Kara Swisher · 34:43
Hey. America again. I... Scott, that's... Oh, I can't stand it how smart.
Scott Galloway · 34:48
Do this for a living.
Kara Swisher · 34:49
Oh my god. You're really smart. You know?
Scott Galloway · 34:51
I keep this up. I'm gonna have a show on Vice.
Kara Swisher · 34:53
Every time I'm
Scott Galloway · 34:53
Vice one can find.
Kara Swisher · 34:54
Who is
Scott Galloway · 34:55
That no one can find.
Kara Swisher · 34:56
Every time I go, who
Scott Galloway · 34:57
this company? Vice. What's the point of being on Vice if you can't drop that bomb? What? You're not allowed to curse.
Kara Swisher · 35:02
What? We cannot make a deal in which we cannot be bleeped. Okay? Let me... Let's just put that in our contract along with some other stuff we're gonna ask for. Let's ask for stuff. Okay.
Scott Galloway · 35:13
So America again. Again. You heard it here.
Kara Swisher · 35:16
A a. Heard it here.
Scott Galloway · 35:17
Well What do you think? What do
Kara Swisher · 35:18
you think we do?
Scott Galloway · 35:19
Answer the Kiwis. Is Kiwi a
Kara Swisher · 35:21
racist comment? No. I don't know. I I used to call that Chris Ladell, who now works at the White House, used to be CFO, and I I... He was fine when I used that.
Scott Galloway · 35:28
What do you think? How do you think we restore the brand America?
Kara Swisher · 35:30
That's a delicious fruit, by the way. I I I think we we pretend it didn't happen as we are so good at doing. We pretend it didn't happen.
Scott Galloway · 35:42
The pandemic or Trump?
Kara Swisher · 35:43
Trump. The whole thing.
Scott Galloway · 35:44
Just... Yeah. Forty forty or 50 states.
Kara Swisher · 35:47
Right.
Scott Galloway · 35:47
We screwed up. We're correcting our mistake.
Kara Swisher · 35:49
Right. Not we're back. Not America. Again, I like that. I like that. I'm trying to think. But I think we we just act like it was a terrible nightmare. The nightmare is
Scott Galloway · 35:58
over Mhmm.
Kara Swisher · 35:59
Kinda thing. And... But say the word nightmare. You know, something like time to dream. You know, wake up wake up from your nightmare. It's time to dream. Something like that. How do you like that? No? Yes?
Scott Galloway · 36:11
Yeah. Sure.
Kara Swisher · 36:13
Not bad. That feels
Scott Galloway · 36:14
like I don't know. How about how about all of us need to be one cell on the hand that bitch slaps that bigoted fucking weirdo? How about that? How about... Will that go on a bumper sticker?
Kara Swisher · 36:23
No.
Scott Galloway · 36:23
Will that go on a bumper sticker?
Kara Swisher · 36:24
No. No. I like America again. I like it. Let's go for it. Hey. It's Derek from New Zealand. Insight... Sell this all you want, but we come up with good advertising here, I gotta tell you. But hello to Jacinda Ardern. I'd love her to have her on the podcast. Thank you very much. Will you ask her? Thank you. Alright. So, Scott, we're gonna take one more quick break after that brilliance from you, and we'll be back for predictions.
[Ad break]
— Predictions segment begins —
Kara Swisher · 38:21
Scott, earlier this week, we talked about whether the government should temporarily ban mergers for big companies during the pandemic. It's been discussed in congress. AOC and and Elizabeth Warren teamed up on a new bill proposing that since what we last spoke. What else should listeners be ahead of the curve on... Predict something, please. I'm gonna do a quick prediction before you start, by the way.
Scott Galloway · 38:42
Go
Kara Swisher · 38:42
ahead. So AMC is shooting with Universal Studios, the the theater chain, and said it would ban their theater release after Universal's CEO said the company plans to release more of its movies straight to streaming. I think Trolls was done. There's all this anger among theaters. I feel like theater owners are just gonna go there, and eventually will own all these we'll own all these chains. You know, Disney will own a chain. And I think they're just saying full
Scott Galloway · 39:07
You mean the studio
Kara Swisher · 39:08
Studios. Will own their distribution. Distribution. Right? Right.
Scott Galloway · 39:10
But I
Kara Swisher · 39:11
think it's gonna be full steam ahead on these releases, and and as people get used And to too bad AMC, you're gonna get bought, and it's gonna be just one more means of distribution. And I think the government's gonna let it happen because there's so many ways to watch movies now. Thank you.
Scott Galloway · 39:25
Well, there's there's a there's a lot there, and that is if you look at companies that have added more than a $100,000,000,000 in, say, a two or three year period, they all have one thing in common, and that is they've made extraordinary investments in being vertical, whether it's Apple opening stores. If you think about Facebook and Google, they they manufacture, design, and distribute their products. And you... It's only a matter of time before Disney and the major content players that have the capital go vertical, and that is... You're right. They not only acquire AMC or iPic, they acquire Xbox handsets so they can... Or they require Roku. So going vertical is is key. The other The other thing that's playing out here is that as when I was growing up, my dad's boss had a slightly bigger house, but was in the same neighborhood and all of the kids went to the same place because he made twice what my dad made. Now the the CEO of a company no longer makes 20 to 30 times the average salary of an employee. They make three to 400 times. So there has been a marketplace shift and adaption or adaptation to the extreme amount of wealth and the variance in the amount of money people have through extreme segmentation. And I'll use two examples. I'll come back to what I think is gonna happen in movie theaters. You used to go to Disneyland, and it was 1995 to get in, and then you bought these stupid books of tickets. An a ticket was for lame Dumbo ride, and an e ticket was for Pirates of the Caribbean. And then tickets. Oh my god. Had to strategize and spend a ton of time thinking about, okay. Does mom get to go on pirates of the Caribbean, or does she have to go on Bear Country Jamboree, which is only a d ticket? And then slowly but surely, as wealth... As as people... Successful people were no longer making making millions, they were making tens of millions or hundreds of millions, They adapted, and they said, okay. Now we have FastPass. And for an extra 20 or $30, you get to cut the line. And then we had VIP tours, where for $5,000, you and eight people not only cut the line, you go in the employee entrance, and if you just give the operator in hand signal, you get to ride it over and over and over So they have segmented the shit out of this product such that they can attract and tap into extremely wealthy people. The same thing is going to happen in movies, and that is within twelve to twenty four months, you and me or anybody else are going to be able to watch the next installment of Star Wars for $250 at home seven days before it comes out in the theaters. Because there is a large population of wealthy people who will pay hundreds of dollars to watch the new minions at home in the comfort of their own home. And the really sad thing about it is... This is that one of the things that was a blessing, I mean, a real blessing for me going to university high school in Santa Monica or West LA is there were kids a lot wealthier than me, and I developed aspiration. It's like, okay. That kid's going to Stanford. He's smarter and harder working than me, but he's not much smarter and harder working than me. Maybe I could go to a good college. And then there were kids a lot less fortunate than me, and I remember developing a sense of kind of empathy for them. And when we take the segmentation of our society and put everyone in their own weight class, it reduces a level of aspiration and confidence to the upside and reduces a level of empathy to the downside. And what are we doing now? We're gonna take everyone out of movie theater. People... Income and demographic segments used to mix at movie theaters, and now they're not going to. There are people that are gonna watch it at home.
Kara Swisher · 42:49
No. I think there's gonna be movie theaters, and I would love Disney to run a movie theater because it would be a nice experience like Alamo Drafthouse.
Scott Galloway · 42:54
Not go back to a regular movie theater. Go... That's it. That's segmentation.
Kara Swisher · 42:58
You're wrong.
Scott Galloway · 42:58
You'll go to Drafthouse or iPic. You won't go to a regular movie theater.
Kara Swisher · 43:01
No. But I will go to movie theaters if they were even slightly nicer. There has been no innovation in movie theater. They're still ganky since I was a kid.
Scott Galloway · 43:08
Well, that's it. I pick.
Kara Swisher · 43:09
Yep. I pick. I like... I go to Alamo Draxcast. I actively go there. I actively
Scott Galloway · 43:14
They're segmenting. Yep. They're going, okay. You're not rich, you go to a place with sticky floors.
Kara Swisher · 43:18
Yeah. But it's not that much pay... A a price difference, I'll tell you that. The difference in ticket price at Alamo Drafting is just you can eat there. Oh. The price difference
Scott Galloway · 43:26
is not there. Oh my gosh. You're such a New York Times podcast elitist. People can't... 95% of America cannot cannot go to... Afford to go to iPic.
Kara Swisher · 43:34
That's... It's $25
Scott Galloway · 43:35
a seat.
Kara Swisher · 43:36
I I... It is not an Alamo Drafthouse, but it's the food that they make the money on, I suspect. It's less... I'm just saying ticket prices Oh,
Scott Galloway · 43:44
think the dog loves taking his kids to a kids show and
Kara Swisher · 43:46
getting drunk. Take the prices down. They... And make a great Disney... Let me just say, as I know you haven't been on a Disney cruise, and I, Carissa, wish her have. Let me just say.
Scott Galloway · 43:55
What did you think of it? I'm kinda It
Kara Swisher · 43:58
was... I I was trying to get Bob Iger to come to something, and he said I had to go on a cruise in order to do it. I I paid for it myself. I went. I asked this... I thought it was flawless. I hated every minute of it, but it was flawless.
Scott Galloway · 44:10
Experience kids of it?
Kara Swisher · 44:11
Yes. And by the way, they had tiered people, had better rooms, had less better rooms.
Scott Galloway · 44:15
And it's a Titanic.
Kara Swisher · 44:16
Right. Exactly. But the rooms at the less better people were great. The food was fine. It wasn't great, but it was good. I have to say, one thing they did, everybody got soft serve all the time. Even though I just was dying inside, I could not deny the quality of it. Went to their
Scott Galloway · 44:33
crazy I want to be Disney.
Kara Swisher · 44:35
It was
Scott Galloway · 44:35
I'm past that, though. I'm more about... I wanna go on a virgin cruise because I think I'll maybe get... Have my first threesome with a bunch of hairdressers. That's how I imagine a virgin cruise. Isn't that you imagine
Kara Swisher · 44:43
a virgin cruise? No.
Scott Galloway · 44:45
Hairdressers and the dog mixing it up a little bit?
Kara Swisher · 44:47
Why would you... Why would hairdressers talk to you?
Scott Galloway · 44:50
I don't know.
Kara Swisher · 44:51
Alright. So is that your prediction? What is your prediction? I I consider
Scott Galloway · 44:54
Oh, okay. So I got a
Kara Swisher · 44:55
bunch. Alright.
Scott Galloway · 44:55
You're right. Amazon Quick. And this is dangerous. Amazon becomes the second most valuable company in the world this afternoon. Zoom Zoom, we predicted last week, was gonna go down to a 100. It's already dropped from $1.70 to I think 100
Kara Swisher · 45:06
Google stuff. Yeah.
Scott Galloway · 45:08
And you're gonna see you're gonna see an absolute... We're gonna see big tech go from 24% of the S and P by the end of the year to 28 to 30 as the market wakes up from its consensual hallucination and absolutely throws up and tests new lows in the next ninety days. But anyways, my real prediction is today post earnings, Amazon becomes the second most valuable company
Kara Swisher · 45:28
in That's the a good one. That's important. And then we will see what they will do with that power, and Jeff Bezos has made a lot of money in the past couple of months, I'll tell you that. What is he gonna do with it? He's going to Mars apparently.
Scott Galloway · 45:41
Yeah. No. He's he's doing what he should be doing.
Kara Swisher · 45:43
He's not going to a movie theater. I'll tell
Scott Galloway · 45:45
you You don't think?
Kara Swisher · 45:46
No. No.
Scott Galloway · 45:47
He could buy he could he could... I was thinking about he could buy Paramount Pictures, he could... Or Paramount... Who owns Paramount? Viacom? Is that Viacom? I think it's Viacom. He could buy Ferrari. Ferrari's $24,000,000,000. That would be a baller move to buy Ferrari in the midst of a midlife crisis.
Kara Swisher · 46:00
Why? That's insane.
Scott Galloway · 46:01
Because he can't
Kara Swisher · 46:02
That's even a Because he lift for him. That's a lift for him, 24,000,000,000.
Scott Galloway · 46:06
Be awesome.
Kara Swisher · 46:07
To own a car company? Would you do that if you were him?
Scott Galloway · 46:11
Of course he would. That if I were him.
Kara Swisher · 46:12
Of course
Scott Galloway · 46:12
he would. I don't know.
Kara Swisher · 46:13
I can't even ask you another question before we go. What would you buy if you had left Jeff Bezos level? One thing, what would you buy?
Scott Galloway · 46:21
Fox News and shut that shit down.
Kara Swisher · 46:23
Oh, I like it. Together, we would do that. That's exactly what I would do.
Scott Galloway · 46:26
Actually, you couldn't do it because something else would just reemerge. Oh, yeah. Everyone said Bloomberg should buy it. But, oh, another prediction here. I'm sorry. Sonos is gonna be acquired.
Kara Swisher · 46:34
Oh,
Scott Galloway · 46:35
okay. The home is gonna increase in importance for all of us with distancing and with work from home, and we're gonna invest more in our homes, and the number, the most undervalued brand in the home technology with leisure and entertainment is Sonos. I love that.
Kara Swisher · 46:50
I have I have them.
Scott Galloway · 46:51
It's got great NPS scores. It's got a great CEO there. They're... And right now,
Kara Swisher · 46:57
a billion bucks. We we we had Sonos at at one of our All Things D conferences early on to debut them, and it... That's been interesting. They were also... Can I tell a very quick story here? Yeah. They came to our All Things D conference, and we used to have a room we called the science fair where sponsors used to show off their stuff, and they were showing off their first... Their first thing had a little box with a wheel on it, if you remember Mhmm. The thing that controlled the Sonos device. Oh, yeah. Yeah. I remember. And we had Steve Jobs that year, and so we were walking. He wanted to see the science fair, so Walt Mossberg and I were walking him around, and John Earnhardt, I think that was the c... The founder, CEO, was there, and he was he was a Steve Jobs fan like you could not believe. Just one of those just like, love Steve Jobs. He is my god. And Steve Jobs zeroed in on the Sonos display, and he walked over to the guy. And the guy's like, oh my god. I get to meet Steve Jobs. Steve Jobs pointed a finger at him and goes, I'm gonna sue you. You have copied the the iPod with wheel. That is our wheel. He started... Like, I'm gonna sue you, you jack it. He was, like, amazing, and and he was a sponsor of ours. And and he walked away, and and I was like, thank you for sponsoring All Things Digital. And he was thrilled to be screamed at by Steve Jobs, but it was a really interesting moment.
Scott Galloway · 48:11
Yeah. Patrick Spence is the CEO there now. He's very good. It's a company that it's... I mean, if you think about it, what other company has that kind of technology Great. Great. In the home with a billion dollar market cap? I mean,
Kara Swisher · 48:22
you're right.
Scott Galloway · 48:23
Somebody's gonna acquire it. It might be a it might be a strange one. It might be like a Samsung or something like that.
Kara Swisher · 48:28
Okay. I like that, Scott. That this
Scott Galloway · 48:30
is They're taken out.
— Predictions segment ends —
Kara Swisher · 48:31
So full of information, this particular pivot, which just goes to show we are here for the long run. We are gonna keep making these fantastic insights.
Scott Galloway · 48:39
Keep pivoting.
Kara Swisher · 48:39
Gotten a lot of really nice tweets about people who were lifting their spirits in this time of woe, and I
Scott Galloway · 48:43
Oh, yeah. What a thrill. You're welcome.
Kara Swisher · 48:45
You know what? You're welcome. You know what? We are. So just accept accept the love that is given to you by our fans. Anyway, Scott, it's time to get out of here. Don't forget, if there's a story in the news and you're curious about it and wanna hear our opinion on, email us at pivot@voxmedia.com to be featured on the show, and vote for Pivot for the Webby Awards best business podcast. We wanna beat Reid Hoffman. And if masters of scale wins, I'm not gonna be happy about the situation. Anyway, Scott, read us out.
Scott Galloway · 49:13
Today's episode was produced by Rebecca Sinanis. Our executive producer is Erica Anderson. Special thanks to Drew Burrows and Rebecca Castro. If you like what you heard, please hit the subscribe button or download wherever you find your podcast. Join us at the beginning of next week. It feels almost borderline optimistic, Kara. Uh-huh. We hope some of that optimism is creeping back into everyone's lives. Stay safe, and we'll speak speak to you next week.
