0:00:09.070,0:00:10.169
Hello everybody.

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So, good to be here,

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and here at New World Stages,[br]not on that side but on this side,

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which is very fun.

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I want to talk to you today

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about the end of the audience[br]and the dawn of the player.

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Let me start by introducing you[br]to your new customer,

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your next generation customer.

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This is your millennial audience,

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and they are at turns brilliant[br]and also unbelievably annoying.

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It's like a really sort of shocking[br]combination of things.

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But there's a reason[br]why the millennials are this way.

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They didn't end up this way[br]just kind of out of happenstance.

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They're super easily distracted.

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It's the world we live in,

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but millennials are[br]very easily distracted.

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They've a device in their pocket,

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it's constantly buzzing,[br]and its buzzing all the time,

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whether they're at work or at play.

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They also have conquered boredom,[br]which is kind of amazing, right?

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There's no reason to be bored ever again,[br]even if you're not a Grindr user.

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(Laughter)

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They are technologically literate[br]and obsessed.

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By the age of five or six

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today's American kids[br]have used more technology,

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and understand more[br]about the Internet and tech,

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than most of us understood[br]by the age of 30 in our generation.

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It's a shocking, shocking change.

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And because they grew up

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in an environment with very few limits[br]and very little discipline,

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they love obsession.

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And "obsessed" is not just a word[br]that entered our culture recently

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on kind of a drag queen's wing[br]and a prayer,

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it's also something that legitimately[br]is part of our view of the world.

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Now we don't have discipline, we have OCD.

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Their rise has given extra momentum[br]in leverage to the nerdy anti-hero.

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We've always had nerdy anti-heroes,

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but today the hero is the nerdy anti-hero,

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and we can't get away from this idea[br]in the constructive narrative.

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The reason for all of this, my friends,[br]behind all this, is the power of games.

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Even for people who don't play games,

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the way games have influenced culture,

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the way they've changed[br]the way we think about things,

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is the reason why we end up[br]in this fun-frustrating place.

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You may ask yourself:[br]Why are games so powerful?

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Why are they so influential,[br]what do they do?

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Well, the core of it is some science[br]called intrinsic reinforcement.

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And here's how it works.

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Anytime you challenge[br]yourself to something,

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anything, no matter how big or how small,

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and you achieve that thing,

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your brain secretes a magical little bit[br]of a neurotransmitter called dopamine.

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And dopamine is[br]a very pleasurable experience.

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So,challenge, achievement, mm,[br]that feels really good.

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Now, Ian Robertson, a neuropsychologist,[br]has talked about yet another construct,

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which is called the winner effect.

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The more you do this:[br]challenge - achieve - dopamine

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you also start secreting testosterone

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in connection with the challenge -[br]achievement - dopamine loop.

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So, over time, challenge -[br]achievement - dopamine plus testosterone

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affects the way your brain is structured.

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And the net of effect[br]of that structural shift

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is that things that don't[br]give you a constant rush

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of dopamine and testosterone

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don't feel particularly fun.

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So your orientation is towards the things[br]that deliver that dopamine release:

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challenge - achievement.

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And so I posit we're[br]at a unique inflection point today

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in which all of these things[br]have come together

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to profoundly change[br]the nature of the audience,

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and change the way that we interact[br]with content of all kinds.

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Now, many people have come before you,

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especially for those who work in content[br]or the creative industries,

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and have said, "I have the answer,[br]everything you do is crap!"

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Right? The world's change,[br]everyone's changed, everything's crap.

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I'm not going to position this[br]that way at all.

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I'm going to tell you[br]things are changing,

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some of us see it, some of us don't,

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some of us are millennials,[br]some of us aren't.

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You may feel this intensely as I do[br]or you may not.

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But I want to show you[br]through a series of examples

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what people are doing,[br]how other folks have responded to it,

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and what I believe the future is

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of this very, very august institution,[br]live entertainment.

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Now, I also tell you that I think[br]we can use the power of games

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to our advantage,[br]to get where we want to go.

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And if we do that deliberately[br]instead of letting this happen to us,

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but we take an active role in this,

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that's called gamification.

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And that's using the constructs of games

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to engage people[br]and change their behavior.

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And we have the power to do this.[br]It's very exciting.

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Now, what we need[br]in order to make this happen

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are what are called the three F's:[br]Feedback, Friends and Fun.

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Any system that has[br]feedback, friends, and fun in it,

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is engaging and interesting.

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And the more of the three "F"s[br]the system has, the more effective it is.

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Let's take a look at this

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through the prism of something that some[br]of you probably consider fairly gross:

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The idea of taking pictures of everything[br]you eat before you eat it.

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And if you're my friend on Facebook -

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and I highly encourage you[br]to friend me on Facebook or Instagram -

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I promise to deluge you with[br]an unbelievable number of food photos.

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You'll get to be right there with me[br]as I eat everything.

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Okay, so some of you probably consider[br]this really gross, right?

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Like, hey, stop taking pictures[br]of the food! Eat the freaking food!

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Right, you're here with me,[br]this is our experience together,

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why are you so concerned[br]with taking pictures of your food?

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And some people have responded to[br]this whole multitasking in public spaces

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which some of you might know[br]is the don't-be-a-jerk game!

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And basically the way this game is played:

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Everyone puts their phones on the table[br]like guns in the Old West,

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and the first person[br]to reach for their phone

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has to pay for the dinner.

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Not a bad idea -

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I feel what kind of a crowd we are.[br]Right? Okay, you love this!

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So, here's the thing though,[br]here's the thing:

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As uncomfortable as all this sounds,[br]as many of us like to deride this idea,

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we're missing the elemental concept here,

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which is that today for this gamer[br]generation in the gamification world,

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the people at home[br]are part of the experience.

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They're providing a lot of feedback[br]on the live experience.

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They're clicking "Like",[br]they're clicking "Hearts",

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they're commenting.

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They're providing[br]that positive dopamine release,

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and sometimes they're more interesting[br]than you are over dinner. Okay?

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It just depends: not you, okay,[br]not you, but you!

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So sometimes they're providing[br]more positive feedback,

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and so they are part of that experience.

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And all that is really cute, right? Like:

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"Ha-ha, Jimmy won't talk[br]to me over dinner."

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What are the real business[br]effects of this?

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And let me tell you a story.

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One of the largest automakers[br]- I was working on a project -

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said to me we've a problem:

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"Teenagers don't drive[br]the way they used to.

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They don't want to anymore."

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I said, "What's it about?"

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They said, "The research[br]classic millennial stuff.

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Their care's the environment.

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They don't want to drive a car[br]or spend money on a car,

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But the number one reason

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why driving rates have fallen off a cliff[br]among American teenagers

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is because they're getting the message[br]about not texting and driving.

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so they're choosing not to drive."

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(Laughter)[br](Applause)

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Okay?

0:07:05.900,0:07:07.509
Now, It's true!

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Now, if I had told you, if you had come[br]to me five years ago,

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and you'd said, "Gabe, Instagram[br]would kill the car."

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I'd laugh you out of the room.[br]I'd say, "How's that possible?"

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But let me explain this to you.

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With this generation,[br]with our world today,

0:07:20.470,0:07:22.334
with this positive reinforcement loop

0:07:22.340,0:07:25.032
produced by that[br]dopamine - challenge - achievement,

0:07:25.039,0:07:27.039
everything is on the table.

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It doesn't matter[br]how ingrained the behavior is,

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it doesn't matter how culturally[br]significant the behavior is,

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people will follow their bliss.

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They will go where the most[br]positive reinforcement is,

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and that threatens to upend

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everything and anything[br]we know about people's behavior,

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nothing is sacrosanct.

0:07:46.890,0:07:48.925
And for people who work in an industry

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based on a very long-term view[br]of content creation,

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it might be meaningful.

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Now consider:

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How does the live performance industry[br]respond to social media?

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It's kick the person[br]out of the room, attack them,

0:08:03.140,0:08:05.366
grab them with the bouncer,[br]make fun of them.

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No way, you can't use social media,

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while you're in the middle[br]of watching a performance.

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And I think this sets up one[br]of our classic kind of conflicts

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with this generation.

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You know that in the United States[br]four-fifths of the population

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watched broadcast entertainment,[br]like a TV show,

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with the second or third screen open[br]in the last 30 days.

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We can't even sit through 22 minutes[br]of television without going crazy

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because we are so bored. Right?

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How are they supposed to sit[br]through two hours of not interacting?

0:08:36.363,0:08:39.929
So, one option is,[br]instead of fighting this trend,

0:08:39.929,0:08:44.251
let's turn and use it in kind of[br]a positive way to our advantage.

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So this is a project that I worked on,[br]I designed, called Livecube.

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It takes the social media to live event,[br]and makes it into a positive experience.

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So it focuses it.

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It uses game concept to get[br]people to compete with each other,

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to create great social media moments,[br]to promote the event that's going on,

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and so on.

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And has been very successful,[br]very effective -

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instead of fighting with it, roll with it,[br]and leverage that power

0:09:05.945,0:09:09.653
to do other things, to do great things,[br]and extend the experience.

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And here's another of the conflicts[br]we often see with live performance.

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We assume that[br]because the millennial generation,

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because this next consumer[br]likes to be the center of the action

0:09:19.329,0:09:22.181
- remember in games you're always[br]the center of the story -

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many content creators believe[br]that what this audience really want

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is to write their own story.

0:09:27.253,0:09:29.393
They want to come and decide the outcome.

0:09:29.404,0:09:31.002
And sometimes that's true, right?

0:09:31.006,0:09:34.004
We've got voting in reality television.

0:09:34.019,0:09:37.198
But in practice they want you[br]to give them the entertainment.

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They want to be part of that though,

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they'd like to be[br]more viscerally involved.

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So you've got highly successful[br]immersive entertainment.

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There's no surprise

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about why really immersive entertainment[br]at this moment is so popular.

0:09:49.759,0:09:50.879
It really works.

0:09:50.879,0:09:52.766
It allows me to be part of the story,

0:09:52.770,0:09:56.615
but you're still writing great story[br]that principally carries us through.

0:09:56.651,0:09:58.401
So, if you can't do that,

0:09:58.420,0:10:01.673
how could you use technology[br]to allow the user, the player,

0:10:01.690,0:10:03.268
to be in the center of the story?

0:10:03.298,0:10:06.150
And I think Domino's tells us[br]a great case study on this.

0:10:06.150,0:10:08.880
So, Domino's built this app[br]called Domino's Pizza Hero.

0:10:08.880,0:10:12.210
And in it you play a pizzaiolo,[br]someone who makes pizzas. Okay?

0:10:12.224,0:10:14.785
So, they teach you in the app[br]how to knead the dough,

0:10:14.791,0:10:17.463
roll the dough up, like Luigi,[br]and put some sauce on it,

0:10:17.475,0:10:19.220
and cheese and vegetables.

0:10:19.233,0:10:20.282
And flick your finger,

0:10:20.302,0:10:22.303
it's instantly baked[br]at your local Domino's

0:10:22.320,0:10:24.018
and delivered right to your door

0:10:24.033,0:10:25.081
from inside the game.

0:10:25.081,0:10:26.976
And if you're especially good at it,

0:10:26.989,0:10:29.258
Domino's will invite you[br]to apply for a job

0:10:29.273,0:10:30.372
(Laughter)

0:10:30.384,0:10:31.481
from inside the game!

0:10:33.430,0:10:38.383
Now, ha-ha-ha, but this company[br]needs to recruit 30,000 people a year -

0:10:38.389,0:10:42.726
and by the way they make a $1M a week[br]in incremental revenue from this game.

0:10:42.746,0:10:46.558
This game replaces[br]the soaring inspirational video

0:10:46.579,0:10:49.919
on how Domino's uses only the freshest[br]ingredients to make your pizza,

0:10:49.927,0:10:51.611
and watch this guy make your pizza,

0:10:51.614,0:10:54.548
and everyone is well paid[br]and happy in white. Uhm!

0:10:56.463,0:10:59.381
Now, it's an interactive experience,[br]it's visceral,

0:10:59.385,0:11:03.428
and this is an important part[br]of the difference in storytelling.

0:11:03.473,0:11:05.740
Many storytelling opportunities[br]in the theater

0:11:05.751,0:11:09.412
are about where the boundary ends[br]between the audience and the performance,

0:11:09.423,0:11:12.637
where the performance ends[br]and the rest of people's lives begin.

0:11:12.667,0:11:16.459
And with new technology we don't[br]have to end the story when the story ends.

0:11:16.474,0:11:19.470
We've got new - I'm not saying[br]you should all get Google Glass,

0:11:19.483,0:11:20.521
but just as an idea.

0:11:20.524,0:11:23.174
Some of you may have seen[br]this amazing Google Glass game

0:11:23.186,0:11:24.596
called "Zombies, Run!"

0:11:24.596,0:11:27.970
And the idea is to get you to run[br]by chasing you with zombies.

0:11:28.202,0:11:29.618
(Laughter)

0:11:30.050,0:11:33.992
But you can extend your stories and[br]your storytelling in much the same way,

0:11:33.996,0:11:35.951
whether it's with Google Glass or not,

0:11:35.958,0:11:38.810
it allows you to connect with people[br]in a different place.

0:11:38.810,0:11:42.639
And this is another piece of the core[br]value proposition in the millennials,

0:11:42.639,0:11:46.980
which is that the idea of personal[br]achievement is critical, it's primary.

0:11:46.980,0:11:50.519
How I feel about the things[br]that I do is very important,

0:11:50.519,0:11:52.431
and I want to know I'm making progress,

0:11:52.441,0:11:55.579
and I want your product or service,[br]your idea, your content,

0:11:55.579,0:11:59.710
to be part of my story of progression[br]and mastery in my life.

0:11:59.730,0:12:01.485
And this is core to gamification.

0:12:01.506,0:12:04.244
So apps like Nike Plus[br]have been hugely successful.

0:12:04.274,0:12:06.573
They are effectively loyalty programs.

0:12:06.590,0:12:08.376
This is like a loyalty program.

0:12:08.379,0:12:12.050
But it leverages my own personal drive[br]to be better and do better,

0:12:12.065,0:12:16.689
and allows you to extend[br]your content beyond where it is.

0:12:16.689,0:12:19.870
And this extension, this consumptive[br]extension, is very important,

0:12:19.870,0:12:23.199
because the millennials[br]are also on the leading edge

0:12:23.203,0:12:25.230
of this concept of binge consumption

0:12:25.230,0:12:29.342
made famous by the Portlandia[br]"Battlestar Galactica" episode. Right?

0:12:29.378,0:12:32.984
So binge consumption is the idea[br]that I should be able to decide

0:12:32.996,0:12:34.714
how much I want to consume as well.

0:12:34.726,0:12:37.424
I don't only want to consume[br]the nuggets you've given me,

0:12:37.429,0:12:39.433
if I'm really into the thing[br]you're making,

0:12:39.442,0:12:41.817
I want to consume as much of it[br]as I possibly can.

0:12:41.823,0:12:44.891
And I want to consume it[br]to the exclusion of other things.

0:12:44.924,0:12:48.551
So there's an opportunity to extend[br]the concepts that you make

0:12:48.610,0:12:50.839
even if you don't have the resources,

0:12:50.848,0:12:52.969
even if the content that you're creating

0:12:52.989,0:12:56.409
doesn't fit neatly into[br]a binge consumption model. Right?

0:12:56.431,0:13:00.386
There's an opportunity using technology[br]in gamification to extend what you create

0:13:00.415,0:13:03.540
and to come into people's lives[br]in a different way.

0:13:03.540,0:13:05.537
And one of my favorite examples of this

0:13:05.553,0:13:10.213
that also leverages an important concept[br]in gamification is Tabasco Nation.

0:13:10.282,0:13:12.282
And that concept is tribalism.

0:13:12.312,0:13:14.746
Because above everything else[br]we've talked about,

0:13:14.769,0:13:16.426
millennials care about connecting,

0:13:16.444,0:13:19.304
they care about finding[br]and being together with their tribe.

0:13:19.318,0:13:21.612
So Tabasco Nation want a way of extending

0:13:21.620,0:13:23.721
the concept of their hot sauce[br]into the world

0:13:23.737,0:13:27.231
and drive behavior among people[br]who like hot sauce to the media assertion

0:13:27.251,0:13:29.699
that if you like spicy food,[br]you're part of a tribe.

0:13:29.702,0:13:33.213
Every drop of hot sauce that you use[br]is a point that you earn.

0:13:33.217,0:13:37.023
The crazier things you do with hot sauce,[br]the more points you earn:

0:13:37.061,0:13:40.909
like putting it on a piece of cake,[br]take it to the top of the Eiffel Tower,

0:13:40.913,0:13:43.502
you know, put some[br]in your teacher's drink.

0:13:43.511,0:13:44.579
It's cool.

0:13:44.580,0:13:46.547
The more you do,[br]the more points you earn.

0:13:46.550,0:13:48.741
the more cool experiences[br]they unlock for you.

0:13:48.748,0:13:51.574
But the core value,[br]and it's a very successful campaign,

0:13:51.586,0:13:53.919
the core value is[br]that you're part of a tribe.

0:13:53.930,0:13:57.620
Just like you may be a part of a tribe[br]if you really like Sondheim musicals.

0:13:57.624,0:13:58.647
You probably are!

0:13:58.647,0:13:59.714
(Laughter)

0:13:59.714,0:14:03.644
And here's the sort of coup de grâce[br]for all of us, you guys.

0:14:03.648,0:14:05.013
Everything I've talked about

0:14:05.017,0:14:07.780
I put through the framework[br]of this millennial generation,

0:14:07.794,0:14:08.869
the next generation,

0:14:08.875,0:14:11.287
but, in fact, everything[br]that the millennials want,

0:14:11.302,0:14:13.740
be the center of the story,[br]consume more content,

0:14:13.754,0:14:15.828
feel they're making progress,

0:14:15.834,0:14:18.080
understand how your thing[br]fits into their world

0:14:18.084,0:14:19.760
and be viscerally connected to it,

0:14:19.760,0:14:21.999
that's stuff that people of all ages want.

0:14:21.999,0:14:24.364
You don't have to be 24[br]to want those things.

0:14:24.367,0:14:26.100
It just so happens, if you're 24,

0:14:26.110,0:14:29.878
because you played a bunch of games,[br]you expect those things.

0:14:29.898,0:14:32.959
But it's also true that if you're 45,[br]you still want challenging,

0:14:32.964,0:14:34.717
you still want the content you want,

0:14:34.720,0:14:38.435
you still want to feel connected[br]to the story and be able to do more.

0:14:38.448,0:14:39.802
It shouldn't surprise you,

0:14:39.827,0:14:43.790
the single biggest game playing[br]demographic in the world is women over 40.

0:14:43.790,0:14:45.213
It's true.

0:14:45.235,0:14:46.631
If you text my mom right now,

0:14:46.640,0:14:49.231
and you're like: "Hey Gabe's mom,[br]what are you doing?"

0:14:49.242,0:14:50.792
She'd be, like, "Candy Crush."

0:14:50.816,0:14:52.234
(Laughter)

0:14:52.431,0:14:55.072
Okay? That's this demographic!

0:14:55.083,0:14:56.998
So, if you're not concerned

0:14:57.003,0:15:01.115
[about] the future of the live media[br]consumption industry,

0:15:01.129,0:15:03.005
you've got twenty years to go,

0:15:03.005,0:15:04.921
let me be the one to tell you don't.

0:15:04.935,0:15:07.670
So, in closing, I just want to say,

0:15:07.681,0:15:10.459
I feel like we are[br]at this important inflection point.

0:15:10.489,0:15:12.955
We're at a moment in time[br]in live performance,

0:15:12.961,0:15:14.659
in the creation of content.

0:15:14.677,0:15:16.889
We've been doing[br]the same thing the same way

0:15:16.889,0:15:19.585
for literally thousands[br]of years, more or less.

0:15:19.607,0:15:22.005
And as many the other speakers[br]have told you today,

0:15:22.009,0:15:24.942
lots of technological advances[br]are happening on the periphery.

0:15:24.951,0:15:28.587
We can use lots of different techniques,[br]incorporate lots of different ideas,

0:15:28.590,0:15:31.487
to make live performance[br]and our connection with the audience

0:15:31.490,0:15:32.865
deeper and more meaningful.

0:15:32.869,0:15:36.860
Along the way though, we're going to need[br]to adapt our entire concepts

0:15:36.860,0:15:41.079
to think about things[br]using the new and improved brains

0:15:41.079,0:15:42.523
of the next generation.

0:15:42.533,0:15:45.999
And gamification is the platform[br]we'll use to make that happen.

0:15:46.008,0:15:47.137
Thank you.

0:15:47.137,0:15:49.137
(Applause)