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Speaker 1: From the heart of where innovation, money and power COLLI

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay. I'm Emily check in San Francisco, and this

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Speaker 1: is Bloomberg Technology coming up in the next hour. It

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Speaker 1: was a bad week for tech stock that just kept

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Speaker 1: getting worse from big names too small. It was the

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Speaker 1: worst five days for the nast accents January as investors

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Speaker 1: wonder what the Fed does next. Plus Grinder, the dating

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Speaker 1: app focused on the l g B t Q plus

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Speaker 1: community as a new CEO or conversation with George Harrison

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Speaker 1: as it readies for a public debut, And bad news

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Speaker 1: for Star Wars fans, Disney has pulled the upcoming film

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Speaker 1: Rogue Squadron from its three release calendar. How this will

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Speaker 1: impact theaters globally this hour. I am a hacker. That

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Speaker 1: is the Slack message that Uber employees received from an

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Speaker 1: unknown source late Thursday, prompting the company to shut down

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Speaker 1: its internal Slack messaging as it investigates a massive cyber breach.

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Speaker 1: This according to The New York Times. My next guest

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Speaker 1: casey Ls is the founder and ct O of bug Crowd,

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Speaker 1: a bug bounty company that specializes in identifying errors or

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Speaker 1: vulnerabilities in other companies software systems. He joins us now

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Speaker 1: to break it all down. So it sounds pretty serious. Casey,

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Speaker 1: I know, there's a real fire drill happening inside uber

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Speaker 1: right now. How did this happen? Yeah, so thank you

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Speaker 1: for having me. Um. You know, bug crowd works with

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Speaker 1: hackers all the time, but this was one of the

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Speaker 1: bad ones that we try to stop. Essentially, what we

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Speaker 1: know at this point is that there was either through

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Speaker 1: text messaging or possibly a multi factor push message notification,

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Speaker 1: basically a spam campaign conducted against people with with elevated

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Speaker 1: privilege within uber. Um. That spam campaign was successful, and um,

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Speaker 1: you know, because of that success, the the attacker got

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Speaker 1: access to credentials that got them inside the network. Once

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Speaker 1: they're inside, they're able to to move around, you know,

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Speaker 1: find additional information to escalate their privilege and and do

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Speaker 1: some of the things that caused, you know, some of

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Speaker 1: the weirdness that was on Slack for example, to that

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Speaker 1: started to break yesterday. Let's talk about the weirdness. One

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Speaker 1: of my sources says there are unseemly pictures all over

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Speaker 1: their internal networks. Aside from wreaking havoc. What kind of

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Speaker 1: valuable information could they've gotten their hands on. Yeah, it's

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Speaker 1: it's speculation at this point because you know, I think Uber,

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Speaker 1: as of two hours ago, they're they're basically posting precautions.

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Speaker 1: There was there was obviously the notice and the report

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Speaker 1: of them, you know, telling their internal employees to stop

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Speaker 1: using Slack and so on. Um So it looks from

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Speaker 1: from the outside in that you know, nothing is necessarily

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Speaker 1: off the table at this point, and there's still obviously

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Speaker 1: a lot of incident response going down, like Uber is

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Speaker 1: having a very busy Friday and quite likely a very

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Speaker 1: busy weekend just being able to reverse this thing out

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Speaker 1: and work out exactly what has happened so they can

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Speaker 1: take the appropriate response steps and and obviously alert people

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Speaker 1: um as as necessary as well. But you know, as

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Speaker 1: at this point in time, they're they're saying that, you know,

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Speaker 1: things like private user data has not been accessed, uh

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Speaker 1: and and so on. So it's not necessarily um an

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Speaker 1: assumption that the attack has gone and gotten everything and

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Speaker 1: and used all of that. But obviously they've had a

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Speaker 1: lot more access than they should and when anything like

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Speaker 1: that happens, especially with some of the kind of trolling

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Speaker 1: that seemed to go on and off the back of

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Speaker 1: the hack, inside the inside the corporate environment of of

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Speaker 1: uber Um. There's a lot of work to be done

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Speaker 1: to figure out, you know, what exactly has happened so

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Speaker 1: it can be fixed, you know, as you say, Uber

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Speaker 1: says they have no evidence that the incident involved access

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Speaker 1: to sensitive Uber data. It doesn't seem like the Uber service,

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Speaker 1: the public Uber right sharing service has been impacted yet, right, Yeah,

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Speaker 1: it seems like yeah, correct. They seem to be focusing on,

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Speaker 1: you know, continuing operations and providing business as usual. But

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Speaker 1: obviously Um you know, talking to folk on on the

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Speaker 1: inside and folk rounds the situation. They are very busily

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Speaker 1: burning the whole thing down and working out exactly what

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Speaker 1: needs to be taken as a as a response step

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Speaker 1: and as future precautionary steps as well. All external services

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Speaker 1: operational to this point. Now, there's an interesting bug bounty

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Speaker 1: tie in here in that the perpetrator also got into

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Speaker 1: their hacker one system, which helps the company um pay

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Speaker 1: bug bounties to people who find vulnerabilities in Uber system.

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Speaker 1: This is similar to what your company bug crowd does.

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Speaker 1: What do you make of this yeah, it's it's similar

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Speaker 1: to to a big part of what we do for sure. Look,

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Speaker 1: I think what I what I make of that is

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Speaker 1: that that's actually how I first lewent of of of

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Speaker 1: the issue. There was there was basically more spam. So

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Speaker 1: you talked about some of the inappropriate pitch is and

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Speaker 1: there was you know, apparently bands are going on on

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Speaker 1: on the corporate slack um, you know, people interacting with

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Speaker 1: with the attacker and so forth. UM. Kind of carrying

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Speaker 1: along that same line, there was messages that got sent

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Speaker 1: out to basically everyone in the researcher community or in

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Speaker 1: the white called the white hat hacker or the good

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Speaker 1: guy that thinks like bad guys um community who had

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Speaker 1: submitted an issue into hacker one in the past, basically

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Speaker 1: saying this is what's happened, like I'm in here now

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Speaker 1: just so you know. UM. They didn't really seem to

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Speaker 1: be much of an intend or purpose to that other

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Speaker 1: than just to make a bunch of noise, but it

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Speaker 1: definitely did UM. And you know, at that point in time,

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Speaker 1: you've obviously got a whole bunch of computer security experts

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Speaker 1: receiving this message. They jumped straight into like what the

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Speaker 1: hecks happened mode um, at which point, you know, I

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Speaker 1: noticed it and got involved and obviously started taking you know,

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Speaker 1: whatever steps might be necessary. From from our perspective at

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Speaker 1: bug crowd, it's like, Okay, if there's weird stuff going

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Speaker 1: on that's impacting the vulnerability disclosure and bug bounty space,

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Speaker 1: and we're obviously a large part of that spice, we

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Speaker 1: need to make sure that you know, there's nothing affecting

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Speaker 1: us as well, which sure enough it w wasn't decompy

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Speaker 1: too careful and this sort of thing starts to go

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Speaker 1: down well. Interestingly, at this very same time, Joe Sullivan,

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Speaker 1: the former chief security officer at Uber, has been on

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Speaker 1: trial for a data breach, a huge data breach that

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Speaker 1: happened back in sixteen that the company allegedly didn't notify

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Speaker 1: the public about when they should have. Uber at the time,

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Speaker 1: as I understand it paid this hacker a hundred thousand

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Speaker 1: dollars to make the hacker go away, but didn't properly

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Speaker 1: disclose it. Um, what do you make of of the

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Speaker 1: timing and also the history of Uber maybe not having

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Speaker 1: a great track record here. Yeah, it's it's interesting because

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Speaker 1: obviously that cases is ongoing at this point. I think

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Speaker 1: it's actually you know, it's in session today. It's been

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Speaker 1: in session pretty much a week, um, to my knowledge,

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Speaker 1: And you know, I think Joe's side of the story

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Speaker 1: and kind of the internal side of the story through

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Speaker 1: discoveries is playing out now. Um. You know, that whole

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Speaker 1: that whole incident, I mean, probably the other thing that

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Speaker 1: got my spidey sense is tingling just a little bit,

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Speaker 1: um with with the timing of all of this, was

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Speaker 1: obviously that that whole thing is going on currently with

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Speaker 1: respect to the to the breach. Um, You've got you know,

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Speaker 1: a bunch of other things happening that that are just

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Speaker 1: generally um, you know, encouraging I guess activist, Um, you know,

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Speaker 1: activism activity around you know, Bay Area tech. At the moment,

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Speaker 1: there's a there's a string of things that are happening

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Speaker 1: that's getting people's attention. You Mudge's testimony h earlier on

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Speaker 1: in the week was respect to Twitter, you know, the

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Speaker 1: stuff that's going on with cloud Flower over the past

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Speaker 1: couple of weeks. There's a lot of very heightened and

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Speaker 1: very passionate subjects kind of all boiling up at the

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Speaker 1: same time. Um. And that was frankly the correlation between

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Speaker 1: all of those things, and then this happening at Ober

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Speaker 1: was was one of the things that kind of you

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Speaker 1: caused me a bit of a sleepless, sleepless night last

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Speaker 1: night trying to figure out what that is going on.

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Speaker 1: But yeah, and so of you know, speaking to how

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Speaker 1: that reflects on Uba and how it reflects on all

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Speaker 1: of that, It's it's too early to say any of that,

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Speaker 1: you know. I think my my main thought right now

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Speaker 1: is is frankly, um, you know, sympathy and kind of

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Speaker 1: my heart going out to the security team that's having

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Speaker 1: to work a very long weekend coming up to burn

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Speaker 1: this whole thing down. So I think just starting there

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Speaker 1: is probably the right place to start long hard weekend

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Speaker 1: for sure, ahead of them. Casey Ellis, founder and CTEO

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Speaker 1: of bug Crowd, Thank you for stopping by. Coming up.

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Speaker 1: Grinder gets a brand new CEO. We're gonna speak with

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Speaker 1: George Arison next about his ideas for the popular dating

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Speaker 1: app Mrs Bloomberg. The dating app Grinder just announced the

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Speaker 1: new CEO, George Arison, co founder and former CEO of

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Speaker 1: the auto e commerce marketplace Shift. The ftill has applied

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Speaker 1: to a point someone who identifies with the lgbt Q

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Speaker 1: plus community in this top role. As the company prepares

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Speaker 1: to go public, George Arison joins us Now for more

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Speaker 1: on the big news. So stepping into a big role here, George.

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Speaker 1: But you have some experience with UM obviously a car

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Speaker 1: marketplace and on the board. What did you learn behind

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Speaker 1: the scenes that you think you bring to the table here. Look,

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Speaker 1: Grinder is an amazing company. UM I build a company

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Speaker 1: taken in public, but margins are always a challenge in

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Speaker 1: our on the auto business, and with Grinder, margins are

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Speaker 1: amazing and so that's obviously a very big difference. Grinder

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Speaker 1: is a really awesome business, but more importantly, it's a

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Speaker 1: really awesome mission. Right You're serving a community that's been

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Speaker 1: underserved and then uses this product in a really dramatic

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Speaker 1: way to connect And that mission to me is super

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Speaker 1: killing and I'm really excited to be UM to be

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Speaker 1: a part of it. Uh. And obviously Grinder has been

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Speaker 1: around for a long time since two thousand and nine.

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Speaker 1: The product, as we haven't really finally changed in that

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Speaker 1: time period. People have used it the same way for

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Speaker 1: for a long time, but the features that it offers

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Speaker 1: have obviously expanded. It's come from being just about sex

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Speaker 1: to being about dating, and now it's used that in

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Speaker 1: a lot of pub ways. And my goal, let's see,

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Speaker 1: I was going to be to try to continue nurture

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Speaker 1: this really incredible product um and the community that it

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Speaker 1: serves in the best way. We can talk to us

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Speaker 1: a little bit more about how Grinder is used globally,

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Speaker 1: because I think there's you know, one impression it is,

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Speaker 1: you know, quote unquote just a dating app, but it's

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Speaker 1: actually so much more. Yeah, I mean, in so many

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Speaker 1: there's so many other things. People use it for. Travels

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Speaker 1: and massive feature said that people use it for and

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Speaker 1: it's all, by the way organic. It's not like Grinders

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Speaker 1: built products to facilitate travel, but people logged into a

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Speaker 1: city they might be visiting to start talking to people

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Speaker 1: about where they should say, what they should do, where

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Speaker 1: they should um go out to dinner or go out

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Speaker 1: to have fun. So in a very organic way, people

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Speaker 1: use it for travel. Health information is another massive feature

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Speaker 1: and Grinder with the market pops epidemic right now, Grinder

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Speaker 1: has been very active in helping our user base understand

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Speaker 1: that there's a problem and where to get vaccines, how

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Speaker 1: to get them. There's even like a feature inside the

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Speaker 1: app to find out a way should go get a vaccine.

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Speaker 1: So people use Grinder in a ton of different ways.

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Speaker 1: One of the interesting things for me on the board

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Speaker 1: the last couple of months, we left one of the

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Speaker 1: very challenging countries UM to be operating in and to

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Speaker 1: be gay in UM recently because we just didn't feel comfortable.

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Speaker 1: And you know, we heard that so much feedback from

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Speaker 1: using in that country and and use in that country

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Speaker 1: pleading with us to come back. So the board with

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Speaker 1: us decides should we go back or not? And I

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Speaker 1: mean it's like a life wort deficio almost in some ways.

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Speaker 1: On the one hand, people want to use the product

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Speaker 1: to connect and it's super valuable. On the folk side,

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Speaker 1: we know that the state uses the product to try

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Speaker 1: to find people who are gay, And like which society

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Speaker 1: you kind of go on, right, you deny people product

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Speaker 1: that's really important to them, or do you allow them

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Speaker 1: to have the product at risk their security? Really tough issue.

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Speaker 1: I won't rebuild the country it's in because I don't

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Speaker 1: think that's appropriate. But like that kind of describes how

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Speaker 1: critical Grinder is to so many people, and this amazing

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Speaker 1: product that it is for that community. Now, you've gone

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Speaker 1: through one spack process with Shift, and I know you're

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Speaker 1: trying to get Grinder over the finish over the finish

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Speaker 1: line now, but how are you thinking about that given

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Speaker 1: pretty dreadful market dynamics out there and and a tough environment. Yeah,

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Speaker 1: it's I mean, spack is great in that kind of

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Speaker 1: situation because it's a guaranteed way to get the transaction

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Speaker 1: done right. You are not depending on market conditions. Um

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Speaker 1: and Grinder's partner for for the stock transaction is a

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Speaker 1: very strong stock. There's a for purchase agreement in the

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Speaker 1: transaction which insuresn't there's no need for any capital to

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Speaker 1: come into the transaction, and redemptions are not an issue.

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Speaker 1: The last many many of the most recent spects haven't

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Speaker 1: done well. That most spots have not done well, no question.

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Speaker 1: But there are about two dozen spacts in the last

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Speaker 1: twelve months are doing very well, and but they share

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Speaker 1: one trait. They're all profitable businesses. So Grinder kind of

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Speaker 1: falls into that bucket as well. It's a very profitable

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Speaker 1: business and no one is selling in this transaction, So

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Speaker 1: all the current owners of Grinder are going to roll

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Speaker 1: over and continue holding the business. UM, so we feel

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Speaker 1: pretty good about the transactions from that perspective, grind, I

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Speaker 1: mean a spost is the mechanism or getting the transaction

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Speaker 1: done so we can become a public company. I think

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Speaker 1: the outcome will be the same way that we've had

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Speaker 1: done a regular way at PO or a stock transaction.

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Speaker 1: You're one of very few openly gay CEOs, certainly as

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Speaker 1: it comes to public companies. Is there a precedent that

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Speaker 1: you want to set here or a message that you

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Speaker 1: want to send. I'm very fortunate and I think, look,

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Speaker 1: people should believe that anything is possible, right Like one

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Speaker 1: of my core values as an operator is that impossible

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Speaker 1: things are possible. And my whole life is almost an

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Speaker 1: example of that. Where I was born in the Soviet Union,

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Speaker 1: UM came to the U S as a as a

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Speaker 1: young teenager to go to prep school. Now this is

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Speaker 1: a second company. I'm going to take public incredible things

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Speaker 1: that are achievable as long as you work hard and UM.

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Speaker 1: You know, for those people who are you know, part

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Speaker 1: of the ludic community living in countries where they feel

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Speaker 1: like they're being marginalized or they can't be out, things

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Speaker 1: are going to get better. Because that's the direction that

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Speaker 1: the world is heading into kind of every day, and

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Speaker 1: we're really really fortunate to be living in a country

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Speaker 1: where we can be ourselves and not be under threat

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Speaker 1: all the time. And how are you thinking about monetization

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Speaker 1: and boosting the opportunities that Grinder has already explored. Subscriptions

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Speaker 1: and ads are of course the money makers. Yeah, we

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Speaker 1: make money in two ways. We have ads in the

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Speaker 1: product and we have subscriptions. Are percentage of users that

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Speaker 1: are paying uses is actually not that high, it's about

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Speaker 1: six percent versus you know, Bumbles at I think nine

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Speaker 1: percent and Matches at eighteen um, so we have a

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Speaker 1: huge you need to grow the paid user base. One

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Speaker 1: of the ways we're going to do that is by

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Speaker 1: building more adjacent features that people then want to pay for.

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Speaker 1: Grind has been behind in that regard. It's only recently

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Speaker 1: started to monetize its functionality and add new functionality. So

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Speaker 1: for example, we just recently launched boost, which has been

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Speaker 1: a very popular feature. Doing more things like that I

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Speaker 1: think will be really important. And then with ads, obviously

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Speaker 1: there's a huge oputy to have more relevant ads. When

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Speaker 1: we have ads that are relevant to our community, they're

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Speaker 1: actually very effective and they service the community really well,

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Speaker 1: for example with with health related ads, and so my

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Speaker 1: focus will be to ensure that the ad quality is

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Speaker 1: really good and it really enables the community use the

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Speaker 1: product in a in a good way if they don't

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Speaker 1: want to take her all right, George Harrison incoming, CEO

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Speaker 1: of Grinder, Thanks so much for stopping by. We'll keep watching.

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Speaker 1: Thank you for having me all right. Coming up, FedEx's

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Speaker 1: guidance springs doom and gloom to the markets and especially

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Speaker 1: commerce starcks. We're going to tell you more about that.

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Speaker 1: Next US is Bloomberg. One story you don't want to

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Speaker 1: miss in Bloomberg's Big Take this Thursday, about how a

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Speaker 1: Chinese spy tried to steal gees secret but got caught

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Speaker 1: by the US and gave the world an unprecedented glimpse

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Speaker 1: into China spy system. Here's how the arrest of a

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Speaker 1: burned out intelligence officer exposed an economic espionage machine. When

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Speaker 1: a Chinese spy was extradited to the US, the FBI

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Speaker 1: got his hands on a remarkable resource, his iPhone. It

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Speaker 1: shed valuable light on how Asia's largest economy steals top

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Speaker 1: secret technology. Chuian Jun was an agent of China's Minister

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Speaker 1: of State Security when he was arrested in Brussels. In

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Speaker 1: how could the FBI prove it well? On his iPhone

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Speaker 1: was an official form that listed his job as deputy

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Speaker 1: Division director at the MSS. It might as well have

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Speaker 1: said profession spy. Shoe's main job was stealing defense and

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Speaker 1: aviation innovations from firms such as General Electric. For instance,

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Speaker 1: a colleague distracted a British engineer over a banquet in Nanjing.

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Speaker 1: While she was upstairs in his hotel room copying the

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Speaker 1: content of his laptop, Shoe said he needs three hours

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Speaker 1: speeded up. Became the response between messages to seemingly extramarital lovers.

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Speaker 1: Shoe are specialists from China's top aviation companies. What sort

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Speaker 1: of intel they needed? Then set about cultivating the sources

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Speaker 1: who could provide it. One such source was a ge

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Speaker 1: engineer who would ultimately precipitate his downfall. After being rumbled

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Speaker 1: by the FBI, the engineer turned double agent and offered

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Speaker 1: to meet Sue at a cafe in Brussels. It was,

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Speaker 1: of course set up. En route to that fateful meeting,

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Speaker 1: Shoe messaged his wife that there was a USB stick

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Speaker 1: hidden at home for which should be given. The password

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Speaker 1: was something to happen to him, She responded, Oh my god,

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Speaker 1: don't scare me like this. The next day he was arrested.

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Speaker 1: He now resides in Ohio jail, facing up to sixty

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Speaker 1: years in prison. Quick takes alex web for that, and

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Speaker 1: of course you could check out the Big Take Thursday.

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Speaker 1: Here are some other stories were following. Shopify is now

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Speaker 1: changing its compensation practices to let staff decide how much

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Speaker 1: of their pay comes in cash versus equity, with the

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Speaker 1: ability to withdraw equity immediately. This is Volatility continues to

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Speaker 1: beat down shares of tech companies. The Canadian e commerce

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Speaker 1: firm saw its own share price fall this year, and

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Speaker 1: Google cloud making some changes, with plans to unfreeze hiring

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Speaker 1: by October, reversing a pause that was set back in July.

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Speaker 1: This according to Business Insider, which cited an internal memo

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Speaker 1: from Google Clouds Vice president of Technical Infrastructure Brad Calder,

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Speaker 1: saying then it must clarify its priorities. Welcome back to

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Speaker 1: Boomore Technology. I'm emily changing in San Francisco. The new

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Speaker 1: iPhone fourteen is out the latest generation of Apple's handset

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Speaker 1: in stores now in the high end pro coming in

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Speaker 1: at a thousand dollars base price. Apple isn't raising process

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Speaker 1: from last year this year, perhaps to counter the pain

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Speaker 1: of rising inflation, but still more customers pay up, are

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Speaker 1: at ludlow. Back in New York with the dates, will

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Speaker 1: they add that, yeah, I mean, this is a global

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Speaker 1: rollout of the iPhone fourteen, next generation of Apple watches.

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Speaker 1: But here in New York City, Apple CEO Tim Cook,

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Speaker 1: He's been in town, he's been on the Upper West side,

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Speaker 1: he's been on the East side, he's been on Fifth

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Speaker 1: Avenue meeting customers, and there seem to be excitement, there

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Speaker 1: seems to be demand. But the question the streets asking

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Speaker 1: will it fuel a global wave of upgrades? Will it

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Speaker 1: fuel a boost to Apple sales? Let's bring up this

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Speaker 1: pie chart, Mrs Director, because we need to contin actualize

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Speaker 1: how important the iPhone is in the context of overall sales.

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Speaker 1: It's more than right now. Apple was reserved the most

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Speaker 1: important new features, the biggest upgrades for that most expensive handset.

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Speaker 1: And you know, I've been talking all week about the

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Speaker 1: data for early orders or pre orders, which shows that

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Speaker 1: actually there is demand for that most expensive handset. The

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Speaker 1: other story we've been talking about is the evidence that

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Speaker 1: actually demand for consumer electronics is really slowing down. Now,

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Speaker 1: let's look at the numbers for iPhone sales over the

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Speaker 1: last few years. I'm just I'm going to walk all

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Speaker 1: the way over here, m and go straight to one.

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Speaker 1: That was an incredible year for Apple, right record iPhone sales.

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Speaker 1: The thing is, the early data also shows that the

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Speaker 1: demand for the highest price point handset with the nicest,

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Speaker 1: the fanciest, the most high spect features is actually outdoing

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Speaker 1: what we saw in one as well. So there's debate

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Speaker 1: about this. There's actually a guy who works at Bloomberg

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Speaker 1: Intelligence here in New York. I think you might be

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Speaker 1: about speech to him. He might not see it the

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Speaker 1: way that some of the streets sees it in terms

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Speaker 1: of this big wave of upgrades that's coming, but some

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Speaker 1: of the street does. All right, I'd love the thank you.

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Speaker 1: I want to continue this conversation with Carolyn and Milan

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Speaker 1: as of creative Strategies and our very own Bloomberg Intelligence

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Speaker 1: senior analyst on ra Grana, who covers Apple for US. UM.

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Speaker 1: Carolyn and I'll start with you, since we spoke to

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Speaker 1: last week from the Apple event we got your sort

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Speaker 1: of preview. Take there. Now that you've seen some of

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Speaker 1: this pre order data, how good does it look? It

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Speaker 1: doesn't surprise me that we see a skew of sales

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Speaker 1: towards the higher end of the portfolio. That's always the

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Speaker 1: case with pre orders. Usually the customers that pre order

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Speaker 1: our early tech early adopters higher income level, So you

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Speaker 1: always see that, and I always warrant people not to

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Speaker 1: judge the kind of a long tail of the rest

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Speaker 1: of a portfolio just by pre orders. I think what

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Speaker 1: Apple has done though this year with the pro line

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Speaker 1: is appealing to a broader audience than just the camera lovers.

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Speaker 1: So I think that Dynamic Island really is refreshing the

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Speaker 1: look and feel of that higher and family to to

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Speaker 1: appeal to a broader consumer audience. A wag. I know

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Speaker 1: Apple didn't raise the prices, but we're in a downturn.

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Speaker 1: Everybody's hurting. We're paying more for gas and groceries and

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Speaker 1: everything else. Are We're gonna upgrade our devices right now,

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Speaker 1: so you know, our our cake is that Apple runs

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Speaker 1: on about the three point six or three points seventy

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Speaker 1: year refresh cycle, So if you take the big installed base,

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Speaker 1: they have, they're gonna sell more than two in a

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Speaker 1: million units every year. It doesn't matter what year it is.

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Speaker 1: But for us, Apple, iPhone fourteen does not move the needle.

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Speaker 1: We think it's going to be the next year's model

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Speaker 1: with bigger hardware changes. But I do agree that the

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Speaker 1: Pro model is good. It has a better camera. There

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Speaker 1: will be some people who will move it. And and remember,

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Speaker 1: people who can afford to buy a thousand dollar phones,

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Speaker 1: you know, the cash prices and things don't really bother

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Speaker 1: them as much. So Carolina, what else are you watching here?

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Speaker 1: I mean, FedEx just cut its own guidance, bringing Amazon

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Speaker 1: down with it, and there are broader warnings here about

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Speaker 1: what's happening in the global economy. I think from an

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Speaker 1: Apple perspective, would be interesting if the skew to the

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Speaker 1: Pro and also the fourteen plus models is going to

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Speaker 1: impact their average selling price, so we might see a

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Speaker 1: higher selling price compared to last year before we see

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Speaker 1: a difference in volume. And then the other part is

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Speaker 1: as the early adopters kind of die off as the

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Speaker 1: cycle continues, to see how the previous models are going

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Speaker 1: to impact the overall sales and then beyond iPhone, of course,

431
00:23:48,440 --> 00:23:51,560
Speaker 1: we're all looking at Apple Watch, both at the very

432
00:23:51,560 --> 00:23:55,600
Speaker 1: low end with DSc for more people are entering the ecosystem,

433
00:23:55,880 --> 00:23:58,639
Speaker 1: and then the very high end with the ultra model

434
00:23:58,800 --> 00:24:03,120
Speaker 1: at eight hundred dollar price point. What do you read

435
00:24:03,160 --> 00:24:08,920
Speaker 1: into this sex data? They specifically called out Asia and Europe,

436
00:24:09,000 --> 00:24:12,080
Speaker 1: and of course Apple is a global company. Yeah, and

437
00:24:12,119 --> 00:24:13,600
Speaker 1: this is part of the note that you wrote a

438
00:24:13,600 --> 00:24:16,359
Speaker 1: month ago. I said, list for Apple, fort of the

439
00:24:16,359 --> 00:24:19,159
Speaker 1: sales come from Europe and China combined, and those are

440
00:24:19,160 --> 00:24:21,520
Speaker 1: the regions that are really struggling. In fact, I would

441
00:24:21,520 --> 00:24:24,280
Speaker 1: say Europe is going to have bigger issues going in

442
00:24:24,040 --> 00:24:26,879
Speaker 1: the in the near term with with fuel prices and

443
00:24:27,160 --> 00:24:29,320
Speaker 1: energy prices going up, so which is one of the

444
00:24:29,400 --> 00:24:31,960
Speaker 1: reasons we said that you over here, we don't see

445
00:24:32,000 --> 00:24:34,760
Speaker 1: iphold sales growing more than one to two percent. Now

446
00:24:34,800 --> 00:24:36,560
Speaker 1: for a lot of people, that may be bad things,

447
00:24:36,560 --> 00:24:38,679
Speaker 1: but in all, honestly, it's not bad at all. In

448
00:24:38,720 --> 00:24:41,080
Speaker 1: a downward market, you know you're not going to see

449
00:24:41,119 --> 00:24:44,400
Speaker 1: negative sales that compared to last year. So all in all,

450
00:24:44,480 --> 00:24:47,280
Speaker 1: I think it's a it's a good cycle, I mean,

451
00:24:47,359 --> 00:24:49,399
Speaker 1: but not as strong as next year. Next year, we

452
00:24:49,400 --> 00:24:52,000
Speaker 1: think it's going to be a much much bigger refresh

453
00:24:52,080 --> 00:24:55,640
Speaker 1: for the iPhone. Now, as far as the watch is concerned,

454
00:24:55,680 --> 00:24:57,680
Speaker 1: it's a beautiful watch. They hunt it. All of watch

455
00:24:57,680 --> 00:25:00,600
Speaker 1: is amazing. But fact be speaking, there was thinks really

456
00:25:00,600 --> 00:25:03,240
Speaker 1: don't move the financial need of Apple. Callin and does

457
00:25:03,240 --> 00:25:06,800
Speaker 1: that jive with your projections? It does. I think that

458
00:25:06,920 --> 00:25:10,800
Speaker 1: next year, for sure, the upgrade cycle will be higher,

459
00:25:10,880 --> 00:25:13,399
Speaker 1: not just because of a hardware, but there's there's going

460
00:25:13,480 --> 00:25:16,920
Speaker 1: to be a step forward in the processing powers well.

461
00:25:17,080 --> 00:25:20,040
Speaker 1: So I think that that, especially for the markets that

462
00:25:20,160 --> 00:25:23,359
Speaker 1: seem to be struggling more this year from a financial perspective,

463
00:25:23,400 --> 00:25:25,720
Speaker 1: chine in particularly that pays a lot of attention to

464
00:25:25,960 --> 00:25:28,359
Speaker 1: the inside of the device, not just the look and

465
00:25:28,400 --> 00:25:30,960
Speaker 1: feel of the outside, That will matter a lot. M

466
00:25:31,400 --> 00:25:34,679
Speaker 1: and I tend to agree that generally, you know, while

467
00:25:34,920 --> 00:25:38,280
Speaker 1: the sales of the other products don't make a huge

468
00:25:38,320 --> 00:25:41,639
Speaker 1: difference to the bottom line from a from a revenue perspective,

469
00:25:41,760 --> 00:25:44,840
Speaker 1: it does tie in more of the customers, which longer

470
00:25:45,000 --> 00:25:48,600
Speaker 1: term is what Apple will benefit from and more loyal,

471
00:25:48,920 --> 00:25:52,959
Speaker 1: more unified user base. All right, obviously, so much to

472
00:25:53,040 --> 00:25:55,879
Speaker 1: continue to follow when it comes to Apple utterag. I

473
00:25:55,880 --> 00:25:58,439
Speaker 1: do want to ask you about another story we've been following.

474
00:25:58,480 --> 00:26:01,920
Speaker 1: You've got a new note out on this, Adobe buying

475
00:26:02,119 --> 00:26:05,679
Speaker 1: Figma for twenty billion dollars. Of course, Figma was a

476
00:26:05,840 --> 00:26:09,120
Speaker 1: you know, pretty big competitive threat to Adobe. I wonder

477
00:26:09,160 --> 00:26:12,159
Speaker 1: if this is kind of an admission of defeat a

478
00:26:12,200 --> 00:26:17,600
Speaker 1: bit either way. That is a huge, huge number. Is

479
00:26:17,640 --> 00:26:20,920
Speaker 1: this a smart deal? So one of the things we said,

480
00:26:21,000 --> 00:26:23,640
Speaker 1: you know, technology was it may be a smart deal,

481
00:26:23,680 --> 00:26:25,399
Speaker 1: but I think this is the wrong time to do it.

482
00:26:25,840 --> 00:26:29,520
Speaker 1: We know, software valuations have created since last November. And

483
00:26:29,600 --> 00:26:31,880
Speaker 1: for a company that was valued at ten billion last

484
00:26:31,920 --> 00:26:35,040
Speaker 1: summer to buy them for twenty billion, I mean, nobody's

485
00:26:35,119 --> 00:26:37,640
Speaker 1: liking get the I think they've lost what thirty five

486
00:26:37,680 --> 00:26:40,600
Speaker 1: billion in market gap right now for a company that's

487
00:26:40,600 --> 00:26:43,480
Speaker 1: going to generate about four million in revenue for next year.

488
00:26:43,560 --> 00:26:46,480
Speaker 1: So I think they really need to think hard and long.

489
00:26:46,560 --> 00:26:49,200
Speaker 1: That investors have clearly made a point that they are

490
00:26:49,240 --> 00:26:52,959
Speaker 1: looking for margin expansion, you know, profit growth, even if

491
00:26:52,960 --> 00:26:55,280
Speaker 1: it grows slows down a little bit so much. And factually,

492
00:26:55,280 --> 00:26:57,840
Speaker 1: you know, in our view, Adobe is such a widely

493
00:26:58,000 --> 00:27:01,720
Speaker 1: diversified company with an installed it's very large of you know,

494
00:27:01,760 --> 00:27:04,639
Speaker 1: creative products, and if in one idea of the product

495
00:27:04,720 --> 00:27:07,600
Speaker 1: is getting competition. It's not a big deal to me, frankly,

496
00:27:07,920 --> 00:27:10,959
Speaker 1: all right on a Ronald Bloomberg intelligence along with Caroline

497
00:27:10,960 --> 00:27:16,119
Speaker 1: and Milan Aisy principle analyst at Creative Strategies, Thank you both,

498
00:27:16,600 --> 00:27:19,960
Speaker 1: Um all stuff we're gonna continue to follow well. It

499
00:27:20,080 --> 00:27:23,520
Speaker 1: is potentially a worrying sign for the global economy. FedEx

500
00:27:23,560 --> 00:27:27,480
Speaker 1: has withdrawn it's earnings forecast due to worsening business conditions.

501
00:27:27,520 --> 00:27:30,800
Speaker 1: As we mentioned earlier the package delivery giant, pointing to

502
00:27:30,880 --> 00:27:35,440
Speaker 1: weakness in Asia and challenges in Europe. FedEx taking immediate

503
00:27:35,520 --> 00:27:40,320
Speaker 1: steps to cut costs, including parking some aircraft, cutting workers hours,

504
00:27:40,400 --> 00:27:46,840
Speaker 1: and closing more than nine FedEx office locations coming up

505
00:27:47,000 --> 00:27:49,560
Speaker 1: as we enter a post etherory emerged world, what happens

506
00:27:49,600 --> 00:27:52,800
Speaker 1: next and what's a long term view we'll talk about that.

507
00:27:53,160 --> 00:28:13,280
Speaker 1: This is Bloomberg with the merge now complete, Let's take

508
00:28:13,320 --> 00:28:16,960
Speaker 1: a look at how significant this successful update was for

509
00:28:17,000 --> 00:28:20,240
Speaker 1: the community and what comes next. Joe Loud, co founder

510
00:28:20,240 --> 00:28:23,080
Speaker 1: of Alchemy, a web three development platform to build and

511
00:28:23,200 --> 00:28:26,800
Speaker 1: scale decentralized apps, is with us now. Joe, thank you

512
00:28:26,840 --> 00:28:30,040
Speaker 1: for joining us. So it seems like everything went according

513
00:28:30,080 --> 00:28:32,439
Speaker 1: to plan. What are your key takeaways? Aside from some

514
00:28:33,040 --> 00:28:38,120
Speaker 1: pretty funny pandamimes. Hi, Emily, thanks for having me today,

515
00:28:38,280 --> 00:28:40,200
Speaker 1: and yeah, the merge happened a couple of nights ago.

516
00:28:40,600 --> 00:28:43,120
Speaker 1: Happened at midnight. Our entire team stayed up to watch it,

517
00:28:43,200 --> 00:28:45,960
Speaker 1: as did a lot of the Ethereum community. I think

518
00:28:46,000 --> 00:28:49,680
Speaker 1: the biggest takeaway was this was a monumental effort. It's

519
00:28:49,720 --> 00:28:53,000
Speaker 1: part of a year's long road map UM many years long,

520
00:28:53,080 --> 00:28:57,680
Speaker 1: multi year long road map by hundreds of hundreds of stakeholders,

521
00:28:57,720 --> 00:29:01,640
Speaker 1: and there's not one single centralized decision maker or anything

522
00:29:01,680 --> 00:29:03,560
Speaker 1: like that. So the fact that it all came together

523
00:29:03,680 --> 00:29:07,240
Speaker 1: as it did, UH super smoothly is incredible. I think

524
00:29:07,480 --> 00:29:10,560
Speaker 1: I would like in the merge to uh to swapping

525
00:29:10,560 --> 00:29:13,000
Speaker 1: out the engine of a plane that's already in the air.

526
00:29:13,040 --> 00:29:16,160
Speaker 1: So you have the Ethereum blockchain. It's a multi hundred

527
00:29:16,200 --> 00:29:19,080
Speaker 1: billion dollar ecosystem UM and the fact that they're able

528
00:29:19,120 --> 00:29:21,600
Speaker 1: to keep it live, keep it working, and swap out

529
00:29:21,640 --> 00:29:25,440
Speaker 1: essentially one piece of the core and have have no

530
00:29:25,520 --> 00:29:29,880
Speaker 1: hiccups is incredible. What does this actually mean for Alchemy's ecosystem,

531
00:29:30,280 --> 00:29:33,120
Speaker 1: that's a great question. So Alchemy, for those that don't know,

532
00:29:33,600 --> 00:29:36,720
Speaker 1: UM is a blockchain developer platform. What that means you

533
00:29:36,720 --> 00:29:38,960
Speaker 1: can think of us as the Amazon Web Services for

534
00:29:39,040 --> 00:29:41,480
Speaker 1: blockchain and web three. What it means is we help

535
00:29:41,520 --> 00:29:45,520
Speaker 1: developers and companies build applications much better by providing them

536
00:29:45,560 --> 00:29:48,240
Speaker 1: a developer platform to build on top load. So we

537
00:29:48,280 --> 00:29:51,960
Speaker 1: started the company about five years ago. Five years ago,

538
00:29:52,040 --> 00:29:54,960
Speaker 1: we've grown extremely rapidly in just the last few years.

539
00:29:55,160 --> 00:29:57,720
Speaker 1: Today we power about a hundred and fifty billion dollars

540
00:29:57,720 --> 00:30:01,400
Speaker 1: in transaction volume UM, a big chunk of the top

541
00:30:01,440 --> 00:30:05,240
Speaker 1: ethereum um, the top companies in blockchain and Ethereum and

542
00:30:05,280 --> 00:30:08,000
Speaker 1: blockchain in general. UH. And we also work with a

543
00:30:08,040 --> 00:30:11,000
Speaker 1: lot of the biggest companies that are moving into the

544
00:30:11,000 --> 00:30:14,480
Speaker 1: blockchain and web through space today like Meta, Adobe, Shopify,

545
00:30:14,640 --> 00:30:17,760
Speaker 1: and Stripe. What the merge means for Alchemy, So we're

546
00:30:17,760 --> 00:30:20,800
Speaker 1: a developer platform. Our goal is to make sure developers

547
00:30:20,800 --> 00:30:23,880
Speaker 1: always have access to the infrastructure that they need to

548
00:30:23,960 --> 00:30:28,040
Speaker 1: build applications that they need. The merge basically upgraded Ethereum.

549
00:30:28,480 --> 00:30:32,800
Speaker 1: Upgrade Ethereum to um to basically allow to allow the

550
00:30:32,800 --> 00:30:35,840
Speaker 1: etheroreum to allow the network to run on proof of

551
00:30:35,880 --> 00:30:38,560
Speaker 1: stake instead of proof of work. For us, it means

552
00:30:38,600 --> 00:30:42,160
Speaker 1: making sure our services are always up so that developers

553
00:30:42,160 --> 00:30:44,440
Speaker 1: can have access to them, and that's exactly what we did.

554
00:30:44,600 --> 00:30:47,240
Speaker 1: So of course we've been talking about the merge for

555
00:30:47,520 --> 00:30:51,200
Speaker 1: years and now it's finally happened. What is the cryptome

556
00:30:51,240 --> 00:30:56,040
Speaker 1: blockchain community buzzing about now what's next? So the merge

557
00:30:56,120 --> 00:30:59,160
Speaker 1: is just the first step and again in multi years

558
00:30:59,200 --> 00:31:02,400
Speaker 1: long road map, UH, this first piece was about moving

559
00:31:02,440 --> 00:31:05,520
Speaker 1: from proof for work, which uses energy, to proof of steak,

560
00:31:05,760 --> 00:31:09,120
Speaker 1: which allows which allows users to stake their tokens on

561
00:31:09,160 --> 00:31:11,400
Speaker 1: the network the value itself on the network. So that's

562
00:31:11,400 --> 00:31:15,760
Speaker 1: a something like a ninety nine and nine reduction UH

563
00:31:15,800 --> 00:31:18,800
Speaker 1: in energy users, for the blockchain, for the theory of blockchain,

564
00:31:18,840 --> 00:31:21,560
Speaker 1: which is incredible. UM. What's next is going to be

565
00:31:21,600 --> 00:31:24,640
Speaker 1: a lot of investments into scaling. So there's been a

566
00:31:24,680 --> 00:31:28,240
Speaker 1: lot of excitement. So Intherium as a network is UM

567
00:31:28,280 --> 00:31:30,640
Speaker 1: it's just it's you know, just getting started. It's gonna

568
00:31:30,680 --> 00:31:32,840
Speaker 1: get a lot faster, it's gonna get a lot cheaper,

569
00:31:32,920 --> 00:31:35,440
Speaker 1: and that's where a lot of the focus is going forward.

570
00:31:35,680 --> 00:31:38,440
Speaker 1: The merge was the first step to unlocking the ability

571
00:31:38,480 --> 00:31:40,680
Speaker 1: to perform some of these other technical upgrades in the

572
00:31:40,720 --> 00:31:43,600
Speaker 1: future that make Ethereum faster and cheaper, and so those

573
00:31:43,640 --> 00:31:45,680
Speaker 1: are going to be the areas of focus next well,

574
00:31:45,720 --> 00:31:48,120
Speaker 1: and it needs to get faster and cheaper in order

575
00:31:48,240 --> 00:31:52,400
Speaker 1: for you know, apps, killer apps, if you will, to

576
00:31:52,520 --> 00:31:55,720
Speaker 1: have that killer impact. But I still hear people say

577
00:31:55,760 --> 00:31:58,560
Speaker 1: that killer app for crypto hasn't been made yet. What

578
00:31:58,600 --> 00:32:01,680
Speaker 1: do you think that is? That's a that's a really

579
00:32:01,680 --> 00:32:04,160
Speaker 1: great question, Emily Um, and that's something that everyone in

580
00:32:04,160 --> 00:32:06,960
Speaker 1: this space is always working towards. I think the thing

581
00:32:07,040 --> 00:32:11,800
Speaker 1: that's really interesting is all technologies start out slow, inefficient

582
00:32:11,960 --> 00:32:14,520
Speaker 1: and expensive. If you look at the Internet back in

583
00:32:14,560 --> 00:32:17,320
Speaker 1: the nineties, when we're using Dala, you couldn't even load

584
00:32:17,360 --> 00:32:19,360
Speaker 1: a picture. The picture of like load over a couple

585
00:32:19,360 --> 00:32:21,760
Speaker 1: of minutes, right in pieces on a screen. But you

586
00:32:21,840 --> 00:32:24,360
Speaker 1: fast forward to today and not only do we have pictures,

587
00:32:24,640 --> 00:32:27,720
Speaker 1: we have video, we have YouTube, we have TikTok. Something

588
00:32:27,760 --> 00:32:29,880
Speaker 1: like this, you and me talking on a live stream

589
00:32:29,920 --> 00:32:33,840
Speaker 1: would be unimaginable if you zoom back, and so I

590
00:32:33,880 --> 00:32:36,680
Speaker 1: would look at ethereum and more widely the web three

591
00:32:36,720 --> 00:32:40,360
Speaker 1: blockching ecosystem with the same lens. It's just an early space.

592
00:32:40,560 --> 00:32:42,800
Speaker 1: It's getting started. But what's gonna happen is you have

593
00:32:42,880 --> 00:32:45,680
Speaker 1: upgrades like the merge, which makes the technology better. We

594
00:32:45,760 --> 00:32:48,920
Speaker 1: have more developers build more applications, That in term drives

595
00:32:48,960 --> 00:32:51,680
Speaker 1: more investment into making the technology even better, and so

596
00:32:51,840 --> 00:32:54,040
Speaker 1: on and so forth, and you get better and better

597
00:32:54,080 --> 00:32:58,000
Speaker 1: and better applications, and eventually killer application emerges. We're already

598
00:32:58,000 --> 00:33:01,320
Speaker 1: seeing a lot of excitement around not just docurrencies stores

599
00:33:01,320 --> 00:33:05,120
Speaker 1: of value, but also gaming and creator monetization and things

600
00:33:05,160 --> 00:33:07,400
Speaker 1: like that. And I think that's just the beginning. Alchemy

601
00:33:07,440 --> 00:33:11,160
Speaker 1: has its own vcar and grants program, and I'm curious

602
00:33:11,200 --> 00:33:13,240
Speaker 1: what kind of projects you're backing right now. How the

603
00:33:13,280 --> 00:33:18,960
Speaker 1: macro environment, a dreadful market situation is impacting your decision decisions,

604
00:33:18,960 --> 00:33:22,600
Speaker 1: and whether valuations are they coming down That's a great question.

605
00:33:22,640 --> 00:33:24,719
Speaker 1: So I think there are valuations in the market, and

606
00:33:24,720 --> 00:33:27,560
Speaker 1: that obviously has changed over the lass six months. The

607
00:33:27,640 --> 00:33:30,719
Speaker 1: really exciting thing about our ecosystem is developers have not

608
00:33:30,800 --> 00:33:33,400
Speaker 1: stopped building. And the thing that's important to something like

609
00:33:33,720 --> 00:33:37,080
Speaker 1: the blockchain. If your ecosystem is as long as developers

610
00:33:37,080 --> 00:33:39,640
Speaker 1: are building, new applications will come out that will bring

611
00:33:39,640 --> 00:33:42,480
Speaker 1: in more users, It will bring in more developers the

612
00:33:42,760 --> 00:33:45,440
Speaker 1: UH and the ecosystem, and the technology gets better. So

613
00:33:45,880 --> 00:33:49,000
Speaker 1: our ventures are mas seen actually a tremendous amount of growth.

614
00:33:49,000 --> 00:33:52,240
Speaker 1: It's I think we're seeing three quarter over quarter growth

615
00:33:52,240 --> 00:33:54,720
Speaker 1: in terms of fuel velocity. We're seeing more and more

616
00:33:54,720 --> 00:33:59,040
Speaker 1: people coming from traditional technology and other other other industries

617
00:33:59,080 --> 00:34:01,800
Speaker 1: into the space to work on brand new things. UM,

618
00:34:01,840 --> 00:34:04,400
Speaker 1: and it's been very very exciting. We're also we also

619
00:34:04,440 --> 00:34:07,200
Speaker 1: have educational properties that are aimed at bringing people into

620
00:34:07,200 --> 00:34:09,919
Speaker 1: the space and teaching them how to develop in Web

621
00:34:09,960 --> 00:34:12,040
Speaker 1: three for free, and we're seeing lots of growth there.

622
00:34:12,120 --> 00:34:14,279
Speaker 1: So all across the board, I think it's been a

623
00:34:14,360 --> 00:34:18,000
Speaker 1: very very positive outlook. Um, we're actually out of time, Joe,

624
00:34:18,160 --> 00:34:22,439
Speaker 1: but I so appreciate your very thoughtful insights there. We'll

625
00:34:22,560 --> 00:34:25,040
Speaker 1: we'll have to do this again, um as the market

626
00:34:25,040 --> 00:34:28,319
Speaker 1: continues to evolve. Alchemy co founder Joe Lau, thank you

627
00:34:28,440 --> 00:34:41,760
Speaker 1: so much for stopping by. Disney has pulled the upcoming

628
00:34:41,800 --> 00:34:45,520
Speaker 1: Star Wars film Rogue Squadron from its release calendar, a

629
00:34:45,560 --> 00:34:48,800
Speaker 1: disappointment for theaters still trying to recover from the pandemic.

630
00:34:48,880 --> 00:34:52,080
Speaker 1: Joining us Now Bloomberg's Chris Paul Mary So, Chris sounds

631
00:34:52,080 --> 00:34:54,000
Speaker 1: like they're still going to make the film, but it's

632
00:34:54,040 --> 00:34:57,439
Speaker 1: not coming out next year. Right, that's right, And it's

633
00:34:57,480 --> 00:34:59,640
Speaker 1: your reflection of a lot of things going on the

634
00:34:59,719 --> 00:35:02,440
Speaker 1: movie business. One of them is, of course, the pandemic.

635
00:35:02,520 --> 00:35:05,440
Speaker 1: It's hard to get things up and running again. And

636
00:35:05,440 --> 00:35:08,520
Speaker 1: and you've got a director in this movie, Patty Jenkins,

637
00:35:08,560 --> 00:35:11,759
Speaker 1: who's uh done the Wonder Woman films. She's working on

638
00:35:11,800 --> 00:35:14,600
Speaker 1: a third one of those that's also not started production yet.

639
00:35:14,840 --> 00:35:18,440
Speaker 1: So scheduling something of this magnitude is difficult. Of course,

640
00:35:18,520 --> 00:35:20,560
Speaker 1: this is Star Wars and you want to get it right.

641
00:35:21,520 --> 00:35:24,160
Speaker 1: You broke the news three years ago in an interview

642
00:35:24,200 --> 00:35:26,879
Speaker 1: with them CEO Bob Igers, and uh, you know, there

643
00:35:26,880 --> 00:35:29,319
Speaker 1: were some disappointment when when they rushed out a lot

644
00:35:29,360 --> 00:35:33,160
Speaker 1: of Star Wars films initially and they put the films

645
00:35:33,200 --> 00:35:36,600
Speaker 1: on a hiatus. That the last one was in two

646
00:35:36,600 --> 00:35:39,560
Speaker 1: thousand nineteen, and so there's a lot of pressure to

647
00:35:39,560 --> 00:35:41,720
Speaker 1: make sure that they get this right. But I'm told

648
00:35:41,760 --> 00:35:44,160
Speaker 1: that this film is still in development, as are some

649
00:35:44,280 --> 00:35:47,920
Speaker 1: other Star Wars films. All right, Um, not good for

650
00:35:48,040 --> 00:35:52,880
Speaker 1: theaters though, I mean, were they really counting on this one? Yeah,

651
00:35:52,920 --> 00:35:55,160
Speaker 1: I mean you can even a bad Star Wars films,

652
00:35:56,239 --> 00:35:59,680
Speaker 1: there's a lot of money, a billion dollar box office. Um,

653
00:35:59,719 --> 00:36:02,640
Speaker 1: it's uh, you know, it's a story we keep hearing.

654
00:36:03,040 --> 00:36:05,759
Speaker 1: Theaters are coming back, theaters are coming back. Reality is,

655
00:36:05,800 --> 00:36:07,719
Speaker 1: the industry is probably to do eight and a half

656
00:36:07,760 --> 00:36:10,520
Speaker 1: billion dollars this year. The Pink a few years ago

657
00:36:10,640 --> 00:36:14,879
Speaker 1: was over eleven billions. So it's it's still it's still

658
00:36:14,920 --> 00:36:16,520
Speaker 1: far from where it was. You know, you had some

659
00:36:16,560 --> 00:36:19,880
Speaker 1: big movies this year. Top Gun obviously was huge, But

660
00:36:19,960 --> 00:36:22,640
Speaker 1: they're really counting on these big tentpoles as they're as

661
00:36:22,680 --> 00:36:25,120
Speaker 1: they're called to to drive people to theaters, and Star

662
00:36:25,160 --> 00:36:30,040
Speaker 1: Wars is certainly one of them. Well, it's in keeping

663
00:36:30,120 --> 00:36:34,560
Speaker 1: with the story that you just wrote called the bad

664
00:36:34,600 --> 00:36:37,560
Speaker 1: news in Hollywood is arriving almost daily. At least that's

665
00:36:37,560 --> 00:36:42,439
Speaker 1: the opening line. So what other bad news are we hearing? Well,

666
00:36:42,480 --> 00:36:45,200
Speaker 1: you know, there's been this whole rethinking of the streaming

667
00:36:45,239 --> 00:36:48,440
Speaker 1: business for years. Everyone was following the sort of Netflix

668
00:36:48,520 --> 00:36:51,920
Speaker 1: model of it's all about signing up subscribers, spending a

669
00:36:51,960 --> 00:36:55,080
Speaker 1: ton of money on movies and TV shows and you know,

670
00:36:55,160 --> 00:36:58,799
Speaker 1: the business will revenue and profits will follow. That all

671
00:36:58,840 --> 00:37:01,640
Speaker 1: got reset of this year. Netflix, Uh, you know, as

672
00:37:01,719 --> 00:37:05,560
Speaker 1: we've reported as a low subscribers and so all of

673
00:37:05,600 --> 00:37:09,320
Speaker 1: the stocks in the entertainment business have collapsed. Uh, and

674
00:37:09,480 --> 00:37:11,880
Speaker 1: everyone's now focused on what are we gonna make money

675
00:37:11,960 --> 00:37:14,640
Speaker 1: off of our street business? Many of them are losing

676
00:37:14,680 --> 00:37:18,120
Speaker 1: billions of dollars and so we've seen, you know, particularly

677
00:37:18,120 --> 00:37:20,600
Speaker 1: in Netflix and Warner Brothers, which just did a big

678
00:37:20,640 --> 00:37:26,279
Speaker 1: merger with Discovery, big cutbacks and staffing, the canceling projects.

679
00:37:26,640 --> 00:37:31,520
Speaker 1: Everyone's dialing back, uh you know, the budgets for TV series. Uh,

680
00:37:31,560 --> 00:37:34,160
Speaker 1: and things are just sort of languishing as everyone sort

681
00:37:34,160 --> 00:37:36,360
Speaker 1: of weights to see how this all plays out on

682
00:37:36,400 --> 00:37:44,160
Speaker 1: Wall Street. Um. Well, on that uplifting note, what are

683
00:37:44,160 --> 00:37:48,600
Speaker 1: you watching this weekend? But well to pivot back to

684
00:37:48,640 --> 00:37:51,560
Speaker 1: Star Wars even though the and I this, you know,

685
00:37:51,880 --> 00:37:54,200
Speaker 1: their fourth one of the TV series is coming out

686
00:37:54,280 --> 00:37:58,359
Speaker 1: next weekend or uh and so far looks pretty good.

687
00:37:58,440 --> 00:38:02,240
Speaker 1: And gosh, I am really in the Drones House of Dragon.

688
00:38:02,280 --> 00:38:07,239
Speaker 1: It's terrific. Okay, I'm liking House of Dragons too. I'm

689
00:38:07,239 --> 00:38:10,160
Speaker 1: excited for Sunday, Chris, Paul Mary always good to have you,

690
00:38:10,719 --> 00:38:14,160
Speaker 1: um and happy Friday. Everyone to have a wonderful weekend. Uh.

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00:38:14,560 --> 00:38:17,399
Speaker 1: That does it for this edition of Bloomberg Technology. I'm

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Speaker 1: Emily Drag in San Francisco. This is Bloomberg,