WEBVTT 00:00.000 --> 00:21.800 position:10%,start line:85% size:80%   >> I’m Jeff Bezos. 00:21.800 --> 00:24.030 align:left position:10%,start line:85% size:80% >> What is your claim to fame? >> I’m the founder of 00:24.030 --> 00:25.830 align:left position:10%,start line:85% size:80% Amazon.com. >> NARRATOR: From the 00:25.830 --> 00:28.800 align:left position:10%,start line:85% size:80% award-winning producers of “The Facebook Dilemma”. 00:28.800 --> 00:31.630 align:left position:10%,start line:85% size:80% >> Richest guy in the world. >> NARRATOR: FRONTLINE 00:31.630 --> 00:34.770 align:left position:10%,start line:85% size:80% investigates Amazon. >> Is Amazon taking over the 00:34.770 --> 00:37.670 align:left position:10%,start line:85% size:80% world a good thing? >> NARRATOR: Questioning those 00:37.670 --> 00:40.130 align:left position:10%,start line:85% size:80% who run the company... >> What would you say to someone 00:40.130 --> 00:43.230 align:left position:10%,start line:85% size:80% who feels as though humans are increasingly being treated like 00:43.230 --> 00:45.270 align:left position:10%,start line:85% size:80% robots? >> That’s not the experience 00:45.270 --> 00:47.670 align:left position:10%,start line:85% size:80% that I had in setting it up. >> NARRATOR: And those no longer 00:47.670 --> 00:49.870 align:left position:10%,start line:85% size:80% there. >> Most people would assume 00:49.870 --> 00:52.900 align:left position:10%,start line:85% size:80% there’s a pretty high safety standard on Amazon. 00:52.900 --> 00:54.270 align:left position:10%,start line:85% size:80% >> And that assumption would be incorrect. 00:54.270 --> 00:57.000 align:left position:10%,start line:85% size:80% >> The tools are not what I call battle tested. 00:57.000 --> 00:59.270 align:left position:10%,start line:85% size:80% >> Some people asking if Amazon is a monopoly. 00:59.270 --> 01:02.730 align:left position:10%,start line:85% size:80% >> The question for the democracy is, are we okay with 01:02.730 --> 01:06.070 align:left position:10%,start line:85% size:80% one company essentially winning capitalism? 01:06.070 --> 01:08.700 align:left position:10%,start line:85% size:80% >> How do you and Jeff think about the call to 01:08.700 --> 01:10.870 align:left position:10%,start line:85% size:80% break you guys up? >> Simply because the 01:10.870 --> 01:12.670 align:left position:10%,start line:85% size:80% company’s been successful doesn’t mean it’s 01:12.670 --> 01:14.430 align:left position:10%,start line:85% size:80% somehow too big. >> NARRATOR: Now on 01:14.430 --> 01:16.570 align:left position:10%,start line:85% size:80% FRONTLINE... >> Domination was very much the 01:16.570 --> 01:18.870 align:left position:10%,start line:85% size:80% idea. >> NARRATOR: “Amazon Empire”. 01:40.930 --> 01:43.900 align:left position:10%,start line:85% size:80% >> Jeff Bezos has already conquered the retail frontier. 01:43.900 --> 01:46.430 align:left position:10%,start line:85% size:80% Now he's got a plan to colonize the planets. 01:46.430 --> 01:48.400 align:left position:10%,start line:85% size:80% >> Bezos is laying out his plans for colonizing space. 01:48.400 --> 01:50.830 align:left position:10%,start line:85% size:80% >> Bezos is known for going big, and now he's literally shooting 01:50.830 --> 01:53.870 align:left position:10%,start line:85% size:80% for the moon. >> NARRATOR: In May of 2019, 01:53.870 --> 01:57.470 align:left position:10%,start line:85% size:80% Jeff Bezos, the richest person on the planet, unveiled his 01:57.470 --> 02:02.870 align:left position:10%,start line:85% size:80% latest invention. >> This is Blue Moon. 02:02.870 --> 02:06.730 align:left position:10%,start line:85% size:80% It's time to go back to the moon, this time to stay. 02:06.730 --> 02:09.270 align:left position:10%,start line:85% size:80% >> Jeff has said over and over again that the most important 02:09.270 --> 02:11.770 align:left position:10%,start line:85% size:80% work he's doing is work in space. 02:12.230 --> 02:15.200 align:left position:10%,start line:85% size:80% What he's built in Amazon is really important and really 02:15.200 --> 02:20.130 align:left position:10%,start line:85% size:80% interesting, and it's, it's revolutionized commerce. 02:20.130 --> 02:22.330 align:left position:10%,start line:85% size:80% But it's only revolutionized commerce. 02:22.870 --> 02:25.800 align:left position:10%,start line:85% size:80% >> NARRATOR: Bezos's plan is to chart a new course for the 02:25.800 --> 02:30.030 align:left position:10%,start line:85% size:80% future of humanity. >> Manufactured worlds rotated 02:30.030 --> 02:33.400 align:left position:10%,start line:85% size:80% to create artificial gravity with centrifugal force. 02:33.400 --> 02:37.370 align:left position:10%,start line:85% size:80% These are very large structures, miles on end. 02:37.370 --> 02:40.630 align:left position:10%,start line:85% size:80% And they hold a million people or more each. 02:40.630 --> 02:43.270 align:left position:10%,start line:85% size:80% >> NARRATOR: It's an idea he's had since he was a teenager. 02:43.270 --> 02:47.030 align:left position:10%,start line:85% size:80% >> This is me in high school. And I want to highlight this 02:47.030 --> 02:51.500 align:left position:10%,start line:85% size:80% quote: "The earth is finite, and if the world economy and 02:51.500 --> 02:56.470 align:left position:10%,start line:85% size:80% population is to keep expanding, space is the only way to go." 02:56.470 --> 02:59.830 align:left position:10%,start line:85% size:80% I still believe that. >> The way Jeff Bezos sees is it 02:59.830 --> 03:05.230 align:left position:10%,start line:85% size:80% is that consumerism is an example of how today's society 03:05.230 --> 03:08.230 align:left position:10%,start line:85% size:80% lives better than our parents did and our grandparents. 03:08.230 --> 03:12.130 align:left position:10%,start line:85% size:80% And he wants, you know, future generations to continue to have 03:12.130 --> 03:14.600 align:left position:10%,start line:85% size:80% an increasingly better lifestyle. 03:15.630 --> 03:18.130 align:left position:10%,start line:85% size:80% >> These are beautiful. People are going to want to live 03:18.130 --> 03:20.330 align:left position:10%,start line:85% size:80% here. >> NARRATOR: Bezos unveiled his 03:20.330 --> 03:23.670 align:left position:10%,start line:85% size:80% extra-terrestrial plans at a time of growing concern about 03:23.670 --> 03:27.030 align:left position:10%,start line:85% size:80% the empire he's built here on earth. 03:27.030 --> 03:29.870 align:left position:10%,start line:85% size:80% >> Amazon is the great disrupter, from books to retail 03:29.870 --> 03:31.970 align:left position:10%,start line:85% size:80% to grocery stores. >> NARRATOR: For more than 25 03:31.970 --> 03:35.970 align:left position:10%,start line:85% size:80% years, Jeff Bezos has been disrupting and transforming 03:35.970 --> 03:38.500 align:left position:10%,start line:85% size:80% almost every aspect of our modern lives. 03:38.900 --> 03:42.200 align:left position:10%,start line:85% size:80% >> Once you start connecting the dots, you see that Amazon is 03:42.200 --> 03:45.370 align:left position:10%,start line:85% size:80% building all of the invisible infrastructure for our futures. 03:45.370 --> 03:47.830 align:left position:10%,start line:85% size:80% >> Amazon announced a healthcare partnership... 03:47.830 --> 03:50.030 align:left position:10%,start line:85% size:80% >> Amazon is helping the C.I.A. build a secure cloud... 03:50.030 --> 03:52.500 align:left position:10%,start line:85% size:80% >> How much of the internet do you run? 03:52.500 --> 03:55.830 align:left position:10%,start line:85% size:80% >> That's a good question, um, it's a lot, though. 03:56.130 --> 03:59.670 align:left position:10%,start line:85% size:80% >> NARRATOR: But in recent years, Amazon-- and Bezos-- have 03:59.670 --> 04:03.130 align:left position:10%,start line:85% size:80% come under scrutiny for their aggressive tactics and expanding 04:03.130 --> 04:06.000 align:left position:10%,start line:85% size:80% power. (Bezos laughing) 04:06.770 --> 04:12.000 align:left position:10%,start line:85% size:80% >> Everything that is admirable about Amazon is also something 04:12.000 --> 04:17.730 align:left position:10%,start line:85% size:80% that we should fear about it. >> NARRATOR: For the past year, 04:17.730 --> 04:22.100 align:left position:10%,start line:85% size:80% we've been investigating how Jeff Bezos built his empire-- 04:22.100 --> 04:26.870 align:left position:10%,start line:85% size:80% and at what cost. >> And so think about this. 04:26.870 --> 04:33.670 align:left position:10%,start line:85% size:80% Big things start small. ♪ ♪ 04:42.700 --> 04:45.470 align:left position:10%,start line:85% size:80% >> NARRATOR: Jeff Bezos's empire has its roots not in Silicon 04:45.470 --> 04:49.400 align:left position:10%,start line:85% size:80% Valley, but on Wall Street. That's where the young Princeton 04:49.400 --> 04:52.530 align:left position:10%,start line:85% size:80% graduate went to work in the early 1990s, at a secretive 04:52.530 --> 04:56.330 align:left position:10%,start line:85% size:80% hedge fund called D.E. Shaw. 04:56.330 --> 05:00.700 align:left position:10%,start line:85% size:80% >> David Shaw was the one who revolutionized Wall Street by 05:00.700 --> 05:05.270 align:left position:10%,start line:85% size:80% introducing data. And I think Jeff really embraced 05:05.270 --> 05:10.000 align:left position:10%,start line:85% size:80% that, that idea that, "Hey, if you have data, ultimately, you 05:10.000 --> 05:14.500 align:left position:10%,start line:85% size:80% win." >> One of the things that David 05:14.500 --> 05:17.530 align:left position:10%,start line:85% size:80% Shaw asked Jeff Bezos to do was to go and investigate new 05:17.530 --> 05:20.870 align:left position:10%,start line:85% size:80% businesses, and in particular this new thing in the early 05:20.870 --> 05:24.470 align:left position:10%,start line:85% size:80% '90s called the World Wide Web. (dial-up modem connecting) 05:24.470 --> 05:26.330 align:left position:10%,start line:85% size:80% >> We all know that a communications revolution is 05:26.330 --> 05:28.670 align:left position:10%,start line:85% size:80% underway in this country. >> What is the internet? 05:28.670 --> 05:30.630 align:left position:10%,start line:85% size:80% >> It's sort of the mother of all networks. 05:30.630 --> 05:34.130 align:left position:10%,start line:85% size:80% >> It's information highways. >> It's kind of like your remote 05:34.130 --> 05:37.700 align:left position:10%,start line:85% size:80% control to the world. >> NARRATOR: Bezos was quick to 05:37.700 --> 05:41.670 align:left position:10%,start line:85% size:80% see the untapped potential of the new digital landscape and 05:41.670 --> 05:45.830 align:left position:10%,start line:85% size:80% was determined to get in on it. >> I came across this startling 05:45.830 --> 05:49.700 align:left position:10%,start line:85% size:80% statistic that web usage was growing at 2,300% a year. 05:49.700 --> 05:53.030 align:left position:10%,start line:85% size:80% So, I decided I would try and find a business plan that made 05:53.030 --> 05:56.170 align:left position:10%,start line:85% size:80% sense in the context of that growth, and I picked books as 05:56.170 --> 05:58.970 align:left position:10%,start line:85% size:80% the first best product to sell online. 05:58.970 --> 06:04.170 align:left position:10%,start line:85% size:80% ♪ ♪ Because books are incredibly 06:04.170 --> 06:07.100 align:left position:10%,start line:85% size:80% unusual in one respect, and that is that there are more 06:07.100 --> 06:10.700 align:left position:10%,start line:85% size:80% items in the book category than there are items in any other 06:10.700 --> 06:13.370 align:left position:10%,start line:85% size:80% category by far. So, when you have that many 06:13.370 --> 06:17.800 align:left position:10%,start line:85% size:80% items, you can literally build a store online that couldn't exist 06:17.800 --> 06:20.900 align:left position:10%,start line:85% size:80% any other way. >> NARRATOR: The store he was 06:20.900 --> 06:25.400 align:left position:10%,start line:85% size:80% imagining didn't exist, so he decided to build it himself. 06:25.400 --> 06:31.670 align:left position:10%,start line:85% size:80% ♪ ♪ >> The reaction to Jeff's idea 06:31.670 --> 06:35.500 align:left position:10%,start line:85% size:80% to start selling books on the internet was pretty incredulous, 06:35.500 --> 06:37.400 align:left position:10%,start line:85% size:80% you know, from a lot of the people close to him. 06:37.400 --> 06:40.370 align:left position:10%,start line:85% size:80% His mom tried to convince him to just do it at night or over the 06:40.370 --> 06:42.230 align:left position:10%,start line:85% size:80% weekends. She didn't want to see him give 06:42.230 --> 06:48.670 align:left position:10%,start line:85% size:80% up his job. >> Jeff called, and he told me 06:48.670 --> 06:50.870 align:left position:10%,start line:85% size:80% that he and MacKenzie were quitting their jobs, and they 06:50.870 --> 06:52.870 align:left position:10%,start line:85% size:80% were moving to Seattle and starting a company. 06:52.870 --> 06:54.570 align:left position:10%,start line:85% size:80% I said, "Great, well, what are you going to do?" 06:54.570 --> 06:56.270 align:left position:10%,start line:85% size:80% He said, "We're going to sell books." 06:56.270 --> 06:58.270 align:left position:10%,start line:85% size:80% I said, "Nice." He said, "On the internet." 06:58.270 --> 07:01.770 align:left position:10%,start line:85% size:80% I said, "Oh. Jeff, why will anybody buy 07:01.770 --> 07:04.830 align:left position:10%,start line:85% size:80% anything from you?" And he said, "Well, we're going 07:04.830 --> 07:07.600 align:left position:10%,start line:85% size:80% to have more books than anybody else." 07:09.600 --> 07:11.670 align:left position:10%,start line:85% size:80% >> NARRATOR: One of the first names Bezos considered for his 07:11.670 --> 07:18.000 align:left position:10%,start line:85% size:80% new website was Relentless.com. >> Why "Relentless?" 07:18.000 --> 07:20.930 align:left position:10%,start line:85% size:80% >> Relentless meant, "We move on no matter what." 07:21.570 --> 07:24.430 align:left position:10%,start line:85% size:80% He ultimately, obviously, decided that "Relentless" wasn't 07:24.430 --> 07:28.970 align:left position:10%,start line:85% size:80% quite the right fit. Amazon, earth's largest river, 07:28.970 --> 07:31.270 align:left position:10%,start line:85% size:80% was. Amazon means gigantic. 07:32.170 --> 07:34.600 align:left position:10%,start line:85% size:80% >> In terms of relentlessness, stopping at 07:34.600 --> 07:39.570 align:left position:10%,start line:85% size:80% nothing, that's, is that an apt description of Jeff? 07:40.230 --> 07:43.330 align:left position:10%,start line:85% size:80% >> No. It's not that Jeff stops at 07:43.330 --> 07:47.670 align:left position:10%,start line:85% size:80% nothing, it's that when Jeff sets his mind on a goal that he 07:47.670 --> 07:53.100 align:left position:10%,start line:85% size:80% thinks he can achieve, he won't stop until he's proven wrong 07:53.100 --> 07:57.830 align:left position:10%,start line:85% size:80% or until he achieves it. ♪ ♪ 07:57.830 --> 08:01.070 align:left position:10%,start line:85% size:80% >> Jeff and MacKenzie had rented a house in Bellevue. 08:01.070 --> 08:04.770 align:left position:10%,start line:85% size:80% And then we moved to a small, second-floor office in the 08:04.770 --> 08:08.030 align:left position:10%,start line:85% size:80% south part of Seattle. >> NARRATOR: Shel Kaphan was 08:08.030 --> 08:13.970 align:left position:10%,start line:85% size:80% Amazon employee number one, one of nine former Amazon insiders 08:13.970 --> 08:17.830 align:left position:10%,start line:85% size:80% who agreed to talk on camera. >> What the company is now was 08:17.830 --> 08:22.370 align:left position:10%,start line:85% size:80% nowhere in my wildest imagination. 08:22.370 --> 08:26.170 align:left position:10%,start line:85% size:80% Nowhere, so, the fact that it could have the-the kind of 08:26.170 --> 08:32.230 align:left position:10%,start line:85% size:80% position in the world that it has now, I had no clue. 08:32.230 --> 08:37.770 align:left position:10%,start line:85% size:80% >> NARRATOR: In July 1995, Amazon.com went live. 08:37.770 --> 08:42.070 align:left position:10%,start line:85% size:80% >> It was an incredible novelty, it was tiny and obscure, and 08:42.070 --> 08:45.970 align:left position:10%,start line:85% size:80% it's very hard to imagine, but the entire universe that Amazon 08:45.970 --> 08:50.470 align:left position:10%,start line:85% size:80% now dominates did not exist. >> Amazon.com, this virtual 08:50.470 --> 08:53.500 align:left position:10%,start line:85% size:80% shop claims to be the world's largest bookstore. 08:53.500 --> 08:56.500 align:left position:10%,start line:85% size:80% >> NARRATOR: It didn't take long for Bezos's vision to prove 08:56.500 --> 08:59.030 align:left position:10%,start line:85% size:80% prescient. >> What makes us different is 08:59.030 --> 09:02.830 align:left position:10%,start line:85% size:80% vast selection, convenience-- we deliver right to the desktop. 09:02.830 --> 09:05.670 align:left position:10%,start line:85% size:80% If our catalog were printed on paper, it would be the size of 09:05.670 --> 09:11.500 align:left position:10%,start line:85% size:80% seven New York City phonebooks. ♪ ♪ 09:11.500 --> 09:14.370 align:left position:10%,start line:85% size:80% >> NARRATOR: The company quickly outgrew the garage and soon had 09:14.370 --> 09:19.670 align:left position:10%,start line:85% size:80% more than 50 employees. In 1996, James Marcus applied to 09:19.670 --> 09:24.200 align:left position:10%,start line:85% size:80% be number 55. >> There was a very palpable 09:24.200 --> 09:28.500 align:left position:10%,start line:85% size:80% excitement in the air at this place, and of course at this 09:28.500 --> 09:31.500 align:left position:10%,start line:85% size:80% point Jeff Bezos was the first person to interview every 09:31.500 --> 09:34.230 align:left position:10%,start line:85% size:80% prospective employee. So I was ushered into his 09:34.230 --> 09:37.600 align:left position:10%,start line:85% size:80% office. He wanted to see how fast you 09:37.600 --> 09:39.900 align:left position:10%,start line:85% size:80% were on your feet. He also always wanted to know 09:39.900 --> 09:42.070 align:left position:10%,start line:85% size:80% your S.A.T. scores. >> He wanted to know 09:42.070 --> 09:43.830 align:left position:10%,start line:85% size:80% your S.A.T. scores? >> Every time, yes. 09:43.830 --> 09:45.830 align:left position:10%,start line:85% size:80% >> How old were you at the time? 09:45.830 --> 09:50.500 align:left position:10%,start line:85% size:80% >> I was 36 or 37. >> This is the original sign 09:50.500 --> 09:54.900 align:left position:10%,start line:85% size:80% that I made for Amazon.com. Blue spray paint on white poster 09:54.900 --> 09:57.630 align:left position:10%,start line:85% size:80% board. >> Jeff wasn't a figure out of 09:57.630 --> 10:00.470 align:left position:10%,start line:85% size:80% folklore at that point, he was not the-the wealthiest man in 10:00.470 --> 10:02.630 align:left position:10%,start line:85% size:80% the world. >> Here's my computer, 10:02.630 --> 10:07.700 align:left position:10%,start line:85% size:80% Amazon.com up on the screen. "Hello, Jeff Bezos." 10:07.700 --> 10:10.930 align:left position:10%,start line:85% size:80% >> He was a small, nondescript, sandy-haired man sitting at a 10:10.930 --> 10:15.130 align:left position:10%,start line:85% size:80% desk with quite a large and eruptive laugh. 10:15.130 --> 10:21.870 align:left position:10%,start line:85% size:80% (laughing in multiple scenes) >> But he wasn't threatening, he 10:21.870 --> 10:25.230 align:left position:10%,start line:85% size:80% was a normal guy to a sort of amazing extent. 10:25.230 --> 10:31.200 align:left position:10%,start line:85% size:80% >> HAL 9000 hat, very important. Hal and I share a birthday, 10:31.200 --> 10:34.570 align:left position:10%,start line:85% size:80% we're both born on January 12. >> It belied, you know, an 10:34.570 --> 10:38.430 align:left position:10%,start line:85% size:80% enormous, Napoleonic ambition. >> One of the people I really 10:38.430 --> 10:42.100 align:left position:10%,start line:85% size:80% like, Thomas Edison, here's a model of his original light 10:42.100 --> 10:44.370 align:left position:10%,start line:85% size:80% bulb. He's famous for saying, "One 10:44.370 --> 10:48.600 align:left position:10%,start line:85% size:80% percent inspiration, 99 percent perspiration." 10:48.600 --> 10:51.470 align:left position:10%,start line:85% size:80% (laughs) It turns out ideas are the easy 10:51.470 --> 10:54.770 align:left position:10%,start line:85% size:80% part, execution is everything. >> Domination was on Jeff's mind 10:54.770 --> 10:56.670 align:left position:10%,start line:85% size:80% from the beginning. One of his sort of 10:56.670 --> 10:59.500 align:left position:10%,start line:85% size:80% second-in-command people said to me, "You have to understand 10:59.500 --> 11:02.770 align:left position:10%,start line:85% size:80% that Jeff wants to sell many more things than books. 11:02.770 --> 11:06.270 align:left position:10%,start line:85% size:80% And Jeff's idea is that in the near-distant future, you could 11:06.270 --> 11:09.330 align:left position:10%,start line:85% size:80% buy a kayak from Amazon. And if, and after you brought 11:09.330 --> 11:12.730 align:left position:10%,start line:85% size:80% the kayak, you could figure out good places to kayak and buy 11:12.730 --> 11:16.700 align:left position:10%,start line:85% size:80% travel services from Amazon." So, those ambitions were very 11:16.700 --> 11:19.830 align:left position:10%,start line:85% size:80% clear, and this was very early on. 11:19.830 --> 11:22.830 align:left position:10%,start line:85% size:80% But he was clearly thinking in those terms from the get-go. 11:22.830 --> 11:24.800 align:left position:10%,start line:85% size:80% >> How did that ring to you at the time? 11:24.800 --> 11:27.270 align:left position:10%,start line:85% size:80% >> A little bit exciting and a little bit nutty. 11:27.270 --> 11:30.300 align:left position:10%,start line:85% size:80% >> Amazon.com, very good website. 11:30.300 --> 11:34.470 align:left position:10%,start line:85% size:80% You should really try it. (Bezos laughs) 11:34.470 --> 11:37.400 align:left position:10%,start line:85% size:80% >> If you signed on to work at a-a kind of futuristic 11:37.400 --> 11:41.130 align:left position:10%,start line:85% size:80% bookstore, and the guy who owned it was suddenly talking 11:41.130 --> 11:44.970 align:left position:10%,start line:85% size:80% about selling, you know, every object in the universe, you just 11:44.970 --> 11:46.970 align:left position:10%,start line:85% size:80% weren't sure how seriously to take it. 11:46.970 --> 11:54.300 align:left position:10%,start line:85% size:80% (Bezos laughing) (Bezos screaming playfully) 11:54.300 --> 11:57.430 align:left position:10%,start line:85% size:80% >> NARRATOR: Though his public image was often unserious... 11:57.430 --> 12:01.370 align:left position:10%,start line:85% size:80% >> That was awesome! >> NARRATOR: Inside the company, 12:01.370 --> 12:04.970 align:left position:10%,start line:85% size:80% Bezos was a hard-charging manager relentlessly focused on 12:04.970 --> 12:07.800 align:left position:10%,start line:85% size:80% the principle that would make Amazon one of the most trusted 12:07.800 --> 12:12.930 align:left position:10%,start line:85% size:80% brands in the world: the customer always comes first. 12:12.930 --> 12:15.070 align:left position:10%,start line:85% size:80% >> This culture of customer obsession... 12:15.070 --> 12:18.430 align:left position:10%,start line:85% size:80% Obsessive focus on customer... Obsesses over our customers... 12:18.430 --> 12:22.700 align:left position:10%,start line:85% size:80% Totally obsessing over the customer experience. 12:22.700 --> 12:25.300 align:left position:10%,start line:85% size:80% >> We used to call it customer ecstasy. 12:25.300 --> 12:29.500 align:left position:10%,start line:85% size:80% It means building, delivering, focusing on your customer. 12:29.500 --> 12:32.730 align:left position:10%,start line:85% size:80% And we did it, you know, in the very, very early days at every 12:32.730 --> 12:35.730 align:left position:10%,start line:85% size:80% stage. >> NARRATOR: Jennifer Cast was 12:35.730 --> 12:40.100 align:left position:10%,start line:85% size:80% there in the early days and is one of six top Amazon executives 12:40.100 --> 12:42.500 align:left position:10%,start line:85% size:80% the company put forward to speak to us. 12:43.200 --> 12:46.700 align:left position:10%,start line:85% size:80% >> Customer obsession was our North Star. 12:46.700 --> 12:50.200 align:left position:10%,start line:85% size:80% And so, you know, it was a place where we knew we were a part of 12:50.200 --> 12:53.400 align:left position:10%,start line:85% size:80% something that was new, the internet. 12:53.870 --> 12:56.530 align:left position:10%,start line:85% size:80% There was an excitement that we were doing something that hadn't 12:56.530 --> 12:59.470 align:left position:10%,start line:85% size:80% been done before. It was exhilarating. 12:59.470 --> 13:03.930 align:left position:10%,start line:85% size:80% We were all aligned around building for customers. 13:03.930 --> 13:05.770 align:left position:10%,start line:85% size:80% >> Hey, you guys. >> Hey. 13:05.770 --> 13:08.430 align:left position:10%,start line:85% size:80% (Bezos laughs) >> I've heard there was 13:08.430 --> 13:11.170 align:left position:10%,start line:85% size:80% an empty chair that would often be put at meetings. 13:11.170 --> 13:13.000 align:left position:10%,start line:85% size:80% >> Yeah. >> Who was in the empty 13:13.000 --> 13:14.770 align:left position:10%,start line:85% size:80% chair? >> Yeah, so that empty chair was 13:14.770 --> 13:18.400 align:left position:10%,start line:85% size:80% there to remind us all to understand the customer, have 13:18.400 --> 13:21.270 align:left position:10%,start line:85% size:80% empathy for the customer, understand the details of the 13:21.270 --> 13:24.400 align:left position:10%,start line:85% size:80% customer experience. The customer isn't there, we 13:24.400 --> 13:27.600 align:left position:10%,start line:85% size:80% have to bring forward the voice of the customer. 13:27.600 --> 13:29.970 align:left position:10%,start line:85% size:80% (phone ringing) >> Thank you for calling 13:29.970 --> 13:31.900 align:left position:10%,start line:85% size:80% Amazon.com. >> NARRATOR: And Bezos quickly 13:31.900 --> 13:36.930 align:left position:10%,start line:85% size:80% learned that in this new online world, he could understand 13:36.930 --> 13:39.530 align:left position:10%,start line:85% size:80% exactly how customers were behaving. 13:39.530 --> 13:41.770 align:left position:10%,start line:85% size:80% >> All orders do need to be placed online. 13:41.770 --> 13:44.530 align:left position:10%,start line:85% size:80% >> It was made clear from the beginning that data collection 13:44.530 --> 13:47.100 align:left position:10%,start line:85% size:80% was also one of Amazon's businesses. 13:47.100 --> 13:49.570 align:left position:10%,start line:85% size:80% All customer behavior that flowed through the site was 13:49.570 --> 13:52.530 align:left position:10%,start line:85% size:80% recorded and tracked. And that itself was a valuable 13:52.530 --> 13:55.170 align:left position:10%,start line:85% size:80% commodity. >> Have you visited our website? 13:55.170 --> 13:58.870 align:left position:10%,start line:85% size:80% >> We could track how a customer navigated through the site. 13:59.600 --> 14:02.470 align:left position:10%,start line:85% size:80% So we could see what you looked at, we could also see what you 14:02.470 --> 14:05.630 align:left position:10%,start line:85% size:80% paused at, we could see what you put in your basket but didn't 14:05.630 --> 14:07.800 align:left position:10%,start line:85% size:80% order, we could see what you put in your basket and did order. 14:08.270 --> 14:10.670 align:left position:10%,start line:85% size:80% So that's when we started realizing, "Man, this is rich. 14:10.670 --> 14:13.130 align:left position:10%,start line:85% size:80% This is rich, rich, rich." And so we've used it for 14:13.130 --> 14:15.000 align:left position:10%,start line:85% size:80% everything. >> What do you do with that 14:15.000 --> 14:17.500 align:left position:10%,start line:85% size:80% information? >> That's the data that allows 14:17.500 --> 14:21.900 align:left position:10%,start line:85% size:80% us to predict, or try to predict, what books that you 14:21.900 --> 14:25.300 align:left position:10%,start line:85% size:80% would like that you haven't discovered yet. 14:25.300 --> 14:28.100 align:left position:10%,start line:85% size:80% >> NARRATOR: Bezos treated the site as a laboratory, where he 14:28.100 --> 14:32.000 align:left position:10%,start line:85% size:80% studied customer behavior along with his chief scientist Andreas 14:32.000 --> 14:36.070 align:left position:10%,start line:85% size:80% Weigend. >> I was shocked to see how 14:36.070 --> 14:41.170 align:left position:10%,start line:85% size:80% predictable people are. If you take the time of the day 14:41.170 --> 14:45.600 align:left position:10%,start line:85% size:80% into account, if you take maybe when they were last on the site, 14:45.600 --> 14:48.370 align:left position:10%,start line:85% size:80% how long they were on the site last time, how long they're on 14:48.370 --> 14:52.130 align:left position:10%,start line:85% size:80% the site today, you know what they're falling for. 14:52.830 --> 14:59.030 align:left position:10%,start line:85% size:80% >> Whoever owns, collects, the data, if you have access to it 14:59.030 --> 15:02.670 align:left position:10%,start line:85% size:80% and rights to data, then you are king. 15:02.670 --> 15:07.270 align:left position:10%,start line:85% size:80% It's all about the data. Everything. 15:07.930 --> 15:10.870 align:left position:10%,start line:85% size:80% >> One of the most fascinating kind of tools we have at our 15:10.870 --> 15:15.030 align:left position:10%,start line:85% size:80% disposal is the ability to do active experiments. 15:15.030 --> 15:18.870 align:left position:10%,start line:85% size:80% It's, you know, it's kind of this huge laboratory. 15:18.870 --> 15:22.100 align:left position:10%,start line:85% size:80% >> We did not think about it as exploiting, we thought about 15:22.100 --> 15:25.270 align:left position:10%,start line:85% size:80% helping people make better decisions. 15:25.270 --> 15:28.130 align:left position:10%,start line:85% size:80% >> I was starting to feel that that was less respectful toward 15:28.130 --> 15:31.530 align:left position:10%,start line:85% size:80% the consumer, who was, after all, supposed to be our god, the 15:31.530 --> 15:35.570 align:left position:10%,start line:85% size:80% person whose ecstasy was our very reason for being. 15:35.570 --> 15:39.400 align:left position:10%,start line:85% size:80% And it was closer to getting a cow into a milking stall and 15:39.400 --> 15:42.000 align:left position:10%,start line:85% size:80% extracting as many pails as possible during each visit. 15:42.370 --> 15:45.200 align:left position:10%,start line:85% size:80% And that felt a little more unsavory. 15:45.200 --> 15:47.600 align:left position:10%,start line:85% size:80% But that was the business of Amazon. 15:47.600 --> 15:51.530 align:left position:10%,start line:85% size:80% >> Amazon has added 880,000 new customers... 15:51.530 --> 15:53.830 align:left position:10%,start line:85% size:80% >> NARRATOR: While Bezos was using these insights to bring 15:53.830 --> 15:56.070 align:left position:10%,start line:85% size:80% more and more customers into Amazon... 15:56.070 --> 15:58.270 align:left position:10%,start line:85% size:80% >> The number of customers who use the website has increased 15:58.270 --> 16:00.570 align:left position:10%,start line:85% size:80% fourfold... >> NARRATOR: There was one thing 16:00.570 --> 16:03.970 align:left position:10%,start line:85% size:80% he hadn't done yet. >> The company's never made a 16:03.970 --> 16:06.900 align:left position:10%,start line:85% size:80% profit. >> That's right. 16:06.900 --> 16:09.170 align:left position:10%,start line:85% size:80% >> Now, why... how does that... why... how does that...? 16:09.170 --> 16:10.930 align:left position:10%,start line:85% size:80% >> It seems like a new math, doesn't it? 16:10.930 --> 16:12.870 align:left position:10%,start line:85% size:80% >> It does. >> NARRATOR: Bezos would spend 16:12.870 --> 16:17.270 align:left position:10%,start line:85% size:80% years losing money trying to beat his competition, and he 16:17.270 --> 16:20.470 align:left position:10%,start line:85% size:80% convinced investors to go along with it. 16:21.900 --> 16:26.170 align:left position:10%,start line:85% size:80% >> One of Jeff Bezos' greatest accomplishments has been his 16:26.170 --> 16:29.830 align:left position:10%,start line:85% size:80% ability to get Wall Street to accept the fact the first 16:29.830 --> 16:32.630 align:left position:10%,start line:85% size:80% 20-some years, Amazon wasn't going to be very profitable. 16:32.630 --> 16:34.530 align:left position:10%,start line:85% size:80% And that's okay because they're building infrastructure that 16:34.530 --> 16:38.770 align:left position:10%,start line:85% size:80% will create huge opportunities for them to gain scale and gain 16:38.770 --> 16:43.270 align:left position:10%,start line:85% size:80% customers and gain business. >> NARRATOR: He spelled it out 16:43.270 --> 16:45.700 align:left position:10%,start line:85% size:80% in a letter to shareholders after the company first went 16:45.700 --> 16:50.800 align:left position:10%,start line:85% size:80% public: "It's all about the long term," he wrote, rather 16:50.800 --> 16:54.470 align:left position:10%,start line:85% size:80% than short-term profits or Wall Street reactions. 16:55.030 --> 17:00.270 align:left position:10%,start line:85% size:80% >> He essentially says, "We are going to forego profits 17:00.270 --> 17:03.630 align:left position:10%,start line:85% size:80% in order to take market share. That our strategy is to lose 17:03.630 --> 17:07.630 align:left position:10%,start line:85% size:80% money, which enables us then to put other companies out of 17:07.630 --> 17:09.830 align:left position:10%,start line:85% size:80% business who can't afford to lose money." 17:10.070 --> 17:12.470 align:left position:10%,start line:85% size:80% >> NARRATOR: That strategy wouldn't sit well with critics 17:12.470 --> 17:16.370 align:left position:10%,start line:85% size:80% like Stacy Mitchell, who advocates for small businesses. 17:16.370 --> 17:18.900 align:left position:10%,start line:85% size:80% >> In essence, at the very beginning, he's signaling to 17:18.900 --> 17:22.830 align:left position:10%,start line:85% size:80% shareholders, "I have a strategy to monopolize the market, and 17:22.830 --> 17:25.130 align:left position:10%,start line:85% size:80% that's going to reward you, but it's going to be far down the 17:25.130 --> 17:27.800 align:left position:10%,start line:85% size:80% road, and will you come along with me?" 17:27.800 --> 17:31.930 align:left position:10%,start line:85% size:80% And they said yes. >> NARRATOR: Investors also 17:31.930 --> 17:37.670 align:left position:10%,start line:85% size:80% recognized Bezos' essential advantage over physical stores, 17:37.670 --> 17:40.500 align:left position:10%,start line:85% size:80% which had to charge their customers sales tax, unlike 17:40.500 --> 17:44.500 align:left position:10%,start line:85% size:80% online businesses. >> So, not collecting sales tax 17:44.500 --> 17:48.000 align:left position:10%,start line:85% size:80% gave Amazon a big leg up over bricks and mortar retailers. 17:48.000 --> 17:51.070 align:left position:10%,start line:85% size:80% And that was central to their early strategy of gaining 17:51.070 --> 17:52.870 align:left position:10%,start line:85% size:80% market share as quickly as they can. 17:53.370 --> 17:56.170 align:left position:10%,start line:85% size:80% >> What booksellers were saying to me is that, "This is driving 17:56.170 --> 17:58.600 align:left position:10%,start line:85% size:80% my customers to Amazon. They'll come into the store, 17:58.600 --> 18:01.330 align:left position:10%,start line:85% size:80% they'll browse, they find what they want, but then they'll go 18:01.330 --> 18:05.100 align:left position:10%,start line:85% size:80% buy it on Amazon, because they can save that sales tax." 18:05.100 --> 18:08.600 align:left position:10%,start line:85% size:80% >> So it was a very irksome, early, big issue for the book 18:08.600 --> 18:10.730 align:left position:10%,start line:85% size:80% vendors, first of all, they were kind of the canaries in the 18:10.730 --> 18:13.500 align:left position:10%,start line:85% size:80% mine, so to speak, and then lots of other retailers. 18:13.500 --> 18:17.070 align:left position:10%,start line:85% size:80% ♪ ♪ >> Amazon has added thousands of 18:17.070 --> 18:19.970 align:left position:10%,start line:85% size:80% warehouse workers and three million square feet of space. 18:20.500 --> 18:23.300 align:left position:10%,start line:85% size:80% >> NARRATOR: Amazon's sales-tax advantage would be central to 18:23.300 --> 18:27.000 align:left position:10%,start line:85% size:80% its success as it expanded beyond books, into other 18:27.000 --> 18:29.070 align:left position:10%,start line:85% size:80% products. >> And we have a fantastic 18:29.070 --> 18:31.000 align:left position:10%,start line:85% size:80% selection of things you can look at. 18:31.000 --> 18:33.630 align:left position:10%,start line:85% size:80% Electronics and then of course toys. 18:33.630 --> 18:36.470 align:left position:10%,start line:85% size:80% Yeah, thank you, here is, we've got have the friendly Pokémon. 18:36.470 --> 18:39.800 align:left position:10%,start line:85% size:80% This is more than ten times the selection that you will find in 18:39.800 --> 18:42.470 align:left position:10%,start line:85% size:80% a typical, physical world software store. 18:42.470 --> 18:45.030 align:left position:10%,start line:85% size:80% >> NARRATOR: But Bezos was still a long way from his goal of 18:45.030 --> 18:49.000 align:left position:10%,start line:85% size:80% Amazon being the place where you could buy everything online. 18:49.000 --> 18:56.330 align:left position:10%,start line:85% size:80% (drills whirring) And he saw a way to achieve it. 18:56.330 --> 18:59.130 align:left position:10%,start line:85% size:80% >> Amazon could soon become the Walmart of the internet. 18:59.130 --> 19:01.600 align:left position:10%,start line:85% size:80% >> NARRATOR: There were thousands of businesses eager to 19:01.600 --> 19:04.500 align:left position:10%,start line:85% size:80% sell online. Bezos offered them a way to do 19:04.500 --> 19:06.800 align:left position:10%,start line:85% size:80% it. >> Amazon is transforming itself 19:06.800 --> 19:09.630 align:left position:10%,start line:85% size:80% from an online bookstore to an online mall. 19:09.630 --> 19:12.970 align:left position:10%,start line:85% size:80% >> NARRATOR: He transformed Amazon into a retail platform 19:12.970 --> 19:16.670 align:left position:10%,start line:85% size:80% where anyone could sell their goods to his customers and 19:16.670 --> 19:20.270 align:left position:10%,start line:85% size:80% invited thousands of other businesses to be a part of it. 19:20.270 --> 19:24.070 align:left position:10%,start line:85% size:80% >> It's the easiest place for anybody, small or large, who 19:24.070 --> 19:27.630 align:left position:10%,start line:85% size:80% wants to set up shop online to sell online, because they can 19:27.630 --> 19:30.770 align:left position:10%,start line:85% size:80% access our 12 million-plus customers. 19:30.770 --> 19:35.430 align:left position:10%,start line:85% size:80% Anybody, all comers. >> We're talking about hundreds 19:35.430 --> 19:38.170 align:left position:10%,start line:85% size:80% of thousands of companies with literally tens of millions of 19:38.170 --> 19:42.500 align:left position:10%,start line:85% size:80% products. >> NARRATOR: Name-brand stores 19:42.500 --> 19:46.370 align:left position:10%,start line:85% size:80% started selling on Bezos's platform, and so did tens of 19:46.370 --> 19:48.600 align:left position:10%,start line:85% size:80% thousands of small entrepreneurs. 19:49.930 --> 19:53.400 align:left position:10%,start line:85% size:80% >> Everyone knew Amazon.com. The only people that knew 19:53.400 --> 19:56.430 align:left position:10%,start line:85% size:80% SuperDuperHoops.com were the ones that were searching to buy 19:56.430 --> 19:58.830 align:left position:10%,start line:85% size:80% a basketball hoop and saw our name on an advertisement. 19:59.770 --> 20:01.830 align:left position:10%,start line:85% size:80% To us it was really a no-brainer. 20:01.830 --> 20:05.000 align:left position:10%,start line:85% size:80% We knew that we would, you know, increase our sales. 20:05.000 --> 20:07.700 align:left position:10%,start line:85% size:80% First year we did 100,000, next year we did a million, we did 20:07.700 --> 20:10.330 align:left position:10%,start line:85% size:80% two million, four million, we were doubling every year in the 20:10.330 --> 20:12.600 align:left position:10%,start line:85% size:80% early days. >> NARRATOR: It was great for 20:12.600 --> 20:16.100 align:left position:10%,start line:85% size:80% the companies-- and even greater for Jeff Bezos. 20:16.100 --> 20:19.670 align:left position:10%,start line:85% size:80% >> Amazon has become the most recognizable name in e-commerce. 20:19.670 --> 20:21.930 align:left position:10%,start line:85% size:80% >> NARRATOR: Not only would he take a cut of everything other 20:21.930 --> 20:26.270 align:left position:10%,start line:85% size:80% businesses sold, he'd also keep his own store on the platform, 20:26.270 --> 20:30.030 align:left position:10%,start line:85% size:80% competing against everyone else in the marketplace he owned and 20:30.030 --> 20:33.870 align:left position:10%,start line:85% size:80% controlled. >> He owns the Main Street. 20:33.870 --> 20:36.970 align:left position:10%,start line:85% size:80% He has the Main Street real estate. 20:36.970 --> 20:40.400 align:left position:10%,start line:85% size:80% Not just one building on the corner, the entire Main Street. 20:40.400 --> 20:46.130 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: How Amazon would 20:46.130 --> 20:49.900 align:left position:10%,start line:85% size:80% wield its power over the online marketplace would eventually 20:49.900 --> 20:54.470 align:left position:10%,start line:85% size:80% become a question for government regulators, but early on, there 20:54.470 --> 20:57.900 align:left position:10%,start line:85% size:80% were indications. The first to see them were book 20:57.900 --> 21:03.330 align:left position:10%,start line:85% size:80% publishers. >> Amazon took over a large 21:03.330 --> 21:06.430 align:left position:10%,start line:85% size:80% market share of the publishing industry very, very fast. 21:06.430 --> 21:09.700 align:left position:10%,start line:85% size:80% They were very quickly in a position to demand concessions. 21:10.500 --> 21:12.330 align:left position:10%,start line:85% size:80% You know, I think that was a moment where publishers started 21:12.330 --> 21:15.900 align:left position:10%,start line:85% size:80% to realize, "Oh, wait a minute, like, we... they're our partner, 21:15.900 --> 21:19.470 align:left position:10%,start line:85% size:80% but they now have the beginnings of a boot on our 21:19.470 --> 21:23.470 align:left position:10%,start line:85% size:80% windpipe." >> NARRATOR: Inside the company, 21:23.470 --> 21:26.170 align:left position:10%,start line:85% size:80% they had launched a strategy that some called "the Gazelle 21:26.170 --> 21:30.000 align:left position:10%,start line:85% size:80% Project," because they'd heard Bezos wanted them to pursue 21:30.000 --> 21:33.500 align:left position:10%,start line:85% size:80% publishers the way a cheetah pursues a sickly gazelle. 21:34.200 --> 21:36.500 align:left position:10%,start line:85% size:80% >> Well, you don't go after the strongest. 21:36.500 --> 21:39.070 align:left position:10%,start line:85% size:80% It's like the cheetah. The cheetah looks for the weak, 21:39.070 --> 21:41.530 align:left position:10%,start line:85% size:80% looks for the sick, looks for the small, that's what you go 21:41.530 --> 21:43.930 align:left position:10%,start line:85% size:80% for. So don't start with, you know, 21:43.930 --> 21:46.500 align:left position:10%,start line:85% size:80% number one publisher. Start with number seven 21:46.500 --> 21:49.400 align:left position:10%,start line:85% size:80% publisher and then number six publisher, and by the time you 21:49.400 --> 21:53.730 align:left position:10%,start line:85% size:80% get to number three, two, and one, the noise has gone, gotten 21:53.730 --> 21:55.530 align:left position:10%,start line:85% size:80% back to them. They're going to know this is 21:55.530 --> 21:58.800 align:left position:10%,start line:85% size:80% coming, and chances are you may be able to settle that without a 21:58.800 --> 22:03.770 align:left position:10%,start line:85% size:80% full-on war. >> We were just this little 22:03.770 --> 22:09.600 align:left position:10%,start line:85% size:80% mom and pop publishing company, publishing poetry books and 22:09.600 --> 22:14.130 align:left position:10%,start line:85% size:80% translated fiction. >> NARRATOR: In the early 2000s, 22:14.130 --> 22:16.930 align:left position:10%,start line:85% size:80% the number of books Dennis Johnson was selling on Amazon 22:16.930 --> 22:20.270 align:left position:10%,start line:85% size:80% had been rising steadily. Then one day, he got a phone 22:20.270 --> 22:24.070 align:left position:10%,start line:85% size:80% call. >> Our distributor called us up 22:24.070 --> 22:26.630 align:left position:10%,start line:85% size:80% to talk about our Amazon contract. 22:26.630 --> 22:30.830 align:left position:10%,start line:85% size:80% And he said, "I went out to dinner last night with Amazon, 22:30.830 --> 22:34.530 align:left position:10%,start line:85% size:80% it was like going out to dinner with the Godfather. 22:34.530 --> 22:38.000 align:left position:10%,start line:85% size:80% They want a kickback." That's the word he used, 22:38.000 --> 22:41.700 align:left position:10%,start line:85% size:80% kickback. And he said they wanted four 22:41.700 --> 22:47.670 align:left position:10%,start line:85% size:80% percent more of our sales. >> Was that unusual? 22:47.670 --> 22:51.630 align:left position:10%,start line:85% size:80% >> It was... in our experience, it was totally unprecedented, 22:51.630 --> 22:54.970 align:left position:10%,start line:85% size:80% yes. >> NARRATOR: Randy Miller ran 22:54.970 --> 22:58.130 align:left position:10%,start line:85% size:80% the European book team and says he saw nothing wrong with 22:58.130 --> 23:02.100 align:left position:10%,start line:85% size:80% Amazon's tough tactics to challenge publishers on prices 23:02.100 --> 23:04.300 align:left position:10%,start line:85% size:80% and profit margins. >> In order to bring them into 23:04.300 --> 23:07.430 align:left position:10%,start line:85% size:80% line, we would actually take them out of automated 23:07.430 --> 23:11.000 align:left position:10%,start line:85% size:80% merchandising, take their prices up to list price; we would put 23:11.000 --> 23:13.900 align:left position:10%,start line:85% size:80% references on the product page, their product page, saying, "You 23:13.900 --> 23:16.730 align:left position:10%,start line:85% size:80% want it cheaper, you want this book for, on this topic for a 23:16.730 --> 23:18.830 align:left position:10%,start line:85% size:80% way cheaper price? Click here." 23:18.830 --> 23:20.970 align:left position:10%,start line:85% size:80% And we'd send them to whoever we thought their worst competitor 23:20.970 --> 23:24.100 align:left position:10%,start line:85% size:80% was. That was how Amazon forced their 23:24.100 --> 23:27.330 align:left position:10%,start line:85% size:80% vendors to-to comply. (stammering): But that's an 23:27.330 --> 23:31.000 align:left position:10%,start line:85% size:80% old Walmart trick, I mean, it wasn't like Amazon created that. 23:31.000 --> 23:32.870 align:left position:10%,start line:85% size:80% And it made, it made a difference. 23:32.870 --> 23:36.930 align:left position:10%,start line:85% size:80% And, you know, Jeff kind of got excited about it. 23:36.930 --> 23:39.470 align:left position:10%,start line:85% size:80% >> NARRATOR: When Dennis Johnson still refused to give in to 23:39.470 --> 23:43.330 align:left position:10%,start line:85% size:80% Amazon's terms, he says the buy button on all Melville House 23:43.330 --> 23:46.770 align:left position:10%,start line:85% size:80% books suddenly disappeared, making it impossible for 23:46.770 --> 23:49.070 align:left position:10%,start line:85% size:80% customers to purchase them on Amazon. 23:49.500 --> 23:51.670 align:left position:10%,start line:85% size:80% >> I mean, this is the company that referred to little 23:51.670 --> 23:57.170 align:left position:10%,start line:85% size:80% publishers like me as wounded gazelles, I believe? 23:57.170 --> 23:59.230 align:left position:10%,start line:85% size:80% That's how they think, that's how he thought from the 23:59.230 --> 24:03.100 align:left position:10%,start line:85% size:80% beginning. And we eventually had to pay 24:03.100 --> 24:05.570 align:left position:10%,start line:85% size:80% what at the time I called a bribe. 24:05.870 --> 24:11.500 align:left position:10%,start line:85% size:80% And our attitude toward Amazon was, you know, "Render unto 24:11.500 --> 24:16.270 align:left position:10%,start line:85% size:80% Caesar that which is Caesar's." And then carry on as best as you 24:16.270 --> 24:18.630 align:left position:10%,start line:85% size:80% can. >> Jeff Bezos may say 24:18.630 --> 24:23.930 align:left position:10%,start line:85% size:80% that Amazon comes along and has given publishers like yourself 24:23.930 --> 24:28.800 align:left position:10%,start line:85% size:80% access to a huge distribution channel for your books. 24:28.800 --> 24:31.500 align:left position:10%,start line:85% size:80% Has Amazon been good for your business? 24:31.500 --> 24:35.400 align:left position:10%,start line:85% size:80% >> Well, absolutely they have. Any bookseller that sells our 24:35.400 --> 24:38.700 align:left position:10%,start line:85% size:80% books is good for our business. So, I'm not complaining that 24:38.700 --> 24:42.700 align:left position:10%,start line:85% size:80% Amazon is selling our books. I'm just complaining of the way 24:42.700 --> 24:46.630 align:left position:10%,start line:85% size:80% that their tactics are hurting the industry I love. 24:46.630 --> 24:49.330 align:left position:10%,start line:85% size:80% >> NARRATOR: In addition to granting interviews, Amazon 24:49.330 --> 24:53.070 align:left position:10%,start line:85% size:80% responded to written questions. Regarding Dennis Johnson's 24:53.070 --> 24:57.170 align:left position:10%,start line:85% size:80% characterizations, it told us, "Amazon disagrees with this 24:57.170 --> 24:59.730 align:left position:10%,start line:85% size:80% account." >> Were you 24:59.730 --> 25:02.870 align:left position:10%,start line:85% size:80% uncomfortable with that sort of ruthlessness ever? 25:02.870 --> 25:04.730 align:left position:10%,start line:85% size:80% >> Well, no, 'cause I was in retail-- I mean, people think 25:04.730 --> 25:06.500 align:left position:10%,start line:85% size:80% that's ruthless. You know, I looked, and some 25:06.500 --> 25:09.230 align:left position:10%,start line:85% size:80% people at Amazon, "Wow, that's kind of mean," and I'm like, 25:09.230 --> 25:12.130 align:left position:10%,start line:85% size:80% "Oh, a retailer and a supplier having a disagreement? 25:12.130 --> 25:14.570 align:left position:10%,start line:85% size:80% Stop the presses!" It happens all the time. 25:14.570 --> 25:17.030 align:left position:10%,start line:85% size:80% I mean, you know, look, you've got a finite margin, and 25:17.030 --> 25:19.030 align:left position:10%,start line:85% size:80% somebody's going to have to give. 25:19.030 --> 25:22.500 align:left position:10%,start line:85% size:80% And-and a lot of times Amazon wasn't the one giving. 25:22.500 --> 25:25.970 align:left position:10%,start line:85% size:80% >> Kindle is a purpose-built reading device. 25:25.970 --> 25:28.670 align:left position:10%,start line:85% size:80% >> NARRATOR: The tension between Amazon and book publishers would 25:28.670 --> 25:32.330 align:left position:10%,start line:85% size:80% ramp up even further with the unveiling of the Kindle, which 25:32.330 --> 25:35.800 align:left position:10%,start line:85% size:80% helped the industry transition to the digital age, but gave 25:35.800 --> 25:39.370 align:left position:10%,start line:85% size:80% Amazon more power to set prices lower. 25:39.370 --> 25:45.430 align:left position:10%,start line:85% size:80% >> And new releases are only $9.99. 25:45.430 --> 25:48.300 align:left position:10%,start line:85% size:80% >> NARRATOR: Around that time, Barry Lynn, an advocate for 25:48.300 --> 25:52.570 align:left position:10%,start line:85% size:80% broad antitrust enforcement, was growing increasingly concerned 25:52.570 --> 25:55.170 align:left position:10%,start line:85% size:80% by what he was hearing from publishers. 25:55.170 --> 25:58.100 align:left position:10%,start line:85% size:80% >> If the door was open, the publisher would say, "Hey, you 25:58.100 --> 26:01.170 align:left position:10%,start line:85% size:80% know, Amazon, they're just a terrific customer, they're our 26:01.170 --> 26:04.400 align:left position:10%,start line:85% size:80% biggest customer. They buy the most books, they 26:04.400 --> 26:07.500 align:left position:10%,start line:85% size:80% sell the most books. We love them." 26:07.500 --> 26:10.570 align:left position:10%,start line:85% size:80% Then you close the door, and they say, "Amazon is destroying 26:10.570 --> 26:13.830 align:left position:10%,start line:85% size:80% our business model, they're destroying our business, they 26:13.830 --> 26:18.330 align:left position:10%,start line:85% size:80% have way too much power, we must do something about them." 26:18.330 --> 26:20.400 align:left position:10%,start line:85% size:80% >> NARRATOR: Lynn wanted publishers to speak up 26:20.400 --> 26:23.800 align:left position:10%,start line:85% size:80% publicly and thought federal antitrust regulators might 26:23.800 --> 26:28.130 align:left position:10%,start line:85% size:80% investigate whether Amazon was a monopoly, illegally abusing its 26:28.130 --> 26:31.800 align:left position:10%,start line:85% size:80% market dominance in anticompetitive ways. 26:32.400 --> 26:35.370 align:left position:10%,start line:85% size:80% >> And they'd say, "No way, I'm not going to talk about Amazon 26:35.370 --> 26:37.530 align:left position:10%,start line:85% size:80% in public. I'm not talking about them on 26:37.530 --> 26:40.470 align:left position:10%,start line:85% size:80% Capitol Hill. They will take retribution 26:40.470 --> 26:42.130 align:left position:10%,start line:85% size:80% against me." >> To which you 26:42.130 --> 26:44.730 align:left position:10%,start line:85% size:80% responded? >> "Well, that's why we have to 26:44.730 --> 26:47.670 align:left position:10%,start line:85% size:80% do something about it." >> NARRATOR: Jennifer Cast ran 26:47.670 --> 26:51.470 align:left position:10%,start line:85% size:80% Amazon's books division in its formative years. 26:51.470 --> 26:54.000 align:left position:10%,start line:85% size:80% >> We've had a difficult time in some ways getting 26:54.000 --> 26:57.730 align:left position:10%,start line:85% size:80% publishers to talk to us on camera about Amazon. 26:57.730 --> 27:00.730 align:left position:10%,start line:85% size:80% In part, it seems the reason is that they're afraid. 27:00.730 --> 27:05.430 align:left position:10%,start line:85% size:80% How do you react to that, that publishers find it 27:05.430 --> 27:08.370 align:left position:10%,start line:85% size:80% uncomfortable to talk about Amazon publicly? 27:08.370 --> 27:12.300 align:left position:10%,start line:85% size:80% >> I don't know, I mean, I-I haven't seen that. 27:12.300 --> 27:15.030 align:left position:10%,start line:85% size:80% >> Yeah. >> I haven't been in your shoes. 27:15.330 --> 27:18.530 align:left position:10%,start line:85% size:80% I'm sure they have... I mean, if you're saying that they-they 27:18.530 --> 27:22.100 align:left position:10%,start line:85% size:80% don't talk negatively about us, I mean, I know they have a lot 27:22.100 --> 27:25.830 align:left position:10%,start line:85% size:80% of good things to say about us. Um, you know, I-I don't know why 27:25.830 --> 27:29.230 align:left position:10%,start line:85% size:80% they wouldn't speak their minds. We certainly value speaking our 27:29.230 --> 27:31.430 align:left position:10%,start line:85% size:80% minds. >> There is this 27:31.430 --> 27:34.000 align:left position:10%,start line:85% size:80% well-known anecdote about cheetahs and gazelles, this 27:34.000 --> 27:36.530 align:left position:10%,start line:85% size:80% Gazelle Program. Do you know about that? 27:36.530 --> 27:38.770 align:left position:10%,start line:85% size:80% >> I don't. >> We've talked to 27:38.770 --> 27:41.870 align:left position:10%,start line:85% size:80% former Amazonians about it, where Jeff had said, "We should 27:41.870 --> 27:46.570 align:left position:10%,start line:85% size:80% basically try to negotiate with book publishers and try to get 27:46.570 --> 27:50.070 align:left position:10%,start line:85% size:80% better terms and treat the smaller publishers as a cheetah 27:50.070 --> 27:52.500 align:left position:10%,start line:85% size:80% would go after a wounded gazelle." 27:52.500 --> 27:55.970 align:left position:10%,start line:85% size:80% >> I didn't hear the cheetah and gazelle example, but what we 27:55.970 --> 28:00.200 align:left position:10%,start line:85% size:80% were looking for was people that were willing to move away from 28:00.200 --> 28:03.330 align:left position:10%,start line:85% size:80% the old model of bricks and mortar to a new model, which 28:03.330 --> 28:10.100 align:left position:10%,start line:85% size:80% was, you know, a-a virtual store that had many different types of 28:10.100 --> 28:14.070 align:left position:10%,start line:85% size:80% opportunities to present their books to customers. 28:14.070 --> 28:16.970 align:left position:10%,start line:85% size:80% >> I want to talk a little bit about how we think about 28:16.970 --> 28:20.270 align:left position:10%,start line:85% size:80% innovation at Amazon.com. >> NARRATOR: Amazon would begin 28:20.270 --> 28:25.230 align:left position:10%,start line:85% size:80% to accumulate even more power in 2005, when Bezos quietly rolled 28:25.230 --> 28:28.600 align:left position:10%,start line:85% size:80% out a revolutionary new program: Amazon Prime. 28:28.600 --> 28:30.570 align:left position:10%,start line:85% size:80% >> Now they have something called the Prime shipping 28:30.570 --> 28:33.870 align:left position:10%,start line:85% size:80% program. >> Amazon Prime-- we only 28:33.870 --> 28:37.730 align:left position:10%,start line:85% size:80% launched this a week ago-- you pay $79 a year, and you get 28:37.730 --> 28:42.630 align:left position:10%,start line:85% size:80% two-day shipping for free. >> NARRATOR: It was a risky bet, 28:42.630 --> 28:45.330 align:left position:10%,start line:85% size:80% and it paid off. >> The lynchpin, or the glue, if 28:45.330 --> 28:48.530 align:left position:10%,start line:85% size:80% you will, and probably the seminal moment in Amazon's 28:48.530 --> 28:52.670 align:left position:10%,start line:85% size:80% business history, was the introduction of what has become 28:52.670 --> 28:56.000 align:left position:10%,start line:85% size:80% the most successful membership program in history, and that's 28:56.000 --> 28:58.200 align:left position:10%,start line:85% size:80% Prime. >> Many of you in this audience 28:58.200 --> 29:02.030 align:left position:10%,start line:85% size:80% will already be Amazon Prime members, bless you. 29:02.030 --> 29:05.530 align:left position:10%,start line:85% size:80% This is very much appreciated. >> It changes the way you shop. 29:05.530 --> 29:08.770 align:left position:10%,start line:85% size:80% >> NARRATOR: Eventually more than 150 million people would 29:08.770 --> 29:13.730 align:left position:10%,start line:85% size:80% sign up for the free shipping-- a tremendous expense for Amazon. 29:13.730 --> 29:18.400 align:left position:10%,start line:85% size:80% But to Bezos, it was worth it. >> The Prime program at Amazon 29:18.400 --> 29:22.470 align:left position:10%,start line:85% size:80% is one of the most important drivers of Amazon's growth. 29:22.470 --> 29:25.430 align:left position:10%,start line:85% size:80% When you go on and look to buy a product, and it's available in 29:25.430 --> 29:29.270 align:left position:10%,start line:85% size:80% two days, delivered to your door anywhere in the country, that 29:29.270 --> 29:33.170 align:left position:10%,start line:85% size:80% Amazon Prime program becomes a mechanism that keeps bringing 29:33.170 --> 29:35.900 align:left position:10%,start line:85% size:80% you back as a customer to keep buying and keep searching for 29:35.900 --> 29:40.570 align:left position:10%,start line:85% size:80% new products on Amazon. >> NARRATOR: Two-day delivery 29:40.570 --> 29:43.970 align:left position:10%,start line:85% size:80% anywhere in the country was a big promise for a company that, 29:43.970 --> 29:47.430 align:left position:10%,start line:85% size:80% at the time, had less than ten warehouses. 29:47.430 --> 29:50.200 align:left position:10%,start line:85% size:80% So Bezos went on a building spree. 29:50.200 --> 29:54.700 align:left position:10%,start line:85% size:80% ♪ ♪ Across the country Amazon 29:54.700 --> 29:59.370 align:left position:10%,start line:85% size:80% warehouses began to spring up, filled with millions of 29:59.370 --> 30:03.000 align:left position:10%,start line:85% size:80% products being sold on Bezos's platform. 30:03.000 --> 30:06.970 align:left position:10%,start line:85% size:80% He'd call them fulfillment centers, and they'd create 30:06.970 --> 30:10.400 align:left position:10%,start line:85% size:80% hundreds of thousands of jobs in places hard hit by the Great 30:10.400 --> 30:13.130 align:left position:10%,start line:85% size:80% Recession. >> Ten percent of Pennsylvania 30:13.130 --> 30:15.070 align:left position:10%,start line:85% size:80% residents unemployed... >> Job market is in complete 30:15.070 --> 30:16.630 align:left position:10%,start line:85% size:80% disarray. >> NARRATOR: Like Allentown, 30:16.630 --> 30:19.600 align:left position:10%,start line:85% size:80% Pennsylvania. >> At that time, it was 30:19.600 --> 30:23.570 align:left position:10%,start line:85% size:80% tremendous news that an employer was coming and actually opening 30:23.570 --> 30:27.870 align:left position:10%,start line:85% size:80% a facility and hiring people, versus, you know, gutting half 30:27.870 --> 30:30.370 align:left position:10%,start line:85% size:80% the staff. >> NARRATOR: Spencer Soper was a 30:30.370 --> 30:33.470 align:left position:10%,start line:85% size:80% business reporter for the "Allentown Morning Call" when 30:33.470 --> 30:36.730 align:left position:10%,start line:85% size:80% Amazon opened in the area in 2010. 30:36.730 --> 30:41.870 align:left position:10%,start line:85% size:80% He began hearing stories about working in the warehouse. 30:41.870 --> 30:45.630 align:left position:10%,start line:85% size:80% >> People are basically in this big, sprawling warehouse that's 30:45.630 --> 30:48.770 align:left position:10%,start line:85% size:80% stocked with goods in very random fashion. 30:48.770 --> 30:52.230 align:left position:10%,start line:85% size:80% And they have scanners that tell them which things to get. 30:52.230 --> 30:54.830 align:left position:10%,start line:85% size:80% And people are walking maybe ten, 15 miles a day. 30:54.830 --> 30:57.170 align:left position:10%,start line:85% size:80% So people just kind of crisscrossing this big warehouse 30:57.170 --> 31:00.300 align:left position:10%,start line:85% size:80% all day long. >> NARRATOR: As workers told him 31:00.300 --> 31:04.130 align:left position:10%,start line:85% size:80% about the punishing pace to meet the daily quota of packages, and 31:04.130 --> 31:07.830 align:left position:10%,start line:85% size:80% the intense heat, Soper and his colleagues started to 31:07.830 --> 31:10.370 align:left position:10%,start line:85% size:80% investigate further. >> People really felt like 31:10.370 --> 31:13.300 align:left position:10%,start line:85% size:80% Amazon was playing fast and loose with their, with their 31:13.300 --> 31:15.730 align:left position:10%,start line:85% size:80% health. >> NARRATOR: Soper discovered 31:15.730 --> 31:18.000 align:left position:10%,start line:85% size:80% there had been numerous complaints to authorities at the 31:18.000 --> 31:22.000 align:left position:10%,start line:85% size:80% Occupational Safety and Health Administration, OSHA. 31:22.000 --> 31:25.100 align:left position:10%,start line:85% size:80% >> They actually had a complaint from an emergency-room doctor 31:25.100 --> 31:30.100 align:left position:10%,start line:85% size:80% who called their hotline one day saying, "Listen, you might want 31:30.100 --> 31:32.970 align:left position:10%,start line:85% size:80% to check out this Amazon place. I've had, like, people parading 31:32.970 --> 31:36.530 align:left position:10%,start line:85% size:80% through my emergency room to be treated for heat stress." 31:36.530 --> 31:39.770 align:left position:10%,start line:85% size:80% There was a security guard who worked in the facility who sent 31:39.770 --> 31:43.730 align:left position:10%,start line:85% size:80% a complaint to OSHA saying that he saw pregnant women suffering 31:43.730 --> 31:47.000 align:left position:10%,start line:85% size:80% heat stress in-in the facility. And so there's just, like, these 31:47.000 --> 31:50.670 align:left position:10%,start line:85% size:80% red flags right and left. >> NARRATOR: After an 31:50.670 --> 31:54.730 align:left position:10%,start line:85% size:80% investigation, OSHA said Amazon needed to keep the temperatures 31:54.730 --> 31:57.930 align:left position:10%,start line:85% size:80% in the warehouses lower. In a statement at the time, the 31:57.930 --> 32:01.600 align:left position:10%,start line:85% size:80% company said it installed new industrial air conditioning and 32:01.600 --> 32:05.430 align:left position:10%,start line:85% size:80% pledged that worker safety was its number-one priority. 32:05.430 --> 32:07.500 align:left position:10%,start line:85% size:80% >> Amazon is shrewd businesspeople, shrewd 32:07.500 --> 32:09.570 align:left position:10%,start line:85% size:80% businesspeople know when they have leverage. 32:09.570 --> 32:13.030 align:left position:10%,start line:85% size:80% And when you're the only shop hiring people in town, you can 32:13.030 --> 32:15.130 align:left position:10%,start line:85% size:80% push them a lot harder than you can when-when they've got 32:15.130 --> 32:19.970 align:left position:10%,start line:85% size:80% alternatives. >> NARRATOR: Over the following 32:19.970 --> 32:22.970 align:left position:10%,start line:85% size:80% years, Amazon would hire hundreds of thousands of 32:22.970 --> 32:26.570 align:left position:10%,start line:85% size:80% workers and become one of the largest jobs 32:26.570 --> 32:29.370 align:left position:10%,start line:85% size:80% creators in the country. At the fulfillment centers, 32:29.370 --> 32:32.900 align:left position:10%,start line:85% size:80% Bezos experimented with new techniques and technologies to 32:32.900 --> 32:36.170 align:left position:10%,start line:85% size:80% boost productivity. >> Willingness to experiment is 32:36.170 --> 32:38.200 align:left position:10%,start line:85% size:80% the key to be able to do new things. 32:38.200 --> 32:41.900 align:left position:10%,start line:85% size:80% So we do, you know, hundreds of experiments every day in our 32:41.900 --> 32:44.170 align:left position:10%,start line:85% size:80% fulfillment centers to get a little bit better. 32:44.170 --> 32:46.200 align:left position:10%,start line:85% size:80% Kind of like incremental invention. 32:46.200 --> 32:50.500 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: When a company 32:50.500 --> 32:54.030 align:left position:10%,start line:85% size:80% called Kiva perfected a warehouse robot, Amazon bought 32:54.030 --> 32:56.670 align:left position:10%,start line:85% size:80% the whole company. >> Amazon has acquired Kiva 32:56.670 --> 32:59.600 align:left position:10%,start line:85% size:80% Systems. They make shipping robots. 32:59.600 --> 33:02.830 align:left position:10%,start line:85% size:80% >> NARRATOR: It helped transform the work environment in Amazon's 33:02.830 --> 33:08.100 align:left position:10%,start line:85% size:80% warehouses. >> When I first showed up at 33:08.100 --> 33:11.630 align:left position:10%,start line:85% size:80% Amazon in 1999, I led our Global Operations team. 33:11.630 --> 33:14.630 align:left position:10%,start line:85% size:80% >> NARRATOR: Jeff Wilke created the Amazon fulfillment center 33:14.630 --> 33:19.330 align:left position:10%,start line:85% size:80% system and is one of two C.E.O.s under Jeff Bezos. 33:19.330 --> 33:22.700 align:left position:10%,start line:85% size:80% >> As we've added 200,000 robots, in that same time frame 33:22.700 --> 33:26.200 align:left position:10%,start line:85% size:80% since 2012 we've added 300,000 people in our fulfillment 33:26.200 --> 33:28.200 align:left position:10%,start line:85% size:80% centers. So what happens is the robots 33:28.200 --> 33:30.700 align:left position:10%,start line:85% size:80% change the work, so they allow us... people don't have to walk 33:30.700 --> 33:33.200 align:left position:10%,start line:85% size:80% as far, which is a complaint that we've heard in the past. 33:33.200 --> 33:36.070 align:left position:10%,start line:85% size:80% They make the job safer, they make them higher quality, 33:36.070 --> 33:40.530 align:left position:10%,start line:85% size:80% because we present a smaller set of options to-to employees. 33:40.530 --> 33:42.630 align:left position:10%,start line:85% size:80% And that's all good for customers, and it's good for 33:42.630 --> 33:44.800 align:left position:10%,start line:85% size:80% employees too. >> NARRATOR: But at the same 33:44.800 --> 33:48.930 align:left position:10%,start line:85% size:80% time, complaints have persisted. >> People who've worked in 33:48.930 --> 33:51.530 align:left position:10%,start line:85% size:80% warehouses for decades say, "This is different. 33:51.530 --> 33:54.870 align:left position:10%,start line:85% size:80% This is not the same." We're here today because we 33:54.870 --> 33:57.330 align:left position:10%,start line:85% size:80% want to make sure that these workers know about their rights 33:57.330 --> 33:59.500 align:left position:10%,start line:85% size:80% in the workplace, especially around heat. 33:59.500 --> 34:02.400 align:left position:10%,start line:85% size:80% >> NARRATOR: Sheheryar Kaoosji is an advocate for warehouse 34:02.400 --> 34:06.070 align:left position:10%,start line:85% size:80% workers in the San Bernardino, California, area-- an Amazon 34:06.070 --> 34:10.500 align:left position:10%,start line:85% size:80% hub, with ten fulfillment centers and over 15,000 34:10.500 --> 34:13.070 align:left position:10%,start line:85% size:80% employees. >> Because of the way that 34:13.070 --> 34:16.470 align:left position:10%,start line:85% size:80% Amazon operates, because of the way that they set their rates 34:16.470 --> 34:21.330 align:left position:10%,start line:85% size:80% for productivity, it's a lot harder work physically but also 34:21.330 --> 34:23.930 align:left position:10%,start line:85% size:80% psychologically. >> NARRATOR: We sat down with a 34:23.930 --> 34:28.230 align:left position:10%,start line:85% size:80% group in San Bernardino who'd recently worked at Amazon. 34:28.230 --> 34:30.500 align:left position:10%,start line:85% size:80% >> When they first got here, I thought it was exciting. 34:30.500 --> 34:33.900 align:left position:10%,start line:85% size:80% Like, for me, I was thinking maybe I could find a-a place 34:33.900 --> 34:36.770 align:left position:10%,start line:85% size:80% where, you know, I'm going to set roots of a good job, you 34:36.770 --> 34:39.570 align:left position:10%,start line:85% size:80% know, move up in-in the place. But after being there for a 34:39.570 --> 34:41.930 align:left position:10%,start line:85% size:80% while, I was like, "There's no way." 34:41.930 --> 34:43.970 align:left position:10%,start line:85% size:80% >> It's like, "Okay, this is where I can probably make a 34:43.970 --> 34:46.970 align:left position:10%,start line:85% size:80% career." But once you worked there for a 34:46.970 --> 34:49.970 align:left position:10%,start line:85% size:80% certain amount of time, it's just like, it's just not 34:49.970 --> 34:52.630 align:left position:10%,start line:85% size:80% realistic, how they expect you to work. 34:52.630 --> 34:54.900 align:left position:10%,start line:85% size:80% >> NARRATOR: Like dozens of workers we've spoken to around 34:54.900 --> 34:58.330 align:left position:10%,start line:85% size:80% the country, they say they've struggled to keep up with the 34:58.330 --> 35:02.570 align:left position:10%,start line:85% size:80% rate Amazon expected them to pick and pack items. 35:02.570 --> 35:05.130 align:left position:10%,start line:85% size:80% >> How realistic are the rates that they're giving you? 35:05.130 --> 35:06.930 align:left position:10%,start line:85% size:80% I mean, what's... >> Not realistic at all. 35:06.930 --> 35:09.000 align:left position:10%,start line:85% size:80% >> Not-not realistic? >> No. 35:09.000 --> 35:11.470 align:left position:10%,start line:85% size:80% There's absolutely no way to make rate, you know, you got to 35:11.470 --> 35:14.770 align:left position:10%,start line:85% size:80% find little ways to-to cheat it, because once you hit rate, 35:14.770 --> 35:17.500 align:left position:10%,start line:85% size:80% by the end of the week, they raised it, they bump it up 35:17.500 --> 35:19.770 align:left position:10%,start line:85% size:80% again. Because they start seeing, "Hey, 35:19.770 --> 35:22.830 align:left position:10%,start line:85% size:80% people can hit those rates, can hit those numbers, hey, 35:22.830 --> 35:25.170 align:left position:10%,start line:85% size:80% let's push them a little harder." 35:25.170 --> 35:27.630 align:left position:10%,start line:85% size:80% Every week it seemed like it was going up. 35:27.630 --> 35:35.430 align:left position:10%,start line:85% size:80% ♪ ♪ >> You have security cameras 35:35.430 --> 35:39.000 align:left position:10%,start line:85% size:80% right behind you at all times, that are looking at you 35:39.000 --> 35:42.130 align:left position:10%,start line:85% size:80% 24-seven. And if you don't meet standards 35:42.130 --> 35:46.700 align:left position:10%,start line:85% size:80% or the rates, you're out the door, you're just disposable. 35:46.700 --> 35:50.270 align:left position:10%,start line:85% size:80% >> Every worker has a scanner at all times that basically track 35:50.270 --> 35:54.100 align:left position:10%,start line:85% size:80% exactly where you're at. >> And they have a little blue 35:54.100 --> 35:58.870 align:left position:10%,start line:85% size:80% line at the bottom of the screen, and it has, like, how 35:58.870 --> 36:03.970 align:left position:10%,start line:85% size:80% many seconds that you have to have it done by the time it hits 36:03.970 --> 36:07.070 align:left position:10%,start line:85% size:80% zero, and it puts you into panic mode. 36:07.070 --> 36:10.200 align:left position:10%,start line:85% size:80% >> And pretty much you can't talk to people, you can't be in 36:10.200 --> 36:12.830 align:left position:10%,start line:85% size:80% the same aisle as them, you just constantly have to sit 36:12.830 --> 36:15.730 align:left position:10%,start line:85% size:80% there scanning like a robot all day long. 36:15.730 --> 36:18.430 align:left position:10%,start line:85% size:80% If they catch you not scanning, you get a write-up. 36:18.430 --> 36:20.930 align:left position:10%,start line:85% size:80% >> And what they're doing is they're producing this mass of 36:20.930 --> 36:24.600 align:left position:10%,start line:85% size:80% data that they are using to be able to analyze the entire 36:24.600 --> 36:29.230 align:left position:10%,start line:85% size:80% workforce. >> We're not treated as human 36:29.230 --> 36:32.100 align:left position:10%,start line:85% size:80% beings, we're not even treated as robots. 36:32.100 --> 36:35.200 align:left position:10%,start line:85% size:80% We're treated as part of the data stream. 36:35.200 --> 36:38.270 align:left position:10%,start line:85% size:80% >> It's the incentive at any warehouse, on any assembly 36:38.270 --> 36:40.600 align:left position:10%,start line:85% size:80% line, to get the most out of any worker. 36:40.600 --> 36:42.630 align:left position:10%,start line:85% size:80% >> Yes. >> To make rates, to-to 36:42.630 --> 36:45.670 align:left position:10%,start line:85% size:80% be as efficient as possible, to be as productive as possible. 36:45.670 --> 36:48.900 align:left position:10%,start line:85% size:80% So, I don't see exactly what's different about Amazon as 36:48.900 --> 36:54.700 align:left position:10%,start line:85% size:80% opposed to any other warehouse. >> Amazon is the cutting edge. 36:54.700 --> 36:57.770 align:left position:10%,start line:85% size:80% Other warehouses are starting to adopt these technologies, other 36:57.770 --> 37:00.600 align:left position:10%,start line:85% size:80% companies are definitely interested in doing what Amazon 37:00.600 --> 37:03.100 align:left position:10%,start line:85% size:80% is doing. Data collection could become 37:03.100 --> 37:05.930 align:left position:10%,start line:85% size:80% basically the standard for all workers, and that there's... 37:05.930 --> 37:08.970 align:left position:10%,start line:85% size:80% you're never good enough, you're never able to keep up. 37:08.970 --> 37:14.530 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: Amazon told us work 37:14.530 --> 37:17.030 align:left position:10%,start line:85% size:80% rates are not based on individual employee's 37:17.030 --> 37:20.400 align:left position:10%,start line:85% size:80% performance, and that the scanning devices workers use are 37:20.400 --> 37:24.670 align:left position:10%,start line:85% size:80% not for tracking people but inventory-- a common practice in 37:24.670 --> 37:28.270 align:left position:10%,start line:85% size:80% the warehouse industry. >> We've talked to 37:28.270 --> 37:31.670 align:left position:10%,start line:85% size:80% workers around the country, both current and former workers. 37:31.670 --> 37:36.070 align:left position:10%,start line:85% size:80% They've described the pace of work as being really grueling. 37:36.070 --> 37:39.300 align:left position:10%,start line:85% size:80% In the early thinking about rates and how far you could 37:39.300 --> 37:42.730 align:left position:10%,start line:85% size:80% push human beings in terms of their productivity, what was the 37:42.730 --> 37:46.100 align:left position:10%,start line:85% size:80% thinking about that? >> Well, obviously if the rates 37:46.100 --> 37:48.500 align:left position:10%,start line:85% size:80% are too high, you're not going to have people showing up for 37:48.500 --> 37:51.870 align:left position:10%,start line:85% size:80% work. So, we have 600,000 people at 37:51.870 --> 37:55.470 align:left position:10%,start line:85% size:80% the company, most of them are in the fulfillment centers, and 37:55.470 --> 37:58.970 align:left position:10%,start line:85% size:80% they-they come to work every day, they stay for years. 37:59.470 --> 38:02.300 align:left position:10%,start line:85% size:80% These are considered great jobs in the hundreds of communities 38:02.300 --> 38:04.170 align:left position:10%,start line:85% size:80% where we have fulfillment centers all over the world, 38:04.170 --> 38:08.000 align:left position:10%,start line:85% size:80% and in the U.S. we have, almost every state has an operation in 38:08.000 --> 38:10.900 align:left position:10%,start line:85% size:80% it, and people come to work because these are great jobs. 38:10.900 --> 38:13.630 align:left position:10%,start line:85% size:80% They're safe, we pay double the minimum wage, the national 38:13.630 --> 38:15.970 align:left position:10%,start line:85% size:80% minimum wage, we have terrific benefits. 38:15.970 --> 38:18.230 align:left position:10%,start line:85% size:80% The benefits for the folks that work on the floor are the same 38:18.230 --> 38:21.070 align:left position:10%,start line:85% size:80% benefits that my family has access to-- our family leave is 38:21.070 --> 38:25.730 align:left position:10%,start line:85% size:80% like 20 weeks. So, the rates are set so that we 38:25.730 --> 38:28.630 align:left position:10%,start line:85% size:80% can accomplish what we need to, which is get orders to customers 38:28.630 --> 38:32.500 align:left position:10%,start line:85% size:80% in a-a reasonable time and in a high-quality way, and that 38:32.500 --> 38:34.830 align:left position:10%,start line:85% size:80% creates a workplace that people want to come back to, and they 38:34.830 --> 38:39.000 align:left position:10%,start line:85% size:80% do. >> NARRATOR: Amazon wouldn't 38:39.000 --> 38:41.370 align:left position:10%,start line:85% size:80% tell us how long fulfillment-center workers stay 38:41.370 --> 38:44.570 align:left position:10%,start line:85% size:80% on the job or how often they're injured. 38:44.570 --> 38:47.500 align:left position:10%,start line:85% size:80% But workers we spoke to say the rates are higher than other 38:47.500 --> 38:50.830 align:left position:10%,start line:85% size:80% warehouses-- and that the company rebuffs attempts to 38:50.830 --> 38:54.830 align:left position:10%,start line:85% size:80% unionize. >> We do not believe unions are 38:54.830 --> 38:57.830 align:left position:10%,start line:85% size:80% in the best interest of our customers, our shareholders, or 38:57.830 --> 39:00.430 align:left position:10%,start line:85% size:80% most importantly, our associates. 39:00.430 --> 39:02.930 align:left position:10%,start line:85% size:80% >> NARRATOR: This is a clip from a video the company says it 39:02.930 --> 39:06.630 align:left position:10%,start line:85% size:80% used in the past to teach managers about employees' 39:06.630 --> 39:09.170 align:left position:10%,start line:85% size:80% rights and labor laws. >> The most obvious signs would 39:09.170 --> 39:13.000 align:left position:10%,start line:85% size:80% include use of words associated with unions or union-led 39:13.000 --> 39:16.100 align:left position:10%,start line:85% size:80% movements like "living wage" or "steward." 39:16.100 --> 39:19.470 align:left position:10%,start line:85% size:80% >> Early on, Amazon took a position to basically be 39:19.470 --> 39:22.800 align:left position:10%,start line:85% size:80% anti-union. Why was that decision made? 39:22.800 --> 39:24.830 align:left position:10%,start line:85% size:80% >> I don't think we made the decision to be anti-union. 39:24.830 --> 39:27.870 align:left position:10%,start line:85% size:80% We just feel that all of the things that-that unions 39:27.870 --> 39:32.500 align:left position:10%,start line:85% size:80% would-would want to-to get us to do, we've already done. 39:32.500 --> 39:34.570 align:left position:10%,start line:85% size:80% >> What-what about setting rate, though? 39:34.570 --> 39:37.100 align:left position:10%,start line:85% size:80% Do you not see that there's a little bit more leverage in the 39:37.100 --> 39:40.130 align:left position:10%,start line:85% size:80% hands of management in this scenario than there would be in 39:40.130 --> 39:42.900 align:left position:10%,start line:85% size:80% a unionized environment? >> I don't know, it's hard to 39:42.900 --> 39:45.470 align:left position:10%,start line:85% size:80% speculate on that, but-but I do think that we have the 39:45.470 --> 39:49.430 align:left position:10%,start line:85% size:80% obligation to set rates that are, again, going to encourage 39:49.430 --> 39:55.230 align:left position:10%,start line:85% size:80% people to seek these jobs and deliver for customers, you know, 39:55.230 --> 39:57.100 align:left position:10%,start line:85% size:80% what we've promised. >> What would you say to 39:57.100 --> 39:59.670 align:left position:10%,start line:85% size:80% someone, though, who's, who's worked in-in your fulfillment 39:59.670 --> 40:03.670 align:left position:10%,start line:85% size:80% centers that feels as though there's been... that-that humans 40:03.670 --> 40:06.570 align:left position:10%,start line:85% size:80% are increasingly being treated like robots? 40:06.570 --> 40:08.730 align:left position:10%,start line:85% size:80% 'Cause it's something that we've actually heard, and I don't 40:08.730 --> 40:12.300 align:left position:10%,start line:85% size:80% sense it's hyperbole. >> Well, that's not the 40:12.300 --> 40:15.430 align:left position:10%,start line:85% size:80% experience that-that I had in setting it up or that I've 40:15.430 --> 40:17.970 align:left position:10%,start line:85% size:80% seen. It's, it's certainly true 40:17.970 --> 40:21.830 align:left position:10%,start line:85% size:80% that-that these jobs are not for everybody, and there-there may 40:21.830 --> 40:25.370 align:left position:10%,start line:85% size:80% be people that don't want to do this kind of work. 40:25.370 --> 40:27.800 align:left position:10%,start line:85% size:80% >> NARRATOR: Amazon executives also stress the company has 40:27.800 --> 40:31.030 align:left position:10%,start line:85% size:80% become an industry leader in training its workforce for 40:31.030 --> 40:34.730 align:left position:10%,start line:85% size:80% career advancement. >> We just announced a pledge 40:34.730 --> 40:39.000 align:left position:10%,start line:85% size:80% recently to spend $700 million to upskill, which is basically 40:39.000 --> 40:42.200 align:left position:10%,start line:85% size:80% creating career opportunities for people, 100,000 of our 40:42.200 --> 40:44.630 align:left position:10%,start line:85% size:80% employees. We pay 95% of tuition to go 40:44.630 --> 40:48.470 align:left position:10%,start line:85% size:80% to-to college to get a skill that isn't about Amazon, that's 40:48.470 --> 40:51.330 align:left position:10%,start line:85% size:80% about creating options for the employees, and I would expect 40:51.330 --> 40:54.400 align:left position:10%,start line:85% size:80% those people to take advantage of that, work for us for a 40:54.400 --> 40:57.030 align:left position:10%,start line:85% size:80% couple of years and then go do something that they would much 40:57.030 --> 41:02.300 align:left position:10%,start line:85% size:80% rather do, and that's okay. >> There will be people 41:02.300 --> 41:05.800 align:left position:10%,start line:85% size:80% that will hear what y'all are saying, and they'll say, "Well, 41:05.800 --> 41:09.370 align:left position:10%,start line:85% size:80% you signed up for physical labor, a job is a job, there 41:09.370 --> 41:14.700 align:left position:10%,start line:85% size:80% were benefits, and they are now investing $700 million to 41:14.700 --> 41:17.470 align:left position:10%,start line:85% size:80% do retraining for other types of jobs. 41:17.470 --> 41:19.730 align:left position:10%,start line:85% size:80% What's the real grievance? What is there to complain 41:19.730 --> 41:21.700 align:left position:10%,start line:85% size:80% about?" >> I actually used to think that 41:21.700 --> 41:24.770 align:left position:10%,start line:85% size:80% way for a while whenever I, when I first started, whoever I heard 41:24.770 --> 41:26.830 align:left position:10%,start line:85% size:80% complaints from, I was like, "Well, it was in the job 41:26.830 --> 41:29.500 align:left position:10%,start line:85% size:80% description, and you signed up for it." 41:29.500 --> 41:34.430 align:left position:10%,start line:85% size:80% The part they don't talk about is the safety rules that you 41:34.430 --> 41:38.900 align:left position:10%,start line:85% size:80% have to ignore to make rate. It's not just you go in, okay, 41:38.900 --> 41:40.730 align:left position:10%,start line:85% size:80% and you-you do your job, and that's it. 41:40.730 --> 41:42.870 align:left position:10%,start line:85% size:80% >> So, you're in, you're in a weird bind. 41:42.870 --> 41:47.830 align:left position:10%,start line:85% size:80% >> It's incredibly hard to meet rate while following all the 41:47.830 --> 41:51.670 align:left position:10%,start line:85% size:80% safety procedures. >> A complaint that 41:51.670 --> 41:54.600 align:left position:10%,start line:85% size:80% we've heard from workers in terms of the sort of automation 41:54.600 --> 41:58.200 align:left position:10%,start line:85% size:80% of their work as humans, some of them telling us that, yes, there 41:58.200 --> 42:01.230 align:left position:10%,start line:85% size:80% are high safety standards in these fulfillment centers, but 42:01.230 --> 42:04.030 align:left position:10%,start line:85% size:80% that in order to make rate, they're having to cheat the 42:04.030 --> 42:06.230 align:left position:10%,start line:85% size:80% standard a little bit. >> Well, I would say that's not 42:06.230 --> 42:09.300 align:left position:10%,start line:85% size:80% okay. So I, from the moment that I 42:09.300 --> 42:12.630 align:left position:10%,start line:85% size:80% arrived 20 years ago, I made it very clear to our operations 42:12.630 --> 42:15.230 align:left position:10%,start line:85% size:80% teams that we will not compromise the safety of our 42:15.230 --> 42:19.530 align:left position:10%,start line:85% size:80% employees to do anything else. So, we have, we have a culture 42:19.530 --> 42:23.630 align:left position:10%,start line:85% size:80% that if-if we are asking people to do something that is, that 42:23.630 --> 42:26.800 align:left position:10%,start line:85% size:80% they have to do too fast to be safe, they can raise their hand 42:26.800 --> 42:29.600 align:left position:10%,start line:85% size:80% and say, "This isn't right," and-and we'll fix it. 42:29.600 --> 42:32.970 align:left position:10%,start line:85% size:80% (phone vibrates) >> NARRATOR: For years, Amazon 42:32.970 --> 42:36.570 align:left position:10%,start line:85% size:80% has put a happy face on its business and its workforce. 42:36.570 --> 42:40.200 align:left position:10%,start line:85% size:80% ("Give a Little Bit" by Supertramp playing) 42:40.200 --> 42:44.700 align:left position:10%,start line:85% size:80% >> ♪ Give a little bit Give a little bit of your 42:44.700 --> 42:47.700 align:left position:10%,start line:85% size:80% love... ♪ >> Even in Amazon's commercials, 42:47.700 --> 42:51.330 align:left position:10%,start line:85% size:80% the people are almost like shadows and silhouettes. 42:51.330 --> 42:53.430 align:left position:10%,start line:85% size:80% It's all about boxes, and there's just like happy boxes 42:53.430 --> 42:56.000 align:left position:10%,start line:85% size:80% singing and bumbling their way to your door, like, oh, no, no. 42:56.370 --> 42:58.970 align:left position:10%,start line:85% size:80% >> ♪ There's so much that we need. ♪ 42:58.970 --> 43:00.500 align:left position:10%,start line:85% size:80% >> Hello. >> Hey. 43:00.500 --> 43:02.670 align:left position:10%,start line:85% size:80% >> They don't want you to even think about how they do this. 43:02.670 --> 43:05.930 align:left position:10%,start line:85% size:80% They just want you to be wowed and, "Oh, how'd this, how'd this 43:05.930 --> 43:09.570 align:left position:10%,start line:85% size:80% get here?" >> ♪ I'll give a little bit of 43:09.570 --> 43:12.830 align:left position:10%,start line:85% size:80% my love to you. ♪ >> They wanted people to just 43:12.830 --> 43:19.300 align:left position:10%,start line:85% size:80% think, "Whoa, magic!" ♪ ♪ 43:19.300 --> 43:22.400 align:left position:10%,start line:85% size:80% >> NARRATOR: And magic was a big part of Bezos' marketing 43:22.400 --> 43:26.130 align:left position:10%,start line:85% size:80% strategy, with an emphasis on the company's miraculous level 43:26.130 --> 43:31.800 align:left position:10%,start line:85% size:80% of innovation and growth. >> We started Amazon Prime in 43:31.800 --> 43:38.800 align:left position:10%,start line:85% size:80% 2005, but then something very extraordinary happened. 43:38.800 --> 43:44.270 align:left position:10%,start line:85% size:80% This. In 2011, the slope of that graph 43:44.270 --> 43:48.570 align:left position:10%,start line:85% size:80% changed-- a lot. >> NARRATOR: As Amazon grew, he 43:48.570 --> 43:51.600 align:left position:10%,start line:85% size:80% wanted his top executives to think about the kind of company 43:51.600 --> 43:54.970 align:left position:10%,start line:85% size:80% it was becoming. He wrote a memo titled, 43:54.970 --> 44:01.130 align:left position:10%,start line:85% size:80% "Amazon.love." A copy of it was obtained by 44:01.130 --> 44:05.000 align:left position:10%,start line:85% size:80% Brad Stone. >> The memo is another example 44:05.000 --> 44:07.870 align:left position:10%,start line:85% size:80% of Jeff being very prescient about the future. 44:07.870 --> 44:10.670 align:left position:10%,start line:85% size:80% It's Jeff grappling with the idea that not all big companies 44:10.670 --> 44:13.370 align:left position:10%,start line:85% size:80% are loved. That there is something that we 44:13.370 --> 44:19.000 align:left position:10%,start line:85% size:80% get uncomfortable with when we talk about very big companies. 44:19.000 --> 44:23.330 align:left position:10%,start line:85% size:80% "Rudeness is not cool. Defeating tiny guys is not cool. 44:23.330 --> 44:26.230 align:left position:10%,start line:85% size:80% Risk taking is cool. Winning is cool. 44:26.230 --> 44:29.370 align:left position:10%,start line:85% size:80% Polite is cool. Defeating bigger, unsympathetic 44:29.370 --> 44:32.570 align:left position:10%,start line:85% size:80% guys is cool. Inventing is cool. 44:32.570 --> 44:38.170 align:left position:10%,start line:85% size:80% Explorers are cool. Conquerors are not cool." 44:38.170 --> 44:40.300 align:left position:10%,start line:85% size:80% >> Some businesses, you can tell when you go in and have 44:40.300 --> 44:44.170 align:left position:10%,start line:85% size:80% meetings with them, they have a conqueror mentality. 44:44.170 --> 44:46.500 align:left position:10%,start line:85% size:80% And there's a big difference between being a conqueror and 44:46.500 --> 44:49.600 align:left position:10%,start line:85% size:80% being an explorer. And I think in, you know, this 44:49.600 --> 44:54.700 align:left position:10%,start line:85% size:80% very inventive space that we're in, it pays to explore. 44:56.100 --> 45:00.330 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: But to some 45:00.330 --> 45:03.000 align:left position:10%,start line:85% size:80% watching Amazon's growth, the company was falling short of 45:03.000 --> 45:06.830 align:left position:10%,start line:85% size:80% that ideal, and taking steps to make sure nothing got in its 45:06.830 --> 45:11.100 align:left position:10%,start line:85% size:80% way. ♪ ♪ 45:11.100 --> 45:15.870 align:left position:10%,start line:85% size:80% In 2013, Amazon was moving to create its own delivery system 45:15.870 --> 45:20.330 align:left position:10%,start line:85% size:80% and made a key decision: rather than hire its own drivers, it 45:20.330 --> 45:24.830 align:left position:10%,start line:85% size:80% built a network of independent businesses to deliver packages. 45:25.970 --> 45:29.300 align:left position:10%,start line:85% size:80% >> They weren't just going to dabble here and dabble there. 45:29.300 --> 45:33.270 align:left position:10%,start line:85% size:80% They were going to go and create a system that would rival 45:33.270 --> 45:38.200 align:left position:10%,start line:85% size:80% FedEx or UPS. >> NARRATOR: ProPublica reporter 45:38.200 --> 45:41.430 align:left position:10%,start line:85% size:80% Patricia Callahan, in conjunction with Buzzfeed, has 45:41.430 --> 45:45.300 align:left position:10%,start line:85% size:80% investigated the system Amazon set up. 45:45.300 --> 45:48.170 align:left position:10%,start line:85% size:80% >> They figured out a way to get around regulation. 45:48.170 --> 45:51.670 align:left position:10%,start line:85% size:80% The cargo vans they choose are big enough to stuff with 45:51.670 --> 45:55.970 align:left position:10%,start line:85% size:80% hundreds of Amazon packages, but they're small enough that 45:55.970 --> 45:57.900 align:left position:10%,start line:85% size:80% they're not regulated by the federal government. 45:58.170 --> 46:00.470 align:left position:10%,start line:85% size:80% >> An 84-year-old woman struck and killed by an Amazon 46:00.470 --> 46:03.000 align:left position:10%,start line:85% size:80% delivery truck. >> A woman hit and killed in a 46:03.000 --> 46:05.630 align:left position:10%,start line:85% size:80% parking lot. >> NARRATOR: ProPublica and 46:05.630 --> 46:08.100 align:left position:10%,start line:85% size:80% Buzzfeed found that drivers are under intense pressure to 46:08.100 --> 46:10.700 align:left position:10%,start line:85% size:80% deliver packages. >> After striking him, the 46:10.700 --> 46:13.000 align:left position:10%,start line:85% size:80% van maneuvered around Salinas and his dog. 46:13.000 --> 46:16.030 align:left position:10%,start line:85% size:80% >> NARRATOR: And they documented more than 60 crashes, including 46:16.030 --> 46:20.470 align:left position:10%,start line:85% size:80% 13 deaths, since 2015. >> An infant critically injured 46:20.470 --> 46:24.400 align:left position:10%,start line:85% size:80% in a car crash has died. >> When it came time to figure 46:24.400 --> 46:28.100 align:left position:10%,start line:85% size:80% out who's responsible, Amazon would always say, "It's a 46:28.100 --> 46:30.770 align:left position:10%,start line:85% size:80% contractor, it's not our responsibility." 46:30.770 --> 46:34.000 align:left position:10%,start line:85% size:80% >> Now you've been able to find 13 deaths. 46:34.000 --> 46:36.270 align:left position:10%,start line:85% size:80% And that's over the course of several years. 46:36.270 --> 46:39.400 align:left position:10%,start line:85% size:80% Is that statistically significant given all of the 46:39.400 --> 46:42.400 align:left position:10%,start line:85% size:80% packages that they deliver in any day or any given year? 46:43.070 --> 46:46.700 align:left position:10%,start line:85% size:80% >> I don't pretend to claim that there's only 13 deaths and 46:46.700 --> 46:52.000 align:left position:10%,start line:85% size:80% that I found every single one. I just found enough to show that 46:52.000 --> 46:54.470 align:left position:10%,start line:85% size:80% this is happening around the country. 46:55.070 --> 46:59.070 align:left position:10%,start line:85% size:80% With UPS, there's a record. There's a federal record you can 46:59.070 --> 47:02.500 align:left position:10%,start line:85% size:80% look at how many serious injury and fatal accidents they have. 47:02.500 --> 47:07.030 align:left position:10%,start line:85% size:80% With Amazon, that doesn't exist. No one knows the safety records 47:07.030 --> 47:13.500 align:left position:10%,start line:85% size:80% of all of Amazon’s contractors. >> NARRATOR: Amazon disputed the 47:13.500 --> 47:17.200 align:left position:10%,start line:85% size:80% ProPublica report. It would not release any data on 47:17.200 --> 47:21.130 align:left position:10%,start line:85% size:80% crashes involving its driver network but told us it had a 47:21.130 --> 47:24.430 align:left position:10%,start line:85% size:80% "better than average" safety record and that nothing is more 47:24.430 --> 47:30.830 align:left position:10%,start line:85% size:80% important to them than safety. >> Any accident is one accident 47:30.830 --> 47:34.200 align:left position:10%,start line:85% size:80% too many, so just as we were focused on safety in the 47:34.200 --> 47:37.370 align:left position:10%,start line:85% size:80% fulfillment centers and product safety, we are... we set very 47:37.370 --> 47:41.130 align:left position:10%,start line:85% size:80% high standards with all of those partners for safe performance. 47:41.670 --> 47:45.700 align:left position:10%,start line:85% size:80% We have training videos for the third parties that work with us 47:45.700 --> 47:49.530 align:left position:10%,start line:85% size:80% to help them understand what we expect in terms of the drive, we 47:49.530 --> 47:52.570 align:left position:10%,start line:85% size:80% have mapping software that we use to help them find the right 47:52.570 --> 47:55.300 align:left position:10%,start line:85% size:80% routes. Every one of our drivers is 47:55.300 --> 47:59.530 align:left position:10%,start line:85% size:80% required, including the third parties, are required to have 47:59.530 --> 48:02.070 align:left position:10%,start line:85% size:80% comprehensive insurance, including liability insurance, 48:02.070 --> 48:06.830 align:left position:10%,start line:85% size:80% so that if there is an accident that the person who's injured is 48:06.830 --> 48:10.330 align:left position:10%,start line:85% size:80% covered. >> Amazon wants to get Prime 48:10.330 --> 48:12.830 align:left position:10%,start line:85% size:80% members their packages even faster... 48:12.830 --> 48:15.330 align:left position:10%,start line:85% size:80% >> NARRATOR: In the last year, Amazon announced a change to the 48:15.330 --> 48:19.130 align:left position:10%,start line:85% size:80% way it handles Prime deliveries. Instead of delivering packages 48:19.130 --> 48:22.970 align:left position:10%,start line:85% size:80% in two days, they promised to do it in one. 48:22.970 --> 48:26.070 align:left position:10%,start line:85% size:80% >> Free next-day delivery all across the U.S.... 48:26.570 --> 48:29.670 align:left position:10%,start line:85% size:80% >> It's impossible for me to imagine a world 20 years from 48:29.670 --> 48:32.230 align:left position:10%,start line:85% size:80% now where a customer comes up to me and says, "Jeff, I love 48:32.230 --> 48:34.400 align:left position:10%,start line:85% size:80% Amazon. I just wish your prices were a 48:34.400 --> 48:36.500 align:left position:10%,start line:85% size:80% little higher." Or, "I love Amazon. 48:36.500 --> 48:39.930 align:left position:10%,start line:85% size:80% I just wish you delivered a little more slowly." 48:39.930 --> 48:42.330 align:left position:10%,start line:85% size:80% >> NARRATOR: At the same time the delivery network was being 48:42.330 --> 48:46.970 align:left position:10%,start line:85% size:80% set up, Amazon was also rapidly expanding its product offerings, 48:46.970 --> 48:49.570 align:left position:10%,start line:85% size:80% inviting more sellers onto the site. 48:49.570 --> 48:53.570 align:left position:10%,start line:85% size:80% (computer plays tune) Including those from China. 48:53.570 --> 48:57.470 align:left position:10%,start line:85% size:80% >> It basically makes it to where it's super-easy for these 48:57.470 --> 49:00.470 align:left position:10%,start line:85% size:80% companies, who are maybe not as careful with adhering to 49:00.470 --> 49:04.330 align:left position:10%,start line:85% size:80% the law, where they're able to just start a business up on 49:04.330 --> 49:09.770 align:left position:10%,start line:85% size:80% Amazon, import some stuff, sell it, cause some problems, and 49:09.770 --> 49:13.900 align:left position:10%,start line:85% size:80% then disappear. >> NARRATOR: Rachel Greer worked 49:13.900 --> 49:17.100 align:left position:10%,start line:85% size:80% in product safety at Amazon, and worried that the site was being 49:17.100 --> 49:22.800 align:left position:10%,start line:85% size:80% flooded with untested and potentially unsafe products. 49:22.800 --> 49:25.530 align:left position:10%,start line:85% size:80% >> Are there proper warnings? Has it been safety-tested for 49:25.530 --> 49:28.070 align:left position:10%,start line:85% size:80% durability? If a child chews on it, will 49:28.070 --> 49:31.130 align:left position:10%,start line:85% size:80% the paint come off? Is that paint leaded? 49:31.130 --> 49:34.300 align:left position:10%,start line:85% size:80% >> Most people would assume that there's a pretty 49:34.300 --> 49:38.570 align:left position:10%,start line:85% size:80% high safety standard on Amazon. >> And that assumption would be 49:38.570 --> 49:42.870 align:left position:10%,start line:85% size:80% incorrect. >> NARRATOR: She says that's 49:42.870 --> 49:46.070 align:left position:10%,start line:85% size:80% because Amazon, like other tech companies, takes the position 49:46.070 --> 49:49.130 align:left position:10%,start line:85% size:80% that it's not legally responsible if its customers are 49:49.130 --> 49:53.030 align:left position:10%,start line:85% size:80% harmed by products sold by third parties on the site. 49:53.030 --> 49:56.900 align:left position:10%,start line:85% size:80% >> If someone buys something that causes harm at Walmart or 49:56.900 --> 50:00.130 align:left position:10%,start line:85% size:80% at Target, a consumer can sue Walmart or Target. 50:00.370 --> 50:02.170 align:left position:10%,start line:85% size:80% >> Right, 'cause no one's forcing you, when you come 50:02.170 --> 50:05.100 align:left position:10%,start line:85% size:80% into Walmart, to enter the doors of Walmart. 50:05.100 --> 50:07.270 align:left position:10%,start line:85% size:80% They aren't making you sign away your rights. 50:07.630 --> 50:10.330 align:left position:10%,start line:85% size:80% >> But when do you sign that when you go on Amazon.com? 50:10.330 --> 50:12.930 align:left position:10%,start line:85% size:80% >> When you make your account. When you accept the terms and 50:12.930 --> 50:17.570 align:left position:10%,start line:85% size:80% conditions. >> NARRATOR: People have been 50:17.570 --> 50:20.530 align:left position:10%,start line:85% size:80% challenging Amazon's terms and conditions in court. 50:20.530 --> 50:26.330 align:left position:10%,start line:85% size:80% Some have even been successful. >> Ultimately, who's on the hook 50:26.330 --> 50:29.630 align:left position:10%,start line:85% size:80% when a customer buys a dangerous product on Amazon? 50:29.630 --> 50:31.700 align:left position:10%,start line:85% size:80% Who takes ultimate responsibility for that? 50:32.130 --> 50:34.230 align:left position:10%,start line:85% size:80% >> Well, in the rare case where that, where something like that 50:34.230 --> 50:38.000 align:left position:10%,start line:85% size:80% happens, if it's a third-party seller, the sale is by a 50:38.000 --> 50:41.670 align:left position:10%,start line:85% size:80% third-party seller, and it is the seller's responsibility to, 50:41.670 --> 50:44.700 align:left position:10%,start line:85% size:80% to sell a legitimate product to a customer, and then, when 50:44.700 --> 50:48.170 align:left position:10%,start line:85% size:80% Amazon is the retailer, and we sell a product to the, to a 50:48.170 --> 50:51.530 align:left position:10%,start line:85% size:80% customer, then it's our obligation to make sure that we 50:51.530 --> 50:55.070 align:left position:10%,start line:85% size:80% understand the manufacturer and the supply chain for that 50:55.070 --> 50:59.430 align:left position:10%,start line:85% size:80% product and its, and its safety. >> But when the other 50:59.430 --> 51:02.970 align:left position:10%,start line:85% size:80% sellers are selling in your store, you're not responsible 51:02.970 --> 51:07.270 align:left position:10%,start line:85% size:80% for it ultimately, if they're selling your customer a 51:07.270 --> 51:11.130 align:left position:10%,start line:85% size:80% defective or dangerous product? >> I think the way things work 51:11.130 --> 51:17.070 align:left position:10%,start line:85% size:80% in the U.S. is that the seller of record is the person who is 51:17.070 --> 51:20.900 align:left position:10%,start line:85% size:80% setting the price and who is purchasing the product, and for 51:20.900 --> 51:24.000 align:left position:10%,start line:85% size:80% things not sold by Amazon-- and it says on the detail page, 51:24.000 --> 51:26.700 align:left position:10%,start line:85% size:80% it'll tell you who the seller is-- it's the seller's 51:26.700 --> 51:31.530 align:left position:10%,start line:85% size:80% responsibility for those things, and for us, it's very clear. 51:31.530 --> 51:34.330 align:left position:10%,start line:85% size:80% It says Amazon.com whenever we sell it. 51:34.330 --> 51:36.700 align:left position:10%,start line:85% size:80% >> Do you audit your sellers in terms of whether 51:36.700 --> 51:41.230 align:left position:10%,start line:85% size:80% they're actually providing safe products to your customers? 51:41.230 --> 51:43.670 align:left position:10%,start line:85% size:80% >> We do... You know, some of our sales... 51:43.670 --> 51:47.730 align:left position:10%,start line:85% size:80% So about, almost 60% of our sales are by third parties, 51:47.730 --> 51:51.800 align:left position:10%,start line:85% size:80% and those sales, some of them come directly from the third 51:51.800 --> 51:54.130 align:left position:10%,start line:85% size:80% party, so we're not involved at all. 51:54.130 --> 51:56.430 align:left position:10%,start line:85% size:80% >> But you take a cut. I mean, it's on your 51:56.430 --> 51:59.200 align:left position:10%,start line:85% size:80% infrastructure, it goes through Amazon.com, so, I mean... 51:59.200 --> 52:01.600 align:left position:10%,start line:85% size:80% >> Well, it's on our infrastructure in terms of the 52:01.600 --> 52:04.130 align:left position:10%,start line:85% size:80% website and payments, but we're not... 52:04.130 --> 52:06.330 align:left position:10%,start line:85% size:80% >> And fees that, you know, you're taking a cut of the 52:06.330 --> 52:08.830 align:left position:10%,start line:85% size:80% sale, right? >> Sure, sure, and we're 52:08.830 --> 52:11.700 align:left position:10%,start line:85% size:80% providing, you know, traffic that, that... 52:11.700 --> 52:14.230 align:left position:10%,start line:85% size:80% You know, it's kind of the way they think about marketing is 52:14.230 --> 52:16.800 align:left position:10%,start line:85% size:80% why they would pay that fee, but... 52:16.800 --> 52:23.100 align:left position:10%,start line:85% size:80% It's harder to, before an experience, inspect that, that 52:23.100 --> 52:25.570 align:left position:10%,start line:85% size:80% product. >> A South Carolina woman who 52:25.570 --> 52:28.230 align:left position:10%,start line:85% size:80% bought a hair dryer on Amazon said this happened. 52:28.230 --> 52:31.000 align:left position:10%,start line:85% size:80% >> Fire is coming out of the hair dryer. 52:31.000 --> 52:33.630 align:left position:10%,start line:85% size:80% >> NARRATOR: Amazon's approach has had consequences. 52:33.630 --> 52:36.470 align:left position:10%,start line:85% size:80% >> A hoverboard caused a fire that destroyed their home. 52:36.470 --> 52:38.870 align:left position:10%,start line:85% size:80% >> NARRATOR: Dangerous products were flagged by authorities in 52:38.870 --> 52:41.300 align:left position:10%,start line:85% size:80% Washington State. >> ...found dozens of school 52:41.300 --> 52:44.300 align:left position:10%,start line:85% size:80% supplies that had high levels of toxic metals. 52:44.300 --> 52:47.130 align:left position:10%,start line:85% size:80% >> NARRATOR: And a recent report found thousands of banned, 52:47.130 --> 52:51.500 align:left position:10%,start line:85% size:80% unsafe, or mislabeled products. >> I'm having a hard time 52:51.500 --> 52:55.070 align:left position:10%,start line:85% size:80% understanding something, which is that, that... 52:55.070 --> 52:58.830 align:left position:10%,start line:85% size:80% You know, Amazon's entire brand is about the customer, right? 52:59.230 --> 53:01.670 align:left position:10%,start line:85% size:80% >> Yes. >> That it's... 53:01.670 --> 53:04.070 align:left position:10%,start line:85% size:80% >> Oh, I reminded them of this over and over again. 53:04.070 --> 53:06.430 align:left position:10%,start line:85% size:80% >> You reminded them of what? 53:06.430 --> 53:09.130 align:left position:10%,start line:85% size:80% >> I said that no customer wants to buy an unsafe product. 53:09.130 --> 53:11.730 align:left position:10%,start line:85% size:80% No customer wants selection that harms their child. 53:11.730 --> 53:13.930 align:left position:10%,start line:85% size:80% No customer wants to buy something that burns down their 53:13.930 --> 53:18.000 align:left position:10%,start line:85% size:80% house because it looks cool and it's the latest, coolest thing. 53:18.000 --> 53:21.000 align:left position:10%,start line:85% size:80% >> Sitting here today, are you able to basically say 53:21.000 --> 53:25.300 align:left position:10%,start line:85% size:80% that the products that you sell on Amazon.com are safe? 53:25.300 --> 53:28.630 align:left position:10%,start line:85% size:80% >> What I can say is, we work really hard to make sure that 53:28.630 --> 53:31.300 align:left position:10%,start line:85% size:80% they're safe. We have... 53:31.300 --> 53:35.870 align:left position:10%,start line:85% size:80% We've spent $400 million in the last year on systems that seek 53:35.870 --> 53:39.330 align:left position:10%,start line:85% size:80% out things that are not safe, and, you know, there are 53:39.330 --> 53:42.800 align:left position:10%,start line:85% size:80% millions of sellers and hundreds of millions of products, and 53:42.800 --> 53:46.070 align:left position:10%,start line:85% size:80% our job is to, as fast as we can, weed out the ones that 53:46.070 --> 53:48.370 align:left position:10%,start line:85% size:80% don't belong on our site. We're going to have to be 53:48.370 --> 53:51.570 align:left position:10%,start line:85% size:80% vigilant as a retailer and as a technology company, and we are 53:51.570 --> 53:54.570 align:left position:10%,start line:85% size:80% definitely dedicated to, to protecting the safety of our 53:54.570 --> 53:57.700 align:left position:10%,start line:85% size:80% customers. >> NARRATOR: We heard that 53:57.700 --> 54:00.330 align:left position:10%,start line:85% size:80% concern for the customer over and over in our interviews with 54:00.330 --> 54:04.000 align:left position:10%,start line:85% size:80% Amazon executives. >> Customer trust in a company 54:04.000 --> 54:06.570 align:left position:10%,start line:85% size:80% like Amazon, it's sort of foundational. 54:06.570 --> 54:08.830 align:left position:10%,start line:85% size:80% >> Customer obsession is the first leadership principle, and 54:08.830 --> 54:13.030 align:left position:10%,start line:85% size:80% it, it's not a corporate slogan. >> We try to stay really focused 54:13.030 --> 54:15.630 align:left position:10%,start line:85% size:80% on customers. >> Very focused on, on 54:15.630 --> 54:17.500 align:left position:10%,start line:85% size:80% delivering results for our customers. 54:17.500 --> 54:19.830 align:left position:10%,start line:85% size:80% >> Providing a great customer experience that customers want. 54:19.830 --> 54:23.370 align:left position:10%,start line:85% size:80% >> Delivering that, that customer delight. 54:23.370 --> 54:25.870 align:left position:10%,start line:85% size:80% >> NARRATOR: This commitment to the customer, and to keeping 54:25.870 --> 54:29.800 align:left position:10%,start line:85% size:80% prices low, had another benefit: it helped them avoid running 54:29.800 --> 54:33.630 align:left position:10%,start line:85% size:80% afoul of regulators who enforce the nation's antitrust laws. 54:34.500 --> 54:37.300 align:left position:10%,start line:85% size:80% >> It's important to understand sort of that there's two 54:37.300 --> 54:41.730 align:left position:10%,start line:85% size:80% fundamental philosophies of antitrust, of anti-monopoly law. 54:41.730 --> 54:44.300 align:left position:10%,start line:85% size:80% You know, there's the traditional philosophy, in which 54:44.300 --> 54:48.300 align:left position:10%,start line:85% size:80% you, you want to break up all potential concentrations of 54:48.300 --> 54:52.970 align:left position:10%,start line:85% size:80% power that you can. But for the last 30 years, 54:52.970 --> 54:55.900 align:left position:10%,start line:85% size:80% there's been this change in how we do antitrust. 54:55.900 --> 55:00.370 align:left position:10%,start line:85% size:80% And this is the idea that the only purpose of antitrust should 55:00.370 --> 55:06.130 align:left position:10%,start line:85% size:80% be to drive prices lower, to serve the interest of the 55:06.130 --> 55:10.830 align:left position:10%,start line:85% size:80% consumer. >> NARRATOR: Lynn had been 55:10.830 --> 55:14.170 align:left position:10%,start line:85% size:80% urging regulators to take a more traditional approach and 55:14.170 --> 55:17.070 align:left position:10%,start line:85% size:80% examine whether the company was gaining market power in 55:17.070 --> 55:22.000 align:left position:10%,start line:85% size:80% exploitative ways: stifling fair competition, but keeping prices 55:22.000 --> 55:26.700 align:left position:10%,start line:85% size:80% low for consumers. >> We live in a society 55:26.700 --> 55:29.930 align:left position:10%,start line:85% size:80% of consumers, though, and seemingly there is some net 55:29.930 --> 55:33.600 align:left position:10%,start line:85% size:80% benefit to all of us when prices are low. 55:33.600 --> 55:35.930 align:left position:10%,start line:85% size:80% So, what's wrong with that view of things? 55:35.930 --> 55:38.670 align:left position:10%,start line:85% size:80% >> It's obviously good for people to... for all people if 55:38.670 --> 55:41.700 align:left position:10%,start line:85% size:80% we can drive down prices, if we have lower-priced drugs, if we 55:41.700 --> 55:44.430 align:left position:10%,start line:85% size:80% have books that anybody could buy. 55:44.430 --> 55:47.130 align:left position:10%,start line:85% size:80% That's a good thing. It's a good thing for society, 55:47.130 --> 55:49.730 align:left position:10%,start line:85% size:80% and it's a good thing for us as consumers. 55:49.730 --> 55:53.900 align:left position:10%,start line:85% size:80% But we're not only consumers, we're also citizens. 55:53.900 --> 55:57.470 align:left position:10%,start line:85% size:80% We're also producers. We're also people who think and 55:57.470 --> 56:01.930 align:left position:10%,start line:85% size:80% who make things and who grow things, and we want to have 56:01.930 --> 56:06.300 align:left position:10%,start line:85% size:80% access to open markets. >> NARRATOR: Once again, the 56:06.300 --> 56:09.970 align:left position:10%,start line:85% size:80% tension was most pronounced with book publishers. 56:09.970 --> 56:13.570 align:left position:10%,start line:85% size:80% Amazon was selling around 40% of all new books in America 56:13.570 --> 56:17.500 align:left position:10%,start line:85% size:80% and two-thirds of all electronic books, thanks to the success of 56:17.500 --> 56:20.930 align:left position:10%,start line:85% size:80% the Kindle. Then, one of the world's largest 56:20.930 --> 56:25.270 align:left position:10%,start line:85% size:80% publishers, Hachette, decided to push back. 56:25.270 --> 56:27.900 align:left position:10%,start line:85% size:80% Franklin Foer was one of its authors. 56:27.900 --> 56:32.270 align:left position:10%,start line:85% size:80% >> Hachette and Amazon set out to renegotiate their e-book 56:32.270 --> 56:35.300 align:left position:10%,start line:85% size:80% contract. And Hachette said, "No, we don't 56:35.300 --> 56:37.530 align:left position:10%,start line:85% size:80% accept the terms of your contract." 56:37.530 --> 56:41.030 align:left position:10%,start line:85% size:80% And Amazon basically said, "To hell with you, Hachette. 56:41.030 --> 56:43.530 align:left position:10%,start line:85% size:80% We're going to stop delivering your books. 56:43.530 --> 56:46.030 align:left position:10%,start line:85% size:80% If somebody searches for a Hachette title, we're going to 56:46.030 --> 56:47.900 align:left position:10%,start line:85% size:80% redirect them to another publisher." 56:48.830 --> 56:52.230 align:left position:10%,start line:85% size:80% >> Amazon's battle with Hachette and the authors that Hachette 56:52.230 --> 56:55.830 align:left position:10%,start line:85% size:80% publishes is heating up. >> NARRATOR: As Bezos's virtual 56:55.830 --> 56:59.370 align:left position:10%,start line:85% size:80% blockade dragged on for months. >> A bitter, seven-month 56:59.370 --> 57:01.400 align:left position:10%,start line:85% size:80% standoff... >> NARRATOR: Thousands of 57:01.400 --> 57:04.970 align:left position:10%,start line:85% size:80% authors, including bestsellers like Douglas Preston, were 57:04.970 --> 57:08.530 align:left position:10%,start line:85% size:80% caught in the middle. >> Some authors were losing 50% 57:08.530 --> 57:12.630 align:left position:10%,start line:85% size:80% to 90% of their sales from Amazon. 57:12.630 --> 57:16.470 align:left position:10%,start line:85% size:80% It was absolutely devastating to first-time authors. 57:16.470 --> 57:20.900 align:left position:10%,start line:85% size:80% It actually destroyed their careers. 57:20.900 --> 57:22.730 align:left position:10%,start line:85% size:80% >> Did you see your sales plummet? 57:22.730 --> 57:25.000 align:left position:10%,start line:85% size:80% >> I did, yes. I saw my sales plummet 57:25.000 --> 57:27.930 align:left position:10%,start line:85% size:80% tremendously. >> NARRATOR: In frustration, 57:27.930 --> 57:31.900 align:left position:10%,start line:85% size:80% Preston penned an open letter on behalf of all authors. 57:31.900 --> 57:34.770 align:left position:10%,start line:85% size:80% It was published in "The New York Times" with more than 900 57:34.770 --> 57:39.100 align:left position:10%,start line:85% size:80% signatures. >> We authors have loved Amazon. 57:39.100 --> 57:42.230 align:left position:10%,start line:85% size:80% We have enthusiastically supported it, and this is how 57:42.230 --> 57:45.100 align:left position:10%,start line:85% size:80% they treat us? This is not right. 57:45.900 --> 57:48.530 align:left position:10%,start line:85% size:80% >> Amazon has been accused of doing everything from raising 57:48.530 --> 57:51.200 align:left position:10%,start line:85% size:80% prices to deliberately delaying shipments. 57:51.200 --> 57:53.000 align:left position:10%,start line:85% size:80% >> Is this what happens when Jeff Bezos decides to flex his 57:53.000 --> 57:55.070 align:left position:10%,start line:85% size:80% muscles? >> NARRATOR: While Hachette and 57:55.070 --> 57:58.800 align:left position:10%,start line:85% size:80% Amazon were at an impasse, Douglas Preston, Franklin Foer, 57:58.800 --> 58:02.200 align:left position:10%,start line:85% size:80% and other authors went to Washington, and asked the Obama 58:02.200 --> 58:05.700 align:left position:10%,start line:85% size:80% administration to open an investigation. 58:05.700 --> 58:08.130 align:left position:10%,start line:85% size:80% >> I went to the Justice Department and I went to the 58:08.130 --> 58:11.830 align:left position:10%,start line:85% size:80% Federal Trade Commission with the Authors Guild, and we tried 58:11.830 --> 58:16.000 align:left position:10%,start line:85% size:80% to explain to them why this power was so dangerous. 58:16.000 --> 58:19.030 align:left position:10%,start line:85% size:80% We pointed it out of all the ways in which Amazon was 58:19.030 --> 58:22.530 align:left position:10%,start line:85% size:80% bullying the publishing industry. 58:22.530 --> 58:25.770 align:left position:10%,start line:85% size:80% >> The Department of Justice listened to us. 58:25.770 --> 58:30.330 align:left position:10%,start line:85% size:80% And their answer was essentially this: "Amazon is one of the most 58:30.330 --> 58:33.270 align:left position:10%,start line:85% size:80% popular companies in the country. 58:33.530 --> 58:36.400 align:left position:10%,start line:85% size:80% (camera clicks) They have brought tremendous 58:36.400 --> 58:40.600 align:left position:10%,start line:85% size:80% services to consumers, and they've brought lower prices." 58:40.600 --> 58:44.070 align:left position:10%,start line:85% size:80% And that we hadn't given them any kind of reason to open an 58:44.070 --> 58:47.100 align:left position:10%,start line:85% size:80% antitrust investigation. >> NARRATOR: Eventually, 58:47.100 --> 58:49.870 align:left position:10%,start line:85% size:80% Hachette and Amazon would settle their dispute, with 58:49.870 --> 58:53.600 align:left position:10%,start line:85% size:80% Amazon allowing Hachette to set its own prices for e-books, but 58:53.600 --> 58:57.670 align:left position:10%,start line:85% size:80% offering it incentives to keep them low. 58:57.670 --> 58:59.430 align:left position:10%,start line:85% size:80% >> It's great to be here at Amazon. 58:59.430 --> 59:03.600 align:left position:10%,start line:85% size:80% (crowd cheering) >> NARRATOR: Amazon would thrive 59:03.600 --> 59:07.100 align:left position:10%,start line:85% size:80% during the Obama years, and eventually account for nearly 59:07.100 --> 59:10.800 align:left position:10%,start line:85% size:80% 40% of all online commerce in the country. 59:10.800 --> 59:14.770 align:left position:10%,start line:85% size:80% >> Last year, during the busiest day of the Christmas rush, 59:14.770 --> 59:18.800 align:left position:10%,start line:85% size:80% customers around the world ordered more than 300 items from 59:18.800 --> 59:22.870 align:left position:10%,start line:85% size:80% Amazon every second. >> NARRATOR: But the complaints 59:22.870 --> 59:25.830 align:left position:10%,start line:85% size:80% about its tactics would continue, with retailers of all 59:25.830 --> 59:29.530 align:left position:10%,start line:85% size:80% kinds concerned that Amazon had become the online-shopping 59:29.530 --> 59:33.370 align:left position:10%,start line:85% size:80% gatekeeper. >> You've got to be on Amazon. 59:33.370 --> 59:36.900 align:left position:10%,start line:85% size:80% You have to be there, because that's where everyone is. 59:36.900 --> 59:40.300 align:left position:10%,start line:85% size:80% That... 100 million Prime subscribers. 59:40.300 --> 59:43.470 align:left position:10%,start line:85% size:80% They are the de facto e-commerce channel in the United States, 59:43.470 --> 59:47.430 align:left position:10%,start line:85% size:80% period, end of list. >> Amazon executives 59:47.430 --> 59:51.700 align:left position:10%,start line:85% size:80% have told us that there are many other options out there. 59:51.700 --> 59:54.000 align:left position:10%,start line:85% size:80% There is Walmart, there is Alibaba. 59:54.000 --> 59:58.830 align:left position:10%,start line:85% size:80% As a seller, you've got options. >> I've heard that response from 59:58.830 --> 1:00:03.330 align:left position:10%,start line:85% size:80% Amazon executives before, and we did that, we were listed, we 1:00:03.330 --> 1:00:07.100 align:left position:10%,start line:85% size:80% listed all of our products on every other online marketplace. 1:00:07.100 --> 1:00:11.900 align:left position:10%,start line:85% size:80% But it's a testament to just how good Amazon is. 1:00:11.900 --> 1:00:15.930 align:left position:10%,start line:85% size:80% All of the others that were non-Amazon combined did about 1:00:15.930 --> 1:00:20.370 align:left position:10%,start line:85% size:80% ten percent of what we were doing on Amazon. 1:00:20.370 --> 1:00:22.930 align:left position:10%,start line:85% size:80% >> NARRATOR: Businesses big and small have been accumulating 1:00:22.930 --> 1:00:25.930 align:left position:10%,start line:85% size:80% complaints about Amazon's hold on them. 1:00:25.930 --> 1:00:29.370 align:left position:10%,start line:85% size:80% >> On Amazon, the customer belongs to Amazon-- it doesn't 1:00:29.370 --> 1:00:31.100 align:left position:10%,start line:85% size:80% belong to the third-party seller. 1:00:31.100 --> 1:00:34.030 align:left position:10%,start line:85% size:80% You're basically renting the Amazon customer. 1:00:34.030 --> 1:00:36.570 align:left position:10%,start line:85% size:80% >> NARRATOR: James Thomson used to recruit brands to come onto 1:00:36.570 --> 1:00:40.030 align:left position:10%,start line:85% size:80% Amazon and now advises them on how to do business with the 1:00:40.030 --> 1:00:43.630 align:left position:10%,start line:85% size:80% company. >> I represent brands today that 1:00:43.630 --> 1:00:46.370 align:left position:10%,start line:85% size:80% face a number of challenges with Amazon. 1:00:46.370 --> 1:00:48.900 align:left position:10%,start line:85% size:80% >> NARRATOR: Among those challenges, businesses say that 1:00:48.900 --> 1:00:52.600 align:left position:10%,start line:85% size:80% Amazon has access to their valuable data, which gives it an 1:00:52.600 --> 1:00:55.200 align:left position:10%,start line:85% size:80% unfair advantage. They also complain about 1:00:55.200 --> 1:00:58.800 align:left position:10%,start line:85% size:80% increasingly higher fees to stay on the platform, and pressure to 1:00:58.800 --> 1:01:05.500 align:left position:10%,start line:85% size:80% use Amazon's warehouses and shipping services. 1:01:05.500 --> 1:01:08.870 align:left position:10%,start line:85% size:80% We spoke to numerous name-brand companies, but none would share 1:01:08.870 --> 1:01:12.570 align:left position:10%,start line:85% size:80% its grievances on camera. >> My account was suspended. 1:01:12.570 --> 1:01:14.770 align:left position:10%,start line:85% size:80% >> NARRATOR: Some small businesspeople have been 1:01:14.770 --> 1:01:17.130 align:left position:10%,start line:85% size:80% talking about their experiences-- good and bad-- 1:01:17.130 --> 1:01:18.600 align:left position:10%,start line:85% size:80% online. >> When you're selling on 1:01:18.600 --> 1:01:22.430 align:left position:10%,start line:85% size:80% Amazon, you're playing in someone else's playground. 1:01:22.430 --> 1:01:25.470 align:left position:10%,start line:85% size:80% >> Who gets placed where, whether or not your product 1:01:25.470 --> 1:01:27.900 align:left position:10%,start line:85% size:80% shows up in the search results... 1:01:28.330 --> 1:01:30.330 align:left position:10%,start line:85% size:80% >> They suspended my account without warning. 1:01:30.330 --> 1:01:33.930 align:left position:10%,start line:85% size:80% >> These are all things that are governed by Amazon's rules. 1:01:33.930 --> 1:01:36.800 align:left position:10%,start line:85% size:80% And if there's a dispute within that arena, if you feel you are 1:01:36.800 --> 1:01:41.170 align:left position:10%,start line:85% size:80% mistreated, you know, the judge and jury is Amazon. 1:01:41.170 --> 1:01:43.570 align:left position:10%,start line:85% size:80% >> They don't care, they'll just kill your account like that or 1:01:43.570 --> 1:01:45.800 align:left position:10%,start line:85% size:80% suspend it... >> There are all sorts of crazy 1:01:45.800 --> 1:01:49.170 align:left position:10%,start line:85% size:80% stories about why people get their accounts shut down on 1:01:49.170 --> 1:01:50.870 align:left position:10%,start line:85% size:80% Amazon. And it could take a week, it 1:01:50.870 --> 1:01:52.830 align:left position:10%,start line:85% size:80% could take months, it could be never before you're back online 1:01:52.830 --> 1:01:55.970 align:left position:10%,start line:85% size:80% again. Amazon has the upper hand and 1:01:55.970 --> 1:02:01.670 align:left position:10%,start line:85% size:80% the ability to basically take your business away from you at 1:02:01.670 --> 1:02:06.070 align:left position:10%,start line:85% size:80% any given moment. >> Selling on Amazon, take one. 1:02:06.070 --> 1:02:08.230 align:left position:10%,start line:85% size:80% >> NARRATOR: Amazon said third-party sellers account for 1:02:08.230 --> 1:02:10.930 align:left position:10%,start line:85% size:80% more than half of everything sold on the site. 1:02:10.930 --> 1:02:13.270 align:left position:10%,start line:85% size:80% >> I sell mini-longboard skateboards. 1:02:13.270 --> 1:02:15.170 align:left position:10%,start line:85% size:80% >> I sell mineral water. This is what I do. 1:02:15.170 --> 1:02:16.970 align:left position:10%,start line:85% size:80% >> NARRATOR: And it's committed to its sellers' 1:02:16.970 --> 1:02:20.400 align:left position:10%,start line:85% size:80% success-- proactively contacting them when their accounts are at 1:02:20.400 --> 1:02:24.230 align:left position:10%,start line:85% size:80% risk of suspension and offering an appeals process to resolve 1:02:24.230 --> 1:02:26.430 align:left position:10%,start line:85% size:80% disputes. >> You already have great 1:02:26.430 --> 1:02:28.900 align:left position:10%,start line:85% size:80% products. Scale up... 1:02:28.900 --> 1:02:31.470 align:left position:10%,start line:85% size:80% >> NARRATOR: But in the eyes of some businesses, Amazon has 1:02:31.470 --> 1:02:33.800 align:left position:10%,start line:85% size:80% essentially become like the railroads at the turn of the 1:02:33.800 --> 1:02:37.570 align:left position:10%,start line:85% size:80% last century that controlled the flow of commerce across the 1:02:37.570 --> 1:02:40.900 align:left position:10%,start line:85% size:80% country. >> Start selling today. 1:02:40.900 --> 1:02:43.670 align:left position:10%,start line:85% size:80% >> Do you see yourself as being kind of like the rails 1:02:43.670 --> 1:02:47.500 align:left position:10%,start line:85% size:80% for e-commerce, that sellers bring their goods to market 1:02:47.500 --> 1:02:49.230 align:left position:10%,start line:85% size:80% on your rails, through your marketplace? 1:02:49.670 --> 1:02:54.100 align:left position:10%,start line:85% size:80% >> I don't think of it that way, and here's why: the, the vast 1:02:54.100 --> 1:02:56.530 align:left position:10%,start line:85% size:80% majority of stuff that's... Well, all of the stuff that's 1:02:56.530 --> 1:02:59.800 align:left position:10%,start line:85% size:80% sold is manufactured, right? So it's manufactured, meaning 1:02:59.800 --> 1:03:03.300 align:left position:10%,start line:85% size:80% there are brands and factories that produce stuff and then sell 1:03:03.300 --> 1:03:07.230 align:left position:10%,start line:85% size:80% it. We're one percent of the retail 1:03:07.230 --> 1:03:10.130 align:left position:10%,start line:85% size:80% sales in the world, about. >> Well, you are the 1:03:10.130 --> 1:03:12.300 align:left position:10%,start line:85% size:80% biggest marketplace online, right? 1:03:12.300 --> 1:03:17.970 align:left position:10%,start line:85% size:80% >> No, so, again, I, I don't... The idea that there's an online, 1:03:17.970 --> 1:03:20.500 align:left position:10%,start line:85% size:80% distinct for brands to sell their stuff and distinct from 1:03:20.500 --> 1:03:24.300 align:left position:10%,start line:85% size:80% physical, just doesn't make sense to me, and we're far from 1:03:24.300 --> 1:03:28.330 align:left position:10%,start line:85% size:80% the largest retailer. So, I, I describe this as 1:03:28.330 --> 1:03:31.500 align:left position:10%,start line:85% size:80% retail, and we're competing against Walmart and Target and 1:03:31.500 --> 1:03:34.970 align:left position:10%,start line:85% size:80% Costco and Carrefour and Alibaba and Tmall and all kinds of folks 1:03:34.970 --> 1:03:39.200 align:left position:10%,start line:85% size:80% who are, are now selling both physical stores and online. 1:03:40.430 --> 1:03:43.370 align:left position:10%,start line:85% size:80% >> NARRATOR: In addition to pointing to other large 1:03:43.370 --> 1:03:47.900 align:left position:10%,start line:85% size:80% retailers, inside the company employees have been 1:03:47.900 --> 1:03:51.870 align:left position:10%,start line:85% size:80% schooled in how to talk about its size and power. 1:03:51.870 --> 1:03:54.370 align:left position:10%,start line:85% size:80% >> When I worked at Amazon, we had training specifically on the 1:03:54.370 --> 1:03:58.870 align:left position:10%,start line:85% size:80% use of terms like "monopoly." We were not allowed to use a 1:03:58.870 --> 1:04:02.300 align:left position:10%,start line:85% size:80% term like "market share." Amazon has what's known as 1:04:02.300 --> 1:04:06.000 align:left position:10%,start line:85% size:80% "market segment share." What is market segment? 1:04:06.000 --> 1:04:09.030 align:left position:10%,start line:85% size:80% What is market segment share? I don't know, but I know that 1:04:09.030 --> 1:04:12.870 align:left position:10%,start line:85% size:80% the lawyers at Amazon feel those terms are, are much safer than 1:04:12.870 --> 1:04:15.830 align:left position:10%,start line:85% size:80% using terms like market share. >> So market share was 1:04:15.830 --> 1:04:17.300 align:left position:10%,start line:85% size:80% something they were really concerned about. 1:04:17.300 --> 1:04:22.330 align:left position:10%,start line:85% size:80% >> Clearly somebody with the necessary legal training or PR 1:04:22.330 --> 1:04:26.770 align:left position:10%,start line:85% size:80% training recognized that Amazon was growing very quickly, and 1:04:26.770 --> 1:04:31.100 align:left position:10%,start line:85% size:80% when we were asked to use the term "market segment" and 1:04:31.100 --> 1:04:35.400 align:left position:10%,start line:85% size:80% "market segment share," in essence it's a polite way of 1:04:35.400 --> 1:04:39.700 align:left position:10%,start line:85% size:80% saying, "I'm not going to talk to you about how big we are." 1:04:39.700 --> 1:04:42.400 align:left position:10%,start line:85% size:80% >> NARRATOR: Since leaving Amazon 20 years ago, Shel 1:04:42.400 --> 1:04:45.070 align:left position:10%,start line:85% size:80% Kaphan has been watching the company with increasing 1:04:45.070 --> 1:04:49.330 align:left position:10%,start line:85% size:80% concern, and he's speaking about it for the first time. 1:04:49.330 --> 1:04:52.230 align:left position:10%,start line:85% size:80% >> I think that the characterization of Amazon as 1:04:52.230 --> 1:04:59.270 align:left position:10%,start line:85% size:80% being a ruthless competitor is true, and under the flag of 1:04:59.270 --> 1:05:03.600 align:left position:10%,start line:85% size:80% customer obsession, they can do a lot of things which might not 1:05:03.600 --> 1:05:06.670 align:left position:10%,start line:85% size:80% be good for people who aren't their customers. 1:05:07.230 --> 1:05:09.370 align:left position:10%,start line:85% size:80% >> I know you're not a legal scholar, but are you 1:05:09.370 --> 1:05:12.700 align:left position:10%,start line:85% size:80% basically concerned that Amazon is a monopoly? 1:05:12.900 --> 1:05:16.070 align:left position:10%,start line:85% size:80% >> I'm, I'm concerned that it has that type of power. 1:05:16.070 --> 1:05:18.770 align:left position:10%,start line:85% size:80% I think it, you know, whether you technically can call it a 1:05:18.770 --> 1:05:25.400 align:left position:10%,start line:85% size:80% monopoly or not, I don't know. ♪ ♪ 1:05:25.400 --> 1:05:30.070 align:left position:10%,start line:85% size:80% >> NARRATOR: That question has continued to loom over Amazon. 1:05:30.070 --> 1:05:33.500 align:left position:10%,start line:85% size:80% >> I think that Amazon is looking out, and the existential 1:05:33.500 --> 1:05:37.700 align:left position:10%,start line:85% size:80% threat that they may face is going to be from government. 1:05:38.570 --> 1:05:41.200 align:left position:10%,start line:85% size:80% It's whether or not policymakers are going to step 1:05:41.200 --> 1:05:45.270 align:left position:10%,start line:85% size:80% in and intervene and say, "You have too much power." 1:05:46.230 --> 1:05:49.000 align:left position:10%,start line:85% size:80% >> NARRATOR: For years, Bezos has been ramping up Amazon's 1:05:49.000 --> 1:05:52.770 align:left position:10%,start line:85% size:80% profile in Washington. >> Amazon has been lobbying the 1:05:52.770 --> 1:05:54.900 align:left position:10%,start line:85% size:80% F.A.A. to lift... >> Trying to cozy up to 1:05:54.900 --> 1:05:58.070 align:left position:10%,start line:85% size:80% politicians, so that they will give him the biggest tax breaks 1:05:58.070 --> 1:06:00.070 align:left position:10%,start line:85% size:80% around... >> NARRATOR: Spending millions a 1:06:00.070 --> 1:06:02.200 align:left position:10%,start line:85% size:80% year on lobbying. >> Amazon lobbied more 1:06:02.200 --> 1:06:04.870 align:left position:10%,start line:85% size:80% government entities than any other tech company. 1:06:04.870 --> 1:06:07.630 align:left position:10%,start line:85% size:80% >> NARRATOR: And hiring as its spokesman the former White House 1:06:07.630 --> 1:06:11.930 align:left position:10%,start line:85% size:80% press secretary Jay Carney. >> You've got an army of 1:06:11.930 --> 1:06:14.870 align:left position:10%,start line:85% size:80% lobbyists, many of whom have revolved in and out of 1:06:14.870 --> 1:06:17.830 align:left position:10%,start line:85% size:80% government, including yourself. What are you hoping to get for 1:06:17.830 --> 1:06:21.000 align:left position:10%,start line:85% size:80% all that lobbying spend and all that influence? 1:06:21.530 --> 1:06:23.570 align:left position:10%,start line:85% size:80% >> One of the things we discovered is, because of the 1:06:23.570 --> 1:06:26.000 align:left position:10%,start line:85% size:80% visibility of our company, but also the range of businesses 1:06:26.000 --> 1:06:28.900 align:left position:10%,start line:85% size:80% that we're in, we need subject-matter experts on food 1:06:28.900 --> 1:06:33.830 align:left position:10%,start line:85% size:80% safety, on transportation, on drones, on privacy. 1:06:34.430 --> 1:06:38.170 align:left position:10%,start line:85% size:80% And also, we can be a resource, an information provider to 1:06:38.170 --> 1:06:40.900 align:left position:10%,start line:85% size:80% policymakers and regulators. It's not lobbying in the 1:06:40.900 --> 1:06:43.070 align:left position:10%,start line:85% size:80% traditional sense, in terms of trying to persuade somebody to 1:06:43.070 --> 1:06:45.770 align:left position:10%,start line:85% size:80% do something, it's just answering questions and, and 1:06:45.770 --> 1:06:51.500 align:left position:10%,start line:85% size:80% providing data and information. >> NARRATOR: Bezos himself would 1:06:51.500 --> 1:06:55.370 align:left position:10%,start line:85% size:80% also become a presence in the capital, and eventually buy the 1:06:55.370 --> 1:06:58.300 align:left position:10%,start line:85% size:80% largest private residence in town. 1:06:58.670 --> 1:07:01.700 align:left position:10%,start line:85% size:80% >> Jeff Bezos never really showed much interest in 1:07:01.700 --> 1:07:05.900 align:left position:10%,start line:85% size:80% politics, but as he's cemented himself in the city, he's 1:07:05.900 --> 1:07:08.830 align:left position:10%,start line:85% size:80% started to acquire this physical presence. 1:07:09.270 --> 1:07:12.330 align:left position:10%,start line:85% size:80% He bought a mansion, then developed it into a place that 1:07:12.330 --> 1:07:15.530 align:left position:10%,start line:85% size:80% is explicitly designed to be social. 1:07:15.530 --> 1:07:18.900 align:left position:10%,start line:85% size:80% >> It has a big ballroom, I mean, it is designed to create a 1:07:18.900 --> 1:07:22.830 align:left position:10%,start line:85% size:80% real presence for him in the nation's capital, where he can 1:07:22.830 --> 1:07:27.130 align:left position:10%,start line:85% size:80% hobnob with the people who make decisions. 1:07:27.130 --> 1:07:29.900 align:left position:10%,start line:85% size:80% >> NARRATOR: He'd even bought the hometown newspaper... 1:07:29.900 --> 1:07:32.030 align:left position:10%,start line:85% size:80% >> Jeff Bezos sent a thunderbolt through the media world this 1:07:32.030 --> 1:07:34.030 align:left position:10%,start line:85% size:80% week... >> NARRATOR: Spending a quarter 1:07:34.030 --> 1:07:36.330 align:left position:10%,start line:85% size:80% of a billion dollars to rescue the struggling "Washington 1:07:36.330 --> 1:07:39.230 align:left position:10%,start line:85% size:80% Post." >> I do believe that democracy 1:07:39.230 --> 1:07:42.070 align:left position:10%,start line:85% size:80% dies in darkness. I think that the capital city 1:07:42.070 --> 1:07:46.170 align:left position:10%,start line:85% size:80% of the United States of America needs a paper like "The 1:07:46.170 --> 1:07:49.130 align:left position:10%,start line:85% size:80% Washington Post." >> I got to say, you know, full 1:07:49.130 --> 1:07:52.930 align:left position:10%,start line:85% size:80% credit to him, he hasn't intervened in any of the 1:07:52.930 --> 1:07:57.000 align:left position:10%,start line:85% size:80% coverage of the paper. And he's invested in the paper. 1:07:57.000 --> 1:08:02.130 align:left position:10%,start line:85% size:80% Every dollar of profit that the paper makes is plowed back into 1:08:02.130 --> 1:08:07.770 align:left position:10%,start line:85% size:80% making it a better paper. >> Bezos allowed the "Post" to 1:08:07.770 --> 1:08:11.130 align:left position:10%,start line:85% size:80% hire, to restock its newsroom, he reversed what had been an 1:08:11.130 --> 1:08:14.400 align:left position:10%,start line:85% size:80% atmosphere of sort of decline. I'd say "The Washington Post" 1:08:14.400 --> 1:08:17.270 align:left position:10%,start line:85% size:80% has really flourished under, under Bezos's ownership. 1:08:18.830 --> 1:08:21.100 align:left position:10%,start line:85% size:80% >> Let's cut this digital ribbon. 1:08:21.100 --> 1:08:23.470 align:left position:10%,start line:85% size:80% >> NARRATOR: At the time, critics saw a more cynical 1:08:23.470 --> 1:08:25.270 align:left position:10%,start line:85% size:80% motive. >> Perhaps he's buying "The 1:08:25.270 --> 1:08:27.030 align:left position:10%,start line:85% size:80% Washington Post" to buy some sort of protection. 1:08:27.030 --> 1:08:29.900 align:left position:10%,start line:85% size:80% >> Precisely. >> This deal could give him more 1:08:29.900 --> 1:08:33.630 align:left position:10%,start line:85% size:80% influence over politics. >> Nobody hangs out in 1:08:33.630 --> 1:08:38.700 align:left position:10%,start line:85% size:80% Washington, DC, just to go to the free museums. 1:08:38.700 --> 1:08:41.530 align:left position:10%,start line:85% size:80% You buy a home in Washington, you buy a newspaper in 1:08:41.530 --> 1:08:45.030 align:left position:10%,start line:85% size:80% Washington, because it is the most influential city in the 1:08:45.030 --> 1:08:49.430 align:left position:10%,start line:85% size:80% world, and you want to lay your hands on that power. 1:08:49.430 --> 1:08:53.170 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: Bezos saw a 1:08:53.170 --> 1:08:57.200 align:left position:10%,start line:85% size:80% business opportunity there, as well. 1:08:57.200 --> 1:08:59.900 align:left position:10%,start line:85% size:80% The Obama administration planned to modernize the federal 1:08:59.900 --> 1:09:03.630 align:left position:10%,start line:85% size:80% government by embracing cloud computing. 1:09:03.630 --> 1:09:06.870 align:left position:10%,start line:85% size:80% Bezos had been quietly building a revolutionary cloud computing 1:09:06.870 --> 1:09:09.870 align:left position:10%,start line:85% size:80% business. He called it Amazon Web 1:09:09.870 --> 1:09:13.870 align:left position:10%,start line:85% size:80% Services. >> It's basically computing 1:09:13.870 --> 1:09:17.270 align:left position:10%,start line:85% size:80% power in the cloud, but really it's Amazon's server farms 1:09:17.270 --> 1:09:21.030 align:left position:10%,start line:85% size:80% around the world that give people access to the kind of 1:09:21.030 --> 1:09:24.870 align:left position:10%,start line:85% size:80% technology services they need. >> NARRATOR: To keep Amazon 1:09:24.870 --> 1:09:28.470 align:left position:10%,start line:85% size:80% running, Bezos had developed an unprecedented digital 1:09:28.470 --> 1:09:31.670 align:left position:10%,start line:85% size:80% infrastructure. He realized he could rent parts 1:09:31.670 --> 1:09:35.070 align:left position:10%,start line:85% size:80% of it out, not just to businesses, but also to the 1:09:35.070 --> 1:09:39.330 align:left position:10%,start line:85% size:80% government. >> Our infrastructure is built 1:09:39.330 --> 1:09:42.100 align:left position:10%,start line:85% size:80% to satisfy the security standards of the most 1:09:42.100 --> 1:09:45.570 align:left position:10%,start line:85% size:80% risk-sensitive organizations. >> He's already got a huge edge 1:09:45.570 --> 1:09:48.270 align:left position:10%,start line:85% size:80% over the other big competitors in it. 1:09:48.270 --> 1:09:53.300 align:left position:10%,start line:85% size:80% So he wants to take that lead and capture the U.S. government. 1:09:54.900 --> 1:09:57.970 align:left position:10%,start line:85% size:80% >> NARRATOR: In 2013, he got a major boost when it was 1:09:57.970 --> 1:10:00.830 align:left position:10%,start line:85% size:80% revealed that Amazon Web Services had designed a 1:10:00.830 --> 1:10:05.930 align:left position:10%,start line:85% size:80% computing cloud for the C.I.A. >> Amazon Web Services was 1:10:05.930 --> 1:10:09.300 align:left position:10%,start line:85% size:80% awarded a ten-year contract for $600 million. 1:10:09.300 --> 1:10:11.970 align:left position:10%,start line:85% size:80% >> Amazon is helping the C.I.A. build a secure cloud computer 1:10:11.970 --> 1:10:14.100 align:left position:10%,start line:85% size:80% network... >> The C.I.A. contract was 1:10:14.100 --> 1:10:17.000 align:left position:10%,start line:85% size:80% probably one of the best things that happened to Amazon's cloud 1:10:17.000 --> 1:10:19.700 align:left position:10%,start line:85% size:80% business. It lifted all doubts about the 1:10:19.700 --> 1:10:23.900 align:left position:10%,start line:85% size:80% security of the cloud and on whether you could trust Amazon 1:10:23.900 --> 1:10:27.670 align:left position:10%,start line:85% size:80% with your most precious data. >> The message to the world is, 1:10:27.670 --> 1:10:31.000 align:left position:10%,start line:85% size:80% "If the C.I.A. trusts Amazon with its data, then maybe other 1:10:31.000 --> 1:10:34.230 align:left position:10%,start line:85% size:80% companies and government institutions can, as well." 1:10:34.230 --> 1:10:37.370 align:left position:10%,start line:85% size:80% >> NARRATOR: And they did. >> Experience it with Expedia. 1:10:37.370 --> 1:10:40.630 align:left position:10%,start line:85% size:80% >> NARRATOR: A.W.S. became by far the world's leading 1:10:40.630 --> 1:10:43.970 align:left position:10%,start line:85% size:80% cloud-computing platform. >> On CBS. 1:10:43.970 --> 1:10:46.900 align:left position:10%,start line:85% size:80% >> NARRATOR: Today, more than a million businesses, as well as 1:10:46.900 --> 1:10:51.900 align:left position:10%,start line:85% size:80% PBS, pay Amazon to store and manage their data. 1:10:51.900 --> 1:10:54.300 align:left position:10%,start line:85% size:80% >> NARRATOR: Bezos had again anticipated the next frontier in 1:10:54.300 --> 1:10:59.600 align:left position:10%,start line:85% size:80% technology, and had made himself indispensable to it. 1:10:59.600 --> 1:11:02.800 align:left position:10%,start line:85% size:80% >> What Jeff Bezos is after is really creating a company that 1:11:02.800 --> 1:11:06.200 align:left position:10%,start line:85% size:80% is the infrastructure, that owns the infrastructure for how 1:11:06.200 --> 1:11:09.800 align:left position:10%,start line:85% size:80% commerce is done. And that's an incredibly 1:11:09.800 --> 1:11:13.130 align:left position:10%,start line:85% size:80% powerful place to be. ♪ ♪ 1:11:13.130 --> 1:11:16.830 align:left position:10%,start line:85% size:80% >> Please welcome chief executive officer of Amazon Web 1:11:16.830 --> 1:11:20.730 align:left position:10%,start line:85% size:80% Services Andy Jassy. >> NARRATOR: Andy Jassy created 1:11:20.730 --> 1:11:24.200 align:left position:10%,start line:85% size:80% and runs A.W.S. He credits the service with 1:11:24.200 --> 1:11:27.800 align:left position:10%,start line:85% size:80% making it easier to do business and sparking innovation 1:11:27.800 --> 1:11:31.470 align:left position:10%,start line:85% size:80% throughout the economy. >> Look at what A.W.S. has 1:11:31.470 --> 1:11:34.400 align:left position:10%,start line:85% size:80% enabled with regard to change in our society. 1:11:34.400 --> 1:11:38.670 align:left position:10%,start line:85% size:80% Look at, Netflix changed the way that we consume digital content, 1:11:38.670 --> 1:11:44.300 align:left position:10%,start line:85% size:80% and Airbnb changed the way that we get accommodations, and Hola 1:11:44.300 --> 1:11:47.170 align:left position:10%,start line:85% size:80% and Grab and Lyft and Uber changed the way that we get 1:11:47.170 --> 1:11:50.370 align:left position:10%,start line:85% size:80% transportation. A.W.S. has enabled, has been a 1:11:50.370 --> 1:11:55.270 align:left position:10%,start line:85% size:80% part of enabling all these huge innovations and changes in 1:11:55.270 --> 1:11:58.270 align:left position:10%,start line:85% size:80% consumer experiences that have, have made life better for 1:11:58.270 --> 1:12:01.100 align:left position:10%,start line:85% size:80% people. >> And we're the cloud with the 1:12:01.100 --> 1:12:04.270 align:left position:10%,start line:85% size:80% most capabilities, the most innovation, the most customers. 1:12:04.270 --> 1:12:07.530 align:left position:10%,start line:85% size:80% >> NARRATOR: The division generated $35 billion in sales 1:12:07.530 --> 1:12:09.630 align:left position:10%,start line:85% size:80% last year. >> Amazon Web Services. 1:12:09.630 --> 1:12:13.470 align:left position:10%,start line:85% size:80% >> Yes! >> Build On. 1:12:13.470 --> 1:12:16.430 align:left position:10%,start line:85% size:80% >> NARRATOR: The success of A.W.S. gave Bezos billions to 1:12:16.430 --> 1:12:20.230 align:left position:10%,start line:85% size:80% expand Amazon from a company that sells everything to a 1:12:20.230 --> 1:12:25.770 align:left position:10%,start line:85% size:80% company that does everything. A top priority... 1:12:25.770 --> 1:12:30.430 align:left position:10%,start line:85% size:80% >> To boldly go where no man has gone before. 1:12:30.430 --> 1:12:32.970 align:left position:10%,start line:85% size:80% >> NARRATOR: ...was to create the sci-fi future he'd fallen in 1:12:32.970 --> 1:12:38.600 align:left position:10%,start line:85% size:80% love with as a child. >> Gentlemen, this computer has 1:12:38.600 --> 1:12:42.230 align:left position:10%,start line:85% size:80% an auditory sensor. It can, in effect, hear sounds. 1:12:42.230 --> 1:12:44.870 align:left position:10%,start line:85% size:80% >> NARRATOR: A world of artificial intelligence, in 1:12:44.870 --> 1:12:49.300 align:left position:10%,start line:85% size:80% which computers can think and make decisions for humans and 1:12:49.300 --> 1:12:52.770 align:left position:10%,start line:85% size:80% about humans. >> Jeff Bezos is a big fan 1:12:52.770 --> 1:12:56.770 align:left position:10%,start line:85% size:80% of "Star Trek." He, he admits that that was on 1:12:56.770 --> 1:13:01.830 align:left position:10%,start line:85% size:80% his brain when he came up with the idea that Amazon should be 1:13:01.830 --> 1:13:06.630 align:left position:10%,start line:85% size:80% pursuing a little disk that you can bark commands into. 1:13:06.630 --> 1:13:09.330 align:left position:10%,start line:85% size:80% >> Stop. >> This is his "Beam me up, 1:13:09.330 --> 1:13:14.370 align:left position:10%,start line:85% size:80% Scotty" fantasy realized. >> We started working on this 1:13:14.370 --> 1:13:17.830 align:left position:10%,start line:85% size:80% device. And our, our vision was, in the 1:13:17.830 --> 1:13:20.900 align:left position:10%,start line:85% size:80% long term, it would become the Star Trek computer. 1:13:20.900 --> 1:13:23.430 align:left position:10%,start line:85% size:80% >> When it first arrived from Amazon, I didn't know what it 1:13:23.430 --> 1:13:26.630 align:left position:10%,start line:85% size:80% was. >> NARRATOR: In 2014, Bezos's 1:13:26.630 --> 1:13:30.500 align:left position:10%,start line:85% size:80% talking computer, the Amazon Echo, hit the market. 1:13:30.500 --> 1:13:33.000 align:left position:10%,start line:85% size:80% >> Is it for me? >> It's for everyone. 1:13:33.000 --> 1:13:36.430 align:left position:10%,start line:85% size:80% >> NARRATOR: The voice known as Alexa would embed Amazon deeper 1:13:36.430 --> 1:13:39.100 align:left position:10%,start line:85% size:80% into the lives of millions of people. 1:13:39.100 --> 1:13:42.270 align:left position:10%,start line:85% size:80% >> Alexa, what do you do? >> I can play music, answer 1:13:42.270 --> 1:13:45.630 align:left position:10%,start line:85% size:80% questions, get the news and weather. 1:13:45.630 --> 1:13:49.530 align:left position:10%,start line:85% size:80% >> They call it a personal assistant, and just that term 1:13:49.530 --> 1:13:53.830 align:left position:10%,start line:85% size:80% implies this intimate connection that we then begin to develop 1:13:53.830 --> 1:13:58.970 align:left position:10%,start line:85% size:80% with Amazon. >> Alexa, sing the ABC song. 1:13:58.970 --> 1:14:03.570 align:left position:10%,start line:85% size:80% >> ♪ A, B, C, D, E, F... ♪ >> I believe that when we think 1:14:03.570 --> 1:14:07.500 align:left position:10%,start line:85% size:80% about the future and the future with artificial intelligence, 1:14:07.500 --> 1:14:11.600 align:left position:10%,start line:85% size:80% given where we currently are today, Alexa in some ways 1:14:11.600 --> 1:14:15.030 align:left position:10%,start line:85% size:80% represents the moment that it becomes seamlessly interwoven 1:14:15.030 --> 1:14:18.530 align:left position:10%,start line:85% size:80% with our lives. >> Alexa, how many teaspoons are 1:14:18.530 --> 1:14:21.100 align:left position:10%,start line:85% size:80% in a tablespoon? >> One tablespoon equals three 1:14:21.100 --> 1:14:22.870 align:left position:10%,start line:85% size:80% teaspoons. >> Oh, okay. 1:14:22.870 --> 1:14:26.970 align:left position:10%,start line:85% size:80% >> And the problem is that we forget that it's there. 1:14:26.970 --> 1:14:30.730 align:left position:10%,start line:85% size:80% >> Alexa, lights on. >> Okay. 1:14:30.730 --> 1:14:34.330 align:left position:10%,start line:85% size:80% >> NARRATOR: But Alexa is also listening-- and she's learning. 1:14:34.330 --> 1:14:37.370 align:left position:10%,start line:85% size:80% >> I'm answering questions and learning more. 1:14:37.370 --> 1:14:40.000 align:left position:10%,start line:85% size:80% >> NARRATOR: And that helps Amazon in the race to dominate 1:14:40.000 --> 1:14:42.770 align:left position:10%,start line:85% size:80% artificial intelligence. >> Alexa... 1:14:42.770 --> 1:14:45.230 align:left position:10%,start line:85% size:80% >> Every time you ask Alexa something, you're making the 1:14:45.230 --> 1:14:47.800 align:left position:10%,start line:85% size:80% Alexa algorithm better. It's one of the reasons why 1:14:47.800 --> 1:14:51.000 align:left position:10%,start line:85% size:80% Amazon, having had a head start, is able to kind of preserve that 1:14:51.000 --> 1:14:53.430 align:left position:10%,start line:85% size:80% head start, because they've got the most data of anyone. 1:14:54.770 --> 1:14:59.000 align:left position:10%,start line:85% size:80% >> Alexa is one more way for Amazon to gather extremely 1:14:59.000 --> 1:15:01.630 align:left position:10%,start line:85% size:80% valuable data. And this data collection is 1:15:01.630 --> 1:15:03.970 align:left position:10%,start line:85% size:80% extremely important to this business model. 1:15:03.970 --> 1:15:06.970 align:left position:10%,start line:85% size:80% It's extremely hard to do, and, you know, convincing people to 1:15:06.970 --> 1:15:09.630 align:left position:10%,start line:85% size:80% just deploy something like this in their home is a brilliant 1:15:09.630 --> 1:15:13.030 align:left position:10%,start line:85% size:80% trick. >> NARRATOR: Dave Limp is 1:15:13.030 --> 1:15:16.930 align:left position:10%,start line:85% size:80% Amazon's head of devices. >> How is it that you 1:15:16.930 --> 1:15:20.570 align:left position:10%,start line:85% size:80% convinced tens of millions of people to put what is 1:15:20.570 --> 1:15:23.270 align:left position:10%,start line:85% size:80% essentially a, a listening device in their homes? 1:15:23.900 --> 1:15:26.230 align:left position:10%,start line:85% size:80% >> Well, I, I would first disagree with the premise. 1:15:26.230 --> 1:15:28.730 align:left position:10%,start line:85% size:80% It doesn't, it's not a listening device. 1:15:28.730 --> 1:15:31.930 align:left position:10%,start line:85% size:80% The, the device in its core is... 1:15:31.930 --> 1:15:34.300 align:left position:10%,start line:85% size:80% It has a detector on it. We call it internally a 1:15:34.300 --> 1:15:37.230 align:left position:10%,start line:85% size:80% "wake-word engine." And that detector is 1:15:37.230 --> 1:15:40.130 align:left position:10%,start line:85% size:80% listening-- not really listening-- it's detecting one 1:15:40.130 --> 1:15:44.370 align:left position:10%,start line:85% size:80% thing and one thing only, which is the word you've said that you 1:15:44.370 --> 1:15:47.830 align:left position:10%,start line:85% size:80% want to get the attention of that Echo. 1:15:47.830 --> 1:15:50.630 align:left position:10%,start line:85% size:80% >> NARRATOR: Once the device is awake and the blue light is on, 1:15:50.630 --> 1:15:54.130 align:left position:10%,start line:85% size:80% it's recording. And last year, it was revealed 1:15:54.130 --> 1:15:57.870 align:left position:10%,start line:85% size:80% that Amazon employs thousands of people around the world to 1:15:57.870 --> 1:16:01.500 align:left position:10%,start line:85% size:80% listen and transcribe some of those recordings to help train 1:16:01.500 --> 1:16:03.600 align:left position:10%,start line:85% size:80% the system. >> Do you think that you 1:16:03.600 --> 1:16:06.530 align:left position:10%,start line:85% size:80% did a good enough job of disclosing that to consumers? 1:16:06.530 --> 1:16:09.700 align:left position:10%,start line:85% size:80% That, that there are humans involved in listening to these 1:16:09.700 --> 1:16:14.130 align:left position:10%,start line:85% size:80% recordings? >> We, we try to articulate what 1:16:14.130 --> 1:16:16.630 align:left position:10%,start line:85% size:80% we're doing with our products as clearly as we can. 1:16:16.630 --> 1:16:21.000 align:left position:10%,start line:85% size:80% But if I could go back in time, and I could be more clear, and 1:16:21.000 --> 1:16:26.100 align:left position:10%,start line:85% size:80% the team could be more clear, on how we were using human beings 1:16:26.100 --> 1:16:30.100 align:left position:10%,start line:85% size:80% to annotate a small percentage of the data, I would, for sure. 1:16:30.100 --> 1:16:32.370 align:left position:10%,start line:85% size:80% What I would say, though, is that once we realized that 1:16:32.370 --> 1:16:34.770 align:left position:10%,start line:85% size:80% customers didn't clearly understand this, and within a 1:16:34.770 --> 1:16:37.530 align:left position:10%,start line:85% size:80% couple of days, we added an opt-out feature, so that 1:16:37.530 --> 1:16:40.770 align:left position:10%,start line:85% size:80% customers could turn off annotation if they, if they so 1:16:40.770 --> 1:16:44.170 align:left position:10%,start line:85% size:80% chose. And then within a month or two 1:16:44.170 --> 1:16:46.300 align:left position:10%,start line:85% size:80% later, we allowed people to auto-delete data, which they 1:16:46.300 --> 1:16:48.930 align:left position:10%,start line:85% size:80% also asked for within that, within that time frame. 1:16:48.930 --> 1:16:51.130 align:left position:10%,start line:85% size:80% You know, we're not going to always be perfect, but when we 1:16:51.130 --> 1:16:53.870 align:left position:10%,start line:85% size:80% make mistakes, I think the key is that we correct them very 1:16:53.870 --> 1:16:57.730 align:left position:10%,start line:85% size:80% quickly on behalf of customers. >> NARRATOR: But even one of the 1:16:57.730 --> 1:17:01.730 align:left position:10%,start line:85% size:80% founders of Amazon Web Services approaches his Alexa devices 1:17:01.730 --> 1:17:04.230 align:left position:10%,start line:85% size:80% with caution. >> When do you turn off 1:17:04.230 --> 1:17:07.470 align:left position:10%,start line:85% size:80% your Alexa? >> I turn off my Alexa when I 1:17:07.470 --> 1:17:11.400 align:left position:10%,start line:85% size:80% know for a fact that the conversation that I am going to 1:17:11.400 --> 1:17:16.230 align:left position:10%,start line:85% size:80% have, or, or whenever I just want to have a private moment. 1:17:16.230 --> 1:17:18.970 align:left position:10%,start line:85% size:80% I don't want certain conversations to be heard by 1:17:18.970 --> 1:17:24.530 align:left position:10%,start line:85% size:80% humans, conversations that I know for a fact are not things 1:17:24.530 --> 1:17:28.730 align:left position:10%,start line:85% size:80% that should not be shared, then I actually turn off those 1:17:28.730 --> 1:17:33.970 align:left position:10%,start line:85% size:80% particular listening devices. >> We have had an incredible 1:17:33.970 --> 1:17:35.970 align:left position:10%,start line:85% size:80% year. The team has invented a lot on 1:17:35.970 --> 1:17:39.130 align:left position:10%,start line:85% size:80% behalf of customers, and I cannot wait to show you what we 1:17:39.130 --> 1:17:41.400 align:left position:10%,start line:85% size:80% have. >> NARRATOR: So far, Limp and 1:17:41.400 --> 1:17:44.170 align:left position:10%,start line:85% size:80% his team have made Alexa compatible with more than 1:17:44.170 --> 1:17:48.270 align:left position:10%,start line:85% size:80% 100,000 products. >> Echo Frames allow you to get 1:17:48.270 --> 1:17:51.530 align:left position:10%,start line:85% size:80% done more around you and be more present in the everyday. 1:17:52.200 --> 1:17:55.500 align:left position:10%,start line:85% size:80% >> Now they're going to know more about you than anyone 1:17:55.500 --> 1:17:58.970 align:left position:10%,start line:85% size:80% knows. They're trying to move as 1:17:58.970 --> 1:18:04.370 align:left position:10%,start line:85% size:80% intimately as possible and as quietly as possible into 1:18:04.370 --> 1:18:08.730 align:left position:10%,start line:85% size:80% everyday life. >> Echo Loop is a smart ring, 1:18:08.730 --> 1:18:11.900 align:left position:10%,start line:85% size:80% packed with ways to stay on top of your day. 1:18:11.900 --> 1:18:16.900 align:left position:10%,start line:85% size:80% >> Amazon wants to have the entire environment essentially 1:18:16.900 --> 1:18:19.530 align:left position:10%,start line:85% size:80% miked. >> Alexa, start my running 1:18:19.530 --> 1:18:22.100 align:left position:10%,start line:85% size:80% playlist. >> They want your walk in the 1:18:22.100 --> 1:18:25.800 align:left position:10%,start line:85% size:80% park, they want your run down the city street. 1:18:25.800 --> 1:18:29.230 align:left position:10%,start line:85% size:80% >> Nationwide's teamed up with Amazon to bring you the all-new 1:18:29.230 --> 1:18:31.330 align:left position:10%,start line:85% size:80% Echo Auto. >> They want what you do in your 1:18:31.330 --> 1:18:33.730 align:left position:10%,start line:85% size:80% car, they want what you do in your home. 1:18:33.730 --> 1:18:36.970 align:left position:10%,start line:85% size:80% >> Amazon Smart Oven. >> Alexa, bake for 30 minutes at 1:18:36.970 --> 1:18:39.300 align:left position:10%,start line:85% size:80% 350 degrees. (oven beeps) 1:18:39.300 --> 1:18:42.270 align:left position:10%,start line:85% size:80% >> All these intimacies, all this insight is being 1:18:42.270 --> 1:18:45.900 align:left position:10%,start line:85% size:80% integrated, analyzed and integrated. 1:18:45.900 --> 1:18:50.730 align:left position:10%,start line:85% size:80% >> Alexa, alarm off. >> That is an extraordinary kind 1:18:50.730 --> 1:18:55.400 align:left position:10%,start line:85% size:80% of power that has never before existed. 1:18:55.400 --> 1:18:58.500 align:left position:10%,start line:85% size:80% >> NARRATOR: After Alexa, Amazon would go on to spend nearly a 1:18:58.500 --> 1:19:01.930 align:left position:10%,start line:85% size:80% billion dollars to buy Ring... >> Hey, bud, the police are on 1:19:01.930 --> 1:19:03.770 align:left position:10%,start line:85% size:80% the way. >> NARRATOR: A doorbell camera 1:19:03.770 --> 1:19:08.500 align:left position:10%,start line:85% size:80% and app that Amazon describes as "the new neighborhood watch." 1:19:08.500 --> 1:19:10.900 align:left position:10%,start line:85% size:80% >> Hey, get away! >> Get out of there! 1:19:10.900 --> 1:19:13.970 align:left position:10%,start line:85% size:80% >> NARRATOR: To promote it, Amazon has enlisted the help of 1:19:13.970 --> 1:19:15.830 align:left position:10%,start line:85% size:80% hundreds of local police departments. 1:19:15.830 --> 1:19:20.000 align:left position:10%,start line:85% size:80% >> It's a phenomenal tool to assist detectives. 1:19:20.000 --> 1:19:22.070 align:left position:10%,start line:85% size:80% >> NARRATOR: They give them access to a portal to request 1:19:22.070 --> 1:19:26.830 align:left position:10%,start line:85% size:80% footage and have given free cameras to hand out-- and 1:19:26.830 --> 1:19:30.200 align:left position:10%,start line:85% size:80% talking points. >> This system is so simple to 1:19:30.200 --> 1:19:32.730 align:left position:10%,start line:85% size:80% use... >> You have Amazon in 1:19:32.730 --> 1:19:35.070 align:left position:10%,start line:85% size:80% partnership with police departments, who have basically 1:19:35.070 --> 1:19:39.400 align:left position:10%,start line:85% size:80% turned policemen into, like, Avon salespeople for Amazon 1:19:39.400 --> 1:19:42.800 align:left position:10%,start line:85% size:80% Ring. They have given police 1:19:42.800 --> 1:19:47.630 align:left position:10%,start line:85% size:80% departments talking points and marketing materials to encourage 1:19:47.630 --> 1:19:52.230 align:left position:10%,start line:85% size:80% the installation of Ring by community residents. 1:19:52.230 --> 1:19:54.300 align:left position:10%,start line:85% size:80% None of this was public knowledge. 1:19:54.300 --> 1:19:58.430 align:left position:10%,start line:85% size:80% >> And this is Ring's first indoor cam. 1:19:58.430 --> 1:20:01.600 align:left position:10%,start line:85% size:80% It is... cute, is what I would say. 1:20:01.600 --> 1:20:03.530 align:left position:10%,start line:85% size:80% >> NARRATOR: Amazon has continued to expand the scope 1:20:03.530 --> 1:20:06.930 align:left position:10%,start line:85% size:80% of Ring. Last fall, Dave Limp unveiled a 1:20:06.930 --> 1:20:11.230 align:left position:10%,start line:85% size:80% version designed to monitor the inside of people's homes. 1:20:11.230 --> 1:20:14.670 align:left position:10%,start line:85% size:80% Within weeks, hackers discovered a way to terrorize Ring 1:20:14.670 --> 1:20:31.800 align:left position:10%,start line:85% size:80% customers. >> Did you see that 1:20:31.800 --> 1:20:34.100 align:left position:10%,start line:85% size:80% video? >> I did see that video. 1:20:34.100 --> 1:20:36.170 align:left position:10%,start line:85% size:80% >> What did you think of it? 1:20:36.170 --> 1:20:38.530 align:left position:10%,start line:85% size:80% >> I think that that is a industry problem. 1:20:38.530 --> 1:20:41.970 align:left position:10%,start line:85% size:80% It's not just about the, a Ring camera-- it could be about 1:20:41.970 --> 1:20:45.300 align:left position:10%,start line:85% size:80% anybody's cameras. It's about any device in that... 1:20:46.670 --> 1:20:49.330 align:left position:10%,start line:85% size:80% And we've already investigated that one to make sure what, what 1:20:49.330 --> 1:20:52.170 align:left position:10%,start line:85% size:80% the root cause was. What we want to be able to do 1:20:52.170 --> 1:20:54.170 align:left position:10%,start line:85% size:80% in those cases is, we want to minimize them. 1:20:54.170 --> 1:20:56.600 align:left position:10%,start line:85% size:80% We'd like to detect them. And we also want to build tools 1:20:56.600 --> 1:21:00.130 align:left position:10%,start line:85% size:80% that give them the ability so that doesn't... that, that makes 1:21:00.130 --> 1:21:02.600 align:left position:10%,start line:85% size:80% it harder for those kinds of attacks to happen. 1:21:02.600 --> 1:21:04.070 align:left position:10%,start line:85% size:80% There's a lot of bad people in this world. 1:21:04.470 --> 1:21:07.670 align:left position:10%,start line:85% size:80% >> Here's a device that you had described as cute and 1:21:07.670 --> 1:21:11.930 align:left position:10%,start line:85% size:80% seems harmless, and I'm just wondering whether you're being 1:21:11.930 --> 1:21:15.830 align:left position:10%,start line:85% size:80% straight with people about the attendant risks to your 1:21:15.830 --> 1:21:18.570 align:left position:10%,start line:85% size:80% customers that you are obsessed with, supposedly. 1:21:19.670 --> 1:21:22.270 align:left position:10%,start line:85% size:80% >> Well, it's not supposedly, we are obsessed with customers. 1:21:22.270 --> 1:21:26.100 align:left position:10%,start line:85% size:80% I, I would say that we are trying to build security 1:21:26.100 --> 1:21:30.800 align:left position:10%,start line:85% size:80% features at every level of the stack: operating systems, 1:21:30.800 --> 1:21:36.170 align:left position:10%,start line:85% size:80% authentication, fraud detection. We offer things that customers 1:21:36.170 --> 1:21:39.670 align:left position:10%,start line:85% size:80% can turn on that make it even, make it even harder for those 1:21:39.670 --> 1:21:42.900 align:left position:10%,start line:85% size:80% attacks to happen. >> Yo, what's up, how's your 1:21:42.900 --> 1:21:45.200 align:left position:10%,start line:85% size:80% day? >> Who is that? 1:21:45.200 --> 1:21:47.570 align:left position:10%,start line:85% size:80% >> What's going on, buddy? What are you watching? 1:21:47.570 --> 1:21:50.000 align:left position:10%,start line:85% size:80% >> NARRATOR: There were a series of similar attacks across the 1:21:50.000 --> 1:21:51.930 align:left position:10%,start line:85% size:80% country. >> What's up, homie? 1:21:51.930 --> 1:21:53.930 align:left position:10%,start line:85% size:80% I still see you. >> You hungry? 1:21:53.930 --> 1:21:56.030 align:left position:10%,start line:85% size:80% >> What's going on, my main man Shaq? 1:21:56.030 --> 1:21:57.800 align:left position:10%,start line:85% size:80% >> NARRATOR: And it's not just hackers. 1:21:57.800 --> 1:22:00.900 align:left position:10%,start line:85% size:80% Ring has fired some of its own employees for spying on 1:22:00.900 --> 1:22:03.630 align:left position:10%,start line:85% size:80% customers. >> In George Orwell's 1:22:03.630 --> 1:22:08.800 align:left position:10%,start line:85% size:80% "1984," he describes a dystopia in which, "You had to live, you 1:22:08.800 --> 1:22:12.100 align:left position:10%,start line:85% size:80% did live from habit that became instinct in the assumption that 1:22:12.100 --> 1:22:15.300 align:left position:10%,start line:85% size:80% every sound you made was overheard." 1:22:15.300 --> 1:22:20.570 align:left position:10%,start line:85% size:80% And I wonder if you ever think about how easily this could 1:22:20.570 --> 1:22:23.870 align:left position:10%,start line:85% size:80% become dystopian to some degree? >> Well, I don't want to live in 1:22:23.870 --> 1:22:27.100 align:left position:10%,start line:85% size:80% that world. So, I do not want to invent the 1:22:27.100 --> 1:22:30.300 align:left position:10%,start line:85% size:80% technology that, or have my teams invent the technology that 1:22:30.300 --> 1:22:34.270 align:left position:10%,start line:85% size:80% would create that world. And so... but I am an optimist. 1:22:34.270 --> 1:22:39.030 align:left position:10%,start line:85% size:80% I, I think if you take the, the absolute view of that, we 1:22:39.030 --> 1:22:41.530 align:left position:10%,start line:85% size:80% wouldn't invent anything. >> We're increasingly 1:22:41.530 --> 1:22:46.200 align:left position:10%,start line:85% size:80% living in a world in which your products and your designs are 1:22:46.200 --> 1:22:48.430 align:left position:10%,start line:85% size:80% there. Do, can you see how it could be 1:22:48.430 --> 1:22:51.670 align:left position:10%,start line:85% size:80% concerning in some ways that we all can't opt out of that world 1:22:51.670 --> 1:22:54.670 align:left position:10%,start line:85% size:80% at this point? >> Oh, sure, I can see why it 1:22:54.670 --> 1:22:56.630 align:left position:10%,start line:85% size:80% could be concerning to some customers. 1:22:56.630 --> 1:23:00.870 align:left position:10%,start line:85% size:80% Our job in building that technology is to build it in 1:23:00.870 --> 1:23:03.930 align:left position:10%,start line:85% size:80% such a way that it, that it takes into account for the 1:23:03.930 --> 1:23:07.300 align:left position:10%,start line:85% size:80% scenarios that you just talked about, as best as we possibly 1:23:07.300 --> 1:23:10.570 align:left position:10%,start line:85% size:80% can. You know, the, the reality of it 1:23:10.570 --> 1:23:16.900 align:left position:10%,start line:85% size:80% is, that world happened way before Ring or Alexa. 1:23:16.900 --> 1:23:20.770 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: That's something 1:23:20.770 --> 1:23:24.600 align:left position:10%,start line:85% size:80% that Bezos himself wrestled with 20 years ago. 1:23:24.600 --> 1:23:27.030 align:left position:10%,start line:85% size:80% >> I believe that privacy is going to be one of the prominent 1:23:27.030 --> 1:23:30.000 align:left position:10%,start line:85% size:80% issues of the 21st century. The thing is, there are towns 1:23:30.000 --> 1:23:31.970 align:left position:10%,start line:85% size:80% now in the United States that have installed security cameras 1:23:31.970 --> 1:23:34.530 align:left position:10%,start line:85% size:80% on every corner, and their crime rates decreased by 80%, 1:23:34.530 --> 1:23:37.600 align:left position:10%,start line:85% size:80% but do you really want cameras on every corner? 1:23:37.600 --> 1:23:41.100 align:left position:10%,start line:85% size:80% There are very strange things that are going to happen over 1:23:41.100 --> 1:23:43.530 align:left position:10%,start line:85% size:80% the next 100 years with respect to technology that are going to 1:23:43.530 --> 1:23:46.630 align:left position:10%,start line:85% size:80% challenge us as a society to figure out how we want to deal 1:23:46.630 --> 1:23:49.400 align:left position:10%,start line:85% size:80% with privacy. >> NARRATOR: Decades later, 1:23:49.400 --> 1:23:52.600 align:left position:10%,start line:85% size:80% Bezos would be at the vanguard of expanding the use of that 1:23:52.600 --> 1:23:56.270 align:left position:10%,start line:85% size:80% kind of technology. >> Introducing Amazon 1:23:56.270 --> 1:24:00.300 align:left position:10%,start line:85% size:80% Rekognition Video. >> Rekognition allows you to 1:24:00.300 --> 1:24:03.230 align:left position:10%,start line:85% size:80% pass an image to us. You can say, "Do these two faces 1:24:03.230 --> 1:24:05.070 align:left position:10%,start line:85% size:80% match?" Which is incredibly useful for 1:24:05.070 --> 1:24:09.230 align:left position:10%,start line:85% size:80% applications in the security space. 1:24:09.230 --> 1:24:11.770 align:left position:10%,start line:85% size:80% You can imagine... >> NARRATOR: After Amazon rolled 1:24:11.770 --> 1:24:14.800 align:left position:10%,start line:85% size:80% out a facial recognition tool, it marketed it to law 1:24:14.800 --> 1:24:16.530 align:left position:10%,start line:85% size:80% enforcement. >> Recognize and track persons 1:24:16.530 --> 1:24:22.230 align:left position:10%,start line:85% size:80% of interest from a collection of tens of millions of faces. 1:24:22.230 --> 1:24:24.900 align:left position:10%,start line:85% size:80% >> NARRATOR: Police we've spoken to say it's a valuable tool to 1:24:24.900 --> 1:24:28.400 align:left position:10%,start line:85% size:80% identify suspects quickly. >> ...appears to be a match, but 1:24:28.400 --> 1:24:30.470 align:left position:10%,start line:85% size:80% I'm gonna make sure I look at them all. 1:24:30.470 --> 1:24:32.300 align:left position:10%,start line:85% size:80% >> NARRATOR: And while Amazon has offered guidelines for how 1:24:32.300 --> 1:24:35.230 align:left position:10%,start line:85% size:80% it should be used, there are few laws governing the use of this 1:24:35.230 --> 1:24:37.970 align:left position:10%,start line:85% size:80% technology. >> It returns anybody with 1:24:37.970 --> 1:24:40.900 align:left position:10%,start line:85% size:80% warrants that look like her. >> NARRATOR: Civil liberties 1:24:40.900 --> 1:24:44.130 align:left position:10%,start line:85% size:80% advocates have raised concerns, as have computer scientists, who 1:24:44.130 --> 1:24:48.370 align:left position:10%,start line:85% size:80% worry Amazon has released the software before it's ready, and 1:24:48.370 --> 1:24:52.130 align:left position:10%,start line:85% size:80% that police are essentially field-testing it on the public 1:24:52.130 --> 1:24:57.200 align:left position:10%,start line:85% size:80% on behalf of the company. >> The tools are not what I call 1:24:57.200 --> 1:25:02.070 align:left position:10%,start line:85% size:80% battle-tested. And we still do not understand 1:25:02.070 --> 1:25:04.700 align:left position:10%,start line:85% size:80% how well they work in the environments in which they'll be 1:25:04.700 --> 1:25:09.030 align:left position:10%,start line:85% size:80% applied. That's where I see a danger. 1:25:09.030 --> 1:25:11.830 align:left position:10%,start line:85% size:80% >> NARRATOR: Anima Anandkumar was the principal scientist for 1:25:11.830 --> 1:25:14.470 align:left position:10%,start line:85% size:80% artificial intelligence at Amazon. 1:25:14.470 --> 1:25:17.600 align:left position:10%,start line:85% size:80% In her first interview about her concerns she told us she was 1:25:17.600 --> 1:25:21.030 align:left position:10%,start line:85% size:80% particularly alarmed by an M.I.T. study that found the 1:25:21.030 --> 1:25:25.730 align:left position:10%,start line:85% size:80% software prone to mistakes with darker-skinned faces. 1:25:25.730 --> 1:25:28.600 align:left position:10%,start line:85% size:80% Amazon has questioned the study's methodology. 1:25:29.270 --> 1:25:33.100 align:left position:10%,start line:85% size:80% >> As a researcher in A.I., I feel it's my personal 1:25:33.100 --> 1:25:37.570 align:left position:10%,start line:85% size:80% responsibility to educate the public of where A.I. truly is 1:25:37.570 --> 1:25:41.070 align:left position:10%,start line:85% size:80% today, right? Because they hear so much of 1:25:41.070 --> 1:25:44.470 align:left position:10%,start line:85% size:80% A.I. being hyped up, you know, it's supposed to be magical, 1:25:44.470 --> 1:25:47.370 align:left position:10%,start line:85% size:80% it's supposed to solve all the world's problems. 1:25:47.370 --> 1:25:50.270 align:left position:10%,start line:85% size:80% I see the potential in doing that, but at the same time we 1:25:50.270 --> 1:25:53.570 align:left position:10%,start line:85% size:80% need a reality check. We need to ask, where is A.I. 1:25:53.570 --> 1:25:56.370 align:left position:10%,start line:85% size:80% today? What can it truly do well? 1:25:56.370 --> 1:25:58.370 align:left position:10%,start line:85% size:80% >> And when it comes to facial recognition, you don't 1:25:58.370 --> 1:26:01.030 align:left position:10%,start line:85% size:80% think it's ready for primetime. >> I don't think face 1:26:01.030 --> 1:26:04.370 align:left position:10%,start line:85% size:80% recognition is ready for primetime in challenging 1:26:04.370 --> 1:26:07.400 align:left position:10%,start line:85% size:80% applications like law enforcement. 1:26:07.400 --> 1:26:09.800 align:left position:10%,start line:85% size:80% >> NARRATOR: Anandkumar and other scientists have asked 1:26:09.800 --> 1:26:12.970 align:left position:10%,start line:85% size:80% Amazon to stop selling Rekognition to law enforcement 1:26:12.970 --> 1:26:17.200 align:left position:10%,start line:85% size:80% because they say the system's accuracy is still in question, 1:26:17.200 --> 1:26:21.270 align:left position:10%,start line:85% size:80% and there are no clear regulations about how it's used. 1:26:21.270 --> 1:26:25.300 align:left position:10%,start line:85% size:80% We asked Andy Jassy about it. >> I have a different view, and 1:26:25.300 --> 1:26:29.070 align:left position:10%,start line:85% size:80% we've spent... We've had the facial 1:26:29.070 --> 1:26:33.200 align:left position:10%,start line:85% size:80% recognition technology out for use for over two-and-a-half 1:26:33.200 --> 1:26:35.930 align:left position:10%,start line:85% size:80% years now. And in those two-and-a-half 1:26:35.930 --> 1:26:38.770 align:left position:10%,start line:85% size:80% years, we've never had any reported misuse of law 1:26:38.770 --> 1:26:41.030 align:left position:10%,start line:85% size:80% enforcement using the facial recognition technology and, you 1:26:41.030 --> 1:26:43.670 align:left position:10%,start line:85% size:80% know, I think a lot of societal good is already being done with 1:26:43.670 --> 1:26:46.070 align:left position:10%,start line:85% size:80% facial recognition technology. Already, you've seen hundreds of 1:26:46.070 --> 1:26:49.100 align:left position:10%,start line:85% size:80% missing kids reunited with their parents, and hundreds of human 1:26:49.100 --> 1:26:53.630 align:left position:10%,start line:85% size:80% trafficking victims saved, and all kinds of security and 1:26:53.630 --> 1:26:56.430 align:left position:10%,start line:85% size:80% identity and education uses, so there's a lot of good that's 1:26:56.430 --> 1:26:59.200 align:left position:10%,start line:85% size:80% been done with it. But I also understand that it 1:26:59.200 --> 1:27:01.630 align:left position:10%,start line:85% size:80% could be misused. And I think at the end of the 1:27:01.630 --> 1:27:03.930 align:left position:10%,start line:85% size:80% day with any technology, whether you're talking about facial 1:27:03.930 --> 1:27:06.530 align:left position:10%,start line:85% size:80% recognition technology or anything else, the people that 1:27:06.530 --> 1:27:09.670 align:left position:10%,start line:85% size:80% use the technology have to be responsible for it, and if they 1:27:09.670 --> 1:27:12.870 align:left position:10%,start line:85% size:80% use it irresponsibly, they have to be held accountable. 1:27:12.870 --> 1:27:14.630 align:left position:10%,start line:85% size:80% >> There's been all sorts of problems with policing 1:27:14.630 --> 1:27:17.170 align:left position:10%,start line:85% size:80% in this country. So why allow police departments 1:27:17.170 --> 1:27:20.070 align:left position:10%,start line:85% size:80% to experiment? >> We believe that governments 1:27:20.070 --> 1:27:22.900 align:left position:10%,start line:85% size:80% and the organizations that are charged with keeping our 1:27:22.900 --> 1:27:25.770 align:left position:10%,start line:85% size:80% communities safe have to have access to the most 1:27:25.770 --> 1:27:28.070 align:left position:10%,start line:85% size:80% sophisticated, modern technology that exists. 1:27:28.070 --> 1:27:30.470 align:left position:10%,start line:85% size:80% We don't have a large number of police departments that are 1:27:30.470 --> 1:27:33.400 align:left position:10%,start line:85% size:80% using our facial recognition technology, and as I said, 1:27:33.400 --> 1:27:36.130 align:left position:10%,start line:85% size:80% we've never received any complaints of misuse. 1:27:36.130 --> 1:27:38.900 align:left position:10%,start line:85% size:80% Let's see if somehow they abuse the technology. 1:27:38.900 --> 1:27:41.930 align:left position:10%,start line:85% size:80% They haven't done that, and to assume that they're gonna do it 1:27:41.930 --> 1:27:44.470 align:left position:10%,start line:85% size:80% and therefore you shouldn't allow them to have access to the 1:27:44.470 --> 1:27:46.670 align:left position:10%,start line:85% size:80% most sophisticated technology out there, doesn't feel like the 1:27:46.670 --> 1:27:49.100 align:left position:10%,start line:85% size:80% right balance to me. >> It's been difficult 1:27:49.100 --> 1:27:51.900 align:left position:10%,start line:85% size:80% to even know how many police departments are using the facial 1:27:51.900 --> 1:27:55.030 align:left position:10%,start line:85% size:80% recognition technology, and there's no public auditing to 1:27:55.030 --> 1:27:58.170 align:left position:10%,start line:85% size:80% know whether there are complaints about abuse. 1:27:58.700 --> 1:28:01.430 align:left position:10%,start line:85% size:80% How would the public ever know? >> You know, again, I don't 1:28:01.430 --> 1:28:06.500 align:left position:10%,start line:85% size:80% think we know the total number of police departments that are 1:28:06.500 --> 1:28:08.470 align:left position:10%,start line:85% size:80% using facial recognition technology. 1:28:08.800 --> 1:28:13.230 align:left position:10%,start line:85% size:80% I mean, there's, you can use any number-- we have 165 services in 1:28:13.230 --> 1:28:16.570 align:left position:10%,start line:85% size:80% our technology infrastructure platform, and you can use them 1:28:16.570 --> 1:28:19.470 align:left position:10%,start line:85% size:80% in whatever conjunction, any combination that you want. 1:28:19.470 --> 1:28:23.870 align:left position:10%,start line:85% size:80% We know of some, and the vast majority of those that are using 1:28:23.870 --> 1:28:26.900 align:left position:10%,start line:85% size:80% it are using it according to the guidance that we've prescribed. 1:28:27.170 --> 1:28:29.300 align:left position:10%,start line:85% size:80% And when they're not, we have conversations, and if we find 1:28:29.300 --> 1:28:32.430 align:left position:10%,start line:85% size:80% that they're using it in some irresponsible way, we won't 1:28:32.430 --> 1:28:35.730 align:left position:10%,start line:85% size:80% allow them to use the service and the platform. 1:28:35.730 --> 1:28:38.030 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: Andy Jassy and Jeff 1:28:38.030 --> 1:28:40.770 align:left position:10%,start line:85% size:80% Bezos have said they want governments to hurry up and 1:28:40.770 --> 1:28:45.000 align:left position:10%,start line:85% size:80% regulate how law enforcement can use facial recognition. 1:28:45.200 --> 1:28:48.700 align:left position:10%,start line:85% size:80% But in the meantime, Amazon has forged ahead, and has even 1:28:48.700 --> 1:28:51.730 align:left position:10%,start line:85% size:80% discussed its services with Immigration and Customs 1:28:51.730 --> 1:28:55.000 align:left position:10%,start line:85% size:80% Enforcement. >> At Amazon Web Services... 1:28:55.000 --> 1:28:56.730 align:left position:10%,start line:85% size:80% >> NARRATOR: And the U.S. military. 1:28:56.730 --> 1:28:59.830 align:left position:10%,start line:85% size:80% >> ...partner community to deliver for our warfighters and 1:28:59.830 --> 1:29:03.470 align:left position:10%,start line:85% size:80% defense leaders for when it matters most. 1:29:03.470 --> 1:29:06.330 align:left position:10%,start line:85% size:80% >> NARRATOR: Bezos himself has made it clear that he sees 1:29:06.330 --> 1:29:10.170 align:left position:10%,start line:85% size:80% Amazon playing a critical role in national security, as well as 1:29:10.170 --> 1:29:12.730 align:left position:10%,start line:85% size:80% in commerce. >> We are going to continue to 1:29:12.730 --> 1:29:16.030 align:left position:10%,start line:85% size:80% support the D.O.D., and I think we should. 1:29:16.030 --> 1:29:18.930 align:left position:10%,start line:85% size:80% And if big tech companies are gonna turn their back on the 1:29:18.930 --> 1:29:23.230 align:left position:10%,start line:85% size:80% U.S. Department of Defense, this country is gonna be in trouble. 1:29:23.230 --> 1:29:26.530 align:left position:10%,start line:85% size:80% >> NARRATOR: As Amazon has revolutionized one industry 1:29:26.530 --> 1:29:30.770 align:left position:10%,start line:85% size:80% after another, Jeff Bezos's reputation has grown to mythic 1:29:30.770 --> 1:29:34.000 align:left position:10%,start line:85% size:80% proportions. >> You've called what Jeff Bezos 1:29:34.000 --> 1:29:36.430 align:left position:10%,start line:85% size:80% has built a miracle. >> Absolute miracle. 1:29:36.430 --> 1:29:38.970 align:left position:10%,start line:85% size:80% I wish I could give him a blood test or something so I could 1:29:38.970 --> 1:29:40.930 align:left position:10%,start line:85% size:80% pick it out, but... >> You want to clone him? 1:29:40.930 --> 1:29:43.370 align:left position:10%,start line:85% size:80% >> No, I want a transfusion, actually. 1:29:43.370 --> 1:29:47.700 align:left position:10%,start line:85% size:80% >> Amazon is now worth $1 trillion... 1:29:47.700 --> 1:29:50.430 align:left position:10%,start line:85% size:80% >> NARRATOR: His every move moves the markets. 1:29:50.430 --> 1:29:53.000 align:left position:10%,start line:85% size:80% >> Amazon Advertising is just on fire. 1:29:53.000 --> 1:29:55.730 align:left position:10%,start line:85% size:80% >> NARRATOR: Starting a digital advertising business to rival 1:29:55.730 --> 1:29:58.700 align:left position:10%,start line:85% size:80% Facebook and Google. >> Some breaking news on Whole 1:29:58.700 --> 1:30:00.700 align:left position:10%,start line:85% size:80% Foods... >> Holy cow. 1:30:00.700 --> 1:30:02.600 align:left position:10%,start line:85% size:80% >> Jim, I heard you gasp just now. 1:30:02.600 --> 1:30:04.500 align:left position:10%,start line:85% size:80% >> Holy cow, this is such a game-changer. 1:30:04.500 --> 1:30:07.000 align:left position:10%,start line:85% size:80% >> NARRATOR: Buying the grocery chain Whole Foods. 1:30:07.000 --> 1:30:09.400 align:left position:10%,start line:85% size:80% >> In a record-breaking deal, Amazon is buying Whole Foods for 1:30:09.400 --> 1:30:13.200 align:left position:10%,start line:85% size:80% $13.7 billion. >> The day the acquisition was 1:30:13.200 --> 1:30:15.570 align:left position:10%,start line:85% size:80% announced, the nation's largest grocery company lost billions of 1:30:15.570 --> 1:30:21.430 align:left position:10%,start line:85% size:80% dollars because Amazon acquired a company one-12th the size. 1:30:21.430 --> 1:30:23.400 align:left position:10%,start line:85% size:80% >> Everybody thinks Bezos is the smartest person in the world and 1:30:23.400 --> 1:30:26.030 align:left position:10%,start line:85% size:80% he's gonna come and crush me. >> When Amazon announced the 1:30:26.030 --> 1:30:29.000 align:left position:10%,start line:85% size:80% acquisition of Pill Pack... >> News of the deal sent 1:30:29.000 --> 1:30:30.630 align:left position:10%,start line:85% size:80% shockwaves through an industry... 1:30:30.630 --> 1:30:34.030 align:left position:10%,start line:85% size:80% >> The retail pharmacy sector shed billions of dollars. 1:30:34.030 --> 1:30:37.400 align:left position:10%,start line:85% size:80% >> Look at this story-- three titans of industry... 1:30:37.400 --> 1:30:39.470 align:left position:10%,start line:85% size:80% >> When Amazon was mentioned in a press release with Berkshire 1:30:39.470 --> 1:30:42.030 align:left position:10%,start line:85% size:80% Hathaway and JP Morgan saying they were looking at healthcare 1:30:42.030 --> 1:30:44.800 align:left position:10%,start line:85% size:80% costs-- no detail in what that meant... 1:30:44.800 --> 1:30:46.570 align:left position:10%,start line:85% size:80% >> Healthcare companies are panicked about Amazon's 1:30:46.570 --> 1:30:48.530 align:left position:10%,start line:85% size:80% forthcoming entry into the healthcare market. 1:30:48.530 --> 1:30:50.970 align:left position:10%,start line:85% size:80% >> On the opening bell the next morning, the healthcare 1:30:50.970 --> 1:30:53.470 align:left position:10%,start line:85% size:80% industry's largest players shed billions of dollars. 1:30:53.470 --> 1:30:55.830 align:left position:10%,start line:85% size:80% >> And insurance stocks are down after Amazon announced a 1:30:55.830 --> 1:30:58.400 align:left position:10%,start line:85% size:80% healthcare partnership with Berkshire Hathaway and JP Morgan 1:30:58.400 --> 1:31:00.930 align:left position:10%,start line:85% size:80% Chase. >> Bezos basically wants to own 1:31:00.930 --> 1:31:04.370 align:left position:10%,start line:85% size:80% the whole economy, right? >> You think he will. 1:31:04.370 --> 1:31:06.730 align:left position:10%,start line:85% size:80% >> I kind of think he will. I kinda think that in, like, ten 1:31:06.730 --> 1:31:08.830 align:left position:10%,start line:85% size:80% years Jeff Bezos owns every single thing there is. 1:31:09.470 --> 1:31:11.700 align:left position:10%,start line:85% size:80% >> So Amazon has these Darth Vader-like abilities to just 1:31:11.700 --> 1:31:15.470 align:left position:10%,start line:85% size:80% look at a sector and begin choking it of oxygen without 1:31:15.470 --> 1:31:17.500 align:left position:10%,start line:85% size:80% even touching it. Amazon can begin beating 1:31:17.500 --> 1:31:19.870 align:left position:10%,start line:85% size:80% competitors without even competing. 1:31:19.870 --> 1:31:22.500 align:left position:10%,start line:85% size:80% >> You actually think that Amazon is having a negative 1:31:22.500 --> 1:31:26.730 align:left position:10%,start line:85% size:80% effect on competition in the innovation economy right now? 1:31:26.730 --> 1:31:29.000 align:left position:10%,start line:85% size:80% >> I think it's a mixed bag, I think that you could argue, and 1:31:29.000 --> 1:31:31.200 align:left position:10%,start line:85% size:80% there's evidence that they have inspired innovation in certain 1:31:31.200 --> 1:31:33.070 align:left position:10%,start line:85% size:80% sectors. But I think there's a lot of 1:31:33.070 --> 1:31:35.070 align:left position:10%,start line:85% size:80% small companies that aren't being formed, because if you go 1:31:35.070 --> 1:31:38.100 align:left position:10%,start line:85% size:80% in to try and raise money for an e-commerce company, it's, 1:31:38.100 --> 1:31:40.730 align:left position:10%,start line:85% size:80% "Well, how are we going to compete against Amazon?" 1:31:40.730 --> 1:31:43.230 align:left position:10%,start line:85% size:80% And I say, "Well, the answer can be summarized in one word: 1:31:43.230 --> 1:31:45.330 align:left position:10%,start line:85% size:80% impossible." >> All right, let's move some 1:31:45.330 --> 1:31:49.500 align:left position:10%,start line:85% size:80% earth. >> Every single area that he 1:31:49.500 --> 1:31:54.630 align:left position:10%,start line:85% size:80% enters into, he manages to succeed in a fairly major way. 1:31:54.630 --> 1:31:57.830 align:left position:10%,start line:85% size:80% (crowd cheering) >> We've had another great Prime 1:31:57.830 --> 1:32:00.400 align:left position:10%,start line:85% size:80% Day. >> We've never seen anything 1:32:00.400 --> 1:32:04.900 align:left position:10%,start line:85% size:80% like a company that is so integrated into the fabric of 1:32:04.900 --> 1:32:08.830 align:left position:10%,start line:85% size:80% existence, so, you know, at a certain point, it becomes 1:32:08.830 --> 1:32:11.530 align:left position:10%,start line:85% size:80% unavoidable. >> Amazon just yesterday said... 1:32:11.530 --> 1:32:14.470 align:left position:10%,start line:85% size:80% >> Bezos would even extend his reach into the heart of popular 1:32:14.470 --> 1:32:18.130 align:left position:10%,start line:85% size:80% culture. >> Can you imagine Macy's 1:32:18.130 --> 1:32:21.000 align:left position:10%,start line:85% size:80% starting a media company? We couldn't even imagine that. 1:32:21.000 --> 1:32:23.400 align:left position:10%,start line:85% size:80% But Amazon does it, and people take it seriously. 1:32:23.400 --> 1:32:26.800 align:left position:10%,start line:85% size:80% (explosion echoes) (people screaming) 1:32:26.800 --> 1:32:29.000 align:left position:10%,start line:85% size:80% >> NARRATOR: Amazon is investing billions in new shows and 1:32:29.000 --> 1:32:32.130 align:left position:10%,start line:85% size:80% movies. >> Oh. 1:32:32.130 --> 1:32:34.570 align:left position:10%,start line:85% size:80% Hi. >> Hey. 1:32:34.570 --> 1:32:36.770 align:left position:10%,start line:85% size:80% >> NARRATOR: And on beefing up its streaming service, which 1:32:36.770 --> 1:32:39.700 align:left position:10%,start line:85% size:80% streams around four times as many movies as Netflix, Major 1:32:39.700 --> 1:32:41.900 align:left position:10%,start line:85% size:80% >> NARRATOR: And on beefing up its streaming service, which 1:32:41.900 --> 1:32:45.370 align:left position:10%,start line:85% size:80% streams four times as many movies as Netflix, Major 1:32:45.370 --> 1:32:49.900 align:left position:10%,start line:85% size:80% League Baseball, and PBS shows like this one. 1:32:49.900 --> 1:32:53.730 align:left position:10%,start line:85% size:80% (audience applauding) >> And the Golden Globe goes 1:32:53.730 --> 1:32:56.970 align:left position:10%,start line:85% size:80% to... "Transparent." 1:32:56.970 --> 1:32:59.670 align:left position:10%,start line:85% size:80% Amazon Instant Video. >> I want to thank Amazon, Jeff 1:32:59.670 --> 1:33:02.930 align:left position:10%,start line:85% size:80% Bezos. >> To Amazon, my new best... 1:33:02.930 --> 1:33:05.330 align:left position:10%,start line:85% size:80% friend. (audience laughing) 1:33:05.330 --> 1:33:09.370 align:left position:10%,start line:85% size:80% >> Bezos likes to joke about how, every time he wins a Golden 1:33:09.370 --> 1:33:11.570 align:left position:10%,start line:85% size:80% Globe... >> ...it helps us sell more 1:33:11.570 --> 1:33:13.900 align:left position:10%,start line:85% size:80% shoes. And it does that in a very 1:33:13.900 --> 1:33:17.470 align:left position:10%,start line:85% size:80% direct way, because when people... if you look at Prime 1:33:17.470 --> 1:33:22.070 align:left position:10%,start line:85% size:80% members, they, they buy more on Amazon than non-Prime members, 1:33:22.070 --> 1:33:24.200 align:left position:10%,start line:85% size:80% and one of the reasons they do that is, once they've paid their 1:33:24.200 --> 1:33:27.070 align:left position:10%,start line:85% size:80% annual fee, they're looking around to see, "How can I get 1:33:27.070 --> 1:33:29.930 align:left position:10%,start line:85% size:80% more value out of the program?" >> They're trying to use this 1:33:29.930 --> 1:33:33.600 align:left position:10%,start line:85% size:80% entertainment to get people into the pipeline. 1:33:33.600 --> 1:33:36.230 align:left position:10%,start line:85% size:80% >> Alexa, play "Jack Ryan" on Fire TV. 1:33:36.230 --> 1:33:41.600 align:left position:10%,start line:85% size:80% >> To keep them sitting within this structure that is Amazon, 1:33:41.600 --> 1:33:45.970 align:left position:10%,start line:85% size:80% where it becomes this unthinking habit that's starting to pattern 1:33:45.970 --> 1:33:48.100 align:left position:10%,start line:85% size:80% all these parts of our existence. 1:33:48.100 --> 1:33:54.000 align:left position:10%,start line:85% size:80% >> So you're doing the media stuff to encourage people to use 1:33:54.000 --> 1:33:56.530 align:left position:10%,start line:85% size:80% more of Prime. >> Correct. 1:33:56.530 --> 1:33:59.570 align:left position:10%,start line:85% size:80% >> Amazon is represented at the Academy Awards. 1:33:59.570 --> 1:34:02.670 align:left position:10%,start line:85% size:80% Amazon is the first streaming service nominated for Best 1:34:02.670 --> 1:34:05.600 align:left position:10%,start line:85% size:80% Picture. >> He's like one of the old 1:34:05.600 --> 1:34:09.900 align:left position:10%,start line:85% size:80% studio bosses right now. He really enjoys having this 1:34:09.900 --> 1:34:16.430 align:left position:10%,start line:85% size:80% place in the industry and really seems to relish being at 1:34:16.430 --> 1:34:21.400 align:left position:10%,start line:85% size:80% the center of attention there. >> I also want you to know, 1:34:21.400 --> 1:34:24.300 align:left position:10%,start line:85% size:80% Jeff, if you win tonight, you can expect your Oscar to arrive 1:34:24.300 --> 1:34:27.470 align:left position:10%,start line:85% size:80% in two to five business days... (audience laughing) 1:34:27.470 --> 1:34:33.300 align:left position:10%,start line:85% size:80% >> What you see now is someone who is so supremely self- 1:34:33.300 --> 1:34:39.970 align:left position:10%,start line:85% size:80% confident. A guy who has become a titan. 1:34:39.970 --> 1:34:45.200 align:left position:10%,start line:85% size:80% ♪ ♪ >> Amazon is about to get 1:34:45.200 --> 1:34:47.500 align:left position:10%,start line:85% size:80% bigger. It's looking for another home in 1:34:47.500 --> 1:34:50.100 align:left position:10%,start line:85% size:80% North America. >> NARRATOR: Bezos and Amazon's 1:34:50.100 --> 1:34:54.730 align:left position:10%,start line:85% size:80% soaring stature would be on full display in September 2017, when 1:34:54.730 --> 1:34:58.570 align:left position:10%,start line:85% size:80% the company announced a contest to find a location for a second 1:34:58.570 --> 1:35:01.570 align:left position:10%,start line:85% size:80% headquarters. >> ...called HQ2. 1:35:01.570 --> 1:35:04.970 align:left position:10%,start line:85% size:80% >> NARRATOR: They promised $5 billion in capital investments. 1:35:04.970 --> 1:35:07.770 align:left position:10%,start line:85% size:80% >> $5 billion... >> ...in local investment... 1:35:07.770 --> 1:35:10.570 align:left position:10%,start line:85% size:80% >> NARRATOR: And 50,000 jobs. >> 50,000... 1:35:10.570 --> 1:35:13.230 align:left position:10%,start line:85% size:80% >> 50,000 people. >> 50,000 high-paying jobs. 1:35:13.230 --> 1:35:15.730 align:left position:10%,start line:85% size:80% >> Cities are salivating over the opportunity. 1:35:15.730 --> 1:35:18.730 align:left position:10%,start line:85% size:80% >> It was unprecedented because the number of jobs was head-and- 1:35:18.730 --> 1:35:21.830 align:left position:10%,start line:85% size:80% shoulders more than had ever been offered in a deal before. 1:35:22.600 --> 1:35:26.230 align:left position:10%,start line:85% size:80% This was a super-high-profile auction by the most popular 1:35:26.230 --> 1:35:29.230 align:left position:10%,start line:85% size:80% consumer company in the, in the country. 1:35:30.100 --> 1:35:32.130 align:left position:10%,start line:85% size:80% >> NARRATOR: The company invited cities across North America to 1:35:32.130 --> 1:35:35.930 align:left position:10%,start line:85% size:80% pitch themselves. >> How about, I don't know, 1:35:35.930 --> 1:35:39.730 align:left position:10%,start line:85% size:80% here? >> NARRATOR: 238 took them up on 1:35:39.730 --> 1:35:41.630 align:left position:10%,start line:85% size:80% it. >> I chose, Miami-- you should, 1:35:41.630 --> 1:35:43.530 align:left position:10%,start line:85% size:80% too. >> Can't wait to see you, 1:35:43.530 --> 1:35:46.270 align:left position:10%,start line:85% size:80% Amazon. >> I, Ebenezer Scrooge... 1:35:46.270 --> 1:35:48.800 align:left position:10%,start line:85% size:80% >> NARRATOR: Some with elaborately produced videos. 1:35:48.800 --> 1:35:52.400 align:left position:10%,start line:85% size:80% >> ...I live in Atlanta. >> Amazon is demonstrating that 1:35:52.400 --> 1:35:54.970 align:left position:10%,start line:85% size:80% it has the power to get thousands of elected officials 1:35:54.970 --> 1:35:59.930 align:left position:10%,start line:85% size:80% to remake their workday and bow down before Amazon. 1:36:00.530 --> 1:36:03.030 align:left position:10%,start line:85% size:80% >> I'm Mark Bound, mayor of the city of Danbury. 1:36:03.030 --> 1:36:07.330 align:left position:10%,start line:85% size:80% >> And offer it huge tax breaks. >> Georgia offered $2 billion. 1:36:07.330 --> 1:36:12.400 align:left position:10%,start line:85% size:80% >> Maryland offered $5 billion. >> $7 billion from New Jersey. 1:36:12.400 --> 1:36:15.830 align:left position:10%,start line:85% size:80% >> Huge infrastructure promises, huge prime parcels of land. 1:36:15.830 --> 1:36:19.270 align:left position:10%,start line:85% size:80% >> Philadelphia is offering the most land-- 28 million square 1:36:19.270 --> 1:36:21.170 align:left position:10%,start line:85% size:80% feet. >> They know that these places 1:36:21.170 --> 1:36:26.130 align:left position:10%,start line:85% size:80% all don't have a prayer. >> So to those who saw 1:36:26.130 --> 1:36:29.200 align:left position:10%,start line:85% size:80% it as a kind of grotesque display of corporate power, to 1:36:29.200 --> 1:36:33.470 align:left position:10%,start line:85% size:80% dangle 50,000 jobs and potential billions of dollars of revenue 1:36:33.470 --> 1:36:36.630 align:left position:10%,start line:85% size:80% over metropolitan cities around the country, you say what? 1:36:37.330 --> 1:36:42.100 align:left position:10%,start line:85% size:80% >> Look, I, I think, I used to work for the United States 1:36:42.100 --> 1:36:44.500 align:left position:10%,start line:85% size:80% government, like, we want businesses to invest in the 1:36:44.500 --> 1:36:46.870 align:left position:10%,start line:85% size:80% United States. States want businesses to invest 1:36:46.870 --> 1:36:49.370 align:left position:10%,start line:85% size:80% in states, cities, city officials want businesses to 1:36:49.370 --> 1:36:52.270 align:left position:10%,start line:85% size:80% invest in cities. The proposals we got, the cities 1:36:52.270 --> 1:36:55.470 align:left position:10%,start line:85% size:80% made the proposals, they wanted us to come, and they presented 1:36:55.470 --> 1:36:58.000 align:left position:10%,start line:85% size:80% to us why they were an attractive option. 1:36:58.000 --> 1:37:02.030 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: In November 2018, 1:37:02.030 --> 1:37:07.070 align:left position:10%,start line:85% size:80% Amazon announced there were two winners: Arlington, Virginia, 1:37:07.070 --> 1:37:10.130 align:left position:10%,start line:85% size:80% and New York City. ♪ ♪ 1:37:10.500 --> 1:37:13.230 align:left position:10%,start line:85% size:80% >> This is by far the biggest new jobs deal in the history of 1:37:13.230 --> 1:37:15.270 align:left position:10%,start line:85% size:80% New York City, the history of New York State. 1:37:15.270 --> 1:37:17.500 align:left position:10%,start line:85% size:80% >> NARRATOR: New York City and State had campaigned hard for 1:37:17.500 --> 1:37:21.330 align:left position:10%,start line:85% size:80% it, offering up nearly $3 billion in subsidies and 1:37:21.330 --> 1:37:24.370 align:left position:10%,start line:85% size:80% tax breaks. >> I'll change my name to 1:37:24.370 --> 1:37:28.530 align:left position:10%,start line:85% size:80% "Amazon Cuomo" if that's what it takes. 1:37:28.530 --> 1:37:32.030 align:left position:10%,start line:85% size:80% >> NARRATOR: In return, Amazon promised 25,000 jobs, billions 1:37:32.030 --> 1:37:35.930 align:left position:10%,start line:85% size:80% of dollars in capital investments, and a small number 1:37:35.930 --> 1:37:39.930 align:left position:10%,start line:85% size:80% of projects earmarked for local community members. 1:37:41.400 --> 1:37:43.900 align:left position:10%,start line:85% size:80% >> I thought it could be a great thing for New York. 1:37:43.900 --> 1:37:48.030 align:left position:10%,start line:85% size:80% We are more and more of a tech center, we wanted to consolidate 1:37:48.030 --> 1:37:51.100 align:left position:10%,start line:85% size:80% that reality. Having Amazon here would have 1:37:51.100 --> 1:37:56.000 align:left position:10%,start line:85% size:80% helped immensely. >> Amazon has got to go! 1:37:56.000 --> 1:37:58.030 align:left position:10%,start line:85% size:80% >> NARRATOR: But not everyone was enthused about giving 1:37:58.030 --> 1:38:01.700 align:left position:10%,start line:85% size:80% billions in tax breaks to a trillion-dollar corporation. 1:38:01.700 --> 1:38:04.100 align:left position:10%,start line:85% size:80% >> Corporate handout! >> Get out! 1:38:04.100 --> 1:38:07.570 align:left position:10%,start line:85% size:80% >> Alexandria Ocasio-Cortez says the tax break isn't worth it. 1:38:08.470 --> 1:38:11.470 align:left position:10%,start line:85% size:80% (gavel pounding) >> Welcome to today's oversight 1:38:11.470 --> 1:38:14.130 align:left position:10%,start line:85% size:80% hearing on the deal... >> NARRATOR: Though the deal had 1:38:14.130 --> 1:38:17.100 align:left position:10%,start line:85% size:80% already been finalized, the New York City Council insisted on a 1:38:17.100 --> 1:38:21.070 align:left position:10%,start line:85% size:80% public hearing. It quickly turned contentious. 1:38:21.070 --> 1:38:24.530 align:left position:10%,start line:85% size:80% >> Mr. Husman, you mentioned that there are 5,000 employees 1:38:24.530 --> 1:38:27.400 align:left position:10%,start line:85% size:80% that are currently working here in New York City for Amazon, is 1:38:27.400 --> 1:38:29.400 align:left position:10%,start line:85% size:80% that correct? >> Yes. 1:38:29.400 --> 1:38:31.470 align:left position:10%,start line:85% size:80% >> NARRATOR: Council members grilled Amazon executives on 1:38:31.470 --> 1:38:34.630 align:left position:10%,start line:85% size:80% their position on unions, and whether the company would 1:38:34.630 --> 1:38:37.830 align:left position:10%,start line:85% size:80% pledge to remain neutral if workers in New York State tried 1:38:37.830 --> 1:38:40.670 align:left position:10%,start line:85% size:80% to unionize. >> How many of those employees 1:38:40.670 --> 1:38:42.500 align:left position:10%,start line:85% size:80% are unionized? >> None, sir. 1:38:42.500 --> 1:38:44.270 align:left position:10%,start line:85% size:80% >> None. Would you be okay with agreeing 1:38:44.270 --> 1:38:47.100 align:left position:10%,start line:85% size:80% to neutrality so that workers can unionize? 1:38:47.100 --> 1:38:49.600 align:left position:10%,start line:85% size:80% >> No, sir, we respect... >> You wouldn't agree to that. 1:38:49.600 --> 1:38:52.130 align:left position:10%,start line:85% size:80% >> Correct, sir, we would not. >> To go to a city council 1:38:52.130 --> 1:38:55.170 align:left position:10%,start line:85% size:80% hearing, as Amazon did, and antagonize the city council-- if 1:38:55.170 --> 1:38:57.130 align:left position:10%,start line:85% size:80% they wanted to start a fight, they did a great job. 1:38:57.130 --> 1:38:59.470 align:left position:10%,start line:85% size:80% If they wanted to actually show that they were willing to work 1:38:59.470 --> 1:39:02.330 align:left position:10%,start line:85% size:80% with this community and our values, they did a horrible job. 1:39:02.330 --> 1:39:05.200 align:left position:10%,start line:85% size:80% >> You are in a union city. And one of the first answers to 1:39:05.200 --> 1:39:09.270 align:left position:10%,start line:85% size:80% your question today, is-- would you be neutral?-- you said no. 1:39:09.270 --> 1:39:13.270 align:left position:10%,start line:85% size:80% That is not a way to come to our city. 1:39:13.270 --> 1:39:15.570 align:left position:10%,start line:85% size:80% >> NARRATOR: It was not the reaction the company expected 1:39:15.570 --> 1:39:21.300 align:left position:10%,start line:85% size:80% when it launched the contest. Two weeks later, Amazon pulled 1:39:21.300 --> 1:39:24.170 align:left position:10%,start line:85% size:80% out. >> Amazon is pulling the plug on 1:39:24.170 --> 1:39:27.630 align:left position:10%,start line:85% size:80% its New York plans. >> We decided we didn't have to 1:39:27.630 --> 1:39:29.630 align:left position:10%,start line:85% size:80% be there in that political dynamic. 1:39:29.630 --> 1:39:32.030 align:left position:10%,start line:85% size:80% The fact of the matter is, when it turned out the governor and 1:39:32.030 --> 1:39:34.800 align:left position:10%,start line:85% size:80% the mayor supporting something turned out not to be enough to 1:39:34.800 --> 1:39:41.500 align:left position:10%,start line:85% size:80% persuade other critics that it was the right kind of investment 1:39:41.500 --> 1:39:44.330 align:left position:10%,start line:85% size:80% for New York to make, we decided, that's fine, we can go 1:39:44.330 --> 1:39:46.900 align:left position:10%,start line:85% size:80% elsewhere. >> He said to us that it 1:39:46.900 --> 1:39:49.930 align:left position:10%,start line:85% size:80% turned out that the governor and the mayor supporting something 1:39:49.930 --> 1:39:53.200 align:left position:10%,start line:85% size:80% wasn't enough to persuade other critics that it was the right 1:39:53.200 --> 1:39:55.530 align:left position:10%,start line:85% size:80% kind of investment for New York to make. 1:39:55.530 --> 1:39:58.770 align:left position:10%,start line:85% size:80% So we decided... we decided it's fine, we'll go elsewhere. 1:39:58.770 --> 1:40:00.930 align:left position:10%,start line:85% size:80% >> That's an idiotic statement on its face. 1:40:00.930 --> 1:40:04.500 align:left position:10%,start line:85% size:80% That is pure idiocy from a guy who should know a hell of a lot 1:40:04.500 --> 1:40:07.400 align:left position:10%,start line:85% size:80% better. The deal was done, Amazon knew 1:40:07.400 --> 1:40:10.830 align:left position:10%,start line:85% size:80% it was done. There was noise, there was 1:40:10.830 --> 1:40:13.600 align:left position:10%,start line:85% size:80% posturing by people in the political world, but the deal 1:40:13.600 --> 1:40:16.970 align:left position:10%,start line:85% size:80% was done, so all we're talking about here is the background 1:40:16.970 --> 1:40:20.430 align:left position:10%,start line:85% size:80% noise. In what world are there no 1:40:20.430 --> 1:40:22.500 align:left position:10%,start line:85% size:80% critics? Well, yeah, in an autocratic 1:40:22.500 --> 1:40:24.800 align:left position:10%,start line:85% size:80% totalitarian world, maybe they're not allowed, and maybe 1:40:24.800 --> 1:40:27.570 align:left position:10%,start line:85% size:80% that's the world that Jeff Bezos somewhere in his mind thinks he 1:40:27.570 --> 1:40:34.700 align:left position:10%,start line:85% size:80% is entitled to. ♪ ♪ 1:40:34.700 --> 1:40:37.200 align:left position:10%,start line:85% size:80% >> NARRATOR: At the time, Bezos was involved in some personal 1:40:37.200 --> 1:40:40.500 align:left position:10%,start line:85% size:80% turmoil. >> Amazon C.E.O. Jeff Bezos 1:40:40.500 --> 1:40:46.130 align:left position:10%,start line:85% size:80% and his wife of 25 years announcing they are splitting. 1:40:46.130 --> 1:40:48.370 align:left position:10%,start line:85% size:80% >> The announcement coming amid tabloid reports that Bezos is 1:40:48.370 --> 1:40:51.030 align:left position:10%,start line:85% size:80% now in a relationship with former news anchor Lauren 1:40:51.030 --> 1:40:53.570 align:left position:10%,start line:85% size:80% Sanchez. >> NARRATOR: The "National 1:40:53.570 --> 1:40:55.470 align:left position:10%,start line:85% size:80% Enquirer" had been pursuing him for months. 1:40:55.470 --> 1:40:58.130 align:left position:10%,start line:85% size:80% >> The tabloid claims it tracked him across five states and over 1:40:58.130 --> 1:41:00.770 align:left position:10%,start line:85% size:80% 40,000 miles. >> NARRATOR: Bezos saw the 1:41:00.770 --> 1:41:02.900 align:left position:10%,start line:85% size:80% "Enquirer's" report as politically motivated. 1:41:03.530 --> 1:41:05.530 align:left position:10%,start line:85% size:80% >> So what would be the motive here of getting that 1:41:05.530 --> 1:41:07.930 align:left position:10%,start line:85% size:80% embarrassing material about Bezos and his alleged affair to 1:41:07.930 --> 1:41:10.630 align:left position:10%,start line:85% size:80% the "National Enquirer"? Who would want to get the dirt 1:41:10.630 --> 1:41:12.330 align:left position:10%,start line:85% size:80% in the press? >> NARRATOR: The magazine's 1:41:12.330 --> 1:41:15.800 align:left position:10%,start line:85% size:80% owner, David Pecker, was linked to two powerful men who disliked 1:41:15.800 --> 1:41:20.330 align:left position:10%,start line:85% size:80% how they were covered by Bezos's "Washington Post." 1:41:20.330 --> 1:41:23.900 align:left position:10%,start line:85% size:80% The first was President Trump. >> It's put there for the 1:41:23.900 --> 1:41:27.230 align:left position:10%,start line:85% size:80% benefit of "The Washington Post," of Amazon... 1:41:27.230 --> 1:41:30.200 align:left position:10%,start line:85% size:80% >> NARRATOR: The second: Saudi Crown Prince Mohammad bin 1:41:30.200 --> 1:41:33.870 align:left position:10%,start line:85% size:80% Salman, who the C.I.A. had tied to the murder of one of the 1:41:33.870 --> 1:41:37.400 align:left position:10%,start line:85% size:80% "Post's" journalists, Jamal Khashoggi. 1:41:37.400 --> 1:41:40.370 align:left position:10%,start line:85% size:80% >> Former C.I.A. director John Brennan said, "I have no doubt 1:41:40.370 --> 1:41:46.470 align:left position:10%,start line:85% size:80% that Saudi Arabia would want to embarrass Jeff Bezos and hurt 1:41:46.470 --> 1:41:51.400 align:left position:10%,start line:85% size:80% him financially." >> NARRATOR: David Pecker 1:41:51.400 --> 1:41:54.500 align:left position:10%,start line:85% size:80% demanded that Bezos publicly declare the "Enquirer's" 1:41:54.500 --> 1:41:58.370 align:left position:10%,start line:85% size:80% coverage was not politically motivated or he'd publish 1:41:58.370 --> 1:42:01.000 align:left position:10%,start line:85% size:80% intimate photos of him. >> Breaking news tonight, a 1:42:01.000 --> 1:42:03.270 align:left position:10%,start line:85% size:80% stunner from the richest man in the world. 1:42:03.270 --> 1:42:06.170 align:left position:10%,start line:85% size:80% >> NARRATOR: Rather than give in, Bezos fought back. 1:42:06.170 --> 1:42:08.300 align:left position:10%,start line:85% size:80% >> Jeff Bezos calling out the publisher of the "National 1:42:08.300 --> 1:42:11.570 align:left position:10%,start line:85% size:80% Enquirer," David Pecker. >> Bezos published a personal 1:42:11.570 --> 1:42:14.430 align:left position:10%,start line:85% size:80% account accusing the "National Enquirer" of blackmail, of 1:42:14.430 --> 1:42:16.870 align:left position:10%,start line:85% size:80% extortion. >> He turned the situation 1:42:16.870 --> 1:42:19.170 align:left position:10%,start line:85% size:80% around and handled it so brilliantly-- he was very 1:42:19.170 --> 1:42:21.430 align:left position:10%,start line:85% size:80% transparent, he was very courageous, admitted some very 1:42:21.430 --> 1:42:23.900 align:left position:10%,start line:85% size:80% embarrassing things about himself, didn't try to deny it-- 1:42:23.900 --> 1:42:25.800 align:left position:10%,start line:85% size:80% and positioned the other individual as the bully, and 1:42:25.800 --> 1:42:29.630 align:left position:10%,start line:85% size:80% kicked the bully in the nuts, and somehow turned this into a 1:42:29.630 --> 1:42:32.030 align:left position:10%,start line:85% size:80% net positive. I mean, this really was the PR 1:42:32.030 --> 1:42:34.370 align:left position:10%,start line:85% size:80% strategy and execution of the ages. 1:42:34.370 --> 1:42:36.070 align:left position:10%,start line:85% size:80% I've never seen anything like this. 1:42:36.070 --> 1:42:39.770 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: Publicly, Bezos has 1:42:39.770 --> 1:42:44.530 align:left position:10%,start line:85% size:80% pushed ahead undaunted-- a world-famous celebrity. 1:42:44.530 --> 1:42:47.830 align:left position:10%,start line:85% size:80% And even after a $38 billion divorce settlement, still the 1:42:47.830 --> 1:42:52.030 align:left position:10%,start line:85% size:80% richest person on the planet. (cheers and applause) 1:42:53.330 --> 1:42:56.700 align:left position:10%,start line:85% size:80% But the calls to rein in his company are growing louder. 1:42:56.700 --> 1:43:00.730 align:left position:10%,start line:85% size:80% >> Amazon reported $10 billion in profits and paid zero in 1:43:00.730 --> 1:43:03.600 align:left position:10%,start line:85% size:80% taxes. >> I will single out companies 1:43:03.600 --> 1:43:06.430 align:left position:10%,start line:85% size:80% like Halliburton or Amazon that pay nothing in taxes in our 1:43:06.430 --> 1:43:09.730 align:left position:10%,start line:85% size:80% need to change that. >> Here's Bezos achieving this 1:43:09.730 --> 1:43:14.670 align:left position:10%,start line:85% size:80% American dream and success. And, and he's now the target of, 1:43:14.670 --> 1:43:18.870 align:left position:10%,start line:85% size:80% of all of this criticism. And basically, it becomes a 1:43:18.870 --> 1:43:22.130 align:left position:10%,start line:85% size:80% symbol of all of his problems. >> Amazon is closing 30% of 1:43:22.130 --> 1:43:24.770 align:left position:10%,start line:85% size:80% America's stores and malls and paying... 1:43:24.770 --> 1:43:27.230 align:left position:10%,start line:85% size:80% >> You're basically a piñata dangling in front of any 1:43:27.230 --> 1:43:29.700 align:left position:10%,start line:85% size:80% politician with a populist message. 1:43:29.700 --> 1:43:32.830 align:left position:10%,start line:85% size:80% Anyone who wants to talk about wealth inequality, they're 1:43:32.830 --> 1:43:36.030 align:left position:10%,start line:85% size:80% pointing their finger at you. >> This is why three people own 1:43:36.030 --> 1:43:38.800 align:left position:10%,start line:85% size:80% more wealth than the bottom half. 1:43:38.800 --> 1:43:40.970 align:left position:10%,start line:85% size:80% >> If they want to talk about problems with capitalism in 1:43:40.970 --> 1:43:43.270 align:left position:10%,start line:85% size:80% general, they're pointing their finger at you. 1:43:43.770 --> 1:43:46.470 align:left position:10%,start line:85% size:80% >> We need to enforce our antitrust laws, break up these 1:43:46.470 --> 1:43:52.030 align:left position:10%,start line:85% size:80% giant companies. >> NARRATOR: And it's coming 1:43:52.030 --> 1:43:54.300 align:left position:10%,start line:85% size:80% from all sides. >> President Trump just sent a 1:43:54.300 --> 1:43:57.100 align:left position:10%,start line:85% size:80% chill down the spine of Jeff Bezos... 1:43:57.100 --> 1:44:02.400 align:left position:10%,start line:85% size:80% >> The president again teed off against Amazon on Twitter. 1:44:02.400 --> 1:44:05.130 align:left position:10%,start line:85% size:80% >> NARRATOR: President Trump has made Bezos's ownership of "The 1:44:05.130 --> 1:44:08.000 align:left position:10%,start line:85% size:80% Washington Post" a regular target. 1:44:08.000 --> 1:44:12.100 align:left position:10%,start line:85% size:80% >> "Washington Post," Bezos uses that as his lobbyist, okay? 1:44:12.100 --> 1:44:14.300 align:left position:10%,start line:85% size:80% >> He kind of assumed that "The Washington Post" was operated in 1:44:14.300 --> 1:44:18.330 align:left position:10%,start line:85% size:80% the sort of way that he would operate a newspaper. 1:44:18.330 --> 1:44:21.300 align:left position:10%,start line:85% size:80% And so he thought that Bezos was dictating coverage to the 1:44:21.300 --> 1:44:26.300 align:left position:10%,start line:85% size:80% "Post," which we should be careful to say is not the case. 1:44:26.300 --> 1:44:30.500 align:left position:10%,start line:85% size:80% >> NARRATOR: Trump has also criticized Amazon, and accused 1:44:30.500 --> 1:44:35.300 align:left position:10%,start line:85% size:80% the company of evading taxes. Last year, the company was 1:44:35.300 --> 1:44:38.730 align:left position:10%,start line:85% size:80% competing for a $10 billion cloud computing contract with 1:44:38.730 --> 1:44:41.700 align:left position:10%,start line:85% size:80% the Department of Defense. >> This contract would have 1:44:41.700 --> 1:44:45.300 align:left position:10%,start line:85% size:80% solidified Bezos's dominance in cloud computing. 1:44:45.300 --> 1:44:47.730 align:left position:10%,start line:85% size:80% This is a hugely important thing. 1:44:48.100 --> 1:44:50.700 align:left position:10%,start line:85% size:80% >> NARRATOR: But the company claims President Trump 1:44:50.700 --> 1:44:52.930 align:left position:10%,start line:85% size:80% intervened to scuttle the deal. >> And we're looking at it very 1:44:52.930 --> 1:44:55.070 align:left position:10%,start line:85% size:80% seriously. It's a very big contract. 1:44:55.070 --> 1:44:58.630 align:left position:10%,start line:85% size:80% One of the biggest ever given. >> A big win for Microsoft, 1:44:58.630 --> 1:45:01.470 align:left position:10%,start line:85% size:80% beating out Amazon... >> Amazon can protest the 1:45:01.470 --> 1:45:04.270 align:left position:10%,start line:85% size:80% outcome, especially given the unusual, unprecedented comments 1:45:04.270 --> 1:45:09.570 align:left position:10%,start line:85% size:80% by President Trump... >> It's an extraordinary times 1:45:09.570 --> 1:45:11.670 align:left position:10%,start line:85% size:80% we live in that one of the world's biggest corporations, 1:45:11.670 --> 1:45:14.930 align:left position:10%,start line:85% size:80% Amazon, is now saying, "The president of the United States 1:45:14.930 --> 1:45:17.830 align:left position:10%,start line:85% size:80% has corrupted our ability to win this contract." 1:45:17.830 --> 1:45:19.770 align:left position:10%,start line:85% size:80% >> Is there any evidence of that? 1:45:19.770 --> 1:45:25.000 align:left position:10%,start line:85% size:80% >> The evidence is what the president has publicly said. 1:45:25.000 --> 1:45:26.830 align:left position:10%,start line:85% size:80% >> NARRATOR: And Amazon's problems have continued to 1:45:26.830 --> 1:45:30.400 align:left position:10%,start line:85% size:80% multiply. The Federal Trade Commission is 1:45:30.400 --> 1:45:34.100 align:left position:10%,start line:85% size:80% now reconsidering its stance on antitrust enforcement and is 1:45:34.100 --> 1:45:39.570 align:left position:10%,start line:85% size:80% looking at Amazon-- as are regulators in the E.U. 1:45:39.570 --> 1:45:42.370 align:left position:10%,start line:85% size:80% >> This gatekeeper power and how the platforms are exercising it 1:45:42.370 --> 1:45:45.900 align:left position:10%,start line:85% size:80% is of tremendous concern. >> NARRATOR: In Washington, 1:45:45.900 --> 1:45:49.030 align:left position:10%,start line:85% size:80% Democratic Congressman David Cicilline has launched an 1:45:49.030 --> 1:45:53.230 align:left position:10%,start line:85% size:80% antitrust investigation into allegations of abusive conduct 1:45:53.230 --> 1:45:57.030 align:left position:10%,start line:85% size:80% by Amazon and the other tech giants. 1:45:57.030 --> 1:45:59.630 align:left position:10%,start line:85% size:80% >> Given your experience, do you agree with Amazon's statements 1:45:59.630 --> 1:46:02.400 align:left position:10%,start line:85% size:80% suggesting that it seeks to act in the best interest of 1:46:02.400 --> 1:46:05.730 align:left position:10%,start line:85% size:80% independent sellers? >> I disagree with that. 1:46:05.730 --> 1:46:07.870 align:left position:10%,start line:85% size:80% We get, I don't know, what I might call bullying with a 1:46:07.870 --> 1:46:10.070 align:left position:10%,start line:85% size:80% smile. >> We were able to get several 1:46:10.070 --> 1:46:11.900 align:left position:10%,start line:85% size:80% C.E.Os. to come to a public hearing. 1:46:12.330 --> 1:46:17.170 align:left position:10%,start line:85% size:80% That required tremendous courage because there's a real potential 1:46:17.170 --> 1:46:21.470 align:left position:10%,start line:85% size:80% for economic retaliation for their sharing that. 1:46:22.070 --> 1:46:24.530 align:left position:10%,start line:85% size:80% >> We don't have the resources to fight Amazon. 1:46:24.530 --> 1:46:27.670 align:left position:10%,start line:85% size:80% We could use some help. >> In the course of your 1:46:27.670 --> 1:46:30.100 align:left position:10%,start line:85% size:80% investigation thus far, and you've had several public 1:46:30.100 --> 1:46:34.230 align:left position:10%,start line:85% size:80% hearings, have you seen any evidence of anti-competitive 1:46:34.230 --> 1:46:37.530 align:left position:10%,start line:85% size:80% behavior by Amazon? >> Um, we have seen evidence of 1:46:37.530 --> 1:46:40.570 align:left position:10%,start line:85% size:80% anti-competitive behavior by all of the large platforms as a 1:46:40.570 --> 1:46:43.770 align:left position:10%,start line:85% size:80% result of their market dominance. 1:46:43.770 --> 1:46:45.770 align:left position:10%,start line:85% size:80% But it sort of doesn't fall on the companies to fix this 1:46:45.770 --> 1:46:48.130 align:left position:10%,start line:85% size:80% problem. It falls on us. 1:46:48.130 --> 1:46:50.730 align:left position:10%,start line:85% size:80% Without objection, the hearing is adjourned. 1:46:50.730 --> 1:46:52.930 align:left position:10%,start line:85% size:80% >> NARRATOR: Cicilline's committee is considering 1:46:52.930 --> 1:46:56.130 align:left position:10%,start line:85% size:80% everything from imposing limits on what businesses a company 1:46:56.130 --> 1:47:00.270 align:left position:10%,start line:85% size:80% like Amazon can engage in, to restricting the collection and 1:47:00.270 --> 1:47:04.770 align:left position:10%,start line:85% size:80% use of data. ♪ ♪ 1:47:04.770 --> 1:47:08.230 align:left position:10%,start line:85% size:80% The man who helped Jeff Bezos build Amazon 25 years ago says 1:47:08.230 --> 1:47:12.470 align:left position:10%,start line:85% size:80% it may be necessary to go even further. 1:47:13.830 --> 1:47:16.930 align:left position:10%,start line:85% size:80% >> On the one hand, I'm proud of what it became, but it also 1:47:16.930 --> 1:47:21.570 align:left position:10%,start line:85% size:80% scares me. And, um, I just feel like it's 1:47:21.570 --> 1:47:30.570 align:left position:10%,start line:85% size:80% important for someone in my situation to, you know, at least 1:47:30.570 --> 1:47:34.130 align:left position:10%,start line:85% size:80% say what they think about what's going on. 1:47:34.130 --> 1:47:35.930 align:left position:10%,start line:85% size:80% >> This is sort of in some ways a baby that you gave 1:47:35.930 --> 1:47:39.030 align:left position:10%,start line:85% size:80% birth to, right? And so, I mean, you helped birth 1:47:39.030 --> 1:47:42.830 align:left position:10%,start line:85% size:80% Amazon. >> Um, yeah, very much so. 1:47:42.830 --> 1:47:45.930 align:left position:10%,start line:85% size:80% In fact, I used to, um, you know, get up several times 1:47:45.930 --> 1:47:50.400 align:left position:10%,start line:85% size:80% during the night to, just to see if it was working and... and, 1:47:50.400 --> 1:47:53.600 align:left position:10%,start line:85% size:80% you know, take care of it if it wasn't, so... 1:47:53.600 --> 1:47:55.970 align:left position:10%,start line:85% size:80% >> And when you look at what Amazon has grown into 1:47:55.970 --> 1:48:01.770 align:left position:10%,start line:85% size:80% today, you see what? >> (chuckles) 1:48:01.770 --> 1:48:05.600 align:left position:10%,start line:85% size:80% Well, um... you know, you don't want to see your 1:48:05.600 --> 1:48:11.700 align:left position:10%,start line:85% size:80% offspring, um, become, um, antisocial adults, right? 1:48:11.700 --> 1:48:15.330 align:left position:10%,start line:85% size:80% So I think not all of the effects of the company on the 1:48:15.330 --> 1:48:19.870 align:left position:10%,start line:85% size:80% world are for the best and, um... 1:48:19.870 --> 1:48:23.530 align:left position:10%,start line:85% size:80% And, you know, I, I wish it weren't so, and I... you know, 1:48:23.530 --> 1:48:25.970 align:left position:10%,start line:85% size:80% and I... but I had something to do with bringing it into 1:48:25.970 --> 1:48:29.370 align:left position:10%,start line:85% size:80% existence, so, it's partly on me. 1:48:29.370 --> 1:48:32.070 align:left position:10%,start line:85% size:80% >> And, I mean, isn't... Isn't this just capitalism? 1:48:32.070 --> 1:48:34.070 align:left position:10%,start line:85% size:80% Isn't this just a company doing what a company does? 1:48:34.070 --> 1:48:37.300 align:left position:10%,start line:85% size:80% >> Yes. Yes, it is, um, and I think 1:48:37.300 --> 1:48:41.400 align:left position:10%,start line:85% size:80% they're doing what the business schools teach people to do, and 1:48:41.400 --> 1:48:46.470 align:left position:10%,start line:85% size:80% they're doing it aggressively and skillfully and with great 1:48:46.470 --> 1:48:49.470 align:left position:10%,start line:85% size:80% intelligence. And they will continue to do 1:48:49.470 --> 1:48:53.530 align:left position:10%,start line:85% size:80% that unless they're constrained by other forces in society. 1:48:53.530 --> 1:48:57.230 align:left position:10%,start line:85% size:80% >> There are proposals out there to break up Amazon. 1:48:57.230 --> 1:49:00.730 align:left position:10%,start line:85% size:80% Is that something you'd promote, the idea of breaking them up? 1:49:00.730 --> 1:49:03.000 align:left position:10%,start line:85% size:80% >> Um, I think that they're now at the scale where that could 1:49:03.000 --> 1:49:07.900 align:left position:10%,start line:85% size:80% potentially make sense. >> How do you and Jeff 1:49:07.900 --> 1:49:10.900 align:left position:10%,start line:85% size:80% and others at the senior leadership level think about the 1:49:10.900 --> 1:49:15.400 align:left position:10%,start line:85% size:80% call to break you guys up? >> We don't think about it very, 1:49:15.400 --> 1:49:17.800 align:left position:10%,start line:85% size:80% very deeply. You know, I've been at Amazon 1:49:17.800 --> 1:49:20.370 align:left position:10%,start line:85% size:80% now for 22-and-a-half years, and I always remember one of 1:49:20.370 --> 1:49:22.800 align:left position:10%,start line:85% size:80% the first things I heard Jeff Bezos say back when we could 1:49:22.800 --> 1:49:25.000 align:left position:10%,start line:85% size:80% fit the whole company in just one conference room for an 1:49:25.000 --> 1:49:27.230 align:left position:10%,start line:85% size:80% all-hands meeting. He said, "I would not go to bed 1:49:27.230 --> 1:49:29.930 align:left position:10%,start line:85% size:80% at night fearing your competitors or fearing any 1:49:29.930 --> 1:49:32.300 align:left position:10%,start line:85% size:80% external issues. I would go to bed at night 1:49:32.300 --> 1:49:34.530 align:left position:10%,start line:85% size:80% fearing whether you're doing right by your customers." 1:49:34.530 --> 1:49:36.800 align:left position:10%,start line:85% size:80% And that really is a credo that we live here and it's what we 1:49:36.800 --> 1:49:39.170 align:left position:10%,start line:85% size:80% spend most of our time thinking about. 1:49:39.170 --> 1:49:43.000 align:left position:10%,start line:85% size:80% >> Well, I, I understand that we're big, and that, that we 1:49:43.000 --> 1:49:47.000 align:left position:10%,start line:85% size:80% deserve scrutiny, and I think everything that's... that's 1:49:47.000 --> 1:49:49.300 align:left position:10%,start line:85% size:80% large in the economy and in society should deserve scrutiny. 1:49:50.130 --> 1:49:52.030 align:left position:10%,start line:85% size:80% The problem is, when you think about us, we're in a lot of 1:49:52.030 --> 1:49:54.730 align:left position:10%,start line:85% size:80% verticals, yes. There's... there's video, and 1:49:54.730 --> 1:49:59.300 align:left position:10%,start line:85% size:80% there's commerce, and there's, you know, there's web services-- 1:49:59.300 --> 1:50:02.070 align:left position:10%,start line:85% size:80% there are all these things. But in every one of them, we 1:50:02.070 --> 1:50:06.200 align:left position:10%,start line:85% size:80% have intense competition, and I do understand why, when you're 1:50:06.200 --> 1:50:10.330 align:left position:10%,start line:85% size:80% in a lot of them, it can seem like we're everywhere, but the 1:50:10.330 --> 1:50:12.700 align:left position:10%,start line:85% size:80% global... If we were everywhere, that 1:50:12.700 --> 1:50:14.830 align:left position:10%,start line:85% size:80% means we're talking about the global economy, not just global 1:50:14.830 --> 1:50:20.630 align:left position:10%,start line:85% size:80% retail-- it's so vast, we're just, you know, we're a speck. 1:50:20.630 --> 1:50:23.070 align:left position:10%,start line:85% size:80% >> To the public, it may sound strange coming from 1:50:23.070 --> 1:50:26.500 align:left position:10%,start line:85% size:80% Amazon, which is a company with basically a trillion-dollar 1:50:26.500 --> 1:50:29.570 align:left position:10%,start line:85% size:80% market cap, your C.E.O. is the richest man in the world, but 1:50:29.570 --> 1:50:33.100 align:left position:10%,start line:85% size:80% Jeff Wilke said to me that you're kind of just a speck in 1:50:33.100 --> 1:50:36.400 align:left position:10%,start line:85% size:80% the scheme of things. Do you see how that could seem 1:50:36.400 --> 1:50:41.530 align:left position:10%,start line:85% size:80% strange or incongruous? >> You know, Amazon as a whole 1:50:41.530 --> 1:50:45.770 align:left position:10%,start line:85% size:80% has become, you know, has been successful, but simply because 1:50:45.770 --> 1:50:48.400 align:left position:10%,start line:85% size:80% the company's been successful in a few different business 1:50:48.400 --> 1:50:51.000 align:left position:10%,start line:85% size:80% segments doesn't mean it's somehow too big. 1:50:51.000 --> 1:50:55.000 align:left position:10%,start line:85% size:80% ♪ ♪ >> NARRATOR: As Jeff Bezos's 1:50:55.000 --> 1:50:58.370 align:left position:10%,start line:85% size:80% company is coming under ever greater scrutiny-- for 1:50:58.370 --> 1:51:01.670 align:left position:10%,start line:85% size:80% everything from how it wields power to even its impact on the 1:51:01.670 --> 1:51:07.730 align:left position:10%,start line:85% size:80% environment-- he's continuing to look beyond it all. 1:51:07.730 --> 1:51:11.330 align:left position:10%,start line:85% size:80% >> We get to preserve this unique gem of a planet which is 1:51:11.330 --> 1:51:17.870 align:left position:10%,start line:85% size:80% completely irreplaceable. There is no plan B. 1:51:17.870 --> 1:51:21.070 align:left position:10%,start line:85% size:80% We have to save this planet, and we shouldn't give up a future 1:51:21.070 --> 1:51:23.870 align:left position:10%,start line:85% size:80% for our grandchildren's grandchildren of dynamism and 1:51:23.870 --> 1:51:28.200 align:left position:10%,start line:85% size:80% growth. We can have both. 1:51:28.200 --> 1:51:32.930 align:left position:10%,start line:85% size:80% Who is gonna do this work? (rocket rumbling) 1:51:32.930 --> 1:51:35.270 align:left position:10%,start line:85% size:80% >> NARRATOR: He's spending a billion dollars a year of his 1:51:35.270 --> 1:51:41.000 align:left position:10%,start line:85% size:80% personal fortune on a space exploration company he created. 1:51:41.000 --> 1:51:44.630 align:left position:10%,start line:85% size:80% >> And it's this generation's job to build that road to space, 1:51:44.630 --> 1:51:50.330 align:left position:10%,start line:85% size:80% so that the future generations can unleash their creativity. 1:51:50.330 --> 1:51:53.600 align:left position:10%,start line:85% size:80% >> NARRATOR: For Bezos, it's always been about one thing: his 1:51:53.600 --> 1:51:58.070 align:left position:10%,start line:85% size:80% vision for the future. >> I want you to think about 1:51:58.070 --> 1:52:00.970 align:left position:10%,start line:85% size:80% this. This vision sounds very big, and 1:52:00.970 --> 1:52:04.270 align:left position:10%,start line:85% size:80% it is. None of this is easy, all of it 1:52:04.270 --> 1:52:09.230 align:left position:10%,start line:85% size:80% is hard, but I want to inspire you, and so think about this. 1:52:10.100 --> 1:52:14.870 align:left position:10%,start line:85% size:80% Big things start small. (audience applauding) 1:52:15.330 --> 1:52:21.430 align:left position:10%,start line:85% size:80% Thank you. (audience cheers and applauds) 1:52:21.430 --> 1:52:34.230 align:left position:10%,start line:85% size:80% ♪ ♪ 1:52:34.230 --> 1:52:38.100 align:left position:10%,start line:85% size:80% >> Go to pbs.org/frontline for extended excerpts of our 1:52:38.100 --> 1:52:41.570 align:left position:10%,start line:85% size:80% interviews with top Amazon executives and insiders, 1:52:41.570 --> 1:52:43.730 align:left position:10%,start line:85% size:80% including employee number one. 1:52:43.730 --> 1:52:46.730 align:left position:10%,start line:85% size:80% >> On one hand I'm proud of what it became, but it also 1:52:46.730 --> 1:52:49.070 align:left position:10%,start line:85% size:80% scares me. >> And more on Amazon's use of 1:52:49.070 --> 1:52:52.170 align:left position:10%,start line:85% size:80% facial recognition software. >> I think a lot of societal 1:52:52.170 --> 1:52:55.230 align:left position:10%,start line:85% size:80% good is already being done with facial recognition technology. 1:52:55.230 --> 1:52:57.530 align:left position:10%,start line:85% size:80% >> Connect to the FRONTLINE community on Facebook and 1:52:57.530 --> 1:53:00.970 align:left position:10%,start line:85% size:80% Twitter, and watch anytime on the PBS Video App, or 1:53:00.970 --> 1:53:22.300 align:left position:10%,start line:85% size:80% pbs.org/frontline. 1:53:22.300 --> 1:53:24.070 align:left position:10%,start line:85% size:80% Captioned by Media Access Group at WGBH 1:53:24.070 --> 1:53:31.570 align:left position:10%,start line:85% size:80% access.wgbh.org >> For more on this and other 1:53:31.570 --> 1:53:36.070 align:left position:10%,start line:85% size:80% "Frontline" programs, visit our website at pbs.org/frontline. 1:53:40.430 --> 1:53:47.800 align:left position:10%,start line:85% size:80% ♪ ♪ To order FRONTLINE's, 1:53:47.800 --> 1:53:52.170 align:left position:10%,start line:85% size:80% "Amazon Empire: The Rise and Reign of Jeff Bezos", on DVD 1:53:52.170 --> 1:53:57.000 align:left position:10%,start line:85% size:80% visit Shop PBS or call 1-800-PLAY-PBS. 1:53:57.000 --> 1:53:59.630 align:left position:10%,start line:85% size:80% This program is also available on Amazon Prime Video. 1:54:03.430 --> 1:54:06.400 align:left position:10%,start line:85% size:80% ♪ ♪