TAI LOPEZ: Welcome to the Tai Lopez show. I have one of the more interesting books I’ve read in 2017. Scott Galloway, he flew out here on his way to Vegas to party. He’s a professor at NYU, he’s been ranked as one of the top business professors and he wrote a book that I think is important. It’s not just interesting but it’s important and some books are interesting but not important, and some books are important but not interesting, so this is kind of both.
So I want to lay the groundwork and I read the whole book last night, again. I kind of had read it before, but I read it from start to finish. I was up until five in the morning reading this.
SCOTT GALLOWAY: I’m sorry about that.
TAI LOPEZ: No, no, it was worth it. So the book is about the Big Four that pretty much dominate more than you realize: Amazon, Google, Facebook and Apple.
So I’ve been tweeting about this. I don’t know if you’ve seen my Twitter the last three or four days –
SCOTT GALLOWAY: I have. I recognized some of your stats.
TAI LOPEZ: You see it’s up? Yeah. I would put that it’s a quote but it gets a lot more Twitter if it’s, so I kind of reworded ’em. But I figured you got the stats from somewhere, so I got that stats from you.
SCOTT GALLOWAY: That’s fine.
TAI LOPEZ: So Apple has more profit than Amazon’s had, Apple in one quarter has more than Amazon’s had since inception. Facebook, you consider the most successful like growth organism on the planet.
SCOTT GALLOWAY: Most successful that made a thing in history.
TAI LOPEZ: You say Google’s god because we used to pray to god when we didn’t know something, and now we Google it. And you say Amazon is — I liked how you put Amazon it’s like, unlimited capital raised. Its goal is to make it as hard as possible to compete with it. So they’re like if we can expand billions of dollars. Did you really say floating warehouses?
SCOTT GALLOWAY: So Amazon has applied for patents on a bunch of things including a warehouse that floats and drones that can reassemble from small to bigger drones, and I think it’s a bit of a head fake just so they can dominate the front page. So right now we’re all obsessed with their second headquarters. Most companies don’t do it, they just make a decision and they announce it. But if you look at old media, it’s basically been co-opted into being the investor relations PR department for big tech. So how many things have you received via drone?
TAI LOPEZ: I don’t think, we get so much, I don’t think so.
SCOTT GALLOWAY: I think it’s coming in a truck. I’ll take the over-under on none, but when Amazon announced that they were going to start delivering drones five years ago on 60 Minutes, the press has been writing about it every week for the last five years. Uber just announced that in LA, they’re working with NASA to come up with these flying taxis. So I don’t mean to be cynical, but I don’t think when I’m here in two years visiting you –
TAI LOPEZ: I know, I saw that 2020 or something.
SCOTT GALLOWAY: Companies traditionally in the past liked to under-promise and over-deliver. These companies over-promise and under-deliver, and the press seems to put up with it.
TAI LOPEZ: So you’re literally saying, kind of the world we live in now almost works for these companies and that traditional media now is the PR department. Apple is funded by investors that don’t care about profits.
SCOTT GALLOWAY: Amazon.
TAI LOPEZ: I’m sorry, Amazon. And Apple runs pretty much, sometimes I’ll text somebody and they’ll go, it was iMessage, I feel like it’s something wrong.
SCOTT GALLOWAY: Different color, sometimes it doesn’t go through.
TAI LOPEZ: Yeah, they’re green. They’re like, what the hell? Let me read this, this is interesting. So I was talking a little earlier before we went live, about how I can’t tell if you love them or hate them or maybe it’s a little bit of both. But you said, by the way, good job on the book to put things like this in visuals. I can’t tell you how many books forget to do this.
So you talk about here, “Imagine a retailer that refuses to pay sales tax, treats its employees poorly, destroys hundreds of thousands of jobs, and yet is celebrated as a paragon of business innovation.” I’m assuming you’re talking about Amazon?
SCOTT GALLOWAY: Yup.
TAI LOPEZ: Then you say, “A computer company that withholds information about a domestic act of terrorism from Federal Investigators with the support of a fan following that views the firm similar to religion.” Apple?
SCOTT GALLOWAY: That’s right.
TAI LOPEZ: So you consider Apple almost a religious state?
SCOTT GALLOWAY: As we become more educated and affluent, church of tenace goes down, but our questions and anxieties are bigger and bigger, creates a void for religion. Apple’s our religion, Steve Jobs is our Jesus Christ, and this is the new cross.
TAI LOPEZ: Wow! Not controversial at all. And you say, “A social media firm that analyzes thousands of images of your children, activates your phone as a listening device, and sells the information to Fortune 500 companies.” Is Facebook literally recording us when we don’t know it?
SCOTT GALLOWAY: So if you have the Facebook app open, there’s ambient listening. Now to be fair, it’s just there so it can serve you more relevant ads. So if you’re at an Adele concert, you might get served her album. They’re not doing anything insidious with it. The scary part though is that Facebook has shown us, they haven’t put in place the safeguards to ensure that it’s not weaponized by bad actors.
So the scary thing isn’t that Facebook is listening, it’s that an intelligence unit or the Russian government might be listening.
TAI LOPEZ: Right, so they’re hacking in somehow. Zack — Zack’s here running the sound, but his brother Andy is convinced, I have one of those Alexa things and he’s like, “I don’t want to be in the room, trust me, it’s listening to us.”
SCOTT GALLOWAY: It spools 45 seconds backwards. So again it creates all sorts of interesting things. Should we train Alexa that when it hears a gunshot, to call the police automatically? Violation of privacy versus crime prevention. There’s just going to be some very interesting things that happen with these new technologies.
TAI LOPEZ: Or if somebody yells our fire or something, loud enough.
SCOTT GALLOWAY: Or I’ve fallen and I can’t get up.
TAI LOPEZ: I’ve fallen and I can’t get up might work. I got a 99 year old grandma. And then lastly, you said, “An ad platform that commands in some markets a 90% share of the most lucrative sector in media yet avoids anti-competitive regulation through aggressive litigation lobbyists.” Assuming that’s Google?
SCOTT GALLOWAY: 90% more share than Mabella the railroads had, of a market that by dollar volume, is bigger than the entire advertising market of any country with the exception of the US.