Pivot · May 17, 2022

Twitter's Lots of Bots, Netflix Isn't Joking With Employees

Automatic transcript of the end of the episode, from 37:24. Speakers are labeled by software and may contain errors. Highlighted passages are Scott’s predictions.

Scott Galloway · 37:24 It's only being seen by one out of third people that we report. So the financial incentives are there for them to ignore this except from the most blatant. They could enforce identity. The bottom line is he... Right now, he's the... With that statement, he's the second most full of shit person in the world regarding Twitter, just behind Elon. And I'm sorry I'm hopping around, I can't help it. You know what has become super interesting to track? Every time Twitter stock goes down because of the likelihood, or the reduced likelihood that the acquisition gets closed Mhmm. Truth Social goes up. Truth Social is now trading on whether or not they think Elon will get control of Twitter. And if if if he gets control, it means Trump goes on there. If they... He doesn't get control, it means Trump stays on True Social. So every time the likelihood of a deal Oh, wow. Of Musk going That's totally Kara Swisher · 38:12 separate from this. Yeah. Scott Galloway · 38:13 So True Social is up in a down market substantially today because the likelihood that Musk gets Twitter and Trump goes on Twitter has gone down. It's really... It's so interesting. The likelihood of this deal going through is now controlling true social stock. Anyways, a bit of a digression. Kara Swisher · 38:31 Anyhow, we'll the bot issue is a big issue, and it should be cleaned up by all these people. Let's move away from Elon part of it. This has been a ridiculous problem, including getting people all jazzed up about, in a good way and a bad way, right, about things. And especially young men, getting them all excited because they think everyone's in on the joke or let's all pile on and be asshole. So it's a real, bots are a real problem except when they're useful, which is sometimes. So... Scott Galloway · 39:00 I'd be willing to give up those cute little bots to get rid of all of them. Really think it's the the sewer of the Internet. Kara Swisher · 39:07 It is. It is. Scott Galloway · 39:08 You know what it is? You know, It's one thing if someone disagrees with you, but when they have a mask on or they create hundreds of fake people to yell at you outside They're your peeing Kara Swisher · 39:18 all over the place, yeah. Scott Galloway · 39:19 And they're anonymous and you don't know their true intentions, it really is. And the sales team at Twitter and the CEOs there for a long time have all ignored it because that way they can lie to their advertisers and say, look at our daily active usage. Kara Swisher · 39:34 Yep, yep, I agree. I think you get particularly attacked by bots. You can just see it. I'd love to have someone look at your feed, like, who's attacking you. Scott Galloway · 39:42 Oh, I have. [Ad break] Kara Swisher · 39:42 of bot. Scott Galloway · 39:43 I have. Kara Swisher · 39:43 Yeah. Bots. Bots. Bots. Scott Galloway · 39:45 I I know this sounds paranoid. It's it's a mix of of Troll Farm sponsored by Russia, and it's bots sponsored by venture capitalists whose septic tank they call their portfolio, I have questioned. Kara Swisher · 40:00 Alright. Okay. Well, in any case, big deal, but not to this deal. Anyway, Scott, let's get you a listener question. Scott Galloway · 40:07 You've got you've got I can't believe I'm gonna be a mailman. You've got mail. Kara Swisher · 40:12 This one came from email, Bill from Vermont, so I'll read it. Hi, Junglecat and dog. I enjoyed your podcast. Thank you for the useful content. You both praise Airbnb, but I was hoping to get your thoughts on its destructive impact. In Vermont, there's a housing shortage for middle class housing while many houses are basically vacant except for one to two weekends a month when rich people from Boston and New York come up and rent them. This allows owners to pay the mortgage, but actually damaging the community. Regular Vermonters are priced out of owning a house. Communities are hurt because many houses are primarily vacant, then they're occupied. Often, it's a party of a dozen of people for a weekend, which is annoying. Hospitality businesses are hurt because they lose customers. I assume many communities are dealing with this. How can Airbnb be structured in a way that doesn't remove the huge swaths of housing from inventory for long term renters? Bill, that's a very good question. It's been the longest question for Airbnb forever in cities, mostly. I have to say on Vermont, I'm gonna push back. People have owned their homes there and not rented them for... And rented them forever, rich people coming from Boston and New York. And so I don't know that you'd be owning this house if they weren't but for them. So I think they've always been doing it and just Airbnb makes it easier. So I don't think people were staying at hotels except to do this. They were renting places up in that area. I don't know, what do you think? Scott Galloway · 41:27 Yeah, have a bias here. Airbnb is my largest holding, and I'm an enormous, I like Brian Chesky so much that I send him dirty text messages at 12:30 at night. So I have a bias here. But one, it's a nuanced argument. There's a lot of people that can afford their house because they Airbnb it. So it actually makes housing more affordable for some people. Now having said that, when somebody, what I do agree with, when somebody goes into the business of Airbnb ing and they rent 10 apartments, and then they they turn them into full time Airbnb, and they don't pay taxes, the hotel taxes that support our infrastructure Kara Swisher · 42:04 But they do. Scott Galloway · 42:05 Well, they've started, but it's still it's still spotty. Kara Swisher · 42:09 They do. No. It's not. It's not. It's not. It's not. Scott Galloway · 42:12 You're saying that in every state, Airbnb Kara Swisher · 42:15 I think in every state they're required to. Yes. 100%. That was water under the bridge for them. Scott Galloway · 42:21 Okay, so there's the tax issue, and it sounds like I'm gonna defer to you on this because it sounds like you're more But knowledgeable on there's also an issue around, buy properties and rent them out, and I've been doing that for over a decade. And there are developers now who say we need these homes in the community so investors can only buy a certain number. And I think there's some legitimacy to that, that if you're in the business that certain cities might say if you own the home, fine, you can Airbnb it. Or if it's your primary residence, you can I Airbnb do think it makes sense to limit the number of units that Opportunistic can Airbnb? Yeah, that can be taken off the market for the sole purpose. Because what you're doing is basically converting, residential into rental. Kara Swisher · 43:04 Or possible residential. But I would Scott Galloway · 43:05 argue that this company based on, if you look at any company that's reached $100,000,000,000 in tech, I would argue the emissions and the externalities are as low or lower here than any other company that's created $100,000,000,000 in shareholder value. And also, think Brian, yeah, I'm a total sick of that here. I think Brian is very attuned to this issue and has tried to be responsive to it, but I think it's a legitimate question. Kara Swisher · 43:28 Well, they still have the party issue thing, and that's what he's talking about, 10 people room Have you stayed Scott Galloway · 43:32 at a hotel? I party in hotels. What's the difference? Kara Swisher · 43:34 Yeah. I get that, but I'm just saying parties in the houses and neighborhoods. Scott Galloway · 43:38 I try to have orgies. No one shows up. Kara Swisher · 43:39 There's a difference between having a party in someone's neighborhood versus in a hotel setting, but that's okay. That's fine. I think one of the issues, this is going to be their issue forever. It's sort of a push pull between people who are using their homes as capital and in a capitalist way, which they should be able to, and people who live in neighborhoods who don't like, people tromping through with their pulled suitcases, often in just cities. And in this case of Vermont, Vermont is a vacation state. I think tourism, I don't know if it's as big as, but it's got to be right at the top. I think people have been doing this for years. They just, people have more of an opportunity to rent them than they used to maybe, and maybe there's more in and out, and that could help the whole community if more people go visit places. I know that Brian talked about, you know, people living in places longer, rural areas that are relatively close to the city. But, you know, I think this is this is gonna be a problem no matter what as people exercise their real estate for capitalism if they want to. But Scott's right. If there's sort of a people that would have otherwise built homes for regular people who are living there full time, it could create a screw up in the marketplace. Scott Galloway · 44:45 You're going to see more stories on this because we're with one and two bedroom apartments across America on average up year on year 2028%. You're just going to see a housing crisis. You're going to see a lot of people living out of their cars. This is going to be this is going to be a really big issue. Kara Swisher · 45:03 Anyway, Scott, one more quick break. We'll be back for predictions. [Ad break] — Predictions segment begins — Kara Swisher · 46:02 Okay, Scott, let's hear some predictions. You kind of made a couple of the tsunami thing with the police people. Scott Galloway · 46:08 No, my prediction comes from, I'm parodying the founder and CEO of this great, this kind of hot VC firm, Activent. And the guy who started was a guy named Steve Saracino, and I spoke to him over the weekend and he said, you're about to see inflation's heavy hand. The only means of controlling inflation or that will inadvertently help inflation is you said you're about to see the great layoff. It's gonna be amongst Great layoff. The unicorn folks that we have been just hiring everyone for so long. And it didn't matter. Just grow, just grow, just grow. Pay them what they want. These companies now are gonna go into a room and go, we need to reduce SG and A by 20 or 30%. Mhmm. And they're gonna... I mean, it's just happening. It's happening everywhere. And they're in the planning stages right now. People are being thoughtful. Gonna see every 24, one to three stories, you know, that that that Kara Swisher · 47:05 This is mostly tech. You're talking about mostly tech. Scott Galloway · 47:07 Oh, no. It's it's it's it's the slang of the unicorns. Call it whatever you wanna call. Frontline workers, our employment's gonna be really strong. You know, Panera, we just can't get. We can't find people fast enough, and we need people, and people have money. It's gonna be the slaughter of the unicorns and or the jockeys. I don't know what the right metaphor is. But you're about to see the great information age layoff, over the next six to twelve months. That company, that site layoff tracker is about to get really, really active. — Predictions segment ends — Kara Swisher · 47:39 Alright. Alright. In the meanwhile, Panera, can I get a job there? I would like to make sandwiches. Scott Galloway · 47:44 They're really nice people, by the way. Kara Swisher · 47:46 The management team are really nice. How are they getting people? Money, right? Scott Galloway · 47:49 They're paying more, and they're also very serious about worker training and trying and offering healthy food and trying to fashion a career. They lift people out of their cafes into management. They're really like... Anyways, I'm I'm biased. Was... I served on the board there, but the management team there is willing to sacrifice profit Kara Swisher · 48:13 They're have to. For They're gonna have to. They're not Scott Galloway · 48:15 gonna be just so you know, their business is killing it. Killing it. People can't wait to get out of the house right now and order everything. Kara Swisher · 48:24 Every restaurant business. Crazy. Everywhere I go now, it's packed. Scott Galloway · 48:28 And you want to hear another great stat? Over 50% of their orders start digitally. Kara Swisher · 48:33 Ah, sure. Isn't that crazy? Same thing with Starbucks. Go to the Starbucks, but I do it digitally. No, not at all. I think it makes perfect sense. Okay, Scott, let's go for today. I'm gonna get on a plane for Germany. Scott Galloway · 48:44 I love fly rooting. How are you getting to Germany? Where are you? How are you getting there? Kara Swisher · 48:47 Through Frankfurt. Going through Frankfurt. Oh, God, Lufthansa? That's Lufthansa, yes. Yes, Wind Dancer. Wind Dancer. That's what Wind Dancer. Yes. Are you going do a German Scott Galloway · 49:00 accent We have. For Kara Swisher · 49:01 Please don't. Have. Scott Galloway · 49:02 Is there economy comfort where we call it Poland and we invade it mid flight? Kara Swisher · 49:08 You know what? I'm so glad you're not on my flight. In any case Scott Galloway · 49:10 They love me in Germany. I'm big in Germany. Kara Swisher · 49:12 Perhaps, but not with a fake German accent. Scott Galloway · 49:14 By the way, the big rumor is Lewandowski is coming to Chelsea. That is big news in this household. Kara Swisher · 49:19 I don't know what that is. Okay. Scott Galloway · 49:20 Supposedly Lukaku might be going to Bayern Munich. This is big news. Kara Swisher · 49:24 I don't care. I do not care. Do you know who I'm gonna see in Germany? You're gonna miss Ashton Kutcher. Scott Galloway · 49:30 Oh, that's right. You're interviewing Ashton Kutcher. Ashton's very handsome. I met him once. Yep. God, I couldn't stop looking at him. Kara Swisher · 49:36 Ashton is very handsome. Scott Galloway · 49:38 Yeah. And he's a tech investor too. Right? Kara Swisher · 49:41 Very successful one. Yes. Actually, he is. He's a Scott Galloway · 49:43 lovely guy. What else are you doing at the conference that I can't go to? Kara Swisher · 49:46 Oh, I'm cleaning up a lot of your mess is what I'm doing. Scott Galloway · 49:49 You better bring a big shovel, my darling. That's a Kara Swisher · 49:52 lot of cleanup on Isle Dog. It better be a check, a Kara Swisher check headed my way around I'm nice sorry. You got us invited. You did, but you're not there. It doesn't matter. That's right. I'm literally like, well, I must bring my wife, Kara. And they're like, oh, we love Sarah Schwitzschaw. Alright. Get it out of your system. Scott Galloway · 50:09 Love Germany. Kara Swisher · 50:11 I'm going to the royal premiere of Top Gun in London. I'm gonna fly to London for one day, so you know. Scott Galloway · 50:15 That was pretty awesome. Kara Swisher · 50:16 Is I'm Tom Cruise gonna be so excited. I'm gonna totally like, should I, yes, I'm gonna totally bear hug him. You think that'll work? Scott Galloway · 50:22 I would bet Tom Cruise would really like it. I've almost like had a soft spot for Tom Cruise. Something about him being a great actor and really handsome and a leading man. Kara Swisher · 50:29 I guess. I just can't get past the Scientology, but nonetheless. Scott Galloway · 50:32 Okay. Everyone has their has their issues. Kara Swisher · 50:35 Okay. Well, that's a biggie. Okay. Scott Galloway · 50:37 Will you get a selfie with Tom Cruise? Kara Swisher · 50:39 I'll try. I'll try my best. I'll try. I don't think they're gonna let me near him. Anyway, that is the show. We'll be back on Friday for more. Scott, read us out, and please don't do it in a German accent. Thank you. Scott Galloway · 50:48 Today's show was produced by Lara Niemann, Evan Engel, and Taylor Griffin. Ernie Intertot engineered this episode. Thanks also to Drew Burrows and Emile Severo. Make sure you subscribe to the show wherever you listen to podcasts. Thank you for listening to Pivot from New York Magazine and Vox Media. We'll be back later this week for another breakdown of all things tech and business. Lewandowski coming to Chelsea. Swisher going to Hamburg. The world has been turned upside down. [Ad break] Scott Galloway · 52:23 See store [Ad break]