>> Narrator: Live from Las Vegas, it's the Cube, Covering NAB 2017, brought to you by HGST. >> Welcome back to the NAB show. Lisa Martin here with Jeff Frick, we have had an amazing Day One. Wrapping up the end of a really informative day, Jeff. I don't know about you, but the, just the theme of the NAB Conference this year being that the M.E.T. effect is >> Right, right. >> convergence of media, entertainment, technology, and so many different types of technology, was really very exciting, so much innovation going on. So much opportunity. And we've talked to a variety of guests today from those who are involved in film and broadcast and lots of different sectors, to sports broadcasting and really just a very, very exciting... I feel like we're at this tipping point of what's going to happen next. >> Right, right. The themes that we see over and over continue. All about democratization of data, all about using data to make your decisions, even within storytelling you want to use data. And there is data that will correlate to certain types of success and not success. A really interesting conversation around how do you build a movie trailer and what percentage of the trailer has the star in it or not, depending on the star, and on who you're targeting with that particular trailer, the answer to that question is different. So, it's a lot of interest. How a cloud is democratized, all this horsepower that's now available to basically anyone if they can scramble up the budget, they can apply the same kind of massive compute power to rendering and other processes as what was exclusive to just the biggest shops before. So it's just interesting how it continues to be the same themes over and over, and it's impacting this media and entertainment industry in the same ways it's impacting travel and healthcare, transportation, IT, everything else. >> Exactly. We talked about before, the data-driven decisions and as we look at streaming services like Netflix, they've got the advantage of knowing everything, and I think we talked about this in the open this morning, everything about us. One of the things that I learned today was they have that advantage, but one of the things they couldn't do until they started creating their own content was change content. You look at the film industry and filmmakers and writers who have historically, it's been a very qualitative intuition-based process, where now they've got data at their power that they can extract more value from and make data-driven decisions. And we're seeing, to your point, across industries that kind of bringing in artificial intelligence, machine learning, leveraging data science to help make decisions that can help really level the playing field for, like you said, some of the big studios that have the money for real-time cloud rendering or had it a while ago, to now some of the smaller ones that can do that and achieve similar economies of scale that they wouldn't have been able to do on their own. >> Right. The other big trend that we see over and over, Lisa, is this idea that before data wasn't always considered an asset. That might be hard for people to fathom that are kind of recent to this world where of course data's an asset. No, data was a liability. It was expensive. I think in one of your interviews, they didn't keep dailies, because dailies were expensive. They didn't keep this stuff. What's interesting in the context of film, if a particular film becomes really important piece of work, you want to treasure it, you want to keep it. You know, we had Sundance on, talking about archiving all this fantastic material, artwork, cinema, whatever you want to call it. So the fact now that in this industry too, because storage is less expensive, but more importantly, they see the value of the data exceeds the cost of storing it, now they just want more storage, more storage, more storage. 'Cause you don't want to delete anything, and of course, it's all generated digitally today in this industry. >> Right, that's a great point that you brought up, where we were talking with the VP of Marketing at HGST, who was talking with one of the major studios, they filmed this scene that was beautifully shot for I think it was a couple hundred extras in the scene, looked back and thought, you know, we should have filmed that for virtual reality. And because they didn't save the dailies previously, they had to recreate the entire thing. So to your point of looking at the value of data, it's now also, you're right, the economies of storage are going down and there's a lot of technologies, flash, hybrid, that are really enabling it to be readily available. But it's also, this data that's now valuable, is creating new opportunities. It's generating new revenue streams. It's something that companies like a Netflix or even broadcast television can utilize to find different ways of providing relevant content to their viewers. >> Right, right. As you said, things to learn. I learned today that, you know, there are so many versions of a particular media asset that are created, for sensitivities that are around a particular country, obviously now for virtual reality, for all types of different playback mechanisms, so they need to keep everything and create many permutations of everything. So again data makes possible, absolutely. And there's a whole 'nother round coming, right, which is all around the analysis of the frame in the video to get the better metadata. And that's just a whole 'nother rash of improvement that's coming down the line. We heard a number of people today talk about all the metadata and how important the metadata is to capture along the process. But it's going to get even deeper in terms of the analysis of the frame level for these pictures, exposing that out, to other kind of machine learning algorithms, sterch, etc., so that it becomes an even better world for the consumer to find, consume and share that which is of interest to them. >> Absolutely. One of the things that I find interesting is how much content is being created by people that probably don't really realize they're creating the content. Everyone's connected. We talked about we had the independent security evaluator, Ted Harrington, on the program today, who was talking about security, not just in the context of media and entertainment, but the fact that it's a very relevant issue. We know it as an issue in lots of other industries. He was actually saying that it is, the media and entertainment industry is actually pretty good, where security, cyber-security is concerned, securing connected devices, where it seems to me that they could be potentially sharing some best practices with some of the other industries that might still think of security as a nice to have. >> Right, right, no. We saw it with Sony, they got hacked earlier, I guess it's been years now, time flies. So security is very important but obviously the hacking of dvds back in the day, which was a big deal. But now it's all digital and you know the windows to make money on these for the big releases, at the big moment, is relatively short. It's a super competitive business. So, security is definitely a very big issue. It's exciting. The other thing that's kind of interesting is the democratization of the power of all these tools. The thing that scares me a little bit, Lisa, and I see this in a lot of big budget movies, is sometimes I think the tech gets in the way of the storytelling. And I think it's a crutch to lean on cool special effects and cool stuff, and forget about you have to tell a story to make it interesting. And if you don't tell a story, it's not. And we talked on one of the interviews today, about even commercials. And we've seen commercials. You know, Coke hasn't advertised "brown sugar water" for a very, very long time, it's all about the emotion of the Coca-Cola. It's about being part of a community. So to start to use actual data to drive the narratives in the commercials when you're not trying to sell a billion dollar movie, you're trying to sell an entire factory production run of a new automobile, the stakes go even higher, your touch points are even lower. So again this whole theme over and over, data driven decisions based on AI, based on measuring the right things, based on knowing your consumer better, because you have to, or else they'll just whoosh, swipe to some other piece of content. >> Exactly, exactly. Yeah I think those were the very pervasive themes that we saw here. But I think there's just tremendous opportunity. It's almost like we're at the tipping point. We had Kevin Bailey on, as well, from Atomic >> Jeff: Atomic Fiction. >> And conductor, and he was saying six years ago, when he had this hunch on cloud where to try to do rendering in real time for big movies like Dead Pool, for example, The Walk, one of my favorite movies, would take a tremendous amount of time. And he said to be able to do this with the speed that we need and the agility and flexibility, a fixed solution is not optimal. So he was really kind of leading edge in that space. And now we're seeing technology as pervasive. But you're right, there can be an overuse of it. So it's really about finding this balance. I think we had a great spectrum of guests on the show today that really showed us all of the different facets, and we've probably just scratched the surface, right? >> Oh, definitely. >> That you can look through to really understand what makes good content, emotional, what makes it successful, and what enables the audience to be in that control of this data that is democratized all over the place. >> Yeah, to get emotionally involved. There's some great lines. It's all about emotion and connecting in a hyper-competitive world for attention. It's really an attention competition these days. >> Lisa: That's a good point. >> It's much harder than it's ever been. >> It is. >> All right, well we've got two more days. >> Lisa: We do. >> So get a good night's sleep. I'll get a good night's sleep. You should get a good night's sleep. We'll be back for Day Two at NAB 2017 with Lisa Martin, I'm Jeff Frick, checking out with The Cube. We'll see you tomorrow. Thanks for watching. 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