Ive seen books that got terrible reviews that have gone on to sell very well. They review relatively few books. Thats the hard part. It matters greatly to the author come and the New York Times can only review so many books. They are limited by the number of pages in the book review and are so many, i know they have to say no to a lot of books that they wish they had the room to cover. And then you know, that always puts them in our position. Host i promise that wasnt set up, but maybe it was. Booktv went to the New York Times and we did a profile interview with pamela paul who was the editor of the new times book review section, and heres just a little bit of what she had to say. Do publishers want their books reviewed in the New York Times speak with yes but not if its negative. I guess, very much so. Unfortunately, we are the last remaining freestanding book review newspaper book review in the country. So the Washington Post book world before the San Francisco chronicle sold at their freestanding section. So that i think gives the section a lot more importance at least in the newspaper world but also in the online world as well. There are a huge number of places that are reading books from bloggers get people posting michael reviews on twitter. But i think that there are very few places that are doing it the way we do it with that kind of thoroughness and authority aspect that was pamela paul, we taped that interview this week in new york and that full interview will air on saturday june 6 at 7 30 p. M. , about an hour long profile of pamela paul and the New York Times book review. Well we all live still at the Javits Convention center in new york city. At bookcon. This is an open to the public book fair following book picks their and weve been talking to do publishers, jamie raab president and publisher of Grand Central publishing, and susan weinberg, Senior Vice President , Group Publisher of perseus. We thank you both for being on tv. Hardcovers from new york continues. Up next is a panel that was taped at the publishers convention. Its on innovation and data and the world of Digital Technology and some of the disruptions in the Publishing Industry today. Afterwards we would be back live with Pulitzer Prize winner chris hedges and chess champion and putin critic garry kasparov. To more live cullins today from new york city, but heres a panel on innovation. [inaudible conversations] [inaudible conversations] i am joanna stone herman cofounder and ceo of librify. I want to introduce you to our keynote panel. Today were going to be talking about data and innovation. Would start with a little hole of the audience. To here has a smart phone raise your hand. It is an absurd question. You would expect every hand in this audience to go up. As i see i expect many of you are holding your smart phone because you are ready to take pictures of our panelists and try to record their brilliance and send it to your social network for you may be ready to check your email if i get a little boring. You have it out. What is amazing to think about is ten years ago there wouldnt and yet now all the books that fit in this massive Jacob Javits CenterConvention Hall can also fit right ear on this boat device. As you are sitting here reading one of those books, reading an article, posting to facebook, sending an email or just sitting here, it is capturing data, data about who you are data about what you like to read what services you like to use and companies are using that data. They are using that data to figure out how to make those Services Better for you to improve the services, create new products and services for new needs out there. Our first speaker today, Scott Galloway, take that day and uses it to predict where the broader technology and Media Industry is headed. He is going to start with a presentation which he talked about who are the winners and losers of this landscape. Then come back for a panel discussion. We are going to talk about data and innovation and how it relates to our industry. What we can expect to see, what lessons we can learn and what the future holds. It is my pleasure to introduce Scott Galloway, founder and chairman. Scott founded it after developing an algorithm to talk about digital competence of this is a professor of nyu school of business where he teaches the strategy of digital marketing. In 2012 scott was named one of the 50 best Business School professors. He is also the founder of red on the low and profit brand strategies. Scott was elected to the World EconomicForum Global Leaders of tomorrow and served on the board with a bower of the New York Times, gave way, berkeleys school of business. Scott is widely recognized as a leader on technology, marketing and digital landscape and we are thrilled to have him here today. [applause] thanks, appreciate you having me. I have 90 slides in 900 seconds so lets light this candle. Talk a little about an algorithm, we applied a 50 dated points, four dimensions of the brand, digital marketing, mobil land social. We do this across 11 geographies around the world, 1250 brands and we sit down with a brand and tell from where they are strong or weak relative to the competitive side. A lot of benchmarking but we have modernday air Traffic Controllers where we can see patterns and predict who is winning and whos losing and when we see winning and losing the mean gaining or leaking influence in the eco system. We affectionately call this talk the four horseman. We take a look at four incredible Companies Apple amazon, facebook and google and say who will gain or decline influence . Any of them could lose because anyone could decline influence for the next 20 years and be hugely important but looking through the lens of the audit a route where brands are investing or divesting is the answer to the larger Technology Landscape and how you might think about allocating your own flight capital in terms of where you think the world is headed. Lets kick it off. Huge companies have combined market cap. This data is a little dated, 1. 6 trillion equal to gdp of south korea, spain or australia. If you were to create a society with these companies you would have something that looks like the b. C. Him out of the matt damon movie. This year, when america wakes up to the fact that google, amazon, facebook and google are the biggest tax avoiders in the world offering 20,000 to store their eggs and offer battery eternity benefits, there and municipal Transportation Health benefits, dna testing, effectively economically through lobbyists they have achieved what the south was unable to do militarily, he effectively seceded from the u. S. And i think theres going to be a revolt against the. They decided they opted out of our tax and government system as they feel they can do it better on their own. So lets talk about amazon. We think amazon will decline in influence. That is why i was invited. I one of the few who believes that. Why is that . We dont believe pure play mono channel, retail works for anybody including amazon. The best example of this is 250 million in sales, raise money, billion dollar valuation at the end of 2013, 14 months later sold for scrap, declined 98. 5 in market capitalization. And i dont know how many of you use a fantastic Consumer Value proposition, giving you 100 of value for 80 bucks. Is great for everyone except shareholders. It cant work. The new Ecommerce Stores accessing cheap capital the consumer always wins. A great website great retail or great retail over the digital connected tissue between stores great web site and the consumer the answer is no. 3. I argue theres not a Single Company that is going to survive. We fail slowly over ten years. Pure play ecommerce does not work. For all the excitement and hype once the media falls out of love with magnetic founders and capital rise of these companies will be sold or go out of business. So they are opening stores. The number one most successful retailers in the history of business, apple in terms of economics number 2, parker just have tiffany, now opening stores. Retailers are not be funneled waiting to get disrupted by amazon. These are retailers additional brick and mortar retailers who grew Online Business faster than amazon this year. If you thought of innovation and stock reaching you would not think amazon has been the best return to shareholders, it hasnt. Macys outperformed over the past five for ten years. Has has nordstrom. Where it is amazon trying to establish competitive advantage . They made a multibilliondollar investment, trying to get 50 of americans between two to four hours. It is an extraordinary investment. They have tremendous ip around one click ordering. We believe the achilles heel in the amazon deal is the less investment. And shipping costs last year took in 3 billion and that is growing 40 year. That is not sustainable even for amazon. The last mile is too expensive for amazon with the current solution. When you look innovation in the payment space near catching up to one quick in things like apple pay giving us the opportunity, and we think that will erode their advantage. More often anything the Disruptive Force for amazon will give other retailers a solution for a fraction of the Capital Investment when i see hoover, it came to be in florida, i forgot my beach chair, and came back and was 4, gave my grocery list to the organic market, 12 bucks, we affectively at the post Office Without unions for collective bargaining, without uniforms and they buy their own trucks, becoming a vascular system to the business world. A private car service, the last solution for every retailer entity billions of dollars to create that solution. If you are visiting from out of town, take a taxi. They are going to die, they are the driving debt. This is the ratio of taxes tos in 2014, this is change in los angeles, miami, atlanta. Ready for this . Taxes are dying. They are going to go away. They make no sense. They offer Worst Service but are more expensive. The rise of the biggest trend in retail globally is we didnt realize consumers left the order to pick up and score. The biggest mistake including amazon is they opted for speed over convenience the consumer would rather go to fifth avenue and pick up their order when they want as opposed to getting home and finding out the listed on their door within an hour of ordering and they werent home. Convenience over speed, that is what stores offer even in france, not thought of as an innovative economy, 3,000 pick publications versus a year earlier. The future looked like me sees more than amazon. Closing a lot of Stores Opening new ones where they can justify reinvesting capital and fulfillment technology. It is a larger metaphor for what is happening in the economy. We are losing a lot of jobs to government, a typical middleclass jobs. You get into the information economy you have the right skills and never been a better time to be an american. If your anybody else it never is going to worst, there has never been a worse time, most of the job growth is the service jobs are basically 350 million serving 7 million lords in the u. S. We are turning into the middle class is going the way and theres a decent argument the middleclass the free market economy basically rewards the most productive people to an unbelievable extent at this is playing out in the labor markets. The ultimate destroyer of jobs, Technology Creates jobs, it doesnt. It destroys jobs. Google needs, and people for every 10 million in revenue, they need 50 or 60. Amazon needs 12 people, macys need 65. For every 10 million these Companies Growing revenue you will lose 40 to 50 middleclass jobs, they will grow 30 to 40 billion a year so you can take the meadowlands, Madison Square garden the rose bowl, pasadena, copywriters retailers, and give them a pink slip and say courtesy of amazon, google, facebook and apple, you are now out of business. Some predictions. Amazon will decline in value. It will be forced to make the transformative brick and mortar acquisition. I dont think theyre going out of business. They will be an enormous retail. They will buy gas station companies, we are used to driving in and out of gas stations and picking up stuff, the perfect Consumer Behavior compliment amazon, going into that place and picking it up and stopping for ecommerce companies. Lets talk about facebook. Facebook has redefined what it means to have a relationship or be a friend. It be defined the semantics of relationships. They also pull out the greatest data switch in history, they convince brands to spend tens of millions of dollars to build communities and put a Walled Garden around these communities in sages king you have to pay. It is 6 meaning one in 16 messages they send to their community actually reach them. Facebook sales represent assumed the organic reached is zero and forcing everybody to pay to access the communities they can pay the bill. I say that in a respectful way. It is the bait and switch. There probably the smartest supplier of companies in the country. Instagram, remember he sold that company. It is worth 40 billion. If you look at what it is, it is strong everywhere facebook is week. Facebook is the most Successful Company in shares of relationships in the history of business. Facebook is losing teams the instagram owned by facebook. The most Popular Social Network wealthy teens, you never hear any individuals and we are not interested in will be teens, theyre the future of business, most Popular Network is instagram. If you look it engagement rates by the percentage of community on a piece of content, by the community, it is the most powerful platform in the world. Some of the losers interest will be blown off the map the moment instagram announces pages where you can be your phone is you see piece of the interest to go to less than the one billion dollars. I wish was a public stock. It broke my heart, but the product, Image Management team going away. Twitter is oversheight and fantastic opportunity to shorten my view. Social media traffic actually converting to purchase, very low. Social commerce is an enormous head fake and twitter has been over. There are more advertisers on linkedin the and twitter. The last 7 years, tumbler, instagram, the last five years tom was purchased for more and instagram will be 1. 5 billion, Marissa Meyer never mentions tumblers in their earnings fall. Theres a quiet war between facebook and google and that is key to the war on line, to attach your identity to your specific actions so the company can sell more specific higher price dads to advertisers. Facebook is winning the war. We decided it is okay for facebook to attach actions to identity. We are not comfortable with people attaching our searches to our identity. We would rather people not know what we put in that box and attach it to an identity. That would make me uncomfortable. Crazy stuff goes in that box. As a result the only way google can attach identity is for g mail and google plus which the have the same attraction. Facebook was winning the war of identity. I want to have some customer content from here. In the board of the New York Times, the first Board Meeting of this in recommended a shot off google, they are the enemy of all Media Companies. They quoted information that wants to be free but they fought intention should be sold to the highest bidder and a lot of Media Companies were totally blind sighted in the enamored with the cool kid who decided to be part of the pepsi generation to let google called a data and we debased content to slice it up and sell to the highest bidder when we got a bunch of cheap meaningless traffic. You would have thought we would have learned from this mistake. Theyre doing it twice with facebook, publishing on the platform in exchange for 100 of revenues of people dont leave the platform. Theyre doing it again, expediting their own demise. They want to be scarce and expensive. That is the future of great media and these have taken it for the second time. And they pulled the trigger again. What a stupid move. Facebook, 1 billion step identified catholics in the world, 2. 4 billion people have a relationship with facebook, the most successful product, religion, nation in the history of mankind. Sales facebook associates should go Something Like this. And twitter, tumbler or anything else a lot of awards, when you are interested in building a brand globally and i have more relationships and gone and i am on a mobile phone. We think google will decline in value, dominant share but new places to searches, there are a billion search query they on facebook 3 billion on google a billion on facebook. The cost per click is going down. Revenue and profits have stalled. Google didnt see the ship to the mobile economy happening as fast as they did. 80 of our time on mobile in apps and in air when we are less likely to search. We are moving away from