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Perlman: I didn t know. Bruce told me on the cab ride over. I said, What about
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the stability Bruce, Japanese is nice but . . . And he said, Don t worry. It won t crash. It will be fine, it will be fine. We gave a great demo in Palo Alto, and now we re going to give this demo to the president of Sony Corporation, and we re going to fall flat on our face! Well, it didn t crash. It worked beautifully. The CTO was there, and we said, By the way, there was one web page that you went to in Palo Alto that didn t work. Well, it does work now. We typed it in, and, sure enough, it showed beautiful Kanji, and we won him over. Then they said, We want to go back to the original contract we negotiated with a 1-year exclusive. And we said, We would love to do that, but now we have a deal with Philips, and so we can no longer offer you an exclusive. They were very unhappy about that, but, in the end, they felt it was worth doing. So there it was. We had a deal with both Sony and Philips at the time, the two powerhouses in consumer electronics. Now that we had these deals in place, we raised Series C. I think we raised about $35 million.
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Livingston: Did you get funding from the same people Perlman: Well, Brentwood re-upped, and I think Vulcan re-upped, and the
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Davises did what they did at Catapult they flipped. They sold their shares to other investors. They re not technology people, so they saw it purely as an investment. And they were happy as clams. I think they got seven times their money in less than a year. And then Microsoft came in, interestingly enough, and Citicorp and St. Paul Venture Capital. Some individual investors came in, and also Seagate, I think, put some money in. And Washington Post Group. A lot of people were interested in the subject area. We expanded the board then, so the board was now the three cofounders; we had Randy Komisar as an outside director, and we had representatives from Brentwood, Vulcan, and I think that was it. Maybe we had one other guy. Then we cranked. We introduced the product in July of 1996 one year almost to the day after I got that first check from Marvin Davis to fund the company. It had custom hardware, a browser from the ground up, proxy servers, and so forth. The whole network was supported, and I was true to my word when I called the guy at Pacific Bell and told him that we were going to be running a nationwide online service.
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Livingston: How did the idea for WebTV evolve Was it to make the Web avail-
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able to people who might not have computers
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Perlman: Yes. I should go back even further. My mission, even before then, was to connect average people together doing non-engineering things, the things that interest them to foster better communication, sharing of ideas, and for pure entertainment. I love storytelling; my favorite college class remains The Novel. I wanted to figure out how to do communication. I wanted to figure out consumer electronics. I wanted to figure out ease of use, you know, interfaces.
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I wanted to work with televisions, audio systems. That s what I ve been interested in, and it has driven all the things I ve done. When I joined Apple and interviewed with them, they weren t even interested in doing color, and we brought them over to doing color. We created the whole color model as well as the rest of multimedia for the Mac music and sound and everything. We made the Macintosh from a little black and white computer into a multimedia powerhouse. And it was driven really by what my ultimate desire was: as a delivery vehicle for multimedia and a means by which you can interact. Video games are one kind of interaction. That s great, but there is more than just that. I think that, in the end, if you have enough people communicating with one another, it s going to be really hard to go and blow each other up. They may send nasty messages on blogs, and they may argue and maybe somebody will write something unpleasant in Wikipedia about you, but that s a lot better than blowing someone else up.
Livingston: Was it hard designing something for non-technical users Perlman: It s extremely hard, because you have to design for someone who s
not you. After a while, as you develop interfaces and have experience with them, you begin to think with the intuition of a person who does not understand the inner workings of the system. And you also have to do a lot of testing. You have to be good at testing. You have to know what questions to ask people and what problems to present to them. The following is not something from my personal experience it s a story told to me by the Mac team but they said that, when they first did the dialog boxes for the Lisa, instead of saying OK, it said, Do It. They found that people were reluctant to click on that, and they couldn t figure out why. Then, once they had a test subject there who just wouldn t click on it, they said, Why didn t you click on that little button there He said, I m not a dolt. Why would I click on that People were reading it as dolt, not do it, because it was an unusual combination of words. So they changed dialog boxes to say OK. That little change greased the skids for people to click on dialog boxes. It s very small stuff like that, very often that somebody sees something and has the wrong impression. The only way to learn that is by doing a lot of testing. In fact, that s one of the reasons why the iPod was such a phenomenal success where the MP3 players before were not. The iPod had the design sensibility of an average person just trying to listen to music, whereas the previous MP3 players were kind of technical exercises in understanding how music files are stored, and perhaps required very delicate balancing of your fingers to hit the buttons the right way, and so on.
Livingston: Were you inspired by the Apple II s use of TV as a monitor Perlman: Well, Apple IIs did work on TV screens, and I was inspired by the fact that it was a friendly-looking computer and that it had color. But it was not an easy-to-use computer. That s one of the reasons I didn t join Apple earlier. I didn t see where that was going to go.
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