corporate issuer, this would be a good time to get in. >> thank you so much. we will be back on the markets again in 30 minutes. ♪ live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> america remembers. 13 years after 9/11, we will be speaking to the ceo of a firm devastated by the attacks. congress weighs in while lawmakers think about president obama's plan to fight islamic extremists. >> pharrell williams talks to bloomberg about extending his brand. everything from fragrance to fashion. welcome to "market makers."

today, a somber day here in new york and across the country. we are marking 13 years since the attacks of september 11. the names of nearly 3000 people areed on that horrible day being read at what was known for years ago as ground zero. -- four years ago as ground zero. the relief fund ended up donating more than 180 -- $180 million to families of victims. howard, welcome. when we think about people who have made such a commitment to the cause, your name is at the top. 13 years later, how do you keep this going? >> the key is to drive close to those families. i was walking around the firm this morning and i walked into a young man.

george was his dad. a great guy. i see his son -- >> how old is he? >> in his young 20's. i was taking my son for his hest day of kindergarten and has changed. we keep the family's clothes and turn the state into something positive and something beautiful. families close. >> how many of the families are still there? >> just under 100 left. we had 960 in new york. we had secretaries without bosses and our corporate bond division. after december 2001, 150 people in new york.

now, just over a thousand around the world. we are bigger and stronger and growing. >> this is a bigger charity. you're not just giving two causes associated with 9/11. you're giving to her daughter's fund, the scarlet fund. >> we are going to take a moment of silence in honor of those passengers on united flight 93 which crashed in the field in shanksville, pennsylvania. [no audio] >> a moment of silence for the victims of the passengers -- the passengers of united flight 93.

thanis has become more 9/11 charities. >> the first five years, we have promised if we could rebuild the company, we would give 25% of everything we made to the families. ended up being far more than anyone expected. we tried to take care of a --aster >> it's a public funds now. >> it is big. over $12aise hopefully million. we have lots of celebrities who tweet and help us and we try to raise as much money as we can. this labor day, i went down to the hospital where we saw guys who lost limbs in afghanistan and iraq. we take care of their families. their moms and dads fly to their side. they stay there. they don't have the job that will pay them later, so we pay

their mortgage for six months. >> where do you think that comes from? i work on the floor of the stock exchange for a number of years and there is such a strong support for family. there was an incredible importance placed on family. why do you think that is? >> people take for granted so many things in their lives. the take for granted the people next to the network. -- next to them at work. would they say i love the people i work with? if you took them all away, you would cry from now till the end of the year. these people are your family. and youly love them love your family and those are the things that are most important to you. once you understand that, you rally around the menu help them. -- you rally around them and you

help them. we have about 150 charities around the world that we take care of. -- youmy employees today ask employees, you agree to make more money and all of them waved their pay? >> think of all that you've built. what do you want your legacy to be? >> that's a good question. that i'm a human being. that the events of september 11 allowed me to express that i'm a human being. that i care about people and humanity. >> have you changed your goals? when you look at the broader market right now in the tough times that have been had, are

you starting to say, you know what, i'm big enough. >> it's always good to be goldman sachs. that sounds nice. we are good at what we are good at. bear stearns try to be someone else. put them in a bad spot. got exposed them and they killed in the process. we are kiev being who we are. key at being who we are. we continue to just stay with what we are good at and be very good at it. how is it to be a finance company today opposed to the financial crisis? >> it is challenging. challenge creates opportunity because it's not the same for everybody. you're in a fixed income market

and they are buying all the pots. now, they are announcing that they will buy less bonds. lows.lity is at historic these are tough markets to be successful. , he and time i go out she is saying there is no business to be done. >> bgc in the real estate we made it w deeply profitable. want to have a big, giant -- once you have a big, giant infrastructure, you can take the people who were successful there and bring them onto your infrastructure. it will be gigantically successful for us because we already have the infrastructure. >> you have the benefit of being in a real estate recovery.

it does not look like volumes are picking up anything. -- picking up any time soon. >> we will do extremely well with the business. when you're on your own, you're never going to get there. >> maybe people will start trading. headed over to her office later today. thank you so much. if there is a hero since 9/11 who has done so much for the families, it's you. >> a real honor. thank you so much for joining us. >> this is the first anniversary since the opening of the national september 11 a moral and museum. -- september 11 a moral and museum. memorial and11 museum. >> what is the right history? >> we are a strong handful of people who tried to take away --

there were a strong handful of people who tried to take away your child's right to believe in what they want to believe and associate with whomever they want to associate with and be in charge of their own destiny. whenorld came to our aid this cowardly act took place. democracy has come out stronger because of this than it was going into it. this is a lesson we are going to have to keep relearning. if you don't remember history, you are doomed to repeat it. that is clearly true here. -- terroristsorld have an easier route to go th an they did before because they can find out things and communicate and get information.

the challenges of society are greater than they've ever been. our own mike bloomberg speaking on the 9/11 memorial and museum. >> president asking for help from the arab world to defeat islamic extremists. >> radioshack needs a lifeline. looking for more capital after sales keep plunging. ♪

president obama laid out an extensive u.s. strategy to counter the rise of islamic state last night. now, he needs support from congress. let's bring in peter cook. he is on capitol hill. we also have our white house correspondent, phil mattingly. you've been talking to house republicans there. how does it look? meeting ofst at a house republicans over in the

capitol building. the general sense i get is that there is support in general for the president's strategy and his decision to go after the islamic state. there is going to be an effort to change some aspects of his request, particularly with regard to training and equipping syrian rebels. he wants more oversight of that. there is not uniform support for this. i just heard from michele bachmann, strong words from the minnesota congresswoman, criticizing the president's proposal saying it does not go far enough. we are either in it to win or we are out. suggesting she and others would support a much more comprehensive american involvement in dealing with isis. even potentially boots on the ground. she is more of an outlier. the president's proposal. >> that is michele bachmann's thoughts. how important is congressional support?

>> they want congress to be behind him. we without thereby in. their buy in.ve they do not believe they need congressional authorization to do anything when it comes to expanding the airstrikes. or to move forward with the expansion in the military mission in general. they are under the impression that they have all the authorization they need. if they need some help from congress when it comes to funding, training and mobilization. when it comes to the actual military operations going on in iraq, they don't think they need congress on all. would probablyhy beg to differ. he says lawmakers stand ready to work with the president. is this a really bipartisan effort? >> this is an election season as

well. the reality is that democrats and republicans don't want to cast a tough vote on anything in this moment in time. support forartisan taking on the islamic threat and doing something beyond what the white house has done so far. there is more support for the active airstrikes in syria. the training of rebels is controversial. you have to pay for it as well. the president is going to get something from congress, but it may not be the full throated support that he was looking for initially. >> how much is this going to cost? phil mentioned the authorization here for training those at syrian rebels. the original white house basel, $500 million -- white house proposal, $500 million for fiscal year 15. , each day inn

august, those airstrikes cost $7.5 million. it is not cheap. this will not come cheap. they have money set aside for afghanistan. they hope to pull money from that as opposed to having to appropriate new money. >> what about president obama's legacy? his remaining time in office? will it be spent as a war president? >> he is a wartime president. theaw a complete shift in posture of this president when it comes to these issues. i was talking to people on his campaign staff in 2008. this is a speech he never wanted to give. he was of the world dedicated to pulling u.s. forces out of. this is a long-term endeavor. something that will likely go through his administration into the next administration. -- thatident feeling

shifted last night. it will be interesting to watch how a sitting war president going into new action in the middle east operates over the next few years. >> thank you very much for that. very interesting and we will continue to cover this developing story. >> when we return, one of matt miller's favorite stores. radioshack. sales are down 20%. the quarterly loss is worse than expected. radioshack needs more money. what do they need to do to turn it around? ♪

>> radioshack is running out of time. the struggling electronics

retailer is working with creditors to get more couple. -- more capital. tell us how this capital will keep radioshack -- >> you have to buy more remote-controlled cars. i buy a lot of remote-controlled vehicles at radioshack. that's why i think they should themselves "the drone zone." >> that is the least of their problems. please tell us about this capital injection. >> we don't know yet if it's happening. standard general may be teaming

them to offer financing. same firm that also infused capital into american apparel. it has a taste for these struggling retailers. what is it going to do for radioshack? i talked to the credit analyst about that very question. , if they getat more time, there is a possibility that they can have a turnaround strategy. however, with the new ceo, the turnaround strategy has been in place now for about a year and we have not seen any credible evidence that that turnaround strategy has worked. that leads me to believe that there is more here to be done and you need a lot more time to turn the ship around. you need a lot more runway in terms of liquidity. >> money equals time for this retailer.

will that strategy even actually work? all of her atg isi he said nupathe and new signage, does that really change a retailer fundamentally? if you were going to create a retailer today, would you create a radioshack? >> no, but you also would not create a jcpenney. >> there is the question of, will you get a return on your investment? even if the store does not up?eed, will stock go will the stores survive is another question. there is a lot of doubt about that. even if it gets this infusion of capital, if it's still burning through cash, those comparable sales fell by 20%.

humming from that low of a base, yes, it does not take much confidence basis to increase things, but you have to keep people coming into the store. >> do these kinds of investors actually care long-term about a real turnaround or do they simply want the stock to go up and then they get out? >> if you're looking for speaker wire or cell phone batteries -- >> most of the things it is selling are tied to phones. more than half of its sales are tied to phones. most people are not buying their phones from radioshack. they are buying it from the carrier stores themselves. if you look at where people are buying stuff, this is about intentions.

radioshack come a 1.1% of people plan to buy the next phones from radioshack. we will be back in just a few. ♪

but live from bloomberg headquarters in new york -- >> live from the overhead doors in new york, this is "market makers" with erik schatzker and 70 role. >> welcome back. i'm excited. >> i'm excited, too. but you are excited for a different reason. >> you want to know who i'm talking about, ben silverman. y? the cousin of a very exciting our coming up. one of the most romantic producers. he ran nbc for two years before leaving to partner with the one and only media mobile barry diller.

he is here with us to share a preview of what he's got going on. welcome. great to have you here. >> i'm so psyched to be here. >> what are you doing right now? making programming across all different platforms. we are definitely a content first company. we are doing shows for nbc. we had a bear grill show on the you guysat hopefully watched. deion sanders, ben stiller, some great guests. >> ben stiller, in full survivor mode? >> yes, jumping shirtless off of a large waterfall -- really good stuff. and when make programs for netflix and for yahoo! and these new media platforms. they are investing in the best talent and content for these new platforms. >> who do you want to make product for? is it more interesting for you to be selling stuff to nbc or netflix echo or do you just care

about the highest bidder? terms of the value chain, the backend, the ownership for these producers, it still most valuable to have the hit on the broadcast channel. part of that is because you can still sell off of the broadcast channel to other syndication. it's the holy grail of syndication. >> law and order on nbc, now i can watch it on tnt, usa a show foru make hbo, you will not put it on netflix later. >> exactly, because they are about exclusivity and closing the walls around their content. they are trying to buy out the content in perpetuity and not exploit the secondary windows and alternative channels. if you make a hit for nbc, you have the chance to sell it off of nbc to cable, to broadcast indication, all the way down the path. and you make a lot more episodes. >> and by the way, that is on the backend. makes money up front

as well. you have a sponsored driven -- sponsored driven model. >> yes, we make more than traditional cable. but on the other side, netflix and hbo are spending a lot more on the production budget. their investment is definitely on screen in big ticket -- you know, game of thrones probably season, youire know, one episode cost the entire season of bear grills. just doing the math, it is twice the revenue against twice as many episodes. it is still a better model for the producer. i would rather be in netflix's shoes as the platform, though. >> are you talking about putting bear grills in the game of thrones? >> no, no. >> yeah, no. but in everything, we are talking about game of thrones

and making a sitcom. thrones.ame of it's a sitcom. but it's not like him of thrones exactly. >> is that like trying to re-create tech -- sex in the city after sex and the city? >> we love in hollywood making a great idea and then repackaging it into something worse. >> are you working with jason bateman? >> we are. we have a relationship with them on a little company we build together called dumb dumb. that was their idea. know comedy. we were making some advertisements for some different brand of the rig -- in the digital space. we also made the movie together called manson. it is through electives and it is a partnership and we are continuing to expand that relationship. we just developed a great piece of material with

will arnett that he brought to us. we are loving expanding that relationship. >> walked me through how you are partnering with advertisers. you are putting products into your programming? constantly working with the advertising community around our content. every time someone brings a tab, it's an advertisement? >> he was not too fond of doing this, but i snuck a in there. we had a good partnership with subway. , wehows like bear grills have a lot of walmart products related to bears products in walmart. if you can go there and buy a gerber knife. >> exactly, all of that. you can see the interconnection and they help to underwrite the cost in exchange. or with college humor, our web comedy platform, one of the best and funniest anywhere, we will actually do custom advertising with our creative team at

college humor for different brand who can then not only live on the site in terms of expressing their media, getting their messages out, but can have messages that are consistent with the college humor audience from the college humor creative team. >> all of these platforms seem amazing for smaller studios, production companies, for --rtups, but what is this and what does this consolidation mean for you? >> it is a little scary. bloomberg.o be on >> so are we. >> what we are building is gigantic. the like, look, we are in -- we are indeed, we are small. but it's the best kind of i ndie. all a little scary that this creativity and voices in the hands of very few companies. very few companies means you inl get a lot less diversity

what you see from a content respecter. at the end of the day, someone at the top of the company is going to have a prison from which all these things get expressed. that makes me nervous. -- is going to have a prism from which all of these things get expressed. that makes me nervous. >> and i don't want to put you on the spot, but that is where barry diller is very big in that sense. >> we are a little company, and other companies are little companies like us. we do not own broadcast or cable channels. we are not in any of those. >> not at that level. >> right. >> and the tagline wherever one likes to say "content is king," is it really keen when there are only a few guys on top? when makes me nervous there is distribution in just a few hands. and it makes me nervous about how the deals will be structured. they will do blanket deals across all of their outlets.

and then one of the great things about the way content is king works in a competitive landscape is you create real business is out of those pieces of content. i kill myself to go make visit -- biggest loser in web property, not just a television property. >> why was it so hard? >> because the rights were controlled by the network. and within the rights that they control, they did not want to exploit those rights necessarily come up because they were busy doing other things. network want't the more eyes, more interest? if i'm watching the biggest loser on tv and i can start to fall in love with those characters through a web platform, isn't that good for the network echo -- for the network? >> the concern at the time was whether the web network was competing with my broadcast channel. that debate gets eliminated when the company that controls those rights said, no, we are not doing it. it is a blanket rule.

i think you will hurt entrepreneurship within the content business and you will hurt the ability for independence to kill for every penny and go the extra mile to generate opportunities that may have been left on the table. i think that can hurt not all of the independent sector, but the entrepreneurial sector as well. >> it hurts innovation, and it hurts the little guy, basically. that is what we will be talking about. >> in the next hour. we have to go to break. ben silverman, if you like and now, you will love him in the next hour. you have 60 minutes together. and we will be joined by another great guy, ryan kavanaugh, the ceo of relativity media. >> and it's not just for fashionistas. we will tell you why new york fashion week is such a big deal for investors, other than the hot models. ♪

>> today, new york fashion week

comes to an end. as the curtain closes over 500 runway shows, we look at how important event is to investors. here to help us break it down is gilbert harrison, a founder and chairman of an investment bank posted on -- focus on retail. you were just telling us about the next ordinary event he went to last night in central park, a hologram presentation pilot ralph lauren -- by ralph lauren. amazing and sexy, but how will it sell more sweaters? >> it is still an image. we talk about why investors are interested in fashion week. it is because people are coming from all over the world to see what we are producing in the u.s. fashion week as energy. from the famous designers like ralph and tommy and calvin and so on, there are hundreds of smaller designers. there are new trends that are developing from them. and there are new businesses that will grow. they could grow into the next ralph lauren or whatever. wonderonder -- >> i

where just downstairs we have gap, h&m, stores where you can get great design at low cost. of thesethe expenses major labels make so much sense? the parties, the extravagance. all in marketing. and remember, fashion goes downward. it starts at the top and then everyone goes and copies. and today's world, you can get copies within days or weeks. you need the energy. you need the designs to come from the top people, because that is who sets the trends. >> but then from an investor standpoint, who do you want to invest in, the copycat who does not have the expenses, or the guy at the top? >> you don't know how long a copycat will last. and the copycat could develop its own brand eventually and go to the top. >> i figure you could go with either one, as long as right now you are not in the middle,

right? because the high-end luxury designers are doing well. the low-end is doing well. but you've got this swath of people in the middle. you worked with american eagle, for example, abercrombie & fitch -- >> that is totally different. that is because of what the consumer is doing, the teenage consumer is doing with their iphone. there is no loyalty anymore. you saw abercrombie is getting rid of its logo slowly. they can go to h&m. but i think that all of this will change eventually. developeders have what they are looking at. number one, the first thing they do is worry about their iphone. that is the first bill they pay. the second is athletic shoes, one of the reasons foot locker is doing so well. they are spending $200 million on these fashion shoes. apparel comes last.

it is what is going on right now. >> you have seen designers come and go over the years. say with the barrier so low, it's the perfect time for the designers. but is it really? what do they need to have? but many have talent, but if they do not have the money behind them and -- >> many have talent, but they do not have the money behind them and the rabbi to help them grow their career, stalling ind up their career. >> what kind of rabbi are you talking about echo >> one example, a gray guy took a liking to him and held his career. michael kors has done phenomenally well and was around chou tookrs and silas him under his wing. and he has made this where it is today. the same thing with tory burch. say whatever you want about her husband, chris. for 40 of his experience years or 30 years in the apparel business, he helped her. >> have the influencers changed?

years ago, when we only had the pages of vogue to look through, and a mentor was the decision-maker -- anna wintour was the decision-maker. >> it absolutely changes the landscape come under question. investors are always looking for who the new one is. and they will continue to. >> who is the new one? i willve some ideas, but not sell you on television. -- tell you on television. >> not all in the design stars, but the people whose opinions matter? >> i think the new president of sacks, she has the best fashion taste i've ever seen. runser from moscow who zoom, phenomenal. others not to say that like bloomingdale's, i mean, these are the people making the decisions even more than anna,

because they are buying the product and putting it in the store. >> does it surprise you to see stores like the gap having a presence in fashion? >> i don't understand how they could. do they just have a number of different kind of khakis? >> i did not see the show. but i saw the tamil tigers show. they took over the -- the tommy hilfiger show. they took over the 66th street area. -- heain, hebrew because grew because of the same people that are helping michael kors today. investors with fashion week, is it important to them? >> very much so. they are looking for the trend, trying to decide where to put the money. they are trying to invest in five or six small companies instead of just one, because you never know which designer will be the one to grow. -- theso take a look

funds take a look at all these things as well. but many of these companies are private. >> when you went to the shows this last week, how many people there sitting next to you were in fashion and how many people were -- >> business people. >> business people. did you see a lot more hedge fund guys or bc guys hanging around? -- vc guys hanging around? >> not as many as you might think. the people that are designers, investors, you will see people like me looking for how the new person will develop, how the old person is looking. part, it's the buyers that are there. if the press that is there. and a lot of movie stars and fashionistas that just want to attend. i'm not sure what they do, but they are there. >> do you see the great opportunity in athletic leisure where -- leisure where?

it is what people are in on the streets everyday. >> look, you and i are in ties. you go anyplace else outside new york and maybe washington, how many people do you see wearing tight? forget about the business people, it's all casual. >> i'm glad neither of you are wearing yoga pants. [laughter] much. so >> it was a pleasure. >> gilbert harrison, clearly he's had a great week. >> mef, not just a performer. he -- coming up, not just a performer. he is a brand. stay with us. ♪

>> music mobile -- mobile pharrell williams is having a massive season.

he launched a fragrance and is getting ready to host the voice on nbc, all while continuing to bruce -- produce music. him about howth he's building an empire and using technology to do it. >> he collaborated with huge artists like jay-z, britney spears, justin timberlake -- >> hold on. you are saying is more of a collaborator then pick old? but i don't know about it. lately, he's all over the place. andesigned jewelry sunglasses. and yet come out with sportswear for adidas. his latest is a fragrance. >> is it for guys? >> it for guys and girls, but the name of it is called "girl."

he is appealing to the masses, but it is called girl. >> kind of like ck-1 back in the day. >> you might like it. i asked him what makes him say yes to these projects. take a look. you are not really collaborating if you're not learning from a master. that is the most important part to me. i want to work with the best of the best, so they can teach me. i want to learn. >> the most recent thing he learned is how to make a cent -- rall, but in a very for -- pharrell way. it is funky and pricey, $130. >> did you view him as someone more inside the business, or more of a brand ambassador? >> he is a brand ambassador, but very intentional about these things. he wants to learn, but he's also

an artist. and he had some interesting things to say about how music crosses over to the art world. and he also said he's taking a very different approach from britney, justin bieber, taylor swift. they were just blamed for elizabeth arden's flagging sales. >> when i think of celebrity fragrances, i think of britney. didn't she have one? i'm sure j. lo probably had one. >> they make a lot of money, and the celebrities make a lot of money. but pharrell takes a very different approach. and he is also launching twitters by biden. he's helping them with their by button. button. his exposure is increasing, and probably so will sales. >> i'm going to start wearing a hat more often on set. >> you are? >> yeah. >> thank you so much.

we will be back in just a moment. ben silverman is back. stay here. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> we've got a lot to cover. the new hollywood. yesterday's stars of the silver screen wouldn't recognize the place. welcome back to market makers. i am stephanie ruhle. we have a very exciting our coming up, even more exciting than the last one. why? because ben silverman is here with me talking about the new hollywood. i am thrilled to have you here.

we have some of your homeboys with us. we have to hold off and get to news feeded before -- because before we get to all the fun and l.a., we have to get to the business news around the world. radioshack is trying to raise capital. the company is in talk with ubs and its second-biggest shareholder. salesshock -- radioshack plunged last year. offered $90 million for a casino in atlantic city build.st $2.2 billion to rebel was the third atlantic city casino to close this year. in scotland, a setback for those who want to break away from the u.k. a new poll shows that no has a lead.nt

the world bank of scotland says they will move their operations out of scotland in the event of a yes vote. now let's have some fun. we have a lot to talk about with been and our next guest is a front of beds, ryan kavanaugh. ceo ofhe founder and relativity media, one of hollywood's most successful movie producers and financiers. branching out to television, sports and digitals and with that could come in ipo. , ben, welcome. what does the new hollywood look like? what is your new role? >> that's a big question. first of all, thank you for having me today. i should say this morning, because it is 4:00 a.m. in honolulu.

what does the new hollywood look like? i will answer from the movie level. all other studios but us are generally owned by very large fiscally conservative fortune 100 companies. when you look at where how they would was and where it started, , with ther studio exception of maybe some small independents that are not on the radar, but every major studio is owned by a fortune 100 company. ago, hollywood was about box office. there was no tv, no dvd, no netflix, no ancillary market. everything was judged on what the movie cost and what box office did and that's how the entire industry has been built and how it's been reported on. for example, i did ask you what a movie did last weekend or what was the highest grossing movie of all time, and 99% of people

would say avatar or titanic and they would know that. fact is that's irrelevant to the movie business today. box officeater, film is about 20% of the pie. because these companies, warner bros. cooccur mount, foxx, universal, are all owned by huge companies like news corp. or viacom, and so they don't actually have to report profit. they only report box office. because they are not a big enough piece of the corporation's pie, you never really see what movies do. into our own studio, we financed about 200 maybes and we got a look behind the curtain. we found that movies are run today the same way they were 100 years ago. nothing has changed. it's a legacy system. it's good for the studios but

unfortunate for business people. return on investment doesn't factor into movies. oryou read a movie did hundred million dollars at the box office and they make it sound success will, you actually don't know what that means. it's 20% of the pie. you don't know what the cost of the movie was or what they are paying and participation to the actors. >> but hasn't that always been the case with film finance? trying to figure out how that waterfall works has always been a maze. >> i know that's one of the fromplines ryan brought the financial world. but i am curious, as you go through that process, where does the creativity come in, the gut, the part of you who's an old-style mogul whose green because something

bradley cooper pitched his heart out to you with an idea? creativity match with the fiscal discipline you're talking about? so great -- >> that's a great question. >> that is a good question. good job, ben. >> thank you, stephanie. ryan, you should know that stephanie is on her blackberry more than you and i are. you must have no life. >> i have none. >> when we look of financial models, we saw how it looked in the old world. we moved into today's world and said this doesn't work. if we are going to be a studio -- and we are now the largest , we have tostudio understand that box office is a small piece of the pie.

a movie,ook at making there are two parts, right? a common nation of creative and financial. you have to side, look at financial and we say ok, how much money are we putting into the movie. who is our market? and then what is the downstream revenue. what is our electronic, our dvd, our ultimate profitability? we believe and say this movie will hit profitability. that's a financial check. then you have to put the gut check in, which is that the creative team jumps on and we make sure the script and the concept and the making and the process is the best it can be. whether it's the fighter or limitless or more goals -- of valor, it'st about getting in there and

making it for the right price, making sure the movie makes financial sense and that we have a decent chance of making a , and then finding that gut and saying this is going to be something different like act of valor. we are going to make something different, use real navy seals, make something audiences have never seen before. a lot of people that work at relativity are willing to push the limits and push the boundaries and willing to make decisions that other people are not making, and we break the formula. formula, butthe your formula works. could you ever consider selling yourself to one of the big places like a time warner? crossed my mind. i started the company myself 10 years ago. it really is a culture.

one of the questions people ask me, particularly investors, is how do you get all the divisions of your company together. for time warner, for example, division operates completely independently and does whatever they want to do. they have the tv company on the side and maybe some other companies. our infrastructures about leveraging content. it's not just saying the movie is the most important. a 10 minute piece of digital content is just important as a $50 million hour and a half movie. we really make sure everybody works together in a culture of maximizing content in every medium. that's something i don't think we could do -- >> is that what you wanted to ?uy makers >> that is a much bigger

question. the maker full-screen has to do with our short form content. alternately, we believe -- a studio., we are not we are a content creator. to job is to deliver content the consumer in whatever form they want. consumers no that longer distinguish between longform, short form, and television. they want to see what they want to see when they want to see it. they don't care if it cost us $100 million or $.30. they want what they want when they want it. working to have a relationship with the content creators and to deliver to our consumer effectively all the content they want. do you think you will be able

to find a movie makers through her company like maker and draw the next $50 million movie maker from those making sure form content? an incubator? >> i don't think it will come for maker now because maker is now owned by disney and the content creators got nothing in the dl and the benefits all went to the executives at disney -- >> of course you're going to say that. >> that being said, at the end , these are burgeoning filmmakers and tv creators. these are the guys at 17 years old in their garages with a camera and equipment who are literally willing to go spend 200, 300, 400, $500 to create something they think is great. but do you think that some of this is too much? , look at your newest project

sex bots. maybe people want to watch this. should they? are you proud of this? contentnow, there is you are proud of and then there is content that builds the company. i have a lot of shareholders --ch w category does this fall into? >> i think it is a clever idea. there is a lot of research that couples are more honest after sex. this is very simple. , nobodygo in a boxe watches the sex, and then they talk to their his therapist. it's one of 37 series we have.

there are some that i am very proud of and there are others that make money. this isnot say something i am going to be on stage thanking my mom and dad for but it has worked overseas -- >> you found the show in london, right? found thet's how you office. >> are you looking overseas? i know international markets are important and you have been building in india and china. where is the creativity? is it about finding ideas or repurpose in your ideas into those markets? >> it's both. ben, you know this business better than anybody. you have built two amazing models on it and i am just trying to copy you. but you get to a level where you really have to look wide and broad to find good content that

people are going to watch. it's both looking at international formats that work that we can bring near and at announcedime, we just a joint venture with india where ofwill be doing a lot programming for the indian market. we just announced a deal with mexico. we have a deal with the third-largest broadcaster, china. at the same time, we are looking content.e for good >> you're talking about all these big announcements. how about an ipo announcement? >> i cannot give you an ipo announcement. what i can say is we're hoping and looking toward an ipo in the next year plus. jeffries is our banker and it's on our radar, for sure. >> what do you think you are worth?

think we are worth $5 trillion. i am joking. look, the markets will tell. the good news for us is the way we look at ourselves as we are not a studio and we make a very clear. we are a content creator with studio capabilities and a tech company. within the next year, as things unveil, we will own directly 30-50,000,000 eyeballs that we will have direct relationships with. have a big advertising company taking a lot of brands away from the omnicom's of the world and coming to work rectally with us. that ultimately allows us to interface with the consumers we own the eyeballs of and to deliver content. i know we will be a company no one has ever seen before. there is only one public company that is us you the oh, lions

studio, whichs a is lions gate. their model is very different from ours. we really hope the market will see the opportunity and owning the consumer and being able to deliver to them. works out, i think the spin on should be -- if so box works out, i think the spinoff should be cougar cave. shouldhink next time we be with you next to the waves. going to stick with hollywood when we come back. coming up, how apple became such

a big player in tinseltown. and a star is born. these days they are not just discovered at the soda fountain. you know where they are found. youtube. and you know where we are streaming, apple tv and amazon buyer. stay with us. ♪

>> obviously a huge week for tim cook and apple. there is a lot of excitement about the new iphones and b iwatch. cupertino is 350 miles from hollywood, but apple is still one of the biggest players there these days. buddy to bring in our

from bloomberg businessweek who was at the apple announcement the other day. what was your reaction? >> i thought it was a huge event. to bring out two new phones and a watch is a lot more than the is a, like, here modification for the iphone and an upgrade to the mac processor. it really felt like tim cook's show. and remember, these are products of have been developed long after steve jobs. we are out of the jobs pipeline and starting to see the apple that cook is leading. a coole is obviously brand. surely, they won movie stars using their product on tv. ofapple has made billions dollars off hollywood. i am including the music is nice with that. but they're integrated potter --

integrated product of tablets and phones was the killer. it drove sales but not as much revenue as hollywood would like. i have always felt that although they are a creative led company perspective, they are a hard company to work with from a partnership perspective. >> because they always win. >> when we were at nbc, one of the big arguments was on variable pricing. it's very different than the relationship we had with retailers. are as aggressive as the biggest retailers in the world. >> you just brought up the music industry. obviously, you saw what the music industry did and what happened to sales, labels, distributors, and there hasn't been quite the same rush to put the content on the way it happened with music for that reason, right? taking apple winds up

the money. >> there is a whole all a card thing.-- a la carte we want to get an amount of money guaranteed on a per episode basis whereas itunes is obviously subject to the ultimate a la carte decisions. the apple tv product is fantastic. it is absolutely how i think netflix andccessing other streaming platforms, and i am surprised they are not even doing more in that. why wasn't that this september? >> first of all, i think apple likes to separate some of their announcements for pr purposes to be a mobilegoing to event. we will do another event about mac tv and a third about

computers. my understanding is the technology is all in place. it is legal issues that prevent the full integration we have been talking about for quite some time but haven't quite seen. >> the content element of what they need to negotiate out for it is clearly something they are doing or trying to do were failing at doing. but on the other side, just the watch the vast majority of content on television, that is where i want to see it. >> don't you watch more stuff now that you have a smart phone? but i amh more stuff watching the vast majority through my television. i have a big, beautiful hdtv. >> yes, i watch way more stuff on my big beautiful tv, but when i am sitting in a subway or in the back of a car, i find myself watching stuff on the smartphone. i am not watching a 30 minute

show or a 50 minute show. i am grabbing news, maybe picking a bloomberg. you talk about your big tv. does it matter what that big tv is plugged into? >> no, and that is what has changed. i am eagerly buying something from itunes for television as i am streaming netflix or turning on a football game tonight. i callproblem is what the babysitter problem. and somebody tv comes over who wants to watch something and you have to say ok, change the mpeg. that content is on this device. sports is over here. eventually, this all has to come together. >> there are a lot of stakeholders, everyone from contest on one side -- >> pretty much the whole

industry. >> right. so, i stopped wearing a watch because my phone provides the accurate time around. second from the beauty of your watch, the utility of time telling is more effective through your smartphone. do we need another device? why couldn't the smartphone just be doing what this watch is doing? >> i think that's a valid question and i think when it comes to smart watches, even after seeing what apple was showing -- and of course, they didn't show everything. this is a product that is not going to be shown -- sold until 2015, i still haven't seen the killer app for the watch. the watch still needs to be tethered to your phone. isting alerts on your wrist nice. tracking your heart rate, nice. ashing quite as compelling -- >> do people really want to track their heart rate? we have more obese people in

this country than ever. >> i am a skeptic when it comes to health data. to commercial.o eat less and exercise more. we will be back into. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> welcome back to a really special day on "market makers." i am stephanie ruhle. my partner, erik schatzker, is out today. my social justice he prolific television -- my special guest is a prolific television producer and chairman of his own production house. i want to get inside the mind of ben silverman. lightning round -- in one sentence, what makes a good tv show? >> i would like to think quality.

"the office," "jane the virgin," what do they have in common? quality. in the shows themselves, strong and emotional unfulfilling, but i also recognize the population trend and the fact that we have a huge market that can be served in the general market manner. >> is there a show you wish you were involved in that you are not? >> probably "the voice." they did a great job and it is fun and family. justgame of thrones" i love it. >> do you think it has an expiration date? idol" five years ago was what i was watching every week with my kids and it has no place for me now. does well because

the talent in the chairs continually update and bring a lot to it and they have become more famous and successful. that is an interesting point of what "the voice" is.an around the world it is doing well. >> what is your favorite tv show of all time? >> "mash." >> really? is there a show you would like to remake? stars,"of the network "different strokes"? > "candid camera" with mayim bialik hosting. rights,ut and got the and every tuesday night on tv land. i do like some of those classic television shows, but the most fun is picking a classic story and reinventing it. i love doing "the tudors," and we are doing a show about marco polo.

i like his classic stories told in unique ways and telling them in and up to date 21st century way. >> can you make a sophisticated tv show for grownups are on does ittelevision, or have to be in the world of hbo and showtime? >> i think network programmers want the same qualitative level. they have some restrictions today are an advertising platform so they cannot show nudity or be as aggressive with language. people look for realness, showing real life in adult situations, but they can make the kind of programming that would appeal to you and i. >> i'm not going to let you pick barry diller -- who is a media exec who is killing it right now? throwing the ball down and docking in every way. taking disney and turning it into this next generation with as dealvel deal and luc

and espn, he has got some of the best brands, and he keeps building it. he is not afraid to make those deals and investments. i like the combination of staying within what you are good at that being afraid to go buy something and take a swing. >> word association. twitter. >> not on it. >> why? >> i am so concerned as a new have avoid turning three in october, and a pregnant wife. i'm already addicted to my information flow around my direct correlated work stuff on e-mail that as i experiment with my social platform, it is really bad for my home life. >> stick with word association. big 4 networks. >> don't count them out. >> don't count them out? >> nothing better than live,

sports, golden globes. there is a future in broadcast -- >> speaking of sports and don't l.unt them out, roger goodel >> wow, i don't know the guy, don't really want to. you said the casinos selling for one/25 of what it cost to build. somebody at that casino, as they are shutting down and firing andyone, grab that tape said "i think i can monetize." i don't think there is a disconnect between them going bankrupt the same week -- >> i love that conspiracy. >> got to be stronger. ridiculous, discussing. i don't think anyone is being strong enough. you cannot hit a woman. "oh,annot have context -- she is pregnant, worse than a regular woman." you cannot hit a woman -- >> pregnant woman is a regular

woman. all right, jimmy fallon. >> love him. >> the best? >> he is wonderful. there is a lot of talent -- kimmel and fallon and seth meyers are so strong but fallon is such a sweetie. >> jeff zucker. >> i am not as into malaysian air as i am into this hour of tv, let's just put it this way. i'm looking for news and information in depth across and i wish we could see that more. it was interesting to see the vice deal with the investment in networks, and everyone thought that maybe vice was going to be bought by time warner to replace hln> that didn't happen and it will be interesting to see what happens with headline news. >> youtube -- flash in the pan

or the future? >> i think it is the present. i don't think it is a flash in the pan at all. it will be interesting to see if they go after more high end programming, which is rumored that rumored bright now, and compete against the players who so far they have shied away from. >> when we come back, we will talk more about the secrets of becoming a youtube star and be speaking to one of the biggest, and she is only 19. ben and i will sit here and feel unsuccessful. ♪

>> i realized you don't want end today,ers" to but at 12:00 p.m., bloomberg tv gets even better. the top of" airs at the hour and my man adam johnson is taking us deep. >> we are looking backwards to plan ahead. there are a number of seasonal patterns that are playing out in the s&p 500 and believe it or -- >> history is just repeating itself? was it whos -- who said that history doesn't necessarily repeat itself but it does rhyme? i think that was mark twain. we're looking at the rhyming in history. suffice to say, you don't need to be that concerned about the selling we have seen, and we

will put it into context and try to come up with a trade or 2 to figure it out. >> no better way to enjoy your lunch, help you make a little money. adam johnson, 12:00 today, "money clip." when we come back, the simple guide to starting. on youtube, 19-year-old will be here to tell us how she did it. ♪

>> welcome back to "market makers." i am stephanie ruhle, joined today by ben silverman. let's talk about teenagers. they used to talk about going to hollywood and becoming a big star. stardom can 10 -- be as close as youtube. >> i decided to dedicate an entire video to stuff i used to say in middle school. cuss words.y

yeah, we have the right to be partners with people sitting next to us. >> andrea is with us today. someone who turns youtube celebrities into concert stars. ben silverman is still with us. he recently invested in the company. at 19 years old, you have become a megastar, but on your twitter told me you say "my mom never to get on social media. lesson is, never listen to your parents." >> it is a little bit of a job for the little serious, because at first she was like "you have got to be careful," but now she is on twitter, she is on instagram, she is all about it. >> but don't you have to be careful? >> oh, definitely.

you don't want to put too much on the internet. >> how did you get involved? >> my friends introduced me to meredith. backers big actors -- and believers in what meredith is doing, and ryan has a massive social media platform and has invested a lot of time in. i'm interested to hear from meredith, what is your vision? you are taking stars from youtube and a sickly trying to -- basically trying to create a livenation-type concert venue? >> for the past four years we have been putting on these large tours and festivals. we take artists like andrea and put them on the road and give them a platform to meet their fans in real life. >> what is andrea doing in that venue? you are not singing, dancing, putting on a play. how does that work?

what do the fans of you get in a real world experience? >> today is the first day we are announcing that andrea is headlining our next tour. we are going to begin development asap. it will be something very fan -interactive, similar to her channel, what has made her popular. we are going to translate that to the live stage and we begin now. >> andrea, what is your vision for it? >> i want there to be a lot of fan interaction because they are the reason i am going to be doing this whole thing. , bringing people on stage, all that good stuff. >> how do you integrate this into your life? do you go to your school, andrea? >> i go to online school right now. >> everything is online. >> what influenced you? you are only 19, but in your formative stage as an early teenager, what were you watching? online or traditional tv shows?

>> i watched a lot of netflix with my parents. one of the biggest shows are used to watch in the comedy, similar to what i like to do, is "the office." >> all right! that's what she said. we love you, andrea. keep watching it. >> how do you make money from this? >> a couple different ways. before videos are on the side of the videos, when people click those you got a couple cents, or whatever it is, and there was also grand -- brand deals. "if you talk about this, we will give you x amount of money." >> does that hurt your authenticity? paid mel, but swiffer to talk about the swiffer. >> i make sure any brand deals

is something i would want to promote. fer?ou don't use swif >> i do use it. >> how old are the people going to these youtube festivals? >> our prime demographic, 13 to 17-year-old females. did you ask what we are doing at the events? >> yeah. >> it is a range. it has been called digital vaudeville. there is a mixture of live music, traditional concerts, skits, and very fast pace, short sets, mimicking what they do online with add scrolling. >> how do you target who is going to be part of this tour? how does one figure out that this is a teen star, this one isn't so hot? ago, got involved 4 years

the early days of u2, and we got to know ever -- the early days and we got a head start on everybody. cycle. -- he has been this cycle. in addition to that, we have our areivals where 80 stars appearing and performing and we get to gauge the interest and appetite in real life and see who is moving the needle for this audience. andrea, her fans are super hard-core. need you to help us understand, how did you get so big? if you think about traditional musicians and actors, they have entire social media teams figuring out how to get them followers. how did you go from one follower to a million? >> honestly, i am trying to figure that out as well. i think a lot of it is in true to who you are, content and doing what you want to do, not just like, "i will throw this

online because that will get views." you have to be true to what you are. that is what people like. >> how long did it take to get a million followers? months ago, but i started on youtube in 2009, so it has been a while. >> how do you sell the tickets, meredith? >> resell them through our -- we sell them through -- our vip's are through an independent ticketing site. generalist or ticketmaster. we are not using traditional methods -- >> is that an advantage because you can use these social platforms that your artists are already participating in to talk to the consumer directly? >> yeah, it is major. we are disrupting the market in a lot of ways because we are able to move a significant amount of tickets through our own networks. >> five years from now when a

big-time network boss decides to call you up and say "you are ready for prime time," would you say yes if you got the call to start in the next "sex and the city," "office" -- oldie but a" an goodie for her. >> they were all friends. it was a wall name show. would you turn your back on this? >> i don't think i will ever completely abandon you to -- youtube, but i want to expand. being an actress is my goal. >> i sense a holding deal on bloomberg tv right now. >> is youtube going to take the place of what music studios did? is going to -- -- is it going to be where to find the next backstreet boys? >> i love that she is naming the

boy bands she loves. >> we are bringing it into this live venue. becomet of ways we have exactly that. we have the wonderful opportunity to put on many concerts for these artists and it is their very first time on stage. >> do you want to create a record label? >> we are having conversations but i'm not sure that is what i want to sell. it might be something we used to promote or make the live shows better. the music industry is not what it used to be. that is where i got my start 10 years ago. i -- touring is a healthier business then selling records. >> are you filming the tours? >> 100%. we have a lot of exciting initiatives we are producing. earlier thisurs

year that we shot behind the scenes, documentary-style series. >> andrea, do you have competition? when i put a tv show on 8:00 on a tuesday night, i am looking at every other show on tv that tuesday night at 8:00. >> that is a great question -- are you looking at other youtube stars as your competition, saying "damn, i wish i did that"? >> i would not necessarily call it competition because the youtube community is like one big -- >> i don't buy it. >> i don't buy that. >> wait until you are 25. that is a young girl's optimism. >> "mean girls" is about girls in high school. >> i think it is about motivation. it motivates you to work harder. >> congratulations. you are clearly making it happen. person i have to

give a huge thanks to today. ben, absolutely great having you here. ben silverman, what an hour. erik schatzker will be back tomorrow, but i hope you'll come back again. >> anytime. what a joy and pleasure to be with you today, steph. e-mailslot of tweets an loving your hair. to come back tomorrow. we are going to speak about the state of the shopping mall. they are changing the way they do business because some people fear that millenials are just so over it. not me. i love an orange julius. we will take you "on the markets," help you make a little dough. scarlet fu has more. >> stocks are falling for the third time in four days, resuming the design after moving higher yesterday. geographical -- geopolitical

tensions continue to simmer in the background. in today's options inside, we have the lead options strategist at trading block with us from chicago. we have political news, whether it is the european union announcing the second round of sanctions against russia, the ruble falling. volatility seems to be coming back a little bit. >> coming back a little bit is the key word there. holding above the 12 level. 2000 to the upside on the s&p 500. we will see which way it breaks. either the market breaks above 2000 or the volatility collapses a little. >> i want to focus on specific names here. apple ships currently trading just below $100 -- apple shares currently trading below $100. consumers are continuing to digest the latest news on the applets unveiled, the

watch and the apple pay system. apple has come off of its record highs and is struggling for a little bit of direction here as we head into the september -- the date of products go on sale. post-event on tuesday we saw it go above 103. fullback, trading down towards 97 -- pull back, trading down towards 97. come in alatility has lot post-the event. i think after the event, people are digesting, seeing which way apple goes. >> speaking of a stock that has broken out, gopro hitting a new high today. it has jumped more than 180% since the ipo in late june. you are a bit skeptical, though. >> just based on what you just mentioned, the fact that the

stock has been up that much since the ipo, up 30% since j.p. morgan downgraded five days ago. the stock traded up towards 71 today. it did pull back. i kind of like that price action. buying the 73 calls, bringing in about $.40 -- that is my potential profit. risking about $.60. gopro might not go much further from here. >> thank you so much. ♪

>> welcome to "market makers "money cli -- welcome to "money" where we tie together the best business news. the calls for roger goodell to step down. q brings in a former fbi chief to investigate. is not your normal ipo. it is not your normal e-commerce site, either. if scotland votes yes on independence, the answer to the currency question becomes complicated. end of the stories of the passwe