>> live from pier three in san francisco, welcome to "bloomberg west" we cover innovation, technology and the future of is this. i'm cory johnson in for emily chang. stocks hitting a new record with the dow jones and s&p closing at

all-time highs. home depot says 53 million e-mail addresses were taken in the recent data breach. the company is notifying affected customers and says the files did not contain passwords to my credit card numbers or other sensitive information. criminals use a third-party vendor name and password to enter the perimeter of home depot's network. hackers did not get access to the sales devices. and the amazon unveils a voice controlled interactive speaker that can do everything from late music to give a weather forecast. it cost $199. customers have to request an invitation to get one. cbs embracing digital and a big way, launching a 24-hour news channel. it's also supplying sony programs for a web only service. >> we are obviously part of the digital age and there is digital revolution going on. cbs's primarily a content company and we are producing great content in entertainment, news and sports and we want to

make it accessible to everyone. >> cbs debuted cbs all access, offering its programming online for six dollars a month. from one media giant to another, the blockbusters keep coming from disney. in the fourth quarter, sales were up 7% and net income was up to 1.5 billion will stop "guardians of the galaxy helped profits double and the company is still selling all of the frozen merchandise. themepark revenue up 20%, but profits fell thanks to higher costs for sports programming. trish regan spoke with the disney chairman and ceo, bob iger. >> frozen is quite a phenomenon that has reverberated cross our

businesses and also with our brand. when you make a movie that is that good, when you make a movie that is the number one animated film of all time and it resonates in many different ways, not only in the united states, but all over the world, it lists everything with the company and it's a thrilling thing and something we are extremely proud of the top >> you guys are number one in ratings excluding sports. what's driving the viewership here? >> we have some strong returning shows. "scandal" is one of them. we have added some strong shows. that has helped abc a lot, the stability on the schedule. we are proud of what they have accomplished this season and we've seen other networks down from last year, when you exclude the sports from the c three rating and we have held our own all stop we have new shows coming to the schedule that have not been put on yet and we feel

good about them. >> can you give us a preview? >> there are a bunch of them. i'm not going to get into all of them now. too many other things to think about. >> let's talk about ad sales. ad sales have been somewhat weak. we have witnesses in digital and you see a lot of companies announcing internet tv services. any plans of going direct to the consumer with a disney channel offering in the u.s.? >> we have a strong presence in digital platforms. espn has probably led the way. i don't think anyone has done a better job by going digital then

espn stop in terms of taking what is a channel currently offered as part of the multi-channeled on the lead going to the consumer in a singular fashion, we don't have current plans to do that all stop a lot has been written about the demise of the bundle, but if you take stock, you can conclude while there has an erosion, it's been relatively small. people are getting north of a hundred channels for about $65 a month and there's a lot more variety in that package and lot more quality. it still considered a pretty good value. we are going to do what we can to strengthen that value because it creates value for us. on the other hand, we've led the way in many respects by taking our product to julie. there's a way to do that and not compete with yourself in a sense you can create different

offerings and different timing to market and basically completely different products and that what we are doing all stop in some cases, to enhance the value of the bundle or to strengthen our engagement with our customers. you mentioned the balance and the difficulty in terms of you've got these transmission trees that are very lucrative are you, so if you go fully digital, you are hitting the cable companies. it's a tight rope that you need to walk as you see this transition. what is it going to look like 10 or 15 years out?

you mentioned so much has been written about the demise of the bundled cable system, but ultimately where will we be in a decade? >> i've been in the business 40 years and i've seen more change in the last five then i saw in my first dirty five years. it is an extremely dynamic marketplace, driven by tremendous advances in digital and mobile technology in particular. there's more competition in the marketplace and in some places we are creating that competition for ourselves. but there are a lot more offerings for consumers. on another side, there's never been a better time for content creators or intellectual property owners in the sense that there are so many more places to take your product or distributed sony more ways. the way to look at it, because i

can't predict what it's going to look like in five years or 10 years, it's going to continue to evolve all stop we've seen more evolution in the nature of the multi-channeled bundle than evolution. there's no reason to do things that precipitated demise. if it ends up raking apart, which we are not predicting, no company is going to be better positioned to take advantage than we are because people will buy disney, they will buy espn and who knows what we will create with star wars and marvel. we have multiple opportunities to create products and reach the consumer directly and we are not concerned about that world either. it might be a lucrative environment for us to him we've got a multi channel bundle creating tremendous value for us and great value for the consumer.

there's no reason to do anything rash or to do anything that damages it for the long term. bikes are hbo and cbs making a mistake? >> i don't want to sound critical. they are to very different products. hbo is a strong brand with great products. if anyone has an ability to go direct, it is hbo. i would put it espn and disney in that category. i view it as an experiment. it remains to be seen if they will end up with a better business than the one they have or not stop cbs is a completely different thing will stop i can't assess what they have in mind or what they are doing, but i'm not suggesting we are critical of it. we will take a wait and see approach. >> that was tom eiger. up next, the hot button issue for immigration and president obama's promised to take executive action on reforms of necessary.

how does this impact the tech industry and its demands for high skilled workers? ♪

>> i'm cory johnson and this is "bloomberg west." today, we are looking out one of the most pressing issues in technology -- immigration reform. even with republicans racking up huge wins in the election, president obama is, think action on immigration by executive order if necessary. there's the expansion of the visa program granted to skilled foreign workers will stop it's currently cap at the $5,000 year. i spoke with the new executive director of ford u.s., an advocacy group backed by mark zuckerberg and many others set up to advance reform and other issues. i asked what he thought about the president doing this on his own if he must.

>> we are really proud of the work worse and hoping to get a senate bill done with broad bipartisan support, we think it is absolutely critical that there is a legislative solution. the permanent solution sony people need. we think there are things the president can do in the meantime that are meaningful but temporary. he said he's going to do those things and he said he would do it before the end of the year. >> you've got your feet on the ground and there's a bill that passed the senate that could come out and house but speaker boehner won't allow a vote. david axelrod said the president should promise not to go by executive order. do you think that approach has any chance in the current

congress? >> i think this beaker made it clear he's not going to put that bill on the floor. we think it's disappointing that the house could not get a bill done the we are encouraged by broad support around the country. three in four americans would like to see. there are steps that the president can take through his legal authority and then it is our job to lay the foundation for the permanent legislative solution. whether that's in the next couple of months or a year from now, we want it soon. every day congress doesn't act, its entrepreneurs who have to leave the country and create jobs elsewhere. there is an urgent need to act, so we want to see as much as we can right now. like there is an urgent need to act because no one is acting. what do you want the president

to do before the year is out? asked we think he can do more by doing more than one thing. we think there are things he can do to help emily's being separated. we think there are things he can do to help companies by clearing the green card back log. we want to see all that stuff. we are for a comprehensive legislative solution. >> let's unpack that. comprehensive always sounds good, but comprehensive is the problem in congress right now. there are republicans who would like to expand and help the skilled workers come here and there are people already here that are not allowed to be citizens. finding that together in one bill seems to be the political problem for top do you accept the approach of unpacking that and going for piecemeal reform? i would say there's a lot of problems in d.c. and i think actually an approach where you

do these things together -- it's borne out in the conversations we have had in washington and you see the polling. when you put these things together, it is a compromise and people want people to compromise. we are focused on you have this incredibly broad coalition and that's how this thing becomes so popular. whether that was last year when the senate did one big bill or when the house was talking about doing three or four bills in short succession, we are agnostic on that. the reason immigration reform is going to be successful is that it is when on so many issues. >> why is h-1b so important on the technological issues? >> the things that you hear so

much is when people are out there trying to create jobs, finding talent is important. this is a program creating a lot of jobs not just from people coming here but native warned americans. we think that's absolutely critical. this country has always had this amazing advantage. we accept the best and the brightest will stop we think it can be expanded to do a better job. that is absolutely critical. >> i have no idea what the answer is. why is this issue so important to technology people more than other industries? >> i think it's a couple of things. at a moral level, there is this idea that our country should be a meritocracy. it's a country where the best

and brightest can come here and a very act of immigration is entrepreneurial. 40% of the fortune 500 companies were founded immigrants or the children of immigrants. at a moral level, at an american level and economic level, it hits home to 70 people. we have had 300,000 different people take action in support of immigration reform. i think it speaks to the energy you are talking about. >> maybe it's a peculiar or exaggerated point of view. thank you very much. is technology homeland security is using to protect the borders, drones and radar systems, that's next on "bloomberg west." ♪

>> welcome back. technology is playing a new vital role in the u.s. customs and border protection. drones, radar and heat sensors are all part of the operations to curb illegal immigration. matt miller went to the border to check it out will stop >> military style drones, surveillance towers, night vision goggles. securing nearly 2000 miles along the us-mexico border is an

enormous task combining infrastructure, and now technology. >> this is where the predator comes in handy. we've got these truck mounted cameras that do the same thing. >> it is homeland security's virtual border protection full top groups being tracked in real-time across the open desert in southern arizona, remote and rugged terrain full top >> this is a group of smugglers the camera had tracked and the border patrol came out here. >> how long have you guys been in the desert? >> 10 days will stop >> 120 foot towers outfitted with sensors that allow border patrol agent to detect and record the

movements of smugglers. radar and cameras are mounted to detect, track and identify those crossing the border will stop the towers monitor the area lined with massive tenses. >> these fences like this, it can range from 18 to 26 feet. you could have seconds or minutes to make that apprehension. that's in addition to the fences, it allows an agent time to respond will stop >> eta is then wirelessly routed to the central control room. >> we've got radar that will tell us if the craft is in the air. >> high quality long-range day cameras that have thermal imager's. >> this camera here costs $19 million.

>> and eyes are in the sky as predator drone's fly 18,000 feet above the border. >> our drones here fly strictly along the border. they can stay in the air for a long time. >> at the end of the day, does the technology work and is it worth the huge price? >> are we supporting them or are they supporting us? that would be cost effective. >> that is hard to gauge because we don't know we don't know. we don't know how many folks get away. >> president obama is promising bold action.

we will talk to a texas congressman with an important role on this issue, next. ♪

>> one of the most famous lines in hollywood history. >> the truth? you can't handle the truth. >> a few good men catapulted aaron sorkin from an actor to celebrated screenwriter, producer, and conflicted character creator. he went on to bring us the west wing, moneyball, the social network, and the newsroom on hbo. if the steve jobs biopic coming soon. joining me today on studio 1.0,