♪ emily: he has backed some of tvs biggest hits. 24, er, arrested development. then, he joined showtime and has led the resurgence in original programming. >> what we do has consequences. now, the executive has a chair at the top. joining me today on studio 1.0, showtime's new ceo, david nevins. thank you so much for joining us today. great to have you.

david: thank you for coming. emily: so, billions. what was it about this showed that made you think it could be a hit? david: it is a world that hasn't been explored so much on television. it touches all of our feelings about wealth and class, which is a hard subject in america. so this is very much in the zeitgeist and it deals with all of our complicated issues with the super wealthy. emily: you launched homeland and the affair -- when it comes to spotting a hit, is it all art? david: there is not a ton of science. first of all, it is some combination of who are you betting on? instincts about people, instincts about creators and the actors who will be able to grow

and create a role. good writing is at the core of it all. it is a good script that it's a good actor which gets a good director which makes for a compelling show. and it has some sense for feeling where the culture is right now. what people will sit up and take notice with, which is ever-changing. emily: is it a gut thing? has there been times where people have said -- david: we don't really do testing in any way. emily: really? that is kind of scary. you are taking a huge risk. david: it is 80 people, there is nothing scientific about it. i like to watch our pilots in different groups of people over and over. i learned that from ron howard. ron would always watch his movie with different people. and i remember the first time he showed it to me and i tried to be polite and say it was great,

he would not let me get away with that. he wanted to really know what i thought and where it lagged, where things were confusing. so you do this over time. you develop a feel. emily: you have recently taken over for matt blank, who was in this seat for many decades. he had this job longer than any other executive in television. and now you are on the business side. david: this is the rare orderly transition in this business. it is carefully planned over the course of the last two years. matt has been the architect of it. he has been great about it. he is now the chairman and i came up through the creative side, then the business side was very motivating. to become ceo at this moment, it is a really exciting time to do it.

we are now selling ourselves over the internet. there is a whole new way, we have a direct relationship with our customers. television has reached the top of the totem pole in terms of its place in the cultural hierarchy. emily: is this the golden age of tv? david: i think so. it is a reused term but how can you say it is not? television gets the highbrow conversation, the highbrow criticism and critiquing that you just couldn't do when it was not locked. emily: usc parodies of hbo, what distinguishes showtime from hbo or netflix? david: we are all doing very similar things. for better or for worse, the premium, high end area is where everybody wants to go.

so what distinguishes a showtime show? i wanted to be culturally relevant. homeland has things to say about america's place in the 21st century world. even masters of sex has a lot to say about gender and complicated relationships with sexuality. so, cultural relevance, entertainment value, characters with complicated, adult psychology. emily: some would say that you have all of these hit shows but you haven't had your major, major hit. what is going to be your game of thrones? david: i don't think you ever plan for the big hit. we didn't know what homeland was going to be. we are delivering consistent shows that people want to watch. i would love to have a game of thrones.

emily: does it keep you up at night? david: no. no. we have a lot of shows. so, you know, we try to figure out how to make you to make each one bigger than it is right now. emily: how do you view something like hbo? are they your nemesis? david: no. there is fx, netflix, amazon, hulu launching shows now. there is amc and one million people are trying to get in the game. generally, what is good for hbo is good for showtime. it is a complicated 21st century media world with a lot of people clamoring for attention and we have to stay at the top of the list and continue putting out

shows that feel like they have messages that will make people pay attention. even in the traditional universe, we are still only in 23,000,000-24,000,000 homes. almost three quarters of the homes in america don't have showtime. we have a lot of room. it is a moment of great opportunity. emily: how disruptive has netflix been to your business? david: they have seemingly unlimited amounts of money, that is a challenge to compete with. they buy our programming. so they are a customer. they buyer programs internationally. emily: have you ever considered throwing all of the episodes out there at once? david: there is great value in having the conversation

sustained over the course of a couple months. so i think the world is going to come back to a little more measured. although different shows have different ways. when we put twin peaks out, we thought it would be fun to do it in a different way. that is something i will talk about with david lynch. there are all sorts of possibilities. but the idea of throwing it out, having a week of buzz or two weeks of does, i don't think that makes sense for us. emily: how me people are paying for showtime? david: i will sell you, it has grown every week since we have launched. well more than doubled since

homeland and it has gone up again since then. emily: how many more seasons does homeland have left? david: well, it reboots itself every year. it is a new story and a new place. it is changeability and it works really well. i don't feel like we are at -- i don't know, exactly. but i feel like, three. emily: three more seasons of homeland? david: it is really claire danes, they will make a decision when she is sick of doing the show or playing that character. when they are sick of writing that show. do you think the story of america's compilcated place in the 21st century won't be relevant in 2015, 2019 and 2022? of course it will be relevant. this just a question of how long we keep going. emily: what has it been like working with david lynch? david: he is an incredibly efficient director.

he is now more than halfway through. he is kind of a genius. watching him work, i have been down to the set couple of times. the actors, i'm not allowed to say who they are, but many of them have worked with him for their entire careers. so it is really watching a maestro. i am incredibly excited. dare i say, genius? i don't use that word often. emily: a work of genius? david: i should not on wood but i feel like it will be really special. emily: what about china? this is a question that netflix is being asked all the time. ♪

emily: there are more scripted tv shows than ever before. there are also more canceled tv shows than ever before. are we in a tv bubble? david: a bubble implies that there will be a puncture and we will be down 25%. i definitely do not see that. it is possible to not succeed. microsoft, yahoo!, they went in and they went out. they decided after a certain amount of investment, it is not for us.

there will be other people and there will be shows that fail. that said, it is robust. the demand is there and the desire is there. we are in expansion mode and i don't feel like we have too much. if you ask a showtime subscriber, they wouldn't say that. they would say, give me another show. emily: is it scary that amazon can make a hit original show? david: anyone can make a show. whether it is a hit or not, we don't know until we know how to people are watching. emily: like transparent. we don't homage people are watching. david: it is a terrific show. i personally love transparent. so, it is scary and

democratizing. think it is good for the creative process and for the business. it keeps us on our toes. we have to compete harder and better and make this a creative home for creative people. what i like to keep up the competition? i don't really have that instinct. i don't look at the world that way. we will shut the door behind us and no one else can come in this club -- i don't think that is good for storytelling or creativity. for the consumer, it is not. emily: what about international expansion. i know you made a deal in canada. do you want to sell showtime streaming? in other countries? david: it has been a big push that we have been making, that i have been making. we have more shows that work in

the u k and france, compared to some of our competition. we made a big push starting in canada. then we did u.k., sky. germany, italy, we just did australia. continental europe. and the showtime brand is starting to mean something. so rather than selling our shows in a one-off way, billions is over here and dexter is over there -- we put them all together, same network and it makes a big difference. it is a factor of five and 10 times what were making. emily: what about the ability to sell streaming service independently? david: we haven't done it yet. there is such interest in premium programming right now that we made a decision in the big territories to sell. but we will see what happens. emily: what about china? this is a question that netflix

is being asked all the time. david: go figure, i think billions has a real potential in china. there are conversations going on and i'm hopeful that billions gets a real deal in china that will be potentially the biggest deal ever. in china. china is becoming a real market for us. as recently as when we were selling ray donovan, we sold it in there for pennies and now, there is a real real interest. it is the first major sale we have made in china. it is significant. emily: can you win the world without china? can netflix dominate without china? david: china has always been a terrible market for american television. piracy is rampant. you know, the movie studios figured out how to do stuff in china five years ago. now they are making real money

and i expect there to be a lot of growth there in the next five years. and i think we have spent a lot of time talking about china. emily: what about apple? what do you think is apple's future in television? ♪

emily: how did you get to hollywood? david: i just drove here.

emily: in a volkswagen beetle? david: in an oldsmobile. my grandmother's oldsmobile. i came out soon after college. it was actually when i was in scotland. i found a bunch of hard-core film geeks who would have given their right arm to move to hollywood and i realized, i have no immigration problems. i'm american and has an american passport. i can just drive there. and i did. i wanted to be in the movie business. it worked out well. television, in the turn between the 1980's-1990's, that was not the golden age of television. now, there is no place i would rather be. emily: you worked your way out. you have worked with ron howard,

your forked at fox, i am curious about network television in particular. since parenthood ended, and i know you were behind parenthood and friday night lights, i don't watch a single show on network television, except for the bachelor. which i am embarrassed to admit. david: don't be embarrassed. i love reality television. emily: what are your favorite reality tv shows? david: master chef, project runway, i was watching real housewives for a while. but then it made me feel bad about my masculinity. so i stopped. emily: it takes a real man to admit watching real housewives. what is wrong with network television? david: network television still gets big audiences. there are -- you can now, what is harder to hide five or seven

years ago, before people had really developed with pay cable and when there was a volume of premium shows, you can now satisfy yourself living over here with mad men and homeland and billions and silicon valley. you don't have to leave that neighborhood. but there are a lot of people who are very satisfied with the neighborhood that is the big bang theory, chicago fire, blackish -- interesting stuff. the networks are starting to innovate more. out of necessity. emily: should the cable companies be worried? david: they are under pressure to innovate. they are under pressure to

change the way people -- the way they make thgs available. and the way people are able to watch them. and serving broadband, that is where the growth is coming from. emily: what about espn? david: espn is suffering right now, the law of big numbers. they are still an incredibly healthy cash machine and they are trying to recalibrate growth. emily: what about apple? what do you think is apple's future in television? david: if you had asked me a year ago or nine months ago, i would have thought that they would be having tried to figure out their own version of a bundle. emily: what happened? why didn't it work out? david: i think it is challenging to put the pieces together with the content owners.

there were a lot of conversations going on about how and when. but apple is an incredibly innovative company and they make products that people want. there is enormous potential to crack the television world open. emily: in tv, could they end up being just a set top box? david: i think that is possible. they could also be a tv or a box next to the tv, there are a lot of different ways. emily: have you heard about -- david: the fight over the living room has not been set up yet. i don't think that has been decided yet. tv is a huge part of who controls the living room. who controls the electronics in the house? emily: what about the entertainment industry in general?

where is it in five years? what are you watching? david: you will continue to see the blurring between movies and television. you will see television shows, stuff produced primarily for television that will play in theaters. occasionally, and out of home collective experience. i'm already feeling interest and people are coming to us with this. when twin peaks is out, people will want to put that in theaters. so i see those lines blurring. but fundamentally, the movement is for bigger screens in your home. and that has been television's greatest strength. so the desire for great,, located storytelling, the

narrative ability to process constipated narratives, it is only growing exponentially. shows a getting more complicated and more sophisticated. it rewards good writing and good acting. i expect that to only increase in the next five years. emily: david nevins, ceo of the showtime network. thank you so much. david: thank you. emily: and for admitting that you watch the bachelor. david: it was never my favorite. ♪

oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals, micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come onrelive the era you remember so well.

the flower power cruise, february 27th, 2017. let your freak flag fly. don't miss the grooviest trip at sea. ♪ francine: joining me today for an exclusive interview is the ceo of an italian shoemaker. the company's products range from foot well, perfume to eyewear, and it is still headquartered in florence. michele norsa has been head of the company since 2011. we talked to the ferragamo ceo about his growth strategy and the future of the italian luxury

in a fashion industry. thank you for joining us. let's start the focus on asia. is there still chinese growth for the luxury market? michele: i have no doubt. the number of people who are entering the middle class, the average income of the people, the culture, how they have been able to develop very fast, from luxury, traveling, it is great potential. there is also the traveling aspect. there are more travelers, more curiosity. and changing destinations. they may be modifying spending behavior. francine: to adapt your

strategy? do you have to find out how the chinese consumer spends, how the chinese consumer travels? michele: absolutely. i am trying to understand where they travel and where they will go. there has been a clear evolution. from the beginning, only hong kong and macau were the achievable destinations. then you had australia, europe, and sometimes in mexico. a love of traveling. recently inside asia. francine: what surprises you the most about the chinese consumer? michele: the speed. francine: at which they shop or travel? [laughter] michele: the speed of evolution. they have been evolving from group to individual traveling. they learn languages fast. all of the journalists speak two

or three language easily. i have been adapting themselves to traveling conditions, and they get deeper and deeper , comparing prices. this is also an issue sometime. we're also getting nicer relations. before, with the staff, it was a little bit cold. it is becoming more pleasant. there is more to come. francine: there is a crackdown on bribery, or gifts related to luxury items in china. has it affected ferragamo? michele: in a certain moment, it affected everybody. you saw different behaviors in every area. in some months of last year in

the year before, you could see the streets empty. not many more people are carrying shopping bags. you can see the people, when they were asking carried in the second and first year cities, you could still see the normal behavior. even corruption was high. you could see how people from certain companies were not going to master or were not allowed. people were controlling their behavior. with the time going on, it meant a lot. this was related to more expensive items. francine: talk to me about the market turmoil. does it impact your sales? or does it make it better?

of this market turmoil that we saw last january, i am not sure how it translates into your sales. michele: it is not an immediate relationship with the stock market. there has been a lot of things about the number of chinese who are buying this, i don't believe there is so much direct involvement. i think the stock exchange is still closer to gambling and doing business. what you feel is the mood changes. this has been a mood towards hong kong, a strong impact, in a mood toward macau, travel visas, and in terms of growth of account, you keep finding everybody convinced about midterm growth of six or 6.2.

you see that kind of confidence. in the short term there are moments where it is more difficult. francine: there has been a huge fall in the price of oil. that affects most of the emerging markets that are producers of commodities. is that a concern for you? you are also very exposed to europe and the u.s.. michele: if we talk about asia, of course materials and oil has been impacting. you should think also in terms of consumption. they are not producers. if you take japan or china, there will be consumers. the political risks after some time impacting, they don't know if korea is far from us. very close to seoul, south korea, and major chinese cities.

these devaluation concerned -- francine: so much volatility. michele: exactly. they were higher last year. the currencies are moving reasonably. what is impacting probably is the size of the movement. all of a sudden of the sun you have a self-contained moving percentages. francine: are you brave enough to make a call on the dollar? it seems most chaste economists do not -- chief economists do not. michele: no. what is more interesting is trying to understand the challenges. there will be a lot of challenges next year. you can see the opportunities. it is very difficult to work with a time frame that is longer than six months.

working with the middle east, tel aviv and so on, it could impact every day the market, even the news about securities, cyber security, which can impact us. what is interesting is the challenges displayed in a good way. take the opportunity. francine: coming up, putting the digital into fashion, ferragamo fights against fraud with microchips in its products. ♪

♪ francine: welcome back. we are speaking to michele norsa. he is the ceo of ferragamo. it is the quintessential italian whose luxury company founded back in 1927. it was family-owned until it went public in 2011. from the opening of the first national stores the company has expanded to become a key player in the global industry with shops in over 90 countries. thank you for staying with us. we were talking about the challenges. you are talking about the opportunities, geopolitics.

what is the one opportunity you cannot miss? is there a target consumer you need to reach? michele: the most difficult is millennials. nobody is very clear where they start or finish, but roughly 2.3 billion people age 18 to 30, they are moving fast, spending money in a different way. francine: why different? michele: they are always connected and they are always comparing prices. at the same time, they behave conservatively. sometimes they buy products which have already been successful. this is what would be interesting to understand. also, the destination of how they will spend time. probably, leaping in a different

way, the other we will reserve for the future. francine: this is a game changer. how much do we know about how much they look at celebrities, how much they are influenced by what they see on instagram or twitter? michele: celebrity is something that always works. from hollywood, also the local celebrities, the people who have considered important in the asian life. you korean actors, hollywood, i think they are also moving the young people faster. this appears in the way they the

are spending, the places they are visiting and also traveling. they are traveling to resorts, not only to the big cities. they have a lot of background on where they're going. they could become better consumers than the generation before. francine: have you had to adapt your style? the fashion shows have changed calendars to keep up with this season we do not have anymore. we don't have the four seasons. michele: i am not in favor of changing the tradition of an industry like italy, you have to think of what this produces. e manufacture 100%. the pipeline, the project must be 100%. we cannot imagine fast fashion

if you just want to win back the consumer. people need to see new products in the store. every time they want to see something new, sometime you may have even products. products in the fashion shows may be ready in one month, two months. you do not need to wait six months. we have to change in terms of changing faster the store, inside the store, having more colors, having more alternatives, more sizes, more things in the same team, but different. francine: made in italy still sells. michele: absolutely. this is something more important. made in italy means sustainability. the younger generation appears to be careful on sustainability. it is manufactured in a certain

way, in factories that have very processes, end-user and colors and materials. even more important, you don't know where it comes from. francine: ferragamo has spearheaded the fight against fraud by micro-chipping the products. tell me about it. michele: in terms of privacy, we don't follow the microchip after it leaves the store. this is fundamental. we are not tracing the customer. we are trying to trace the product along the world. there has been a phenomenal force in pricing. trying to understand product be counterfeit product which could be mixed. it gives the consumer a guarantee that we do what we can do.

it often helps in closing stores, stopping operations, and giving the feeling that you are present everywhere. even in china we have favorable lawsuits. in the united states you can close hundreds of websites. this is the area where the cyber security is becoming -- francine: how much does it take up of your time? how are you worried about geopolitics, and understanding chinese consumer and fraud? michele: the consumer is probably the number one. geopolitics is number two. you must try to anticipate. you take into account what is happening. you do not want to gamble. counterfeiting, that is what everybody is following on the web. you're not concerned about finding a wallet in the market.

you are concerned about the web. francine: we talk secession plans, m&a, and financials. ♪

♪ francine: we continue our interview with michele norsa.

he has been at the helm since 2006, taking a public in 2011. he has just been elected to stay in his post until 2018. we continue with a look at the company's future. what worries you the most? i always talk about risks and rewards. you need to make sure you give back to shareholders. you need to put a succession plan in place. there is also speculation of being an m&a target. michele: the concern for the ceo of a family public company is to create value, but create value from a long-term. we are not companies running after the quarter or we are under pressure to go over turnover. what are you trying to build is

really sustainable growth. what we tried is to have the confidence of the market. from the beginning we believed we have been very open. we have tried to explain that we are still small. we are the company which is one third of one half of some of the major competitors. we have room to grow. francine: do you feel vulnerable? if you look at these big french companies, they are buying everything up under the sun. do you think it is an opportunity? how much time do you spend if you have to defend yourself? michele: i felt vulnerable with --until we reached 1.5 billion. i don't think it is big enough in terms of the potential to invest. the market has appreciated the focus of the company.

the most successful companies are not the groups, they are the companies focusing on their own brand. you have to know. you have to know everything for you to know the value of the company. you have to know how people move inside the companies. the evolution of the ceo. this is information you must have every hour. francine: you must have plans to retire at some point. how much do you think about your succession plan? is it someone from the family? michele: i don't want to say anything. the family has gone public because they knew the number of shareholders was getting bigger. when i joined in 2006, it was

imagineduld not have to stay as ceo for 10 years. as a ceo, you have to have more, to do more at the same time. it makes sense to think about somebody who is like you. probably on the other side, the ceos tend to be very centric and there is something you should do. doing it in a good way is also often the most important objective in your mind. francine: what you like about your job? you must love it. you have been at the helm for a long time. michele: i enjoy working with people in a global way. for me, the most interesting thing every morning is to open up and see what did they buy and what did they do? why are the chinese going to puket?

why you cannot change a new pair of shoes. we are in an industry that is evolving every day. working with people. francine: how do you do your research? do you look at sales figures? michele: i watch -- we have 380 stores. i watch the figures of all of the stores every day. i would go to the biggest one, definitely. at the end of the day, all of it, not so when i joined the company. i will call the ceos and try to understand why macau was doing well or not. this also creates pressure from the people who are working. they know i am looking and they must know themselves and you get

all of the information, the detail about the traffic in the stores, about the ticket. it is interesting to see how these consumers are spending around the world. francine: because it has changed? michele: no. it is too similar. what is surprising me is you can get a ticket which is five times and then at the end it is $50 or $100 different. it is surprising to me. i would have expected a bigger difference. when you look at large averages and they tend to neglect -- they tend to go. francine: it was a great pleasure to have you in the program. thank you. michele: thank you very much. ♪

oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals, micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well.

the flower power cruise, february 27th, 2017. let your freak flag fly. don't miss the grooviest trip at sea. ♪ mark: welcome to this edition of the best of "with all due respect". the latest results, each candidate to respond to the terror attacks in brussels and play in hollywood protect the u.s. against the islamic state. >> several made their case on this program.