Trying very hard to solve but were not doing a good job of. They believed they had a way of doing get that nobody else had thought of. 1998, they started initially by indexing all of stanfords pages and ended up blowing up the stanford network and getting themselves in a little bit of hot water. As him pretty quickly, started google and pretty quickly, started google and it has been a rocketship ever since. I want to go back to the apple example is in some respects, apple and google arguably started at the same time. Thee obviously started in 1970s, but then steve jobs got fired from the company in the 101580s and apple went years where fortunes really declined steadily. It was not until 1997 when steve jobs returned that apples fortunes really began to rebound. In fact, it is pretty wellknown among people who Pay Attention in the valley when steve jobs came back, apple had 90 days of cash left before it was going to augur in. Respects, you could say both companies started around the same time. You right in your book that battle is thele defining battle of a generation. What do you mean . One of the things that makes Silicon Valley so interesting is that most of the companies here are started by their founders. Results whenever they are there are fights over things, the fisa get nasty and personal very quickly because each of the companies has been built froms scratch built from scratch. Steve jobs took everything that happened to apple personally and larry and sergey takes everything that happens to google personally and Mark Zuckerberg takes everything that happens to facebook personally. And so, fights can break out. Kind of nasty. On top of that, what you are dealing with apple and google in particular are what makes it a particularly interesting and defining fight is it youd just do not have to companies that are fighting over the future of technology. Ipad and google with all of this android devices. It is not really just about technology. It is about the future of media and future of television. Evolutionnteresting of that is starting to happen which effectively Silicon Valley is starting to become a media center in ways that people are beginning to get their head around. So, these are content Distribution Companies . Absolutely. Peoplethe things that are just starting to get their heads around our apple and google together by controlling the endpoints of all of the phones and tablets that we use because google controls the android and apples Iphone Software and no application gets on those devices without their say so. I think one of the things that is starting to happen is that these guys control so many and so much so many money that people are starting to them to help them finance some of the content they want to get out there. Most peoplepecific, do not think of apple and google as content companies or Distribution Companies. At this point, the eyeballs they control probably rivaled those of the studios and television the broadcast networks. And so, i think you are going to see Going Forward that not only are they using this vast distribution network, but also their Balance Sheets to actually content ond more their networks. 15 people do not pay that much attention to is google has about 50 billion in cash sitting over 100d apple has 50 billion in cash. That is 200 billion. Opinion, it is only a matter of time before these companies actually start contentce the kind of we are going to start to consume the day today. I can get more specific if you want. Please. Pays closey attention to netflix and house of cards, and orange is the new black. To most people those are good shows. Two people out here, it is quite seminal. It is the first time that somebody other than a Cable Company or broadcast company has distributed a hit show. Netflix is a Technology Company based in saratoga. Think apple and google and microsoft and facebook all netflixt the success of with its content and thought, heck, we can do that too. Beginnings of the this starting to happen both at amazon and microsoft. 3gle with you to has spent million. N, 500 what people do not realize about youtube is one of the things people think about when they think of you to its dogs on skateboards or other things you might find on americas funniest home videos. What is really starting to happen is it is becoming a platform it is the common the newest platform for professionally produced content as a way of bypassing the thatibution mechanisms comcast added a Cable Companies have or broadcast networks have. Amazon and google are the people that control the endpoints of our devices. Big are going to be really players in that. In your chapter changing the world one screen at a time, you write that it will be a good proxy of how it will evolve. Yes. One of the things people forget about hbo is most people think about hbo as the home of breaking bad and sopranos. One of the things they forget is back in the 1970s when hbo first got going, the way they build their business and its Subscriber Base was by buying lots of movies from hollywood on their running them networks so you could subscribe to hbo and get all kinds of movies you might not otherwise get anywhere else. It was a very convenient way for people to watch movies maybe they missed. Time, peoplelong thought of hbo as the movie channel. That sounds familiar, doesnt it . That is what netflix is doing with its business model. It is trying to build up a Subscriber Base that generates money that it can use to finance original content. Going to be is really interesting to watch , hbo has this incredible content, but you cannot get it on a less you unless you have a cable subscription. In order for me to get hbo, i have to call the comcast guy or n and i have come i to subscribe to other channels id may not want. The great thing about netflix is you do not have to do any of that. Is 10 15 a month and dollars12eight dollars a month. The most important issue here is it is unbundled. What is going to be really interesting to watch is the is to watch the rise in pressure on hbo over the course over the next couple of years as a try to grapple with whether or not to go eat with the net flicks and all of the to compete with netflix and the other companies and amazon who might be producing original content as well, what hbo is going to do . Are they going to start putting pressure on all of the Cable Networks to allow them to sell their channel on the bundles . How thatthink watching plays out is going to be really, really fascinating because if the Cable Networks resist, and refuse to let hbo go its own way, i think you are going to see some tension between hbo and the Cable Networks. And i think itll be interesting to watch. About apple and google, but how do the comcast and verizon and amazon and facebook fit into this infrastructure . One of the things ive thought about for a long time before i put this project together was exactly that question. To example, is there a way distinguish between what google and apple do and what facebook is doing and netflix is doing and amazon and microsoft are doing . What i concluded is there was actually. Doing those companies are interesting and important things and there will be lots and lots of room for what they are doing in the new world. The one thing that none of those companies have been google and amazon do have is control of the endpoints. Apple through its Iphone Software and Ipad Software and itunes Software Controls all of the applications and content that people see on their iphones. And google through its Android Software on the tablets and phones and increasingly other all of thetrols content and software that appears on those devices. Sort of the way that microsoft controlled the pc industry in the 1980s and 1990s. These two companies would be able to exercise similar kinds of controls over the ecosystem one notch above what everybody else and that everybody else was doing. In the 1990s, many of us have forgotten that microsoft was controlled all of software that was on every pc. Essentially controlling the all kindsd there were of fights between Companies Like aol and netscape and a dolby and all of the other Companies Just theet adobe and all of other companies. In the latember 1990s, the fights and negotiations that aol and microsoft had over where aol you turned be when on your computer that was controlled by microsoft and aol which at that point was a very big player and a very powerful that point, aol and microsoft were really going at it. Aol had to cave because microsoft controlled the desktop. Microsoft had a monopoly and it controlled what people could and could not see. We are sort of seeing a little bit of that right now which is that apple and google both therol the desktop or screens that we see when we turn on our phones and tablets. Theres a pretty good fight over who is going to be where only those springs when they are first turned on. One of the things that i write about in the book a little bit facebook experienced this firsthand in about 2010. It was negotiating with apple over a way to more deeply integrate facebook into the could, for example, you take your phone contacts and compared them with your facebook friends automatically. Well, that deal went to twitter as many people remember. And lots of people at the time were going, what is up with that . It seemed like twitter came out of nowhere to get that the deal. The answer is facebook tried to negotiate with apple and apple sat, we do not want to negotiate with you, we will go to twitter. If you talk to people at facebook they will tell you in a grudgingly way that when they negotiated with apple, they were more flexible the next time. How seriously do these superpowers taken this war . I think they think about it every single day. To pull each others employees. They try to figure out ways to because theher reason they take this so seriously is both of them are worried that what is going on here is a war. War,happened in a platform there is really what looms as one big winner. All of these companies are worried that if the other company wins, they will wind up not only losing, but losing really big. Peculiarities the of the Way Technology works. It tends to create what you might want to call rolling monopolies. What i mean by that is if you the at, we all know microsoft story. Itsosoft came out with windows operating system and by putting it on every single pc, ended up pushing apple and all of the other new operating systems for computers aside. Remember but not in the early 1980s, there were different systems that existed. Microsoft as a result created this indoor miss monopoly. Monopoly. S every body start using windows and economic literature. The thing that most people do not realize it is a history of how Silicon Valley operates. There will lots of companies in the late 1990s when ebay got going. But now, theres only one auction company. Why . Y allowing, ebay b users and buyers and sellers to talk each other, came up with a feature that everybody liked and such a hugegot chunk of traffic and buyers and sellers that ultimately, people realized if they wanted to get the best prices they needed to go there. You wound do with that situation where people use ebay because everybody else was using ebay. That happened with google in online advertising. 2004, people thought yahoo in going to beat Google Online advertising. Ultimately, google created a Network Effect with its Search Engine and search advertising that allowed it to take 80 of the market. The last example is probably the most recent which is facebook. Myspace, social Networking Companies out there is pretty large. Now, theres only one. Why . Everybody uses facebook because everybody else is using facebook. Apple and google have looked at this history and it is hard for of them to come up with up with acome compelling argument on why it it will be this way, not end up the way microsoft and ebay and facebook and google ended up. But, i do not think anybody wants to take that risk. And so the reason they are fighting so hard is because they sort of feel like there is an all or nothing game. On top of that, the size of the pie is bigger than it has ever been. This is not really just a fight over who will be king of the hill. Who wastalking about going to be king of the hill and the content industry, that is about 250 billion each year. And boths are Higher Companies realize that if one company wins, there may not be room for another. Dogfight how apple and google went to war and started a revolution is the name of the book. The author is Fred Vogelstein who is also a contributing writer for wired magazine. You have a major chapter about convergence. I do. Nieces and that thesis in that chapter . The whole point of that what fors essentially many, many years, the essential tech,on in the world of the pc andnt, television are going to wind up converging and that at some point, there is going to be one device where we do all of our computing and watch a get all of our entertainment. This has been, this debate has been the source of all manner of dealsation and business over the course of 20 years. The most famous convergence deal is that aol time warner deal which to not work out well for anybody. But there have been many others. Over the years, the idea of convergence has come to get a really bad name. It makes people shudder when you becausend rightly so they see money just flying out of their pockets whenever people get too excited about it. It is actually happening. What has happened is while techbody in the media and business were still debating whether or not the pc or tv was going to be the convergence device, you had the smartphone and the tablet showing up at actually solving the problem. And so, the smartphone in doticular, it allows you to all of the things you might to do on the computer such as email, surfing the web, etc. And if you happen to be on the bus and you are bored, you can start watching a movie or tv show. It is the perfect convergence device because it allows you to do work and fun as the same time without feeling like you have to change the way you approach things. It goes with you. This is really starting to take off when the ipad came out. The screen is big enough that people in the Media Industry looked at it and said, well, heck, i can put my magazine on it. Heck, i can put my movie there. All of a sudden, people were starting to realize that by putting all of their content on these devices, theyll finally solving some of the distribution that has been bedeviling them for years. If you do not have to send, if you do not actually have to ship is books or movies or everything you can send it to people could be digital, you could not only lower your costs of distribution, you can explode the amount of shows that people can watch. One of thengs wonderful things for advertisers because the now advertisers can truly reach consumers wherever factare because of the that all of us have a phone or a tablet with us at all at times. I think this is turning out to thanmuch bigger deal people really expect because atimately, we are now at , ift where five years ago somebody said, i am going to go watch tv that was an honor of the with statement an ambiguous statement. If somebody says i am going to watch tv today, it generates as much confusion because if i am watching house of cards on my iphone, it feels like i am watching tv, but i am not at all. And so, we are moving toward a just we the tv is when talking about youtalk about tv, are talking about three inch tv or seven inch tv or 25 inch tv . Convergence of the tv ad tablet and iphone into devicesmless set of that all can play the same content at any time depending on sort of what you are doing at the time, it is an amazing change that we are beginning to get our hats are round. Dogfight how apple and google went to war and started a revolution is the name of the book and the author is Fred Vogelstein of dogfight how apple and google went to war and started a revolution magazine. Some people in the movement decided to take the cause of Marriage Equality to the supreme court. That is what i chose to write about. That itlly gratified does cause a stunningly intimate story. That is the story. That is what i set out to do. I was fascinated. What if you like to be part of a major civil rights litigation case . Both high profile and controversial. What does it feel like . What was the judge thinking as he considered the evidence . It turned out he was gay and one the many twists. Ultimately, what i wanted to convey was what does it feel like to want something that everybody else has and be told you cannot have it . From the first attempts to stop californias prop eight to beckerdown doma, jo tonight on 10 00 eastern and tomorrow at 9 00. Is e, our Club Selection himit calls you back. On tomorrow plus newsmakers, Bernie Sanders is our guest. He is the chairman of the Veterans Affairs committee and talks about allegations of misconduct. He comments on eric shinsekis role and adjusting the matter. The truth is that the v. A. Is a huge institution