Here in san francisco. The manufacturing. The logistics. We work with Tech Companies and hardware startups. This is in exciting space to be. Back in 2000, you are mr. China. Are you mr. China. For anyone who has been in china, you know very quickly that you know very little about china. I know as little about china today as i did when i went the first day. It is such a big space and so complex. We had fantastic people on the ground who were able to execute. That is what we do. Does it matter if you are mr. China anymore . What has happened over the past decade is that you used to go to china and build one million things. A million routers ipads. Now you can just told one thing. What is happening that is allowing this to change . I dont think it is a geographic thing. I think we track data of our products that moved from production lines right through to the consumers home. We try to replace inventory with data. It is not necessary about making one million things, we just want to make what there is demand for. Sometimes you dont want to make a million things. He just want to make what people would like. When you shrink a supplychain, and in some cases some of the Bigger Companies would have a supplychain to take a product from a production line in china to a consumer in the western world and take up to three months. We can do it in six days. And we have done that for some retailers. We have taken a product reengineered the supplychain, and taking it from reduction in china to the retail source in six days. From production in china to the retail source in six days. We do it based on demand. So the these guys are probably going to be thinking in more entrepreneurial terms. What does it take to be a success in hardware right now . Is very interesting when we look at our startups. When we look at the applicants that supply to come into, we are looking for the same thing that any incubator or accelerator are looking for. We are looking for a great team. We look for in a team. You can have a great idea and products, but if you dont have a great team to deliver, it will not happen. We look for a great entrepreneurs. We have been fortunate to work with phenomenal entrepreneurs with startups. Recently i wrote about how you guys partnered with radioshack unit in my experience i have not been in a radioshack since they stopped giving out battery cards. [applause] i believe i still have some. You guys recently partnered with them. From my understanding, you are going to put items in stores. But you have essentially changed the entire supply chain for them. Yes. I spent 10 years in the retail business. Before i set up pch. In retail there are very different types of retail. Theres destination and highspeed retail. When you look at typical cell phone carriers stores, that is a destination retailer. If someone walks into a destination retailer, they are going to get a cell phone. That is what they want. The products that we work with that is not what we want sold. You want them sold where there is a better experience. Today Consumers Want to have a great experience. They want the entire experience if they are going to brian buy a product. We think that radioshack is a company that can actually do it. Joe and it seemed there have been phenomenal to work with. They understand highspeed retailing as opposed to destination retailing. When actually walk into a high street store like radioshack they are more open to browsing. That is where we can actually create a much better environment for startups to display product. To do that first the most important thing for me was that we created a lien supplychain. For our startups, they wanted to put into his inventory into Distribution Centers around the world. If the capitalist is tied up in a warehouse, then it doesnt matter if it is ecommerce or retail. Some of these companies have 20 30 warehouses. For a started to actually enter inventory in there, it is a huge risk. We have one center in china three hours from factories where we work, where 90 of the consumers apply the product around the world. We wanted a lien supplychain. We did not want to be in Distribution Centers. When you can send an astronaut to the space center in six hours, you dont need Distribution Centers around the world. So from radioshack Distribution Centers, etc. Any weeks to take a piece from when we look at the supplychain, we look at their end to end supplychain. It can take three months. We are not doing it for Radioshack Stores in about six days to the store. Across the whole range of products. Not just our own products but other products. That has released quite a lot of capital because it is coming in set of having it kind of in the channels direct to the store. I remember used to work in fashion. For 10 years you did fashion before you did this. It is not very similar, is it . Is interesting because the convergence of fashion and technology is an interesting space. Especially to highway one companies. At the end of the day, all businesses want customers of some sort. Lets talk about highway one. Highly one is an incubator that you guys just recently started. You are making money hand over fist selling products for Companies Whose name begin with a and l and e. Why did you do something for hardware startups . Product innovation and hardware startups are challenging. The companys popular five years ago, and the pace of hardware innovation is very slow because you have technology roadmaps. Product roadmaps. That can really slow down the whole bringing in ideas ready for a consumer. We find that actually working with this generation of why not entrepreneurs, but actually venture into the hardware space, they want to go into the market. We find that in this space, and experience is a phenomenal innovator. They will ask is, why not . Why cant i think it direct from production line to the consumer . Traditionally companies would not ask that question. They have too much experience. They were too conservative good we like the whole disruption that comes with the incubator space and highway one. And the way entrepreneurs think. They have a fantastic cando attitude. Bringing a product to market is very lean, and it is one that i think any company today, for me this is probably one of the most dynamic things we have done as a company. It actually forces us to be able to react to the startups and to be able to when they say when can we do it . You have to think ok, when can we . You have to ask questions that Traditional Companies would not. If these guys are the big guys, the old guys are exhausted. They seem exhausted. Sony is on its last legs. Samsung is hanging in there. What is the future for those guys, making 500,000 or a million units. Are they going to be able to sell those . What is the way forward for them . For us, being nimble is so important. You have always talked about the money curve and being at the high end of the curve is where we are focused. Engineering and product development. We have retail distribution relationships and the block where we actually sell products. We have been at the bottom of that curve and very focused. For me, we enable startups to take a product from a production line to a consumer, with the same service as a big Company Without having the burden and overhead to do it. To me it is one of the great enablers for hardware. Tell me about some of the highway one guys you have been talking to. Blaze is a bike like that he featured. Did you buy her company . No. Please is out of london. Fantastic entrepreneur. It came to our access program. As did little bits. Again, a great entrepreneur. They have these great ideas for products. They actually take the products and come up with the ideas. We love to focus on companies that understand design and that really invest in designs. We work with companies passionate about designs and brand. They are passionate about the consumer experience. We manage the entire process so we can delivered a great deliver a great experience. It comes down to parties of one. Anywhere in the world we can actually monitor a product that is shipping and manage the experience. We do it with a company like blaze. They were very focused on design. Emily was very focused on making sure there was a phenomenal design. What other cool stuff did you get to see . This week we are shipping a product, a raspberry pie computer. Again, these were all products. Did you and bill young go out and write the rain . [laughter] weve got lively, watching a watch today, for helping parents if they are living alone. If you want to help them extend their time in their own homes so they dont have to go into care. His is one of the best products we have seen for models for working at home remotely and families feel comfortable they can stay connected to their parents. That is a great one that Just Launched a watch connected to the hub and the family. So if they fall down, they press a button . Yes. And it is one that you can wear, a stylish one. And an intelligent George Foreman grill . That is another great one. There are connected scales for baking. To an ipad. What you like better, making a lot of stuff for Big Companies are working with these guys . I just love the energy that comes from entrepreneurs. That is what is really feeling innovation. The Big Companies are really attracted to these startups that we work with. Sometimes they are very envious of the process that we take them through. You are absolutely certain you are not being paid by Big Companies to destroy Small Companies . [laughter] if you want to nod or whatever. We are champions of innovation. So you are helping everybody. I have a couple of last questions. If you look under your chairs, there are apple iphone 6 is there. Is what i wanted to say. Liam does some work for these guys. We need to discuss specifically the iphone 6. You have one in your pocket right now. Are you going to give me one . The iwatch, do you have one for me . Cant hear you. [laughter] how does it feel to hang out with will. I. Am . Another hardware fanatic. What are all of these big guys, bono and neil young getting into hardware for . There is a huge interest in hardware. When i was in the fashion industry, i would go to a fabric mill and by small buy small roles of fabric. You could make any garment you wanted from that role of fabric. When i got into technology, i was so far from what you could do. You could never you had to mwait months and years for new technologies. So we saw innovation where it was a downturn in engineers here going into the garages. They were starting to prototype products. They had we noticed that they had tools for the fabrics of technology were changing. Today you have connected modules , which is phenomenal. You have 3d printing and androids. Now you have the fabrics to actually prototype. Everyone says there was a renaissance in manufacturing. We think there was a renaissance in prototyping. That prototyping generally came out of Energy Around creativity of fee is physical goods. That is where we actually play and what we look for his entrepreneurs i want to build companies around that. That is where we are always looking for. Today, you can sketch a piece of hardware and then in a very short time, you can produce a prototype. You can somebody a prototype and it is far more convincing than a powerpoint presentation. Liam casey, pch international. Thank you very much. Give this guy around of a pause. A plus. [applause] it would be kind of hard to believe almost that watching other people play video games could become a business where its almost a billion dollars. When i was a kid, they would have called that the couch. These guys have done it. Please welcome twitch founders, and our moderator. Thank you for joining us. The first question is, for the last couple of months i think the assumption was that you guys had been purchased by google. All of a sudden we get this news about amazon. How was getting that set up . Everyone assumed google is the way it was going to go down. It seemed like a natural fit. Why choose amazon . It is an easy assumption to make. Your natural assumption is. Amazon is really great fit for us for a couple of reasons. We pitched them, we talked to them about our future and talk to them. They pitched us on what they thought their future was. We got to get that meeting of the mines on gaming and where we got gaming was going and how we saw the future of the gaming industry. We really had the same vision. We also had a shared vision for it being twitch that did it. We assumed we would be a powerful independent rent. Amazon has a great track record of buying companies that way. Look at imdb which they bought 10 years ago. That mimi really except that that made me really excited to have that level of experience. What is the vision of what you think gaming will become . If you look at the history of gaming and go back to the very beginning, you have this very social atmosphere. People gained in arcades. He spent most of your time waiting are watching someone else play. That was the start. As you look at where video games have gone over time, we have gone from a social shared audience, interactive experience. It was to something you play at home. We see a reemergence of the arcade but at this scale that millions of times your than the arcade ever was. You can fill whole stadiums and get massive viewership online. We see that as the next phase of gaming. Single player, multiplayer twitch. We see it as a new mode you can interact with video games. Amazon really also sees that future. They see this feature off videogames as becoming increasingly networked and social. That was sort of the future that they bought into with us. Fun fact. The first story i wrote at techcrunch is how google would avoid ruining twitch. The issues gaming gamers had at the time, on reddit and twitter, was the content id system. Someone streaming play and playing their own music. A curated experience. They were worried that content id would he use all of their videos and ruined the appeal for their audience. Content id isnt necessarily a problem any any more now but as you guys are a multibilliondollar enterprise now it seems like it will be a big target. Are you guys letting people distribute copyrighted material . How will you guys deal with that . If you look at the situation they let you use upload videos through websites. Figuring we are in a fortunate position where because we have a very specific set of content we encourage, because we cannot limit that and stick with just gaming content we are urging and have to work with Gaming Companies excited to have people stream their games because they have a functional business model. It hasnt really been a problem surprisingly. We are a generalpurpose video platform. It comes up a lot. When you come with something that is specialized like twitch, you can really secure those rights. You do have a system in place for monitoring whether people are using copywriting material right . It impacts less than 20 of our videos. It is out there, but it is not so 20 of videos. You have a lot of people streaming. Then there are the big league of legends world tournaments. Where is the 20 impacting . Evenly distributed. Roughly. Once you get down to one or two streams, you cant get down to 20 . It is not let one is a fixed set of users. Video and demand is different from life. For variety reasons. Has you manage people expectations . I think everyone on the internet recognizes that music licensing is a real thing you have to deal with. They may not like it, but it is just a fact. So the other big thing when google was rumored to have acquired you guys, was the google plus profile. With that said, that is clearly not a problem now. Are you guys thinking of amazon ids . We are excited about the potential is we can work with amazon. There are a lot of obvious places about about synergy. Our attitude is not where we have to do xyz, now we had the opportunity. We can put our Engineering Team with theirs and get together. We can put together the music Licensing Team and have the opportunity to see if it will make sense for both companies. We will not force anything, though. Those are the back end of things. I think some people are concerned that twitch is going to becomepeople dont want twitch to become something where you see if the game is something you want to buy. I thank you become an native advertising are you going to become a native advertising platform . I would say we already are. We already are the place you go on the internet, our entire website and seven cents is a native advertising site for video games. We already tried. Our partners already use Amazon Affiliate links along with a variety of other places you can buy video games. They already sell videogames through their channels. We dont currently supported, but it is some thing where our partners have come to us and said, can you help me sell videogames more. I think we will be doing a lot more to aid our partners when they want to. There is a difference between that and becoming a storefront for amazon. If amazon wanted a storefront, they could build it themselves. But what they see is an Awesome Community of people who love video and gathered to celebrate that and celebrate the experience share the experience. If you make it into a storefront you destroy what is great about twitch. Am i going to be watching a stream and go on amazon later and say, you might be interested in this . We have not discussed data sharing like that. Who knows what the future brings but i dont think that i dont think it is that exciting. We start from, is it something that our users want and create a kid experience. If the answer is no, it is not that exciting. By the way, you can buy this right now with a discount, that can set that broadcasters want to offer. And viewers are probably like, we might go with that deal. But we will not force synergy data, i just dont think is that affected. Effective. It seems like amazon expects events again to get a lot bigger. Where is the growth going to come from . One of the most important things is, we have thrown a lot into pc. We have started growing a lot on console as well. The two xbox one and playstation for integration we did. Theres a huge room to grow on consoles because these new generations they dont have the problems the last generation did. We expend expect to see a lot of growth on consoles and continued growth on pc. We also expect growth on mobile as well. We are creating growth in the top mobil