welcome to hip mojo shows 17 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 this week we’re going to be talking
and this week we’re going to be talking
and this week we’re going to be talking about the power of exclusive content or
about the power of exclusive content or
about the power of exclusive content or lack thereof there you go Zuckerberg vs.
lack thereof there you go Zuckerberg vs.
lack thereof there you go Zuckerberg vs. page and brin and a whole bunch of other
page and brin and a whole bunch of other
page and brin and a whole bunch of other things in lightning round so let’s get
things in lightning round so let’s get
things in lightning round so let’s get started so I want to ask you ash do you
started so I want to ask you ash do you
started so I want to ask you ash do you think exclusive content can really make
think exclusive content can really make
think exclusive content can really make a difference for distributors such as
a difference for distributors such as
a difference for distributors such as ISPs yeah I mean if an ISP wanted to win
ISPs yeah I mean if an ISP wanted to win
ISPs yeah I mean if an ISP wanted to win over more users there’s an argument that
over more users there’s an argument that
over more users there’s an argument that could be made that if they were to get a
could be made that if they were to get a
could be made that if they were to get a bunch of rights to content and said you
bunch of rights to content and said you
bunch of rights to content and said you can only get this content if you get
can only get this content if you get
can only get this content if you get your internet through us will it make a
your internet through us will it make a
your internet through us will it make a difference maybe I don’t really think so
difference maybe I don’t really think so
difference maybe I don’t really think so we’ve done a few deals in the past where
we’ve done a few deals in the past where
we’ve done a few deals in the past where we’ve given exclusive rights for like a
we’ve given exclusive rights for like a
we’ve given exclusive rights for like a limited period to a potential
limited period to a potential
limited period to a potential distributors so not so much an ISP like
distributors so not so much an ISP like
distributors so not so much an ISP like in 2008 our friends over at myspace paid
in 2008 our friends over at myspace paid
in 2008 our friends over at myspace paid us you know a mid five digit sum so not
us you know a mid five digit sum so not
us you know a mid five digit sum so not huge but not nothing so they paid us a
huge but not nothing so they paid us a
huge but not nothing so they paid us a bunch of cash for us to give them a
bunch of cash for us to give them a
bunch of cash for us to give them a bunch of content for one month before we
bunch of content for one month before we
bunch of content for one month before we then put it on YouTube and everywhere
then put it on YouTube and everywhere
then put it on YouTube and everywhere else as much as it was nice we’re not
else as much as it was nice we’re not
else as much as it was nice we’re not you know we were like a maid for web
you know we were like a maid for web
you know we were like a maid for web production company so I think our
production company so I think our
production company so I think our content was good and they were
content was good and they were
content was good and they were experimenting with it I think word might
experimenting with it I think word might
experimenting with it I think word might might might make a difference is what
might might make a difference is what
might might make a difference is what super premium content around established
super premium content around established
super premium content around established brands established programming like if
brands established programming like if
brands established programming like if you are to get a sports event if you are
you are to get a sports event if you are
you are to get a sports event if you are to get a music show if you are to get in
to get a music show if you are to get in
to get a music show if you are to get in the case of Netflix arrested development
the case of Netflix arrested development
the case of Netflix arrested development I think it might make a difference but
I think it might make a difference but
I think it might make a difference but to me it’s more marketing I don’t really
to me it’s more marketing I don’t really
to me it’s more marketing I don’t really like in the states you can’t even
like in the states you can’t even
like in the states you can’t even necessarily just pick whatever isp you
necessarily just pick whatever isp you
necessarily just pick whatever isp you want right like if you live in a certain
want right like if you live in a certain
want right like if you live in a certain area you might not be able to get
area you might not be able to get
area you might not be able to get verizon or comcast but let’s say in a
verizon or comcast but let’s say in a
verizon or comcast but let’s say in a bizarro world you did I mean what do you
bizarro world you did I mean what do you
bizarro world you did I mean what do you think do you really think like if you
think do you really think like if you
think do you really think like if you had access to oh my god I’m gonna get
had access to oh my god I’m gonna get
had access to oh my god I’m gonna get arrested development if I sign up with
arrested development if I sign up with
arrested development if I sign up with comcast whereas verizon doesn’t have it
comcast whereas verizon doesn’t have it
comcast whereas verizon doesn’t have it does it really make a difference well I
does it really make a difference well I
does it really make a difference well I don’t think they can hear the cable out
don’t think they can hear the cable out
don’t think they can hear the cable out and I don’t I don’t think you can
and I don’t I don’t think you can
and I don’t I don’t think you can compare like something such as arrested
compare like something such as arrested
compare like something such as arrested development’s like that level of content
development’s like that level of content
development’s like that level of content to made for web content um I don’t know
to made for web content um I don’t know
to made for web content um I don’t know what the average arrested development
what the average arrested development
what the average arrested development fine how just just how fanatical they
fine how just just how fanatical they
fine how just just how fanatical they are but I can’t imagine someone actually
are but I can’t imagine someone actually
are but I can’t imagine someone actually switching is ps4 access to the content
switching is ps4 access to the content
switching is ps4 access to the content especially knowing that somewhere
especially knowing that somewhere
especially knowing that somewhere somehow some way they’ll be able to
somehow some way they’ll be able to
somehow some way they’ll be able to pirate it or download it somewhere else
pirate it or download it somewhere else
pirate it or download it somewhere else and you know I I think it’s an honor
and you know I I think it’s an honor
and you know I I think it’s an honor that will recommending that of course
that will recommending that of course
that will recommending that of course positive but and I think that’s the
positive but and I think that’s the
positive but and I think that’s the difference and I think this is weird
difference and I think this is weird
difference and I think this is weird like in the case of ISPs where they’re
like in the case of ISPs where they’re
like in the case of ISPs where they’re making a mistake they’re like well
making a mistake they’re like well
making a mistake they’re like well networks used to television networks
networks used to television networks
networks used to television networks used to compete with content therefore
used to compete with content therefore
used to compete with content therefore we can compete with content as well but
we can compete with content as well but
we can compete with content as well but you know the way NBC and ABC used to
you know the way NBC and ABC used to
you know the way NBC and ABC used to compete back in the days before the
compete back in the days before the
compete back in the days before the internet is you had to choose which one
internet is you had to choose which one
internet is you had to choose which one you are watching during a specific time
you are watching during a specific time
you are watching during a specific time on a specific day you didn’t have to
on a specific day you didn’t have to
on a specific day you didn’t have to ultimately choose between one network or
ultimately choose between one network or
ultimately choose between one network or the other for the rest of your life and
the other for the rest of your life and
the other for the rest of your life and I think it’s it’s it’s a really steep
I think it’s it’s it’s a really steep
I think it’s it’s it’s a really steep decision I can’t see a lot of you know
decision I can’t see a lot of you know
decision I can’t see a lot of you know distributors buying into it and I really
distributors buying into it and I really
distributors buying into it and I really can’t see it working well here’s the
can’t see it working well here’s the
can’t see it working well here’s the interesting thing some time ago I wrote
interesting thing some time ago I wrote
interesting thing some time ago I wrote an article saying that exclusivity was
an article saying that exclusivity was
an article saying that exclusivity was going to make a comeback and since then
going to make a comeback and since then
going to make a comeback and since then YouTube has spent 100 to 250 million
YouTube has spent 100 to 250 million
YouTube has spent 100 to 250 million dollars to get content for one year
dollars to get content for one year
dollars to get content for one year before it goes elsewhere and you’ve seen
before it goes elsewhere and you’ve seen
before it goes elsewhere and you’ve seen Netflix bring back arrested development
Netflix bring back arrested development
Netflix bring back arrested development and you’re going to see a lot more of
and you’re going to see a lot more of
and you’re going to see a lot more of this kind of exclusive content but the
this kind of exclusive content but the
this kind of exclusive content but the dynamics have changed you know I always
dynamics have changed you know I always
dynamics have changed you know I always say that content producers are like a
say that content producers are like a
say that content producers are like a woman and distributors are like a man
woman and distributors are like a man
woman and distributors are like a man you’re going to do in trouble again yes
you’re going to do in trouble again yes
you’re going to do in trouble again yes yes but hello this one I think makes a
yes but hello this one I think makes a
yes but hello this one I think makes a lot of sense why content producers want
lot of sense why content producers want
lot of sense why content producers want promises they want exclusivity you know
promises they want exclusivity you know
promises they want exclusivity you know they want like sweetheart deals they
they want like sweetheart deals they
they want like sweetheart deals they want I’m committed to you distributors
want I’m committed to you distributors
want I’m committed to you distributors are like will sleep with anyone give us
are like will sleep with anyone give us
are like will sleep with anyone give us your content we’re not going to be
your content we’re not going to be
your content we’re not going to be selective no guarantees no promises you
selective no guarantees no promises you
selective no guarantees no promises you know no minimum guarantees no promises
know no minimum guarantees no promises
know no minimum guarantees no promises we’re going to work with your
we’re going to work with your
we’re going to work with your competitors and all that so that dynamic
competitors and all that so that dynamic
competitors and all that so that dynamic is a bit funny right but what’s really
is a bit funny right but what’s really
is a bit funny right but what’s really interesting is online it’s a lot more
interesting is online it’s a lot more
interesting is online it’s a lot more ancestress than that actually not online
ancestress than that actually not online
ancestress than that actually not online in marketing in advertising and
in marketing in advertising and
in marketing in advertising and publishing why because it’s not just a
publishing why because it’s not just a
publishing why because it’s not just a two entity-relationship you also have to
two entity-relationship you also have to
two entity-relationship you also have to include the viewer obviously the belle
include the viewer obviously the belle
include the viewer obviously the belle of the ball and the advertiser who’s
of the ball and the advertiser who’s
of the ball and the advertiser who’s like the sugar daddy that makes
like the sugar daddy that makes
like the sugar daddy that makes everything go around what’s happened
everything go around what’s happened
everything go around what’s happened though is instead of getting the
though is instead of getting the
though is instead of getting the advertiser to maybe go up to a Content
advertiser to maybe go up to a Content
advertiser to maybe go up to a Content producer and say we’ll pay you under the
producer and say we’ll pay you under the
producer and say we’ll pay you under the guise of branded content I do think
guise of branded content I do think
guise of branded content I do think you’re seeing a new sugar daddy so to
you’re seeing a new sugar daddy so to
you’re seeing a new sugar daddy so to speak which is a distributor I think
speak which is a distributor I think
speak which is a distributor I think because they cause how do you really
because they cause how do you really
because they cause how do you really define distributor because in
define distributor because in
define distributor because in case you know one could argue the ice
case you know one could argue the ice
case you know one could argue the ice piece distributor or another case is
piece distributor or another case is
piece distributor or another case is someone could argue YouTube but but
someone could argue YouTube but but
someone could argue YouTube but but those are both distributors it’s
those are both distributors it’s
those are both distributors it’s basically the one that aggregates the
basically the one that aggregates the
basically the one that aggregates the content yeah and then sort of has access
content yeah and then sort of has access
content yeah and then sort of has access and gets the eyeballs it’s yeah but I
and gets the eyeballs it’s yeah but I
and gets the eyeballs it’s yeah but I you know if if YouTube for example had a
you know if if YouTube for example had a
you know if if YouTube for example had a piece of exclusive content it wouldn’t
piece of exclusive content it wouldn’t
piece of exclusive content it wouldn’t be the same as because I wouldn’t have
be the same as because I wouldn’t have
be the same as because I wouldn’t have to make a choice it’s not like I have to
to make a choice it’s not like I have to
to make a choice it’s not like I have to choose once and for all do i only have
choose once and for all do i only have
choose once and for all do i only have you too or do I only have megavideo well
you too or do I only have megavideo well
you too or do I only have megavideo well I think that’s a great point that there
I think that’s a great point that there
I think that’s a great point that there is a difference in terms of impact to
is a difference in terms of impact to
is a difference in terms of impact to you see that you raise an excellent
you see that you raise an excellent
you see that you raise an excellent point I think there’s a difference in
point I think there’s a difference in
point I think there’s a difference in terms of the impact to the to the viewer
terms of the impact to the to the viewer
terms of the impact to the to the viewer is different if the ISP gets access to
is different if the ISP gets access to
is different if the ISP gets access to that exclusive content because you might
that exclusive content because you might
that exclusive content because you might not you might not be able to watch that
not you might not be able to watch that
not you might not be able to watch that as a viewer whereas if it’s the YouTube
as a viewer whereas if it’s the YouTube
as a viewer whereas if it’s the YouTube or the myspace I gets exclusive
or the myspace I gets exclusive
or the myspace I gets exclusive everybody could see it I think the
everybody could see it I think the
everybody could see it I think the impact is either felt upon by the
impact is either felt upon by the
impact is either felt upon by the producer or the viewer right like if you
producer or the viewer right like if you
producer or the viewer right like if you make a decision to go as a producer to
make a decision to go as a producer to
make a decision to go as a producer to YouTube you’re really foregoing like
YouTube you’re really foregoing like
YouTube you’re really foregoing like you’re getting some money the viewer is
you’re getting some money the viewer is
you’re getting some money the viewer is more or less equally off right I just
more or less equally off right I just
more or less equally off right I just don’t think it makes that much of a
don’t think it makes that much of a
don’t think it makes that much of a difference but I do think it’s going to
difference but I do think it’s going to
difference but I do think it’s going to be a big selling point I see a lot of
be a big selling point I see a lot of
be a big selling point I see a lot of content producers going for this because
content producers going for this because
content producers going for this because we’ve seen that high resolution will not
we’ve seen that high resolution will not
we’ve seen that high resolution will not work hyper distribution does not work we
work hyper distribution does not work we
work hyper distribution does not work we can literally like nuke every
can literally like nuke every
can literally like nuke every distribution partner we have apart from
distribution partner we have apart from
distribution partner we have apart from two or three and you can imagine who
two or three and you can imagine who
two or three and you can imagine who those are and our business is the same
those are and our business is the same
those are and our business is the same and this was a big thing where a lot of
and this was a big thing where a lot of
and this was a big thing where a lot of other watch modules failed because they
other watch modules failed because they
other watch modules failed because they were like oh no ash you’re an idiot for
were like oh no ash you’re an idiot for
were like oh no ash you’re an idiot for charging licensing revenue you should
charging licensing revenue you should
charging licensing revenue you should just give up your content to everyone
just give up your content to everyone
just give up your content to everyone and get all this you know pennies which
and get all this you know pennies which
and get all this you know pennies which will become in two dimes and quarters
will become in two dimes and quarters
will become in two dimes and quarters and dollars I got news for you we’re
and dollars I got news for you we’re
and dollars I got news for you we’re still talking Nichols right so I think
still talking Nichols right so I think
still talking Nichols right so I think as a producer you are better off to say
as a producer you are better off to say
as a producer you are better off to say you know what screw it we’re just going
you know what screw it we’re just going
you know what screw it we’re just going to do a deal with YouTube MySpace crap
to do a deal with YouTube MySpace crap
to do a deal with YouTube MySpace crap stir get a million bucks and we’re going
stir get a million bucks and we’re going
stir get a million bucks and we’re going to work with them for a year and then we
to work with them for a year and then we
to work with them for a year and then we can put it elsewhere so as a producer
can put it elsewhere so as a producer
can put it elsewhere so as a producer it’s a no-brainer and I just think as a
it’s a no-brainer and I just think as a
it’s a no-brainer and I just think as a distributor whether you’re an ISP or an
distributor whether you’re an ISP or an
distributor whether you’re an ISP or an aggregator like YouTube it’s a selling
aggregator like YouTube it’s a selling
aggregator like YouTube it’s a selling point to an advertiser to say look you
point to an advertiser to say look you
point to an advertiser to say look you can only get this content with us and
can only get this content with us and
can only get this content with us and the viewer doesn’t care i think the
the viewer doesn’t care i think the
the viewer doesn’t care i think the viewer just wants you know entertainment
viewer just wants you know entertainment
viewer just wants you know entertainment and escapism i really get that you know
and escapism i really get that you know
and escapism i really get that you know without the isp there’s really no point
without the isp there’s really no point
without the isp there’s really no point of access to any kind of distributor i’m
of access to any kind of distributor i’m
of access to any kind of distributor i’m still kind of lowes to look at an ISP as
still kind of lowes to look at an ISP as
still kind of lowes to look at an ISP as a distributor I just look at them as a
a distributor I just look at them as a
a distributor I just look at them as a service provider I’m more in line with
service provider I’m more in line with
service provider I’m more in line with calling Lulu
calling Lulu
calling Lulu youtube distributor because that makes
youtube distributor because that makes
youtube distributor because that makes sense but ISPs I know they they they
sense but ISPs I know they they they
sense but ISPs I know they they they offer access and they make distribution
offer access and they make distribution
offer access and they make distribution possible but I refuse to see them as
possible but I refuse to see them as
possible but I refuse to see them as district distributors so yeah I agree
district distributors so yeah I agree
district distributors so yeah I agree with you that we’re probably going to
with you that we’re probably going to
with you that we’re probably going to see more content producers looking for
see more content producers looking for
see more content producers looking for more exclusivity it makes more sense for
more exclusivity it makes more sense for
more exclusivity it makes more sense for their bottom line it helps them
their bottom line it helps them
their bottom line it helps them rationalize what they’re investing in
rationalize what they’re investing in
rationalize what they’re investing in producing this content I I couldn’t see
producing this content I I couldn’t see
producing this content I I couldn’t see anything at the ISP level anyway really
anything at the ISP level anyway really
anything at the ISP level anyway really making a difference in their market by
making a difference in their market by
making a difference in their market by going after exclusive content and I
going after exclusive content and I
going after exclusive content and I could actually see it killing off
could actually see it killing off
could actually see it killing off content producers if they tied
content producers if they tied
content producers if they tied themselves into something that’s that
themselves into something that’s that
themselves into something that’s that high up the chain so Eric Schmidt good
high up the chain so Eric Schmidt good
high up the chain so Eric Schmidt good segue to segment two Eric Schmidt former
segue to segment two Eric Schmidt former
segue to segment two Eric Schmidt former CEO Google always said advertising is
CEO Google always said advertising is
CEO Google always said advertising is the last bastion of unaccountability in
the last bastion of unaccountability in
the last bastion of unaccountability in corporate America and this explains it
corporate America and this explains it
corporate America and this explains it because I think this kind of exclusivity
because I think this kind of exclusivity
because I think this kind of exclusivity won’t really make a big difference with
won’t really make a big difference with
won’t really make a big difference with viewers the people who ultimately
viewers the people who ultimately
viewers the people who ultimately whether you know drive how much
whether you know drive how much
whether you know drive how much advertising should be spent around
advertising should be spent around
advertising should be spent around something but you’re going to see more
something but you’re going to see more
something but you’re going to see more and more of this and the reason for that
and more of this and the reason for that
and more of this and the reason for that is because content producers are sort of
is because content producers are sort of
is because content producers are sort of you know jaded they gave it up way too
you know jaded they gave it up way too
you know jaded they gave it up way too easy too much too quickly to the
easy too much too quickly to the
easy too much too quickly to the distributor’s early on and they’re
distributor’s early on and they’re
distributor’s early on and they’re paying the price for it but I think that
paying the price for it but I think that
paying the price for it but I think that as a selling point to advertisers those
as a selling point to advertisers those
as a selling point to advertisers those who control the ad relationships are
who control the ad relationships are
who control the ad relationships are usually the aggregators that the big
usually the aggregators that the big
usually the aggregators that the big distribution companies whether it’s an
distribution companies whether it’s an
distribution companies whether it’s an ad network or a YouTube so they’re going
ad network or a YouTube so they’re going
ad network or a YouTube so they’re going to be doing this quite a bit for them
to be doing this quite a bit for them
to be doing this quite a bit for them it’s a no-brainer to sign a check get
it’s a no-brainer to sign a check get
it’s a no-brainer to sign a check get content procure it for sure and then
content procure it for sure and then
content procure it for sure and then worry about monetizing later it’s a
worry about monetizing later it’s a
worry about monetizing later it’s a marketing expense I think what I also
marketing expense I think what I also
marketing expense I think what I also argued with Netflix going after as the
argued with Netflix going after as the
argued with Netflix going after as the development I don’t necessarily I mean
development I don’t necessarily I mean
development I don’t necessarily I mean they’ll probably make money or if
they’ll probably make money or if
they’ll probably make money or if they’ll break even you saw dbg doing
they’ll break even you saw dbg doing
they’ll break even you saw dbg doing those to dbg did a deal where they did
those to dbg did a deal where they did
those to dbg did a deal where they did something with that Kiefer Sutherland
something with that Kiefer Sutherland
something with that Kiefer Sutherland the the confession I think and they only
the the confession I think and they only
the the confession I think and they only did it with Hulu I don’t know the
did it with Hulu I don’t know the
did it with Hulu I don’t know the financials of whether they made money or
financials of whether they made money or
financials of whether they made money or not but it was a great marketing expense
not but it was a great marketing expense
not but it was a great marketing expense it was like look look what we’re doing
it was like look look what we’re doing
it was like look look what we’re doing we’re bringing you know super premium
we’re bringing you know super premium
we’re bringing you know super premium content to the web so it’s one of those
content to the web so it’s one of those
content to the web so it’s one of those things that doesn’t really make sense
things that doesn’t really make sense
things that doesn’t really make sense but you’re going to see a lot more of it
but you’re going to see a lot more of it
but you’re going to see a lot more of it and why is that a good segue to segment
and why is that a good segue to segment
and why is that a good segue to segment two because when we come back we’re
two because when we come back we’re
two because when we come back we’re going to talk about who is more
going to talk about who is more
going to talk about who is more indispensable the Facebook founder Mark
indispensable the Facebook founder Mark
indispensable the Facebook founder Mark Zuckerberg or Google’s co-founder Sergey
Zuckerberg or Google’s co-founder Sergey
Zuckerberg or Google’s co-founder Sergey Brin and Larry Page
”
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