Decoder with Nilay Patel
00:48:15 · S1, Nilay Patel, Matt Strauss
[00:48:15] S1: Support for the show comes from CrowdStrike. AI is already fundamentally changing how companies build products and run their businesses. If you listen to the show, you probably already know this. But while AI drives innovation, every new model and agent also creates new cyber security vulnerabilities. That's why CrowdStrike built AI Detection and Response, or AIDR. AIDR helps organizations discover where AI is being used, monitors AI activity at runtime, and helps teams detect, investigate, and respond to threats involving AI systems. As companies adopt AI, security has to be built in from the start. More than 70% of the Fortune one hundred trust CrowdStrike to protect their businesses. Now CrowdStrike is helping secure the AI era. You can learn more about AI detection and response at crowdstrike.com/decoder. [00:49:21] S4: So I was looking at our past conversation just before I started, and you are an all star champion of not talking about your competitors. So I'm just gonna say there's a red company, and let's call it a blue company. And the the... You can guess who they are. I can just tell you [00:49:35] S5: who they are. Okay.
00:49:35 · Matt Strauss, Nilay Patel
[00:49:35] S5: who they are. Okay. [00:49:36] S4: But there's a red company, and there's a a new blue company that just consolidated. They're hypothetical. Yes. The red company is going through some tumult. They were built on we want one extra minute of your time. They were built for the attention economy. They would famously say things like our only competition is sleep. And they've added things like video games and podcasts and it doesn't seem to be working for them. If you ran the red company, what would you do? [00:50:04] S5: Well, I think the red company in my opinion is an incredible company. I think they've done an unbelievable job. [00:50:12] S4: This hypothetical company is doing Well, such a good
00:50:12 · Nilay Patel, Matt Strauss
[00:50:12] S4: This hypothetical company is doing Well, such a good [00:50:15] S5: think that every company goes through changes but I don't think that I would lose sight of what they've built And you've got some incredibly smart people in that company and I would not bet against them. I think that if anybody could figure out how to continue growing share of time, think the red company, I think that they are poised for continued growth. But that to me doesn't mean that there's a winner take all. It's kind of like broadcast. Like when there wasn't one broadcast company, there were four broadcast companies. There wasn't one cable network. There are dozens of cable networks. And so I don't think somebody else has to lose for us to win as a company. And so let me give you an example of what I mean about how I think of growing share of time. And the way I would think of it, Nilay, is don't think of us as a streaming platform. Streaming to me is too limiting. Think of it as an entertainment platform. And on this entertainment platform, you've got tens of thousands of hours of premium video content. And you can watch what you want, when you want it. And there's also, again, all this great live programming as well. But what we do, in my opinion, with this premium content is partly fueling the share of time that's happening off of my platform. So take an example like a show Love Island.
00:50:15 · Matt Strauss, Nilay Patel
[00:50:15] S5: think that every company goes through changes but I don't think that I would lose sight of what they've built And you've got some incredibly smart people in that company and I would not bet against them. I think that if anybody could figure out how to continue growing share of time, think the red company, I think that they are poised for continued growth. But that to me doesn't mean that there's a winner take all. It's kind of like broadcast. Like when there wasn't one broadcast company, there were four broadcast companies. There wasn't one cable network. There are dozens of cable networks. And so I don't think somebody else has to lose for us to win as a company. And so let me give you an example of what I mean about how I think of growing share of time. And the way I would think of it, Nilay, is don't think of us as a streaming platform. Streaming to me is too limiting. Think of it as an entertainment platform. And on this entertainment platform, you've got tens of thousands of hours of premium video content. And you can watch what you want, when you want it. And there's also, again, all this great live programming as well. But what we do, in my opinion, with this premium content is partly fueling the share of time that's happening off of my platform. So take an example like a show Love Island. [00:51:40] S4: Wait, so let me actually ask you about the Love Island. I'm only interrupting you because we've only got a few minutes left. Is it a win for you when the clippers clip Love Island onto TikTok?
00:51:40 · Nilay Patel, Matt Strauss
[00:51:40] S4: Wait, so let me actually ask you about the Love Island. I'm only interrupting you because we've only got a few minutes left. Is it a win for you when the clippers clip Love Island onto TikTok? [00:51:50] S5: So it's a win for me in the sense that you're growing more share of audience. You're opening up the sales funnel. If somebody sees that clip, they may have a higher propensity to then want to tune in and watch it on Peacock. And so that would be the benefit. [00:52:06] S4: Does the Love Island marketing team clip their own show onto TikTok? This is one of my beliefs. We do. This happens a lot.
00:52:11 · Matt Strauss
[00:52:11] S5: We do. And so we make our content available on almost every platform because again, you've got to go where the audiences are. You can't, I think, be so I don't know. You can't go in with an assumption that you're going to be a closed ecosystem and everything has to happen on your platform. I think you've got to go where the viewers are. But in my opinion, our platform should be the best place to experience the content. And so let me use Love Island just as an example to build on the point that you're making, which is that was the number one show for the summer. It was a bit of a phenomenon. It's a good reminder that must see TV still exists. The appointment TV still exists even with younger demographics. Love Island was also an interesting show because a very high portion consume that on mobile devices, which might seem obvious. But in a world where you can watch on a 60, 70, 80 inches television, you still have people who are very comfortable consuming that content on just mobile only devices. And so what happens? Somebody watched that show and it was on six days a week. And then when the show is over, what we do and what every streaming service does is we say, oh, you like this show. You should watch another show. And we try to get you into, you should watch Real Housewives. But that's not what a lot of these viewers wanted. What they wanted at the end of the show was they wanted to talk about what just happened. So they leave the streaming platform. And then they go to social media, or they'll look for a podcast or they'll even play a game. If you could play a game, the number one app by the way over the summer was the Love Island app. It was not ChatGPT. It was not Claude. It was the Love Island app for several weeks of the summer that speaks to what I'm describing around these fandoms. And so we are creating this demand. But then I would argue we're not doing a good enough job super serving them. And then we are fueling this dark matter engagement, that's what I would call it, on these other platforms. And so this is what's leading us to say, Okay, well, what if we put the clips on Peacock and we offer it in a vertical video format? What if we create a podcast for Love Island? What if we create gaming? But it's not any game. These are games that are derivatives of the fandoms and the content that we have on our platform.