let's live from pier three in san francisco, welcome to " bloomberg west" where we cover innovation come in technology and the future of business. first a check of the headlines -- new york taxis just got some competition. huber is cutting fares on its service in the city by 20%. the company says it is experimenting with lower fares during the summer months postop new york is the company's largest market and they have tried similar cuts in boston. to thes adding suspicions of a soon to be announced smart watch.

they have a swiss watchmaker to help lead the watch release coming at the same time samsung begins shipping its own version of the smart watch called big lxe gear. tim draper is now almost 30,000 bitcoins richer. he won them at an auction held by the u.s. marshals service recently when they pulled off access from a website shut down by the fbi last year when the marketplace was found a forum to buy and sell illicit wares. he will join us later to discuss his plans for his bitcoins will stop apple has posted a senior executive from a swiss watchmaker. the former vice president of sales at the watch company has been selected. he's not the first executive from the luxury sector to join apple. if former were buried ceo

started as apple's head of retail in may. apple'sng points to growing interest in the wearable sector and could point to the launch of a smart watch later this year. the samsung galaxy gear smart watch started shipping today. be inccessful will apple wearables and is there room for another device to succeed in an already crowded market? to answer those questions, i returned to ibc's chief retail officer joining us in boston and our reporter for bloomberg news. what exactly do we know? >> we know that apple has hired this guy who is a senior sales executive to come over and help with their sales effort. it is adding to speculation that this watch will be coming out later this year. in addition to being a technology gadget, a watch is a very fashionable piece, so adding this experience gives

them another person to help as ae customers and see it fashion item. >> if the watch is coming this all, why hire this new person now? >> i think the product has been developed, to your point, having around for quite some time will stop what people need to think about his distribution. would apple be looking at different distribution channels? premium watch dealers -- a gentleman like this would come with distribution experience, channel relationships and you could see this device shipping through very different kinds of channels, not just the apple store or online. >> there are some interesting numbers out about how big you think wearables are going to be. you think shipments will triple over the next few years but forrester actually thinks the wearables spaces going to decline. how do we square those two things? >> i can't comment on forrester's numbers. i'm not sure of the thought that

went into that. our market breakdown is three areas. complex accessories, which is a form of wearables you are familiar with today. these are things like the fitted bit where you connect to a pc or other device to get your information out. that is the fastest-growing. we do not see the wearables market really becoming significant for another few years, even a year out. that is where we get smart accessories. those are things like the galaxy gear where you have apps you can download to the devices. sayinglieve forrester is these accessories and the chips that can do these different things are going to be the then to future phones. why would we need a watch at all? >> that is the ultimate question. right now none of these products have taken off beyond a niche and for apple, we are not ,alking about a fit bit style

they want something in the multiple billions of dollars of his this. market, of the consumer looking for something to make it much more mainstream and take it beyond technology in search of a problem that your everyday person will be interested in buying. >> what is it going to take to get there and who's to say this market will have longevity? >> what it's going to take to get there is stopped dehydrating smartphones and putting them into watch like devices with little tiny screens and with fat fingers it difficult to manipulate. you've got to create a device that is an extension of one or two applications that nail jobs people want to do every day. i can be around health or broader health like imaging ellis, they could be around fitness. but the bottom line is that it has to be an expression of you. think about a watch -- is a

watch about telling time or is it about wearing jewelry? i would argue that it is the latter today. that's where we have to go to change the shape of this curve and get people excited about it. >> bloomberg news has done a lot of reporting about how far along apple is with this watch and how many people are working on it. tell us what we know at this stage. ande have a growing team they are hiring a ton of different people from various fields. you see them from health and now from fashion. at all points to this thing being released later this year, but the exact timing is unclear. apple is going to have a busy back half of the year. they have a new iphone coming out, which you will have new screen sizes. they have a new ipad and this watch. this is a very important time for apple and it's going to set the tone for the years ahead. >> i know ahead of the holiday season is when they like to release new things, but why back load these intentionally new

devices if indeed they do come out? >> you want to get people excited in the fourth quarter. this is the time consumers around the world for specific holidays really focus on the newest devices. i still view what apple is doing around wearables as largely experimental. i think they will experiment with a very premium device to make an extension of a great ecosystem have already created. theyou think about disposable income a premium device will require, that income in theably earmarked latter part of the year for any specific holiday. >> they also brought in angela ahrens from are buried. have we seen her impact on the when itand their stamp comes to bringing in these high-fashion people? >> it remains to be seen. she has only been there a couple of months and there have been

reports about what she is doing in terms of streamlining the retail business and moving people into different roles. for interviews have so far been denied. we will be hoping to sit down with her in the later part of the year to get a sense of what she's doing. you both. appreciate your thoughts here today. uber is slashing some prices by up to 20% this summer. is this a sustainable business model? you can watch us streaming on your tablet, your phone, bloomberg.com, apple tv and amazon fire tv. ♪

>> welcome back to "bloomberg

west." i'm emily chang. now cheaper than a new york city taxi, after announcing they will slash prices by 20%, after they have cut prices by 25% in boston. what this reveals is more about uber's pricing strategy. is a company we have talked about a lot. what do you make of this? >> i think they are trying to take some market share in new york. one of the things people don't realize about uber is that places where there's a good cap taxis, theyccess have struggled to gain market share. the only way they can do it is either offering luxury cars or cheaper rides. i think they are offering cheaper rides right now. >> it's a polarizing company.

you have customers who love it and customers who hated, drivers who hate it. is that going to continue question mark >> i think so because uber represents a custom -- a company that represents a lot of essential services where government provided it are getting replaced by private technology and i think we are afraid of that future where the government has much less control over how we move around. getthe same reason people upset about airbnb or these new services coming online. our idea ofoning what public transport is in how we go one place to another. it also leaves behind a certain class of people. >> uber has said we can raise

prices when we want and can lower them when we want. what does that say? >> it is a free market. it's a busy time of the year, as prices go up, prices go down -- airlines do that all the time. regulatinge people that part of the process, it may be a good idea. legislativent and bodies are not taking the time to understand what the shift fromy means, so they react a political vote gathering standpoint without saying how can we work with this technology change to figure out where the future is and how as a government, how are legislative forces relevant? has a $17 that uber

billion valuation, where do you see them going? a $200ople say can be billion company. >> i can tell you how big it becomes but it has become part of peoples daily lives. i think that's a good sign from a future standpoint. fabric, at least in san francisco, you will see a become more and more prevalent. >> i want to talk about coastal ventures. with googlewn cofounder, larry page -- you don't see that very often. we learned from both of them sitting down together -- i want you to listen to this quote from larry page. they know they are doing too

much stuff and will be like yeah, that is true. hard not to comment on his voice. it doesn't sound good. what do you think it sounds like? >> raspy. it sounds like my voice when i used to smoke. >> does it worry you? he has never been a very public speaker. google as a company believes more in e-mail. >> let's talk about what he was saying there. whether google is doing too much -- all of the things we are doing are somehow related. what do you think? >> both companies have different ideologies. steve jobs is steve jobs and

larry page is larry page and they have a very different way of thinking about it. from my standpoint, what they are doing makes perfect sense to me. to the outside world, it seems incompatible and crazy, but it's not. of technology has gone from the browser to our lives and what they are trying to gather is as much information surroundings,ur , androidt is android phones or tablets, to figure out how to serve up the best google experience. of it is scary, but that is who they are. this all makes sense. a piece about google car

and why it makes sense. is theey are doing technology world and digital world are going to come together. it's just a microcosm of that, so i don't see anything crazy. they are just doing what they're supposed to do. makes senseee that to us regular people down the line. thank you as always for stopping by. finalrld cup enters its week and espn is already the big winner. next, our exclusive interview with espn president don skipper. ♪

>> welcome back to "bloomberg west." i'm emily chang. after a wild weekend of world cup action, it germany, brazil and the netherlands advancing to the finals. one group that is already one big is espn. betty liu got an interview with john skipper, espn president, and asked what they learned from 2010 that is translating to 2014. >> we applied a lot of lessons we learned in 2010. we took it up several notches. all of the documentaries we did an studio shows, the amount of international talent, we just decided every thing that worked in 2010 will work better because of the time zone, because of her zillow and how special it is for soccer, because more people are coming to soccer in this country. our average television rating is up 39% despite the fact that it is up that much, digital viewing has been through the roof will stop -- through the roof.

this is the most streamed sporting event of all time. we are 70% b on the sochi lévesque's. we will be more than double the sochi olympics before this is over and was the previous high water mark. >> i want to go through some of those numbers for live streaming. u.s. -- million for the germany match. 3.5 million for the u.s.-a belgian match. those people who watch there, we are selling ads for those folks. wish you sold more? >> i always wish we sold more. they have sold very aggressively and this just means we have been aggressive. >> it did not go off without some glitches. let's see what some people said as it was live streaming.

and stream getting bad worse. can we start a kickstart campaign to get espn more server time? remarkable,t's given the volume we deliver, the problems have been tiny. i'm sure that tweet came from the usa-germany game where we had a very small number of people have some issues that were technical. but 99.5% of people had a good experience. log on to the next game and i promise it will rate. kudos to our guys. they have done a great job stop we can handle and enormous all human to juggle users. of guysserved a lot during this and served fantasy brackets, so we can handle the scale. >> so you would say you were as prepared as you have ever been for all the people to click online? >> yes.

it really has been. your research is absolutely correct. itre were some tweaks, but was tiny. our guys have been great on this. >> does that mean you can see this enthusiasm translating to live streaming in other events from here on out? >> i don't think there is any doubt. while we are proud of setting the record, this record will be broken because people are getting used to the idea that they can watch their games on whatever device they have, wherever they are, under their control, and it's going to keep going on because of the importance of watching events live. the world cup rights, you are not going to have them in 2018 or 2022. >> you really are spoiling the party. it was really fun until now. on doing aentrating great job here. of courseat event and there will be some regret and

not having it on but that is the capitalist system and we will continue to participate will stop >> does that make it bittersweet? >> no. -- ouro fun and so great production, all the people are doing such a great job that i'm going to enjoy it right now. i don't think you need to be bittersweet about it all stop -- bittersweet about it. >> that was espn president john skipper. bitcoins worth as much as $90 million. what does tim draper have planned for all of his bitcoin currency? is when he six minutes past the hour, which means lumbered television is on the markets. i'm matt miller. take a look at where the indexes stand right now -- we have come a long way off's little changed mark, with the nasdaq falling .75%.

this all comes from record highs that we hit on the thursday before the fourth of july, so it makes sense to get a little breathing room. we are back on the markets again in 30 minutes. ♪

>> you are watching "bloomberg west" were we focus on technology and the future of business. tim draper was the highest nearlyin an auction of 30,000 bitcoins. it was part of a larger pull a virtual currency seized on the silk road website. there'seat out 44 other for the bitcoins worth about $19 million at the time of the auction. he said he will use the currency to grow a startup he is backing at will enable companies to trade and store bitcoins on behalf of customers. thankaper joins us now, you for joining us.

>> thank you for having me. >> why did you bid so high for them? very exciting new technology. it can transform our entire economic system over a long time. this was a long-term purchase for me. this comes at a time where it governments are emerging and had bad currency. easierin transfer is than when using a credit card. i'm excited about what it can do for the speed of money moving across borders and around the world. and ireally exciting think everybody should go by a bit point and see how it works.

set up an account and try spending it. there's a great company called snap card that allows you to buy on any site. you can buy things on any site with bitcoin. the winning bid? we know they were worth about nine t million dollars. we heard you paid a bit more than that -- $19 million. >> apparently i bit more than all the other bidders. [laughter] so that is side of the way it goes. there are some he people who can .enefit from this there's a company in argentina value ofs the entire an argentinian peso every three or four years due to inflation.

and africacompany doing the same kind of thing. mexico, there is one called coin co.. there are a lot of interesting transformtrying to the emerging economy. you mentioned one company, but do we need more big companies like amazon, like starbucks to start accepting for it to survive as a currency? through snap card, you can go to amazon and buy things with bitcoin. it is already happening. many companies that are making a great rest announcement -- i've noticed three or four since i hit the bid. they have decided they are going to also accept bitcoin, so it is

happening. , a veryew ecosystem powerful ecosystem not tied to , ifwhims of a government you are not comfortable with your government, bitcoin is a great hedge. any institutional investor who is a fiduciary needs to have some bitcoins because it is a possibility that this becomes the main currency of the world. bighy don't we have a national exchange in the united states for bitcoin? >> there are. all of these things take time, but if you go to the me.com, there's an exchange and it is right there and it is happening in real time. i encourage you to all go out and give that a shot.

>> some people are saying that this is a publicity stunt and bitcoin is not that useful in developing countries. on the other hand, maybe they need that liquidity. what is the story? >> this is a really exciting time for people who are in governments that are not competing well for their citizens. this is a great opportunity for the citizens to go do real commerce, more efficient real commerce than they could with their fiat currency. so this is a great time for them. i have noticed throughout the third world, people are using bitcoins very often. me, it'sxciting for exciting for the bitcoin ecosystem, and it is really exciting for those people in the

third world who are rising up because they're going to have the most efficient currency system on the planet. >> what are they using it to buy? >> anything. makeare using bitcoin to quick transfers that take in argentinian pesos and convert them to bitcoin because they have more faith in bitcoin then they do the argentinian peso. forhat is the potential another alternative currency to replace the coin in the future? >> i think bitcoin is the leader there and will be for a long time to come. if people are trading and buying things on bitcoin, it's going to be harder for another currency to come up.

>> i was speaking with reid hoffman who said bitcoin is the number one trend on his mind lately. so he is thinking about it, you havehinking about, but you to surely business leaders across the country -- for the people who are not on the bitcoin and wagon yet, what is the biggest agitation -- you guessed hesitation? >> i think they have to try it. go and buy a bitcoin. once you have a bitcoin, try to spend it. you do snap card for that. , and they say this is in bad and it's actually more efficient than using a credit or any currency tied to any government. and is a very exciting time coming technology i see

up that has an amazing future to it. i'm very interested in financial technology, new financial technologies, because the banking world and investment banking world and the venture capital world are all going to be completely transformed in the next three or four years. going is one of the technologies that makes this very easy to happen. through it going, there are smart contracts and there are ,ompanies doing sub ledger's like a network accounting system where if i buy something from you, both of r sub ledger's get up dated automatically. they company called sub ledger does that. a company called he shares takes care of all of your shares electronically, so they don't

have to go through many iterations with lawyers and accountants every time shares get moved from one place to another. this is as transformative to finance as the internet was to information and communication. >> tim draper, we will talk more about where you are placing your other pets. tim draper, founder of draper, fisher rogerson, next. to area oh, we've seen many disruptive countries face investigations. draper will weigh-in next, on "bloomberg west." ♪

>> i'm emily chang and this is "bloomberg west." this weekend in l.a., a stolen tesla model s split in half and exploded in flames after a high-speed chase ended when a car collided with

several vehicles and a light pole. the vehicle and is a -- and is currently in critical condition. the investigation is still in the hands of l.a. police and fire authorities, but teslas ready to help as needed. tesla has requested to take a look at the vehicle as soon as possible. and tesla is just one of the bold investments tim draper has made over the years. in the wake of aereo suspending service after the supreme court ruling, to talk about this is welcome back. when you hear these stories about tesla cars. they have had issues with fires before, what goes through your head? >> i think there are far fewer tesla fires than gas powered fires. i think it's scarier to be in a gas powered car now.

but your general question is a .ood one i think it is the incumbent can afford lobbyists who will then sometimes stifle creativity and progress. i think a lot of cases, that happens. whereas the startup does not have a lobbyist and doesn't think really they have to go change things in washington. if their technology threatens an existing industry because it's a better way to go for the thread,s, then that instead of completing -- competing in the market base, companies will go to washington and try to get a law changed. me to fixs california.

the reason i created it is i believe governments are not close enough to their people now. closer it needs to get and more relevant to the people in that region, so silicon valley's government would be very different from a government in central california. >> you have invested in a number of companies that could have big rewards but certainly do have big risks and regulatory issues. anddo you weigh the pros cons when you're making this investment decisions? >> fortunately, as a venture capital investor, we have a portfolio approach. occasionally, some companies will go out of business.

backing in the case of elon musk, he is and extort very man and has done amazing things for our society. intox can launch a payload the price it/200th cost nasa. tesla is wonderful for the environment. unbelievable it is how well it balances because the batteries are balanced drop the car, rather than having a big gas engine. elon musk is awesome and if you want to do another startup, i'm ready to back him on day one. >> is he the kind of guy who will listen to your feedback or do you just give them money and he can do whatever he wants? >> pretty much both. i listens to feedback and will just give him money and he can do whatever he wants with

it. [laughter] he did do something -- he made ideac the hyperloop because i think his hands are full with spacex and tesla. he had this great idea for the hyperloop and that draper university of heroes, we've got the students focused on the hyperloop and coming up with good ways to actually make the hyperloop happen. the hyperloop is a very high-speed train planned to go from san francisco to l.a. and back. it is great. what he does is he thinks big and thinks of the future and then he says this could happen. willof the people say that never happen, but a few people gather around him and say how could it happen if we wanted it to happen? that is the way his businesses grow and thrive. he's got great vision and it's

so exciting and wonderful to have him on the earth will stop -- have him on the earth. >> tim draper, thank you for joining us today on "bloomberg west." >> inks for having me. anybody eight teen to 28, go to draper university of heroes. >> thank you, so much. amazon's streaming television service plans a big name in kids programming. -- we goo the later into the creator of the latest project from blues clues. ♪

>> welcome back to "bloomberg west." i'm emily chang. amazon has been ramping up its offerings for its instant prime streaming service to keep up with netflix. recently, amazon studios released its second children show called creative galaxy. our west coast correspondent,

jon erlichman has more. >> the creator is well known in the world of kids programming and educational programming. this new show was made for amazon as an original. so my first question for her was why go to amazon with a show like this? been a huge amazon consumer for a really long time. but it was because of the head idea and kids and her vision to create a creativity curriculum and bring that to kids. that fits well into what i wanted to do with the program. nothis is a show that is dumbing things down. you talk episode, about pointillism. i'm learning things about the world of art to a show like this. amazon clearly focused on kids programming, but educational program. >> i have a background and

childhood development and we research everything we do. we never done anything down for kids. we expose them to expressive vocabulary and expose them to making crafts and i'm excited because we are showing the masters, picasso and then go and ask will -- exposing kids to an amazing art greg gillum. >> amazon has this process they launch into original shows where they will pick up a pilot, show that to their viewers, get some feedback and make a final decision. what did you learn as heart of that process? >> it was a huge focus group we've seen. for me, it was about listening and learning with a bigger audience in terms of what people wanted. i was sitting there forever while the pilot was up, just recording everything people were saying to make a better show for our consumers.

it was exciting, interesting and a little bit nerve-racking. >> when my daughters are watching cable, kids programming on cable, a lot of times, their stuff a want to buy because they're seeing advertising. in this case, you are not really exposed to advertising. big lace that sells a lot of stuff, but there's a big difference between prime and watching on cable. >> that is what i like. kids can get what they want when they wanted and what we have been able to do at amazon is inspiring kids to actually go out and make stuff after they watch the show. the music and everything is all around this idea that we want maketo go out and something they might have the materials for in their kitchen. we are trying to get them to go out and make, which is refreshing. >> we talk a lot about binge

viewing. adult talk about it with programming. maybe less with kids. what do you have to think about knowing it's quite possible that kids are going to be watching 1, 2, 3 episodes at a time? make sure at the end of the day, the kids are learning. they want to make sure that the goals are being met. know they're getting something out of it, but you can pick and choose. we had a little boy tell us the other day that he has been learning about vincent van gogh in the classroom and ask for an episode about it will stop you can pick and choose, which is great about having a library there. it might not be binge watching, you might be pickier, but we hope everybody is watching them as many times as they would like. the creator of

"creative galaxy." >> that show streaming on amazon prime now, which is somehow related to the bwest byte. you got it -- one number that tells a whole lot. >> a little out of context. by piper to research jaffray, of the shows on television, 12% of them are making their way to amazon. amazon is not just doing original shows, they are buying the rights to existing tv shows to have lots to offer. an amazon prime customer, when you can watch these should shows for free, it be sweet. can amazonompetition be to netflix? >> netflix has the lions share but amazon is willing to spend. they like cheap prices but they're spending big bucks will stop >> tank you so much. thank you for watching this edition of "bloomberg west." we

will see you later. ♪

>> i am mark crumpton. this is "bottom line," the intersection of business and economics with a main street respective. distributors filed complaints against herbalife. the u.s. military grounds its entire fleet of f-35 fighter jets. and the world's largest private collection of tanks goes on auction. ♪ ♪ to our viewers here in the united states, and to those of you from around the world, welcome. we have full coverage of the ck