Walk. So the way youre going to present yourself in a way. And also in general it elevates you so it definitely transforms the body. And it gives you the perception of the body, you know . You have you have a certain conscience of your body and i think there is nothing wrong with that. You know, sometimes people tell me i cant run in these shoes. Rose you dont want them run. You dont also why would you want to run all the time . Rose bowman and louboutin, next. Captioning sponsored by Rose Communications from our studios in new york city, this is charlie rose. Rose bob bowman is here with m. L. B. Advanced media, the interactive arm of Major League Baseball. Over the last 13 years the country has grown into one of the most successful names in technology. Sports illustrated wrote that baseball has been way ahead on the tech curve because of the brilliance of bowman whose outfit is setting the Gold Standard for live sports streaming, ticketinging, merchandising and stats on the web. Last year Business Insider named the company as the eighth most valuable privately owned Technology Firm in the world. Its estimated to be worth as much as 6 billion. For all those reasons, im pleased to have bob bowman at this table for the first time. And and the fact that ive known him forever. Forever. You have more titles now, i watch you in the morning and at night. I see you more than i see my wife. Rose laughs tell me how this all started. You are a milwaukee brewer fan. Born and raised. When he brought the new team, the brewers he was a hero and you were there to cheer him on. For those of us who were teenagers and loved baseball it was a gloomy day when the braves moved away, as it can be in milwaukee when the braves move bud he worked hard behind the scenes, five years later the seattle pilots became the brewers and he was a god. Mayor or governor were too small a title for him. So god fits. If youre a teenager who loves baseball and you can go to baseball games again it really mattered. Hes had that attitude towards baseball all his life. He is a huge baseball fan and he gets it from the fans point of view which is probably why hes been a good commissioner is that hes done wefrg the team. He owned it, he ran it. Back in those days the owners parked cars, they did a lot of things. That was Small Business and now its a big, big business. But he had the vision, not me. Were just operators. In 99 he thought the internet thing was catching on and maybe we ought to centralize all the Digital Media from the teams and i think a lot of people thought, charlie, that its been about sort of making an asset and growing an asset and certainly it has done that. But if you think of it from a fans point of view, what its done is all the technology that weve bought and created and deployed and all those things, for the milwaukee fan, the person growing up in milwaukee, im getting the same High TechnologyHigh Definition great stuff that the person in new york is getting, the person in l. A. So theres been a leveling of the field for all fans. All the fans are enjoying what wed like to think is very good technology, if not the best hopefully near the best. Rose how did you get involved . They called and asked mif i wanted to be the first c. E. O. I tried act like i didnt and tried to negotiate this. Rose laughs right. And i was just not very good at it. And theres a long list of things that i havent negotiated well. Thats on it. But it was a dream job. I love baseball and i love sports and i Love Technology so it was really something i love to do and i was a fun of bud selig for a long time. Rose but you knew a lot about technology . I wouldnt theys true. I wouldnt say even today thats true. Rose you know people who do. I know people who know people right. But i was at i. T. T. And we dabbled and had done a lot with technology. Rose this is when i first met you. And the internet has been a great spot and if you think about what baseball is, its an egalitarian sport, its for everybody. We have 75 Million People going to our game. So the ability to use the internet to deploy our games and get our games out there, exciting prospect. Rose but its a game you dont think necessil perfect tech ages. Or do you . Well, we do. Because we play everyday lets say youre a yankee or mets fan living here, even though you grew up in the south, maybe youre a braves fan. Rose no, yankees. Youre a yankees fan, they play 162 times, you cant get the Yankee Stadium stadium, you cant watch them on t. V. With the great job they. Do youre too busy. Everyone, not just charlie rose but everyone is too busy. Rose realtime is not a and you have to do it realtime. The game is over, youre going to move on. So if you have five minutes and youre between meetings or waiting in an elevator or church and synagogue, picking up your kids at school, open up your mobile phone, get a score, an update, see a highlight. So its pretty well suited for this digital age and this mobile age where people have three minutes here and four minutes there. Rose the average person who is watches Major League Baseball in terms of watching through you watches for how long . It varies by device. On the phone its about 13 minutes. On the tablet about 31. And on a laptop or desktop about 33 minutes. So probably longer than you might think and probably relates or in what theyre doing rather than the device. The device dictates the time but when youre using your mobile phone, youre on the, go moving between things; even maybe moving between rooms in your house. But when youre a tablet or laptop you might be more stationary, youre at a desk and therefore you might have a little more time. So those times seem short but theyre not. Thats a long time to commit everyday for a baseball game. 30 minutes. Rose and growing trend is to mobile. Our traffic now is almost 5050. Rose 5050 . Right, on to the mobile phone. The mobile phone were still behind the times. As much as all of your friends and relatives and all your guests use mobile phones and rely on them, certainly everybody under the age of 20, were still behind the times. You go to latin america rose we who . The u. S. , because latin america, entirely mobile, asia almost entirely mobile. And thats where the world is going. Its going to be a mobile universe and these phones, whether its steve jobs or the android phones, whatever it may be, theyve changed our lives. We might discuss its made it worse when you walk down the streets of new york and people are bumping into you or when youre in the middle of a conversation and someone says thats very interesting and go right to their phone. Its the way we live. You cant turn the clock back. Rose but back to the beginning, whats the relationship between the company and Major League Baseball . The owners each own one with thirts. 3. 3 . And we report to a board of directors. It was t commissioner was genius for coming up with idea but he set it up outside of baseball. Todays Media Companies created Digital Vision but it reports up through another analog group or an older version of media. This one reported outside. The commissioner said enhanced franchise value, make money and promote the game. Do those three things. Rose what percentage is ownedby major one 1 30th. So when the dodgers were purchased bying intoen chaim, et cetera, they valued at some value and their payment back if they ever sell the team and the same thing with the yankees and mets have been in the same ownership forever. But these teams have sold in the last decade or some. They put some value on bam and their value for the franchise has been increased by some factor. Whatever it is, you read the number. You said 6 billion. Whatever the number is, they take some valuation, divide by 30 and add it to the franchise value when they buy the team. If youre a commissioner, thats something thats not trivial. Youre trying to add franchise value, get everyone to be competitive so you can make the allstar game more interesting and improve t. V. Ratings. But in the end of the day you want to get measured by what the owners have increased the value of their franchise by. Rose so your contribution is what . laughs i thought you wanted to make this a long conversation . The rose laughs what do you do . Its funny, when i talk to kids and say what do you do there . Its either a very short nothing or a very long conversation. But, you know, were now 650 people and we basically half of them are technology, almost 33 are reporters. We have the largest sports reporting staff almost anywhere in the world with the exception of espn. Certainly largest reporting baseball staff in the world. Rose whats the volume of streaming versus anybody else . Well do we think larger. Well do 20,000 live stream this is year. 5,000 in baseball. Rose 5,000 . Well do 15,000 outside of baseball, we do Live Streaming for other entities including cbs sports at time, including espn. Its a turnkey operation, we capture, encode and redistribute. And redistribution, charlie, has changed. When we started this company it was one operating system, windows, and one device, a desktop. And now when you do all the permutations and you do the devices times the operating system it is number you get was 3,500. So when we capture a stream we have to encode it and redistribute it so it looks right on 3,500 hundred devices versus one. So the game has gotten more complicated for us and our technology team, the aaforementioned group, they have to figure out ways to get it to 3,500 devices instantaneously like it used to be one device. Rose is this because you got in early and you took the risk and therefore you became the dominant factor . Theres a lot to be said to be a first mover. Not everyone has to be a first mover. We made more than our fair share of mistake for sure but we made them as you said at a time when everyone was following it n it but not closely and it was a cute thing, the internet. Now its become sort of dominant. Your shows are, as you know, restreamed everywhere in a lot of different web sites. Rose not enough. Not enough. It could always be more. We talked about that. We have more to do here. Were not leaving until we get something fun. Rose laughs but i think that we believe able to help develop things and shape things. Even the initial i. O. S. System we had a play in how videos should play on that because we were there first. But we make our share of mistakes and i think being first does help. And we were among the first, again, not thanks to anything we did but thanks to the vision of our commissioner. Rose this is what fast company said, a magazine. Bam has technologically sophisticated as any company anywhere. Baseballs digital arm has quietly proven itself to be new yorks top tech startup of the last decade. So what other live video beyond sports . Well, we do live shows for folks who we do for individuals who are trying to create their own show and they have their own channel because thats the way you know, you think of what cable is. Cable was narrow casting, doing things online is even more narrow casting and we have some people doing that. We stream for a lot of businesses who do their live events and want to reach their shareholders, their employees worldwide and they want to do it live, they stream live there. Its principally, though, live sports and it is worldwide just because somebody who wants to do it right and like you take you take a golf event, its four days and it has to be done right. Its not a baseball season where if you dont get it right on thursday youll figure it out by monday. No, this has to be right on thursday. You have four days to make it right. So i think the higher quality, the more important the content is, the more likely we are to get a call. Rose thats why i do a Television Show thats daily so i can come back tomorrow and fix what i did badly. The great thing about the internet is we make a mistake and someone pointed out we correct it. So if you want to have access to this it will cost you a hundred bucks a year . Yeah, we think for 2 4shgsz 30, which is how many regular season games there are, and you get all these realtime stats, its barely a hundred bucks a year, one of the best values you could ever find. Rose im sure it is. We need more subscribers. All kidding aside, we have an app application on the mobile phones, the app world. In fact, our fifth Year Anniversary is coming up on july 10, the iphone. July 10 the iphone will be drum roll, please only five years old. Rose thats unbelievable, isnt it . Five years old. And our app will be five years. Rose whose idea was the app, you or steve jobs . No, i wasnt steve they came up with the app store and they rose well, i know that, but for baseball to have an app, did you see the app store and say man, this is made for us . I dont think it was me per se but we have a group of people there. Weve been doing the mobile since 05 because we saw people wanting to use them. When they launched the ipad they asked our two best engineers to come out and they wouldnt allow us to tell us and then steve jobs launched the ipad and we thought really. 40 million ipads in the u. S. Alone later and we see thats a real sport. But the Android System has been a real boon for us because thats how people communicate. Rose so what about these deals, all these networks, these baseball teams have with sports networks, Regional Sports networks. Are you cannibalizing their products . Well, if youre a yankee fan we respect that. I think those walls inch by inch are coming down a little bit, but like every business, theres an economic pie here that has to be very careful with. The cable system a lot of people are taking brickbats at it. Its a good system. One bill a month, you get these channels, its easy to use. 11 00 i can watch you. If i dont like that guest i can watch watch the daily show. Its a good system. Rose most people watch both. We like both. We find one more entertaining than the other and i wont tell you which. Rose laughs so do i ones smarter than the other, too. Yeah, i think thats two pretty smart people on those two shows. We like them both and i so i think weve got to protect that system but inch by inch we need to serve the fans. Fans have come first and so fans want to watch a live baseball game. Eventually were going to have to ghetto a point where they can go to the device and watch it. Whether its their phone or tablet rose its a deal between you and the system . We have to respect everyones value and Business Model. Is that one of your strengths . Youre a great negotiator . I told you before, i you know, i think i think what weve learned in the internet space is if youre two years early it doesnt do you any good because no one will know you were there and if youre six months late youre really in trouble. So one of the advantages rose you meantiming is good . Timing is everything in the internet space. Its frustrating because its so instantaneous you get information so quickly yet the Business Model takes a while to develop. Its not year the right Business Model is, at least not to us. So i think weve had the patience to wait for the right deal and we tone content, right . Its owned by baseball and so were not leasing it and so were not in the a rush to do do a bad deal. So i think weve tried to avoid some deals that dont make sense and waiting for the right moment and the right kind of deal. It will happen. Weve done a we think weve done a good job getting content to fans and we could do a better job. Rose the advantage i had is the sophistication of my set. Thats what really did it for me. Right. Rose look at this. Right, the tables, what, rose 21 years old. And the curtains are the same age. We bought them second hand. On t. V. This table looks pretty darn good so all the people watching, theyll tell you, the table looks 21 years old. Its a fine table. Look, no devices on it. Oh, theyre over there, hidden. Rose so where are you taking this . I think we dont know. Its a little bit proactive and reactive and were pretty paranoid. We get everyday and look at other sites to see whos doing but what but if i had to put my finger on whats going to happen next and lets use the baseball game as an example right now people will use a physical ticket. They might print it at home on a piece of paper that they bought on line, but some people, roughly 6 of our fans, got in with something on their phone. They have to show the phone, it scans the bar code, just like you do at starbucks or a grocery store, you scan a bar code and go. The day will come and i dont mean five years, i mean maybe in five months and certainly by next year where charlie rose is going to go to the yankee game and if your phone is on your person which it almost invariably is were going to know youre there, youll be checked in, no turnstile, no nothing. Youll walk in, well read you, send you a note on your phone to remind you where your seats are, send you whatever information the yankees might want to tell you, youll be all checked in. And technology will be more pervasive but it will get to a point where you dont think of it as technology anymore. Its sort of a way of life. Its not rose is this why you bought www. Tickets. Com . Well, ticketing is mothers milk of baseball. Our fans love going throughtothe games. Once you walk through Yankee Stadium you know youre a different kind of baseball fan. Rose and you can sit there and watch it at the game if you want to see a replay. You know stream willing deliver you things you might not get being in the stadium . Well, we have to in our mind, charlie, the Stadium Technology as advanced as a couch so we are spending along with our partners at tmobile, at t and verizon hundreds and hundreds of millions to wire the stadiums so we have a good signal there so if you see a bangbang play and want to see it again on your phone you can because we think you can do on that on your couch. Rose is this what youre seeing on the big stadium is it content youre creating or simply content happening in the stadium . Repurposing. Repurposing you might see it from a different angle. Rose ah. You go to a baseball game and ive gone to hundreds if not thousands in the last few years theres nothing to replace it. Its ballet. Its just great. The best athletes in the world, in my opinion, playing this great game. But you miss things. Youre 150 feet away