welcome to the second installment of hip
mojo so now we’re going to talk about
content versus distribution you working
at cells yes I do what is more important
either in your opinion or advertisers
opinions content or distribution well in
an advertiser’s opinion when I talk to
them they care about distribution they
want to reach their target but at the
same time content is also very important
it gives context chew a lateen whatever
campaign that they might be running at
the time it’s a good thing you added
that second part otherwise I would have
had to look for a new sales guy but
let’s talk a bit about Netflix are you a
netflix user yeah i love netflix i mean
it’s it’s great for you know uncovering
you know independent films and
documentaries and you know it comes at a
great price so Netflix basically which
has tripled its stock price in the last
18 months Netflix saw at ten percent of
operation of its market cap when stars
refused to renew stars was only charging
Netflix 30 million dollars a year but it
wasn’t just stars content that Netflix
was getting stars was also
redistributing a lot of great super
premium content that they had now tell
me would you continue to subscribe to
netflix if it started to lose a lot of
the programming that you come to enjoy
on netflix or does the convenience of
the netflix and whatever library that
remains is that enough to keep you
subscribing well netflix does have great
content but they just they need to keep
adding more and more and more i want to
see more you know newer movies more
television shows they’re doing a great
job but they really need to add content
they can’t be losing content at this
point yeah and my reality my guess is
that the big media companies now you
know they view netflix as the frenemy
they like the distribution and the
audience that they’ve aggregated but at
the same time they’re sort of seeing the
storyline that developed with Google and
Apple which is Netflix is getting so
powerful on the backs of the content
owners I wouldn’t be surprised to see a
lot more pressure on netflix i used to
own the stock ages ago i saw it rise if
i owned the stock at 12 billion dollar
market cap i would be worried I’m not
saying to sell it short it or buy it I’m
just saying at 12 billion its price for
perfection let’s shift gears keeping on
with the content versus distribution
team when Charlie Sheen basically gave
CBS the one-finger salute people said
well charlie is the star that show can’t
go on now two and a half men is going to
come back with ashton kutcher which I
actually think I’m more interested in
watching I didn’t I even to watch the
show before but I’m interested in
watching the show now with Ashley at
least to see how it’s going to turn up
now is there not a parallel with the way
that CBS sort of just said okay no
problem charlie you could leave we’re
gonna you know the Sun rises tomorrow is
that not the same parallel with Oprah I
mean she had massive syndication massive
distribution she decides to leave to
basically launcher all network and it’s
not going so well why do you think
Oprah’s new network is not doing well
well I think there’s there’s a number of
things first I think the audience was
really expecting the oprah winfrey show
on steroids and that’s not what they got
I mean I’ve only watched a few different
shows egon on The Oprah network but you
know I just the content doesn’t feel
like it’s got the Oprah’s magic touch
and i think that’s that’s definitely you
know what’s what’s missing look it now
shifting gears on the third theme in
this content versus distribution front
the youtube monopoly that i call they
own you know 40 plus percent of view so
it’s not really a monopoly but they’re
the dominant 800-pound gorilla where do
you watch videos outside of YouTube oh
that’s a tough one I mean funny or die
obviously watchmojo.com you know that’s
that’s pretty much yet other otherwise
it’s YouTube okay so we wrote an article
on media post and you know I asked a lot
of people formal informal social
networks business networks personal
networks and here’s I think the way you
should look at it I think by and large
what you’re seeing when you look at the
top ten comscore properties you got
YouTube which is the dominant player and
then you have the facebooks the vivos
and then you have the traditional media
companies like turn our digital which is
CNN like NBC digital and those companies
basically if they restrict access to
their content on sites like you know
YouTube then they will build audiences
after that I mean you got the to a
lesser extent the other aggregators
metacafe dailymotion the adult sites
have actually embraced you know free
models quite well and then you mentioned
the funny sites interestingly I think a
lot of the funny sites whether it’s
funny
CollegeHumor and the onion they’ve
actually managed for whatever reason to
build up some kind of audience
interaction outside of YouTube but we
have this discussion you know for
watchmojo we generate half of our views
on YouTube we probably generate 5% of
them on on on watchmojo.com I think with
the announcement that comscore and
YouTube are going to open up the data
and let advertisers see which content
providers reach what kind of audience is
on YouTube we’re at a point where I
think it’s almost fine to say you know
what the sites there is a microsite on
on steroids but you might as well just
you know focus on on YouTube do you see
any drawbacks to that as when you talk
to advertisers to focus on YouTube do
you think there should be an emphasis on
one’s owned and operated property well I
mean I always think that it’s good to
build up your your property because you
have full control over everything I mean
like you always say you know this is
YouTube’s world we’re just streaming in
it and I think you know that really
limits our ability to attract
advertisers if we can only go through
you know our our inventory on YouTube
you know it just it just limits us and
what do you think well I want to ask you
what do you think actually about the
fact that some like we actually haven’t
owned and operated but there are some
large sites like machinima which is
massive on YouTube you go to their
website and it’s just a corporate page
do you think that’s smart or do you
think they should have some kind of
consumer facing presence on their own
and operated as well well I think at
this point it’s it’s really moved they
have they’ve built their business on
YouTube it’s clearly been successful for
them I don’t see any reason why they
should go back and build a
consumer-facing you know website last
question on this before we move to
lightning round if you had to pick one
thing to build your business on would it
be content or distribution content I
mean you’re never going to get the
distribution without good content so
that always comes first yeah i agree
content i hate to agree on something but
we’ll be back lightning round email the
week right after this break
mojo so now we’re going to talk about
content versus distribution you working
at cells yes I do what is more important
either in your opinion or advertisers
opinions content or distribution well in
an advertiser’s opinion when I talk to
them they care about distribution they
want to reach their target but at the
same time content is also very important
it gives context chew a lateen whatever
campaign that they might be running at
the time it’s a good thing you added
that second part otherwise I would have
had to look for a new sales guy but
let’s talk a bit about Netflix are you a
netflix user yeah i love netflix i mean
it’s it’s great for you know uncovering
you know independent films and
documentaries and you know it comes at a
great price so Netflix basically which
has tripled its stock price in the last
18 months Netflix saw at ten percent of
operation of its market cap when stars
refused to renew stars was only charging
Netflix 30 million dollars a year but it
wasn’t just stars content that Netflix
was getting stars was also
redistributing a lot of great super
premium content that they had now tell
me would you continue to subscribe to
netflix if it started to lose a lot of
the programming that you come to enjoy
on netflix or does the convenience of
the netflix and whatever library that
remains is that enough to keep you
subscribing well netflix does have great
content but they just they need to keep
adding more and more and more i want to
see more you know newer movies more
television shows they’re doing a great
job but they really need to add content
they can’t be losing content at this
point yeah and my reality my guess is
that the big media companies now you
know they view netflix as the frenemy
they like the distribution and the
audience that they’ve aggregated but at
the same time they’re sort of seeing the
storyline that developed with Google and
Apple which is Netflix is getting so
powerful on the backs of the content
owners I wouldn’t be surprised to see a
lot more pressure on netflix i used to
own the stock ages ago i saw it rise if
i owned the stock at 12 billion dollar
market cap i would be worried I’m not
saying to sell it short it or buy it I’m
just saying at 12 billion its price for
perfection let’s shift gears keeping on
with the content versus distribution
team when Charlie Sheen basically gave
CBS the one-finger salute people said
well charlie is the star that show can’t
go on now two and a half men is going to
come back with ashton kutcher which I
actually think I’m more interested in
watching I didn’t I even to watch the
show before but I’m interested in
watching the show now with Ashley at
least to see how it’s going to turn up
now is there not a parallel with the way
that CBS sort of just said okay no
problem charlie you could leave we’re
gonna you know the Sun rises tomorrow is
that not the same parallel with Oprah I
mean she had massive syndication massive
distribution she decides to leave to
basically launcher all network and it’s
not going so well why do you think
Oprah’s new network is not doing well
well I think there’s there’s a number of
things first I think the audience was
really expecting the oprah winfrey show
on steroids and that’s not what they got
I mean I’ve only watched a few different
shows egon on The Oprah network but you
know I just the content doesn’t feel
like it’s got the Oprah’s magic touch
and i think that’s that’s definitely you
know what’s what’s missing look it now
shifting gears on the third theme in
this content versus distribution front
the youtube monopoly that i call they
own you know 40 plus percent of view so
it’s not really a monopoly but they’re
the dominant 800-pound gorilla where do
you watch videos outside of YouTube oh
that’s a tough one I mean funny or die
obviously watchmojo.com you know that’s
that’s pretty much yet other otherwise
it’s YouTube okay so we wrote an article
on media post and you know I asked a lot
of people formal informal social
networks business networks personal
networks and here’s I think the way you
should look at it I think by and large
what you’re seeing when you look at the
top ten comscore properties you got
YouTube which is the dominant player and
then you have the facebooks the vivos
and then you have the traditional media
companies like turn our digital which is
CNN like NBC digital and those companies
basically if they restrict access to
their content on sites like you know
YouTube then they will build audiences
after that I mean you got the to a
lesser extent the other aggregators
metacafe dailymotion the adult sites
have actually embraced you know free
models quite well and then you mentioned
the funny sites interestingly I think a
lot of the funny sites whether it’s
funny
CollegeHumor and the onion they’ve
actually managed for whatever reason to
build up some kind of audience
interaction outside of YouTube but we
have this discussion you know for
watchmojo we generate half of our views
on YouTube we probably generate 5% of
them on on on watchmojo.com I think with
the announcement that comscore and
YouTube are going to open up the data
and let advertisers see which content
providers reach what kind of audience is
on YouTube we’re at a point where I
think it’s almost fine to say you know
what the sites there is a microsite on
on steroids but you might as well just
you know focus on on YouTube do you see
any drawbacks to that as when you talk
to advertisers to focus on YouTube do
you think there should be an emphasis on
one’s owned and operated property well I
mean I always think that it’s good to
build up your your property because you
have full control over everything I mean
like you always say you know this is
YouTube’s world we’re just streaming in
it and I think you know that really
limits our ability to attract
advertisers if we can only go through
you know our our inventory on YouTube
you know it just it just limits us and
what do you think well I want to ask you
what do you think actually about the
fact that some like we actually haven’t
owned and operated but there are some
large sites like machinima which is
massive on YouTube you go to their
website and it’s just a corporate page
do you think that’s smart or do you
think they should have some kind of
consumer facing presence on their own
and operated as well well I think at
this point it’s it’s really moved they
have they’ve built their business on
YouTube it’s clearly been successful for
them I don’t see any reason why they
should go back and build a
consumer-facing you know website last
question on this before we move to
lightning round if you had to pick one
thing to build your business on would it
be content or distribution content I
mean you’re never going to get the
distribution without good content so
that always comes first yeah i agree
content i hate to agree on something but
we’ll be back lightning round email the
week right after this break
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