welcome back to segment three of show 17
apparently next week we’re going to have
a segment called who has more integrity
because that’s now what what CT wants to
what CT wants to discuss okay so going
to lightning round all right first
questions for you ash despite all the
gloom and doom around media and content
why is sports such a resilient yeah so
okay sports and news along with how to
and porn are like very different kinds
of content but no one gets fanatical
about how to important are they doing it
well right back to different no but just
so I’m just saying those are for of
maybe five or six kinds of content that
are very different from the rules of
content but to focus now on sports and
news news is ultimately a commodity
unless you have something crazy like 60
minutes sits down with Steve Jobs or
something or the author of the Steve
Jobs while so sports is not a commodity
so I think as much as you’re seeing
challenges around content and challenges
around cord cutting and and the fact
that Sports is generally a live thing
that is why sports is the outlier that
is why you can see a lot of money
invested and that’s why ESPN is worth a
bundle like I think Hearst owns a chunk
of ESPN I think that’s worth more than
everything else they want almost maybe
not i mean the Mademoiselle or kozma or
whatever they have is is the money you
know is a cash cow but my point is
ultimately at the core because it’s
really the opposite of commodity and
because of the live nature means you can
like cut around it you can’t really I
mean you could pirate it but how many
people want to watch is super bowl on a
little like you know random pirated
website online it’s so that has so much
power and I think Sports is a great bet
if you’re an investor because of those
rights and the life factor that’s my
that’s my answer your two cents yep next
does Facebook because we haven’t talked
enough about facebook on this show does
Facebook have a chance with this Buffy
phone which used to be called Slayer
which was a bit too violent so they went
with Buffy it’s basically like an HTC
phone right and it’s powered by Android
you know this is what I think what’s
interesting I think Facebook has a
chance to actually you know produce a
popular phone and something that really
brings in more users or brings
using more closely I think what’s
interesting though is that they’re
building it off Android is supposed to
be a very customized version of Android
but just the same they’re building off
of a Google operating system and I keep
bringing up this article and I haven’t
looked up the author but it was a
techcrunch article shortly after Google
Plus launched that pretty much saying is
like regardless of Google+ as chances of
succeeding or failing think of it in big
terms of a big picture this could be a
big Trojan horse for google well I think
this this Buffy phone just might be
Google’s George Trojan horse to get
behind the facebook wall at the end of
the day mobile collects more data on you
than anything that’s really what
Facebook and Google are competing over
there competing over data so that they
can compete over advertising platforms
so if Facebook actually the more
successful the Buffy phone is the more
that Google will be able to get behind
the wall and get a piece of that pie so
yeah the phone has a chance but it
doesn’t have a chance of turning them
into a Google killer okay interesting on
a follow-up I want to do a segment on
Facebook Microsoft Microsoft’s invested
you know 240 million for a one point six
percent stake valuing facebook at 15
building a couple years ago that was a
great deal with in hindsight we should
talk about where is the end game is it
just an investment that they’ll
eventually get liquidity or do you see a
broader deeper partnership but we’ll
touch on that later because this is
lightning round not right mild drizzle
okay another question for you NBC okay
so Jimmy Fallon played lying ass bitch
when I was banded his ban did when
Bachmann what’s her first thing the show
michele bachmann crazy woman there
walked on are we gonna have to apologize
because I call the crazy one I don’t
know don’t think so but she walks on the
set the band plays lying ass bitch one
does NBC have to apologize but two is
Jimmy Fallon really like innocent or was
he like guys when she comes on let’s
play well okay let’s deal with two first
how do we know you know like usually
these late-night talk show hosts they at
least seem to have this really good
rapport with it with the head of their
band the lead of their band so that
could have just been the band’s call it
could have been his call it’s perfectly
possible either way so I don’t know but
there’s NBC you have to apologize
unfortunately yes
the GOP sees and me from you I’m shocked
but okay go on well no no I’m gonna look
at this I don’t think they should but
they have to because the GOP still sees
NBC is part of you know the liberal
media we have a presidential race coming
up and at the end of the day if if NBC
wants a journalist to continue to have
access to the GOP during the election
campaign they’re going to have to smooth
that kind of thing over so not only do
they have to apologize but they actually
have to force Jimmy Fallon to apologize
and I feel really but he did apologize i
think too and i feel really bad for him
because his job is to make fun of people
and when you have to apologize for doing
a good job it just really sucks okay so
i have a little comment here which is
you know sometimes we’ll get pitches
from PR firms to do the story around or
with one of their clients and then
they’re always very happy but often
times afterwards like oh this was great
but it would have been good if you guys
would have also covered this or that and
i’m very politely go if you want to
control the message advertise spend a
check spend your money advertise you
more or less control the message when
you roll the dice with PR you think
you’re getting this great you know but I
go then it’s like a double-edged sword
it’s the same thing if she wants like to
be treated in a certain way then like do
an interview with Katie Couric or 60
minutes you’re going on Jimmy Fallon
likes fire you know what do you expect
that’s why at least one like let’s say
Sarah Palin goes on NBC yeah there’s
gonna be some you know humor at your
expense so if she’s going on late night
I think it’s like what were you
expecting like your handlers what did
they you know what now playing lying ass
bitch might be a bit over the subtle
though but that’s it like you only this
is also like the Barbara Walters effect
like nobody would notice until you go
please don’t take a picture of my house
and then everybody takes a picture of
your house so now we’re talking about it
and people are like well why is michelle
bachman some kind of lying ass bitch
because why would she object to this so
i think this is the kind of thing that
they probably should have let it slide
but I get your point that the same way
that Obama just for a while or maybe
still does not grant any access to fox
because they compared him to you know
they probably call them black Hitler
yeah but I was going to say they could
they probably still come Osama I get
that point that if NBC wants access to
the grand old party then they have to
apologize next question all right so ash
BlackBerry’s stock just keeps plummeting
where did they go wrong I think they
went wrong one the 25
under structure that are also co seals
rarely works 12 there are very smart
guys very wealthy guys very accomplished
guys but at some point you suffer from
hubris and arrogance I mean not knocking
them but I sort of m5 money I’d beer
yeah exactly and three they really
really became the leading pioneering
communications tool to emerge in over
like a decade or ever so I think they
got complacent and they’re not web guys
you’ve seen a lot of insiders come out
and say you know basically like they
were content with email messaging they
never understood like their browser I’ve
never used their browser I actually
switched to iphone because I was like as
the CEO of an online video company I
can’t possibly start wrapping my head
around mobile opportunities if I’m using
a blackberry I go the browser just
doesn’t cut it so I think it was
everything was management it was product
and it was strategy but at the same time
I don’t think you know some people say
the question is are they the next palm
are they going to disappear you know
it’s hard to imagine them doing that
just because they’re so tied into the
business degree like Microsoft is tied
in okay but here’s a nuance the nuances
with Microsoft it’s harder for people to
show up there for this yeah no it’s
worse for people to show up saying well
I’m gonna use a Mac at the office so why
do I have this pc here but once you saw
the trends that people who had an
expense account and expense sorry a paid
blackberry starting to show up and use
an iphone then their IT departments had
to support it and then the iphone
basically got like the Trojan horse into
corporations so I think they’re actually
a bit more you know in danger than
Microsoft but I do think that for them
maybe at this juncture it also is harder
to just accept as sale because their
share is trading at below book value
that they’re like well we’re not going
to realize much value if we sell now
like you’re not supposed to sell low
where I’m supposed to sell high so I
think for them now there may be in this
sort of like vicious downward spiral
where you know their stuff I don’t know
what they’re going to do totally agree
and I think products suffered a lot
because of management yeah so I have a
question for you each year Black Friday
rolls around we see horrible signs of
humanity’s worst you know trades you
know that’s one video on Business
Insider which speaks volumes
I think the moon is out but my point is
we also see that online shopping keeps
growing i think it was online shopping
was twenty-five percent higher than the
previous year right my point is are we
going to be at a point where basically
people stop being animals and going and
into stores on black friday because they
can’t handle it or forget how much
growth you see online it’ll always be
this thing this cultural phenomenon well
you know I I don’t know if it’ll a
cultural phenomenon I may or may not be
strong but I don’t think
brick-and-mortar Black Friday is really
going to go away you see we do spend
more and more online every year you know
as companies figure out what they can
sell online and what they can’t but the
end at the end of the day a Black Friday
is really about clearing inventory
getting back into the black whether
you’re online or your brick-and-mortar
you’re still going to have an incentive
to do that there’s some businesses that
are always going to be brick-and-mortar
they’re always going to have to dump
inventory so even though you know the
brick-and-mortar guys don’t even make
money on black friday they just kind of
break even and the online guys you know
because of the smaller overhead do make
money the brick-and-mortar guys are
still going to do it and people will
still go in there looking for that two
dollar toaster if they think they can
get it I think it was a two dollar wall
for me wall for me waffle maker next up
I email of the week so we have mark from
New York and he’s asking when will
digital advertising start to act like
other types of advertising with regard
to growth rates okay so in other forms
of advertising print TV it’s generally
you’re not going to see you might see
annual growth you’re over your each
quarter over like q1 over q1 of year
after year but sequentially you don’t
always see higher revenue right so
sequentially is quarter-over-quarter so
q3 to q4 so for the longest time online
you’ve sometimes seen each quarter over
a long two three four year period always
growing right right um I think that will
still continue more or less as more
money comes online however one thing has
really dramatically changed this year
where you’re seeing a lot less
opportunistic funds where people are
just going to spend money like ad
agencies are just going to come out in
like october november and say oh look we
got an extra 10 million we need to spend
let’s spend it what we’re now seeing is
company’s ad agencies and marketers
really planning for the year a lot of
the biggest ad agencies have already
planned their 2012 budgets it’s crazy
you’ll go into an ad agency and you’re
pitching them and they’re like oh this
is great we’ll consider it for 2013 on
my 2013 what the hell they’re like well
we’re already planned for 2012 so I
think you’re now seeing this scenario
where one yes over a long period
sequentially revenue keeps going up but
really it’s more annually
quarter-over-quarter sorry you’re over
your revenues are going to grow but
sequentially you may see q4 being really
strong q1 being puny and that’s the way
things usually work but the biggest
change is like speaking to other CEOs
they’ve sort of confirmed this a lot of
them are telling me that q4 did not
really meet their expectations they
think that q3 was going to be is going
to be their best quarter that is a bit
of an anomaly in my 1512 whatever years
of working online q4 has always been
very strong November has always been
stronger than december because december
people start getting sloshed on eggnog
and they forget to send back the
contract and all so it’s normal for
november to be stronger than december
but that q3 for a lot of companies is
going to be the best quarter of the year
not for all I think but for a lot of
digital media companies that I’m
speaking to I think that starts to show
a signal on the market again it could be
just anecdotal on a few CEO say that but
I think you’re going to see a lot of
companies especially the small midsize
companies not hit their q4 which was
maybe extremely high based on
expectations and not any realistic sense
you know it’s funny a quick anecdote on
my agency experience side I’ve always
noticed that q4 is very quiet they
actually encourage people to work less
so that they could pay them less q3 was
always the circus terms of both doing
business and getting work done there you
have it thank you for joining us this
was show 17 catches next week for show
18 of hip mojo
apparently next week we’re going to have
a segment called who has more integrity
because that’s now what what CT wants to
what CT wants to discuss okay so going
to lightning round all right first
questions for you ash despite all the
gloom and doom around media and content
why is sports such a resilient yeah so
okay sports and news along with how to
and porn are like very different kinds
of content but no one gets fanatical
about how to important are they doing it
well right back to different no but just
so I’m just saying those are for of
maybe five or six kinds of content that
are very different from the rules of
content but to focus now on sports and
news news is ultimately a commodity
unless you have something crazy like 60
minutes sits down with Steve Jobs or
something or the author of the Steve
Jobs while so sports is not a commodity
so I think as much as you’re seeing
challenges around content and challenges
around cord cutting and and the fact
that Sports is generally a live thing
that is why sports is the outlier that
is why you can see a lot of money
invested and that’s why ESPN is worth a
bundle like I think Hearst owns a chunk
of ESPN I think that’s worth more than
everything else they want almost maybe
not i mean the Mademoiselle or kozma or
whatever they have is is the money you
know is a cash cow but my point is
ultimately at the core because it’s
really the opposite of commodity and
because of the live nature means you can
like cut around it you can’t really I
mean you could pirate it but how many
people want to watch is super bowl on a
little like you know random pirated
website online it’s so that has so much
power and I think Sports is a great bet
if you’re an investor because of those
rights and the life factor that’s my
that’s my answer your two cents yep next
does Facebook because we haven’t talked
enough about facebook on this show does
Facebook have a chance with this Buffy
phone which used to be called Slayer
which was a bit too violent so they went
with Buffy it’s basically like an HTC
phone right and it’s powered by Android
you know this is what I think what’s
interesting I think Facebook has a
chance to actually you know produce a
popular phone and something that really
brings in more users or brings
using more closely I think what’s
interesting though is that they’re
building it off Android is supposed to
be a very customized version of Android
but just the same they’re building off
of a Google operating system and I keep
bringing up this article and I haven’t
looked up the author but it was a
techcrunch article shortly after Google
Plus launched that pretty much saying is
like regardless of Google+ as chances of
succeeding or failing think of it in big
terms of a big picture this could be a
big Trojan horse for google well I think
this this Buffy phone just might be
Google’s George Trojan horse to get
behind the facebook wall at the end of
the day mobile collects more data on you
than anything that’s really what
Facebook and Google are competing over
there competing over data so that they
can compete over advertising platforms
so if Facebook actually the more
successful the Buffy phone is the more
that Google will be able to get behind
the wall and get a piece of that pie so
yeah the phone has a chance but it
doesn’t have a chance of turning them
into a Google killer okay interesting on
a follow-up I want to do a segment on
Facebook Microsoft Microsoft’s invested
you know 240 million for a one point six
percent stake valuing facebook at 15
building a couple years ago that was a
great deal with in hindsight we should
talk about where is the end game is it
just an investment that they’ll
eventually get liquidity or do you see a
broader deeper partnership but we’ll
touch on that later because this is
lightning round not right mild drizzle
okay another question for you NBC okay
so Jimmy Fallon played lying ass bitch
when I was banded his ban did when
Bachmann what’s her first thing the show
michele bachmann crazy woman there
walked on are we gonna have to apologize
because I call the crazy one I don’t
know don’t think so but she walks on the
set the band plays lying ass bitch one
does NBC have to apologize but two is
Jimmy Fallon really like innocent or was
he like guys when she comes on let’s
play well okay let’s deal with two first
how do we know you know like usually
these late-night talk show hosts they at
least seem to have this really good
rapport with it with the head of their
band the lead of their band so that
could have just been the band’s call it
could have been his call it’s perfectly
possible either way so I don’t know but
there’s NBC you have to apologize
unfortunately yes
the GOP sees and me from you I’m shocked
but okay go on well no no I’m gonna look
at this I don’t think they should but
they have to because the GOP still sees
NBC is part of you know the liberal
media we have a presidential race coming
up and at the end of the day if if NBC
wants a journalist to continue to have
access to the GOP during the election
campaign they’re going to have to smooth
that kind of thing over so not only do
they have to apologize but they actually
have to force Jimmy Fallon to apologize
and I feel really but he did apologize i
think too and i feel really bad for him
because his job is to make fun of people
and when you have to apologize for doing
a good job it just really sucks okay so
i have a little comment here which is
you know sometimes we’ll get pitches
from PR firms to do the story around or
with one of their clients and then
they’re always very happy but often
times afterwards like oh this was great
but it would have been good if you guys
would have also covered this or that and
i’m very politely go if you want to
control the message advertise spend a
check spend your money advertise you
more or less control the message when
you roll the dice with PR you think
you’re getting this great you know but I
go then it’s like a double-edged sword
it’s the same thing if she wants like to
be treated in a certain way then like do
an interview with Katie Couric or 60
minutes you’re going on Jimmy Fallon
likes fire you know what do you expect
that’s why at least one like let’s say
Sarah Palin goes on NBC yeah there’s
gonna be some you know humor at your
expense so if she’s going on late night
I think it’s like what were you
expecting like your handlers what did
they you know what now playing lying ass
bitch might be a bit over the subtle
though but that’s it like you only this
is also like the Barbara Walters effect
like nobody would notice until you go
please don’t take a picture of my house
and then everybody takes a picture of
your house so now we’re talking about it
and people are like well why is michelle
bachman some kind of lying ass bitch
because why would she object to this so
i think this is the kind of thing that
they probably should have let it slide
but I get your point that the same way
that Obama just for a while or maybe
still does not grant any access to fox
because they compared him to you know
they probably call them black Hitler
yeah but I was going to say they could
they probably still come Osama I get
that point that if NBC wants access to
the grand old party then they have to
apologize next question all right so ash
BlackBerry’s stock just keeps plummeting
where did they go wrong I think they
went wrong one the 25
under structure that are also co seals
rarely works 12 there are very smart
guys very wealthy guys very accomplished
guys but at some point you suffer from
hubris and arrogance I mean not knocking
them but I sort of m5 money I’d beer
yeah exactly and three they really
really became the leading pioneering
communications tool to emerge in over
like a decade or ever so I think they
got complacent and they’re not web guys
you’ve seen a lot of insiders come out
and say you know basically like they
were content with email messaging they
never understood like their browser I’ve
never used their browser I actually
switched to iphone because I was like as
the CEO of an online video company I
can’t possibly start wrapping my head
around mobile opportunities if I’m using
a blackberry I go the browser just
doesn’t cut it so I think it was
everything was management it was product
and it was strategy but at the same time
I don’t think you know some people say
the question is are they the next palm
are they going to disappear you know
it’s hard to imagine them doing that
just because they’re so tied into the
business degree like Microsoft is tied
in okay but here’s a nuance the nuances
with Microsoft it’s harder for people to
show up there for this yeah no it’s
worse for people to show up saying well
I’m gonna use a Mac at the office so why
do I have this pc here but once you saw
the trends that people who had an
expense account and expense sorry a paid
blackberry starting to show up and use
an iphone then their IT departments had
to support it and then the iphone
basically got like the Trojan horse into
corporations so I think they’re actually
a bit more you know in danger than
Microsoft but I do think that for them
maybe at this juncture it also is harder
to just accept as sale because their
share is trading at below book value
that they’re like well we’re not going
to realize much value if we sell now
like you’re not supposed to sell low
where I’m supposed to sell high so I
think for them now there may be in this
sort of like vicious downward spiral
where you know their stuff I don’t know
what they’re going to do totally agree
and I think products suffered a lot
because of management yeah so I have a
question for you each year Black Friday
rolls around we see horrible signs of
humanity’s worst you know trades you
know that’s one video on Business
Insider which speaks volumes
I think the moon is out but my point is
we also see that online shopping keeps
growing i think it was online shopping
was twenty-five percent higher than the
previous year right my point is are we
going to be at a point where basically
people stop being animals and going and
into stores on black friday because they
can’t handle it or forget how much
growth you see online it’ll always be
this thing this cultural phenomenon well
you know I I don’t know if it’ll a
cultural phenomenon I may or may not be
strong but I don’t think
brick-and-mortar Black Friday is really
going to go away you see we do spend
more and more online every year you know
as companies figure out what they can
sell online and what they can’t but the
end at the end of the day a Black Friday
is really about clearing inventory
getting back into the black whether
you’re online or your brick-and-mortar
you’re still going to have an incentive
to do that there’s some businesses that
are always going to be brick-and-mortar
they’re always going to have to dump
inventory so even though you know the
brick-and-mortar guys don’t even make
money on black friday they just kind of
break even and the online guys you know
because of the smaller overhead do make
money the brick-and-mortar guys are
still going to do it and people will
still go in there looking for that two
dollar toaster if they think they can
get it I think it was a two dollar wall
for me wall for me waffle maker next up
I email of the week so we have mark from
New York and he’s asking when will
digital advertising start to act like
other types of advertising with regard
to growth rates okay so in other forms
of advertising print TV it’s generally
you’re not going to see you might see
annual growth you’re over your each
quarter over like q1 over q1 of year
after year but sequentially you don’t
always see higher revenue right so
sequentially is quarter-over-quarter so
q3 to q4 so for the longest time online
you’ve sometimes seen each quarter over
a long two three four year period always
growing right right um I think that will
still continue more or less as more
money comes online however one thing has
really dramatically changed this year
where you’re seeing a lot less
opportunistic funds where people are
just going to spend money like ad
agencies are just going to come out in
like october november and say oh look we
got an extra 10 million we need to spend
let’s spend it what we’re now seeing is
company’s ad agencies and marketers
really planning for the year a lot of
the biggest ad agencies have already
planned their 2012 budgets it’s crazy
you’ll go into an ad agency and you’re
pitching them and they’re like oh this
is great we’ll consider it for 2013 on
my 2013 what the hell they’re like well
we’re already planned for 2012 so I
think you’re now seeing this scenario
where one yes over a long period
sequentially revenue keeps going up but
really it’s more annually
quarter-over-quarter sorry you’re over
your revenues are going to grow but
sequentially you may see q4 being really
strong q1 being puny and that’s the way
things usually work but the biggest
change is like speaking to other CEOs
they’ve sort of confirmed this a lot of
them are telling me that q4 did not
really meet their expectations they
think that q3 was going to be is going
to be their best quarter that is a bit
of an anomaly in my 1512 whatever years
of working online q4 has always been
very strong November has always been
stronger than december because december
people start getting sloshed on eggnog
and they forget to send back the
contract and all so it’s normal for
november to be stronger than december
but that q3 for a lot of companies is
going to be the best quarter of the year
not for all I think but for a lot of
digital media companies that I’m
speaking to I think that starts to show
a signal on the market again it could be
just anecdotal on a few CEO say that but
I think you’re going to see a lot of
companies especially the small midsize
companies not hit their q4 which was
maybe extremely high based on
expectations and not any realistic sense
you know it’s funny a quick anecdote on
my agency experience side I’ve always
noticed that q4 is very quiet they
actually encourage people to work less
so that they could pay them less q3 was
always the circus terms of both doing
business and getting work done there you
have it thank you for joining us this
was show 17 catches next week for show
18 of hip mojo
Please follow and like us: