>> live from pier three in san francisco, welcome to quote bloomberg west." ahead, the fight over music royalties hits capitol hill today as the house judiciary subcommittee is holding a hearing on whether the 1941 consent decrees governing music royalties should be updated. songwriters and song publishers want an overhaul of the licensing rules because they don't account for streaming services like pandora. shares of ebay are plunging and shares of facebook are soaring after markets desk david marcus left a pal. he will head the facebook mobile

marketing efforts. nintendo announced a new game for the wi u in l.a.. these include super smash brothers and a collectible toy platform called amebo. they are trying to boost sales. forward for commercial drones -- first, legally approved commercial drones flight over land occurred earlier this week. the drum was made by a company ronment and was flown by bp over one of its oil fields in alaska. taxi drivers000 across europe will hold massive protests tomorrow against the uber.hailing app

of the happen in some biggest cities and in paris, they're planning on blocking the roads that lead to the airports. the european taxi industry says it's not fair that regulations they have to follow are not is expanding rapidly in europe. >> the kinds of things we think about at huber or are we continue growth and go to more cities? can we continue growing in the big cities where already in? we look at if we are growing faster this year than last year. if we can make it through this all year and grow faster when we are six times bigger this year, that's a big deal. team reallyot of my focused on those kind of things. but there is a lot of little things underneath to make that a reality. >> the protests are scheduled less than a week after uber raised another one point $2

billion of funding to had a valuation of $17 billion. olivia sterns is with us on the phone from london. what are you expecting in london tomorrow with these protests? >> they are expecting 10-12,000 taxi to show up to protest rate if they turn out in trafalgar square and the central market -- monument, this has the potential to create enormous gridlock and be a huge hassle for the city. there has been smaller protest before but this is a much more mass demonstration. edits -- it is taking place across europe. it is expected to be worse. it could bring the city to a standstill. happen, it gets to the heart of the issue of what's going on and european economies.

these are industries that are heavily regulated. seeing is the crisis taking place and you see how difficult it is to enact these reforms that are needed to take place for the european economy to become more competitive. nobody likes these disruptive new technologies to be in place but that's what the backlash is this the same kind against companies like aereo and air b&b. has runerstand uber into regulatory hurdles. lesson to what travis had to say about regulations and general. , citizens of the cities, are getting around the city much more easily. it's 40% cheaper than a taxi. how does a regulator or city official take that away from the population?

an expensive transportation that is high-quality, you should not have. it's very difficult. premise, we are in 130 cities and there is only one city ever that i have pulled back any service and that was vancouver. >> black cabs in london are no joke. they are pretty expensive. how do they stack up pricewise? >> to be honest, it's a lot cheaper with uber. office to the our east part of london to notting hill and that will cost me about 40 pounds in a black cap. by take uber it will probably cost me 22 pounds. it's significantly cheaper but in london, if you end up hailing a black cap, you will take those express lanes that are designated for them. if you're in a hurry, that's good news but cities like new

york, you cannot always pay for a taxi by credit card. that's another big example with uber. you can still use your smart phone with uber. such a fascinating company. it's a polarizing company and people have such strong opinions. this is a company that has raised money at a $17 billion valuation. i talked to uber drivers who lost their jobs and have a job others whouber and were taxi drivers before and could not make it and decided to switch instead. --this is an interesting this protest is interesting because it puts on its head the message from uber which is we are fighting the big bureaucracy and we are giving consumers what they want but this protest reminds us that taxi and limousine drivers are people, too. not all of them are employed by uber or raising their hands to switch jobs to be uber drivers

and many people are affected by these changes. has been ableber to rally consumers on their side, signing petitions and saying when he to bring uber to our city. you are right, it's very polarizing. >> uber has run into regulatory hurdles in the united states. they are still fighting battles in many cities. do you get the sense that the battles uber is fighting in europe are bigger than what they are fighting in the united states or can these be overcome? they are talking about is that this will be decided at national level or a municipal level on a city to city basis. thatood news for uber is the european commission vice president has said the ban the brussels court put on uber was hrazy and put a bad anti-tec

message out. there is support for disruptive new technologies. there is a clear recognition that this is a much better option for consumers. the resistance is much more local but it will be decided regionally, country to country, city to city. >> i know you be covering those protests for us. thank you both for being with me. the fight between pandora and companies that collect royalties for songwriters has spilled into the halls of congress and the justice department. phil mattingly is with us now. this has been an ongoing battle in the courts but now washington is getting involved. are changes on the way? we are talking about rules made decades ago. >> yes, it's almost crazy to think of it like that. in the near-term, i would say changes are probably not likely. unlike everything else in town, there is raw bipartisan agreement that the current system of copyright law puts about everyone at some kind of disadvantage. listen to what the house judiciary committee chairman

said. >> unfortunately, consumers who want to be able to easily access their favorite songs and a time on all of their digital devices face a legal framework written for the world of vinyl albums and eight track tapes. the most heated battles has pitted pandora against two organizations, broadcast music inc and the american society of composers, authors, and publishers. these groups provide a mechanism for legal protection and royalty collection for hundreds of thousands of songwriters and publishers. their contention is that pandora does not pay fair royalty rates in the current law does not take into account the rise of digital music. lawmakers are keenly aware of it. they are looking into it deeply and considering even a broad measure to put major changes on. a timeline at this point is not clear. shute justice department this debate up with its own decision to get involved. what might happen there?

>> if you are looking for action on this issue in the near-term, this is the place you should look instead of congress. believe it or not, these groups fighting with pandora are under consent decrees that have been in place and 9041. got how thes royalty rates are set and pandora has held the upper hand in court fights. the justice department last week announced they are going to review those very dated consent decrees. >> what about the streaming services? what is pandora said with all of this? what's interesting with all the players is that everybody has their own gripe. everybody looks at the minimum rational manner. the company will get a chance to testify and capitol hill on this issue later this month. they have been clear that they believe the consent the crease as they currently stand play an important role in how this works particularly in the way courts step in and rule a both sides

cannot reach an agreement. i think pandora rightnow feels like any major changes to the consent degree would be bad for business but it will be interesting to see. there is a time for the justice department we should find out by the end of august for everyone stands and if any major changes are coming into play. >> thank you so much. we will be right back with more of "bloomberg west." ♪

>> welcome back to "bloomberg west." massive datar that breach late lester has just named a new chief information security officer. ino from general motors. target has been shuttling executives around after reports that executives knew about this

but failed to take prompt action. david marcus is leaving for facebook where he will run the facebook messenger. he plans to leave the mobile payment company at the end of this month. what does this mean for facebook's future? this took a lot of us by surprise. were you surprised? a big talent move the does not involve an acquisition or start up. i think so. >> you look at someone who is three years into their gig. this is many times when you see start up executive sleeve is after three years. this is a step up down or sideways? paypal has 14,000 employees.

7000 but facebook messenger has more active monthly users than paypal has total active accounts. we don't usually think of facebook is being more or less but in this case, he's going to have a much bigger impact. >> let's talk about the numbers, 200 million monthly active losers -- users but is not stillg whatsapp and there is confusion about what the relationship between facebook and whatsapp will be once the acquisition is done. >> it's a big question but you look at this incredible canvas. if messenger becomes with facebook uses for payments, you could not imagine a better canvas than 200 million actively -- active users with a desire to send money back and forth. it's an interesting opportunity. the potential that he could end up working on a payment product which facebook has dabbled in but it never worked? paypal is quite different.

we are talking about the three hot things for facebook and the technology landscape. payments, mobile, messaging. for people to exchanging thatvia nmessage, that's huge and no one has tested yet. talked aboutus speaking with mark zuckerberg and being compelled. zuck had to pull out all the stops to get this type. is anyone in the world who can do this, it's mark zuckerberg. he focuses more on recruiting than any other ceo on the planet . the eve of their ipo, he's recruiting for hours the day before. >> where was that? >> he was recruiting executives the day of the i po. when you think about the type of executive who can pull someone into this position, zuckerberg is the guy. >> where does that leave paypal?

it does not seem like there is a succession plan in place. there is a whole executive team reporting to john donahoe at ebay. if you are a paypal employee, you might wonder what it means for me but also incoming potential executives joining the company. it's a big time of uncertainty. >> is this standalone app strategy going to work for facebook? it has not worked before. they accidentally release an app yesterday called slingshot which seems like a snapchat competitor. i don't know, do you see this having likes? >> it's too early to tell but one thing it offers is the opportunity for german tatian. -- for experimentation. they can experiment in messenger prior to rolling it out in their entire suite. >> do you think they release

that by accident? >> i could not tell you. >> how do you release an app by accident? to medication, not just broadcasting generally to your friends, is something facebook will have to get. we are seeing snapchat really come up. >> david marcus was one of the first guest on "bloomberg west" when we started the show. what do you see as his trajectory? >he could have been the ceo of a company somewhere. as anould expect him entrepreneur at heart to start another company but like we said earlier, he has a huge opportunity with facebook. >> if you want to reinvent payments, there is no better positioned do it that a place like facebook. i think that was probably the opportunity. thank you both for being with

us. we will see what happens. electronice-3 entertainment expo is in full gear down and l.a. and we will review new games being showcased next and you can always watch us on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. ♪

>> welcome back to "bloomberg west." at&t is touting the benefits of its proposed purchase of direct tv for consumers. in a filing, at&t says it plans to expand hyperspeed broadband service to one million locations but it would not be possible without directv technology. agreed to buy&t directv but the dealer still pending. -- videoames begin

games, that is. all the big names from the gaming world are in l.a. for the gathering. let's bring in jon erlichman who's in l.a. and will be covering this event. what are the highlights? >> i think the business story this year is that software helps sell hardware. like the big felt players were unveiling their gaming consoles, the next generation devices. now comes the after we have seen these devices on the market, now comes the second wave of getting people excited about buying some of these gaming consoles and part of the way you do that is show them really cool games. are alreadye gamers owners of these various devices and games but if there is some excitement tied to specific danes, maybe that carries into the more casual gamer.

transitiony saw the from the last generation of consoles to this new generation. a lot of people were just as satisfied to play games but less fancy on their phones and tablets. >> what about the continued focus on franchise games like " halo." what is the game plan their? >> this is a great example -- talking a lot of kudos about the next-generation halo game but making previous versions of halo available through the xbox1, something they had not done before and they were very clear about saying that we are going to act knowledge the new gaming crowd this year. last year, microsoft was more focused on the entertainment power of the xbox as opposed to the games. >> what about virtual reality? isn't that all the rage? >> we will continue to watch the oculus story also with sony's

adjective morpheus. >> thank you. be sure to tune into our live coverage from e-3 tomorrow on "loberg west." from a couple of ceos. still ahead, the faa approved the first commercial drawn to fly over land. we will show you the drone that will survey the bp oilfield in northern alaska coming up. ♪ it's 20 six minutes after the hour and a means bloomberg television is "on the markets." --'s take a look at stocks there has not been much change today but a little bit of a % for the down about1/4 for the dow/10 jones. shares of zynga ours climbing the most.

investors will get more insight into zynga tomorrow when it holds its annual meeting. we will have more "on the markets" and about one hour. you get more "bloomberg west" next. ♪

>> you are watching the "bloomberg west." i am emily chang. ?hat is your favorite brand developable -- developer platform for google glass. daniel debow joins me now in the studio. what is your vision for sales force where? -- salesforce wear? >> we think wearables are

growing quickly. we will find all of these cases in businesses and enterprise. it is about helping companies connect to companies in new ways. wristbands.ied many the thought of getting work on my wrist stresses me out. you are imagining this as more of an enterprise application where you are using it in the operating room or a customer service representative can monitor calls remotely. new latu move towards a forum for technology, we invent new ways to use them. hoover could not have existed without -- uber could not have existed without mobile phones. experiences and casinos and resorts and shopping, different ways you will be able

to provide offers and customer journeys for consumers. i think that is part of the vision. you can imagine field service workers using google glass to get instruction or how to improve and fix a problem, how to go through check listing in warehousing and manufacturing, that is where visualization comes into place. situations where your hands need to be busy. be will see devices available. in terms of everyday usage, having a wrist device is not just putting a smartphone on your wrist. it is about the specific use cases that are small nudges. what is really important is context. ande devices are always on they have sensors. they're connected to products and places and the systems

around you. imagine i am running late for a meeting. i can glance down. it knows i am on my way. lots of productivity enhancements will come from developers using these to build apps. they are pretty simple interfaces. could all of this clutter it up and make it more difficult to use or less desirable? >> when you take lat forms and you build apps -- when you take platforms and build apps for them, some of them are not so great. foruild six reference apps six leading different wearable vices. we have open sourced them and given them away for free. to them andn it said go create. we have connected these devices directly to the platform. we want to see what they come up

for. i do not think it will clutter it up. people will find specific use cases that are really helpful, help people become more productive and help companies connect more with their customers. ,> you are working with samsung fit bit, what do they tell you they want? -- what sort of uses are they interested in. >> they want more applications built for these devices. in this particular case, they are excited about enterprise exploration. how can businesses use them? salesforce is the number one cloud computing company in the world. think saying you should about these because wearables are growing quickly. you will get a competitive advantage if you think about how you can connect to customers and make your employees more productive by using the platform to think about what you can do.

the companies we are thinking about are overjoyed. we are innovative. we see what is coming. anare you watching apple for iwatch? >> it is always exciting to see what they are going to do. that is good news. the more mainstream vendors come out with great products, the increase.ion will >> daniel debow, salesforce. thank you. illegally approved commercial drone flight has happened in alaska. approvedrst legally commercial drone flight has happened in alaska. we will be right back. ♪

>> welcome back to "bloomberg west." foxconn has big plans for robots. the chairman is calling robots the most exciting new part of foxconn's business. the potentialut today. >> in the home, automation is going to be the central of control for the family. if you go out and you forget whether you need to buy eggs, it will remind you that you are out of eggs and buy some. everyone is working on building and standardized thing -- standardizing these platforms. this is what we are trying to cooperate on with our clients.

>> foxconn is working closely with elon musk. they gave no details. the faa just gave the oil flyany bp the permission to the first drone over land. doing aerial surveys over alaska. it flew on sunday. ,hey surveyed bp pie lines roads, and equipment. , roads, andnes equipment. stephen, thank you for joining us. how did the survey go? >> it went to great. we have been working on this for white some time. we have been in this business for more than 25 years. we spent much of the last decade proving the technology out and continuing to advance it. real landmark moment

for this industry and a number of different industries locally. >> you brought a drone with you. talk to us a little bit about the potential for drone technology in your line of work. >> i brought with me the wasp. device has as much technology packed into it as a private plane does that is piloted by a person. all kinds of technology related to navigation, autonomous operations, they are all in this. this is designed to provide information. it is nothing less than the digitization of agriculture. it is turning bridges and pipelines and roads and crops into zeros and ones that can help people make better decisions. this is just the first step.

how quickly do you expect the faa to approve these flights? >> we hope to demonstrate success in alaska and there will be more confident in the technology and our ability to take it to a lot of different paces and benefit a lot of different industries. we hope it will move quickly. we are prepared for that. we have been working on it for some time. yourt's talk about confidence in the technology. how can you ensure there will not be any problems or accidents? our approach is to take a mission services business model. we take our operators, many who come from the military and have use the technology lee -- the technology extensively. our people are the ones operating the systems and delivering information to our customers.

we view safety as the highest priority. extensive training goes into the operation. operate withned to local air traffic control authorities to make sure everything happens in a safe and effective fashion. >> we are looking at a hummingbird is that a kind of drone? technology development project. we produced the hummingbird. it is the first aircraft of its time. six inch wingspan. it weighs less than a aa battery. it can fly in tiny spaces. if you can imagine a collapsed building, it is hard to get into narrow spaces. you can potentially fly the hummingbird drone into that. >> what about the potential for consumers to benefit from this technology? out -- more of a far eye

a far out pipe dream? we think there are an unlimited number of ways unmanned aircraft can benefit companies, government agencies, and individuals. we are at the beginning of that. sunday, we launched the movement with the first faa approved operation over land in alaska. we could see more of these devices helping protect the public and property, helping companies operate more effectively and helping consumers in ways that are important to them as well. marketdo you see the playing out between big technology companies and smaller drone focus companies, like your company? we think of ourselves as a technology company. we have been in business for over 40 years. we have seven vehicles in the

smithsonian. our project -- products make up -- percent of the unmanned aircraft. the market that is beginning to emerge is this martial market. we are approaching it with a mission services capability. we have us that list a new capability that delivers higher fidelity and higher survey data potential to transform i large number of industries. it is a wide open space. we are excited to be in a leading position. thank you so much for sharing your story with us. learning that google has agreed to by skybox imaging for $500 million in cash.

skybox satellites will help keep google maps accurate and up to date. they are hoping to use the technology to improve internet access and disaster relief efforts. what is the next big thing in live events? we're talking about consumer spending and how that is impacting growth next. ♪

>> welcome back to "bloomberg west." one hot topic is the evolution of the consumer and how people are using technology to spend their money. one trend in the event ticketing is a popular site. they're looking at how people are using technology to find others with similar interests to connect with.

>> the next big thing is creating a destination where you in anyand do anything location in any day. consumers want hyper relevancy. they want to live a better life and be fulfilled by life experiences. it is this interesting bragging , like a concert or a wonderful event like this in a beautiful setting. you have shied away from taking on ticketmaster and stub hub. are you changing your tune? our chin was never that. it is easy to outline and incumbency market by talking about an 800 pound gorilla. grand vision, it is a step along

the way. for us, what we found, internationally, the long scale gets longer. . it is an exciting opportunity and gets bigger. >> the window seems to be closing. a lot of companies are raising a lot of money. what are you thinking for eventbright. >> we want to become the destination site for consumers and that the mobile experience is really convenient for our consumers. when you look at being the world's market place, the market is huge. we want to ready match the opportunity with the .ime

>> what you think about the environment right now? is it eye-popping to you? do you understand it? >> we have never seen so much breath and innovation then now. all of thek about things we're doing with bitcoin and cars and transportation, there is a great runway. i do not -- i am so focused on event bright and i do not know who is overvalued or undervalued. they're all of these great opportunities to take advantage of the capital that is out there. >> what you think about the word bubble? >> we are building a business that will be here, bubble or no bubble. i'm focused on building a business that can stand on its own two feet and be independent.

i feel i should ask you, we had a provocative debate. it was about the state of any quality. -- have you have observed the protest against the google -- what is your position on what the problem is? >> i do not have a strong take on what the robb laments. i certainly know what the solution could be. it is giving young and upcoming startups who are building their businesses in the city an opportunity to give back and connect with the city. we talk about how we want to be part of the solution. i do not think it is as simple as going out and volunteering. there needs to be more conversation about how we can band together and make the city a great place for everyone. ideasould love to see the

that have been proven and work so that we can follow any path of people who have made a difference. >> you do work with the city already. >> we do. they go out and spend the time in various organizations. with volunteer at an elementary school. the tipping point is a huge partner of ours. we feel like we are getting more connected to the community. it is fragmented. how do we coordinate our efforts to make the greatest impact is really the question. >> do you think the tech community is being unfairly targeted? think we have the power to put our minds together to be part of the solution. andhe is the cofounder president of events bright. john has the bites nla.

1.2 million. that is the number of copies of sold kart eight that were in the first weekend late may. we are talking about gaming with the big e 3 conference nla. microsoft, with the xbox one and sony in the playstation 4. hasnintendo, the wii u struggled to stay part of the conversation. the abilityo have to help save nintendo? >> definitely. so many people love the characters that nintendo has made historic over the years. one of the things we have heard out of the three is nintendo taking a page out of the book of sky landers with having

collectible portions of mario and other characters that can be used to make more of the games interactive. that is the power of what they have gotten. earl --uched a bit on virtual reality, but what are you looking forward to most when it comes to virtual reality? because we have this controversy of facebook versus sony, both of them interested in virtual reality, given that a thatk in oculus are -- is more about communication. can they encourage game developers to come to their platform. at he3.erlichman will be

for watchingmuch this edition of bloomberg west. we will see you later. ♪

>> i am mark crumpton. this is "bottom line. today, gm ceo faces shareholders company hasaker their annual meeting. elizabeth warren talks about her student loan bill. we will look at safety and security and brazil during the world cup. to our viewers in the united states and those joining us around the world, welcome. we have full coverage of the stocks