01:00:42 · Scott Galloway, S5, S6
[01:00:42] S0: Honey, that flu keeping you up? Yeah. I don't got this. You need Nyquil intense flu. [01:00:48] S5: Undo your flu symptoms with Nyquil intense flu, the nighttime sniffling, aching, aching fever, best sleep with the flu medicine. You do got this. Use as directed. Keep out of reach of children. [01:00:56] S6: Are you tired of hearing about business, tech, and finance from the bros? We are the Tiger Sisters, a top business podcast with the Vox Media Podcast Network. Tiger Sisters releases every Monday, and we decode money, power, and love. And who doesn't love all those things? We are the Internet's Wall Street and Silicon Valley big sisters. Tune in every Monday for late night sister talk meets boardroom strategy. Check out Tiger Sisters on YouTube, Spotify, or wherever you get your podcasts. Welcome to the Tiger fam.
01:01:31 · Ed Elson
[01:01:31] S4: We're back with Prof G Markets. Meta is making a move into long form video. Instagram announced new features that will let creators upload videos up to ninety minutes long and bring reels to Apple TV. This puts Instagram in more direct competition with YouTube, but there is one key difference. Unlike YouTube, Instagram won't share its ad revenue with creators. So, Scott, this is just fascinating, especially for us considering we are a podcast that posts our show to YouTube. It's a big part of our business. Meta is essentially saying, do it on our platform. Do it on Instagram. Ninety minute videos, podcasts, vlogs, interviews, all of that all of that kind of media. I don't see a reason why we will not do that. This is not a zero sum game. Our business is built on ads, selling ads, selling impressions. The more impressions we can make, the more influence and the more money we make. That's the way it works for most media businesses today. This to me seems like a good move by Meta that will genuinely cause problems for YouTube and for every other media company? What do you think?
01:02:44 · Scott Galloway
[01:02:44] S0: I think this is big, and this is how one small company is thinking about this. So the rub on this is they're not sharing any revenue. Right? YouTube pays out, I think, about 50% of its revenue to creators. It's worked really well for them. Thus far, I think Instagram and their features has not said they're gonna share any of the revenue. But at the same time, if you're profiting media, what we're gonna do, we're gonna go hard at this because we can embed ads in our content. Right? We can do host readovers as part of the show, and that will, I believe, be in there. And if if we can get another 100, 200, 300,000 views on Instagram features, then we can sell that into our advertisers. Right? Because... So Instagram isn't gonna run ads and then do a revenue split, but I don't see any reason why we wouldn't be able to embed some sort of, you know, some sort of host readovers. The Mark Zuckerberg is the best thief of IP in history, and he's clearly coming for YouTube. And just to give you a sense of the ecosystem, when you're talking about television, 49% of it or half of it is streaming. Cables, 19%. Broadcast is 18%. Others, 14%. And then let's break down the streaming ecosystem. It used to be YouTube, low double digits. Netflix, high single digits. That delta has broadened dramatically. YouTube now sits at 16. Netflix is at eight. Disney's at five. Prime Video at four. Roku, interesting, 3%, which I believe News Corp just purchased. Paramount at 2.3. Tubi at 1.9. Peacock Plus, 1.6. Warner Brothers Discovery, this was shocking to me because this includes HBO, is at 1.4%. It truly is artisanal at this point. And I think Meta is absolutely coming for that 16% that YouTube commands right now. And the reason why we'll do it and go hard at it, at least initially, is that you gotta think that Meta with 3,000,000,000 users is going to game the algorithm and significantly over reward early adopters of features. Right?
01:04:49 · Ed Elson, Scott Galloway
[01:04:49] S4: Yes. So true. [01:04:51] S0: They're gonna... All of a sudden, you're gonna have Ed Elson droning on for seventy minutes in your in your [01:04:58] S4: And you will see it whether you like it or not. [01:05:00] S0: Right. And you're thinking like, where are the Great Dane puppies? And where's the where's the woman talking about social justice who also happens to be really hot? That's in my feed. All of a sudden, I'm gonna have Ed [01:05:11] S4: Move over. [01:05:12] S0: I'm like Ed [01:05:12] S4: Ed Elson's here. [01:05:13] S0: I can survive Ed for thirty seconds, but wait. This won't end. But my point is, we'll go hard at this early to experiment, but also you you just gotta think they're gonna juice the the first decent content, the first 10,000 creators that put up a reasonable sixty minutes of content or repurpose good content, gonna Meta's gonna, like... They're gonna... They're the drug dealer passing out free crack to third graders. Right? They're gonna say, okay. Would you like a little taste of hundreds of thousands of views for the early adopters? So as just one business and one small media business, we're gonna go hard at this.
01:05:55 · Ed Elson
[01:05:55] S4: I think this is the perfect encapsulation of what the problem is for a company like Netflix, because it says a lot that we are immediately down to do this. It tells you something about the way the media ecosystem works today, which is that it's not about contracts. We're not inking deals with with Netflix or even YouTube. We're just trying to get our stuff out there. Wherever there are eyeballs, wherever there's attention, that's where we're trying to go. And and we're not alone in that. That is the way most of this works. And so to me, this is an indictment of the traditional production budget model and the... Honestly, the traditional streaming model. And this is... This shows you where things are headed, which is that it's all going into a user generated content direction. Like, you've got Netflix's production budget of $20,000,000,000. Compare that to Meta's production budget of literally zero because it's the users that are making the content. And I think that, you know, that that might sound counterintuitive, like, why... I mean, Meta doesn't pay its creators. That's a striking thing. How is it that there is literally billions of hours of content that is being produced every day on that platform despite the fact that Meta isn't paying them? The reason that that is happening is because people think of media differently, and the reality is people on Instagram, people on reels, people on people on TikTok too, they wanna get famous, and they wanna get followers, and they wanna get likes. And that in and of itself is a market. That is an ecosystem that drives more production, more user generated content, and it's something that Meta has been able to exploit. In addition, they're basically telling people like us, you guys figure out how to make money yourselves. We're not gonna pay you an ad ad share program. You guys go figure it out, figure out your third party agreements. You can negotiate your own deals by yourself. You guys are adults. Handle it yourself. That's exactly what we are doing. It's what we've done with our YouTube model as well. I And think it's what a lot of other creators are gonna be doing as well. And all of this means that that that viewing time number for Netflix specifically, which has been falling quite precipitously over the past several years.
01:08:20 · Ed Elson
Average viewing time per member on Netflix has fallen 26% in the past three three years. That's gonna keep going down. And I think it's really, really tough considering that Netflix stock is already down 44% in the past year. We know that they're getting killed by YouTube in terms of TV viewing time. And I think this really begs a very important question for Netflix, which is what are you going to do about this? What is your plan? Because you're living in a very, very different world from what the world was five years ago. You you used to be competing with HBO Max. You're competing with Meta, TikTok, YouTube. This is a very, very different media ecosystem. And I... I'm not totally sure what the answer is. I I have been noodling on some ideas. But, you know, if you're on the Netflix board and you see this headline, what do you think, and what do you do?