tv Bloomberg Business Week Bloomberg August 7, 2016 4:00pm-5:01pm EDT
carol: welcome to "bloomberg businessweek." david: we are inside the magazine headquarters. carol: elizabeth warren on donald trump. david: how time warner will take on amazon and netflix. carol: raising megabucks on broadway. david: all of that ahead on "bloomberg businessweek." ♪ carol: we are here with the editor of bloomberg businessweek, ellen pollock. this is a double issue big , interviews. and there is a theme tying them altogether? >> no, there is not a theme but
it is meant to be a very diverse group of people, it is meant to be something -- they are all different. we hope that you take it to the beach. we have more than a dozen ceos, sometimes we are talking to them about things you would not expect. we have carlos talking about how he would change the work week. just sort of unusual things. we have ringo starr on brexit, believe it or not. david: ok. >> yes, most people have, a lot of people have. and it is sort of unexpected, a nice unusual mix of people and it is fun. and you get to hear them in their own voice. a lot of times, you do not, so it is sort of an interesting journey. david: let's talk about a few of them. the founder of the black lives matter movement, what does she talk about? >> she talks about the founding of it and how it is basically founded with a hashtag. and she talks about how so many
people sort of have a misconception about what racism is. she says, it is not just about being nice to each other people being mean to each other or interpersonal relationships, but it is really about people, well-meaning people who keep institutions the way that they are and keep systems the way they are in a way that does not allow for change. carol: she talks about the clintons, she talked to the president, she covers it all. she talks about donald trump. >> she really does. she talks about how the people who can change the whole donald trump situation are the people that he is appealing to. she says, it is not a matter of opponents of donald trump, mobilizing those who are not for him, which makes sense, but it is the people he is trying to address are the people who are going to prevent him from becoming president, which is
important to her. carol: i love that she does not hold back. you also spoke to an author about the new book she has coming out that talks about a fiscal disaster. ellen: this is interesting. she is very well known for a book she wrote called, "we have to talk about kevin." and what is interesting is she talks about what finance means to her personally and how her life has progressed. now that she has a best selling book, how her finances have changed and now her feelings about money has changed. it is a fascinating look at somebody's views and how they have moved forward. david: she ends up buying her own place. we had jerry smith talking to the head of time warner. time warner taking a big stake in hulu this week. it is interesting thoughts about the future of media and how we watch shows.
ellen: one thing we asked, how has netflix affected hbo and his view was, you should be asking about how hbo affects netflix, because the whole idea of the subscription business really started with hbo. and he talks about how the fact that there is so much more content on tv right now, it does not mean that fewer people are watching individual shows, but because of search and the way that you get suggestions online about what to watch, this makes it easier for people to find shows that they want to watch. david: i spoke with jerry smith. he did the interview. david: talk about the big media companies today. he has been with time warner for a long while. guest: he started with them in 1979. and he started with hbo when it was a fledgling channel and he rose through the ranks and he
became, he actually led hbo at a time when they launched big hits like the sopranos and sex in the city. since 2008, he has been the ceo of his company. the company he inherited with this massive, media conglomerate. they had aol. time inc. magazine. time warner cable, cable company. he looked at these parts of the company and said they did not really relate to each other and they spun off and what is left is essentially this smaller company that is focused on the business of hollywood. hbo, warner studios, and basic cable channels like cnn, which is having a monster year in the ratings because of the election. david: all the goings-on. >> absolutely. it is a really interesting time for this company. right now coming with companies like netflix and amazon and hulu
that are really aggressively ramping up original programming, really putting pressure on hbo to maintain its position. david: what does he say about the pressure? how does he regard those companies and does he think they are doing something fundamentally different than he did it hbo? guest: i asked how the strategy has changed and he sees netflix almost copying hbo strategy, basically doing the same thing that hbo pioneer decades ago, except netflix is doing it over the internet, and i think he does have great respect for what netflix has done, especially with how, when you go on the next, is very easy to find what should you want to watch and you get recommendations. david: algorithmically curated and all of that. he understands reed hastings and
how he has developed technology that is useful. especially when you think about the tv industry right now, more than 400 original scripted shows last year, a new record. there are more and more shows that you and i can ever watch. i think what he is really concerned about right now is making an interface so that when you are watching television, it is really easy to find what you want to look for. david: you mentioned more than 400 shows right now, so when you of a media company in the room, you have to ask the landscape is saturated. if there is too much content. what does he say? guest: he says that this is actually, this is a good thing and what is happening now is viewers are really expecting to have a lot of good content out there. so just because there are hundreds of shows competing with hbo or tnt, that does not mean
that people are not interested in getting hbo or having tnt in their home. he says there is consumer expectation right now for really quality programming. a company like hbo was the pioneer of that. carol: dozens of high-profile interviews and five different cover images. we asked the creative director how he decided what to publish. >> five was the most we could do. we wanted to show everybody the range of people that we were interviewing. i think we had 39 or 40 people in the issue. carol: you would have done more if you could? guest: yes, actually. them, so we95% of have a lot of photography and we were kind of excited to show this big diverse issue with a lot of people talking. just in the cover, we have ceos an activist, we have , politicians, so it gets a feel of the diversity. carol: you make them different with the color and the way you arrange the interview issue across it. guest: inside the magazine, all
of the quotes are designed differently and it is to reflect the fact that this is not cohesive about this issue, other than the fact they are all interviewed. you are getting all of these different voices from all of these people. that is reflected in the design. we wanted to do the same thing with the covers. on each cover, the word interview looks different. david: did the same photographer take all of the portraits? guest: no, we had different photographers across the country. we tried it to have a cohesive look. and we also for the covers, we were very mind the color palette, making sure each color applied to the subject and also different for each one. i was pretty happy with that. carol: it is interesting. the color block it really kicks "bloombergd businessweek. why did you do that? guest: there is a lot of type in the issue.
we did not want the subjects to feel completely buried, so we wanted to lower the logo so they felt a little more prominent. david: up next, how mark weinberger keeps millennial please happy even when they leave. carol: delta airlines fineness. david: and winning over bernie sanders supporters. carol: all ahead. ♪
david: he spoke about how to keep millennial employees happy. david: why was he somebody that you wanted to talk to? guest: i was interested in him because his company, ey, is such a large employer of young people. i figured, if anybody had a finger on the pulse of how you do with millennials, it had to be them. david: you think about public accounting and young people is not the first thing that comes to mind. guest: it is surprising because so much of the workforce now, you think of people who are in the middle of their careers, especially with corporate jobs, but things like consulting and accounting, they draw heavily from college graduates and it puts them in a sweet spot of dealing with people in their 20's, maybe their early 30's. so at a place like ey, was surprised me is the median age is 29. david: unbelievable.
>> half the people there are under 29. that is a big change versus what those people in the u.s. are used to. david: is this a change that the company has pushed for, are -- or are they looking at the pool of where people are coming from? >> it is basically a response to what is happening in employment today people come in, particularly millennials are much more into what the notion of, i will go where my career takes me and maybe i will do this for a few years and then i will move elsewhere. that is a big change from boomers who thought, i find the company, i work there for 20 or 30 years and that i get attention and i moved to florida. that is not what today is the worker wants to do. david: i was struck with how cool he is with that. he is not hiring people with the hope, maybe hope that will not come to fruition, that he could keep people for 10 to 15 years. >> i was surprised by that.
i would've thought this to be a big challenge from an employer standpoint that, oh my god, my people will leave. but they figured out that there is nothing they can do about that. that is the nature of the people that they will hire. high potential millennials with good college backgrounds and people that are aggressive, but also think about their own benefit here. what they decided to do was to make the best of that, which was, i train you, i make sure you feel good about me. if you do leave, which is most likely going to happen, you will go out with a really good taste in your mouth and he will spread the word about what a great place i am to be employed at, but you will also send business back to me from your new employer and he will say, i know this great company they can do this job for us because i used to work there. carol: and the delta ceo in this issue, ed bastian. david: talking about keeping delta on a winning track. >> he is very, very passionate
with the fact that he had disagreements with the company of the time. they had launched a low-cost unit copiers back, never really going after the discount market, responded to southwest, jetblue and he is pretty adamant in telling us the history of delta that he thought that was the wrong strategy and out of that disagreement, he decided to go to another company. david: he did. what can help them to come back to delta? >> i think the main reason was that several people he was having disagreements about strategy or replaced. had been onhe time the board and agreed to the ceo to try to fix what was going on in the operation, and i think when he and jerry got on the same page, he was ready to come back and go through the bankruptcy and really start with a clean sheet. david: how healthy is delta
today? >> right now, it is very healthy. they are pretty much leading the industry in terms of revenue premiums for the fares they are charging. they are really hitting hard on operating reliability and getting the planes out on time and making sure that they really do not cancel flights unless they absolutely have to. delta does not cancel a lot domestically anymore unless it is the absolutely worst case scenario. so right now, delta is pretty much at the top of the industry in terms of earnings power. david: we think of all of the low fuel prices we have seen over the last years, so how does that affect the bottom line? >> it has helped everybody. that alone has been a major, major boost for every single airline because that is one of the biggest cost for the airlines, obviously. they are getting the same benefit everybody else is. airlines that have hatched field
of gothenburg, southwest, gotten burned on that. in the aggregate, low fuel prices for an airline is a wonderful thing for these guys. david: what did he tell you about the economics of running an airline today? he left when there was a big push for low-fare carriers. where does he see the industry going? >> low fares are still common across the industry and that is a lot about supply and demand, a lot more capacity for domestic today. when you look at a lot of things, delta and other airlines are doing well because it is not low fares across the board. the thing about airlines, you might not get a great return any -- in a particular area, but you are probably making it up somewhere else. there is really fierce competition and there's a lot of ultra low-cost carriers like spirit and frontier, but at the
♪ david: welcome back to "bloomberg businessweek." carol: the politics and policy section, how the green party presidential candidate jill stein plant to win over some orders of bernie sanders. >> unlike someone like ralph nader was long before she was running for resident on the green party ticket, a green party activist. she was the green party candidate for example against mitt romney massachusetts. she has been involved in a long time with activism around issues
like the environment and she ran in 2012 and is now overwhelmingly likely to be nominated by the green party in 2016. david: she is a medical doctor. you write recently she has made some comments about what she sees as the potential link between vaccines and autism, something that has been disproven but it is still something widely talked about. how much does health care, her job in health care, effect what she does in the political arena? asked made comments when to the washington post about vaccines in which she referenced corporate control over regulation is something that might make people have less trust in vaccines and said something about how when she was practicing, there were issues able raised in some of them may have been resolved. it was a somewhat equivocal answer that people found unsatisfying on an issue where some people may really be looking to political leaders of
all stripes as validator's on a question of what you do with your kids. on twitter, she said after she got blowback about this, she is not aware of any evidence of a link between vaccines and autism. in health care, she has been a critic of the existing system, including under obamacare and said, when i followed her to philadelphia, that we have a sick care system not a health care system and there is more to do to make it that everyone is covered. what he talks about more often is the potential for a climate apocalypse, the degree of economic inequality in the country, in a sense where there is no more time for democratic or republican approaches to some of these crises facing the country and the planet. carol: up next, marissa mayer on corporate motherhood. david: senator elizabeth warren
david: welcome to "bloomberg businessweek." carol: we are inside the magazine's headquarters. david: we are looking at the interviews issues. david: marissa mayer on working mothers. and mtv making the old new again. carol: all ahead on "bloomberg businessweek." ♪ david: here with the editor in chief, ellen pollock. so many must-read interviews. let's start with marissa mayer, ceo of yahoo! that is the now
sold to verizon. an interesting story how she got to verizon. she was at google before hand and she talked about the challenges of being with the company in the early stages. ellen: google was young and she talked about how the founders had only been like rollerblading on the campus of stanford and how much she learns there. and for a verily long time, she had at least one all nighter a week, working 130 hours a week, which is a lot basically how exciting it was. and then she goes on to talk about what it was like to be working at yahoo! during the last year where it was for sale or it was not for sale and so much was going on. carol: and she talks about parenting, because she had kids through all of us and it was not always easy. ellen: and she had twins about the time that they were getting
bids for yahoo! and there were decisions on big tax issues, whether they could spin off part of the company. and activists at her back. verizon calling. she says she was the busiest person on the planet. actually someone said that to her and she really was because she had twins at the same time. i personally could only handle one. and twins, that is impressive. carol: another busy woman, senator elizabeth warren. she has something in common with donald trump. >> she did. what she has in common with donald trump, there are a number of things, one of them is glass-steagall and also tpp. she wants tpp dead. she was asked, do you really think it is? and she said, i do not feel it. he very adamant that it is dead. and but also comes across is that she is going to keep her i on hillary clinton -- her eye on
hillary clinton and make sure she follows through with her promises. david: one thing the reporter asked her about was the role playing sees herself with bernie sanders going forward. ellen: that she will be watching at all times. carol: speaking of donald trump, another individual that comes up in the magazine, charles ham, well-known in the oil industry and also a supporter of donald trump. ellen: yes, he talks about the oil industry and how he feels that the u.s. oil industry is going to benefit from opec being weaker, which not everybody agrees with. he thinks it will be weaker and that the increase independence of the oil industry in the u.s. because we are producing so much more is going to be one of the day patriotic events of the last few years, despite the fact that oil prices are now down in error issues in the industry.
he is a big supporter of donald trump. he is very clear about that in the interview. david: i spoke to matt about his conversation at the convention. he is the 11th son of sharecroppers in a,, growing up dirt poor, started his own business at the age of 20, basically out on his own as a land man. 50 years later, he is the 76th richest man in america and depending on the price of oil, he is as self-made as it comes. and is responsible as anyone for the shale revolution. well fluctuates based on the price of oil. we saw oil going through a bear market. so what does he say to you about the low prices over the past months? guest: on one hand, they have forced operators to become more efficient and to do more with less. at the same time, the finances
are terrible. there is this industry that was already loaded with dad that he did higher prices in other parts of the world probably to make a profit now that we are starting thend $40, that seems to be case going for, that these guys are going to still have a lot of problems. what is interesting, this is a problemnd let --glut and he really wants to talk about the erroneous revocations -- regulations that the government puts on himself and others. david: you sat down with him during the republican national convention, what did he have to say about why he is thinking donald trump would be the best person for that job? guest: he says he basically will get rid of these regulations that he blames the obama administration for putting on
operators like himself. and only donald trump will truly unleash the potential of u.s. energy. what is ironic, as much time as he spends railing against the obama administration about how about they have been for the oil industry come over the past 7.5 years, this industry has doubled american oil production, so you wonder, what is it that you wanted that did not happen and how much more production could we have gotten if you have had a more classically republican, will industry president in office? carol: behind every interview is a photo spread. >> we shot almost everybody featured in the magazine, i think, 1% of people do not end brush one person we did not in the shooting was because the rickety married the next day. almost everyone agreed to be shot, which was amazing.
it ended up being i think six photographers around the world, the main photographer who we have worked with quite a bit shot people and i think there were 2.5 weeks where he was traveling every single day to shoot these people involved. carol: talk to us about the delta ceo. they must of love because you guys were in the delta museum. >> yes, that was one of the first one we shot. they suggested the delta museum. the photographer who did the bulk of the images went there the day before and scouted and a great claim. i do not know if it is going to work or if it will feel cheesy and add was so lightly and energetic thatso we ended up getting great images of him gesturing and talking in front of the plane and it is
♪ carol: welcome back to "bloomberg businessweek." david: you can hear us on the radio on channel 119. york,n a.m. 1130 in new washington dc in the bay area. carol: in this issue, talking about the economy adapting to a changing labor market. >> this is an interesting case, because this is one of the first companies that employed on demand work.
and they have stuck with the idea of looking at task rabbit booking workers of all kinds and it has made a difference for the companies that have taken the model and applied it later to specific work, like uber with driving and handy with housecleaning. and task rabbit was one of the first and has languished a little trying to remain broad. david: that is something that you talked about with her, the breath of the company. what to say about the complexities of running a company like that that does so much? >> thought it was interesting that she said it was both a lesson and a curse. something that has helped them with tax revenue is it is a multipurpose 54. on the other hand, i think they feel they have lost out to more specific platforms because it was not always obvious how task rabbit could fit into your life as a consumer.
so she talked about the advertising push and it has been focused on only a few categories, doing chores, deliveries, housework, and really trying to help the consumer understand how task rabbit might fit into their life. david: she is the ceo a lot of us have not heard about. who is he and how they should come to take on this role? she has an interesting back story. she grew up in detroit. she went to penn for business school and ended up working in finance and investment banking. and she went and joined google. she worked in their finances division and was with the company for nine years. sheryl sandberg has been a mentor for her at the company. she works in india, not just the u.s. and when she decided to leave google, she told me she wanted to look for something that was a lot smaller where she would have a chance to make a difference and really felt drawn to the task rabbit mission.
she joined task rabbit as their coo and worked very closely with the ceo and founder who is now executive chairwoman now that they have made the switch where stacy is the ceo. grew up in detroit, daughter of a single mother, african-american and something that she talked about, the importance of her running a company that has been its employees, a representative amount of african-americans. >> i think this is one of the most interesting things about test rabbit is a place to work. it is already 12% african-american which is far beyond what most tech startups are like in silicon valley. and that is not enough. she wants it to be 30 -- 13% to be representative of the u.s. population at large. she says one of the things that makes it easier for her company to record african-americans is that she is a black woman, a ceo
and has a visible role. and she talked about her authentic self at work. i think it is really hard to pin down what makes task rabbit able to do that, but it is a very unique think in silicon valley to be at that place and wanting to go further. carol: also, a conversation with roger snow. >> it is basically like "texas hold 'em", but it takes a lot of these decisions and basically it is a simplified version of the game, so people that are not masters of poker can sort of sit down and get pretty good at it. a lot of these games are basically like that, they take over, there a million directions you can go with your opponent in these games tram that down to a couple decisions. david: how did roger snow get into poker and come to believe that there was potential for widespread commercialization of the game? >> he had a short stint as a journalist.
he moved to las vegas, kind of like a lot of people do, hoping to make his fortune. he got a low level job at a casino, an analyst job where they are basically looking at the books and he noticed that the casino he was working on was paying these sums of money to a company to rent these games. and he said, what is this? why are we paying for these games? he got curious how you invent these games and what makes a good one and went from there. david: let me ask you about that. what makes a good game? what makes a game that people want to get good at? want to try to make money at? there are different philosophies. snow believes in a lot of things. one is the idea of volatility. so basically, so people think the key to a game is simplicity,
you want to give people a chance to make money easily. he found that is not the case people are not just looking to make money. there is a certain kind of dopamine hit they are trying to get through this process. games that basically allow you to change your position pretty quickly, so if you are behind you are able to catch up pretty quickly, if you are ahead you can still press your advantage. that is what people tend to enjoy. he talks about volatility and he tries to build that into the games. he also talks about intricacy, games were certain decisions lead to or foreclose other decisions. you really do not want things to be too simple or too easy. you want there to be the sense that you can master something. you do not want it to be too hard. you want to be able to get better at something. carol: up next, the mega-money pouring into broadway. david: and mtv dusting off the classics for the next generation. ♪
♪ carol: welcome back to "bloomberg businessweek." in the companies and industries of you -- section mtv decides to relieve relive the good old days. >> people is a library of 2 series.different things like "date my mom." these are clips from awards shows. interviews of celebrities, anything that has appeared on mtv or happened behind the scenes during the taping of something on mtv is stored in the fall. and mtv has spent the past few years going through and deciding what they want to keep and what
they do not care about, and what in particular is a high profile footage that they want to digitize and make it so that they can search and pull up anytime they want for any show for snapchat, youtube and sup with. david: so this is mtv classic, so what will that be? a place to show the old episodes of beavis and butthead, or will it be a highly programmed curated channel for people to watch? >> deeds will be primarily classic footage, as you say, old episodes of trl and darya. i think it will try to come up with some fresh programming that will bring people and so it is not purely nostalgia at play. there will also be licensing of other people posing movies and tv shows on that same time, but they really are focusing on that stretch of the 1990's and maybe some of the 1980's and to thousands that was mtv's heyday.
that is the change over to classic, the small stuff in this broader utilization of people. -- of the vault. this is a small step in the utilization. i first found out about it 1.5 years ago and ever since then, mtv said we have to wait and we cannot do the story yet. and i would reach out and say, can we do this, please? i remember sitting in going onto snapchat and they had a clip of eminem from total request live, one of his first appearances and i knew that had to be from the vault so weight interviewed -- e-mailed some of the tv and they said, please wait. now that footages being repurposed for the pilot episode, which could air on mtv, which would be going back through the year that a particular artist rose to fame. the pilot is of eminem, so imagine, eminem in 1998, 1999. carol: and looking at how broadway has changed over the last 50 years. >> we wanted to find somebody in
the world of the arts. i think we have a couple of those on the list right now, but there was an idea early on to do pioneers, that is much as we are trying for various age groups, that there are some people that have been doing things a long time and are still working. we thought about a couple people in the theater world specifically because broadway has been very top of mind for people with "hamilton" this year and it is a business. what we see the fat are the quirks of the business, smashes of success, prices being what they are with the original cast and now we have reports of what is happening to the ticket reports like scalping. we tried for angela book, and prince was another one. that one worked out. the other one, the timing just
did not work out. jim and i are huge theater fans and we thought theater would be the way to go. david: he is a pioneer for sure. you talk to him about how he got started in theater. he essentially takes an unpaid internship. how did he get started? >> he stumbled into it. maybe georgesaid, abbott is looking for somebody in the was a time when george abbott was one of the most successful producers on broadway in doing musicals which prince did not think he wanted to do. he is very smart and i'm sure many people are in the theater world but he had this very high-minded idea that he was going to do theater. it was really this opening into a world of musical theater and successful musical theater that george abbott was doing, and so that opened up the world for hal
prince in to find the path he was going to go on. he came back when he was studying the terms himself, directing of producing to really going after something that was challenging, that was surprising, that had taste. used that word with me a lot, that taste is important. that was interesting to hear him say. it was groundbreaking. david: did he have a vision of what he wanted musicals to become? you mentioned maybe he did nothing a lot of them are good and did not have the taste he was looking for. did he have a vision of where they could be? >> sure. he thought there could be a real story. it did not just need to be a bunch of strong's strong together. he wanted there to be a message. the message could be about love. a lot of the musicals and productions that he has worked on are at the core love stories. there could be a political message. cabaret has that with the rise of socialism and what was happening in germany.
so i think he looks for stories , and it is not just, here is a person who knows how to write a great tune and it is a catchy tune in if we connected to 10 other catchy tunes, we have a show. there needs to be something more there. carol: bloomberg businessweek is available on the newsstands now. david: what is your favorite story this week? i suppose your favorite interview is an option as well. carol: i do like a story on mtv how they have gone back to the vault in the old footage in bringing back the whole generation back. digitized all of it and there is a whole undertaking. how about you? david: i really liked the interview with mark weinberger, the ceo of ey. this thick accountancy, big consulting company. carol: millennials. david: no, that is the case, hiring a lot of millennial workers a huge percentage of the , workforce is very young. carol: ok, lots of great stories and interviews. see you next week. ♪
♪ angie: coming up, the stories that have shaped the week in business around the world. the bank of england setting a post brexit direction while japan has another fiscal arrow. >> the shakespearean tragedy of abe. >> the july jobs number, what message will send the feds? >> what is not holding up is business investment. >> and all eyes on earnings this week. >> a great quarter across the board. >> it is reshaping the earnings mix.