welcome to hit mojo show 15 i’m your host Afghan Constitution and I’m CT more
host Afghan Constitution and I’m CT more
host Afghan Constitution and I’m CT more and today we’re going to talk about
and today we’re going to talk about
and today we’re going to talk about content creators are they actually
content creators are they actually
content creators are they actually potentially disruptors or as content
potentially disruptors or as content
potentially disruptors or as content only intended to be disrupted as well
only intended to be disrupted as well
only intended to be disrupted as well we’re going to talk about the potential
we’re going to talk about the potential
we’re going to talk about the potential shake out in the online advertising
shake out in the online advertising
shake out in the online advertising market basically is the online ad market
market basically is the online ad market
market basically is the online ad market about to go boom or bust and then as
about to go boom or bust and then as
about to go boom or bust and then as always we got lots of things to cover in
always we got lots of things to cover in
always we got lots of things to cover in lightning round all right and before we
lightning round all right and before we
lightning round all right and before we get started speaking of content creators
get started speaking of content creators
get started speaking of content creators watchmojo has been nominated alongside
watchmojo has been nominated alongside
watchmojo has been nominated alongside CBS and HBO but no nominated by digit a
CBS and HBO but no nominated by digit a
CBS and HBO but no nominated by digit a why don’t you tell us something about
why don’t you tell us something about
why don’t you tell us something about that yeah I mean to be honest with you
that yeah I mean to be honest with you
that yeah I mean to be honest with you were a bit shocked we submitted
were a bit shocked we submitted
were a bit shocked we submitted watchmojo com for the best entertainment
watchmojo com for the best entertainment
watchmojo com for the best entertainment category and you know we thought we
category and you know we thought we
category and you know we thought we might get some consideration and then
might get some consideration and then
might get some consideration and then when I heard we were nominated I was on
when I heard we were nominated I was on
when I heard we were nominated I was on my I was in a cab going to LAX and you
my I was in a cab going to LAX and you
my I was in a cab going to LAX and you know I thought we would get nominated
know I thought we would get nominated
know I thought we would get nominated with other traditional sari with other
with other traditional sari with other
with other traditional sari with other new media producers but the fact that
new media producers but the fact that
new media producers but the fact that we’re nominated obviously along with HBO
we’re nominated obviously along with HBO
we’re nominated obviously along with HBO and CBS is really cool I sort of
and CBS is really cool I sort of
and CBS is really cool I sort of understand when people say now when they
understand when people say now when they
understand when people say now when they go it’s just nice to be nominated but we
go it’s just nice to be nominated but we
go it’s just nice to be nominated but we obviously want to win so we’re signing
obviously want to win so we’re signing
obviously want to win so we’re signing some checks bribing them making sure it
some checks bribing them making sure it
some checks bribing them making sure it happens I’m just kidding no bribe you
happens I’m just kidding no bribe you
happens I’m just kidding no bribe you know what you’re nominated alongside two
know what you’re nominated alongside two
know what you’re nominated alongside two huge names I think that’s pretty
huge names I think that’s pretty
huge names I think that’s pretty impressive congratulations it’s a
impressive congratulations it’s a
impressive congratulations it’s a testament to the team I think it’s very
testament to the team I think it’s very
testament to the team I think it’s very easy to say you know let’s do this let’s
easy to say you know let’s do this let’s
easy to say you know let’s do this let’s do that the fact that the team can go
do that the fact that the team can go
do that the fact that the team can go out there and make it happen they
out there and make it happen they
out there and make it happen they deserve all the credit let’s get crackin
deserve all the credit let’s get crackin
deserve all the credit let’s get crackin okay so um what do you think ash can
okay so um what do you think ash can
okay so um what do you think ash can content producers be disruptors or is it
content producers be disruptors or is it
content producers be disruptors or is it always going to be tech companies that
always going to be tech companies that
always going to be tech companies that disrupt well I think if you’re going to
disrupt well I think if you’re going to
disrupt well I think if you’re going to talk about content you first have to
talk about content you first have to
talk about content you first have to break it up into a few different sort of
break it up into a few different sort of
break it up into a few different sort of branches I think amongst content
branches I think amongst content
branches I think amongst content creators I think traditional media
creators I think traditional media
creators I think traditional media companies who produce content have
companies who produce content have
companies who produce content have really high cost structures so they like
really high cost structures so they like
really high cost structures so they like the print industry and the and the music
the print industry and the and the music
the print industry and the and the music industry are going to get disrupted
industry are going to get disrupted
industry are going to get disrupted their cost structures are out of whack
their cost structures are out of whack
their cost structures are out of whack so that’s going to make their businesses
so that’s going to make their businesses
so that’s going to make their businesses shrink they might remain huge businesses
shrink they might remain huge businesses
shrink they might remain huge businesses but I do think that they’re going to
but I do think that they’re going to
but I do think that they’re going to face a lot of pressure the notion of you
face a lot of pressure the notion of you
face a lot of pressure the notion of you know spending millions of dollars to
know spending millions of dollars to
know spending millions of dollars to produce a sitcom I think that’s going to
produce a sitcom I think that’s going to
produce a sitcom I think that’s going to become harder and harder to justify now
become harder and harder to justify now
become harder and harder to justify now that being said amongst the sort of big
that being said amongst the sort of big
that being said amongst the sort of big companies I don’t necessarily think that
companies I don’t necessarily think that
companies I don’t necessarily think that the gatekeepers like the comcast
the gatekeepers like the comcast
the gatekeepers like the comcast Verizon’s you know basically those who a
Verizon’s you know basically those who a
Verizon’s you know basically those who a great the audiences and distribute the
great the audiences and distribute the
great the audiences and distribute the content I think they’re going to be just
content I think they’re going to be just
content I think they’re going to be just fine now they are not going to be seeing
fine now they are not going to be seeing
fine now they are not going to be seeing eye to eye with the you know Viacom’s
eye to eye with the you know Viacom’s
eye to eye with the you know Viacom’s and the news corp’s and the NBC com cats
and the news corp’s and the NBC com cats
and the news corp’s and the NBC com cats like the content owners because Verizon
like the content owners because Verizon
like the content owners because Verizon and Comcast want to give more to end
and Comcast want to give more to end
and Comcast want to give more to end users they want to take all that content
users they want to take all that content
users they want to take all that content the the D what used to be in theatrical
the the D what used to be in theatrical
the the D what used to be in theatrical what used to be at home release what
what used to be at home release what
what used to be at home release what used to be on TV you know they’re going
used to be on TV you know they’re going
used to be on TV you know they’re going to want to put all that to their users
to want to put all that to their users
to want to put all that to their users on every street where business models
on every street where business models
on every street where business models access they do TV they do the internet
access they do TV they do the internet
access they do TV they do the internet and blob yeah but but just to finish but
and blob yeah but but just to finish but
and blob yeah but but just to finish but i think the ones who offers before going
i think the ones who offers before going
i think the ones who offers before going on to who amongst content creators can
on to who amongst content creators can
on to who amongst content creators can disrupt what do you think about do you
disrupt what do you think about do you
disrupt what do you think about do you think that you know it is TV going to
think that you know it is TV going to
think that you know it is TV going to suffer first of all the same fate as
suffer first of all the same fate as
suffer first of all the same fate as radio sorry well yeah radio but mainly
radio sorry well yeah radio but mainly
radio sorry well yeah radio but mainly print and the the music industry um well
print and the the music industry um well
print and the the music industry um well TV in the sense of me sitting in front
TV in the sense of me sitting in front
TV in the sense of me sitting in front of something that’s coming in through a
of something that’s coming in through a
of something that’s coming in through a piece of fiber-optic maybe I think that
piece of fiber-optic maybe I think that
piece of fiber-optic maybe I think that kind of TV style of content will always
kind of TV style of content will always
kind of TV style of content will always be there and even to that extent he’ll
be there and even to that extent he’ll
be there and even to that extent he’ll probably it could still be delivered via
probably it could still be delivered via
probably it could still be delivered via fiber-optic but it’ll be more through my
fiber-optic but it’ll be more through my
fiber-optic but it’ll be more through my I guess my internet connection than you
I guess my internet connection than you
I guess my internet connection than you know conventional cable connection as
know conventional cable connection as
know conventional cable connection as much as their cost structures are out of
much as their cost structures are out of
much as their cost structures are out of whack I think what’s interesting is when
whack I think what’s interesting is when
whack I think what’s interesting is when it comes to producing kick-ass content
it comes to producing kick-ass content
it comes to producing kick-ass content you’re getting into something that’s
you’re getting into something that’s
you’re getting into something that’s kick-ass creative and at the end of the
kick-ass creative and at the end of the
kick-ass creative and at the end of the day that is something that’s really
day that is something that’s really
day that is something that’s really expensive to produce it’s a lot harder
expensive to produce it’s a lot harder
expensive to produce it’s a lot harder and I haven’t even heard of a web series
and I haven’t even heard of a web series
and I haven’t even heard of a web series eating into the audience of a
eating into the audience of a
eating into the audience of a traditional media series ever one
traditional media series ever one
traditional media series ever one because the web you can watch it
because the web you can watch it
because the web you can watch it whenever you want you’re not competing
whenever you want you’re not competing
whenever you want you’re not competing for time slots and to content startups
for time slots and to content startups
for time slots and to content startups like they just don’t have the capital
like they just don’t have the capital
like they just don’t have the capital like if you think what goes in to think
like if you think what goes in to think
like if you think what goes in to think about what went into making the pilot of
about what went into making the pilot of
about what went into making the pilot of Boardwalk Empire like right there that
Boardwalk Empire like right there that
Boardwalk Empire like right there that would probably be enough to float a web
would probably be enough to float a web
would probably be enough to float a web series for five seasons yeah I think
series for five seasons yeah I think
series for five seasons yeah I think that’s half of it the other half is like
that’s half of it the other half is like
that’s half of it the other half is like when Herman Cain wants to go and set the
when Herman Cain wants to go and set the
when Herman Cain wants to go and set the record straight or when you know the
record straight or when you know the
record straight or when you know the Sandusky perv their alleged perv wants
Sandusky perv their alleged perv wants
Sandusky perv their alleged perv wants to go and talk to Bob Costas it’s always
to go and talk to Bob Costas it’s always
to go and talk to Bob Costas it’s always still on television that’s the big
still on television that’s the big
still on television that’s the big audience hang out that’s what you know
audience hang out that’s what you know
audience hang out that’s what you know moves news stories and all that I think
moves news stories and all that I think
moves news stories and all that I think it’s great but I actually think more and
it’s great but I actually think more and
it’s great but I actually think more and more than like online media
more than like online media
more than like online media professionals we need to get our head
professionals we need to get our head
professionals we need to get our head out of our butt and realize that TV is
out of our butt and realize that TV is
out of our butt and realize that TV is doing fine TV ratings are sure maybe
doing fine TV ratings are sure maybe
doing fine TV ratings are sure maybe they’re eroding a bit but but at the end
they’re eroding a bit but but at the end
they’re eroding a bit but but at the end of the day they’re producing a kind of
of the day they’re producing a kind of
of the day they’re producing a kind of probe
probe
probe timing that remains unparalleled online
timing that remains unparalleled online
timing that remains unparalleled online and to you can still can get news you
and to you can still can get news you
and to you can still can get news you still can’t get sports sure CBS props to
still can’t get sports sure CBS props to
still can’t get sports sure CBS props to them despite competing with us in the
them despite competing with us in the
them despite competing with us in the category but props to cbs4 occasionally
category but props to cbs4 occasionally
category but props to cbs4 occasionally putting like a sporting event at the
putting like a sporting event at the
putting like a sporting event at the same time on your tablet or whatever but
same time on your tablet or whatever but
same time on your tablet or whatever but I think we’re still quite a bit far off
I think we’re still quite a bit far off
I think we’re still quite a bit far off now who I think can create some kind of
now who I think can create some kind of
now who I think can create some kind of disruption to use that word are actually
disruption to use that word are actually
disruption to use that word are actually the watch modules the revision threes
the watch modules the revision threes
the watch modules the revision threes the machinima is that all of the new
the machinima is that all of the new
the machinima is that all of the new media producers that don’t have a
media producers that don’t have a
media producers that don’t have a traditional business because at the end
traditional business because at the end
traditional business because at the end of the day it did take newspapers a good
of the day it did take newspapers a good
of the day it did take newspapers a good decade before they felt the economic
decade before they felt the economic
decade before they felt the economic impact of audiences fleeing to the web
impact of audiences fleeing to the web
impact of audiences fleeing to the web so I think just because right now you’re
so I think just because right now you’re
so I think just because right now you’re still seeing TV cable and broadcast
still seeing TV cable and broadcast
still seeing TV cable and broadcast making more money than ever I don’t
making more money than ever I don’t
making more money than ever I don’t necessarily think it means that okay
necessarily think it means that okay
necessarily think it means that okay their hedge their sheltered I think
their hedge their sheltered I think
their hedge their sheltered I think you’re going to see in like the next few
you’re going to see in like the next few
you’re going to see in like the next few years already now you walk into an ad
years already now you walk into an ad
years already now you walk into an ad agency yes the big checks are being
agency yes the big checks are being
agency yes the big checks are being written for TV but it is almost like a
written for TV but it is almost like a
written for TV but it is almost like a digital first strategy in that everybody
digital first strategy in that everybody
digital first strategy in that everybody realizes that okay even if we do a TV ad
realizes that okay even if we do a TV ad
realizes that okay even if we do a TV ad how do we get people on social media to
how do we get people on social media to
how do we get people on social media to you know talk about it and all that and
you know talk about it and all that and
you know talk about it and all that and I think there’s going to come a moment
I think there’s going to come a moment
I think there’s going to come a moment where you you’d think of mary meeker
where you you’d think of mary meeker
where you you’d think of mary meeker former morgan stanley analysts currently
former morgan stanley analysts currently
former morgan stanley analysts currently a vc with kleiner perkins who says at
a vc with kleiner perkins who says at
a vc with kleiner perkins who says at the end of the day consumers spend about
the end of the day consumers spend about
the end of the day consumers spend about thirty percent of their time online on
thirty percent of their time online on
thirty percent of their time online on tablets on mobile but marketers are only
tablets on mobile but marketers are only
tablets on mobile but marketers are only spending about nineteen percent of their
spending about nineteen percent of their
spending about nineteen percent of their budgets that’s a 20 billion dollar
budgets that’s a 20 billion dollar
budgets that’s a 20 billion dollar opportunity for the Foxes the Viacom’s d
opportunity for the Foxes the Viacom’s d
opportunity for the Foxes the Viacom’s d nbc’s they have no incentive to go after
nbc’s they have no incentive to go after
nbc’s they have no incentive to go after that because that’s still a much smaller
that because that’s still a much smaller
that because that’s still a much smaller chunk than the 75 billion dollar TV ad
chunk than the 75 billion dollar TV ad
chunk than the 75 billion dollar TV ad market and the 250 million dollar
market and the 250 million dollar
market and the 250 million dollar overall let’s say entertainment market
overall let’s say entertainment market
overall let’s say entertainment market including dvds and home you know and
including dvds and home you know and
including dvds and home you know and theatrical releases but to the watch
theatrical releases but to the watch
theatrical releases but to the watch modules of the world we have no
modules of the world we have no
modules of the world we have no traditional business to defend we are
traditional business to defend we are
traditional business to defend we are going to go after that 20 billion and
going to go after that 20 billion and
going to go after that 20 billion and and my last point is this is the reality
and my last point is this is the reality
and my last point is this is the reality is even if our top-line revenues the
is even if our top-line revenues the
is even if our top-line revenues the machinima is the revision 3 is the watch
machinima is the revision 3 is the watch
machinima is the revision 3 is the watch modules are category even if our top
modules are category even if our top
modules are category even if our top lines remain small new like there’s
lines remain small new like there’s
lines remain small new like there’s always the growth aspect so new media
always the growth aspect so new media
always the growth aspect so new media companies will always trade at a higher
companies will always trade at a higher
companies will always trade at a higher price to revenue multiple than old media
price to revenue multiple than old media
price to revenue multiple than old media and that i think creates an opportunity
and that i think creates an opportunity
and that i think creates an opportunity so i would say to summarize if you look
so i would say to summarize if you look
so i would say to summarize if you look at all like traditional companies
at all like traditional companies
at all like traditional companies gatekeeper like the comcast and verizon
gatekeeper like the comcast and verizon
gatekeeper like the comcast and verizon czar fine in fact they’re going to want
czar fine in fact they’re going to want
czar fine in fact they’re going to want to push the envelope the old-school
to push the envelope the old-school
to push the envelope the old-school companies like Viacom and News Corp they
companies like Viacom and News Corp they
companies like Viacom and News Corp they do face some challenges but they’re
do face some challenges but they’re
do face some challenges but they’re going to be fine where there is an
going to be fine where there is an
going to be fine where there is an opportunity are for the watch bones was
opportunity are for the watch bones was
opportunity are for the watch bones was in the revision 3 s of the world and
in the revision 3 s of the world and
in the revision 3 s of the world and that’s exciting now is this this
that’s exciting now is this this
that’s exciting now is this this actually reminds me a few weeks ago we
actually reminds me a few weeks ago we
actually reminds me a few weeks ago we were talking about whether marketers and
were talking about whether marketers and
were talking about whether marketers and advertisers should actually become
advertisers should actually become
advertisers should actually become content producers themselves and like if
content producers themselves and like if
content producers themselves and like if you think about it the reason why a
you think about it the reason why a
you think about it the reason why a television is still capturing the lion’s
television is still capturing the lion’s
television is still capturing the lion’s share of like I guess video or
share of like I guess video or
share of like I guess video or television advertising however you want
television advertising however you want
television advertising however you want to frame it is because the the
to frame it is because the the
to frame it is because the the traditional media content creators these
traditional media content creators these
traditional media content creators these guys pretty much curate the curate
guys pretty much curate the curate
guys pretty much curate the curate audience and they curate creative you
audience and they curate creative you
audience and they curate creative you know they pilot a lot of shows they test
know they pilot a lot of shows they test
know they pilot a lot of shows they test a lot of things out they run things they
a lot of things out they run things they
a lot of things out they run things they drop them they figure out what’s working
drop them they figure out what’s working
drop them they figure out what’s working and what’s going to capture that big
and what’s going to capture that big
and what’s going to capture that big audience they’re safe bet but if
audience they’re safe bet but if
audience they’re safe bet but if advertisers actually start getting smart
advertisers actually start getting smart
advertisers actually start getting smart and into the content game kind of like
and into the content game kind of like
and into the content game kind of like oldspice did and if they can keep
oldspice did and if they can keep
oldspice did and if they can keep pumping up micro content I think that
pumping up micro content I think that
pumping up micro content I think that might be in they might be also in a
might be in they might be also in a
might be in they might be also in a position to disrupt I guess mainstream
position to disrupt I guess mainstream
position to disrupt I guess mainstream entertainment yeah I mean we started
entertainment yeah I mean we started
entertainment yeah I mean we started talking about this because of the
talking about this because of the
talking about this because of the TechCrunch article I wrote which which
TechCrunch article I wrote which which
TechCrunch article I wrote which which touched on why VCS prefer to invest in
touched on why VCS prefer to invest in
touched on why VCS prefer to invest in technology and we didn’t really touch
technology and we didn’t really touch
technology and we didn’t really touch that at all which is great so we’ll
that at all which is great so we’ll
that at all which is great so we’ll probably follow up with this next week
probably follow up with this next week
probably follow up with this next week and we’ll ask that question is art VC
and we’ll ask that question is art VC
and we’ll ask that question is art VC venture capitalists ever going to
venture capitalists ever going to
venture capitalists ever going to embrace investing in content and after
embrace investing in content and after
embrace investing in content and after you know I wish the ash of 2011 could go
you know I wish the ash of 2011 could go
you know I wish the ash of 2011 could go back in time to the ash of 2006 and play
back in time to the ash of 2006 and play
back in time to the ash of 2006 and play this to him and say even five six years
this to him and say even five six years
this to him and say even five six years afterwards vc still are not embracing
afterwards vc still are not embracing
afterwards vc still are not embracing content they’re very rare so we’ll
content they’re very rare so we’ll
content they’re very rare so we’ll probably tackle that next week on a
probably tackle that next week on a
probably tackle that next week on a segment because that’s something we
segment because that’s something we
segment because that’s something we didn’t touch at all we’re gonna take a
didn’t touch at all we’re gonna take a
didn’t touch at all we’re gonna take a short break we’re going to come back and
short break we’re going to come back and
short break we’re going to come back and we’re going to talk about is the online
we’re going to talk about is the online
we’re going to talk about is the online ad market the ad networks the ad
ad market the ad networks the ad
ad market the ad networks the ad exchanges the add content creators are
exchanges the add content creators are
exchanges the add content creators are we about to go through a period of boom
we about to go through a period of boom
we about to go through a period of boom or bust we’ll talk about that right
or bust we’ll talk about that right
or bust we’ll talk about that right after the break
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