♪ emily chang: by now, you know his story.he kid who started the social network in his harvard dorm room, grew it to 1.4 billion users, and became one of the wealthiest men in the world. but mark zuckerberg may not be done changing the world just yet. since taking facebook public, his bets have only gotten bigger. spending billions expanding his empire into photos, messaging, even virtual reality. internet.org may be his most audicious bet yet. featuring an epic battle with google, drones, lasers, and stratospheric hot air balloons, to bring the internet to the farthest corners of the earth and win billions of new users in the process. our guest today on this special edition of "studio 1.0" is facebook founder and ceo mark zuckerberg. so first of all, you are a year and a half into this now. tell me your vision. and tell me what inspired you to do this. mark zuckerberg: when people are connected, we can just do some great things. we have the opportunity to get access to jobs, education, health, new kinds of communication. we b

♪ ♪ emily chang: so drones and lasers -- you know you have a whole big lab now working on this.ll facebook drones and lasers be ready for launch? mark zuckerberg: well, we are going to be testing some in the near future. i would be probably mistaken if i gave you an exact date on this. but it is -- that is one of the big technical barriers. right? there are a lot of people who do not live within range of a network, and drones and satellites and laser communication is one way to do it. microwave communication is another. these are going to be some of the solutions for providing more cost-effective connectivity to people where there are no existing cell phone towers or infrastructure like that. emily: facebook is going to be ramping up spending -- how much of that is going to go to internet.org and these efforts in, you know, the nasa jet propulsion lab and where you are working on all of this other cool technology? mark: we are definitely investing a bunch in this. emily: we were talking about china -- your mandarin has gotten pretty good. what is the likelihood internet.org coul

cory: that was emily chang. the best of "bloomberg west" -- will be back. ♪ cory: this is "the best of bloomberg west." can radio thrive or was dreaming services mean the end? one of the men that could have a huge stay in this is howard stern. the rock the radio world and 2004 when he bolted for serious, -- sirius satellite, but his contract is up at the end of the year. stern and the future of radio are featured in this week's "bloomberg businessweek." we spoke about this with the story's author. >> there is a fair amount -- that would be impacted if his contract is not renewed. i think sirius itself is in a much better position from a content perspective that it was in 2010 when his contract cannot -- came up the last time. on the flipside, howard stern has more options. it remains to be seen, but i know there is the price that the company could very well walk away from. cory: this business took off from a revenue standpoint and more subscribers. it took off when howard stern joined this business. he made this

cory: that was it would been emily chang. cory: this is "the best of bloomberg west."adio thrive or was dreaming -- will streaming services mean the end? one of the men that could have a huge stay in this is howard stern. one of the best known and best paid radio host on the planet. he rocked the radio world and 2004 when he bolted for serious, but his contract is up at the end of the year. stern and the future of radio are featured in this week's bloomberg businessweek. we spoke about this with the story's author. felix gillette. felix: there are fair amount of subscribers out there, probably about one million that would be impacted if his contract is not renewed. having said that, he is in a much better position from a contaent perspective than in 2010 when his contract was up the last time. on the flipside, howard stern has more options. there is a price that the company could very well walk away from. corey: in terms of subscribers this business took off both in numbers of subscribers and revenue. it took off when howard stern joined the business. he made this busi

cory: that was my partner emily chang and go pro ceo nick woods.e will be right back. ♪ cory: when the apple. start shipping april 24, -- when the apple watch start shipping april 24, the ruby focus on the business. my guests were a crucial part of the announcement. what do you see as the functionality in the watch that it was crucial beyond mortal -- beyond mobile? >> one is how quickly you can focus on various functionalities that are available on your watch at apps. i don't want to have to keep going out my phone to approve a deal. i want to look down and cap it and say, that is a good discount, that is approved. cory: and you would glance to do so? >> the average salesperson is glancing down at their phone 150 times per day. especially when someone is getting distracted. what a watch does is keep you focused. it is a glance, a quick movement. that is a productivity improvement for salespeople service people, anyone on the go. cory: greg, i thought the demo of your service on the watch explains what it is to go with, that a contractor hits the b

fact that he was just raw on the street, playing his guitar and singing his butt off. ♪ ♪ emily: technology is changingedia is moving so fast. scooter: yeah. emily: people can listen to music in so many different ways for free. how do you encourage your artists to change, to innovate in their own careers, to manage that transmission? scooter: i don't think you can fight the times. i think you just got to come to terms with the fact that album sales are never going to be what they were. but consuming of music is at an all-time high. you know, the sharing of music worldwide has never been this big before. so i think you just got to change your perspective. if they listen to something on spotify, or they listen -- discover something on pandora, or they see a youtube clip of an artist singing and six months later that artist has their first record and they're there for that because they've been watching on vine or on instagram -- you know, any of these platforms. or they are discovering a fan club on follow, and they are becoming obsessed with it. i tell my artists, make music the people are going to love.

emily: have you evolved your conclusions? have you changed? malcolm: you still believe the same thing you believed 15 years ago, then you are a joke. you are a fossil. ♪ emily: there are myths about some of the greatest creators and innovators that are so often boiled down into legend. what is the myth of malcolm gladwell, and what is the reality? malcolm: i don't think i have arrived at the level of myth. i am just about as boring and pedestrian in my private life as i appear to be in my public life. emily: "the tipping point" was your first best-selling book, you said you had no idea how big it would become. looking back, do you understand why it did? malcolm: i don't. my books and books of many other people caught a specific wave, i think, over the last 20 years. which is, there was this emerging class of businessperson demanding a higher level of sophistication in thinking about business in the world. i was part of that wave. but why my book was chosen above, instead of others, i have no -- the whole thing is as mysterious to me today as it

♪ emily chang: he has built some of the world's biggest pop stars.ustin bieber, ariana grande, korean viral sensation psy, and "call me maybe" hit maker carly rae jepsen. it all started when scooter braun stumbled across a youtube video of a kid in a canadian talent show. that kid was justin bieber. and braun is the manager who catapulted him to superstardom. but as the music industry goes through dramatic transformation, braun is reinventing his own empire, producing movies and tv shows, investing in tech companies like uber and pinterest, and looking for more stars he can make along the way. joining me today on "studio 1.0," rising every mogul, scooter braun. scooter, thank you for joining us. scooter braun: thanks for having me. emily: you were raised in connecticut. scooter: that is true. emily: the son of an orthodontist and a dentist. scooter: mm-hmm. emily: did you ever in a million years think you would be dominating pop music? scooter: i don't know even know if i am dominating pop music. i am just having a good time. when i was younger, i th

another 10 minutes, you might change your mind. emilywhat is the average valuation of all of the companies? paul: the valuation is is $30 billion. all the money is in the few big hits and you have to ask what percentage you end up and we assume it will be end up being 3%. 3% of 30. i have never done this. $900 million. until you asked me that, i never multiplied those numbers together. emily: an article said sequoia has made more money than y combinator has. and your policy is you don't make follow-on investments, right? paul: yeah. emily: would you consider changing that policy in order to make money off the hits that you pick? jennifer: we never say never. the problem with that is there is a signaling thing. if we are going to do follow-on investments, that would hurt the founders who are probably great investment opportunities but we didn't choose to answer on that. emily: does it bother you sequoia has made more money? paul: no. who cares? jennifer: i'm happy for them. emily: y combinator has gotten so much praise and a lot of critic

emily chang and i, we did this thing for years ago, this thing called uber. she called the taxi and i waited for an uber. i never thought the answer was something like 300 or whatever. you have an even bigger ambition. you want to replace cars. >> that's right. the black car industry is $1 billion. the taxi industry is about $12 billion. what we spend on automobiles is 2.15 trillion. >> is the principal technological advancement that makes that possible the smartphone with gps? >> that's right. >> or the big data and analysis? >> it is a combination of both. without mobile devices in everyone's hands, it would not be possible. >> what is the biggest area of growth? >> is about awareness. finding out about the service. so, it is generally just an awareness. >> we've got a lot of stuff to talk about. we will have a lyft driver, talk about a bunch of other companies. "bloomberg west" will be right back. ♪ >> i'm cory johnson, here is "bloomberg west." isis of bulldozed nimrod. iraqi fighters have launched a new offensive to retake the city of tikrit. china's cut

emily chang caught up with him at a fundraiser called build, an organization that promotes innovationn public schools. emily: what does the word entrepreneur me to you? >> win some you can take an idea and make it real. an entrepreneur can be a business person, an artist, a musician, anybody that can have an idea and turn into reality. emily: and how did you do that? >> i dedicated myself to it. when i was 22 years old, i promised myself i would work my tail off until the age of 30 at a minimum to succeed as an entrepreneur. that was extremely important because i had a lot of failure along the way. emily: the first company started failed. >> and then there was a company that i did not even start that i failed out. so i had to failures before go pro. emily: how do failures drive you today? >> at the time, they scared me. failure isn't easy. i didn't think him oh cool, i failed. success has taught me that one of the most important things that an entrepreneur can have his perseverance, a willingness to fail, pick yourself up, and give it another shot. if you don't have that great -- that

the combination of those two will cause enormous change. emilyyou have been a big supporter of bitcoin. the price has plummeted. marc: and come right back up. emily: do you allow for the fact that you could be wrong about bitcoin? marc: absolutely. look, bitcoin for us is very much -- the saving grace about the venture -- we are venture capitalists. i think like a venture capitalist. the nature of venture capitalists is we make 10 bets. we assume that five will go straight to zero. frankly, i do not think anybody knows one way or the other. but if it does work, it could be profound and revolutionary and gigantic. that said, underneath that, the thing i am quite condfident about is that the crypto currency concept will become really vitally important. i think it will be in the form of bitcoin. but even if it is not, it will be something else. i think netflix could have a billion subscribers by sometime in the early 2020's. i do not think there is any reason why it cannot be gigantic. ♪ emily: a lot has been made about the power of the sharing econ

emily chang and i did this thing for years ago with this thing called uber. we waited forever for a lincoln town car to show up. you have an even bigger ambitions are you want to replace cars. >> the taxi in the ministry is $12 billion. -- taxi and limo industry is $12 billion. our products like lyft line and hot spots or you can find someone else going the same way as you at a lower cost than ever offered before. >> is the principal technological advancement the smart phone with gps or the big data analysis? >> a combination of both wi. >> fundamentally, what is that -- >> it's about awareness. having passengers find out about the service. passenger demand continues to increase. it is an awareness thing. >> we will have a driver on and we will talk about other companies, building a brand come understanding the market the pink mustaches. "bloomberg west" will be right back. ♪ corey: islamic state militants bulldoze the remains of -- they are calling for a u.n. meeting on how to protect iraq's cultural heritage. iraqi fighters have relaunched a new offensive t

emily: would you ever consider changing that policy? order to make money off the hits that you picked? jessica: we never say never. but the problem with that, emily, is that there is a signaling thing. emily: right. jessica: and so, if we were to do follow-on investments, we are telling other investors who we believe are going to be the best, and that would hurt the founders, who are probably great investment opportunities, but we just didn't choose to do a follow on in. emily: does it bother you that sequoia has made more money than you have? paul: no. who cares? jessica: i'm happy for them. i really like sequoia. emily: y combinator has gotten so much praise but also a lot of criticism. why do you think it is so controversial? paul: one of the most surprising things, i realized, as why y combinator became more successful, is that the more famous something becomes, the more people want to attack it. jessica: it has always been a mystery to me though. because, honestly, every night i go to sleep, i think did we help the founders today?

. ♪ ♪ ♪ emily chang: he has built some of the world's biggest pop stars.bieber, ariana grande korean viral sensation psy, and "call me maybe" hit maker carly rae jepsen. it all started when scooter braun stumbled across a youtube video of a kid in a canadian talent show. that kid was justin bieber. and braun is the manager who catapulted him to superstardom. but as the music industry goes through dramatic transformation, braun is reinventing his own empire, producing movies and tv shows, investing in tech companies like uber and

. ♪ ♪ emily chang: by now, you know his story.rted the social network in his harvard dorm room, grew it to 1.4 billion users, and became one of the wealthiest men in the world. but mark zuckerberg may not be done changing the world just yet. since taking facebook public his bets have only gotten bigger. spending billions expanding his empire into photos, messaging, even virtual reality. internet.org may be his most audicious bet yet. featuring an epic battle with google, drones, lasers, and stratospheric hot air balloons to bring the internet to the farthest corners of the earth and win billions of new users in the process.

." ♪ ♪ emily chang: by now, you know his story.rted the social network in his harvard dorm room, grew it to 1.4 billion users, and became one of the wealthiest men in the world. but mark zuckerberg may not be done changing the world just yet. since taking facebook public, his bets have only gotten bigger. spending billions expanding his empire into photos, messaging, even virtual reality. internet.org may be his most audicious bet yet. featuring an epic battle with google, drones, lasers, and stratospheric hot air balloons, to bring the internet to the farthest corners of the earth and win billions of new users in the process.

[laughter] emily: does it change how much you are paid or how you are paid? aaron: sure. if you are in a position to make money for other people, if you have a track record, if you get in business with somebody who's very quickly trying to play in the big leagues like netflix and amazon, they will want to attract people with track records. money is one way they will do that. honestly, you get to a certain point where that is not the most important thing to you. it's not in the top 10 most important things to you. the most important thing to you is a story well told. emily: would you write or produce for netflix or amazon? have you considered it? aaron: i would absolutely write for amazon or netflix, or bloomberg. emily: great. aaron: yeah. i think that bloomberg should have more scripted content. i would love to do a show for bloomberg. emily: i knew you would have some advice. "sports night" is a series that was critically acclaimed with a small audience. aaron: but nobody watched it. emily: short lived. if amazon came to you and said we wanted to give you season three,

[laughter] emily: does it change how much you are paid or how you are paid? aaron: sure. if you are in a position to make money for other people, if you have a track record, if you get in business with somebody who's very quickly trying to play in the big leagues like netflix and amazon, they will want to attract people with track records. money is one way they will do that. honestly, you get to a certain point where that is not the most important thing to you. it's not in the top 10 most important things to you. the most important thing to you is a story well told. emily: would you write or produce for netflix or amazon? have you considered it? aaron: i would absolutely write for amazon or netflix, or bloomberg. emily: great. aaron: yeah. i think that bloomberg should have more scripted content. i would love to do a show for bloomberg. emily: i knew you would have some advice. "sports night" is a series that was critically acclaimed with a small audience. aaron: but nobody watched it. emily: short lived. if amazon came to you and said we wanted to give you season three,

. ♪ emily: technology is changing and social media is moving so fast.ple can listen to music so many different ways for free. how do you encourage your artists to change, to innovate in their own career, to manage that? scooter: i don't think you can fight the times. you have to come to terms with the fact that album sales will never be what they were. the consumption of music is at an all-time high. the sharing of music worldwide has never been this big before. you have to change perspective. if they discover something on pandora or they see a youtube clip of an artist, on instagram, or any of these platforms or they are discovering a fan club and they become obsessed with it, i can help people make the consumer will big take what they want to my job is to make sure for my artist as many people give them a shot as possible. i tell them have fun. let me worry about it. emily: what are you worried about? scooter: are we innovating? are we disrupting? are we waking up every morning and saying, ok, what cool [beep] can we do today? emily: how are you disru

change. it will serve every major industry. emilyyou are seeing so much change and disruption in the world of enterprise technology. larry ellison stepping down as the ceo of oracle. hp splitting up. ibm struggling. when it comes to incumbents versus startups, how does it play out? aaron: so, every couple of decades, you have this sort of changing of the guard as it were. startups that are really optimized for that disruption have an opportunity to take advantage of that and potentially build the next era of ibm and hp and microsoft. at the same time, you do have incumbents that have a lot of cash. they are led by incredibly smart and astute leaders that understand this change. the changes you are seeing are driven specifically because they know they are being disrupted. emily: peter teel said to me for example, hp is not a technology company anymore. it is a bet against innovation. aaron: that is a provocative statement. but i think in terms of relevance, you have leaders of these companies that are recognizing that their previous s