tv Bloomberg Business Week Bloomberg August 7, 2016 8:00am-9:01am EDT
carol: welcome to "bloomberg businessweek." david: we are inside the magazine headquarters. carol: elizabeth warren on donald trump. david: how time warner will take on amazon and netflix. carol: and looking at broadway. david: all of that ahead on "bloomberg businessweek." ♪ carol: we are here with the editor, ellen pollock. this is a double issue, big interviews. and there is a theme tying them
altogether? ellen: no, but it is meant to be a diverse group of people. it is meant to be all different. we hope that you take it to the beach. we have more than a dozen ceos, talking to them about things you would not expect. we have carlos talking about how he would change the work week. unusual things. we have ringo starr on brexit, believe it or not. and it is sort of unexpected, a nice unusual mix of people and it is fun. and you get to hear them in their own voice. it is sort of an interesting journey. david: let's talk about that. the founder of the black flies matter -- black lives matter movement, what does she talk about? guest: she talks about how she founded it. and she talks about how so many people sort of have a
misconception about what racism is. she says, it is not just about people being mean to each other or interpersonal relationships, but it is really about people, sometimes well-meaning people, who keep institutions the way that they are and keep systems the way that they are in a way that does not allow for change. carol: she talks about the clintons, she covers it all. she talks about donald trump. ellen: she talks about how the people who can change the whole trump situation are the people that he is appealing to. she says, it is not a matter of opponents of trump trying to mobilize people who are not for him. it is the people he is trying to address that will prevent him from becoming president which is
important to her. carol: you also spoke to an author about the new book she has coming out. talking about a fiscal disaster. ellen: this is interesting. she is very well known for a book she wrote called, "we have to talk about kevin." and what is interesting is she talks about what finance means to her personally and how her life has progressed. how her finances have changed and how her feelings about money have changed. it is a fascinating look at someone possibly use and how they move forward. david: finding her own place. we had jerry smith talking to the head of time warner. time warner taking a big stake in who this week. jeff dukas now runs time warner as a whole. it is interesting thoughts about the future of media and how we watch shows. ellen: one thing we asked, how
has netflix affected hbo and his view was you should be asking how hbo affect netflix because , the whole idea of the subscription business really started with hbo. and he talks about the fact that there is so much more content on tv right now, it does not mean that fewer people are watching individual shows, but because of search and the way that you get suggestions online about what to watch, this makes it easier for people to find shows that they want to watch. david: i spoke with jerry smith. he did the interview. david: talk about the big media companies today. he was with time warner for some time. >> he started with them in 1979. and he started with hbo when it was a fledgling channel and he rose through the ranks and he
became -- he actually led hbo at a time when they launched big hits like the sopranos and sex in the city. the company he inherited was this massive media conglomerate, they had aol. they had time inc. magazine. time warner cable. the cable company. he looked at these parts of the company and said they did not really relate to each other and they spun off and what is left is essentially this smaller company focused on the business of hollywood. hbo, warner bros. studio, hbo and some of these basic channels which is having a monster year in ratings all the goings-on. it is a really interesting time for this company. you look at companies like
netflix and amazon and hulu matter ramping up original programming putting pressure on hbo to maintain its position. >> what does he say about that pressure? regard companies and hehe regard them -- it does think they're doing something fun mentally different from what he was doing hbo? >> i asked him that. how has hbo's strategy changed since netflix got more popular and he sees netflix is a most copying hbo's doing the same thing hbo pioneered decades ago except netflix is doing it over the internet. i think he does have great respect for what netflix has -- if youially with gone netflix is easy to find what show you want to watch and you get recommendations.
>> i think he understands that reed hastings has created technology that is really useful especially when you think about the tv industry right now. there were more than 400 original shows scripted for tv from last year, so more than we can ever watch. so i think what he is concerned with making an interface so that when you are watching television, it is really easy to find what you are looking for. david: you mentioned more than 400 shows right now, so when you get the head of the media company in the room, you need to ask if there is too much content. what does he say? >> jeff bewkes us says this is a good thing. viewers are expecting to have a lot of great content out there. just because there's hundreds of shows competing with his hbo or in jeff'soesn't mean
words it is not mean people are not interested in tnt and tbs in their home. he says there is a consumer expectation for really quality programming. a company like hbo was the pioneer of that. carol: dozens of high-profile interviews, we asked the creative director how he decided what to publish. >> we wanted to show everybody the range of people that we were interviewing. i think we had 39 or 40 people in the issue. carol: you would have done more if you could? >> yes, actually. and we had a lot of photography and we were excited to show this is a big diverse issue with a lot of people talking. have anovers we activist, we have politicians, so it gets a feel of the diversity. carol: you make them different with the range of colors coming so you are mixing it up?
>> inside the magazine, all of the quotes are designed differently and it is to reflect the fact that this is not cohesive, you are getting all of these different voices from all of these people. we wanted to do the same thing with the covers. on each cover, the word interview looks different. photographere same take all of the portraits. >> no, we had different photographers across the country. we tried it to have a cohesive look. we were mindful of the color palette and we wanted it to relate to the subject and make it different for each one. carol: it is interesting. the color block it really kicks out the word bloomberg businessweek. why did you do that? >> there is a lot of type in the issue. callout for all five subjects plus the interview issue.
weinberger. david: he spoke about how to keep millennial employees happy. i spoke with jim ellis. david: why was he somebody that you wanted to talk to? guest: i was interested in him because his company, ey, is such a large employer of young people. i figured if anybody had their finger on the pulse of how to deal with millennials it had to be them. of public think accounting young people is not , the first thing that comes to mind. guest: it is surprising because so much of the workforce now, you think of people who are in the middle of their careers, especially with corporate jobs, but things like consulting and accounting, they draw heavily from college graduates and it puts them in a sweet spot of dealing with people in their 20's, maybe their early 30's. so at a place like ey, was surprised me is the median age is 29.
half the people there are under that is a big change of what 29. most people in corporate business in the u.s. are used to. david: is this a change that the for or are pushed they looking at the pool of where people are coming from? guest: people come in, particularly millennials, they are more in tune with the notion of, i will go where my career takes me and maybe i will do this for some years and then move elsewhere. that is a big change from boomers who thought, i will find a company and i will work for 30 years, and i will get a pension and moved to florida. that is not what today's worker wants to do. david: i was struck with how cool he seems to be with that. he is not hiring people with the hope, the hope that may not keep -- maybe not a hope of fruition but knowing that they may go
, somewhere in a few years. guest: i would've thought that this would be a really big challenge from an employer standpoint, oh my god, people will leave. but they figured out that there is nothing they can do about that. that is the nature of the people that they will hire. high potential millennials with good college backgrounds in people who are aggressive but also think about their own benefit here. so what they decided to do was make the best of it. so i will train you, i will make sure that you feel good about me. and if you do leave, you will go out with a really good taste in your mouth, you will spread the word of what a great place i am to be employed at. you also will send business back to me from your new employer, you will say, i know this great company that can do this job for us because i used to work there. carol: the delta ceo in this issue, ed bastian. david: talking about keeping delta on a winning track. guest: he was passionate about
the fact that he had disagreements about the company at that time. they had launched a low-cost unit a couple years before this. it was really going after the discount market, they were responding to jetblue and southwest and he is pretty adamant. out of that disagreement he david: he did-- and he came back. why did he come back? guest: several people he was having disagreements with were replaced. the ceo at the time was trying to fix what was going on in the operation. and i think when he and jerry got on the same page, he was ready to come back and go through the bankruptcy and really start with a clean sheet.
david: how healthy is delta today? guest: very healthy. they are pretty much leading the industry in revenue premium for charging. they are really hitting hard on operating reliability and getting the planes out on time and making sure that they do not cancel flights unless they have to. delta does not cancel a lot domestically anymore, unless it is the worst-case scenario. right now, delta is pretty much at the top of the industry in terms of earnings power. david: we think of all of the low fuel prices we have seen over the last years, so how does that affect the bottom line? guest: it affects everybody, that has been a major boost for every single airline, because it is a big cost for the airlines. they are getting the same
then said everyone else is. delta and southwest have been burned, america has not. but in the aggregate, the low fuel costs is a wonderful thing. david: what did he tell you about the economics of running an airline today? where do things stand now? guest: low fares are still common across the industry and that is a lot about supply and demand, there is capacity today. when you look at a lot of things, delta and other airlines are doing well because it is not low fares across the board. the thing about airlines, you might not get a great return any particular area, but you are probably making it up somewhere else. there is fierce competition and there are a lot of low-cost carriers that are keeping a lid on prices.
♪ david: welcome back to "bloomberg businessweek." carol: and the politics and policy section, how the green party presidential candidate jill stein is winning over supporters of bernie sanders. guest: unlike somebody like ralph nader, she was long before running for president, a green party activist. she was the candidate for example against mitt romney in massachusetts. she has been involved for a long
around issues like the environment. she ran in 2012 and now is overwhelmingly likely to be nominated by the green party. david: she is a medical doctor. she has made comments about what between vaccines and autism, something that has been disproven, but it is still widely talked about. how much does health care, her job in health care, effect what she does in the political arena? guest: she made comments about vaccines in which she referenced corporate control over regulation as something that could make people have less trust in vaccines. how she was practicing, issues were raised. it was a somewhat equivocal answer that people found unsatisfying on an issue where some people may really be
looking to political leaders of all stripes as the validators, on a question of what you do with your kids. on twitter, she said after she got blowback about this, she is not aware of any evidence of a link between autism and vaccines. in health care, she has been a critic of the existing system, including obamacare, and she said when i followed her to philadelphia, that we have a sick care system and there is more to do to make it that everybody is actually covered. what he talks about more often is the potential for a climate apocalypse, the degree of economic inequality in the country, in a sense where there is no more time for democratic or republican approaches to some of these crises we are facing in the country and the planet. carol: up next, marissa mayer on corporate motherhood.
♪ david: welcome to "bloomberg businessweek." carol: we are inside the magazine's headquarters. david: we are looking at the interviews issues. carol: looking at working mothers. david: and mtv making the old new again. carol: all ahead on "bloomberg businessweek." ♪ david: here with the editor in chief, ellen pollock. so many must-read interviews. that start with marissa mayer, the head of yahoo!.
the corporate of it has been sold to verizon. interesting conversation about how she got to yahoo!, she was at google before hand and she talked about the challenges of being with that company. ellen: google was young and she talked about the founders had been like, rollerblading on the campus of stanford and how much she learned there. and that for a really long time she would do at least one all night or a week. she would work 130 hours a week, which is a lot. basically, how exciting it was. she goes on to talk about what it was like to be working at yahoo! during the last year where it was for sale, was not for sale, so much going on. carol: and she talks about parenting, because she had kids through all of this. it was not easy.
ellen: and she had twins about the time that they were getting bids for yahoo! and there were decisions on big tax issues, where the it's been all part of the company. activists at her back. and verizon calling. she says she was the busiest person on the planet. someone actually said that to her. and she really was, she had twins at the same time. i personally could only handle one. and twins, that is impressive. carol: another busy woman, senator elizabeth warren. and she has something in common with donald trump. ellen: she talked about a number of things she had in common with donald trump. she talked about glass-steagall and tpp. she wants tpp dead. she said i don't feel a pulse. very adamant that it is dead. and she is going to keep her eye on hillary clinton and make sure that she follows through on her
promises. david: one thing the reporter josh green asked her about was the role that she sees a result playing going forward. what did she have to say? ellen: that she will be watching at all times. carol: speaking of donald trump, another individual that comes up in the magazine, harold hamm a , big supporter of donald trump . ellen: yes, he talks about the oil industry and how he feels that the oil industry is going to benefit from opec being weaker which not everybody , agrees with. but he thinks it will increase independence of the oil industry in the u.s., because we are producing so much more here. one of the bigger patriotic events of the last few years, despite the fact that oil prices are now down and there are issues in the industry.
he is a big supporter of donald trump. very clear about that in the interview. david: i spoke to matt about his conversation with harold. guest: he is the son of share cropper's in oklahoma. grew up dirt poor. he started his own business at the age of 20 on his own. as a land demand. 50 years later he is the 76th richest man in america and depending on the price of oil, he is as self-made as it comes. as responsible as anybody for the shale revolution especially in north dakota. david: this last week, we saw oil going through a bear market. so what does he say to you about the low prices over the past months? guest: on one hand, they have forced operators like
continental to become more efficient. to do more with less. at the same time, the finances are terrible. an industry loaded with debt, that needed higher prices in other parts of the world to make a profit. now that we are skirting around $40, that seems to be the case going forward, that these guys will still have a lot of problems. what is interesting is this is a supply glut problem and he wants to talk more about the owner regulations that the government puts on operators like himself, that keep them from getting more oil, but that is the least of their problems. david: you sat down with him during the republican national convention, what did he have to say about why he is thinking donald trump would be the best person for that job. guest: he says he basically will get rid of these regulations that he blames obama for putting on operators like himself.
and only donald trump will truly unleash the potential of u.s. energy. find, as much, i time as they spend on the obama administration and how bad it has been for the oil industry. over the past 7.5 years, this administration has doubled the oil industry. so what would've happened if you had a more classically republican pro-industry president in office? every interview is a cover spread -- is a photo spread guest: we shot almost everybody featured in the . everybody featured in the magazine, i think, 1% of people person we did not end up shooting because they were getting married.
david: good excuse. guest: almost everybody agreed to be shot. it ended up being i think six photographers around the world, the main photographer who we have worked with quite a bit, shot the bulk of it. he was traveling every single day to shoot these people involved. carol: talk to us about the delta ceo, you guys were in the delta museum. >> yes, that was one of the first one we shot. we went there, the photographer images the bulk of the went there the day before and , scouted and said, there is this great airplane. i do not know if it will work or if it will feel cheesy and ed was so lively and accommodating. and so energetic, that we ended up getting great pictures with
companies that employed on demand work. you good look at task rabbit as a place to book workers of all kinds. and it has made a difference for the companies that have taken the model and applied it later to specific work, like uber with driving and handy with housecleaning. and task rabbit was one of the first and has remained broad. david: you sat down with stacy .rown philpott what did she have to say about the complexities of running a company like that that does so much? >> she said it is a blessing and a curse, something that has helped task rabbit is that people look to it when they need to get something done so it is a multipurpose platform. but on the other hand, they feel like they have lost out on certain things. it was not always obvious on how task rabbit could fit into your
life as a consumer. so she talked about the advertising push and it has been focused on only a few categories, doing chores, deliveries, housework, and trying to help the consumer understand how it could fit into their lives. david: it is a ceo that many people have not heard of. who is she and how they should come to take on this role? ? >> she has an interesting back story. she grew up in detroit. and then she attended business school and ended up working in finance and investment banking. and she went and joined google. she worked in their finances division, in the company for nine years. cheryl samberg had been a mentor to her. she worked in india, not just the u.s. when she decided to leave google , she said she wanted to look for somewhere that was smaller where she would have a chance to make a difference and as he was
drawn to the task rabbit mission. she joined as their coo a few years ago and work very closely with the founder. and now they have made the switch, where she is the ceo. david: she grew up in detroit, daughter of a single mother. african-american. something that you talked about, the importance for her on running a company where there is a representation of african-americans. >> task rabbit is both already 12% african-american, which is far and beyond what most tech startups are like in silicon valley. and that is not enough, she wants it to be more representative of the population at large. she says one of the things that makes it easier for her company to recruit african americans, is that she is a black woman and as
ceo, she has a visible role. and she talked about her authentic self at work. i think it is hard to pin down what makes task rabbit able to do that, but it is a unique thing in silicon valley. carol: also, a conversation with roger snow. >> it is basically like "texas hold 'em", but it takes a lot of the decisions, basically it is a simplified version of the game. so those who are not masters of poker can get good at it. they take poker, there is one million directions you can go with it and these games trim it down to a couple of decisions. david: how did roger snow get into poker and come to believe that there was potential for widespread commercialization of the game? >> he had a short stint as a journalist.
[laughter] >> he moved to las vegas, kind of like a lot of people moved to vegas hoping to make his , fortune. and he got a low level job, these analysts that work at casinos, looking at the books. and he noticed that the casino money tong sums of rent games. and he said, what is this? and he got curious about how to advance the games and -- invent the games and how to make them. david: what makes a good game? what makes a game that people want to get good at? >> there are different philosophies, he believes in a couple of things.
one is the idea of volatility. so basically, some people think the key to a game is simplicity, you want to give people a chance to make money easily. he does not think that is the only case. there is a certain kind of dopamine hit that they are trying to get through the process. games that allow you to change your position quickly, so if you are behind, they allow you to catch up quickly, or you can press your advantage. he talks about volatility and he tries to build that into the games. and he also talks about intricacy, so games where certain decisions lead to other decisions. so you do not want things to be too simple or too easy, you want the sense that you can master something. you do not want it to be too hard. you want to be able to get better at something. carol: up next, the mega-money going into broadway. david: and mtv dusting off the classics for the next
♪ carol: welcome back to "bloomberg businessweek." in the industry session, mtv decides to relive the good old days. the vault is a library of different assets. these are full series like, date my mom, these are clips from awards shows. interviews of celebrities, anything that has appeared on mtv or happened behind the scenes during the taping of something is in the vault. and mtv has spent the past few years going through and deciding what they want to keep and what in particular is a high profile
footage that they want to digitize and make it so they can search and pull up any time for any show, like snapchat or youtube and so forth. david: so this is mtv classic, so what will that be? a place to show the old episodes of beavis and butthead, or will it be a highly programmed curated channel for people to watch? >> it will be a primarily classic footage channel, all of -- old episodes of trl and the ia.a -- and dar i think they will try to come up with some fresh programming, so it is not purely nostalgia. there will be licensing of other people and tv shows from that same time, but they are focusing on the stretch of the 1990's and
maybe some 1980's and 2000's. this is a small step in the utilization of the vault. i first found out about it 1.5 years ago and ever since then, mtv said we have to wait and we cannot do the story yet. and i would reach out and say, can we do this, please? i remember there was a clip of eminem from total request live, one of his first appearances, and i knew that had to be from the vault. i e-mailed someone at mtv and they said please wait. now all of that footage is being repurposed for the pilot episode of the show year one which could air on mtv, which would be going back through the year that a particular artist rose to fame. so imagine eminem in 1998. carol: a q&a on how broadway has changed over the last six years.
>> we wanted to find somebody in the world of the arts. we have a couple of those on the list right now. but there was an idea for pioneers. there are some people that have been doing things a long time and are still working. we got about a couple of people -- we thought about a couple of people in the theater world specifically because broadway , has been at the top of people's minds with hamilton, and it is a business. what we see are the quirks of the business. we have the original cast in a, but then the tony winners are leaving. we tried for andrew lloyd webber as well. prince -- prince, that one worked out.
the other one, the timing did not work out. but jim and i are huge theater fans and we got that peter would -- we thought theater would be the way to go. david: he is a pioneer for sure. you talk to him about how he got started in theater. he takes an unpaid internship. how did he get started? >> he stumbled into it. somebody said, maybe george abbott is looking for somebody. he was one of the most successful producers on broadway and he was doing musicals, which -- he is very erudite and smart. high-minded idea that he would do theater. it was this opening into a world of musical theater and successful musical theater that george abbott was doing. that opened up that world and defined the path he was going to go on.
he came back with iran when he was setting the terms himself whether directing or producing. really going after something that was challenging. taste.d he used that word with me a lot that was interesting to hear him say and groundbreaking. david: you mentioned maybe he did not think a lot of them are good. did he have a vision for what he thought of musical could be? >> he wanted a story. you do not need just a bunch of songs strung together, but he thought there should be a story there, a message. it could be about love. a lot of the musicals and productions he has worked on are at the core, love stories. there could be a political message. cabaret has that with the rise of socialism and what was happening in germany.
i think he looks for stories and it is not just, here is a person who knows how to write a great tune, and it is catchy and if we connect it to other good tunes, there is a show. carol: bloomberg businessweek is available on the newsstands now. david: what is your favorite story this week? i suppose favorite interview is an option as well. carol: i liked the story on mtv, going literally back to the vault and the old footage and bring it back for another generation to watch. it is a whole undertaking. how about you? david: i liked jim ellison's interview with mark weinberger, the ceo of ey. the big consulting company. carol: the millennials. david: yes. an amazing percentage of his workforce is very young. carol: ok, lots of great stories and interviews. see you next week. ♪
♪ cory: i'm cory johnson. this is the best of bloomberg west. we bring you all of the top interviews from the weak and technology. coming up, will google win big by selling in china? .e will hear from bill gurley plus, more tech mergers may be on the horizon. we talk about the next big deal to drop. making space history. the first private company cleared for a