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- [00:00]
Scarlett
So like 100% of investors think that protection is important. Only about 70% of advisors are like talking to their clients about that.
- [00:07]
Beth Cohet
Where do you think the disconnect is happening?
- [00:09]
Scarlett
There's this huge differences that exist in terms of what advisors think they're talking about their clients, what clients are actually hearing.
- [00:15]
Anthony Hughes
The thing about AI for business, it may not automatically fit the way your business works. At IBM we've seen this firsthand. But by embedding AI across hr, it's and procurement processes, we've reduced costs by millions, slashed repetitive tasks and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.
- [00:46]
George Ferguson
At Venture Global, we think about what
- [00:48]
Scarlett
can be done, not what's usually done through innovation.
- [00:53]
George Ferguson
Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.
- [01:18]
Podcast Host
Bloomberg Audio Studios Podcasts Radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [01:39]
Podcast Host 2
We have SK Hynix ADRs opening for trade. They opened 14% above the offer price. They opened at $170. The offering was at $149. The company raised 26 and a half billion dollars in selling American depository receipts on the NASDAQ. Let's bring in Anthony Hughes. He is our senior equity capital markets reporter here at Bloomberg News. And you've been monitoring this. This was a very oversubscribed offering. There was a lot of demand for it. And this opening indicates the demand has not stopped.
- [02:13]
Anthony Hughes
Yes, for the size of this offering, this gain that you can see here, you know, sort of around 15% is what you'd expect for perhaps a deal like this where it's pretty large. You wouldn't expect maybe to go up, you know, like 50, 100% or something like that. But you know, really what this confirms is that SK Hynix has been able to achieve a premium to the price at which the stock trades in Korea. And that was part of this exercise here. This was a offering which was designed to fund the capital expenditure of the company, but it was also trying to do that In a way which was most efficient for the company and enabling the company to get a cost of capital that was more the best, the lowest they could and basically as good as Micron's getting in the US So obviously it's efficient way for the company to raise money in the US this is the way they did it.
- [03:10]
Scarlett
What does the company said about their need for additional capital going forward? Did they put out a message that we may come back for equity, we may access the US debt markets? What did they say anything about that?
- [03:21]
Anthony Hughes
Yeah, I think if you see the interview with the chairman, he did say there was a possibility they could sell more ADRs and obviously they can raise debt in the future as well. So I think the company is going to have significant capital expenditure needs. And this is the sort of interesting thing about the market at the moment where there's a lot of interesting companies that do have heavy capital expansion needs. And I think in the past we'd probably think they were not the best companies to invest in. But these things are different these days. But obviously they're generating a huge amount of huge return on the assets they have at the moment. But I think the really interesting thing from that interview I thought with the chairman was that he has to balance off really maximizing profit for the shareholders. But he's also got to supplies customers with, with the product and you know, obviously he left, he has to expand the production of the memory chips and, and doing this is something that, you know, could subtract a little bit away from shareholder returns over time. But that's a balancing act that, you know, management has to, has to achieve. And that's really interesting challenge for the company looking forward here.
- [04:21]
Podcast Host 2
So the, the market where SK Hynix has its primary listing, Seoul, is the world's best performing stock market. Right. I mean it's done incredibly well. And this is even after it basically had this, this moment of whiplash the last couple of weeks. You know, it's been very, very volatile. Just this week alone I'm looking at it, the Cosby, the benchmark index There closed down 5% last night. It rose 3%. So it's kind of all over the place. Is there a sense that this was kind of the. Not, I don't want to say the top, but you know, it was kind of a dicey time for SK Hynix to go public in the US given that there's so much volatility in its home market.
- [05:00]
Anthony Hughes
Yeah, well, I think when the stock's up 6 or 700%, in the last year, finding the right price here was always going to be a little bit challenging. And I think although the offering did price at a premium to the translated value of the stock in Korea, it did come back 25%, 30% ahead of this offering in the past few weeks. And that was something that I think the investors in the offering, the US investors that came in for the adrs were pleased about. Obviously it'd be much better to have bought the stock a year ago when it was before it had gone up 600%. But the investment opportunity was laid out to them here and the stock did come back ahead of the offering and then it priced at a premium. Now it's trading up again. So the company's trying to get a multiple that's closer to Micron, which has been an outstanding stock in the us. But whenever you see stock prices go up in a straight line like they have, or at least go up very, very sharply over a short period of time, there's always a chance for retracement. But to your point, the Korean market has been hugely volatile. It's been very, it's been very strong, yes, one of the strongest market in the world, but it's highly, it's very volatile. So I think the interesting thing for investors is whether this stock is going to be volatile now that it's trading in the us. And so is some of that volatility in Korea going to get imported into the us?
- [06:17]
Podcast Host 2
Very well said. Okay, you keep bringing up Micron and that's because that's the US's biggest memory chip maker. But SK Hynix has a rival at home and that's Samsung Electronics. Does Samsung Electronics trade in any way in the us? And if not, would it consider listing in the us? Because SK Hynix has.
- [06:34]
Anthony Hughes
Yeah, well, I think people are expecting other companies to look at ADR programs. I mean Kioxa, Kioxia in of Japan, right?
- [06:42]
Podcast Host 2
Kyocera, right?
- [06:43]
Anthony Hughes
Yeah, yeah, I've got the name right there. But you know, I think ADR programs are not necessarily simple things for companies to roll out. And I think a lot of Asian companies have probably shied away from recent years. Certainly Chinese companies have not really been encouraged to in either direction to do ADR programs. So you know, this might be a little bit of a one off and really reflective of these amazing conditions in the, in the memory chip market. But yeah, it's, this has been a pretty orderly outcome so far.
- [07:12]
Scarlett
Real quick, do we expect stock that traded a premium in the US versus Korea from a Valuation perspective.
- [07:18]
Anthony Hughes
Yeah. So I guess to Scarlett's point there, even though Samsung is a rival, really the direct comp here was Micron. And Micron does trade at a premium to SK Hynix based on forward earnings. I mean obviously you can value companies in different ways and part of the exercise here was to close that gap at least as far as the stock trades in the US and obviously when the company goes to look to raise further capital, it'll raise it in the cheapest way possible. And if stock is trading at a at a premium in the US versus Korea, there's obviously going to be an incentive for them to raise the money in the US and obviously the other thing about the US is there's a lot of money in the US as
- [07:54]
Scarlett
well to play that arbitrage.
- [07:56]
Anthony Hughes
Yeah, but that was very much expected that there would be a premium here and that's part of the exercise that they've been able to do that. But obviously there is a Korean discount that people talk about that reflects the fact that there's a lot of governance concerns about the way Korean business. Korea does business a little bit differently to America. I think the Korean companies are less focused on capital returns and dividends and also just, you know, Americans are a bit more share price focused from all accounts.
- [08:25]
Podcast Host 2
Stay with us. More from Bloomberg Intelligence coming up after this.
- [08:30]
Scarlett
Over $100 trillion estimated to be transferred to generations in the next 25 years. It's both a risk and an opportunity because we see that only about 18 19% of high net worth investors plan on sticking with their advisor post transfer.
- [08:44]
Beth Cohet
This has to be a tough statistic
- [08:46]
Bethany Frankel
for some to hear.
- [08:47]
Beth Cohet
People who work so trying to grow their net assets. They want to protect that life work and they want to make sure that it is able to transfer in a seamless way.
- [09:02]
Anthony Hughes
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- [09:31]
Scarlett
Support for this show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve of the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors, LLC. SEC registered advisor. Complete disclosures available@public.com disclosures.
- [10:42]
Podcast Host
You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [10:56]
Scarlett
All right, let's switch gears to the aerospace business, the airlines business. We do that with George Ferguson and he's a senior aerospace analyst at Bloomberg Intelligence. And George, the only thing between me and the beach is this discussion with you, so I want to get through this. George, talk to us about Delta. Earnings came out, I thought they were pretty good here. It seems like demand's holding up for these airlines.
- [11:21]
George Ferguson
Yeah, I mean I think that you know, Delta, United and to a lesser extent American are going to probably the best part of the story this quarter and I think Delta showed some resilience in that in the revenue lines.
- [11:36]
Kevin Near
Right.
- [11:36]
George Ferguson
And I think you have to remember this is a pretty diversified from a revenue standpoint company, they have maintenance business that brought in some great double digit gains. They've got, they had cargo, they had loyalty that all sort of brought in gains as well as premium and then and basic lagged a little bit although they they indicated that, you know, they've been cutting down a number of basic seats. But I think generally the story was pretty good on the revenue front. They grew less than United and American so I think that means they could support some of those higher fares. They were like at 1% seat count growth, we're going to see United I think come in closer to six. We're going to see American around 3ish. So I think this might be the best part again of the revenue story for US Airlines as we get into this earnings season and one of the challenges I think too, in growing a little slower on the capacity front is that some of their costs ballooned a little bit. But look, again, I think they made some good ground. They haven't totally compensated for higher fuel prices, but they made some, some good ground. I think it was a, it was, it was a pretty decent earnings, you know, earnings numbers.
- [12:49]
Scarlett
Hey George, talk to us about just maybe the trend in the industry to maybe taking out some economy seats, putting in more business or first class seats. How is a cabin changing within the industry these days?
- [13:02]
George Ferguson
Yeah, I think you just, you know, on the big full service guys, you're seeing a lot of, I don't know, call it upgrading, improving, right? And remember, like that premium seat, you know, that can stretch anything from premium economy to more business seats. And you know, I think they're finding again, you know, they're sort of, they're focusing on the well heeled consumer. You're a retiree, you know, and you're your 401k accounts, I guess it's not a 401k anymore. Your investment accounts are rocking and rolling. You don't want to fly overseas, you don't want to fly to the west coast in something that's as cramped as some of that basic economy in the back of the airplane. So those carriers are sort of pushing that upgraded seat, trying to get more money from it. And again, I think, you know, Delta has shown some success on that front and I would expect you're going to see the same out of United and American, but to a lesser extent.
- [13:58]
Scarlett
But what happens to the, the lower end consumer? Where does that consumer go? Do I have to fly? I mean, aren't some of these airlines going out of business, these discount airlines?
- [14:09]
George Ferguson
So we saw Spirit, you know, we saw Spirit leave the business. I think that helped. Look, I think still at the bottom end of the, of the scale, right, that basic economy traveler one, they're under a little more pressure economically. I think inflation's hurting them a little harder. When you raise the price of gas, it hits them in the pocketbook a little further too. Right. It cost them more to commute to work of their total income. And so I think that means demand is probably a little bit softer in that basic economy world than it is in the premium world. And so I think that kind of took away some of the gains we might have seen as Spirit left. And again, I think you've got to bear in mind that Delta, United and American are going for that basic economy travel, right? There's still a basic economy section in the back of those airplanes that, you know, provided they can sell that seat at a price that's higher than their incremental cost to deliver it. They're going to do it to that basic economy traveler, fill out those load factors and create, you know, efficiencies, which improves profitability. And so that's the challenge in this business is United, Delta, especially United, they're growing again, 6% seats. There's probably going to be about that much in basic economy growth. They do that for long enough and they kind of make up pretty quickly for Spirit Airlines leaving the business. So there's still a lot of competition, I think, in that basic economy. We'll see as earnings season goes on.
- [15:42]
Scarlett
All right, folks. George, in addition to covering the airlines, also covers aerospace companies. Think Boeing. And all I know is every summer right around this time, he gets to go to these lavish trips to Europe. One year it's London, the next year it's Paris. They alternate and they're these air shows. I have no idea what happens at these air shows, but George tells us he must go. So we send them. George, where are you going this summer? I see the week of July 20th might be penciled in.
- [16:10]
George Ferguson
It is so July 20th, Farnborough Air show in, you know, the burbs around London. And so, you know, we go there to sort of keep a pulse on demand for airplanes. Usually there's a fair amount of orders placed at the show for airplanes, but you know, by airlines around the world this year, maybe a little bit muted, you know, sort of the on again, off again of the sort of Iran fight has fuel prices sort of bouncing all over the place. So we'll see how much airlines want to get in the back of very large cues for airplanes.
- [16:44]
Scarlett
Don't work too hard over there. I heard the rose flows.
- [16:47]
Podcast Host 2
Stay with us. More from Bloomberg Intelligence coming up after this.
- [16:52]
Scarlett
Support for the show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English, like if the Vix hits 25, buy a put option on the S&P 500. Or if my cash balance goes above $20,000, move the excess into my direct index. You approve of the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors, LLC. SEC registered advisor complete disclosures available@public.com disclosures
- [18:02]
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- [19:35]
Podcast Host
You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [19:49]
Scarlett
Great Bloomberg opinion column out here today. Metta ushers in the era of the K shaped company. A new class divide is emerging in big tech between those at the top of the artificial intelligence hierarchy and everyone else, with the former receiving high salaries and resources and the latter being viewed as disposable. Beth Cohet joins us here. She is a Bloomberg Opinion columnist, author of this piece. Beth, what's going on out there with some of these big tech companies? It seems like we are. If you're in AI, they love you.
- [20:20]
Beth Cohet
Yeah, I mean, it's really interesting because I think tech has long thought of itself as this egalitarian utopia and that, you know, that's a much more complicated story. And we're seeing that play out again here where I really think there is an AI hierarchy. There's the elite and then there's everybody else. And even if you're doing things with AI, even if you're using AI tools, unless you are at the very top of this hierarchy, you are at risk.
- [20:44]
Podcast Host 2
Unless, unless you're the kind of person who is recruited to work at say, a Metta and in charge of developing the AI capabilities. Everyone else just feels like they're, you know, hired and disposable. Increasingly what is happening at Meta that is really exacerbating this divide.
- [21:01]
Beth Cohet
So, so we really are seeing this here. So there's, you know, executives have thrown massive payback, like nine figure salaries at developers, researchers, engineers who are really at the top of this field. Everybody else is, has faced the prospect of mass layoffs. I mean, we're talking, you know, 10% of the company multiple, multiple times over. Right. We've, we've seen multiple rounds of mass layoffs. Workers have been surveyed in order to basically train their AI replacements. They've been drafted onto teams that are described as sort of soulless gulags. So it's, you know, this, this company that once was really one of the most coveted employers in Silicon Valley for a lot of people has now become, you know, it's, people are sort of hoping to get laid off. They want out.
- [21:51]
Scarlett
What are the companies saying, if anything these days? How are they responding?
- [21:55]
Beth Cohet
Well, what's really interesting here is Meta has walked some of this back. They've acknowledged recently that the way some of their various initiatives were rolled out was atrocious. They've said the environment is brutal. And I don't think this is because all of a sudden they've discovered empathy. I think this is because it wasn't working. Right. Like they are not winning the AI race. And I mean, that's not a big surprise that if you treat employees this way, they're not going to perform for you. So I think, I think they've kind of realized that a little bit they know what the problem is.
- [22:27]
Podcast Host 2
They know what the problem is. How are they solving it? Because there is a talent war. You just talked about these nine figure salaries for folks who are at the top of the game, but at some point you also need everyone else to kind of continue to keep the ship moving in the right direction.
- [22:41]
Beth Cohet
Yeah. So it's interesting. They've said things like we're not going to have any more mass layoffs this year. Better micro kitchens, you know, smaller teams they were having in some cases where one manager would have 50 reports. So more attentive leadership. They were, they stopped their surveillance program because there actually was a data leak attached to that.
- [23:03]
Podcast Host 2
That's why they stopped it.
- [23:04]
Beth Cohet
That's why they stopped it. That's why they stopped it. And so we're kind of seeing that they're saying, okay, we're going to try to move back to how things were a little bit. But I don't think it's that simple. Once you break the trust of employees, it's really not that easy to gain it back.
- [23:18]
Scarlett
So are the established Silicon Valley companies like the metas of the world, the Google, are they seeing AI startups in the Valley take poaching talent away? Is that, is that at risk as well?
- [23:29]
Beth Cohet
Yeah. Well, what's, what's interesting here is that the way Metta actually got some of its top talent was by acquiring, by investing in and then bringing on some of the. Yeah, it was a big investment. They invested and then brought in some of the talent. So this is, you know, this is, these are the employees that they are really focused on and then they're sort of the bottom of the pyramid. And you know, I think just like we see in the K shaped economy, these employees, they are fearful. They, they really, they resent what's happening. And you know, that is also happening here at in Corporate America.
- [24:06]
Podcast Host 2
Stay with us. More from Bloomberg Intelligence coming up after this.
- [24:12]
Scarlett
Support for this show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public Investing Brokerage services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors LLC. SEC registered advisor complete disclosures available@public.com disclosures
- [25:22]
Sponsor Voice
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- [26:22]
Bethany Frankel
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- [27:10]
Podcast Host
You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app Listen on demand wherever you get your podcasts or watch us live on YouTube.
- [27:24]
Scarlett
I tell you, one of the many, many, many industries that were hurt by the pandemic was the theater business. Going out to movies. A lot of folks said that's gonna be the final nail in the coffin of the theatrical window. It's been tough, but they're getting inching away back there. Kevin near follows this industry. He's a senior Equity Research Analyst for Bloomberg Intelligence. In Studio In Studio It's a Friday in the summer. The BI management team has sconced at their various locations. We appreciate Kevin coming in here. Talk to us about the theatrical business here. Where are we kind of historical levels pre. Pre pandemic to now? What's going on there?
- [28:01]
Kevin Near
Yeah, Paul, you set it up nicely. I mean, as you said, it's been a really tough road back. From the pandemic, we've had just years of stunted supply. Theaters have been struggling really in survival mode for a long time. This year we're seeing a total inflection in demand. And really that's coming from the supply side. We're seeing more movies. And really just as importantly, these movies are staying in theaters for longer. That's retraining the consumer that you don't. You don't have to go and see these movies at home, go to the theater, go out on a midweek, see the movie. And. And we're seeing. That's really, really driving the box office to a post pandemic record.
- [28:33]
Podcast Host 2
Okay, so you set it up for me to ask the obvious next question. Which movies are convincing people to pay up and go to the movie theater?
- [28:39]
Kevin Near
Yeah, I mean, Scarlet is a great question because I think it's. It's the totality, right? It's a diverse slate. We're not seeing nearly as much emphasis on a single blockbuster carrying an entire month or the entire summer like we saw with, with Top Gun Maverick just a few years ago. This year there's just more content, right? So there's, there's horror. There's something for different audiences, family audiences. We're seeing more IP back in theaters. So there's something for everyone, really.
- [29:02]
Scarlett
How about the demos here? Are you said training an audience to go back into the theaters, Is that what are we seeing? Are younger people going to theaters differently as much less than older folks? How's that working?
- [29:15]
Kevin Near
You picked up on my next point. Younger audiences have been some of the strongest to come back to the theaters. Really. Honestly, surprisingly, we think of these younger people, Gen Z more the digital age, you know, they're addicted to their phones. That hasn't been the case. And a big reason is because of the pandemic. You know, they lost out a lot of the communal experience, whether it was prom, whether it was all these things that a lot of us have taken for granted. Now that we're back, they really value in person experiences. And it's not just theaters, right? It's concerts, it's sporting events. We're seeing these tailwinds in a lot of different verticals.
- [29:45]
Podcast Host 2
And going to the movie theater is a lot cheaper. Than going to a concert. So there's that to keep in mind as well. What are the theaters doing to make sure that once customers go in there, they have a good experience? Because, you know, a lot of times you go in there and the floor sticky, there's popcorn on the seats. Like it's not a great experience.
- [30:01]
Kevin Near
Yeah, yeah, it's true. And you know, a lot of those underperforming theaters have gone away. Right. So we're thinking about more high quality. We want to improve the consumer experience because when people are in there, once foot traffic rises with a high quality slate, naturally concession spending goes up. Food and beverage, that's where profit comes for the movie theaters. So movie theaters are investing more in premium options. I think, you know, popcorn and soda are still the biggest profit drivers. But think like, you know, chicken fingers, pizzas, even alcohol. A lot of theaters are getting alcohol licenses now, and that's been a really big success story as well.
- [30:33]
Scarlett
One of the key issues that you mentioned earlier is the theatrical window. What are the. Are the studios making a conscious decision to keep movies in theaters longer?
- [30:43]
Kevin Near
They are, they are. And this is a direct reaction to the demand. Right. So the demand has risen. Now studios are investing more in the content. We've heard of promises, we've heard of vocal commitments. The proof is actually showing up in the data. And we've seen a material materially higher dollar recovery and midweek gross box office. There could be some things going on there. Maybe some people are putting less emphasis on those expensive opening weekends and just going to the discounted tickets on Tuesdays or Wednesdays. But really, you know, the flip side of that is just there's not as much emphasis to see it on that opening weekend where there can be capacity constraints, especially during the summer. So I don't need to see it on a Friday. I'll go see it on a Wednesday.
- [31:21]
Podcast Host 2
Last movie that you went to the theater for.
- [31:23]
Scarlett
Oh, God, pass. I can't remember.
- [31:26]
Podcast Host 2
Devil Wears Prada.
- [31:27]
Scarlett
What's that?
- [31:27]
Podcast Host 2
Devil Wears Prada.
- [31:28]
Scarlett
Devil Wears Prada, Yeah.
- [31:29]
Podcast Host 2
I saw Toy Story 5.
- [31:30]
Kevin Near
Okay, fantastic. What did you see most recently? I saw Obsession, which was just sort of.
- [31:35]
Podcast Host 2
Oh, yes. So that's the horror movie that you're talking about, right? Something for everyone.
- [31:38]
Kevin Near
John Tucker, the last one my son dragged me to see Dune or Dune.
- [31:43]
Podcast Host 2
That wasn't recent.
- [31:44]
Kevin Near
Well, that's the last time I went. There's way too much sand in that movie, too.
- [31:48]
Scarlett
Nixon was president. So what's the slate coming out of Hollywood over the next couple of years?
- [31:53]
Kevin Near
Yeah, absolutely. So we have much, much better visibility not only into the second half, but also into 2027. Right. And that's just something that's been a big change from the prior years. That's giving us a lot of confidence in why we see kind of a structural reduction in downside risk. What, where the, where the visibility goes away is 2028. Right. And this is where we're just not sure what's going to happen, especially if the studios consolidate, which it very much seems like the winds are pointing in that direction. We have Paramount set to take over Warner Brothers, Discovery, Comcast. NBC Universal is now kind of a question mark. Two extremely important, healthy studios for this ecosystem. So there is historical precedent. When Disney bought 20th Century Fox, we saw that their combined output really, really dwindled over the last seven years. That's the same concern with, with, you know, these other studios combining. I think a naturally defensive move is if the studios, or, excuse me, if the cinema is combined to get better in negotiating terms with rental costs. But we'll just have to see what happens.
- [32:48]
Podcast Host
This is the Bloomberg Intelligence podcast, available on Apple, Spotify and anywhere else you get. Your podcasts listen live each weekday 10am to noon Eastern on bloomberg. Com, the iHeartRadio app, TuneIn, and the Bloomberg Business app. You can also watch us live Every weekday on YouTube and always on the Bloomberg Terminal.