The Inaugural Show
Wednesday, July 25th, 2007 running time 28:50
It's the very first episode of The GigaOM Show! Our esteemed hosts Om Malik and Joyce Kim get the party started off right with this week's top Hitlines ('cause you know it's all about the traffic with the GigaOM crowd). They also get cozy with HOTorNOT.com's James Hong to find out how his company's keeping up with the Facebooks of the Web 2.0 scene. Plus, what's on Seagate CEO Bill Watkins' hard drive? The answer may surprise you! Om and Joyce get his expert take on Seagate's success. All that, plus a whole lotta business savvy, this week and every week, on The GigaOM Show!
Watch the trailer that started the buzz!!
Highlights
high tech
(
16:32, 16:32
)
hard drive
(
15:03, 21:25, 23:02, 23:59, 25:06, 15:03, 21:25, 23:02, 23:59, 25:06
)
Britney Spears
(
9:54, 9:54
)
Wall Street
(
16:49, 17:25, 17:32, 16:49, 17:25, 17:32
)
high tech
(
16:32, 16:32
)
hard drive
(
15:03, 21:25, 23:02, 23:59, 25:06, 15:03, 21:25, 23:02, 23:59, 25:06
)
Britney Spears
(
9:54, 9:54
)
Wall Street
(
16:49, 17:25, 17:32, 16:49, 17:25, 17:32
)
Automatically Generated Transcript(may not be 100% accurate) ( more )
" The get go home show you sponsored by jangled. Hello and welcome to the inaugural episode of the -- don't show I'm the -- indigo. And Joyce Kim and each week we're -- bringing the latest in tech news and happenings what's hot what's not power brokers newcomers. Everything that from all around the work. But before we get to that. This week's pick lions -- lines because that's how we --"
" So today's number five hit line is Netflix stumbles. Right so they reduced their there subscription price on two of their packages by a dollar. And the market went crazy so apparently they're having some tough."
" I'm a blockbuster and other companies are duking it out each and refused to make money for some -- reason. I mean I haven't been to blockbuster forever -- I used -- makes this week. Lindsay you know I'm videos -- margins you've them. I believe she's in jail again if she isn't again but you know it it's going to be fun I think it's a good thing for the consumer don't you think."
" And he's finishing I think so sad that you have a big company like blockbuster that actually makes no money able to beat up look pretty profitable company like Netflix. Over something like this but they do offer a little more convenience that you can go -- not just a male thinking going you can put. Swap it out he can go home with another one."
" Rule and you know for me it's a CD it's a dvd -- that on -- I don't care and if they they get into a price far be so beard because I'll have to pay less to watch Lindsay. And you and number two story we have this week is iPhone iPhone had apparently had a pretty rough. We can't -- so opening weekend laws and like. Like 700000. Activation of fire under -- and activation thing -- 146 pounds."
" Right and partially because of his way too much -- right way to much buzz about how many before there and of and all the people staying online so the sales income up -- eighteenth -- Amber's only reflect. The eighteen technicians up to June 30 so we'll have to see how that plays at work."
" 82 activation is amendment right right and not having everybody that's not so as Kevin. I mark my number July 8."
" Yet but I do think that this is the first you know sign that the Golden -- on the iPhone start to diminish -- security -- stories going right now which. You with the learn all of them more about ends we have this issue here that maybe this they're not flying off the shelves -- people expected them with left the show you for."
" They hate it may be a black and you that it seems that."
" I am a black razor and I don't have any problems at that again on my you know my attachments as move on. So the next -- that we have is the big question their -- us now is FaceBook worth ten billion dollars."
" To somebody because it's all of our perception right you know that's images everything it's very much like that do. A lot of noise and armed FaceBook everybody's breathing applications remark around and you know the people are calling a dissolution -- asked this and that. I guess somebody's -- car to check 10000015 million who knows it's a lark a sucker is willing to pay for something. It's always been very marcher and interactive and beautiful and -- you have to find the beautiful."
" And of course that adds that this the Packers have to do set of the Edison a very high precedent and very high expectations so that they don't get any low ball offers like -- Chevy one billion dollar off I know Iraq you know markets smart he -- not to drive prices up for the fascists so. Advertising is one way that -- will be looking to make money right prove that ten million dollar valuation write part of --"
" I think this week's number two story is AOL did geniuses are buying a coda for 275. Million dollars. This whole Arab madness on advertising has started mostly because. Lou Lou Bart DoubleClick today which is still Barack all right and FTC is investigating that and -- there is just -- This is some consolidation every crappy company can --"
" Not Arab brother so lot of them out there and some of them are more crappy than others but -- trying to distinguish themselves differentiate themselves from the field by doing a whole behavioral targeting. I'm -- more about consumer feed them what they need rain I know the you work with Dakota bit."
" Yes and I was serving Jenny Craig act on my site which is is -- technology. -- tell you that that it doesn't work. The iPhone departed works really rather -- would be led that thing home lose some great -- we can correct frank Rich's name wrong kind of poverty."
" But it does show that -- still only acquisition game and other still trying to compete with the big guys you -- their future's uncertain."
" Right but I hope so right leg you know they have to do it I think and in my mind -- is fun of those -- November 1 point oh companies. We just made all the right moves to transition to this new word right and you know. Beaches are mean something they have in common red -- top story of the me."
" Our top story in a week TiVo. One of my favorite companies just because it lets you watch my TV wherever I can watch it. And I always want to catch up on my TV TV just release a lower priced version of there's other hardware."
" Okay just to set the record straight it was not my number one story of the week I led the lady ran. Because I don't really care if there's 299 is not cheap it's not discount people by any means. And I want -- vote in my Comcast fox I just think for the first time a long time TVs actually --"
" Right there's still a lot of that's the -- Asia -- played battlestar which I will never miss an episode of heroes the great show you can buy that and iTunes. I want reveals just like have an all race plays going to want to play around moving in here moving if there anything along those lines I don't have my apple TV I don't panel that's up my house like YouTube. Thanks I do realize something like a TiVo right. But that they lowered the price shown at the right to -- and you know a different a different market than they were up before or maybe expand their horizons a bit beyond that so that they can. You know. Gets passed."
" Usage of fan now. You calling me a fan boy of five from fact. Hey she likes of Blackberry and your likes and you like my TV. And they analysts' mean little bit and -- and I got you all right -- loves her Blackberry and you I got nothing to do with it. He will be right back and overflows cast. James and my heart could not Hong who's gonna tell us from our. Social who have direct to go and a whole bunch."
" Welcome back from right now we're here with James Hong. Founder of are not thank you James for joining us you're welcome and we really sad to have me here to talk to us about social media because you -- doing social media before David was social media. -- yes and here come up with -- new stuff you're jumping on the bandwagon with the FaceBook applications and your. Doing remarkably well they spoke with your new hot list I threat to topple -- I came up with that and -- going what is it really doing product on the property."
" Well hot list is a product on that we actually launched on hundred not first but we said wow you know it's so cool wider question we. Why don't we do this on FaceBook and on other social networking sites as well we just -- on the go. What is essentially is is it's a tool for users to pick brands in bands and any anything basically that they associate with their style. And and enables them to put pictures of those things on there page of the MySpace page FaceBook page or whatever and it's kind of like it's kind of like done. Posters have people like to -- poster on the wall kind of like this is who I am if you if you look at all the posters on my all -- says this gives you good picture glam."
" So husband benefiting them are you planning and keeping -- product you really or within hot or not kind of it it really integrating with your revenue model."
" What actually so what we're doing is when you clicked into a brand or a band or whenever -- style -- as we're calling it. You go to a community where you can meet other people who are also interested in the same thing like so if I wanted to. Meet other people who have iphones letting go and an iPhone community and I can ask questions or you don't need to want to buy one and I have questions about it -- almanac yeah I -- of an old but good ideas actually don't work. We're merging those communities so hot or not users who likes iPhone. Might be talking to me FaceBook users who likes iPhone now it's all about the iPhone it's not about. Whether your face the keys are hot or not users just about iPhone so it is that community somebody Harden our site on -- some things it's wherever you happen to -- so if you're on hot or not it'll be on hot list top hundred not dot com. But if you're on the FaceBook side and you'll be. On FaceBook but it's one community about the iPhone separate databases. One -- one point where we're we're bridging the social networks together. Around --"
" So hitters that think with the FaceBook application everybody keeps stopping Embarq for a grade three to acquire customers losers community. Bird that is the money I mean what what do you do off to this after you've done this there are you taking this whole thing."
" Well for us in particular -- with our applications with hot lists in particular. You know the the advertising. Possibilities for us on those pages are strong right you know if you have. People coming around a specific product authority. Obviously you can advertise on higher seeds again right exactly what hot -- not as a whole is an entertainment site we didn't really have the targeting. With hot this -- building targeted communities where we can put an ad for an iPhone or 418 TO for Cingular. On the iPhone page whether you're on FaceBook or on hot or not. But beyond that we're also getting from doing this we're getting a lot of data about our users in general. So let's say you're a hot or not user and we haven't you know that you -- iPhone you like Britney Spears and Michael vocal and elect -- what that tells us a lot about you so when we show you other ads whether you're on those pages -- not we're gonna know a lot more about you we can show you ads that you can actually like as opposed to random ads that are not your style."
" Ooh that's scary to me now is -- you know I don't want anybody to know that I like Eminem is an iPhone but you know again I'm gonna press you on this face I don't think. Your heart list is an application on FaceBook does it drive traffic back to your site."
" On it does to some degree but you know we're not really trying to push it from the face but you it's about the community it's not about. Where you happen to be because as long as we can monetize those pages. It's it doesn't really matter to -- giving users the ability to opt out. Of that contract and behavior of the hot list -- he's a -- stuff it's quite simple on the you don't even have to add. You don't have to adhere -- in order to participate in -- specific community if you want to go and talk about iphones that you don't want to say oh everyone I like the iPhone that's fine. It does mean up to be about brands that's Celtics are not anything that relates to your style you know this whole FaceBook."
" Think I I still am not convinced. If there's any. Even long term benefit from -- you know. You have teams like highlight they're creating to a different user section on their main site and run on the FaceBook site. People like who are my top friends that is an application for that -- very is the potential. To make money as as as. We know far proffered and you have to kind of figure. You have to make money at some point I don't see that."
" Well you know I think it boils down to attention. Right now if if I happen to be controlling. Experience for user where I have his or her attention. Whether -- line might dot com property or if I'm on the FaceBook as long as the FaceBook makes it so I can monetize that I'm okay now. -- there's an argument that paid fees that is going to start imposing a tax you know and they're -- start charging you to deal to do that. That's okay you know FaceBook is a smart comedian realise that every successful platform Husted make its. Developers successful right they can never impose such attacks at noon we'll -- out in what there's no point in developing on here because then everyone will run away and developer somewhere else."
" I've been there and get it still doesn't is the pop the question is not. You know when they they charge an arm when the question is. How do the developers actually profit -- you can there's some people who write in fiscal application and then getting paid they're making money. Similarly you are getting some kind of Carmine and traffic and tracking and profiling -- formula users."
" Okay who hardly -- so so I don't know why don't answer of advertising it isn't working for you because you know we got can you know I've been contacted in fact today. I talked to two very very major brands who contacted us because they're interested in sponsoring various applications over -- are they going to sponsor on your side aren't your thing on application site which is aren't actually there there interest in boat because you run a lot of the same products on the."
" Us click on your side of the issue when quickly jump on it it does and you're off to sew the patient is really all targeted about that and typically comments and talk to each other but the product. And from a company perspective a lot want to control or influence how my -- economic -- It would seem like a decent place ago because you do have people letter. -- enough about it that they're willing to go up there and you show the world that's what they're supporting right in the I have actually another instinct question asked you it's all about you know how accurate is hot or not."
" This is really important question poem oh Malick the only to -- home it's hot or is he not. So we're not. -- literally it's where -- going to close some online and the hot or not let this week analysts -- the other results and we're going to try to figure out. What would you guess is ranking -- not to be."
" Got I don't know you know I did the problem is I know -- giggles and you could say you know when did you know it's hard when you -- someone you like other -- they're not and then you get to know them at their personalities kid and he started like elevating you know. That's a thing about hot or not it's it's about reprint them ratings from strangers not from people you know that's like an honest answer truthfully I can't tell you. -- I know home and I Michael means to me he would be who you be the first to be a perfect ten. Great and you know what's your heart and aren't a lot I'm like a six point one. To come on can tune into gaming. That's is it that we don't even read it for ourselves."
" Oh thank you so much for joining us really it was a pleasure having you here it and we look -- to -- you bet I can be six point fun yeah I can see they can't."
" Hey welcome back you're watching the get go on the show I moment. She's joyous and -- red. Build the hard drive -- CEO of Seagate. The man who never holds back that I have no thanks for improving on the job topic cabinet. Why is it there and."
" Everything we do now is hard difficult but that its videos music photos. Documents. You of the demand for storage keeps rising and companies like yourself. Finding your flicker to make profits. Who artist historian that like I mean you are has. Crucial to convince the -- revolution has banned fitness I panicked how come the profits are kind of skewed in that."
" Well I think it's a little bit of a misnomer because. With that's an improbable for our long time now as Seagate is it will make money after that we are not that I mean we have I mean I think it's it is an industry that's somewhat cyclical. It's big time competitors and we want one of the issues we have we with its you know its its Fujitsu Samsung is tied proxies Toshiba. Our competitors or our our you know 5000 billion dollar companies. And and so there want to lose money to be the try to be competitive against this but in that particular rob -- and it in the and we we compete against them. We they have done very well I mean now we have one of the you know when the toughest. Quarters of the year this last one was -- 38 cents a share in fact one of the things you look at if you look at the performance from profits. Revenue growth. Return RO YC and comparison against all the hype -- high tech companies for the last four years of actual finest the top 1%. Provides this perception there what I think."
" You just -- they say you you know you have one up quarter and then the next on his Don. Flyers and their remorse moved you know there's."
" Well again I think I think what the street I'll use Wall Street that they get concern about these price -- we have. I mean it's -- is -- IRS CNET and and so they don't there are how to predict that on how to predict what people are -- priced -- aggressively or not. And and and part of Indiana get there's only Justin Bobby did were public company so the only ones you really see they don't see Samsung we don't -- actually. To give an example last quarter. Can we meet 38 cent a share whatever. On a non GAAP basis me hypoxia. Out there when the largest compares we haven't lost a 160 million dollars. Just trying to keep up their price their products so that worries Wall Street but of the one of the things again I think I think that. As we evolve into this consumer you talk what does it I think Wall Street trying to wake up to I think to waking -- the fact that everything you're doing. In a consumer worlds being just -- and is being moved back contents been moved Italy and what enables that is a story suffice it distorts a -- so you can send it. There's a storage -- to receive it. And so that seemed content start to be replicated everywhere in the system. What enables the -- just don't wake up the fact that may be."
" Maybe storage is a better deal it's a funny situation regular five years ago he never talked about the consumer. Storage was EMC droves to story can end. In -- storage and you know big corporations drove Intel learning from Microsoft growth and our current. And now it's all about the consumer. Do you -- Silicon Valley needs to adopt a different mind state. To learn to live in this consumer reality -- that pro proffered Martin they're not as fact. Don't they might actually be an aggregate much larger."
" Com yeah I mean I I think what a great challenges that we haven't valley and he made a good point I mean the nineties was all about that applies in the office place. And a lot of people whether Cisco made money networking Microsoft the software IC said that absent teams in the storage side. Dale was really did really well and standard distribution model and an if you morph yourself to 2007. It's all about that lies in the home. And NEC Cisco buying scientific Atlantic cable box can be try to get their Microsoft to build her own consumer devices to get their software. You know apple came out of nowhere became a real consumer company -- be argue with in the night there were still there were consumer company that. So I think what what's -- see all of us Intel Seagate we all have to change. And we have to start being aware of what the consumer brings and what the consumer needs and it's a different skill set."
" And it looks exceed it starts moving that direction you guys are building a consume consumer oriented products is trying to increase the branding message it doesn't its products. By the -- we -- waging. These battles against competitors are willing to lose money just to -- Q right so how do you see this tactic that you've been taking to try to you know expand consumer brand curry and -- An image for -- is it really going is in Clinton well as you hoped you. Anticipating having to it up maybe the branding of things or."
" Well again I think -- the big challenge we have is when you do double brand we talk about Rico that does that to different skill set Emmy night I -- start. The first time my -- people came to me. And work company that's very comfortable spending a billion dollars on technology every year we spent a billion in technology are indeed witnessed an ability on capitol. And we can sit. And as a management team and look at someone comes and want to spend a hundred million dollars to develop some sort technology we can spend we can go through that 3040 minutes. And feel yea or Ney and and and feel comfortable that spend. OS -- got to present a ten million dollar marketing plan for retail and my whole management -- clue how can we spend ten million dollars on marketing because that's kind of soft Feely touchy stuff that we don't understand. And in fact during that conversation remember the one on the new designs are one of market -- if -- seen in our new -- retail we have these boards like that that on there. Well the only thing when they showed me the orange lights the only thing I can think. Was how much is like cost. And that's that's our mentality of -- like -- settle fighting costs and in doing that but that's."
" The enterprise focus Montana primary head to consumer -- you have somebody like Steve Jobs who. Who knows how to play the marketing game you and hard nosed journalist -- is you know -- tricks including myself. I become fan boys and making them. It's like a sixteen year old standing next week or future for our next president elect I want -- far right. But the fact that resorts has -- right leg that's -- moves. But that you know are hard to argue he's a hard drive right -- came from its marquee back and you can think software wrapped around her in his own words. That in mind -- party changed that."
" Well that I mean that's our talent and I think that sounds a lot of companies are valid and have. And and what word the big debate is can we really changed. Or do we need to bring in people that really know that space and listen to and I think he -- attacked we're trying to do that Seagate is really bring in people. Who understand that that that sort of space and and and I think that the real challenge and I'm gonna have a -- executive vice presidents will -- listen to. Inhuman corporal but let's say you're out there trying a higher Apple's marketing team and now at at -- how about not not that be nice but it would probably not gonna use that thing but -- that we've -- we actually -- we have a guy and our retail with a brought -- the music business -- He came out of marking out of a Gibson then and things like that we brought a person from Kodak. For consumers and things like that -- you Seagate -- the consumer branding iron no man you gotta do better than that. Well. Commit talents I think that necessarily though in order to be a consumer player. Not sure we have we don't have to be a Sony we don't have to be an apple to its -- very dry out well but we have to do though is designed really good customer solutions really good drives. And they'll find themselves in that consumer market can mean obviously gave -- it may be an HP brand maybe an apple -- Blow up at the date people need storage and that's what we do really well better X Apple's support work. Wouldn't hurt either. They're -- talk of our flash movies. Laptops you know replacing. You know high and you know the hard drive -- that what do you think of that. They about flash is that it has a couple really nice things about it it it it has low power. Bought in an application battery life. Give it capital put a full solid state -- it will save you about fifteen minutes. A full battery life and if you put a hybrid drive it. Down -- minutes. If you put a flash. Their thing flash does is allows you boot up but he can even put a hybrid on flash. And a boot up just -- saint. And what you don't have is very random write performance random my performers flashes report. And the right reliability report that's why they keep kind of going between SL and MLC process. The other thing is 32 gigabytes it's just not a very satisfying product if you're doing a lot of stuff. And it won't be still be sixty gigabytes in 2010 or 2011. But but the name of the game's going to be this costs per gigabyte because it once I put flash from hard drive. All the performance all power savings are equal. The shock is better with a solid state drive but solid state rise if you've. If you put a minute device are all going to crack in the fight breaks before you distortion of fact I'm sure if you look at people that run MP threes and stuffed -- the return rates are about the same for flash version harder for me you better hybrid yes. Wherever you -- and hybrid are okay and I would do a solid state may be too okay but what here's what I mean it won't be notebook. Solid state prior to going to show up. In enterprise. -- one RBI this site -- average hard drives shipping next year. 2008. Notebook Modesto. No book notebook today it's hundred gigabytes is the average today. It's going about ten to fifteen gigabytes a quarter so this time next year it'll be about 46070. -- The drive that by itself will be forty bucks okay. And laughter question I have communities. Where do you think is the earmark reform on people's external hard drive. You made a comment about that."
" You know I didn't what do the comment inmate was in and get it goes back that. You know I I sometimes get. Upset with people in the valley. Because they talk about the Internet they talk about what we're saving the world and were somehow. Curing cancer with our technology. We're actually taking the Dell laptop and bringing porn to kids and pack. It or not mean what we're doing it and and the point -- made was look. The Internet is really. Selling information. Selling business and porn at a scale that we really haven't imagine since the the menace he's convinced the Pope to charge interest and that's all I said it was more about. You know -- so much of hope Warren it was about the fact that let let's let's be honest about what our businesses and if we want to change world. Change your company's treat your employees better treat your community that if people want to change the world can involve. And your community can almost like but don't don't don't sit there and forget about your community forget about employees and somehow be self satisfied that your -- in the world because."
" You're an Internet you know from around you had been here since 78 OK thanks well it was great to have you on the show. And hopefully you come back and you know we talk more in. You know predict the future. I would be right back -- you know reading some of your letters comments and the talk some more about what's coming up enough to show us."
" Welcome back I'm Joyce and that's -- home. So we like your feedback and comments and questions about our show and you -- enough that you go home at revision3.com. Will be answering this question the comments if you for future episodes but in the times. We pulled one of the comments off of GigaOM dot com -- which was a writer reading in their response to -- iPhone story and JC -- home you're now -- apple fan way congrats I confess I don't restroom totally true almost always all up on Apple's products and Steve Jobs."
" Hey you know it's like you gotta like somebody I can be a hater all the time and play that's one thing anyway I'm not loving apple product right now. My laptop died over the weekend I had to be farmland to drive. And the genius -- was actually more of a moron bar so I'm not that much of after a fan right now I mean that you did they do all your future support work at he's San Francisco apple is only. I'm might actually do this not to use it like humans just like I knew more than they did so anyway. Regardless of that keynotes we know traumatic few days and our computer and I couldn't you know it's like I'm a fan boy you know it's a beautiful product it's like. It's like liking who -- BMW you know and you'd like apple I mean it's like. We have our share of -- bringing them my panache I would give them have landed screw up that much I can tell you maybe if Panama. For money tied me. -- be back next week with more -- more fun story even more opinion. Please write to us say it can go made provision for me I'm oh he's charged and you just watch his own show. Anyway I hope this show make -- expectations. We have -- might be guessed between don't have a chance of getting -- this bastard to. But that's not going to happen to next week I'm old -- shows you just watch his own keys."
" Support for the -- got home she -- he's provided by jangled."
" The get go home show you sponsored by jangled. Hello and welcome to the inaugural episode of the -- don't show I'm the -- indigo. And Joyce Kim and each week we're -- bringing the latest in tech news and happenings what's hot what's not power brokers newcomers. Everything that from all around the work. But before we get to that. This week's pick lions -- lines because that's how we --"
" So today's number five hit line is Netflix stumbles. Right so they reduced their there subscription price on two of their packages by a dollar. And the market went crazy so apparently they're having some tough."
" I'm a blockbuster and other companies are duking it out each and refused to make money for some -- reason. I mean I haven't been to blockbuster forever -- I used -- makes this week. Lindsay you know I'm videos -- margins you've them. I believe she's in jail again if she isn't again but you know it it's going to be fun I think it's a good thing for the consumer don't you think."
" And he's finishing I think so sad that you have a big company like blockbuster that actually makes no money able to beat up look pretty profitable company like Netflix. Over something like this but they do offer a little more convenience that you can go -- not just a male thinking going you can put. Swap it out he can go home with another one."
" Rule and you know for me it's a CD it's a dvd -- that on -- I don't care and if they they get into a price far be so beard because I'll have to pay less to watch Lindsay. And you and number two story we have this week is iPhone iPhone had apparently had a pretty rough. We can't -- so opening weekend laws and like. Like 700000. Activation of fire under -- and activation thing -- 146 pounds."
" Right and partially because of his way too much -- right way to much buzz about how many before there and of and all the people staying online so the sales income up -- eighteenth -- Amber's only reflect. The eighteen technicians up to June 30 so we'll have to see how that plays at work."
" 82 activation is amendment right right and not having everybody that's not so as Kevin. I mark my number July 8."
" Yet but I do think that this is the first you know sign that the Golden -- on the iPhone start to diminish -- security -- stories going right now which. You with the learn all of them more about ends we have this issue here that maybe this they're not flying off the shelves -- people expected them with left the show you for."
" They hate it may be a black and you that it seems that."
" I am a black razor and I don't have any problems at that again on my you know my attachments as move on. So the next -- that we have is the big question their -- us now is FaceBook worth ten billion dollars."
" To somebody because it's all of our perception right you know that's images everything it's very much like that do. A lot of noise and armed FaceBook everybody's breathing applications remark around and you know the people are calling a dissolution -- asked this and that. I guess somebody's -- car to check 10000015 million who knows it's a lark a sucker is willing to pay for something. It's always been very marcher and interactive and beautiful and -- you have to find the beautiful."
" And of course that adds that this the Packers have to do set of the Edison a very high precedent and very high expectations so that they don't get any low ball offers like -- Chevy one billion dollar off I know Iraq you know markets smart he -- not to drive prices up for the fascists so. Advertising is one way that -- will be looking to make money right prove that ten million dollar valuation write part of --"
" I think this week's number two story is AOL did geniuses are buying a coda for 275. Million dollars. This whole Arab madness on advertising has started mostly because. Lou Lou Bart DoubleClick today which is still Barack all right and FTC is investigating that and -- there is just -- This is some consolidation every crappy company can --"
" Not Arab brother so lot of them out there and some of them are more crappy than others but -- trying to distinguish themselves differentiate themselves from the field by doing a whole behavioral targeting. I'm -- more about consumer feed them what they need rain I know the you work with Dakota bit."
" Yes and I was serving Jenny Craig act on my site which is is -- technology. -- tell you that that it doesn't work. The iPhone departed works really rather -- would be led that thing home lose some great -- we can correct frank Rich's name wrong kind of poverty."
" But it does show that -- still only acquisition game and other still trying to compete with the big guys you -- their future's uncertain."
" Right but I hope so right leg you know they have to do it I think and in my mind -- is fun of those -- November 1 point oh companies. We just made all the right moves to transition to this new word right and you know. Beaches are mean something they have in common red -- top story of the me."
" Our top story in a week TiVo. One of my favorite companies just because it lets you watch my TV wherever I can watch it. And I always want to catch up on my TV TV just release a lower priced version of there's other hardware."
" Okay just to set the record straight it was not my number one story of the week I led the lady ran. Because I don't really care if there's 299 is not cheap it's not discount people by any means. And I want -- vote in my Comcast fox I just think for the first time a long time TVs actually --"
" Right there's still a lot of that's the -- Asia -- played battlestar which I will never miss an episode of heroes the great show you can buy that and iTunes. I want reveals just like have an all race plays going to want to play around moving in here moving if there anything along those lines I don't have my apple TV I don't panel that's up my house like YouTube. Thanks I do realize something like a TiVo right. But that they lowered the price shown at the right to -- and you know a different a different market than they were up before or maybe expand their horizons a bit beyond that so that they can. You know. Gets passed."
" Usage of fan now. You calling me a fan boy of five from fact. Hey she likes of Blackberry and your likes and you like my TV. And they analysts' mean little bit and -- and I got you all right -- loves her Blackberry and you I got nothing to do with it. He will be right back and overflows cast. James and my heart could not Hong who's gonna tell us from our. Social who have direct to go and a whole bunch."
" Welcome back from right now we're here with James Hong. Founder of are not thank you James for joining us you're welcome and we really sad to have me here to talk to us about social media because you -- doing social media before David was social media. -- yes and here come up with -- new stuff you're jumping on the bandwagon with the FaceBook applications and your. Doing remarkably well they spoke with your new hot list I threat to topple -- I came up with that and -- going what is it really doing product on the property."
" Well hot list is a product on that we actually launched on hundred not first but we said wow you know it's so cool wider question we. Why don't we do this on FaceBook and on other social networking sites as well we just -- on the go. What is essentially is is it's a tool for users to pick brands in bands and any anything basically that they associate with their style. And and enables them to put pictures of those things on there page of the MySpace page FaceBook page or whatever and it's kind of like it's kind of like done. Posters have people like to -- poster on the wall kind of like this is who I am if you if you look at all the posters on my all -- says this gives you good picture glam."
" So husband benefiting them are you planning and keeping -- product you really or within hot or not kind of it it really integrating with your revenue model."
" What actually so what we're doing is when you clicked into a brand or a band or whenever -- style -- as we're calling it. You go to a community where you can meet other people who are also interested in the same thing like so if I wanted to. Meet other people who have iphones letting go and an iPhone community and I can ask questions or you don't need to want to buy one and I have questions about it -- almanac yeah I -- of an old but good ideas actually don't work. We're merging those communities so hot or not users who likes iPhone. Might be talking to me FaceBook users who likes iPhone now it's all about the iPhone it's not about. Whether your face the keys are hot or not users just about iPhone so it is that community somebody Harden our site on -- some things it's wherever you happen to -- so if you're on hot or not it'll be on hot list top hundred not dot com. But if you're on the FaceBook side and you'll be. On FaceBook but it's one community about the iPhone separate databases. One -- one point where we're we're bridging the social networks together. Around --"
" So hitters that think with the FaceBook application everybody keeps stopping Embarq for a grade three to acquire customers losers community. Bird that is the money I mean what what do you do off to this after you've done this there are you taking this whole thing."
" Well for us in particular -- with our applications with hot lists in particular. You know the the advertising. Possibilities for us on those pages are strong right you know if you have. People coming around a specific product authority. Obviously you can advertise on higher seeds again right exactly what hot -- not as a whole is an entertainment site we didn't really have the targeting. With hot this -- building targeted communities where we can put an ad for an iPhone or 418 TO for Cingular. On the iPhone page whether you're on FaceBook or on hot or not. But beyond that we're also getting from doing this we're getting a lot of data about our users in general. So let's say you're a hot or not user and we haven't you know that you -- iPhone you like Britney Spears and Michael vocal and elect -- what that tells us a lot about you so when we show you other ads whether you're on those pages -- not we're gonna know a lot more about you we can show you ads that you can actually like as opposed to random ads that are not your style."
" Ooh that's scary to me now is -- you know I don't want anybody to know that I like Eminem is an iPhone but you know again I'm gonna press you on this face I don't think. Your heart list is an application on FaceBook does it drive traffic back to your site."
" On it does to some degree but you know we're not really trying to push it from the face but you it's about the community it's not about. Where you happen to be because as long as we can monetize those pages. It's it doesn't really matter to -- giving users the ability to opt out. Of that contract and behavior of the hot list -- he's a -- stuff it's quite simple on the you don't even have to add. You don't have to adhere -- in order to participate in -- specific community if you want to go and talk about iphones that you don't want to say oh everyone I like the iPhone that's fine. It does mean up to be about brands that's Celtics are not anything that relates to your style you know this whole FaceBook."
" Think I I still am not convinced. If there's any. Even long term benefit from -- you know. You have teams like highlight they're creating to a different user section on their main site and run on the FaceBook site. People like who are my top friends that is an application for that -- very is the potential. To make money as as as. We know far proffered and you have to kind of figure. You have to make money at some point I don't see that."
" Well you know I think it boils down to attention. Right now if if I happen to be controlling. Experience for user where I have his or her attention. Whether -- line might dot com property or if I'm on the FaceBook as long as the FaceBook makes it so I can monetize that I'm okay now. -- there's an argument that paid fees that is going to start imposing a tax you know and they're -- start charging you to deal to do that. That's okay you know FaceBook is a smart comedian realise that every successful platform Husted make its. Developers successful right they can never impose such attacks at noon we'll -- out in what there's no point in developing on here because then everyone will run away and developer somewhere else."
" I've been there and get it still doesn't is the pop the question is not. You know when they they charge an arm when the question is. How do the developers actually profit -- you can there's some people who write in fiscal application and then getting paid they're making money. Similarly you are getting some kind of Carmine and traffic and tracking and profiling -- formula users."
" Okay who hardly -- so so I don't know why don't answer of advertising it isn't working for you because you know we got can you know I've been contacted in fact today. I talked to two very very major brands who contacted us because they're interested in sponsoring various applications over -- are they going to sponsor on your side aren't your thing on application site which is aren't actually there there interest in boat because you run a lot of the same products on the."
" Us click on your side of the issue when quickly jump on it it does and you're off to sew the patient is really all targeted about that and typically comments and talk to each other but the product. And from a company perspective a lot want to control or influence how my -- economic -- It would seem like a decent place ago because you do have people letter. -- enough about it that they're willing to go up there and you show the world that's what they're supporting right in the I have actually another instinct question asked you it's all about you know how accurate is hot or not."
" This is really important question poem oh Malick the only to -- home it's hot or is he not. So we're not. -- literally it's where -- going to close some online and the hot or not let this week analysts -- the other results and we're going to try to figure out. What would you guess is ranking -- not to be."
" Got I don't know you know I did the problem is I know -- giggles and you could say you know when did you know it's hard when you -- someone you like other -- they're not and then you get to know them at their personalities kid and he started like elevating you know. That's a thing about hot or not it's it's about reprint them ratings from strangers not from people you know that's like an honest answer truthfully I can't tell you. -- I know home and I Michael means to me he would be who you be the first to be a perfect ten. Great and you know what's your heart and aren't a lot I'm like a six point one. To come on can tune into gaming. That's is it that we don't even read it for ourselves."
" Oh thank you so much for joining us really it was a pleasure having you here it and we look -- to -- you bet I can be six point fun yeah I can see they can't."
" Hey welcome back you're watching the get go on the show I moment. She's joyous and -- red. Build the hard drive -- CEO of Seagate. The man who never holds back that I have no thanks for improving on the job topic cabinet. Why is it there and."
" Everything we do now is hard difficult but that its videos music photos. Documents. You of the demand for storage keeps rising and companies like yourself. Finding your flicker to make profits. Who artist historian that like I mean you are has. Crucial to convince the -- revolution has banned fitness I panicked how come the profits are kind of skewed in that."
" Well I think it's a little bit of a misnomer because. With that's an improbable for our long time now as Seagate is it will make money after that we are not that I mean we have I mean I think it's it is an industry that's somewhat cyclical. It's big time competitors and we want one of the issues we have we with its you know its its Fujitsu Samsung is tied proxies Toshiba. Our competitors or our our you know 5000 billion dollar companies. And and so there want to lose money to be the try to be competitive against this but in that particular rob -- and it in the and we we compete against them. We they have done very well I mean now we have one of the you know when the toughest. Quarters of the year this last one was -- 38 cents a share in fact one of the things you look at if you look at the performance from profits. Revenue growth. Return RO YC and comparison against all the hype -- high tech companies for the last four years of actual finest the top 1%. Provides this perception there what I think."
" You just -- they say you you know you have one up quarter and then the next on his Don. Flyers and their remorse moved you know there's."
" Well again I think I think what the street I'll use Wall Street that they get concern about these price -- we have. I mean it's -- is -- IRS CNET and and so they don't there are how to predict that on how to predict what people are -- priced -- aggressively or not. And and and part of Indiana get there's only Justin Bobby did were public company so the only ones you really see they don't see Samsung we don't -- actually. To give an example last quarter. Can we meet 38 cent a share whatever. On a non GAAP basis me hypoxia. Out there when the largest compares we haven't lost a 160 million dollars. Just trying to keep up their price their products so that worries Wall Street but of the one of the things again I think I think that. As we evolve into this consumer you talk what does it I think Wall Street trying to wake up to I think to waking -- the fact that everything you're doing. In a consumer worlds being just -- and is being moved back contents been moved Italy and what enables that is a story suffice it distorts a -- so you can send it. There's a storage -- to receive it. And so that seemed content start to be replicated everywhere in the system. What enables the -- just don't wake up the fact that may be."
" Maybe storage is a better deal it's a funny situation regular five years ago he never talked about the consumer. Storage was EMC droves to story can end. In -- storage and you know big corporations drove Intel learning from Microsoft growth and our current. And now it's all about the consumer. Do you -- Silicon Valley needs to adopt a different mind state. To learn to live in this consumer reality -- that pro proffered Martin they're not as fact. Don't they might actually be an aggregate much larger."
" Com yeah I mean I I think what a great challenges that we haven't valley and he made a good point I mean the nineties was all about that applies in the office place. And a lot of people whether Cisco made money networking Microsoft the software IC said that absent teams in the storage side. Dale was really did really well and standard distribution model and an if you morph yourself to 2007. It's all about that lies in the home. And NEC Cisco buying scientific Atlantic cable box can be try to get their Microsoft to build her own consumer devices to get their software. You know apple came out of nowhere became a real consumer company -- be argue with in the night there were still there were consumer company that. So I think what what's -- see all of us Intel Seagate we all have to change. And we have to start being aware of what the consumer brings and what the consumer needs and it's a different skill set."
" And it looks exceed it starts moving that direction you guys are building a consume consumer oriented products is trying to increase the branding message it doesn't its products. By the -- we -- waging. These battles against competitors are willing to lose money just to -- Q right so how do you see this tactic that you've been taking to try to you know expand consumer brand curry and -- An image for -- is it really going is in Clinton well as you hoped you. Anticipating having to it up maybe the branding of things or."
" Well again I think -- the big challenge we have is when you do double brand we talk about Rico that does that to different skill set Emmy night I -- start. The first time my -- people came to me. And work company that's very comfortable spending a billion dollars on technology every year we spent a billion in technology are indeed witnessed an ability on capitol. And we can sit. And as a management team and look at someone comes and want to spend a hundred million dollars to develop some sort technology we can spend we can go through that 3040 minutes. And feel yea or Ney and and and feel comfortable that spend. OS -- got to present a ten million dollar marketing plan for retail and my whole management -- clue how can we spend ten million dollars on marketing because that's kind of soft Feely touchy stuff that we don't understand. And in fact during that conversation remember the one on the new designs are one of market -- if -- seen in our new -- retail we have these boards like that that on there. Well the only thing when they showed me the orange lights the only thing I can think. Was how much is like cost. And that's that's our mentality of -- like -- settle fighting costs and in doing that but that's."
" The enterprise focus Montana primary head to consumer -- you have somebody like Steve Jobs who. Who knows how to play the marketing game you and hard nosed journalist -- is you know -- tricks including myself. I become fan boys and making them. It's like a sixteen year old standing next week or future for our next president elect I want -- far right. But the fact that resorts has -- right leg that's -- moves. But that you know are hard to argue he's a hard drive right -- came from its marquee back and you can think software wrapped around her in his own words. That in mind -- party changed that."
" Well that I mean that's our talent and I think that sounds a lot of companies are valid and have. And and what word the big debate is can we really changed. Or do we need to bring in people that really know that space and listen to and I think he -- attacked we're trying to do that Seagate is really bring in people. Who understand that that that sort of space and and and I think that the real challenge and I'm gonna have a -- executive vice presidents will -- listen to. Inhuman corporal but let's say you're out there trying a higher Apple's marketing team and now at at -- how about not not that be nice but it would probably not gonna use that thing but -- that we've -- we actually -- we have a guy and our retail with a brought -- the music business -- He came out of marking out of a Gibson then and things like that we brought a person from Kodak. For consumers and things like that -- you Seagate -- the consumer branding iron no man you gotta do better than that. Well. Commit talents I think that necessarily though in order to be a consumer player. Not sure we have we don't have to be a Sony we don't have to be an apple to its -- very dry out well but we have to do though is designed really good customer solutions really good drives. And they'll find themselves in that consumer market can mean obviously gave -- it may be an HP brand maybe an apple -- Blow up at the date people need storage and that's what we do really well better X Apple's support work. Wouldn't hurt either. They're -- talk of our flash movies. Laptops you know replacing. You know high and you know the hard drive -- that what do you think of that. They about flash is that it has a couple really nice things about it it it it has low power. Bought in an application battery life. Give it capital put a full solid state -- it will save you about fifteen minutes. A full battery life and if you put a hybrid drive it. Down -- minutes. If you put a flash. Their thing flash does is allows you boot up but he can even put a hybrid on flash. And a boot up just -- saint. And what you don't have is very random write performance random my performers flashes report. And the right reliability report that's why they keep kind of going between SL and MLC process. The other thing is 32 gigabytes it's just not a very satisfying product if you're doing a lot of stuff. And it won't be still be sixty gigabytes in 2010 or 2011. But but the name of the game's going to be this costs per gigabyte because it once I put flash from hard drive. All the performance all power savings are equal. The shock is better with a solid state drive but solid state rise if you've. If you put a minute device are all going to crack in the fight breaks before you distortion of fact I'm sure if you look at people that run MP threes and stuffed -- the return rates are about the same for flash version harder for me you better hybrid yes. Wherever you -- and hybrid are okay and I would do a solid state may be too okay but what here's what I mean it won't be notebook. Solid state prior to going to show up. In enterprise. -- one RBI this site -- average hard drives shipping next year. 2008. Notebook Modesto. No book notebook today it's hundred gigabytes is the average today. It's going about ten to fifteen gigabytes a quarter so this time next year it'll be about 46070. -- The drive that by itself will be forty bucks okay. And laughter question I have communities. Where do you think is the earmark reform on people's external hard drive. You made a comment about that."
" You know I didn't what do the comment inmate was in and get it goes back that. You know I I sometimes get. Upset with people in the valley. Because they talk about the Internet they talk about what we're saving the world and were somehow. Curing cancer with our technology. We're actually taking the Dell laptop and bringing porn to kids and pack. It or not mean what we're doing it and and the point -- made was look. The Internet is really. Selling information. Selling business and porn at a scale that we really haven't imagine since the the menace he's convinced the Pope to charge interest and that's all I said it was more about. You know -- so much of hope Warren it was about the fact that let let's let's be honest about what our businesses and if we want to change world. Change your company's treat your employees better treat your community that if people want to change the world can involve. And your community can almost like but don't don't don't sit there and forget about your community forget about employees and somehow be self satisfied that your -- in the world because."
" You're an Internet you know from around you had been here since 78 OK thanks well it was great to have you on the show. And hopefully you come back and you know we talk more in. You know predict the future. I would be right back -- you know reading some of your letters comments and the talk some more about what's coming up enough to show us."
" Welcome back I'm Joyce and that's -- home. So we like your feedback and comments and questions about our show and you -- enough that you go home at revision3.com. Will be answering this question the comments if you for future episodes but in the times. We pulled one of the comments off of GigaOM dot com -- which was a writer reading in their response to -- iPhone story and JC -- home you're now -- apple fan way congrats I confess I don't restroom totally true almost always all up on Apple's products and Steve Jobs."
" Hey you know it's like you gotta like somebody I can be a hater all the time and play that's one thing anyway I'm not loving apple product right now. My laptop died over the weekend I had to be farmland to drive. And the genius -- was actually more of a moron bar so I'm not that much of after a fan right now I mean that you did they do all your future support work at he's San Francisco apple is only. I'm might actually do this not to use it like humans just like I knew more than they did so anyway. Regardless of that keynotes we know traumatic few days and our computer and I couldn't you know it's like I'm a fan boy you know it's a beautiful product it's like. It's like liking who -- BMW you know and you'd like apple I mean it's like. We have our share of -- bringing them my panache I would give them have landed screw up that much I can tell you maybe if Panama. For money tied me. -- be back next week with more -- more fun story even more opinion. Please write to us say it can go made provision for me I'm oh he's charged and you just watch his own show. Anyway I hope this show make -- expectations. We have -- might be guessed between don't have a chance of getting -- this bastard to. But that's not going to happen to next week I'm old -- shows you just watch his own keys."
" Support for the -- got home she -- he's provided by jangled."








