announcer: from the heart of where innovation, money and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, a breakout year for crypto. that is how the coinbase coo emily choi described 2021. but is a crypto winter ahead? i will ask her in an exclusive interview, coming up. plus, she's been a key exec at

xiaomi. now hugo barra wants you to test for covid in your new home. we will talk about his new fda-aapproved pcr-quality home test. and misinformation has already made its way to the metaverse. could virtual worlds be harder to police than social media? we will discuss. all that in a moment. at first, it was a big day for news from the fed. ed ludlow here with more. take it away. ed: final fed meeting of the year. the stage is set for 2022, the meeting signaling three quarter-point hikes in 2022. and the fed is also going to double the pace of its tapering to $30 billion a month. the gap between the end of tapering and left off seems much narrower than it did perhaps a few months ago. this is a hawkish fed. mr. director, bring up the

market on the board. you can see green on the screen. equity markets took a few moments to find their feet following the fed meeting. broadly a relief rally across u.s. equities. a lot of that in technology stocks interesting to get our heads around, the outlook for higher rates. the nasdaq 100 up 2.4%. some of those mega caps doing well. the philadelphia semi conductor index more than 3.5%. there were some specific names. a lot of the messaging around the fed was, yes, we will fight inflation, but the economy is strong. that seemed to give equity investors confidence. you see names like apple nvidia, , microsoft, all these megacap tech stocks that were positive when the fed announced its rate policy jumping. we have breaking news after the market closed. apple's return to office policy is, quote, "yet to be determined." this has been the theme in silicon valley, when do we get people back into offices?

i want to think about that jump and bring up nvidia. this is the drama of wednesday afternoon. you know i'll love drama. the federal reserve in the meeting, we were negative just after the decision hit, yet by the close of play wednesday we are up 7.5%. this is a bullish market in response to a hawkish fed. emily: ed, thanks so much. again, had set the date to -- again apple had set the date , to return to work for february 1. now they are saying it is yet to be determined. the world of crypto today's fed , also paying attention to today's fed meeting. a jump in bitcoin after news of a coming rate hike. i spoke earlier with the coinbase president and coo about the crypto roller coaster and whether we are riding into a crypto winter, at the bloomberg technology summit. >> we don't make any predictions about winters or summers. what i will tell you is anybody who disproportionately benefits from crypto tends to ride it out

on the long term and be hodlers throughout the ups and downs. it is not for the faint of heart. the thing with the winters is the o.g.'s in the space love the winters. like brian m strong, he loves the winter. he loves the winter. the reason is, frankly, the fakers get out of the space, the builders can focus without all the crazy hype. emily: the fakers, ouch. [laughter] emilie: in whatever the next winter is, there will be companies that talk a big game about crypto, but then pull out. and that's great, because it means that the mission oriented companies and builders will stick through it and get disproportionate value as crypto grows. for coinbase, the thing i learned is that we took advantage of these downturns term by the foundation for our prime brokerage. we bought the foundation for us to be the largest crypto custodian in the world. so we tend to double down during

those times when everyone else is fearful. emily: talk a little bit about how crypto winters work. a lot of new investors are here, a flood of new investors. they get scared and go away. how would you describe the cycle? emilie: i would describe it as basically every cycle of crypto there has been a new high, then there is a low. and with that low, there is actually a higher trough. so if you look at it on a short-term basis, what happens is, it looks crazy, then if you look at the long-term, it smooths out and creates this higher peak every time. and so, you know, it is just one of those things where you have to truly believe in the idea of a long-term. if you stick through it, it is great. if you are a short-term investor, it is probably not a great thing. emily: last week your cfo said on capitol hill that coinbase now stores about 12% of the world's crypto assets. that is huge.

how much bigger can coinbase become? and how fast? emilie: i think we can become bigger and bigger and bigger. i think that we have opportunities on multiple fronts of the business to become bigger and bigger and bigger, and i think the 12% is representative of the trust we have. and this goes to the sabo acquisition i was mentioning. we bought that because that was a unique asset. doubling down on the store of crypto that this custodian had accumulated over time, and that helped us create the foundation to continue to build coinbase custody. that 12% number conveys the trust that both our retail and institutional investors have in coinbase. emily: it seems like investors are paying attention to crypto, but there is no broad agreement how crypto should be regulated. what was your take away from the hearing? emilie: i was optimistic. if you heard the tone and tenor,

it was almost an acknowledgment that the u.s. is still behind the times in terms of approving a bitcoin etf, in terms of the innovation starting to go offshore. i felt like it was this of knowledge meant that we need to make sure innovation happens in the united states. with any of these new technologies that are not quite fully understood, you are going to have descendant voices, you will have -- dissonant voices, you will have people who don't understand it. what made me really happy was these lawmakers wanted to learn more and embrace it. emily: what can and should regulations look like? emilie: we just want one regulator. we don't want a new regulator, say, maybe if we could, but maybe regulator so we can have one much more clarity about the whole cradle-to-grave activities that one uses with crypto. that is what we are asking for. right now there is no clarity. have more than 50 regulators

alone in the u.s.. we can navigate that, we embrace it, we have always leaned into regulatory. but for the cryptosystem to thrive, we need more transparency and clarity. emily: there were pricing glitches on coinbase yesterday that showed astronomical prices for a time. some users thought they hit the jackpot. what caused that? emilie: we are dependent upon another provider for data. there was a glitch. it did not cause anything than the superficial thing you saw with the pricing. i think one of the things that is kind of indicative of an emerging industry, we are still building infrastructure to make sure this stuff scale up of right way, and when we have providers that have those glitches, we will be impacted. emily: these coaches and outages happen frequently. what safeguards do you have to prevent them, and what kind of infrastructure do you imagine building over the long-term?

emilie: crypto is always on. we have literally never seen the type of technology scaling that we would need to do, given the number of users and requests per second that we get. we have these new milestones every week where, ok, this was the big miscarry audacious goal not long ago, just flew through that. we embrace the challenge. we are invested in making sure our infrastructure scales faster and creates more reliability. i think for us as we grow through this, and we are loading up the infrastructure team and all of that, i think the big thing is just making sure that we communicate very clearly with customers about what is happening so they are not surprised. emily: what do you say to customers who wonder, is my money safe with you, or is my money safe in crypto? emilie: this is the bedrock of the company that was built, which is security, safety, ease of use.

we never had a hack on the system. it is something that we doubled down on security every year. we are always on top of every new technology that exists in the security space, and i feel confident about where we are on that. emily: how do you deliver crypto if there is no internet? half the world is still not connected. how do you think about that question, especially when you think about, how do we get more people of color, more women into crypto? twice as many more men than women on crypto. emilie: in a world where you have a mobile phone, you basically have the equivalent of a bank in your pocket now. we want to make things like crypto available to people who have been historically underserved. that is the cool thing about crypto, it seasonal color or gender. if you want to learn about crypto and get into the crypto economy, you basically just have to hustle and get in the space and get involved. i think that is the coolest

part. emily: you can catch more of my interview with coinbase's emilie choi from the bloomberg tech summit, including her thoughts on the metaverse and much more on bloomberg.com. a pivotal day in the fraud trial of theranos founder elizabeth holmes. we are nearly 100 days since the trial began. closing arguments are set to begin thursday and will last until friday, when the jury takes the case. the 37-year-old holmes faces up to 20 years in prison if convicted on charges she deceived investors about and patients about theranos' blood testing capabilities. coming up, a new dcr-quality covid test from the comfort of your home. we speak exclusively with the diagnostics company that wants to make home testing as accessible as smartphones. next. this is bloomberg. ♪

[bell tolling] emily: these are live pictures where a funeral bell is ringing 800 times in honor of the 800,000 americans who have died so far from covid-19. and as the pandemic continues to grip the world and the omicron variant is spreading fast, more measures are needed to slow the spread. the consumer health care diagnostics company "detect" is releasing a new at-home covid test with pcr quality. once an executive at google, he the ceo joins me now. great to have you back with us in your new role. you launched this test today. talk to us about the first day of sales and the reaction so far.

hugo: hi, emily. it is great to see you again. we have been live today on our e-commerce shop, selling the covid-19 test, which is the most affordable pcr quality test in the market today. we are selling it for $49. it gives you essentially the equivalent of a pcr lab test in one hour at home. we just started selling today. we do have quite a bit of inventory, so we don't expect to sell out or anything. it's coming at a time of urgent need. you just highlighted it in your opening remarks here. we have hit the incredibly sad mark of 800,000 deaths in the u.s. alone, heading into a essentially scary mark of one million deaths. sadly, i think we may be headed into a perfect storm in this holiday season with the omicron variant approaching.

dr. fauci said this week, the likelihood of breakthrough infections is three times higher with omicron and it was with the delta variant. obviously, people will be traveling. we are concerned and trying to participate in providing solutions to people during the pandemic so folks can gather and travel with a bit more peace of mind. emily: a lot of companies, schools, airports, they want a pcr result. you say this is pcr quality, but doesn't it have to be done in a lab? hugo: it is a molecular test. most places that require a test for inbound travel require a molecular test. for example, canada, the u.k., most european countries require a molecular test. we are a molecular test which is

pcr-like in its quality. what we are doing, just to explain what a molecular test is, is we look for the genetic material of the virus in that sample and we amplify that many , many, many times so that we can detect its presence much earlier than you would with what is called an antigen test, the commonly known rapid tests on the market. with a pcr-quality test like ours, we are at least 50% more sensitive than antigen tests. we can detect the virus much earlier. this is why airlines and some of these markets that require testing well inbound, say we need a molecular test, of which pcr is one type. we are another type that offers the same level of sensitivity or accuracy.

emily: now, you have had high-level jobs at facebook, google, almost exclusively focused on mobile phones. and you say you want at-home testing to be as accessible as smartphones. why use that comparison? hugo: we use that comparison because it is what i truly believe in. i think the next major wave in consumer innovation is going to point us to health care. i would have probably said the same with a medium level of confidence two years ago, if you ask me, because i have an studying this for a while. what happened in this pandemic was a dramatic acceleration toward everything we were going to do already. we have seen telehealth taking off tremendously. regulatory approval for telehealth consultations have now happened pretty much all over the world. the progress and prescriptions and delivery of drugs, and so

forth. what we haven't done yet is that thing in the middle, where you just need an answer, you need to understand what is happening inside your body before your provider can help you make a decision on treatment. that is precisely the gap we are trying to focus on here, is, can we help dramatically accelerate what is known as diagnostics in the world today? we are starting with infectious disease detection, which is a critical area where there is such a tremendous information gap, as we have seen with this pandemic. the lack of information solutions. you want to know, do i have this virus or not? am i at risk of transmitting it to a loved one or not? this information gap is diagnostics world really needs to address, and we are focusing on that. emily: speaking of information, you led oculus's vr division. i am sure you are following facebook's pivot to the metaverse.

my colleagues just reported on vaccine misinformation making it to a virtual conference in lisbon. do you think information will be even harder to police in the virtual world, in the metaverse, than it is on social media? hugo: i read about this incident, but i did not watch, so i don't know specifics about it. i might have a bit of a different point of view as it relates to metaverse. i think the technology industry should take a big step back. first of all, how we talk about metaverse. we talk about metaverse as being this kind of dark future in 10 or 20 years where somehow people are going to be stuck in their homes vr headset on in some , perhaps with a vr headset on in some simulated virtual world and end hours and hours in this game-like environment. well this may happen in 10 or 20

years in a small segment of the population essentially the gamer types, , what most people will experience that they will call metaverse is completely different. it is the idea of overlaying virtual things onto your physical world. right, the fact that you will be able to walk around the world and see augmented enriched worlds and be able to socialize communicate or socialize or entertain and have fun because you have virtual objects or a virtual presence with you -- of course, you are wearing augmented reality glasses. that is a much more positive outlook for the future. that to me is a more promising vision for the metaverse. so i would reframe it to begin with. of course, when we do get there, there will be problems we have to solve. and there will be new privacy frameworks that we will have to adopt.

the important thing to understand is, this is 10 or 20 years away. so we have time. we have awareness meaning we , know this stuff could be a problem, so let's get to work on it. but let's do it with a positive outlook for the future. i think this darker vision that we ended up painting over the last few months. emily: hugo, we will have to leave it there, but conversations to continue in the future. ceo of detect, hugo barra. thank you so much. coming up,, companies scrambling to defend against a newly discovered software flaw which could leave systems vulnerable to attacks from china and other governments, that is next. this is bloomberg. ♪

emily: while the computing world is struggling to contain a major vulnerability, a very

in the very common piece of open source code, this leaves hundreds of millions of systems vulnerable to attack, with the head of the u.s. government cybersecurity agency even calling it among the biggest threats she has seen in her career. let's get more with bloombergs william turton. why is this one so scary? william: the log4j vulnerability is like pandora's box. everything is insecure because so many things uses open source library, and also, it is so easy to exploit if you are a hacker looking to take advantage of it. and we are seeing exactly that, all sorts of hackers trying to use this vulnerability to get into all types of systems. now, we haven't seen any major hacks yet, but the possibilities are endless. getting it fixed will take months, if not years. emily: but what are the biggest fears that there would be major hacks coming from nationstates or particularly pernicious groups?

william: well, one of the tech most incredible things about this tech is you don't have to be a skilled nationstate hacker in order to use this hack. it is about as simple as it gets. that is why so many people are freaked out. the real question is, can people patch their systems and find all the instances in their environment where they use log4j and patch it before it is exploited? emily: all right, william turton , thank you for the update, certainly a vulnerability we will follow. we will have much more coming up after this quick break. what 2022 holds for startups, vc's, and valuations. we are going to speak with our next guest about his outlook and the impact the fed might have on his investing decisions. that is next. this is bloomberg. ♪

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emily: welcome back to "bloomberg technology." i am emily chang in san francisco. let's get back to the markets with ed ludlow. what are you watching. ed: let's stay with the fed. three rate hikes in 2022, doubling the pace of tapering to $30 billion a month, finishing that program sooner than we expected. it was interesting to follow cryptocurrencies. let's bring up bitcoin. we have been talking about what inflation a's. -- what bitcoin is.

is it an inflation hedge? is it an asset haven? bitcoin behaved very much like a risk asset. this was around the time of the fed decision, 2:00 p.m. eastern time. we are up beyond $48,000. near $49,000. earlier in the session, we were down near $47,000. so it is moving in correlation with those stocks. it is a big question, one that was asked to the fed chair about the risks from cryptocurrencies. take a listen. chair powell: the concerns are not so much current financial stability concerns. i, of course, would support the views expressed in the president's working group report on stablecoin. stablecoin can be an efficient consumer-serving part of the financial system if they are properly regulated. and right now they aren't. ed: there are two separate things here, one is the interaction of cryptocurrencies with monetary policy, but also the fed's other role. how does it view cryptocurrencies?

it was interesting when the conversation came up. looking at the bloomberg galaxy crypto index, part of the discussion has been that central bank stimulus has propped up asset prices, including cryptocurrencies. this index is up almost 4% by the end of wednesday's session. also, crypto-related stocks in on the action as well. a look at some of the big moves -- coinbase up. and microstrategy's all higher after the fed meeting. emily: thank you very much. all right, pandemic-related monetary policy is coming to an end, with the fed indicating it will be making aggressive moves in response to rising inflation. i want to talk about how this could impact the world of venture capital with benchmark partner's eric vishria. great to have you back on the show. how closely are you following what is happening with the fed and what we expect to happen with inflation, given you are making early-stage bets, but have to be thinking also about the macro picture? eric: i follow it like anybody does and have no particular expertise on it.

i think that stage that we are investing, which is typically under five people or 10 people, very early stages, you have to have a decade-long view of what will happen. since macro is impossible to predict in 10 years -- since macro is day-to-day, it is definitely impossible to predict in 10 years. the view is, is this going to be a good company over time? if it works out, most of the rest of it will take care of itself. emily: what is your outlook on the smaller-bigger picture when it comes to startups and valuations into next year? we referred a lot of talk that things are bubbly things are , getting expensive. would you agree, and are valuations going to come down? eric: there has been an interesting period that way, where if you look at all-time highs -- look at recent public market companies compared to their all-time highs, it has definitely come down.

but then if you look back six or nine months, they are up from those levels. so i think the reality is probably, we got a little bit ahead of ourselves in late summer, early fall, and everything is coming back down. the public and private markets interact in a kind of unexplainable but weird laggy way, where sometimes it takes a few months for the public markets too, if they correct, for those valuations to trickle into private markets. these again, the nuances don't matter that much in the sense that, at the state that we try to invest in, if you are investing into a company $100 million, $200 million, if it ends up being a $5 billion or $10 billion or $15 billion company, it doesn't really matter that much. and if it doesn't work, it also doesn't really matter. some of it is just the flavor of the day and not worth worrying about.

emily: i spoke with garty tan yesterday and he had some advice, really more of a warning for startups, saying they should get those term sheets signed pronto. take a quick listen. [laughs] >> you have to keep your company alive and properly capitalized. and the big benefit of doing that is if you can have a large warchest going into recession, that allows you to build your product, your start up your go to market 1000 times better. in those hard times are the moments where the next airbnb is born. emily: some of the commentary on that that he used the r word, which is very scary. you know, do you see that in the future? and would you agree that startups should sign those term sheets now? eric: eventually we will have a recession. whether that happens next month or next year or three years from now, i have no idea.

i tried not to worry about it. i totally agree with his overall advice, which is for a company , the number one thing you have to do is stay alive to have a shot to do anything else. if that requires capital, go get that capital. whether you sign the term sheet in the next two weeks or next four weeks probably does not matter that much, but i think the overall advice of, get the u need to build the business, is critical. emily: we are looking at some of benchmark's portfolio companies. a couple on there, confluent and amplitude were both your first investments at benchmark. they have both now gone public. they both had big debuts. i was looking at amplitude shares, which are lagging from their high. still think that is a good bet now that it is out of the benchmark fold? eric: i think the great thing

about all the companies you put up is that they are all really quality companies. i try not to worry about what the stock price does on a day to day basis. i think it is just a good way to give yourself an ulcer and not something that i can really control. but i think all those companies that you showed our great companies that we have been partnering with for a long time. what makes me most excited is i think they can all grow very quickly for the next decade-plus. they have tons of market in front of them, a great management team and leadership. that will build a lot of value over time, whether the stock market realizes it tomorrow or next week, i don't know, but that longer-term prospect of what those founders have done and what is ahead of them is amazing. emily: venture capital firms in general raised a ton of money this year. does that mean they are in a good position, no matter what,

and where do you want to be placing your bets for 2022? eric: you had it on a prior segment, the fed has printed a ton of money. that money is looking for returns. so venture capitalists have raised tons of funds and are deploying that capital, in a lot of cases really quickly. i think it is here to stay. i think the larger macro backdrop, which is really interesting, is the shift that we are seeing on enterprise from on-premise stuff to the cloud, the reality is we are still quite early in that. you are starting to see the beginnings of a new set of consumer companies. nextdoor just went public. one of our companies. discord is another one doing great. you are seeing these next-generation consumer companies emerge as well. you mentioned confluent amplitude. , you have the nextdoor and

discords of the world that are all building to be the next two great companies. i think that will be great, and i am sure there will be a new generation behind that. hopefully we will find some. emily: benchmark capital partner eric vishria. great to have you back on the show. thank you. well, coming up in our next edition of "bloomberg studio 1.0," i sit down with the alphabet vice president and cfo. we talk about google's hybrid work plans for the future. and find out how she manages the demand of work, family, and building a successful career. in this excerpt, i start by asking her about alphabet's m&a strategy. ruth: the main thing we have done throughout the life of google is invest in innovation as organic growth. we are continuing to do that at a rapid clip. we have then layered onto it acquisitions and larger acquisitions. we are continuing to be active more in the smaller ones, to be

fair, but we think there is a lot of opportunity ahead of us. and so we are continuing to invest in partnerships, in some acquisitions, and we think there is still upside in a lot of areas. emily: would you say this regulatory scrutiny is not slowing you down? ruth: it is important to be focused on constructively engaging and working with regulators on what is it they are trying to solve and how we can constructively engage with them. at the same time, our engineers should focus on innovation and continuing to up the bar on what everything we're doing, address what is most important for our users. emily: google is facing more serious threats at this time in the united states than other big tech companies. how are those conversations with regulators going? are they frustrating at this point? ruth: there are certain elements that are frustrating. i listen to the outline of some of the proposed legislation.

and i think it is inconsistent with some of the priorities for public policy. so, as an example, there is a lot of focus on what is called self-referencing? are you putting too many of your products together? but during the pandemic, one in three small businesses said they would have failed without digital skills. why? what they were able to do was connect with their users in different ways. when you search for a small business, you can get directed to the small business. that is a good thing. we have 6000 small businesses we who wrote in and said, we saw this. same with a number of things on racial equity. a real surge in searches about "where is a black-owned business near me." i think what is important, let's make sure we understand what they are trying to solve and work with them on what is it we are trying to address through products so that they are helpful in the ways they want.

emily: facebook has taken a serious reputational hit. has that had ripple effects or created collateral damage for google? ruth: whenever there is a backdrop that is challenging, it has ripple effects. but what we are really underscoring is all the steps and investments that we are making to really protect the ecosystem. our commitment to our users. we know how sacrosanct that trust is. it is all about privacy and what are the steps we're taking to make privacy protected for users, protecting content and content moderation. emily: google now reaches more than half the people on the planet. why shouldn't we view google as a monopoly? ruth fish so, i go back to the earliest days, when i first

learned about google, back in 1998. in those earliest days, when i heard about this search engine, the question was why do you actually need it? back at morgan stanley, our research analyst had our team put up white pages around the conference room and was doing this comparison. what provides the most responsive results most rapidly? you can see this google thing, maybe we do need something new. that has been the ethos at google since its inception, is just continue to innovate to make this a better experience for users. so if we can deliver on that, it is really opening the world for so many people. that is the intent. emily: the alphabet senior vice president and cfo of ruth porat. you can catch more of that conversation on "bloomberg studio 1.0" tonight 6:30 p.m. on

the west coast, 9:30 p.m. eastern time. it is such a great interview. coming up, we continue to redefine the post-pandemic workplace. i am joined next by the cfo of of servicenow to talk about the shift in the c-suite in the remote world. that is next. this is bloomberg. ♪

>> i think when you look back 20 years, this will be one of the major developments in detroit's history. >> i think what is really important is that -- i have told a few people about it in tech corporations. my good friend, bill mcdermott, ceo of servicenow, has made a

commitment to come to detroit. emily: that was the mayor of detroit, along with stephen ross, founder and chair of related companies, talking about a new investment call to a detroit center for innovation to be built in downtown detroit in hopes of revitalizing the city. getting into the action is servicenow. joining me now is the cfo of servicenow, gina mastantuono. great to have you with us. talk to us about why this investment in detroit -- you are talking about adding more employees there, which is interesting given many are focusing on creating a more mobile workforce. gina: i think it is a great question. thank you for having me, i really appreciate it. at servicenow, we are focused in totality on esg. right, the world needs action now, and servicenow has an ambitious land with our esg efforts. one of the pillars is the social community taylor.

as we think about broadening diversity, those plans for a workforce in detroit are just part of it. and we are collaborating with local universities to focus on strengthening the talent development and access to opportunity in detroit and those those kind of communities. from a post-pandemic world, we are leaning into a hybrid working model. right? and while we absolutely expect people to be working at home sometimes, we expect them to be in the office at times, really coming together in the moments that matter, in times of innovation, but there will be times when the office is important, especially in the younger careers, as they are coming in growing into their careers. we are excited about the opportunity to partner with related, and the announcement with detroit is part of that. emily: how has the shift to a remote and hybrid workforce changed your job as cfo?

gina: the role of cfo has been evolving for some time now. certainly, the impact of covid has just accelerated that. cfos are playing a pivotal role in ensuring we are guiding our organizations through the crisis, and really making sure that we are making strategic investments to ensure we are coming out of the pandemic stronger than ever. we not only have a seat at the table, but we are really focused on asking the right questions. our voices are asking the questions and influencing the decisions that will really help drive a stronger, better business as we come out of the pandemic. if you think about what is going on here, it's about digital transformation and really investing in how we work, and how we work better. emily: all right, gina mastantuono, cfo of servicenow appreciate you taking the time , to join us. thank you for stopping by.

coming up, a work in progress. that is how the warner media studios ceo and sarnoff is talking about the return to the big screen. why warner has no plans to change its theatrical 2022 strategy, next. this is bloomberg. ♪

emily: day two of the bloomberg technology summit. we were joined by the warner media studios ceo ann sarnoff. she spoke about the challenges in the content streaming business and the future of entertainment. he started by asking what state of recovery the movie business is in. ann: it is a work in progress. everyone was hoping we would be on the others of the pandemic by now, but unfortunately with delta and omicron, we are kind of having to live with it for a while longer. but thankfully people are going

, back to theaters. not everybody, but certain demographics certainly are showing more of a willingness. but for us to really get back in full swing, we need the broader spectrum of ages and tastes to go back to the theater. >> who are those who are more willing, and who are those who seem to be resistant? ann: you would probably guess the answer to that, but it tends to be younger people. i am going to say below 35, young-ish. and the opposite, over 35, we are not seeing as much of an inclination to run back to theaters. certain movies, we think they will come back. i think it will be a gradual thing where people have gotten used to because of trends that were happening before the pandemic, with amazing content now being delivered in the home. high-quality content and bigger screens.

and then the pandemic kind of accelerated needing to sit on your couch and not being able to go anywhere. but people are pretty used to that. i think that is the part of the -- i think that is the biggest competition of the theatrical, the exhibition business, is sitting in one's living room and having that content be enough. so we have to compile, we, the theaters have to compel people , to come out, buy the tickets, enjoy the popcorn, head out with the family and watch movies again on the big screen. it is no surprise that the movies that tend to get people out of their homes are the big action-adventure movies, superhero movies. certainly horror movies, people tend to like to be scared together not me personally, but that is a thing. so those genres are doing better than others. but i really hope it goes beyond that, because we want to be

telling stories on the big screen that are beyond those genres. >> is it possible -- you talked about the mix of people that will and won't go -- can you release one of those big movies in theaters and expect to make money from it? ann: that is a great question. we are about to start doing that in 2022. we stated we would go back to an exclusive theatrical window, 45 days, with our 2022 slate. we are certainly hoping to. emily: the warnermedia ceo ann sarnoff there with lucas shaw. that does it for this edition of "bloomberg technology." tune in tomorrow. we will be joined by jon ossoff, the senator from georgia. last, we will be speaking with the founder and ceo of an ar game developer. before that, don't forget , "bloomberg studio 1.0" on deck with the alphabet cfo.

catch it at 6:30 p.m. here on the west coast. i'm emily chang in san francisco and this is bloomberg. ♪

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