♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight >> we have got the gospel from a profit. i'm emily chang. this is "bloomberg west." she also sounding the alarm on how vulnerable companies are two cyber threats. and streaming content has been a life raft for tivo. i will be speaking with the ceo. and looking to build a car.

all of that ahead on "bloomberg west." and the report is considered a bible in this industry. there is a lot of stuff today. the future will see everything from more drones to india emerging as the world's grows fastest smartphone market. is it all about mobile? joining me to plow through and take a deeper dive into the report is sarah frier and other guests. sarah, break it down. >> she takes these things may say happening and breaks it down. >> spend hours on our phone. >> three hours on our phone. for this and the world population on the internet.

there are things that are just incredible. just from a growth perspective we want to see more advertising happening on mobile. it is still young. she says the consumer internet has been very quickly tabulated by apps and games. there are still sectors of the economy that have not been touched by the internet yet. >> one of the interesting things you pointed out is users are reimagining of the internet as curators. jonathan, is that something you are saying? >> people are creating something every time they are retelling a story. they are essentially a curator. friends see that they made an

editorial choice and recommended the content. everyone is a curator in some way. >> 12 and or and facebook users are stagnating -- on twitter and facebook, users are stagnating. what do you think about that? >> it is the maturing of platforms that have been around for some time. i don't think that growth over the long-term is going to stop anytime soon. >> messaging apps of the bright spots. >> right. >> real-time communication. a live video. that is that people are starting to talk about right now. one of the interesting things is we started with a appointment viewing via television. you sat down to watch some content. we are gone into the last five

years of on-demand for you watch 30 hours of "game of thrones" over the space of a few days. we are seeing a swing back to the desire for appointment viewing and the community experience that brings to video content in particular. >> a big shout out to mobile videos. a big shout out for 100 million monthly users. they are watching live video on your platform. >> that is right. it has been quite the ride. we are just about four years old. the growth of that community and the passion and the engagement of the community around live video experience with regard to video games has in really astonishing. one aspect of a larger trend which is a gathering of people who want to engage in a community type of experience

around real-time content. >> do you buy her whole idea that shooting vertical video will take off? >> that -- turn your phone when taking a family video here and when you're editing the family video, they're not parts going back like this. now snapchat and these things are going back to that. it doesn't work great if you are planning to do it on your big screen tv. if you're on your phone every day -- >> their advertising page is people who don't have to turn their phones to see in at are more likely to go through the whole thing. for twitch come in terms of vertical video -- >> we are sort of equally skating towards equally divided between a laptop sort of pc experience at also, people are

watching on the big screen televisions as well. we have 25 million mobile in stalls. we have a growing user base. it is a tough challenge to solve too great with a mobile experience. it translates in both environments. we certainly have both. you mentioned them mobile messaging part of this year to you talked about how apps will turn into contact -- content p it we say doing instant articles. you have seen other struggling. where does something like nuzzle fit in? >> there's a lot going on. there's so much going on. for us nuzzle is -- as long as there is content out there nuzzle users are ok.

it is interesting. facebook and snap chat are trying to be more platform. we are hearing that outside of the u.s., a lot of people are getting news give messaging platforms as well. one allows you to share news. in asia, people are actually -- platforms like line of becoming platforms. people are playing games or discovery news via those platforms. >> what is interesting to me -- i love nuzzle. i use it every day. twitter should be doing what nuzzle is doing. what about shutting you out, like they have done with others? jonathan: i think everybody should be doing what nuzzle is doing. what we are doing is tried to solve people's overloads -- overload problems. we are trying to get people the

stuff they really need to know about without doing the work. i think everybody should be trying to solve that problem. i think it is a big problem. >> how do you plan to make money out of it? >> we're not there yet. we are still a six person company who only launched a year ago. emily: so, quickly, what do you guys think, matthew and sarah, about the world that mary meeker has imagined? matthew: people to understand the media consumption environment, that users are in now, people that really understand what a mobile strategy is for your company particularly if you are in media, social media, video. if you do not have a very serious mobile strategy, looking out over the mid-to long-term, you are too late. emily: which companies are doing that? sarah: we have seen extreme growth.

especially in asia. you mentioned wechat. it is not just mobile. it is global. india is a market to be looking at right now, and we have all of these new communities of people coming on and using phones for the first time. if the jing is at the center of their experience, so what can be added to those messaging apps -- messaging is at the center of their experience, so what can be added to those messaging apps? emily: thank you so much for joining us on "bloomberg west." the annual google conference is less than 24 hours away, and if they keep tradition, the next version will start with an "m," after last year's version of lollipop. make no mistake, google

operating system still dominates. new research shows android has nearly 80% of the market, but it is down ever so slightly from one year ago, and apple thinks the times are turning. tim cook said they continue to see more switchers, meaning android users are going to the other side, switching to iphone. another problem, goldman sachs estimates that some of the android came from apple. and what about switching to bing? all things to keep in mind as google mania kicks off. apple pouring more fuel on speculation that it is working on a car. speaking at the conference in rancho

palos verdes, just enough to keep us asking for more. and starting this summer, new chevy models, including the 2016 having access to the apple parkway and the android auto. here is their director of ecosystems. director: we realize that people use smart phones in their cars all of the time, and it is on us to find a safer way, a better way to integrate with that. emily: but gm is not the first out of the gate. hyundai said the 2015 sonata will be the first connected android two android auto. up next, mary meeker says phones are giving hackers easy access to your data. what tech companies and others can do -- giving hackers easy access to your data.

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emily: we turn now to another a story we are following, palo alto companies, record revenue. growing by 56% in the third quarter, and they have also announced they are acquiring a company which provides security for cloud applications.

the terms of the deal were not disclosed. and staying with security, kleiner perkins associate mary meeker's says cyberattacks will not be slowing down anytime soon. shocker. meeker calls for more professionals, saying that many relied on third parties to protect from attack, so what does this reveal about what is going on with cyber security. michael chertoff, who also served as secretary of the department of security, is here. 70% of the breaches are not detected by the companies. secretary chertoff: i believe that, because a lot of companies do not know what is going on in their network. in fact, many networks do not even know who is on their network, though there is to know who is on it and what is happening on it. emily: the doj just awarded a big contract to a company here in silicon valley.

how big of a deal is that, to be outsourcing to a private tech company? secretary chertoff: a lot of the i.t. functions, the government does not have the ability internally to manage this. this is a way of deploying a collaborative tool that is secure across an agency. emily: how does the government make sure they are secure enough? secretary chertoff: they do have something, so there are certain criteria, but it is also on the contractor to make sure they are doing the right thing, and, of course, we saw in the snowden event you had a contractor who deployed snowden, and snowden used his access to steal a lot of information. emily: the information stolen from the irs website, can this company help, or private tech firms? secretary chertoff: the irs has a deeper problem. it was the harvesting of data

that was collected over a period of time. what i understand is that they mailed in refund requests or sent in refund requests, using data they had received from a variety of sources, including social media, meaning people put it on themselves, not realizing they were getting criminals some of the keys to getting at their identities, so i think it is more than just a single contractor or single program. you have to build an ecosystem of security start to finish. emily: a ceo recently said he things we're going to see google, ibm, big companies like hp buying these companies. who are the targets? secretary chertoff: it is a hot area. you may have big enterprise and smaller companies because they want to round off their offering. and this is an area, if i can

use a cliche, there is a lot of disruption, and some of the key out of the box can shift the entire landscape, no you are wise to believe it is not one and done, you buy something and are finished. it is a dynamic process. as we at death to it, they do. emily: and cloud services are making it harder for law enforcement to access evidence. how do we find a balance between law enforcement being able to do its job and protecting ourselves? secretary chertoff: some of this has to deal with laws and policies, and i think we want to be where companies can have robust cyber security, and the government, if they use appropriate legal process, whether it is a court order or something else, to require that the data be turned over, but you do not want to weekend security and make it easy for the government, and nor do you want to make it impossible for the government if they have appropriate legal authority. emily: the nsa phone data collection program, there he divided on this issue at the senate.

how do you see this playing out, and how do you want it played out? secretary chertoff: i think there was something pretty close -- there was a compromise. here is what would be a tragedy. you would be a tragedy to let the whole program shut down, because people cannot agree on a perfect solution, because as we speak, this is the twill we used to track people who might be communicating with isis back in the middle east or with other terrorists, somewhere in the united states, and if we go dark on this, and people lose their lives, i guarantee you there will be a lot of work that afterwards. emily: ok, we are still waiting for the senate to make their decision on this. michael chertoff, it was good to have you here. secretary chertoff: good to be on. emily: a hard-fought victory for spacex. after two years and a $60 million certification process, the elon musk rocket can now compete for military launches.

boeing and lockheed martin have had a lock on this market up until now with their joint venture, but spacex thinks it can do the job for less. using a falcon nine as opposed to the atlas five from boeing lockheed, they may save extreme -- may save $60 million on a mission. it could be as soon as next month. next, tivo gaining the most subscribers in eight years, and now the company has some new items in the pipeline. and bigger than most of the s&p 500? details, next. ♪

emily: a story we are watching as soon as tomorrow, broad announcing it is being taken over a singapore-based maker of semi conductors, that according to those with knowledge of the matter. they provide short range connections for devices with a market value of over $32 billion, and if the acquisition happens, it would be the biggest ever in the semi conductor he -- semi conductor industry. and the daily byte, today's number $70 billion. that is the massive valuation that bank of america merrill lynch analysts estimate google's youtube is worth on its own. that would make the internet video site worth 85%, bigger than some of the biggest businesses out there hewlett-packard, time warner all with market caps below that.

youtube is a big asset deserving of a big valuation. get this. in the time it to me to read this story, some 150 hours of video were just uploaded to youtube. now, to tivo, the original dvr device. they are offering service beyond dvr and cable tv, appealing to cord cutters with its service that records programs with an hd antenna and offering programs within the tivo user interface. there is an increase of 27% in users year over year. here with me is tom rogers, the tivo ceo. joining us from new york, thank you for being here. tom rogers: thank you for having me. emily: what is the strategy to keep growing in the age of disruption in the cable industry

and how we are all consuming content? tom rogers: well, your little bite on youtube said it all. it is all about getting content from traditional tv sources from recording, which we have done for a long time, and then streaming services, netflix, hulu, being able to get all of that on demand. the issue is you have so much content coming of people from so many ways, there is real chaos for the consumer. what our position is how do you put all that together easily and elegantly so you only need one remote, one user experience, one way to search across everything, no matter what you're trying to wind to get on tv, one way it is filtered for your personal interest and taste. and a way to get all video down to you so every time you turn on the tv, it is sitting there for

you. that is the tivo proposition. emily: let's talk about what is happening. charter buying time warner cable. is this good for consumers? is this good for business? john: consolidation will continue to be a fact of life. we have been and evangelist for, look, is a better way for people to have a television experience. you can make a great interface and do not need to have all of these boxes. we have become the leaders in the cable industry of providing the software for operators to be able to put together the likes of traditional channels, like bloomberg, with new streaming services, like a netflix, and put it all together into a single way you can find whatever you want, get it to whatever mobile device you want for your personal taste however you want, but our hope is that consolidation does that, and obviously the big players have a

way to go. emily: i will be interested to see that. tom rogers, ceo of tivo, thanks so much, and thanks for watching. ♪

. charlie: tonight, we continue our exploration of the magnificent human brain with the look of the neurobiology of parenting. neurobiologists are increasingly beginning to understand the brain's influence on parental behavior. we understand now that the active caring for children can activate special narrow circuitry that forms a parenting network in the brain. researchers have identified cells that have researched the nurturing and neglect of children and has revealed new insight about gender roles and