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tv   Bloomberg Technology  Bloomberg  August 19, 2022 5:00pm-6:00pm EDT

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>> from the heart of were innovation, money, power and collide, in silicon valley and beyond this is bloomberg technology with emily chang.
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emily: i'm emily chang in san francisco. coming up in the next hour, for the first time ever, streaming cox cable with u.s. viewers watching more net netflix, hulu and disney plus then cable television. we begin with a historic change in entertainment and how far the wave will go. venture capitalist who claims apple is the greatest it has been today, why he thinks regulators are losing, while shaking meta- and amazon. it could be the fire festival travel, we tell you about the luxury trip planner that blew up during covid, starting with big concerts canceled, then things spiraled out of control. we will get to all of that in a moment. stocks sliding, including bed, bath & beyond after investors learned: officially shared its
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stake. katie with more. unhappy with the ryan cowan. >> not happy at all. what happened with bed, bath & beyond feeds into what we saw when you look at the broad markets, the nasdaq 100 your big tech index falling 2% today. that was not the worst of it. if you look at the philadelphia semiconductor index, the chip stocks almost down 3%. you look at some of the losers, apple, you have nvidia falling 5%. just a sea of red behind me. let's get to bed, bath & beyond. sea of red does not even come close to describing it. down 52%, worst ever for this stock. that is after ryan cowan sold out his entire stake, after seven months or so in the company. a really quick turnaround. people on reddit,. . none too pleased with him bed,
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bath & beyond, just a dramatic example of what we saw overall this week, if you look at some of the worst performers. let's pull that up., meta not having a great week. those were some of the great point decliner's. you look at some of the biggest percentage drops, it was baidu. a really ugly and to what was a difficult week overall. emily: bloomberg's katie greifeld. thanks for walking us through the week. for the first time ever, u.s. viewers are watching more hours on streaming then cable, marking a historic change and later treatment. subscribers to services like netflix accounted for 34.8% of all tv consumption in july, according to research. that edged out cable television at 34.4%, broadcast, 21.6%. let's break this down our media and entertainment analysts.
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will start with you, set the stage. what do these numbers tell us? >> streaming tv continues to gain share from broadcasting cable. nielsen rolled out this metric a couple of years ago. it was one of the first of the third-party metrics that netflix endorse that had been skeptical of the weekly ratings. there was a period a year ago where streaming shares assume to flatline. you have a lot of a traditional media people saying streaming hit its peak. that clearly hasn't happened. i would note that if you put cable and broadcast together, paid tv accounts for more viewing than streaming, streaming gaining shares will only continue to do so. emily: what is your take, kevin? a month ago we were talking about netflix losing subscribers. here we are with these big numbers. how do you square that? >> i think it speaks to the
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amazing amount of content available across netflix, paramount plus, hulu, apple tv, they have all pushed their strategy far ahead especially after the initial covid outbreak. this streaming gauge that has been rolled out has been helpful. the streaming companies themselves don't report a metric that can be -- that can allow us to measure usage or reach among them across each other. it is a big moment for streaming to overtake traditional. i would expect it to continue to happen, maybe not every month, continuously as major sports season starts like the nba. i don't think this will be the first time we see a streaming service overtake tv. emily: what are the differences between netflix and disney plus?
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are you concerned about netflix losing subscribers but according to disney, ash according to reports, disney is gaining subscribers --according to reports disney is gaining subscribers? >> consumers can identify with it. they go back to going back with these franchises. netflix is pushing back its initiative to build more franchises, for titles like stranger things and other big originals of that it has rolled out. it is trying to push the envelope in terms of franchising titles as well, so that streamers and consumers have a better idea of what they are signing up for. which, i think a lot of people have more of an idea of what disney plus will offer with their originals. emily: there was a question when disney launched disney plus on whether it would be too kid.
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focused i was speaking with a long investor in disney. take a listen to what he had to say about that. >> parents like me absolutely trust disney content with my kids. i took youtube away from them because youtube shorts has become the garbage hole of hell. i don't on my kids watching garbage hole content. if i put on disney plus there is nothing they can watch that is bad. i think parents trust the brand. that is starting to really pay off. emily: lucas, do you agree with what he said about youtube and also can disney win over adults? >> there's no question that parents trust disney. i think ross is in the minority in terms of parent behavior. you look at the most popular channels in youtube and almost all of the market channels, it is become a default babysitter for so many different families that there is not really a comparison. the other thing is disney did not grow in the u.s. there's not a bunch of parent signing up for disney here, it
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is overseas that disney has been quite strong. that challenge that you outlined at the top is still one for disney, it is really good with parents, it's good with fan boys , people who love a star wars, marvel, but it has to broaden its appeal to a wide and -- wider group of people and that is something they're working on. that is why they started adding r rated movies,, because they need that's keep growing, to keep wall street excited. emily: walmart also getting into streaming, teaming up with paramount. amazon has amazon prime video. what exactly are walmart customers going to get from this tie up, is it smart? >> if you are a customer of walmart plus, which is walmart's equivalent of amazon prime, you will have access to paramount plus. they are trying -- walmart
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experimented of making its own a video experience. there leaning on a trusted in growing brand. it has the potential to be beneficial. it works for paramount if walmart signs up a bunch of people. it works for walmart if paramount is enticing enough to get more people to sign up for service. emily: some big news in sports entertainment. you got paramount renewing the rights to the champion league football matches. you've also got fox, nbc, cbs teaming up for the big ten. i wonder, is sports early the next and only way for the streamers to get to the next level, whole new level? >> i think so. not just sports but news as well. a lot of these newer streamers, with the wave that started in
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late 2019, launching, they came out of the gate strong with originals like the morning show from apple tv. one of the big things consumers cannot really do with access to these major services like netflix, paramount plus and apple tv's access to significant amount of live broadcast from the major sports leagues like the nfl or nba. it is not surprising that we are seeing these big taxes. , i think we are at a point where consumers already have access to so many on-demand scripted and unscripted content choices, right now it is up to the streamers to differentiate themselves with live content and sports being a major part of that. emily: apple has been dabbling with sports content. where are the battle lines going to be drawn? which streamers will be bidding
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for what in is not going to be the next wave of big competition? >> the most progressive of the streaming services in sports, you take espn plus out of the equation, that is part of the broader empire, amazon. it has -- a football coming up in a couple of weeks, they have a lot of rights in europe. they were a big player for the big ten and champions league and did not get it. they have shown the biggest commitment and appetite. apple has started to play around the edge with the mls rights. netflix has not jumped in in a big way yet. they have offered a paltry sum for the formula one rights. they have been reluctant to spend big on live sports. we will see what comes with the next big rights negotiations. you have the nba, nascar coming up. if one of those leagues or organizations tries to carve out some rights for streaming that will be another big package to go. it is worth keeping in mind that
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something like the nfl, amazon is the only major streaming service that has largely exclusive rights. most of the other grahams -- games on broadcast tv. emily: new potential battleground. thank you both. coming up we will take the temperature in the vc world as public markets continue to roll with benchmark partner eric. just called on apple for being the greatest monopolist today. he is next. this is bloomberg. ♪
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>> apple has identified its next victims, bringing advertisement some are parts of your iphone, apple pushes ads in three places, the app store, apple news. in sox apps, apple shows display advertisements, that means third-party companies like car dealerships or mortgage lenders can showcase their advertisements just like they can on the website. on the app store the situation is different. there, apple has a search apps, this allows developers to buy their way into showing up on search results. an app store developer can search for the term a basketball so their apps will serve competing apps in the list of results. it ironic given that its app
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attracting transparency privacy future limits the ability for meta-, snap and other developers to generate as much revenue as possible form advertisement. that is because the feature allows users to choose if they want their data collected across third-party apps and websites. apple told them to expand its own ad business and is planning to add search ads. other areas where ads could appear are on apple podcasts, maybe one day with an ad supported tear of apple tv plus to compete with the new offerings from netflix and other streaming deal providers. emily: you can subscribe to mark's power on on i want to talk more about apple and adds as eric vishria has a few opinions of the apple makers privacy. thank you so much for joining us. you had a tweet that caught our eyes, sing while regulators
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chase amazon -- saying while regulators chase with amazon, the greatest monopolist today is apple, is taken the privacy narrative and stifled competition and favored their own ads business. why do you think apple is the greatest monopolist today? >> the end of the day, apple has a tremendous market power. is marco saying with the rollout they had which they have done under the cover of privacy, they are simultaneously and ironically pushing their own ad business. while they are crippling other add businesses, they are growing their own and benefiting and favoring their own. facebook a, amazon, they're going to be bought i'm not worried about them. there are thousands of small companies, directly to consumer businesses, mob and pop shops
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that sell -- mom-and-pop shops that sell online, gaming companies that are collateral damage with the rollout. my concern is more for those companies then it is for facebook and amazon. emily: why take the comparison? >> i think it is the hypocrisy of saying one thing, which is hey, this is about privacy and privacy to the consumers, while simultaneously building in growing your own ad network with its own targeting capabilities. it is literally indirect conflict with each other. emily: what do you think the government should be doing instead? >> i think regulators need to think about what is actually impacting consumers and small businesses and without lands, chooser targets. facebook making a meaningful acquisition and virtual reality
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is that negatively impact consumers or the ecosystem. it is totally fine. whereas, this type of behavior is more complicated. it's more sophisticated. but it is actually impacting small businesses and consumers. emily: meta arguing that the acquisition of the vr company with unlimited will be good for competition, debar that? --do you buy that? >> i do. we are in the early stages of virtual reality. there are no established metaverse winners or goliaths as it is today we don't really know who it is or what form it is going to take over the next five or 10 years. small acquisitions with teams and technology, for everyone is trying to figure it out still, that is ok. that is healthy competition. maybe it will turn into something, maybe it will not. we don't know yet. some of these other markets are much more established and
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companies have a lot of market power like apple. emily: looking at the stock plunges of these companies today. apple seems to be weathering the downtrend. what is your view and benchmarks view of what is happening in the market now, with the hindsight of being in the late 90's, top tech analysts in wall street? >> think one of the things that benchmark has done consistently since our founding in the mid-90's is invest consistently. most of what we do, 90% of the companies we invest in our 10 people or less of the time of investment. when you are doing that you have a very long term view, where you are not going to make money for eight or 10 years, if one of those small companies grows into something big. over the years, we want to be consistent, pre-global financial
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crisis, post global financial crisis, in the fast -- last few years, our investment pace is almost identical. so, i think consistency is future for the business we are in. obviously, the last two years i would say we are characterized by fomo in the growth markets. there was so much money swapping around, rounds getting done and prices with very little diligence. this correction broadly is healthy. a lot of speculators will get wiped out. lot of people who were only here to make a quick buck will get wiped out. i think you'll be left with a lot of people who have real visions, believers, who are willing to put everything in it. that is healthy. i am optimistic. every once in a while, little spring cleaning or cutting is good. emily: here we are in the middle
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of a correction. you've got a lot of controversy surrounding writing not just the check to adam neumann but it's a guest check ever, what do you make of that -- because to check ever, what you make of that? >> we and participate in that round though we are serious in investors and we do not participate in this recent $350 million round. i can't defend another firm's investment. there's no value. in doing that i am not inside their heads. i would say this about adam, we can debate a lot of things but he is definitely top when 001 percent in terms of his ability to separate their people from his money -- their money. i will leave it at that. emily: what do you mean by that? >> is very, very good at raising
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money, as he has shown at time and time again. he has done that again here. emily: would you write him another check? >> we didn't. emily:. ok what you think that says about -- is it a broader indictment of silicon valley, does it showcase the problem, or is it a very specific issue? >> think these -- i think these mega rounds, i can pretend to know what goes into a make around or growth like this. i don't know -- this is in the type of investment we make. the vast majority of what we do is 5, 10, $15 million investments in small companies in the early stages where we are
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making a 10 year commitment to work with them. so, that is the business i know. i think there's a lot of changes in growth investing, with softbank and lots of firms raising larger and larger funds. but that is not what we have done so i can't speak to it. emily: all right. eric vishria partner at benchmark capital. i appreciate you stopping by. we will be right back. this is bloomberg technology. ♪
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emily: the biggest producer of the nickel use an electric car batteries wants to be more than just a source of resources. the indonesia president spoke to our bloomberg editor-in-chief.
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>> what we want is the electric cars, not the battery, the tesla we want to build electric cars in indonesia, from ford, hyundai, japan, toyota, suzuki. we want a huge ecosystem of electric cars. emily: indonesia has held talks on potential partnerships with tesla over several years but there've been no agreements. coming up, look at how funding for women led to startups has changed since the pandemic, next. ♪
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emily: back to a store that has had everyone talking this week in silicon valley, writing his deist -- his biggest check ever to controversial reworking
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founder -- wework founder making his new startup a unicorn. the same one that had a peak valuation of the to billion dollars in a plummeted to a billion dollars, lots of people losing their jobs and quite a few investors losing money. people always ask me why i defend toxic female offenders, my association with female leaders that may have done bad things, is because women leaders are held to standards men are not, men get rid of the million dollars and when we get ostracized from tech, if i don't speak up, who will? -- men get $350 million and women get ostracized from text -- tech. >> i thought you would mention my viral joke tweet. emily: that was more inside
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baseball. >> come degree is my next act. -- comedy career is my next act. i do not think anyone a surprise adam neumann was able to raise mega funding. what struck accord was that especially to women founders, he was given a second chance when so many underrepresented minorities and women are not given a first chance. whether the big bold ideas and founders could we uncover if we invest in people besides white men? emily: i spoke to a lot of people who did not want to speak publicly about this and did not want to say anything negative. why do you think people will not talk about? >> i do not think this is unique , i think venture capital as a holder has been a big emphasis on growth at all costs. burning lots of cash on the way to the top.
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i am actually pretty optimistic, i think that is really changing. i think that will serve women founders very well women get 2% of the venture capital, we have always had to operate in a profitable way on the path to profitability, now that it is finally getting some respect. it is not just growth and burning lots of cash. it is growth that is sustainable that we have done at winnie and a lot of women founders have done. emily: part of it is would you get a check from one of the most prestigious venture capital firms in silicon valley, why take that risk of never getting funding from them? sara: i think, either way, this is not anything having to do with them. i think a lot of firms across the board, this is an industrywide number. 2% of the venture capital goes to winter -- women founders.
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even less to underrepresented women founders. i think is not endemic, it is a great example, what about all the women who were not given second chances after they made a big bet that did not work out? emily: many that never got a first chance. sara: and many that did not even get a first chance. now is a good time to talk about it. there is a greater emphasis, a much greater emphasis on profitability and sustainable growth. emily: you and i talked when you're launching winnie. what is your expanse and raising money, not just a female founder, but a founder for raising money for child care? sara: it has been rough, child care has been historically underfunded, undervalued, and under looked. it is a $90 billion market, health care for kids under six
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alone. that money is massive, but has not been there. when you are building in an industry that is so big and so entrenched and trying to innovate it takes a long time. a lot of what was invested in the past were these really quick wins. you know what take a loss, you will not grow in childcare, network it is so fragmented. we have taken a smaller growth approach, were at this almost seven years, we were fortunate for finding investors that believe in the long haul. now we are the
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that we are not talking about, and how do you see the problems being resolved? sara: problems in childcare? one big problem is the lack of investment. it does take investment to innovate. we see this in pretty much every other industry. it is hard we have to grow just based on your profits. it is slower and takes more time. i would absolutely love to see more investment, not just from venture capitalist, although there would be nice, but also from employers, the government. build back better was suppose to be this great big influx of cash into childcare and under that is happening. there really is a lack of investment going towards childcare. i think it can come from many different sources. someone has to step up here. emily: i also asked -- want to ask about twitter, you worked at a lot of different tech companies before starting your own. you are to twitter come we think about elon musk potentially owning twitter? >> he actually just recently tweeted something like, being a mom, as a dead it is where he is tweeting about moms -- being a dad, he is tweeting about moms.
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timmy -- to me it is him saying moms it should stay home and take care of kids instead of careers. i do not think that it is good for twitter culture. i have not worked there in a while, i do not think they would agree with that approach. they have hired lots of women and have lots of moms working in leadership goals. they have big supporters advocates and getting more women in leadership. that to me does not seem in line with our culture at all. emily: i sure even you would agree, potentially there should -- could have been more innovation in twitter over the last decade. they could have made more money, grown faster, maybe they need and elon musk? sara: maybe they need more women, more moms working there. this is been a massive distraction for the employees. we talk about innovation happening possibly focus 100% on
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innovating and making the product better for users when you have this massive distraction going on at the same time? i do not think this has been good on that front, either. emily: well we will continue to follow the drama on all fronts. thank you for helping us work through some of it. winnie cofounder and ceo sarah, we appreciate it. why bitcoins having the worst week in months that is next. this is bloomberg. ♪
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emily: time now for our daily crypto report, the big focus on the selloff of bitcoins dropping 9% the lowest level since late july. according to kueng blast, some $200 million in crypto -- coin blast $200 million in crypto assets liquidated in one day. let's bring in david, cofounder and president of prochain capital how long will this last for crypto? >> i think it lasts through labor day at least. the dog days of summer, not much going on, i think macro we have had a good run up in equity markets. we have had a good run up generally in crypto, certain
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very strong in either. right now the market is deciding should we be a risk on environment or do we need to pay more attention to inflation rates, policy and so forth? emily: how long does it extend beyond labor day? david: i do not think very long, we will start to get some announcements after labor day around things the crypto community cares about. legislation, regulation, and potentially industry related announcements like the few received out of like rock over the last couple of weeks in terms of -- black rock over the last couple of weeks in terms of their for a way -- foray into crypto. emily: do you differentiate between crypt -- bitcoin and ether? >> right now you have to cover the narrative around the merge for either is overpowering. today did not matter, over all
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the narrative is very strong and is as we get to closer and closer to the merge that narrative will become -- lead in terms of ether's movement. i do not know if it is bullish up until the end, or bullish for some time close to the actual merge state and then there'll be a point of time or people will, start to sell the news. emily: prochain capital is down 83% year to date, you jumped back -- 53% year to date, he jumped back up 19% in july. >> we had a fair amount of risk of attitude, we also took a bunch of cash off of the table and held in reserve to redeploy.
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we did think things were going to go materially lower and we redeployed that capital during that period of time. we are not just invested in tokens, we are invested in equities. focused on the crypto and digital payment sector we have done very well there as well to bounce out our portfolio. emily: how would you gauge broader institutional sentiment in crypto right now? you have bankruptcies, you have celsius, how long does all this hangover? david: i think the institutions, this is my firm opinion. i think the institutions have been going through an educational process for an extended period of time at least two years if not longer. they have resources and human resources in particular to go forth with that education. in terms of when to go ahead and decided to involve -- decide to
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get involved, that happen over a period of time. when you throw down the hammer is in terms of various serious numbers. if i had to guess, a number of them have gone ahead and added or started positions during this downturn. i think they are watching, particularly what is going on with the bankruptcies. you raise that point. in terms of the sector generally come i think the sector is learning a lot through the liquidation, and bankruptcies of 3 arrows, celsius, voyager. is a learning process and being able to understand what the priorities are, legal priorities in terms of legal rights of the account holders, depositors, and what exactly those assets when held, directly in accounts or directly in crypto or rights to
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accounts in other institutions in crypto and what that shakes out to. institutions are very keen and learning results about this and in tandem at the same time understanding the regulatory framework. the sec seems to be going off without any guardrails. i think the legislator is trying to rein them in. i do not think we will see that until the midterm elections. between the illegal president being sent in those cases coupled with the -- the legal president being set those cases coupled with the uncertainty, is leaving institutions a middling vision. there -- position. they are still educating, and they will deploy very heavily there is no way of knowing when that right time will be we have to be there ready and waiting for it. emily: thank you for your analysis there, david from prochain capital president, lots
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watch think you for stopping by. coming up fire festival 2.0, that is what some say, paul a luxury travel started that is going -- pollen, a luxury travel start of those going under. next. this is bloomberg. ♪
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emily: is branded as the new fyre festival fiasco, pollen has had to cancel dozens of its luxury events over the last year. something that's prompting a wave of customer complaints. now the company is going through a restructuring, it has been blaming the omicron variant for its misfortune, employee say executives bear some of the lame as well. let's dive into this, with katie who has been all over the latest develop its. what is happened here? katie: good to be here, in my 10 years of covering start this is one of my that's one of the -- one of the unusual situations in terms of money management. this was valued at 800 million a few months ago. now unclear if they will be
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worth anything as they have trouble finding buyers at all. it is being called fyre fast because it is music related businesses, they booked festivals, they booked an event in mexico for people to see a band departure. after people arrived, i was told even as soon as an hour before the concert was supposed to begin it was canceled. people were there and there was no event. people did not even get refunded. certainly people were pretty upset about that. there have been a lot of customer complaints. according to my sources that have spoken to, while the company blames covid for a lot of misfortunes, in this particular instance they actually had not secured the proper permit to have the concert to begin with. a lot of allegations of mismanagement all across the board. weatherby planning, -- be it
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planning or not spending money properly. emily: what are we learning from employees about the part of the story that is not being told? katie: we have heard a lot of different things. one thing that we have heard that resonated with that, while it seemed like they did not have money to pay their bills and they were not paying their bills. they were spending money on expensive parties for themselves at expensive villas. we got a hold of some documents and said they spend over video thousand pounds on a villa -- 50 ,000 pounds on a villa that was claimed to be legitimate business purposes. they were skipping customers, not paying employees, and forms of compensation, they were not paying vendors. they kept a list, an excel
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spreadsheet, something on there that says what will happen if we do not pay these people. they were trying to figure out how to prioritize who they pay. we put in our story sometimes it was because someone got more attention on social media for their complaints that got them ahead of the line and getting a refund. a lot of allegations of mismanaged funds, 16 people directly involved with this and there will be more stories to come. we have a lot of pretty damming allegations we are looking into. curious to bet that some more. emily: that is a question, will this company make it or will they go out of business? katie: they have struggled to find a buyer. they hired goldman sachs and unable to buy -- find a buyer. it was unsuccessful. will someone want to buy pollen
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with all of pollen -- problems? they did book justin bieber and other high profile events so can say there is something to their brand. i do not know it looks like they are having problems. emily: for more of your putting on this, bloomberg's katie roof. that does it for this week's "bloomberg technology." tune in next week to see how videogames are being prescribed as remit to certain illnesses.
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>> china slows, the fed worries and former president trump strikes back, this is bloomberg wall street week i'm dave westin. this week special contributor larry summers of harvard is on -- on where the housing market is headed. >> i do think we


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