Is CES All Hype?: B-West (1/7)

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Jan. 7 (Bloomberg) –- Full episode of “Bloomberg West.” Guests include Techonomy’s David Kirkpatrick, Clear Channel’s Bob Pittman, Center for Investigative Reporting’s Phil Bronstein and Twentieth Century Fox’s Mike Dunn. (Source: Bloomberg)

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

I am emily chang.

Our focus is on innovation, technology and the future of business.

As her old gadgets to house bash from wearable gadgets to a house that brews coffee for you, how much of this stuff will actually take off?

We sit down with some of the biggest.

Clear channel ceo will join us in just a few moments.

Long before snapshot turned down facebook multibillion-dollar takeover our, ceo turned down they walk around facebook head quarters with mark zuckerberg.

We are rounding up the first 24 hours and it has been quite an eventful 24 hours.

Seeing all kinds of gadgets.

Lg's new tv with flexible glass to new tablets from samsung and panasonic.

Big names have taken the stage, including marissa mayer.

She has made it clear that yahoo!

Is making a big content push.

Sony ceo also unveiled some new cloud-based gaming services.

It will be coming later this year.

Take a listen to his pitch.

In japanese culture, we call this emotional involvement.

The power to stimulate an emotional response.

The power to make people say wow . all sony projects must be inspired.

That was sony ceo from las vegas.

We will have much more from the consumer electronics show later this hour.

I want to talk about facebook's mark zuckerberg and evan spiegel.

We want to talk about their relation status, you might want to call them for an emmy's. spiegel tweeted a screenshot of his private e-mails with mark zuckerberg.

The e-mails were from last year.

In the e-mails, he makes clear that mark zuckerberg initiated contact.

He shied away from going -- coming up to silicon valley to meet with mark zuckerberg.

I want to bring in david kirkpatrick.

You wrote the book on facebook.

You know mark zuckerberg very well.

We spoke last week about this brashness of evan spiegel.

What do you think about this move?

This excellent story in forbes about the relationship between facebook and snap chat.

It makes it sound like spiegel is awfully confident, a little overconfident, considering the scale of the product he has built.

More confident than is merited.

A number of pieces say he should have accepted that $3 billion offer.

Nobody can tell him what he should do and he has venture capitalists that built in at a level at $2 million.

The idea that it is a kind of business that could go to 10, 20, $30 billion in value, i would be inclined to say it is ludicrous.

He seems to be a guy who is not that easy to get along with.

He is in a lawsuit with one of the cofounders.

What more can i say?

Let's talk about lawsuits.

Mark zuckerberg faced a lawsuit that went on for years and they made a movie about it.

It is hard to remember that far back how mark zuckerberg was when he was a young founder.

Do you see differences between the two of them?

Mark made a lot of mistakes, no question.

His vision was different.

The winkle bus twins were not cofounders of facebook.

They settled out of court.

It did not go on for years and they never had a very strong claim.

In this case, one of the three people who started the company was forced out.

The person who created the logo who have the original idea and you came out with the original idea -- the original name, which was peekaboo.

It is a much more substantial lawsuit.

I am not saying snapchat guys are jerks, they certainly are awfully confident considering the scale of their achievement.

They are getting all of this publicity and the latest news was that the estimates are that they have 30 or 40 active unit -- 30-40,000,000 active unit users.

What do you think he thinks about spiegel posting these private messages?

Do you think it is an eye for an eye?

Do you think he respects his commitment to snapchat?

This is the kind of thing mark zuckerberg does not think about very hard.

I am sure he considers it rude, but he has a very big business to run and he does not waste a lot of time looking back.

I doubt he has given it much thought at all.

I wrote an entire book about his company, which he never even read.

Almost everyone else around him read it carefully, but he never read it, which is actually interesting.

He does not want to think about that sort of stuff.

He did not want to spend the time on it.

He thought it was a waste of time, he is very much an engineer with an engineers mind he wants to keep going and build the next feature.

All right, it will be interesting to see where snapchat goes from here.

They started the new year off with a bang.

Thank you so much, david.

We will be right back with more of bloomberg west.

? welcome back.

I am emily chang.

I want to get straight back to las vegas.

Jon erlichman has been on the floor there all day long trying on crazy gadgets, talking to the big names.

There are so many companies with all of these different storylines.

You can talk about the content that is going on on the hardware.

I'm joined by the ceo of clear channel.

Bob, good to see you again.

When we think about -- i know you are going to have a biased radio -- answer.

Who has a best position when it comes to ces?

We are here because these are our partners.

They would not have much if there was no programming.

Whether it is the automotive companies or the tv companies, we are all playing together for the mutual good.

Let's develop this together.

If you are going to come out with something new or shiny, you better have the i heart radio logo up there.

What about the idea of this being an auto show masquerading as a tech show?

It turned into -- it used to be video games.

It was tvs.

Or headphones.

This year, it is cars, cars, everywhere.

Sitting in the car, looking at everything they are doing.

The progress they have made in a short period of time.

Get the consumer accustomed to it is great.

For us, we are ready have radio when all of the cars.

A consumer packaged goods company -- it is a great way for us to get a lot more usage.

With respect to i heart radio, you guys are saying -- seeing new partnerships with new auto manufacturers.

There are 278 million cars that have an am/fm radio.

11 million have internet.

25 million have satellite.

Very small compared.

If we can pick two percent or three percent or four percent more, that is great.

We talked to the ceo of pandora.

We have these targeted ads inside the vehicle.

How was the advertising model applied?

One more way we can reach consumers for advertisers.

If i can tell you the kind of person you are, which is really what radio formats are.

Now we are able to extend that to digital.

All of the information we have about the consumer and that is even more powerful.

We can tie directly to social.

Our company has 25 million facebook fans.

Contrast that with pandora with about 6 million were spotify with about 3 million.

We are and where they -- we are in a whole different category.

It is linked now using the online services to supercharge all of these favorite radio stations.

You spent a lot of time in the tv industry.

People love tv.

Tv is america's hobby and radio is america's companion.

Those hobbies are very important.

How we get to them is changing.

I have a 13 and a 15-year-old who view episodes.

The people who make the programming are doing real well, whether it happens to go through broadcast or netflix.

Ryan seacrest has made the headlines because he is backing a company that hasn't innovative -- backing a company that has an innovative sleeve that goes over an iphone.

He has been a terrific partner.

This unbelievable balance between business and creative.

He works harder than any human being i know.

He has these fabulous ideas.

We do a lot with ryan.

He has a brainstorm or.

Two or three hours emily, up with four or five ideas every time.

-- two or three hours with ryan, and he comes up with four or five ideas every time.

We will see later in the show.

The ceo of ford has ended speculation about whether he will be heading to microsoft.

We will tell you what he said next.

You can catch a streaming on your tablet, your phone, and bloomberg.com.

? this is a mop and a vacuum.

$499. it also has a camera on top that tells us where it is in the room.

If i have this, i probably will not walk around iran him in my underwear.

-- around my room in my underwear.

Ladies, jon erlichman to the rescue.

I want to talk a little bit about microsoft, something we have been talking about for months.

Speculation that alan mulally maybe the next ceo of microsoft.

He has ended speculation, officially telling the associated press that he will stay at fort through 2014 and he will not be going to microsoft.

I want to bring in cory johnson.

Sounds like that is it.

He has always said he is happy with his job.

If you pay attention to the details, his name has very much been in conversation as someone who could be the next ceo.

When i say in conversation, i do not mean emily chang and cory johnson.

I mean the board of directors.

They have been actively considering him as a potential successor.

It is a really important piece of information.

He is walking away from this.

Or was told he is out of the running.

Either way, it suggests a lot about the future of microsoft or suggest something about how they will compensate this person.

It is worth noting that alan mulally has over 900,000 stock on invest in a microsoft.

He would leave over 900,000 shares of ford on the table.

A company like microsoft would have to pay him for that to the tune of $15 million just to walk in the door.

Right.

It seems like microsoft has been having a lot of difficulty getting anyone to accept this job.

Maybe the problems there are just too difficult.

Taking the job, running microsoft will be incredibly difficult.

It will be a tough job for really tough person.

There are hundreds, if not thousands of people who want to take on that task.

What this really shows is that the microsoft board has started to figure out what they want is the kind of person to run the company and what they don't want is someone with limited experience in technology.

Cory johnson, thank you.

They did say they would try to get someone in place early this year.

Back to las vegas, however.

One of the big categories getting a lot of buzz, wearables.

Jon erlichman tried just about all of them.

Google glass, smart watch, we are entering a world of wearables.

There are lots of wearable devices.

Why not wear myself out?

This guy here is the wearable camera.

The sensors inside tell it if the light has changed or if i have changed my speed.

This one is -- measures heart rate variability.

$75. it knows when i am ready to work out.

If i did a heavy workout the day before, hold on a second, wait another day.

This measures fitness, measures your sleep, but it also has an emergency button.

It will alert somebody that i am in trouble.

Next up, this is for kids.

Or their parents.

This is $199. place calls to your parents or to have calls from your parents to this.

You can create this gps safe zone.

If kids go outside of the safe zone, you can send them a text message.

This is measuring things like blood flow, it even measures how sweaty i get.

This little fellow costs $50 to help get you in shape.

Talk about getting in shape, i am feeling worn out.

It seems like it is all fun stuff to try, but is it ever going to go beyond that?

Is it going to go mainstream?

People are very passionate about this stuff.

You are not really at the all in one stage yet.

I am sure you will have much more for us later in the show.

We will be right back.

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

Twitter says it will release its first quarterly earnings report as a public company on february 5. it will take questions submitted via twitter during the earnings call.

Shares fell seven percent today.

Sony says it sold 4.2 million playstation's giving it the early lead over microsoft.

Microsoft says it sold were than 3 million xbox 1's. sony and microsoft may soon get some new business in china.

The country has lifted its ban on selling foreign videogame consoles.

To another story we are following today, this was an unforgettable photo for a lot of us in san francisco.

Road testers surrounding of us of google -- protesters surrounding a bus of google live ploy ease.

-- google employees.

Companies like apple, google, facebook have buses that shuttle employees to and from san francisco.

They have become a pretty controversial symbol of income inequality in san francisco and now the city has reached an agreement with the tech companies and with the shuttle companies.

They have to pay to stop on the streets of san francisco.

What do you think of this?

Should they have to pay?

This thing hashed this issue has been going on of income disparity probably sense the 49er days when the madness of gold and silver were building these mansions amidst poverty.

I remember back as a reporter in the 1970s when jennifer -- when gentrification became a word.

This has been happening and happening.

It is not just san francisco.

It is repeated in cities around the world.

I was a foreign respondent for many years.

Of late, the tech industry has boomed in san francisco.

Companies take out huge corporate office spaces and they are revitalizing certain neighborhoods.

At the same time, they are driving up real estate prices.

The pissed factor is not quite high enough.

No one has been guillotined in 150 years.

You have this war were they are bumping chests against each other when nothing is happening.

The charging of the shuttle companies will pass it on to the tech companies.

It is a dollar a day per stop.

We have not been able to figure out how much.

They are not allowed.

Of course, you cannot make a profit.

The cost is estimated at $1.5 million.

If you do the math, it is more like 8 million.

The problem with this is that there were a couple of quotes, the president of the board of supervisors said, we have seen wild wild west in our streets.

Have you ever been to manhattan?

You are calling out new york city.

There will be a bus.

I am not predicting anything.

You think -- it goes up and down.

There is a push off people -- there is a push of people out of san francisco.

Hunters point, i remember when willie brown first ran for mayor . he had never been to hunters point.

There are places that are still struggling where people can still find places to live.

It is not just the lowest income -- the people in the lowest income bracket that are complaining.

Middle-class people trying to find an apartment in san francisco cannot find one.

It is so expensive.

The housing around the bus stops is especially inflated.

There is no question about it.

Where i used to work at the chronicle, there was a corner bar and there were literally cockroaches at the table.

Now there are bluebottle coffee shops where a coffee is 28, 29, $30. it is a change of culture.

It is a conflict of culture.

What about this sudden wealth?

It is a phenomena in that i do not believe -- end of year bonuses for 2013 were pretty good.

There was a trickle-down effect to artisans and others who sell goods and services to these people.

There is a question as to whether there is a trickle-down effect.

In the 1970s and 1980s, japan airlines would sell japanese tourists and give them a credit card.

They would not spend a single dime that would stay in san francisco.

It is a silly symbol, the bus.

I spoke to the mayor about this last year.

There seems to be this divide between techie community and everybody else, whether there are poor people or not.

The industry can be closed.

We live inside our own bubble.

Do you think it is creating a different class of citizen?

I asked that question of the mayor.

He did not think so.

Of course not.

The language alone, they speak a different language.

I do not understand it.

There is this cultural bubble.

Does it benefit others san franciscans?

You may be irritated or pissed off if you see the's fancy buses pulling into your muni stop.

You may be benefiting from the fact that these people live in san francisco.

It is not an entirely closed society.

What you may be war -- you should be more worried about, when you get on a website to complain about it, whoever owns that website have data on you they are using to get wealthy.

The collection of individual data, people ought to be more worried about that.

Always great to have your perspective.

We will see how this one involves.

-- eve allis.

We will go back to las vegas and to the consumer electronic show right out of this break.

Jon erlichman has this look at one of the gadgets on display.

This is from an intel partner.

You get this insert which can monitor all of the baby related stuff that is happening when your baby is sleeping.

What is happening with the breathing.

$199. ? welcome back.

I am emily chang.

Dvd, blu-ray's, apple tv, netflix, the list goes on.

There are so many ways to watch your favorite movies and tv shows.

Are there too many options?

Jon erlichman back with us from ces.

You know about all of the options.

What do you think?

I think it is really important when there are new technologies that come out that the stuff that you will watch on television moves as quickly.

He is the president of 20th century fox home entertainment.

Welcome back to the show.

This is a big deal.

We have seen these massive tvs.

The process of actually getting good quality film, getting the studios up and ready for whenever the behemoth of a television is going to be, that is not an easy process.

For the consumer electronic show, it it is all about 4k. for those who do not know -- four times the number of pixels on your tv.

The sound quality is four times better.

It really shows the larger the television.

If you have a 60 inch television and above, the 4k television is a clear difference.

It is one thing for the television to be that much more amazing, but the studios making television shows and films have to give you something cool to watch.

The consumer-electronics companies will introduce the television, but there are no blades for that razor.

You have to build the pipeline back so the production process for a movie can support 4k development.

If you have a movie with a lot of special effects, the process is not there today.

It would cost $20 million for those special effects so they would be 4k quality.

It takes a minute for the content companies to put that into development.

These movies were brain lit three years ago.

-- greenlit three years ago.

What does the research tell you on when somebody buys the new fancy television, are they more likely to buy a digital version of the movie?

Today's consumer is a lot different than a consumer five years ago.

The early consumer bought a device and the device was really not connected.

Today's device requires content.

It is an internet of things.

The content on the device have to marry up.

Consumers are device centric and they are content centric.

We just wrapped up a big year for this -- the number of downloads of digital properties -- digital films was a big time over the course of the year.

This year was a great start.

It is up 50% versus the year prior.

A couple of things driving that.

We got our consumer proposition right.

Most of our films are under $15. they are very early, before dvd and blu-ray.

You have to be able to take this stuff anywhere.

If you are buying a movie and you have apple tv, you do not want to buy some new tv and not be able to take -- what you see right now is the living room is getting bigger and more high deaef.

Walmart sells 90 inch tvs now online.

There are 18 million devices connected to the internet on christmas day.

You have this proliferation in the living room and mobile.

We have 30 seconds left.

Sony announced it is testing an internet tv service.

You have to think ahead of time where to place your energy in terms of platforms to be focused on.

How tough is that?

If you look at it from a deal perspective, you put ships everywhere.

If you look at it from a consumer benefit, it it is easy where he -- it is easy to see where you put the benefits.

Mike, thank you for your time.

Thank you.

Everyone from tech titans to small startups are trying to make your home smarter.

We will take you -- we will show you the house that bruise your coffee for you, next.

-- brews your coffee for you, next.

? some users of the next high- tech thermostat say it is not working properly.

One user tweeted, two degrees outside and had to put the next into emergency heat mode.

In a statement, next said the issues affected a small percentage of users them are not related to a recent software glitch.

It is one product found in a connected home.

What about things like coffee makers?

Washing machines?

Lg and samsung are trying to make your home more connected and smarter.

Startups, to.

Stamm sets -- startups, too.

This does not really look like the home of the future, does it?

It has been outfitted with some of the latest home automation technologies.

I am going to go inside and talk to a guy who founded a company that is bringing the home of tomorrow to us today.

What exactly is smart things provided?

It makes it simple and accessible.

I can lock and unlock doors over the internet.

I could do this from new york city?

It is something anybody can do.

We are an open platform.

It is opening up the possibilities.

Here is how it works.

You have smart things in your house and you push a button on this wristband.

It will start a bunch of systems in your house.

The beauty is how simple we have made it.

It is the house knowing what is happening.

When i opened his cabinet, a motion detector will start playing the news.

That is what i am talking about.

I will start playing the local news now.

What are some of the other ways the system can be used?

The system can detect when you leave.

This can become a security system.

If there was a motion on the front porch, it could play a prohibitive sound for a potential burglar.

[dog barking] a lot of companies here at ces, what are you expecting to see this year in las vegas?

This is the year where this goes mainstream.

It has become easy enough and inexpensive enough for anyone.

All right.

I see how that can be pretty cool am a but i see how that can be out of hand.

It is time now for the bwest byte.

Cory johnson is in new york.

Your garbage disposal just called and is very upset.

I am not a wood chipper.

Ird have too many people to deal with.

$914. that is the closing price, the last closing price of the bitcoin today.

I'm interesting lawsuit filed by -- an interesting lawsuit filed by kanye west, a cease-and- desist order filed by coinye west.

Interesting.

Some big coin technology on display.

Thank you so much.

We will have more from you tomorrow.

?

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

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