tv Bloomberg Technology Bloomberg March 5, 2019 11:00pm-12:00am EST
emily: i'm emily chang in new york. this is bloomberg technology. listening in. and aid to a top republican controversialls a monitoring program quietly shut down. what does it mean for data privacy? teslas blind side. elon musk. many employees by surprise when he announced last week the carmaker would shutter most of its stores and moves sales online as shares of tesla faulted her lowest levels since october.
google is denying a new report that claims it is continuing to work on launching a censored search engine in china. we will discuss the status of project dragonfly. be ending aars to controversial program that logged phone calls of millions of americans. at least that is what an aid to the house minority leader kevin mccarthy told the national security website over the weekend. the program which has its roots in the government response to september 11 collected the records of 540 3 million calls in 2017 and 151 million the year before. in those years, court orders were used to target terrorism and 40 times respectively. they'd says the trump administration hasn't used the program in six months and that authorities may not renew it at the end of the year. i want to bring in mark, managing director and head of digital investigations at narda.
he was a special agent for the fbi cyber division. what does this mean? >> i think it means these programs are becoming obsolete. for many reasons, number one i think we are seeing the repercussions of the edward snowden incident from 2013 went edward snowden revealed this. he burned the government's techniques. we see terrorists and threat actors move to other platforms. that coincides with the emergence of the secure messaging platforms we have seen over the years, like signal and whatsapp. don't serve the purposes of national security anymore and therefore, they are not serving the purpose of defending our country and they have raised a number of privacy issues. what are security officials looking at now? where do they find the threat? mentioned, the threat thers are looking to hide
munication's. any program that touches u.s. companies like these programs the telecommunications industry or even the large internet service providers like google, facebook and others, they will avoid communications. government intelligence agencies will have to step up their game and i don't think they will be able to rely on the cooperation of the private sector anymore or intelligence purposes. emily: what about other methods like prism and the backdoors into u.s. technology companies? >> i think the key to programs like those was cooperation with the private sector. more and more companies are seeing that this is a privacy issue they don't want to be associated with. am a platformss like google and facebook and others collect probably 10 times the intelligence these other programs did from even five or 10 years ago.
them disassociating themselves more and more, while in the cyber industry we are trying to enhance cooperation between the public and private sector globally. when it comes to the privacy of people's information, companies wanted it to be legal and above board. eavesdropping, things like that just aren't accepted. the government will have to change their techniques. hopefully they are to the point where it is serving the national security purposes in a way that the bad guys don't find out about it. ourselves.s not kid cap e-government find other ways to survey a u.s. citizens if they want to? >> we live in a country luckily were privacy matters, and despite what we hear about from both sides of the political aisle, unlike other countries, the u.s. does this for the purpose of national security, not to pry into privacy issues. if this conversation was happening in other countries, we
wouldn't be having the privacy issue, it would be more, what information can they get and how can they get it quicker? emily: do you think anything replaces this? or does it just become obsolete? >> i think it becomes obsolete because the technology, again, the bad guys know that this metadata is being analyzed, and poorly, by the u.s. government. why would they call people in the u.s.? that is the nature of the program, analyzing phone numbers and timestamps on u.s. phone records and text messages. they are not using that, so the value, i hope there are metrics that are tied to it. that will prove whether the programs are worthwhile or not. threat actors are moving to the secure messaging platforms and even social media programs as well. emily: is anything really secure? when signal says the messages are encrypted, are they really? >> encryption
emily: think you for stopping by. huawei looking to ensure the eu its technology is safe to use in five g infrastructure. the company opened a cybersecurity center in brussels atgive people an inside look what would running its network technology. maria was there and filed this report. opened a just cybersecurity center in brussels . the company will tell you the allegations put forward by the u.s. government that have somehow carried industrial espionage for the chinese
authorities are false and they could do a job just as well as any american company. for the eu, the challenge is to balance the geopolitical tensions, and we know the u.s. is pushing hard on the eu to drop chinese technology. can is the fact that huawei do a good job when it comes to 5g technology demand a can do it for less money. ceos will tell you in the telecoms space, if we are restricted from using chinese technology, inevitably the cost will go up. up, redfin is tax genderclose gaps. how the company is creating its own pipeline of female talent. check us out on the radio. listen on our mobile app and on sirius xm. this is bloomberg. ♪
by a: redfin was joined female engineer who was promoted and within a few years, women accounted for one in three of redfin's hundreds of engineers. they trained women with nontraditional backgrounds and pulled the company's own marketing specialist for engineering roles. it paid off on the bottom line, as well. i outlined a story in my book come out in paperback today, with a new afterword addressing
the progress of women in tech. bridget joins us from seattle. thanks for joining us. it was great to have a positive story of progress to highlight in the book. i want you to share what you did , how you recruited women who didn't necessarily have the technical skills you might have looked for in a typical job candidate and turned them into engineers who went on to progress up the company. >> we looked for women who are working in roles that were just adjacent to software development. like someone who is in a technical marketing role. we used all this training we had built to teach them how to build software at redfin. we found along the way that it is much easier to teach someone how to code than it is to teach them how to be a decent human being, someone who can work collaboratively on a team. these women are doing well now. it has been a compute -- a huge
competitive advantage because we recruit engineers from pipelines that others can't. emily: you created your own pipeline. how did you know it was working and these women could go on to be promoted and successful at the company? >> one thing we did is, we measure everything. we are a data driven companies -- company, and we look at our numbers, our numbers on gender diversity, every time we go for a promotion cycle, we published data on our pay gap publicly. by looking at these numbers, we can really see the progress on the if people are getting stuck, we can see if we need to make adjustments. emily: in addition, you found this paid off from a bit -- a business perspective. you were working on your home touring product. it took years to get right. somehow, when you added women to the team and built a more diverse team, you and the making
and i are $30 million. how did that happen? >> we have been working for years on how to automate the process of scheduling a home tour with a redfin agent. we build software and kept tweaking it and trying to get it to work but we found our real estate agents weren't using the software. we assigned a new team, a team that had more gender diversity. that t-mobile's from day one took a completely different approach. they said we are not going to build or software. we will step back and listen to the agents. we will spend time with them, shadow them and see how they are using the software. this gave the menu set of ideas that they never would've gotten if they hadn't taken the empathetic approach. when we build a team with different backgrounds, they have to listen to each other and stretch more and that means we end up building better project for our agents and customers. emily: what can other companies learn from this? it really takes a lot of
small changes to make your company more diverse and more inclusive. we thought of ourselves as diversity mechanics crawling over everything we do, how we interview people and develop careers, even how we run meetings. you have to really settled in and be prepared to make small changes along the way if you want to build a more inclusive company. talk aboutnt to other tech initiatives at redfin. service,your i-buyer these algorithms where everybody wants to know how they work. how do you decide how much a home is worth? what data are you using? >> we have an incredible dataset at redfin, so we have all of this information about how people are visiting our website, how they are looking at homes, but because we are a real estate brokerage we have agents walking through homes with customers, making offers. we know which homes are being toured and which aren't.
it gives us a rich data set to see how people are reacting to homes on the market. we have been able to build the most accurate online home value estimate in the industry. uncertain times politically, potentially economically. there has been a bit of a housing downturn. do you know how well your algorithms perform in a downturn? >> we measured that. we are very data driven and always looking at those numbers. there is more uncertainty when the macroeconomic environment changes. pricing algorithms can take time to adapt to that but we have been pleased with how the algorithm is performing. i think that real-time data we get from agents and customers who are walking through homes, that is able to feed into the algorithm and tell us what we think homes will sell for. emily: redfin's cheap -- chief technology officer, thanks for sharing your story. , continuing to gain
emily: the payments company transferwise appointed goldman sachs to advise on a secondary offering of shares. the proposed deal could value transferwise at about $4 billion, more than double the level set 18 months ago. 's are joined by transferwise ceo. thanks for joining us. what would this mean for the company? kristo: transferwise started about 10 years ago and the problem weeds are solving is borders.ney across banks will tell you it costs $35 to make an international wire. they don't tell you there is about a 3%-5% markup in exchange rates. has we have achieved so far
brought us to 71 countries around the world. we are moving $4 billion every month. this is roughly, what we have been able to build with the funding and support from our users, about 10 years ago. -- a: there is a big the busy ipo pipeline. could you be in that? kristo: not necessarily. we don't see a huge benefit in being a public company. there is a very good funding market for private companies today. emily: why not? why is there no benefit for being a public company? kristo: companies can still move quite a bit faster when they remain private. i think that is important for tech companies. emily: are you saying never? kristo: i'm not saying never, i am saying not now.
emily: there has been a rise in the so-called challenger banks, which has brought a lot of attention. what does that mean for your business? kristo: challenger banking or the change that is happening to traditional banks is interesting. we see that a lot in europe, which has given us good challengers in germany and britain and france. testament that a better service, whether that is cheaper, faster, more convenient, can actually be quite competitive to the traditional banks. emily: would you ever buy one of these companies or merge with them? kristo: i don't see that we need to do that. in fact, we feel a lot of those challenger banks and traditional , we see them as partners who are making it better for transfer services. emily: would you ever apply for
a banking license? kristo: we haven't seen the need to. the regulators have been pretty you need realized that a banking license if you are making loans and if you are taking deposits, and getting it out in loans without keeping it fully collateralized. senioryou have a few employees ahead of asian expansion and banking. why is it happening and how have you filled those roles? kristo: we have to put things in context. 1400 people in about 11 offices around the world. emily: people come and go. kristo: people mostly come and we need a lot more. i think we have about 100 30 open rolls all over the world including new york. emily: for those who might be concerned about the turnover at the top, what do you want to say? kristo: we see people who come to transferwise and stay for a
very long time. the reason being, they are really motivated by what we do. it is very clear how we are helping people save money. we calculate every day, every month how many millions of dollars we have saved our users in banking fees and that is super inspiring. emily: thank you so much. tesla shares falling to their lowest level since october. it began last week in the wake of elon musk's surprise move to close most of the electric carmakers stores and shift to online only stay -- sales. many employees found out about the decision when they read a blog post. -- joining us is a reporter in san francisco. tell us what these employees are saying. were blindsided. that was made clear by the fact that the news was posted
publicly on a blog post and they found out about it. apparently they found out when the media found out. i am getting a lot of emails from people saying thank you for capturing how we felt. it is stunning for the staff. alreadyhe stores are closing. you reported there is a store in honolulu that is closed, one in palm springs that closed. and it is rerouted to another location if you call those stores. >> our understanding was that musk would be evaluating the stores but it is clear that the low performing stores or the ones that didn't get a lot of traffic are already closed. emily: let's talk about the reaction from investors. shares have recovered from their lows today, but we spoke to one investor who sold all of his tesla shares and this investor tweeted, "it pains me to say this since i really love the company but we have sold our position in tesla for our
advisory clients. i believe the decision to close retail stores is a bad one and points to weakness in sales and financial strength of the most of" is that what the negative or pessimistic investors are telling you? >> it is important to notice alex lives in pasadena. he owns a tesla. he has been pro-tesla for a while. this decision to close the stores was a 180 from what tesla has said they were planning to do if you look at their regulatory filings. openedlast quarter they multiple stores including more stores than they had in any quarter in a year and a half. retailso touted their strategy. it doesn't seem like something tesla was considering for a while. it seems like it was in an -- an abrupt decision. >> exactly.
it cut investors off guard. there was an argument to be made that americans and people around the world are shifting their -- andes to online, but there are a lot of dealerships and startups trying to help dealers with the online sales process. it is not unreasonable that tesla would want to experiment with online sales, but to announce they are completely shuttering most of their stores and switching to online only, that really caught people by surprise. including the staff. emily: i want to talk about tesla's employment worldwide, almost 50,000 people employed. the headcount has been increasing significantly year on year. neware reporting information that there are now dozens of jobs that are going to go away at the fremont factory. tell us the latest in terms of how many jobs are actually going away. in january, tesla did i 7% reduction in force worldwide.
on the call less thursday when toy announced the pivot online sales, musk said they would be laying a lot of sales and marketing people but hopefully shifting some of those positions to either stores that are remaining open or service jobs. emily: i know you will continue to keep us posted on this story as this continues to develop. thank you for your reporting. coming up, will they or won't they? plans says they have no for a censored search engine in china but a new report says that may not be the case. this is bloomberg. ♪
emily: this is "bloomberg technology" global link where we join "bloomberg daybreak: australia" to bring the latest in global tech news. i'm emily chang in new york with shery ahn and haidi stroud-watts. let's take a look at the global tech stocks of the day. shery, what do you got? shery: softbank's fund has raised $3 billion thanks to a loan from banks like goldman sachs. it will help bridge funding gaps in deals, according to sources. the vision fund is the world's single-largest pool of capital for technology investment. france is getting ready to levy a new digital tax against companies like google, facebook and twitter that could go in effect on march 6 and be europe's first such tax.
that is according to an interview with france's finance minister. google has said it will not allow political ads in this year's elections. -- canadian elections. google will not accept advertising on all of its ad platforms including youtube, search, and ad exchange for the remainder of the 2019 election. those are the top global tech stories we're watching. emily: thank you. i want to stick with google, specifically the continued debate of a possible chinese search engine. this was the scene on capitol hill last year when google ceo sundar pichai defended google about reports that they were working with the chinese government on a censored search engine. >> right now, we have no plans to launch in china. we don't have a search product there. our core mission is to provide
users with access to information. getting access to information is an important human right. we try hard to provide that information. emily: a new report from "the intercept" is saying google employees have been investigating those claims themselves and claim to have found code as recently as february of this year changed to indicate continued development on the development known as dragonfly. what's going on? to discuss, i have gerrit de vynck. what are employees saying? gerrit: some employees said they did not really trust google what -- when they said that they saw what we saw sundar pichai say , that they were going to put this aside. they were watching some of the code within the public databases at google and they claim there have been changes to the code that was used, being put together for a potential china search engine. google is pretty unequivocal
that they are not doing this at all. emily: google has said this speculation is inaccurate. we have no plans to launch search in china and no work being undertaken on such a project. team members have moved to new projects. how do we square this? gerrit: i think google has been very clear, this is something they don't want to be lying about and be found out again that they were actually doing this. but, they are not going to come out and they we are never, ever going to do this. this is a huge company. they want to be around for 100 years. they don't know what the future will look like. emily: i want to hear sindar say pinky swear. [laughter] gerrit: people do not trust google anymore. maybe they should have never trusted them, but at this point, people see them as a big company trying to make money and do whatever it takes to do that. haidi: maybe he is crossing his fingers behind his back. we saw china revenue jump over 60%. a good result.
are there good monetary reasons why they would not be shutting down all options? gerrit: google owns android which is the most important operating system in china. , in any kindobile of world google has a massive presence there. the technology is used daily by most chinese people. the company in a way has a very strong presence there. chinese ad developers build all kinds of apps with its api. it was a search engine that had the nerve within the company because people felt they did not want to be helping the chinese government to censor search results. haidi: also, there is probably a point to be made that even if they got back in the market, it is hard to get any kind of advantage given how far behind and dominant the local search engines are. gerrit: it is very true, google has no position in search.
when you talk to people here in the states about it, they still believe their technology is better than the local player. i think people within google were kind of chomping at the bit to see if they could solve the search problem in china, if they can make a real run there. i think they truly believe if they were able to do this, they could be successful. their employees pushed back very strongly and they had to make the decision. emily: let's talk about the employee activism which has been a big issue with google. google employees have made progress with their activism, especially when it comes to arbitration. perhaps on the china issue as well. should google be concerned that their own employees are investigating the company from within? gerrit: i think you can look at it two ways. google employees have caused a lot of headaches for executives this year. who is really running the
company? are you running the company or the activist employees? on some issues, there is broad support within the company, in particular when it comes to the gender pay gap. s areld say most googler concerned about that. at the end of the day, the company has always pitched to its employees come work on the world's biggest problems. do the things you want to do and make a difference. if they want to keep saying that, they have to allow their employees to push back on some things they don't agree with. haidi: thank you so much for joining us, gerrit, who covers alphabet for us in new york. still plenty to come on bloomberg tv. this is bloomberg. ♪
growing up. venture capital investment is ballooning. tech giants have added jobs in the city and startups are finding multibillion dollar exits. that is even as amazon has pulled out of its plan to build a second headquarters in queens. the question continues to be , will new york ever become the next silicon valley? let's bring in our next guest, micheal loeb, a new focus on startup investing. also, matt harris, managing director of bain capital. he focuses on investment in financial technology and services. i am normally based in san francisco, but i'm totally unbiased. will new york ever become the next silicon valley? michael: i don't think we want to become the next silicon valley. i think we will have our own vibe and our own charisma and personality. it is nice to have another silicon valley, because last i looked, silicon valley has been doing pretty well. emily: all of this said i said
, multibillion dollar exits. but we have not seen a $10 billion tech company in new york yet. will we? matt: certainly dozens. i don't know if you consider wework. emily: i cannot think of another one. it is technically a multibillion dollar company. matt: it falls off pretty quickly after wework. it is notable because it is a commercial real estate company. that is what you see here in new york, industries that matter. not just technology, but industries that matter with a fresh technology approach. i think that is what new york does well. michael: as opposed to san francisco where the industries don't matter, right? emily: [laughter] how big of a blow is amazon pulling out? matt: i think the way it was handled was a blow. i think people want to face off against new york and have a counterparty they can rely on. i think the way they handled it was poor. i think the outcome does not matter much. i think i would have enjoyed
having amazon here, but we have plenty of homegrown companies as well as facebook and google. emily: what went wrong? michael: i respectfully disagree. i think it is a body blow. i think the behavior blah, blah, blasio was despicable. i liken that to he is supposed , to be the number one salesman for new york. it is kind of like, if i had a salesman who did not make the sale and blamed the client for not signing on the dotted line, they are fired. emily: what should the mayor have done? michael: the mayor should have done what any good salesman has done, which is handheld the client to make sure that not only leads the horse to the water, but the horse is actually drinking. i put the blame solidly on him and gianaris. i don't know his name exact. elect congresswoman alexandria ocasio-cortez. matt, shouldn't amazon should
have known better in many ways that it needed to build its constituency? matt: i don't think amazon has an obligation to do that, but i would say they ran the process in general with a 10 year. i think in this climate, having 220 municipalities compete, spend money, spend resources, knowing the vast majority will lose was tone deaf. i don't think amazon is going to suffer from it, but i think in retrospect, they could have done it better. emily: you think it is a body blow, how? how does new york suffer? michael: new york has had some tremendous momentum. i think about the cornell initiative which bloomberg actually sparked. i think the momentum of google buying chelsea markets for $2.4 billion. they have 7000 to 8000 employees. you were seeing new york develop as silicon valley part two. i think a punctuation point on that would have been amazon. i think it is a statement that it is hard to do business here, that we don't welcome tech companies like we should.
i think it is not just the loss of the 25,000 or so jobs, i think it is the meaning of it, what it signifies, which is we cannot get it over the finish line. matt: respectfully, when was the last time you saw san francisco offer an incentive for someone to move there? we, new york, we need to be in a place where we don't offer tax breaks. the great companies move here for the talent. i think we are actually there. notwithstanding, i wish we would have gotten amazon, i think it was poorly handled, but a body blow is a little harsh. emily: where do you see the opportunities in new york despite the fact this has happened? matt: i will take it. for new york, we have invested over a quarter billion dollars the past five years in fintech, which is what i do. companies like iex, commerce. jet.com. rent the runway. health care.
and, infrastructure software which is relatively new for new york, but it is a high-growth area. so, we see across the board great entrepreneurs. emily: i think state senator michael gianaris tried to call you. [laughter] where are you investing and where do you see the opportunities? michael: we are rather eclectic. we see many opportunities. basically, we see a lot of disruption all over the market. we see a lot of talent here. a lot of young people love to be here because of the culture, the restaurants, the museums, the camaraderie. there is something about this fishbowl of new york and putting all these people here in such a concentrated place. we like fintech, we like health tech we like retailtech, , we like what-the-heck-tech. anything with a big opportunity. anything that is big, disruptive. bluewater. there was a lot of that these days with developments like facebook and all the other ways to reach a consumer. we never had a mechanism to reach 2 billion people at once
and now we do. emily: i always love a friendly debate so thank you for participating. we will have to do this again. michael loeb and matt harris, thank you both. still ahead, wholesale retail startup boxed is drawing the attention of big retailers. how it plans to compete with online and traditional retail giants. we will be speaking to the ceo. this is bloomberg. ♪
emily: while amazon continues to threaten online retailers, one startup is holding its own. hotel retail startup boxed has managed to differentiate itself on the e-commerce giant, offering a limited selection of household products in bulk sizes. it sells bulk sized items like those you find in costco without the membership fee. with advanced warehouse
technology, it has raised $250 million, drawing interest from traditional retailers like kroger. joining us to discuss is the ceo, chieh huang. great to have you with us. chieh: thanks for having me. emily: i think the last time you were on, you were talking about the transition of a fully-automated warehouse. how has that transition actually proceeded? chieh: it proceeded rather quickly. i would say 18 months ago was our first foray in full automation. now, it is humming along. the first week we first turned it on, like ok, what did we get ourselves into? moving quickly, we turned the dial up 100% and got through the kinks. emily: you say you have added more jobs than you lost. how? chieh: what is interesting is we see it time and time again, yet there is this narrative that automation is going to kill everything and all jobs across the country. i don't think that is the case. when you think about atm's, they have not killed the banking industry. there are more folks that work at banks than the pre-atm era.
for boxed, we have been able to grow our business, raise more money. we used the improved economics to hire more people. we have more folks on staff in the fulfillment center than pre-automation. emily: what is happening in the retail space is very interesting because actually you are seeing off-line retail giants figure out online like walmart and target and they actually had pretty strong quarters. what does that say to you? chieh: it says everyone is moving faster and faster. even we have to move faster. we have never been so full of hubris to say that when most of silicon valley was saying, oh, retailers are dead. brick-and-mortar retailers i , don't shop there anymore, they are dead. at the same time, brick-and-mortar retailers five, six years ago also said that online pure play is a toy. it ended up being a race. retailers are going to find out technology faster than tech companies figure out retail, and everyone is going towards that
final goal of an omni-channel experience. emily: kroger offered to buy you for $400 million last year. you turned them down, why? chieh: i would not say we turned them down. we learned a lot about them and the other folks interested in our business, and remain in awe of what they have built over the long history. emily: if you did not turn them down, what happened? chieh: just, you know, it was a bad day. i woke up and, you know i did , not call them back. [laughter] no, that is not how deals usually happen. we got to know each other over that time. we got to know other companies as well. we just felt like there was way more runway as us as a company. when you think about online grocery and what we sell, we are not in the first inning anymore, but we are not in the fifth inning as well. emily: would selling to a larger player like that be something you consider? chieh: i would say with this last $111 million round led by a traditional retailer, eon group in japan, it gives us the runway to actually play this out.
what do i mean by play it out? i think the best thing we can do is march along the path of filing an s1 one day. if we do that, any private outcome will probably be optimized because our finances will be in place, the growth , the profitability will all be there. emily: amazon continues to pick up its prime offerings, investing heavily in video. obviously, has the profitability of aws to do whatever they want to do on the e-commerce side. how do you compete? chieh: it is never easy. the good thing though is when we started the business from scratch, we did not think, my gosh, how are we going to do this? starting off with limited assortment so whenever we do sell something, we sell a lot of it. when we ship, it is eight to 10 items of profitability. when we think about private plan, b2b.
all these little steps built into the overall profitability picture. emily: i have to ask you because i think it is awesome. you pay for your employees to get married. you pay for their weddings. chieh: life-changing events like weddings or a loved one that is sick. emily: how do you think that has changed your company culture? why do you think it is important to do that? chieh: i think it is important because when you think of us not having stores yet, our frontline retail employees, we don't have them because we don't have stores. but, we have fulfillment employees that can fill boxes. for that kind of reason, from a practical basis, you want to treat them like they are part of the overall team. for folks in the fulfillment centers, there are studies that show 75% of americans can't pay a $500 bill if they were presented with one. helping them with life-changing events is really important. emily: competition is stiff. i never like to say never, but i feel like it is safe to say jeff bezos would never do that.
chieh: maybe you think about it -- maybe he thinks about it sometimes. i don't know. there's also a business aspect to it. at the end of the day when you replace a vp level person these days, it is a $125,000 to a recruiter. replacing manager to director level, it is $35,000 to $75,000. if you increase retention and lower turnover, that is a big pool of money you can help employees with big events like that. emily: interesting. great to see you in person. thank you for stopping by. apple's move into original tv shows and movies is facing a complication. disney ceo bob iger has sat on the board since 2011, and last week the majority of shareholders said they would reelect iger to that seat, but would it cause a conflict of interest reach a breaking point? let's bring in mark gurman and ole -- in l.a. who is calling this a conflict of interest? mark: as we know, iger has been
on apple's board since 2011 and also runs disney. we spoke to corporate governance experts who say this means they are going in each other's territory because they are both working on these streaming video services. apple at the end of this month will officially enter the tv shows and movies entertainment industry. they have been ramping up for quite some time. of course, this is bob iger's bread-and-butter. the problem is, as chairman and ceo of disney, he is going to become apple's largest competitors. this harkens back to something we saw 10 years ago when eric schmidt, ceo of what was called google at the time, now alphabet, had to recuse himself from apple board meetings until steve jobs had him resign because things were getting too complicated. emily: what do we know at this point about apple's streaming strategy? folks in l.a. say that apple is moving pretty slowly. we don't know what their strategy is. mark: right.
i think it is complex to get to a simple type of thing. i think from a consumer perspective, someone who has not been following all the ins and outs and the drama on this development find it quite simple. i will talk about it from a consumer perspective. you have this consumer app at the bottom of your ipad or iphone. i imagine they will bring this to the apple tv. they will bring this in the mac. you can get all of this original content that apple is providing, in addition to tapping into a subscription plan for things like hbo, starz, and showtime. combined with espn, the itunes movie and tv show library, so a complete package of different entertainment offerings from apple. emily: apple does have this event coming up this month. we don't know a lot about it, but it appears to be tied to streaming. what have you learned so far? mark: this is not something they have done in the past.
it did not make sense when they were growing as a hardware maker. now, they are positioning themselves as a service company, it makes sense. this will be a media event currently planned for march 25 at the apple park campus in cupertino, california where they typically hold these kinds of things. they will be focusing on services. apple has been working on three new services-related projects. one, obviously, the video project we are talking about. another is the premium magazine subscription service where you can subscribe to a bunch of magazines for one bundled price. they're also working with goldman sachs on this credit card with apple pay. they are waiting to release a new apple pay app for iphones at the end of march, early april. emily: i know you will continue to keep us posted. mark gurman for "bloomberg tech," thank you. that does it for this edition of "bloomberg technology." we are live streaming on twitter @technology. follow our breaking news network, tictoc, on twitter. this is bloomberg. ♪
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