- My friends, if you do not spend 2018
completely and obsessively around Facebook and Instagram,
you will lose.
(soft music)
Toys "R" Us did two things over the last couple decades
that make no sense.
One, very early in the 2000's
they outsourced themselves to Amazon.
They didn't believe in the internet,
17 years ago said let Amazon do their fulfillment.
Which started people getting used to buying toys
on the internet through an Amazon world.
But most importantly, they just didn't innovate.
And when you don't innovate, you die.
Like when you don't change you die.
The world passes you by.
It's the best example right now
of how in trouble everybody is
if they fuckin' rest on their laurels.
If Toys "R" Us, the dominant niche retail leader
of a humongous multi-billion dollar category, is finished,
what do you think is gonna happen over the next six years?
This is a calm before the social media storm.
This is 2000 all over again.
The internet came out, it had a lot of hype,
the market crashed, people didn't see returns
and people left it.
Borders didn't believe in it,
they gave Amazon the infrastructure,
they're out of business.
Blockbuster didn't believe in it,
they let Netflix come in and put them out of business.
Social media has had a lot of hype the last two years,
the next three are gonna be soft
because people are not gonna figure out the ROI
and then people are gonna be put out of business
and huge businesses are gonna blow up
and explode and take over in 2013, 14, 15.
- Wow.
- Yeah, that's what's happenin'.
We have a room of professionals in this room
who say, well my customers not on Facebook or Instagram,
maybe they're on LinkedIn.
That is the exact same rationale
that Netflix put Blockbuster out of business with.
Blockbuster sat in a room and they said,
our data shows that people like going to our stores.
By the way, are you really ready to laugh?
Here's what the report actually said,
they like the experience of going to our stores
because they like the ability to open and close
and read the back of the DVD cases.
It gets better, they enjoy the serendipity
of possibly running into their neighbor.
This is what the report, by the way,
that's my favorite part about reports and data,
when you have an agenda
you can make a report do a anything you want.
Thank you.
And then finally, they really like picking up
popcorn on the way out.
I don't know about you guys,
but here is the experience I like,
laying naked in my bed and pressing one fuckin' button.
(audience laughing)
Like, social time at the store, really?
Like, that's not gonna play out.
Like, it's just not gonna play out.
You'll find other things to do.
There's not gonna be a single convenience store
in America in 20 years.
Like 7/11's out of business.
You're not gonna go there.
You're just not.
You're gonna get everything within an hour.
Everything, on demand, ad hoc, at the lowest possible cost,
you will not believe it.
We hold the past on a pedestal and we demonize the future.
Like that's just not how it works.
And this internet thing, you're sleeping on it.
It's bigger than you think.
This is it.
This is the television and radio of our society.
The internet has won, there is no debate,
you may not like it, it doesn't matter what you think.
Guys, ABC and CBS and ESPN are out of business.
It's already over.
80 billion dollars, you can sit cause I gotta wrap up.
80 billion dollars in television commercials
and nobody fuckin' watches them.
Over the next three or four to five years,
the biggest companies in the world are gonna understand that
that money is gonna go into the shit
that I just told you about.
That's gonna mean the ads that you're gonna run
are gonna go from $4.00 to $80.00
and you're not gonna be able
to compete with Coca-Cola and BMW.
So please heed what I told you
and take your romance or your subjective point of view
or you being romantic about how the world used to be
and shove that shit in the garbage
and get to fuckin' work.
One life, do something about it.
(audience cheering and applauding)