Kara Swisher · 28:57
Is gonna enter here. They haven't entered news very much. You know, they've talked about it, but haven't entered anything that's not something that you go back and redo. So which one? Is it Amazon? Is it... Which one needs it? Apple? There's... There'll be Amazon, Apple, GoogleYouTube, Facebook. Which of those four? If you could look at each of them, why they might need it? Go through them really quickly.
Scott Galloway · 29:19
Well, Facebook, I mean the obvious one is YouTube because it's basically the largest TV network in the world. Facebook could do really interesting things around micro targeting and they also wanna jumpstart video. Could see, I don't think, for some reason, don't think it fits the Apple brand as well. I guess they could sell a lot of iPhones if they were the only one that brought you into the NHL or whatever it is. Who it will be in my view is Amazon. Because one, they have the deep pockets. Two, they have Prime which they're trying to juice and they can monetize that investment several different ways as you say, through people buying paper towels and prime. Also it's got the key asset. And the reason why they will bid on the Super Bowl is it's run by a man who's in the midst of a full blown midlife crisis who wants to take his new girlfriend to the Super Bowl and be the man.
Kara Swisher · 30:05
He can go to the Super Bowl. Can like
Scott Galloway · 30:07
Yeah, but not that this will be the Bezos Bowl. If Amazon starts broadcast, that takes it to a new level. He's not only the big dog, he's the biggest dog. If it's the Amazon Bowl, that'll be a lot of fun. It'll be Amazon because of a midlife crisis. All right. These companies are run by 50 year old men. Two
Kara Swisher · 30:26
So thirds happens of the decisions they make is around Disney you just bought the Fox, so they got all those sports, right? What do they do? What does a Disney or an NBC or CBS do?
Scott Galloway · 30:35
Well, slowly but surely, as we've said, anything with advertising, it means you're poor. Ad driven programming has become the tax that the technologically poor are illiterate and the poor pay. But here's the good news for these guys. There's a lot of income inequality and a lot of people who don't have the money to buy $40 worth of Apple downloadable programs for their kids. So broadcasts or free television, unfortunately, the population for that is not going anywhere. Things always take longer to go out of business than you'll think. I think these businesses from an investment standpoint, I think broadcast networks, will actually be a good investment because everyone including us is talking about their imminent demise. In 1999, you could buy a blockbuster franchise for two times cash flow. And everyone knew they were going out of business, but they were around for another 13. So they were actually a great investment. I think Macy's right now, and I get so much shit every time I bring up the word Macy's. Macy's might be a decent stock. Because yeah, Macy's is going out of business, but it's not going out of business as quickly as everyone thinks. So I think broadcast
Kara Swisher · 31:38
networks
Scott Galloway · 31:39
will absolutely go out of business, but the death is less imminent than people think.
Kara Swisher · 31:44
Oh, speechless. That was a lot. That was a lot. This was very... This is very substantive. I... This is... You're absolutely right. You've made... You've changed my thinking on this. I thought the I thought the tech companies would swoop in too, and I... They have not. And that... That's a very interesting thing. So let's go very quickly then to wins and fails because I... Again, I... Speaking of wins, I thought that, SNL was very funny this week, and one of them was a Macy's ad with kids. I don't know if you saw it.
Scott Galloway · 32:08
It was
Kara Swisher · 32:08
a very funny take off on those Macy's ads where families are all like wandering around smiling and laughing, and they did a great thing about how difficult it is to put clothing on children. And so it was very funny. They did a great job. And then the best one they did was obviously the Conway marriage. They had Scarlett Johansson on the show, and they did a version of a marriage story with the Conways, and it was very funny. Like, they are really very funny from week to week in a way that I think I can't imagine having that much lasting power. That is my win this week. And my feel obviously was Hallmark, but they've redeemed themselves, so that's mine this week. What is yours?
Scott Galloway · 32:42
So my is Hallmark. They screwed up, they owned it. It's a great company. And I liked that the CEO said
Kara Swisher · 32:50
Why is it a great company? Explain the great companyness of it for me, please.
Scott Galloway · 32:54
Well, this is a company that sells greeting cards that by all all standards should be out of business. I mean, you were to look at a company thirty or forty years ago or even twenty years ago and say, okay, what do you do? Well, we print cards and we charge $2 for something that costs 7¢ to make. And you think, is that company sustainable? And they've made huge investments in different mediums. The Hallmark Channel is arguably one of the most successful media companies of the last hundred years. By putting Aunt Becky who's about to go to prison for ten years on a bunch of shows talking about her husband cheating on her and then a story of her finding more strength from these tragedies. They have sold so much cereal, so many Pampers and they have created so much shareholder value. And the shareholders or the owners of that company have been really wonderful, generous people in a state that needs business and needs wonderful, generous people. University of Kansas is a fantastic school. I just like the company. I think they're smart. They're innovative. I think they could have gone away. They took big risks and it's a great company. So I'm more talking about the company than this instance. But they owned it. They made a mistake. They owned up to it. I thought everyone that went after them showed grace and said, Thank you for apologizing. People weren't trying to rub it in their face or anything. So I felt like the whole thing, and it brought some awareness that we still face this bullshit in corporate America. Just when you thought it was safe to go back in the water, a great company like this one makes this what seems like such foul an or penalty. It was just a stupid thing to do. So this is still out there, people's mentality that they will do these kinds of stupid things. On the whole, I thought it played out well. So my win is Hallmark.
Kara Swisher · 34:31
I don't think they're still gonna be making a Hallmark movie about lesbians anytime soon. They've talked about it. The CEO has talked about that idea, but I don't see it like a romance. Like the Buddha... Like if Buttigiev becomes president, I don't see the Hallmark show about him and Chase meeting each other. That one.
Scott Galloway · 34:45
I don't see that. I don't
Kara Swisher · 34:47
see it.
Scott Galloway · 34:48
Who's your loss?
Kara Swisher · 34:48
Think they'll go
Scott Galloway · 34:48
so My loss is the climate summit in Madrid.
Kara Swisher · 34:55
Oh yeah.
Scott Galloway · 34:55
Literally nothing happened. Nothing. Everyone, and these are the nicest people in the world and they were angry. These are the nicest, most politically correct people in the world. And they were angry about the whole thing. So it was really, anyways, that's my loss.
Kara Swisher · 35:12
It's really amazing how no problem... The US isn't involved. I mean, just pulled out, that was the end of that. You know what I mean? If us and the Chinese are not involved speaking, which it's not gonna go anywhere. Not gonna happen. Nothing's gonna... Agree. We're gonna be like... Well, none of this that we discuss will matter. You realize that, of course.
Scott Galloway · 35:28
You think it's gonna happen that fast? You think what, 20, 30 Yeah,
Kara Swisher · 35:31
I do. I think it's like that movie, my favorite movie of all time, which is the movie with Jake Gyllenhaal and Dennis Quaid.
Scott Galloway · 35:37
Oh, the one where it just gets crazy cold.
Kara Swisher · 35:40
Yes, I love that movie. Crazy cold.
Scott Galloway · 35:43
Like the one with the train.
Kara Swisher · 35:44
I like exactly.
Scott Galloway · 35:45
Oh God, there's this amazing movie with Tilda Swinton about this, what was it called? The train that has to roam the earth. And we tried to fix global warming, and we fixed it too much, and the world gets too cold. That's a wonderful movie. I gotta find the name of that film.
— Predictions segment begins —
Kara Swisher · 35:58
I like all those apocalypse movies. I'm like, I'm in an apocalyptic tone right now. But but but I like them all. Anyway, alright. Predictions. Scott, do have any predictions from The Caribbean except that you're gonna be lounging around on yachts and eating foie gras? Why are you in Saint Bart's? Why are you there? I'm here. Stay in the same place.
Scott Galloway · 36:17
You know do you know why the dog goes to Saint Bart's?
Kara Swisher · 36:20
Why? Yes.
Scott Galloway · 36:21
Because he can, Kara. Because he can. Question is why is everybody here? It's wonderful here. I'm literally staring out my window looking at...
Kara Swisher · 36:29
There's snow day here. There's like snow days in parts. I think there's a snow day in
Scott Galloway · 36:32
one
Kara Swisher · 36:32
I'm having a friend's New here. But what... You're just there. You're just hanging out. You're gonna... There's no
Scott Galloway · 36:39
What? I'm not allowed to vacation.
Kara Swisher · 36:41
Don't you live in Florida? Isn't it cold? You're on vacation. I'm wandering around or something.
Scott Galloway · 36:49
I'm sick of being stereotyped as a professor. Everyone thinks I'm at home in my cardigan petting my Labrador watching PBS with a pipe in my mouth. Occasionally, the dog gets out.
Kara Swisher · 36:57
No one thinks that. No one thinks that's
Scott Galloway · 36:59
gone. Occasionally, they let him out of his crate. Occasionally he
Kara Swisher · 37:02
goes Everyone out of thinks you're in a bar pontificating to people in your NYU. But listen to me, what's your prediction
Scott Galloway · 37:09
So speaking just as I said last week, and I've got a lot of emails when I said that porn is the greatest experiment with unknown outcomes is being levied on our populace. I think we're gonna hear about Apple in China. Soon as the headline news and the noise around the tariffs, if at some point it goes away, The only big tech company that's been able to make any real or sustain inroads in China has been Apple because of its luxury status. But also, I what... I think Apple in China is gonna come up a lot. Because I wonder what has gone on in terms of their supply chain, in terms of privacy. And Tim toes a pretty, I don't wanna call it indignant, but a pretty righteous tone around his activities and his use it to his advantage. And I wonder what kind of deal with China he has struck. And I think we're gonna start hearing more uncomfortable things about what China has had to do to stay relevant and sell as many iPhones. I think there's no free lunch over there. Think a company that big is probably... We're gonna hear Apple and China in the news more in 2020. And it's not gonna be good for Apple.
Kara Swisher · 38:23
Okay, meaning that they are doing
Scott Galloway · 38:26
just don't think anyone is over there and doesn't have to kind of comply with what the Chinese government wants. When you have a phone and you have data, I find it hard to believe that Apple has been able to hold their phones and their data and their privacy to the same standards in China as they at least claim to in other parts of the world. Have no evidence of this. It's a thesis. But I think in 2020, we're gonna start hearing uncomfortable stories about what Apple has had to do to maintain, because they're over a barrel. China is now, I mean, it's just such an important market for them. And the Chinese government, they are very smart and they're gonna get their pound of flesh. Now, how that pound of flesh is manifesting itself, I don't know if it's... We're gonna find out.
Kara Swisher · 39:13
Well, was that story, the Bloomberg story, Apple pushed back on real hard, that sort of went sideways for Bloomberg, about chips being you know, problematic chips and then spying and this and that.
Scott Galloway · 39:27
And it wasn't true. Ended up being not true. Right?
Kara Swisher · 39:29
Yeah. Yeah. But this is just more like you do this if you wanna do business here or make things here, etcetera.
Scott Galloway · 39:36
Yeah. Well, so look, we'll see. I have no evidence Quid of
Kara Swisher · 39:38
pro quos, for example. We're talking... You're talking about quid pro quos. And and speaking of which, my prediction is this impeachment thing is just like another news story. Just like... It just keeps going. It doesn't like... It hasn't, like, changed anything in people's minds, it seems like, in the polls.
Scott Galloway · 39:54
You don't think there's any chance that 17 Republican senators flit?
Kara Swisher · 39:59
No. I do not think that. That is my prediction. 17... The only thing that's slightly interesting is that there was a push to have Justin Amash be the impeachment manager, which I would love to see.
Scott Galloway · 40:10
Yeah. That would be interesting.
Kara Swisher · 40:11
But no, I'm amazed by how little people are like, next, next, next on really appalling things. So that's what I think. I no prediction that this will just bleed into the new year pretty much, and you'll be down there in St. Parth's doing whatever you're doing. Anyway.
— Predictions segment ends —
Scott Galloway · 40:29
What's Caris Witcher got going on this week? Week was a very big week for you. I'm hoping this is a very boring Monday. It's
Kara Swisher · 40:35
calm week this week. I have a lot of meetings. I'm meeting with some publishers and I'm having some meetings. I have an idea for a new idea.
Scott Galloway · 40:44
Publishing a You're writing a book?
Kara Swisher · 40:46
Maybe, a lot of them call me and I'd say no to most of them because I don't have time.
Scott Galloway · 40:50
Oh my god. They say... They they all call me and I say no, says Carol Swisher. Oh my god. Literally, did you just It's say factual.
Kara Swisher · 40:59
I don't have time to do a book. I'm busy with you. I'm trying to put time into this relationship, and I cannot take time out to write a book. You'd never see me. But I'm gonna talk to them. Have an idea. I have an idea that is just germinating, and I think you will like it when I when I decide. It's not the algebra of happiness, I mean, you know, but it's, you know, or the calculus of happiness. Is that the next... Is that your sequel, The Calculus of Happiness?
Scott Galloway · 41:24
You have so not read my book. It's just, I mean, you literally My
Kara Swisher · 41:27
son has.
Scott Galloway · 41:27
Oh, that's
Kara Swisher · 41:28
great. My son has.
Scott Galloway · 41:28
Really? Both
Kara Swisher · 41:29
sons have read my book and your book, and they haven't read my books, and they love your book. They love your book. Both have it. They've read it.
Scott Galloway · 41:37
You for saying that. It makes me feel good.
Kara Swisher · 41:40
They have. I'm just telling you, they have. I don't have time to read books, Scott. I'm sorry. Does not happen.
Scott Galloway · 41:45
I'm a
Kara Swisher · 41:46
care switcher. I listen to books. That's what I do. I get it. In any case, I have lots of things, and then I'm going to San Francisco, then I'm going to San Francisco.
Scott Galloway · 41:54
What are you doing in San Francisco?
Kara Swisher · 41:56
Taking the kids there, take them there every year, and spending a couple weeks doing a lot of podcasts from there. All kinds of things. Gonna go bother Mark Benioff. Gonna go look at Salesforce, the top of Salesforce Tower for the wedding. No. I'm not. Can you imagine?
Scott Galloway · 42:09
I would love that. He would do that too. He would so do that.
Kara Swisher · 42:12
He would. Honestly, he would. I was joking with him about it, and he's like, sure. I can make it happen. I'm like, No, I'm totally kidding.
Scott Galloway · 42:19
Just wanna see him. I want him to give you away just so we can see the two of you standing next to each other again. You look like a different species when you guys He's stand in each tall,
Kara Swisher · 42:28
He's big a big tall man just like yourself, but he's sort of... He's bigger than you. He's kind of a hulky
Scott Galloway · 42:35
kind mean, a lot of dimensions. He's much bigger than me.
Kara Swisher · 42:37
No. He's not fat. He's like, he's just big. He's a
Scott Galloway · 42:39
big guy. He's like a flying I'm an important and wealthy
Kara Swisher · 42:43
and Oh, smart obviously everybody who's listening understands that part of the... I was trying to leave that unsaid. That was the silent he's a mogul kind of thing. Anyway, Scott, it's time for us to go. Enjoy your weekend.
Scott Galloway · 42:54
Thank you.
Kara Swisher · 42:55
We'll be back on Friday. We just never leave each other. I can't... I just can't quit you.
Scott Galloway · 43:00
It's too much.
Kara Swisher · 43:01
With more tech. There's a lot going on this week with the impeachment and stuff like that. We'll be talking about that, I think. But meanwhile, you can reach us by using hashtag pivot podcast.
Scott Galloway · 43:10
We're desperate for your affirmation. Let us know what you think about two times a week. Is it one plus one equals three, or is it one plus one? Get the fuck out of my ears already. What is it? Feedback. Email us at Pivot@VoxMedia.com.
Kara Swisher · 43:24
Today's show was produced by Rebecca Sinanis. Erica Anderson is Pivot's executive producer. Thanks also to Rebecca Castro and Drew Burrows. Make sure you subscribe to the show on Apple Podcasts, or if you're an Android user, check us out on Spotify or, frankly, wherever you listen to podcasts. If you liked our show, please recommend it to a friend. Thanks for listening to Pivot from Vox Media. We'll be back next week for another breakdown of all things tech and business.
