Jimmy Iovine
You see Netflix, Netflix comes out, what do they have? They have a checkbook. They have no catalog, nothing.
So, what do they do? They write advances and they buy the distribution of all those companies. All of them. Warner, all the companies. They would license their stuff to Netflix. Netflix took other money and made their own show. So now they have their shows and their own shows. That's sexy. They build a audience. Now their stock is $500 billion and Warner might sell for 40 billion. Warner Pictures...
Rick Rubin
Unbelievable
Jimmy Iovine
Right? Yeah. So how many times you got to get hit with a stick, right? The record business. Spotify is worth 160 billion. All the labels together is not worth 160 billion. And Spotify owns nothing. They own nothing.
They're a distribution channel. That's exactly right. By the way, I didn't add Apple Music and Amazon in there yet. Or YouTube. Yeah. If you add those together, probably goes to 300 billion, 400 billion, who knows.
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Jimmy Iovine
So people, you could build a model around the record business where people would either get the music from the label or from a combined distribution. Because if you control the distribution, you can deal with the communication between your customer. What these people refuse to have is customers. They were always wholesalers. And I think this is all changing in both television, movies.
I think this guy David Ellison, I met with him once. He seems to have a really interesting take on it. And I know that the people at UMG, I don't know the other labels. If I know the people at UMG want a more progressive sort of relationship with the customer and stuff, you know, that's what this whole complex thing is. This whole complex thing is for artists to be able to have everything in one place, you know, and it's doing really well and like everything else that we always do. Everybody thinks you're crazy, but I don't think we're crazy. I think we got something going.
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