"bloomberg west you are watching -- you are watching "bloomberg west." i'm emily chang.
Russell simmons helped hip-hop artist break into the mainstream and he has since founded a business empire with everything from movies to music to clothing.
His newest venture is helping new artists achieve success in the digital world and beyond.
I am joined more -- four more from l.a. by russell simmons and a partner at great cost hundreds -- great cost -- great cross partners.
Russell, what are you going to do with the money?
We want to find important content.
We have a lot of young directors, writers, comedians, poet, and people that need exposure, and with the partnership with the music company we are putting out one record week with samsung.
So, the money -- we do not need the money.
The brilliance we need.
We do not need the $5 million.
We need the brilliance.
Looking at the executive pool, these guys know it.
The partners they need, they know the answers.
I have known these guys for a very long time.
Alan patrick off is like my godfather or something.
I am happy to have them because of their brilliance and helping to find great content and create content that will be different from, special to the marketplace, and make a difference.
Let's talk about the brilliance, because greycroft was an investor in maker studios, which disney recently bought.
I know you said that mark knows where the revolution in video is going.
Mark, where is the revolution in video going?
It is interesting.
The younger demographic -- a study by "variety" showed the top five, you know, recalled stars in the world for kids between 13 and 18 are all youtube stars, and that is replace traditional actors, celebrities, and musicians, so when russell explains his vision of trying to use these new platforms for short form video to honor amazing new talent that has not been -- to unearth amazing new talent that is not the discovered, with the ability to create platforms around them and travel the talent from initial platforms into movies, record labels, and television shows, what have you, it was a marriage that was too good to be true.
I had a funny revelation when kanye west said george bush did not like black people.
Hollywood is such -- so segregated.
We had a revolution with jamie foxx, bernie mac -- all of the stars emerged that one moment because there was an integration process, but since then no one, except for some of the older deaf comedy jam guys have emerged.
Youtube is a place where they can emerge despite the lack of sensibility or creativity in hollywood.
I am getting the chance to say yes instead of asking an executive to say yes, and that for me is a process that is exciting.
There are so many young talents that have not gotten a break yet, and hollywood, although it is one of the most aggressive and sweet places in the world, they live in fear, so they have not been a good job of innovation.
The girl on "scandal" was the first black girl toledo show since "julia." you are -- you were not born.
There is a giant space.
Is this musical content as well?
Yes, we have records right now.
Every week we are putting out a record.
Every week is a different release schedule than we would have seen in any era.
What is it about the digital era that makes you want to do -- weekly releases?
Asked the content lay that we put together, this technology that lets artists -- the technology that we put together, the technology that lets artists upload music, and the things come to the top of the chart, and we curate from that.
These artists that have built themselves huge youtube following tour huge social media, and then they are ready for release, so we put the single out every single week, and a lot of them, some of them are becoming stars already.
What is really cool is not only the pace, but the platforms are global, so we are finding talent literally all over the world.
Historically, what people thought of as urban historically, is everybody.
It is global.
The girl they showing -- they are showing right now grew 600% in sales last week.
It has everything to do with the collaboration of all of these technology, especially youtube's support, and samsung.
I mention them eight times but they hope to fund this creative idea on all def digital.
Speaking of collaboration with stars, jay-z was at one time a president of the company you started.
We have been covering their tour . of course they are married, but you see other artist pairing up.
I wonder, is that kind of boring the only way -- touring the only way for artists to make big money these days?
They have 360 deals when they get pieces of everything artist do, but the real truth is thai reese is a movie star, and jay-z the business guy, there is a branding exercise -- i create a clothing industry.
There are a lot of ways to exploit emerging talent, especially if you are in the various kinds of music or areas where they want to exploit their celebrity.
That is what we do.
We are a media company that understands all kinds of media.
That is a very important point.
We have movies at different studios and many of the music artist desire to be in them, and that makes us a unique company.
You have got a lot of partnerships.
I remember one with cbs records that resulted in a food fight between run dmc and the beastie boys.
They are vegan now.
No more white castle.
[laughter] you have done so many deals.
You have not aged.
I'm wondering what you learned.
I have not aged at all.
I am wondering what you know now they did not know that -- then about doing deals?
I note is good to have smart people.
Greycroft is a smart team.
They have given us great advice and that is live hoping for, more great advice, direction.
I have creative ideas.
I want to know how to best focus them.
Having these partners makes all the difference in the world and that is a goal of mine.
All right, russell simmons, cofounder of all def digital and mark terbeek, thank you for joining us.
We will keep our eye on you guys.
Coming up, competition heating up as companies announce a new car pooling feature.
Lift's president joins us to tell us how it works.
? i'm emily chang, and this is "bloomberg west." carpooling has gone digital.
Has -- lyft has launched lift line, giving people the chance to share a ride with strangers.
Rival uber launched a similar feature.
So, how can carpooling help lyft in its battle with uber?
Lyft president john zimmer joined in the studio.
How will this work, how will you coordinate people who need rides?
Quickly found out 90% of lyft rides have someone going in the same direction in five minutes, so we are matching them up and saving users up to 60%. uber is testing out something similar later this month.
How is it going to be different?
It is flattering to see others follow when we are innovating in the space, but the thing we have created is a sense of community and culture with sharing within lyft, and it fits well in the new product line, and it is true from our vision from the beginning, where we were doing long distance ride sharing and carpooling, and now we have come full circle with lyft line.
You can save up to 60%, but what if no one else is taking a ride in that direction?
We will still give you a discount.
So if you say i agree to allow someone in this car with me, you still get a discount.
Why won't everyone started doing that?
We hope everyone does.
It will be the best way to get around.
We are combining of transportation with on-demand rides to create personal transit at your doorstep, and it is really enticing for users.
We have seen already hundreds, and today we will cross thousands of rides on lyft line.
We have a lot of lyft users, fans on our team, but there was a little bit of -- what if i get into an uncomfortable situation -- how do you handle that?
People have those questions when we started lyft at the beginning, and we have created this incredible expanse where you have screening of front of both drivers and passengers that create accounts and have profiles.
It has worked out well.
We have done over 10 million rides on the platform.
We have over 60,000 drivers on the platform, more than fedex has vehicles, some people want this service, they are using it in large amounts, and the social peace, as long as you design for a safe and convenient experience, it works out.
So, writers pay less, drivers get more, but fewer drivers are needed.
How does it work from a supply and demand perspective?
At our peak times, the commute, in the mornings and evenings, it is nearly impossible to get enough drivers to serve those needs.
Also, when you create a five dollar ride, a seven dollar ride, wherever you need to go, that increases demand, so lyft is about creating your daily ride.
When you create at a five dollar rise point, people start getting rid of their cars.
A story that has been told previously is that what we are doing in this $11 billion u.s. taxi and limousine market, all competitors are taxi, limousines, and uber, but we are going after the consumer transportation market, a $1 trillion market in the united states.
95% of which is what people spend on their personal vehicles.
Tell us what is going on with the challenges and compromises with regulators.
Some people say it is not really lyft if you take out the fun stuff, and others have complained you cannot get a ride, there are not drivers available.
We are seeing incredible demand in new york city.
Is that because there is no supply?
It is our third highest, and we have only been inactive for two weeks.
Chicago, which has been live for over a year, has not seen as much a man.
We have created a new product that we are calling lyft pro, and that is because regulators said it had to be this way.
We are working on bringing.
-- bringing pere -- peer- to-peer.
Some of these people might already be driving for taxis or uber.
There were 1000 people lined up outside of our office, some people want the opportunity, and we scaled up really fast.
We will be watching.
John zimmer joining us here on bloomberg -- on "bloomberg west ." lawsuits, less than impressive earnings, and deal rejections -- we look at three tech companies having a bad week next "bloomberg west." -- next on "bloomberg west." ? welcome back to "bloomberg west." i am emily chang.
Hoodies and free food aside, it is not all fun and games, and cheezburger network's ben huh joins me.
Three tech companies having a bad week, what are they?
Linkedin is having a terrible week because they did not do accounting properly, did not treat employees, did not pay overtime, now they have to pay fines and back wages.
$6 million in unpaid overtime damages.
Is one of those things where the money is not as bad as the credibility.
They were known as a professional company, a company about being a great professional, and they have come to the realization that they owed these wages, it was probably reported by the employees, a loss of trust.
There was a department of labor investigation over this, but linked again -- blinged thing said -- but linkedin said they were going to pay them anyway.
You realize it is going to get out of there, we need to get ahead of it.
Companies of sql usually do not do this in a malicious way.
It is not a small business that cannot afford to pay you.
It is a company that had systemic errors in the process.
It is not a personal thing.
I also wonder why it went public.
Employees who usually have an argument with a company where they decide if a company is not moving fast enough any to make it public disclosure to an agency -- make it public disclosure to an agency that oversees wages and labor.
Tracking companies having a bad week -- groupon.
Groupon is having a terrible week, not because it did anything bad, but they are moving too slowly.
They need to transition from coupons to actually having to do pre-commerce.
They are renting a market in which they used to be first, coupons online, to a market where they have intense competitors like amazon, and they have to learn that expertise in one year that amazon has been doing in 20. you wonder if that is the right strategy.
You see so much weeding out of the small and medium-sized players, and it is really tough to beat amazon.
I do not know if they have the many options.
They have made a lot of acquisitions and they're probably having some indigestion figuring out how to scale them and integrate them because the benefits of having a large e-commerce business is not materialized and they have not scaled up the business, but the coupon business is still good.
They have enough success thereto from their investment.
I think they will need to continue to does for the next five years.
Do you use groupon?
Really, for what?
If you're going to do something anyway, or if you're going to buy a steak, you go to a merchant that will give you a better deal.
I like deals, but i thought the deals were not that great, so i stopped subscribing.
Some deals are great, and the budget that you do not care about.
Number three, 21st century fox, having a bad week.
Time warner on the other hand -- there is a little bit of nuance.
One side is having a good week, one side is not.
It is a self filling prophecy where prices drop within a position, and it makes the acquisition more expensive.
Right now, the problem here is that fox is doing the inflating by creating a deal their shareholders do not like.
Checking out the stock, fox it went way down, then went back up after they withdrew the bid, but time warner also plummeted.
And the largest increase after the new ceo took over and they have lost that.
You run a media company.
Where is that in addition -- innovation in media to be had much my it is in two places, premium and mobile.
At cheezburger network, we are majority mobile.
All those cats are on mobile.
All those cats are on mobile.
Given the last time you had coffee before you had a smartphone?
What do you do when you are in the line?
We played during those times were reason to start off into space.
What happens in the basket?
It seems everyone think stick and started new content site.
Sure, why not?
It is really cheap.
The barrier to entry is zero, it is creating more power because the market is more fragmented.
You he a diversion between the sugars and content creators.
Cheezburger network ceo ben huh.
Great to have you back on the show.
You made memes mainstream.
It is now time for the one number that tells a whole lot.
Cory johnson, you have the number for us today.
What do you have?
Backs 35,000 -- how about 35,000? x oami sold 35,000 phones.
They still want to see global smartphone sales go from 20 million last year to $100 million -- 100 million next year.
We talk about the mobile phone market in china.
It is the largest mobile market in the world, but india is such a huge untapped market, even by companies as big as apple.
Yeah, and you know, the issue for more premium smartphone makers like samsung and apple in markets like india and china, the phones are sold without subsidies.
We are accustomed to paying 190 nine dollars for a phone and signing a contract.
That does not happen there.
The xiaomi phones are much more affordable, but it is still a lot of money in india.
India, the next mobile frontier.
Cory johnson, our editor at large.
Thank you for watching.
And thank you for watching this edition of "bloomberg west." you can get all of the latest headlines on your phone, tablet, bloomberg.com, and bloomberg radio.
We will see you later.
This text has been automatically generated. It may not be 100% accurate.