leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ >> i am alisa parenti and washington. you are watching "bloomberg technology." let's get a check of the first word news. after heavy snow created hazards throughout most of the eastern u.s. today, the region can expect to feel a win show up 20-30 degrees below zero in some areas by friday. nearly 4000 flights have been grounded so far. we have temporary closures at new york's jfk airport and let cord airports. the united states is suspending security assistance to pakistan. a state department spokesperson made the announcement today. the u.s. was already withholding $255 million in military aid to pakistan as the white house reviews the nation's contribution to the fight

against terrorism. the trump administration is proposing to open almost all u.s. coastal waters to oil drilling, including those off of california and florida. the proposal released today by the interior department proposes 47 possible auctions of drilling rights. they are in more than 90% of the u.s. outer continental shelf. the department of justice has issued a memo rescinding an obama era policy that helped states legalize recreational marijuana use. in states where marijuana is legal, attorney general jeff sessions has directed federal prosecutors to use their own discretion in enforcing federal law. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. "bloomberg technology" is next. ♪

emily: i am emily chang and this is "bloomberg technology." coming up, fall out from the intel chip saga, how a design flaw could impact almost every computer, smartphone, and server out there. we will tell you what you need to know. plus startup is looking to take , one up the likes of tesla, google, and uber in autonomous driving. how startup aurora is already testing systems on audi suvs. industry watchers are closely following apple next step but it's future iphone batteries could cost the company billions. intel stocks under pressure as followed continues from the flaw discovered in the chip design. the company and other chipmakers and software companies are coming to grips with the vulnerability that leaves and incomparably massive number of devices susceptible to hacking and slowdowns.

google discovered it could give hackers unauthorized access to sensitive data and the remedy could drag device performance. intel says fixes are coming over the next few weeks and no material impact to its business . microsoft says it has issued a , amd, andix for intel arm chips. joining us is our tech reporter ian king. put this into context. walk us back through the timeline. when did intel find out and how long has the tech industry thing then keeping this a secret? >> google and academic researchers found that this may be a problem going back to the middle of last year. the idea was to get together and find a fix, then we put that fix in place, and then we say, this is what happened and we sorted it all out. do not worry. unfortunately, news intervened and people found out. now they are in this scramble mode where intel was forced to come out and say it was not just us. and now we do not have all of

these fixes in place. we do not know the impact on computers. a lot of concerns. emily: are there any legal issues? >> nobody has said anything yet , but this is the kind of thing that class-action lawsuits are designed for. regulators might look at this and say, hold on a minute. you have one or two companies who everything depends on. why are we giving them so much power and so much influence and the potential to damage? emily: we are talking about almost every computer, smartphone, and server out there. what are the impacts? what does this flaw mean? >> there are no reports that anybody has exploited this vulnerability yet. people did not know about it, maybe they were working on it and maybe now they are working on it.

the important thing is that if you have a computer at home, you have areas on the computer where passwords are stored, where encryption keys are stored, in a normal course of events, programs you use do not have access to that data. this feature of chips allows, in theory, access to the data for high-level programs and makes it more vulnerable result. emily: intel says they will not have a significant financial impact from this. how could that be? >> in the past they have recalled chips like a carmaker . this time they say this is a feature of chips and it makes them faster and they work as they should. we have no liability. emily: now another thing that does not look good is that intel found out about this six months ago. the ceo sold a very large part of his stock later in the year. what happened? >> this has created a lot of attention.

if you look at the filings as we did, this was a regularly announced plan. executives usually set out a plan where they say in advance, i am going to sell this amount of shares, and that ensures them against accusations they are trading on insider information. the timing of this and whether intel knew this would be such a big deal and affect the stock, that is all up in the air and we cannot say with concrete basis that he knew it was coming. emily: is it true that he now holds the minimum amount of stock? >> that is correct. emily: is that typical? >> we are at the lowest point in five years in terms of his holdings. emily: ok. apple, google, microsoft, all working on fixes or have completed fixes. there are people who say, they the software will completely fix this, however not everyone is going to update their devices. right? what are the longer-term

implications of it? >> as you said earlier, this may affected the performance of computers. fix it and maybe your older machinery slows down in a way that is no longer useful. it is a difficult situation for a lot of computer owners and computer operators to be in. at the same time, there are some details, and we do not know how it will play out. one of the biggest concerns is how data centers will be impacted. because what they do naturally on the have three users same computer. one of the concerns is that this issue makes that less safe. that could have a big impact. emily: all right. our tech reporter ian king who covers the chip industry. onnow there will be more this. thank you so much for that update. we will talk about this after

the next break. but first, mark zuckerberg said his personal goal for 2018 is fixing facebook. zuckerberg posted his objectives on his facebook page. the social network has come under criticism for failing to prevent russia from meddling in the 2016 u.s. election and not doing enough to curb cyber hate. zuckerberg said his company "has a lot of work to do." coming up, more on the bug that may impact every computer processor made since how should 1995. companies and consumers react? and bloomberg technology is live streaming on twitter. check us out 5:00 p.m. in new york and 2:00 p.m. in san francisco. this is bloomberg. ♪

emily: sprint has hired michele cohen as president and chief financial officer. the 65-year-old left a company as investors grew unsettled over their profit outlook and debt load. sprint shares falling 5% on the news in thursday trading session. fallout continues from the intel chip saga. the company says it is working with hardware makers and operating systems on the issue and will design future chips to avoid this problem. tech giants like microsoft, google, and amazon say they have issued updates for their cloud and software systems. we are still waiting to hear from apple on this flaw. we reached out for comment from apple. joining us now is brian white and bob o'donnell. bob, as you say, this story has more nuanced than intel did not tell us something.

how so? >> what we are talking about is a future, feature that has been a processes for over 10 years and nobody discovered it until now and it is used in intel, arm , amd designs, and arm licenses to apple, qualcomm, everybody is impacted. what i find fascinating about this whole story is that i was brought in a couple of weeks ago by the companies to get a sense, because they knew it was a big deal, and in 20 years as an industry analyst, i have never seen companies come together in three a briefing to talk about the issue and how they are addressing it as an industry. to me, that is a very important side of the story that has not been told. there are a lot of problems to be clear, but there are interesting ways the issue will be mitigated. i think we will see discussions from apple and other people. emily: do you think they should have told consumers? >> i think they were going to. emily: it has been six months?

>> the transparency of the industry is working. together.working it was responsible disclosure, which is important. they found the vulnerability and inform the manufacture and working on a patch and were planning to announce it. we believe next week, but somebody leaked the information, and now it is public. it shows that the community is taking more seriously security and this is ubiquitous, the processors are in everything we operate. if there are issues at this level, where are there not issues? is thisow serious issue in terms of impacts? we do not know anyone exploiting this flaw, but we also don't know a lot things about attacks happening as we speak. >> it is a fair point. it still remains to be seen. there are some variants are worse than others. very three allows people to get

access to private data. that is the most people are one trying to address immediately. this has been out there forever. we are seeing it being addressed now. in theory, there are bad things that can happen, but the fact it took 10 years to discover it , should give you a sense of how hard it is to exploit it. emily: who could exploit this vulnerability and what could they do with that information? >> i would suggest that those who have significant resources, for example, google has significant security team and they can spend the time necessary to find this vulnerability. those actors such as nation states may have the capability to know how to actually access and take advantage of this flaw. and i also think what is important here is that there are no known attacks that are ongoing right now. we are still unsure if you can execute this remotely or you need to be on the user machine.

so there is a lot we don't know, but i do think that it reinforces two things to me. one, increasingly the software they are operating is secure. we are looking at kernel level problems. we know that if a determined adversary wants to gain access to our machines, they will gain access. there is no way they will not find a way in. this is another way they may potentially be able to exploit. emily: what should consumers do? >> i think the consumers need to update. there will be two types of updates, software updates and hardware updates. it is very easy to take down your software update. we do it often on our iphone and everything in the house. i think the hardware update may be more difficult, depending on how they push it out. it is going to be straightforward given the attention this has received. i think the manufacturers are all over this and we will be protected. however, what is important is

that it reinforces that you need to protect your data and you need to understand who is accessing that data. just like we do with our personal data at home, do precautionary measures for what is most important and make sure that only certain people have access to it. this: what do you think foreshadows for the year ahead in cyber? >> i think it will focus a lot of attention, in some ways, i have seen people write articles, that say, as bad as this is, it will lead to better things , because what you do when you find weaknesses is you redesign ways, in different re-architect software, rebuild the hardware to do this. to raise a point you raised earlier, it is common in the security world for people to tell people about an issue and give them time to fix it. actually, normally what project zero does is give people three months. because this was deep level stuff, they needed more than three months, and they were in fact scheduled to do it january 9. next tuesday was the scheduled

date, which was six months pass when they got it because they knew they needed extra time. we will see more awareness of how the process occurs and more sensitivity to what is going on and people figuring out how they do this. we need better update policies , because it is going to be hard. the firmware stuff can be hard update. apple will do it with a os combined. with a pc, you have to do a bios update. emily: quickly, we know companies are cooperating and we know that vulnerabilities being discovered are more specific, that hackers are getting better at their jobs. if anything changing? less or more of a threat? it inis important to keep perspective, understand your threat and understand what you need to do to make sure you are adequately protected. and remember to protect the data. that is where security needs to live. it is not about protecting the kernel, the software. it is understanding the data and

understanding human interaction with the data. just keep in mind that it is a layered approach. it is also basic training. it is all of the elements together that over time will increase our cyber hygiene and make us better. brian white,ght, great to have you back on the show. bob o'donnell, you are sticking with me for the hour. coming up, the race for fully autonomous cars is on. annual global sales could reach $1 billion by 2025. this is bloomberg. ♪

privaten deal news, equity firm silver lake has taken a majority stake in wp engine's. silver lake invested $250 million to help the web tech

startup. engines they built tools to betr operate websites based on wordpress and open-source to use and manage websites and applications. driverless car's are prepared for liftoff. according to a new study the company says autonomous cars are launching first in the u.s. in the next couple of years and will reach one million in annual global sales by 2025. that number will increase drastically with analysts -- jeremy carlson still with us is bob o'donnell. what makes you think they will run up so fast, multimillions in 2040? >> we took a close look at a lot of factors. technology, regulation, consumer interest, and all of them will help bring the technology to market early on.

we expect over the later parts of the forecast, into the 30's, that the service-based business model, mobility as a service is really going to start to drive demand for a lot of the alternatives to vehicle ownership. emily: are these cars that still need a human driver in the driver seat? >> know, these will be fully autonomous vehicles. in the industry, we align to a standard called the levels of automation by the society of automotive engineers. these are level four and level five, which means they can go places without a human driver behind the wheel supervising or controlling or anything. early on, they will be limited to certain areas and certain speeds and certain neighborhoods. but we will certainly expect that to expand over time, and relatively quickly. emily: bob, do you agree with these numbers? >> first of all, that is seven years from now. most people cannot think two years from now. it is interesting, you have the auto and tech industry going, we

have autonomous cars and they are here, and people say 2021 and some people say 2022 and now it is 2025 before we get to $1 million. it is possible to see the numbers by then, but so much has to happen between now and then. here is my concern. my big concern is around any fatalities or injuries caused by these cars. if that happens early on, unfortunately you will see regulation after regulation, and that will push all that stuff out. they could completely change this. emily: when it comes to regulation and safety, what needs to happen between now and 2032 hit your target? >> there are two parts to the regulatory puzzle we have to solve. bob is right. there is work that needs to be that needs to be done initially and plenty of work that will need to happen over time to continue to create these paths

for deployment and allow deployment at scale. there are two factors, the autonomous technology, allowing rules that would regularly govern drivers to govern a machine. and second is the business model side, where we are seeing some restrictions in some markets around the ride hailing business model that we expect will contribute to quite a bit of that demand early on. and a good portion of it over the length of the forecast. emily: bob, there are so many issues as we have discussed, so many different manufacturers and companies vying for a piece of yet, event, and though many of the cubbies have been working on the cars for a long time, we are still not nearly there? >> no, it is incredibly hard to be this right and we are talking about people lives. talking about computers and data. now add in the equation of this stuff impacting people's lives. it is significantly higher

standards for safety and for backup and everything else, backup systems i should say. and so, i just think it will be a very challenging path. you have plenty of tech industry observers that has said this is a 20 year thing, a 30 year thing, and we are getting too far ahead of ourselves and setting unrealistic expectations. i think the ridesharing services and robo taxis will be the most, wait most people will interact with this first. emily: how many cars are personal transportation and how many are robo taxis and airport shuttles and the like? exactly. early on, we expect the vast majority of these fully of pharmaceuticals will be deployed, autonomous vehicles will be deployed, mobility fleets which allow manufacturers and operators to do more with the vehicles. you understand where they are

being operated, who is operating them, and you can better understand the economics of repairs and maintenance of the vehicles. it means you are able to learn from what the vehicles are doing much easier than you could if they were in the hands of consumers. fundamentally, there are a lot of reasons that make us believe mobility as a service, specifically the ride hailing business model, is the way the vast majority of consumers will interact with fully autonomous cars for the first several years, and probably well into the middle of the 2020's. but certainly over the end of the forecast horizon, again 20 years out from this point, we would expect personal autonomous vehicles to represent a good portion of the fully autonomous market. emily: all right. jeremy carlson, ihs market principle auto analysts, thank you so much for sharing your forecast with us. bob o'donnell, you are sticking with us. >> thank you. emily: ok.

sticking with autonomous cars, the former head of google car project is now taking on the tech giant with an autonomous car startup of his own. we will talk about his new project next. this is bloomberg. ♪

>> it is 12:30 in hong kong. president trump has called the book that led to his editor split from steve bannon phony and full of lies. in a late-night tweet trump said he gave zero access to the author and says look at this guy's past. watch what happens to him and sloppy steve. and iosys all mac devices are affected by security issues. no known exploits have impacted customers. it says recent software updates mitigate one of the fun abilities without affecting

performance. china has issued new rules for equity investment by insurance funds. the regulator says the change is intended to curb local debt. local governments raised 670 billion dollars through debt offerings in 2017, down 30% on the previous year. hong kong's richest man sees no end in sight to demand driving up rises in the world's most expensive real estate market. that puts li ka-shing at odds with a firm. the imf calls it overvalued. remains -- demand remains very strong. i am still building hotels and have bought shopping malls, getting rental income for the long-term. our companies rental income was actually at a record high last year. >> global news 24 hours a day powered by more than 2700 journalists and analysts in more

than 120 countries. this is bloomberg. let's check the markets. here is juliette saly in singapore. >> what a week for asian equities, on track for the best week since july last year. msci asia-pacific index holding on to record highs and building. some fluctuation out of hong kong in the morning. it didn't go into the lunch break on a positive note. the hang seng has been higher for eight consecutive sessions. the australian sharemarket up .7%, a 10 year high for the asx 200, some good gains in the kospi as well. the nikkei building on that gain yesterday, the strongest in more than a year, the nikkei up .6%, 1992 holding onto january highs and strong momentum coming

through. of u.s. dollar weaker ahead u.s. nonfarm payrolls giving a boost to currencies in asia. down to theing reopened in hong kong and china at the top of the hour. ♪ emily: this is the "bloomberg technology." i am emily chang. three autonomous car engineers are taking on their former employees head on. the longtime director of google's car project, the former head of tesla's autopilot and a founding member of uber have come together to form a startup called aurora. the company will develop self driving electric cars with major automakers. i asked what the team at avarua brings to the table that others may not. >> drew has been doing machine

learning before it was at this big thing. sterling has shipped products and model x,opilot and then with my experience at google, we have gone a long way down the road with vehicle technology. the chance to pull those experiences together was exciting. emily: you ran the google self driving car unit for a long time. what are you doing differently at aurora? >> first, we are building it much more quickly. when we started at google, it was not clear this is going to be a thing. we were cautious about how we were going to build our team. we took a lot of time to learn. now we have the experience we can build from. we have these three great leaders and this core of amazing talent around them. emily: some observers would say google still seems to be taking a long time. why is it taking so long to get to market? >> self driving cars are hard to build.

we drive cars every day, so we taken for granted. but getting to the point where the vehicles are better than a human, it is actually a lot of work. there is all of this hidden work that happens from working 99% of the time to 99.999 percent of the time. emily: i rode in a self-driving car in 2011, and i rode in the gm car a year ago. it did not seem that different. what would you guess? >> the hard part of that is that tricky things happen rarely. what we are trying to do with this technology is save lives on the road. it is a tragedy that 38,000 americans thy every year, but it turns out you have to drive 85 million miles before someone dies. if you drive around the city for an hour, the vehicle may seem

like it is driving well, but you have driven just 10 miles, 50 miles, so you don't know whether it is handling the difficult cases come and that is where people are spending time, those rare events. how does that compare for human driven cars? >> for humans, rare events happen -- an accident is reported to police one in every 100,000 miles. someone gets killed on an american road every 100 million miles. self driving cars, we are still assessing where they are on that spectrum. and that is what people are pushing to get to come of these big numbers for performance. over time, we can eliminate all of these accidents. ae key is going to be finding threshold where we are ok having them on the roads and we can start to save lives. as soon as they are incrementally that are than a

person, that is a person's life saved that would have been killed in a traffic accident otherwise. we have to find a balance of appropriate skepticism with speed and safety to the market. emily: you guys are partnering with hyundai and volkswagen. why them? >> they are amazing companies. they have world reach. our mission is to deliver this technology safely, quickly, and broadly. emily: what does aurora offer that waymo does not? >> i would like to talk about aurora offers. we are approaching the industry in the spirit of partnership. we note we can do good work on self driving systems and have an immense amount of respect for what volkswagen can do in building the vehicles and how complicated that is. so if we can partner with them,

we can get this technology to market quickly, we can start saving lives. emily: quickly means when? >> as a soon as it is done. i think within the next five years you will see this. emily: did they get a stake in aurora, hyundai or volkswagon? >> i don't want to talk about emily: looking at the broader the financial terms. self driving car industry, how do you see if it evolving? company ision of the to deliver the technology as quickly and safely as possible. as we move through the world, we will look at the options. emily: looking at the broader self driving car industry, you have giants like tesla and google. how do you see this industry evolving? , many see a winner winners, a particular tech giant forging ahead? >> i think there will be a handful of winners at the end of the day. this is a very competent at

technology. at some point it will be good enough. at that point, partners will want to use it. we will see the safety, economic benefits, improvements to the city around us. at that point, the company that can bring the technology to scale will start to see improvements on that. i think there will be a handful re these companies because the will be 1-2 per kanaan to -- per continent. it will be an important technology for each of the major players to have a stake in. emily: will apple have a stake in this market? >> i would not count them out. they are an incredible company. any of these tech companies have so much capability, and all the automotive guys due to0. emily: one of auroras stated values is no jerks. what does that mean? >> that we are solving a real hard problem and don't have time

for interpersonal garbage. we want them to come. we want it to be about how do we solve the problem, not treating people poorly or over inflating egos. let's work well together and let's respect everyone. emily: on that note, how would you describe the competition for self driving car talent. how fierce is it, and how do you get them to come work for you? >> it is aggressive now. it is hard to find talent. we think let's give them a mission that matters. then the rest of that takes care of itself from there. i think people want to really do something that matters. emily: employees at the white house will no longer be allowed to use their personal phones at work. pose the ban,

citing security concerns. white house aides say the change is not due to concerns that staffers have been leaking to news outlets. the music industry raking in the past sales and years as spotify gears up for its ipo. we will talk about the streaming music landscape next. this is bloomberg. ♪

emily: disney will find out soon if the force has awakened in china. the latest star wars movie opens in theaters on friday there. china is the last major market

to get star wars, the last the jedi. star wars has never had the same following there as elsewhere. globally, the movie has taken in over $1 billion at the box office. a new report says there were a record 377 billion songs streamed over 2017. industrye music thrives, subscription streaming services are growing rapidly and reshaping the industry. joining us now is the ceo of a start up that handles the tech and licensing of popular songs for game developers and e-commerce sites. bell ball what do you think of 's unconventional listing? >> this is certainly an exciting time in the industry. historically companies have had challenges, licensing complexity, difficulty raising capital. when there is a positive exit, particularly with all the recent m&a activity, it shows a positive sign. folks running small companies

ups get excited, but it is also great for the broader industry. more capital. emily: spotify has 70 million subscribers, how much room is there to grow? >> we talked about this earlier. with the broader launch of different ways to experience music, through wearable devices, home, a variety of different technologies, there is room. the largest age group in the united states are young adults, z, so wels and gen see this continued growth of music consumption to be alive and well. emily: when you look at the broader market, spotify, apple music, tencent music, how do you see the various players taking pieces of the pie? >> what is interesting is we have seen apple try to take a bigger piece of this pie and frankly struggling to some

degree. google through youtube has been trying to do that. in an interesting way, smaller companies, even though spotify is not small, have a better opportunity. there has been concern from the big record companies to align themselves to tightly with apple and google. so that is why spotify is well-established. speakers are the hottest category there is. spotify works great with that. emily: would you agree? >> absolutely. keep in mind amazon is not the only player. people have the echo. it is certainly gaining popularity, but there are a lot of companies that are trying to innovate around how can we integrate music into their product. what is interesting is we start moving -- obviously spotify is a subscription-based model. these hardware companies, once you buy the product, it is one

and done. now there is an opportunity to inject a subscription-based thesis. it might be music or other content, to drive revenues and as a growth opportunity for older companies. emily: what is the biggest threat to spotify? >> i think obviously they have significant challenges. the licenses for starters are certainly very complex. the licenses are governed by the labels and the publishing companies. they have to make sure they keep the labels happy. having said that, as it relates to new entrants, the beautiful thing about technology is there are always folks that come to town to challenge. >> the other thing i would throw out there is the labels are dependent on streaming services. you talked about how music is growing. it is growing because of streaming services. so they have to work with these companies. they have to figure out which

ones they want to work with. fundamentally, their long-term health is dependent upon having platforms through which their music is going to be played. that is where spotify fits in. emily: there has been a lot of interesting m&a in the industry, apple buying shazam. >> it is interesting. it is important to mention, followed as well, that flip-o-gram. that was a massive, allegedly massive exit. billionllion to $1 exit. these are not exits we hear about, particularly in the music space. soundcloud sold a controlling interest to a equity shop, so there is a lot of activity. and music which is somewhat of a beleaguered space, you look at pandora stock -- emily: i was literally looking

at pandora stock. pandora has not fared well. pandora was the thing. >> that's right. it is trading at a 52-week low. pandora went through its share of challenges. they had numerous numerous near-death experiences. people forget that spotify at the outset, they said you are never going to get your deal done. they did a phenomenal job turning it on its head. spotify with this upcoming, unusual them a direct listing, here they are again saying we're going to do differently and prove everybody wrong. ,mily: it will certainly be there will be a lot to watch. and ie a front row seat am glad you are there to narrate. thank you so much. you are sticking with me. coming up, could apple's iphone battery fix threaten the upcoming divan for its super cycle of devices. we will explore why every sale

counts for the tech china. this is bloomberg. ♪ -- tech giant. this is bloomberg. ♪

emily: at&t aims to be the first carrier to provide 5g to phone customers this year. this pits the wireless giants izon and against ver t-mobile. wall street is trying to get a sense of the bigger impact of apple's battery controversy. a report from barclays says the offer by apple to replace batteries cheaply may cut sales to new devices by millions of units as consumers delay paying may for an upgrade. can it disrupt apples product cycle and demand for the smartphone? how badly will this hurt sales? >> this is not a massive number

in the big scheme of things, but it could be a big enough number to knock it in one direction. long-term, it is not a big problem for apple, but if people are looking quarter by quarter, it could be a hit. >> i had personal experience because both of my kids have phones that had issues. we replaced batteries and it was like they had new phones and they perfectly fine for a year were and a half. i can speak from experience that it really does make a difference. given the reports we have heard about concerns, now that iphone , has passed the early adopters we are hitting mainstream and maybe not doing as well as we thought. from ahis in, and quarterly basis, this could be a noticeable number. emily: could there be a long-term impact?

it is not just the super cycle, but every cycle. >> for a long time we have been thinking that what apple does is it works in new, shiny chips to run the latest software. but actually they have tacitly admitted you don't need this new phone to run the new software because it works perfectly on the old phone. don't build in redundancy into our phones. we want everyone to use their phones for as long as possible. the time it takes for people to upgrade their phones has been two years. now people are looking at it being three years. the sweets right in spot of phones they want you to upgrade from and these are the ones that are saying they do not need to. >> that is part of the issue him a but on the other hand, let's give apple credit. this is an incredibly positive --stomer new moon customer move. people say that they appreciate

that apple is willing to do this. emily: billboard magazine jimmy --that is leaving apple in april. >> it is slightly incremental news. jimmy iovine, we interviewed him last year. he is a very impressive guy. he really is an empire builder. the fact apple is building its own television and video content arm and is not under his auspices, that perhaps is some indication. emily: did you ever think he would stay at apple long-term? >> i did not think he would. he is a music industry guy going to a corporate tech company. it was fun and exciting.

emily: will it impact apple's music? apple leans heavily on music as part of its cultural -- it's culture. culturally they like having taylor swift and drake in ads. does it make that much money? the profitability in the music business is less than the iphone. they have to give 50% of the revenue to the labels. it is not a massive profit driver. will: all right, well, we be watching to see if it is august indeed. alex webb, who covers apple for bloomberg technology. thank you as always for joining us today on the show. that does it for this edition of "bloomberg technology." a reminder, we are livestreaming on twitter. that is all for now. this is bloomberg. ♪ retail.

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