caroline: i'm caroline hyde in new york. this is "bloomberg technology." coming up, shares of disney rise to the highest levels ever after revealing its streaming service. from the simpsons to star wars, can disney plus deliver on all it is promising? plus, uber's ipo filing could take hundreds of pages of detailed information about the company, which may be valued at $100 billion. we delve into all the questions.

and among the wave of public offerings is one of africa's biggest e-commerce firms. we will hear from the cofounders as the stock surges in its debut. to our top story. disney surged to an all-time high on friday after the giant gave investors a sneak peek of its highly anticipated streaming platform. the service, which will include hundreds of hours of movies and tv shows, is set to launch november 12 at a rather competitive price, $6.99 a month. joining us to discuss is anousha sakoui in los angeles. that is why we saw netflix shares down. a billion-dollar marketing cap eroded, because seven dollars is a pretty good price point compared to their $11 package. anousha: exactly right. netflix is a volatile stock. next week, we have their earnings. they will swing about. there are some good think pieces

out there as well. we have an interview with emily chang with bob iger that is worth watching in full. to get there interesting details on the proposal. really, they have a huge breadth of content. it really does rival netflix in terms of how many hours you could spend on it. that is not including when you look at espn plus or hulu. but it is going to be family focused. that's very different from netflix. caroline: talk to me about dispelling the myth of this is all just children focused. when i looked at it, i was like, great, my son is going to be entertained, but is there much there in terms of adult content, documentaries and the like? >> they have hours of national geographic. i have been watching our planet on netflix. there will definitely be that kind of content. there's marvel. that appears to all age ranges.

-- that appeals to all age ranges. there's the whole lucasfilm world. the creators of game of thrones, they are actually moving over to lucasfilm to create the next world of star wars in a few years. there's going to be some old fox content potentially. we don't know about some of the edgier fox content. that is clearly not going to be there. there's a? there. caroline: there's also a question marks about the fact that it is going to be lossmaking for five years, but more to the point, what do they do with hulu? there's a lot of competing offerings. disney owns a lot of them. there's also netflix. cbs is looking at bringing one out. does it have to be more about the technology behind it, the ai that powers it to see the right thing at the right time, or is

it just content that is king? >> there's a few aspects. i think there's going to be super majors of content. we already see them forming now. you have at&t, disney, and comcast, and then there's everybody else. you look at what is going to happen to lions gate, paramount, and then you've got the new players. apple didn't show really any content. it has a few tv shows. they probably will have the technology. then you have issues about live. youtube has a popular platform. they showed some new pricing this week for their live tv platform. $50 for that platform. it will be a question of what , can you get at a good price and what is fun to use? disney has a potential advantage. bob iger said they are going to offer disney plus, espn plus, and hulu as a package. you will not only get shows like

"handmaid's tale," but you could have delayed shows like modern family or other tv series. caroline: fascinating perspective. i don't know how we are all going to fit it in. thank you for joining us. emily chang sat down with disney chairman and ceo bob iger right after thursday's announcement. take a listen. bob: i think making them available on a new technology platform that is more modern and growing in popularity at a price that makes sense for the user, that is why we feel confident this is a product people are going to sign up in droves to have. emily: you said you will likely bundle disney plus, espn plus, and hulu. what will drive that decision?

>> you can figure we will bundle disney plus and espn plus fairly soon. hulu, we still have minority partners, and everything has to be done with them in mind. bundling would be something we might take to the management or the board. it would require approval. we think there will be consumers that will want all three. we want to make it possible for a consumer to buy all three. emily: will you be attempting to buy all of hulu? bob: we've been in conversations about that possibility, but it is a little early to speculate. emily: you didn't give up some partnerships with netflix. you mentioned some of your distribution deals. you talked about sony. you didn't mention apple. you didn't mention amazon. why not? >> the app will be available through traditional distributors, apple being one of

them, so i'm fairly certain that if people want to find a app -- sorry, subscribe, they will be able to do it through apple and the itunes store and other platforms could be the traditional cable distributors. we didn't have any announcements because we haven't made deals with all of them yet. emily: you are on the apple board. now that apple does have a direct competitor, will you stay on the apple board? bob: obviously i'm mindful of my fiduciary responsibility to apple shareholders as a member of the board. when this was discussed at board meetings, i'm careful to recuse myself and i'm in constant dialogue about making sure i'm not doing anything that would cause me to be -- that wouldn't be in keeping with what a board

member would do. that business is still relatively small. so far it has been ok. emily: all right, so you noted a lot of losses. you said disney plus and hulu won't break even until 2024. should we assume that you will be flat to down, or will you make that up somewhere else? bob: we are still growing the company. our theme park has delivered great growth. great growth. we didn't give guidance on those businesses. the studio has delivered great growth. we're also absorbing 21st century fox. that will start factoring into our numbers going forward. we are not getting projections about the whole company, but we are confident that we will continue to deliver value to shareholders. both in the near-term and long-term. emily: you've completed the

acquisition of the fox assets. there have been some layoffs, but it hasn't been as dramatic as some thought it might be. will there be more? bob: we still have a lot of integration to go. with the integration comes consolidation. we've been transparent about that. we haven't talked about specific numbers. but there will definitely be more consolidation. emily: you are making a huge transition here with these developments. where do you see disney in 5 to 10 years? do you see disney as more of a technology company? >> we've always seen disney as a technology company. technology was incredibly important to do two things. one, to make our product better, the multi-plane camera and what it did to background and what it

did to 2d films. but also to improve the experience of the consumer. i think in five years, you will see disney basically being a content company that is using technology more and more to do all of the above, make the product better, make the experience better, make it more accessible. in other words, distribute it in more modern ways. caroline: that was disney chairman and ceo bob iger. coming up, leaving the window wide open, uber finally files to go public. we break down what the company will look like in the public market. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

caroline: uber has taken one step closer to hitting the public market. on thursday, the company revealed a report of operating losses last year, hoping potential investors will look beyond that and view them as a platform, a word that appears no less than 700 times in its ipo perspective. joining me is mike walsh. mike is an early investor. also, in new york is eric newcomer. it is your story that highlighted that this company wants to be seen as a platform. it is not just ridesharing. there is so much >> uber eats is more to this company. >> uber eats is sort of the key example of the next phase. it grew to $1.5 billion in revenue last year. uber's story here is, we have ridesharing, that is still

growing, much smaller than it used to be. now we have uber eats. we have scooters. we have bikes. we will figure out other things. that's the story they want. like you said, it is a good way to try to ignore a $3 billion operating loss. by the story, or worry about the bottom line. that is going to be the argument with uber. caroline: as one of uber's first investors, we congratulate you, but did you see this vision of such an omnipresent company? do you see it as a platform? -- did you see it as a platform? >> definitely not. when i first invested, i made a commitment in 2009, and frankly, had i seen it coming, i would have probably mortgaged my house and made a much larger investment. today, as i think about it, and i listen to eric, i do think

there is a platform potential. i was an investor in 1999. -- investor in salesforce.com in 1999. i was one of the first customers. with the software company that i was running, i was one of the first exchange partners. with what they are building, it is clear to me that there's potential to be a platform and take a piece of the action. caroline: eric, as you say, we've got to focus on the growth. at no point did the company ever hint that they might be hitting a profit any time soon, and there's concerns about how the business model might be disrupted in terms of regulation on drivers. what are the key concerns you are hearing from the investor base? >> one interesting metric that uber provides is this adjusted net revenue figure, which takes out some of the driver

incentives and bonuses and further diminishes their financials. if you look at that number, in the fourth quarter of 2018, ridesharing was down only by $1 million, but it is troubling when you want to keep growing and you see it go backwards even slightly. the reason for that is competition. uber has seen a lot of pressure because latin america is a good business, so it's facing more competition, lyft has been reinvigorated, so there's just competition all over the world. uber's take great faces -- rate faces pressure. that really hurts the margins on a low margin business. that is part of the reason they lose so much money. caroline: mike, paint a picture for a would be investor in the public markets.

how much should they be worrying about the fact that it is lossmaking and it has to spend so much to keep up with competitors? mike: i think there's a lot of upside in the cost that they are charging. there is still so much of a pricing gap between the ridesharing companies and the taxis. they've all had to drop their prices to compete with each other. over time, there is that ability to increase prices. i do think there's a ton of profitability in uber freight and uber eats. i'm invested in a freight company. we've been investors in it for about six years. that is a giant market. there's a lot of opportunity to make profit there. caroline: when we are looking at this company going on the

roadshow, what will be the main areas they have to be tackling in terms of areas that people are going to the question marking in terms of growth? >> given that lyft just went public -- understanding market share or category position is going to be key. one of the funny things from a financial perspective is that uber talks about having less than 1% market share. they want to emphasize that there's so much room to grow. but then they need to also say, but we are very far along. they have more than 65% category position. in the united states and canada, they claim 65% of the rideshare market. they claim that in europe and latin america. in the places they don't, they own a stake in the competitor who has a strong position. that is going to be part of the global sales pitch. caroline: mike, will you exit uber entirely?

are you in this for the much longer haul? mike: we are really not a public company investor. we invest in the very early stages. i've got some personal stock that i will hold on to for a long time. when it comes to the stock in structured capital, i'll distribute that and they can decide what to do with it. caroline: great to get your perspective as a very early investor. structured capital is the name of the company. and eric newcomer, after an exhausting week, i wish you a great weekend. coming up, tesla is making it more difficult to buy the

cheaper version of the model 3. that is next. this is bloomberg. ♪

caroline: talks between general motors and an electric vehicle startup may have come to an end. gm has been considering taking a stake to bring electric trucks and suv's to the market faster. bloomberg reports the discussions have collapsed. gm would have joined as an investor alongside amazon, which led a $700 million investment in february. just over a month ago, tesla introduced its cheaper version of the model 3. now it is taking its $35,000 model off-line. in a blog post, the electric carmaker announced that it will no longer take orders for the model. customers who want this version have to call or visit a store instead. this just weeks after the company announced its shift away from stores. here to make sense of it all, we are pleased to welcome dana hull. we saw already elon musk trying to say that they are fully transparent on pricing, but this

seems confusing. dana: i think the goal is to streamline online ordering for customers. tesla says most customers want the standard rate plus, which is a little more expensive. not that it will are ordering the standard range model for a three. company that, the whole premise was a $35,000 car to a mass audience, the fact that you can no longer order that car online is suspicious. maybe it is not suspicious. maybe they are not making money on that car. but the fact it's not available online, it is weird. you have to physically go to the store or call if you want it. caroline: the model 3 standard plus will be $39,500. this after we saw the distribution numbers. this is a company that needs to make profit from these cheaper vehicles. >> the margin is on software,

autopilot, so basically what they've done is, they've made autopilot a standard feature for all cars, but not the $35,000 one. they've rolled autopilot in as a standard feature. that is where the margin is. it is very early in the second quarter and you are seeing yet another shift to the lineup. they've also introduced a lease, which is great news, but there's a caveat, which is that at the end of the three years, you can not actually buy the car. it goes into what must is calling the tesla autonomous free -- fleet. it goes into what elon musk is calling the tesla autonomous fleet. there was a lot of news in this blog post that was released last night and it is just more confusing. now they seem to be promoting the idea that they have this network of physical stores. but there saying that they're going to close a lot of them. caroline: elon musk going onto

twitter saying, other automakers change their prices constantly and substantially. we are transparent. we are consistent. he tried to talk up the competitive nature of tesla versus lyft and uber as well. trying to remind people about the autonomous nature of this vehicle and how we are all going to be sharing them basically in the future. dana: that is the big talking point of the next week or so. lyft just went public. we just filed for their ipo. tesla is having an autonomy day for investors on april 22. it reports earnings on april 24. after being somewhat quiet its autopilot roadmap, we are hearing a lot about that now. caroline: there's been a bit of backlash coming from david einhorn. we are going to be surprised by that. greenlight, the short investor in tesla, made some money on his short position. he thinks the wheels have come off. do you think there's any vindication to that claim?

dana: i guess i take a long view. your fund can do well one quarter and not the next. the fact that tesla had such poor first-quarter deliveries and seems to be fiddling with its lineup so early in the quarter begs the whole demand question. caroline: certainly does. thank you for putting it all in perspective. great reporting. the u.s. federal communications commission will auction the broadest set yet of airwaves yet in december. we are talking about the auction -- the adoption of 5g and none other than the chairman, ajit pai, about how the u.s. will move forward. later, it is known as amazon of africa. we will talk to the cofounders. this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. caroline: this is "bloomberg

technology." i'm caroline hyde in new york. in the race to 5g, the fcc will be auctioning the most spectrum yet to facilitate the move. president trump spoke about this topic earlier. he was optimistic about the u.s. and how it could dominate global competition. president trump: we cannot allow any other country to outcompete the u.s. in this powerful industry of the future. caroline: fcc chair ajit pai spoke to kevin cirilli about the plan. mr. pai: the 5g fast plan to -- is the plan to facilitate america's superiority.

a core part is to make more spectrum available for the commercial marketplace. later this year we will be , holding the biggest auction of spectrum in american history. 3400 megahertz of spectrum that will put a stamp on american leadership on 5g across the world. kevin: 3400 megahertz, what does that actually mean, especially when you look at global competitors like korea and china? mr. pai: we are very much ahead of the curve. we will be allocating more spectrum for commercial 5g than all the mobile broadband providers america has today combined. it's a huge influx of supply. we are confident carriers will use spectrum to deploy 5g. we want that to happen here because spectrum availability is a big part of the equation. kevin: which companies will be driving these auctions? mr. pai: i expect it will be some of the traditional players, but we are seeing a lot of

interest from cable companies, silicon valley companies with the use case of 5g dramatically different from 4g. all types of industries from agriculture to transportation to health care will be transformed. kevin: the internet of things. mr. pai: as the internet of things starts to develop, a lot of companies are seeing an interest. kevin: we talked about the shareholder perspective, but i think there is a lot of confusion in the consumer space to what exactly 5g is. mr. pai: most consumers are familiar with 4g. kevin: they know when their cell phone cannot get a signal. mr. pai: that is why we are bullish about 5g because it promises 100 times faster speed, much less latency and much greater capacity. we are talking about publications like virtual reality, and other types of things, some we cannot conceive today, but the consumer benefits are really massive. we want american consumers to be the first beneficiary. kevin: i find this interesting

because you are talking about public-private partnerships and investment, but there has been some signals from newt gingrich, even the president himself, that that the u.s. will become itself a telecom provider and 5g needs to be wholesale. rather than build by the private industry or the competitive market. what do you make of those signals? mr. pai: i strongly believe a market and not government is in a better position to drive innovation and investment in technology. the lesson i draw from the american leadership in 4g. we put the building blocks in place for the private sector to succeed. as a result, we saw the mobile ad economy at innovation happen in the united states. i think it is the right model. kevin: you will be with the president? does he believe that? mr. pai: we are confident that he understands that american leadership in 5g is critical and a market-based approach is the right one to promote investment and innovation.

caroline: that was fcc chair ajit pai with bloomberg's kevin cirilli. one of just three unicorns in africa. now, jumia launched its ipo this week on the new york stock exchange. shares surged more than 70% on its first day. i caught up with the cofounders and co-ceos and asked why this international company based in berlin, serving africa, with french founders decided to list in new york? >> our business is a marketplace. and here in new york, a lot of marketplaces are listed and investors are used to attaining those businesses. for us, it was a natural place where investors understood. caroline: what about from building a brand perspective? does it help? >> our consumers are in africa. for them, having one of their brands, that they use every day being used in europe, is a big -- in new york is a big deal.

, it is very important for all of our partners and jumia to be here in new york and that is something that matters to us. caroline: i'm interested in the fact you are growing quickly in terms of revenue but still lacking in profit. how much is that a focus for you? how quickly can you become profitable? will this eventually be an issue for the investor base? >> we are growing fast and have a healthy business model. that is why a lot of investors have trusted jumia over the years. they see the potential, they see the growth. they see the execution. they see the value we create for sellers and consumers. they understand the business model is very healthy. caroline: have you got a time when you might become profitable? >> we don't. we work every day with our team. caroline: paint a picture of the growth focus. is it new regions, focusing on the payment side of the business?

where will this money go to? >> if you look at our market, there are 700 million people in our countries. last year, 4 million consumers worked with jumia. we have consumers are yet to discover the benefit of using our market. we will focus on that. we will focus on continuing to build the business, create value for the users so that when they come to jumia, they see a very good selection and very good prices. they will continue to adopt the e-commerce. payment is a great avenue of growth. we have launched that in a couple of market and it is working very well. we will put resources in this very exciting opportunity for us. caroline: talking about why you have chosen new york, the investor base knows marketplaces. that means they know your competitors. who are your competitors? is it amazon, alibaba, more local rivals? >> we're the only african player doing commerce in africa that are really here across the

countries. there is no one really competing with us on the pan african level. caroline: what would you say if amazon wanted to buy you out? would you be sold? >> we'll see if that day happens. we are focusing on building value for the consumers. that is what we do. every day, we work hard to bring value to the sellers and consumers. provide a platform for the seller to the great business. regionalpportunity for consumers to save time and money. the rest, nobody can predict what will happen in this world. we hope we are raising our value and whatever happens will happen. caroline: one of your first backers was rocket internet. well-known venture backing in germany. what are the criticism levels of criticisms leveled of rocket internet is that they steal other people's business

models and take them to new countries. do you think you took someone else's business model? what was the risk was going into a new region? >> what we are doing is new in africa which is helping people buy online. other people are very used to it in other parts of the world the , very first time it was happening in africa, so that is very new. the way we had to build it was particular to africa. there was no payment. no one had ever done that before. to build an e-commerce platform, and the way to do it, we give countries really simple currencies. and that made it possible. caroline: talk about the intricacies. what are the biggest challenges you face in africa? >> africa presents some challenges when you think about how do you work with the sellers, the logistics, the delivery of packages, the payments? there are lots of areas of the business which you have to create a special african way to do it. so, the payment is what people notice first because we have 50% of the business in the big

cities and 50% in the rural areas. we have created a logistic platform to make this happen. relying on hundreds of local partners, providing them the technology which will operate their business across every city of africa. that is one of the biggest innovations we have to make this business possible. caroline: how does one get a delivery to a particular rural area of africa? a particular collection point? paint a picture for us. >> we have hundreds of logistic partners that work with our technologies. they know every region very well. our mission is to find customers to buy products. we work with our partners across the chain to get the products from the main warehouse down to the very last mile of the customer. the way to do that is two options.

it are they will receive the product to the door, a door delivery, or a network over all the countries that gives the consumers the ability to go pick up the orders. so, every consumer has two options. every consumer who has a chance to get wherever they live. -- every consumer has a chance to get delivered wherever they live. caroline: what about becoming more than just a marketplace? what about offering your own products? >> first, the focus is to build a marketplace because we want to serve the sellers. we want the sellers to have the platform for them to sell their products. every now and then, we sometimes act as a seller whenever we feel it is necessary. but we are primarily built as a marketplace. our dna is to build a service for the sellers to provide it for the consumers. we are primarily a marketplace. caroline: some of my conversation with the jumia cofounders. meanwhile, nexi, the biggest ipo in europe. $2.3 billion in its offering on the italian stock exchange.

that gives a company a valuation of the $6.4 billion. investors include bain capital and advent international. coming up, something for recently evolving crypto enthusiasts. bitcoin now at its most expensive level since before the spectacular crash. we are talking cryptos next. this is bloomberg. ♪ caroline: facebook has

nominated paypal executive peggy alford to its board. that is not the only change being made. netflix ceo reed hastings and former white house chief of staff erskine bowles will step down. they have been directors since 2011.

an election will be held at a future shareholder meeting. after hitting fresh highs in 2019, the signs of going ahead in the crypto world with an indicator now at its most overbought since hitting a record last year. when the crypto index plummeted 65%. arianna simpson, founder of autonomous partners. welcome. arianna: thank you. caroline: so, technical indicators. how much do the investors, be it retail, institutional, look at technical indicators for things like crypto? arianna: it really depends on your investment strategy. are you more of a venture type investor? are you more actively traded? i find it funny people looking at the same data and drawing widely different conclusions. on crypto twitter in particular.

i think all of that needs to be taken with a grain of salt. in general, the more important indicator is the maturation of some of the products that raise -- projects that raise a lot of capital and starting to launch. caroline: can you name some of the more interesting bellwethers? arianna: blockjack is one. they are live with over 80 applications on their network. another one that recently launched is cosmos, focused on interoperability. caroline: finally, we are getting a use case for blockchain technology. we are going to see these distributed applications come to fruition. you mentioned blockstack, which you serve as an independent board member. this has drawn attention because they are starting to launch their own money earning. .- money raising effort arianna: they are doing a reg-a

plus offering. they are the furthest along in that process. they have been working closely with the sec to make sure that hopefully their filing is approved because they want a broad base of support in terms of individual retail investors. caroline: a token sale that will get sec regulation a plus framework approval. it will be deemed a security therefore or not? arianna: yes, i believe so. caroline: what is interesting is it has rather interesting backers. one of them, a well-known academic institution, harvard. how much do you look at pension funds, endowments, institutional investors that are looking into these spaces? arianna: it is always a slow trickle to start, but i think these allocators are viewed as some of the most highly invested funds around. those typically will be at the forefront of this movement.

a number of them invested in a few funds. andreessen fund, crypto fund last year. i think this is the beginning of that process. caroline: talk to us about what the fcc is up to. everyone is waiting for the first exchange traded fund. cautiously, they are trying to accept the temperature coming from the investor base. they are trying to look for expertise when setting the regulation. they're giving crypto supporters a voice. arianna: there is definitely an active dialogue happening between a number of projects and the sec spin hub and other parts of the organization, because i do think they want input from the industry. in general, they have been kind of slow to come out with guidance but they have been working on that very actively. i expect we will see more of that in 2019. caroline: if there is a retail investor sat at home with a large chunk of change, someone who feels the basics of crypto, -- feels they understand the

basics of crypto, how do they understand which projects are making scale? is it by those looking to become sec approved with their token sales, or can be more adventurous? arianna: not investment advice for me, but i would say it depends on what they are looking to do. for most people, holding something like bitcoin will be the safest avenue. it is a highly specialized field, so i always caution people to move carefully, but at the end of the day, even people spending all of this time on this industry, it is difficult to differentiate between what is quality and not. caroline: what is needed to show the signs of maturity? arianna: we are seeing maturation also on the exchange side. that has been an area we see things like socialized losses and constant hacks. things like that you would not expect to see in an industry that has been around for as long as it has. we are starting to see a real differentiation between serious players and those that are not.

that's a necessary step. caroline: what about, there has been much talk about facebook launching its own digital currency. we don't know the name of it, but they are looking to raise money from outside investors. how much does that help you can -- that you can can transfer money from whatsapp or another competitor? arianna: facebook has massive scale, which would be a huge advantage to anyone who was hoping to enter the space. they seem to be really focused, which i think is a good thing, on moving in a real decentralized way rather than making this yet another payment option that is centralized in nature. we will see how that develops. they are being pretty hush-hush about it. caroline: great to get your inside track. still ahead, we talk strategy with china's netflix-like streaming service, iqiyi. the cto will be speaking to us next. this is bloomberg. ♪

caroline: softbank group has sold japan's biggest-ever local corporate bond. the company tapped individual investors for $4.5 billion. the ceo is turning softbank into a fully fledged investment conglomerate. he has been cutting leverage. that has not impressed rating firms. they view softbank bonds as junk. nintendo is making a push into virtual reality with a new v.r. for the switch. it will retail for about $40 and -- $80 and be compatible with games like zelda and super mario. our asia tech reporter yuji nakamura tells us how it stands out from sony or facebook. yuji: we are here in tokyo. nintendo's v.r. just came out. i have my hands on one of the first. nintendo is coming to the market about three years late, so their approach is let's make v.r. very affordable.

this starts at about $40. the way they have gone about it is it is made out of cardboard mostly. for $40, it gets you the headset. you slide this into it and you can play a basic assortment of games. in two weeks time, you can connect this headset to play super mario and zelda. that will be one of the biggest draws. this is nintendo's first come back into v.r. in 24 years. an affordable way to get into it. this is aimed at kids, families. a friendly way to get them playing v.r. they have limited most vr experiences to two, three, maybe five minutes most, so you don't sit there with a thing on your face for hours on end. it is a pick up and play kind of experience. overall, starting at $40, is the cheapest headset on the market. this is their approach into

v.r., coming in a bit late, but we will see how this goes. caroline: that is the inside track. let's talk china because a popular netflix style streaming service wants to utilize a.i. to compete with rivals such as tencent. the cto of baidu-owned iqiyi spoke to bloomberg. >> the chinese is very competitive. we have a vested a lot -- invested a lot in content. we recently checked the uses of our viewers. a.i. technology actually is very important for us to improve the efficiency where we can create content and improve the efficiency of postproduction. we utilize a.i. to push the right amount of content to the right users. it can also help our advertisers to target the right audience so it is a better impression for them. >> all of the hype these days

seems to be around the launch of 5g services around the world. how is that going to affect your business? >> because 5g, we introduced a larger bandwidth and latency. it can help us to stream better content. we had a collaboration with china unicom, 5g, streaming content to devices. we see that in the future, we think the content business will be changed and evolve. >> we have seen as the u.s.-china trade tensions escalate, some distrust about chinese tech companies. are you concerned that might affect you as well? >> actually, no. we are a technical entertainment company and we focus on the content, the user experience. we don't think the tension between the u.s. and china affects our business.

actually in the states, a lot of chinese people watch iqiyi content through the internet. it is not affected at all. >> what about the fact the chinese economy has started to slow down? do you expect that to have any impact on the business or how can technology and innovation still keep bringing users and consumers to your service as opposed to your competitors? >> actually, we are encouraged by the membership revenue increasing. very big last year. we don't see that have any effect on the economics. we have more than 72% of membership and revenue last year. every day, we are averaging more than 100,000 new members. we are picking up subscribers every day. we have to think it is still growing fast. caroline: the cto of iqiyi. that does it for this edition of "bloomberg technology." we are live streaming on

twitter. check us out, @technology. be sure to follow a global news network, tictoc, on twitter. have a great weekend. this is bloomberg. ♪ want more from your entertainment experience?

just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome.

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. announcer: this program is a paid presentation and is brought to you by dr. ho's circulation promoter. heather: i am heather smiley. we are talking about circulation. if you suffer from pain, bad circulation in your legs, pain in your hips, knees and ankles, or feet, from arthritis or sports injuries, we will meet dr. michael ho, the inventor of dr. ho's circulation promoter. a device to relax muscles, improve circulation, and relieve pain. let's welcome dr. ho. [applause]