♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." in the next hour, netflix still on fire. paid subscribers increasing 23% year-over-year in the last quarter of the year. global demand, the big driver. we will speak to someone who thinks that netflix needs to keep digging in. could netflix add gaming or could audio even be the way?

the chair of the federal communications commission steps down on the day of the inauguration. he took a controversial stance on net neutrality and leaves his successor with some thorny issues. he joins us for his exit interview. and, with president-elect biden poised to take office, what regulation awaits tech giants under a new administration? and, with the potential for more violence, what security measures are being taken at the capital and around the country? tech earnings kicking off after a favorable report after the close. we saw markets getting a boost from tech gains and small caps. walk us through the day. >> let's kick it off with netflix. you are seeing those shares surge in the post-market.

beating not only wall street estimates but even their own goals. shows like "brigerton" and "the queen's gambit" behind those moves. today, we did see the stocks index close at a record high. qualcomm, the leader in that index, also hitting a record high. in the major benchmarks, big tech outperforming once again. you see that in the nasdaq and the faang index. the top performer was microsoft. flip up the boards and you will see that microsoft and general motors both gaining quite a bit. they partnered up in a $2 billion investment round in cruze, a self-driving startup majority owned by gm. my last ticker here, the global electric and autonomous vehicles etf, rising and ending the day

at session highs, even as janet yellen in her congressional testimony talks about ev as an arena where they can both compete. to talk about the u.s. competing in that space, extremely important. the big story for tuesday was absolutely those netflix gains. emily: think you so much for that round up. we will talk about those gains now. netflix ending its biggest year in company history with a bang, adding more customers than expected and saying it no longer needs to borrow money to continue to build his entertainment empire. the company past the 200 million subscriber mark for the first time. with $8.2 billion in cash, they said they no longer need external financing.

obviously, netflix surpassing expectations yet again. what are you reading between the lines here? >> i said this last time we spoke about it, netflix has done better than i think many people thought. one thing, the competition between disney, at&t, and others. two, international expansion, something they invested heavily in a few years ago. lastly, not as disrupted as others. those things have helped it propel, as well as the macro growth over the last year. emily: netflix is saying it is going to deliver more than 70 movies alone this year. that is not counting television or other titles. at a time when production has been stalled, restarting in fits and starts for so long?

>> i think it is a huge advantage in terms of their core competency, which is really a distribution and production company for streaming video content. their core, they have shown they can really flex the muscles and they are investing the money they have put to work over the past few years. i think on the flipside, the concern i would have is that netflix came in by being the company that was innovative and forward-looking, took blockbuster pretty much out of business. the last 2, 3 years, they are competing against these multinational media companies that have multiple revenue streams. not just video, but they have gaming, audio, operating platforms. is netflix becoming so focused, can they be kind of outflanked

by these media companies that have much more diverse offerings, podcasting, audio? making investments or acquisitions and innovate internally. emily: it is an interesting case you make, but i think investors would push back, saying 70-plus movies in a single year, isn't that pretty radical? >> blockbuster may have said in the late 1990's that they bought 10,000 titles that year. i don't think just doing more of your core competency can be considered innovation. at the same time, no one can debate how well they have been able to execute. when many people thought they were overspending, they have shown that that has kind of been their savior in helping them fend off competition. who am i to doubt their

strategy? i am just saying, in their ability to engage and monetize the 200,000 subscribers they have, they are now going after a limited portion of the connected media pie. a lot of the growth in terms of macro over the last 18 months has been in audio even more so than connected tv. most people believe that over the next 3-4 years, the majority of the growth will be gaming. these are avenues that the disney, at&t, sony, and others are legitimate players in, and netflix is not. emily: what do you think is most likely? how likely is it that they introduce advertising or get into gaming or get into audio? >> they have said that they don't -- in the foreseeable

future. if you look at the success of things like pluto tv, all of which have been acquired by huge media companies, there is -- and certain international markets as well, the xbox subscription-based solution is just not as viable. when you look at some of netflix's numbers, certain markets where they are not getting massive growth. i do think, particularly with their huge library could be a huge opportunity. they had more content available for streaming than anybody else, even with the shows and everything coming out, there are massive libraries coming in from nbc universal, disney, and others. they had better distribution. the netflix app available on more platforms.

and then, they had cheaper pricing compared to cable. so, i just think some of the core that they have are not sustainable. emily: all right, andre swanson, thanks so much for giving it to us straight. we will be listening into the call. they said they have some exciting news about "bridgerton" coming up later this week. coming up, his departure would leave the commission at a 2-2 deadlock. fcc chair ajit pai joins us next about what is next for him and the federal communications commission. and, we are monitoring the start of a solemn event at the lincoln memorial in washington, d.c. a memorial for the 400,000

americans who have died of covid-19. it is expected to be a moment of silence later this hour. the service will be marked by 400 lights at the reflecting pool. tomorrow, president-elect biden will take the presidential oath of office. he long pledged 100 million vaccines to mark his first 100 days in office. we will leave you with this shot of the washington monument and sunset. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together.

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emily: the united states is just a day away from having a new administration under president-elect joe biden. one of the many changes that will come with it is the appointment of a new head of the fcc as chair ajit pai makes his departure.

he joins us now to discuss what is next for him and the agency in a sort of exit interview. thank you so much for joining us. it has been a pleasure speaking with you over the years. you are chair for just a few more hours. what is next for you after that? ajit: i still will have to figure out what the next adventure is. i am hopeful it will be as stimulating and rewarding as the past four years have been. it has been the ride of a lifetime in his position and i cannot wait to see what comes next. emily: certainly, the new fcc or the reconstituted fcc will be taking on new issues, including section 230. what do you think will be the big issues that will define the next tenure of the fcc? ajit: our work to close the

digital divide, getting more americans connected to the internet, our work to promote american leadership in 5g, including finishing last week the largest spectrum auction in american history. working with consumers including robo calls and establishing 988 as a number for suicide prevention and health. i am hopeful that the fcc will as well. as i told our team, i will be rooting for them from afar because the next fcc's success will be america of trieste success. emily: he decided not to move forward with a proposal to limit the liability shield and take action on section 230. it has been quite an eventful couple of weeks. what is your reaction to facebook suspending the president indefinitely, to twitter banning the president permanently?

ajit: i think it highlights two issues. the first is transparency. in 2017, i made a speech where i pointed out that a lot of these platforms do not have any transparency in making decisions on what users can see, can say. the second is consistency. if people are going to make these decisions, why did they make some decisions and not apply that principles elsewhere? i pointed out last summer, why does the supreme leader of iran get to tweet out threats to the israeli state among others and not have any consequences in terms of the terms of service? emily: that said, you said there is bipartisan consensus for some change to section 230. what changes do you suggest? ajit: president-elect biden has campaigned repeatedly on the full repeal of section 230. i think many in congress are

looking for more tailored revisions. what is the proper scope of the immunity provision? that is something the next congress may take a look at. i think it is going to be important for them to go through the legislative process. hold hearings, call witnesses, engage in deliberations. there are obviously a lot of puts and takes, there could be some unintended consequences. so they will have to think through carefully what those changes should be. emily: how far do you think the government should go when it comes to regulating private companies even though these companies have huge global influence and impact? they are still private companies. ajit: i have consistently said that under current law, the fcc does not have the authority to directly regulate these companies. but, i have said that everybody in the internet economy, it could be an internet service provider or a tech giant, everyone should operate under similar regulations in terms of transparency or things like

that. i think we had those rules of the road, a lot of uncertain the in this debate could simply vanish. as things stand now, we do not have the transparency that a lot of consumers expect and that is generating a lot of questions about how these decisions are made here and around the world. emily: your decision about net neutrality is probably the most controversial and maybe challenging decision that you ever made. a new administration, a new fcc, might try to undo that. what are your biggest concerns when it comes to net neutrality in particular?

ajit: when we made it, there were all kinds of hyperbolic predictions from social media groups, tech companies, politicians, that you will get the internet one word at a time, you will have to pay $15 per month in order to tweet. fast-forward three years, the internet is twice as fast in terms of broadband, wireless speeds have gone up dramatically. millions of americans have access to the internet than ever before. advocates who are strongly opposed to our decision because they feared a lot of network operators censor speech they did not like are now turning around and demanding that operators censor speech that they don't like. i think it will have to be reconciled. to me, it should be reconciled by congress putting on the page the basic principles of an open internet that we all agree on. no blocking, no throttling. i have just described in 10 seconds a bill that should pass 99-1 in the senate.

but will see how things shake out. emily: color of change is urging president-elect biden to choose jeffrey starks to be your successor. any insight on who your next successor should be and, do you have any advice for that person? ajit: i don't know who it will be. i have course have tremendous esteem for commissioner starks. not only have we worked together establishing things likely early career staff diversity initiative, but also he hails from my home state of kansas and he is a chiefs fan. i think there would be some nice continuity there. but more seriously, however the next chair is, the advice i would give is to chart the course that you want to chart in terms of the public interest, and work very hard to leverage the fcc's best asset, which is its staff. i truly believe that these issues are nonpartisan in nature. it is a challenging job but

there are enormous rewards in terms of delivering for the american people. i hope the next year will be able to do that. emily: it could be quite a proud moment for kansas. fcc chair ajit pai, congratulations on wrapping up your tenure and thank you for sharing your thoughts. coming up, relying on a russian owned web service after being ousted by amazon, apple, and google. and, president-elect biden is participating in an event on the national mall this evening to remember the 400,000 americans who died from covid-19. there are 400 lights that will be featured in the reflecting pool near the lincoln memorial. a moment of silence will be coming up at the bottom of the hour. this is bloomberg. ♪ emily: parler, the social

network popular with the alt-right and conspiracy theorists, reappeared with the help of a russian owned web security service. the website was dropped by big tech companies after it was used to incite violence at the u.s. capitol. for more, i want to bring in sarah frier. parler is not back but they appear to have a new web hosting service, which would take the place of amazon web services? sarah: right. basically, they are able to get their website functioning. they are using the same -- following the charlottesville

riot. it is also provided by a russian firm. so, they are not fully functional. if you go to the website, it is not like you get the full social network back. it will be a while before we see maybe similar levels of activity. the thing is that they are not back in the apple app store or the google app store, and this is really where you build an audience if you are to build a social network. you are not going to do it so well just with a website. emily: ok. has apple or google given any update as to whether parler can return? i know they said they have to have better moderation policies, better systems in place. sarah: i don't think they are going to entertain the possibility until after the inauguration. of course, you would need that moderation.

but if parler implements those stricter content policies and tries to make sure no one is instigating violence or denying the results of the election or anything like that, then are they still the free-speech network that is drying all these conservatives who are frustrated with twitter and facebook? that was their main selling point. i think they are still in a really tough spot despite the fact they have been able to get their website up. emily: as we head into inauguration, what is the latest you are hearing from facebook and twitter about how they are keeping an eye out about potential violence and gatherings planned tomorrow? sarah: they are playing a game of whack-a-mole. facebook says they are taking down posts that say stop the steel. they are trying to take down any militant groups. of course, you still see them pop-up.

i think they are going to have to be extremely vigilant through tomorrow and maybe even beyond. emily: all right, we are all on guard and i know you are watching both networks closely. thank you for that update. all right, coming up, america, wednesday, will welcome a new president into the white house as the inauguration is set in washington. hopefully a peaceful transition of power ahead. we will preview what is to come. this is bloomberg. ♪ ♪

emily: welcome back to "bloomberg technology." i am emily chang in san francisco. we are monitoring the memorial in washington, d.c. honoring those lost to covid-19. we know this is one of the things president-elect biden wanted to do as he takes office. you are looking at shots of the washington monument just after sunset over the lincoln memorial

reflecting pool. 400 lights will be illuminated to remember the 400,000 americans who have died as a result of covid-19. the president elect awaits a big test as he prepares to take office. he has promised 100 million vaccines to mark his first 100 days in office. we know that vaccines have been in short supply, cities across the country clamoring for more, the process difficult, and president-elect biden has a big task ahead. we did hear from president trump earlier today, as he prepares to leave office. this was a video message that he

released, where he acknowledged there would be a new administration, but never said president biden's name by name. i want to take a listen to the sound bite. actually, we are going to head back to joe biden, speaking at the washington monument. president-elect biden: you know, from our family experience, what you do, courage, the pain you absorb for others. thank you. thank you. your eminence, cardinal gregory, yolanda adams, to heal, we must

remember, it is hard sometimes to remember, but that is how we heal. it is important to do that as a nation. that is why we are here today, between sundown and dusk, let us shine the lights in the darkness along the sacred pool of reflection and remember all whom we lost. ♪ ? -- >> ♪ i've heard there was a

secret chord that david played, and it pleased the lord but you dont really care for music, do you? it goes like this, the fourth, the fifth the minor falls, the major lifts the baffled king composing hallelujah hallelujah, hallelujah hallelujah, hallelujah well, maybe there's a god above as for me all i've ever learned from love a♪a♪ emily: president-elect joe biden and his wife jillbiden remember those lost to covid-19. this is one of the first things president-elect joe biden wanted to do before he took office. he has a big test ahead to make

sure 100 million vaccines are delivered to americans in his first 100 days in office. that is his promise. how will he deliver? president trump released a farewell address earlier today. let's listen. pres. trump: this week, we inaugurate a new administration and pray for its success keeping america safe and prosperous. we extend our best wishes, and we also want them to have luck. emily: president trump will not attend tomorrow's inauguration, but vice president mike pence said he will be there. he struck a conciliatory tone in that message. let's listen to more.

[no audio] a striking shot of washington, d.c. at sunset. i want to bring in our guest. she has been following the president-elect. emily, will tomorrow's transition of power be a peaceful one?

emily: you know, a lot of people in this city are preparing for that. we have 25,000 national guard troops here. the city has been locked down, military vehicles everywhere you look. there is barbed wire around the area. all precautions are being taken to make sure tomorrow's inauguration goes smoothly, but we have been hearing from online groups and individuals who say they were motivated by january 6 and see tomorrow as around number two. emily: are we 100% sure that president trump will not have a change of heart and show up tomorrow? emily: i think anyone who has tried to guess him over the years has been on the losing side of that. tomorrow morning, president trump plans to go to mar-a-lago in florida, where he plans to reside. however, mike pence plans to be at the inauguration for joe biden.

emily: let's talk about the state of security at the capitol. we have seen the footage of the national guard on capitol hill, it is obviously a big day, warnings about violence. we do not know where the threats stand even the last days to get control of it. what can you tell us about the state of security right now in washington? emily: this is really unlike any other inauguration we have seen before. we are used to levels of security in washington, d.c., but this is different. 25,000 national guard troops is five times as we currently have in afghanistan, iraq. a lot of lawmakers were thrown off guard when the pro-trump bob seized the capital.

there has been heightened security, and bolstered up. the city is taking precautions to make sure tomorrow is safe. lots of the city is closed down, metro stops, areas inaccessible that will remain so for all of tomorrow. emily: emily wilkins, all watching january 20. we will check in with you and be following the events tomorrow. it has been a big day in the world of electric cars. cruise raising $2 billion from general motors and microsoft, the deal putting the company closer to a commercial robo taxi service. another company raised additional funding for an eye watering valuation.

let's start with the gm. give us some analysis. >> gm shares up big. the company is positioning itself for a future. they have invested heavily in electric vehicles that consumers will one day purchase. it will be something like 27 billion dollars worth of investment across the two companies. if you think about waymo and alphabet, they have a cloud and financial relationship. the microsoft deal gives access to a platform. autonomous vehicles are computers on wheels. the ambition is to operate a robo taxi service. all of that takes management, sending him to and from the

right place, making sure it can be hailed using a mobile app. that is quite so much importance has been given to this deal. emily: how did this accelerate the coming change in the hierarchy of electric vehicles? it seems to be tesla and everyone else. does this give a new entrance, significantly more dry powder, or it will be a while? ed: it gives the cash injection. you need a lot of data and engineering to bring it to life. cruise said they would have a robo taxi in 2019, yet here i am in 2021, and i don't see it. we are still some ways away, and a big part of that is regulation.

it is dependent on regulators giving the green light to deploy in the real world. that is what these companies are working on. until they get regulatory approval, and everyday consumer won't be getting one on public roads. emily: thank you for that update. we will stay in close touch with your reporting on this. coming up, salaries, salaries, salaries. tech jobs dominate, and companies are not afraid to dangle big money. we will look at that next. this is bloomberg. ♪ emily: against the backdrop of

widespread economic disruption, the tech sector is not as impacted. in a recent study, compensation was found to be king. 63% said they would accept a role elsewhere for higher pay. we are joined now by our guest. tracy, thank you for joining us. what are the trends you see in 2021? tracy: it is certainly a dynamic and fluid labor force, but the pandemic has absolutely

accelerated digital transformation across every industry out there, and we are seeing a massive increase for people and the ability to be agile and those workplaces. the other thing that has come along with digital transformation is the ability to work from home. because of that, it has proven to increase productivity. more than 55% have seen an increase in productivity with work from home. because of that increase in productivity, and because we have found many roles can be done from home that we thought could not, 76% of surveyed people by one study said they want to stay in a hybrid model, going back to the office full-time is not something a majority of workers want.

what does that mean for the tech sector? the companies that are thriving and fluid have the infrastructure, ability, and tools for their employees to work from home. emily: you have been looking closely at salaries. what are you seeing? how much does the money matter these days? tracy: cash is king. there are some shifts because of this. number one, employees now have a wider pool of job opportunities. employers now have a wider net of the talent pool that they might have closed off previously. you have heard about the bifurcated economy? we are seeing 2.5% to 3% increases in salaries for these jobs.

the downside is the low-wage jobs have disappeared and will never come back. for the majority of these high demand jobs, salaries are going up and people are expecting it. the other thing are the benefits, they are now widely in becoming more common, one of the largest financial institutions is offering $100 a day in childcare reimbursement, the ability to have a flexible schedule, economic chairs and monitors so that you can work from home. so in addition to those salary increases, you are seeing creative benefits provided to employees to work in this new era. emily: right, this is totally uncharted territory.

a lot of companies are supportive. if you want to work elsewhere, you can. we will support you. you found workers have anxiety, despite the fact their boss has said it will all be ok. obviously were not having the same number of check ins that we would if we sell people in the office, so how do we address that? traci: uncertain times outside our work lives exacerbate that. employee engagement was at an all-time high pre-covid. it was one of the most robust unemployment eras we had seen. the tools that allow for open communication, almost every

single industry is doing virtual interviewing, virtual job fairs, happy hours, so it comes back to the original discussion about the technology, the robustness of it. they are using it to get the work done and increase satisfaction and engagement of employees and to people feel comfortable. emily: thank you so much for sharing your outlook with us. we will be watching. coming up, netflix results. and subscriber growth, the focus upon original content is next. this is bloomberg. ♪ emily: netflix out with a

blockbuster earnings report, the latest results pushing total

subscribers above 200 million, also announcing free cash flow could rise to breakeven this year. joining us to discuss is our guest. that is significant, because netflix has spent a lot of money making this content and it seems to be paying off. what are the highlights for you? brian: i thought some of the spending, it was a stunning amount of money. we know they will grow their subscribers. it is a question of how much they will drive the industry in this arms race that spending on content. emily: one person joined us earlier, and he thinks netflix has not done anything radical --

sure, they are pushing out content, but since the original bet on original content, they have not ventured into new lines of business. he is suggesting other areas that netflix said they would not do. what is your take on that? brian: i still disagree on that. it has managed to build a robust lineup of content. they account for 10% of viewing in the u.s., 10%, that crushes anything blockbuster ever did. emily: that is incredible, agreed. who do you think are the most threatening competitors? netflix has said we love competition. who are you watching out for?

brian: it is really how much do they want to spend on original content. viacom, if they chose to spend $16 billion, they could do netflix levels, but the reality is most groups won't. when warner media announced the arrangement with hbo, it was a big deal. that makes him a seat at the table. i think you need to see him spending tens of billions of dollars on content, and if they do, then that -- emily: what are you watching for when it comes to the streaming wars this year? brian: that spending metric is key. comcast put a budget out there. will want to be a player?

will at&t supported a money-losing proposition? will those things happen? that is what i am looking for. emily: right, will there be consolidation, because they can't all survive at this rate. it is always good to have you on the show. thank you for stopping by. that does it for this edition of "bloomberg technology." bloomberg daybreak: asia is next. tomorrow, the inauguration as joe biden takes office. i am emily chang. ♪

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg l.p., its affiliates or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. ♪ >> the california gold rush is considered to be one of the most impactful events to affect america's young economy during its first 100 years and it has certainly had a long lasting impression in numismatic history, as well. the people of california soon needed a way to standardize the value of the new gold. so, they set up assayer's offices.