emily: i'm emily chang in san francisco and this is bloomberg technology. coming up in the next hour, conservative bias. president trump claimed that social media companies discriminate against conservative speech on their platforms, adding, we have to do something. plus, google gains. alphabet unveils tuesday a new game streaming service at the game developers conference, marking a major knew foray into the $180 billion industry for the tech giant. and apple introduces the first

update to its mass desk top computers in two years. what you need to know about the hardware refresh. but first, to our top story. the president is once again complaining that social media companies like facebook and google are silencing conservative voices. take a listen to what he had to say tuesday. president trump: we have to do something. i tell you, i have many, many millions of followers on twitter. and it's different than it used to be. things are happening. it seems to be if they're conservatives or republicans or in a certain group, there's discrimination and big discrimination. i see it absolutely on twitter and facebook, which i have also, and others i see. emily: despite that, the president's 2020 re-election campaign is spending heavily on social media. research from bully pulpit shows that trump has spent close to

double the amount of his democratic rivals when it comes to facebook and google apps. to discuss, we've got michael beach in washington. he's the c.e.o. of cross-stream media, a digital marketing analytics firm. he's also a veteran of republican presidential ad campaigns. here in the studio we have tom. what's new about this latest attack from president trump? on social media? >> it comes at a time when one of his staffers was temporarily removed from facebook. it comes -- which we think was mistaken. emily: what happened there? >> it comes at the same time as nunes has sued twitter for $250 million. emily: congressman nunes. >> that's right. alleging bias by him. there's a confluence of events. and this is just a couple of days after facebook has gotten in trouble over the shooting, which once again social media is in the spotlight for doing bad things. emily: tell us about the staffer.

it appeared one of the companies thought he was a bot, right? >> that's my sense of it. as far as i understand, this was a mistake. he was temporarily removed. but it's unfortunate the timing here. what's interesting to me is that people who -- what facebook and twitter will say to you is we're adhering to our guidelines. people will be removed if they violate our terms of service. they say there is no bias here. and in fact, legal precedent so far has shown when people have brought cases against twitter and facebook, alleging anti-conservative bias, those cases haven't made it very far. there hasn't really been this proof provided in the court system that they're being discriminated against. emily: facebook saying and apologizing to the white house social media director saying it mistook him for a bot. michael, meantime, you worked for the romney campaign, the

cruz campaign. what do you make of president trump's spending here on facebook and google and how does it compare historically to prior candidates? >> i think overall it's a very smart move. the way to look at it is, one, they're an incumbent, without a primary challenge. so they're able to allocate resources a lot earlier for the general election than a campaign, a democrat right now in the primary, they really have to worry about getting out of the primary. so the president's campaign can focus all of their attention on persuading any kind of swing voters. right now it's really about building their base and reaching out to those voters. they can now do that for a two-year period which is a big advantage. emily: the candidates are also spending far more on facebook and google. three times as much. does that make sense? >> facebook plays a major role in politics. their platform is second to none in terms of targeting, ease of use.

the other way to look at it, in terms of social video, facebook accounts are part of that. when you look at the whole pie of video advertising, it's only 8% of total when you include television. there's a lot of room to grow for both facebook and google as well as other channels like connected tv. emily: meantime all of these platforms are battling issues around hate, misinformation, as you mentioned representative devin nunes has sued twitter for $250 million in damages and users behind unanimous twitter accounts that he claims have smeared his name. is this a little bit like welcome to twitter? haven't many famous people, and not famous people, had their names smeared on twitter? >> people say a lot of terrible, terrible things about other people on twitter. and i think we've all experienced it. anyone who is an even somewhat public figure can understand this. and folks on the right, folks on the left, have been victimized. and folks on both sides have been the bullies, if you will. emily: is there any precedent

for a case like this? is he on to something? >> again so, far, there have been a couple of cases that have made their way into the court system. but very recently, in a case against facebook, one of the judges appointed by donald trump dismissed the case. there hasn't -- there hasn't been proof provided that these kinds of activities are going on. and in fact, it's very much in twitter and facebook's interest. they've been criticized for this anti-right bias for a long time. and they are going out of their way to try to demonstrate to their audiences that this doesn't exist. and i mean, to me, you know, i look at folks across the political spectrum who seem to have no problem getting their message across. they're not being silenced. in fact, their voice, donald trump, you know, at the beginning, you know, from the beginning, has used twitter to

amplify his voice and amass an increasingly growing following, despite the number of people who say he violates terms of service and he should be kicked off twitter. emily: meantime, i spoke with trump's 2020 campaign manager last year. and he talked about how they're going to continue to double down on these social media and tech platforms but watch how they evolve. take a listen to what he told me. >> if you're watching facebook for four hours, this year, but next year you're watching three hours of facebook but one hour of u tube, that changes. we're going to monitorize. i think youtube continues and google continues to work on that platform and make improvements. i think what google's done to the search algorithm to put youtube results at the top, they continue to put a lot of focus and they understand the value of that platform. so we're watching it closely. we're using it for a lot of things now. we're using it more now than in 2016. emily: do you think the scandals and controversies that are impacting facebook and twitter and youtube, do you think that

could influence the candidates' ad spend or do they have nowhere else to go? >> they have plenty of other option but i think if the scandals don't impact the user base of these platforms, then the money's still going to flow there from an advertising perspective, whether political or nonpolitical. emily: do you think the democratic candidates need to step it up and sort of match what president trump is doing? on these platforms? >> remember, they're playing a different game. so for the next 12-plus months, they're in a primary where really their entire voter base are democratic primary voters. you're talking about 20% of total voters is their entire audience to win the primary. whereas the president can think about the general election for the next year-plus. so that's a big advantage. they're talking to completely different audiences. the president's talking to the conservative base and swing

voters and the democrats are just talking to the democrat base. emily: we'll have to compare when there is a nominee. michael and tom, thank you both. the u.s. department of transportation has asked for a wide ranging review of how the government and boeing certified the 737 max. the jet that has been involved in two fatal accidents since october. the 737 max family of jets was grounded by the f.a.a. last wednesday after evidence surfaced linking the october 31 air crash in ethiopian airlines crash on march 10. coming up, google is pushing into the video game industry. what we know about the company's new streaming service next. and if you like bloomberg news, check us out on the radio, listen to us on the bloomberg app. this is this is bloomberg.

emily: google is betting big on gaming. they unveiled their new game streaming at the game developers conference in san francisco tuesday. it will let players access high-end games through the web without purchasing expensive consoles or personal computers. it's already being nicknamed the netflix of gaming. google also introduced its own game controller for console-like gaming on a computer or smartphone though much remains to be seen how well this will work. i spoke with google vice president following the announcement. take a listen. >> we see it as the new generation of game platforms. that combine the world of watching games and playing games into one seamless experience. this has been perfect for the 21st century powered by the amazing technology that only google can bring to bear. emily: but can only google bring certain kinds of content? will this have exclusive content? >> yes. we formed -- we announced today the formation of games and entertainment which is google's first party games development

studio. and we are working with developers to create games exclusively for it all around the world right now. we've already shipped hundreds of development tools to leading studios and they're hard at work creating games for the platform. emily: will you also be licensing content, gaming content is a lot more expensive than typical streaming video content. >> we partner with game publishers and developers big and small of the you saw some of the leading likes of the game industry from take two, all bringing their amazing experiences to our platform. but also, it's about bringing youtube creators into the mix. where you tube creator who has millions of subscribers can bring their fans into the game and allows game developers to connect with more and more people seamlessly across all the screens in their life. emily: if this is successful, it could mean a huge shift in the gaming market. but how will you make sure that

the experience is consistent across devices, given the differences in bandwidth when it comes to everyone's internet experience? >> that's the magic of google technology that runs in our data center. that allows us to utilize our advances and investments in codex and streaming technologies, both at the hardware, software and service level, and that allows us to take the developers' original vision and stream it to the users' home, to the gamer's home, and allows us to stream up to 4-k, 60 frames per second with all the latest, great of the visual and audio capabilities and technologies that gamers are used to but without the need for a dedicated box, console or p.c. emily: do you then need to have a 4-k tv? i know you also unveiled your own controller, though you don't need a console. >> if you have a 4-k tv, then our tech nothing will scale up

-- our technology will scale up to bringing that great quality of experience to your display. but if you have a laptop, which is less resolution, lower resolution, then our technology will adapt the stream to mean that we bring the best quality to the device that you play on. and as we showed in our presentation, you can seamlessly move between devices, whether it's on a phone, a laptop, a tablet, a p.c., or a tv. the same game moves instantly and seamlessly between those devices. emily: the game streaming market to balloon to an estimated $11 billion. how much of that do you think google could capture? >> the games industry is on its way to $140 billion this year. and we at google already enjoy a significant partnership with game creators and developers all around the world through our android play and youtube platforms. and with stadia we think there's an opportunity to grow this even

more. if we can give more players the chance to connect with more games, more seamlessly, this will grow the market for everybody. emily: how could this fit into google's a.r. and v.r. efforts in the future? >> could you repeat the question? emily: how could this fit into google's augmented reality and virtual reality efforts in the future? >> so google continues a lot of very interesting and exciting r.n.d. efforts but we don't have anything to announce today. emily: my interview with google vice president, phil harrison. to discuss stadia further, we're joined now by our bloomberg intelligence analyst. matt, what do you think of what google has unveiled and how disruptive this can be? >> i mean, the future of gaming seems to be in the cloud. that's where everyone's driving toward. it just seems like we're at a point in time where the technology is just starting to come together, the platforms are just starting to emerge. it's very early.

as of now, without exclusive content, google, you just saw the interview they alluded to, starting their own studio, that doesn't happen overnight. that takes roughly five years to get a product off the ground. they just hired someone to run their studio who is very well known in the industry. at the end of the day, it's going to take several years for the infrastructure, for the content to be in place for this to be a real business for google. up until then, microsoft, sony, the incumbent p.c. platforms are going to do just fine. emily: do you think what they are attempting to do is technically possible, given the quality of video games themselves, is it really possible to recreate that in a living room without all the gear? >> i like to say it's a pipe dream until the pipes improve in the sense that the internet networks, the telecom networks are the real hindrance to growth here. 5-g is going to play a big part in getting this off the ground. the ability to deliver much more high-speed, low-latency

broadband to many more people at a much lower cost. but also to every device is going to be a huge portion of it. right now most people don't have a broadband connection that's capable of running a service like google's trying to offer here, with stadia, or with microsoft and x-cloud. but over time as fiber connections rise, as 5-g penetration rises, we might get to a point in the next five to seven years where, ok, now we can hit an inflexion point and see if this market really starts to take off. emily: now, the gaming industry is struggling with addiction. doesn't this mean, if you can just stop a game on your computer and continue it on your phone in the car, that this is going to make gaming even more addictive? >> i think games do a lot of good things for, especially for youth. it teaches you how to collaborate with people. it can teach you how to code. but obviously there's too much of a good thing is a bad thing in many cases. gaming's no exception. and that's just where things like parental control, which google did allude to, come in to play. limiting screen time in general across entertainment products, not just for games.

whether that's watching video or social media. those are all things that internet companies, gaming companies need to be socially conscious of and that's something that google did announce as part of the stadia unveil today. emily: all right. matt, thank you so much for weighing in. coming up, facebook may be under scrutiny for bias but the social media platform is now seeking to resolve a different crisis around its ad targeting. we'll discuss. and bloomberg tech live streaming on twitter, check us out @technology and on twitter. this is bloomberg. ♪

emily: facebook says it will make major changes to its rules for advertisers in order to settle a string of lawsuits

alleging its platform enables discrimination in housing, credit and employment. the partial resolution has a long-running litigation over discriminatory ad strategies is a rare bit of good news you might say for the embattled company. joining us now to discuss is josh. facebook's attempt to resolve bad news, right? what do they have to do differently under this settlement? >> as part of this settlement which the aclu says is stweeping -- sweeping changes to the platform now adds for housing, -- ads for housing, employment and credit will not be able to be targeted based on people's gender or zip code or age. also, when facebook uses its algorithm to create what they call a look-eye like audience, -- look-alike audience, where they put together people to serve an ad to that are similar to the customers or employees you already have, they won't do it based on that criteria. they'll have robots and people testing compliance of these ads. they'll have their advertisers have to certify that they follow nondiscrimination laws.

they'll be meeting with the plaintiff groups. they'll make it so that if you're looking for housing, you'll be able to do a search of all the ads other people are able to see for housing, even if they're not targeted to you. emily: a statement today said this change an important step in our broader effort to promote fairness and inclusion on facebook. facebook was under a lot of pressure to resolve this. i mean, the nbc has called for facebook -- naacp has called for facebook boycotts. how much pressure was facebook under here? >> there's been increasing pressure on this coming from the naacp, fair housing groups, members of the senate of both parties. the aclu. and this is something that's been going on for quite some time now. a series of lawsuits, equal employment opportunity commission, charges. and it's presumably something the company is glad to put behind it. emily: ad targeting like putting

up signs in neighborhoods has been, you know, common practice for decades. what makes this different? >> facebook has argued that there are situations where it's helpful to target ads to particular audiences. the point that scholars make is, if an ad is put in a magazine you don't read or a neighborhood you don't live in, you could at least incidentally come across it. but on the internet, if you're digitally red-lined out of it, so to speak, if the job is only posted there, it could be impossible for you to ever even nope know about a job you might be qualified for, even if you're not the type of person so, to speak, that the employer was looking to hire. emily: could the removal of some of these lines impact other kinds of advertising? >> well, facebook has said that there is the potential that these changes will be unwelcome to some advertisers in terms of getting what they want. and that it could impact them, but not impact facebook's revenue significantly. emily: does this end all of the

lawsuits or are there still disputes out there simmering? >> there's still simmering, escalating litigation against some of the companies that allegedly advertised in a discriminatory way on facebook. so, named defendants like amazon and t-mobile, a class of arguably hundreds of advertisers, they have a hearing in court next month. emily: we've seen of course how this will be executed and facebook has often made these grand pronouncements and then when you see the execution, there are mistakes being made. what will you be watching for? >> they're going to be meeting with the plaintiff groups, including the communications workers of america union, which is separately in a coalition calling for the breakup of facebook. so, when they get together with that union, with the aclu, with the housing groups every six months, it will be interesting to see what happens. emily: all right. josh, as always, thank you for your coverage of these issues. appreciate it. >> thank you. emily: coming up, if you like

what you see on instagram, now you have the option to buy it. we've got the details on the social network's new ecommerce strategy next. and later in the show, another day, another apple product update. this time it is the imac's turn. we will discuss the model and more. this is bloomberg. ♪ you.

all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome.

emily: after years of posting beautiful images of food, fashion and design on instagram, people will now be able to buy items they see and like directly through the app. today, instagram is testing a shopping feature with a handful of retailers including nike and revolve. shoppers will be able to pay with visa, mastercard, discover, and paypal. joining us to discuss, paypal coo bill ready. also with us, bloomberg's sarah frier. how will this work? sarah: in the instagram app, you will be able to check out and

purchase a product, which is unlike what we have seen before. previously, they would redirect you to a retailer's website complete yourd purchase, but what this does for instagram is it gives them another line of revenue beyond advertising which is going to be extremely significant to their business over the long-term. emily: you wonder how significant. how much business and traffic will this drive for paypal? bill: this is building on a phenomenon we have seen for a long time, of small businesses and other retailers having many new forums in which they are meeting buyers. we think checkout on instagram is a great experience, and instagram has been a great forum for sellers to meet buyers. this has been building for a long time in terms of buyers connecting with brands or with sellers and then linking off to that seller's site. we think it can help more with what is happening, but this is something we hear from sellers

all the time. that is a very important forum for them. we think this is quite an interesting new place for sellers to meet more buyers. howy: it's interesting, but big do you think it could be for you? bill: if you look at our marketplace and partner business, separate from ebay, who continues to be a partner we work with for a long time, but our top 20 marketplaces that we work with are already $85 billion in volume for us last year alone and growing up 41% year on year. that is a very large segment of our business growing quite rapidly. our aspiration is we want to connect our 30 million plus sellers to all the best places to sell. i think one of the most important trends in commerce, a decade ago, it was one place or a couple of places a seller could go to sell online. now there is this explosion of

new forums they can go sell, and we want to help connect sellers to all the best places where they can meet buyers. we think instagram is quite important, so we are quite excited about instagram enabling native checkout inside the stories there. we are quite excited to be powering some of those capabilities, particularly buyer transactions as well as the seller side of those transactions and partnering with them to help user experiences. emily: facebook is going through a lot of changes to add targeting. mark zuckerberg has said the company will shift -- shift to more private conversations. how much revenue do you think this will drive, instagram commerce will drive for the facebook company? sarah: it is hard to say because it is so early. what i think is important to keep in mind is that facebook's legacy business, the advertising that runs on the newsfeed, is not going to grow much more from

here. it is already so saturated in all of these big advertising markets around the world, so the company has been investing in figuring out what their next business models are. and, e-commerce is something that is a very big priority for them for the future alongside things happening in messaging, which may be harder to monetize. i think this is one of the few bright spots they have that is maybe more proven then the other things they are trying like cryptocurrency and encrypted messaging. emily: let's talk about the less bright spots. facebook, instagram are both getting plagued by hate, misinformation. you look at comments, this is a problem on instagram. does that concern you, about being associated with that? bill: we partner with facebook across multiple forums for sometime. we have a growing partnership

there. one of the things we enable is fraud tools, things that enable marketplace and partner operators to go make sure they are getting buyers that are legitimate buyers and getting sellers that are legitimate sellers. all the different forums, we provide buyer and seller protection. so, separate from how we engage here across the way we engage with consumers, we help consumers shop without sharing sensitive financial information. we help merchants connect to more of these forums. there are a number of things that are being addressed in some of these places, but can this be a great forum for commerce? i think you see a number of sellers engaging with buyers there. it is already a great forum, and this only makes it better. we are excited to partner on this, not only providing tools, but also how you go to combat

fraud. sarah: one question for you, bill. do you think consumers will have any hesitancy about sharing their credit card number with facebook through this kind of transaction, or will paypal prevent that from happening? bill: this is something when you use paypal broadly, when you use the paypal button, it is helping you complete the purchase and not having the friction of adding a card. that said, there will be plenty of users that want to use a card directly, and we hope to enable those transactions as well. users can make the determinations of where they feel comfortable with that. we provide the ability to go check out and not have to type those things in, which takes friction out of the process. either way the user wants to do it, we will give the user that choice. emily: you are taking friction out of the process, but i guess to sarah's point, in light of the more recent privacy concerns around facebook, do you think users will want to share and store their payment information

with instagram today? bill: i do see a lot of users wanting to connect with sellers and the brands already. certainly, making it a place for users to feel comfortable doing that is important and something we are working on together. it is something paypal and the checkout option helps with directly, but i think you see a lot of users already engaging there. i think the questions of users engaging, i think that has already happened. i think this is something that makes it even better for the users and more seamless. emily: we mentioned nike, revolve. one other retailers are taking this off? -- what other retailers are off?ng this sarah: i think it will be a very small group for now, but what i am most excited about is in the future, all these people that have created their businesses on instagram based off their following will be able to build a marketplace there. that is going to be uncharted

territory. emily: you will be able to buy kylie jenner's lipstick on instagram? sarah: one day, you will be. these businesses -- some have more than $1 billion valuation -- these businesses that have been built up via instagram followings will have a more direct way to sell, and maybe we will be able to see a little bit more into how that works, how big that market is. emily: sarah frier. paypal coo bill ready. thank you for dialing in today. good to have you. s manic year of production took its toll on workers. staff of the automaker's lone assembly plant in fremont, california, spent three times as many days off the job because of work-related injuries and illness in 2018 as the year before. an indication of how much strain they were under as a manufacture electric cars at scale for the first time. when taking headcount growth into account, the amount of time away doubled last year according to tesla's report. while the overall rate of

injuries per hour of work remained roughly the same as in 2017. coming up, using a.i. and video games to reinvent school testing. we will hear from a harvard dropout who has a plan to even the playing field in higher education. this is bloomberg. ♪

emily: beauty startup glossier is now technically a unicorn after its latest funding round.

the company announced it has raised $100 million in serious defunding led by sequoia capital, pushing its valuation to $1.2 billion. the ceo says, "we are building an entirely new kind of beauty company, one that owns the distribution channel and makes our customers stakeholders." a startup has a plan to fix college admissions, and we know they need fixing after 50 parents, coaches, and test administrators were indicted in a wide-ranging scam. the idea is to find a better way to test for critical thinking skills and better link education to employment. the company's founder is a 27-year-old entrepreneur who dropped out of harvard. rebecca kantar will also be on the cover of this week's issue of "bloomberg businessweek." she spoke with bloomberg's carol massar and jason kelly. rebecca: the ears to this argument certainly resonates when they hear the approach of relinking education to employment. there is an interesting poll

that shows about 40% of students feel they are prepared for work when they leave the entire education system and 40% of employers feel they are prepared for work. interestingly, 72% of college providers feel their students are prepared for work, so there is a little bit of asynchronicity in terms of perceptions in the value of the educational experience and employment experience. it is not unreasonable because the probably are some colleges that do really prepare kids for work and life, and others that don't. what has to happen now and what we are seeing some positive reception around is employers have to take the lead in saying these are the skills that are becoming more important in an age where human intelligence is involving higher order thinking skills, and machine intelligence is doing the lower order ones. we have to see people who can imagine and create. we have to see that people can synthesize quickly with a new information, that they can build a cogent argument. there is some of that in standardized testing today, but

it is this myopic view. it as a little bit of argument supported by some evidence. that challenges -- how often for all of us are we dealing with a static system where everything is written down and there is no change in rules or information? never. you need technology that can really bring forward the employer's desires into the education market as a reality and a tried and tested tool as an educational standard. that's what makes our job so hard. it is not a quick process to go out and find those definitions of skills that matter. carol: one standardized -- rebecca: i would say that argument of bringing the employers into the conversation about how their work is changing, what the future will require, and bringing that back, many parents care. they are choosing that with their dollars. my goal is definitely to set a higher floor for high schools. know that some schools will do a crappy job teaching differently, and it is no fault of theirs. there are all sorts of systemic

problems that make it hard to teach, but perhaps if you could relieve a little bit of that pressure around content, around teaching so many different modules of ap biology or history curriculum -- not get rid of it, just reduce a little bit and focus on a few concepts, maybe some schools choose to bring that to life with solar powered go kart races. maybe schools in pasadena choose to have kids and turned at -- intern at jpl for a couple of weeks. whatever the scenario that is best for those kids, i want a test to be generalizable enough that their progress shows up and we recognize what they have. it does not mean that all kids that do well on the sat will do poorly on our test, vice versa. but maybe some kids who are total diamonds in the rough who are out there slogging through a lot of content that does not land for them, maybe there is a way to recognize some of the skills they have going on behind the scenes, whether they got that in a job after school or watching a sibling or over a summer, i hope our tests are able to set a new north star for

the system. emily: you can read about rebecca kantar's company, imbellus, in this week's "bloomberg businessweek" and hear from more from the reporters and editors every saturday and sunday on bloomberg television and radio. still ahead, by 2021, mobile games are expected to become a $100 billion market, but is google's entrance into the industry a threat to established game makers? we will discuss, next. this is bloomberg. ♪

emily: the game developers conference is in san francisco this week, and mobile gaming is one of the top items on the agenda. according to new data, more than 2.4 billion people will play a mobile game this year. major game studios like zynga got a head start in this lucrative market. zynga has completed two mobile gaming acquisitions in the last year.

joining us to discuss is zynga ceo frank gibeau. frank, good to have you back here on the show. obviously, zynga struck gold with hit games like farmville, "words with friends." then there was a really long dry spell and you were brought in to turn the company around. what does the new zynga look like today? frank: the new zynga is a mobile first company. ing to drivenu forever franchises on mobile. emily: wasn't zynga always a mobile first company? frank: it was on web. it made its name on the facebook platform. when the transition of the market from facebook to mobile happened, zynga got out of position. when our team came in three years ago, our job was the transition the company fully over to mobile. get farmville and "words with friends" to be working on mobile in a more effective way, and that is what we accomplished. emily: is it still about creating these hits and creating

another one, or is success something different? frank: games is a perfect conflict of technology and entertainment. it is a hit-driven business, but what is cool about mobile, people play mobile games for very long periods of time. zynga poker is 10 years old. "words with friends" is a years old. because we have a free to play model, it is important to bring them into the game and give them enough to do so they stay in the game as long as possible. it is a live operations kind of mentality. it is very fast and it is focused on daily reports. emily: you worked at ea for two decades. you've got google now trying to enter the gaming industry. it is already being called the netflix of gaming, which might be overly optimistic, but what do you think of google's efforts? frank: i think gaming is a fantastic category to be in because it is constantly innovating. if you look at google's announcement, it is innovating at multiple levels. i have questions. i think what is good for consumers, it is bringing streaming as a distribution innovation available to anyone. as a content maker, that is a great thing.

content into -- content innovation and distribution innovation should go hand-in-hand. to be able to reach multiple screens is great. i think with your doing by removing a lot of the price up front with hardware, it opens up other bands. we like those aspects of it. whether or not subscriptions work or not remains to be seen. there was a question about how many subscriptions will a gamer have? you are going to have content exclusives on different forms. is not quite like movies where you have an unlimited library, so there will be a challenge has to how many subscriptions gamers pick up. the production model for games can be very expensive. when you are divvying up subscription price on a monthly basis, it is not always work out. that will be one of the biggest challenges. emily: do you have any plans to have zynga games on google's platform? frank: we are very good partners with them on the android platform. it is something we are looking at. emily: what about apple or epic? frank: there is a bit of a store wars going on right now.

another distribution innovation that benefits content makers. we are platform agnostic, and we will make games available for fans wherever we can. emily: you have struck some big licensing deals. disney, "harry potter." what is your view on acquiring licenses versus creating games and your own i.p.? frank: when we started out a couple of years ago, we thought we had room for some strategic licenses. we like big licenses that last for long periods of time. i stood in line for the first "star wars." from our perspective, we want franchises to last long periods of time, and those are brands that have huge global audiences. there are a lot of mobile games released every year. the stores are flooded with titles. when you have "star wars," "harry potter" and "game of thrones," it cut through that corner you see on how a merchandiser communicates. brands are powerful multipliers to attract audiences. at the same time, we have a lot

of wholly-owned i.p. like farmville that really balances out having i.p. as well as the licenses. emily: we will be watching zynga this year. thank you for stopping by. monday, we saw the new apple ipad lineup. now tuesday, we are getting a glimpse at an updated imac desktop computer. this is the first update to this product line in two years. the once dominant product has taken a backseat to the iphone in the last decade. for more, i want to get to l.a. where mark gurman is standing by. why all the updates in one week? mark: right. it seems like apple wants to clear the deck ahead of their march 25 announcement of the netflix competitor. but what we are also seeing from apple is a strategy where they are updating all of their products that they really let languish in recent years. if you go back to october, they updated the mac mini and macbook air. those products have not been updated in half a decade.

in the air's case, it had not been redesigned in 849 years. eight or nine years. fast-forward to 2019, the imac has not been updated in two years, they are updating it. the imac air was discontinued years ago and they brought that back after three or four years. likewise with the ipad mini, it had not been updated since 2015 and they are updating that. there is also talk there will be a new ipod touch this year. there are a lot of things that have been long in the tooth they are finally getting to, and it seems like they are listening to consumers and basically giving every consumer what they are asking for. emily: meantime, reed hastings has confirmed in a rare interview that netflix will not be part of apple's news service which we expect them to unveil on monday. what do you make of this? mark: this was an interview yesterday with lucas shaw, who covers entertainment for us. lucas asked him if they would be part of the new apple streaming

service. it is important because a big part of apple's service is their partnerships with other companies. and, reed hastings said we will not be part of it. we would rather people use our service. it makes sense. netflix has been trying to distance themselves from apple in recent years. they are no longer revenue share partners for subscriptions to the app store. people subscribe externally. it makes sense they would want to be a competitor rather than a partner. emily: is it a loss for apple that netflix won't be on its platform? mark: it is not necessarily a loss for apple, but what we have seen before, partnerships, other companies clamoring to partner with apple. apple was able to come to companies, ask them to join, take a large revenue slice and come from a position of power. now netflix really has no reason or incentive to partner with apple, whereas other services, you have seen companies wanting to jump in with apple quickly.

emily: you and i will be at this event on monday. are we going to see celebrities? like, is oprah going to be there? mark: you will be there, so that is one. [laughter] mark: apple is going to be working with oprah eventually. it is to be seen if she is going to be there. we know that jennifer aniston may be there. j.j. abrams, big-time executive producer, is going to be there. i'm sure there will be a few others sprinkled throughout the crowd. on stage, we will see them with different promotions. my belief is they will show some videos promoting some of their original content, shows and movies. we will see them from that perspective. emily: yes, mark gurman is going to be there. he is a celebrity at these apple events. he gets a lot of selfie requests. you always agree. thank you, mark gurman. that does it for this edition of "bloomberg technology." we are livestreaming on twitter, check us out @technology. make sure to check out our global breaking news network, tictoc, on twitter.

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