>> i'm emily chang. this is a special bloomberg west. coming up google with spherical cameras. plus virtual reality takes us into the heart of combat zones around the globe. and the new droid from the

upcoming "star wars" film. first a look at the markets. wall street seeing a sharp sell off today adding to significant decline for the week of around 3% across the board. one of the week's biggest losers is netflix. i want to get straight to matt miller in new york. it is like a bad movie. first it seems like things are coming back around and then it all goes back down again. matt: exactly. we lost 500 points on monday and it looked like we were going to gain it back by the middle of wednesday. however, that turned around and now we're down for the week about 560, 550 points. so pretty rough on the s&p as well. a drop of 3.4% for the week. and netflix has just gotten absolutely crushed. i mean, it's not fair to say the stock has been completely destroyed since year to date it's still up more than double.

but it is in, officially in bear market territory, since it's come down from its august 6 highs more than 20%. a lot of the problem is competition here. i mean, so much talk has been about apple and apple making its own content and that could mean it takes a bite out of netflix' lunch. but you also see ali baba getting involved in the same kind of service. you see hulu offering different services like commercial free television services for $12 a month. so competition coming from every area. and then analysts started to pile on. we had some analysts say it's time to short the stock. it has had a fantastic run so far. as a result, it just was down, down, down every day for six or seven days in a row. emily: also, matt, we're seeing netflix doubling down on its original content strategy spending more not less. they ended their contract with epics. you won't see movies like "the hunger games" on netflix anymore but they'll be spending more on

making this original content with people like brad pitt. i certainly don't have a problem with that. but obviously investors may. what do you think happens monday or tuesday? when the markets reopen? matt: to be fair "the hunger games" is pretty awful content but very popular content. so all the kids want to see that. brad pitt is like older than either one of us. so maybe that's not the right way for them to go. monday is still a holiday in the u.s. there won't be any trading in netflix on monday but the interesting thing for the markets at large is over this past year when we've had a chinese holiday markets have rallied into those holidays because we're happy to not have the stress of dealing with the chinese market. when china comes back online as far as trading, we have historically fallen here in u.s. markets. so maybe we could see a little bit of a bummer on tuesday depending on what goes on in china.

emily? emily: all right. we'll be watching over the holiday and on tuesday. matt miller in new york, thanks so much. have a good long weekend. now, to a story that we are watching, google is said to be prepping a version of its google play app store for china according to a report by the information. the internet giant is expecting to have approval from the chinese government as early as this fall. additionally, the report details google's efforts to finalize a version of the android operating system for wearables in china but, more importantly, this could be, prove to be the beginning of a new chapter in the company's relationship with china after it publicly feudd with the government back in 2010 and then basically left mainland china. today is not only friday but force friday in anticipation of the release of "star wars." we got a chance to take a look at the hottest droid in the "star wars" franchise. our bloomberg editor at large spoke to the maker of the bb8 toy.

>> bb8 is from the new "star wars" movie "the force awake eps." we were working on our version. it's a robotic ball that rolls around. essentially, bob, a mentor to the company actually saw this thing and said maybe there is something you can help me with. he showed us stills from the set and said, could you bring this bb8 to life? >> what is he doing right now? >> he is in what we call a static mode. though it is static he is aware of his surroundings. you control it with your iphone. right now we've got a program to kind of emulate what i just described. so look around. where am i? all about conveying personality. he can go on patrols and missions around your house. he -- >> there is no camera. it's all just software that we created a program to emulate what that would be like.

we like to think this is as close to an actual droid that you can buy. if you hold this up and kind of click there and you aim the little circle on him you should see a reality video. do you see that? imagine sending messages like that. all of a sudden you're using the robot as a form of content distribution that isn't really being done right now. our challenges and adventures to create something that felt exactly like it was real. emily: joining me now in the studio adam wilson cofounder of sphero. thank you so much for joining us. before we go any further i want to tell everyone that this episode is being shot live with go pros. our floor director jen is wearing a go-pro on her chest to catch all the action. no pressure, adam. just a few extra cameras on you. adam: i love it. emily: you got good news. this just came out last night.

sales are going great. adam: sales are incredible. we did the big force friday opening at disney store in san francisco. they opened at 12:01 and there was a line around the block and we asked everybody what they're looking for and a lot of people said the bb-8 droid you're making. the sphero bb-8 droid. right now it sold out on both disney.com, our website, most of the in stores that opened already. we know that apple will be getting their shipment of this for the apple stores on the 10th so when they reset for whatever they announce on the 9th they will also have bb-8 droids. emily: how did you come up with the idea of a robotic sphere? adam: we came up with that about amb years ago. we wanted to make something indestructible, super cool robot, something you may never have seen before. we wanted to change the way people see robots. we see them as these utilitarian things that just do something for you. we want one that's fun, your

friend, something different. emily: tell me about bob eiger. what kind of input has he given you? how did he get involved? adam: last year we did the tech stars accelerator program for startups like ours. we met with bob eiger, a 15-minute meeting with him. it was a match made in heaven. he really soaked into what we were doing. he saw we were trying to embrace robotics in a different way and entertainment type of way and so after that he was like i want to become your full-time mentor. emily: take a moment to show us how it works here. adam: sure. emily: tell me about the processing of developing the bb-8. adam: this has been a crazy process. making a hardware product in 10 months to be on the shelves is really challenging especially one that goes through this much work and approval just because, you know, we really wanted to focus in like this is the droid. if you watch the movie you'll know this one is very realistic. i just have it controlled through bluetooth low energy on my smartphone so i can drive it around and it can kind of look at us, he can drive around, patrol on his own and do all the messages we saw before. what is really cool is he is also a real robot. you can program this and kids can learn to program on this. emily: financially what does it

mean to be part of the "star wars" franchise? adam: financially once we started we knew we were going to make this bb-8 droid it became very obvious that we're going to need a little more investment to make this product. we have to buy everything up ahead of time. so just financially we got a $45 million investment right before making this just so we could build enough of these. emily: you're going to make a lot of money on this. adam: we've already out sold and out done anything we could have imagined. emily: we'll be watching. i am excited to play around with it a little bit later. thank you so much. adam: thank you. emily: may the force be with you. adam: you too. emily: coming up we'll show you how virtual reality is being used in journalism to translate viewers straight to the story. google revamps its street app. now you can be a contributor. we'll be talking about all of these hot new action cameras. emily: we have breaking news. yahoo's chief accounting officer

emily: we have breaking news. yahoo's chief accounting officer is leaving the company next week. he'll be replaced by ken goldman currently c.f.o. and ken will serve as the company's principal accounting officer. we'll have more on this story as it develops. a lot of executives shake-ups at yahoo since marisa meyer took over. a new way to see the world, google has revamped its street view app giving users a chance to upload your own material and help google fill in the blanks stitching together a digital picture of the world. google wants to expand beyond roads adding wilderness areas,

building interiors to the platform. we sat down with the google director to ask where virtual reality fits into the bigger picture of google's products and services. >> to make imagery front and center. make it delightful to browse from one place and discover new things. we hope that by making this delightful we will encourage more contribution and sharing of imagery. if you look at just roads, we have only a fraction of that but we don't care just about roads but places, interiors, parks, wilderness. we want to let people experience the world's beauty everywhere. we can't do it ourselves. it is impossible. we need people who are passionate about places to help. we want to encourage kind of a system of cameras.

we make it easy on them. we have published an api for talking to these cameras. we have also a few years ago published a spec for metadata and images to explain when they are panoramic and we find that some users already are capturing very high frame rates. we think over time this will develop. i think one of the pillars is world travel. i think with streetview we are -- we are ahead of the game. we can make it friendly. already we have some content and we are interested in getting more. emily: now, that was all shot

with a sata-s and i want to take a closer look at that right now. this is a third generation by the way. this model has significant improvements. joining me now rico imaging america's president jim malcolm the company behind this camera. you've got all the products with you, the new cameras, the third generation of the camera. records full video all for $349. how does it work? >> let me give you the quick, easiest way to do it. basically we've ballot camera with two lenses. each looks in an opposite direction. with that we can see a full spherical world. everything above and below you. i have the camera on now. we can look around and see easily how we can pan around. when i'm ready to take a picture i just push the button and it takes the picture. it stitches inside the camera and transfers it over. emily: how do you make the camera truly spherical? >> you have to be able to see behind yourself so in our case we use two lenses.

each uses 190 degrees. that allows us to stitch them together in the camera in order to make one world that is completely 360 degrees. emily: how big is this market today? >> spherical market is in infancy. the camera technology has come a long way and the ability to do this is simply magical but the software on the back end to support it still needs some work. the biggest announcement recently was what happened with youtube and they added a 360-degree channel to their network. emily: now one interesting thing we were playing around with the camera, our editor was working with the video in the system and it really sort of dismantles the way you think about video today because there are no angles and the video sort of flattens out. when you put it in the system it sort of loses the spherical, the special feel. i wonder how big a barrier that is. >> you know, it's like i said, we're in our infancy right now. the still adges, we link 30

together. today people don't walk up to their tv and touch the tv to interact with it. right? so as a developer of the hardware we have an open a.p.i., software developer's kit, to actually create the back end as well. we're looking for the industry to make it so you can interact either wirelessly with some device, hand gestures going forward, or what i'm doing on this screen is using my computer to manipulate a still image. i can do exactly the same thing with video because we simply take 30 still images together and make one second of video. emily: how long was this in development? >> we've been in the market about two years with the theta product itself. about three years in total to get to where we are today. emily: all right. jim malcolm of ricoh imaging, we're going to talk a little more about the broader camera market and you're going to stick around. i want to bring in another company getting into the 360 video space. joining me is peter addington. the 360 fly action camera will

be available online this month and rolling out across best buy in october. what is interesting, peter, is that you guys, this camera has been in development for a decade. tell me about that. peter: i obviously joined the company recently. the focus of 360 fly is really to start to move people away from looking at video cameras in one dimension and start capturing the rest that they're missing. our focus is to make sure that we innovate in 360 space. we innovate in this area. action kams are starting to explode. i think a lot of people are missing a lot of the content. i think that what we're trying to do is enable them to do that. i think we are in our infancy when it comes to 360 video but for those of you, always a big point of view camera, once i found this product and experienced it and the ability to be able to catch everything around me, to not miss 90% of the action i think is really compelling. emily: you're looking at a live demo of the 360 fly camera right now. your camera only has one lens.

i want to talk a little about the technology of it. it does have a blind spot. how do you still get that officerical look with just one lens? >> i mean, the software these guys developed obviously our founders came out of the robotics lab. they've been working on this for a long, long time. it is very difficult to do, not something that is very simple. i think the challenges these guys have come over, i'm a big single camera, single lens guy. i think that's the future of where we're going. i think the spherical stitching images together and doing that process is something that works probably better for stills but not so much for video. we're very much around video, very much around action. we've got obviously two hours of record time. when you think about that, that's two hours of record time with almost like six go-pros running so you're grabbing a bunch more content. the part that makes us a little bit different is we're all about shooting and sharing and swiping in a matter of minutes.

we've focused heavily on the smartphone. we've focused heavily on the ability to be able to edit on the smartphone. so our whole concept is it's good to capture it. i think that's really important. everyone talks about the capturing and quality of capturing. i think the most important if not more important is how do you share that amongst your friends? that's where we spend a tremendous amount of our time. emily: interesting you say that peter because when we were using your app we had a little trouble taking it out of the and getting it on to our system to edit it. hang on. we'll continue this conversation after the break with 360 fly c.e.o. peter adderton and ricoh's jim malcolm talking about camera technology. you are staying with me. this week we've been focusing on emerging leaders in virtual and augmented reality. today we end our series with a company that's using virtual reality cameras to transform journalism and transport viewers directly to the story. >> virtual reality has this

ability to take people to see everything around them. so in cases of natural disasters like our film that we made in nepal, people can be standing in the streets of kathmandu, have rubble all around them, and experience the scale and scope of devastation as never before. recently when we shot in syria we were able to bring people right to the streets of aleppo to see for themselves the crisis first hand. right now when we're shooting in v.r. we use a lot of different cameras. sometimes we use the go pros that are just stuck together on a 3-d printed case. but the essential camera just looks like a ball with a lot of little cameras around it. post production you have to stitch all those different cameras together to get one image. currently we're using virtual reality to tell stories across the globe.

we're shooting stories on climate change at the glaciers. we're shooting in uganda, congo, haiti. we're about to start shooting in iraq right now. all of these stories are opportunities to really transport people. have them have a full experience of what they could never have a chance to see. if we can get people to hear a story about what's happening in syria right now or see the devastation in nepal and the ongoing effort to rebuild, that's how we change the world. >> you can check out all of our virtual reality stories on bloomberg.com. we'll be right back with our special camera tech special after this break. ♪

emily: welcome back to a special camera tech edition of "bloomberg west." i'm back with jim malcolm of

ricoh imaging, 360 fly peter adderton in los angeles angie vani, another cam -- and giovanni another camera manufacturer. the action camera market is really dominated by go pro. you have sony trying to keep a foot in the market. jim, i'll start with you. where do you see the action camera market going? and differentiating yourself? >> the biggest part of it is moving from a single point of view to an immersive world. if you look in one direction which is our current p.o.b. cameras do you only get to see part of the action. when you go into 360 you can pan everywhere within the image and see everything. you can be in the party itself and enjoy the last day at the cabana. emily: how about you? >> for us the action camera business has been a great business. we are number two but for us with our new wearable cameras and the like, the social broadcasting, there is a huge

opportunity with that. we're looking forward to truly enjoying that part of the business as well. emily: how about you, peter? how do you differentiate from the giant which is go pro? >> well, i mean, you got to have a look at where go pro was five or six years ago. they came into the market and it decided to explode and i think social networking created the experience for go pro to share your content. users went out and grabbed the content and had the ability to share it. obviously innovation in the camera market hasn't been there. that is something we're working on and we're pioneering but i think the most important thing and i keep stressing this is the way that users actually use their cameras and i keep coming back to the focus. if it is okay to create the technology what is more important is how does the user use that cop tent and share that? emily: we have to leave it there. so much innovation in this space. 360 fly, ricoh, and ion camera thank you so much.

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john: i'm john heilemann, and with all due respect to the summer of 2015, sayonara. ♪ [laughter] all right. happy we are about to get out of town for the long weekend day, sports fans. our special "with all due respect" summer recap. trump, trump, and a whole bunch of candidates not named trump. therer, you know you and is no question that 2015 was the summer of the donald. but it was just a short time ago people were still saying rings