Protecting User Privacy: Bloomberg West (05/02)

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May 2 (Bloomberg) -- Full episode of "Bloomberg West." Guests: Chegg CEO Daniel Rosensweig, Conde Nast Entertainment President Dawn Ostroff, Wealthfront CEO Adam Nash, IfOnly CEO Trevor Traina and Academy Award-winning actress Marlee Matlin. (Source: Bloomberg)

Live from pier 3 in san francisco, welcome to "bloomberg west" where we cover innovation, technology, and the future of business.

I am emily chang.

Protecting user privacy when it comes to data.

A number of changes.

How it could impact the business of technology.

How do you transition from selling designer handbags to selling iphones and ipads?

Eric is finding this out.

First, a check of your top headlines.

Facebook has promoted chris to top officer.

He is the vp of product joined in 2000 five and helped develop the news feed.

Facebook said he has been instrumental and will continue to do the same as cpl.

Google makes an acquisition.

Google is buying london-based -- a company founded by a former executive.

Rangespan better predicts customer's demand.

Terms were not disclosed.

Steve ballmer is microsoft's largest individual shareholder after bill gates sold.

He has -- ballmer has about 300 million shares.

This is after balmer stepped down as ceo in february.

Bill gates stepped down the same day.

To our lead story.

In washington, the president of big data proposal and changes that could have a huge impact on technology companies.

The changes range from how companies report cap -- hack attacks.

President obama requested a report in january after the own programs were released.

Our washington correspondent megan hughes joins us with more.

Walk through the report with us and the major highlights.

Interesting, the president just wrapped up speaking about this privacy issue in the rose garden in a news conference with the german chancellor saying we tried to reform what we do.

After this report is part of it.

It is focusing on the private sector, not only the nsa.

What is interesting about this report is it does make some concrete recommendations.

It is not just a review of big data.

Let's take a look because they could have big implications.

Number one is advancing the consumer privacy bill of rights.

Standards on how your personal information is used.

Another one is a data breach legislation that would provide for a single standard.

Right now is a patch work in different states.

It is something that target has backed.

And sending privacy protections to non-us citizens.

That is something the president has mentioned.

Making sure data is collected in the schools only for educational purposes so it is not used inappropriately.

And developing better technical expertise within the government.

How they hire.

Also supporting laws to make sure people's e-mails have the same recommendations as a warrantless -- it is something people have been pushing for.

What is the industry saying about privacy?

There's a lot in here for our privacy advocates to cheer.

There have been concerns expressed.

We have her advocates saying where is the timeline?

How will he get through congress?

Three of them would need congressional action or approval and that is not part of the report.

There's also some concerns from the industry standpoint that some of these would not be necessary and will be stifling to innovation.

We are hearing chris's from both the size.

Megan hughes from washington.

-- we are hearing criticism from both sides.

-- how will it impact companies?

Chegg is a services company.

Thank you.

Great to have you.

What did you make of this report and how do you guys handle all of the data you collect?

There's a lot to cheer.

On the part of cheering, we want to greater transparency.

Greater consistency.

Especially around data bridges, what he -- data breaches, we are all part of the same situation.

With can benefit from standards of transparency and how we handled things, how they get reported and how people communicate.

All of those are good.

Those are concerns if you go too far.

The internet is about personalization and understanding more about the needs and making things more relevant.

If you block that capability, then a lot of the products and services that people love will not be nearly as good.

I have been a big fan of opt in.

We ask permission to do things and we make it crystal clear what we want to do with the information and if we want to do anything at all.

We do not sell the information and we protect it because our whole brand is based on how well we treat our customers.

It was interesting this week to see somebody like mark zuckerberg who is about collecting as much information as possible.

Facebook gets the information but users can feel a little bit better about how much they share with third party apps.

Dd the industry is handle -- going toward a reset?

That is a very different situation.

Markets always been about transparency.

This is a direct result.

-- mark has always been about transparency.

People unwilling to download the apps, not facebook apps.

You do not want your information to be shared with everybody's websites.

You may or may not want people to see you are listening to music or what you are listening to.

Being able to log in anonymously protects you.

The real motivation is to get people to use more apts and not protect privacy.

I want to talk about your earnings.

Revenue is up 22%. digital is up 66%. do you see digital becoming the majority of your business one day?

We put up our 50/50 plan.

We weep -- we believe will hire relationships with over 50% of all high school seniors and college students and 50% of our revenue will be from digital.

For the first time, we broke out our digital, not just revenue.

We already believe will be over 60 per 5 -- 65% gross margin.

We did it because we like to increase transparency.

Additional has become 25% of our business and we are predicting by the end of the year it will be 35%. by 2016, we think it will be 50% and really big.

We see it as an enormous category.

We have done a better job of helping investors.

Chegg's stock is still down.

Not to be only one.

A number of tech stocks are being revalued.

What is going on and market, the industry?

It is never good to as a ceo what is going on in the market.

It is impossible to understand.

There are variables in the control of a company and those that are not.

Ukraine, money flows in and out, bond rates, unemployment numbers -- they all of fact.

As stock shift into different categories based on what investors think they can get the best return on.

On an individual basis, what you are seeing the internet, people are trying to understand that valuations probably got a little bit -- and they are trying to reevaluate the winners and losers.

For chegg, since we got such a great response is people are beginning to separate the things that they have a real value and those that are not so sure of.

We are waiting for -- alibaba to file for its ipo.

How do you think they will do?

We think they will come out strong.

I was with the management team.

They have enormous global ambition.

They have been patient.

The community has probably been less patient.

They are putting their hats in order.

My understanding, it may be as early as next week.

I think it will be extremely well received.

With yahoo!'s earnings, we get insight into aly baba.

It looks like it has accelerated.

I think you should be well received.

Daniel rosensweig, thank you as always for joining us on the show.

Former burberry ceo has officially joined apple as a new head of retail.

We will discuss her new role.

You can watch us streaming on your tablet, phone,, apple tv, and amazon fire.

? welcome back to bloomberg west.

Apple officially welcomed former burberry ceo, angela ahrendts, to the executive ranks.

She heads retail.

Will she have better luck?

Bloomberg news managing editor joins us from new york.

What did you think angela ahrendts brings to apple?

They do not often higher somebody from the outside for a job this high profile.

Incidentally, not a lot of women at that level.

That was an important breakthrough.

What she brings its high-end customers back to burglary when it had lost a lot of its financial.

It had become too commonplace.

She brought back the high-end customer people and made it more of a luxury brand.

That is an important thing to be done at apple right now.

She was key in china.

She is technologically savvy.

She made to the website which is something burglary was not known for before.

She got a lot done in her tenure.

She has a lot ahead of her.

Apple stores have not changed very much since their first introduction.

Why can't -- what kind of things do you expect her to do?

They have become crowded.

This place where you test out new things.

They are a busy place.

They certainly rake in a lot of sales.

Higher per square foot than tiffany's for example.

The seeing she have to think about, where do we take the retail store from here?

Asp was on the cusp we believe.

-- apple is on the cusp we believe.

Introducing new products more in wearable and the tv arena.

She will have to accommodate the retail space for these new products.

That will be a big challenge.

And there is a concern that some apple product have lost their luster.

Other people are flocking to other brands.

Even in the mobile phones which it did very well last quarter.

We need to note.

They did well because of the relationship with china mobile.

How can you keep that music playing?

That is something she needs to work on.

Apple is and they posted a job.

There is a world wide manager that this person will report to.

Isn't this a sort of sign that apple is not getting the high profile exposure with celebrities that maybe it needs?

Maybe they need to do more.

It is possible.

They have had a distinct approach to marketing and in their commercials.

Samsung has stolen their thunder in recent years with making fun of the people who lined up outside of apple.

They believe the apple products are the next big thing.

Samsung is saying the next big thing is here.

It is not apple.

Guess what, people?

Some people are buying into that.

That is a problem that apple will need to overcome.

The products are still very popular.

People in china do not like it when of the prods are not available.

It is still a lot of buzz, but applique use a more.

Tom giles.

The publisher behind the vote and wire is bringing content to life.

-- bvogue and wire is bringing content to lie.

The push to multiple screens is next.

? that was a clip for one of my favorites, "gossip girl." our next guest helped to develop that series along with america's next top model.

Just turned her focus to digital video.

She joins us to talk about how the magazine is taking their content onto the screen.

I am a huge fan of many of your shows.

I am series what the transition has been like for you from creating shows like that to creating content for digital video?

It started when i was at the cw because we were watching all of this young people.

We saw they were leaving the television screen and watching in different places.

That is when we realized there was something to creating content for different areas.

And the viewers will find it.

And if they do.

The transition hasn't been remarkably easy because we are in a time when a lot of the digital medium, and lots of people are getting into the digital business.

There is not as much of a difference between a digital content that is being produced professionally as there is tv content that is being produced professionally.

It is a little shorter.

Other than that, a lot of producers who are in a television and film and documentaries are getting into this space.

Condenast has vogue.

Where does the entertainment fit in?

We start to a digital video network using all of the different brands.

What that means is the brands that publish every month or in the case of the new yorker, every week, we have every -- over 80,000 articles and in the archives where we can find fascinating stories.

Movies like "our goal" -- "argo" and "beautiful mind," are just a few.

They come from condenast.

That is why we started our group.

Since then, we have built a digital video network which has channels.

Right now, we are at 11. we have 14 of them up within the next few months.

Considering the amount of content, we will produce over one hundred series four hour digital video networks.

And then we are expected to reach one billion viewers in the next month.

We are gaining a of momentum.

This is where publishers are making their case to advertisers.

You guys announced something called the scene.

Is it like your version of hello but for digital video -- hulu but for digital video?

We notice there are many places to find digital content in the digital space.

What we are doing is specific premium content that was being made for the digital platform.

It was nowhere specific for people to find if that kind of content.

As a result, we saw there was a void in the markets.

We decided to build a platform where we could have our content on and invite other companies who have premium, digital content they are trying to showcase in a particular environment.

We announce the scene which will launch this summer.

In addition to the brands and channels, we will have launch partners.

We announced abc news will be one of our launch partners as well as a variety, buzz feed, weather channel, and major league soccer and a comedy channel.

What are the biggest challenges when it comes to digital video and driving viewership?

How do you convince advertisers to put their money there?

It is really interesting.

This year, advertisers will spend close to $600 million into this space.

By 2018, they're expect it to double that.

Advertisers are interested in being in the video environment.

What we are also seeing is that while a lot of the advertisers this year is going to be fragmented, we know digital video will grow about 40%. dawn ostroff, president of conde nasta.

Thank you for joining us.

Still ahead, will there be a selloff when twitter shareholders are allowed to sell.

You can watch us streaming on your tablet, phone,, apple tv, and amazon fire.

? it is time for on the markets.

Where stocks closed out the session.

We did see the clients today.

This by a jobs report that on the face looked better than had been estimated when you look at the payroll numbers and the unemployment data.

There were reservations about some of the elements including stagnating wages and some traders did not want to -- going into the weekend giving the delicate situation in ukraine.

The clients across the board deepened for the dow jones ending down zero point 25%. on the markets, julie hyman.

You are watching "bloomberg west" where we focus on technology and the future of business.

I am emily chang.

On monday, twitter insiders will be allowed to sell third stocks.

-- sell their stock.

Dick costolo and major investors have announced publicly they have no plans to sell so what about the rest?

Adam nash of wealth front joins me now and in the studio.

Thank you for joining us again.

Aside from the top insiders who said they are not selling, how many shares are eligible for sale?

There are several hundred million.

Nearly 500 million will be available for sale.

There is a big difference between what you can do and what you should do and what people will do.

That is why there are so much attention.

How many employees do you think will sell?

It varies.

We launched a service a few weeks ago called single stock diversification and we allowed early access to twitter employees.

About 10% of them signed up for the service.

Add to this point, we have had employees sign a with over 200 million dollars in stock and choose from a wide variety of plans.

We have some data on what employees are planning to do.

What are they planning to do?

Not surprisingly, they are in it for the long haul.

The majority are not selling on the first day.

We published a few weeks ago.

The truth is, it is almost impossible to pick the right day to sell a stock whether the first day, or second.

It turns out a program over a long period of time is the right answer.

More than 60% are picking selling plans of two years or more.

They are in no rush.

Did costello -- dick costolo, i spoke to him earlier.

I want you to take a quick listen.

We have a very specific way of thinking about the long-term plan of the company.

It is about balancing investment in growth and operating leverage and efficiency.

That balance is the way i think about how we will build the business and the company while paying attention to the market landscape.

That is angela ahrendts -- dick costolo's vision of the company.

What about what is happening in the market?

We have seen tech stocks are being dramatically revalued.

Markets go up and go down.

It is one of the most predictable things that is unpredictable in the short term.

I think it's a great technology leader and we have a lot of grid technology leaders.

It is hard to be a public company.

It is easy to get focus on the day today and quarterly.

Most of the great technology companies had two folks on the long-term, not the next year or three years.

What will build significant value.

It is really focused on that.

With all of their talk about the potential bubble, it is something you think about?

You know, we stay away from predicting where markets will be day to day.

We are advocates for a very simple solution which is that you are unlikely to beat the market and pick the right day.

You cannot control that.

What you can control our seas and diversification and taxes.

We try to advocate for our clients that initial put the bulk of their portfolio in a diversified index based and rebalance and invest dividends and be smart.

You said even though you cannot pick of the right day, the first day is almost never the right today.


Everyday is different.

The marks are different.

It is hard to forget what people will do before the expiration.

The day of and the day after.

You are never going to pick the right today.

It'll always be a feeling you could have sold a little higher or bought a little lower.

You want to avoid that as much as possible.

The biggest problem that individuals have is that they get so hung up.

It is paralysis.

That is what you do not want to be in.

We advocate for a yeast steady selling plan.

Wealthy individuals, they put in place regular selling plants.

-- we advocate for a steady selling plan.

You were in other big social ipo's. any parallels that could be applied to twitter?

It was a big driver at wealthfront.

When linked in went public, you had the same effect, looking for the 50 executives and early employees who can meet their high minimums.

Linkedin had about 1500 employees when they went public.

What happened to the other 1400? we were not mature enough to offer this when faced the went public.

I am proud of the team of putting this together for twitter.

It is for all of the other employees who have equities but do not get a lot of support making it.

If we can help them, i feel good wealthfront wealthfront about what is doing.

Wealthfront's ceo, adam nash.

Thank you.

From corporate shuttle buses to expensive housing, a battle over inequality in san francisco.

An entrepreneur weighs in.

? i am emily chang.

This is bloomberg west.

As the inequality debate heats up, some entrepreneurs are looking at ways to give it back.

A san francisco native is a one of them.

He has cofounded five successful companies.

When his latest startup, here's trying to marry charitable giving with high-end experiences.

He joins me now.

Thank you.

You founded 4 companies before this.

All in san francisco.

But how did you come up with ifonlhy?

There are so many great stores way you can get things, but more people want experiences.

They want to give experiences.

I thought about why not build great experiences.

If we can make the benefit charity, even better.

By experiences, what do you mean?

They are from $30 to billions of dollars.

Seeing screaming eagles, playing tennis with famous tennis stars.

Anything you can dream up.

If we do not have it, we will design it.

Tennis with andre agassi.

A whole weekend.

A penthouse.

You have a mother's day stuff.

We have the coolest gifts from sheryl sandberg's sign the books.

Vogue books.

Cooking lessons.

How do afford all of this?

I have a whole team of people who ask our consumers what would you like to do?

What would your friends like to do?

We designed these experiences.

If we do not have them, people will say create a perfect birthday and we will do especially for down.

You give a large portion to charity.

Tell me how it works.

About $.70 on the dollar goes to charity.

We take a fee on top.

It is a great thing.

People want to check out, ifonly .com, there is a code of users can't use.

-- can use.

I know you have been watching what is going on with the inequality debate.

What has been going through your mind as you see the tensions simmer?

Thursday lots of new outlets in the city and it is understandable it can create a lot of resentment -- there is a lot of new affluence in the city and it is understandable it can create a lot of resentment.

A new initiative to raise $10 million and raise awareness through tipping point, a charitable organization to give back to san francisco and make it a better place for every body.

One person has been outspoken about the google buses that take people from the city to silicon valley.

Do you think things like that are unfair or important or need to stay?

Mark is a dear friend.

He is a hero of mine for everything he does to give back to the community.

Quietly i would add.

These are legitimate debates.

The buses seem unfair.

At the same time, taking thousands of cars is good for the environment and traffic.

I sort of chuckle because i am a fifth generation san francisco.

So does i want to argument and is somebody yelling about how they are changing san francisco.

But, that being said, there are serious issues at play here.

What do you think tom perkins and the comments he made are an unnecessary level?

He is a brilliant guy and he means a very well.

The way he said what he said it was very inappropriate.

And very misconstrued.

I think it was important because there should be debate about what is going on here and there is a healthy debate.

A lot of tech people are really concerned about making the city better.

They are aware of poverty.

They wanted to do more.

More and more, for tipping point, they are doing more.

What you think is the responsibility of the tech community?

Do you think companies like twitter are doing enough to give back?

Or should they not have to focus?

I think everybody needs to think about giving back.

Look at my own company.

It is integral to our model.

Look at salesforce.

Their model drives profits into nonprofits and a center there were forced out into the community.

Everybody should care about it.

Twitter went to the worst section of san francisco and put to their headquarters.

In a couple of years, i have been amazed.

I hope it will continue.

They did get a tax break.

They did not do it for nothing.

Isn't there a greater responsibility?

I have built a number of companies.

What we talk about is counterproductive.

What it is saying for every new job you create, we will tax you more.

When you are small and do not have a lots of funding, that is a disincentive.

The tax should be construed differently.

We want more opportunity.

Starting a company is hard.

Do you think entrepreneurs need to think about this at the beginning or think about this when they have gotten to a point where they feel more comfortable or should it be baked in from the start?

It is a great question.

People graduate from school and they are engineers and they spend 24 hours a day working and they do not think about anything.

They just build, build.

One day, they are successful and think maybe i can help.

From their point of view, that is all they are focused on.

More and more in business schools and conversations, let's set a few companies up from the get go so they are doing good all along the way.

Housing prices are rising stock the cost of living is arising.

Valuations are rising as you have been here a long time.

Do you think it is a phase or a bubble?

Do you think it will pass?

We are in a bubble.

It is different from the last bubble.

People are building.

It is a lot more real.

Cycles come and go.

Prices go up and down again.

The city is becoming more expensive.

And more built out.

We have to do more to help people.

Trevor traina, ceo and founder of ifonly.

Thank you for joining us.

Marlee matlin is using technology in her fight to bring subtitles to online programming.

We will tell you more about why she is going to crowd sourcing to help 35 million americans who are deaf or hard of hearing.

? welcome back to bloomberg west.

Marlee matlin may be deaf, but she can sure make a lot of noise.

After a five-year battle, she has won the fight to bring subtitles online.

Starting this week, services like netflix have to offer close captioning or face the same size as traditional broadcasters.

Marlee matlin is partnering with a company to have a more accurate closed-captioned.

Cory johnson spoke to her.

My efforts for caption which has been a long -- a lifelong pursuit have resulted -- as a little girl, i remember watching television without any assistance with captions.

There was nothing there.

I had to make up stories on my own.

Fast-forward to 1989 or early 1990's, i mean -- well, go back to when i was a little girl.

I wrote to the president saying we needed patches.

No answer.

And then i made a movie, i had a little media attention because the oscar i won.

Just a little.

I use that attention and in that medium from the studios to talk about closed captioning.

Then i got to the attention of washing, d.c. and we got the captioning lob pass.

Now -- captioning laws passed.

-- now fast forward, we are using our mobile devices, new technology.

And the closed captions did not follow the technology.

And if so, this time i had to make even more noise because you have companies like netflix and whole who were not captioning.

We had to wait.

There are 35 million of us who are deaf or hard of hearing.

35 million of us.

I am not talking internationally, but just in the united states.

I said i am tired of waiting.

That is where vicki comes in.

She uses crowd sourcing.

It allows people to great captions, the subtitles using the language.

Using crowd sourcing?

New technology?


Even better, accurate.

They are making sure that every word on the screen or the film is accurate.

It is there in 200 languages.

So often it is in accurate.

It is terrible and lazy and sloppy.

And so, i have had enough.

We have had enough.

What vicki is doing is great.

It is run by the consumers.

Our goal is with so one billion word mark is to have one billion words captured by the end of the year.

Right now, we are at six hundred million words.

I think it is a great effort.

It is wonderful what they are doing.

There are requirements now for these companies to do it.

The fcc has mandated that all internet broadcasters have to be captioned and have to be accurate.

Word for word, have to be accurate.

We do not want to miss understanding.

My kids catch the mistakes.

I am watching.

They say mom, this is not right.

The key steps -- vicki steps in.

How does it work with some the things you have done specifically on the job?

Switched at birth, we are in our third season.

Abc has been supportive.

What do they have done is subtitled.

They did an entire episode complete with subtitles without sound.

And no television show in history has ever done that.

The captions were more correct in that when?

-- that one?

Of course, they were.

I was in it.

I make a noise.

Cory johnson with academy award-winning actress, marlee matlin.

Now it is time for the bwest byte.

One number that tells a lot.

We have a special byte giver.

What have you got?


The number of lines of codes that john carmack wrote.

They said they might sue oculus, which facebook is trying to buy.

Zenamack said it is a videogame gotta wrote lines of code that is their intellectual property and they deserve a slice of the pie.

Tell me more about the john carmack guy.

He has over $100,000 followers of -- 100,000 followers on twitter.

He is a big guy into video games.

And so, people really look up to him.

When he joined oculus, that he gave them some the clout they needed.

Facebook is still not commenting on the story?

Not really.

They want it to go away.

Sarah friar, thank you so much.

Thank you for watching bloomberg west.

Happy friday.

Have a wonderful weekend.


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


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