ANNOUNCER: THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: WELCOME TO A SPECIAL EDITION OF BLOOMBERG TECHNOLOGY LIVE FROM BLOOMBERG SCREEN TIME IN L.A. ED: TODAY WE WILL BE SPEAKING WITH CELEBRITIES, ENTREPRENEURS, AND MOGULS ACROSS A CHANGING MEDIA LANDSCAPE. WE START WITH THE MANAGING EDITOR WHO LEADS SCREEN TIME. CAROLINE: OUR CELEBRITY. ED: SCREEN TIME IS THE COVERAGE OF POPULAR CULTURE, A GLOBAL INDUSTRY. IT KICKED OFF WITH MICRO PINOT, LIVE NATION. IT IS PEERLESS. CONCERTS IS ONE FACET OF BUSINESS AROUND THE WORLD. ENGAGED CONVERSATION, A CEO REFLECTING THE HONESTY.

HE HAS NO PEERS. HE SERVES AS A FOUNDER. THEY ARE MORE CANDID INTERVIEWS BECAUSE THEY DON'T CARE. THEY HAVE LESS PEOPLE TO ANSWER TO. THEY ARE THE BIGGEST CONCERT PROMOTER IN THE WORLD BY A WIDE MILE. THEY ARE THE BIGGEST TICKET SELLER. HE HAS RELATIONSHIPS WITH EVERY ARTIST. THEY CALL HIM. HE CAN POKE FUN AT THE GOVERNMENT WHICH IS SUING HIM RIGHT NOW, IN A WAY THAT OTHER CEOS CANNOT. CAROLINE: YOU CAN POKE THE BEAR BUT THE BEAR WANTS TO SPLIT THIS UP. LUCAS: I ASKED HIM IF HE WOULD SELL TICKETMASTER WHICH IS SOMETHING THE DOJ WOULD LIKE HIM TO DO. THIS STARTED WITH A MERGER MANY YEARS AGO. TICKETMASTER IS THE BIGGEST

PAIN FOR HIM. THAT IS WHEN FANS GET MAD. THE COMPANY IS CONFIDENT THEY WILL WIN THIS BECAUSE THEY DON'T THINK THE DOJ UNDERSTANDS THE BUSINESS. THEY ARE HOPING THE PEOPLE IN CHARGE WILL BE DIFFERENT BY THE TIME THIS IS DONE. ED: MEDIA AND ENTERTAINMENT, A COMPANY IN THE HEADLINES BECAUSE OF TAYLOR SWIFT, OASIS. THEY HAVE TWO PARTS OF THE BUSINESS. TICKETING AND PROMOTION. LUCAS: LIVE NATION IS A PROMOTER. THEY ARE IN CHARGE OF PUTTING ON A SHOW. YOU MAKE VERY LITTLE MONEY BECAUSE THE ARTIST KEEPS ALMOST ALL THE TICKET SALES -- THE ARTIST KEEPS ALL THE TICKET SALES. THEY CAN MAKE MONEY FROM MERCHANDISE. TICKET SELLERS DON'T MAKE VERY MUCH MONEY FROM TICKETS.

THEY MAKE THEIR MONEY FROM FEES. CONCERT PROMOTION IS A LOW MARGIN BUSINESS. TICKET SELLING IS A BETTER BUSINESS. ADD IN MARKETING, THAT IS WHERE THEY MAKE THEIR MONEY. THE PROMOTION IS THE MEAT OF THE BUSINESS. THE WHOLE PACKAGE WORKS WELL BUT IT IS SOMETHING SOME PEOPLE THINK IS UNFAIR. CAROLINE: PUSH US FORWARD. IN L.A., IT WILL GET FIERCELY HOT AND CROWDED HERE. MANY OTHERS ARE HERE FROM THE INDUSTRY. LUCAS: SCOOTER DOESN'T DO MANY INTERVIEWS. HE'S HAD A TUMULTUOUS COUPLE OF YEARS. JUSTIN BIEBER, E THERE WERE REPORTS, I'M EXCITED TO TALK ABOUT THAT AND ON DISCOVERING TALENT. CAROLINE:

SO MANY GREAT CONVERSATIONS COMING UP. CANNOT WAIT FOR THE CONVERSATION AROUND SOUTH PARK. LET'S LISTEN TO A LITTLE OF THE CONVERSATION YESTERDAY WITH THE CEO OF LIVE NATION, WHO SAYS THEY WANT RETAIL PRICES TO BE CAPPED. >> WHEN YOU HAVE 10 MILLION PEOPLE TRYING TO BUY ONE BILLION OASIS TICKETS, THERE'S NO ONE WAY TO TELL PASSIONATE FANS, SORRY. THE STORE IS CLOSED. THAT CREATES TENSION. THEY GO ONLINE. THEY SEE 10 PAGES OF SECONDARY TICKETS. THEY GET THIS OFF. >> IF YOU HAD A MAGIC WAND AND YOU COULD CHANGE TICKETING HOWEVER YOU WANTED, WHAT WOULD YOU DO? MICHAEL: GREAT QUESTION. PROFESSIONAL BOTS ALL AROUND THE WORLD. GOT HIT BY MULTIBILLION OF BOTS ON OASIS.

PROFESSIONAL $12 BILLION BUSINESS TRYING TO CAPTURE ALL THOSE SEATS. IT'S AN ARMS RACE TRYING TO STOP THEM. YOU SHOULD NOT HAVE A MIDDLEMAN THAT HAS NOTHING INVESTED IN THE BUSINESS MAKE ANY MONEY FROM IT. WE WOULD LOVE IT REGULATED. CAP IT AT 20%. SOME PEOPLE COULD MAKE MONEY. THAT'S THE BIGGEST TENSION. ED: THE LIVE NATION CEO REFRESHINGLY HONEST WITH LUCAS SHAW. MANY MORE CONVERSATIONS LIKE THAT THROUGHOUT THE DAY. WE WILL TALK VIDEO GENERATION IN THE CONTEXT OF AI AND MORE WITH THE RUNWAY CEO. THAT'S COMING UP NEXT. THIS IS BLOOMBERG TECHNOLOGY ON THE ROAD. ED: RUNWAY IS USING AI TO REVOLUTIONIZE THE ENTERTAINMENT INDUSTRY TEAMING UP WITH LIONS GATE STUDIOS TO BUILD AI

MODELS, NOW BACKING TO PRODUCE DOZENS OF FILMS. THE CEO JOINS US. THAT DEAL. HOW REAL IS IT, THE PROCESS AND PRODUCTION OF MAKING A FILM IN PARTNERSHIP USING YOUR TECH? CRISTOBAL: FIRST OF ITS KIND. THE IDEA IS TO TAKE IT FURTHER WITH TECH. WE WANT TO MAKE SURE WE HELP CREATE, SO STUDIOS UNDERSTAND HOW TO USE IT IN THE BEST WAY POSSIBLE. TRYING TO BRIDGE THE GAP BETWEEN AI AND HOLLYWOOD AND BRING THIS TECHNOLOGY IN MORE ACCESSIBLE WAYS. ED: I LOVE THE DETAIL. FILMMAKER SITTING AT A COMPUTER USING YOUR SOFTWARE? CRISTOBAL: THERE ARE MANY TASKS IN THE DEVELOPMENT OF A MOVIE WHERE YOU CAN EMBED AI AND MAKE IT CHEAPER AND FASTER. STORYBOARDING, PREVIS, EFFECTS, YOU CAN USE OUR

MODELS IN WAYS THAT ARE USEFUL FOR THEM. THAT'S A KEY ASPECT OF IT. FOR A LONG TIME, IT HAS BEEN SEEN AS A SYSTEM THAT CREATES MOVIES ON ITS OWN. IT'S NOT LIKE THAT. IT'S A TOOL FOR DIRECTORS AND FILMMAKERS. THEY CAN TAKE THAT FURTHER AND IT BECOMES A COST-EFFECTIVE TOOL TO USE. YOU ARE SPENDING HUNDREDS OF DOLLARS MAKING A SHOT, ADDITIONAL EFFECTS. YOU CAN NOW USE RUNWAY TO REDUCE THE COST, TO GET BETTER RESULTS. CAROLINE: YOU HAVE BEEN IMPROVING MODELS. HOW COSTLY DOES THAT REMAIN? CRISTOBAL: THERE IS RESEARCH THAT HAS TO BE DONE TO TRAIN THE MODELS, BUT RUNNING AND USING THEM HAS BECOME MORE COST-EFFECTIVE OVER TIME. WE ARE NOT YET AT THE POINT

WHERE YOU SEE -- WE WILL OPTIMIZE MODELS EVEN MORE. THE COST WILL BE EVEN CHEAPER AND FASTER. CAROLINE: AS YOU ARE BUILDING YOUR OFFERING, YOU ARE WINNING OVER NEW CLIENTS LIKE LIONS GATE. LAST YEAR, WE THINK ABOUT HOLLYWOOD IN STRIKE MODE IN LARGE PART BECAUSE OF AI. WHAT CONVERSATIONS HAVE YOU HAD TO HAVE TO GET PEOPLE COMFORTABLE WITH THIS? CRISTOBAL: HOLLYWOOD IS THE HISTORY OF TECH. WE ARE HERE BECAUSE OF TECHNOLOGICAL BREAKTHROUGHS. THEY ALWAYS COME TOGETHER. LET'S DEFINE THE TECH. IT'S A TOOL FOR HUMANS. THAT CHANGES THE NARRATIVE. IT'S LESS ABOUT THEORY, MORE ABOUT EMBRACING IT. YOU REALIZE HOW YOU CAN USE IT. WE NEED TO EDUCATE MORE AND SHOW THE POTENTIAL.

THERE ARE CHALLENGES. IT'S NOT PERFECT. THERE ARE THINGS THAT ARE NOT EXACTLY WORKING AS THEY SHOULD, BUT THAT'S KIND OF THE POINT. AS YOU IMPROVE THEM AND MAKE IT BETTER. PART OF IT IS SHOWING MORE PEOPLE, PRODUCERS, STUDIO WITH THE POTENTIAL. ED: WE USE TEXT TO VIDEO TOOLS EVERYDAY. I LOVE TECH. I ALSO LOVE FILM. THERE COMES A POINT WHERE I WANT TO ASK IF AI REALLY CAN GIVE THE SAME FEELING? CREATE FILM AND MOVIE AND CONTENT THAT IS AS AUTHENTIC AS THE GREAT FILMMAKERS CAN MAKE IT WITH THEIR HANDS AND EYES AND CAMERA? WHAT DO THINK ABOUT THAT? CRISTOBAL: FILMMAKING AND STORIES ARE NEVER REALLY ABOUT THE TECH. THEY ARE ABOUT CONVEYING EMOTION AND CONNECTING WITH THE

VIEWER. YOU NEVER WATCH A MOVIE BECAUSE OF HOW IT WAS MADE. ED: UNLESS YOU ARE A NERD LIKE ME. CRISTOBAL: BUT IF YOU LIKED THE MOVIE, YOU GO DEEPER INTO HOW IT WAS MADE. 99% OF PEOPLE GO TO A MOVIE BECAUSE THEY CONNECT WITH IT. AI CAN HELP YOU CONNECT WITH YOUR AUDIENCE, CAN HELP YOU DELIVER THE MESSAGE. WE ARE FASCINATED BY THE TECH ITSELF. IT'S FASCINATING, REVOLUTIONARY. IT'S CHANGING THE GAME. IT'S NEW AND EXCITING. SAME TIME, IF YOU WANT TO FOCUS ON ART, IT'S IMPORTANT WE SWITCH THE NARRATIVE TO STORYTELLING AND PEOPLE AND HOW THEY USE IT AND CONVEY STORIES WITH THE TECH, LESS ABOUT WHICH TECH WAS USED BEHIND THE SCENES. CAROLINE:

YOU'VE BEEN TELLING STORIES TO RAISE MONEY. YOU HAVE INTERESTING INVESTORS. NOT MANY OF THEM WILL BE IN THE WORLD OF ART AND CREATION. NVIDIA, SALESFORCE. WHAT DO THEY WANT FROM YOU? WHY DO YOU HAVE THESE STRATEGIC INVESTORS? WHAT DO THEY EARN YOU? CRISTOBAL: THEY ARE TELLING STORIES AND THEIR USERS ARE TELLING STORIES. YOU CAN THINK ABOUT STORYTELLING IS HOLLYWOOD, MEDIA, FILMS. THINK ABOUT COMPANIES. THEY ARE TELLING STORIES WHEN ADVERTISING, MARKETING AND COMMUNICATING WITH USERS. IF YOU CAN HELP THEM DELIVER BETTER MESSAGES, THAT'S A FORM OF STORYTELLING. WE WANT TO MAKE SURE WE CAN WORK WITH COMPANIES LIKE THAT. ED: FOR AT LEAST A YEAR, I HAVE BEEN HEARING ABOUT RUNWAY AND

YOUR NAME COMES UP A LOT. OPENAI, WE TALKED ABOUT META'S NEW TOOL. YOU HAVE A SINGULAR FOCUS. WHERE DO YOU THINK YOU STAND IN YOUR COMPETENCE AND AS A BUSINESS RELATIVE TO THAT COMPETITION? CRISTOBAL: WHEN WE STARTED SEVEN YEARS AGO, THERE WAS A NEW FIELD. WE HAVE PROVEN OVER TIME IT'S EXCITING. IT'S AN INDUSTRY THAT IS GROWING AND CHANGING. WHEN YOU CREATE A MARKET AND GOOD OPPORTUNITY, YOU WILL HAVE COMPETITION. IT'S UNREAL TO THINK NO ONE ELSE WILL TRY TO BUILD. WE ARE ON THE LONG-TERM HORIZON. EVERYTHING WE ARE BUILDING IS NOT ABOUT TODAY. IT'S ABOUT EVERYTHING ELSE WE CAN BUILD FOR STORYTELLERS OVER THE WORLD. NVIDIA IS A STEPPINGSTONE. VIDEO, AUDIO, 3D, IT'S A

COLLECTIVE SET OF TOOLS. ED: WILL YOU RAISE MORE MONEY? CRISTOBAL: WE WILL DO WHATEVER WE HAVE TO DO. ED: OH COME ON. YOU WILL HAVE TO. CRISTOBAL: WE HAVE BEEN RAISING EVERY YEAR SINCE WE STARTED. CAROLINE: IPO? CRISTOBAL: WE FOCUS ON BUILDING NOW. CAROLINE: [LAUGHTER] ONE OF THOSE THINGS. WHAT A JOY LIVE FROM L.A. HE IS NEW YORK-BASED. COMING UP, LAURA MARTIN. ED: UNBELIEVABLE. CAROLINE: SHE WILL BE HERE SITTING NEXT TO US TO TALK ABOUT THE STATE OF SHOW BUSINESS ACROSS ENTERTAINMENT AND STREAMING. ♪ CAROLINE: WE'VE GIVEN YOU THE FOUNDER TAKE FROM L.A. LET'S GET THE ANALYST TAKE ON THE FUTURE OF ENTERTAINMENT, THE INTERTWINING OF GENAI AND

STREAMING. LAURA MARTIN, SO EXCITED TO MEET YOU IN THE FLESH. >> AFTER ALL THIS TIME, LOVELY TO BE HERE. CAROLINE: YOU WERE JUST HERE LISTENING ABOUT THE RUNWAY DEAL. FOR YOU, HOW MUCH IS GENAI CHANGING THE GAME? LAURA: A LOT. I SEE IT MOST IN MY TECH-FIRST COMPANIES. CONTENT STORYTELLING COMPANIES WILL BE SLOWER. CONSUMERS WATCH MOVIES BECAUSE OF STORYTELLING. GENAI OPENS UP CREATIVE WINDOWS. ED: YOU COVER PUBLIC EQUITIES. SOME OF THE MEDIA AND ENTERTAINMENT NAMES. LAURA: WE DON'T KNOW HOW MUCH IT'S GOING TO AFFECT HOLLYWOOD. UNDER THE STRIKES, THEY PROHIBITED THE USE OF AI FOR THREE YEARS OF THEIR DEALS. IT WON'T AFFECT THE BIG STUDIOS.

QUICKLY. RUNWAY WILL BE IMPORTANT TO THE FUTURE OF ENTERTAINMENT. CAROLINE: TO THE FUTURE OF HIRING? HOW MUCH OF THIS IS A PROFIT GENERATOR? LAURA: SINCE WE ARE SITTING IN HOLLYWOOD, I WILL BE RESPECTFUL AND SAY I THINK WHAT IT DOES FIRST IS OPEN UP NEW AREAS OF CREATIVITY. JUST LIKE ANIMATION. THAT'S WHAT GENAI DOES OVERTIME. WHAT I'M HEARING FROM COMPANIES IN THE TECH WORLD ADOPTING GENAI IS THEY THINK THEY CAN CUT COSTS WHERE IT APPLIES BY 30%. ED: THE PLAYERS ARE DIFFERENT. INTERESTING TO BE HERE WITH CAROLINE FOR 24 HOURS GOING TO THE STUDIOS, TO DRIVE PAST WARNER BROS., BEYOND THE DISNEY LOT. ACTUALLY LEARN THE HISTORY AND

CONSIDER THE MONEY DEPLOYED TO TRY AND EITHER CATCH UP WITH NETFLIX OR TRY AND DO SOMETHING DIFFERENT. FANTASTIC CONVERSATION WITH AMAZON LAST NIGHT. YOU COVER THOSE NAMES. WHICH IS AHEAD? LAURA: TALKING ABOUT WINNERS? ED: VIDEO AND ENTERTAINMENT. LAURA: YOUTUBE. DONE. AMAZON IS NEXT. THEY ARE ON THE PROP. ED: YOUTUBE? THAT'S DEFINITIVE. LAURA: IT'S MY POINT OF VIEW. 10% OF TOTAL STREAMING VIEWING AND NETFLIX IS NEXT AT 7.5%. YOUTUBE DID THE NFL DEAL AND USER GENERATED CONTENT ON PHONES AND TV. ED: YOU CAN BE A BIT MORE ROMANTIC THAN THAT. LAURA: [LAUGHTER] ED: I AM A RINGS OF POWER NERD. I WAS TRYING TO GET CAROLINE INTO THAT.

I FIND YOUTUBE INTERESTING, BUT I DON'T GO THERE TO WATCH THE CONTENT I AM PASSIONATE ABOUT. CAROLINE: BRINGING ORIGINALS, AT THE MOMENT IT IS USER-GENERATED. AMAZON IS DOING ORIGINALS, MOVIEMAKING, LIVE SPORTS. WHAT WILL YOUTUBE OFFER US? LAURA: REMEMBER WHEN SURVIVOR LAUNCHED? THE ORIGINAL REALITY PROGRAM. PEOPLE SAID THIS IS TRASH. PEOPLE WHO WATCH YOUTUBE THINK IT IS PREMIUM. YOU MAY NOT, BUT IT REACHES GLOBAL AUDIENCES. CAROLINE: WE ARE ON YOUTUBE. ED: I BELIEVE IN YOU TOO, BUT I'M JUST TALKING ABOUT IN THE EVENING WHEN YOU GO HOME AFTER WORK AND YOU WANT TO WATCH TV. I'M NOT GOING TO YOUTUBE. LAURA: ANECDOTAL. NOT STATISTICS.

STATISTICS SUGGEST 85% OF CONSUMERS THAT WATCH VIDEO ARE ON YOUTUBE WEEKLY. THE DATA IS COMPELLING. CAROLINE: YOU MENTIONED SURVIVOR. I'M HAVING A CONVERSATION LATER WITH UNSCRIPTED EXECUTIVES FOR PEACOCK AND THAT'S ALL ABOUT LOVE ISLAND AND TRADERS. WHAT THEN OF THE PARAMOUNT'S, THE PEACOCKS, THE NOT BIG NAMES? LAURA: WE NEED TO THINK ABOUT THE JOB TO BE DONE. CONSUMERS GLOBALLY. SOME WILL SIT THROUGH TO OUR MOVIES OR ONE HOUR DRAMAS OR 30 MINUTES IT COMES. THEY WILL SIT THROUGH 15 SECOND TIKTOK VIDEOS OR 32ND YOUTUBE VIDEOS. ALL THIS CONTENT IS BETTER FOR CONSUMERS. IT GIVES THEM MORE CHOICE. ED: LET'S BRING THIS BACK TO

BUSINESS. IF YOU ARE AN INVESTOR, HOW DO YOU JUDGE NETFLIX, DISNEY AND RANK THEM? THE SUBSCRIBER NUMBER? HOW CLOSELY ARE WE PAYING ATTENTION TO THOSE BIG FIGURE DOLLAR FIGURES AND SPENDING ON CONTENT? LAURA: WHAT THE MARKET CARES ABOUT TODAY IS R.O.I. ON INVESTED CAPITAL INCLUDING CONTENT CAPITAL. NETFLIX IS THE ONLY ONE MAKING MONEY. WALL STREET CARES ABOUT THAT. DISNEY HAS MOVED INTO PROFITABILITY. THEY ARE SWITCHING ON THE ADS AND LOWERING THEIR COSTS. DISNEY IS NOT PURE PLAY. THE PARK MARGINS IS JUST AS IMPORTANT AS THE STREAMING. THEY HAVE LINEAR TV. ESPN IS SUPER IMPORTANT. NBA RIGHT STUMBLING ON THE FEES. ED: I FIND THE JOB, YOUR JOB INTERESTING. THERE IS SOMETHING YOU CANNOT MODEL FOR.

THE PSYCHOLOGY OF A CONSUMER. WHEN I WAS A CHILD, I WATCHED ADS ON TV AND IT WAS NORMAL. THERE WAS A TIME DURING THE PANDEMIC WHERE THERE WERE NO ADS. SUDDENLY EVERYONE STARTED DOING IT. THERE WAS A REVOLT. IT SEEMS LIKE IT'S WORKING. LAURA: YEAH. CONSUMER HAS TO JUDGE HIS TIME AS A VALUABLE ASSET. IT'S FREE WITH ADS OR -- THE STREAMERS HAVE MUCH LOWER ADD LOADS. FOUR MINUTES, FIVE MINUTES. CABLE TV WAS LIKE 14 MINUTES. LOWER PRICE IN A WAY FOR AN HOUR OF CONTENT. I LIKE THE INNOVATIONS WHERE THEY SHOW YOU A VIDEO AND THEN YOU GET THE NEXT PROGRAM FOR FREE. LOVE THAT. YOU GET GOOD ATTENTION TO THE AD AND HALF AN HOUR OF FREE CONTENT. THAT'S A GREAT BUSINESS MODEL. CAROLINE:

WE WERE TALKING ABOUT M&A OUT OF NECESSITY COMING IN CABLE TV LAND. WHERE IS THE M&A GOING TO SWITCH ON FOR CONTENT PROVIDERS? WE'VE BEEN TALKING ABOUT IT FOR YEARS! LAURA: YOU NEED A DIFFERENT PRESIDENT. THE FCC, FTC, AND DOJ ARE APPOINTED BY THE PERSON, THE PARTY ESSENTIALLY IN THE WHITE HOUSE. UNDER DEMOCRATS, M&A IS HARD. THEY BELIEVE IT'S BAD. THESE COMPANIES THAT NEED TO MERGE AND CUT COSTS -- THEY CANNOT AS LONG AS THERE IS A DEMOCRATIC ADMINISTRATION IN THE WHITE HOUSE. ED: LAURA MARTIN, FANTASTIC TO DO THIS IN PERSON. YOU HAVE BEEN ON BLOOMBERG TECHNOLOGY SO MANY TIMES. CAROLINE: KEEP COMING BACK PLEASE. ED: THIS IS BLOOMBERG TECHNOLOGY ON THE ROAD IN HOLLYWOOD AT

BLOOMBERG SCREEN TIME, COVERAGE OF POPULAR CULTURE. CAROLINE: TALKING MUSIC, STREAMING, MOVIEMAKING, PODCASTING. IT'S ALL COMING UP. ED: DO NOT FORGET VIDEO GAMES. THERE IS SOMETHING COMING LATER IN THE PROGRAM FOR VIDEOGAMES. IT'S IMPORTANT. DOLLAR FOR DOLLAR, THIS COMPARABLE AND IMPORTANT. WE ARE HAVING FUN HERE. WE WILL BE RIGHT BACK. CAROLINE: WELCOME BACK TO A SPECIAL EDITION OF BLOOMBERG TECHNOLOGY LIVE FROM ROOM BIRD SCREEN TIME -- LIVE FROM BLOOMBERG SCREEN TIME IN HOLLYWOOD. CONTENT CREATION, STREAMING. AMAZON ADDING APPLE TV+ TO ITS CHANNELS IN THE U.S. TED LASSO, SLOW HORSES AND THE VIDEO SUPERMARKET FOR THE FIRST TIME. I CHATTED WITH THE HEAD OF AMAZON STUDIOS LAST NIGHT.

>> WE'VE TRIED TO BECOME THE FIRST STOP ENTERTAINMENT HUB FOR CONSUMERS AROUND THE WORLD. WE HAVE THE PRIME CONTENT, INCLUDING THURSDAY NIGHT FOOTBALL, OUR FOURTH GAME OF THE SEASON TOMORROW NIGHT, NBA NEXT YEAR, NASCAR, CHAMPIONS LEAGUE THROUGHOUT EUROPE, A VARIETY OF SPORTS. WE ALSO OFFER THE WORLD'S LARGEST STORE. ON TOP OF THAT, WE HAVE 100 PARTNER STREAMING SERVICES YOU CAN SUBSCRIBE TO INSIDE OUR APP. THINK ABOUT THE NUMBER OF SUBSCRIPTIONS YOU HAVE. IT'S HARD TO KEEP TRACK OF IT ALL. YOU ARE NOT SURE WHERE THAT SHOW OR MOVIE MIGHT BE. AS PEOPLE REALIZE THEY CAN SUBSCRIBE TO MAX OR PARAMOUNT+, ETC. INSIDE PRIME VIDEO, WE SEE MORE ENGAGEMENT. WE ARE ABLE TO GET SUBSCRIBERS

FOR THOSE BUSINESSES AT A REAL ATTRACTIVE RATE. IT'S AN EXCITING PART OF THE BUSINESS. WE WILL ANNOUNCE TONIGHT, APPLE TV+ WILL BE ADDED TO OUR PRIME VIDEO CHANNELS. CAROLINE: WHY APPLE TV+? >> THEY HAVE GREAT PROGRAMMING. WE HAVE A GOOD PARTNERSHIP WITH APPLE. OUR COMPANIES DO BUSINESS TOGETHER. I WANT TO THANK ANDY, HE AND HIS TEAM HAVE DONE A GREAT JOB WITH THE DEAL. WE ARE EXCITED TO GET GOING. ED: MICHAEL HOPKINS, HEAD OF AMAZON PRIME VIDEO AND AMAZON MGM STUDIOS. SHOUT OUT TO EDDIE Q. IN OUR WORLD, THAT'S NEWS. ANOTHER PLAYER IS PULLING IN MILLIONS OF VIEWERS WITHOUT CHARGING THEM A THING. IN THE U.S., 81 MILLION PEOPLE STREAM CONTENT EVERY MONTH ON

TUBI, THE FREE AD-SUPPORTED PLATFORM OWNED BY FOX. IT IS LAUNCHING ACROSS THE U.K. THIS SUMMER, OUR ORIGINAL HOME. IT'S GREAT TO SEE YOU. THE U.K. IS INTERESTING. EXPLAIN THE BASICS. WHY? WHAT'S GOING TO HAPPEN? >> WE'VE BEEN GETTING INCREDIBLE TRACTION IN THE U.S.. WHERE THE MOST-WATCHED FREE TV SERVICE IN THE U.S. NOW. AUDIENCES, CORD CUTTERS, THEY WANT TO WATCH CONTENT FOR FREE. THEY DON'T MIND ADS IN RETURN. THEY WANT A LARGE COLLECTION. ED: CORD CUTTER AND CORD NEVERS. CAROLINE: LIKE GEN ALPHA, GEN Z. ANJALI: IT'S NOT LIKE THEY STOPPED SUBSCRIBING TO CABLE, THEY JUST NEVER DID TO BEGIN WITH. TUBI HAS AN INCREDIBLE FORMULA. IT'S RESONATING WITH AUDIENCES.

WE BELIEVE WE CAN BRING THAT VALUE PROP TO U.K. AUDIENCES. WE'VE DONE THE SAME IN CANADA AND LATIN AMERICA. IT'S A GLOBAL OPPORTUNITY. THAT'S WHAT WE ARE LOOKING TO PURSUE. CAROLINE: HOW DOES THE CONTENT GET INVOLVED? DO YOU HAVE ORIGINALS MADE BY THE U.K. FOR THE U.K. AUDIENCE OR ARE THEY GLOBAL DEMAND STREAMING? ANJALI: TUBI HAS DONE SEVERAL THINGS. WE LICENSE AND ACQUIRE CONTENT FROM EVERYONE. WE HAVE A VAST SELECTION OF OPPORTUNITIES AND SHOWS. WE HAVE INVESTED IN ORIGINALS. WE HAVE HUNDREDS ORIGINALS. 1-4 TUBI VIEWERS IN THE U.S. WATCHES AN ORIGINAL. CAROLINE: ONE OF YOURS? ANJALI: WHAT'S INTERESTING ABOUT THEM IS THEY DON'T TEND TO BE BIG-BUDGET ORIGINALS YOU MIGHT

SEE ON OTHER STREAMERS. WE OFTEN LISTEN TO WHAT'S RESONATING ON OUR PLATFORM, WHAT OUR FANS LOVE, THEN WE WILL LOOK TO ACQUIRE AND PRODUCE CONTENT THAT REFLECTS SOMETHING THEY CANNOT FIND ANYWHERE ELSE. ED: WE SHOULD TALK ABOUT THE FOX ELEMENT. A LOT OF PEOPLE ARE SURPRISED. WE WERE PARTLY. HOW DOES THAT WORK? I'M ASSUMING UNDERPINNING THAT IS IF IT IS FREE FOR THE CONSUMER, IT IS ADVERTISING? ANJALI: WE ONLY MAKE MONEY THROUGH ADVERTISING, WHICH WE THINK ALIGNS INCENTIVES. WE ONLY MAKE MONEY IF VIEWERS ARE ACTUALLY WATCHING. TUBI WAS ACQUIRED BY FOX SEVERAL YEARS AGO. IT STARTED IN SILICON VALLEY 10 YEARS AGO. IT STARTED AS AN AD TEXT STARTUP AND PIVOTED TO BE A CONSUMER STREAMING SERVICE.

OUR DNA IS RICH IN USING TECH AND DATA TO PERSONALIZE AND OFFER DELIGHTFUL EXPERIENCES. IT IS SOMETHING I AM IMPRESSED BY. IT'S A DIFFERENTIATOR. AUDIENCES DON'T WANT BARRIERS OR FRICTION. THEY WANT TV TO FEEL FUN AGAIN. ED: YOU RAISE A GOOD POINT ON THE TECH. IN OUR HOUSEHOLD, I HAVE A ROKU TV AND A SAMSUNG SMART TV. ON THE ROKU, IT IS APPLICATION BASED. ON THE SMART TV I SEARCH FOR A SHOW AND IT MIGHT TELL ME THE ONLY PLACE I CAN FIND IT IS TUBI BUT MY GOODNESS HAVE I GOT OPTIONS. I WILL BE HONEST, MY WIFE SAID THE OTHER DAY I DIDN'T KNOW WE HAD TUBI. AND I SAID NEITHER DID I. YOU MUST KINDA RECOGNIZE THAT A LITTLE? ANJALI:

THERE'S A PARADOX OF CHOICE. IN THE STREAMING ECOSYSTEM, WE HAVEN'T MADE IT AS EASY FOR VIEWERS AS WE NEED TO. OUR APPROACH IS TO BE UBIQUITOUS. WE ARE PRESENT AND AVAILABLE AND ASSESSABLE TO CONSUMERS ACROSS OVER 30 DEVICES, EVERY SCREEN WE CAN BE ON. HAVING THAT LARGE LIBRARY MEANS WE ARE OFTEN DISCOVERABLE BECAUSE WE OTHER PLACE YOU CAN WATCH CONTENT YOU ARE LOOKING FOR FOR FREE. YOU WILL SEE US CONTINUE TO DO MORE TO REMOVE BARRIERS AND MAKE THAT EXPERIENCE EASIER. CAROLINE: YOUR MARKET SHARE KEEPS GOING UP? 1.8% OF THE MARKET IS YOURS. YOU ARE ONLY JUST BEHIND HULU. ANJALI: WE ARE FOCUSED ON PLAYING ONE GAME ONLY. THAT'S BEING FREE, FRICTIONLESS.

ENTERTAINMENT FOR CONSUMERS. WE ARE DOUBLING DOWN ON THE STRATEGY. WE BELIEVE IT'S WORKING. THE TAILWINDS ARE IN OUR FAVOR. IT'S ON US TO DELIVER. ED: WHERE DOES LIVE SPORTS FIT IN? ANJALI: WE ARE NOT INVESTING IN PREMIUM LIVE SPORTS RIGHTS. IT'S EXPENSIVE. THAT WOULD NOT WORK ON A FREE AD SUPPORTED MODEL. WHAT YOU WILL SEE US DO IS PARTNER WITH FOX SPORTS TO TELL STORIES IN AND AROUND THE CULTURE OF SPORTS. THIS WEEK, WE ANNOUNCED A TALK SHOW WITH DEION SANDERS, COACH PRIME. YOU WILL SEE US TO A PURPLE CARPET PREGAME SHOW BEFORE THE SUPER BOWL THIS YEAR THAT TALKS ABOUT FASHION AND CELEBRITY CULTURE AROUND THE GAME. WE WILL CONTINUE TO EXPERIMENT.

WHAT WE SEE AMONG YOUNGER VIEWERS, GEN Z, THEY ARE INTERESTED IN STORIES AND CULTURE AROUND SPORTS ALMOST AS MUCH AS THE GAME ITSELF. CAROLINE: DO YOU WANT AN OSCAR? ANJALI: I WANT TO PRODUCE CONTENT THAT DELIGHTS VIEWERS. WE CARE A LOT MORE ABOUT THAT. ENGAGEMENT IS CURRENCY. CAROLINE: OK. ANJALI, SO NICE TO HAVE TIME WITH YOU. COMING UP, YOUR FAVORITE, THE GAMING INDUSTRY. THE COFOUNDER OF BLIZZARD ENTERTAINMENT. HE'S NOW LEADING HIS OWN GAME DEVELOPERS STARTUP WITH NEW CONTENT COMING. ED: IT WAS A BIG PART OF MY CHILDHOOD, HIS WORK. I'M EXCITED. LAST NIGHT SNOOP DOGG SAT DOWN TO DISCUSS HIS NEW ALBUM.

CAROLINE: MY CHILDHOOD. ED: HIS EXPERIENCE AT THE OLYMPICS OVER THE SUMMER, CHECK THIS OUT. >> NBC WAS WILLING TO ALLOW US TO BRING OUR FLAVOR TO THE TABLE AND NOT TRY AND KEEP US DEFENSE TECH INDUSTRY, LIVE FROM ROCKET LABS. DON'T MISS IT. THIS IS BLOOMBERG. ED: BLIZZARD COFOUNDER, INDUSTRY VETERAN, MIKE MORHEIMES WORKING TO REPLICATE THE VIDEOGAME CEO SUCCESS BUT WITHOUT MAKING THE MISTAKES THAT HAVE IMPACTED THE COMPANY'S REPUTATION IN RECENT YEARS AND IN PARTICULAR THE CULTURE. HIS NEW COMPANY IS DREAMHAVEN ANNOUNCING A NEW TITLE TODAY. IT HAS NOT SAID MUCH SINCE STARTING IN 2020 AND I'M DELIGHTED TO SAY MIKE IS HERE IN PERSON.

THE BACK STORY OF BLIZZARD. WE CAN GO INTO HOW FOR MANY PEOPLE WATCHING THIS AROUND THE WORLD, SOME OF THE ORIGINAL TITLES, I AM A CHILD OF THE 1990'S, WAS A BIG PART OF THEIR VIDEOGAME HISTORY. YOU HAVE A TITLE OUT NOW. IT'S THE BIG MOMENT FOR YOUR STUDIO, WHICH YOU FOUNDED IN 2020. THE BASICS OF THE GAME AND WHY IT'S IMPORTANT? WHY IT WILL STAND OUT. MIKE: THIS IS A BIG MOMENT FOR US. WE HAVE BEEN WORKING ON TWO GAMES INTERNALLY. SECRET DOOR JUST ANNOUNCED THEIR FIRST GAME. SUNDERFOLK, A COUCH CO-OP TACTICAL RPG ADVENTURE, BUT YOU COMPLAIN WITH YOUR FRIENDS, INSPIRED BY THE MAGIC OF TABLETOP GAMING. ED: THIS IS A 2025 THING? MIKE: WE JUST REVEALED WHAT WE'VE

BEEN WORKING ON. WE ARE SUPER EXCITED. SOME OF THE UNIQUE THINGS ABOUT THIS GAME. THAT USES TWO SCREENS. A PERSONAL SCREEN, YOUR PHONE IN YOUR POCKET AND SHARED SCREEN. WE ARE TRYING TO REPLICATE THE MAGIC OF TABLETOP AND RPG ADVENTURE GAMING WITHOUT SOME OF THE BARRIERS THAT MAKE IT INACCESSIBLE TO PEOPLE. THE THICK MANUALS. SET UP TIME. SOME OF THESE GAMES, YOU HAVE TO SPEND ONE HOUR LEARNING THE RULES TO TEACH YOUR FRIENDS HOW TO PLAY. ED: THAT IS AN MEMO RPG CLASSIC. THAT'S THE POINT. MIKE: THAT'S NOT THE POINT. ED: AGREE TO DISAGREE. KEEP GOING. MIKE: AND HAVE FUN WITH YOUR FRIENDS. STREAMLINED THAT EXPERIENCE TO TRY AND MAKE GAME NIGHT ACCESSIBLE TO MORE PEOPLE AND GIVE TOOLS TO PEOPLE WHO ARE

PASSIONATE ABOUT THE GENRE, TO BRING IN THEIR FRIENDS WHO MAY NOT HAVE EXPERIENCED THE MAGIC OF TABLETOP. CAROLINE: YOU ARE BUILDING THAT IN SOCAL. THIS IS A FOUR-YEAR PROJECT. YOU HAVE BEEN IN STEALTH. WHAT'S THE HEAVY LIFT THAT GOES INTO BRINGING US THESE GAMES? MIKE: ONE OF THE BIG CHALLENGES, WHENEVER YOU'RE DOING SOMETHING INNOVATIVE THAT HAS NOT BEEN DONE BEFORE, THERE'S A LOT OF TRIAL AND ERROR AND ITERATION. OFTEN YOU COME UP WITH A DESIGN AND YOU THINK IT WILL BE GREAT AND THEN WHEN YOU START LAYING, YOU FIND THERE ARE NOT OF THINGS THAT ARE NOT WORKING AS WELL AS YOU THOUGHT. IT'S ITERATIVE TO TRY THINGS, PLAY THEM AND EVOLVE. SOMETIMES YOU HAVE TO MAKE BIG CORRECTIONS ALONG THE WAY.

CAROLINE: WHO ARE YOU TRYING TO BUILD GAMES FOR? MIKE: A BROAD AUDIENCE. WE TRIED TO MAKE GAMES THAT HAVE DEPTH FOR REPLAY AND FOR PEOPLE FAMILIAR WITH THESE GENRES. ACCESSIBILITY, SO EVEN IF YOU ARE NOT FAMILIAR -- CAROLINE: LIKE ME? MIKE: I WOULD LOVE FOR YOU TO PLAY OUR GAMES. ED: IT WOULD BE AN INTERESTING EXPERIENCE FOR US TO PLAY TOGETHER. MIKE AND HIS COLLEAGUES ARE THE PEOPLE BEHIND DIABLO, WAR CRAFT, 2004. SUBSCRIPTION MODEL. YOU WERE BEHIND IT AND THEN SKEPTICAL ABOUT HOW THAT WOULD GROW. LET'S PUT THAT TO ONE SIDE. IT IS NOT THE 1990'S ANYMORE. SEEMS TO ME REALLY HARD TO RUN AN INDEPENDENT GAME STUDIO AND

PUBLISHING SHOP RIGHT NOW, HOW HARD? MIKE: GAME DEVELOPMENT HAS ALWAYS BEEN DIFFICULT. IN OUR EXPERIENCE, I DON'T THINK THERE HAS EVER BEEN A PROJECT -- WE KNOW WHAT WE ARE MAKING, WE WILL MAKE IT AND IT'S GREAT. IT ALWAYS HAS ZIGS AND ZAGS. WHERE WE'VE BEEN SUCCESSFUL IS BEING REACTIVE TO WHAT THE GAMES HAVE TOLD US THEY NEED IN ORDER TO ACHIEVE THEIR POTENTIAL. WE ALWAYS HAVE GONE THROUGH A PROCESS WHERE WE CONTINUE TO BRING IN FRESH PERSPECTIVES TO EXPERIENCE THE GAME AND OBSERVE HOW THEY INTERACT WITH IT. WHERE ARE THEY GETTING STUCK? WHAT DOESN'T MAKE SENSE? AND TRY TO STREAMLINE THAT ONBOARDING. ED: THIS INDUSTRY. THE BACK STORY IS BLIZZARD MERGED WITH ACTIVISION.

AT THE CONCLUSION OF ACTIVISION BEING ACQUIRED BY MICROSOFT, HOW YOU FEEL THAT LEFT THE INDUSTRY? THE SIGNIFICANCE OF IT FOR VIDEO GAMES? MIKE: WE DON'T KNOW THE ANSWER TO THAT YET. IT IS EARLY. YOU ARE GOING TO HAVE TO SEE HOW BLIZZARD IS ABLE TO OPERATE WITHIN THAT NEW ENVIRONMENT AND WHETHER IT'S AN ENVIRONMENT THAT WILL STILL ALLOW IT TO CONTINUE INNOVATING. CAROLINE: YOU BUILT A LEGENDARY BUSINESS IN GAMING THAT MANY PEOPLE GREW UP WITH. IT'S HARD RUNNING BUSINESSES. WHAT LESSONS DID YOU LEARN FROM BLIZZARD THAT YOU ARE BRINGING OVER OR NOT DOING? MIKE: SOME OF THE THINGS WE WANT TO BRING OVER HIS WE THINK GAMING IS A COMPETITIVE BUSINESS.

15,000 GAMES RELEASED EACH YEAR ON STEAM ALONE. IN ORDER TO STAND OUT, YOU HAVE TO DO SOMETHING DIFFERENT, BETTER. HAVING A FOCUS ON CREATING HIGH-QUALITY EXPERIENCES, WE BELIEVE IN THE POWER OF GAMING TO BRING PEOPLE TOGETHER. THAT'S WHAT MOTIVATES US. WE ARE ALWAYS THINKING ABOUT HOW TO MAKE GAMES AS GOOD AS THEY CAN BE WITH A VIEW ON WHAT THE PLAYERS, WHAT WE AS PLAYERS WANT TO SEE FROM THOSE GAMES. WE ALWAYS WANT TO KEEP THAT MINDSET. WITH DREAM HAVEN, WE WANT TO CREATE AN ENVIRONMENT THAT ALLOWS INDIVIDUALS TO DO THEIR BEST WORK. AND TO HAVE THESE STUDIOS FEEL LIKE THEY ARE IN CONTROL OF THEIR DESTINY AND TO FEEL AGENCY, RESPONSIBLE FOR THAT SO

THEY CAN STEER THEIR SHIP IN THE RIGHT WAYS. CAROLINE: IT HAS BEEN SO GOOD TO HAVE YOU. THANK YOU. DREAM HAVEN CEO WITH A NEW TITLE. COMING UP, DELVING DEEP INTO BLIZZARD ENTERTAINMENT AND ITS PAST, THE NEW BOOK ON IT. ♪ ED: LET'S RECAP. FOR VIDEO GAME FANS, BLIZZARD ENTERTAINMENT WAS A HOUSEHOLD NAME, THE MAKER OF OVERWATCH AND WORLD OF WARCRAFT, CHANGED THE LANDSCAPE UNTIL CORPORATE PARENT ACTIVISION STARTED CRACKING DOWN ON BUSINESS AUTONOMY. WE'VE JUST BEEN SPEAKING WITH ONE OF THE EXECUTIVES AT THE HEART OF THE STORY. IT WAS CHRONICLED IN A NEW BOOK. IT JUST CAME OUT THIS WEEK. THE AUTHOR, AND BLOOMBERG NEWS REPORTER, JASON SCHEIER IS HERE.

WITH US. >> IT'S GREAT TO BE HERE. ED: I WAS GOING OVER WITH MIKE SOME OF THE HISTORY OF BLIZZARD. I WAS A CHILD OF THE 1990'S. YOUR BOOK GOES INSIDE THE COMPANY. WHAT WAS HAPPENING THEN. WHERE WOULD YOU LIKE TO START? JASON: IT'S A CULTURE STORY AND A BUSINESS STORY. BOTH GO IN WHILE DIRECTIONS. THE BOOK TRACES THE HISTORY OF BLIZZARD FROM 1991 WHEN IT WAS FOUNDED UNTIL TODAY WHEN IT WAS BOUGHT BY MICROSOFT IN A $69 MILLION ACQUISITION. STILL UNFATHOMABLE. UNIMAGINABLE. THE CULTURE, THE WAY PEOPLE TREATED THE PLACE. WHAT IT WAS LIKE TO WORK THERE. ED: GOOD OR BAD? JASON: I TRY NOT TO BE REDUCTIVE. FOR A LOT OF PEOPLE IT WAS

GOOD, FOR A LOT OF PEOPLE IT WAS BAD. FOR A LOT OF PEOPLE, IT WAS BOTH. WOMEN, THERE WERE A LOT OF DISCUSSIONS ABOUT THE WAY THEY TREATED WOMEN. THIS LAWSUIT. MANY WOMEN FOUND IT WAS THE BEST PLACE IN THE WORLD AND MANY WOMEN WERE HARASSED AND DISCRIMINATED AGAINST. ONE WOMAN TOLD ME SHE MET SOME OF HER BEST FRIENDS IN THE WORLD, PEOPLE WHO WERE IN HER WEDDING PARTY, AT BLIZZARD, BUT SHE HAD TO DEAL WITH GETTING PAID LESS THAN HER MALE COLLEAGUES. CAROLINE: MIKE HAS BUILT THIS NEW VENTURE WITH HIS WIFE AND IS TRYING TO PUSH AGAINST SOME OF THE TOUGHER EXPERIENCES HE HAD. WHAT ARE THE LESSONS BEING LEARNED BY THE INDUSTRY? JASON: I WAS AT THEIR STUDIO LAST

NIGHT. ONE THING THAT STRUCK ME, DREAM HAVEN'S NEW VENTURE, THEY HAVE 37% OF THEIR EMPLOYEES IDENTIFY AS WOMEN OR NON-BINARY AS OPPOSED TO BLIZZARD WHEN THEY WERE FOUNDED, THERE WAS 0%. THEY WERE LUCKY TO GET ONE OR TWO WOMEN. THE ENTIRE VIDEOGAME INDUSTRY WAS IN A DIFFERENT PLACE BACK THEN. NOW THEY ARE WORKING HARD TO BE INCLUSIVE. A LOT OF GAME COMPANIES. IT'S VERY SLOW GRADUAL STEPS TOWARD NOT BEING SEXIST AND CRUMMY TOWARD WORKERS. THEY ARE BEING BROUG -- A LOT MORE PEOPLE ARE WILLING TO CALL OUT COMPANIES THAT DON'T TREAT THEM WELL. THAT HAS LED TO CHANGES. ED: VIDEO GAMES INDUSTRY IS A HUGE INDUSTRY. CAROLINE:

LIKE THE MOVIES. ED: IT'S IMPORTANT. CAROLINE: IT'S A KEY SCREEN WE ARE ALL ADDICTED TO. JASON WILL BE HERE AT SCREEN TIME DOING AN INTERVIEW? JASON: I'M TALKING TO MIKE AFTER YOU. CAROLINE: THIS WHOLE DAY WILL BE AMAZING. SO MANY PEOPLE YOU WANT TO BE LISTENING TO. YOU WILL HEAR THE CEO OF COMCAST COMING ON. YOU DON'T WANT TO MISS IT. ED: TOMORROW, LONG BEACH, TALKING DEFENSE AND SPACE. WE ARE LIVE FROM ROCKET LAB.

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