emily: it has changed the way we watch video. predefined going viral. challenged government, and launched the career of justin bieber. youtube has more than one billion users uploading 300 hours of video every minute. it all started a decade ago with a trip to the zoo. one of the founders says he is not quite done changing the way we are entertained. on studio 1.0, youtube cofounder and former ceo, check early.

chad: thanks for having me. emily: in 2005, you activated the url. chad: on valentine's day. so romantic. emily: describe the last 10 years. for me, it has surpassed expectations. we were trying to solve a problem for ourselves and our friends. how do you share videos sitting on your desktop? despite observing our own problems and coming up with a simple way to re-encode the videos, allow people to share videos on the web, unlock the potential for everybody else. emily: the first video on youtube was one of you guys going to the zoo. >> they have really, really long trunks. chad: not a cat video, but not bad. emily: 19 million views. chad: that video and many others

we were uploading internally to test the system. shortly after that, we received a few other uploads run the world. emily: who is that? chad: jawed, steve chen. leave before we launched the service or raise funding. he went back to stanford. journeye and steve's after that, riding the wave of video and dealing with growth. emily: the university of pennsylvania. what kind of kid were you? chad: not the most academic child. i was curious about things. i enjoyed our. -- art. growing up, you do not need to be an engineer.

you just need to be someone with ideas. you have to follow through in creating something that others can relate to. art and startups are not too different. emily: how did you end up in silicon valley? chad: i read about a small pilotp that had a palm program called paypal. i was recently out of college and trying to decide what to do. on their website, they said they were looking for a web designer. i had a design background. luckily for me, they responded. a week later, i was here in silicon valley working for them. emily: the rest is history. chad: the rest is history, but i needed to find a place to live. 1999, ioved out here in had to sleep on someone's porch. emily: there were some people coming here. it, you designed

the first paypal logo they still use to this day. chad: i think they have changed it, but yes. do you see your design in the logo today? it is an iteration of what you did, right? chad: of course. what determines how everyone in the paypal mafia went their separate ways? chad: i would meet up with steve and other engineers for coffee on university avenue. everyone had a digital camera. this was right before cameras took off in cell phones. people had video files on their desktop they could not share. that was really what inspired us. smartphones before and high-speed internet was the norm, how difficult was this to get off the ground?

chad: because we knew nothing about video, we were not scared. same thing with paypal and payments. if we realized how much fraud and how many other hoops we would have to jump through in the finance industry, we probably would never have started the project. same thing with video, dealing with bandwidth and streaming issues. because of that, we were able to hit the video market at the right time. when people were getting broadband, devices in their hands. we were in the right place at the right time. emily: you sold to google the next year. right? only 18 months. for $1.65 billion. chad: it was a rocket ship. it continued to be this journey where we were holding on for our lives. even after we became more of a part of google. things accelerated. we had more resources.

at the time we sold, we had 67 people in the company. we had two or three engineers, i.t. guys that would run around the country, three data centers. we did not have the luxury of plugging into amazon web services. you actually had to build your own machines. that, we were threatening both sides of the industry. wanted to microsoft retain their control. but the traditional media world, studios and labels, they wanted to retain control of distribution. they were accusing us of not doing the right things around copyrights, when we were building more tools than any of our competitors and more policies from day one that anybody else to deal with the problems and eventually create

solutions for them. and monetize them. the music industry earns billions of dollars off of youtube on annual basis. all these people were looking at us. we had no other choice, really. than to be acquired by someone. us, we were lucky enough to be acquired by google, who took a chance on us. youtube would probably not be here today or what it is today without their support. emily: you felt you had to sell? we had had no doubt if tried to go alone, we would have eventually been crushed by lawsuits or not being able to scale. we would have loved to remain independent. to go ipo and remain independent. but other forces did not allow us to. emily: what was alike

transitioning to google? things surge ae at told us when they first met us is, continue your culture. we just care about growth. let us know if anyone gets in the way. emily: there was a question about how youtube would make money. what was so hard about it? ♪

emily: until recently, there was a question about how youtube would make money. what was so hard about building it into a business? chad: people were looking for this big answer. there has to be something other than another video on top of a video. at the end of the day, it is all about targeting, providing choice to the viewer. there are more than enough ways

to monetize the site than traditional means of advertising. people are always looking for a big answer. emily: you stepped down as ceo in 2010. why did you leave? chad: i just wanted new challenges. i felt youtube was in great hands. we had really seen things through in the business. there were all these steps when they first acquired us. but when i left, i thought it had really turned into a true business. emily: how much do you think youtube is handicapped by not having the founders? done the rightas thing and will continue to do the right thing. what they're dealing with today is more competition. video is ubiquitous now. at the end of the day, it is just about the business model. emily: what do you mean by that? chad: there are different means of people paying and consuming video. youtube has been sort of

one-dimensional in advertising. emily: what other business model should they be implementing? chad: you have different forms of v.o.d. it is giving the tools directly to creators and letting them determine how to monetize content. if they want to charge subscribers and how much. if they're going to charge subscribers, what type of content? there are other models after that point to advertising. so i think it is more about options for the creators and providing tools. helping people create better content. they tried to do that with the studios, but i think there are more tools for the regular creator to create content. emily: you think youtube should be charging consumers to watch certain videos? chad: i think that is an option that they have. emily: and paying creators more. youtube has always been criticized for not paying creators enough. chad: i think youtube should be

more transparent with terms and not make it a negotiation. i think it should be a level playing ground. part of the reason i started youtube was to democratize video. , traditional studios should get better deals. emily: what is a fair percentage? chad: who knows. it is up to them. emily: more than 50? chad: buzz feed and facebook are doing native video. youtube in future of this world where original content is king and sony places to find it? chad: it is a good thing because it means more advertisers will move into online video. facebook and twitter doing means more money for everyone. ,mily: the ceo of facebook now

do you ever pick up the phone and talk to each other? chad: we trade e-mails from time to time. she did a great job at google and will do a great job at youtube. we have a chance to meet from time to time. i have not been back to the youtube offices in a while. i went back to grab lunch. they are continuing to expand their offices. it is always a treat to see that. but just to speak with her in person, she is focused on the right things. i have told her the same things i told you. you have to go back to your core. it is about providing tools to creators. supporting the community. some of the reasons why i left, i did not want to stick around to be the token founder that will talk about how he started youtube. it was about creating tools and opportunities for people to create better content. with: you recently sparred mark cuban online, who claimed

youtube could not get anything right. you tweeted, registering domain $20, selling domain $1.65 billion. going mark cuban is still bitter, priceless. howdy respond to critics that say youtube had more potential? chad: mark likes to talk a lot. it was a little tweak i thought he could take. are a lot of there people that have opinions. for the most part, i think people should focus on their own businesses. focus on creating opportunities for themselves instead of complaining about someone else. at the end of the day, sometimes it comes down to jealousy. missing that opportunity that he had with broadcasting.com. he had a lot of the right ideas, but it was ahead of its time. andink youtube will provide

continue to grow. the audience is larger than ever. emily: do you have a favorite cat video? chad: there are too many. emily: i have a favorite called surprise kitty. you know it. chad: i know them all. emily: it is estimated you made more than $300 million in the deal. has money and success changed you? chad: i do not think so. i still get up every day and go to work. i feel there are still opportunities to solve albums -- problems for people. emily: you are at kim and kanye west's engagement. they were not happy with you. what happened? ♪

mixbit.et's talk about

chad: still a work in progress. we are looking for inside. we are focused on collaborative video work, where you can invite individuals into a product and everyone can contribute video clips or photos. we automate the editing process automatically push the content together and create something visually interesting you can share with others. you would not otherwise have the time or knowledge to do yourself. this is off the heels of me and steve working on an incubator, all these other projects running at the same time. that kind of slowed things down. my advice for any startups is focusing on one thing. emily: no incubator. who: the team did not know to listen to, me or steve, coming in with opinions on things. , wee we are now with mixbit

have a great chance to figure it out. emily: how hard is it to succeed as a video-related startup? are more people using video, devices, more ways people are interacting with video than ever. it will be interesting to see how it plays out, but they captured people's imagination. that is the biggest challenge -- rising above the noise. that peoplelution have an emotional connection with and want to use. it is always a journey to find that. if you do not put pressure on ourselves, people ask about replicating the success of youtube, that is not what i'm out to do. it is enjoying the process. emily: why not retire? you certainly good. chad: i certainly could. a lot of people could retire. again, life is not about sitting around. it is hopefully about making a

difference. emily: what do you think of facebook and twitter's efforts in video? chad: with facebook, they have a feed. people are coming there to consume stuff. i do not know if it is directed yet. they have not nailed the search engine. people do not come to search anything other than their feet. they will have to build a video or hub towards push people into searching, making that more of a habit. , they talkg videos about the numbers, but i do not think it counts for much yet. kaly: you are at kim and nye's engagement. they were not happy with you afterwards. what happened? chad: my friend was in town and said let's go to this thing kanye was having. on the way up, we were searching and we said, it's kim's birthday. must be a birthday party. turns out it was not.

i took some video and did not post it until the next day until i saw other people have posted photos and videos on instagram. i do not think it was a big deal. my friend did not seem to mind. after it got out there, it got a little attention. kim and kanye wrote me an e-mail. emily: they sued you. what was the result? chad: they are still suing me. we will have to see the result. it is an ongoing process. emily: you believe you are in the right. chad: yes. emily: did you sign something saying you would not share? chad: i do not know if i'm supposed to talk with the legal proceedings going on. but i signed something at the end of the night. emily: but not at the beginning. interesting. chad: we'll see what they have to say. emily: you are an investor in sports franchises, the golden state warriors, a soccer team. chad: just an interest in a great group of people to work with.

and knew thats they would build a great organization. just being a sports fan. and understanding the world of media. sports will retain their value over time because of advertisers valuing live audiences. you cannot replicate a live event. that is one of the reasons i got involved. me"y: give me a "pinch moment. a moment in the last decade where you are like, that was amazing. we had a chance to do a few presidential debates on youtube. there were some surreal moments backstage. the democratic nominees or republican nominees before a debate. just standing in line shaking their hands as they got on stage. emily: what is next for chad

hurley? chad: continuing to focus on mixbit. we have a great team and there is a tremendous opportunity in the world of video. withork we are providing automatic editing. emily: what is the myth of chad hurley and what is the reality? chad: the myth of chad hurley? the myth that every startup has a grand plan. that we knew what paypal was going to become from day one. that we knew what youtube was going to be. the reality is, no one knows. not even me. all you have to do is take a chance and put yourself out there. hopefully, what you create resonates with others. emily: chad hurley, thank you so much for joining us. chad: thank you. ♪

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john: i'm john heilemann. mark: and i'm mark halperin. with all due respect to bernie sanders, you always have a home here. ♪ >> the monster mash. ♪ mark: on the show tonight, the first book in debate will take place in cleveland, ohio along with the smaller minor-league debate for the candidates don't make the foxnews imposed top 10.