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tv   Bloomberg West  Bloomberg  June 8, 2015 8:30pm-9:01pm EDT

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emily: apple jumps into music streaming. we have everything you need to know from apple's worldwide developers conference. i'm emily chang, this is a special "bloomberg west" live from outside the worldwide developers conference in san francisco. coming up, ceo tim cook will talk about new innovations. will it be enough to drive momentum?
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plus, apple watch gets a makeover. we will have all you need to know. and, super citing -- super sizing apple pay. that is all i had on "bloomberg west". -- all ahead on "bloomberg west" . >> all the way he loved music, all in one place. that place is in a billion hands around the world already. one app on your iphone. emily: interscope records founder jimmy iovine, on stage perhaps the most magnetic performance of everything at wwdc, revealing apple music which gives access to 30 million songs stored in the itunes library and a worldwide live radio station broadcasting 24 hours a day eerie like spotify pandora and google, the subscription costs $9.99.
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you can sign up for a free three-month trial. drake introduced the service on stage. will customers buy in? here with me live outside the developers conference brian white from cantor fitzgerald ben thompson, and ceo dave parker. he caters to millenial's. a shot across the bow towards companies like pandora they said internet radio isn't radio, it is just plain lists. how do you respond? >> they have taken an approach that is similar to eight tracks focusing on cure ration. when you think about pandora, it is algorithmically driven.
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people program to stations and identify the blueprint of the song. but playlist are not curated. with what these folks are doing they are taking a cue from sirius xm. it is similar to eight tracks. with a tracks, it is a plurality of voices. people around the world are making playlists. emily: should other companies be worried? >> for sure. it is to halt. defaults are powerful. they brought out apple maps 3.5 times they usage of number two, which is google. anything's that is default, it has an advantage. >> i think they will bring music streaming mainstream. they have 800 million itunes users. i don't view it as a threat to incumbents. the market will be big. emily: when you look in numbers
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in terms of what it could add to the bottom line, 15 million subscribers like spotify, that is less than 1% of revenue. how big a deal of this -- is this to apple? >> i don't think it is a big deal. the presentation was all over the place. it felt like, we are doing music because people love music. the lack of focus was concerning. it is a big opportunity for the mower -- the more music focused startups. emily: what you say? >> they are a player. i think they can be a big winner in this gigantic market. financially, who cares? keeping people in the article system satisfied, i think they will. emily: dave, why isn't apple going to eat your lunch?
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>> basing about 50% of consumers spend no money on music each year. 40% spend $15 per year. they are focused on that 10%. the bigger market is radio. emily: doesn't make a difference that you have musicians behind it, jimmy iovine behind it? >> jimmy iovine is a genius. we don't play in that world, but i think it is an interesting thing. emily: apple is trying to do a lot of things. is it too much? streaming, global radio, downloading music. they are trying to be a social network for music. what? >> i share those concerns. part of it for sure, the labels have so much control over how music is consumed. they could do a three tier which is where the regular
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service comes in. in music in general, given the power of the labels, doing anything beyond user interface will be apple's best that. emily: why want one music service -- why will why music service not without? >> there will be room for other players, as well. either they will cater to a certain niche a crowd who will listen, or a certain type of music. bringing jimmy iovine in here is huge. this is a big thing. emily: he was the best presenter by far. >> this is huge. musicians trust him. when they launched paying it -- when they launched ping, you cannot take off. this is more than streaming music. this is an entire platform. emily: dave what will you be doing differently? >> we focus on trying to do one
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thing really well. we do discovery and playlist better than anyone else. we will stick to that. emily: i interviewed the founder of pandora and he said the same aim. dave porter, brian white and then, thanks for joining me. besides music streaming and ios nine, diversity on display. for the first time in five years, women took the stage during the keynote. we saw jennifer bailey, vice president of apple pay. we talked about products and mobile payments. this comes after tim cook acknowledged over the weekend that the lack of women in apple keynotes was the fault of the tech community. apple's diversity reports as men make up 70% of the workforce and the u.s., 50% of workers are
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white. perhaps this come to -- this picture, the line for the men's room at the wwdc, for the ladies room. there was no line. coming up, pounding the pavement in new york and chicago. teaming up with alibaba. that is ahead. ♪
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emily: a story we are watching, jack ma visiting new york and chicago. the alibaba chairman pitching china's middle class is an opportunity. tonight, he will dine in manhattan. tomorrow, he will have lunch at the economic about new york and the bloomberg west team will be in attendance. he will hold a townhome -- a town hall meeting in chicago. at some point, international revenue, he says, will be 60% of alibaba. six weeks ago, apple released the apple watch. today, the announced an updated version of the watch operating system, which allows for apps.
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so what does it mean for the future of wearables? we have brian white of cancer -- cantor fitzgerald you guys were mentioned in the keynote. what is different about your company's experience on the watch? >> it is inactive in each record. people can compare their activities to one another. having our app on your watch can record your activity. with the upstate -- the update you can have a heart rate monitor. they can see whether they are exerting themselves or not. emily: there is an application to send your heart rate to someone else. how big a step forward is what we saw with the watch today? >> it is significant. before, when the watch was released, all the negative
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reviews were about the apps. now, it feels like the original iphone when they had solutions for developers. it wasn't a great experience. actual apps change the world. i think actual apps will change the experience with the watch. emily: we are all wearing our apple watch is. do you feel this is something you can't live without? or do you feel like it is just nice to have? >> clearly, it's nice to have. what is interesting is, native apps cut the cord to the phone. if this were a standalone advice -- device. >> it is a device i am willing to wear and happy to have. could i live without it? probably. >> some parts of it are great. the notifications are great. emily: it's not overwhelming?
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>> not for me. i think the changes make it more functional. native apps will be a big deal. a lot of the things that are he popped up will be addressed. emily: the availability of native apps, the speed and efficiency will all improve. lots of things air -- they are talking about our far in the future. >> something that involves lots of pieces will take a long time. i think that is the long-term vision, when this is my identity and i interact with my environment. you need to get there first. i can look down and see the sports score. it gives it a reason to exist until it becomes a center of your existence. emily: what has it been like for
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you developing for the watch? >> it is a brand-new platform. that is the most difficult and. a new environment. have to wait for it to mature. at the end of the day, it is a new model for interacting with information. i think that is the innovative part. the platform will develop, more apps will happen. it has a great future. it is in the early days. emily: any revisions to how big you think the business can become? >> we said this would he the biggest selling new product in apple's history. bring in the apps, that is what will draw in demand. people look at the watch, it is cool. emily: there are few apps that work well on the watch.
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>> new developments better performance, that will be huge. emily: what else do you want to see? >> i am excited in the long run. i want a connection where i don't have -- don't need my phone at all. you can't overstate the importance of native apps. it makes for a better experience. emily: you guys are sticking with us. congratulations for the mention. thanks for joining us. now to robot revolution. a korean team of engineers is $2 million richer after winning a darpa challenge for building a robot. darpa created the event in the wake of the 2011 google sheila nuclear disaster, realizing that robots may have mitigated the damage there.
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the robots completed obstacle courses and walked rubble. the robot ways 176 pounds and can wheelaround. coming up, series is working over -- siri is working overtime. plus, check out this video. spacex released it from a go pro attached to the nose of a falcon nine rocket. the camera filmed the dissent back to earth. we will be right back. ♪
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emily: time now for the de-levite. one number that tells a whole law. today's number of requests apple says siri processes every week. that means it siri is fulfilling 99,000 requests per minute everything from telling jokes to the weather. apple announced siri will be more proactive, cutting word recognition issues i 40% -- by 40% and integrating reminders into your calendar. here at apple developers conference, we have heard
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announcements about apple pay the mobile payment system. it is expanding to one million locations. it is rolling out in the united kingdom. here to digest this, brian white , ben thompson. phil, apple pay, from your vantage point, how big a deal worthy enhancements to apple pay? >> i am optimistic. the emphasis on payments from apple and google a couple weeks ago really shows both of these companies looking at a world where advertising can be the main way of making money. whoever controls payments will have the leverage to succeed in the future. overt advertising will diminish. both apple and google realize this is happening. apple is in a better position than global right now in payments. emily: when uxo those thoughts?
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-- when uxo those thoughts -- w ould you echo those thoughts? ben: with apple pay, you could have a better conversion rate on mobile than the desk top. emily: how much do you see apple pay really adding to the bottom line? brian: is a relatively modest even in the future. i do not think it will have a financial impact. what gets me excited, it brings people into the echoes system and keeps them there. i use it multiple times a day. , they will be moving into the u.k.. they changed passbook, it will be called apple wallet. emily: doesn't microsoft already do that? oh wait, that spotify thing.
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apple's borrowing things from other companies and integrating them. >> that is normal. i believe if there is a good idea, it is more discovered been created. like the iphone, is a rectangular touchscreen. all phones are like that. emily: we are seeing a lot of enhancements to ios nine. how important are those in your app development? phil:? -- the apple echoes system -- ecosystem the split screen apps and the ability to run to apps at once that will make a huge difference. enhanced search capabilities is great. the watch will make an impact. evernote and productivity apps will get a boost. emily: a refinement year? phil: they focused on user
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experience today, increased security. those were themes. emily: an interesting comment from an executive about data. he says we are not interested in owning your data. it will all be on the device. we don't want it. is that genuine? brian: i think it is genuine, but -- emily: so it is genuine? brian: google is better and processing it. are they taking advantage of the situation or do they think they can get a marketing edge by selling the fact that they don't use data? >> it is a fact, right? >> there is no evidence that consumers care. >> i think is -- consumers will care a lot. is personal wearable devices become more mainstream and
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intimate, our tolerance for where our data goes will become significantly more constrained. you can make a wonderful experience by focusing on the product and the experience and not focusing on being clever with monetizing data. there is a genuine feeling on the part of apple that they will make better product that they focus on making a product that people want to pay for, not making a product that is trying to get your data to do something clever a -- on the backend. >> to what extent will that make them a better product? if google extends its lead, apple is asking you to pay for in them -- inferior products. >> people expect great products. if they can get a great product for free, they will choose that. as soon as three makes the product worse, people will happily go for the better product.
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>> with nsa and edward snowden, this is in portland -- important to many of my friends. emily: this is a debate we will have after the show. lots of exciting stuff today at wwdc. ben brian phil, thanks. we will see what apple does of a next few months. will he see a new tablet soon? >> and ipad pro edited next year, i highly doubt in the fall. emily: what is your number one? >> the watch. the facts not what it is today, but what it will be. we got a glimpse of the future. emily: thanks for joining us and joining us for this special edition of "bloomberg west" in
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san francisco. tomorrow, the ceo of rhapsody breaks down the music stuff. we will see you then. ♪
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e:. charlie:we begin with a hack of personnel records from computers across the government. it may be the largest reach ever of u.s. government networks. investigators suspect china is behind the attacks, which china denies. we turn to david sanger, let me begin with the basic question. how serious is this? how much damage does it do react go? david:

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