Im scott mcgrew. I just met my guest and she seems like a very nice woman, but petition mccords idea how to make a company make me uneasy. She was in charge of hiring and firing people at netflix. She was key in making netflix the juggernaut it is today. Netflix was not a family and they quickly cut employees it no longer found useful, even those that helped create the company. Im quoting, hard work doesnt count. She estimates shes hired hundreds and has a new book called powerful building a culture of freedom and responsibility. Shes joined by laura of usa today and explain to me hard work doesnt count because my mom told me different. Hard work in itself doesnt count. I love your introduction. Pretty on the edge. It wasnt like we hired and fired no, you fired me after i worked hard on making the company big. Are you in the same job you had after college. No. No, youre not. You went place to place up the ladder. Up the ladder, around the ladder. What i advocate is honesty, how work really works, right . Sometimes you hire somebody to do a job and five years later theyve done it and they built something and its a wonderful thing. Its working fabulously. Usually those builders are not the maintainers. Im talking about being straightforward and honest. I love being the queen of the good goodbye because so many people do it badly. In the Silicon ValleyLegacy Companies are going through huge shifts that involves thousands or tens of thousands of layoffs. They say, we need to get into this, cloud computing, streaming or whatever. But i think some of the Older Workers will say, this is just sort of masking, pushing out Older Workers. Even from a companys perspective, if you have the best of intentions of trying to bring in new skill sets, how do you do that without falling acting in an ageist manner . Let me comment on two things you said. One of the reasons why i wanted to have an agile workforce where we could be selective about who was on the right team at the right time to do the right thing is when you do that and you do it as the Company Evolves and grows, you dont end up with masillaeoffs because you dont carry a bunch of people until their skill set is dead. Anybody in Silicon Valley, especially in technology, knows from day one, youve got to keep up with it. It evolves all the time. Ive been here 35 years so ive seen this movie lots and lots of times. I do think theres pain in that. I also think theres going to be a really nice synergy i hate this word between the evil millenials and aging boomers. Young people make me feel younger and im working all the time. I think the way we work is going to be different. Your notion of, im an older worker, ive been here for ten years. The company owes me another ten because im not ready to retire. Thats just not realistic. Thats what happens is then it ends up in masillaeoillamasills. Own your career. Think about how you might want to work when youre farther along in your career. Im consulting now. Im having a blast. I love netflix. I spent 14 years there, but this is really fun, too. Theres lots of different ways to work. I think what i want to sell is the notion that the company owes you 30 years of service because its not true, hasnt been true for a long time. In this corporate environment, are people just living in constant fear . Is it a healthy environment for workers to think i could be axed at any moment . Its not like that, right . I know that is the takeaway and i know people want to put a lot of emotion into the terminology. Theres a whole chapter in the book i use around the words, youre leaving, like youre fired. Theres no guns, theres no blood. When you say things like that you make the person, whos done a fabulous job and totally contributed and is no longer needed, feel ashamed. What i want to talk about is i think its heartless and cruel that if youve done a great job, youve contributed enormously, youve finished up what weve hired you to do, were doing streaming, that i dont now put you on a Performance Improvement plan to improve youre i think wh incompetent, when youre not. Thats heart sxls cruel. We say, what are you going to do with the rest of your career . Where should you go . How do you leverage your time here. At netflix at the beginning, what i wanted to do, its in the book, i wanted to create a Great Company to be from because im a Silicon Valley recruiter and i know what makes your company great. Before you put it in the book you had a powerpoint you would show the netflix employees and became famous. They called it one of the most Important Documents to ever come out of Silicon Valley where you espouse this idea. We are not a family. We are a team. And i think the good analogy is baseball. At some times you have good pitchers, not enough hitters. You have to lose a pitcher. It has nothing to do with his ability to pitch. Since ive been at netflix weve been on stage with awardwinning coaches. Ive learned more from them than any management book ive ever read. So the netflix culture did dispel a couple of mityths abou that. I didnt write it. We wrote it in collaboration thats the powerpoint . The powerpoint. We used it as an internal document for ten years. We wanted to do because were a company full of Silicon Valley geeks. You know how they work. A geek is a digital person. Good or bad, right or wrong, black or white, zero or one. Right . Anything in between, any nuances is a lie, right . What we wanted to do is say, we want to write this down and tell you truthfully what happened. Now, there is the point, though, i get the pitcher analogy, but there is the point i want to say, patty, remember when i stayed until 4 00 a. M. Holding two wires to keep serviceon line while you went to radio shack, does that not count for something. Sure it does. But youre firing me im sorry, sending me off to better opportunities or whatever it is. Yeah, not firing me. But what about the time i held the wires together. But the wires are soldered. You were the best wireholder we ever had. Nobody ever touched you in the holding of wires. I want to ask you, really, do you want to continue to hold two wires together for the rest of your life . No. No, you do not. But you were good at that. Now that youve built this machine that you operate, you leverage that. You just fired me and i feel so good about it. I got interviewed by someone from new zealand and he said, sock me on air, patty. It was one of my favorite. I like you. We have to go to break. Stig around and well tell our viewers well put more online. I didnt get all of my questions. If youre watching on television, up next that chill you feel when you realize hackers are calling from inside your refrigerator. When press here returns. Welcome back to press here. The biggest threat, the refrigerator. In the nbc break room poses is that tuna fish sandwich no one is claiming. Its time to own up and get your sandwich out. Dont eat it. Our refribgerator is not connected to the internet. If it were, it would be a problem. Internetconnected refrigerators are one way hackers are breaking into systems. Ceo of dark trace, shes watched hackers try to break into internet connected cappuccino machines, vending machines and even smart light bulbs. The refrigerator is a true thing. Someone told you a clients refrigerator was being attacked. It was a large fast food chain and they had over 1,000 stores. In ten stores they were testing a new internetconnected refrigeration system and we could see the hacker scanning the system, finding these refrigerator and they could have changed the temperature, spoiling the food and creating a mass health zooish even if they didnt get into the rest of the network, when they could have done. They could have done a tremendous amount of damage. Thats right. Another great example is we had a casino that had deployed dark traces technology. Inside the casino they had a massive fish tank. It had an internetconnected thermostat. And the attacker just scanned the network looking for unprotected internet devices and they found the thermostat. What they were able to do is from that thermostat, they started looking for the high roller database. In the casino, those are the crown jewels. They were able to locate part of that and they started to pull across the network, out the thermostat to go to the cloud. No our case, what dark trace does is we were able to use Artificial Intelligence to detect thats not normal. The fish tank shouldnt be finding the high roller database. Whales, whales, whales in fish tanks. Thats right. Were able to spot those, even though theyre unexpected and stop it in their tracks. Should companies have these internetenabled things, though . I understand the value of being able to look up the temperature of the refrigerator, but it sounds too dangerous. When you look at the evolution of connected devices and the ces event just happened recently and the buzz was all connected devices and Artificial Intelligence. I think its inevitable. Theres everything from internetconnected lighting systems, heating and air conditioning systems, its just across the board. So, i think those are just a way of life. And there are ways to be able to protect them. Thats the good news. Well, after the big was it the mari botnet, they came in through the dvds, people woke up to the idea that you could be hacked. But now its complicated for a consumer, i think its like reset your routers password and this whole trail of how to how realistic is that . I mean, most households are not going to sign up for dark trace or maybe you have a Consumer Product coming along. It seems a little like the horse has already left the barn on this and whats the best advice for everybodys, you know, all these households out there sitting on these devices. Well, samsung did actually invest in dark trace about a year ago. Part of the reason for that was they knew this was going to be the future where Consumer Devices and Smart Devices were going to go. And so it is possible that at some point this type of approach that we use could help protect even Consumer Devices, but were seeing we saw this in 2018, where it impacts not only the consumer, businesses, and even impacts industrial control systems. Users also internet connected devices in alternative energy, medical devices and hospitals is another great example. So, it does impact really every sector out there. Youre, in fact, protecting an ultrasound company as well. Thats right. Theres a Bay Area Company called qt ultrasound, and they have a next generation kind of mammogram that uses ultrasound. It reduces the false positives. And they recently got fda approval. And they used dark trace to protect it. When you think about it, its like what are they really trying to protect. Theres two things. This is very common for all Silicon Valley startups. One is intellectual property. How do you protect the i. T. Thats at the heart of the value of the company. The second thing, of course, is patient data. How do you protect the data when its being transferred over the internet from this connected ultrasound machine to the radiation laboratory. Those are the two things were protecting against. Whats nice about this is we didnt know anything about this particular device. It was brandnew to the marketplace. We use an approach, and while we all have skin, occasionally a virus or bacteria gets inside. We have an immune system that finds out the bacteria is not normal, its not part of us and we have a precise, Rapid Response to it. One more question. Yeah. I was going to say, i think its still pretty early days for Consumer Devices to be even if somebody buys a refrigerator that can connect to the internet, they usually dont do that, but one question i get asked a lot from people is who are interested in, like, the amazon echoes and googles, how hackable are those devices . People are really concerned that somebodys just going to eavesdrop in on their living room system. Those voiceactivated devices so far, even though the Hacker Community has done quite a bit of work and research, they still have not been hacked into to date. However, we have seen similar devices with microphones. One example is there was a Video Conferencing piece of equipment that was in a law firm. And it happened to be during very sensitive merger and acquisition discussions. The attacker, i think, probably knew what they were targeting. They targeted the video con equipment in one Conference Room but they didnt turn on the video. They only turned on the microphone. They listened and they recorded. And i dont know eventually what their purpose was, was it to leak the information . Was it for their own financial gain . Again, we were able to detect it because it was unusual. And we had no idea. In many cases, you dont know really what the attack victim is going to be or how they can come after you. Weve seen it with video con equipment, telephone systems. Playing internet whackamole with Internet Security from dark trace. Thank you for being with us. Press here will be right back. Will eventually impact evey driver in california. The new requirement we ll all have to meet. Plus a it looks like we ll hava wet work week ahead. Kari tracks any changes to the forecast. Join us monday morning from 4 30 to 7. Welcome back to press here. Theres a thing on the internet called muk bang, and its a broadcast of people eating. Almost always pretty girls. Eating a lot of food. This would be just one of those sort of weird things on the internet, except these girls are making a lot of money doing it. Here in the states, its very popular to watch people play video games. Live broadcasts of someone else playing xbox. The audiences can range from a few dozen to tens of thousands. Neither a pretty girl or playing video games, but hes part of streamlabs which helps Company Stream video and star getting money. Streamlabs processed around 100 million in payments to streamers last year alone. Thank you for being with us this morning, ali moiz. Are they advertising to their streamers . Where is the money coming from . Thanks for having me. Im not pretty, im not a girl, but mostly behind the scenes. The money is coming from the fans. The fans but why . Why are they giving money . Just the entertainment value like are they being advertised to . Ill tell you the secret. Streamers tell their fans, support me by giving me money. Thats what the rest of the world thinks is happening. Whats really happening is fans feel like theyre supporting their favorite streamer but theyre also getting their name and recognition up on stream. So, imagine you have the show here, how much would a viewer pay to get a question up on screen or to get laura or mark to ask a question that they have from a guest . Is it worth 1 . 5 . 10 . Somebody out there will pay 1,000. I guarantee you our Business Developer is writing this down. They pay and the money goes through you and you issue a paycheck . Tell me about the mechanics of that. Its really simple. Viewers go online to a web page, like a website that host the streamer they set up and operate. They pay with their credit card or paypal and the money directly goes into their bank account or paypal. We dont keep any fees on it. And, you know, the fans are paying their favorite streamers or celebrities or people eating ramen or cute girls or people playing video games. Its a huge phenomenon. Theres a funny south park episode where randy is talking to his son stan and he says, back in my it day we used to play video games and the kids are like, well, dad, now we just watch other kids play video games. So, the world is changing. You know, i think whats happening in asia is a huge sort of sign of whats going to happen here in a few years. Live streaming started off in games there ten years ago, 15 years ago and its big here now. But its also moved beyond games now. In asia. So, those girls eating ramen, girls Walking Around shopping, streaming from your phone just Walking Around doing things in the railroad is bigger than game streaming here and i think its going to happen here in a few years. So, it sounds like this is a what has made the youtube creator so phenomenal breakout successes, the local pulse of the world. I mean, is amazon twitch positioning itself to be just as big as youtube in that department . Weve seen this big fight between amazon and youtube over what can go on what device so, perhaps, giving amazon some more leverage in that department . Absolutely. I think thats the bigger prize that theyre all fighting over. Its not just amazons twitch and youtube. Our platform supports, you know, multiple social media platforms. Twitch is the big one. Twitch is the big one here, yes, in the west. Theres four companies in china that are as big or bigger than twitch. Theres multiple ones that are nongaming related that are as big or larger in the rest of the world. But here the two big ones, like you said, are youtube and twitch. Certainly Live Streaming is a vector to try to capture a part of the broader online Video Markets and to be fair, recording video is larger than Live Streaming. Theyre fighting it out. We publish quarterly reports and we crack market share and twitch is still very much the market leader. Somewhere around 60 , 70 of the market in terms of active streamers. We have over 700,000 active channels on our platform and twitch is still very much the market indicator. About 90 of these transactions of which we processed 100 million last year are on twitch today. You said you dont take any fees. How do you guys make money . You have your own tipping page on there . You know, for a long time we did. That was interesting but you cant really pay people doing that. This is coming out of asia, but we charge a little bit extra for added features. So, if im sending five bucks to scott because his show is great and its awesome, i can pay a little extra on top of that to add emotes or funny cartoons or glitter or hearts or did you ever think what was your job before being ceo of streamlabs . Ive been an entrepreneur all my life. I had another gaming company. Did you think you would be selling online glitter and processing 100 million in transactions to sell online glitter . I did not. I cant even explain this to my parents. They dont get it. I did not. And the way i try explain it to them, its like its a new form of television. Thats what it is. Weve all seen jeopardy right . Now theres a Live Streaming version of jeopardy thats as or more popular called hq trivia. I played it today. Its blowing up. Top of the charts on the app store. I feel like this is what all the kids are watching. The millenials are spending more time on youtube than television. I havent had cable for ten years now and theyre spending more time on twitch, spending more time on youtube, any online video. This is really a new form of television. Its an interesting analogy. Going back to early 1900s when they invented going from radio to tv, the first tv show were actually two radio show hosts talking to each other. It was just radio on television. It was just radio on television. Because they didnt know what was possible with the new format. I have thats all the show time i have but i want to ask you a quick question. If i wanted to stream, whats genre make the most money . Im streaming, drink soup . Play video games . Be who you are and do the same thing there that youre doing here and just be yourself. Bring Live Streaming dog show. This is fantastic. I got fired by patty mccord and receipt nude by ali moiz with streamlabs. Thank you very much. Welcome back. At the top of the show we were talking about internet broadcast at pressheretv. Com. Thank you to my guests and thank you for making us part of your sunday morning. It may be a laidback sunday in d. C. , but the nhls Metro Division is as jammed as a rush hour commute. The caps are first in the division led by the generations most prolific goal scorer. But today Alex Ovechkin is on the verge of a different milestone sitting on 499 career assists. The current nhl assists leader is jake voracek with 45. His flyers are sixth but have climbed to within eight of the capitals with a game in hand. Todays metro stop is