WEBVTT - Apple's Promotion in China and Meta's Music Revenue Sharing 0:00:02.200 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.320 --> 0:00:10.880 in Silicon Vallet and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:26.720 Emily Jay. I'm Emily changing Chan Francisco in this sis 0:00:26.720 --> 0:00:29.640 Bloomberg Technology coming up in the next hour. Apple announces 0:00:29.640 --> 0:00:32.559 a rare sales promotion for the iPhone in China. But 0:00:32.840 --> 0:00:36.920 is the discount a bad sign? We'll discuss plus. On 0:00:36.960 --> 0:00:40.320 the latest episode of Keeping Up with TikTok, Meta introduces 0:00:40.360 --> 0:00:42.920 a new revenue sharing feature to help creators make more 0:00:42.960 --> 0:00:46.120 money from videos set to music. What it all means 0:00:46.159 --> 0:00:51.400 for Facebooks and Instagram's efforts to outrun TikTok and the 0:00:51.440 --> 0:00:54.160 flight of tech workers may well be leaving a hole 0:00:54.360 --> 0:00:57.520 in San Francisco. Kanda City recover or the Silicon Valley 0:00:57.560 --> 0:01:01.480 need to start rethinking reinventing itself as a tech huck. 0:01:01.920 --> 0:01:04.080 We'll talk about that later this hour. All of that 0:01:04.120 --> 0:01:05.280 in a moment, But first, I want to get a 0:01:05.280 --> 0:01:07.120 look at Walmart. I want to bring in our Bloombook 0:01:07.080 --> 0:01:10.319 consumer team leader John Edwards. John, what's I take on 0:01:10.520 --> 0:01:14.399 these results? Uh? Well, yeah, it's it's uh, you know, 0:01:14.520 --> 0:01:17.360 obviously to some extent of a surprise, given that Walmart 0:01:17.440 --> 0:01:23.360 had expressed confidence uh previously in how it would handle uh, 0:01:23.400 --> 0:01:26.000 you know, bringing its inventories down. You know, it was 0:01:26.080 --> 0:01:29.840 something of a contrast with Target, which had uh, you know, 0:01:30.160 --> 0:01:34.440 moved aggressively to start, you know, cutting prices more quickly 0:01:34.600 --> 0:01:37.720 to really you know, slash those inventories which have had 0:01:37.760 --> 0:01:40.640 built up at a lot of retailers. Walmart had said 0:01:40.680 --> 0:01:42.959 that it would sort of let them ease down over 0:01:43.000 --> 0:01:45.080 the next couple of quarters. But I think what they're 0:01:45.120 --> 0:01:51.040 seeing is that consumers are even more hit by the 0:01:51.320 --> 0:01:55.960 high inflation than they had expected at Walmart, and so uh, 0:01:56.000 --> 0:01:58.760 you know, they are also having to move more aggressively 0:01:58.800 --> 0:02:03.840 than they had hoped and thus cut prices uh deeper 0:02:03.840 --> 0:02:07.720 than they had hoped to and um and thus you know, 0:02:07.760 --> 0:02:12.640 cut into margins. This from Walmart CEO Doug McMillan. He 0:02:12.639 --> 0:02:15.639 says the increasing levels of food and fuel inflation are 0:02:15.639 --> 0:02:19.800 affecting how customers spend. We're now anticipating more pressure on 0:02:19.880 --> 0:02:22.240 general merchandise in the back half. I mean, this isn't 0:02:22.240 --> 0:02:25.440 going to assuage any fears about a recession, is it. 0:02:25.480 --> 0:02:28.080 I mean, isn't this going to have potentially a big 0:02:28.160 --> 0:02:31.160 impact on markets across the board. Yeah, No, I think 0:02:31.160 --> 0:02:34.200 people are going to be pretty concerned by this because 0:02:34.280 --> 0:02:37.200 you know, again, Walmart you know, had been you know 0:02:37.360 --> 0:02:41.680 out there, uh you know, speaking you know, pretty uh 0:02:41.720 --> 0:02:44.120 brashly about you know, how it was going to be 0:02:44.160 --> 0:02:47.400 able to handle this, uh, this situation without taking any 0:02:47.480 --> 0:02:51.240 drastic steps and uh but you know what, as as 0:02:51.320 --> 0:02:54.600 McMillan was saying there, what they're seeing is that, um, 0:02:55.120 --> 0:02:58.520 you know, the shift in in consumer behavior, which you know, 0:02:58.840 --> 0:03:02.120 um is part of what led to the inventory build 0:03:02.160 --> 0:03:05.760 up in the first place, as people started, uh going 0:03:05.800 --> 0:03:09.560 out more and shifting away from the sort of spending 0:03:09.600 --> 0:03:11.680 on the house and home that they've been doing in 0:03:11.720 --> 0:03:15.680 the past. Now a further shift is happening as people realize, 0:03:15.720 --> 0:03:18.520 you know, these uh you know, food prices and fuel 0:03:18.560 --> 0:03:21.600 prices are really hurting them, and so they're shifting away 0:03:21.639 --> 0:03:25.640 from big ticket items, continuing to spend on food and 0:03:25.760 --> 0:03:28.399 things that they have to that they have to buy. 0:03:28.440 --> 0:03:33.799 But you know, the margins are are lower on this. Yes, indeed, 0:03:33.800 --> 0:03:36.520 Well the pressure is on. John. I really appreciate you 0:03:36.600 --> 0:03:38.920 sharing some extra context there. I'm gonna let you get 0:03:38.960 --> 0:03:42.560 back to covering those Walmart results. John Edwards, whose leads 0:03:42.560 --> 0:03:46.160 are US consumer tech team at Bloomberg. Thank you, um. 0:03:46.360 --> 0:03:49.800 Walmart's results not going to help quell any anxiety among 0:03:49.840 --> 0:03:52.839 tech investors as we await more earnings this week, We're 0:03:52.840 --> 0:03:56.560 expecting results from Apple, Alphabet, Amazon, Meta, all of which 0:03:56.600 --> 0:03:59.160 could give more of an indication about just how large 0:03:59.520 --> 0:04:02.880 or rest looms. Meantime, the market turmoil has sealed, the 0:04:02.920 --> 0:04:05.800 I p O window almost completely shut. At this rate, 0:04:06.480 --> 0:04:09.120 two will be one of the quietest years for public 0:04:09.160 --> 0:04:11.720 offerings in recent memory. For more on this, I want 0:04:11.720 --> 0:04:13.680 to bring in Phil has Like, founder and chief strategy 0:04:13.760 --> 0:04:17.919 officer at Equities and Securities. So, Phil, I assume this 0:04:18.000 --> 0:04:20.440 walmartin news not going to help. The I p O 0:04:20.480 --> 0:04:23.839 window just gonna stay even tight more tightly shut, right. 0:04:24.760 --> 0:04:27.080 I think that's absolutely right. This is kind of just 0:04:27.160 --> 0:04:29.760 another month of more kind of hits to the ip 0:04:29.839 --> 0:04:32.719 O market and its prospects. You know, Walmart maybe think 0:04:32.800 --> 0:04:35.720 like a different company compared to technology companies where it's 0:04:35.760 --> 0:04:38.560 selling milk and staples, but that's still going to feed 0:04:38.560 --> 0:04:41.000 through to other companies as well. I think the real 0:04:41.040 --> 0:04:42.960 eye is going to be on some of these tech stocks, 0:04:42.960 --> 0:04:45.080 and as they report later to the week, I'm sure, 0:04:45.120 --> 0:04:47.920 a lot of bankers and companies that were hoping to 0:04:47.960 --> 0:04:51.640 tap the markets are waiting with dated breath. So are 0:04:52.160 --> 0:04:54.320 is the I p O windows shut across the board 0:04:54.320 --> 0:04:56.640 for all kinds of companies? Or for example, with this 0:04:56.680 --> 0:04:59.080 walmartin news, does it more effect companies that are focused 0:04:59.120 --> 0:05:02.919 on e commerce or you know, is this something happening 0:05:02.920 --> 0:05:06.320 more broadly? Yeah, I think that's totally right. You know, 0:05:06.720 --> 0:05:09.760 we we define so many different companies of being in technology, 0:05:09.839 --> 0:05:12.720 So I think any company that's related to consumer spending, 0:05:12.960 --> 0:05:16.240 maybe it's coming up with solutions for aviation or or 0:05:16.520 --> 0:05:18.640 or groceries are going to be severely impacted. But on 0:05:18.640 --> 0:05:20.000 the other hand, you've got a lot of companies that 0:05:20.040 --> 0:05:22.680 are actually selling direct to enterprises, right, You've got traditional 0:05:22.720 --> 0:05:25.720 software companies, they'll feel less impact from the Walmart news 0:05:25.800 --> 0:05:27.280 that they're going to keep a really close eye on 0:05:27.320 --> 0:05:30.000 some of the bigger tech names as they report. Um. However, 0:05:30.120 --> 0:05:32.160 you know, it's it's kind of a perfect storm where 0:05:32.160 --> 0:05:36.640 we've got still continuing uncertainty about inflation, you've got really 0:05:36.640 --> 0:05:39.880 tough earnings updates and guidance given from companies like Walmart 0:05:39.880 --> 0:05:42.400 and even Snap last week. Uh, and you've also got 0:05:42.400 --> 0:05:44.640 a historically really slow part of the year for I 0:05:44.720 --> 0:05:46.040 p O s as well, So that kind of all 0:05:46.080 --> 0:05:48.240 comes together and you're probably not seeing anything go out 0:05:48.240 --> 0:05:51.599 the door until key four KKR told the information that 0:05:51.680 --> 0:05:54.200 I p O s are a year away. How far 0:05:54.240 --> 0:05:56.960 away do you think they are? I think that's about right. 0:05:57.040 --> 0:06:00.120 I think you've got companies that are preparing everything if 0:06:00.160 --> 0:06:02.520 if the economy does turn around a little bit more quickly. 0:06:02.560 --> 0:06:05.200 You've got UH finance teams at each of these pre 0:06:05.320 --> 0:06:06.800 I p O companies. You know, we speak to them 0:06:06.800 --> 0:06:08.840 a lot, and and they're gearing up to be ready 0:06:08.839 --> 0:06:10.960 when that window kind of comes available. Maybe there's an 0:06:10.960 --> 0:06:13.880 opportunity to que for for the strongest, most marquee names, 0:06:14.040 --> 0:06:16.680 the companies that everyone's super familiar with UM. But other 0:06:16.720 --> 0:06:18.800 than that, I tend to agree it's probably not going 0:06:18.880 --> 0:06:23.920 to be until the closed IPO window. Is creating some 0:06:23.960 --> 0:06:28.200 tension between employees and employers. You've got all of these 0:06:28.200 --> 0:06:31.440 employees working at these startups who thought maybe they were 0:06:31.440 --> 0:06:34.200 going to get an exit and soon that's not happening. 0:06:34.600 --> 0:06:38.640 What are you seeing happening below the surface. Sure, so 0:06:38.680 --> 0:06:40.320 it equities and we have a really good lens and 0:06:40.360 --> 0:06:43.480 to kind of the feelings and the sentiment of employees 0:06:43.480 --> 0:06:45.400 that hold these shares, and a lot of the conversations 0:06:45.400 --> 0:06:48.240 that those employees had with their employer last year was 0:06:48.279 --> 0:06:50.480 that everything's great, We're raising a lot of money, We're 0:06:50.480 --> 0:06:52.719 gonna be able to go public soon and get liquidity, 0:06:52.760 --> 0:06:54.880 and that's certainly not the case. And it's actually being 0:06:55.200 --> 0:06:57.200 kind of exacerbated by the fact that there's been some 0:06:57.279 --> 0:07:01.040 recent news coming out from some companies where insiders, mainly 0:07:01.080 --> 0:07:03.680 executives or founders, actually took a lot of chips off 0:07:03.680 --> 0:07:05.840 the table in two thousand twenty one and better times, 0:07:06.040 --> 0:07:08.359 but didn't make that available to employees. And to me, 0:07:08.480 --> 0:07:10.480 that's kind of serving is a bit of few on 0:07:10.520 --> 0:07:13.720 the fire for what I imagine will be uh probably 0:07:13.760 --> 0:07:16.040 an uprising is a bit extreme, but I think a 0:07:16.040 --> 0:07:18.840 big movement from employees to ask their employers for more 0:07:18.840 --> 0:07:21.640 opportunities for liquidity since it's so important, you know, in 0:07:21.680 --> 0:07:25.240 the spurring economy. Right there's the company Data Robot. The 0:07:25.280 --> 0:07:32.800 CEO just reportedly resigned there in part due to share 0:07:32.840 --> 0:07:35.680 sales that executives were allowed to do that longtime lower 0:07:35.720 --> 0:07:38.960 level employees were not allowed to do. What are the 0:07:39.000 --> 0:07:41.400 ripple effects to see that you see happening here. I mean, 0:07:41.400 --> 0:07:44.040 do you think employees will start walking out looking for 0:07:44.080 --> 0:07:46.360 other jobs or do they not? There are there not 0:07:46.440 --> 0:07:49.160 a lot of choices right now because the market is 0:07:49.200 --> 0:07:52.760 so tight and you've got tech hiring freezes and layoffs 0:07:52.800 --> 0:07:56.760 happening across the board. Well, if you ask any recruiter 0:07:56.800 --> 0:07:59.400 at a you know, a venture back company, if it's 0:07:59.400 --> 0:08:01.720 become easy or too higher engineers, it has not been. 0:08:01.840 --> 0:08:05.000 So I think that the job market for those types 0:08:05.000 --> 0:08:07.280 of folks is still really, really hot, and so I 0:08:07.280 --> 0:08:09.160 think there will be some voting with their feet. The 0:08:09.240 --> 0:08:11.800 data robot situation in particular was really bad in the 0:08:11.840 --> 0:08:13.920 sense that these were executives that only joined the company 0:08:13.960 --> 0:08:15.960 two years ago or so, you know at equities, and 0:08:16.080 --> 0:08:18.320 we see founders that take chips off the table after 0:08:18.480 --> 0:08:20.240 they've put their blood, sweat and tears and built the 0:08:20.280 --> 0:08:22.600 business for the last eight, nine, time eleven years. And 0:08:22.640 --> 0:08:24.880 I think that's actually pretty well received by employees and 0:08:24.880 --> 0:08:27.560 it seems very justified. Um, but when you see some 0:08:27.600 --> 0:08:30.120 senior executive haven't been around very long, that's what really 0:08:30.120 --> 0:08:33.800 frustrates people. So I think, uh, founders and CEOs really 0:08:33.800 --> 0:08:36.960 have a choice. You can be reactive and uh, you know, 0:08:37.040 --> 0:08:38.960 hope that employees stick around, or you can be proactive 0:08:38.960 --> 0:08:41.480 and start talking about liquidity um because it is a 0:08:41.559 --> 0:08:44.880 valve that companies can use to retain their best, uh, 0:08:45.240 --> 0:08:48.000 their best employees without having to dig into more money 0:08:48.080 --> 0:08:50.079 out of their you know, their balance sheets that are 0:08:50.200 --> 0:08:52.160 obviously getting hurt right now in the current economy. So 0:08:52.160 --> 0:08:53.720 I think it's kind of a win win for everyone. 0:08:54.600 --> 0:08:56.839 All Right, Well, it's good to hear about some win 0:08:56.960 --> 0:09:00.040 wins in a situation where it sounds like there's a 0:09:00.040 --> 0:09:03.880 lot of lose losing happening. Equities and Securities Founder and 0:09:03.920 --> 0:09:06.120 CHI strategy officer Phil has always good to have your 0:09:06.120 --> 0:09:09.520 context here on the show. Thanks coming up, iPhones for 0:09:09.559 --> 0:09:13.480 sale but only in China. We will explain why next 0:09:13.760 --> 0:09:26.839 this is Bloomberg. Well, in an unusual move, Apple is 0:09:26.880 --> 0:09:30.360 offering a discount for a slew of products, but only 0:09:30.400 --> 0:09:33.320 in China. iPhones, Apple watches, and air pods will be 0:09:33.360 --> 0:09:35.960 on sale in China for four days as the company 0:09:35.960 --> 0:09:38.880 prepares to roll out the next generation of Apple devices. 0:09:39.160 --> 0:09:41.640 The discounts come as China's economy struggles under the weight 0:09:41.679 --> 0:09:45.280 of multiple COVID lockdowns are Markerman, of course covers all 0:09:45.320 --> 0:09:48.839 things Apple. So this is fairly rare, isn't it, Mark 0:09:49.920 --> 0:09:52.079 This is incredibly rare, right, I mean, right now, in 0:09:52.160 --> 0:09:55.439 the United States, Apples gearing up for a tax holiday. Right, 0:09:55.480 --> 0:09:57.080 so in a handful of states you'll be able to 0:09:57.120 --> 0:10:01.280 buy select Apple products without paying tax. You have Singles 0:10:01.360 --> 0:10:03.920 Day in China, which is a popular shopping day. You 0:10:03.960 --> 0:10:06.520 have Cyber Monday and Black Friday in the US. Right, 0:10:06.960 --> 0:10:10.160 you have education discounts, but a one off, rare shopping 0:10:10.200 --> 0:10:12.880 holiday for a few days in China. This is not 0:10:13.000 --> 0:10:17.880 something I've ever seen before. Now here's something to point out. 0:10:18.040 --> 0:10:22.480 On Thursday, that's Apple earnings day. On Friday is when 0:10:22.480 --> 0:10:25.280 this sale kicks off. As you mentioned, there have been 0:10:25.320 --> 0:10:28.320 economic issues, there have been sales slowdowns, there have been 0:10:28.360 --> 0:10:32.720 economic concerns across China over the last several months. Perhaps 0:10:32.760 --> 0:10:36.160 this might be timed in response the day after earnings 0:10:36.679 --> 0:10:38.920 because maybe the China results, and of course this is 0:10:38.960 --> 0:10:41.560 just speculation aren't going to be as hot as maybe 0:10:41.600 --> 0:10:43.920 some people have expected. And this is a quick and 0:10:43.960 --> 0:10:47.320 easy way to prepare investors, right in analysts to show 0:10:47.559 --> 0:10:49.440 we have a quick solution here, and we think a 0:10:49.520 --> 0:10:53.200 sale nearly hundred dollars in savings on some items right 0:10:53.280 --> 0:10:55.600 on the high end iPhones in particular, those four days 0:10:55.640 --> 0:11:00.520 could boost sales immediately into the fourth quarter. Tell obviously 0:11:00.600 --> 0:11:03.280 looking ahead to earnings in the next two days, we'll 0:11:03.360 --> 0:11:06.760 learn more. There are you saying this is potentially a 0:11:06.800 --> 0:11:10.600 bad sign? I mean potentially a bad sign, right, I 0:11:10.640 --> 0:11:13.080 mean if things are all perfect in terms of sales 0:11:13.160 --> 0:11:15.480 right now in China, I don't know if Apple would 0:11:15.480 --> 0:11:18.360 be doing a random sale like this, right. Their sales 0:11:18.400 --> 0:11:21.600 are usually tied to a specific holiday or a specific event. 0:11:21.800 --> 0:11:24.000 There's none going on in China at the end of 0:11:24.040 --> 0:11:26.280 this week that I could particularly think of. So there's 0:11:26.280 --> 0:11:28.280 a reason that you really want to drum up excitement 0:11:28.360 --> 0:11:31.040 in sales over this, over these products right now, with 0:11:31.120 --> 0:11:33.800 these discounts. I don't really see this as a reason 0:11:33.840 --> 0:11:37.560 to clear inventory, right. I don't think that's necessary. The 0:11:37.600 --> 0:11:39.600 new iPhones aren't going to go on sale for about 0:11:39.640 --> 0:11:42.360 three months now, so they still need write a quarter 0:11:42.440 --> 0:11:45.160 of a year worth of inventory. Many of the products 0:11:45.240 --> 0:11:47.400 that are going on sale for this four day special, 0:11:47.640 --> 0:11:50.880 those products are going to remain on sale even after 0:11:50.920 --> 0:11:53.719 the iPhone fourteen and the other new products come out right, 0:11:53.880 --> 0:11:57.320 the Apple Watches that they're handling with this discount, the 0:11:57.360 --> 0:12:01.600 iPhone se, the iPhone thirteen, the third generation air pods, 0:12:01.800 --> 0:12:03.720 those are all going to be on sale until next 0:12:03.800 --> 0:12:07.240 year anyways. So I don't think this is clearly clearing inventory. 0:12:07.480 --> 0:12:09.800 They clearly want to drop up sales somehow, someway with 0:12:09.840 --> 0:12:13.959 this interesting. All right, we'll keep watching. Of course, We're 0:12:14.000 --> 0:12:16.600 gonna be like watching your coverage of earnings later this week, 0:12:17.080 --> 0:12:18.880 and then we'll be watching to see how this sales 0:12:18.920 --> 0:12:30.120 promotion rolls out. Mark German, thank you well, just call 0:12:30.240 --> 0:12:33.240 the latest episode of Keeping Up with TikTok. Meta is 0:12:33.360 --> 0:12:36.360 now introducing music revenue sharing on Facebook, which will help 0:12:36.400 --> 0:12:40.720 creators make money from videos that use licensed music. It 0:12:40.760 --> 0:12:44.360 might also help Facebook compete with TikTok, or will it. 0:12:44.520 --> 0:12:48.840 Last week, Facebook also changed its timeline algorithm to look 0:12:48.880 --> 0:12:51.280 more like TikTok. Liz Pearl is a former head of 0:12:51.280 --> 0:12:53.400 Team Community in Instagram and now consults with big tech 0:12:53.440 --> 0:12:56.680 companies about the creator economy. Kirk Wagner cover social media 0:12:57.080 --> 0:12:59.120 for US and Kurt I just realized when I read 0:12:59.200 --> 0:13:02.760 that pun that it ties into Kylie Jenner, who just 0:13:02.840 --> 0:13:05.800 tweeted or posted on Instagram saying, stop making Instagram look 0:13:05.840 --> 0:13:07.440 like TikTok. That's right. I actually thought you did that 0:13:07.480 --> 0:13:09.640 on her because he was talking about that was incredible, 0:13:09.760 --> 0:13:14.439 totally unplanned. That's right. Kylie Jenner, obviously huge on Instagram, 0:13:14.920 --> 0:13:18.000 UM said stop trying to make Instagram look like TikTok. 0:13:18.040 --> 0:13:19.600 We just want to see, you know, our friends and 0:13:19.640 --> 0:13:21.680 family on this sap. This is not what this is for. 0:13:21.800 --> 0:13:23.560 You might remember a few years ago, I believe it 0:13:23.600 --> 0:13:26.000 was her she tweeted about Snap and the redesign at 0:13:26.040 --> 0:13:29.400 Snap set the stock down vomiting. That's right, and so 0:13:30.000 --> 0:13:32.320 she has good timing. I think Facebook's earnings are in 0:13:32.320 --> 0:13:34.600 two days, UM, so you know she's getting her voice 0:13:34.640 --> 0:13:38.600 out early. So, Liz, is are all of these efforts 0:13:38.679 --> 0:13:41.880 by Meta to make Facebook and Instagram more like TikTok? 0:13:42.720 --> 0:13:44.839 Is this the right direction or should they be working 0:13:44.840 --> 0:13:50.080 to differentiate Instagram and Facebook from TikTok? Well? I would 0:13:50.120 --> 0:13:52.600 say that TikTok is the best place for views and 0:13:52.640 --> 0:13:56.920 the worst place to build a sustained recurring audience, right, 0:13:57.000 --> 0:14:00.280 And Instagram's identity for so long was as the place 0:14:00.320 --> 0:14:03.320 for building a dedicated audience. It wasn't as susceptible to 0:14:03.400 --> 0:14:06.120 virility or outside forces in general. Right, you can't even 0:14:06.280 --> 0:14:09.160 share links on the platform. So if Reels really does 0:14:09.200 --> 0:14:12.080 go all in for like a TikTok for you page, 0:14:12.120 --> 0:14:14.160 like feed for you is what we call the TikTok 0:14:14.240 --> 0:14:17.120 feed um, which essentially devalues followers. I think that's a 0:14:17.160 --> 0:14:20.400 pretty big departure from the identity wise, and I'm really 0:14:20.400 --> 0:14:24.080 curious to see how that plays out. So I wonder, Kurt, 0:14:24.160 --> 0:14:26.560 you know, on that note, it should Instagram be leaning 0:14:26.600 --> 0:14:29.960 into more of the things that make Instagram great rather 0:14:30.040 --> 0:14:33.640 than just some say copy TikTok. Right. Well, on the 0:14:33.640 --> 0:14:36.360 one hand, that's a way to kind of keep your 0:14:36.440 --> 0:14:39.080 place in this world, right, if everyone's rushing towards the 0:14:39.080 --> 0:14:41.960 same spot, uh, you know, they're kind of giving that up. 0:14:42.120 --> 0:14:44.040 On the other hand, clearly what they're seeing behind the 0:14:44.040 --> 0:14:47.360 scenes is motivating this, right, And so if your Instagram 0:14:47.400 --> 0:14:49.520 and Liz would know this you know better than I would. 0:14:49.520 --> 0:14:52.560 But if your Instagram and you're seeing people maybe leave 0:14:52.920 --> 0:14:55.960 or spend more time somewhere else, the reality is Facebook 0:14:56.000 --> 0:14:58.320 is always just chasing that attention, right, And so that's 0:14:58.360 --> 0:14:59.880 what's going to happen, but you're right, maybe the long 0:15:00.120 --> 0:15:03.240 term keeping that foothold kind of with friends and family 0:15:03.280 --> 0:15:05.640 would be would be a smarter play given that you 0:15:06.000 --> 0:15:08.880 worked at Instagram for so many years, Liz, is that 0:15:08.920 --> 0:15:12.480 what's happening internally? Are they watching TikTok and just thinking 0:15:12.480 --> 0:15:15.640 about how to keep up? Well, I can't speak to 0:15:15.680 --> 0:15:17.840 what's happening internally there right now, but it reminds me 0:15:17.920 --> 0:15:20.080 a bit of Stories Launched to be honest, which I was, 0:15:20.240 --> 0:15:24.160 which I was there for. I mean, um, you know, people, 0:15:24.280 --> 0:15:26.520 there's a lot of dialogue around that, people thinking it 0:15:26.600 --> 0:15:28.640 wasn't going to be successful, and actually there was a 0:15:28.720 --> 0:15:31.320 huge market for people who are not who that format 0:15:31.400 --> 0:15:33.960 was perfect for. But we're not necessarily using Snapchat, and 0:15:34.000 --> 0:15:36.560 I do think we think of TikTok is pretty ubiquitous, 0:15:37.160 --> 0:15:39.440 but there is a market for people who love that 0:15:39.520 --> 0:15:42.320 format and both creating a consuming content in that format 0:15:42.320 --> 0:15:44.120 who might not necessarily got on TikTok, So there is 0:15:44.160 --> 0:15:47.960 an opportunity area there. Of course, what is the value 0:15:47.960 --> 0:15:51.120 proposition to creators at this point? You know, if if 0:15:51.120 --> 0:15:54.440 you're a creator, where do you decide to invest your 0:15:54.480 --> 0:15:59.160 time given the options right now? Really depends on what 0:15:59.200 --> 0:16:00.920 your goal is and what type of content you want 0:16:00.920 --> 0:16:03.280 to create. But I do think for younger people in general, 0:16:03.920 --> 0:16:06.200 like I, I do believe in adapting to what young 0:16:06.240 --> 0:16:10.480 people want. And you know, mobile video tools, really good 0:16:10.480 --> 0:16:13.040 mobile video editing tools. I think it's very TikTok's very 0:16:13.120 --> 0:16:16.760 underrated for for for the how good they're mobile, easy 0:16:16.840 --> 0:16:18.840 and good their mobile video editing tools, or when they 0:16:18.880 --> 0:16:21.440 launched just forced us all like every platform, that sort 0:16:21.480 --> 0:16:24.600 of up their game there, and that's a net good, right, 0:16:24.680 --> 0:16:28.200 giving Giving young people the tools that they want and 0:16:28.280 --> 0:16:30.560 already are using to be able to communicate across more 0:16:30.560 --> 0:16:32.560 platforms a good thing. I think competition is a really 0:16:32.640 --> 0:16:35.640 good thing among social platforms. It might be an unpopular opinion, 0:16:35.640 --> 0:16:39.560 but it's great for TikTok. I had some competition and Kent. 0:16:39.600 --> 0:16:42.040 There's obviously a competition for eyeballs and attention, but there's 0:16:42.080 --> 0:16:45.200 competition for creators. You know, talk to us about how 0:16:45.240 --> 0:16:47.840 that competition is playing out. I mean, part of what 0:16:47.960 --> 0:16:51.560 has made TikTok so successful is the music, which is 0:16:51.680 --> 0:16:55.120 what these new changes that meta are geared towards, right, 0:16:55.160 --> 0:16:57.600 and because that drives culture, right, those are the those 0:16:57.600 --> 0:16:59.800 are the types of songs that people want to see 0:17:00.520 --> 0:17:02.640 to pair that with your video. But also, I mean, 0:17:02.760 --> 0:17:05.320 let's be real, this will also comes down to business, right, 0:17:05.320 --> 0:17:08.120 if you're a creator, where can you not only get 0:17:08.160 --> 0:17:10.359 the most views, but where you can you monetize those views? 0:17:10.359 --> 0:17:13.640 And that's why YouTube has historically been such a great 0:17:13.640 --> 0:17:16.600 place for creators, better than Facebook for video, because it's 0:17:16.680 --> 0:17:19.240 easier to make money there. Right, we saw Vine, Vine 0:17:19.280 --> 0:17:21.520 was great. Vine was TikTok. Before it was TikTok, there 0:17:21.560 --> 0:17:23.400 wasn't a great way for any creators to make money 0:17:23.440 --> 0:17:25.720 on Vine, and they went to other places, right, And 0:17:25.800 --> 0:17:27.600 so I really think it's going to come down to 0:17:27.720 --> 0:17:30.320 which platform can give people a chance to make a 0:17:30.359 --> 0:17:33.000 living off. There's a whole graveyard of these social media 0:17:33.040 --> 0:17:35.240 platforms there are. Because I wonder what you make of 0:17:35.320 --> 0:17:37.560 Kylie Jenner's comments, I mean, Kurt brought up I mean 0:17:37.840 --> 0:17:41.080 the Kylie curse Snap. Some people think Snap has never 0:17:41.160 --> 0:17:44.600 been the same since what Kylie Jenner said about Snap. 0:17:44.640 --> 0:17:46.919 But what do you think about this idea that at 0:17:47.000 --> 0:17:51.280 least one celebrity power user doesn't want Instagram to look 0:17:51.440 --> 0:17:55.360 more like TikTok and maybe once Instagram to be Instagram. 0:17:55.560 --> 0:17:58.760 I mean, I think anybody who's business, which hers largely 0:17:58.920 --> 0:18:01.359 is an Instagram a way that it wasn't even it 0:18:01.440 --> 0:18:04.000 wasn't even the same on TikTok is predicated on having 0:18:04.080 --> 0:18:06.920 this audience that you developed and having followers be really 0:18:06.920 --> 0:18:09.240 really key in that main feed is going to be 0:18:10.200 --> 0:18:13.240 resistant to this and it resistant to change in general. Right, 0:18:13.280 --> 0:18:15.199 those older generations we are this is this is a 0:18:15.200 --> 0:18:18.359 play that's really catering. Um, it seems like it's catering 0:18:18.400 --> 0:18:21.360 for an audience that is that prefers a different format 0:18:21.720 --> 0:18:23.760 something that I think we're talking about music rights and 0:18:23.880 --> 0:18:26.720 sound like something that also also another very underrated thing 0:18:26.720 --> 0:18:29.240 about TikTok when it launched actually as musically Right, which 0:18:29.280 --> 0:18:31.880 was the first incarnation of TikTok that was really popular 0:18:31.880 --> 0:18:35.399 with tweens, was how central sound was to the platform, 0:18:35.800 --> 0:18:39.400 right like music lip sinking the very first foundational communities 0:18:39.400 --> 0:18:41.800 and that platform where dancers, and there was like there's 0:18:41.880 --> 0:18:44.119 no surprise there that was the case. Their biggest stars 0:18:44.160 --> 0:18:46.840 came out of dancing. And when video became important on 0:18:46.840 --> 0:18:50.760 Facebook and Instagram, sound sound as a feature, right not 0:18:50.760 --> 0:18:53.520 not not the center of their video tools. So I 0:18:53.520 --> 0:18:55.919 think that's been a defining difference between TikTok and these 0:18:55.960 --> 0:18:58.080 other platforms, and it's going to be interesting to see 0:18:58.119 --> 0:19:01.119 phase I hopefully this, you know, the music rights platform 0:19:01.160 --> 0:19:04.679 will will be expanded to real soon and close that 0:19:04.720 --> 0:19:07.879 gap a little quickly. Kurt, what is Facebook said in 0:19:07.920 --> 0:19:12.360 response to the accusations that it's copying rather than developing 0:19:12.400 --> 0:19:14.760 its own. It's not shy. It's not shy about this. 0:19:14.840 --> 0:19:17.320 I spoke to them when they did the news feed 0:19:17.440 --> 0:19:21.679 changes last week, and you know, I said, like, you know, 0:19:21.720 --> 0:19:24.800 people are gonna identify that you're Copper and TikTok, you know, 0:19:24.920 --> 0:19:28.280 and they were kind of like, there, these are good ideas, right, 0:19:28.320 --> 0:19:30.120 same thing they said when stories came out, they said 0:19:30.119 --> 0:19:32.520 simply this is this is a good idea. Right. So 0:19:32.680 --> 0:19:34.200 maybe it's not just who can do it, but who 0:19:34.200 --> 0:19:36.399 can do it best. We shall see, Okay, Kurt Wagner 0:19:36.480 --> 0:19:38.640 for Bloomberg. Thank you Liz Pearl, former head of Team 0:19:38.680 --> 0:19:42.639 Community at Instagram. Really interesting to have your insider perspective today. 0:19:42.680 --> 0:19:53.960 Thank you for joining us. Welcome back to Bloomer Technology 0:19:54.000 --> 0:19:56.439 and Emily Changing in San Francisco. Well, I want to 0:19:56.480 --> 0:20:00.280 turn out to the booming digital health landscape with summer Health, 0:20:00.280 --> 0:20:03.480 a pediatric telehealth startup that's aiming to make responses to 0:20:03.760 --> 0:20:08.159 very common medical questions more accessible through a telehealth platform. 0:20:08.520 --> 0:20:12.000 The idea seems to be resonating with investors. The startup 0:20:12.040 --> 0:20:15.560 just raised a seed round led by Sequoia and Lux Capital. 0:20:15.600 --> 0:20:17.920 Ellen da Silva, CEO and co founder of summer Health, 0:20:18.119 --> 0:20:20.919 joins us now. So Ellen talked to us about the 0:20:21.160 --> 0:20:25.200 idea here the driving premise of summer Health. Yeah, thanks 0:20:25.240 --> 0:20:28.359 for having me, Emily. The idea of mind summer Health 0:20:28.680 --> 0:20:32.080 is a very simple one. We believe that all Americans 0:20:32.119 --> 0:20:34.600 should have a phone number they can text and get 0:20:34.600 --> 0:20:39.080 an answer um staffed by a doctor within fifteen minutes 0:20:39.119 --> 0:20:42.440 for any of their medical needs. This started out of 0:20:42.800 --> 0:20:45.440 my own needs as a mother. So we're very excited 0:20:45.480 --> 0:20:50.520 to launch summer Health today. And you're focusing on pediatric care. 0:20:50.880 --> 0:20:52.760