he broke the roku story. david menlo.is david, why is this happening now? >> the prime example is what happened with facebook and whats coming upf the blue with a valuation of $16 billion. anything along that kind of technology, people think they can get 2x, 3x of what they thought. new fundingived back in may. any idea why they did the ipo now? >> it may have less to do with those vc's meeting their money back now. it is more about the opportunity resented as the business gets bigger. we are seeing roku and the apple cast, ae, google crone lot of these streaming devices, so the market is getting bigger quickly. our understanding is, in the case of roku, something they think about is, if we could be public, we can beat up your play in this area. apple has a lot of businesses they focused on, the same for google and amazon. if we would go public, we would be a standalone. we have been hearing recently that maybe later this spring we could see a new version of apple tv. we do not know what kind of form it will be, but it is possible the timing of roku could b

roku devices have been pretty successful.rs coming into this market to take advantage of this streaming phenomenon whether it is apple tv or google has google chrome. consoles likeng xbox that is used for streaming and there is some buzz that amazon will get into this as well. perspective,crew this company can say look at the landscape. say we could be the pure play on this interesting trend. it makes for an interesting investors story. moreple wants to get aggressive and amazon is entering this market so what is left for roku? them thatd question before and the ceo makes the argument that if more companies have come into this market, it has helped them. when google launched from cast, the rolu sales went up. they said more people are aware. there is a certain amount of familiarity that is required for this market to continue to take off. that was good news but let's assume that more competition were to hurt roku but the company is making the argument that it can license its technology to others that want to be in this busine

it was more of an entertainment device, set top like a roku.are repositioning slightly as an entertainment and they gaming device. it's another foundation when you can build and did officers significant differentiation between an apple set-top box or a roku. >> how has amazon prime gone? the trick is to have it on the box. >> prime, video on demand, being built into tv's. only apple as the orthodox from preventing some of its rivals to go to the box. >> brad stone from "business week," thank you. >> move over, google. oakley has a pair of high-tech goggles for the ski slope. we are going for a run coming up. ♪ >> i'm emily chang and this is "bloomberg west." it is the end of the nara. jay leno is passing the torch to jimmy fallon. is nbc going to take a ratings risk especially after the conan disaster? jon erlichman is with us from los angeles. i remember johnny carson and now i just feel old. >> really? good on you. when you look at the numbers behind the tonight show, it's amazing how big of a risk this is because that program is one of the f

foundation where you can build a set top that offers differentiation over an set- set-top box or a rokuox. >> one of the tricks to getting amazon prime to work is to have it on your cable box or have it on your roku or apple tv -- that is never going to happen. >> that is never going to happen but otherwise it is everywhere. rhymes and video, video-on- demand, it is being built into tv's -- they are happening. >> amazon continues to rattle. brad from "businessweek," thank you very much. >> thank you, cory. move over, google. oakley is already with a pair of high-tech goggles. we're going for a run coming up. ♪ >> i'm emily chang. this is "bloomberg west." jay leno's last -- second last "tonight show" is tonight. he is passing the torch to jimmy fallon. jon erlichman with us from l.a. ira member johnny carson on the tonight show vividly and now i'm just feeling old will stop >> -- old. >> really? that, but good on you. when you look at the numbers beyond the "tonight show congo is amazing how big a risk this is because that program is one of the few that in bc have that is number one and

that could be good news for content companies like netflix and over the top cable provider roku.expect a massive exodus of cable addicts. americans are still spending more than four hours a day in front of the warm glow of their televisions. they'll just have to pay more for it. regulators could make comcast agree to certain provisions to prevent anticompetitive behavior. >>> another big change on your tv, the iconic "tonight show" has a new host. it's not easy to replace a legend like jay leno but that hasn't stopped jimmy fallon yet. the business of being jimmy fallon next. you raise her spirits. we tackled your shoulder pain. you make him rookie of the year. we took care of your cold symptoms. you take him on an adventure. tylenol® has been the number 1 doctor recommended brand of pain reliever for over 20 years. but for everything we do, we know you do so much more. tylenol®. i takbecause you can't beatrning for zero heartburn. woo hoo!re. [ male announcer ] prilosec otc is the number one doctor recommended frequent heartburn medicine for 8 straight years. one pill each morni

entertainment from the web to their tvs using a range of set-top boxes and consoles such as apple tv, roku or microsoft's x-box. now another tech titan could be entering this market. amazon could soon roll out its own set-top box which analysts say could be available as soon as april. >> i think amazon dominated in books, and i think they feel as though they missed out on music and movies. and they're determined not to miss out on games. so i think that they hope to be the download source of choice for all entertainment. >> reporter: he says the set-top box could allow consumers to stream music, movies and games available on android-based phones or tablets. it could also come with a hard drive so users could download content rather than just stream it, another reason why r amazon wants a set-top box in your living room, it could be a new which for the e commerce giant to market goods. >> advertising is the big big moneymaker in the world of television. and amazon has millions of products to advertise. it really is a big advertising platform. so if it can get in front of you in your televis

they have to stay competitive with rope to -- roku. we just heard some on the google story.e cast out at they put out at a very low price got a lot of people's attention quickly. that is part of the story. apple has to continue to come out with new devices. >> the pressure has been on apple to come out with something new. it does not sound like the big new tv that people have been talking about. >> you have to keep microsoft in mind i'm a too. the xbox one has some of these capabilities. what do you hear about apple? they were trying to get involved in these negotiations with the carriers and with a cable operators, but the cable operators were very reluctant to make a deal with apple. they saw what happened with the itunes and the music industry. companies the cable have been especially difficult to work with. hasn't that bit of -- hazmat been a -- hasn't that been a big stumbling block? >> the biggest fear is that if your cable bill is looking too big and too high, you are going to choose one of these alternatives. maybe this is a sign that they are aware of the alternativ

this story on a -- roku idea.to >> apple tv has a comparable project. we have learned that while the company has not made a final decision on doing an ipo, it has spoken to bankers and is certainly thinking about the idea of potentially being the one company in a fast growing that would be a standalone, a company that investors could look to and say this is the company that truly specializes in this area. the company doesn't necessarily need money right now. they have some high-profile venture capitalist backers. tune into "bloomberg west lowe's quote two days a week -- to times a day. is back ine court session. this morning the justices heard oral arguments about whether the environmental reduction agency permit right to place requirements on factories. we are joined my from outside the high court. who is required to get these permits? about 700re facilities required to get them right now. not for greenhouse gases. we are talking refineries and power plants. inht now they are limited how much other pollutants they can put out and what the epa wants to

that is available on all sorts of devices, like roku. maybe there is a discussion they make that a standalone service. you were talking about whether amazon prime prices go up. they could say, here is the standalone video offering. you pay a little bit more. you could ultimately get everything tied to prime. it is hard to know exactly how it will play out. >> t rle o difference in negotiations with programmers. what do you make of that, at that scale is not a factor anymore? we do not see negotiations for programming. >> scale is a factor and is important. i am not trying to contradict what tom rutledge is saying. he is trying to make a more subtle point. when they talk to hbo or viacom and you see the programming guy, this is the scale they get in terms of the fees they have to pay. that does not change until you hit a much bigger array of customers. nu are hitting 25 million, you might get a slight discount. comcast already gets that. 20 million customers and 10 million customers, not a big difference. you still have to pay more you wo

modern day, amazon, and a report in re/code jon fortt they could be gearing up to take on apple and rokut's peter's report at re/code and there were rumors at a holiday season launch for this product. didn't happen. now it looks like perhaps march, interesting because overall in the tv market we've seen the tv makers are trying to come out. they're throwing everything out there. 3d didn't really work and now trying to curve the screens. low led. larger sizes are capturing people's attention. traditionally in technology when we see that it's a chance for an innovator to come in with a solution, pc market, kind of stagnated before apple came in with some innovations. so the question is, i think, where does amazon price this and how does prime work with it? as we know, there have been rumors about them potentially raising the price of prime. carl sniffed that outcoming a bit in advance. but if they do that, it potentially makes their video offering a little less compelling because you've got to be a prime member to see this stuff. so it will be really interesting to see how they do that, wh