The Future of AI Art Generation And How Production Companies Are So Profitable

alright so what's going on so basically there's streaming wars going on netflix disney hulu everything's everybody's fighting for subscribers okay well how am i gonna differentiate from if i'm netflix how to differentiate from hulu an hbo and all this stuff basically they need original content okay so that's created this like huge imbalance of there used to be a lot of content and a small amount of distribution now there's is a lot of distribution fighting for small amount of content and all the distribution players have just decided like the prizes is big let's lose money for a lot of like several years and invest billions in the content and like let's be the last person standing and so they're they're investing on what you call a j curve where the curve goes down you lose a bunch of money and then a j like a j goes way up and you make money later what that means for these production companies is they'll over pay there is a bidding more and they are willing to over pay for my contact alright in this episode we are talking about the latest industry that i am totally completely obsessed with i almost can't think of anything else and i'm not sure why other people aren't freaking out about this so that i go on a rant about that what else we got we talked about mark manson and how he's got this amazing empire that on this book called the subtle art of not giving an an f i'll say f there and how it started just as a blog post and turned into this amazing business that's making tens of millions of dollars for for for him and and then we also talked about production companies and how the breakdown is actually way better than we thought you know the the economics and how it works is far more fascinating than we anticipated alright joy alright we're live dude i in a horrible mood and the bad part about this job is like you have to like immediately snap out of a a horrible mood and i can't exactly explain all the details about why i'm in the bad mood but basically involves like a real estate deal that i did and someone i feel is trying to take advantage of me and here's what i think happens and tell me if this happens to you i feel like we i do a deal with someone or whether it's like a small deal or a big deal and then they like learn about what our stupid podcast is named or they google us but it's mostly the fact that the podcast such a horrible name and then they like you know you get like you don't like in hawaii where they got like the local price of they got the other guy price it's like like it's like i get the other guy price you know what i mean and if the even if it's just a little of another guy discrepancy it pisses me off that's hilarious yeah i i i don't think that happens to me no ones have ever referenced i've never got that feeling in fact i actually get a bunch of credit the other way people are like look you know i don't wanna offend you with like a low ball offer on your you know on whatever and whatever it is i know this money doesn't matter to you and i'm like dude like i'm i'm showing up here the money matter i like you know like please don't not give me the money because you think it won't matter to me like you know i think does right so so i think the it goes it cuts a little bit both ways people like i hate the thing where it's just like dude sake so much for we're taking i know how busy you are i'm like dude i just like sit around at my boss all day like you know i don't know what don't know what you think i'm doing but like my son just threw up on me like two hours ago this is awesome compared to that like you know what what do you what do you what do you think my life is that it's so you know so busy and interesting because it's really not yeah it's funny we will say that i'm like i am busy i'm talking to people a day but like i don't think to day that like talking to just like slack and back and forth and like having conversations i remember well me first started the hustle like basically these like producers and this happens all the time these producers they email just tons of people who are even remotely interesting and they're like hey can we make a tv show about you and obviously like they didn't know what they're getting into like i'm not we weren't even remotely interesting enough but i'm like you guys do realize we're just sitting in front of a computer all day right like it's like the most un fascinating uni interesting thing it's not interesting at all but dude i'm shocked you don't get like that that that that other guy pricing it it do you you you have a b and right yeah is your house fancy you think or just normal normal nice my house is a house not fancy my house isn't fancy either and just like i don't know when they like maybe when they see the like at home during today i don't know why but like i just i'm always nervous i'm like wait a minute my neighbor's paying only a hundred fifty a month for their landscaping why am i gonna why are you telling me two fifty know what i mean i feel like that stuff happens has a podcast get him could you get your get your wallet out boys he's got a podcast so whatever i'm past it i gotta move past it that's so funny you said that thing about filming by the way i had that same idea back of the day at monkey and inferno because we have this really nice office and i thought building startups was the coolest thing in the world and i was like why isn't there a documentary crew here like you know the office but i'm the cool michael scott right like i'm awesome and so you know had watched hard knocks on hbo which basically makes like nfl training camp look like so epic so like you you you start rooting for the stories all the stuff so i was have like mics on the players and you hear like get them hey man what you're doing with like you hear like them talking like the pads hitting you know what i mean it's like good yeah but then it also extends and it's like what you're doing it's like sorry man my i'm just having a lot of trouble at home and it's was like cue the music and they cut to the backstory of like you know what's going on at home and i was like yeah and we got these stories now we're trying to make it in the the rough and tumble world of social media and i was like you know so it's was like i thought we were cool and then this like filmmaker type person came to the office they're like wow incredible place quite day i was like what you mean like normal day he's like everyone just sitting there with their headphones on like not talking to each i'm like oh that's what we do all day he's like well what would we film and i was like well sometimes we have like a meeting where we look at the numbers i guess yeah i guess you're right where lame is hell and so yeah that that ended so a lame i i it's always embarrassing with like i sometimes our address and in the daily email was in our email and people would stop by and i'm like yeah so this is the one room that we sit down in there's the bathroom you go the left side of the right side wanna see what it looks like from this corner it's like we just sit here and don't talk sometimes that's for three hours out a time there's music playing in the background every once in a while your office was hilarious it's like why do the dogs sit in chairs and the people have to sit on the ground like hello dogs nice it's like why you know what's going on here guys is there only peanut butter in the kitchen yeah dude i to see like a jar peanut butter every two days that was my day so then let me tell you this other interesting thing so i don't know if you remember this but there was that's so funny by the way you remember the peanut butter i would eat so much peanut butter we also we also used to do eating contests once a month that's like a fun thing because like we are idiots and we didn't have a lot of money to like go into a family or like a team building thing and we would just go and buy like five hundred burger king chicken mc because that's only like fifty bucks and we'd be like the first person eat a hundred wins which is a horrible idea for dozens of reasons the first reason being everyone's sick afterwards it can't work the second reason being it's just stupid and the third reason being like no one does it and they just p and we would do a crispy cream eating contest burger king chicken mc nugget contest white castle it was the worst i i was an idiot if i think these videos still exist online when i was doing my very first startup straight out of college which was like two buddies doing this stupid sushi restaurant thing living in one apartment you know like my buddy lived in my closet my c founder lived in my closet and like you know we we all we would basically buy air mattresses and like return them every ninety days to target because we were like oh you could just like get your money back awesome yeah yeah yeah idiot is we're totally live in the eye with this and so basically we we were like i don't know why we were like you know the way to make our restaurant you know our restaurant not open yet but what can we do that's like our scrappy mark i don't know why we even thought this was like even remotely relevant we're like let's get people invested in the journey of building this to do that let's create a youtube channel and we called it the dual and it was me and the the opening clip is like a high noon like a a standoff like we both walked fifteen paces away turned around and looked at each other dramatically and it's like the music's on and then we we would take a challenge from anybody who commented on the youtube channel we would do that thing so i was like oh you're doing a sushi restaurant brush your teeth with was as toothpaste for one minute and so we like did it and then we it's like you know whatever we did these i really dumb things so you gotta see they're like in this apartment me crappy ugly can it was pretty big i mean you had literally dozens of subscribers i remember we i went out to a casino one time and my sister was in town and this guy goes you're the was guy and my sister was like what are you famous and like i was like what am my famous and it like is like the first hint of what was you know fast forward twelve years it created the podcast like in that moment i was like this feels nice right if i do dumb shit people will then know me and then it ends after that or they let open this like and all i tacked on later was and then i could sell cohort based courses you know that that became the the endpoint but it was long story short i if you remember when club house was popping off there was this group of also people in college like people just graduated in college in college that created that show shoot your shot do you remember that yeah it was popular like really popular for four weeks basically and if i remember correctly it was like three good looking women and they would call up a guy and the guy would hit on or would the girls make fun of the guy i forget so they created a room that was called nyu girls nyu girls on club house which is already interesting because club was just s f dudes and so you go from s f dudes to nyu girls that's like a major like know you know walking into a a a room full of bears with the pocket full of honey i was like well what's going on there's there's interesting people on this app just like you just imagine a bunch of like good looking soho women who hang out with james f write poetry and like you know don't wear bras like like that's like it's like stereotypical use not a yeah there's already no bras on club house but now there's girls with no bras i right like so anyways they create the show and shoot your shot was basically who call up a awkward tech dude onto this and he got to like shoot his shot kinda like basically like a a a ultra budget version of the bachelor's like come on here and spit game at one of these girls and we're gonna talk for twenty minutes and we can either boot you off or we like you and like you're in the group you you kinda passed the right of passing thing a little dating show and so it started organically but it got to be like the most popular show on club house which was you know the small pond syndrome right like you were the best thing in a small little growing pond and so anyways it wasn't embarrassed to listen to i was embarrassed i was like it was it wasn't bad but i was like they're gonna make fun of them oh don't make fun of them or like don't would say something stupid guy please like i was ready for the men like don't do not to screw up yeah you know they would get out say be like hey you know my name is you know ak bar and you know typical sas guy and they're like sassy guy and then he's like no like sas like b b sas but what are you what are you saying are what these words ak bar words so anyways they do you know what they're doing now so the fact that the fact that you said that phrase about them i'm already on board like in yeah yeah yeah not more listening to this somewhere he's like there's i could do it again yeah i was like i in my life so i met the main girl who was behind it i think her name is devin and we did a zoom call you know the you and she's like what's up nerd yes and guess what loved it now like i did the zip quote you know when you be a founder her like within sometimes within sixty seconds you're like alright you're a star so you're a star that's established now now i just gotta figure out is this your dumb idea you're kinda dumb idea or you're a good idea because you're gonna go through probably all three and i just gotta figure out where you're at in life have you met founders or this for sure and it's just like you're you're you're not you're not there yet but i i i still am interested in buying the stock and getting it i think that's why a lot people invested in me at the hustle it's same thing with me like i'm like god people gave us this idea for our sushi restaurant like you know and they were helping us and they really liked us i i thought that meant we have a good business idea and actually what was happening but now that i'm i'm in that position i'm like they're just like oh this guy's gonna do shit i like this guy's mojo this is his dumb idea and like you know whatever i'm on board to get to the good idea like i'd like to start this now yeah so that as he figures this shit out you know things good things happen that's how i felt about this girl and so she if she like an nyu woman like is she like that age yes she was she was at nyu and then she graduated and so now she's like i know shortly out nyu so she's raised six million dollars now what to build her show mad reality so the the old thing was nyu girls roast tech guys that's what the room was called on club house which was great and now it's called mad realities mad realities is they have a it's a they they they went to like web three and like all the stuff right like you know i don't know if you need to do the basically gave lf entities out to the audience audience gets to vote it's like the bachelor but the audience like votes on what's gonna happen in the show and so it's a reality show where the viewers kind of like you know they can kind of help fork the show and and and engage with the plot in some way and fans vote them off or whatever and so they created the show you can be an n holder cut it you get a you're a rose holder like i know like they've raised i think a hundred and seventy two eth so what is that today like at today's prices that's like two hundred fifty grand of sales of their n so not not huge but you know not terrible but like the a plus firm in crypto paradigm invested in it led the round i think do they do is there reputation to do anything that's decent or they selective paradigm they're a little mix of both like they're the smart guys in the room but i also think like part of being the smart guy you know like the smart guy starts to do weird and crazy shit you're like you sure this makes sense and they're like no it doesn't but that's why it makes the most sense like alright you know like like founders funny you you just invested in like i don't know like this plant that like only causes you to hall in a bad way they're like hall hallucinations have a bad rap and you're like alright that like in thirty years solution solutions will be your morning cup of coffee and you're like i don't think that's true but you're so smart at you're good at chess and math like i guess i'll just defer to you on everything in life that's you you chase in two thousand right you know what you're doing you know like your hobby is crypto photography and you created paypal so like i guess i'll roll with you on this like you know kombucha that you're investing in even though it doesn't really seem like that big of an idea so anyways that that's kind of what what what i felt like was going on here like here's their investors so paradigm led it pierce hilton pac mccormick you know like scott be friend of the pod you know our or homie who's super smart but i think you know when i met this well oh there's like a bunch of names i don't recognize meant that like you know probably you know i don't know ed dj or something people i don't know i are maybe yeah you have to like leave your house to know these people and so i'm out you know the but but i thought this is kind of interesting like to create a show and i've actually been i don't think that this is so two things can't came in mind one was when you're a star you're gonna get funded to do some dumb shit and that's okay actually think it's a smart idea to like back these star people because they're gonna do amazing things in their life as long as they just keep taking attempts i think this is probably not her best idea but you three years from now whatever she's building is probably gonna be amazing i'm on their site and i'm just skimming through their videos i don't know man it seems like they're executing kinda well on maybe an a dumb idea it seems like a dumb idea but like my wife is a very smart you know tech woman and she like is obsessed with the bachelor the bachelorette at whatever i don't even know what it is like we have to have we have it in the house i know i think it's like tuesday at eight o'clock it's like on and like way to throw people off your trail there say the wrong date yeah like you don't sit down every monday with your with your glass ro with sarah and you guys don't watch this together holding holding toes i can that'd be weird i i can't stand it all i know is this season it's two women picking dudes and i just don't like i i i don't like the thing at all but i know that it's a huge deal it's still like a huge deal and my wife sarah is like talking to all of her friends about it consistently so like i don't know man this is kind of a cool idea so it definitely does seem big and i i actually do think that you and i don't know about you but i don't know anything about the movie business or hollywood or entertainment i don't know anything about that and when people talk to me about like a production company i'm like the fuck is a production company like i don't know what that is but i do know that reese witherspoon own one of them thanks she owned one of that production company thanks and it i got acquired by blacks stone for like five hundred million dollars like a few months ago and i do know that one of the richest black men in america i believe his name is byron allen and when i was i reading about wikipedia i wanted to learn more about what this guy did and i was like talking about his production company and all these shows that he made and like damn whatever this is it's actually much bigger and more organized than i ever even imagined so it's funny you bring that up i bet i've been actually in the lab it's not ready yet we're gonna take it out for a spin right now which is i've been in a lab learning about production companies and i wanna tell you kind of like here's the here's my can i give you just like random rant like it's hard to understand right normally i have to have like a packaged like a take on it that's what i like to be you brought it up so let me give you the un unpack unfiltered raw yeah we're give me that clip so far yeah exactly exactly hey turn the oven down we don't need it got a spoon in the dough i want this content extra gooey so alright so what's going on so basically there's streaming wars going on netflix disney hulu everybody's fighting for subscribers okay well how am i gonna differentiate from if i'm netflix how to differentiate from hulu an hbo and all this stuff basically they need original content okay so that's created this like huge imbalance of there used to be a lot of content and a small amount of distribution now there's is a lot of distribution fighting for a small amount of content and all the distribution players have just decided like the prize is big let's lose money for a lot of like several years and invest billions in the content and like let's be the last person standing and so they're they're investing on what you call it a j curve where the curve goes down you lose a bunch of money and then a j like a j it goes way up and you make money later what that means for these production companies is they'll over pay there is a bidding more and they're are willing to over pay for my content and so so like just the last year basically ruth witherspoon lebron will smith kevin hart they have sold stakes in their production companies so like for example kevin hart he has something called heartbeat he raised a hundred million from private equity for fifteen percent of the company six hundred fifty million dollar valuation kevin hart kevin hart fifty percent of their revenue comes from the studio arm which they produce shows for peacock for netflix and know they make movies and shows explain what that means so they have riders on staff or riders come to them with an idea they go this is intriguing we're gonna pay money and we're gonna pay a hundred or five hundred thousand dollars we're gonna get some actors and a set we're gonna make one or two episodes of this we're gonna shop it around and then someone will buy and we make profit exactly so i'm gonna use a hollywood term that i don't know how to use but i'm just like you know whip it out here they option it what does it mean when they option it's like you know they basically like it's like they take an option on the future of this thing and they basically take you know they create a sizzle reel or it like a two minute teaser or they create a pilot or they create nothing they just have the pitch in the concept and your kevin hart you go walk into six studios you say it's a movie where you know me and a tall guy you know we you know we or coworkers that don't like each other but then we get trapped in an elevator and they're like love it we'll take it you know and you're like you know how much does it need like we're gonna need a hundred million dollars to do this of that you're gonna pay the production company x millions of dollars to go produce this movie there's some margin in that and then you know they're gonna and then you're gonna you know whatever the revenue or the upside would be you know of the project we're gonna have some some split and presumably also has other you know businesses that that produce produced so fifty percent come from the studio arm well what's the other fifty it's a combination of other things like content licensing brand consulting work for companies like p and g lyft sam's club stuff like that i don't know what he's doing but like that's kevin hart business but but and the value here is presumably kevin hart and team know about what type of content gets eyeballs and gets engagement they presumably have connections with all the big players and they have some money that they'll finance things upfront and and and that's they're curator and operators and they're the influencer so it it's it's like you know everybody kinda knew hey if you go get to a list star you put tom cruise in the movie more people are gonna watch well what these guys have realized the lebron threw we reese witherspoon her kevin hart the rock he has his on production company what they did what they realized is oh let's just go vertically integrated it like let's not just be the talent that helps sell the tickets at box office let's also be the production company that creates the thing and the they and then what they don't do is the streaming platform part they're like okay we'll we'll partner on that but we're gonna do these other components ourselves so they're also you know the big part isn't just that kevin hart knows what people want it's like one of the things people want is kevin hart so he's like cool i'm gonna own a little more of my upside if i do this and you know who crush it this way fucking ryan sea crust i was reading about ryan sea and american idol and this guy that guy is a workhorse and he has a production company that kills it yeah you know you know our buddy pop pop is like the ryan sea of the crypto industry right like he's just everywhere it's like dude you got a morning show and then an afternoon show then you're producing this thing and then at night you do this like wow you your output is unmatched that's run so chris put is crazy because i twenty years i'm on radio three hours a morning for twenty years then i do this then put on my suit then i host this then i produced the he produced the kardashian show yeah and then he's like then i go to american idol then after american idol i go do this other things like jeez man like like blink you know what's going on these grand man that then there's reese witherspoon she sold her company they they made the morning show which was that big show on apple tv plus big little lies for hbo she sold that to candle media which is basically like a bunch of disney execs spun off and create with like blacks stone back them for like a billion dollars or whatever and so she sold her entertainment company to them nine hundred million she created shows around women that's like her stick and so which she's awesome i'm a big re fan reese witherspoon at brad pitt if you're in it i go to it you called a reese witherspoon spoon earlier and i just thought that was a nice like touch i had never heard that that rendition before i like to remix so so you know i how much money this just reese you know how much money her thing made hundred and twenty million in twenty twenty one in revenue apparently they expect revenue so expected to double it to three hundred and ten million in twenty twenty two so blacks paid like roughly a seven x revenue of where they bought them they bought so it's kinda crazy and so they basically they don't own any ownership they make the show for the streaming service and and then by the way they also when they bought the company she also has a book club that's like ridiculous do you know about her also has a clothing brand the clothing brand brand wasn't a part of it but diaper james or dapper james or something like that what's it called i don't know know dapper baby something like that and then she has a book club it's sunshine something like hello sunshine book club is that what it's called i think it's just called reese's book club but it has two million followers or members in it i don't that's like kind of a a silly number so what she does is she promotes your favorite books and then what she does is she goes to those books she's like hey i'm about to blow your ass up but also i want the option rights to make a show out of your book if i can go that and so she's like market tests the books with her book club makes money there uses that leverage to get the rights to that book to make a show out of it and then sells the show rights to the next gift is great man she's great hey you know like cut throat you know like media mo or wow like you know innocent reese is is just like that's an amazing model so yeah that i think that's kinda crazy and also she also sold i think the data so like you know like either like you can like the the people who bought it i think they can like you know access that membership of the book club and then the data around them of what they like what they discount so long story short this mad realities thing you kinda just did the pitch for them where i'm like okay the macro thing that's as an uneducated person that's that's mildly interesting that's a that's an interesting story you you kinda sold like this actually could be a huge thing this could be as big as any other tech company almost so that's interesting this young woman doesn't have you know she doesn't have the clout or connections likely that reese or whoever has but like she's not a charm i buy it and and the hustle and i think if i was her so here's my brainstorm for her i think i'm might i told her this at some point but whatever i think if i was her i would not be trying to create this like standalone show so i would immediately have been shopping this i would say hey here's the deal i can make you the next too hot to handle love island love is blind i'm gonna make one of these shows and what i would first do is i would build this i would build the audience on tiktok or snapchat so i first go and sell it to the social platforms that also want original cool content for a small amount of money i'd say hey i'm gonna create cool dating i'm gonna create a dating show on top of tiktok what's that work to for you they'll say oh like we'll give you three hundred thousand or a million dollars out of our creator fund yeah like because tiktok has i think a two hundred million dollar creator so i'd go to them and be i'd go get a million million and a half dollars to create the tiktok dating show and then i would just take that popularity and i would say hey netflix hey whoever we have the small cult following and we could build these that you're you know bachelor these speak to like you know thirty seven year old women and up or whatever you know some random yeah i just kinda pitch it as a older demographic i'd say you know i can get you the sort of like fourteen to twenty five year old dating show audience because they want this other thing and like you know like and to be basically create a production company that's creating dating shows aimed at my market and try to be the re reese witherspoon of dating reality tv but i'd be not like doing web three crypto and and doing it on my own website i'd be calling and shopping it to where there's a whole bunch of buyers and i'm sure they've they've had conversations i i know they've that's not like new to them but like i think that path can work and i just go all in on that path because i think when you go all in on a path it's very different than just we've thought about that or yeah we've had a couple conversations we've tried it is very different than yes i've bet the whole thing on making that work and come hell high water i'm gonna wake up every morning and figure out how do i go get hulu to buy this how do i go get peacock to buy this how i go get netflix to buy this at what product do i need to create that that's my end customer actually so let me ask you a practical question that that on on how easy this is to pull off so do you know who mark manson is mark manson wrote the book the subtle r alert yeah the subtle art i'm not giving a fuck basically i was like just like i've hung out with them once twice and seemed like a that really nice guy and i was just googling like mark manson house and it said mark manson just sold this tribe becca condo for fifteen million dollars and then i was last year i was reading like the wall street journal or news corp or whatever the company that owns penguin publishing his publisher i rent was reading all their annual report and they said mark manson book like revolutionized our business so like clearly this is a fifty billion dollar company and they're referring to mark constantly so like wow that that's amazing and i started researching his book and it all stemmed from a blog post he he launched a blog one blog called this is the subtle art of not giving you a fuck and he that was a hit and then he took it on and he made it into a book another guy neville neville had angel so he was already successful so it's not exactly the same thing he had a few interesting bits of content out there but then he had this tweet called to get rich and it was long tweet and it like kinda was a hit and if he were a little bit hung like mark was then he could easily par that into something bigger than what it was you know whatever when you so you've done this before as well you've written maybe three different tweets that like got read five or tens of millions of times and i don't know if you would say it was career changing but like it was like somewhat trajectory changing i don't know how big that trajectory is but let's start at the root level of a tweet and like with a tv show or a movie or a broadway show being like the highest form if you were given ten shots and you had one to two weeks per shot for a tweet and then let's say maybe a blog post and then let's say like a podcast and then let's say a youtube video how many of those ten times if you had a week or so to prepare into research do you think would become a hit well there's two versions version of a hit a hit can be it does well and then there's a hit like the club pass threat or the meta threat or stuff like that where it gets to like twenty million people and like they are like those were hits those were like i don't know super hits or grand slams so which one do you mean like the those like absolute bang are just like this gets thousands of likes and get shared maybe red ten thousand times or a hundred thousand times a blog post that gets like let's just say there's friends in seinfeld in the simpsons and then maybe there's like family guy and then maybe there's like the bachelorette at or the bachelor and then like below that it's like famous threads yeah below that was another tv show that's like it's like it's actually it's like a hit but it's like like the goal burrows that there's like people bus on the street and below that there's your threat no i mean like look like you know your version of family guys so far has been one or two things that you've written but then you've had like a bunch of like mild hits so i i think if i the i think to answer your question if i tried the way you said i think seven out of ten would like do very well and then probably one out of every ten would be one out of every ten maybe one out of every twenty yeah so say zero one probably to be like a bang yeah yeah okay so that's just like a tweet which is like easy ish to go viral to create now let's go a step up a youtube video how many youtube videos if you had ten tries you think or let's say twenty could be like a hit honestly i i i know if i'm answer your question the way you want because i kind of think for youtube videos it's a little easier i don't know why i think maybe because we're hung out with mister beast and i was like oh okay i get it like i get it i get what goes into like i get what a viral concept would be that people would click and that they would share i get what the hook would be and i get like you know like have the big payoff off the big reveal and also i haven't done it so you know things seem easier when you haven't done it when you haven't it like gone and tried it actually but i actually think i could have higher hit rate with youtube videos because you get editing and you get like there's whole bunch of things that go into it compared to a twitter thread which is very intellectual like a youtube video you can like lean on other things to make it interesting like the visual like just literally the fact that it's like a visual it's a lean back experience versus like hey read these fifteen tweets and like i hope i've tickle you to like the smart part of your brain enough or you give a shit so i actually think of youtube video i think if i tried it on youtube i think seven or eight out of ten i think would hit like in a major way amp it up you have more time you have a million plus money dollars you have a little bit of a team you have to make a hit show once a quarter or once every six months or once a year at most or at least what do you think you could actually come up with a hit like how hard do you think coming up with a hit would be you have more money you've got more time you have more resources you have to hit you have to have a hit show and it doesn't have to be a a friends but it has to be a we're happy that we gave you money for this and we're gonna keep buying you how many times out of ten do you think you could do that i think that's lower than the youtube video for me personally because then i'll tell you the reason why because that's what we're talking about here yeah when you do a show you're you're basically you bet it all up upfront and then you find out way later the feedback loop is extremely slow compared to youtube youtube it's was like i can go from concept to production to getting the feedback of is as good or bad within a week two weeks something like that and and so i'm gonna get a bunch of reps i can try a bunch of different things and so over the during that process i'll find a formula that works whereas with the show it's probably like i get one one attempt at ever in life it'll take me like a year to produce another year to distribute by the time that's all done whether i was right or wrong i'm gonna be like i just hope that i got it right the first time and so i actually think my hit rate on a show would be way lower i think like you know two out of ten or three out of ten something like that's crazy and then i answer the way you thought or no yeah you did and an interesting exercise i didn't prepare for this but an interesting exercise is to think how many game changing pieces of content like mark's book we'd have to think of a few more examples we could probably think of a lot of books just started with like a really small thing and they're like oh that's an interesting vein let's actually pursue that and and that's like an interesting exercise because his book created tens of millions of dollars with the value and it basically kind of almost on the headline itself it's kind of a winner and then i'm sure the blog post which i haven't even read i'm sure that was actually fire and amazing but i wonder how many amazing bits of content have started with a small little rink ding thing right i i i bet a ton and i also i think for me at least the way i do things i'm that way where it's like oh cool i wanna write the book let's just tweet out one tweet alright now five tweets about that same topic alright now let's tell them to subscribe to a newsletter right like let's just see how much i got what what's resonating over like for example i'll go look at any thread it's ten tweets i'll go see which of these has the most likes that's like not like normally a thread will just have like kinda of like in descending order like the first lot of likes the last week you have a lot of likes and then it'll just fall off from there but what you'll find is when you have a good joke or a good one line or a good analogy or whatever that one tweet will get way more likes and so that's a great way to teach yourself how to speak better how to tweet better how to be more compelling when you do stuff it's to like go look at it and you can do it with other people starts to that's what i do i i go look at other people people's stress and i'm sort of looking at oh that's interesting that one seemed people really like love that one liner okay that's that's cool i like how they did i that's i can pick that up for my game that's crazy yeah by the way one one other numbers here at lebron production company forty five million in twenty twenty revenue or funding revenue hundred million in twenty twenty one and they basically do the same thing where they do a bunch of stuff so they have like uninterrupted which is videos and like it's good i like it they also have like a merchandising apparel they like a clothing brand then they have the hbo series the shop then they made the new space jam movie and so his company spring hill basically created a bunch of these and they did the same thing they wouldn't sold it to others if i was these guys on if i'm if i'm lebron and i have so much income coming from other things i would play a really long game because i think that going and selling the shop to hbo like the shop is actually a pretty dope show it's like this barber shop and i get like you know whatever whoever big actors and nfl players basketball players just shooting the shit and a barber shop setting and it's like really high quality it's great but kinda like m but famous people who are more interesting better and getting haircuts yeah take what you see now yeah trim my beard first of all secondly we're at you know more athletic more successful funnier you know like cool you know and look car is so basically that show was awesome but how many of lebron fans right lebron fans are like mostly younger people like you know that's like if you're a an nba star your your fans go from like you know eight years old on up they don't have hbo and so it's like if i'm him why am i not gonna play the long game jeff bezos style and just saying i'm gonna drop this dope premium content on youtube tiktok instagram whatever and i'm gonna put the whole thing here i'm gonna blow normal content out of the water here because i'm bringing production budgets to this and actually i'm gonna invest like what michael jordan did with his like the last dance legacy the last dance answer like documentary it's like i'm gonna invest a lot of money but i'm like put it i'm gonna like netflix is okay because it's a payroll a lot of people have but i would just put it on youtube and i would basically bet that if i grow my brand my legacy through this content there's a bigger payoff than what the streaming companies are gonna pay me today and i would be willing to invest twenty thirty fifty million dollars in order to build like a billion dollar plus type of brand payoff at the end because you will just be like you know worship in a and adored even more than you already are and so you know you wanna go on one end of the spectrum or the other you wanna go like i'm getting paid a stupid amount of money and it doesn't really matter how many people watch this or i want everybody to watch this and i'll pay money to get it there because there's a bigger payoff for me outside of that you know like the logan paul method where it's like everything's free everything's on youtube i'm in your face and then i'll launch my like energy drink and i think their energy drink does like some stupid number like really well a hundred million dollars a year or something like well i it i i don't know the exact number i heard about on the pod they're were talking about how they did ten like i think it was around ten million in month one of sales but i actually think that the they're that drink business if like mister bees has a forty dollar chocolate business i'm curious if some of these low ticket items can actually become like legitimately great companies as opposed to just okay i think it's hard to sell a right a two dollar drink and make it like work really well so we'll see if they'll make it work but but to all these water companies do amazing but many don't obviously i mean many don't but if you got the distribution right like why is mister beast not doing beast water because he can face pair it with like you know like that boxed water thing where it's like this is better for the earth yeah it's beast likes that shit where he's just like oh we're gonna plant a billion trees and the way we're gonna plant a billion trees is like not doing plastic water bottles alright everybody join me this is mister beast you know aluminum cans sparkling water like go fuck la croix up alright like go go fuck these guys up like mister beast could destroy these guys right like you know like beast water like go into the things go go make products that everybody on earth consumes because you're the mainstream like content maker right so it's like dude when he when he had the chocolate i was like damn dude i wanna have like eat this chocolate because i wanna like you know show you like appreciation for like being here and you brought your item and like yeah sure i'll eat some of it but i felt so bad eating it because i don't like eating that type of stuff i mean i i thought i don't eat a chocolate bar the daily basis well i yeah and i love it and i'm someone felt eating it i was like i don't wanna eat this but i wanna be respectful and kind and because he brought this thing and i like dude you need to make something different that i that that i like can consume guilt free i don't know that many people that just eat chocolate like like a hershey's chocolate bar you know what i mean you're correct in fact that's a filter i have if i just see you just eat that chocolate bar on a tuesday you're like i'm going to begin to distance myself right like i'm trying to be around a type of person that's like you know healthier come to think about i don't know anybody that doesn't actually you know funny story with when i joined monkey inferno i was like so what was it like the last product manager the that the so i joined as a pm product manager the guy who was there before me was this guy alex too who created a million dollar homepage back in the day and now is the founder of calm like a multi billion dollar company but he was he was the boss of monkey inferno not the boss he was a he was like the product manager so he was the product manager there he quit to go start calm and they were like i was like oh how's alex like you know i love that guy's work like you know million dollar home homepage is dope calm interesting like meditation is he just like super zen or what like is he huge on meditation they're like you know that's the funny thing i think they're like i think he needs calm i wouldn't say he is calm i was like what do you mean like you know alex is a fun time dude he's like he loves to hey used to go out like he loves to have drinks like you know he's just like a a young dude like in his twenties in a big city like you know he's he's not like waking up every morning going to his japanese like you know you know it's garden and just like sitting there for eight hours just you know contemplating you know the thoughts in his mine and so i was like what's the crate what's the most degenerate thing i was give me a story what's the most degenerate thing the founder of calm was done there they go i remember one time he came in and he was kinda hung over and he just got a bowl like you know for cereal like i office had like a kitchen was like but instead of cereal he just went but a bunch of m and m's in there with a spoon and just ate it i like i don't know the story is true or false but it's hilarious and i'm running with it that's awesome i don't think at the time if calm ever becomes a thing i'm always gonna remember that you know like you know that story this there's like one of these like hilarious small small stories he's a d dj just like us our saw where's the worst have you heard of hubspot see most crm are a cobb together mess but hubspot is easy to adopt and actually looks gorgeous think i love our crm our software is the best hubspot grow better when we had our office i remember i was having a bad day and when i had bad day i like to like punish myself by eating poorly you know it's like that's like my version of was just like drinking a twelve pack and i it was me and my writer connor we're still in the office at like eight pm and i was like connor today's sucked i was like i looked at him i go bet i can eat this whole jar of unopened skip in three bites and i did and i did and i felt so horrible for like three days and so that was my that was my d dj diet moment was just eaten an entire jar of skip peanut butter in thirty seconds that's crazy alright let me give you the thing i'm currently obsessed with so the thing i'm currently obsessed and i i brought this up maybe three four times people may be sick of this by time by now but i feel like no one is talking about it i feel like not enough people are freaking out about what's going on with artificial intelligence for creating art so we've talked about this before there's gp three which is basically ai that will write something for you so you can just give it a prompt it'll write the essay there's dolly where you just type in a thing it'll generate images like as if you searched it on google but i now have like a bigger picture view of this which is you know like in the early days of the web the big winner was search engines yeah so you you know google obviously was like a search engine because it's like oh the internet basically the technology technologies now put a bunch of information out there so we need a search engine to basically find the thing we want now what's happening is you have a generation engine right a generative engine is you go search for the thing and it creates it for you right so it's like it's that's just like right there is like a mind concept instead of searching the internet for a thing that might be out there what's the closest thing to what i want it's just to say i i have basically the genie from aladdin and i can go say play me a song that mixes like kinda like beethoven and kanye but it's about you know taking mushrooms and literally ai will just create a song and guess what it doesn't suck and to me this is so insane this is so mind blowing every demo i see i'm just like i drop immediately what i'm doing i'm like what i'm doing is stupid like oh like cool a podcast you know like oh what you what what am i doing like talking to my mother who cares about my mother there's ai that can create shit that you just like spit out of your mouth and so i think i really just wanna go down this rabbit hole and figure out what all this is gonna be gonna be able to do now there's this new thing called stable diffusion have you seen this one stable diffusion is the the new demo that came out unlike dolly they basically they're they didn't like kinda pay wallet and so anybody can go and and use it and you just type in a prompt so you're like like go to the subreddit stable so go to stable diffusion subreddit just to see like what people create so says r slash stable diffusion so just look at the top thing right so i look at like let me show you a good one okay go to the one that says wendy's do you see it like scroll down maybe hot from wednesday today or it's hot i just like normal sorting so hot and then go down five and just look at wendy's oh yeah oh my god and this is awesome so how does this work so basically you just type in like the prompt right so the prompt that he gave was a beautiful portrait of wendy's mascot intricate elegant elegant and highly detailed and then it just creates this like beautiful red headed girl holding a burger with fries and it's like it looks like this incredible art and and so you could just and then you you could just you just hit the dream button that was the the button like you know the google button is like search or i'm feeling lucky the one on this says dream it you hit dream and it just it'll just morph it it'll morph it it'll morph it'll morph it'll morph it it'll just keep making new ones instantaneously it's like working with a designer it's like try again give me something else no not that okay make it blue and it'll just instantaneously recreate something incredible right then right so it's like it's it is just mind blowing what it's creating and then you can see these videos so go down i'll just do like a control f and write the words preview of next feature and it's a picture of a duck yeah it's a picture of my duck and it's like a a duck looks like a guy in photoshop or paint making a duck right so he's he's he's in i think i think his photoshopped is the actual tool but it looks like a microsoft paint duck so it's just like a yellow blob with a orange little duck bill alright so it's a two minute video what he's showing is he created a photoshop plugin using stable diffusion that lets you draw anything crappy and then you just run the plugin and watch get to the end so let go all the way to the end and so he just adds a little blue and so by the end you see this basically like this like fancy looking duck wearing a mono and like a blue like tuxedo shirt and it's like the sophisticated ass duck and if i'm a web designer i'm freaking out right now we we thought ai would like you know it's gonna automate the shitty jobs it's like actually it's coming for your throat artist like dude so i i've been filed this guy i've i was look for his name i found them him his name is blue yeah so l o u y a h and i file him on tiktok and what he does is every once in a while he'll have a post where he he's a producer and he'll be like here's a rap country song that doesn't exist and he makes a song and they sound great and he's he's done this a bunch of times and martin sk in one of his blog posts he said when i was in prison i had a lot of time to think here's a bunch of predictions that i have for the next hundred years as well as timelines so one of his predictions he'll be like we're gonna land on mars by two thousand and fifty or whatever and another prediction is a artificially made song is going to be in the top ten most played songs in the world and billboard top ten inside the next eighteen months like he put a time limit on it and i and i'm on board with that i a hundred percent believe in that i a hundred percent believe in that and i don't get why more people aren't freaking out there are obviously pockets of people who really are really interested in this people see the demo but like it's kind of like we just passed up a purple unicorn while we're driving on a road trip it's oh wow unicorn and we just like okay you guys wanna stop at wendy's and it's like dude wait hold on there was a purple unicorn next to the road like pullover over what are we doing like i think everybody needs to pull over and be like what the hell is happening this is gonna like this is so insane to me and i just feel like these idea like there's gonna be a google like company that's not a search engine it's a generation engine it's a dream engine you're gonna go there you're gonna say what you wish i think somebody's gonna make this for kids i i i was like dude i could make i know i told you before was i'm interested to creating like a pixar light company but it's like why would i create one movie what if i created an app that my daughter could just talk to no no text in but she can't type she just could say a duck surfing you know with an ipad and like you know holding an ipad and like you gotta say any words and this thing would create not only an image but it could create an animation it could create a set of animations it could create a whole story based on the that she can create her own movie just by saying you know a boy who loves soccer but he's sad because he doesn't get enough chocolate and it would create you know a movie based on that it would create a portrait based on that and like she could create art just with her imagination have you heard me as wild have you ever heard this theory that your words shape your thoughts and it's not just like positive thinking it's like literally if that if a word that doesn't describe a particular type of feeling exists in your language then it's hard for you to have that feeling so this particular example isn't exactly proven to be true and a lot of people debate it but there was a group of africans who didn't have like the perfect word for square or like a ninety degree angle and all of their homes were in circles they were like circled and so they didn't they for some reason like the idea of like square and ninety ninety degrees it just wasn't part of their their language and so everything a lot of items in their in their culture were circles or there's like terms for like you know i'm feeling depressed but i'm not suicidal or something in like a different country and like that's like a def a better word sometimes in like depressed and so people are like well you know not just in this mood and they can explain it a little bit better and they feel that way and and it's almost like explaining to a blind person like hey tell me what red looks like it's like i don't know i can't i can't explain what that is when i'm it's too hard i don't have it in my vocabulary with something like this i wonder if there's if it will unlock like a new way of storytelling or a new way of seeing art and it will actually could actually change our our mindset and a lot of different things because like if you if you if you wanna make a movie now i mean you're gonna be influenced by everything that exists and then occasionally occasionally someone's gonna come and do something totally mind break mind changing and that one person is like kinda of once in a generation type of person and they just like a really unique like a steve jobs but when you have something that is collectively aggregating all of the data in the world that has ever existed and then coming up with something interesting do you know what i mean like right i wonder what like the the the the the that's why how i've been thinking about like man well the new stuff that this thing can come out with i can't i literally can't think of you know what i mean totally because what they do is they train it on like just you know they basically go scrape gigabytes and gigabytes and gigabytes of images from the web and they basically there's a big controversy around this some people are like that's unethical those people who put their images up on what they say to know it was gonna be it was gonna be used to train ai that was gonna then put them out of work like that's yeah know that's not so great but like and by way there's like a a name for this some people are trying to do vegan ai you know what that is no but that's awesome vision ai is basically ai that's trained only on non copy written work so like like worked out images that were ex like intentionally said to be royalty free out there for public used out there for use it however you want it's like if it was only trained on that it's sort of like grass fed well right what what what's like a perfect example of this and like is the ultimate villain move is github which is a website that developers post code on it's almost like it's part practicality they post codes so you could share it but they also like like a portfolio almost and what github is doing which is on by microsoft at this point i think they are basically like using ai to scan all the best code of all the code that has ever been uploaded and you can kinda like am i explain this right you can they've using ai to write new code based off of all the users who have input data and the users are like oh cool so you're taking our portfolio you're and you're gonna use it to put us out of work that that's nice right yeah and and i think matt freeman who is the i think he was this i feel like he was ceo of github for a period of time i don't know if he still is but he just tweeted out he goes the ten billion dollar ai first product idea hiding and plain sight is github c copilot which is the name of the thing you said right like the ai s assistant that helps you write your code for customer support you can fine tune it is basically you have this archive of all of your thousands and thousands of company like tickets that were like resolved like resolved customer support issues and your support rep who's just like you know random a person sitting in you know i don't maybe the philippines or something like that gets dramatically more productive and your customers get better and like training becomes easier because you have any company with twenty percent twenty or more support reps he says you know would buy this and and and and so you know like that guy basically like i think c copilot is like a billion dollar a year add on to a billion well more more than a billion dollar you're add on now for github because so many software developers opt into it because it makes them more productive so it's like how many other areas is that gonna happen to when we discussed this i'm like this is a this is the type of like macro movement that it's like dude just quit what you're doing and just join get in somehow you know almost yeah i don't really like crypto but almost like crypto in like o nine or eleven or something like that oh it's like i don't know man it's kinda hard to miss if you're just kinda in the in in the in the ballpark hundred percent hundred percent that's how i feel about this like that's wait we drove by a purple unicorn and pull over the car pull over the car in your career and basically go dive in and figure out what this is and if people are already driven in tell me because i'm trying to dive in i wanna learn as much as i can about this over the next six months because i find it fascinating i'm gonna just i can't show this graph but i'm just gonna tell you a graph real quick alright there is a company i wonder if i could say the name i'm gonna say the name maybe we have to bleep this out later so there's a company called have you heard of this yeah i don't exactly know what they do but they're basically like an i think they're just like an ai copy solution that's what i website just you know if it's they're base are they based out of austin i think i'm met the founder actually so sounds cute right oh you know ai helps you copyright copyright this little niche thing that you and i are in we help people with copyright too we both have like a copywriting course or product like that here's their annual recurring revenue january of twenty twenty one january two point five million that that's their annual recurring they this is their arr rate that they were at so january a january twenty hundred one two and a half million that's pretty good like congrats fast forward to april five point seven million oh wow you guys doubled in four months like really great progress of super impressed like you guys just you guys are probably on to something this could be like a hundred million dollar company or something like that fast forward july twenty million dollar run rate oh wow what's going on it's one year you've gone from two point five to twenty million fast word october forty million dollar it's like what is happening in one year this went from two and a half million to forty million dollar run rate that is absolute insanity to me i've i've never seen an arr chart like that now i don't know how did you get a super legit someone sharing with me so you know i don't know how legit this is but i don't think it's fake you know it's crazy to be so but it's just like my kind of a mind blowing level of traction goddamn him yeah i'm on board with this stuff is pretty cool that's insane i can't believe how big that is wow it seems too gonna be true alright anything else that we wanted to cover no that's the pod