re is going to be a day where game of thrones almost plays out in three dimensions in your room. >> do you have to be dismembered as part of that experience? >> absolutely. what is game of thrones without a beheading or blood. they is more dangerous when you play in it with them. i hope that's after me. >> michael, thank you so much. >> thank you for coming. [ applause ] ♪ >> ladies and gentlemen, please welcome the chairman and ceo of comcast corporation, brian roberts. >> great to be back and hearing

michael just talk about how not to be a tie and we're at intx. oh, well, here we are. you are who you are. so timing is perfect. we had earnings yesterday at comcast. we had a terrific quarter. i want to thank our team. we got a lot of momentum. let me just address my friends at time warner cable and say thank you very much, you are completely gracious. same with charter. but we are moving on. being here today allows us to show you what we have been cooking up in the labs. i am excited to show you a few things and invite you to come to the floor of the convention and see live firsthand a fabulous booth. so the cloud has really changed everything. it allows us to keep innovating at a pace that's really unprecedented for our industry. we won't call ourselves the

cable industry any more. so here is the x-1 operating system. you've seen this before. it's clean. it's simple. it's elegant. you have the save features, new enhancements. on demand continues to grow and get better and better and usage is incredible. we have now had 38 billion orders since we really launched on demand. search is what i want is show you a little bit today. that's the key to everything as the content quantity keeps increasing. we are up to something like 2.4 million searches every day using x-1. and then we have apps, the xfinity apps section and we keep expanding that. that is a big part of our future as well. today, i am excited to say we are officially finally launching the voice control remote. let me explain what that means, it takes search to a whole new level. there are no extra charge to

any x-1 customer to have a voice remote. we hope to -- we purchased 5 to 6 million devices for this year alone. and if you're a customer in the room at the convention just come by our booth and we'll get you a voice remote and you can take it home and play with it yourself or we'll send it to you. there is more than 3 million commands possible. it's just the beginning. we have shown you changing channels and searching by name, we are now taking voice to a new level. so today you can tune to any movie. but what if you can't remember the name of the movie? so you could just say "life is like box of chocolates," and it will figure that out and automatically tune to -- >> my mama always said life was like a box of chocolates. >> now tom hanks looks a lot younger then. so you can say how old is tom hanks?

and we built search functionality into the remote. we call this x-1 answers. people are using their smartphone to do things like this. we thought we should put it in the remote control. the next thing we're working on is find the "forrest gump" running scene. this would involve working with content companies that could take you right to the section of the movie where the show or sporting event you want to do. now great song. you're watching. what is this song? ♪ ♪ i don't know where i'm running from -- >> running on empty. the product continues to come up with new ways to allow you to enjoy one show, searching, getting answer. our people at the lab have been really amazing.

show me the comcast-time warner cable merger. [ laughter ] >> get down! [ explosion ] [ applause ] >> that pretty much sums it up. so we really are moving on. so let me switch gears. let's show something completely different available for parents and their children. if you say, go to kids mode, the automatically -- using your voice control you're in a zone that is completely safe for any children under 12 years old. if you pick a show, i will pick i carly. we have a wonderful partnership with common sense media.

you can go in and have all the specifics of that show, see what age is truly appropriate and here we are. now, from here, i could say create an i-carly play list. this is a new feature that we're working on that shows you could then just set for your children a series of shows that's their favorite and you can pick a different episode and let it play and the i-carly episode begins to play. if you leave and your kids want to switch out of safe zone, you will need a password. all easy for customers, within their control and using voice. now you are happy with that and you want to go back and watch a movie. pull up """jurassiq -- jurassic

park." continue watching. the movie begins and you get a notification that says, someone is at the door. you click and the camera comes up. you can activate the door lock and someone can come in. we think that is really cool and have been saying, okay, where do we take this as we have integrated it and have more features. today, we are announcing -- taking the platform to a new level and working with third parties to try to help integrate it and make it easier for consumers using, using voice or using your mobile app. so we've got a partnership we're announcing with lutron where all of the lutron lighting and home controls will be available on your xfinity app. the same with nest. where your thermostat, where they revolutionized that. and also with august lock which is doing unthinkable and making locks cool.

so all of those partners you can use one app and it all will control any device, including our devices or the third-party devices. we are also focused on customer experience. we talked about x-1 and we talked about xfinity home and what was neil was talking about we want to make the customer experience the number one priority and our best product. we have taken a lot of the innovation and are putting it over here. let me tell you some of the things we'll be announcing here at the show and we'll be doing a press event later this afternoon. the goal is to make it easy for customers to do business with us, easier than ever before. it starts right here with my account app. we've now added a feature called tech tracker. it will let you know in realtime that your james is 15 minutes away. you know who is coming. you're comfortable. when you're done, it's the job

is complete, we then can let you rate whether you were pleased with the service. if we do not get enough stars, we know something wasn't right. rather than wait for something to go wrong and wait for you to call us we will automatically call the customer. we started this in boston, completed a trial, it was a huge success. we will have this across the tech tracker across the entire footprint by the end of this year. another feature we call callback. now 42% of however customers manage their accounts either online or via a mobile phone. we want to make it easier for you to do that. your time is valuable. instead of you calling us, we will call you, you schedule an appointment in 15 minute increments. we now confirm that that's what's going to happen and your call is scheduled. we have that rolled out now.

one last thing that you can't come to the show and for me to do a bit of a quick demo and not talk about broadband speed. so i want to preview our new future home gateway but it's let me take a quick look back at what the first generation -- which may be in people's houses still. here is the second generation includes voice and broad band. and that's our current modem. so we've hired a bunch of fabulous designers in house working with third parties designing our own suite of future products. let me show you what they're going to look like. they are sleek and sexy. there is our team clapping. please come to the booth. you will be the first ones to see it. this is something we developed in philadelphia and silicon valley. they deliver nine gigabits of speed in wi-fi, 50% lower cost per megabit than today's routers. and what's cool is, is it not

only a next-generation gateway but combines incredible speed but we're going to have ip video capability, phone, wi-fi and all the xfinity home control all in that device. so that you have perfect reception throughout your house there is mini me over there which is in the same suite and all of this is trialing this year and will be across and available across the footprint by the end of 2016. we have a lot of exciting things going on. we have sort of been working on how do we make it easier for customers to come and see it and touch it and feel it? here in chicago, we have piloted something we call studio xfinity. we're doing a press event this afternoon. and let me just show you a quick image. a totally different look, all the products we talked about -- we have hundreds of stores all over the country. we've been upgrading them and

we're trialing this new concept to see if customers can come and play and have events and experience the incredible breadth of products. we welcome you to play with all of that at the booth. thank you very much. [ applause ] >> and now, joining brian roberts for our next conversation, please welcome the host, the chairman and ceo, of media link, michael kassan. also, please welcome the chairman and ceo of the chernin group, peter chernin. ♪ >> good afternoon. or good morning. in considering how to frame today's discussion i recalled a classic movie scene. colonel te lawrence takes the

tip of a burning match between his thumb and forefinger and slowly grinds them into a flame until the fire goes out. doesn't it hurt? the trick will become known as lawrence of arabia is in not minding that it hurts. is there a better metaphor being in the media business today? with consumer viewing behavior hurtling all over the place, viewing platforms proliferating like mad and technology making a hash of everything we know about the business you've got to be able to take a lot of punishment and as well give some back. today, we are fortunate to have two of the most accomplished executives in the industry to tell us how to take a licking or give one. as the former president and coo of news corp., now fox, peter chernin was one of the most powerful media executives on the planet. now, he's involved in everything from the planet of the apes to india and china and is one of the most respected entrepreneurs in over the top television and

other innovative ventures. brian roberts, as you know, works in a small family business. it's a pretty good business. just after watching brian earlier, i realized -- i cannot call him the cable guy and more. i'm going to call him the pitch man. that was great. and clearly while we always talked about the last mile, brian, when i saw xfinity does in house, it's like the last inch. it's a new world. ladies and gentlemen, i promise not to be painful but extremely educational as we get a chance to chat with peter and brian, so thank you. brian, the video you showed with the explosion i think you already addressed the elephant in the room. so i don't think i need to touch on that. but what i would love to do is kind of switch gears. yesterday was a good day for comcast.

the earnings announcement i think is a good example and a good picture as to how the marketplace is changing. subscriber versus the broadband -- obviously you talked about it yesterday but i would love to just chat about that a little and how you see that poor tending for the future? >> we have a fabulous company. my father is 95. we have been fortunate enough to be on a wonderful journey that seems to take many twists and turns. i pinch myself every day to work with the team of people and the nbc universal folks. yesterday, all parts of the company seemed to be firing on all cylinders. we're rolling out more x-1. we stated we're going to increase the pace of that. we're getting great customer response.

the broad band we criss crossed. there are a few more broad band customers and growing fast. video has leveled off. we have invested in the fastest in-home wi-fi, we redefine what we think broadband is. and it has to be that whole last inch experience. and then it -- and many many other things in the cable division. but the team never lost its focus and for that i'm grateful and proud. over at nbc universal, peter helped us have the confidence to jump at a perfect time to buy the company. the job that steve burke and the team have done is -- in my opinion one of the best experiences i've been a part of in 30-plus years. we reported yesterday that there are four big divisions. the one that everyone here is familiar with the cable networks continue to be the most cash flow part of the company. we've got lots of nice stories.

lots of challenges i'm sure we'll talk about. it's an incredible brand, usa, nbc, msnbc, bravo, on and on. everyone is familiar with nbc. we had a big day with kentucky derby and super bowl and olympics and blast list and the voice. next week, we launched the ne the new upfront season and we're the number one network 18-39 for the second year in a row. the two that just shocked us were the movie business. which peter is particular will -- familiar with. fast 7, 50 shades of grey. minions. this is the biggest year in the studio's history.

and theme parks was the fastest growing parts of comcast of all those businesses and we kind of sat and said do we want to make the investments necessary in theme parks back then. and over 50% growth and cash flow in the first quarter thanks to harry potter and the minions attraction and hotels and many other things. just a great time in the company. we obviously can't look back, we can only look forward and with that kind of plate of activities it's an amazing time and great day yesterday. >> the only postscript i put on that was having worked with you guys back when you were looking at nbc as well, the commitment you made back then to make the investments in programming and technology g.e. was a wonderful company but they weren't making those investments. the results are great and congratulations on that. >> we both did that. if you don't fall in love with

nbc don't do this particular deal. we have made investments from nbcuniversal to film to and cable, advertising sports rights. >> it has paid off. >> it's paid off. >> let's talk about what brian does better than anyone else. his skinny bundle looks pretty good. i need to work on mine. what does all that mean at the end of the day, peter? you have sat on all sides of this. some of the stuff we've had the privilege of working on and the things you are leading in the ott world, how does this all play out? you were a content creator. you ran studios. it's an interesting time. >> you know, look if i knew, that i would probably be sitting some place more fun today than right here. >> come on this is fun.

>> look, i think it's a very complex question. what you are seeing is tremendous distribution explosion. i don't necessarily think -- i'm not convinced that you will see the collapse of the bundle. i think that's wildly overstated. i do think you'll see the bundle rationalized in some ways. i think what you're going to see more than anything is this tremendous explosion of new alternatives, largely ip delivered. you are already seeing it. netflix is an exciting company. youtube, the amount of viewing on youtube -- if you are trained to reach younger demographics, youtube business. you have these other alternatives. it will force the bundle to justify itself. and that's honestly not the worst thing in the world. >> so peter when you mention youtube, it's interesting having

been there at the beginning and you made real investments in some of the sort of youtube directed, full screen and things of that sort. these days i don't sit with a content creator in the overthe top world or the multichannel network world where so much noise is happening where they don't talk about their off youtube strategy. it is now part of the checklist. you have the youtube strategy and you need an off youtube strategy. how do you think that plays out? >> what you are seeing, which is a great opportunity in the over-the-top content space -- in the avod is for the first time it has largely been that business has largely been a youtube business for the last five years. it's where all advertising supported video has been viewed. and what you're seeing now is enormous competition starting

within the last six to 12 months, an enormous amount of video viewing on facebook, you're seeing twitter starting to get into video. i think some of the snapchat experiments in video are fascinating. what you are seeing for the first time is enormous distribution competition which historically has all been great for content creators. one of the reasons why the cable channel business is so extraordinarily profitable today is that you had real distribution competition. you have cable, satellite and the telcos coming in and generally those channels had a lot of leverage in those negotiations and distribution competition leads to leverage on the part of content creators. i think for the first time you're seeing that and it's why everyone is talking about off youtube strategy.

youtube is a great distribution partner and deserves credit for growing that business. if you are a content creator, the more competition, the better. >> you talk about the snapchats and the nextgen. i read something about -- in the wake of the fight this weekend about the amount of people who watched on periscope and meerkat and different kinds of viewing experiences, yet the numbers works for an area in terms of pay-per-view revenue was. >> brian and i were talking about this earlier. i'm on the board of twitter. there was no intention on the part of the per scope guys to serve as a piracy device. i think the service has been live for about a month. they were moving as quickly as they can to respond to take down notices to take down things as quickly as they can get to them. and i think it's something that they will perfect. the future of those devices is not to pirate off media and i don't think that is anybody's intention.

but i think some of the other things that periscope did, the dressing room stuff with manny, the ability to live broadcast things which otherwise would not be part of the broadcast event because you are unable in linear feed came into great opportunity for those things. >> piracy still represents the vast minority of how people consume. the fight was off the charts in terms of the high end of everybody's estimates. so you know we're -- as we build a legal home theater there's always going to be an illegal home theater. responsible companies are always trying to tamp it down. the world of technology makes it constantly blurring the lines. of how do you control that which in the old days you could

control and it will always be a cat and mouse game. i will say this about new forms of distribution new forms of -- i don't love the phrase over the top. but just simply because i think this is a combined experience world. it's not either/or. it's not going over anything. it's going through our broad band. if we do a great job of building a wonderful broad band that's what this room is doing. we thought for a long time video for the net or now ip is a great thing for our business. change is uncomfortable but it's powering our growth. so in terms of all these different services if you take them all -- i think the value point, peter, that you made, so far, it's demonstrating what a great deal it is to get the bundle and it's not even close if you add up all the individual piece parts you can't come close to what you get.

we have to be responsive to the market. not everybody wants everything. it is a work in progress. >> to a savvy audience like this, this is not news. but show of hands how many people binge of blacklist? i do for sure and i love every moment of it. i have not watched one episode on nbc. i have watched every episode on a device other than that thing on my wall. and i'm asking from a different perspective. my focus is usually on the advertising side of these questions. if i'm an advertiser in terms of video consumption there's no question, the numbers are up. in terms of advertising, which is certainly an important part of comcast nbcuniversal's business today way more than it was four years ago. >> advertising continues to be really strong. the scatter matter as we head into the upfront has been really hot.

but there's no question that the kind of behavior and viewing you're talking about is happening all over. it's great that people want to see your content. how do you catch up and monetize is no different than the periscope conversation. so where we think we sit as comcast nbcuniversal is the cable company is able to do certain things. nbc is able to do certain things and we are able to do things together to accelerate advanced and targeted ad to measure on other devices and help the ecosystem to recognize the value that all parts are bringing. i'm excited that we are in a good position to do that. >> peter, at the intersection of entertainment, marketing, media advertising, and technology it's a busy intersection but it's it's the one we're living in right now. all those things are converging and creating tremendous chaos i

think. tough question to ask but at that intersection as an investor, where are you look? at all aspects of it? is there any place in particular? are you looking more on the technology side or more on the entertainment side? and again, they are not discrete, but they are. >> show us your portfolio. >> i think that's it. >> this is just -- >> exactly. >> we won't tell anybody. >> i think it's less a question of what we're looking at than what i think are some interesting trends, perhaps. the most interesting trend right now is brands. and i think it's interesting. if you go back to what brian talked about five minutes ago with his mini earnings report of how well the company is doing, it was largely a litany of brands, whether fast 7 or harry potter or the nfl or the olympics. i think what you're seeing is

brands are driving enormous value. i have enormous respect for what bob eiger has accomplished at disney largely because he bought some enormously successful brands and integrated them into the family. as things get fragmented and disintegrated, what i'm real certain about is strong brands will not only survive but they will thrive. what is under threat a little bit is the notion that the aggregation of the brand -- in the past -- look at various cable channels. those cable channels with strong brands, fox news, espn, fx, they will be just fine. those cable channels which are a bit more amore -- they are

challenged because they are an aggregation mechanism and people don't care about the mechanism. they care about the brands themselves. >> they can aggregate now. >> every consumers their own aggregator. they pick something from their broadband service, something from the broadcast network, something on the mobile device and they create their own schedules. and what will dominate in that world is strong brands. >> let me just ask peter. you mentioned some of the things you've looked at and also invested in are also in far-flung places. as you left fox you looked all over the world and you said we're copying your success with what -- we hope what michael is going to do with his new company is have a chance to look at any situation, not just something right down the center of the plate and the businesses that you're already in. there has never been a more explosive time for value creation. maybe some value loss or dislocation.

and that creates opportunity. and that opportunity is not just in the u.s. >> i think there's no question that there is -- first of all, you know, i'm sure you see it inside your movie business which is now somewhere in the neighborhood of 70%, 75% international. these big brands have enormous resonance all over the world. you are beginning to see that with various media outlets. we have a number of investments in india which is in the next ten or 15 years will be the biggest country in the world will surpass china. a great place to invest in media. we've invested in indonesia. fourth biggest country in the world. 250 million people, all of them young and connected. one of the great connected societies, indonesia a big youtube society and facebook society. all very aware. what happens with all of this technology has made the world

become much closer and it's also given you ewe bigity of distribution. you can distribute any brand anywhere in the world to any device to any home to any person. and in the long run, i think the term brian just used, there will be some dislocation along the lines. and the transition is not always going to be easy. the overall future is incredibly bright in the sense there are a gazillion consumers out there that we now have access to. we largely had access to the degree that they were in front of their tv or in a movie theater. you can now have access anywhere in the world. and that pie will continue to grow and it's exciting. >> this is a jump ball question. it's something you both know well. there was historically this link between marketers, messages and content.

that's how it was delivered. as we all know, it was never free. the quid pro quo, the exchange value was if you watch or listen to these commercials on tv or radio i'll give you the content. it wasn't free but you were paying for it with your most valuable commodity which is your attention. but that's changed. if you are unilever or coke and you need to get that message out, how do you do it now? how do you play? at the same 3:00 in the morning that the brands that are waking up, the content creators are waking up and the distributors. advertising has supported this for so long. what is the advice? >> i think one of the things that steve did at nbcuniversal is he took all the parts under one person for the first time of the history of all the various parts and said when we sit down

with coca-cola let's have a conversation about digital, mobile on demand, live, every possible part that we can think of, how can we help you do special shorts on youtube and have it play on, you know our websites. look at how we do the fallen show, most of the views aren't on television. and yet the brand is bigger than ever. so there are so many clever people. we've been looking on the cable side. we brought in technology companies to speed this along and give you more data. i think you boil it all down to that word, "data." it's a tool. it's a resource to allow for the first time brands to know more about their customers, where in the past it's been a stab in the dark. i think all of us are trying to rem those customers have that --

and the companies connect in ways that are positive for everybody. >> and brian i think it's fair to say the free wheel play that you made is the -- kind of the thing that everybody points to in the industry as that next-generation in terms of advertising serving -- >> let me take one second on that. you know, very dynamic company. it plays a smart part in trying to pitch to digital from the analog world. we talked about china. i think for comcast our opportunities are going to be different than probably what most people are thinking. it is such a new world, we should keep our eyes open. it's not just live in the past. so free wheel is a good example of that. i went to china to visit where most of their people are and we have 150 software engineers, mostly phd's and master's coming out of beijing university. hiring another 100 or so a year. we are building a theme park in beijing.

and "fast 7" had i think it's -- you would probably know exactly. over $400 million in china which is the biggest movie in the history of any movie in china. these are all things our company didn't do 24 months ago. i'm very excited that we will be on that journey. there's no quick sound bite answer. brands are going to exist. brands are going to thrive and we need to reach customers and all of us are chasing how best to do that and continue the momentum that we have had over the years. >> i was at the full screen new front yesterday. if you look at the under 34 demos -- and beyond the pitch there is a lesson here. we have 15, 20 creators doing more than 10, 20 million views a month. more than virtually any cable

channel. and what it really suggests is those creators are ultimately brands to their audience. the fine brothers, they're a brand. and what you've seen is we're beginning to partner. everything old is new again and it's coming back to advertisers closely associating themselves with content brands. if you are an advertiser and you can get -- jimmy fallon is a very good example. ubiquitous. he has a reasonably sized audience on nbc every night but a huge audience beyond that. to the degree you can get associated with one of those brands i think that is the avenue of where advertisers are going to have to go. i think the old business, which was a little bit easy in some ways which is you buy 9:00 on this channel or a roadblock across the cable channels.

in some cases that will be a great buy. where it's not you'll be throwing your money away. i think you're going to see brands get much closer to key creative brands on their own. >> this is a golden age of television, golden age of content. and customers and consumers are going to want it. and that's an opportunity for brands to associate themselves with it. >> the fact that grace and jimmy fall fallon are in the same sentence -- >> also, both on comcast. grace has her new show on e! >> we are out of time, but i appreciate you spending the time sharing your thinking. and thank you all for your attention. >> thank you. [ applause ] ♪

and now ladies and gentlemen, to host this morning's final conversation, once again please welcome the co-executive it or of recode, kara swisher. >> so we're going to have a talk with tim armstrong from aol. we want to bring someone who is doing things in internet video and talk about where is it going. i have written two books about aol a which is a lot and know the company very well. and i thought tim would be a really good example of what has been going on and the thought behind a lot of creation of original video and where video is going and how we're changing. so tim armstrong?

[ applause ] so tim -- we are -- we have -- i've interviewed you -- i'm going to put this timer here -- thank you for dressing up. i appreciate it. >> there's a microsoft convention across the street. i was debating what to wear. and i went in there and said to my assistant, see, look, everybody is dressed like i am. all these microsoft signs are all over the place. are they getting back into cable? >> they said this is the microsoft convention. you're in the wrong place. now i'm back. >> i thought i told brian i was thinking of coming out here and cutting off his tie. but since he gave me millions of dollars in investment it could go either way. it could be adorable, kar or

let's have her killed. maybe a little bit of both. let's talk about where things are going with video. you are famous for having things recorded of you. tim had a meeting where he fired someone publicly. which was probably not the best idea but it's someone was there and you would call me and say there is not any video or audio of it. and i said there will be audio and it was within seconds. what is wrong with you? >> first one thing that's really important to us is communication. overall as business. we have 5000 people at aol, almost all of them have gone through a hand-picked process. talent and communication are the things that are probably first and foremost on our agenda. we do these company meetings which we broadcast out quarterly. and i think we set up global video conferencing. we have a big infrastructure

behind it. >> expensive. >> and the last time we did it i said why don't we periscope it out? the reaction inside the company was, what is that? why would you do that? the land of video is changing so quickly, if we don't get ourselves used to being transparent and be a company without walls and how do we use the best infrastructure to get the highest leverage in the world out. i periscope the meeting. we gave people a half hour and said that the company meet willing be on periscope. it was amazing to watch. about 2500 people joined the meeting when we did it. hundreds of people outside the company joined it. and in the process of it it basically taught us that day that you can do things really quickly in a fairly good quality live versus all the infrastructure we've built up. >> you saved money? >> we saved money.

it was instantaneous. our engineers -- i was watching my screen and i had e-mails coming in from our engineers say next time i will build this, next time -- later that day we had two or three other content things happening at aol. all of those were periscoped. we would've had a six-month management meeting and we would have tested it once and put in the back drawer. the fact that we did the company meeting that way, the company shifted to think that live video can be cheap and effective. >> let's iterate that to elsewhere. it's what is happening elsewhere and it is happening before. there has been live streaming. it is a big idea right now in silicon valley. how do you -- talking about dropping costs. so dropping infrastructure. right now you just did the new fronts right?

and you spent how how much on content? >> tens of millions of dollar a year on content. >> these guys are spending billions. >> right. >> why are you doing that? i really like that you got susan sarandon to light up a pot cigarette on your video show. but what are you doing? what is the goal of that? what do you think the rest of everybody is doing? >> first of all, at a global perspective and i'll get down to the content, if you look there's 900 million paid tv connections in the world. roughly 2 billion people on smartphones. that number will go up to 4 billion in the next few years. peter was just talking about how big distribution has gotten. in general we're as a company doing two things. we're essentially building a media platform on a b 2 b side. we provide video services and content and ads to 40,000 other publishers at this point. for our owned and operated properties we are investing in

the content that looks like the future of content. the show you are talking about is a show called connected. that show is driven by machines, by smartphones. the entire show is shot almost like a periscope from the viewpoint of someone's phone. and the amazing thing susan sarandon is on that show. and we have had good receptivity. some of our shows we have invested money in -- are three highest-rated shows have had 50 -- 15 million users on them. viewers. and that's an incredible number when you take a step back. that's an incredible number in the united states for internet stuff that we're doing. when you take a really big step back the fact you could reach 4 billion people in the next couple years, that number 15 million needs to be 115 million. that's where we are investing in huffington post, putting video behind them is going to be really impactful.

>> video is your biggest. you bought the video platform and pushing this idea for a while. now everybody else is google amazon, netflix, apple eventually. is it a big threat to the -- do you want to become the cable industry or not call it the cable industry? >> the way i look at this is, there will be a set of companies from the cable landscape that are showing things that brian just showed. we just announced a big deal with nbc last week. so i think there will be a number of companies that essentially get together and do it together, internet and tv. then there's going to be some companies that are left on the sidelines over time because they haven't moved quickly enough. there will be companies that don't get the proper amount of scale, focus and energy. and i think we're at a tipping point. i was saying this at work the other day. i've been doing this now for 20 years. i think this is absolutely a

time period almost like the beginning of the web. where there is a year that happens where everything changes and i think we're in one of those time changes right now. >> if you were running -- he called traditional media i just interviewed shane smith of vice. and he called media companies distressed properties. he was drinking a little bit but still he had a point of view. i hear that from a lot of internet people. they imagine them buying those companies up or just disrupting them completely. do you imagine that would happen quickly? do you see it? >> i think there is -- we invested four years ago in video and in content brands a it a time when nobody wanted to touch content brands and everybody thought that video would never be high quality enough to make the leap where it has made today. we were early investors in that. we had a company in peril that

needed to be turned around. and i know what the attributes of aol were when i got there and what needed to happen. the biggest attribute at aol, all the metrics were red. almost every was done. and i think if you look at the traditional media companies right now. if you look at their p & ls and all their major lines of business are red, which i'm sure they are not. >> viewership certainly is done. >> the high-level stats right now, i have something we call 4m, which is the fours that video and mobile is growing 40% which is a huge growth rate compared to what everything else is going. $4 billion transition from tv to mobile video if things stay on track. and 4% of the population in the

united states meaning 96% outside the united states. and if you take a real big leap back and think about where things are right now, you know, basically, those fours are going to end up being a really significant shift because there is -- when there are 4 billion people on mobile -- what i call machines -- >> why machines? >> if you watch how kids use the phones, they don't talk they are operating a machine whether a communication or video machine and i internally inside the company refer to this as a cable box in my pocket. when there are 4 billion of those things floating around and a lot of high quality video between cable companies and television companies and the internet it's a powerful way to build mega brands. how you to build -- >> on that particular screen.

>> on that screen. but you're going to have to. >> so the idea is that it's a watching machine, really, essentially. the reason i don't like machine it's terminator. >> right. it's a beneficial machine but it's a machine. and i think -- it's parascope, by the way. i just replaced in my company meeting my iphone 6 plus with what is 30 machines and 30 people trying to do a global video conference for us. that's how powerful it is. i'm thinking how do we build the lightest company on the hardest technology we possibly can. and if you look forward ten years what a company is going to look like, i think you'll see massive raise for infratuck turs and advertising. >> let's talk about the landscapes. let's talk about the big players. i'm going to go through each of them and you tell me where you

think they are going, internet companies. google. and you worked for google for ten years. >> yes. very flat from a tenchsearch standpoint and -- >> would that be video or just -- >> video is one. autos are one. you see what they are doing. i think they have an open field of things that they are doing which are all in big markets. this is true for a lot of big companies. if you're a big company and need to grow, you need to do things to grow. you're seeing things like autos for a whole bunch of companies become a big target in general. i think that's what google is doing. >> so do you imagine them buying a cable company, buying content? they keep talking about delivering their own fiber. >> i'll give you my end of the movie prediction for all of these companies, in general, which i think is at the end of every business strategy is a

human and a human is probably not going to have -- is not going to sign up for 20 services. a human is not going to want to have 20 companies that they are giving all of their data to and figure out where all of the channels are on 20 devices over time. so i think you're going to see a regulation of all of the companies trying to compete in the space down to what human capacity is and almost everything you look across the world that humans can actually handle and know about is you know, around the rule, a 7. so my guess is, as a human being you'll try to optimize for the few west amount of partners, devices, places to get content over time and it's going to put tremendous pressure on the internet companies and the cable companies to become one of those seven places that you do things. and i think the app systems are the same thing. there's 200 companies in app tech. i think there will be 7 to 15 major companies over time. i see this happening -- video is a hot word right now. when we got into it very few

companies were into and now you're seeing hundreds of video companies. that's not sustainable. and it may take five or ten years, but the same thing happened to auto companies when the auto companies launched. >> so amazon, what do you make of their efforts? they put out great shows, they've been -- >> i think amazon is doing a really good job of building a moat around their business overall and content is either part of that motor its own moat. but, you know, i think also, each of the internet companies has a different relationship with their users over time. i think if you're a facebook user you have a different relationship than you do with google. amazon, different relationship overall. you're also going to see the specialization of these platforms become more important. >> right. let's talk about facebook. that's one of the companies that people are now consuming an enormous amount. much of the video is somewhat ridiculous. i literally watched a snake eating an egg for 20 times. >> right. >> at least.

but that's really the level of kind of video that's on there. then again, we put our president obama interview up there and that's where we got most of our views, which was interesting. >> right. >> we had to put funny letters there to get people to click on it. but how do you look at facebook? to me, i think they are -- >> facebook has done a good job on video and the bottom line is when you look at all of these companies, kara, every one of them is in nonkmod advertised areas. high-quality content is going to skyrocket which is the opposite of what these companies think. second piece advertising is going to get really expensive. trying to convert a customer in digital in this environment, we have companies on these platforms. ad prices have gone up double digits for the last three years overall. and i think the bottom line is consumer is going to end up getting a really, really big win out of this. you have some of the best companies in the world and the

most competitive companies in the world basically trying to get down to this rule of 7 and it's going to be a lot of companies investing time and energy. >> i'm going to ask about two more companies. >> right. >> china. and sort of all of them, alley bab ly alibaba. >> on the board slide there are three things. the amount of users you need to deal with every day, the amount of content producers and ad dollars you need to deal with and that slide for me plugs in the fact that in five years all of these networks will be globalized it. that's the other thing that people are discounting, we live in the united states. >> right. >> the other companies from other countries are more interested in coming here. >> yes. >> and when you go to japan or china, you look at the scale of users that they have on their services and they are more integrated over time, if they come here, it's going to put tremendous pressure on the

companies like ours and everybody else to compete at a much higher scale. >> now next company apple. they are trying the watch thing. >> i have the watch. >> you do? >> yes. >> do you like it? >> i do. i've been testing it. this is the huffington post on the watch. >> yep. >> we can't see it. >> it's teeny tiny. >> that was trending. basically, i like it. been using it for a week or so. here's what apple does a really great job of i think. apple does a really good job of thinking about the rule of seven. human beings over time want cure rated information devices. >> right. >> they do a great job of that. >> you were thinking of taking your iphone 6 and becoming the tim broadcasting network essentially. >> right. >> how did they play at this? they are very into their devices. they want you to use stuff on that. >> yeah. >> but are they going to become essentially the cable company

eventually? >> i think there's going to be a massive fight for content and there's going to be a massive fight for services. i think this is my prediction and i've said it publicly before. devices and networks have the potential to get massively come mod advertised. we'd have a hard time seeing the difference in the phones. content is what drives the different differentiation. there's going to be a significant amount of investment in content and it's going to require a similar investment in the advertising side. but i think we're -- video is going to change -- we're going to go from hyper text to hyper media. you have to hustle. >> last two questions. who is going to suffer most in

that transition? who is in trouble? >> i can tell you any company that doesn't see change as a weapon for the future is going to suffer. if you're not willing to change you're going to get blown over. >> the broadcast networks? >> if you're not willing to put your content on the internet and on mobile, you're playing with fire. >> and again, like i asked michael, prediction what do you -- what is your -- he was talking about holographic game of thrones. >> i think internet is going to change. instead of the internet or one thing getting credit for everything advertisers will know where they are getting credit for. the second thing is internet of things mixed with virtual reality where every place you go you basically can have a designed experience over time if you look at the stuff in the news today, you can imagine the difference between reading it or getting a report versus having it -- you in the situation yourself and being able to see

what all of the players were doing inside of a news piece. that's going to change how human beings understand content. >> terrible news things or -- >> terrible or positive. you're going to be able to live inside of the information that you see and when you live inside of that, it's going to give you a much different viewpoint on what the dynamics are and that's why i think we're just -- we're in the 4% of video is programatic and 4% of advertising are programatic driven by machines. this is a baseball game, two outs in the first inning and the other team hasn't gotten up yet. this is -- i think the future is going to be much much, much more exciting. >> when you start with sports metaphors, that's when i leave. >> all right. >> thank you so much, tim. [ applause ] >> this summer book tv will

cover book festivals. this weekend, we're live at book expo america in new york city where the publishing industry showcases their upcoming books. we're live for "the chicago tribune" lit vest, including our three-hour live in-depth program with author lawrence wright and your phone calls. near the end of june, watch for the roosevelt reading festival. in the middle of july we're live at the harlem book fair the nation's flagship african-american literary event with author interviews and panel discussions. at the beginning of september live from the nation's capital for the national book festival celebrating its 15th year. that's a few of the events this summer on c-span 2's book tv. coming up on c-span 3, american history tv looks at president abraham lincoln's assassination which took place 150 years ago. next, we'll show our coverage of a commemor