tv Bloombergs Studio 1.0 Bloomberg November 13, 2016 12:00pm-12:31pm EST
>> she has been one of the most powerful women at google from literally the very beginning. in 1990 82 unknown entrepreneurs, set up their first office in her garage. she became employee number 16 and went on to build the search engines article advertising business. she urged her bosses to buy youtube for $1.65 billion. on the 10 year anniversary, youtube, under the google
andella was in the family has more than a billion users watching videos around the world. joining me today on bloomberg studio 1.0, ceo of youtube. >> susan, great to have you here. >> thank you for having me. >> google started in your garage. -- in 1998.on i picked themsay out out of all the students at stanford and said "come and read my garage." it didn't work that way. house and houses are expensive in silicon valley and i was a student and so i wanted someone to help me pay the mortgage. they were looking for a place to stay and it was just the two of them and they had one employee and the idea that they could move into my garage quickly and
easily at a low cost for them was really appealing. so they just moved in. >> your mom was a teacher and her dad was a physics professor sisters, tellwo me about a day in the life in the household. the stanford on campus which meant our neighbors were professors, which definitely influenced us because everybody was studying to do something and had a passion. i am the oldest and i would always be the more practical one as the oldest one and i always loved making things and i think that is what led me to computers in the end. >> how did you parlay your history and literature degree at harvard into becoming the ceo of a giant technology company? >> i had no idea that i was going to go into technology. if you had told me that when i
was a student i would have thought you were crazy. to do these temp jobs when i came home from college, so i would have a week free and i would just call a service and say, "place me anywhere." one time i got placed with a lawyer and another time i have placed a garbage companies. i realized that they can use technology and they have big ambitions and i wanted to be part of it so when i went back as a senior i decided to take a computer science class at harvard which was crazy because there was no other humanities senior taking a computer science last it was really good. i got a good basis and when i came back home, i came to silicon valley and i was able to get a job and i have been there ever since. >> you were first marketing manager, you worked on google images and google books. you built the business best you
built the ad business. when you join a startup you have to be willing to do whatever the startup need you to do. because i was that didn't have a fixed role at first i was always looking for the opportunity so it was like, there is an opportunity where no one else is working. there were all these other people working on the text search -- tech search. was really cool so i think doing lots of things and having the freedom to move around the company, there seem to be a lot of opportunities, then grow them. >> it has been 10 years since google bought youtube and you wrote the original justification plan that convinced larry and sergey to buy the company? >> i did a spreadsheet. i also believe in you to. there was this one video, that video convinced me and showed me
that people all over the world can create contact and be entertained. the video was of these students in their dorm room and their roommates were in the background , singing to the backstreet boys and they are incredibly funny. i still laugh when i watch it and that was our first hit. that people a little the world can be creative and that other people want to watch it. if it continues like this, continues to grow, this is going to be a big phenomenon. >> i always use about youtube. it could be so much more. >> i think the growth has been amazing, the fact that we have one billion people who use youtube every month is -- that is a big number. --iety did a study and way and they asked me who are the stars and in 2015 they said
eight of the top 10 were youtubers. >> it has been almost three years now since you became ceo. >> it has been really fun. and meeting the creators. i love the creative aspect of it . i love the way entertainment is being opened up to anyone. and i also really cared deeply about the value that we have on freedom of expression and the fact that people over the world can use it to tell their stories. when i think about where to we want to grow it, video has never been easier to create and watch. think about ourselves as a platform for the next generation of media companies to be able to create content and distribute it to the world. we also want to work with traditional media companies so that content can be redistributed to all the millennials on the platform. >> some estimate the value of youtube at $70 billion.
why isn't it a standalone company? >> is an important part of google. we benefit from a lot of things being part of google. googlesbenefit from inventory. we are a company within google and we have all parts that a company has, sales, marketing, engineering, so we have some of the benefits of google but then we are able to be a standalone brand. >> there are reports that youtube makes billions of dollars and you recently said that youtube is still in investment mode. how would you describe your goals, larry page's goals around profit? >> you want to focus on growing the business when you are in a big growth area. you have to balance doing that and then doing that in a responsible way.
tv, one of the biggest markets from any metric, from deacons -- and theatch time, millennials, we are not watching them watch as much tv. we see this as an opportunity to continue to grow the products and continue for youtube to be a great experience. we are definitely in investment mode. teens are first time, watching more youtube and cable. compared to 37% for netflix. what is the demographic? some people say youtube focuses too much on younger users. to get one billion users you have to have all demographics. if you look at any demo, we have a very significant number of users. i do think we look at the millennial audience and see their behavior shifting from
traditional tv to online. and the mobile i think is driving a lot more usage. this is the generation that has grown up expecting that they should be able to see whatever show they want whenever they want. >> snapchat is rising and facebook and twitter are doubling down on live video. apple is getting into original content. youtube is a little bit of all of these. do you see more focus or priority down the line in one particular area? >> we are focused on being a available to is anyone and everyone so you want to have the broadest reach. you want to get it out there to everybody. >> but we also have a subscription service. our largest creator has over 45 million followers and .ubscribers so if you look at these
creators, they, a lot of times, will be doing one thing on youtube but thinking about doing a movie or a series. and we have been doing original content as part of our subscription service for our creators to be able to take it to the next level. >> what is the balance you intend to strike between subscription and ad revenue? forward, you are going to look at it and think of them were really important. and they work together. the fact that we have a free actually enables an opportunity for users to calm and say, i actually want to have decent script and business so it is an upsell mechanism for it. how do you feel about getting the mom question?
>> you were google's employee to go on maternity leave and you joined google when you are four months pregnant. tell me about telling larry and sergey. >> all of the other employees were students who didn't even have a girlfriend, let alone thinking about having a baby. i was in a completely different world from them. they --hem up front and it took them a minute to register that but then they actually thought about it and they were like, "you know what? we are going to build you a day care." >> you only have 16 employees and you don't have any revenue model and i said it was ok. she said -- we were able to open up a day care and we were always supportive of families so we continue to operate that today.
it is hard to scale with all of the employee growth. > you have five children. you are a hard-working mom. how the you feel about getting the question? it is a question lots of women have. and have wanted to be open share my point of view and experiences because i think women want to hear about it and men want to hear about it too. it is hard for both sides. how doow do you do it, you run youtube with five kids? >> the main thing with me has prioritize andnd so i am really good about saying this is my work time and when i am in the office, i am really focused on what i am doing and prioritizing. i have always thought about, how do i get from point a to point the as quickly as possible. i can't work weekends.
in some ways it actually caused me to speed some of the shortcuts, some of those new opportunities because i was thinking, how do i grow this quickly. all ofust forget about those other things that are growing slowly and not going anywhere. i have got to focus on the big idea. int action is really good tech. i use my work time to focus on i trynd when i get home to focus on my family and kids. and realistically, as i have risen in my career i have been able to have more help at home. the hard part and what i really struggled with was one i had my first abi didn't know what i was doing at work or at home and you don't really have any support. that is when it is the hardest. >> what is the lien in
philosophy? >> some say this is helpful and other women say "i have made a conscientious choice not to lean in. i want to spend more time with my family and more time not working." it offensivey find or disagree with it but i think of it as a business book for wants to not everyone be in business and not everyone wants to lean in and that was fine. to the instant that you want it or you have to, she has lots of great points about how to ask for a salary. so i think that it really applies to a lot of women's -- a lot of women who have to work. >> what about places where there are barriers>>? >> i think there are lots of
ways the world to change to make things easier for women. but those things get changed by having more women in the workforce. so like, summer camps. i don't remember there being some of camps. we just stayed home and did nothing but now there are so many choices like karate camp or computer camp, art camp, design cap. there are all these parents who want their kids to be able to do activities during the summer. big a problem do you think it is that women are so underrepresented in technology. >> i think it is an issue from the world because it means we are missing voices and innovation from women who could be creating all these great products and ideas and services. it is a problem for women because women have made a lot of strides in the workforce and
here is this huge economic driver of change and women are not participating. what is driving the new jobs because it is driving change, it is driving influence. and women are not part of it. they are not part of that change. >> google, for being one of the best companies to work at, has the same numbers as everybody. why is that? >> look at the people graduating from college and you still see that the overall number of women having computer science degrees is at the most, 20%. today there is a pipeline issue but then you say, why is there a pipeline problem? once you have one it causes other issues. that 20% tosking
going to an environment where 80% of their peers are male, you might be at a disadvantage when you graduate because you are going into a more male environment. really, why the you have the issue in the beginning? i think at some level, it is a problem that women think that computer science is boring, not interesting or that they wouldn't be good at it. what happened to me was i saw that computers can be creative and i love to create. i was able to overcome some of maybe some of, the stereotypes of it being very numbers driven and boring and see, see it for the creative industry that it is. >> how much will youtube spend on original programming this year, next year? ♪
>> how much will youtube's been on original programming, this year, next year? >> we have been learning about creating shows, with -- we have actually been pleased with the feedback we have gotten. >> was the most successful show? pewdiepie, he is a gamer who plays games with commentary. game where helife
was put in real-life situations that were like a game. facebookr, amazon and are doing livestream writes for sports. >> now we do a lot of highlights for sports. they did well on youtube. the full game, those are very competitive, they are really expensive. in traditional media, they are competing for them so i think a lot will change over the next five years that at this point, we are focused on those highlights so that users can see those key moments. >> how do you think things will change? have online players stronger ad models and subscriptions, they will be able to be more competitive, they will be able to compete for some of those sports rights. the headlines talk about youtube being at war with the music industry, everyone from taylor swift to paul mccartney saying they don't like the way you do business.
do you see a future with a mile ground? that there areed many constituents in the music industry and they don't all agree with each other. there will be the labels and the artists and the publishers and i remain really hopeful that the online models of those subscription and advertising become more developed and that over time we are able to come so that everyone agrees on that future. i think we are getting there because we are starting to see revenuene subscription, with advertising, we have paid out $3 billion to the music industry, we have good growth numbers. overall, i think as more time goes by it will become more clear about what these monetization models are. >> how are you thinking about the are just about vr? there are many developing
content for everybody is still trying to figure out what the best way is. this is a new medium. we are leaning in. great way tos a have an experience where you can really feel immersed and really experience that story. for aassment is a problem number of different technology companies and if you look at the comments on youtube, they are not kind. what are you doing to get that under control? >> i think that is a really important area that we are putting energy into. anything that promotes violence, anything that promotes hate, that would violate the community guidelines. if there is something on our platform that violates guidelines or that the user feels uncomfortable with they can flag it and it goes to a queue and it is reviewed by employees who then will see if it meets the guidelines and then
if it doesn't, we will take it down. but we are trying to do more. one of the things we just did that i think is really impactful is we created the "creators for change." there are creators taking these tough topics and they are doing a great job to encourage understanding and empathy. we have a fund of a million dollars we gave to that end we are promoting them on social media so the idea is, how do we get creators that are so influential in themselves to promote positive messages of empathy across youtube. >> do you think the internet will become a friendlier place? >> all technology has good and bad sides to it. just like the real world. there are friendly people and there are difficult people. i have seen the good that has come out of it and i have seen the way that people are able to connect with people like them on the platform that otherwise they would not have been able to
connect with. betterl is, as we are able to identify the right ways to enforce, that we can continue to do an even better job and have -- promote even more of the good stuff. >> where do you think you two will be in the next 10 years? do you see it more like netflix? be thegoal is to platform for the next generation of media companies and if you look at youtube, which started out with cap videos and uploading things they saw in their backyard, then we had creators and they started doing it for a living. now we have this new generation of creators that are building media companies on youtube. years,fast forward 10 you will see that there is going to be a new generation of these media companies that has a really strong following. they are able to create amazing content that is going to be global. they will interact with their fans and i am going to look
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