tv Bloomberg Technology Bloomberg April 17, 2019 11:00pm-12:00am EDT
emily: i am emily chang in san francisco and this is "bloomberg technology." coming up, the tech ipo boom rolls on. pinterest and zoom video preparing for their trading debut, but will investors hit the brakes or move full speed ahead after lyft does lackluster debut? plus, there could be implications for the 5g race. will the iphone maker now have an upper hand bringing a 5g
device to market? foxconn founder terry gou announced he is running for president of taiwan, saying he is following the call from a chinese sea goddess. if he wins, where does that leave his company? but first, to our top story, two more tech unicorns are heading to the public market thursday, social media discovery company pinterest and videoconferencing platform zoom, both expected to price their shares on wednesday. joining a rush of tech companies slated to go public this year. according to the wall street journal, pinterest is targeting $19 a share, $2 above the high end of the range, but unlike other big names making their trading debut, pinterest and zoom are burning through less cash. pinterest could see revenue more than triple by 2022, meantime zoom is a rare type of unicorn, a profitable one. joining us to discuss is rhett wallace and bloomberg intelligence senior analyst chandra law.
rett, what are the prospects for pinterest and zoom as you see them? is something we don't see often, a company that has eps, earnings-per-share. that is good, but it also has fabulous growth and is already at scale. usually when we see companies with this growth rate, they are small. everything we see and hear when we talk to people as zoom is it is going to be a rocket and will price above its range and trade way up tomorrow. as far as pinterest is concerned, it is fine, great. our score was above average when you compare it to snap and look at as loss ratio. his is on its way to break using. it has user growth. it already has a scaled audience, so that deal is also in fine shape and will price at or above the range. emily: that said, pinterest is doing a flat round. it was aiming for evaluation below what it raised in the
private market. is that smart? >> given what we saw happening with lyft and if you look at the history of ipo's, the first six months, the first days of craziness, has been consistent. at least they are setting their expectations in line with what they can deliver on growth. you look at the growth prospects of this company, if they are able to jump over these near-term hurdles that they have, they could triple revenues in the next four years. emily: what are the near-term hurdles? >> there are three, basically. one is how they scale their revenue right now. self-serve platform, the automated buying platform they need to scale revenues quickly, is still nascent. it depends on sales chasing large advertisers. it will take about a year to transition into that. snap already has. then you have google indexing key landing pages for pinterest. that affects user growth. it happened last year, but that might play a role this year. the main thing for pinterest is
the average earning for users is about $3, compared to $8 for twitter. there is a lot of room to take the purchase intent that buyers have an push advertising in front of retail audiences. emily: pinterest has interestingly been trying to distance themselves from social media. is it like social commerce discovery? what bucket would you put this in? rett: the way i would define it is social requires somebody else on the other end of the network to interact with you, and you can interact with pinterest without that. it is a way to interact with the world as opposed to other people, so i think that comparison is actually fair, the content does not come from other users, it comes from the internet at large. obviously for all kinds of reasons, it's obvious why somebody would not want to be called a social network at this point in 2019, so that also makes sense. emily: there are risks around privacy. is that a concern for pinterest, misinformation, an ad-based
network which has may a different incentive structure? >> as the point was made, because the content is not user generated per se, everybody is just making a wish list, things they would love to buy down the line. if you look at the searches on the platform, which is going to become a key metric for the company, most of them are unbranded, so they don't know which brand to buy. you marry this repository of things i would love to buy to brands that would love to sell to them and that creates a unique story where it is more about user engagement, less about user growth and the metric would be sustainable because of that perspective. emily: let's talk a little bit more about zoom. who are their main competitors? you think about legacy players like cisco, polycom. who is zoom potentially unseating here? rett: that is one of the reasons
zoom scored as highly as they did with us. from the perspective of new companies, as opposed to the old cisco platforms, they kind of own the space. zoom meetings are a thing. it is a little bit like ubering, i will send a zoom invite. they have taken it up like skype did. one thing we like about them is they seem to have the category sort of to themselves. as far as the business is concerned, we think it comps to docusign more clearly. it will be a little more expensive, but the growth and profitability make that make sense. you should have the space sort of to yourself, unless one of the big guys like google gives this product away. emily: both companies are looking at maybe a $10 billion, $12 billion valuation. do you think there will be competition between them on the day? are investors going to be attracted to one or the other, could there be some sort of split? rett: it seems like investors like to make money, so there is room to buy both. again, everything we are hearing is these deals are both in great
very, that zoom will trade well, but investors basically like the pinterest story. this came up. pinterest is really priced right. when you look at what pinterest is doing relative to what snap did, pinterest is raising half as much money with twice as much revenue, so it is a very attractive valuation story and the trading dynamics should be good. emily: it may appear to be priced right. we saw lyft go above its pricing range as well on the initial trading day, huge first day pop, and now shares are below their ipo price, significantly below. could we see the same thing happen with pinterest? where there is a perception that the price is right, but a few days into it, investors change their mind, or there is a lot of short interest, or something else. jitendra: absolutely. if you have seen the history of ipo's, this happens to even profitable companies, facebook, alibaba. it is more about supply and demand of stock.
yes, volatility could happen. but if they are able to jump through this, deliver good results in the interim, they can sustain the high valuation. emily: rett, you were one of the first analysts who came out critical of the numbers lyft was putting out, saying there was not enough to make a complete financial model. now that you see what uber has put out, do you think that uber will suffer from the same problems as lyft, or do you think it is a completely different story? rett: what lyft did was, to some people, kind of offensive. when you are losing $2 million revenue, you have an obligation to explain to investors how your profitability story is going to improve. uber is losing $3 billion on $11 billion in revenue, and it is a much bigger company. i think their disclosure was better than what lyft put forward. the detailed metrics are more significant than what we heard from lyft. they broke out bikes and
scooters, for example, about other things. but i think price will be a very important factor in how the uber deal is perceived. emily: very interesting. we will be watching that. thank you both. investors are cheering intel's decision to hang up on the 5g smartphone modem business, sending shares toward their highest level since the.com boom of apple's settlement with 2000. lost theirans intel one significant customer in the 5g smartphone market, apple. intel says it will wind down its multibillion-dollar bet on 5g, but it will look at whether existing chips and 5g modems can be used in personal computers. this is going to be a costly tet for intel, so investors cheering they don't have to spend that high price. coming up, shares of qualcomm surging after their settlement with apple. what does it mean for the rest of the chip industry, next. and if you like bloomberg news, you can check us out on the radio, listen on the bloomberg
emily: qualcomm shares jumped clover percent, continuing a two day rally of about 40% after announcing a settlement with apple and signing a deal for warranties -- for royalties and chipsets to end a bitter dispute. the agreement could be a big deal for the entire chip sector, raising hopes of a 5g iphone in 2020. joining us to discuss, an attorney from boston, an analyst from sanford bernstein. of course, this leads to many questions about what happens
after six years, after the term of this agreement, and also what does it mean for the rest of the chip industry, given that this licensing model has been frustrating not just for apple but for other manufacturers? >> i think that is the takeaway for us from this, more than the monetary settlement. it is the fact that qualcomm's business model as an property license is validated and the fact it's ip can now be monetized well beyond the value of the chipset itself through the value of the device. when you get somebody like apple to validate that business model, i think that is a pretty strong statement. that is the take away from this, even beyond the economics of it. in the grand scheme of things, we believe apple is on its way to build its own modem. the question is how far will that be, what will the economics
of that be, and what will the royalty structure be after that. et cetera that is to be determined. we always thought intel was a placeholder for apple and not with 5g, qualcomm regains its place back in the iphone. but in the long run, it is going to be an apple cellular-based chip in there. emily: stacy, what is your take on how good of a deal this is in the short-term and the long-term? >> so, look, this is a stock that has been viewed as uninvestable by most investors for going on five years now. and if you actually look, the stock even year to date is only up in line and after five years it is down. let me no one other semiconductor stock that is down over the last five years. this is huge in the sense that with the legal overhang gone, the fundamental investors may be willing to do some work on it now, which has not been true for many years. at the same time, there's a lot
we do not know yet. the company guided about two dollars eventually in upside from this deal. we don't know yet how that two dollars in earnings splits out between licensing and chips. it seems like they have validated the model in terms of royalties on the device, but we do not know what the actual dollar royalty is. i guess we will find out. and to the point i heard earlier, the chipset agreement, how long does it stay with qualcomm? the licensing agreement is six years plus maybe a two year extension. with chipset, they were less specific, just said it is a multi-year. so that brings up the question of what apple's plan may be three years out. obviously, intel is not around right now, but in three years the overall competitive environment will probably be tougher than it is now, and we will see how far along apple is on their own efforts at that point. for now, if we have a few years run my, investors may want to buy this. my guess is they will continue
to grind up into earnings, which is in a week or two, and then qualcomm will talk and we will see what they say and what they don't and we will see what the stock goes from there. emily: apple has been focusing on making its own chips. what do you think apple's game plan could be longer-term? anand: if you look at the value of the chips within the iphone, the application processor, which is homemade, if you look at the motion core processor, homemade. the wi-fi chip is still third party. which is both from an important standpoint a very high and reasonably high high dollar value. that is also externally sourced. i think to some degree apple wants to control the elements that are high intellectual property and also determine the cadence with which it can launch critical new features in the iphone, but at the same time it does not want to necessarily make commodity chips or have any control over that when it
can be quite easily and cheaply purchased from third parties. that is the weighing decision apple might used to determine whether it wants to make chips in-house or it wants to source it from third parties. i think control and cost are key elements of that. about you know, stacy makes a great point, which is that just because the deal is done and qualcomm becomes an investable name again, it is not like all the problems in the underlying market are suddenly going to vanish. right now hunky-dory in that market. it might be hitting a sort of threshold of unit growth and sizing and saturation, et cetera, and qualcomm is disproportionate in the market, as much as they tried to expand their presence in other devices. so there is good with the bad. i think that this provides an
incredible sense of relief to investors, but it does not take away all the issues with the underlying market. stacy, i find it curious that qualcomm still has such a stronghold hold on 5g technology. do you expect that to continue, that there will be no other company that can do it as well as qualcomm? stacy: even saying there are other companies that can do 5g -- we have samsung shipping modems, huawei, intel obviously exited, the last in a long line
of folks to exit. but qualcomm is in the lead. they were even in the lead on 4g. about you have to remember, like on 4g, things were very good at the beginning of the cycle for a as years, then it collapsed the competition became good enough. 5g, we may see something similar. it is probably a few years. i don't know if anybody will ever be better than qualcomm, but there is always a line that is good enough. and there is one other difference between 4g and 5g. with 4g, 4g was basically the reason to go out and buy a smart phone, so not only do we get a good amount of asp upside as that transition happened, but we also got a ton of unit growth. with 5g, i don't know that we get that. the smartphone market at this point is relatively saturated, so i have a feeling 5g will be more of a replacement market then 4g wise. the upset for a is for chipset asp's, and chips and rather than tons of unit growth. once we have apple back in the mix and the baseline is set, i don't know if we get the kind of unit growth we saw over the last cycle. that is one difference. emily: ok, stacy rasgon and our own anand.
furthermore, bloomberg tech's mark bergen, who has been reporting on this story. it is interesting the indian government has intervened here, whereas other governments have not, in an app that has been concerning to a lot of people because, you know, you have got a lot of children on this app, performing, lip-synching, and concerns about sexual predators. mark: it is interesting on multiple levels. in many ways -- we have done some great reporting out of asia , that india, like other countries in asia, are adopting more of a chinese model of regulating the internet, so becoming more severe. some would call it draconian. and they are going after india, with fairly conservative politicians, and going after a chinese company right now. who has made a big push. they claim to have 120 million monthly active losers -- monthly active users, growing like gang busters. a company that has done well outside of china. they have a huge and growing presence also in the u.s. and this is an a.i. company that prides itself on its ability to
take down content quickly. bytedance has said the case is still ongoing and they are optimistic about an outcome that will be well-received by 120 million active users in india. i mean, the concerns are really disturbing concerns about dangerous to children, claims about foreign, it -- claims about porn, exposure to sexual predators. how is this different from youtube, where a parent can upload a video of their child and who knows what happens to it? mark: they say that no kids under 13 watch their videos, according to the terms of service. right now, musically, the app that became tiktok, had a record fine from the ftc around a collection around privacy concerns. there is a drumbeat and the same advocacy groups are asking to look at youtube in a similar way. emily: i also want to ask you about the notre dame situation. obviously, a devastating story watching notre dame getting
essentially burned out. and in the middle of that, on youtube, this text box pops up that labels the burning of notre dame as 9/11. what happened? anand: -- mark: youtube said it was an algorithmic wrong call, interesting phrasing. but the best we can decipher is the image recognition technology saw a picture of a burning façade and the software determined it looked like an image of 9/11. emily: but there could be a lot of burning façades. mark: totally. there is a lot of cases where youtube over the years has been hammered for pushing conspiracy theories, like 9/11 was an inside job, so in this case this is a precaution they are taking. it goes back to the point of tiktok. bytedance is a country that has prided itself on artificial intelligence. google is the world's leading a.i. company, but it is not perfect at solving this problem.
both companies will point to their scale as saying we cannot have humans look at this. youtube said this morning, 500 hours uploaded a minute, so even if you have humans looking at it -- this is an interesting case where it is clearly a breaking news event, you would think someone in the country would say, let's look at all videos around the notre dame fire, because it is drawing attention. but they are still relying on machines and software right now. emily: and having to find a balance between what machines can do and what humans can and should do. mark bergen, who covers youtube for us, thank you so much for that update. coming up, netflix reported an underwhelming second-quarter forecast, but ceo reed hastings says he is confident new services from disney and apple will not slow their momentum. we will discuss. bloomberg tech is livestreaming on twitter. you can follow our global news network tictoc on twitter. this is bloomberg. ♪
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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. emily: this is "bloomberg technology." i'm emily chang in san francisco. netflix may be paying the price for raising the price. the streaming service predicts it will add just 5 million new customers in the current quarter, well short of wall street forecasts. they have blamed the slowdown on raising prices in the u.s. and parts of europe. and there is incoming competition from disney, apple, and warner media. joining us is nick nelson in los angeles. he is the former head of product creative at netflix. and also with us, our guest from
"bloomberg intelligence." 24 hours later, what are your thoughts on the q2 forecast combined with comments from reed hastings that momentum is phenomenal, and this coming competition will not be much of a competition because there is already competition. >> absolutely. yes, the subscriber guidance was slightly disappointing, but factor in the seasonality, factor in the churn, as well as the fact there is a limited content slate in q2, i do not think investors have much to worry about. netflix is still on pace for a record year in terms of subscriber additions, and that is because of the strength of the slate in the second half, and you will see a lot of their megahits returning and coming back to the service. in terms of competition, netflix pretty much downplayed the threat of disney plus, of warner
media, and all these other new services that will enter the market. what they said was thanks to this global shift in streaming, what we see is the internet, the buy for internet television is growing at an exploding pace and netflix is any position to grab a bigger share of the market. emily: let's take a listen to reed hastings' exact words on the competition. this is from the conference call. reed: we only win 2% of downloading on mobile. like, 98% of the time, people 90% aredoing netflix, not watching netflix. so there is a ton of competition out there. disney and apple have a little bit more, but frankly i doubt it will be material. emily: as someone who used to work at netflix, do you buy that argument? nick: i do. because of internet access ability across the world as well
as growth in population, and overall just consumption of content, the pie is growing and netflix is doing a good job of capitalizing on some of that, entrants in the market, i think it is far from saturated, so there is room to grow. emily: how much competition do you think disney plus, which has a huge existing library dating back decades, will actually be for netflix? nick: in terms of the content library that disney has amassed, it is definitely competitive. it is also legacy content, so it is not just about the catalog you have to offer, but the content you have continually coming to the service. as mentioned, the content slate for netflix is stronger in the second half of the year. i think continually having the content added on top of the value already produced by your library is supercritical as well. i think that disney is obviously very good at continuing to have a great drip of strong content and that will provide a lot of competition to netflix in the overall marketplace.
emily: on the call, reed hastings, as well as other executives, indicated that they were looking at a lower tier of pricing. disney will be $6.99 a month. apple, we do not know the price yet. but how will a lower tier impact the company? when get new subscribers for cannibalize the existing service? geeta: i think it will work well in emerging markets where you have more mobile-only subscribers. one of the markets they are looking to make a big expansion into is india, where you will have over one billion smartphones in the next three or four years. and the real question is, how do they capitalize on the really explosive growth of broadband in that market? right now, they have made a big bet on streaming in india. they are creating wonderful content.
disney is actually quite formidable in india because it has about 300 million users on their other platform it acquired with fox. so it makes sense for them to go after, like, maybe introduce a $3 monthly plan in these emerging markets. emily: i am curious for your thoughts on content. netflix has put billions into original content. much of disney's original content is based on existing hit franchises and movies, like star wars films, for example. there is some completely original content, but it is often based on these legacies that have performed well. is that really going to serve disney well going forward, given that the hit shows today are completely fresh, whether it is "game of thrones," or "the big bang theory?" nick: that is an obstacle for disney to overcome. if you look at netflix's content spin today, given the
competitive landscape, i think what i would characterize as overspend. they are spending forward for the consumer face they will have, as well as spending to build brands and contents that do not exist. so disney has a competitive milestone to overcome in terms of data collection to help inform what they should produce, what content they should be buying, and what brands they should be building so they can remain competitive. emily: but do you likewise think netflix can keep up? their hit shows, whether it is "stranger things" or "orange is the new black," they are not as big as "game of thrones." netbooks is making almost too much. nick: i think of it like a hit and non-hit ratio. right now, netflix does not have to have everything do really well, because they are rapidly expanding, they are getting global subscribers, so they have some leeway right now.
but one of the biggest things that will define their success over time is making the ratio improve so more shows are hits, are brand building. one thing to consider is something you could characterize as a miss. they can target small groups of users all over the globe, so they have a little bit more variance they can absorb right now as they learn to be able to create better content over time. right, nic nelson, ownzones media, formerly netflix. and geetha. this race is a fun one to watch. the billionaire founder of the company that assembles iphones plans to run for president of taiwan. foxconn's terry gou will see the nomination of the opposition party. he says a mythical sea goddess encouraged him to come forward to support peace with china, but what would it mean for foxconn?
we have dennis wong, from sam houston university, joining us from new york. and in the studio, bloomberg tech senior executive editor brad stone. so, he is clearly positioning himself as pro-china, even with this initial announcement. what does this mean for foxconn? >> you do not have to consult the sea goddess. it is probably not great. he is a legendary business figure, arrogant, swaggering, impetuous, controlling, really synonymous with foxconn, that makes the devices we all hold in our pockets. you know, everything i know about foxconn i have learned from our taiwan reporter, and she has written about how he has destabilized the succession question. if something like what happened suicides at the chinese factories, you need a terry gou to leave foxconn to do that.
but then, on the other hand, i think of donald trump, how he is not day-to-day, but he has sat in the shadows running an empire. i do not think guo would completely give up his control of foxconn. >> i want to mention it is not crazy to have, like, a sea goddess to support him, because given the taiwanese society, it is a spiritual root for chinese society, so it is an interesting move for him to make an announcement like that. emily: talk about the strategy, because obviously some people will like he is pro-china, but it could be a disadvantage given the fragility of that relationship. dennis: indeed. there are advantages and disadvantages. for taiwanese voters, terry gou is actually a figure that indicates someone capable of taking care of taiwan's economic growth. other people expect him to provide a real solution for the current taiwan economic
stagnation. so to a lot of supporters, it does not matter if terry gou is very pro-china or not. they look at the pragmatic way -- they look at him as a very pragmatic businessman who can provide solutions. but, of course, the disadvantage is the is too close to china and there is concern about his relations with china. whether terry gou really got elected as a president, whether he would be a competent ormunicator and negotiator, would he become subordinate to china. emily: brad, he does have to win in the primaries, but if he leads, what would that mean for apple? brad: apple is foxconn's largest client. china is the third-largest market for apple. very important. when they had to change their sales estimates, revenue estimates in the first quarter,
it was because of a shortfall in china. so terry gou moving to the leader of taiwan, that could have all sorts of implications, good in terms of apple's access to china, perhaps bad if there his sensitivity around the question of taiwanese independence. if that makes it back in the silicon valley, where employees are paying attention to these political issues. emily: given the other competitors, how do you expect this campaign to play out? dennis: the current ruling party, dpp, is experiencing low popularity due to, some would argue, a poor performance. they do have strengths in terms of improving relationships between the u.s. and taiwan. in recent years, we have seen this strengthen in terms of the congress bill that passed, the taiwan -- the asian reassurance initiative and the taiwan travel act is definitely an improvement
between taiwan and the u.s. however, the economic growth, as i mentioned, the economic stagnation is hurting the ruling party. so i would say the current political climate, the situation, it is very -- it is not very good. it does not look bright for the ruling party. so that is also the reason why there are so many competitors, or candidates, from the opposition party who are willing to run for the 2020 election. emily: fascinating. professor dennis wong and brad stone. coming up, a breakthrough in modern medicine. an experimental gene therapy has cured eight infants with the so-called bubble boy disease. we will bring you all of the details, next. this is bloomberg. ♪
emily: an experimental gene therapy has cured eight infants with the so-called bubble boy disease. the immune system deficiency named for the isolation that affected children were once kept in. researchers in memphis developed a one-time treatment to correct the defect and were able to build fully functioning immune systems in these infants. joining us to discuss is rick shine, who worked on this story. rick, everybody loves a medical breakthrough. what exactly happened here? rick: right. you know, it is a great, upbeat story in a time when the news is not so upbeat these days. some researchers at st. jude's research hospital came up with a
very unique and new way to treat kids, almost entirely boys, who have this immune deficiency. this was something that was tried with some success 20 years ago or so by some companies and research institutes in europe, but those children back then always developed leukemia. now, with a new kind of system that st. jude's and a company that is licensing the technology hopes to use, leukemia is no longer a worry. emily: i am looking at the chart of mustang bio, which was involved in the treatment for this disease. shares up more than 180% right now, more than 200% after hours. you know, these young boys have already been released from their isolation, so at this point this seems to be failsafe.
what does this mean for this company and the industry? rick: it is very promising for the company. the thing to remember is, you know, the news today is based on the results of eight very successful treatment results of kids that were treated by st. jude. now, the company is planning on doing additional research and testing in the hopes of getting fairly speedy fda approval. whether that is going to happen or not, or how long that will take, is still to be determined, of course, but that said, you know, the results are extremely positive. the company is extremely enthusiastic that this will have a good result for them in terms of fda approval. emily: it is great to hear some good news, certainly miraculous
news for these little boys and their parents. rick, thank you so much. coming up, electric cars taking china by storm. there are over 486 ev manufacturers registered in china, more than triple the number two years ago. and their sales are projected to reach a record 1.6 million units this year. but is the boom sustainable? tom mackenzie spoke with the founder of neo at the shanghai auto show. [speaking foreign language] translator: i have confidence in the chinese automobile market in the long term, but i do not expect sales to grow like they did in the past. in general, the sale of new cars will be lower, but the intelligent ev car market will be the fastest-growing segment.
tom: they have rolled back some of the subsidies, and that has hurt some in the electric vehicle sector. what do you think the impact is you are seeing and what is the longer-term consequence of this? william: [speaking foreign language] translator: the subsidies have decreased, but they are still there. on the other hand, the federal tax rates in china are good for the ev market. there are benefits of using ev cars, such as lower consumption taxes, a beneficial license plate policy, and none of the restrictions like those in shanghai and shenzhen. they will prove to be more sustainable in the long-term. tom: what is the biggest hurdle facing neo at this stage in the facing neo at this stage in the business's development?
william: how to enhance operational efficiency, how to increase gross profit, and how to increase our sales have always been challenges. in addition, there is a challenge of how to raise funds to pay for more r&d. those are things our team needs to be focused on. tom: there is expectation that there will be a significant shakeout of the electric vehicle startups in china, how deep do you think that shakeout goes? how many companies will have to be closing up? william: i believe there will be some companies than can survive, just like startups in other areas, there will not be success for every single company, which is natural. tom: tesla is expected to start producing vehicles in 2020 in shanghai. does it change your strategy? william: [speaking foreign language] translator: we will not change our strategy based on what tesla is doing in china. the auto market is huge. tesla is a great company and it has many good ideas to help advance the ev industry. we certainly have our good ideas
too. we would like to move forward in the ev market together. emily: bloomberg's tom mackenzie with nio's founder william li. coming up, he is one of the most powerful people in hollywood. our exclusive conversation with jeffrey katzenberg on the global streaming landscape. the former dreamworks ceo. ♪
emily: to the future of video streaming with new offerings from powerhouses like apple and disney, we spoke to someone who has decades of experience in the entertainment industry. in the latest episode of "studio 1.0," i sat down with former dreamworks ceo jeffrey katzenberg about his new streaming service and his storied hollywood career. jeff: i think it is early in the game to be calling winners and losers in something that is in almost cataclysmic transformation, where virtually
every other day or week there is something that is a tectonic shifting of the plates. it is a little bit hard when you are in the center of that storm, to have perspective on it. who will be the winners? the winners will be the ones with the biggest and best businesses, you know, and have the greatest leaders. and so you cannot help but look at and admire what bob iger has done. emily: i was going to say, is disney one of those companies? jeff: 100%. he has made one of the most ambitious bets anybody in modern business has ever made. they are the number one company today as an entertainment media company. without peers. they have the best franchises and ip. he decides that his -- the future of that enterprise, of which he is the steward at the moment, he actually has a good deal of humility about it.
you realizes he's got the baton, he is going to run with it, and he is going to pass it at some point. and he decided after 12 of the most spectacular years as ceo, he has decided to push all the chips in to say for this company to have as great a future as it has a past, he has to transform it. bet on bob iger. no problem. emily: would you bet on reed hastings? jeff: 100%. and i would bet on steve burke and brian roberts. i would bet on at&t. these are phenomenal enterprises, great leadership. they are all going to be, in some fashion or form, it is not clear what it is yet, but they will all come out with some win. emily: do you think content is still king when there is so much content? jeff: no. emily: what makes a king or queen?
wherei grew up in an era content was king. content is king maker, but clearly today platform is the king. and i mean netflix is a platform. its content has made that platform successful. but the platform itself is worth $200 billion, so the value of that enterprise is far greater than the content, but without that content they would not be king. emily: my conversation with quibi founder jeffrey katzenberg. you can watch powerful conversation tonight on bloomberg "studio 1.0." that does it for this edition of "bloomberg technology." of course, we are always live on twitter. follow our global news breaking network, tictoc, on twitter. this is bloomberg. ♪
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