Kara Swisher · 34:34
Being bought by Cody for $600,000,000.
Scott Galloway · 34:37
Oh my gosh.
Kara Swisher · 34:37
They also own makeup brands, CoverGirl, Max Factor.
Scott Galloway · 34:40
Yeah.
Kara Swisher · 34:40
I think, you know, this was really interesting. The question is what's gonna happen to it, but Cody's shares rose 2.6% this week. These independent beauty brands, not just from Kylie Jenner, but from Rihanna with Fenty, which apparently is very good because people really... Makeup people always tell me it's really fantastic. I think it's really interesting, and I do think it it shows that, look, This is real money. This is real money. The the the Kardashians as much as people make fun of them. Kylie Jenner is obviously daughter Kris Jenner and part of the Kardashian empire. I think I think it's really interesting that these brands are just being created like this, and I thought that was fascinating. I'm curious what you think. You can bash the Kardashians all you want if you feel like, but I thought it was... It put some lipstick on this whatever. So
Scott Galloway · 35:26
No. I think... Like, I agree with you. I think the Kardashian women or daughters are impressive people, and I think it's easy to be cynical about them, but they've built great businesses. And, like, this was a... It's doing 200,000,000 in revenues. It was actually purchased at 51% of the company for 600,000,000, valuing the company at 1,200,000,000. And it's really... To a certain extent, it's a victory for social media because the primary asset here wasn't a proprietary skincare line or even a great brand, but her ability to sell $200,000,000 of cosmetics through primarily the Ulta channel using our 100 and I think 60,000,000 followers on Instagram or Twitter. So this notion, what are these independent... You have a few trends. One in the beauty space, which is a wonderful space that is high margin, great for ecommerce, and it's one of the few spaces that hasn't been disrupted by technology or Amazon because brand's important and there's a certain kind of... Similar to HBO, there's a culture of creativity at places like Estee Lauder and L'Oreal that continues
Kara Swisher · 36:24
Those are the big ones. Yeah. P and G, L'Oreal, Estee Lauder are the big ones.
Scott Galloway · 36:27
And then you have Clarence, and then P and G looks like the smart company because they sold all their cosmetics line to Coty, and quite frankly, it looks like Coty overpaid for it. Coty stock was down dramatically. It's come back. But Coty's largely kind of a fragrance and licensing company of celebrity driven fragrances. But anyways, this is... What this shows is is the power of these long tail brands has incredible power across beauty, hair, hair cosmetics, and skin. And when you have a $200,000,000 company largely built on the back of social media and then distribution through Ulta, valuation of 1,200,000,000. I mean, it's just it's kind of impressive all around and plays on a lot of trends. But I think the big winner here is it shows just how important Instagram is in terms of building a high margin aspirational product. If Conde Nast had been reinvented or reimagined for a digital age
Kara Swisher · 37:17
Yes.
Scott Galloway · 37:17
Remember how powerful the Conde Nast media company was with Vogue and, you know, that it would look something like Instagram. So Instagram, my thesis is that in twenty four months, and this is another indication, Instagram will be worth more than the core platform of Facebook.
Kara Swisher · 37:33
Agree. That's like a prediction. We'll get to that in a minute. But I agree. I agree. I think this is a big win, and I think people like to make... But I got a lot of pushback when I said this was fascinating because they love to just keep talking about Kim Kardashian sex tape years to come. But, look, these people have created a lot of stuff, whether you think the the the messages about girls are wrong or not. They've done a lot of things that are really interesting. Know? You And a lot of these celebrities are using these social media problems for really interesting stuff, and I think this is one of them, in terms of Kylie Jenner. And and, you know, someone like The Rock who I have just been tweeting with back and forth with them trying to get
Scott Galloway · 38:06
sense of that. The Rock's all over you.
Kara Swisher · 38:08
The Rock is all over. I love Rock.
Scott Galloway · 38:09
What did he call you? He's like, you're
Kara Swisher · 38:11
He calls himself a bundle from you. Did you see that?
Scott Galloway · 38:14
A Rock A Rock bundle. Yeah.
Kara Swisher · 38:15
I said I'd buy a Rock bundle last week.
Scott Galloway · 38:17
By the way, Dwayne Rock... Someone could... I love someone compared Dwayne The Rock Johnson to George Clooney. First off, The Rock graduated from college. Mhmm. The Rock has been in all these incredible movies. So basically, we're comparing him to George Clooney about how much more impressive he is than Clooney. The Rock is very impressive.
Kara Swisher · 38:31
I love The Rock. If I could get The Rock on podcast or at code, literally, it would be a dream. And someone was like, who's my... I... You know, by the way, years ago when I was talking to Facebook and who was a real up and comer on social media, they said two names, the Kardashians and The Rock. And that was... They they said he is just something else on social media. And so I think he's... I can't believe he responded to me. I literally screamed when I saw that. And I just watched Hobbs and Shaw, which I loved, of course. And and they, I was really thrilled. And he was great about it. He wants to have a drink. You you may come with me to that because I don't drink.
Scott Galloway · 39:03
So you'll Again, more hollow promises.
Kara Swisher · 39:05
If I get drinks with the rock, you are coming. And, literally, you cannot embarrass yourself with me and the rock. Do you understand? Because I am
Scott Galloway · 39:13
deeply takes me to the ugly place of my dad constantly holding out that rabbit coat he was gonna get my mom that never came.
Kara Swisher · 39:19
I'm just saying.
Scott Galloway · 39:19
It just... We never got the rabbit coat. We got came deeply. We got a two bedroom apartment in Encino and and mediocre child support. That's where you take me with these hollow promises.
Kara Swisher · 39:28
The rock. Listen, Dwayne. I love you. You need to come to code or whatever. I will do a podcast with you anywhere, any place, anytime. It will be so much fun. We will laugh and laugh and laugh, and then we'll have tequila afterwards.
Scott Galloway · 39:40
The rock to put us both on a workout program, and let's just see what happens?
Kara Swisher · 39:44
No. Let's not even try to bother. Okay. Your fail very quickly. We gotta go because you gotta get your prediction.
Scott Galloway · 39:48
I like that. I like that. Oh, my fail's easy. My fail is just the brand strategy blunder. Mhmm. And it will result in what is the erosion. I've had companies that have been acquired and what you realize is the culture is just so important. And one of the great cultures in all of corporate America and media is the culture at HBO. And you have just an incredibly poor judgment right now that is going to erode the culture that has produced some of the most, for me, of the most moving content in history. And it's not only the wrong thing to do just to just in terms of destroying art, It's the stupid thing to do. They they can't be Walmart. So my fail is just poor decision making at HBO going to HBO Max. No one wants Big Bang Theory to junk up The Wire, Six Feet Under, girls.
Kara Swisher · 40:42
Richard Kleplin is probably just joking.
Scott Galloway · 40:45
Well, did you hear supposedly Apple is eyeing him?
Kara Swisher · 40:47
Yes.
Scott Galloway · 40:48
They are. A 100%. The deep pockets of Apple, the original content They're not
Kara Swisher · 40:51
eyeing him. He's gonna do a deal with them. It makes sense.
Scott Galloway · 40:53
You think? I mean, that's gonna be a formidable... We're talking... We definitely wanna know that guy because that's our invite to the Emmys because that guy's gonna be I that guy. Well. Well, of course, you do.
Kara Swisher · 41:03
Well, Peppler was the PR guy for time... For for HBO for years before he became the head of it, and I... He was in my book. Was He in my... I know Plepp... I love that Pleppler guy. He's a fantastic, amazing
Scott Galloway · 41:14
Yeah. But him him on top of a limitless capital and the Apple brand, watch out.
Kara Swisher · 41:19
I love the Pleppler. Watch out. He's very funny. He's a funny guy. He's... You would... You know Pleppler, don't you?
Scott Galloway · 41:24
I got an email from him asking if we could have lunch. And similar to you I love promises, another rabbit coats.
Kara Swisher · 41:30
He likes to go... I forget which restaurant he goes. You gotta go to... I'm gonna hook you up with a Plepler. I will do that.
Scott Galloway · 41:35
Here we go again. More promises. Jesus. You can't help yourself.
Kara Swisher · 41:39
I'm just telling you, Plepler is great. You and Hefeppe would get along well. He loves to meet interesting people, and you're an interesting... He has dinner parties.
Scott Galloway · 41:45
Also me. And also me.
Kara Swisher · 41:46
Yeah. No. But he likes to have interesting people dinner parties in New York. You know, those things where you you sort of on display like a zebra. You'd be perfect. You'd be perfect for that.
Scott Galloway · 41:54
I guess.
Kara Swisher · 41:56
You're like a zebra.
Scott Galloway · 41:57
Thanks for that.
— Predictions segment begins —
Kara Swisher · 41:59
Okay. Alright. We're gonna get to predict. My fail, obviously, is Tim Cook and Trump this week. And I and I don't blame Trump because he lies like he breathes, but Tim Cook should know better. Thank you. Okay. Your prediction, and then we gotta go.
Scott Galloway · 42:11
My prediction. So a name you're gonna hear more about in 2020, and it's gonna about to become a player in the ecosystem between the intersection of tech and the streaming wars, which I'm just fascinated right now, is Roku. Oh. And Roku now I believe has a 38% share of devices for streaming Mhmm. Ahead of Amazon, whose Fire Stick I think has about a 30% share, and when you look at one of the keys, one of the missing links to Netflix and to Disney Plus is they don't control their distribution.
Kara Swisher · 42:48
Mhmm. Okay.
Scott Galloway · 42:49
So their ability to go toe to toe with Amazon and Apple streaming offerings that control their own distribution will be their ability to either acquire distribution or build it or the other way, and Roku offers that or the other way because Roku stock has skyrocketed, and now as sports I think about a 15 or $16,000,000,000 market cap, you could see a Roku, you could see a man dog bites dog, and you could see Roku go out and start to acquire content. Maybe even a CBS that I think sports about a $13,000,000,000 market cap right now. But a bigger name that we're not talking a lot about now in 2020, and a new player in the space, if you will, is Roku.
Kara Swisher · 43:31
Roku. Okay. That's interesting. You're pulling them out of nowhere. God. Not Netflix or anything like that?
Scott Galloway · 43:35
Well, they either get acquired. They could get acquired by Netflix Netflix. Or potentially Disney that need distribution, or they, if their stock keeps going up, will use their currency to go acquire a content company. But Roku is gonna be in the news either as a as a seminal acquirer or acquisition
Kara Swisher · 43:53
in I never thousand even thought about Roku, but you're right.
Scott Galloway · 43:57
Well, I heard Richard's listening, so I'm trying to impress him.
Kara Swisher · 43:59
I like that. I like that a lot. I like that concept a lot. It's interesting. Netflix, I still think... Despite the fact that Disney's done a great job with this thing and HBO Max is coming. Yeah. It's coming. I still think Netflix got a lot of kick left in it in terms of its programming. I watched, if you can believe it, let it snow, which is their is their Christmas movie. It's trying to sort of be book smart, but not as quite as smart. And I thought I can see why they're doing really well. It was really well done even though it was ridiculous and empty for a rom com, but it was it was it was sort of a mix between Booksmart and Love Actually. So I still think they... They're really canny as programmers. And so it'll be... It take a lot for others to keep up with how good they are.
Scott Galloway · 44:39
Well, you know who winners are just based on that as content creators Yeah. As evidenced by just an anecdotal or a small data point. Netflix is expanding their creative community and their producers and their content hub in Madrid, Spain from 13,000 people to 25,000 Amazing. So think about Netflix Yeah. Is gonna have 20,025 people in Madrid producing European content, and it gives you a sense of really, it's a wonderful time for kids coming out of college right now. If they can be any part of the ecosystem that manages to figure out a way to produce creative, differentiated content, that is a really good wrap right now. The cost of producing a show in the last twelve months according to Netflix has gone up 30 to 40%, which indicates that everyone from the gaffers to the caterers to the people moving your trailer around are making a lot more money. So this is a this is a growth part of the economy. Get to content. Get to content creation.
Kara Swisher · 45:31
And speaking of content, I'm gonna have a prediction. Star Wars, the Rise of Skywalker is gonna be a huge hit, and Cats is not, even though it's weird looking.
— Predictions segment ends —
Scott Galloway · 45:39
Well, you're really going out on a
Kara Swisher · 45:40
limb there. Listen to me.
Scott Galloway · 45:41
You and
Kara Swisher · 45:41
I are gonna go see both in a double
Scott Galloway · 45:44
There we go again. There we go again. Try on this rabbit coat. It's coming.
Kara Swisher · 45:48
Yes. It's coming. We're... You and I are gonna go see cats and sing along.
Scott Galloway · 45:51
You're literally taking me back to you're taking me back to Sears. My dad pulls out his diners, car... Club card. Alone,
Kara Swisher · 45:58
and that's I'm sorry. We're gonna go see cats together. We're gonna hold hands.
Scott Galloway · 46:01
It's gonna be great. Yeah. You know, that... That's what you call Jomo, joy of missing out. Joy of missing out. Taylor Swift. Wendy Leshkol gave me that.
Kara Swisher · 46:10
Oh my god.
Scott Galloway · 46:10
We didn't
Kara Swisher · 46:10
even talk about Taylor Swift kicking Scott or Chad or whatever the... And Scooter Braun in the in the the place where it hurts. Yeah. Taylor Swift.
Scott Galloway · 46:19
Nice. Taylor. She's a What do you got going on this week, Kara? What's the big cat up to
Kara Swisher · 46:23
of interviews. I've got a lot of interviews. I'm going up to Boston for Thanksgiving. What are you doing for Thanksgiving?
Scott Galloway · 46:29
My sister and her family, who I will not be posting on social media or Instagram, will be coming down. Okay. My dad's third wife, my wonderful stepmother, was the first person to ever spoil me. She's Linda. The first person she... Like, first person to spoil me, buy me things. She used to send me cookies, and you always love for the rest of your life the first person who spoiled you. I didn't have grandparents, but I had my dad's third wife
Kara Swisher · 46:53
Third wife.
Scott Galloway · 46:54
Okay. Thought she couldn't have children. He's on number four, but we think this one's gonna stick, Carol.
Kara Swisher · 46:58
That is a heartwarming family Thanksgiving sisters. Isn't that nice? Wife.
Scott Galloway · 47:04
Okay. She's coming. She's she's wonderful.
Kara Swisher · 47:06
What are you thankful for?
Scott Galloway · 47:07
We gotta go. What
Kara Swisher · 47:08
are you thankful for?
Scott Galloway · 47:10
I'm thankful we live in a I'm thankful we live in a country that attracts some of the best and brightest that can you continue to wanna serve for us silently and quietly and competently. I'm I'm I'm thankful for ambassadors, the secret service, the the DMV and the University of California. I'm thankful for all the wonderful people who've made this incredible experiment as as as robust as it is.
Kara Swisher · 47:32
Oh, Scott. That's so good. And your and your father's third wife.
Scott Galloway · 47:36
Am I Listen. My dad's third wife.
Kara Swisher · 47:38
Listen to me. I'm thankful for you, Scott Galloway.
Scott Galloway · 47:40
What are you thankful for?
Kara Swisher · 47:41
I'm thankful for you because you make me look good.
Scott Galloway · 47:43
Go Go on. You make
Kara Swisher · 47:45
me look good. Someone Yeah. Someone the other day goes, you know, Scott's really offensive. And I'm like, uh-huh.
Scott Galloway · 47:51
Well, no shit.
Kara Swisher · 47:52
And he go... And they go, well, do you think that's okay? I'm like, I love it. It's fantastic. It's my favorite part because I can kick him in the teeth.
Scott Galloway · 47:59
There you go.
Kara Swisher · 47:59
And then he says something really smart. That's how it works. And then he says something else. But I am thankful for you, and I'd be more thankful if the next time we meet you were dressed in drag. That's what I would be thankful
Scott Galloway · 48:07
I'm in.
Kara Swisher · 48:08
Alright. We're gonna go cats, and you're gonna dress like a
Scott Galloway · 48:11
cat. Rebecca Newman. Alright. I'm dressing as Rebecca.
Kara Swisher · 48:13
Alright. Anyway, Scott, we gotta go now. We'll be back next week.
Scott Galloway · 48:17
We do have to go.
Kara Swisher · 48:18
More things. Before we go, I want a big thank you, actually, to all the amazing listener questions and feedback in Twitter in our inbox. Thank you all, and thank you for the people who listen to Pivot. We love our fans. We have great fans.
Scott Galloway · 48:29
We do.
Kara Swisher · 48:29
We've gotten great notes from Mexico, from everywhere around the world who want us to come there, and we are gonna go everywhere as long as you buy our drinks. That's how it works for us.
Scott Galloway · 48:38
Hottest city in the world. Mexico City. Hottest city in the world right now.
Kara Swisher · 48:40
We're gonna figure it out.
Scott Galloway · 48:41
We're going off of Formula One.
Kara Swisher · 48:42
Erica is on it. She's gonna figure it out. They're all gonna... And Rebecca, they're gonna figure it out for us. Anyway, please keep your questions, requests, suggestions coming into our inbox. Keep telling Scott he's the best on Twitter. We can be reached at pivot@voxmedia.com. Also tweet at us using hashtag pivot podcast. Today's show was produced by Rebecca Sinanis. Gautam Shrikashin engineered this episode. Eric Anderson is Pivot's executive Thanks also to Rebecca Castro and Drew Burrows. Make sure you subscribe to the show on Apple Podcasts. And 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.
