pier three in san francisco, welcome to "the best of bloomberg west." i'm emily chang. we will bring you the top interviews with the power players of global technology and media players that are shaping our world. american broadcasting company versus the streaming start up ae these tiny -- to send

signals to subscribers. users receive the services privately. locations all over the united states. bloomberg's anchor betty liu was at the supreme court. i asked her what the feeling was like on the ground as both sides made their case. >> i saw an interesting dynamic layout. paul clement and david frederick came out and made their closing statements to the press. was a manowd, emily, ereo. i asked

barry, how do you think things went in the courtroom? he said, you know what? i think things went well. he listened in on the broadcasters and walked off. a lot of people thought that there he would perhaps just slid out the side door. he just couldn't help himself, emily. >> tell us who the players are. on one sidedcasters and the obama administration have come to their support. >> the department of justice came down in support of the broadcasters. reo side lots of silicon valley. dish networks. 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. it is essentially new technology doing the same old thing that a vcr used to do, emily. down for an exclusive interview ahead of today's arguments. never existed? what did he have to say about today in particular yak go >> it is interesting that chet did not want to say anything. he did not take questions after the court let out. optimistic, he was that he will win. the law is on his side. >> this whole thing has been about making sure the consumer gets the signal. in we come with a completely

different technology based in the roots of technology -- the roots of broadcasting. no one can dispute the facts. unfortunately, they can't dispute the facts. a concoction and false narratives being created that this is a copyright problem. it is a business model problem. the world is changing around these guys and they are reacting with what they know, which is litigate and kill new companies that come in because you're making far too much money and continue to make far too much money and have no incentive to change. >> can you understand, though, spending millions of dollars in programming that you are charging people eight dollars a month to access. that what you are

talking about is innovation they are saying is theft? >> here is the issue. if we don't apply this technology to a cable channel like hbo or whatever, there's a reason they're called free to air broadcast television. the central bargain with the consumer and congress is the programmer and public interest is free to the consumer. they make money, billions and billions, with advertisers. are people who use an antenna infringing on the copyright? no they are not. moneyese companies make by selling technology. >> but you are more than just an equipment provider, even if that equipment is in the cloud. you do want to be more than that

. >> the question is, what are we on a factual basis? >> let's say you get into original programming, let's say you develop your own channel, doesn't that change who you are? >> no. tivo is a great example. you can get a retail tivo box. you can plug an antenna into it. tivo will sell you on demand movies from the internet side-by-side. where is the copyright infringement? infringementight because it located a box and made it simpler for the consumer? kenojia is not backing down. how does this play out? nothing happens. it has been a long journey for both sides. for the court, it is going to be like any other case.

justices will retire to the chambers and discuss the case and vote on it, a tentative vote . at the end of june is when we are likely going to hear a .ecision on this case for more on this, i want to --ng in rich greenfield from a media and entertainment analyst. he was in the courtroom when all of this was playing out. rich, great to see you. tell me how you think things went. >> the overall case was very hotly decided. the bottom line was there was no clear one direction. this case you could tell there was fear among the justices on how you write this decision. if you were to say aereo was illegal, how you write this decision without impacting cloud technology? chief justice roberts went after

youplaintiffs attorney -- go to a public parking garage and you rent space for next amount of time. how's that different from when you go home and ill the garage? you're renting versus buying. as the key challenge the court is grappling with. is this simply the same thing as renting versus buying, or is there something special about broadcast television? questions.e a lot of were there any curveballs, rich? >> probably not. there was some concern when you think about what the overall impact could be on why this system is the way it is. said the onlyrg reason you're creating millions of individual copies to circumvent copyright law, i would not call that a curveball. they're pushing on why the system is built that way. it is only built to circumvent

copyright law? there with rich greenfield. just a note, bloomberg tv does have a distribution agreement o. a legendary designer is wearing a new hat is a venture capitalist. he joins me to talk design and tech next. ♪

chang and this is "the best of bloomberg west."

ms. legendary designer spent more than a decade as head of research at media lab. of the mosto one prominent art schools of the world. he is the first design partner to join intervention -- a venture capital firm. he joined us and i started asking him about his recent move into venture capital. is so amazing. the speed is so extraordinary, the people, the energy. it is intoxicating. i kept telling students, kobe like ryan and joe. i felt a little disingenuous that i wasn't going myself.

so why not, i thought. portfoliohelping companies, but you're are also sourcing new investments. >> i'm trying to understand the strategic value of design. formation, company ignition. early incubation. how to get design as early as possible into the process is something i have a lucky to get a chance to look at very closely. >> what are some big established tech hump buddies that you think are doing design well? >> it is important to note that doing design well is not something you get good at suddenly. if you're doing it for a long time, things work out well. people say apple design is great. you have to remember they have been doing it for 30 years. >> they have always been a design company. apple is one of the standards

that has done very well. . see ibm coming back >> really? >> they began with design in the 60's and had to revive it. i have gotten a chance to work with ebay closely. big companies. likehat small companies ecosystem startups. >> any startups you would call out that are doing a good job? >> definitely flip toward -- fli pboard. they're moving like a rocket. world'se one of the great interactive designers. he disappeared and went to this company. you need a great designer to do a great company. list of looking at a great companies now. it is interesting when you see bnb, youbay or an air

don't think of them as design companies. >> i love their website. that is not the point. joe and brian are industrial designers. they design physical things. i love the physical environment. and the the space physical environment. the website is an artifact of that. the website is a scaling mechanism for their sweet understanding of the physical environment. the design is all here, not on the web. >> what is the wrong way to go about design? who is doing design poorly? i never like to throw rotten apples at people. >> i figured you wouldn't. it is a bad way to go about it? the wrong way-- to go about it is very common. realize you forgot to make it palatable for people to use. so we'll sprayed on top. i will call it lipstick on the

pig. i never liked that. why does it happen? because technology was always a game changer. why would you care about design? design was something that was maybe pretty frivolous and never had a big impact. design has been a big problem too, how we talk about it. have a significant design, you have great technology. more think design is important than technology? >> no. technology is the most important thing. i went to m.i.t., too. i have to carry them both. i have schizophrenia. technology is the game changing chassis upon which a great human centric experience can happen. idea, it hasa good to be implemented. this area has to happen at scale. you get that from technology.

maeda there. like ebay ands apple find good designers? that is still ahead.

♪

>> welcome back to "the best of bloomberg west." tech companies need good design, but how do they find and attract aod designers? i spoke with company that helps other companies like square, find engineers and designers. i started by asking john maeda how he got into design from the beginning. >> when i was young i went to school one day to a parent, teacher conference. be goodi was going to at math and art. years later i went to m.i.t. and art school. >> you are still focused on the i want to bring in a

man from a recruiting firm. you know very acutely what the demand is for design talent. how competitive is it? >> is incredibly competitive. when you think about what a start up team used to be, it was an engineer and the business guy. what is it today? it is the engineer, the business guy, the designer. the thousands of startups all need one new person that they didn't used to think about. >> what makes a good designer? are they also a good engineer? is a good engineer also a good designer? >> the people who can do both are a unique species. they're the ones to find. also the ones that can do design and leading. companies that want to scale needed design leader better than a pixel person. >> what you mean by design leader? >> someone who loves people.

it is a rare thing. the people thing is kind of a pain. people who can graduate from the making to seeing, wow, i am in the world, design leaders are much more important. companies like facebook and square want? >> ultimately they are designed first companies. for them, the opportunity to find talent is huge. are facebook and square, the question is, how do you create an ecosystem to attract top talent? same thing with facebook. buterent five then square, a place where creative person will want to spend their days. thesework so hard to make environments to bring designers in, but that is assuming you know what the designer wants. designu do to find leaders, people who can manage the scale of a creative person's life?

>> a lot of it now is about inspiration, who'd i want to sign up to work for? at the end of the day, they are a rare breed. that is why you see large tech companies put a premium on wringing some to the table. inspired byers get these people. they want to work for these people. it is a fundamental shift in the way companies are doing business today. >> john, what do think about companies like apple wringing in rry and peoplebe from the fashion industry. ? >> i think that trend is more about the value of technology. you want that take. that is for a very mature company. the startups are looking for something more substantial. you

don't want to just be a fashion. you want great technology and great design. aboutn, what you think the fashion trend? >> when we used to buy watches, lease to buy them based on how well they told time. today, that is a byproduct, that is an afterthought. you buy it based on design. you by your genes based on design. every company is thinking about design in a new way. mit, in ato say to thousand designers i can find three that understand engineer. the same in reverse. >> i find a lot of designers picking up code. unfortunately, schools own -- schools don't teach

people with design how to do coding. >> how about trends in design? --rts -- there is a whole john, what are you explain what the difference is and what is better? versus schemorphic debate -- when things are complex we get simple. when things are simple we get tired and go complex. .e had too much texture let's remove it. i guarantee you five years from now we will be back with textures. than the other? >> no, but it is better because it makes you feel something. as beautiful dress you're how you do something

different? of some ofa balance one of some of another? >> it is a balance question. still ahead, we are asking john maeda about his favorite design. you can watch a streaming on your tablet, your phone, bloomberg.com, apple tv and fire tv. ♪

>> welcome back to the best of "bloomberg west." john maeda has had a long and successful career at the intersection of technology and art. that can sometimes get compensated. expertisem how his influences his everyday taste. i was in tokyo for while. it was a double fanaticism. perfect oning things

a page. i was in that cult. then i broke out of it. i went british style. british style is free. what apps are on your phone? the bestcus on collection of apps? >> i like to know the design is not just an ecstatic -- aesthetic experience. it can be an off-road experience. those are all examples of good design. i might like the solar app because of the great way to look at whether, it feels like a rothko painting. i like snapchat. you get the combinations. it's like fried chicken and expensive food. back to balance.

what about clothes? steve jobs always wore the black turtleneck and jeans. it wasn't just the black turtleneck. there was something about staples in design. .hey are very simple there is a lot of care in the fabric, for instance. it is not just how it looks, but what it's made of. what designers do you like? >> the whole combo. >> i want to talk to about mobile computing. i just got my own google glass. think of google glass? this is the version with the glass frames. to -- i saw a robert

brenner. he would google these headphones to get beyonce. 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 beyonce 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 nude security threats -- new security threats. smart coffeemakers and washing machines are constantly collecting data about our habits. how can you be secure? brian white for his tips on how to protect yourself when using social media. , are we moreasking or less secure? >> i think we have to be

careful. you are putting so much information about yourself available to the public. people look to that information when they're looking to hire you. some people post where they are when they go on vacation. you are basically putting a dossier or on yourself out to the public. posted -- photo is posted, it is always online. >> it is very difficult to take away. >> is it better in private social situations? >> it is going to be very difficult for you to be confident that something you post online is removed. >> never tag location. why? >> criminals can take advantage of you being away way to steal goods from your house. there are cases of somebody posted that they are in new york and their home in separate cisco is empty. there is an open invitation to steal. >> every app asks for a location. >> they want to give you

directed advertising. you have to be careful of where you automatically check in. is there areabit very few apps that need to know where i am. to know, but yelp does not need to know where i am. links are everywhere in social media. >> it is easy to put into a #. it is difficult to determine which one is actually real. it is like the basics that we discussed. put the link back into a browser and see what comes up that way, rather than clicking on it. that may introduced malware into your system. >> put it into around her before you click on it. >> the systems like you to stay logged in. every time you get into a social media site, log out and then log

it -- back in. >> do they track this more closely? they have developed a lot of their information based on targeted individuals. they can determine your password. if they can determine key characteristics that you -- may give them information on how to take advantage of you. >> what about wristbands and glasses? everything has a chip in it these days. a does that put us at greater risk? >> it offers great promise. we have to be careful about what is connected. there are a lot of cases where somebody's refrigerator is connected. if that is connected, it is connected to your home network? somebody could take advantage of that ip address and jump into your network. learn much can people from your connected refrigerator? >> very little. mess with the system

and change the cooling and temperature. more importantly, they could escalate privilege and move to your home system. >> what about nest? >> nest has great promise. i am concerned about how much data it is collecting on you in your home. it enables people to get more of a dossier about you. >> is that more than is being collected by your phone? >> not necessarily, but it tells you about the temperature you like to sleep and when you are away. >> howdy you protect yourself? >> it is important to have these conversations. be prudent. be cautious in what you do online. post information and be responsible. everything about yourself that you post on a social media site is going to be there for quite some time.

when it comes to the internet and connected devices, determine what needs to be connected. the you really need to take advantage of that connection? >> that was brian white. disney has at the box office making $1ith "frozen" billion. we are asking the man behind the magic, alan horn, about the secret to blockbuster success. ♪

the rest ofack to "bloomberg west." i am emily chang. since alan horn arrived at chairman of walt disney studios, to disney films of top $1 billion in worldwide ticket sales. "iron man three" and my

favorite, "frozen." with alan horn about the secret to this kind of box office success. jon erlichman asked him how frozen has been for disney. i will say that it has been a phenomenal success. it is the highest grossing, number six of all time, it is the number-one animated picture. the biggest before that was "toy story three." this is a gigantic success. albumse been millions of sold. it is the number one on the charts. have you guys seen "frozen" question mark can you get that

song out of your head? are you going to make a sequel? >> we haven't talked about a sequel because we have announced a broadway making show in new york. the next thing will be a musical. we just need four or five new songs. kristen and bobby lopez will write those songs. sequelve a title for a that has been embraced. glad you picked this form to reveal all of the plot specifics of the star wars film. the internet is going to go crazy. you just told us you just told us you're heading to london. design.ok at production

i have learned to be very careful about star wars. if i say that there will not be skateboards in star wars, the creates a headline. isn if it doesn't happen, it news. i am being very careful. we will be able to talk about it very soon. we have all the cans -- confidence in the world in jj abrams r director and kathleen kennedy who is producing the film. >> there will be no state boards -- skateboards in star wars. the casting is almost done. is casting complete? >> it is almost complete. we are not prepared to announce it yet, but we will be very shortly. >> you said that shooting had started. did that mean --

>> we are doing second unit work in abu dhabi in other places. we have these locations that we have to film and give it that star wars look. we need to go to different places that give us the right look and feel. would it have second unit work shooting already. we have not commenced rentable photography yet. >> the primary location is prime -- pinewood in the u.k.. when you take all of these big movies home of the global audiences that are available to you today, which is a larger number of people than ever thomas should we assume that that strategy helps to offset an industry source spot like declining dvd revenue? 60%vd revenue is down 50 to . that is painful to us. when you rolled out a movie we

would get estimates from what it would make from all of these revenue sources. hasdvd component of that been cut in half. >> that was jon erlichman with alan horn. in the music business, cds have also struggled. vinyl has actually been doing well. withis even been doing itunes dominating. john went to check out one of the few factories where records are made. >> long before there was digital downloads, this is how you made an album. at rainbow records, the recipe has not changed. it is a process of heating up and the, the hot vinyl pressure. it goes under 1800 pounds of pressure.

it is like making waffles. a dozene inside of facilities that still press records. four years ago, rainbow records was down to making 5000 lps a day. about average day is 25,000. six days a week. >> 6 million lps were sold last year in the u.s.. sold,small versus total it is 40% growth. that is compared to a 44% drop in cd sales. look no further than rappers at macklemore. a year and a half after the release of his album the heist, rainbow is making the final version. physicalou buy the today, they will give you the digital copy as well. >> that is very common.

>> macklemore made the album available to whole foods and urban outfitters. >> they have got a 12 inch by 12 inch picture of themselves in a store that speaks to their brand. rainbow is scrambling to meet the new demand for final with old equipment. the newest record presses 35 years old. the testing takes place on a vintage turntable. >> this was converted to vinyl. >> this was a cd machine that was converted for final. >> that is where we are going. >> jon erlichman. the warriors of struck a deal with a tech giant. guberl talk about peter next. you can watch a streaming on

your phone, your tablet, and loomer.com. ♪

>> welcome back. i am emily chang. the golden state warriors have abandoned plans to build a new arena on the waterfront in san francisco. -- auck a deal with ace spot for themselves. they will land of the owner -- own the land outright. we talked to peter guber. we asked him why this new site in mission bay. >> we control our destiny. we own it. our relationship with the city is one as an owner and not as a sought --e feel the site gives us attractive

elements. the venue will be for the san francisco bay area. it is one of the top 25 markets. does not have a venue like this. we believe it can be activated successfully. they can be accessible by all four sides. it is right in the city. it has it's own location. it defines itself. we think we will have all of that money privately. we wanted something that we actually own the. >> you bought the land of privately out right from salesforce. i am curious how that happened. today try to recruit you to that part of the city? >> yes, mark benioff called and we met with them. we met with him. together, we fashioned an arrangement. we looked at all of the variables. , obviously.pensive

this was the place to make the move. it offered us a certainty, a timeline that was effective, and the accoutrements that were hard-pressed to get other places. >> when you talk about getting privately funded, how where does the money come from? >> have you ever heard of a rotator cuff injury where you get your money out of your own pocket? it is all privately financed by the ownership and the partners involved with the enterprise. without looking at public funds, we are going to be an active participant in the city. we will be a good listener to the marketplace and good for the neighborhood. we will be responsive. we are a private citizen building a private venue for the benefit of all citizens of the bay area.

it gives us the opportunity to control our destiny. >> what will be unique about this arena? when you can build one of these things from the ground up, what do you want to be the signature thing tied to this? >> everything is going to be unique. we will cast our line over the horizon and not make a copy of something else. it will be an original venue. it is an attraction and a lightning rod. it will attract the best artists. there will be a theater element to this, a public performance element to this venue as well. digitallyng to get it fit. we are very successful at oracle . we are going to have the right kind of visual display. we will have interactive video. we will make the audience not passengers but participates.

relationship with the business community and silicon valley to bring those talents to bear. it will be madison square garden out west. it will be the kind of venue that artists and performers and conventions and olympics are going to say i want to perform there. guber and ourter own jon erlichman. that doesn't for this edition of the best of "bloomberg west." you can watch us monday through friday. we will see you next week. ♪

>> the following is a paid commercial program brought to you by prosvent. >> do you make frequent trips to the bathroom? suffer from urgency or hesitancy? do you get up more than once a night? can you even sit through a movie? or worse, have a diminished sex life? if so, chances are you have an enlarged prostate. 30 million men now suffer from an enlarged prostate.