WEBVTT - Netflix's Earnings and Ramp's Fundraise 0:00:01.960 --> 0:00:06.279 From Mahard where Innovation, money and power Collie in Silicon 0:00:06.360 --> 0:00:11.000 Vallet NBN. This is Bloomberg Technology with Caroline Hyde. 0:00:10.720 --> 0:00:11.640 And Ed Ludlow. 0:00:25.920 --> 0:00:29.040 I met Ludlow in San Francisco. Caroline Hyde is off today. 0:00:29.160 --> 0:00:31.920 This is Bloomberg Technology coming up. We have full market 0:00:31.920 --> 0:00:36.600 coverage ahead as investors scale back on geopolitical concerns, with 0:00:36.720 --> 0:00:38.120 stocks bouncing off their lows. 0:00:38.120 --> 0:00:39.640 Plus Netflix shares. 0:00:39.360 --> 0:00:42.760 Full after a disappointing revenue outlook and plans to stop 0:00:42.800 --> 0:00:47.159 reporting its subscriber numbers. Details to come, and financial services 0:00:47.200 --> 0:00:50.640 platform Ramp raises an additional one hundred and fifty million 0:00:50.680 --> 0:00:53.840 dollars to reach a seven point six billion dollar valuation 0:00:54.200 --> 0:00:57.640 with new backup coastal adventures. We sit down exclusively with 0:00:57.760 --> 0:00:59.880 CEO Eric Lyman later this hour. 0:01:00.360 --> 0:01:02.760 Let's get to those markets. We know the themes. 0:01:03.360 --> 0:01:08.199 Geopolitical concern kind of some caution, if not risk off 0:01:08.240 --> 0:01:13.720 mentality Israel with a muted retaliatory strike against Iran. 0:01:13.760 --> 0:01:16.240 We will go to DC in just a moment and. 0:01:16.200 --> 0:01:19.920 Discuss the politics of it and operationally what's happening nas 0:01:19.959 --> 0:01:22.840 that one hundred is down a full percentage point. Tech 0:01:23.319 --> 0:01:25.720 is actually where there is the most downward pressure right now. 0:01:25.760 --> 0:01:27.039 There are other stories. 0:01:26.640 --> 0:01:28.959 Within that, and on the board you'll see names like 0:01:29.000 --> 0:01:32.160 Tesla and Netflix. Tesla with a cybertruck recor I'll give 0:01:32.160 --> 0:01:34.840 you the details later in the program. Netflix had a 0:01:34.920 --> 0:01:38.200 mega start to the year, but the investor base is 0:01:38.240 --> 0:01:41.360 spooked by its outlook for the future and how it 0:01:41.400 --> 0:01:42.320 plans to communicate. 0:01:42.360 --> 0:01:44.040 I'm also looking at crude. 0:01:44.080 --> 0:01:47.800 We did see oil move higher based on what happened 0:01:48.000 --> 0:01:50.960 in the Middle East. That's not hugely a surprise. Let's 0:01:50.960 --> 0:01:54.160 get to the top story. Israel launched a retaliatory strike 0:01:54.240 --> 0:01:57.320 on Iran less than a week after Tehran's rocket and 0:01:57.400 --> 0:02:02.080 drone barrage. Iranian media appeared to downplay the incident in 0:02:02.120 --> 0:02:05.720 the hours that followed the initial reports. For more, let's 0:02:05.720 --> 0:02:09.160 get out to Washington, DC and Bloomberg Balance of Power 0:02:09.200 --> 0:02:10.560 host Kaylee Liones. 0:02:11.280 --> 0:02:12.280 This is the framing. 0:02:12.360 --> 0:02:16.400 It is a retaliation that muted and seems to be 0:02:16.600 --> 0:02:20.480 that Israel listened to the United States who were urging 0:02:20.520 --> 0:02:23.040 them to show restraint. 0:02:23.360 --> 0:02:25.880 Yeah, not just the United States, but other allies and 0:02:25.919 --> 0:02:28.440 partners as well, including officials from the UK and Germany, 0:02:28.440 --> 0:02:31.000 which actually made a trip to Israel earlier this week. 0:02:31.040 --> 0:02:34.200 To encourage Prime Minister Netanyahu to have restraint here in 0:02:34.240 --> 0:02:37.520 the response to that unprecedented attack we saw Aron conducting 0:02:37.560 --> 0:02:39.359 over last weekend. More, of course, the more than three 0:02:39.440 --> 0:02:42.679 hundred missiles and drones sent Israel's way were largely intercepted 0:02:42.880 --> 0:02:45.920 by air defenses by not just Israel and other allies. 0:02:45.919 --> 0:02:48.120 Now RNY and media have confirmed that there was a 0:02:48.200 --> 0:02:53.720 drone attack in in Safon, where there was a military operation. However, 0:02:54.200 --> 0:02:57.480 it did not actually hit any nuclear facilities, according to 0:02:57.520 --> 0:02:59.679 our understanding at the moment, and that perhaps could have 0:02:59.720 --> 0:03:01.560 been one of the most escalatory things of all. It 0:03:01.600 --> 0:03:03.519 does not seem that that happened. Instead that this was 0:03:03.560 --> 0:03:07.080 relatively a limited strike with very little damage that seems 0:03:07.280 --> 0:03:11.560 to have resulted from it. US officials have confirmed to 0:03:11.560 --> 0:03:14.840 Bloomberg that Israel was behind this attack. Israel, as is 0:03:14.880 --> 0:03:18.440 typical in military operations relating to Iran, has not confirmed 0:03:18.760 --> 0:03:21.280 or denied it, not commenting at all. In the US 0:03:21.360 --> 0:03:23.840 Secretary of State Anthony Blincoln, also who was at a 0:03:23.840 --> 0:03:27.680 G seven meeting in Italy, didn't directly comment on this attack, 0:03:27.760 --> 0:03:29.520 but did go out of his way to say that 0:03:29.560 --> 0:03:32.680 the US has not been involved and any offensive operations 0:03:32.680 --> 0:03:36.480 and remains committed to de escalation between Israel and Iran, 0:03:36.640 --> 0:03:39.640 knowing of course that the US is primary objective throughout 0:03:39.640 --> 0:03:42.880 this entire saga that really has taken place, not just 0:03:43.000 --> 0:03:46.400 in the most immediate past, but since October seventh, when 0:03:46.400 --> 0:03:49.240 Hama's first attacked Israel. Is to have this not spread 0:03:49.520 --> 0:03:52.200 into a wider conflict. Right now, the signal from both 0:03:52.280 --> 0:03:54.320 Israel and Iran does not seem to be that there 0:03:54.400 --> 0:03:58.160 is interested in escalating this further. The sign seems to 0:03:58.160 --> 0:04:00.680 be that Iran is not immediately in flying to launch 0:04:00.720 --> 0:04:03.720 another counter strike against Israel for this, as the Ranian 0:04:03.760 --> 0:04:06.320 media saying largely the strike was unsuccessful. 0:04:07.440 --> 0:04:08.920 I'm just passing over the markets. 0:04:09.000 --> 0:04:10.760 Later in the program, Paily, we're going to do a 0:04:10.760 --> 0:04:13.760 deep dive on bitcoin, and I thought that actually the 0:04:14.160 --> 0:04:17.040 reaction over is sort of twenty four hour time period 0:04:17.080 --> 0:04:18.960 was interesting, kind of came down. I think we're back 0:04:19.040 --> 0:04:21.640 up in the session that the Nasdaq one hundred. On 0:04:21.680 --> 0:04:24.599 the equity side, it is the kind of megacat tech 0:04:24.720 --> 0:04:27.239 names that are pushing lower and points basis they're. 0:04:27.040 --> 0:04:28.279 A big drag on the index. 0:04:28.480 --> 0:04:31.040 My point being markets are trying to work out how 0:04:31.080 --> 0:04:34.839 serious this is operationally. The only kind of update that 0:04:34.880 --> 0:04:39.640 I've seen is from Secretary Blincoln, who in summary, basically said, 0:04:39.760 --> 0:04:42.719 you know, the United States did not participate, but do 0:04:42.800 --> 0:04:45.720 we have any sense of strategy here on the US side, 0:04:46.080 --> 0:04:51.440 given how they've operated in a basically advisory capacity in 0:04:51.520 --> 0:04:52.719 this situation so far? 0:04:54.040 --> 0:04:56.719 Well, the US has been quite clear that they will 0:04:56.760 --> 0:04:59.320 stand by their Iron Cloud commitment to Israel as an 0:04:59.320 --> 0:05:02.400 ally and a in Israel's defense, as we saw last 0:05:02.400 --> 0:05:05.039 weekend when it was US Air Defense that also contributed, 0:05:05.040 --> 0:05:07.440 alongside the UK and Jordan to making sure that the 0:05:07.520 --> 0:05:09.960 vast majority of those drones and missiles did not actually 0:05:10.080 --> 0:05:12.920 end up in Israeli airspace. But that is really where 0:05:13.000 --> 0:05:14.640 the US seems to have drawn the line. Yes, we 0:05:14.680 --> 0:05:16.880 will help defend you, However, we will not join you 0:05:17.160 --> 0:05:20.200 and any offensive operations. It was widely reported that when 0:05:20.400 --> 0:05:23.760 President Biden spoke to Netanyahu after last weekend's attack, he 0:05:23.880 --> 0:05:26.800 suggested that he should take the win essentially not go 0:05:26.839 --> 0:05:28.920 any further in that the US would not be joining 0:05:28.960 --> 0:05:32.599 them if the Israelis decided to counter attack against Iran again. 0:05:32.640 --> 0:05:34.680 It seems that Israel has decided to do so, but 0:05:34.760 --> 0:05:37.240 in a limited fashion, and it has done very clear 0:05:37.240 --> 0:05:39.360 messaging from the Secretary of State that the US was 0:05:39.400 --> 0:05:43.760 not involved in any particular offensive attack, including this one. 0:05:43.880 --> 0:05:43.960 Ed. 0:05:45.080 --> 0:05:48.360 There is a lot happening in DC at the moment, 0:05:48.440 --> 0:05:50.160 and in the coming week we're going to be talking 0:05:50.160 --> 0:05:53.040 a lot about TikTok. How much of the focus has 0:05:53.080 --> 0:05:56.080 been captured by the situation in the lease, both at 0:05:56.120 --> 0:05:58.960 the sort of federal level in the White House and 0:05:59.000 --> 0:06:01.520 through Congress as well well. 0:06:01.520 --> 0:06:04.520 A great deal at especially considering that Congress as we 0:06:04.560 --> 0:06:08.080 speak is getting ready to advance supplemental aid for other 0:06:08.120 --> 0:06:11.560 allies too, including Ukraine and Taiwan, but billions of dollars 0:06:11.560 --> 0:06:13.800 in aid for Israel. It's working its way through the House. 0:06:13.880 --> 0:06:16.880 We expect a procedural vote will tappen on the House 0:06:16.920 --> 0:06:20.400 floor today to advance that for a full floor vote tomorrow, 0:06:20.480 --> 0:06:22.800 either in the late afternoon or evening, which would then 0:06:22.839 --> 0:06:25.200 go on to the Senate and presumably be signed by 0:06:25.200 --> 0:06:27.320 President Biden in the not so distant future. So the 0:06:27.440 --> 0:06:30.039 US is actively thinking about the military support that it 0:06:30.080 --> 0:06:32.560 is providing allies. This has been a bit of a 0:06:32.600 --> 0:06:36.400 difficult journey, especially because the Ukraine aid itself has been 0:06:36.440 --> 0:06:39.160 complicated but I would just note that there's other political 0:06:39.200 --> 0:06:42.680 factors specifically with the Middle East here, including very high 0:06:42.720 --> 0:06:46.080 domestic pressure on President Biden from within the progressives in 0:06:46.120 --> 0:06:48.840 his own party, who also are not very supportive of 0:06:48.880 --> 0:06:51.679 the Israeli operation that we have seen in Gaza, given 0:06:51.720 --> 0:06:54.880 the high death toll of Palestinians, which authorities in Gaza 0:06:54.920 --> 0:06:58.640 say has now surpassed thirty four thousand. So at the 0:06:58.680 --> 0:07:00.320 same time that the US has been come to the 0:07:00.320 --> 0:07:02.320 defense of Israel in the case of Iran wants to 0:07:02.320 --> 0:07:04.239 make sure Israel is secure, it also has been putting 0:07:04.279 --> 0:07:06.680 a lot of pressure on the net Yahoo government to 0:07:06.800 --> 0:07:10.000 take higher account of the civilian toll of this war 0:07:10.080 --> 0:07:13.840 to make more easier to get humanitarian aid. In has 0:07:13.840 --> 0:07:16.440 been encouraging them not to conduct an operation in the 0:07:16.480 --> 0:07:19.400 city of Ratha, where there are remaining Hamas battalions, until 0:07:19.440 --> 0:07:23.240 they can safely evacuate the more than a Thousandtinian civilians 0:07:23.480 --> 0:07:25.600 that are there. So it's been a very difficult dance 0:07:25.680 --> 0:07:28.040 for the US to still be supportive of Israel, stand 0:07:28.040 --> 0:07:30.240 behind it as an ally, but also try to exercise 0:07:30.280 --> 0:07:34.680 some leverage to change Israeli policy, perhaps in regard to 0:07:34.800 --> 0:07:35.800 its ongoing war with. 0:07:35.720 --> 0:07:39.360 Hamas Bloombas k Lines in DC. Just terrific and deep 0:07:39.360 --> 0:07:42.320 reporting on what is a geopolitical situation, but just looking 0:07:42.400 --> 0:07:44.960 purely at the index level, and as that one hundred 0:07:45.080 --> 0:07:48.120 super tech heavy it's the megacat tech names that are 0:07:48.160 --> 0:07:52.440 dragging us down and they're really underperforming the benchmarkt S 0:07:52.480 --> 0:07:54.360 and P five hundred and the TAO is actually in 0:07:54.440 --> 0:07:57.400 positive territory. That's why we're focused there. The reaction in 0:07:57.440 --> 0:07:59.480 the markets is being felt in tech right now. 0:08:07.800 --> 0:08:11.559 This remotely operated vehicle offers a glimpse into what lies 0:08:11.640 --> 0:08:15.760 of thousands of meters underwater. It's one of several deep 0:08:15.800 --> 0:08:19.640 sea vehicles on board this repurposed ship from Ray Dalio's 0:08:19.680 --> 0:08:24.119 philanthropic venture. The Ocean Explorer behind me that's currently dogged 0:08:24.160 --> 0:08:27.000 in Singapore, will set off on its mission very soon 0:08:27.280 --> 0:08:31.800 to explore the deep waters of Southeast Asia. There's lots 0:08:31.840 --> 0:08:36.320 of advanced tech at creatre like this remotely controlled underwater. 0:08:36.000 --> 0:08:39.040 Vehicle that can go six thousand meters deep. 0:08:39.080 --> 0:08:43.559 To collect data any summer siples that contee passengers as 0:08:43.600 --> 0:08:47.640 deep as one thousand meters underwater. The vessel was once 0:08:47.760 --> 0:08:50.680 used in the oil and gas sector, but the revamped 0:08:50.840 --> 0:08:54.880 diesel electric ship now travels around the world, collaborating with 0:08:55.000 --> 0:08:58.960 governments and working with local scientists. It's in Southeast Asia 0:08:59.000 --> 0:09:02.199 to study the region's marine environment in an attempt to 0:09:02.240 --> 0:09:05.240 protect the oceans from the effects of climate change. 0:09:07.640 --> 0:09:11.720 Just such deep reporting on marine propulsion navigation. Bloomberg's Ainsley 0:09:12.040 --> 0:09:13.959 as a can with that report. Okay, let's get to 0:09:14.000 --> 0:09:17.560 talking tech and in the news, Apple is pulling metas 0:09:17.640 --> 0:09:21.400 WhatsApp from its app store in China amid orders from 0:09:21.480 --> 0:09:25.280 Beijing to close more loopholes in the country's long standing 0:09:25.360 --> 0:09:29.559 Internet firewall. The iPhone maker also removed the messaging services 0:09:29.600 --> 0:09:34.160 Telegram and Signal, according to consultants who are tracking that space. 0:09:34.360 --> 0:09:37.320 Plus sticking with Meta, the social giant has unveiled a 0:09:37.360 --> 0:09:41.480 new version of its powerful Lama artificial intelligence model. LAMA 0:09:41.559 --> 0:09:44.560 three is an upgrade from an AI model that Meta 0:09:44.640 --> 0:09:48.160 released last summer, and it's the latest effort to keep 0:09:48.160 --> 0:09:53.000 pace with similar technologies from companies like Open Ai and Google. 0:09:53.120 --> 0:09:56.400 And finally, Apollo and Sony are considering a joint offer 0:09:56.800 --> 0:10:00.160 for Paramount Global. According to sources, the two firms have 0:10:00.240 --> 0:10:03.400 held discussions about teaming up on and offer, but have 0:10:03.559 --> 0:10:07.320 not yet submitted an official proposal. Sony and Apollo's entry 0:10:07.360 --> 0:10:09.640 would complicate a deal that's already in the works for 0:10:09.720 --> 0:10:14.760 the studio, which is currently holding exclusive talks with Skuidance Media. 0:10:14.840 --> 0:10:20.440 Stick with Media digging into Netflix shares falling after earnings. 0:10:20.320 --> 0:10:21.600 But need them and Co. 0:10:21.840 --> 0:10:25.720 Actually upgrading Netflix today to buy from hold with an 0:10:25.800 --> 0:10:31.120 updated price target seven hundred US dollars. Laura Martin, senior 0:10:31.240 --> 0:10:34.160 entertainment and Internet analysts over at Needham and Co, is 0:10:34.240 --> 0:10:38.720 here with us live Bloomberg Technology. I really enjoyed your note. Hello, 0:10:38.760 --> 0:10:43.080 good morning, Happy Friday. Not so happy based on Netflix 0:10:43.080 --> 0:10:47.240 share response. The anxiety I think is the idea that 0:10:47.280 --> 0:10:51.120 they just won't report monthly subscriber gains or losses. 0:10:52.040 --> 0:10:54.760 Why so, I think. 0:10:54.720 --> 0:10:55.640 It's a great point. 0:10:55.720 --> 0:10:56.960 I mean, first of all, they're not going to do 0:10:57.000 --> 0:10:59.439 it until the first quarter of twenty five, so all 0:10:59.480 --> 0:11:02.080 of this year are sort of safe. Second, I'm really 0:11:02.120 --> 0:11:05.800 skeptical they can do this because, other than Apple, which 0:11:05.840 --> 0:11:08.800 I do not think Netflix is Apple, every company that 0:11:08.840 --> 0:11:13.080 has a subscriber driven business reports subscribers because we calculate 0:11:13.200 --> 0:11:15.760 value on a per subscriber basis. So I don't know 0:11:15.800 --> 0:11:17.520 if they'll actually do away with it, even though they've 0:11:17.559 --> 0:11:19.760 said they will. They're pretty good about listening to feedback, 0:11:19.760 --> 0:11:22.600 and Wall Street's feedback is pretty negative about this, like 0:11:23.120 --> 0:11:26.920 opaqueness that they're adding to the fundamentals. So but anyway, 0:11:26.920 --> 0:11:29.400 it's not an issue until the first quarter of twenty 0:11:29.440 --> 0:11:32.760 five at the earliest. I also think people are having 0:11:32.840 --> 0:11:37.000 issues with sort of below like a negative sub ad 0:11:37.080 --> 0:11:38.360 number compared to first quarter. 0:11:38.440 --> 0:11:39.040 They don't like that. 0:11:39.120 --> 0:11:41.920 And also the guidance for Q two is a little 0:11:41.960 --> 0:11:44.880 light compared to consensussessments. So I think people are worried 0:11:44.880 --> 0:11:46.520 about a slow down in revenue growth. 0:11:47.520 --> 0:11:51.600 I like the phrasing opaque. I mean Netflix managements thing 0:11:51.720 --> 0:11:55.880 has always been like judge USh on these traditional financial metrics, 0:11:56.160 --> 0:11:59.360 you know, profit. Basically, what I found interesting if you 0:11:59.360 --> 0:12:01.920 look at the nine point three to three million customers 0:12:01.960 --> 0:12:05.120 added in the first quarter, that there's a story behind it, right, 0:12:05.160 --> 0:12:09.360 which is that the password crackdown seemed to bring to 0:12:09.400 --> 0:12:11.080 them people that were forced to sign up for their 0:12:11.120 --> 0:12:13.880 own account and they were willing to do that. What 0:12:13.960 --> 0:12:16.520 was your interpretation of that number in the moment. 0:12:17.040 --> 0:12:19.760 So I also think that what's happening is when someone 0:12:19.800 --> 0:12:22.640 calls to disconnect because they're angry that they're going to 0:12:22.720 --> 0:12:25.120 have to buy, you know, buy a whole another subscription, 0:12:25.360 --> 0:12:27.560 or that the price is going up with the ad 0:12:27.600 --> 0:12:32.040 driven tier. Instead of canceling your fifteen dollars subscription that's 0:12:32.080 --> 0:12:33.719 on its way to twenty dollars, you can go to 0:12:33.760 --> 0:12:35.800 a seven dollars per month heer. 0:12:35.880 --> 0:12:37.000 You just have to take ads. 0:12:37.360 --> 0:12:40.840 But right now they tell us it Netflix if they 0:12:40.840 --> 0:12:42.880 don't have that many ads, that they have way more 0:12:42.880 --> 0:12:45.320 supply of AD units available to sell than they do 0:12:45.400 --> 0:12:48.160 have demand for AD units, which means the AD loads 0:12:48.200 --> 0:12:51.880 here are very minimal, like one or two ads an hour. 0:12:52.400 --> 0:12:54.400 So that's a pretty good deal for consumers right now 0:12:54.400 --> 0:12:57.200 because you can pay seven dollars a month and get 0:12:57.240 --> 0:13:00.200 almost no ads in what's called the AD tier. So 0:13:00.280 --> 0:13:02.800 three years from now there'll be five minutes of AD loads, 0:13:02.840 --> 0:13:04.880 but today there's like one minute of AD loads and 0:13:04.920 --> 0:13:07.559 you're paying seven dollars. I think that is helping their 0:13:07.559 --> 0:13:11.319 reported sub number, although it's hurting the art what they 0:13:11.320 --> 0:13:13.800 call arm what the rest of the world caused arpoo 0:13:13.920 --> 0:13:17.360 because the average the subscriber that used to disconnect and 0:13:17.360 --> 0:13:19.560 go to zero is now going to seven dollars, So 0:13:19.600 --> 0:13:23.440 it's pulling down the average revenue per subscriber as people 0:13:23.480 --> 0:13:25.319 sign up for these ad driven tears. 0:13:25.800 --> 0:13:28.400 Just a quick update for our Bloomberg Technology audience, laur 0:13:28.600 --> 0:13:30.440 I just wanted to talk about the shares really quickly. 0:13:30.640 --> 0:13:33.320 We're down more than eight percent off session lows that 0:13:34.000 --> 0:13:35.960 at one point that the stock was on track for 0:13:36.000 --> 0:13:39.839 its biggest drop since April of twenty twenty two. Let's 0:13:39.840 --> 0:13:41.400 see where we end up at the end of the day. 0:13:42.800 --> 0:13:44.760 I don't understand why we don't talk a little bit 0:13:44.800 --> 0:13:48.280 more about the strength of the content slate. I have 0:13:48.400 --> 0:13:52.120 just finished watching The Gentleman, for example, the TV or 0:13:52.200 --> 0:13:56.160 series adaptation of the Guy Richie film. Thought it was 0:13:56.200 --> 0:14:00.600 good for what it's worth, content wise, continuity wise, Netflix 0:14:00.880 --> 0:14:02.000 seems to be okay. 0:14:03.400 --> 0:14:05.080 Why are we not discussing that more. 0:14:05.440 --> 0:14:08.000 I think because Wall Street sort of feels that's the 0:14:08.480 --> 0:14:11.120 that's their They make widgets, right, their widget happens to 0:14:11.120 --> 0:14:13.000 be content. We assume they're going to do a good 0:14:13.040 --> 0:14:15.760 job of that. With the seventeen billion dollars a year 0:14:16.120 --> 0:14:19.720 that public shareholders give them, we expect them to maximize 0:14:20.160 --> 0:14:22.880 the quality of that seventeen billion of content. 0:14:22.960 --> 0:14:24.480 We sort of think that's their core business. 0:14:25.080 --> 0:14:27.920 Like just because Apple makes great phones like that, you 0:14:27.960 --> 0:14:29.920 don't give them kudos for that, Like they better make 0:14:29.920 --> 0:14:32.160 great phones otherwise people aren't going to keep the service. 0:14:32.240 --> 0:14:35.120 So I think that's their core business. And I also 0:14:35.160 --> 0:14:38.520 think Wall Street is skeptical of hit driven businesses because 0:14:38.600 --> 0:14:40.720 you may love The Gentleman, which I also thought was 0:14:40.760 --> 0:14:44.760 excellent content, but somebody else wants to watch the Kardashians 0:14:44.800 --> 0:14:47.680 on a different service. Like you know, what quality content 0:14:47.840 --> 0:14:51.600 is to different people is different, and so you know, 0:14:51.640 --> 0:14:53.880 what we care about on Wall Street is what is 0:14:54.000 --> 0:14:56.800 what's happening with the return on investment for the seventeen 0:14:56.840 --> 0:14:57.480 billion of content. 0:14:57.520 --> 0:14:59.479 And I will tell you sports. 0:14:59.120 --> 0:15:01.000 Is really important to Wall Street, and I think it's 0:15:01.000 --> 0:15:02.720 really important to these streaming services. 0:15:03.040 --> 0:15:04.400 So they are doing more with sports. 0:15:04.480 --> 0:15:06.000 As you saw on the car, there's a lot of 0:15:06.040 --> 0:15:08.560 talk about this big fight that's coming up. They've now 0:15:08.600 --> 0:15:11.640 signed up WWE to do live sports let's call it 0:15:11.760 --> 0:15:13.239 entertainment sports, yes. 0:15:13.000 --> 0:15:15.000 Every week for next year. That's a big deal. 0:15:15.240 --> 0:15:18.320 They are softening on sports, but they also said they 0:15:18.320 --> 0:15:20.640 are not going to spend any more money on sports. 0:15:20.680 --> 0:15:22.800 They're going to have to the sports fees will have 0:15:22.800 --> 0:15:25.200 to come out of the seventeen billion in total content cast. 0:15:25.400 --> 0:15:27.960 That's really important. I think there need to be in news. 0:15:27.680 --> 0:15:29.760 Also, Laura, we got to go with some breaking news, 0:15:29.800 --> 0:15:31.600 but we'll have you back to talk Jenai and the 0:15:31.640 --> 0:15:32.600 context of Netflix. 0:15:32.640 --> 0:15:34.360 Thank you. This is the breaking news. 0:15:34.400 --> 0:15:36.880 First of all, in the House, the Ukraine Aid and 0:15:37.000 --> 0:15:40.520 TikTok bills have cleared the procedural hurdle in. 0:15:40.440 --> 0:15:41.960 The House that we were waiting for. 0:15:42.720 --> 0:15:46.640 Separately, on the Senate floor, Majority Leader Chuck Schumer is 0:15:46.680 --> 0:15:50.040 speaking and saying that lawmakers should plan to work this 0:15:50.160 --> 0:15:52.760 weekend to take up the Ukraine Aid bill quickly, and 0:15:52.800 --> 0:15:55.320 we'll keep an eye on TikTok. Those are stories we're 0:15:55.320 --> 0:15:58.240 tracking here on Bloomberg Technology. We'll be right back. This 0:15:58.480 --> 0:16:00.400 is Bloomberg takelogy. 0:16:15.240 --> 0:16:15.840 Let's go back to. 0:16:15.800 --> 0:16:18.560 Those breaking news headlines out of Washington, d C. In 0:16:18.640 --> 0:16:21.840 the House, the Ukraine Aid and TikTok bills have cleared 0:16:21.880 --> 0:16:23.240 a key procedural hurdle. 0:16:23.520 --> 0:16:24.680 Separately out of the. 0:16:24.640 --> 0:16:30.240 Senate, Majority Leader Chuck Schumer speaking saying that lawmakers should 0:16:30.360 --> 0:16:34.080 plan to work this weekend in the context of the 0:16:34.120 --> 0:16:38.040 TikTok bill, the divest or ban bill. That's one that 0:16:38.080 --> 0:16:40.960 we've been tracking on this program because we're trying to 0:16:41.080 --> 0:16:45.320 understand the cadence of how quickly that could be ratified, 0:16:45.720 --> 0:16:47.920 if at all. I think my colleague and friend Bluembos 0:16:47.960 --> 0:16:50.160 Kylee Lines hosts a balance of power. 0:16:50.000 --> 0:16:51.880 Is good and joins us from Washington, d C. 0:16:52.440 --> 0:16:55.120 I was trying to pass two things happening in parallel, Kayley, 0:16:55.400 --> 0:16:56.680 from the House and the Senate. 0:16:57.040 --> 0:16:57.760 What are you seeing? 0:16:58.040 --> 0:17:00.400 Yeah, well, a this was a massive vip artis and 0:17:00.400 --> 0:17:04.320 majority that this procedural vote advanced under. It was more 0:17:04.359 --> 0:17:06.280 than three hundred members of the House to be exact, 0:17:06.320 --> 0:17:09.200 three hundred and sixteen who voted for passage of the rule, 0:17:09.240 --> 0:17:11.680 which will clear the way tomorrow for them to pass 0:17:11.800 --> 0:17:14.400 one by one this series of bills. It will likely 0:17:14.400 --> 0:17:17.080 happen over the course of Saturday afternoon to evening. One 0:17:17.119 --> 0:17:19.600 bill that will have more than sixty billion dollars in 0:17:19.640 --> 0:17:22.560 military aid for Ukraine billions more, and a separate bill 0:17:22.560 --> 0:17:25.240 for Israel, and then a separate one for the Indo Pacific. 0:17:25.280 --> 0:17:27.720 And that will be a fourth bill as well, which 0:17:27.720 --> 0:17:30.359 we are calling the sidecar here in Washington, that includes 0:17:30.400 --> 0:17:33.199 a variety of other measures including that divestiture bill relating 0:17:33.600 --> 0:17:35.920 to TikTok At, as well as others like the Repo Act, 0:17:35.920 --> 0:17:38.600 which will allow for the seizure of frozen frozen Russian 0:17:38.600 --> 0:17:42.040 assets that could be used to pay for Ukraine's war effort. So, 0:17:42.080 --> 0:17:44.600 once all of this passes the House, presumably there's going 0:17:44.680 --> 0:17:47.080 to be two quick key questions. One is how quickly 0:17:47.080 --> 0:17:49.240 can it be repackaged together to be sent to the 0:17:49.280 --> 0:17:51.600 Senate for passage to get to the desk of President 0:17:51.640 --> 0:17:54.359 Biden for a signature, and also what will happen to 0:17:54.400 --> 0:17:57.080 the House Speaker Mike Johnson. As a result of this, 0:17:57.160 --> 0:17:59.320 he has been under tremendous pressure from a few members 0:17:59.359 --> 0:18:02.160 of his republic conference who do not want to see 0:18:02.200 --> 0:18:04.880 Ukraine Aid go to the floor of the. 0:18:04.840 --> 0:18:05.680 House for a vote. 0:18:05.680 --> 0:18:09.120 One of the most outspoken has been Congressman Marjorie Taylor Green, 0:18:09.160 --> 0:18:11.879 who has filed a motion to vacate, which is what 0:18:11.960 --> 0:18:15.040 Oust Speaker Kevin McCarthy just months ago. Has not yet 0:18:15.080 --> 0:18:17.800 acted on it, but has long signals she could if 0:18:17.840 --> 0:18:20.200 indeed he put Ukraine Aid on the floor. So we're 0:18:20.240 --> 0:18:22.439 going to wait to see for action on that. Other members, 0:18:22.440 --> 0:18:25.880 including Republican Congressman Tom Massey have suggested they will join 0:18:25.920 --> 0:18:28.280 her in that effort, however, ed and this is where 0:18:28.320 --> 0:18:31.359 it gets really interesting. It took Democrats to get this 0:18:31.480 --> 0:18:33.280 rule pass, to get it over the finish line now, 0:18:33.320 --> 0:18:35.760 and it does seem that Democrats may step in to 0:18:35.880 --> 0:18:39.800 help save the gavel of Speaker Johnson if it proves necessary. 0:18:39.840 --> 0:18:41.520 There's been a lot of talk here in Washington this 0:18:41.600 --> 0:18:45.000 morning about this kind of being like a coalition government 0:18:45.040 --> 0:18:47.600 because Mike Johnson is relying on the other party to 0:18:47.640 --> 0:18:50.439 basically get everything over the line, and potentially might be 0:18:50.520 --> 0:18:52.200 relying on them to help him keep his job. 0:18:53.080 --> 0:18:55.600 That's kind of focused on the House level. Let's take 0:18:55.640 --> 0:18:57.600 a moment here. There's a lot happening, and there are 0:18:57.640 --> 0:19:01.080 a lot of headlines in parallel. Chuck Schumer in the 0:19:01.080 --> 0:19:04.800 Senate is saying that lawmakers should plan to work this 0:19:04.920 --> 0:19:08.119 weekend is needed. You know, there will be audience members 0:19:08.160 --> 0:19:10.320 around the world, but particularly around the country in the 0:19:10.400 --> 0:19:13.639 United States, saying why are they working through the weekend 0:19:13.680 --> 0:19:15.160 on this Why is it so important? 0:19:15.520 --> 0:19:18.160 Well, because this aid is desperately needed. If you listen 0:19:18.200 --> 0:19:20.520 to US intelligence officials that I was speaking with the 0:19:20.600 --> 0:19:23.240 chair of the House Intelligence Committee, Congressman Mike Turner just 0:19:23.320 --> 0:19:25.520 last night, who was suggesting that it needed to pass 0:19:25.880 --> 0:19:28.040 this week based on the intel they are getting on 0:19:28.080 --> 0:19:30.680 the ground in Ukraine. Just procedurally because of the way 0:19:30.680 --> 0:19:32.919 the House works and the requirement that members have to 0:19:32.920 --> 0:19:35.280 have seventy two hours to read the bill. Because of 0:19:35.320 --> 0:19:37.560 when the text is released, they can't actually have the 0:19:37.640 --> 0:19:40.679 vote until Saturday night. Now, the Senate is going to 0:19:40.800 --> 0:19:42.760 very want to quickly take this up, which could mean 0:19:42.800 --> 0:19:44.800 that they take it right as soon as the House 0:19:44.840 --> 0:19:47.480 passage passes it and begin to do the procedural work 0:19:47.600 --> 0:19:49.320 in the Senate to get this over the finish line, 0:19:49.320 --> 0:19:51.399 which maybe why they end up staying the weekend. I 0:19:51.400 --> 0:19:53.879 would also point out that the Senate tonight is facing 0:19:53.920 --> 0:19:56.440 a midnight dadlight of the expiration of FISA. The Foreign 0:19:56.520 --> 0:19:58.920 Surveillance Act, which of course has been passed in the House, 0:19:58.960 --> 0:20:01.480 has been running into some her in the Senate as well, 0:20:01.480 --> 0:20:04.280 and that could potentially lapse for a bit at midnight 0:20:04.280 --> 0:20:05.720