Voice and Video Demos with ChatGPT, How AI Could Redeem Meta’s Mixed Reality Bets, OpenAI Explores Hardware
Sep 29, 2023
auto_awesome
Podcast host Ben Thompson shares his experience with a ChatGPT demo, discusses Meta's smart glasses and OpenAI's hardware project, and explores the concept of celebrity bundles. He also expresses annoyance at Taylor Swift's presence during sports broadcasts and chats about mooncakes and their qualities.
Delta Airlines may have alienated customers with recent changes to its frequent flyer program, highlighting the importance of striking a balance between premium customers and filling up the back of the plane.
High fixed cost businesses like airlines struggle with balancing capacity, leading to either oversupply and low prices or overcrowding and high prices, emphasizing the need to carefully manage capacity and avoid alienating customers.
Airlines such as Delta face constraints beyond their control, such as regulatory policies and pilot availability, making it challenging to fully control supply and demand and highlighting the importance of considering external factors in decision-making.
Deep dives
Delta Admits Going Too Far with Changes to Frequent Flier Program
Delta Airlines CEO Ed Bastian acknowledged that the airline may have gone too far with recent changes to its frequent flyer program, admitting they may have alienated some customers. Bastian mentioned that the team wanted to quickly make changes but now sees they may have ripped the bandaid off too aggressively. The challenge facing Delta is to strike a balance between prioritizing premium customers and filling up the back of the plane. The concern is that if customers feel mistreated, they may switch their loyalty to other airlines, making it difficult to win them back once capacity catches up.
The Danger of Overshooting Capacity in High Fixed Cost Businesses
High fixed cost businesses like airlines face the challenge of balancing capacity to avoid oversupply or overcrowding. The nature of these businesses means that capacity often overshoots, leading to low prices and too much availability or high prices and overcrowded cabins. Ripping the bandaid off too far and alienating customers can have long-term consequences when capacity catches up. Loyalty programs play a crucial role in filling up seats and striking the right balance between premium customers and the broader market. Delta, like other airlines, must be mindful of maintaining customer loyalty while avoiding future capacity challenges.
The Potential Challenges for Delta in the Airline Industry
In addition to managing loyalty programs and capacity, airlines like Delta face constraints beyond their control, such as runway space, pilot availability, and lounge capacity. These factors depend on regulatory policies and other external factors, making it difficult for airlines to fully control supply and demand. Changes to regulations, such as the recent increase in required flight hours for pilots, can lead to a pilot shortage and impact flight schedules and pricing. Finding the right balance requires considering the interplay between internal decisions, external factors, customer satisfaction, and regulatory environments.
Smart Glasses as AI Assistants
The podcast episode discusses the potential of smart glasses as AI assistants. Mark Zuckerberg emphasizes that smart glasses are an ideal form factor for allowing an AI assistant to see what the wearer sees. The glasses could provide useful information in real-time, such as cooking instructions or settling debates. The podcast highlights the unique capabilities of smart glasses in seamlessly integrating AI into daily life.
Challenges of Physical Infrastructure
The podcast explores the challenges faced by businesses with large fixed costs and physical infrastructure, using Disney and Delta as examples. While digital businesses enjoy the scalability and zero marginal costs, Disney's theme parks heavily rely on physical capacity, which can be both a constraint and a delicate balancing act. The discussion delves into the limitations of physical infrastructure and the need to optimize customer experience while fully utilizing assets. It also touches on the potential of bundling real-world services with digital products to enhance customer value, as exemplified by Disney's discounts on hotel and park tickets for Disney Plus subscribers.
Ben shares his experience with a ChatGPT demo that inverted his expectations, a reminder that reducing friction is essential for AI’s next steps, and reactions to Meta’s Smart Glasses and reports of Jonny Ive and Sam Altman brainstorming. At the end: Delta follow-up, Disney capacity, and the Swift-Kelce bundle.
A Dame Trade Deep Dive With Ben Thompson, Plus Seth Meyers and Million-Dollar Picks — The Bill Simmons Podcast
OpenAI and Jony Ive in talks to raise $1bn from SoftBank for AI device venture — Financial Times
Designer Jony Ive and OpenAI’s Sam Altman Discuss AI Hardware Project — The Information
Emergency Podcast: Giannis, Heat Twitter, Depraved Suns Decision Making, and More Winners and Losers from the Damian Lillard Trade — Greatest of All Talk
Get Sharp Tech Premium, Sharp China, Stratechery Update, Stratechery Interviews, Greatest of All Talk and the Dithering Podcast as part of Stratechery Plus for $12/month.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
