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Hi, everyone. This is Pivot from the VOX media podcast Network. I'm Kara swisher. And I'm packing right now. My Pini. Weenie bikini.
I'm not going to touch that with a ten-foot pole and I am never have a big-time are being dog. That's right. Okay, so this is what it means to be professional friends, with care, and then we decide to make the bridge into friendship after knowing each other for 11 years. We're not really friends. Okay, so okay, so, that hurts my feelings,
Okay first it's like hey let's meant let's meet in Miami. Yeah to go check out some venues and it's like you know I'll bring Amanda she's bored and then it's like oh you know, we have a kid, she goes everywhere with us and then all of a sudden what do you want to leave
it here with like a cracker and look
at and then and then oh wait. Are 16 year old. Son is board the board. Can he come with us? It's coming. It is literally a harem coming over here. I I'm thinking. Do I need a bigger
house? No, yeah I heard your house is big. What can the Swisher's is?
Expect the Clampetts
when they get, I am totally wanted to come suddenly. But I got to be honest. You are my, you are such my liberal Progressive cred. I'm inviting all my friends over to meet Kara and Amanda, they're lesbians. And then I'm going to turn on Christian Amanpour and where my Berkeley sweatshirt and boom. I'm fucking Alan Alda. What
can I expect? The question my purpose. Do I need to bring my own sheets when I
says, yeah, I got a, I got a beer fridge, right? Okay God. I got like a big fat
Flat screen TV. I got video games.
Good? Okay. Yeah, but that's a total and it's a
total man cave and basketball
hoop. Alex is gonna dunk on you. He's very
excited. Well, that's not his mother does every week. He's really good
at it, actually. He's really, really good at it. So this is gonna be really fun. We're to take pictures wearing then We're Goin Down in Miami. I'm still trying to schedule our meeting with the mayor because you keep saying, you can't do things. So the mayor of Miami is going to meet us. We're going to visit all clangs
what mr. Suarez. That's was already a vice presidential Contender,
right?
He is, he was meeting with Nikki Haley. He's a very handsome man and so we're gonna talk to him and we're going to go see some venues. We're coming to Miami or coming to Miami. Miami is coming to us, lets me that is fair. That is your mom is uh this is very take pictures everywhere. Our spouses are going to be horrified with us and we are, that's called a weekday. What do you mean? We will make it gonna be our whole thing, okay, I'm gonna be. Yeah, it's going to be fun. We're gonna have a good time in Miami. Anyway, I'm not bringing bikini.
Wear bikinis that
happened. I got a banana hammock. I gotta sceeto no
end to the oh yeah. Little
killed for big and the twins. Call the speedo. That's right. I like to scare people off the beach. Oh my God, I'm going to be
wearing. Sunscreen, that's all I have to say. Anyway, we gotta get to what we're doing. This is really fun. We're gonna do our
whole episode of Maurice about our Derek sighs.
All righty to, I'm kind of
excited. I'm excited, it's gonna be
great. Listen, it's been a year since we've seen each other really hard so near. So a couple of
storm must have been. Talked about must be rough on you rock on? Yeah, no, it hasn't
been
That's so listen Lena harder, man. Hug hug hug me. Don't even try has been in her confirmation hearings to join. The Federal Trade Commission. She's was real tough. She still stays tough on the on the tech. She's been a progressive big Tech antitrust hero since their Yale law school paper, Amazon's antitrust, Paradox. And now she's in line to be the eft-1 of the Ft c-- Commissioners Democratic Commissioners. Pretty cool.
I think this is super exciting. I think her and Professor Wu are just sort of you know,
Batman and Robin, and I'm and, you know, that's all I'll say she's Batman. So I don't get hate mail on Twitter, but right. Look, I think they're both incredibly thoughtful smart and they're reasonable, right? They're not. I think they recognize that good antitrust is about creating stakeholder value. It's not a, it's not seen through the lens of punishment. I think they're both capitalists, but we are blown by any reasonable, any kind of reasonable standards for any trust greed and it's
Happening. I mean I read somewhere that Google has yes. I'm a couple dozen suits already against them. Yeah. So I'm very excited and only that I've gotten to know, Lena and him a little bit and they're both just incredibly impressive people if you thought. Alright, I want, you know, we all we talked a big game here. Yeah, and I get angry, at least guys
about. We don't know what we're talking about.
Comparing what you want is you elegant antitrust. Oxygenates the economy. It's not a punishment, liberates shareholder value, and I think both of these I
think so.
Of meetings with lawyers like on both sides of this thing. There's others that have arguments against what Lena and Tim have been talking about and so it's going to be an interesting time. I think they're all exciting, call the antitrust. Slurs seem excited to talk about it and what should happen and there's others that don't think there needs to be anything done in here. In that regard, that that market will take care of itself. And so it's a really interesting time and you know, Senator Klobuchar who may come on the show, which will be really fun. Is it has her book out?
Out on it. It's a big topic. It's a big. It's a big topic.
I think it's good for the first time in history. Yeah, both epidemiologists and antitrust slurs. Think people are actually interested in. This are they are people actually want to talk to us? I know that's true. I know it's true for the first time our mom seems interested in what we actually do. That's a
good epidemiologist. Anyway, what are
the way applications to? Yeah, Masters and four schools of epidemiology the falchi factor up like a hundred seventy-one percent
fact, I had interviewed
Ahead of the th Chan School of first way. Michelle Williams dr. Michelle who's a really impressive? And she said they were up a hundred and seventy-seven
percent. You're kidding me. Yep. Wow, so got it, she's amazed
crazy. She's an amazing figure.
Anyway she's married to Heath Ledger right. That means I won. Hello she's a great actress. I can't even single film. She's been in but supposed to think she's a great actress. Got in that sort of
like kinda again, always make the joke that everybody thinks she's Michelle Williams.
Which is really funny. Obviously, the biggest story this week is, Derek Chauvin found guilty on all counts for the murder of George. Floyd last summer, good news, I think for anyone who believes in Justice and bad news for apparently Tucker Carlson and some others, but it was, it was it was a
really fun didn't think he was guilty.
Anyway, they just are going off on it there there and today Alan dershowitz was another about how he should stay out of jail while he appeals this and that. And so
You know, they were there. They sort of looked at it as a negative, I would say so. But
you know, yeah, look, there's a lot here and it's
It does. I mean, I was relieved, I don't know about you. I was relieved. I thought Jesus. This is like if they get this one wrong. Yeah. But I've been thinking a lot about organizations and systems and a lot of those are really reflects fail. I think a lot of the things that have blown up into scandals, reflect a failure of organizations and systems, and that is police receive four hours of what's called. I think nonviolent or D, escalation training. And when you're a police officer, I do think we lack.
An appreciation for your fight or flight or your I'm Angela response to takes over in situations. That is not the case here. I think he had obviously a lot of time to think about what he was doing but I think a lot of situations require a lot more training and also I'm a big fan of everyone talks about strategic hires. I think that government and small businesses and people like to talk about this cannot aspirational and the more Progressive you are, you tend to think it's the system's fault. Not the individuals fault. I'm a big fan of strategic firing descent.
Mr. Chapman had 18 complaints against them. Yeah. And to involved some sort of I believe violence and the reality is he should have just never been on the police force. Yeah. And I think we keep finding reasons not to fire people and because of legal liability or this notion that they need to be retrained or whatever. I'm a big fan that you're not. I believe you're not doing anyone a favor, keeping an eye on them in a job, they're never going to be successful
at, well, you know, the vitamin station signal.
Investigating obviously Merrick Garland announce investigations, the Minneapolis Police Department. I mean, a lot of these, I think I've been listening to a lot of police officers to I found, demings is talked about this, like, what it, what goes into the training and I think that's it's going to be on the front burner for a long time and it should be that these issues. I think one of the thing that was I think ice all over Twitter was that it's it's depressing that we were worried if he was going to be found
guilty after, it was really strange to think. Oh my gosh.
There's a possibility that yeah, I
know that was, I think the most that takeaway I have from that and obviously the shooting right afterwards of a young woman. After that was looked like another knot. This knot in the same situation but it nonetheless, it was another. Why do people get? Why is shooting the place? It goes immediately
and I didn't even more than that. I'm saying her up to the think of those shocks me is, it's never one shot. It's it's in Michigan. I think it was seven shots. Yeah. And I think it goes to the notion that when that that played at flight or fight and
Kicks in, it is very hard. It's just incredibly hard to make rational decisions. Yeah, I
think they're, they're here to serve the people.
Not, oh no, I'm not defending it. I'm saying that that that's my point is when you hear about these things like okay, if you shoot someone wants in the back, you'd think just rationally that's probably going to disable them or take the threat level down substantially and what you see a lot of times is, they didn't shoot, it didn't shoot him wants a shot him seven times. And it says, there really needs to be a great. I think a great deal.
No more training about how to how to modulate encounter, your, your fight, or flight, instincts, to take over here because I don't believe these are all bad violent. People that have a badge and when they shoot someone 7 times, you think, okay? Something like I think that at a minimum, we need to absolutely revisit. There's some great police forces are doing a fantastic job of training people that your job is to deescalate. And and a lot of police.
Get a total of police officers. Get a total of four hours of training around something, Loosely related to D. Escalation, mmm. Anyways I'm I feel much better. I'm relieved. Yeah, this individual is going to be put in prison for the crime, he committed.
Yeah. Yeah I think so yeah. We'll see where it goes and if there's any appeals but at least for a moment of relief and there's a lot of Investigations going on in these in these various shootings which are I'm just reading a clip from The Clique, the
And paper about the shooting in Columbus and it was it just is sort of like from a few food. A with people on either side of the officer fires, four shots in the teens, slumps the ground, a Black Candle blade similar to kitchen knife or steak Knife lies in the sidewalk next to her the man. Immediately yells the officer. You didn't have to shoot her. She's just a kid man. The officer responds. She had a knife. He went after her. It just there's
God. Okay. But to be fair and and it sounds like, you know, more about that situation. I do some of the pictures I've seen of that show and someone
Having another team.
Yes, I got it. I got it stuck. He's talking about how to, how to handle these things. Yeah, it's there was also a picture of a white guy. Hanging off pulling a officer off a truck, he didn't get shot. Like I'm just saying, it seems to SharePoint. They seem to be able to deescalate when it's white people. So anyway, I've seen lots of
that's a very good point. Anyway,
let's let's that we're not experts on this area, but, but Sarah kovin. I hope you rot in prison. That's how I feel about that. Let's talk about Apple's biggest. Push it.
To the podcast space yet and most importantly what that means for us. Of course, this is our big story break down this week. Apple announced a lot of stuff, including a purple iPhone, which I'm going to get immediately, but major changes coming up in his podcast app, including more Discovery options. Better layouts for Publishers space for more content. They'll offer premium subscriptions podcast, Publishers like Pushkin and Rady Topia. They're taking a big again. I think it's 30% Apple first launched a petition.
Podcast in 2006, there was big news around Facebook audio earlier this week which we talked about in Monday's episode with his interview with Casey Newton and the announcements they made. So what is happening here? What do you what do you eat? What do we imagine is occurring, you have Spotify in this space you know Facebook saying they're coming into it in a significant way and and another's the New York Times is doing it. I think box is trying to sort of coalesce around certain people with the preed acquisition. What is happening here from your
And what's the difference between a subscription and sort of these free ad based ones?
Well, we talked to them and it's a question of a few things one. If you own the rails, you let kind of everyone have play time and come up with, with, with their own media and then, if you control the rails, you can begin. Inserting yourself in between folks. Yeah. And starting the margin and I think apple seeds. Okay, this Arbitrage around MPS or people feel more loyal towards the host organization
When they consume media, as opposed to consuming, you know, an iPhone or e-commerce or what have you. And so there, they see the same Arbitrage, an opportunity go vertical and they can, I mean, apple with a mediocre Apple can do for the morning. Show the morning show had a been on Hulu, would have gone absolutely nowhere, but because it was on Apple and they could put it in front of everybody. What was it? The bird box that ridiculous film with? Yeah, with Sandra Bullock. Yeah, I've had to watch it because Netflix decided you
I'm gonna watch it because because they have so much interface and apple will probably my guess is within two to three years, have three or four of the top 10 podcasts because they'll be able to take good and make it great in terms of downloads by ensuring that it just pops up everywhere ricer. They're moving in and they're going to take control out, it'll be an interesting exhibit for there. An entrance test. The App Store needs to be regulated. I don't think they should be broken up but they charge an incredible tax. Yeah it's attached to these guys but the
Staying. It's a really interesting space right now. I think it's probably I think that I think Vox either goes either spax in 12 months or lesser gets acquired because to Jim and Marty's credit, they invested early and it hasn't been easy and often and podcasting you were sort of early here. You deserve something big. You deserve the big piece of chicken. Sometimes, what's here seven years ago?
Here's the thing podcast, you know, have mostly been free until now with
With us relying on ad Revenue that we read when you enjoy doing it. And other, you know, like an event that we might do. So this idea of you know, you think of some stack with the sub-second, again a podcast, for example there, you know more opportunities for for creators to make money. And so the, this is subscriptions podcast subscriptions, why not do that and obviously luminaries one of these companies, but so they can participate in this apple podcasting program to do this.
What do you imagine? Because there's also people there's patreon for some podcasts. There's YouTube channel memberships. There's all kinds of things. What do you how does it shake out? Is it move into sort of that sub stacky and model? And that's how it's now word apparently that I just made up, or does it stay, you know, does it stay in this sort of advertising space because they do. Ab Spotify is a subscription, right? You have to have that and then you get to use their exclusive podcast, will Apple have to buy content, real content.
Well, Apple usually is
At acquisitive, but, but like the the most accretive move in business history, is this move from transactional to subscription and consumers, Marc Andreessen, had a really thoughtful comment. He said that one of the biggest mistakes with Netscape was they didn't build micropayments into the browser. Hmm. And if you look at how much traditional content that's ad-supported is able to monetize your viewership. So, if you watch, if you watch an hour of reads, A Car at which, by the way is like, you know,
Butter on toast of butter. On toast was amazing. Yeah, he's just an amazing hour, but for Rita's, you know, unfortunately freed is surrounded with all this bullshit convincing, you of how much it sucks to get old telling you that your have opioid-induced, constipation, Apple show. Just so, you know, but go ahead. But, you know what, they get for that, they get a total be kept for, pelting you with, yeah, 19 minutes of ads, they get 49 cents. And so, if you could easily, it's not the 49 cents that gets in the way.
The way it's a technology and the friction around payments. If you could just blink your eyes or click a button and you would automatically be charged, 49 cents or your browser had super easy ability to create micro payments, we would have. I agree the move to subscription or just pay you know just micro micro payments would be substantial because here's the here's the dirty secret about the brand industrial complex. It's a shitty trade for you. Yeah, it's a shitty trade, if you
If you only let your kids watch Netflix and don't let them watch ad-supported television, they say, between something like 9 to 13 days a year just in commercials and you think okay that's probably worth a hundred and fifty bucks a year. So there is no I think the future for ad-supported TV is really it's just the sun has past midday on that play and there will be a bifurcation. There will still be a large percentage of the population that watches Fox that has an Android phone and use this a discover
card that doesn't want to pay and is willing, you know, their time is less valuable. They have more time than money and they would rather just see ads and get it for free. And there will always be a big audience for that but the audience is smaller. The revenue stream is a lot smaller than it is right now. We're seeing the Cable Bundle disarticulate. It's happening
everywhere. It'll be interesting. What Apple does because you know, Spotify owns, anchor FM which which is an app that lets you create and distribute your own podcast obviously, Spotify has a bunch of tools for people to do it. You also
State, they've paid certain people to stay within like Joe Rogan and others within the system. Although he's also outside the system and but they've had others, they've gimlet and things like that. So it's kind of interesting to see all these various and different sundry business models sort of running around to figure out what would be right. But apple is the biggest player in this space. If you're on the Apple podcast lists you do really well. She's probably that's where we look right. We don't look at the Android list. We don't look at this and that. And so I think advertisers looking
Look at them. And so it's going to be interesting to see which whether it does become this subscription-based thing where you are part of a team, you know, whether the New York Times even to buy the New York Times podcast, you're going to buy the set up from Amazon or whatever. But it certainly, it certainly still the jury is out. But with Amazon Apple in here doing this, it's both problematic for apple and also, interesting for creators. For sure,
the thing that the mode here is that
Spotify has done an amazing job. I mean if you think about I just think it's remark. What Spotify has been able to do. They've been able to distill an entire medium down to one app, one button and organize it all podcast songs, Tom Petty, George Michael. It's all in one place and no other you know what app has brought all television together. What happens brought all news and stories together from you know respected out. No one has Pamela to is Spotify sopa Spotify as a pretty
Do you know they have some pretty powerful modes but I would this is I would bad. You know, who apples, you know, who I think Apple's first big move and the most under penetrated or the biggest opportunity is in news in business news. I think somebody is going to come up with competitors to one the daily I think apple is going to come up with something that looks like the daily. Yeah. And to CNBC is the ripest kind of old white guy head. Up their ass Joe Karen and Media company in the world. Hey everybody don't take the
Damn it. Seriously, you're overreacting
ahead. Keep going.
No, I'm telling you at some point. Andrew Ross! Sorkin is going to say, okay, I'm sick of the dumb fucking senior home here. I'm leaving the village of stupid. And letting the old angry white guys from New Jersey spread, misinformation disguised as Market information. And he's going to, he's going to be anchor of a new business Network. That is actually, you know. Anyways, I think CNBC, I think there are few media
Companies more ripe for disruption that have kind of sort of early stage prostate, cancer mentality, then then CNBC a message.
It is interesting. You write that lately interested. There's an interesting story here from Android Central Valley. I don't read it often but said Spotify, owns anchor FM, Acro FM launched a phone based app that lets anyone easily create and distribute their own podcast. But also includes analytics. Performance Tools. Monetization options like ability to earn Revenue would know minimal literature.
The ability to do your own ad reads, even ability to raise funds directly from listeners. In addition, to patreon, these tools and services are what Apple's podcast subscriptions are in direct competition with. So once again spotify's binds itself in the crosshairs and in competition with apple which is I think
interesting yeah apples got to be really careful though. I do you guys all have to it's interesting. And this is why, you know, the innovators dilemma, almost, everything Apple, Google do right now. Is this a okay? What are the what is Lena?
And me and Tim will going to do with this move. Yeah. Are they going to use this as is exhibit H whereas Facebook, clearly, I think Mark Zuckerberg is told us team, don't worry about anything. Someone says someone says, as a joke. Hey why do? Let's release Instagram for kids and everyone laughs because that's such an outrageously stupid, things like good idea. Let's go for it. And that's a you realize that that every parent in America is going to freak out and call their representatives like that. I don't care day. Is there an extra dime for Daddy in it? Yeah.
Whereas I think Google and Facebook, Google and apple and Amazon are like, okay, do we really want to poke the bear with a spear
here? Here's the irony. Apple is, was first out of the gate popularizing podcasts. They were, they were, they were the first people, but it hasn't moved in to be sort of the monetization
engine. You, you know, you know more about this person. I think almost almost anyone on this podcast. Yeah, what, what am I signing? Who do you think of the players?
He's here already
with apple because they were the first to do this right there. The first to popularize it in there, the first to really make you podcast the thing. I mean that's where where it happened really? And so who gets to monetize and how it gets to monetize? I don't know. Like, we think about this. Should we have a subscription or should it be free or should it be a hybrid model? I don't think I have an answer yet because once you get into a gated community where only the people that subscribed get it, what do you what do you offer them? Like interestingly case,
I was talking to Cassie Newton who does the Platformers on sub stack which he's getting pretty big. They a bunch of them got together. A bunch of, not just substitute people people on medium in this sort of in the same generalized Tech area and they created something on Discord called side Channel, which is in order to keep subscriptions going, they have to offer them something else. So when you're in a subscription model, you have to keep upping the game. Just like, it's like Amazon did with Amazon Prime. And so they have this Sideshow thing and their first guest was Mark Zuckerberg.
That was great for subscriptions and they've seen subscriptions. Go up each of these various members of this Collective on Discord. That's where they located, because they didn't want them because it was free. They didn't they didn't do it anywhere else, which was interesting. They could have done it on Facebook. They could have done it, all kinds of places and so or Clubhouse, there's all kinds of ways they could do it, but it's an interesting time. It's a very creative and interesting time and I have to sit and think about it. In fact, perhaps we'll do that by the ocean together. Will sit and contemplate business
modeling hams holding holding
Hands. All right.
Did you spread LA roche-posay on the small of my back? My tramp stamp
that's still not be to have a tramp stamp? I'll find out. All right. Scott quick time for a quick break. You like to know? I wouldn't you
and the 45 other Swisher's bringing your breed with you. I mean, literally, there are nine Swisher's showing up where's dr. Swisher. Why don't you roll? What he should wasn't here. I'd love to.
Yeah, he's a good guy. He's a good boy. I had met dr. Swift. Yes, you have met him at you? He'll kill rolling. Don't worry. They'll come.
But they're all show up, we're
a gang is what God knows he rolls into our Twitter feed and I think he is so he is clearly he got out to an early start. Mom I'm gonna be a doctor and then you have jumped out ahead of him. He's like hey love me
Mom. Fuck me. I totally
hijacks our Twitter fight needs a
reaction to my mother. When you see her anyway, I liked it. I loved her family break, we'll be back. We'll talk about Netflix earnings report, not good. And a listener mail question.
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Okay, Scott, we're back. Netflix released its quarterly earnings report and it was not pretty. The company saw a huge slow down in their subscriber numbers. Probably not a surprise. Since there had a huge upsurge, they added about 3 million versus six million. They had expected shares for the company fell, 11% following the news and a shareholder letter of the company said, We Believe paid membership grows slow due to the big covid-19, pull forward in 2020 and a light. Contents late in the first half of this year, due to the covid-19 production delays while they even though,
Pumped out more content than anyone else. Really flash back to this time last year and Netflix was having its biggest quarter ever. Here's what we said back then.
I gotta say Reed Hastings is Flawless. As far as I can tell in everything, so including his weird little bedroom. So tell me tell me what you think of this and what do you think's going to
happen? Well, it's not, it's not surprising right? And but it's okay, so Netflix, I believe, is up 20% year today. So they're obviously accelerating through the crisis. It's what, what do they do? This is a company now worth more than Disney. What they do is they they either by Spotify or they start. Making these massive super interesting Investments as
Did in Madrid where they have hired 10,000 creatives in their creating content that can be morphed into German and Norwegian and Ukrainian content really easily. They just slip in into the same sets of the same scripts different, you know, the hot. The hot star from from Kiev, and they make a cranium version. They're the only company other than Amazon,
Amazon of entertainment. That's
what I understand. Because, by virtue of the fact that there, as long as they manage that incredible story they have in,
In concert with this, that's the peanut butter. The chocolate is access to the cheapest capital in the history entertainment. And they can keep making these forward-leaning Investments. And then the wind of look. The wind of Corona will eventually subside and people will hopefully be spending less time in their homes but they're still going to spend more time in their homes and they did pre Corona. And you have one company that is just going out and absolutely making such incredible Investments and they making if you're if you're making triple the capex of anybody else and you're just as good or better, which Netflix is
You kind of can't compete.
So, yeah, I thought only good. Alright, so they are very good. I still think they're very good, but you know, people think this is some analysts thought, the future growth prospects were problematic once covid ended. When people were not inside, they got an enormous Boost from covid and and they, of course have spent a lot of money there, ahead of people, they also got an enormous amount of competition from HBO from from Disney, from all over the place brick box. I was just watching brick box the other night because I wanted to see something.
I'm so so what happens here they sort of have been lapping, all the other competition and now the other competition has met them and they benefited from covid, which is people are now going out and they're not watching as much and they didn't have enough content.
That was like, did you see the movie defending her life? I feel like we're in heaven. I love that, looking at ourselves. I'm Albert, Brooks your Glenn Close and
word and Meryl Streep.
I'm sorry mouse-shaped. Oh, that's right.
Same tomato, tomato. Not both both amazing. Actresses true. Look, the, the thing that's catching up. I think to Netflix is that the novel coronavirus has slowed production and the reason why I think the most interesting thing here is Disney's progress against Netflix. I think Netflix has almost a quarter of a million subscribers but Disney has breached a hundred million. Yeah. And what Disney has the plays to their advantage in a knot in a
An era of Crisis were production, has slowed if not halted, is they just have the biggest bank, mmm, of content. So,
interest, that's not leave out peacock. It's not doing badly
all the friends and Star Trek. Yeah. I mean, they do have a lot, I just, yeah, it's nothing, nothing matches, the franchise value of Star Wars, or of Marvel, or of the animation, or the kids. So it strikes me that that more than so, the novel coronavirus has been a fantastic wind in the sails of.
Streaming. But it's been especially but the catamaran here if you will or the one that's just able to LEAP out, head relative to the rest little bit of a sailing metaphor from the dogs nautical. Duh, we're not going sale is is Disney. Because they if it's about capital in new production, Netflix wins because they have access to the cheaper Capital. But if it's about if it's about a base of content you have to draw on because production has been has been slowed down its
Then Disney makes more progress in its any of them. And if you look at what's happened over the last 12 months, I mean, Disney has basically gone from zero to 60 in like two
seconds. Yes. Yeah. It's they have meant a lot to
you. You said this before, you don't want to bet against Reed Hastings. Many critics. Here's an
interesting quote from the sky not Chandler from Bank of America. He said, people aren't talking about the fact that they beat Revenue. People aren't talking about the fact that they Crush DPS estimates. People are talking about the fact they missed net subscriber additions in the quarter over last quarter, not year-over-year growth, not even
Total subscribers was just off by less than 1%. So this is really tertiary metric. It's extremely volatile. It's extremely difficult to predict what's going to be in the given quarter. I look at this as a buying opportunity, because if you look at what happened in the past and the times Netflix has missed in the past that on this really hard to predict number. The stock has rebounded immensely. That's a fair point. Like they really have I would say against those previous times they didn't have competitors. And so when you have a Thing covid ending summer happening you know they don't have quite
White enough content and everyone else has some really good content. I mean, I've noticed what I've been watching and it's not only on Netflix and it used to be only on Netflix and I love Netflix, let me just underscore. I think they've ran circles around all these other it. These these companies that are what they've gotten their tricks, they've got they've they've figured out their tricks I think and that's really going to be hard especially as its treat as streaming Wars heat up overseas and and that they can't that they are competing for talent in a way they weren't.
Before, so that's those are all it needs. It needs, you know they had bridger-teton and so now it needs. What else? You know. It's they need to keep feeding the Beast of consumers expectations. I think
there was, I mean, Netflix really benefited from the fact that they effectively had no competition. Yeah, I mean, Amazon Prime came in, but I think relatively amount of capital they spent, I would argue that am Amazon. Amazon was spending.
Hundred fifty million dollars for every, for every me2, like HBO, 60, I mean, they just didn't have the culture punching out creativity at the same efficiency as everybody else. HBO kind of was caught a little bit flat footed. Yeah. And Netflix came in and, you know, arguably given how much they grew the space didn't have a lot of competition. And then competition exploded three years ago, with all these people trying to coming in with kind of, half-baked efforts to protect our Legacy assets of the didn't threaten
Legacy assets and then all of a sudden AT&T got very serious when they took their, their franchises, direct to HBO Max and Disney. Disney has absolutely coming coming like a house on fire. I think it's a
great move by Bill Bob Iger,
but the thing I think the thing you take away and when I, when I talked to companies from subscription as everyone says, okay, it's a better economic model but that's it's more than that. And that is when you go to subscription when you're in transactional model, all you're focused on is, how do I get
The next Consumer in the door tomorrow and your best and brightest are focused on creating more traffic. Whereas when you enter into this, what I call a long-term monogamous relationship, you really focused on the relationship and pulsing value to the end consumer. And you just end up with a more product consumer-focused organization and you end up. I mean, when you think about it, Netflix and HBO, they just have better content and there's no logical reason why they should have better content. There isn't then add supported media, except out supported media takes its best and brightest and sense.
To Procter & Gamble to talk about new ad packages and doing whatever they can in the short term to juice viewership the next
week. Yeah, there's yams creative, they're not as
creative and they can invest for the long term. They can't say, okay, this show needs time to marinate or this show is about not a huge audience, it's about extreme quality and because that pulses value to a smaller
segment, Harry and Megan to the rescue. They have their first series on Netflix. Just so, you know, I think one of the things that there's a really interesting article in CNN, or a mega.
No, that's right there.
That's right. They don't know what her greatest accomplishment today. It is what she has accomplished with every spouse wants to accomplish. And that is she has convinced her spouse that their family are total assholes. I think that's a huge accomplishment. That's what we all try to do. We all try to convince our spouse. Hey, your family, let's be honest. They're total asshole. She's done that. She's
convinced. We'll see how long that lasts. She's convinced them. That's, that's the we'll see, we'll see. And it was in one of the things that the sentence starters - like, did you see that?
To go into Megan territory. Disney has I got her this these ninety
eight year old white people are racist. That's a shocker. That's a shocker.
He looks so sad at the Vance's. Shocker like that Queen? I don't know why. Anyway, we've matched on Tinder and heard you heard.
That's right. That's right. Don't take it. Red onion or two for one long. Two for one Long Island. Iced Teas. On Fridays
exciting. That'll be great.
I wouldn't be surprised if he could play. I wouldn't be surprised. That would be great. Listen, Disney has other's businesses. This is a point that was made to CNN Story theme parks baby Yoda dolls. Etc. Etc ESPN. Comcast has obvious Amazon. Obviously, has all the toilet paper. It sells Warner has its other businesses. Netflix only has its Netflix and so that's one of the problems is, can it get into other businesses? Like they were suggesting ad-supported Netflix, possibly
Other things they could buy. You would talked again in that quote about buying Spotify, on whatever. And so, you wonder what other businesses is going to get into what other to support itself.
They needed a hardware device. They've got a good vertical Netflix. It's very hard in. This is Disney's Achilles heel. It's very hard to get past a quarter of a trillion dollars without investing in and owning the rails because at some point Apple can come in and start. I mean it's just amazing. If you look at Apple across Eric, do you all his Apple gets?
Omer between 3 and 12 percent of the top line revenue of every streaming service. They really are the toll keeper. They are because if you want to access to their app store which you have to have, this is true, gotta pay the tax and so Netflix at the end of the day and Disney to a lesser extent because I guess I have some vertical, they be seated. I got to think these guys are going to get into some sort of dumb device, and that's why Roku is so powerful. And this goes,
pushing the Roku think you're right. I think you're right.
Thank you is the most Innovative company that gets the least amount. Although
he
A quote from Reed Hastings. They were talking about asked about Netflix, second act during the company's post earnings call on Tuesday Hastings. Again, place the company's focus on pleasing subscribers. We do want to expand. We used to do that shipping DVDs. And luckily we didn't get stuck with that. We didn't Define that as the main thing, we Define entertainment as the main thing. So he's sticking with his his plan. I think I would never count out Reed Hastings ever, not once and it
keeps going as a genius, brilliant, as a genius.
Anyway, let's listen, we'll see what happens but
Finally, this has happened before to them and we'll see how they cope, but
it's a harder time that I was. So mean to say, I love car, Carl Quintanilla. I think he's wonderful. Quintanilla continue. I think he's wonderful. He seems like a real
gentleman hard. He's a sweetheart.
Yeah. Alright. So feel bad like nobody there but I had Jacqueline novogratz on my other podcast. Yeah, sure property. And after the podcast he literally said to me in a very sincere way because are you, all right?
And I realized I was just like I do you need and she asked me this sincerely, why ask me this sincerely? She's like she said to me. She said do you need a hug and I thought that was so nice and so early and she said it in such a thoughtful Earnest way. No. And anyways, I'm now I'm all of a sudden looking back on my life. That was the first half of this podcast too harsh. I was too mean I'm assuming
you're not getting a hug from me just so, you know. Okay Scott, let's move on to listener mail. Roll the tape.
You've got you've
got key please. I'm going to be a mailman, You've Got
Mail. Hey, Scott and Kira. Bridget McGraw here from Oakland California. Love you both. I'd like to marry you both, but I don't think my wife would appreciate that her work husband wouldn't either. Anyway, my question is why on Earth nobody is talking about the environmental impact of cryptocurrencies? They are created by computers crunching numbers.
I'd love to know what you guys think. Thanks they like to marry us. You like to marry
us. You go yeah. I say we did first. I know by the way, you show up with her, I wouldn't even notice. You could literally show up with prince Andrew and say, oh, it's my older son and I would know. There are so many strangers showing up in my house. Is that? All
right, listen to me. I know you're getting triggered here but we did to, I have talked to thank you for your great question. Bridget, I do talk about the environmental impact of cryptocurrencies.
Interview people. We talked about it at length and a lot of these kind I think I've written about it and I think we've talked about it here. Is that there's an enormous environmental impact? There's all kinds of movements to change the way Bitcoin and other cryptocurrencies are mined in order to be less less problematic on the energy grid. A lot of the the mining is done in China, which is not under everybody's control, but there are all kinds of movements with creators and those involved in it to want to make it more environmentally.
Mentally better I guess. And so they're changing it. There's a thing called point of work and pointed, whatever there's all kinds of ways, they're thinking about doing it, to make it more efficient from an energy point of view. But right now yes it's a real. It's a real drag on energy. Grids Scott.
Yeah this is like everything involving crypto. It's a religious war and on one side of the war you have okay. So crypto is now consuming more electricity than Argentina and
It really is an issue. The power consumption here is and then the and then subsequent carbon footprint is a real issue. Now, on the other side of the of the argument is 75% of mining takes place or is geographically located, close to alternative energy sources. And that a lot of people feel that crypto in fact, might subsidize the development of alternative energy sources because a lot of crypto mining is locating near Hydro facilities and thereby creating more
revenue streams for alternative energy. Thereby, if you will subsidizing it or creating more demand for alternative energy, so there's two different, two different ways to look at this, you could argue the crypto is only Expediting. What is, you know, perhaps the crisis of our lifetime, which is climate. And then other people say, no crypto is actually Expediting. Expediting the move towards Alternatives. It's just it's what side of the argument on. I don't have a Viewpoint, I don't have enough domain. Expertise to take one side or the other but it like everything crypto. It's very
I find it. It's hard to get your arms around it to say. Okay anyways I find this stuff. It's fascinating but the amount of energy and all that the amount of energy consumption is only going to go up. So it'll be it'll be it'll be fascinating to see but the primary input or cost for minors is is energy.
So they're there but there are there are efforts to do cryptocurrency more sustainably and they're addressing and immediately actually compared look. It takes a lot of energy to make a dollar.
It takes a lot of energy to make
that, right? It's a fascinating
stat. Yeah. What the
what did it takes? A lot of energy to make it. Do
anything you're going to use for anything as creates energy, but it's always causes energy to took. You want to make dollars to make coins, to make all kinds of things. Has an impact on the, on the, on the world. We just don't talk about it, but I think people are talking about this quite a bit in the cryptocurrency space. I don't have a conversation with cryptocurrency people of any repute that they don't care about this issue and and especially creators and other
Others are worried about this and buying carbon Footprints, when carbon whatever offsets and this is that they're doing. And so I think it's good. It's I think Scott is right here, it's going to be a, possibly a change agent in a good way rather than let's just make a big old carbon mess here and you know, look, is it, there's a question, is it a reason not to invest in crypto? We shouldn't invest in anything like Disney Parks, use a lot of energy so does like, if you start,
Really think about the carbon footprint. We all have breathing is a carbon problem and so, so it's an interesting thing, but I do think the industry as it becomes more in the mainstream is going to deal with it in a way that's and they're already doing all kinds of stuff around how they all the proofs happened. Again, I'm not an expert, but I certainly have heard about it extensively.
I've been thinking a lot about crypto and I think the discussion around the environment and it's a worthwhile discussion, but I think it actually benefits.
It's crypto because I think there's a much bigger concern around crypto that doesn't get nearly the attention it should. And that is its threat to. The USD, is the default currency in the people just don't recognize our greatest asset to our greatest. I don't know. Our biggest are, our biggest bazooka for us. Is that our values? I would argue wrapped in the steel hand of incredible ability to deploy force and violence across the world. A hundred thirty-eight basis over
He's aircraft carrier squadrons that can deliver you know, could deliver unbelievable force close. Number two is the US dollar as the default currency, 60% of Foreign Exchange is held overseas are held in dollars. And that usually means it runs through a u.s. bank, which means we have transparency and influence over almost every organization in the world that wants to participate in the global economy. And the reason that China's all of a sudden jonesing to create their own crypto. The reason India is playing The Reluctant bride and might step
Pin and support one Crypt over another, if the USD goes from 60% to 40% to 30%, that's almost the equivalent of taking out. Several Aircraft Carrier, Squadron in terms of our foreign influence and no one's, no one's really talking about that. And and my fear, my real fear here is that if you think about our lawmakers and Regulators, they used to be kind of citizens that came from industry. So they came from the oil industry because there are a lot of people in energy. They came from consumer products.
Sort of understood the externalities of oil or aluminum or a financial services, they sort of understood it. Because a lot of people came from that, the tech industry that domain expertise, the gap between the actual, what's happening in these industries and, and trying to understand them or domain expertise that leaks into our elected representatives at Delta. So huge that it creates an extraordinary opportunity for delay, an obfuscation and what you end up with this because a percent of our elected officials, don't understand technology technology.
Le-ge-teh continues to wreak tremendous damage and we don't know how to regulate it because all the regulars are elected officials are catching up. That golf is even wider between cryptocurrency and elected representatives, understanding of crypto. And I worry that similar to just has big Tech has run unfettered for way too long, right? I think it's going to take us. Our elected officials a long time to catch up to the externalities of crypto. I think it's a huge
threat. Yep. And they don't love to talk about it. I can tell you that, I've been trying to get a lot of the more
People talk about it and they certainly going to have to on some level
it's because we're all scared to look like idiots. Yeah,
people ask that every day about Krypto. I don't think they get it. I think they don't understand it
and you get it. I don't feel as though I gotta do
on a big level not on a, not on a specific and what, and the impact I don't, you know, you Peter teal on one side talking about the impact and you sort of her like it makes sense, and then and then there's others who to say this and that anyway, it's an important time for her and say, let's just say, all right, Scott, one more,
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Okay, Scott you already gave us some predictions earlier this week, but it's Friday and we want more more, we want more.
I think Val demings drip representative times, kind of just had her moment. I think she'll be the Democratic nominee for governor in Florida, which makes her a vice presidential candidate for the Democratic party,
explain what she did for the people who
did all she just learned watching TV moments 1207 righteous indignation, when representative Jordan who I think is one of the kind of, he's kind of Representative Gaslight. I mean, he takes pride in like the defense all of a sudden.
The kitchen's finding finding an incredible defense and Afeni t for the good work. Police do when they commit these sorts of atrocities. And yet, they don't seem to empathize with police when they're bludgeoned with fire, extinguishers at the behest of a mob encouraged by some representatives in Congress and our president. It's just, she pointed out that protecting or endorsing or supporting officers in uniform which
She was four, I think 24 years, dude. Rings Hollow. When you it's just purely, you know, when it's convenient. And I thought
politicizing the police for his own gay
and I think everyone I think at least here in Florida, a lot of people are seeing that clip and I think she comes across as very strong and I thought, you know, that's, that's, that's the person that should have done great about her. I
think she's these issues are really complex. You can have, you know, look, she was a longtime police officer. There's really cheat. She recognizes the
Laxity of the job and the and the and the abuse is and once they have a real discussion about it versus him who just wants to, you know, they just want to reduce everything to a ridiculous cartoon characters of each other and she's not having it, you know what I mean. And also, by the way, she has more respect for the people that police serve are supposed to serve than he ever would and does. And he also doesn't, it's like, those people that sort of her, like, I'm for the military, never been in the military and lecture people who've been in the military and
Also, people who have problems with the melody, you know, he doesn't want a complex society because then it's hard, then it gives a hard situation. And so he's just a worse than a gas later. He's a reductive nincompoop really, that's what I
would say. And I have a couple more. I think that just as we work Rose From the Ashes, you're going to see another brand Rise From the Ashes and that is Quimby. And it'll. Yeah, yeah. Quit, be or at least the content from Quebec.
Roku various places, right? Roku is looking at it,
Rock about it, I think bought it, right? And I think they're going to bring a lot of that content and short-form quick bites. Hmm. Back to life and I think all of a sudden Roku and it's vertical content. This is a gangster movie. No one's talking about Roku has the hardware. They have the rails
own Roku. You love talking
about Rome. No, I don't own Roku. I wish I did. It's been one of the best performing stocks the last decade you love that coup incredibly bright CEO. He's probably I mean hehe again.
It's kind of what I would call the kind of the many Reed Hastings. So they are to that - our strategic blue flame thinking can we get him on our show please? And also there was one of the early product guy Steve Shannon is one of the brightest about us guys I've ever met anyway. So but Quimby is going to be pretty I think Roku going vertical and I know if it's branded quickly but I think this quick bytes in that format and that jumpstart that it will give Roku around vertical. Content is really interesting and I think we're going to hear more about that and the other thing we're going to hear more about can I just interject sir
Every idea around Quimby wasn't bad, it's easy to make fun of katzenberg, but he is still a great programmer and Ricotta, and there was a lot of good stuff on there. It's just something was wrong about it, but it wasn't. Some of the content for sure. Content wasn't really, the biggest problem there.
Yeah, it's just that they were trying. They were trying to charge you get a dollar for every billion dollars in content from the most the streaming services and they were trying to charge a box in shock or people didn't want to sign up for every billion dollars in kind of anyways.
Also, I think we're going to have a much broader conversation around the role in whether or not Elite universities. Should in fact, be nonprofits. And that is if Harvard is accepting, 3.4%, if 54,000 people are applying and they're accepting 1700 to fill a glass of 1400. So 1400 people, a Starbucks will serve more people than that in a day. And yet, they sit on the GDP of El Salvador. It's like, well, okay, it's Harvard really, a non-profit is their mission. Really.
To do to make Society better. You know, what is exactly the mission of these Elite universities other other than to make the faculty, the alumni that already have a degree and the leadership there feel like some douchebag who shows up in a Lamborghini with a diamond-encrusted Rolex and says, look at how blingy and look at how rich and prestigious. I am, I think that is really where these universities have gone, they have decided that their luxury Brands, not public servants. Yeah. And I think people are sick of it and I say, should they be able to buy
Real estate. And then not pay taxes on that real estate when they scrub it. Yeah. Or they make it and what is the point if a non-profit is supposed to at its core be adding social good and that clearly isn't it the at the Forefront here? You know that you know how in my the thing I hate the most I God I
just hate it. There's so many things you know when
someone
When someone says, oh, I went to school in Boston, it's like, okay, and what they really saying is I want you to know. I went to Harvard without actually telling you. I went to Harvard. It's like that whole thing. Tell me you're a total douche bag without telling me you're a douchebag. Then just just say, you went to college in Boston, I find that this this Elite luxury. You hate our massification. And I, and my university is guilty of it to where we have decided their prestige.
Exclusivity is the is the benefit. We provide ourselves and other people. You're not a non-profit, your Chanel. Okay, fine. There's a market for it but you gotta pay taxes. So I think there's going to be a bigger conversation around Elite universities where you're seventy seven times more likely to get in. If you're in the top one percent of income earning households, there's more people from the top 1% or third of the top 105 of the ivy League's in the bottom 60%. And we're going to have a more thoughtful conversation around. All right, are they
Ali nonprofits. Are they really what is this social good here? And I think that's a conversation that's going to go front and center and it's overdue.
All right, I like all those. That's a lot of predictions are many predictions. Scott Galloway. Here's what I predict. Yes, we are going to have a great
time. Are gonna have a great time. I'm making plans for us,
Santa some headed down, get ready for Kara Swisher, that's
all I gotta say. Prince, Andrew and your carry-on luggage. Who else is coming down. Lucky's coming down your
aunt.
I mean my mom lives there for this winter and then my aunt has to, that's why I gotta clean up. People, they're not there to think I just show up at your house. They might look through your things right. 14 people sense of items and then leave. That's what we're like. That's the Swisher family, that's how we roll. And I'm coming down people of Florida, so put your mouth. So mask up is what I got to say to you
- happened,
know what I'm going to make some noise around that issue. I'm just like so excited to Florida Isaac and Matt gaetz, can't wait to see you rep Gates
It's he
doesn't live in Florida, he lives in the Panhandle that Florida. I know what that is.
No, he's gonna be in Miami and some Club. He's gonna like when I Sidle up to him. Yeah, yeah, yeah. Give him a big old bear hug when I say on the pig anyway. All right,
don't forget all together how so,
so much. Good, Florida, fun. Anyway, don't forget if you have a story in the news and want to hear our opinion on, submit your questions to NY mag.com pivot, Scott, Reed us out.
Today's Show is produced by Rebecca synonymous. Our Neanderthal engineered this episode. Thanks awesome.
DeRozan injury Burrows. Make sure you subscribe to the show on Apple podcast or been Android User. Check us out on Spotify if you like the show. Please recommend it to a friend. Thanks for listening to Pivot from VOX media. Will be back next week for another breakdown of all things. Tech in business, the Swisher Posse. There's Swisher Posse all 73 of them are coming. Are coming to hang out with the dog in his pack. Oh my God, what a
thrill. Yeah, there can be only one. Let's see who survives this particular show.
