everybody sticking with the theme of bracing for a new reality. This is, of course, a digital world that we live in, and it's not a surprise to anyone to hear me say that the way we consume content has really changed a lot over the last decade and is poised to continue doing so with the advent of artificial intelligence. So, on this panel, we're going to talk about digital disruption in content and media distribution, but also how we can introduce guidelines to keep innovation alive, but at the same time protect consumers. And then, of course, the big buzz these days is artificial intelligence and what that means as well for digital disruption in the context of media. So, let's start with the panel. Dar, I would love to start with you, given that you are the president of a platform that operates amongst, and I believe the figure is correct, 11 million households in Latin America. So, you are in a unique position to talk about just purely the digital transformation that your industry has witnessed over the course of the last

decade and is continuing to see disruption. So, my question to you is, in an age of increasing competition, what do you do not just to attract the audience but to retain the audience? Thank you very much. Uh, thank you for everybody. Thank you for Bloomberg for giving me this opportunity in answering your questions. We have a digital dilemma, which is, in simple words, nobody has to be left behind. We have, because of figures of the World Bank, about 2.6 billion people who are not connected to the internet, and in Latin America alone, about 120 million people. So, this brings us to how do we include all these people in the digital era, and the inclusion will bring a lot of transformation in the people's life, their education, their health system, banking, their entertainment companies. Companies will have new companies appear. We have some companies that will disappear throughout times. We have the influence in the countries within the boundaries because, as you know, the digital information has no boundaries. It goes to one place to the next without

Limits and it will change societies the way we connect to each other, the way we talk, and we've seen this in the young people. So, digital inclusion is much more than connectivity. Connectivity is only one part of it. But what do we need for digital inclusion to include? We need a very new regulatory framework, flexible, updated. As you know today, telecommunications, digital platforms, and audiovisual blurred, giving rise to a new complex and ever-changing ecosystem that enables a lot of interactions that are unimaginable. And we haven't had that for the last 10 years, so everything is changing a lot. So, we have to be, we have to level the playing field, taxes, regulatory for everybody to play in the same battlefield, if you want to call it. Also, we need to have public policies to build digital skills for all the population because entering the digital era is not easy, and we have to have conditions to enable the digital infrastructure. In order to have digital infrastructure, we need to promote the public and

private sector very strongly. It's impossible to do it the private sector alone, but we need to partner with the public sector and do it as a policy of national policy of each country to really digitalize their population. I want to give you a couple of examples that we do basically in Latin America. We have a couple of programs that they are called esqu plus, where we give connectivity through video to the different schools all around Latin America. We have around 10,000 schools connected, and what we do is teachers training and classrooms to the students, but we don't have it in the cities, obviously. These schools are scattered around Latin America in very remote places, yeah, and it's really amazing the effect that they have on the teachers and the students. MH, for example, one teacher when I was visiting one of the schools told me that he teaches, uses all these tools to teach his kids, and in order to make a grade for these kids, he asked them to make a video. So, the kids in the middle of the jungle, in the middle of the

mountains have this opportunity. Let me two more things and I'll finish and I and I pass it on to you. Another interesting interesting story is about in the Amazon in the Amazon. We have a sustainable school and we talked with the different people of the village of the school and we talk about the digital area coming with internet the video and everything and they were very enthusiastic because of all the possibilities. But one of them told me something that made me think about it which is I will be able to teach my culture. It was a native in the Amazon teach my culture Teach the World how do I take care of our Earth how do I do the medicine and how do I work with the land in a way in a sustainable way for our product. So it is very important not only to have connectivity going downwards but to collect the different cultures the different H initiative that the people have all over the world and really learn from each other in order to create a a new a new world and let me give you one.

more one more concept that I think is very important, which means which is that in order to have this old technology of this technology going forward very powerful, it needs digital literacy. What is the meaning of digital literacy? It's educating to face hate speeches, hate speeches, yeah, to educate against racism, to educate against gender discrimination, and to educate against anti-Semitism. The will of the future has to be built on solid values that we have to really take over it. In the past, we fought, and we are fighting today, wars for land, for resources, for different, for eliminating people. Everybody can remember the Holocaust and the digital inclusion, yeah, should carry the flag, should carry the flag of the development, and should be another way to promote peace in the world. Thank you. Well articulated the case digital inclusion very well in digital connectivity, which leads me nicely perhaps to our next panelist. You were in a unique position because you've seen the transition of the world away from desktop to mobile, and now increasingly

towards AI. How do you think AI is going to disrupt the way we consume media? Uh, Jan, first, thank you for being here. Thank you for the opportunity. I see a lot of users in the room. Yeah, speaking about AI, I think AI has the power to be another catalyst of efficiency in the society we live in, through democratization of access. You spoke to him about media democratization. Some people call it fragmentation, but in reality, with democratized media, TR not only can watch anything anywhere with the right guidelines in respect to intellectual property, but also have a new universe of the creative economy with the creators. So, that's the second part. And later, recently, we saw in the last 10 years democratization of the ability to be an entrepreneur. Google in Brazil, we have been around 20 years in Brazil, and we have accelerated in a startup campus here about 450 companies. So, that means power to the people. And we think that AI, to answer your question, has the power to help everyone. We see three types of AI.

ai for the businesses to increase revenues, and we have that already pretty much in the market. We have Brazilian companies and companies all around the world using artificial intelligence to do better revenue-generating programs, through agents, through voice ordering, through better media. And that brings the second bucket of opportunities, which is about becoming more efficient. Becoming more efficient means that you use technology, use AI, to really find the right audiences, to have the right programs, and effectively to use less money to achieve more people and to engage with more people. And then the third part of it is about AI for innovation, where we see so many solutions that help to address social problems, economic problems, climate-changing problems. And we have examples and examples of this. So, I think most of the companies today are engaging with AI in the right way. Brazilians especially are very optimistic about it. 74% of Brazilians believe that AI is something that is for good, and we see that that can be something that will help also to bring those that are less

favored in the society by using AI. They can become professional, more empowered. What about the flip side? What does AI do to creativity? You're in a unique perspective where you can talk about that particular industry. There are valid concerns that AI would eventually replace people's jobs and also valid concerns about intellectual property, data protection. How do you think about it in the context of creativity and advertising? You know, Fab is one of my best friends, my neighbor, but I'm going to take, give you another perspective of what he said. Four years ago, my wife was celebrating her birthday in Bayer, and people in the... It was a beautiful party, you know, kaitan playing and whatever, and somebody in the press started to say that it was a slave party, slave party. What happened? It was spread in the content platforms, okay? And my wife had to renounce from her job. She had to quit her job. So we went to the public ministry, and the public ministry said, This is a

lie, but her name was all over. Then I went to f said Fabu. This Is A Lie. The public Ministry has proved so. Please take that from that. He said I can't. I can't do that. It's because of him. No, it's because of the laws of Google. But, and you don't know what happened to our family about that. We'll talk about so just a second please because he had all the time of course. My fault. My no no no. He had all the time. So what I'm saying is this. You know first of all if Google is in Brazil they need somebody that can say no this is act. It cannot be ruled from outside. Fabio is a blessing for Brazil. He's a very serious guy. But what the problem about these platforms is that all their speech and their rhetoric is very cute. All of them want to change the world. Then Bezos buys a boat of $500 million. A guy that buys a boat for $500 mil hates the world and hates the

sea right. I'm from Absolut capitalist, but there must be frameworks, that's what I'm saying. So, we'll, because for example, they are in California, yeah, they are having problems, and the governor of California is very connected to the main platforms, and then they don't want to pay press rights, content rights, all these kinds of things. So, artificial intelligence for us, for the rich, for the businessman, is fantastic, but we have to understand that they, like anybody else, my wife says that I need frameworks, so everybody should must have frameworks, and this has nothing to do with him, but it has to be to the governance of that, which I think is very... Can I bring it back to my original question, which was simply how artificial intelligence, you think, is also disrupting creativity and the way content is actually created. We've talked about the framework, of course, no, I know, but since the name of the panel is The Dilemma, I'm talking about that, right? Because they talk about the possibilities, um, of course, it's going to

be fantastic. For example, uh, I sold my agency. I had a uh, uh, advertising group, and now I have a small, huge company because of all the empowerment that these things bring to us, right? Uh, so I don't need uh to have. I had uh about 2,500 people suing me because of the labor laws in Brazil. Now I have something very small, and I'm probably one of the most profitable companies, and uh, and only with 10 people. That's fantastic, but that's also a problem. So, I'm putting myself in the same situation, right? So, of course, it's going to be, for example, for Brazilian advertising, is amazing because we never could compete on the same level as The International because we didn't have the same uh tools in the production. So, now we are, we have our local creativity, but we can produce in the global standards. Terry, let me come back to you um, yes, and uh, just bring it back to what the gentleman was talking about, having the right framework in place, and whether too much regulatory oversight can

actually stifle the industry and at the same time whether it's your perception that The Regulators have um somewhat of a a a a holistic view to the industry but in certain cases can carve out exceptions yes I think The Regulators have an old view of the industry. The industry has moved forward very quickly and we have to adjust and as I said before level the playing field but one thing that is super important it's uh piracy. Maybe nobody talks about piracy that much but piracy in Latin America is about 40% of the market which is huge and need this needs to be addressed by the governments by the companies by the public educating the public not to do it the companies to fight it and the governments to give us the framework to be able to when we detect the piracy really attacked and try to move it to the legal side let's call it and I think that's one of the most important issues that The Regulators need to to think about and to really address well Regulators are turning their SES

increasingly towards the big Tech platforms because of concerns about what happens on these platforms, the spread of disinformation, whether there's enough guard rails in place, consumer protection. I just wonder whether you think from your standpoint and from Regulators that you have dealt with whether enough is being done to protect the consumer and others, and whether the regulation is sufficient enough to keep a Level Playing Field. Well, it depends on the area, but first, let me allude back to a nance Point here. First, his wife is a lady, a great person. I cannot remove content. It's not about me. It's about so that's one of the problems, you know. It's about cannot remove hate. Allow me, allow me to okay. I will. It's about following the law. I told him to get an injunction, and then of course he will take that into consideration if that's not exactly defined a crime of hate, racist, but that was a problem for I'm sorry, but you're lying. That was a problem. My wife spent four years

trying to prove something. Excuse me, that the minister, the public ministry said and proved, and I sent to you, and it's not about you, but it's hate, is not content. You cannot put that on television, you cannot put that on the press, so you guys should not be obeyed by another kind of rules. There's the rule of law, you know what's a framework. Michael Bloomberg is a framework. He will never do something that he doesn't think that's right. So I'm sorry, I think I'm not being very kind to you, but you are not very kind at all to me, to my wife, and to the democracy. Allow me to continue what I see here, Mr. Speaking about regulation, of course, regulation is necessary. Brazil has something called MAR, which is equivalent to GDPR, which is the internet framework. It has 10 years now. It is from April, May 2013, 2014. What we see here now with the advent of AI is that there is an opportunity to work with AI for

regulation, and we see that that's something that needs to be discussed with society, with politicians, with companies, and with all the people that are using AI at the moment. I think it's important that we have that discussion. Yes, when it comes to copyright infringements, plagiarism as well, this is another aspect. You know, there are a whole bunch of potential balance that we talk about, but of course, this is one of the risks too. We have 185 agreements with media companies in Brazil to use their content, and that content, those agreements exist from the large media companies to the small ones. Also, companies that do not want to have their content published on Google, they can access, have that contact removed on Google, on YouTube. Of course, this means that we have one agreement in place. It's important to have partnerships signed. Second, it's important that we do not, I'm not speaking on behalf of the entire industry, I'm speaking here on behalf of Google and its platforms. Third, the discussion of copyright in the

AI in the AI moment. This is actually happening as we speak. We have agreements with some companies to use their content to train our models. This is something that's happening for the last year and a half. Well, Nan, you've been very articulate. Go ahead. It's good to have a disagreement between ourselves and to see that we really need boundaries in order to be able to come up with a consensus and how do we have to behave within the digital scenario. This is a typical problem that we have every day. Yeah, and this is fantastic to have it in real time. Amazing. Thank you. Amazing. This is real time. But let me bring it back because you seem pretty critical of the way the regulation is, I guess, put in place, but also the way it's executed. What is your recommendation then for what the regulator should allow? You need regulation, absolutely. Yeah, it's critical to have regulation. The problem is that it should not be a regulation done by people who don't understand what they do.

and all the amazing things that they do. That's not the point. You know, I'm just giving another perspective. Regulation should be done, especially in copyrights. For example, in Brazil, if an advertising ad is content, but we take it out from television in 24 hours, 24 hours, and we did this regulation. So, this kind of framework, because it has nothing to do with Fabu, it has to do with the Far West that became the platforms. Anybody can do anything, okay? So, there it needs a regulation. We cannot, it cannot be done on harming them in their core of their business. It's simply to have professional, modern, but at the same time, decent, and the word is responsible. That's it. So, then that raises an ethical question because the debate over here in Brazil, because recently there was an episode with the Elon Musk platform with the regulator over here, and it became a whole discussion about free speech versus censorship. So, at what

point do you draw the line between the two? Well, I don't know. I don't know what's that. What I can see is the effects. I'm not. I cannot understand clearly. That's what the great dilemma on digital and the great dilemma in democracy. We are trying to rule things that are more complicated. The harm is clear. The benefit is clear. But the collateral things that can happen in this breaches, right, in this framework, is also visible. Because never the word was more inequality divisive. You're seeing the United States. The United States is so crucial. The democracy in the United States. The election is a global election. It's important for us, you know. And so, it's. It needs necessary. It's not exactly, I think, the solution here that happened with Elon Musk. I'm not clear that it was not distorted in the heat of the discussion, right? I think it's important that it was done. I think it was fair. Need it. But we have to have a less

emotional, and as you can see, there's a lot of emotion. There is darl. Let me just ask you whether you think, uh, look, for me, it just feels like the train has left the station anyway. No matter what we do, the digital disruption is happening. The world is moving towards AI. So, given the heated discussion that we've just had now, what can the regulator do to both allow for this innovation but come back to the primary concern, which is protecting consumers? We have to have big discussions in terms of, uh, the companies, the providers, the governments in order. Where is the limit between privacy and public opinion? And that's a limit that is not very well defined, but it has to be defined. If you go to sports sometimes, which is not the case, what happened to you, obviously, for example, we show a lot of sports that we have the exclusive rights, you know, Latin America. So, a big platform was not Google, don't worry, H. We have a pirate that was broadcasting the game, which was a super

game in the Copa America. It said it was like 4 million people, so we call this huge platform. And listen, there's a pirate. We give the address, we everything we need to act. You need to disconnect it and don't allow to collect money from it. Say, Okay, it will take me about 1 hour and a half. And I said, In 1 hour and a half, the game is finished. I mean, there's nothing we can do. So, these are the things that need to be worked together. The government needs to work, the companies need to work, and to protect. And I come again with the piracy, which is one of the big issues we have in this industry as a whole. Well, to leave on a more positive note, since you mentioned sports and in the context of digital, I know that your company has also recently acquired sports rights. And I thought it was interesting because what we're seeing is this move from linear into streamers, streamers into linear, and sports is one possible area where that intersection meets, namely because it is

content that's not replicable, it's live, and once it happens, it's done. What sort of opportunity do you see there in terms of, again, the content that you're offering on your platform? Well, first, you said rights, so we acquired rights. It's important to say that because it speaks to copyright, right? We're super happy because we're able to capture an opportunity of changing consumption, media consumption. We see Brazilians watching a lot of media, be that streaming or on-demand media, on YouTube. YouTube is actually 18.5%, is the largest streaming platform that we have in the country. And we agreed in conjunction with a Broadcasting Company to acquire rights for 38 games of the Brazilian soccer championship next year. This is something that started five years ago when we started scratching the surface of showing sports when we took through agreements with the northeastern cup, and then we involved in the Poli Stone, the championship of the state of S. Why I'm saying that? Because as we have today around 75

million Brazilians that watch connected TV, the hard screen. We are now offering three ways for people to watch games, to watch soccer games. One is on their cell phones, on their computers, and finally now we're connected TV, which is a big thing. So since we saw that that mod is working for advertisers, who working for users, and it's a way for us to help to fund the ecosystem of sports in Brazil together with TV Global and with the other National TVs. We acquire the right for some games, and we think that that's going to be good for everyone. The more options we offer, and the more we have competition for rights, the better it will be for everyone. But let me make a final comment here also on a positive note for these companies. It's important to not only respect copyrights but also to respect the laws and to understand the rules of use of platforms. I've been the statutory responsible for Google in Brazil for almost 14 years, and of course, this is an area where I see an

opportunity for everyone to get educated around the matter. It's a na moment, and emerging technologies require people to discuss, they require dialogue. What happened in that situation that you were alluding to before was that there was not enough dialogue, and there was not a legal statutory responsible named in Brazil, and companies cannot operate in a market without having that type of professional appointed here. So, I think we are in the middle of a process that should not be so inflammatory, that should be a process where people will sit at the table, negotiate, talk, listen, understand each other, understand the limits and the boundaries of what is possible, and then we come up with a solution that may be the best possible. Exactly why we're having this dialogue now, gentlemen. Thank you so much. Thank you very much.

The Digital Dilemma: Connecting More People, AI, New Rules

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The Digital Dilemma: Connecting More People, AI, New Rules

The Digital Dilemma: Connecting More People, AI, New Rules

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