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Hello everybody.

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So, good to be here,

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and here at New World Stages,
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
and the dawn of the player.

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Let me start by introducing you
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
and also unbelievably annoying.

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

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

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They didn't end up this way
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
very easily distracted.

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They've a device in their pocket,

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it's constantly buzzing,
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,
which is kind of amazing, right?

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

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(Laughter)

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They are technologically literate
and obsessed.

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By the age of five or six

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today's American kids
have used more technology,

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and understand more
about the Internet and tech,

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than most of us understood
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
and very little discipline,

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they love obsession.

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

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

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it's also something that legitimately
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
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
in the constructive narrative.

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The reason for all of this, my friends,
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
the way we think about things,

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

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You may ask yourself:
Why are games so powerful?

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Why are they so influential,
what do they do?

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

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And here's how it works.

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Anytime you challenge
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
of a neurotransmitter called dopamine.

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And dopamine is
a very pleasurable experience.

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So,challenge, achievement, mm,
that feels really good.

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Now, Ian Robertson, a neuropsychologist,
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:
challenge - achieve - dopamine

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you also start secreting testosterone

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in connection with the challenge -
achievement - dopamine loop.

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So, over time, challenge -
achievement - dopamine plus testosterone

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affects the way your brain is structured.

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And the net of effect
of that structural shift

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is that things that don't
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
that deliver that dopamine release:

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challenge - achievement.

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

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in which all of these things
have come together

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to profoundly change
the nature of the audience,

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and change the way that we interact
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
or the creative industries,

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

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

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

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I'm going to tell you
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,
some of us aren't.

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

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But I want to show you
through a series of examples

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what people are doing,
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,
live entertainment.

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

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to our advantage,
to get where we want to go.

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And if we do that deliberately
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
and change their behavior.

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

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Now, what we need
in order to make this happen

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

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Any system that has
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
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
of you probably consider fairly gross:

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The idea of taking pictures of everything
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
to friend me on Facebook or Instagram -

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

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

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

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

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

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

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

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which some of you might know
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
like guns in the Old West,

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and the first person
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.
Right? Okay, you love this!

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So, here's the thing though,
here's the thing:

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As uncomfortable as all this sounds,
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
generation in the gamification world,

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the people at home
are part of the experience.

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

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They're clicking "Like",
they're clicking "Hearts",

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they're commenting.

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They're providing
that positive dopamine release,

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

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It just depends: not you, okay,
not you, but you!

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So sometimes they're providing
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
to me over dinner."

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What are the real business
effects of this?

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And let me tell you a story.

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One of the largest automakers
- 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
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
classic millennial stuff.

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Their care's the environment.

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They don't want to drive a car
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
among American teenagers

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

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so they're choosing not to drive."

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(Laughter)
(Applause)

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Okay?

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Now, It's true!

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

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

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I'd laugh you out of the room.
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,
with our world today,

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with this positive reinforcement loop

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produced by that
dopamine - challenge - achievement,

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everything is on the table.

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It doesn't matter
how ingrained the behavior is,

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

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people will follow their bliss.

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They will go where the most
positive reinforcement is,

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and that threatens to upend

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everything and anything
we know about people's behavior,

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nothing is sacrosanct.

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And for people who work in an industry

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based on a very long-term view
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
respond to social media?

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

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grab them with the bouncer,
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
of watching a performance.

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

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with this generation.

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

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watched broadcast entertainment,
like a TV show,

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

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We can't even sit through 22 minutes
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
through two hours of not interacting?

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So, one option is,
instead of fighting this trend,

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let's turn and use it in kind of
a positive way to our advantage.

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

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It takes the social media to live event,
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
people to compete with each other,

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

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and so on.

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And has been very successful,
very effective -

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instead of fighting with it, roll with it,
and leverage that power

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to do other things, to do great things,
and extend the experience.

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

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We assume that
because the millennial generation,

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because this next consumer
likes to be the center of the action

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- remember in games you're always
the center of the story -

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many content creators believe
that what this audience really want

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is to write their own story.

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They want to come and decide the outcome.

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And sometimes that's true, right?

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We've got voting in reality television.

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But in practice they want you
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
more viscerally involved.

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So you've got highly successful
immersive entertainment.

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There's no surprise

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

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It really works.

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It allows me to be part of the story,

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but you're still writing great story
that principally carries us through.

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So, if you can't do that,

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how could you use technology
to allow the user, the player,

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to be in the center of the story?

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And I think Domino's tells us
a great case study on this.

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So, Domino's built this app
called Domino's Pizza Hero.

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And in it you play a pizzaiolo,
someone who makes pizzas. Okay?

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So, they teach you in the app
how to knead the dough,

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roll the dough up, like Luigi,
and put some sauce on it,

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and cheese and vegetables.

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And flick your finger,

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it's instantly baked
at your local Domino's

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and delivered right to your door

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from inside the game.

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And if you're especially good at it,

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Domino's will invite you
to apply for a job

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(Laughter)

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from inside the game!

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Now, ha-ha-ha, but this company
needs to recruit 30,000 people a year -

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and by the way they make a $1M a week
in incremental revenue from this game.

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This game replaces
the soaring inspirational video

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on how Domino's uses only the freshest
ingredients to make your pizza,

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and watch this guy make your pizza,

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and everyone is well paid
and happy in white. Uhm!

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Now, it's an interactive experience,
it's visceral,

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and this is an important part
of the difference in storytelling.

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Many storytelling opportunities
in the theater

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are about where the boundary ends
between the audience and the performance,

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where the performance ends
and the rest of people's lives begin.

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And with new technology we don't
have to end the story when the story ends.

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We've got new - I'm not saying
you should all get Google Glass,

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but just as an idea.

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Some of you may have seen
this amazing Google Glass game

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called "Zombies, Run!"

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And the idea is to get you to run
by chasing you with zombies.

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(Laughter)

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But you can extend your stories and
your storytelling in much the same way,

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whether it's with Google Glass or not,

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it allows you to connect with people
in a different place.

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And this is another piece of the core
value proposition in the millennials,

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which is that the idea of personal
achievement is critical, it's primary.

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How I feel about the things
that I do is very important,

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and I want to know I'm making progress,

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and I want your product or service,
your idea, your content,

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to be part of my story of progression
and mastery in my life.

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And this is core to gamification.

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So apps like Nike Plus
have been hugely successful.

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They are effectively loyalty programs.

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This is like a loyalty program.

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But it leverages my own personal drive
to be better and do better,

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and allows you to extend
your content beyond where it is.

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And this extension, this consumptive
extension, is very important,

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because the millennials
are also on the leading edge

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of this concept of binge consumption

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made famous by the Portlandia
"Battlestar Galactica" episode. Right?

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So binge consumption is the idea
that I should be able to decide

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how much I want to consume as well.

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I don't only want to consume
the nuggets you've given me,

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if I'm really into the thing
you're making,

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I want to consume as much of it
as I possibly can.

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And I want to consume it
to the exclusion of other things.

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So there's an opportunity to extend
the concepts that you make

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even if you don't have the resources,

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even if the content that you're creating

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doesn't fit neatly into
a binge consumption model. Right?

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There's an opportunity using technology
in gamification to extend what you create

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and to come into people's lives
in a different way.

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And one of my favorite examples of this

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that also leverages an important concept
in gamification is Tabasco Nation.

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And that concept is tribalism.

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Because above everything else
we've talked about,

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millennials care about connecting,

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they care about finding
and being together with their tribe.

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So Tabasco Nation want a way of extending

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the concept of their hot sauce
into the world

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and drive behavior among people
who like hot sauce to the media assertion

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that if you like spicy food,
you're part of a tribe.

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Every drop of hot sauce that you use
is a point that you earn.

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The crazier things you do with hot sauce,
the more points you earn:

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like putting it on a piece of cake,
take it to the top of the Eiffel Tower,

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you know, put some
in your teacher's drink.

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It's cool.

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The more you do,
the more points you earn.

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the more cool experiences
they unlock for you.

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But the core value,
and it's a very successful campaign,

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the core value is
that you're part of a tribe.

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Just like you may be a part of a tribe
if you really like Sondheim musicals.

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You probably are!

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(Laughter)

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And here's the sort of coup de grâce
for all of us, you guys.

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Everything I've talked about

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I put through the framework
of this millennial generation,

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the next generation,

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but, in fact, everything
that the millennials want,

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be the center of the story,
consume more content,

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feel they're making progress,

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understand how your thing
fits into their world

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and be viscerally connected to it,

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that's stuff that people of all ages want.

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You don't have to be 24
to want those things.

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It just so happens, if you're 24,

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because you played a bunch of games,
you expect those things.

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But it's also true that if you're 45,
you still want challenging,

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you still want the content you want,

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you still want to feel connected
to the story and be able to do more.

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It shouldn't surprise you,

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the single biggest game playing
demographic in the world is women over 40.

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It's true.

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If you text my mom right now,

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and you're like: "Hey Gabe's mom,
what are you doing?"

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She'd be, like, "Candy Crush."

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(Laughter)

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Okay? That's this demographic!

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So, if you're not concerned

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[about] the future of the live media
consumption industry,

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00:15:01,129 --> 00:15:03,005
you've got twenty years to go,

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00:15:03,005 --> 00:15:04,921
let me be the one to tell you don't.

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00:15:04,935 --> 00:15:07,670
So, in closing, I just want to say,

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I feel like we are
at this important inflection point.

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We're at a moment in time
in live performance,

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in the creation of content.

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We've been doing
the same thing the same way

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for literally thousands
of years, more or less.

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And as many the other speakers
have told you today,

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lots of technological advances
are happening on the periphery.

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00:15:24,951 --> 00:15:28,587
We can use lots of different techniques,
incorporate lots of different ideas,

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to make live performance
and our connection with the audience

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deeper and more meaningful.

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00:15:32,869 --> 00:15:36,860
Along the way though, we're going to need
to adapt our entire concepts

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to think about things
using the new and improved brains

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of the next generation.

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And gamification is the platform
we'll use to make that happen.

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Thank you.

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00:15:47,137 --> 00:15:49,137
(Applause)