>> rose: welcome to the broadcast. tonight we continue our look at the new digital world with a conversation of one of the leading global executives in that world, mathias dopfner, the c.e.o. of axel springer. >> i don't share this whole cultural pessimism on the web. i don't see why journalism or the business models of journalism should be threatened in the digital area. i don't see any reason. on the contrary, journalism can be better. you have access to news resources of information, you have all the users, you have the intelligence of your users that you can integrate. >> rose: also in the media world and the digital world is stew stew. >> i learned that one has to be extremely careful-- and i don't mean about selling stock or anything like that-- just extremely careful in... if one gets into a difficulty and extremely careful and serious

about how you handle such a situation. i think i was a little too trusting. >> rose: mathias dopfner, martha stewart coming up. ♪ if you've had a coke in the last 20 years, ( screams ) you've had a hand in giving college scholarships... and support to thousands of our nation's... most promising students. ♪ ( coca-cola 5-note mnemonic ) captioning sponsored by rose communications

from our studios in new york city, this is charlie rose. >> rose: mathias dopfner was in new york yesterday and came to our studios to talk about how media companies are adjusting to the digital revolution. he's chairman and c.e.o. of axel springer, the german media giant that operates in 36 countries. the company runs over 170 newspapers and magazines, including the "bild." european media, like their american counterparts, have struggled to adapt their business models in the online era. axel springer's net profit dropped by nearly half last year because of the economic crisis and declining advertising revenue, but the company has rebounded and, in the judgment of many analysts, is one of the media leaders in the move to a digital world. here is the conversation recorded yesterday. welcome. >> pleased to be here. >> rose: you and i talked over the weekend and you had just

bought an ipad. so what do you think? and what role might it play in terms of changing, if any, the fortunes of media? print media. >> i spent a couple of days with a family in miami and on saturday morning i went to the apple store on lincoln road and played a little bit with the ipad and bought one with my son and i think this is really starting a new era. and i think every publisher in the world should sit down once a day and pray to thank steve jobs that he is saving the publishing industry with it. i think the ipad is really delivering what we were all waiting for. it's a device that enables you to visualize content in a very emotional way. it is an easy-to-use device. the price is a mass market price. it has-- and this is very

important-- a model that is very easy to use and it's a cool device. so it's simply cool to read journalism on this device. so i think that really will make a huge difference. we were proud to present with the american start of the ipad also at least one of our german newspapers, it's "die welt." and we offer that after a couple of weeks of promotion, we will offer it at a price that is only 10% below the price of the print product. and i think the advantages of the product on an ipad are obvious. you get the news earlier, you have the same visual attractiveness that you have of a newspaper. so i would not see any reason why people... why a traditional newspaper reader would not decide to do this. another advantage of the ipad is also it is the first lean back

medium. you know, if you were working on your computer or even on the laptop you lean forward like a typewriter. you lean forward. with the ipad, you sit in the airplane and you relax and you lean back, you sit on your couch, you lean back, that's the situation of a traditional magazine or newspaper reader. and so it really depends. if we produce the content that is attractive to the people. if we do the right things on the digital distribution channels, i don't see any reason why that should limit our possibilities to generate high profit. >> rose: my theory has always been that what they had to do is create, as steve jobs set out to do, a tablet that would make the experience as good or better than reading a magazine or... in terms of the color, in terms of the presentation. and it even had to enhance the experience to draw people to it. was that one of the things that you had to be convinced of?

>> you know, i don't share this whole cultural pessimism about journalism on the web. i don't see why journalism or the business models of journalism should be threatened in the digital area. i don't see any reason. on the contrary, journalism can be better. you have access to resources of information, you have all the users, you have to intelligence of your users that you can integrate. so we should not see user-generated content on the one side and on the other side professional journalism. that is nothing that is working against each other, it's really a complementary enrichment of our product. so i really think we should be a lot more optimistic about the possibilities for journalism on the web. >> rose: then tell me why you thought that newspapers' future looked so badly. warren buffett said in 2006 "newspaper readers are heading into the cemetery while non-newspaper readers are just getting out of college. it's hard to make money buying a business in permanent decline." >> well, i think whole media sector has been overrated for a couple of years.

at the moment it is underrated. >> rose: even though the stocks have been down. >> yes, but... >> rose: you know. that. >> charlie, let's simply look, for example, at our company. i mean, give me one minute for kind of show off presentation. i need to do this because it puts everything a little bit into proportion. for me, the year 2009 was by far the happiest year in my professional career. this was the year that i love most. why? because in a very, very tough environment, we had to deal with the financial crisis and we had to deal with the structural changes, the fundamental changes of the media industry. we achieved a high two-digit e.b.t.a. margin. we achieved in the traditional newspaper business an operational e.b.t.a. margin of more than 20%. at the same time, we were able to grow our digital revenues of the entire company to more than 20%. the three highest margins in the company are generated with online activities. so online is already contributing significantly to

the profitability of the company. online revenues and profits are overcompensating the decline in the print business. we have gained market share in that environment almost 5%. and we have even increased the number of our employees because we did so many new digital things which leads to happy shareholders. by the way, we outperformed all the relevant media indices. happy shared holders, happy employees. why should we be depressd? >> rose: do you see your experience in 2009 as different from the american experience or other experiences around the world? >> i don't know. you know, one other media company has an even higher revenue percentage deriving from online, that's a scandinavian company, much smaller. apart from that worldwide there is no peer in that dimension. why is that so? perhaps there's one explanation or two explanations i would like to give. one is that we have no different silos for online and print people.

we have a fully integrated approach which leads to the fact that all our 10,000 employees are totally motivated to transform their content, their brand, their business model into the digital world. either they do this or they have no future. >> rose: could content be free? would you say it cannot be? there can be no free model? >> well, i totally believe that step by step we will transform into mixed models where large parts of the journalistic content will be paid for. >> rose: right. >> and the mobile devices help because on the mobile devices you have already the habit that people are paying for content. they pay for a telephone call, they pay for an s.m.s., they pay for an app. and step by step we will have parts of the content, particularly if it's very value added service oriented content. if it's special interest content or if it's really exclusive content then people are willing to pay. but the decisive question is-- and this leads to the second focus of our activities-- do we parolely provide the right content? >> rose: how is the quality of

your content different than someone else? >> well, this is hard to say because we are not dealing with mathematics here. it's... in any case, the culture of our company is very journalistic. very content oriented. >> rose: and so is the "new york times." >> right. and i will not give any american newspaper, not this world prestigious brand like "new york times" any lesson what is they do wrong. i can just tell you what we are doing and we are trying to define what the reader really wants and we try to be very open. for example, to integrate user-generated content. not only to our digital products also to our print products. let's take our biggest newspaper it's "bild." it's reaching everyday 12 million readers. it's quite unique because if you look to america the biggest newspaper, "u.s.a. today" and "wall street journal" reach about approximately 3.5 million readers per day. the biggest t.v. show "america's got talent" i think is reaching 11.7, something like that.

in germany, there's no t.v. that reaches everyday as much readers as "bild." it's a unique brand, a very strong marketplace. so we said let's use this figure in order to make our 12 million readers potential reporters. so we asked them to send us stories, particularly to send us video content, to send us photos. until today, more than 600,000 photos have been sent. we have printed 18,000. >> rose: am i going to want to read your publications here? or am i going to read in the print? >> you know what? i don't mind. i see ourselves as content producers, branded content producers, marketeers of branded content and if more and more readers will prefer to read it on tablet devices, i like it. because we save printing costs. we save distribution costs, we save paper costs. so in a way it is boosting our business. >> rose: but isn't it inevitable more and more readers are going to want to read it electronically? >> yes! and i love it. >> rose: rupert murdoch. >> doing great. >> rose: he deserves enormous

credit for standing up and saying we cannot and will not provide free content at the "wall street journal." >> he was the first in america, we were the first in europe. we are totefully the same camp on that front. we have slightly different ways to get to that point, but in principle with regard to strategy, we absolutely are on the same page. >> rose: the idea of free content essentially will no longer be the dominant idea in terms of communicating magazines and newspapers. >> let me slightly rephrase it. i would say the idea that free democratic information... >> rose: online. >> is only achieveable in the digital world if everything is for free is for me web communism is a totally absurd idea because that would mean a supermarket is only a democratic supermarket if you can get your milk and your bread for free. so i think parts of the content will be free because they are commodities, parts of the exclusive content will be paid for and advertising financed and parts of it will be subscription models only. and that will be a development

of let's say ten years. >> rose: tell me once again why you think this is so successful. >> it is so important because it is changing first of all the whole mind-set of people who are using it. it's not a work like atmosphere. it's atmosphere, as i said, where people lean back, where they... where they will be seduced by something that's very attractive visually. whether they will learn completely new things. i think that is one thing. the other thing is, again, the pay model that is already there. >> rose: right. >> the next aspect is it is extremely easy to use. i mean, you really... this is something that my grandmother can use and it's... >> rose: but some people on this program on friday night, walt mossberg of the "wall street journal" and david carr of the "new york times" both made the point that this is for consumption not creation. >> yeah, but that's the problem of the creator, not the problem of the consumer. and we should care about the consumer. this is attractive for consumer.

this is attractive for a reader who does not want to work in the internet to find something out very specifically. this is something for somebody who wants to consume news, who wants to consume entertainment, who wants to be seduced, who wants to be informed, who wants to be entertained. that's the new thing about it. and the consumer's perspective is the perspective which matters for us. of course we are disappointed that flash is not working on the ipad. and, by the way, there are a lot of things that have to develop if i'm saying we have to pray and thank steve jobs that he established this device and that he most likely saved the whole journalistic industry, at the same time we should sit down and start renegotiation with the apple people about, for example, the revenue share. i mean, 30% for apple, it's too much. but the competition among the devices will help. there is microsoft device, there will be a google device, there will be the kindle. and that will help. >> rose: this is the first of many tablets that are going to be on the air. >> this is just a new generation of devices and i think this is

going to start a era. if we, the publishers, content producers, take it as an opportunity, there's tremendous potential. if we see it as a competitor for papers and magazines then we are dead. >> rose: and for those people who are being forced to be... who are being laid off in the journalism world, you're saying this also can save their jobs? >> well, of course. i mean, if you look to the united states, i think every third journalist has been fired. >> rose: exactly. >> fortunately, in europe it is the a little less radical but it will come. i mean, that's a general trend, a global trend and we cannot do anything against it apart from really focusing on how to use new distribution channels, the mobile devices-- and this is a mobile device for me-- how to use them in order to establish sustainable business models. if that is the case it can lead to a situation as in our company that we have increased the number of employees last year.

>> rose: why is this a better device than your i own? >> well, because the screen is bigger. i have a totally different attractiveness of the layout of the design. by the way, the design is an underestimated success factor of a until general. this design is simply a cool device. i like it. >> rose: and you carry it wherever you go. >> you can carry it where wherever you go. you have it with a couple of pieces of paper as i had here and it is small and at the same time has the biggest screen possible to provide you with elegant layouts. and if you just flip through the pages, it is a wonderful experience. >> rose: what does this mean for google? >> well, it's competition. it's a challenge, it's an opportunity. google plays an important role on this device, too, so i don't see any... i mean, they are working on parallel ideas. let's see how far they get. that's competition. it's great. >> rose: you think they did the right thing in china?

>> yes. absolutely. >> rose: had no choice. >> they had no choice and they did the right thing. >> rose: let me talk about the middle east, of which you have a long-standing interest. where do we stand now in terms of the u.s. relationship with israel? >> you know, i mean, on the one hand what the israeli government has done with the settlements in the recent past was a big mistake, diplomatic mistake and stupidity. i don't see the danger that this is really changing the relationship between the united states and israel profoundly. i don't know if it's right to say there's a precondition for further peace talks about further settlements if you look back and this is quite a new position. anyhow i think israel can still count on the united states. for me honestly speaking the more decisive question is which role plays europe. and is it possible for the enemies of israel, for the

enemies of democracies of the particularly islamic fundmentalists, is it possible for them to play with europe against america and as long as this is possible that is weakening our common values. the common values of democracy and freedom and stability and security. so i hope europe is taking a very clear position despite these events and i'm happy that germany is today despite its history and partly perhaps because of its history but not only because of its history probably in europe the strongest ally of israel. >> rose: iran. what do you think of 2 implication, the possibilities of sanctions that will be effective? >> i hope that sanctions will work. we have to try everything with sanctions to put pressure on the system and to show where the

western world stands. so i'm absolutely for sanctions. i don't know whether it's enough. and i think if you really want to avoid military action, then you should never exclude the military option. that is also something where europe and america have sometimes mixed, divided opinions. so i really think that the iranian threat is absolutely serious and i don't see any reason why a dictator like ahmadinejad would not do what he is announcing to do. >> rose: if it's unacceptable and sanctions don't work, what's the option? >> never exclude an option and also never underestimate the very emotional and concrete threat that the people of israel feel. and if you would be in the position of somebody who lives in israel, of somebody who escaped the holocaust and who

remembers what it means if a political system wants to extinct jewish people or the state of israel, would you really wait until the apocalypse is happening? probably not. and so i think we should also be prepared for surprises. and in such a scenario it is absolutely vital that europe and america are acting together. >> rose: okay. that brings know the question. what's the relationship between the obama administration and europe today as you see it? >> i think obama is extremely popular in europe and particularly in germany. we had polls and i think almost 85% of the germans would have voted for obama. so he's very popular. he's a charismatic speaker. he has a style to address its people that is very unfamiliar

in germany but people like it. and, of course, he's now in a way showing the nice face of the united states which is technically speaking a huge advantage because it makes it a lot harder for europe and for germans... >> rose: how would you define "nice face"? a face that's willing to listen to europe? that takes europe into consideration? believes in multipolarity. >> exactly. that takes its partner serious, that has the capability to listen, that is not in this role of a warlord. i mean, we are talking about cliches here, but they are important and to a certain degree, too, we are talking about very emotional perceptions but they're even more important. and in this context, again, obama is a very popular, a very liked face of america and that provides a tremendous opportunity if you want to organize joint activities between europe and america. if he asks for more troops in europe and afghanistan it's a

lot harder to say know no than if his predecessor would have asked. >> rose: is europe and the larger world looking to the united states for leadership? >> absolutely. i think the united states are the leading force if it comes to the defense of freedom and democracy in the world. and it is important that we see that not with a kind of jealous sentiment we really is to be grateful for that. we have to invite and motivate the united states to play that role and to be the leading role... >> rose: and do you think that the united states needs to rethink its own brand of capitalism? >> and the one that you could go back to normal too fast. you could say well, this was an accident. >> rose: back to business as usual? >> back to business as usual. and to a certain degree one can

see this here and there. that's not the right lesson. on the other hand you could go into the other direction, you could go too far by... even strengthening the role of the state of the government and by that step by step you could establish kind of central economies that have nothing to do with free economies and that's not going to work either. so this is a fine balance of better regulation, not necessarily mortar regulation. >> rose: why is the european economy lagging behind everybody else? >> i think is a... >> rose: asia, the united states latin america in some cases. >> it's an almost philosophical question and has a lot to do with the mentality in europe. europe is for hundreds of years a very successful leading force in the world. and it's a clear beneficiary of

globalization. so for... and the question is, is it going to be the beneficiary of globalization in the future? i doubt it. and is a... >> rose: europe will not be a beneficiary of globalization in the future. >> that's not in question because if the mentality of a very successful entity leads to complacency, leads to lack of competitiveness then i think this can be very dangerous. and i think that has to do with the fact that you've just described that europe is not doing so successfully. germany is still a driving engine and a big beneficiary of the euro and the globalization so far. but are we ambitious enough? are we change-oriented enough in order to maintain that role of germany and europe particularly in competition with countries

like india, like non-democratic countries like china, the non-democratic version of capitalism is a very interesting version because you don't have to talk to much, you don't have to discuss, you just do, you're very efficient, very fast. if norman foster is telling about the... telling stories about the project of the beijing airport that has been done in a couple of years while in london people are still debating about the first architectural competition of a new airport, that has also to do with the fact that in china nobody has asked whether he wants to remove his house and how it should be done, it's simply dictated. so the competition with these forces is a tough one. >> don: who dominates in the future? what's the world going to look like in 2050? >> oh, that's an easy one. i don't know. >> rose: (laughs)

>> i mean, i'm... i'm an optimist and i think... for me the crucial question is where will the free western world stand in 20 or 50 years? we will be still the most powerful model and will democracy and freedom be more widespread than today? take into account more than a third of the world's population is living under conditions that have nothing to do with freedom under totalitarian systems. >> rose: my imsuppression there's more democracy today than there was 20 years ago. >> there is the freedom house report and since decades they are analyzing the state of freedom in the world in 94 countries and for four years in a row now freedom is going down. >> rose: now for four years. >> we are much better than 20 years ago but nevertheless we

are not going in the right direction and i think really that has to do with the whole threat of fundamentalism, terrorism, islamic fundamentalism. the question is how is the west dealing with it? are we dealing with a question of pride and self-confidence? are we really defending our values with all the necessary instruments that it takes? or are we in a kind of fear almost decadent state of mind that we say, well, we are better anyway and we don't have to use strong methods to fight that. and then i'm really worried that this kind of cultural revolution-- which it is in the end-- can lead to terrible consequences in the world. >> rose: thank you for coming. it was a pleasure to see you. >> pleasure to be here. >> rose: martha stewart is here. she is the founder of martha stewart living omnimedia.

in the 1980s and '90s she turned home making, cooking, and entertaining into a multimillion dollar business. today the company, like far, is everywhere. there are four magazines "living" "weddings" body and soul" and "everyday food." there's nearly 70 books from the iconic "entertaining" to her latest "fresh flavor fast." there's a martha stewart show moving to the mall mark channel. there is radio, web sites, martha on twitter. since the successful i.p.o. in 1990, her company has been through a lot, major losses after the trial and conviction of his namesake, a recession that slashed ad revenue and the recent end of its nine-year partnership with kmart. but it reported profits in the fourth quarter of 2009 and their new partnerships in the works and martha stewart has never met a challenge she didn't like and is looking forward to the future. i'm pleased to have her back at this table. welcome. >> thank you. >> rose: how are you? >> i'm good. i'm good. >> rose: this is the very first, look at this. the very first martha stewart.

how many years ago was that? >> 1982 was my first book. and actually it's still selling, charlie. and there aren't almost 70 books there are 70 books. (laughs) >> rose: not 69, not 6. >> that's the 70th. >> rose: and this is "fresh flavor fast." 250 easy delicious recipes. >> rose: which seems to be what people need and want right now. they need easy recipes, few ingredients, they want to cook at home, they want to feed their family good food and the real impetus now is to give the customer, the reader, the user what they need. because they want good. they want to be healthy and that's what we're trying to do in our company is just feed our readers and viewers and internet users the kind of information that they need. >> rose: i've got lots of questions. first of all, you look great. >> thank you. >> rose: you really do! are you on some routine or some exercise track?

>> i'm on the fast track. >> rose: (laughs) are you really? >> (laughs) i am exercising, i am doing yoga i am eating very well. but i usually do. >> rose: is that because you know how to eat or because you have some fancy nutritionist. >> i do not have a nutritionist. i am the nutritionist for myself i eat from my garden year round and i drink a very delicious juice every morning which is made out of spinach and all the good things for you, cucumbers and ginger and orange peel. >> rose: oh, my goodness. >> i put in the one of those wonderful juicers and drink that every morning without fail. >> rose: do you have a lot of doctors? do you know lots of doctors? >> no, i have one doctor. >> rose: really. >> well, i have two, a gynecologist and a regular doctor. >> rose: and you're in good health? >> i'm in excellent health. >> rose: are you going to take over as c.e.o. again? >> i don't know. i haven't thought about that actually. i work with the board, i work with my chairman, i work with robin marino my c.e.o. of merchandising. and we are very close, we work

well together. and i think that... i think that i'll review that when it comes. >> rose: well, you've been the creative force all along. that's what makes a difference. you're the creative person. >> i like the title of "founder". >> rose: well, appropriate for you. >> and i like the title of "creative editorial director" and all those kinds of titles that i can have. so it's not so bad. >> rose: so mel me what martha wants. >> well, what i want, really sfor my lovely company with the lovely people that work there to be as successful as it possibly can while creating really, really fine products. products that may be magazines, they may be electronic magazines. digital books, real books, wonderful products for the home. that's what we've been doing all along: helping people live better lives. and it might sound pollyanna

pollyannaish? >> rose: that's good. >> but i really feel that way. i want... we have to live every single day and you might as well try to live very well and an interested life and an interesting life. >> rose: there's nothing professionally that you haven't achieved. there's no great goal that you had that... >> my company was on a real role and it was growing very rapidly and well. it was a company with no debt a company that had very good increasing earnings every single quarter, we never disappointed, we always succeeded. and then a legal problem, a serious legal problem interfered and i felt, oh, my gosh, i have to keep this together. we have kept it together. but then a recession came and as you pointed out in your introduction there was an ad decline as all media companies

experience. but we are... we have new partners now, we just signed a very excellent partnership with the home depot. >> rose: what are you going to do for them? >> lots of things. >> rose: seems like a natural fit to me. >> it is. we had a very long-term contract with kmart. >> rose: right. >> which came to an end this january. >> rose: that was a very profitable thing. >> that was. and we sold a lot of product in the kmart stores. >> rose: what was the biggest thing you sold? >> well, it was house wears and soft goods: sheets towels, bedding, all those kinds of things. but outdoor furniture, christmas. we did a lot of product. >> rose: what's the advantage to me if i'm bayh somethat that has martha stewart's name on it? >> well, pretty much you can expect good quality, excellent pricing. and we're doing this also now at macy's. all our bedding and all our beautiful housewares are at macy's. that's where you go now. and i want everybody to know that because it's hard to change

an attitude from one store like the kmarts which now no longer have our product to macy's. >> rose: so everybody who was going to see martha at kmart now these go see martha at macy's. >> so all of you watching, we're now at macy's. but at home depot we have a great opportunity because we're making outdoor furniture, we're making beautiful v.o.c. paints. do you know what that means? those are paints that are environmentally friendly. >> rose: oh. >> and we have 280 great colors. we are doing kitchens which are beautiful and people, don't redo your kitchen yet until you see my kitchens. >> rose: why didn't you get in real estate development? >> we did. well, not development but we have been working with k.b. home to develop lines of houses. so the martha stewart houses have been selling even through the recession. not in great quantities because houses aren't selling so well right now but we designed first larger homes that were retailing for very little. anywhere between $259,000 and

$550,000. these are four-bedroom houses. i would go into a house and think, oh, my gosh, this is the best house! and it's only $300,000. >> rose: that's a lot of money. >> it's not. >> rose: in new bedford a barn cost more than that or garage. >> rose: (laughs) a barn costs $300,000 in bedford? that's where you live, dear. >> i know! i know! i'm telling you, it's expensive. but now we're doing even smaller houses for k.b. homes which are wonderful houses. people have realized finally that they don't need mcmansions, they don't need four and five bedrooms or if they want four and five bedrooms they don't have to be gigantic. and these smaller houses are very beautiful and very good value. and they're starting at like $150,000. >> rose: are you getting a percentage so they can use their name? >> we design. as we always started we do the design, a lot of the marketing, we create the advertising.

we if you wereish. we're doing that kind of stuff. little by little we are coming back to our former glory. >> rose: in other words, to your former what? >> glory! >> rose: (laughs) oh, glory. >> and the products are just as good as ever. we never, despite any legal problems, we didn't lose our customers. >> rose: really? they stayed with you. why do you think they did that? >> because they really... >> rose: like the product. >> like the product. they trust the product. >> rose: at one time you were a billionaire. >> i know, it felt so nice. (laughs) i remember driving up madison avenue thinking "i can buy anything." but i'm not a spendthrift! >> rose: this is what i love about you. i loved it. i loved everybody knowing that i am martha stewart and i built this business and i am a billionaire. >> it was very nice but i was seriously the first self--made billionaire. it was a very good feeling. >> rose: do you think you'll get back to that point? >> oh, definitely.

definitely. >> rose: what's the game plan to get there? >> growing the business the way we're growing it now. we're on track with very... our partnerships are excellent. our products are terrific. for me the future into zer bright because there are still millions of people and, by the way, the world is flat. so we are expanding internationally now, finally. i met with our knees wan partners who are starting to publish our magazine. >> when you create a partner ship with you in indonesia, what is the deal? >> well, we start, actually, with television. then we go into magazines. they're publishing the martha stewart "living" in august. we have issues in bangkok, we have issues in turkey. we have issues in xwra brazil and mexico. so we're expanding internationally which is very good because everyone wants the same kind of good information

and good guidance. >> rose: why do you do the t.v. shows? you might say "why shouldn't i" which is a perfectly good answer. >> the same as you. >> rose: but i don't have a thousand products. >> well, if you did... >> rose: hmm! maybe i should. >> i tried to tell you that years ago. >> rose: yes, you did. >> i tried to lead you that way. the charlie rose this and charlie rose that. >> rose: you absolutely told me that. clothes... >> but it's not about... again, the very nicest way to keep your brand very vibrant, very obvious very in the customer's view and it is a wonderful marketing tool. now, we've just signed with mall mark... >> rose: oh, i know about that. this is a big deal. you're going to have a whole channel. >> yes. and i'm very excited about it because the traditional good value, again, of the hallmark family. i've been watching hallmark specials and hallmark programming my whole life. >> rose: family fare, we might say. >> yes. and so our kinds of information, our programming, our everyday

food program, the martha stewart show, the pet-keeping show we're producing, we're doing a whole new version of that. all fits very nicely on the hallmark channels. and we're excited about it. it starts in september. >> rose: there is satisfaction in the doing of the thing. yes you want the recognition but you don't want to buy ten more houses. >> no! >> rose: you don't want to buy a boat. >> not really. >> rose: you don't want to buy the biggest apartment in new york. >> no. >> rose: because you could have done all that. >> i can still do that. >> rose: i know you can. but you don't seem to want to. you like your farm. >> i usually go home to the farm and i like that farm a lot. i like my animals. >> rose: what an mas do you have there? >> horses and donkeys. >> rose: donkeys? >> geese and my chickens and dogs and cats and birds. >> rose: i would love to raise chickens. that seems like a fun thing to do:. >> we're doing a whole show on martha stewart living on how to raise backyard chickens. >> rose: just give me a quick...

>> it's a great big thing now. >> rose: i saw a thing the other day. tell me about that. >> did you read about backyard chicken raising in the "new yorker" magazine. >> rose: indeed. that's where. so tell me about it. why we want to do this is my question. >> first of all, the eggs are delicious. >> rose: oh, great, yeah. >> the chickens are a very good way to get rid of vegetable compost from your kitchen. vegetable scraps. they are... they actually in return give you great rich manure for your garden. it's like a little ecosystem sitting in your back yard. they're pleasant, they teach children a lot about nature and about reproduction. it's one of the nicest ways to have things going on in your backyard. >> rose: i grew up in the south and you go to a lot of places and there would be chickens all over the place. >> you should have chickens. i had chickens on a weekend place when i first started. >> rose: running around all over the place? >> free range but at night you have to put them in because

there's varplts. there's raccoons and possums. they like chickens. you have to cope with nature. but that's another way. you are living with nature and feeding your family delicious things. i get about a hundred eggs a day. >> rose: you go out and collect them yourself? >> well, i do but i also have somebody who does it because they have to be collected at 3:00 in the afternoon otherwise the chickens might sit on them and break them in the nests. so i take a bowl this big every, like, two or three days to my office and we send out a company wide e-mail and it just says "eggs are here, four to a person help yourself." and we put them at the reception desk and they are gone within seconds. >> rose: you have a great daughter in who's in media and involved with you, alexa. she does a television show that does what. >> rose: your produce everwent to college with her. >> yvette went to college? >> rose: not yvette. the producer of this show. stephanie stephanie went to college with her? she has a ph.d. from harvard? >> well, they took a social...

some sort of sociology class or psychology class together. she was just telling me about it. >> rose: here's my question, though. >> allem sis could have gone to harvard if she so chose. >> rose: (laughs) i'm sure she could have. where did you go to college? >> i went to barnard. same place. >> rose: so you're the pride of barnard. >> one of them. >> rose: all right. the great sister university of columbia. yes. but did you wish you had had like a brood of children? >> yes! >> rose: i thought so. >> of course. >> rose: because you would just... think about the stuff they could do. they could be raising chickens and learning about the farm and, you know, they could... >> well, alexis learn learned all of that. >> rose: did she? >> oh, sure. >> rose: we'll show alexis in a moment because she has a t.v. show on cereus radio. >> she has her own radio program. >> rose: is she the inheritor of all this? >> she is the heiress. when i was in trouble, you know what she called herself? >> rose: no. >> the heiress to misfortune. >> rose: (laughs)

>> she has a good sense of humor. >> rose: the heiress to misfortune. >> no, she's the heiress to a growing fortune. >> rose: succession is a thing you have to think about. >> oh, i do. i do. >> rose: so are you training... is she in training to take over this empire? >> if she so chooses. >> rose: have you always been close or were you not so close and got closer? >> we're like any other mother and daughter. sometimes great, sometimes not so great. >> rose: just the inevitable tension, especially if you're famous as you are. >> she's famous, too, now. >> rose: all right, we've been talking about it. here she is, martha stewart's little daughter. >> lots can have kids are just about to go off to camp. >> i was never given anything. the bare minimum. and >> and matt mcgrath, the 12-year-old son of susan mcgrath is going off to tennis camp. >> i went to tennis camp! i went to tennis camp! >> this terrific little bag that we made o of an old ticking fabric we're going to sneak in. >> antique ticking fabric.

you're going to give a boy antique ticking fab sflik >> that bag is very girly. >> it is, incredibly girly. >> you can't send that with a little boy. he's going to get teased. "nice pocketbook!" >> right! >> nice bag, lady! >> it's mean. >> we're going to make him a little diary. >> oh, no! no! she's sending this little boy with a diary? i hope the boys are out there playing with progresses! you don't want to write a diary when you're at camp. >> create a tie. >> what is she making for him? >> she's ribbonizing things for him. >> is this a joke? they're not going to think he's cool. let me whip out my ribbon-enclosed notebook. >> it's fun to make things that are special. show the kids that you are actually thinking about them. >> dear mom, haven't made many friends, they're too busy stuffing my ned the toilet, thanks if the purse! >> it was fun to see what they wrote. >> dear diary, it's the first day at camp and i got my ass

kicked today. i mean, come on, martha! >> rose: (laughs) she was obviously blond. >> yes. that's alexis. >> rose: but succession is an issue you have to think about. >> we do. >> rose: your investors want you to think about that. >> yes. >> rose: in fact, at the i.p.o. one of the things they had to put in that prospectus was this is martha stewart and if something happens to martha stewart... >> but tommy hilfiger that has same problem, ralph lauren has the same problem. they all have the same problem. >> rose: have you missed anything? you seem to me to be somebody who has grabbed every opportunity. >> well, i try. i try to stay on top of electronics, on top of internet developments. i was an original twitterer. i tweet really about five minutes a day. >> rose: telling them what martha's doing? >> what i'm doing or asking questions or doing surveys or whatever. >> rose: describe to me what being martha stuart means? >> it means being... getting up

every morning. >> rose: at what time? >> early. >> rose: no, no, but you're legendary for sleeping almost... >> i know but it depends on the day. today was early because i have a show this morning. >> rose: you five shows at one siting? >> no, no, no. two two or two to one. so i got up early and this morning was at like 5:30. i walk the dogs. the puppy has to go out early. >> rose: how many dogs? >> three dogs. i feed the five cats. i have to check them all out. and then i shower and get ready for the day. i check my e-mails. i get in the car and i zoom to new york and if i leave early enough, if i leave before 7:00 a.m. i get to new york by 8:00, which is the time i have to be at the studio. >> rose: let's talk about life's lessons, you mentioned the legal problems several times. tell me what you learned from that experience. >> i learned that one has to be

extremely careful. and i don't mean about selling stock or anything like that. just extremely careful in... if one gets into difficulty and extremely careful and serious about how you hane such a situation. i think i was a little too trusting. >> rose: trusting of... >> of help. >> rose: people who worked for you? >> people who were helping me. and i probably wasn't thinking as clearly as i probably should have about what was really going on here. i wish i had been more careful. i sometimes... i'm sometimes too trusting and that's... that was a problem. so i'm a little bit more cautious now, i question things a little bit more. i'm still more creative than i am decisive sometimes. but it's... i've learned.

>> you have to be careful with phone calls and e-mails. >> oh, it's... but that's not even the point. the point is just you really have to be... watch out for yourself. really. >> rose: i'm not sure i understand the point. >> it's hard to get into that discussion here. so i could go on for a long time about that. >> why don't you write a book. >> i will. >> rose: a memoir about the life as well as everything. what are you waiting for? >> i have a lot to do, charlie. i don't want to occupy my mind with that yet. >> rose: what martha stewart is about, it's far stewart's talent instinct for quality, martha stewart's quest to find out everything that's new. it's martha stewart's wanting to know who makes the best everything, right? >> right. what we also want to know is martha stewart. who if we are buying a person, which we are, and a brand, you are the company, with respect to all the good people who work for you. you are the company.

so why don't you write that memoir now, not later? >> of course i can. but it's not about that. it's about, as i say, my thinking, my everyday thinking is still focused on building the company for my shareholders, for more employees who are shareholders and the people who love all my products. so i really, really, really want that company to be in excellent shape before i sit down in my rocking chair... >> rose: i'm just saying don't wait until you sit in a rocking chair. >> well thank you for that. >> rose: freed a vice. >> where's your memoir, charlie? >> rose: well said, my dear. well said. i'm thinking about getting a dog what kind of dog should i get? >> well, before we started this program tonight charlie did show me a page of adopting a dog. >> from a rescue place,. >> that's good. i like that. do you go to breeders or rescue people. >> rose: it depends. my old chow, the king of the

home, he passed away last year and i have been looking for months and months for his successor and finally a great grant son of paw paw was born and his name ising again kiss kahn and he now lives in my house and he's wonderful. genghis khan. you can never replace the dog that's gone, by the way. you can't really find that same dog. >> rose: but this is a chow? >> it's a chow. >> rose: you also have other dogs. >> but you like active dogs. you want dogs who's going to walk with you. >> rose: run with me. hang out with me. >> play golf... >>. >> rose: not play golf. >> is he going to interfere with the golf game? >> rose: no. >> you can't take dogs on the golf course! >> rose: yes, you can. >> i've never seen a dog on a golf course. >> rose: you haven't seen enough golf courses.

you don't play golf. >> no, i don't. >> rose: so what's your advice? >> i think it's very admirable to adopt a dog. >> rose: i knew i'd come to the right place. i've got other things i need help on, too. some other things. >> anything for you, charlie. >> rose: some other things i need to add to my life. >> anything you want, charlie. >> rose: so five years from now the primary thing you want to be different is you will become a billionaire, you will enhance the business in every way, you will have new partners around the world, you will have new magazines and at least big entertainment books. >> and we will be emergent in the new diggsal world. i want to be... i want to be really, really active in the digital world because it is here to stay. and i don't mean being a tweeter. i don't mean that. >> rose: you mean playing on every platform. >> i mean playing on every platform. and we are developing now a wonderful, wonderful e-magazine in full blazing color. i hope that we have the right device to play it on and i'm

waiting to see the ipad in person, i haven't seen it yet. >> rose: do you have a kind? >> that's how i read now. >> rose: what are you reading now? >> well, i just... i'm reading googled, because... >> rose: right, good story. >> and i'm reading... i don't have time to read novels. >> rose: you don't read fiction, do you. >> well, i read "the help" to my daughter's dismay. but it was kind of interesting. >> rose: the thing i've forgotten all about was men. >> oh, men. >> rose: men, yes. >> yes. what about men. >> rose: how do you think we're different than women? >> um, well, i don't know. i think... >> rose: are we more difficult? more complex? more what? >> selfish. >> rose: self-ish? do you really? >> uh-huh. i think men are more selfish in a perfectly normal way. >> rose: and do you think women are every bit as good or better leaders in terms of... as more

and more women in chile and other places... >> i think women still haven't had the opportunity to be... to prove their leadership abilities as they should. and it's our fault, probably. because we have... we can if we really persevere and we have to spend more time in doing that. >> rose: but you're a good example of that. you lead an organization. multinational organization. >> but i don't think i'm selfish >> rose: you don't? >> i don't think so. >> rose: how about determined, driven? >> yeah, but there's a lot of good, determined women and everyday i meet more women who are doing interesting things. but, you know, i divide my time between men and women. i don't care if you're a man or a woman if you're interesting. >> rose: do you think you'll get married again? >> i don't know, charlie. >> rose: but there's an agony about that or something. >> why get married? >> i'm asking. >> why? why. as long as you have friends and

as long as you have dinner companions and fun people and go on trips and do that stuff, i don't know if it's necessary actually to be married. unless i could find somebody, like 40 years old. >> rose: (laughs) but here's... i mean, you like... you'd like to have a companion. >> oh, i do. i like that. i like companionship. >> rose: you do not have one man in your life right now. >> no, i do not. >> rose: you'd like that. >> one special man. >> rose: somebody that's up to the... >> but i haven't had that for a while. so we have to work on that. but i have a company. >> rose: is it difficult to be with martha stewart? >> no. martha stewart is great. she cooks, she entertains. she's interesting. >> rose: she's fun. she's tolerant of you. >> totally. >> rose: you're a real catch!

martha stewart and i have known each other for a long time and been great friends and i thank you for coming here to catch up. >> thank you. captioning sponsored by rose communications captioned by media access group at wgbh access.wgbh.org ♪

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