Endeavor CEO Ariel Emanuel | Full Interview | Code 2021

[Music] so ari just told me he loves spinning i want this in my bedroom i don't want this in the so i'm gonna i was i'm just gonna change my shoes for this interview if you don't mind do it um i think i think these are more appropriate okay for you oh i love that i know i figure screw you i'm just going to put them right here actually i'll leave my shoes on they made me think of you every time that's sweet um so the reason he's not here he wasn't here yesterday is because he bought something for 1.2 billion dollars yeah so why don't you talk about that first open bet okay what's the thinking behind it well um we're in the sports business we were we are in the gaming business in the data and the video feeds on to 470 bookies around the globe and it was inside one of our verticals which is events experience right and we really weren't getting credit we we represent 150 sports we own some sports that have gaming around them it's an area that is growing significantly around the globe and we have big competitors in that space we've always said in our strategy in m a um that we would build moats around our business this became available because of when they bought scientific games off of mr perlman they had to reduce some of the debt and it just filled all the verticals that we needed having a complete stack in this space whether that be um uh you know players uh whether that be um all the different things that you need in that when you go out to the bookies around the globe and so it was a perfect fit with us it puts us at the head of the line in that space the businesses in 2025 i think they estimate the gaming business on a global basis to be 77 billion dollars the united states will be a 25 kegger of that globe is about 13 and we then took that out of events and experiences we made a new vertical because the other thing we said to the street is that we're going to give clarity and more insight into our different businesses right and this does that okay that begs the question what you didn't buy because another deal went down this week right two agencies caa and img merged right were bought why didn't you buy them one of them there was a rumor but did you look at them well i would say the following okay in 2008 uh i didn't spend any money on merging with william morris i'm not sure what ca paid for icm and if you really first of all it kind of they compete with william morris endeavor icm was it was really probably two and a half agencies of size caa us and uta kind of have icm has not been what it used to be back 15 years ago when sue hale rizvi bought it we were looking at it when we were looking at william morris right he took all the value out when he took all the packaging economics out of the business at the time actually caa said you know we're going to grow organically i appreciate them validating my strategy in 08 and past 08 between mike parkowitz james dixon the harry walker agency artist voice out of australia and in the last six months we've done about we brought over about 20 agents we have continued to grow our representation business to stay number one because we we our thesis was distribution was changing and expanding and you needed to be in more verticals to also help your clients grow their businesses and that's what we've done so they're they're just coming they're just coming at it uh 13 years late okay but what did they buy and what did you look at it no i think what they bought was five and maybe more i just know the five incredible tv writers they bought a a operating pretty good music business in kind of not high profile names but working they bought a very good book business and they bought a um soccer representation business out of europe mazel tov okay but one of the things they said was essentially talent first tell it first talent first and i think one of the questions many people asked me to ask you was what does uh professional bull riding have to do with brad pitt well let me just say the following i would say the reverse i have been talent first since 08 and growing different businesses for talent to expand it so if mark wahlberg or dwayne johnson wants to do speaking wants to do a licensing business if michael b jordan wants to start an advertising as a advertising agency which he did and we did with him with our company 160 over 90. we have grown our clients businesses throughout our platform and made sure that they get opportunities across it so if dwayne johnson wants to do a live events that's what we do if he wants to do tv shows if he we gave him help when he wanted to buy xfl that's how we grow our business and we grow that because we have enough tentacles what what you're asking a question is what are some of the other owned assets that we have do well when you're doing business with cbs with something that you own and then you go into a negotiation with a client that you have so much business with that company it gives you leverage as opposed to if you have us as opposed to um not having leverage and therefore suing you negotiate deals and you make your clients a lot of money i guess there's two different approaches why clients hire agents is to make deals and make them a lot of money and create opportunity for them and certain people decide that they just want to sue people and that's how they make that's how they do it i'm not sure that's the job they were hired for but it is what it did so when you think about the agency business and now it's changed are would you look at something like uta no why um we don't need it we don't need it you don't need it just to grow that one so and i'll tell you the other thing i think back in 08 um when we were starting looking at the world differently seeing where the world was going starting with expanding our business with william morrison strengthening our platform and then how we wanted and then adding silver lake and then going after things and understanding that you want to be not only in the representation business but the ownership business we have continued as i said growing the representation business in a significant way it's not like we stood still we don't stand still as indicated by yesterday so i would say to you we're we're the largest agency we feel very good about what we do for a living in that business i think we're the best representatives in the business um and we're growing businesses where other parts of the entertainment ecosystem is growing as you saw yesterday but your business is ufc now it's not it's not representative i would i would say to you as our representation business uh for the last 10 or 11 years take take 2020 out right has grown double digits every year for 10 years it is a very significant part of our business and it is the core feeder for how our business grows and we pay a great deal of attention to it also the business is which gives us leverage at disney and other places the ufc at cbs it's full writing on location is an experienced business gives us you know across the globe where we see the experience economy going and now gaming which is a global business as i said the economics so we're in where the landscape of entertainment is and and the original premise was uh content and gaming content um movies and television and and tick people that create content on tick tock we're in every aspect of the entertainment ecosystem so what does the modern age look like then in terms of that well one of our businesses being an agent i mean our agents realize that you have to understand multiple ends of where the environment of entertainment is going so because clients demand in the representation of actors writer directors dps they demand more services and so if um we're you know we're in the photography business we're in the modeling business we're in the makeup they also want licensing for their products they want to own brands not only do endorsements our agents understand now the whole landscape of what a client wants and we have provided services throughout our business for that that kind of begs the question what do they need you for because without us without us i'm going to point to some others like uh uh hell of sunshine or what lebron james is doing well we represent lebron james right right in certain areas in certain areas but the thing that everyone's looking at and thinking about buying is the thing he's doing with maverick carter how do you can't don't you well i would say to you not that we are in that deal but maverick carter has called especially when he's trying to raise money he says we've raised a lot of money and help trying to help him with certain people that he's are looking at his business because we have relationships with them and we have help because we're good partners throughout that process so do you see a trend of these things happening these individual branded multi-revenue channel companies owned by celeb the celebrities themselves well whichever kind of i would say the following about two and a half years ago we saw um celebrities getting involved with brands as we can all see even though the advertising dollars are going up on on linear channels because where are they going to put their money that much um that they were brands were coming to celebrities to not only do endorsements but also traditional right was traditional also kind of get equity in the brands and use their social channels and we started a business called talent ventures i remember um and uh at the time we did about four to six deals this was about three years ago i think it's now up to 45 deals from naomi osaka doing sunscreen and to ryan reynolds doing aviation gin mark wahlberg doing a tequila at the beginning it was a lot of liquor it's now moved from all the way into fintech to skin care i mean it's all over the place one of our biggest growing areas and one of the reasons we get this is because how many places we're in we understand all in our marketing business we bring all the influence of our marketing business and all of our different relationships to bear to make sure our clients get full value and full exposure do you worry about a day where they don't need you no why because i think we actually add value to to their dreams and desires whether that be creating a production company whether it be producing whether that be representing or endorsements whether he's doing speaking in a whole host of areas we have expertise and we're number one in those areas sorry i'm just you want some water sorry no you're doing this to problem i screwed you up with my question when i answer right yeah this this interview is now over i got some no sorry you want to take a question from the audience no okay well maybe yes anybody want to ask a question so she can catch your breath in terms of disrupting technologies listen i think there's a certain um celebrity that will do that they're doing a lot of i mean he's a really smart guy out of chicago um i again a new form of of distribution um power of a celebrity is important it doesn't matter where you're at in in that scale um and i think it's actually um good so good i mean i think celebrities are are are being able to monetize their stature on that platform i think that's a good thing all right let's talk about your ipo yes first failed attempt yes that's the gray hair on this side talk about it um you know i don't i don't think about things as success or failure i think about things as learning experiences okay um because i've never been in a situation where something quote unquote failed and i didn't gain something for it that the next time around i did better not always but i keep on i'm still curious i keep on pushing forward and so we got a lot of information one is uh we needed all of the usc two is we needed more clarity in our verticals there was a lot of things that we didn't um have and do right so it took um you pulled it at the last minute right it took about uh yeah we pulled the last minute because um i think we got caught in the in the wake of um of weworks and and some others and i think the economy turned at the last minute and i and so but what then we did is we worked really hard for eight months negotiated uh the rest of the ufc into the company um and clarified our verticals listening to what the street told us worked very hard with the guys from morgan stanley that were incredible [Music] brian stern and team and i think it was successful has been successful and as this last transaction we're continuing to clarify what we do for a living to give people true insight into all the things we touch in the entertainment business all right another question get her some coffee or some well i would say the following you know we're uh going to actually the interesting thing going to owned assets and what the our platform does for us you know uh we saw that we saw this coming about three years ago two and a half years ago we actually i just start with one we invested in dappler labs back then we made the deal actually before the nba done we're probably going to do our doppler labs launch with the ufc fourth quarter or beginning of the first quarter we think it's going to be very successful if what's going on with our trading cards with panini or any indication and the and the and the nfts we're doing with panini they've been through the roof and so we now have actually throughout um our our company done a significant amount of deals with tokens and nfts as you saw we did uh crypto sponsored the ufc for 175 million dollars we're doing um nfts with them and other players so um we're exploring what that means we're making significant amount of deals for clients in that space and we used our own assets to give them insight we're kind of experimenting ourselves in a proper way and then we're moving it to clients too so it gives us a lot of kind of uh and we're looking at it at all the different directions i think i'm back here great i missed you a lot of your employees were upset when you took a massive stock trove um can you talk about that 160 million dollars you and your partners pulled out i get that people pull money out well i mean i think i think with the delay and then you went right uh well here's what i would say you know everybody has throughout the time we have set up tranches for people to take money out um it was i had not taken money out the company for 26 years um [Music] i went through a personal situation that i needed the money so i didn't want to um but i also permitted other people to take money out that they got and last time i checked not to i did found the company um i did uh invest in the business and didn't take a salary when the company and as people who have started companies uh you know went through very tough times uh i financed the company i've paid people very well it is what it is it is what it is yep would you have done anything different in the ipo in the current ipo yeah uh i thought it went off pretty well all right so when we're talking about uh you make me feel guilty that it didn't go off well well too bad okay that's all right you weren't wework at least right true yeah and now you can make a movie about them um so plans for future acquisitions i know you just made this big bet what areas are you super interested in well we think of m a in two ways as i said and i've said several times now one of the ways is like when we went public we bought in img arena which is our other gaming asset we bought flightscope which is a video capturing business and in our academy business in florida we bought nsca which is kind of like what i would say is the linkedin of high school sports we always look at how we can create bigger moats around our existing businesses and then the second tranche is are there um [Music] on locations ufc things that are transf will kind of completely transform the company and where we see the world going so on both of them you know me i'm pretty curious on both of them we are looking at the world and seeing things that maybe other people don't see and we will use stock and cash to do that what about growing things organically well we have i said to you we did uh talent ventures we grew uh which one's more endeavor content we've done a lot of things organically and they've been very successful and so we do we do we do all three um so um yeah so of all your businesses right now which one is most important i love all my children and i understand that but i have four which one is your richest child who gives you the most back uh i don't look at it that way i mean i truly i i don't actually i mean i think the the the company is in incredible shape as i've said in our last earnings call we raised our guidance and the company is doing incredibly well you see we all see you know i said to somebody who was having a conversation up in silicon valley what's the tam on content might be infinite right i just went over what the tam is on gaming i think we have one of the only global sports in the ufc we represent 150 sports and the the sports rights marketplace is going through the roof on a global basis i love all my children all right so none of them is predicting let's talk about usc then okay um very badly hit by the pandemic are you talking about the ufc ufc excuse me i only lost one one one fight night okay all right so it wasn't badly hit all right so you one that was incorrect all right so but you created fight island yes you used the opportunity to create a new business well no i mean it's the ufc i mean it we did what we did what um you know dana's one of the incredible partners he is a driven driven man he said to me we have to figure out how to explain who that is dana white runs the ufc and he said we have to get to an island we have to create a place so i can bring the european fighters in one of our investors uh is uh mubala and and uh the of uh abu dhabi um they have yas island we had a conversation we created that spot we've done we'll do in october we'll do our third fight there and then actually interesting right before the pandemic we bought the building next to our facility in um [Music] in las vegas and we had already built out because if we didn't do that we would have never been able to put on fights we built out a whole facility there and we owned the whole area and that permitted us to kind of have two locations to do fights and we then just created a i don't know a 40-page document and we were the first sport up with bull riding that enabled the sports to go on and a whole protocol which took a long time and a lot of work to how to get a sport back up and running with all the protections that you need and we did i think both the both organ both teams the pbr team and the ufc did an incredible job and it's an indication that we only lost one fight night one fight during this whole time at the same time your ufc president you just discussed said the entire world had quote turned into overnight uh which more sounds like you honestly um you know that is so not nice that i i understand it but you have to live with your okay reputation okay thank you um i live with mine so you need to live with yourself so when he said that what did you think about that i let dana be dana i don't always agree with him okay so um but [Music] dana is a guy that makes sure that he delivers on the promise we made to espn and he drove the whole organization to get up on its feet and deliver those fights and i think at the time it was actually important because i think uh the globe wanted a sport back and he made sure that he was going to deliver it and we all got up and kind of followed his lead so how has it been i got you know one of the things we're not going to be cancelling people because what they say during a period of time and that was a very tough period of time first once in a century period of time okay so er still was a really stupid thing to say um how is the pandemic affected business in general when you think about it not just that business but the movie business what's been the what's been the washout of it now as it moves to solutions well i think you know we've had a drive by disney now warner's with discovery peacock launching their um i'm in comcast launch there paramount launching paramount plus and pluto you saw the expansion with netflix and everything else i mean you know again there's been a huge amount of content because you're all sitting at home if you're specifically which i don't want to interpret about ls if you're specifically talking about the movie business overall entertainment movie intelligence okay so if we'll just take the movie business right um i don't you know people are saying theater business is dead that's me okay you're wrong okay okay so here's my here it's gonna be an adorable little thing no here's so the the movie business pre pandemic was a nine plus billion dollar business will it be nine plus billion i'm not here in the predicting business i listen to your jeffrey katzenberg business there's sony paramount warner brothers um uh uh comcast and disney they i don't believe they're giving up nine billion dollars and i think there's two things we have to realize do you cook at home yes and you go out for dinner sure okay so that will be the movie business and so the other thing that i think is true about the movie business and we just saw it in this marvel movie that just came out record numbers record for that hold on hold on record numbers okay the minute you and i are comfortable sharing an arm rest the movie business is back in full form people want more if on location is an indication of people wanting to hang out with other people experiences the movie business based on that movie and those are the movies that are coming out will be back in full black will be some movies that are right for direct to consumer yeah will there some movies be right day and date yeah even netflix and i'm in the middle of it with adam mckay's movie and leonardo dicaprio don't look up there's going to be i think it's 12 days i'm not sure they get 170 theaters they're going to the theater business so does the window change from 45 to 25 17 i'm not sure i'm not in the i'm not going to be in the predicament but the movie business is not going away you and i are going to share an armchair never never okay so um i'll share that with you anytime all right but um that's not going away on the television side um the linear business cable and abc and cbs that's a that's a i think it's a 150 million billion dollar ecosystem between subs and advertising um they have to have that business i i think people still get to the internet through aol they still use their gmail accounts uh just let you know let's not be fly over people here so the linear business will still exist um and um and the s-von business will exist will it be the same that it is no um but uh if you remember so um there was a show that came out the first show on netflix came out wow um game of thrones came out same time hbo had every week and um [Music] and netflix arts right you could have all 13 at once both did very very well well one might argue that the pandemic has been the biggest experiment for the internet companies in moving people and accelerating trends that were happening restaurants are in trouble commerce is in trouble you're not gonna go to a restaurant again i am but i have to say movie theaters not so much my son absolutely we're gonna all come back here in about three two years a year and a half and she'll have gone to three movies in a movie theater three probably i i wrote a column today about it at the time okay i'm going to go to the bond movie okay and i only went to three when there wasn't coven no not so stop no not so you're lying okay okay so i think it's been a terrible consumer experience they've been abusing oh i'm not saying that it hasn't been but i don't believe it is going away that was the question all right is we you want to not talk about moving to the experience as opposed to whether it's going to exist okay that's a different conversation a little like say broadway theater it's an important thing but not the the only thing that people have gotten used to streaming broadway gone away no okay is it going away smaller it's small i said is it a nine billion dollar business no it's probably a little bit less okay all right let's talk about streaming though all these companies are now calling themselves streaming companies the uh wall street's rewarding them for this you yourself said we're going to make a lot of money streaming well i think i think the tam on content is infinite all right what happens to the the ecosystem if all the economics change and what are the economics that you're most interested in here's the only thing i care about do my clients get to do what they want to do and get prayed properly for it right and let me just tell you something they are in like crazy numbers right now as i said to you the representation business right now is growing at double digits over the last 10 years and just remember the following we started out with radio he had the movie business he had television he had dvds you had cable technologies always come into the business and talent has always been paid and been paid very well and now you have six behemoths right um with some smaller players like roku and paramount and they all need which they've all said um ted talked about this south korean i have a different south korean show that i like called mystery which is incredible they all need more content and there's a voracious appetite for more content so from where i sit and where my sit in the ecosystem my clients are doing really really well and will continue to do really really well because when i started this business 26 years ago there was four networks going to six three or four cable channels and certain amount of people creating content that distribution model has quadrupled under the same amount of people making content the asset is the people that are making content and they are going to get paid and they're getting paid very very well and they're going to continue to get paid very very well with all these guys truly you know trillion but how does the economics change it's not back end it's not i don't know so what you're having started with netflix you know probably if you had a slate of movies at warner brothers ten percent of them would hit a back end on the movie side right it was a small amount right now they're paying each one of those 12 movies as if they've all hit back ends and we saw it with warner's as jason was here he paid out 200 million dollars in back ends right not every movie would have made that so instead of making 10 the clients all the clients it's at 100 and that's through netflix is doing that apple's doing that amazon's doing that disney's doing that warner's is doing that and peacock will do that so it's a very it it's great time so it's good for rio yeah so when you know it's good for my clients when you imagine consumers and what they want from entertainment what do you think when you look at social media or tick tock how do you look at those tech companies now and their role because this is a tech we focus a lot on tech when you look at the big tech companies apple i suppose netflix is a tech company amazon how do you look at them and how does hollywood look well they all have i think jeffrey said this appropriately when he was uh you know when you did your podcast they all have different reasons amazon's trying to sell stuff with prime apples trying to sell services and the phone um sony's a pure play netflix is a pure play right right warner's now got multiple but i think has it has a double-edged sword on the movie side also warner brothers if you look at ted's lasso is one of the biggest suppliers to the other services and disney has picked their three or four main um uh you know pixar etc marvel star wars and now any assets that come out of fox they've all picked their different pla how they're going to play this business so um you have to play them all differently do you imagine the tech companies i was talking to a pretty major studio executive the other day we had dinner and he thought who paid for dinner and it was it at a restaurant it was outside was that a restaurant yes but i guess you'll go to the movie business okay i like restaurants better than movies um and you've lost my train of thought good and i've got it what did he say what did the tech person say no that's a tech person studio person if he says i hope to hell google buys me someday do you see that happening i don't know if if the government would let that happen i'm not sure that's gonna happen they're never gonna let that happen he was hoping that well he should stop drinking okay all right last question um i was joking with you about well i can either ask you the trump question you represented him or i can talk to you about the changing moors of hollywood um you're famous i think largely because of that show having a temper but you have a temper i just saw something in page six again that you're yelling at someone at a restaurant i could care less that you're yelling at people i didn't actually but that's okay okay i don't care i don't care if you did okay but i didn't okay okay um have you had to change the way you behave uh i've i i think i've matured um but i am still uh very curious very aggressive um [Music] as this last deal i mean it took we we did this deal and we were we were weren't invited in we pushed our way in we closed this deal in a very short order and took it away from a lot of big players um and um i still give a um and i love what i do so uh that's how i operate my life and the minute i don't i'm not doing anymore what would you do you know as jimmy iveen said to me once who you know sold me it would probably take you know when you have a big tanker that's bringing over shipments of goods it takes about three miles to stop i'm not sure what i would do but i probably want to help one of the things that's in my head that i want to do eventually is i want to help because i'm dyslexic my three boys are dyslexic and i don't think they've gotten the privilege of their father and my economics there's a lot of kids in the inner city that don't have that privilege and maybe creating a school for that for kids would be something i have started talking about with the people out of yale that helped me think through my kid's situation so that's one of the things i've been thinking about okay that's older wealthier area manual what about young mail room you and i both started in the mail room right as you know right you have a more famous mail room right i just had the washington post mail room right um what would the young aria i would do what i'm doing now right now yeah asia yeah well i'm not an agent but i would that's part of my life actually i do that too but i'm not only an agent um but i would be trying to build and run this company so what would you call yourself now not an agent what i don't know i don't call my brothers or ask them what they would call me you know so um i'm an executive also an agent what would you call me don't don't answer that don't answer it all right questions from the audience don't call him tech king definitely not he just called elon tech king and it was not needed okay techno king is actually his name on file links but anyway all right um so what's your name uh daniel nice to meet you big fan of yours um um the question is the creator economy as a phrase want to know what you think of it where does it sort of sit in the spectrum between um i guess diluted form of celebrity and new economic phenomenon and how is endeavour how are you defining creator economy well creator economy being anybody that can has a saleable audience essentially across any distribution platform whether that's newsletter tick and whatever it might be so i feel like there is this new pocket of people and you know i'm close to businesses that are engaging in that and a friend's basically building the endeavor business of of that but i'm wondering what you what your thoughts are is it just diluted from a celebrity where with better tracking or is it is well you know you know one of the biggest stars on tick tock is addison ray yeah we took her from that we represent her and what did we do we moved her and i think she had one of the most popular uh movies on netflix we take a lot of those and that creator economy however you defined it social um digital and we whether they be books whether they be endorsements whether it be talent ventures we move them across the business or late night shows so it's actually a kind of i think in the if you see the economics around where that world is there's huge money around that business and that is a very good business for them but also what we do inside of our company is move them across the landscape of entertainment and content creation so that's how we look at it will that be a bigger business someday than being like it's a pretty big business now would you ever think about sorry would you ever think about running some type of creator accelerator which is sort of morphed into your talent ventures where you find the things that could tell actually the guy running our business ben anders has actually we're starting to explore with what that looks like we do not have that built out going to what you said kind of like organic growth that would be the area that we don't have it thought out completely but that's we are definitely thinking about that and how we proceed in that area didn't you have a weird little company a couple of years back that was sort of looking at that yeah on youtube yeah yeah he did he was the earliest person to it hi i'm patrick um i got into a really really minor dustup on twitter with a media critic in london who was lamenting the plethora of streaming platforms and saying that it was diminishing the artistic quality of the content and my response to him was like well no maybe but it's also giving actors and writers and directors work and you're just curious which side of that you fall on i don't know i think every every day there's another great piece of content that i'm watching it's it's my mister it's just finishing up the ken burns dock i watched i know it's ours but i watched mccartney321 i mean i can't keep up so i think it's actually really i mean it's incredible what's going on out there right now so um i'm watching the other one i just started which i love is on netflix traders um i don't know if you've seen that one so i think they're wrong i think you're right okay right here thanks cara stephen wolfe padera ceo of encantos i'm curious your perspective ari on the kids market given how important every single streamer needs kids to ensure both new uh customer acquisition as well as for retention and just given all the m a that you've seen in the space what do you think about the future for kids and if you add on what do you think about facebook pausing instagram kids i said we have to do a whole session on that we're going to okay and i'll come back to have that conversation later all right okay i mean it's a it's a i mean whether it be nick whether it be disney it's a huge market the licensing is enormous um and um so i mean it to be candid i'm a little disappointed in us as it relates to our book business and not being in the kids business big enough it's one of my pet peeves that i've been we could help you with that you should you're driving about everybody i think it's an incredible business um and uh so and uh just follow up when you talk about all the growth that you've seen over 50 of kids in america are now diverse so i'm curious about the maybe lack of representation or doing a better job of representation any thoughts on that no i mean listen we all have to do better right we all have to service a a an audience that is more diverse minority majority is hap is going to happen um the industry has got to do better we all said it we as a company have got to do better so um and we're working pretty hard to do that and so it's this is not just you make a statement you have to do a ton of work behind this we actually just had an offsite about our diversity plan to to make sure that we're continuing to push in this area and i think not only internally as it relates to who um you know our agents or executives at our company because the only way to get there with the clients is have a diverse internal so we're doing everything we can to kind of continue that process hi michelle berg hi ari um quick question around your moral obligation to represent talent um karen didn't mention this but you represented trump while he was doing the apprentice so has your thoughts around um the obligation that you have to elevate talent that maybe doesn't align with your moral or maybe does align with your moral thoughts and thinking has that changed well i mean um my personal opinion is at the time he wasn't who he was um i didn't agree with him then but i do represent him i you know we do represent republicans i don't think that you you i don't want to be like i'm on a college campus and i'm not letting people that i don't agree with speak when we get into that place i think it gets we get into some really bad territory so if you're saying to me i can only represent democrats that completely agree with you you've got the wrong guy not sure i'm just saying but so we have a diverse group of people that we represent we're going to continue to do that we're going to let people have voices we don't have to always do i i i don't agree with now with a bunch of things that sheryl sandberg it you know has done or said so you know we did represent her that sorry so it is what it is you don't represent her now correct no okay would you represent trump again no okay uh let's answer these last questions people are very interested in you ari hey how are you rick cutter nice to meet you make them quick so we can finish in the 1950s i believe tv came into play and kind of hurt the theater business for a while could you envision some sort of technology innovation to try and get people back into theaters i think it was cinemascope or something like that with the wide screens what about the metaverse too um you know there was a on the cover of life magazine i think in 1970 when gulf and western owned paramount charlie bluehorn said they had like a string of bad movies i think he said in the article the movie business is over right um i guess he was wrong then um i don't i'm telling you the movie business is not over now we have imax we have a lot of stuff happening um i guess there's going to be ar vr there's going to be a bunch of stuff that is going to change it maybe as the other question was on nfts how movies get made and finance might change also so that's things that we're looking at i think one of the biggest problems we have coming up in the movie business is how we're going to deal with china and um and and that conversation which we didn't discuss we can discuss later but um there's going to be many different ways to finance it and probably i'm not in that space many different ways to broadcast or air it that will change it and make it more appealing in different ways thank you great he's last two i think he was first i'll go for it oh thank you uh hey aria it's alex quick sports question or two questions one do we think or do you think i should ask sports rights will continue to grow in value in terms of the major leagues will we continue to see it go to the right and the second question is will any of the major packages go to one of the big tech platforms in the next five years well on thursday night it did on amazon that's not really a major like a sunday or a monday night um well i think right now you're having the nfl negotiate the sunday ticket i'm not sure that's going to end up it might end up with a tech player so i don't know if that helps you on the first part of the question um if you saw what the la liga and other rights went for when paramount jumped into buy rights rights for sports are going up because you get subs that way and you'll probably have the linear and the s fod like we did and like the nfl has done and other players the co the co the co airings so i i believe on a global basis sports and if there's any indication we represent as i said how many sports 150 sports and we have sports sports rights are going up and i think i think they're going to go up they're going to continue to go up just because of of the nature of the beast and i think you're now going to have a lot of the um espot companies step in the amazons the apples etc i'm not sure about netflix um he said no i bet you he would have bought formula one yes he liked he liked what they were doing around him so and not bought formula one so the content around it he liked uh hi franklin leonard um i'm curious given the incongruity and it's not limited to wme or endeavor between sort of the staff of your content business and the audience in terms of diversity be it gender race or otherwise to what extent do you believe if at all positively or negatively that that incongruity has affected your profitability as a content business um i would have to look um we're pretty profitable but that doesn't mean we're perfect and we're definitely not i guess the question is is that if you were more diverse do you think you'd be more or less profitable in serving a more diverse audience i think it would be i as i just said you know it we're turning into a minority majority and you have to reflect that so i think the marketplace is going that and if we don't adapt and change for the right reasons not only for the financial reasons we would be foolish can i ask one quick follow-up yeah i mean the the industry as a whole i won't limit it to wme is less representative of the population of the audience and has been since the advent of the film industry so that the the need to change theoretically was there both for the right reasons and for profitability it certainly it's accelerated in the last say decade or so i'm just wondering how much money has been left on the table in your mind historically because of that incongruity in that gap i really can't tell you i don't know i'm sorry answer all right i have one last question we talked when we first met i told you hollywood wasn't entrepreneurial enough do you think it's gotten the message well when you say that and you have now facing tech companies and their power oh you're just talking about facing i would say that the entertainment business is entrepreneurial because when somebody starts a new show or a new movie they're an entrepreneur because that takes guts to start something new um and so you now have over 900 shows and movies and so as it relates to um your definition which is tech have they uh i don't have an answer for that sorry that's okay i'd say you're an entrepreneur anyway i thought i was gonna say you could say that too i was thinking it it's fine anyone everyone or emmanuel thank you very much you

Channel: Recode

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Id: dW1DWiYtzYM

Length: 51min 19sec (3079 seconds)

Published: Mon Oct 04 2021