>> rose: welcome to the bedroom. bedroom. our guest tonight is shane smith. where traditional media is embedding with the marines. we're embedding with the young people, the anarchist groups that conicle their age. >> rose: we conclude with bill gates who i profile profiled on0 minutes" earlier this month. >> whenever you see a mother bringing a sick child into a facility, it's easier to relate to what if that is my child? you realize how crazy it is with the world being rich enough to support all sorts of frivolous

things that those basic things still aren't being provided. >> rose: shane smith and bill gates next. captioning sponsored by rose communications

from our studios in new york city, this is charlie rose. >> rose: shane smith is here, the cocowrnd and c.e.o.st internationamedia company vice. he has said he wants vice to be the next cnn, and mtv digitally. what started as a magazine in montreal in 1994 has become a global brand, valued, some say, at $1 billion. online video accounts for the majority of his revenues. but in april this year he launched his own serious on hbo. shane smith is the executive producer and lead reporter. here is a look at what the trailer for "vice." ♪ ♪ >> this is the most dangerous quarter in the world. if i go on that side, i can say good-bye to my toes.

rose: i'm pleased to have shane smith at this table for the first time. what dijust e? tell me in your own words what vice on hbo is. >> i saw a scissor real. "vice" on hbo is a more condensed version of what we do on "vice," which is we try to find the best stories in the world and try to tell them in a way -- >> define "best stories" for me. >> well, i think we've come up it's the absurdity of the modern condition. we came up with that when we were covering a two-week traffic jam in china, not a two-hour traffic jam. it started in beijing and ended

in moan goalia, and we were reporting on the microeconomies, and i was sitting there saying i don't understand pup have to make 4% more cars every year-- so the car companies can break even, yet we have a two-week traffic jam. where are all the adults? who is making or not making these decisions? it's absurd. it's crazy. we decide to do a show about the absurdity of the modern age or the more than candidate. >> rose: we heard all those d espn, and mtv. you also said you want to be the time warner of the street. >> we have been called that. we already are the time warner of the street. >> rose: define that for me. >> everyone always asks us what is vice? and quite simply we're a media company. we do books. we do records. we do magazines. we do mobile. we do tv, we do film, and, of course, we do online. we're a media company much like time warner but we're from the

streets. we're kind of a media company that's a bit younger and weirder than media companies are traditionally perceived. >> rose: and you'll be programming-- you also have a youtube channel, too. >> we have eight youtube channels. >> rose: eight youtube channels. >> we're well nope for our youtube success. you know, in the beginning, we started online video quite early in 2006. and at that time we did deals with youtube and cnn, and all the big platforms but they weren't great deals. they were great for the platforms, not great for us. now it's a great time to be a content provider becae companies like utube are actually paying, netflix is paying. >> rose: tell me about it. >> we did a deal with youtube and came out as one of the fastest subdwriefers in the history, not just original channels about the all of youtube. we have one of the highest video times on site at 28 minutes. >> rose: meaning people watch

you longer than they do anywhere else? >> they watch you 28 minute across the board. we have the best-liked versus disliked ratio. we have all theseet riks. >> re: and why is it, do you think? why? why? why? >> it's great content? >> rose: content they don't get anywhere else so they will magnetized to come to you? >> we do it in their language. we were a gen-x with i'm gen-x, and we did things overnight and all of a sudden we became a gen-y company. the first thing we ever made was heavy metal in baghdad where we follow the only heavy metal band around baghdad. we made it for an online piece 20 minute long. our editor said this is ray feature film and he cut it and

it cost us $25,000. it won berlin film festival. we made a lot of money out of it and realized, oh, at the time online cone tent was synonymous with crap. and then there was tv which was less crap and then there was the ahhhh! the holy grail of film. we're going to make high-quality content if you put it online, it can go to film, it can go to tv? it can go corporate quality content can go anywhere. it has to be good enough that it can go anywhere. >> rose: quality is defined asicm leaf it smart in execution? it's smart in originality? it's smart in words?

and smart in something else. >> i think what happened in tv-- if you look at the number one show around the world it's "the voice." tv becomes a derivative itself. there's a hit, and we'll juchtd do 50 things like that. the problem we had with online is it is a better medium. if you're online, you can take what your viewer is doing. they can have communication. they can chat. they can comment. it was a better platform but the content wasn't as good. so we said we have to be better than the content that is on line right now. >> rose: i'll tick off some of the things people say about you up and know them all. does any of them bother you? >> no. >> rose: he sensationalizes everything. none of that-- andour rtort

to that is, hey, i've heard it all before. and, b, it is true or not true? >> when we first started vice, we wanted people to either love us or to hate us. we just didn't want to be middle of the road, sort of c-minus -- >> don't be indifferent. >> exactly. we've been the subject of criticism since we began so i'm not afraid of it what we like to do with the story is i want to punch you in the face. at the water cooler or the bar, can you see that? can you believe that? i think we're guilty a lot of times of not sensationalizing. i think we're guilty of the opposite. i think, here's a serious problem, bit it could be this or it could be that, we can look at both sides."

if you're talkin talking about e change, guns to our hes environmentally, if you're talking about the potential threat of nuclear war, that should be a punch in the face. that should be, like, what are we doing? where are all the adults? the other thing is our audience built us, and every time traditional media has criticized us we get more followers. >> rose: they like the fact that that you are so different-- >> we're a challenger media. young people, gen-y, two things-- a, veteran disenfranchised. if you look at what is happening in europe, 50% unemployment.

you take away their future and that is going to explode. we're the voice of that anger. >> rose: where are you the voice of that angle. because we're embedding with the young people, the anarchist groups, the right-wing groups, and no one else is doing that >> rose: when you look thea things like north carolinaue went to north korea for what reason? >> i've been to north korea twice. >> rose: what is it about north korea? >> it's the hole grail of journalism. you can't get in, so everybody wants to get in. i grew up at the very end of the-week-old cold war so the rhetoric was very interesting. and i 21 eastern europe right after the wall came down, and i was smokd because they had cars and worse apartments but by and large they were very similar.

people are just people. north korea is the last of this socialist/utopian cult of personality state. it's much like russian inspector paulin. it's fascinating but you can't get in, especially as a energyist. >> rose: we're much more organized than north korea. >> i did two harshly critical documentaries. when we were doing the shoot inside siberia. you've taken the train for four, five days. the producer who got into north korea we were talking and said the craziest thing about north korea is they hate the americans. they were the sort of imperialists, the pig dogs.

they have the magic basketball. they love the chicago bulls. we thought that's just absurt-- it would be interesting if we brought the chicago bulls to north korea and get a really unique perspective we've never seen before. we asked michael jordan. scotty pippin is still playing. and then dennis rodman said he'd go and we round the it out with the best vibes on the business. >> rose: what did michael say? >> his camp says, "we're not interested." a lot of people don't want to go to north korea. against all odds the game happened-- when do you think they get you in. >> we realized that wasur way

in and it work. we did not know he would show up to the game. we just finishes the documentary today, and all the criticisms will be answered in the documentary. it's best thing "vice" has ever done >> tell me that the criticisms was, again, north korea is an abturt place. he is an absurt character. it's a grea story a he's the mirs fern-- our correspondent drive buffy was the second-- to me jim kung ill. my favorite criticism was the state department saying they should have taken the food and given it to the poor people. and you're like, "the state

department who had dinner with hitler, idimine-- i would like ton w many times they have refused the food. i would argue zero. they were being attacked and i understand that but to say about us. by the way, you can't get it to the people quay. but for us to be mentioned by the state department -- >> how close did you come to getting an interview with him. >> we have the interview. >> rose: you have it. >> i just finished it today and i'd lov for you to come see it. we're going to do a half an hour on hbo. they add more material. we're going to release a longer version -- >> i knew dennis talked with him and sat with him and all that and had whatever kind of

relationship but i didn't realize you had an interview of some substance. >> we talked to him and there are a bunch of people who talked to him. one of the things thaft very interesting is you havenort real estate, through the a lot of anti-american rhetoric. and the next morning on national tv, kim jung ill at the party gave a peek saying we won't this leads to more cultural changes, et cetera, et cetera. and you have the people in north korea wake up up, seeing the grand marshall- marshall aka-- . so for us it was pretty -- >> do you think this will change anything? >> there are 53 years of history. i don't think it will change anything quickly.

kim jong un was educateed in the woaft, he liked basketball. >> rose: his father liked basketball. >> his father like backs, his grandfather -- >> he was ther. >> and he was trained by the associates. annow kim ki kim kim jong un. upon one of the worries is that his grandfather was much more hyde line, you have an dreamt. if you want to get in the time is now. >> ros does it depend beyond basketball to movies, to art, to

music? >> his father's love of american culture is-- you know, he has one of the largest film collections. he loves musicals and the horror movies and science fiction movies. in fact, when we were there, they had a band for-- at the dinner come up and they were playing the theme from "dallas" over and over again inexplicably, and the theme from "rocky." they're secretly obsessed with ameran culture >> re: so how does this represent what you want to do in the future? >> right. >> i think what we like to do-- and this is a perfect example of what we like to do-- we like to have a hook. we like to get into places and see things other people don't see. even if you get into north korea, which is impossible as a journalist, but if you do get in you're taken on the exact feed. so i went on a tour and i have

onest most successful documentaries online. i just spoke in a different voice, and sang a sex pistols song and it became first. on of the first half of the documentary is something no one has ever shown about north korea, let alone the game and the dinner. that alone. if it exposes how crazy things are. the in fact that we had to do a crazy basketllame to get to meet this guy and there is so much saber rattling going on between our two countries. and during this season and -- >> you had no guarantees going in. >> we did not know. it was a big surprise he showed up to the game and i it was a bg surprise that we get invited to

dinner. they had watched my documentaries because when we tried to get in i applied a they said you're part of the dirty swrn. >> rose: and you look at the future, which will vice be with respect to syria? with respect to the congo and place where's-- >> we've done a lot of documentaries on congo. we've done a lot of documentaries on syria. i think we've done eight in the past six months. what happened and one of the the biggest successes we've had on the youtube channels was long form news content. we just had an documentary about america withdrawing fromming afghanistan. the training of the afbegan police and army and how it's

going. y we got leaked an e-mail from the american army to the afghan army and the police saying there's a cumentary that just came out on vice about the afghan police. here are the interests to the questions. it's a fantastic documentary done by one of our people. >> rose: what happen between and you gavin mcginnes? we started out, there were three of us, we started the magazine-- there it is. >> rose: who designed this magazine which i always thought was interesting? >> we have an in-house art department. we do everything in house. around 200of 2006 we started . >> rose: american apparel. >> around 2006 we did more

online video. >> rose: philosophical difference in what you were becoming and that kind of thing. >> look, you know highway of how it is, you start things as a kid and when you grow up you want to do something dfferent. anhe wants to do his thing. and we said great. >> rose: where is he now? >> he's in new york city. >> rose: so there's no friendship. >> that brings you a lot of join. >> rose: no, no, it doesn't bring anything. i'm just interested. this is important. we starts out as a magazine and we changing the company. overnight we changed it to doing video, to being more international, more news stuff, re serious stuff. people grow at different rates. >> rose: what's interesting to me-- of course they do.

it happens in relationships. it happens inspect everything, in partnerships, relationships. it's interesting that you once said to rupert murdochaise remember this quote, "i am the future, and you represent the past, and we should be in business together," or something. >> i didn't say we should be in business together. i said i understand i have what you want. i have youth. i have social. i have online, and you have none of those. it wasn't just rupert. everyone was making the pilgrimage to williamsburg -- >> see if they could find the magic bullet. >> and rupert tweeted and it caused a big kerr if yo if you . i know why. because we have all the things that they want. >> rose: you know what's interesting, the idea that somehow young people don't like news. >> it's wrong. >> rose: it's wrong. >> 100% wrong. >> rose: it's totally wrong. >> our success on youtube is o

news content. it's so successful we're launching a news channel with google, 18 languages, 18 countries, 24 hours a day, because it has been so successful. ?owrks they are turning off traditional news, and that's i think the fault of trcialght're traditional news media -- >> what's the fault? >> if you're gen-y and grew up during the last invasion of iraq, especially in afghanistan, and what's come out since-- there were no weapons of mass deruction. anyone with ha a brain knew saddam hussein and the ba'ath party was a secular regime that were anti-al qaeda. but it became seen as almost anti-american to question theinivation, and you say i thought that was american to question government and powerful people. and i think it was the failure of the fourth estate in that that young people grew up and then found out the truth and

then started looking at bloggers who were aggregated by drudge or huffpoo. for example, they said i got more out of that news-wise. john mccain was saying everything is fine, want war is over and we were getting shot at. young people turned off in droastles, and then they started fiengding their own information from bloggers and blog acgat sites. if you look at it they're consuming more news and more interested in news becse they're being affected day in and day out. if you look at what's happening in europeux and to the less expense here. the unemployment, the disenfranchised, the rage, the anger. >> rose: what do you think of al jazeera? >> look, i think-- they're a

challenger as well. and i think they've done a great job at being a bit of a check. i don't think they're perfect. i don't think any snooze organization is perfect, nor can they be. they've done a good job. they've particularly done a good job in being the voice of an area that is always in the news but yet is particularly one sided leerkt say. if you look at bbc, if you look at cnn, if you look at traditional news media, they look at middle east in one way. al qaeda came along and said we're going to look at it another way and i think they get better access because of that. >> rose: the interesting thing, too, is you're making money. i is have seen numbers like the $175 mlion i revenue. >> rose: somebody offered you

a billion dollars and you said no. >> yes. >> rose: is raises the question, are you essentially, when push comes to shove, a businessman, rather than a journalist? ss. >> i run a business and i do journalism. quite frankly -- >> what are you, at your core, a businessman more? it was a famous quote about something which said he's more rockefeller than edison. >> right. i would say early on, i was more of a businessman because i had to be because we didn't have money. and now our creative director spike jonze said, "what would you be doing-- he's a genius. he said what would you do if you take money out of the equation, what would you be doing? >> i said i'd do less of this and do more of this and he said do it. and i did e-but you had to make money first. >> but we started making more money, just by doing it, and it

becomes fun, and you still make more money. i don't know where work ends and fun stardz because it's so much fin. and we interveered ian mcchi air, punk rock guy, i don't know when americans started building companies to sell them. i get to work with my best friends every day. i have the best job in the world because i made it. get to do whatever i want. i want now to put my cultural fingerprint on the fabric of life, and frankly, you-- the the most arrogant thing i'll ever say is i don't care about money anymore. we have must have not to care about it. i hang out way lot of older c.e.o.s types because it makes me feel much better about

myself. >> rose: and they want to len from y. >> they all say the same thing it's saddest day of my life is when i sold my company gli can tell the kind of people i i interviewed, steve jobs. steve jobs felt like his most important contribution was not the iphone or ipad. it was apple. >> sure. >> rose: he built apple, and that is what warren buffet, berkshire hathaway is his work of art. that's the way people feel. it's acrattive thing in which theyive everything they have and try t bring ople they care about and put them on a mission. and the mission is let's do something that brings all of us real income. if you can find that for me, you're halfway there. and the tragedy is, too few of us have an opportunity to do that. and don't have the kind of exhilaration that winning and

losing brings you if i think if you talk to bill gates, they'regoing to give their money away. what they're doing is tremendous. i just did a profile on "60 minutes" with bill, the fact that he thinks he had eradicate polio is bigger than any software he sold a gazillions. >> people giving all their time and money and effort to do good things. at that point you're like money ishe modrnay report card, but once you've got that age let's go on. >> rose: there is this. what can they learn from you? >> i think every generation has its own rallies points, you

can't retrofit, and what people are doing now is retrofit. the base. young people have been marketed to since they were newborns. they have developed into the most sophisticate detector of all time. if something is created in a board room, if something is creating by sensors, they'll say that will be cool. we'll goa skateboarding and that will sell the thing. that will not work. the people who shoot it have to be young, the language has to-- that's sounds very simple because no one is giving a kid a million dollars and saying, "go make something for he. no one, who has ever made anything before. it goes against everyone stort

of status quo way of make things we have today. i think that's what has to happen because college kids, when they go to play football in the nfl, they always say the same thing, it's so fast. the game is so facht. rose: that's exactly what they say. >> what is happening now is so fast it's crazy. nobody knows what is happening with facebook. boom, it works, go. twitter, the best marketing tool in the world. and unless you understand face book. litters, nuls understand platform. everyone was investing-- platform, platform, platform. money into platform but nobody was saying what are we going to fill that pipe with. no one was creating 1,000 mowers, 2,000 hours of content.

it's a great time to be a content creator-- and i don't think big companies are within of thousands of employees can move that fast. mire, is a prospect, we know facebook, twitter, all kind of social media are having a political impact as well as-- >> i think we are offering a political voice, and if you look at twitter, for example, or facebook, they remember given a lot of credit for arab spring. and they were doing that were used by young people to overthrow rejeems. >> rose: and to come together to show power numbers. >> exactly. >> rose: but the oacial devices aloid them to come

together >> re: and communicate. >> rose: and comiet. arab ring i had done a do you want-- i would have bet you know, there's no way there is going to be arab spring. i would have bet you any amount of money. when i went back, i couldn't believe what was happening and they are all communicating because they couldn't obviously communicate through regular chnels, they were finding different ways of doing it. and you realize, revolution was-- was like spurned or-- not spurned. but the movement of technology, the movement of information. when i saw that fraepped we have to be here chron celg this. we have to press record and

watch should what it's happening. i tonight know what's happening. anybody who tells you they know what's happeni is a liar. you they have opinions, but everyone has opinions. so what we want to do -- >> and some opinions are more important than others. >> what we want to do is imperce ourselves in the situation, police record and chronicle what's happening. >> rose: then there's this, too. all of a sudden you have all of this attention, "time" magazine, "nenew yorker" a thousands other people know your story and they're saying wow. is there a risk that you who createdhis has grown this worried that we can't let that happen to us? >> fing guout there in a media company, and you're afraid of what people are going to say about you, you shouldn't do it.

>> rose: i'm note february talking about what they say about you. i don't care about that, either. what is it you need to worry about? >> we need to worry about every+[ing. one of the turning swoibts in biems, there is an era we were very popular for gawkir and sort obitches. environmentally there are a lot of problems, and i was saying where are the adults? someone should be saying something? and i realized i have one of the largest program for yout if you want avoid criticism, don'to anywhere. don't say anything. >> this is note about avoiding criticism. you want to do crimp.

yes. are we perfect, no? are we afraid of making mistakes, no. one of the big mistake we don't want to hate, i don't want to hurt any of our correspondents so we get safer and safer on that. we get crestlessed for bei nger seekers. weert opposition. we don't want to have any of my correspondents, or myself included-- i never someone said someplace i wouldn't go myself. we want to get it right. we tonight want to be contrarian for sake of beeping atrainer. we definitely want to be apolitical. anthrax the biggest mistake we can make is slowing ourselves down, not being fast.

not reinventing ourselves. >> rose: like the way are you so much you forget to puch forward. you reasons i have to keep giving it to the interns who keep it relevant. you have to be open to reinventg yourself every few years. which is hard to do. if sounds easy. and because you shoul -- >> if you don't grow you die. >> exactly. >> rose: there is also this, your father. this is an interesting guy. to read about the relationship between the two of you. you'd try to build something, and he que more about it than

you did. >> he's a fantastic guy. we have a very special relationship-- i'm going to tear up-- i left home at 13 because when he was eight they'll tell you life is fair. it doesn't. so he was also an old-- we'd have to build a war. build houses. build a car. do all these things, and we had to get trait as and all this stuff, so by the time i was 13, 14, i'm a man nw, i'm leaving. basically, he supported me in everything. i remember when i was 16 or 17 i said i was going to be a poet and he said okay." he didn't me to go to hell

always incredibly supportive but bruleally honest and i think that's where. he's incredibly smart. terrible with money. he's the only guy that every lost money on "" great at everything, math meitation, he love to build things. he becomeand ridiculous tap he would see something when i thoughts a piece of tbar annual a lot of people come to me and say how did you see that was going to happen in media? i think what he saw with hisical things i can see through content

he's alive today? >> yes, yes, he is. >> does he playing a role in your intaelz this when i grew up we went to the nationals a few times, nt to the worlds for a few times. >> rose: what does he say about "vice" vice? >> he's not a very complementary guy and he called me up eight years ago, maybe, and i was in miami for the winter music conference, and he is also an incredibly well read guy. >> rose: that's what i was stru by earli. >> he called me up and say how does it feel to be not only the best magazine in the world but best free magazine.

>> rose: that's what he said. >> now i'm verklempt. >> rose: that made it for you. thank you for coming. the magazine is called "vice." it's a remarkable story of shane smith and what he has done and the journey just begins. thank you. >> thank you, sir. >> back in a moment. you probably know bill gate as the founder of microsoft whose software fueled the personal computer evolution. and you might also know him as the richest man in the world who left microsoft to have the chance to give his money away. he is driven as much as anyone we have ever met to make the world a better place. gates told us why he thinks ventions are th keys to success and what he intends.

starting with his plans to knock out some of the world's deadliest diseases. you're going to spend the next 20 years of your life trying to rad cat disease. >> yes. get it done by 2018. >> rose: tuberculosis. >> the current a not enough for eradication. we'll need better tools that will take six, seven years. >> rose: malaria? >> malaria tools are starting to really shrink that map. >> rose: these are the people gates wants to headline. , who struggle on less than $2 a

day. gates anti-most urgent goal helped the millions of children unr five who die every year, one every 20 seconds from preventable diseases. no one alive i know of has said my goal is to eradicate a disease and then another disease and then another disease. this is somebody who dreams high. >> i'm excited about that. and it's doable. today gates spent most of his time at the bill and melinda gates foundation. there are over 1100 employees to help them decide which programs to fund. gates still visits sites around the world to see what's working and what's not.

>> great to be here. >> rose: the grant go towards school nutrition, improving agriculture, and mt important to gates, life-saving vaccines. >> well, whenever you see a mother bringing in a sick child into a facility it's easy to relate to what if that was my child. you realize how crazy it is that with the world being rich enough to afford all sorts of frivolous things that those basic things aren't still being provided. >> rose: gates has set up his foundation to run like microsoft. he insists on strict accounting, and he pull in the best people to find slews. we saw a good sm of that when it comes to vaccine positive to be

effective, they need to be kept cold. that's tough in hard to reach areas where. they created a super thermos using the same technology that protects spaced craft from extreme heat. using only a single patch of ice it can keep vaccine cold for 60 days. >> it doesn't require any batteries, any energy. its walls are designed so taeven at very, very hot days it will stay and you g in here, and there's a whole tray of the vaccine. you take them out. it records everything hive done.

just look at this thing. when we take it out smot field people go that's amazing. you can't do that. of 2.5 billion people around the world do not have adequate toilets. that means streams and rivers get clogs with debris and human waste. >> the towlt is like a vaccine with respect it rawl would change situation. >> rose: so let's launch a ploablep. didz. there are plernty of items.

some used wurng. some use a labor approach. it processes everything down in here and recycles water. in the next four, five idea we think we'll have a product as good as any of the other products. he show us why he draw inspiration italian in 1994. he bought the 500-year-old ♪ ♪ book notebook we have here is one where he's,ing about water and looking at how it flows when it hits barriers. how should you build a gentleman

of? making it the most valuable can strip the in the world. for gates, it is priceless. oon an inprice with one person on hir trying to right a wrong, that he kept pushing himself, founding in in itself to be a beautiful thing. >> mary: he scofs against comparison to the great galayo but a rook around his world is try to trough. >> rose: gates' collections of dvds contains thousand of hours of lectures. >> the more you learn, you more you have a framework that the know fits into. >> rose: when he's on the road, gates, who is a speed

reader, lugs around his reading back. >> mary: these are your notes all right how long will it