WEBVTT - Penrose's Chung on Google's Daydream VR Platform Debut (Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg to Washington, d C,

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<v Speaker 1>Bloomberg to Boston, BLUEMBERG twelve hundred to San Francisco, Bloomberg

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<v Speaker 1>nine to the Countries, is at M and around the

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<v Speaker 1>globe the Bloomberg Radio Plus and Bloomberg Got Gone. This

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<v Speaker 1>is taking stock. According to reporting from Bloomberg, Google is

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<v Speaker 1>set to launch day Dream virtual reality sometime in the

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<v Speaker 1>coming weeks. They're laying the groundwork for the launch of

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<v Speaker 1>this virtual reality and network. It comes also with the

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<v Speaker 1>official debut of the Androids seven point O operating system

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<v Speaker 1>this week. The new report says Google is investing in

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<v Speaker 1>big and original content to include the launch of its

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<v Speaker 1>VR platform. We've got more on virtual reality coming up

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<v Speaker 1>right now, Real Reality with Charlie Pellett in the Bloomberg

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<v Speaker 1>newsroom with the Bloomberg Business Flash and at the keep

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<v Speaker 1>pim Fox and Alphabet Parrot of Google trading little change

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<v Speaker 1>right now, up thirteen cents. The stock is at seven

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<v Speaker 1>seventy two twenty eight. The dial the SMP NZDAC all

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<v Speaker 1>advancing at or near records. The SMP five hundred index

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<v Speaker 1>up five to record there one nine point fifteen Nazdak

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<v Speaker 1>is at a record right now at fifty two sixty three,

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<v Speaker 1>up four tenths of one percent. Dow industriels up twenty six,

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<v Speaker 1>a gain of two tenths of one percent. Wall Street

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<v Speaker 1>is looking ahead to FED share, Janet Yelling speech Friday,

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<v Speaker 1>and Jackson Hole, as well as next week's jobs report.

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<v Speaker 1>Jim Glassman is senior economists of JP Morgan Securities. He

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<v Speaker 1>was interviewed this morning on Bloomberg Surveillance. They've been telling

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<v Speaker 1>you that they understand that the official onto Plumber, he

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<v Speaker 1>doesn't capture the whole picture. The fact is, though we

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<v Speaker 1>are making progress, and um, that doesn't mean you keep

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<v Speaker 1>rights to zero forever. That's the problem. Uh. It looks

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<v Speaker 1>like the labor market is improving slowly, and I think

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<v Speaker 1>if the Fed can slowly work its way back to

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<v Speaker 1>norm mall, we're gonna have a very good chance of

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<v Speaker 1>extending this eight year expansion into something much longer. The

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<v Speaker 1>ten year down to thirty seconds, the yield one point

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<v Speaker 1>five five percent. The SMP five hundred index advanced after

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<v Speaker 1>data showed a surge in American new home sales and

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<v Speaker 1>a slowdown in manufacturing best by soaring eighteen point eight percent.

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<v Speaker 1>After the electronics retailer reported earnings, The Beat analyst projections

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<v Speaker 1>gold up to seventy the ounce, a little change the

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<v Speaker 1>thirteen forty two, a gain of two tents of one percent.

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<v Speaker 1>Crude oil West Texas Intermediate of one point four percent

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<v Speaker 1>of sixty four cents forty eight oh five for a

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<v Speaker 1>barrel of West Texas Intermediate Crew three thirty two on

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<v Speaker 1>Wall Street. Now, let's take a look at some of

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<v Speaker 1>the other stories making news. Thank you Charlie from the

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<v Speaker 1>Bloomberg News Room. I'm Jill Schneider. This news update is

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<v Speaker 1>brought to you by the Jeep Grand Cherokee, the most

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<v Speaker 1>awarded suv ever. The Grand Cherokee continues to raise the

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<v Speaker 1>bar with its luxurious interior and legendary four by four capability.

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<v Speaker 1>Drive one at your local Jeep dealer. Today. Hillary Clinton

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<v Speaker 1>is making some new tax proposals aimed at encouraging investment

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<v Speaker 1>in small business. Bloomberg's Bob Moon has highlights. Along with

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<v Speaker 1>the standard deduction for small businesses, Clinton is calling for

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<v Speaker 1>a quadrupling of the tax deduction for new businesses. The

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<v Speaker 1>proposals would be paid for with some of the money

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<v Speaker 1>raised from her previously proposed overhaul of corporate tax laws.

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<v Speaker 1>She also plans to offer federal incentives to state and

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<v Speaker 1>local governments that streamline unnecessary licensing and find ways to

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<v Speaker 1>make it less expensive to create a small business. President

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<v Speaker 1>Obama got a first hand look at the damage caused

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<v Speaker 1>by catastrophic flooding in Louisiana today. Speaking in Baton Rouge,

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<v Speaker 1>Mr Obama said he knows how resilient the people of

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<v Speaker 1>Louisiana are and is confident they will rebuild. Today is

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<v Speaker 1>cheap flight day, when peak summer prices traditionally drop from

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<v Speaker 1>seasonal highs to off peak lows. Fair Compare CEO ric

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<v Speaker 1>Cini says some of the best deals come to travelers

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<v Speaker 1>with flexible dates. The window of time to shop is

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<v Speaker 1>right here at the end of August and the first

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<v Speaker 1>two or three weeks in September, and that's the perfect

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<v Speaker 1>zone to shop really for the next three or four

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<v Speaker 1>months of departures. Authorities are asking people in certain areas

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<v Speaker 1>of Brooklyn and Queens to stay indoors overnight tonight. While

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<v Speaker 1>City Health Department officials spray past decides to prevent the

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<v Speaker 1>West Nile and Zeke of viruses. Officials say no trace

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<v Speaker 1>of Zeka has been found in any local mosquitoes, and

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<v Speaker 1>the spraying is just a precaution. Global News twenty four

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<v Speaker 1>hours a day, powered by more than journalists and analysts

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<v Speaker 1>in more than one twenty countries. I'm Jill Schneider, and

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<v Speaker 1>this is Bloomberg, Charlie, and we thank you. What again

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<v Speaker 1>recapping SMP five hundred index up five to gain there

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<v Speaker 1>of three tenths of one percent. I'm Charlie Palatine. That's

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<v Speaker 1>sub Bloomberg Business Flash. This is taking Stock with pim

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<v Speaker 1>Box and Kathleen Hayes on Bloomberg Radio. Virtual reality, What

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<v Speaker 1>is it and how does it work? And what are

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<v Speaker 1>Google's plans to dominate this industry? We have Eugene He

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<v Speaker 1>is the chief executive and the founder of Penrose Studios.

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<v Speaker 1>He joins us from a San Francisco home to Bloomberg

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<v Speaker 1>nine sixty and he can be followed on Twitter at

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<v Speaker 1>e y see Eugene Chung. Thanks very much for being

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<v Speaker 1>with us. Thank you for having me. Can you describe

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<v Speaker 1>what is virtue reality and how do you put it together?

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<v Speaker 1>Absolutely so. Virtual reality is a revolutionary new technology. It

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<v Speaker 1>allows a user or a viewer to take a virtual

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<v Speaker 1>reality head amounted display and when that viewer puts it on,

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<v Speaker 1>they are instantly transported to another world. It's called presence

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<v Speaker 1>or the magic of presence, which is that unmistakable feeling

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<v Speaker 1>that you are someplace else. All right, you're someplace else.

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<v Speaker 1>But how does it work? I mean, I can imagine,

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<v Speaker 1>for example, wearing three D glasses. You know, you've got

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<v Speaker 1>a red and a green filter. You go into the

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<v Speaker 1>movie theater. That's old hat. This is nothing to do

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<v Speaker 1>with that, is that correct? That's absolutely right. This is

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<v Speaker 1>very different from three D technologies. It actually a modern

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<v Speaker 1>virtual reality has come about after the waves of VR

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<v Speaker 1>that we passed for several decades. So VR was around,

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<v Speaker 1>you know, tens twenty years ago, but unfortunately it was

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<v Speaker 1>either too expensive and therefore only the military got to

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<v Speaker 1>use it, or it was cheap but it wasn't very good.

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<v Speaker 1>So things like the intended virtual boy come to mind. However,

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<v Speaker 1>with modern virtual reality, the advancement of smartphone screens means

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<v Speaker 1>that Apple and Samsung spent billions of dollars in other

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<v Speaker 1>companies spent billions of dollars making high resolution, high refresh

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<v Speaker 1>rate screens, and the unintended beneficiary was the virtual reality industry.

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<v Speaker 1>So now in the last several years, we had a cheap,

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<v Speaker 1>relatively cheap consumer made br that utilizes cellphone screen technology

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<v Speaker 1>and you put out those cellphone screens inside of the

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<v Speaker 1>headbound display and as you you look around, the world

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<v Speaker 1>moves around with you, or at least it seems to.

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<v Speaker 1>And therefore you're the consumer is able to pretend or

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<v Speaker 1>feel like there's someplace vastly different from where they are now. Well,

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<v Speaker 1>Eugene explained, then how does Penrose Studios fit into all this?

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<v Speaker 1>And just by way of background, before founding Penrose Studios,

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<v Speaker 1>you were ahead of film and media at Oculus VR

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<v Speaker 1>and that was later required by Facebook for two billion dollars. Yeah,

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<v Speaker 1>absolutely right. So Penris Studios at Penri City is we're

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<v Speaker 1>a startup based in San Francisco, and we are dedicated

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<v Speaker 1>to making high quality, heard, warming, emotional stories and movies

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<v Speaker 1>inside of virtual reality. UM. We utilize a real time

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<v Speaker 1>engine that allows you to move around is space and

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<v Speaker 1>really explore the space. The highest end VR consumer handsets

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<v Speaker 1>today allow you to explore FID team foots by fIF

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<v Speaker 1>team foot space. UM. So we take this technology and

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<v Speaker 1>we create our own technologies to go build these virtual

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<v Speaker 1>worlds and the characters as well as the stories within them,

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<v Speaker 1>and of course the portamont to different VR headsets like

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<v Speaker 1>the aduost, HTC Live and now Google Daydreams. Now, one

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<v Speaker 1>of the movies that you have made is called The

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<v Speaker 1>Rose and I. It debuted at the Tribeca Film Festival

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<v Speaker 1>in and this is described as the first virtual reality

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<v Speaker 1>feature movie, absolutely right. So you know, the rese and

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<v Speaker 1>I was our early attempts at VR storytelling, you know,

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<v Speaker 1>and in many ways that sort of harkens back to

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<v Speaker 1>the early days of filmmaking, which is twenty years ago.

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<v Speaker 1>And in many ways we see this as the birth

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<v Speaker 1>of a brand new artistic medium. And just as the

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<v Speaker 1>cinema came in and displaced existing form as a visual

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<v Speaker 1>audio storytelling in any ways, so theater opera, Uh, we

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<v Speaker 1>believe that VR is this next great wave of artistic storytelling.

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<v Speaker 1>So you know, the allumet our second piece is now

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<v Speaker 1>twenty minute piece. Then it tells a full narrative story,

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<v Speaker 1>and it's one of the longest vur narratives of its type.

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<v Speaker 1>Um and we're just starting to grass the service and

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<v Speaker 1>break ground about what this new medium is going to do.

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<v Speaker 1>If you're going to make a virtual reality move to

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<v Speaker 1>be seen on the Daydream virtually reality network of Google,

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<v Speaker 1>would you have to use sixteen cameras. So you know,

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<v Speaker 1>there are different ways to get the content on Daydreams.

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<v Speaker 1>So Google is definitely very focused on its Joke camera system,

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<v Speaker 1>which which works well with its Google Daydream system, and

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<v Speaker 1>that's to create three sixty videos. So you know, if

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<v Speaker 1>you want to create three sixty videos for the platform,

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<v Speaker 1>the Google Jeff camera is the way to go. However,

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<v Speaker 1>Google Daydream is following in the footsteps of many of

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<v Speaker 1>the sort of major players and VR so like Basbook, Oculus,

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<v Speaker 1>the Vibe, and Samson with a gear VR and PlayStation

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<v Speaker 1>with its own headset. And what it's doing is it's

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<v Speaker 1>allowing the creation of what's called real time storytelling, a

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<v Speaker 1>real time rendering as well. So you know, in a movie,

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<v Speaker 1>you have CG animated films and you also have real

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<v Speaker 1>films UM in VR. What's interesting is that CG animation

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<v Speaker 1>or sort of what we call real time animation actually

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<v Speaker 1>works really really elements out of virtual reality because allows

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<v Speaker 1>you to move around in the space, the explore the space,

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<v Speaker 1>um you know, better than the other players. So this

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<v Speaker 1>new iteration of Google Daydream, what they're updating is they're

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<v Speaker 1>allowing you to use real time engines like Unreal Engine

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<v Speaker 1>and Unity and things like that. UM and that's actually

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<v Speaker 1>what we're going to utilize because we believe that it

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<v Speaker 1>delivers the higher level immersion. So it's still a film,

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<v Speaker 1>you know, it's still movies, but you're able to use

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<v Speaker 1>utilize the three sixty engine and uh and that's different

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<v Speaker 1>from you know, a three sixty degree video. So you

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<v Speaker 1>have a lot of options, and the Google is doing

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<v Speaker 1>a great job and updating the platform for the capability.

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<v Speaker 1>Thanks for explaining all of this. Eugene Chung is the

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<v Speaker 1>chief executive and the founder of Penrose Studios. Joining us

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<v Speaker 1>from San Francisco, of course, home to Bloomberg six. You're

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<v Speaker 1>listening to Taking Stock. I'm pim Fox my co host

0:10:52.200 --> 0:10:55.040
<v Speaker 1>Kathleen Hayes on her way to Jackson Whole, Wyoming for

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<v Speaker 1>the Federal Reserves Annual Symposium. This is Bloomberg coming up

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<v Speaker 1>on taking Stock. We're gonna take stock of investing in silver.

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<v Speaker 1>Price of silver is up more than thirty percent so

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<v Speaker 1>far this year. We've got details on whether that rise

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<v Speaker 1>will continue