emily: i am emily chang. this is the best of bloomberg technology where we bring you the best in the week of technology. coming up, disney plans to roll out its own streaming service. the c.e.o. joins us to talk about the way forward for the house of mouse. a male engineer from google is manifest went viral. the fallout from in 10-page rant that hit reset on hill i son valley's diversity problem.

and lending club could be shaking off its losing streak. the c.e.o. joins us to discuss the online borrowers' improving fortunes and a near record earnings report in a bloomberg exclusive. first, disney announcing that it will stop selling movies to netflix and begin offering espn sports programming and some of its most popular family films directly to consumers via two new streaming services. the need for disney to act was underscored by the fiscal third quarter results, also announced this week. sales and profit fell due to weak innocents company's big cable tv division, especially espn. subscribers and ad sales shrank. bloomberg's david westin sat down with c.e.o. bob i'ller and discussed the stream willing plans, plus the outlook for the company as a whole. >> we're seeing a shift in the way that people are consuming media. it is becoming more app-based.

a lot of app-based consumption is done with direct to consumer ervices. you need the technology to do this as well, and that is no easy task. it is not simple. especially when it comes to streaming live sports, we have consumption at a large level, and it is done all at once. so, we have accelerated our purchase of controls that we can move into this space at a faster pace and a faster rate than we initially anticipated, because we see the opportunity in the marketplace. the brands, the marketplace, and the consumer trends. >> you really do focus on the consumer-to-consumer experience. more specifically, who was the target audience for these ervices?

>> you are looking at the sports fan on the support side and with usb and as well. espn is one of the most popular sports programming out there. you look at 100 top-rated tv shows in the united states last year, 94 were live sports. espn obviously provides a lot of live sports programming. this service will provide an additional 10,000 additional live sporting events in its first year of operation. o, we are looking to provide and reach the passionate sports fan that wants to watch on mobile devices, you described as over the top direct consumer services, with really high quality user interface. essentially that's what we're providing. on the disney side, we've got a global fan base, passionate, great affinity for the disney and pixar products. it's families. it's parents. it's kids. it's kids and certainly

grandparents. we reach basically everyone, and it's worldwide. it's not just in the united states. the great thirst for disney-branded products today, and we're going to serve that fan well. >> live sports has always been a mainstay although it back to broadcast television. certainly, everyone knows of it through cable. because of that, cable providers have been very reliant upon espn. what do you expect the reaction to be from cable istributors? >> we will continue to distribute the espn linear channels. the distributors and programmers alike have been experiencing the disruption that the home market is seeing and multiple businesses are seeing from advancements in technology and changes to consumer behavior because of that. we feel we need to react accordingly.

my guess is distributors will look at this probably more as a threat than anything else. it's not intended to be that. what we're doing is reacting to marketplace conditions, and we're taking advantage of the quality of our brand, the passion and product that we create and the technology that enables us to reach consumers directly. if you look at disney's businesses, separate from the theme park business, virtually all of our businesses touch the consumers through third-party distributors. that's everything from big box retailers to owners of merchant picture theaters, and i could go on and on. this is an opportunity for us to reach the consumer directly, and that is an important step for the company in terms of growth. >> when a ceo like you makes an important decision like this, you have to ask yourself if you are going to build it or buy it. did you go through a similar decision process? why did you decide to build it ather than buy it?

>> well, in some ways, it is a buy as well. we are buying the technology platforms to allows to get into the space as it is faster than if we would have built it. we have the financial wherewithal to do a number of hings, but this seemed to be the best that for the walt disney company and our shareholders in terms of creating a growth strategy and really growing the company long-term. to do a long-term view which is very important, but also addressing the near-term issues we are seeing which is all about the disruption created by igital technology. >> in the espn app, you have some major sports in here. however, i do not see the nfl at this point or the nba. are there plans to add them at his point?

at what terms do you expect to get them in? >> we do expect the license this at to the other sports which have not already licensed. this creates an opportunity for us to monetize in more effective ways through subscription revenue as well as advertising revenue and all the way that a direct to consumer relationship can generate. i think we can expect that this product is going to be in the marketplace and licensed more aggressively from multiple sports organizations. possibly including the nfl and nba where we have great relationships. >> you say that you are planning a significant investment in movies and short-term content for the disney app. are we talking about an

investment we have seen from other companies like hbo or netflix recently? >> i cannot really comment on what amazon has been investing in, but netflix has been investing billions of dollars of original don't, and they've done so very effectively. you mentioned hbo. maybe this is a little bit more akin to that. we're going to basically produce, we're already developing, original movies and original television series specifically for this disney-branded service. it will be very similar to the investments we have been making in television and movies in the past. emily: that was david westin speaking with disney's ceo bob iger. alibaba and marriott are teaming up to tap into a chinese tourism boom. two companies are teaming up to feature marriott hotels on alibaba's travel site. marriott has 6,000 hotels, including the ritz carlton chain. china is now the world's

largest source of outbound travelers who spent over $100 billion in 2016 sparking changes over the global tourism industry. coming up, a talk about a former google employee's memo against diversity. this is bloomberg. ♪

>> google has fired the engineer who wrote a controversial memo about diversity in the tech industry. emily chang spoke with the auther of that memo about diversity in silicon valley. > it is hard to regret it, because i do believe it. i'm trying to make google and the world, in general, a better place.

by not confining us to our ideological echo chambers, where only one side of the story can be heard, and it's totally intolerant to other viewpoints and even scientific evidence. emily: what scientific evidence are you talking about? in follow-up to your piece there has been plenty of discussion about this. the fact that there is no research to support this idea hat there are biological causes for the lack of women in tech or leadership positions. i spoke with megan smith who works at google. she was the former c.t.o. for the united states, and she said that this is a myth. >> among psychologists there is a consensus that testosterone does affect a lot of ersonality traits.

in particular, our interest in people versus things. i am not saying that all men are one way and all women are another, but there is a distribution of these personality traits, and that distribution differs between men and women. there are many capable women in google, and i'm not try to say that any of them are not worse than average male engineers at oogle. i was just trying to address why we do not have equal or presentation from the population. emily: we have a very impassioned response to this. it said, if the memo was about black people or latinos or the lgbt community, you would not have anyone defending you. how do you respond to that? >> i think that is a false nalogy, and she is trying to

rope me in with racists and bigots, and i am not. i'm want a sexist and i'm not a racist. that seems to be trying to smear my image rather than looking at the evidence. very little of the responses have been actually looking at the science. they have just been calling me names. or nitpick of the formatting being a little wrong, or the original leaked document that someone else leaked didn't have any citations, when my original document did. emily: you're arguing for ideological inclusionment don't you think that extends to women and minorities and all kinds of people? google is making products for the world. don't you need to have all kinds of people making those products? >> i support diversity and nclusion, and i think also

that our lack of ideological diversity has hurt our products. it makes us think, for example, just the start that all conservatives are stupid. that is widely held within our left-leaning circles. >> that was the former google employee speaking with only chang. the google c.e.o. has also issued a statement. he said our job is to build great products to make a different in our users' lives. the ideas that a group of our colleagues have traits that make them less by leslie suited for that work is offensive and ot ok. is this a rare occurrence? what do you think the writer wanted to achieve by this? > the panel meeting is a weekly google meeting that

typically takes place on fridays, but it will now be oved to thursday and it will be a hotly debated meeting. many are interested about what the ceo has to say about this. he cut his break away short so that he could spend time on this. the questions that they will want to address at the meeting, and it seems that they are very interested in -- how can we make sure that google is a place that is comfortable for everyone? that it is a place where employees can express their views without being fired which is a concern that that former employee brought up in his memo. >> you think there might be some way to ease the concerns that were even brought up at

the shareholder meeting earlier in this year where shareholders felt that perhaps conservatives are not welcome at google? >> if you talk with people who are supporters of that former google employee, there is this idea that there is a sort of silent minority of conservatives which really do not feel safe speaking of about their political points of view which is because they are not commonly held at google. ilicon valley companies tend to lean to the left, and that as had an effect in how they ave dealt with issues like suppression of content. it extends a little further than just one engineer and his time at google. >> a tech giant is making its debut in the corporate bond

market. this comes as elon musk is making plans for a more affordable electric car. the auto company is planning to support new bonds to support the spending on its new electric car. the sale will bolster its balance sheet. they went through $1.2 billion in cash in the second quarter. coming up, on the hunt for more deals. we will discuss what is next for the fund. highlights from our exclusive interview with the finance minister. what he is promising a big change, and what that could mean for tech giants doing business in that country. this is bloomberg. ♪

emily: japanese tech giant softbank reported earnings this week.

it is good news for softbank's chairman who is on the hunt for more deals and investments. the billionaire is in the process of creating $100 billion division fund to speed up investments in technology broad. he says he is mulling over various deal offers including from sprint and t-mobile. bob o'donnell joins us to explore the options. >> i think that is exactly what we are seeing in do. he has talked about this for years. ironically, i worked for a company he bought 25 years ago he first started this vision of building up media. watching him over the years and seeing this vision evolved, he is driving himself to be sort of the tech giant version of a warren buffett. he is creating this conglomerate of all these component companies which he sees as being critically

important to driving this vision into the future. i do think it is a smart plan. not all of the investment are going to work come up i think he is putting them in the places. emily: cory, warren buffett of asia. what you think of that? >> i mean, come on. this is taking on enormous amounts of debt with tremendous isks on that debt. if you watched the way the ceos traded in sprint over the years, he would see that it has rought them to the edge of bankruptcy over and over again. these are big swings at the fences. anything but low valuations, he has a lot of debt to do with. he is using some connections to make these deals happen.

hit of the image in the trump tower, visiting president-elect trump, talking about jobs he's going to create with this investment fund that he's already announced, that president-elect trump didn't hear about before, but wanted to give him credit for. at the same time, he is still thinking about that t-mobile merger that the obama administration had said was not good for u.s. consumers. he felt that his personal appeal to donald trump might get that deal through, and now we are still talking about this. emily: bob, there is some discussion if he could co-opt these deals. it is very ambitious. >> to be clear, i'm not saying he is a warren buffett, but that his goal is to be a warren buffett. his approach is not on value. his approach is building and buying these core components. arm is the semiconductor rp company that has this incredible amount of inputs that most people do not recognize.

he is buying telecom, robotics, a lot of core technologies which he thinks can be driven forward. i think he is being smart in developing a vision. he has what he calls his 300 year plan which is a bit overkill, but even having a 25 or 30 year plan is a big deal these days. i think he is making bets based on those decisions. emily: how do you see a t-mobile merger playing out? >> well, there is this notion of 5g and what that sort of means. how the landscape of more than half the u.s. mobilephone market is basically between two companies with virtually the same market share at&t and verizon. now, when it comes to 5g, things could be very different in terms of who has the spectrum and who does not. maybe there is a chance to sort of rewrite the market share pie hart in the world of 5g.

i think it's also worth noting, the comments of this week, which is to say, he wants to be number one and is not satisfied being number three. by the way, look at number four, not too far behind. i think, as u.s. consumers, we think about it in terms of how the government is looking at this. what he wants is to be number one. he does not want u.s. consumers to necessarily have the best choices. he does not necessarily want u.s. businesses to have the most options for providers of wireless services, that go far beyond making calls and getting data. so we have to think about what it means, what the business change will be if we have fewer competitors in the u.s. providing a wireless service in a world of 5g when so many technology businesses will be based on the availability of 5g. with fewer competitors, we know prices will be higher. so what does that mean for businesses and consumers going forward, and is the trump

administration going to care about that? emily: bob, this would not just be another big tech deal, but it could impact directly hundred of millions of customers. >> yes, it could. you will need to get all of those leases together. the charter peace as well as the t-mobile and sprint pieces in order to be competitive against the other two. so, there is that question of if he can really pull it off. i think with the previous administration, there was that mental pressure early on. however, cory raises some good points. or are going to be challenges to the consumer. and other governmental entities may still step on this to say no, this is too big to make it happen. emily: cory, we heard talk about that division fund still being raised. what do you think of that? >> we are going to start to see perhaps how they recognize those from an accounting

basis. if you look at the history of sprint, you will see a couple of bets which have paid off fantastically in the venture category. hether it was alibaba in china or yahoo! japan, there were such great returns from those investments. you can see what he has some stars in his eyes and that he wants to pull that off again. whether was managing other investors or money from sprint to sell. emily: that was bloomberg's cory johnson and bob o'donnell. coming up, an interview with lending club's c.e.o. on the company's latest earnings report, how the lender was able to turn the corner after the surprise ousting of its former c.e.o. all episodes of bloomberg technology are live streaming on twitter. this is bloomberg.

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♪ emily: welcome back to the "best of bloomberg technology." i'm emily chang. shares of lending club surged the most in two years this week. this came after the san francisco-based company posted its second highest quarterly revenue in history, seeing that revenue spike 35% year-over-year to $139 million. the improved figures come about one year after the former ceo was ousted after the board found problems with lending practices and his lack of disclosure surrounding personal investment. the ceo scott sanborn joined us for an exclusive tv interview to discuss the future of the company. scott: it has really been about

investing in the business and putting in the right controls and putting investors back in the platform. a critical piece of that is the banks and we announced in q2, 40% of our money came from banks to fund the loans on the platform. emily: when it comes to the scandal, do you feel like the company is back in a good place? you?completely behind scott: i think with the results we delivered this quarter and what we talked about having our , investors back on the platform, are clear signs that we are looking ahead. emily: your main competition is credit card companies. no small opponent to take on. where are you gaining ground? at whato, if you look is happening with the broader market right now, there is over a trillion dollars in outstanding credit card debt.

over half of americans have had debt in the last 12 months. if you have not paid off your credit card and you have alone loan it is probably not a good , one. we make it easy for them to save on average 24% on interest versus that product. that is the core audience we're going after. emily: there is also the suggestion that lending standards could be getting looser -- where do you think we are in the cycle? $100 trillion in outstanding credit card balances is as much as it was before the financial crisis. scott: it is actually higher. it is higher. one of the powerful things about our model is that we make all of the performance on our loans publicly available so investors can see every loan we have ever issued over credit attributes for that loan. alsoit looks like, but what is the payment history? , what we are seeing, we did see deterioration in credit performance about 18 months ago. we talked about it and took swift action. what we see right now is

stabilization in performance and our loss rates and our forecasted returns for investors remain in line. emily: when you think we will see things turn? will we see things turn? is obviouslyt pretty hard to predict. what you are hearing now is in certain markets, the auto market is starting to see signs of deterioration as is credit card. but on the flip side you are seeing a lot of things to like in the macro environment for consumers, unemployment is low, inflation is low, oil prices are low. household formation is up. so these things are counterbalancing. the thing to watch, is consumers ability to service the debt they have accumulated. right now, over all debt has moved away from mortgage and is moving into student, auto, credit card. that is the thing to watch. emily: what risks are you being loanant of as you grow origination? scott: it is critically

important to be good stewards of performance. they are aided by the data we generate and we are the largest provider of personal loans. we have been doing this for 10 years. last quarter we had over 100 institutional investors. the signs are looking for are the consumers that appeared to be accumulating debt and not doing what they intended which is to pay down or pay down or pay off the debt they took on. emily: your board includes john max, a former morgan stanley ceo people that have , weathered the financial crisis. what are they telling you about risk? scott: so, it is an exceptional board appeared they have been incredibly useful to guide the company and set the course forward. right now, they are looking to the company to help illustrate what the risks are in terms of the market and make sure we are executing pertinently and deliberately.

it is important to note our , execution in q2 is about product experience and marketing experience. it is not related to credit. launched your first securitization this quarter -- how big was the funding? scott: the loans contributed were loans that have taught historically. in terms of the overall funding mix, it remains a small percent but what it does do is introduce us to a whole group of investors -- we had over 20 new investors who participated. that was great to see. it showed a lot of demand for the lending climate. ♪ emily: that was lending club's ceo, scott sanborn. in the meantime, continuing global expansion centering on southeast asia, the world's largest provider of shared workspaces says it will invest $500 million in the region and will acquire a singapore-based startup. this comes on the heels of the announcement to expand to china,

japan, and another location in seattle. bob o'donnell joined us to break down the deal. >> the acquisition of it is the first time they have acquired another type of co-working space. the previous acquisitions have been for related services. so what the acquisition, which likely was not very large, they are getting a local team and people with local expertise. the startup is based in singapore. the company says they wanted to do this acquisition for the talent and local expertise. they have been expanding incredibly rapidly. they're taking this approach where they are finding people who are already there and have expertise and finding investors together so they can rapidly , scale in the region. >> i interviewed the head of spacemob last year. before the acquisition happened. take a listen to what he had to say. >> lines are blurring, even

-- corporate'sns looking at co-opting as well. this is a way for them to be flexible and learning how to be nimble like small companies. we are helping small to become big and remain nimble at the same time. emily: $20 billion here. >> it is impressive they have gotten this far and there are a lot of concerns people have once they have started to actually do this. what you find, for example, is that they are very noisy environments. it is hard to get work done. so when i looked at trends of where people expect to be working, those wework type of situations were growing but then stalling. those were concerns. the other big concern is, this has traditionally been a u.s.

business, or tech focused kind of attraction. in other words, you find a lot of u.s. based tech companies working in these environments. whether that can transfer culturally and in other industries remains to be seen. emily: right tech startups are , not the only kind of new businesses out there. selena how is wework addressing , concerns? >> they have a high valuation and they need to live up to it. with thoseed to work with capital. softbank in japan. in china. a lot of concerns are that this is a cyclical business. when tech startups are doing well they will have a lot of , business. they also made changes in their strategy to incorporate larger businesses -- like microsoft that want extra flexible working , space. they are trying to diversify their revenue stream globally and with their existing co-working strategy. emily: uber is said to plan on unloading its subprime car leasing program.

according to people familiar with the matter exchange , leasing, a wholly-owned subsidiary, is unsustainable and should be sold or consolidated into a smaller unit within uber. the 40,000 car fleet has an estimated loss of $9,000 per vehicle. the board decided to wind down the program last month after cost was revealed to be much higher than thought. coming up, facebook is bolstering efforts in combating hate speech. we dive into the tech giant's latest move, next. netflix makes its first ever acquisition. we talk about why the streaming service sought out a comic book publisher. this is bloomberg. ♪

♪ emily: facebook isemily:

doubling down on efforts to combat hate speech. they're adding 500 content control staff in germany. this comes amid pressure in the country to crack down on offensive posts. with the parliament recently passing legislation threatening fines of up to $59 million. that fine would be levied on large social networks that fails to report hate speech. or to remove illegal postings. i catch up with caroline hyde from london, and asked what was behind the uptick in staff. caroline: we heard as recently as may and june that we would see a beefing up across the world of content control that would be working on behalf of facebook. they said they would be expanding it by about 3000 new content control staff. to beef it up. notably most of these people , tend to work in outsourcing companies. this is what will be happening in germany. 500 being added in the west of germany.

they have already got 700 and in the capital berlin, working , for a different outsourcing company. it is notable, germany has the hatred for hate speech. they have been very tough legislatively. this is all after the very sad backlash that arose after the immigration crisis that occurred in 2015, 2016, and you saw it a lot of neo-nazi sympathizers taking to social networks like who spoke to put anti-immigration views across. this is why there is focused to tackle this in germany. also the key election about to happen in september. emily: what do you make of how facebook is handling this issue now? >> i think they are trying to do the right thing. if there are 2 billion people on the platform, a good percentage are saying things periodically that are not very sociable, it

is possibly going to take more than that. that is why they are focusing on artificial intelligence as a way of surfacing the conversation s and comments that these people ought to look at. focusing on germany is actually very smart for them. it is the country of all on the planet that is most sensitive to this issue. maybe china for other reasons. and so i think they will learn things there that they need to learn. >> caroline, are other countries going to be doing the same thing or will we be seeing this elsewhere? caroline: we have heard in the united kingdom and in france, talk of bringing in legislation themselves, fines, themselves. this came after the terrible attack in manchester and london and the atrocities in paris. we saw france and the u.k. announced that they would be doing an anti-terror campaign that was announced in june. much of it was focused on social networks, on facebook.

in fact sheryl sandberg came to , the u.k. and spoke to the home secretary here a couple months ago, and indeed she had just been in silicon valley talking to the social networks and how they could crack down. we have seen threats of legislation in the u.k. and in france, but really germany has led the charge. emily: david, social networks, facebook, google, they have thousands of workers around the world not just dealing with hateful content but offensive content, inappropriate content. >> suicide risk. emily: they've been criticized for outsourcing this kind of work, some of the hardest work to other countries where employees don't have the same protections -- what do you make of that? david: i've never been a big critic of outsourcing. jobs are jobs and people if they are capable should be allowed to do work. i think the one question in this instance is does facebook have , sufficient control and guidance capabilities over the people who technically work for

outsourcing companies, but i suspect they probably do. those people in many cases are talented and well trained. it is really hard work. it is the kind of work that, honestly, it a lot of americans don't want to do. it involves looking at things over and over again, looking at pornographic photos, looking at awful things. they talk about the need to give these people psychological counseling to do the work. so i do not criticize them for using outsourcing firms. i criticize -- i criticize them for maybe not having enough people and making fast enough action but i think they are trying they just need to try , harder and they know it. emily: caroline, what do we know about the resources these employees are given and what sort of counseling or psychological help that they are also receiving? caroline: concrete evidence is few and far between emily and i , but what is interesting i went back to the post that announced this hiring in germany and three times they mentioned the need for necessary support.

they clearly realize there is this concern about when people , are staring into the abyss of human depravity, what support can you give to these people from a psychological point of view? so they have spelled out time and again that they will be giving them counseling available, plenty of training available. but as you say, these people are eventually hired by contractors. how much control will they actually have? the contractors are based in germany and they will be working closely in a network, but it is hard to know exactly what sort of a support system these people will have? emily: david, 30 seconds. david: this shows how serious the problem is. in germany, in the german language they will now have 1200 of their 7500 people. think of all the other languages happening around the world. if they were to have a proportionate number of people working on this problem in every language, it would probably be hundreds of thousands. emily: caroline hyde and david kirkpatrick there.

also out of europe, tech giants have taken advantage of tax loopholes in the region. grabbingcost and market share from local competitors. speaking exclusively with the finance minister of france talking about proposing new rules that could have big implications for the tech industry. y based on strategis the same rules for everyone. when you are doing business in france or europe you have to pay taxes. you cannot take the benefits of doing business in france or europe without paying taxes that other companies, french or european, are paying in europe or in france. the same rules for all of the companies in for all states. >> does that mean that you want to lower the corporate tax to

25% everywhere in the eurozone? >> we would lower the corporate tax from 33% to 25%, in 2022. and then the second step, we want to have tax harmonization among members of the eurozone. you have 19 members of the currency,you have one the euro, and you have 90 levels of taxes. and you have 19 different economic policies. we cannot go this way anymore. that is why we are advocating for tax harmonization. the first step of that on the european level would be a tax harmonization between france and germany. that no quite convinced later than 2018, we should be able with the germany to have a common corporate tax which should be the basis for harmonization of all corporate

taxes at the level of the 19 member states of the eurozone. >> what concessions do you expect from the germans to further this european integration and in exchange would you accept a german as the head of the ecb for example? >> be a little bit patient. we are in 2017 and the decision must be taken in 2019. so it means we still have time before deciding who will be the next chair of the ecb. but we should not wait before taking decisions as far as integration of the eurozone is concerned. i would think that we should be able at the end of 2017 to make the first step towards more integration within the eurozone. ♪ emily: that was the french economy and finance minister in an exclusive interview with caroline connan.

coming up, a move 20 years in the making, why netflix decided a comic book publisher was the right fit for its first acquisition. and if you like bloomberg news, check us out on the radio. you can listen on the radio app, bloomberg.com, and sirius xm. this is bloomberg. ♪

♪ emily: david letterman is making a return. teaming up with netflix for a series that will feature interviews and field segments. there will be six hour-long episodes which will premiere next year. letterman spent 33 three years as a talkshow host. netflix has made its first acquisition. the company announcing it snapped up "millerworld." the acquisition is the latest decision to bolster its own content.

this comes as other companies become wary of dividing content to streaming services. as popularity with netflix looms. we discussed the next move of netflix with bob o'donnell. >> a big part of it coming off segment is because disney, time warner, you have the pipelines of comic book materials from which they can use. and right now, all of the tv shows and movies that netflix offers on their service are from disney. they are tv shows that marvel owns and produces, movies that netflix licenses after. netflix wants its own pipeline of original comic book material that it can develop and own and exploit down the road if it wants to make t-shirts or lunchboxes or themepark rides. emily: what is your take bob? is it a smart deal?

: i think it is. you mentioned netflix as a media company. that is different than netflix as a streaming company. for them to become a media company they have to buy and create original content. if you want to create stickiness in your service, that is the kind of move you have to make. we see this with amazon doing that for their prime video service netflix is doing this, i , expect we will see more of this. i expect this is a challenge for a company like apple who has talked about doing it, because it is not clear whether commitment there is. emily: it is not clear with their commitment. i spoke with tim cook about that. he said it was very experimental. what do you think this means, lucas, for other big media players and unconventional players like a tech giant like apple? >> the traditional guys, disney, fox, time warner, viacom, they are intrigued by this. they are not quite sure what to

make of it. there were some people i spoke with today who asked me to explain it today. netflix has never bought anything before. as you said, this seems like an outlier. it does not necessarily mean that will be out there buying a bunch of libraries but it opens the door to that possibility. and it reinforces that netflix wants to be ready for a world where no one is going to license them a lot. we have seen these companies retrench and revise their strategy because they felt like they were giving some of their most valuable ip the way to let netflix build its service. as for the new players, we report on companies like apple and facebook and google but we have really reached a point where in terms of media creation and production and ownership development, netflix and amazon are on another plane from those companies. they are making as much tv is the biggest media companies out there. they are streaming over the world. apple and facebook are still dipping their toes. emily: hulu just had its first hit, "the handmaid's tale."

does the fact that amazon and netflix are so far ahead mean that nobody else stands a chance? bob: the content creation business is tough. there are decades of history about how difficult it is to make that successful. it is a hard skill to acquire. clearly you are seeing a lot of efforts, the tech industry marrying up with hollywood and bali would -- bollywood, other places trying to come up with original content. the notion of all of the content being given to netflix, licensed to netflix to use, that may go away. so they have to be prepared if they want to survive as a media company long-term. and we have to start thinking of them like that. emily: lucas shaw and bob o'donnell there. that does it for this edition of the "best of bloomberg technology." we will bring you all the latest in tech throughout the week. tune in each day. all episodes of bloomberg are now live streaming on twitter.

check us out at bloomberg tech tv on weekdays. that is all for now. this is bloomberg. ♪ ♪

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♪ david: you are now both former presidents. mr. clinton: nobody plays a song when you walk into a room anymore. [laughter] mr. bush: i did not bring the coffee. david: what do you say to each other? mr. bush: generally, when does this program start and when is it going to end? [laughter] mr. clinton: he'll say to me give shorter answers. david: what was the biggest surprise the first day you are in the oval office? mr. clinton: it really surprised me how easily i could be turned into a two-dimensional cartoon. mr. bush: in walks my dad, i said, "welcome, mr. president." and he said, "thank you, mr. president." >> would you fix your tie, please? david: people wouldn't recognize me if my tie was fixed. i will leave it this way. alright. ♪