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tv   Bloombergs Studio 1.0  Bloomberg  December 30, 2016 5:30pm-6:01pm EST

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against president obama's expulsion of 35 russian diplomat. he tweeted, great move, i always knew he was very smart. putin declined to expel exploit ofespite the his foreign ministers. and specializing in russia relations and gave his take. >> gliding donald trump is trying to do is negotiate new understandings with putin, who wrote the art of the deal -- he after all wrote, the art of the deal. and will the sanctions -- with the sages, what are we getting back? >> the senator of maryland the top democrat on the foreign relations committee says he expects congress to take action beyond white house sanctions. he spoke on bloomberg today. >> obama waited for the report from his advisors and the report was just obtained. i think he calculated as to what
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was the appropriate response mode part of that has not been made totally public and he has indicated it may not be the end of the action taken against russia and i can assure you that congress will want to weigh in as an independent branch on the issue. taylor: and questions remain as to whether donald trump's secretary of state pick can separate his role from his previous job as the ceo of exxon mobil. and the ukrainian president met with a delegation of u.s. senators headed by john mccain and lindsey graham, gathering today to discuss the situation between ukraine and russia. he then gave the senators the order of freedom award for their contributions to the ukraine-u.s. relations. senator mccain has scheduled a hearing on capitol hill to discuss cyber threats and russian hacking allegations. and at least 10 workers are dead and dozens could be trapped after a mine collapsed in india. rescue crews are at the site and
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workers are being treated nearby. the mine is owned by the state government, but least to a ased to a- le private contractor. and an autopsy on george michael has been inconclusive. his death is the treated as unexplained, but not suspicious. his manager says he died from a parent heart failure. as a frigid bang deep-freeze ascends on north america, europe and asia. and while the u.s. and canada will get hit with a frigid cold, russell also bear the brunt -- russia will also bear the brunt of a cold spell. this is bloomberg. up next, studio 1.0 with emily chang. ♪ emily: one of the fastest
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, how we view apps ourselves from a single photo. in college, job taking a role at twitter and launching instagram as we know it. two years later, he reunited and made a silicon valley history, agreeing to sell instagram to facebook for $1 billion. the company has 13 employees and 39 million users, but today over half a billion people on the planet is instagram every month, sharing more than 95 million photos and videos a day. joining me today, the instagram cofounder and ceo, kevin sister in. -- stiistrom. emily: thank you for joining us. you were born in massachusetts. >> correct. home of the panthers. emily: what kind of kid where
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you? >> nerdy. intok back and i was cross-country running. i was on the third lacrosse team. i was not a job. emily: when did you become interested in technology? >> my dad got us us first computer at home and i played video games all the time and realize you could create your own levels. then i took classes in school for programming and i want to make my own games, it was something that inspired me. emily: more important, photography. you got involved with photography at a young age. >> it was hard to find me without a camera in my hand. you know those tax, 10 packs of thumb, iwould go to them and they were not cheap. but i love taking photos. florence ind in college and i sat in a dark room
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they're developing photos and that is where he learned about filtering, adding the chemicals ath and iteloping b would change the colors of the photos. i brought with me to instagram. emily: and that is how you learned about square photos? >> my teacher said, you will use this, a plastic camera that took square format and i learned to love it. it was easy to take those photos. you had antanford, offer to join facebook. >> yeah. emily: what happened? >> there was a girl involved in that did not want to leave school. and i spoke with a lot of mentors at the time you said it was going to go away. and to this day i think about that decision. i think it was the right decision. and when i think about it, i think about how many
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technologies come about that people doubt at first and i took that with me, those people who did not think instagram would work, sometimes it is hard to refute, but you need to keep going and that was a lesson as an entrepreneur. emily: you went on to google. jackhen you worked with dorsey. what was that like? kevin systrom: when i showed up for my first day of work, i got a puzzled look and they were like oh, that's right, we hired an intern. they were super nice to me and without that experience, i would not have the same passion for social media as i do today. jack is super creative and an awesome engineer as well. it was great to meet them and learn from them very early on. emily: what you learn? kevin systrom: you learn that your first idea does not always
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work out. i learned at odeo, not at twitter. as they made the transition, i realized that often when you are a company, you need to put it into something else. and instagram had a similar history. we were working on a game called "bourbon" and that turned into instagram. emily: the first instagram photr foot and a stray dog, was that consequential? kevin systrom: if i knew that instagram would get to this place, i would have tried a little bit harder. my girlfriend is now my wife. and she said, i'm not going to post photos unless they look great, so you should add filters. i did, and i added it to the build and took a photo of her foot and a dog. [laughter] i posted it as a test and it lived on forever.
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emily: how quickly did it become something that you realized would be not just big, but really big? kevin systrom: i may have been a little optimistic, but the second we launched i thought there was something new and different here. i had worked at companies that struggled to get 100 people to sign up in a day, and the first had 2500 people sign up. the way we saw it, we had lightning in a bottle and it was our job to capture it and continue to work on it, not screw it up. to this day we think about that , is our job, keep it going, it has a life of its own, don't get in its way and make it awesome. ♪ emily: are you afraid enough of snapchat? ♪
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emily: tell me about the moment or transition where you began to contemplate selling the company or became more open to the idea. kevin systrom: this was four years ago, so we were in a very different place. it was 13 people, i was four years younger, i didn't have as much experience as a ceo. when i look back about that decision to sell to facebook, i think the pros of it are that we got to pair up with a juggernaut of a company that understands how to grow, build a business, and has one of the best management teams intact and got -- in tech, and got to use them as a resource. that is the hope and dream and most acquisitions don't work out that way. when you look at how many acquisitions have failed, others have left abruptly after selling because of culture clashes, changes in vision, whatever.
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misalignment. we have been able to do this for over four years and that is what is awesome about that decision. back then, it like came true. , we got a little lucky. meaning not a lot of people get to this point, but we worked very hard to get here. emily: at the time you are contemplating raising money. you were talking to twitter about selling to them. what happened when mark zuckerberg came into the picture? kevin systrom: we decided it was the right thing to do and closed over the weekend, i think it was easter weekend. i remember being at his house and us the like let's do this. , lawyers were everywhere, we were signing documents, figuring this out. it was a whirlwind, because we were in a no man's land for 6-9 months, trying to figure out if the deal would go through. and once it did, we were able to partner immediately the value became clear, because we were able to fix the infrastructure.
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every day that went by we were struggling to keep the site up, struggling under our own growth. we were able to figure out spam quickly and were able to start using their tools to fight spam. a lot of booze things happened immediately after the acquisition and help the company -- helped the company grow and skyrocket. emily: why not twitter? kevin systrom: there were a lot of companies. google was interested in instagram's growth. this one was the one that took it seriously and mark acted quickly and decisively. it feels native, and it feels like it makes sense. emily: google was interested to? kevin systrom: everyone was. i do not think it was google specifically, it was just companies were interested in what instagram was up to. we were an anomaly. we were 13 people, but we had all this growth. and people are kind of like, they could not get why those two
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things could be true at the same time. and i think a lot of people wrote off photos. people do not understand how important photos would be for the future of social media and expression. if you look at the way that people express themselves, it is not just through chat it is through photos and sending them. no one quite understood that that was the resolution -- revolution we were about to embark on. you sold it for $1 million, and then citigroup valued at $35 billion. did you ever think about what you just did? kevin systrom: when you talk to mark, he gave only 99% of his wealth. we are not in this business to make money, we are in this game to change the world. if you talk to entrepreneur is --t matter, they venture they measure value on what it
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does for the world and you unlock some kind of value, that's what we focus on every single day. emily: when mark zuckerberg bought the company he pledged to , let you work independently. has he been true to that? kevin systrom: he has been true to his word. his involvement in the company is through meetings with me. i have learned a lot about the company through him, about the transition to advertising, to a more global community, strategy, he is one of the most long-term strategic thinkers i have ever met. think of it like having the best board member in the world. imagine how many companies would love to have mark zuckerberg on the board. that is what we get. it is independent, but you get amazing guidance from someone who has built a tremendous compy. i think our transition to advertising was interesting. i was under the belief that if we had fewer advertisers that we would have better quality, but it was the opposite. if you have more advertisers and are able to bring in an entire ecosystem where they compete
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against each other, you get higher quality advertisements. that is something i did not realize at the time. and i remember saying i felt the , same way when we introduce d advertising and it turns out i , was able to learn a lot from them there. emily: you meet with not just mark but jan and brendan. how was instagram taking on things facebook was looking at, like virtual-reality? kevin systrom: if you can experience -- feel like you experience whatever is happening in the world, an imagine putting on a headset and being at a coldplay concert, being at a riot anywhere in the world, or something as simple as a friend's wedding. that is the kind of experience we love to create and i think virtual-reality in the coming years will play a critical role in that coming true. emily: how about artificial intelligence? do see more of that in the future? kevin systrom: for sure.
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i mean one thing i have learned , through the history of instagram is that the more personalization you add, if you can have an experience that caters to you, you can use machine learning and artificial intelligence to make a much better experience for you. emily: what about e-commerce. do you think about adding a "buy" button to instagram? are there any plans for that? kevin systrom: where we start and where we will end is at two different places. we have a buy button like that on instagram, but the transaction does not take place on there. we want advertisers to create their own products or post, and then they take action on the advertiser's website. if we can make that more seamless in the future, of course we will. they are just starting to walk before we run. emily: who do you see as competition? kevin systrom: where do i start? we as consumers only have
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limited amount of time to pull out our phones and do something, so anyone competing for time. emily: one employee told us they are concerned that instagram and facebook are not more scared of snapchat. are you afraid of snapchat? kevin systrom: it is not our job to be afraid; as understand what is happening in the world. we are competing amongst a lot of different services for eyeballs. getting to 500 million users is an amazing feat. we have 300 million people that open up instagram every single day, 21 minutes a day. we are absolutely not sitting happy, thinking it will last forever. we need to keep innovating and producing product. ♪ emily: you redesigned your logo, which some people did not like.
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emily: there was a lot of drama when you hired kevin neil.
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you are a product focused ceo. how much impact can the head of product when you are the decider? productstrom: building is much more operational. how do you build it? when you have an idea, how does it become a reality? that is something that kevin brings to instagram. he has done it before and he has seen it to scale. i do not like to say i am a good product manager. the team will attest, but i love thinking strategically. when you combine kevin's personality and expertise and my personality and expertise, not only do you get two kevins, but you did a great pair, kind of like getting a yin and yang of product head. emily: do you think twitter can turn itself around? do you think you can re-accelerated growth?
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it is an amazing platform. and i think every company along their course of growth, hits speed bumps. it happens. it has happened to instagram and facebook and it is all about how you get out of that. it is a hard question to answer from anyone's perspective, and i respect a lot of what they have done in the past year. emily: you mentioned every day gets more complited. how much of instagram's success has been contributed to simplicity? kevin systrom: i think that is the complex part of instagram. gets easy to let a product bloated and it is easy to say to every employee, go work on whatever you want and we will see what sticks. then you have a product all over the place and it does not have a single voice. that is complex. managing to get something to be straightforward, even though it has complexity behind the scene, that is the hardest part of any ceos job.
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saying no more than you say yes. emily: what are some features that you ponder that you eventually said no? kevin systrom: we had a lot of people asking for sponsored filters at one point. a toothpaste company that wanted a teeth whitening filter, a funny example but it makes sense. because, we have filters, we should do sponsored versions. but we focused on simplicity and doing the right thing by the consumer, which is not to make it commercial and make it great, focus on what people love most. there are decisions like that every day that are easy, you can make a few bucks from, but add and doity to the product not really help the bottom line either. emily: you're redesigned your logo, and some people did not like it and called it a travesty. kevin systrom: i knew going into it it would be a difficult change. there is not a single company i've seen, whether it is starbucks or gap that has
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changed their logo and it has been easy. not a single company. i think the question is, how much work you put into it before you get there. and how much result you have. are you doing it for the right reasons? we wanted to give people the idea that we were not just about photography, it was more general than that. it's about colors, simplicity. we wanted something that would scale across different mediums, that would look great on a t-shirt billboards, anywhere. ,the very early logo would not do that. i had a heavy-handed designing it. the current one i did not have a heavy hand in. we have an amazing design team that thought it through on all of these things. what you see in every brand is that it goes from being complex , to simple, to iconic. we skipped a few parts.
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but what did i learn, it is hard. and it is going to be ok. emily: you also made your oflytic instead chronological. something but did not like that. is it working the way you hoped? kevin systrom: engagement is up because of it. people are liking instagram more, they have more feedback on their post, post they want to give feedback to. and the good news about the algorithmic feed, unlike what people believe, it is not actually not chronological, it is fairly chronological. it just takes the stuff you haven't seen an reorder that to make sure you see the best stuff at the top. people miss more than 70% of their feed and that is not ok with us. emily: you are traveling around the world, fashion shows, great events. what has the last year been like to you personally? kevin systrom: i would not have thought that the nerd would be a
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fashion shows. it still feels weird. i go to these things because i am a representative of the brand, instagram, and i believe by having relationships with these people in different industries, whether it is the pope or doing fashion dinners with anna wintour, they could not be more different but they are extremely important to the instagram community. emily: what is your single piece of advice for in -- for aspiring entrepreneurs? follow yourm: passion. thatned down so many jobs may have looked like the right thing to do, but i turned down so many jobs. emily: kevin systrom, ceo and cofounder of instagram. thank you so much for doing this.
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♪ >> from our studios in new york city, this is "charlie rose." charlie: "moonlight" is the new film from writer and director barry jenkins. it is an adaptation of tarell mccraney's play, "in moonlight black boys look blue." the film focuses on three pivotal time periods in the life of a young man as he comes to terms with his sexuality and struggles to find his identity. coach writes that the film has the best take on black masculinity, ever. here is a look. ♪


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