tv Bloomberg West Bloomberg August 23, 2014 4:00am-5:01am EDT
>> from pier 3 in san francisco, welcome to the best of "bloomberg west," where we focus on technology and the future of business. i'm emily chang. every weekend, we'll bring you the "best of west," interviews with the power players in global technology and media companies that are reshaping our world. last few weeks, we have seen how powerful a toll social media is from heartwarming video to the isa bucket challenge to the protest in ferguson,
missouri. what about when stories are too sensitive? of theas been removed beheading of a journalist by militants. twitter said -- this is the latest example of social media companies policing from open internet policy many have embraced for years. i spoke with courtney radish, david kirkpatrick, and a law professor. was -- iis, hadar asked if there were any legal issues for social media companies policing user posts. is the firstpoint amendment which guarantees free speech as a fundamental right. over the years where it has been
litigation, mostly focused on video for children and the like and not so much on what happens in a real news. the freedom of speech is kurt held mostly on sex -- curtailed mostly on sex but there's a lot less litigation on a violence and in recent weeks, web and flooded with images from around the world. does the last series of images and we have seen from gaza and the ukraine and all of these raise issues that have not been extensively litigated. >> not necessarily illegal or legal? is that what you are saying? >> as far as first amendment issues or being charged with a criminal offense, that is what would be going on and properly covered. there may be tort law. afflicted or people
close to related to people seen dad or mutilated or ravaged on civilht have a legal claim against a newspaper outlet saying watching the image and having the graphic images out there have caused distress. >> there may be a great area. do you think there is a great area? if they are is going against the terms of service of each organization. youtube allebook, have their own terms of service and they are within their rights to remove content if it violates. i think the focus should be on caseorrific james foley and what happened and the deadly conflict and the need for journalists to be able to report without being murdered. it is the most deadly country
for journalists and of the world right now. >> it is such a tragic story. david, i want to ask your thoughts. we tried to read it the fine print and it can get a little confusing. twitter said they will remove images or video of deceased individuals and that consider newsworthiness and may be not be able to honor all of the requests. facebook said they place an burden on individuals to share responsibly. expect people to choose carefully. people shall warn their audiences about the content. youtube said they have clear policies to prohibit content like gratuitous violence and violent acts and they remove the video. you know, david, you are familiar with a history surrounding incidents like this. what do you make of what they decided today on twitter a youtube?
seems to be on new territory in not just removing the imagery but suspending the accounts of people who put up the imagery and even mistake of suspendedistakenly the account of the first journalist even though he never linked to the video. , those ofus gray area us reading the terms of service of twitter this morning, it is not clear they have been violated by this video except to the degree that someone's account should be suspended. it seems the family of someone who is deceased has the ability to request twitter tools imagery related to their death which is probably what happened here. suspended accounts go further and is really something that is being defined as we speak and nobody really knows how it is properly handled.
these companies have acquired influence over the dissemination arenformation and yes, they conduits for individuals to be empowered to share. it's a very complex scenario. facebook has clear rules that allows of the company to remove pretty much anything that it determines constitutes hate speech or is excessively violent. facebook has a lot presence to remove stuff. >> facebook, though, has been criticized for removing certain things and they backtrack. you wrote the book on facebook. how does mark zuckerberg think about these types of issues? all of these companies tended to air on free speech as much as they can. as was mentioned earlier, they have to consider their own legal liabilities. because so many of these are brand-new, technology never made possible in the past, they are responding on a case-by-case
basis. clear, definedl, policy that can be applied in every situation. it does seem like twitter is taking action of a sort they have not taken in the past. i'm sure there is no way you can find the symmetry on facebook. a 1.3 billion users on a service, no many -- and no matter how many out of the rhythms you have, you cannot stop everything the minute it happens. --courtney hadar aviram courtney hadar aviram, hadar aviram, david kirkpatrick. put in the controversy in ferguson had been prevented if more police were using technology? we will explore on the best of "bloomberg west." ♪
>> welcome back. i am emily chang. the city of ferguson, missouri may equip their officers with s.sts -- vest camera if a the officer who shot michael brown was wearing a camera, would it have prevented the shooting? doug ifd by asking ferguson police had access to these cameras and why they did not use them. and iis my understanding have not been able to independently confirm that ferguson pd may have been testing some cameras. in thebundantly clear last couple of weeks that there has been no video release that officer in question at the time
of the shooting was probably not wearing one of the cameras. >> you brought in a few things to demonstrate with us. what are the options available? there are many. now there are probably 10 companies, a whole bunch of companies working on these. international represented here. they're all good cameras. different types of options. this camera here would go on your body here and be held in a pocket. this camera here would probably clip onto your pocket here. this camera here, which i have lit up, it should be lit up. it is like that. >> light google, cheaper glass. >> it predates google glass. basically, you are capturing a on a mobile phone we
are showing you. the critical piece of this is feed is not for live consumption. it is how your camera is capturing, like this, making sure you are squared away. the only thing is you can go back and review an incident on your mobile device after it has happened. really good for training. terms of how it changes. i stumbled on reports that there are fewer incidents -- >> questionable incidents. >> or using firearms. >> there was a study in california probably three or four years ago. part of his academic study decide you want to analyze the number of complaints, sustainable citizen complaints against officers. if memory serves in that time of reductionor so, 88%
in complaints. the camera is on, so you will behave a little more differently. so will the subject. they know they are being video. you often hear, officer, i have video knowing you. are on tapeows we and collecting evidence. whatever is happening. custody.ain of it is not a secret. >> if at the officer who shot michael brown had been wearing this, how do think it would be different? >> most notably is what you have had one of twove things happen. if the officer was indeed incorrect and the assessment of the threat against him and was a bad shoot, there would've been video evidence and chief and others would've been able to look and say this what we are
going to do. we are going to pursue disciplinary actions and make a statement as saying we are taking a stand. the riots. if it was a good shoot and a deadly threat of does the officer, that would've been compelling evidence. he was being beat up. in fear for his life. a six foot four inch, 300 pound man. chris at least we would've known? >> we would've known. there would've been come hell and evidence. -- compelling evidence. >> there is a question of how much this would actually help. the camera has to be working and the officer has to turn it on. maybe in chaotic moments, you do not turn it on. maybe the officer resist. >> i hate to make broad generalizations. more often than not, the younger the office, the more inclined they are to embrace the new technology.
they know more about technology. and are accustomed to film their families and themselves. generally speaking, it is a generational thing. will get inton leadership and over time, we'll see the other option. >> tell me about the business. a human cry about the militarization of local police which i find interesting. what is the business behind? who is selling the stuff? how is it sold? why are police embracing the expensive stuff? least 10 or so companies, really good companies making great products. are thereprocess people out to their banking on doors. >> are they buying? which one yous on get. you can get a body camera for $200-$300.
the data storage. once you capture hundreds of hours, and that has to get into the chain of custody. that is another piece of the puzzle. the gear is self, when you look at thousands for the maximum of one piece of gear, it is -- $2000 for a 60 man department is not that big of an investment when you think about the frivolous lawsuits you are sadly out of court. >> isn't a rapidly growing business? >> i think it is. , you are roughly 15 or so officers wearing this on the streets right now. there's an 85% market for this to happen. cameras,ales of new they do great and occasionally you get into a fist fight. you might have to buy another one. >> cory johnson and editor in
>> welcome back. i am emily chang. google started trading as a public company on the nasdaq and sold more than 19 million shares at $85 a piece raising $2 billion in cash. it was not your everyday ipo. the founder almost got in trouble. --started with the words google is not a conventional company. when it went public, it did so with a dutch auction.
the shares have never fallen below the ipo price. and now close to $600 a piece. take a look at google's golden decade and what may be to come. ♪ >> over a 100 billion searches a month. 1.3 billion android devices. just some of the numbers behind google's staggering success. as a public decade company, they have grown from 3000 to 52,000 employees. 17 times the ipo valuation. google has become a fixture in popular culture. it has turned into a noun to a verb. on the move,me or
google products help people find where they are moving and see what their house looks like from space. zocor remains search -- the core remains search. u.s.have six and 7% in the and google is still not satisfied. , tohen i think of search really understand what you want and the world. we are very much in the early stages. helped google become a juggernaut. with all of the cash, they have branched out the big time. they bought youtube and grew it to the largest video site and android is the dominant smart phone platform. >> there are more than 1.1 million -- billion users. that number is growing dramatically. allegation of user tracking and scanning e-mails and manipulating rankings.
>> we are showing where data is being collected and given people more choice. >> awareness means sinking about the future and reaching for the stars. >> google x is about doing the brand-new, risky things that or sort of science fiction real. shots so-called moon include google glass and driverless cars and trying to prolong life itself. what a grew from a garage to the largest search engine has become a company searching for breakthroughs people have only drink of -- dreamed of. to threeson spoke former google employees who help to build key employees. the maps cocreator and former group product manager and ceo of shadow puppet and former coo of
ad knowledge. thoughtked ben what he of google. google was ago, really misunderstood. selling the things based on clicks and pricing and understanding the economics of digital advertising was something people were not used educate they had to market on how to think differently in terms of digital. >> you were there at the time of the ipo am bloomberg west was talking about ipo's and stock market. theas an amazing moment for world. what do you think the world thought of google at a the time? >> the company went public with less information. it was not a well-developed secondary market.
are doinganies multibillion -- multibillion financing and that was not available. it was the first time people saw google business. >> i remember i was covering it for another network and the numbers were phenomenal. incredulous.e they do not believe it could do that good and combined with the interesting model. pay per click was new. people were in disbelief this company was for real. oftook a number of years being a public company before people rely us it was sustainable and something for real. it is hard to describe how it was compared to now and how all of the private companies, they're so much knowledge about the financials. it was a really different time. >> carl, what were you doing? >> i was on the calendar team. one of the first applications google built. monthsd just a few
before the ipo and work. parallelsere so many and there was the story of how yahoo! owns a stake and grew it up. had a piece ofy the company and that was a lawsuit. launching the calendar business, that pre-stage, bigger plans to do a lot more and be in front of the users. was that the original calendar? >> googled was on a mission to organize the world's information. they had a broad vision. it was not just information you can find on the web but information that people had on their e-mail or calendar. at the time, there were not many a way that gave you unlimited storage. did you have a sense
that the advertising world was changing and going online and into search? time, people saw online as an interesting sideline. to give you a sense of how people did not take it, it was given to one person and maybe not the best person. it is not something that companies or agencies sad we have to get it right. see what happens. it really took several years for people to say, wow, this works. ks.i pay money to buy clic >> cory johnson with brett taylor and carl i am emily sjogreen and ben legg.
>> welcome back to the best of "bloomberg west." i am emily chang. majoras launched a campaign. the ridesharing app that is available in 44 countries and 170 cities announced the hire of david fluff -- plus. we spoke about the new campaign. it take a listen. >> this is about communication and policy in branding and strategy. we are weaving that together.
we are telling a story in the city that we're going to and getting the data about all of the good that we are doing and how safe the rides are any tens of thousands of jobs we are creating every month and the economic opportunity for drivers and making sure that cities understand the progress that we represent. >> uber opened up its app to all developers. with the senior vice president how the app works. >> we are allowing third parties hotet access to the uber form and the uber network so they can build into their mobile apps the ability to get an uber and price it and see how long it will take from their home to the restaurant or to the airport. all of those kinds of different use cases or apps all over the world. >> this is just the beginning. anybody can do this with you.
>> yes. we are starting today with 11 big brand launch partners. we are opening up to the dorm room developer and all of the company starting today in every country in the world. you're going to see this blur of ration start today and go for the rest of the year. >> you estimate that they combine 200 million users. how many of those users do you think could be new customers? >> hopefully, all of them. i am targeting a kind of different metric. today we are available and being used by tens of millions of users. hopefully starting today it is hundreds of millions. with new apps launching, we will be on billions of phones next year. >> there are talks about integrating with facebook and facebook messenger. >> when you look at what we can do, you be integrated into messenger apps and maps apps and
commerce apps. anywhere where you are trying to go from one place to another alone or with a group, messenger might be a part of that. >> behind-the-scenes, what is that like? >> it is deal stuff. launched corner store. this is something you're tested in washington dc, to deliver anything in the area. >> when you walk into a walgreens or the corner store to buy the collection of stuff you buy every day, what of the most used or bought items? we will put those in cars all over the city so that when you push a button they will be no more than five minutes away. >> when is this coming to san francisco? >> we are starting with d.c. first. we are letting the city teams experiment with ideas and then when they work, we refine them
and roll them out globally. it is coming soon. >> how about delivering mail? >> that is a good one. i haven't heard of that one. >> anything is possible. if seriously, you are trying all these different things. what sticks? >> i think what you will see from us in the next six months as allowing third parties to bring huber into their app. deliver things like corner store and then you will see all kinds of experiments. you've heard about startups getting funded that they are the goober for this or we are the number for that. we are hoping to be the uber for huber. save ubery first e-mail in california. there is a bill being voted on that would require more insurance for ridesharing which would kill ridesharing. you are asking people to write to there's state senators and
sign petitions. what is the response so far? had dozens of ceos of corporations in california and tens of thousands of consumers and tens of thousands of drivers addition there rep and the governor. seemsnce is not what it to be. it is quadrupling the amount of insurance a driver has to have relative to taxi. in california and everywhere in the country, we have the same or better insurance than any other taxi company in the country. let me repeat that. we have better insurance. this is looking to quadruple it beyond what we already have. tougher for the lower income consumers to use uber. apple stock hits a new high. is it deserved? we look if they are back on track. ♪
>> welcome back to the best of "bloomberg west." i am emily chang. apple stock recently soared to a new all-time high. forjump as investors look bigger screen iphones and a wristwatch that could be announced as soon as next month. are these products really the big things we have been waiting for? are they struggling to find other hit. i spoke the cofounder of elevation partners and an early investor in facebook. he is the first private asked woody fonda focused on technology. about innovation at apple. >> my issue with apple is not innovation.
that the software is in very good and they have made the experience less attractive and failed to recognize some of the opportunities in the cloud that's available to them. the stock is still a tremendous discount from the s&p 500. the fact that it is an all-time high is against the context being one of the cheapest stocks in the market. i love apple. it is so cheap that as long as the products can plug in and turn on, the stock is going to be fine. the real question is one of the going to wake up and realize that the cloud is the future of their world? their cloud product currently is terrible. it doesn't need to be. there apple. if they can get this right. think new is what matters right now. i think apple has a several things that went into the most current phone that are timidly
innovative. one is the fingerprint security. another is airdropped -- airdroppe. around, things spread they become much more viable. i think this generation will take that forward. early no longer in the days of cell phones. it is really hard to get people excited about a cell phone today. i think from their point of view, put out products and they will be great. even if they are only ok, they're still going to be good enough because the stock. >> are you saying they could be a lot better? icloudabout just getting to work equally well. >> i think we have all had headaches with it. >> i would recognize that they have two operating systems.
icloud is a third operating system. if they would treat it like an equal partner rather than subordinated to the other two, the market opportunity is as big as ios. it the cheapest stock in the stock market. if they focused on cloud, they would produce something really wonderful. >> what do you imagine they would produce? >> these devices have three really important pieces of data. they know what time it is, they know where you are thomas and they have your calendar. if you had all of that stuff of viable in the cloud, they could sit in a meeting and say you need to leave a little early because the traffic is really bad on the 101 and it will take you long to get to your meeting. these things really start to behave like arsenal assistance and anticipate what you need to because they know where you are and what time it is and where you are supposed to be. >> is that an animation
question? >> no. this is obvious. it is about execution of an engineering plan. the problem is that they are missing the strategic oink. the cloud is a standalone a business opportunity. original ipad. it only worked with max at the beginning. it didn't take off until they open up to the whole world. when they opened up to the whole world, they will take over the whole world. who wouldn't buy a cloud product from apple? the were dropbox, that is only thing that would scare me. they exist because apple has failed to get this right. a biggerle announces phone, is that enough? >> if the stock were trying -- priced like huber, it would be a big issue. because the cash generation is so high and there is so little
risk from a financial perspective, it doesn't matter that much. >> i want to ask you about uber. they have major regulatory hurdles. they are trying to navigate that stuff. think it is hotter than hot. how hot do you think it is given all the challenges they are facing? >> i think it is genuinely important. i think they have looked at a horrible inefficiency in our economy to short-term transportation needs and come up with an elegant solution. risk are huge forces at trying to protect old markets like cap drivers. -- cap drivers. will begulatory battle fierce. uber will when enough of them that it will succeed.
what is impressive about the company is it fits so well with this important trend of urbanization and young people in particular moving to city places where they don't need to own a car and they don't need to own a home. they are going to go to a very interesting personal balance sheet and get rid of the debt. they have student loan debt but they will avoid car and home ownership. by playing to that thesis so is going i think uber to be a huge company in 10 years. elevation the cofounder. we hear from the ceo of expedia about how the travel site rings and over 60 million unique visitors every month. you can watch us on your phone or tablet at bloomberg.com. ♪
>> welcome back to the best of "bloomberg west." i am emily chang. one of the leaders in online travel is this is expedia. they have over 100 60 booking websites in over 70 countries. cory johnson spoke with the ceo. he asked what the trends are in the travel industry. couple ofseeing a trends. one is the globalization of travel really favors expedia because we operate in 50 different countries right now. we are expanding internationally very quickly. we are giving our suppliers the ability to market themselves not only in their home markets but also in their international markets. we made big investments in technology and those are paying off.
bookingster we grew 29% on the year on a basis. this is on a big pile of bookings already. you touched on before, this is the mobile revolution. more consumers are going mobile and cross device. this plays into the investments in technology we have made. >> one of the things you talk about is international. one of the trends i have read about is unlike here in the u.s. where we have so many hotel chains, you don't have those internationally. a lot of the independently run hotels are just now getting online and providing opportunities for expedia. >> that is exactly right. these independent hotels previously could really only market through traditional travel agents and to a limited segment. they don't have brand budgets. system,y come into our they are instantly marketed to consumers -- over 60 million on
a monthly basis. we take their content and translated. we make sure the pictures are right. customer news -- reviews start coming in. have exposure to the global audience. that was never possible before the internet. we talk about technology paying off, your operating margins are declining pretty heavily. what is going on there? >> we think that we are trying to push topline growth. 29% topline growth, we expect our margins to come down. the most significant reasons why they are coming down is because our investment in sales and marketing. if you look at the business in the first half of the year, we spend $1.3 billion in sales and marketing. isn't something you can match.
the moregger we get, viable we become to our partners. if we can keep the topline growing and keep investing in is arand, we think that pretty good balance all across. in your 10ka line that blew my mind. it talked about the time that people spend online booking travel. the distance from the travel when they are on a desktop is days or weeks but when they are on a tablet it is less and even less on a phone. what are those numbers actually and what does that tell us about the future of the business? >> the numbers on the desktop on average is in the high single digits and teens. there is quite a bit of planning. there is significant forward planning. tablets tend to be more browsing
behavior. consumers love to browse on the tablet and often use the desktop for booking. mobile phones are very much about the last-minute. i am looking for a hotel. tothe old world they look up see where there was a vacancy sign. now they're looking that at their smartphones and they book and other smartphones. to the extent that the hotel your has a -- the hotel has a presence. they can book it. they are booking same day mobile only deals. it is a win for the customer as well. they get a great deal. the impact on hotels in particular when that window is shortened? there are more last-minute bookings. how do hotels deal with that? >> some need to get better at revenue management.
more risk in their book of business because more of their business becomes last-minute. they need to be very good in their revenue management. the have to make sure that they have got the right presence across the various distribution platforms. it includes brands like ours and other online travel agencies. it includes look at a new distribution platforms like meta-search. aching sure that they have presence across all the different big global platforms out there so that they are available to the global customer and across what forms as well. one of the interesting trends we are seeing with consumers is not only are they shopping mobile, they are shopping cross device and they expect the experience to be consistent from one device to the other. we are investing in new tech knowledge he like scratch pad where if you have done a search
>> welcome back to the best of "bloomberg west." i am emily chang. to mobile to big data, technological innovation is changing the hotel industry. tech startups like airbnb provide alternatives. new technology has changed the way hotels fill rooms. cory johnson checked in with the commune a hotel group to see the
cutting-edge of their hotel technology. there is something magical about a great hotel, a cozy bed, a beautiful view. it the real magic is technology. initiatives are completely remaking the industry. have rooms at any given moment. mediae hotels put social drawing return customers to the hotels. >> it is an emotional connection. >> a high-end boutique hotel group is a social media addict. >> we are monitoring 81 channels. there are five social media managers. they are assigned a per brand. they manage the flow of traffic.
>> if they see a customer tweeting that they just got hotel, the hotel will send them a bottle of champagne. travelers would stick with brand names. with the rise of internet booking, the boutique hotel business exploded. big brands are just 53% of hotels. arenology in the hotels still a challenge for the boutiques. >> it is hard for boutique companies to make that investment in technology and make the bet on the right technology that will be around in two or three years. >> tech driven chains are leading the best of hotels get back to basics. getting top dollar for the best user experience. , ourry johnson editor-at-large. that doesn't for this addition. you can catch us monday through