Twist in Apple-Samsung Case: Bloomberg West (04/25)

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

April 25 (Bloomberg) -- Full episode of “Bloomberg West.” Guests include UC Hastings' Robin Feldman, Silicon Valley Space Center's Sean Casey, Intel's Carolyn Duran, Epix CEO Mark Greenberg, Lytro CEO Jason Rosenthal and Habit Design CEO Michael Kim. (Source: Bloomberg)

[captioning made possible by bloomberg television] live from here at 3:00 in san francisco.

Welcome to "bloomberg west." we cover energy, technology and innovation, i'm emily chang.

Apple and samsung are putting their final witnesses on the stand as they try to sway the jury in their trial.

Another court may have thrown a wrench into the case.

Space dax is going to sue the air force over contracts as success with new rocket technology.

We'll get to those stories in a moment.

First a check of the headlines.

Some users are reporting programs with the camera on the smartphone.

Samsung tells "bloomberg west," samsung is committed to committing the best experience for customers.

We know there is an issue that causes camera failure, pop-up error messages.

Customers are urged to visit their carrier or call samsung if they have this issue.

The official deal was completed today.

Seven months after the purchase was announced, the final prize was slightly higher after adjustments.

30,000 employees are transferring to microsoft as part of the deal.

And netflix has signed deals with three small pay tv companies to offer netflix.

The deals are with r.c.n., telecom, atlantic broadband and grand communications who have a combined total of fewer than 1 million customers.

Terms weren't disclosed.

Netflix has similar deals with companies in europe.

The evidence phase of the apple samsung patent trial was scheduled to wrap up today in san jose federal court.

There was a last-minute twist that may result in more testimony next week.

A federal appeals court in washington has revived a lawsuit that apple filed against google's motorola mobility.

That court rejected the interpretation of a patent that is also at issue in the current trial.

The judge?

San jose says more witnesses may need to be called.

A law professor joins us via skype from palo alto.

Robin, first of all, how big a wrench in the case is this appeals court decision?

It certainly is a surprise that i doubt either side was expecting.

Now, the judge does not have to listen to the decision that was made in another case.

It's not binding, even though they're talking about the meaning of the same patent.

However, the judge's decision would go to the same court of appeals that the other decision went to as well and if one is a trial judge, one does not thumb one's nose as an appellate court easily.

Now, as i understand it, the appeals court adopted a narrow interpretation of the patent that accounts for the biggest portion of the damages that apple is seeking and this is a data tapping patent tapping data to turn it into a link.

Does it account for the greatest of the damages, $2.2 billion that apple says it deserves, couldn't that have a big impact on the award in this case?

A narrow interpretation of that patent could reduce the amount of damages that would be appropriate in this case if it were infringed.

So, $2.2 billion, do you think that's fair?

The apple-samsung trial has always been about messaging, messaging for the jury and messaging for those outside the courtroom.

By asking for $2.2 billion, apple's message is we have really been hurt by this.

By asking for a very small amount in response, samsung message is that's ridiculous.

You have asked for my opinion on what it is and i would say that's up to the jury to decide.

As you mentioned, samsung is asking for a small amount.

They're just asking for $7 million.

So, robin, how do you expect this to play out?

One of the things that's different in this trial from, which i would call version 2.0 of the apple-samsung case from the first version of the case is the background conversation.

Two years ago, no one on main street had heard about smartphone wars or patent trolling.

Now everybody has got an opinion of how the patent system should be run and what should happen.

I would suspect that there will be a more lively conversation in the jury room this time and perhaps take longer than last time.

The last time this happened, robin, a $1 billion award came out, i mean, is there a chance or how likely is it we could be as shocked by the next amount or do you see these as two completely different trials?

I don't see them as different trials.

I think they are intimately related.

I think that the jurors will be aware of the amount that was awarded in the last case.

That could easily affect the amount that they choose to award in this case if they do choose to award it.

I would not be surprised to see another very large award in version 2.0. all right, thanks so much for weighing in on the case as it progresses.

Well, the company has made an important leap forward in the private space race.

With the boost from the latest launch landing in the atlantic ocean.

It is a step towards reusable rockets.

At the same press conference, he will protest the air force's decision to give a military satellite launch contract to a venture between lockheed martin and boeing.

Peter cook is in washington as well as our editor at large in new york and joining us is sean casey, managing director of the silicon valley space center.

He is in california meeting with engineers at the space studies institute.

Sean, i'll start with you.

There seems to be conflicting opinions about just how successful this latest launch was since the boost stage was destroyed in the ocean so it actually wasn't reusable.

How successful do you think it was?

Well, i think based on what mr.

Musk had to say, the telemetry from the first stage indicated that it had come down successfully and that it had maneuvered to a zero velocity point before dropping into the ocean.

The comment from musk was that the ocean was pretty choppy and so that contributed to the demise of the vehicle, but based on the telemetry which is pretty much how we get all of our engineering data back from launches, the telemetry indicated that the vehicle performed successfully and is ready to move on to the next stage of testing.

Cory, what's your assessment about how good this launch was and the prospects, the future of reusable rockets?

Well, i think we have to take this in the context of when it's being announced and how it's being announced.

So the company and musk are challenging they lost the attempt to earn this contract, $70 billion in satellite launching for the military.

We don't know the numbers, it's a secret contract.

They're protesting this.

Their argument is, hey, just because we haven't passed all of the tests required of us, just because we don't have a functioning system yet, we have this great technology that could be cheaper.

We vice president shown you the numbers.

We haven't been able to prove it yet.

I really look at this as a discussion of this technology that he is trying to develop, but trying to insist that it's ready for prime time when it's still being tested.

I think that context is really important here.

This isn't just two separate announcements, one of a lawsuit against the government trying to get another shot at a contract they didn't win, and the second being an announcement of a success of something that we have never seen the evidence of that crashed into the ocean where they're fishing out pieces and blaming the weather.

I think they have to be taken in the combined context to understand why they're saying these things right now as part of an effort of space-ex to portray itself as a successful technological exercise already.

Peter, you have been following this very closely.

Doesn't this lawsuit pose a risk to musk, to space ex?

Well, it does because he wants the air force to be a huge customer.

He wants to do military satellite launches for the air force and by suing your biggest customer, you do take a risk.

There is a chance they hold that against him down the line in the future, but it also shows you how much money is at stake here.

They want to take on these entrenched interests of lockheed martin and boeing, the two giants of aerospace who have combined to form united launch alliance.

They had a strangle hold on these contracts, on these military satellite launches for years.

If he can get his foot in the door and prove to the air force that he can do it on a cheaper basis, he has the makings of a real business that could make money over time.

Cory mentioned the number, $70 billion through 2030, that's what they expect to spend on these satellite launches.

He wants a piece of that pie.

The news conference today was an effort to stick his foot in the door and get congress, he has already gotten some support from john mccain on this front to look if there is real competition here.

Sean, what else does musk have to prove here?

One of the space-ex comments has been the notion that the goalposts have been moving continuously.

That space x was to have three successful launches in five months.

They have done that.

They have also talked about the cost for the boeing-lockheed service which comes in at about $380 million per flight.

Spacex believes that it can do it at a fraction of that which is about $100 million a flight.

And in addition, spacex and perhaps others considered that the engines are coming from russia.

If we're putting ourselves on a critical path where we require mr.

Putin's cooperation in successfully launching our vehicles, this could be a problem in the future.

Peter, musk has been playing a bigger role in washington, sort of flexing his muscles.

How do you see this playing out?

Well, it was interesting just to see in the performance at the press conference today, first of all, we had all of this mystery around the press conference, be there at 1:00 at the national press club where there was an announcement.

We didn't know what he was talking about.

He started first of all about the success of the reusable rocket, the safe landing in the ocean.

A lot of us were waiting to hear the real news.

We were sort of aware of that.

He dropped in passing the notion of the lawsuit and this competition, it shows you that he is still learning the way of washington, still trying to flex his muscles in washington.

He is a very popular figure given the success of tesla, given the promise of competition.

Take a listen to what he had to say on the issue of competition.

This is going to ring true to a lot of members of congress.

Take a listen.

This is not spacex protesting and saying that these launches should be awarded to us.

We're protesting to say these launches could be competed.

If we compete and lose, that's fine.

The issue that he is giving taxpayers a better bang for their buck, that will resonate here in washington.

It was an awkward performance.

He is taking on lockheed and boeing, two giants, he better be ready for a fight.

These are power players in washington that are ready to eat his lunch, if they can.

Peter cook, our chief washington correspondent, cory johnson and sean casey, managing director of the silicon valley space center, thank you all.

Coming up, pinterest announces guided search, a new way for users to find their favorite pins on the social discovery site.

What does it mean for users and advertisers.

That's next.

? ? welcome back, i'm emily chang.

We are getting some new numbers on just how fast pinterest is growing.

The number of pins now total 30 billion, up 50% in the last six months alone.

Pinterest is also rolling out guided search, the feature focused on mobile users to help them seven the site more easily.

Bloomberg news tech editor joins me in the studio.

What is new here, what is different?

Basically what you can get now is a curated search experience.

You're on your mobile and you want to go on a vacation, maybe you want to go on a safari.

That is the extent of what you know.

You type in safari.

You get all of these pictures, these images, these descriptions of various people have gone on or they found in magazines.

You can just sort of scroll through them until you find something that looks intriguing and you can click in and get more information.

Is this a shift in terms of strategy for them from collections to discovery?

One of the criticisms with pinterest, it's so easy to collect stuff, but it's really difficult to discover other people's things?

It's discovery and the actual, the clicking through to a purchase or to making a decision, a conversion.

That's really the gold mine here.

No one, google owns search on the desk top.

Nobody owns search on mobile.

There are different ways to search for things.

Pinterest is trying to be the destination you would go if you want a curated visual experience, you situation for things where you're active in the process.

Now, what about advertising?

I presume this is going to be, this could be like a golden ticket.

Yeah, pinterest is one -- the valuation of pinterest has, you know the people that are betting on it see the advertising dollars years in the future.

$3 billion.

3.25 billion, they're not worried about it now.

Eventually you have to turn on that machine, you have to turn on the spigot and see how well your ads can do.

It's a tremendous opportunities.

We just haven't seen it yet.

If you think about clicking through to these sites and buying things, the opportunity is tremendous.

We know they have been experimenting with monday advertisization.

Recently, they were making zero, right?

Yeah, it will be pretty apparent when they go after this in a big way.

They'll start to hire salespeople in a pretty big way.

Advertising is a business where you need salespeople getting in front of brands to show how it works.

Thank you, thanks so much, we'll continue to follow pinterest as it tries to start making that money.

Still ahead, what happens to google plus now that the man who led google's social efforts is leaving the company.

You can watch us streaming.

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

Google buzz, google wave, google friend connect, all three social efforts by google that flopped.

Is google plus nexed?

The head of google's social network is leaving the company after eight years.

Google says this does not signal the end of google plus.

This has no i will pact or our google plus strategy.

We have an incredibly talented team that will continue to build great experiences.

Michael kim joins us via skype from seattle.

He worked with vick at microsoft to launch the cloud services and brad stone of bloomberg business week here in the studio who wrote in this week's issue a new story about google's and facebook's fight to control technology.

Why did vick leave?

Is google plus dying?

Google plus it continues to be important to google, photos, hangouts.

Those are growing products.

They're being more integrated in android.

The identity aspects are more in the seven.

The original promise of google plus as a social network didn't work out.

We know that.

No one is spending time there.

Perhaps no coincidence, he is leaving after eight years of google.

The promise that that product had which he staked his name and reputation to didn't work out.

Michael, you worked with vick at microsoft, what kind of guy is he.

The dot net was spectacular to get information about people into the cloud, right?

Yeah, so i had a chance to work with vick while we were launching really the industry's first personal computing platform which was caught dot net services.

It went by the terrible code name hailstorm at the time.

A lot of what we see with google plus and facebook platform and apple's i-cloud are efforts in many ways to go back and hopefully relearn or learn from the past mistakes that we had made back with dot net.

Dot net services was really an intent to take the user's data and putting it in the cloud so your contacts, your calendar and most importantly your wallet and then allowing other or committees stated web services and applications to personalize their experience to you.

And so it was really a little bit ahead of its time.

Vick was responsible for development and i ran product management.

He was very successful there.

We had over 100 partners at our launch that all signed up to use dot net services including american express and ebay and i think there was some key problems that persisted with that, i think a lot of companies including google plus are still encountering.

So if dot net was behind its time, maybe google plus -- if dot net was ahead of its time, google plus was behind its time.

Brad, i have seen some speculation of google missing out on whassup and the huge messaging social product, and google is throwing up its hands and say we're doing something different?

That can be true.

I can't say for sure.

I wouldn't lay that at vick's feet.

What's-up is a mobile tool, it could have been integrated quite nicely into the android platform.

Facebook paid $19 billion.

That was an aggressive buy based on facebook's highly valued stock price, not clear that google even wanted to play in that bidding war.

Brad, you wrote a piece in the magazine this week about google versus facebook and their acquisition strategies.

They're making big crazy unpredictable bets.

How does this play out?

Yeah.

Last week, a week flash ago now, google acquired a drone firm, facebook went and acquired its own drone company.

We ask the question, what is going on here is this i think there is equal parts, inspiration and anxiety.

Inspiration on that these bets, they inspire employees and they allow larry at google, mark at facebook to really try to forge a future.

We talked about elon musk earlier in the program.

I think e is inspired by what elon is doing.

The anxiety amid this turmoil, the transition to mobile phones and these guys are looking to see what is next, what is after phones.

What's the next platform.

Michael, we have 30 seconds, from the outside, do these kind of acquisitions make sense to you or do they strike you as totally crazy?

Well, some of them are certainly totally crazy, but this is the kind of time in the market where you can take these crazy bets for fairly minimal financial risk, right, at least on behalf of certain large companies with a lot of cash on hand.

I don't think they're totally crazy.

I think that these are place holder bets that could grow into saving the company in the next 10 years and i think that's a worthwhile bet to take.

Michael kim and brad stone, thanks so much.

We'll be right back with more of "bloomberg west" after this quick break.

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

I'm emily chang.

Profits from mining precious metal has funded armed conflicts for decades and some of these metals may be in your pocket.

Four of the conflict minerals mined in the democratic republic of the congo are key ingredients in your laptop and phone.

Let's look at your phone.

Tin is crucial in soldiering pearl to circuit boards.

Tungsten helps your phone vibrate.

Gold is used for collective wires.

Intel has spent the last five years trying to track down where the minerals come from.

The chip giant is the first company ever to manufacturer and ship conflict-free microprocessors.

Corey johnson spoke with manager carolyn durand and asked her how intel began this process.

The first thing is to understand technically where they split in your supply chain.

Intel is a technical company.

We make our microprocessors.

The first level of understanding where they were was pretty straightforward for us.

Then comes the gative reporting, how you get down to the mine for that.

We asked our supply team.

Our supply team didn't know and we didn't know.

As we went down that chain, we landed at smelters.

We found smelters to be a place in the supply chain where you can hone in and do auditting from the mine to the smelter.

Our focus was figuring out how to audit a smelter.

We put an audit place in at the smelters.

How do you audit a smelter, what do you do?

We do it in three steps.

First we want to make sure they have a good conflict minerals policy, that they actually care about the issue.

The second is a mass balance.

You take a look at the transactions that the smelter had ran over time and how much mineral or ore or recycled material came in over that period of time and how much product they sold.

So really understanding the scope of what came in and out.

For example, as a smelter said that they took in enough ore to take 25 tons but sold 40 tons, there would be an obvious gap there that you would have to go and seek and find out.

Once you have the mass -- go ahead.

We put up a map that showed all of the places you got to trail through in that supply chain.

Talk to me about the global mayor of that.

For our supply chain, we have identified about 150 to 200 different smelters that feed into our total product line.

A smaller portion is for microprocessors.

As part of that, we found smelters in over 80 different countries so far or 80 different smelters, excuse me, in 21 different countries that we have personally visited to look at that supply chain, look at how they process materials and those transactions that have been coming in and out.

So while the conflict is focused in the d.r.c., the supply chain is literally all around the world.

How do you get the smelleders -- what is the message you give the smelters to care about this?

Fundamentally as a commodity business worth all about the cost of the input.

Yeah, from our perspective that has been one of the biggest challenges for us.

We were fortunate that in the space we had several early adopters that really cared about the issue as well and worked with us.

In some cases, it's just a matter of getting in the door and speaking to them.

In other cases, it is supply chain pressure put upon industries to help join this cause and drive forward.

It's took us a lot of tenacity and in many cases, when you get down to the fundamental audit, those supply teams actually do those transactions in mass balances as part of their inventory anyways.

To ask them to demonstrate where it came from was a smaller leap once they understood the issue.

Do they really care?

Fundamentally, this is a human rights issue and that doesn't always play very well in business.

Yeah.

I would say it's a mixed bag.

There are some in the smelleders that we found that truly do care.

I have high confidence they're doing it because it's the right thing.

Others it is supply chain pressure.

When enough countries like intel say we need this to happen, it became something they needed to do for their own business sake.

It's a combination.

A couple seconds left, why does intel care?

We care because it's the right thing to do.

We are a global company and we're a global supply chain.

We felt we could make a difference.

That was intel supply chain director carolyn duran with our cory johnson.

Now, i want to turn to an inside look at one of the most well known image licensing companies, that is shutter stock.

It just moved into the empire state building.

Stephanie visited the new office.

Take a look.

Welcome to shutterstock headquarters, home of one of the world's largest digital stock photo libraries.

Located on the 20th and 21st floors of the empire state building, shutterstock brings a starred-up to an old school building.

This is the alice in wonderland building.

Are you kidding me?

Massage rooms, a secret library, and two unbelievable game rooms it has.

We get so much done here.

We like to have fun, too.

John started shutterstock 11 years ago from his manhattan apartment.

He took the company public in 2012 and is known as the first billionaire to come out of new york city's growing tech scene.

What made you decide to stay in new york city?

New york is the business center of the world.

By being here, it allows us to interact pretty often with the biggest media agencies in the world.

That's important to us.

300 employees work in shutterstock's new headquarters, but remote employees have a presence in the new office, too.

This is actually called i-brian.

This belongs to a remote employee.

He is inside of here somewhere?

He is in the computer.

He can control this from where he is and work with people in the office.

Shutterstock's teams voted on conference room names, furniture, and even food choices, but big data determine the office layout.

When you look back on all of our calendars and found that conference rooms were used by two to five people.

So we decided to create lots of smaller ones to accommodate that.

Building this office is just a snapshot of a much bigger picture forshetterstock.

We are always looking for what he can do in the future, what we can build next.

Stephanie in new york.

The l.a. concert venue l.a. forum got a $100 million makeover.

That's next.

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

All week long we have been looking at how technology is changing hollywood in our special series "wiring the world." movemakers like to say content is king, but what if you can't find that content.

F.x. is investing in its interface.

Jon erlichman is in l.a. with more.

Jon.

Emily, i don't know about you, i think a lot when i'm sitting in front of the tv to think about what i am going to watch.

The user interface is an important part of the story.

F.x. is the home of movies from g.m.g. and lion's gate and paramount.

The c.e.o. joins us from new york.

Mark, before we get into the user interface and what you have been thinking a lot about, tell us how much content, how many movies you have at your fingertips and how many your subscribers at your fingertips?

It's great to have greet partners.

Between the three studios, exclusive rights, also, we put on our digital website, we have close to 3,000 of the 15,000 titles that are in the library of the three sthreedos.

We are able to offer incredible breadth and depth of content of what consumers can get access to.

It's an amazing amount of content.

What about navigating through it?

What are some of the things you're doing to ensure that people are actually watching a lot of that stuff?

You know, look, there are always people who prefer to watch a linear experience just like on tv right now.

You help carate and bring content that you think people want to see.

There are always people who want to do that.

We have on demand 150 movies.

To navigate 3,000, you really have to find more interesting ways to do search and discovery.

I always joke, my wife and i love watching romantic comedies, right, but my kids will pretty get upset if we watch "it's complicated" one more time.

We do different things, you can go on our website and you'll see there is the, what i'll call the old blockbuster stores.

There is all of the new releases, you can go into the different categories and genres.

In addition to that, we have other ways to do seven.

You can define it byars, categories, art, actors, actresses, director.

The most fun thing we do in discovery is what we call six degrees of separation.

Take two actors and see how they're connected in filmgraphy.

What is fascinating to us, when people do that, they find something new and 90% of the people watch one of the movies we recommended.

In that careation and the search and discovery, we look to find easier ways, we go old fashioned, very linear, here is comedy and drama or the more fun things which are how to connect.

Yeah, sort of explore the curiosity factor for the subscriber.

Speaking of search, what about voice search?

Amazon has been making a big deal about this for their new fire tv.

Are we advanced enough that people truly are using voice seven and getting the kinds of results they want?

Listen, i think the amazon product, we launched on the xbox kinect two years ago.

They do voice activated as well.

I think a lot of this is kind of a fun, cool hip thing to do.

I think we're seeing on xbox, we did a million and a half downloads of their app in 10 days.

People were really into finding new ways to play with these devices.

Is it into the nomenclature that we all know how to do it and it works perfectly?

No.

i'll tell you what, the amazon product, i have played with it, works really, really well.

You mention the amazon product, the xbox product, it's a very different experience if you're watching through sort of traditional cable on your television and using any of these other platforms, roku is another one.

Right.

Does it ultimately change, influence the kinds of stuff that people end up watching on epix on these different platforms?

The new release titles are always still the big drivers.

When you have "hunger games" and "skyfall" and "star trek." those are the big blockbuster movies people immerse in.

When we get them beyond that, the deeper libraries, we are finding that people are getting more engaged in the library if you can help find an easy way to get there.

I think our country has always had a love affair with movies going back for almost 100 years.

Our job is to find a way to make it available for them.

We're on 450 different devices today between the xbox, the ps3 and 4, the ipad, the iphone, we have to use the technology that these devices allow us to use to help enable that search and discovery.

No doubt.

Thanks, mark.

Thank you.

That was mark greenberg, the c.e.o. of epix talking about the home viewing experience changing because the technology.

What about when you're going out, when you're going out to see a concert, here in los angeles, the forum just sent $100 million on a big renovation to stay relevant, be modern, here is what we found out when we went inside the forum.

The forum has hosted every big musical act you can think of, but in its older years, it really has to battle for attention with its younger cross town rival, the staples center.

It opened in january after a massive makeover.

Let's check it out.

Over here you have some of the eagles equipment, the first performers in the new forum.

To give the forum a proper face-lift, the madison square garden company had spent $100 million on renovations.

It was arguably the most important music venue in the world at one time.

Nobody does it better than m.s.g. as you see it at the garden.

He saw the opportunity to return it to its original splendor and more.

We came in and ripped everything out, took the seats out, basically gutted the building.

If there is one thing that really makes the premiere concert venue, maybe not just in the u.s., maybe around the world -- i got it.

One thing?

The sound.

Don henley says this is the best sounding build in the world.

This is coming from a guy who knows.

It's no accident, they put sound baffling everywhere.

It was already a great sounding building.

Top acts are taking notice.

Kiss and def leppard make tour stops in july.

In august, it will play host to the mtv video awards where miley cyrus made a splash last year.

While the rockers wait to play, they can hang in stylish hangout rooms, the games room or sweat it up in the fitness room.

I get to test my fear of the heights.

We are on the tension grid at the top of the forum.

If you're a lighting expert, you would have to get harnessed up here, you can walk along kind of "star wars" like.

I notice noticed you guys have your own mood lighting here at the forum.

Yes, we have over 600 l.e.d.s in the sky.

We call it our starry night.

That is cool.

Pretty incredible, huh?

Pretty dreamy.

Look, i think emily, they're going after the concert crowd.

They do want to do sporting events.

We're saying hey we can make it a great technology sounding experience.

Jon, thanks so much.

Well, the camera let's users refocus photos after the fact and now there is a new higher end version aimed at professional photographers.

We'll tell you how it works live right here on "bloomberg west" next.

Welcome back to "bloomberg west." i'm emily chang.

When lytro launched its first consumerer camera in 2012, the technology was revolutionary, letting users refocus users after the fact.

Now the company is making a push into professional photography with a new camera and silicon valley has helped fund that push with $90 million of funding.

Jason is here with the studio with the video camera.

Tell me about it.

Thanks, emily, this is a big step forward for us.

We have rebuilt the camera, new hardware and software, huge level of new capabilities for what we call the creative pioneer market.

Show us how it works.

I'll get you framed up here.

I'm using a new feature which makes sure that we capture all of the depth in the scene.

What i'll do is i'll hand it over to you and got a beautiful shot of you and the bay.

That is not a beautiful shot of me.

We'll do anyway.

I look awful, ok.

So there is my face.

If you try tapping in the background, you should be able to bring that all into focus as well.

Ok.

interesting.

Oh, there you go.

Wow.

So why are you guys going after the professional market versus consumers?

The professional camera market is really large.

It's about a $22 billion a year market, and what we found with the first lytros, the people that gravitated toward the technology were this group of creative pioneers.

These are people who want to stand out with visual differentiation in their work and really produce pictures that you can't get anywhere else.

It was a pretty natural evolution for us to move up the chain that way.

What would a professional photographer need refocusing technology?

Don't they take perfect pictures?

Lytro is more about refocusing.

We're inventing and involving a new category of imaging called camera 3.0. camera 1.0 was about film.

Camera 2.0 was the shift from film to digital.

3.0 is about creating the rich three dimensional data about the world and providing algorithms to that data to do things in pictures and in the hardware that you have never been able to do.

Remind us now the technology works.

What we're doing, when you take a picture with lytro, we're getting all of the depth data, all of the three dimensional data in the shot.

That lets us create things like breakthrough lengthses that have zoom lenss and light capture ability that you have never had before.

We can move lots of things that you always had to get right at the time of the picture, the perspective, the focus, the depth of field, that moves into software post-processing.

The camera is $1,600. that's right.

Has nikon or canyon try to buy you guys?

It seems like a feature.

At our core, we're really a software company.

We're using this rich data combined with lots of computational power to bring these new capabilities to cameras.

It's a different way of thinking than a traditional camera.

Could you license software to a canyon or a nikkon?

We could.

Our focus is building the best end user experience for our creative pioneer customers.

We think the best way to do that is building everything ourselves from the ground up.

What kind of people are buying this?

These are, it ranges from the top end professional photographers to creative professionals all the way down to mass consumers and aspiring professionals.

Again, it's really going back to people who want to differentiate their work and do something that you can't do this on any other camera.

I want this on my phone.

That's what i want.

You bring up a great point.

Our vision is that anything that has a sensor with a lens in front of it is going to benefit from camera 3.0 technology.

So it's phones, it's medical imaging, it's film and television production.

It's security and surveillance.

So over time, we hope that you'll see lytro technology in every device like that.

Fascinating.

I could really use this.

I'm not a very good picture taker.

Jason, thanks so much.

Thank you.

Time now for when we focus on one number that tells a whole lot.

Jon is in l.a., cory is in new york.

Take a picture right now.

What do you got?

Oh, hello.

That could happen.

You're not a picture taker.

Another good picture taker is the subject today, 240. that is steve swanson was in or bit about 240 miles above the earth when he snapped this selfie floating next to the international space station and perhaps topping ellen's mega selfie at the oscars.

Very cool stuff.

I love how his partner tweeted that it's really hard to take a selfie in a space suit.

They tried several times and this was the best they got.

Maybe yours will be better that way.

I don't know, you should try.

Yeah, yeah.

The selfie thing is getting kind of out of control.

I'm trying to limit myself.

It's kind of getting uncool.

Just let it go.

Only if you're in space.

Selfie like crazy.

I'm all for it.

All right, thanks, guys, and thanks for watching.

We will see you later.

? ?

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change