alisa: you're watching "bloomberg technology." let's start with a check of your first word news. after declaring tuesday to let obama care fail, president trump had a different message when he met with g.o.p. senators at the white house today. president trump: my pretty much day is really simple. we should stay here, not leave town and hammer this out to get it done. alisa: senate majority leader mitch mcconnell says the gop will move forward to debate the bill next week to repeal obamacare. he spoke after meeting with the presidentnd members of the g.o.p. caucus telling the reporters the bill in its current form will be open for amendment.

the nonpartisan congressional budget office will issue an estimate of the obama care reconciliation later today. nafta negotiations with scheduled to begin august 16. that is according to the u.s. trade representative. assisting u.s. trade reps for the western hemisphere, john will be chief master negotiate for the u.s. talks run through august 20. john mccain's says the arizona senator is recovering comfortably after surgery to remove a blood clot above his left eye. a statement released by a spokeswoman describes the 80-year-old as being in good spirits. global news 24 hours a day, powered by more than 2,700 journalists and analysts and more than 120 countries. i'm alisa parenti and this is bloomberg.

emily: i'm emily chang. this is "bloomberg technology." coming up, tension in the nation's capitol as formal talks reset the trade relationship between beijing and washington get off to a rocky start. why the world's biggest two economies cancelled their closing press conferences. and we talk about the sun certainly political environment. he will unveil the latest efforts to scale. and some of the top c.e.o.'s and emerging minds in tech hold court in aspen. our roster of interviews from the annual fortune brainstorm conference in colorado. first to our lead. chinese and u.s. government officials are meeting in washington for trade talks, but the gathering between the world's two biggest economies got off a tense start in the morning and the closing news krchtion was cancelled. earlier u.s. commerce secretary criticized china over the trade imbalance. >> china now accounts for nearly 50% of the u.s. goods trade deficit.

if they were just a natural product of free market forces, we could understand it, but it's not. and so it is time to rebalance our trade and investment relationship in a more fair, equitable and reciprocal manner. emily: bloomberg's international economics and policy correspondent michael mckee joins us from the treasury department in washington. so tell us what happened, how did the day end like this? michael: we don't know exactly how the day ended. we believe the talks are over by the treasury department isn't saying anything for right now. as you mentioned, the news conferences were cancelled shortly after the meetings began. we don't know to take that as a sign of progress or a lack of progress because there were the tense comments at the opening ceremony, but no indication that the talks would fail and we do believe they lasted until the middle of the afternoon.

the u.s. would like to see the trade deficit with china come down. they're focused on much of the old economy. they would like to see steel dealt in open capacity and the china would like to see u.s. tech companies sell them more stuff that the u.s. government prevents that. so they are trying to negotiate that as part of a deal. tech a big part of these talks, but we don't know where they went with them yet? emily: mike, i imagine the relationship with china is an incredibly elaborate dance. i wonder what your take is on the significance of the commerce secretary making such a bold statement. michael: well, he may be playing to the political base. donald trump came to office promising to slap big tariffs on china and to do away with the unfair trading practices that was costing u.s. jobs, but he hasn't done that. he slapped tariffs on nobody so far and he certainly backed off his rhetoric with china.

instead they're talking. the political base needs a message that they are going to be tough in these negotiations and that may be what it's all about, the chinas certainly know what the u.s. goal is. emily: so we certainly can't understate the importance of the trade relationship between the u.s. and china. what are next steps? michael: well, the goal here and we may still get an announcement to this effect was to continue these negotiations over the course of a year. when donald trump met in mayor i- mar-a-lago, they set up an action plan and some deals reached, previously negotiated by american beef and chinas chicken parts. those sorts of things going forward and they would like to expand and continue the talks and do some deal by deal-making. we don't know if they have reached that. we didn't expect any deal signing today. we did hope we would get some sort of announcement of where

they go next. the goal is to keep it going. emily: bloomberg's michael mckee in washington. mike, thanks so much for that update. well, all eyes in silicon valley are watching the latest in washington. take survey monkey, the provided is truly global available in 190 countries, 3 million survey responses worldwide a day. the company recently overhauled its user experience adding a bevy of new services in an effort to lure more paying business users to its platform. joining me to discuss is their c.e.o. great to have you back here on the show. so as we mentioned, a lot of uncertainty in washington and the economic environment. what kind of impact do you think this is actually having on tech? >> tech has a meaningful role as you look at the tech companies today in the stock market and the amount of financing the tech companies get. the businesses are becoming bigger and bigger and more relevant. with the travel ban the president proposed, that hittis pretty hard as we look at our ability to recruit talent from

around the world. our products are touching people all over the world including survey monkey as we mentioned. it is super important that we have a advice, adhere to our values and stand up to the people that we protect, our employee base and customers. emily: you have an interesting perspective. does that make you any or more less interested in all of these going on? >> we're most interested in how do we grow our business. we very much believe in profitable sustainable revenue growth. what happened this week, we launched our whole new survey monkey platform. we see that as an opportunity to take the voices of the consumers and the employees that you care about and turn that into actionable data. as you know, emily, we're all swimming in a sea of data. it plays out on social media. people talking about our products and our businesses. it's those executives who can ask the question why and then use that data to take the actions they need to make their businesses better and the that's where we have been playing for a long time. emily: you launched something called the people power data platform, around curiosity. explain this. >> it's the currency in business today.

our mission it to power the curious. you need to be serving the customers, employees, and shareholders you care about. really what our platform does, we have added all of the new features and functionality and solutions to help the executives turn those voices into actionable data. we have seen it play out in politics and businesses that people have different voices depending where you are, what gender you are, income and education level you're at. if you care, if you are asking the questions if you're curious, those are the people that are executing, growing and turning fortune 500 companies from start-ups in a quicker time frame from ever. you're caring the companies that aren't asking the questions, that aren't listening and being responsive to the market and they're failing faster than ever. emily: survey monkey doesn't need to go public, especially because of the profitability

factor. at the same time we're seeing snap and blue apron and the new tech i.p.o.s struggling in the public markets. does that give you any pause in terms of if or when to bring survey monkey to market? >> that's a good question. we have a profile that is positioning us to go public. we have an institutional shareholder base. i'm very much a steward of our employee capital, so we do need to deliver a return to our shareholders. we have been operating like a public company with debt holders and adhering to quarter conference calls with our debt holders. we are positioning to go public if and when the markets are ready for you. we look different than the companies that had sustainable losses. i'm really happy with the way our income statement looks. emily: so you guys did a really extensive survey about diversity in tech for the fortune brainstorm conference which i just returned from. one of the key findings was a major difference in the perception of the problems between men in tech and women in tech. women, 66% believe there is still a problem.

only 38% of men do. are we living in two different realities? >> so a applaud your efforts and those of jessica and rachel from the "new york times," katie bennett from the "new york times," the women who are covering and speaking to the issues. we are living in two different worlds and the voices that matter are the women who feel affected. so i think it is high time that we take a broader view of what's going on and company executives like me and others have a real responsibility to make sure that we are putting in place the kind of policies to not only provide a diverse and inclusive workforce, but also to provide for a comforting and belonging workforce once people get there. emily: now, we had a very spirited discussion and at one point, a gentleman in the audience stood up, longtime tech and he said at the beginning that he knew it was going to be a controversial point. he suggested that perhaps women need to support each other more. the c.e.o. of open table stood up and she was very emotional and had this to say in response. >> in silicon valley today,

there is a sisterhood of women who are supporting each other, telling each other about board opportunities, giving each other business ideas. there is a sisterhood. emily: we could have talked for hours, so many differing opinions and viewpoints about the state of the problem, what the problem even is. you guys actually broke down a lot of the numbers. what was the most interesting thing that you found? >> well, i think you highlighted it. it's exacerbated in technical that when you look at the percentage of women in leadership roles, the percentage of women onboard of directors and it's not just women. we have employee resource groups for african-americans, latinos, the lbgtq community at survey monkey. we think the groups that are underrepresented in leadership, it has a real impact, not only on the products you create and deliver, but how you market them. executives need to be working harder on recruiting, on the

employee policies, on the training and mentorship. we recently provided men 16 weeks in addition to women with parental leave. it's making sure that women have the support system at home and are not necessarily the ones who are deemed to be the one who has to plan for that early childhood. emily: you have added some new folks to your board. serena williams and ituit's brad smith. what do they bring to the table? >> tons. brad smith is one of the best c.e.o.s in america by all qualitative and quantitative accounts. he helped them migrate to the cloud and to mobile and made intuit one of the best places to work. serena williams, we're thrilled for her to be on our team. she is dominating her industry and sport for the past 20 years, arguably the best female athlete, the best athlete of all-time in our view. not only that, she is an incredible marketer. if you look at her social media following, the businesses she has launched, any commerce and especially the voice she has on key activist issues that are important to our employees and customers around gender pay

gaps. we'll thrilled to have somebody who is a competitor and winner and empathy. she is a real lightning bolt for our team. emily: thanks so much for that data, it meant a lot. thanks so much for joining us. >> take care. emily: we are watching t-mobile shares that are popping in extended afraiding. there was a second-quarter revenue of over $10 billion and a strong increase in new subscriber growth. the company raised its profit outlook for 2017, a move that suggests the promotions and price cutting tactics aren't hurting the bolt line. coming up, out with earnings and a steep profit decline amid its legal scuffle with apple. we will dive into the numbers. this is bloomberg. ♪

emily: qualcomm reporting third-quarter earnings with topped estimates and profit inline with consensus. however, the chipmaker forecasts a steep decline in fourth-quarter profit that underscored its depend den dense on apple. apple has stopped paying lipsing fees this corner. shares dropped in extended trading. it all down, bloomberg's caroline hyde. this is about lawsuits and legal struggles. talk to us about the numbers and what they look like given what is going on with apple. >> all eyes on the legal disputes with apple and its manufacturers and regulatory disputes that spain from the e.u. to the u.s. and asia as well. this hit not only the third quarter, but also its fourth-quarter forecasts. looking at these numbers, they seem to have shocked the market somewhat. analysts haven't found how much it will cost in the third quarter.

revenue would fall, and it did 111%. shares would fall, it did 28%. we are looking at a profit that could slump as much as 41%. we are looking at revenue that could fall as much as 13%. this has come as a surprise to the market. the analysts hadn't got their heads wrapped around this amount. it shows the dependence on apple which is refusing to pay the licensing fees with the manufacturers and another customer which they don't name which is also in a contract dispute. it's interesting, we're hearing from the c.e.o. in this statement really trying to say, look, we hold they say the high ground with regard to the dispute with apple. they believe they can win the legal cases. check out my chart. it looks as though they don't think that from an analyst and investor perspective. shares on the bloomberg, if you type it in, look how much

underperforming we have seen qualcomm going on the chart upon the bloomberg. we have lost about 13% of the market capitalization this year. it is the worst performing major stock in terms of chips out there in the u.s. meanwhile, look at apple up 30%. emily: stand by, we're getting in some new headlines about the congressional budget office saying the healthcare bill appealing the affordable healthcare act will reduce deficits by $473 billion by 2026. we'll bring you somebody from washington. i wanted to get you those numbers right away. caroline, back to qualcomm, facing stiff competition as all chipmakers. they're making a bid to buy n.x.p. what does that bring to the table in terms of diversifying the portfolio?

>> this is -- they said in a statement that they hope this deal will be closed by the end of this fiscal year. there are some concerns around that deal as well. while the e.u. in particular, the regulatory authorities here have been saying they want more information, in fact, they have been threatening to fine them if they don't get that information anytime soon. there was also some activist investors, elliott management, for example, saying we want more than money, more than $47 billion, please. all of this could be a little bit of a misstep. so far the company sound pretty bullish on the fact they get it in and be able to diversify crucial at a time when the likes of apple and samsung, two key customers are actually making chips themselves. emily: speaking of chipmakers, another chipmakering, a bellwether in the industry on your side of the pond, they make chip equipment, how did they do? >> they did well. they did well. the shares rose in the market

today and they did well because they're saying, look, we are seeing revenue expecting to climb by a quarter, by 25% by this year. they're really managing to push forward with particular deals. remember, these guys are selling big equipment, equipment the size of a bus, emily, that costs about 100 million euros if you're going for some of the most expensive equipment they make. they are selling to the likes of samsung, one of the biggest players, and at the moment they are managing to beat, so the profit came in 32%, revenue up 21% and also i.n.g. analysts like the way they're guiding into the third quarter and they're guiding for the full year. is does look like strength across the board, that's what the c.e.o. tells us. emily: caroline hyde in london for us. caroline, thank you so much. we're continuing to follow these headlines out of the congressional budget office. talking about just how much repealing obama care would cost, the house bill would impact improve the deficit, reduce the

deficit by $473 billion by 2026. we'll get more reaction from washington next. this is bloomberg. ♪

emily: a stock we are watching, shares of i.b.m. tumbling 4% in wednesday trading hitting a three-month low making it the worst performer on president dow, after second-quarter revenue missed estimates, failed at his technology services and platform services fell by just over 5%. monitoring some breaking news out of washington, the congressional budget office issued a statement estimating the obama care repeal reconciliation act saving the health bill would reduce deficits by $473 billion by 2020 and the number of uninsured would rise to 32 million people by 2026.

joining us from washington. kevin whitelaw, what do we know? kevin: this is an estimate of the straight repeal, the delayed straight repeal bill that at this point senate republicans say they plan on voting on next week. everything is very in flux after meeting with the white house. there is some talk of reviving the bill that mcconnell was working on before that would have resulted in an additional 22 million uninsured. this was a version of bill that was passed by both chambers and vetoed by president obama in 2015 that would appeal the individual mandate, a bunch of the obama care taxes. it keeps some regulations in place. if it is passed and then they don't manage to produce a replacement bill within two years when the thing actually would kick in, then you would see additional 32 million people uninsured. you would supremums double within a decade and you would save potentially 3/4 of the country without any options in the individual markets according to this estimate from the c.b.

o. emily: so, kevin, there are a lot of moving parts here. what are the next steps? kevin: right now we're expecting a number of the republican holdouts on sort of moving forward with the debate to meet with white house officials at capitol hill tonight including potentially the vice president, but definitely the health and human services secretary, tom price and a few other officials, they're going to be up there for a meeting to try to figure out what the path forward is. senators said that president trump made clear in a lunch meeting today with republican senators that he wants to see them vote on a repeal and replace bill if at all possible, but he would settle for a delayed repeal bill like the one of the c.b.o. just stored. emily: what does this mean for president trump and the level of confidence, of course, what happened last week, we know was a major blow to the trump agenda. kevin: at this point we don't really know -- we don't really know what is going to happen next week. what we do know is that right now, republicans don't appear to

have the votes to get anything yet on to the floor next week. if that vote were held right now, we think it would fail. it would get blocked and at that point, you no he, we would have to see what they decide to do. at some point, they might take the vote, have it fail and move on to something else. republican have a lot of interest moving on to the tax debate and they don't necessarily want to get held up debating taxes for weeks and weeks and weeks of additional time. at the same time they're facing incredible pressure to still deliver on their seven years of promises to repeal obama care. emily: kevin whitelaw in washington for us. kevin, thanks so much for that update. we'll bring you any headlines as we have them. coming up, making a big bet on vertical farming investing hundreds of millions of dollars. we will hear from the c.e.o. next. this is bloomberg. ♪

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>> it's 11:29 a.m. in hong kong and 12:29 p.m. in china. bhp plus and coming chairman is planning a series of closed-door meetings with shareholders around the world. ken mckenzie has already held talks in australia where he flagged changes the board has demanded dealing with critics, one of those critics urging the hp to be cautious on plans to enter the potash market. elliott says that could be a severe strategic misstep. the stakes onsed brexit, putting a figure on the so-called divorce bill the u.k. would be expected to pay to

leave the eu. the economy minister said london must hand over 100 million euros , the equivalent of 100 $15 billion, to walk away. that's the highest some so far mention and comes after the u.k. was accused of not meeting its obligations under the treaty. horace johnson will meet with business leaders and investors who employ thousands of workers. the british government is hoping to persuade them to stay in the country, despite the uncertainty of brexit. global news 24 hours a day powered by more than 2700 in morests and analysts than 120 countries. this is bloomberg. >> we have asia stocks extending gains for a ninth straight day, trading at the highest level 2007.december

we are seeing interesting moves particularly in the forex space. you have the yuan onshore and offshore rates extending losses. we do have the us a reversing gains, lower by .2%. ofting a two-year high $79.89, the drop fueling speculation they will need to tighten policy. we did have an announcement from the boj. pro to push back on the boj inflation target rate, and changed its 10-year bond yield target. the dxy, which has a 40% weighting from the euro, is headed toward a key fibonacci level here. this is the 61.8% retracing of the advance with the dollar

bottomed. the intellectual partner says the dollar bounce is largely driven by that euro and general uncertainty over politics in the united states as well as the fed policy outlook. ♪ emily: back to one of our top stories, qualcomm's ongoing legal battle over licensing fees. the latest, they are hitting back at qualcomm saying the chipmaker is asking for accepted payments. if successful, the counterclaims could cost billions of dollars in refunded fees and damages. qualcomm has offered new patent infringement suits against apple. but this time, in germany. tech litigation with bloomberg intelligence. both sides debating their case. what does this mean?

>> case continues to expand and reflects the licensing discussion and kind of behind closed doors, parallel these legal disputes aren't going well. both sides continue to add pressure by throwing additional legal claims, filing new lawsuits. a pretty strict court for enforcing patents. trying to gain some leverage. emily: can that happen? emily: the first is that the proceedings are very fast, eight to 12 months. they are typically 2.5 years. the second is german courts automatically issue an injunction if somebody wins a patent case. when you win an injunction issues, they import from germany. emily: the ceo of qualcomm says they are hoping they will settle. >> they are seemingly contradictory but they actually

all meshed together. i think they want to reach a deal. qualcomm has said as early as today on the earnings call that they look forward to continuing a supply relationship with apple. these are businesses that work together. they want to reach a deal and clear this overhang. it is a fundamental dispute over licensing practices, how royalties are calculated, the chips that going to apple and the handset devices. emily: in the meantime, they are suing manufacturers. what is going on? >> the interesting thing is that the iphone is made by a series of companies that pay qualcomm directly. they entered in the bad deal.

the qualcomm royalties, qualcomm sued them. that is a dispute between apple and qualcomm. it looks like it will potentially be consolidated litigation between apple and all common. iphone makers are on the side but not necessarily directly involved. emily: how do you expect this to play out? >> i think it will resolve by direct licensing agreement. they will need to negotiate some type of deal. royalty rates are going down. at the same time, apple is asking for a lot in its legal case. qualcomm will likely see some kind of reduction. and at the same time, this will resolve hopefully soon. the end of the year is always

popular. there is a bit more clarity in the legal claims. emily: thanks for breaking it down. the vision fund lent 100 $14 million investment in a startup that specializes in developing software having technology for robots. the startup is based in san diego. different types of commercial and consumer robots. the chairman and ceo said that it is developing truly groundbreaking technology. it is not the only investment announcement, they're also making a $200 million bet on indoor farms. it is leading the latest investment. we spoke in an exclusive interview from softbank about softbank in the future of farming.

>> what we're looking to do is build out a global farm network. we are launching the global farm network to be able to solve for getting people the best food that's available. and to do that all over the planet, make it available everywhere, for everyone, and everyone's budget. that is the process we are looking to kick off with this investment. emily: that is a pretty big goal, you want a vertical farm outside of every metropolitan city around the globe. what is your plan to scale and get their? this is something many indoor farms have tried to do but have not exceeded -- succeeded in. >> what we have worked for years to do, to get to the point where we can fit this into everyone's budget. now that there's -- they have accomplished it, they can scale. we have maxed out the ability to meet demand on the planet. it is outstripping supply for a number of years. we are growing plenty of

calories on this planet but not necessarily enough nutrients. >> why is plenty able to get those prices down so low? we see to produce coming out of these farms is very expensive. >> walmart has been so successful because they work to fit things and everyone's budget. and we have been doing the same. we get food to people know matter where they choose to get their food. if they choose to get their food at whole foods or walmart, we get great food to everyone. >> so now amazon ceo jeff results, his capital fund has invested in plenty.

what do you make of the acquisition of full foods by amazon? and how does that play into this? >> if you look at all companies, every team of people around the world that is working to sell fresh produce and fresh food through online distribution channels, it is very difficult to do. one of the things that makes it extreme we difficult to do is the fact that people already know by a fresh produce in the store after it has spent thousands of miles on trucks and a distribution centers, it is a pretty risky gambit.

the fact that people -- they spend thousands of miles on tracks. what we don't know is that if we will throw away the strawberries tomorrow or a week from now. will we enjoy them like the ones we got a year ago, or will we find them pretty bland and unenjoyable like the ones we got last week? we don't know what going to happen when we can actually see -- if it is someone we don't know. so people are not inclined, really, to spend their dollars on something that has a high risk of being thrown away in the next couple days. anyone, amazon included, needs credibility in fresh produce because fresh produce is what drives people to the grocery store. >> what is plenty path distribution plan for the rest of this year -- what is plenty's distributional plan for the rest of this year? >> simply, yes.

we plan to get food to as many people around the planet as possible. some of the leading retailers in the world, we have been talking to and working with them to get our amazing produce in their stores. emily: plenty ceo matt barner. out of washington, thousands of automated vehicles have been approved to hit the road while federal regulators approved safety standards. a house panel unanimously approved the legislation, the first step for setting the rules for the self driving industry. the energy and commerce committee could vote on the bill as soon as next week. coming up, the highs and lows in cryptocurrencies weaving into what is driving the volatility. we will talk to peter smith. this is bloomberg. ♪

emily: cryptocurrencies are keeping investors on their toes. a major shift in bitcoin over the last few weeks. last month, the digital currency exchange saw the value plunge from $317 to nearly zero. i caught up with peter smith at the fortune brainstorm tech conference in aspen, colorado. i started by asking about the crash, and when cryptocurrencies will stabilize. >> this is because corn-based exchange had to improperly -- had improperly implemented out the rhythms. with what you do -- >> it has had outages and performance issues. it is not limited to that one situation.

>> our platform has not gone down. i think in general, what will happen is, we see more and more scaling and more established players come to the system. it will transfer market pressure on the people to perform at a high level. emily: how liquid is the cryptocurrencies market? >> it is incredibly liquid. most of the trading occurs on over-the-counter markets. and i think on the exchange side, it's a pretty big balance, too. emily: do you think the market cap will surpass bitcoin in short order? >> it depends on the definition of short. emily: i believe he said by the end of the year. >> it is unlikely. emily: why? >> they couldn't hold that level. they got to a pretty big position and it pulled way back. i think that if he or he them could, in the long-term, surpass

bitcoins market cap. -- etherium could, in the long-term, surpass bitcoin's market cap. when you are taking a lot of risk, there's a lot of upside on that risk. i think bitcoin is pretty stable. it's a pretty safe place in the digital currency ecosystem. emily: we have seen a lot of initial coin offerings. do we need so many cryptocurrencies? >> ipo's and tokens will be a huge market sunday. the market today is mostly scams. there are a lot of securities laws being violated by the ico. emily: in which cases? >> i believe that to the professionals. on a consumer protection front, what the industry is doing for consumers, it is something to keep a close eye on?

emily: any you are excited about? >> etherium. i'm excited about what folks are doing at the academic research institutions. the focus at imperial college, cornell is doing great work. as far as the tokens themselves, the ico's, i am very careful not to take a personal view on those. 4 what is the biggest -- emily: what is the biggest obstacle for cryptocurrencies hitting the masses? >> when sites go down, it makes everybody look less than professional. the key thing is invest ahead of time so that when we go to these growth periods, we don't have the infrastructure come crashing down on us. emily: you think it is possible to build a sustainable infrastructure? >> for sure. emily: when does it hit the mainstream? >> i think it already has. there is a long way to go to

make it more useful. how do we make it fundamentally useful? i think -- emily: i can use bitcoin and play at the grocery store? >> in japan, i think most grocery stores except bitcoin. -- accept bitcoin. it's a recent development. it is light, people are expecting something to happen in a year. it is probably more like 10 years. it will take a lot longer than people think. emily: blog chain -- block chain cofounder and ceo peter smith. the network that bright you madman and breaking bad, how he -- how amc is competing with the likes of netflix and amazon. this is bloomberg. ♪

emily: amazon wants you to keep spending. so much so, it it launched a new feature inspired by the lexus instagram and the use of shop a bull photos. amazon users are able to post stories, ideas, and images of popular products. the goal is to have inspiration translate to purchases with the click of a button. it is only available on the company's mobile app. it is a network that brings you "the walking dead" and "better call saul." madmen premiered years ago. i sat down with the amc president at the brainstorm tech conference in aspen, colorado. i asked how the company competes with streaming services like netflix and amazon. >> we compete for talent. it is at the core of our business. it is, without question, where we try to pay the most attention. frankly, the greatest talent is a finite supply and we all go for it. when they came to us with

"breaking bad," and here we are with " better call saul." robert kirkmans, those of the people that fuel our success. emily: can you spend as much as they can on a new show or pilot? >> we want to spend the right amount. we don't necessarily have to spend as much as them, but the walking dead is in the right place. "madmen" was transformational. emily: what is the programming budget? >> we don't release programming budgets. emily: netflix has billions. >> moore isn't necessarily better. we talk a lot about doing fewer better, serve the underserved passionate audience. a show like "preacher," the creative risk is -- we brought it here and nurture it together. it has a lot more to do with their talent.

emily: when it comes to cord cutting, how do you convince tv operators to take on a smaller network? >> a lot of it is understanding the unique passionate core audience. what amc networks have globally done, we're not 25 channels saying to carry us, we are five businesses with target audiences. the sundance film festival was born out of robert redford's vision. that is a unique audience. the answer is, provide value. emily: what you see as the future of skinny bundles and how it changes the industry? >> to the consumer, skinny bundle doesn't mean a lot at all. we want to make sure the fan has what we want when we want it.

it is another way to distribute where they are going to be. what is great about transitioning the business, we are great at disrupting from the inside out. not based on skinny bundles or competitors, but a stump the desire to serve the fan and know the fan better. emily: would you ever go direct to consumer? >> we just launched a commercial free version of amc that is an option for people within the ecosystem. we can offer more choices. we know our fan better than ever before. just give me an opportunity to do what i want. we have been on apple and electronic sellthrough for years the day after commercial free. and now we have that. emily: how is it going so far? >> great. the soft launch has been a momentum creator in those things together i feel very good about.

emily: how do you find your next big hit? how do you figure out what is going to strike at the heart of what people want to watch? >> this is not my quote, but nobody knows anything. if everybody knew, they would just make hits. to take the odds and put them in your favor, that on talent and give them a place to take creative risks and nurture those risks. we've had as good a track record as anyone and i think we will continue to do so. emily: my conversation with amc president charlie collier. that does it for this edition of bloomberg technology. we will continue our coverage of tech earnings with microsoft and paypal on cap. -- on tap. check us out on bloomberg tech tv. that is all for now. this is bloomberg. ♪ qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq

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