tv Best of Bloomberg Technology Bloomberg December 10, 2016 6:00am-7:01am EST
and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. ♪ emily: iemily: am emily chang and this is the best of -- this is the "best of bloomberg technology." you watchdogs send a message -- you watchdogs send a message to big tech. how tech is responding. best ine best of the science that celebrity treatment in silicon valley at the fifth annual breakthrough awards. we will send from the russian billionaire who helped started,
gary milner. so much for burning the midnight oil, one titan in tech media said the key to success is sleep. us.nna huffington joins the regulators -- e.u. fasterors warned to act against online hate speech. facebook, twitter, microsoft, and youtube banded together by signing a voluntarily -- voluntary code of conduct. they support "in the effort to respond to the challenge of ensuring online platforms do not operate -- offer opportunities for hate speech to spread virally." of -- reviewed a majority remove and disable access to such content if necessary." six months later, you regulators say the companies are not living up to their promise and only 40%
of cases are addressed in less than 24 hours. facebook, microsoft, twitter, and youtube said they are creating a shared database of terroristsevere videos and 8 -- that they have removed from the site. joining us now, the managing --tners at corroded ventures heroic ventures and all the way from berlin, caroline. >> they want to see the threat of legislation to come in and force the hand of these companies. alerts have been tackled in 24 hours. much more are being tackled, 80% in 48 hours. they are saying, it is not that you cannot do it, you are not putting enough resources behind this. you should be able to put more resources behind this. no wonder this is being viewed by the e.u. at the moment.
terror attacks have happened -- record notably in france. angela merkel has said she was thinking of potentially lending support to regulation to reduce hate speech because that is pushing this wave of -- not only is the speed slow, but it is particularly slow in some other countries that angela merkel and that you are worried about. italy, just 4% of the alerts about hate speech are tackled within 24 hours. be 100%.t is meant to and austria, 11%. this is a country that very far rightd a notably presidential candidate winning. these are countries people are
worried about and want to see a greater tackle against hate speech to drive back populism. >> this is an issue you have taken on for a good part of your career. you lead reputation.com for a long time that tackles these kinds of issues. what do you make of how the e.u. is handling it versus the united rates -- united states. ? >> this topic is hard for american viewers and businessmen to understand because we are understanding of the first amendment. that is not the case in europe. as viewers come it is not the case in europe. in europe, speech is not protected, including political speech and inciting speech, and hate speech. there is a history of radical violence in europe that has been met with legislation and constitutional changes that are not -- it creates a situation different from the american situation. ins question is normal europe. europe is very serious about it. there are two basic axes of
problems. they are not responding fast e.u.h and secondly, the wants them to take a more expansive view of what or hatetes inciting speech. they do not think these companies are taking it seriously and now, in america, these topics, up more and more. we see the impact of the spread of fake news. we know the russians were spreading fake news to effect the election. we know that general flynn wanted -- one of donald trump's name -- nominees spread news that was obviously fake about the clinton campaign. this is a live and present question. there is an important item. facebook, an amazing company is in an unusual position. on the one hand, they have to say hate to be jammed the spread of fake news does not impact viewers because our viewers an audience do not take that seriously when they do it. emily: what do you think
facebook should do? should they behave more like a media company than a technology company? should they take greater responsibility for moderate -- monitoring and moderating fake news? ishael: i think the question yes, but there is another thing in technology. the law in the united states actually gives deep protection to copyright. if any of these companies receive a notice that the photograph that is being shared is under copyright of an owner and the owner does not want it copyrighted or shared come all of a sudden those companies have to take swift action to remove or otherwise segregate those copyrighted materials. as a result, what is born is a series of technology solutions that allow them to limit the impact and distribution of copyrighted materials once they are on notice. the same thing has not happened with speech or hurtful speech or emotionally violent speech, a video for example of a little kid being beat up online.
there is no law that requires one of these pages to remove it if they are put on notice so they never had to develop technology. i think there is a technology service here, whether it is a media company or platform solvey, i think media can one of these problems. if they decide they want to, they will. emily: coming up, silicon valley leaders leave the breakthrough prize awards honoring the top minds in science. our interview with yuri milner, next. wojcicki, her concerns about the funding of science and innervation under trump. this is bloomberg. ♪ emily: microsoft has completed
outlook software. worry that they may use the deal to squeeze out rivals. microsoft urged the e.u. to look closely at the deal. fromsunday, top executives hollywood and silicon valley gathered for the fifth annual breakthrough prize event, and award celebrating top achievements in the field up physics. 24 million dollars was given to 12 researchers, scientists, this year, a special prize was awarded to a team of over 1000 researchingpeople gravitational waves, ripples in the fabric of phrase -- space time when two black holes merge. it was created by top players and others.ckerberg with yuri milner and asked about which prize he was most excited about.
: the special prize went to the collaboration of a thousand people for the discovery of gravitational waves. come to us from two black holes that collided a billion years ago and it is incredible that technology thisd detector this and verifies the prediction made by albert einstein years ago. with: you are fascinated space and what is happening in the universe. what progress have you made in finding terrestrial life -- extraterrestrial life? yuri: i think we have a decent chance because there are 20 billion planets like ours in our galaxy and this should be multiplied by trillions, the number of galaxies in the
universe. the chances that all these opportunities only created one civilization are minimal. i think eventually we will find out somebody is out there and maybe they are one billion years ahead of us and then it will really be exciting. emily: if you travel around the world, 40% of your investments are in china. talk to me a little bit about -- are you concerned that funding for this kind of innovation and technological breakthrough may suffer under the new administration? days, buts very early i think what is happening is an amazing global macro trend, which is really empowering all of us with technology and software. years there were $2 trillion worth of value created, two thirds in the u.s. and 25% in china and the rest in the
rest of the world. my prediction is that in the next 10 or 20 years the trend will continue and many more trillions of dollars will be .reated in this exciting space i am not good at short-term predictions, it will happen next year, but i would bet that in the next 10 or 20 years we will see a lot of value coming out of places like silicon valley, tel aviv, london, bangalore. emily: you have any concerns about the election of donald trump, given whether it is orping up the playbook taking a call from taiwan or potentially befriending vladimir putin, given that you are from russia. toi: i am not the best one comment on this. and i have really been focusing on technology around the world
and that is really what drives me. wherever there is a technology opportunity, i am trying to send a lot of -- a lot there. long-time investor in facebook. do you think facebook needs to take on greater responsibility when it comes to fake or inaccurate news? should they consider themselves a media or technology company? yuri: i think facebook is serious about this. you recognize there is a high concentration of value in internet companies, over 80% of value is concentrated in less than 10 companies. each one of them has a responsibility. i think it does not only apply to facebook, it applies to all of them around the world to think about things like that. talk to me about how you are dividing your time in terms of travel and what technology
you are most excited about? yuri: i am 80% focused on investment and 20% focused on nonprofit initiatives like we talked about and as we talked are -- of20% investments are in the u.s., 40% in china, 20% in the rest of the world. that is how i try to allocate my time. emily: when it comes to new technology, what do you like that is out there? where do you think the growth will be? what are you most fascinated by? yuri: there are some unstoppable trends. all various facebook ai do --utonomous driving driving and things like that.
now the big trend is robotics and i think when those trends you will see a lot -- little bit of contention outplaying -- emily: we caught up with anne wojcicki who teamed up to create the breakthrough prize as well. we cover everything from her -- to the prioritization of science and technology under president-elect tromp. we started talking about her aim .ehind the breakthrough prize for me, me, -- anne: the goal was to create -- make scientists celebrities like other people are celebrities. my goal was, how do you make scientists part of pop culture? emily: you have any concerns a trump administration will not
fund this kind of innovation? i think it is a concern that science will not be as prioritized. i am hoping that things like a breakthrough prize and more efforts to educate the youth, it will not matter what the government is saying too much because you will inspire individuals to learn about it and get involved. in some ways, that is where notrnment matters and does matter. there is no government policy about basketball, but we are all crazy about basketball. what are your broader concerns and reflections on the election, given the industry you work in, given that we were this close to seeing a woman in the white house? honest, wait and see. i would love to be able to judge wants things are happening and i am eagerly waiting to see who is going to be at sea commissioner and who is -- who will is going
to be fc commissioner. want to keep supporting the fact that science is incredibly and without a fight -- scientific fact based a world we are living and come i have concern. emily: what about the potential of unwinding the affordable care act are not hiking drug prices? anne: i think there are all in termsways to spin of worries. the benefit of affordable care act is there are millions of americans who are waiting it is great to have health care -- who are saying it is great to have health care. people want to have those benefits and feel empowered to take charge of their health. i am completely open-minded to alternative ways to look at it. i am a kaiser permanente baby, i have always been a fan. once people have gotten their health care, it will be
hard to take it away from them. emily: give us an update on 23andme? how do you see -- genetic never sold data. we have always done research projects. the most exciting thing for me, i love consumers step forward and say they want their genetic information. more than that, i love how well we can make discoveries from this research database. i get people who have had star, or some kind of chronic illness and they are saying just help us understand why this is happening to us. and the fact that we are able to effectively leverages -- leverage our customers and make meaningful discoveries gives me a huge optimism about week -- but we will be able to do in the future and how quickly we can make meaningful discoveries. emily: how about the drug discovery part of the research you have been doing? any diseases you are honing in on? event,eing in a science
you should not be that excited, but it is one of the things that almost keeps me up at night because i am so excited. i am so excited at my science team and we are making discoveries. we have richard scheller running our therapeutic unit and we have a number of compounds in development. we have new labs in south san francisco. i am enthused and inspired set the database of information will potentially yield novel therapeutics and i am hoping to prove out the fact that we can do it faster and more efficient than other pharmaceutical companies because we are starting with the human genetic database. , 23 and me wojcicki ceo from the breakthrough prize awards in california. coming up, we get a silicon valley's investor take for what for thesecretary means future of cyber security. we sit down to discuss media
transition team is said to be considering a silicon valley investor to lead the fda according to people familiar with the matter. jim o'neill is a managing director at peter thiel's company. o'neill does not have a medical background and every fda head in the last 50 years has either been a trained physician or scientific researcher. trump has chosen three generals for his top team of advisers including general john kelly for secretary of homeland security, general michael flynn for national security advisers, and general james mattis for defense secretary. james mattis has extensive and recent military experience. what is -- what does trump's choice me for global cyber security threats? ath me, partner and investor
-- >> general mattis has a true reputation,errific advocating force only when necessary and when it would be successful. i think he stands out as a confident pick among trump's read the question is not about him in particular, but why it is that donald trump would say he is looking to the defense department or the joint chiefs of staff to protect this infrastructure against cyber attacks. looking to the defense department to general mattis or the joint chiefs of staff to controlour industrial systems come our dams, water treatment facilities, nuclear reactions that reactors, it is just not the right solution. calling in the marines to protect malware is like trying to stop a termite infestation
with a shotgun. emily: you expect the nsa to focus more on threats from russia or within the united states? >> the mandate has always been to monitor threats from external enemies. what is scary is that president-elect trump does not see russia as an enemy as much as he sees and any's -- he sees enemies in the american homeland, jihadist refugees or illegal aliens or protesters or conspiring journalists. emily: for anybody on snl. >> for alec baldwin. the concern is, will he redirect those cyber capabilities against the american population. given to his advisers are, rudy giuliani, who proposes stop in for us on the streets of america, why not stop and frisk cyberspace. peter thiel, whose main position is in the company he cofounded
that makes the software that spy agencies use to monitor large populations, what is going to stop the nsa, part of the defense department, from in -- turning its sights on americans? the concern i have is whether general mattis will hopefully stop that kind of use of the nsa, but there are other spy agencies in the government that do not report up to him. emily: general mattis has an interesting silicon valley connection is that he is on the board of the very controversial company theranos and as far as we can know -- as far as we know he is still on the board today. he would have to step down if he becomes secretary of defense and he also tried to get the military to use theranos technology unsuccessfully. what do you make of this? david: i am sure general mattis had no idea the test did not work. hopefully, what he learned from that is it is a good thing we
have the fda to set rules and to apply scrutiny as to what it is that companies are going to sell to the public. when we talk about cyber security, this is an area where we need those rules. we need those regulatory -- these agencies are all trying to identify, promote, and enforce cyber standards among companies and government agencies in order to make cyberspace safer for everybody. i am hoping general mattis will pay more attention to the value that these agencies bring then theranos has to the fda. emily: that was bessemer venture partner david calendar. coming up, we get arianna huffington's take on how the media should cover president-elect donald trump.
>> you are watching "bloomberg technology." when a simmons influential women in media and technologies preaching that the ultimate key to success is sleep. arianna huffington has launched a new -- revolutionizing the way we work and they've by ending the burn out epidemic. we caught up for an extended conversation. take a listen. arianna huffington: my mission is to disrupt the way we have worked and lived because it
isn't working. we have seen companies that are wasting hundreds of billions of dollars in health care loss and in high turnover and there is a solution. to prioritize the well-being of employees and to recognize that well-being and productivity are aligned. when we are running on empty, we are undermining our productivity and costing individuals a loss -- financially and in every other way. so going into corporations, helping them change the culture -- we are working with accenture andjpmorgan and s.a.p. becoming the help of these conversations. we have great content from our great reporters and from our business leaders like jeff bezos.
danny meyer -- talking about how they thrive. is theally there commerce side. a pop-up store and a global pop up. >> you are not shy about your dislike for the donald trump -- you put him in the entertainment section. now you say that the media should cover what he does and what he -- and not what he says. the problem is, he keeps tweeting influential and inflammatory things. this?ould the media cover huffington: i said he should be covered for what he is doing now. instead of the campaign. no matter how much you oppose no one opposed them as
much as the huffington post, it is in our best nature for him to succeed. and that is why he is reaching techo silicon valley and meetings. it is important because he needs to hear from those voices. fromw that when he heard someone he respected that waterboarding doesn't work, he changed his mind on waterboarding. and for a minute, he met with president obama, and he was tonding a very different when it came to obamacare. so it seems that he is easily by those he is listening to. and therefore, it is important here is surrounded by people with these views and people who will be influential in terms of how he runs the economy and also
in terms of foreign policy. emily: the post came out today saying the spread of misinformation is probably the worst damage the media can do. do you think that facebook and twitter can do more to police fake or inaccurate news? everybody think should. we have a tremendous responsibility, all of us in the media. to challenge the spread of this information. president comes from elect donald trump tweaking that or whether people -- it comes from fake news promoted --the top by algorithms there is nothing more important than to recognize that we all have the right to our own opinions. but we don't have the right to
our own set of facts. there is such a thing as facts. and we need to be absolute in trying to discern the truth from the facts. emily: when it comes to a company like facebook, mark zuckerberg has said, we are a media company. do you think they should be considered a media company and take action? arianna: but mark zuckerberg did say they would be doing more than they have been doing. he said that everyone needs to do more. that is really up the foundation of a happy nation. you're being succeeded by the new york times editor. do you think the huffington post needs to cover more news between coasts?
more news so that we wouldn't be so surprised by the election of donald trump if we understood how people in the mid of the country were feeling? arianna: first of all, i am absolutely delighted with my successor at the half and imposed. a fantastic combination. i'm so excited to see what she is going to do. one of the things that is important about her is that she has incredible global knowledge. she has been a journalist around the world. the huffington post is a global company. 50 percent of the traffic comes from outside the united states. in 17 countries. so it is fantastic to have an editor in chief who has tremendous knowledge about how to operate a global media company, especially at the time when there is so much happening around the world.
today ort is italy south korea or the announcement of the timing around brexit. having someone at the helm of who really knows how to navigate these water, it is really a blessing. emily: hearings about the at&t-time warner merger happening today. i'm curious as to what you are hearing about phone companies owning media companies? as long as they don't interfere with editorial, that is what matters. phone companies can own media companies of long as they leave them alone. emily: lesson we spoke, the deal
was fresh. -- it has aa real revealed that they were the target of a massive data breach. you tell me at the time that you thought they made a good fit. arianna: they are a tremendous synergy. she could have a great role to play when it comes to the news part of yahoo!. this is still in the future -- this is four to 1117. emily: any thoughts on what marissa mayer should do? arianna: first of all, she should get more sleep and re-and enjoy your beautiful family. she has a great future ahead. emily: that was arianna huffington.
apple is said to be pressing hollywood studios for faster access to movies. fox, warner bros. and universal have said they are looking for high priced home movie rentals shortly after studios. some are dealing with an option with apple itunes as an option. could a new era for nintendo be upon us? a bold enough move for nintendo to stay competitive? ♪
fitbit didn't disclose terms. but this debt exceeds this amount. turning now to the video game world. this has been a year of transformation for nintendo. intoompany made its jump nintendo. and then, the phenomenon that was pokemon go. nintendo stole the spotlight with the surprise announcement from tim cook. ofplease welcome the father mario. afirst solo game. exclusively on apple's ios with some industry members saying it will be an even bigger hit than pokemon go.
the nintendo president joins us from new york to talk about the upcoming launch. we are working very hard with our folks at apple. to make sure that had a server capacity standpoint, we are prepared. the numbers will be more significant. emily: so there are three versions of the game. $9.99 to unlock. that is a risky strategy. how many people do you think, of the 20 million, will pay for that? >> there are three different modes within the game itself. there are over 24 different levels. we believe that i have percent of people who begin to play super mario run will go on to app patient.full
and i say that with the experience on the ipad. once people start to play, they are hooked. so we think that the percent willupgrade to the $9.99 be very high. emily: what is the timeline to get this into android? >> it is for now. game, weto develop the had to focus on one platform. we decided to focus on the ios iphone and ipad. in the future, it is coming to android in 2017. emily: do you have any concerns about alienating that market? focus is to bring it on to all of those devices as quickly as possible. that theut making sure experience is great. as alle see the market
of the devices out there so certainly it will come as soon as we can. part of the pokemon go phenomenon, plenty of people have reported that the momentum is slowing down. the >> we did a special event during thanksgiving. and there is about to be a new one. we have seen that engagements bike back up. as we can to -- as we continue to provide that to the consumer, they will jump back in. to makes, continuing ongoing improvements to the game. making special events happen in the marketplace. again, half a billion downloads is a huge base of consumers to continue activating.
emily: sony is hot on your heels. how do you see the balance playing out between consoles and console games and mobile games this year? a nintendo perspective, our mission is clear. many consumers as possible engaging with our intellectual property. going to do that with smart devices and a dedicated console business but also with our licensed merchandise initiatives. we did something with fans that was tremendously successful. will best exemplify our relationship with universal studios. we believe that gives nintendo a tremendous advantage. emily: hadi you see the shakeup of pc and console? where do you see the most
engagement this year into next year? >> for us, we want to seeing gators -- we want to see consumers engage with super mario on our home console business. we want to see them do that on the three ds business. we want to see that on mobile. if they are interacting with ip and are enjoying it, we're not concerned. so we are not placing bets on one area or another. with our developers and the willlay we develop, we wait in the long term. about vr have talked in the past and people said this would be the year that it went mainstream. do you think that was premature? at the data, it will be suggested that it is.
in the end, and we have learned this through our own business. in the end, it is about providing consumers a compelling experience that brings a particular form of technology to life and i don't believe we have seen that. i do believe that there is long-term potential for that platform. but to date because has not delivered on the initial numbers that we were rejecting. -- we were projecting. came out withs the long-awaited hand controller this week. it is meant to let gamers use their hands while using the oculus rift headset creating an even more immersive experience. -- talked about how the potential for vr goes beyond video games. >> imagine medical students in s, could doorm
the point is for leaders in silicon valley to build relationships with the incoming administration it initially distrusted. among those attending was chuck robbins. the meeting is scheduled for wednesday. discovery communications is preparing for a world where people no longer subscribe to 100 tv channels. in the u.s., the company has seen around a 2% annual decline in net prescribers. -- take on the road ahead for content in the wake of the at&t-time warner deal. >> the at&t deal is another indication that every cable operator will need a mobile solution, whether they own it or not. so this used to be multichannel, this pipe became hard foam and now it is broadband.
emily: cbs kicked off december by announcing a major streaming deal. announcing it obtained rights to carry nfl games on the all access streaming service. david westin sat down with the chair from the media conference in new york and began by asking about the country's distribution strategy. take a listen. we are primarily a premium content company. our job is to provide great content for cbs and for showtime and for the cw. if we do that, all the distributors are going to pay us for what we are offering and we don't necessarily need to be in distributions. david: at&t needed time warner so they've got the thing. at some point you will have distributors coming to knock on your door.
>> and sure there are distributed out there who would like to do that right away. we are a controlled company. so that is more difficult. but i imagine there plenty of people out there, especially when you see at&t pay a lot of money for time warner, that a company like ours would be valuable in the open market. and you had any discussions yet? >> and not going to say. david: do you have any concerns about it? in the sense that you have a big just a reader like at&t, particularly in wireless, they could favor time warner content? look, we're taking a good look at it. if it is advantageous to us or not. we have not weighed in yet on what we're thinking about.
inid: per you interested regulators coming in to have rules and regulations? >> generally speaking i am not a fan of regulators. with the fcc going forward we hope there is a loosening of regulation. david: let's talk about directv no. they launched it without cbs. there was a lot of news but you decided to sit it out? why? >> we always said we would join any service as long as we get paid fairly and the conditions we need are met. we are in active discussions with directv. we have different needs than some of our competitors who own a lot of cable networks. our centerpiece is the broadcast network. i expect us to make a deal with them and to be a part of it.
again, we wanted to be a fair deal. avid: have you figured out way to include broadcast stations in that? as we move into the over-the-top orals top world, can broadcast stations participate and can it affect the valuation of your stations? >> the great thing about ott is resetting the table. transition tothe spew or negotiations, they were already paying a lot of money to different cable networks. and we were coming in after the party started. now that there is a brand-new party, we are the most watched network. paid more because more eyeballs should equal more pay. so we intend to be on every over the top service but we don't think this can exist without getting the nfl or a bank or
stephen colbert or 60 minutes. and we are a necessary part of any package. david: so they're building a new business. want to get the exclusive content. how often does that come up? , the abilityight to get all the shows of a certain season, we only have on all access. a very highaid us offer for that, it would be available. emily: that does it for this "best off the bloomberg technology." new times. our thesday, full coverage of may 2 ipo. all episodes are live
>> welcome to bloomberg businessweek. bring you the best from the magazine headquarters here in new york. we going to the conflict in alphabet. moon shot could get messy and expensive. while donald is probably the his success,about nigel farage comes in as a close second. all of letterhead ahead is on bloomberg businessweek. ♪