>> Rishi Chandra: So to talk a little bit
more about our partnerships as well as the
overall Google TV mission, I'd like to introduce
Eric Schmidt, CEO of Google.
[ Applause ]
>>Eric Schmidt: Thank you.
Thank you.
Thank you, Rishi.
Thank you, Vincent.
20 years ago, I sat in the equivalent of this
room, and people talked about the notion of
getting your television guide integrated with
the television.
Ten years ago, WebTV and other companies of
its kind said, "Maybe we should find a way
to integrate the way you communicate and the
way you use the Web onto your television."
We've been waiting a long, long time for today.
It took a lot to make this happen.
Let's start with what it took.
It took the Internet, it took extraordinarily
fast CPUs, DSPs, a whole new architecture
around software, the winning of open source,
and all of the platforms that you've seen.
It's much harder to marry a 50-year-old technology
and a brand-new technology than those of us
from the brand-new technology area thought.
Of the things that we did and that you saw
in the demo, you saw the full potential of
cloud computing.
You saw the ability to actually go from the
server to the client, in this case, the television,
and you could even program it, and program
it using the powerful tools that we all use
every day.
There was one other thing that we needed,
and it turned out to be fundamental.
We needed a whole ecosystem of partners.
What I'd like to do is to bring the CEOs of
some significant partners that made this happen
on stage right now.
First, Paul Otellini, CEO of Intel.
[ Applause ]
>>Eric Schmidt: Thank you very much, Paul.
You want to go ahead and have a seat.
Sir Howard Stringer, CEO of Sony.
[ Applause ]
>>Eric Schmidt: Thank you very much, Howard.
Serious crowd.
They're engineers, Howard.
They're our customers.
Jerry Quindlen, Logitech.
[ Applause ]
>>Eric Schmidt: Charles Ergen is the CEO of
the DISH Network.
[ Applause ]
>>Eric Schmidt: Hi, Charlie.
Nice to see you.
And Brian Dunn, the CEO of Best Buy.
Thank you.
And Shantanu Narayen, the most interestingly
controversial person in the last few weeks,
certainly involving Flash, the CEO of Adobe.
[ Applause ]
>>Eric Schmidt: Thank you.
What I thought I would -- what I thought I
would do is ask a few questions of everybody,
and we sort of run over -- I think it was
just a phenomenal, phenomenal set of demos
and announcements.
Paul, you and I have talked a lot about the
future of Intel, the things that you're doing,
the Atom processor turns out to be really,
really key in all of this.
What is it that the Atom processor actually
is doing here?
Why is it so special?
Why is it not just a generic Intel processor?
>>Paul Otellini: Well, there's two things
about this chip that are inside the TVs and
the boxes that you described.
One is that it is a version of Atom.
So we bring the full processing capability
of Intel that you expect, the software compatibility,
the Web compatibility is all there.
But the performance of a -- today's netbook,
notebook kind of products.
But we put around the Atom a bunch of specialized
circuitry for these devices that are the things
that are expected in high-performance consumer
electronics, HD video, encoding, decoding,
very high-performance graphics and so forth.
The combination of the two gives you the ability
to have that Internet experience, but also
the CE experience.
>>Eric Schmidt: Did -- When you all built
the Atom processor, was this the use that
you intended?
Was it a broader video platform that you foresaw?
>>Paul Otellini: It was one of the uses.
We have 2,000 applications around Atom today
their popping up, from televisions to smartphones
to smart cars.
The microprocessor, Eric -- our view of the
microprocessor is, it's a transformational
technology.
It makes the things it goes into smarter.
And when you combine that with -- that capability
with the Internet and wonderful software,
you get new capabilities that are -- that
will change the industries in ways that we
haven't seen before.
>>Eric Schmidt: So in this sense, it's an
extension of the Intel platform strategy.
>>Paul Otellini: Absolutely.
>>Eric Schmidt: At a fundamental level.
Shantanu, we've had a lot of fun in the press.
You've been on the other side of an awful
lot of stuff.
Flash, roughly, is used by 100% of the Web,
but might be 99.97%.
So why is Flash so important to this?
What is Flash going to be used for in this
new platform?
Why are we fighting for Flash?
>>Shantanu Narayen: Eric, first, I think it's
tremendously exciting announcements here.
Thanks for having us.
I think it really is all about engaging experiences
on the Web.
And as was discussed, really, the convergence
of getting that content and applications to
any device that people wish to consume those
content and applications on, whether it's
a smartphone on Android, whether it's TV,
or whether it's a PC.
And as far as we're concerned, this is really
about trying to create family Harmony.
So if Rishi's family can get Elmo when they
want and the NBA when they want, it's all
in Flash.
And it works as advertised across all of these
different devices.
I think for all of the content creators here,
we'd love to give them an opportunity to be
able to express their creativity and get it
across all of the set of devices.
>>Eric Schmidt: What is it that's special
about Flash in this platform?
There's clearly hardware acceleration.
Is there something that Flash does special
here that makes this more interactive, zippier?
You know, what's the technical thing that
happens as a result of why you're using Flash?
>>Shantanu Narayen: We're working on 10.1.
>>Eric Schmidt: Flash.
>>Shantanu Narayen: We announced today we
are going to have a public beta on Android.
What we had to do, really, was take into account
some of the key issues to get it to really
sing on these devices, so things like battery
life, things like performance, and really
getting the entire power of the Web, whether
it's high-definition video, or whether it's
casual gaming, where you know most of the
casual gaming on the Web is on Flash on your
particular platform.
So it's been a ton of work with Sony and with
Google to really make sure that it's optimized
for the respective platforms.
>>Eric Schmidt: So how -- so, Sir Howard,
when you think about Sony and you think about
-- to me, Sony is television.
So --
>>Sir Howard Stringer: God bless you.
>>Eric Schmidt: So are people going to go
out and buy new televisions because of this?
What is, in fact, the state of the television
industry, the breadth of this, from my perspective,
now having seen the full demo, including some
Bluetooth issues, it's much broader than I
thought, because it's maybe possible that
people will spend as much time or more watching
something other than television on their televisions.
>>Sir Howard Stringer: Yeah, I think it is thrilling.
And I agree with you.
I mean, I was watching the demonstrations
here today, which were -- which showed what
can be accomplished.
I mean, it was stressful with all -- everybody's
Bluetooth on and phones on and so forth.
So it was a fairly stressful experience.
But when you put all of this, as we've done
for the full, into the world's first Internet
television, all of that will be simplified
and made seamless so that the opportunities
that you demonstrated are just mind-boggling.
It's essentially evolving all the time.
It's upgradable all the time.
The more you found out -- you find out about
the Internet, the more entertainment you find
for yourself, not just existing content, but
reality content, what you can do with each
other, your families, and so forth, the good
and the bad and the ugly.
And all of this is plausible on this feature.
And when we launch it in the fall with everything
--
>>Eric Schmidt: Did I just hear that?"
When we launch this in the fall"?
>>Sir Howard Stringer: Fall.
That will be this year.
>>Eric Schmidt: This year.
[ Applause ]
>>Eric Schmidt: Which, by the way, might be
for the Christmas buying season?
>>Sir Howard Stringer: Pardon?
That's why we're being very kissy to Best
Buy at the moment.
[ Laughter ]
>>Brian Dunn: We appreciate the love, Howard,
we really do.
>>Sir Howard Stringer: May it be returned.
>>Brian Dunn: Indeed.
>>Eric Schmidt: So, you know, Sony is --
and we -- at Google, we always use Sony as
sort of the definition of an innovative company,
just one interesting idea after another, sometimes
hugely successful, sometimes not as successful.
But a passion of innovation that started from,
literally, the founding of the firm.
Do you foresee using this kind of a platform
more broadly?
How will you in fact take Sony forward with
some of this new technology that you've seen?
And not just the Google TV, but the integration
with all the devices and things like that?
You already did, for example, the Sony Ericsson
product.
We talked about that.
>>Sir Howard Stringer: I wanted to plug Sony Ericsson
after that HTC wonderful plug you gave.
Sony Ericsson phone is not available in the
United States yet in great numbers.
But it is already, thanks to your platform,
dominating Japan.
It is --
>>Eric Schmidt: We never use the word "dominate,"
Howard.
It is the most successful in Japan.
[ Laughter ]
>>Eric Schmidt: Significant market share.
>>Sir Howard Stringer: When you beat Apple, you
-- it's a new definition.
>>Eric Schmidt: You guys will get your turn.
Trust me.
>>Sir Howard Stringer: No.
This is a wonderful relationship that we expect
to expand into other hardware and beyond.
We are fairly giddy with excitement at this
new relationship.
You're a partner with whom we have no fear.
>>Eric Schmidt: With whom you have no fear.
>>Sir Howard Stringer: That's fairly unusual in
our business.
>>Eric Schmidt: Jerry, so for the people who
are not going to run out to Best Buy and buy
a brand-new Sony television or whatever it
is Howard is up to with these guys, what was
interesting in reading about Logitech, you
guys are the largest manufacturers of remotes,
among other things?
I think of Logitech as my keyboard, my mouse.
You're a much bigger ecosystem than I had
thought.
>>Gerald Quindlen: Yeah, I think it's probably
a safe bet that everyone in the room still
probably knows us best for these kind of products,
keyboards, mice, webcams.
But we've actually been innovating in the
living room for several years now, in a lot
of products and in a lot of areas, but most
notably through our lines of remote controls
called Harmony, which I think probably --
there you go.
Thank you.
>>Eric Schmidt: We have some customers in
the room.
[ Applause ]
>>Gerald Quindlen: And we have been very successful.
But, you know, we felt that the biggest opportunity
in the living room, as excited as we are about
how well we've done with Harmony, we have
felt for a long time the biggest opportunity
in the living room is really what Rishi was
talking about, which is, it's this combination
of TV content and the Web and bringing it
all together in a seamless, open platform.
That's why we're so excited about Google TV.
Obviously, what we're looking at, frankly,
Eric, is the opportunity to do what we've
done successfully for 25 years around the
PC, which is create a whole new ecosystem
of peripherals around Google TV.
>>Eric Schmidt: Do -- Now, you're going to
ship this box; right?
>>Gerald Quindlen: Right.
>>Eric Schmidt: What will I do with the box?
Tell me -- I want this now, as you know.
We had this conversation.
What do I do with the box?
I just plug it?
>>Gerald Quindlen: Yeah.
I mean, so we will be providing -- as was
called out earlier by Rishi -- a companion
box.
And with that companion box, you will get
a controller.
And the controller integrates a keyboard
--
>>Eric Schmidt: Is this a controller that's
going to work better than the one we used
today?
>>Gerald Quindlen: Yeah.
>>Eric Schmidt: I hope so.
>>Gerald Quindlen: You get a controller with
a keyboard and it has remote control capabilities
basically integrated into it.
We will ship that in the fall, as Sir Howard
--
>>Eric Schmidt: Which year?
>>Gerald Quindlen: This year.
>>Eric Schmidt: This year.
>>Gerald Quindlen: In time for Christmas.
>>Eric Schmidt: Just getting it on record.
>>Gerald Quindlen: But what you will need
to do, we've made it very simple.
Basically, if you're one of the 60 million
HD TV households in the U.S., you are a target
for this product.
Basically, all you need is an HDMI input.
And it's pretty easy to set up and get going.
>>Eric Schmidt: I'm going to come to Christmas
at the end with Best Buy.
Let's ask Charlie, you've -- I think you've
been in this industry, the video distribution
satellite industry for 25 or 30 years?
>>Charles Ergen: It will be 30 years.
>>Eric Schmidt: 30 years.
You're the fastest-growing satellite network
in the United States right now.
>>Charles Ergen: Actually the fastest pay
TV provider in the United States, that includes
all cable, phone companies, and satellite.
>>Eric Schmidt: Wow.
Congratulations.
[ Applause ]
>>Eric Schmidt: So, to some degree, you represent
both the traditional structure, as well as
this new structure.
How will this technology -- how will these
devices and so forth, how will they change
the viewing experience?
How will they change your business?
You've obviously bet big-time on this.
You must believe that it's going to be a big
phenomena, right, for your subscribers.
Presumably, you'll continue your even higher
growth rate as a result.
Tell me how it plays out for you.
>>Charles Ergen: Well, we think it's going
to grow our business, and we think it opens
opportunity.
We always felt that good business is giving
-- giving our customers what they want or
what they may not know they want, but we believe
they want and kind of get ahead of it.
So we already know our customers watch TV,
and then they go to another room, to their
study or their office or somewhere else in
the house and they watch stuff on the computer.
So we know that they wanted to combine those
two things in a seamless way.
So one of the things we've been -- we've been
thinking about this for about ten years.
We started with WebTV, which ultimately was
bought by Microsoft and built the first DVR
and a Web experience that was a dialup.
So it was just ahead of its time.
When Google.
>>Eric Schmidt: But in many ways, I think
it showed the path.
>>Charles Ergen: It kind of showed the path.
When we started working with Google about
three years on advertising and viewer measurement,
as you guys started looking at Google TV over
the last couple of years, we were happy to
get involved in the process pretty early on
so that that seamless experience is going
to be more seamless with DISH Network than
with any other video provider.
So that means your DVR is going to function
in a more seamless way, you're not going to
have -- it's going to be a much easier process
so that you don't know when you switch from
the Web to linear TV.
People are still going to watch the world
series or the Super Bowl or a 3D movie.
They're still going to watch that from satellite.
But when they want something more specific,
they're clearly going to want to be able to
do the Web.
So we're just going to integrate that into
a better product.
If we build a better product, hopefully, good
things happen.
>>Eric Schmidt: It's interesting that one
of the things that your company and ours did
was focus on the analytics of television,
which had not really been explored before.
And this strikes me as an analytical platform
at a whole new level in terms of measurement,
accountability, advertising.
Do you see that?
How do you -- what are some of the things
that you've learned in running an analytical
television business as opposed to just the
traditional ones?
>>Charles Ergen: I think the Analytics do
two things for us.
One is it allows us to give a better product
to our customer so we can make recommendations,
right.
So you watch a Jimmy Stewart western movie
and maybe we'll put up a Glenn Ford movie
because we know those two go together.
The second thing we know is, from an advertiser
point of view, who are also all of our customers,
they want to reach customers out there, that
we can give them a better path where they
actually get a return on their investment
and we can show them they get a return on
their investment to reach customers, that's
going to be better for customers, because
I'm not going to watch a diaper ad, I'm going
to watch a Lexus ad that might be for appealing
to me, or whatever.
So I think all of those things go hand in
hand.
And I think it's important that at DISH Network,
we want to work with everybody in this room.
Many of the applications we saw here today,
there's no question they're going to be hugely
popular applications.
But I would predict that this room out there,
people out there will invent new applications
that will be even superior to what we saw
today.
And we're going to make sure that you can
work with DISH Network so you can do that
in a more seamless way.
>>Eric Schmidt: Which is in fact why we're
announcing all of this now.
So, Brian, what I particularly like about
you all is that you are the surviving and
strongest and growing national retailer in
the things that every single person in this
audience cares about.
Literally, every single person here is a huge
customer.
Right?
When you think about the -- and as I understand
your industry, the profits really do come
at Christmas; right?
The -- it really is a relate business in the
--
>>Brian Dunn: It is certainly disproportionate.
>>Eric Schmidt: -- in sort of the most brutal
kind of way.
And these businesses are often mature now.
So do you see -- How do you see this playing
out?
Do you see this driving new traffic?
Do you see this setting a new price point?
It's a whole ecosystem.
It's more than -- it's more than a spot on
your -- on your aisle.
It's really sort of a whole new aisle, if
you will.
>>Brian Dunn: A couple things.
One, Eric, we share your enthusiasm for the
fact that we're a survivor.
We feel really great about that.
That's one.
Two, we have a saying inside Best Buy that
this is the most important holiday Christmas-selling
season in the history of the company, and
it's true every single year.
What we're really enthusiastic about with
what we've seen with Google TV and what we
think it means, is, you're right, it's not
just a new aisle, we think of it as an entirely
new category, the smart TV, which we think,
when properly demonstrated and properly explained
to customers, is going to solve real challenges
they face today.
Let me give you an example of what happens.
And I think this is absolutely how people
are living today.
So you're sitting in your family room or your
home theater, or wherever it is you watch
and sitting with the people you care about
and watching a basketball game.
Invariably, in my house, anyway, I'm sitting
there with my laptop, my sons have their laptops,
and we're arguing the age-old question, Kobe
versus LaBron, and we're having a spirited
debate and everybody is pulling up the facts.
This is really the first seamless experience
I have seen that actually allows the source
to be absolutely agnostic behind the television,
and you're able to pull up the things you
care about real-time, and I think it is absolutely
compelling, and I think there's going to be
an enormous consumer appetite to do this.
And, again, I think it opens up an entirely
new category.
And from a Best Buy perspective, we're pretty
excited.
We have 180,000 blue shirts out there that
are pretty fired up about this new category.
And we've got 20,000 geeks in case everything
doesn't work perfectly, as we know, even with
the greatest technology in the world, it doesn't
always work seamlessly.
>>Eric Schmidt: Again, one of the reasons
why you all have done so well is because of
what you call the blue shirts and the service
quality is phenomenal in the stores.
My sense in watching this is that it will
be such a new idea for people that you're
going to have to actually demonstrate it to
them.
You have to actually see it to get excited
about it.
>>Brian Dunn: You do.
In fact, I was fortunate enough to get an
in-depth demo last Friday.
And when it is explained to you and you actually
see what it is you can do and experience it,
it's compelling.
In fact, I need one.
And it is a reoccurring theme.
Right now, Howard, I need one.
We have to talk about that.
But I do think it is going to be broadly accepted.
Because it does address how people are in
an ad hoc fashion enjoying and consuming media
right now.
>>Sir Howard Stringer: Yeah.
You hit the nail on the head, because we haven't
talked about third-party developers and so
forth.
I mean, the opportunity to expand this universe
above and beyond, I mean, it's -- it's evolutionary,
because it will continue to evolve.
And it's upgradable.
So you think of it in a whole new way.
It's active television.
It's not only interactive, it's pro active
as it grows and grows and grows and creates
opportunities for people in America and ultimately
all over the world.
It really is a very big deal.
I can't stress that enough.
>>Brian Dunn: And it is utterly -- you can
personalize it, make it your experience in
a way that I think is going to be very, very
compelling.
>>Eric Schmidt: I'm getting the hook from
Vic.
We're having such a good time.
>>Sir Howard Stringer: He had a long time on the
stage.
>>Eric Schmidt: The reason we wanted to do
this announcement here and with all of our
partners is that we need you to take this
platform and build extraordinary things that
we have not yet conceived of.
We now have the tools.
We have the volume.
We have the economics.
And we have the scale.
All we need now are your ideas, your precious
time to build this set of applications I think
to really not just define television in a
new way, but ultimately, to define how people
entertain themselves and learn in what has
historically been a medium that never, ever
changed.
This is a very, very exciting, from my perspective,
beginning.
And I want to thank everybody for spending
so much time here, the commitments from your
companies, and all of the work you guys are
going to do with all of us to make this happen.
So thank you, all.
[ Applause ]