[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_137":-5,"_138":-5,"_139":140,"_141":142,"_143":144},"routes/clips.$id.$slug",{"_9":10,"_11":12},"clip",{"_13":14,"_15":16,"_17":-5,"_18":19,"_20":-5,"_21":22,"_23":24,"_25":26,"_27":28,"_29":30,"_31":32,"_33":34,"_35":36,"_37":38,"_39":40,"_41":-5,"_42":-5,"_43":-5,"_44":45,"_46":-5,"_47":48,"_49":50,"_51":-5},"canonicalUrl","https://howleaderslead.com/clips/2350/carefully-balance-new-and-legacy-business","id",2350,"title","Carefully balance new and legacy business","subtitle","transcript","WEBVTT\n\n1\n00:00:00.000 --> 00:00:04.120\non Netflix, but all of it, the internet writ large,\n\n2\n00:00:04.120 --> 00:00:06.040\nis causing tremendous disruption.\n\n3\n00:00:06.040 --> 00:00:10.320\nAnd we have people sometimes almost feeling sorry\n\n4\n00:00:10.320 --> 00:00:11.680\nfor themselves saying, you know, boy,\n\n5\n00:00:11.680 --> 00:00:13.360\nthe internet is really rough.\n\n6\n00:00:13.360 --> 00:00:16.640\nAnd what I say to people is I can't think of an industry\n\n7\n00:00:16.640 --> 00:00:19.000\nthat isn't being disrupted right now.\n\n8\n00:00:19.000 --> 00:00:23.080\nYou know, who would have, you look at retailers\n\n9\n00:00:23.080 --> 00:00:26.320\nor you look at even car companies talking about electric\n\n10\n00:00:26.320 --> 00:00:29.560\nand autonomous vehicles, every industry is being\n\n11\n00:00:29.560 --> 00:00:31.400\ndisrupted at some level by the internet\n\n12\n00:00:31.400 --> 00:00:33.560\nand ours is no exception.\n\n13\n00:00:33.560 --> 00:00:37.680\nThe good news is our traditional ecosystem is still very healthy.\n\n14\n00:00:37.680 --> 00:00:39.200\nStill throws off a lot of cash.\n\n15\n00:00:39.200 --> 00:00:40.680\nIt's not growing.\n\n16\n00:00:40.680 --> 00:00:43.200\nAnd it's at the point now where it's going to start to decline.\n\n17\n00:00:43.200 --> 00:00:45.760\nBut I bet as it'll decline quite gradually.\n\n18\n00:00:45.760 --> 00:00:47.600\nIf you look at the history of the media business\n\n19\n00:00:47.600 --> 00:00:51.920\nover the last 70 or so years, there's a new technology\n\n20\n00:00:51.920 --> 00:00:53.400\nevery 10 or 20 years.\n\n21\n00:00:53.400 --> 00:00:55.200\nAnd in the beginning, you had movie theaters\n\n22\n00:00:55.200 --> 00:00:56.840\nand then along came television.\n\n23\n00:00:56.840 --> 00:00:58.560\nAnd everybody thought television was going\n\n24\n00:00:58.560 --> 00:01:01.960\nto put radio out of business or movie theaters out of business.\n\n25\n00:01:01.960 --> 00:01:03.680\nAnd there's still radio companies\n\n26\n00:01:03.680 --> 00:01:07.400\nand there's still a big theatrical movie business.\n\n27\n00:01:07.400 --> 00:01:10.600\nAnd so these new waves of technology\n\n28\n00:01:10.600 --> 00:01:13.560\ntend not to put the previous technology out of business.\n\n29\n00:01:13.560 --> 00:01:15.840\nCable channels didn't put broadcast out of business.\n\n30\n00:01:15.840 --> 00:01:19.360\nBroadcast television is actually making more money today\n\n31\n00:01:19.360 --> 00:01:22.440\nthan it did 10 years ago, 20 years ago, or 50 years ago.\n\n32\n00:01:22.440 --> 00:01:23.000\nIt's amazing.\n\n33\n00:01:23.000 --> 00:01:25.000\nAnd people would have guessed 20 years ago\n\n34\n00:01:25.000 --> 00:01:28.880\nthat ABC, NBC, CBS, and Fox would be out of business by now.\n\n35\n00:01:28.880 --> 00:01:33.840\nSo I think my job or the job of Jeff Schill, my successor,\n\n36\n00:01:33.840 --> 00:01:36.200\nis you want to manage your existing businesses as well\n\n37\n00:01:36.200 --> 00:01:39.720\nas you can while planning for the new businesses.\n\n38\n00:01:39.720 --> 00:01:42.280\nAnd therein lies the art because the new business\n\n39\n00:01:42.280 --> 00:01:46.800\nby definition is going to compete with the legacy business.\n\n40\n00:01:46.800 --> 00:01:51.000\nAnd if you get a great show, do you put that show on NBC?\n\n41\n00:01:51.000 --> 00:01:52.200\nDo you put it on a cable channel?\n\n42\n00:01:52.200 --> 00:01:55.000\nOr do you put it on Peacock, the streaming service?\n\n43\n00:01:55.000 --> 00:01:56.800\nAnd if you put it on Peacock, the streaming service,\n\n44\n00:01:56.800 --> 00:01:58.560\nhow do you manage the pricing?\n\n45\n00:01:58.560 --> 00:02:00.400\nHow do you get that show there?\n\n46\n00:02:00.400 --> 00:02:03.600\nHow do you get a company to root for Peacock\n\n47\n00:02:03.600 --> 00:02:06.640\nso that people aren't constantly against it?\n\n48\n00:02:06.640 --> 00:02:09.920\nHow do you use the existing ad time in your television channels\n\n49\n00:02:09.920 --> 00:02:10.880\nto support Peacock?\n\n50\n00:02:10.880 --> 00:02:13.480\nAnd that's what we're going through right now.\n","pretty_transcript","start_time",2383139,"end_time",2515379,"keywords","internet, disruption, media business, ABC, NBC, CBS, Fox, legacy business,","slug","carefully-balance-new-and-legacy-business","origin","cms","mux_playback_id","twMifxPCyW1i01ssYUL7BvWFFhNuqk1ICdkKLrsN00asw","mux_asset_id","YCAnr02ID02r3Ze9mFuS7qYrwSFBQh6CXC9Pwq022XR47o","leader_id",122,"episode_id",270,"updated_at","2025-02-26T19:51:55.000000Z","meta_title","meta_description","og_image_media_id","web_url","https://www.howleaderslead.com/clips/2350/carefully-balance-new-and-legacy-business","og_image_url","leader",{"_13":36,"_101":102,"_103":104,"_105":106,"_25":107,"_108":109,"_62":110,"_59":110,"_111":112,"_69":113,"_39":114,"_115":-5,"_41":-5,"_42":-5,"_43":-5,"_116":117,"_89":118,"_44":119,"_120":121,"_122":123,"_46":-5,"_124":125,"_126":127,"_93":128,"_51":-5},"episode",{"_13":38,"_15":52,"_27":53,"_17":54,"_55":56,"_18":57,"_20":58,"_59":60,"_61":-5,"_62":60,"_63":-5,"_64":65,"_66":67,"_68":-5,"_69":-5,"_70":71,"_72":73,"_74":-5,"_35":36,"_39":75,"_41":-5,"_42":-5,"_43":-5,"_76":77,"_78":79,"_80":81,"_82":83,"_84":-5,"_85":-5,"_86":87,"_88":-5,"_89":-5,"_46":-5,"_90":91,"_92":-5,"_93":-5,"_51":-5},"og_image_media","Draw Out Your Team’s Wisdom","draw-out-your-teams-wisdom","Learn how Steve gets the most out of his teams by drawing out their ideas and building a strong, idea-driven culture. Plus, see what you should be looking for right now if you want to land the best up-and-coming talent.","summary","

Today’s guest is Steve Burke, Chairman of NBCUniversal.

Since taking over NBCUniversal in 2011, he's almost tripled the profits from around $3 billion to over $8 billion and is leading the fastest growing media company in the world.

Before that, Steve was the #2 guy at Comcast alongside Brian Roberts as they acquired NBCUniversal. He’s also led hugely successful efforts at Disney and ABC.

He has accomplished SO much. But in every role, Steve just knows how to get the most out of the people around him. It’s how he was able to lead the turnaround at DisneyWorld Paris and how the whole idea of Disney Stores even came to exist!

Steve shows us that sometimes, truly breakthrough ideas are already there within your team – and it’s your job as a leader to draw them out.

You’ll also learn:

What to look for in great talent, especially if you work in a rapidly changing field
The #1 mentality you need to establish in your team members
Two things you absolutely must do if you need to make a bold decision
How to balance a legacy product with an emerging one

Take your learning further. Get proven leadership advice from these (free!) resources:

The How Leaders Lead App: A vast library of 90-second leadership lessons to stay sharp on the go

Daily Insight Emails: One small (but powerful!) leadership principle to focus on each day

Whichever you choose, you can be sure you’ll get the trusted leadership advice you need to advance your career, develop your team, and grow your business.

","WEBVTT\n\n1\n00:00:00.000 --> 00:00:07.810\nWelcome to How Leaders Lead, where every week you get to listen in while I\n\n2\n00:00:07.810 --> 00:00:08.520\ninterview some\n\n3\n00:00:08.520 --> 00:00:10.600\nof the very best leaders in the world.\n\n4\n00:00:10.600 --> 00:00:14.060\nI break down the key learning so that by the end of the episode, you'll have\n\n5\n00:00:14.060 --> 00:00:14.640\nsomething\n\n6\n00:00:14.640 --> 00:00:18.360\nsimple you can apply as you develop into a better leader.\n\n7\n00:00:18.360 --> 00:00:20.440\nThat's what this podcast is all about.\n\n8\n00:00:20.440 --> 00:00:25.240\nToday's guest is Steve Burke, Chairman of NBCUniversal.\n\n9\n00:00:25.240 --> 00:00:31.200\nYou know, since taking over NBCUniversal in 2011, he almost tripled the profits\n\n10\n00:00:31.200 --> 00:00:31.200\n.\n\n11\n00:00:31.200 --> 00:00:36.880\nI believe something from like $3 billion to over $8 billion and is leading the\n\n12\n00:00:36.880 --> 00:00:37.880\nfastest-growing\n\n13\n00:00:37.880 --> 00:00:40.560\nmedia company in the world.\n\n14\n00:00:40.560 --> 00:00:44.480\nBefore that, Steve was the number two guy at Comcast, working alongside the CEO\n\n15\n00:00:44.480 --> 00:00:45.000\n, Brian\n\n16\n00:00:45.000 --> 00:00:48.520\nRoberts, as they acquired NBCUniversal.\n\n17\n00:00:48.520 --> 00:00:53.840\nAnd before that, he led hugely successful efforts at Disney and ABC.\n\n18\n00:00:53.840 --> 00:00:58.120\nHe has accomplished so much, but you know in every role, Steve just knows how\n\n19\n00:00:58.120 --> 00:00:58.600\nto get the\n\n20\n00:00:58.600 --> 00:01:00.280\nmost out of the people around him.\n\n21\n00:01:00.280 --> 00:01:04.300\nIt's how he was able to lead the turnaround at Disney World Paris and how the\n\n22\n00:01:04.300 --> 00:01:05.120\nwhole idea\n\n23\n00:01:05.120 --> 00:01:08.000\nof Disney stores even came to exist.\n\n24\n00:01:08.000 --> 00:01:12.160\nWhen you sit and talk with Steve, you realize a lot of times the truly\n\n25\n00:01:12.160 --> 00:01:13.480\nbreakthrough ideas\n\n26\n00:01:13.480 --> 00:01:18.730\nare already there within your team, and it's your job as a leader to draw them\n\n27\n00:01:18.730 --> 00:01:19.360\nout.\n\n28\n00:01:19.360 --> 00:01:23.920\nSteve is a master at doing just that, and I know you're going to learn a ton\n\n29\n00:01:23.920 --> 00:01:24.760\nfrom him.\n\n30\n00:01:24.760 --> 00:01:31.700\nSo here's my conversation with my good friend, and soon to be yours, Steve\n\n31\n00:01:31.700 --> 00:01:32.640\nBurke.\n\n32\n00:01:32.640 --> 00:01:39.480\nSteve, thanks so much for taking the time to have this conversation.\n\n33\n00:01:39.480 --> 00:01:40.800\nWell, thank you, David.\n\n34\n00:01:40.800 --> 00:01:44.480\nWe're going to get to your business career, but what's the most fun you have\n\n35\n00:01:44.480 --> 00:01:44.960\nright now?\n\n36\n00:01:44.960 --> 00:01:47.360\nWhat's going on outside of your work that you have and the most fun with?\n\n37\n00:01:47.360 --> 00:01:52.250\nWell, I'm planning what happens next, and I announced that I was leaving in mid\n\n38\n00:01:52.250 --> 00:01:53.040\n-December.\n\n39\n00:01:53.040 --> 00:01:56.610\nI have a great successor, a guy named Jeff Shell, who I've worked with for 15\n\n40\n00:01:56.610 --> 00:01:57.120\nyears,\n\n41\n00:01:57.120 --> 00:02:00.700\nand he's moved around our company, so he's managed a lot of the different\n\n42\n00:02:00.700 --> 00:02:01.280\naspects of\n\n43\n00:02:01.280 --> 00:02:07.480\nwhat he is now in charge of, and I'm planning my third act.\n\n44\n00:02:07.480 --> 00:02:13.430\nAnd if you're lucky enough to live 90 years, you can imagine separating your\n\n45\n00:02:13.430 --> 00:02:14.440\nlife into three\n\n46\n00:02:14.440 --> 00:02:15.440\nacts.\n\n47\n00:02:15.440 --> 00:02:18.400\nThe first act, it's just like a well-told story.\n\n48\n00:02:18.400 --> 00:02:23.120\nThe first act, you're defining the character, you're defining who you are, you\n\n49\n00:02:23.120 --> 00:02:23.960\n're meeting\n\n50\n00:02:23.960 --> 00:02:27.820\nyour spouse, you're getting educated, and maybe that's zero to 30, and then 30\n\n51\n00:02:27.820 --> 00:02:28.360\nto 60,\n\n52\n00:02:28.360 --> 00:02:32.240\nin my case, I'm 61, you're going through your life and the challenges and\n\n53\n00:02:32.240 --> 00:02:33.960\nbuilding a career,\n\n54\n00:02:33.960 --> 00:02:38.510\nand what I want to do between 60 and 90 is have a third act, which is sort of\n\n55\n00:02:38.510 --> 00:02:39.520\nthe resolution\n\n56\n00:02:39.520 --> 00:02:45.910\nand the celebration and the end of the story, and I have five kids and a wife I\n\n57\n00:02:45.910 --> 00:02:46.760\nlove, and\n\n58\n00:02:46.760 --> 00:02:52.160\nI have a lot of other things I want to do with my career, and so I'm starting\n\n59\n00:02:52.160 --> 00:02:52.960\nthe process\n\n60\n00:02:52.960 --> 00:02:54.680\nof planning for that as well.\n\n61\n00:02:54.680 --> 00:02:58.840\nWell, Steve, not surprisingly, I always start out at act one.\n\n62\n00:02:58.840 --> 00:03:02.360\nSo why don't you tell us about your upbringing?\n\n63\n00:03:02.360 --> 00:03:09.100\nWell, I was very fortunate that my business heroes were close to me, were part\n\n64\n00:03:09.100 --> 00:03:10.120\nof my family.\n\n65\n00:03:10.120 --> 00:03:15.100\nMy dad, Dan Burke, ran a company called Capital Cities that ended up buying ABC\n\n66\n00:03:15.100 --> 00:03:15.520\n, which was\n\n67\n00:03:15.520 --> 00:03:19.640\nsubsequently sold after he retired to the Walt Disney Company.\n\n68\n00:03:19.640 --> 00:03:24.370\nInterestingly, I was working at Disney when Michael Eisner did that deal with\n\n69\n00:03:24.370 --> 00:03:24.920\nmy dad and\n\n70\n00:03:24.920 --> 00:03:29.770\nTom Murphy, but my dad was my business hero, and I think a lot of the way I\n\n71\n00:03:29.770 --> 00:03:30.720\nthink about\n\n72\n00:03:30.720 --> 00:03:34.440\nbusiness and also a well-lived life came from my dad.\n\n73\n00:03:34.440 --> 00:03:39.120\nHe was my best man in my wedding, and really to this day my hero.\n\n74\n00:03:39.120 --> 00:03:43.820\nAnd then my uncle is going to sound like I'm bragging, but I got to tell the\n\n75\n00:03:43.820 --> 00:03:44.360\nstory the\n\n76\n00:03:44.360 --> 00:03:46.880\nway it has occurred to me.\n\n77\n00:03:46.880 --> 00:03:51.430\nMy uncle, I was very fortunate, my uncle Jim Burke was the head of Johnson &\n\n78\n00:03:51.430 --> 00:03:52.280\nJohnson during\n\n79\n00:03:52.280 --> 00:03:57.480\nthe Tylenol Crisis, and his response to the Tylenol Crisis has become a great\n\n80\n00:03:57.480 --> 00:03:58.200\ncase study\n\n81\n00:03:58.200 --> 00:04:01.240\nin how you manage an ethical enterprise.\n\n82\n00:04:01.240 --> 00:04:03.440\nAnd I was very close to my uncle.\n\n83\n00:04:03.440 --> 00:04:07.010\nI have four siblings, but I was the only one of the four of us that got invited\n\n84\n00:04:07.010 --> 00:04:07.320\nto go\n\n85\n00:04:07.320 --> 00:04:11.240\non ski trips with my uncle, and I would kind of hang out with him.\n\n86\n00:04:11.240 --> 00:04:16.810\nAnd I really felt, looking at my dad's life and my uncle's life, that what\n\n87\n00:04:16.810 --> 00:04:17.400\ncould be a\n\n88\n00:04:17.400 --> 00:04:21.740\ngreater thing than to have a great business career where you're a leader of\n\n89\n00:04:21.740 --> 00:04:22.400\npeople and\n\n90\n00:04:22.400 --> 00:04:26.290\nyou get all the intellectual challenges, but also a great family, and hopefully\n\n91\n00:04:26.290 --> 00:04:26.720\nsomebody\n\n92\n00:04:26.720 --> 00:04:28.800\nwho stands for something.\n\n93\n00:04:28.800 --> 00:04:32.720\nSo very early on, I was interested in business.\n\n94\n00:04:32.720 --> 00:04:37.700\nI went to college in the late 70s at a time when I felt like the smartest kids\n\n95\n00:04:37.700 --> 00:04:38.120\nwanted\n\n96\n00:04:38.120 --> 00:04:41.880\nto be doctors, and then the next tier wanted to be lawyers, and very few people\n\n97\n00:04:41.880 --> 00:04:42.560\nwere saying\n\n98\n00:04:42.560 --> 00:04:43.760\nI want to be a business person.\n\n99\n00:04:43.760 --> 00:04:47.200\nIt was just a different time, and I always knew.\n\n100\n00:04:47.200 --> 00:04:49.840\nAnd so right out of college I went to Harvard Business School, and I just\n\n101\n00:04:49.840 --> 00:04:50.320\ncouldn't wait\n\n102\n00:04:50.320 --> 00:04:53.920\nto get myself in a position where I could lead people.\n\n103\n00:04:53.920 --> 00:04:56.360\nFirst of all, I want to ask you about a story.\n\n104\n00:04:56.360 --> 00:05:00.160\nCan you tell us a story about your childhood days that would tell us a lot\n\n105\n00:05:00.160 --> 00:05:01.040\nabout the kind\n\n106\n00:05:01.040 --> 00:05:03.320\nof person you've become?\n\n107\n00:05:03.320 --> 00:05:11.290\nWell, I would, for whatever reason, would challenge my dad, and we would always\n\n108\n00:05:11.290 --> 00:05:11.840\ntalk\n\n109\n00:05:11.840 --> 00:05:18.230\nabout business at the dinner table, and my dad was a tough guy, and I would\n\n110\n00:05:18.230 --> 00:05:19.240\nsort of stick\n\n111\n00:05:19.240 --> 00:05:24.280\nmy chin out and challenge him, and he would discipline me when I needed to be\n\n112\n00:05:24.280 --> 00:05:25.360\ndisciplined.\n\n113\n00:05:25.360 --> 00:05:31.910\nAnd I think the process of arguing with my dad, I always knew at a young age or\n\n114\n00:05:31.910 --> 00:05:32.720\nthought\n\n115\n00:05:32.720 --> 00:05:36.440\nI knew, and still think I know, the difference between right and wrong.\n\n116\n00:05:36.440 --> 00:05:41.480\nAnd I don't know how that gets imprinted in a person, but my dad did it with me\n\n117\n00:05:41.480 --> 00:05:41.720\n.\n\n118\n00:05:41.720 --> 00:05:46.630\nAnd when I've had tough decisions in my career, I don't go through the\n\n119\n00:05:46.630 --> 00:05:48.040\nprocesses saying what\n\n120\n00:05:48.040 --> 00:05:51.280\nwould my dad do as I make those decisions, but he's always there.\n\n121\n00:05:51.280 --> 00:05:56.180\nAnd the road map of how to live a successful life and the way you impart your\n\n122\n00:05:56.180 --> 00:05:57.000\nvalues on\n\n123\n00:05:57.000 --> 00:06:00.280\npeople and an organization really came from my dad at the dinner table.\n\n124\n00:06:00.280 --> 00:06:04.800\nYeah, I never met your dad, but I've heard so many wonderful things about him.\n\n125\n00:06:04.800 --> 00:06:08.480\nYou mentioned you went to Harvard to get your master's in business.\n\n126\n00:06:08.480 --> 00:06:09.480\nYou also went to Colgate.\n\n127\n00:06:09.480 --> 00:06:13.520\nI mean, those are two very competitive schools in the sense that you've got\n\n128\n00:06:13.520 --> 00:06:14.440\nreally a driven\n\n129\n00:06:14.440 --> 00:06:18.400\nstudent body, or at least on the surface that would seem like that.\n\n130\n00:06:18.400 --> 00:06:23.720\nWhat did you learn early on about just being competitive, being around such\n\n131\n00:06:23.720 --> 00:06:24.480\ndriven people?\n\n132\n00:06:24.480 --> 00:06:28.760\nAnd how much did that education that you had influence you?\n\n133\n00:06:28.760 --> 00:06:29.760\nWell, I was a late bloomer.\n\n134\n00:06:29.760 --> 00:06:32.120\nI was lucky to get into Colgate.\n\n135\n00:06:32.120 --> 00:06:38.200\nI applied early and got in, but I had good test scores, but not great grades.\n\n136\n00:06:38.200 --> 00:06:39.760\nAnd at Colgate, I really turned on.\n\n137\n00:06:39.760 --> 00:06:42.080\nI really got very motivated.\n\n138\n00:06:42.080 --> 00:06:44.760\nAnd it was important to me to do well.\n\n139\n00:06:44.760 --> 00:06:46.520\nWhat was it that turned you on?\n\n140\n00:06:46.520 --> 00:06:50.370\nYou know, I think going back to my dad and my uncle Jim, I think I realized,\n\n141\n00:06:50.370 --> 00:06:51.200\nyou know,\n\n142\n00:06:51.200 --> 00:06:53.840\nyou got to build a track record.\n\n143\n00:06:53.840 --> 00:06:55.440\nAnd they both went to Harvard Business School.\n\n144\n00:06:55.440 --> 00:06:58.000\nIf you want to go to Harvard Business School, you better get some A's.\n\n145\n00:06:58.000 --> 00:07:01.480\nAnd so I realized I'm playing with live ammunition.\n\n146\n00:07:01.480 --> 00:07:06.620\nWhen I was in high school, I was interested in other things than doing well\n\n147\n00:07:06.620 --> 00:07:08.000\nacademically.\n\n148\n00:07:08.000 --> 00:07:11.640\nAnd then I also, I started to enjoy my classes.\n\n149\n00:07:11.640 --> 00:07:14.640\nI was a history major and loved to read.\n\n150\n00:07:14.640 --> 00:07:19.280\nAnd I started both enjoying the classes and enjoying getting good grades.\n\n151\n00:07:19.280 --> 00:07:23.860\nAnd so I applied to Harvard Business School thinking I would get a deferred at\n\n152\n00:07:23.860 --> 00:07:24.320\nthe time\n\n153\n00:07:24.320 --> 00:07:27.280\nyou would get a two year deferment and you would go work someplace.\n\n154\n00:07:27.280 --> 00:07:34.000\nAnd I ended up getting right in and was one of the youngest people in my class.\n\n155\n00:07:34.000 --> 00:07:40.530\nAnd in business school, I really met special people and really felt, I wouldn't\n\n156\n00:07:40.530 --> 00:07:40.880\nsay I'd\n\n157\n00:07:40.880 --> 00:07:45.880\nblossom, but I enjoyed the experience and the camaraderie.\n\n158\n00:07:45.880 --> 00:07:51.440\nAnd maybe the second or third week in business school, we were doing a case on\n\n159\n00:07:51.440 --> 00:07:52.400\na cranberry\n\n160\n00:07:52.400 --> 00:07:53.400\ncooperative.\n\n161\n00:07:53.400 --> 00:07:57.450\nAnd the point of the case was at what point is it time to harvest the cran\n\n162\n00:07:57.450 --> 00:07:58.160\nberries?\n\n163\n00:07:58.160 --> 00:08:01.240\nAnd there's all these different calculations you'd make.\n\n164\n00:08:01.240 --> 00:08:04.580\nAnd so toward the end of the case, a guy in the back of the room raised his\n\n165\n00:08:04.580 --> 00:08:04.980\nhand and\n\n166\n00:08:04.980 --> 00:08:08.480\nsaid to the teacher, I think you did that wrong.\n\n167\n00:08:08.480 --> 00:08:10.080\nI think there's a faster way to do that.\n\n168\n00:08:10.080 --> 00:08:11.840\nAnd the teacher said, oh, really?\n\n169\n00:08:11.840 --> 00:08:12.840\nYou do.\n\n170\n00:08:12.840 --> 00:08:13.840\nAnd the guy said, yeah, I do.\n\n171\n00:08:13.840 --> 00:08:17.120\nAnd the teacher said, well, Mr. Diamond, why don't you come up to the front of\n\n172\n00:08:17.120 --> 00:08:17.360\nthe class\n\n173\n00:08:17.360 --> 00:08:20.800\nand show me the better way to do it on the Blackboard?\n\n174\n00:08:20.800 --> 00:08:21.800\nAnd it was Jamie Diamond.\n\n175\n00:08:21.800 --> 00:08:25.460\nAnd Jamie went up, everybody in class, there were 90 people in the class, they\n\n176\n00:08:25.460 --> 00:08:26.080\nall thought\n\n177\n00:08:26.080 --> 00:08:29.240\nthis guy is committing suicide in front of us.\n\n178\n00:08:29.240 --> 00:08:32.560\nAnd at the end, he put the chalk down and went back to his chair and sat down.\n\n179\n00:08:32.560 --> 00:08:35.730\nThe teacher said, well, I'm not sure that's a better way to do it, but it's\n\n180\n00:08:35.730 --> 00:08:36.320\ncertainly\n\n181\n00:08:36.320 --> 00:08:37.640\na good way to do it.\n\n182\n00:08:37.640 --> 00:08:41.940\nAnd after the class, I went up to Jamie and said, look, I am new here and I\n\n183\n00:08:41.940 --> 00:08:42.520\nmight be\n\n184\n00:08:42.520 --> 00:08:44.080\nan admissions mistake.\n\n185\n00:08:44.080 --> 00:08:47.240\nYou're the smartest guy in the class and I want to be your friend.\n\n186\n00:08:47.240 --> 00:08:48.480\nAnd that's how I met Jamie.\n\n187\n00:08:48.480 --> 00:08:49.840\nThat was 1980.\n\n188\n00:08:49.840 --> 00:08:52.520\nAnd here we are 40 years later and we're still friends.\n\n189\n00:08:52.520 --> 00:08:59.460\nAnd to me, business school was a great way to meet people who were turned on\n\n190\n00:08:59.460 --> 00:09:00.680\nand excited\n\n191\n00:09:00.680 --> 00:09:04.600\nabout business and excited about the next stage of their life.\n\n192\n00:09:04.600 --> 00:09:06.360\nAnd I made a lot of very good friends there.\n\n193\n00:09:06.360 --> 00:09:07.360\nYeah, that's great.\n\n194\n00:09:07.360 --> 00:09:11.120\nI understand your first job out of Harvard was at General Foods.\n\n195\n00:09:11.120 --> 00:09:14.600\nHow did you land that job and what did it teach you?\n\n196\n00:09:14.600 --> 00:09:20.610\nWell, I went to General Foods because I felt that I was very young and had not\n\n197\n00:09:20.610 --> 00:09:21.400\nmanaged\n\n198\n00:09:21.400 --> 00:09:22.400\npeople.\n\n199\n00:09:22.400 --> 00:09:25.400\nAnd I thought that product management would get me a chance to really get\n\n200\n00:09:25.400 --> 00:09:26.200\ninside a business\n\n201\n00:09:26.200 --> 00:09:28.000\nand manage people.\n\n202\n00:09:28.000 --> 00:09:29.000\nAnd it did.\n\n203\n00:09:29.000 --> 00:09:34.670\nI was assigned to the Brexit Foods division and my favorite part of my job\n\n204\n00:09:34.670 --> 00:09:35.440\nafter a year\n\n205\n00:09:35.440 --> 00:09:39.720\nor so, my job was to come up with alternative uses for grape nuts.\n\n206\n00:09:39.720 --> 00:09:41.800\nWe came up with 45 different things.\n\n207\n00:09:41.800 --> 00:09:44.360\nYou could make hot grape nuts oatmeal.\n\n208\n00:09:44.360 --> 00:09:48.270\nYou could take grape nuts and put them under your tires if it was icy out and\n\n209\n00:09:48.270 --> 00:09:48.800\nthen you\n\n210\n00:09:48.800 --> 00:09:50.920\nget some traction under the tires.\n\n211\n00:09:50.920 --> 00:09:53.840\nAnd I would come in every day with new ideas and test them.\n\n212\n00:09:53.840 --> 00:09:56.120\nAnd I thought it was a great job.\n\n213\n00:09:56.120 --> 00:10:00.720\nAnd then one day my wife came in and said, \"I just got into business school.\"\n\n214\n00:10:00.720 --> 00:10:05.540\nAnd so we decided for the sake of the two of us, it was a better opportunity to\n\n215\n00:10:05.540 --> 00:10:05.760\ngo to\n\n216\n00:10:05.760 --> 00:10:06.760\nBoston.\n\n217\n00:10:06.760 --> 00:10:09.640\nSo I left General Foods and followed my wife to Boston.\n\n218\n00:10:09.640 --> 00:10:14.600\nAnd my deal was, \"I will go to Boston, but when you graduate, I get to pick the\n\n219\n00:10:14.600 --> 00:10:15.360\ncity.\"\n\n220\n00:10:15.360 --> 00:10:22.390\nSo I worked for a company called Boston Safe Deposit and Trust for a year or so\n\n221\n00:10:22.390 --> 00:10:22.520\n.\n\n222\n00:10:22.520 --> 00:10:27.310\nAnd then when my wife Gretchen was in her second year in January, I went out\n\n223\n00:10:27.310 --> 00:10:27.880\nwest and\n\n224\n00:10:27.880 --> 00:10:28.880\ngot a job with Disney.\n\n225\n00:10:28.880 --> 00:10:30.960\nAnd that's why my career really started.\n\n226\n00:10:30.960 --> 00:10:33.920\nGrape nuts and then what was the finance?\n\n227\n00:10:33.920 --> 00:10:35.440\nBoston Safe Deposit and Trust.\n\n228\n00:10:35.440 --> 00:10:36.440\nOkay.\n\n229\n00:10:36.440 --> 00:10:38.880\nNow, that's two dramatically different companies.\n\n230\n00:10:38.880 --> 00:10:40.880\nWell, I just needed a job, basically.\n\n231\n00:10:40.880 --> 00:10:42.240\nSo you just got a filler.\n\n232\n00:10:42.240 --> 00:10:43.240\nSometimes you do that.\n\n233\n00:10:43.240 --> 00:10:44.760\nBut what did you learn from that job?\n\n234\n00:10:44.760 --> 00:10:51.990\nWell, that was a time when banks were starting to get into different areas of\n\n235\n00:10:51.990 --> 00:10:53.080\nbusiness and\n\n236\n00:10:53.080 --> 00:10:55.360\nATMs were just coming out.\n\n237\n00:10:55.360 --> 00:11:02.320\nIt was a very creative, interesting, medium-sized bank, I would say.\n\n238\n00:11:02.320 --> 00:11:06.200\nAnd I worked a lot on new product development and enjoyed that.\n\n239\n00:11:06.200 --> 00:11:08.480\nBut it wasn't exactly what I wanted to do.\n\n240\n00:11:08.480 --> 00:11:12.950\nAnd I kind of knew that I wanted to get involved in a business that was more\n\n241\n00:11:12.950 --> 00:11:13.840\ncreative.\n\n242\n00:11:13.840 --> 00:11:19.940\nAnd so I picked up and went out to LA and interviewed with four or five media\n\n243\n00:11:19.940 --> 00:11:21.160\ncompanies,\n\n244\n00:11:21.160 --> 00:11:22.440\nslept on a friend's couch.\n\n245\n00:11:22.440 --> 00:11:24.800\nAnd I had interviews on Thursday and Fridays.\n\n246\n00:11:24.800 --> 00:11:28.520\nAnd then on Saturday and Sunday was at my friend's house.\n\n247\n00:11:28.520 --> 00:11:32.510\nAnd on that Sunday, on the cover of the New York Times magazine, were Michael E\n\n248\n00:11:32.510 --> 00:11:32.960\nisner and\n\n249\n00:11:32.960 --> 00:11:33.960\nFrank Wells.\n\n250\n00:11:33.960 --> 00:11:37.110\nAnd it was about how they had just arrived at the Walt Disney Company and they\n\n251\n00:11:37.110 --> 00:11:37.480\nwere going\n\n252\n00:11:37.480 --> 00:11:39.400\nto take it into a different direction.\n\n253\n00:11:39.400 --> 00:11:41.680\nAnd I read the article and said, \"This is the place for me.\"\n\n254\n00:11:41.680 --> 00:11:45.480\nAnd I had an interview previously scheduled.\n\n255\n00:11:45.480 --> 00:11:50.590\nI think it was the Tuesday after the Sunday article ran and interviewed with\n\n256\n00:11:50.590 --> 00:11:51.680\nDisney and\n\n257\n00:11:51.680 --> 00:11:52.680\ngot a job there.\n\n258\n00:11:52.680 --> 00:11:56.710\nI know that one of your claims to fame at Disney was that you developed the\n\n259\n00:11:56.710 --> 00:11:58.120\nDisney stores.\n\n260\n00:11:58.120 --> 00:12:00.560\nWhat sparked that idea?\n\n261\n00:12:00.560 --> 00:12:04.990\nWell when I got to Disney, a very interesting situation, and everybody talked\n\n262\n00:12:04.990 --> 00:12:05.680\nabout this\n\n263\n00:12:05.680 --> 00:12:10.840\nopenly, including Michael and Frank, Disney went through a period after Walt\n\n264\n00:12:10.840 --> 00:12:11.640\nDisney died\n\n265\n00:12:11.640 --> 00:12:15.040\nwhere people would literally come up with an idea and someone would say, \"Well,\n\n266\n00:12:15.040 --> 00:12:15.300\nWalt\n\n267\n00:12:15.300 --> 00:12:16.940\nnever did that.\"\n\n268\n00:12:16.940 --> 00:12:19.640\nAnd so there was this sort of lingering question what would Walt do?\n\n269\n00:12:19.640 --> 00:12:23.590\nAnd so the easiest way to kill any new idea would say, \"Well, Walt never did\n\n270\n00:12:23.590 --> 00:12:24.200\nthat.\"\n\n271\n00:12:24.200 --> 00:12:27.980\nSo my job when I came in, I was put in the Consumer Products Division, which\n\n272\n00:12:27.980 --> 00:12:28.400\nwas the\n\n273\n00:12:28.400 --> 00:12:30.080\nsleepiest part of the company.\n\n274\n00:12:30.080 --> 00:12:33.800\nIt wasn't as sexy as television or movies or theme parks.\n\n275\n00:12:33.800 --> 00:12:35.400\nIt was licensing.\n\n276\n00:12:35.400 --> 00:12:39.280\nBut my job was to look at new business ideas, new business development.\n\n277\n00:12:39.280 --> 00:12:44.290\nAnd so I decided that probably a lot of the best ideas were running around in\n\n278\n00:12:44.290 --> 00:12:45.040\nthe heads\n\n279\n00:12:45.040 --> 00:12:46.480\nof people who worked for the company.\n\n280\n00:12:46.480 --> 00:12:49.960\nThey just didn't have the forum to get their ideas out.\n\n281\n00:12:49.960 --> 00:12:55.240\nSo I came up with this, I was young, I was in my 20s, and I came up with this\n\n282\n00:12:55.240 --> 00:12:56.800\nidea that\n\n283\n00:12:56.800 --> 00:12:59.240\nwe would have a contest for the best ideas.\n\n284\n00:12:59.240 --> 00:13:03.500\nAnd anybody who won the contest would get a dinner or two anywhere in the world\n\n285\n00:13:03.500 --> 00:13:03.920\n, but\n\n286\n00:13:03.920 --> 00:13:06.760\nthey had to provide their own transportation.\n\n287\n00:13:06.760 --> 00:13:12.280\nAnd we got about 100 different business ideas, and I narrowed it down to 10.\n\n288\n00:13:12.280 --> 00:13:17.160\nAnd for each of the 10, we had some artwork and maybe a one-page summary.\n\n289\n00:13:17.160 --> 00:13:20.950\nAnd whoever came up with the idea, I organized it all, but whoever came up with\n\n290\n00:13:20.950 --> 00:13:21.520\nthe idea\n\n291\n00:13:21.520 --> 00:13:23.920\ngot to present the idea to Michael Eisner and Frank Wells.\n\n292\n00:13:23.920 --> 00:13:26.760\nI called up Michael and said, \"I've got 10 ideas on one.\n\n293\n00:13:26.760 --> 00:13:28.080\nI need three hours of your time.\"\n\n294\n00:13:28.080 --> 00:13:29.720\nAnd he said, \"Terrific.\"\n\n295\n00:13:29.720 --> 00:13:34.210\nAnd embedded in those 10 ideas were getting into the children's publishing\n\n296\n00:13:34.210 --> 00:13:35.400\nbusiness, computer\n\n297\n00:13:35.400 --> 00:13:37.760\nsoftware, daycare was one of the ideas.\n\n298\n00:13:37.760 --> 00:13:42.150\nThere were some ideas we didn't do, but one of those ideas was the Disney\n\n299\n00:13:42.150 --> 00:13:43.080\nstores.\n\n300\n00:13:43.080 --> 00:13:44.800\nSo we present these 10 ideas.\n\n301\n00:13:44.800 --> 00:13:47.240\nI'm 27 or something.\n\n302\n00:13:47.240 --> 00:13:50.390\nAnd I'm sort of the MC, the people with the ideas would come in and I would let\n\n303\n00:13:50.390 --> 00:13:50.600\nthem\n\n304\n00:13:50.600 --> 00:13:52.000\ntalk at the end of the meeting.\n\n305\n00:13:52.000 --> 00:13:56.120\nEverybody left the room and Michael and Frank said, \"That was amazing.\"\n\n306\n00:13:56.120 --> 00:13:57.840\nAnd I said, \"Well, what do you want me to do?\"\n\n307\n00:13:57.840 --> 00:13:59.640\nAnd they said, \"We want to do all 10.\"\n\n308\n00:13:59.640 --> 00:14:04.130\nAnd I said, \"Well, those people all have other jobs and they don't work for me,\n\n309\n00:14:04.130 --> 00:14:05.000\nand I don't\n\n310\n00:14:05.000 --> 00:14:06.840\nhave any experience in any of these things.\"\n\n311\n00:14:06.840 --> 00:14:10.560\nAnd they said, \"Well, just pick the best ones and start doing them.\"\n\n312\n00:14:10.560 --> 00:14:15.410\nSo I went back and the idea that I thought was the easiest to get done and\n\n313\n00:14:15.410 --> 00:14:16.240\nmaybe also\n\n314\n00:14:16.240 --> 00:14:18.520\nthe biggest potential was the Disney stores.\n\n315\n00:14:18.520 --> 00:14:20.360\nAnd the idea was very simple.\n\n316\n00:14:20.360 --> 00:14:23.400\nDisney was selling all this licensed merchandise and of course a lot of\n\n317\n00:14:23.400 --> 00:14:24.320\nmerchandise in the\n\n318\n00:14:24.320 --> 00:14:28.830\ntheme parks, but to take the Disney experience to shopping malls so that a\n\n319\n00:14:28.830 --> 00:14:29.720\nmother or father\n\n320\n00:14:29.720 --> 00:14:33.960\ncould bring their kids into a little piece of Disneyland.\n\n321\n00:14:33.960 --> 00:14:38.520\nAnd then the ability to sell the product to sort of pay for that experience\n\n322\n00:14:38.520 --> 00:14:39.200\nseemed like\n\n323\n00:14:39.200 --> 00:14:40.200\na good idea to me.\n\n324\n00:14:40.200 --> 00:14:43.080\nAnd so that's the one I chose.\n\n325\n00:14:43.080 --> 00:14:47.610\nAnd the guy who came up with the idea and I went to Disneyland and got\n\n326\n00:14:47.610 --> 00:14:48.440\nmerchandise and\n\n327\n00:14:48.440 --> 00:14:51.360\nwe went and bought some stuff and I didn't really know what I was doing and I'm\n\n328\n00:14:51.360 --> 00:14:51.680\nstill\n\n329\n00:14:51.680 --> 00:14:57.180\nnot sure how I got the capital allocation for him signed, but we opened a store\n\n330\n00:14:57.180 --> 00:14:57.440\nabout\n\n331\n00:14:57.440 --> 00:15:02.360\nnine months later in a mall close to the Burbank headquarters.\n\n332\n00:15:02.360 --> 00:15:04.360\nAnd the night before we opened I didn't sleep very well.\n\n333\n00:15:04.360 --> 00:15:07.040\nI thought I was going to get fired if it didn't work.\n\n334\n00:15:07.040 --> 00:15:10.760\nAnd if you read the press release, I'd say it's a test and we're just trying\n\n335\n00:15:10.760 --> 00:15:11.320\nsomething\n\n336\n00:15:11.320 --> 00:15:12.320\nout.\n\n337\n00:15:12.320 --> 00:15:14.600\nIt was obvious I was nervous.\n\n338\n00:15:14.600 --> 00:15:17.860\nAnd so the night before if we were opening the store at nine o'clock when the\n\n339\n00:15:17.860 --> 00:15:18.600\nmall opened,\n\n340\n00:15:18.600 --> 00:15:23.160\nI got my wife and we drove to the store at about seven thirty in the morning.\n\n341\n00:15:23.160 --> 00:15:24.320\nI'll never forget this.\n\n342\n00:15:24.320 --> 00:15:27.910\nAnd I get out of the parking lot, I walk into the mall, we get about, I don't\n\n343\n00:15:27.910 --> 00:15:28.440\nknow,\n\n344\n00:15:28.440 --> 00:15:32.220\neight hundred yards away from the opening of the store and there's a line of\n\n345\n00:15:32.220 --> 00:15:33.240\n200 people\n\n346\n00:15:33.240 --> 00:15:35.040\nwaiting to get it.\n\n347\n00:15:35.040 --> 00:15:37.040\nAnd we, Mike, I get to keep my job.\n\n348\n00:15:37.040 --> 00:15:42.570\nMike Leisner and Frank Wells came and we cut the ribbon and people just stormed\n\n349\n00:15:42.570 --> 00:15:42.680\nin.\n\n350\n00:15:42.680 --> 00:15:46.310\nAnd then Michael pulled me aside into a coffee shop afterwards and said, how\n\n351\n00:15:46.310 --> 00:15:46.880\nfast can we\n\n352\n00:15:46.880 --> 00:15:48.440\nhave a hundred stores?\n\n353\n00:15:48.440 --> 00:15:49.440\nWow.\n\n354\n00:15:49.440 --> 00:15:50.920\nWe were often running and it was great.\n\n355\n00:15:50.920 --> 00:15:55.150\nAnd I stayed with that for, I think I stayed with that for three or four, three\n\n356\n00:15:55.150 --> 00:15:55.800\nyears maybe\n\n357\n00:15:55.800 --> 00:16:01.000\nuntil we, four years until we had about a hundred and fifty stores and then I\n\n358\n00:16:01.000 --> 00:16:01.600\ngot promoted.\n\n359\n00:16:01.600 --> 00:16:02.600\nWow.\n\n360\n00:16:02.600 --> 00:16:07.130\nNow you, you also are known for being the president of Europe, Disney and you\n\n361\n00:16:07.130 --> 00:16:09.200\nwent into that situation.\n\n362\n00:16:09.200 --> 00:16:10.680\nThe business was a total mess.\n\n363\n00:16:10.680 --> 00:16:14.560\nI remember talking about this when we used to work together at the bank and you\n\n364\n00:16:14.560 --> 00:16:15.040\nturned\n\n365\n00:16:15.040 --> 00:16:16.040\nthat around.\n\n366\n00:16:16.040 --> 00:16:17.040\nHow did you do that?\n\n367\n00:16:17.040 --> 00:16:23.040\nWhen I was doing the Disney stores, I really enjoyed the customer or guest\n\n368\n00:16:23.040 --> 00:16:24.200\ninteraction\n\n369\n00:16:24.200 --> 00:16:26.240\nwith providing Disney service.\n\n370\n00:16:26.240 --> 00:16:31.750\nAnd I think that was obvious when I would talk about the Disney stores and\n\n371\n00:16:31.750 --> 00:16:32.320\nFrank Wells,\n\n372\n00:16:32.320 --> 00:16:36.130\nwho was president at the time, called me up and said, I'd like you to go into\n\n373\n00:16:36.130 --> 00:16:36.640\nthe theme\n\n374\n00:16:36.640 --> 00:16:37.640\npark business.\n\n375\n00:16:37.640 --> 00:16:41.120\nAnd I assumed he meant Disneyland, the happiest place on earth.\n\n376\n00:16:41.120 --> 00:16:45.610\nAnd when the time came, he meant you're a Disney, which was open about six\n\n377\n00:16:45.610 --> 00:16:46.360\nmonths.\n\n378\n00:16:46.360 --> 00:16:50.120\nAnd we knew the company wasn't talking about it a lot and by merit of not\n\n379\n00:16:50.120 --> 00:16:51.000\ntalking about\n\n380\n00:16:51.000 --> 00:16:54.160\nit, you kind of had a sense it was something wrong.\n\n381\n00:16:54.160 --> 00:16:59.820\nBut I went home and said to my wife, how would you like to move to Paris so I\n\n382\n00:16:59.820 --> 00:17:01.600\ncould go run\n\n383\n00:17:01.600 --> 00:17:05.920\nthe theme park at your Disney in my wife said, we'd be ex-patriots.\n\n384\n00:17:05.920 --> 00:17:08.320\nLiving in the city of Paris, you have to say yes.\n\n385\n00:17:08.320 --> 00:17:10.280\nThat's the greatest thing in the world.\n\n386\n00:17:10.280 --> 00:17:13.080\nWe had three small kids there at the time.\n\n387\n00:17:13.080 --> 00:17:18.620\nWe had a fourth child at the American hospital in Paris when we were there.\n\n388\n00:17:18.620 --> 00:17:22.070\nBut I was sent over and the luckiest thing that happened to me and it was just\n\n389\n00:17:22.070 --> 00:17:23.680\npure luck.\n\n390\n00:17:23.680 --> 00:17:25.040\nI was in a range marriage.\n\n391\n00:17:25.040 --> 00:17:29.420\nThere was an opening team and they were replacing the opening team with a\n\n392\n00:17:29.420 --> 00:17:30.640\nchairman, a guy named\n\n393\n00:17:30.640 --> 00:17:32.320\nPhilippe Borgignon.\n\n394\n00:17:32.320 --> 00:17:36.480\nAnd then I became the president and we were put together.\n\n395\n00:17:36.480 --> 00:17:37.520\nI had never met Philippe.\n\n396\n00:17:37.520 --> 00:17:41.000\nI met him at the press conference when they were announcing us.\n\n397\n00:17:41.000 --> 00:17:44.200\nAnd Philippe is fantastic and became a very good friend of mine.\n\n398\n00:17:44.200 --> 00:17:49.040\nAnd so we were charged with turning the place around.\n\n399\n00:17:49.040 --> 00:17:54.720\nAnd when we started, it was a real challenge.\n\n400\n00:17:54.720 --> 00:17:57.560\nThe public perception inside France was not good.\n\n401\n00:17:57.560 --> 00:18:03.400\nThe perception people loved to see giants stumble and the perception was Disney\n\n402\n00:18:03.400 --> 00:18:04.000\nis the\n\n403\n00:18:04.000 --> 00:18:08.560\narchetypical strong American company coming to France, a very proud country,\n\n404\n00:18:08.560 --> 00:18:09.240\nvery proud\n\n405\n00:18:09.240 --> 00:18:10.480\nof its culture.\n\n406\n00:18:10.480 --> 00:18:13.320\nAnd it was a huge story, the failure.\n\n407\n00:18:13.320 --> 00:18:15.160\nWe were called a cultural Chernobyl.\n\n408\n00:18:15.160 --> 00:18:21.730\nAnd just the press was terrible and the attendance started to decline and it\n\n409\n00:18:21.730 --> 00:18:22.960\nwas scary.\n\n410\n00:18:22.960 --> 00:18:25.720\nAnd the company almost went bankrupt.\n\n411\n00:18:25.720 --> 00:18:29.400\nWe borrowed a lot of debt and we ultimately had to restructure the debt just to\n\n412\n00:18:29.400 --> 00:18:29.720\nstay in\n\n413\n00:18:29.720 --> 00:18:31.440\nbusiness.\n\n414\n00:18:31.440 --> 00:18:33.120\nBut for me, it was fantastic.\n\n415\n00:18:33.120 --> 00:18:35.160\nIt was challenging.\n\n416\n00:18:35.160 --> 00:18:40.480\nWe were working six, seven days a week for the first two years, didn't take\n\n417\n00:18:40.480 --> 00:18:41.560\nvacations.\n\n418\n00:18:41.560 --> 00:18:45.400\nWe really thought there was a chance we were going to go under.\n\n419\n00:18:45.400 --> 00:18:50.490\nAnd we had maybe 400 Americans when I got there, 400 Americans who were\n\n420\n00:18:50.490 --> 00:18:51.720\nessentially running\n\n421\n00:18:51.720 --> 00:18:55.400\neverything and each American would have a European counterpart.\n\n422\n00:18:55.400 --> 00:19:01.880\nAnd I decided pretty early on we should send all the Americans but five home.\n\n423\n00:19:01.880 --> 00:19:05.560\nAnd when we came up with the idea, some of the Americans said, well, these\n\n424\n00:19:05.560 --> 00:19:06.000\nEuropeans\n\n425\n00:19:06.000 --> 00:19:07.320\ndon't know how to do this.\n\n426\n00:19:07.320 --> 00:19:08.320\nThey've never done this before.\n\n427\n00:19:08.320 --> 00:19:11.960\nAnd I said, well, it doesn't appear to be going very well as it is.\n\n428\n00:19:11.960 --> 00:19:15.390\nAnd I would rather have people who understand the people who are coming into\n\n429\n00:19:15.390 --> 00:19:16.160\nthe park every\n\n430\n00:19:16.160 --> 00:19:21.360\nday than people who understand how we run theme parks in Orlando or California.\n\n431\n00:19:21.360 --> 00:19:26.520\nSo we sent all the Americans home and then we reduced the head count.\n\n432\n00:19:26.520 --> 00:19:28.840\nWe restructured the debt.\n\n433\n00:19:28.840 --> 00:19:33.360\nWe changed the marketing so the marketing was appealing to Europeans.\n\n434\n00:19:33.360 --> 00:19:37.640\nBut it happened was the marketing was essentially a lift from the marketing in\n\n435\n00:19:37.640 --> 00:19:38.360\nOrlando.\n\n436\n00:19:38.360 --> 00:19:44.880\nSo you think of a typical Walt Disney World commercial, 30 seconds of a family\n\n437\n00:19:44.880 --> 00:19:45.520\nof four\n\n438\n00:19:45.520 --> 00:19:49.220\nblonde kids running around beautiful sunny sky and they're going from ride to\n\n439\n00:19:49.220 --> 00:19:49.680\nride to\n\n440\n00:19:49.680 --> 00:19:54.160\nride and everybody smiling and they're eating big max or something.\n\n441\n00:19:54.160 --> 00:19:57.940\nAnd then when a European would look at that, they would say, well, it's cloudy\n\n442\n00:19:57.940 --> 00:19:58.600\nalmost every\n\n443\n00:19:58.600 --> 00:20:00.120\nday in France in the winter time.\n\n444\n00:20:00.120 --> 00:20:03.400\nAnd you're running an ad that doesn't look like my country.\n\n445\n00:20:03.400 --> 00:20:06.960\nAnd those kids obviously are not French kids and they're eating while they're\n\n446\n00:20:06.960 --> 00:20:07.560\nwalking in\n\n447\n00:20:07.560 --> 00:20:10.560\nno French person eats anywhere other than a cafe.\n\n448\n00:20:10.560 --> 00:20:13.400\nAnd my idea of hell is to go on 10 rides in a day.\n\n449\n00:20:13.400 --> 00:20:15.840\nI want to slower pace day.\n\n450\n00:20:15.840 --> 00:20:20.110\nSo when we had a French person in charge of marketing, he instinctively knew\n\n451\n00:20:20.110 --> 00:20:20.560\nwhat kind\n\n452\n00:20:20.560 --> 00:20:23.560\nof commercials would work for the French market.\n\n453\n00:20:23.560 --> 00:20:26.920\nSo that kind of change, it took time.\n\n454\n00:20:26.920 --> 00:20:30.800\nIt took two or three years before it really started to get stabilized.\n\n455\n00:20:30.800 --> 00:20:34.000\nAnd of course, it helped that we were able to restructure the debt and put\n\n456\n00:20:34.000 --> 00:20:34.600\neverything\n\n457\n00:20:34.600 --> 00:20:35.800\nelse together.\n\n458\n00:20:35.800 --> 00:20:38.760\nBut for me, it was a hell of a learning experience.\n\n459\n00:20:38.760 --> 00:20:40.320\nIt was a real battle.\n\n460\n00:20:40.320 --> 00:20:44.860\nAnd I think the problems were so acute and we were so far away that Philippe\n\n461\n00:20:44.860 --> 00:20:45.480\nand I had\n\n462\n00:20:45.480 --> 00:20:46.960\nalmost complete autonomy.\n\n463\n00:20:46.960 --> 00:20:49.600\nWe changed the name from Europe, Disney to Disneyland Paris.\n\n464\n00:20:49.600 --> 00:20:50.760\nWe changed out the marketing.\n\n465\n00:20:50.760 --> 00:20:52.280\nWe changed.\n\n466\n00:20:52.280 --> 00:20:55.690\nAnd along the way, I learned to speak passable French to the point where I\n\n467\n00:20:55.690 --> 00:20:56.360\ncould give a\n\n468\n00:20:56.360 --> 00:21:00.640\nspeech in French, not perfect French, but in French by the end.\n\n469\n00:21:00.640 --> 00:21:03.240\nAnd it was just a fantastic learning experience.\n\n470\n00:21:03.240 --> 00:21:06.400\nAnd I was there for four years.\n\n471\n00:21:06.400 --> 00:21:10.520\nIn the second year there, my mentor, Frank Wells, tragically died in a\n\n472\n00:21:10.520 --> 00:21:11.680\nhelicopter crash\n\n473\n00:21:11.680 --> 00:21:14.680\non Easter Sunday of 1992.\n\n474\n00:21:14.680 --> 00:21:18.120\nAnd I came home two years after.\n\n475\n00:21:18.120 --> 00:21:21.240\nAnd Frank was the one sort of engineering my move over and then coming home.\n\n476\n00:21:21.240 --> 00:21:25.080\nSo after Frank passed away, I started talking to Michael Eisner.\n\n477\n00:21:25.080 --> 00:21:27.080\nI've got to do something else.\n\n478\n00:21:27.080 --> 00:21:30.440\nMy deal with Frank was I'd be here for three to five years.\n\n479\n00:21:30.440 --> 00:21:31.800\nI'm raising these kids.\n\n480\n00:21:31.800 --> 00:21:35.840\nI want them to be American kids, not French kids.\n\n481\n00:21:35.840 --> 00:21:39.670\nAnd so along the way, when I was there, the fourth year I was there, Disney\n\n482\n00:21:39.670 --> 00:21:40.360\nbought Capital\n\n483\n00:21:40.360 --> 00:21:42.000\nCities ABC.\n\n484\n00:21:42.000 --> 00:21:44.280\nAnd then it was time for me to come home.\n\n485\n00:21:44.280 --> 00:21:49.360\nMy job was at ABC, the company that my dad had worked for.\n\n486\n00:21:49.360 --> 00:21:54.640\nAnd I ended up with the office next to my dad's old office.\n\n487\n00:21:54.640 --> 00:21:57.080\nAnd I started planning it in some ways running away from it.\n\n488\n00:21:57.080 --> 00:22:00.560\nI didn't, you know, my dad was my dad.\n\n489\n00:22:00.560 --> 00:22:02.680\nBut anyway, so I ended up at ABC.\n\n490\n00:22:02.680 --> 00:22:04.320\nAnd that's how I came back.\n\n491\n00:22:04.320 --> 00:22:07.360\nAnd then I was at ABC for two years and then left to join Comcast.\n\n492\n00:22:07.360 --> 00:22:12.570\nNow, what was the biggest challenge you had as the head of your president of\n\n493\n00:22:12.570 --> 00:22:13.120\nABC?\n\n494\n00:22:13.120 --> 00:22:16.780\nWell it was a very interesting time because Disney had taken over Capital\n\n495\n00:22:16.780 --> 00:22:17.520\nCities ABC.\n\n496\n00:22:17.520 --> 00:22:21.440\nAnd I was the first Disney person put into ABC.\n\n497\n00:22:21.440 --> 00:22:25.120\nSo it was an interesting time and the cultures were quite different.\n\n498\n00:22:25.120 --> 00:22:27.400\nAnd there were fits and starts.\n\n499\n00:22:27.400 --> 00:22:30.660\nAnd I was right in the middle of defending the Disney position but also\n\n500\n00:22:30.660 --> 00:22:31.480\nunderstanding\n\n501\n00:22:31.480 --> 00:22:33.200\nthe ABC position.\n\n502\n00:22:33.200 --> 00:22:35.880\nAnd there were elements of that that I enjoyed a lot.\n\n503\n00:22:35.880 --> 00:22:39.120\nI had not been in the television business before.\n\n504\n00:22:39.120 --> 00:22:41.600\nI'd been in the entertainment business but not the television business.\n\n505\n00:22:41.600 --> 00:22:43.440\nSo I got a chance to learn television.\n\n506\n00:22:43.440 --> 00:22:48.920\nI was responsible for the television stations, radio stations, and syndication.\n\n507\n00:22:48.920 --> 00:22:52.840\nAnd one of the interesting things that happened when I was at ABC was the radio\n\n508\n00:22:52.840 --> 00:22:53.880\nbusiness consolidated.\n\n509\n00:22:53.880 --> 00:22:57.720\nIt used to be that you could only own a dozen or so.\n\n510\n00:22:57.720 --> 00:22:59.880\nRadio stations and the government changed that law.\n\n511\n00:22:59.880 --> 00:23:03.690\nAnd within two or three years companies went from owning a dozen radio stations\n\n512\n00:23:03.690 --> 00:23:04.000\n, donating\n\n513\n00:23:04.000 --> 00:23:06.160\n100 or 200.\n\n514\n00:23:06.160 --> 00:23:08.200\nAnd I saw that consolidation.\n\n515\n00:23:08.200 --> 00:23:13.200\nSo when I got a call saying would you like to meet Brian Roberts and get to\n\n516\n00:23:13.200 --> 00:23:14.360\nknow Comcast,\n\n517\n00:23:14.360 --> 00:23:17.270\nit was interesting to me because it looked to me like cable was going to\n\n518\n00:23:17.270 --> 00:23:17.960\nconsolidate.\n\n519\n00:23:17.960 --> 00:23:20.080\nThere were some of the same reasons.\n\n520\n00:23:20.080 --> 00:23:25.010\nAnd I think part of the reasons why I was interested in joining Comcast was I\n\n521\n00:23:25.010 --> 00:23:25.720\nsaw what\n\n522\n00:23:25.720 --> 00:23:29.730\nthat consolidation could do to an industry and wanted to be part of it on the\n\n523\n00:23:29.730 --> 00:23:30.600\ncable side.\n\n524\n00:23:30.600 --> 00:23:32.520\nI want to get to the Comcast in a second.\n\n525\n00:23:32.520 --> 00:23:36.320\nYou mentioned your mentorship that you had with Frank Wells.\n\n526\n00:23:36.320 --> 00:23:39.120\nHow did you cultivate that mentorship?\n\n527\n00:23:39.120 --> 00:23:40.680\nWell, he deserves a credit.\n\n528\n00:23:40.680 --> 00:23:41.760\nHe did it with me.\n\n529\n00:23:41.760 --> 00:23:45.320\nAnd I don't know what he saw in me but I'm so thankful he saw it.\n\n530\n00:23:45.320 --> 00:23:47.760\nAnd he is a very special guy.\n\n531\n00:23:47.760 --> 00:23:51.800\nAnd people didn't know until he died how important he was to the company.\n\n532\n00:23:51.800 --> 00:23:54.560\nPeople thought Michael's a CEO, it's his company.\n\n533\n00:23:54.560 --> 00:23:58.720\nAnd Michael obviously very talented and special executive.\n\n534\n00:23:58.720 --> 00:24:03.490\nBut Frank, he was kind of the glue that we didn't understand what he was doing\n\n535\n00:24:03.490 --> 00:24:03.880\nbut he\n\n536\n00:24:03.880 --> 00:24:05.280\nwas holding the company together.\n\n537\n00:24:05.280 --> 00:24:10.230\nAnd one of the stories I like to tell is my first year when I was in France on\n\n538\n00:24:10.230 --> 00:24:11.360\nThanksgiving\n\n539\n00:24:11.360 --> 00:24:13.000\nday, he called me.\n\n540\n00:24:13.000 --> 00:24:16.280\nAnd I was at the office because Thanksgiving is not a holiday in France.\n\n541\n00:24:16.280 --> 00:24:21.080\nAnd he called and said, I just want to thank you for being over there.\n\n542\n00:24:21.080 --> 00:24:24.590\nAnd I realize on Thanksgiving day it must be a tough day to be in France but I\n\n543\n00:24:24.590 --> 00:24:25.080\nreally\n\n544\n00:24:25.080 --> 00:24:26.800\nappreciate you being there.\n\n545\n00:24:26.800 --> 00:24:28.320\nHe had no agenda other than that.\n\n546\n00:24:28.320 --> 00:24:29.320\nWe didn't talk any business.\n\n547\n00:24:29.320 --> 00:24:31.520\nHe just said, thank you and hung up.\n\n548\n00:24:31.520 --> 00:24:35.070\nAnd when he passed away, we had a memorial service and a bunch of us were\n\n549\n00:24:35.070 --> 00:24:36.280\ntalking afterwards.\n\n550\n00:24:36.280 --> 00:24:39.780\nAnd everybody, I was with a group of 10 people, everybody had a story like that\n\n551\n00:24:39.780 --> 00:24:40.000\n.\n\n552\n00:24:40.000 --> 00:24:42.840\nHe just was a very special person.\n\n553\n00:24:42.840 --> 00:24:45.120\nAnd you used the word mentor.\n\n554\n00:24:45.120 --> 00:24:47.920\nI think he was a mentor or a role model.\n\n555\n00:24:47.920 --> 00:24:52.950\nHe kind of showed me the importance of keeping in touch with people and holding\n\n556\n00:24:52.950 --> 00:24:53.640\na company\n\n557\n00:24:53.640 --> 00:25:00.080\ntogether.\n\n558\n00:25:00.080 --> 00:25:05.590\nYou mentioned that you joined Comcast because you saw a potential consolidation\n\n559\n00:25:05.590 --> 00:25:06.640\nopportunity.\n\n560\n00:25:06.640 --> 00:25:12.390\nBut you went from ABC Entertainment which basically glamour business, then you\n\n561\n00:25:12.390 --> 00:25:12.680\ngo to\n\n562\n00:25:12.680 --> 00:25:17.720\nthis cable, cord, more of a nuts and bolts type business.\n\n563\n00:25:17.720 --> 00:25:19.080\nThat was a big change for you.\n\n564\n00:25:19.080 --> 00:25:22.550\nAnd when you look back at that, what did you learn in the process of making\n\n565\n00:25:22.550 --> 00:25:23.760\nthat job change?\n\n566\n00:25:23.760 --> 00:25:27.080\nWell, I'll tell you how it happened and what my motivation and thought process\n\n567\n00:25:27.080 --> 00:25:27.440\nwas.\n\n568\n00:25:27.440 --> 00:25:33.000\nSo at a certain point, Michael wanted to take ABC and move it to California.\n\n569\n00:25:33.000 --> 00:25:35.640\nAnd I didn't agree with that idea.\n\n570\n00:25:35.640 --> 00:25:40.920\nABC News and ABC ad sales and other functional areas could be in New York.\n\n571\n00:25:40.920 --> 00:25:44.260\nAnd I thought what Michael really wanted to do was get closer to prime time and\n\n572\n00:25:44.260 --> 00:25:44.600\nprime\n\n573\n00:25:44.600 --> 00:25:45.880\ntime was already in LA.\n\n574\n00:25:45.880 --> 00:25:51.040\nSo I became disenchanted and I also didn't want to move to LA.\n\n575\n00:25:51.040 --> 00:25:54.990\nAt that point, I had four kids and I didn't want to necessarily raise four or\n\n576\n00:25:54.990 --> 00:25:55.640\nfive kids\n\n577\n00:25:55.640 --> 00:25:57.280\na big family in LA.\n\n578\n00:25:57.280 --> 00:26:02.370\nAnd so I got a call one day from a headhunter who very wisely didn't say I'm a\n\n579\n00:26:02.370 --> 00:26:03.360\nheadhunter.\n\n580\n00:26:03.360 --> 00:26:05.920\nHe called and said, would you like to have lunch with Brian Roberts?\n\n581\n00:26:05.920 --> 00:26:06.920\nI said, sure.\n\n582\n00:26:06.920 --> 00:26:09.800\nWhen I called him back, I said, you're a headhunter.\n\n583\n00:26:09.800 --> 00:26:15.010\nI came down to Philadelphia and met with Ralph Roberts, a lovely guy who was\n\n584\n00:26:15.010 --> 00:26:15.720\nalive at the\n\n585\n00:26:15.720 --> 00:26:18.000\ntime and Brian's dad and met with Brian.\n\n586\n00:26:18.000 --> 00:26:22.760\nAnd I came down two or three times and I kept taking the Metroliner from New\n\n587\n00:26:22.760 --> 00:26:23.120\nYork back and\n\n588\n00:26:23.120 --> 00:26:24.120\nforth.\n\n589\n00:26:24.120 --> 00:26:28.640\nAnd each time I kept saying, I really like these guys.\n\n590\n00:26:28.640 --> 00:26:32.930\nAnd as I analyzed the decision, I talked to my dad, I talked to my wife, I\n\n591\n00:26:32.930 --> 00:26:33.960\ntalked to\n\n592\n00:26:33.960 --> 00:26:37.640\nmy best friends and everybody told me not to take the job.\n\n593\n00:26:37.640 --> 00:26:42.070\nMy dad said, well, that's a job that seems about right in terms of size for\n\n594\n00:26:42.070 --> 00:26:42.960\nyour younger\n\n595\n00:26:42.960 --> 00:26:45.400\nbrother who's 10 years younger than me.\n\n596\n00:26:45.400 --> 00:26:46.860\nIt's his way of saying, don't do it.\n\n597\n00:26:46.860 --> 00:26:50.810\nAnd I had people say, well, you're going to work for a guy whose family\n\n598\n00:26:50.810 --> 00:26:51.640\ncontrols the\n\n599\n00:26:51.640 --> 00:26:53.680\ncompany and he's younger than you.\n\n600\n00:26:53.680 --> 00:26:56.200\nYou're never going to be the CEO of the business.\n\n601\n00:26:56.200 --> 00:26:59.770\nBut I really liked Ralph and I liked Brian and I decided, you know, it looked\n\n602\n00:26:59.770 --> 00:27:01.160\nto me like\n\n603\n00:27:01.160 --> 00:27:05.540\nBrian was ambitious for the company, but he needed someone to help him run\n\n604\n00:27:05.540 --> 00:27:06.400\nthings because\n\n605\n00:27:06.400 --> 00:27:09.520\nthat's not necessarily what he does.\n\n606\n00:27:09.520 --> 00:27:14.770\nAnd I love the idea of trying to create our dream and we were dreaming the way\n\n607\n00:27:14.770 --> 00:27:15.480\nyou do.\n\n608\n00:27:15.480 --> 00:27:18.200\nI think I was 39 when I joined Comcast.\n\n609\n00:27:18.200 --> 00:27:21.960\nOur dream was to try to create the next great media company.\n\n610\n00:27:21.960 --> 00:27:25.360\nAnd we said, well, let's get big in cable because cable will consolidate.\n\n611\n00:27:25.360 --> 00:27:29.590\nAt the time, Comcast had four million subscribers and our dream was to someday\n\n612\n00:27:29.590 --> 00:27:30.520\nhave 10.\n\n613\n00:27:30.520 --> 00:27:35.360\nAnd obviously we got over 20 and we have 30 million broadband subscribers now.\n\n614\n00:27:35.360 --> 00:27:39.600\nBut we figured the market would not penalize us if we bought other cable\n\n615\n00:27:39.600 --> 00:27:40.160\ncompanies.\n\n616\n00:27:40.160 --> 00:27:42.920\nThey would assume we knew what we were doing.\n\n617\n00:27:42.920 --> 00:27:46.300\nAnd then once we got to critical mass and cable, then we would do a big content\n\n618\n00:27:46.300 --> 00:27:46.640\ndeal\n\n619\n00:27:46.640 --> 00:27:50.520\nbecause we always believed that cable and content worked well together.\n\n620\n00:27:50.520 --> 00:27:53.920\nBut I think in our mind, success would have been 10 million subscribers and\n\n621\n00:27:53.920 --> 00:27:54.520\nsomeday we\n\n622\n00:27:54.520 --> 00:27:56.640\nbuy scripts or something like that.\n\n623\n00:27:56.640 --> 00:28:02.760\nAnd we had no idea where we would someday, the building that houses NBC at 30\n\n624\n00:28:02.760 --> 00:28:03.560\nRock would\n\n625\n00:28:03.560 --> 00:28:05.880\nbe called the Comcast building.\n\n626\n00:28:05.880 --> 00:28:07.920\nWe never dreamt it.\n\n627\n00:28:07.920 --> 00:28:12.440\nIt's really interesting to me that you've partnered with Brian Roberts who's\n\n628\n00:28:12.440 --> 00:28:13.080\nthe CEO of\n\n629\n00:28:13.080 --> 00:28:15.680\nComcast for 22 years.\n\n630\n00:28:15.680 --> 00:28:18.440\nAnd it's a legendary partnership in the industry.\n\n631\n00:28:18.440 --> 00:28:22.800\nYou two are like seen as like the B-do-o.\n\n632\n00:28:22.800 --> 00:28:27.010\nAnd I find it interesting that your father, Dan Burke, partnered with Tom\n\n633\n00:28:27.010 --> 00:28:27.880\nMurphy for all\n\n634\n00:28:27.880 --> 00:28:33.880\nthose years and built Cap City and ABC, ESPN, it's amazing.\n\n635\n00:28:33.880 --> 00:28:39.170\nSo when you were watching Tom Murphy and your father build that business, what\n\n636\n00:28:39.170 --> 00:28:40.680\ndid you observe\n\n637\n00:28:40.680 --> 00:28:47.450\nfrom them that you think really helped you make the partnership work at Comcast\n\n638\n00:28:47.450 --> 00:28:47.560\n?\n\n639\n00:28:47.560 --> 00:28:51.720\nWell, I so idolized my dad and Tom.\n\n640\n00:28:51.720 --> 00:28:54.240\nI put them in a completely different category.\n\n641\n00:28:54.240 --> 00:28:57.040\nI don't think Brian and I compare.\n\n642\n00:28:57.040 --> 00:28:58.360\nBut there are some similarities.\n\n643\n00:28:58.360 --> 00:29:04.660\nI mean, Brian is very focused on acquisitions technology, where the world's\n\n644\n00:29:04.660 --> 00:29:05.480\ngoing.\n\n645\n00:29:05.480 --> 00:29:10.710\nI'm very focused on running businesses and finding leaders and solving problems\n\n646\n00:29:10.710 --> 00:29:11.280\nand dealing\n\n647\n00:29:11.280 --> 00:29:13.680\nwith the hard operating things.\n\n648\n00:29:13.680 --> 00:29:16.680\nAnd I think that's very similar to Tom and my dad.\n\n649\n00:29:16.680 --> 00:29:21.250\nAnd when I was thinking of coming to Comcast, it did not bother me that I would\n\n650\n00:29:21.250 --> 00:29:21.880\nnever be\n\n651\n00:29:21.880 --> 00:29:24.120\nCEO of this company.\n\n652\n00:29:24.120 --> 00:29:28.950\nAs long as I had enough running room and latitude to really do my thing and was\n\n653\n00:29:28.950 --> 00:29:29.920\nappreciated\n\n654\n00:29:29.920 --> 00:29:34.120\nfor doing my thing, it didn't matter that I was number two.\n\n655\n00:29:34.120 --> 00:29:36.000\nAnd obviously it didn't matter to my dad.\n\n656\n00:29:36.000 --> 00:29:38.920\nHe worked with Tom for 30 years.\n\n657\n00:29:38.920 --> 00:29:43.490\nAnd one of the things I found as I progressed in my time at Comcast, in many\n\n658\n00:29:43.490 --> 00:29:44.280\nways it was\n\n659\n00:29:44.280 --> 00:29:47.720\nbetter than being CEO.\n\n660\n00:29:47.720 --> 00:29:51.320\nPeople sort of say, well, you want to be the CEO.\n\n661\n00:29:51.320 --> 00:29:55.640\nA lot of the things that Brian did are things that I wouldn't necessarily want\n\n662\n00:29:55.640 --> 00:29:56.240\nto do.\n\n663\n00:29:56.240 --> 00:30:01.130\nAnd a lot of the things that I did that I could share with him and talk with\n\n664\n00:30:01.130 --> 00:30:01.800\nhim, he\n\n665\n00:30:01.800 --> 00:30:04.440\nmade my job more fun.\n\n666\n00:30:04.440 --> 00:30:06.280\nAnd we had plenty of disagreements.\n\n667\n00:30:06.280 --> 00:30:09.800\nI've said, I have an interesting way of thinking about it.\n\n668\n00:30:09.800 --> 00:30:14.640\nWe don't always see eye to eye, but we're always looking at the same thing.\n\n669\n00:30:14.640 --> 00:30:15.640\nWe don't always agree.\n\n670\n00:30:15.640 --> 00:30:18.720\nWe disagree, but we never fight.\n\n671\n00:30:18.720 --> 00:30:20.280\nAnd he's made my job more fun.\n\n672\n00:30:20.280 --> 00:30:24.000\nAnd I got a call one day somebody said, would you like to run one of the other\n\n673\n00:30:24.000 --> 00:30:25.040\nmedia companies?\n\n674\n00:30:25.040 --> 00:30:27.120\nThis is years ago.\n\n675\n00:30:27.120 --> 00:30:28.720\nAnd I went home and talked to my wife about it.\n\n676\n00:30:28.720 --> 00:30:32.220\nI said, I think I'd rather stay here and be number two than go there and be\n\n677\n00:30:32.220 --> 00:30:32.880\nnumber one.\n\n678\n00:30:32.880 --> 00:30:35.000\nI mean, I put all these people in place.\n\n679\n00:30:35.000 --> 00:30:36.000\nI like them.\n\n680\n00:30:36.000 --> 00:30:37.000\nI have real loyalty.\n\n681\n00:30:37.000 --> 00:30:40.000\nAnd I like being around Brian and the rest of our senior management team.\n\n682\n00:30:40.000 --> 00:30:41.840\nSo I learned that from my dad.\n\n683\n00:30:41.840 --> 00:30:47.790\nI think I might not have had the confidence to be number two for 22 years to\n\n684\n00:30:47.790 --> 00:30:48.640\nBrian if I\n\n685\n00:30:48.640 --> 00:30:52.120\ndidn't see how much my dad enjoyed working with Tom.\n\n686\n00:30:52.120 --> 00:30:56.800\nYou know, you had tremendous growth when you were running Comcast Cable.\n\n687\n00:30:56.800 --> 00:31:01.440\nWas there any result though that really frustrated you a tremendous amount or\n\n688\n00:31:01.440 --> 00:31:02.600\nwas just all just\n\n689\n00:31:02.600 --> 00:31:03.600\nboom?\n\n690\n00:31:03.600 --> 00:31:08.560\nYou know, nothing ever is completely linear.\n\n691\n00:31:08.560 --> 00:31:14.300\nIt's been frustrating sometimes for whatever reason Wall Street loves cable\n\n692\n00:31:14.300 --> 00:31:15.400\ncompanies and\n\n693\n00:31:15.400 --> 00:31:16.880\nthen hates cable companies.\n\n694\n00:31:16.880 --> 00:31:20.280\nSo I would get frustrated when our performance wasn't reflected in the stock\n\n695\n00:31:20.280 --> 00:31:21.000\nprice, which\n\n696\n00:31:21.000 --> 00:31:22.000\nI think is natural.\n\n697\n00:31:22.000 --> 00:31:26.790\nI would get frustrated with the government would sort of threaten our business\n\n698\n00:31:26.790 --> 00:31:27.800\nwith regulation\n\n699\n00:31:27.800 --> 00:31:32.320\nthat I thought was inappropriate regulation.\n\n700\n00:31:32.320 --> 00:31:35.700\nAnd then you have the normal frustrations, not every higher works out, not\n\n701\n00:31:35.700 --> 00:31:36.440\nevery strategy\n\n702\n00:31:36.440 --> 00:31:37.440\nworks out.\n\n703\n00:31:37.440 --> 00:31:42.910\nBut you know, Steve, it's amazing how life and your business has come full\n\n704\n00:31:42.910 --> 00:31:43.760\ncircle.\n\n705\n00:31:43.760 --> 00:31:46.950\nYou know, you talked about your story with your dad and then you end up at\n\n706\n00:31:46.950 --> 00:31:47.440\nDisney and\n\n707\n00:31:47.440 --> 00:31:49.960\nyou're right next to your dad's office.\n\n708\n00:31:49.960 --> 00:31:55.730\nAnd then in 2010, you and Brian, you come full circle one more time, you know,\n\n709\n00:31:55.730 --> 00:31:56.600\nand Comcast\n\n710\n00:31:56.600 --> 00:32:01.090\nrequires NBC Universal and thinking about this, as I was thinking about talking\n\n711\n00:32:01.090 --> 00:32:01.280\nto you\n\n712\n00:32:01.280 --> 00:32:05.040\nabout this, you just had to be, I'm sure you had to just be licking your chops.\n\n713\n00:32:05.040 --> 00:32:08.840\nI just couldn't wait to get ahold of that business.\n\n714\n00:32:08.840 --> 00:32:10.000\nAnd maybe I'm wrong about that.\n\n715\n00:32:10.000 --> 00:32:15.440\nSo what was inside your head when you became CEO of NBC Universal?\n\n716\n00:32:15.440 --> 00:32:17.680\nWell, we bought the company.\n\n717\n00:32:17.680 --> 00:32:22.960\nWe did the deal in 2009 and you know, it's sitting here in 2020.\n\n718\n00:32:22.960 --> 00:32:29.360\nIt's hard to fully comprehend or remember how tough things felt in 2009.\n\n719\n00:32:29.360 --> 00:32:32.440\nAnd when one of the, I think one of the reasons why we ended up with NBC\n\n720\n00:32:32.440 --> 00:32:33.800\nUniversal is G wanted\n\n721\n00:32:33.800 --> 00:32:37.120\nto sell to raise cash.\n\n722\n00:32:37.120 --> 00:32:40.640\nAnd I'm not sure there were a lot of other vidders at the time.\n\n723\n00:32:40.640 --> 00:32:46.720\nThe company had about $3.2 billion with a cash flow and we bought 51% at a $30\n\n724\n00:32:46.720 --> 00:32:47.360\nbillion\n\n725\n00:32:47.360 --> 00:32:48.360\nvaluation.\n\n726\n00:32:48.360 --> 00:32:51.870\nSlightly better than that because we got some tax benefits but called it a $30\n\n727\n00:32:51.870 --> 00:32:52.320\nbillion\n\n728\n00:32:52.320 --> 00:32:53.320\nvaluation.\n\n729\n00:32:53.320 --> 00:32:58.320\nAnd then the idea, it was a beautifully engineered deal by Brian and our CFO at\n\n730\n00:32:58.320 --> 00:32:59.000\nthe time, Mike\n\n731\n00:32:59.000 --> 00:33:00.360\nAngelakis.\n\n732\n00:33:00.360 --> 00:33:05.680\nWe could buy the other 49% over periods of time, over a seven year period\n\n733\n00:33:05.680 --> 00:33:06.720\nbasically, with\n\n734\n00:33:06.720 --> 00:33:09.160\nthe cash flow that came from the deal.\n\n735\n00:33:09.160 --> 00:33:13.240\nSo it all worked well and we contributed our cable channels.\n\n736\n00:33:13.240 --> 00:33:16.440\nSo I think we only put in five or six billion dollars worth of cash.\n\n737\n00:33:16.440 --> 00:33:18.840\nIt was a great deal.\n\n738\n00:33:18.840 --> 00:33:22.180\nBut when we presented to the board in the final board meeting to get approval\n\n739\n00:33:22.180 --> 00:33:22.480\nto go\n\n740\n00:33:22.480 --> 00:33:26.610\ndo the deal, we basically said, well, we're really excited about other cable\n\n741\n00:33:26.610 --> 00:33:27.320\nchannels and\n\n742\n00:33:27.320 --> 00:33:32.060\nwe understand those businesses because we've watched those businesses closely\n\n743\n00:33:32.060 --> 00:33:32.840\nas we've\n\n744\n00:33:32.840 --> 00:33:35.040\ngrown our cable company.\n\n745\n00:33:35.040 --> 00:33:37.360\nWe were very nervous about broadcast television.\n\n746\n00:33:37.360 --> 00:33:42.920\nThe theme parks where we talked about but were sort of an afterthought.\n\n747\n00:33:42.920 --> 00:33:46.730\nYou never know until you're inside a company and we had people say, well, NBC's\n\n748\n00:33:46.730 --> 00:33:47.320\nbeen number\n\n749\n00:33:47.320 --> 00:33:49.080\nfour for seven years in a row.\n\n750\n00:33:49.080 --> 00:33:53.600\nThey've been so far behind in prime time, they may never be able to catch up.\n\n751\n00:33:53.600 --> 00:33:54.600\nRight?\n\n752\n00:33:54.600 --> 00:33:58.070\nAnd we had a lot of people say what you ought to do is buy all the assets other\n\n753\n00:33:58.070 --> 00:33:58.600\nthan the\n\n754\n00:33:58.600 --> 00:33:59.600\nbroadcast network.\n\n755\n00:33:59.600 --> 00:34:01.840\nAnd we had people say spin off the theme parks.\n\n756\n00:34:01.840 --> 00:34:07.330\nSo you didn't really know and the FCC and Justice Department made us wait a\n\n757\n00:34:07.330 --> 00:34:08.360\nyear between\n\n758\n00:34:08.360 --> 00:34:10.160\nsigning and closing.\n\n759\n00:34:10.160 --> 00:34:17.000\nAnd so being careful to avoid gun jumping, I spent most of that year in New\n\n760\n00:34:17.000 --> 00:34:18.320\nYork getting\n\n761\n00:34:18.320 --> 00:34:23.280\nto know the executives at NBC, but also executives at CBS, ABC.\n\n762\n00:34:23.280 --> 00:34:26.160\nAnybody would have breakfast, lunch or dinner with me.\n\n763\n00:34:26.160 --> 00:34:29.890\nAnd my concept, which I learned from when we did the AT&T broadband deal is\n\n764\n00:34:29.890 --> 00:34:30.400\nwhen you\n\n765\n00:34:30.400 --> 00:34:35.120\nhave a big complicated deal, you have to hit the ground running the day the\n\n766\n00:34:35.120 --> 00:34:35.880\ndeal closes.\n\n767\n00:34:35.880 --> 00:34:39.590\nSo we actually announced the new management team, which was significantly\n\n768\n00:34:39.590 --> 00:34:40.280\ndifferent than\n\n769\n00:34:40.280 --> 00:34:44.160\nthe existing management team before the deal closed.\n\n770\n00:34:44.160 --> 00:34:47.010\nAnd we have business plans for every single area of the business so that there\n\n771\n00:34:47.010 --> 00:34:47.880\nwould be\n\n772\n00:34:47.880 --> 00:34:52.540\ncomplete and total clarity the day the deal closed because I didn't want people\n\n773\n00:34:52.540 --> 00:34:52.640\nplaying\n\n774\n00:34:52.640 --> 00:34:56.080\npolitics or I wanted people to know what the game plan was.\n\n775\n00:34:56.080 --> 00:35:01.670\nAnd we didn't get everything right, but we were very fortunate and we got lucky\n\n776\n00:35:01.670 --> 00:35:01.880\na couple\n\n777\n00:35:01.880 --> 00:35:04.560\nof times and we got lucky.\n\n778\n00:35:04.560 --> 00:35:09.540\nWe had a show called The Voice, which the previous administration had greenlit\n\n779\n00:35:09.540 --> 00:35:09.960\nand then\n\n780\n00:35:09.960 --> 00:35:14.340\nwe took it over and sort of made it better by spending more money on it,\n\n781\n00:35:14.340 --> 00:35:15.280\nessentially\n\n782\n00:35:15.280 --> 00:35:18.000\nand launching it a certain way.\n\n783\n00:35:18.000 --> 00:35:23.120\nBut we were very, very fortunate to have great people and great assets.\n\n784\n00:35:23.120 --> 00:35:25.920\nSo if you have more anxiety than what I thought.\n\n785\n00:35:25.920 --> 00:35:26.920\nI had a lot of anxiety.\n\n786\n00:35:26.920 --> 00:35:27.920\nYou weren't exactly.\n\n787\n00:35:27.920 --> 00:35:29.920\nNo, no, no, I had a lot of anxiety.\n\n788\n00:35:29.920 --> 00:35:30.920\nYou feel responsible.\n\n789\n00:35:30.920 --> 00:35:33.120\nYeah, you're responsible to your board.\n\n790\n00:35:33.120 --> 00:35:36.880\nI felt responsible to Brian and we all looked perfect now.\n\n791\n00:35:36.880 --> 00:35:40.360\nBut back then, you know, and you don't know.\n\n792\n00:35:40.360 --> 00:35:47.470\nYou have a, and again, to the point of the fundamental philosophies that I've\n\n793\n00:35:47.470 --> 00:35:48.000\nhad in\n\n794\n00:35:48.000 --> 00:35:51.000\nmy career are I believe in decentralization.\n\n795\n00:35:51.000 --> 00:35:54.840\nI think you hire the very best people you can and really let them run their\n\n796\n00:35:54.840 --> 00:35:55.760\nbusinesses.\n\n797\n00:35:55.760 --> 00:35:59.360\nAt the same time, you have tight budgeting.\n\n798\n00:35:59.360 --> 00:36:03.000\nYou conduct business meetings so that people feel free to talk about the\n\n799\n00:36:03.000 --> 00:36:03.960\nnegatives as well\n\n800\n00:36:03.960 --> 00:36:05.240\nas the positives.\n\n801\n00:36:05.240 --> 00:36:09.200\nYou don't have, allow people to gloss over.\n\n802\n00:36:09.200 --> 00:36:12.520\nYou take the business seriously, but you don't take yourself too seriously.\n\n803\n00:36:12.520 --> 00:36:15.280\nYou encourage people to laugh and challenge things.\n\n804\n00:36:15.280 --> 00:36:18.680\nYou want people to think like owners, not renters.\n\n805\n00:36:18.680 --> 00:36:23.350\nLike that, I mean, if an owner, if you own a house and a pipe burst, you fix it\n\n806\n00:36:23.350 --> 00:36:23.600\n.\n\n807\n00:36:23.600 --> 00:36:26.040\nYou don't paper over problems if you're an owner.\n\n808\n00:36:26.040 --> 00:36:29.340\nAnd what we found when we came to NBCUniversal was a very siloed company and\n\n809\n00:36:29.340 --> 00:36:30.160\nthere were parts\n\n810\n00:36:30.160 --> 00:36:33.910\nof the company where people weren't really keeping score the way we would keep\n\n811\n00:36:33.910 --> 00:36:34.560\nscore.\n\n812\n00:36:34.560 --> 00:36:38.090\nAnd there were people who were managing their careers in the press and people\n\n813\n00:36:38.090 --> 00:36:38.840\nweren't working\n\n814\n00:36:38.840 --> 00:36:42.240\nas a team and kind of fundamental management things.\n\n815\n00:36:42.240 --> 00:36:47.880\nAnd we were able to very quickly, you know, very quickly change that philosophy\n\n816\n00:36:47.880 --> 00:36:48.240\n.\n\n817\n00:36:48.240 --> 00:36:52.560\nAnd then we got lucky in a few places and then it really started to work.\n\n818\n00:36:52.560 --> 00:36:56.160\nBoth the TV business and the cable business, they're under attack.\n\n819\n00:36:56.160 --> 00:36:57.320\nThere's no question about that.\n\n820\n00:36:57.320 --> 00:37:00.800\nAnd all fronts, people are cutting the cord, they're going to streaming.\n\n821\n00:37:00.800 --> 00:37:04.740\nWhat's your key learning that you've really gained on how to lead a business\n\n822\n00:37:04.740 --> 00:37:05.320\nwhen it's\n\n823\n00:37:05.320 --> 00:37:09.600\nbeing disrupted potentially and being attacked on so many fronts?\n\n824\n00:37:09.600 --> 00:37:12.860\nWell, particularly in the broadcast business, everyone's in a while, somebody\n\n825\n00:37:12.860 --> 00:37:13.320\nelse says,\n\n826\n00:37:13.320 --> 00:37:17.280\nthis business was so much easier before cable channels came out.\n\n827\n00:37:17.280 --> 00:37:20.520\nAnd before Netflix.\n\n828\n00:37:20.520 --> 00:37:22.240\nAnd that's true.\n\n829\n00:37:22.240 --> 00:37:27.130\nIf you go back far enough, if you owned a network or you owned network\n\n830\n00:37:27.130 --> 00:37:29.280\naffiliates, those businesses\n\n831\n00:37:29.280 --> 00:37:32.160\nwere very stable, great businesses.\n\n832\n00:37:32.160 --> 00:37:38.720\nAnd today you've got so much more competition that in some ways it's harder.\n\n833\n00:37:38.720 --> 00:37:42.930\nIn some ways it's more challenging in a fun way because you're trying to figure\n\n834\n00:37:42.930 --> 00:37:43.400\nout where\n\n835\n00:37:43.400 --> 00:37:44.640\nthe future's going.\n\n836\n00:37:44.640 --> 00:37:48.970\nIf you look at NBCUniversal, about half of our profitability comes from\n\n837\n00:37:48.970 --> 00:37:50.280\ntraditional linear\n\n838\n00:37:50.280 --> 00:37:55.680\ntelevision channels, whether it's NBC or Telemundo, the Spanish broadcaster or\n\n839\n00:37:55.680 --> 00:37:56.840\nour cable channels.\n\n840\n00:37:56.840 --> 00:38:03.970\nSo think of half of eight and a half billion dollars coming from traditional\n\n841\n00:38:03.970 --> 00:38:04.040\ntelevision.\n\n842\n00:38:04.040 --> 00:38:06.540\nAnd the first thing you do when you have a job like mine is you get up in the\n\n843\n00:38:06.540 --> 00:38:06.920\nmorning\n\n844\n00:38:06.920 --> 00:38:10.560\nand you look at the ratings and you get a report card every day.\n\n845\n00:38:10.560 --> 00:38:16.360\nAnd on a good day, aggregate television ratings are down 10%.\n\n846\n00:38:16.360 --> 00:38:18.480\nAnd on a bad day, they're down 15%.\n\n847\n00:38:18.480 --> 00:38:22.080\nAnd they're down year after year after year after year.\n\n848\n00:38:22.080 --> 00:38:25.280\nAnd like physics, a body in motion tends to stay in motion.\n\n849\n00:38:25.280 --> 00:38:29.160\nMy prediction is that 10% decline is going to continue.\n\n850\n00:38:29.160 --> 00:38:31.000\nAnd there are some things that buck that trend.\n\n851\n00:38:31.000 --> 00:38:34.840\nYou can get a hit show and the NFL does better because live sports do better\n\n852\n00:38:34.840 --> 00:38:35.680\nthan scripted\n\n853\n00:38:35.680 --> 00:38:36.680\ncontent.\n\n854\n00:38:36.680 --> 00:38:41.980\nAnd large consumers are choosing to consume differently than they ever have\n\n855\n00:38:41.980 --> 00:38:42.720\nbefore.\n\n856\n00:38:42.720 --> 00:38:51.200\nI can remember before the VCR or DVR or any of the technologies, if you wanted\n\n857\n00:38:51.200 --> 00:38:52.240\nto watch\n\n858\n00:38:52.240 --> 00:38:55.720\na show, if you wanted to watch Monday Night Football and see the ending and\n\n859\n00:38:55.720 --> 00:38:56.320\ntalk about\n\n860\n00:38:56.320 --> 00:38:58.280\nit with your friends, you had to stay up till midnight.\n\n861\n00:38:58.280 --> 00:39:01.730\nIf you wanted to watch Cheers or a show like that and you didn't have a VCR,\n\n862\n00:39:01.730 --> 00:39:02.280\nyou had to\n\n863\n00:39:02.280 --> 00:39:05.080\nwatch it or you'd wait until the summer and watch a rerun.\n\n864\n00:39:05.080 --> 00:39:08.520\nAnd now that concept is completely thrown out.\n\n865\n00:39:08.520 --> 00:39:10.520\nThere are many, many different ways.\n\n866\n00:39:10.520 --> 00:39:14.710\nThere are probably 25 different ways you can watch SNL on a Sunday morning on\n\n867\n00:39:14.710 --> 00:39:15.280\nsomebody's\n\n868\n00:39:15.280 --> 00:39:20.600\nwebsite or YouTube or your DVR.\n\n869\n00:39:20.600 --> 00:39:24.240\nAnd consumers increasingly are enjoying that flexibility.\n\n870\n00:39:24.240 --> 00:39:27.800\nAnd Netflix is the example that people talk about most.\n\n871\n00:39:27.800 --> 00:39:33.670\nBut interestingly, the biggest cannibalistic threat to the traditional\n\n872\n00:39:33.670 --> 00:39:35.040\necosystem is not\n\n873\n00:39:35.040 --> 00:39:36.040\nNetflix.\n\n874\n00:39:36.040 --> 00:39:37.040\nIt's YouTube.\n\n875\n00:39:37.040 --> 00:39:40.450\nPeople are spending more time on YouTube and getting more of their traditional\n\n876\n00:39:40.450 --> 00:39:41.040\ntelevision\n\n877\n00:39:41.040 --> 00:39:43.120\non YouTube than on Netflix.\n\n878\n00:39:43.120 --> 00:39:48.120\nBut all of it, the internet writ large, is causing tremendous disruption.\n\n879\n00:39:48.120 --> 00:39:53.140\nAnd we have people sometimes almost feeling sorry for themselves saying, \"Boy,\n\n880\n00:39:53.140 --> 00:39:54.000\nthe internet\n\n881\n00:39:54.000 --> 00:39:55.360\nis really rough.\"\n\n882\n00:39:55.360 --> 00:39:59.090\nAnd what I say to people is, \"I can't think of an industry that isn't being\n\n883\n00:39:59.090 --> 00:39:59.760\ndisrupted\n\n884\n00:39:59.760 --> 00:40:00.760\nright now.\"\n\n885\n00:40:00.760 --> 00:40:02.840\nYou know, who would have...\n\n886\n00:40:02.840 --> 00:40:07.990\nYou look at retailers or you look at even car companies talking about electric\n\n887\n00:40:07.990 --> 00:40:09.080\nand autonomous\n\n888\n00:40:09.080 --> 00:40:10.080\nvehicles.\n\n889\n00:40:10.080 --> 00:40:14.560\nEvery industry is being disrupted at some level by the internet and ours is no\n\n890\n00:40:14.560 --> 00:40:15.480\nexception.\n\n891\n00:40:15.480 --> 00:40:20.000\nThe good news is our traditional ecosystem is still very healthy, still throws\n\n892\n00:40:20.000 --> 00:40:20.400\noff a\n\n893\n00:40:20.400 --> 00:40:21.400\nlot of cash.\n\n894\n00:40:21.400 --> 00:40:22.400\nIt's not growing.\n\n895\n00:40:22.400 --> 00:40:25.910\nAnd it's at the point now where it's going to start to decline, but I bet as it\n\n896\n00:40:25.910 --> 00:40:26.600\n'll decline\n\n897\n00:40:26.600 --> 00:40:27.800\nquite gradually.\n\n898\n00:40:27.800 --> 00:40:32.140\nIf you look at the history of the media business over the last 70 or so years,\n\n899\n00:40:32.140 --> 00:40:32.920\nthere's a new\n\n900\n00:40:32.920 --> 00:40:35.240\ntechnology every 10 or 20 years.\n\n901\n00:40:35.240 --> 00:40:39.280\nAnd in the beginning, you had movie theaters and then along came television.\n\n902\n00:40:39.280 --> 00:40:42.700\nEverybody thought television was going to put radio out of business or movie\n\n903\n00:40:42.700 --> 00:40:43.200\ntheaters\n\n904\n00:40:43.200 --> 00:40:44.200\nout of business.\n\n905\n00:40:44.200 --> 00:40:48.610\nAnd there's still radio companies and there's still a big theatrical movie\n\n906\n00:40:48.610 --> 00:40:49.400\nbusiness.\n\n907\n00:40:49.400 --> 00:40:54.600\nAnd so these new waves of technology tend not to put the previous technology\n\n908\n00:40:54.600 --> 00:40:55.760\nout of business.\n\n909\n00:40:55.760 --> 00:40:58.200\nCable channels didn't put broadcast out of business.\n\n910\n00:40:58.200 --> 00:41:02.070\nBroadcast television is actually making more money today than it did 10 years\n\n911\n00:41:02.070 --> 00:41:02.880\nago, 20 years\n\n912\n00:41:02.880 --> 00:41:04.400\nago or 50 years ago.\n\n913\n00:41:04.400 --> 00:41:05.400\nIt's amazing.\n\n914\n00:41:05.400 --> 00:41:08.700\nAnd people would have guessed 20 years ago that ABC, NBC, CBS and Fox would be\n\n915\n00:41:08.700 --> 00:41:09.280\nout of business\n\n916\n00:41:09.280 --> 00:41:10.920\nby now.\n\n917\n00:41:10.920 --> 00:41:15.990\nSo I think my job or the job of Jeff Schill, my successor, is you want to\n\n918\n00:41:15.990 --> 00:41:17.320\nmanage your existing\n\n919\n00:41:17.320 --> 00:41:21.680\nbusiness as well as you can while planning for the new businesses.\n\n920\n00:41:21.680 --> 00:41:26.210\nAnd therein lies the art because the new business by definition is going to\n\n921\n00:41:26.210 --> 00:41:27.600\ncompete with the\n\n922\n00:41:27.600 --> 00:41:29.000\nlegacy business.\n\n923\n00:41:29.000 --> 00:41:32.680\nAnd if you get a great show, do you put that show on NBC?\n\n924\n00:41:32.680 --> 00:41:36.320\nDo you put it on a cable channel or do you put it on Peacock, the streaming\n\n925\n00:41:36.320 --> 00:41:37.080\nservice?\n\n926\n00:41:37.080 --> 00:41:40.010\nAnd if you put it on Peacock, the streaming service, how do you manage the\n\n927\n00:41:40.010 --> 00:41:40.560\npricing?\n\n928\n00:41:40.560 --> 00:41:42.400\nHow do you get that show there?\n\n929\n00:41:42.400 --> 00:41:48.150\nHow do you get a company to root for Peacock so that people aren't constantly\n\n930\n00:41:48.150 --> 00:41:48.440\nagainst\n\n931\n00:41:48.440 --> 00:41:49.440\nit?\n\n932\n00:41:49.440 --> 00:41:52.490\nHow do you use the existing ad time in your television channels to support Peac\n\n933\n00:41:52.490 --> 00:41:52.880\nock?\n\n934\n00:41:52.880 --> 00:41:55.600\nAnd that's what we're going through right now.\n\n935\n00:41:55.600 --> 00:42:00.360\nOne of the great strengths you have, Steve, is your ability to identify talent.\n\n936\n00:42:00.360 --> 00:42:06.730\nAs this whole digital age has come upon us, how has it changed your view on\n\n937\n00:42:06.730 --> 00:42:07.860\nreally what\n\n938\n00:42:07.860 --> 00:42:11.040\nmakes a superstar talent?\n\n939\n00:42:11.040 --> 00:42:15.990\nWell, as it makes it harder for my job, it makes it harder to identify people\n\n940\n00:42:15.990 --> 00:42:17.560\nwho, if\n\n941\n00:42:17.560 --> 00:42:21.630\nyou think about it, a lot of the people that get to senior levels for\n\n942\n00:42:21.630 --> 00:42:22.720\ntelevision channels\n\n943\n00:42:22.720 --> 00:42:27.080\nor movies are people who succeeded in an analog world.\n\n944\n00:42:27.080 --> 00:42:33.040\nThey were good at identifying great story ideas or programming or marketing in\n\n945\n00:42:33.040 --> 00:42:34.160\na traditional\n\n946\n00:42:34.160 --> 00:42:35.160\nworld.\n\n947\n00:42:35.160 --> 00:42:42.260\nAnd so you're looking for people who are passionate and curious and interested\n\n948\n00:42:42.260 --> 00:42:45.400\nin the digital side.\n\n949\n00:42:45.400 --> 00:42:49.520\nI think intelligence, just sheer raw intelligence is more important than ever.\n\n950\n00:42:49.520 --> 00:42:53.870\nYou need people who are curious and learning, but also really smart because the\n\n951\n00:42:53.870 --> 00:42:54.440\nworld is\n\n952\n00:42:54.440 --> 00:42:56.160\nchanging so quickly.\n\n953\n00:42:56.160 --> 00:43:00.010\nAnd if you stand back, I think media businesses are a little different than\n\n954\n00:43:00.010 --> 00:43:01.440\nsome other businesses.\n\n955\n00:43:01.440 --> 00:43:03.440\nWe don't have factories.\n\n956\n00:43:03.440 --> 00:43:08.920\nWe have intellectual property, but we don't have moats.\n\n957\n00:43:08.920 --> 00:43:11.520\nWarren Buffett talks about moats around businesses.\n\n958\n00:43:11.520 --> 00:43:14.080\nOur businesses don't necessarily have moats.\n\n959\n00:43:14.080 --> 00:43:15.880\nThe movie business has no moats.\n\n960\n00:43:15.880 --> 00:43:17.600\nAnybody can make a movie.\n\n961\n00:43:17.600 --> 00:43:23.120\nAnd there's some things you need to do to distribute the movie.\n\n962\n00:43:23.120 --> 00:43:25.520\nBut by and large, you can get a movie distributed.\n\n963\n00:43:25.520 --> 00:43:27.480\nSo we don't have a business of moats.\n\n964\n00:43:27.480 --> 00:43:30.160\nSo it's incredibly people dependent.\n\n965\n00:43:30.160 --> 00:43:33.310\nAnd if you think about it, if someone has a great story, they can bring that\n\n966\n00:43:33.310 --> 00:43:34.040\ngreat story\n\n967\n00:43:34.040 --> 00:43:36.400\nto Disney, Warner's Paramount.\n\n968\n00:43:36.400 --> 00:43:38.200\nThey can bring that story anywhere.\n\n969\n00:43:38.200 --> 00:43:42.410\nAnd so the best thing you can do, I think, inside a broadly diversified media\n\n970\n00:43:42.410 --> 00:43:42.960\ncompany\n\n971\n00:43:42.960 --> 00:43:48.720\nis make sure that you have great people who attract other great people and\n\n972\n00:43:48.720 --> 00:43:49.640\ntalent.\n\n973\n00:43:49.640 --> 00:43:53.220\nSo I think a lot about culture and how we're treating people and how we deal\n\n974\n00:43:53.220 --> 00:43:53.960\nwith creative\n\n975\n00:43:53.960 --> 00:43:57.960\ntalent and how we deal with each other.\n\n976\n00:43:57.960 --> 00:44:01.280\nAnd then you overlay all of that complexity.\n\n977\n00:44:01.280 --> 00:44:05.620\nAnd the people that work in the entertainment business tend to be very smart,\n\n978\n00:44:05.620 --> 00:44:06.280\nsometimes\n\n979\n00:44:06.280 --> 00:44:07.960\nsensitive, sometimes.\n\n980\n00:44:07.960 --> 00:44:13.090\nI mean, think of what it takes to bear your soul in front of America as an\n\n981\n00:44:13.090 --> 00:44:13.920\nactor or a\n\n982\n00:44:13.920 --> 00:44:14.920\nnews anchor.\n\n983\n00:44:14.920 --> 00:44:20.440\nThey're very interesting personalities.\n\n984\n00:44:20.440 --> 00:44:22.440\nAnd managing all that is difficult.\n\n985\n00:44:22.440 --> 00:44:24.160\nAnd it all comes down to people.\n\n986\n00:44:24.160 --> 00:44:27.760\nYou have to manage, I mean, every business has people with big egos.\n\n987\n00:44:27.760 --> 00:44:31.880\nAnd you need a ego to a certain extent just to have the confidence to perform.\n\n988\n00:44:31.880 --> 00:44:37.080\nBut some would say that the business that you're in is loaded with the big ego.\n\n989\n00:44:37.080 --> 00:44:42.120\nHow have you dealt with the big egos in the entertainment industry?\n\n990\n00:44:42.120 --> 00:44:47.090\nWell, I think what you try to do, what we have tried to do is make sure that\n\n991\n00:44:47.090 --> 00:44:48.280\nour executives\n\n992\n00:44:48.280 --> 00:44:49.520\ndon't have big egos.\n\n993\n00:44:49.520 --> 00:44:54.070\nAnd our executives don't run around saying it's all about me or I'm\n\n994\n00:44:54.070 --> 00:44:55.440\nindispensable or\n\n995\n00:44:55.440 --> 00:44:57.320\nI did this and did that.\n\n996\n00:44:57.320 --> 00:45:01.750\nAnd we have a philosophy that we call symphony, which I don't like the word\n\n997\n00:45:01.750 --> 00:45:02.560\nsynergy.\n\n998\n00:45:02.560 --> 00:45:08.080\nI think synergies become almost an MBA catchphrase.\n\n999\n00:45:08.080 --> 00:45:11.200\nWe call our effort of working together symphony.\n\n1000\n00:45:11.200 --> 00:45:15.750\nAnd one of the advantages our company has for someone with a good idea is if\n\n1001\n00:45:15.750 --> 00:45:16.280\nyou bring\n\n1002\n00:45:16.280 --> 00:45:19.720\na movie to us and we think it's a great movie, we will make sure that it gets\n\n1003\n00:45:19.720 --> 00:45:20.960\nsupported on\n\n1004\n00:45:20.960 --> 00:45:24.800\nUSA, sci-fi, entertainment in the Olympics.\n\n1005\n00:45:24.800 --> 00:45:29.580\nAnd when we identify the priorities and we go to our executives, it's non-negot\n\n1006\n00:45:29.580 --> 00:45:30.280\niable.\n\n1007\n00:45:30.280 --> 00:45:34.280\nEverybody's going to get behind these big events.\n\n1008\n00:45:34.280 --> 00:45:38.000\nAnd what we found is we have 22% of all television viewing in America.\n\n1009\n00:45:38.000 --> 00:45:42.550\nWhen we get behind promoting a new theme park ride or the Olympics or a new\n\n1010\n00:45:42.550 --> 00:45:44.920\nmovie, it works.\n\n1011\n00:45:44.920 --> 00:45:49.290\nAnd one of the interesting side benefits of the symphony program, it was a\n\n1012\n00:45:49.290 --> 00:45:50.120\nmessage, a\n\n1013\n00:45:50.120 --> 00:45:54.020\ncultural message to everybody in the company that no individual business is\n\n1014\n00:45:54.020 --> 00:45:54.680\nimportant,\n\n1015\n00:45:54.680 --> 00:45:57.640\nmore important than the company as a whole.\n\n1016\n00:45:57.640 --> 00:46:01.560\nAnd teams do better than individual performers.\n\n1017\n00:46:01.560 --> 00:46:06.570\nAnd I think one of the ways that you get really creative people to work with\n\n1018\n00:46:06.570 --> 00:46:07.080\nyou and\n\n1019\n00:46:07.080 --> 00:46:11.680\nfor you and bring you great ideas is if they feel like what you're going to be\n\n1020\n00:46:11.680 --> 00:46:12.200\ndoing is\n\n1021\n00:46:12.200 --> 00:46:15.320\ngoing to be about their idea, not about you.\n\n1022\n00:46:15.320 --> 00:46:20.440\nSo I'm very much on the watch for people inside our company who get too carried\n\n1023\n00:46:20.440 --> 00:46:20.600\naway\n\n1024\n00:46:20.600 --> 00:46:25.220\nwith themselves and forget the reason why we're here, which is bringing great\n\n1025\n00:46:25.220 --> 00:46:26.480\nideas to\n\n1026\n00:46:26.480 --> 00:46:28.440\nAmerica and people around the world.\n\n1027\n00:46:28.440 --> 00:46:30.400\nYou mentioned the Olympics.\n\n1028\n00:46:30.400 --> 00:46:34.040\nI got to ask you, what was it like when you won the bid for the Olympics?\n\n1029\n00:46:34.040 --> 00:46:36.560\nWell, that story, that's got to be a good one.\n\n1030\n00:46:36.560 --> 00:46:41.340\nIt was scary as hell because NBC had been known as the company that brings you\n\n1031\n00:46:41.340 --> 00:46:41.560\nto the\n\n1032\n00:46:41.560 --> 00:46:44.120\nOlympics for many, many years.\n\n1033\n00:46:44.120 --> 00:46:48.870\nAnd the person most identified with the Olympics, Dick Ebersall had left the\n\n1034\n00:46:48.870 --> 00:46:49.960\ncompany a month\n\n1035\n00:46:49.960 --> 00:46:55.080\nbefore we made the formal bid and found out whether we got it or not.\n\n1036\n00:46:55.080 --> 00:46:58.840\nAnd the thought definitely occurred to me that we would be the guys who came\n\n1037\n00:46:58.840 --> 00:46:59.360\nand Dick\n\n1038\n00:46:59.360 --> 00:47:01.560\nEbersall left and we didn't get the Olympics.\n\n1039\n00:47:01.560 --> 00:47:06.590\nAnd so we flew over to Lausanne and we decided the best way to show the\n\n1040\n00:47:06.590 --> 00:47:08.400\nInternational Olympic\n\n1041\n00:47:08.400 --> 00:47:12.670\nCommittee, how much the Olympics meant to us, was to bring 20 of our people who\n\n1042\n00:47:12.670 --> 00:47:13.080\nhad been\n\n1043\n00:47:13.080 --> 00:47:17.480\nassociated with the Olympics during the last 20 or so years.\n\n1044\n00:47:17.480 --> 00:47:22.550\nAnd each person, when they identified themselves and came to their part of the\n\n1045\n00:47:22.550 --> 00:47:23.720\npresentation,\n\n1046\n00:47:23.720 --> 00:47:28.280\nwould say their name and then how many Olympics they'd been associated with.\n\n1047\n00:47:28.280 --> 00:47:31.160\nSo Molly Solomon would say, my name's Molly Solomon.\n\n1048\n00:47:31.160 --> 00:47:33.320\nThis is, I've been associated with eight Olympics.\n\n1049\n00:47:33.320 --> 00:47:35.400\nSam Flood would say I've been associated with 12.\n\n1050\n00:47:35.400 --> 00:47:39.400\nWe brought Bob Costas to the face of the Olympics.\n\n1051\n00:47:39.400 --> 00:47:44.640\nAnd our whole goal was to try to show just how important the Olympics were.\n\n1052\n00:47:44.640 --> 00:47:47.160\nAnd we ended up being the high bidder.\n\n1053\n00:47:47.160 --> 00:47:52.120\nSo we outbid Disney, ESPN, and we outbid Fox.\n\n1054\n00:47:52.120 --> 00:47:55.400\nBut we ended up getting the Olympics for eight years.\n\n1055\n00:47:55.400 --> 00:47:59.130\nAnd then after the first Olympics, second Olympics on our watch, the Social\n\n1056\n00:47:59.130 --> 00:47:59.840\nOlympics,\n\n1057\n00:47:59.840 --> 00:48:06.200\nwe announced that we were extending all the way to 2032, which was a big bet.\n\n1058\n00:48:06.200 --> 00:48:08.800\nBut we're so glad we took.\n\n1059\n00:48:08.800 --> 00:48:13.980\nAnd I was on a plane when the news came out in the United States that we had\n\n1060\n00:48:13.980 --> 00:48:14.720\ngotten the\n\n1061\n00:48:14.720 --> 00:48:15.720\nOlympics.\n\n1062\n00:48:15.720 --> 00:48:18.870\nBut I heard that people inside 30 Rock, you could hear people cheering from\n\n1063\n00:48:18.870 --> 00:48:20.280\ntheir offices\n\n1064\n00:48:20.280 --> 00:48:21.920\nwhen they found out that we got the bid.\n\n1065\n00:48:21.920 --> 00:48:25.850\nBut the flip side of that is if had we lost it, we would have been the guys\n\n1066\n00:48:25.850 --> 00:48:26.480\nthat lost\n\n1067\n00:48:26.480 --> 00:48:28.840\nthe most important property for NBC.\n\n1068\n00:48:28.840 --> 00:48:32.530\nJust listening to you talk, you really seem to put a real focus on the\n\n1069\n00:48:32.530 --> 00:48:33.800\nimportance of finding\n\n1070\n00:48:33.800 --> 00:48:38.520\nthat breakthrough and then just putting everything you can behind it.\n\n1071\n00:48:38.520 --> 00:48:42.040\nDid anybody teach you that or is that just something you picked up over time?\n\n1072\n00:48:42.040 --> 00:48:47.480\nI think a lot of that's in the DNA of NBC Sports in this particular example.\n\n1073\n00:48:47.480 --> 00:48:54.560\nBut these are inherently changing and in some ways risky businesses.\n\n1074\n00:48:54.560 --> 00:48:58.440\nIf you run the movie business the way the movie business was run 20 or 30 years\n\n1075\n00:48:58.440 --> 00:48:59.120\nago and you\n\n1076\n00:48:59.120 --> 00:49:03.340\ndon't have a point of view as to what types of movies are working and how to\n\n1077\n00:49:03.340 --> 00:49:04.520\nbuild a portfolio\n\n1078\n00:49:04.520 --> 00:49:08.640\nof movies over a course of a year, you're not going to do well.\n\n1079\n00:49:08.640 --> 00:49:11.480\nAnd so I think it's interesting.\n\n1080\n00:49:11.480 --> 00:49:14.560\nYou have to be willing to embrace new things.\n\n1081\n00:49:14.560 --> 00:49:17.040\nYou have to be a good risk manager.\n\n1082\n00:49:17.040 --> 00:49:23.200\nYou don't want to do $10, $250 million, $10-pole movies in a year and have\n\n1083\n00:49:23.200 --> 00:49:23.800\neight of them not\n\n1084\n00:49:23.800 --> 00:49:27.400\nwork and then you have the worst year in the history of the company.\n\n1085\n00:49:27.400 --> 00:49:31.680\nSo you have to be aware of risk but you have to be willing to take risk\n\n1086\n00:49:31.680 --> 00:49:32.400\notherwise you will\n\n1087\n00:49:32.400 --> 00:49:33.400\nfail.\n\n1088\n00:49:33.400 --> 00:49:34.400\nIt's interesting.\n\n1089\n00:49:34.400 --> 00:49:36.360\nI used to say this about NBC.\n\n1090\n00:49:36.360 --> 00:49:41.080\nThere was a time when NBC was trying to cost cut its way into profitability.\n\n1091\n00:49:41.080 --> 00:49:46.040\nAnd in these businesses, it's like a major league baseball team.\n\n1092\n00:49:46.040 --> 00:49:49.680\nIf you own a major league baseball team, it may not be the greatest business in\n\n1093\n00:49:49.680 --> 00:49:50.760\nthe world,\n\n1094\n00:49:50.760 --> 00:49:54.260\nbut you know that you're not going to do anything by saving money and putting a\n\n1095\n00:49:54.260 --> 00:49:54.640\nminor\n\n1096\n00:49:54.640 --> 00:49:56.320\nleague team on the field.\n\n1097\n00:49:56.320 --> 00:50:00.010\nYour only chance is to have a great team and outperform everybody else and get\n\n1098\n00:50:00.010 --> 00:50:00.560\nto the world\n\n1099\n00:50:00.560 --> 00:50:02.720\nseries and make some real money.\n\n1100\n00:50:02.720 --> 00:50:06.200\nAnd that's the same way television and movies are.\n\n1101\n00:50:06.200 --> 00:50:07.280\nYou've got to play the game.\n\n1102\n00:50:07.280 --> 00:50:11.620\nYou've got to go for it and be willing to take those risks and try to make sure\n\n1103\n00:50:11.620 --> 00:50:11.920\nthat\n\n1104\n00:50:11.920 --> 00:50:14.640\nyou have the best people making those creative decisions.\n\n1105\n00:50:14.640 --> 00:50:15.880\nYou have the best creative people.\n\n1106\n00:50:15.880 --> 00:50:16.880\nYou have great marketing.\n\n1107\n00:50:16.880 --> 00:50:21.960\nSteve, you've worked with two of the world's most famous leaders.\n\n1108\n00:50:21.960 --> 00:50:25.680\nYou're on the board of Berkshire Hathaway and you've seen Warren Buffett up\n\n1109\n00:50:25.680 --> 00:50:26.200\nclose and\n\n1110\n00:50:26.200 --> 00:50:27.200\npersonal.\n\n1111\n00:50:27.200 --> 00:50:31.720\nIt would be the number one thing you've learned from Warren Buffett.\n\n1112\n00:50:31.720 --> 00:50:36.960\nWell Warren, everybody says what a great investor Warren is and he is that.\n\n1113\n00:50:36.960 --> 00:50:43.480\nObviously he's Warren Buffett, but he's remarkable with people.\n\n1114\n00:50:43.480 --> 00:50:49.660\nHe has a very high IQ, but he probably has an EQ as high as his IQ and he's\n\n1115\n00:50:49.660 --> 00:50:51.360\nvery insightful\n\n1116\n00:50:51.360 --> 00:50:58.480\nabout people and about what makes people tick and who's a great executive.\n\n1117\n00:50:58.480 --> 00:51:03.470\nHe has the ability to identify people and businesses, the likes of which I've\n\n1118\n00:51:03.470 --> 00:51:04.280\nnever seen\n\n1119\n00:51:04.280 --> 00:51:05.280\nbefore.\n\n1120\n00:51:05.280 --> 00:51:10.360\nHow about Jamie Diamond, the chairman and CEO of JPMorgan Chase.\n\n1121\n00:51:10.360 --> 00:51:11.920\nCan you talk about it?\n\n1122\n00:51:11.920 --> 00:51:13.400\nYou go way back all the way to Harvard.\n\n1123\n00:51:13.400 --> 00:51:15.360\nYou told that story earlier.\n\n1124\n00:51:15.360 --> 00:51:21.510\nWell Jamie, he might be the best financial services executive of all time and I\n\n1125\n00:51:21.510 --> 00:51:22.000\ndon't\n\n1126\n00:51:22.000 --> 00:51:23.960\nsay that lightly.\n\n1127\n00:51:23.960 --> 00:51:24.960\nHe's the whole package.\n\n1128\n00:51:24.960 --> 00:51:30.460\nHe's obviously very smart and very driven and very insightful, but he's a great\n\n1129\n00:51:30.460 --> 00:51:31.040\nleader\n\n1130\n00:51:31.040 --> 00:51:33.000\nwith tremendous courage.\n\n1131\n00:51:33.000 --> 00:51:37.100\nBy courage I mean if he sees a problem, if there's a fire he runs in the room\n\n1132\n00:51:37.100 --> 00:51:37.800\nand tries\n\n1133\n00:51:37.800 --> 00:51:40.000\nto deal with a fire.\n\n1134\n00:51:40.000 --> 00:51:44.040\nAnd I've watched him for decades.\n\n1135\n00:51:44.040 --> 00:51:47.920\nHe hasn't lost a step.\n\n1136\n00:51:47.920 --> 00:51:51.380\nAnd you were on the JP Morgan board, you saw it, it's inspiring and he gets\n\n1137\n00:51:51.380 --> 00:51:53.000\nupset about\n\n1138\n00:51:53.000 --> 00:51:58.280\nstamping out bureaucracy and waste and he's constantly worried about stuff.\n\n1139\n00:51:58.280 --> 00:52:01.600\nI'm sure you remember as I feel like it was yesterday when we went through the\n\n1140\n00:52:01.600 --> 00:52:02.200\nfinancial\n\n1141\n00:52:02.200 --> 00:52:07.840\ncrisis and the government basically came to JP Morgan and said you need to buy\n\n1142\n00:52:07.840 --> 00:52:07.920\nBear\n\n1143\n00:52:07.920 --> 00:52:12.470\nStearns which ended up happening and the reason why JP Morgan was in a position\n\n1144\n00:52:12.470 --> 00:52:12.800\n, in\n\n1145\n00:52:12.800 --> 00:52:17.200\nmy opinion, the reason why JP Morgan was in a position to help out the country\n\n1146\n00:52:17.200 --> 00:52:17.600\nand stand\n\n1147\n00:52:17.600 --> 00:52:20.200\nup and buy Bear Stearns was Jamie Don.\n\n1148\n00:52:20.200 --> 00:52:24.680\nBecause Jamie was in his job long enough before the financial crisis to get JP\n\n1149\n00:52:24.680 --> 00:52:25.560\nMorgan Chase\n\n1150\n00:52:25.560 --> 00:52:30.260\nout of some of the things that took down other firms and into things that were\n\n1151\n00:52:30.260 --> 00:52:32.000\nsafer and more\n\n1152\n00:52:32.000 --> 00:52:33.600\nsound.\n\n1153\n00:52:33.600 --> 00:52:34.600\nAnd that's just Jamie.\n\n1154\n00:52:34.600 --> 00:52:35.600\nHe's amazing.\n\n1155\n00:52:35.600 --> 00:52:38.640\nWhat three bits of advice would you give to aspiring leaders?\n\n1156\n00:52:38.640 --> 00:52:41.040\nYou had to boil it down to three things.\n\n1157\n00:52:41.040 --> 00:52:44.600\nWell, one is I think the higher you go, the more important it is you surround\n\n1158\n00:52:44.600 --> 00:52:45.120\nyourself\n\n1159\n00:52:45.120 --> 00:52:46.120\nwith great people.\n\n1160\n00:52:46.120 --> 00:52:50.690\nIf you think about it when you first start your career, you might actually be\n\n1161\n00:52:50.690 --> 00:52:51.200\nthe one\n\n1162\n00:52:51.200 --> 00:52:55.360\ndoing the marketing campaign or writing the script.\n\n1163\n00:52:55.360 --> 00:52:59.960\nThe higher you go, the more important it is that you delegate and decentralize.\n\n1164\n00:52:59.960 --> 00:53:01.960\nThat would be the first thing.\n\n1165\n00:53:01.960 --> 00:53:06.710\nAnother thing is I think making sure that you have a culture where you reward\n\n1166\n00:53:06.710 --> 00:53:07.400\nthe right\n\n1167\n00:53:07.400 --> 00:53:08.400\nthings.\n\n1168\n00:53:08.400 --> 00:53:13.940\nAnd a lot of times people reward people who tell them what they want to hear or\n\n1169\n00:53:13.940 --> 00:53:14.600\npeople\n\n1170\n00:53:14.600 --> 00:53:19.320\nwho manipulate financial results or something else.\n\n1171\n00:53:19.320 --> 00:53:25.410\nBut organizations are remarkably sensitive, I think, about what gets rewarded\n\n1172\n00:53:25.410 --> 00:53:25.960\nand what\n\n1173\n00:53:25.960 --> 00:53:28.360\ndoesn't get rewarded.\n\n1174\n00:53:28.360 --> 00:53:32.700\nAnd then I think I set up a form, one of my favorite phrases is think like an\n\n1175\n00:53:32.700 --> 00:53:33.200\nowner,\n\n1176\n00:53:33.200 --> 00:53:34.200\nnot a renter.\n\n1177\n00:53:34.200 --> 00:53:38.360\nIt's very easy to say, \"Well, I'm only going to be in this job for a while.\"\n\n1178\n00:53:38.360 --> 00:53:40.680\nThat's a really uncomfortable thing to go do.\n\n1179\n00:53:40.680 --> 00:53:45.350\nAnd maybe if I sweep it under the rug or don't deal with it two years from now,\n\n1180\n00:53:45.350 --> 00:53:45.960\nsome other\n\n1181\n00:53:45.960 --> 00:53:47.560\npoor guy is going to have to deal with it.\n\n1182\n00:53:47.560 --> 00:53:52.320\nBut the people you really want to identify or the people who come in and say, \"\n\n1183\n00:53:52.320 --> 00:53:52.840\nWe've got\n\n1184\n00:53:52.840 --> 00:53:54.440\na problem here and I'm going to fix it.\"\n\n1185\n00:53:54.440 --> 00:53:59.230\nI realize it's going to be difficult and unpleasant and risky, but I'm going to\n\n1186\n00:53:59.230 --> 00:54:00.160\nbe the one who's\n\n1187\n00:54:00.160 --> 00:54:01.160\ngoing to fix it.\n\n1188\n00:54:01.160 --> 00:54:06.960\nSteve, one of the things that I admired about you is this is very high profile.\n\n1189\n00:54:06.960 --> 00:54:13.350\nBut Matt Lauer answered it, \"Once you dug into the facts, saw what was going on\n\n1190\n00:54:13.350 --> 00:54:13.760\n.\n\n1191\n00:54:13.760 --> 00:54:16.600\nWithin 24 hours, you made a very, very tough call.\n\n1192\n00:54:16.600 --> 00:54:21.880\nAnd here's with the guy who's literally, you could say he's the backbone of the\n\n1193\n00:54:21.880 --> 00:54:22.440\nshow,\n\n1194\n00:54:22.440 --> 00:54:24.920\nthe key to the profitability.\n\n1195\n00:54:24.920 --> 00:54:27.840\nHow do you get the backbone to make a decision like that one?\n\n1196\n00:54:27.840 --> 00:54:30.960\nThere's so much money theoretically is on the line.\n\n1197\n00:54:30.960 --> 00:54:34.560\nThat one was a pretty straightforward one.\n\n1198\n00:54:34.560 --> 00:54:39.760\nAnd it's interesting after it was over, someone said to me, the people inside\n\n1199\n00:54:39.760 --> 00:54:40.800\nthe Today Show\n\n1200\n00:54:40.800 --> 00:54:45.680\nsaid, \"We think we're going to fall to number two or a week number two.\"\n\n1201\n00:54:45.680 --> 00:54:50.880\nAnd it could mean $50 million a year in profits or whatever.\n\n1202\n00:54:50.880 --> 00:54:54.440\nI actually never thought about that.\n\n1203\n00:54:54.440 --> 00:54:59.320\nWhat I thought about was NBC News really stands for something.\n\n1204\n00:54:59.320 --> 00:55:01.400\nAnd it has always stood for something.\n\n1205\n00:55:01.400 --> 00:55:07.990\nYou go back to pre-Tom Brokaw's, to me, NBC News has always been a special\n\n1206\n00:55:07.990 --> 00:55:09.080\nbrand.\n\n1207\n00:55:09.080 --> 00:55:13.540\nAnd what I thought about is what 10 years, 20 years after I'm gone, if there's\n\n1208\n00:55:13.540 --> 00:55:14.040\nsomebody\n\n1209\n00:55:14.040 --> 00:55:19.920\ndeciding between careers, will a 25-year-old want to come to NBC News?\n\n1210\n00:55:19.920 --> 00:55:24.410\nWill it be the kind of place where they would feel comfortable and feel like it\n\n1211\n00:55:24.410 --> 00:55:25.080\nstood for\n\n1212\n00:55:25.080 --> 00:55:26.080\nsomething?\n\n1213\n00:55:26.080 --> 00:55:31.120\nSo to me, once you get all that, it was pretty simple.\n\n1214\n00:55:31.120 --> 00:55:35.040\nAnd I'm very fortunate because Brian would never second-guess, obviously, I\n\n1215\n00:55:35.040 --> 00:55:35.560\ntold him\n\n1216\n00:55:35.560 --> 00:55:41.420\nwhat we were going to do and has never second-guessed any of those tough\n\n1217\n00:55:41.420 --> 00:55:42.040\ndecisions.\n\n1218\n00:55:42.040 --> 00:55:46.800\nAnd then I think at the end of a career or at the end of a period of time in a\n\n1219\n00:55:46.800 --> 00:55:47.320\njob, people\n\n1220\n00:55:47.320 --> 00:55:51.680\nlook at those big decisions and look at what you decided to do.\n\n1221\n00:55:51.680 --> 00:55:52.680\nAnd it's interesting.\n\n1222\n00:55:52.680 --> 00:55:57.060\nSometimes when I've been in big decisions, I've called people like Jamie and\n\n1223\n00:55:57.060 --> 00:55:58.080\nWarren.\n\n1224\n00:55:58.080 --> 00:56:02.530\nAnd almost to a person, they say, \"Whatever you do, decide quickly and make it\n\n1225\n00:56:02.530 --> 00:56:03.240\nvery clear\n\n1226\n00:56:03.240 --> 00:56:07.680\nwhy you decided what you did and make the decision and then move on.\"\n\n1227\n00:56:07.680 --> 00:56:08.920\nAnd so I think that's good advice.\n\n1228\n00:56:08.920 --> 00:56:11.740\nI think companies get in trouble when they have a crisis and they don't deal\n\n1229\n00:56:11.740 --> 00:56:12.600\nwith it,\n\n1230\n00:56:12.600 --> 00:56:16.800\nor they deal with it too slowly, or they outsource the dealing with it.\n\n1231\n00:56:16.800 --> 00:56:19.840\nThey get advisors to tell them what to do.\n\n1232\n00:56:19.840 --> 00:56:23.520\nAnd the reality is, if you're the CEO, everyone's from law, you're going to\n\n1233\n00:56:23.520 --> 00:56:25.200\nhave a tough situation\n\n1234\n00:56:25.200 --> 00:56:27.280\nand you're paid to deal with it.\n\n1235\n00:56:27.280 --> 00:56:31.440\nI want to have a little fun here with a lightning round of questions and\n\n1236\n00:56:31.440 --> 00:56:33.200\nresponses here.\n\n1237\n00:56:33.200 --> 00:56:34.200\nSo you ready for this?\n\n1238\n00:56:34.200 --> 00:56:35.200\nI'm ready.\n\n1239\n00:56:35.200 --> 00:56:37.960\nOkay, the three words to best describe you.\n\n1240\n00:56:37.960 --> 00:56:42.960\nResponsible, passionate, loyal.\n\n1241\n00:56:42.960 --> 00:56:45.760\nYour favorite movie.\n\n1242\n00:56:45.760 --> 00:56:47.520\nJurassic World.\n\n1243\n00:56:47.520 --> 00:56:48.800\nFavorite TV show.\n\n1244\n00:56:48.800 --> 00:56:50.120\nThis is us.\n\n1245\n00:56:50.120 --> 00:56:52.120\nYour favorite universal ride.\n\n1246\n00:56:52.120 --> 00:56:53.120\nHarry Potter.\n\n1247\n00:56:53.120 --> 00:56:56.120\nYour biggest pet peeve.\n\n1248\n00:56:56.120 --> 00:57:01.440\nPeople who are dishonest with the facts of their business.\n\n1249\n00:57:01.440 --> 00:57:06.090\nAnd if you could trade places with one person for a day, who would it be and\n\n1250\n00:57:06.090 --> 00:57:06.640\nwhy?\n\n1251\n00:57:06.640 --> 00:57:10.360\nOther than you, I would have to pick somebody very young.\n\n1252\n00:57:10.360 --> 00:57:14.650\nMaybe Evan Spiegel at Snap, because he's very young and is running a great,\n\n1253\n00:57:14.650 --> 00:57:15.280\ninteresting\n\n1254\n00:57:15.280 --> 00:57:16.280\nstory.\n\n1255\n00:57:16.280 --> 00:57:19.720\nAnd share a random fact about you that most people wouldn't know.\n\n1256\n00:57:19.720 --> 00:57:22.820\nWhen I applied to Harvard Business School, I also applied the same year to\n\n1257\n00:57:22.820 --> 00:57:23.640\nHarvard Divinity\n\n1258\n00:57:23.640 --> 00:57:25.920\nSchool and I was accepted.\n\n1259\n00:57:25.920 --> 00:57:27.320\nI did not go.\n\n1260\n00:57:27.320 --> 00:57:31.320\nSteve, you have an incredible wife Gretchen.\n\n1261\n00:57:31.320 --> 00:57:33.360\nYou've got five wonderful kids.\n\n1262\n00:57:33.360 --> 00:57:36.240\nHow has seeing them grow up and fluent your business thinking?\n\n1263\n00:57:36.240 --> 00:57:40.430\nAnd you talked earlier about how you and Gretchen went to that first Disney\n\n1264\n00:57:40.430 --> 00:57:41.120\nstore.\n\n1265\n00:57:41.120 --> 00:57:46.640\nHow have you brought your family into your business and balanced your life?\n\n1266\n00:57:46.640 --> 00:57:48.800\nYou're known for being able to do it all.\n\n1267\n00:57:48.800 --> 00:57:51.960\nWell, you're a real family man yourself.\n\n1268\n00:57:51.960 --> 00:57:56.360\nBut it helps when the businesses you're in are fun.\n\n1269\n00:57:56.360 --> 00:58:00.610\nMy kids like to go to Saturday night live occasionally and we go to our theme\n\n1270\n00:58:00.610 --> 00:58:01.360\nparks and\n\n1271\n00:58:01.360 --> 00:58:05.600\nthere's a lot of fun parts about being associated with this job.\n\n1272\n00:58:05.600 --> 00:58:09.640\nBut I've always, and people say this, but I really believe it.\n\n1273\n00:58:09.640 --> 00:58:12.000\nI don't think your job's the most important thing in your life.\n\n1274\n00:58:12.000 --> 00:58:16.600\nI think at the end of the day, your family's much more important than your job.\n\n1275\n00:58:16.600 --> 00:58:21.450\nAnd I will take a call from many of my five kids and I get many, many calls\n\n1276\n00:58:21.450 --> 00:58:22.280\nwhen they have\n\n1277\n00:58:22.280 --> 00:58:25.560\na problem or they're disappointed or they need advice.\n\n1278\n00:58:25.560 --> 00:58:30.880\nI'll take that call before any call I get from anybody inside the company.\n\n1279\n00:58:30.880 --> 00:58:36.510\nAnd they know that and I think they've always been interested in what I was\n\n1280\n00:58:36.510 --> 00:58:37.320\ndoing.\n\n1281\n00:58:37.320 --> 00:58:40.280\nAnd they were very upset when I left Euro Disney.\n\n1282\n00:58:40.280 --> 00:58:43.710\nThey were young kids then because I would bring them into the park when it was\n\n1283\n00:58:43.710 --> 00:58:44.200\nclosed.\n\n1284\n00:58:44.200 --> 00:58:46.520\nThey were like, why would anybody ever leave this job?\n\n1285\n00:58:46.520 --> 00:58:50.320\nWe need our dad to keep running a theme park.\n\n1286\n00:58:50.320 --> 00:58:51.320\nBut I've been blessed.\n\n1287\n00:58:51.320 --> 00:58:53.720\nI love my wife and I love my kids.\n\n1288\n00:58:53.720 --> 00:58:58.270\nAnd anybody who says their job is the most important thing in their life is\n\n1289\n00:58:58.270 --> 00:58:58.720\nprobably\n\n1290\n00:58:58.720 --> 00:59:01.360\nmaking a mistake, in my opinion.\n\n1291\n00:59:01.360 --> 00:59:05.020\nWell, Steve, I started out by talking about how much I admire you after hearing\n\n1292\n00:59:05.020 --> 00:59:06.280\nthis story.\n\n1293\n00:59:06.280 --> 00:59:08.240\nAnd I've learned a few things that I didn't know.\n\n1294\n00:59:08.240 --> 00:59:10.200\nI admire you even more.\n\n1295\n00:59:10.200 --> 00:59:12.360\nYou are an incredible leader.\n\n1296\n00:59:12.360 --> 00:59:15.320\nAnd congratulations on a fabulous career.\n\n1297\n00:59:15.320 --> 00:59:16.680\nAnd I know it's not over yet.\n\n1298\n00:59:16.680 --> 00:59:19.920\nYou're going to just keep plowing away every day.\n\n1299\n00:59:19.920 --> 00:59:22.200\nBut the best is yet to come for you, Steve.\n\n1300\n00:59:22.200 --> 00:59:23.200\nWell, thank you, David.\n\n1301\n00:59:23.200 --> 00:59:24.200\nIt means a lot.\n\n1302\n00:59:24.200 --> 00:59:25.200\nI respect you enormously.\n\n1303\n00:59:25.200 --> 00:59:26.800\nIt means a lot coming from you.\n\n1304\n00:59:26.800 --> 00:59:27.800\nThanks.\n\n1305\n00:59:27.800 --> 00:59:28.800\nAppreciate it.\n\n1306\n00:59:28.800 --> 00:59:40.920\nWell, I think you can tell it's really obvious that Steve is a stand up guy.\n\n1307\n00:59:40.920 --> 00:59:43.920\nHe loves to work with his teams to solve problems.\n\n1308\n00:59:43.920 --> 00:59:47.720\nHe draws out their ideas and then he trusts them to execute.\n\n1309\n00:59:47.720 --> 00:59:51.000\nBoy, that's a great coach right there.\n\n1310\n00:59:51.000 --> 00:59:54.780\nSo this week, as a part of your weekly personal development plan, I want you to\n\n1311\n00:59:54.780 --> 00:59:55.680\nreally embrace\n\n1312\n00:59:55.680 --> 00:59:57.800\nthat same mentality.\n\n1313\n00:59:57.800 --> 01:00:02.160\nAsk yourself, where could my organization benefit from fresh thinking?\n\n1314\n01:00:02.160 --> 01:00:05.600\nHow can I draw out my team's creativity and wisdom?\n\n1315\n01:00:05.600 --> 01:00:06.600\nWho knows?\n\n1316\n01:00:06.600 --> 01:00:09.800\nYou might uncover an idea as big as Disney stores.\n\n1317\n01:00:09.800 --> 01:00:13.460\nOr you know, maybe you'll simply find a solution to a problem that's been\n\n1318\n01:00:13.460 --> 01:00:15.120\naround for years.\n\n1319\n01:00:15.120 --> 01:00:18.480\nBut either way, you're going to show your team that you value their ideas.\n\n1320\n01:00:18.480 --> 01:00:20.400\nAnd that's going to mean a ton.\n\n1321\n01:00:20.400 --> 01:00:22.280\nSo do you want to know how leaders lead?\n\n1322\n01:00:22.280 --> 01:00:26.560\nWhat we learned today is that great leaders draw out their team's wisdom.\n\n1323\n01:00:26.560 --> 01:00:30.340\nThanks again for tuning in to another episode of How Leaders Lead, where every\n\n1324\n01:00:30.340 --> 01:00:30.880\nThursday\n\n1325\n01:00:30.880 --> 01:00:34.870\nyou get to listen in while I interview some of the very best leaders in the\n\n1326\n01:00:34.870 --> 01:00:35.480\nworld.\n\n1327\n01:00:35.480 --> 01:00:39.240\nI make it a point to give you something simple on each episode that you can\n\n1328\n01:00:39.240 --> 01:00:40.040\napply to your\n\n1329\n01:00:40.040 --> 01:00:44.080\nbusiness so that you will become the best leader that you can be.\n\n1330\n01:00:44.080 --> 01:00:54.080\n[BLANK_AUDIO]\n\n1331\n01:00:54.080 --> 01:01:14.080\n[ Silence ]","

David Novak 0:04

Welcome to How leaders lead where every week you get to listen in while I interview some of the very best leaders in the world, I break down the key learning so that by the end of the episode, you'll have something simple you can apply as you develop into a better leader. That's what this podcast is all about. Today's guest is Steve Burke, Chairman of NBC Universal. You know, since taking over NBC Universal in 2011, he almost tripled the profits, I believe something from like $3 billion to over $8 billion, and is leading the fastest growing media company in the world. Before that, Steve was the number two guide Comcast working alongside the CEO Brian Roberts, as they acquired NBC Universal. And before that, he led hugely successful efforts at Disney, and ABC, he has accomplished so much. But you know, in every role, Steve just knows how to get the most out of the people around him. It's how he was able to lead the turnaround at Disney World, Paris, and how the whole idea of Disney Stores even came to exist. When you sit and talk with Steve, you realize a lot of times the truly breakthrough ideas are already there within your team. And it's your job as a leader to draw them out. Steve is a master at doing just that. And I know you're going to learn a ton from him. So here's my conversation with my good friend, and soon to be yours, Steve Burke.

Steve, thanks so much for taking the time to have this conversation. Well, thank you, David, we're gonna get to your your business career. But what's the most fun you have? Right now what's going on outside of your work that you have the most fun with?

Steve Burke 1:47

Well, I'm planning what happens next. And I announced that I was leaving in mid December, I have a great successor, a guy named Jeff shell, who I've worked with for 15 years, and he's moved around our company. So he's managed a lot of the different aspects of what he is now. In charge of, and I'm planning my third act. And if if you're lucky enough to live 90 years, you can imagine separating your life into three acts. And the first act your it's just like a well told story, the first act, you're, you're defining the character, you're defining who you are, you're meeting your spouse, you're getting educated, and maybe that zero to 30, and then 30 to 60. In my case, I'm 61. You're going through your life and the challenges and building a career. And what I want to do between 60 and 90, is have a third act, which is sort of the resolution and the celebration and the end of the story. And I have five kids and a wife I love and I have a lot of other things I want to do with with my career. And so I'm, I'm starting the process of planning for that, as well.

David Novak 2:54

We'll see. Not surprisingly, I always start out at Act One. Okay, so, so why don't you tell us about your upbringing?

Steve Burke 3:02

Well, I was very fortunate that my business heroes were were close to me were part of my family. My dad, Dan Burke, ran a company called capital cities that ended up buying ABC, which was subsequently sold after he retired to the Walt Disney Company. Interestingly, I was working at Disney when Michael Eisner did that deal with my dad and Tom Murphy. But my dad was my business hero. And I think a lot of the way I think about business and also a well lived life, came from my dad, he was my best man in my wedding. And really, to this day, my hero and then my uncle. This is gonna sound like I'm bragging. But I got to tell the story, the way it's, it has occurred to me, my uncle, I was very fortunate. My Uncle Jim Burke, was the head of Johnson and Johnson during the Tylenol crisis. And his response to the Tylenol crisis has become a great case study in how you've managed an ethical enterprise. And I was very close to my uncle. I have four siblings, but I was the only one of the four of us that got invited to go on ski trips with my uncle, and I would kind of hang out with him. And I, I really felt looking at my dad's life and my uncle's life, that that what could be a greater thing than to have a great business career where you're a leader of people, and you get all the intellectual challenges, but also a great family and hopefully somebody who stands for something. And so very early on, I was interested in business. I went to college in the late 70s, at a time when I felt like the smartest kids wanted to be doctors. And then the next tier wanted to be lawyers, and very few people were saying, I want to be a business person. That was just a different time. And I always knew and so right out of college, I went to Harvard Business School and I just couldn't wait to get myself in a position where I could lead people.

David Novak 4:53

First of all, I want to ask you about a story. Can you tell us a story about your childhood days it would tell us a lot about the kind of person you become,

Steve Burke 5:03

well, I, I would, for whatever reason would would challenge my dad. And we would always talk about business at the dinner table. And my, my dad was a tough guy, and I would sort of stick my chin out and challenge him. And we would, he would discipline me when I needed to be disciplined. And I think the process of arguing with my dad, I always knew at a young age or thought I knew and still think I know the difference between right and wrong. And I don't know how that gets imprinted in a person. But my dad did it with me. And when I've had tough decisions in my career, I don't I don't go through the process as saying, What would my dad do as I make those decisions, but he's always there, and the roadmap of how to live a successful life and the way you impart your values on people. And an organization really came from my dad at the dinner table.

David Novak 6:00

Yeah, I never met your dad. But I've heard so many wonderful things about him. You know, you you mentioned you went to Harvard to get your master's in business, you also went to Colgate? I mean, those are two very competitive schools in the sense that you got really a driven student body, or at least on the surface, it would seem like that, you know, what did you learn early on about, you know, just being competitive being around such driven people? And how much did that that education that you had influenced you?

Steve Burke 6:28

Well, I was a late bloomer, I was lucky to get into Colgate. I applied early and got in but I had good test scores, but not great grades. And at Colgate, I really turned on, I really got very motivated, and it was important to me to do well,

David Novak 6:43

what was it that turned you on? You know, I

Steve Burke 6:46

think going back to my dad and my uncle Jim, I think I realized, you know, you got to build a track record. And they both went to Harvard Business School, if you want to go to Harvard Business School, you better get some A's. And so I realized I'm playing with live ammunition. When I was in high school, I was interested in other things than then doing well academically. And then I also I started to enjoy my classes, I was a history major and love to read. And I started both enjoying the classes and enjoying getting good grades. And so I applied to Harvard business school thinking I would get a deferred. At the time, you would get a two year deferment, and you would go work someplace. And I ended up getting right in and was one of the youngest people in my class. And in business school, I really met special people and really felt I wouldn't sad blossom, but I enjoyed the experience in the camaraderie. And maybe the second or third week in business school, we were doing a case on a cranberry cooperative. And the the point of the case was, at what point? Is it time to harvest the cranberries and there's all these different calculations you'd make. And so toward the end of the case, a guy in the back of the room raised his hand and said to the teacher, I think you did that wrong. I think there's a faster way to do that. And the teacher said, Oh, really? You do? And the guy said, Yeah, I do. And the teacher said, Well, Mr. Dimon, why don't you come up to the front of the class and, and show me the better way to do it on the blackboard. And it was Jamie Dimon. And Jamie went up everybody in class, there were 90 people in the class, they all thought, This guy's committing suicide in front of us. And at the end, he put the chalk down and went back to his chair and sat down, the teacher said, Well, I'm not sure that's a better way to do it. But it's certainly a good way to do it. And after the class, I went up to Jamie and said, Look, I am new here. And I might be an admissions mistake. You're the smartest guy in the class, and I want to be your friend. And that's how I met Jamie. And that was 1980. And here we are 40 years later, and we're still friends. And to me business school was a great way to meet people who were turned on and excited about business and excited about the next stage of their life. And I made a lot of very good friends there.

David Novak 9:05

Yeah, that's great. I understand your first job out of Harvard was General Foods. How'd you land that job? And what did it teach you?

Steve Burke 9:14

Well, I went to gentleman foods because I felt that I was very young and had not managed people. And I thought that product management would give me a chance to really get inside a business and manage people and and it did, I was assigned to the breakfast foods division and my favorite part of my job after a year or so my job was to come up with alternative uses for Grape Nuts. We came up with 45 different things. You could make hot Grape Nuts, oatmeal, you could take red nuts and put them under your tires if it was ice out, and then you get some traction under the tires. And I would come in every day with new ideas and test them and I thought it was a great job. And then one day my wife came in and said I just got into business school. And so we decided for the sake of the two of us, it was a better opportunity to go to Boston. So I left General Foods and followed my wife to Boston. And my deal was I will go to Boston, but when you graduate, I get to pick the city. So I worked for a company called Boston safe deposit and trusts for a year or so. And then when, when my wife Gretchen was in, in her second year, in January, I went out west and got a job with Disney. So my career really started Grape Nuts, and then the the, what was the financial safe deposit and trust? Okay, now,

David Novak 10:35

those are two, that's two dramatically different. I just needed a job, basically. So you just gotta fill or sometimes you do that. But what did you learn from that job?

Steve Burke 10:44

Well, that was a time when banks were starting to get into different areas of business and ATMs were just coming out. And it was a very creative, interesting, medium sized bank, I would say. And I, I worked a lot on new product development and enjoyed that. But it wasn't, it wasn't exactly what I wanted to do. And I kind of knew that I wanted to get involved in a business that was more creative. And so I picked up and went out to LA and interviewed with four or five media companies, slept on a friend's couch, and I had interviews on Thursday and Fridays, and then on Saturday, and Sunday, was at my friend's house. And on that Sunday on the cover, the New York Times Magazine, were Michael Eisner and Frank Wells. And it was about how they had just arrived at the Walt Disney Company, and they were going to take it into a different direction. And I read the article and said, This is the place for me and I had an interview previously scheduled. I think it was the Tuesday after the Sunday article ran and interviewed with Disney and got a job there.

David Novak 11:52

I know that one of your claims to fame it at Disney was that you developed the Disney Stores. You know, what sparked that idea?

Steve Burke 12:00

Well, when I got to Disney, very interesting situation. And everybody talked about this openly, including Michael and Frank. Disney went through a period after Walt Disney died, where people would literally come up with an idea and someone would say, well, Walt never did that. And so there was this sort of lingering question, what would Walt do? And so the easiest way to kill any new idea would say, well, well never did that. So my job when I came in, I was put in the Consumer Products Division, which was the sleepiest part of the company, it wasn't as sexy as television or movies or Theme Parks was licensing. But my job was to look at new business ideas, new business development. And so I decided that probably a lot of the best ideas were running around in the heads of people who work for the company, they just had didn't have the forum to get their ideas out. So I came up with this, I, you know, I was young, I was in my 20s. And I came up with this idea that we would have a contest for the best ideas, and anybody who won the contest would get a dinner for two anywhere in the world, but they had to provide their own transportation. And we got about 100 different business ideas, and I narrowed it down to 10. And for each of the 10, we had some artwork, and maybe a one page summary. And whoever came up with the idea, I organized it all. But whoever came up with the idea got to present the idea to Michael Eisner and Frank Wells, I called up Michael and said, I've got 10 ideas on what I need three hours of your time. And he said, terrific. And embedded in those 10 ideas. We're getting into the children's publishing business computer software. Daycare was one of the ideas, there were some ideas we didn't do. But one of those ideas was the Disney Stores. So we present these 10 ideas, I'm 27, or something. And I'm sort of the emcee that people would the ideas would come in, and I would let them talk at the end of the meeting, everybody left the room. And Michael and Frank said, That was amazing. And I said, Well, what do you want me to do? And they said, we want to do all 10. And I said, Well, those people all have other jobs, and they don't work for me. And I don't have any experience in any of these things. And they said, well just pick the best ones and start doing them. So I went back and the the idea that I thought was the easiest to get done. And maybe also the biggest potential was the Disney Stores. And the idea was very simple. We Disney was selling all this licensed merchandise, and of course, a lot of merchandise in the theme parks, but to take the Disney experience to shopping malls so that a mother or father could bring their kids into a little piece of Disneyland and then the ability to sell the product into to sort of pay for that experience seemed like a good idea to me. And so that's the one I chose. And the guy who came up with the idea and I went to Disneyland and got merchandise and we went and bought some stuff and I didn't really know what I was doing and I'm still not sure how I got the capital allocation form. Signed but we opened a store about nine months later in a in a mall closed. To the Burbank headquarters. And the night before we opened, I didn't sleep very well, I thought I was gonna get fired if didn't work. And if you read the press release, I say it's a test and we're just trying something out. It was obvious I was nervous. And so the night before, if we were opening the store at nine o'clock when the mall opened, I got my wife and we drove to the store at about 730 in the morning. And never forget this, and I get out of the parking lot. I walk into the mall, we get about, I don't know, 800 yards away from the opening of the store. And there's a line of 200 people waiting to get it. And we like I get to get my job. Frank Wells came, we cut the ribbon and people just stormed in. And then Michael pulled me aside into a coffee shop afterwards and said, How fast can we have 100 stores? Wow, we're off and running. And it was it was great. And I stayed with that for I think I stayed with that for three or four, three years, maybe until we for years until we had about 150 stores. And then I got promoted.

David Novak 16:01

Wow. Now you, you also are known for being the president of Euro Disney and you went into that situation. The business was a total mess. I remember talking about this, we used to work together at the bank. And you turn that around. How do you do that?

Steve Burke 16:16

When I was doing the Disney Stores, I really enjoyed the customer guest interaction with providing Disney service. And I think that was obvious when I would have would talk about the Disney Stores. And Frank Wells, who was president at the time, called me up and said I'd like you to go into the theme park business and I assumed he meant Disneyland happiest place on earth. And when the time came, he meant you're a Disney which was open about six months. And we knew the company wasn't talking about a lot. And by narrative not talking about it, you kind of had a sense that was something wrong. But I went home and said to my wife, how would you like to move to Paris so I could go run the theme park if you're a Disney and my wife said we'd be expatriates living in this city of Paris, you have to say yes, that's the greatest thing in the world. We had three small kids there at the time, we had a fourth child at the American Hospital in Paris when we were there. But I was sent over and the luckiest thing that happened to me. And it was just pure luck. I was an arranged marriage, there was an opening team. And they were replacing the opening team with it with a chairman a guy named Felipe Borg and Yarrow. And then I became the president. And we were we were put together I had never met Felipe I met him at the press conference when they were announcing us. And Felipe is fantastic and became a very good friend of mine. And so we were charged with turning the place around. And when we started. It was it was a real challenge. The public perception inside France was not good that perception. People love to see giant stumble. And the perception was Disney is the archetypical strong American company coming to France and very proud country, very proud of its culture. And it was a huge story, the failure, we were called a cultural Chernobyl real and just the press was terrible. And the attendance started to decline. And it was really scary. And the company almost went bankrupt. We borrowed a lot of data, and we ultimately had to restructure the debt just to stay in business. But for me, it was fantastic. It was challenging. You know, we were working six, seven days a week. For the first two years didn't take vacations. I mean, we really thought there was a chance we're gonna go under. And we had maybe 400 Americans when I got there 400 Americans who were essentially running everything, and each American would have a European counterpart. And I decided pretty early on, we should send all the Americans but five home. And when we've came up with the idea of some of the American Civil these Europeans don't know how to do this. They've never done this before. And I said, Well, that doesn't appear to be going very well as it is. And I would rather have people who understand the people who are coming into the park every day than people who understand how we run theme parks in Orlando or California. So we set all the Americans home. And then we reduced the headcount. we restructured the debt. We changed the marketing. So the marketing was appealing to Europeans. What had happened was the marketing was essentially a lift from the marketing in Orlando. So you think of a typical Walt Disney World commercial 30 seconds of a family of four blond kids running around beautiful sunny sky and they're going from ride to ride ride and everybody's smiling and they're eating, you know, Big Macs or something. And then when a European would look at that, they would say, well, it's cloudy almost every day in France in the wintertime. and you're running an ad that doesn't look like my country. And those kids, obviously are not French kids, and they're eating while they're walking, and no French person eats anywhere other than a cafe. And my idea of Hell is to go on 10 rides in a day, I want a slower paced day. So when we had a French person in charge of marketing, he instinctively knew what kind of commercials would work for the French market. And so so that that kind of change, it took time, it took two or three years before it really started to get stabilized. And of course, it helped that we were able to restructure the debt and put everything else together. But for me, it was a hell of a learning experience. You know, it was it was a real battle. And I think the problems were so acute, and we were so far away, that Felipe and I had almost complete autonomy. We changed the name from Euro Disney to Disneyland Paris, we changed out the marketing we changed. And along the way, I learned to speak passable French to the point where I could give a speech and in French, not perfect French, but in French by the end, and it was just a fantastic learning experience. And I was there for four years. In this second year there. My mentor, Frank Wells tragically died in a helicopter crash on Easter Sunday of 1992. And I came home two years after. And Frank was the one sort of engineering my move over and then coming home. So after Frank passed away, I started talking to Michael Eisner, I've got to do something else I, you know, my deal with Frank was I'd be here for three to five years, I need to I'm raising these kids, I want them to be American kids, not French kids. And so along the way, when I was there, the fourth year, I was there, Disney bought capital cities ABC. And then it was time for me to come home. My job was at ABC, the company that my dad had, wow. And I ended up with the office next to my dad's old office, never planning it, in some ways running away from it. I didn't didn't you know, my dad was my dad. And but anyway, so I ended up at ABC. And that's how I came back. And then I was at ABC for two years and then left to join computers. Now,

David Novak 22:07

what was the biggest challenge you had as the head of your president of ABC?

Steve Burke 22:12

Well, it was a very interesting time because Disney had taken over capital cities, ABC, and I was the first Disney person put into ABC. So it was it was an interesting time. And the cultures were quite different than it was. There were fits and starts. And I was right in the middle of defending the Disney position, but also understanding the ABC position. And there were elements of that, that I enjoyed a lot. I did not I had not been in the television business before. I'd been in the entertainment business, but not the television business. So I got a chance to learn television, was responsible for the television stations, radio stations in syndication. And one of the interesting things that happened when I was at ABC was the radio business consolidated, it used to be that you could only own a dozen or so radio stations and the government changed that law. And within two or three years, companies went from owning a dozen radio stations to owning 100 or 200. And I saw that consolidation. So when I got a call saying, Would you like to meet Brian Roberts and get to know Comcast, it was interesting to me, because it looked to me like cable was going to consolidate. In other words, some of the same reasons. And I think part of the reasons why I was interested in joining Comcast was I saw what that consolidation could could do to an industry and wanted to be part of it on the cable side.

David Novak 23:30

I want to get to the Comcast in a second. But you mentioned your mentorship that you had with Frank Wells, you know, how did you cultivate that mentorship?

Steve Burke 23:38

Well, he did, he deserves a credit. He did it with me, and I don't know what he saw on me. But I'm so thankful he saw it and he is a very special guy. And people didn't know until he died, how important he was to the company. People thought Michael is the CEO of his company. And Michael, obviously very talented and special executive. But Frank, he was kind of the glues that that we didn't understand what he was doing. But he was holding the company together. And he one of the stories I like to tell is my first year when I was in France on Thanksgiving day he called me and I was at the office because Thanksgivings, not a holiday in France. And he called him said, I just want to want to thank you for being over there. And I realized on Thanksgiving Day, it must be a tough day to be in France, but I really appreciate you being there. He had no agenda. Other than that we didn't talk any business. He just said thank you and hung up. And when he passed away, we had a memorial service and a bunch of us were talking afterwards. And everybody I was with a group of 10 people everybody had a story like that. He just was a very special person and you use the word mentor. I think he was a mentor or a role model. He kind of showed me the importance of keeping in touch with people and you know holding a company together

David Novak 25:00

You mentioned that you join Comcast because you saw a potential consolidation, opportunity. But you went from ABC Entertainment, which basically glamour business, then you go this cable cord, you know, more of a nuts and bolts type business. You know, that was a big change for you. And when you look back at that, what did you learn in the process of making that job change?

Steve Burke 25:23

Well, I'll tell you how it happened and what my motivation and thought process was. So at a certain point, Michael wanted to take ABC and move it to California. And I, I didn't agree with that idea, ABC News and ABC, ad sales and other functional areas could be in New York. And I thought what Michael really wanted to do is get closer to primetime and primetime was already in LA. So I became disenchanted. And I also didn't want to move to LA. At that point, I had four kids, and I didn't want to necessarily raise four or five kids a big family in LA. And so I got a call one day from a headhunter who very wisely, didn't say, I'm a headhunter, he called and said, Would you like to have lunch with Brian Robertson? I said, Sure. When I called him back, I said, You're a headhunter. And I came down to Philadelphia and met with Ralph Roberts, a lovely guy who was alive at the time, and Brian's dad and met with Brian and I came down two or three times, and I kept taking the MetroLiner from New York, back and forth. And each time, I kept saying, I really liked these guys. And as I analyzed the decision, I talked to my dad, I talked to my wife, I talked to my best friends, and everybody told me not to take the job. My dad said, Well, that's a that's a job. That's a seems about right, in terms of size for your younger brother, who's 10 years younger than me. It's his way of saying, Don't do it. And I had people say, Well, you're going to work for a guy whose family controls the company, and he's younger than you, you're never going to be the CEO of the business. But I really liked Ralph. And I like Brian, and I decided, and I would look to me, like, Brian was ambitious for the company, but he needed someone to help him run things, because that's not necessarily what he does. And I love the idea of trying to create our dream, and we were dreaming the way you do, I think I was 39. When I joined Comcast, our dream was to try to create the next great media company. And we said, well, let's get big in cable, because cable will consolidate at the time Comcast had 4 million subscribers. And our dream was to someday have 10. And obviously, we got over 20. And we have 30 million broadband subscribers now. But we figured the market would not penalize us. If we bought other cable companies, they would assume we knew what we're doing. And then once we got to critical mass and cable, then we would do a big content deal, because we always believe that cable and content worked well together. But I think in our mind, success would have been 10 million subscribers. And someday we buy scripts, something like that. And we had no idea where we would, you know, someday the the building that houses MDC, at 30 Rock would be called the Comcast building. We never dreamt it.

David Novak 28:07

It's really interesting to me that you, you've partnered with Brian Roberts, who's the CEO of Comcast for 22 years. And it's a legendary partnership in the industry. You too are like seen as like the the duo, you know. And I find it interesting that your father, Dan Burke, partnered with Tom Murphy for all those years and Bill Cap City and ABC, ESPN, it's amazing. So when you were watching Tom Murphy and your father, Bill, that business, what did you observe from them that you think really helped you make the partnership work at Comcast?

Steve Burke 28:47

Well, I, you know, I, so idolized my dad, and Tom, I put them in a completely different category. I don't think Brian and I compare, but there are some similarities. I mean, Brian is very focused on acquisitions technology, where the world's going, I'm very focused on running businesses and finding leaders and solving problems and dealing with the hard operating things. And I think that's very similar to Tom and my dad. And when I was thinking of coming to Comcast, it did not bother me that I would never be CEO of this company. As long as I had enough running room and latitude to really do my thing and was appreciated for doing my thing. It didn't matter that I was number two. And obviously, it didn't matter to my dad. He worked with Tom for 30 years. And one of the things I found as I progressed in my time at Comcast, in many ways, it was better than being CEO. You know, people sort of say, well, you want to be the CEO. A lot of the things that Brian did are things that I wouldn't necessarily want to do and a lot of the things that I did that I could share with him and talk with him. He made my job more fun. And we had plenty of disagreements I've I've said, I've a interesting way of thinking about it. We don't always see eye to eye. But we're always looking at the same thing. We don't always agree, we disagree, but we never fight. Right? And he's made my job more fun. And I got a call one day somebody said, Would you like to run one of one of the other media companies, this is years ago. And I went home and talked to my wife about it. I said, you know, I think I'd rather stay here and be number two, then go there and be number one. I mean, I've put all these people in place, I like them, I have real loyalty. And I like being around Brian and the rest of our senior management team. So I learned that from my dad, I think I would I might not have had the confidence to be number two for 22 years to Brian, if I didn't see how much my dad enjoyed working with Tom,

David Novak 30:51

you know, you had tremendous growth when you were running Comcast cable. Was there any result though, that really frustrated you a tremendous amount, or was just all just boom,

Steve Burke 31:04

you know, nothing, nothing ever is completely linear. It's been frustrating sometimes. For whatever reason, Wall Street, loves cable companies, and then hates cable companies. And so I would get frustrated when our performance wasn't reflected in the stock price, which I think is natural, I would get frustrated when the government would sort of threatened our business with regulation that I thought was inappropriate regulation. And then you have the normal frustrations, not every hire works out. Not every strategy works out. But

David Novak 31:38

you know, Steve, it's amazing how life and your business has come full circle, you

Speaker 1 31:43

know, you've talked about your story with your dad, and then you end up at Disney. And you're right next to your dad's office, you

David Novak 31:49

know, and then in 2010, you, you and Brian, you come full circle one more time, you know, and Comcast requires NBC Universal and thinking about this, as I was thinking about talking to you about this, you just had to be I'm sure you had to just be licking your chops. I bet you just couldn't wait to get a hold of that business. And maybe I'm wrong about that. But what what was inside your head when you became CEO of NBC Universal? Well,

Steve Burke 32:15

we bought the company. We did the deal in 2009. And it's sitting here in 2020. It's it's hard to fully comprehend or remember how tough things felt in 2009. And when one of the I think one of the reasons why we ended up with NBC Universal is GE wanted to sell to raise cash. And I'm not sure there were a lot of other bidders at the time, the company had about $3.2 billion was a cash flow. And we did we bought 51% at a $30 billion valuation slightly better than that, because we got some tax benefits, but call it a $30 billion valuation. And then the idea, it was a beautifully engineered deal by Brian and our CFO at the time, Mike angelakis, we could buy the other 49% over periods of time over a seven year period, basically, with the cash flow that came from the deal. So if all worked well, and we contributed our cable channels, so we I think we only put in five or $6 billion with the cash was a great deal. But when we presented to the board in the final board meeting to get approval to go do the deal. We basically said what we're really excited about are the cable channels. And we understand those businesses because we've watched those businesses closely. As we've grown our cable company. And we were very nervous about broadcast television, the theme parks were we talked about, but we're sort of an afterthought. You never know until you're inside a company. And we had people say, well, NBC has been number four for seven years in a row. They've been so far behind in primetime, they may never be able to catch up. Right. And we had a lot of people say what you ought to do is buy all the assets other than the broadcast network. And we had people say spin off theme parks, so you didn't really know. And the FCC and Justice Department made us wait a year between signing and closing. And so being careful to avoid gun jumping. I spent most of that year in New York getting to know the executives in NBC but also executives at CBS, ABC, anybody would have breakfast, lunch or dinner with me. And my concept which I learned from when we did the AT and T broadband deal is when you have a big complicated deal. You have to hit the ground running the day the deal closes. So we actually announced the new management team which was significantly different than the existing management team before the deal closed. And we have business plans for every single area of the business so that there would be complete and total clarity the day the deal closed because I didn't want people playing politics or I wanted people to know what the game plan was. And we were we didn't get everything right but we're we're very full Jeanette, and we got lucky a couple of times. And we got lucky. We had a show called The Voice which the previous administration had greenlit. And then we took it over and sort of made it better by having spending more money on it as essentially in launching it a certain way. But, you know, we were very, very fortunate to have great people and great assets, we had a lot of you have more anxiety than what I thought I had a lot of anxiety. I don't want exactly. A lot of anxiety, you know, you feel responsible. Yeah, you, you're responsible to your board, I felt responsible to Brian, and, you know, it

David Novak 35:35

all looks perfect. Now, but back then, no, it

Steve Burke 35:38

was and you don't know, you know, you have, and again, to, to, to the point of, you know, the fundamental philosophies that I've had in my career are I believe in decentralization, I think you hire the very best people you can and really let them run their businesses. At the same time you have tight budgeting you you conduct business meetings, so that people feel free to talk about the negatives, as well as the positives, you don't have allow people to gloss over. You take the business seriously. But you don't take yourself too seriously. You encourage people to laugh and challenge things. You want people to think like owners not renters. by that. I mean, if an owner, if you own a house, and the pipe bursts, you fix it. You don't paper over problems if you're an owner. And what we found when we came to NBCUniversal, was a very siloed company. And there were parts of the company where people weren't really keeping score, the way we would keep score, and there were people who were managing their careers in the press, and people weren't working as a team and kind of fundamental management things. And we were able to very quickly, you know, very quickly change that philosophy. And then we got lucky in a few places. And then it really started to work,

David Novak 36:52

both the TV business and the cable business, they're under attack, there's no question about that on all fronts, people are cutting the cord, they're going to streaming, what's your key learning that you've really gained on on how to lead a business when it's being disrupted, potentially, and being attacked on so many fronts?

Steve Burke 37:09

Well, particularly in the broadcast business, every once in a while somebody will say this, this business was so much easier, before cable channels came out and before Netflix. And that's true that if you go back far enough, if you owned a network or you owned network affiliates, those businesses were very stable, great businesses. And today, you've got so much more competition. That in some ways, it's it's harder in some ways, it's, it's more challenging in a fun way, because you're trying to figure out where the future is going. If you look at NBCUniversal, about half of our profitability comes from traditional linear television channels, whether it's NBC or Telemundo, the Spanish broadcaster or our cable channels, so think of, you know, half of eight and a half a billion dollars coming from traditional television. And the first thing you do when you have a job like mine is you get up in the morning and you look at the ratings and you get the you get a report card every day. And on a good day. Aggregate television ratings are down 10%. And on a bad day, they're down 15%. And they're down year after year after year after year. And like physics, a body in motion tends to stay in motion. My prediction is that 10% decline is going to continue. And there are some things that bucked that trend, you can get a hit show and the NFL does better because live sports do better than scripted content. But by and large consumers are choosing to consume differently than they ever have. Before I can remember before the VCR or DVR or you know any any of the technologies if you wanted to watch a show. If you wanted to watch Monday Night Football and see the ending and talk about it with your friends. You had to stay up till midnight if you wanted to watch cheers or a show like that and you didn't have a VCR you had to watch it. Or you'd wait until the summer and watch a rerun now that that concept is completely thrown out there many many different ways and probably 25 different ways you can watch SNL on a Sunday morning on somebody's website, or YouTube or your DVR. And consumers and increasingly are enjoying that flexibility and Netflix is the is the example that people talk about most but interestingly, the biggest cannibalistic threat to the traditional ecosystem is not Netflix. It's YouTube. People are spending more time on YouTube and getting more of their traditional television on YouTube than on Netflix. But all of it the internet writ large is causing tremendous disruption and we have people sometimes almost feeling sorry for themselves saying, you know, boy, the internet is really rough. And what I say to people is I can't think of an industry that isn't being disrupted, right Now, you know who would have you look at retailers or you look at even car companies talking about electric and autonomous vehicles, every industry is being disrupted at some level by the internet, and ours is no exception. The good news is our traditional eco system is still very healthy, still throws off a lot of cash. It's not growing. And it's at the point now where it's going to start to decline. But I, my bet is it'll decline quite gradually, if you look at the history of the media business over the last 70 or so years, there's a new technology every 10 or 20 years, and in the beginning, you had movie theaters, and then along came television. And everybody thought television was going to put radio out of business, or movie theaters out of business. And there's still radio companies, and there's still a big theatrical movie business. And so these new new waves of technology, tend not to put the previous technology out of business cable channels didn't put broadcast out of business, broadcast television is actually making more money today than it did 10 years ago, 20 years ago, or 50 years ago, it's amazing. And people would have guessed 20 years ago that ABC, NBC, CBS and Fox would be out of business by now. So I think my job or the job of Jeff showing my successor is you want to manage your existing businesses as well as you can while planning for the new businesses. And therein lies the art because the new business by definition, is going to compete with the legacy business. And if you get a great show, do you put that show on NBC? Do you put it on a cable channel? Or do you put it on peacock? The streaming service? And if you put it on Peacock, the streaming service, how do you manage the pricing? How do you get that show there? How do you get a company to route for peacocks so that people aren't constantly against it? How do you use the existing ad time in your television channels to support peacock? And that's that's what we're going through right now.

David Novak 41:55

One of the great strengths you have Steve is your ability to identify talent is as this whole, you know, digital age has come upon us how has it changed your view on a really what makes a superstar talent?

Steve Burke 42:10

Well, it as it makes it harder for my job, it makes it harder to identify people who, you know, if you think about it, a lot of the people that get to senior levels in for television channels or movies are people who succeeded in in an analog world, they were good at identifying great story ideas or programming or marketing in a traditional world. And so you're you're looking for people who are passionate and curious and interested in the digital side. I think intelligence just sheer raw intelligence is more important than ever. You need people who are curious and learning but also really smart because the world is changing so quickly. And if you stand back, I think medium media businesses are a little different than some other businesses. We don't have factories. We have intellectual property, but but we don't have we don't have like Moats. Warren Buffett talks about moats around business. Our businesses don't necessarily have Moats. You know, the movie business has no moats anybody can make a movie. And, you know, there's some, some some things you need to do to distribute the movie. But by and large, you can you can get a movie distributed. So we don't have a business most. So it's incredibly people dependent. And if you think about it, if someone has a great story, they can bring that great story to Disney Warner's paramount, they can bring in that story anywhere. And so the best thing you can do, I think, inside a broadly diversified media company is make sure that you have great people who attract other great people and talent and I so I think a lot about culture and how we're treating people and how we deal with creative talent and how we deal with each other. And then you overlay all of that all that complexity. And the people that that work in the entertainment business are tend to be very smart, sometimes sensitive, sometimes. I mean, think of what it takes to bare your soul in front of America as an actor or a news anchor. You know, they're very interesting personalities. And managing all that is is difficult. On the people you

David Novak 44:24

have to manage. I mean, every business has people with, you know, big egos, and you need an ego to a certain extent just to have the competence to perform. But some would say that the business that you're in is loaded with the big ego. How have you dealt with the the big egos in the entertainment industry?

Steve Burke 44:42

Well, I think what you try to do, what we've tried to do is make sure that our executives don't have big egos and there are executives don't run around saying it's all about me, or I'm indispensable or you know, I did this and did that and we have a philosophy that we call symphony, which is I don't like the word synergy, I think synergy has become almost a, you know, an NBA, you know, catchphrase, we call our effort of working together symphony. And one of the advantages our company has for someone with a good idea is if you bring a movie to us, and we think it's a great movie, we will make sure that it gets supported on USA sci fi II entertainment in the Olympics. And when we identify the priorities, and we go to our executives, is non negotiable, everybody's going to get behind these big events. And what we found is we have 22% of all television viewing in America, when we get behind promoting a new theme park ride, or the Olympics or a new movie, it works. And one of the interesting side benefits of the symphony program, it was a message, a cultural message to everybody in the company that no individual businesses important, more important than the company as a whole. And teams do better than individual performers. And I think one of the ways that you, you get really creative people to work with you and for you and bring you great ideas is is if they feel like what you're going to be doing is going to be about their idea, not about you. So I'm very much on the watch for people inside our company who get too carried away with themselves. And forget the reason why we're here which is bringing great ideas to America and people around you. You mentioned the Olympics. I got to ask you, what was it like when you won the bid for the Olympics? Well, that story that's gotta be. It was scary as hell because NBC had been known as the company that brings you to the Olympics for many, many years and the person most identified with the Olympics, Dick Ebersol had left the company a month before we made the formal bid and found out whether we got it or not. And the thought definitely occurred to me that we would be the guys who came and Dick Ebersol left and we didn't get the Olympics. And so we flew over to Lowe's in and we decided the best way to show the International Olympic Committee how much the Olympics meant to us was to bring 20 of our people who had been associated with the Olympics during the last 20 or so years. And each person when they identified themselves and came to their part of the presentation would say their name, and then how many Olympics they'd been associated with. So Molly, Solomon would say my name is Molly Solomon. This is a I've been associated with ADA Olympics and flood Woods had been associated with 12. We brought Bob Costas face to the Olympics. And our whole goal was to try to show just how important the Olympics were. And we ended up we ended up being the high bidder. So we outbid Disney ESPN, and we outbid Fox. But we ended up getting the Olympics for eight years. And then after the first Olympics, second Olympics, on our watch associated Olympics, we announced that we were extending all the way to 2032. Which was a big bet, but a bet we were so glad we took and I was in on a plane when the when the news came out in the United States that we had gotten the Olympics, but I heard that people inside 30 Rock, you could hear people cheering from their offices, when they found out that we got the bid. But the flip side of that is, if had we lost it, we would have been the guys that lost the most important property for NBC just

David Novak 48:28

listening to you talk, you really seem to put a real focus on the importance of finding that breakthrough, and then just putting everything you can behind it. Did anybody teach you that? Or is that just something you picked up over time?

Steve Burke 48:41

You know, I think a lot of that's in the DNA of NBC Sports in this particular example, but you know, these are these are inherently changing, and in some ways, risky businesses, if you run the movie business, the way the movie business was run 20 or 30 years ago, and you don't have a point of view as to what types of movies are working and how to build a portfolio of movies over a course of a year, you're not going to do well. And so I think you you it's interesting, you have to, you have to be willing to embrace new things, you have to be a good risk manager. You don't want to do 10 $250 million tentpole movies in a year, you know, and have eight of them not work and then you have the worst year in the history of the company. So you have to be aware of risk, but you have to be willing to take risks, otherwise you will fail. It's interesting. I used to say this about NBC. There was a time when NBC was trying to cost cut its way into profitability. And in these businesses, it's like a Major League Baseball team if you own a major league baseball team, it may not be the greatest business in the world, but you know that you you're not going to do anything by saving money and putting a minor league team on the field. Your only chance is to have a great team and out perform everybody else. You get to the World Series and make some real money. And that's the same way television and movies are you got to play the game, you got to go forward and be willing to take those risks and try to make sure that you have the best people making those creative decisions. You have the best creative people. You have great marketing. Steve, you,

David Novak 50:18

you've worked with two of the world's most famous leaders. You're on the board of Berkshire Hathaway. And you've seen Warren Buffett up close and personal. What would be the number one thing you've learned from Warren Buffett?

Steve Burke 50:31

Well, Warren, everybody says what a great investor Warren is. And he is that obviously, he's Warren Buffett. But he's, he's remarkable with people. He has a very high IQ, but he probably has an EQ as high as IQ. And he's very insightful about people and about what may makes people tick and who's a great executive. And he has the ability to identify people in businesses, the likes of which I've never seen before, but

David Novak 51:05

And how about Jamie Dimon, the Chairman and CEO of JPMorgan Chase, you know, you talked about it, you you go way back all the way to Harvard, you told that story earlier.

Steve Burke 51:15

Well, Jamie is, you know, he might be the best financial services executive of all time. And I don't say that lightly. And he's the whole package. He's obviously very smart and very driven and very insightful. But he's, he's a great leader with tremendous courage. And by courage, I mean, if he sees a problem, if there's a fire, he runs in the room and tries to deal with the fire, you know, and I've watched him for decades, he hasn't lost a step. You know, he's, and you, you were on the JPMorgan board, you saw it, it's, it's inspiring, and he gets upset about stamping out bureaucracy and waste. And he's constantly worried about stuff. And I'm sure you remember, as I feel like it was yesterday when we went through the financial crisis, and the government basically came to JP Morgan and said, You need to buy Bear Stearns, which ended up happening and the reason why JP Morgan was in a position in my opinion, the reason why JP Morgan was in a position to to help out the country and stand up and buy Bear Stearns was Jamie Dimon. Because Jamie was in his job long enough before the financial crisis to get JPMorgan Chase out of some of the things that took down other firms and into things that were safer and, and more sound. And that's just Jamie, he's, he's amazing.

David Novak 52:35

What three bits of advice would you give to aspiring leaders, you had to boil it down to three things?

Steve Burke 52:40

Well, one is I think, the higher you go, the more important it is you surround yourself with great people. And if you think about it, when you first start your career, you might actually be the one doing the marketing campaign or writing the script, the higher you go, the more important it is that you delegate and decentralize, that would be the first thing. Second thing is, I think making sure that you have a culture where you reward the right things. And a lot of times people reward people who tell them what they want to hear, or people who, you know, manipulate financial results are something else. But organizations are remarkably sensitive. I think about what gets rewarded and what doesn't get rewarded. And then I think, you know, I said it before, my one of my favorite phrases is think like an owner, not a renter, it's very easy to say, Well, I'm only going to be in this job for a while or you know, that's a really uncomfortable thing to go do. And maybe if I sweep it under the rug, or don't deal with it, two years from now, some other poor guy is going to have to deal with it. But the people you really want to identify are the people come in and say we've got a problem here, and I'm going to fix it. And I realize it's going to be difficult and unpleasant and risky, but I'm going to be the one who's going to fix it. And, you know,

David Novak 54:01

Steve, one of the things that I admired about you is this very high profile. But, you know, Matt Lauer incident you know, once you dug into the facts saw what was going on within 24 hours you made a very, very tough call and here's a with a guy who's literally you know, he's You could say he's the backbone of the show the key to the profitability. How do you get the backbone to make a decision like that when when so much money theoretically is on

Steve Burke 54:29

the line? You know, that was that one was a pretty straightforward one. And it's interesting after it was over, someone said to me, the people inside the Today Show said we think we're going to fall to number two or or a week number two, and it could mean $50 million dollars a year and profits or whatever. And that that I actually never thought about that. You know, what I thought about was NBC News really stands for something and as always stood for something, you know, you go back to pre Tom Brokaw ads, you know, the, to me NBC News has always been a special brand. And what I thought about is, what, 10 years 20 years after I'm gone, if there's somebody deciding between careers, will a 25 year old want to come to NBC News? Will it will it? Will it be the kind of place where they would feel comfortable and feel feel like it stood for something? So to me, once you once you get all that it was pretty, pretty simple. And I, you know, I'm very fortunate because Brian would never second guess, obviously, I told him what we're going to do, and has never second guessed any of those tough decisions. And then, you know, I think at the end of career, at the end of the period of time and a job, people look at those big decisions and look at what you decided to do. And it's interesting, I sometimes when I've been in big decisions, I've called people like Jamie and Warren, and almost to a person they say whatever you do, decide quickly, and make it very clear why you decided what you did, and make the decision and then move on. And so I think that's good advice. I think companies get in trouble when they have a crisis, and they don't deal with it. Or they they deal with it too slowly. Or they outsource the dealing with it. You know, they get advisors to tell them what to do. And the reality is if you're the CEO, every once in a while, you're gonna have a tough situation and you're paid to deal with it. I want

David Novak 56:27

to have a little fun here with a lightning round of questions and responses here. So you ready for this? Okay, the three words that best describe you.

Steve Burke 56:37

Responsible? passionate,

David Novak 56:42

loyal, your favorite movie. Jurassic World favorite TV show? This is us. Your favorite universal, right? Harry Potter, your biggest pet peeve?

Steve Burke 56:55

People who are dishonest with the facts of their business?

David Novak 57:00

And if you could trade places with one person for a day, who would it be and why?

Steve Burke 57:06

Other than you? I would have to pick somebody very young, maybe Evan Spiegel at snap. He's very young and is running a great, interesting company

David Novak 57:15

and share a random fact about you that most people wouldn't know.

Steve Burke 57:19

When I applied to Harvard Business School. I also applied the same year to Harvard Divinity School, and I was accepted. I did not go.

David Novak 57:28

You know, Steve, you have incredible wife Gretchen, and you've got five wonderful kids. How seeing them grow up influenced your business. Thank you. And you talked earlier about how you and Gretchen went to that first Disney Store, how have you brought your your family into your business and and balanced your life, you're known for being able to do it all

Steve Burke 57:48

was your you're a real family, man yourself. But you know, it helps when the businesses you're in are fun. You know, my kids like to go to Saturday Night Live occasionally. And we go to our theme parks. And you know, there's a lot of fun parts about being associated with this job. But I've always been people say this, but I really believe it. I don't think your job is the most important thing in your life. I think at the end of the day, your family is much more important than your job. And I will take a call from any my five kids and I get many, many calls. When they have a problem or they're disappointed or they they need advice. I'll take that call before any call I get from anybody inside the company. And they know that and I think you know they've always been they've always been interested in what I was doing. They were very upset when I left. You're a Disney. They were young kids then because I would bring them into the park when it was closed. They were like why would anybody ever leave this job? We need our dad to keep running a theme park. But I've been blessed. You know, I love my wife and I love my kids. And you know anybody who says their job is the most important thing in their life is probably making a mistake, in my opinion.

David Novak 59:01

Well, Steve, I started out by talking about how much I admire you after hearing this story with and I've learned a few things that I didn't know I admire you even more. You're an incredible leader. And congratulations on a fabulous career. And I know it's not over yet. You're gonna just keep plowing away every day. But the best is yet to come for you, Steve. Well, thank

Steve Burke 59:22

you, David. It means a lot. I respect you enormously. It means a lot coming from you.

David Novak 59:26

Thanks. Appreciate it.

Well, I think you can tell it's really obvious that Steve is a stand up guy. He loves to work with his teams to solve problems. He draws out their ideas and then he trusts them to execute. Boy, that's a great coach right there. So this week as a part of your weekly personal development plan. I want you to really embrace that same mentality. Ask yourself, where could my organization can benefit from fresh thinking, how can I draw out my team's creativity and wisdom? Who knows? You might uncover an idea as big as Disney Stores. Or you know, maybe you'll simply find a solution to a problem that's been around for years. But either way, you're going to show your team that you value their ideas, and that's going to mean a ton. So do you want to know how leaders lead? What we learned today is the great leaders draw out their team's wisdom. Thanks again for tuning in to another episode of how leaders lead where every Thursday you get to listen in while I interview some of the very best leaders in the world, I'm making a point to give you something simple on each episode that you can apply to your business so that you will become the best leader that you can be

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