 Welcome to the extraction point. This is where we turn data into action. We've been briefed and have analyzed all the information flow. Now it's time to make sense of it all. I'm John Furrier. And today on the extraction point, we're going to find the extraction point in mobile. Is it the software or the platform that matters? The tech bubble frenzy, fear and panic. LA Times wrote a story this Sunday. It shows that the writer is really not looking at the right data. He's wondering if all the big valuations in tech are a return to the insanity of the bubble. I'll tell you why he's right and wrong. We have some HP and exclusive insight into the recent acquisition of Vertica. An analytics infrastructure is the big play and what that means for HP in the market. And Apple taking 30% from publishers in their new in-app store subscription model. Does that mean higher prices for readers? We'll look at all the signal coming out of Mobile World Congress in Barcelona. And we have a guest from Roku, Brian Jequette, talking about the data in video. This is the data. I'm John Furrier, and this is your extraction point. Okay, we're here with Brian from Roku. Welcome to extraction point. We've been briefed on all the important stories and events in the world of emerging information. Now it's time to extract the data and turn it into action. Live from the SiliconANGLE studios in the heart. Is it going to be a big debate out there? What do you think about that? I think platform is very important. We see the same thing on Roku's side. Having a platform for the distribution of content, basically an easy way for content to come down to these devices. You're seeing smartphones are just so rich now in their capabilities that software is important in apps and those types of things. But at the same time, you know, great example today, online and HTC announcing a partnership to bring the online gaming platform straight to a tablet or a handheld device. And that's just, that's a really powerful platform message that's being delivered from the cloud. Yeah, and then there's also the big software message. I mean Apple has that, you know, closed platform. Android has the open platform. And that's the big thing. What makes the mobile king these days? Is it the software, the platform? And Android seems to be pushing the platform play and the developers who know cross-platform seem to be the winners. And the question is, can Android carry that over for them? Well, I think that the open platform that Android has is very, very enticing to publishers, to content owners, content creators, because they can basically take their content and spread it across multiple devices, whether it be tablets, whether it be smartphones, and even, obviously, their foray into Google TV and trying to bring that same content to the television. Yeah, I mean, I think the big extraction point for mobile, in my opinion, is the fact that, you know, all the talk from CES in January now recently in Barcelona with Mobile World Congress is the tablet craze. And that really points to two different approaches. Apple versus Google. That's Apple, closed system versus Android, the open system. And really, the developers who can program cross-platform will be the big winners and will have to see what shakes out the closed Apple or open Android. I still believe that the key thing is going to be Apple right now. Apple just seems to have a great user experience. Some people have been telling me privately that Android's numbers are a bit overinflated due to the China market. I think that's a key extraction point. If that's the case, then most of the market data in mobile is really overblown in favor of Android. So my extraction point is Apple still in the lead. Android's far behind. And that even goes further today at Mobile World Congress where Eric Schmidt, the CEO of Google said to the crowd that they'd love to see Nokia on Android rather than going with Microsoft. To me, that still tells me that they still want to make a play for Nokia. So that's the extraction point for mobile. It's hot. Everyone wants mobile. Everyone wants a smartphone. And that's what you need to pay attention to. I'd stay with Apple for now. Android's still got a lot of work to do. And that's my extraction point on mobile. So the next extraction point is the tech bubble. So you've been following the tech bubble frenzy going on in the past couple of weeks? Hey, who hasn't? Silicon Valley's hot. It remains to be the hub for all things tech. So Michael Hitzlick, I think his name is on Sunday LA Times. I don't know him very well, but apparently he wrote this crazy article. And I totally disagree with him and need to call him out on it. He doesn't know what he's talking about. It's the typical fear mongering, oh, we're living in a bubble, Silicon Valley. I will say that it's very bubble-ish. And I wrote a post that there is a bubble, but it's not a bubble. There's two kinds of bubbles. There's the dot-com bubble that we all are familiar with that just completely imploded and carnage everywhere. And it was horrible. I mean, we're seeing some big brands out here. He talked about Facebook Groupon. And I wrote the post and said that the extraction point for this is simply these big new mega franchises are making money. So I think they're worthy of that kind of valuation. When you see Twitter, for example, having massive valuations, I mean, what other company can throw a government into freedom literally overnight? That's Facebook and Twitter. To me, that's a serious valuation. Unconventional metrics to value that. Okay, I think they deserve it. Zynga, they're printing money. Groupon, printing money. Unlike the dot-com bubble, nobody was making any money. Right, but you know, it's interesting. The dot-com bubble obviously harnessed the Internet to create all these companies. They didn't make any money. But at the same time, all that was created in the dot-com bubble is actually now being used by these new generation of companies, like you mentioned, to create money, to create value, and actually to provide services to customers as well. I mean, everything about the dot-com bubble that was overhyped actually happened. Not at the revenue level. So it did happen. But I think today's bubble is a real bubble and worthy of the valuations. The problem I see is when you see Quora, companies like Quora who rarely have come out of the womb in terms of a startup getting kind of valuations, kind of insane. So I think the car is going to be at that kind of entrepreneurial level where a little bit over expectations. But from your standpoint, you know, Roku is the kind of company that's pioneering new business models. And most people think of video at the living room. You guys are a pioneer in that. They think of Netflix. I'll see the poster child for this new model. You guys are right there, kicking butt. As a pioneer, you're constantly facing this valuation question. How do you address that being a new force in this new model? Well, I think that it goes back to, you know, your message about dot-com bubbles. I mean, Roku makes a piece of hardware. We sell it on the market. You know, we have competitors that are pure software plays that allow you to download that, you know, that client. But there's no transaction involved. And so we've sold over a million units, well past a million units. We passed it in 2010. You know, we look at it as, hey, look, we've created this hardware platform for content owners and content distributors to deliver and monetize their content on our platform. Companies like Netflix are very, very important to us. That's how Roku really was started as this company today. But the goal here is to build a platform for monetization of content. And we're doing it by the books. You know, we're working with the content owners. It's a real business. You guys have a real business, but you're also doing things that, quite frankly, are not conventional wisdom. So all this bubble talk about, you know, how do you compare a company like Facebook with 600 million users and growing and going on a tear in Zynga and Netflix now and you guys. I mean, the new user expectations are such that these kinds of franchises are developing. And it's real business. Yeah, and what you're seeing then is like, you know, a company like Netflix basically challenges the traditional way of gain entertainment. Blockbuster has to basically change their model to try to compete. You know, other companies like Amazon bring in a VOD service as well to compete. So I mean, you're seeing this disruption in the kind of the way that content is delivered. And that really has a lot to do with a company like Netflix who's built a amazing business. That first started with DVD delivery and now is obviously streaming with DVDs as well. I'm John Furrier. We're on the extraction point with J. Brian, Jayquit, thanks for coming on. And you're from Rukoo. So tell us about the paradigm of new media. How do you guys with all the bubble talk and the real business that you're creating, what's different about the environment right now than it was, say, you know, even seven years ago, five years ago, I mean, when companies like, you know, Tivo are out there trying to pioneer kind of a DVR concept. So much has changed. Internet access has changed. What's different now that's really enabling you guys to be a real business and to kind of sway those bubble sayers, you know, off the rhetoric. Ledge. Well, I should clarify, Rukoo actually was founded in 2002 as an audio, pictures and audio streaming type of devices had a sound bridge product and a photo bridge product early on. And it wasn't until 2008 that the Rukoo player that everyone knows today came on the market as a Netflix product. I think that what we're seeing is, you know, companies like Rukoo are taking the tact of, hey look, we can make an affordable product, but it has to be really easy to use. Anyone has to be able to install it and use it. There has to be wireless built into it so they can connect it to their network. Broadband speeds obviously are increasing dramatically. And this whole notion of streaming seven years ago was, you know, there was nothing there. Like, you know, the DVR, which our CEO Anthony Wood basically founded at Replay TV, was the way to basically download to disk and then play off a disk. Now, obviously the hype is all about streaming and that requires, you know, the cloud computing, bringing the content down, subscription services, on-demand services. You can start now inserting ads into the stream all the time to allow content owners to monetize that way as well. And so our goal here and this whole thing is basically building this platform, this really seamless platform, that allows easy entry into our ecosystem and also the ability to monetize. And I think that we've helped a lot of companies in a short amount of time start to be successful with online video. A lot of people are saying that the costs of boxies, momentum, their costs, and their stumbling, they had a little stumble. How has that affected you guys? Well, I think that, I mean, Boxie and Roku take very, very different, you know, different, basically, points of entry into this market. Boxie created a piece of software that aggregates content from all these different sources. Roku made a piece of hardware. So we're at the bat, we started selling that hardware. We make money off of that hardware. We start to build in subscription services. Boxie, I think, found that it's really difficult to create a platform for the delivery of content to the television through hardware. They are basically saying, hey, we want the Boxie user interface on a lot of different devices and we're going to basically work with D-Link and with iOmega and with these other partners that they've announced. It took a long time for them to deliver the first product, the Boxie box. And I think they went through some growing pains in that and they're obviously out now, but we kind of take the tack that, hey, look, it's good to own both the software and the hardware because it's not easy to make a really great experience with online video for the television. And, you know, I think it takes a lot of work and these other companies are finding that out right now. What do you think the content market is like right now? Obviously, we've been talking in SiliconANGLE about the Huffington Post and AOL and the whole search focus. We're going to have Rick Srenta on from Bleco on Thursday and he's going to address the whole content farm thing and they just cut a deal today with Stack Overflow. So there's a big movement towards what has become a content business for Google. And you guys are obviously in a different business when you're streaming high quality through the average Joe six-pack out there who wants good content. Has the content market gotten dumbed down and has it affected video? What's your trends forecast on video? Talk about content, good, bad, ugly? Well, I think that what we realize is that that people will pay for good content and that the services and the, you know, we call them channels on our platform that are successful are delivering great content and great value. Netflix proved with their streaming service that the back catalog was actually really compelling. People like to watch TV shows. They're willing to pay seven, eight bucks, ten bucks a month to watch, you know, movies that maybe aren't, you know, new releases. But at the same time, you know, we have Hulu Plus on our platform, which is $7.99 a month, which is day after broadcast and they just added new content from Viacom with The Daily Show and Colbert and a bunch of stuff from MTV and places like that. And so people are saying that, look, I'm going to, I'll buy the box or I'll buy this service, I'll buy this Blu-ray player. If it's got great content and I'll pay for it. I think what you're going to see is there'll be some hashing out of, you know, hey, if I'm paying a subscription service, do I need to also be watching commercials? And or, you know, at what rate am I willing to actually, you know, kind of pay for a subscription and also be able to, you know, stomach 30 seconds here, 45 seconds there. I mean, I think that the market for content is very ripe but it has to be good quality and that goes for, you know, movies and television shows as well as live sports, international content. Actually, a perfect example here is that we made available on our platform the Al Jazeera English live stream a couple weeks ago, about a week and a half ago through a video channel called, a news channel called Roku Newscaster. And it went through the charts. People just are hungry for that kind of experience and they love watching it on the television and so that was really, really great. And, you know, obviously we're getting pretty good numbers of SiliconANGLE TV and the cube operation when we go to events at Strata, we had 1.2 million views in two days, 500,000 views live and 500,000 on demand, which really shows half the views were live and half were like discovery. So there's a massive content market. People are starved for content, so that's clear. The question that comes up is, you know, search has never cracked the code on video. There's always been that, you know, search is text and Google has kind of owned that market and there's just a graveyard of dead bodies of people trying to do video search. So how do you guys address the whole discovery? Is it going to be a program guide? I saw some, everything's got this cool iTunes, Apple apps, you know, iPhone, iPad apps. Is the new control of the iPad? That's a great point. It might be. I mean, we've seen that as well. You know, there's some Roku remotes out there for iPhone and for Android. And we've been talking to another company about this iPad app that they're working on as well. I mean, the idea that you can basically search and discover on the tablet and then fling maybe the content up to the TV I think is pretty compelling for some people. I mean, that's what Steve Jobs, to a certain degree, is envisioning with AirPlay. You know, hey, find it on your iPhone or on your tablet and then throw it up to the TV. Search and discovery I think are two huge challenges and it's not only discovery within a certain, you know, content channel, it's discovery across different channels. So if I say, you know, I want to watch lost, I want to be able to easily figure out where I can watch that. Can I watch it on live linear TV? Can I watch it on demand, on Netflix? Can I watch it on Amazon video on demand? What is the usage model? And I think that that's going to continue to be challenging. We do a good job of allowing search within our content partners, but we haven't addressed search across the content partners. And so you can have like a program guide kind of thing? Yeah, I mean, I think that's the idea and I think the challenge here is just being able to basically use the landscape of the television to allow for content to bubble up and maybe, I mean, you see it within a Netflix experience already where if you rate things on the desktop experience, then it shows up within your Netflix channel on Roku, you know, movies that you might like, movies that are, you know, based on this, movies that are based on that and so you can easily navigate. It's very visual. You see big cover art on the screen. You can navigate with the, you know, the five piece remote that we offer. So I think you'll see more along those lines as well. Okay. So we're going to jump into other news today. Some other big news on the, that we got some exclusive insight on was the HP buying Vertica acquisition. And I asked HP, talked to some people off the record, talked to HP on the record. They had a few comments. They wouldn't tell us how much they paid for the acquisition, but apparently HP bought Vertica, Bilroca mass company for an undisclosed amount of money. They did say that it wasn't material from the financial standpoint to report, which means they won't tell, and it's too low. It's not a big number. But it also speaks volumes about HP. HP's analytics strategy is changing. Their new CEO is on board. He's from SAP, gets software. So this is an interesting gesture from HP and actual purchase because it forces them to execute the enterprise analytics play, which really is not about data warehousing. It's about analytics as a platform. So information management is a key market for HP. It's forced them to execute. HP considers Vertica to be a leading technology-enabled real-time business analytics. They see the acquisition of 300 customers in real-time as a key value, and obviously that's the customer. But really it forces HP to sunset their NeoView product. And they won't tell us how much they paid for it. And the big question I asked was, will they be sold through HP channels? And they said really no comment there, and that they also did not comment that they would sell an appliance. So as you know, in the Oracle market, appliances are hot. HP would be very hard-pressed not to sell an appliance. So that's that. And HP is going to be forced to deal with that. Dave Vellante, researcher at Wikibon, had some interesting comments. I'll read them here. Dave felt that the business angle was there's been a run on next-gen database companies. HP claims it is number six worldwide in the software space. This is woeful, and Leo clearly has an agenda to beef up HP software IP. The market angle for HP is a critical piece of IP that will allow them to integrate its hardware and compete with Oracle. So that's ultimately the real tech angle. It's going after the bundled IP with hardware. I think that's going to be something that's going to come from HP. And also, Vertica has also pushed databases into VMware, and that's going to be a virtualization play. So HP is going to have to figure that out, and that's kind of the enterprise news that we're close to on the cloud side is this business analytics. But the data is a hot market. Big data and information analytics is one of the hottest topics, and we've had on theCUBE and here on SiliconANGLE TV, ClickFox CEO, Marco Pacelli talking about data. Have you heard of ClickFox at all? I have not heard of it. They're a company in New York, and they basically mine the big data from all these consumer companies like Sprint and folks of huge call centers, and they basically look for DNA patterns of consumer behavior, and can show a customer experience throughout multiple dimensions and then provide that feedback. So they're the only company on the web that I've found that are actually mining data analytics and kind of developing with it versus this big old data warehouse. So the extraction point for that HP and even though it's kind of boring, it's a prize kind of stuff, is that the data warehouse model, which was once this fenced off, closed operation, now is really prime time for developers, and you're seeing the smartest developers actually leveraging the data to do that, and obviously we're at cloud era here, the home of Hadoop, we're at the home of big data, so that's a big trend, and we're watching that pretty closely. We survey and we mine data from our customer base all the time. The things that we're doing well, the things that we're not doing well, and really guides us. I mean, we're a very data hungry company and actually use that a lot in our everyday development and design of our products and our services. I think that, I mean, understanding customer data is... What do you say to the folks out there that haven't unlocked the data mining side of it? I mean, really unlocked. Everyone says, hey, we got data, but I think that the people just, they do it to kind of make themselves feel like they're maybe on the right path to something instead of actually using it, so I would urge people to actually use it. I mean, it's the best information you need to get in real time to understand the things that you need to improve on, both in the current products as well as in future products and help you guide it yourself. So I mean, I think that data is critically important in this day and age, no doubt about it. We're going to talk about a big data point out there that we're going to extract some insight into, and that is the Apple's 30% cut of subscriptions in their app store. So the Apple announced today the in-app store subscription model for magazines, newspapers, music, and videos, and their cut is going to be 30%. So the question is, will that mean higher prices and does Apple have the muscle to pull that off? Yeah, they do. They're huge. But I mean, that's big. That's pretty big. It's very big. And I think that they obviously, I think I read the release, they're taking a cue from the daily model that they just recently introduced with News Corp. And using it across different partners. I mean, it shows the breadth of their platform. Look, the reality is that they have devices across mobile and tablet and desktop that span millions and millions of customers and to be able to take a subscription service and to put it on that platform and blast it across, you're going to get instant access to millions of customers. And so I think that that's the leveraging point they are going to be taking advantage of right now. My last company, I started podcasting coming called PodTek, and we were hot and podcasting, and we were very bullish on media and business. We had iTunes was just hitting the stride. And so Apple was revolutionizing the music business which had an existing business model and their pricing set the stage for that kind of revolution. But they never monetized podcasts which put my company out of business Evan Williams' company out of business which then he did Twitter. I did Silicon Angle, some turn around he did Twitter, I did Silicon Angle. And then PodShow which was Adam and Curry. And so basically he killed it. And so the independence kind of died and all the big guys were recycling their content on podcasting. So this is really the first time that Apple from the ground up is actually going to monetize new forms of media. So the question is will it take and will people just tack on a 30% surcharge for the massive amounts of distribution. Because you know back in the day when I was doing the podcast and we were like, wow, if they charge for podcasts we could make a shitload right. So now if I got a publication, I want to compete with Rupert Murdoch and I have good content. Why not pay Apple 30% cut? It's better than making zero and going out of business, right? I think that the My angle is that those that have subscription services already have to make that decision, have to understand kind of how that is going to affect them. A new publisher of content whether they have music or they have video or what have you it's just like they made an app for the app store and charged $1.54 or $2.00 or whatever for it. To me that sounds like a no brainer. Where this has an impact is for those that already have existing subscription models that are basically in the platform already that are making applications for iOS or what have you and how they might be impacted. For anything that's new it seems like a small price to pay to get mass distribution. From our perspective, Roku, we actually have a paid apps platform that we rolled out in January on our product as well. So now, before basically you had a subscription to Netflix and then you linked your account. You had a subscription to Hulu Plus, you linked your account. You had a subscription to MLB.TV NHL Game Center, Amazon Video on Demand, you linked your account and then the billing all went through those different individuals. We actually have a way now though for publishers to publish a paid app, whether it be a subscription service or a one time fee on the Roku platform and now a Roku customer puts a credit card against their Roku account when they first buy the Roku product and then can do a one click to buy a game, a puzzle. We have 20 of these really nice videos nature videos and unbelievable videos that cost 20 bucks or something like that. And then even more importantly we have a cable channel on there now Wealth TV, it's a smaller cable channel but they charge 2.99 a month and you get the live linear television feed that you would get as if you were a Fios customer or what have you. Plus you get a full on demand library and there's a lot of 3D content. So we take a cut as well of all those transactions. You have to be in business. You have to get a little distribution fee for that, right? But for smaller publishers of content and even for some of the bigger ones the convenience of going through our platform for example rather than basically having their own platform making the customer go off to another website and subscribe and turn it on the back end it's much more convenient it's a much lower barrier to entry for less friction for the customer as well as for the publisher and I think it's a good thing. Talk about some of your distribution you guys doing pretty well any highlights you want to share with the folks out there? Well from a pure numbers perspective Any kind of inside the numbers in this period of ESPN Well we surpassed a million units sold in late 2010 which is a big milestone for us as a company but more importantly actually there's a couple stats I'd like to highlight one is that we've served over a billion streams of content so every time a movie gets streamed a TV show music etc those are streams and we're over a billion served as we say but even like more incredible is that in December we saw that Roku customers were actually using their Roku product to watch movies TV shows listen to music etc for over 11 hours per week the national average for a cable subscriber of viewing is just over 36 hours so we were accounting for over just under a third of the viewing on our platform which I think is a testament to the growing popularity of Roku and the popularity of streaming and on-demand delivery of content to the television people are using these types of devices whether it be Roku whether it be Blu-ray players connected TVs etc to consume content and that's both on-demand content as well as live content and I think that's pretty important We're here with Brian Jaquit of Roku talking about online video big day they were talking about all the extraction points in today's news I'm John Furrier with Silicon Angle talk about some of the different types of content you mentioned the different variety you have a long-tailed distribution or different variety of content from churches sessions in Florida to big pirated stuff or governments being overthrown in Egypt etc how important is local live content to you guys uptick in people facing on the live local you had some successes with things from church to local events I think local and live is going to be big in 2011 I think that news has always been one of those touch points that people are really hungry for whether it be national news but more importantly local news you're seeing that with this channel called Roku NewsCaster which is just an aggregation of video podcasts and live feeds from whether it be NBC ABC, Fox, CNN Al Jazeera English as I mentioned all aggregated in one and you can basically watch the NBC Nightly News about a couple hours after it airs nationally on the east coast on your Roku but live is really important and that's live local live events as well as live sports we have over 150 channels on our platform now and international is also a really really big piece there's a lot of Indian television we were streaming Cricket the Cricket World Cup that's coming up coming a lot of expats are basically using our product to bring that content into their living room and basically they turn it on and they let it run for hours and so they're consuming a lot of that content on a daily basis but you know the big guns that we've talked about during the course of this show Netflix and Amazon Video on Demand and Hulu Plus are very very important sports leagues like NHL and MLB.TV Ultimate Fighting Championship which is live paper view Ultimate Fighting so I think that we're seeing and as you mentioned church we have a whole category in our Roku Channel Store for spirituality a number of churches that are streaming their local Sunday services onto our platform live and then also they're complimenting that again with a full compliment of on demand content as well and I think that's the power of these types of products and these platforms and I mentioned earlier with Wealth TV you have the live linear feed complimented by a full on demand library it's something you cannot do on services and I think that's the power of the internet that's so amazing right now is you can have that kind of mix it's not your standard cable in a way it's like cable back when cable evolved except now there's no scarcity of channels so you could have cricket in your living room you could have whatever spirituality you want anytime on demand let's talk about the media block Egypt and the whole internet I was saying on Twitter this was the modern day martial law at a global scale internet being shut down government basically trying to shut down any kind of liberation via the internet you guys are a big part of having that channel up on Roku tell us some insight into how that all happened can you share just some color around it what happened what was it like, how did it feel look at the outcome it felt pretty good actually it's one of those things where you kind of looked at it and it's a power of our platform so what happened and what your role was in that one of the ways it actually happened was that we started seeing through our Twitter feeds that people were streaming Al Jazeera English through their Roku players and we were trying to figure out how they were doing it and they were doing it in a really kind of backwards way they were having to go into one of the channels that's available on our platform and actually adding this stream and then going to their computer and sign up for this account it made it really really hard but we were seeing it and so we did some investigation and then we found where they were pulling the stream from and I basically asked one of our engineers I said how easy would it be to actually get this stream and put it into one of our Roku newscaster channel which is incredibly popular and people know it and it's really easy to add and people can go in and basically start it and so sure enough about an hour later he said I've been able to extract the stream and what it is it's there you know go crazy and we then what was the timetable between you going hey you know there's some activity going on here the people were tinkering just to get the stream and to when you actually turned on the newscaster that was the night before and then we actually turned it on by midday the following day and what I thought was so fun about this was basically how fast we were able to move and how we were able to basically see this opportunity to bring information not for self-promotion it's legit it's legit movement and you weren't alone Facebook and Google guys were doing the same thing there was some kind of guys who rolled their sleeves and said hey that's the right thing to do and you saw some of the videos that minivan that ran over 21 people and there was a ton of violence and the government was trying to shut it down it was fun it was fun because it was just you were able to basically react and then we saw overwhelming support for this we put it in our newsletter and we let our fans and our customers know about it and I think that it was a blueprint for what we might be able to do in the future as well and how we might be able to react even faster maybe next time it's in the data right it's all about data mining you were basically looking at the data so time from identification was a day and a half you said identification was like a Tuesday night and then we had the channel up and going by Wednesday midday early afternoon so how does that just walk me through kind of like the play by play internally you go hmm there's some serious shit going on over there you want to keep this you want to make an impact do you call the CEO is there a board meeting was it just pretty much streamlined it was pretty streamlined you know we have a very you know Anthony Wood who's our CEO is very much a believer in this open platform you know we make our SDK available to anyone that wants to download it as long as you're respective of rights and you have rights to the content and also it's nothing that's illicit or nothing that's derogatory, hateful we basically are of the mind that will make your channel available it has to work on our platform obviously so that is that's the directive and I think that what we saw was that you know there's a few of us that basically identified an opportunity to expand our content offering in our distribution and we went after it and full support of the CEO and the other executive team that's great Brian we quit from Roku, great pioneer you guys are open culture any final comments to the folks out there around the data revolution platforms, software what are the key innovation trends that you see because you guys are kind of pioneering you know obviously moving to the living room involves connectivity there's a whole trend towards cord cutting which you know we won't get into now we can maybe do another segment on but there isn't a lot of choice consumer you know bay within the home so you guys are fighting many battles on the trend side but are there any key things that you look at go these are key mega trends that just will enable a new kind of user experience new kind of benefits similar to how you explain you know you saw some trends with the data with what was going on in Egypt and how that just kind of came together you guys really enabled some pretty massive change historic change with Egypt what trends do you see that will help average users get a better experience with the internet content etc well I think that what we're seeing is a transformation of the content and availability I mean you know there's going to be a day where basically anything that's ever been published anything you want anything that you desire to watch or listen to or consume is going to be right for the picking and I think that platforms like Roku and there are other companies obviously that I think are helping from an standpoint you know we haven't talked about Apple and Google in terms of of their forays as much into the living room but 2010 saw a huge uptake in you know just the awareness of these types of solutions and I think that companies like Google and Apple are to benefit or actually are to thank for things you know to for creating that even the on the other side that we see the success of Netflix and basically that awareness that is there for the three screens now that you've got these mobile apps you can consume on the desktop and then you can consume on the television one subscription takes you across those three mediums Roku plays a really integral part in that as well and you can see that for Hulu Plus one subscription across three different mediums MLB.TV one subscription across three different mediums NHL is the same way I think that what what you're starting to see is you're starting to see content really open up and we're we're seeing an explosion of the availability of content and companies that were not as willing to kind of test the waters with their content are now coming back and saying oh hey you know Roku or others you know okay you've got over a million people that are using this or bought this product that are using this product now Apple you've actually had a lot of success on the TV product we can start looking at different ways to distribute and diversify the distribution of our content across these platforms but the key is obviously is is can I monetize that in the right way and what's that what's that model is that model an extension of the linear experience that you're already paying for on your cable or satellite dish is that model and all a card experience you know what's the model for distribution and I think that that you're going to see a few different forays into that in 2011 and I'm John Furrier, Brian Peckquot the uh... jquit I'm sorry from Roku that's the extraction point we're talking about mobile we're talking about the internet bubble new brands and mega brands are emerging we're talking about mobile world congress and that's a wrap for today thanks Brian for giving us the insight into the trends in your company and you know as a pioneer congratulations on all your success and great to hear the story about Egypt and you guys have done thank you