WEBVTT - Netflix's Bet on Ads and Bitcoin Rewards 0:00:02.360 --> 0:00:05.680 From the heart of where innovation, money and power collive 0:00:06.480 --> 0:00:11.000 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.039 --> 0:00:28.840 Emily Jay. I'm Emily Chinese, San Francisco, and this is 0:00:28.840 --> 0:00:31.760 Bloomberg Technology. Coming up in the next hour. What's old 0:00:32.200 --> 0:00:35.120 is new And that goes for Netflix, which is starting 0:00:35.159 --> 0:00:38.199 to look a lot more like traditional cable as it 0:00:38.240 --> 0:00:42.360 announces its ad supported plan to launch in November. Details 0:00:42.560 --> 0:00:45.680 this hour plus Now you can turn any credit or 0:00:45.760 --> 0:00:49.159 debit card into a Bitcoin rewards car thanks to the 0:00:49.200 --> 0:00:52.440 rewards up slowly. We'll talk about the company's mission to 0:00:52.440 --> 0:00:56.440 make Bitcoin more accessible to all with CEO Alex Adelman 0:00:56.520 --> 0:01:01.279 and investor Alexis Ohanian and of Apple, card users can 0:01:01.320 --> 0:01:05.119 see rewards automatically deposited into new accounts thanks to its 0:01:05.160 --> 0:01:09.559 extended partnership with Goldman Sachs. We'll talk about Apple's continued 0:01:09.840 --> 0:01:12.560 fin tech push. All that in a moment, but first, 0:01:12.560 --> 0:01:15.520 stock surging roaring back from that sell off sparked by 0:01:15.520 --> 0:01:18.560 heart inflation numbers. How to tech fair well, Our Ed 0:01:18.640 --> 0:01:20.920 Ludlow has been watching it all day, Ed, what did 0:01:20.920 --> 0:01:22.880 you see? Yeah, I mean it was a wild ride. 0:01:22.920 --> 0:01:26.479 The hot CPI or inflation print from September really reinforce 0:01:26.600 --> 0:01:29.080 this idea that the FED is going to be aggressive 0:01:29.160 --> 0:01:33.880 or remain aggressive with its rate hike path. But the 0:01:33.880 --> 0:01:36.319 market kind of stayed sanguine. When we look at volatility 0:01:36.400 --> 0:01:39.800 data like the cbo E VIX or VIX index, you know, 0:01:39.959 --> 0:01:42.200 the market didn't seem to panic, and it kinds surging 0:01:42.240 --> 0:01:44.840 back on the NAZA one hundred and the SMP five 0:01:44.920 --> 0:01:48.160 under we saw swings of more than five percent, five 0:01:48.200 --> 0:01:50.360 to six percent at one point. Yet the NASA one 0:01:50.400 --> 0:01:52.760 hundred was down by three percent. And if you allow me, 0:01:53.040 --> 0:01:56.480 glets get technical. Let's get technical together and look at 0:01:56.480 --> 0:02:00.680 this Bloomberg terminal chart because it was interesting. Technical levels 0:02:00.760 --> 0:02:02.840 did seem to play a key role here. At one point, 0:02:02.880 --> 0:02:06.840 the benchmark SMP five hundred was was down back below 0:02:08.360 --> 0:02:10.800 below its post pandemic rally, you know, at their thirty 0:02:10.840 --> 0:02:13.760 five mark, and that seems to trigger some program buy. 0:02:13.840 --> 0:02:16.120 And what I'm saying, in other words, is the algoes 0:02:16.200 --> 0:02:18.240 kicked in to rebalance the market, and that was a 0:02:18.320 --> 0:02:24.239 key factor this Thursday. So let's dig into tech and 0:02:23.919 --> 0:02:26.800 and and how tech fairty here because there it's been 0:02:26.840 --> 0:02:30.280 an absolutely dreadful a few days yeah, a few days 0:02:30.280 --> 0:02:34.080 and a few weeks. Right while rates have been pushing higher, 0:02:34.120 --> 0:02:37.160 you know, the NASA one hundred, NYC Fang Plus Index, 0:02:37.680 --> 0:02:40.240 the Philadelphia Semiconductor INEXT, you name it, they've all kind 0:02:40.240 --> 0:02:43.320 of underperformed the broader market. In this case, we're looking 0:02:43.360 --> 0:02:46.720 at the SMP five hundred is the benchmark for US equities, 0:02:46.760 --> 0:02:49.440 and we know the story, right, Higher rates discount the 0:02:49.440 --> 0:02:52.560 present value of future profits, particularly for corners of the 0:02:52.600 --> 0:02:56.399 tech market that a preprofit or trade has stretched multiples. 0:02:56.440 --> 0:02:59.359 But there is debate out there about how tech fairs 0:02:59.440 --> 0:03:01.720 because when you think about the megacaps, for example, you 0:03:01.720 --> 0:03:04.440 look at the names like Microsoft and Google, they're down 0:03:04.480 --> 0:03:07.760 more than thirty percent year to date, really trailing the 0:03:07.880 --> 0:03:11.440 SMP five. But there's also confidence that in a recession 0:03:11.480 --> 0:03:13.960 re environment, and if the FED goes too far with 0:03:13.960 --> 0:03:16.360 with rate heights, we do have a recession. In that 0:03:16.440 --> 0:03:19.840 recession we environment megacap tech fares better because it has 0:03:19.880 --> 0:03:23.080 an entrenched market position, strong balance sheet. We're not seeing 0:03:23.120 --> 0:03:25.359 that play out in the market right now, but there 0:03:25.440 --> 0:03:27.800 is a feeling that if we do move towards the 0:03:27.840 --> 0:03:30.799 word recession in substantive terms, that you might see tech 0:03:31.080 --> 0:03:35.240 as a strong play, and we can't talk about markets 0:03:35.240 --> 0:03:39.200 without talking chips. Obviously, a huge week in the semiconductor 0:03:39.240 --> 0:03:42.560 industry so far, on one that maybe they'd rather forget. 0:03:42.720 --> 0:03:45.520 But but how are we trending? Yes, so the Philadelphia 0:03:45.520 --> 0:03:48.120 semi coonductor in nex or SOCKS was higher on Thursday 0:03:48.240 --> 0:03:51.360 after five straight days of declines. It's been really downtrodden, right. 0:03:51.400 --> 0:03:53.920 We've been talking all week about how there's a real 0:03:54.040 --> 0:03:57.440 slow down in consumer electronics and the PC market, in 0:03:57.480 --> 0:04:00.680 other words, the end markets where those chips go into. 0:04:00.840 --> 0:04:04.000 The latest news overnight was from TSMC, one of the 0:04:04.080 --> 0:04:07.320 leading fabs in the world, that cut capital spending plans, 0:04:07.320 --> 0:04:09.200 and that's a real signal to the world of tech 0:04:09.400 --> 0:04:13.480 that it's expecting a slowdown in demand for chip manufacturing. 0:04:13.520 --> 0:04:15.440 The other big story, of course, playing out is this 0:04:15.960 --> 0:04:19.760 ramp up intentions between the US and China. But we're 0:04:19.760 --> 0:04:22.120 on an upward trajectory at least for Thursday, and as 0:04:22.400 --> 0:04:24.760 we've shown in the last couple of minutes on the screen, 0:04:24.839 --> 0:04:27.680 the SOCKS has really underperformed the broader market to date. 0:04:27.920 --> 0:04:30.520 The question is when do we bottom out and how 0:04:30.600 --> 0:04:32.760 much further does that slow down in demand for the 0:04:32.920 --> 0:04:35.320 end markets for chips. How much further does that have 0:04:35.400 --> 0:04:41.919 to run? All right, I'm low, thank you. Meantime, Netflix 0:04:41.960 --> 0:04:45.560 will reduce introduce an advertising supported plan on November three, 0:04:45.680 --> 0:04:50.400 charging a seven dollars a month for subscriptions. The streaming 0:04:50.400 --> 0:04:53.400 service hopes to attract price sensitive customers at a time 0:04:53.400 --> 0:04:57.640 when growth has plateau. Joining us now Chris Paul Mary 0:04:57.680 --> 0:05:00.240 of course who covers helps us cover Netflix in the 0:05:00.320 --> 0:05:03.479 entertainment industry. So how competitive? Chris? Would you say? This 0:05:03.560 --> 0:05:06.919 price tag is very competitive? You know, this was a 0:05:06.960 --> 0:05:10.240 lot lower than people anticipated. Seven dollars a month is 0:05:10.279 --> 0:05:13.719 a dollar below what Disney plus his new ad supported 0:05:13.760 --> 0:05:16.800 service is going to be dollar below Hulu, three dollars 0:05:16.839 --> 0:05:21.400 below the HBO Max adds supported service. This is really Netflix, 0:05:21.440 --> 0:05:22.960 you know, putting a stake in the ground and say 0:05:23.040 --> 0:05:25.560 we are here to get more customers out of this 0:05:25.600 --> 0:05:31.640 new plan. Talk to us about the bigger picture and 0:05:32.000 --> 0:05:33.880 you know how this will play out. And you know 0:05:33.920 --> 0:05:36.520 what we've talked about is a sea of streaming services. 0:05:36.880 --> 0:05:38.919 You know, so many options out there in terms of 0:05:38.960 --> 0:05:41.919 where to get your content. You know, is it is 0:05:41.920 --> 0:05:45.160 it really this price that gives Netflix that much more 0:05:45.600 --> 0:05:48.640 of an edge well, this, this is a big moment 0:05:48.640 --> 0:05:51.760 in the evolution of streaming because you know, Netflix founder 0:05:51.800 --> 0:05:54.599 Rein Hastings at Lauden, you know, fought having ads on 0:05:54.640 --> 0:05:56.839 his service. He thought that, you know, and not having 0:05:56.880 --> 0:06:00.400 ads was a big differentiator from traditional TV. Of course 0:06:00.440 --> 0:06:03.920 it was, but we've now seen the whole industry evolved 0:06:03.960 --> 0:06:07.960 towards having various options. You know, Hulu, for examples, has 0:06:08.320 --> 0:06:13.240 built a multibillion dollar business with advertising, and potentially that 0:06:13.279 --> 0:06:17.159 will be the same at Netflix. And so everyone now 0:06:17.200 --> 0:06:20.719 has these different tiers of plans giving consumers the options. 0:06:21.080 --> 0:06:23.600 The irony is that the streaming business now looks a 0:06:23.600 --> 0:06:26.960 lot like traditional TV, and unlike traditional TV, you can't 0:06:26.960 --> 0:06:29.600 even record the shows and then skip the ads. You're 0:06:29.640 --> 0:06:31.720 kind of going to force to watch the ads if 0:06:31.760 --> 0:06:35.960 if that's the plan you choose. Our colleague Lucas Shaw 0:06:36.000 --> 0:06:39.120 has a new piece out in Bloomberg business Week and 0:06:39.160 --> 0:06:43.440 the headline is Netflix is Makeover is Everything. Ted Surrandos 0:06:43.480 --> 0:06:48.480 once hated, you know, you mentioned the word evolution, but 0:06:48.680 --> 0:06:50.880 you know, talk to us about just how how different 0:06:50.960 --> 0:06:53.840 this is and and sort of Ted Surrandos and and 0:06:53.920 --> 0:06:58.560 read hastings new vision here. There's so many ways the 0:06:58.600 --> 0:07:02.200 company is changing, change because basically everybody copied it, you know, 0:07:02.279 --> 0:07:04.920 from Disney to Time Warner and that everyone came out 0:07:04.960 --> 0:07:07.480 with streaming services. And so we're seeing you know, not 0:07:07.560 --> 0:07:10.920 just the ad supported things that that that Red didn't want, 0:07:11.320 --> 0:07:14.200 but you know, they're cracking down on passwords sharing, which 0:07:14.240 --> 0:07:17.120 was for a long time they let anybody you know 0:07:17.400 --> 0:07:21.040 share passwords. We're now seeing experimentation with the new Knives 0:07:21.040 --> 0:07:23.520 Out film is going to be in theaters for a 0:07:23.560 --> 0:07:26.440 week before a month before it comes to the streaming service. 0:07:26.680 --> 0:07:29.720 So we're seeing a lot of experimentation and changing in 0:07:29.760 --> 0:07:32.280 the old ways Netflix works. And they have to change 0:07:32.320 --> 0:07:34.320 because you know, there are subscribers were down in the 0:07:34.320 --> 0:07:38.560 first half of this year. Do you think competitors will 0:07:38.600 --> 0:07:40.720 make some moves as a result of what Netflix has 0:07:40.720 --> 0:07:44.400 announced here? And if so, what, well, to some degree, 0:07:44.560 --> 0:07:46.480 you know, Netflix is playing catch up because a lot 0:07:46.480 --> 0:07:49.680 of the other folks have ad supported services and and 0:07:49.760 --> 0:07:52.320 so we're just you know, we're seeing a real evolution 0:07:52.360 --> 0:07:55.320 of the streaming business. We're seeing a lot more price competitions, 0:07:55.320 --> 0:07:58.800 a lot more offers, and you know, and and and 0:07:58.840 --> 0:08:00.680 all of these big media come but these are using 0:08:00.680 --> 0:08:03.960 their traditional TV arms to promote their streaming services. They're 0:08:03.960 --> 0:08:06.960 putting some of their best shows on streaming first. So 0:08:07.240 --> 0:08:09.520 you know, this is that this is a major, major 0:08:09.640 --> 0:08:14.880 fight in the streaming wars for sure. So Chris, what's 0:08:14.920 --> 0:08:18.160 your outlook in terms of, you know, let's say, where 0:08:18.200 --> 0:08:20.280 is the streaming industry a year from now. We've been 0:08:20.280 --> 0:08:23.360 talking about you know, ESPN and potential m and A 0:08:23.520 --> 0:08:26.560 with sports betting. There's all of these, you know, potentially 0:08:27.000 --> 0:08:31.160 interesting and unique moves coming in the midst of a 0:08:31.320 --> 0:08:35.079 major market downturn, you know. And and the streamers aren't 0:08:35.080 --> 0:08:38.280 going to be immune to that, no, And you know 0:08:38.320 --> 0:08:41.240 we've seen cutbacks and spending at Netflix and all and 0:08:41.320 --> 0:08:44.079 a lot of the big companies. But there it's very 0:08:44.120 --> 0:08:46.079 clear this is the way the industry is going. And 0:08:46.240 --> 0:08:50.120 it's almost like shocking. Every week we see now evolution. 0:08:50.240 --> 0:08:53.280 You know, NBC for example, considering taking away an hour 0:08:53.400 --> 0:08:56.079 of prime time you know, big shows Dancing with the 0:08:56.120 --> 0:08:58.959 Stars a big hit on ABC forever you know, now 0:08:59.000 --> 0:09:02.920 exclusively on disne Plus or Kardashians or only on Hulu. 0:09:03.320 --> 0:09:06.960 You know. So we're seeing this massive migration you know, 0:09:07.040 --> 0:09:10.280 before our eyes, and that's not going to change. There 0:09:10.360 --> 0:09:13.080 is certainly going to be continued subscriber growth and streaming, 0:09:13.480 --> 0:09:18.120 and hopefully as the industry grows and rationalizes, is spending 0:09:18.320 --> 0:09:23.480 some profits as well. All right, Bloomberg's Chris Palmry will 0:09:23.559 --> 0:09:27.320 keep following your reporting on this great migration. Thank you 0:09:27.920 --> 0:09:30.960 for your insights. There another story that we continue to watch, 0:09:31.040 --> 0:09:34.040 Meta has urged a judge to reject the FTC's attempt 0:09:34.080 --> 0:09:37.240 to block the company's acquisition of the virtual reality app 0:09:37.400 --> 0:09:40.720 within Unlimited Medicine. The agency's claims about competition in the 0:09:40.760 --> 0:09:45.240 area are based on pure speculation. The FTC alleges Meta 0:09:45.240 --> 0:09:48.000 would kill future competition in a new market. The last 0:09:48.000 --> 0:09:52.120 time they FTC brought such a case back in involving 0:09:52.120 --> 0:10:08.080 sterilization technology, the agency lost. Can a bitcoin become a 0:10:08.160 --> 0:10:11.319 global alternative currency? Well, at least that's the bed of 0:10:11.360 --> 0:10:14.800 the bitcoin shopping rewards app Lolly, which just launched a 0:10:14.880 --> 0:10:18.560 new instore earnings experience giving shoppers the ability to turn 0:10:18.640 --> 0:10:22.840 any credit or debit card into a bitcoin rewards card. 0:10:23.080 --> 0:10:24.440 For more and how it all works and what it 0:10:24.480 --> 0:10:27.400 means to launch this in the middle of major market uncertainty, 0:10:27.400 --> 0:10:29.800 I want to bring in Lolly CEO Alex Ailman and 0:10:29.880 --> 0:10:33.240 Alexis Ohanian, founder of the venture capital firm seven seven six, 0:10:33.240 --> 0:10:37.160 which of course is backing Lolly. So Alexis, of course, 0:10:37.280 --> 0:10:39.120 you know, you're an investor in so many things, but 0:10:39.160 --> 0:10:40.920 I know that Lolly is really important to you. What 0:10:40.960 --> 0:10:44.880 do you think is so unique about this in store 0:10:45.080 --> 0:10:49.160 earnings experience? You know, one of the things that I've 0:10:49.160 --> 0:10:52.320 been obsessed with from my very first investment in crypto, 0:10:52.360 --> 0:10:57.479 which was seating coin based back in is the user experience. 0:10:58.120 --> 0:11:02.360 And something that Lolly has pioneered is bringing this successibility 0:11:02.360 --> 0:11:05.320 in the form of cash back through online shopping to 0:11:05.400 --> 0:11:08.120 so many people, delighting them And so we just made sense, 0:11:08.200 --> 0:11:10.600 especially as the world is you know now moved out 0:11:10.600 --> 0:11:13.160 of lockdowns, um, to make it even easier for people 0:11:13.200 --> 0:11:17.000 to earn bitcoin just simply going through their normal purchasing habits, 0:11:17.080 --> 0:11:21.760 and card boost is a great way to do that. Alex, 0:11:21.800 --> 0:11:24.760 tell us how it all works and how popular, uh 0:11:24.920 --> 0:11:28.640 you expected to be given that we're in a downturn. 0:11:28.880 --> 0:11:33.400 Bitcoins now back below twenty and you know, we just 0:11:33.600 --> 0:11:36.840 got a lot of questions about the future of the economy. Yeah, 0:11:36.840 --> 0:11:38.599 that's a great question. Uh, I mean, we're on a 0:11:38.640 --> 0:11:40.600 mission to save people money, and that money happens to 0:11:40.640 --> 0:11:42.560 be Bitcoin, which we believe is the best money in 0:11:42.559 --> 0:11:45.880 the world. Um, we save people on average about seven 0:11:46.360 --> 0:11:50.600 on every transaction and upwards of so as we most 0:11:50.600 --> 0:11:53.959 likely go into a recession, it's more important now than 0:11:54.000 --> 0:11:56.720 ever to be saving money at all your favorite places. 0:11:56.960 --> 0:11:59.400 And with the launch of this new card Boost Boost Future, 0:11:59.800 --> 0:12:02.679 we went from a thousand merchants to over ten thousand 0:12:02.679 --> 0:12:08.200 merchants that you can earn from Alexis. What is your 0:12:08.280 --> 0:12:11.200 outlook on the markets right now, given you know what 0:12:11.240 --> 0:12:15.400 we're seeing across tech shares, what we're seeing in crypto, 0:12:15.640 --> 0:12:18.960 you know, than the the high inflation numbers. You know, 0:12:19.040 --> 0:12:20.760 Jamie Diamond just said he thinks the markets are going 0:12:20.840 --> 0:12:24.280 to fall another another. How are you thinking about where 0:12:24.320 --> 0:12:28.480 this is going and how is that impacting your investment strategy? Well, 0:12:28.720 --> 0:12:30.320 I think in the on the head, there's a lot 0:12:30.360 --> 0:12:33.520 of uncertainty right now and in a way, uh, you know, 0:12:33.640 --> 0:12:37.920 products that are countercyclical because they're offering opportunities for consumers 0:12:37.960 --> 0:12:42.240 to save money tend to do better in times of 0:12:42.280 --> 0:12:44.640 this kind of economic uncertainty, and so that that's certainly 0:12:44.640 --> 0:12:47.520 factored into why we were so excited about Wally, and 0:12:47.559 --> 0:12:51.400 I think broadly, look, the big advantage to being an 0:12:51.440 --> 0:12:54.640 early stage investor working with CEOs from the very start 0:12:54.800 --> 0:12:58.280 is no matter what the macro picture looks like, uh, 0:12:58.480 --> 0:13:01.640 it is almost is it is always a great time 0:13:01.679 --> 0:13:06.760 and to be starting a company and almost more opportunistic 0:13:06.960 --> 0:13:10.360 during times of this kind of you know, volatility and uncertainty, 0:13:10.360 --> 0:13:13.480 because it really it sobers up a CEO to have 0:13:13.640 --> 0:13:18.040 to focus on making something that people genuinely need, genuinely want, 0:13:18.440 --> 0:13:21.560 that have viable business models and so in away, I 0:13:21.720 --> 0:13:24.000 you know, it's not that I look forward to these times, 0:13:24.040 --> 0:13:25.920 but I do think they bring out the best in 0:13:26.400 --> 0:13:29.640 new entrepreneurs who are solving real problems. And we have 0:13:30.240 --> 0:13:32.880 a lot of real problems that need solving. So we're 0:13:32.880 --> 0:13:36.719 still active, We're still busy investing, and obviously I want 0:13:36.760 --> 0:13:38.960 to see this economy, you know, get its legs back 0:13:38.960 --> 0:13:40.720 on earth. But I agree it's going to take time. 0:13:42.880 --> 0:13:45.760 What are you telling founders right now? You know, how 0:13:45.800 --> 0:13:50.760 are you telling them to navigate choppy conditions? I have 0:13:50.840 --> 0:13:53.840 a lot of keep keep cash on hand, you know, 0:13:53.920 --> 0:13:59.280 focus on reducing burn and really isolate your focus of 0:13:59.320 --> 0:14:03.319 the company around not just growth at all costs, but 0:14:03.320 --> 0:14:07.440 but real scalable growth. Focus on things like revenue, focus 0:14:07.480 --> 0:14:09.600 on it's not going to be about the story of 0:14:09.640 --> 0:14:11.920 how quickly or how much you grew in the next 0:14:11.920 --> 0:14:14.800 six months a year. It's about how much you were 0:14:14.840 --> 0:14:17.760 able to accomplish with the money you had, and ideally 0:14:18.120 --> 0:14:20.840 to get yourself in a casual, positive situation as soon 0:14:20.840 --> 0:14:22.880 as you can, because then you're ultimately controlling your own 0:14:22.880 --> 0:14:26.120 destiny and it's not up to you or it's up 0:14:26.120 --> 0:14:27.840 to other investors whether or not you get to the 0:14:27.840 --> 0:14:31.400 next round. And what's exciting is the companies that ironically, 0:14:31.720 --> 0:14:34.880 you know, don't need those outside sources of capital are 0:14:34.920 --> 0:14:37.640 often the ones that have the most luck fundraising during 0:14:37.640 --> 0:14:40.280 times like this. And you know, we've we've really enjoyed 0:14:40.280 --> 0:14:42.760 seeing the trajectory of Lolly and have have doubled down 0:14:42.800 --> 0:14:47.240 and excited to see it keep growing. Alex talk to 0:14:47.320 --> 0:14:50.480 us about how many people are using Lolly, the demographics 0:14:50.520 --> 0:14:53.120 and how they're actually using their rewards or are they 0:14:53.200 --> 0:14:56.520 holding there are rewards. It's a great question. So we 0:14:56.640 --> 0:14:59.280 launched four years ago and we've already brought on over 0:14:59.360 --> 0:15:03.440 fi thousand users that are earning bitcoin. Uh. These are 0:15:03.480 --> 0:15:07.520 across web with our Chrome extension and mobile with our 0:15:07.560 --> 0:15:10.960 new mobile app. So a lot of users where we 0:15:11.040 --> 0:15:14.320 are their first experience into crypto, and that's what we 0:15:14.360 --> 0:15:16.040 want to do. We want people to we want to 0:15:16.040 --> 0:15:18.320 teach people about bitcoin. We want to teach people about 0:15:18.520 --> 0:15:20.880 the importance of this this new world that we're entering 0:15:20.880 --> 0:15:23.440 into and you know, save people a lot of money 0:15:23.880 --> 0:15:26.320 in the process. Um right now. You know, some of 0:15:26.360 --> 0:15:30.520 the most interesting statistics is that over our users are female. 0:15:30.840 --> 0:15:33.200 When I first um un tell us an eight team, 0:15:33.200 --> 0:15:36.280 when I sort of starting ally with my co founder Map, 0:15:36.960 --> 0:15:39.400 what we found was that less than four percent of 0:15:39.560 --> 0:15:42.360 crypto users were female. And so we're very proud to 0:15:42.600 --> 0:15:46.600 share that we're seeing a dramatic increase given the nature 0:15:46.640 --> 0:15:50.400 of of our business. That's great to hear. Thank you 0:15:50.440 --> 0:15:53.560 for sharing that, Alexis. I'm curious for your outlook on 0:15:53.640 --> 0:15:59.720 crypto in particular as the market downturn continues. Bitcoin, for 0:15:59.800 --> 0:16:03.840 an example, we're seeing slightly lower volume, yes, less volatility, 0:16:03.840 --> 0:16:06.960 but the lower volume is kind of a red flag. 0:16:07.040 --> 0:16:10.440 What's your outlook for bitcoin and and for the broader 0:16:10.880 --> 0:16:15.400 crypto market, you know, beyond the startups and other places 0:16:15.400 --> 0:16:19.480 where you're investing. Well, look, I've I have now been 0:16:19.560 --> 0:16:23.600 investing in building through multiple crypto winters. Uh, this is 0:16:23.640 --> 0:16:27.080 the time when the very best products are getting built, 0:16:27.280 --> 0:16:30.920 when a lot of the Charlotteans and the hype have 0:16:30.920 --> 0:16:33.000 have exited the building and and the folks who are 0:16:33.080 --> 0:16:35.560 left are the folks who are genuinely building and solving 0:16:35.560 --> 0:16:38.640 real problems. And so the next test for this next cycle, 0:16:38.720 --> 0:16:40.680 for us to get to the next crypto spring, which 0:16:40.880 --> 0:16:43.600 I do think will come, is really going to hinge 0:16:43.600 --> 0:16:47.359 on user experience. We you know, we have an opportunity 0:16:47.440 --> 0:16:51.520 now to really expand the base of folks who are 0:16:51.600 --> 0:16:56.680 finding value in this technology. Uh. You know, Bitcoin rewards 0:16:56.680 --> 0:16:59.080 are one way, and I think what's so interesting about 0:16:59.120 --> 0:17:01.840 it is we're also talking about that in the process 0:17:01.880 --> 0:17:05.240 of just having a lot account, basically being given your 0:17:05.320 --> 0:17:10.960 first crypto wallet and through a really elegant user experience 0:17:11.520 --> 0:17:14.399 and e commerce or even now breaking mortar commerce is 0:17:14.400 --> 0:17:16.919 something we all do. Here's some cash back. It just 0:17:16.960 --> 0:17:19.240 happens to be in the form of a cryptocurrency, Bitcoin, 0:17:19.800 --> 0:17:22.399 And I really believe five ten years out, you know, 0:17:22.440 --> 0:17:24.600 we're going to continue to see more cycles. This is 0:17:24.920 --> 0:17:28.679 gonna play itself out all over again. But every single 0:17:28.720 --> 0:17:32.439 time we hit a new level of of folks who 0:17:32.520 --> 0:17:35.080 are bought in, who have found utility, who have found value. 0:17:35.480 --> 0:17:37.920 And I'm I'm like I said, I'm I'm long term, 0:17:38.000 --> 0:17:40.480 still very very excited. There will continue to be volatility, 0:17:40.480 --> 0:17:42.879 but this is the exact time to be building if 0:17:42.920 --> 0:17:46.200 you're a long term believer in the tech. Everything's everything's 0:17:46.240 --> 0:17:48.320 on sale right now, and I think some great user 0:17:48.359 --> 0:17:50.080 experiences are going to get billed in the next few years. 0:17:51.760 --> 0:17:54.960 So last quick question to you, Alex Then, if Lawley 0:17:55.080 --> 0:17:57.840 is a gateway to this first wallet for UM so 0:17:57.880 --> 0:18:02.480 many new users, more women users, hopefully, how are you 0:18:02.520 --> 0:18:05.840 playing out a market downturn, a potential you know, you know, 0:18:06.040 --> 0:18:09.520 a lengthened crypto winter into Lolly's business. How long does 0:18:09.560 --> 0:18:12.680 this last? In your view? Yeah? So, you know, as 0:18:12.720 --> 0:18:16.200 Alexis was saying, you know, businesses that save people money 0:18:16.200 --> 0:18:19.760 do very well in recessionary times. Our last company, UM 0:18:20.240 --> 0:18:22.000 my co founder and I was last company was acquired 0:18:22.000 --> 0:18:25.240 by racket in formally ebates, which had its biggest growth 0:18:25.320 --> 0:18:28.520 years during the last recession. So if we think, you know, 0:18:28.520 --> 0:18:31.400 if we can follow that that same path, uh, save 0:18:31.440 --> 0:18:35.680 people more money and bring on more incredible merchants. UH, 0:18:36.040 --> 0:18:38.720 continue to build new technology. We're going to do very 0:18:38.720 --> 0:18:42.520 well through this recessionary time in the spare market. Um, 0:18:42.560 --> 0:18:45.880 because people are coming into bitcoin with Wally and getting 0:18:45.880 --> 0:18:47.760 it for free. They don't have to risk, you know, 0:18:47.800 --> 0:18:50.120 investing in it. They're just shopping as they normally would 0:18:50.119 --> 0:18:52.560 at their favorite merchants and getting it back. So it 0:18:52.640 --> 0:18:54.600 really is a risk free way of getting into crypto 0:18:54.640 --> 0:19:00.000 and continuing to dollar cost average in into bitcoin. All right, Well, 0:19:00.000 --> 0:19:03.119 will continue to track your product progress, Lolly, CEO Alex 0:19:03.160 --> 0:19:07.680 Adelman and seven seven six founder Alexis Ohanian, thank you both. 0:19:08.520 --> 0:19:11.639 From crypto winter to spring. Potentially, we'll see how long 0:19:11.680 --> 0:19:14.320 it takes. Okay, coming up, Apple card users get ready 0:19:14.359 --> 0:19:17.639 to start saving. Details on the company's expanded partnership with 0:19:17.640 --> 0:19:36.280 Goldman Sacks. Next, this is Bloomberg. Apple is taming up 0:19:36.280 --> 0:19:39.040 with Goldman Sacks to create a new high yield savings 0:19:39.040 --> 0:19:42.560 account for Apple credit card customers. The move building on 0:19:42.600 --> 0:19:45.480 the existing credit card partnership between these two companies. Joining 0:19:45.520 --> 0:19:48.520 us now with more Who else but Bloomberg's Mark German. 0:19:48.640 --> 0:19:51.840 So what exactly have Apple and Goldman announced? What's new here. 0:19:52.840 --> 0:19:54.640 So if you have the wallet up on your phone, 0:19:54.640 --> 0:19:57.640 which all iPhone users do, and you have the Apple Card, 0:19:57.680 --> 0:20:00.080 which is a collaboration on the credit card between an 0:20:00.040 --> 0:20:02.439 Apple and Golden Sacks, you will now be able to 0:20:02.480 --> 0:20:04.720 take your cash back rewards and put it into a 0:20:04.760 --> 0:20:07.399 new savings account built by Goldman in the wall of 0:20:07.480 --> 0:20:10.600 app so you can create or generate interest on those 0:20:10.600 --> 0:20:14.760 cash back rewards. Is Apple Card? Is this something that 0:20:14.800 --> 0:20:17.760 you think is going to be popular? I do. I 0:20:17.800 --> 0:20:20.280 think that this is going to be a entry level 0:20:20.400 --> 0:20:23.200 free savings account built into your phone for many people. 0:20:23.680 --> 0:20:25.159 I don't think people are gonna want to store a 0:20:25.200 --> 0:20:27.439 lot of money in this account, but the ability to 0:20:27.480 --> 0:20:30.520 generate interest based on your cash back savings that's between 0:20:30.640 --> 0:20:33.399 one and three percent. Sometimes they have six percent deals 0:20:33.400 --> 0:20:36.400 on some Apple products. I think it's going to be interesting. 0:20:36.760 --> 0:20:38.800 Apple hasn't said with the interest rate is going to 0:20:38.840 --> 0:20:42.000 be on this account yet. For comparison, Marcus, which is 0:20:42.040 --> 0:20:45.000 the consumer savings account HI Yield Savings account from Golden 0:20:45.119 --> 0:20:48.080 right now, is two point one a p y. I 0:20:48.080 --> 0:20:50.399 would imagine that Apples will be around there as well, 0:20:50.680 --> 0:20:53.280 So yes, I do think this is a major push 0:20:53.280 --> 0:20:56.639 from Apple, and it just shows how far they're willing 0:20:56.680 --> 0:21:00.600 to go in financial services so quickly. How does this 0:21:00.640 --> 0:21:04.960 fit into Apple's larger fintech strategy. Yes, so they have 0:21:05.080 --> 0:21:09.160 been rebuilding their entire technical infrastructure and this is a 0:21:09.200 --> 0:21:11.200 new piece of that. They have an Apple pay Leader 0:21:11.240 --> 0:21:14.080 service coming, They're working on another one with Golden Sacks 0:21:14.160 --> 0:21:17.480 for longer term, higher priced installments. So it all fits together. 0:21:17.560 --> 0:21:20.760 Apple wants to own payments and basically create the IE bank, 0:21:20.840 --> 0:21:24.920 and this is a key part of that. The I 0:21:25.080 --> 0:21:28.760 bank is coming, all right, Mark German, as always, thank 0:21:28.800 --> 0:21:40.399 you for bringing us your reporting. Appreciate it. Welcome back 0:21:40.400 --> 0:21:43.040 to Bloomberg Technology. I'm Emily Chang in San Francisco. While 0:21:43.119 --> 0:21:46.080 Tech made a roaring comeback on the latest CPI prey, 0:21:46.160 --> 0:21:49.600 one pocket of the market did get left behind. Bloomberg's 0:21:49.600 --> 0:21:52.000 id Ludlow here to tell us all about it. Yeah, 0:21:52.080 --> 0:21:55.240 e commerce and online retailers is really interesting. Amazon was 0:21:55.280 --> 0:21:58.680 one of only seventeen stocks that closed lower on Thursday. 0:21:58.720 --> 0:22:02.120 The rest with pretty much those high multiple preprofit software 0:22:02.160 --> 0:22:04.720 companies that we were talking about earlier in the show. 0:22:04.760 --> 0:22:06.560 And I guess it's this one to punch right. We're 0:22:06.560 --> 0:22:09.400 worried about inflation and how that's going to impact the consumer. 0:22:09.680 --> 0:22:12.119 At one point, looking at Etsy closed down nine percent. 0:22:12.359 --> 0:22:15.160 At one point was down twelve percent following the CPI print, 0:22:15.200 --> 0:22:18.800 It's biggest drop since June of this year. And also 0:22:18.840 --> 0:22:23.480 looking at i Buy Amplify e t F ticker I Buy, 0:22:23.800 --> 0:22:25.560 which is kind of a basket of not just e 0:22:25.680 --> 0:22:29.080 commerce stocks, but also gig economy stocks, at one point 0:22:29.280 --> 0:22:32.160 had a really deep three drop, but he actually clawed 0:22:32.160 --> 0:22:34.080 a lot of that back to close three tenths of 0:22:34.119 --> 0:22:37.440 percent lower. There's also the question about Prime Day two 0:22:37.480 --> 0:22:39.800