“I ultimately made the decision “The world that it would be more fun to wants us be a disruptor than to tell them that to defend myself the sky is falling. from disruption.” IT’s NOT.” – Le s L i e Mo o n v e s –Pe t e r Ch e r n i n aac e e s i ” – L “ . BEYO TECH NOL WELCOME NDDI OGY SRUP is the best ally democracy can have.” disruption and UNCERTAINTY good way to do it: embrace “There’s only one TION –Ad r i A n A Ci s n e r o s A Report on the AND PLEASE JOIN US INTERNATIONAL for the next International COUNCIL SUMMIT Council Summit September 14, 15, 16, 2011 April 26, 2012 Los Angeles Madrid, Spain CONTENTS A STEP BEYOND DISRUPTION 3 | A STEP BEYOND DISRUPTION he 2011 gathering of The Paley Center for Me- Tumblr feeds, and other helpful info. In addi- dia’s International Council marked the first time tion, we livestreamed the event on our Web site, 4 | A FORMULA FOR SUCCESS: EMBRacE DISRUPTION in its sixteen-year history that we convened in reaching viewers in over 140 countries. Los Angeles, at our beautiful home in Beverly To view archived streams of the sessions, visit 8 | SNAPSHOTS FROM THE COCKTAIL PaRTY AT THE PaLEY CENTER Hills. There, we assembled a group of the most the IC 2011 video gallery on our Web site at http:// influential thinkers in the global media and en- www.paleycenter.org/ic-2011-la-livestream. TH 10 | SNAPSHOTS FROM DINNER AT 20 CENTURY FOX tertainment space for a candid give-and-take on We are grateful to all of our speakers (in order of the state of the industry. appearance): Disney’s Anne Sweeney, Participant 12 | SNAPSHOTS FROM BREAKfasT AT THE PaLEY CENTER The summit’s theme—Beyond Disruption— Media’s Jim Berk, Edelman’s Gail Becker, McKin- came up repeatedly in our conversations, reflect- sey & Company’s Geoffrey Sands, O’Melveny & 13 | CREATE WHAT’S NEXT Christie Hefner, Kay Koplovitz ing an understanding that change is not only a Myers’s Joe Calabrese, IAC’s Barry Diller, CBS’s crucial driver of the business: it is inevitable. The Leslie Moonves, Netflix’s Ted Sarandos, Grupo 13 | LETTING GO challenge is to seize and capitalize on the new pos- Cisneros’s Adriana Cisneros, Grupo PRISA’s Juan T sibilities driven by technology and innovation. Luis Cebrián, Univision’s Isaac Lee, Nielsen’s Su- 15 | SOCIALLY CONscIOUS AND COMMERCIALLY VIABLE Given our location, we started off with the view san Whiting, PwC’s Marcel Fenez, Youku.com’s from Hollywood and then we turned our focus to Victor Koo, The Chernin Group’s Peter Chernin, | 16 KING OF DISRUPTION emerging markets, with spotlight sessions on Asia Google’s Marissa Mayer, NBCUniversal’s Lauren and the Middle East, and a special focus on Latin Zalaznick, Bluefin Labs’ Deb Roy, and Facebook’s | STICK WITH THE FUNDAMENTALS 18 America and the growing Hispanic media audi- Sheryl Sandberg. We were lucky to have a very 20 | OUTRUNNING THE PIRATES ence. We closed the conference with a decided knowledgeable cast of moderators for these ses- Joe Calabrese focus on digital innovation and media entrepre- sions, including News Corp’.s Jon Miller, Media 21 | THE HISPANIC DEcaDE neurship, including a session dubbed the “Next Big reDEF’s Jason Hirschhorn, UBS’s Aryeh Bourkoff, Thing,” in which we featured presentations from a author and journalist Lorea Canales, Simulmedia’s 23 | CONTENT IS KING, BUT DISTRIBUTION IS KING KONG truly international line-up of media startups. A re- Dave Morgan, and UCLA’s Judy Olian. curring feature of the IC summits since our 2009 In addition we would like to express our thanks 24 | WE ARE [ALMOST] ALL DIGITAL NOW gathering in New York, the Next Big Thing has to the principal sponsors of the International since grown into a regular programming series Council: Edelman, Gustave M. and Rita E. Haus- 26 | AFGHAN STARS: PROGRAMMING CHANGE IN THE MIDDLE EasT that brings emerging entrepreneurs together with er, Nielsen, O’Melveny & Myers LLP, Pricewater- our select audience of media industry leaders. houseCoopers LLP, UBS, and to our knowledge 27 | CHINA’S DIGITAL REVOLUTION Between sessions, our delegates and speakers partners, McKinsey & Company. We look forward Stanley S. Shuman, Blair Westlake from around the world were able to continue the to seeing you again at the next IC summit. 29 | GLObaL: THE NEW LOcaL conversation at our social events, including a con- cert on the Paley Center rooftop from three-time All best wishes, 30 | MOBILIZING DISRUPTION Grammy Award-winning ensemble Ozomatli. And for our gala dinner, a bit of Hollywood glam- Frank A. Bennack, Jr. | FOCUS GROUPS IN THE WILD our with an outdoor reception amid the storied 31 Chairman, The Paley Center for Media sound stages of the 20th Century Fox studio lot. 32 | THE NEXT BIG THING For the first time, we offered an elegant mo- bile app complete with agenda and bios, content Pat Mitchell 34 | THE ROAD TO ENGAGEMENT from our sponsors and partners, our Twitter and President and CEO, The Paley Center for Media Mayor Antonio Villaraigosa All photos by Kevin Parry Photography 2 | INTERNATIONAL COUNCIL 2011 LOS ANGELES 3 | THE PALEY CENTER FOR MEDIA duced several points of consensus: Barry Diller had observed that “net neutrality A FORMULA FOR SUCCESS: • That disruption is an inescapable fact of 21st is on the side of the angels; it has to happen,” century media life. it did happen: The FCC finally published its of- • That success will depend upon embracing, ficial rules defining and determining what net EMBRacE not resisting, disruption. neutrality would be. (And the anticipated court • That the current phase of disruption is nearer the challenges followed almost immediately). start of its cycle than the end. The setting for the International Council’s This view was repeated again and again: first Los Angeles event was one of sheerest “This is just the beginning.” And what is likely California elegance. Guests at the Paley Cen- DISRUPTION to lie beyond disruption? More disruption. ter’s gleaming Richard Meier-designed build- BY CHARLES FLEMING ing could take a walk through a gallery of Hol- Land of Creativity and Diversity lywood memorabilia, which included a display Held in The Paley Center for Media’s Beverly of shimmering costume gowns and set props he theme of the power-packed colloquium book’s Sheryl Sandberg, and Google’s Marissa “NET Hills location (supported by sponsors Edel- from the private collection of Debbie Reynolds. was “Beyond Disruption.” Eminent figures Mayer. Also in attendance were authoritative man, Gustave M. Delegates were also NEUTRALITY IS from the overlapping global media, commu- international voices from emerging markets: and Rita E. Hauser, treated to a dinner ON THE SI D E OF nications, and technology industries attended Adriana Cisneros, Juan Luis Cebrián, and Nielsen, O’Melveny on the Twentieth THE ANGELS The Paley Center for Media’s eighteenth Inter- Isaac Lee gave their perspective on the world’s ; & Myers, Pricewa- Century Fox studio national Council summit in September 2011, Spanish-speaking regions; Tom Freston and IT HAS TO terhouseCoopers, lot and a private held for the first Saad Mohseni dis- HAPPEN .” and UBS—and rooftop concert time in Beverly cussed Afghanistan –BARRY DILLER,IAC streamed via Lives- by Ozomatli, the Hills. With old me- and the expanding tream) the event, Grammy Award dia models break- Middle East scene; as if demonstrat- winning Los An- ing down, and the and Youku.com’s ing the pertinence geles ensemble lines between con- Victor Koo illumi- of its theme, was whose eclectic, Razmig Hovaghimian TDISRUPTION IS tent creation and nated the online punctuated by dra- Latin-influenced AN INESCAPABLE content delivery video market in matic news events. tones reflect both FACT OF blu r r i ng — e ve n China and Asia. As the conference began, Netflix’s stock took a the cultural heritage and the artistic spirit of 21ST CENTURY disappearing—the Presided over by steep dive in response to its attempt to divide their hometown. question preoc- the Paley Center’s its DVD delivery and Internet streaming busi- But the conference’s message was all business. ME D IA LIFE. Pat Mitchell, Mayor Antonio Villaraigosa, Frank A. Bennack, Jr. cupying attendees President and CEO nesses. One day before joining Pat Mitchell for Los Angeles is the second largest media market was: what next? Pat Mitchell and a conversation on the future of social media, Fa- in the US, Los Angeles Mayor Antonio Villarai- The meeting of media minds was impres- its Chairman Frank A. Bennack, Jr., keynote cebook’s Sandberg was on Nightline announcing gosa said in remarks opening the conference, sive. From the more traditional end of the speakers, panelists, and industry experts ex- her company’s new program for job creation in and “the creative capital of America,” in some business were film and television notables changed theories, put forward strategies, and America. Just as panelists were talking about the ways representative (in relative miniature) of such as Barry Diller, Leslie Moonves, Peter outlined analyses with the goal of advancing possibilities of an inexpensive iPad-style tablet the new globalized industry. The city is the sec- Chernin, and Anne Sweeney. And repre- the new business ecosystem. And, despite their in places like China, Indonesia, and India, the ond-largest population center for thirty-seven senting the newer media school of emerging disparate backgrounds, experiences, and ex- Indian government was preparing to unveil its different nationalities—the second largest technologies: Netflix’s Ted Sarandos, Face- pectations, their three-day conversation pro- $30 iPad-style tablet.