Live from pier three in san francisco, this is "bloomberg west." microsoft is the latest tech company to want a piece of the entertainment pie.
We'll take you inside the microsoft santa monica studios where it is working on original show starring big names.
It is a viral content website with a twist -- we will speak to upworthy's cofounders.
First a look at your top headlines.
The supreme court is taking a pass on hearing a case challenging the nsa collection of american phone records.
The court rejected an activist position to bypass the at traditional appeals process.
Any changes to the nsa surveillance program have to go through congress.
Twitter is diving deeper into android.
The company which was launched in october makes an app that allows android users to create customizable screens on their devices on the cover team says it plans to produce something even better.
Dropbox has obtained a edit facility of more than $500 million.
The financial times says the storage company will use the money to set up a data center and expand globally.
Dropbox earlier rates free hundred $50 million earlier this year.
Cory johnson is with me now talking about yahoo!
And the fight to dominate content.
Wants to buy original series?
It's amazing how many companies we see who have the same interest in infrastructure.
They're all looking at original content to try to drive people to their sites for all the other stuff.
Have been doing short form stuff but they are looking at 10 episode shows that my cost $700,000-a few million dollars per episode.
All these businesses work headed toward search.
Now they are going toward this original content business.
Can you only watch it online?
Most likely but we are seeing the success that netflix has had drawing customers.
These other companies are saying we want those same people and we got the cash to spend.
At the same time, netflix has produced a number of hits and amazon has not named one yet.
Let's bring in jon erlichman who recently got a look inside the microsoft xbox entertainment studios and microsoft is making its own original series with the likes of steven spielberg.
Tell us what you saw.
It's a pretty fascinating story.
A year-and-a-half ago, microsoft hired a well-known producer for the longest time, everyone has been asking what does that xbox team working on?
They had not said much until now.
We got an exclusive look at what they have been doing behind the scenes.
Here is a taste -- inside this low-key santa monica office building, microsoft is plotting its tv future and it is tied to this area and xbox entertainment studios is a unit of xbox created to make original tv shows.
This is the start up with the help of microsoft.
Led by t nancyellum, they're developing all sorts of shows.
A steven spielberg series, robot thriller, plant life coverage of the bomber room music festival -- bonaroo music festival.
To watch, you will fire up your xbox and if you are one of the 48 million members of its online entertainment network, you may be able to stream xbox originals.
Microsoft may also strike partnership deals to distribute some of the shows outside xbox.
Shows will also be interactive.
You will be able to do funky stuff gamers like to do that is different than lying on your couch watching cable.
Microsoft is doing this to keep xbox loyalists happy but also to broaden its reach.
It's estimated each xbox sold is worth $1000 of purchases to microsoft between games, shows, and xbox live, a number that would climb.
They have a goal of making xbox one the anchor of its home entertainment network, connecting to other microsoft advices like tablets and phones.
Traditional tv places -- this is different.
Adding to the tech office you'll come a ping-pong table, well-stocked lunchroom, and -- we commemorate our successes by ringing the spell.
Let the games, make that tv shows begin.
For those curious about when these shows will start rolling out, they will start with this bonaroo music festival coverage and other shows will follow.
Maybe the one where there is less developed is the one so many people are interested in, the "ahalo" show being produced by steven spielberg.
We will have more with nancy pellum, now president of xbox entertainment later this hour.
What do you think of yahoo!
Now getting into this game?
Has tried original shows for a while now.
Onebeef we have heard is when they make a show, where does it end up?
There are different positions of our inside yahoo!
When you make a show, does it end up on the homepage?
It still becomes a very important question.
Has been trying to figure that out but as that is getting figured out, they know they've got this time of year when you got to make splashy announcements in front of advertisers.
They've got to have something encouraging to say at a time when everybody is fighting for agile and traditional tv dollars.
I think that is the back story of white yahoo!
Would feel the need to pony up more cash for original shows.
We have heard netflix warned about the rising costs of content and what that might mean for future shows.
How much of a game changer is" house of cards" was and the viewing habits.
? that has been an accounting challenge for netflix.
They have had to pull the costs forward making the show more expensive.
Yeah, the biggest problem with netflix will always be that we really don't know the specifics on how many people are actually watching the shows.
I think netflix got a break from people who follow the company because their subscriber numbers continued to climb as "house of cards" was rolled out.
You are right, it is clear they paid a lot of money for that show and we don't necessarily know how many people are watching it.
That sets us up in this golden age of television for high spending by everyone who is hungry for content.
The end result may not be a winning formula for everyone.
Right, you've got big stars in the shows as well like kevin spacey and robin wright, these are expensive talents.
How does yahoo!
And everyone else keep up or is "house of cards" an anomaly?
The benefit that these big players have besides having deep pockets is a different -- is different business models.
If you go to the case of netflix, you are talking up boosting their overall numbers of subscribers.
It used to be a show lives or dies on television based on how many people are tuning in and whether that is good for advertisers.
For the xbox, if they can sell more consoles and get people to sign up for xbox live, maybe that is the metric for success.
I think there is coverage to a certain degree for all of these potential big spenders in new tv content for it thank you.
We will be right back with more of "bloomberg west." ? welcome back to "bloomberg west." microsoft is pulling the plug on windows xp support tomorrow.
The most popular operating system ever.
More people use it now than any operating system presently but with no support.
A lot of atm's use it and they're worried about security issues because of this.
Tomorrow is the final security update for the operating system.
How big a security risk will this be?
Let's bring in the lab director at cyber security management company.
Who still uses xp?
15% of internet users are still using windows xp.
18% globally and 13 in the u.s. when you come to countries like china, more than 50% of users are still using windows xp.
I was reading data from microsoft outlook my mind.
In the last 10 years, in china, 70% of the users never supply and security update or windows xp.
The real threat we are facing is not that microsoft is ending support, it's about the laziness and stupidity of users.
Lazy and stupid users could suffer.
I have this image of hundreds of hackers in eastern europe getting extra rest and getting ready to attack because of the vulnerability.
They have been doing that for years.
They usually go for the low hanging fruit.
Microsoft is not updating the patches.
With atm's, could they hack the money out of atm's? thanks put in security measures and usually the atm's are not connected to the internet.
Who is most at risk?
Basically, users themselves and small and medium companies that don't have the resources to up eight -- upgrade to new security.
One thing we see is bigger attacks at bigger targets and ways we have not seen before.
Are we likely to see more of those because of this?
Is it that the people who are not up dating, the 15% of users are not going to be the targets.
Let's say we are making cyber crime -- we read the news that the government is going after people stealing financial information.
How much does it cost to upgrade?
You have to buy a new operating system.
That is the best case scenario.
If you are running all hardware, it is likely you will need a new version of microsoft windows.
Facing the average implementation for a company to upgrade is 15-18 months.
Yes, we have [indiscernible] if companies did not have enough time to update and upgrade the systems, that's several years for, probably they are not in a hurry.
Tomorrow they will be at risk.
We will monitor what happens tomorrow.
Thank you for being with us.
Tech companies play a big role in protecting your data, you can, too.
We will give you tips and tricks anyone can use to keep your identity safe online.
You can watch us on bloomberg television, streaming on your phone, your tablet, and bloomberg.com.
And on apple tv.
? welcome back to hope oh bloomberg west." -- since the nsa issues blew up, there have been a lot of questions about what we as average consumers can do to make ourselves more secure.
We decided to take a closer look.
The target and neiman marcus incidences shows what the risks are there in target is really really for the -- from this thing.
They are suffering serious business losses.
One of the biggest hacks in history.
Brian white is with us to give us some of his tips and tricks to stay secure while online.
Where does this start?
What is the easiest thing we can do?
It's great you're doing this.
Many of the problems we can solve but just having consumers take control.
I think about this as consumers understanding what the risk is and doing some rude and and necessary steps to secure themselves.
By doing that, they can sleep a little bit easier about the cyber risk they read about every day.
You say e-mail and passwords?
That's the hardest thing.
How do you do this?
I say you start with maybe your social media sites with one password and your banking sites with something else.
You have to go ahead and do upper and lower case letters and symbols and numbers.
Those have become, that we have to be honest that those are very hard for many people to remember.
Some are moving toward a phrase or word or sentence that you use the first letters of each sentence as your password with a couple of numbers at the end.
How many different password should we have?
You should have at least three.
I would use one for maybe a media site reading the news and maybe for my social media sites which i am concerned about my most secure password i would put on my banking sites.
In terms of using these, as people start to pick those sites, it is going to the strange and unusual site that starts to involve download software that gets funkier.
Now you are hitting another issue.
When you look at downloads, it is presumed you are guilty.
You should presume you should not click on it and download it.
How do you figure that out?
You need to think about why someone sent you something.
You can download that if it is reliable.
If anything is suspicious, it's easy to copy that link and put it into your browser.
If the browser comes up -- oftentimes, there is something in the middle and they can click through it.
The link might say yahoo!.com and you click on it take you to an eastern european download site?
Exactly, that is happening increasingly on social media sites.
Linked in and twitter because we are using those sites so often.
They do something to the actual address and you click on it and all of a sudden, you have malware on your machine.
Let's talk about browsers.
What browsers should we use?
I think google chrome is considered by most to be them most secure.
Then you see firefox and internet explorer being number two and number three.
Pc magazine had an article where they said it is hard to tell the difference between all of them right now.
What is important is making sure you are taking the updates.
What makes chrome better?
It is a more stable platform and was built on open source code and has the ability to incorporate more security features and protocols, even how it opens pdf documents.
It is important you have to make sure you do the upgrades.
When you see the updates come across your desktop or on your phone, hit that update.
If you are using an outdated version like enter , those are not secure.
Which sites are most secure?
There is a difference between attps and attp?
Https is becoming the de facto standard.
It actually enables encryption between the browser and the other browser.
This is important in that that data as it moves is encrypted.
That is something you see on banking sites and that has been adopted elsewhere.
Make sure when you are on sites, https and if you don't see that, be reticent about what you do online.
We are an amazing day when windows xp will being supportive but 18% of all world businesses done on windows xp.
I wonder what are the best actresses for a company to make sure they are not exposing -- i wonder what are the best practices for a company to make sure they are not exposing themselves.
How can they be reasonable about security?
You have to think about how the network is architected and segment individuals.
You have to assume your employees will hit those sites.
Let's be concerned about what is leaving the network and make sure the browser you deploy and how you push software is always up-to-date.
It's your responsibility as the administrator to make sure the employees are using up-to-date software.
What about your phone?
Do you get the updates on your phone?
If you are on mobile, what other additional steps can you take?
Make sure you have a pin # and you can lock the device.
Make sure you go ahead and put on your geo location even that -- even though that may drain the battery.
You can erase the device if you lose it.
The most important thing is don't download applications directly from the site.
Move through the application store.
Whether it is the apple store or android store, those app stores are developed to look at each application and see if there is any bad code in those apps.
Interesting, thanks so much.
Security 101, it's amazing how many people don't do these things.
It is simple and obvious steps, thank you, ryan white.
Still ahead, we'll sit down with nancy tellem, former president of cbs and now president of xbox entertainment to talk about microsoft push into original programming and you can watch us on on bloomberg television, streaming on your phone, your tablet, and bloomberg.com.
? bloomberg television is "on the markets." it's looking like the friday selloff is caring into monday afternoon and the nasdaq is seeing the heaviest selling as big names in tech and consumer discretionary and biotech stocks are being dumped.
A couple of individual movers -- the solar company backed by blackrock is dropping its solar power project in india and those shares are down nine percent.
It was canceled due to local equipment shortages and high prices.
We will be "on the markets" again in 30 minutes.
This text has been automatically generated. It may not be 100% accurate.