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Media asset must be dumping out. Im just getting my pants on. The Network Needs reporters on the ground in afghanistan. You folks are all of the unmarried personnel in the bureau. Are you going to be joining in . The travel, or the crying . How many people do you need . He says, welcome to afghanistan. This is where the foreign reporters live. Welcome to the fun house. My god, its so nice to have another woman in the house. In afghanistan, you are seriously hot. In new york, youre like a six or seven, here you are like a nine, borderline 10. What are you, like a 15 . Yeah. This is an extreme environment. I have seen people with Actual Experience make bad decisions here. You should let me interview you. I do not know you. How can we get to know each other. [laughter] excellent. It is bananas. I dont think i can do this. We are all here for a reason . I wanted out of my job. I wanted out of my mildlydepressive boyfriend. What are we doing . I wanted to blow things up. That is the most american, whitelady story i have ever heard. I need a story. I need to get something on the air. That is too dangerous. I think that would be great, that kind of exposure. Pretty great for you, too. Get some. Last night. What happened . The usual. Kabul happened. Today kabuls first licensed female driver hits the road. That sucks for women. Charlie joining me is tina fey, screenwriter robert carlock, and one of the producers, lorne michaels. I am pleased to have all of them here. How did this get started . Tina im almost embarrassed to admit that i became aware of the book because someone forwarded me that times review in which they said kim barker presents herself almost as a tina feylike character. Then i got the book. Your first book. [laughter] tina and then i had somebody read it to me. The book was really good and really funny and interesting and wellwritten and wellobserved and about a woman having these darkly comic experiences. Charlie did you turn to robert . Tina i went to lorne first, and said, i think this might be a movie. Charlie what did you say, wise man . [laughter] lorne i said i knew a studio i knew that paramount was looking for a taliban comedy. [laughter] charlie they called you up and said, i need a taliban comedy. Tina we have to beat ben stiller to this. Charlie so you bought the book rights . Tina i knew that robert was the only person smart enough to do all the research necessary, not only to adapt the book, but about the research about the military and afghan culture and all the things that were required of this adaptation. Charlie and you like kim barker . Tina i do. She is smart. Charlie you changed it to kim baker. Tina yeah. Budget cuts. We could not afford the r. Lorne all the money is on the screen. Charlie what does that mean . Robert whiskey tango foxtrot. Charlie this is like a writing session at snl . Tina like this, but 16 hours. And eventually there is a fistfight. Charley and more coffee, and what else . Charlie is it a comedy . Is it a drama . Is it history . Lorne i think that before things were just sold as comedies or just as action pictures. When i was very young we saw the movie m. A. S. H. And i dont know how you would describe it. Whether it was a comedy, a drama, whatever. It is good. I think this is good too. Charlie you went to new mexico to make it. And the cast lorne incredible. Tina Billy Bob Thornton playing the general, Martin Freeman playing a scottish photographer, and Margot Robbie plays an idol. Charley she is 15, and you are 10. Tina that is generous, by the way, having seen her at the oscars. She is a 20. Charlie rose did you watch mash when you are writing this russian mark when you are writing this . Robert i watched m. A. S. H. Looking for permission. To do the kind of movie lorne is talking about. Kims book has given a lot of freedom to save these are People Living in unusual circumstances but funny things happen. They still say funny things. Charlie rose especially in those circumstances. Lorne you want to get the tone right. You want the people who lived it to like the movie, and say thats the way it was. , charlie have you heard from people who lived it . Lorne yeah, tina kims friends. Lorne we had a screening a couple of weeks ago, maybe last week. Charlie does kim baker get addicted to war . Does she find this better than what you were doing as a copywriter or producer . Tina it is the theme in the book. The idea that people get addicted to this adrenaline lifestyle. And for sure, kim, and the movie she went over there thinking she , would be there for three months. She stays for three years. She finds herself like a junkie chasing the next story and victory, and starts to realize maybe it is a dangerous lifestyle to live forever. Charlie rose what is interesting about it, when you go to any hotel in a war zone, that is where they all hang out. You see the same people. They go from sarajevo to lorne the closer to those people in a certain way that you would hear about army buddies growing up. Once you have been through that kind of experience, youre more in common with the people that you are working with and probably anybody else. At least you cant talk about what you went through with any other people. Robert one thing that people said about what the addiction is like, one aspect is you get addicted to not having to live a regular life. You can say, no, im not going to that christening in new jersey im in baghdad. , tina it seems extremely important right now. Charlie and they are. Robert and they are. Charlie rose i mentioned earlier, the great war reporter. He is off all the time. He cannot resist going there. He knows he is good at the story and you want to do what you do well. That is part of the magnitude. Lorne you are aware of who else is there and who has a deadline. And who is going to do the story. And everyone from all those other countries as well. It has a flavor to it. They all have nothing in common with local population. Charlie there is Competition Among reporters. In your case, it is Margot Robbies character. Tina she plays tonya vanderpool, someone that my character idolizes and they become fast friends, but there is a healthy competition that eventually turns into maybe less healthy competition towards the end. She starts to realize that tonya is putting herself and others in danger in ways that are not good for anybody. Charlie this is where kim is meeting Margot Robbie. Can i ask you a favor . Feel free to say no. Sure. I hate to bring this up. I feel rude asking can i have sex with your security guy . By all means. Dont just say that to be polite. Im not. That would never happen, so you are good. You can have it. He is a serious piece of ass. Thats nice. You are like a 6, 7 in new york . Here, you are a nine, borderline 10. What are you here, like a 15 . Yeah. Charlie way back when in the late 1990s when she was at snl, can you see who will go to the screen, will be performers, more than just writers, not that just should ever be next to the word writer. [laughter] lorne tina had been a performer before she got there. She came in as a writer and rose up. Not annoyingly. Charlie rose do you see it early whether they had been a , performer or not . Lorne yes, but you can also see confidence, when people have had enough time on stage or are feeling good about how they are out there. Charlie like conan, you saw something, even though he had been a writer not a performer. , lorne he had been in the groundlings, but his dream was to be a performer. Whereas roberts dreams have all been met. [laughter] charlie i dont want to have to sound like it is that being a writer is not just great. So if you have that skill. So if you have that skill as much as tina and seth, and all the people we know. Lorne i think there are people who are very good at it that dont enjoy it. Charlie like . Lorne there are comedy is filled with people that are funny and miserable all the time. Charlie rose in life, or comedy . Lorne it is not something that brings them joy. They do it and they are good at it, but they are not fun to be around. Comedy is probably too important to be left to professionals. When you are around people who are funny, the thing that makes it the most fun is that when you are around someone funny, they are funny. Nothing makes people that do comedy laugh more than other people around the being funny. Charlie you said adam mckay was like that. Tina funniest man in the room. Lorne adam brought tina. Tina adam gave me my job, brought me to snl as a writer. We were in chicago at the same time. He was on stage. Charlie when you are the funniest person in the room, is it just offthecuff funny . Tina yeah. In adams case. Lorne it also helps when you are adams size. A little intimidation. [laughter] charlie do you want to direct films . Robert i would like to direct the film. Tina charlie is going to be cut out of this. Please just restate the question. Robert i thought this was just going to be me. Why did you say that . Charlie so you could use it without me. Robert i was repeating the question to process the question. Charlie people always do that. Robert im sure. [laughter] who would do that . Not a president ial candidate, we know that. I have directed a few television shows, and enjoy it, but it does eat you up. I like the idea of directing. It would have to cost someone else i dont want anyone house zero dollars. Looking over my shoulder and wanting their money back. Charlie directing gets done, but not costing zero dollars. Charlie rose is weekend update great training . Tina for many things, yes. For joke writing. I remember when i started working on weekend update when colin quinn was the host. I was a staff writer. A few of us, as a favor, were pulled in to try to road extra jokes right extra jokes, and try to write a joke that is contained in itself, it is a difficult thing. That is a great thing to learn. Robert was a producer of weekend up date when jimmy and i did it. The thing that is the amazing gift about weekend update is you sit in front of the camera every week and you tell america, hi, im tina fey. The cast is working so hard, but they are in wigs and noses and even now as a viewer, sometimes i am like, is that kyle . Who is that . Lorne one of the things about update robert we knew we were going to get our 10 minutes. It is an island in the show where the five or six of us knew we were going to get our 10 minutes. Lorne there were shows that ended at 10 30 and movies that ended at midnight. If you are just tuning in, you could catch that. The audience is already warmed up. The studio audience is already there you know what kind of , house it is, which makes it much easier than opening the show. Charlie if you want to see political satire, where do you see it other than saturday night live . Lorne on the daily show and certainly key and peele are doing good stuff. Tina john oliver. Lorne yes. Doing it in a news format. I am trying to think of i think there is something there is a certain ability, like likability that there was with will ferrell playing george w or dana playing. Or darrell playing clinton, in order for it to work, there has to be some charm. You cant editorialize. You have to bring the person to life. If you are just editorializing them, and you disapprove of them, and you do not like them, and youre pointing at that in your performance it wont work. ,in a sense you have to commit , to making the person likable, even though whatever you feel personally is not that. Trust that the writing make the the writing will make the other part clear. Rose was it easy . Was at the end goal, to find whatever you thought made something about this person charming or likable . Tina with sarah palin . We did it, what, eight years ago now . A lot of us wanting to figure out what is the joke . What is true about this whole situation . I was talking about chris rock and why i think he is a genius. Lets take a situation and find something that is true that no one has noticed yet. That is what were trying to do. We were trying to figure that out with her and mccain. Robert it is a player with such good cheer all the time. The take is not negative. Charlie theres a sense that you cannot wait to lorne because if you are just scolding, there are no laughs and it is not fun. It is getting to make your own decision as the audience that we are encouraging as opposed to here is an idiot. Or here is somebody we admire. You think it did would come back . Tina at the end of the run eight years ago, i thought was probably i am at the age now that i was when she started. Last time i played her, i thought, i look more like her now. Lorne she came back with darrell when palin endorsed trump. At the 40th anniversary, we had that as a question. She was of a 40th anniversary show. Jerry seinfeld doing q and a and she asked him something, tina i said how much would you pay me to come back and run it . Lorne and then donald trump. It is prescient. Charlie rose roll tape. Tina thank you, iowa. I wanted to take a break from my fulltime career of writing things on facebook to fly down here and lend my support to the next president of the united states, donald j trump. [applause] hey, america. Isnt she great . Shes the total package. Smart, legs, yelling, everything. I havent seen a woman this impressive since jeb bush. Tina im here for you teamsters, you farmers and charmers whether you , are a mom, two broke girls, three men and a baby, or a rock n roll or, holy roller pushing strollers through , bowlers with an abscess molar. She is a firecracker. She is a real pistol. Shes crazy, isnt she . Tina [shouting] charlie rose that is talent, isnt it . Tina i think about making that jacket. The snl wardrobe had to make that jacket. They could not find it. Charlie rose you said something about voice in the beginning. Creating the character is crucial. Tina i think so. Charlie you just practice. Tina i would watch that over and over and try to match pitch. I try to do things that ive seen Darrell Hammond do for years, who is so gifted at that stuff. Charlie you said genius for chris. Chris is generally considered to be a genius at this. Lorne he is the real thing, yeah. Charlie is it delivery . Lorne he will tell unpleasant things to an audience that really isnt interested in hearing it, but he will do it with charm and it will be truly funny. It isnt always popular. He just goes into the areas where it is easy to with the crowd up to agree with you or , find whatever it is you want to hear and tell them that. He is a truth teller, and certainly in both communities. He does not spare anyone. Charlie you gave him high marks for the oscars . Lorne yeah. Charlie this is another clip from the film. Billy bob thornton and tina fey. Are you familiar with the term 4104 . It refers to women who are four s back home, and they become 10 when they ship out, and you are a four when you get back home. Tina are you saying i am a four . You are wearing an orange backpack. I have seen people with Actual Experience make bad decisions here. While you are outside the wire with my men, you will in no way distract them, understood . Are you asking me not to sleep with your soldiers . Not soldiers, marines. Youre not here to perform jobs of any type with my marines clear copy, ms. Baker . , copy. Out as, we will get you soon as we find a ride. In the meantime captain stern , will see to it that you get a wet hooch. What . It is a tent with a shower, unless you prefer a dry hooch. I would not, sir. Charlie what does it say about war, this film . Robert i always wanted to make sure this is a movie about people following the policy decisions, whether that is a decision made by a Media Company or politicians or what have you. , it is not a movie about big statements. It is about individuals and whether these experiences make a us stronger or not. Charlie is writing film different from what you have been doing most of your life . Robert it is, yeah. It is a much more solitary endeavor, which is the last thing anyone wants to hear about, the writer alone at the typewriter. Part of what i love about tv is the close collaboration, and this was collaborative as well, ultimately, but it is different. Lorne there is also a wonderful speech at the end of the movie, which im not going to do [laughter] charlie rose you are allowed. Lorne but it puts it in perspective because it comes out of the voice of a soldier. Just where we are in the continuum of this war in afghanistan and the number of people who came before us from Different Countries and different armies. It is the boundary people have been fighting over or a long time. Charlie the other thing is that in terms of what we are reminded of yesterday at the white house, where the president gave the medal of honor to a member of Seal Team Six who literally jumped on top of someone as a to save them, and reached up and grabbed the terrorist try to kill them. It is the extraordinary sense of people who act instinctively. They are in a different world. It is not so much thought, but instinct. Lorne americans have been sacrificing themselves since the beginning of the country. We have a Strong Military tradition. We showed the movie in washington last week at the naval memorial and there were a lot of military people there. The reaction from there as an them as an audience with different from what we saw in new york and l. A. They identify with and can see that some of it rings true or we got it right. Charlie some people look at this and they would ask this question. Is it simply acting that turns you on, or would you like to do more things that have a dramatic aspect . Tina i think that there are dramatic moments in this movie, but i think any good story is going to have comedy and drama to it because i feel that real life does. I am suspect of any movie that is 100 drama, all the time. Not realistic to me. Charlie are we also looking at a time because of streaming, because of success of hbo and showtime and all that, that the options for people who produce it, programming is bigger and better than it has been . Tina there are a lot of outlets. Charlie for longform and short form . Lorne they have a show on netflix. Where do you go to see netflix . Tina you go to your phone. Lorne oh. Charlie thank you. Tina thank you for having us. Charlie we will be right back. Stay with us. Joe nocera is here. He is a columnist for the New York Times. He wrote a provocative piece in 2011 titled lets start paying College Athletes. The article explored the inequity of the ncaa which generates billions of dollars each year, but does not compensate its players. Five years later, he has cowritten a book that reveals more about one of americas most powerful institution and is one of the voices leading for change. It is called indentured. The inside story of the rebellion against the ncaa. The ncaa . I grew up in the south. Joe we all did. Charlie i could not wait. Joe i grew up in providence. I was a huge fan of the friars. When we were growing up, and even beyond, you had the sense that the ncaa were the white ats and the people going after them like Jerry Tarkanian or ale brown were the bad hats. You look into it and spent some time on it and you realize, actually, in many cases, the ncaa was a powermad, ruthless, vengeful organization. Charlie lets go through those. Powermet . Joe yeah. They created in enforcement mechanism and they also ontrolled tv rights. He was a my way or the highway guy. If you did not do things his way, you were on the blacklist. If you said something about the ncaa you do not like, and this is what happened to tarkanian, they go after you. Charlie they look to places where you are violating rules that they have created. Joe or they can make it up. I know that sounds shocking. When tarkanian went to the university of las vegas, they opened in investigation at unlv nine days after he took the job. How exactly could he have violated their rules in nine days . But they didnt like him. They went to get him. One of the reasons we know this is because tarkanian litigated for 20 years. There are people under oath who basically said, the investigators said to me, we are going to get him, run him out of college sports. The head investigator had to admit in congressional testimony that he called tarkanian a rug merchant. He went on to be the head of division i. Had a very, very long career. All the criticism in recent years has changed a little, but it still has incredible power over the athletes who are basically 18, 19, 20 years old, who have no means to really defend themselves and fight back. Charlie here are the questions you posed in the New York Times. How can the ncaa ruin careers without due process or common fairness . How can it act so ruthlessly to enforce rules that are so petty, and why wont anyone stand up to violations of American Values and american justice . Joe five years later and it drives me crazy. Charlie it really does make you angry. Oe it does. Charlie business fraud . Joe i would not go that far. [laughter] i was at this table during the financial crisis, and i was not exactly a wallflower. I have noticed this with lawyers getting involved with ncaa stuff you dont expect it. Business fraud, volkswagen, this pops up all the time and you become cynical about it. The first time you look into the ncaa and realize there is no due process and they can say anything they want about any athlete and there is nothing the athlete can do. The first time you see it, you are shocked. You cant believe in American Institution can operate this way. Out of that shock, in my case, at least, comes anger. Prologue tells a story about a player named ryan boatright. It was the way they treat her mother, a single black mom in illinois with four kits. They are berating her and harassing her and demanding every check she has written for the last four years and the reason is because her excon former boyfriend, as an act of vengeance, called up the ncaa and accused her of a bunch of stuff. Charlie and it was not true . Joe some of it was true. A friend gave her money so she could accompany her son on college visits. Charlie a lot of those rules are crazy to most people. Joe even the president of the ncaa said some of our rules are idiotic. The rule about if you have a bagel its ok but if you put cream cheese on it, that is against the rules. They can put cream cheese on it, but if you put an egg on it im not making this stuff up. He sees himself as a eformer. He says he is hamstrung by his membership. I cant do anything without the members agreeing to it. The thing he could do that he does not want to do is that the internal culture needs to be blown up. He does not need the membership to do that. It needs to become a more compassionate and more commonsensible place. Charlie towards the athletes that make up the games . Joe absolutely. Charlie they are slaves, you suggest. Joe i dont go that far. I say indentured. There is a difference. Charlie come on. When you use the word indentured, what comes with it . Joe they are to a large degree shackled. Lavery is slavery. They can quit the school. They can quit athletics. Charlie it is a far reach. Joe right. Charlie why did you use the word indentured . Joe indentured servants were people were indentured to somebody, theyve got no money, they stayed until their tenure was up, and their boss pretty much controled them, but they could leave. There are three things that are offensive about this. One is everyone else is getting, all the adults are getting rich and the players are getting nothing. The adults are coaches. Charlie the people getting rich are the universities. Joe no, the people charlie how much do you think the university of alabama football brings to the university . Oe a lot. Charlie exactly. Joe but nick sabin is the best in the world. Why shouldnt the players get a piece of that is what im saying. Charlie i have not looked closely at all the argument they make, but they are coming here as athletes, but they are etting a life experience, in some cases they will go four years and get a degree, rarely in terms of some, but they, and they get some, and that is worth something. Joe here is what i would say to that. 95 of them dont become trouble. The bargain the university has made is we will give you an education and a better life. The university has not lived up to that bargain. E all know that. Arlie the bargain meaning that if you dont play the sport you are sought to play, you dont have access to the education the University Offers . Joe no. Ineligibility. Look at North Carolina. Painful subject for you. Charlie it is. Joe if you think North Carolina is the only college in the state with fake classes to keep athletes eligible which teach them nothing. Charlie it is awful. Joe the bargain the universities make with the students, they dont keep their end of the bargain. And the second thing most of the athletes, their only window charlie what is the part of the bargain, the university . Joe play for us, we will give you an education and the prospect of a better life. Charlie you say, look, pay them for what they are, but dont go way out of your way to educate them. Just pay them. Joe i think, as a matter of fairness, they should get some money. As a matter of fairness. Charlie just a matter of fairness that they should get money. I think you should be arguing hard they should figure out a way they can somehow get through this notion of giving Young Athletes some benefit for being at the university. Joe i totally agree with you. I do agree with that. I also think they should get some money. I have a salary cap. Charlie 25,000 . Joe i am not a complete market guy. You know. North carolina is just about to spend 25 million for an indoor practice facility for the Football Team. 25 million. You know, why do they do that . Because they want to recruit. They want to show the glitter and glamour for the high school kids. If you come to North Carolina, ook at the facility. Oregon, the facility is beyond belief. I would argue that instead of spending hundreds of millions of dollars on the facility, spend some to recruit the athlete. I went to Boston University because they gave me more scholarship money than anyone else. Money was a factor in my decision to go to college. Charlie create a bidding war for College Athletes . Joe absolutely. With limits. With limits. Charlie if you have a cap on it, it is a big limit. Joe if kentucky says charlie we will pay you 25, and we will pay you 25, and some college that has never made the final 16 says we will pay you 40, there is no cap . Joe i have a salary cap, whether it is a 25,000 minimum for every player, and leave half the cap to recruit. I dont mean to be so complicated. The essence of the idea is there is nothing wrong. Youre mentally blocked on this. There is nothing wrong with using money, as happens with any other students on the university, to attract players. There is nothing immoral about it. It is ok for lebron. It is ok for kobe. Who went directly from high school to the pros. Yet, it is somehow immoral . I think they should have agents. Charlie to represent them between high school and college . Joe every hockey player in college has an agent. They dont talk about it, they dont get paid, but when a hockey player comes out of high school in canada, he has a series of complicated decisions that he has to make. Charlie buzz integer calls the ncaa the countrys most corrupt institution. Joe i would say the nra, but the ncaa is up there. Charlie you see them like you see the nra . Joe i would not go that far. Charlie Taylor Branch says the incident should be impaired compared to a plantation. Joe i will tell you something unbelievable. Walter byers said it. He may be ncaa powerful from 1961 to 1986 and then turned against them and wrote a memoir in which he did overtly compare the ncaa to a plantation. And made a lot of the same recommendations that people like me and taylor are making now. Charlie that is a great story. Why did he change his mind and said, the thing i created is joe i believe he was the powermad guy. He was in his 90s when i was working on this book and i tried like crazy to get an interview. I even went to his son. He would not talk to me. This is the only question i wanted to ask him. Why did you change your mind . He would not answer. My theory charlie what did his son say . Joe he wouldnt tell me, either. Charlie you did not do so well. Joe i completely failed on this completely, you are right. It was in 1984 Supreme Court ruling that took away the Television Rights and give it to the schools. He used to control the Television Rights. You could only be on twice a year, and only make so much money, so one. Charlie whatever is on tv, we get a piece of it. Oe basically half of byers power, he lost half of his power. He was power hungry. I think he turned against the ncaa because he lost a lot of his power. Charlie who instituted it . Joe university of oklahoma and texas were the prime drivers. Charlie big football powers. Joe just as the power five in the last few years have taken more control, in the old days there was something called the cfl that made up the big football schools that were fighting the ncaa. Charlie bill friday, former president of the university of North Carolina was a great friend of mine. I spoke at his Memorial Service for him and loved him. He used to say to me every six months, why are you not doing stuff about corruption in College Athletics . Joe he was a great man. E founded the Knight Commission which was an effort to try and keep academics first and foremost, but he failed. He failed. Everybody whows trying to deemphasize sports or keep academics as a primary has failed because football is too big a business, there is too much money at stake, and the board of trustees all think a are jerry jones. They care more about the Football Team than the history department. How about that one . Charlie really, joe . [laughter] joe i have seen it enough time. Charlie because of the amount f money it rings in. Joe everybody wants to win. I dont blame them. I want to win, too. The friars are in the top 20 for the first time in 10 years. You think im not following that . Charlie here is what is interesting whether reform can come out of this that will really benefit both the university i would like to see something for where every scholarship they give to an athlete, they have to give a scholarship to a computer nerd. Joe im for that. Charlie the smartest young physicist in high school today and give him the best. They may get that education anyway because there are all sorts of Scholarships Available for students. Joe reform is tough. The legal system as declared the ncaa rules in violation of antitrust and yet the legal system has been unwilling to overturn an change anything. The union drive, which we recount, a chapter that ben wrote, about the Northwestern Union drive basically failed, and to tell you the truth, it will sound more radical than things i have said, but the model is the missouri Football Team from last fall. Charlie what they did was so amazing and to be admired. Joe the issue was racist on campus. Charlie Football Team as he unit took a stand. Joe the protest went on six weeks. The Football Team said we will go on strike and the president resigned in six hours. 36 hours. If you want to change the system charlie did ever university present take notice . Joe i bet they did. I know it is hard to cut us they are 19yearold kids with their future in front of them, but if one team would refuse to come out for the final four, it would change within hours. Unlv almost did it. In the 1990s. Charlie that was before they got beat by duke. Joe they had a secret plan to go on strike and duke beat them. Name another way that duke has caused trouble. [laughter] charlie there is so much more to this story and to love joe is to know the passion he brought to the peace that led to the book. Indentured written with ben strauss. Joe young, talented New York Times contributor and he will have a big future. Charlie and so will you. [laughter] joe if im not too old. Thank you, charlie. Charlie back in a moment. Stay with us. Snotes charlie i want to talk about new businesses and markets and technologies that you are in, but not in a big way. The Business Market. In september, you announce the ipad pro. Said to be in initial salvo, even though you make some money in the Business Market. You are primarily a Consumer Products company. Where is apple going in the Business Market . Tim let me explain something that i think is maybe our bestkept secret. Ere is the secret. Not this september quarter, which we just finished, i cant talk about the results, but if you back june up the previous 12 months the previous 12 months from ending in june. Charlie ending in june of 2014. Tim 2015. Our revenues from enterprise were about 25 billion. Charlie this is a company that revenue a year is over 200 billion . Tim 25 serious business. If you look at the growth of it, it is coming from a very small number not many years ago. The growth is incredible. What are we seeing . We are seeing people say, wait a inute. Products are employees want, iphones, ipods, and max, and forwardthinking ceos are thinking, give them products that make them more productive nd empower them. We put a significant emphasis on making sure we have enterprise features in our operating system. We have been doing that for years. With our partnership with cisco, you are seeing this begin to take traction. I think we are also in the early stages of this. Charlie ok, but what are you doing . Selling products that they can use in a Business Enterprise sector . Tim yeah. They are products that you and i see as Consumer Products. You think the ipad is a consumer product, but it is not eally. It is a business product. Charlie you are going to introduce Consumer Products into the Business Market . That does not sell i can apple challenge to me. Tim that is not all we are doing. If you think about what makes a process working business, it is do you have the right application . Where there has been an explosion of access for consumers, the Business Market s lacking. Lagging. There is only a few. What we are doing with ibm and cisco is working on vertical applications for unique jobs in the enterprise. I know this sounds strange, mobility is kind of a new concept for a lot of enterprises. The penetration of mobility in the enterprise is very small. When we look at this, we see enormous opportunity to change the way people work, just like the way we changed consumers lives. We would like to make peoples daily work better. Charlie the ipad pro will play into this . Tim yes, but the other ipads as well as the macintosh. Charlie that brings us to the car. [laughter] tim you keep going back there. Charlie obviously you care about it, otherwise i would not read all the stories about it. Google is your primary competition, you have said, and they are passionate about a car. Obviously, elon musk is passionate about a car. Why wouldnt tim cook be passionate about a car . Because he is. [laughter] why do we need the ambition to do Something Big in a car . Tim we have a program in a car called car play which makes it seamless to use your iphone in a car. Charlie it seems that apps will have an increasing role in echnology. You said clearly television. Some say it is going to replace search engines. Tim definitely, when you use apps, search becomes different. Search becomes quite different in some cases. Charlie better . Tim it is up to the user to judge better, but in most cases if you search today, you might get 2 million responses or maybe even more than that, a gazillion responses. You probably dont want that, right . You want to know what you want to know. You want something very specific to come up. I think that is what the future of search holds, trying to give you what you really want, not this laundry list of things for ou to charlie in a consumable manner. What is going to happen to get us there . Tim lots of technology. There are Many Companies that know a lot about search more than we know, i am sure. Charlie when you look around the corner, what is shaping the corner . Tim there are a lot of things shaping the corner today. This app explosion, shaping the orner, a. R. Is shaping the corner, v. R. Is shaping the corner. In the automotive world, electric vehicle and Autonomous Vehicles driverless vehicles are shaping it. Charlie Artificial Intelligence . Tim ai, very much machine learning. Very much, machine learning. The trick is not to see just what is shaking it, but how you can use those things and productize them into things people want, and they may not know it today, but they ant. It is not just seeing what the underlying technologies or capabilities are, the finding way to productize them. That is the magic of the company. The following is a paid advertisement for time lifes usic collection. Announcer there are artists we will always remember. Mona Lisa Mona Lisa men have named you announcer there are beautiful songs, words, and memories that will always touch our hearts

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