>> live from pier three in san francisco, welcome to "bloomberg west" where we cover innovation, technology and the future of business. samsung escalates its rivalry with apple, releasing to new phones ahead of the apple event. one of them features a curved display. samsung showed off a virtual reality headset and new watch. box is on the lookout for the best time to go public after delay lands for an ipo. i sit down with the ceo and ask him about the ipo, the company's

new suite of enterprise solutions, and the recent hacking of celebrity photos from apple's icloud. the nfl season gets underway tomorrow night. we've got a special look at how the nfl became a media powerhouse. and we will look at how technology is changing the way fans watch football at home and at the stadium. first to our lead story -- samsung adds some fire to the heated rivalry with apple, unveiling its galaxy no smart phones six days before apple shows off its own big-screen iphone. the new tablets are the galaxy note for and the galaxy note eng that features a screen that curves over the device is inflexible screen technology. they also announced a virtual reality headset developed with facebook. they showed off a new wearable, the gear as smart watch. all this happening event in beijing and new york.

cory johnson was at the new york event and joins us now. you got your hands on some of this stuff. what is it like? >> it's like a phone. it was interesting they made such a big deal about what seems to be a very marginal announcement. the new note device was announced, but there's no timetable or shipment date. the same thing with the samsung edge. it's got a bevel on one end so that it can offer some screen commands and the use like a menu. interesting, but not necessarily groundbreaking. it am thing they showed off two years ago and these hot introduce, but it's more of a handshake than a hug. there's no price on it or carry our announcement, so it's a lot about being ahead of apple, not about announcing a new product. >> samsung's tablet market, the sales have slowed down, not unlike what is happening with

apple, but they have dominated tablets until now. apple next week will be giving them stiff competition. >> there's going to be some changes in the way the business works and the breakdown of what a phone is, what a tablet is, and what is in between. particularly the in between area where we've got these excise phones coming next week. i wonder how it's going to shake out when we talk about the many tablets and what it means for those devices. we understand apple will come out with a bigger ipad and i think the market and across all screen sizes, the market is getting bigger. >> as i understand it, samsung took a few swipes at apple. maroon five said they would be an iphone burning after the show? >> about a year and a half ago, i was here in new york and they

announced the phone with a tap dancing child. this time they had maroon five come on and announce it, but they were not playing music. they were talking about a proprietary samsung music program. it was kind of an odd event. it felt like it was trying to put samsung in the forefront of discussion. >> what about the virtual reality headset? samsung now partnering with facebook's oculus to create a virtual reality headset. where is it going to go? >> it's like the phone -- when is it going to happen? an announcement does not a product make. they did not have them physically -- not only not in the markets, but a plan for what it's going to happen. the device itself, i have used the oculus itself and it's basically the same thing. it's interesting, but a very

beta like experience that will need fine tuning before it goes mainstream. >> i know you tried it on. what was it like? did you get nauseous? >> no more so than usual. it is pretty cool. there i am trying it on right now. it is fascinating that there were people behind me and i couldn't see what i was looking forward. the camera angles were interesting. i can imagine a filmmaker having an interesting time with it. there's a guy at bloomberg who created a bloomberg apps he could have an infinite number of bloomberg screens. so for the bloomberg obsessed, that's a wonderful thing. the whole story of what went on today, we were expecting them to announce a samsung watch and they had one in the product demo room. there was no announcement and

when you asked the samsung people, they said we are not talking but i watch and i said there's a watch right here and we are not talking about it. but they had them their and there were a handful for people to try on. it's an interesting device. stephanie ruhle call me old, but she knew dick tracy was. it lets you make phone calls and turn directions while you are walking. it's interesting, but it's not interesting for prime time. >> you are old. who are you kidding? looks older than some. thank you so much. cory wasn't the only one who got his hands on the new samsung device. sam grobart was also at the product unveiling this morning. >> is it september? are we in a vaguely hip downtown manhattan location? we must be at another samsung

event. today, they unveiled three new products -- the galaxy note four, the galaxy note edge, and they gear vr. this is the company's flagship tablet. it features a 5.7 super crisp display. but it can be charged to 50% in only a half-hour. it actually herbs off the side of the device. the year is a headset that provides virtual reality. it was designed in conjunction with oculus and is powered directly off of the note for tablet. this has been a tricky year for samsung. on the low-end, there's stiff competition from lower priced chinese manufacturers. on the high-end, companies like apple remain extremely competitive.

what we are seeing today is that as far as the u.s. is concerned, samsung is putting it shipped on the high-end of the market. with major events coming for motorola and apple, we will see how the battle for the luxury and plays out. >> speaking of product launches, apple has one of its own next week with the new iphone. or iphones plural, but the company is battling a rash of problems in the last hour and its shares are taking a beating. that's next on "bloomberg west." ♪

>> welcome back. i'm emily chang. the week leading up to the next iphone has been filled with challenge. first, nude celebrity photos were leaked followed by an hours long itunes outage yesterday. china mobile has already started reorder's for a mysterious new iphone in beijing. according to the china mobile website, over 53,000 pre-orders have been placed since the promotion started yesterday. shares have been down more than 4%. how ainge or is is is declined ahead of this company's most important launch ever? china mobile is selling a phone it's not even out yet? what's up with that? >> they decided they wanted to get a jumpstart on the market. the stock has come down a bit but had a good run for a while as investors were anticipating

this new device. a few analysts came out today and threw some cold water on expectations sanctity wearable device not going to be a huge profit driver and they are dampening expectations. >> goldman sachs say they may downgrade apple stocks. how about you? >> we think this is a wonderful opportunity ahead of a very big product refresh for apple next week. we will have them competing in the larger size smart down or they have not been in the past. i think they will revolutionize mobile payments with their fingerprint scanners and as these security breaches bring to light, the need for security is higher than ever. with the new security features, this is a buying opportunity for investors. >> apple says icloud was never breached in this celebrity photo hacking scandal. but if apple accounts were broken into somehow, is the responsibility on apple?

>> it is a problem apple can help solve with the new security measures we think they are putting in place. better underlying trust zone technology, jmp was out this morning highlighting the advantage that brings to the market. >> what does that mean for me? >> if you wanted to have a fingerprint scan for what you are doing in the cloud, that's an option that will be available to you. with the focus on security with apple and its unified development system able to do it in a better and stronger fashion than anyone else, that's going to help drive iphone six sales and reinvigorate the category in general. >> what do you think we will be hearing at the apple event about security? >> i think you will hear more about how they touch is going to be integrated. they've been including the fingerprint technology in the iphone 5 and i think you will see more of that. it is something they see as a

differentiator between some of the other products on the market, but when you have these things out there like what is happening with icloud, it raises some concerns about if someone is sharing health information and financial information, there's something in the back of their mind at if apple can't protect my photos, why should i give them this information? >> apple is asking for more and more sensitive information. they have had our credit card information for a long time. can we trust them? >> i would say they've had this information for a long time without material breach. i would say this icloud intrusion is a minor wrinkle in an otherwise stellar track record. what i think will happen is rather than push people away from the new technology, i think he will bring them toward it will have the best, most secure systems in place to protect that. especially as american express,

mastercard and visa are lined up to find it. >> why do you think shares are feeling pressure today? wi-fi think it's a little of off the taking and a lynnwood of worry. apple typically trade as a cell the news type of stock and historically that is a historic buying opportunity. to give samsung it do, it's had a nice hot refresh unveiling the note, so maybe today is samsung's home and in the sun, but it will be apple's next week. >> has not been competition from apple in that market. can apple shake things up? >> if they come out with a five point five inch screen, think a lot of people will get out there and buy it. those devices are particularly popular in asia and that's where they have been strong will. you saw them come out with some new designs and i think a lot of technology companies are trying to get ahead of what apple is

doing and we will see what happens going into the holiday. i expect these vices will be pretty popular. >> sales have slowed down for samsung and apple. what can we expect from tablets? >> apple will keep pushing on tablets. they obviously have the enterprise to try to make those devices more appealing to business. the established market is a hybrid device that either can't afford both or want the functionality of both in one device. with apple entering this allegory and entering it with new functionality, stronger functionality, better gaming, wireless charging, fingerprint scanning, all of these new bells and whistles they have not had before, it's going to be a big upgrade cycle. >> how optimistic are you about a smart watch? >> we think it's coming. we don't know about the timing.

we think it will use an old lead display which is why they are recommending a company that is supplying the note for. we think it ties in wonderful with nfc and we have indications all of these technologies will be in the new iwatch. we think it will be successful when it gets there. >> a lot of potential news has been trickling out of it almost seems like more than usual. any surprises or one more thing we should be looking out for? >> if i knew, it would not be much of a surprise. a lot of stuff that in trickling out about what these devices are going to be but nobody knows what they're going to look like. that is going to be the big reveal. they've done a good job keeping the lid on the supply chain and letting things like that leak out. that's part of the reason there will be a little bit of a lag. i think part of that was that the would not see it and it's a

christmas morning thing they are going for when this device will come out. >> i think in this year, it will be more than just the iwatch that we get. apple has some surprises in store. it's not going to stop in terms of a simple wearable. apple tv, home automation, car play, all of these things tying together, it's going to be a fun holiday season. >> very much looking forward to christmas morning. are you ready for some high-tech football? the 49ers are moving to silicon valley and we've got a new look at their stadium. ♪

>> welcome back to "bloomberg west." i'm emily chang. the national football league has built an empire on the back of a elevation deal that drives revenue. but how much more can the nfl grow and what role will technology play in that expansion? for the rest of the show, we will ask laura that question in our own special, "the nfl's media empire." we are kicking off with a sneak peek at levi stadium. the cost over a billion dollars to build and is located in the center of the tech universe, silicon valley.

stadiium has done before. but the stadium has already had its share of problems. the first lady him held at levi's held tens of thousands of fans in traffic gridlock and twice in the last week, the turf had to be ripped out and replaced. i got an early inside look at levi stadium. check it out. 69,000 fans. >> i get crazy excited about it all stopped >> 170 luxury suites. >> i can't wait to see it. >> $1.3 billion. >> we are talking about a world class stadium. >> the san francisco 49ers are kicking off the nfl's id. in a brand-new state-of-the-art, tech savvy stadium. intel and sap have signed on to be at partners at levi stadium and yahoo! is sponsoring the fantasy football lounge. >> we have more tech partners that any other sports stadium. that's because of the vision we are trying to build. we wanted this place to be the physical manifestation of silicon valley. >> 2200 flatscreen tvs are not the throughout and fans can always look to the end zone if that's not enough. >> this is the largest outdoor hd video board.

the players will run down the field and look at the video board. ask most cannot compete with the high definition experience fans get watching football at home. the new stadium is in santa clara, 45 long miles south of san francisco, in the heart of silicon valley. that means it has to woo the smartphone said. >> these days, you can't get a photo or instagram -- maybe not even make a phone call because the lines are tied up or the bandwidth is not there. >> you will be able to check twitter, go to instagram and most importantly, sent texts. >> i have 29 engineers hired from companies like a spokane google. those engineers filled a special game day after that instant replays. it is a cashless, ticketless experience where concessions are ordered from your phone. >> you can order beer or hotdogs

to your seat. whether you are front row or upper deck, that is half tech and half industrial engineering. >> wi-fi access points are with it and be of every seat and more than 200 phone charging stations have been installed. internet bandwidth is 40 gigabytes. for times of what the nfl plan dates. but what about traffic issues and tech alleges? >> there's going to be a learning experience for everybody. we tested a lot of sound and it's going to be very loud. but you won't know until you put 70,000 fans in here. >> one thing for sure is nobody is more pumped than the players. >> i have dreams about the stadium. >> we will have more on the technology the nfl will be using later in the show. coming up, aaron leavy was set to take box public but delay the ipo. i will ask him what the cloud

storage company's new timeline is, next. ♪

>> you are watching "bloomberg west." i'm emily chang. ager outages have hit facebook, ebay over the past few hours. facebook says they encountered and error making an infrastructure change and ebay said they had some minor technical problems while conduct and server maintenance. this comes after apple's itunes went down for hours yesterday. so far, no evidence these incidents are connected stop box is waiting for an opportune time for an ipo after delaying plans to go public earlier this summer. today, the company announced a suite of enterprise solutions aimed at protocols like health

care and media. i spoke with the box ceo earlier today at their enterprise conference and asked about their approach to security in light of apple's recent celebrity photo breach. >> this is a most sensitive topic that any cloud provider has to deal with. we are managing other people's data and information we have to invest commensurate with the sensitivity of that from a compliance and control standpoint. because we are focused on enterprise, it lets us go a bit further from to back to verifications and full reports of everything that happens on the system. integration with the identity management system so you don't have accounts that are disassociated with the organization. those are things we invest in

that allow large businesses whether you are it eli lilly, toyota or general electric to use our web to manage your information. this is job number one of any cloud provider. >> how has all of that changed your approach to markets like germany? >> internationally, we have to ensure we have the right technology that will work or those customers. because we built a collaboration platform, most of our customers use box internationally to share with partners around the world. it does mean you need to enable that in a way that is compliant for different regions and different markets we are serving, but we have to do so with a security level that will work for those organizations. >> drop box just announced at 80,000 paying corporate customers, double what you announced in march. they are considered a consumer company first. who is eating whose lunch? >> there are different sized lunches being eaten. we tend to serve larger

enterprises like ge, toyota, eli lilly. today, we announced remarks, 20th century fox, dolby at netflix. our number is more representative of larger businesses. google apps has 4 million paying businesses, so our job is just to focus on large enterprises. that means our numbers won't necessarily ever reach the millions but we enable our platforms for businesses of all sizes. >> the cost of storage is dropping. you guys reported revenues not rowing as fast as it used to. when does box become profitable? >> it's hard to continue to grow a business like ours at 100% every year. the last number we shared was a little over 90% were q1 over q1 growth. from our respective, the growth is strong and holding up well.

it represents how much transformation is happening in the industry. we have cio's from some of the largest companies moving to this model imputing and moving to our platform. that's exciting for our transformation in business model and the business model becomes more efficient over time because our investment for acquiring new customers doesn't grow at the rate of the recurring revenue base. >> you filed for an ipo in march. what is it going to be? >> i can't say. we are certainly on that path but given what happened in march, we are more careful talking about timelines. >> amazon shot the video gaming community when it agreed to buy twitch for a billion dollars. twitch is a place where you can watch other people play video games. the twitch ceo was on "street

smart" with trish regan and cory johnson. they asked why sell to amazon? that's what i first met up with them and got to meet with jeff, i heard there vision for where they thought aiming was going and where we thought it was going, it was clear that we had a shared vision for where we thought the naming industry was going and how twitch would lay into that. independence. i get to remain as ceo of twitch interactive and we get to be a fully owned sub and that's attractive to me because i'm passionate about the area. i love the company, i love what i work on and did not want to sell it in a way that would force us to change course substantially or give up that independence. >> when you face these kinds of acquisitions, every company thinks when they get acquired they can continue to run the show but it doesn't work that way. in the case of amazon, with

their acquisition of audible, they continued to let it exist in new jersey and let don katz run the company and let them do that thing they do. how do you know that will be the case and you can run this business the way you want to run it? >> amazon does have a terrific track record for this kind of thing. look at imdb. it still run by the original founding team. that gave me deep comfort that amazon is serious about providing us a level of independence and support stop that is what made a huge inference for me in deciding amazon would be a great company home for twitch. tony is still there and it's a huge deal. but you know it is incredible to me is you guys started in 2011 and here we are in 2014 and you are selling yourself for a billion dollars to amazon. this surge in this business and the opportunity and has just been incredible. did you have any idea that in such a short amount of time you

would be where you are today? >> when we got started, we had no idea it would grow this way. i was excited about it and thought there was huge potential and thought we could get to millions, maybe 10 million people quickly. we severely underestimated how quickly we would be able to grow. you guys mentioned -- this all gets back -- we just hit 60 million units, which is awesome. we have been on a real rocket ship that. i knew the content was amazing and something i was passionate about but it's awesome to see the response from the community and see the growth in the space. >> i remember -- you and i talked in the past but seeing the internet traffic reports, you guys are as much as one for the internet traffic and that's an amazing thing. what percentage of increase happened when the new playstation and new xbox

incorporated twitch as a feature? >> they've both been really influential on our growth trajectory. >> that was the twitch ceo with cory johnson and trish regan. we will be right back.

>> you are watching "bloomberg west" where we focus on innovation, technology and the future of business. national football league starts its regular season tomorrow with the seahawks hosting the packers. the league has built an empire on the back of a $27 billion television deal that drives its revenue. but how much more can the nfl grow and what role will the adoption of tech play in that expansion? we're back with our special,

"the nfl's media empire." i'm here with cory johnson and the former san francisco giants coo. the nfl is unveiling nfl now, whereby mobile highlights will be available, but not yet told games. full games available online where and when we want to watch it? >> the over the air tv networks have helped told the golden egg the nfl has sat on because it reflects how our society consumes information and consumes sports. i'm waiting for nfl nano second immediacy, virtual season tickets. we are a few years away from that but the league is trying to reach out and generate every dollar they can. high tech is a bit of a challenge. >> obviously a 27 billion dollars contract is huge and the nfl commands a real live viewing experience.

people will stop their evenings to watch games live. how much does the amount of money they get from television hold them back from embracing other kinds of technology? >> clearly it does, and i think we are at the juxtaposition now where people are looking down, not up. the more they look down through technology, are we losing the connectivity to the game itself? it's a great name and it's done on an event basis and that's why the nfl has been able to grow their revenue streams as much as they have. x as we get more and more diverse media forms, it seems the benefit of all sports, but nfl more than any other, is the immediacy of the audience it rings. it doesn't just get men in the demographic where they spend. they have to watch the commercials because they can't shifted.

is that at risk when you look at being mobile? >> i think so. if you look at all the sponsors' ads at levi stadium -- and isn't it oxymoronic that it's a non-tech company with the naming rights? a lot of those are retail bratwurst in the stadium? that is what fans care about. but we know the nfl has been to silicon valley visiting companies like google. what are they talking about? >> they are talking about the color was that flows through his words and veins, which we have talked about before. it is green. they are trying to figure out how to we open up new revenue streams without creating cannibalization of where that $27 billion is coming from? that's the challenge and the other challenge which is

somewhat underscore here is the way other leagues are growing. the nba has grown internationally, soccer is already there. the nfl has problems in terms of international growth. >> will we ever see nfl games streamed on youtube? >> i think the likelihood is we will see nfl games in every way, shape or form we can get it, you will have it on your glasses, you will have it when you're dreaming. >> the nfl is a leader in sports, but is it the leader in technology? >> every other league would argue that they are the leader in technology. i just had a conversation this morning -- technology hasn't really figured out sports yet. we have not seen the true power of technology and sports coming together. a lot of this is more pr than new revenue and new monetization streams. we will see more of it in the next few years.

>> how motivated is the nfl to mess with the formula that has gotten them so much green? >> they are motivated by the way their players get paid, the acquisition of teams, the value of teams moving from millions to hundreds of millions to billions. they are motive i did by the green that flows through the veins of their business programs and they will look at every way, shape or form they can do generate non-cannibalizing revenues. >> i'm always struck by how willing the league is to change rules and make the changes in the game itself in ways baseball would never imagine with things like the designated hitter rule, decades into its existence it is still controversial. does that suggest nfl owners and managers embrace things differently than other sports? >> if you look at the ownerships

into sports -- look at steve ballmer coming into the nba and other sports. these fortunes have been built on tech, so i think you will see tech become a major factor. but the cautionary tale here is the game itself. many of these games have wrought generations together. if you screw too much with the equation, you can blow it. we talked about the empire of the nfl. empires have fallen. i'm not suggesting the nfl is close to falling, but you have to be careful about screwing up the game itself. >> always great to have you here on our show. thank you so much. coming up on our special look at the nfl's media empire, there is a new player on the sidelines and that is microsoft. we will look at how the software giant is hoping to play a major role in the game. ♪

>> welcome back to "bloomberg west." i'm emily chang. the nfl season starts tomorrow, and today we are looking at this league's dominance in a special we are calling "the nfl's media empire." one key to keeping ratings high is to keep the stars healthy. can michael crabtree ever beat richard sherman to the end zone? the nfl is betting technology can answer some of those questions. they recently partnered with zebra technology to install quarter sized sensors under players shoulder pads to track their every move. or more on how the technology works and how it is used, i'm joined by cory johnson -- how does it work is to mark where are the sensors and what can they tell us? asked we put a quarter sized

sensor in football players shoulder pads. one on each shoulder. they can tell you everything about their speed and movement, 25 times a second. so very quickly. >> how can fans benefit from this and how do coaches and players benefit from this? >> we like to ask ourselves all of time why isn't that guy "why can't the quarterback see the open receiver? i think we will be able to see that through lines and speed trails. >> espn sports does this wonderful stuff where they illustrate the play by taking the player making everyone else hold still. are you going to see different graphics and will they be universal across all the

networks? >> we have worked on the graphics. this is one of those things that is very new. when you track that subsequent movement, a bunch of new information becomes available. the push of an offensive line, what grouping of five people can make that push better than anyone else in the league. a new graphic that we will be able to see. >> we were talking to the microsoft surface guys about their deal with the nfl, i would imagine you will have data coaches have never been able to see before. >> we do and we work with several teams in practice. i think for the first time ever we will see microscopically how peyton manning behaves in the game and in practice, which will be fun for the coaches and it will help extend the careers of athletes because we can help them repair and recover after a game faster if you know their

level of exertion. >> any potential integration with fantasy football sports? that sounds like it would be a good business play. >> i'm a big fantasy football player myself, so i would love to see that. the nfl brings the best games to the world and ultimately this all about the fans. i think in the future you will see all kinds of things. >> what about colleges? i watch a lot of these technologies and things go from the nfl to a division i school. >> in this case, we probably start at the nfl and go back to division i. it will be interesting to see michael crabtree and his career and now you're looking for the next michael crabtree. you will be able to see that and see how those people behave in microseconds. >> interesting stuff. are there other uses of this

technology? >> this is rfid technology and works on ultra wide and, which is a different frequency than the wi-fi in your home but the same idea. the information travels through the air very quickly and from one of movement happens on the field to when you can see it on broadcast is about two seconds. very quickly. in the play, we can put a speed trail by day player and tell you how fast he's going or the closing distance of a defender. >> interesting. >> thank you so much. we will be watching for more information on your sensors on this deal. it's time for the bwest byte were we focus on one number that tells a whole lot. >> we were talking about samsung, 43% is samsung's

command of the total profits in the mobilephone business last year, nearly equal to their industry revenues. apple, with just 35% of revenues had 61% of the industry's profit. samsung is selling more phones, but apple is making more money. >> i did not quite put two and two together but samsung market share since 2010 has quadrupled and apple has not budge. >> it is interesting that in a growing market, they've taken over for a lot of other people. apple would argue they have done it on the back of stolen patents. but every iteration of each product is important on some level. >> we will be taking a deep dive on samsung versus apple on a big mobile special tomorrow. thank you all for watching this edition of "bloomberg west." all the latest headlines all the time when your phone, tablet and bloomberg.com.

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