.
MARIA: WELCOME BACK TO "WALL
STREET."
MORE NOW OF MY EXCLUSIVE
INTERVIEW WITH BARRY DILLER, HE
HAS HAD A FRONT ROW SEAT TO THE
TECHNOLOGY REVOLUTION, THAT'S
WHERE THE CONVERSATION
CONTINUES.
ARE YOU SURPRISED WHAT HAS
TAKEN PLACE IN THE LAST 25
YEARS?
I MEAN, WHEN YOU --
>> WELL, SHOCKED -- NOT
SHOCKED, IT'S A STUPID THING.
WHEN YOU'RE INSIDE OF A
REVOLUTION, WHICH I WAS LUCKY
ENOUGH TO GET INTO IN TIMING TO
GET INTO AT A VERY EARLY STAGE,
YOU DON'T REALIZE THE EFFECTS
OF WHAT IS HAPPENING SO TO
SPEAK AROUND YOU.
BUT THIS REVOLUTION, WHICH
BEGAN IN '95, DIGITAL, ACTUALLY
THIS INTERNET, THIS
INTERACTIVITY.
MY INTERACTIVITY EXPERIENCE
STARTED AT HOME SHOPPING
NETWORK AND QVC.
MARIA: GOTCHA.
>> THIS HAPPENED -- THIS IS A
TRULY RADICAL REVOLUTION, AND
RIGHT NOW IT'S A VERY TROUBLED
REVOLUTION, WHICH HAPPENS AT
LET'S CALL IT REALLY EARLY
STAGES.
>> WHY IS IT TROUBLEED?
>> WELL, LOOK AT WHAT HAS
HAPPENED WITH FACEBOOK AND WITH
GOOGLE AND WITH ALL OF THE
LARGE PLAYERS IN
COMMUNICATIONS, SOCIAL
COMMUNICATIONS, WHERE THE
PROLIFERATION, THE ABILITY TO
SIMPLY GET INTO THE SYSTEM WITH
INFECTIOUS DISEASE, BAD, EVIL
THOUGHT, MANIPULATIONS BY
RUSSIAN OR BY THE CHINESE OR BY
THIS POLITICAL ACTION SIDE OR
THAT.
THE DEMONIZING OF GEORGE SOROS.
MARIA: REACHES IN.
>> AND, IN FACT, WHERE EVERYONE
OF THESE, FACEBOOK ANNOUNCED
THEY HAD A HUGE BREACH.
EVERY TECHNOLOGY COMPANY.
THE CYBER WARFARE OF IT, ALL OF
THESE THINGS ARE JUST -- IT'S
JUST THE STIR OF WHAT HAS BEEN
ENABLED, AND WE'RE NOT EVEN YET
AT THE BEGINNING STAGE OF
TAMING IT, AND IT WILL, OVER
TIME, GET TAMED.
I THINK IT'S GOING TO GET TAMED
BY REGULATION.
MARIA: LET ME ASK BUT CHINA,
THIS IS A MARKETPLACE THAT'S A
BIG OPPORTUNITY FAIR LOT OF THE
COMPANIES, YOURS INCLUDED.
GOOGLE RECENTLY SAID IT'S GOING
TO TAKE ITS SEARCH ENGINE TO
CHINA.
THAT MEANS IT'S GOING TO BE
CENSORING IT.
I SPOKE WITH STEVE BALLMER
RECENTLY AND HERE'S WHAT HE
SAID.
90% OF COMPANIES IN CHINA USE
THE MICROSOFT OPERATING SYSTEM,
BUT LIKE 1% PAY.
>> CERTAINLY, AS I LEFT A FEW
YEARS AGO, THAT WAS RIGHT.
I'M A FREE TRADER BY NATURE.
I WENT TO SCHOOL, ECONOMICS,
IT'S THE BEST THING FOR THE
WORLD.
THIS ONE IS A TRICKY ISSUE,
IT'S ABSOLUTELY CLEAR THAT THE
RULES DON'T APPLY IN CHINA, AND
THE U.S. GOVERNMENT NEEDS TO DO
SOMETHING WHETHER TARIFFS ARE
RIGHT OR WRONG, I'M SILENT ON
THAT POINT, BUT WITHOUT
PRESSURE FROM THE U.S.
GOVERNMENT.
WE'RE TALKING ABOUT $10 BILLION
PLUS FOR EXAMPLE IN MICROSOFT
THAT WOULD GO INTO PROFIT.
>> THEY'RE GOING TO HAVE TO
BECOME -- THEY HAVE HAD SUCH AN
EXTRAORDINARY REVOLUTION OF
ACTUALLY BLENDING COMMERCE INTO
THEIR OTHERWISE DRAB LIVES OF
30, 40 YEARS AGO AND SUCH
INCREDIBLE GROWTH, SO THEIR
EXCESS IS ALL OVER THE PLACE.
THEIR TRADE PRACTICES HAVE TO
CHANGE.
AND US BEING TOUGH MINDED ABOUT
IT I THINK IS SENSIBLE.
I THINK US BEING OUTRAGEOUS AND
EXCESSIVE ABOUT IT IS
DANGEROUS.
I THINK TRADE WARS -- IF YOU
LET AN UNFETTERRED TRADE WAR
ACTUALLY TAKE PLACE WHICH IS IN
OUR CONTROL, IT WILL BE
DISASTROUS FOR EVERYBODY.
SO THEY WILL HAVE TO MATURE
THEIR PRACTICES.
BECAUSE THAT IS INEVITABLE.
OTHERWISE, THEY'RE GOING TO
SIMPLY SERVE THEIR OWN MARKET,
WHICH IS PRETTY BIG, AND BE
ISOLATED FROM THE WORLD, WHICH
IS NOT THEIR DESIRE, AND WILL
BE BAD FOR EVERYBODY.
MARIA: THEY WON'T EVEN ADMIT
THEY'RE STEALING THOUGH, BARRY.
WHAT DO WE DO?
WHAT IS THE U.S. SUPPOSED TO DO
TO STOP CHINA FROM TAKING OUR
INTELLECTUAL PROPERTY WHICH
YOU'VE SEEN IN YOUR CAREER OVER
AND OVER AGAIN.
>> ENDLESSLY, WHAT ARE WE
SUPPOSED TO DO?
WE'RE SUPPOSED TO BE IN
DIFFICULT CONVERSATIONS AND
WITH CHALLENGING POLICIES TO
TRY AND GET THEM TO JOIN THE
WORLD IN TERMS OF THE
PROTECTION OF INTELLECTUAL
PROPERTY, IN TERMS OF ALL SORTS
OF EXCESSIVE TRADE PRACTICES.
MARIA: LET ME TALK ABOUT
CONTENT A LITTLE.
THIS IS INITIALLY YOUR BREAD
AND BUTTER, CONTENT OVER THE
YEARS.
>> NARRATIVE FORM.
MARIA: CONTENT IS KING AGAIN,
MAYBE IT NEVER STOPPED BEING
KING.
YOU HAVE ALL THE STREAMING
COMPANIES PLANNING TO GO
HEAD-TO-HEAD WITH NETFLIX.
>> THAT'S A FOOL'S ERRANT.
MARIA: WHY?
>> BECAUSE NETFLIX, THESE
THINGS HAVE HAPPENED.
HBO, WHEN IT STARTED,
ESSENTIALLY WAS BUILT ON THE
BACK OF MOVIE COMPANIES MOVIES.
AND IT PAID REALLY DEARLY FOR
THEM, UNTIL IT GOT TO BE THE
ONLY PAYER IN TOWN, IN WHICH
CASE AT THAT MOMENT, IT THEN
REVERSED ITS POLICIES ON MOVIES
AND PAYING THE MOST AND KIND OF
DICTATED BECAUSE IT HAD THAT
KIND OF CONTROL, BECAUSE IT WAS
THE ONLY PLAYER BIGTIME PLAYER
IN PRIME SUBSCRIPTION SERVICES.
NETFLIX WAS ANOTHER KIND OF
ACCIDENT, WHICH IS ALL THE
INCUMBENTS, ALL THE MOVIE
COMPANIES, TELEVISION COMPANIES
SOLD THEIR PRODUCT TO NETFLIX,
BUILT NETFLIX, AND NOW AT MERCY
OF NETFLIX.
THIS IS THE WAY KIND OF THESE
THINGS WORK.
SO NETFLIX NOW HAS -- IT HAS
SUCH A HUGE ADVANTAGE IN TERMS
OF ITS 130 MILLION SUBSCRIBERS,
CLOSEST COMPETITOR HAS LESS