1 00:00:06,542 --> 00:00:08,333 - In the '90s, we're gonna revolutionize 2 00:00:08,417 --> 00:00:10,500 human communication using these desktop computers. 3 00:00:10,583 --> 00:00:11,833 - You've got mail. 4 00:00:11,917 --> 00:00:13,583 - What is the World Wide Web? 5 00:00:13,667 --> 00:00:15,500 - In the world of computers, 6 00:00:15,583 --> 00:00:17,333 it's kill or be killed. 7 00:00:17,417 --> 00:00:19,375 - Please welcome Bill Gates! 8 00:00:19,458 --> 00:00:21,375 - Do you agree or disagree that you have a monopoly? 9 00:00:21,458 --> 00:00:24,000 all: ♪ Check out Windows 95 ♪ 10 00:00:24,083 --> 00:00:26,125 - This is iMac. 11 00:00:26,208 --> 00:00:27,875 - It's a technological revolution 12 00:00:27,958 --> 00:00:29,667 that's changing the way we do everything, 13 00:00:29,750 --> 00:00:31,958 from making friends to falling in love. 14 00:00:32,042 --> 00:00:33,583 - When the new millennium arrives, 15 00:00:33,667 --> 00:00:35,833 so will a technological tidal wave. 16 00:00:35,917 --> 00:00:37,917 all: Three! Two! One! 17 00:00:38,000 --> 00:00:40,917 [dramatic music] 18 00:00:41,000 --> 00:00:48,167 ♪ ♪ 19 00:01:29,917 --> 00:01:32,458 - So, you've just bought your first personal computer. 20 00:01:32,542 --> 00:01:34,125 You've brought it home from the store, 21 00:01:34,208 --> 00:01:36,000 you're unpacking it, and then comes 22 00:01:36,083 --> 00:01:37,625 the moment of truth. 23 00:01:37,708 --> 00:01:40,083 If you've just bought your first personal computer, 24 00:01:40,167 --> 00:01:41,833 this show is for you. 25 00:01:41,917 --> 00:01:44,833 - Computers were, in 1990, a disconnected device. 26 00:01:44,917 --> 00:01:46,542 It was a brick, right, 27 00:01:46,625 --> 00:01:48,708 that sat in your house and let you do amazing things 28 00:01:48,792 --> 00:01:50,708 that you'd never been able to do before, 29 00:01:50,792 --> 00:01:53,458 but it was essentially a productivity tool. 30 00:01:53,542 --> 00:01:56,375 - Now that we have all these very powerful tools, 31 00:01:56,458 --> 00:01:57,875 we're still islands. 32 00:01:57,958 --> 00:02:00,167 And we're still not really connecting 33 00:02:00,250 --> 00:02:02,583 these people using these powerful tools together. 34 00:02:02,667 --> 00:02:04,917 - Apple was in a period of decline. 35 00:02:05,000 --> 00:02:07,875 Steve Jobs quit in kind of a temper tantrum 36 00:02:07,958 --> 00:02:09,708 in 1985. 37 00:02:09,792 --> 00:02:12,333 And he went off and started a company called NeXT. 38 00:02:12,417 --> 00:02:15,000 After he left, there was a sequence 39 00:02:15,083 --> 00:02:20,292 of pretty boring, unimaginative corporate leadership 40 00:02:20,375 --> 00:02:21,667 that followed him. 41 00:02:21,750 --> 00:02:23,125 - So, why did you leave Apple? 42 00:02:23,208 --> 00:02:24,542 - Well, why did I leave Apple? 43 00:02:24,625 --> 00:02:26,083 Oh, I was asked to leave. 44 00:02:26,167 --> 00:02:28,000 Yeah, I was asked to leave Apple. 45 00:02:28,083 --> 00:02:30,042 I was planning on spending the rest of my life there, 46 00:02:30,125 --> 00:02:31,375 but it didn't work out that way. 47 00:02:31,458 --> 00:02:34,292 - Steve Jobs was a genius, 48 00:02:34,375 --> 00:02:36,708 but one of the reasons he got moved out of his job 49 00:02:36,792 --> 00:02:40,083 was because he was spending huge amounts of money 50 00:02:40,167 --> 00:02:41,875 on projects that, for the most part, 51 00:02:41,958 --> 00:02:44,167 never reached the market. 52 00:02:44,250 --> 00:02:47,708 And Apple had a crisis of confidence. 53 00:02:47,792 --> 00:02:49,792 - At a time when major computer corporations 54 00:02:49,875 --> 00:02:52,250 like Apple are laying off 10% of their workforce, 55 00:02:52,333 --> 00:02:55,458 Microsoft is the big exception in the computer industry. 56 00:02:55,542 --> 00:02:57,833 - People didn't get how much value there was 57 00:02:57,917 --> 00:02:59,708 to be derived from software. 58 00:02:59,792 --> 00:03:01,625 That the operating system could be the most valuable 59 00:03:01,708 --> 00:03:04,125 piece of real estate in the whole computing business 60 00:03:04,208 --> 00:03:05,917 was something not understood by almost anybody 61 00:03:06,000 --> 00:03:08,042 in the computer industry, apart from Bill Gates. 62 00:03:08,125 --> 00:03:11,167 [techno music] 63 00:03:11,250 --> 00:03:13,958 ♪ ♪ 64 00:03:14,042 --> 00:03:16,875 [cheers and applause] 65 00:03:19,000 --> 00:03:22,958 - Today, we're introducing Microsoft Windows version 3. 66 00:03:23,042 --> 00:03:25,167 [cheers and applause] 67 00:03:25,250 --> 00:03:27,875 - Bill Gates: part Thomas Edison, 68 00:03:27,958 --> 00:03:29,792 part Henry Ford, 69 00:03:29,875 --> 00:03:32,583 part Holden Caulfield Catcher in the Rye. 70 00:03:32,667 --> 00:03:34,625 At 19, he dropped out of Harvard 71 00:03:34,708 --> 00:03:37,375 to design computer software with his friend, Paul Allen. 72 00:03:37,458 --> 00:03:39,208 They came up with a system 73 00:03:39,292 --> 00:03:42,333 that operates 90% of the personal computers today. 74 00:03:42,417 --> 00:03:44,500 - Microsoft was making a lot of money then. 75 00:03:44,583 --> 00:03:47,833 They were charging $200, $300, $400 76 00:03:47,917 --> 00:03:50,292 for, say, a word-processing package 77 00:03:50,375 --> 00:03:53,125 that really was costing them about 50 cents 78 00:03:53,208 --> 00:03:54,875 to print on floppies. 79 00:03:54,958 --> 00:03:57,583 - Hardworking, modest, easygoing, 80 00:03:57,667 --> 00:03:59,250 it would seem, to a fault. 81 00:03:59,333 --> 00:04:02,625 Of course, he does have at least one secret. 82 00:04:02,708 --> 00:04:04,208 But we'll fix that. 83 00:04:04,292 --> 00:04:05,792 Is it true that you can leave over a chair 84 00:04:05,875 --> 00:04:07,333 from a standing position? 85 00:04:07,417 --> 00:04:09,042 - It depends on the size of the chair, 86 00:04:09,125 --> 00:04:11,417 but this chair, probably so. 87 00:04:13,042 --> 00:04:14,625 - [laughs] Yes! - [laughing] 88 00:04:14,708 --> 00:04:17,250 - [laughing] That was... - I-I took a step 89 00:04:17,333 --> 00:04:19,500 before I did it. - That's okay. 90 00:04:19,583 --> 00:04:21,583 - Bill Gates wasn't just one thing. 91 00:04:21,667 --> 00:04:24,083 He was a brilliant guy, had great parents, 92 00:04:24,167 --> 00:04:26,542 family values, but he was a killer. 93 00:04:26,625 --> 00:04:31,167 He basically was a ruthless guy, and so was Microsoft. 94 00:04:31,250 --> 00:04:33,625 - No, no, no, no, somebody's confused. 95 00:04:33,708 --> 00:04:35,000 Somebody's just not thinking. - Well... 96 00:04:35,083 --> 00:04:36,125 - I mean, there's no way... 97 00:04:36,208 --> 00:04:37,250 - We'll figure it out. 98 00:04:37,333 --> 00:04:38,792 - You guys never understood! 99 00:04:38,875 --> 00:04:41,708 You never understood the first thing about this. 100 00:04:41,792 --> 00:04:43,792 - A lot of people make the analogy 101 00:04:43,875 --> 00:04:46,167 that competing with Bill Gates 102 00:04:46,250 --> 00:04:48,458 is like playing hardball. 103 00:04:48,542 --> 00:04:50,833 I'd say it's more like a knife fight. 104 00:04:50,917 --> 00:04:52,708 - I've never heard any of these things. 105 00:04:52,792 --> 00:04:55,000 You know, you're saying, like, "knife fight." 106 00:04:55,083 --> 00:04:57,500 That's silliness. It's childish. 107 00:04:57,583 --> 00:05:03,042 I mean, why be a mouthpiece for that kind of silliness? 108 00:05:03,125 --> 00:05:05,167 Well, I'm done. 109 00:05:05,250 --> 00:05:07,333 - Um...can I just ask you 110 00:05:07,417 --> 00:05:09,875 one more question, Bill? 111 00:05:09,958 --> 00:05:11,667 - No, I don't think so. 112 00:05:11,750 --> 00:05:13,833 - Um... 113 00:05:13,917 --> 00:05:15,833 - I remember one time interviewing Gates, 114 00:05:15,917 --> 00:05:18,125 and I said, "Microsoft owns the world right now. 115 00:05:18,208 --> 00:05:19,792 Do you worry about that at all?" 116 00:05:19,875 --> 00:05:21,917 He said, "I worry about it every single night." 117 00:05:22,000 --> 00:05:25,083 I go to bed thinking, "What have I not thought about?" 118 00:05:25,167 --> 00:05:26,833 - Personal computer... 119 00:05:26,917 --> 00:05:28,625 [dial-up modem beeping] 120 00:05:28,708 --> 00:05:30,125 - Now it's starting to dial. 121 00:05:30,208 --> 00:05:31,583 [modem dialing] 122 00:05:31,667 --> 00:05:33,042 [modem beeping] 123 00:05:33,125 --> 00:05:34,458 And now I am in. 124 00:05:34,542 --> 00:05:36,125 [exciting music] 125 00:05:36,208 --> 00:05:39,042 - It spans the globe like a super-highway. 126 00:05:39,125 --> 00:05:41,083 It is called Internet, the Net. 127 00:05:41,167 --> 00:05:45,333 Began back in 1969, it was a tool of the Pentagon. 128 00:05:45,417 --> 00:05:47,083 But nowadays, just about anyone 129 00:05:47,167 --> 00:05:49,583 with a computer and a modem can join in. 130 00:05:49,667 --> 00:05:52,292 - The Internet was a really dorky, 131 00:05:52,375 --> 00:05:54,583 hard-to-use, and extremely nerdy thing. 132 00:05:54,667 --> 00:05:56,542 None of your friends would've been on this. 133 00:05:56,625 --> 00:05:58,792 Just fellow people in tech. 134 00:05:58,875 --> 00:06:01,333 - The Internet, really, was not a huge factor 135 00:06:01,417 --> 00:06:02,958 in the early '90s, 136 00:06:03,042 --> 00:06:04,750 but Netscape changed things. 137 00:06:04,833 --> 00:06:07,042 - They're calling him the next Bill Gates: 138 00:06:07,125 --> 00:06:08,875 24-year-old Marc Andreessen. 139 00:06:08,958 --> 00:06:10,625 15 months ago, Andreessen, 140 00:06:10,708 --> 00:06:12,708 fresh out of the University of Illinois, 141 00:06:12,792 --> 00:06:14,917 helped start a company called Netscape. 142 00:06:15,000 --> 00:06:18,042 At 11:00 a.m. this morning, the company's stock went public 143 00:06:18,125 --> 00:06:20,667 and Wall Street went bonkers. 144 00:06:20,750 --> 00:06:22,375 So, what does Netscape produce 145 00:06:22,458 --> 00:06:25,583 that now makes the company worth $2.9 billion? 146 00:06:25,667 --> 00:06:29,000 This, the Netscape Navigator, software which makes it easy 147 00:06:29,083 --> 00:06:31,417 for people to connect to the global computer network 148 00:06:31,500 --> 00:06:33,500 called the Internet. 149 00:06:33,583 --> 00:06:37,083 - Microsoft has a long history of feeling threatened 150 00:06:37,167 --> 00:06:38,417 by hot, new upstarts. 151 00:06:38,500 --> 00:06:40,875 You could easily argue that 152 00:06:40,958 --> 00:06:44,667 Bill Gates' game plan was world domination. 153 00:06:44,750 --> 00:06:47,625 - These guys can be taken! 154 00:06:47,708 --> 00:06:49,750 But the only way we're gonna take them 155 00:06:49,833 --> 00:06:52,625 is by studying them. Know what they know. 156 00:06:52,708 --> 00:06:55,417 Do what they do. Watch 'em, watch 'em, watch 'em. 157 00:06:55,500 --> 00:06:57,250 Take every one of their good ideas 158 00:06:57,333 --> 00:06:59,333 and make it one of our good ideas. 159 00:06:59,417 --> 00:07:02,083 - Microsoft came down and essentially said to Netscape, 160 00:07:02,167 --> 00:07:04,417 "Hey, you know, we can be friends, 161 00:07:04,500 --> 00:07:05,958 "or we can be enemies. 162 00:07:06,042 --> 00:07:08,000 "And if we're gonna be friends, that's great. 163 00:07:08,083 --> 00:07:10,250 "You'll get all the advantages of working with Microsoft 164 00:07:10,333 --> 00:07:12,125 "in a million ways, and you'll be on the home screen 165 00:07:12,208 --> 00:07:13,917 "of a lot of computers. Or we can compete, 166 00:07:14,000 --> 00:07:15,750 "and if we're gonna compete, we're gonna basically 167 00:07:15,833 --> 00:07:17,542 do whatever's required to kill you." 168 00:07:17,625 --> 00:07:19,000 - Some people believe that you have 169 00:07:19,083 --> 00:07:20,583 an infinite appetite for power, 170 00:07:20,667 --> 00:07:22,292 that you are the embodiment 171 00:07:22,375 --> 00:07:23,917 of a button that was around during the 1980s 172 00:07:24,000 --> 00:07:25,375 that said, "I want it all," 173 00:07:25,458 --> 00:07:27,792 and you wanna eat up your competitors. 174 00:07:27,875 --> 00:07:29,958 Is that unfair? 175 00:07:31,083 --> 00:07:32,458 - It... [laughs] 176 00:07:32,542 --> 00:07:34,875 Doesn't ring any bells with me. 177 00:07:40,792 --> 00:07:43,208 [dramatic music] 178 00:07:43,292 --> 00:07:44,750 - The first day back. 179 00:07:44,833 --> 00:07:46,125 - How's it feel? How's your back? 180 00:07:46,208 --> 00:07:47,917 - What do President Clinton, 181 00:07:48,000 --> 00:07:50,000 conservative radio personality Rush Limbaugh, 182 00:07:50,083 --> 00:07:53,583 and rock star Billy Idol have in common? 183 00:07:53,667 --> 00:07:55,625 They've all got electronic mail addresses 184 00:07:55,708 --> 00:07:58,125 on computer systems linked to the Internet. 185 00:07:58,208 --> 00:07:59,792 - Who are these other people that are on it? 186 00:07:59,875 --> 00:08:01,708 - Other people just like you who bought-- 187 00:08:01,792 --> 00:08:03,583 - But how did they get on it? Who regulates this Internet 188 00:08:03,667 --> 00:08:06,042 and who decides who gets on this highway 189 00:08:06,125 --> 00:08:07,667 and who doesn't? - Well, the services 190 00:08:07,750 --> 00:08:09,333 we're talking about today are commercial services. 191 00:08:09,417 --> 00:08:11,333 So you spend money to get on there. 192 00:08:11,417 --> 00:08:13,583 So there's no real regulation per se. 193 00:08:13,667 --> 00:08:15,583 You use your phone line and your computer, 194 00:08:15,667 --> 00:08:17,292 and you get online. 195 00:08:17,375 --> 00:08:19,750 - CompuServe was for the tech-savvy people, 196 00:08:19,833 --> 00:08:21,542 Prodigy was for shopping, 197 00:08:21,625 --> 00:08:23,542 and AOL was the first one that had a vision 198 00:08:23,625 --> 00:08:24,833 to get everyone connected. 199 00:08:24,917 --> 00:08:26,458 [modem dialing] 200 00:08:26,542 --> 00:08:29,958 [modem beeping and whirring] 201 00:08:30,042 --> 00:08:31,833 - When I heard that sound, I cried a little bit 202 00:08:31,917 --> 00:08:34,417 because I knew there was a big adventure waiting for me. 203 00:08:34,500 --> 00:08:36,417 [modem hissing] 204 00:08:36,500 --> 00:08:38,667 - Welcome. You've got mail. 205 00:08:38,750 --> 00:08:40,458 - CompuServe charged by the minute, 206 00:08:40,542 --> 00:08:42,083 so it was like a taxicab. 207 00:08:42,167 --> 00:08:44,583 AOL's invention was to forget that 208 00:08:44,667 --> 00:08:46,917 and charge $19.95 a month, all-you-can-eat. 209 00:08:47,000 --> 00:08:48,833 And that changed everything, 'cause now you could afford 210 00:08:48,917 --> 00:08:50,583 to be on the Internet all you wanted. 211 00:08:50,667 --> 00:08:52,792 - You didn't have to be a researcher. 212 00:08:52,875 --> 00:08:54,500 You could dial onto AOL. 213 00:08:54,583 --> 00:08:57,333 AOL was specifically designed to be point-and-click. 214 00:08:57,417 --> 00:09:00,333 - Steve Case is the president of America Online. 215 00:09:00,417 --> 00:09:02,417 I interviewed him via computer... 216 00:09:02,500 --> 00:09:03,708 - And George asked, 217 00:09:03,792 --> 00:09:04,917 "What are the most popular 218 00:09:05,000 --> 00:09:06,542 America Online features now?" 219 00:09:06,625 --> 00:09:08,792 - He responds, "The real focus for us 220 00:09:08,875 --> 00:09:10,417 is on promoting interactivity." 221 00:09:10,500 --> 00:09:11,875 - What's the very best thing about it? 222 00:09:11,958 --> 00:09:13,583 - Yeah. - I think being able 223 00:09:13,667 --> 00:09:15,625 to communicate with just about anyone, anywhere. 224 00:09:15,708 --> 00:09:17,583 - One of the things that AOL realizes 225 00:09:17,667 --> 00:09:19,958 is that America Online can't be 226 00:09:20,042 --> 00:09:22,625 all 200-plus million people at once. 227 00:09:22,708 --> 00:09:24,542 You need little neighborhoods, 228 00:09:24,625 --> 00:09:27,292 and so chat rooms become Internet neighborhoods, 229 00:09:27,375 --> 00:09:28,875 where people who share interests 230 00:09:28,958 --> 00:09:30,792 create their own little space. 231 00:09:30,875 --> 00:09:32,333 - You can either click on the chat button up here, 232 00:09:32,417 --> 00:09:33,958 or go to the "people connection." 233 00:09:34,042 --> 00:09:35,792 That's what America Online calls it. 234 00:09:35,875 --> 00:09:37,625 And when you get here, click on "list rooms." 235 00:09:37,708 --> 00:09:39,208 You'll find different categories of rooms. 236 00:09:39,292 --> 00:09:40,833 - When I was a kid, I didn't know 237 00:09:40,917 --> 00:09:42,708 any other black, gay people. 238 00:09:42,792 --> 00:09:45,250 And the only people I knew were the folks that I met 239 00:09:45,333 --> 00:09:46,875 on America Online. 240 00:09:46,958 --> 00:09:49,708 I didn't come out to my mother till much later, 241 00:09:49,792 --> 00:09:51,333 but I was out on the Internet. 242 00:09:51,417 --> 00:09:54,458 - In many respects, AOL was, you know, 243 00:09:54,542 --> 00:09:56,833 one of the first social media companies. 244 00:09:56,917 --> 00:10:00,583 - Computer communication is not like human communication. 245 00:10:00,667 --> 00:10:02,583 There's no facial expression 246 00:10:02,667 --> 00:10:06,625 to help you know which way something ambiguous is meant. 247 00:10:06,708 --> 00:10:09,875 So the isolated communicators of cyberspace 248 00:10:09,958 --> 00:10:13,583 have come up with little signs made out of punctuation marks. 249 00:10:13,667 --> 00:10:15,333 They're called emoticons. 250 00:10:15,417 --> 00:10:17,750 - You were using text to have a conversation 251 00:10:17,833 --> 00:10:20,583 that felt like a face-to-face communication. 252 00:10:20,667 --> 00:10:24,208 You could see the start of this new online culture. 253 00:10:24,292 --> 00:10:26,250 - It's a technological revolution 254 00:10:26,333 --> 00:10:28,083 that's changing the way we do everything, 255 00:10:28,167 --> 00:10:30,667 from making friends to falling in love. 256 00:10:30,750 --> 00:10:32,500 - I mean, he was nice, and he never gave me 257 00:10:32,583 --> 00:10:34,458 any of the come-on lines. It was always friendly, and... 258 00:10:34,542 --> 00:10:36,042 - Wait, wait, wait. You're telling me that 259 00:10:36,125 --> 00:10:37,792 guys use pick-up lines on a computer? 260 00:10:37,875 --> 00:10:38,833 - Mm-hmm. 261 00:10:38,917 --> 00:10:40,750 - As the Internet grows, 262 00:10:40,833 --> 00:10:43,333 I'm finding information, I also wanna find love. 263 00:10:43,417 --> 00:10:46,667 - I just happened to stumble on Michael's address. 264 00:10:46,750 --> 00:10:48,417 I picked him out of the blue. 265 00:10:48,500 --> 00:10:51,500 I read his profile and I was completely floored. 266 00:10:51,583 --> 00:10:53,833 - Many of the businesses of the Internet 267 00:10:53,917 --> 00:10:55,917 work on connecting, for the first time, 268 00:10:56,000 --> 00:11:00,250 total strangers who have very narrow interests in common. 269 00:11:00,333 --> 00:11:03,875 - AOL was what was called a "walled garden." 270 00:11:03,958 --> 00:11:06,458 Picture this: you're paying a monthly fee 271 00:11:06,542 --> 00:11:09,750 for something with a limited number 272 00:11:09,833 --> 00:11:12,958 of things to do, but no matter how many things 273 00:11:13,042 --> 00:11:16,167 they put inside their garden, it could never come close 274 00:11:16,250 --> 00:11:18,042 to the hundreds of millions of things 275 00:11:18,125 --> 00:11:20,750 that would pop up on the open Internet. 276 00:11:20,833 --> 00:11:22,625 - The thing about the World Wide Web 277 00:11:22,708 --> 00:11:26,375 is that it has no central organizing body. 278 00:11:26,458 --> 00:11:29,583 It's chaotic. If you are running a website, 279 00:11:29,667 --> 00:11:32,167 how is anyone gonna find you? 280 00:11:32,250 --> 00:11:35,167 - Stanford grad students Jerry Yang and David Filo 281 00:11:35,250 --> 00:11:39,167 like spending hour after hour discovering interesting places 282 00:11:39,250 --> 00:11:41,875 on the Internet, and that is how they stumbled 283 00:11:41,958 --> 00:11:44,083 onto a fortune. - Ah! 284 00:11:44,167 --> 00:11:47,708 - Their million-dollar idea is called "Yahoo!" 285 00:11:47,792 --> 00:11:50,583 - ♪ Yahoo ♪ [banjo music] 286 00:11:50,667 --> 00:11:53,167 - Yahoo came in at just the perfect time. 287 00:11:53,250 --> 00:11:55,667 They literally made a list. 288 00:11:55,750 --> 00:11:58,292 It was just simply a listing. 289 00:11:58,375 --> 00:12:00,792 It was Jerry and David's web-listing. 290 00:12:00,875 --> 00:12:04,875 And they named it Yahoo, after rednecks--yahoos. 291 00:12:04,958 --> 00:12:07,375 - Yahoo was an exercise in organizing the Internet. 292 00:12:07,458 --> 00:12:10,583 It quickly became the leading way to find things, 293 00:12:10,667 --> 00:12:12,625 and it was a directory-based system. 294 00:12:12,708 --> 00:12:14,542 It wasn't a search-based system. 295 00:12:14,625 --> 00:12:16,625 The idea was to curate the whole Web. 296 00:12:16,708 --> 00:12:21,042 - Wall Street now values Yahoo at around $700 million, 297 00:12:21,125 --> 00:12:23,583 even though the company is barely profitable. 298 00:12:23,667 --> 00:12:26,042 - With the success of Netscape, 299 00:12:26,125 --> 00:12:29,292 and the growth of these digital upstarts, Yahoo, 300 00:12:29,375 --> 00:12:34,458 there was this energy that was not all in Seattle. 301 00:12:46,667 --> 00:12:49,458 - This is Silicon Valley, the heart and soul 302 00:12:49,542 --> 00:12:51,375 of the nation's computer business. 303 00:12:51,458 --> 00:12:55,875 Here, Microsoft is respected and feared as a powerful giant 304 00:12:55,958 --> 00:12:58,292 whose every footstep sends shivers 305 00:12:58,375 --> 00:13:00,083 through the entire industry. 306 00:13:00,167 --> 00:13:02,708 - There's this emerging war, basically, 307 00:13:02,792 --> 00:13:04,833 between the Silicon Valley culture, 308 00:13:04,917 --> 00:13:07,792 built up around the Web, and the Microsoft culture 309 00:13:07,875 --> 00:13:09,667 up in Redmond, and it's not 310 00:13:09,750 --> 00:13:11,708 just a cultural clash, but an economic clash, 311 00:13:11,792 --> 00:13:14,375 technological clash-- a clash for power. 312 00:13:14,458 --> 00:13:16,750 - Bill Gates had to turn Microsoft, 313 00:13:16,833 --> 00:13:20,333 like a supertanker, around to have it address the Internet. 314 00:13:20,417 --> 00:13:22,125 And the way they did that was by coming up 315 00:13:22,208 --> 00:13:24,083 with Internet Explorer, which they presented 316 00:13:24,167 --> 00:13:26,333 as the world's best browser. 317 00:13:26,417 --> 00:13:28,750 It wasn't. You know, Microsoft stuff, 318 00:13:28,833 --> 00:13:30,250 it never is the best. 319 00:13:30,333 --> 00:13:32,917 But it was well-marketed and it was pushed, 320 00:13:33,000 --> 00:13:34,708 and they had a lot of money behind it. 321 00:13:34,792 --> 00:13:37,750 - Here came Microsoft with its own version 322 00:13:37,833 --> 00:13:40,833 of a Web browser built into Windows 95. 323 00:13:40,917 --> 00:13:44,792 Their intention was to kill Netscape as the browser, 324 00:13:44,875 --> 00:13:46,750 and make Internet Explorer its replacement. 325 00:13:46,833 --> 00:13:48,625 all: Five! 326 00:13:48,708 --> 00:13:50,667 Four! Three! 327 00:13:50,750 --> 00:13:53,292 Two! One! 328 00:13:53,375 --> 00:13:54,917 Zero! 329 00:13:55,042 --> 00:13:56,708 - A consumer feeding frenzy. 330 00:13:56,792 --> 00:13:58,958 Many computer stores, like this one in Miami, 331 00:13:59,042 --> 00:14:01,625 opened at the stroke of midnight so customers could be 332 00:14:01,708 --> 00:14:04,833 the first to get their hands on Windows 95. 333 00:14:04,917 --> 00:14:07,667 all: ♪ Check out Windows 95 ♪ 334 00:14:07,750 --> 00:14:09,542 - It seems like an awful lot of fuss 335 00:14:09,625 --> 00:14:11,958 over a single product, but the product will have 336 00:14:12,042 --> 00:14:14,250 a huge impact, not just on Microsoft, 337 00:14:14,333 --> 00:14:16,458 but on the global computer industry. 338 00:14:16,542 --> 00:14:18,417 - This is Jennifer Aniston. I'm Matthew Perry. 339 00:14:18,500 --> 00:14:21,042 We're here to see Mr. Bill Gates about a possible starring role 340 00:14:21,125 --> 00:14:23,542 in the video guide to Microsoft Windows 95. 341 00:14:23,625 --> 00:14:26,125 [The Rolling Stones' "Start Me Up"] 342 00:14:26,208 --> 00:14:28,792 - All of the employees of Microsoft have been invited 343 00:14:28,875 --> 00:14:30,917 to a huge party in a tent over there 344 00:14:31,000 --> 00:14:32,833 on the Microsoft campus, and guess what song 345 00:14:32,917 --> 00:14:34,583 we could hear blaring out of there? 346 00:14:34,667 --> 00:14:37,417 You got it, Rolling Stones' "Start Me Up." 347 00:14:37,500 --> 00:14:41,125 - Windows 95 was the most successful 348 00:14:41,208 --> 00:14:43,708 software launch to this day. 349 00:14:43,792 --> 00:14:47,167 Everybody, whether they really wanted to or not, 350 00:14:47,250 --> 00:14:49,042 went out and got Windows 95. 351 00:14:49,125 --> 00:14:51,458 - Getting the Rolling Stones to allow their music 352 00:14:51,542 --> 00:14:53,583 to be used in the ad launch tonight 353 00:14:53,667 --> 00:14:56,167 is the sign of a company at the peak of its powers. 354 00:14:56,250 --> 00:14:59,250 The challenge for Microsoft is to stay there. 355 00:14:59,333 --> 00:15:01,917 With the race now on to exploit the Internet, 356 00:15:02,000 --> 00:15:05,042 it may soon be Microsoft's turn to fear the competition. 357 00:15:05,125 --> 00:15:07,375 - ♪ I've been running hot ♪ 358 00:15:07,458 --> 00:15:11,292 ♪ You got me tickin', gonna blow my top ♪ 359 00:15:13,625 --> 00:15:15,917 [dramatic music] 360 00:15:16,000 --> 00:15:18,667 - Apple Computer, a pioneer in the personal computers 361 00:15:18,750 --> 00:15:21,500 and software business, has fallen on hard times. 362 00:15:21,583 --> 00:15:23,542 After reporting a big quarterly loss, 363 00:15:23,625 --> 00:15:26,167 it decided to lay off 1,300 workers. 364 00:15:26,250 --> 00:15:28,708 - How do you feel about what's happened to Apple? 365 00:15:28,792 --> 00:15:31,167 Did it have to turn out the way it did? 366 00:15:31,250 --> 00:15:33,708 - It's hard to predict these things. I mean, Apple-- 367 00:15:33,792 --> 00:15:35,583 - Come on, Steve. You've thought about this. 368 00:15:35,667 --> 00:15:37,417 This is not a subject that's unfamiliar to you. 369 00:15:37,500 --> 00:15:38,917 - Yeah, it is. 370 00:15:39,000 --> 00:15:40,625 It's sort of ancient history to me right now. 371 00:15:40,708 --> 00:15:42,208 I don't really think about this stuff anymore, 372 00:15:42,292 --> 00:15:44,125 and Apple and Microsoft duke it out, 373 00:15:44,208 --> 00:15:46,250 and Netscape and Microsoft duke it out, 374 00:15:46,333 --> 00:15:48,208 and to me, it's a spectator sport. 375 00:15:48,292 --> 00:15:51,458 - In the mid-1990s, Apple had a couple more CEOs, 376 00:15:51,542 --> 00:15:54,583 none of whom really grasped the vision of Apple. 377 00:15:54,667 --> 00:15:56,792 As a result, the company just did worse 378 00:15:56,875 --> 00:15:58,833 and worse and worse as the decade progressed. 379 00:15:58,917 --> 00:16:02,083 - With big losses in the last quarter, 380 00:16:02,167 --> 00:16:04,792 With profit margins shrinking, 381 00:16:04,875 --> 00:16:07,625 Apple seems destined for a takeover. 382 00:16:07,708 --> 00:16:10,125 This is a computer that even has fan clubs. 383 00:16:10,208 --> 00:16:12,250 - I just love the Apple, and I always have. 384 00:16:12,333 --> 00:16:14,083 And I can't really say why. 385 00:16:14,167 --> 00:16:16,042 - Everyone was rooting for Apple to somehow survive, 386 00:16:16,125 --> 00:16:18,750 but it wasn't at all clear that Apple would 387 00:16:18,833 --> 00:16:21,542 be around at the end of the 1990s. 388 00:16:21,625 --> 00:16:23,500 - The troubled Apple Computer company 389 00:16:23,583 --> 00:16:25,000 may return to its core, 390 00:16:25,083 --> 00:16:27,250 in an effort to boost sagging sales. 391 00:16:27,333 --> 00:16:30,500 Apple reportedly will name its co-founder, Steve Jobs, 392 00:16:30,583 --> 00:16:32,917 as its new chairman. Jobs would replace a chairman 393 00:16:33,000 --> 00:16:35,000 who was ousted earlier this month. 394 00:16:35,083 --> 00:16:36,750 - Steve came over to Apple, 395 00:16:36,833 --> 00:16:40,292 sold NeXT to Apple for $400 million. 396 00:16:40,375 --> 00:16:43,125 He had no ambitions at Apple at all, 397 00:16:43,208 --> 00:16:46,958 but Steve Jobs was watching Apple flounder, 398 00:16:47,042 --> 00:16:49,833 and he just couldn't help himself. 399 00:16:49,917 --> 00:16:53,375 And so, he remade the company the way he wanted. 400 00:16:53,458 --> 00:16:55,583 And there was no one to oppose him 401 00:16:55,667 --> 00:16:57,917 because the company was exhausted. 402 00:16:58,000 --> 00:16:59,750 [cheers and applause] 403 00:16:59,833 --> 00:17:04,042 - Steve Jobs had exactly the abrasive 404 00:17:04,125 --> 00:17:06,417 but incisive personality 405 00:17:06,500 --> 00:17:08,500 that Apple needed at that point. 406 00:17:08,583 --> 00:17:10,792 They needed someone to come in to say, 407 00:17:10,875 --> 00:17:13,000 "Kill that project, kill that project, 408 00:17:13,083 --> 00:17:15,167 that's stupid, consolidate that," 409 00:17:15,250 --> 00:17:17,042 and focus the company. 410 00:17:17,125 --> 00:17:20,250 - I'd like to announce one of our first partnerships today, 411 00:17:20,333 --> 00:17:22,000 a very, very meaningful one. 412 00:17:22,083 --> 00:17:24,833 And that is one with Microsoft. 413 00:17:24,917 --> 00:17:28,292 [scattered applause] 414 00:17:28,375 --> 00:17:29,875 We're very, very happy about it. 415 00:17:29,958 --> 00:17:31,375 We're very, very excited about it. 416 00:17:31,458 --> 00:17:33,042 And I happen to have a special guest 417 00:17:33,125 --> 00:17:36,208 with me today, via satellite downlink. 418 00:17:36,292 --> 00:17:38,125 [crowd chattering] 419 00:17:38,208 --> 00:17:39,875 audience: Ooh! 420 00:17:39,958 --> 00:17:41,500 [Jobs chuckles] 421 00:17:41,583 --> 00:17:43,208 [crowd booing] 422 00:17:43,292 --> 00:17:46,167 - I don't think Steve Jobs has ever experienced, 423 00:17:46,250 --> 00:17:48,000 you know, before or after that, 424 00:17:48,083 --> 00:17:50,458 just people going, "Boo! No!" 425 00:17:50,542 --> 00:17:53,208 Microsoft represented everything 426 00:17:53,292 --> 00:17:57,125 that these hardcore Apple fans hated. 427 00:17:57,208 --> 00:17:59,042 - If we wanna move forward 428 00:17:59,125 --> 00:18:01,917 and see Apple healthy and prospering again, 429 00:18:02,000 --> 00:18:04,000 we have to let go of a few things here. 430 00:18:04,083 --> 00:18:07,667 We have to let go of this notion that for Apple to win, 431 00:18:07,750 --> 00:18:10,292 Microsoft has to lose, okay? 432 00:18:10,375 --> 00:18:11,458 [applause] 433 00:18:11,542 --> 00:18:13,083 - There was an alliance now, 434 00:18:13,167 --> 00:18:15,333 between these two former archrivals, 435 00:18:15,417 --> 00:18:19,292 and Microsoft was gonna invest $150 million in Apple. 436 00:18:19,375 --> 00:18:21,750 But, more important from Bill Gates' point of view, 437 00:18:21,833 --> 00:18:25,167 was that Apple would include Microsoft's browser 438 00:18:25,250 --> 00:18:27,750 in all Macintoshes. That was the last piece. 439 00:18:27,833 --> 00:18:30,792 Now he had domination of the browser world. 440 00:18:30,875 --> 00:18:32,792 - Microsoft says Internet Explorer 441 00:18:32,875 --> 00:18:35,208 just makes it easier to get around the Web. 442 00:18:35,292 --> 00:18:37,625 But when you hit a button to access services 443 00:18:37,708 --> 00:18:40,083 for travel, entertainment, news, and the like, 444 00:18:40,167 --> 00:18:42,667 you found sites owned by Microsoft. 445 00:18:42,750 --> 00:18:45,125 And that's what the government is worried about. 446 00:18:45,208 --> 00:18:47,875 Over the next few years, Americans may be buying 447 00:18:47,958 --> 00:18:50,042 billions of dollars in goods and services 448 00:18:50,125 --> 00:18:51,583 through the Internet, 449 00:18:51,667 --> 00:18:52,875 and that's a market too important, 450 00:18:52,958 --> 00:18:54,458 the government says, 451 00:18:54,542 --> 00:18:56,625 for one company to act as gatekeeper. 452 00:18:56,708 --> 00:18:59,625 - The U.S. Justice Department asked a federal court today 453 00:18:59,708 --> 00:19:02,125 to fine Microsoft Corporation 454 00:19:02,208 --> 00:19:05,583 a record $1 million a day. 455 00:19:05,667 --> 00:19:07,875 - The complaint against Microsoft came 456 00:19:07,958 --> 00:19:11,625 from executives at Netscape, a fast-growing software company 457 00:19:11,708 --> 00:19:14,333 that struck gold with its Web browser, 458 00:19:14,417 --> 00:19:16,833 but Microsoft began giving away 459 00:19:16,917 --> 00:19:20,458 its own browser, and required computer manufacturers 460 00:19:20,542 --> 00:19:22,042 to offer it with Windows. 461 00:19:22,125 --> 00:19:24,083 - What they're able to do is they're able to-- 462 00:19:24,167 --> 00:19:25,875 illegally, we believe-- use that monopoly power 463 00:19:25,958 --> 00:19:27,708 to block competition. They're able to pay people 464 00:19:27,792 --> 00:19:29,333 to not use our software, and they're able to do 465 00:19:29,417 --> 00:19:30,833 other things that monopolists 466 00:19:30,917 --> 00:19:32,208 are legally not allowed to do. 467 00:19:32,292 --> 00:19:33,625 - A lot of people were saying 468 00:19:33,708 --> 00:19:35,375 the antitrust laws are outmoded. 469 00:19:35,458 --> 00:19:38,042 "Technology will enforce competition on its own." 470 00:19:38,125 --> 00:19:40,750 The counterargument is that when you begin 471 00:19:40,833 --> 00:19:44,500 to get lots of people to use your operating system, 472 00:19:44,583 --> 00:19:47,208 it becomes harder and harder for somebody else 473 00:19:47,292 --> 00:19:49,167 to break in to that industry. 474 00:19:49,250 --> 00:19:52,125 - Microsoft chairman Bill Gates goes before Congress 475 00:19:52,208 --> 00:19:54,792 for the first time today. Gates is expected to face 476 00:19:54,875 --> 00:19:57,625 tough questions from the Senate Judiciary Committee. 477 00:19:57,708 --> 00:19:59,250 - I wanna--if you don't mind-- ask-- 478 00:19:59,333 --> 00:20:01,083 can I ask the audience one question 479 00:20:01,167 --> 00:20:02,542 and get a little quick poll here. 480 00:20:02,625 --> 00:20:04,708 How many of you use Intel-based PCs 481 00:20:04,792 --> 00:20:06,625 in this audience? Raise your hands. 482 00:20:06,708 --> 00:20:09,333 All right, of that group who use PCs, 483 00:20:09,417 --> 00:20:15,250 how many of you use a PC without Microsoft's operating system? 484 00:20:15,333 --> 00:20:17,958 Gentlemen, that's a monopoly. That's a lot. 485 00:20:18,042 --> 00:20:19,708 That's 100%. 486 00:20:19,792 --> 00:20:23,083 - It is fair to say that when you compete with people, 487 00:20:23,167 --> 00:20:25,667 you think, "Hey, we're gonna have a better product. 488 00:20:25,750 --> 00:20:28,125 "We're gonna win the customer. We're gonna do a good job here 489 00:20:28,208 --> 00:20:29,292 on these things." 490 00:20:29,375 --> 00:20:31,000 - The hearing makes clear, 491 00:20:31,083 --> 00:20:33,292 I think, to most people, like, "Oh, huh, 492 00:20:33,375 --> 00:20:36,042 "so, that Gates guy, he's not just, like, 493 00:20:36,125 --> 00:20:37,792 "kind of a good-natured geek in glasses. 494 00:20:37,875 --> 00:20:40,542 He's another rich, rapacious capitalist." 495 00:20:40,625 --> 00:20:42,625 - Police and security guards in Belgium 496 00:20:42,708 --> 00:20:45,792 were caught flat-footed today by a cowardly sneak attack 497 00:20:45,875 --> 00:20:48,042 on one of the world's wealthiest men. 498 00:20:48,125 --> 00:20:49,458 - Careful, careful! - Oh-- 499 00:20:49,542 --> 00:20:50,958 - [yelps] 500 00:20:51,042 --> 00:20:52,708 - It's been a bad week for Microsoft 501 00:20:52,792 --> 00:20:54,583 and its cyber-meister, Bill Gates. 502 00:20:54,667 --> 00:20:56,750 Yesterday, at the Chicago debut 503 00:20:56,833 --> 00:20:59,375 of his much-awaited Windows 98 system, 504 00:20:59,458 --> 00:21:01,875 the program dramatically crashed. 505 00:21:01,958 --> 00:21:04,625 - You'll notice that this scanner-build--whoa. 506 00:21:04,708 --> 00:21:06,500 - [chuckles] 507 00:21:06,583 --> 00:21:09,125 - Well, it's shaping up as one of the antitrust battles 508 00:21:09,208 --> 00:21:10,833 of the century. 509 00:21:10,917 --> 00:21:13,625 Federal and state governments today sued Microsoft, 510 00:21:13,708 --> 00:21:15,833 saying the computer software giant 511 00:21:15,917 --> 00:21:20,125 is predatory and scheming to crush all competition. 512 00:21:20,208 --> 00:21:23,292 - Microsoft used its monopoly power 513 00:21:23,375 --> 00:21:26,333 to develop a chokehold on the browser software 514 00:21:26,417 --> 00:21:28,458 needed to access the Internet. 515 00:21:28,542 --> 00:21:31,583 - I don't think Bill Gates recognized 516 00:21:31,667 --> 00:21:33,792 the seriousness of the situation. 517 00:21:33,875 --> 00:21:37,333 This was a case that simply wasn't gonna go away. 518 00:21:37,417 --> 00:21:40,333 - Worst case, they'll ask us to create 519 00:21:40,417 --> 00:21:42,917 a crippled product, and that would be too bad. 520 00:21:43,000 --> 00:21:44,500 That would really hold us back. 521 00:21:44,583 --> 00:21:46,708 So we're quite confident that won't happen. 522 00:21:46,792 --> 00:21:49,917 - The government tried to avoid this trial 523 00:21:50,000 --> 00:21:51,625 in every way they could. 524 00:21:51,708 --> 00:21:54,292 But once Bill rejected every settlement offer, 525 00:21:54,375 --> 00:21:55,875 the world just changed, because it was like, 526 00:21:55,958 --> 00:21:57,792 "Okay, so now we're going to court." 527 00:21:57,875 --> 00:22:00,125 The government might not be good at some things, 528 00:22:00,208 --> 00:22:01,917 but it's really good at litigation. 529 00:22:02,000 --> 00:22:04,917 And when it decides it's gonna win a lawsuit... 530 00:22:05,000 --> 00:22:07,833 you are gonna face a formidable adversary. 531 00:22:07,917 --> 00:22:10,083 ♪ ♪ 532 00:22:13,917 --> 00:22:16,333 [dramatic music] 533 00:22:16,417 --> 00:22:18,417 [cheers and applause] 534 00:22:18,500 --> 00:22:20,125 - It's been ten months 535 00:22:20,208 --> 00:22:23,292 since the new management team took over at Apple. 536 00:22:23,375 --> 00:22:25,958 And because of their hard work, I'm really pleased to report 537 00:22:26,042 --> 00:22:28,417 to you today that Apple's back on track. 538 00:22:28,500 --> 00:22:29,458 And... 539 00:22:29,542 --> 00:22:32,208 [cheers and applause] 540 00:22:32,292 --> 00:22:35,500 Today, I'm incredibly pleased 541 00:22:35,583 --> 00:22:39,000 to introduce iMac, our consumer product. 542 00:22:39,083 --> 00:22:41,417 This... 543 00:22:41,500 --> 00:22:42,833 is iMac. 544 00:22:42,917 --> 00:22:44,583 [cheers and applause] 545 00:22:44,667 --> 00:22:45,792 So... 546 00:22:45,875 --> 00:22:47,958 [soaring instrumental jingle] 547 00:22:48,667 --> 00:22:52,125 - The iMac was a computer that was meant to look 548 00:22:52,208 --> 00:22:56,250 like something you would want people to see in your house. 549 00:22:56,333 --> 00:22:59,292 It ushered in this new era 550 00:22:59,375 --> 00:23:01,458 where design started to matter. 551 00:23:01,542 --> 00:23:03,833 - The iMac was sexy. I had a blue one, 552 00:23:03,917 --> 00:23:06,833 and it had curves. It was built like a sports car. 553 00:23:06,917 --> 00:23:09,083 When people think of computers, they think of boring, 554 00:23:09,167 --> 00:23:11,792 they think of beige, they think of it as utilitarian. 555 00:23:11,875 --> 00:23:13,542 Apple made it fun. 556 00:23:13,625 --> 00:23:16,208 - You can take it home, take it out of the box, 557 00:23:16,292 --> 00:23:18,167 and be cruising the Internet within ten minutes. 558 00:23:18,250 --> 00:23:19,917 And that's not something you can do 559 00:23:20,000 --> 00:23:22,333 on any other computer we know of. 560 00:23:22,417 --> 00:23:23,708 - He added software to make it easier 561 00:23:23,792 --> 00:23:25,250 to connect to the Internet. 562 00:23:25,333 --> 00:23:28,208 So the "I" in iMac was for "Internet." 563 00:23:28,292 --> 00:23:31,000 - It changed how people thought of Apple, 564 00:23:31,083 --> 00:23:32,833 and changed how people perceived 565 00:23:32,917 --> 00:23:34,625 what had been a dying company. 566 00:23:34,708 --> 00:23:38,542 Suddenly, people saw that there was a spark here. 567 00:23:38,625 --> 00:23:42,417 - In the world of computers, it's kill or be killed, 568 00:23:42,500 --> 00:23:43,958 and the original whiz kid 569 00:23:44,042 --> 00:23:45,750 was thought to be dying an early death. 570 00:23:45,833 --> 00:23:47,083 But guess what? 571 00:23:47,167 --> 00:23:48,750 Mac is back. 572 00:23:48,833 --> 00:23:50,875 - A year ago, nobody would have predicted this. 573 00:23:50,958 --> 00:23:53,542 Steve Jobs, the head man at Apple Computer, 574 00:23:53,625 --> 00:23:57,208 hailed as the visionary hero who brought the company back 575 00:23:57,292 --> 00:23:58,667 from the verge of extinction. 576 00:23:58,750 --> 00:24:01,250 - In 4 1/2 months, iMac has become 577 00:24:01,333 --> 00:24:03,333 the number-one selling computer in America. 578 00:24:03,417 --> 00:24:05,250 - Bill Gates ultimately represents 579 00:24:05,333 --> 00:24:07,292 the computer genius as entrepreneur. 580 00:24:07,375 --> 00:24:11,417 Steve Jobs represents the entrepreneur as artist. 581 00:24:11,500 --> 00:24:14,125 - You know, you can say what you want about Steve Jobs, 582 00:24:14,208 --> 00:24:16,708 but he knew how to make people believe. 583 00:24:16,792 --> 00:24:19,208 - In federal court in Washington, D.C. today, 584 00:24:19,292 --> 00:24:22,000 a case of legal hardball and computer software. 585 00:24:22,083 --> 00:24:24,000 The U.S. government set out to prove 586 00:24:24,083 --> 00:24:26,333 that computer-industry giant, Microsoft, 587 00:24:26,417 --> 00:24:29,083 tried to bully the competition, illegally, 588 00:24:29,167 --> 00:24:31,542 into submission or out of business. 589 00:24:31,625 --> 00:24:33,792 - As Microsoft and Justice Department lawyers 590 00:24:33,875 --> 00:24:35,708 came to do battle at the federal courthouse, 591 00:24:35,792 --> 00:24:37,583 a Bill Gates impersonator showed up, 592 00:24:37,667 --> 00:24:38,792 adding a surreal touch. 593 00:24:38,875 --> 00:24:40,542 Inside the courtroom, 594 00:24:40,625 --> 00:24:43,375 the real Bill Gates, on videotape, under oath, 595 00:24:43,458 --> 00:24:45,167 in a deposition taken in August. 596 00:24:45,250 --> 00:24:47,000 - The thing about a deposition 597 00:24:47,083 --> 00:24:51,500 is the only thing that the witness can really do 598 00:24:51,583 --> 00:24:54,292 is to sit there and tell the truth, 599 00:24:54,375 --> 00:24:56,000 simply and directly. 600 00:24:56,083 --> 00:25:00,125 The first two hours of the deposition was... 601 00:25:00,208 --> 00:25:01,792 quite unexpected. 602 00:25:01,875 --> 00:25:03,750 - From the stuff you've given me here-- 603 00:25:03,833 --> 00:25:05,542 - I don't want you to just read. I'm asking 604 00:25:05,625 --> 00:25:07,500 for your present recollection, if you have one. 605 00:25:07,583 --> 00:25:09,333 I can read the document myself. 606 00:25:09,417 --> 00:25:11,417 - I don't know what you mean, "my present recollection"? 607 00:25:11,500 --> 00:25:13,542 What do you mean by "Internet software"? 608 00:25:13,625 --> 00:25:15,583 The full breadth of your question? 609 00:25:15,667 --> 00:25:18,875 - This person who I know is brilliant 610 00:25:18,958 --> 00:25:22,042 and articulate and passionate is withdrawn, 611 00:25:22,125 --> 00:25:24,458 playing word games, being evasive, 612 00:25:24,542 --> 00:25:27,708 doing everything that makes him look 613 00:25:27,792 --> 00:25:30,750 like he is not confident in his position. 614 00:25:30,833 --> 00:25:33,625 - You recognize that this is a document 615 00:25:33,708 --> 00:25:35,958 produced from Microsoft's files, do you not, sir? 616 00:25:36,042 --> 00:25:38,083 - No. - You don't? 617 00:25:38,167 --> 00:25:39,917 - Well, how would I know that? 618 00:25:40,000 --> 00:25:42,000 - David Boies, the famous litigator, 619 00:25:42,083 --> 00:25:43,667 he has a photographic memory. 620 00:25:43,750 --> 00:25:46,375 He would ask Gates in the deposition, 621 00:25:46,458 --> 00:25:48,083 "Do you ever remember saying this?" 622 00:25:48,167 --> 00:25:49,875 "No, I never would say something like that." 623 00:25:49,958 --> 00:25:51,875 Boies, without looking at notes, would say, 624 00:25:51,958 --> 00:25:55,125 "Would you call up Document 3,021, please? 625 00:25:55,208 --> 00:25:57,208 - Did you know that Microsoft people 626 00:25:57,292 --> 00:26:01,458 were meeting with Netscape before they actually met? 627 00:26:01,542 --> 00:26:03,792 - I don't recall knowing in advance. 628 00:26:03,875 --> 00:26:05,542 - Government lawyer David Boies 629 00:26:05,625 --> 00:26:07,667 revealed an internal Microsoft memorandum, 630 00:26:07,750 --> 00:26:09,208 written by Gates, 631 00:26:09,292 --> 00:26:10,833 three weeks before that meeting. 632 00:26:10,917 --> 00:26:12,792 "I think there is a very powerful deal 633 00:26:12,875 --> 00:26:15,708 of some kind we can do with Netscape," Gates wrote. 634 00:26:19,375 --> 00:26:21,458 - When I covered the trial, one of the things 635 00:26:21,542 --> 00:26:24,750 the judge said to me is he didn't believe Bill Gates. 636 00:26:24,833 --> 00:26:27,542 And that deposition was very instrumental 637 00:26:27,625 --> 00:26:29,833 in shaping the judge's decision. 638 00:26:29,917 --> 00:26:31,542 - I've never seen a stamp like that. 639 00:26:31,625 --> 00:26:33,958 I've never used a stamp like that. 640 00:26:34,042 --> 00:26:36,000 - Haven't you seen stamps like that 641 00:26:36,083 --> 00:26:37,708 on every single one of the documents 642 00:26:37,792 --> 00:26:39,750 that you've been shown during this deposition? 643 00:26:39,833 --> 00:26:42,042 - Can you get me all the exhibits? 644 00:26:42,125 --> 00:26:45,875 - It's just a waste of time. - It is a waste of time. 645 00:26:45,958 --> 00:26:48,292 - Technology is hard to understand. 646 00:26:48,375 --> 00:26:52,250 Their pitch to the judge was, "Trust us. 647 00:26:52,333 --> 00:26:57,292 We're doing what we're doing for the consumer." 648 00:26:57,375 --> 00:27:00,500 The deposition made him and the company 649 00:27:00,583 --> 00:27:02,833 look like they were not trustworthy. 650 00:27:02,917 --> 00:27:04,417 - Because of this deposition 651 00:27:04,500 --> 00:27:06,167 and the snippets of it that played out 652 00:27:06,250 --> 00:27:08,583 day after day, on national television, 653 00:27:08,667 --> 00:27:11,792 it was an incredibly precipitous decline 654 00:27:11,875 --> 00:27:14,125 in how most people viewed Bill Gates. 655 00:27:14,208 --> 00:27:17,292 - He was in an environment that, unlike almost 656 00:27:17,375 --> 00:27:19,167 every other environment in which he operates, 657 00:27:19,250 --> 00:27:20,583 he did not control. 658 00:27:20,667 --> 00:27:23,167 No witness controls a deposition, 659 00:27:23,250 --> 00:27:25,250 no matter how rich, no matter how powerful. 660 00:27:25,333 --> 00:27:27,875 Every witness has to sit there and answer questions. 661 00:27:27,958 --> 00:27:29,917 - In words surprisingly blunt, 662 00:27:30,000 --> 00:27:33,625 Judge Thomas Penfield Jackson declared Microsoft a monopoly. 663 00:27:33,708 --> 00:27:35,250 Lawyers from the Justice Department 664 00:27:35,333 --> 00:27:37,500 in the 19 states that sued Microsoft 665 00:27:37,583 --> 00:27:39,500 immediately claimed victory. 666 00:27:39,583 --> 00:27:41,333 - Microsoft is a monopolist, 667 00:27:41,417 --> 00:27:45,375 and it engaged in massive anti-competitive practices. 668 00:27:45,458 --> 00:27:47,625 - It drove Bill Gates crazy 669 00:27:47,708 --> 00:27:49,792 that the government was portraying him 670 00:27:49,875 --> 00:27:52,750 as some kind of evil force. 671 00:27:52,833 --> 00:27:54,542 Was he ruthless as a businessman? Yes. 672 00:27:54,625 --> 00:27:57,708 Did he see himself as a ruthless businessman? No. 673 00:27:57,792 --> 00:27:59,500 He saw himself as someone 674 00:27:59,583 --> 00:28:02,625 who was advancing the common good. 675 00:28:02,708 --> 00:28:06,333 And the government didn't see it that way. 676 00:28:06,417 --> 00:28:08,875 [somber music] 677 00:28:08,958 --> 00:28:12,083 ♪ ♪ 678 00:28:14,958 --> 00:28:17,000 [dramatic music] 679 00:28:17,083 --> 00:28:19,375 - There is a lot of chat about technology 680 00:28:19,458 --> 00:28:21,125 in business, you'd expect that, 681 00:28:21,208 --> 00:28:23,500 but some of the conversation might surprise you. 682 00:28:23,583 --> 00:28:25,250 It is not just tech talk. 683 00:28:25,333 --> 00:28:27,708 They're talking about sex. 684 00:28:27,792 --> 00:28:30,042 - Are you an adult? - What she does 685 00:28:30,125 --> 00:28:33,417 is she loads pictures, mostly X-rated pictures, 686 00:28:33,500 --> 00:28:35,083 into her computer, 687 00:28:35,167 --> 00:28:37,042 and then customers anywhere in the world 688 00:28:37,125 --> 00:28:40,000 can call up Laura's Lair and see on their home computer 689 00:28:40,083 --> 00:28:44,458 this list: 15,000 descriptions of photos 690 00:28:44,542 --> 00:28:47,167 in language that's not always suitable for TV. 691 00:28:47,250 --> 00:28:50,417 - Pornography is always the first to make money 692 00:28:50,500 --> 00:28:51,875 on any new technology. 693 00:28:51,958 --> 00:28:55,500 And not just technology since computers. 694 00:28:55,583 --> 00:28:57,625 I mean, since the beginning. 695 00:28:57,708 --> 00:29:00,875 - Now, Laura's customers pay to transfer these photos 696 00:29:00,958 --> 00:29:02,583 from her computer, through the phone lines, 697 00:29:02,667 --> 00:29:03,833 to their computer. 698 00:29:03,917 --> 00:29:05,292 - Okay, here it comes. 699 00:29:05,375 --> 00:29:07,042 - Okay, how do I know--oh. - [laughs] 700 00:29:07,125 --> 00:29:08,417 - Okay, so they don't have clothes on. 701 00:29:08,500 --> 00:29:09,833 You didn't tell me that. 702 00:29:09,917 --> 00:29:11,875 How do I stop sweating? - [laughs] 703 00:29:12,000 --> 00:29:14,958 - The adult industry was very interested 704 00:29:15,042 --> 00:29:17,250 in figuring out how to make credit cards work. 705 00:29:17,333 --> 00:29:19,667 That had benefits for online commerce. 706 00:29:19,750 --> 00:29:24,208 It boosted consumer acceptance of online credit card use. 707 00:29:24,292 --> 00:29:26,417 - Our little shopping carts that we now use 708 00:29:26,500 --> 00:29:28,583 are invented by pornographers. 709 00:29:28,667 --> 00:29:30,958 - What was unknown was whether or not 710 00:29:31,042 --> 00:29:35,792 somebody could set up a website and actually make money. 711 00:29:35,875 --> 00:29:39,583 And the proof of concept of that was pornography. 712 00:29:39,667 --> 00:29:41,333 - For the most part, entrepreneurs have not 713 00:29:41,417 --> 00:29:43,792 figured out a way to make profit on the Internet, 714 00:29:43,875 --> 00:29:45,875 that is, until eBay came along. 715 00:29:45,958 --> 00:29:49,583 - Pierre Omidyar started the auction site as a hobby. 716 00:29:49,667 --> 00:29:51,875 Three years later, it has a market value 717 00:29:51,958 --> 00:29:53,708 of close to $6 billion, 718 00:29:53,792 --> 00:29:56,625 and is a superstar on Wall Street. 719 00:29:56,708 --> 00:29:59,250 eBay makes its money by charging to list an item, 720 00:29:59,333 --> 00:30:02,833 then takes a small percentage of the final selling price 721 00:30:02,917 --> 00:30:04,333 if it sells. 722 00:30:04,417 --> 00:30:06,333 - If you've got an item you wanna sell, 723 00:30:06,417 --> 00:30:10,250 like a 1967 Green Hornet lunch pail, for example, 724 00:30:10,333 --> 00:30:12,042 you write up a brief description, 725 00:30:12,125 --> 00:30:15,250 add a digital photo and decide on an opening bid. 726 00:30:15,333 --> 00:30:17,625 - eBay really changed everything, 727 00:30:17,708 --> 00:30:20,500 and not because what they were offering 728 00:30:20,583 --> 00:30:23,167 was so incredible and revolutionary. 729 00:30:23,250 --> 00:30:25,250 Essentially, what they were doing 730 00:30:25,333 --> 00:30:27,542 was they were automating the middleman. 731 00:30:27,625 --> 00:30:29,708 - All right, 600 million hits a month. 732 00:30:29,792 --> 00:30:31,833 - That's right, that's right. - Okay, that's a lot of people. 733 00:30:31,917 --> 00:30:33,792 How do you stop the unscrupulous? 734 00:30:33,875 --> 00:30:37,458 - Problems like that are really very, very, rare on eBay. 735 00:30:37,542 --> 00:30:39,542 It's all based on trust. 736 00:30:39,625 --> 00:30:41,750 - One thing eBay pioneered 737 00:30:41,833 --> 00:30:43,750 is this idea that we rate each other, 738 00:30:43,833 --> 00:30:46,292 so that future transaction participants 739 00:30:46,375 --> 00:30:48,250 can see whether you're a good person 740 00:30:48,333 --> 00:30:50,917 to deal with or not. It's in your financial interest 741 00:30:51,000 --> 00:30:52,792 to be looked up to and respected 742 00:30:52,875 --> 00:30:56,208 as a trustworthy transactional partner. 743 00:30:56,292 --> 00:30:57,708 - On "NBC News In Depth" tonight, 744 00:30:57,792 --> 00:30:59,500 we're gonna talk about the superstars 745 00:30:59,583 --> 00:31:02,167 of the stock market, those red-hot Internet stocks. 746 00:31:02,250 --> 00:31:03,750 Companies that, in some cases, 747 00:31:03,833 --> 00:31:05,417 didn't even exist a few years ago, 748 00:31:05,500 --> 00:31:07,542 are now trading into the stratosphere. 749 00:31:07,625 --> 00:31:11,083 - The whole dot-com bubble of the late '90s 750 00:31:11,167 --> 00:31:13,375 was based on this idea that what counted 751 00:31:13,458 --> 00:31:16,042 was not profit, what counted was eyeballs. 752 00:31:16,125 --> 00:31:19,042 If you could get enough people using your stuff, 753 00:31:19,125 --> 00:31:21,375 you would figure out a way, 754 00:31:21,458 --> 00:31:23,917 organically from that, to make a profit. 755 00:31:24,000 --> 00:31:27,250 - The daily volume: 3.7 million shares. 756 00:31:27,333 --> 00:31:29,833 We are almost a $2 billion company. 757 00:31:29,917 --> 00:31:31,583 [all cheering] 758 00:31:31,667 --> 00:31:33,167 - People love these stocks. 759 00:31:33,250 --> 00:31:36,375 Anything that has ".com" or "net" in its name, 760 00:31:36,458 --> 00:31:38,333 it goes like hot cakes. 761 00:31:38,417 --> 00:31:41,167 - It's billed as the Earth's biggest bookstore, 762 00:31:41,250 --> 00:31:42,917 not just the country's, but the Earth's, 763 00:31:43,000 --> 00:31:45,833 but you can't shop there unless you have a computer. 764 00:31:45,917 --> 00:31:47,625 It's a virtual bookstore. 765 00:31:47,708 --> 00:31:49,917 - Books, books, and more books. 766 00:31:50,000 --> 00:31:52,375 That's what they do at Amazon.com. 767 00:31:52,458 --> 00:31:54,750 - If you were to print the Amazon.com catalog, 768 00:31:54,833 --> 00:31:57,167 it would be the size of seven New York City phonebooks. 769 00:31:57,250 --> 00:32:01,083 - In the early '90s, Jeff Bezos looked 770 00:32:01,167 --> 00:32:03,125 at what the Internet could be 771 00:32:03,208 --> 00:32:05,167 and he decided that the Internet could be anything. 772 00:32:05,250 --> 00:32:08,583 - Bezos started Amazon.com at this modest ranch home 773 00:32:08,667 --> 00:32:10,458 in Seattle in 1994. 774 00:32:10,542 --> 00:32:12,917 Less than five years later, his idea of selling books 775 00:32:13,000 --> 00:32:14,542 on the Internet has grown 776 00:32:14,625 --> 00:32:16,792 into a multi-billion-dollar business. 777 00:32:16,875 --> 00:32:19,208 - The largest physical bookstores only carry 778 00:32:19,292 --> 00:32:21,458 about 175,000 titles. 779 00:32:21,542 --> 00:32:24,458 Amazon.com has 2 1/2 million titles in its online catalog. 780 00:32:24,542 --> 00:32:27,417 There's no way to have a 2 1/2 million-title 781 00:32:27,500 --> 00:32:29,250 physical bookstore. 782 00:32:29,333 --> 00:32:31,250 - Bezos understood that it would take decades 783 00:32:31,333 --> 00:32:34,875 to create this infrastructure of shipping and warehouses. 784 00:32:34,958 --> 00:32:36,875 - He had this vision of completely 785 00:32:36,958 --> 00:32:38,542 upending the retail business. 786 00:32:38,625 --> 00:32:40,125 - A couple of things we have to get to, 787 00:32:40,208 --> 00:32:41,958 which is often said about your company, 788 00:32:42,042 --> 00:32:43,667 you're losing money. 789 00:32:43,750 --> 00:32:45,875 +- I can tell you that I think it's good 790 00:32:45,958 --> 00:32:47,667 that we're losing money right now. 791 00:32:47,750 --> 00:32:51,083 It's important to Amazon.com someday, in the future, 792 00:32:51,167 --> 00:32:53,125 in the long term-- - We'd just like to know 793 00:32:53,208 --> 00:32:55,083 what day that is. [laughs] 794 00:32:55,167 --> 00:32:57,125 - You can't be the everything store 795 00:32:57,208 --> 00:32:59,542 unless you're absolutely gigantic. 796 00:32:59,625 --> 00:33:02,875 Bezos' philosophy was, "Get big fast." 797 00:33:02,958 --> 00:33:05,958 Earning money, making a profit, that'll come later. 798 00:33:06,042 --> 00:33:08,500 For now, let's become the 800-pound gorilla. 799 00:33:08,583 --> 00:33:10,500 - This year, I think more and more people 800 00:33:10,583 --> 00:33:12,167 are gonna do more and more of their shopping online. 801 00:33:12,250 --> 00:33:13,792 It's so much more convenient, 802 00:33:13,875 --> 00:33:15,583 because you have almost unlimited selection. 803 00:33:15,667 --> 00:33:17,542 The convenience is gonna make this the year 804 00:33:17,625 --> 00:33:19,833 that shopping really comes of age on the Internet. 805 00:33:19,917 --> 00:33:21,833 - This was a time that allowed you to make choices 806 00:33:21,917 --> 00:33:24,625 as a consumer without gatekeepers 807 00:33:24,708 --> 00:33:26,208 choosing things for you. 808 00:33:26,292 --> 00:33:29,167 You could decide, "I want that," and you'd get it. 809 00:33:29,250 --> 00:33:30,792 If you don't live in a big city, 810 00:33:30,875 --> 00:33:32,958 you could still get big-city stuff. 811 00:33:33,042 --> 00:33:35,750 - The worldwide computer network called the Internet 812 00:33:35,833 --> 00:33:39,292 has inspired more movies than any big-deal technological fad 813 00:33:39,375 --> 00:33:42,000 since, oh, the CB radio boom of the 1970s. 814 00:33:42,083 --> 00:33:45,667 The Internet itself, however, is definitely exploding. 815 00:33:45,750 --> 00:33:47,417 - It hit and within, like, two years, 816 00:33:47,500 --> 00:33:49,792 it just-- it's become so powerful. 817 00:33:49,875 --> 00:33:52,125 - We're sitting on the most perfect beach 818 00:33:52,208 --> 00:33:55,125 in the world and all we can think about is where-- 819 00:33:55,208 --> 00:33:58,292 - Where can I hook up my modem? 820 00:33:58,375 --> 00:34:02,542 - In 1999, we are-- culturally, socially, 821 00:34:02,625 --> 00:34:04,750 financially-- quite dependent on the Internet. 822 00:34:04,833 --> 00:34:07,083 - In Washington today, a special Senate Committee 823 00:34:07,167 --> 00:34:10,125 is preparing to release a fairly alarming report 824 00:34:10,208 --> 00:34:13,042 on the Y2K millennium computer problem. 825 00:34:13,125 --> 00:34:15,125 They call it one of the most serious 826 00:34:15,208 --> 00:34:17,292 and potentially devastating events 827 00:34:17,375 --> 00:34:19,167 the nation has ever encountered. 828 00:34:19,250 --> 00:34:21,750 - The brains of most computers, the chips that do the thinking, 829 00:34:21,833 --> 00:34:25,042 have tiny, built-in clocks, and many register the year 830 00:34:25,125 --> 00:34:26,708 with only the last two digits, 831 00:34:26,792 --> 00:34:29,208 assuming the first two are always 19. 832 00:34:29,292 --> 00:34:31,542 - The problem was not that the computer 833 00:34:31,625 --> 00:34:33,292 would think that it's 1900. 834 00:34:33,375 --> 00:34:35,542 The problem was it wouldn't know what to do. 835 00:34:35,625 --> 00:34:37,500 It would just break down and go, 836 00:34:37,583 --> 00:34:39,167 "Ehh, can't process this." 837 00:34:39,250 --> 00:34:42,042 - It could trigger widespread computer failures, 838 00:34:42,125 --> 00:34:43,708 blackouts and breakdowns 839 00:34:43,792 --> 00:34:45,375 of everything from home appliances 840 00:34:45,458 --> 00:34:47,083 to the global financial system. 841 00:34:47,167 --> 00:34:49,875 - If we left things as they are right now, 842 00:34:49,958 --> 00:34:52,167 the military would effectively shut down. 843 00:34:52,250 --> 00:34:55,375 - The Pentagon will spend at least $4 billion 844 00:34:55,458 --> 00:34:56,875 to defuse the millennium bomb. 845 00:34:56,958 --> 00:34:58,500 And Pentagon officials are confident 846 00:34:58,583 --> 00:35:00,333 they'll do it, but critics claim 847 00:35:00,417 --> 00:35:03,375 they started too late, and those thousands of fixes 848 00:35:03,458 --> 00:35:05,125 won't be done in time. 849 00:35:05,208 --> 00:35:07,458 - Many states have not yet updated their computers 850 00:35:07,542 --> 00:35:10,833 that run programs such as Medicaid and food stamps, 851 00:35:10,917 --> 00:35:14,208 benefits that millions of families rely on. 852 00:35:14,292 --> 00:35:16,250 - On New Year's Eve, 1999, 853 00:35:16,333 --> 00:35:18,292 I was prepared for the world to shut down. 854 00:35:18,375 --> 00:35:19,750 - For a growing number of people, 855 00:35:19,833 --> 00:35:21,917 the year 2000 is not a milestone 856 00:35:22,000 --> 00:35:25,917 as much as it is a sign of some sort of impending chaos. 857 00:35:26,000 --> 00:35:27,625 - At home, I got lots of water, 858 00:35:27,708 --> 00:35:30,833 generator, flashlights, batteries, canned food... 859 00:35:30,917 --> 00:35:32,417 - So what do you think's gonna happen? 860 00:35:32,500 --> 00:35:33,875 - I think there's gonna be riots. 861 00:35:33,958 --> 00:35:35,792 - "Get ready!" warn the books. 862 00:35:35,875 --> 00:35:38,250 Computer failures will shut down electric utilities, 863 00:35:38,333 --> 00:35:40,458 prison gates will swing open at midnight, 864 00:35:40,542 --> 00:35:42,958 terrorist attacks will occur in larger cities, 865 00:35:43,042 --> 00:35:45,250 and wild dog packs will roam the streets. 866 00:35:45,333 --> 00:35:48,750 And many of these books recommend stockpiling weapons 867 00:35:48,833 --> 00:35:50,167 as a precaution. 868 00:35:50,250 --> 00:35:51,792 - I just wanted to be prepared 869 00:35:51,875 --> 00:35:53,667 in case, you know, anything happens for Y2K. 870 00:35:53,750 --> 00:35:56,333 [ominous music] 871 00:36:02,208 --> 00:36:05,333 [dramatic music] 872 00:36:06,750 --> 00:36:09,292 - Now, if you are just joining us, good morning. 873 00:36:09,375 --> 00:36:11,625 And let us assure you all is well. 874 00:36:11,708 --> 00:36:14,958 Apocalypse is not now. The sky is not falling. 875 00:36:15,042 --> 00:36:16,708 The dreaded millennium bug bugged out. 876 00:36:16,792 --> 00:36:19,208 - For the most part, life went on as normal. 877 00:36:19,292 --> 00:36:20,625 The sun came up, 878 00:36:20,708 --> 00:36:22,500 people watched morning television, 879 00:36:22,583 --> 00:36:24,833 and ate their Wheaties. 880 00:36:24,917 --> 00:36:26,708 - We have spent, in this country, 881 00:36:26,792 --> 00:36:30,208 $100 billion correcting Y2K. 882 00:36:30,292 --> 00:36:32,500 Commerce secretary Bill Daley says it amounts 883 00:36:32,583 --> 00:36:34,625 to $65 per taxpayer. 884 00:36:34,708 --> 00:36:36,375 - Part of the reason why disasters didn't occur 885 00:36:36,458 --> 00:36:39,042 on Y2K was because the government 886 00:36:39,125 --> 00:36:41,375 and corporations realized the problem 887 00:36:41,458 --> 00:36:44,667 and spent months in intensive preparation for that moment. 888 00:36:44,750 --> 00:36:46,458 - It was a big deal, 889 00:36:46,542 --> 00:36:48,750 a lot of energy spent, a lot of fear... 890 00:36:48,833 --> 00:36:51,083 big nothing. 891 00:36:53,458 --> 00:36:55,542 - Good afternoon. 892 00:36:56,875 --> 00:36:59,708 Microsoft was founded 25 years ago, 893 00:36:59,792 --> 00:37:03,958 and I've had the same job as CEO during that twenty-- 894 00:37:04,042 --> 00:37:05,833 entire 25-year period. 895 00:37:05,917 --> 00:37:10,958 Today, Steve is going to step up to a new role, 896 00:37:11,042 --> 00:37:14,000 and he will be CEO of Microsoft. 897 00:37:14,083 --> 00:37:15,708 - By the time this trial was over, 898 00:37:15,792 --> 00:37:17,875 Microsoft wound up settling, 899 00:37:17,958 --> 00:37:21,750 but Microsoft was really, really chastened in the end 900 00:37:21,833 --> 00:37:23,875 by that long, grueling case. 901 00:37:23,958 --> 00:37:26,625 - Does the government's case against Microsoft 902 00:37:26,708 --> 00:37:30,125 have anything to do with this change in leadership? 903 00:37:30,208 --> 00:37:32,500 - No, absolutely not. If anything, 904 00:37:32,583 --> 00:37:34,958 this change underscores what a dynamic, 905 00:37:35,042 --> 00:37:38,708 competitive business we have, but it's not at all related. 906 00:37:38,792 --> 00:37:40,667 - Bill Gates had been very successful. 907 00:37:40,750 --> 00:37:42,333 He had an enormous amount of money. 908 00:37:42,417 --> 00:37:44,583 He may very well have thought that, 909 00:37:44,667 --> 00:37:46,500 given what he had already accomplished, 910 00:37:46,583 --> 00:37:49,750 the highest and best use of his remaining years 911 00:37:49,833 --> 00:37:52,750 was to spend that money helping humanity. 912 00:37:52,833 --> 00:37:54,667 - It was just a few months back 913 00:37:54,750 --> 00:37:57,750 if your company ended in ".com," it was a good thing. 914 00:37:57,833 --> 00:37:59,583 But at the end of this brutal week 915 00:37:59,667 --> 00:38:01,292 on Wall Street, a lot of analysts think 916 00:38:01,375 --> 00:38:03,042 the Internet bubble is ready to burst, 917 00:38:03,125 --> 00:38:04,917 and by this time next year 918 00:38:05,000 --> 00:38:08,375 a huge number of those dot-coms might be dot-gone. 919 00:38:08,458 --> 00:38:10,667 - A year ago, investors were so eager 920 00:38:10,750 --> 00:38:13,667 to buy into the Internet they were happily ignoring 921 00:38:13,750 --> 00:38:16,000 the traditional measures of success: 922 00:38:16,083 --> 00:38:18,083 sales, profits, and growth. 923 00:38:18,167 --> 00:38:20,250 But reality has now set in. 924 00:38:20,333 --> 00:38:23,000 - These upstarts didn't have any income. 925 00:38:23,083 --> 00:38:25,833 They're saying, "We are worth billions of dollars." 926 00:38:25,917 --> 00:38:27,917 Where's your revenue? They didn't have any. 927 00:38:28,000 --> 00:38:31,625 - When the venture capitalists stopped putting money in, 928 00:38:31,708 --> 00:38:33,792 you could time the bubble, you could say, 929 00:38:33,875 --> 00:38:37,917 "Ah, you know, if we all believe this fantasy, it works. 930 00:38:38,000 --> 00:38:42,458 If some of us stop believing, it's a prelude to its failure." 931 00:38:42,542 --> 00:38:45,708 - Most dot-com retail companies will be out of business 932 00:38:45,792 --> 00:38:48,667 by next year, eliminating 25,000 933 00:38:48,750 --> 00:38:51,417 out of 30,000 Internet companies. 934 00:38:51,500 --> 00:38:53,625 - What sort of message do you have 935 00:38:53,708 --> 00:38:56,833 for all of us, as we look at what's happening 936 00:38:56,917 --> 00:39:00,208 to the dot-com businesses and the stock market? 937 00:39:01,292 --> 00:39:04,458 - Don't invest in dot-coms? [laughter] 938 00:39:04,542 --> 00:39:07,000 - The Internet opened up a lot of things for people. 939 00:39:07,083 --> 00:39:08,833 It made things easier for people, 940 00:39:08,917 --> 00:39:11,667 and that didn't change, bubble or no bubble. 941 00:39:11,750 --> 00:39:14,500 - With more than a billion web pages out there-- 942 00:39:14,583 --> 00:39:16,875 millions of websites out there on the Internet-- 943 00:39:16,958 --> 00:39:18,583 it's no wonder the most common activity 944 00:39:18,667 --> 00:39:20,292 on the Web is still searching, 945 00:39:20,375 --> 00:39:22,667 trying to find the information you're looking for. 946 00:39:22,750 --> 00:39:24,250 There really hadn't been very much new 947 00:39:24,333 --> 00:39:25,917 in the search engine field for years, 948 00:39:26,000 --> 00:39:28,292 until something called Google came along. 949 00:39:28,375 --> 00:39:32,250 - A traditional search engine will take your search terms, 950 00:39:32,333 --> 00:39:33,708 and you'll see, "Oh, what pages 951 00:39:33,792 --> 00:39:35,000 have those search terms on them?" 952 00:39:35,083 --> 00:39:36,250 - Right. - Maybe, you know, 953 00:39:36,333 --> 00:39:37,500 how many times they occur. 954 00:39:37,583 --> 00:39:39,125 Google goes way beyond that. 955 00:39:39,208 --> 00:39:41,000 Google will say, "What do other web pages 956 00:39:41,083 --> 00:39:42,375 say about this page?" 957 00:39:42,458 --> 00:39:44,208 - Google captured the entire Web, 958 00:39:44,292 --> 00:39:46,833 and they made a map of what linked to what, 959 00:39:46,917 --> 00:39:49,250 and found things with an accuracy 960 00:39:49,333 --> 00:39:51,417 that no one imagined would be possible. 961 00:39:51,500 --> 00:39:54,417 - It turned out that Google, rather than Netscape, 962 00:39:54,500 --> 00:39:55,917 was the one that eclipsed Microsoft. 963 00:39:56,000 --> 00:39:57,333 And by the end of the decade, 964 00:39:57,417 --> 00:39:59,292 Netscape is basically gone, 965 00:39:59,375 --> 00:40:01,083 but Microsoft was, in fact, 966 00:40:01,167 --> 00:40:03,042 completely overtaken by exactly the thing 967 00:40:03,125 --> 00:40:04,875 that Bill was concerned about being overtaken by. 968 00:40:04,958 --> 00:40:06,917 Netscape and Google are part of the same thing, 969 00:40:07,000 --> 00:40:09,375 which was the ascendance of the Web. 970 00:40:09,458 --> 00:40:11,083 - The rate of change in our lives 971 00:40:11,167 --> 00:40:13,125 has grown faster and faster. 972 00:40:13,208 --> 00:40:15,500 The zeroes and ones of computer language 973 00:40:15,583 --> 00:40:19,000 are literally transforming every part of our lives. 974 00:40:19,083 --> 00:40:20,958 - When you have the little ones running around, 975 00:40:21,042 --> 00:40:23,333 to be able to go to my computer and grocery shop, 976 00:40:23,417 --> 00:40:25,000 it's incredible to be able to do that. 977 00:40:25,083 --> 00:40:27,583 - What I found was another world, 978 00:40:27,667 --> 00:40:30,667 a world of caring, concerned people. 979 00:40:30,750 --> 00:40:32,375 - Once you become familiar with it, 980 00:40:32,458 --> 00:40:35,125 it becomes a friend, a companion. 981 00:40:35,208 --> 00:40:39,208 - You have a sense of possibility 982 00:40:39,292 --> 00:40:41,792 that geography used to deny you. 983 00:40:41,875 --> 00:40:44,042 Without moving yourself, 984 00:40:44,125 --> 00:40:46,167 the world would come to you. 985 00:40:46,250 --> 00:40:49,375 - Any student could instantly call up the text or pictures 986 00:40:49,458 --> 00:40:51,375 from any book in the Smithsonian, 987 00:40:51,458 --> 00:40:53,750 or tap into a supercomputer from NASA. 988 00:40:53,833 --> 00:40:56,167 A specialist at a huge city hospital 989 00:40:56,250 --> 00:41:00,250 could help diagnose patients at small rural clinics anywhere. 990 00:41:00,333 --> 00:41:02,083 - The Web is incredibly exciting 991 00:41:02,167 --> 00:41:04,833 because it is the fulfillment of a lot of our dreams. 992 00:41:04,917 --> 00:41:07,542 that the computer would ultimately not be 993 00:41:07,625 --> 00:41:09,500 primarily a device for computation, 994 00:41:09,583 --> 00:41:12,875 but metamorphisize into a device for communication. 995 00:41:12,958 --> 00:41:15,542 - It is the equivalent of the Industrial Revolution. 996 00:41:15,625 --> 00:41:17,333 It is the equivalent of electricity. 997 00:41:17,417 --> 00:41:20,167 The changes are just so profound. 998 00:41:20,250 --> 00:41:21,958 - When we look back a hundred years from now, 999 00:41:22,042 --> 00:41:23,500 this is the point where we're gonna say, 1000 00:41:23,583 --> 00:41:25,292 "This is where everything changed." 1001 00:41:25,375 --> 00:41:27,625 - I wasn't prepared to translate that, 1002 00:41:27,708 --> 00:41:29,333 as I was doing that little tease. 1003 00:41:29,417 --> 00:41:30,958 - Oh, that's right. - That little mark, 1004 00:41:31,042 --> 00:41:32,458 with the "A" and then the ring around it. 1005 00:41:32,542 --> 00:41:34,208 - "At"? - See, that's what I said. 1006 00:41:34,292 --> 00:41:36,125 - Mm-hmm. - Katie said she thought 1007 00:41:36,208 --> 00:41:37,542 it was "about." - Yeah. 1008 00:41:37,625 --> 00:41:39,333 - Oh. - But I'd never heard it-- 1009 00:41:39,417 --> 00:41:40,750 - Or "around," or "about." - I'd never heard it said. 1010 00:41:40,833 --> 00:41:42,083 - I'd always seen the mark, 1011 00:41:42,167 --> 00:41:43,375 but never heard it said. - Yeah. 1012 00:41:43,458 --> 00:41:44,708 - And then it sounded stupid 1013 00:41:44,792 --> 00:41:46,333 when I said it-- "violence at NBC." 1014 00:41:46,417 --> 00:41:49,125 There it is! violence@nbc.ge.com. 1015 00:41:49,208 --> 00:41:51,917 I mean... - Well, Allison should know. 1016 00:41:52,000 --> 00:41:53,917 How do you say that, Allison? - What is Internet, anyway? 1017 00:41:54,000 --> 00:41:55,500 What, do you write to it, like mail? 1018 00:41:55,583 --> 00:41:57,500 - No, a lot of people use it and communicate-- 1019 00:41:57,583 --> 00:41:59,875 I guess they can communicate with NBC writers and producers. 1020 00:41:59,958 --> 00:42:02,583 Allison, can you explain what Internet is?