1 00:00:02,279 --> 00:00:05,600 Speaker 1: From the heart of where innovation, money and power Collie 2 00:00:06,400 --> 00:00:10,920 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:27,040 Speaker 1: Emily Jay. I'm Emily Changing in San Francisco, and this 4 00:00:27,080 --> 00:00:30,040 Speaker 1: is Bloomberg Technology coming up in the next hour. Netflix 5 00:00:30,120 --> 00:00:33,879 Speaker 1: hits a wall. The streaming giant loses subscribers for the 6 00:00:33,920 --> 00:00:37,800 Speaker 1: first time in a decade, two hundred thousand of them, 7 00:00:37,840 --> 00:00:40,560 Speaker 1: and says two million more will go. We've got the 8 00:00:40,600 --> 00:00:44,280 Speaker 1: latest earnings from port covered from all angles plus after 9 00:00:44,320 --> 00:00:47,400 Speaker 1: airlines now Ober and Lift are also dropping masks in 10 00:00:47,440 --> 00:00:50,680 Speaker 1: the United States after a judge overturned a federal mandate 11 00:00:50,680 --> 00:00:53,840 Speaker 1: for passengers to cover their faces. We'll talk about how 12 00:00:53,880 --> 00:00:58,400 Speaker 1: that might impact ride hailings bottom line. And Bitcoin can't 13 00:00:58,400 --> 00:01:00,960 Speaker 1: seem to break out of that two thousand dollar range, 14 00:01:01,000 --> 00:01:03,720 Speaker 1: so can it really be a hedge against inflation. We'll 15 00:01:03,720 --> 00:01:06,880 Speaker 1: speak with Michael Sailor of micro Strategy, the world's biggest 16 00:01:06,920 --> 00:01:10,160 Speaker 1: corporate holder of bitcoin, about all this and much more. 17 00:01:10,800 --> 00:01:12,480 Speaker 1: We'll get to that in a moment, but first, it 18 00:01:12,640 --> 00:01:14,560 Speaker 1: is a blood bath for Netflix, with a drop and 19 00:01:14,600 --> 00:01:17,520 Speaker 1: subscribers and a plunge in shares. Bloom Brooks and Ludlow 20 00:01:17,720 --> 00:01:20,560 Speaker 1: has been pouring through the numbers here and this was 21 00:01:20,640 --> 00:01:23,839 Speaker 1: kind of unexpected, yeah, I mean hugely unexpected. Two hundred 22 00:01:23,840 --> 00:01:26,360 Speaker 1: thousand customers lost in that first quarter of the estimate 23 00:01:26,400 --> 00:01:28,640 Speaker 1: by Netflix itself was to add more than two million, 24 00:01:28,720 --> 00:01:31,119 Speaker 1: the Street looking for that as well. The worrying part 25 00:01:31,160 --> 00:01:34,119 Speaker 1: is the outlook for the second quarter, another loss of customers, 26 00:01:34,160 --> 00:01:36,960 Speaker 1: two million lost. The outlook was a gain of two 27 00:01:37,000 --> 00:01:39,680 Speaker 1: point four million, that's the Wall Street can Sense estimate. 28 00:01:39,720 --> 00:01:41,920 Speaker 1: And in three out of the four regions where Netflix 29 00:01:42,000 --> 00:01:45,600 Speaker 1: operates they lost customers. The only exceptions that rule Asian specific. 30 00:01:45,600 --> 00:01:47,200 Speaker 1: You see what the market thinks about it. We're down 31 00:01:48,080 --> 00:01:50,600 Speaker 1: and after hours. This is actually the fifth quarter in 32 00:01:50,640 --> 00:01:52,800 Speaker 1: a row though where there's been a negative reaction to 33 00:01:52,880 --> 00:01:57,160 Speaker 1: Netflix earning. So you know, none of this we saw coming. 34 00:01:57,360 --> 00:01:59,559 Speaker 1: But this is pretty profound impact, especially when you consider 35 00:01:59,560 --> 00:02:01,920 Speaker 1: the market throughout the day on Tuesday, we saw an 36 00:02:02,160 --> 00:02:05,920 Speaker 1: rally across equities, outperformance in the technology sector relative to 37 00:02:06,000 --> 00:02:09,000 Speaker 1: the broader market. And that's the despite yields continues to 38 00:02:09,040 --> 00:02:11,440 Speaker 1: be elevating. You look at US tenure yield up two 39 00:02:11,440 --> 00:02:14,680 Speaker 1: point nine four percentage points. Also a risk on mode 40 00:02:14,680 --> 00:02:17,000 Speaker 1: with bitcoin getting caught up in it. The other big story, 41 00:02:17,000 --> 00:02:19,680 Speaker 1: of course, and that I've been tracking Twitter and elon 42 00:02:19,800 --> 00:02:23,120 Speaker 1: Musk's bid to buy the company Twitter lower On Tuesday, 43 00:02:23,160 --> 00:02:26,120 Speaker 1: really the big news was Apollo getting in on the act, 44 00:02:26,200 --> 00:02:28,880 Speaker 1: saying it would partner with musks bid, or according to sources, 45 00:02:28,880 --> 00:02:32,080 Speaker 1: they were partner with Musk bigs or another private equity 46 00:02:32,120 --> 00:02:35,920 Speaker 1: firm in the form of a credit backing or preferential equity, 47 00:02:36,000 --> 00:02:37,519 Speaker 1: something of that form. And then The New York Post 48 00:02:37,600 --> 00:02:41,240 Speaker 1: reporting earlier Tuesday that Musk is struggling to get backers, 49 00:02:41,280 --> 00:02:43,760 Speaker 1: but he could put ten to fifteen billion dollars of 50 00:02:43,800 --> 00:02:45,760 Speaker 1: his own money in and even do some kind of 51 00:02:45,840 --> 00:02:48,920 Speaker 1: leverage by out borrowing against the holdings of this Twitter steak. 52 00:02:49,520 --> 00:02:51,560 Speaker 1: One story, though, We've got to focus on Netflix because 53 00:02:51,560 --> 00:02:53,560 Speaker 1: it's not just Netflix that's moving in after hours, you 54 00:02:53,560 --> 00:02:56,560 Speaker 1: look across the streaming space and some of Netflix's peers 55 00:02:56,919 --> 00:03:00,639 Speaker 1: we're seeing serious declines. Disney down five per and Paramount 56 00:03:00,639 --> 00:03:03,680 Speaker 1: now a little changing after ours, but Roku also suffering. 57 00:03:03,880 --> 00:03:07,720 Speaker 1: Question is is this isolated and just Netflix or is 58 00:03:07,800 --> 00:03:10,000 Speaker 1: the big growth we saw in streaming throughout the pandemic 59 00:03:10,280 --> 00:03:12,200 Speaker 1: is that over all right? And we're going to see 60 00:03:12,200 --> 00:03:14,519 Speaker 1: that in earnings reports to come over the next few weeks, 61 00:03:14,520 --> 00:03:16,560 Speaker 1: i'd Ludlow, thank you. I want to stick with Netflix 62 00:03:16,560 --> 00:03:19,840 Speaker 1: and bring in Andre Swanston, longtime entrepreneur and executive in 63 00:03:20,000 --> 00:03:23,080 Speaker 1: the streaming business now and s VP at TransUnion. Andre, 64 00:03:23,200 --> 00:03:25,360 Speaker 1: great to have you back with us. Look, first subscriber 65 00:03:25,400 --> 00:03:30,040 Speaker 1: loss in a decade? What went wrong? Look? I I 66 00:03:30,160 --> 00:03:32,920 Speaker 1: don't think it was unexpected uh to a lot of 67 00:03:33,639 --> 00:03:36,600 Speaker 1: executives across the media entertainment industry that Netflix was gonna 68 00:03:36,640 --> 00:03:40,520 Speaker 1: have challenges. I've been saying so for the last eighteen months. Um. 69 00:03:40,520 --> 00:03:43,560 Speaker 1: To have such a large miss, I think is is 70 00:03:43,600 --> 00:03:46,320 Speaker 1: a bit surprising. But there's a there's a few core 71 00:03:46,440 --> 00:03:49,560 Speaker 1: challenges that that I think it's astonishing to me that 72 00:03:49,560 --> 00:03:52,760 Speaker 1: that Netflix hasn't adjusted, and even in the report that 73 00:03:52,960 --> 00:03:55,080 Speaker 1: don't seem like they're really looking to I think the 74 00:03:55,080 --> 00:03:57,000 Speaker 1: first one is there's a lot of talk about the 75 00:03:57,080 --> 00:04:02,080 Speaker 1: competition from Disney and HBO, Max and Amazon and others. Uh, 76 00:04:02,120 --> 00:04:04,800 Speaker 1: and I do think that that has some impact, right, um. 77 00:04:04,840 --> 00:04:07,400 Speaker 1: But but what people really aren't talking about is is 78 00:04:07,440 --> 00:04:10,120 Speaker 1: that most of the growth over the last two years 79 00:04:10,160 --> 00:04:13,960 Speaker 1: and streaming has really been free ad supported solutions UM 80 00:04:14,000 --> 00:04:16,839 Speaker 1: the Pluto TVs. The two bees, the zoom os, and 81 00:04:16,880 --> 00:04:18,800 Speaker 1: what the major media companies have done a really good 82 00:04:18,880 --> 00:04:21,640 Speaker 1: job is that they went and acquired all of those companies. 83 00:04:21,960 --> 00:04:24,760 Speaker 1: And so why they while they made acquisitions that versify 84 00:04:24,839 --> 00:04:28,680 Speaker 1: their business model and streaming, Netflix is still yet to lead, uh, 85 00:04:28,720 --> 00:04:32,440 Speaker 1: you know, launch any sort of cheaper ad supported or 86 00:04:32,520 --> 00:04:34,600 Speaker 1: free ad supported tiers. So I think that was one 87 00:04:34,640 --> 00:04:37,160 Speaker 1: of the main things. Um So inflation hurt them more. 88 00:04:37,240 --> 00:04:39,520 Speaker 1: Competition hurt them more that I think it will hurt 89 00:04:39,520 --> 00:04:42,680 Speaker 1: a lot of their competitors. Part of this overall number 90 00:04:42,680 --> 00:04:45,400 Speaker 1: we're seeing is Russia, and of course we saw Netflix 91 00:04:45,440 --> 00:04:48,560 Speaker 1: cutting off service there. I believe it's only about three 92 00:04:48,960 --> 00:04:52,880 Speaker 1: thousand accounts total, but there's clearly a longer term problem 93 00:04:52,960 --> 00:04:57,200 Speaker 1: here with two million paid subscribers potentially going in the 94 00:04:57,320 --> 00:05:01,200 Speaker 1: coming quarter. I mean, why are we not just losses 95 00:05:01,240 --> 00:05:06,120 Speaker 1: but such deep losses. Well, so, you know, partly because 96 00:05:06,240 --> 00:05:09,360 Speaker 1: there's nothing that they've done or or mentioned that they're 97 00:05:09,400 --> 00:05:11,360 Speaker 1: doing to solve these challenges. So the two things they 98 00:05:11,400 --> 00:05:14,640 Speaker 1: talked to is about the the they're increasing the money 99 00:05:14,680 --> 00:05:17,400 Speaker 1: that the investment that they're making into content. You can't 100 00:05:17,440 --> 00:05:20,560 Speaker 1: really spend your way out of this because there's there's 101 00:05:20,960 --> 00:05:23,479 Speaker 1: other huge companies that are going and spending billions and 102 00:05:23,480 --> 00:05:25,880 Speaker 1: billions of dollars as well, So that's not really the challenge. 103 00:05:26,200 --> 00:05:28,919 Speaker 1: The other thing that Netflix was really good at historically 104 00:05:29,000 --> 00:05:31,480 Speaker 1: is they probably had a six or seven year head 105 00:05:31,560 --> 00:05:33,840 Speaker 1: start on when it came to data in terms of 106 00:05:34,320 --> 00:05:38,120 Speaker 1: streaming media consumption for television and movie shows. And so 107 00:05:38,160 --> 00:05:40,320 Speaker 1: what that allowed them to do is in this in essence, 108 00:05:40,320 --> 00:05:44,040 Speaker 1: play moneyball with content licensing. Now they can't do that 109 00:05:44,080 --> 00:05:47,520 Speaker 1: because the owners of those content can monetize it themselves. Um. 110 00:05:47,560 --> 00:05:49,840 Speaker 1: And they mentioned, you know, launching the two thumbs up 111 00:05:50,360 --> 00:05:53,320 Speaker 1: button to give them more insight. Um. There's nothing that 112 00:05:53,360 --> 00:05:56,360 Speaker 1: Netflix can do to claim more data and insight off 113 00:05:56,400 --> 00:05:59,040 Speaker 1: of their platform that can help them compete with the 114 00:05:59,040 --> 00:06:01,839 Speaker 1: the the diversity of the data that a company like 115 00:06:01,880 --> 00:06:04,640 Speaker 1: Amazon has they know what you buy, or Google knows 116 00:06:04,680 --> 00:06:08,000 Speaker 1: what you search, um uh. And and you know, Apple 117 00:06:08,080 --> 00:06:10,160 Speaker 1: knows what music you listen to as well, And so 118 00:06:10,200 --> 00:06:12,520 Speaker 1: I think that's gonna be a real real challenge for them. 119 00:06:12,760 --> 00:06:15,160 Speaker 1: And and also the investments that they've made into gaming. 120 00:06:15,400 --> 00:06:17,480 Speaker 1: You know, they've spent tens of millions of dollars here 121 00:06:17,480 --> 00:06:20,040 Speaker 1: and hundreds of millions of dollars. The people that they're 122 00:06:20,040 --> 00:06:22,840 Speaker 1: trying to catch are spending billions of dollars on gaming 123 00:06:22,880 --> 00:06:25,120 Speaker 1: and going into the metaverse, and so, you know, I 124 00:06:25,640 --> 00:06:28,160 Speaker 1: think just doubling down and tripling down on what they 125 00:06:28,200 --> 00:06:31,040 Speaker 1: have been doing over really well over the last decade 126 00:06:31,279 --> 00:06:33,640 Speaker 1: and thinking that it's going to carry them through the twenties, 127 00:06:33,880 --> 00:06:36,719 Speaker 1: um is gonna be. It's gonna be difficult. Our look 128 00:06:36,720 --> 00:06:39,240 Speaker 1: at show who covers the entertainment business and Netflix for 129 00:06:39,360 --> 00:06:42,560 Speaker 1: us said there's a hard solution to Netflix's problem. He's 130 00:06:42,600 --> 00:06:45,720 Speaker 1: not talking about ads. He simply says, make better shows. 131 00:06:45,800 --> 00:06:49,120 Speaker 1: What about that? No, I I think that that's that's 132 00:06:49,120 --> 00:06:52,200 Speaker 1: actually the mentality that they pretty much already doubled down on. 133 00:06:52,560 --> 00:06:55,480 Speaker 1: If we can poach the biggest producers in the industry, 134 00:06:55,480 --> 00:06:58,160 Speaker 1: if we can have the greatest TV shows and and 135 00:06:58,160 --> 00:07:01,800 Speaker 1: and great movies, we can fend off companies like like 136 00:07:01,880 --> 00:07:03,880 Speaker 1: Disney that have a hundred years of content that they 137 00:07:03,880 --> 00:07:06,960 Speaker 1: can just keep updating. Um. I think that strategy has 138 00:07:06,960 --> 00:07:09,120 Speaker 1: are already proven that it doesn't work, or else they 139 00:07:09,120 --> 00:07:11,280 Speaker 1: wouldn't have had the mist that they did this past 140 00:07:11,360 --> 00:07:14,280 Speaker 1: quarter so quickly. Then how contagious do they think this 141 00:07:14,360 --> 00:07:16,000 Speaker 1: is going to be how much are we gonna see 142 00:07:16,040 --> 00:07:19,480 Speaker 1: This also reflected in Disney results given you know, yes, 143 00:07:19,520 --> 00:07:24,800 Speaker 1: a different library, but still they're also relying on new content. Yeah, 144 00:07:24,880 --> 00:07:28,360 Speaker 1: so I don't think the results will be the same 145 00:07:28,880 --> 00:07:32,160 Speaker 1: in terms of other companies for a couple of reasons. Um. One, 146 00:07:32,680 --> 00:07:36,400 Speaker 1: the other streaming solutions are still new. They're still launching 147 00:07:36,400 --> 00:07:38,600 Speaker 1: a new market for the first time, so there's still 148 00:07:38,800 --> 00:07:41,680 Speaker 1: uh potential subscribers that never had the ability to access 149 00:07:41,720 --> 00:07:45,960 Speaker 1: their content, whereas Netflix has had pretty widespread distributions for 150 00:07:46,040 --> 00:07:48,840 Speaker 1: quite some time. So that's one thing. Um. The second 151 00:07:48,880 --> 00:07:51,840 Speaker 1: thing is everybody else has it diversified, just about has 152 00:07:51,840 --> 00:07:56,000 Speaker 1: a diversified subscriber model where they're cheaper tears like Hulu 153 00:07:56,120 --> 00:07:58,040 Speaker 1: or other things where subscribers can get in and pay 154 00:07:58,120 --> 00:08:01,000 Speaker 1: less to see ads or in fact just completely free 155 00:08:01,000 --> 00:08:04,200 Speaker 1: tears and the in the ad supported streaming ecosystem, we're 156 00:08:04,240 --> 00:08:07,160 Speaker 1: seeing massive growth year over year, um, even despite the 157 00:08:07,960 --> 00:08:11,280 Speaker 1: weighing of lockdowns in the pandemic. So it doesn't hold 158 00:08:11,320 --> 00:08:14,280 Speaker 1: true that people just aren't streaming anymore, because the data 159 00:08:14,320 --> 00:08:16,840 Speaker 1: shows is that that's absolutely not the case. All Right, Well, 160 00:08:16,840 --> 00:08:18,720 Speaker 1: we're going to continue to cover the story throughout the hour. 161 00:08:18,800 --> 00:08:23,520 Speaker 1: Andre Swanston of TransUnion, always appreciate your insights on Netflix 162 00:08:23,520 --> 00:08:35,000 Speaker 1: and the streaming business beyond. No more masks on rides. 163 00:08:35,160 --> 00:08:37,600 Speaker 1: Uber and Lyft now joining a growing number of major 164 00:08:37,640 --> 00:08:41,040 Speaker 1: transport providers and shifting their mask policies. This after a 165 00:08:41,120 --> 00:08:44,680 Speaker 1: US judge overturned a federal mandate for passengers to cover 166 00:08:44,880 --> 00:08:48,240 Speaker 1: their faces on Monday. Let's bring in Blue Works Jackie Davalos, 167 00:08:48,240 --> 00:08:50,760 Speaker 1: who covers both Uber and left for US. So, Jackie, 168 00:08:50,760 --> 00:08:52,160 Speaker 1: I guess the big question is is this going to 169 00:08:52,280 --> 00:08:56,560 Speaker 1: mean drivers and riders are more or less inclined to travel? 170 00:08:57,080 --> 00:08:59,760 Speaker 1: You know, if you are one of those that have 171 00:09:00,160 --> 00:09:02,880 Speaker 1: following mask mandates for as long as they've been around 172 00:09:02,880 --> 00:09:06,679 Speaker 1: the past two years, this may seem like an inconsequential 173 00:09:07,000 --> 00:09:09,800 Speaker 1: update and policy. But if you're also like me who 174 00:09:09,800 --> 00:09:13,480 Speaker 1: forgets their mask in a different coat pocket or purse, uh, 175 00:09:13,600 --> 00:09:16,040 Speaker 1: it might come as a relief and even you know, 176 00:09:16,080 --> 00:09:19,640 Speaker 1: making more likely to take another ride. For many riders, 177 00:09:20,000 --> 00:09:21,880 Speaker 1: you know, this has just been something that we've learned 178 00:09:21,920 --> 00:09:24,680 Speaker 1: to live with. However, for others, you know, it might 179 00:09:24,760 --> 00:09:28,280 Speaker 1: bring them off the sidelines after um, you know, perhaps 180 00:09:28,320 --> 00:09:31,840 Speaker 1: feeling strongly about not wearing masks, on the driver's side. 181 00:09:31,920 --> 00:09:34,000 Speaker 1: I think that's where we're going to see more of 182 00:09:34,040 --> 00:09:37,360 Speaker 1: a diverging reaction. It may not be such a slam 183 00:09:37,480 --> 00:09:41,920 Speaker 1: dunk policy for for driver's supply, because many were already 184 00:09:41,920 --> 00:09:44,400 Speaker 1: skittish to come back to the platform. As we've spoken 185 00:09:44,400 --> 00:09:47,520 Speaker 1: about emily in the past, the driver's shortage, A major 186 00:09:47,600 --> 00:09:50,800 Speaker 1: reason that has really persisted is because of the heightened 187 00:09:51,080 --> 00:09:54,480 Speaker 1: concern around the risk of infection by having someone in 188 00:09:54,480 --> 00:09:58,280 Speaker 1: your car. Uber and Left also now saying riders can 189 00:09:58,360 --> 00:10:00,880 Speaker 1: ride in the front seat if they want want though 190 00:10:00,920 --> 00:10:03,640 Speaker 1: of course saying that folks need to be respectful if 191 00:10:03,679 --> 00:10:05,720 Speaker 1: they still want to wear masks. How much do you 192 00:10:05,720 --> 00:10:08,760 Speaker 1: think this is actually going to impact Uber and Lifts 193 00:10:08,880 --> 00:10:12,760 Speaker 1: bottom lines? You know, when we think about where the 194 00:10:12,760 --> 00:10:16,400 Speaker 1: companies are today, Uber obviously has more of a buffer 195 00:10:16,440 --> 00:10:19,000 Speaker 1: with their Uber Eats business, but they've been trying to 196 00:10:19,120 --> 00:10:22,120 Speaker 1: really bolster that mobility segment. Again, this is only going 197 00:10:22,200 --> 00:10:25,720 Speaker 1: to help that that rideshare business was already profitable and 198 00:10:25,760 --> 00:10:27,960 Speaker 1: it could only help their bottom lighting you further if 199 00:10:28,000 --> 00:10:30,439 Speaker 1: they can boost those levels back to where they were 200 00:10:30,640 --> 00:10:33,920 Speaker 1: pre pandemic. Now for Lift, this uh, the stakes are 201 00:10:33,960 --> 00:10:37,840 Speaker 1: much higher for them given bright hailing is their primary business. UM. 202 00:10:37,840 --> 00:10:40,959 Speaker 1: When we think about where, um, some of their business 203 00:10:40,960 --> 00:10:45,360 Speaker 1: comes from, as it relates to airport travel, major airlines 204 00:10:45,400 --> 00:10:48,880 Speaker 1: loosening their mask mandates and potentially seeing an uptick in 205 00:10:48,920 --> 00:10:52,760 Speaker 1: flights is only going to help rideshare companies even more. 206 00:10:52,960 --> 00:10:56,840 Speaker 1: But definitely, you know, ridership has not totally recovered and 207 00:10:57,000 --> 00:11:00,319 Speaker 1: this could potentially put them a little bit star to 208 00:11:00,360 --> 00:11:03,199 Speaker 1: the finish line. And what about Uberpool On their website, 209 00:11:03,280 --> 00:11:05,360 Speaker 1: Uber is hinting that it's back, but it doesn't show 210 00:11:05,440 --> 00:11:08,280 Speaker 1: up on the app in the US or Europe. We 211 00:11:08,320 --> 00:11:12,800 Speaker 1: actually check this. It's a mystery. They've been testing pool 212 00:11:12,920 --> 00:11:16,120 Speaker 1: strategies here and there. But I spoke with them this 213 00:11:16,160 --> 00:11:19,360 Speaker 1: morning and the company said, this is not They have 214 00:11:19,480 --> 00:11:23,360 Speaker 1: nothing to share. This is not something that's being tested broadly. UM. 215 00:11:23,440 --> 00:11:26,479 Speaker 1: But I think we will hear from Lift in particular 216 00:11:26,880 --> 00:11:29,880 Speaker 1: UM in the coming months, especially now that you see 217 00:11:29,920 --> 00:11:32,960 Speaker 1: cities starting to revise maybe even loosen some of their 218 00:11:33,000 --> 00:11:36,720 Speaker 1: own mask updates, which goes to show that perhaps pandemic 219 00:11:36,720 --> 00:11:41,920 Speaker 1: conditions are improving more broadly and rideshare companies are poised 220 00:11:41,960 --> 00:11:45,480 Speaker 1: to benefit from that. Okay, Bloomberg, Jacki Dagulas We'll see 221 00:11:45,480 --> 00:11:48,240 Speaker 1: how this evolves. As always, thank you. Coming up, we're 222 00:11:48,240 --> 00:11:50,320 Speaker 1: gonna hear from ft X ee O Sam Bankman Freed 223 00:11:50,400 --> 00:11:53,160 Speaker 1: on all things crypto, from regulation to stable coins to 224 00:11:53,480 --> 00:11:56,440 Speaker 1: Elon Musk, and is hinted at Twitter takeover that's next. 225 00:11:56,640 --> 00:12:12,959 Speaker 1: This is Bloomberg f t X founder and CEO Sam 226 00:12:13,000 --> 00:12:16,000 Speaker 1: Bankman Freed, who was recently profiled in a Bloomberg Big 227 00:12:16,040 --> 00:12:18,559 Speaker 1: Take on how he plans to give away his fortune, 228 00:12:18,600 --> 00:12:21,719 Speaker 1: has been vocal about the Musk Twitter controversy and how 229 00:12:21,760 --> 00:12:25,040 Speaker 1: blockchain could revolutionize social media. He's spoke earlier with my 230 00:12:25,080 --> 00:12:27,440 Speaker 1: colleagues Matt Miller and Kaylee Lines and started by talking 231 00:12:27,440 --> 00:12:30,160 Speaker 1: about crypto regulation and how it could change not only 232 00:12:30,200 --> 00:12:33,760 Speaker 1: businesses like f t X, but the way traditional Wall 233 00:12:33,800 --> 00:12:38,480 Speaker 1: Street operates. One of the big things is I think 234 00:12:38,760 --> 00:12:40,800 Speaker 1: that that may provide a pathway for them to get 235 00:12:40,840 --> 00:12:44,079 Speaker 1: involved in digital assets. Um. That that's frankly something I'm 236 00:12:44,120 --> 00:12:46,320 Speaker 1: excited about here. Um. You know, I think a lot 237 00:12:46,360 --> 00:12:49,280 Speaker 1: of them have been waiting for uh, you know, clear 238 00:12:49,640 --> 00:12:53,040 Speaker 1: federal oversight of the space to get involved. Um. I 239 00:12:53,040 --> 00:12:56,640 Speaker 1: think that there are really interesting applications of other asset classes. 240 00:12:56,679 --> 00:12:58,000 Speaker 1: Now you have to be careful when you do that, 241 00:12:58,280 --> 00:13:00,280 Speaker 1: because you have to look at what do existing element 242 00:13:00,280 --> 00:13:04,040 Speaker 1: cycles look like in you know, traditional agricultural commodities. How 243 00:13:04,040 --> 00:13:06,679 Speaker 1: would that interface with the system like this. I think 244 00:13:06,679 --> 00:13:08,520 Speaker 1: it's an interesting question. I think it's one that you 245 00:13:08,559 --> 00:13:11,280 Speaker 1: know needs more thought and certainly, you know, we would 246 00:13:11,280 --> 00:13:15,440 Speaker 1: be looking to start just with doing this for digital assets. Um, 247 00:13:15,520 --> 00:13:17,240 Speaker 1: but but I do think that that, you know, it 248 00:13:17,280 --> 00:13:19,800 Speaker 1: would be really interesting to do a deep dive, um, 249 00:13:19,840 --> 00:13:22,160 Speaker 1: you know, with the CFTC and crucially with the core 250 00:13:22,200 --> 00:13:25,199 Speaker 1: market participants in those areas about how this could you know, 251 00:13:25,240 --> 00:13:26,880 Speaker 1: interface with that. I think when you look at things 252 00:13:26,880 --> 00:13:30,640 Speaker 1: like treasuries, right, I think tokenized treasuries could be really interesting. 253 00:13:30,640 --> 00:13:33,160 Speaker 1: I think you could provide transparency and real time settlement 254 00:13:33,240 --> 00:13:35,920 Speaker 1: of them, getting rid of this sort of like keyser 255 00:13:36,000 --> 00:13:38,000 Speaker 1: q on T two system that we have for various 256 00:13:38,000 --> 00:13:40,720 Speaker 1: asset classes, right with securities, where it takes two days 257 00:13:40,760 --> 00:13:42,560 Speaker 1: to settle a trade, and there's sort of like this 258 00:13:42,640 --> 00:13:45,839 Speaker 1: amount of uncertainty and risk and and exposure during those 259 00:13:45,880 --> 00:13:47,920 Speaker 1: two days. I think it would be really cool to 260 00:13:47,960 --> 00:13:51,880 Speaker 1: see you real time margining, real time risk, and real 261 00:13:51,880 --> 00:13:53,920 Speaker 1: time settlement you know, based on tokens of those. So 262 00:13:53,960 --> 00:13:57,120 Speaker 1: I think there are really interesting applications. Okay, Sam, I 263 00:13:57,120 --> 00:13:59,720 Speaker 1: want to pivot to another story. We even carefully following 264 00:14:00,280 --> 00:14:02,000 Speaker 1: Bloomberg for the last couple of weeks, and I know 265 00:14:02,040 --> 00:14:05,040 Speaker 1: you've been following it. To Elon Musk's bid for Twitter. 266 00:14:05,080 --> 00:14:06,719 Speaker 1: We just had a headline crossing from the New York 267 00:14:06,720 --> 00:14:08,720 Speaker 1: Post that he's willing to invest tend to fifteen billion 268 00:14:08,720 --> 00:14:11,240 Speaker 1: dollars of his own cash for Twitter, whether or not 269 00:14:11,440 --> 00:14:15,840 Speaker 1: he eventually succeeds. You have proposed a decentralized model for Twitter. 270 00:14:15,920 --> 00:14:17,560 Speaker 1: Can you just walk us through that and how you 271 00:14:17,600 --> 00:14:21,200 Speaker 1: think it will be beneficial to the company. Absolutely, and 272 00:14:21,240 --> 00:14:23,320 Speaker 1: I think this would be a really really interesting and 273 00:14:23,360 --> 00:14:26,920 Speaker 1: important innovation in in uh social networks. Obviously, we'd have 274 00:14:27,000 --> 00:14:28,880 Speaker 1: to see how it actually played out, but here's the 275 00:14:28,880 --> 00:14:31,600 Speaker 1: core of it, um right now. One of the big 276 00:14:31,640 --> 00:14:35,400 Speaker 1: problems with social media is there's lots of platforms, and 277 00:14:35,560 --> 00:14:38,600 Speaker 1: all the platforms are completely independent of each other. There's 278 00:14:38,680 --> 00:14:42,160 Speaker 1: no ability to see a tweet on Facebook if you 279 00:14:42,400 --> 00:14:45,240 Speaker 1: message him on Facebook, you know, even what'sapp can't rate it, 280 00:14:45,240 --> 00:14:47,960 Speaker 1: and that that's even the same company, um, And so 281 00:14:48,160 --> 00:14:52,960 Speaker 1: it's just you know, really messy system where there are uh, 282 00:14:53,000 --> 00:14:56,760 Speaker 1: you know, there's no interoperability between different platforms. UM. And 283 00:14:56,960 --> 00:14:59,600 Speaker 1: there's a second problem that you have here is around 284 00:15:00,240 --> 00:15:03,320 Speaker 1: basically moderation, right, Like what is the moderation policy for 285 00:15:03,360 --> 00:15:06,200 Speaker 1: basically all of social media right now? It's like three guys, right, 286 00:15:06,560 --> 00:15:08,920 Speaker 1: it's a people who run three companies who choose what 287 00:15:08,960 --> 00:15:12,080 Speaker 1: doesn't doesn't get censored. Um and and we've seen that 288 00:15:12,080 --> 00:15:14,880 Speaker 1: that is a broken model. Right. We saw a social 289 00:15:14,880 --> 00:15:19,320 Speaker 1: media choose not to censor um misinformation in and get 290 00:15:19,320 --> 00:15:22,200 Speaker 1: absolutely roasted for that decision. And then we saw them 291 00:15:22,240 --> 00:15:26,080 Speaker 1: choose to censor in and get roasted for that decision. 292 00:15:26,480 --> 00:15:29,840 Speaker 1: UM and uh. And so here's the core of what 293 00:15:29,880 --> 00:15:33,480 Speaker 1: I think would be really really exciting, UM would be 294 00:15:34,000 --> 00:15:37,880 Speaker 1: that you take a blockchain, you put the actual underlying 295 00:15:37,920 --> 00:15:41,520 Speaker 1: messages directly on the blockchain. UM. And what that means 296 00:15:41,520 --> 00:15:44,760 Speaker 1: is that any platform in theory could access those same 297 00:15:44,840 --> 00:15:49,040 Speaker 1: sets of messages. UM. And so whether you're using you know, Facebook, 298 00:15:49,080 --> 00:15:52,200 Speaker 1: Twitter or whatever, this sort of like you know platform 299 00:15:52,400 --> 00:15:55,520 Speaker 1: is they're all drawing on all of the messages. They 300 00:15:55,520 --> 00:15:57,480 Speaker 1: can all write to this blockchain, they can all read 301 00:15:57,520 --> 00:16:00,040 Speaker 1: from it, but they are as different interfaces effect of 302 00:16:00,800 --> 00:16:03,520 Speaker 1: living in the same universe. And one of the cool 303 00:16:03,560 --> 00:16:05,760 Speaker 1: things that falls out of that is, first of all, 304 00:16:05,800 --> 00:16:08,600 Speaker 1: you have interoperability between platforms, which solves a lot of 305 00:16:08,640 --> 00:16:11,200 Speaker 1: these network problems and allow us for more competition because 306 00:16:11,200 --> 00:16:14,000 Speaker 1: it means new people can enter this space without being 307 00:16:14,520 --> 00:16:18,680 Speaker 1: miles behind in terms of you know, user based growth. UM. 308 00:16:18,760 --> 00:16:21,320 Speaker 1: But the other thing that it means, UM is that 309 00:16:21,360 --> 00:16:24,240 Speaker 1: when it comes to moderation, you could have different platforms 310 00:16:24,280 --> 00:16:27,080 Speaker 1: making different decisions, right, and so you could have you know, 311 00:16:27,120 --> 00:16:30,000 Speaker 1: two people have two different platforms, but each with the 312 00:16:30,080 --> 00:16:33,600 Speaker 1: same underlying set of message is accessible and so UM, 313 00:16:33,640 --> 00:16:36,560 Speaker 1: you know, they don't have to deal with this this 314 00:16:36,640 --> 00:16:40,160 Speaker 1: network effect problem, but which makes slightly different decisions about 315 00:16:40,160 --> 00:16:43,840 Speaker 1: what to sensor what not to sensor, UM and uh, 316 00:16:44,480 --> 00:16:46,960 Speaker 1: you know, and and that can at least give some 317 00:16:47,040 --> 00:16:50,600 Speaker 1: consumer choice here. It can at least give people, you know, options, Sam, 318 00:16:50,640 --> 00:16:53,720 Speaker 1: I think it's a fascinating idea. And I also had 319 00:16:53,760 --> 00:16:58,000 Speaker 1: seen c Z tweet about it UM on the Elon 320 00:16:58,080 --> 00:17:02,000 Speaker 1: Musk Twitter announcement day. I'm just wondering, have you talked 321 00:17:02,040 --> 00:17:07,080 Speaker 1: to Ellen about this? But I have not talked directly 322 00:17:07,119 --> 00:17:10,679 Speaker 1: to to Ellen about this, UM, but I would be 323 00:17:10,720 --> 00:17:14,120 Speaker 1: excited to UM, I you know, have had some conversations 324 00:17:14,280 --> 00:17:17,480 Speaker 1: with you know, people who are investigating this. I think 325 00:17:17,520 --> 00:17:20,639 Speaker 1: they're they're really cool ideas UM and I would be 326 00:17:20,680 --> 00:17:23,960 Speaker 1: really excited to be, you know, potentially involved in something here, 327 00:17:24,000 --> 00:17:27,199 Speaker 1: whether you're looking at UM you know, I thinking, I 328 00:17:27,240 --> 00:17:30,040 Speaker 1: think the biggest thing would be thinking about how blockchain 329 00:17:30,119 --> 00:17:32,800 Speaker 1: could be applied here UM, you know, maybe as a 330 00:17:32,840 --> 00:17:35,160 Speaker 1: test case first. I'd be excited to help on the 331 00:17:35,200 --> 00:17:39,040 Speaker 1: designing and building of it UM and I, you know, 332 00:17:39,359 --> 00:17:42,919 Speaker 1: on I you know, potentially helping to manage a network 333 00:17:43,000 --> 00:17:46,919 Speaker 1: that that was looking to do this. That was FDx 334 00:17:46,920 --> 00:17:51,280 Speaker 1: founder and CEO Sam Bankman Fried earlier with Matt Miller 335 00:17:51,320 --> 00:17:53,920 Speaker 1: and Kaylee Lines on bloom Brooks Cryptos Show, and speaking 336 00:17:53,960 --> 00:17:57,320 Speaker 1: of Elon Musk and Twitter, the story has been developing 337 00:17:57,400 --> 00:18:00,119 Speaker 1: day by day. Bloom Brook's Ed Ludlow here with more 338 00:18:00,119 --> 00:18:03,000 Speaker 1: on the latest at Apollo now weighing a bid for 339 00:18:03,040 --> 00:18:07,280 Speaker 1: Twitter as well. Yeah, so Bloomberg sources saying Apollo is 340 00:18:07,520 --> 00:18:11,040 Speaker 1: weighing a lot of options right, Either they back Musqus bid, 341 00:18:11,760 --> 00:18:14,960 Speaker 1: or they back a bid from others. We know tomer Rather, 342 00:18:15,080 --> 00:18:18,280 Speaker 1: for example, is eyeing its own bid for Twitter. One 343 00:18:18,440 --> 00:18:22,040 Speaker 1: other media reports suggested that Apollo could even go to 344 00:18:22,080 --> 00:18:25,439 Speaker 1: Twitter and help their defense and say, Yo, let's do 345 00:18:25,520 --> 00:18:28,240 Speaker 1: something together directly. And as with all deals, you get 346 00:18:28,280 --> 00:18:30,760 Speaker 1: these usual caveats that the deal may not happen depending 347 00:18:30,800 --> 00:18:33,520 Speaker 1: on certain circumstances. And I think he heard Kayley allude 348 00:18:33,560 --> 00:18:35,480 Speaker 1: to in that piece of tape. The New York Post 349 00:18:35,560 --> 00:18:37,720 Speaker 1: was kind of the story of the day reporting the 350 00:18:37,760 --> 00:18:40,680 Speaker 1: Elon Musk is struggling to find backers for his own bid, 351 00:18:40,920 --> 00:18:44,480 Speaker 1: but ultimately he's considering putting ten to fifteen billion dollars 352 00:18:44,480 --> 00:18:46,439 Speaker 1: of his own money up front. But he'd still need 353 00:18:46,520 --> 00:18:48,400 Speaker 1: to find the rest of the financing, of course, because 354 00:18:48,440 --> 00:18:50,280 Speaker 1: the figure that is currently on the table is a 355 00:18:50,359 --> 00:18:53,720 Speaker 1: forty three billion dollar valuation of Twitter. Now, one of 356 00:18:53,760 --> 00:18:56,000 Speaker 1: the big takeaways here at is that investors may need 357 00:18:56,040 --> 00:18:59,320 Speaker 1: to buckle up. This could be a long ride. I mean, 358 00:18:59,600 --> 00:19:03,200 Speaker 1: you know, flight could go on for months, right. Yeah, 359 00:19:03,280 --> 00:19:05,520 Speaker 1: But we've discussed on this show. All the experts we 360 00:19:05,560 --> 00:19:07,040 Speaker 1: speak to in the world of M and A say 361 00:19:07,119 --> 00:19:10,040 Speaker 1: that this is playing out as a textbook scenario for 362 00:19:10,040 --> 00:19:12,840 Speaker 1: a hostile takeover. There are lots of options, we think, 363 00:19:13,080 --> 00:19:15,000 Speaker 1: and the New York Post did report this that a 364 00:19:15,119 --> 00:19:18,680 Speaker 1: tender offer directly to shareholders from Musk could come at 365 00:19:18,680 --> 00:19:21,320 Speaker 1: some point in the next ten days. That's great fun 366 00:19:21,400 --> 00:19:23,000 Speaker 1: for me because I like to get up at four 367 00:19:23,040 --> 00:19:25,040 Speaker 1: a m e. Sometime in the morning and wait for 368 00:19:25,080 --> 00:19:27,440 Speaker 1: regulatory filings to come through. And that's how it would 369 00:19:27,480 --> 00:19:30,320 Speaker 1: be communicated. This is the thing. We have to wait 370 00:19:30,359 --> 00:19:33,000 Speaker 1: and see how it plays out. But ultimately the kind 371 00:19:33,000 --> 00:19:35,359 Speaker 1: of hypothesis out there from the street is that Musk 372 00:19:35,520 --> 00:19:37,760 Speaker 1: is going to have to do this in coordination with 373 00:19:37,800 --> 00:19:40,240 Speaker 1: a number of parties, and that does give him options. 374 00:19:40,880 --> 00:19:44,119 Speaker 1: And tomorrow is for twenty, which is, as we know, 375 00:19:44,280 --> 00:19:47,120 Speaker 1: one of Elon Musk's favorite days. I mean, are you're 376 00:19:47,119 --> 00:19:49,560 Speaker 1: going to be staying up all night and waiting for 377 00:19:49,560 --> 00:19:52,639 Speaker 1: that regulatory filing. I will stay up all day, all 378 00:19:52,760 --> 00:19:55,560 Speaker 1: night and four twenties also Tesla earnings and when better 379 00:19:55,800 --> 00:19:58,280 Speaker 1: to announce your intentions for a hostile take over Twitter 380 00:19:58,640 --> 00:20:02,159 Speaker 1: than the earnings core of your other company. Sure, all right, 381 00:20:02,560 --> 00:20:06,800 Speaker 1: ed Ludlow, thank you, We'll be watching well. Florida Governor 382 00:20:06,880 --> 00:20:10,359 Speaker 1: Rond De Santis has escalated a dispute with Disney, asking 383 00:20:10,359 --> 00:20:14,439 Speaker 1: the state's legislator to consider terminating special districts where Disney 384 00:20:14,440 --> 00:20:18,359 Speaker 1: currently has special privileges for example, access to cheaper tax 385 00:20:18,400 --> 00:20:21,720 Speaker 1: exempt financing. This is the first indication that the standoff 386 00:20:21,720 --> 00:20:24,879 Speaker 1: between the state and the entertainment giant over school instruction 387 00:20:24,960 --> 00:20:30,240 Speaker 1: about gender identity and sexual orientation could have consequences for Disney. 388 00:20:30,280 --> 00:20:34,640 Speaker 1: This as plunging shares of Netflix has impacted other companies 389 00:20:34,680 --> 00:20:37,879 Speaker 1: tied to streaming, like Disney, also dropping about five percent 390 00:20:38,240 --> 00:20:42,560 Speaker 1: after hours. Meantime, Airbnb is not only planning to issue 391 00:20:42,600 --> 00:20:45,520 Speaker 1: a lifetime band to the guests behind a mass shooting 392 00:20:45,520 --> 00:20:47,920 Speaker 1: at one of its rentals in Pittsburgh, the company is 393 00:20:47,960 --> 00:20:50,720 Speaker 1: also reportedly looking to take legal action against them. This 394 00:20:50,800 --> 00:20:54,240 Speaker 1: according to the Pittsburgh Post Gazette. Two teenagers were killed 395 00:20:54,520 --> 00:20:58,240 Speaker 1: nine others injured at an underage party early Sunday morning. 396 00:20:58,600 --> 00:21:02,479 Speaker 1: Back Abnb announced a global ban on all parties and 397 00:21:02,560 --> 00:21:05,880 Speaker 1: events after a number of violent incidents. It also blocked 398 00:21:06,000 --> 00:21:09,000 Speaker 1: thousands of rentals at the height of the pandemic due 399 00:21:09,040 --> 00:21:20,840 Speaker 1: to hosts breaking party rules. Welcome back to Bloomer Technology. 400 00:21:20,840 --> 00:21:23,840 Speaker 1: I'm emily changing in San Francisco. Well after a decade 401 00:21:23,880 --> 00:21:26,919 Speaker 1: of meteoric growth that shook Hollywood to its core, and 402 00:21:26,960 --> 00:21:30,680 Speaker 1: Netflix has run into a wall. The streaming service losing 403 00:21:30,760 --> 00:21:34,080 Speaker 1: two hundred thousand subscribers in the first quarter, the first 404 00:21:34,119 --> 00:21:38,600 Speaker 1: time it has said subscribers since shares plumbing and Late 405 00:21:38,640 --> 00:21:42,320 Speaker 1: Trading joining us Now Rich Greenfield of Light shed partners. 406 00:21:42,560 --> 00:21:45,439 Speaker 1: No relation to the shedding of subscribers, Rich, what do 407 00:21:45,480 --> 00:21:48,040 Speaker 1: you think happens here? Look, I think what happens here 408 00:21:48,440 --> 00:21:52,159 Speaker 1: is the content is not resonating the way it should. 409 00:21:52,240 --> 00:21:54,440 Speaker 1: I mean, while they're making a lot of other excuses, 410 00:21:54,520 --> 00:21:57,480 Speaker 1: it's hard to look past the fact that when Netflix 411 00:21:57,480 --> 00:22:00,359 Speaker 1: has had great content, their subscribers have explode it. So 412 00:22:00,680 --> 00:22:03,359 Speaker 1: it certainly seems like there's a connection between some of 413 00:22:03,359 --> 00:22:06,840 Speaker 1: their content, especially their film content. They've put probably five 414 00:22:06,920 --> 00:22:09,159 Speaker 1: billion dollars into the film business and it does not 415 00:22:09,280 --> 00:22:12,000 Speaker 1: appear to be having the type of impact on subscriber 416 00:22:12,040 --> 00:22:14,760 Speaker 1: growth that they expected. So they're making a lot of excuses. 417 00:22:14,760 --> 00:22:18,960 Speaker 1: There's clearly is the supply chain for TVs impacted? Is 418 00:22:18,960 --> 00:22:21,560 Speaker 1: there a big problem in connected TV sales? Shore We've 419 00:22:21,600 --> 00:22:24,199 Speaker 1: seen that with Roku Stock, We've seen that with video Like, 420 00:22:24,240 --> 00:22:26,920 Speaker 1: We've seen this with other companies. But there is no 421 00:22:27,000 --> 00:22:29,920 Speaker 1: doubt that a big chunk of this is Netflix content 422 00:22:30,200 --> 00:22:33,639 Speaker 1: is simply not breaking through the way it has in 423 00:22:33,720 --> 00:22:37,200 Speaker 1: prior years. Netflix says it's gonna zero in on password 424 00:22:37,240 --> 00:22:42,440 Speaker 1: sharing and Shonda rhymes to turn things around. Obviously, Bridgerton 425 00:22:43,320 --> 00:22:46,639 Speaker 1: has been a hit. I'm sure you would agree, But 426 00:22:46,800 --> 00:22:49,040 Speaker 1: what what what? What are not? What are they not 427 00:22:49,119 --> 00:22:53,480 Speaker 1: getting right in content? Remember, there's a lot of competition. 428 00:22:53,520 --> 00:22:55,639 Speaker 1: I mean, they clearly called out competition, but it's not 429 00:22:55,720 --> 00:22:58,520 Speaker 1: like even if you look across Disney Plus and Peacock, 430 00:22:58,600 --> 00:23:01,600 Speaker 1: it's not like there were massive competitive hits this quarter. 431 00:23:01,640 --> 00:23:03,919 Speaker 1: It's not like, you know, Kulu had to drop up, 432 00:23:03,920 --> 00:23:05,399 Speaker 1: but there are not I would not say that there 433 00:23:05,400 --> 00:23:10,080 Speaker 1: were breakout hits that were really competitively pressuring Netflix. You know, 434 00:23:10,119 --> 00:23:12,840 Speaker 1: I think the big question investors are grappling with the 435 00:23:12,880 --> 00:23:15,440 Speaker 1: reason why you see the stock down so much, is 436 00:23:16,040 --> 00:23:20,919 Speaker 1: the question now becomes was was Read Hastings and team 437 00:23:21,000 --> 00:23:24,439 Speaker 1: just too optimistic about how big the streaming market was. 438 00:23:24,480 --> 00:23:26,440 Speaker 1: I mean, we used to talk about six hundred seven, 439 00:23:26,840 --> 00:23:30,240 Speaker 1: eight hundred million ultimate subscribers. Jason Kyler, who just left 440 00:23:30,240 --> 00:23:32,840 Speaker 1: Warner Media, was talking about a billion dollar or billion 441 00:23:32,840 --> 00:23:37,320 Speaker 1: subscriber opportunity. If two hundred million subscribers is sort of, 442 00:23:37,359 --> 00:23:40,840 Speaker 1: you know, starting to near the top, that changes everything 443 00:23:40,960 --> 00:23:44,800 Speaker 1: for how every media company legacy media company, new media company. 444 00:23:45,040 --> 00:23:47,520 Speaker 1: It changes everything if that's the size of the market. 445 00:23:47,920 --> 00:23:49,800 Speaker 1: And I think that's the panic you're seeing in the 446 00:23:49,800 --> 00:23:52,960 Speaker 1: stock is, oh my god, is this is this business 447 00:23:53,000 --> 00:23:57,480 Speaker 1: model far far smaller than people expected. People were looking 448 00:23:57,520 --> 00:24:01,520 Speaker 1: at a multiples of where they are now for the upside, 449 00:24:01,920 --> 00:24:05,639 Speaker 1: not this being increasingly a ceiling. And Emily, I think 450 00:24:05,680 --> 00:24:07,639 Speaker 1: one of the big questions out there is is this 451 00:24:07,720 --> 00:24:10,760 Speaker 1: anyone's fault at Netflix? Like if someone getting fired for this, 452 00:24:11,080 --> 00:24:14,000 Speaker 1: is there going to be executive shake up because of this? 453 00:24:14,600 --> 00:24:18,080 Speaker 1: Or is this really just unavoidable and no one's at fault. 454 00:24:18,240 --> 00:24:20,080 Speaker 1: I think investors are gonna want to know, is someone 455 00:24:20,119 --> 00:24:22,760 Speaker 1: at fault for this? Do you think someone's at fault? 456 00:24:23,760 --> 00:24:26,520 Speaker 1: I mean, look, the content clearly hasn't resonated. I think 457 00:24:26,520 --> 00:24:30,520 Speaker 1: they're gonna have to explain why they feel confident. And 458 00:24:30,560 --> 00:24:32,240 Speaker 1: I mean it sounds like from the press release, it 459 00:24:32,280 --> 00:24:35,240 Speaker 1: definitely sounds like they're ramping investment, they're not pulling back. 460 00:24:36,119 --> 00:24:39,800 Speaker 1: You don't usually ramp investment and quote unquote double down 461 00:24:40,480 --> 00:24:45,399 Speaker 1: on content if you don't believe there's a substantial long 462 00:24:45,520 --> 00:24:48,720 Speaker 1: term market opportunity. So do they believe that they're gonna 463 00:24:48,760 --> 00:24:51,400 Speaker 1: get to six seven hundred million subscribers still and it's 464 00:24:51,440 --> 00:24:54,440 Speaker 1: just not linear the what what Wall Street wants because 465 00:24:54,480 --> 00:24:56,480 Speaker 1: it's odd and I think it's gonna be scary to 466 00:24:56,520 --> 00:25:00,399 Speaker 1: Wall Street if they're ramping spend and they're hitting US ceiling, 467 00:25:00,880 --> 00:25:03,960 Speaker 1: investors are going to panic. That's what they're doing right now. 468 00:25:04,680 --> 00:25:06,920 Speaker 1: So how much do you think the price hikes for 469 00:25:07,040 --> 00:25:10,280 Speaker 1: subscribers have had to do with this? And and what 470 00:25:10,400 --> 00:25:13,280 Speaker 1: about an AD supported model? Our guest of Andre s 471 00:25:13,320 --> 00:25:17,800 Speaker 1: Wanston of TransUnion was suggesting that earlier to offset some 472 00:25:17,840 --> 00:25:21,640 Speaker 1: of these costs. Yeah, look, I um, I know there's 473 00:25:21,640 --> 00:25:23,760 Speaker 1: a lot of investors that would like them to follow 474 00:25:23,760 --> 00:25:27,080 Speaker 1: suit on an AD model. UM continue to not be 475 00:25:27,160 --> 00:25:30,280 Speaker 1: convinced because where an AD model is most successful is 476 00:25:30,320 --> 00:25:33,440 Speaker 1: the US and developed parts of Europe, which is where 477 00:25:33,480 --> 00:25:37,199 Speaker 1: Netflix actually is increasingly mature. So the real benefit to 478 00:25:37,359 --> 00:25:41,000 Speaker 1: doing an AD model UM wouldn't be in places where 479 00:25:41,040 --> 00:25:43,360 Speaker 1: there is an ad market. You know, you could say, 480 00:25:43,359 --> 00:25:46,240 Speaker 1: oh my god, hey in India, would an advertising model help? 481 00:25:46,720 --> 00:25:49,399 Speaker 1: I mean not really? Right, The r proof of the 482 00:25:49,400 --> 00:25:53,080 Speaker 1: subscription services pretty low, and there isn't a robust AD 483 00:25:53,080 --> 00:25:56,240 Speaker 1: market for the streaming services, as companies like Disney no 484 00:25:56,359 --> 00:26:00,320 Speaker 1: well with hot stars. So I'm a little skeptical. While 485 00:26:00,359 --> 00:26:02,480 Speaker 1: I think advertising could you know, create a short term 486 00:26:02,480 --> 00:26:05,200 Speaker 1: spike and subscribers, I don't think it's the answer, and 487 00:26:05,240 --> 00:26:06,960 Speaker 1: I think it brings with it a lot of risks 488 00:26:06,960 --> 00:26:09,439 Speaker 1: and what sort of what makes Netflix unique, especially when 489 00:26:09,440 --> 00:26:11,919 Speaker 1: you've got companies like Amazon and Apple ad free. So 490 00:26:12,200 --> 00:26:15,840 Speaker 1: I don't think this is about advertising being the panacea. 491 00:26:16,000 --> 00:26:19,399 Speaker 1: I think the question is is their content. Can you 492 00:26:19,480 --> 00:26:24,280 Speaker 1: make enough great content to drive subscribers to five six, seven, 493 00:26:24,359 --> 00:26:27,760 Speaker 1: eight hundred million? Is it possible? Or has read Hastings 494 00:26:27,840 --> 00:26:31,080 Speaker 1: changed his mind that the market opportunity is simply not 495 00:26:31,160 --> 00:26:33,760 Speaker 1: that big. And if it isn't that big, why in 496 00:26:33,800 --> 00:26:36,320 Speaker 1: the world are they not cutting back on content expense? 497 00:26:36,560 --> 00:26:38,520 Speaker 1: Those are gonna be the big questions for the call 498 00:26:39,040 --> 00:26:41,800 Speaker 1: in you know, half an hour. Could gaming be the 499 00:26:41,840 --> 00:26:45,959 Speaker 1: panacea or will that just be another money pick? You know, Emily, 500 00:26:46,000 --> 00:26:48,280 Speaker 1: what's crazy is there's really no mention of gaming at 501 00:26:48,320 --> 00:26:50,600 Speaker 1: all in the press release. You know, they actually spent 502 00:26:50,720 --> 00:26:53,960 Speaker 1: considerable time in the press release last quarter and even 503 00:26:53,960 --> 00:26:56,800 Speaker 1: on their conference call last time. There's no mention really 504 00:26:56,840 --> 00:26:59,080 Speaker 1: of gaming. And so the question is, I mean, gaming 505 00:26:59,119 --> 00:27:01,520 Speaker 1: is obviously the nacy stage. It's very early for them. 506 00:27:01,520 --> 00:27:04,280 Speaker 1: It's just started nine months ago, so it's it's not 507 00:27:04,359 --> 00:27:06,840 Speaker 1: as if we can say, you know, why is gaming 508 00:27:06,840 --> 00:27:10,280 Speaker 1: not working yet? Could gaming be this long term solution. 509 00:27:10,359 --> 00:27:12,879 Speaker 1: It's possible, but I don't think in the next two years. 510 00:27:13,240 --> 00:27:15,520 Speaker 1: I doubt gaming is the catalyst for this. I think 511 00:27:15,560 --> 00:27:18,400 Speaker 1: the real question is, is you know they lowered price 512 00:27:18,440 --> 00:27:22,280 Speaker 1: in India. They have very little in terms of subscribers 513 00:27:22,280 --> 00:27:25,560 Speaker 1: in India. Why is it not growing faster given the 514 00:27:25,600 --> 00:27:29,280 Speaker 1: amount of spending they've had in India? Is it? Is 515 00:27:29,320 --> 00:27:31,879 Speaker 1: it just they can't seem to break through. Do they 516 00:27:31,920 --> 00:27:35,600 Speaker 1: have the wrong content mix or strategy? But subscribers in 517 00:27:35,640 --> 00:27:38,040 Speaker 1: the eight pack region actually had slower growth year over 518 00:27:38,200 --> 00:27:40,760 Speaker 1: year in Q one this year than last year despite 519 00:27:40,800 --> 00:27:44,000 Speaker 1: lower pricing in one of their biggest markets, India. Sort 520 00:27:44,000 --> 00:27:47,840 Speaker 1: of hard to understand that. Well, it's certainly a new 521 00:27:47,960 --> 00:27:52,480 Speaker 1: chapter beginning for Netflix. Le Chad's Rich Greenfeld as always 522 00:27:52,520 --> 00:27:56,199 Speaker 1: appreciate your quick analysis. Thank you. The question is going 523 00:27:56,240 --> 00:27:58,679 Speaker 1: to be is it time for the hashtag good luck streaming? Emily? 524 00:27:59,200 --> 00:28:01,280 Speaker 1: All right, it's see if we can get that trending 525 00:28:01,320 --> 00:28:05,320 Speaker 1: on Twitter. Risk Thank you? Coming up can bitcoin truly 526 00:28:05,480 --> 00:28:07,520 Speaker 1: be a hedge against inflation? We'll be joined by micro 527 00:28:07,560 --> 00:28:10,600 Speaker 1: Strategy founder and bitcoin bull Michael Sailor to talk about inflation, 528 00:28:10,720 --> 00:28:14,159 Speaker 1: Elon Musk, Jack Dorsey and much more. He's next. This 529 00:28:14,320 --> 00:28:34,919 Speaker 1: is Bloomberg time now for our crypto report, and the 530 00:28:34,920 --> 00:28:37,600 Speaker 1: markets still looking risk averse, with bitcoin sticking in a 531 00:28:37,680 --> 00:28:40,880 Speaker 1: tight range, providing more fodder for critics who don't think 532 00:28:40,960 --> 00:28:44,280 Speaker 1: it's a hedge against inflation. Micro Strategy co founder and 533 00:28:44,280 --> 00:28:47,120 Speaker 1: CEO Michael Sailor might put push back on that idea, 534 00:28:47,160 --> 00:28:50,040 Speaker 1: as I would expect him to. Let's bring him in now. Michael, 535 00:28:50,080 --> 00:28:52,200 Speaker 1: good to have you back with us. You've been saying 536 00:28:52,200 --> 00:28:54,320 Speaker 1: for a long time now you think bitcoin is the 537 00:28:54,360 --> 00:28:56,880 Speaker 1: hedge against the dangers of inflation. But what do you 538 00:28:56,920 --> 00:28:58,400 Speaker 1: make of the fact that it's staying in such a 539 00:28:58,440 --> 00:29:03,680 Speaker 1: tight range and not not really moving on from that mark. Well, 540 00:29:03,760 --> 00:29:06,240 Speaker 1: it's all time frame. If you go back two years 541 00:29:06,360 --> 00:29:10,520 Speaker 1: when micro Strategy bought in uh, it's up by fo 542 00:29:10,840 --> 00:29:14,280 Speaker 1: and it's dramatically outperformed the NASDAC or gold or any 543 00:29:14,320 --> 00:29:17,240 Speaker 1: other asset you could have bought. If you're looking at 544 00:29:17,240 --> 00:29:19,160 Speaker 1: it in a matter of days or weeks or months, 545 00:29:19,200 --> 00:29:22,480 Speaker 1: the traders control it. And right now, there's three types 546 00:29:22,520 --> 00:29:26,320 Speaker 1: of investors in bitcoin. There's the there's the traders, there's 547 00:29:26,320 --> 00:29:30,640 Speaker 1: the technocrats, and there's the maximalist. Uh. The maximalists are 548 00:29:30,680 --> 00:29:34,240 Speaker 1: all in myself, Jack Dorsey, we think that bitcoin is 549 00:29:34,280 --> 00:29:38,520 Speaker 1: an instrument of economic empowerment. So we're just busy educating 550 00:29:38,760 --> 00:29:41,640 Speaker 1: and we sweep free cash flows into it, but we're 551 00:29:41,720 --> 00:29:44,000 Speaker 1: kind of out of the market. Day to day. The 552 00:29:44,080 --> 00:29:46,520 Speaker 1: market price is set by a tug a war between 553 00:29:46,520 --> 00:29:49,920 Speaker 1: the technocrats, people that are pro technology and they think 554 00:29:49,960 --> 00:29:52,560 Speaker 1: it's like the next big tech network like Google or 555 00:29:52,600 --> 00:29:55,920 Speaker 1: Amazon for money well, and the traders who are just 556 00:29:56,000 --> 00:30:00,760 Speaker 1: looking at an uncorrelated asset or correlated asset. So right now, 557 00:30:01,120 --> 00:30:03,600 Speaker 1: both the traders and the technocrats are kind of, you know, 558 00:30:03,880 --> 00:30:05,720 Speaker 1: scared of risk, and so they've both been in a 559 00:30:05,760 --> 00:30:09,120 Speaker 1: bad mood. They had been selling. Uh. What you'll see 560 00:30:09,200 --> 00:30:12,040 Speaker 1: over time is the technocrats will turn into a good 561 00:30:12,040 --> 00:30:15,000 Speaker 1: mood and I'll realize that this is the next great 562 00:30:15,000 --> 00:30:18,640 Speaker 1: big tech network. The maximalist will keep sweeping cash flows. 563 00:30:19,320 --> 00:30:21,400 Speaker 1: So when does that happen? When does bitcoin break this 564 00:30:21,440 --> 00:30:26,880 Speaker 1: correlation with risk assets? If ever? Well, uh, I would 565 00:30:26,920 --> 00:30:30,000 Speaker 1: think that over a four year time frame, you're better 566 00:30:30,040 --> 00:30:33,200 Speaker 1: off to be a maximalist or a tech investor. But 567 00:30:33,600 --> 00:30:37,080 Speaker 1: as long as there's a massively choppy market right uncertainty 568 00:30:37,120 --> 00:30:41,040 Speaker 1: about FED policy and fear uh in the near term, 569 00:30:41,080 --> 00:30:43,560 Speaker 1: I think that the traders will probably dominate the price. 570 00:30:44,120 --> 00:30:45,880 Speaker 1: So you're saying we're gonna have to wait four years 571 00:30:45,920 --> 00:30:50,160 Speaker 1: for this to happen. No, I think sometime on a 572 00:30:50,240 --> 00:30:53,160 Speaker 1: day that is very unexpected, the correlation go will go 573 00:30:53,320 --> 00:30:58,600 Speaker 1: from correlated to risk assets to zero percent. And when 574 00:30:58,640 --> 00:31:01,800 Speaker 1: that happens, then the traders will reverse the polarity of 575 00:31:01,840 --> 00:31:05,160 Speaker 1: their trades, the technologists will start to double down. The 576 00:31:05,200 --> 00:31:09,200 Speaker 1: maximualis will just enjoy the ride. Okay, I have to 577 00:31:09,240 --> 00:31:11,760 Speaker 1: ask you about Twitter with you know, as you say, 578 00:31:11,840 --> 00:31:15,080 Speaker 1: you and Jack Dorsey among the mask maxis. What in 579 00:31:15,160 --> 00:31:18,240 Speaker 1: a huge crypto community on Twitter, you are one of 580 00:31:18,240 --> 00:31:20,920 Speaker 1: the most prolific users. What do you make of Elon 581 00:31:21,000 --> 00:31:25,920 Speaker 1: Musk's hint at an attempt to take over a hostile takeover? Well, 582 00:31:25,960 --> 00:31:28,600 Speaker 1: I mean, I think there's obviously there's a lot of 583 00:31:28,640 --> 00:31:31,960 Speaker 1: frustration everywhere in the world right now that's circulating about 584 00:31:32,000 --> 00:31:34,640 Speaker 1: and you see that reflected on Twitter, and this is 585 00:31:34,680 --> 00:31:38,400 Speaker 1: indicative of that, Um, it's a bit above my pay 586 00:31:38,440 --> 00:31:44,120 Speaker 1: grade to determine how the entire the entire uh chapter ends. 587 00:31:44,640 --> 00:31:49,760 Speaker 1: It definitely makes for interesting watching. But you're a power user. 588 00:31:50,640 --> 00:31:54,200 Speaker 1: Do you want Elon Musk to own Twitter? I think that, 589 00:31:54,480 --> 00:32:00,000 Speaker 1: uh that Twitter is going to be uh fine, regardless 590 00:32:00,040 --> 00:32:04,480 Speaker 1: of what happens. I don't think I mind if if 591 00:32:04,520 --> 00:32:07,400 Speaker 1: he if a Twitter user ended up owning Twitter. I 592 00:32:07,400 --> 00:32:10,560 Speaker 1: think that'd probably be a fine thing. Have you talked 593 00:32:10,560 --> 00:32:11,960 Speaker 1: to Jack about this at all? I mean, I know 594 00:32:12,000 --> 00:32:15,400 Speaker 1: you've been spending a lot of time together. No, No, 595 00:32:15,520 --> 00:32:18,200 Speaker 1: I'm not really involved in this. It's just this is 596 00:32:18,240 --> 00:32:21,440 Speaker 1: not really my, uh my area of expertise. I think 597 00:32:21,880 --> 00:32:25,360 Speaker 1: I'll let people that are focused upon tech stock investing 598 00:32:25,880 --> 00:32:31,200 Speaker 1: decide the fate of Twitter. I'm focused on bitcoin, but 599 00:32:31,320 --> 00:32:34,200 Speaker 1: of course there's a huge crypto community on Twitter, and 600 00:32:34,240 --> 00:32:37,800 Speaker 1: I'm curious what you think the impact could be on 601 00:32:37,840 --> 00:32:40,600 Speaker 1: the crypto community, whether or not you think, for example, 602 00:32:40,680 --> 00:32:45,880 Speaker 1: Twitter should be decentralized. I don't think the Twitter is 603 00:32:45,920 --> 00:32:49,960 Speaker 1: going to be decentralized regardless of the outcome of all 604 00:32:50,000 --> 00:32:53,480 Speaker 1: these discussions. Right now, I think Twitter is a centralized service. 605 00:32:53,840 --> 00:32:56,040 Speaker 1: I think that the only thing we're sure, we can 606 00:32:56,080 --> 00:32:59,760 Speaker 1: decentralizes is bitcoin, which has been very successful, but it's 607 00:32:59,760 --> 00:33:02,920 Speaker 1: a much simpler idea. I think they're trying to decentralize 608 00:33:03,560 --> 00:33:07,720 Speaker 1: highly functional, high speed applications. That's very challenging and no 609 00:33:07,760 --> 00:33:11,640 Speaker 1: one's very successfully done that. Well, yeah, you seem really 610 00:33:11,640 --> 00:33:17,280 Speaker 1: optimistic about Treasury Secretary Janet Yellen's understanding of bitcoin, and 611 00:33:17,320 --> 00:33:19,959 Speaker 1: I'm curious, even though we might be looking at a 612 00:33:19,960 --> 00:33:24,720 Speaker 1: longer timeframe for you know, the divorce of of of 613 00:33:24,720 --> 00:33:28,240 Speaker 1: of bitcoin and UM risk assets, do you think we're 614 00:33:28,240 --> 00:33:32,080 Speaker 1: at an inflection point when it comes to regulation and 615 00:33:32,120 --> 00:33:37,680 Speaker 1: mainstream adoption. Yeah? Absolutely, Um. I think April seventh at 616 00:33:37,680 --> 00:33:40,680 Speaker 1: American University was a really critical speech. I think it's 617 00:33:40,680 --> 00:33:42,880 Speaker 1: probably one of the most important speeches of the century 618 00:33:43,520 --> 00:33:47,680 Speaker 1: because you had a set of deniers, people that said 619 00:33:47,720 --> 00:33:51,280 Speaker 1: that bitcoin is is a mirage or a Ponzi scheme, 620 00:33:52,040 --> 00:33:55,080 Speaker 1: and then you had a set of skeptics that said, well, 621 00:33:55,160 --> 00:33:57,440 Speaker 1: it isn't that, but it's too good to be true, 622 00:33:57,480 --> 00:34:00,080 Speaker 1: and so some government's going to take it away from you. 623 00:34:00,800 --> 00:34:02,840 Speaker 1: And when you have the Sectuary of the Treasury giving 624 00:34:02,840 --> 00:34:07,440 Speaker 1: a speech explaining what decentralized UH networks are and what 625 00:34:07,520 --> 00:34:10,440 Speaker 1: digital property is and what's the totiy Knockamoto means to 626 00:34:10,520 --> 00:34:12,960 Speaker 1: the world. I think it clicks in a lot of 627 00:34:12,960 --> 00:34:18,480 Speaker 1: people's mind that bitcoin is actually technology that's revolutionary, and 628 00:34:18,520 --> 00:34:22,200 Speaker 1: it also clicks that no, it's not getting banned. And 629 00:34:22,280 --> 00:34:25,520 Speaker 1: once you decide it's real technology to improve the world 630 00:34:25,600 --> 00:34:28,680 Speaker 1: and it's not being banned, you're no longer a denier, 631 00:34:29,040 --> 00:34:31,160 Speaker 1: and you can't be a skeptic. So you have to 632 00:34:31,200 --> 00:34:34,480 Speaker 1: move into the trader camp or the technocrat camp, and 633 00:34:34,560 --> 00:34:37,360 Speaker 1: eventually everybody ends up as a maximalist if you understand 634 00:34:37,360 --> 00:34:40,040 Speaker 1: it well enough. So there's a long answer to my 635 00:34:40,120 --> 00:34:42,680 Speaker 1: next question. But give me the nutshell answer. With the 636 00:34:42,719 --> 00:34:46,080 Speaker 1: ethereum merge coming up, what changes? What are you predicting 637 00:34:46,320 --> 00:34:50,160 Speaker 1: or expecting? Yeah, well, they keep pushing it back. But 638 00:34:50,280 --> 00:34:53,400 Speaker 1: I mean, I think this huge questions about what ethereum 639 00:34:53,520 --> 00:34:55,920 Speaker 1: is following that merge, and whether it's a security or 640 00:34:55,960 --> 00:34:59,279 Speaker 1: whether it's property. And I think a lot of people 641 00:34:59,280 --> 00:35:02,600 Speaker 1: have implied that staking networks are digital security is not property. 642 00:35:02,680 --> 00:35:06,440 Speaker 1: So so I just think they're moving into a very uncertain, 643 00:35:06,800 --> 00:35:13,120 Speaker 1: uncertain chapter of their existence. All right, Michael Sailor of 644 00:35:13,160 --> 00:35:15,319 Speaker 1: micro Strategy. Always great to have it here, on the show, 645 00:35:15,360 --> 00:35:26,560 Speaker 1: thanks so much for stopping by. The debut of Crazy 646 00:35:26,640 --> 00:35:30,000 Speaker 1: Rich Asians Back In was a huge cultural moment. It 647 00:35:30,040 --> 00:35:33,320 Speaker 1: helped to usher in more films featuring largely Asian casts, 648 00:35:33,360 --> 00:35:36,399 Speaker 1: including Parasite, which won the Oscar for Best Picture, and 649 00:35:36,760 --> 00:35:40,520 Speaker 1: the critically acclaimed Everything Everywhere, All At Once Out Now. 650 00:35:41,280 --> 00:35:43,960 Speaker 1: Gold House, a nonprofit that was founded to capitalize on 651 00:35:43,960 --> 00:35:46,840 Speaker 1: the momentum of Crazy Rich Asians, is focused on reshaping 652 00:35:47,080 --> 00:35:50,839 Speaker 1: public opinion about the Asian and Pacific islander community. Now 653 00:35:50,920 --> 00:35:53,359 Speaker 1: they're launching a new accelerator class along with a thirty 654 00:35:53,400 --> 00:35:56,440 Speaker 1: million dollar fund called gold House Ventures, to take this 655 00:35:56,520 --> 00:36:00,280 Speaker 1: momentum to Silicon Valley. Joining me now, Eric Fang, generalner 656 00:36:00,320 --> 00:36:02,960 Speaker 1: at gold House Ventures. Eric, great to have you with us, 657 00:36:02,960 --> 00:36:05,960 Speaker 1: So tell us a short origin story of gold House 658 00:36:06,000 --> 00:36:10,480 Speaker 1: and how that evolved to gold House Ventures. Well, Asians 659 00:36:10,520 --> 00:36:15,400 Speaker 1: have long lack of voice in America and a unifying 660 00:36:15,680 --> 00:36:19,120 Speaker 1: organization that bring our why the asked for together and 661 00:36:19,520 --> 00:36:21,360 Speaker 1: the team here at gold House thought that that was 662 00:36:21,400 --> 00:36:25,120 Speaker 1: a huge opportunity, so in we launched what has turned 663 00:36:25,160 --> 00:36:28,520 Speaker 1: out to be the premier collective for Asian thought leaders, creators, 664 00:36:28,560 --> 00:36:31,799 Speaker 1: influencers and business leaders to band together and promote really 665 00:36:31,840 --> 00:36:36,360 Speaker 1: three things, unity, success, and representation for our culture in 666 00:36:36,400 --> 00:36:39,279 Speaker 1: Silicon Valley in particular, what kind of challenges and stereotypes 667 00:36:39,320 --> 00:36:42,319 Speaker 1: do you think Asian founders face when they're pitching, when 668 00:36:42,320 --> 00:36:47,000 Speaker 1: they're trying to raise money. Yeah, that's a great question. Well, um, 669 00:36:47,040 --> 00:36:49,040 Speaker 1: you know in the technology field, and and that's that's 670 00:36:49,160 --> 00:36:52,279 Speaker 1: my background. I'm an engineer by trade. Our representation is 671 00:36:52,360 --> 00:36:56,759 Speaker 1: incredibly strong. Uh, we're about thirty of the overall tech workforce, 672 00:36:57,120 --> 00:36:59,440 Speaker 1: but if you look at C suites, we are in 673 00:36:59,480 --> 00:37:02,600 Speaker 1: the single agents. So I think Asians have been given 674 00:37:02,680 --> 00:37:06,759 Speaker 1: a lot of opportunity to participate in tech, but not 675 00:37:06,840 --> 00:37:09,840 Speaker 1: participate at the highest levels. And then when you factor 676 00:37:09,880 --> 00:37:12,959 Speaker 1: in not Asians, not all Asians are are are the same. 677 00:37:13,120 --> 00:37:16,120 Speaker 1: You know, we're very very wide diverse culture. Um. So 678 00:37:16,160 --> 00:37:18,680 Speaker 1: you have East Asians like myself that I think have 679 00:37:18,680 --> 00:37:22,280 Speaker 1: been afforded lots of fantastic opportunities. But there are women 680 00:37:22,320 --> 00:37:25,239 Speaker 1: that have been marginalized, Southeast Asians that suffer a lot 681 00:37:25,239 --> 00:37:28,120 Speaker 1: of systemic racism and bias against them. And for us 682 00:37:28,239 --> 00:37:30,520 Speaker 1: as a community, we really need to do better to 683 00:37:30,560 --> 00:37:32,120 Speaker 1: lift each other up. And that's why gold House is 684 00:37:32,160 --> 00:37:35,400 Speaker 1: so important as a way to bring everyone together, not 685 00:37:35,480 --> 00:37:38,600 Speaker 1: just these Asians, not just men, but women, Southeast Asians, 686 00:37:38,600 --> 00:37:42,919 Speaker 1: people from Indonesia, Cambodi, Vietnam, across the entire community. Uh. 687 00:37:43,000 --> 00:37:46,359 Speaker 1: That is really our focus. You've brought in some big 688 00:37:46,440 --> 00:37:50,560 Speaker 1: name backers and mentors like Tony Schu of door Dash 689 00:37:50,680 --> 00:37:54,799 Speaker 1: Finance CEO Chong Pung jaws Chen who helped found YouTube. 690 00:37:55,000 --> 00:37:57,759 Speaker 1: What are they bringing to the table and how are 691 00:37:57,800 --> 00:38:02,120 Speaker 1: they helping your current class of founder. Well, Um, the 692 00:38:02,200 --> 00:38:04,759 Speaker 1: number one thing that they do for us as they 693 00:38:04,800 --> 00:38:08,840 Speaker 1: serve as a example of great representation that can inspire 694 00:38:08,920 --> 00:38:12,920 Speaker 1: the next generation of leaders. Uh. Uh, Steve and Tony 695 00:38:13,120 --> 00:38:18,120 Speaker 1: and c Z incredibly brilliant, successful entrepreneurs, but also reserved. 696 00:38:18,360 --> 00:38:22,520 Speaker 1: Um also very quiet, humble and Uh. We want to 697 00:38:22,560 --> 00:38:25,360 Speaker 1: be the megaphone that they may not want to be 698 00:38:25,360 --> 00:38:29,240 Speaker 1: because it's so important for us to showcase that our people, 699 00:38:29,320 --> 00:38:32,960 Speaker 1: our community can achieve those levels of success, shadow those 700 00:38:33,000 --> 00:38:37,520 Speaker 1: bamboo ceilings, breakout and um and really inspire others. So 701 00:38:38,000 --> 00:38:40,480 Speaker 1: that's what they bring. They they their success is what 702 00:38:40,560 --> 00:38:43,720 Speaker 1: we can hopefully build the next generation of great Asian leaders. 703 00:38:43,719 --> 00:38:47,080 Speaker 1: On top of you're competing with traditional venture capital funds. 704 00:38:47,080 --> 00:38:50,920 Speaker 1: How will you measure success. Well, that's a really interesting 705 00:38:50,920 --> 00:38:53,920 Speaker 1: model that we've decided to set up your gold House Ventures. 706 00:38:53,960 --> 00:38:57,920 Speaker 1: So um, first and foremost, we are a for profit initiative. 707 00:38:58,239 --> 00:39:01,080 Speaker 1: We have great LPs like Tony I see, like CZ 708 00:39:01,520 --> 00:39:04,200 Speaker 1: that we want to help deliver a great, great to 709 00:39:04,239 --> 00:39:06,160 Speaker 1: return on their capital. We consider it an honor of 710 00:39:06,239 --> 00:39:09,239 Speaker 1: privilege that they've chosen to give us their capital and 711 00:39:09,360 --> 00:39:12,600 Speaker 1: it is our responsibility to show great returns of that capital. 712 00:39:12,640 --> 00:39:15,520 Speaker 1: So for them it is very much a poor profit initiative. 713 00:39:15,600 --> 00:39:18,720 Speaker 1: But for the gold House Collective, for the general partners 714 00:39:18,760 --> 00:39:22,480 Speaker 1: like myself and my partner's Megan and being Chen. For us, 715 00:39:22,560 --> 00:39:24,920 Speaker 1: it is a nonprofit initiative, So all of our fees 716 00:39:24,920 --> 00:39:28,200 Speaker 1: and carry actually go back to the nonprofit. So uh, 717 00:39:28,280 --> 00:39:31,480 Speaker 1: this dual goal, this dual strategy, I think it is 718 00:39:31,600 --> 00:39:33,480 Speaker 1: very unique to them value and as I like to 719 00:39:33,480 --> 00:39:35,359 Speaker 1: tell our LPs, we want to make them a lot 720 00:39:35,440 --> 00:39:36,960 Speaker 1: of money, but we want them to feel good about 721 00:39:37,000 --> 00:39:39,480 Speaker 1: at the same time. And what that's really opened up 722 00:39:39,480 --> 00:39:43,680 Speaker 1: the doors for is tremendous support from the community. We 723 00:39:43,719 --> 00:39:46,440 Speaker 1: have a great not only network of LPs, but we've 724 00:39:46,440 --> 00:39:50,840 Speaker 1: got investors from top firms like ny A and Upfront 725 00:39:50,960 --> 00:39:54,239 Speaker 1: Ventures and Excel and general catalysts that want to help 726 00:39:54,320 --> 00:39:56,640 Speaker 1: us out their mission oriented in line with us. So 727 00:39:57,160 --> 00:39:59,239 Speaker 1: I think the really unique thing too that we're doing 728 00:39:59,280 --> 00:40:02,359 Speaker 1: here is that we're very much making venture a team sport. Um. 729 00:40:02,400 --> 00:40:04,720 Speaker 1: You know, historically it's been this kind of individual sport, 730 00:40:04,760 --> 00:40:07,319 Speaker 1: highly competitive, but with gold House Ventures, it is a 731 00:40:07,360 --> 00:40:10,280 Speaker 1: team sport. We're all working together to really try to 732 00:40:10,360 --> 00:40:13,680 Speaker 1: improve the future for our community. Quickly, Eric, before you go, 733 00:40:13,719 --> 00:40:15,640 Speaker 1: I got to ask you about Netflix. You spend a 734 00:40:15,640 --> 00:40:18,960 Speaker 1: long time as an executive at Hulu. You know, the 735 00:40:19,000 --> 00:40:21,759 Speaker 1: streaming business. How bad is this? The fact that we're 736 00:40:21,800 --> 00:40:24,399 Speaker 1: seeing the first loss of subscribers in a decade, has 737 00:40:24,440 --> 00:40:28,399 Speaker 1: the streaming business plateau? You know? I think what this 738 00:40:28,480 --> 00:40:32,000 Speaker 1: is a reminder is how humbling, uh it is that 739 00:40:32,040 --> 00:40:35,319 Speaker 1: in the hundred year history of entertainment UM, it is 740 00:40:35,320 --> 00:40:38,680 Speaker 1: still a hits driven business and no one can manufacture hits. 741 00:40:38,960 --> 00:40:40,600 Speaker 1: We've seen a lot of books and a lot of 742 00:40:40,600 --> 00:40:43,680 Speaker 1: different companies try, like Zinga and the gaming space and 743 00:40:43,760 --> 00:40:46,919 Speaker 1: Netflix in the video space, and no matter how much 744 00:40:46,920 --> 00:40:50,160 Speaker 1: technology and science and engineering and data that you apply 745 00:40:50,200 --> 00:40:53,320 Speaker 1: to it, it's still up to the gods, the gods 746 00:40:53,320 --> 00:40:56,200 Speaker 1: of entertainment to shine good fortune on you. And I 747 00:40:56,200 --> 00:40:58,160 Speaker 1: think that's what what's reflecting in here. It's not so 748 00:40:58,239 --> 00:41:01,719 Speaker 1: much the competition and you know, the account sharing. I 749 00:41:01,760 --> 00:41:05,080 Speaker 1: think it's mostly that where's the next where's the next weigame, 750 00:41:05,080 --> 00:41:07,080 Speaker 1: Where's an next bridge, Where's the next big hit? And 751 00:41:07,160 --> 00:41:10,120 Speaker 1: that's what all entertainment companies are still at the at 752 00:41:10,120 --> 00:41:13,480 Speaker 1: the whim zone, in the hands of the gods, apparently, 753 00:41:13,760 --> 00:41:16,319 Speaker 1: Eric Fang Gold House Ventures. Eric. Great to have you 754 00:41:16,360 --> 00:41:18,359 Speaker 1: back on the show. Thank you. I want to get 755 00:41:18,400 --> 00:41:21,439 Speaker 1: back to that story of the day Netflix at Ludlow back. 756 00:41:21,480 --> 00:41:24,879 Speaker 1: We're waiting for that earnings call to begin at water 757 00:41:24,960 --> 00:41:28,560 Speaker 1: investors gonna be digging into Yeah, a hundred million people 758 00:41:28,640 --> 00:41:31,600 Speaker 1: and households have Netflix but don't pay for it. Where 759 00:41:31,680 --> 00:41:33,520 Speaker 1: are they how do they get around that? As we 760 00:41:33,560 --> 00:41:35,640 Speaker 1: just had from Mereric content is king, what does the 761 00:41:35,680 --> 00:41:38,680 Speaker 1: pipeline look like? Two hundred thousand customers lost in the 762 00:41:38,719 --> 00:41:41,080 Speaker 1: first quarter, four coasts of two million lost in the 763 00:41:41,160 --> 00:41:43,880 Speaker 1: second quarter. Where are they being lost? Which markets are 764 00:41:43,880 --> 00:41:47,520 Speaker 1: having pain? Those are the big questions, all right, Uh 765 00:41:47,680 --> 00:41:51,680 Speaker 1: at Ludlow, waiting for that Netflix earnings call to begin again. 766 00:41:51,880 --> 00:41:55,879 Speaker 1: Losing two hundred thousand subscribers, the first time Netflix has 767 00:41:55,960 --> 00:41:59,000 Speaker 1: lost subscribers in a decade, the company saying two million 768 00:41:59,080 --> 00:42:02,880 Speaker 1: more to come in the coming quarter. We'll be listening 769 00:42:02,880 --> 00:42:04,719 Speaker 1: into that call that does it for this addition to 770 00:42:05,120 --> 00:42:09,440 Speaker 1: Bloomberg Technology. Join us tomorrow we'll be breaking down Tesla results. 771 00:42:09,600 --> 00:42:12,200 Speaker 1: Steve Wesley, one of the original Tesla board members, will 772 00:42:12,239 --> 00:42:14,080 Speaker 1: be joining us. And make sure to tune in for 773 00:42:14,120 --> 00:42:18,000 Speaker 1: my exclusive conversation with a ws CEO, Adam Salipsky. That 774 00:42:18,080 --> 00:42:22,160 Speaker 1: conversation happening tomorrow three thirty Eastern twelve thirty Pacific right 775 00:42:22,200 --> 00:42:25,680 Speaker 1: here on Bluebrick Television. And check out the podcast as 776 00:42:25,719 --> 00:42:28,759 Speaker 1: always anywhere you get your podcast. I'm Emily Changing in 777 00:42:28,760 --> 00:42:30,720 Speaker 1: San Francisco. This is bloom