 468 00:30:28,880 --> 00:30:33,960 Speaker 1: them with cash. We believe there's a great opportunity created 469 00:30:34,000 --> 00:30:38,280 Speaker 1: by the disruption that streaming has brought to the industry. 470 00:30:38,400 --> 00:30:41,280 Speaker 1: And then if we're just careful we can find ways 471 00:30:41,840 --> 00:30:46,560 Speaker 1: as a disrupte two, benefit from that disruption and build 472 00:30:46,560 --> 00:30:48,960 Speaker 1: a big company. Got a very clear vision of what 473 00:30:48,960 --> 00:30:53,360 Speaker 1: we're trying to create the best avid for our viewers, 474 00:30:53,560 --> 00:30:56,160 Speaker 1: and we think about that very differently than other people do. 475 00:30:56,240 --> 00:30:59,600 Speaker 1: Sythe We define that as a very different thing. We're 476 00:30:59,640 --> 00:31:03,680 Speaker 1: not just taking a bunch of broadcast approaches and applying 477 00:31:03,720 --> 00:31:07,680 Speaker 1: them over the top. We're thinking about it very differently 478 00:31:07,760 --> 00:31:11,000 Speaker 1: and I believe will create a better experience for viewers 479 00:31:11,040 --> 00:31:20,400 Speaker 1: over time. Thanks for listening. Be sure to leave us 480 00:31:20,440 --> 00:31:23,920 Speaker 1: a review at Apple Podcasts. We love to hear from listeners, 481 00:31:24,360 --> 00:31:26,840 Speaker 1: and be sure to tune in next week for another 482 00:31:26,880 --> 00:31:28,200 Speaker 1: episode of Strictly Business.