How the Metaverse Might Actually Work — with Matthew Ball

Podcast Summary

• Economic shifts towards dispersion: Dispersion trend unlocks immense value and progress, but may leave some behind. Atlassian software, metaverse, and Amazon's acquisition of One Medical are examples. Society must invest in retraining and support for those affected.

  We're living in a time of significant economic shifts, with the latest trend being dispersion. Atlassian software, like Jira, Confluence, and Loom, helps teams collaborate and accomplish more together than they could alone. The metaverse, as discussed with Matthew Ball, has the potential to revolutionize various industries. Amazon's acquisition of One Medical for $3.9 billion marks the beginning of a new wave of dispersion, where traditional industries and services are moving from physical locations to digital platforms. This trend, following globalization and digitization, is expected to unlock immense value and progress, although it may also leave some people behind. It's crucial for society to invest in retraining and supporting those who are affected by these economic shifts.

• The future of healthcare is moving towards telehealth and smartphones: Amazon's entry into healthcare could lead to more accessible, affordable, and proactive care, but concerns over privacy and antitrust must be addressed.

  The future of healthcare could lie in its dispersion beyond hospitals and doctors' offices, towards smartphones and telehealth. This shift could lead to more proactive, preventive care, remove cost and intimidation barriers, and offer significant benefits for both individuals and caregivers. Companies like Amazon, with their data processing capabilities and e-commerce expertise, are well-positioned to lead this transformation. However, concerns regarding antitrust and privacy must be addressed to ensure a fair and secure healthcare industry. While Amazon's privacy record is not perfect, it pales in comparison to companies like Google and Facebook, which have a more questionable track record when it comes to handling user data. Overall, the potential benefits of a more accessible, affordable, and proactive healthcare system far outweigh the risks.

• Health Care Industry Needs Disruption: Inefficiencies, High Costs, and Limited Access: Amazon's entry into health care could disrupt administrative inefficiencies, reduce costs, and improve access to mental health services and primary care.

  The health care industry, often referred to as the "sick care" industry, is in dire need of innovation and disruption. With health care spending reaching unprecedented levels at $4 trillion per year in the US, there is a significant opportunity for digital health startups and technology companies like Amazon to enter the sector and improve outcomes while reducing costs. The average health care professional spends approximately 16 hours per week on administrative work, highlighting the inefficiencies in the system. Telehealth has seen exponential growth during the pandemic, particularly in mental health, with nearly 1 in 4 adults reporting virtual appointments in the previous 4 weeks. However, access to primary care remains a challenge for many Americans, with nearly 1 in 4 lacking a regular provider. The insurance industry, which currently returns only 55% of premiums in direct health care benefits, is ripe for disruption. Amazon's entry into the health care sector, while facing antitrust concerns in other areas, could lead to significant improvements in health care access and affordability.

• Amazon as a Disruptor in Insurance and Healthcare: The speaker believes Amazon's entry into the insurance and healthcare industries could disrupt collusive practices between banks and insurers, and calls for regulation to prevent monopolistic behavior.

  The speaker expresses strong opinions about the insurance industry, particularly in relation to the alleged collusion between banks and insurers, and sees Amazon as a disruptor with potential in the healthcare industry. He also mentions his personal experiences with owning rental properties and not having insurance due to the high costs. The speaker also shares his bullish stance on Amazon entering the healthcare industry and calls for regulation to prevent monopolistic practices. Additionally, the podcast includes sponsor messages from Betterment, an automated investment and savings app, and Atlassian, a software company. The speaker is currently on a book tour for his new book, "The Metaverse and How It Will Revolutionize Everything."

• The metaverse is undergoing transformation from a boardroom strategy to a public marketing concept: Despite significant investments in metaverse technology, it's unclear if it will replace current devices and usage is lacking, but potential stakeholders include gaming companies like Microsoft, Unity, and Epic Games.

  The metaverse, represented most publicly by Meta (formerly Facebook), is currently undergoing significant transformation from a boardroom strategy to a public marketing concept. However, the technology and behaviors it promises to bring have yet to materialize, leading to confusion and skepticism. New technologies such as overhauled Internet protocols, 3D file formats, augmented reality and virtual reality headsets, and holography are being explored. Meta, the company most identified with the metaverse, has made significant investments in virtual reality headsets, virtual world platforms, and wearables. While there have been some advancements, usage and developer investment are lacking, and it remains unclear if the metaverse will replace current devices. Despite these challenges, companies like Microsoft, Unity, and Epic Games, which are focused on gaming and virtual worlds, could potentially add stakeholder value in the emerging metaverse landscape.

• Exploring Enterprise Applications of the Metaverse: The metaverse offers vast potential in enterprise applications, from modeling and decision-making to real-time simulations for urban planning and military training, improving infrastructure management and creating immersive experiences in various industries.

  The metaverse, a three-dimensional rendering of the web, is not just limited to consumer leisure, such as video games, but also has significant potential in enterprise applications. Companies like Epic Games and Nvidia, founded in the early nineties for 3D simulation, are leading the way in this field. The use of 3D simulation in enterprise can range from modeling and decision-making, such as Microsoft's digital twins strategy, to real-time simulations for urban planning and defense war games. The potential applications are vast, from improving infrastructure management to creating virtual training environments for the military and quantitative trading. The metaverse is not just about entertainment but also about creating immersive and interactive experiences in various industries.

• Companies are making strides in the metaverse for commerce and interactions: Apple, Meta, Nvidia, Epic, and others are investing in the metaverse, a virtual world with a projected economy exceeding that of the physical world. Virtual goods, like NFTs, and advanced simulations are driving growth.

  Technology companies like Meta, Nvidia, Epic, and Apple are making significant strides in the metaverse, a virtual world where commerce and interactions occur. Companies like Planet Labs use advanced simulations and 3D modeling to analyze Earth's data, which can be applied to various industries, including agriculture and training. Apple, with its powerful chips and dominant app store, is well-positioned to benefit from the metaverse economy, which is projected to exceed that of the physical world. Virtual goods, such as NFTs, are becoming increasingly popular as a form of digital signaling and commerce. While the NFT market has faced challenges, the category holds potential for significant growth as younger generations become more comfortable with digital transactions. Companies that can provide the technology and infrastructure for the metaverse are expected to reap substantial rewards.

• Navigating the challenges of interoperability in the NFT market and metaverse: Platform shifts like the NFT market and metaverse bring uncertainty for businesses, with some companies adapting, enduring, or emerging while others may be displaced or destroyed.

  The NFT market and the metaverse present unique challenges when it comes to interoperability and the application of digital assets across different platforms. While the intellectual property landscape in the digital world mirrors trends from the past 20 years, with brands and premium companies dominating virtual product sales, it's unclear which smaller or medium-sized companies will thrive in this new space. History shows that platform shifts often result in the destruction, endurance, adaptation, displacement, or emergence of companies. However, it's important to remember that even giants like Microsoft, which recognized the coming internet tidal wave, have gotten it wrong in the past. The future of the streaming industry, including the streaming wars, is also uncertain, with consolidation being a possibility.

• The importance of content, scale, and network effects in the streaming industry: Companies that deliver high-quality content at a reasonable price point are likely to succeed in the streaming industry. Strategic acquisitions can also make companies more robust.

  While companies like Netflix, Apple, Disney, and others have shown remarkable execution and growth in the streaming industry, the importance of content creation, scale, and network effects cannot be overstated. However, it's crucial to remember that these companies are ultimately in the business of selling entertainment. Despite their significant investments in original content, some companies have struggled to keep up with the competition. Apple, for instance, has seen extraordinary growth in programming and talent acquisition, making it a strong contender. However, the industry is becoming increasingly crowded, and consolidation through mergers and acquisitions is likely. With an estimated 5.5 billion people watching videos daily, the demand for streaming services remains high, making it challenging for smaller players to thrive. Ultimately, the companies that can deliver high-quality content at a reasonable price point are likely to succeed. Additionally, strategic acquisitions, such as Netflix buying Spotify, could make these companies even more robust.

• Netflix expanding beyond content into platform competition: Netflix is evolving from a content provider to a platform company, offering games, merchandise, and podcasts, but faces challenges from password sharing and competitors like TikTok, which offer alternative forms of entertainment.

  The media industry is evolving, and companies like Netflix and Spotify, which offer multiple forms of content, are poised to become dominant players. The shift from technology-based competition to content and platform competition is a common trend. Netflix, with its expanding offerings in games, merchandising, and podcasts, is moving towards becoming a platform company. However, password sharing and the rise of competitors like TikTok, which offer alternative forms of entertainment, pose challenges. The American appetite for traditional TV is decreasing, and TikTok is one of many substitutes. From his experience as a forest firefighter, the speaker emphasizes the importance of camaraderie, trust, and shared purpose, which are valuable skills in business and life.

• Last impressions matter in shaping perceptions: People's perceptions of us are heavily influenced by the last moments they spend with us, making it essential to leave a positive last impression in various situations

  The last few minutes of an experience or interaction can significantly impact how it is remembered. This concept, often referred to as the "algebra of happiness," suggests that people's perceptions of us are disproportionately influenced by the last moments they spend with us. Whether it's leaving a job, attending a party, or undergoing a medical procedure, the final impression can overshadow the entire experience. This idea was exemplified in a study where people felt that a longer colonoscopy, despite being the same procedure, was less unpleasant due to the additional time at the end. It's crucial to remember this when leaving a job or interacting with others, as making a positive last impression can lead to better relationships and future opportunities.

• Creating a bond through bedtime routine: The last five minutes before bedtime offer an opportunity for unconditional love and connection between parents and children. Cherish these moments to form lasting memories.

  Despite the challenges of parenting, the last five minutes before bedtime provide an opportunity for unconditional love and connection between parents and children. The speaker shares his experience of connecting with his sons during this time, despite his earlier frustration and difficulty in managing their behavior. He emphasizes the importance of communicating love and affection, even when faced with difficult moments, and encourages listeners to cherish these moments as they form lasting memories for both parents and children. The speaker acknowledges the complexity of parenting and the need for different approaches, but emphasizes the importance of maintaining a strong bond with children.