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HipMojo 5B: Content or Distribution


welcome to the second installment of hip

welcome to the second installment of hip mojo so now we’re going to talk about

mojo so now we’re going to talk about

mojo so now we’re going to talk about content versus distribution you working

content versus distribution you working

content versus distribution you working at cells yes I do what is more important

at cells yes I do what is more important

at cells yes I do what is more important either in your opinion or advertisers

either in your opinion or advertisers

either in your opinion or advertisers opinions content or distribution well in

opinions content or distribution well in

opinions content or distribution well in an advertiser’s opinion when I talk to

an advertiser’s opinion when I talk to

an advertiser’s opinion when I talk to them they care about distribution they

them they care about distribution they

them they care about distribution they want to reach their target but at the

want to reach their target but at the

want to reach their target but at the same time content is also very important

same time content is also very important

same time content is also very important it gives context chew a lateen whatever

it gives context chew a lateen whatever

it gives context chew a lateen whatever campaign that they might be running at

campaign that they might be running at

campaign that they might be running at the time it’s a good thing you added

the time it’s a good thing you added

the time it’s a good thing you added that second part otherwise I would have

that second part otherwise I would have

that second part otherwise I would have had to look for a new sales guy but

had to look for a new sales guy but

had to look for a new sales guy but let’s talk a bit about Netflix are you a

let’s talk a bit about Netflix are you a

let’s talk a bit about Netflix are you a netflix user yeah i love netflix i mean

netflix user yeah i love netflix i mean

netflix user yeah i love netflix i mean it’s it’s great for you know uncovering

it’s it’s great for you know uncovering

it’s it’s great for you know uncovering you know independent films and

you know independent films and

you know independent films and documentaries and you know it comes at a

documentaries and you know it comes at a

documentaries and you know it comes at a great price so Netflix basically which

great price so Netflix basically which

great price so Netflix basically which has tripled its stock price in the last

has tripled its stock price in the last

has tripled its stock price in the last 18 months Netflix saw at ten percent of

18 months Netflix saw at ten percent of

18 months Netflix saw at ten percent of operation of its market cap when stars

operation of its market cap when stars

operation of its market cap when stars refused to renew stars was only charging

refused to renew stars was only charging

refused to renew stars was only charging Netflix 30 million dollars a year but it

Netflix 30 million dollars a year but it

Netflix 30 million dollars a year but it wasn’t just stars content that Netflix

wasn’t just stars content that Netflix

wasn’t just stars content that Netflix was getting stars was also

was getting stars was also

was getting stars was also redistributing a lot of great super

redistributing a lot of great super

redistributing a lot of great super premium content that they had now tell

premium content that they had now tell

premium content that they had now tell me would you continue to subscribe to

me would you continue to subscribe to

me would you continue to subscribe to netflix if it started to lose a lot of

netflix if it started to lose a lot of

netflix if it started to lose a lot of the programming that you come to enjoy

the programming that you come to enjoy

the programming that you come to enjoy on netflix or does the convenience of

on netflix or does the convenience of

on netflix or does the convenience of the netflix and whatever library that

the netflix and whatever library that

the netflix and whatever library that remains is that enough to keep you

remains is that enough to keep you

remains is that enough to keep you subscribing well netflix does have great

subscribing well netflix does have great

subscribing well netflix does have great content but they just they need to keep

content but they just they need to keep

content but they just they need to keep adding more and more and more i want to

adding more and more and more i want to

adding more and more and more i want to see more you know newer movies more

see more you know newer movies more

see more you know newer movies more television shows they’re doing a great

television shows they’re doing a great

television shows they’re doing a great job but they really need to add content

job but they really need to add content

job but they really need to add content they can’t be losing content at this

they can’t be losing content at this

they can’t be losing content at this point yeah and my reality my guess is

point yeah and my reality my guess is

point yeah and my reality my guess is that the big media companies now you

that the big media companies now you

that the big media companies now you know they view netflix as the frenemy

know they view netflix as the frenemy

know they view netflix as the frenemy they like the distribution and the

they like the distribution and the

they like the distribution and the audience that they’ve aggregated but at

audience that they’ve aggregated but at

audience that they’ve aggregated but at the same time they’re sort of seeing the

the same time they’re sort of seeing the

the same time they’re sort of seeing the storyline that developed with Google and

storyline that developed with Google and

storyline that developed with Google and Apple which is Netflix is getting so

Apple which is Netflix is getting so

Apple which is Netflix is getting so powerful on the backs of the content

powerful on the backs of the content

powerful on the backs of the content owners I wouldn’t be surprised to see a

owners I wouldn’t be surprised to see a

owners I wouldn’t be surprised to see a lot more pressure on netflix i used to

lot more pressure on netflix i used to

lot more pressure on netflix i used to own the stock ages ago i saw it rise if

own the stock ages ago i saw it rise if

own the stock ages ago i saw it rise if i owned the stock at 12 billion dollar

i owned the stock at 12 billion dollar

i owned the stock at 12 billion dollar market cap i would be worried I’m not

market cap i would be worried I’m not

market cap i would be worried I’m not saying to sell it short it or buy it I’m

saying to sell it short it or buy it I’m

saying to sell it short it or buy it I’m just saying at 12 billion its price for

just saying at 12 billion its price for

just saying at 12 billion its price for perfection let’s shift gears keeping on

perfection let’s shift gears keeping on

perfection let’s shift gears keeping on with the content versus distribution

with the content versus distribution

with the content versus distribution team when Charlie Sheen basically gave

team when Charlie Sheen basically gave

team when Charlie Sheen basically gave CBS the one-finger salute people said

CBS the one-finger salute people said

CBS the one-finger salute people said well charlie is the star that show can’t

well charlie is the star that show can’t

well charlie is the star that show can’t go on now two and a half men is going to

go on now two and a half men is going to

go on now two and a half men is going to come back with ashton kutcher which I

come back with ashton kutcher which I

come back with ashton kutcher which I actually think I’m more interested in

actually think I’m more interested in

actually think I’m more interested in watching I didn’t I even to watch the

watching I didn’t I even to watch the

watching I didn’t I even to watch the show before but I’m interested in

show before but I’m interested in

show before but I’m interested in watching the show now with Ashley at

watching the show now with Ashley at

watching the show now with Ashley at least to see how it’s going to turn up

least to see how it’s going to turn up

least to see how it’s going to turn up now is there not a parallel with the way

now is there not a parallel with the way

now is there not a parallel with the way that CBS sort of just said okay no

that CBS sort of just said okay no

that CBS sort of just said okay no problem charlie you could leave we’re

problem charlie you could leave we’re

problem charlie you could leave we’re gonna you know the Sun rises tomorrow is

gonna you know the Sun rises tomorrow is

gonna you know the Sun rises tomorrow is that not the same parallel with Oprah I

that not the same parallel with Oprah I

that not the same parallel with Oprah I mean she had massive syndication massive

mean she had massive syndication massive

mean she had massive syndication massive distribution she decides to leave to

distribution she decides to leave to

distribution she decides to leave to basically launcher all network and it’s

basically launcher all network and it’s

basically launcher all network and it’s not going so well why do you think

not going so well why do you think

not going so well why do you think Oprah’s new network is not doing well

Oprah’s new network is not doing well

Oprah’s new network is not doing well well I think there’s there’s a number of

well I think there’s there’s a number of

well I think there’s there’s a number of things first I think the audience was

things first I think the audience was

things first I think the audience was really expecting the oprah winfrey show

really expecting the oprah winfrey show

really expecting the oprah winfrey show on steroids and that’s not what they got

on steroids and that’s not what they got

on steroids and that’s not what they got I mean I’ve only watched a few different

I mean I’ve only watched a few different

I mean I’ve only watched a few different shows egon on The Oprah network but you

shows egon on The Oprah network but you

shows egon on The Oprah network but you know I just the content doesn’t feel

know I just the content doesn’t feel

know I just the content doesn’t feel like it’s got the Oprah’s magic touch

like it’s got the Oprah’s magic touch

like it’s got the Oprah’s magic touch and i think that’s that’s definitely you

and i think that’s that’s definitely you

and i think that’s that’s definitely you know what’s what’s missing look it now

know what’s what’s missing look it now

know what’s what’s missing look it now shifting gears on the third theme in

shifting gears on the third theme in

shifting gears on the third theme in this content versus distribution front

this content versus distribution front

this content versus distribution front the youtube monopoly that i call they

the youtube monopoly that i call they

the youtube monopoly that i call they own you know 40 plus percent of view so

own you know 40 plus percent of view so

own you know 40 plus percent of view so it’s not really a monopoly but they’re

it’s not really a monopoly but they’re

it’s not really a monopoly but they’re the dominant 800-pound gorilla where do

the dominant 800-pound gorilla where do

the dominant 800-pound gorilla where do you watch videos outside of YouTube oh

you watch videos outside of YouTube oh

you watch videos outside of YouTube oh that’s a tough one I mean funny or die

that’s a tough one I mean funny or die

that’s a tough one I mean funny or die obviously watchmojo.com you know that’s

obviously watchmojo.com you know that’s

obviously watchmojo.com you know that’s that’s pretty much yet other otherwise

that’s pretty much yet other otherwise

that’s pretty much yet other otherwise it’s YouTube okay so we wrote an article

it’s YouTube okay so we wrote an article

it’s YouTube okay so we wrote an article on media post and you know I asked a lot

on media post and you know I asked a lot

on media post and you know I asked a lot of people formal informal social

of people formal informal social

of people formal informal social networks business networks personal

networks business networks personal

networks business networks personal networks and here’s I think the way you

networks and here’s I think the way you

networks and here’s I think the way you should look at it I think by and large

should look at it I think by and large

should look at it I think by and large what you’re seeing when you look at the

what you’re seeing when you look at the

what you’re seeing when you look at the top ten comscore properties you got

top ten comscore properties you got

top ten comscore properties you got YouTube which is the dominant player and

YouTube which is the dominant player and

YouTube which is the dominant player and then you have the facebooks the vivos

then you have the facebooks the vivos

then you have the facebooks the vivos and then you have the traditional media

and then you have the traditional media

and then you have the traditional media companies like turn our digital which is

companies like turn our digital which is

companies like turn our digital which is CNN like NBC digital and those companies

CNN like NBC digital and those companies

CNN like NBC digital and those companies basically if they restrict access to

basically if they restrict access to

basically if they restrict access to their content on sites like you know

their content on sites like you know

their content on sites like you know YouTube then they will build audiences

YouTube then they will build audiences

YouTube then they will build audiences after that I mean you got the to a

after that I mean you got the to a

after that I mean you got the to a lesser extent the other aggregators

lesser extent the other aggregators

lesser extent the other aggregators metacafe dailymotion the adult sites

metacafe dailymotion the adult sites

metacafe dailymotion the adult sites have actually embraced you know free

have actually embraced you know free

have actually embraced you know free models quite well and then you mentioned

models quite well and then you mentioned

models quite well and then you mentioned the funny sites interestingly I think a

the funny sites interestingly I think a

the funny sites interestingly I think a lot of the funny sites whether it’s

lot of the funny sites whether it’s

lot of the funny sites whether it’s funny

funny

funny CollegeHumor and the onion they’ve

CollegeHumor and the onion they’ve

CollegeHumor and the onion they’ve actually managed for whatever reason to

actually managed for whatever reason to

actually managed for whatever reason to build up some kind of audience

build up some kind of audience

build up some kind of audience interaction outside of YouTube but we

interaction outside of YouTube but we

interaction outside of YouTube but we have this discussion you know for

have this discussion you know for

have this discussion you know for watchmojo we generate half of our views

watchmojo we generate half of our views

watchmojo we generate half of our views on YouTube we probably generate 5% of

on YouTube we probably generate 5% of

on YouTube we probably generate 5% of them on on on watchmojo.com I think with

them on on on watchmojo.com I think with

them on on on watchmojo.com I think with the announcement that comscore and

the announcement that comscore and

the announcement that comscore and YouTube are going to open up the data

YouTube are going to open up the data

YouTube are going to open up the data and let advertisers see which content

and let advertisers see which content

and let advertisers see which content providers reach what kind of audience is

providers reach what kind of audience is

providers reach what kind of audience is on YouTube we’re at a point where I

on YouTube we’re at a point where I

on YouTube we’re at a point where I think it’s almost fine to say you know

think it’s almost fine to say you know

think it’s almost fine to say you know what the sites there is a microsite on

what the sites there is a microsite on

what the sites there is a microsite on on steroids but you might as well just

on steroids but you might as well just

on steroids but you might as well just you know focus on on YouTube do you see

you know focus on on YouTube do you see

you know focus on on YouTube do you see any drawbacks to that as when you talk

any drawbacks to that as when you talk

any drawbacks to that as when you talk to advertisers to focus on YouTube do

to advertisers to focus on YouTube do

to advertisers to focus on YouTube do you think there should be an emphasis on

you think there should be an emphasis on

you think there should be an emphasis on one’s owned and operated property well I

one’s owned and operated property well I

one’s owned and operated property well I mean I always think that it’s good to

mean I always think that it’s good to

mean I always think that it’s good to build up your your property because you

build up your your property because you

build up your your property because you have full control over everything I mean

have full control over everything I mean

have full control over everything I mean like you always say you know this is

like you always say you know this is

like you always say you know this is YouTube’s world we’re just streaming in

YouTube’s world we’re just streaming in

YouTube’s world we’re just streaming in it and I think you know that really

it and I think you know that really

it and I think you know that really limits our ability to attract

limits our ability to attract

limits our ability to attract advertisers if we can only go through

advertisers if we can only go through

advertisers if we can only go through you know our our inventory on YouTube

you know our our inventory on YouTube

you know our our inventory on YouTube you know it just it just limits us and

you know it just it just limits us and

you know it just it just limits us and what do you think well I want to ask you

what do you think well I want to ask you

what do you think well I want to ask you what do you think actually about the

what do you think actually about the

what do you think actually about the fact that some like we actually haven’t

fact that some like we actually haven’t

fact that some like we actually haven’t owned and operated but there are some

owned and operated but there are some

owned and operated but there are some large sites like machinima which is

large sites like machinima which is

large sites like machinima which is massive on YouTube you go to their

massive on YouTube you go to their

massive on YouTube you go to their website and it’s just a corporate page

website and it’s just a corporate page

website and it’s just a corporate page do you think that’s smart or do you

do you think that’s smart or do you

do you think that’s smart or do you think they should have some kind of

think they should have some kind of

think they should have some kind of consumer facing presence on their own

consumer facing presence on their own

consumer facing presence on their own and operated as well well I think at

and operated as well well I think at

and operated as well well I think at this point it’s it’s really moved they

this point it’s it’s really moved they

this point it’s it’s really moved they have they’ve built their business on

have they’ve built their business on

have they’ve built their business on YouTube it’s clearly been successful for

YouTube it’s clearly been successful for

YouTube it’s clearly been successful for them I don’t see any reason why they

them I don’t see any reason why they

them I don’t see any reason why they should go back and build a

should go back and build a

should go back and build a consumer-facing you know website last

consumer-facing you know website last

consumer-facing you know website last question on this before we move to

question on this before we move to

question on this before we move to lightning round if you had to pick one

lightning round if you had to pick one

lightning round if you had to pick one thing to build your business on would it

thing to build your business on would it

thing to build your business on would it be content or distribution content I

be content or distribution content I

be content or distribution content I mean you’re never going to get the

mean you’re never going to get the

mean you’re never going to get the distribution without good content so

distribution without good content so

distribution without good content so that always comes first yeah i agree

that always comes first yeah i agree

that always comes first yeah i agree content i hate to agree on something but

content i hate to agree on something but

content i hate to agree on something but we’ll be back lightning round email the

we’ll be back lightning round email the

we’ll be back lightning round email the week right after this break

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