David Rosenthal: belief

Transcript context

…Right. It's all about market by market. To be honest, their mission statement of transportation of everybody around the world doesn't really map to power. Man, I think they probably know that now. They're smart and able. Now if you look at Netflix, it's a different matter. If you think of Netflix going into a different geography, the question there is, remember the key competitive advantage there is scale economies. There's fixed content that they can drive across more subscribers, so the cost per subscriber is less. And content's a big part of cost, so that's a big, big advantage. If you go into different geography, for them, the question then is, does a reasonable percentage of our content from geography A apply to geography B, even if it's only 20%? Let's say you're going into England and 20% of your US content applies. If you're a versus English-only competitor, 20% times that large amount is a gigantic deal. Then the dynamics of it become even more interesting because if they're unbelievably granular data, they can then actually tilt their content development to have more crossover. Thinking that through of how to extend power, where the power umbrella fits is something that's really interesting. It's important, economically, of course, because getting power is really hard. If there's any place that you can take advantage of your brand, sometimes it's unusual. Think of Disney going into theme parks. Back to Disney again, here we are. As you were mentioning, it made me think of Disney. We talked about this a little bit on our Disney+ episode. Fox actually, I think, did this really well, what you were describing with geography and power of over the last 10 years or so. That's only been around for 10 years. I believe Fox locked up all the streaming rights to Indian Premier League Cricket. You would think like, oh, well, that's relevant in India. No, that's actually relevant all around the world. So that was a big part of the Disney acquisition of Fox. Right. The fact that if you get a high probability of power, it's a step change in the certainty about the value of the company. Anytime you can extend that to more customers or more situations, then the question after that is, okay, what's beyond that? That's a deeply researched area. There's a lot in that. I'm not convinced yet that we have a lot to add to that.…

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