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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:01,666 --> 00:00:04,583 [bright music] 2 00:00:04,666 --> 00:00:05,875 ♪ ♪ 3 00:00:05,958 --> 00:00:07,666 [cell phone trilling] 4 00:00:05,958 --> 00:00:07,666 - Hi, honey. It's me. 5 00:00:07,666 --> 00:00:09,083 [indistinct chatter] 6 00:00:09,166 --> 00:00:11,875 - 80 million people in the 7 00:00:09,166 --> 00:00:11,875 country now have cell phones. 8 00:00:11,875 --> 00:00:14,083 They're no longer 9 00:00:11,875 --> 00:00:14,083 a high-price luxury. 10 00:00:14,166 --> 00:00:17,833 - Today, Apple is 11 00:00:14,166 --> 00:00:17,833 going to reinvent the phone. 12 00:00:17,916 --> 00:00:21,583 - To Google means to 13 00:00:17,916 --> 00:00:21,583 find out all there is to know. 14 00:00:21,583 --> 00:00:23,083 - How many friends 15 00:00:21,583 --> 00:00:23,083 do you officially have now? 16 00:00:23,083 --> 00:00:24,375 - 175 million. 17 00:00:24,458 --> 00:00:28,750 - So within four degrees of me 18 00:00:24,458 --> 00:00:28,750 are 700,000 people. 19 00:00:28,750 --> 00:00:30,458 - Who is Barack Obama? 20 00:00:30,541 --> 00:00:33,250 The answers is right there 21 00:00:30,541 --> 00:00:33,250 on my Facebook page. 22 00:00:33,250 --> 00:00:34,541 - If you like hilarious, 23 00:00:33,250 --> 00:00:34,541 shocking, 24 00:00:34,541 --> 00:00:36,583 embarrassing videos... 25 00:00:34,541 --> 00:00:36,583 - I like turtles. 26 00:00:36,583 --> 00:00:39,416 - Chances are, you spend 27 00:00:36,583 --> 00:00:39,416 a lot of time on YouTube. 28 00:00:39,416 --> 00:00:41,458 - [sobbing] 29 00:00:39,416 --> 00:00:41,458 Leave Britney alone! 30 00:00:41,541 --> 00:00:44,208 - What we're creating is a 31 00:00:41,541 --> 00:00:44,208 stage for everyone to be seen. 32 00:00:44,208 --> 00:00:46,208 - We're in a very 33 00:00:44,208 --> 00:00:46,208 wonderful time right now 34 00:00:46,208 --> 00:00:49,208 where the innovations really 35 00:00:46,208 --> 00:00:49,208 are driving the technology 36 00:00:49,208 --> 00:00:51,083 right into the center 37 00:00:49,208 --> 00:00:51,083 of our lives. 38 00:00:51,083 --> 00:00:53,750 - This should be simpler, 39 00:00:51,083 --> 00:00:53,750 more powerful, faster. 40 00:00:53,833 --> 00:00:57,083 - Of course, 41 00:00:53,833 --> 00:00:57,083 the big story tonight is... 42 00:00:57,083 --> 00:00:58,958 I have an iPad. 43 00:00:57,083 --> 00:00:58,958 [cheers and laughter] 44 00:00:59,041 --> 00:01:01,958 [dramatic music] 45 00:01:02,041 --> 00:01:09,083 ♪ ♪ 46 00:01:39,250 --> 00:01:45,791 ♪ ♪ 47 00:01:49,000 --> 00:01:51,375 - In focus tonight, 48 00:01:49,000 --> 00:01:51,375 the communication innovations 49 00:01:51,458 --> 00:01:54,125 that await us as we 50 00:01:51,458 --> 00:01:54,125 head into the 21st century. 51 00:01:54,208 --> 00:01:56,666 [whooshing] 52 00:01:54,208 --> 00:01:56,666 [bubbling] 53 00:01:56,666 --> 00:01:58,166 - We're in for the 54 00:01:56,666 --> 00:01:58,166 communications ride 55 00:01:58,166 --> 00:01:59,500 of our lives. 56 00:01:59,500 --> 00:02:01,458 The coming years 57 00:01:59,500 --> 00:02:01,458 see cell phones 58 00:02:01,541 --> 00:02:03,166 small enough to 59 00:02:01,541 --> 00:02:03,166 hide in your pocket, 60 00:02:03,166 --> 00:02:05,833 the promise of video phones 61 00:02:03,166 --> 00:02:05,833 is coming true, 62 00:02:05,916 --> 00:02:07,833 tiny, hand-sized computers 63 00:02:07,916 --> 00:02:09,791 that know your 64 00:02:07,916 --> 00:02:09,791 favorite subjects, 65 00:02:09,791 --> 00:02:11,625 and Internet everywhere. 66 00:02:11,708 --> 00:02:13,000 [bright music] 67 00:02:13,083 --> 00:02:15,000 - There have been 68 00:02:13,083 --> 00:02:15,000 technology revolutions 69 00:02:15,000 --> 00:02:18,000 in human history before, 70 00:02:15,000 --> 00:02:18,000 but I think this one 71 00:02:18,000 --> 00:02:22,541 has been incredibly compressed 72 00:02:18,000 --> 00:02:22,541 in how fast it happened, 73 00:02:22,625 --> 00:02:24,208 how one thing 74 00:02:22,625 --> 00:02:24,208 led to the next thing, 75 00:02:24,291 --> 00:02:25,541 led to the next thing, 76 00:02:25,625 --> 00:02:28,916 and how quickly 77 00:02:25,625 --> 00:02:28,916 it began to penetrate 78 00:02:29,000 --> 00:02:31,208 all parts of our culture. 79 00:02:31,291 --> 00:02:32,708 - This is my TiVo. 80 00:02:32,791 --> 00:02:35,333 It automatically finds and 81 00:02:32,791 --> 00:02:35,333 records our favorite shows. 82 00:02:35,333 --> 00:02:39,250 - TiVo, really, the DVR, 83 00:02:35,333 --> 00:02:39,250 was time-shifting. 84 00:02:39,333 --> 00:02:43,166 - I don't have time to 85 00:02:39,333 --> 00:02:43,166 watch silly things on TV. 86 00:02:43,166 --> 00:02:44,500 That's why I got TiVo. 87 00:02:44,583 --> 00:02:49,375 - The notion of living a 88 00:02:44,583 --> 00:02:49,375 digital life began to take hold 89 00:02:49,375 --> 00:02:51,833 on multiple levels of society. 90 00:02:51,916 --> 00:02:54,541 - There's little doubt that 91 00:02:51,916 --> 00:02:54,541 the ubiquitous Blackberrys 92 00:02:54,625 --> 00:02:57,083 become a vital tool 93 00:02:54,625 --> 00:02:57,083 in offices, 94 00:02:57,166 --> 00:02:59,041 in news rooms, 95 00:02:57,166 --> 00:02:59,041 and in governments. 96 00:02:59,041 --> 00:03:00,666 - It's a wireless 97 00:02:59,041 --> 00:03:00,666 information device 98 00:03:00,750 --> 00:03:02,208 and, of course, 99 00:03:00,750 --> 00:03:02,208 it does email. 100 00:03:02,208 --> 00:03:03,916 - Got it, and how reliable 101 00:03:02,208 --> 00:03:03,916 is the service? 102 00:03:04,000 --> 00:03:05,250 Can you get it-- 103 00:03:04,000 --> 00:03:05,250 use it anywhere? 104 00:03:05,333 --> 00:03:06,583 - This is an amazing tool, 105 00:03:05,333 --> 00:03:06,583 actually. 106 00:03:06,666 --> 00:03:08,208 I use this 107 00:03:06,666 --> 00:03:08,208 all over the country. 108 00:03:08,291 --> 00:03:10,083 - The BlackBerry was 109 00:03:08,291 --> 00:03:10,083 the most amazing, 110 00:03:10,166 --> 00:03:13,708 magical invention in the 111 00:03:10,166 --> 00:03:13,708 history of things you can buy. 112 00:03:13,791 --> 00:03:15,041 - And I'll tell you this. 113 00:03:15,125 --> 00:03:17,916 People here at CNN are 114 00:03:15,125 --> 00:03:17,916 so addicted to them, 115 00:03:18,000 --> 00:03:20,208 they jokingly refer 116 00:03:18,000 --> 00:03:20,208 to them as CrackBerrys. 117 00:03:20,208 --> 00:03:23,083 - The early 2000s was a time 118 00:03:20,208 --> 00:03:23,083 where people were really 119 00:03:23,166 --> 00:03:26,250 paying very close attention 120 00:03:23,166 --> 00:03:26,250 to new technology 121 00:03:26,333 --> 00:03:27,583 and the Internet. 122 00:03:27,666 --> 00:03:29,375 - At the dawn 123 00:03:27,666 --> 00:03:29,375 of the Internet age, 124 00:03:29,458 --> 00:03:31,041 there is stunning new evidence 125 00:03:31,041 --> 00:03:33,250 of the growing power 126 00:03:31,041 --> 00:03:33,250 of the new medium. 127 00:03:33,250 --> 00:03:35,541 Internet pioneer, 128 00:03:33,250 --> 00:03:35,541 America Online, 129 00:03:35,541 --> 00:03:39,250 announced today it is buying 130 00:03:35,541 --> 00:03:39,250 big, sprawling Time Warner, 131 00:03:39,250 --> 00:03:42,541 creating the world's 132 00:03:39,250 --> 00:03:42,541 largest media conglomerate. 133 00:03:42,625 --> 00:03:44,541 [cheers and applause] 134 00:03:44,541 --> 00:03:46,750 - The AOL-Time Warner merger 135 00:03:46,750 --> 00:03:49,250 was the classic .com insanity. 136 00:03:49,333 --> 00:03:51,750 - $160 billion-- 137 00:03:51,750 --> 00:03:53,750 the biggest 138 00:03:51,750 --> 00:03:53,750 corporate takeover ever. 139 00:03:53,750 --> 00:03:57,166 - This merger will launch the 140 00:03:53,750 --> 00:03:57,166 next Internet revolution. 141 00:03:57,250 --> 00:04:01,833 - The merger of Time Warner 142 00:03:57,250 --> 00:04:01,833 and AOL wasn't really a merger. 143 00:04:01,916 --> 00:04:03,791 It was a purchase. 144 00:04:03,875 --> 00:04:07,666 - I am struck by this image 145 00:04:03,875 --> 00:04:07,666 today of the upstart AOL 146 00:04:07,750 --> 00:04:10,916 gobbling up this media 147 00:04:07,750 --> 00:04:10,916 institution, Time Warner. 148 00:04:10,916 --> 00:04:12,458 Shouldn't it be 149 00:04:10,916 --> 00:04:12,458 the other way around? 150 00:04:12,541 --> 00:04:14,291 - Well, you know, 151 00:04:12,541 --> 00:04:14,291 it's sort of startling that 152 00:04:14,291 --> 00:04:15,958 a company that 153 00:04:14,291 --> 00:04:15,958 couldn't even buy beer 154 00:04:15,958 --> 00:04:19,125 is now buying one of the oldest 155 00:04:15,958 --> 00:04:19,125 media companies in the country 156 00:04:19,208 --> 00:04:21,166 that took a century 157 00:04:19,208 --> 00:04:21,166 to get this big. 158 00:04:21,250 --> 00:04:22,791 - We're just 159 00:04:21,250 --> 00:04:22,791 scratching the surface 160 00:04:22,875 --> 00:04:26,000 in terms of how great 161 00:04:22,875 --> 00:04:26,000 these products can become. 162 00:04:26,083 --> 00:04:27,458 Whether it's the Internet, 163 00:04:27,458 --> 00:04:29,250 the way you communicate 164 00:04:27,458 --> 00:04:29,250 with people-- 165 00:04:29,333 --> 00:04:32,125 software is in its early stage. 166 00:04:32,125 --> 00:04:33,833 There's some real advances 167 00:04:33,833 --> 00:04:35,166 that are gonna make 168 00:04:33,833 --> 00:04:35,166 a big difference. 169 00:04:35,166 --> 00:04:37,625 - Microsoft, in the 170 00:04:35,166 --> 00:04:37,625 beginning of the decade, 171 00:04:37,708 --> 00:04:41,041 with their operating system 172 00:04:37,708 --> 00:04:41,041 and their productivity software 173 00:04:41,125 --> 00:04:43,125 was still very, very strong. 174 00:04:43,208 --> 00:04:44,833 - Microsoft chairman, 175 00:04:43,208 --> 00:04:44,833 Bill Gates, 176 00:04:44,833 --> 00:04:46,833 calls Windows XP 177 00:04:46,833 --> 00:04:49,208 the most important tool 178 00:04:46,833 --> 00:04:49,208 that's ever been created. 179 00:04:49,291 --> 00:04:50,541 - At the time, 180 00:04:50,625 --> 00:04:53,791 Microsoft was 33 times 181 00:04:50,625 --> 00:04:53,791 larger than Apple. 182 00:04:53,875 --> 00:04:56,666 Apple was seen as 183 00:04:53,875 --> 00:04:56,666 a second or even third-tier 184 00:04:56,750 --> 00:05:00,791 technology player that 185 00:04:56,750 --> 00:05:00,791 had essentially lost the way. 186 00:05:00,875 --> 00:05:03,208 - We have a 5% market share, 187 00:05:00,875 --> 00:05:03,208 and you could say, 188 00:05:03,291 --> 00:05:04,625 you know, that doesn't 189 00:05:03,291 --> 00:05:04,625 sound like too much, 190 00:05:04,708 --> 00:05:07,958 but we look at it as saying 191 00:05:04,708 --> 00:05:07,958 kinda five down, 95 to go. 192 00:05:07,958 --> 00:05:09,291 - In 2000, 193 00:05:09,291 --> 00:05:12,333 Steve Jobs was just trying 194 00:05:09,291 --> 00:05:12,333 to save Apple from death. 195 00:05:12,416 --> 00:05:14,916 - Apple computer 196 00:05:12,416 --> 00:05:14,916 chief executive Steve Jobs 197 00:05:15,000 --> 00:05:16,541 is rolling out new products 198 00:05:16,625 --> 00:05:20,083 he hopes will reinvigorate the 199 00:05:16,625 --> 00:05:20,083 company and its bottom line. 200 00:05:20,166 --> 00:05:22,500 - The thing about Steve Jobs 201 00:05:20,166 --> 00:05:22,500 that differentiates him 202 00:05:22,500 --> 00:05:25,666 from Bill Gates is 203 00:05:22,500 --> 00:05:25,666 he wasn't a programmer, 204 00:05:25,750 --> 00:05:29,041 he wasn't an engineer, 205 00:05:25,750 --> 00:05:29,041 and he wasn't a designer. 206 00:05:29,125 --> 00:05:33,666 But he knew enough about 207 00:05:29,125 --> 00:05:33,666 programming and engineering, 208 00:05:33,666 --> 00:05:36,333 and he had enough just 209 00:05:33,666 --> 00:05:36,333 innate design sense 210 00:05:36,333 --> 00:05:39,708 that he was 211 00:05:36,333 --> 00:05:39,708 the perfect curator. 212 00:05:39,708 --> 00:05:41,708 - No stranger to 213 00:05:39,708 --> 00:05:41,708 innovation, Apple, 214 00:05:41,708 --> 00:05:44,041 the company that brought you 215 00:05:41,708 --> 00:05:44,041 the personal computer, 216 00:05:44,041 --> 00:05:45,541 is opening stores 217 00:05:44,041 --> 00:05:45,541 across the country. 218 00:05:45,541 --> 00:05:48,333 This'll be Apple's first 219 00:05:45,541 --> 00:05:48,333 venture into direct retail, 220 00:05:48,416 --> 00:05:50,250 a bold move in this 221 00:05:48,416 --> 00:05:50,250 pretty sluggish economy. 222 00:05:50,333 --> 00:05:51,708 Now, the question remains-- 223 00:05:51,708 --> 00:05:54,000 if Apple builds them, 224 00:05:51,708 --> 00:05:54,000 will customers come? 225 00:05:54,000 --> 00:05:55,875 [cheers and applause] 226 00:05:55,958 --> 00:05:58,708 - The common wisdom on 227 00:05:55,958 --> 00:05:58,708 the Apple retail stores 228 00:05:58,708 --> 00:06:01,125 was that it was a stupid idea 229 00:05:58,708 --> 00:06:01,125 that would fail. 230 00:06:01,208 --> 00:06:03,208 Plenty of computer companies 231 00:06:01,208 --> 00:06:03,208 had tried it. 232 00:06:03,208 --> 00:06:06,208 Dell had stores. 233 00:06:03,208 --> 00:06:06,208 Gateway had stores. 234 00:06:06,291 --> 00:06:07,541 Nobody went to them. 235 00:06:07,625 --> 00:06:09,708 It was just an 236 00:06:07,625 --> 00:06:09,708 exercise in vanity. 237 00:06:09,791 --> 00:06:13,750 But this concept of open, 238 00:06:09,791 --> 00:06:13,750 airy places where they 239 00:06:13,833 --> 00:06:16,125 weren't gonna try to 240 00:06:13,833 --> 00:06:16,125 sell you stuff, but instead, 241 00:06:16,208 --> 00:06:18,750 you could ask questions 242 00:06:16,208 --> 00:06:18,750 about your Apple products, 243 00:06:18,833 --> 00:06:20,291 you could see demonstrations, 244 00:06:20,375 --> 00:06:22,041 you could get 245 00:06:20,375 --> 00:06:22,041 your hands on them 246 00:06:22,041 --> 00:06:25,625 is just an unbelievably 247 00:06:22,041 --> 00:06:25,625 different approach to retail. 248 00:06:25,708 --> 00:06:27,916 And once again, 249 00:06:28,000 --> 00:06:30,708 Steve Jobs figured it out. 250 00:06:30,791 --> 00:06:33,458 - What began the process 251 00:06:30,791 --> 00:06:33,458 of taking Apple 252 00:06:33,541 --> 00:06:35,958 from a niche player 253 00:06:33,541 --> 00:06:35,958 to a leader that 254 00:06:36,041 --> 00:06:38,125 everyone had to race 255 00:06:36,041 --> 00:06:38,125 to catch up to-- 256 00:06:38,208 --> 00:06:42,125 even Microsoft-- 257 00:06:38,208 --> 00:06:42,125 was the iPod. 258 00:06:42,125 --> 00:06:43,666 - Boom. 259 00:06:42,125 --> 00:06:43,666 That's the iPod. 260 00:06:43,750 --> 00:06:45,333 I happen to have one right 261 00:06:43,750 --> 00:06:45,333 here in my pocket, my friends. 262 00:06:45,416 --> 00:06:47,583 [laughter] 263 00:06:45,416 --> 00:06:47,583 There it is, right there. 264 00:06:47,583 --> 00:06:50,625 [applause] 265 00:06:51,833 --> 00:06:54,583 - The iPod was a classic 266 00:06:51,833 --> 00:06:54,583 Apple device, you know? 267 00:06:54,666 --> 00:06:56,625 A chrome-mirrored back, 268 00:06:56,625 --> 00:06:59,166 a pure white acrylic front, 269 00:06:59,250 --> 00:07:00,791 that famous click wheel for 270 00:07:00,875 --> 00:07:02,250 dialing through 271 00:07:00,875 --> 00:07:02,250 lists and stuff-- 272 00:07:02,333 --> 00:07:05,583 it was the first mp3 player 273 00:07:02,333 --> 00:07:05,583 that really worked 274 00:07:05,583 --> 00:07:08,000 and was so easy to use 275 00:07:08,083 --> 00:07:10,458 that you developed this 276 00:07:08,083 --> 00:07:10,458 instant sense of mastery. 277 00:07:10,458 --> 00:07:12,916 You're like, 278 00:07:10,458 --> 00:07:12,916 "I'm good at this." 279 00:07:13,000 --> 00:07:14,416 [iPod wheel clicking] 280 00:07:14,416 --> 00:07:16,125 [electronic music] 281 00:07:16,208 --> 00:07:18,291 - Oh, my God, 282 00:07:16,208 --> 00:07:18,291 I could not believe that 283 00:07:18,375 --> 00:07:20,833 this little, 284 00:07:18,375 --> 00:07:20,833 heavy-ass box 285 00:07:20,833 --> 00:07:22,791 with this wheel 286 00:07:20,833 --> 00:07:22,791 on the front of it 287 00:07:22,875 --> 00:07:25,458 could hold all of this music, 288 00:07:25,458 --> 00:07:29,708 and I could actually 289 00:07:25,458 --> 00:07:29,708 take my music with me. 290 00:07:29,791 --> 00:07:31,833 - Everybody would 291 00:07:29,791 --> 00:07:31,833 have their CDs, 292 00:07:31,916 --> 00:07:34,041 and then that iPod came 293 00:07:31,916 --> 00:07:34,041 and we just 294 00:07:34,125 --> 00:07:35,541 chased that thing down 295 00:07:34,125 --> 00:07:35,541 immediately, right? 296 00:07:35,625 --> 00:07:37,333 This is gonna change our lives. 297 00:07:35,625 --> 00:07:37,333 It did. 298 00:07:37,333 --> 00:07:38,666 - I'm one of these people 299 00:07:37,333 --> 00:07:38,666 who walks around with 300 00:07:38,666 --> 00:07:40,625 these things in constantly, 301 00:07:38,666 --> 00:07:40,625 can't take it off. 302 00:07:40,625 --> 00:07:44,958 - The iPod itself had to be 303 00:07:40,625 --> 00:07:44,958 loaded using a computer 304 00:07:45,041 --> 00:07:47,666 from music that you got 305 00:07:45,041 --> 00:07:47,666 from other means-- 306 00:07:47,750 --> 00:07:51,833 you ripped from your CDs, 307 00:07:47,750 --> 00:07:51,833 or you downloaded illegally. 308 00:07:51,833 --> 00:07:56,000 So, Jobs' next idea was, 309 00:07:51,833 --> 00:07:56,000 "Let's have an online store 310 00:07:56,000 --> 00:07:59,125 where you can 311 00:07:56,000 --> 00:07:59,125 buy these things legally." 312 00:07:59,208 --> 00:08:01,500 - We decided, since 313 00:07:59,208 --> 00:08:01,500 no one else was doing this, 314 00:08:01,500 --> 00:08:03,041 that we were gonna do it. 315 00:08:03,125 --> 00:08:05,208 And we started about 316 00:08:03,125 --> 00:08:05,208 a year and a half ago 317 00:08:05,208 --> 00:08:09,375 to create a music store-- 318 00:08:05,208 --> 00:08:09,375 music downloads done right. 319 00:08:09,375 --> 00:08:12,000 - Apple knew exactly 320 00:08:09,375 --> 00:08:12,000 what it was doing. 321 00:08:12,083 --> 00:08:16,333 This was not about simply 322 00:08:12,083 --> 00:08:16,333 moving units of hardware. 323 00:08:16,333 --> 00:08:18,166 This, for them, 324 00:08:16,333 --> 00:08:18,166 was the beginning 325 00:08:18,166 --> 00:08:22,666 of a multi-faceted approach 326 00:08:18,166 --> 00:08:22,666 at dominating how we, 327 00:08:22,750 --> 00:08:25,666 the world, 328 00:08:22,750 --> 00:08:25,666 would consume technology. 329 00:08:25,750 --> 00:08:27,333 - The most important thing 330 00:08:25,750 --> 00:08:27,333 though, I think, 331 00:08:27,416 --> 00:08:29,208 is what do you do 332 00:08:27,416 --> 00:08:29,208 with these things? 333 00:08:29,291 --> 00:08:32,833 Can we help you express 334 00:08:29,291 --> 00:08:32,833 yourself in richer ways 335 00:08:32,916 --> 00:08:35,250 in your music, 336 00:08:32,916 --> 00:08:35,250 in your movies, 337 00:08:35,333 --> 00:08:37,000 in your photography, 338 00:08:37,083 --> 00:08:39,250 and these kinds of things 339 00:08:37,083 --> 00:08:39,250 that people want to do. 340 00:08:40,125 --> 00:08:41,666 - NBC News In Depth tonight-- 341 00:08:41,750 --> 00:08:43,708 more on this dark day 342 00:08:41,750 --> 00:08:43,708 on Wall Street 343 00:08:43,791 --> 00:08:46,416 and this week's 344 00:08:43,791 --> 00:08:46,416 technology sector meltdown. 345 00:08:46,500 --> 00:08:48,041 It was just a few months back. 346 00:08:48,041 --> 00:08:51,208 If your company ended in .com, 347 00:08:48,041 --> 00:08:51,208 it was a good thing. 348 00:08:51,208 --> 00:08:53,750 It meant enormous wealth 349 00:08:51,208 --> 00:08:53,750 in many cases-- 350 00:08:53,750 --> 00:08:55,250 at least, on paper. 351 00:08:55,250 --> 00:08:57,541 But at the end of this 352 00:08:55,250 --> 00:08:57,541 brutal week on Wall Street, 353 00:08:57,625 --> 00:08:59,458 a lot of analysts think 354 00:08:57,625 --> 00:08:59,458 the Internet bubble 355 00:08:59,541 --> 00:09:02,208 is ready to burst and 356 00:08:59,541 --> 00:09:02,208 by this time next year, 357 00:09:02,208 --> 00:09:04,416 a huge number of those .coms 358 00:09:04,416 --> 00:09:07,041 might be .gone. 359 00:09:07,125 --> 00:09:09,041 - In the spring of 2000, 360 00:09:09,125 --> 00:09:12,541 the stock market starts 361 00:09:09,125 --> 00:09:12,541 to decline slowly and then 362 00:09:12,625 --> 00:09:15,416 it's like a mass extinction 363 00:09:12,625 --> 00:09:15,416 event in Silicon Valley. 364 00:09:15,416 --> 00:09:17,583 - Some investors are 365 00:09:15,416 --> 00:09:17,583 licking their wounds today 366 00:09:17,666 --> 00:09:19,083 after a number 367 00:09:17,666 --> 00:09:19,083 of Internet stocks 368 00:09:19,166 --> 00:09:20,583 took a hit on Wall Street, 369 00:09:20,583 --> 00:09:22,916 as reports of layoffs 370 00:09:20,583 --> 00:09:22,916 at .com companies 371 00:09:23,000 --> 00:09:25,416 and doubts about their ability 372 00:09:23,000 --> 00:09:25,416 to generate profit spread. 373 00:09:25,416 --> 00:09:26,750 - They'll tell you one thing. 374 00:09:26,750 --> 00:09:28,083 "Well, 375 00:09:26,750 --> 00:09:28,083 everything will be fine. 376 00:09:28,083 --> 00:09:29,666 We're just going 377 00:09:28,083 --> 00:09:29,666 through transitions." 378 00:09:29,750 --> 00:09:32,083 The next week, 379 00:09:29,750 --> 00:09:32,083 we're downsizing. 380 00:09:32,083 --> 00:09:33,416 The next week, 381 00:09:32,083 --> 00:09:33,416 we're closing. 382 00:09:33,500 --> 00:09:34,916 - Once we started 383 00:09:33,500 --> 00:09:34,916 seeing a sell-off, 384 00:09:35,000 --> 00:09:38,500 even companies that survived-- 385 00:09:35,000 --> 00:09:38,500 eBay, Amazon-- 386 00:09:38,583 --> 00:09:39,625 they all suffered. 387 00:09:39,625 --> 00:09:42,250 - Amazon.com CEO 388 00:09:39,625 --> 00:09:42,250 Jeff Bezos-- 389 00:09:42,250 --> 00:09:44,583 his company's 390 00:09:42,250 --> 00:09:44,583 stock price tumbling 391 00:09:44,583 --> 00:09:48,750 from $113 a share 392 00:09:44,583 --> 00:09:48,750 to less than $16 today. 393 00:09:48,750 --> 00:09:50,916 - It's not the kind of stock 394 00:09:48,750 --> 00:09:50,916 that you can own 395 00:09:50,916 --> 00:09:53,291 and sleep well if 396 00:09:50,916 --> 00:09:53,291 you're a small investor-- 397 00:09:53,375 --> 00:09:54,625 and I think, by the way, 398 00:09:54,708 --> 00:09:56,291 that's true of 399 00:09:54,708 --> 00:09:56,291 all Internet stocks. 400 00:09:56,375 --> 00:09:57,625 - There are plenty of people 401 00:09:56,375 --> 00:09:57,625 that said, 402 00:09:57,708 --> 00:09:59,166 "This is just a dip. 403 00:09:57,708 --> 00:09:59,166 Buy the dips. 404 00:09:59,250 --> 00:10:00,625 This is gonna come back." 405 00:10:00,708 --> 00:10:03,833 I think by the spring of 2001, 406 00:10:00,708 --> 00:10:03,833 it was pretty clear that-- 407 00:10:03,916 --> 00:10:05,208 that this was over. 408 00:10:05,291 --> 00:10:08,291 all: Three, two, one. 409 00:10:08,291 --> 00:10:09,875 - We put this baby to bed. 410 00:10:09,958 --> 00:10:11,958 Shopping is now turned off. 411 00:10:09,958 --> 00:10:11,958 [soft applause] 412 00:10:12,041 --> 00:10:14,000 - We know there's a lot 413 00:10:12,041 --> 00:10:14,000 of pain to go around 414 00:10:14,083 --> 00:10:16,166 in terms of the stock market 415 00:10:14,083 --> 00:10:16,166 these days, 416 00:10:16,166 --> 00:10:18,125 but AOL stock has 417 00:10:16,166 --> 00:10:18,125 gotten beaten down 418 00:10:18,125 --> 00:10:20,333 even more than the 419 00:10:18,125 --> 00:10:20,333 rest of the market. 420 00:10:20,416 --> 00:10:22,125 - AOL and Time Warner 421 00:10:20,416 --> 00:10:22,125 was probably 422 00:10:22,125 --> 00:10:23,625 the worst deal in history. 423 00:10:23,708 --> 00:10:27,166 AOL didn't really 424 00:10:23,708 --> 00:10:27,166 control the Internet 425 00:10:27,166 --> 00:10:28,625 in the way that 426 00:10:27,166 --> 00:10:28,625 they claimed to. 427 00:10:28,625 --> 00:10:29,958 - Everything is a lot easier 428 00:10:28,625 --> 00:10:29,958 and the Internet 429 00:10:29,958 --> 00:10:31,291 is a lot more user-friendly. 430 00:10:31,291 --> 00:10:34,000 The Internet moved towards 431 00:10:31,291 --> 00:10:34,000 what AOL was doing. 432 00:10:34,000 --> 00:10:36,208 So now, what is 433 00:10:34,000 --> 00:10:36,208 AOL's unique selling point, 434 00:10:36,291 --> 00:10:39,541 and are you gonna pay $23.95 435 00:10:36,291 --> 00:10:39,541 a month extra for that? 436 00:10:39,625 --> 00:10:40,958 - [chuckles] 437 00:10:41,041 --> 00:10:42,291 I feel like my retirement's 438 00:10:42,375 --> 00:10:43,958 going up in smoke 439 00:10:42,375 --> 00:10:43,958 as we talk here. 440 00:10:43,958 --> 00:10:46,541 - The web was skyrocketing 441 00:10:43,958 --> 00:10:46,541 in popularity, 442 00:10:46,625 --> 00:10:48,500 and Internet users 443 00:10:46,625 --> 00:10:48,500 didn't wanna live 444 00:10:48,500 --> 00:10:50,750 in the walled garden 445 00:10:48,500 --> 00:10:50,750 of AOL services 446 00:10:50,833 --> 00:10:52,166 and all of its media content. 447 00:10:52,166 --> 00:10:53,833 They wanted to range around 448 00:10:52,166 --> 00:10:53,833 on the Internet 449 00:10:53,916 --> 00:10:55,541 and use new tools like Google. 450 00:10:55,625 --> 00:10:56,875 [keyboard clacking] 451 00:10:56,875 --> 00:10:59,416 - Searching for answers 452 00:10:56,875 --> 00:10:59,416 on Google. 453 00:10:59,500 --> 00:11:01,416 A quirky California company 454 00:11:01,500 --> 00:11:05,333 has transformed the way 455 00:11:01,500 --> 00:11:05,333 the world finds things out. 456 00:11:05,416 --> 00:11:08,250 - Early on in 457 00:11:05,416 --> 00:11:08,250 web search engine history, 458 00:11:08,333 --> 00:11:10,000 there were actually editors 459 00:11:10,000 --> 00:11:13,500 who were trying to make a list 460 00:11:10,000 --> 00:11:13,500 of all the good websites. 461 00:11:13,583 --> 00:11:16,000 And that's why Google's 462 00:11:13,583 --> 00:11:16,000 appearance on the scene 463 00:11:16,083 --> 00:11:17,333 changed everything. 464 00:11:17,416 --> 00:11:20,000 - Google scans over 465 00:11:17,416 --> 00:11:20,000 4 billion web pages 466 00:11:20,000 --> 00:11:22,208 for matching results. 467 00:11:20,000 --> 00:11:22,208 [keyboard clacking] 468 00:11:22,291 --> 00:11:24,208 Google chooses these results 469 00:11:24,291 --> 00:11:27,250 through a mix of looking 470 00:11:24,291 --> 00:11:27,250 for the closest word match 471 00:11:27,333 --> 00:11:29,375 and judging 472 00:11:27,333 --> 00:11:29,375 a page's relevance 473 00:11:29,375 --> 00:11:31,916 by counting how many 474 00:11:29,375 --> 00:11:31,916 other pages link to it. 475 00:11:31,916 --> 00:11:34,416 - Google came up with 476 00:11:31,916 --> 00:11:34,416 a simple algorithm 477 00:11:34,500 --> 00:11:37,208 and basically, 478 00:11:34,500 --> 00:11:37,208 it decides for itself 479 00:11:37,291 --> 00:11:39,041 which are the 480 00:11:37,291 --> 00:11:39,041 most important sites, 481 00:11:39,125 --> 00:11:41,375 the most likely sites to have 482 00:11:39,125 --> 00:11:41,375 the answer you're looking for. 483 00:11:41,458 --> 00:11:43,708 - That makes for 484 00:11:41,458 --> 00:11:43,708 a very efficient search, 485 00:11:43,708 --> 00:11:46,958 and word of how it works 486 00:11:43,708 --> 00:11:46,958 is getting around. 487 00:11:47,041 --> 00:11:49,708 - When you make 488 00:11:47,041 --> 00:11:49,708 a big leap like that, 489 00:11:49,708 --> 00:11:51,708 you immediately 490 00:11:49,708 --> 00:11:51,708 become the winner. 491 00:11:51,791 --> 00:11:54,541 - Obviously, everybody 492 00:11:51,791 --> 00:11:54,541 wants to be successful, 493 00:11:54,625 --> 00:11:56,250 but I want to be 494 00:11:54,625 --> 00:11:56,250 looked back on 495 00:11:56,250 --> 00:11:57,750 as making a big difference 496 00:11:56,250 --> 00:11:57,750 in the world. 497 00:11:57,833 --> 00:11:59,416 - Google's goal is to really 498 00:11:59,416 --> 00:12:01,375 organize the 499 00:11:59,416 --> 00:12:01,375 world's information 500 00:12:01,375 --> 00:12:04,416 and make it universally 501 00:12:01,375 --> 00:12:04,416 accessible and useful. 502 00:12:04,416 --> 00:12:07,208 - Larry and Sergey-- 503 00:12:04,416 --> 00:12:07,208 they were idealistic. 504 00:12:07,291 --> 00:12:08,791 They loved what 505 00:12:07,291 --> 00:12:08,791 they were building, 506 00:12:08,875 --> 00:12:12,000 and they had this corporate 507 00:12:08,875 --> 00:12:12,000 motto of, "Don't be evil." 508 00:12:12,083 --> 00:12:13,666 - I guess it's your 509 00:12:12,083 --> 00:12:13,666 unofficial motto? 510 00:12:13,750 --> 00:12:15,750 "Don't be evil"? 511 00:12:13,750 --> 00:12:15,750 What does that mean? 512 00:12:15,750 --> 00:12:17,791 - The idea is just that 513 00:12:15,750 --> 00:12:17,791 we should be thinking about 514 00:12:17,875 --> 00:12:20,750 what we're doing all the time, 515 00:12:17,875 --> 00:12:20,750 and make sure that, you know, 516 00:12:20,750 --> 00:12:22,583 we're--we're doing good, 517 00:12:20,750 --> 00:12:22,583 basically. 518 00:12:22,583 --> 00:12:23,916 We thought it was 519 00:12:22,583 --> 00:12:23,916 really important as 520 00:12:24,000 --> 00:12:26,250 Google grows in scope and 521 00:12:24,000 --> 00:12:26,250 influence around the world 522 00:12:26,333 --> 00:12:29,458 to have a philanthropic 523 00:12:26,333 --> 00:12:29,458 part of the company. 524 00:12:29,541 --> 00:12:32,625 - The culture at Google 525 00:12:29,541 --> 00:12:32,625 was very freewheeling. 526 00:12:32,708 --> 00:12:34,291 Anyone could do anything. 527 00:12:34,291 --> 00:12:36,125 [billiard balls clacking] 528 00:12:36,125 --> 00:12:38,500 - Larry Page and 529 00:12:36,125 --> 00:12:38,500 Sergey Brin said, 530 00:12:38,583 --> 00:12:40,333 "Let's give them 531 00:12:38,583 --> 00:12:40,333 20% of their time. 532 00:12:40,416 --> 00:12:41,791 They can work on 533 00:12:40,416 --> 00:12:41,791 anything they want." 534 00:12:41,875 --> 00:12:44,083 - We put that link there. 535 00:12:41,875 --> 00:12:44,083 - It could be the first link. 536 00:12:44,083 --> 00:12:45,416 - You come here at 537 00:12:44,083 --> 00:12:45,416 9:00 in the morning, 538 00:12:45,500 --> 00:12:47,291 the parking lot's 539 00:12:45,500 --> 00:12:47,291 still half empty, 540 00:12:47,291 --> 00:12:49,250 and it's because 541 00:12:47,291 --> 00:12:49,250 it's up to the individual 542 00:12:49,250 --> 00:12:50,750 and the teams they work with 543 00:12:49,250 --> 00:12:50,750 to figure out 544 00:12:50,833 --> 00:12:53,500 what's the best way for them 545 00:12:50,833 --> 00:12:53,500 to work together. 546 00:12:53,500 --> 00:12:54,958 - You guys finished work? 547 00:12:54,958 --> 00:12:56,958 - No, we gonna go back. 548 00:12:54,958 --> 00:12:56,958 - We're gonna go back and work. 549 00:12:56,958 --> 00:12:59,625 - Gonna work till like 9:00. 550 00:12:56,958 --> 00:12:59,625 [laughter] 551 00:12:59,625 --> 00:13:03,125 - They really worked hard to 552 00:12:59,625 --> 00:13:03,125 create a community of people, 553 00:13:03,125 --> 00:13:05,208 but where they're interacting, 554 00:13:05,291 --> 00:13:07,958 and they're spurring 555 00:13:05,291 --> 00:13:07,958 each other's ideas. 556 00:13:07,958 --> 00:13:10,500 - If you give them freedom, 557 00:13:07,958 --> 00:13:10,500 they will amaze you. 558 00:13:10,500 --> 00:13:13,125 They'll surprise you with 559 00:13:10,500 --> 00:13:13,125 what they come up with. 560 00:13:13,125 --> 00:13:14,458 - The venture capital is that 561 00:13:14,458 --> 00:13:17,333 you need to bring in 562 00:13:14,458 --> 00:13:17,333 a professional CEO. 563 00:13:17,333 --> 00:13:19,125 You guys are geniuses, 564 00:13:19,208 --> 00:13:20,541 you're, you know, 565 00:13:19,208 --> 00:13:20,541 you have all these ideas, 566 00:13:20,625 --> 00:13:22,500 but you don't know 567 00:13:20,625 --> 00:13:22,500 how to manage anything. 568 00:13:22,583 --> 00:13:23,958 So they hired Eric Schmidt, 569 00:13:23,958 --> 00:13:25,541 and he became the 570 00:13:23,958 --> 00:13:25,541 grown-up in the room. 571 00:13:25,625 --> 00:13:29,500 - What's the one thing 572 00:13:25,625 --> 00:13:29,500 each of you worry about most? 573 00:13:29,583 --> 00:13:30,666 - In my case, 574 00:13:29,583 --> 00:13:30,666 Larry and Sergey. 575 00:13:30,750 --> 00:13:32,500 No, just kidding... 576 00:13:30,750 --> 00:13:32,500 [laughs] 577 00:13:32,500 --> 00:13:34,750 Go ahead. 578 00:13:34,833 --> 00:13:37,500 - Eric and Larry. 579 00:13:34,833 --> 00:13:37,500 [laughter] 580 00:13:37,500 --> 00:13:40,208 - I don't think any of us 581 00:13:37,500 --> 00:13:40,208 expected Google 582 00:13:40,291 --> 00:13:43,875 to become as big and 583 00:13:40,291 --> 00:13:43,875 as dominant as they did. 584 00:13:43,958 --> 00:13:46,208 - Google has become 585 00:13:43,958 --> 00:13:46,208 more than a verb. 586 00:13:46,208 --> 00:13:48,041 It's become part 587 00:13:46,208 --> 00:13:48,041 of our culture. 588 00:13:48,041 --> 00:13:51,041 - One day you're using Yahoo! 589 00:13:48,041 --> 00:13:51,041 to search things, 590 00:13:51,125 --> 00:13:53,666 and then who even knows 591 00:13:51,125 --> 00:13:53,666 how you changed, 592 00:13:53,666 --> 00:13:55,833 and then you started using 593 00:13:53,666 --> 00:13:55,833 Google, and this was so easy. 594 00:13:55,916 --> 00:13:58,666 - It came up Yahoo. 595 00:13:55,916 --> 00:13:58,666 Why did you switch to Google? 596 00:13:58,750 --> 00:14:00,583 - 'Cause I picked Google 597 00:13:58,750 --> 00:14:00,583 all the time 598 00:14:00,666 --> 00:14:03,208 when I look for something. 599 00:14:00,666 --> 00:14:03,208 I don't know why. 600 00:14:03,291 --> 00:14:06,041 - That one decision-- 601 00:14:03,291 --> 00:14:06,041 "I'm gonna Google it"-- 602 00:14:06,125 --> 00:14:09,208 every individual who made it 603 00:14:06,125 --> 00:14:09,208 contributed to a 604 00:14:09,208 --> 00:14:11,375 multi-billion dollar decision. 605 00:14:11,375 --> 00:14:13,708 - Now this privately-owned, 606 00:14:11,375 --> 00:14:13,708 popular search engine 607 00:14:13,708 --> 00:14:16,208 is going public, 608 00:14:13,708 --> 00:14:16,208 and you can buy a piece of it. 609 00:14:16,208 --> 00:14:17,750 The company announced 610 00:14:16,208 --> 00:14:17,750 it will be selling 611 00:14:17,750 --> 00:14:21,750 $2.7 billion in stock in 612 00:14:17,750 --> 00:14:21,750 the most highly-anticipated 613 00:14:21,750 --> 00:14:23,916 initial public offering 614 00:14:21,750 --> 00:14:23,916 in years. 615 00:14:23,916 --> 00:14:25,708 - If the IPO of Google 616 00:14:23,916 --> 00:14:25,708 goes well, 617 00:14:25,708 --> 00:14:28,208 that could open the door 618 00:14:25,708 --> 00:14:28,208 for a lot of other IPOs. 619 00:14:28,291 --> 00:14:29,708 - In the early 2000s, 620 00:14:29,708 --> 00:14:33,208 Silicon Valley was recovering 621 00:14:29,708 --> 00:14:33,208 from the .com bust. 622 00:14:33,291 --> 00:14:35,083 It was a wasteland. 623 00:14:35,166 --> 00:14:38,041 But Google going public 624 00:14:35,166 --> 00:14:38,041 changed that, 625 00:14:38,125 --> 00:14:40,958 and you really saw the 626 00:14:38,125 --> 00:14:40,958 rebirth of Silicon Valley. 627 00:14:41,041 --> 00:14:44,125 - I think their story 628 00:14:41,041 --> 00:14:44,125 reminds us of 629 00:14:44,208 --> 00:14:45,625 the magic of the Internet. 630 00:14:45,708 --> 00:14:49,208 And that magic is 631 00:14:45,708 --> 00:14:49,208 that an underdog... 632 00:14:49,291 --> 00:14:50,708 [laughing] 633 00:14:49,291 --> 00:14:50,708 Can become an overlord. 634 00:14:52,083 --> 00:14:55,250 - Even if you were somewhat 635 00:14:52,083 --> 00:14:55,250 Internet-savvy only, 636 00:14:55,333 --> 00:14:57,458 you may not know 637 00:14:55,333 --> 00:14:57,458 about Friendster. 638 00:14:57,541 --> 00:14:58,916 It is one of the 639 00:14:57,541 --> 00:14:58,916 fastest-growing sites 640 00:14:59,000 --> 00:15:00,250 on the Internet, 641 00:15:00,333 --> 00:15:03,250 with millions of 642 00:15:00,333 --> 00:15:03,250 registered users so far. 643 00:15:03,333 --> 00:15:04,750 Why so popular? 644 00:15:04,750 --> 00:15:06,875 Because it shows the world 645 00:15:04,750 --> 00:15:06,875 is not such a big 646 00:15:06,958 --> 00:15:08,583 and unfriendly place after all. 647 00:15:08,666 --> 00:15:10,250 [bright music] 648 00:15:10,333 --> 00:15:12,791 - Social media didn't exist 649 00:15:10,333 --> 00:15:12,791 in the '90s at all. 650 00:15:12,875 --> 00:15:17,208 It really started in 651 00:15:12,875 --> 00:15:17,208 the 2000s with Friendster. 652 00:15:17,208 --> 00:15:18,583 - We've all heard that 653 00:15:18,583 --> 00:15:20,458 everybody on Earth is 654 00:15:18,583 --> 00:15:20,458 connected, but now, 655 00:15:20,541 --> 00:15:22,708 there's a website 656 00:15:20,541 --> 00:15:22,708 called Friendster. 657 00:15:22,791 --> 00:15:25,708 - It's a new Internet service 658 00:15:22,791 --> 00:15:25,708 that people can access for free 659 00:15:25,708 --> 00:15:27,125 at our website at 660 00:15:25,708 --> 00:15:27,125 Friendster.com that 661 00:15:27,208 --> 00:15:29,916 allows people to network online 662 00:15:27,208 --> 00:15:29,916 with their friends. 663 00:15:29,916 --> 00:15:33,750 - So within four degrees of me 664 00:15:29,916 --> 00:15:33,750 are 700,000 people... 665 00:15:33,750 --> 00:15:35,750 [laughs] 666 00:15:33,750 --> 00:15:35,750 That's crazy. 667 00:15:35,750 --> 00:15:38,041 - There are 2 million people 668 00:15:35,750 --> 00:15:38,041 on this site. 669 00:15:38,041 --> 00:15:40,625 What you do is you put in 670 00:15:38,041 --> 00:15:40,625 bios of yourself, 671 00:15:40,625 --> 00:15:42,291 and pictures of your friends. 672 00:15:42,375 --> 00:15:45,291 And then you look to see 673 00:15:42,375 --> 00:15:45,291 who is connected to whom. 674 00:15:45,375 --> 00:15:47,500 - Social media relies on this 675 00:15:47,583 --> 00:15:50,666 really ingenious premise 676 00:15:47,583 --> 00:15:50,666 called, "web 2.0." 677 00:15:50,750 --> 00:15:52,250 And what that means is that 678 00:15:52,250 --> 00:15:54,791 instead of the 679 00:15:52,250 --> 00:15:54,791 owner of the website 680 00:15:54,791 --> 00:15:56,750 composing the words 681 00:15:54,791 --> 00:15:56,750 and the pictures, 682 00:15:56,833 --> 00:15:58,916 we, the people, do that. 683 00:15:58,916 --> 00:16:01,500 - There are many social 684 00:15:58,916 --> 00:16:01,500 networking sites on the Web, 685 00:16:01,583 --> 00:16:03,291 but in just a year's time, 686 00:16:03,291 --> 00:16:06,125 Myspace.com has outpaced 687 00:16:03,291 --> 00:16:06,125 all the others. 688 00:16:06,125 --> 00:16:07,458 - Now, within Myspace, 689 00:16:07,458 --> 00:16:09,916 it's based on what 690 00:16:07,458 --> 00:16:09,916 your friends recommend, 691 00:16:10,000 --> 00:16:12,583 or what other Myspace 692 00:16:10,000 --> 00:16:12,583 members recommend. 693 00:16:12,666 --> 00:16:14,916 And that's how the 694 00:16:12,666 --> 00:16:14,916 discovery of content 695 00:16:14,916 --> 00:16:16,458 and culture is taking place. 696 00:16:16,458 --> 00:16:20,250 - This younger generation 697 00:16:16,458 --> 00:16:20,250 got that what was magical 698 00:16:20,250 --> 00:16:22,458 about the Internet 699 00:16:20,250 --> 00:16:22,458 was connection. 700 00:16:22,458 --> 00:16:25,333 - Myspace.com is now the 701 00:16:22,458 --> 00:16:25,333 fastest-growing site 702 00:16:25,416 --> 00:16:29,791 on the Web with 110 million 703 00:16:25,416 --> 00:16:29,791 monthly users worldwide. 704 00:16:29,791 --> 00:16:31,666 - You would log onto Myspace, 705 00:16:31,666 --> 00:16:34,625 and there were 706 00:16:31,666 --> 00:16:34,625 your top eight friends. 707 00:16:34,708 --> 00:16:37,708 And I remember there being 708 00:16:34,708 --> 00:16:37,708 drama between people about, 709 00:16:37,791 --> 00:16:39,708 "Why am I not in 710 00:16:37,791 --> 00:16:39,708 your top eight?" 711 00:16:39,791 --> 00:16:42,500 And everybody, 712 00:16:39,791 --> 00:16:42,500 no matter how lonely, 713 00:16:42,500 --> 00:16:45,708 had at least one friend--Tom. 714 00:16:45,791 --> 00:16:47,958 - How many friends 715 00:16:45,791 --> 00:16:47,958 do you officially have now? 716 00:16:47,958 --> 00:16:49,958 - I think we're up to 717 00:16:47,958 --> 00:16:49,958 175 million. 718 00:16:50,041 --> 00:16:51,500 - For your official friends? 719 00:16:50,041 --> 00:16:51,500 - Yeah. 720 00:16:51,583 --> 00:16:54,208 - I think that because Myspace 721 00:16:51,583 --> 00:16:54,208 allows people to be anonymous, 722 00:16:54,291 --> 00:16:56,625 it's also more open to people 723 00:16:54,291 --> 00:16:56,625 who are a little bit weird, 724 00:16:56,625 --> 00:16:57,958 a little bit different, 725 00:16:56,625 --> 00:16:57,958 a little bit-- 726 00:16:57,958 --> 00:17:01,333 maybe who want to play games 727 00:16:57,958 --> 00:17:01,333 with their identity. 728 00:17:01,333 --> 00:17:02,916 - Move over, Myspace. 729 00:17:03,000 --> 00:17:05,208 College students across 730 00:17:03,000 --> 00:17:05,208 the country are quote, 731 00:17:05,208 --> 00:17:07,208 "Facebooking their classmates." 732 00:17:07,291 --> 00:17:09,875 - Mark, if somebody was 733 00:17:07,291 --> 00:17:09,875 to put the question to you 734 00:17:09,958 --> 00:17:12,500 about the magnitude of what 735 00:17:09,958 --> 00:17:12,500 you think you've launched, 736 00:17:12,583 --> 00:17:16,208 how big do you think your 737 00:17:12,583 --> 00:17:16,208 product or your service is? 738 00:17:16,291 --> 00:17:18,208 - Well, 739 00:17:16,291 --> 00:17:18,208 it's impossible to tell. 740 00:17:18,208 --> 00:17:20,041 When we first launched, 741 00:17:18,208 --> 00:17:20,041 we were hoping for, 742 00:17:20,041 --> 00:17:22,375 you know, 743 00:17:20,041 --> 00:17:22,375 maybe 400, 500 people. 744 00:17:22,375 --> 00:17:23,875 And now we're at 745 00:17:22,375 --> 00:17:23,875 100,000 people. 746 00:17:23,958 --> 00:17:26,541 So, who knows where 747 00:17:23,958 --> 00:17:26,541 we're going next. 748 00:17:26,625 --> 00:17:29,583 - Mark Zuckerberg started 749 00:17:26,625 --> 00:17:29,583 this company when he was 19. 750 00:17:29,666 --> 00:17:31,583 The culture at Facebook 751 00:17:29,666 --> 00:17:31,583 was very bro-y. 752 00:17:31,666 --> 00:17:34,000 There were people 753 00:17:31,666 --> 00:17:34,000 in the Facebook offices 754 00:17:34,000 --> 00:17:35,750 doing keg stands 755 00:17:34,000 --> 00:17:35,750 and Mark Zuckerberg 756 00:17:35,833 --> 00:17:37,666 doing an interview 757 00:17:35,833 --> 00:17:37,666 in his bare feet. 758 00:17:37,666 --> 00:17:39,708 - Should I put the beer down? 759 00:17:37,666 --> 00:17:39,708 - No, no. 760 00:17:39,708 --> 00:17:41,041 Actually, I'm gonna 761 00:17:39,708 --> 00:17:41,041 mention the beer. 762 00:17:41,041 --> 00:17:43,333 [laughter] 763 00:17:41,041 --> 00:17:43,333 What are we celebrating, Mark? 764 00:17:43,333 --> 00:17:44,958 - I just got 3 million users. 765 00:17:45,041 --> 00:17:46,583 - 3 million users. 766 00:17:45,041 --> 00:17:46,583 - Yeah. 767 00:17:46,583 --> 00:17:48,250 - And how long has 768 00:17:46,583 --> 00:17:48,250 Facebook been around? 769 00:17:48,333 --> 00:17:50,625 - Not that long. 770 00:17:50,708 --> 00:17:52,208 A little more than a year. 771 00:17:52,208 --> 00:17:54,958 - This is a 19-year-old kid 772 00:17:52,208 --> 00:17:54,958 who had dropped out of school 773 00:17:55,041 --> 00:17:56,875 and was basically just 774 00:17:55,041 --> 00:17:56,875 trying to build something 775 00:17:56,875 --> 00:17:58,291 that college students 776 00:17:56,875 --> 00:17:58,291 would use. 777 00:17:58,375 --> 00:18:01,041 - I just threw it together 778 00:17:58,375 --> 00:18:01,041 one week in January 779 00:18:01,041 --> 00:18:02,750 and launched it for Harvard. 780 00:18:02,750 --> 00:18:05,208 - This was in your dorm room? 781 00:18:02,750 --> 00:18:05,208 - Yeah. 782 00:18:05,208 --> 00:18:07,125 - You launched Facebook 783 00:18:05,208 --> 00:18:07,125 in your dorm room? 784 00:18:07,208 --> 00:18:08,458 - Yeah. 785 00:18:08,541 --> 00:18:10,750 - There was something 786 00:18:08,541 --> 00:18:10,750 about Facebook that 787 00:18:10,833 --> 00:18:13,708 just took off like wildfire. 788 00:18:13,791 --> 00:18:15,458 [keyboard clacking] 789 00:18:13,791 --> 00:18:15,458 - For three years, 790 00:18:15,541 --> 00:18:17,625 the phenomenally popular 791 00:18:15,541 --> 00:18:17,625 website, Facebook, 792 00:18:17,708 --> 00:18:19,416 operated as a 793 00:18:17,708 --> 00:18:19,416 raucous college dorm, 794 00:18:19,500 --> 00:18:21,708 limited to those in school 795 00:18:19,500 --> 00:18:21,708 and recent graduates. 796 00:18:21,708 --> 00:18:23,041 But late last year, 797 00:18:23,041 --> 00:18:25,125 the gates were thrown open 798 00:18:23,041 --> 00:18:25,125 and older folks, 799 00:18:25,208 --> 00:18:27,583 people like, ah, me, 800 00:18:25,208 --> 00:18:27,583 were allowed in. 801 00:18:27,583 --> 00:18:30,458 - Facebook evolved into a way 802 00:18:27,583 --> 00:18:30,458 for you to keep in touch 803 00:18:30,541 --> 00:18:32,416 with all the people that 804 00:18:30,541 --> 00:18:32,416 you want to connect with. 805 00:18:32,416 --> 00:18:35,125 Essentially, you could describe 806 00:18:32,416 --> 00:18:35,125 the Internet in that same way. 807 00:18:35,208 --> 00:18:37,125 The real value is helping us 808 00:18:37,208 --> 00:18:39,000 to connect with each other 809 00:18:37,208 --> 00:18:39,000 more, virtually. 810 00:18:39,083 --> 00:18:40,958 - Do you have a budding 811 00:18:39,083 --> 00:18:40,958 entertainment star 812 00:18:40,958 --> 00:18:42,625 sitting at the breakfast table 813 00:18:40,958 --> 00:18:42,625 with you right now? 814 00:18:42,708 --> 00:18:44,125 Well, thousands of people 815 00:18:44,208 --> 00:18:46,291 are getting their 816 00:18:44,208 --> 00:18:46,291 15 minutes of fame 817 00:18:46,375 --> 00:18:49,458 thanks to a hot, 818 00:18:46,375 --> 00:18:49,458 new website called YouTube. 819 00:18:49,541 --> 00:18:51,166 - There are all these services 820 00:18:49,541 --> 00:18:51,166 to share photos 821 00:18:51,250 --> 00:18:53,125 with one another, but when we 822 00:18:51,250 --> 00:18:53,125 tried to share the videos, 823 00:18:53,208 --> 00:18:54,791 you know, we tried to 824 00:18:53,208 --> 00:18:54,791 email them back to one another, 825 00:18:54,875 --> 00:18:56,125 it kept bouncing back. 826 00:18:56,208 --> 00:18:57,791 And so, we thought 827 00:18:56,208 --> 00:18:57,791 a lot of people 828 00:18:57,875 --> 00:18:59,250 were gonna have 829 00:18:57,875 --> 00:18:59,250 this same problem. 830 00:18:59,333 --> 00:19:01,083 - Watching videos online 831 00:18:59,333 --> 00:19:01,083 was hard. 832 00:19:01,083 --> 00:19:02,416 Sometimes you didn't have 833 00:19:02,416 --> 00:19:03,833 the right plug-in 834 00:19:02,416 --> 00:19:03,833 to watch the video, 835 00:19:03,916 --> 00:19:06,416 and YouTube kind of 836 00:19:03,916 --> 00:19:06,416 ingeniously fixed all that. 837 00:19:06,500 --> 00:19:08,500 And it did it by 838 00:19:06,500 --> 00:19:08,500 just hosting the video. 839 00:19:08,500 --> 00:19:12,000 [dramatic music] 840 00:19:12,000 --> 00:19:13,833 - It was such a simple thing. 841 00:19:12,000 --> 00:19:13,833 "All right. 842 00:19:13,916 --> 00:19:17,166 Let's have a repository online 843 00:19:13,916 --> 00:19:17,166 where people can post videos." 844 00:19:17,250 --> 00:19:18,791 I think they just executed it 845 00:19:18,875 --> 00:19:20,458 a little better 846 00:19:18,875 --> 00:19:20,458 than anyone else. 847 00:19:20,541 --> 00:19:23,333 - What we're creating is a 848 00:19:20,541 --> 00:19:23,333 stage for everyone to be seen. 849 00:19:23,416 --> 00:19:26,333 - In other words... 850 00:19:26,416 --> 00:19:29,666 - And they benefitted 851 00:19:26,416 --> 00:19:29,666 from viral videos. 852 00:19:29,666 --> 00:19:31,666 - I can't do it. 853 00:19:31,750 --> 00:19:34,625 We'll do it live. 854 00:19:31,750 --> 00:19:34,625 - Okay. 855 00:19:34,708 --> 00:19:36,208 - We'll do it live! 856 00:19:34,708 --> 00:19:36,208 [bleep] it! 857 00:19:36,291 --> 00:19:39,708 - Suddenly, we can see 858 00:19:36,291 --> 00:19:39,708 into other people's lives 859 00:19:39,791 --> 00:19:42,333 in ways that never 860 00:19:39,791 --> 00:19:42,333 would've been possible before. 861 00:19:42,333 --> 00:19:43,625 - ♪ Chocolate rain ♪ 862 00:19:43,708 --> 00:19:45,958 - ♪ Nu ma, nu ma, 863 00:19:43,708 --> 00:19:45,958 nu ma iei ♪ 864 00:19:46,041 --> 00:19:47,791 - And it's not just 865 00:19:46,041 --> 00:19:47,791 each other's home movies... 866 00:19:47,875 --> 00:19:49,375 - Alan! Alan! 867 00:19:49,375 --> 00:19:50,750 Alan! Alan! 868 00:19:50,833 --> 00:19:52,208 - [screams] 869 00:19:52,208 --> 00:19:55,000 - It's each other's great 870 00:19:52,208 --> 00:19:55,000 moments of comedy or tragedy. 871 00:19:55,083 --> 00:19:56,916 - Stop. 872 00:19:57,000 --> 00:19:58,708 - Oh-- 873 00:19:57,000 --> 00:19:58,708 [yelps] 874 00:19:58,791 --> 00:20:01,708 Ow, ow, ow, ow, oww, ow. 875 00:20:01,791 --> 00:20:03,041 - Oh no. Oh, dear. 876 00:20:01,791 --> 00:20:03,041 - Oh, boy. 877 00:20:03,125 --> 00:20:04,500 I think she's 878 00:20:03,125 --> 00:20:04,500 actually hurt there. 879 00:20:04,500 --> 00:20:06,250 - No, I think she is. 880 00:20:04,500 --> 00:20:06,250 - Yeah, she's hurt. 881 00:20:06,333 --> 00:20:09,541 - For a long time, the most 882 00:20:06,333 --> 00:20:09,541 viewed video on YouTube 883 00:20:09,541 --> 00:20:12,041 was a baby biting 884 00:20:09,541 --> 00:20:12,041 a three year old's finger. 885 00:20:12,125 --> 00:20:13,875 - Ow! 886 00:20:13,875 --> 00:20:15,208 [cries] 887 00:20:15,208 --> 00:20:18,666 Charlie, that really hurt. 888 00:20:22,000 --> 00:20:24,708 - [laughs] 889 00:20:25,500 --> 00:20:28,041 - A billion people 890 00:20:25,500 --> 00:20:28,041 watched that. 891 00:20:28,125 --> 00:20:32,041 - [laughs] 892 00:20:28,125 --> 00:20:32,041 Baby. 893 00:20:32,041 --> 00:20:34,541 - YouTube was kind of 894 00:20:32,041 --> 00:20:34,541 the primordial ooze 895 00:20:34,541 --> 00:20:37,250 from which some of the great, 896 00:20:37,333 --> 00:20:39,750 popular icons of 897 00:20:37,333 --> 00:20:39,750 Internet culture emerged. 898 00:20:39,833 --> 00:20:42,708 [Rick Astley's 899 00:20:39,833 --> 00:20:42,708 "Never Gonna Give You Up"] 900 00:20:42,791 --> 00:20:45,375 ♪ ♪ 901 00:20:45,375 --> 00:20:46,708 - You've been rickrolled. 902 00:20:46,708 --> 00:20:48,583 - It wasn't so much web 2.0. 903 00:20:48,666 --> 00:20:51,708 It was the beginning 904 00:20:48,666 --> 00:20:51,708 of world 2.0. 905 00:20:51,708 --> 00:20:53,750 - By the middle of the 2000s, 906 00:20:53,833 --> 00:20:56,041 we were dependent 907 00:20:53,833 --> 00:20:56,041 on the Internet 908 00:20:56,041 --> 00:20:58,083 like we were dependent on food. 909 00:20:58,166 --> 00:21:02,250 - How often are Kayla, 910 00:20:58,166 --> 00:21:02,250 Hailey, and Lonnie 911 00:21:02,250 --> 00:21:03,708 on the computer, 912 00:21:02,250 --> 00:21:03,708 on the cell phone, 913 00:21:03,791 --> 00:21:05,291 or texting? 914 00:21:03,791 --> 00:21:05,291 - [laughs softly] 915 00:21:05,375 --> 00:21:08,041 Yeah, the question should be, 916 00:21:05,375 --> 00:21:08,041 how often aren't they? 917 00:21:08,041 --> 00:21:10,916 - With the growing popularity 918 00:21:08,041 --> 00:21:10,916 of personal digital assistants, 919 00:21:10,916 --> 00:21:12,541 Blackberrys, 920 00:21:10,916 --> 00:21:12,541 and the ilk there, 921 00:21:12,625 --> 00:21:15,000 people can be reached 922 00:21:12,625 --> 00:21:15,000 anywhere, anytime. 923 00:21:15,083 --> 00:21:16,333 Is that a good thing? 924 00:21:16,416 --> 00:21:18,125 - All kinds of things 925 00:21:16,416 --> 00:21:18,125 have changed 926 00:21:18,208 --> 00:21:20,500 because of the smartphone. 927 00:21:20,583 --> 00:21:22,583 So, there are new rules. 928 00:21:22,666 --> 00:21:25,583 Are you allowed to have your 929 00:21:22,666 --> 00:21:25,583 phone at the dinner table? 930 00:21:25,583 --> 00:21:27,083 Should you be 931 00:21:25,583 --> 00:21:27,083 looking at your phone 932 00:21:27,083 --> 00:21:28,833 on the sidewalk 933 00:21:27,083 --> 00:21:28,833 on a busy street? 934 00:21:28,916 --> 00:21:30,166 People are looking 935 00:21:28,916 --> 00:21:30,166 at their cell phones 936 00:21:30,250 --> 00:21:31,500 while they're driving. 937 00:21:31,583 --> 00:21:33,833 - There is a price that 938 00:21:31,583 --> 00:21:33,833 you pay with respect 939 00:21:33,916 --> 00:21:36,250 to that accessibility and 940 00:21:33,916 --> 00:21:36,250 that is it's always there. 941 00:21:36,250 --> 00:21:38,958 It's always available. 942 00:21:36,250 --> 00:21:38,958 You never really unplug. 943 00:21:39,041 --> 00:21:40,583 - With all these 944 00:21:39,041 --> 00:21:40,583 new technologies, 945 00:21:40,666 --> 00:21:43,583 we've become a society 946 00:21:40,666 --> 00:21:43,583 of instant gratification. 947 00:21:43,583 --> 00:21:45,250 - I wanna download 948 00:21:43,583 --> 00:21:45,250 this movie now. 949 00:21:45,333 --> 00:21:47,833 I want this song now. 950 00:21:45,333 --> 00:21:47,833 I want to read the news now. 951 00:21:47,916 --> 00:21:49,625 - Instant gratification 952 00:21:47,916 --> 00:21:49,625 has changed 953 00:21:49,625 --> 00:21:51,583 our social etiquette too. 954 00:21:51,583 --> 00:21:54,458 We now unfriend people. 955 00:21:51,583 --> 00:21:54,458 We follow people. 956 00:21:54,458 --> 00:21:56,375 We write on their wall. 957 00:21:54,458 --> 00:21:56,375 [keyboard clacking] 958 00:21:56,458 --> 00:22:00,000 In the 90s, 959 00:21:56,458 --> 00:22:00,000 that was considered graffiti. 960 00:22:00,083 --> 00:22:01,500 - The more time people 961 00:22:01,583 --> 00:22:03,166 spend on the Internet 962 00:22:01,583 --> 00:22:03,166 in front of their computer, 963 00:22:03,166 --> 00:22:06,791 the less contact they have 964 00:22:03,166 --> 00:22:06,791 with other human beings. 965 00:22:06,791 --> 00:22:08,958 - Every new technology 966 00:22:06,791 --> 00:22:08,958 through history 967 00:22:09,041 --> 00:22:11,333 has been called the 968 00:22:09,041 --> 00:22:11,333 doomsday for our children. 969 00:22:11,333 --> 00:22:12,666 Our grandparents 970 00:22:11,333 --> 00:22:12,666 were told that 971 00:22:12,666 --> 00:22:14,041 the radio would 972 00:22:12,666 --> 00:22:14,041 rot their brains. 973 00:22:14,125 --> 00:22:16,500 Our parents were told that 974 00:22:14,125 --> 00:22:16,500 TV would rot their brains. 975 00:22:16,500 --> 00:22:18,625 We tell our kids that 976 00:22:16,500 --> 00:22:18,625 the Internet and their-- 977 00:22:18,625 --> 00:22:20,458 their smartphones 978 00:22:18,625 --> 00:22:20,458 will rot their brains. 979 00:22:20,541 --> 00:22:21,791 It doesn't. 980 00:22:21,875 --> 00:22:23,500 So, things change, 981 00:22:23,583 --> 00:22:25,041 but that doesn't mean 982 00:22:23,583 --> 00:22:25,041 things are worse. 983 00:22:26,083 --> 00:22:27,625 - Hello. 984 00:22:26,083 --> 00:22:27,625 I'm a Mac. 985 00:22:27,708 --> 00:22:29,916 - And I'm a PC... 986 00:22:27,708 --> 00:22:29,916 [sneezes] 987 00:22:30,000 --> 00:22:31,250 - Gesundheit. 988 00:22:30,000 --> 00:22:31,250 You okay? 989 00:22:31,333 --> 00:22:33,791 - No, I have that virus 990 00:22:31,333 --> 00:22:33,791 that's going around. 991 00:22:33,791 --> 00:22:35,250 - During the 2000s, 992 00:22:35,333 --> 00:22:37,791 there was the long-running 993 00:22:35,333 --> 00:22:37,791 ad campaign of Apple that, 994 00:22:37,791 --> 00:22:39,458 "I'm a Mac. 995 00:22:37,791 --> 00:22:39,458 I'm a PC." 996 00:22:39,458 --> 00:22:43,125 And it was the cool versus the, 997 00:22:39,458 --> 00:22:43,125 you know, sort of anal. 998 00:22:43,125 --> 00:22:44,625 - I'm into doing 999 00:22:43,125 --> 00:22:44,625 fun stuff like movies, 1000 00:22:44,625 --> 00:22:46,166 music, podcasts, 1001 00:22:44,625 --> 00:22:46,166 stuff like that. 1002 00:22:46,250 --> 00:22:47,958 - I also do fun stuff 1003 00:22:46,250 --> 00:22:47,958 like timesheets 1004 00:22:47,958 --> 00:22:49,375 and spreadsheets 1005 00:22:47,958 --> 00:22:49,375 and pie charts. 1006 00:22:49,458 --> 00:22:52,833 - The idea was that PC 1007 00:22:49,458 --> 00:22:52,833 was stuck in its old ways 1008 00:22:52,833 --> 00:22:54,458 and corporate. 1009 00:22:54,458 --> 00:22:56,791 And that was the thing that 1010 00:22:54,458 --> 00:22:56,791 inflamed you when you watched. 1011 00:22:56,791 --> 00:22:59,458 I wanna be like Justin Long. 1012 00:22:56,791 --> 00:22:59,458 I wanna be like the Mac. 1013 00:22:59,541 --> 00:23:01,625 I wanna be fun 1014 00:22:59,541 --> 00:23:01,625 and young and hip. 1015 00:23:01,625 --> 00:23:03,000 I don't wanna be 1016 00:23:01,625 --> 00:23:03,000 like John Hodgman, 1017 00:23:03,083 --> 00:23:04,333 who was hilarious. 1018 00:23:04,416 --> 00:23:06,125 - [whispers] 1019 00:23:04,416 --> 00:23:06,125 You never saw me. 1020 00:23:06,125 --> 00:23:08,041 - [whispers] 1021 00:23:06,125 --> 00:23:08,041 Never saw who? 1022 00:23:08,125 --> 00:23:10,666 - Me, PC. 1023 00:23:08,125 --> 00:23:10,666 Oh! 1024 00:23:10,666 --> 00:23:13,291 - Part of Apple's marketing 1025 00:23:10,666 --> 00:23:13,291 success was Steve Jobs, 1026 00:23:13,291 --> 00:23:15,666 who cared a lot 1027 00:23:13,291 --> 00:23:15,666 about advertising 1028 00:23:15,750 --> 00:23:17,125 and what those commercials 1029 00:23:15,750 --> 00:23:17,125 looked like. 1030 00:23:17,208 --> 00:23:18,500 [cheers and applause] 1031 00:23:18,583 --> 00:23:21,166 - So, that ad got a certain 1032 00:23:18,583 --> 00:23:21,166 amount of attention. 1033 00:23:21,166 --> 00:23:24,333 - Steve Jobs turned Apple 1034 00:23:21,166 --> 00:23:24,333 from a computer company 1035 00:23:24,333 --> 00:23:25,833 into a consumer 1036 00:23:24,333 --> 00:23:25,833 products company. 1037 00:23:25,916 --> 00:23:28,500 And the consumer products is 1038 00:23:25,916 --> 00:23:28,500 what not only saved Apple, 1039 00:23:28,500 --> 00:23:30,208 but made it the hottest thing 1040 00:23:30,208 --> 00:23:31,916 in the history of the world, 1041 00:23:30,208 --> 00:23:31,916 practically. 1042 00:23:32,000 --> 00:23:34,333 - All eyes are 1043 00:23:32,000 --> 00:23:34,333 on Apple Computers 1044 00:23:34,333 --> 00:23:35,875 and Steve Jobs this morning. 1045 00:23:35,875 --> 00:23:38,708 In just a few hours, Jobs will 1046 00:23:35,875 --> 00:23:38,708 make a very big announcement. 1047 00:23:38,708 --> 00:23:41,208 And that's all we know. 1048 00:23:41,208 --> 00:23:43,416 - This is a day 1049 00:23:41,208 --> 00:23:43,416 I've been looking forward to 1050 00:23:43,500 --> 00:23:46,041 for two and a half years. 1051 00:23:43,500 --> 00:23:46,041 [cheers and applause] 1052 00:23:46,041 --> 00:23:48,750 - Steve Jobs 1053 00:23:46,041 --> 00:23:48,750 took the stage and said, 1054 00:23:48,833 --> 00:23:50,250 "Today at the Apple keynote, 1055 00:23:50,333 --> 00:23:53,208 we're going to unveil 1056 00:23:50,333 --> 00:23:53,208 three products." 1057 00:23:53,291 --> 00:23:54,833 - Three things-- 1058 00:23:54,916 --> 00:23:57,541 a widescreen iPod 1059 00:23:54,916 --> 00:23:57,541 with touch controls, 1060 00:23:57,625 --> 00:23:59,750 a revolutionary mobile phone, 1061 00:23:59,750 --> 00:24:02,791 and a breakthrough Internet 1062 00:23:59,750 --> 00:24:02,791 communications device. 1063 00:24:02,875 --> 00:24:04,875 - And the crowd was going, 1064 00:24:02,875 --> 00:24:04,875 "Yay, three new products." 1065 00:24:04,958 --> 00:24:06,750 And he said, 1066 00:24:04,958 --> 00:24:06,750 "Let me say that again." 1067 00:24:06,833 --> 00:24:09,458 - An iPod, 1068 00:24:09,541 --> 00:24:12,083 a phone... 1069 00:24:09,541 --> 00:24:12,083 [laughter] 1070 00:24:12,166 --> 00:24:14,541 And an Internet communicator. 1071 00:24:14,625 --> 00:24:16,583 - These are not three products. 1072 00:24:16,583 --> 00:24:18,541 [cheers and applause] 1073 00:24:16,583 --> 00:24:18,541 - Are you getting it? 1074 00:24:18,541 --> 00:24:20,458 This is one device. 1075 00:24:22,583 --> 00:24:24,875 And we are calling it, 1076 00:24:24,875 --> 00:24:27,708 "iPhone." 1077 00:24:27,791 --> 00:24:30,708 - I remember my brain 1078 00:24:27,791 --> 00:24:30,708 was just exploding. 1079 00:24:30,708 --> 00:24:32,958 I'm like, "What? How? 1080 00:24:30,708 --> 00:24:32,958 Wait, how can you--what? 1081 00:24:33,041 --> 00:24:35,375 [stammers] 1082 00:24:33,041 --> 00:24:35,375 Explain this." 1083 00:24:35,458 --> 00:24:38,750 - Let's take a look at 1084 00:24:35,458 --> 00:24:38,750 a revolutionary phone. 1085 00:24:38,750 --> 00:24:41,250 - In decades past, 1086 00:24:38,750 --> 00:24:41,250 technology had moved in 1087 00:24:41,250 --> 00:24:44,791 relatively predictable, 1088 00:24:41,250 --> 00:24:44,791 generational cycles. 1089 00:24:44,791 --> 00:24:46,916 So you'd have a good sense 1090 00:24:44,791 --> 00:24:46,916 of what the next generation 1091 00:24:47,000 --> 00:24:48,916 of cell phones-- 1092 00:24:47,000 --> 00:24:48,916 what features they would have. 1093 00:24:49,000 --> 00:24:51,750 - We call it the pinch, 1094 00:24:49,000 --> 00:24:51,750 to make it bigger or smaller. 1095 00:24:51,833 --> 00:24:53,791 - The iPhone seemed 1096 00:24:51,833 --> 00:24:53,791 like a device that 1097 00:24:53,791 --> 00:24:55,500 had been beamed 1098 00:24:53,791 --> 00:24:55,500 into your hands 1099 00:24:55,583 --> 00:24:58,083 from ten or 15 years 1100 00:24:55,583 --> 00:24:58,083 in the future. 1101 00:24:58,083 --> 00:25:01,791 It skipped an entire generation 1102 00:24:58,083 --> 00:25:01,791 of technology, 1103 00:25:01,791 --> 00:25:03,416 maybe even two generations. 1104 00:25:03,500 --> 00:25:05,125 - It's the iPhone, 1105 00:25:05,125 --> 00:25:08,083 a new generation of gadget 1106 00:25:05,125 --> 00:25:08,083 that's a--a phone, 1107 00:25:08,083 --> 00:25:10,291 iPod, computer, 1108 00:25:08,083 --> 00:25:10,291 even a camera 1109 00:25:10,375 --> 00:25:11,791 all rolled up in one. 1110 00:25:11,791 --> 00:25:13,250 I don't know what it is, 1111 00:25:11,791 --> 00:25:13,250 but I want it. 1112 00:25:13,250 --> 00:25:15,333 [helicopter whirring] 1113 00:25:13,250 --> 00:25:15,333 - Take a look at this picture. 1114 00:25:15,416 --> 00:25:17,125 At first blush, 1115 00:25:15,416 --> 00:25:17,125 it looks something like 1116 00:25:17,125 --> 00:25:18,833 rescue workers 1117 00:25:17,125 --> 00:25:18,833 being applauded. 1118 00:25:18,916 --> 00:25:20,791 But as the camera widens out, 1119 00:25:20,875 --> 00:25:23,541 we see it is simply 1120 00:25:20,875 --> 00:25:23,541 the Apple store. 1121 00:25:23,625 --> 00:25:25,791 [cheers and applause] 1122 00:25:23,625 --> 00:25:25,791 - "I" day finally arrived. 1123 00:25:25,791 --> 00:25:28,333 And at the appointed hour, 1124 00:25:25,791 --> 00:25:28,333 the faithful 1125 00:25:28,333 --> 00:25:30,958 streamed into Apple stores 1126 00:25:28,333 --> 00:25:30,958 across the country. 1127 00:25:31,041 --> 00:25:33,708 - Yeah, he's a winner, 1128 00:25:31,041 --> 00:25:33,708 winner, chicken dinner. 1129 00:25:33,791 --> 00:25:35,833 Did you get one, Laura Ingle? 1130 00:25:35,833 --> 00:25:37,500 - [laughs] Not yet. 1131 00:25:35,833 --> 00:25:37,500 - Failure! 1132 00:25:37,500 --> 00:25:38,833 That's a failure! 1133 00:25:37,500 --> 00:25:38,833 - The lines... 1134 00:25:38,833 --> 00:25:41,000 - Here it is--the object 1135 00:25:38,833 --> 00:25:41,000 of all the attention, 1136 00:25:41,083 --> 00:25:42,666 all the affection 1137 00:25:41,083 --> 00:25:42,666 and all the hype. 1138 00:25:42,750 --> 00:25:44,125 And those umbrellas behind me-- 1139 00:25:44,208 --> 00:25:46,125 people waiting in the 1140 00:25:44,208 --> 00:25:46,125 hot California sun 1141 00:25:46,208 --> 00:25:47,625 to get their hands on one. 1142 00:25:47,708 --> 00:25:49,833 - The iPhone was 1143 00:25:47,708 --> 00:25:49,833 so transformative. 1144 00:25:49,916 --> 00:25:52,041 It gave people this sense 1145 00:25:49,916 --> 00:25:52,041 of what they got 1146 00:25:52,125 --> 00:25:53,500 when they first saw 1147 00:25:52,125 --> 00:25:53,500 the Internet. 1148 00:25:53,500 --> 00:25:54,875 It was like a magic trick. 1149 00:25:54,958 --> 00:25:58,708 - Oh, look how beautiful 1150 00:25:54,958 --> 00:25:58,708 and small it is. 1151 00:25:58,791 --> 00:26:00,791 - Apple makes it seamless, 1152 00:25:58,791 --> 00:26:00,791 makes it feel good, 1153 00:26:00,791 --> 00:26:03,166 makes you feel cool, 1154 00:26:00,791 --> 00:26:03,166 and that's what this thing is. 1155 00:26:03,250 --> 00:26:06,208 You can get everything that 1156 00:26:03,250 --> 00:26:06,208 this thing does already, 1157 00:26:06,291 --> 00:26:10,000 probably for less money, 1158 00:26:06,291 --> 00:26:10,000 but Apple has made it hot. 1159 00:26:10,083 --> 00:26:12,208 - It quickly became 1160 00:26:12,291 --> 00:26:15,041 the category killer for phones. 1161 00:26:15,041 --> 00:26:18,750 - 700,000 iPhones were sold 1162 00:26:15,041 --> 00:26:18,750 just in the first week. 1163 00:26:18,833 --> 00:26:21,500 Now, you may think 1164 00:26:18,833 --> 00:26:21,500 spending 500 or 600 bucks 1165 00:26:21,500 --> 00:26:24,708 on a cell phone/iPod is crazy. 1166 00:26:24,791 --> 00:26:27,666 - [laughs] 1167 00:26:24,791 --> 00:26:27,666 $500? 1168 00:26:27,750 --> 00:26:29,833 Fully subsidized with a plan? 1169 00:26:29,833 --> 00:26:32,666 I said, "That is the most 1170 00:26:29,833 --> 00:26:32,666 expensive phone in the world. 1171 00:26:32,666 --> 00:26:34,708 "And it doesn't appeal 1172 00:26:32,666 --> 00:26:34,708 to business customers 1173 00:26:34,791 --> 00:26:36,333 because it doesn't 1174 00:26:34,791 --> 00:26:36,333 have a keyboard." 1175 00:26:36,416 --> 00:26:40,750 - Microsoft thought 1176 00:26:36,416 --> 00:26:40,750 the iPhone was stupid. 1177 00:26:40,833 --> 00:26:43,208 They didn't get it. 1178 00:26:40,833 --> 00:26:43,208 They weren't Google. 1179 00:26:43,208 --> 00:26:45,000 - The Internet is abuzz 1180 00:26:43,208 --> 00:26:45,000 with word 1181 00:26:45,083 --> 00:26:46,916 Google is looking to expand 1182 00:26:46,916 --> 00:26:49,708 into the cell phone business. 1183 00:26:49,791 --> 00:26:52,083 - You guys may have heard 1184 00:26:49,791 --> 00:26:52,083 also that yesterday, 1185 00:26:52,083 --> 00:26:53,958 we made an 1186 00:26:52,083 --> 00:26:53,958 interesting announcement 1187 00:26:54,041 --> 00:26:55,291 about a little phone, 1188 00:26:55,375 --> 00:26:56,791 so I thought 1189 00:26:55,375 --> 00:26:56,791 I'd just show that. 1190 00:26:56,875 --> 00:27:00,083 - A year later, Google unveils 1191 00:26:56,875 --> 00:27:00,083 the Android phone, 1192 00:27:00,166 --> 00:27:02,208 which was Google's 1193 00:27:00,166 --> 00:27:02,208 attempt to capitalize 1194 00:27:02,291 --> 00:27:04,291 on the success 1195 00:27:02,291 --> 00:27:04,291 of Apple's formula. 1196 00:27:04,375 --> 00:27:07,375 The very first one comes out 1197 00:27:04,375 --> 00:27:07,375 next week from T-Mobile. 1198 00:27:07,375 --> 00:27:08,708 And it's called... 1199 00:27:08,791 --> 00:27:11,958 [heavenly singing] 1200 00:27:12,041 --> 00:27:15,625 The T-Mobile G1. 1201 00:27:12,041 --> 00:27:15,625 So what's it like? 1202 00:27:15,708 --> 00:27:17,291 Well, it's like, 1203 00:27:17,375 --> 00:27:20,083 uh, the iPhone. 1204 00:27:20,083 --> 00:27:21,750 - They had 1205 00:27:20,083 --> 00:27:21,750 striking similarities 1206 00:27:21,750 --> 00:27:24,208 in terms of both use 1207 00:27:21,750 --> 00:27:24,208 a touch interface. 1208 00:27:24,208 --> 00:27:26,958 Both had a big, wide screen 1209 00:27:24,208 --> 00:27:26,958 on the front there. 1210 00:27:27,041 --> 00:27:28,583 Both had Google maps. 1211 00:27:28,583 --> 00:27:30,916 Both had a way 1212 00:27:28,583 --> 00:27:30,916 to download apps 1213 00:27:31,000 --> 00:27:32,583 that worked very similarly 1214 00:27:31,000 --> 00:27:32,583 and some of the apps 1215 00:27:32,666 --> 00:27:33,916 were kind of the same. 1216 00:27:34,000 --> 00:27:35,666 - Slowly, 1217 00:27:34,000 --> 00:27:35,666 Google hopes it'll take over 1218 00:27:35,750 --> 00:27:37,083 the whole mobile market, 1219 00:27:37,166 --> 00:27:39,416 just as it has done 1220 00:27:37,166 --> 00:27:39,416 the Internet. 1221 00:27:39,416 --> 00:27:40,916 - Given their relationship, 1222 00:27:40,916 --> 00:27:43,458 Steve Jobs felt that he had 1223 00:27:40,916 --> 00:27:43,458 been betrayed by Google. 1224 00:27:43,541 --> 00:27:44,833 - You're on the board of Apple. 1225 00:27:44,916 --> 00:27:46,791 Any tension on the board 1226 00:27:44,916 --> 00:27:46,791 around the fact that 1227 00:27:46,791 --> 00:27:48,416 you guys are starting to get 1228 00:27:46,791 --> 00:27:48,416 into each other's business? 1229 00:27:48,416 --> 00:27:50,083 - As a board member at Apple, 1230 00:27:50,083 --> 00:27:53,500 Eric Schmidt was 1231 00:27:50,083 --> 00:27:53,500 privy to meetings 1232 00:27:53,583 --> 00:27:56,166 where the iPhone was discussed. 1233 00:27:56,250 --> 00:27:57,666 And Steve Jobs was pissed. 1234 00:27:57,750 --> 00:28:00,416 - The battle between 1235 00:27:57,750 --> 00:28:00,416 Apple CEO Steve Jobs 1236 00:28:00,500 --> 00:28:03,458 and Google CEO Eric Schmidt 1237 00:28:00,500 --> 00:28:03,458 getting personal. 1238 00:28:03,541 --> 00:28:07,500 - Steve Jobs simply hates 1239 00:28:03,541 --> 00:28:07,500 Eric Schmidt right now. 1240 00:28:07,583 --> 00:28:09,583 That's how bitter 1241 00:28:07,583 --> 00:28:09,583 this rivalry has gotten. 1242 00:28:09,666 --> 00:28:12,166 - Eventually, Eric Schmidt had 1243 00:28:09,666 --> 00:28:12,166 to leave the Apple board, 1244 00:28:12,250 --> 00:28:15,125 and the competition was on. 1245 00:28:15,125 --> 00:28:17,208 - If Google did not act, 1246 00:28:17,291 --> 00:28:19,875 we faced a Draconian future-- 1247 00:28:19,958 --> 00:28:23,333 a future where one man, 1248 00:28:19,958 --> 00:28:23,333 one company, 1249 00:28:23,416 --> 00:28:25,458 one device, 1250 00:28:23,416 --> 00:28:25,458 one carrier, 1251 00:28:25,541 --> 00:28:27,000 would be our only choice. 1252 00:28:27,083 --> 00:28:30,375 [cheers and applause] 1253 00:28:27,083 --> 00:28:30,375 That's a future we don't want. 1254 00:28:31,708 --> 00:28:34,708 [cheers and applause] 1255 00:28:36,375 --> 00:28:38,291 - So in 2007, 1256 00:28:38,375 --> 00:28:40,208 Kara Swisher and I 1257 00:28:38,375 --> 00:28:40,208 were lucky enough 1258 00:28:40,291 --> 00:28:42,708 to get Bill Gates and 1259 00:28:40,291 --> 00:28:42,708 Steve Jobs on stage together. 1260 00:28:42,708 --> 00:28:44,083 It was an interview. 1261 00:28:44,166 --> 00:28:46,583 - Well, you know, Bill built 1262 00:28:44,166 --> 00:28:46,583 the first software company 1263 00:28:46,666 --> 00:28:49,041 before anybody really knew 1264 00:28:46,666 --> 00:28:49,041 what a software company was. 1265 00:28:49,125 --> 00:28:50,875 - If you were gonna 1266 00:28:49,125 --> 00:28:50,875 pick two people 1267 00:28:50,958 --> 00:28:54,625 who basically started 1268 00:28:50,958 --> 00:28:54,625 the personal tech revolution, 1269 00:28:54,625 --> 00:28:56,500 they were the right 1270 00:28:54,625 --> 00:28:56,500 two people to pick. 1271 00:28:56,583 --> 00:28:58,083 - But what's the 1272 00:28:56,583 --> 00:28:58,083 greatest misunderstanding 1273 00:28:58,166 --> 00:29:00,250 in your relationship 1274 00:28:58,166 --> 00:29:00,250 about each other? 1275 00:29:00,250 --> 00:29:02,291 This idea of cat fights, 1276 00:29:00,250 --> 00:29:02,291 this idea of, what-- 1277 00:29:02,291 --> 00:29:04,125 which one of the many? 1278 00:29:04,125 --> 00:29:06,458 - We've kept our marriage 1279 00:29:04,125 --> 00:29:06,458 secret for over a decade now. 1280 00:29:06,458 --> 00:29:08,916 [laughter] 1281 00:29:08,916 --> 00:29:11,916 - These two people were 1282 00:29:08,916 --> 00:29:11,916 the most significant forces 1283 00:29:12,000 --> 00:29:14,458 in technology through our era. 1284 00:29:14,458 --> 00:29:16,750 And to see them together, 1285 00:29:14,458 --> 00:29:16,750 praising each other, 1286 00:29:16,833 --> 00:29:18,958 and jabbing each other 1287 00:29:16,833 --> 00:29:18,958 a little in the ribs... 1288 00:29:18,958 --> 00:29:21,583 - Well, I know--I know Steve's 1289 00:29:18,958 --> 00:29:21,583 gonna announce his transporter. 1290 00:29:21,666 --> 00:29:23,416 [laughter] 1291 00:29:23,500 --> 00:29:24,750 - It was really a great moment, 1292 00:29:24,833 --> 00:29:26,750 and I was lucky 1293 00:29:24,833 --> 00:29:26,750 to have seen it. 1294 00:29:26,750 --> 00:29:28,916 - You are competitors 1295 00:29:26,750 --> 00:29:28,916 in certain ways. 1296 00:29:28,916 --> 00:29:30,250 - We watched the commercials. 1297 00:29:30,250 --> 00:29:32,458 - And you get annoyed at 1298 00:29:30,250 --> 00:29:32,458 each other from time to time. 1299 00:29:32,458 --> 00:29:33,791 - But you know what? 1300 00:29:32,458 --> 00:29:33,791 I have to confess. 1301 00:29:33,875 --> 00:29:35,291 I like PC guy better. 1302 00:29:33,875 --> 00:29:35,291 - Yeah, he's great. 1303 00:29:35,375 --> 00:29:36,625 - [laughs] 1304 00:29:35,375 --> 00:29:36,625 - I like him. 1305 00:29:36,708 --> 00:29:40,041 - The art of those commercials 1306 00:29:36,708 --> 00:29:40,041 is not to be mean, 1307 00:29:40,125 --> 00:29:42,666 but it's actually for the guys 1308 00:29:40,125 --> 00:29:42,666 to like each other. 1309 00:29:42,666 --> 00:29:45,666 [laughter] 1310 00:29:46,791 --> 00:29:48,875 - There was always 1311 00:29:46,791 --> 00:29:48,875 a tension between them. 1312 00:29:48,958 --> 00:29:50,458 - PC guy's great. 1313 00:29:48,958 --> 00:29:50,458 - I liked him. 1314 00:29:50,458 --> 00:29:52,458 - He's got a big heart. 1315 00:29:52,458 --> 00:29:54,500 - His mother loves him. 1316 00:29:52,458 --> 00:29:54,500 - His mother loves him. 1317 00:29:54,583 --> 00:29:55,875 - I'm telling you. 1318 00:29:55,958 --> 00:29:58,000 - Their companies were 1319 00:29:55,958 --> 00:29:58,000 always gonna be competitors, 1320 00:29:58,083 --> 00:30:00,458 but when they got on stage, 1321 00:29:58,083 --> 00:30:00,458 they were both sweethearts. 1322 00:30:00,541 --> 00:30:03,500 - There's a--that one line 1323 00:30:00,541 --> 00:30:03,500 in that one Beatles song, 1324 00:30:03,583 --> 00:30:05,125 "You and I have memories 1325 00:30:05,125 --> 00:30:07,208 longer than the road that 1326 00:30:05,125 --> 00:30:07,208 stretches out ahead." 1327 00:30:07,291 --> 00:30:10,000 And that's clearly true here. 1328 00:30:10,083 --> 00:30:12,833 - It was a great moment 1329 00:30:10,083 --> 00:30:12,833 for the two of us and 1330 00:30:12,916 --> 00:30:14,791 for the people in the room 1331 00:30:14,791 --> 00:30:16,875 and for the people 1332 00:30:14,791 --> 00:30:16,875 who got to see it. 1333 00:30:16,875 --> 00:30:19,166 That was really the 1334 00:30:16,875 --> 00:30:19,166 beginning of the end 1335 00:30:19,250 --> 00:30:21,041 of the personal computer era. 1336 00:30:21,125 --> 00:30:24,833 - When we heard today that the 1337 00:30:21,125 --> 00:30:24,833 usually unemotional Bill Gates 1338 00:30:24,916 --> 00:30:28,416 was in tears when he said his 1339 00:30:24,916 --> 00:30:28,416 final farewell to Microsoft, 1340 00:30:28,500 --> 00:30:30,166 it wasn't surprising. 1341 00:30:30,166 --> 00:30:32,916 After all, he was present 1342 00:30:30,166 --> 00:30:32,916 at the creation. 1343 00:30:33,000 --> 00:30:34,416 [cheers and applause] 1344 00:30:34,500 --> 00:30:36,333 - I love working 1345 00:30:34,500 --> 00:30:36,333 with smart people. 1346 00:30:36,416 --> 00:30:38,333 I love working with Steve. 1347 00:30:38,416 --> 00:30:42,166 I love working with all the-- 1348 00:30:38,416 --> 00:30:42,166 the incredible people here. 1349 00:30:42,250 --> 00:30:47,208 - We've been given an enormous, 1350 00:30:42,250 --> 00:30:47,208 enormous opportunity, 1351 00:30:47,208 --> 00:30:50,000 and Bill gave us 1352 00:30:47,208 --> 00:30:50,000 that opportunity. 1353 00:30:50,083 --> 00:30:52,000 [sputtering] 1354 00:30:52,083 --> 00:30:54,000 [sniffs] 1355 00:30:52,083 --> 00:30:54,000 Dang it. 1356 00:30:54,083 --> 00:30:56,666 I wanna thank Bill for that, 1357 00:30:54,083 --> 00:30:56,666 and I want you to, too. 1358 00:30:56,750 --> 00:30:59,416 [cheers and applause] 1359 00:31:00,875 --> 00:31:04,375 - It was the lost decade 1360 00:31:00,875 --> 00:31:04,375 for Microsoft. 1361 00:31:04,458 --> 00:31:06,750 They just lost 1362 00:31:04,458 --> 00:31:06,750 a lot of their clout. 1363 00:31:06,750 --> 00:31:08,541 They still were a big, 1364 00:31:06,750 --> 00:31:08,541 important company, 1365 00:31:08,625 --> 00:31:11,541 but some of these other 1366 00:31:08,625 --> 00:31:11,541 companies like Facebook 1367 00:31:11,541 --> 00:31:13,708 or Google or maybe Amazon 1368 00:31:13,791 --> 00:31:15,750 just accelerated colossally. 1369 00:31:15,833 --> 00:31:18,875 - It is quarterly earning 1370 00:31:15,833 --> 00:31:18,875 season in corporate America. 1371 00:31:18,958 --> 00:31:20,750 Today, Amazon.com, 1372 00:31:20,833 --> 00:31:23,875 the online bookseller, 1373 00:31:20,833 --> 00:31:23,875 reported that its earnings 1374 00:31:23,875 --> 00:31:26,291 more than doubled 1375 00:31:23,875 --> 00:31:26,291 in the last three months. 1376 00:31:26,375 --> 00:31:27,625 [bright music] 1377 00:31:27,708 --> 00:31:29,958 - The economy seems to be 1378 00:31:27,708 --> 00:31:29,958 crashing all around us. 1379 00:31:30,041 --> 00:31:32,791 What can the people who are now 1380 00:31:30,041 --> 00:31:32,791 trying to fix what's broken 1381 00:31:32,875 --> 00:31:35,083 learn from your experience 1382 00:31:32,875 --> 00:31:35,083 at Amazon? 1383 00:31:35,166 --> 00:31:38,166 - I would say, 1384 00:31:35,166 --> 00:31:38,166 think long-term. 1385 00:31:38,250 --> 00:31:39,916 - I think the reason that 1386 00:31:38,250 --> 00:31:39,916 these companies 1387 00:31:39,916 --> 00:31:42,750 like Amazon, Apple, 1388 00:31:39,916 --> 00:31:42,750 and Google survived 1389 00:31:42,750 --> 00:31:44,166 was because 1390 00:31:42,750 --> 00:31:44,166 they unlocked this 1391 00:31:44,250 --> 00:31:46,416 whole new engine 1392 00:31:44,250 --> 00:31:46,416 of innovation. 1393 00:31:46,500 --> 00:31:48,791 - One of the big, 1394 00:31:46,500 --> 00:31:48,791 motivating factors for us is, 1395 00:31:48,791 --> 00:31:51,625 is just creating something 1396 00:31:48,791 --> 00:31:51,625 that we all want ourselves. 1397 00:31:51,708 --> 00:31:54,666 - Technology and 1398 00:31:51,708 --> 00:31:54,666 technology companies 1399 00:31:54,750 --> 00:31:58,458 became the preeminent force 1400 00:31:54,750 --> 00:31:58,458 in the business world. 1401 00:31:58,541 --> 00:32:00,333 Something that had 1402 00:31:58,541 --> 00:32:00,333 started small, you know, 1403 00:32:00,416 --> 00:32:02,625 really started to 1404 00:32:00,416 --> 00:32:02,625 fulfill its destiny 1405 00:32:02,625 --> 00:32:04,583 as a major disruptive change 1406 00:32:04,666 --> 00:32:06,333 across many 1407 00:32:04,666 --> 00:32:06,333 different industries. 1408 00:32:06,416 --> 00:32:08,500 - Now with more than 1409 00:32:06,416 --> 00:32:08,500 a billion searches 1410 00:32:08,583 --> 00:32:09,958 performed every day, 1411 00:32:09,958 --> 00:32:12,125 plus Google Images, 1412 00:32:09,958 --> 00:32:12,125 Google Maps, 1413 00:32:12,125 --> 00:32:14,500 Google Books, 1414 00:32:12,125 --> 00:32:14,500 Google Finance, 1415 00:32:14,583 --> 00:32:16,500 Gmail, and YouTube, 1416 00:32:16,583 --> 00:32:19,083 the company's share 1417 00:32:16,583 --> 00:32:19,083 of the market is huge. 1418 00:32:19,083 --> 00:32:21,041 - When Google bought YouTube, 1419 00:32:19,083 --> 00:32:21,041 it was a big deal, 1420 00:32:21,125 --> 00:32:22,375 especially for 1421 00:32:21,125 --> 00:32:22,375 a lot of YouTubers, 1422 00:32:22,458 --> 00:32:24,958 because up until this point, 1423 00:32:25,041 --> 00:32:26,458 you were just 1424 00:32:25,041 --> 00:32:26,458 making stuff for fun. 1425 00:32:26,458 --> 00:32:28,791 There was no option 1426 00:32:26,458 --> 00:32:28,791 or even in our heads, 1427 00:32:28,875 --> 00:32:31,541 like, a possibility 1428 00:32:28,875 --> 00:32:31,541 to make money from it. 1429 00:32:31,625 --> 00:32:32,875 - It's no secret that 1430 00:32:32,958 --> 00:32:35,166 Americans love to watch 1431 00:32:32,958 --> 00:32:35,166 videos on the Internet. 1432 00:32:35,250 --> 00:32:37,791 But who knew you could 1433 00:32:35,250 --> 00:32:37,791 get rich making them? 1434 00:32:37,791 --> 00:32:40,166 - With Google's power 1435 00:32:37,791 --> 00:32:40,166 behind it, 1436 00:32:40,166 --> 00:32:43,458 YouTube was able to grow in 1437 00:32:40,166 --> 00:32:43,458 a way the startup never could. 1438 00:32:43,458 --> 00:32:45,458 - YouTube is now 1439 00:32:43,458 --> 00:32:45,458 so influential, 1440 00:32:45,458 --> 00:32:46,791 it co-hosted last night's 1441 00:32:46,875 --> 00:32:48,666 Democratic 1442 00:32:46,875 --> 00:32:48,666 presidential debate. 1443 00:32:48,750 --> 00:32:50,958 The questions came 1444 00:32:48,750 --> 00:32:50,958 from users of the site. 1445 00:32:50,958 --> 00:32:52,291 - If you were elected 1446 00:32:52,291 --> 00:32:54,125 president of 1447 00:32:52,291 --> 00:32:54,125 the United States, 1448 00:32:54,125 --> 00:32:56,791 would you allow us 1449 00:32:54,125 --> 00:32:56,791 to be married? 1450 00:32:56,875 --> 00:32:59,500 - I don't think that 1451 00:32:56,875 --> 00:32:59,500 any of us could have possibly 1452 00:32:59,500 --> 00:33:03,416 predicted the role that 1453 00:32:59,500 --> 00:33:03,416 social networks would play 1454 00:33:03,500 --> 00:33:05,500 in the US 1455 00:33:03,500 --> 00:33:05,500 presidential elections. 1456 00:33:05,583 --> 00:33:07,708 - Candidates are gaining 1457 00:33:05,583 --> 00:33:07,708 political supporters 1458 00:33:07,791 --> 00:33:10,041 the way social networkers 1459 00:33:07,791 --> 00:33:10,041 find friends. 1460 00:33:10,125 --> 00:33:12,333 The potential voting audience 1461 00:33:10,125 --> 00:33:12,333 is immense. 1462 00:33:12,416 --> 00:33:14,166 Myspace.com sees up to 1463 00:33:14,250 --> 00:33:17,000 56 million 1464 00:33:14,250 --> 00:33:17,000 unique visitors a month, 1465 00:33:17,083 --> 00:33:19,500 and about 80% are voting age. 1466 00:33:19,583 --> 00:33:20,833 - While both campaigns hope 1467 00:33:20,916 --> 00:33:22,833 their supporters 1468 00:33:20,916 --> 00:33:22,833 spread the word, 1469 00:33:22,833 --> 00:33:26,708 Obama is friended almost 1470 00:33:22,833 --> 00:33:26,708 seven times more than McCain. 1471 00:33:26,791 --> 00:33:29,833 - The Obama campaign 1472 00:33:26,791 --> 00:33:29,833 happened around a time 1473 00:33:29,833 --> 00:33:33,250 when social media was 1474 00:33:29,833 --> 00:33:33,250 experiencing a coming of age. 1475 00:33:33,333 --> 00:33:34,583 [cheers and applause] 1476 00:33:34,666 --> 00:33:36,708 - Barack Obama created 1477 00:33:34,666 --> 00:33:36,708 a movement behind him. 1478 00:33:36,791 --> 00:33:38,041 He doesn't-- 1479 00:33:36,791 --> 00:33:38,041 it wasn't already-- 1480 00:33:38,125 --> 00:33:39,750 he's the first candidate 1481 00:33:38,125 --> 00:33:39,750 we've ever seen 1482 00:33:39,833 --> 00:33:41,500 who had an organization 1483 00:33:39,833 --> 00:33:41,500 that brought together 1484 00:33:41,500 --> 00:33:44,041 the Internet and 1485 00:33:41,500 --> 00:33:44,041 community organizing. 1486 00:33:44,041 --> 00:33:47,375 - Obama had the Internet. 1487 00:33:44,041 --> 00:33:47,375 He had Myspace and Facebook. 1488 00:33:47,458 --> 00:33:49,041 It certainly changed the way 1489 00:33:49,125 --> 00:33:51,083 that candidates 1490 00:33:49,125 --> 00:33:51,083 communicated with their base. 1491 00:33:51,083 --> 00:33:52,416 It changed the way 1492 00:33:51,083 --> 00:33:52,416 that we thought about 1493 00:33:52,416 --> 00:33:55,541 how we could communicate 1494 00:33:52,416 --> 00:33:55,541 and influence candidates. 1495 00:33:55,541 --> 00:33:57,625 - One of the 1496 00:33:55,541 --> 00:33:57,625 most enduring images 1497 00:33:57,708 --> 00:34:01,291 of campaign '08 is 1498 00:33:57,708 --> 00:34:01,291 this one of Barack Obama. 1499 00:34:01,375 --> 00:34:02,958 - That Barack Obama image-- 1500 00:34:03,041 --> 00:34:06,125 it's here, there, 1501 00:34:03,041 --> 00:34:06,125 everywhere it seems this year. 1502 00:34:06,208 --> 00:34:07,916 - When I met Obama, 1503 00:34:06,208 --> 00:34:07,916 he said, 1504 00:34:07,916 --> 00:34:09,250 "I love this image. 1505 00:34:09,250 --> 00:34:11,708 And how did you get it 1506 00:34:09,250 --> 00:34:11,708 spread around so fast?" 1507 00:34:11,708 --> 00:34:14,916 Seeing the hope poster 1508 00:34:11,708 --> 00:34:14,916 as a digital phenomenon 1509 00:34:14,916 --> 00:34:16,583 was pretty amazing. 1510 00:34:16,583 --> 00:34:19,916 It really made me realize 1511 00:34:16,583 --> 00:34:19,916 the power of social media 1512 00:34:20,000 --> 00:34:22,125 to democratize 1513 00:34:20,000 --> 00:34:22,125 and proliferate. 1514 00:34:22,208 --> 00:34:23,458 - We're trying to translate 1515 00:34:23,541 --> 00:34:26,250 all of that online 1516 00:34:23,541 --> 00:34:26,250 enthusiasm and energy 1517 00:34:26,250 --> 00:34:28,458 to a successful November 4th. 1518 00:34:28,458 --> 00:34:30,333 - In three simple words... 1519 00:34:30,416 --> 00:34:32,625 all: Yes We Can. 1520 00:34:32,625 --> 00:34:35,666 - Thank you, South Carolina. 1521 00:34:32,625 --> 00:34:35,666 I love you. 1522 00:34:35,750 --> 00:34:37,416 - If not for social media, 1523 00:34:37,500 --> 00:34:40,000 Barack Obama would never 1524 00:34:37,500 --> 00:34:40,000 have been elected president. 1525 00:34:40,083 --> 00:34:41,791 It gave us the ability 1526 00:34:41,875 --> 00:34:44,750 to connect to a 1527 00:34:41,875 --> 00:34:44,750 new generation of voters. 1528 00:34:44,750 --> 00:34:49,083 - Barack Obama will be the 44th 1529 00:34:44,750 --> 00:34:49,083 president of the United States. 1530 00:34:49,083 --> 00:34:52,125 [cheers and applause] 1531 00:34:54,166 --> 00:34:56,958 - On election night, 1532 00:34:54,166 --> 00:34:56,958 I went to this party, 1533 00:34:57,041 --> 00:34:59,166 and all of Silicon Valley 1534 00:34:57,041 --> 00:34:59,166 was there, 1535 00:34:59,250 --> 00:35:02,000 and everybody was cheering, 1536 00:34:59,250 --> 00:35:02,000 and screaming, and singing. 1537 00:35:02,083 --> 00:35:04,958 And it felt like 1538 00:35:02,083 --> 00:35:04,958 an Internet victory. 1539 00:35:04,958 --> 00:35:08,000 It just felt like our world 1540 00:35:08,000 --> 00:35:10,125 was finally being recognized 1541 00:35:10,208 --> 00:35:14,000 as something that could 1542 00:35:10,208 --> 00:35:14,000 change the rest of the world. 1543 00:35:14,000 --> 00:35:15,333 And it did. 1544 00:35:16,250 --> 00:35:18,625 - I wouldn't know 1545 00:35:16,250 --> 00:35:18,625 a Twitter from a tweeter, 1546 00:35:18,625 --> 00:35:22,416 but apparently, 1547 00:35:18,625 --> 00:35:22,416 it is very important. 1548 00:35:22,500 --> 00:35:23,750 - I don't know what that is. 1549 00:35:23,833 --> 00:35:25,458 Uh, a Twitter? 1550 00:35:23,833 --> 00:35:25,458 What does that mean? 1551 00:35:25,541 --> 00:35:27,291 - Tell me exactly 1552 00:35:25,541 --> 00:35:27,291 what is a Twitter? 1553 00:35:27,375 --> 00:35:30,458 - By the end of the decade, 1554 00:35:27,375 --> 00:35:30,458 there were a lot of companies 1555 00:35:30,458 --> 00:35:33,083 trying to be the next 1556 00:35:30,458 --> 00:35:33,083 big social network. 1557 00:35:33,083 --> 00:35:35,250 - Twitter is an 1558 00:35:33,083 --> 00:35:35,250 instant messaging system that 1559 00:35:35,250 --> 00:35:39,000 allows users to text thousands 1560 00:35:35,250 --> 00:35:39,000 of other users at once. 1561 00:35:39,083 --> 00:35:41,333 Messages, nicknamed "tweets," 1562 00:35:39,083 --> 00:35:41,333 always begin 1563 00:35:41,416 --> 00:35:44,250 by answering the question, 1564 00:35:41,416 --> 00:35:44,250 "What are you doing?" 1565 00:35:44,250 --> 00:35:45,791 - When I first joined Twitter, 1566 00:35:45,791 --> 00:35:48,958 it really was people talking 1567 00:35:45,791 --> 00:35:48,958 about what they ate for lunch. 1568 00:35:49,041 --> 00:35:50,958 I was on it for, like, 1569 00:35:49,041 --> 00:35:50,958 three days, and I thought, 1570 00:35:50,958 --> 00:35:53,833 I don't need to hear about 1571 00:35:50,958 --> 00:35:53,833 my friend's sandwiches. 1572 00:35:53,916 --> 00:35:55,625 - Do I really need to know 1573 00:35:53,916 --> 00:35:55,625 that Joe in Seattle 1574 00:35:55,625 --> 00:35:57,541 is having oatmeal 1575 00:35:55,625 --> 00:35:57,541 for breakfast this morning? 1576 00:35:57,625 --> 00:35:59,375 Is there such a thing as 1577 00:35:57,625 --> 00:35:59,375 too much information? 1578 00:35:59,458 --> 00:36:00,791 - Why are you a tweeter? 1579 00:36:00,791 --> 00:36:02,291 - For me, it's been helpful 1580 00:36:02,375 --> 00:36:04,291 to really kinda 1581 00:36:02,375 --> 00:36:04,291 cut out the middleman, 1582 00:36:04,375 --> 00:36:06,458 and the middleman 1583 00:36:04,375 --> 00:36:06,458 has been the media. 1584 00:36:06,541 --> 00:36:08,166 It's given me a chance 1585 00:36:06,541 --> 00:36:08,166 for people to really 1586 00:36:08,250 --> 00:36:09,666 get to know the real me. 1587 00:36:09,750 --> 00:36:11,666 - The conciseness enforced 1588 00:36:11,750 --> 00:36:14,625 by that 140 character limit 1589 00:36:11,750 --> 00:36:14,625 was really attractive. 1590 00:36:14,708 --> 00:36:16,458 Didn't have to read and scroll. 1591 00:36:16,541 --> 00:36:18,708 - In the past year, 1592 00:36:16,541 --> 00:36:18,708 the number of Twitter users 1593 00:36:18,791 --> 00:36:21,458 grew 343%, 1594 00:36:21,541 --> 00:36:24,458 with nearly 2 1/2 million 1595 00:36:21,541 --> 00:36:24,458 people on the site now. 1596 00:36:24,541 --> 00:36:25,791 And I'm--I'm one of them. 1597 00:36:25,875 --> 00:36:27,541 - Twitter became, 1598 00:36:25,875 --> 00:36:27,541 for many of us, 1599 00:36:27,625 --> 00:36:29,291 a dominant platform 1600 00:36:27,625 --> 00:36:29,291 for communication 1601 00:36:29,375 --> 00:36:30,875 day in and day out. 1602 00:36:30,875 --> 00:36:33,083 That's part of the magic 1603 00:36:30,875 --> 00:36:33,083 of working on the Internet. 1604 00:36:33,166 --> 00:36:36,583 You just really never know how 1605 00:36:33,166 --> 00:36:36,583 this stuff's gonna play out. 1606 00:36:36,666 --> 00:36:38,333 - Big news in 1607 00:36:36,666 --> 00:36:38,333 the computer world. 1608 00:36:38,416 --> 00:36:40,166 Steve Jobs, 1609 00:36:38,416 --> 00:36:40,166 who turned Apple from 1610 00:36:40,250 --> 00:36:43,875 a boutique computer company 1611 00:36:40,250 --> 00:36:43,875 into a technology behemoth, 1612 00:36:43,875 --> 00:36:45,333 announced today 1613 00:36:43,875 --> 00:36:45,333 that he's taking 1614 00:36:45,333 --> 00:36:47,250 a leave of absence until June. 1615 00:36:47,333 --> 00:36:49,875 Job says his decision is 1616 00:36:47,333 --> 00:36:49,875 due to health issues, 1617 00:36:49,875 --> 00:36:53,333 which he says are more complex 1618 00:36:49,875 --> 00:36:53,333 than he originally thought. 1619 00:36:53,416 --> 00:36:56,708 - Steve was always a lot sicker 1620 00:36:53,416 --> 00:36:56,708 towards the end of his life 1621 00:36:56,708 --> 00:36:59,375 then he wanted to acknowledge. 1622 00:36:59,375 --> 00:37:02,166 - It's frankly been a battle 1623 00:36:59,375 --> 00:37:02,166 with investors where he said, 1624 00:37:02,166 --> 00:37:04,541 "It's none of your business. 1625 00:37:02,166 --> 00:37:04,541 I'm doing fine." 1626 00:37:04,541 --> 00:37:07,041 Then when he does give updates, 1627 00:37:04,541 --> 00:37:07,041 even ten days ago, 1628 00:37:07,041 --> 00:37:08,541 he said he's gonna be 1629 00:37:07,041 --> 00:37:08,541 staying on at the company 1630 00:37:08,625 --> 00:37:10,333 for the foreseeable future. 1631 00:37:10,416 --> 00:37:11,875 Ten days later, 1632 00:37:10,416 --> 00:37:11,875 that completely changed. 1633 00:37:11,875 --> 00:37:13,916 So that's the real concern 1634 00:37:11,875 --> 00:37:13,916 on Wall Street. 1635 00:37:13,916 --> 00:37:18,208 - There was a national 1636 00:37:13,916 --> 00:37:18,208 economic importance 1637 00:37:18,208 --> 00:37:19,791 tied to the health 1638 00:37:18,208 --> 00:37:19,791 of Steve Jobs. 1639 00:37:19,875 --> 00:37:21,416 And at that point, 1640 00:37:21,416 --> 00:37:23,875 stockholders were beginning 1641 00:37:21,416 --> 00:37:23,875 to ask what was going on. 1642 00:37:23,875 --> 00:37:25,750 - In the city of 1643 00:37:23,875 --> 00:37:25,750 San Francisco today, 1644 00:37:25,750 --> 00:37:29,041 Apple CEO Steve Jobs 1645 00:37:25,750 --> 00:37:29,041 returned to the spotlight. 1646 00:37:29,041 --> 00:37:30,750 He appeared on stage 1647 00:37:29,041 --> 00:37:30,750 at a company event 1648 00:37:30,833 --> 00:37:32,791 after a six-month 1649 00:37:30,833 --> 00:37:32,791 medical leave. 1650 00:37:32,875 --> 00:37:34,416 - When he came back to work, 1651 00:37:34,416 --> 00:37:36,458 his voice wasn't 1652 00:37:34,416 --> 00:37:36,458 weak or anything. 1653 00:37:36,541 --> 00:37:38,750 I mean, he was 1654 00:37:36,541 --> 00:37:38,750 drinking more water, 1655 00:37:38,833 --> 00:37:41,083 but essentially, 1656 00:37:38,833 --> 00:37:41,083 it was just as it was 1657 00:37:41,166 --> 00:37:43,208 when he looked 1658 00:37:41,166 --> 00:37:43,208 physically normal. 1659 00:37:43,208 --> 00:37:46,250 [cheers and applause] 1660 00:37:47,541 --> 00:37:49,958 - He has wow-ed the world 1661 00:37:47,541 --> 00:37:49,958 time and again 1662 00:37:50,041 --> 00:37:52,583 with his bold inventions 1663 00:37:50,041 --> 00:37:52,583 and this week, 1664 00:37:52,583 --> 00:37:54,250 he did it again. 1665 00:37:54,333 --> 00:37:55,666 - The iPad. 1666 00:37:55,750 --> 00:37:58,333 [cheers and applause] 1667 00:37:58,416 --> 00:37:59,791 - To be at the 1668 00:37:58,416 --> 00:37:59,791 front of the line 1669 00:37:59,875 --> 00:38:01,583 at the San Francisco 1670 00:37:59,875 --> 00:38:01,583 Apple store, 1671 00:38:01,666 --> 00:38:04,583 you had to camp out 1672 00:38:01,666 --> 00:38:04,583 starting at 10:30 last night. 1673 00:38:04,666 --> 00:38:05,916 [crowd shouting excitedly] 1674 00:38:06,000 --> 00:38:09,791 And that's just what 1675 00:38:06,000 --> 00:38:09,791 Max Ackerman did. 1676 00:38:09,791 --> 00:38:12,416 - The iPad. 1677 00:38:09,791 --> 00:38:12,416 And I was first. 1678 00:38:12,416 --> 00:38:14,458 - I'm really impressed by it. 1679 00:38:14,458 --> 00:38:16,291 I haven't let it 1680 00:38:14,458 --> 00:38:16,291 out of my hands... 1681 00:38:16,291 --> 00:38:18,291 [laughing] So--pretty much 1682 00:38:16,291 --> 00:38:18,291 for the entire time. 1683 00:38:18,375 --> 00:38:21,416 The iPad wasn't 1684 00:38:18,375 --> 00:38:21,416 the first tablet, 1685 00:38:21,500 --> 00:38:24,125 but it was the best. 1686 00:38:24,125 --> 00:38:26,083 - Steve Jobs turned 1687 00:38:24,125 --> 00:38:26,083 a dying company 1688 00:38:26,166 --> 00:38:28,583 into possibly 1689 00:38:28,583 --> 00:38:31,250 the greatest company 1690 00:38:28,583 --> 00:38:31,250 America's ever seen. 1691 00:38:31,333 --> 00:38:33,666 - Where do you fit 1692 00:38:31,333 --> 00:38:33,666 in the American family 1693 00:38:33,750 --> 00:38:35,375 of thinkers and inventors? 1694 00:38:35,458 --> 00:38:36,833 - You know, 1695 00:38:36,916 --> 00:38:39,125 I don't--I don't 1696 00:38:36,916 --> 00:38:39,125 really think that way. 1697 00:38:39,208 --> 00:38:41,291 - Steve Jobs 1698 00:38:39,208 --> 00:38:41,291 is kind of like the 1699 00:38:41,375 --> 00:38:44,500 Thomas Edison crossed 1700 00:38:41,375 --> 00:38:44,500 with Pablo Picasso, 1701 00:38:44,500 --> 00:38:46,958 with a touch of P.T. Barnum 1702 00:38:44,500 --> 00:38:46,958 of American history. 1703 00:38:46,958 --> 00:38:49,500 He has the style. 1704 00:38:46,958 --> 00:38:49,500 He has the flair. 1705 00:38:49,500 --> 00:38:51,291 He has the genius. 1706 00:38:49,500 --> 00:38:51,291 He has the creativity. 1707 00:38:51,291 --> 00:38:53,333 He has the technology. 1708 00:38:51,291 --> 00:38:53,333 He has the vision. 1709 00:38:53,416 --> 00:38:57,166 - A few weeks ago, 1710 00:38:53,416 --> 00:38:57,166 we sold our 1711 00:38:57,166 --> 00:39:00,125 250 millionth iPod. 1712 00:39:00,208 --> 00:39:01,625 [cheers and applause] 1713 00:39:01,708 --> 00:39:03,625 - If you have a couple 1714 00:39:01,708 --> 00:39:03,625 of the machines that 1715 00:39:03,625 --> 00:39:05,333 Steve Jobs created, 1716 00:39:05,333 --> 00:39:07,875 you have access to absolutely 1717 00:39:05,333 --> 00:39:07,875 everything in the world. 1718 00:39:07,958 --> 00:39:10,291 That--that takes a brand of-- 1719 00:39:10,375 --> 00:39:12,791 of visionary who was 1720 00:39:10,375 --> 00:39:12,791 always asking, "Why not?" 1721 00:39:12,875 --> 00:39:15,833 - Somebody once called me 1722 00:39:12,875 --> 00:39:15,833 the iCEO about a year ago, 1723 00:39:15,916 --> 00:39:18,416 and I liked that, so I'm gonna 1724 00:39:15,916 --> 00:39:18,416 choose that as my title, 1725 00:39:18,500 --> 00:39:19,875 if it's okay with you... 1726 00:39:18,500 --> 00:39:19,875 [laughter] 1727 00:39:19,958 --> 00:39:22,833 To remind myself of 1728 00:39:19,958 --> 00:39:22,833 what's really important, 1729 00:39:22,833 --> 00:39:25,750 which is, of course, 1730 00:39:22,833 --> 00:39:25,750 the Internet. 1731 00:39:25,833 --> 00:39:28,916 - When the Internet first 1732 00:39:25,833 --> 00:39:28,916 became available to the public, 1733 00:39:29,000 --> 00:39:31,875 I think a lot of people 1734 00:39:29,000 --> 00:39:31,875 could easily see that 1735 00:39:31,958 --> 00:39:35,041 the possibilities were so vast 1736 00:39:35,041 --> 00:39:37,250 that your brain just 1737 00:39:35,041 --> 00:39:37,250 went into sparks. 1738 00:39:37,333 --> 00:39:40,166 - I think Facebook is actually 1739 00:39:37,333 --> 00:39:40,166 more valuable as you get older. 1740 00:39:40,250 --> 00:39:41,875 You've interacted 1741 00:39:40,250 --> 00:39:41,875 with more people. 1742 00:39:41,958 --> 00:39:43,541 Maybe you've lived 1743 00:39:41,958 --> 00:39:43,541 in more places. 1744 00:39:43,541 --> 00:39:45,500 - We all grew up in 1745 00:39:43,541 --> 00:39:45,500 the same neighborhood, 1746 00:39:45,500 --> 00:39:48,250 and we found each other 1747 00:39:45,500 --> 00:39:48,250 again on Facebook. 1748 00:39:48,333 --> 00:39:50,041 It makes me feel connected. 1749 00:39:50,125 --> 00:39:52,208 I go on that site, 1750 00:39:50,125 --> 00:39:52,208 and I'm home. 1751 00:39:52,208 --> 00:39:54,875 - The technology existed. 1752 00:39:54,875 --> 00:39:57,666 What we needed were 1753 00:39:54,875 --> 00:39:57,666 visionaries who understood 1754 00:39:57,666 --> 00:40:01,208 how technology could be 1755 00:39:57,666 --> 00:40:01,208 put to use for the consumer. 1756 00:40:01,208 --> 00:40:02,541 - What is the 1757 00:40:01,208 --> 00:40:02,541 one-sentence summary 1758 00:40:02,541 --> 00:40:04,250 of how you change the world? 1759 00:40:04,250 --> 00:40:08,208 "Always work hard on something 1760 00:40:04,250 --> 00:40:08,208 uncomfortably exciting." 1761 00:40:08,291 --> 00:40:10,083 - The people who 1762 00:40:08,291 --> 00:40:10,083 could connect, 1763 00:40:10,083 --> 00:40:12,041 the can-do of technology, 1764 00:40:12,041 --> 00:40:15,750 and the want of consumers-- 1765 00:40:12,041 --> 00:40:15,750 they were the people 1766 00:40:15,750 --> 00:40:17,875 that we would be talking about 1767 00:40:15,750 --> 00:40:17,875 for years afterwards. 1768 00:40:17,958 --> 00:40:19,583 - Yeah, you can floor it. 1769 00:40:17,958 --> 00:40:19,583 No problem. 1770 00:40:19,666 --> 00:40:21,250 If you would have 1771 00:40:19,666 --> 00:40:21,250 asked someone, 1772 00:40:21,250 --> 00:40:22,750 "What's the greatest center 1773 00:40:21,250 --> 00:40:22,750 of innovation in the world?" 1774 00:40:22,750 --> 00:40:24,083 "Silicon Valley" is the answer. 1775 00:40:24,083 --> 00:40:25,750 And then you say, 1776 00:40:24,083 --> 00:40:25,750 "What's the second?" 1777 00:40:25,750 --> 00:40:27,625 - And people would be mute. 1778 00:40:25,750 --> 00:40:27,625 - [laughs] 1779 00:40:27,708 --> 00:40:29,208 I don't know...[laughs] 1780 00:40:27,708 --> 00:40:29,208 - Yeah. 1781 00:40:29,291 --> 00:40:33,375 - During the 2000s, there was 1782 00:40:29,291 --> 00:40:33,375 a explosion of ideas. 1783 00:40:33,458 --> 00:40:36,458 - This is the new iPod Nano. 1784 00:40:36,541 --> 00:40:38,416 - We had an acceleration 1785 00:40:36,541 --> 00:40:38,416 of evolution... 1786 00:40:38,416 --> 00:40:41,291 [laughter] 1787 00:40:41,375 --> 00:40:43,250 That just got going 1788 00:40:41,375 --> 00:40:43,250 faster and faster 1789 00:40:43,333 --> 00:40:44,916 and faster and faster 1790 00:40:43,333 --> 00:40:44,916 and faster, 1791 00:40:44,916 --> 00:40:48,458 and in a course of a decade, 1792 00:40:44,916 --> 00:40:48,458 the world was changed forever. 1793 00:40:48,458 --> 00:40:50,750 - I assumed you had nothing. 1794 00:40:50,833 --> 00:40:54,625 You were just people 1795 00:40:50,833 --> 00:40:54,625 sitting by a phone... 1796 00:40:54,625 --> 00:40:55,916 - Yeah. 1797 00:40:54,625 --> 00:40:55,916 - Or a computer. 1798 00:40:56,000 --> 00:40:57,291 And people would be like, 1799 00:40:56,000 --> 00:40:57,291 "I want a bicycle." 1800 00:40:57,375 --> 00:40:58,750 And then it would come 1801 00:40:57,375 --> 00:40:58,750 to Amazon and you'd be like, 1802 00:40:58,833 --> 00:41:01,291 "We need to go find a bicycle," 1803 00:40:58,833 --> 00:41:01,291 and then you'd run out, 1804 00:41:01,375 --> 00:41:03,833 and you'd get a bicycle, 1805 00:41:01,375 --> 00:41:03,833 and you'd write "Amazon" on it, 1806 00:41:03,916 --> 00:41:05,750 and then you would send it 1807 00:41:03,916 --> 00:41:05,750 to people's houses. 1808 00:41:05,750 --> 00:41:07,791 I didn't know you 1809 00:41:05,750 --> 00:41:07,791 actually made things. 1810 00:41:07,791 --> 00:41:09,583 - Well, we started working 1811 00:41:07,791 --> 00:41:09,583 on this four years ago, 1812 00:41:09,666 --> 00:41:11,666 but mostly we do pretty much 1813 00:41:09,666 --> 00:41:11,666 what you described. 1814 00:41:11,750 --> 00:41:13,625 - Thank you. 1815 00:41:11,750 --> 00:41:13,625 [laughter] 1816 00:41:13,708 --> 00:41:15,416 Let me ask you this-- 1817 00:41:13,708 --> 00:41:15,416 why is it, 1818 00:41:15,500 --> 00:41:17,583 if I want it delivered 1819 00:41:15,500 --> 00:41:17,583 in three days, it's $1.50, 1820 00:41:17,583 --> 00:41:20,750 but if I want it delivered 1821 00:41:17,583 --> 00:41:20,750 in two days, it's $85. 1822 00:41:20,833 --> 00:41:22,708 - [laughs] 1823 00:41:20,833 --> 00:41:22,708 - Why is that? 1824 00:41:22,791 --> 00:41:24,666 What's going on with that? 1825 00:41:24,666 --> 00:41:27,875 [dramatic music] 111826

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