Copyrights. The court ruled 63 in favor of he broadcasters. Ice scalia wrote but what is the future of pay tv with this decision . I spoke with John Erlichman who has been following the story from the very start. And joining us is bloomberg contributing editor paul kedrosky. His ted by asking bill take. From the very beginning it was going to end up in the court system. Any type of telecommunication threat, whatsoever, you have two large institutional masses that know how the litigate and lobby and win those types of battles. If you go headstrong into either one of those trying to disrupt, youre going to end up in the courts, absolutely. You have this big investment in uber. Surely you guys have thought about it from the very beginning this is going to run into the commission kind of issues. There is something very ifferent about municipal regulations and federal regulation. In municipal regulation, it is very easy for a mayor, a city council to stand up and say you know what . Those laws may be outdated. Maybe we should revisit them and rewrite them. That has happened in d. C. , california, colorado. That is much harder on a federal level. We tend to have these laws that have existed for 200 years and the Supreme Court tries to retrofit them. It is a really big question whether there is aver moment where our federal government can stand up and say hey, it has been 200 years. Maybe we ought to start from scratch on something. The court tossed it back to congress and said congress can deal with this and could. Paul, let me ask you, aereo said it is not just about them but Cloud Computing itself. They took issue with that and said that the implications were ominous. The majority of the opinions saying it shouldnt quount the cloud saying it could be different. This is going to be used against the clout anyway. What does this cloud anyway. What does this mean for broader technology, paul . I think it is really important for broader technology. I hate to say this. I kind of agree with Justice Scalia on this one. The majority said this is a limited decision specific to whats happening here and really shouldnt be seen as having any direct implications with respect to cloud services. Stice scalia pointed out if looks like cable tv, we have rules like that, it must be cable tv. The result is it doesnt recognize that the Core Technology has changed. In a sense, it is very anti innovation. If it looks enough like the thing that came before, moves someone from point toonch point before, it transmits content, it must be regulated. We look to provide the same thinged a lower cost or much faster or something else. It is not like we tried to do a completely different thing. Innovation is about doing the same old things in different ways. The part of decision that really worried me. Bill, the notion that this could go not just aereo to the cloud and beyond that, is that a concern . It is not something im particularly worried about. A lot of cloud applications would be ones that were media and were vastly moving to a world where no one owns media anyway. They stream it. It doesnt seem to be with the case s that aregoing on. I think the aereo team brought that argument to the rather than that being an issue that people are particularly what are the issues for Enterprise Software and things like that where there are copyright issues. They might want to charge extra in this court decision. It clints it might get closer to that. Lets just hope that every single startup doesnt find themselves needing lobbyists. That would be a horrible outcome. I was asked on an earlier show if this was Northern California fighting southern california. The entire possibility of san diego existing. Silicon valley versus l. A. What do you see as the stake holders here . I think it is very much that kind of case. E pirate upstarts take a monolith i think it is very much the same thing. Monolithic providers of Service Providers say we need three or four Provider Companies and the rest of us should expect all of this content to come through licenses providers. The cash streerms and all of these different bits and pieces. I think these are two different views how the world should look over the next 15510 years. 510 years. A small group of people providing all the content to everyone else. I think that model is breaking down in the same way that the uber model is breaking things down. Dealing with the problem one musice palt at a time. Municipality at a time. If someone came and said i have this great idea on a new way to present television shows, cable tv, new, you know, netflixlike or something, i dont know. Does that make aless interesting investment to you . I wouldnt call it the ruling today. I would call it the powers that are in effect in that market which paul just referred to. Ke any of our most regulated industries, finance, healthcare, telecom, media. Were getting to the point where there are four large providers, three large providers. Look at dodd frank which was supposed to help the consumer. Checking competition. It has gotten way worse since dodd frank. The number of banks is on the rise. Free checking has gone away. Innovation and regulation are definitely at odds with one another. I think this is a bigger topic. That democracy and capitalism kind of corrupt one another if they get to spend enough time together. You know . Capitalism corrupts democracy and democracy corrupts capitalism. So these heavily regulated industries are mine fields for startups because Market Forces are not at play. John, you have been covering this aereo story for quite a while. What do you make of todays ruling . Obviously the broadcasters are pleased with this decision. I dont think what is going away, you guys talked about this already. The reality that people want to consume video and content and tv and movies in a whole bunch of new ways. I do think, though, at the end of the day, the broadcastest feel like beyond all the subject surrounding the cloud and Cloud Technology and what this says about the limits perhaps for Cloud TechnologyGoing Forward that this was always a story about stealing a signal, that others are paying for, and getting paid yourself for it. You know, i still think there is this as this continues to potentially play out in a lower court, well see obviously what happens, the question of whether or not there could be some kind of compromise between aereo and the broadcasters, certainly that would involve money and the company was always very clear that there was no plan b. That they didnt set up a business whereby they would ultimately be paying these fees that broadcasters get. But it is something to watch, for sure. Billings let me ask you, it would seem to me there is actually great opportunity in these places where there is a lot of regulation. That the businesses are in some ways more rife for innovation. They have been protected from it for so long. Some of them get really good at protecting themselves. Imagine, you know, if you look ited a your senior teams top talent and say where are our best people . What are our competitive advantages . Take a company like comcast, for example. You look at their policy group, these are some of the leading executers in the exeand i would argue that many of them, their ame ability to control lobby and regulation is their core. They dont call the Marketing Department or the Product Department and say we need to hustle. What features should we lease . They call their legal depts. I feel like we were at the same conference and the c. E. O. Of verizon was there and he was asked a question about blue tooth and he didnt know what it was. It seemed amazing that someone running a telecommunications didnt know what blue tooth was. Absolutely. Silicon valley isnt, you know completely thoughtless in that everyone here likes to believe that if you can something with technology then you should be able to. A libertarian. Well, if i can build a technology that will steal all the content that people legit may paid money to create, that should be ok. That is probably not right either. Makes a major push to put android everywhere. Were going to tell you about googles effort to rule everything from your car to your tv. Welcome back to the best of bloomberg west. Im cory johnson. Google just held its annual developers conference. They unveiled a new version of their android software, android l. Smart watching and android for the car. Jon caught up with Patrick Brady and asked him about android auto. Android auto is a familiar android experience but it has been redesigned for the car. What it allows you to do is control the Services Running on your android smart phone through the familiar car controls. Steering wheel buttons. Consul dials, touch screens. It allows you to see all of your display information. You can see live turn by turn directions through google maps. Controlled through the cars controls. If we were to boil this down to three things that people need to know about it, what would with one of them . The first one is that it is voiceenabled. A safer way to use your smart phone in the car. You dont need to take your hands off the wheel or your eyes off the road to be able to control android auto. You want to play a song, say play whatever the song is on pandora and android will cue that up for you. If you want to send a text message, you can do that all through voice. A second feature, you talked a lot about it knows where you are. Yeah. It is completely context aware. Obviously when you connect your android smart phone to the car, it knows youre in the car and driving. Ve we will show you things that are applicable for the drive like accidents that happened up ahead. Traffic information. Your next turn that is upcoming if youre using navigation. It is context aware and shows you these things. It also knows right when you get in the car what your most likely destinations are going to be or most likely contacts are going to be based on the patterns of you using this dwirkse not only when in the car, device, not only when youre in the car, because youre connect and it learns from any sources, a trip that youre taking on the weekend, it will have the station cued up for you so you just tap it and go. The world of apps is a big one. Obviously on your smart phone you have a big inventory. How does that factor in . I think the big thing that were trying to do is capture the power of the android ecosystem. And make it as easy as possible for developers to bring their apps into the car. Not all the apps make sense. It doesnt make sense to be playing flappy birds while youre driving. Perhaps whether it is pod cast or news or live sports or radio, whatever it might be, we really want to allow users to use all of those apps when they are driving. Similarly messaging apps. Not everyone uses the same message services. We want to use the completely Voice Enabled experience in android auto. That is what were opening up today. That was googles engineering director with John Erlichman. Just weeks after saying women made up 30 of its workforce, google is pushing for women to code. Well week is with megan smith, the Vice President of googles secretive google x. Welcome back to the best of bloomberg west. Im cory johnson. Google has been working hardin creasing gender diversity. Trying to encourage girls to get into coding. We caught up with megaan smith, Vice President of google exmp. X. One thing is concerning is that only 1 of High School Girls are expressing interest in coding, and yet all the products they love are made with code so we launched a program called the things you love are made with code focusing on bringing High School Girls into this industry. These are fun jobs and girls think they are for the boys and they opt out. We have announced 50 million of marketing and partnerships and other things across the next three years to really help bring the girls in. There is 1. 4 million new jobs coming in our industry and we only have 400,000 people to fill them. We need all the young people to know what fun careers these are. High impact careers, things that matter. When you look at an event like this and still see a lot of men, but the numbers of women who are here have been climbing. Have you noticed a difference over the years . Were doing an outreach making sure women feel invited to i. O. Last year we were only 8 women attendees. There is a lot of women in our industry. We just need to get them here. This year, we were over 20 . Beyond getting them into the industry, what about the executive level . Google put out diversity stats. I think the numbers roughly 1 5 of the Management Team being female . Yes. In general in technology, we actually have slid backwards from the 1980s with technical women going from 40 in the 1980s down to 15 and at the executive ranks. We just really have to do a push there ore women in and is many bright spots at the college level. Moving back to 30 . By changing curriculum and making it more impactful. The young women were not seeing coding was impactful. They were choosing other careers. When media focus on female c. E. O. Stories like a lot of people talking about marissa myer oversleeping or missing a meeting. What kind of message does that send . Im sure there are many c. E. O. S who might have overslept and missed a meeting. Marissa is terrific. Were working on advancements of women. There is a lot of unconscious bias in the world. When we see it, we need to debug it and work on it. An example would be data training with everybody. For example, if you have 10 characters for a job, on average, men will apply if they have three and women will apply if they have seven. There is a group with their hands up and a group with their hands not up. Anyone of them might be someone to promote to the job. Once you see your bias, work on programs and things that can help you. Part of that includes releasing our data. So we can see ourselves and know we want to fix this problem. In the world of google x, there is a google x presence here. Tell us about it. We also law firmed a product called solve for x. X is what youre passionate about solving in the world. In addition to our products, were looking around the world for incredible tech finders who have great ideas. We have invited seven of them here. They are presenting fast proposal talks and then were reporting. One of my favorite ones is about to land from ethiopia. He has android tablets in a village in ethiopia where no one can read within miles and he is teaching the kids how the read. Can they learn how to read themselves . Can they teach other other . Each other . Do these moon shots eventually make their way into google . No, you just want to see everybody focused . It is to use technology to make the world a better place. We have these moon shine ideas. What really can help with traffic and medicine monitoring, the contact lenses. All of these ideas. We are on a mission and there has always been tech pioneers, all of these people who solve things in the world. Solve for x is our passion project. Find our colleagues out in the world doing this and try to amplify people doing this kind of work. Often when youre doing this kind of work, you dont have a lots of support. Some people think youre crazy. Sort of like elon musk four or five years ago, people were like the rockets are blowing up. Spending all of this money. Now look at him. We have a lot of problems in world. We love to use technology to solve them. Just a final question on google glass. The team that is here, it has a presence here. It wasnt part of the keynote. How come . I dont know if im the best person to answer that. I think were really we were so excited about glass and my favorites of the glass explorers and the things they are doing, some of the enterprise things, you see irvine giving glass to each of the incoming medical students. The things that were going to see. Crisis response. Maybe we feel like that is ramping and the team was working on some of the new stuff that is coming like the automobile platforms. Cloud platforms, etc. That was megan smith, the Vice President of googles secretive lab, google x. Will americans newfound love of soccer change the business of the beautiful game . That is next. Welcome back to the best of bloomberg west. Im cory johnson. 25 million americans tuned in to espn to watch the world cup between the United States and portugal. It was the mostwatched soccer game in u. S. History. Will the world cup come into longterm ratings gold for espn . The former ceo of the San Francisco 49ers joins us. I asked why this world cup is capturing americas attention. We have never lost a party. There are more butterflies and soccer stomachs and ever before. The ratings are great. The u. S. Gets out of this group hopefully we will have a Record Number of people watching in this game against germany. They will build as a move through the world cup. One of my mentors works at sports illustrated, he has try to get a big soccer magazine off the ground. Numbers weree the there back with my generation. It never really took. I happen to be involved in the old north american soccer league. The new york with cosmos spiked soccer interest. It is an overnight success that has taken 50 years. This is a Good Business plan that mls has. Their Business Plan is they shrunk the stadiums. They are selling out. They created pockets of incredible interest. The asset appreciation of the franchises has increased. Manchester united and the yankees sold for 100 million. That is in the u. K. No, this is in new york. The expansion franchise that will play in new york city as a joint venture of manchester the new york yankees. Other franchises are moving in the right direction. You were involved with the memphis grizzlies. I have been looking at the Sacramento Kings a lot the cubs of the new Ownership Group there. Because of the new Ownership Group there. Secondtierout cities and making the numbers work with sports. What are those . S