`Titanfall' a Game Changer?: Bloomberg West (03/11)

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March 11 (Bloomberg) -- Full episode of "Bloomberg West." Guests: Harvard Law School's Susan Crawford, Magid Advisors President Mike Vorhaus, Domino's Pizza President and CEO Patrick Doyle, former television executives Jeff Gaspin and Jon Klein, and Liftopia CEO Evan Reece. (Source: Bloomberg)

Live from pier 3 in san francisco, welcome to "bloomberg west," where we cover the global technology and media companies that are reshaping our world.

I'm emily chang.

I'm here where cory johnson, our editor at large.

A new game comes out on xbox one.

Could it be enough of a big blockbuster to replace halo?

Will tesla have to put -- -- get out of jersey?

But first, our top tech headlines.

An outage hitting twitter.

It is the longest since twitter went public.

The outage was caused with a fan to its services.

It rolled back the change.

Salesforce will put 18 acres of land for sale in the san francisco mission bay area.

Salesforce bought the land back in 2010 four 200 $78 million with the intention of building a new headquarters there.

Instead, salesforce has rented more than 1.3 million square feet in downtown san francisco.

Disney's tv sweeney will leave the campompany next january.

She says she is leaving to pursue a new career in tv directing.

Another big story today -- a bank president in d.c. making his case for a sprint-mobile merger.

I believe this is a big deal.

But at&t and t-mobile were able to merge -- is suggested that t-mobile will not be able to be gobbled up by someone bigger.

He is not summoned to be deterred.

And is not pulling any punches.

Take a listen.

American consumers use less data traffic, but pay more.

Pay more.

Is that a good suggestion?

Is that a good situation?

He is speaking their about u.s. mobile broadband falling behind.

Why is it more expensive and slower than the rest of the world when this is a place where internet was invented?

Competition is one of the reasons.

Cable providers have spent so much money with the existing infrastructure when with analysis, they do not want to spend money.

He is the suggesting that wireless could do more, especially the clearwire spectrum.

They can merge with t-mobile as one service.

This is a guy who is a peculiar individual.

May be a short-term list or long-term list.

This is a three-year plan for his life.

He's looking forward to what he will do with this company and with this notion of this merge.

Hopefully he will let us in on his immortality.

Elixir.

He also spoke on charlie rose about the possibility of a sprint-t mobile merger and how he would approach that.

Take a listen.

Three heavyweights.

You like that, don't you?

Yeah.

I like the real fight in the pseudo-fight.

If i can have the real fight, i go into a more massive fight role.

You undersell everyone?

Yes.

You are willing to postpone profits in order to gain market share?

Exactly.

I went to be number one.

At least he is to the point.

He has got lawyers in seven cisco.

He has deal guys in boston.

-- he has got lawyers in san francisco.

He has deal guys in boston.

What will be best for consumers in the end?

What kind of businesses can flourish like that?

What will regulators decide?

They made it clear when at&t tried to buy two mobile that they want four separate carriers.

We are going to talk a little bit more about this.

We have got a special guest joining us and an author.

Susan is the author monopoly power in the new gilded age.

Susan, nursing for joining us.

What do you think?

Is this merge are good for consumers?

A price war is always good for consumers.

That is what the sprint ceo was promising.

What is really going on is a fight over the enterprise market . sprint wants to be able to gain share their.

We're going to have a lot of price cutting in the consumer market gnome after what happens.

This guy says, i can take a big chunk of the enterprise market if you let me in and take over two mobile.

Otherwise, it to mobile would keep cutting prices and making it more difficult for him to enter that new enterprise market.

In particular, the enterprise market, is it something that is more business or higher margin?

Why is that the goal?

The consumer market is pretty saturated.

We are seeing very little growth.

Just about everyone has smart phones.

It is a fight over existing market share.

Prices are going to be going down.

Two mobile is doing that already with much lower price structure.

Sprint has a high fixed pressure checked the moment.

Some of them would need to make big changes in an order to keep t-mobile.

They see no growth on the consumer side.

He sees big growth on the enterprise side where he has got very high capacity spectrums and carrying lots of information over very short distances.

2.5 gigahertz?

That's right.

A carries lots of information.

That is great for wi-fi and businesses.

You can see that there is a tremendous opportunity for him.

I want you to take a listen to the argument that was made on charlie rose when it comes to verizon and at&t and the fight that he is preparing for.

I need to get the government heavyweight.

It is a heavyweight fight.

[laughter] that's right.

I cannot be tiny.

They would squish you.

They cannot ignore you.

I want to make them fight back so they also become us old instead of fat.

It is called competition.

Yes.

It is good for the united states.

Is there any sense regulators will back down from this idea that they want for carriers?

How realistic is the t-mobile merger really?

At the moment, doesn't sound terror of -- terribly realistic.

When they said four, they really meant four.

They will keep going with that.

It is hard to see them backing down.

When he is saying is to create a monster to take on the other two monsters.

The department of justice may not want to see a monster.

They might want to see four battling it out.

What would he get out of this in the end?

Do you think he knows he is embarking in a losing battle?

Or does he think he has a good shot?

I think he is using the high prices being charged by verizon and at&t and the relatively slow speed as a talking point that he thinks will be very encouraging to regulators, particularly the fcc.

Tom wheeler has said before he was confirmed that he could use the opportunity of a merger to impose conditions that he cannot get through the front door.

That is very attractive.

He sees that and he wants to take advantage of that opportunity.

With the recent success of wireless at t-mobile, is that suggesting that maybe t-mobile could stand alone and go to a stronger competitor?

Ironically, their own success results in their less likely to sell the company?

T-mobile, people say they will take about a quarter of new additions in this coming year.

They are really attracting buzz and energy.

It is a wonderful company.

Great ceo.

I can see them having their own folks.

-- voice.

I see t-mobile having a different kind of character at this point.

Last time i spoke with the t-mobile ceo, you sort of indicated he wanted to run a sprint-t-mobile combination of that happened.

Who would run this thing?

The people with the deeper pockets.

I do think it is unlikely.

I think they will try to get more low band spectrum.

It will keep grabbing customers and coming up with innovative pricing plans.

All of that is good for consumers.

Susan crawford, visiting professor and author of "captive audience." thank you for joining us on "bloomberg west." titan fall is out today.

They want to boost sales of the xbox one.

You can watch us streaming on your phone, tablet, and on bloomberg.com.

Microsoft is betting and online multiplayer game "titanfall" will help supercharge sales of the xbox one.

The sci-fi combat game is being offered in bundle with the xbox one.

You have got an xbox.

Are you excited?

I kind of need a new game right now.

I decided to dive in and get an xbox or i can cover this better.

I find the games fairly obsessive.

A lot of people are optimistic about this particular game.

They are optimistic about the prospect helps sell the xbox.

It appears to be out selling -- there is another device that appears to be outselling xbox one.

What we hear from some people is that we are seeing twice as much in terms of sales of the playstation than the xbox.

The playstation is cheaper.

With us to discuss is our guest.

He covers the gaming industry.

Also with us in new york is our video game in-house reporter, matt miller.

How good is this game?

This game is really impressive.

You can see that by what people are saying online who have been playing it.

You can see it in the critical scores.

His is that dead on shooter game that reminds me of that rate line from the matrix.

"i want guidance, more guns -- i want guns, more guns." i finally got it hooked up and played it until 7 a.m. this morning.

I do not want to say it is the best game i have ever played, but it is kind of like "call of duty" and "halo."/ those are probably some of the best games.

It is in the nomination -- amalgamation of those.

These giant robots you control -- it is amazing.

It is absolutely amazing.

Is this going to be enough to re-energize sales of the xbox one?

X marks made a big decision about pricing.

-- xbox made a big decision about pricing.

It is absolutely working.

We did research a year before.

No question about it.

This is a great game.

I think you guys nailed the description of it.

The real issue is whether it will drive a lot of boxes.

That will take a couple of months to see if this is becoming a massive hit.

This could take a lot of market share from "call of duty." interesting point.

This game is made by the guys who created "all of duty" for active-duty -- acti-duty.

They went over basically had ea fund this.

"call of duty" sold $10 million in revenue.

That embarrasses any movie out there.

It is an amazingly huge franchise.

This is their new sort of brainchild.

This will drive sales to the xbox like "halo" did in 2001. i think you will all be surprised.

The game price itself is so much larger than a movie ticket.

Huge numbers indeed.

You do not just by the kit.

You spend money when you get it.

If you went to a movie and then you went and bought things over and over every time you went there, i think it is pretty impressive, $10 billion for one videogame franchise.

That is an important point.

I'm sorry.

Could you repeat that?

What does that mean for that game makers like activision and ea?

This'll be a huge hit.

They have put tremendous effort into it.

They have got a great relationship with microsoft.

I think it is a challenge for activation.

It is a challenge to make the next "call of duty" really spectacular.

The last one did not really hold that.

-- hold up.

Deal of "ghost"? --d o do you love "ghost"? i hardly hear that in a focus group.

They have more stuff to buy in the game.

I will sit there and click a, a, a, a all day long.

That is the big secret.

The a button is where you buy more stuff.

Matt miller, what would we do without you?

[laughter] thank you for giving us the scoop on that.

Coming up, dominoes sound like it is the most tech savvy pizza company out there.

I'm hungry already.

That is coming up next.

? welcome back to "bloomberg west." i'm emily chang with cory johnson.

Using voice commands with a fast food app.

It is really great.

Take a look.

Ok.

let me take care of it for you.

Your order has been placed.

It will be delivered in 20-30 minutes.

Your order is being prepared.

Would you like to track your order?

Sure.

Ok.

this will be available next month.

The ceo of dominoes is with us now from new york.

Did you bring us pizza?

[laughter] we have got it in new york and it will be on its way to san francisco soon.

How is my delivery going to be different?

What we're finding as we give the opportunity to customers to order from us in more ways of they can do it anytime, anyplace they want, it is growing sales.

Customer satisfaction when the order digitally is far higher than ordering over the phone.

It is over 40% of sales.

We're looking at new ways we can do to have customers access the brand to order from domino's. we are excited about it.

You also got dominoes throughout salt lake city weakened by the pizza from the oven door?

We did that in one store.

We wanted to give people a sense of how we are hand making the pizza.

It starts from great ingredients.

They can get a look at the process in our stores.

To be clear, you're not delivering the pizzas to the car.

Do you expect us to add incrementally to sales?

What kind of bump would this give you?

It was launched in the second quarter.

I think we will get a bit of a bump every time we come up with a new platform and his people a new way to access it.

We still little bit of a lift from that.

We are thrilled to be tied in with a brand like ford.

It is an iconic brand and to have this ability and to go in and you order over the ford sync , we have got profiles of customers that they can set up that will have their easy order there.

Vacant tokenize -- they can tokenize the credit card number.

Even for delivery, you can say to deliver it to the car.

If they go in for carry out, they will get it right there.

You guys have taken a few risks.

You admitted a while back that domino's had a quality problem, a taste problem.

You started exacting -- ac cepting bitcoin.

Talk about the willingness to take these risks.

We try to be smart about it.

We do a lot of research around it.

This is a retail brand.

You do have to move quickly.

I would rather get twice as much done and occasionally make a mistake.

When you're doing things that are not huge investments, i think there is a real advantage of moving quickly and to innovate and to try new things.

If it doesn't work occasionally, that is all right.

We will be waiting for those pizzas here in our studio.

We will be back.

? this is "bloomberg west" will recover innovation, technology, and the future of business.

I'm emily chang.

Pdd spent money for the fuse tv channel.

-- p. diddy bids for the fuse tv channel.

Jeff and john are launching tapp which stands for tv app.

There'll have personalities from the world of sports, politics, fashion, and entertainment.

And is in los angeles with more.

We have heard a lot about these high-profile players launching their own online networks.

In this case, the idea is to great networks for a whole bunch of well-known names.

Subscribers would pay a monthly fee for access to each network.

Jeff gaspin and jon klein joins us now.

When did you decide this is what you wanted to do?

You look around at the television industry.

It is exploding rapidly.

It is changing so fundamentally and quickly.

We want to be a part of that.

We have been a part of a few previous disruptions with reality television and online video.

It felt like the moment and the right time.

Explain how this is going to work?

Basically channels for individual personalities.

A lot of different areas.

The pricing is on a monthly asis.

We are in the neighborhood of $9.95 per month?

Basically a $10 per month prescription.

If you buy the whole year, you get a discount.

That fee is for each channel.

This is not for a bundle.

We hope to launch dozens of channels over the next several years.

There are -- they are going to be personality based with people who are super fans.

Viewers and users who cannot get enough of these particular personalities.

They want a more intimate relationship with these personalities and current -- then current tv affords.

We give that with these channels.

Let's talk about the potential.

There was a report that you were talking to sarah palin.

Any truth to that?

I will give that one to jon.

We're not talking about specific channels or talent.

Sarah palin is the kind of personality who has got a massive social media presence.

4 million facebook followers or something like that.

She has a core group of followers and supporters to hang on her every word.

At exactly the characteristic of a good channel if these channels -- that is exactly the characteristic of a good channel that these channels would have.

We are grading micro-channels for these fans that would be their dream come true.

Everyone would have someone that they would pay $10 a month to get more of.

In the traditional tv, and i cannot put on as many channels.

You must have a passionate fan base for this to work.

This is not just you guys are focusing on three or five or six people.

You want a fake group of people -- big group of people.

Absolutely.

There is an intimate -- infi nite amount of possibilities.

You have to believe that you can gather thousands of subscribers paying around $10 a month for this to make financial sense and for you to do an individual tapp channel.

Right now that is a model.

It could change over time.

This would be one of the basic life forms for anyone with any kind of fan following.

Youtube has become that.

They have got a youtube channel.

Everyone has got to have a tapp channel as we move forward.

Any possible names you want to mention today?

We are just announcing the company today.

We do not want to focus on any particular talent.

But we will.

We have got a good roster in the works.

We have been rehearsing.

Right now we are in the middle of rehearsing the first channel that will roll out in the next several weeks.

We are very excited about it.

Talk about some of the personalities that are helping to back this effort.

Eric schmidt, the executive chairman of google, is one of your investors.

Has this group come together -- the discovery have more involvement than just being an investor?

Does google or youtube have some involvement behind the scenes?

Discovery is on our board.

We have got relationships with people who are on speed with what we are doing.

They're great people to have.

I think all of them are eager to be participating in this next wave of disruption in the media.

The one thing that we found every time we talk to potential investors is that they all have individuals that they suggested to us.

Though talk to this and go to talk to this.

They would be great.

We would pay a subscription fee for this personality.

The one thing we found in all of the investors is that they were really passionate around the idea and they thought would make great channels.

Before we go, television traditionally is tied to advertising.

Here is a business that is focused on subscription instead of ads.

What does that mean in terms of the future of tv that is still catering to advertising?

We think there is room for both ad supported tv and subscription supported television.

Tapp channels will accommodate both.

Our focus in the beginning it's almost exclusive to subscriptions.

Just as radio lives alongside tv and cable to go alongside broadcast and internet goes alongside all of them, subscription-based channels like this can live alongside the traditionals.

These channels are a complement to the current offering out there.

They are very specific.

They really target a super fan.

This is not like netflix were you paid subscription and you get a plethora of content.

This is not a general interest network.

These are very specific for very specific interests.

We are living in an age of specificity.

You can go online to get the exact sure you're looking for instead of wandering around macy's all day.

That is why we are doing when it comes to tv.

The super fans will be waiting for the personality names.

Thank you for joining us on "bloomberg west." emily, acta here.

-- back oto you.

Coming up, we will be talking about the bitcoin.

? i am emily chang.

This is "bloomberg west." dianne feinstein is accusing the cia of improper and possibly illegal computer searches.

She says the cia searched a special senate computer network.

The intelligence community was using it to investigate the cia treatment of suspected terrorist dating back to the bush administration.

The troubling fact that the cia had destroyed videotapes of some of the cia's first interrogations using so-called enhanced techniques -- john brennan insists the cia did not hack into senate computers.

Tesla shut out of new jersey.

It was voted today to ban the automaker from selling directly to consumers.

Tesla said it only leg yesterday of the rule changing coming to the most densely populated u.s. state.

It is a big deal.

We know that the places their sales have the dominating our certain zip codes -- the seattle area, the bay area, southern california, and the new jersey area.

Tell us the story here.

Why did this happen?

It looks like this one popped up as a bit of surprise yesterday.

Concurrently, tesla is dealing with legislators and car dealers in ohio.

They were scheduled to have a meeting today to see they could work out a compromise.

Late last night, they suddenly discovered that this was coming down very fast.

The company thought that they were working for this legislative process there and that they were going to be cleared to continue running their two stores in new jersey.

It did not work out that way.

It was a unanimous vote to essentially bar any form of direct auto sales in new jersey.

They came up very fast.

No public hearing.

That was a very interesting and not entirely expected development.

Is this a done deal?

They lost this vote unanimously.

Do tesla sales in new jersey stop immediately?

That remains to be seen.

On a conference call today when the company was asked about the timing, a look like as early as a month.

Potentially they could lose their retail sales and licenses in new jersey.

They will turn to the legislature and see if something could be worked out to craft a bill that would overturn this decision.

Failing that, they are hinting they might turn to the federal court.

This addresses a broader issue.

New jersey is the latest battleground for this.

The company has been fighting it out state-by-state over the past year.

The u.s. has strict auto franchise laws that regulate how far cars can be sold.

Tesla is pounding that with a direct sales model.

It has been blocked in some states such as texas and arizona.

New jersey is the latest.

They're probably going to end up turning to the federal court and plead their case.

Would tesla consider another model selling via galleries or form some kind of partnerships with dealerships?

As of last week, they do not seem prepared to do that.

You mentioned the galleries.

That is the situation they have with the state of texas.

They have a couple of showrooms.

They cannot engage in any forms of retail operation.

The cars are literally on display.

The people working there can tell you what it is like.

They cannot tell you how to buy one.

You walk into a gallery to look at the car.

You cannot test drive it or find out how much it costs or compare it in any way.

I look at the annual report for tesla.

There is a battle going on.

The dealerships are actively lobbying the legislature.

One or if other states -- you wonder if other states is looking at new jersey as the model for how to fight tesla.

That could be the case.

We will see how this plays out.

In ohio, there was a meeting between both sides there.

It looks like general motors might have weighed in on the side of the dealers to bar tesla from expanding their.

We will find out more about that . that was the first moved that we can see where established automakers might be siding with the dealers.

It is not surprising that they would.

It would publicly say they support the dealer franchise system.

We think that is the best way to go.

It looks like in ohio, that might be the first case where we have seen an established automaker join with the dealers.

We will continue to follow that story.

That was our bloomberg auto reporter from los angeles.

Thank you.

Are you looking to hit the slopes?

Find out how a new app can help you.

That is next on "bloomberg west." ? welcome back to "bloomberg west." there has been dynamic ricing on sites such as expedia.

-- pricing on sites such as expedia.

Now there is e-commerce that is focused on the industry of skating.

We have looked -- skiing.

We have looked we talked to the ceo of liftopia.

Evan tells me -- i asked about the numbers behind this.

Obviously we are a private company.

What we talk about mostly is the opportunity in this industry.

It is a $4 billion industry in ski ticketing in america alone.

What we tend to see is folks using our platform -- i think for us, we are trying to influence as many resorts as possible to have an effective commerce and continue to grow the industry.

Different mountains have completely different technologies.

There is the ticketing and lift tickets and buying the tickets.

It is be will during.

-- bewildering.

Yes.

Historically, haven't had a focus on making their software is as sophisticated as the hardware.

What we have done is proven to them that they can price their products and sell it in the same way that our airlines and hotels -- airlines and hotels have really seem to adapt to changes in the market size.

Absolutely.

Can you do that in skiing and snowboarding?

As we have grown, resorts working with us has meant incremental business for their organization.

It means incremental skating for customers.

We believe there is a lot of opportunity to continue to grow the sport in addition to helping our resort partners.

When you look at this business, why does this have to be a ski commerce tool and why not an e-commerce tool?

Great question.

We have some of our resort partners using our cloud e-commerce during the summertime.

The principles advance sales and e-commerce that make sense for ski and other inventories.

We still have a lot of growth that we are working towards within our core market before going too broad.

Why use for skiing?

Why is ski product?

Focus is good.

I have heard that.

Trying to be everything to everyone -- you lose efficiency.

One thing you are better than a general software.

The price points that exist and how people respond to those price points.

In skiing, one of the key differences is they do not have a finite capacity.

And hotel has 100 rooms and an airline has a certain number of seats.

At a ski resort, it is theoretical.

They never end up booking to that capacity.

We tried a great value for the consumers and run businesses effectively.

One of the weirdest years in terms of snow.

Virtually nothing in california.

Huge dumps on the east coast.

Do the effects of climate change and the unpredictablility of snow season make your software more valuable?

Absolutely.

Whether you look at tahoe -- most resorts are between the extreme positive and extreme negative.

It we help the resorts price effectively, it buys them some intuition from those extreme cases and gets you out on the hill often.

Yes.

It was a such a lousy year in tahoe.

I feel bad for the skiers.

I'm not one of them.

But hopefully next year will be better.

It is time for the bwest byte where we focus on one number that tells a whole lot.

How about the number four?

Four weeks from today, microsoft will stop supporting xbox.

Microsoft is pulling the plug on support.

40% of businesses are still running xp.

This could be a big business disruption or companies that do some kind of upgrade.

A goes back to the idea -- the xbox is not necessarily doing as great as microsoft would like.

Hopefully this new game "titanfall" could help.

Yeah.

That 40% is amazing.

You should have no sympathy for any company that is still using microsoft xp and is worried about being vulnerable to security.

That to me is absolutely remarkable.

They should be allowed to pull the plug for something like that.

It has been around for many years.

It usually takes months for enterprises to upgrade to a new systems.

There could be big secur ity gaps.

What our customers saying?

They will have to switch.

They will have to upgrade.

You wonder if microsoft will backtrack.

They have given plenty of warning for a long time.

All right.

Thank you.

A quick programming note -- do not miss tv tomorrow morning.

The billionaire will join us all day for an exclusive interview coming up tomorrow starting at 6 a.m. eastern time, only on bloomberg television.

Thank you for watching this edition of "bloomberg west." ? . .

This text has been automatically generated. It may not be 100% accurate.

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