. "press: here" is sponsored by -- this week she calls herself the queen of good-bye. pat mccormack hired and fired hundreds of people at netflix. hackers get into a company network using the breakroom refrigerator and people are making money slurping soup. our reporter laura from "usa today" and mark from bloomberg this week on "press: here." good morning.

i'm scott mcgrew. i just met my guest and she seems like a very nice woman, but petition mccord's idea how to make a company make me uneasy. she was in charge of hiring and firing people at netflix. she was key in making netflix the juggernaut it is today. netflix was not a family and they quickly cut employees it no longer found useful, even those that helped create the company. i'm quoting, hard work doesn't count. she estimates she's hired hundreds and has a new book called "powerful: building a culture of freedom and responsibility." she's joined by laura of "usa today" and explain to me hard work doesn't count because my

mom told me different. >> hard work in itself doesn't count. i love your introduction. pretty on the edge. it wasn't like we hired and fired -- >> no, you fired me after i worked hard on making the company big. >> are you in the same job you had after college. >> no. >> no, you're not. you went place to place -- >> up the ladder. >> up the ladder, around the ladder. what i advocate is honesty, how work really works, right? sometimes you hire somebody to do a job and five years later they've done it and they built something and it's a wonderful thing. it's working fabulously. usually those builders are not the maintainers. i'm talking about being straightforward and honest. i love being the queen of the good good-bye because so many

people do it badly. >> in the silicon valley legacy companies are going through huge shifts that involves thousands or tens of thousands of layoffs. they say, we need to get into this, cloud computing, streaming or whatever. but i think some of the older workers will say, this is just sort of masking, pushing out older workers. even from a company's perspective, if you have the best of intentions of trying to bring in new skill sets, how do you do that without falling -- acting in an ageist manner? >> let me comment on two things you said. one of the reasons why i wanted to have an agile workforce where we could be selective about who was on the right team at the right time to do the right thing is when you do that and you do it as the company evolves and grows, you don't end up with masillaeoffs because you don't carry a bunch of people until their skill set is dead.

anybody in silicon valley, especially in technology, knows from day one, you've got to keep up with it. it evolves all the time. i've been here 35 years so i've seen this movie lots and lots of times. i do think there's pain in that. i also think there's going to be a really nice synergy -- i hate this word -- between the evil millenials and aging boomers. young people make me feel younger and i'm working all the time. i think the way we work is going to be different. your notion of, i'm an older worker, i've been here for ten years. the company owes me another ten because i'm not ready to retire. that's just not realistic. that's what happens is then it ends up in masillaeoillamasills.

own your career. think about how you might want to work when you're farther along in your career. i'm consulting now. i'm having a blast. i love netflix. i spent 14 years there, but this is really fun, too. there's lots of different ways to work. i think what i want to sell is the notion that the company owes you 30 years of service because it's not true, hasn't been true for a long time. >> in this corporate environment, are people just living in constant fear? is it a healthy environment for workers to think i could be axed at any moment? >> it's not like that, right? i know that is the takeaway and i know people want to put a lot of emotion into the terminology. there's a whole chapter in the book i use around the words, you're leaving, like you're fired. there's no guns, there's no blood. when you say things like that you make the person, who's done a fabulous job and totally contributed and is no longer

needed, feel ashamed. what i want to talk about is i think it's heartless and cruel that if you've done a great job, you've contributed enormously, you've finished up what we've hired you to do, we're doing streaming, that i don't now put you on a performance improvement plan to improve you're i think wh -- incompetent, when you're not. that's heart sxls cruel. we say, what are you going to do with the rest of your career? where should you go? how do you leverage your time here. at netflix at the beginning, what i wanted to do, it's in the book, i wanted to create a great company to be from because i'm a silicon valley recruiter and i know what makes your company great. >> before you put it in the book you had a powerpoint you would show the netflix employees and became famous. they called it one of the most important documents to ever come out of silicon valley where you

espouse this idea. we are not a family. we are a team. and i think the good analogy is baseball. at some times you have good pitchers, not enough hitters. you have to lose a pitcher. it has nothing to do with his ability to pitch. >> since i've been at netflix we've been on stage with award-winning coaches. i've learned more from them than any management book i've ever read. so the netflix culture did dispel a couple of mityths abou that. i didn't write it. we wrote it in collaboration -- >> that's the powerpoint? >> the powerpoint. we used it as an internal document for ten years. we wanted to do because we're a company full of silicon valley geeks. you know how they work. a geek is a digital person. good or bad, right or wrong, black or white, zero or one. right? anything in between, any nuances is a lie, right?

what we wanted to do is say, we want to write this down and tell you truthfully what happened. >> now, there is the point, though, i get the pitcher analogy, but there is the point i want to say, patty, remember when i stayed until 4:00 a.m. holding two wires to keep serviceon line while you went to radio shack, does that not count for something. >> sure it does. >> but you're firing me -- i'm sorry, sending me off to better opportunities or whatever it is. yeah, not firing me. >> but what about the time i held the wires together. >> but the wires are soldered. you were the best wire-holder we ever had. nobody ever touched you in the holding of wires. i want to ask you, really, do you want to continue to hold two wires together for the rest of your life? >> no. >> no, you do not. but you were good at that. now that you've built this machine that you operate, you leverage that. >> you just fired me and i feel

so good about it. >> i got interviewed by someone from new zealand and he said, sock me on air, patty. it was one of my favorite. >> i like you. we have to go to break. stig around and we'll tell our viewers we'll put more online. i didn't get all of my questions. if you're watching on television, up next that chill you feel when you realize hackers are calling from inside your refrigerator. when "press: here" returns.

welcome back to "press: here." the biggest threat, the refrigerator. in the nbc break room poses is that tuna fish sandwich no one is claiming. it's time to own up and get your sandwich out. don't eat it. our refribgerator is not connected to the internet. if it were, it would be a problem. internet-connected refrigerators are one way hackers are breaking into systems. ceo of dark trace, she's watched hackers try to break into internet connected cappuccino machines, vending machines and even smart light bulbs. the refrigerator is a true thing. someone told you a client's refrigerator was being attacked. >> it was a large fast food

chain and they had over 1,000 stores. in ten stores they were testing a new internet-connected refrigeration system and we could see the hacker scanning the system, finding these refrigerator and they could have changed the temperature, spoiling the food and creating a mass health zooish even if they didn't get into the rest of the network, when they could have done. they could have done a tremendous amount of damage. >> that's right. another great example is we had a casino that had deployed dark trace's technology. inside the casino they had a massive fish tank. it had an internet-connected thermostat. and the attacker just scanned the network looking for unprotected internet devices and they found the thermostat. what they were able to do is from that thermostat, they started looking for the high roller database. in the casino, those are the crown jewels. they were able to locate part of

that and they started to pull across the network, out the thermostat to go to the cloud. no our case, what dark trace does is we were able to use artificial intelligence to detect that's not normal. the fish tank shouldn't be finding the high roller database. >> whales, whales, whales in fish tanks. >> that's right. we're able to spot those, even though they're unexpected and stop it in their tracks. >> should companies have these internet-enabled things, though? i understand the value of being able to look up the temperature of the refrigerator, but it sounds too dangerous. >> when you look at the evolution of connected devices and the ces event just happened recently and the buzz was all connected devices and artificial intelligence. i think it's inevitable. there's everything from internet-connected lighting systems, heating and air conditioning systems, it's just across the board. so, i think those are just a way of life.

and there are ways to be able to protect them. that's the good news. >> well, after the big -- was it the mari botnet, they came in through the dvds, people woke up to the idea that you could be hacked. but now it's complicated for a consumer, i think it's like reset your router's password and this whole trail of how to -- how realistic is that? i mean, most households are not going to sign up for dark trace or maybe you have a consumer product coming along. it seems a little like the horse has already left the barn on this and what's the best advice for everybody's, you know, all these households out there sitting on these devices. >> well, samsung did actually invest in dark trace about a year ago. part of the reason for that was they knew this was going to be the future where consumer devices and smart devices were going to go. and so it is possible that at

some point this type of approach that we use could help protect even consumer devices, but we're seeing -- we saw this in 2018, where it impacts not only the consumer, businesses, and even impacts industrial control systems. users also internet connected devices in alternative energy, medical devices and hospitals is another great example. so, it does impact really every sector out there. >> you're, in fact, protecting an ultrasound company as well. >> that's right. there's a bay area company called qt ultrasound, and they have a next generation kind of mammogram that uses ultrasound. it reduces the false/positives. and they recently got fda approval. and they used dark trace to protect it. when you think about it, it's like what are they really trying to protect. there's two things. this is very common for all

silicon valley startups. one is intellectual property. how do you protect the i.t. that's at the heart of the value of the company. the second thing, of course, is patient data. how do you protect the data when it's being transferred over the internet from this connected ultrasound machine to the radiation laboratory. those are the two things we're protecting against. what's nice about this is we didn't know anything about this particular device. it was brand-new to the marketplace. we use an approach, and while we all have skin, occasionally a virus or bacteria gets inside. we have an immune system that finds out the bacteria is not normal, it's not part of us and we have a precise, rapid response to it. >> one more question. >> yeah. i was going to say, i think it's still pretty early days for consumer devices to be -- even if somebody buys a refrigerator

that can connect to the internet, they usually don't do that, but one question i get asked a lot from people is -- who are interested in, like, the amazon echoes and googles, how hackable are those devices? people are really concerned that somebody's just going to eavesdrop in on their living room system. >> those voice-activated devices so far, even though the hacker community has done quite a bit of work and research, they still have not been hacked into to date. however, we have seen similar devices with microphones. one example is there was a video conferencing piece of equipment that was in a law firm. and it happened to be during very sensitive merger and acquisition discussions. the attacker, i think, probably knew what they were targeting. they targeted the video con equipment in one conference room but they didn't turn on the video. they only turned on the microphone. they listened and they recorded. and i don't know eventually what their purpose was, was it to

leak the information? was it for their own financial gain? again, we were able to detect it because it was unusual. and we had no idea. in many cases, you don't know really what the attack victim is going to be or how they can come after you. we've seen it with video con equipment, telephone systems. >> playing internet whack-a-mole with internet security from dark trace. thank you for being with us. "press: here" will be right back. will eventually impact evey

driver in california. the new requirement we )ll all have to meet. plus á it looks like we )ll hava wet work week ahead. kari tracks any changes to the forecast.. join us monday morning from 4:30 to 7.

welcome back to "press: here." there's a thing on the internet called muk bang, and it's a broadcast of people eating. almost always pretty girls. eating a lot of food. this would be just one of those sort of weird things on the internet, except these girls are making a lot of money doing it. here in the states, it's very popular to watch people play video games. live broadcasts of someone else playing xbox. the audiences can range from a few dozen to tens of thousands. neither a pretty girl or playing video games, but he's part of streamlabs which helps company stream video and star getting

money. streamlabs processed around $100 million in payments to streamers last year alone. thank you for being with us this morning, ali moiz. are they advertising to their streamers? where is the money coming from? >> thanks for having me. i'm not pretty, i'm not a girl, but mostly behind the scenes. the money is coming from the fans. the fans -- >> but why? why are they giving money? just the entertainment value like -- are they being advertised to? >> i'll tell you the secret. streamers tell their fans, support me by giving me money. that's what the rest of the world thinks is happening. what's really happening is fans feel like they're supporting their favorite streamer but they're also getting their name and recognition up on stream. so, imagine you have the show here, how much would a viewer pay to get a question up on screen or to get laura or mark to ask a question that they have from a guest?

is it worth $1? $5? $10? somebody out there will pay $1,000. >> i guarantee you our business developer is writing this down. they pay and the money goes through you and you issue a paycheck? tell me about the mechanics of that. >> it's really simple. viewers go online to a web page, like a website that host the streamer they set up and operate. they pay with their credit card or paypal and the money directly goes into their bank account or paypal. we don't keep any fees on it. and, you know, the fans are paying their favorite streamers or celebrities or people eating ramen or cute girls or people playing video games. it's a huge phenomenon. there's a funny "south park" episode where randy is talking to his son stan and he says, back in my it day we used to play video games and the kids are like, well, dad, now we just watch other kids play video games. so, the world is changing. you know, i think what's

happening in asia is a huge sort of sign of what's going to happen here in a few years. live streaming started off in games there ten years ago, 15 years ago and it's big here now. but it's also moved beyond games now. in asia. so, those girls eating ramen, girls walking around shopping, streaming from your phone just walking around doing things in the railroad is bigger than game streaming here and i think it's going to happen here in a few years. >> so, it sounds like this is a what has made the youtube creator so phenomenal breakout successes, the local pulse of the world. i mean, is amazon twitch positioning itself to be just as big as youtube in that department? we've seen this big fight between amazon and youtube over what can go on what device so, perhaps, giving amazon some more leverage in that department?

>> absolutely. i think that's the bigger prize that they're all fighting over. it's not just amazon's twitch and youtube. our platform supports, you know, multiple social media platforms. >> twitch is the big one. >> twitch is the big one here, yes, in the west. there's four companies in china that are as big or bigger than twitch. there's multiple ones that are nongaming related that are as big or larger in the rest of the world. but here the two big ones, like you said, are youtube and twitch. certainly live streaming is a vector to try to capture a part of the broader online video markets and to be fair, recording video is larger than live streaming. they're fighting it out. we publish quarterly reports and we crack market share and twitch is still very much the market leader. somewhere around 60%, 70% of the

market in terms of active streamers. we have over 700,000 active channels on our platform and twitch is still very much the market indicator. about 90% of these transactions of which we processed 100 million last year are on twitch today. >> you said you don't take any fees. how do you guys make money? you have your own tipping page on there? >> you know, for a long time we did. that was interesting but you can't really pay people doing that. this is coming out of asia, but we charge a little bit extra for added features. so, if i'm sending five bucks to scott because his show is great and it's awesome, i can pay a little extra on top of that to add emotes or funny cartoons or glitter or hearts or -- >> did you ever think -- what was your job before being ceo of

streamlabs? >> i've been an entrepreneur all my life. i had another gaming company. >> did you think you would be selling online glitter and processing $100 million in transactions to sell online glitter? >> i did not. i can't even explain this to my parents. they don't get it. i did not. and the way i try explain it to them, it's like it's a new form of television. that's what it is. we've all seen "jeopardy!" right? now there's a live streaming version of "jeopardy!" that's as or more popular called hq trivia. >> i played it today. >> it's blowing up. top of the charts on the app store. i feel like this is what all the kids are watching. the millenials are spending more time on youtube than television. i haven't had cable for ten years now and they're spending more time on twitch, spending more time on youtube, any online video.

. this is really a new form of television. it's an interesting analogy. going back to early 1900s when they invented going from radio to tv, the first tv show were actually two radio show hosts talking to each other. >> it was just radio on television. >> it was just radio on television. because they didn't know what was possible with the new format. >> i have -- that's all the show time i have but i want to ask you a quick question. if i wanted to stream, what's genre make the most money? i'm streaming, drink soup? play video games? >> be who you are and do the same thing there that you're doing here and just be yourself. bring -- live streaming dog show. >> this is fantastic. i got fired by patty mccord and receipt nude by ali moiz with streamlabs. thank you very much.

welcome back. at the top of the show we were talking about internet broadcast at pressheretv.com. thank you to my guests and thank you for making us part of your sunday morning.

it may be a laidback sunday in d.c., but the nhl's metro division is as jammed as a rush hour commute. the caps are first in the division led by the generation's most prolific goal scorer. but today alex ovechkin is on the verge of a different milestone sitting on 499 career assists. the current nhl assists leader is jake voracek with 45. his flyers are sixth but have climbed to within eight of the capitals with a game in hand. today's metro stop is