Buzzfeed Eyes Expansion: Bloomberg West (08/11)

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Aug. 11 (Bloomberg) –- Full episode of “Bloomberg West.” Guests: True Ventures Partner Om Malik, Bloomberg Contributing Editor Paul Kedrosky, Emory U. Hospital's Alex Isakov, Magid Advisors President Mike Vorhaus, Woods Hole Oceanographic Institution's Roger Stokey and EMC Syncplicity's Jeetu Patel. (Source: Bloomberg)

Live from pier three in san francisco, welcome to bloomberg west, lori -- where we cover business, technology and the future of business.

Had this hour, buzz feed is building serious was for itself stop the website famous for its list and viral content just raise $50 million from andreessen horowitz will stop they will be using the money to build its movie studio and expand overseas.

Amazon takes aim at disney, rocking -- locking pre-orders of dvds like the new "captain america" movie.

They've also been in pricing battles with warner bros.. disney is directing customers to walmart and best buy.

And it is shark week -- what are the most critical weeks of the year for the discovery channel.

This year, and underwater drone got involved, equipped with five grow -- 50 pro cameras designed to swim with the sharks and castor their every move.

First, buzz feed, the website popular for list and general news gets a major round of funding to help it grow.

In true buzz feed style, here are the top five things you need to know -- buzz feed is getting $50 million in series e running from andreessen horowitz i'll stop second, buzz feed's bally laois and is a reported 850 million dollars.

It has raised over $96 million in funding.

They will convert to buzz feed motion pictures which will produce short clips and full-length movies and let them expand internationally to india, germany, japan and five, they are among the top 10 most visited news and information sites with an average 150 million monthly viewers compared to $31 million -- 31 million viewers for the "new york times" website.

Joining me is a bloomberg contributing editor from san diego.

Buzz feed is same as for the list.

Can it become a giant media company as well?

I think it is a giant media company.

It's just not the kind of media company you and i might most like.

I was listening to your list of the top five things we should know about the buzz feed he'll.

The only thing was a bullet that ended with cap.

That's a joke -- the attraction is a kind of hack our attention and the ability to its stuff in front of people, find out what is appealing and turn it into a list and generate traffic.

That is a business.

Whether it means if anything bigger than what it looks like, it's just really hard to see right now.

Lots of companies look like toys in their early growth days and that's kind of the picture.

Taking it to something much more profitable is difficult to see.

I struggle to figure out how that works from here.

All of these tech titans are investing in new media.

There's a media site he promises will be different than anything ever seen before and mark andreessen has been particularly alleged on new media and journalism.

He recently tweeted i'm more optimistic/glitch about the future of news over the next 20 years that almost anyone i know.

It will grow 10 times to 100 times.

Do you agree with that?

I think media -- and we are a living example, we are going through a wrenching transformation.

I think it's going to get much larger but is not going to look anything like what it currently looks like all stop in so far as we are asking whether buzz feed is the next "new york times" or bloomberg, the answer is no.

We are creating an entirely different warm up the edits not going to look anything like now.

One of the pitches they made in making this deal was that it exemplifies this.

Investing model that chris dixon and others have, the notion this whole industry needs to be reengineered from top to bottom and the old suppliers are not going to be there anymore.

So the notion it's going to turn into something we are familiar with this completely wrong and that will make some people resort to despair.

Winning me in the studio is the founder of gigaom.

You lived inside as an insider at gawker and a huffington post.

Can these companies the profitable?

Absolutely.

If you look at buzz feed, they are often able according to the "new york times" article.

But i think all is onto something here.

You have to stop looking at these companies as news companies and more as attention companies.

If you have the attention, you have the business.

If you have the attention, advertisers want to go there.

You can sell people other things, music, movies and whatever.

I think buzz feed is in a good position to capture that big part of the media market because some of the older guys are just doing it.

They've done it good job at going through a more nimble, social oriented media company.

They're not all the same company.

I think what my company does is different from what buzz feed is and we are essentially doing generally the same business but not the same industry.

Rather than can they be profitable, how profitable can they be?

You and i have talked about the value of clicks, but one kind of click is more valuable than another.

One kind of user is more valuable than another.

75% of buzz feed traffic comes from social media.

Is that dangerous?

Are they overly reliant on social media?

Absolutely.

That's a risk every media company runs both top -- every kind of media company runs.

I think buzz feed has that risk, but there are many more large lot forms today.

You interest and so on -- you have pinterest, tumbler and so forth all stop -- and so forth.

On the profits point, that's the weakest criticism we can make.

Their costs are and will compared to a traditional media organization.

They are not sending people around the world establishing buzz the bureaus with the latest in taiwanese list.

You don't need to do that will stop their costs are much lower than traditional media companies, so if anything, it could be intensely profitable.

The biggest risk is that the algorithms change and their traffic shrinks dramatically.

That is what they have to engineer against.

They are not establishing bureaus in taiwan to make this, but i was looking closely at the reporting in the ukraine when the malaysian plane went down.

They're working more on longform print journalism.

Are they giving companies like "the new york times" a run for their money?

I think they're being different.

They are looking at a new model for a whole new generation of viewers or whatever.

We have this holier than thou notion of news and at the end of the day, what does the has done is turn that into a light entertainment package.

They send somebody to ukraine to do a serious story but there is value in that.

The reality is the majority of the business is going to come from being entertainment-oriented.

What about major motion pictures?

What do you think of was feed doing full-length feature films?

I don't like it, but mark is much smarter than i am.

Maybe they have endured something out here.

The graveyard of roque and media companies and broken investment is longer than demand.

Look at the inventions with elevation partners.

There are many different attempts to build around entertainment and around content roberts and reticular movies will stop it difficult to see how that is a profitable venture on top of something with pretty interesting economics on its own.

I understand the movie industry is rogan and tv is being up on it in many ways, but that doesn't turn it into a justification for being a movie investment vehicle.

But is video -- it seemed like nobody has been able to crack the real value of audio.

The difficult to organize.

You can't just click on it quickly.

Is there something to be said for putting a lot of investment there?

Youtube has done good -- has done a good job at making money off of video and so has netflix will stop either do the sharp content the way youtube does.

The netflix model where you aggregate -- nobody wants to watch a two-hour movie but you can watch two or three episodes of elevation series in a row.

That is where the opportunity is.

I have heard the decentralized company will try to do something similar.

It's an interesting time.

The challenge is to not get ambitious.

Do a better, smarter and faster.

That will be a good balance for them to find, so let's see how that goes.

I don't think this is such a bad investment for him and recent horowitz.

Thank you very much.

Stick with us.

Coming up, we will talk about amazon locking pre-orders of disney's summer hit movie "captain america, the winter soldier." we will tell you why it's part of amazon's negotiation tactic we return.

? i'm emily chang and this is bloomberg west.

Amazon is taking on disney in its quest to gain more control over pricing.

The e-commerce giant has blocked pre-orders of "captain america -- the winter soldier." amazon has used this tactic with publishers and film studio warner bros.

Will stop so which side will come out on top question mark -- will come out on top?

These disputes with amazon are now very familiar.

A familiar playbook they are using.

What is your take on amazon throwing its weight around yet again?

I would love to believe it's for the consumers but i don't will stop we know what the consumers want.

They want to get their content when they wanted, it used to be a cliche and now it's a truism.

It has to be part of their continued effort to claw their way to some form of robin ability.

What about you, paul?

We are seeing this again and again from amazon.

This has shed -- this hachette dispute has been going on for months now.

You have someone with a law cold on the distribution, which is amazon and you have a relatively small number -- a large number of content reducers going through various publishing houses.

They focus through those pointed each of those joke points create people who think they have a lot of power in terms of his tribute in and you get this classic game theory problem where everyone feels like they have an awfully power and can lock the other side out, so they stay out for a long time.

It going to be interesting to watch -- my take is this is going to cause a push toward more digital distribution from disney and others as they say i don't want someone standing between me and my consumers.

In this case, it's amazon making the move will stop however, disney is known for pulling its own content.

I tried to be -- i tried to buy "the lion king" the other day.

I would have paid $25 for it but it's not on amazon, it's not on my cable on demand.

From the point of view of l.a. in the people making this content, who has the power?

Disney has always practiced a gimmick inventory.

There are certain titles not available at certain times.

But fundamentally they are proconsumer.

We tend to say content is king.

I think there are a lot of distribution avenues.

I looked up some block disney dvd today's and had no problem finding them on google.

They've both got a little power.

Digital streaming is going to go up but it's hard for me to see how amazon comes out looking like the good guy on this one.

Does amazon win anyway?

Who's going to be the victor here when it comes down to it?

In the short run, amazon is likely to extract some concessions.

There's the potential for consumers to get lower prices.

In the longer run, the winner is going to be consumers who are able to get product through different channels and don't have to rely on places like amazon because it's going to speed up the process by which everything comes over the top and around and avoids these lock points.

In the short run, it's going to drive things like tour ending -- like torrenting.

Amazon is saying you can't buy it here but you can buy it at best buy.

They are directing people to their competitors.

I don't understand.

What's the point?

There's not one.

It's purely punitive.

It sounds like a lot of manipulation.

Sounds like some testing and agile analytics on steroids.

I'm curious to hear your thoughts on the hachette dispute -- literally calling on authors to contact the publisher, publishing his e-mails will stop you have authors as famous as malcolm gladwell and stephen king signing an anti-amazon petition.

It's so funny because we have talked to authors on both sides of this dispute and the bottom line is amazon says e-books should be cheaper and publishers are driving prices up.

You have authors loyal to publishers and some on the other who want to sell books.

There is the tension.

It breaks down at the idea of even publishers advances.

Most publishers don't earn back the advance they give up to authors.

The economics of the book publishing industry have been published for so long.

This represents a rearguard attempt to approach those and one way or another, it's going to break down.

They have to break down because consumers wanted to break down.

They don't see the rationale for having e-books be the same price as print books, even if it's not just about the cost of production.

That doesn't wash when you are a consumer.

It's going to be very difficult on this one to hold back the tide.

Thank you both for weighing in.

We will continue to watch how this one plays out.

It is that time of year again -- shark week kicks off on the discovery channel and we go behind-the-scenes with one of the creators of the shark cam next.

? that's a look at some other stories making headlines right now.

You can always get the latest headlines at bloomberg.com and on your mobile device.

Snapchat's fund raising talks with alibaba are over according to people familiar with the matter.

The mobile app known for his is appearing messages wasn't talk with alibaba for a financing round that would value snapchat at $10 billion.

People with knowledge of the situation said alibaba has left the door open to resume the conversation after it holds its initial public offering.

Snapchat is preparing to raise cash, authorizing 17.4 million shares of new preferred stock earlier this month will stop -- this month.

For many tech companies, the dress code is black.

Call it the zuckerberg look -- t-shirt, jeans and sneakers.

That leave it to ryan seacrest is adding designer to his resume.

The radio and television producer is trying to dress up millenials going into tech and make a good first impression and build their brand.

Seacrest is launching a new clothing line called ryan seacrest distinction.

He sat down with bloomberg to talk about how one's outfit can make an all-important first impression.

You want to get right out of the gate will stop these suits are about first impressions.

You talk about millenials and getting their first suit and going after their first meeting for a job.

That's about a first impression.

This launches about a first impression.

The seacrest line launches in september at macy's. nigeria has confirmed ebola has spread to africa's most populous nation.

Up next, we're speaking to one of the doctors treating the americans who contracted the virus about how technology is helping the recovery and helping to keep others safe will stop -- keep others safe.

Time now for bloomberg television on the markets.

Let's take a look at where are traded today -- we saw the first back-to-back gains for u.s. stocks on the s&p 500 two weeks even though the gains were not huge.

But optimism tensions are easing between russia and ukraine's and strikes push back militant in iraq helping stop that helping stocks out.

? you are watching "bloomberg west." i am emily chang.

The outbreak of the bowl in west africa is the worst ever with the world health organization confirming that more than 900 people have been killed by the virus.

The vast majority of cases are in sierra liaison, guinea, and liberia, the virus is now spread to nigeria.

The health minister there says there are 10 confirmed cases in his country, africa's most populous.

Dr.

kent brantley, one of the two american aid workers being treated at emory university hospital said he is going -- is growing stronger every day.

One doctor was on the team that transported these two americans to emory and joins me now from atlanta.

Thank you so much for joining us.

I know you are very busy right now with very important things to do.

You cannot comment on the status of these patients because of privacy rules but i want to ask you in general -- talk to me about the operation at emory hospital.

This is one of the most state-of-the-art hospitals in the country.

What kind of protections and technologies are in place to make sure that this disease does not spread?

Thanks again for the invitation.

In the entire transport of the patients from liberia back to the atlanta metro area and to the emory university of hospital isolation unit, the primary mission is to take appear the patient and provide the support of care while protecting the health care workers and understand get exposed.

Much of the technology that is applied in both the transport element and in the hospital is the same.

The goal is to not he come in contact with some of the infectious bodily fluid.

Typically that requires is to try and provide the health care worker the appropriate protections.

You have seen this on the videos.

They are typically wearing a water impervious suit that pretty much covers them from head to toe.

Then you also see these workers wearing what's called a hodded purifying respirator.

I want to stress this -- the centers for disease control publishes the guidelines that we are well aware of to help prevent the transmission of this illness.

They require all three, standard , contact, and drop-off percussions.

No help worker in and what else can get in contact with any infectious bodily fluids.

Some of what you see on television around the powered air purifying mechanism in the hood, they are more practical because it keeps the provider covered head to toe and keeps the provider cool because that powered respirator is low in cool air over their face.

Some of what you see on television is a result of practical considerations, the cdc guidance that stresses standard, contact and drop-off percussions.

That is strictly required to prevent transmission of the illness.

It has been quite controversial whether these american should have been brought back to the united states and the kind of drugs they are being given.

Now that they are here, how confident are you that you can keep the disease contained and not of the people working with these patients will contract the disease?

Are you 100% confident?

My confidence is absolute that the health care workers that have come in contact with these two patients are safe and they did not get exposed to any infectious bodily fluids and i'm also very familiar with all of the procedures to ensure that no one and the health care setting or outside the health care setting could get exposed to any infectious bodily fluids.

My confidence on this issue is that it is 100% safe.

One of the nurses from emory hospital wrote an op-ed in "washington post" that got some backlash but her point was that we want these patients to come here and we want to learn from them.

What have you learned so far?

Susan grant to is the chief nursing officer for emory health care is the one who wrote that article.

I thought it was very well written.

What reminds us is that while there is a lot of discussion about policies and procedures in different technology being applied, the real story is about two american humanitarian aid workers who got ill with a horrible disease and are looking for their best opportunity for a full recovery.

I think that emory university hospital and the staff and others working together to make this happen is going to provide these two americans their best opportunity for a full recovery.

As an academic health center, that is something we are committed to every day.

These two patients as well.

As i understand, emory hospital is actually prepared to handle diseases that are much more serious and much more contagious than ebola.

Can you explain the capabilities of the facility and what kinds of diseases are we talking about?

This particular isolation unit was developed with novel emerging infections in mind -- in other words, you have all heard about novel influence of viruses like h1n1 in 2009 which did not make people that set.

H5n11 makes people very sick and other novel influenza viruses we have not considered.

As they emerge, the scientists and the epidemiologists don't know that much about these novel emerging infections when they first come out.

We are not so sure how sick it will make people and we are not sure about all of the modes of transmission or what the range of the modes of transmission and him are.

And isolation unit like the one here is specifically designed to accommodate those individuals that might get sick with a novel infection where not everything about that infection is well-known that all the containment procedures are in place so that all the health care workers and anyone around that unit are completely isolated from that individual.

That is what this isolation unit does.

It separates other patients from that university -- from other university patients and those patients would be isolated.

At you are right, the means by which ebola virus is transmitted is well understood and mostly contact and drop-off percussions but other infectious diseases like sars require additional protections meaning that illness and him and him can be transmitted from person to person by airborne means or by aerosol.

This unit would be capable of doing that as well.

I will say that many hospitals, maybe all hospitals in the united states, have a capability to manage a patient that requires aerosol precautions but in the case of illnesses that are novel and new and not every mode of transmission is well understood, that capability has to be executed with extreme caution and a meticulous oppression of the health care workers in the isolation unit are educated and trained to do -- to exercise those percussions up through airborne and aerosol transmission with meticulous care for their own safety and the safety of those around and in a way they can provide the best care to the patient and hope we can get a full recovery from that patient.

One last question about the experimental drug that has not been approved -- i asked you but your confidence level in the facility but how confident are you that this drug is indeed the right drug and you are not going to be seeing negative side effects that people are concerned about.

Out of respect for the patient's family, we're not talking about any specific treatments the patients are receiving.

That makes it difficult for me to comment about any specific intervention.

The good news is that the vast majority of care provided to patients suffering from ebola virus disease is in that category of supportive care meaning supporting their breathing, supporting their blood circulation and supporting their kidneys ability to function and other vital organs.

That kind of care would be provided at any capable health institution in the united states with the resources they have.

Specific interventions on experiment will treatments, out of respect for the privacy of the family, we are not talking about that so much.

More information about those experimental interventions can be found for example on the cdc website.

There has been so much interest in that.

There is good information on the cdc website now that the entire top elation can access to learn more about that.

Thank you so much for being with us.

You are helping to care for these two american patients who contracted ebola and are now being treated in the united states.

What happens when you throw an 80 pound autonomous vessel covered in go pro cameras off the gulf of mexico?

We will cover sure quick next on "bloomberg west." ? welcome back.

Now in its 27th year, shark week has kicked up on the discovery channel and this year, discovery will feature footage captured by the oceanographic institutions remus shark cam at 9 p.m. eastern.

This specially designed autonomous underwater vehicle or auv equipped with six go pros was dropped off the gulf of mexico to capture sharks.

Look at what happened.

Wow, it almost doesn't look real.

The senior engineer was part of the team that developed this shark cam and joins me now via skype.

That is pretty incredible.

Are you surprised at what you captured on this thing?

We were absolutely stunned.

We were following another shark and the shark, the one you just saw, attacked the vehicle.

We had no idea this was going to happen.

We have been teased that all the sharks will go after it.

He said that publicly but he said they will live alone and he did not expect it and we did not expect it.

Then we saw this.

Is that the craziest thing that happened?

How many more moments like this were there?

I think in all, the vehicle was attacked about 10 different times.

We've got a number of them an excellent camera footage such as what you saw but also shots of the vehicle being attacked -- you see the chart -- the shark coming up in the depths.

You got great close-ups.

Also we got other footage of different behaviors where the vehicle indicated territorial behavior.

How did you build this thing and how did you direct this thing inhabited nowhere to go?

The oceanographic systems lab has been working on this vehicle for 20 years now.

It is autonomous or you can give a set of instructions and it follows them.

Essentially, we tagged the shark and that puts a transponder on it.

We ping the transponder and get a response and the round-trip travel time gives us the range and using an acoustic estimate, we can determine the bearings to catch up to the shark.

I am completely stunned.

We are watching footage of these sharks stalking the camera.

How did the drone return?

Wasn't alive in one piece?

We went through three stages with this thing -- when it was the initial journey, we saw anomalies and the data, things that did not look right.

We asked the captain how deep the water was.

We figured maybe it was running into the bottom and we found out it was hundreds of meters deep.

Then we recovered the vehicle and was astounded to see clear jaw marks, teeth marks in the stern of the vehicle.

The third time when we got to view the footage, they filled as of viewing the footage for the first time and we are all just absolutely shocked.

We jumped out of our seats.

You have been using these vehicles in other situations.

What else is the strong capable of?

This vehicle is part of a family of vehicles.

This is a remus 100 rated for 100 meters down but there is a 600 which is a little bigger and eight remus 6000 which is rated for four miles depth in the ocean.

That vehicle is the one that was used to find in air france 447 when it crashed off of brazil.

We have done a lot of different tasks and jobs with us.

How about the missing malaysian jetliner that still has not been found?

They believe it is at the bottom of the indian ocean?

I think they'd decided to use a tone system but once they find the wreckage, we may be involved.

What about the footage?

I am impressed by what these g opro cameras captured.

This is being integrated into the discovery channel and shark week but what about movies and motion pictures?

It's him press of what that technology has done.

They are fairly low-cost and i give superb video.

There is a lot of shots in the tv show of a drone mounted helicopter of aerial views and we have terrific footage.

It is simply a small drone that is maybe two feet in diameter.

It's amazing stuff.

We will be watching tonight at 9 p.m. eastern on the discovery channel to see your footage.

Thank you so much for joining us and sharing your story.

The competition is fierce when it comes to filesharing and a longtime tech giant is making serious inroads against startups.

We hear the secret behind emt's success next.

? as competition heats up in the cloud, filesharing leaders are emerging.

Emc is giving dropbox stiff competition.

Cory johnson spoke with the simplicity general manager about what they are doing.

Productivity is a big problem.

Users -- if you think about what is happening in the enterprise, looking to provide secure systems but the secure systems don't have a good user experience and one of the most insecure things you can do is give a secure system a bad user experience.

Then users will go to other tools.

That puts intellectual property at risk.

I look at the news that apple is doing a content delivery network as evidence they may be thinking about this exact kind of service and thinking about ways that icloud could offer a solution like yours.

The nice part of those vendors like apple is we treat every platform as a first-class citizen like android or ios or windows.

Apple does not do that.

We are focused on the enterprise needs.

In time, you will see these markets develop capabilities that will be very different.

We might have capabilities very focused on the individual while they are at work rather than at home.

In the 3.5 years i have been doing the show, i don't think we have had this -- ever said the word magic quadrant.

The magic quadrant that you score highly on is so important for i.t. decision-makers.

On the one scale, it shows the breadth of your ideas and the other scale shows your ability to do that stuff.

You guys scored high on all of that.

What does that mean for you in the marketplace?

Fundamentally, this is a mass-market plight prayed we believe there'll be hundreds of mines of users that will start using this.

Cio's look at the magic quadrant as an indicator of who they will go with.

You could have scaled back your offering but you have not.

Why not?

How do you decide to go after somebody things at once?

We feel we are just a started so there is a tremendous potential for going out and making users productive.

One thing that is offensive to us is how that enterprise software is for the user.

We want to make sure when we make a delightful user that is secure for the enterprise and that combination is a rare combination that no one does well.

Give me a software spirit that is delightful.

The 32nd rule -- and most mobile applications, you typically have the user and gives you 30 seconds.

If in the 30 seconds, you don't emotionally connect with the user, they will not use your software anymore.

It's that fast.

We have set 32nd spot be too much for it let's go with the first swipe.

The first time you swipe on the application, you should fall in love with it.

Our tagline is " love at first swipe." there is a suggestion that you have the breadth of offering come you don't have a lot of users.

Competitors like dropbox have more.

They have a lot of consumer users but if you think about the enterprise, it's different serving 20 or 30 million consumers that it is serving large enterprises.

We've got 150,000 seat customers.

Our goal is to go out and focus on the enterprise market making sure you can address those needs rather than going into sharing apps for consumers.

What is next?

When you score this grade rating, does it help you march into plants that were not able to buy before and it changes their mind?

We have seen that a lot where customers have been dissatisfied with some of the competitor offerings and have come back to us.

They have seen the magic quadrant and we see this as a mass-market plight.

Over the next three or four years, i think it will be -- there will be four or five major players in this market.

It will be us, google, microsoft, and from a small company perspective, dropbox.

It will be a race for these five and who will go up when.

We have been following this to ipo and will continue to do that.

Thank you so much for watching this edition of "bloomberg west." you can get the latest headlines on on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire.

And we are on-demand as well.

We are everywhere.

Thanks so much.

? . .

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

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