google definitely will. it sounded like dick costolo said no moon shots that twitter, just focusing on the core. >> you tried oculus? >> i did. i thought it was extremely cool. i have never used it before, which i was embarrassed to admit, and it really is extraordinarily immersive. it's way down the road that it will make a difference for facebook, but it is cool cool. >> david kirkpatrick, jon erlichman, thank you all for watching this edition of "bloomberg west." we will see you tomorrow. ♪ >> welcome to "lunch money" where we tie together the best business stories. intech, twitter tumbles. user growth slides and photos the stock. the ceo of script says it is simple, the online tv service is stealing. walk this way. how chief executives take care of business on the go. bridget moynahan living on $1.25 per day. she will explain why. in mobile, which makes the best wine? our answers coming up.

he was director of product for google maps. you have a great consumer, what everyone would agree is a atderful consumer product scale on the ios and android platforms. daniel has been the ceo of a startup. i love the entrepreneurial spirit. what you will see is dana ali and tied to implement the strategy we have already laid out and bring the entrepreneurial spirit to the team and probably come up with a bunch of his own ideas. >> when you talk about getting users engaged, a lot of twitter is one way communication. to be fully engaged, you have to tweet. >> the majority of active users on twitter tweet. there have been some strange third-party reports that have gotten that wrong. the majority of active users tweet. we scale and continue to grow. users 14 million net new in the first quarter, it will likely be the case that more of those users will come to the .latform and be consumers we make no distinction as to whether someone does or does not have too tweet, nor do our marketers. it makes no difference whether they are consu

monetization of computers by apple, the democratization of computers by ebay, and then with google. company im ceo of, we are trying to democratize design. that horse is out of the barn. it is going to continue. there is nothing we can do to stop that. >> being a chief evangelist at are notfter that, there many places to go. it is not easy to top that. is inhose this because it the business of democratizing design. it is making it possible so you do not have to buy expensive hard to use software or to be a designer to create your own graphics. i had a wonderful time trying to democratize computing with apple, and this is the second time i have been a chief evangelist in my career, and we want to change the world. we want to make it so that people who could not make graphics before can now do this, and this is a huge, huge opportunity. it is also a huge challenge, but it is a very enchanting challenge. >> so any startups out there on your radar? things that are all the rage? keep is almost too hard to track of anymore, because as i said, it is so easy to start a company, and if you a

democratization of information by google. democratizeg to design. this whole thing, that horses out of the barn and will continue. there is nothing we can do to stop that. being achieved evangelist at apple, not a lot of places you can go. not easy to talk that. because itanva is in the business of democratizing design. do you do not have to buy expensive software to create your own graphics. i had a wonderful time to try to democratize computing with apple. the second time i have been achieved evangelist in my career. we want to make it so that people who could not use graphics before can now do this. that is a huge opportunity and a huge challenge but a very enchanting challenge. >> any of the startups on your ?adar caps on >> it is a most too hard to keep track of. if you are in silicon valley they are popping like how corn all the time. basically everything you ever wanted to do, probably somebody else has wanted to do it, too. that is a very good development. andlook at these apps ,ocial media and you say wow that is something i just wanted to

i just got my own google glass. what do you think of google glass? this is the version with the glass frames. >> i used to -- i saw a robert brenner. he would google these headphones to get beyoncÉ. it's kind of like the position in technology matters. it would be much cooler than it is now. >> someone told me i was not allowed to wear them in public because i would be a social pariah. you are saying that it doesn't have to do with how it looks. >> it is how it is introduced. if beyoncÉ was wearing it, you would be wearing. how do we and culture technology? >> what about this? >> that is another example of you can't tell time with it. it doesn't display anything. it is a trend. >> that was john maeda. coming up, can you stop hackers from looking through the devices in your home. this will be our next installment of security 101. ♪ >> welcome back to the best of "bloomberg west." i am emily chang. new technology means new security threats. smart coffeemakers and washing machines are constantly collecting data about our habits. how can you be secur

google buzz, google wave, google friend connect, all three social efforts by google that flopped. is google plus next? 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 impact 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 search. 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 produ

google says this does not signal the end of google plus. a spokesperson telling us this has no impact on our strategy. michael kim joins us via skype from seattle. he worked at microsoft to launch the dot-net cut services and also brad stone with me in the who wrote a new story about google and facebook's fight to control the future of technology. brad, what happened here? is google plus dying? googlee are elements of plus the continued to be very important to google. , hangouts. those are growing products. there being more integrated into android. i think the identity aspects are being closely integrated in the search. the original promise of google plus as a social network did not work out. we all know that. perhaps from an acquisitive, vick is leaving after eight years at google. the promise that product had, which you really staked his name and reputation to, did not work out. >> you worked with them at microsoft. what kind of guy is he? t was similar anywhere trying to get information about people into the cloud, right? >> yes, i had a

google news. but i don't think that people feel like they are getting a voice that they would get on, let's say, bloomberg, or any of the news channel. at the end of the day, you need a human being who will do the final curration and describe a story. there are the facts and then there are someone's feelings about the facts and how they talk about the story. that is what happens at that final level of curation. the kind of view that as the machine is figuring out all of the stories that are useful and valuable. and then the editor is making the final call in reflecting the voice of the news outlet. >> and just in our last 10 seconds, when it comes to stories on, let's say, sports or celebrities, what do you find the greatest amount of content being generated and then ultimately making its way onto television, where is that coming from? >> that is hard to answer. if you think of breaking news that is happening all the time everywhere, sports is the same and entertainment is the same. honestly, they

i think there is a side story were apple and google -- google change things up with the different share classes. apple is intensely competitive with google. in some ways, they are trying to juice up some of the returns. i could understand why someone would say this is un-apple like. i like the fact that tim cook is being aggressive in doing something like this. >> we do know that tim cook had a meeting with carl icahn. icahn backed down. he said that he agreed with apple's increased buyback and extremely pleased with the results. many analysts failed to understand the company. cory, i know you'll agree with the last part of the statement. do you think icahn knows more about the products that are coming than the rest of us? >> to back down or stop rattling his saber, his holding in the company. i think that is the point. is it un-apple like to not be a growth company? yeah. it is un-apple like to split the stock, going through a buyback. the increase in the buyback is the size of 3m. it is an incredible amount of it is a different kind of company than it has been in the past. >> we are g

what does google have an stake? an attack on android, i should say. >> google has had this huge proxy battle all over the world. it has been dealing with. and google wants to see android protected and stay safe. it dominates the world. it has beat back the iphone. obviously apple is not going to go down without a fight and so google wants to win every battle it can and this is an important one. >> what is the next phase of this? >> that is the big question. some say no matter what happens it is a pr battle. apple wants to show we are the good guys. i think no matter what happens, it is going to be even more interesting because we've got a billion dollars or so from samsung in the first trial. if they get close to what they are getting, that would be really interesting. we do not know yet. it is very early. this could be big. >> we will continue to follow it closely. thanks so much. amazon prime subscribers consumed a binge watch episodes of "the sopranos." received jail to stream select tv show starting may 21. jon

airbnb takes aim at google fiber. the phone giant lands to expand its high-speed internet to 100 communities, including 21 major cities. at&t wants to deliver the internet at speeds 100 times faster than standard web access. first, to our lead story of the day. it will soon cost more than $7.99 a month for netflix subscribers to watch originals like "house of cards." they will start charging new users one dollar or two dollars a month as netflix reported a big first quarter revenue, revenue of $1.72 million. profit soared to more than $53 million. netflix added 4 million subscribers, including 1.70 5 million international members. we have a roundtable to discuss all stop jon erlichman is here as well as chris edwards, who covers netflix for bloomberg news. the price raises the biggest deal. one or two dollars, what is it going to be? >> like they say it depends on the territory. they say they are raising it across the world for new subscribers. it will really depend on the market. they have not said what's going to ha

also, things like google glass. we have profiled students at usc who are now, as part of their curriculum, trying to see what is possible, what kinds of different projects they can launch that would be using something like google glass. there is a lot of opportunity out there. we are going to focus on those various things over the course of the week. >> let us compare that with the changes in the movie watching experience. >> a lot of filmmakers and producers will say, the end of the day, it is about good stories. that is true. but there is no doubt that new technology and new platforms allows for the story to change in some ways. we talk so much about netflix. we talk about binge watching. there are great examples and some of the shows that have been successful on those platforms being successful because people can gobble them up all at once. tot is being factored in future productions that are taking place. that is definitely a big theme. >> when it comes to movie financing, things like kickstarter have had some i

and companies like google that are not based in san francisco? >> they have the same responsibility that bg&e has. the same that wells fargo or bank of america has -- every aspect that people who produce would have. they need to give back and participate and have their employees live here. they need to pay them a good wage so they can live here. that is what they need to do. >> former mayor willie brown, thank you for stopping by and sharing your point of view. we appreciate having you here. we will be back with more, talking about disney next. ♪ >> look back to "bloomberg west." i am emily chang. disney is on a roll at the box office with films like "captain america" and "frozen." for one of the biggest drivers remained espn. they had investor day today and jon erlichman me now with more from l.a. give us a sense how important espn is to disney. it is like the crown jewel. >> it is. it is amazing. there's a lot to disney, with films, parks, products. when you look at the numbers, espn and the cable networks really blow everything else away. re

do these trends hurt google more than facebook? >> i think google is in a tough spot. they have a gigantic cash machine in search. they have really done well. investors believe in that strength. they have to keep that running and keep that printing money, and at the same time transition to an entirely new way of advertising and helping users buy and sell things. that is really hard for big, slower companies. younger startups are basically able to move much faster. google will be challenged in the next years to really continue the growth it has had. >> google has made a big acquisitions, facebook has also with oculus, and a drone company, google buying a drone company, a lot of robotics companies. paul, are the moon-shots and acquisitions hurting google's bottom line? >> when google became public, they said, listen, a certain percentage of our expenditures both and operating expenses will be for moon-shots. we will have speculative investments. larry, sergey brin have said that from the day one. some of these will pan out, some will not. google, it is part of their stra

google stock is down in after-hours. is the chairman of ad exchange, and paul, your immediate reaction, cost per clicks are down, but clicks are up. is this all because of mobile? >> it is. google, like most other companies come is trying to manage his business from the desktop to the mobile environment. as the usage moves to mobile, two things happen. number one, the actual usage of the site goes up. as you mentioned, clicks were up 26% at google. the flipside of the coin is advertising pricing on mobile devices comes at a lower price point than the desktop. in the case of google, the cost per click pricing was down nine percent. of mediaike a lot companies, needs to manage the pricing on the ads versus the actual number of ads themselves. >> how serious is this? doesn't matter that cost per click is going down? >> it is relatively serious for google. to keep in place the growth, they need to start winning in mobile. it will take a real serious effort for them to put in place the technology and the people and things tha

google most obviously. that is what gave you anything that gives more and more people easily on the internet is good for these companies. that is the point of view. >> ben, how do you think google thinks about this? are they trying to help each other or are they actually competing? >> i think they pretty much are competing but with the same reason. as mark said, these are free services, anyone who gets a broadband instead of soul internet, theyw end up using google and facebook more than anything else, and google and facebook make a lot of money. so to give you a sense and developed companies, facebook makes about $12 per person per year. in developing countries, it is --bably $2 or $ but or $3, but that is a lot of money. >> and google earnings after the bell, what do you expect? >> in line with the street, so 20% year-over-year revenue consecutive or 16th quarter. that is google. i think we are in for about $6.40 in earnings roughly close to consensus. we think those numbers are achievable. people visit t

>> google wants what it gets sometimes, and he got this. google is coming in later now for this. google has a lot of users. it has to get more. it has to find more places to advertise so we will do whatever it can to get these kinds of companies to get access to all the folks all over the world so it can show more ads and sell services. >> the goal according to google and facebook is to bring internet access to everyone. are these unmanned aircraft in use anywhere for this purpose on a large scale? or has this not actually happened yet? >> it has not actually happened yet. we did stuff like this when we worked with the army. as far as commercial ventures and widespread use, not so much. >> brian, how do we even know this technology is actually going to come to fruition? is it too early? >> that is a big question. i think our guest knows more than this than i do. who will take the moon shots. they will spend the money and get the smartest people together. facebook is doing this sort of effort as well and it is not just ringing and other people from nasa to other places. they need

google and facebook said they are not vulnerable. what we don't know is if they were vulnerable before it was fixed or if they were never vulnerable in the first place. a lot of large organizations like banks were never vulnerable because they don't use opened ssl. there's a wide range of web companies that were either vulnerable before and have been fixed or were never vulnerable in the first place. we just don't know the answer. >> its interesting to me that the most threatening thing of all was the ability to see into any computer's ram. >> right, let me take a step back. i would not say that banks were not vulnerable, because you have to understand that ssl not only used on websites, but vpn and e-mail. atms, all of these used ssl. the question is, were they using a vulnerable version of that. to say that the fix has been put out, the fix has been put out by the open ssl foundation. in fact, i was on a flight last night. i was compiling at 10 p.m. to get your question, yes, you are actually looking at arbitrary data in the workin

>> the way android works, except for google own devices is if you have a samsung phone, google puts out a pass for android, samsung is responsible or your wireless carrier is responsible or posting that to you. >> -- for pushing that to you. let's imagine that my phone got hacked and i have a samsung phone that did not get an update, our samsung and verizon going to be on the hook for losses? >> is an interesting question. google was asked about updating their own services. this is the weak link. it's harder to attack a phone versus a website. you have to do it one by one but it means that samsung and verizon and at&t are the ones responsible for fixing these devices. >> what about the cisco juniper? >> these are the guys whose equipment are the guts of the internet. the things go wrong with devices, those need to be fixed quickly. >> how do you fix them? >> you have to apply a patch and it is a similar situation. you have to do the patches one by one. one person has to download the patch for a device or one router owner to download the patch for his or her router so it takes longer eve

>> the tax break and the protesting against google buses. protesting twitter in a week. yes. exactly. in the united states. again, i have left day to day operations so i do not have authority to speak on what twitter's responsibility is, that i am starting to look into this now. just personally. get involved with various tech industries. in a boom time when so many jobs are created, there is so much and if it is not, what can we do to fix that? solution.a weekend a lot of people have to get together and think long-term about how to make it work. it seems to me there has to be a way to solve the puzzle. questions from the jelly verse. -- responsess within seconds. argan asks when will you merge jelly with twitter? >> it is our it he working with twitter. we work with twitter and facebook. we blend the networks together and that is one way we can your answers. will youe is asking ever sell? >> jelly is the company we are trying to build and work on for the next several decades. this is what i am doing now. there is no sell date. >> what our current use cases, and what do you en

does not have the google place door. in typical amazon fashion, they're creating their own parity bill custodio -- they build their own studio. look, hard-core gamers want to play hard-core games. they don't want to play -- they want to play bio shock, not mine craft. >> whether it is on gaming or something like imdb, which is a place where you find everything about actors in the entertainment business these days. jeff bezos made a big push on the idea when you're watching films or finding out who the actors to imdb, i don't know necessarily of people are using those services in a big way. >> bezos wasn't there today. would he think about that? >> they presented him these things every month. it wasn't even dave limp that handles all the events. it was pete larson. it is not going to get the attention that the kindle fire and the kindle e-readers have gotten in terms of big promotional holiday time launchers. >> what about the apple closed ecosystem versus this android open ecosystem. how big a difference does that make.

the new ticker for google plus. googl. the four-letter ticker goog is used for class c stock. class b shares controlled by page and schmidt. those shares still get 10 more votes. that is the format for the stock. >> we spoke with mike judge that created the show. we will see that tomorrow, right? looking forward to it. we will see you later. ♪ the following is a paid program. works the following is a paid advertisement for scalp med. officer.elevision stay tuned and find out how you can find the system -- try the system for $29 $.95. try it for $2995. details ahead. >> does scalp med work?

the new ticker for google plus. googl. the four-letter ticker goog is used for class c stock. class b shares controlled by page and schmidt. those shares still get 10 more votes. that is the format for the stock. >> we spoke with mike judge that created the show. we will see that tomorrow, right it --> looking forward to right? picks for watching, we will see you later. ♪ . >> welcome to "lunch money." i am adam johnson. in tech, it is all about the launch. they are bringing new products and new competition. and movie producers ron howard and brian grazer trying to make video for the digital generation. by the way, they are short videos for short attention spans. we have heard about high-frequency traders, but how do you write a best seller? and lands for reinventing the modern corporation.

, google, facebook. >> here this -- bit soup. like alphabet soup, but ones and zeros instead of letters. , which iss you cringe something judges and brilliant at. the cringe. funny.as pretty >> kudos to mike judge. he had to have had an internship at google. >> who is going to watch episode two? >> i'm all over it will stop >> i'm in. >> it was good. i think it was better than all of us expected. i don't watch much tv. funny and very true, but i thought it also -- i think it's the kind of thing people in silicon valley like to watch. >> it's time for the bwest byte, where we focus on one number that tells us a whole lot. >> how about the number five? that's the new ticker for google's class a share. the dreaded five letter ticket -- ticker right now. the old ticker is used for a new form of stock. what about the class the shares? those shares don't trade. those shares still get 10 more votes and that's a format for the stock and a lot of new ideas will follow. >> the real eric schmidt who made a cameo in "silicon valley." and we