Apple's TV Plans: Bloomberg West (07/02)

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July 2 (Bloomberg) -- On today's "Bloomberg West" the focus is on innovation, technology, media and the future of business. Hosted by Emily Chang with Editor-at-Large Cory Johnson and Senior Correspondent Jon Erlichman from Bloomberg's San Francisco studio, it showcases the personalities, companies and trends that are transforming the global economy. (Source: Bloomberg)

? live from pier 3 in san frqn ancisco - this is the late edition of "bloomberg west." we have breaking news will be getting to the services that instagram and twitter and facebook have been having in these protests, but first to our lead.

Apple is trying to become a bigger player in the television market as the company looks to improve its product lineup.

Bloomberg is learning that apple is nearing a deal with time warner cable to get -- to give access to appleseed.

This comes apple -- after apple from hbo and espn to apple tv.

Bloomberg has also learned that ad lib is -- apple is hiring and the former head of marketing at hulu.

We bring in jon erlichman . what do you make of the time warner cable news?

I think it has been pretty clear that apple has been aggressively signing deals to bring more content to what currently exists.

It competes with a similar device, such as the excise -- exports.

Getting a deal done with time " warner -- with time warner cable would allow for more content that is all locked up in traditional cable agreements to come to apple tv.

Apple is gaining a lot of experience on the road to a more significant apple tv product by doing these kind of deals.

It also makes you wonder if apple is ready to be in the traditional tv environment.

If they were to come out with a traditional tv product, are they willing to play by the rules of today.

That would feel a lot different than the music industry and how the game changed their way back when.

Meanwhile, bloomberg news is reporting that apple has hired a former hulu executive.

What can you tell us about that?

It is interesting that as hulu is shopped around, and we have talked a lot about the bidding for that, if directv or at&t were to acquire that, would that leave him in a position where he would not be sure about his future at hulu.

If you think about some of the changes thehulu, the ceo -- changes at hulu, the ceo left not too long ago.

Here is another departure.

All of a sudden, you are raising questions about how many executives are staying at hulu at a time when this business is potentially going to new owners.

Thank you so much.

From apple to another streaming device, the x-box.

The president is calling it came over at microsoft just weeks before the launch of the new x- box.

The ceo of zynga is credited with growing the consul market.

How big a blow is this to microsoft?

Joining me is a senior analyst . how big a loss is this?

The timing is unfortunate, for sure.

Realistically, most of these strategic decisions have been made.

The launch is baked.

His experience is very much in video games.

Perhaps this gives microsoft an opportunity to fight to the real battle, which ultimately is against apple and google in the living room.

I think there is a strong competitive battle ahead against sony in the fall and for the holidays and that core gamers are expecting the xbox to launch and that the device will be ready in time.

Who are you thinking for possible replacements?

There are internal candidates within the team.

Phil spencer, who has a lot of video game experience.

If they want someone with more on-line services pedigree, yusef medi would be another viable candidate.

Externally, i think microsoft would need to look get people who have a combination of platform expertise as well as device expertise.

They could be looking at companies like apple or google as a source of talent as well.

Don mattrick was said to be looking at the position as well.

I think electronic arts would be looking at someone who has a lot of online and global capability.

Steve ballmer is in charge renown.

What can we expect from that?

Quite -- right now.

What can we expect from that tax credits they do not think you should expect major changes in an -- from that?

I do not think you should expect major changes in the near term.

There will be xbox leadership down the road, it is just a matter of the timing.

There are two different business models.

What does he bring to the table and what does he not have?

What he brings to the table is a strong video game pedigree.

He was successful at the electronic arts and microsoft.

He developed great games.

He built a platform and a device.

What he lacks is mobile expertise.

Our concern is that as zynga tends to pivot toward mobile games away from social and facebook, does he have the credibility and experience to pull that off?

What is the legacy he leaves at x box?

Quakes within a decade, microsoft has is that -- within a decade, microsoft has established itself as the preeminent gaming platform.

Perhaps more importantly, microsoft has a place in the living room to compete with apple and google.

Thank you for joining us today.

Up next, the bart strike has been misery for some companies but a boom for others.

We will talk with a blue jeans company about how the strike has impacted its business, and next.

? welcome back to bloomberg west.

I am emily chang.

The clock is ticking in cairo.

Just moments ago, mohammed mercy posted on his -- morsi posted on his twitter account, insisting that he is the country's legitimate leader and will not step down.

Joining us now is the leader -- author of "the leader in a sandstorm revolution." but can you tell us about his use of different mediums, not just live television, but social media?

Obviously, the dissemination of information is quite effective.

They are using all of the media means to get information out.

He has been using facebook, twitter.

Instagram is around today and was not during the protests in egypt.

What sort of new trends are you seeing in social media as opposed to the arab spring?

Media in its totality, including television as well, has a greater significant impact on the entire middle east youth and young regeneration, which had not been given rights for many, many years.

Now they have rates using social media.

Any commentary on social media, particularly instagram ? how important is a visual medium in a crisis like this?

Obviously, as the impact is very significant at this time.

Before, people needed to hear things through neews media.

Now it is instant.

They can see the pictures.

The visual impact, the depiction is quite impeccable.

It really affects the thinking.

We have not seen an internet black out yet this time around.

Why is that?

My guess is that it is impossible now.

Before, the government used to curb those things.

It is no longer the case.

The more they bought, of the more pressure they will get.

Would you say there is the threat of a blackout or would you say that is not a tactic they are going to use?

My guess is that the tactic will not work anymore.

How do you expect this to play out?

How do you see the role of social media and the internet devolving here?

-- evolving here?

The role of social media is impeccable.

How is it going to play out?

I would speculate that the president should consider stepping down.

He is clinging to legitimacy, but i think legitimacy can only last as long as the people are in his favor.

The more people come out on the street, the legitimacy gets dissolved automatically.

Adeel shah, thank you so much.

We will continue to follow these protests in egypt.

Mohammed morrissey si using twitter for critical updates.

For the second straight day here in san francisco, a challenging commute for technology and other workers.

Bart employees remain on strike, leaving many workers scrambling to find alternate ways to get to work.

The strike is costing the area $73 million per day in lost productivity alone.

While some companies are being less productive, and others are seeing business opportunities in this strike.

Ride sharing companies are seeing business picked up.

The blue jeans network has seen business pick up as well.

I asked about the free trial they are offering.

It was an opportunity to get the word out.

Obviously, with the strike, it has inconvenienced millions of workers in the bay area.

We wanted to give those workers an opportunity to maintain their productivity from law.

We are offering a free two week trial to use the service unlimited.

All you can meet, as we like to say, to join their regular meetings from the comfort of their own home bang.

-- home.

What kind of activity are you seeing since the strike started?

It has been a boon for the business.

We have seen about a 2x spike in traffic in just the first two days from our bay area customers, and we can attribute that directly to the strike.

If it had not been a slow week to begin with because of fourth of july, that bomb might have been even greater.

We are -- bump might have been even greater.

We are looking at the billboard you put up when marisa meyer and did the work from home policy at yahoo!

That was controversial.

Who comes up with these ideas?

The biggest competition in our space is awareness.

We look for opportunities to get the word out.

Fortunately, marissa and bart have handed as those opportunities on a silver platter.

We are being realistic and opportunistic.

We're trying to give customers something they can use in their daily lives.

You guys do have competitors out there with different approaches to the same thing.

Video companies, polycom, skype, facetime.

How do you differentiate yourself?

What makes you special?

Requesting.

Each of those solutions are islands.

-- great question.

What makes us unique is that we are not trying to sell you our implants.

We are a service that lets you use sysco, polysom, skype, google or a browser and a camera.

You can have a video conference with your colleagues, customers and partners even when you cannot get to the office.

That was stu aaron, chief commercial officer for the bluejeans network.

Well, they are back, the dingell winklevoss brothers have a new venture.

We will tell you all about it.

? i am emily chang.

This is bloomberg west, streaming on bloomberg television, tablets and at bloomberg.com.

The winklevoss twins are looking to create a publicly traded fund for bic coins.

They are attempting to raise $20 million in capital.

For more, we bring in cory johnson.

Along with a currency plan, this is being met with lots of stuff.

I am joined by the coast of -host of "let's talk bic coins," a show about the future of money.

How is this seen in the community?

It is going to bring some volatility and mainstream views and perspectives, and some mainstream investors.

And $20 million at least.

Compared to the market, it is small, but at the same time, for volume, it is great.

I assume the way this works is they are going to raise $20 million and then acquire bit coins themselves.

For all of those bitcoin haters out there who think this is a joke, they can actually short the etf.

Absolutely.

It is an index fund.

Presumably, they already have the basis to capitalize this.

As an index fund, it is going to be great because they can support the bulls and the bears.

It was not clear from the filing did they were going to take the money raised and sell their own bitcoins to the atf.

Could they do that?

-- etf.

Could they do that?

They would probably have a loss if they did it that way.

It is not part of the filing.

What are the advantages to owning bitcoins as opposed to actual currency?

Are you in bitcoin?

Absolutely, and i am taxed on bitcoins as i am on the sterling or the euro.

So there is no tax advantage?

There are capital gains if you trade in it.

With in the filing for this new thing, one of the many risk factors says that until it is accepted by retailers or used in commerce more, it is purely a speculative tool and therefore subject to trading and volatility.

Within the community, is there a belief that there needs to be a push to use these in commerce more?

Absolutely, and i think his car used in commerce quite a lot.

For the average -- i think it is used in commerce quite a lot.

I cannot think of one place that uses it.

Bair non-reversible transactions at very low cost for the -- they are non- reversible transactions a very low cost for the payment.

We appreciate you talking with us.

Emily.

Thank you.

Bebo.com 's founder is buying back is social network site.

Can he find a place in a world dominated by facebook and twitter?

? you are watching bloomberg west, where we focus on technology and the future of business.

Marissa mayer makes another acquisition.

This time, yahoo!

Is buying quickie for an undisclosed price.

The team will join yahoo!

The offices of apple's french distributors were looked at after a french retailer filed a complaint accusing apple of unfair competition by withholding supporipad and iphones from french retailers.

Five years ago, michael burch sold bebo to aol.

Aol and it of shutting it down.

It was sold to a private equity firm before it was sold back to the burches.

Big news out of white hous the white house today.

Peter cook has the details.

This is a significant development regarding obama care.

There is an employer mandate.

The obama administration is delaying it for a year's time.

This is significant for any company with more than 15 employees across the country.

Any business with more than 15 employees, if they did not offer health insurance to their employees, they would face stiff fines.

They are announcing now the bad will not kick in on schedule in 2014 -- that will not kick in on schedule in 2014. businesses will have another year.

They were not ready for this change and needed more time to make the adjustment.

The obama administration is showing some flexibility, a flexibility that had been lobbied for by several members of the business community.

Why now?

Because it was about to kick in.

We're very close to the health care locking in in full.

October 1st was the start when individuals can start shopping for insurance on the exchanges.

January 1st is when the coverage would kick in.

Much of the health care law kicks in in 2014. they wanted to make the change now.

The rubber is starting to meet the road for businesses that have to comply and individuals that want to take advantage of the health care exchanges.

The reality is, if they want to make the move, they need to make it now.

They are doing this, they say, to give businesses more time to adjust.

You can imagine that people are seizing on this.

Republicans are saying this is an example of why this law should be repealed altogether.

Democrats are saying this is exactly the kind of flexibility we knew we would need with this lot.

Our chief washington correspondent peter cook, thank you for that update.

A smart watch is coming to best buy this weekend.

How will it keep up with demand?

We will talk to the company posted a ceo, next.

? welcome back to bloomberg west.

We have some breaking news out of apple.

The company just hired the former ceo of the french fashion house yves st laurent.

His title will be vice president.

Apple is still seeking a head of retail stores.

Pebble pushed into the smart watched a game last year with a massive kickstart campaign.

The watches allow users to read text messages and receive phone calls as well as watch movies from the wrist.

Can they keep up with demand?

The ceo joins me in the studio.

How did this deal come about?

It started about a year ago.

We had pebble on kick starter.

As i reached out to me.

We were still working -- best buy reached out to me.

We realized at some point we would have to cross the chasm and start marketing pebble to a wider audience.

Best buy pitched us on an idea to be on their app based accessories wall.

We thought that would be a perfect spot.

Show us the watch.

I have talked to you about it a couple of times before.

How are people using it now?

In the last month, more and more developers have started writing apps for pebble.

There are over 1100 on there now.

There are creative, high-tech, digital ones.

You can create your own watch face.

You can of load -- up load your own images.

This is one i made for your mmy mother for mother's day.

That is sweet.

And you can use it to control things around the house.

You can control your music from your watch.

You can also set vibrating alarms.

You can get e-mails calls and text messages on your watch.

Why go the retail route?

Companies like best buy are struggling to get people through the door.

We are fairly small by the standards of some other hardware companies.

We really wanted to work with a partner who could help us get the pedal to as many twists as possible.

-- pebble to as many wrists as possible.

When i said i was going to have you on the show, a lot of people were angry.

They donated to your campaign and are still waiting to get their watches.

The only what is left to ship are the white ones.

Those are going to be available in retail stores.

We have actually shipped our entire order of black watches.

Why is it taking a long time to get the white ones out?

White is tricky.

We had some issues with the injection molding on the plastic.

We also -- it was our first time manufacturing a product on this large of a scale and we wanted to make sure the quality was high before we ship it out.

Where are you making these?

We are making them in china.

What do you have to say to the people that are still waiting?

The white wines are shipping.

We just got a notification from -- white ones are shipping.

We just got notification from the factory the 6000 are shipping this week.

What other colors will people be able to buy?

Black, orange, red, gray.

White is coming out this week.

Everybody is talking about apple, google and samsung getting into the watched business.

You have said you are not worried, but we know that apple is applying for a trademark in japan.

How do you prepare for something like this?

Our goal is to lay a foundation for developers to write applications for the watch.

People are already going crazy designing apps that run on top of pebble.

Our goal is to work with the app makers themselves to get the word out.

How are we going to see pavelebble evolve?

On the software side.

Every couple of weeks we have been publishing software updates that make it better and better.

Our goal is to continue working on that and making sure that all the features our users want our there.

There is so much excitement about wearable technology.

I have to ask you about google glass.

Tim cook says he does not expect google glasses to go mainstream, but a watch is something people where every day.

What is your take?

We have been able to create a watch with a battery that lasts seven days.

It is waterproof.

It integrates easily into your life.

It is also a watch.

Which is an important feature of as marked watch.

Thank you so much the jig of a smart -- of a smart watch.

Thank you so much for joining us.

We have been highlighting startups at tech stars, and today, we are turning this by faand the spotlight on a husband and wife team.

This is a resource for new and expecting parents.

The first time i walked into a baby's r us, i literally burst into tears.

I looked up at a wall of bottles and realized how unprepared i was to be apparent.

Other parents shared what they had learned.

We wanted to take that online and make it digital.

We started in the baby business, but really, we are in the parent business.

We met working together.

For us, it was a natural experience to work together with a common goal.

We worked together on a political campaign.

The intensity and stress of that pretty well mirrors and entrepreneurial life.

That was weespring, part of this year's tech stars class.

? welcome back.

In today's new hollywood, a disney's "iron man 3" is the leader at the box office.

But until today, the rights to the first two films were owned by the rival studio, paramount pictures.

Disney announced this morning that they have done a deal for the rights to iron man 1 & 2 as well as captain america.

Remember when disney bought marshall in 2009? it was difficult for people -- marvel in 2009? it was difficult for people to understand because so many characters were tied up in other studios.

Spider-man is at sony.

Fox has the x-men, and paramount had the first iron man in release.

Disney worked out a deal with paramount to make sure they had the rights to "iron man 3." that has been very successful for them.

Then they went back in the catalog and started getting rights to movies like iron man 1 &2. this helps with images they might want to show on theme-park rides.

They do not have to go through legal hoops.

There are also lesser-known characters.

Tell us about these guys.

One of the big values of buying marvel was all the characters they could maybe introduce to a bigger number of people.

Looking way down the road, you could see ant man on the big screen.

Next year, 2014, guardians of the galaxy is one they are very focused on getting out there.

It has a group feeling like the avengers.

You are going to see some new characters too.

Jon erlichman, thank you.

Have you ever wondered what it would be like to wereork as a professional musician in the studio?

A new platform is helping make that a reality for one artist.

This is a social music platform that helps musicians share their work and discover other artists.

It also helps with a series of contests that allow artists to work with their favorite musicians.

I am schuyler gray and i am looking for a rapper to communicate with.

Enter the competition for a chance to win a trip to los angeles.

Joining us now to talk about this and announce the winner of the contest is schuyler grave.

-- gray.

Why did you decide to do this?

I had the idea to do a contest about a year ago.

One day, i was sitting next to a guy on an airplane and he already had the platform made for me to accomplish this contest.

So we teamed up and put it together.

You got big numbers too, right?

Over 200 people submitted videos, which i was really flattered that people would spend the time to do that.

I have done a lot of work with rappers, so i get hit up every day by new artists on twitter and facebook wanting to work with me.

This was the perfect opportunity to give them this chance.

I wonder, from your standpoint, can you give us the elevator pitch of how business works?

We are focused on music across the board for artists big and small.

We want artists who have not hit big to have a chance to work with their favorite artists, to perform on stage in front of thousands of people.

We have a big show on the fourth of july, the biggest show in america, called stadium of fire.

The winner of our contest will open for kelly clarkson and carly rae jeppson.

This allows fans to express themselves using lyrics from their favorite songs.

It is kind of twitter meets instagram plus music.

And karaoke.

Let me delay no longer.

Who is our winner?

Is it time to announce the winner?

As she pulls out the envelope, i will tell you, the way the voting system works, it is 3 parts.

One, the fans.

To do, the -- two, the gig vote.

3, skylar herself.

You have to get two out of 3 to win.

Open this thing.

The fans voted for enthios.

I voted for billy shakespeare , and gigg voted for billy shakespeare.

Listen to this guy.

He has some scales.

? ? he spelled shakespeare wrong.

It is his name.

He can spell it how he wants.

What did you like about him?

He showed a lot of depth.

There is something special about him and i saw it the first time i watched his video.

I am glad he made it all the way.

Good stuff.

The scott woerner, thank you for joining as.

-- scot warner, thank you for joining as.

Up next, stick around for our b-wet byte, one number that reveals a whole ligot.

? tomorrow on bloomberg surveillance, from egypt to brazil, we will talk global unrest.

That is at 6:00 a.m. eastern on bloomberg television, a 7:00 a.m. on bloomberg radio.

Time now for the b-west byte , one number that tells a whole lot.

Cory, what do we have today?

2. that is the number of bloomberg employees that played the skylar we gray contest.

Who knew?

It was a lot of fun.

We should mention that she did come to our next big thing conference.

I am sort of surprised that nobody has been a contest like the contest she just did.

Yes, that was pretty cool.

By the way, cory is a very good guitar player and emily is a very good singer.

I play the keyboard.

We should start a band.

Quakes and there is more hope for white rappers after what we've just learned.

I know korry has done some rapping on the side.

-- cory has done some rapping on the side.

Break down.

I might do it offstage.

Thank you for watching this edition of bloomberg west.

We will see you on friday.

. . .

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

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