The Future of Hollywood — ft. Ted Sarandos

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CRM, accounting, inventory, e-commerce and more. And the best part? ODU replaces multiple expensive platforms for a fraction of the cost. That's why over thousands of businesses have made the switch. So why not you? Try ODU for free at ODU.com. That's ODU.com. There we go. So I usually start with a joke. I was trying to think of a streaming

joke. I'd choose joy. I broke up with my first girlfriend because she claimed that Netflix

was the lowest price streaming media company and I just couldn't have a relationship with someone who was a Hulu cost-an-ire. Who will cost? Yeah, they get it. All right, you want a dick joke? Is that what we're looking for here? And I just have this sinking feeling my girlfriend has a dick. It's just something I feel inside of me. Welcome to Prop 2 Part 2 Live for my San Luis. That's good.

So I'm very excited to have this, we're seeing leaving.

“It's very good to be here here in Los Angeles known as the center of Hollywood. That's what a”

lot of people think of LA. But it's also the center of very exciting new technology. And before we like to begin, I'd just like to share some numbers of my own, I love data Scott. On that technology in this historic city's relationship to it. So before we start, I just got to give you a share some data here. So this today's number the first number is 3000. That is the percentage increase in California's GLP 1 prescriptions in less than five years. The next number is 1 in 10. That is the

share of California's who currently use GLP 1 drugs. The final number is 1.6 billion dollars. That is

how much the state of California spent on Ozenbick and we're govy in one year more than the

“entire state park budget. Very impressive numbers Scott, you know, I think maybe half of these”

people have probably lost their jobs to AI. But the one thing that I can see, looking at the audience, is everyone is very hot and very thin. So let's just give it up for the crowd one more time. The city of Los Angeles. And then we're going to start getting into the show before we do that. Can you talk about GLP 1 sisters? So seriously, I think GLP 1 is going to be bigger than AI. And AI is basically fearless of product. I'm so fucking awesome. I created this monster that's

a bunch of Russian horrors. That's not helpful. GLP, it talked to anyone who's on a GLP 1 or

“used in uses AI every day and asks them what's had a bigger impact on their life. And while the”

incumbents and the current seniors or incumbent industry or politicians want to create this illusion of complexity around how difficult it would be to solve our problems. Whether it's inflation, weakness, a lack of optimism for the future for young people, it comes down to our deficit. The easiest way, absolutely the easiest way to solve the deficit problem would be the following. In Japan, they spend $5,500 for consumer on per capita on health care. We spend $135. We spend $8,000 more

than Japan on health care. I'm 350 million people you're talking about $3 trillion a year in incremental

health care costs. Why? 40% of America is obese, 72% are obese, are overweight. In Japan, 4% are obese. If you wanted to solve the deficit, you would go after the health industrial complex, hospital systems, kidney dialysis, statins, pharmaceuticals, and just to piss off people on the left, the diabetes industrial complex is trying to convince us that people on obese, they're finding their truth. No, they're not the finding a fucking ventilator. Obesity is the menace in this society.

And we have, we have a way to solve it. America should put out, the government should put out an

RFP for a billion doses of GOP-1 and give it free to any household, in any rural area,

making less than $60,000 a year. You would see slowly but surely our health care costs go down. And for the first time, we could really significantly address our deficit. But instead, the incumbents want to convince you that it's not a solvable problem. GOP-1 is the technology that could revolutionise the West. Back to you, Ed. I think you're preaching to the choir here. So we're going to have on this screen a QR code if it's going to come up at a moment. Yes, it is.

“And at the end of this show, we'll do a Q&A and we'll hear from your questions. So if you want to submit”

a question, scan that QR code and you can do that now. And now that we've got all the phones coming out, good, we're going to have lots of questions. This is going to be fun. I know we've done that. I'm going to move us on to our first story of the evening. So we are live in the entertainment capital of the world. Here in Los Angeles, movies and TV generate more than $115 billion every year and support nearly 700,000 jobs. Hollywood doesn't just drive culture here, it drives the economy

itself. However, the industry is at a turning point. AI is rapidly changing how films are made, and at the same time, the traditional media model continues to erode. Last year, the combined viewership of broadcast and cable was surpassed by streaming for the first time in history. Meanwhile, short-form video continues to surge as well. So, the big question that is hanging over this city is simple. What will the future of Hollywood actually look like? Here to answer

that question we're speaking with the man at the center of the industry. Ladies and gentlemen, please welcome Ted Serrandos, the co-signo of Netflix. Thank you for being with us, Ted. Thank you for having me. I hope you want to fend it by school. I'm glad the joke portion is out of the way. He was covering his ears. I was just hearing about GOP-3s now, so which is very LA that we want the

“next thing. The next thing. The more advanced one. Yeah, is that the one that gives you a head of air?”

If I had your hair, I'd be like, if I had his hair with my wrap, I'd be the number two leading in the polls for the Democratic nomination. Look at that hair. Yeah, that's the problem. Yeah. The hairline away is on. Exactly. I like your checks. All right, so we're going to get any of the questions here. Ted, I'd like to start with something I think is on everyone's minds and that is the maybe acquisition, then not acquisition of one of brothers discovery. Just to jog everyone's memory

back in December, Netflix had agreed to buy one of brothers discovery or at least the studios and the streaming assets for $83 billion. At that point it started something of a bidding war with David Ellison of Paramount. There was kind of a lot of auctioning happening and then eventually

David Ellison bought the company for $110 billion. Netflix decided to walk away. So first question to

ultimately deciding to walk away from the deal? We looked at Warner Brothers as an asset, kind of a

once in a generation asset, a pretty big section of every movie ever made in that library. Really great production company that does television production or one of their biggest buyers in that space and a wealth of IP that we could develop into. I'm very proud of the team and a very proud of what Netflix does but we've been doing it for about a decade and they've been doing it for 100 years. So for us it was being able to accelerate our existing business model, our success story with or without it

and we figured out what the price point was and one of the things that I've been doing in Netflix since the beginning is valuing content and figuring out what is it worth to us? What is it worth in the market? We did all the work, we came up with the price point you talked about and we thought that's what if we can buy it for that that would be good for the business, good for our shareholders,

“good for our members and but a price significantly higher than that it wouldn't be and I think”

typically when people get into these deals it's a lot of emotion, there's a lot of ego and you don't want to lose, you put in a lot of work and when they came back with this significantly higher price point it was more than we were willing to pay and we just we said no. A lot of ego sounds right and I guess we have built to where we are today organically and we have tons of headroom to keep continue to do that and this would have just been a little quicker at home. So there's a scene in

Star Wars where Jedi Master Obi-Wan Kenobi says he feels a disturbance in the force because the planet of Alderon is literally exploded. I felt a similar disturbance in the force and the creative community when the Allison's got a hold of this and that's my way of bridging into AI. I don't see on any rational multiple how they didn't overpay. My understanding is you walked away

because it got sort of a certain altitude you weren't willing to engage in. You have the second

largest infrastructure company in AI now owns arguably largest media company in the world without speaking just specifics you don't know the strategy I don't know the strategy but aren't we about to see quite frankly and last there's some sort of magic growth that I certainly don't see the only way they can justify a price like this is quite frankly to find efficiencies which is Latin for layoffs. It feels like this space laser of AI someone is going to try and figure out a way to

reduce the creative inputs into these movies of 67 or 80%. But what do you think the odds are of AI coming not even at Hollywood but at the creative community in general. Do you think the fear is

“overestimated underestimated? I think it's overestimated. I think like every other technology”

advance in entertainment and storytelling it's made the business better and bigger by getting presenting more opportunity. I think creators today are going to use it. I've seen this evolution from the beginning of friends who are writers who said we're going to do everything we can to stop AI it's going to destroy our careers to the point where they're using Claude as a writing partner today and but they basically use a train that to say this is how I write this is how I think about

character this is how I move story here's everything I've ever written now you're not allowed to write anything for me but you can you can bounce ideas off of me all the time all day long and it's been makes them a better writer they believe it makes them a better writer. It doesn't replace a writer's room because a writer's room will come up with a couple of good ideas a couple

“of interesting ideas a couple of original ideas AI is not built to do that ever. I mean the the”

tool itself is built to give you the most predictable outcome possible the antithesis of what we're trying to do when you make a TV show or a film so we'll will AI help things I look at things right now of how we're using a production today things like previs so even just think about the technically working out a very complicated stunt shot before you do it which increases the safety on set I mean people forget that people die on these productions all the time and so these kind of things

are making the business a lot more efficient with something and again I don't think it's meant to replace any creativity I don't think it's designed for that and it's best day I won't do that and if somebody says well what about if you need a script you don't need a script that's surprising you've seen these you know these hallmark movies and these kind of things they want them to be predictable well the cost of the script for those movies about one percent of the budget

so it's not a gigantic savings for anyone to do that or pursue that so I'm actually much more excited about the upside and the potential of the technology that I'm worried about it's going to

displace creatives so we always make a prediction at the end of the show very long on human creation

so at the end of the show we always make a prediction and two years ago I made a prediction

that Netflix would merge with the large entertainment company and become the biggest media subscription company in the world except I predicted it was going to be Disney I like a Disney it stock is below where I was 10 years ago and I see a combination between Netflix and Disney where you would take your unbelievable IP you know K-pop demon hunters Wednesdays stranger things rides verticalize and what is a singular park's business and then you you would own family

and adult you'd be the largest of and quite frankly I wouldn't want to break up I don't think

“that I don't think I'd merge or should ever happen because I think it would like these”

mergers I know you don't know we're going to talk about inflation later but corporations have

been able to consolidate and charge everyone higher rounds but that's a longer talk show but you could

get it done in this administration thank you but you could get it done in this administration would you ever consider do you or let me put it a different way academically do you see the industrial logic behind creating this unbelievable vertical juggernaut with your IP their distribution with parks and owning subscription across family and adult to me that just makes all sorts of industrial logic look I think the right now one of the big benefits we've had as a brand

from the beginning of time we started mailing DVD is just around the US but back then we carried every single thing ever published on DVD so we had over a hundred thousand titles to choose from on Netflix so we were a kids brand we were a art house brand we're a documentary brand

and because of personalization we really were all those things to all those different people

so we didn't really pigeonhole or self so when we say what's a Netflix show it's your favorite show it's really not like you know Disney is going to have a very hard time getting broader than a family brand they're very very good at it they're really great at it but it's very difficult for them when they try to get too broad and we are a general entertainment brand just because it's in our DNA and we got very good at serving all those individual audiences

and personalizing the experience in a way that they didn't really have to and most company most entertainment companies don't HBO has got a very specific brand you know people say well it's an HBO show it's a prestige television that's all but it's pretty narrow and they've

“never been able to get into the family business for that reason and I think our advantage is is”

that we are a broad where a broad brand and not just casual but we're actually I would argue best in class and all those categories so I think that's helped us not need to do the things you're talking about now do I want to someday be in the parks business I'm not sure but we're doing right now we're looking you know we're opening we open one in Dallas one in Philadelphia Netflix house which is a hundred thousand square foot entertainment experience that does all those

kind of things but it's a night out it's not where you go on vacation and that's we're kind of toe dipping on some of this stuff then the consumer experiences we have a live tour coming up of K-pop demon honors that kind of thing so it would accelerate that for sure but that's a very big transaction you're talking about and we're really not like we're not seeking you know to do go out and buy things we built everything we're much better builders than buyers I think

and I think like I said that the one brothers aside because it was a very unique product didn't have all the things you don't want it in that deal and it did have great IP and it was a if at a price point we'd have closed on it but just I don't I can't think of any other thing like it Netflix is one of the largest streamers in the world it's certainly more popular than Disney plus Paramount Hulu there is one other someone called a streaming service though which is

very popular and that is YouTube which is actually dominating in terms of television viewing time how do you think about YouTube do you think of YouTube as a competitor and if so what is your approach to competing with them? I look at anyone who you pick up your remote control and decide what you're going to watch as a competitor and I think into to your point if people are watching YouTube on television I think we compete with them for that time and I don't think we compete with them

directly for that type of content or that kind of engagement but definitely for that time spent and I think the beauty of every advancement of entertainment is it keeps ratcheting the bar up and everyone has got to compete for the next thing so with people are interested in this you

“got to get good at that and you have to keep doing that I think we think about how back when”

broadcast television was just broadcast television and then there's cable channels and then there's cable originals and then there's premium page channels and there's premium originals and they keep

going to produce an HBO caliber show like House of Cards was pretty on on thought of so the but I think this is kind of the same thing will people step into YouTube because it's a very easy entry point to develop their stories telling skills and will they find that that the modernization there is not quite what they want it to be if they've got bigger ambitions and will they go out and look for other things Netflix perhaps or another streamer another network all those things will happen

and it's all just part of the landscape of how people are watching and it's not I'm frankly fascinated by watching like for me if I watch Saturday night live on Sunday morning on YouTube am I watching NBC am I watching YouTube or am I watching Saturday night live so we competing with them

“I'm sure we could I if I was watching as NBC of course we're competing yeah so I think so”

we're just we're trying to constantly win those moments of truth when you sit down on the couch and pick up the TV press the button to discuss where you're going to watch I've got to entertain you one thing you didn't mention on that point you're competing with YouTube when you pick up the remote and you turn on the TV increasingly people aren't even doing that they're taking their phones out and they're scrolling on their phones and for young people for Gen Z we're spending around eight hours

a day on our phones to me that's eating into content time that's eating into watch time and something we've been talking a lot about on on on on the show is the idea that clips seem to be taking over short form content it seems to be kind of king at the moment do you those are obviously dominated by basically Instagram you can argue YouTube shorts kind of and TikTok do you think of meta and TikTok as competitors as well if they're doing it on the TV I do I don't know

“I would tell you this I think that people what's really remarkable if you look at the”

consumption of professional content TV series films on phones it's that consumption has been remarkably flat for about seven years now so what you are seeing a lot more video on mobile but the professional content on mobile is about two percent and it's been steady and what's more

remarkable amazing is through the entire advent of the internet and tablets and phones and YouTube and all this

all these free options even that television consumption and movie watching on bigger screens is remarkably stable too so people are multitasking there's all these to you know do describe this to make it make sense yet to think well how is that possible well they're doing it at the same time and so and I do think that there's one of those things we say well people don't have the attention span for TV anymore well with of the new season of Wednesday comes out

and people sit in further TV watch eight hours of Wednesday happens every season so the good news is in 2008 I bought Netflix stock for $12 a share

“there we go yeah but wait now now you listen everything he says so it's I think I'm going to split”

it just as basis it's now at 700 the bad news is I sold it three months later at 10 bucks of share for a tax loss I literally want to find a time machine so I can go back to contract my

ask down kill me and then kill myself anyways just think about your stock is up I think 850 percent

in the last 20 years the last five years it's kept pace with the S&P but it hasn't out performed in the last year's been not a tough year but you're a CEO of a public company and it's very much what have you done for me lately and I think the general sense is and you tell me if this is not correct it's a clip economy that that is talking about it's just I mean the fear is the people are ages we don't know what we don't know and what I see with my kids and I think unfortunately

right now the most powerful force and media I would argue is probably Instagram reels and that is our brain we have a generation of people being wired to consume content in 60 and 90 second format you now have including debt the acquisition passed up you technically after I heard you were

passing I texted him I got 112 billion dollars to go plan traffic now it feels like you do need to

inspire some more growth you're you're still growing but I doubt you think of yourself as a mature company and your growth your growth is still solid but not the growth it once was without 112 billion dollars where are you going to find growth as it continuing to do what you do or do you have do you have other ideas about new businesses you're currently not in well look we're about 9% of total TV watching right now in the US and our most mature market we're about 45% penetrated

in our addressable markets and growing that penetration and growing share in what we're doing is a big

grew our growth margin by 18% we've got a guide out for this year you know for this year to be 12 to 14% growth and 31 and a half percent margin we also have a doubling of our add business

to three billion dollars this year so we've got a lot of growth on the horizon what we're doing

because we've just had barely scratched the surface what we're doing you know it's it's remarkable to me and some of these TV markets around the world that we're you know we're still in our infancy in a way so we go out and see and if I worried a little bit about what you're saying I obviously we follow consumer trends we see what young people are doing and then having tried to distinguish what will they do when they have more money in less time which is generally

how these things evolve and it's part being part of their media landscape is really important and they may use they may use the phone to get excited about something you saw that we just read it our TV why but we also read it our mobile UI and added vertical video not to get people TikTok but to be more discoverable in a format that's more native to younger people when they use their phone to find things and be ease of use of going from this you know from the vertical

video on the phone to the actual presentation on your TV is really what we're focused and there's a lot of growth there you don't you don't see a need or an opportunity to take your content and slice it up and some sort of new using new technology and create or play in the short form video

“space I mean we can but I think like I said I don't know there's a lot in on the phone there's”

an enormous amount of competition for your attention on that phone and a lot of it is free some was all free so but I'm looking for is the most valued moments of truth I'm looking for that entertainment worth paying for you know we first started back on before you know but from DVD and streaming our big mantra was we are contest be better than free because at that time piracy was the it was the competition and we had to be better than piracy we had to give people reason

not to steal because we're so easy to download back in those days so that was always been our focus

we have to be we're super consumer focused business inner we constantly are looking at how we're entertaining people we look at the metrics into our internal metrics out we great ourselves on how we're entertaining people on things like you know how do they complete how fast do they go from season one to season two do they tell a friend are they post about it do they give up two thumbs up all this internal is always focused not on the quantity of watching as much as the quality of

the watching because it has to be good enough to pay for on this idea of I mean Netflix is sort of

“the premium product it's better than free I think everyone agrees on that but there was a”

controversial decision that you made back in 2022 that I think you did not support which is that you launched to ask I had launched advertising it seems to have been an enormous success ad revenues on try to double two three billion dollars more than 250 million ad tier viewers talking about the decision to implement advertising in Netflix a lot of people said no this needs to be a premium product we don't want advertising on platform but at the same time a lot

of people use it a lot of people seem to like it well look I one of the things I figure out as we go is people have completely different opinions of what's what they want and how they want it and what's premium to them and what have they defined it and the one part of the audience that we were not addressing was the one who wanted a lower price point and didn't care about ads and there's a lot of them it turns out and particularly if you talk about young people who

grew up mostly watching ad interrupted content constantly so for them it wasn't completely different thing the reason we were so not in the advertising business at the beginning was it was kind of a classic counter position move you know when we first got into DVD our competition was blockbuster video stores what did people hate about video stores late face so we were the no-late fee company we were total total counter positioning so we get into streaming we're in the TV business

what do people don't like about TV back then what were they complaining about advertising and having to wait till next week for an episode so no advertising everything it wants great

counter position and over time how does that evolve and we always fancy to ourselves a choice

company we want to give people unlimited choices well one choice was I would like a lower price and I don't make it but I don't mind advertising and we were not offering that so that's what we got into

“what do you think people are complaining about now that you need to solve over time I think”

if you give you it goes down the path you guys are talking about I think people will be complaining about AI sloping a few you know pretty soon could I think though look at things you can see it already you know people pick apart a movie poster on Reddit with every little you know the glitch in there in the in the system right because it is AI sloped I think it's gonna I think people will a bunch of I think they'll well turn on the AI slop and they'll really more even more value

man you've struck deals with I ought media ball stool and many other podcasts I just saw

today that you just signed a deal with Jay Sheffield he's gonna be bringing his podcast out of a

“to Netflix talk a little bit about getting into podcasting why is that the move now I think it's”

a great evolution of the format so we tried talk shows over and over again and I think the format itself is kind of given way to podcasting I think the internet has kind of stratified things everything movies are either gigantic or tiny you know what I mean and there's that kind of nothing in the middle anymore and I think with podcasts it's kind of the same thing around people's appetite to hear an interview with their someone that they're interested in they really want to hear

this long free form interview that with their no makeup and guard down just a real casual conversation and they're not really they don't care how long you know they'll spend three hours on these things sometimes or they want the 30 second clip of it but they don't want is the overproduced 7 minute couch interview on the talk show that they used to tune into every you know when I was growing up

45 million people on night used to tune into Johnny Carson and watch and so the whole country was

into that uh today as you see the late night ratings are not what they used to be it gets chopped up into clips and people are mostly watching and social anyway so and I look at this and say well

“that we weren't doing was this new generation of talk shows and I think we're seeing we're very”

small in it today we're moving is very rapidly on a Jay Sheffield he was kind of the big deal today because it's moving from YouTube to Netflix and Spotify and the what we're seeing in the very early days that's very promising is that people are watching and they're watching during the day where they tip we're streaming usually doesn't take place much and they're watching

more more mobile than they used then they're then we're used to seeing another for another kinds of

programming well if you ever want to acquire a podcast with a strain for a faster and a guy with a weird accent yeah yeah yeah yeah yeah I think you're inside on podcast it's just just genius remember the old like podcast we've put now video podcast now when you ask someone to be on the podcast they got to get dressed up they got to go they got to get in the talk show everything's turning into two things of touch show exactly I'm glad we don't I don't need hot wings to sit here it's nice

so you could live anywhere you want I mean you could be the coach of Netflix or anywhere you have in the way your industry is set up in the dynamic and then kind of the current so you have in the marketplace and you choose to live in L.I. and I find I don't know because of social media but I find all the shit posting of cities on the west coast is just so overdone I was in San Francisco yesterday I was in the Hellscape of San Francisco yesterday and just kept thinking this place is beautiful

and then and by the way as out of the GDP of Europe since World War II in the last 18 months and then you come into L.A. you fly over the Pacific coast you got in an Alberta you see this collision of creativity the Uber drivers are hot and just an insight yeah everyone is so hot here anyway you you choose to live in L.A. so I'd love to hear just your views on why you could live anywhere and despite the very real problems the L.A. faces you choose to live here and also just what advice

and I'm sure you've been asked by the governor and other people what do you think L.A. could do to ensure I mean the creative community I don't want to see has been gutted here but there's now more spending in production and Vancouver in Toronto there is an L.A. so why do you personally choose to live here continue to live here and to what advice would you have for city officials and government

“and federal officials to try and reaver recapture some creative creative juice here?”

yeah look I've been I've lived here for going on close to 30 years California is a great state Los Angeles is a beautiful city has a lot to offer it's a little broken it's very broken actually I'd say that we've been very slow to recover from COVID I think we've had this kind of over last decade or so this kind of pull away from production in Los Angeles and the a lot of the creative culture that is here because people are here creating they're here making California has not

been competitive for production not competitive with other states not competitive with other

or making a TV show and I'm telling you that firsthand because we have 30 productions in California

this year mostly in L.A. I have a 200 million dollar movie here that a big chunk of it is because

“we're doing in L.A. they'd cost that much and I think whoever is going to be the next governor”

whoever is going to be the next mayor has got to invest in competing for production in California please and more than that in Los Angeles you've got to streamline the systems if if I get in a car to film a scene and drive from Venice to Beverly Hills to Los Angeles which without traffic you might be able to do in 25 30 minutes I need three different permits with three different schedules three different

fees three different deadlines of what I have to file for them it's it's all that it's that times everything you do here and as an example of a counter example we're investing we're building a big studio in New Jersey they they put up the probably the best production incentive in the world not in the country in the world to and and that pulled a lot of work back from international production back into the United States kept jobs in America our our our our our our productions

in the last 10 years of creative 150,000 jobs so but it's like 325 billion dollars of economic

impact from our original productions just Netflix so this is a real industry and being able to compete with those industries as coming in and doing anything else at that scale creating that kind of employment having that kind of economic impact municipalities would be you know knocking each

“other out to get that business but in California I think we probably just took it for granted that”

the crews were here the talent was here everything was here and they let the infrastructure get pretty long in the tooth and they let Georgia and other places get really good at crew building so it's not you're not really taking a sacrifice to make it somewhere else that appetite that hunger to stay in the game I don't know why it dissipated but it did and like I said the next governor is going to have to address it and I think the next mayor has got to not only look at

everything that makes it hard just really sit down I hear everybody complaining about everything that's wrong about this working in this city and I had very few discussions with the decision makers that have fixed it and I'm happy to do it I asked for it all the time I offered up all the time but I haven't seen much change. Trying to be without thinking get through too much this is not an investor question you don't have to think about the stock price. Whenever I talk to you

I try and pitch you on starting a TikTok competitor and you just sort of like humor me and then we end up talking about your kids. What advice would you have in terms of what you've gotten right and what you've gotten wrong or the learnings trying to be a good partner good husband and a good father. We're brought up to be to find this thing called life work balance to figure out what's the

“exact amount of right balance between how much time you have to dedicate to your wife and to your”

kids and to your house and to your job and the truth of it is there is no such thing as life work balance. There are times that you have to be intensely in the game at work and people and you realize that when you do that you have you create tension at home and then you're going to have to come back and reinvest in that and make sure that people know that you had to go away but you're still here and you're still here for the supporting them and loving them and hearing them and that I just

but I'm going to be really tied up for a couple of weeks or I'm going to be really tied up for the next couple of days and and understand that it's a you have to make deposits in all and all those things all the time and don't kill yourself trying to create this thing which is a myth I think which is that there's any such thing as a life work balance. Ultimately we're going to talk about kids thoughts on you know you want to be a good dad. Yeah right yeah learnings there

your kids are watching you all the time and I think they really are even if you think they're not paying attention they are and they're picking up the good and the bad and they're picking up the things that you celebrate they're picking up the things that you value and I'll tell you my wife was very very helpful for me when my kids were younger of saying they teaching me to say it's

just to say things like those are not our values because when kids always want to constantly tell

you they're well so-and-so can do it they can do well this isn't fair whatever you could say yeah that's just those are not our values and it was a revelation of a thing to hear and it's such a simple thought but kids really need to hear it and they deeply deeply want boundaries and I like many as a you know went through a period after after a divorce and a being a single

hard and I think that Nicole was really great for me and for my kids in introducing those ideas

“to us. It's a good place to end. Yeah Todd Surrandos is the coceo of Netflix. Thank you so much.”

We'll be right back. Support for the show comes from Odo running a business is hard enough so why make it harder with the dozen different apps that don't talk to each other one for sales another for inventory and separate one for accounting before you know it you are drowning in software instead of growing your business this is where Odo comes in Odo is the only business software you'll ever need

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try Odo for free at Odo.com that's Odo Odo dot com support for the show comes from Odo running a business is hard enough so why make it harder with it doesn't different apps that don't talk to each other introducing Odo it's the only business software you'll ever need it's an all in one fully integrated platform that makes your work easier CRM accounting inventory e-commerce and more and the best part Odo replaces multiple expensive platforms for a fraction of

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at Odo dot com that's Odo Odo dot com support for the show comes from core weave everywhere you look AI is expanding what we thought was possible and at the center of it all is core weave medical research and diagnosis education complex visual effects for movies science and technology breakthroughs core weave powers AI pioneers around the world with purpose built tech

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ready for AI to learn more about how core weave powers the world's best AI go to coreweave dot com slash ready for anything we're back with property markets so if you have an noticed gas has gotten very expensive sounds like they have noticed in the state of California gas prices have risen to more than six dollars per gallon and here in Los Angeles it is even higher it's six dollars and 12 cents unbelievable but higher prices aren't just a California story across the US inflation is accelerating

at a historic rate national gas prices arising at a fastest pace since 2022 and the personal consumption expenditures index which is the federal reserves preferred measure of inflation that just came out it just hit 3.8% which is the highest number in almost three years consumers are now feeling it the consumer sentiment index just dropped to an all-time low worse than the great recession worse than the COVID-19 pandemic the lowest score we've ever seen and the big question for

investors now is all consumers reaching a breaking point that's the question to ask yourself if you're invested in the market Scott I'm just going to rattle through some of the inflation data here so PC inflation I said it hit 3.8% highest since May 2023 CPI 3.8% PPI this is the producer price index this measures wholesale prices that just hit 6% inflation year of ES services inflation up 3.3 shelter inflation 3.4 energy inflation 17.9% gasoline inflation up 28.4% year over year

“I don't know if it's just me but I think it is fair to say at this point that inflation is officially”

done out of control or maybe I just have Trump to range from syndrome and I'm just reading

where it starts our solutions people think when you're unemployed you depressed but when you're actually

“what causes a revolution or a change in a society is when you're working to jobs and you're still hungry”

and if you think about inflation it really has been fairly pernicious if you're not making more if you're not making 25% more than you were in 2000 between inflation and a lack of strength in US dollar you're behind what you essentially have is a transfer of wealth from earners to owners because if you're making $100,000 a year working as a makeup artist and Hollywood and you aren't making 120 with by within five years your quality of life has gone down

but meanwhile the person who owns assets owns a building owns real estate in fact they're just

fine so again it's another transfer of wealth from the earners to the owners now the problem is

well okay great what do we do about it it's the boring stuff that moves the needle and we don't want to have an adult conversation about what's required to reduce inflation we're spending $7 trillion on five trillion in receipts in our government essentially inflation is too many dollars facing too few products and when you're spending $7 trillion on five trillion you're just going to have inflation it's really in government spending which is going to cause

a lot of pain and quite frankly it probably means kissing and making up with China and figuring out a way to have the probably the biggest tax cut in history would be if one we kissed and made up with China because you're going to I mean 88% of our toys under the Christmas tree are from China these tariffs are just it would be it would be difficult to think of a more elegant way to raise prices across the board than tariffs that's just literally

I taught macro and micro economics when I was a graduate school in Berkeley and we used to use tariffs as an example of how just fucking stupid they were 100 years ago I mean we were just so

“inflation is literally how you start a revolution and I think it's already happening I think we're”

having a small the number of small forms of revolution but it requires an adult conversation around long-term policy planning which America and to be plant American voters just don't want to have but this is how societies fail and on the other same time you're protected from inflation if you have if you're earning more money because you can decide to downgrade your purchases and this is the other big problem that we're about to see if inflation is rising you could decide and you're

making a lot of money okay maybe I won't eat out tonight maybe I won't order the beef tonight maybe I'll go for the chicken maybe I won't take that vacation you can really adjust your lifestyle in accordance with inflation for the lowest earners in society you're already at the floor I've suspended and you can't downgrade any further the floor just continues to rise and that is exactly what we saw in 2022 where for the lowest earners in society inflation actually rose 8% faster

than it did for the rest of us than it did for the average of the CPI again because they couldn't make any lifestyle adjustments they couldn't do that now on the policy point you make the good

“point that there are a lot of you know complex and important discussions that we could have on how to”

reduce inflation how to prevent this and most of the time I'm in agreement we need to get people together we need to get a think tank together get all the expert economists and figure out what are we going to do about inflation on this round of inflation I have two ideas on what we could do one what has been the most inflation or anything that we've seen in our economy today it's been one thing it was tariffs that added 1% 1 percentage point of inflation we were at 2% you added 1 percentage

point you got us up to 3% very easy fix there get rid of tariffs done policy solution

why didn't you use your solutions ever and then what was the second thing that this president did

the second thing that he did was in February he decided to launch this war in Iran he did not plan on how he would execute it he did not plan on what he would do about the straight-of-a-mouse he wouldn't plan on what he would do about the fact that gas now cannot get out of the straight-of-a-mouse and now gas prices are up 50% and what did that do it added again 1 percentage point to inflation so we were at two tariffs took us to three Iran took us to four the the federal reserves

target inflation rate is 2% I have two ideas to get us back down to two back to where we were

and it's unbelievable how we have manufactured this problem for ourselves we talk about the

inflation that we saw during COVID which was really bad and we should recognize that and we had a 99% inflation at one point but the reason that happened was because there was a pandemic that showed up which gunked up supply chains and then we had to figure out what to do about the fact that we couldn't get together in person that we couldn't physically interact with each other

“that's why you saw those prices rise that was the problem and it was something that we couldn't”

do ourselves we couldn't address it ourselves this one is all our own doing and I said to you before this reminds me of Brexit this is exactly what happened in Britain just decided you know what we're going to put up barriers and make life harder for ourselves those are the policy solutions for me and you give me hope I think you're wonderful that was perfect I have nothing to add about well one thing that we should also think about then is what our investors thinking about this

because we've talked about on the show inflation is a problem for the economy but the economy isn't necessarily the stock market and investors so far haven't been so worried about this inflation problem because ultimately stocks go up so at this point how are you thinking about inflation as it relates to the equity markets and how it could affect stock prices going forward America is now a giant bet on AI and that is effectively 93% of GDP growth and now 40% of the market

of the S&P is based on the capbacks of 10 companies that have made a giant bet on AI and they're not subject to tariffs they are I mean it's obviously an unbelievable technology they have access to

capital but the reality is the majority of us or the majority of Americans aren't

participating in the uplift of of the NASDAQ or the S&P and going back to the notion of

“revolution in this country I think that when you see people traveling 100 miles to protest a data”

center data centers are essentially become a vessel or a physical manifestation for income inequality and people are just incredibly angry because what they see is all I hear is that the NASDAQ and the S&P are going up all I hear about AI companies going public at a trillion dollar market capitalization and I'm trying to figure out you know I'm sitting there and I'm one of the 40% of US households you want to hear what's criminal about the United States right now the S&P is

on an all-time high you know housing prices here the average house has gone up I don't know I think 40% pre-COVID and 40% of American households have medical or dental debt and so you translate that down to a household that's that's a single mom who's 15 year old daughter wakes up in screaming tooth pain and has to go to the emergency room or emergency dental visit and has to borrow the money to get a root canal for her daughter I mean think about think about the the shame of

that right and we don't but we don't track medical and dental debt quite frankly who the fuck cares of the NASDAQ set them all time on when when our teeth so these we we we need different metrics and we need a dip once a metric becomes kind of universal it it ceases to be relevant or important but the general senses or my senses is that we are really I mean effectively we're returning to where the world usually is and where economies most economies have been for 99% of history

and that is a small number of hardworking talented fortunate people who sometimes garner a lot of the resources resources to inheritance create regulatory capture invest money we do it through citizens united in the government and start allocating and aggregating more more capital and they basically

“run away with the game so I but I do think we're out of breaking point here I think when six families”

own more wealth in the bottom 50% we've decided we're no longer about America and where I am and I'm a capitalist I believe in private property but the greatest economic growth the greatest positive sentiment America was in the 60 70s and 80s when incremental tax rate above a certain amount

were 60 70 and 80 percent and where I am is that I think we absolutely need to move to a point

and wrap up around happiness I think a lot about happiness and trying to optimize it and there is a

bad news the good news is according to Daniel Kahneman in Israeli American psychologist in a role model mine did a lot of research on the relationship between money and happiness and it tops out at a certain point where you can know in a home health care, take nice vacations, absorbent economic shock that's supposedly in America around $150,000 I think in LA it's probably more like eight or $900,000 but above that above that you get no incremental happiness so then the question becomes and what I

would put forward is why wouldn't you have say pick a big number over ten million dollars over three

or ten million dollars in income why wouldn't you have incremental tax rates of 70 or 80 percent because

“here's the thing the key to tax code is having taxes that at least taxing if you taxed health care”

food and I don't know health care food and say you tax education those taxes would be really taxing because people would become less healthy and less educated and more depressed but if you get no reduction in happiness making seven million a year instead of 12 but that incremental five million dollars can provide say universal or it's a child care for 500 homes their incremental happiness is enormous so I have become a little bit socialist on this I think it's time we have an alternative

minimum tax I'm sounding very I realize I'm sounding very I see here but I've come full circle on this I do think there's something to the notion of massively increasing an alternative minimum tax above a certain amount of money we also need to start shaming people who hoard wealth I just don't

“think it I just don't think there's there's no reason people should be worth what nation states are”

it's not going to make any happier anyway so it's probably a problem if you've got inflation rising at four percent to your point one in 10 American still living in poverty and at the same time this is the year if this space x IPO all goes to plan we'll see to trillion dollar valuation I don't

really buy it if it all goes to plan we are going to be the world the world's first generation to

witness the world's first trillion air in Elon Musk who we ran the numbers on this we looked at how much money he's going to have again if the IPO goes to plan we'll see he's going to be worth 3.2% of US GDP the richest American in history before Elon Musk existed was John D. Rockefeller John D. Rockefeller at the height of his wealth was worth wait for it 1.5% of GDP so Elon Musk is about to be more than double as wealthy as the wealthiest American

that has ever existed in John D. Rockefeller and at the same time we're experiencing this inflation at at the same time we still have huge numbers of Americans who are struggling who are struggling to put food on the table and then I think about my generation and why young people are so upset and why young people are going to these data centers and protesting them and the fact that half of us don't even believe in capitalism anymore they prefer socialism instead and this is essentially

what this entire podcast is about is capitalism it's about markets and increasingly we have decided that we no longer believe in that system we just want to opt out of the whole system

“itself the fact that those two things are true at the same time to me at some point you have to”

you have to acknowledge the elephant in the room you have to call it quits at some point acknowledge this is a problem we cannot continue on this path so I think that you're probably correct that we're moving in something of a difficult direction and probably reaching a breaking point stay with us when you're ready to start your business north west register agent helps you do more than just

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the next thing you know it's a thing canva the thing that makes anything a thing support for the show comes from odio running a business is hard enough so why make it harder with it doesn't different apps that don't talk to each other introducing odio it's the only business software you'll ever need it's an all-in-one fully integrated platform that makes your work easier CRM accounting inventory ecommerce and more and the best part odio replaces multiple

“expensive platforms for a fraction of the cost that's why over thousands of businesses have made the”

switch so why not you try odio for free at odio dot com that's odioo dot com we're back with property markets our first question is from Shane who is in seat h320 and Shane has a question about independent media where is Shane hi she's us yeah yeah yeah yeah long time listener first time caller just back from Iran right just back from Iran uh it's fucked up so as one of the sort of posture children for the

I saw a podcast that you guys did was amazing about the sort of death of independent slash

new media of which I get kicked in the face a lot for so I'd like to say it feels like we're heading towards a world where a handful of companies control what gets made what gets seen how it gets distributed and in that world independent media doesn't have a meaning so what do you guys think is the future of independent media and is there one and the sad that tames gone because I'd like to hold his feet to the fucking fire yeah you'll be the guy to answer I don't know what's got

thoughts on my I've made my thoughts pretty know and and perhaps I should have made it known to

“tad which is I think the future of media is one word and it's clips that's it I simply look at”

the amount of time that young people especially are spending on our phones it's coming out to around eight hours a day at this point if you actually annualize it if you can't up the days over the course of a calendar year the amount of time that was spending on our phones it comes out to a 118 days per year looking at the phone are we spend 122 days asleep which means that we have 125 days left over to do everything else with our lives to meet people

to establish relationships as God has talked about to establish a network people wonder why our young people underperforming why can't they get their act together something that I often say is like we're operating with 40% less time than our pairing still we just don't have as much time to live our lives because we are addicted to the phones to me that means that the only

“opportunity in media you have to go as hard as possible at social media as hard as possible at the”

phone Ted mentioned that he's thinking they're integrated vertical clips that is going to be sort of the way to get the marketing material to get you to watch the show my view is the vertical clips that is the main content that's where people are spending their time that's where you need to be invested so that's how we've thought about it with our business I mean we do this podcast and it's really fun to be here but honestly a lot of me is thinking what were the best clips from this podcast show

how are we going to get it out on social media on Instagram on TikTok to me that is the future and if you're a new independent media brand you need be thinking about how do I dominate the algorithm because if you don't do it someone else will and the people who have been dominating or not the best role models not the best people we want influencing the minds of young Americans so that would be my advice clips yeah I don't look I don't media is obsessed with itself and wants to go back

to the good old days I was called today and asked about CBS and my who cares about CBS like the average age of a CBS viewer is dead I mean it's just seriously the average age of

CNN viewer is 64 Fox and 69 CNBC at 64 and I see a lot of incredible alternative

independence buck semifur axios the guys of bull work are doing a great job I'm very open about

a year I do think there is probably a need for a BBC like tax where there is an attempt to have just straight up news that just calls it as it is and attempts to just in it's hard to do but attempts to call it you know straight down the middle if you will but I don't media tends to have

“I wish the Washington Post would just die already I'm sick of talking about it and I think a”

lot of those really talented reporters are going to find really good work in independent media companies we tend the media tends to think of itself is so precious and so self obsessed there is I think that there's just a ton of startups people now really talented people I interviewed a woman who just wrote a book called sexting section this morning Deborah so she's a genius and her ability to reach consumers now and you know the ability to start a media company

he basically just need you know two turn tables in a microphone Heather Cox Richardson who is one of my role models on sub stack she's not only a role model because of democracy for me

she's going to make 12 million bucks a year on substock this year right so you know good for her

and she'll hire people so I don't the death of traditional media yeah it's going away because it's fat and I go into Rockefeller Center to go on NBC and I see these huge buildings podcasts are essentially 80% of a television show for 10% of the price it's an arbitrage of the means of production where you can offer the vast majority of ABC News nightly I'm not as good looking as that guy but we can be unfiltered and we cost three five percent of what it cost to produce that show

“but I think media is actually I don't want to call it in a golden age”

I think there's huge opportunities to independent media and if you love if you love to write if you think you have a different view or spin on things fire up a podcast fire up a sub stack I think that you can make a you know it's it's really hard it was has been hard but you don't need to be as good looking which is which is nice anyway Shane I'm actually excited Shane you've got a great podcast I've been on your podcast

a couple times I think that I think it's a great business to be in and I think there'll always be

right now I think there'll be a there's still the future's bright for a great content and people who are fearless and hold you know neither fear nor favor around power yet another another question from Rob by Steve later Rob by leader in Ro Tripoli and Rob by Steve has a question about striving for the greater good I'm really happy to be here tonight and thank you for your leadership and enlightening us my question is in a society in a culture and

in a nation like ours whose DNA is individuality and autonomy and volition and whose politics are petty and course what are the mechanisms if any by which we can strive for and hopefully achieve greater unity in the common good what are the tools that exist in a culture

essentially built upon individuality and autonomy and volition we're going with the easy stuff first

do you want it like I know the answer I'll just let him do so by the way I'm a big fan of the rabbi she's been a source of inspiration and calmness for me through COVID and through so obviously very heated topic but I'm what Dan seen our calls in October the 8th June I have no connection to Judaism no connection Israel and I've become 110% more Jewish and in large part because of some of the things you've said I'm an atheist but I'm an atheist

but I do think we need more religious institutions and more church and attendance at temple

“and moss I think getting together and serving the agency of something bigger than yourself especially”

for young people with share value is really important and I say that as someone I don't have an invisible friend I believe in one less god than you but I just think it's been a real shame to see

our nation if there was one policy I could have and have a magic wand it would be mandatory

national service is is that screwed up as screwed up and as many problems as we have in this country

“I don't think young people really have any sense that the the best thing and the smartest thing”

they could have done was to be born in America and I think that even still and I think the way we create a sense of unity and some of that character you're talking about is giving young people the opportunity to spend time with people from different religions different political backgrounds different ethnicities different incomes and just see how incredibly wonderful other Americans are because I think

social media basically says what's your identity what are your political beliefs and then go to that

corner and the enemy isn't Russians pouring over the border near crane or income inequality or climate change the enemy is your neighbor who doesn't share your political beliefs so there needs to be a unity a greater unity around between all of us as Americans that's where

“I go thank you for the question rabbi I would also add just on that I think we're starting to see”

signs that that might actually be happening naturally if you look at church attendance among young people among Gen Z specifically right now it's actually started to go up and I was walking

through the streets of New York and I was in the West Village and I looked and saw a church on the side

and I saw a line of young people going around the block and extending for two blocks just to get into church on Sunday and I think what we're starting to see I mean I felt for a long time that we needed to institute some sort of policies to get us out of our screens get us off of our phones get us in rooms together with one another like we are today and I still kind of believe that we need to sort of push that along perhaps with some sort of policy but it might be happening naturally

and we're even seeing this I mean we talked the other day about the attendance and these in person sort of raves and young people getting excited about going to get going out to these run clubs and getting together I wonder if the pendulum is starting to swing back and if we can get to a place of community and being with one another naturally versus having to force it probably what we want us to do both but I feel optimistic about it let's move on to

Adelaide on floor two in road D where is Adelaide? I got hi Ed my name's Adelaide I'm 10 years old Ed great to see you again. So I just wanted to give him a little light everybody wants to see yeah Adelaide I got an assume with a few months ago Adelaide is 10 years old she's come all the way out to Los Angeles with her dad Adelaide I'm so glad you're here I just want to give you a round of applause and please continue in your question. Thank you very much Ed but you and Ed

represent two completely different generations for someone my age looking ahead what is the biggest advantage my generation has over older generations and was the biggest trap we need to avoid. Can I start with the trap? It's great to see you. I think the trap this theme has recurred throughout this conversation throughout the night the trap for your generation for my generation for both of us it is the screen it's the phone it's technology the amount of time that we are

spending in person with our friends has plummeted over the past two decades and people keep wondering why is that happening why aren't people hanging out with each other it's because we're not spending enough time with our friends it has been overtaken by the amount of time that we're spending on the phone and so there's a reason why one in five genziers today say they have zero close friends whatsoever the loneliness numbers are really bad throughout America but it's especially bad for

“younger people and it's because of the phone that is the trap that is the thing that you have to”

avoid in my view I hope Scott has talked about this we've talked about this I hope that maybe we can

young people off of social media as much as possible but it is taken over our lives and your

superpower could be to not let it take over yours so I just want to start with the trap that would be my recommendation to you and it's so good to see you thank you so much for coming I got the hard one I feel like if you're here it means you're here with your dad I think I mean you have engaged parents you're clearly an incredibly impressive

“young woman I I don't know I I feel like you should be mentoring me”

there's an I'll just end here because I don't have a I think you're this is going to sound

right but I think your ability to potentially be in service of others has never been greater I think

the young people can have such an impact on other young people and people they've never met with all of these new mediums and opportunities to communicate and get involved in other people's lives I wish I'd learned when I was your age how rewarding services I didn't figure that out told her and and with technology you can inspire the kids and communicate with them so I would say it's on strike but service but let me go back let me just indicate or out my generation the way you

express there's something called your love language and it's it's it's acts of service acts of

affection gift giving dudes of my generation and men my age used to do this to me my love language is money can I give you a bunch of money to take your dad out to dinner while you're here

“the answer is yes you should say yes I'm just telling you you should I was $34”

thank you last year in the list this episode was produced by props to you media thank you for joining us live in LA make sure to follow us on YouTube Spotify where you get your podcast we have to see you again soon good night everyone thanks again to Odu for supporting this show Odu wants to be your ultimate all-in-one fully integrated platform to handle everything seriously everything inventory CRM accounting HR and much more

no more shopping around or settling for expensive services that can only handle a fraction of your business thousands of businesses have made the switch so why not you try Odu for free at Odu.com that's Odu.com support for this show comes from Odu running a business is hard enough so why make it harder with it doesn't different apps that don't talk to each other introducing Odu it's the only business software you'll ever need it's an all-in-one fully integrated platform

that makes your work easier CRM accounting inventory e-commerce and more and the best part Odu

“replaces multiple expensive platforms for a fraction of the cost that's why over thousands of”

businesses have made the switch so why not you try Odu for free at Odu.com that's Odu.com support for this show comes from Odu running a business is hard enough so why make it harder with it doesn't different apps that don't talk to each other introducing Odu it's the only business software you'll ever need it's an all-in-one fully integrated platform that makes your work easier CRM accounting inventory e-commerce and more and the best part Odu replaces multiple

expensive platforms for a fraction of the cost that's why over thousands of businesses have made the switch so why not you try Odu for free at Odu.com that's Odu.com