WarnerMedia, Spotify, NBCU Execs Discuss Coronavirus Industry Impact

Room webinar. Take a listen. Welcome everyone to a Variety's first ever streaming room. I'm Andrew Wallenstein, President of Variety Intelligence Platform. It's a new venture focused on digging deep into the issues that matter most to the media business. You can check it out at Variety dot com, slash v i p. Thanks to all of you for streaming in from your homes today. We may not be able to gather together. This is the next best thing. I think of it as a virtual version of a Variety

Summit panel. Before we get started, I want to say that we'd Avariety understand there are much more important issues in the world right now. When it comes to the coronavirus and it's impact on the entertainment business. But I think we also know that the impact this crisis will have on our industry is profound worth some conversation. I've got a group of great panelists virtually gathered to talk about the impact it's already having on their own businesses

and how they're adapting. So let's meet our panelists. Greg Boyer is the Partner for Technology, Media and Tell Telecommunications at p w C. Josh Feldman is Executive vice President of Head of Marketing and Advertising Creative at NBC Universal. Julie Clark is the global head of ad Revenue in Innovation at Spotify. And Seaun Kisker is the e v P and Chief Strategy Officer for Warner Media is Direct to Consumer division. Thanks to you all for being with

me today. Um, Sean, let's start with you, and this is a question I want to hear from each of our panelists on what are the sum of the ways you're seeing your your business change in the midst of this crisis. Yeah, I mean, I would say obviously engagement is way up and it's hard to sort of start out. You hit it, you hit the right note there, which is it's hard to sort of look at look at something like that, which is a bit of a tail wind for us in the broader context, and get particularly

excited about it. But the when when we look at the constraints people have, consumption is way up. People are consuming more media according to report, I just saw if you want per center watching more shows and films on streaming service, so and we've seen that in HBO now as well so net Net. From a contextual point of view, it's a it's a good time to be thinking about providing solutions to people who are stuck at home and

at at this point don't have very many options. So it's from a from a product point of view, it's been it's probably created a bit of a tail in, but obviously they're a whole hosts of challenges that go along with that. Julie, what about yourself, Uh, I imagine

there's some challenges your way too. Yeah. Absolutely, I mean I think that from the perspective of like Spotify, culture has always been a huge part of the business and context in which our marketing partners are reaching our listeners is always a paramount importance, and now with cultural moments

that are happening in the ecosystem. It's just really important that we are making sure that we're being extremely thoughtful about how we are approaching that listener experience because how people are listening, when they're listening, and what they're listening to is changing. So it's made us really have to adapt to um that environment and make sure that we're

extremely authentic to the overall experience. Well, I definitely want to hear more from you later on what kind of trends you're seeing its Spotify in terms of audience patterns. But I want to go over to Josh at ends Universal and the advertising side. Uh, how has this crisis impacted you in your business? Yeah, you know, so we're on our fourth week of remote work at this point, so, you know, they changes that have really come that have been most interesting to me is how we as a

division and a group are really adapting to this. You know, we've always been a you know, people first, human first company, like all of the other panelist companies are here, and how do you keep that momentum alive as we're working

in a work from home scenario. So, um, what we're doing right now is we've been having daily phone calls um for our entire division, which is like twelve hundred people, where we're able to keep ourselves up and going uh and having daily phone calls all day long to keep in touch with each other. And that's been really really amazing, because when you work for a company my size and you can't really share information in a timely manner normally.

What we've found is actually in our work from home scenario, we're sharing information in real time so much better than we ever have before. And we've tried to really humanize those events as well. We start every single meeting by recognizing heroes, whether it's from the medical profession or first responders that are close to employees of our company, and

really taking the time to recognize those books. So it's been become a really human element of what we do, but it's also been able to share information in real time. So moving on, wanting to get to you know, as stark as this situation is, as you were operating, you know, Julie, going back to you, was it the kind of thing where you were operating out of a playbook and now you have to sort of throw that out and operate in the whole different way, you know, it's not that

everything is thrown out. I think that, you know, what we're really doing is making sure that we're consulting our partners UM and that it's really opening up an opportunity for creatively and we co operate, you know, creatively working together as a team and cooperating in different ways. UM. I think that you know what Josh was talking about, you know, having that collective and making sure that we're

communicating appropriately from a playbook internally and then externally. It's really, um, you know a lot of the things that were priorities before our priorities now, you know, making sure that we're you know, at the forefront of podcast content creation, making sure the creators are a primary UM focus for us, and then making sure, um that we're having thoughtful engagement with our UM listeners in the right way. So have

we seen the trends change and how we're having those conversations. Absolutely. I think that, you know, previously we've always encouraged our partners to lean into cultural moments. This is a place where we're really starting to think about, you know, how do you lean into that cultural moment? But more from an emotive perspective in understanding that you really want comfort and entertainment and education. Um, you know, with what the

content that they're you know, streaming at this point, got it? Uh, and Sean work back to you. Is it the kind of thing where it's like you have one playbook at the beginning of the year and now everything's changed, or is it maybe a little more moderate than that. I mean, uh, well, it's hard enough to launch a streaming service, never mind in the middle of a pandemic. So I think there was a starting you know, really two years ago when

this thing kicked off. There's been a pretty constant stream of effort and and the team has run basically at one speed and what's been actually really cool. I'm not sure if the other panalysts you guys have seen this, but um, we really haven't missed a beat. From a remote working point of view. Um, it's really a testament to the teams and the leadership of those teams to be able to keep everybody together. But we haven't. You know, we're still very much on for a May launch and

and haven't really missed a beat. Which I have to say is you know, obviously there there are things you think about in terms of the marketplace you're entering into and um, some consideration you give to those two to that, but the team has really has really sort of cloud own admirable here. Nice. I mean, you're the launch you're referring to as HBO Max that's still on schedule. I mean, there's been naturally people in the market saying the streaming

services should get out there early. Is that even possible? I think I think if if, if we if we could have gone a little bit earlier, we would have. But but I think we're absolutely on schedule for for the May launch, and I think just based on what I'm seeing and reading, uh, I think there's the opportunity, which is to say, people being at home for a little while, it's going to be there for a little while.

So I think when we come out in May, it's gonna be a very good time for people to get not just the d HBO content, but all of the library content that we have coming from from the warnerside. It's ten thousand hours of content at launch and then plus all the originals. So I think there's there's gonna be something for everybody there. Greg, you're in your capacity at p w C, you're hearing from a lot of different businesses. I'm just curious, is it is the tone

sort of crisis level at media company ease or you know. Look, there has been a share of these kind of situations in the past, when you go back to things like the recession of two thousand eight, when you go back to the wider strike mine eleven. How does this stack up in terms of crises that you have consulted on. I think it's um, it's it's very similar to those in some respects, but it's very different as well. Um. We we don't certainly haven't faced a situation where the

entire country, you know, is staying at home. That's something that's very new and very different and I shouldn't stay entire country. But but the most of the businesses that we work with, and it's very different across the M and E stegments in terms of how how it's affecting their business. Um, we're seeing sub businesses that are they're

handling it very calm and dealing with good stabilization. Uh, and they're looking towards you know, that light at the end of the tunnel where things come and they can

return to a new normal. We also have some businesses that are very severely impacted, and in some cases that's working with those clients to to help look at the care Act and how that might be able to help them in time of time of need UM, but also looking to the future in terms of what does this mean for their business, their business model, and how are things going to change moving forward and what what's the that new normal again, how's that going to be significant

for their business and uh and how they approached the market. Okay, now over to you, Josh. You know, on the advertising side, it's interesting NBCUniversal participated in a pretty broad ranging p s A with a lot of partners the White House about getting the message out to people about how they should be conducting themselves in a crisis like this. I can tell me a little bit about that, sure. So it was actually a really phenomenal project to be involved with.

We were originally UM contacted the CDC reached out to the Ad Council and said they wanted to create a series of p s as that could run across all of media UM and they asked who can create those for them. So the Ad Council reached out to our team and we were able to create a number of graphic based um P S A S that gave the information that obviously was changing literally by the hour as the CDC was getting more information. Uh. We felt really really proud we were able to do that quickly over

the weekend. This was now three weeks ago, probably when COVID nineteam was really starting to take effect on our country and people were really needed to to get that information in real time. Following up on that, there were calls directly with the White House on how each media company could then further get the word out in ways to their audiences. So we decided to utilize our iconic the More You Know campaign, which has been around for thirty years at NBC Universal. We utilize our talent from

across the portfolio. UH, and we thought, since everybody obviously is working remotely from home, what was gonna obviously going to have to happen Because all of our talent was

also social distancing and working from home. We were able to then write thirty to forty scripts on various different things that were important, so whether it was messaging directly to those most at risk, whether it was messaging to parents on how they should be speaking to their children to get them through COVID nineteen UM whether it was UM trying to reach millennials who were not social distancing

and taking it seriously enough. So we created a variety of different scripts and we had UM about sixty different talent from across the portfolio UM shoot themselves at home with their cameras UM on their phones, and we then had them send it into us and we edited it together into a full series of p s a s under the More You Know campaign that featured talent from all across our portfolios, from news to entertainment to Hispanic. We did a bunch of English language and a bunch

of Spanish language that are now running everywhere. And it's something we're really really proud of because the CDC is the one giving us that direct information and we feel like we're getting that real information to the people in

real time. But also the process of not being able to go and shoot this high you know, high tech high resolution like we normally would, but having everybody shoot them on their phones and editing from our own homes was really an interesting process and something we're really really proud of. I think that's great, Julie. You know, on the subject of giving back you've been engaged in some

relief efforts over at Spotify. Tell us a bit about that. Sure, absolutely, And and similarly, I think Spotify is really a part of people's essential listening UM habits on a daily basis. So you know, part of what we have been UM working on and something that we're really proud of is the Spotify COVID nineteen Music Relief Project, where Spotify is matching up to ten million dollars in donations UM specifically

for the music community, UM, the creator community. So UM, you know, that is something UM that has been a

passion point and been moving forward on. And then also just from like general information perspective, UM Spotify on our home screen it allows users to you know, visit the app and then also learn information from the CDC and the World Health Organization across thirty nine different languages, So independent of where you are, that's where you're going to be directed to to be able to get the right information about your health and wellness as well. That's great,

that's great to hear. UM. I want to talk a bit more about what we're all dealing with these days, which is you know, remote work and what that's been like for you guys, is the nature of being in your business like many business nowadays, that everything can be done remotely? Or is there something distinct your business is where you know, maybe it's okay to be doing it from home. Maybe there's even hidden benefits. Uh, Sean, what's

your take? Yeah, I mean I guess what must be for everybody else, But for for us it has been as I said, it's been. I think productivity is there are aspects of it, so for example, like QA and things that some some things that need to be done in a in a more shared setting, uh, are more challenging. Um. But from a from a global point of view, I think it's been really really. I don't think we've missed a beat, and I think that I think the the

the challenge actually becomes more Uh. The tools are there, the challenge becomes more of an emotional challenge than a physical work product one, which is how do you keep the team together oriented, understanding what's happening? And as the panelists were saying it, it's in an environment where the information is changing very quickly. It's uh, it's how do you how do you sort of keep everybody connected to the mothership. The biggest challenging. Got it Josh and your

capacity of NBC Universal. What's it been like for you, Well, it's obviously very difficult. You know, the crux of everything we do is usually you know, in studios with a number of different people on a shoot at all times, you know, hundreds of people there for a shoot. So having to take that away and do everything you know from home, from that point of view is less than ideal.

But I think that if you see the work that's coming out, not just from NBC Universal, but from marketers all across the country, and how they're responding and creating messaging that is not tone death, that is done remotely,

that's using imagery that's already shot. Um, it's really been an amazing thing for me to watch as a viewer, UM and really see how these companies have responded to it as far as working remotely though, you know, for the most part, Um, I agree very much with what John was just saying that, you know, we've really responded well.

And I think that we're actually sharing information, as I mentioned earlier, more in real time than ever before, and we're certainly learning about other divisions in our company quicker right, there's meetings that unfortunately we're all guilty of we just didn't go to because I've got something else going on. Well, now that we're having these big, massive work from home meetings, I'm hearing from folks and other divisions and learning so

much more. I'm getting so much from my insights and Measurements teams on what this truly means, that it's really helping me in my day to day work as well. So there's definitely, you know, some positives and some negatives about this. GREG you consult with a lot of different companies on remote working other kinds of issues. What has

been some of your counsel during these challenging times. Well, some are more prepared than others obviously, you know, if you think of Workforce of the Future and all the tools and technologies UM that we use for UH for not only video conferencing, but for collaboration, every every client's a little different in terms of how they're handling it. There's some some areas that really require UM in person

human interaction. If you think of moving to towards a virtual salesforce in some regard you think of like projects that require design in UH, they're much more suited for you know in person, and I agree with both Josh and Shawn's comments that it's really hard to UM to remotely cover the human factor associated the camaraderie, the ability for people to feel part of a community, and sometimes that's the biggest challenge UM. At PDC, we work very

remotely on a constant basis. The biggest change for our folcus is they're they're not traveling to be at their client site and interacting in a in a in a very human way. They're doing that, you know, using technology. UM. But we're seeing that across the landscape or seeing you know, lots of rooic efforts to to stay connected. And I do think that a good portion of this will remain when we UM. When we come out of this, I think there will be new and innovative ways to work collaboratively,

to work virtually. Some of this will remain UM as part of you know, where we go UM, but we're seeing very innovative approaches across that form UM in all different client spaces. Greig, why don't you show us some of the slides you've got on this subject. I know you've got some interesting thoughts to share. Sure, we've developed UH the way we approach, and all of these are available via p TWOBC dot com at our US COVID site that's up on the screen as well as on

the resource center. But we've developed a crisis methodology that we work with a lot of our clients on. First mobilized, which is taking care of your people UM, dealing with some of the issues that that are cropping up in the first number of weeks related to the crisis. Then moving from that into stabilization, which is making a little bit more informed decisions for your people in your business.

And lastly, it's you know, looking at the big picture as we get on top of the you know, the backside of that belker, and how we look at UM strategic decisions that are going to affect your business moving forward, both today and tomorrow. We have six key areas of focus that we that we have seen our clients looking

at UM. Obviously crisis response, workforce, supply chain, UM, a lot of finance, liquidity, copple market issues, how do you deal with trade as an as an example, there's a lot in it operating loss advantages for lated to the care Act, and then ultimately that strategy and that brand component in terms of how we're working with communities and businesses. We've got a number of tools out on the site.

One is our COVID navigator that allows people to UM fill out a quick survey, get real time UM sentiment on where things are going and how people are dealing with the critical areas of focus are And then we have a set of tools outside on our site related to check in, which is some new tools associated with how you manage UH and and and benchmark productivity for

your workforce. Now that we're all working from home and working virtually, and there's many other UM resources out there, I would say at the site, most of them are you know, available to all, so please uh check it out and you'll find something probably useful that you can

your organization can use moving forward. So I want to go to the subject of you know, we're seeing companies like some of yours with drawing financial guidance for the coming quarter, and I'm curious what kind of messages hearing from leadership at your companies right now. Is it is it about rallying the troops in the face of adversity or is it really tough talk about tough times ahead. Sean, do you want to take that one first. Yeah, I

think there's a healthy dose of realism in it. And I think just to take one step back within our company, you know, you we've talked about sort of how people have engaged in the crisis from multidimensional point of view. I mean, when when we take a step back, A T and T is responsible for a major piece of the country's infrastructure and communications CNN is responsible for a major piece of how people get their information about this.

So there are aspects of this that that uh, well beyond the launch of a streaming service and well beyond you know HBO Max that that are are being sort of dealt with every day. So when you think about the scope of what leadership is telling us, it's through the lens of a major responsibility to to the country. Um, well before it is any anything about sort of a

you know, uh sort of future prognant this. But at the same time, you know the other messages, there is another side to this, like this is not it's hard to see now it is changing, but there is going to be another side to this and we're going to get there. And the question becomes, you know, what, what are the new habits that are going to be formed, what are the new systems they're going to be created, and how do we be part of that solution as

we come through this. Julie, what about what about yourself? Uh? You know, is uh is your CEO sending the right messages at this time? Is he talking about tough times ahead or being more optimistic? I'm curious about the leadership town So I would say the leadership tone has remained very similar to what it's always been. It's very authentic,

and it is you know. I think that the thing that I personally appreciate about Spotify is that it's a company that will address head you know, head first, what are opportunities and what are our challenges? So that that

tone has remained. Um. I will say that there has been a special attention to the work place and you know, the employees overall, just understanding that people have might have infants or children and trying to balance working and their partners working at the same time too, and just being really thoughtful about, um, you know, how we can balance all of this and manage that. I think I've got two ten year old boys in the basement right now, Um, well,

when they're playing video games. But uh, so they're they're loving a little break from school. But you know, it has been really authentic, and it's been authentic to the user experience and just understanding that it's really about being informed,

connected and grounded and everything that we do. So I wouldn't say that like there has been no Guman gloom, but it's also been very realistic about you know, how do we you know, understand our business now even better moving into this next phase in what this new normal is got it UM? You know, Josh and your case, what's interesting is, you know, you have a senior executive image Universal actually came down with COVID nineteen. Has talked about what that has been like for him. I would

imagine that that does something to a company's culture. Uh not that they're you know what tell me about that? Absolutely, you know that was something that was you know, obviously a shock to all of us. We found out in real time. He kept that UM within a small circle in the beginning and then came public with it. Luckily, from my understanding, he's feeling good and he's doing well now. But our leadership team UM, in my opinion, has led by example, and I think they've done a phenomenal job.

You know, Jeff Shell, who we were just referring to. Brian Roberts and other very very senior and executives have publicly come out and said they're donating a hundred percent of their salaries to COVID nineteen based um, you know, research or whatever, it may be, something to help people along the way. A percent of their salaries is going

towards that. But they've also really cared about the people, knowing this is really tough time, so they've created what I believe a five hundred million dollar fund uh specifically to keep people salaries paid during this really really difficult time. But they've also set up things for our employees that aren't helping us. So, whether it's meditation, whether it's doctors, whether it's access to all these other types of things

that anybody can choose to go into. Literally on my calendar every single day is something that our company is offering to our employees, which has been a really really nice thing to feel throughout this process that that the senior management of our team truly does care about us, and they care about the general public as well. Right, I think to the point of what we're trying to accomplish.

Every single one of our networks needs to have a different sort of messaging because people are coming at this from a different point of view. People are tuning into MSNBC to get real time information. People are tuning into c NBC because they're worried about what's happening to their four oh one case and what's going to happen there. People are turning into Today to get a mixture of everything.

They need something, they need some good news, they need some real news, and Today is It's been a real crutch for a lot of people that way, and then this place is like Bravo where you just need to escape and not hear about COVID nineteen. So everybody's trying to play their part. So I think our management has done a phenomenal job of really, you know, being there

for our people and showing that they truly care. But I also think the way that we're talking to the general public is trying to show that we truly care about them as well. Thank you. Um. One last question for me, just wanted to ask Greg a question media companies in particular. Is there something about the d n A of this industry that you think holds up well in a crisis situation relative to other industries. Just curious to get your read there and thanks again for your time.

Thanks Anny, No, I definitely think so. I think, uh, the media industry has been under so much change if you look back over the last decade and you think about the adversity that has been put through in terms of adaptability, flexible reality, being able to develop new products and services to drive innovation. And while this is a horrible event for all of us, I think the media industry is a little more suited, um, partially in terms

of being able to work uh in this environment. There are many other industries that were not prepared for you know, working virtually. Um. They haven't handled that type of adversity and they're not as adaptable. And I think overall, the industry should come out of this, I think with a tremendous amount of opportunity when that does come, um, and it will be about taking advantage of that opportunity like it always has been, and I think the media industry

is well suited for that. This has been another episode of Strictly Business. Tune in next week for another helping of scintillating conversation with media movers and shakers, and please make sure you subscribe to the podcast to hear future episodes. Also leave a review in Apple Podcast let us know how we're doing