Breaking Storytelling Boundaries with Gita Rebbapragada, COO of Crunchyroll

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[00:01:40] And so you're going to start to see the art form in terms of like the characters always rooted in that anime style that is very much rooted in Japan but potentially the stories being relevant to more international territories.

[00:01:54] To thrive in a rapidly evolving landscape, brands must move at an ever increasing pace. I'm Matt Britton, founder and CEO of Suzy. Join me and key industry leaders as we dive deep into the shifting consumer trends within their industry, why it matters now and how you can keep up. Welcome to the speed of culture.

[00:02:11] Today we're thrilled to be joined by Gita Repregada, the current chief operating officer at Crunchyroll which is part of Sony Pictures Television, one of the largest anime media content libraries and distributors around. Gita, so great to see you. Thanks so much for joining today.

[00:02:28] Thanks so much for having me.

[00:02:30] Absolutely, so anime is an interesting thing. You know, growing up I remember there was a point probably when I was in college when a lot of people started to talk about it and it became super popular. I guess it came overseas because it originated in Japan if I'm not mistaken. For somebody who doesn't know anything about anime, how would you describe it and why do you think it's kind of captured such popularity here in the US?

[00:02:53] Yes, so happy to talk about that. Anime is an art form that is over 100 years old. It is from Japan, you're correct. A lot of anime which is the series version or the video version is based on essentially Japanese comic books that are called manga and these stories are really rich with artistry and characters and what people are drawn to oftentimes is the unique story arcs.

[00:03:23] And narrative territories that a lot of entertainment, especially Hollywood or globally doesn't cover. So it's always felt like it's had a distinct sort of flavor to it and it's sort of started to gain popularity in the 80s and 90s because a lot of anime was on Cartoon Network in the US for example, started to travel internationally but it was really with streaming where content discovery just became that much more touch of finger to say.

[00:03:50] That anime really started to have this accelerating exponential growth that we're seeing today and then with Covid on top of that pulled forward a lot of trends that we saw in terms of anime discovery and so post Covid we have not seen any retraction if anything all of that discovery is created quite a bit of demand for anime and we don't see that slowing down anytime soon.

[00:04:16] So when you say anime can cover stories that kind of traditional Hollywood mediums can't is that because it's the form factor of it, it's animation so by nature it can kind of extend the boundaries of storytelling and are there other kind of limitations that you think anime is able to break through to make it so unique.

[00:04:34] Actually Hollywood has a great canon of characters though it's not that Hollywood or other global entertainment can't do it, it's just that the types of stories that are told in anime are just much more common with certain things so for example you will see many more flawed heroic characters in anime every single character has some sort of flaw or adversity that they're overcoming and personally I have found that incredibly relatable.

[00:05:02] Yeah it's vulnerable right because no one really associates with people who are perfect.

[00:05:06] And they're vulnerable there oftentimes outsiders and that can be very very relatable and what we find which is incredibly fascinating to me is that there's a certain moment in time when fans connect to anime so.

[00:05:20] When they discover it it's a very visceral instant reaction like when they discover it they love it and there's this period of time when people tend to discover it and it's a lot of times in your sort of.

[00:05:31] Teenage years and I think part of that is because the relate ability of these characters everyone's going through a life transition in the relate ability of these character.

[00:05:41] Is really kinetic during that time of your life which obviously I am way past that but I see that connection every single day at work when I'm talking to fans and it's really quite remarkable like that's the only word to describe.

[00:05:54] Absolutely and with some of these amazing new AI driven technologies I imagine the future of anime is going to be a much different world than what we see today how do you see anime itself evolving with all these technological advancements when it comes to content creation.

[00:06:10] What I think the biggest thing that's going to drive or one of the things we'll see maybe not the biggest one of things we'll see is that you know anime has been historically Japanese stories that are now being launched to the world.

[00:06:25] And for a while the Japanese anime industry was much larger than any other territory now you're seeing much more balance between what is consumed globally versus purely in Japan and what that means is that a lot of the stories.

[00:06:39] May not be rooted in Japanese manga always so for example we just launched a show solo leveling I highly recommend it it is based on a Korean I.T.

[00:06:50] And so you're gonna start to see the art form in terms of like the characters always rooted in that anime style that is very much rooted in Japan but potentially the stories being relevant to more international territories.

[00:07:02] Got it and I guess you talked earlier about coven being a great accelerator so I imagine like for me I have a block with anime because I just have never really consumed the content so just like anything that whether it's a type of food you've never tried or place you never travel you have your perception of what that thing may be.

[00:07:18] And I guess Kobe people are home they had so much more time to consume so you gained a lot of trial opportunities I would imagine and you were able to take that and bring more people into the franchise in the fold.

[00:07:29] Yeah we did and I think the benefit of people having more time in discovery is that I think what they came to realize is that anime is a medium and not a genre.

[00:07:38] And so maybe what they had been exposed to before which they had an opinion on or before wasn't the full suite people a lot of times think of anime is like sword fights and what we call shonen content but it's acting you know their comedy their slice of light there's art house.

[00:07:52] And so seeing the full breath I think really widen the aperture for the types of people that would consume it and we just released a beautiful film Susan a and it is a fantasy sort of incredibly.

[00:08:07] Beautiful artistry based film and for the first time this film and another anime film were nominated for a golden glow which is the first time that happened.

[00:08:17] An anime history to have to anime films and so we do feel like it's kind of having a moment right now and it's really really fun to be a part of.

[00:08:26] Absolutely so let's move on to the business side so you are the CEO of crunchy roll which is part of Sony huge entertainment company and I guess what crunchy roll does is it's focused on the vertical of anime is essentially streaming platform correct how this platform come to be and how has the platform evolved over time.

[00:08:45] If you even go back two years ago Sony had a lot of different what I would say assets working in the anime space and so a couple of brands and so what we've done when we work to do over the last you know.

[00:09:01] Several years and is to bring those all together and roll them up under the crunchy roll brand and so huge win for fans because if you love anime you are saying more value right yeah.

[00:09:15] Yes now you can just have one service and we're sort of and a lot of that integration effort and we've consolidated our library we've exposed that to fans so it's great to be able to deliver that kind of value.

[00:09:30] And I think now it enables us to focus on a couple of things one is taking advantage of the international opportunity so there's still massive room to grow across the world and so in many of our territories we feel like it's early days.

[00:09:45] And then the other is that we're not a general entertainment streaming service we do have a focus and our model is to be.

[00:09:53] Everything to someone not something to everyone and being everything to someone means that sure we're streaming service we have an ad based and a subscription based model but we also have e-commerce we also had games we also have films a licensing business and so

[00:10:09] We're just trying to super serve a core set of fans which is wild core sounds maybe a misnomer because there's casual fans it's anyone who loves anime and I want to put a label on but with all the ways that they want to consume it in the language that they want to consume it.

[00:10:26] Absolutely and some of the streaming platforms have had some challenges over time obviously over the last couple years post covid making the economic model work the ones that have been able to.

[00:10:36] Be successful despite these headwinds I believe for companies that have some type of ecosystem so apple has a broad ecosystem Amazon's abroad ecosystem where.

[00:10:45] The platform stream clapper either a loss leader or can be subsidized in some way and but struck me as you were talking about crunchy roll that it is part of Sony and Sony has a gaming division has motion pictures.

[00:10:58] How is fitting country within the broader so many goes to them kind of give you a competitive advantage to maybe had you get some of the broader streaming challenges.

[00:11:07] A great question one thing I will say is we're so fortunate to be part of the Sony family I mean it is a company that is obviously a Japanese company and yes anime in a way that.

[00:11:18] I think it's very unique to them they also do have an anime ecosystem and so think about for example a lot of the music that is beloved in anime shows.

[00:11:30] Is Sony music Japan for example makes a lot of that music and so there's a lot of connection points there a lot of anime is consumed on a playstation.

[00:11:40] And they are in the family so we do have a very fortunate a lot of brothers and sister companies within the Sony port that create a lot of incredible partnership opportunities for us.

[00:11:52] I'll give you an example every year we throw an award show in last year we brought it to Tokyo for the first time.

[00:11:59] And we had a Sony whenever Sony sister companies produce the show for us provided a lot of the musical acts for us so there's just a lot of collaboration that happens in our Sony family that is truly advantageous to us.

[00:12:13] I'm sure and as you look to the future drive growth I'm sure there's no shortage of pressure on your organizations like any other this new economic reality we're living in.

[00:12:23] How do you look at customer acquisition how you look at customer retention reducing churn so you can make the math equation of the streaming platform work in a world with many others I think are challenging to do so right now.

[00:12:34] Yeah I mean this has been the existential question I've had throughout my entire career sure is that whole lifetime value to cap ratio like how do you create the right economics for sustainable growth which any subscription company has to look at.

[00:12:49] Yeah and that is actually a through line in my career because I have worked at many continuity models and sort of it's the same whether they may be in fashion or entertainment or.

[00:12:58] Mobility services it's really the same method in the same math equation you're trying to deliver and it could be a wonderful model if you crack it running a subscription software company myself but as good as it is if you can't keep customers if you can't grow them.

[00:13:12] And your cost rise to acquire new ones and all of a sudden you know it becomes really hard to sell for.

[00:13:18] Yeah so I think one thing I will say that is a through line from country role but also through other jobs that I've had in this similar role.

[00:13:27] Is that demand creation is incredibly expensive so reviewer in the business of having to create demand for your product or service that makes it a lot tougher.

[00:13:37] And this is also a through line in my career of being a part of fandom or community based organization if you can empower your fans to drive the conversation for you or they're doing that anyway I mean you may be the most brilliant.

[00:13:51] The demand versus.

[00:13:54] Then it's actually a lot different equation looks a lot different and I think one of the things that is helpful for us is that.

[00:14:03] A lot of anime is based on manga and we know who's reading the manga right there's very strong digital signals already around a certain many of the titles that we bring to market so we're constantly learning to be smarter and there's also a baseline level of demand and I think that's also incredibly helpful.

[00:14:19] Right you've tailwinds in the category itself it's reducing the cost of fire but also getting the lifetime value up higher and then other companies that has looked.

[00:14:28] A lot of different ways right but there are certain very common things about continuity models in terms of how important it is to.

[00:14:36] Have your customer do certain things very early on in your journey together whether that's an entertainment any company i've worked at the more that they discover your product and understand the value the more likely that they are to stay.

[00:14:50] And so those first whether it's forty five to ninety days are incredibly important in terms of what you're putting in front of them and sometimes it's the first seven days right every business moves at her pace.

[00:15:02] And so that's also you know one of the commonalities of continuity models and then also meeting people where they're at right you're going to have customers that are going to your platform every day.

[00:15:13] And you're going to have some that are more intermittent and actually understand what their behavior patterns are and pivot accordingly.

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[00:17:08] As you look at Gen Z which I would imagine that growingly important part of your overall consumer segment and you look at the way that they're consuming content on platforms like tick tock super short form for the swipe so to speak do you see that trend being a threat or an opportunity.

[00:17:25] For so many to get into that space or maybe extract some of the man the can be created that space and channel it to your platform.

[00:17:32] What for us I think it's just opportunity I really do and I think probably a lot of.

[00:17:37] See most have a different answer to this question for me the short of the content people are consuming so many more messages which makes their ability to disorb it in this like meadow way where it's in their hearts much harder but you have the ability to get your message in front of millions of people and days.

[00:17:53] But so does everybody else so I guess that there lies the opportunity challenge right.

[00:17:57] Exactly and so the way to crack that is to really know who you're aspiring customer is not who your customers today that's your customers tomorrow is to be really smart about where the trend lines are going in your business.

[00:18:11] So that you know okay this is the group that's gonna be fifty percent of my customers three years or five years and be really forward thinking a predictive about it.

[00:18:20] Because then if you can build that relationship early on with that cohort it takes a while right fifteen twenty thirty times someone has to see the same thing even for it to register that's the trade off.

[00:18:32] Absolutely we just did around the interviews at CES price we've got fifteen different CMOS no one thing that kept coming up over and over again is obviously first party data.

[00:18:40] With all the changes we seen with the crumbling cookie at google and before that you know apples changes so when you talk about signals and understand your customers i imagine.

[00:18:51] Understanding obtaining that first party analyzing it to dictate where your customer acquisition reach strategy to go to is everything for your organization.

[00:18:59] It is actually and we're no different than deeply understanding how this is going to affect our program but again our program is very grassroots so it is different.

[00:19:10] The random behind anime allows you to go out of the different way that's the way i would characterize our program most of our time and energy and our people are very much around community management which i think is a slightly different model than some of the others.

[00:19:25] Absolutely so what shift goes a little bit to you and your career so you started off at zip car kind of in their day day and overtime kind of gravitated towards the entertainment space.

[00:19:35] What is your role currently if you describe kind of the pie chart of your day and how you're spending your time with success looks like and how do you think some of the experiences that you had in your career leading up to your role it's only have helped you with being so successful in your current event.

[00:19:51] Sure so if i look at the pie chart of my day i probably should do the exercise of pie charting my day.

[00:19:58] I mean i have three sort of main sets of activities underneath me SEO one is marketing that's what say i spend about 30% of my day on that.

[00:20:07] One is the operations of our streaming service specifically so the marketing team support all of our lines of business the operations and this is specifically for.

[00:20:16] Our streaming service and i spent about a third of my time on that and then a third of my time is i also oversee our strategy and planning function so a third of my times but 100% of my time.

[00:20:27] Is thinking about how to grow the business we're in a really privileged position where that's our focus is to take advantage of this opportunity.

[00:20:35] And i think that has been a through line throughout my entire career when i was a marketer i was a growth marketer so always looking about exactly those metrics ltv to cat but also.

[00:20:45] How to bring people in how to keep them how to engage them how to make them promoters for your particular brand.

[00:20:52] And i think what i've learned over having worked in a number of continuity models or subscription businesses but also community based businesses.

[00:21:02] Is that things can change very quickly so for example when i started at zip car uber had just launched its black car service is just like very much dating me.

[00:21:13] And you can imagine the world of mobility was transformed within a two year period.

[00:21:19] And similarly when i was in athleisure but athleisure was still a new thing people are still wearing jeans.

[00:21:25] Back then and then there was a market opportunity but those windows can be really really small so i think one of the lessons i've learned from.

[00:21:35] I think maybe the through line here is i look magnetically drawn to a market opportunity that hasn't existed something new building something new.

[00:21:44] But those windows can change very very quickly and i mean entertainment is no stranger to that certainly.

[00:21:51] And one thing i see it with my company with all the changes.

[00:21:55] What is like you with three hundred people not probably know as much as uf organization and just getting people to wake up.

[00:22:03] Change the way they're doing things because you don't someone else will i imagine at a large organization that is in a dynamic category it's not always easy to kind of drive that type of change you know this to imagine change management

[00:22:19] getting people to change their behaviors evolve with the changing pace of the industry is something that is a challenge and something that i mean i would imagine is a big part of your role.

[00:22:28] It is a big part of my role and also doing it empathetically is something i aspire to do right because not everyone embraces change right away different people have grand journeys.

[00:22:43] That they're on to get from point a to point b some people are linear some people are circuitous and change management is just incredibly nuanced i feel.

[00:22:52] Yeah i mean is that your problem gita like it's interesting because i get what you're saying terms of being empathetic but.

[00:22:58] You're not imparting change on people the broader markets are so is it up to the leader to be empathetic and to kind of go down people's personal change journeys or is it up to the individual to adopt change in order to remain relevant in this changing world.

[00:23:12] Yeah i think that i would say being empathetic can work in concert with driving results and it's not a trade off people think i'm doing it empathetically it has to take longer somehow i actually don't think that's true i think being transparent about what be looks like.

[00:23:30] Is empathetic and acknowledging that it might be harder for some than others is also because people are robots you can't just say do this and expect them to do things differently just because you say it for some people they will be like.

[00:23:42] I get it makes sense where the markets heading some people need to understand the context a little bit better different people have different ways of processing change and i think that's.

[00:23:52] One lesson i've learned having gone through so many rapidly evolving industries is that the sort of like the logical do this by the state isn't always going to win everyone over sure and the power of why you're doing it can make you get there faster.

[00:24:09] Yeah imagine that's a two sides of the coin of somebody like yourself and i totally empathize with it being attracted to innovation.

[00:24:17] An innovative categories innovative models at the same time the innovation hits you as much as you hit it and in order for you to impact your business around the innovation you need to drive change in your people need to innovate or evolve.

[00:24:31] And that's often the hard part like knowing what to do i think a lot of people think is oh they should do this it's like okay well i know we should do this but getting three hundred people to march in the same direction is a whole different story.

[00:24:45] Yeah i completely agree but i also think as leaders and anyone who's working on any business who is influencing other people's lives you have to challenge yourself to ask yourself the question if i started this business today what would it look like.

[00:25:02] Why someone will if you're not thinking that i guarantee someone else is thinking what is today's version of this business look yeah they're not going to be saddled with your legacy decisions your legacy infrastructure cost basis.

[00:25:14] And that's why you see up starts coming in that's why you see the ubers of the world coming into a category because they build a company based upon mobile adoption and they were able to build a platform that would have been possible before the iPhone which is just six years prior right.

[00:25:27] Exactly and also a lot of these innovations like there's room for a lot of different players but also knowing where your space is going to be in the evolved ecosystem.

[00:25:37] Is super important yeah and i mentioned a lot but i think one of the big innovations in here you're going to see here in twenty twenty four which wasn't really possible in twenty twenty three is text the video you see platforms like pico labs and runway where.

[00:25:54] You can essentially say make a video about this and it'll make it and right now it takes fifteen minutes to render etc but with the chips getting better and quantum computing and all this new technology in fact companies like qualcomm are now building new chips for laptops that get more processing power.

[00:26:11] In the hands of that treated device so i would imagine when you talk about innovation and disruption and opportunity in anime can consumers create their own anime and is that an area for you guys to get into.

[00:26:23] Well they're doing it right now they are okay when there's fans subtitling and when you have the highest of any fandom on the planet.

[00:26:32] And craving the next episode that's coming out of japan you see that and it is a big issue for us piracy is a big issue for us like it is for almost any entertainment company and so that is a pretty formidable competitor that i will say right but unless you can acquire it and create it and then you can own it and put it in.

[00:26:52] The hands of consumers and it becomes a big opportunity i would imagine the same time.

[00:26:56] Yeah it's an opportunity and it's also any times more public that's the rest that it's pirated and so we're always thinking how do we deliver value that if you're pirating content.

[00:27:09] That there is a reason to believe that country roll is for you and it's a really complex thing there's time to market i mean there's a million different.

[00:27:17] Of course.

[00:27:19] A lot of people don't even realize they're pirating you know some of these services and look very professional and you would never know and so something that obviously is very top of mind for us.

[00:27:28] That's a and a company like disney i would imagine so near kind of not think about in the same sphere like disney leads into its own i.p.

[00:27:35] Right so they have mickey mouse may have moana in this i.p.

[00:27:39] Which really kind of creates a moat for them versus other platforms that don't have to so where is it look like an anime are there brands that you can own or is it just more about new things coming out all the time or if they're kind of staple or pillar brands that are very important that give you a distinct advantage in anime.

[00:27:56] It's a little bit of both the anime ecosystem something that we're incredibly committed to as a company is supporting the anime ecosystem in Japan.

[00:28:06] A lot of anime is made by a committee structure so it doesn't have one outright owner like in the way that hollywood studio might own a hundred percent of one i.p.

[00:28:16] Typically there's a number of players that come together to form a committee and then they make a show.

[00:28:21] And so it's a slightly different structure and it's something that's incredibly unique and not really well understood outside of Japan.

[00:28:31] But it is how we participate so we participate oftentimes on the committee as a committee member.

[00:28:36] And that supports the anime ecosystem and we're sort of directly involved with the creation of the show to some capacity and it differs for every show.

[00:28:45] Makes sense I imagine spaces ever evolving these decisions are complex as the category continues to grow.

[00:28:51] It is and it's also you know there's something really amazing about partnering together with a number of people to create something.

[00:28:58] But then also being held accountable to all of your partners to make it a success and I think that there's something very special about that.

[00:29:05] Absolutely so wrapping up here get it just back to you I mean you obviously are somebody who really career focused and has become kind of a master of her craft when it comes to direct the consumer and as you mentioned kind of all the unit economics behind building a subscription business.

[00:29:22] And you're in a really exciting role now crunchy roll as you look back on your career and decisions you've made.

[00:29:28] What do you see some of the things that you've done right to put you in a position that you are today to be at the helm of such an exciting organization and obviously many more opportunities in the future.

[00:29:38] I'm not sure if I did them right but I think one thing that I would say has served me well is I haven't over thought my career.

[00:29:46] I think that's why it's taking me in so many twists and turns in different industries is because.

[00:29:53] I didn't have a set path in mind like I want to be at X time and X company I've sort of just looked for the next good puzzle to solve.

[00:30:01] And that has been honestly just kept me very engaged at work and own energy to work just because I've been so intrinsically engaged and I think that obviously I think always brings out someone's best work.

[00:30:12] But it also has taken me down a really unexpected path I mean if you had told me I remember sitting in Tokyo last year.

[00:30:20] In March at the anime awards and watching this amazing show with incredibly talented group of creators in Japan and if you told me 10 years ago I would be sitting there doing that I think I would have said no way you know that's.

[00:30:34] Of course yeah that's a crazy thing.

[00:30:36] Even you know something that would have been possible so I think just my advice to people who especially ambitious ones is like think about the puzzle thing about the problem that you're solving.

[00:30:47] The titles all of the recognition that all comes later just follow your brain and your heart in terms of what is actually going to be super interesting to you people who love their jobs are I think are just better at them.

[00:30:58] Yeah I couldn't agree more and with that is there sort of a mantra we're saying you like to live by that maybe helps drive the way that you approach your career.

[00:31:07] When am I favorite quotes which a lot of people use is be the change that you seek the run D and it's like really something I've taken to heart rate if you want to change things if you want to make them better.

[00:31:20] If you want to do something new just be that person who's doing it and set it by example I think is I have worked for leaders who have embodied that so beautifully and they have been so inspirational to me.

[00:31:33] Yeah it's interesting we're talking earlier about change management ultimately the best way to get people to change is to change yourself and show them you can change.

[00:31:40] Exactly and to lead by example as well exactly we're gonna leave it with that this is fantastic.

[00:31:47] Getting to know about you and your journey I'm definitely gonna have to check out some anime sometime soon on crunchy roll to see what all the fuss is about so thank you so much for joining.

[00:31:56] I will I will.

[00:31:58] Absolutely on behalf of Susie and we team thanks again the Gita rep regatta chief operating officer for crunchy roll for joining us today please be sure to subscribe rate and review the speed of culture podcast on your favorite podcast platform till next time see you soon everyone take care.

[00:32:16] The speed of culture is brought to you by Susie as part of the ad week podcast network and a guest creator network you can listen subscribe to all at weeks podcast by visiting ad week.com slash podcast find out more about Susie head to Susie.com and make sure to search for the speed of culture in apple podcast spotify and google podcast or anywhere else podcasts are found click follow so you don't miss out on any future episodes on behalf of the team here at Susie thanks for listening.

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