tv Bloomberg West Bloomberg January 7, 2014 1:00pm-2:01pm EST
companies and media shaping our world. our focus is on innovation, technology, and the future of business. samsung unveils a new tv that ends at the touch of a button. the launch may be overshadowed when michael bay abruptly walks off stage during a presentation. close are evan siegel and mark zuckerberg? it is a professional relationship but not necessarily that welcoming. and pandora's growth is music to its own ears. the company targets very specific users. lead, fitness trafficking -- fitness tracking headphones, we can barely keep track of all the stuff coming out of ces. it is a comedy of errors stealing the show. he reportedly said he wants to
see macklemore. he has been giving fans shout outs on twitter. michael bay had a meltdown when he apparently messed up an introduction of samsung's new tv and the prompter couldn't catch up. jon erlichman at -- jon erlichman was there to catch it all. i feel bad for michael bay after watching that. that was a little painful. you talk about crashing parties and presentations that don't work out. after those late-night parties those presentations don't work out. this is the reverse order. the presentations are going to go smoothly, not all of them can go smoothly. those who did not see what happened with michael bay on stage yesterday, we are going to play you some of this in >> i try to take people on an emotional ride.
-- >> how do you think the curve is going to impact how viewers experience your movies? >> i'm sorry. i'm sorry. >> you have this event this year, last year we were talking trying tosony ceo display some of the sony technology and a little bit of a boo-boo there. it seems like a recurring theme. >> michael bay actually -- it seems like he felt pretty bad about what happened. he blogged on his personal website, -- let's talk about the serious stuff going on. there is a lot of stuff coming out of there. as a whole new range of pretty interesting stuff in what can you tell us about the highlights?
companynk any large that is here, it is not just trying to tell you about the latest product, they are telling you about what the company is capable of doing. in the case of intel we know they like to build all sorts of stuff. wey are trying to state that want to be powering these new devices. that was very much one of the key areas for intel. we will have some of those comments coming up. the other story is a story of survival. you have companies like blackberry here, not so much on the show room floor but to let people know what their strategy is. people saw the commentary on bloomberg west. the idea of this company shifting its business back to focusing on business and government and less on the retail consumer. the thing we have to think about is this is a company that is also dealing with a whole host
of factors, competitive factors here on the floor. blackberry it has sued them. we had a chance to speak with the ceo of typo we may be up to pray that to play some of our interviews. >> we were there two years ago. we sat there and talked about it. hand and said let's go develop this. we came out with a product to .ake this work did >> what was the toughest part of going from there it -- the bluetooth chip and the
module had to be miniaturized. we had engineered the keyboard we wanted a product that worked for us. that was a benefit. of the goal was to have something you can type superfast on your iphone. >> the folks at blackberry are pleased about this. a decided to sue you guys. you said we have 44,000 patents, let's make use of them. what is going to happen with this illegal factor? >> we did do some research. we don't believe we violated any patents. we are going to vigorously defended. guys have patents tied
to this technology? >> we have applied for one patent. >> this is a business that you both are basically backing. is it a shared ownership thing? >> we are friends. he has had it on his phone for a year. it madeit so much that sense to take this to the world. it worked out very well for the both of us. >> i was the ceo of this company , which is taking on blackberry. going back to our interview with john chen, we did talk about a lot of stuff. in terms of devices and how we should be thinking about where this company is going, here's more on what he had to say. >> i think there was enough leaks in the market that -- i'm not concerned -- i'm not going to confirm or deny it.
i personally love the keyboards look at you will blackberry going forward to keyboards, i would not use the word exclusively but predominantly. was john chen of blackberry. i will send it back to you. >> looking forward to much more. coming up later we are going to be talking samsung. whate going to tell you you need to know about it coming up.
it is gigantic. they have signed contact deals with amazon and netflix. apparently it gives you a better viewing experience when watching at an angle. have you seen this thing? >> some of these things. i wish you were here. we could place you next to one of these televisions. stuff is getting bigger. is it getting better? let's talk to the vice president of strategy at samsung. he is kind enough to join us here. let's start with televisions. people talk a lot about curved technology. is big and curved better? what is the benefit from all that? , we think 2014 -- >> we think 2014 is going to be the year for high definition tv.
on top of that, curved is coming. we see it offering a lot of consumer benefits. it is easier to see is a group to watch the whole tv experience. 80% of consumers say they preferred curved tv experience. >> the difference between -- in the past people have purchased tvs that are .lower how does that affect overall strategy? >> it used to be the lifecycle of tv purchases. now we have seen a cascading of tvs. the number of tvs are going
steadily up. there is still a lot of adoption. we think as long as we are still innovating, as long as there are benefits to consumers and term of picture quality and experience of a smart tv. -- of the smart tv, then the market will continue to grow. >> have you found any problems with samsung device owners? is it that much easier to get them into your world? them a very much. -- >> very much. they're finding a lot of traction in the samsung galaxy series. it is a new lineup of professional tablets. starting from the size of the tv, these are all different screen sizes.
>> the devices are cool but people are only excited if they have cool stuff to watch. you have a lot with the cable companies and players like amazon and netflix. where do those partnerships become the most important? at what point do you have to be able to offer more and more people? dot kinds of partnerships you feel are talking your technology? to get a new technology going. we did it a few years ago to get hd launched. ofannounced a number hardships. we will be bringing a new video pack. when you buy a new big-screen tv
, you can get access to that content from day one. we will see a lot the content companies bringing their great content, either a native for katie -- native 4k uhd. down at the presentations are often very polished. the press will jump on the ones that are less so. a lot of people are talking about what happened with michael bay. samsung works with a lot of wary -- lot of very well-known stars and celebrities. any lesson learned from yesterday? a blog post yesterday evening. he said he had trouble with the teleprompter and could not keep up with it. we are happy to work with him. had anrds we announcement with him, we are partnering with him on uhd cont ent. >> last year we spoke about china as a market.
i think it's time we talked about it being a top-5 market for samsung. important in a lot of business growth. we don't just see growth in china. the u.s. economy is recovering. this is a good year for us in north america. of the divisive -- we cannot even talk about all the appliances -- we did not even talk about all the appliances. you devote the time and resources to say this is a priority? family like to work from the consumer bank. -- >> we like to work with the consumer bank. we are at different segments of the market. the new series of tablets to address professional needs now that the market for pcs is
coming together with the market for tablets, they are trying to get insights from the market. appliances, home understanding what consumers want in their kitchen. by theto be driven consumer, that is why you see some equal products. >> thank you, always good for your time. i will send it back to you. >> we will get back to you later. haveg, mark zuckerberg may offered a few billion dollars but it is safe to say that offer is probably off the table completely now and siegel publishes some of their private messages. we'll tell you about it coming up. ♪
snap chat turned it down. now this. i would bring in sarah frier, who covers facebook and snap chat for us. >> evan spiegel grew up with a very privileged life. it doesn't seems like he cares what the consequences are of what he decides to do. he turned down the $3 billion offer. whoever notes -- who knows if it will ever be worth that again. deciding to post a public screen shot with one of the most powerful's -- powerful people in tech, who is a very private person -- >> i am dying to know what mark zuckerberg is thinking right now. he made it clear that mark zuckerberg made the first move. if you are up for it, let me know and we can go for a walk around facebook headquarters.
evan spiegel writes back, "thanks coco -- "thanks." he sort of made it clear that he will meet him, but only when it works for him on his home turf. >> there were cover stories on evan this week. >> tell us about that. >> he basically told forbes that she was acting tough with mark. >> and then he tweeted part of the initial message, which made evan spiegel -- made good and tweeted the whole thing. >> people were saying he was -- >> it boils down to immaturity. >> a little bit.
it is an image problem but it is also just being out there in general, which is good for a start up if you're in the news. >> i can't believe we are talking about. click think about the last step week -- >> thing about last week with the security breach. they cannot apologize to their users and they had plenty of opportunity. even fixed the issue a little late. to behat is going to have careful because if they think they're going to be worth more than $3 billion down the line, -- maybe it is time is time for leadership training. information doesn't need to be here to say and people say it is just a fad. he should have taken the $3 billion. do you think the offer is off the table? >> i think he is playing rough
right now. note made it clear he does want to be acquired by them. who knows what is going on in private. them a maybe he apologizes in private, who knows? thank you. it is time for on the markets, a look at what is moving in the markets every hour. julie hyman is in new york. to me there is less market in the market -- less drama in the markets -- tell me there is less drama in the markets today. >> that is fair to say. if you take a look at stocks, yes we do have a rally after three days of decline. not a lot of for -- not a lot of erratic moves or drama. basically stepping back after those down days. in terms of individual stocks that we are looking at today, the second-largest swiss bank fording off its efforts
them a this is the early edition of bloomberg west. you can also catch us at our later time. for your top headlines am a president obama says extending emergency unemployment benefits will give them vital economic presidentpitted the made the remarks after the senate advanced a bill that would restore the emergency benefits for 90 days. needs finalll passage in both the house and senate. jetblue is adding 19 extra flights to get back on schedule after suspending operations in new york and boston yesterday. they are expected to be back on a full schedule in 90 minutes.
frigid temperatures caused delays in the northeast and midwest. and american skier lindsey vaughn is officially out of the upcoming winter olympics. she decided to have surgery on her injured right knee. leaves sponsors without the most visible winter athlete. and the app store is as addictive as ever. customers spend $10 billion and the app store last year. one billion dollars spent in december alone. i want to bring in adam, who covers apple for us. it sounds like a lot. >> it is a big number. they did not disclose a dollar figure. $3 billion in apps in december -- 3 billion apps in december alone.
>> any idea what the most popular paid apps are? >> they are main games. kraft -- minecraft, heads 2. cute the the rope >> how much does revenue actually matter to the bottom line? they make most of their money on devices. when it comes to market shares it is never a sure thing. how big of a revenue stream is this for them? >> it is not insignificant but obviously they make most of their money by selling these devices. they take a cut of every sale. when you put that dollar figure on it, it is not insignificant. .t is certainly not as much >> it is definitely very
significant to developers. i did leave developers may something that i believe to the clippers made something like $15 billion. -- i believe developers made something like $15 billion. >> the success tends to be consolidated around the most popular ones. there are a lot of apps that do not work out. lot out there that are not as good as others. >> how would apple pay its developers compared to what ubu and microsoft has been trying harder and harder to develop for -- >> apple and ugo in terms of the app ecosystem -- apple and google in terms of the app -- statistically people are more likely to spend on apps on ios versus ugo. that versus google.
versus google. >> thank you so much for that report. hott homes are one of the topics. a lot of the major players are trying to connect the home but there is a startup that is trying to be the most user- friendly and open of the mall. we got inside one smart house. take a look. >> it looks like a mansion outside of las vegas. 'going to go inside and talk to a guy who is bringing the home of tomorrow to us today. demo what is smart things providing? , it is the time of the internet's. we take advantage of technology
to make things simple and accessible. >> i can lock and unlock doors over the internet. >> it doesn't take a professional. we are also an open platform. up possibilities. >> here is how it works when you wake up in your las vegas bed. say you have smart things in your house. you push a button on this wristband and it will start a bunch of systems in your house. >> the beauty of how simple we made it -- the hard part is not opening the app. the house knows what is happening and response to your needs. >> a motion detector is going to trigger and give me an daily update.
>> good morning, we started brewing the coffee. i will start playing the local news now. ways there other system can be used? >> smart things can detect when you leave. all the sensor suddenly become a security system. say there was motion on a front could play aos prohibitive sound. >> there are a lot of companies here. are you expecting to see here in las vegas this year? >> i think this year it is an example -- is when we go mainstream. it has become easy enough and inexpensive enough for anyone. >> bloomberg businessweek's sam
>> will come back to bloomberg west, i am emily chang. investors seem to be pretty happy about pandora's new strategy. shares have hit an all-time high. this is after pandora announced it would provide ads only to toteners in car specific people driving or riding. jon erlichman is on the ground at ces in las vegas. why did it take so long? >> it is funny you should ask, i am going to ask one of the guys who made that a reality. emily's question was the process
of getting to a point where you it say -- you are using , andra, -- using pandora there are specific ads. walk us through this process. talk about the road it takes. >> the added partners are ones that are very familiar with radio advertising. they are able on -- able to understand the importance of using that captive audience in the automobile and adding on the targeting layers. opportunity.iguing >> it is not like flipping a switch. facebook talked about ad revenue. pandora in a way is doing that.
probably a switch. >> we have been building this audience for years. we have not had ads in through december 31. now we introduced advertising in automobile experiences. we have more than 4 million integrations. we have an audience scale and a in -- data that works that works. >> when you say that, you are saying the number of automobiles -- he road >> there are a lot more that are enabled. 4 million have gone through the connection of making the integration work with the phone. it is not just having pandora enabled but also -- >> and really using it. >> last year we announced 3
million. this year we across -- this year we crossed 4 million. >> we have new announcements on how many new cars and services are available. what is the difference between being available in a car and something that people are going to use in a car midway? >> in available is harder than you think. it takes years of working with the automobile manufacturers and making the integrations work so that time to music is as short as possible. that is the reason we spend so much time doing that. it has been really effective as to why we have seen integration increase of quickly. it is not just about making it available. automobile makers care about the experience for their users. it takes engineering resources, time, effort to make sure those on hundred 30 models work seamlessly. >> as of december your hours are
up. listeners -- all these metrics giving you checkmarks. what is driving that? is that because more people are using pandora? >> the car is a piece of that growth. we have seen tremendous growth over the last year. it is through continued growth in the mobile devices. platforms are seeing growth. that comes down to having high- quality products. is big for you to be here. you're going to talk to always device players. >> it is critical to be here. ensuring we are here for the long haul and ensuring a high- -- they're going to be proud to have pandora on their screen.
we develop the actual integrations and we are really seeing momentum taken. >> we asked other players whether it is apple or another. the most recent news to come out is spotify came out with a free streaming service available for mobile devices. in your own numbers, what has happened since that announcement? users were very strong. they were really unaffected by that announcement. our service is about providing the best music experience. the best personalized radio possible has the motivation to make our product the best one out there. we see other competition come along and most of them have other note -- other motivations whether it is a premium model or to enhance their commitment to a hardware profile.
the best musict we can possibly play for our consumers. that is winning so far. >> may be more talk about, we will see. talk oh -- more taco bell. we will see. >> john, we will see you in a moment. where about technology is all the rage this year. tracking your health, fitness, and much more. we will talk more about that next.
>> the smart service maker has come under fire as subsea road temperatures hit the midwest and east coast. owners have taken the social doia that's -- you can social media, complaining nest is not working. in a statement to bloomberg west, nest says the issues are affecting a small percentage of customers and is not related to a recent bug. variable in the and clogged air filters. we will continue to follow that story. back to ces, wearables is the huge theme there. outerlichman will try
anything he can get his hands on. take a look. of googlee heard glass and samsung's smart watch. we are entering a world of wearables it here at the consumer electronic show there are a lot of wearable devices. i figured why not wear myself out. this guy is the wearable camera. if the inside talents light has changed or if i change my speed. it can take new pictures when i make those changes. rate.ne measures heart it knows when i am ready to work out. workout it i did a will tell me to wait. -- if it knows i did a workout the day before it will tell me to wait. this has an emergency but should -- emergency button that will alert somebody that i am in trouble via gps.
i can send a text to our producer micah. for five to 11 years old --- year-olds, you can place calls your parents from this or have -- callsour parents from your parents to this. wearable health. this is measuring blood flow and even measuring how sweaty i get. it is $200. on my right wrist i have the it bob. this cost $50. plansncourage you to bike -- to buy plants. plans.d demo we will have more after this quick break.
if julie hyman is in new york. >> we are continuing to see markets rallying here. we are breaking the losing streak we saw for the first three sessions of the year. in terms of the individual shares.downgrading analysts say after jumping 60% from last year, the market cap exceeding valuations of other companies in the luxury and excess free space. are also falling after the company sold its natural gas assets from the gulf of mexico. we are also watching the weather. record cold temperatures descending upon much of the eastern parts of the country. there is concern about what it could mean. let's talk about some of the other commodities. alan, going in today, there are
concerns about oranges freezing in florida. give us an update on what happened there. >> a big sigh of relief from florida today. the weather was around freezing last night. this is a little below freezing for several hours. it looks like that did not happen last night. wheat? even winter if can only deal with a certain level of freezing conditions. >> there was concerned it would be some real damage to the winter wheat crop. it looks like there was some damage in places there was not a lot of snow. are is enough snow that insulates those crops from this cold weather. >> so this snow provides a protective layer. what about animals and livestock?
>> one of the issues is that is a literal possibility. taking a look at possible cattle losses, that push prices. >> it is basically because of the costs to keep them warm. two cattle farmers keep them inside? -- do cattl farmers e farmers keep them inside? >> what you do see is more money to transport them to market on freezing roads. it will be tougher for them to gang -- to gain weight. if you are a cow in extreme circumstances, that will add stress. meatpackers are going to have smaller cattle supply.
for sevenen records straight sessions because of this. >> as we think about ourselves freezing today, if a thought to the cattle as well. much.you very we appreciate it. we will be on the market again in 30 minutes. ♪ >> welcome to "money moves," will refocus on alternative investments. i am deirdre bolton. what is going on with hedge funds, private equity, real estate, and more. jpmorgan chase will settle claims that it facilitated the ponzi made off --madoff scheme. also, private equity firm carlyle p