Kara Swisher · 40:29
Made where they got to keep their IP in some way. I forget. I I totally utterly forgotten. But there could be bigger shows here. Correct? Because some of them were pretty good. They were sort of interesting.
Scott Galloway · 40:38
See what gets traction. And not only that, the thing about Roku that Quibi really didn't have because not that many people download the app. Roku has direct interface with the consumer so they can get data sets on... It appears that people are watching, you know, Judge Chrissy or whatever it is with Chrissy Teigen or Teigen, and we could develop into a thirty minute show, and then they can test it. And, I mean, that's really the key here. The thing about the streamers that people forget, they say, it's because it's ad free. It's subscription revenue. Yeah. But they also
Kara Swisher · 41:05
watch anything. People watch just for But they
Scott Galloway · 41:07
have direct they have direct access to the data.
Kara Swisher · 41:09
Yep. I often go through Netflix and just watch the trailers for... And there are long trailers there, which is interesting. So what type of content should they acquire? You're talking about distressed acquisitions. At some point, don't wanna have all the bargain basement shit, you know, and let everything else go to HBO, but all the good stuff
Scott Galloway · 41:24
happening. Started.
Kara Swisher · 41:25
It's true. But how could they differentiate? Is it news? Because that's... They've all stayed out of news. Right? Pretty much. HBO sort of dabbled in it with Vice News tonight, and that didn't work out so well. How can they differentiate?
Scott Galloway · 41:36
That's a real that's a really interesting question. I think that they've said we're gonna do this kind of high end, fun, quirky short form content, I. E. Quibi. But what you brought up is really interesting, and that is the only final frontier that's gonna go behind a paywall or hasn't gone behind a paywall is kind of news news slash politics and business. Mhmm. There is no CNBC on Apple or or Amazon Prime Video. There is, there is no there is no news. There's no CNN behind all.
Kara Swisher · 42:07
They tried that cheese thing or whatever. Where did that go?
Scott Galloway · 42:09
Cheddar. Where'd
Kara Swisher · 42:10
that Cheddar. Where'd
Scott Galloway · 42:11
that go? Yeah. It got bought by a French cable company
Kara Swisher · 42:14
called Cheese.
Scott Galloway · 42:14
Yeah. And I don't, you know, I don't don't I don't Business Insider sort
Kara Swisher · 42:19
of went to the Germans and I don't It sort of it sits there and generates traffic, think is
Scott Galloway · 42:24
what it is. Actually, Business Insider is... It's been a win both for the acquirer and for Business Insider. Done really well. But, anyways, they... Those are the final frontiers. And somebody is gonna say, we're gonna produce a ten, twenty, thirty minute summary of the day's news or a ten, twenty, thirty minute summary of the markets in the morning and give it... Put it behind a wall. Give it to our subscribers.
Kara Swisher · 42:46
Who's watching the... Who is there... Who are their users? I don't even have any idea. Like, who... Is it Young? Is it
Scott Galloway · 42:51
I know that much about it.
Kara Swisher · 42:52
Yeah. We should We should
Scott Galloway · 42:53
have the CEO on. He's a very bright guy.
Kara Swisher · 42:55
We should have an animated show. An animated show. There is
Scott Galloway · 42:58
I think what you need is an authoritative voice to do the voice over
Kara Swisher · 43:00
on Stephen Colbert does an animated new show. A funny one. But, do you do you think they're still gonna get bought?
Scott Galloway · 43:07
Who?
Kara Swisher · 43:08
Roku.
Scott Galloway · 43:09
Like, who's Netflix? It's too late. Roku's now the acquirer, not the quarry. Roku's market cap is.
Kara Swisher · 43:14
Not Netflix saying that's enough of you people.
Scott Galloway · 43:16
No. Roku isn't... Roku is now gonna be, on top. They're gonna be acquiring companies. This is a company. This is a
Kara Swisher · 43:23
creative executive there. Don't even know.
Scott Galloway · 43:25
$44,000,000,000 market cap. I mean, that's what you realize. Roku's worth more than almost the entire cable bundle at this point.
Kara Swisher · 43:32
Yeah. All right.
Scott Galloway · 43:32
I mean, Roku, if you think about it, Roku is going to be worth almost as much as this new kind of discovery. I don't know what the equity value is gonna be there. Anyways, Roku is now a player.
Kara Swisher · 43:43
Alright. So quibi plus or minus. What do you think of where Katzenberg goes next?
Scott Galloway · 43:48
Oh, I think he continues to be Jeffrey Katzenberg, a Hollywood icon, and he enjoys his his... You know? He's an incredible storyteller. I think he's a billionaire in his own right. And I think he'll do a bunch of interesting projects and cool stuff. He's got be exhausted. Am You know what? You know what? And this is this is a blessing, and this... I always say this to entrepreneurs. Yeah. The best thing is success. No. The second best thing is to fail fast. Yeah. And that is when you're at his age, he didn't wanna find out that Quibi didn't work over ten years.
Kara Swisher · 44:20
Yep. True.
Scott Galloway · 44:21
You know, I started an ecommerce incubator in 1999 called Brand Farm back by Maveron, Goldman Sachs, bunch of JPMorgan. Oh, love about it was Yeah. The best thing about it was was it failed in about six months.
Kara Swisher · 44:33
Yeah. You should have called me right away. I would have told you don't
Scott Galloway · 44:35
do that. Oh, I should have called you a lot of times. Anyways Exactly. Anyways, whereas red envelope red envelope, it failed over ten years.
Kara Swisher · 44:42
Know. But you know what? That wasn't a bad idea. It was just early. That was early.
Scott Galloway · 44:45
Well, I appreciate that. Anyways, but my point is, success is the best thing, but a close second is to fail fast because then you just move on. Brand farm for me was a speed bump, whereas whereas Red Envelope was kind of like, you know, several 100 batteries of chemotherapy in my Vietnam over a decade. That's gonna offend a lot of people. But anyways Fair.
Kara Swisher · 45:05
That's a fair point. Yeah. We'll see. That'd be interesting to see where Katzenberg goes.
Scott Galloway · 45:08
A decade long failure really, really hurts.
Kara Swisher · 45:11
Agreed.
Scott Galloway · 45:12
Fast. Feeling fast.
Kara Swisher · 45:13
Marriage. It's a bad marriage. Get out. Get out if it's bad. That...
Scott Galloway · 45:18
A quibi for quibi for for Meg and for Jeff is an annulment. No one's gonna care. Find next. Yeah. Find next. True. Yeah.
Kara Swisher · 45:25
Probably. Yeah. Yeah. And... Especially in Hollywood. That might be interesting to see where Meg Whitman's gonna do. Alright, Scott. One more quick break. We'll be back for predictions.
[Ad break]
— Predictions segment begins —
Kara Swisher · 47:14
Okay, Scott. What is your prediction? It's been a very interesting show. I'm learning a lot. I'm learning about you and things. What's your prediction?
Scott Galloway · 47:20
So I I think that we're gonna see, I think that the subscription part of the world... Look. The whole world is digressing to two business constructs, and it's either iOS where you pay a premium, and you get more privacy, a more elegant solution, kind of the premium, or it's going to Android where you get essentially the product for free and they figure out a way to monetize you as a user. And by the way, the majority of the world picks Android. Two thirds of the world, 70 plus percent says, I love having a free phone. I love having free platforms. And if they mine my data and use it and there's some externalities, I'll complain about it, but every day I vote to I vote to go Android, if you will. I think we're gonna see increased market share across the iOS subscription part of the world. Even these things around Fauci's emails, I think individuals are really coming in touch or starting to understand just how negative some of the externalities and to the extent that they are as individuals being monetized. And this is a long winded way of me, talking up one of my recent investments that I was actually introduced to because of you. I've introduced... I've invested in Neva, which is subscription search. Yep. If you think about search, a $150,000,000,000 sector with one player that has a 93% market share. Mhmm. And that has never
Kara Swisher · 48:38
happened Google? Go ahead.
Scott Galloway · 48:40
Google. That has never happened in the history of business, and it is unsustainable. And the business model of ad supported media essentially says the key stakeholder is the advertiser. So we're not necessarily gonna always look out for the person making the queries. We're gonna take him or her not to the best place for their query, but a place we can further monetize them. And then the content creator gets less than maybe 1%
Kara Swisher · 49:04
Mhmm.
Scott Galloway · 49:04
Of the value generated by their content. Because our focus is on the advertiser and trying to figure out a way to enrage people and get them kind of get their attention more, and it leads to really negative externalities. Subscription, whether it's the move to Netflix, whether it's the move to LinkedIn, more and more people like the idea of saying, don't want my data molested. I want more privacy. I want a business model that focuses on the relationship with me. And and and the smartest people aren't pitching advertisers. They're pitching new product ideas that enhance my relationship and make it worthwhile for me to spend $12. Anyways, Neva's launched its beta $5 a month.
Kara Swisher · 49:42
I... We talked to Sri... With Shreedhar. I think we brought him here. Right? Didn't we have him on here?
Scott Galloway · 49:45
Yeah. We didn't have him here. I think you had him at Sway.
Kara Swisher · 49:47
No. I didn't have him on Sway. I didn't. I've had on. I've had him on. Believe we had him here. Anyway, in any case, I should have him Monsway. He's a really interesting guy. He's a he's a he's a very top executive at Google. He was right in the center of all that and sort of got tired of the way they were sucking inform... I mean, that's his story. Obviously, he was there while he was doing it. But really interesting guy. He brought an incredible team of people, technologists. It is an uphill battle for him, I'm sure. He's so used to being on the on the Death Star, essentially, and now he's in a tidy little ship. But the ideas are really interesting, and he's a he's a real brainy and interesting entrepreneur. And I I like him. I like talking to him a lot. I think he's really interesting, and he's got... You're right. I think someone's gonna have to do this. I mean, you have duck duck go. You've got that. It... You're right. It's unsustainable. But what's hard is the is the thing you're fighting is inertia. Google's... Like, ugh, Google, it works. Right? And people like it. Like, people... It has a... No matter how monopolistic they are and how much they're abusing your data, they're not Facebook. Right? And they're not... You don't feel that way about them. And they have... You know, there's a lot of positive positive brand attributes for Google going... Same thing with Apple. There's a lot of problems at Apple, but they have really positive brand attributes. So I think it's tough, but you're right. I think in in search in lots of areas, you know, the even even Twitter Blue, if they actually put together something that you would want, is something I would consider
Scott Galloway · 51:08
hitting So think subscription? Twitter and subscription? That's a novel idea. Think about it this way. Subscription is such a superior business, and the marketplace values it in a multiple of revenues versus multiple of EBITDA, that if other players in search capture 1% of the revenue of the search market, they'll capture 10% of the market cap, which by the way is $160,000,000,000 Yep. I So you're gonna see a variety of niche players, including Niva, that say we're gonna exit the ecosystem that paints us into a business model where we're no longer focused on the end consumer or the creator. Focused on the
— Predictions segment ends —
Kara Swisher · 51:39
end out of the picture. Yeah. I think that's a really good... That's a very good prediction. I have a short prediction. Yep. Did you see that kid, Paxton Smith, from the Texas, Texas High School. This... She's a valedictorian. And so I don't know if you know this. When you do valedictorian speeches, you have to submit them to the administration and
Scott Galloway · 51:54
they Are you approve saying you were valedictorian? Is No. That Go ahead.
Kara Swisher · 51:57
I was not. I don't think we even had that in my school. Anyway, a lot of high schools do. And and she was giving her speech, and she changed it mid... You know, she just changed it. She didn't deliver the speech she said she was gonna deliver. And she did a... An incredible speech about the abortion laws in Texas, the very onerous abortion laws they're passing to try to restrict abortions. You know, let's listen to it. Let's take a listen.
Guest · 52:21
And I'm talking about this today on a day as important as this, On a day honoring twelve years of hard academic work, on a day where we are all gathered together, on a day where you are most inclined to listen to a voice like mine, a woman's voice, tell you that this is a problem, and it's a problem that cannot wait. And I cannot give up this platform to promote complacency and peace when there is a war on my body and a war on my rights. War on the rights of your mothers, A war on the rights of your sisters. A war on the rights of your daughters. Cannot stay silent.
Kara Swisher · 53:07
You.
Scott Galloway · 53:09
Where did she give that speech?
Kara Swisher · 53:11
At the high school
Scott Galloway · 53:11
in Chicago.
Kara Swisher · 53:13
Texas Football Field is for valedictorian. Good for her.
Scott Galloway · 53:18
Right in middle of it. Dallas High School valedictorian back Smith. Strap speech makes him passionate.
Kara Swisher · 53:22
I gotta find... I've written her. I'm like, please come talk to she... This speech, she was like, basically, stay the fuck off my body, you know, and here's why. But she's so smart because she's the valedictorian. She did it. But I love that she, like, just did it. She just like she just like, yeah, I'm doing this speech about how we should move forward together and in hand in hand and this and that. And instead she was like, Patouche, love it.
Scott Galloway · 53:46
Love it. Love it. It.
Kara Swisher · 53:47
Will be a very important figure in
Scott Galloway · 53:50
the future. Junior senator from Texas in in twenty years. Did you know that seven in 10 high school valedictorians are girls? And I say girls because they're usually 17. Are they? Seven in 10.
Kara Swisher · 53:59
Well, and then what happens? Clara is gonna be a valedictorian, think.
Scott Galloway · 54:03
And then more go to college and more graduate from college. Yeah. Relatively speaking, and it creates a host of issues we talked about, young women are doing really well and young men are doing really poorly. In any case. It's a Let's watch this
Kara Swisher · 54:19
girl's future. For her.
Scott Galloway · 54:20
I can't.
Kara Swisher · 54:21
The fallout must be intense. But you know what? She was like, what a badass. I wish I was that much of a badass. I'll tell you that, and I don't say that often. Anyway, that is the show. We'll be back on Tuesday. Paxton, congratulations. Please send us your listener mail questions. We love them. Go to nymag.com/pivot to have a chance to be on the podcast. Scott, read us out.
Scott Galloway · 54:42
I'm glad you brought attention to that. I think that I think that's wonderful.
Kara Swisher · 54:45
She's badass.
Scott Galloway · 54:47
Today's show is produced by Rebecca Sinanis. Ernie Intertaud engineered this episode. Thanks also to Drew Burrows. If you like the show, please subscribe. If you're on Android, check us out on Spotify or, frankly, wherever you listen to podcasts. Please recommend it to a friend. Thanks for listening to Pivot and Box Media. We'll be back next week for another breakdown of all things tech and business. Let's go listen to Lake Highlands valedictorian, Paxton Smith. Well done. Well done. Leadership is the ability to take shit and sacrifice short term popularity, economic vitality to say and do the right thing. Here's a leader, Kara. Here's a leader.
