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