Skip to main content

tv   Bloomberg Technology  Bloomberg  March 14, 2017 5:00pm-6:01pm EDT

5:00 pm
that 14 million americans could lose health coverage next year. budgete, the white house chief is skeptical about that assessment. he says the cbo was wrong on coverage predictions or obamacare. white house spokesman sean spicer says the president is extremely confident the justice department will produce evidence former president obama had trump tower wiretapped. the gop has asked lawmakers for more time. the house says it has until 20.h the u.s. is considering more penalties on chinese companies in response to allegedly growing evidence of beijing support for north korea's weapons program, according to the wall street journal. the u.s. secretary of state rex tillerson travels to asia this week. meantime, trump met with the crown prince to the saudi throne. it is the highest visit by a royal sense the election. energy transfer partners has asked a federal judge to reject
5:01 pm
the latest attempts by american indian tribes to stop the dakota access pipeline. oil could begin flowing next week here global news 24 hours a day, powered by more than 2600 journalists in more than 120 countries. i'm alisa parenti. this is bloomberg. ♪ caroline: i'm caroline hyde. "bloomberg technology." coming up, a steady stream of software startups take a punch on the public market. let's not ipo a help or hindrance to the rest of the tech unicorn? plus, microsoft takes on slack chat software for office 365 customers. netflix tries to outshine movie theaters can hollywood.
5:02 pm
help the streaming company industry?e film first to the lead. a handful of tech ipos emerged in the aftermath of a volatile debut for snap. although they are not household names, they are all software companies capitalizing on the expanding market. real soft planning to the public as soon as friday, just listed the target share price range. last week we reported that -- does this signal a boom in tech ipos are is the market right for software giants? group joins us. jam he was one of the comanagers on snap debut. also with us, forrester research vice president julie. you have written a piece saying
5:03 pm
you didn't get a market that is better than right now. why is a good right now? >> i say the ipo market doesn't have the demand problem, it has a supply problem. the market has been open. it has all the makings of a great ipo market. we just haven't seen companies coming to market. snap hopefully is a bit of a coattail event for other technology companies, and other companies going public in general. if you look at the average ipo up 36%. so far the average ipo is up 14%. a great performance by almost every deal that has come public. good companies come in public. the markets overall are up. volatility is very low. it's a historic low. you really got all the ingredients for what normally
5:04 pm
would be a much more robust ipo market. beenine: we have just showing charts of how 2016 was slower than 2015 fisher, but still tech was leading the way. i want to ask about the sweet spot. the ones we are talking about are in the $100 million range, not $3 billion that we saw come from snap. are we going to see big ones like cloudera start to come out? >> i would say why not? exactly what you say, there is a supply problem, not demand. the other point i agree with is that the market and economy has been very strong the past seven or eight years, and it is hard to say how long it is going to last. if i were the head of a strong -- small, young company, i would wonder how long the window would be opening. caroline: that is fascinating, we heard yesterday from the
5:05 pm
airbnb ceo saying they are halfway through the two-year ipo lineup. in two years, rates will have come a little higher. you said before the private markets have tapped out, but then we saw airbnb raise $1 billion. nuanced.a bit more a company like airbnb can continue to raise money in the private market. it's a real bellwether. it also can probably go public at any time no matter the ipo market. they are going to dictate their own timing. i think for the broader universe of unicorns are companies getting high valuation in the private markets, i think we are at the end stages of that. we can especially see with big public mutual funds like fidelity that have been investing in late stage privates, i think they are taking a bit of a positive. -- pause. they have a lot of private companies they have invested in,
5:06 pm
but i think they want to see returns on and get public. and just in general want to see more evidence that those valuations are supportable in the public market. is forrester bracing itself for dropbox or some other not quite so airbnb, some other private companies to come public? >> i would echo what you just said.the other part of it is companiesa lot of going public with evaluations that are based on a lot of optimism about how much companies are going to spend on marketing or advertising or mobile, and isn't a strong base -- business case for revenue to justify the valuations. interestingly, you weren't only on snap, you are app dynamics. on we have seen that interesting element occur, but also the voting power with snap being taken away from shareholders. a lot of control being held by
5:07 pm
these companies. is that what we are going to see as well? >> only a few companies can pull that off. snap was going to have the demand for their deal whether they had full voting rights are not. snapnk that is unique for and a few others. when facebook went public, they had shares as well. i don't think that will be a trend. caroline: or swooping in at the last minute. >> could be. about to launch what would have been a very successful ipo. it was well oversubscribed. they were at the pricing table for their ipo when cisco came in and paid a price that was double what the ipo price would have been. the bigger companies need to get growth, and buying at dynamics for cisco was a way to do that. caroline: thank you very much.
5:08 pm
group, and of jmp julie from forrester research is sticking with us this hour.a story we are watching. germany is threatening to find social networks like facebook more than $15 million if they don't give you the option to complain about hate speech. this is also if the company refuses to remove illegal content.the first act of the legislation was presented tuesday. if passed, it would be the steepest fines. merkel's government is under pressure to curb the spread of take news. we just covered how market conditions impact the ipo market. next we dig into the hike -- cycle of low volatility is impacting the biggest public tech companies. a reminder that all episodes of "bloomberg technology," our live streaming on twitter. check us out at 5 p.m. in new york, 2 p.m. here in san francisco. this is bloomberg. ♪
5:09 pm
5:10 pm
5:11 pm
caroline: ad markets in the u.s. will grow by 16% this year. ads willrom digital increase 15% for google and 32% for facebook. the furious growth is also forting to shrink the gap google. what about the newest public company jockeying for advertising dollars? snap will boost ad revenue by 158%, to 700 $70 million in the u.s. this year and could reach over $2 billion in 2019. with a relatively downbeat day for u.s. stocks, with the tech heavy nasdaq falling three quarters of 1%, let's good abigail doolittle in new york.
5:12 pm
what is behind a little bit of the selloff? >> we do have a big fat decision tomorrow, perhaps investors are taking a pause. at one point the nasdaq was down far more than the dow and s&p 4 500.p the declines were being led by the chip stocks including intel. they have been down more than 1% following the decline a day earlier on the mobilized acquisition. intel recovered, but left broadcom and amd in its wake. paypal was down more than 1% having its worst day since the end of february after google said that there is a gmail app code will allow users to send money. a bit of competition. on the year, it is a different story. when we hop into the bloomberg on the top ink, white that is the s&p 500
5:13 pm
technology sector up about 11% on the year. in orange on the bottom, down 9%. tech is the top sector this year have -- being helped out by a big tech names. caroline: what is fascinating is the volatility. volatility is so low across the board. how is that playing into some of this tech ramp-up? >> it is amazing, the lack of volatility. the vix at record lows, but the nasdaq is even lower. it is the had a record low. we have another bloomberg chart. vix, andhe nasdaq 100 the s&p 500 bigs -- vix. not a lot of volatility for technology stocks. you could even say complacency. the nasa 100 is up about 11% on
5:14 pm
the year s&p 500 6%. ,the big tech stocks are outperforming. you are telling us how intel and paypal were down on the day. who are the out performers on the year? >> all the big technology names including apple, amazon, facebook, and google. those are some of the top tech stocks. one less chart on the bloomberg. -- last chart on the bloomberg. in pink on the bottom of the uprt, that is the s&p 500, about 5.5% on the year. facebook.up 25%, the big interest -- internet stocks are trading higher. this has to do with expectations about the president's potential tax cuts. it will be interesting to see how it plays out. caroline: i was checking out has been overbought
5:15 pm
for at least a couple of months. that's another one of my favorites abigail doolittle. bloomberg news markets reporr. coming up, corporate email traffic is moving to chat, and microsoft once in.-- wants in. this is bloomberg. ♪
5:16 pm
5:17 pm
caroline: microsoft is officially joining the chat world. on tuesday, the company rolled out the work pause collaboration -- workplace collaboration software. it is now widely available in 181 markets, and already has 50,000 office 365 customers trying it. microsoft is counting on integration to challenge the likes of slack and google hangouts for big, corporate customers. joining us from washington's
5:18 pm
brian good, the general manager of microsoft office 365. you are senior develop -- director of modern collaboration. talk to me about the collaboration i can do that using team. wewe are excited about what introduced. it is a test phase workspace in office 365, and it brings together the people, content, conversations teams need to get work done. we are excited about it. organizations already using it, can you give us numbers? where internationally is it being rolled out? >> great question. we have 50,000 organizations using it since we announced the preview in november. that really runs the gamut, from the small customer to the very large. we have customers across the europe, as well as into and even into africa and asia. we are impressed by the demand we have seen so far. i would say that some of the
5:19 pm
customers that have given us great feedback on it include people like accenture, alaska airlines, expedia, sage software, and a number of others.the customer demand and response has caroline:.impressive you mentioned expedia. we spoke to the senior director of i.t. for that business. he says they are using it, but rivalsing rivals like -- that do not seem to be phased out. do you think teams will push them out? >> today marks the general availability of team. many customers are looking at that to migrate employees from teams.tform onto this is a big moment for us. i will tell you what customers think they like about it is the deep application with office. integration with word, excel, powerpoint is a hub for teamwork. there's also a lot of
5:20 pm
compatibility with microsoft. we are excited about what we bring to the table and we think we have a compelling offer for customers. caroline: is that how you win out? is that the usp that you have such deeply integrated projects that they will go with what they know? >> i think customers are looking for one less app, one less window, wherever they can get away with it. we are looking for things that work together. that is both for the people using these applications as well as i.t. we think we have a great value proposition with office 365, really designed to be a universal toolkit for customers and address a broad range of needs they have across their company. caroline: do you think slack will exist in the next couple of years? >> i don't know. that's a good question. i do feel really good about what we have to offer and what we bring to the table. as iustomer response,
5:21 pm
said, has been really remarkable. it surpassed even my expectations. i'm excited for what the future holds with teams and office 365. caroline: you are working to integrate other businesses and companies that help with the employment element, like zenefits. is this about being an open-ended structure at the end of the day? >> absolutely. we are working with over 150 partners. what our customers expect is not just integration with microsoft, which is certainly important, but also being an open platform. that is why we had invested deeply, giving people the ability to customize their thatonment in teams here means working with a variety of people outside microsoft. did it take a slack to show the market was where it was that, to show the way in which microsoft needed to copy, or did you always have this in your mind? >> we have been working on microsoft teams now for several
5:22 pm
years. it is a response to customer demand. clearers told us loud and they were looking for a hub for teamwork. a place to come together, stay on the same page, and that is what we have delivered. it's not in response to any competitor, but it is demand from customers. -- greatit is a greet complement email. stilldern company requires emails. you still have to receive email from people in the organization and out i'd. as aok at microsoft teams complement to that, and the other tools to get work done. thank you so much for joining us on a very busy rollout day. now there are a lot of workplace collaboration tools, and one in particular has received a lot of hype. both microsoft teams and slack allowed companies to build, but
5:23 pm
they are slow to adopt them. why? host whoto our guest has done digging and great analysis. give us the stats. very few companies are adopting chatbots. >> is a lot of hype and numbers thrown around like 50,000 on facebook messenger already. but when you look at fortune 500 companies targeting consumers, only about 4% of those have chatbot, and only 13% are using that to have conversations with their customers. chatbots are what seems to be a person on the other end, but actually a computer able to respond in and immediately. what do you think was putting off companies adopting in the right manner and at the speed
5:24 pm
the hype might have dictated? >> it is hard. if you look at chatbots that are successful, they do very simple things. for example, if you look at domino's pizza, it allows me to check the status and order, order the same thing i ordered the last time. it doesn't let me flip through the menu and build a pizza. and lets me do something very simple. most of the chatbots ucr what we call forms -- the chatbots that you see are what we call forms. it is a very narrow conversation window. caroline: the common mistake is potentially companies being a bit too ambitious? >> a little bit too ambitious, and to optimistic about what the technology can do. we have the chatbot line. the stuff on the right-hand side that you can do today is easy and simple, and the stuff on the other side is harder to do. technologies will have to evolve.
5:25 pm
at the end of the day, you can't anticipate everything i'm going to say or how you are going to respond, so you have to teach machines how to learn and respond to humans. it is very hard to do. caroline: i may chief marketing officer -- if i'm a trace marketing officer at one of do i companies, where start grabbing the low hanging fruit if i wanted to get rolling on chatbots? >> the first thing to do is start. that's the first thing. you have to start. you can throw money at the problem and catch up in a few months with a few hundred thousand dollars. it will not be as easy to catch up here, because your firm has to teach the company how to learn and respond to consumers. that is the first thing. then i would look at consumers. are they even on the platforms? ?oes it make sense the next thing i would do is look at call logs and customer service and say, where is the low hanging fruit? what are the easily repeatable
5:26 pm
questions that consumers tend to ask? like what is my bank balance, what time is my flight going? those are simple to execute on. caroline: that was great analysis, forrester research vice president speaking with us. coming up, a bevy of startups to take the the public market. but could the companies looked alternate routes instead?this is bloomberg. ♪
5:27 pm
5:28 pm
5:29 pm
reporter: i'm alisa parenti. the netherlands hits the polls tomorrow for parliamentary elections being considered a bellwether for the future of
5:30 pm
populism. the far right candidate is running just behind the incumbent two-time prime minister. elections, head of polls in france and germany over the next six months. british prime minister theresa may says the u.k. is on track to exit the eu on the timetable seat -- she set out. she addressed the house of commons saying she will formally trigger article 50 to begin the exit. the meantime, british and scottish leaders traded barbs over scotland's desire to hold a second referendum on independence. the scottish minister nicola sturgeon says she intends to ask voters in 2018 or early 2019 if they want to leave the u.k. french presidential candidate into anas been charged investigation for taxpayer-funded jobs for his family. the chart has damaged his chances at winning the presidential election. thousands of public doctors in kenya have agreed to and a 100 a strike for better pay and overtime compensation.
5:31 pm
the strike has been blamed for dozens of deaths in the african nation. doctors and medical practitioners are expected to resume work on friday. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. it is just after 5:30 p.m. tuesday in new york, 8:30 a.m. wednesday morning in sydney. i'm joined by paul allen with a look at the markets. good morning. reporter: good morning. let's take a look at new zealand, the only market currently open. it is up a little right now, down a bit more than 1/10 of 1%. we are spending a week on the afx features posting a decline of 2/10 of 1%. we are keeping a close watch on the energy sector for a couple of reasons. energy stocks getting hammered again on wall street, and also here in australia prime minister malcolm turnbull will be meeting with oil and gas executives to
5:32 pm
boost prices. plenty of news happening. it might affect markets. the only press conference of the the china's national people's congress. we will be watching of any news. also u.s. secretary of state rex tillerson will be making his inp to asia, touching down tokyo this morning. also keep an eye on japanese industrial production coming up in a few hours. i'm paul allen on sydney. more fun -- more from "bloomberg technology," next. ♪ caroline: this is "bloomberg technology." i'm caroline hyde. back to the top story this hour. in the landscaper tech startup
5:33 pm
funding, we discussed a handful of software companiesare living in snap's -- in snap's footsteps. it is unclear whether other unicorns will follow. their shares continue to slide here at access to capital on the private market appears readily available, given airbnb closing a $1 billion round. joining us more -- for moore is bill malloy and mel murphy. us.k you for joining snowing in new york. see inhat do you everything that is spelled that way? >> from our way, it is just an amazing game. i think what the executive team has been able to do, starting on the small team, almost 60 team members is amazing. we are really making an investment in them as a team.the
5:34 pm
second thing is the market. the market for connected things continues to grow, and being able to have data layers on top of that that you can visualize and enterprises can use them to help run businesses better is something we can have a strong belief and conviction in. caroline: your business is all about giving inanimate objects a digital identity. millions of them. is the money to make sure it is billions of them? >> absolutely. if you think about the fact that there are about 3.5 trillion consumer products made and sold everything in the world, there is opportunity for everyone those he coming a digital thing. our mission is to manage as we can. caroline: what is your outlook for the internet of things in terms of the landscape, in terms of competition, in terms of the growth sector? big think if you look at it picture, there are interesting
5:35 pm
stats from the growth standpoint. in the next five years, there's close to half $1 trillion in revenue that will be produced from vendors selling in and around the internet of things. if you take that out 10 years from now, there are somewhere between 70 billion and 80 billion connected things. from our standpoint, being able , and within a team the market that is growing, that is something that we strongly believe in. i think you touched on competition. it is interesting. you have large players like ibm and accenture doing data aggregation all the way down to cisco's most recent acquisition. but iis competition, think of the market continues to grow, there is room for a number of different successful companies. caroline: it's interesting that one of your backers originally was cisco. likes of samsung. you have always had quite an international base of backers.
5:36 pm
how as it been as a u.k. based company in the brexit negotiations raising funding? >> i think we have always been a global organization. we offer it from the u.k. and here in new york. digitalin an evolving ecosystem, you have to start from a perspective looking at it globally. about half of the consumer products companies are based here in the u.s., so it is fundamentally are centric on the u.s. as a driver of the digital ecosystem. capitalize, a substantial proportion of the world venture capital is based in the u.s. we have been that way from go, and that has been our focus. caroline: bill, talk to me about where you see the funding situation right now. 's private capital still a wash of plenty? i know you and sway ventures got ground. uber is money still coming into big private companies or are they looking to go public?
5:37 pm
>> i think it is company by company. independent on where we are as a cycle, great companies are still able to get access to capital. it is going back to the company by company. we have seen companies like snap that have gone public. their stock has been on the decline. we will see where it goes. there are other great companies that i think being able to secure $30 million in a private market transaction with great investors is an accomplishment. i think we will continue to see more of that from companies around the world. caroline: what is the outlook here? for cisco toting come swooping in and buying you at the last minute when you are looking to go public? becoming aisting on bigger player and potentially going public in a few years? >> i think as an entrepreneur, one always has to be open-minded. however, we are building a plan that is about a scalable business moving into
5:38 pm
and accessing extremely large market opportunities at the world's products. we will follow that journey and see where it takes us. i think there is a high scale business opportunity focused on the execution. caroline: talking about journeys, i have to ask you about what you have been looking at with some of your companies like uber, and the debacle they've had in terms of pr. is that something that makes you worry about your investment? has not hadid, uber a great 2017 to say the least. i can count the things that have gone wrong this year. i think we take them seriously as investors, and i know uber does. we stand behind the company and what they are doing. right now, it is about how they react to the different
5:39 pm
components going on within their business and outside the business. i think long-term we still fundamentally believe in them as a great company that will continue to grow. we hope that they continue to take the right actions to do it they can -- what they can from everything they've done in the last few months. caroline: i want to thank both of you from walking in in the snow and the cold. thank you very much, a great conversation with the evrythng cofounder and ceo, and sway ventures founding partner. of heart. after pulling the plug on a $230 million health care orientated fund in december, the former ceo of alphabet venture capitalist arm will present a smaller fun. emily chang spoke with him in december where he explained why he scrapped the plans. >> i did this crazy thing called changing my mind.
5:40 pm
it's wild, but i did it. i left hundreds of millions of dollars behind, but i did it because i feel like there are a lot of venture funds right now in the valley. every couple days i see new announcements. i felt like after 10 years in the business there might be other ways to have a bigger impact. caroline: changed his mind again. his new fund will have the same focus on buyer tech and health care stocks and is expected to close later this month or early april. coming up, toshiba is considering a big move to improve its daughter -- bottom line as it grapples with massive write-downs.we will explain that and why, next. and a reminder of our interactive tv function. find it at tv on the bloomberg. you can watch live and see previous interviews and dive into any securities or functions we talk about. become part of the conversation by sending instant messages.
5:41 pm
this is for bloomberg subscribers only. this is bloomberg. ♪
5:42 pm
5:43 pm
caroline: in the latest tech revolving door, apple add something else to its team. they filed a brief in support of apple and argued against the fbi's demand to unlock the shooters iphones. he's known as nerve gas in the hacker community. now he's known for a company as secretive as apple. his account has been disabled. just announced, the linkedin cofounder reid hoffman will join
5:44 pm
microsoft's board. this comes three months after they acquired the network. the board has up to 12 members. news out of collaborate to she base considering the sale of a majority stake in westinghouse majestic nuclear operations amid massive write-downs. deletede the approval to the release of third-quarter earnings until april 11. westinghouse, would -- which could be written down by $6.2 billion, has been at the center of toshiba's problems. it is now seeking to sell its memory chip unit. let's go to cory johnson. painful, painful. missing a second deadline in terms of the earnings report. it is an amazing story. it starts with stephen a screen -- steve mcqueen. ofplayed the true life story
5:45 pm
alvin, who had an electro power -- plant in georgia. acquired by toshiba a few years ago. with it, they acquired this problem. the problem was the way they reported it. the cost of the plant has toraled from $4.4 billion, $5.8 billion. they are building two reactors. the timeline is gone all the way to 2020. the accounting over this has apparently been screwed up somewhere along the way, whether intentional or not. they first announced the accounting problem about a year ago. stocks fell dramatically. as a result, toshiba is still trying to uncover what the problems are and how far back they go. they told us today they figured
5:46 pm
out the fourth quarter, but they don't know how it affects the previous three quarters. they have to go back and do that and they think it will take until april. caroline: quite amazing. meanwhile, they need to study their own ship to certain extent. they need to dispose assets and bring in money. the memory chip is on the chopping board. cory: the memory chip business is maybe the best business of what toshiba holds these days. is the one they might get the most for, but it's the one they don't want to sell. westinghouse, the nuclear business, the way to contract work as they have fixed price plus 10% cost. the problem is the costs have been rising. westinghouse has been in a battle with authorities in georgia about how much they can jack up the price.interestingly , one of the most expensive pieces of the power plant was the cybersecurity's protocol. they were involved in a dispute
5:47 pm
resolution with georgia power and light where they went through and said you cannot increase the cost any more about the summer, including cybersecurity. cybersecurity was singled out as an expensive part of this. it is really an interesting story. -- if they ares going to take on such a snakes, wouldof it be chinese or japanese buyers? cory: there are thoughts korean companies could be is was be hard to get work in the u.s. for nuclear power points. there are a lot of companies who could be willing to take this on. as they encounter more problems, it is a tough business. when they acquired sony, it was disastrous. could we be waving goodbye to toshiba as a technology business? what more is there other than the memory chips? cory: fundamentally they have to
5:48 pm
figure out where the problems are. for them to make any decisions about what to sell and when, it is a requirement they have to figure out after they figure out how deep the problem is. the other problem is they not only made price guarantees but they made a grantee about the credit rating -- during key about the credit rating. if it is lower they would have to secure additional credit just to keep doing the work they are already in. they really are in a tangled mess. only you can bring in steve mcqueen and the technology behind nuclear. we need you here on these programs. thank you. now a program note. on wednesday we will have full coverage of the fed decision along with janet yellen's news conference here on bloomberg television and radio. coverage begins at 1 p.m. new york time. coming up, netflix has a new strategy. how the likes of will smith, brad pitt, tilda swinton and martin scorsese are joining
5:49 pm
forces. this is bloomberg. ♪
5:50 pm
5:51 pm
sho amazon is trying to attract shoppers from china. this is part of an effort to sell more merchandise to chinese shoppers wherever they are across asia. amazon rolled out a simplified chinese language version of the website last year to cater to booming demand from everything from japanese music, to make up. there are more than $6 billion -- 6 billion in circulation, which rivals the legs of these up, and mastercard. netflix is doubling down on plans to shake up the movie industry. the world's largest pay video service will release about 30 original films ranging from micro-budget pictures to lavish hollywood productions. most majorer than studios. not to mention television
5:52 pm
offerings, netflix will spend more than $6 billion on tv and movies. anding us is lucas shaw, julia, vice president from forrester research. it is a brilliant story currently out. i heard people to go see it on the terminal. big names, big budgets. tell us about why netflix is focusing on the film industry. goal is to be the most popular online entertainment service in the world. if you rewind four years ago, it was primarily through other people's tv shows, products it had licensed from them. you go to netflix if you wanted to catch up on something you had heard about but did not have time to see when it was in theaters or tv. then, they shifted into funding their own tv shows because that's what people spend the majority of time on netflix doing. all the while, movies are still a popular type of programming. once they got into their groove
5:53 pm
with tv shows, they are now moving forcefully into the movie business. you will see them released a lot of their biggest efforts this year. caroline: you talk about in your story the $90 million being spent on a movie focusing on will smith. that got brad pitt and tilde slant-in -- and tilda swinton lined up for a comedy. what are they not doing that perhaps amazon is doing? not allowing it to put it in theaters, is that putting up hollywood? releasedy movies get these days is that the theater owners get an exclusive period where movies are only in they can and later on be sold on itunes or appear on a streaming service. there are some movies that appear the same day at home, but they tend to be relatively small budget, independent films. for comic book movies, you have to go to the theater for a long
5:54 pm
time. movie theaters want to condense the window but they are still respecting that theater owners need people to show up in the first couple weeks. amazon has also respected the owners' desires, and has partnered with distributed -- distributors.a movie like "manchester by the sea ," was in theaters for a long time. i remember checking a month ago on amazon and it still wasn't there. netflix is all about people using netflix. they don't really care about the business model. they want movies to be in theaters and on efforts at the same time. caroline: julie is an analyst looking at netflix. is this a wise place to spend cash? >> i do believe so. if we look at the reasons consumer cut the cord, original content and attraction to the content is one of the top five reasons. according to forrester research, we see the number of people who have cut the cord has doubled in the past three years.
5:55 pm
the people who are interested has also doubled in the past few years. caroline: taking on hollywood in this way with a $19 million budget movie starring will smith, is that the right way to go? will we not want to go to theaters? >> i think it is a very dated model that some of the film industry has nla -- in la. consumers have more than three connected devices on average. i want to watch it on my tablet, laptop, and smartphone. companies like netflix have adapted to what consumers want much faster than the traditional industries have. caroline: let's go back to lucas. you have done some reporting also about some of the industry veterans that netflix has onboard. can you tell us about it? >> just today shortly after the story ran, they announced they had hired a guy who is a very
5:56 pm
experienced and capable producer. he made lots of comedies and romantic comedies. he had a production company based at universal pictures. he previously was an executive at universal. he's someone who has been around hollywood for a few decades and he is going to be charged with trying to bring in even more talent for netflix. caroline: we will see how that continues to go. brilliant reporting, thank you. julie from forrester research and my guest host of the hour, wonderful to have you with us. that does it for this edition of "bloomberg technology." on wednesday, we will speak with the founder of coastal avengers. this is bloomberg. ♪
5:57 pm
5:58 pm
5:59 pm
6:00 pm
♪announcer : from our studios in new york city, this is "charlie rose." good evening, i'm robert costa's filling in for charlie rose. david brooks is here. he has been an op-ed columnist for the new york times since 2003.his writings spend the world of politics, culture, and social social issues. i am pleased that david brooks joining me today. david: good to be with you. listening -- wishing charlie the best. bob:


info Stream Only

Uploaded by TV Archive on