>> 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

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

>> 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

and google are set to report this week. will the numbers be good or not some good question -- not so good? from new york, paul, let's start out with google. what are the big trends you are watching? >> the market is looking for continued good results. the big technology selloff over the last couple of weeks, google has hung in there quite well. stocks down one percent or two percent, year to date. partners respect the fact that the core business continues to topline revenue growth. tension on the markets as they continue to invest in new business and pose strong topline to bottom-line numbers. >> on the other hand, yahoo! is down almost 17%. they were hit particularly hard in the latest selloff. what are you looking at when it comes to yahoo!? have some new information about original content and original programming that they are making a push on. how do investors feel about that? >> there are two things here. first and foremost, the value of their investment in alibaba, which will presumably become public this year, reflec

google is putting google glass on sale for the general public for one day only. it costs $1500 for access to the program. it is available only to adults living in the united states. google has a patent application pending. i sat down with a partner at xl partners. how optimistic are you that google glass will go mainstream? >> glass is still in beta. when you talk about it at this point, it is still intimidating to developers who want to develop applications. the reality is that you try the product and you read the reviews. it will be a while before it becomes mass market. it is interesting to those of us who live in the valley. it is a while before the mainstream will adopt google glass as a product. >> someone from coastal ventures told me that it has zero chance of going mainstream. >> it is too early to predict. when google bought android in 2005, everyone thought that the idea of google moving into mobile was not good. no one thought that an american company would become a major player in operating systems. if you look back nine years, google executed that i

google putting google glass on sale to the general public today. plus tax for00 access to the explorer program, the same price that developers pay. it is available only to adults living in the united states. this, as they have a patent application pending for tiny cameras in bedded and contact lenses. for more, i bring in a partner at excel partners. hosting a fireside chat with the cofounder of secret, today invite only conference. bringing together the top 180 executives in mobile. earlier executives and facebook. many mobile hits. good to see you. always great to have you here. talking about google glass. thatptimistic are you something like this can go mainstream? isthe way it goes mainstream. glass is still beta at this point. it is still very much intended for developers. i think the reality is you try the product. probably going to be a while before it comes a mass architect. perhaps interesting to those of us who live in the valley. i think it will be a while before main street really adopted in a broad street way. >> zero chance of google

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 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 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

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

google made google glass for sale to the general public this week, but for one day only. it cost $1800 for axis to the program -- $1500 for axis to the program. we sat down to talk about who will could go mainstream. >> who will is still in beta at this point of and we talk about a $1500 price point it is still very much intended toward developers to experiment on applications. the reality is if you try the product, and he read the reviews it's probably going to be a while before becomes a mass-market hit. it is perhaps interesting to those of us who live here in the valley, we welcome new technology, but it will be a while before mainstream advice this in a broadscale way. >> i was told zero chance of having it going mainstream? >> it is too early to predict that. i would not make that prediction myself. when we saw the google by android in 2005, we saw them winning the -- put the operating system and everything of and without they were not spread into that google has executed incredibly well, so i would not count him out at this point. greg said terms of wearables in ge

marketing, mostly dollars going to google, but compete with google. we will talk to priceline group ceo next. ♪ ♪ >> welcome back to "the best of bloomberg west." i am emily chang. online travel is a crowded, competitive space. it is priceline's revenue that makes it the largest such company in the world. i spoke with priceline's group ceo darren huston. booking on mobile. >> we are investing very heavily in mobile. just to give you an example, we did $1 billion a looking's on mobile. 2012, $3 billion. billion booking on mobile. it is a very important channel for us in terms of acquiring new customers. it is also a critical part of the end to end experience. now that people are using tablets, mobile phones and other electronic devices along the whole journey, is giving us a great opportunity to enhance our product for our users. >> are you specifying for mobile apps? >> all five companies have apps for the ios platform as well as for android. we continue to evolve those products. they all have very high ratings from consumers. we have a ton of tra

most of it went to google. is that a strategy you expect to we have great websites and they convert tremendously well. we continue to look to google as well as two other source of is kayak orher it trip advisor. there are other places where we go and buy our demand. we continue to buy from most channels as long as the returns are there. we are seeing that our returns on all the channels are great. the day we would love our customers to be more direct. we use google and other sources of demand to find customers and show them how wonderful our products are. >> google is making more aggressive moves in your territory. obviously, they bought ita. how big a competitor g you expect them to be going forward? as angle respects us advertiser. they rely to get more of my money. codeecent acquisition of from room 77, that is not the biggest thing that has happened. google has been working on hotel price as for years. they want to continue to make that better. i think the biggest issue we face competitively is not google,

you have streaming devices with google and roku. then you have the smart tvs from others and those seem to be from three different camps i wonder if one will emerge. does this help you get around the issues raised by a comcast time warner merger where you will have someone decide what service you get fast and what you don't. >> it's a great question. the first part is that i do think it is true that game consoles clearly survey slightly different audience than a streaming player or a smart tv. it is someone whose primary purpose for purchasing the device is a game or playing games. the prices higher. you do not see a $100 console. video is important but it's an adjunct to the gaming experience. take a streaming player and video is the first thing that people are looking to. the audience, the demographic, they're looking to either pull back on cable subscription or augment service with on-demand services and it's a slightly different market going out and buying these products and the price ranges from $35 to chromecast to $99 for ama

ofhave complete analysis amazon's big announcement tv,aling amazon fire stepping up the competition with google and netflix and more. first, a check on your top headlines. blackberry will no longer allowed t-mobile to sell its phones with its current contract expires on april 25. in a statement, t-mobile says blackberry business strategies are not complementary. urgedn february, the ceo users to switch over to the iphone. has hold up more than half of her stake in the social networking company. she sold 26 million of her 41 million shares since facebook went public in may 2012. some of the sales were to settle tax bills. china forooking to business opportunities. the chipmaker just announced a one hundred million dollar fund in china to try to get intel chips into more chinese made computers and mobile devices. they are also setting up an innovation center near many of the factories where the devices are made. first to our lead story of the day, a special show on amazon, a big unveiling in new york city of fire tv. they had to get the word fire in there. significant. i hate covering product ann

amazon is taking on amazon and -- google and apple. the difference between all the competitors and you can watch a streaming on your phone, tablet, bloomberg.com, and fire tv. ♪ x you are watching "bloomberg west where a focus on technology and the future of business. amazon launched its new fire tv bringing them into even closer competition with the likes of apple and google. all three the tech giants now offer internet connected gadgets for streaming video to a tv and this also escalates its rivalry with netflix and other services delivering exclusive content. the big question is who will win the battle for your living room? joining us now is brad stone and the author of the book on amazon and our senior west coast correspondent jon erlichman. i know you have been working on this story for weeks if not months. what do you think now you have seen it officially unveiled? >> they have been thinking about a set top box since the end of 2011 so this has been a long journey. what are the big ideas going to be? how will raise the bar on a

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

aer ook, google also port eo. dish network, they have the technology very similar. dave wrote a brief in support of the company saying this is basically what we have, which is we allow people to get broadcast content in whatever way they want. they can record it. essentially new technology doing the same thing that a vcr used to do. down for an exclusive interview with the ceo ahead of today's argument. is the a lot about what vcr never existed. what did he have to say in particular? >> it was interesting that he did not want to say anything. did not take any questions after court let out. he did sit down exclusively yesterday and said he was optimistic that he will win. he said the law is on his side. beenis whole thing has about making sure the consumer gets the signal. not about making a couple of guys rich. and we come. completely different technology. broadcastingsed in and antenna. none of them can dispute the facts because unfortunately in this case they do not have a way to dispute facts because the technology works the way it did. there is all this concocti

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

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

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

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 pirana. literally used the word. 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 enculturate 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. an expert gives his take in our next installment of security 101. ♪ >> welcome back to the best of "bloomberg west." i am emily chang. new technology means new security threats. sites push us to share more information more than ever before. smart

an update from google on its self-driving cars. the company says that cars have logged nearly 700,000 autonomous miles. google has been testing the cars around their hometown of mountainview, to improve their ability of driving in urban areas, but they say there are more problems to solve before the car starts driving in other cities. microsoft will begin rolling out its first original xbox tv shows in june, including a reality series called "every street united" which will cover local soccer teams, as well as coverage of the binary music festival. to our lead story. after the disclosure of the heartbleed glitch, there is another glitch affecting the internet explorer browser. this affects about 25% of browsers out there, looking at versions 6 through 11, although the most recent ones are mainly being hurt. the way it works, it gives the hacker the same level of access as the official user. people that still have microsoft xp, windows xp, are particularly troubled in this case. cory johnson, microsoft stopped providing security pat

now facebook, google, and amazon are pledging money. but will it be enough? ♪ welcome back to bloomberg "west." i'm emily chang. on wednesday i will be interviewing twitter ceo dick costolo. we will be talking about their efforts to attract more mainstream users, its new ad network, and much more. don't miss my interview with dick costolo coming up this wednesday. now to the security flaw exposed earlier this month, heartbleed. it has some tech giant coming together to fund improvements in open-source programs. cori, this is interesting. people tell me that all of these bugs could compromise the future of open source and whether it exists at all. >> it is an interesting story and not easy to say, heartbleed bug. heartbleed bug. the organization has a new innovation because of this heartbleed bug. the director of the linux foundation is now with me. open ssl has not received a lot of financial support like lennox, for example. >> that is right, atypical market failure. if you look at lennox, an important project that has received a lot of funding and is an i

market than twitter, which is still miniscule compared to facebook and google. do you see twitter commanding a greater share of that market? >> this is not a two-horse race now. you have linkedin and others. it is justifiable. i think they need to realize they have got a lot more competition out there, and their dollars are being spread around right now. it is coming. >> to my guests, thank you both comments, and don't forget, i will be having an interview tomorrow with dick costolo, the ceo of twitter. ♪ ♪ >> welcome back to "bloomberg west." i am emily chang. samsung is out with first-quarter earnings, sales gaining 2.3%, but profit fell 3%, $8.2 billion, and samsung posted its lowest sale in its mobile phone business in five quarters. cory johnson is with us in the studio, and brian blair is with us on the phone. so, brian, is this saturation, or is this competition? >> i think it is a little bit of both. we saw some of this last year, and i think things are slowing down in the smartphone market, but there definitely is a competitive aspect, because in ch

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

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

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?