emily: apple jumps into music streaming. will it be a spotify killer question mark we have everything you need to know from the apple developers conference. i'm emily chang and this is a special "bloomberg west" life from outside apple's developers conference in san francisco. tim cook rolls out new features and innovations, but will it be enough to drive iphone momentum? just over one month old, the

apple watch gets a makeover. and super sizing apple paid -- how the company is expanding its mobile pay reach. all of that ahead on "bloomberg west." first to the lead -- apple's streaming music services product -- is finally here. tim: that place is almost in a billion hands around the world already -- one single app on your iphone. emily: the founder of interscope records jimmy iv there perhaps the most magnetic performance of anything we saw today, unveiling apple music. this service gives access to the 30 million songs stored in the itunes library and a radio station broadcasting 24 hours a day. the subscription costs $9.99 and

you can sign up free for a free month trial. apple music has some big name actors including drake who introduced the service on stage but he did not perform. will customers buy in? here with us is brian white of cantor fitzgerald who covers apple and we have been thompson with me and they ceo of eight track dave parker, that caters toward millenial. a shot across the bow for companies like pandora and spot five. is internet radio really radio or just a playlist? dave: they have taken a similar approach to a track in that they are focused on duration. if you take a service like pandora, it is algorithmically driven.

the playlists themselves are not actually curated. what beats one is doing is curating a channel taking a cure from traditional radio and serious xm. -- serious xm. from every genre and culture in the world. emily: should spotify be worried? guest: of course because it is a default and default are our full. they had apple maps and any time something is default, it has a big advantage. brian: they are going to bring music streaming mainstream. they have eight hundred million itunes users, so i don't view it as a threat to the incumbents. it's a big secular trend and they are going to make it legit. emily: if you look at the

numbers and how much you can add to the bottom line, if they have 15 million subscribers, that's less than 1% of revenue. how big a deal is this for apple's business and product momentum? guest: i don't think it's a big deal and i think that came across in the presentation. we are doing music because we are music company and steve jobs loves music. the lack of focus is concerning and a big opportunity for the visit startups to do what they do best. guest: i think they are a major player in music and i think they can be a big player and it helps keep people in the ecosystem. financially, who cares. emily: why isn't apple going to be your lunch? guest: the market for on-demand

subscription is relatively small. 40% spend maybe $15 and year, so they are focused on that 10%. emily: does it make a difference you've got musicians behind it? guest: jimmy is a genius and the connection is compelling. you can get closer to individual artists. we don't play in that world. emily: is it too much question mark a global radio service and they are trying to be a social network for music -- i don't get it. guest: i share the same concerns. the labels have so much control over how much is consumed. they cannot do a free tier so that is where the radio service comes in.

using in general is a tough place to do anything but that is what apple is best that. emily: why won't one service when out and apple specifically? guest: i think apple can be a big player but i think there will be room for other players as well. you cater to a certain niche or a crowd going to list on a certain type of music. but bringing jimmy and here is huge. emily: he was the best presenter by far. guest: he can speak to the musicians. they trust him. years ago, they launched paying and it didn't take out but -- did not take off. guest: this is much more than a streaming music service, it's the entire platform. guest: we focus on trying to do

one thing really well. we are not trying to do everything under the sun. we do discovery and play listing. emily: i interviewed the founder of pandora and he said the same thing -- i'm going to take to my knitting. thank you for joining us. you guys will be sticking with me throughout the show. besides music streaming, and other highlight out of apple today, diversity on display. for the first time in five years, women were there during the keynote. we saw the president of apple pay who talked about global payments after tim cook acknowledged the lack of women in silicon valley and apple keynote was the cause of the entire tech immunity. it showed that men make up --

55% of its workers are white. but perhaps this picture is not -- the line in the men's room next to a nonexistent line for the ladies. next up, updates for the apple watch. should they have in there from the beginning? jack ma pounding the pavement in new york and chicago. how he plans to convince american business to team up with alibaba. ♪

emily: is very are watching -- jack ma visiting new york and chicago this week, pitching china's middle class as a growth opportunity. he will have dinner in manhattan with business leaders and we'll have lunch tomorrow at economic club of new york. the bloomberg west team will be in attendance and he will hold a town hall leader -- town hall meeting in chicago looking for business leaders outside of china. he says international revenue will at some point be 50% of alibaba's revenue. it was only six weeks ago when apple released this watch. today, the company announced an updated version of the operating system which allows for native apps. that's the egg news when it

comes to the watch. what does it mean for the future of wearables? you guys were mentioned in the keynote. what is difference -- what is different about this experience on the watch? guest: it is an activity tracker. you can compare your activities to one another and having it on your watch love you to record your activity and with the other dates, we have access to the heart rate monitor which allows athletes to train it different heart rate zones at know when they are exerting themselves. emily: there were interesting things about sending your heart rate to someone else -- would you do that once and never again? how big a step forward is what we saw with the watch today? guest: i think it is significant.

at its release, all the negative reviews were about performance and these apps. it feels like the original iphone when they had web apps as a solution for developers. actual apps are what changed the world and actual apps will change the experience. emily: all four of us are wearing our apple watches. do you feel like this is something you can't live without or is it nice to have? guest: i think it is nice to have as long as it doesn't connect to the internet. native apps cut the cord to the phone and if this were a standalone device, maybe it would. guest: it's definitely a device i'm willing to wear and happy to have, but can i live without it? i think it is not. guest: it's not overwhelming and

i think the changes make it much more punctual. native apps will be a big deal and a lot of the things that have already pop up in feedback will be addressed. emily: native apps will improve speed and efficiency but a lot of the things are in the future like using the watch as a remote control for your house. how far away is that? guest: something that involves lots of pieces will take time. that's the long-term vision and this is kind of my identity and that is super compelling but you need to get their first. i can look down and see the sports score which is something i'm particularly excited about. it gives it a reason to exist until it becomes your reason to exist which i think is a way

off. emily: what has been difficult about it? guest: it's a brand-new platform and we have to wait for it to mature. i think at the end of the day, it's the new model for interacting with information and that is the thing i think is innovative here. the platform will develop and more apps will happen and right now, it is early days. emily: now that the watch has been out there, what are they revisions that could come? guest: we have said that it will be the best-selling product in its history. we have 23 million in the first four months for apple watch and the apps are what is going to drive demand. people look at the watch and it is cool and there are functions -- emily: there are very few apps that actually work well on the watch.

what else do you want to see come to the watch? guest: i'm excited to have it connected where i don't need my phone at all. you can't overstate the difference in performance native apps are going to provide. it's a way better experience and that's going to be the case. emily: congratulations for the mention on stage. thank you for joining us. now to robot revolution -- a korean team of engineers is $2 million richer after winning a defense department challenge ran over -- for a robot that could operate in hazardous conditions. start the created -- darpa created it in the wake of the fukushima disaster after realizing robots may have helped mitigating the disaster. it involved never an obstacle

course and driving a car. the robot is called hugo and weighs 176 pounds. you can go from walking to wheeling around. coming up siri is working overtime. apple details how many requests siri is processing. plus check out this the is spacex just released remake go pro attached to a falcon nine rocket. it filmed it sent back to earth. ♪

emily: time now for the daily byte one number that tells a whole lot -- today's number is one billion, the number of requests apple says series of processes every week. if that's the case come and that means theory is fielding more than 99,000 requests a minute. everything from what is the weather like to tell me a joke. apple has announced that series will be more proactive, cutting word recognition errors and integrating reminders into your calendar. it's all an attempt to keep google now at bay.

here at the apple developers conference, we've heard announcements about apple pay, the new mobile payment system expanding to more than a million locations in order to make that happen. and it is rolling out in the united kingdom. here to talk about that is brian white and ben thompson. apple pay from your vantage point, how big a deal worthy enhancements to apple pay? guest: i'm really optimistic. i think the emphasis from payments really shows both of these companies looking at a world where advertising can be the main way of taking money. whoever controls payments is really going to have the leverage to succeed in the future and overt advertising is going to diminish. apple and google are both going to realize that is happening. apple is probably in a better position right now.

guest: i think what is impactful about it is when mobile first started it had a conversion rate comparable to the desktop. now are you just press the button, it is flipping everyone's expectations on their head. emily: apple pay has been out there for a while. do you see it adding to the bottom line? guest: i think it's modest and what gets me excited is it keeps them in the ecosystem. they will be moving into the u.k. and they changed passbook it is going to be called wallet. emily: it sounds a little like google wallet but we will leave that out. doesn't microsoft already do that? that is spotify -- you see

apple borrowing things from other companies and integrate them. guest: that is normal. i tend to believe if it is a good idea it's more discovered been created. it's like the iphone, once there is a rectangular touchscreen, they are all going to be like that. emily: we see a lot of enhancements to ios nine. how important is that in your own app development? guest: in the past couple of years, they have been more friendly towards developers and that activity apps in general. a lot of what they announced today will make a big difference in that activity. the ability to run to apps at once and go between them, the enhanced search capabilities are good the new stuff on the watch is going to be good. i think evernote and productivity is going to get a boost. emily: overall a refinement? guest: they focused on the user

experience today and increased security. emily: an interesting comment from the apple executive about hard data. it's all going to be on the device. is that genuine? how does apple use our data? guest: the big question is is it genuine because that's how they feel or google already has a lot more data and is better processing than they are? are they taking advantage of a tougher situation or do they think they can get a marketing edge by selling the past? guest: there's no evidence that consumers seem to care. guest: i think consumers are going to care a lot as wearable devices become more mainstream and intimate our tolerance for

where our data goes is going to be significantly more constrained. you can make a really wonderful experience by focusing on the product and experience and not focusing on being clever with data. it's a very genuine feeling on apple's part that they will make better products if they focus solely on making a product people want to pay for, not making a product that's trying to get your data to do something clever with it in the background. guest: the question is to what extent does that data make a better product? if it continues to extend its lead, apple is asking you to pay for an inferior product because they are going to trust your data better. guest: i don't think people expect free products, but they expect great products. as soon as free makes the product worse, which it does with advertising, people will happily go for the better product. guest: with an and edward

snowden, this is top of mind for me and my friends. emily: this is a debate you guys can continue to have after the show but we will have to leave it there. thanks to all of you. we will see how apple rolls things out over the next weeks and months and then are we going to see the tablet? guest: i think you are looking at an apple pro sometime next year, not this fall. emily: what was your number one? guest: the watch, the fact that it is software and you need to think of it as what it will be and we started to get a glimpse of that future. emily: thank you all for watching this special edition of "bloomberg west" outside the apple developers conference.

tomorrow, we have the ceo of rhapsody to break down all this is ecstatic. -- all this music staff. ♪

mark: john: i mark halperin. john:and i'm john heilemann. i hope you book your hostels in advance. ♪ happy national veterans day, mark. in our lineup tonight, the supreme court defying, but first, german dining. as the bare naked ladies might say, "what a week" until jeb bush announces he is running for president.