The Next Big Thing panel at CES 2019: The future of media
43:01

The Next Big Thing panel at CES 2019: The future of media

Tech Industry
[MUSIC] [BLANK_AUDIO] Welcome back, everybody. Please join me in welcoming our next session, CNET The Next Big Thing, The Future of Media. [BLANK_AUDIO] [MUSIC] [MUSIC] [BLANK_AUDIO] Hello everybody, and welcome to The Next Big Thing. [BLANK_AUDIO] [APPLAUSE] Nice to have you with us. [APPLAUSE] This is something we're doing for the first time here at the C Space. Many of you may be veterans of our Next Big Thing presentation at the LVCC so welcome to our new place. I'm Brian Cooley, CNET's Editor-at-Large. And I'm Lindsey Turrentine. I am Vice President of Editorial and we are going to take you through what we think will be the most energized part of the technology space in the next few years. A complete revolution in media. And while the change in media may seem like nothing new, it's like, okay media's been changing for a long time. But we're gonna show you and discuss about what's coming up in the next few years, is frankly gonna make, the last few years look like a kind of a warm up act. There are really fundamental seismic shifts that are still in the offing. We're gonna take a look at how we [UNKNOWN] the changes and how we find, how we consume, how we are controlled by media. How that's all gonna change over the next few years. [BLANK_AUDIO] [MUSIC] [MUSIC] These days we consume an almost unimaginable 11 hours a day Of electronic media. And it's only starting with television. We've got phones. We've got tablets. We've got laptops. We've got game consoles. Don't forget radio. And our cross-platform in Dixon hasn't stopped growing since it began. At the dawn of. Interactive. Thanks for joining us this week on CNET Central. If you missed anything don't worry, you can find out more information at our site cnet.tv.com. [MUSIC] The intersection of mobile video and social video was the dominant media trend of 2018. But as we move into 2019, that intersection simply sets the table for an explosion of new media forms to come. [MUSIC] As streaming replaces traditional TV hours and dollars, the footprint of OTT is is becoming almost as big as the footprint of the internet itself. The completion to streaming will complete a conversion of a medium still tinged with day, time, and channel To a direct relationship between shows and viewers at the same time new technologies will allow advertisers to target individuals instead of entire groups of people. A billion dollar bet is being made on the question is there such a thing as mobile video versus just video that happens to be consumed on mobile the question is worth probin.g Because, there will soon be three billion unique customers, around the world. If someone can crack the code for anything. From a new length and form of video serialization, to an explosion of live, user generated video content. [NOISE] [APPLAUSE] These sports are taking a page from the pinnacle of TV advertising, pro sports. With professional players, commentators, and celebrities, and the massive audience that comes along with them. They're giving the stage to competitive gaming like it's never seen before. [BLANK_AUDIO] In 2018, VR was on the verge of over staying its hype, but then along comes 5G to give it the jolt of credibility and responsiveness it needs to make another run at mainstream appeal. Nothing has more potential to reinvent media. [MUSIC] And as cars begin to drive themselves even part of the time, major media players are now looking at vehicles as the next big screen. [MUSIC] And to all of this, integrated commerce. Media will no longer simply tell people what they might want to buy but will become a place to buy as well. Many of the largest players in e-commerce like Google, Amazon, and Walmart have or are making major media investments to compliment that system, and many already have payment platforms. If you think you've seen seismic change in media, you have. But nothing like what's coming next. [MUSIC] Before we bring out an amazing panel to the stage to explore the future of media, we're gonna welcome a special guest who is literally creating a media for the future. About the future. Please welcome. Whoops, I need a microphone for that. Future is not quite here yet, where I don't need this. Alex Kurtzman. Please welcome the Executive Producer of Star Trek: Discovery. [APPLAUSE] [BLANK_AUDIO] Star Trek fans in the room? Yes. It's been a great first season. We're really excited for the second. And before we talk to Alex, we're gonna watch a little bit of the next season, just to set this up. [BLANK_AUDIO] There is a great responsibility at hand. Someone or something is going to end all sentient life in the galaxy. We're in the middle of a fight for the future. Mr. Tyler, we are always in a fight for the future. [NOISE] [MUSIC] Be bold. Be brave. Be courageous. [MUSIC] Welcome to Discovery. [MUSIC] Star Trek Discovery returns January 17th. [APPLAUSE] [APPLAUSE] Alex, you need to produce content that is seen now in a million places. I could be watching Star Trek: Discovery on a bus. I could be watching it on a plane. I could be watching it in a car, and I certainly do watch it at home. How does that change how you think about creating the show? Well I guess the first thing, wow that's loud im sorry. WEll I think the first thing is that the way that consumers are now viewing really anything. The distinction that used to be relegated to just television and movie thinking were very different and what is so exciting to me now is that By blurring that line we can basically take a cinematic experience and bring it into your living room. Mostly because televisions are less expensive and getting bigger and bigger, if you're in the room. And the quality of your iPhone is so high that at the end of the day it's essentially the same. This real experience. So, we start by changing literally the aspect ratio. So if you look at what you're seeing there, you'll see that everything is sort of lower, wider, and it has black bars at the bottom to the top. And that's anamorphic Film. And it's a longer, wider look, and it looks a lot more like film than television. So just by making the choice to change the way we shoot it, we're already beginning to tell you that this isn't gonna feel like normal television. Hm, Jeff Catsungberg and Meg Whitman are about to have something come out within the Quibby framework, some kind of a mobile centric A video platform that we referenced in the video. Do you believe there's such a thing as mobile video? Or is it just when I consume video on a mobile? But that's mobile video. How specific can that concept be?>> I guess the question is how do you innovate? What's the difference? What is the substantive difference in the viewing experience? And, I don't know that answer to that. But, I would say that, yes. One of the things that I find most interesting, now, about the opportunities that we have is, the different formats are giving us different opportunities to tell stories in new ways. And, I think audiences respond to innovation. And, I know they respond to authenticity. And the old formulas of how we use to consume show, television, both in the format itself and in the way we tell the stories have changed in this age, and that's really exciting. So tell us a little bit more about how the way you're telling stories is evolving especially as you think about season two, Are you thinking about building characters in different places at different times for instance? Yes. So, like, we think of it like a continuum, it's not just one season of televison, it's how does this season of television speak to the season before and the season that's coming afterwards, and then, are there caharacters that we can set up In this season that we could break off into little side stories. So for example we did these short tracks this year which are 15 minute shorts. We did four of them and you'll watch the short tracks, you'll have a standalone experience. They'll be hopefully a satisfying individual story. And then when you watch these into a discovery. You'll realize that those stories are actually setting you up for specific episodes and now have a whole new dimension to them. So, that's a really good example of how you can expand the way we tell stories now. Is there a chicken or an egg in this situation of new technology giving you new opportunities? Do artists like you and creators Do you say look, we can do something with this, let's explore it. Or do you think it frequently unlocks existing screaming needs you had to have a broader canvas? Which comes first? Does the technology draw more out of you, or do you finally, the technology's here to contain as much as I have? I think it's a very symbiotic relationship. I think that as long as you stay on top of what people are doing and how they're consuming it, you can start iterating and innovating the way you're telling stories and on what format. I think that, for me, when a new piece of technology's introduced, like when Oculus came out, or you know any version of VR or AR, particularly, which I think is obviously the next big phase of where we're headed. There's gonna be a whole new area of stories to explore in that realm. Right now, the technology isn't quite there yet, and it's limiting. And I've actually gone around, and I've experienced quite a few. I will admit less experience in AR than I have in VR. But once the technology becomes more immersive and you're not so limited in your range of movement, you're gonna see incredible stories begin to emerge. Is that kind of one of the main holdbacks in creating on VR, do you think is this- Very much so, yes. Interesting. Okay. It is. And it's not that you can't have a really cool experience. But there are just limitations to how far you can go with it right now. Okay. All right. Please thank Alex Curtzman for joining us for a special chat and look into the future of Star Trek and media. Thank you very much. Thank you for your time. When is the air date? The 17th of January. 17th, season two. Okay, okay. Season 2 coming soon. Thanks. Thanks Alex. See you later. Thank you. Bye. Thank you. Bye. Thanks. Okay, that was fun, right, yes. Moving down. Yeah, we're moving down here now. We're moving down. We're moving down, hang on, this is all new location for us, get our stagecraft down, okay. All right everybody, let's see now, we're gonna move on to our panel and really dig into some of the stuff that Alex gave us [UNKNOWN] stuff. First, we're going to introduce Yoon Lee, who's SVP of content and services for product innovation at Samsung. Come on onto the stage Yoon. [APPLAUSE] Thank you, Yoon. Come on down, sit by our little table here. Okay. And next up, we have Heather Rivera here from YouTube who is in charge of strategic partnerships. Let's bring on Heather. [APPLAUSE] [APPLAUSE] [LAUGH] All right, one more. [BLANK_AUDIO] [INAUDIBLE] There he is. Toby Redshaw, wanna make sure I got his name right. SVP at 5G Ecosystems and Enterprise Innovation Verizon. Welcome sir. Welcome Toby. [APPLAUSE] [BLANK_AUDIO] Okay. [LAUGH] So we [UNKNOWN] disparate horsepower here. On the panel to get us off to a start. And I think we wanted to kick off with a look at what some of the best places to look for new opportunities? You've heard of content creator Natalie, who's got some very big ideas. What are some best places to look, to reach out and work with people like him that are, as Alex told us, it's a matter of being symbiotic with the user. But I think if you give him more palette to work with, he'll take it, right? Who's got thoughts on some of the best way to feed things like that, to build that bridge first among your brands, for example? [BLANK_AUDIO] I can start on behalf of YouTube. So as the global head of product partnerships for YouTube, I really get a front row seat to a lot of these innovations and I think one of the things that Alex mentioned is how symbiotic that relationship is, and so when you look at some fo the things that YouTube has put out there, we were very early when it comes to 4K, we were very early when it comes to things like VR. Because we dont believe that it is our job necessarily that it is our job to dictate what is going to be popular in the future, but rather enable creators and enable viewers with the tools that they need to develope the content that they want and for viewers to be able to watch and consume the content that they want on whatever device is closest Does that change the way that YouTube thinks about the flexibility of content, and do you think of content typically on one, is there a screen that is primary for YouTube or do you think about that content kind of growing and expanding and behaving differently in different places? So we think it should be on whatever screen the user really wants. And we've seen that with the millennial generation who's primarily on YouTube. They really want to watch whatever they want to watch whenever they want to watch it on whatever device is closest. And so with that framework in mind, we've done a lot of work making sure that content can be viewed in very high quality across A range of devices and platforms, and that goes for content not only that's produced in countries like the US but also in emerging markets. And so one of the really interesting concepts is a lot of times when people talk about mobile video and you think about a mobile screen, most people think about smartphones. But if you look at countries like India today, what they're thinking about a lot are feature phones. And so YouTube is even doing work to make sure that content can be consumed in a great way on a feature phone. [INAUDIBLE] and Samsung has made a lot of efforts over the recent years to attract interesting kinds of content to its platform. You're very big on saying look, come build on Samsung and build experiences here that aren't gonna be found on our competitors Hardware or competitors platforms. What do think about all this when you hear from a content creator like that? Sure. Content and devices are like chicken and egg. You need device to view the content but then you need content to build the device. So we always say lousy device creates great content and great content fuels Lousy device to move to the great device level. So it's actually in my view it's really an evolving thing. And with this 5G and all these technologies coming there's going to be so many more platform Unique to platforms that we haven't experienced before that's going to exist, which will again fuel the content creators to build contents for those platforms. Good examples could be the VR, the screens, and the refrigerators, and etc., etc. Somebody asked me this morning if I thought that cell phones For instance, were just gonna go away because we would be carrying with us wearables that would somehow communicate, we'll be doing everything by voice. And actually that made me wonder is, maybe cellphone don't go away but maybe we take with us some sort of identifier that brings our Content preferences to whatever screen we have to be in front of. Is that the kind of thing that Samsung thinks about? Yeah, so let me take you slightly back, just to kinda give you context on where we start from. And I do this in many speaking sessions. We don't really start from the device level We start from the need level. So a good example is this, I grew up in Korea, I went to high school in Korea. I played in a band in Korea. I still play with my friends in a band in Korea. But I live in Silicon Valley. So I can't play with them physically every time. Either I have to travel to Korea to play or they will have to travel to me. But there is always this need, I wanna play with them, right? That's a driver. If it's easy for 5G to liberate me So that I can just play here, play there and if that comes alive that's great. For some reason the transportation industry did something really crazy and I can be there in five minutes. That's probably the next big thing. So I think there's really a focal point of your experience is going to drive What technology's gonna come next. And it's really important for us to find that drive first. All right,Toby, here's content and here's device, and you're in the middle, figuratively. We should have seated you in the middle. [LAUGH] Cuz that would be the flow. Tell me where you sit in this as a company, especially with the new innovations that are coming? To add more color to the palette of what we're seeing between these two polls. So I think it's the combination of both things that we've seen that we're just massively excited that, if only there was a really super low-latency, fast, fat bandwidth, software-defined, intelligent network that could connect. intelligently to edge intelligence to help the content world connect to the users a little more clearly, a little more intelligently and help the creators develop new formats, volumetric, holographic, participation at a distance. The next gen of motion cap, for example. Taking the cost and the work out of that. So I think there's three things that are gonna happen in content. You're gonna have very, very creative people grab the new technologies and do things that we haven't seen before. I think the. It will enable intelligent to be layered in between the people that create content and the people that consume it. Because right now there is a lot of fog in the middle. Just because of how much there is. And then the third thing that's gonna happen, is the unit cost of getting that distributed will go down and that will create a fly wheel for contents. So We're super excited, of course from a network perspective, we also have riot films that are doing some really really clever things with volumetric, and it's a bold claim that I think maybe a year from now, this will be one of the areas that have transformed the most, between the [UNKNOWN] and [UNKNOWN] 2020. That's fascinating and I think Heather, when you think about things like participatory video I mean, YouTube is already fairly participatory in the sense that audiences feel very connected to the creators on YouTube. How do you think about technology changing the nature of that conversation? Yeah, so I think YouTuve has grown up being known as an authentic platform, that connects content creators with their fans. And so, we've continued to lean in over that over the past several years. And you're gonna continue to see more of that from us. And so just trying to figure out how do we enable creators to reach their fans more directly, what types of tools do we make available to really make that conversation feel a lot closer because in our view, video doesn't need to be a one way experience. It really is interactive and it's two way in that nature. I want to pose a question about VR to all three of you and get your take on it There's a. From our point of view anyway, as an editorial organization, there's a feeling that VR is getting dusty on the shelf. I think one of the pieces we put out today says, VR has worn out its initial welcome, and needs to make another run at success. Your takes, each of you, on VR. Let me start with you [INAUDIBLE]. I think with the 5G low latency, this is gonna be one of the hottest area coming into the future, and I'll give you a reason. Do you think 5G is the lynchpin? I think 5G will be one of the most important components. Let me give you a cool example. Are you a basketball fan by any chance? Moderately. Okay, not everyone can buy a benchside seat right next to Stephen Curry because it's thousands of dollars. Imagine have a 360 camera right there, costing only $1 to buy that seat. With low latency or no latency that you can see basketball, a game from your own vantage point. Something like that could only exist with low latency, something like that is actually not an AI it's a VR, it's an immersive experience so from that angle I think it's gonna be very very cool area that's gonna emerge All right. Heather? I think the VR suffered from what most cool new technologies has is which a lot of hype. In the beginning, a lot of people got really excited about it but the fact of the matter of is that VR is dependent upon on entire ecosystem in order to work. So it takes a certain mindset and skillset in order to create in VR. There's a set of tools that you need to be able to film in VR. And then there's a whole set of devices and things that you need to be able to watch in VR. And so when you have to have all of that come together, you can imagine that it probably takes a little bit longer than people had originally hoped for. And so what I think you're gonna see going forward is all of that coming together a lot faster. And so on the YouTube side. We've realized the challenges that creators have in filming in VR and we've been working hard to help them make that easier. And so I think it's going to be kind of that dance, again, kind of that symbiotic relationship between all of the different players in the ecosystem to make that come to fruition. How long do you think it will take for creators to change their thinking to a 360 kind of thinking? I mean, Those of us wo make content have been making content from one direction for a very long time. It's going to be a revolution the way we think about stage craft. So I've never been good at giving predictions so I wont put a timeline on it, but I'll say that I think it doesn't have to just be 360 either. We've done a lot of work with 180. And so making that even more accesible. So I think there's a lot of ways we can take baby steps Toward a broader goal of 360 eventually at some point. So Toby, I think more burden is laid at the feet of VR or 5G via VR than anything, except maybe automotive. Everyone expects 5G to come in and be the VR savior. If you subscribe to the idea that it needs saving or refreshing. Is that giving it, is that putting too much burden on 5G to ay VR, is something else supposed to invigorate VR? I think, I agree with what we've just had but I may be a little bit more exuberent about VR I think you're going to see not just the I can be tehre without being there, I can now create in this new environment I think you're going to change storytelling a little bit. It's going to especially in user-generated content worlds. It's going to allow people to participate in stories and be part of the story and humans love stories, but they also love to interact and be part of that and so once VR jumps to I'm there with my friends. I'm there connecting. With the social side, it'll accelerate. The other thing that's gonna accelerate VR is the enterprise and the business side is gonna find really pragmatic uses for real-time available VR, whether it's to relearn something or monitor something or being in a specific situation. From a distance, I think you're gonna see, remember the consumerization of IT that started with Apple. I think you're gonna see a lot of things emerge in the enterprise that are gonna push back into the consumer world. And that for the first time will become a pretty cool fly world where Flywheel where enterprise and consumer feed off each other. Toby, what do you think is best preparing consumers right now for that world is gonna be like? Because it seems like it will be fantastically different. So yeah, I don't worry about that at all because there are so many brilliant, creative, surprising People that grab these technologies and do things that sort of fold into the category of I didn't see that coming. Right, and the real whoa factor and I think that these technologies for the first time rather than taking waste out of a processor being shiny and cool. They play to really deep human aspect, right and 5G's going to able Humans to feel stories much more deeply and connect with them. To move beyond the content, to experiences. And I think that's just a fundamental part of the human condition. Right? Reading a book is awesome. Being in the book different.>> [LAUGHTER] Alright, we've gotten a good taste hear of a variety of different sorta creative visions. Content experience visions. Things that, the way things may feel different, and we may relate to them differently in media in the future. Now let's take a look, let's go look at a short video here that's gonna help us start turning a corner toward the building blocks, very specifically, that we're gonna use and in what order to get to some of this future. Let's take a look. [BLANK_AUDIO] [MUSIC] [MUSIC] It's 2018 and there is one thing you can still count on from TV's golden era. You'll probably see the same commercial every 10 minutes. [MUSIC] No challenge room is larger than the coming challenges of ad target Moving from broad demographic to showing ads that are aimed at the individual viewer. But this is hardly the time when consumers want to hear they're being parsed in greater detail. Just when it seemed like Facebook's data scanda couldn't get any worse, it did. We didn't take a broad enough view of our responsibility And that was a big mistake. As we've seen in the last year, consumers and regulators have become impatient with the same old privacy practices. Digital media companies must establish a new kind of trust, and because they're late to do that, regulators will demand it. Why should we trust? Facebook to make the necessary changes to ensure user privacy. [MUSIC] With new targeting comes a continued shift toward programmatic ad buying. A trend that's been upending some pretty big-sized digital publishers. And threatens to do something very similar to television ad buying and the value within it, as well as to any online video that emulates The value of television. But potentially turning yesterdays premium ad dollars into todays digital dimes. One answer is commerce integration but tread carefully. Consumers will get there backs up at any platform that seems to exist to harvest their dollars. And consumers may also start to push back at subscriptions in the year or two ahead. As their being hit with a hail storm of them from video services Skinny bundles to single-brand video channels. After 20 years of being trained to believe everything is free on the web, some backlash is possible. 5G's challenge is nuanced. It has to unlock a whole world of new media experiences in our minds, not just make existing media experiences a little faster. Think about AR, VR, high performance gaming, available in all of my places without compromise. And many carriers seem to telegraph a role out of 5G that will be more complementary to 4G, rather than trying to kill it off as quickly as possible. That could create a forked road for content creators who may have to create a path for the 5G user and continue to do one for the 4G customer, which could add cost and complexity. And we have ask, how do VR and AR make media better and not just deeper? The continued popularity of lean back linear TV, suggest that VR and AR might jut be a niche proposition. Of course consumer electronics will always bend to the needs of the media morphings. Let's find out how far have to bend and what direction. [MUSIC] [BLANK_AUDIO] So this is an exciting time. We also know we have a lot to do, yet. And, I think that we can look at this as an opportunity to measure what's ahead. We're thrilled about what's coming. We know that we're in the middle of a lot of change. And, we're really just seeing the beginning. Let's talk about what those challenges are. But, also,the exciting road to getting- Some of the ones that we get a lot of questions about around challenges to new forms of media keep coming back to the idea of commerce, and how that needs to become part of the media experience more and more, as perhaps the advertising ecosystem, is at least transvalued, if not devalued. What are your thoughts on what can become a successful way Very simply to put it crassly, sell in show beyond what we're doing today which is pretty limited. Whose got ideas on where any of your platforms may go in that direction? You know I think advertisement it was there because that was probably One of the only business model that was supporting all these content consumption, right. But at the same time humans do have interest for relevant information. So I think really the boundary is blowing. Is that an add or is that an irrelevant information? And I think the way I am seeing this is we're actually going into a different business model. Not just an advertisement and a targeted advertising. I don't really see it as advertising anymore. It's relevant information that you would like to consume. And it happens to generate revenue, which then can be distributed into the broader ecosystem. Heather, you must think about this. I know that my 12-year old spends a certain amount of her allowance giving to Maker and Content Creator in supporting their campaigns. That's just a tiny bit of this. How much do you see people paying for the content directly? Yeah, so I think there's a lot of room for a whole lot of different formats for monetization to take place. So I think YouTube is at its core fundamentally an advertising business. So we definitely believe that ads should be relevant, they should be content. That people want to consume. But then on top of that we've also taken strides in the subscriptions business model, so that's another model that we've been having some success in with YouTube TV, YouTube Premium, YouTube Music Premium. And then when you think about alternative forms of monetization that we've been bringing to the creators, we've been experimenting in areas like merchandise. Some of what you've been talking about which are kind of sponsorships or the channel memberships where users can actually choose to give money directly to a creator to enable them to go about their great work. So I think we're trying to bring to bear a whole plethora of different ways for creators to monetize so that they have a choice. Because at the end of the days that's what we care about more than anything is that the creators have choice And that the viewers have choice as well. [UNKNOWN] what tools can you give people, creators, publishers to better or differently monetize in the future. So I think the whole ecosystem changes, all right? And I think choice is hugely important, that the one key thing that people don't typically get about 5G is that it's A software defined cloud native network, okay what the heck does that mean? Well it means that the computing at the edge of the network is now not just for the network, it's software, right? So I can use that software for anything. So a 5G network literally has many clouds at the edge, we call that edge computing. So what do I do with edge computing with really low latency I build intelligence into that edge? So the entire telco network is gonna become much more infused with intelligence. So your choices become more intelligent, the patterns become more intelligent. A lot of times as a consumer, you don't really want a choice. You want your experiences And your commercial endeavors and the things you do through life to be pattern matched and proactive and preventative and peer connected. Why isn't that happening automatically for me? Boy, if only we had a big network that was super low latency, that had intelligent at the edge Just as AI is really starting to fly along. I think that's soup comes together and clever companies like these will jump in there and change that. Now last order on that the, the pricing models and how slice and dice it that will be a plethora of things, right? There are a fantastic creative people like Alex in content There are just as creative people inside pricing programs inside companies. So you'll get all of those. But at least it'll match a little better, and it'll be a much more intelligent place. I want to ask you a follow up on that. What is your view, officially or otherwise, about carriers becoming media companies? Not in the big sense of being big studios, but carriers becoming media sources. It's been hit or miss in the history of technology, not every company has the right to be a taste maker, which is what a media company has to be. What can you tell us about where you wanna fit in that? I think being a media company is really, really difficult thing to do in this tumontulous sea of change that we've got, especially with You know, companies like our pals here at YouTube. I think being a network provider, building out 5G and the intelligence that goes with that, whether it's for consumers or enterprise, I think that's really, really hard. I think trying to marry those two and be one thing Not sure that's a bet. I guess the politest way I can say is I think we're really, really happy with our strategy. [LAUGH] This is a question for any of you. None of you represents the payment or the payment modeling part of this. But how important is easy payments? For all of this customization and personalization, being able to instantly pay for something that maybe an AI system is feeding to you. Maybe it's not something you're already paying for, but you might want to. It seems to me that the sign up, the log in, the password, all of that is a barrier to consumption. And you're all just one notch away from a payment system within your Individual orbits, so you may not all be in the payer business but you're all down the hall from that unit. Well, we do have our own payment system called Samsung and yes, there are barriers, the biggest barriers are the steps to get to both registering and paying So, you know, it's a long effort trying to minimize it and reduce it, but our statistics really show, once we have a very simple technology to get to, basically, it's removing all the frictions between you and wanting to get the service or content or goods. We're seeing a huge uptake. So I think the payment is just inevitable. It's just gonna happen. [BLANK_AUDIO] I want to talk a little specifically about 5G right now. Which is probably the most talked about of the tactical technologies here at CES this year. A lot of various angles. I mean, there is an angle of 5G to everything going on at the show this year. So I wanna get specific on that. Particularly from the device and the network point of view. We've talked about 5G a couple times now in the discussion, I wanna get down to the brass tacks of how we motivate consumers to embrace the fact that it does different things, not just faster things. Toby let's start with you, what is the message that needs to get out there? Because I think consumers right now think it's 4G that goes faster. Which is gonna limit their ability to perceive new content on media experiences on it. Yeah so sure it's faster, it's crazy faster. But it's much fatter bandwidth, the kind of experiences we were talking about being at the basketball game. Being inside the theatre, being on the factory floor. The volumetric and holographic approaches that just aren't possible on 4G. But then layer on top of that what you can do with intelligence and geo-intelligence. It's going to be the spark that creates a next generation for VR content, for AR content. I would expect my world to be AR Tagged in an intelligent network environment. So I think it's not a build it and they will come. It's a symbiotic sort of race to great, where we're already working in the ecosystem With startups and creators that are building stuff that the 5G is so much more powerful than 4G. The wow factor is just gonna be the gravitational pull. I mean, if I had told you three, four years ago you could sit at the edge of a basketball game and be there, you'd go yeah, that's That's Star Trek, we gotta get Alex back out here, right? But, it's really gonna be a lot of- A lot of this is show them, don't tell them cuz I don't think consumers have a lot of appetite for low latency and things in that M2M ability and network slicing. They just want to say what's the new experience and they may find out later that 5G enabled it. Right? Yes, and there will be a really big difference between what has 5G inside and what doesn't, because a lot of the stuff we're building in the lab, a lot of the things that we've gotten a lot of exposure on, just flat don't work without it, right? Now, you start talking to a consumer about spectrum and [UNKNOWN] and their eyes [UNKNOWN] over It really is a put your hands on it, experience it, feel it. And I promise you it's gonna be mind blowing. In how many years? The distant, distant future of 2019 going into 2020. [LAUGH] Love it. AKA tomorrow. We've talked a lot about VR and I am fascinated by the AR promise because I actually think that there's a smoother transition from the worldly known now to where we're going with AR because people don't have to remove themselves from the situation that they're in. Is that something that you've spent some time thinking about? Absolutely, absolutely. And you know, I think, Brian, you said that people won't care about latency, you know, M to M, all of that. I think consumers are not being able to articulate, but we really are just longing for no latency. You know. Yeah. We just don't know what it's called. We just don't know what it's called. You know, for example This morning, I spoke to, I mean, via text messaging, friends and colleagues in five different continents and several different countries, which was seriously a Star Trek experience back in the 80's, right? But we're doing that. We should be able to do that concurrently, not just sending text messages over. We should be able to do that concurrently. When the 5G world comes so I can place literally with my band in Korea without going to Korea. Now coming back to your AR, we look up information so webpage is becoming is already like a source for information You know, who knows, maybe camera is like your window to the world. So you know just instead of pulling your phone and up you just stick it up and it has all the information that you are intending on looking up which again taps into the AI the network and everything which is AR, so. If you imagine that type of scenarios I think this is really a very, very near distance future. What do you play? I play the drums. So you know I hold a beat so they can't move forward. So that [UNKNOWN] is extrememly importnant to you? Exactly. [LAUGH] Alright Heather, you get the last word as we wrap up here today. Give me an idea of whats on YouTube and from your particular point of view with a very forward looking and embracing of other ideas in technologies, Point of view, what is job one for you in 2019 to move this discussion forward and really reinvent YouTube? I mean, YouTube's such a big part of the media landscape, we could just say that alone is a big block. But your contribution to reinventing media this year, what's on your list, number one? Well, I think especially speaking from my role on the partnership side, one of YouTube's main roles is to be an enabler. And so to be an enabler for our friends on the network side, as well as the devices side as they continue to innovate So thinking about how can YouTube can actually serve as that key use case, so that when consumers hear these terms like 5G, or VR, they actually know what it means. And so it means something to them, and they realize why they should care. Okay, can we have a hand for our panel? We're out of time now, but I really think we had a great set of insights here for you Heather and Toby. Thank you so much, really enjoyed this converstation. Thank you yeah, we really enjoyed it, thank you. We hope you enjoyed it as well everybody.

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