The Supreme Court is taking a pass on hearing a case collection the nsa of american phone records. The court rejected an activist position to bypass the at traditional appeals process. Any changes to the nsa Surveillance Program have to go through congress. Twitter is diving deeper into android. The company which was launched in october makes an app that allows Android Users to create customizable screens on their devices on the cover team says it plans to produce something even better. Dropbox has obtained a edit facility of more than 500 million. The Financial Times says the Storage Company will use the money to set up a data center and expand globally. Dropbox earlier rates free hundred 50 million earlier this year. Cory johnson is with me now talking about yahoo and the fight to dominate content. Yahoo wants to buy original series . Its amazing how Many Companies we see who have the same interest in infrastructure. Looking at original content to try to drive people to their sites for all the other stuff. Yahoo have been doing short form stuff but they are looking at 10 episode shows that my cost 700,000a few Million Dollars per episode. Workl these businesses headed toward search. Now they are going toward this original content business. Can you only watch it online . We are seeing but the success that netflix has had drawing customers. These other companies are saying we want those same people and we got the cash to spend. At the same time, netflix has produced a number of hits and amazon has not named one yet. Erlichman who jon recently got a look inside the Microsoft XboxEntertainment Studios and microsoft is making its own original series with the likes of Steven Spielberg. Tell us what you saw. Its a pretty fascinating story. A yearandahalf ago, microsoft producer forknown the longest time, everyone has been asking what does that xbox team working on . They had not said much until now. We got an exclusive look at what they have been doing behind the scenes. Here is a taste this lowkey Santa Monica Office building, microsoft is plotting its tv future and it is tied to this area and xbox Entertainment Studios is a unit of xbox created to make original tv shows. This is the start up with the help of microsoft. Theyre t nancyellum, developing all sorts of shows. A Steven Spielberg series, robot thriller, plant life coverage of the bomber room Music Festival bonaroo Music Festival. To watch, you will fire up your xbox and if you are one of the 48 million members of its Online Entertainment network, you may be able to stream xbox originals. Strikeft may also partnership deals to distribute some of the shows outside xbox. Shows will also be interactive. You will be able to do funky stuff gamers like to do that is different than lying on your couch watching cable. Microsoft is doing this to keep xbox loyalists happy but also to broaden its reach. Its estimated each xbox sold is worth 1000 of purchases to microsoft between games, shows, and xbox live, a number that would climb. They have a goal of making xbox one the anchor of its Home Entertainment network, connecting to other microsoft advices like tablets and phones. Thistional tv places is different. Tech office the youll come a pingpong table, wellstocked lunchroom, and we commemorate our successes by ringing the spell. , make that tves shows begin. For those curious about when these shows will start rolling out, they will start with this bonaroo Music Festival coverage and other shows will follow. Maybe the one where there is less developed is the one so many people are interested in, halo show being produced by Steven Spielberg. We will have more with nancy pellum, now president of xbox entertainment later this hour. What do you think of yahoo now getting into this game . Yahoo has tried original shows for a while now. Whenef we have heard is they make a show, where does it end up . There are different positions of our inside yahoo when you make a show, does it end up on the homepage . It still becomes a very important question. Yahoo has been trying to figure that out but as that is getting figured out, they know theyve got this time of year when you got to make splashy announcements in front of advertisers. Have something encouraging to say at a time when everybody is fighting for agile and traditional tv dollars. I think that is the back story of white yahoo would feel the need to pony up more cash for original shows. We have heard netflix warned about the rising costs of content and what that might mean for future shows. Ow much of a game changer is house of cards was and the viewing habits. . That has been an accounting challenge for netflix. They have had to pull the costs forward making the show more expensive. Yeah, the biggest problem with netflix will always be that we really dont know the specifics on how many people are actually watching the shows. I think netflix got a break from people who follow the company because their subscriber numbers continued to climb as house of cards was rolled out. You are right, it is clear they paid a lot of money for that show and we dont necessarily know how many people are watching it. That sets us up in this golden for highlevision spending by everyone who is hungry for content. The end result may not be a winning formula for everyone. Big starsyouve got in the shows as well like kevin spacey and robin wright, these are expensive talents. How does yahoo and everyone else keep up or is house of cards an anomaly . The benefit that these big players have besides having deep pockets is a different is different business models. If you go to the case of netflix, you are talking up boosting their overall numbers of subscribers. Orused to be a show lives dies on television based on how many people are tuning in and whether that is good for advertisers. For the xbox, if they can sell more consoles and get people to sign up for xbox live, maybe that is the metric for success. I think there is coverage to a certain degree for all of these potential big spenders in new tv content for it thank you. We will be right back with more of bloomberg west. Welcome back to bloomberg west. Microsoft is pulling the plug on windows xp support tomorrow. The most popular operating system ever. More people use it now than any operating system presently but with no support. Use it and atms theyre worried about Security Issues because of this. Tomorrow is the final security update for the operating system. How big a Security Risk will this be . Lets bring in the lab director at Cyber Security management company. Who still uses xp . 15 of Internet Users are still using windows xp. 18 globally and 13 in the u. S. Countries likeo china, more than 50 of users are still using windows xp. I was reading data from Microsoft Outlook my mind. In the last 10 years, in china, 70 of the users never supply and security update or windows xp. The real threat we are facing is not that microsoft is ending support, its about the laziness and stupidity of users. Lazy and stupid users could suffer. I have this image of hundreds of hackers in Eastern Europe and gettinga rest ready to attack because of the vulnerability. They have been doing that for years. Low usually go for the hanging fruit. Microsoft is not updating the patches. With atms, could they hack the money out of atms . Thanks put in security measures and usually the atms are not connected to the internet. Who is most at risk . Themselvesy, users and small and Medium Companies that dont have the resources to up eight upgrade to new security. One thing we see is bigger attacks at bigger targets and ways we have not seen before. Are we likely to see more of those because of this . Is it that the people who are not up dating, the 15 of users are not going to be the targets. Lets say we are making cyber crime we read the news that is going after people stealing financial information. How much does it cost to upgrade . You have to buy a new operating system. That is the best case scenario. If you are running all hardware, you will need a new version of microsoft windows. Facing the average implementation for a company to upgrade is 1518 months. [indiscernible] if companies did not have enough time to update and upgrade the systems, thats several years fo, probably they are not in a hurry. Tomorrow they will be at risk. We will monitor what happens tomorrow. Thank you for being with us. Tech companies play a big role in protecting your data, you can, too. Ande will give you tips tricks anyone can use to keep your identity safe online. You can watch us on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. And on apple tv. Welcome back to hope oh bloomberg west. Issues blew up, there have been a lot of questions about what we as average consumers can do to make ourselves more secure. We decided to take a closer look. The target and Neiman Marcus incidences shows what the risks are there in target is really really for the from this thing. They are suffering Serious Business losses. One of the biggest hacks in history. Brian white is with us to give us some of his tips and tricks to stay secure while online. Where does this start . What is the easiest thing we can do . Its great youre doing this. Many of the problems we can solve but just having consumers take control. I think about this as consumers understanding what the risk is and doing some rude and and necessary steps to secure themselves. By doing that, they can sleep a little bit easier about the cyber risk they read about every day. You say email and passwords . Thats the hardest thing. How do you do this . I say you start with maybe your social media sites with one password and your banking sites with something else. You have to go ahead and do upper and lower case letters and symbols and numbers. Those have become, that we have to be honest that those are very hard for many people to remember. Some are moving toward a phrase or word or sentence that you use the first letters of each sentence as your password with a couple of numbers at the end. How many different password should we have . You should have at least three. I would use one for maybe a media site reading the news and maybe for my social media sites which i am concerned about my most secure password i would put on my banking sites. In terms of using these, as people start to pick those sites, it is going to the strange and unusual site that starts to involve Download Software that gets funkier. Now you are hitting another issue. When you look at downloads, it is presumed you are guilty. You should presume you should not click on it and download it. How do you figure that out . Whyou need to think about someone sent you something. You can download that if it is reliable. If anything is suspicious, its easy to copy that link and put it into your browser. The browser comes up oftentimes, there is something in the middle and they can click through it. The link might say yahoo . Com and you click on it take you to an Eastern European download site . Exactly, that is happening increasingly on social media sites. Linked in and twitter because we are using those sites so often. They do something to the actual address and you click on it and all of a sudden, you have malware on your machine. Lets talk about browsers. What browsers should we use . I think Google Chrome is considered by most to be them most secure. Then you see firefox and Internet Explorer being number two and number three. Pc magazine had an article where they said it is hard to tell the difference between all of them right now. What is important is making sure you are taking the updates. What makes chrome better . It is a more stable platform and was built on open source code and has the ability to incorporate more security features and protocols, even how it opens pdf documents. It is important you have to make sure you do the upgrades. When you see the updates come across your desktop or on your phone, hit that update. If you are using an outdated , those are not secure. Which sites are most secure . There is a difference between attps and attp . Https is becoming the de facto standard. It actually enables encryption between the browser and the other browser. This is important in that that data as it moves is encrypted. That is something you see on banking sites and that has been adopted elsewhere. Make sure when you are on sites, https and if you dont see that, be reticent about what you do online. We are an amazing day when will being supportive but 18 of all world businesses done on windows xp. I wonder what are the best actresses for a company to make sure they are not exposing i wonder what are the best practices for a company to make sure they are not exposing themselves. How can they be reasonable about security . You have to think about how the network is architected and segment individuals. You have to assume your employees will hit those sites. What is concerned about leaving the network and make sure the browser you deploy and how you Push Software is always uptodate. Its your responsibility as the administrator to make sure the employees are using uptodate software. What about your phone . Do you get the updates on your phone . If you are on mobile, what other additional steps can you take . Make sure you have a pin and you can lock th device. Make sure you go ahead and put on your geo location even that even though that may drain the battery. You can erase the device if you lose it. The most important thing is dont download applications directly from the site. Move through the application store. Whether it is the apple store or android store, those app stores are developed to look at each application and see if there is any bad code in those apps. Interesting, thanks so much. Security 101, its amazing how many people dont do these things. It is simple and obvious steps, thank you, ryan white. Still ahead, well sit down with nancy tellem, former president of cbs and now president of xbox entertainment to talk about microsoft push into original programming and you can watch us on on bloomberg television, streaming on your phone, your tablet, and bloomberg. Com. Bloomberg television is on the markets. Its looking like the friday selloff is caring into monday afternoon and the nasdaq is seeing the heaviest selling as big names in tech and Consumer Discretionary and biotech stocks are being dumped. A couple of individual movers the Solar Company backed by blackrock is dropping its solar power project in india and those shares are down nine percent. It was canceled due to local equipment shortages and high prices. We will be on the markets again in 30 minutes. You are watching bloomberg west. Lets get to our lead story of the day Tech Companies and the fight for original content. We took you inside the microsoft santa monica studio earlier. Jon erlichman is back with more from l. A. And a special interview. Arrived atcy tellem microsoft, the tv team consisted of one, her. Now you have people in a bunch of different offices and headquarters in redmond, washington and vancouver and london but the key team focusing on the hollywood story is in the Santa Monica Office. I asked her about how broad the different tv originals xbox will be focusing on . We are dealing with serious, we are dealing with limited series or what i used to call many serious, featurelength projects, have our projects, short form projects, animation, live events, sports, news we cross all jobless. Genres, where you can find it is through xbox live. We are still trying to figure out from a strategic standpoint where it fits. It is something that is unique to our platform and it will be under the banner of xbox originals. Should be think about these shows being produced start to xbox ory microsoft or is it in partnership with other studios . We are open to all. We have an arrangement with channel 4 in the u. K. Where we are producing a series together. We can coproduce or solely reduce and bring in talent. We are very flexible with whom we will work with. Use showtime as an example. Traditionally tv, you think 30 minutes or one hour. What are you guys thinking about in terms of how long the show should be . For our platform, if someone comes and says i have a great animated series that i think can go for 11 minutes or 10 minutes or we see something that only should be nine minutes, thats all it needs to be. One of the shows you are doing is humans which is a thriller. Something else youre doing is covering a live event, bonaroo. There is a real range of stuff youre doing. What is the thought process between the kinds of shows you want to be doing . We are obviously starting with the focus of who is on xbox and who is using our service. Millenials and gamers at this moment in time that are both women and men. We are also looking and why they are on on our platform and how we can integrate the technology to make their tv experience much richer and more engaging. The you talk about bonaroo, ideas that many people would like to attend or maybe they dont want to attend but i want to listen to the music and avoid going to tennessee. What we are hoping to do that while it is well attended, i think they get close to 100,000 people, you can actually have a virtual festival in your own living room by being able to choose the station want to watch and have actual realtime interactions with the talent before and after their onstage using skype. The first look we got what might come out of xbox thertainment was halo signature game with Steven Spielberg producing. What is the timeframe for that show . We are in development on this project. We have not much to say about this one. On the