Coronavirus Updates: SoCal Tech Joins Forces for Hospitals; Elon Musk's Threat to Leave California
Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.
Today:
- Elon Musk's tweet storm catches the attention of Treasury Secretary Steven Mnuchin
- How L.A. Startups Are Collaborating to Get Aid To Local Hospitals
How L.A. Startups Are Collaborating to Get Aid To Local Hospitals
Rachel Uranga
Jiake Liu is the founder of a startup outdoor furniture company, but lately he feels like he's running a second company — one that's helping supply local hospitals with thousands of protective masks and, in the process, rallying Los Angeles' tech community.
Liu started SoCal Tech for Hospitals in early March with the goal of raising $60,000 to purchase 30,000 masks for hospitals facing shortages. He's now helped raise nearly $200,000, delivered 50,000 hospital-grade masks and is looking to up the ante with the region's vast tech community to do good beyond the pandemic.
Over the past months, he's enrolled some of the most well-known startups in town to pitch in for the logistical effort of distributing the masks. After the workday ends, Liu jumps on the phone with other founders to orchestrate the effort.
Elon Musk's tweet storm catches the attention of Treasury Secretary Steven Mnuchin
upload.wikimedia.org
Elon Musk's Twitter rant over the weekend that he wants to move Tesla and SpaceX out of California so he can resume production prompted some notable responses.
California Assemblywoman Lorena Gonzalez (D) responded to the post by tweeting "F*ck Elon Musk." And on Monday morning, the billionaire entrepreneur got some support from Washington. Treasury Secretary Steven Mnuchin told CNBC that he agrees with Musk, calling him "one of the biggest employers and manufacturers in California, and California should prioritize doing whatever they need to do to solve health issues so that he can open quickly and safely."
Musk has been a vocal critic of lockdown measures in California, which he has called "de facto house arrest." He threatened to move his companies to Nevada or Texas on Saturday after an Alameda County Health officer said she wants Tesla's Freemont factory to remain closed for the time being as the state slowly reopens manufacturing sites. The tweet storm came just a few days after Musk vowed to sell all of his homes and most of his belongings in an effort to obtain what he called "freedom."
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Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.
- With internships cancelled, Valence tries to fill the void for young black professionals
- Florida is poised to open Disney World and SeaWorld. Will California be far behind?
- Snap and LAUSD promotes reading during COVID, with an assist from celebs like Alicia Keys
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With internships cancelled, Valence tries to fill the void for young black professionals
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNTkwMi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYwNTczNTE4M30.YVDJESMmCRibfFoEY82y4HiQci38rzJH1RKsJGlw_aE/image.png?width=980" id="7f574" class="rm-shortcode" data-rm-shortcode-id="f541a00e8d17de6d806235c23444c2f4" data-rm-shortcode-name="rebelmouse-image" /><p>Across the country aspiring young students have had their summer internships cancelled because of the pandemic, crushing dreams and muddying professional paths. It's been especially hard for communities of color, where some are the first in the family to go to college or where internships provide an entrance into a professional world.</p><p>Valence Enterprises Inc., a Santa Monica-based company that's developed a sort of LinkedIn for black professionals, is trying to offset the pain calling on their network of leaders and professionals to provide career advice. Their network of 7,000 individuals can talk on everything from Hollywood to venture capital to marketing. Indeed, the legion of young professionals seeking it will need that hand as they enter a world forever changed by the pandemic.</p><p>Many are already facing devastating family loss - as the coronavirus kills African Americans at three times that of white families. And job loss is concentrated in low-wage sectors where Black and Latino workers are seeing high unemployment. </p><p>The very wealth gap that Valence seeks to lessen is only <a href="https://www.weforum.org/agenda/2020/05/pandemics-poor-rich-economics-coronavirus-covid19/" target="_blank">expected to widen after the pandemic</a>. </p><p>Dubbing their efforts the "Boost Challenge," Valence is asking their network of more than 7,000 professionals to provide 30 minute one-on-one coaching sessions. "This is a chance to be coached by some really inspiring people that you otherwise wouldn't have direct access to," said Emily Slade, co-founder of Valence.</p><p>So far, they have gotten a buy in from the former chief marketing officer of Beats By Dre, and founder of Opus, Omar Johnson, to offer branding advice; Olympic medalist Michael Johnson will give partnership and sponsorship advice; and Boris Kodjoe, who founded the Full Circle Festival and is an actor and model, will offer his thoughts on the entertainment industry. Other participants include the chief marketing officer of Snap, Kenny Michell; Maisha C. Leek, a partner at Human Ventures; Derek Ali, a Grammy Award-winning mixing engineer; and Caroline Wang, chief culture, diversity and inclusion officer at Target Corp.</p><p>"As a tech platform and professional network focused on connecting the Black community with mentorship, job opportunities and capital,<a href="http://www.valence.community/" target="_blank"> Valence</a> is in a unique position to provide some support," said Kobie Fuller, the co-founder and a general partner at Upfront Venture. Valence has previously partnered with historically black colleges and universities, where students are reeling from the impacts of the pandemic.</p><p>An online survey by HBCUvc found among students at historically black colleges 62% lost their job due to COVID-19. The sample survey of 137 students by the nonprofit aimed at increasing opportunity in venture capital and technology also showed that among those 75% held a job while at school. </p>Florida is poised to open Disney World and SeaWorld. Will California be far behind?
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4ODI2OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMDkzNDcyNH0.-nX2hvzltOpH8ieuOf_ohBoNJM-JbXhshLlK4D1FW8M/img.jpg?width=980" id="d0ee6" class="rm-shortcode" data-rm-shortcode-id="79ab04e2418b271f2628e2786013b354" data-rm-shortcode-name="rebelmouse-image" /><p>Walt Disney World wants to reopen in weeks after the Orlando amusement park was shuttered as the pandemic spread, and the company's multi-tiered proposal might be a blueprint to how the Magic Kingdom will open the front gates of its Anaheim park. Other Florida parks are also unveiling proposals to do the same, which must be approved by Gov. Ron DeSantis. </p><p>Disney plans a tiered reopening, with Disney World and Animal Kingdom opening on July 11, then Epcot and Hollywood Studios on July 15.SeaWorld wants to open on June 11. And Universal Orlando presented its plan to reopen on June 5. That plan also has been approved by the Orlando task force, which sent its recommendation to the governor. "We are developing a series of 'know before you go' communication vehicles and our objective is to reinforce our health and safety messages to guests before they arrive on our property so they are aware and prepared for the new environment," Disney's senior vice president of operations, Jim McPhee, <a href="https://www.latimes.com/business/story/2020-05-27/walt-disney-world-park-reopening" target="_blank">told the task force.</a></p><p>Will the same re-opening plan soon be unveiled for California's version of the theme parks? <a href="https://www.latimes.com/california/story/2020-05-27/silicon-valley-health-officer-slams-faster-pace-of-california-coronavirus-reopening" target="_blank">The Los Angeles Times reported</a> that a key architect of the nation's first coronavirus shelter-in-place order is criticizing the state's <a href="https://www.latimes.com/california/story/2020-05-26/los-angeles-county-reopens-with-new-state-guidelines-while-city-allows-in-store-shopping" target="_blank">increasingly fast pace</a> of lifting stay-at-home restrictions. Dr. Sara Cody, health officer for Santa Clara County — home to Silicon Valley and Northern California's most populous county — said she was concerned by the decision to allow gatherings of up to 100 people for <a href="https://covid19.ca.gov/pdf/guidance-places-of-worship.pdf" target="_blank">religious</a>, political and cultural reasons.</p>Snap and LAUSD promotes reading during COVID, with an assist from celebs like Alicia Keys
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjY1NzUwMC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5OTAxNDQ3N30.Ff-fzCnRnQLbhIXn1cyzX0YwGUwp8YwNWrif-9njEE4/img.jpg?width=980" id="34bce" class="rm-shortcode" data-rm-shortcode-id="8bec468dda80a988ea00bd5388f3aa67" data-rm-shortcode-name="rebelmouse-image" />c1.staticflickr.com<p>Snapchat and L.A. Unified School District are partnering to keep high school students reading books while the coronavirus pandemic keeps them from the classroom. On Wednesday, Snap launched a new original series titled <em>The A-List Book Club </em>on its Discover platform, which houses Snap-curated content for its young-skewing audience. The new series will showcase celebrities discussing a favorite book and what it means to them. </p><p>Participating celebrities, who will shoot the footage themselves, include Russell Westbrook, Alicia Keys, and Kendall Jenner. At the end of each episode, LAUSD students can swipe up to be directed to L.A. Unified's website, where they can enter their student credentials to receive a free digital copy of the book. Book donations are supported by L.A. Students Most In Need, a charity created to support students during this challenging time. </p><p>The series will also air on LAUSD's YouTube channel, as well as on Snapchat nationwide, but without the swipe up option. "Education creates opportunity, and we are excited to support public education and help create new ways to engage students in learning outside the structure of a classroom," said Evan Spiegel, Snap's co-founder and CEO. "We are inspired by working together with Los Angeles Unified to create resources for students to help them build the foundation for future success."</p>From Your Site Articles
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Armed With a Fresh $15M Raise, Fernish Plans Expansion as America Redecorates Under Quarantine
May 27 2020
Americans locked out of the workplace have been remaking their home offices by adding desks, plants and wall hangings. Some of it so that they look a little more slick on Zoom calls.
The new interest in a beautiful home office has been a boon to furniture services like Fernish, which sells itself as an affordable option to upscaling your home. The rental service recently closed on a $15 million Series A led by Kosla Ventures, alongside other top investors including Scott Cook (founder of Intuit), Eytan Elbaz (founder of Scopely), and Jeff Wilke (Amazon's CEO of Worldwide Consumer), and Spencer Rascoff (founder of Zillow and dot.LA).
<p>Armed with the new infusion of cash, Fernish Chief Executive Michael Barlow is looking to expand their reach beyond their service area of Los Angeles and Seattle metro. "We're literally spending 100% of our days in our home. People are taking stock of what it looks like."</p><p>Orders for home offices furnishings at Fernish surged 300% over the past two months, and May is tracking to be its best month for new signups since the Los Angeles company's founding in 2017. Fernish truly broke out a year later after joining L.A. accelerator <a href="https://www.techstars.com/accelerators/los-angeles" target="_blank">TechStars</a>, and raised $30 million in January 2019.</p><p>"Because you are on Zoom calls all day," Barlow said of many professionals, "you definitely want to have a nice decor set out there whether it be wall hangings, new lighting or otherwise."</p><p>Fernish, along with a growing list of venture-backed furniture rental companies including New York-based Feather and CasaOne from the Bay Area, pitch themselves as the antidote for young urbanites sharing apartments or setting up their first place to live. Adulting.</p><p class="shortcode-media shortcode-media-youtube">
<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="f5ba267a8b99102adbd3e4f8b54982cf"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/92gyyoLn2Fs?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Fernish Customer Spotlight: Liz</small>
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<a href="https://www.youtube.com/watch?v=92gyyoLn2Fs" target="_blank">www.youtube.com</a></small>
</p><p>They may want nice furniture but don't want to invest up front or schlep it to the next city they might live in. These startups give commitment-free options while promising to be more eco-friendly than disposable furniture. </p><p>Barlow was in part inspired to build the company with his co-founder Lucas Dickey when he was trying to convince his girlfriend to move to Los Angeles from the East Coast. Moving was expensive and he wanted to eliminate that, plus a lot of furniture becomes disposable.</p><p>The company has also pitched itself as part of the circular economy, as second hand and used items have become more digestible to the eco-conscious consumer. "Fast Furniture is out," reads one of the taglines on Fernish's website, tapping into the dueling consumer desire to do good and buy. "Tastes change, lifestyles evolve and we demand different things from our home over time," it goes on. "With Fernish you can refresh your style with high quality furniture that's built to last."</p><p>Fernish offers mid-century and modern furniture, partnering with CB2 and Crate & Barrel. Prices range from a $79 month for a mid-century meridian blue sectional worth $1,895 to $13 a month for desk with a Walnut top valued at $299. The company also offers a lease-to-own program. </p><p>The model is nothing new. For years, the rent-to-own industry has gotten a bad name as shady companies targeted poor people who couldn't afford big payments to buy furniture. But Fernish and other companies have upscaled the service by targeting professional millennials and Generation Z, who don't necessarily want to be stuck with expensive furniture or may not want added waste. </p><p>More than half of its customers came to the company before or after a move. The majority view furniture as a disposable asset. And it's finding new customers through one of its investors, Real Estate Tech Ventures, which counts apartment owners among its clients. </p><p>But will the success continue once the pandemic ends? Direct-to-consumer services like Amazon and furniture Wayfair have seen sales jump, even as they face logistical challenges.</p><p>Barlow is convinced the company is working within a larger trend toward a service economy that built up Uber and Lyft and spawned a legion of food delivery apps and fashion rental services that offer short-term access to high end products like clothes (Rent the Runway, LeTote). </p><p>He's not the only one. Others that have done well during the pandemic like mobile software provider Tapcart, think the forced move online will <a href="https://dot.la/search/?q=and+tapcart" target="_blank">permanently shift consumer behavior</a> as traditional retailers struggle to recover. Consumers have become more and more willing to pay for convenience.</p><p class="shortcode-media shortcode-media-rebelmouse-image image-crop-16x9">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNTQwOC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzMjE3MjYyMH0.SzgBZm7teDJq7Vxt2y6KeJYJ0mV62UKyyJGyXv176rY/image.jpg?width=1245&coordinates=0%2C416%2C0%2C384&height=700" id="4383a" class="rm-shortcode" data-rm-shortcode-id="e664e6d488301e99e62fc613126048d9" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-caption" placeholder="Add Photo Caption...">Co-founder Lucas Dickey (L) and Chief Executive Michael Barlow (R) of Fernish</small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Photo courtesy of Fernish</small></p><p>"While the quality of the product is still important, the point of differentiation between brands is now often dependent on their ability to market the service (and) delivery," said a report from Deloitte on the future of retail that was published before the pandemic took root in the U.S. "Premium charges are already a regular aspect of meal and grocery delivery services."<br/></p><p>Furniture can be a capital-intensive business and the company has invested heavily in a proprietary system that helps it streamline supply management and complicated reverse logistics that it employs to retake possession of furniture and refurbish it. Dickey said the company sees its investments in their technology akin to that of Amazon's investment in Amazon Web Service, which offers company software service for companies and individuals. </p><p>"No one does merchandising and upselling or operations better than Amazon, so we're trying to follow in their footsteps," Barlow said. "Should we have 1% of their success, we would be very happy."</p><p><em>dot.LA co-founder Spencer Rascoff has a non-controlling investment in Fernish. Please read our <a href="https://dot.la/editorial-independence-2645130492.html" target="_blank">Editorial Independence pledge</a> for more information.</em> </p>
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HBO Max, the new streaming service from AT&T's WarnerMedia, launches Wednesday. Advertised as the place "where HBO meets so much more", HBO Max will debut with over 10,000 hours of content from a range of brands including HBO, Warner Bros., Cartoon Network and Turner, with characters as diverse as Elmo and Tony Soprano. This marks a culminating milestone in AT&T's massive integration that began in 2016 when it agreed to acquire Time Warner for $85.4 billion.
<p>Widely viewed as both a streaming offering for content-hungry viewers, and as a value-add for AT&T's customers, HBO Max will hope to effectively absorb the 30 million or so current HBO customers into its initial subscriber count. Despite the head start, and the track records of a century-old studio and TV's most prestigious channel, industry onlookers have highlighted several challenges facing the new service.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNDE0MC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTU5OTg1NTA2NH0.Vkun6ahQA-FWExb8lRInSten7T9VtuxNYctE25g3zg4/image.png?width=980" id="bf9c0" class="rm-shortcode" data-rm-shortcode-id="7a619d150377d30cb6a0d5d5e81fee21" data-rm-shortcode-name="rebelmouse-image" />
<small class="image-media media-caption" placeholder="Add Photo Caption...">HBO Max launches with over 10,000 titles across a range of content brands</small></p><p>One is its price. At $15 per month, HBO Max will cost more than any of its competitors in the video streaming space. That takes on greater weight given the number of competitors, including Netflix, Disney+, Amazon Prime Video, and NBCU's Peacock – all of which charge less than HBO Max. Then there is the fear of brand dilution. To build upon the plateauing HBO subscriber base, HBO Max is staking out a competitive position built upon a broad mix of content ranging from upscale HBO films and series to more middlebrow fare like Big Bang Theory. </p><p>dot.LA caught up with two HBO Max leaders to learn about the key decisions leading to today and to explore the path ahead. Tony Goncalves oversees HBO Max's product, performance marketing, and data & analytics. Reporting to chairman Bob Greenblatt, Goncalves also runs Otter Media, a WarnerMedia subsidiary that houses several digital content companies. Goncalves spearheaded AT&T's acquisition of Time Warner and formerly led DirecTV's expansion into mobile content. Sarah Lyons, senior vice president of HBO Max's product experience, provided additional comment.<br/></p><p><strong>dot.LA: To stand out in this competitive space, it obviously helps to have good content, good data, and a good user experience. But what can you do if everyone else has those, too?</strong><br/></p><p><strong>Goncalves:</strong> I think it's a misnomer that we're all competing to be the one platform that consumers go to. A variety of us are going to offer these platforms and consumers will have more than one. These new "super-networks" are emerging, in the form of an app that aggregates lots of content, and you stand out by what stories you're aggregating, and how you're curating and presenting them. The data tells us that consumers have 2-3 services today and are willing to pay for up to 4-6 — so our goal is to be one of those 4-6.</p>
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzMyNDE0Mi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0MzIxMjg3MX0.OL5lH_Nx_6c3VmRnMmzxs1FvKNJU27oVSDclQRWehL8/image.png?width=980" id="c2503" class="rm-shortcode" data-rm-shortcode-id="d543cb28f2246f86f37242d48b8bfe3c" data-rm-shortcode-name="rebelmouse-image" />
HBO Max users will be able to browse by "hub"
<p><strong>Lyons</strong>: We looked at research into consumer sentiment and saw that consumers value the experience just as much as they do the content. There's a common problem among customers with finding something to watch, because there's a sea of content out there. They're not quite confident that when they start a new show, it will be time well spent. We talked to them about that and learned on average it takes about nine minutes to find something to watch — and that 20% of them abandon it altogether because they get frustrated and give up. When we asked about recommendation engines, they started to kind of recoil; they had a visceral reaction. They'd say, 'How could a robot purport to know who I am or what I want?' They felt boxed in. So we kept all of that in mind as we were creating the product experience, and we felt like we had an opportunity to create a sweet spot with a service that blends the human touch in curation with underlying data for personalization.</p><p><strong>Goncalves</strong>: We believe the opportunity is to present consumers a clean, clutterless experience and get away from that endless scroll by giving consumers the confidence that when they press on a tile, they'll be taken into a great story — which is not necessarily the case in the marketplace today. That's a real opportunity for differentiation.</p><p><strong>In developing your launch slate of content, how did you decide how much original content you needed, how much catalog content you needed, and what kind of each?</strong></p><p><strong>Goncalves: </strong>If there were a formula, I'd be happy to walk you through that. But the reality is we had to </p>
<p>step back and define what we wanted to be when we grew up. We started with this incredibly valuable anchor of HBO. We were extremely fortunate that the service had garnered over 30 million paying subscribers over the years, but it had essentially peaked. So we started with the demographic we had — higher-income households, a bit more male — then morphed our programming to grow around that.</p><p><strong>Lyons</strong>: The conundrum was how do you take those existing users and give them a new experience while keeping them comfortable, and at the same time target a new set of subscribers that are millennials, Gen Z, families, females, kids of all ages. How do you add them and keep the experience fresh and add all the content that goes along with it, yet keep it premium while not alienating subscribers? It was all a balance. </p><p><strong>How do you approach the role of original versus licensed content?</strong></p><p><strong>Goncalves</strong>: You tend to see in the data that originals are the titles that drive people to subscribe, whereas the licensed content is what garners the engagement thereafter and keeps consumers on these platforms.</p><p><strong>There's some concern that customers may be confused about the various HBO options – HBO, HBO Go, HBO Now, HBO Max — and, on top of that, people may be unclear about what they're entitled to based on their current HBO situation. AT&T is still negotiating with Comcast, as well as Amazon and Roku – which together control nearly 70% of the streaming device market – but as of today there are no agreements to bring HBO Max to those users. To what extent are you hopeful about resolving those negotiations?</strong></p><p><strong>Goncalves</strong>: I can't get into specifics of the negotiations themselves. But as we go forward, we want to bring everything together. We need to work with our distribution partners in order to do that, and I think you'll see that come to life, where we do come together and align on objectives. You'll see a lot of HBO Now apps turning into HBO Max apps overnight. As far as the folks that we're not aligned with, our hope and expectation is that we'll continue working with them and in the days and weeks to come, we'll come to an agreement. But the consumer has other options.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
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<small class="image-media media-caption" placeholder="Add Photo Caption...">Tony Goncalves oversees HBO Max and is also CEO of Otter Media</small></p><p><strong>In the sprint to launch, you had teams collaborating remotely across Los Angeles, Seattle, New York and Atlanta. How were they able to work together and meet the launch date target?</strong> </p><p><strong>Goncalves</strong>: I wish you could see the big smile on my face right now. This could've turned out bad. We were uncomfortable two and a half months ago, until we saw these folks rally. We became proficient in Slack and in video calls. The tech teams in particular became proficient at coding at home, doing quality checks of the apps from home and doing quality control left and right — we had to put devices in people's homes and be really flexible. Then you look at the marketing team that had a marketing plan ready to go, anchored on things like March Madness, and all of a sudden those went away. But you saw a team showing up with a sense of purpose and working remotely and getting comfortable with needing to change the way they were operating and I think we're the better for it. I'm really, really proud of what we've done here and I think this pivot is something that I'm most proud of. </p><p><strong>Speaking of pivoting, you've been involved in a lot of big, future-oriented business decisions. What have you learned about navigating a business transformation on a scale like this?</strong></p><p><strong>Goncalves</strong>: Business transformation at scale, in any business, is really, really tough. I think the only way that businesses succeed is if they have a clear definition of a goal – the beacon – and then a path to get there. It became really clear (for AT&T) that as a core connectivity company, being purely a pipe wasn't the path that the company needed to go. The question then became what value-add was needed to put on top of that. Video happens to be the most trafficked content over the network, so I think the clarity of the fact that the network and content needed to come together has really helped this company put a beacon out there as to what it ultimately needs to be. The hardest part is bringing the hundreds and thousands of employees along for the ride and getting them committed, and I think we've done that by articulating this marriage of content and connectivity.</p><p><strong>You've been either in L.A. or traveling to L.A. for much of your career. How have you seen it evolve over the years as a business and tech hub?</strong> </p><p><strong>Goncalves</strong>: If you just look at Playa Vista, and what it was and what it is, that alone gives you the answer, when you have a variety of more tech-oriented companies anchoring in and around Playa and Culver. I think it's fascinating, because the primary reason that that happens is talent acquisition. All these companies need talent, so these hubs tend to emerge out of the need for talent and that's what I've seen pop in L.A. A funny anecdote: I was doing a lot of traveling back and forth earlier in my career at DirecTV and I was looking to potentially buy a condo or house. I looked in Playa and I scratched my head as to why anybody would pay $500k for a place there. But today if you can find one apartment even for sale at anything under three-times that, you'd be lucky.</p><p class="shortcode-media shortcode-media-youtube">
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<small class="image-media media-caption" placeholder="Add Photo Caption...">HBO Max vs. HBO Go vs. HBO Now | Explainer Video</small>
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