tv Charlie Rose PBS September 2, 2009 12:00pm-1:00pm EDT
>> re: welcome to the broadcast. contin we continue our vacation schedule by looking at some of the interesti people who've come tohis table to talk about theirork, their life, and th future. th's what we call toght's program: the future. our guestsre eric thisid-. >> the importanthing here is that the phenomena of news regenerated content which youtube is an emple is, i think, the dining expressi of humanity over the next ten to 0 years. >> rose: bl gates. >> it won'te the keyboard and the house, tho will be there, bu voice type capabity will have been aed and sohe naturalness ofooked at that calendar, lookt this output,
look how it's fallg short, you'll bso much more physian-assisted suicide site with information a collaboration. >>ose: and mark andrewson. >> the kindle does bks, magazines and nepapers but that weight in a couple years is going be doingideo, music, video conferens, web browsing. it's gng to be doing everytng. >> rose: thr people who helped define our future next. captioning spoored by roseommunications
from our studi in new york ty, this is charlie rose. >> rose: eric smitd p smith, th c.e.o. of google joins us to talk about google and educatn. i am plsed to have him here on this sta as we celebrate learng and teaching. welcome. >> thank you, charlie, thanks for havinge ongain. >> what was the origina mission for google? all the world's information, universally aessible and useful >> rose: how are weoing on that? (laughs) >> well, we've just started. i will tel you when you're 3 years old d state that's your min, you've got a lot of years ahead you and larry a sergei have long w togo in that. >> rose: what smart pson decided that rather than sellg thtechnology, we'll just sell advertising. >> wl, the initial attempts didn't work because ty heard no, no, a no. meanile the money is kind of running out and they're getng
ki of nervous. so they ce up with a simple adverting model whichomeone of t engineers invented that woed pretty well. and themall team at theime managed get a couple of deals. when i showedp,hatroduct was fixed inprice. and the.. google had invented a dynamic systemhat ultitely became our productalled add ware and i rember walking to the very young pgram manager who looked to me to be about 21 years old, i had justjoined d i said "promise me our revenues are not going to go down by a factorf when yourrilliant w product comes out." he said "it's going to go u by a factor ofen." i sa no,nd deed he was right. >> rose: and advertising isnow, what, 9 20% of the revenue? >> 9%. >> rose: 98%! we are an advertising company yocan think of gg as two pas of a cpany. you n think of it a user phomena and our primary focus is end users and solving their needs. and you can also think of it as a siness, in which case it'
advertising business. >> rose: google does many things. searchinis its primary thing but you've created e-mail ogle news. >> we start off with search d the ear founding team, larry and serg invented the adrtising model which has done so well for us. on april first of 2004 we introduced our first appcation which was fald g mail. at t time people thought it was an april fool's joke. weort of played with that,ut it was pt of our character. today we sayur sategys search, ad, and apps. >> rose:search... >> ads and apps. and applications that make your life better. and we have the abily mow because you have smany people using gole to really change the way they use computers and the wa this terial... the term of art is now called cloud computing. and thidea is to let the comper take care of all t details. you just use it, it's always there, google or someone else kes the information,we don't lose it,we don't brk it, it
doesn't get viruses, that sort of thing. >> rose: applications, you have this thing a google where you can take a day off of each wee 20% of the... your time, out of 100%, five days, one dayned you canork on anything you want to. w much of that has led to interesting, productive, profable application >> wethink the 20% time is real the only way we've been ab to maintain our innation ase've gotten larger. what normally happens with technology cpanies is the initial founding team gets older yore bringing in traditional management and althoh it becomes a better naged company muchf the creativity and the flair and the jaw devefets lostn the procs. byccomplishing the principal that engineers could end 20% of their time working on whatever ty found sbrsing, we created culture where there's this constant flow of innotion. literally everydayhere's
another fun surprise before we get excited about t 20% time, ese are engineers, th don't var that fafrom their ar of interest. >> rose: ty're not finding a cure for cancer. >> bthe way, if they did, we'd be very excitedabout it. but wh they're really doings th're saying in my space i see all of theseew technologies and there's a new prlem i see that i want to apply this stuff to. that's how the innovation rks. rose: youtube has be fueled by use generated. what people did with their cameras. how much of a phenomenon nonis that going to be in th future of the internet? >> w think it will be one of e most defingspects of the internet because if u think about it, everydy has phones. and ery phone has atill camera and eve one of those phones is going to have a mie camera prettyoon. and, indeed, if you think about it, a t of the ns that you see, you'll see some phone camera video of low qlity. well, five years from now, those will be very higquality videos as the technologyets betr.
e joke is tha the vast majority ofphotographs now takenre kept in people's phones because thecan't get them out of them. (laughter) >>ose: (laughs) they can take a picture but hay don't know what to do with it. >> so we're worng to solve thosproblems. the imrtant thing here is that the phenomena of news gerated content, of which youtube is an exple is, i think, the definingxpression of humanity over the next ten 20 years. we had no idea tt all these thgs were going on because the was no way to see them. noyou have someone w's being tan advantage of or abused or put an inappropriate position or what have you, they can take a picture. th can record what the police are doing. there's a lot of imications. >> rose: spe to that. >> the most interesting tng to me is transparency how you ke societies honest. an we've now bause of the internet and digal revolutio given pele... we've essentlly given them the ability to see everying. so you can now take otographs, take veos, o everything you see inour world.
and pele discover it. and there are who communities of people who a interested i ese kinds of aspects and they serve as a form of checknd balance on the powerful the rich, the ople who might exploit others it doesn't necessaly mean f different outcome but it means that everybo can't hide. they have to acally tell the truth. to me that's great ste forward. >>ose: how would it affect politics? >> well, the are many way. today if you talk to politicians... a simple ory is that in 2006 the hse went democrat. the senate wt democratic because of race in virginia which involvedn unfortunate video on youtube of a repuican candidate losing to a democratic candidate. and on the docratic side there was anher exale, there was a video of one of the congressional pele involved in the abscam scandal, whi many people had forgotten. yet th videorought back tho memories and affecd the outcome of a democratic race. it an equal opportunity technology.
the important point her the important point here is that politicians today are we aware of youtube and its phenomena and they're more careful. and being more careful is probably good because if... indeedf they are going off and saying this to small audiences and then going tood audience and ying something very different, i want to know a viewer. ere many things as you can imagine in the fute. th one i like t most is the politicians b.s. dettor. basicallgoogle is sitting there and the politician says sothing and you can type it in and it says whether it's true or lse. >> rose: it so has this ramification, too. there are people on the internet now who may have information,if they know something isoing on, an investition by a jourlistic organization, it can hold them accountable, too. cause somebody may have informatn that some facts used in the journalist's rort were not true becausthey have better information or they have information that conadicts. what happens as a result is it's very difficult now to use
completely false statements to inflame the public. you can take the facts andou can twist them in the way that yosee fit, but your facts have to be right. that probably a big improvement in vernance. >> rose: mobile devices will play wt role in the future, sort of evolution of thnology? >> ty're pthe robay st important of all. todaeveryone here in the audience has aobile phone. it's theast thing you wld leave anywhere, that phe has a g.p.s., knows whereit is. the powerful mobil phones have powerful browser, they have cames, as we discussed before. you cado a lot with them. st forward a f years from now wi the content and the capabilityf that with the new generation of applicaons. we expect eventlly that the majority of use of the internet will be on mile phone mobile phonesage is grong faster than personal comters. there aremany more o them, on the orr of fourillion in the world. in our letime the majority of
people-- at least fiveillion, maybe fivend a half billion will have mobile phones. rose: the expotenal growth in countries like china and dia andmerging markets, as they're called, even though they pretty much emergedather well, extraordinary. millions permonth. >> in our lifetime wee going from almost none being able to communicate tolmost everyone being able to cmunicate. we're als going from almost no one havi informs and access to libraries to virtually each having access to every piece of inrmation in the world. that'sn enoous accomplishment for humanity. >> it bngs me tosome of the here.that might be relevant number one, in termsof right and all of tt, you ys would like to have every author o every book er blished make it available through goog. fair enough? >> that's rit. d fuher more we want them compensated. d we've entered io an agreement that we hope will b approved by a court of book publisrs and authors where esseially rights holders will register and ty will get essentially a commission a a payment for the use of their
work if it's printed on a eltronic basis. we hopthat in thiodel peopil be comfortable, that if people findhe book, they'll buy itnline either text form or they'll go t amazonor something like that and purchase the book. in which case the author wil alsoe happy. >> rose: ty'll put it on their kind or what have yo it's worth noting, by the way, if you imagine theower of these mobile devic over a five or ten year period, they shou be possible to do almost evything that we do today wit her means. it should be possible read books very wlon those vices. ke it as fast as ading a maga it should be psible to watc visionnd watch your show routinely on these devicest very high quality. the technology is just getting there. d when that occurs, it's a differt experience beuse it's a personal experience. when iurn on the tevision, it showshe same showshat i saw yesterday and i watch tm anit doesn't know that watched them yesterday. what a foolish televisn!
why is it notmarter? rose: what are y going to do about tha >>n our case we're building content op to do moreallow the taeted ntent. so you canmagine the mobile device wl say, wl, eric, you wahed this episode of this televisionhow, we'll off you this other one. welldidn't youforget that y ready watched that epode of "charlie rose"? you should wch this oer one yo liked.s reled thene this personal viewing experience is a fundamental tng that the internet c do and mpanies liking into kl do. >> ros but that's also key to the advertising, too. >> ocourse. rose: that's why you ys got so rich is that wheneople... whatev you were searching for a link to what y're interested in and youcould therefore pinpoint products that might appeal to you. >> that's ght. >> rose: how much of is xt rather than video? >> well, today it's... the vas majority of is text. 95%. those xtds that yo seen your search rests are very, very lucrative. it's a great biness to be in. >> rose: here is the question that everybody asks in
technology today, not anybody at google but if u do what i do and if you do what people w have content dond if you do what youtube doe how do you moneze it? i mean,it's a hugproblem. not a problem, challenge. challenge. as rahm anueys, we see every crisis as an opportuni. there's a challenge find ways monete it. yof you pduce content. if you make it free, you don't general rate a lotf reven. >> rose: so what's the awer to monetization, cause it affts youte, one of your companies. >> on user-nerad con a t very hard to show an adexto many of the stuff and many adrter wouldn' wt be ne of that sff. e:hat's a problem, isn it? tt's a problem. so here's mod for you. for thgs which are ing be viewy tw b iopladvertements and yollse, in the caseof youtube, you'll useideos around the side, you'leads
at t bottom, y deal ece-ond ll orost-ro. an l tho experiments e being triedt. wotube youonty sa ofhat is halfway. wee not whweere need to but wee muc far along. rose:e al nets like myspaceom and facebook. thave the same problem the argument i made that the re in at tre on faceok are iren are doin there not interested in s because they're t searchi foroduc. or informati. >> but thadenies the ndental progress of vation. there absolutely wl be lutifor at, we st haven't invented them yet. we're still woraiting the o he insights. butit'sbvious.... >> re: we got se google boy girls out there at w on this as we sak. >> you can't sor of tel tm. it has occnatully through e botto-up pcess. so 're waiti know it wl comeec ime g spe know we can u that tim for
somem of ainmentert adrtising,ome kinf immersve experiee. anotheway to thi abo en if youaudienceis twolion bil you use verting. lite ls than that. (laughte >>ell, in a smallaudience, say some numbe, 0illion kind ofne audie t milli auence, you c imaginehat u'll have micro paynts not vertisg. 'll c thnt, ce fivfor ew. thosand too and technues are beinvelod noin t industry a are likely tobe successful >> r tease about ws onhe edge, wt'sexciti about wherre going in te gl and o teno cpanieesil able tooor us or schmt. >> googl is first and foremost a srch engineand wik >> r right. >> sowhbody some types something today,hat i ea ping in the context thof
histy, their bk grown, wt ey k theelfystems soorth. if theyiveusermiio, we n usso of th tve them m aenforon. wherument a siton kingow street a ws yourmole dece andoug.p.s. why can't my phote been asking?ishou ave itnowsha i car about m a fa o history. walk dnhe s dsn'tf hy buildingo that i don't havto bother to type, ca justee it. agine the tuatiowherethe personthep.s., the dis constanteang as nartive s tertni. persona and hy cistces in which i would me abl to be the id that i woing ge reof ing quesons?t me canter) thadoday. ose:>> rikwhere were you.
e can thatlmost now with your calendar. because wenoho you're meeting. and if your calendar inse of google, itd shoulually pose for us to genere the qutions for eh omeho be aill be? when? aur) sho.uld be enneerare wo it. e ose: g ml. suppai u yse all of m ma. t atme don'ty pctic>> rose: wel. weavlechar up osu didn't like me. >>n ifweone yo, wo viate s. our >>os so,hat? (laugh ou're sayingtrt us"? rust . we're nogog sakook. we n ea ak. re: shen backobama was running for presint a he had a gil account-- i d know wheth he didorot-- dy was sing... to o knoedge e di nd tyha os ite. nd it's soossibley
havewod een guil fedes hadhey broken into a tt acco fae passrd. >> rose:o somodgets e passwordhe m glt of crime? >> rose: thegital divide. where e we,hewereule anwhy are there now? >> theoodews tha is we work in a thnology where psre impr aonstant price-reduction busine. omkemao id, thway how ney at all prices are so lo but the colry befishe plosion in digitalices peopleho could nev he imagineding these thing 0 years ago. e obvious exale bei t sami industry wher the comptoy. the orys gointo be mole pnes, t comeack to that. becae everyoneets a mobile phone. evenn the third wod-- and th's w exale ofhe digita divide-- you can build networks wherepl use s.m.s. searches aries and wo
at in thosmarkets. if you're a farmer dependg on the weatr forecast t que madetermine he you go bankruptr t with yr farm. t a to t phone?ugh? sorefo re farowmerskn en is going to rn? here are rouly a billion more possibl phon comi in onnee next three that ext billion ices are uaes whave never hear and weon't speak. we havno idewhth're to tell us but they're going to be heard. i think it's great. >> rose: thaiseshe stininrequestion about w lang do we u is englishhe standard for... are thehinese going to be the >>shepears thloba guagef commerce. on t iernet, chinese i growing mo quily as a language than... chinesend mandarpecifilly over ish? >> ros ishat? well, tre many
andincrsinglyhey have more ddlelass who h ce to technology. china of the interneichers u is more th the nberf use we have in t united states toy andthat animpoant mileste. thmany many, theroute arab 5li mobile pho users in c with, again, more many more chese people to co >>ose: the rate of gwth is era. >>es. >> rose: let'skoo five yea from n. lkaby e tngse've b t. it as goingat's eiting about we will be? et's do a ltleath. five y frwooreaw ubling e 1 mohs mea a >> y needto ein atit gorew. law which true tod tt...'s 's been originated the idea. ght strward but it didn. asito do with t
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gates' dream to put a computer onvery desin every home. his pl journe business ge. mother used money fr a garage sale to bye a le machine for the local sool. it igted her son for , but to h a tenical wizard isynlalf the picture warren buffettays of his go friend "i'm not compent juhis thnical abili,ut i rerdisusiness svys traordin" bilif had srted a hot dogand, e t dog kif the d, his relentless drive was ctil toll the rise ofrosoft the company deloped e dominant mputer operat the wod an breakthrou prra li microsoftice. rotis said micftrush antitrust lawsuitsrom u.s. and europeanegulators. today microsoft operates in over 10untries and has a marke capitalizaon of nrly0
ion. me consider bill gates tbe e greastn caper although hens remai chairt croft, he nowocus his on th foundion which has anndowment of a35 oke himnd we had a candidversation several dqeae wn seatt at the talk of a remarkle le in bu isiness a playno th is still g at sp ny..3ag , t a in ev home and onve desk. asou l3 yat, what's the missi? >> wlhe magice sof usat it can do. that original dream tha software wouldfromeing on biomg cters th oy big and was kind agasthe use,
invidual. it w ting you and you yunch card a the bill would be wrond maybe if you ststapled it crazy computer w nt bother ynymore. so we'vee omhat t vi tersonalut, til mass,av millio of thend cnectg themp leto al this infoation g publied. nowe hthe intern anazin array of software. so ts aar part of th nothat we have. hie're tully f achieng bout my abit to getmation and look at it upo pple, are n done here. in fac thet exciting thgs wl hpen nte takt > r t wn your office. day it's sitti t displayhat yocatouc mb inion arnd tko whe arabout,ngin
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otheguy. bu it'eally very s >> throanncdiblshif erthe nehoas a hawareevicd what youid d ma it wasprettyimed b ngmall and cap and lly favored hardware pertise. and so noa,motorola, ey did anamaz jobn that. noit's becing a software device. impoant t laofthe bais not whatakes i magic is shippi t t software. now y lookmo coaneicso,apple, google, rhs m,eeen more on thtwe value ded piece. and how does doth partn th the companies tt still d something wwhile but not t tonpeth now, that fair simple. they tthe playookhat they've alys hadand y ty dot fromt toinish.
th has certain advantages, its a isadvantages in tes ie al ternand l th ps yohave to innov in. but they've done a very job tha miost tas the mod that we've used wre workith e hardwaremanu cturers bud a deepartnsh p with the ssungs moras, we ysay,, wl dhe worktother on variy ofachines. is is a key a it is an area are going to beurprised by how mu better phone ge over these xt fivears and reill absolutely at the center of it. >>e: andin t game? >> well, we're songly in the game today. reing toe.on iwhat a the ose: wn video t internet andwhat pow aoten pal and w wins a w los? w wins and at all we can y foure. yoknow, there'sn aspectf this that i amque ined in right w,hich is thinng
about gettg the w's be sesnle so tha student whdon't have lot ofoney junect uand fore eye seeing thet courses. so teaer canlearn from ose coses. so if aeacher som hasody who's bend they canssn somef tse .lectes if a kid i ah ad ntsosee w app the work in some nt new area, theyan assignhose tngs. so video tally m tooving e internet. and there will be some sucription modelnd some adveising models but tre wi be lot o free stuff out there. it's still t har today in the ce of courses, -tfind what'sood. erlot of stuffhat's not out the but more d more i can point to a few tngs that provthe conce th we can get sothing outhere'sat magica and st using this foron t'sha hug impaful thing. th's the only thioing on, that would make it worthwhile.
but we not oy have that, we have enrtnment an movies anall types video. r of spent ou personal oice. and before we go to the foundation, what's that aut? because some people he said 's thecenter ofraf city for u. >>ell, m role at the strategies.s to he s i'not treunninghings day i come to the oer office to re, to tnk. now, they get a lot of e-mail from me. u thw that i'm in there iting lotsfe-mail but i di't want have my onlyfficee and i want stove a place where microsoft peopleould com and visit me or somf these scnce projectshat may apply to the foundatio or may not so it's worke o verywell. it kind n theiddl and i tother o ces easivery.
rose: mark and seine is here. he's one of sicone mo respd entreeneurs. he founded and sold two companies, each for over a billion dollars. the first was netscape, it revolutioniz web browsing before it was sd to a.l. 1999. his second company wasbrought bytt-pacrdn007e s two new ventes, the social networkiight ng and a brand new venture cital fund. am pleased to hav him backn is show. welcome. >> thank you. rose: theres sor this ofat sillea i the fac next google and google is the next microsoft. yove heard that. do a of it reso with you? >> i don't think there a nexts. ke so for example there was i.b.m. a people who said w's the next i.m.? and there never was the next i.b.m. googa tall different businessfr microsoft. google's its own comny. it's a fantastic companyit's
itown company with it own mode facebook is a fantastical successful cpany with potential. google is aye ganally successf b foanybody oluntarily step and compare themselves to that would be hubris. i thk that wou be a bit much in genal. but facebook has hug pontia and ithink it deserves to be evalted on its own. >> rose: it' evaluated at $15 billion. >>elrehe annvestmt round.... >> ros the microsoft instment? >>nd somether investors. peoplere getting confused on that becausehat tt' preferred stock. erane was s assesent of valuation that opleave rumors abo that which was f mmon stock. so people are getting preferred and common confused. this is all abstra becse t mpany is private. somey the company will.... >> rose: and because the company is not makingnymoney. >> well... (laughs) theompany's financial are private so it gets to ke that to ielf. >> rose: (lahs) you're on thboard of dirtors inon be here and tell us very well.ernaloa it's doing it's st 175 million active
users. a lot of those users u it 50 times y. orehink it can revee inhe years come. >>ose:ve y rd this y. tune" has marked on the cover "how faceboo has ken over our livesbut is it aeal busine?" >> sure. i think ople k us abou new companies all the time. can monetize. but it has million active uss, it testixth populated untry in the world right no it's on its way to 0 milon users. >> rose:o what'soing to be the ick to monetiz it. >> this ishere peoplere gettin confused. cebook is delibately... this is very iesting >> rose: lot of confusion out ther lot of e kind oft rmal brand advertising a lot of web sites will take. so you go to a company like yahoo!, anotheran fstic business and ty have brand ads all over the place. facebook has made a decision not take a lotf that business in favor of building itswn more ornic busins model. it's the nil the process of doing that if they crack the code on that,
which i think we will, it will be very successful d large. the fallbackposition is just to take nmaldvertising and if facebook turned on the spigot fonormalwould venuoing aillion dollars in so it'ch more a mter of long-term strategy. >> ros so if i wanted t mak a loof money instantly, it cod. >> veryeasily. it cellould s thome page and ma a guy january tk amount of money. there's tremendous proten shl in it. 's sficant aboutat is the rket is very determined to build a long-term company. as y know,here areple peo who in the vley wholike quick hits a there are people who... andy gve for example or rehabilitate and think in his own way mark ahegoog guys are other examples who wt to burmsiness. so he's got his eyes on the horin. >> rose: so when others may have soldut to larger media companies, mar insied he would main independent and develop his own company in his n way. >> he had those tuing points presented to him. anyuccessl compy inhe valley has toecide etheor noto ke offers and he'spass
odon very luative ofrs sthup te me whathe big vision is. >> basically theay i wld ticulate is connect evebody on the planet.i mean, so 175 min ..people >> rf n't think large,hat the hell. >> exact. 17n people the thing now. adding hugumber of users everyday, six billion people on the planet. prably three billion with modern electrici and maybe telephones. so maybe the tal market is three llion people. 17llto t billion a big chaenge. a big opportunity. >> rose:et me remind you, u're in the busine of social networking. that's what ning is all about. >> my own company ning is about to cross t million users. ining is a bess that le you cre your own social network. >> so if you want to create a socialetworks among yo high school chums, u n do that? >> y can do that. it easy, is free. thers all kinds of ways we makeoney on that myspaccooing weis d for corp.
linked in is anothecompany i'm an investor in that s 20 million resus ont. everyby uses linked in to look for jobs and recruhich is a hot topic tse days. >>ose: i would assume so. so social networking ihere to nd i potalis jus beginng. because if you can connect everybody, you hava hu portunity to the a bun of stuff. >> hers the thing. if you can get 50 or 0 million people to do somethi, over time you'll get everybodyto do it. >> re: heo politics! >> ectly so there's hug potential, huge upside. >> rose: the obama campaign volutionized politics, didn' it? >> excelnt example. the obama campaign by the most aggressivese of state-ofhe-art approaches and philosophies. wrimarily that was harnessed inhe f oormndaising. itas an engine to jeb rate gigantic numbers campaign contributions. we have a lot of politicians creating networks ini. there will be aewwave of...
and thbama campaig was very good for voluner coordation. but there's aholeaspectf how e debates haen and communicatio happens which is yet toome and that will i 'ñ or 'ñ16. pa of facook ng over ourther lives. not so good. >>bvious i don't think that's thease. so erything on facebook isput on facookr any of e these other ghts, ng linked in rose: you don't denysome employergo first to facebook d if they see somethg they don't like they may not hire somebody. >> people will check do google searchesut it's e her way around. if you're an employe, you learn a lot about the company you are going to work r. >> rcontrojust the ideaf who owns the users' profile. >> yeah. so there was confusn. facebook putut a new release their terms ofervice and it was legalese and it caused confusion and ma announce they're reverting to the prevus vsion andthey'll
writnew dont which in english. >>ose: let's talk about mobil for a secondbecause you said some ieresting things abo cellhones and mobile. ere was a big meeti in spain barcela and somewhere, right? did you go to that? >> no, i didn't. i read abo it oine. rose: so didt. wll me outtutame of that. the big thing is mobile has arrived. you ve these technolog transit peop talk about and talk about and they never quite happen and then suddenly they happen. thinternet was like that. took off in '94, '95. th intert had been gettg built for 5 years. it took off '95. >> re: because of you the technology of the browser but the browser became posble cause of the windows interface windows and mcintosh user interfac came in street. souddenly tmaet takes off. so now you have the 3g tworks, supersophiicated hansets, application devepers, conten th stuff is just catalyandzed gone boom. here inhe u.s. with see it with the iphone. nothe iphone is a templat that ery other technolo
vendor is going to copy be id rose: explain that. >>o the iphon is the first true cell phoneat is actually a full computer. it has a ful operating system. has the ability to support a pplicatis. it has a software development kit you n eto build applatns. ha as way toistribute applications over the network on the phone. >> rose: it's newenture for people torovide applications for the iphone. os>> r >> exactly. >> rose: it's a b venture capitabusiness. >> the trereusands of iphone apicatnsuiltthe in st somef thre med yoarge mey for. thers enormousdiversity of a ligations. so whether your a doctor reviewing x-rays or a kid listeng to musing or a facebook application or ning apication, it can doanything. so it's a full computer. that'she first te somebody s successfully delivered tha product with the fast at&t 3g network. >> rose: what was so different about the iphe that made it sort of a game changer? >> i woulday two things. ones it's the first real operating system. i saythat's sort of a...ounds
e a chnicaloncept but it st fir operating stem that makes a lot of applications possible. there's a whole bch of technical details >> rose: operatingsystem within a phone. >> it's unix. the same operating sysm that runs banks a airlines shrunk down to nning the phone. that's theriof wha ape di then packe it had who thing tother including the tool kitto build the apications and to diribute e applicatis on to the phe. that had nevereen done before. you coulhave bought a microft phone or rim phone or whatever and they never had it put together so somody could builan application, distrite it, sel it. >> rose: you have id that iphones are the darcation point between operating system and the otr problem we d is that the were soany different standards. >> right, right. >> rose: in americ unlike europe. so they t... and they got a huge... >> they had a big advantage. so building propetary systems, they had a big advantage becau theyad a single netwk. in the u.s., the netwos have consolidate sod there's a much smalr numbers. now the iphone acentnt
for aevelop you can rely on the iphone. now that thephone is success, mcintosh paves the way fore et is mmicroft or oaaves eate new devices. >> you are one of the people who rally do-- and i tnk thi is enormous to give credit-- to bill gates for developing a operating system thawas a standard and thing happened because of that. >>s a bigl. at's aery bi deal and a seris ctmenommifor compy. apple has the commitment microsoft has the commitment. it's a cmitment to backward compatibility. you have to commit to nev break anything. so you load up windows vis and you can run still the original frars 30 ye ago which was t n thp. and so that is a long-term institution al commitmen that takes a serious company to be able to do. then the opportuties... netscape was an apication that got built on that platform. the mcintos is that, t iphone
is that. it's ansibity for th next set of vendors do that. >> iead that micsoft has an operating systemhat they'... a mobile operating system that they are now gng to wk with l.g. and a wholeew phone. other pele will be doing that. >>hey'reoing a rethink. ey've haa mobile sat r years and had a within doze mobi. they'rdoing a rethink because theye se the iphone. the iphone is like >> rose: they're doing a rethink because th saw google, too. (laughs) >> another good reason to do a thin the iphones beamed fro the future. the honehen it lande was am in from fi yea in th future. it itself is fantast and it has inspid creative thinking around it that we'llee the results from the nt two or three or fou years. saung is very seous about this, nokia is serious about this. a lot of soware delo... nings serus about it facebook and gooe is as wl. so there will be a tremendous nt oamou innovation and a lot of people usingit. >> rose: tell me about twter. u're invested in that, too.
>> exaly. i'm an angel invtor in that. that's exactly kind of thi weant to do in thefunds. >> re: is it making any money? >> (laughs) not yet. not yet. tually i believe twitter's current renumay be zo. unlike facebook. >> rose: explain what twitter is and why everybody's tal at it. wite>>o i a kind of meaging system or sort of a sort of a combinaon of an s.m.s.-- shortessages and a ttle like blogging. basically peoplecan postrom their p.c. keyboard or cel on they c st short updates and itits the upso 0 karg characters. when you go to the twitte home paget says whatre you doing and you type in 140 characters and it ss that. you canescribe onwitter to people you're following d they can be people who are friends o yours or peoplyou don'know. foexampl you could have a twieryo don alady-- that has a notificatif the guesn eachho aw a link to t video. e thing is growing like wildfi. >> r knoose: i. is it'smazinging. >> so it percolated along for a
ar and it took and the last two or threest'onth growing verticly. it cane used for news. there's whole a.p.i..... >> rose: as long as you can keep it within140 cracters. >> you can do aeadline and nk to a news artle or veo. you can do notificatn... the other things...ealtimert >> rose: a quick sopsis and a link to a web site. >> a link to a quick video. then youan search. so youan see what's happening in reaime. so the next time there is a. ne time a plane lands o the hudson... this happed with the leane that landed thehudson, pere goingwitter updates. there can be pple on the cell phone ing twter up dates saying "i'm hoping ty got the rafts deployed." >> rose: "war mi in plane. whato o no" >> exactly. so it's a realtime electcroni ne for lots l shortessages be sent for alkinds of people to all kin of other peopl for all kin of uses. >> ros so loing back over the last 15years,hat's been
the big surprise forou? >> oh, well, so the biggest surpse by fa is at started outhis internet thing looked le an academic experint at first and turd into something that a billio and a half peoplare using today d it's change everybody's lives. and i don't thk. there's waon earth weeveranticipated that and i don't think the's any waat youou. yod have to be a megaloniac.... >> rose: so the power of e internet a the range of the internet and the impactn everything. yeah, the impt on erytng. it worked. it actuallyorked. it acally played ou and so... itlayed out through media, politics.g out through >> rose:hat from the strengths of the internet >>t's going the get bigger. the netrk effect. so t more people who use it, the more reon there is to put w things on the internet. it just keeps going. so everyday... tnk about what's hng. a friend of mine used call this the magi box. erydayou're on the internet there's sothing new to do that you're going t enjoy or like or will be relevt to you. everay. that will berue from now for the next 50 yrs, 100 years
unti some far point in t you have fure when we're all up in space. everyday itets better and bettnd ber ar. eryday adds aconsequence it eats different iustries, it colonizes a takes over different instries. >> rose: assess google for me. it may be obvious, but gohead. there were a lot of search 5.gines bere google, pbabl my friend bill j has a term where he ss sometimeroducts have the "it works" feature. >>os (laughs) yes. as compared to otherroducts that don't actlly work and our industry sometimes produces those prodts. the google seah engineas the fit one that wd. it really woed when you did a serge on it you got what y excted to see. d that was not te of the ones bore it. they nailed the core technology. an these are ph.d. students at computer science in stanfor theshe wit hard re technoly udts. th they built the service. and it was not obvious how they were going tmake money ont. rose: they had to find advertising.
>> at thbeginning they dn't ink advertising was vile cause it turne out adveising had not beeery effect i on e previous generationf search enges because nobody wanted to adrtise against bad srch results. when you have good search results, it turns out they were able to developand ovture was another companthat yahoo! boug that the idea crystalized. i think overte might have invented it and ggle adapted it. this idea that yououldo eted text key wordds against search resul. once they uocked that, a friendf mine from netape came their headf sales and helped them figurehat out. then they uncked a magic business, right? d abtnce every ten years in tech you e a magic business. magi isss oner thmarket it turns out is innite. so cis was a magic business, intel was a magic business, microsoft is a magic business amazon increasingly loo like it's a magic businesent when you have magic business you go fosize and scale. d they've done a fantastic job up andhaing having itbe guy january tick. >> let's raise another topic.
amazon at the tomb of the last bubble bursting, that w 2001, was i >> right. yeah. >> rose: you should know. >>h, yes, at was 2001. to my nd seco cpany pubcin 2001, which i would not recommend. >>. >> rose: i h smrt ople saying toe... and i've kwn ffbezos for a long time, smarpeople saying to me they're not going to make it. >> peoe had writtenim off. absolutely. he remembers tha by the way. >> rose:now i k he does (laugh heas not forgotten. i was at conferences where i saw smart sophisticated investors walking ouof his esentations shaking theihead. they thoht he was crazy. he was absolutel corct. he had the fortitude and the resight to sck with it and stick with it and stick with i and stick with it. and, y know, her pursued his core long-term vix, he did not give up, hean theompany himself pretty much continuoly. i think he h ac.e.o. for a brief perif time but then he me bin and r t coany all by himself. the brilliant fouer. along the wahe tried lot of friend ideas and some dn't
work and he got criticize and lot have word really wel now the hingeis jusonster. >> rose: so kindle reprents what >> oh, kin is gigaic. 'suge ness formazo a it's representative t futuref publishing. >> re: youw how many books thw one... i sure you'r getting e w one like i am. 1,500.book50 it'smaller than kindle on >> yeah. ah. >>ose: andou can get your nicipals and your mag steens. y >>ose: and y can do all nds of other things. don't ow yet because they're not shipping them untilebruary 4. >> yup. yup. everhi an the wedls new form factor,ht?ig yohave the hone with with the three or fr inch scree, you have to ltop or now the net ok with 12 or 14 in screen, right? w you have the kindle the seveinch screen. d so there's gng to be a e b t are going be s inch scree.
there's a bunch he market the kindlehad.ave oftake ros t kindleookff becae? because of the cell phon connection? >> cell phone conneion, they nailedhat. theoo is supercontentn y light. it uses electronic ink techlogy so it's easy on the ey. >> rose: and they try to make it feel like aook as muc as they can. the id of a boo, experience of a book. >> like thephone, they package the wholthintogether. but it pointstheto fur ere will be a whole generati of these pat. so let'suppo someday appl might make. thk about the iphonesce it up so it has a seven inch screen. think out how great th will be. >> re: do you thinthey will? of course they will. (laughs) >> i will the first person to buy one. i t . >> rose: thereny doubt that theyl do tha >> >> i don'tnow. >> rose: whyo you say i don't know? >> until they nounce it, i don'know. i don't kn. theye a very private company. i don't know >> rose:o kidding. >> sebody will gure it out. th kdle duds bks and mazines and newspapers but thator factor and spef devi and t weight will be
doing vide music, telepho, web browsing, it will beoing erything. and sothat the next... one o th fascinating things ishat's the next screen size and kler dece. >> rose:hank g i onl6. (laus) >> (laughs) you have a l of this t look forward to. captning sponsored by rose communications captiod media accessroup at cess.wgbh.org