♪ but in the end it's right ♪ i hope you had the time of your life ♪ [ cheers and applause ] >> that's all. in the '90s we're going to revolutionize human communications using these decktop computers. >> you've got mail. >> what is the worldwide web? >> in the world of computers it's kill or be killed. >> please welcome bill gates. >> do you agree or disagree that you have a monopoly? >> check out windows 95. >> this is imac. >> it's a technological revolution that's changing the way we do everything from making friends to falling in love. >> when the new millennium arrives so will a technological tidal wave. ♪ ♪

♪ ♪ ♪ ♪ so, you've just bought your first personal computer, you've brought it home from the store, you're unpacking it, and then comes the moment of truth. if you've just bought your first personal computer, this show is for you.

>> computers were in 1990 a disconnected device. it was a brick, right? that sat in your house and let you do amazing things that you'd never been able to do before but it was essentially a productivity tool. >> now that we have all these very powerful tools, we're still islands and we're still not really connecting these people using these powerful tools together. >> apple was in a period of decline. steve jobs quit in kind of a temper tantrum in 1985. and he went off and started a company called next. after he left, there was a sequence of pretty boring unimaginative corporate leadership that followed him. >> why did you leave apple? >> well, why did i leave apple? i was asked to leave. yeah, i was asked to leave apple. i was planning on spending the rest of my life there, but didn't work out that way. >> steve jobs was a genius, but one of the reasons he got moved out of his job was because he was spending huge amounts of money on projects that, for the

most part, never reached the market. and apple had a crisis of confidence. >> at a time when major computer corporations like apple are laying off 10% of their workforce, microsoft is the big exception in the computer industry. >> people didn't get how much value there was to be derived from software. that the operating system could be the most valuable piece of real estate in the whole computing business was something not understood by almost anybody in the computer industry apart from bill gates. [ cheers and applause ] >> today we're introducing microsoft windows version 3. >> bill gates -- part thomas edison, part henry ford, part holden caulfield from "catcher in the rye." at 19, he dropped out of harvard to design computer software with his friend paul allen. they came up with a system that operates 90% of the personal computers today.

>> microsoft was making a lot of money then. they were charging $200, $300, $400 for, say, a word processing package that really was costing them about 50 cents to print on floppies. >> hardworking, modest, easy going, it would seem to a fault. of course, he does have at least one secret. but we'll fix that. is it true that you can leap over a chair from a standing position? >> it depends on the size of the chair but this chair, probably so. >> yes! >> i took a step before i did it. >> that's okay. >> bill gates wasn't just one thing. he was a brilliant guy. had great parents. family values. but he was a killer. he basically was a ruthless guy, and so was microsoft. >> no, no, no, no, no. somebody's confused. somebody's just not thinking. > there's no way. >> we'll figure it out. >> you guys never understood. you never understood the first thing about this.

>> a lot of people make the analogy that competing with bill gates is like playing hard ball. i'd say it's more like a knife fight. >> i've never heard any of these things. you know, you're saying like knife fight. that's silliness. it's childish. i mean, why be a mouthpiece for that kind of silliness? i'm done. >> can i just ask you one more question, bill? >> no, i don't think so. >> i remember one time interviewing gates and i said, microsoft owns the world right now. do you worry about that? he said, i worry about it every single night. i go to bed thinking what have i not thought about. >> now it's starting to dial. and now i am in. >> it spans the globe like a super highway. it is called internet.

the net began back in 1969. it was a tool of the pentagon. but nowadays, just about anyone with a computer and a modem can join in. >> the internet was a really dorky, hard to use and extremely nerdy thing. none of your friends would have been on this. just fellow people in tech. >> the internet really was not a huge factor in the early '90s. but netscape changed things. >> they're calling him the next bill gates. 24-year-old marc andreessen. 15 months ago, andreessen, fresh out of the university of illinois, helped start a company called netscape. at 11:00 a.m. this morning, the company's stock went public and wall street went bonkers. so what does netscape produce that now makes the company worth $2.9 billion? this. the netscape navigator, software which makes it easy for people to connect to the global computer network called the internet. >> microsoft has a long history of feeling threatened by hot, new upstarts. you could easily argue that bill

gates' game plan was world domination. >> these guys can be taken. but the only way we're going to take them is by studying them. know what they know. do what they do. watch them, watch them, watch them. take every one of their good ideas and make it one of our good ideas. >> microsoft came down and essentially said to netscape, hey, you know, we can be friends or we can be enemies and, if we're going to be friends, that's great. you'll get all the advantages of working with microsoft in a million ways and you'll be on the home screen of a lot of computers. or we can compete. and if we're going to compete, we'll do basically whatever is required to kill you. >> some people believe you have an infinite appetite for power that you're the embodiment of a button in the 1980s that says, i want it all, and you want to eat up your competitors. is that unfair? >> it doesn't ring any bells with me. are you done yet?

does it look like i'm done? shouldn't you be at work? [ mockingly ] "shouldn't you be at work?"

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the first day back. >> what do president clinton, conservative radio personality rush limbaugh and rock star billy idol have in common? they've all got electronic mail addresses on computer systems linked to the internet. >> who are these other people that are on it? >> other people just like you. >> how did they get on it? who regulates this internet and who decides who gets on this highway and who doesn't? >> well, the services we're

talking about today are commercial services. you spend money to get on there. there's no real regulation per se. you use your phone line and your computer and you get online. >> compuserve was for the tech-savvy people. prodigy was for shopping and aol was the first one that had a vision to get everyone connected. [ computer handshake ] >> when i heard that sound, i cried a little bit because i knew there was a big adventure waiting for me. >> welcome. you've got mail. >> compuserve charged by the minute. it was like a taxicab. aol's invention was to forget that and charge $19.95 a month, all you can eat. and that changed everything because now you could afford to be on the internet all you wanted. >> you didn't have to be a researcher. you could dial on to aol. aol was specifically designed to be point and click. >> steve case is the president of america online. i interviewed him via computer. >> then george asked what are the most popular america online features now? >> he responds the real focus for us is on promoting

interactivity. >> what's the very best thing about it? i think being able to communicate with just about anyone anywhere. >> one of the things that aol realizes is that america online can't be all 200 plus million people at once. you need little neighborhoods. and so chat rooms become internet neighborhoods where people who share interests create their own little space. >> maybe you click on the chat button up here, or go to the people connection, that's what america online calls it. and when you get there, click on a list of rooms to find different categories of room. >> when i was a kid, i didn't know any other black gay people. the only people that i knew were the folks that i met on america online. i didn't come out to my mother till much later but i was out on the internet. >> in many respects, aol was one of the first social media companies. >> computer communication is not like human communication. there's no facial expression to help you know which way something ambiguous is meant. so the isolated communicators of cyberspace have come up with

little signs made out of punctuation marks. they're called emoticons. >> you were using texts to have a conversation that felt like a face-to-face communication. you could see the start of this new online culture. >> it's a technological revolution that's changing the way we do everything, from making friends to falling in love. >> he was nice and he never gave me any of the come-on lines. it was always friendly. >> wait, you're telling me guys use pickup lines on a computer? >> uh-huh. >> as the internet grows, i'm finding information. i also want to find love. >> i just happened to stumble on michael's address. i picked him out of the blue. i read his profile, and i was completely floored. >> many of the businesses of the internet work on connecting for the first time total strangers who have very narrow interests in common. >> aol was what was called a walled garden. picture this, you're paying a monthly fee for something with a limited number of things to do.

no matter how many things they put inside their garden, it could never come close to the hundreds of millions of things that would pop up on the open internet. >> the thing about the world wide web is that it has no central organizing body. it's chaotic. >> if you aren't running a website, how is anyone going to find you? >> stanford grad students jerry yang and david filo liked spending hour after hour discovering interesting places on the internet. that is how they stumbled on to a fortune. their million-dollar idea is called yahoo! ♪ yahoo! >> yahoo! came in at just the perfect time. they literally made lists. it was just simply a listing. it was jerry and david's web listing. and they named it yahoo! after rednecks, yahoos. >> yahoo! was an exercise in organizing the internet. it quickly became the leading way to find things. it was a directory-based system.

it wasn't a search-based system. the idea was to curate the whole web. >> wall street now values yahoo! at around $700 million even though the company is barely profitable. >> with the success of netscape, and the growth of these digital upstarts yahoo!, there was this energy that was not all in seattle. >> it's not really silicon valley versus what's going on in redmond, washington. it's more mankind versus microsoft. silicon valley is just one outpost against the evil empire to the north. >> this is silicon valley, the heart and soul of the nation's computer business. here, microsoft is respected and feared as a powerful giant whose every footstep sends shivers through the entire industry. >> there's this emerging war basically between the silicon valley culture built up around the web and the microsoft culture up in redmond. it's not just a cultural clash but an economic clash, technological clash, a clash for

power. >> bill gates had to turn microsoft like a supertanker around to have it address the internet. the way they did that was by coming up with internet explorer which they presented as the world's best browser. it wasn't. you know, microsoft stuff never is the best. but it was well marketed and it was pushed, and they had a lot of money behind it. >> here came microsoft with its own version of a web browser built into windows 95. their intention was to kill netscape as the browser and make internet explorer its replacement. >> five, four, three, two, one. zero. >> a consumer feeding frenzy. many computer stores like this one in miami opened at the stroke of midnight so customers could be the first to get their hands on windows 95. ♪ check out windows 95 >> it seems like an awful lot of

fuss over a single product, but the product will have a huge impact not just on microsoft but on the global computer industry. >> this is jennifer aniston. i'm matthew perry. we're here to see mr. bill gates about a possible starring role in the video guide to microsoft windows 95. ♪ >> all the employees of microsoft have been invited to a huge party in a tent on the microsoft campus. guess what song we could hear blaring out of there? you guessed it, rolling stones' "start me up." >> windows 95 was the most successful software launch to this day. everybody, whether they really wanted to or not, went out and got windows 95. >> getting the rolling stones to allow their music to be used in the ad launch tonight is the sign of a company at the peak of its powers. the challenge for microsoft is to stay there. with the race now on to exploit the internet, it may soon be microsoft's turn to fear the competition. ♪ i've been running hot ♪ you got me ticking ♪ gonna blow my top

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