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00:00THIS IS SOMETHING YOU KNOW A THING OR TWO ABOUT. TAPPING HERE AS AN INVESTOR FIRST, GIVEN EVERYTHING TO HAVE SEEN, EVERYTHING YOU HAVE TRIED TO DO, WHAT INDUSTRIES DO YOU SEE NOW THAT ARE MOST RIPE FOR DISRUPTION? HARI: WHETHER IT IS -- JEFFREY: WHETHER IT IS RIPE FOR DISRUPTION OR NOT, THE PLACE OF OPPORTUNITY THAT WE ARE FOCUSED ON CONTINUES TO BE ON CYBERSECURITY, BOTH FOR ENTERPRISE AND THE CONSUMER. I THINK IT WILL FACE LESS HEADWINDS AND A DOWN RECESSION ECONOMY THAN MANY INDUSTRY. ALSO THINK THE FUTURE OF WORK CONTINUES TO BE A PLACE OF GREAT OPPORTUNITY, THE DISRUPTION OUT OF COVID HAS BEEN EXTREME IN TERMS OF THE WORKFORCE, AND THE TOOLS IT NEEDS TODAY IN TERMS OF PRODUCTIVITY, COLLABORATING, SHARING, THE MOVING OF INFORMATION AND PEOPLE IS GOING TO BE A PLACE OF TREMENDOUS INNOVATION OVER THESE NEXT COUPLE YEARS. THERE ARE BRIGHT SPOTS BUT WE ARE IN FOR CHOPPY TIMES. EMILY: HARI, THERE ' S A HUGE NUMBER OF CYBERSECURITY UNICORNS OUT THERE, ESPECIALLY COMPANIES WITH VALUATIONS WHEN TIMES WERE GOOD. HOW DO YOU THINK AURA STANDS OUT ON THAT LIST? HARI: THIS IS MY SECOND GO AROUND BUILDING A BUSINESS. THE FIRST TIME, WE WENT THROUGH THE DOWNSIDE IN 2000, 2001 AND AGAIN IN 2008 AND WE LEARNED A LOT OF LESSONS. THIS TIME, WE ARE FOCUSED ON KEEPING THE COST OF OUR BUSINESS LOW, LOOKING FOR OPPORTUNITIES WHERE THERE ' S AVAILABILITY, WHETHER IT IS M & A, ORGANIC, ETC. KEEPING THE CORE OF OUR BUSINESS TIGHT AND MAKING SURE THAT WE ARE MINDFUL OF COSTS AND HAVING RAISED A LOT OF CAPITAL, WE ARE SET UP -- WELL SET UP. WE HAVE TO MAKE SURE WE ARE CREATING A LOT OF RUNWAY AND KEEP FOCUSING ON OUR PRODUCT. JEFFREY: AURA IS A MATURE COMPANY. IT IS A PROFITABLE BUSINESS. AND A FAIR AMOUNT OF WIND IN ITS SALES IN TERMS OF ITS GROWTH. IT IS PROFITABLE GROWTH. THAT MAKES IT IN A UNIQUE CATEGORY RIGHT NOW. EMILY: GIVEN THAT YOU HAVE SEEN A NUMBER OF DOWNTURNS, HOW PRONOUNCED DO YOU THINK THIS ONE IN PARTICULAR IS GOING TO BE IF IT IS A RECESSION WITH A BIG R OR A LITTLE R, IS IT INEVITABLE? JEFFREY: YOU JUST WENT WAY ABOVE MY PAY GRADE. I HAVE TO SAY, AND THIS IS WHAT I ADMIRE ABOUT HARI AND HOW HE IS RUNNING HIS BUSINESS, YOU PLAN FOR THE WORST AND HOPE FOR THE BEST. HE HAS PUTTING DOWN HIS BUSINESS , HE IS RUNNING IT ON A SMART BASIS, A PROFITABLE BASIS. THIS IS ALSO A TIME OF GREAT OPPORTUNITY. THERE ARE GOING TO BE THINGS FOR US TO DO WHETHER IT IS IN M & A, DIRECT TO CONSUMER, THE AD MARKET IS PROBABLY GOING TO BECOME MORE FAVORABLE. YOU HAVE TO PLAY OFFENSE AND DEFENSE AT THE SAME TIME. YOU NEED AN OFFENSE OF TEAM AT A DEFENSIVE TEAM AND THAT IS WHAT HAIR -- HAIR AS -- HARI HAS BUILT WELL. EMILY: THE PROMISE OF CYBERSECURITY IS THE ABILITY TO PLAY GOOD DEFENSE AND WE HAVE BEEN WARNED ABOUT THE THREAT FORM RUSSIA -- THREAT FROM RUSSIA. HOW BIG ARE THE THREATS ON THE CYBER LANDSCAPE AND HOW DO YOU SEE THAT THREAT EVOLVING AS WE GO THROUGH THIS POTENTIALLY PRONOUNCED ECONOMIC CRISIS WAS 6, 18 MONTHS OR LONGER? HARI: I THINK IT STARTED WITH COVID AS PEOPLE REMOVING WERE ONLINE, MORE DATA STARTED MOVING ONLINE AS WELL. WHETHER YOU ARE LOOKING AT NATIONSTATE THE NATIONSTATE ATTACKS OR ATTACKS ON ENTERPRISES, THE THING WE SEE IS SOME OF THOSE WERE PREVALENT, THEY ARE GETTING MORE SOPHISTICATED, BUT THE NEW THING WE ARE SENATORS HE IS AN ACCELERATION IN THE PARTICIPATION OF ATTACKS ON FAMILIES AND CONSUMERS. GOING FROM NATION TO NATION TO ENTERPRISE AND CONSUMERS AND FAMILIES. I THINK THAT OVER THE NEXT 12 TO 18 MONTHS, THE TREND DOES NOT SEEM TO BE SLOWING DOWN. THERE IS A NEW VARIANT OF A DIFFERENT KIND OF ATTACK HAPPENING EVERY WEEK. CRIMINALS SEEM TO BE ENJOYING THEIR WORK. JEFFREY: IN THE LAST 12 MONTHS, THE AMOUNT OF THEFTS, DIGITAL THEFTS, VERSUS BURGLARY HAS ACTUALLY SURPASSED IT. THERE ' S ACTUALLY MORE CRIMINAL ACTIVITY AGAINST ALL OF US AS CONSUMERS ON OUR DIGITAL FOOTPRINT THAN IN OUR HOMES AND APARTMENTS AND AROUND OUR PHYSICAL GOODS AND THAT TREND IS ACCELERATING. THAT VALUE RIGHT NOW IN TERMS OF WHAT AURA IS SOLVING FOR IS STRONG AT ALL BE GOING TO GET STRONGER. EMILY: I HAVE TO ASK, GIVEN WHAT WE SAW WITH QUIBI AND YOUR HISTORY IN THE ENTERTAINMENT BUSINESS, WHAT IS YOUR THOUGHT ON THE COLLAPSE OF NETFLIX STOCK? JEFFREY: CAN I CONGRATULATE YOU -- IT TOOK YOU 8.5 MINUTES TO SAY THE BRETT GORVY OUT LOUD. THANK YOU. -- TO SAY THE WORD QUIBI A LOT. THANK YOU. EMILY: IT IS NOT THE ONLY THING YOU ARE GOING TO BE REMEMBERED FOR IF I HAVE ANYTHING TO SAY ABOUT IT. I DO WANT TO KNOW WHAT YOU ARE THINKING ABOUT WHAT IS HAPPENING IN STREAMING, THE COLLAPSE OF NETFLIX ' S STOCK. IS IT ALL DOWNHILL FROM HERE? JEFFREY: NO. HERE ' S WHAT I WOULD SAY. SURELY ONE OF THE GREAT ENTREPRENEURS OF OUR TIME IS REED HASTINGS. EVERYBODY WERE NAYSAYERS A DECADE AGO WHEN HE CAME ALONG WITH THIS IDEA OF STREAMING. THEY WERE NAYSAYERS WHEN HE CAME ALONG WITH THIS IDEA FOR BINGING OF CONTENT. THERE ' S SO MANY THINGS THAT POPULAR OPINION WERE CONTRARY TO HIM AND HIS VISION FOR THAT COMPANY. HE BUILT A GREAT COMPANY, THERE ' S NO QUESTION THAT IT IS IN A ROUGH PATCH FOR SURE, BUT THE LAST THING I WOULD DO TODAY IS BET ON REED HASTINGS BEING DOWN AND OUT. DO I THINK -- WHAT IS THE FUTURE OF STREAMING? THE FUTURE OF STREAMING IS GOING TO BE STRONG, LIKELY MORE CONSOLIDATION. SO THERE ' S MORE COMPETITION TODAY, THERE ' S MORE OFFERINGS TODAY, MORE THAN ALL OF US CAN CONSUME. THERE ARE GOING TO BE WINNERS AND LOSERS. I THINK NETFLIX IS GOING TO BE IN THE WINTER COLUMN. IS IT GOING TO SEE $700 A SHARE SOON? PROBABLY NOT. EMILY: I WONDER IF YOU THINK DISNEY AND SCO ARE IN THE WINTER COLUMN. THERE ' S A LONG HISTORY THERE. WE HAVE SEEN SOME TUMULT IN THE EXECUTIVE SUITE. WHAT DOES SUCCESSION LOOK LIKE THERE AND HOW DOES DISNEY FIT INTO THIS FUTURE OF THE ENTERTAINMENT BUSINESS? JEFFREY: 100 WILL BE IN THE WIN COLUMN. IF YOU HAD TO PICK TODAY, APPLE, AMAZON, NETFLIX, DISNEY, WARNER DISCOVERY, THEY ARE GOING TO IN SOME FASHION, SHAPE, OR FORM BE IN THE WIN COLUMN. JACEK HAS A COMPLICATED HAND TO PLAY, PROBABLY NO COMPANY HAD MORE OF ITS BUSINESSES ADVERSELY AFFECTED BY COVID. BROADWAY SHUT DOWN, THEATER SHUTDOWN, THEME PARKS SHUTDOWN, CRUISE SHIPS SHUTDOWN. HE IS TRYING TO NAVIGATE THE

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Katzenberg on Disrupting Legacy Industries, Streaming

WndrCo Founding Partner Jeffrey Katzenberg and Aura Founder & CEO Hari Ravichandran join Emily Chang from the Collision conference in Toronto to share what it takes to disrupt legacy industries, the rise of the cyber security industry, and the future of streaming. (Source: Bloomberg)

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