L2inc.com video above published Sep 13, 2018: HBO execs have proposed moving to a Netflix strategy. This is a terrible mistake says Scott Galloway.
- HBO vs Netflix
- LVMH vs Amazon
- Mercedes vs Toyota
- Emirates vs Southwest Airlines
- iOS vs Android
Transcript (auto-generated):
00:01 from the age of 25 to 40 i lost the
00:05 capacity to cry not once not when people
00:08 close to me passed away not when things
00:10 move me just couldn't do it for some
00:12 reason as a matter of fact the only time
00:14 I ever really felt anything I mean
00:17 really felt something between the ages
00:19 of 25 and 40 was when I was under the
00:21 influence of media specifically
00:25 television a hundred years from now TV
00:27 will be recognized as the defining art
00:29 form of our age when Michael realizes is
00:32 on the bus that killed his father Claire
00:35 reviewing her life as she is about to
00:38 pass anything with Hank from the Larry
00:40 Sanders show I will be your champion
00:43 Game of Thrones the original gangster
00:46 Sopranos a mob soldier perusing photos
00:50 of him and his family at the shore
00:51 before he hangs himself what do most of
00:53 these shows have in common three things
00:56 one h-2b and 300 HBO changed the
01:03 television landscape full stop yes they
01:05 should have seen Netflix coming but
01:07 Netflix similar to Amazon and other
01:09 unicorns was able to execute on a
01:11 strategy that HBO's parent company Time
01:13 Warner could not specifically cheap
01:16 capital without pressure for
01:18 profitability Jon stanky the new head of
01:21 Warner entertainment and by the way a
01:22 Bruin grad can't be all bad recently
01:25 addressed his troops at HBO and
01:27 described a future in which HBO would
01:29 increase its subscriber base and their
01:32 viewing hours to pull it off according
01:34 to mr. stanky HBO would have to come up
01:36 with more content and transform from a
01:39 boutique operation to something bigger
01:41 and broader in short become more Netflix
01:44 ish this was a big mistake and will kill
01:47 what is unique and special about HBO to
01:50 move HBO to an Netflix like strategy is
01:53 to walk into the MU say - or say and
01:55 announce we need to scale this makes no
01:58 sense the most efficient way to process
02:00 information binary zeros and ones and
02:02 the entire consumer sector is
02:04 bifurcating there's Amazon at zero
02:06 there's Gucci at one LVMH is at lunch
02:09 hmm is at zero in the mass category
02:12 Mercedes Toyota
02:13 blue and Southwest Airlines and then
02:15 Emirates and Qatar at the top they
02:18 survive and prosper while Delta American
02:21 United and Sears or anyone else in the
02:23 middle gets run over
02:25 we're also bifurcating as a society
02:27 we're turning into a country of three
02:28 hundred and fifty million serfs serving
02:31 three million Lords iPhones only command
02:33 18% of the market but garner 87 percent
02:38 of the profits HBO is iOS garnering not
02:41 only awards but billions in EBIT - every
02:43 year despite spending less on original
02:46 content mr. stanky is taking unnecessary
02:48 even reckless risks with a unique
02:50 process and culture and is in danger of
02:52 killing what is really special about HBO
02:55 HBO and Disney are the only firms over
02:57 the last several decades that have
02:59 managed to create a process and a
03:01 culture for pulling off the impossible
03:03 scaling creativity they attract or
03:06 maintain the not so secret sauce and
03:08 media a list talent HBO should be the
03:11 prize for switching from Verizon to AT&T;
03:13 where the handset messaging and apps can
03:16 molest people's data and pitch marketers
03:18 on there we're number three strategy to
03:21 summarize its Amazon and LVMH southwest
03:24 and Emirates iOS and Android Chipotle
03:28 and Chipotle that's right we're due for
03:32 some near Mexican fare the Big Dawg
03:34 would like to hang out and here's my
03:36 invitation of Romelu Lukaku the english
03:39 striker from Belgium he and I would just
03:42 get along we're in the line he gets a
03:44 burrito bowl I go pulled pork and boom
03:47 they say to him guacamole or cheese on
03:50 your burrito bowl mr. Lukaku and I step
03:52 and I say yes because that's how me and
03:57 Lulu that's what I call him cuz we roll
04:00 that way he calls me Scott this could
04:04 happen we'll see you next week
04:07 [Music]
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