>> rose: funding for charl ree rose was provided by the following: and american express. additional funding provided by these funders: and by bloomberg, a provider of m ultimedia news and information services worldwide. from our captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> let's see her, global temperatures rise a degree, what if we show a porno instead of the news. >> freddie? >> no, absolutely not. >> freddie, come on!

we're just brin storming here. we're trying to figure out how to make the news less boring and you ago like we peed in your milk shake. >> the news is supposed to be boring, run. -- ron, it's serious stuff. >> i just don't know why we have to tell the people what they need to hear. why can't we just tell them what they want to hear. >> nine years ago the world was introduced to one of its most beloved newmen. he was a well dressed jazz musician with an incredible head of hair, hi name was ron burgundy. ron burgeony and his new team are back in a new movie called anchorman 2, the lenl end stands,-- continues it, here is the trailer. >> in the 7 days they were an-- 70s they were an ali shall shall elite unit, brick, brian and ron, they rose like the phoenix and then they were gone. the legend became the new whisper, told by the trees. until now. >> we're starting a 24 hour

news channel and we want you. >> i'm going dot thing that god put ron burgundy on this earth to do. >> have salon quality hair and read the news. >> this feels right. the news team is back. >> welcome to the 80s, baby. >> is that your foot between my legs. >> no. >> oh. >> it was my hand. >> your hair looks like white popcorn. >> i leak the parts of your face that are covered with skin ♪ don't stop believing ♪ ♪ hold on ♪. >> look at him. he's a prince. he's not that great. >> what did you say. >> he said you're not that great. >> brick. >> oh. >> i don't read jet magazine or jerry curl daily. >> what are you doing. >> i'm breaking down the barriers of race by assimilation. >> i want to know which one of you convicts with the longest record can pass me the mashed potatoes.

>> am i right? say what? >> joining me now, for the movie, steve carell, david koechner, paul rudd and will ferr el. i'm pleased to have them here's table. here we are watching the trailer and you guys are still laughing. >> it's ridiculous. ron is ridiculous. >> it is such a good idea, why did it take so long. >> these guys were really stu been. >> hard to get ahold of. >> had other jobs. >> had other jobs. >> i wanted nothing to do with it. >> you were into drama by now, aren't you. >> comedy prepared you for the big role. >> i have a pretense about me now.s and if you dare stick my toe back into that world -- >> the germ filled pool.

>> exactly. >> gives you schieffers. >> i mean, you know, it's no comedy, so truly, now did you have to be convinced that you didn't want to be just another sequel? >> well, it's-- i mean you know, of the movies that i've done with adam mckay, cowriter and our director. >> was supposed to be here. >> had something else happen. we just never thought about ever doing sequells. we were just always on to the next story and we were more excited about that. anchorman though was unique in that made it nine years ago t was a modest hit. we felt good about it, felt like we had done kind of a new style of comedy. and then it just sat on the shelf and over the years just grew and grew and grew and grew in popularity. and we would all get together in passing, and have the same comment that no matter what project we

were working on, whatever we were talking about, the last three questions of the interview would be anchorman related. are you going to do a sequel. what was it like to work on. and we would always compare notes that this thing is so popular. and i think in the best possible way, it just kind of woke adam and i up to the idea of revisiting these characters and why not. it's the most fun movie any of us have done. >> rose: agreed. >> easily. >> agreed. >> rose: what makes it that? >> i think everybody understands the tone. we're all going for. and everybody, these four gentlemen tend to work as a true ensemble. no one is trying to do anything but make the scene as best it can be. >> and adam and will who have been in a partnership really since "saturday night live", kind of work in this way that is all inclusive, and really open to everybody's input. and it makes for a really, really fun set. >> rose: why do you think it grew in popularity.

why were people constantly comeless back to it, because you've done some other very good things, talladega, for example. >> it's funny because i had heard from friends when it first came out that-- hi friends who loved it right away. one of my best friends from college went on a double date to watch it opening weekend. halfway through, the other couple left. they just said we're going go. we don't quite get it. i know he's your friend. it's not very funny. call us later. and just left the theatre. and so i don't know if you guys had heard some of those things. >> not that severe, but yeah. >> so kind of left of centre i dop know if people kind ofnd stood it at first. >> no, i don't think they did. >> i often hear that people didn't think it was funny the first time. but then on subsequent viewings were just enamoured of it. >> i think people discovered jokes they had missed the first time. an one of those things they watched 2, 3, 4, 5 times and upon those repeat viewing

they just felt just such ownership to the movie and the characters. >> rose: on dvd i'm told too. >> yeah, i guess it performed remarkably on dvd, charlie. real good. >> do we have the numbers? >> now here's the thing though. it's so good and it's so, so part of the culture, did you not need to market it this time. >> right. >> i wish you had told us that three weeks ago. >> it's kind of bizarre. >> in its defense i have to say-- . >> rose: the marketing or what. >> in the marketing's defense i think it's remarkable because so much of it has been on will's shoulders. and he's been going out in character. and you told me a story that, you know, you were at this one event where you weren't sure, you weren't aware that you were going to have to do 45 minutes of improvisation, it turned into a press conference. and that's a daunting task. and the fact that will has been ab to pull that off

in character, i think is a real testament to him. and it's made it i think more fun and more palatable for people. because it's been entertainment all the way along. >> rose: it's been great from "saturday night live" and everything. >> i'm pretty sure we'll be nominated for a marketing award. >> the markey. >> rose: nobody's in second place. >> we'll probably sweep the markies. >> rose: but how many dodges do you have now. you have earned a lot of dodges. >> i am still waiting for one, yeah. >> rose: sticky subject. >> rose: you got to watch -- >> no continuation i don't have one. bad news, bad negotiating on my part, i guess. >> rose: go stand in line. here is the movie, it begins in san diego, you're doing something. >> right. >> rose: these guys are doing something. >> right. >> rose: new york wants you. >> yes, we get an opportunity to come and join the gnn news team.

>> rose: cable news. >> brand-new idea, 24 hours news which ron is very skeptical of. but he, you know, it's a chance to redeem himself. and they get to come to new york, the big stage, and we just thought what a perfect backdrop to throw these guys into. >> rose: so what is brick doing when we come to get him. >> brick's deadçóçóñr. i think that pretty much sums it up. >> at the beginning of the movie brick is dead. at the end he is not dead. that's basically, when i read the script i thought okay, here's my character arc, i start and i'm dead. and then i'm not. >> rose: benjamin button. >> zombieland. >> rose: . >> from the office,ñrçó it's likeñi benjamin button inçó reverse. >> rose: that's what it is. and where is brian. >> brian santana is a very successful cat photographer.

>> the best. >> if you gave-- not just-- . >> rose: if you had a cat and wanted it photographed, call brian. >> absolutely. you need to make -- >>-- describes him as a certain way. >> as the quincy joneses of cat photography. >> by the way, thank you for that. i mean-- . >> rose: that's the outfit. >> nothing but hits. >> you got i hate mondays. probably hang in there. >> hang in there. >> you, in fact, had the most to lose. >> yeah. >> you had an empire. >> i had an empire and i gave it up like that. >> rose: when ron calls, you go. >> that's what i'm saying. >> sure. >> champ has a chicken restaurant. but not exactly chicken. >> he's serving rats. >> well, bats. he'll serve anything. he doesn't care. he's serving things that are deep fried. >> anything that -- falls in the freyer. >> we think maybe a raccoon

fell it in one point. >> we are like you know what, fur is off, let's go, chop that thing up, bread it. >> you see another animal, oh, there's a lot of meat on that thing. that became a running joke throughout the entire shoot you kept pointing to things asking -- >> would be good for your restaurant, cook him up. >> was's the ratio of meat to -- >> yeahñi,ñr yeah. >> so where's ron, our boy. >> well, ron, ron is announcing the dolphin show at sea world. and ineven rated and he even-- he is about to call it quits, yeah, about to call it quits. and freddie chap played by dylan baker comes in and he's the producer who saves these guys. >> rose: so you go to new york. >> go to new york. and where they find out quickly that they're going to be on at 2 in the morning. >> rose: i know what that is like. you know that. >> they're not happy.

>> are were you happy? >> yes, i was. i was happy to have a job, you knowment but i didn't have any comedic 258 ent. >> yeah so, they are given the graveyard shift. and have to figure out a way to get viewers. and they stumble into developing basically infotainment. and all their bad instincts are actually bringing viewers. >> because ron complains why we have to tell them what they need to hear. why can't they tell them what they wantñiñi to hear.ñi >> yeah. >> it came from an honestçó place. >> they don't need to know the news. we'll just tell them what they want to see. >> yeah. >> and theyq suggestions. >> brian santana pitches showing porn. >> put porn on. >> that will do it. now who is jack. >> that's played by-- that's james marsden. >> rose: he's god. >> he's god. he's rumored to be making a million dollars a year.

he's come in to be the kind of lead anchor. and he's of course terribly charismatic. >> rose: king of anchordom. >> yes. and the guys are immediately enamoured with him. >> we're ten, we're smitten. >> rose: you like him. >> an he turned on me. >> more than. >> how you could not be in a way. he turns on me for about 100 across the room. he senses cow ard is and ron is immediately on his heels from the beginning without even saying a word. >> really. so we have to deal with him. >> rose: ron has a romantic interest too. >> he does. linda jackson whoxd is our boss. so now they're really thrown into it because they have, they've never had a female boss. and because the '80s, cnn, incredible amount of diversity inñr the newsroom atñ( so very capable, intelligent

african-american woman is now their boss. and ron and her at some point, not initially, have some romantic interest. >> rose: now characterize how ron burgeonee in this movie thinks of himself. >> well, exactly the same as the first one. >> rose: never died. >> because i think that's the beauty of these characters is they don't really evolve in any way. in terms of their attitudes. yeahs, he's still-- he's still assured on the outside. i will have to say though that they're now on this big stage. they've never had to compete. there's all these new teams now competing for time slots am and he realizes that maybe he's in over his head. >> yeah. let me take a look at the clip. show me the first clip. >> mr. burgundy we're starting a 24 hour news channel, first of its kind. >> gnn.

>> that is without a doubt the dumbest thing i've ever heard. you mean news going 24 hours around the clock, a channel that is never off, in other words,. >> yeah, yeah, 24 hours. >> no offense but you are stupid. >> i assure you we are 100% for real. we've got state of the art facilities in manhattan. >> this is your first week's salary. >> by the highman of olivia newton john. >> what dow say, ron? >> i'll takeçó theçó job. and i swear i'll be number one again. i'm going to do what god put ron burgundy on this earth to do. have salon quality hair and read the news. >> rose: that's it. >> that's his mission. >> rose: tell me about the wriling of this, and the writing, you and adam. >> yeah. >> rose: the twoñiñi of you. >> the two ofñi us, this one was slightly different

becauseñr we had, when we started outlining it, we had a lot of things going on at the time so we had a a locker outline process and i went away for the summer so we actually took the outline and split it in half and he wrote the front part and-- and merged it together threw a lot of it out but some of the scenes stayed in there from that first pass. and then but we did kind of our usual thing. we'll throw every idea out and kind of distill it down to the script. >> rose: but the script is, i'm told relatively detailed. >> yeah, it is. >> rose: is that right. >> definitely, oh, yeah. >> rose: it is not like the wing it. >> we get a lot of questions about that, whether it was all improvised, and it wasn't at all. the script is very tight and really, really funny. and so it is a little odd there was improv involved but the script was very, very detailed. >> i remember the first script i thought it was so

great that we shouldn't change anything. i honestly thought we can't beat these jokes, why are we even trying. but i think what happens is it changes the acuity because you know you might improvised so you are dialed in a little harder but these guys are so magnanimous because they are available to, whatever you want to do, let's just shoot it we might get a gem. >> rose: yeah. someone wrote it had the spirit of "saturday night live". >> i could see that. i mean, you know, that obviously informed us having worked on that show for so long and loving the ensemble of sketches, you know, i think that's what appeals to adam and i comedically, i think for all of our films. it is much more exciting for an audience to see multiple funny characters as opposed to just one. >> rose: is it different working with somebody who has comedic experience. >> it's nice when are you working like this, and that everybody can, i think, well,

one we've worked together before in the past which is kind of nice. but you understand in a way that it isn't always just about the joke. sometimes it's about setting up the joke or being able to kind of lob, you know, the pass for somebody else to spike it. and i think that if you are working with people who have a similar comedic sensibility, it can make the day go quicker, easier. you can really discover some things that are-- . >> rose: because it's hard to teach comedy just from a text. >> i'm still trying to learn. >> i think it's impossible. i don't think you can teach it. >> rose: you have a born instinct for it or not. >> well, i think the only thing you can do is say prank faster. i believe that. i remember working on a, on something before and there was a person, male or female who kept saying having trouble with this i just said just do it faster. in fact, maybe just look in

the mirror and do it fast. because this person was tending to go slow. so just faster. >> rose: it worked. >> well, i saw this person go down the line and ask another per$çnñr, another person oh, okay, whatever. if iñr just said faster that would have done it. >> rose: . >> i think-- i don't think you can teach someone to be funny. you can make a performance funny. some people -- >> i think-- everybody wants to be the -- >> it's working. >> come on. >> how cruel can you be. >> everybody wants to be -- >> more of a placebo effect. >> you always have it. >> you can imagine actually having a comedy teacher on set. >> wow, okay. >> you need to go up at the end because tas's funny. >> it is interesting because i think we're all asked by people wanting to learn and

coming up, like come on, what are the shortcuts. what dow really have to do. and you already know that if you are asking me, you don't have it. >> because there's no-- its because there's no, it's not a linear approach, it's just about getting up and doing it and failing. >> rose: now is social commentary in this film, are we saying something about america and news, and what happened to it. >> scathing social commentary, really, and really, i think at the expense of comedy. >> you know what, that-- if we can get one person to vote, then this movie has served its purpose. >> i think so. >> social commentary will-- kill comedy. >> i think if you put too fine a point on it, you know, you don't want to overwhelm. i think these guys have struck a beautiful balance between the absurd and the

satirical. and there's-- there are both elements in this. i think it's really smart. and it takes very intelligent people to write something like that. >> i'm serious now about this. were you actually thinking about where is the right balance between the absurd and the satirical or are you simply sittingçi there saying we've got this circumstances, how do we make itñi funny.ñ was this, is that as we thought about all the potential landscapes for this sequel, the one we kept landing on was 1980, the beginning of 24 hour news. and once we made that choice, ultimately we're trying to make a funny movie. but once we go to 24 hour news you can't help but to comment on what is going on right now. and we also thought it would be funny and satirical to have ron burgundy be the one who discovers that you can put a car chase on the news even though it's not news.

and but-- but the audience likes it. and i think the audiences fortunately laughing really hard but also going wow, you do take some interesting little shots here. which is, it's great to kind of do both. >> rose: you also were able to get a whole bunch of cameo appearances in this movie, even kanye west. >> yes. >> rose: how do you do that? >> good question. thank you for asking. >> i just got caught up. >> so you go to kanye and say-- my movie, kanye and you're not singing, you're just here. >> and you find out that he is a huge comedy fan. and you find out that he is a fan of a couple of our movies.

and you kind of throw it out there. and lo and behold you hear we like to talk to you guys on the phonement and you have a conversation. maybe two changes in the room, maybe he's not. but and you know, he's game, and comes and wants to play. >> yeah. >> but i'm surprised, he seems to me like a guy beyond all the sort of over the top stuff he does, he wants to learn stuff. >> absolutely. >> he's damn good and he got there because he wanted to learn stuff. >> yeah. he was there asking all of us questions and. >> he was --. >> you just said go higher. >> i didn't say a word. i said awe so he also was working the entire time. >> he's prolific. >> honestly, we're sitting, we're not shooting.jwjust?; bs, what did youñi havexd for lunch.

every day. >> constantly working. >> my point. >> making anchorman 3. >> i think he wrote half of it. >> that's what he was doing? he was writing the third one. >> he's like i'mñr sorry.çó i only have 50 pages worth. >> he's going to call you and ask if you want to be in it. >> i have to audition for it. >> that's right. >> which i'm happy to do. i'm excited for theñrjpopportun. >> anchorman 3.ñrñrñrñlixd añiñr cameo. >> there's less than açóñiñi 500 chance you're going to be in.ñi >> less.ñi >> but i would love for you to read. you guys are fineñi.ñi >> when kanye says you're probably not go og to get this but you have to audition anyway. >> we're going to go with matt damon. >> you know what, i couldn't blame you. >> i couldn't argue. >> he's amazing, he's always good. >> but you got everything you wanted in this movie. you made the movie you

wanted to make. >> oh my gosh. >> you got harrison ford is in it, for god's sake. >> and you know, we just, we really wanted to take a big swing. we wanted to make it feel epic. we wanted it to not feel safe in any way. and like steve was saying, it gets incredibly absurd at times. >> rose: push the envelope. >> yeah, yeah. we didn't want to hold back. >> rose: yeah. dow feel like you're making an epic. >> oh yes, and a classic. because if you don't feel like you're making a classic when you're doing it. >> why show up. >> then you're-- that is the worst. >> if it's not a classic i'm to the going to show up. you know i just barely show up anyway. i'm just half there inside is this. >> rose: but if it is epic you give it your best, you are there early in the morning and the last to leave. >> internal dialogue this is an epic. i'm showing up, full body.

>> rose: i'm giving them everything, i will leave nothing on the table. i will be exhausted at the end of the day. >> how much did you change the script once you began making the movie? >> i don't-- we didn't change any of the scenes it's a tough question to answer only because we would have to go scene by scene to let you know, oh, these three jokes came up on the day. this was the same. so it is-- percentagewise. >> oh no. >> what are we thinking. >> rose: what do we think? >> 30, 32%. >> about 32%. >> yeah. >> rose: that's what i thought. >> but every day we had-- we had a line-by-line accounting every day at the end of the day, always the same, 32. 32%. >> rose: this is from ron burgeonee one. anchorman 1, take a look at this. >> you really want to know what love is. >> yeah. >> yes, tell us, more than

anything in the world, ron. >> well, it's really quite simple. it's kind of like gonea find my baby ♪ ♪ gonea hold her tight ♪ going to grab some afternoon delight ♪ ♪ my motto has always been ♪ when it's right it's right ♪ ♪ why wait until the middle of a cold dark night ♪ ♪ when everything's a little clear never the light of day ♪ ♪ and we know the night is always gonea be here anyway ♪ ♪ thinking working on my appetite ♪ ♪ looking forward to a little afternoon delight ♪ ♪ rubbing sticks and stones together ♪ ♪ makes sparks ignite ♪ and the thought of loving you is getting so exciting ♪çó ♪ afternoon delight ♪ñi.ñi >> you guysçó haveñrxd it i think ♪ñci ♪ afternoon delight ñi ♪.

>> i don't know, ron. that sounds kind of crazy.ñi+h >> sounds like you have mental problems, man. >> yeah, you gotñi mental problems, man. >> yeahñi, really does.ñi >>ámn ♪ñrxdñci afternoon deligh ♪. >> going t call here to freshen thisñr up.r >> one take. >> rose: remember? >> oh yeah. >> yeah, we had-- we sung that on the set. >> that was ah script. that was not in the script.çó >> yeah.ñi >> when you went to thexd studio was this a hard sell. >> the first one. >> no, the second one. >> no. >> rosh2buw3 the budget you wan. >> no. >> rose: i didn't thinkñr so. >> that part was hari. >> rose: because you were making an ep eck and you wanted them to know, we're not just making an odeñiçó movie here. >> well, that, it wasq about, it wasçó just very lowaw& considering where everyone is in their ca(- and a lot of time had passed. so yeah, it took some back and forth to kind of get it to a place thatñr we could all .

>> rose: did you andñi others take a cut in paéprg orderñiçó to make this happençó, isn't that right. >oh, yeah. we wanted to do it because -- >> he didn't.ñi friction.ñiñi >> we're the only one was did. >> to be in this? >> iñi mean honestly,ñr from the first, from theñiñr first yn a second one, we were all onñ!,& board, completely. and noñi matter what anyñi of >> you could have said yeswrtho- i a script. >> absolutely. >> rose: is it because the first one was s)jsu(r funçor because you just love will and adam or what. >> all of it. >> yeah. >> it was soçó muchñiçó fun.ñi weñiñi love themñi, love each we love being a part of that first one. weçóñi knew that they wouldñr write something that was going to be reallyçóñi fun to be in. and funny to watch. so we had complete confidenceñrñrñi and faith. nowñr lookñi where we are. >> i think the first oneñrñi, the first one wasñiñi so kind oi major,ñi for all of us it was

such an important partñrñ;of our lives i thinkñiñi professionally and personally it wasçó a reallyñi great experience. >> yeah. >> rose: so but what makes it a great experience. >> well, i remember working on that moé in the firstñi0@6h& one thinking i condition believeñr a studio isñi giving us money to make this movie. because it is so different than anything else that's being made. and it seemed to be kind of so sim patçóçó cowith my own kind of thought of what is funny. and i think we all felt that.ñi and soçó when we wereçó working on it, youñi know, separate from thinking will this beçó succ we all felt wellçóxdñ7 we think this is funny. and that was such a thrill to work on something and have that kind of feeling. >> rose: when you sit down, when you and adam sit down, and you laugh.ñi >> yeah. >> rose: dow generally find those in other words, is your instinct as to whatñi is funny always the same or are there times in which you say it falls a little bit flat and other times you didn't expect it to go so good.

>> exactly. it's always that balance of you know, come upçó withñr something. we haveñi tears in our eyes an we're like i hope other people think it's funny because gosh this is funniment and then oh, we were right. or oh, that did not work at all. but when you come at it, that guides you when you are editing the film. and for the most part yeah, you're really trying to please the audience. and once you get the film kind of in the shape that you want it, then you can go back and forñi about 120% of it chuck things back in that audiences didn't laugh once but we secretly love. >> rose: so let me go back to san diego. you're married to veronica. >> yes. >> rose: and was itñi harrison ford whoñi you know, veronica is -- >>ñiñiñi yeah.ñi >> rose: and ron,çóñrñ'li you're gone.ñiñr >> you'reñi the worst newsman i have ever seen.ñi]an andmy ron tries to argue his point. what did i do wrong.ñi and we gor of ron sneezingñiñrw3 on the le,

shouting the news co0 because it was written inñr all capit air, things like that. >> rose: soñi you when you get this new york offer, you either go or stay in sançó diego for the love of your family. >> right. >> rosxy >> oh, ron takes the-- yeahñrñii he'sñi in new yorkçóñr andñrçóçi goingxd toñyr prove that he belongs there.iññ9 and win back the love ofñrñr his-- his wife and his child. he nowñi has a child al&kññrñr soñixdçó-- there's a lot theñi stake. >> rose: but he's going do what he was born to do.ñré->> rx and read the news oz s otherçóçóññdñi question --ñi >> what's goingñi to beñr quotek have no idea. >> rose: you don'áq[gnj >> because we didn't haveñi any idea the first one would be quotable. >> rose: do you have an idea, steve.ñr >> no iñi really don't.ñiçó i mean look f you had gone to the marketing department for the first filmñ

i love lamp is going to be a highlyñr quoted line, they would have looked at you like you'reçó crazy. >> rose: what do you know. >> or ifñi you said i need to youñi print up 100,000 t-shirts that say milk was a bad choice. >> a line from a character that in the first round ofñr studio notes, their suggestion was to get rid of the brick character because he doesn't make any sense.+mñi so. >> rose: that was the studio note.ñi >> that was the studio notes. and we said weçó kindñi of have a hunch this character will work and thank god we fought for that. >> rose: you can show your appreciation. >> oh, i do every day. no, i, you know what,ñr honestly, being inçóñi this was probably theñiñi big point in my career of anything. being cast in this moviez. >> rose: anchorman 1. >> yes, because from this i met juddñiñ worked together onçó 40-year-old virgin it lead to so manyñr so i have will and adam, all these guys to thank for all

of that. >> rose: an same for you paul. >> absolutely, i met judd on that steve and iñiñi workedñr it wacr the launching pad i think for all of us. >> it's been an albatross for me, but look, i'm-- crawling out from under it. it's-- it's been following me. >> rose: there may be a time that you can take, take the weight off your back. >> exactly. >> rose: gives you a chance to loosen the chains, take a look at thisñi, this is flavor of this film, when ron witnesses a touchingñi moment between veronica, his wife whose's estranged wife and his new love interest linda, hp-q it is. >> i had to come tell you something very important. you must be lynna jackson. >> you must be veronica. >> yes, i am, pleasure. >> this is a touching momentçó for me. >> please, don't take this the wrongñi way but if yougptoul shoot you with añr bebe gun.

>> oh. you can talk big all you want, but guess what, this kitten has got claws. don't mess with me linda because this white rolls deep and it rolls nasty. >> i was feeling a little bit down but this is definitely pick up my mood. >> well, i guess i'll leave you two alone and it's been an absolute pleasure miss corningstone. >> this has been great. >> dow guys wantñi to kit a little bit. >> ron, leave the room. >> he has the amazing capacity of turning anyñi situationñi into its worst kind ofñrçó-- version, yeah. >> that's go the to be great. >> that's why it is so much fun to play. >> rose: and itñi is if i would assume, you know exactly how ron is goingdkjpto-y and exactly how to go there. >> an that's a perfect example of-- we just had their encounter written. the whole game in my head was how would ronçó just really ruin thisxdçó moment,ñr y inappropriate things theñiñi whole time. and suggesting that they

kiss. it's just wonderful, really. and christina improvised that read the room, ron. but that's why it's a joy to play ron burgeonee. he has no responsibilityñr about anything. >> rose: jr mean ito? just great thoy writing or just to know that you know him. >> yes. >> rose: i mean you have a-- you have a model that you can just, you know, take anywhere you want to go because you know where he!3 goes. you got his motor. >> yed thank you all for coming. great to have you here. so fabulous movie, you know. >> feel better, take care of the pipes. >> rose: i will. maybe iú an anchorman. >> i don't know. >> rose: probably not. >> talk to kanye about the3

>> rose: anita elberse here professors q. business school. her new book is calledtlek# risk-taking and the big business of entertainment. i am pleased to here at this table for theçó first time. welcome. >> thank youçó, it's a pleasure to be here. >> rose: let's just get the theory out o the idexi is that it's in the economic interests of studios toxd focus on a few blockbustersx$páher thanñr a whole lot of films that might find a niche audience or a smaller adultñr audience. >> absolutely. and not just studios. ñ think companies acrossxdñi the diffdpentñrçóñrñi entertainment sectors, so film studios but also television networks and bookçó publishers an music labelsñi andxd teams an leagues the idea is that they should dedicate a, a the majority of their resources to what they think are thexd most likely winners. the largest share of their production budget and the largest share of their

marketing budget. they should be willing to go all in. >> rose: it reminds me of a story told to me and others about steve jobs when he came back the first thing he did is he had all these products that they had. and he basically said içó think we're going to have four main products. that's whatñr we're going do.çó we're going goñi like hell on >> exactly. that's an example i gave tow because i don't think the blockbuster strategy as i call it is necessarily limited to the world of entertainment. you start to see it more and more in a wide range ofñi0@6hcj& different sectors. >> rose: give me the other sectors now, the exampleñrs ofñi it.)3icj& >> as you say apple, much more focused than anyone else on a select few products in its portfolio.ñi the other example i give is victoria secret, the way they market their products. everything goes, is have focused on the victoria secret fashion show absorbs a large chunk ofúios advertising budget in a given year. and they have their angels which in a way are the superstars that we see in many other sectors.ñrñrñi

anothwr example iñr give is the world ofñi night life where we see big blockbusterñi betsñiñi on a big, big clubs that are aimed at getting scale so that the clubsñjr can afford djs that are the superstars in that domain. so that's another example. >> rose: builds on itself. >> yeah, absolutely. and another company that i think lives and dies by the blockbuster strategy is red bull. very much a media company even though they were in the business of producing beverages and getting us to buy energy drinks. and then even burberry, so an exale-- example in the fashion show, when i spoke to angela, she described her company as a digital media company. this is a company that we know as the company that sells trench coats. >> rose: what did she mean by that. >> i think what she meant by that is they are in the business of forming connections with customers. they're in the business of telling stories. and they're in thes in lee in the business of selling fashion goods but in the business of making sure

consumers love the brand. that storytelling aspect is something thatñrñ)rñr entertaint companies know a lnv about. theurç audiences listen your stories throughout the year. >> rose: and more and more compani[3÷ are buying this idea, you think? >> well, i would hope after reading my book, yes. but we, ixd thinkçó youñr see it more and more. and it certainly has caught on in the entertainment space where tenñr years ago ifñr you said the blockbuster strategy, there was a lot of hesitation.çóñi and particularly when it comes to on-line companies,ñi the googles of this world for a long time lived by the long tail strategy. they said we're going to beçó making sure that we invest in a way, in a large number of very small products, niche products. they bought this idea thatñi0@6& the long tail was the future of business. and if you look closely they're allñi shifting gears. netflix is making bigger and bigger blockbuster bets than ever. basically mimicking the strategies. >> they spent 100 million on the house of cards.

>> yeah, mimicking the strategies of networkñr television. and i thinkbm== advertising business that it'sñr really very, very difficult to manage these long tail assortments an it's all about the hits. >> but that was not always the theory because after reading long tail eric schmidt famously said, you know this is theñr future and google isñ >> yeah, absolutely. he's coated-- quoted on the cover saying chris anderson insights are significantly changing how we're thinkingñi about our business at google, absolutely. >> he also said recently i would like to tell you that the internet has created such a level playing field that the long tail is absolutely the place to be. define what we mean by long tail. >> so long tail, the dwrd thereñr is that in the oldñs@6h& worldçó, there was onlyñi a limited amount of products thatwvu&d air. >> right. >> or would make it into retail outlets. and the idea is that because of the internet theçó barriers of entry are lower,ñi and0

a far larger assortment. so the long tail is$p wasn't room, inñi traditionalñió storesñi but for which thereñi is room in on-line channels. so all videos on youtube that don't make it on television, or all singles in the i toouns store that wouldn't have been carried by a traditional retailer in that space, that's the long tail. >> this is what eric said after saying that the long tail is absolutely the place to be, i would like to tell you that the internetñçó is great, that the long tail is absolutely the place to be, that there is so much differentiation there is so much diversity, so many new voices, unfortunately heñr says that is notñi the case. >> right. >> so what happened to call eric schmidt to change his mind. >> i think he saw that the long tail is a very, very difficult business to run. and what you see if you study these markets is that theñr majority of products in the tail it is açó veryçó long tail so,xd anderson was right about the supply tichlted-- side. i think he was wrong about

the-- he said if there is that supply, i think whatçó netflix andñr youtube an many other businesses are figuring nowadays that is not necessarily the case and having to carry that assortment that hardly has any appeal to consumers is very costly. i give in the book an example for the music industry where of all the tracks that sold at least once in 2011, which is 8 million individual tracks, sold at least one copy, a third sold exactly oneñr copy. >> a third. >> a full third of all products that were available in the marketplace. and 94% sold fewer than a hundred copies.ñi someone who is makingñi them available to us consumers. and that comes at a cost. and it might be a minute out cost but if you multi fly that by 8 million are you looking at a significant expense. >> what dow make what beyonce dhf in announcing her newçó record. >> i thought itñr wasñai fascinating. with the book in that there's much more focus in the music industry now on

the opening week. it's really all about getting as manyñi sales as possible in a relatively short period success breed further success. so that's very much in line with what i discuss in the book. what is different of course is that there was very little build up to it. and i think it goes to another aspectñiñi ofñi book whh is the sheer power of superstars in today's world. and beyonce is the only one or is part of a select few that can pull somethingñi likeq this off. this is notñr, if hi released my book the way beyonce has released her album no onewould , right so this is something that superstars with large followings on-line can do, but that's not something for the rest of us. and i think what has been underestimated is the amount of partnerships. like the sheer depth ofñr partnerships that would have toçó comexd into play to do a release. >> okay but there is also stevenñi peopleberg who a uderen or big meltdown, 3 or 4

megabudget movies will go up, crash into the ground and they will haveçó to change you don't believe that. >> i don't believe that. >> that goes against your theory. >> i think he is an extremely talent-- talented filmmaker. >> and lincoln didn't make that much money, i don't think. >> no, but what we've seen. >> a lot ofñi publicity and attention because of steven and danielle and the idea. >> i assume it did well but just not a blockbuster. >> absolutely. i think what we're seeing is this was one of the if not the most successful years for the box office f you look at the revenues it outperformed every other year it was añiçó veryñi busyñi year. >> rose: and that's because of a lot of blockbusters. >> yeah, i would sayñr it's the blockbusters that areñr generating most of the money. you see they have the highest rate of success. done mean it can't go wrong it can go completely wrong and all of a sudden you have a lone ranger which say big big loss for disney. but by and large it goes well and it's actually the smaller products, the 20 or 30 million dollar movies

that's where the failure rate is the highest. >> rose: what is the difference in lone ranger, and johnny depp and the series of movies he did about the caribbean. >> i think it'sçó really hard toñi say exactly what the difference is. we can look at the end result and say well, the pirates movies are just better movies, higher quality, that he peelñi to audience that is pretty easy lookingñ >> rose: same actor. >> it is incredibly difficult to make a good movie. it is really, really complicated process. >> rose: that's why there are so few of them. >> i think going in, you can look back%d say that they take a risk, yeah this wasn't necessarily the mostçó established franchise. but going in t had a lot of elements. and making a fill well johnny depp seemed axd no-brainer because everything else that he had touched in the past had gone terrificably well. i don't blame theçó filmmakers >> rose: do you know whyçó it wasn't successful? >> why it wasn't successful, i think just has to do with the quality of it. >> rose: just the-- it

wasn't well done. >> just the fact that-- and i think there was also a very strong negative campaign around it. there was a very strong neglectment-- negative sentiment from reviewers and it was probablyñiñi something. influential. >> in this particular instance there was so muchçó buildupçó throughout the summer where people were waiting for the first ig, big blockbuster to fail because of these comments that had been in the press. and it wasn't just spielberg, it wasçóñi soderbergh before him as well. so i think everyone wasçó@z waiting for this big failure. and it was very hard for the studio, i think, to stop this negative sentiment that was around lone ranger. >> rose: you know, it's an interesting example is take cbs. when they get a big hit in a television showñiñiñiñr, that's block bust never terms of being number one on a particular night, and in the top ten for the weekñr, consistently, they will spin it off and spin it off and spin it off. >> yeah, they're building franchises around existing hits, what you see, this is particularly strong in the

television industry, one hit generates a number of other hits because of the way the scheduling works income you have a big hit on a sunday night then you launch your most exciting property alongside it and people stay.ñiñi because we know that there is a lot of sticky viewing so in the television industry to have one hit tends to lead to subsequent successes, or at least puts you in a good position. >> rose: how did you get to know him. >> i got a call from one of the people in his team and they said do you know who alex ferguson is. and i said yes, of course,$zbecr fan. and then he said we like to meet you. would you be interested in meeting him. >> rose: that's exactly what he said to me. >> great, yes. so i saidçó yes to that. >> rose: i did too. >> so i knew who alex ferguson was. and i knew of his amazing track record, there's no one in thisñi sport like him. there is no one whoñ one club and before that was very successful with aberdeen, actually which is much overlooked, i think. so i knew about his record.

and so from the get-go i thought this might be a chance to understand what made himñi soñi successful and to learn from his experience. >> rose: so what did you find out? >> well, we've captured eight lessons in an article that was-- very successful. one of the most clicked on articles, i think, over the past few years. >> rose: do you think that is because everybody wants to find out if there is a silver bullet for leadership and management. >> i would like to think it has everything to do with my name. i'm sure it is all sir alex they are clicking on, unfortunately. but yeah, i think it has-- i think there is a combination of wanting to understand what made him so successful amount of lot of manchester unitedñi fans tt are interested in that. but generally i think thereá is thisçó idea that we can learn from coaches. because what they are doing is managing and leading teams. and this probably a lot that transfers to other sectors and other industries. >> and often leading people who are highly paid and might not be manageable under normal circumstances.

>> absolutely. >> he also knew how to take care of them. >> absolutely. it's the very issue of superstars and all these creative industries that might be difficult to manage that have all these opportunities that can go somewhere else and make more money.t& manage. >> rose: in the end what did he have? >> so it's extremely divi any to put your finger on it. i think one of the things that i've noticed and it'sñi so hard tonb put on paper. in everything that he does, he's a winner. he just doesn't accept defeat. and it doesn't even enter his mind that he could possibly be losing until he actually has lost and then he accepts it and he moves on. >> what is your next case study. >> i never talk about next case studiesment because if they are inñi developmeét"you never know how it will end up. so. >> what are you waitingñr for. >> what i look for are interestingñi problemsñi andçód companies that are outperforming their competitors. just recently did a new case on vogue which i thought was fascinating just because they are so dominant in the

world of fashion. and i as someone who doesn't quite understand fashion have always been intrigued by this notion that one magazine has such an impact on the world of fashion.ñi >> what did youñr find out? that is a very carefully cure rated process whereby i think they're very,ñiñi very mindful of the brand that they have and everythingçó they do is in line with that brand andçó is in line withçó maintaining that position that they have as the authority which is an incredible -- >> they also have an instinct for the glamor. they know who to put onçó the cover of the magazine. >> yes. >> i thinkñi that if you are's a creator of a television show or a magazine, or you have come in an changed a magazine like "vanity fair", carter knows his magazines better than anybody. he knows his audience better than anybody. he knows what they want better than anybodyñrñr is anybody before, he

understands most people really are the best that i know, understand audiences or they are customer sent rick so they understand who has psyche of their own, people who are going to be attracted to their product-r >> yeah, absolutely. >> they know how they want glamour, how they want certain a authenticity.f-->> ab. the other thing i learned in the vogue case is they very much live and die by a blockbuster strategy. >> we mightçó not thi it.çó >> that is personified by cover. >> yes, and by the issues. so for them the suspect and march issue is the entire year is riding on those. so that is not that different from a movie studio that says here are our event films in which we invest the majority of our budget so that strategy that that carries over into the world of magazines was actually quite interesting to me. >> that is also determined by season it isñr obviouslyñiçód the-- magazine in cement. >> yes, it's by far the big nest terms of the number of

advertising pages. and that in itself is probably $100 million business just that one magazine. >> since your focus is primarily on the world of entertainment andñi sports. >> yeqw >> why that for you? >> well mostly because i think it's fun and as an academic i get to pick my own topic. i was looking around and didn't understand why all my colleaguesñi were picking these boring tomorrowics. and i'm fascinated by the world of ent tanlt. i love these productsñr myself. i love the movies. i love mix. i love reading books and i figured there is enormous challenges that wqi asñi business school scholars don't really understand. noñvuanne knows what is the best way to make these investments or how to pick winners. so i figured that would be a good fun area to specialize in. >> why did you want to go into the academy. >> why did i want to become an academic. >> yes. >> well, mostly because, i went into it as a ph.d student becauseñrjvá.tj.u me that i could go to theñiñió u.s. for free if i wentñr intoñr ph.d program and if i would

do a masters then i had to pay it all by myself. coming from the netherlands those amounts that you pay is, like those are staggering amounts coming from a country in which you hardly pay for education. that is the hobbest story that i thought this would be a good way to spend a year in the u.s. and then i loved it. i loved doing research and i loved truly understanding how markets work or how businesses work. and i also loved the teaching aspect of it. and atñi the harvard business school where i teach case, i teach the kinds of documents that i develop after having gone into the field. i getñr to discuss what i think with a group of 90 of the most talented studentsñ and i get toçó learn from them on an ongoing basasu >> about their curiosity or what? >> their brilliant insights this book is really a combination of everything that the students have fold me over the years and very little of it is my own original thought, right. these are the insights i

gain from teaching these cases over @ >> rose: the book is called blockbusters hit making,çó risk-taking and the big business of entertainment. anita elberse, thank you. >> my pleasure, thank you. >> rose: thank you for joining us. see you next time.ñrñiñrçóñi captioning sponsored by rose communications captioned by media access group at wgbh access.wgbh.org

ack . this is nightly business report with tyler mathisen and susie gar ib. >> brought to you by street.com, our rating service provides objective, independent ratings daily on over 4300 stocks. learn more at the street.com/nbr. flying high, investors start the week in a different mood, with the momentum continue? we have big investment ideas for 2014. the economy, apple strikes a deal with the world's largest carrier, china mobile, opening up a massive new market for iphone. what it could mean for iphone sharwh