David Rosenthal: belief

Transcript context

…Yup, you are super right. I think it's in negotiating contracts. In capital, everything about this industry takes way more money to get something off the ground than it used to and frankly, to compete. The exact same thing that Bob Iger realized when he took over Disney and actually why he did the Fox deal, is he realized there are going to be very few players left standing in this reorganization of content and distribution. Why he wanted to make Disney one of the few scale players is because you need scale to be successful. I think he realized that it was worth diluting shareholders to go and make a bunch of acquisitions in order to accomplish that scale. I think Bernard realized the exact same thing about luxury. Yup. There's also another dimension to this, which maybe you could lump into the advertising economies of scale, but that I think is maybe something a little different, which I would call cultural economies of scale that have come out especially in the social media era. Think about the Jay-Z-Beyonce relationship and the Rihanna relationship. These are relationships that extend across multiple LVMH brands that I'm sure are incredibly expensive and require a lot of capital, but it's not just the capital. Why did Jay-Z and Beyonce choose to work with Tiffany? Would they have worked with Tiffany for this campaign if Tiffany were still under its previous ownership? I don't know. Maybe not. Maybe. But you're right, it makes it more attractive.…

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