facebook and google? bourkoff: whether youtube,y players, google, distributors, at&t, charter, comcast and verizon all have access to the consumer. they are all offering new services. what did disney did, as i've mentioned before, last week is to create a new offering and leads to a very crowded marketplace for the consumer to digest. it is not as easy as a bundle or package. people are looking at many authors and put more value -- offers to put more value to dictate what the packages will look like. they have a lot of data of what consumers like and will pay for. you will see more like a facebook, google, at&t and verizon take the charge. vonnie: will as they have to buy them? facebook google has come out. is that what consumers want? is facebook video what they want? aryeh bourkoff: it is part of what they want. i do not think it is fair to say one company can provide everything that consumers want. facebook is good at user gentle reader content -- a generated content where our whole is strong at a prem

so the question becomes, is this going to be another facebook/google-like situation where google put the sand and didn't watch facebook catching up in the rear-view mirror or is disney going to attack and start producing massive amounts of online content? and espn has unique opportunities here espn is a collection of a lot of different sports as we all know. if something like poker becomes extremely popular, they could with a direct to consumer offering have a poker channel and do it with a level of professionalness that other people can't it will open up new opportunities for them and their challenge will be when the nba decides, nba is a global sport, we're going direct to consumers, which obviously they do with league pass. if league pass gets too many subscriber, it will be a direct to consumer world. and this idea there will be intermediaries is going to go away. >> i think i would be more in favor of "toy story 4" and the "frozen" sequel than the poker channel. but we did hear that you got your hands on the new at the scene tesla model 3. >> i'll speak about myself in the third

who investedrson in facebook and google orlene wrote op-ed today saying, i am terrified by the damage done by these internet monopolies. facebook and google produce short-term happiness with serious negative consequences in the long-term. the fault lies with advertising business models that maximize sttention at all co leading to brain hacking. how you explain that? dream is to try to get them to let their brand. i don't think that is different whether you are doing online or off-line advertising. the consumers are smart enough that if they get bombarded by it might overwhelm theyrimary purpose of what would therefore. whether it is a newspaper, online website, or video. they walk away. emily: he rent google european operations for five years. they just got a $2.7 billion fine. a threat are these european regulatory issues? nikesh: i don't think they are a serious threat. google is a phenomenally --egrative company innovative company. i don't think any of these is a long-term threat. if some conversations allow them future, ibase for the think google is already innovating in so many d

don't think there is a third platform out there which has the scale to be able to build what google and facebookave built. so i think we are going to see more and more concentration at google and facebook in the advertising space. i think that is not going away soon. emily: would you say it is a duopoly, and is that ok? nikesh: it's a duopoly, yes, for now. there are many other players who are relevant in the advertising space, both off-line and online, whether it is going to be snapchat or twitter or pinterest in the future, or some of the traditional players who are actually doing a phenomenal job of transitioning from off-line to online. there will be many players in the space, yes. for the forseeable future, will google and facebook be the largest players? yes. emily: do you think there will ever be a third player, a third company, that takes a third of that pie? nikesh: i think it will be hard. but i do think there will be a collection of companies, which, amongst themselves, might command as much advertising share as google or facebook does, but it won't be one third company at least for n

emily: the person who invested in facebook and google early wrote op-ed today saying, i am terrified damage being done by these internet monopolies. like a gambling, nicotine, alcohol or heroin, facebook and google and youtube produce short-term happiness with serious negative consequences in the long-term. the fault lies with advertising business model that drive companies to maximize attention at all costs, leading to ever more aggressive the brain hacking. nikesh: every dream is to try to get them to let their brand. i don't think that is different whether you are doing online or off-line advertising. the consumers are smart enough that if they get bombarded by advertising, it overwhelms the primary purpose of where they went somewhere for whether it is , a newspaper, online website, or video. they walk away. emily: you ran google's european operations for five years. they just got a $2.7 billion fine by the e.u. there are more inquiries open. how big a threat are these european regulatory issues? nikesh: i don't think they are a serious threat to google's long-term business. goog

/google it is facebook and everybody else.nk you will have diminishing relevancy of other media channels, all the traditional ones. look at television time spent increased last year but advertising fell. you had advertising dollars fall across every channel. television, print. the only space growing is mobile. the companies that command mobile are google and facebook. the mixture of the following traditional assets along with internet is not enough to be made up by the growth in mobile. emily: what does that mean for everybody else trying to take a bigger slice of the market whether it is snapchat were twitter --or twitter? >> the interesting thing about snapchat is i thought they had ulse on what it meant to have successful mobile content. what they were hitting on with discover i thought was excellent. they were securing deals to capitalize on that with premium content providers. if they are able to execute on that, they can serve as a third-party alternative. they have not been showing us they are able to do that yet, which

you wrote an op-ed in usa today about how facebook and google are anti-consumer.nicotine, , facebookeroin provides short-term happiness with serious negative consequences in the long term. users fail to recognize the warning signs of addiction until it is too late. in a day only 24 hours and tech companies are making a play for all of them. you think apple is the only company that can change the tide? roger: i do. and it's because their business model is based on selling devices, not occupying your attention. the issue is not that facebook and google are managed by bad people. they are not. they are managed by good people. the issue is the business model. 10 years ago, we lived in a world where being a studio executive or running a network -- those were great businesses. from information scarcity to a attention scarcity. people were on their phones from the moment they woke up until the moment they went to sleep. there was so much available that the battle shifted from controlling content to controlling attention. google and facebook, because of their advertising

don't think there is a third platform out there which has the scale to be able to build what google and facebook have built. i think we are going to see more and more concentration at google interface look in the advertising space. that's not going away. emily: would you say it is a duopoly, and is that ok? >> it's a duopoly, yes, for now. there are many other players who are relevant in the advertising space, both off-line and online, whether it is snapchat or twitter or pinterest in the future, or some of the traditional players who were doing a phenomenal job of trent shinnin transitioning. for the first seeable future, will google and facebook be the largest players? yes. emily: do you think there will ever be a third player, a third company, that takes a third of that pie? >> i think it will be hard. but i think there will be a collection of companies, which, amongst themselves, might come out as much advertising share as google or facebook, but it won't be one, at least for now. emily: roger mcinerney, who invested early, just wrote an op-ed saying, "i am terrified by the damage being done

but is google better or is facebook better it's really completely different if you're looking more forward to be to be crowned king than say linked in is a great aspect is won't have a great product but google's a default and we have to understand that over three billion internet searches are conducted per day on google unbelievable that's insane so that's why google's the big behemoth and i don't even comes close to that right but facebook offers a different type of a platform in which their people are on there every single day for hours at a time so advertisers want in front of them it seems like companies like facebook have figured out a way to make money but it wasn't always the case i remember in the early years of social media that was a real struggle is figuring out how these free platforms would bring in revenue correct i remember when i first went public it was so interesting to see them so the stock price go up and then it just plummeted because nobody had faith that they would be able to monetize their platform and their user base but once they start to see growth w

facebook, for example, and google have made strenuous efforts recently, under some pressure to do so,ve made strenuous efforts recently, and they dominate digital advertising. with us is stephen woodford, chief executive at the advertising association. there is a lot for us to get through in these results but first of all it is worth living at what advertising tells us about the wider economy, because it is one of those things we call a bellwether, when advertising is doing well, the economy tends to do well, and vice versa. so what does this tell us about the economy? when you look at the contribution advertising makes to the economy it isa advertising makes to the economy it is a very important bellwether. it has a big impact on the overall economy, as well as being a big sector in its own right. 0ne economy, as well as being a big sector in its own right. one of the things we should think about it is 2016 was a record year for the advertising industry, particularly in the uk. 2017, we are still forecasting some growth. why was 2016 so good? it was surprisingly good because in effec

facebook, amazon, and the tech jobs, you google, facebook, amazon, and the techjobs, you are google,u are looking at ten or 20% women, it is very unbalanced and has been for a long time. lots of companies are throwing a lot of money at this with a lot of initiatives and outreach programmes but it doesn't seem to shift things as dramatically as people hoped. the fact that he has been sacked, and perhaps it was inevitable given how viral the memo went, has that become a political debate in itself because his whole issue was that we are not allowed to have a healthy debate about diversity and this shows that. exactly that, a lot of people stood up exactly that, a lot of people stood up to him and said how can google promised to promote free speech when one of its own employees as a contented one of its own employees as a co nte nted to one of its own employees as a contented to ignite that debate and been fired and that does not promote free speech at all, itjust is getting rid of the viewpoint that google doesn't like. he says he has heard from a lot of people and a lot of staff member

is he facebook google? facebook.ifying things as you can get on social media by now how you can kill people with their ban. that has influence people and it is called people. off the grid is my solution to it all. the daily mail, i was wondering where this was going to come up because did you watch the documentary is celebrating... i've not seen them because i have been away. but i have been very lucky enough to meet both diana princess of wales. oh, yes and what your thoughts? she was extraordinary she was different, she changed the royal family. i think she would be quite horrified to know that this very bad marriage, and it was a very bad marriage, and it was a very bad marriage, but there are millions of people in this country have had a very bad marriage, now comes tumbling out, some of it is true.|j don't think she would be horrified, if you read the sunday times magazine today where he talks about how he

internet is, and infrastructure companies like level three or cloud flair that are out there, at&t, facebook, google, amazon, all play different roles. what's important is the answers for each of those companies is potentially different, take google as an example, two days before we kicked the daily stormer off, google said, you can't use our registrar services, they didn't block them from using our isp, from using their browser or pull them from search. those are all things they could have done, those feel like they're wrong. the deeper you get into the internet staff, most of your viewers, and this is even a silicon valley aware audience, haven't heard of cloud flair. more that those are the compa companies making editorials, that's where there's concern. >> let me take you back to last wednesday again, would you have made the same decision? >> i think we made the right decision in the short term, because we needed to have this conversation, in the long term, deep infrastructure companies like cloud flair making edit editorial decisions is dangerous. >> thank you for being with us. >> thanks. >>>

becausest pressure as the attention shifts to digital, mobile, facebook, google and others >> roger, check this out on facebook it is kind of hard to find the app. you have to find the watch tab, where is that? but then it just reinforced by feeling they're going to have to split off a separate property just for video and make that a destination, make it really great video that has a social component instead of a social experience with video thrown in there. what are your thoughts >> i think once again you got your finger exactly on the issue here that at the end of the day, there is a lot that goes on in the facebook website and the facebook apps that get in the way of trying to watch a video this kind of program stuff but they have a long track record of launching things inside of facebook and spinning them off obviously messenger was the most successful initiative that they did that way and i'm completely with you. i don't think this can achieve any kind of large scale success without them spinning it off i think it's actually more important to spin this off than it was messenger m

not just for facebook and google but the next facebook or google.f there is going to be a chance for another sort of wave of technology innovation whether it is through an ai form or others, it's going to be that much harder these guys really own the block right now. >> speaking of facebook, a survey suggests that falling out of favor with teenagers. that's according to the latest data e-marketer. facebook among 17 to 12-year-olds will drop 3.4% as they give up the platform. that marks the first time that marketer predict aid decline in facebook usage for any group collin, we talked about this this morning with krayemer who said zuckerberg saw this coming a long time ago. that's the whole point of building what is essentially a portfolio of platforms >> yeah. i agree with that. in fact, most younger users are -- have migrated to camera first platforms like snapchat and instagram. i think what we found is that use cases are different between snapchat and facebook. one is much more real time communication the other is more of a repository of shared co

we report on apple, facebook, and google.point in terms of media creation, production, ownership, development, netflix and amazon are on another plane from those companies. netflix and amazon are making as much tv as the biggest media companies. they are streaming all over the world. apple and facebook are still dipping their toes. emily: hulu just had its first hit. fact that amazon and netflix are so far ahead me nobody else has a chance? bob: the content creation business is tough. there are decades of history of how difficult it is to make that a successful business. it is a hard skill to acquire. you're seeing a lot of effort. the tech industry marrying up with hollywood and bali would -- bollywood to come up with compelling original content. the notion of all that content being given to -- licensed to netflix to use may go away so they have to be prepared if they want to survive long-term as a media company. we have to start thinking of them in that regard. emily: bob o'donnell, president of technalysis, thank you for j

emily: david, social networks, facebook, google, they have thousands of workers around the world notg with hateful content but offensive content, inappropriate content. >> suicide risk. emily: they've been criticized for outsourcing this work -- some of the hardest work to other countries where employees don't have the same protections -- what do you make of that? >> i've never been a big critic of outsourcing. jobs are jobs and people if they are capable should be allowed to do work. the one question here is, does facebook have sufficient control and guidance capabilities over the people who technically work for outsourcing companies deco i suspect --? i suspect they do. those people are talented and well trained. it is hard work. it is the kind of work that americans don't want to do. it involves looking at things over and over again, looking at pornographic photos, looking at awful things. they talk about the need to give these people psychological counseling to do the work. i don't criticize them for using outsourcing firms. maybe for not having enough people and making fast enou

as for the new players, we report on companies like apple and facebook and google but we have really where in terms of media creation and production and ownership development, netflix and amazon are on another plane. asy are making as much tv the biggest media companies out there. they are streaming over the world. apple and facebook are still dipping their toes. its firstu just had hit, the handmaid's tale. being far ahead meaning no one else stands a chance? >> the content creation business is tough. there is history about how difficult it is to make that successful. it is a hard skill to acquire. you're seeing a lot of efforts -- the tech industry marrying up with hollywood. bollywood, other places trying to come up with original content. all that content being given to netflix, licensed to netflix to use, that may go away. they have to be prepared if they want to survive as a media company long-term. shaw and bob o'donnell there. that does it for this edition of the best of bloomberg technology. we will bring you all the latest in tech throughout the week. tune in each day. all e

but i'm deadly serious about the stocks, though our favorite names are still google and facebook.nd it comes back a little bit to what we were talking about earlier. when you look across the landscape, you have to weigh growth versus the valuations we're paying i look at apple and think it's a multi-year gdp type of grower and the other companies are growing very, very much faster than that. and i think the price that you have to pay for them is much more attractive for the growth you get. >> andy hargraves and shawn carol, thank you >>> back to the markets, we'll get a rapid update on the economic growth from steve liesman back at headquarters >> john, good morning. we got the first piece of data for the third quarter so we'll tell you where we are tracking for the third quarter. that was the auto sales. coming in around where economists expected. it's a good number running here at 2.5% tracking for the third quarter. a good way to start the quarter with a range of 2.7 to 2.3 the 2.4% was reported due to construction levels. moody's analytics call late it for us and estimate it a

i look at the facebook ad spend roughly will be at 40% their ad revenue will be up 40%. google something like 20%. in general i look at an ad sort of agency as a travel agency, right? there is not necessarily a need. as facebook is going in and doing all the work measuring, targeting. they can go direct if i am procter & gamble spending hundreds of millions of dollars to advertise through facebook, i don't necessarily need an agency i can go directly to facebook and get the same exact thing done because they're doing all the leg work. >> is your point that ad revenues are -- the margins in the ad business are as strong as they have ever been? because they're not. >> no. they're not. ad businesses in general, the revenue will be impacted because people will go direct. there is no reason to use an agency in this case. i look at facebook they are doing all the work as far as whether or not -- what the penetration looks like the sort of alignment with the advertiser and target audience all that stuff is done internal. they have the data and they sift through it there is no reason f

facebook,ple, google, these are companies which do not just impact the united states, but they have anobally. we have to be aware ofies which can be threatening to people in the administration but also other businesses. emily: since the events of charlottesville, virginia, a surprising topic has come to the forefront of silicon valley. how far should tech companies go to salads he groups such as -- asnazis?ence he groups such we of donald trump. that is partially because, even before the election,here was all this controversy around companies like facebook or google about if they were media or technology companies. if you are a technology company, you do not have to take responsibility for the content on your platform. if you are a media company, you . most of these companies want to be a technology company,ecause you do not have to spe as much on content moderation. however, a week ago, suddenly theomthese companies realized te need to take some responsibility . that came to the forefront when google and go daddy and a bunch of other companies took down the daily stormer which is a n

facebook -- stop google and facebook from destroying journalism. and so there is no doubt that the power that these platforms have is different in character from the one -- from the power that say the three networks had. because if you look at the affect that they're having on the revenue sources for -- for journalists it's a -- it's a completely different world than one where you had this 14 sort of oligopoly of the broadcast networks and the like. it's a different kind of monopoly though, right it's a different type of power and where there's going to a whole session here at aspen later today about whether google and facebook are too powerful. so i commend that to you. but we have this sort of bizarre situation, right, where you have this concentrated power among the platforms and you have this fragmented media environment at the same time. so you have more information at your disposal, information and disinformation, than we've ever had before and yet the power of any individual platform, you know, is diminished except for just a select few like

it raises a few questions about the future of the tech sector, so we have those big giants, facebook, googlegram, to expand. just to say, snapchat‘s earnings are out today, and in terms of your views on facebook, matt says, i'm worried it will be the perfect forum for fake news and alternative facts. alex says, not at all, i want to sit on my sofa, not watch it on a tiny screen. bye—bye. good morning. iam i am pleased to say that this morning is a much sunnier start than yesterday, some really quite heavy rain in the south—east yesterday, rainfall totals of 40—60 millimetres. the struggles of what you expect to see by the end of august, so a whole month's worth of rainfall in 36 hours. a few showers in the south—east, but elsewhere a ridge of high pressure building in will bring more settled conditions and some sunshine. by four o'clock this afternoon, plenty of dry weather across the south—west of england and wales, perhaps still the odd shower towards sussex and kent, but showers few and far between. for most, much drier, certainly across the midlands, northern england, scotla nd the midla

facebook -- stop google and facebook from destroying journalism. and so there is no doubt that the power that these platforms have is different in character from the one -- from the power that say the three networks had. because if you look at the affect that they're having on the revenue sources for -- for journalists it's a -- it's a completely different world than one where you had this 14 sort of oligopoly of the broadcast networks and the like. it's a different kind of monopoly though, right it's a different type of power and where there's going to a whole session here at aspen later today about whether google and facebook are too powerful. so i commend that to you. but we have this sort of bizarre situation, right, where you have this concentrated power among the platforms and you have this fragmented media environment at the same time. so you have more information at your disposal, information and disinformation, than we've ever had before and yet the power of any individual platform, you know, is diminished except for just a select few like

the way that we saw violence in charlottesville, in reaction a lot of companies such as facebook, google, they removed racist beach from their platforms to read think you are making the right call in this to your circumstance? >> -- data this particular circumstance? >> i completely reject the harmful and hatred of -- the material present insula. the material present insula. -- i rejected the hatred that was in charlottesville and i was astonished to see what happened. and i saw it in the conference yesterday, the comments that there were five people in both camps, the president point i think was wrong. i do not think there are fine people in these hateful groups, i don't think you can be a fine person in a hateful group, the two things do not go together. as far as the government regulating hate speech, i think harmful speech should be called out and i think more speech is better as the solution to that rather than trying to filter out some of those things. i think there is a better approach to it, how do you -- education, more information, more discussion, more speech is the solution r

to help our investors find just better fundamental areas and better stocks and we think that facebook and google and potentially snap actually offer better opportunities from current levels >> is it a zero sum game, though, brent? is it advertisers like procter & gamble saying, well, we're going to go on facebook or twitter can't they do both >> they want -- they want multiple platforms it's -- i covered software for 20 years they want on microsoft and they want to be on oracle it's the same thing here but what they don't want is every time advertisers we speak with go back to twitter's platform, they don't get the roi and then they turn off and they just stick with the proven categories. so, you know, we believe that in many ways, in the conversations we've had recently that snap has actually seen better engagement than twitter and we also think when video takes off, and it is taking off, that snap's just a better platform for video so, we -- again, i think if you separate proven roi, facebook and google, if you separate experimental, you have -- you have snap and twitter. and we think snap is

her business is now over 40% digital and we have learned digitale year 2000 changes in google and facebook ever biggest and third biggest investment with our clients. have a 75 billion dollar portfolio that we invest in media around the world. number one and number three last year were google and facebook. google and facebook are the duopoly in digital and we work closely with them. that's more of an opportunity than a challenge. firstly, activist investors who have been using low-cost capital to its central banks have been running the economies of the world on loose monetary policy to avoid the negative impact on employment and society of austerity post-lehman and buying bonds. with cheap money and the low,est rates have been those activist investors have been able to establish capital to make investments. has been similar force zero-based budget is who have been buying companies are investing in companies with the low cost of capital and that has put tremendous short-term pressure in the goods sector which is about 30% or one third of our revenues. seen the package comes in particular ta

after president trump's election victory last november of 25% since november but even amazon facebook and google contributing to gain some tech companies are offering to stay private longer. they are more you are saying a shakeout of the winners and losers. >> you make a good point because what we are seeing are these large companies fight facebook and amazon netflix google companies. they have their own investing so they are saying forget about private equity. we are going to invest directly in companies and you are the end of fishery or it. how does that go down, tell us about your company. >> it's a digital meeting company. mid-teens to mid-30s. we had business number to tease me. we have a media company and real-life experience with in spite of problem with disney as they haven't figured out how to tap into this young audience that we did just that. similar business off this is a new audiences. maria: you are saying large-company saying we can do this on our own. we will put money behind the startup. >> was becoming clear is it's hard to build these companies. it takes more than a day or an

violence we saw in charlottesville over the weekend come in reaction to that a lot of companies, facebook, google, go daddy, removed nazi or racist speech from the platforms that do you think that making the right call in this particular circumstance as opposed to something like fake news? >> guest: it's a very difficult issue. i don't, i completely condone, i completely reject the harmful and hatred material that was present in charlottesville. i was not available to comment previously. i'm not sure many people needed my input on the subject matter, but i was just us down to want to cut back to town to see what it happened, to see the press conference yesterday. i see the transcript from some of that and troubled by the comet that there are fine people in both camps. because the president point i think was wrong. i don't think there's fine people in some of these hateful groups. i don't think you can be a five person and hateful group or i don't think things go together. a little different than i want the government to regulate that speech. i think harmful speech should recall that and i think t

google itself had to fix. coo sherylbook's sandberg the memo on her facebook page.he said inequality in tech is not due to gender differences, that is a stereotype that persists. we all need to do more. we what they are later for her -- later from her in this hour. the culture wars brewing within the tech industry. coming up, facebook is bolstering free speech. their latest move and the impact. this is bloomberg. ♪ emily: facebook is doubling down on its efforts to combat hate speech. staff inadding 500 germany, to crack down on offensive posts. germany's parliamentary lower house passed legislation, threatening fines, levied on large social networks that failed to report hate speech or remove illegal postings. joining us now, caroline hyde in london. and techonomy david kirkpatrick. good to see you in person. caroline come i want to start with you, laying out what is behind the beefing up in staff here. caroline: it is interesting, because you heard as recently as back in may and june of that we would see a beefing up across the world of content control people that

the lowest prices. >>> tech companies including facebook, amazon and google are in the line of fire.cs say they have too much power. that's its message from the book "move fast and break things. how they cornered and monopolized democracy. it's good to you have with us. >> great to be with you, carl. >> your book got a huge recommendation from roger mack in a my on our air yesterday or the day before and argues what he was arguing too. that is that these companies have a lot of money, a lot of power and artists, i guess, in your view have paid for it for a long time. can you explain? >> well, i mean, what's happened for musicians sh for instan, fof you're a musician and had a very popular song and could get a million down loads on itunes you could make $900,000. you get a million streams on youtube, you make $900 so what's happened is the domination of the big platforms, google, facebook, youtube, have essentially forced the money for artists, journalists, everything out of thesystem there is relebtless push into that space and basically wipe them off the map what is happening is i w