blacklist? i do for sure and i love every moment of it but i haven't watched one episode on nbc. i've watched on a device other than that thing on my wall and i'm asking it from a different perspective. my focus is usually on the advertising side. in terms of video, there's no question. the numbers are up. in terms of advertising as we look at it, which you know, is certainly an important part of comcast nbc universal's business today way more than it was four years ago. >> so, the good news is advertising for our company continues to be really strong. the scatter market 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 and as peter said, it's great that people want to see your content. how do you catch up and monotize is no different than the perriscope conversation. so, where we think we sit as

comcast nbc ewan veruniversal, the cable company is able to do certain things. nbc's able to do certain things, to really try to accelerate advance and target ads that measure on other devices. to help the ecosystem recognize the value that all parts are bringing. and i, 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 the one we're all living in. 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 looking? are you looking at all aspects of it? is there any place particular? more on the technology side? more on the entertainment side? and again, they're not discreet, but they are.

>> show us your portfolio. >> i think that's a -- >> this is just -- >> exactly. >> won't tell anybody. >> no, i think it's less a question of what we're looking at than what we're interested in. i think potentially in my mind the most interesting trend is brand. if you go back to what brian talked about five minutes ago which was sort of the report of how well the company is doing. it was largely a litany of brands. whether it's fast seven. harry potter and the case of theme parks or the nfl and the olympics. i think what you're seeing is brands are driving enormous value. one of the things, enormous respect for what bob has accomplisheded at disney. he brought enormously successful brands into the family and as

things get fragmented, whatever happens to the bundle, what i have real certainty about, is is strong brands will not only survive, but they will thrive. and i think what is under threat a little bit is the notion that the aggregation is the brand. in the past, i think a good example is if you look at various cable channels those channels which have strong brands, those things will do just fine. those cable channels not necessarily going name, which are more will be challenged because they are ultimately aggregation mechanisms and people don't care about the mechanism. they care about the brands themselves. >> largely every consumer in eric many, they pick things from their prodband services, from their broadcast network. on their mobile device and create their own schedules.

what will dominate in that world is is strong brand. >> let me just ask peter, if you're not comfortable, don't talk about it, but you've mentioned some of things you've looked at and i think invested in were in far flung places. as you left fox you looked all over the world and one of f the things that we're copying your success which we hope with 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. there's never been a more explosive time for business creation. or dislocation and that creates opportunity and that opportunity is not just in the u.s. >> yeah 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 in the neighborhood of 70%, 75% international.

and these big brands jury asik park planet of the apes, have enormous residence all over the world. you're beginning now to see that with various media outlets. we have a number of investments in india with this, in the next ten or 15 years will be the biggest country in the world. it's a great place to invest. we have -- part of the great connected societies in indonesia. very aware and what happens with all of this, cliche but made the, you can because of technology, almost any piece of content, any brand anywhere in the world on the -- and in the long run, i think the -- the

access to, largely -- movie theatre. you now have access to them 24 hours a day all over the world. that pie will continue to grow. and it will be exciting. >> so, guys this is a jump ball question because it's something you both know well. there was historically this link between marketers, messages, i'm going to focus on advertising again for a moment. marketers, messages and content. as we know it was never free. the quid proquo, the exchange value was if you watch or listen to these commercials or tv or radio, i'll give you the content. it wasn't free. didn't like you were paying for

it. you were paying for it with maybe the most valuable xhod commodity, which is your attention. but that's changed. if you were brand, if you're ewan lever or coke or proctor and gamble and you need to get that message out, how to you do it? at the same 3:00 in the morning that the brands are waking up the content creators are waking up and the distributors. advertising has supported this for so long. what's the advice? >> i think that one of the things steve did at nbc universal is he took all the district part of the company and put them under linda. one person for the first time in the history of all the various parts and said when we sit down with coca-cola, let's have a realistic conversation about on demand. every possible -- to special

short shorts on youtube. television and yet the brand is bigger than ever. we've been looking on the technology company, give you more data and i think you'd boil ut 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, the it's been a stab in the dark. i think all of us are trying to help those customers have those, and those companies connect each other in ways that are positive tr everybody. >> and brian, i think it's fair to say, the free wheel play you made is is kind of the thing that everybody points to in the industry. that next generation in terms of

advertising, serving. >> let me take one second on that. very dynamic companies plays a small part in trying to pinch to digital from the analog world. but we're talked about china, peter. because i think for comcast, our opportunities are going to be different than probably what most people are thinking because it is such a new world. we should keep our eyes open. it's not live in the past. went to china to visit where most of the people, we have 150 software engineers, mostly pards and masters coming out of beijing university. hiring another 100 or so a year. we're building a theme park in beijing. and fast seven 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 and this is, these are all

things our company didn't do 24 months ago. we will be on that journey, there's no quick sound bite answer, but that brand will exist. brands are going to thrive and need to reach consumers and all of us are chasing how best to do that and how to help the system continue the momentum it's had all these years. >> i was at the full screen new front yesterday and one of these we were talking about, if you look at sort of under 34 demos, 18-34, there's beyond the pitch, there's a lesson here. we have 15 20 creators doing more than ten, 20 million views a month. more than virtually any cable channel. and what it really suggests is those creators, they are ultimately brands. to their audience. you know, greg a brand. fine brothers, a brand. what you've seen is we're going

to partner. everything old is new again and it's sort of coming back to advertisers associating themselves with content brands. if you're an advertiser and can get close to jimmy fallon, good example. does a reasonably sized audience every night, but a huge audience beyond that, to a degree you can get associated with jimmy fallon with a fast seven. i think that you know, the old business in some cases where it's a strong, that would be a great buy. where it's not, you would be throwing your money away and you're going to see brands get closer to key creative brands on their own. >> give me a last thought. this is a golden age of television. golden age of content.

>> jimmy fallon are in the same and rightfully so, comcast. >> you should get a new show and obviously fallon. >> i think we're out of time, but i appreciate you spending the time and sharing your thinking. and thank you all for your attention. gl thank you. and now, ladies and gentlemen, the host this morning's final conversation,

once again, please welcome the coexecutive editor of recode, kara swisher. >> so, we're going to have a talk in a second with sue armstrong from aol. want to bring someone who's doing a lot of things in internet video and talk about where it's going. i have written two books about aol, which is a lot. and know the company very well and it's it rated so drastically over the years. it would be a really good example and what's behind the orangeal creation of video and where it's going. so, tim armstrong. so, tim, we are, we have been, i've interviewed you, i'm going to put this on. thank you for dressing

especially. i appreciate it. >> i got dropped off. there's a microsoft convention across the street and i was debating what to wear i went in and said to my assistant everybody's dressed like i am. took me about five minutes all these microsoft signs are all over the place. are they getting back into cable. they said, no, this is a microsoft convention. now, i'm back -- >> good. i almost, i thought i told brian, thinking of coming out here and cutting off his tie but gave me millions of dollars in investment i thought that might not be a great idea. could be adorable or let's have her killed. so, maybe a little bit of both. any way, let's talk about, where things are going in video. now, 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 someone was there and you had called me saying there's not

going to be any video or audio and i said, oh, there will be audio and second there was audio. what's wrong with you? >> first, we're -- you know i'd say one thing that's really important to us is is communication. overall, the business and i think we have 5,000 people at aol. almost all have gone through a hand picked process to be there. talent and communication are two of the things that are first and foremost on our agenda and we do these company meetings which rebra broadcast out. everyone's organized around that. we have big infrastructure behind it. and so, last time we did it i said why don't we just perriscope it and the reaction was what's that? second of all, why would we do that. really, the land of video is changing so quickly. if we don't get ourselves internally used to being

transparent and the company without walls like how do we basically use the best infrastructure to get to the highest leverage in the world now, so i perriscoped the meeting. we gave people about a half hour notice and said the meeting will be on perriscope and it was amazing to watch. about 2,500 people joined the meeting and i'm guessing it was probably hundreds of people outside the company that joined it and in the process, it basically taught us that day that you could do things really quickly and fairly good quality live versus all the infrastructure we built up over time. we saved money. it was instantaneous. our engineer, while i was on per scope, i was watching our screen and we had e-mails coming in saying hey next time, we're going to build this. so, later that day, we had two other big content things happening at aol. all were perriscoped.

if i had sent out a memo let's think about how we to these things would have tested and everyone would have put it in the back door. the fact we did the company meeting that way, the whole company shifted, live video can be cheap and effective. >> that's what's happening elsewhere. it's happening really quickly. this has happened before. there has been live streaming. there has been this idea and i think it is the big idea right now. between mere cat and facebook and others. how do you, you're talking about tropping droppinging costs and farouk. right now, you just did the -- and you spent how much money on content? >> we spent tens of millions of dollars a year. >> billions. billions. how do you why are you doing that? the light up light up a cigarette on your video show,

but what are you doing? what is the goal of that? what do you think the rest of everybody doing? >> first of all, i would say that a global perspective and i'll get down to why we're investing in content. if you look at, there's 900 million paid tv connections in the world. there's roughly 2 billion people on smart phones. that's going to go up to 4 billion in the next few years. so, what peter was just talking about how big kisdistribution's gotten, in general, we're in a company doing two things. building a media platform on a b2b side and provide content and ads to about 40000 other publishers. we're investing in what they think is content that will look like the future of content. the show you're talking about is a show called connected and it is essentially driven by what i call machines smart phones. the entire show is shot almost like mere cat or perriscope from the viewpoint of someone's phone

and amazingly, we've had really good activity, but some of our shows now that we've invested, our three highest rated shows had 15 million users on them and that's an incredible number when you take a step back, but that's an incredible number in united states for stuff we're doing. if you take a really big step back, the fact you should reach 4 billion people in the next couple of years, that number, that 15 million probably needs to be 150 million and that's where vesting in some of the big content brands like the "huffington post" is going to be really impactful. >> video seems to be your biggest. you bought the video platform and have been pushing this idea. everybody else is google, a amazon, netflix, apple eventually. is it a big threat to the, are these, are you -- do you want to become the cable industry or not

calling it the cable industry? >> the way i look at this is there's going to be a set of companies from the cable landscape that we're showing things like brian just showed. we just announced a big deal with nbc last week to put internet programming, tv programming in ads together in a different way. so i think there will be a number of companies that essentially get together and do it together, internet and tv. and then there's going to be some companies that will get left on the sideline. there will be internet companies that don't get the proper amount of focus and there will probably be traditional companies. i think we're at a tipping point. i've been doing this now for 20 years and i think this is absolutely a time period almost like the beginning of the -- where there's a year that happens. the advice recently, he was

taking all this. happen quickly? >> i think, we invested four years ago and in content. nobody wanted to -- internet was going to be the story of everything and everybody thought video would never be high quality enough to make a leap today, so we've been early investors in that. we had a company that was in peril that needs to be turned and and i think the attributes of aol when we got there and i would say the piggest attribute at aol was when you look all the metrics read. there was no green.

almost everything was down. trz if you look at the traditional media companies their pnls and all their major lines, red red, red. if you look, you'll see red. and if you, just a high level stat, right now, i have something, 4m video and mobile's growing 40%. which is a huge growth rate compared to what everything is growing. there's $40 billion by 2020 that will transition from tv to mobile video. if things stay on track. 4% of the population in the united states, 96% outside the united states and if you take a big leap back and think about where things are right now basically, those fours are going to be a really significant shift

because when there's 4 billion people on emotional machines. >> why do you call them machine machines? >> they're, your kids if you watch how your kids use their phones, they don't talk on the phone. they're basically operating a machine. whether it's a communication machine, video machine. we refer to this as a cable box in my pocket and i think that's an important concept. when there's 4 billion of those floating around and there's lots of high quality video going between cable companies, television companies and the internet, it's a very powerful way to build megabrands. very few brands that have been thought about how do you build a 4 billion person universe on media. on that screen, but you're going to have to. >> a watching machine, really, the reason i don't machine it's very terminator and i have sad

feelings. >> it's a beneficial machine, but it's a machine. it's perriscope, i just replaced in our company meeting, my iphone 6 plus with what is 30 machines and people trying to do a global video conference with wup. one. that's how po powerful it is. if you look forward ten years what's the company going to look like, i think you're going to see massive rates for talent, infrastructure, putting the internet and cable and tv together and you're going to see a real massive infrastructure rate on advertising. >> i'm going to go through each. tell me where you think they're going. the internet companies. google. >> i think google is -- >> you've worked at google. >> yes, for ten years. very, very search focuseded from a platform standpoint with burgeoning interests to markets

outside of search in general. >> video or just -- >> video is one. autos are one. they have an open field of things they're doing. this is true for a lot to have big companies. you're a big company, need to grow, you need to do things that are big. so you're seeing things like autos, whole bunch of companies become a big target. >> can you imagine them buying a cable company? keep talking about them delivering. >> i'll give you the end of movie prediction, which i think 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. and a human is not going to want to have 20 companies they're giving their data to and a human is not going to want to figure out all the channels are on 20

devices, so i think you're going to see a regulation of all the companies down to what the human capacity is and almost everything you look across the world that humans can handle and know about a is is you know, around the rule of seven. so, my guess is as a human being, you'll try to optimize the fewest amount of partnered 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 ad systems are the same thing. there's 200 companies in ad tech. i think there will be seven to 15 major companies over time. and i see the same thing happening, video's a hot word right now. and when we got into it, very few companies were into it, but now, you see hundreds of video companies. that's not sustainable. it may take five or ten years, but the same thing happened to auto companies. they were local companies. >> amazon. what do you make of their efforts they put out some great

shows, they've been -- >> i think amazon's doing a great job of building a big mote around their business and content is either part of that mote or it's its own mote. but you know, i think also each of the internet companies has a different relationship with users. if you're a facebook user, you have a different relationship with facebook and google. amazon, different relationship overall, so i think you're going to see the specialization of these platforms become more important. >> let's talk about facebook because i think that's one of the companies that people, 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 at least. but that's really the level of you know, kind of video that's on there, but then again we put our president obama interview up there and that's where we got most of our views. it's interesting. we had to put funny letters there to get people to click on

it but how do you look at facebook? to me, they're the player. >> they've done a good job in video. the bottom line is i think we can look at all these companies, every one is essentially vesting in nonxhodtized areas. value of content is going to skyrocket. high quality content is going to skyrocket, which is the opposite of what a lot of people think. second piece is is advertising is going to get really expensive. trying to convert a customer in digital and its environment, we have these companies, add places are going to go up. double digits the last three years. overall and i think the bottom line is that consumers are going to end up getting a big win out of this because you have some of the best companies in the world the most competitive in the world basically trying to get down to this rule of seven. there's going to be a lot of companies investing a lot of time and energy. >> i'm going to ask about two more. china, and in all of them, you

imagine them being a big player here? just a global thing? >> definitely. i have a board slide i gave to our board last year and it has three things. the amount of users you need to deal with every day. the amount of content producers and ad dollars and that's slide for me plugs in the fact that in five years, all these networks will be globalized. we live in the ice united states. the other companies from other countries are more interested than coming here than a lot of companies are there and when you go to japan or china and look at the scale of the users they have on their services and their services are more integrated over time, if they come here it's going to put tremendous pressure on the companies like ours and everybody els to compete in a much higher scale. >> that's going to be apple. they're try inging to watch thing. you don't have to watch. i have the wap. i like it. i've been testing it. the "huffington post" on the watch.

probably can't see it. >> it's tiny. >> that's trending. so, basically i like it. i've been using it for a week or so. here's what apple does a great job of i think. apple does a really good job of thinking about the rule of seven. they human beings over time want cure rated information devices. >> they're dwifing you a -- >> they do a great job. >> you were talking about taking your iphone 6 and becoming the broadcasting network. how do they play? they have veered away from content. they're very into their devices. are they going to become the essentially the cable company eventually? >> i think it's going to be a massive fight for content and services. i think this is my prediction. i've said it publicly before. i think devices and networks have the potential to get massively xhod