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technology with emily chang. ♪ emily: this is bloomberg technology. coming up, a glimpse into the future of entertainment. netflix versus disney. house of dragons versus lord of the rings. all of it versus tiktok. who wins? i speak with former tiktok ceo and top disney executive kevin meyer. learning in the metaverse. our ed tech series continues talking about the future of virtual learning. lawyers for elizabeth holmes fail in a longshot attempt to get her fraud convictions thrown out. we hear from our own joe rosenblatt who is in the -- who was in the courtroom. all of that in a moment. stocks ending another week down

on the back of a jobs report that showed people are going back to work. that means the fed will likely set -- stay on a hawkish course. sonali basak is here to break it down. sonali: happy friday. you have the s&p down more than 1%. on the back of that expectation of a hawkish fed. it did try to scrape higher in the day, ending lower. the nasdaq 100 ending more than 1.4% lower on the day. you are seeing the s&p 500, both indices down on the week significantly. the two year yield, interesting you have that arise significantly into the week. getting well above the 350 level. really tiring some of those rises you see on the two year yield. those yields have a big impact on how you value a lot of these high-growth companies moving forward. bitcoin is back below $20,000. $19,959. we are watching that closely. it has not broken too far below

these levels. bitcoin trades into the weekend. let's look at another asset. correlated to bitcoin is the nasdaq 100. the five-day move here, when i said significant, but i meant was 4% drop. not the biggest drop we have seen, but moving into september, a traditionally hard month for stocks, it will be interesting to see how this trades next week we saw traders try to get back some of those gains, but ending the day and the week lower. i want to take a look here at starbucks. they have that new ceo announcement on the back of that. the stock has declined 2.8% on the day. 2.9%. deeper than we saw on the s&p. lululemon was your biggest gainer. 6.7% higher on the back of an encouraging earning. people are buying leggings. broadcom, one point 7% higher on

the day, shaking off a lot of fears for those chip companies. emily: we are going to dig into chips later. thank you for that update. meantime, turning to streaming. netflix sets to launch its ad supported service later this year. ace -- at a significant premium compared to other platforms, as far as we know. the streaming giant intending to roll out this plan ahead of its rival disney plus which will launch its own ad supported plan on december 8. netflix has announced the rate for its -- hasn't announced the rate for its ad supported plan yet. we will bring in a former top longtime disney executive, kevin, it is great to have you back on the show. so curious what you think of this. especially with these ad supported tears. how much do you think these will really drive new subscribers? >> great to be here. always enjoy being on your show.

there's a lot of promise for the ad supported. there are substantial tailwinds of the marketplace. -- marketing dollars and high-quality video environments. linear television has been traditional place they spend their money and of course that has become a challenge from an audience perspective as audiences move from linear television to streaming. streaming is where the audiences are. when i watched the -- several years ago, we had marketers try to bang down our doors to have advertising on disney plus. there will be an explosion of demand. i have also been involved in hulu for many years, the ad supported version of hulu was five dollars plus for consumers, but brought in roughly $8.50 of monthly revenue just from the ad sales. i am feeling pretty bullish. consumers tend to pay less, even

if they have to put up with a small ad load. netflix and disney will be successful. we don't yet know how netflix will -- disney surprised me by keeping at the same price. moving the ad free price up, i think that is an aggressive price move. it will be interesting to see how much price sensitivity is in the disney plus subscriber ranks. emily: you have said netflix and disney can both and will both coexist, but over the long term, given the challenges we have known to face, does netflix or disney have the edge? >> they are very different services. disney is configured with the core browned -- for a of the walt disney company. pixar, star wars. it is designed to super serve the fans of those brands. they have expanded under bob chapek. they have expanded programming

to have general entertainment, but the essence of disney pluses for fans of the brands. not only families, of course if you have kids you are more likely to be a fan of those brands, but also for adults. single people and couples are fans as well. that is the focus of disney plus. if you are a fan of one of those brands, you kind of have to have disney plus to satisfy the affinity you have. you can't get that programming elsewhere. netflix of course is much broader based. it is very much a general entertainment brand. i think that has the broader footprint and i think disney plus is typically going to be an add-on to netflix. both are doing great. both will be "winners" in the battle for a successful rollout. i think both are going to coexist. i do not know that either of the cash that either of them care if one is bigger than the other.

emily: streaming has surpassed cable for the first time. hbo's house of dragons has been a huge hit. who else wins and who else loses in this new future? >> it is hard to say. i guess it is obvious to say that people subscribe to these services for the programs they love. netflix has already established itself as a big enter. there is turbulence on the stock price and they stalled out a little bit on subscribers. a lower price will help them there. they should see some additional growth restarting that offering. i think disney plus and netflix are inarguably winners. hbo max, the program that it has in its vault and the ongoing production of hbo and discovery programming, and even cnn could be in that service. i think that is going to be a winner. i am positively surprised by paramount plus.

i did not have a lot of hope for it to be as successful as it has been. but, they are making a big play. you have apple and amazon, they have a lot of money. other strategic -- other than the direct economics of the streaming services themselves. they are pretty well committed. you have a handful, four or five big winners. and of course the -- will continue to exist and be profitable, but smaller. those will be competing with the big guys come up with the big guys, there will be several of them, ultimately. emily: seeing ads for amazon's lord of the rings everywhere. the reviews on rotten tomatoes, the audience reviews, not so positive so far. critics have been more positive. what do you make of it? >> i haven't had a chance to watch it. i have seen the same reviews you have seen. i would pay more attention to

customer reviews than critical reviews. there is a lot of pent-up excitement for this title. i expect to do well. it doesn't have to be critically reviewed for it to be successful. i expect it to work. i expect it to help amazon continue to gather and feed crime subscribers. people go to prime not just for video, but for commerce transactions on that platform. i do not think it is a must win. it does not have to be one of the talkshows of the year to prove successful and to leverage more e-commerce activity on amazon. emily: you also talk about consolidation, but it seems you are optimistic about a lot of these services. if consolidation happens, who gets consolidated? >> that is a tough call.

i guess the ones that are somewhat smaller. no one is consolidating apple. no it is consolidating amazon. there's always members of the -- peacock, hbo max, parent companies merging. paramount and paramount global is often discussed. starz is out there too, being separated from lionsgate. it is hard to say. if there is consolidation, the bigger guys swallow the smaller guys. that will take place here too. you might look at some of the digital giants to buy some of the smaller media companies. but i think that will happen ultimately. not in the too distant future. emily: weeks ago, -- urging disney to spin off espn,

otherwise positive of bob chapek. you worked at disney for so many years and oversaw the -- oversaw espn. was it ever discussed? is this ever going to happen? >> interesting question. from time to time, we discuss what should be the point of it all. we have a very high quality board. one of the things the board always asks of management is to review the asset portfolio and understand whether or not there should be additions to assets, or subtractions. it is discussed at various times over the years. bob chapek is a smart guy. i respect him a lot. he is doing a good job as ceo and he will make the right call. my own observation would be that espn was a very strategic asset for the walt disney company when

pay-tv was growing, and espn was an important part of the bundle of channels disney had including abc, the disney channel, national geographic, all of those channels. as the pay-tv universe continues its precipitous decline, i doubt audiences -- on the near channels is decreasing substantially, but the channel business not only for disney, but all of these companies is declining. therefore, it will be important for espn to be able work in that reality. i think the reason the strategic imperative of having a sports service like espn is -- than it used to be, but there's more degree of freedom for bob and the management team to make the right decision. i wouldn't be shocked to see it spun up, but i would not be shocked to see it -- emily: interesting. ok. next week kicks off the nfl season. there has been a lot of talk as

whether these services need sports. is that going to drive the next era of the subscriber world? maybe not just sports, maybe news. what do you think? >> i am -- a service called the zone. we stream the most important soccer leagues in italy, spain and germany. and japan, we also have a big desk in the u.s.. the ultimate way sports will be delivered to the consumer will be via the internet on apps, televisions and mobile devices. just like entertainment programming is. i do not think entertainment services need to have sports, nor do i think sports needs to have entertainment. consumers are tired of paying a lot for sports when they are just interested in the entertainment. that is what is bringing the bundles down. people -- some people just want

to watch sports. this aggregation of different programming types and having consumers make a choice of what they want to pay for, that is the promise of the internet. that is what streaming services have done. sports services will be paid for separately and packaged separately from entertainment in the future. emily: we want an update for what you are doing at kendall media. you bought -- candle media. we want to know where your priorities are in this constantly evolving world. >> candle media, we have a fantastic partner in blackstone. they have been unbelievable supporters. we have bought a nine or 10 companies already. hello sunshine, moon buggy. hello sunshine is doing great. reese witherspoon is highly involved. we are doing very well, but also moon bug, if you are a parent of small kids, and you know our

characters. -- the most popular streaming -- second most popular show on netflix last year and the second youtube channel in the world. a whole bunch of different ip we have. that is doing well. we have bought a company called exile, which does programming in latin america. isaac lee, former head of content for univision, it as she is a great latin american programmer. we also have -- which does social media storytelling. that will help all of our brands do much better in the marketplace where we need to have a social media footprint. we love the flywheel we have created in traditional television, storytelling and we are bullish on our future. emily: i have a three-year-old. cocoa melon is huge in our health's. -- huge in our house. i do not know whether to thank

you. [laughter] always good to have you, kevin. have a great weekend. a consulting firm tracking amazon's real estate footprint says it is planning to close dozens of warehouses. amazon either shuttered or killed plans for two facilities, totaling -- square feet. this according to nw cbl international. the company has delayed opening an additional 21 locations. -- could unwind heart of the pandemic era expansions. he also told me more at our bloomberg tech summit back in june. this is bloomberg. ♪

emily: twitter asking a judge to order elon musk to turn over all of his text messages from the first six months of 2022. the company says the billionaire is not cooperating with exchanging evidence ahead of the trial. jeff joins us from delaware. more late friday news. is it usual to be asking for six months of text messages? should we have expected this, given elon musk's witness number one? ? i do not think it is unusual. i have seen it in other cases that i expect mr. musk does a lot of business by text. emily: is he actually going to hand them over? >> i think the judge will ask him to hand over maybe not all of them, but some of them. they will have to go through and have somebody look at them to

see if they are relevant to the case. he is not going to be able to keep texts completely out. emily: how does one do this? there are perhaps thousands of texts. there could be a lot of different kinds of information. >> true, but he also, like many folks, has multiple phones. he dashes phone periodically. it gets touchy trying to figure out. i suspect that since he filed the notice he was going to walk away from the deal, that he has been saving texts. judges do not like hearing that kind of material has been deleted. emily: ok. twitter says he has not been cooperating in the discovery process. what does that mean? >> discovery is the pretrial information exchange that folks do see you can get the material to put your case together.

twitter claims he has not been cooperating in good faith. dragging his feet, in other words. most people say -- muska people say it is not us, twitter has been dragging their feet and has been hiding witnesses. these kind of fights are very common in the run up to these murder cases. -- merger cases. emily: we are waiting to see if this will indeed stay or it gets pushed back to november or december. jeff feeley in delaware, thank you. get started on your weekend. this is bloomberg. ♪

♪ emily: chip stocks in focus after the u.s. government

imposed license requirements on semiconductor exports to china. bloomberg's e -- covers all things chip. >> this is a big deal for nvidia. $400 million -- [indiscernible] for china, this is a key piece of technology. these are -- that really help -- you really need this if you want to stay up-to-date with google. this could be a major blow to chinese customers. emily: chip companies reporting a loss of doom and gloom. broadcom seems to be more positive. why? >> they spent an hour on the phone yesterday with analysts saying, are you sure? are you sure? there is a division between the -- related companies where we are seeing -- going away after

the pandemic. lots of companies like intel a lot weaker outlook. on the flipside, broadcom is saying infrastructure -- people are still building. companies are still investing in infrastructure. that is why our numbers are good. emily: broadcom is a big apple supplier. what is what they had to say indicate about iphones now? especially with the big apple event coming up? >> absolutely right, that got lost in the mix yesterday. the shipments for our large north american customers that everybody knows -- doubtful -- are going to be what they were at this point last time. and demand is solid. indications from that on a unit basis are -- expecting the next version of the iphone. as good as the previous, which given the environment will be seen as --

emily: bloomberg technology will be coming to you live from the apple event wednesday of next week. we will be across all of the new iphones we are expecting them to unveil. ian, thank you for that update. coming up education in the metaverse. it may not be as far out as you think. we talk about what it means for sticking to data privacy. this is bloomberg. ♪

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emily: welcome back. for the last installment of our

ed tech series, we want to look at education in the metaverse. with today's technology prompting safety concerns, how do we make sure the metaverse can be safe for all students? let's bring in a professor of psychology at temple university and senior fellow at the brookings institution. doctor, thank you for joining us. what does the metaverse look like in the classroom? or should i say, what does the classroom look like in the metaverse? >> we are not sure. we are on the cusp of so much that is so exciting that it feels kind of like that d.o.t. calm revolution. i wanted to take you on a journey right now of what it would you like if instead of reading paragraphs about ancient greece, you actually got to visit it. actually got to figure out how we know so much about ancient greece.

even though we are living thousands of years later. what if students could be active and engaged, as opposed to passive? emily: i feel like technology is just coming into classrooms. we are just getting kids to start learning how to code. how are we going to get educators and schools on board and equipped with this new technology? >> it is going to take a while. affordability is a peak -- is a big piece. the second big piece is that right now the glasses are clunky. researchers are working on that. quite soon i think it is going to be like wearing a pair of glasses. and they are going to be able to enter new spaces in virtual reality. one key piece i want to add is that this is not to met -- this

is not meant to be a substitute for the kind of reality, or the kind of social reactions we have in that reality. it is not a solo game. this is meant to be a space in which we can work with others and have features that guide us into these worlds and back out again. emily: a lot of parents are concerned about screen time, tech addiction. why wouldn't this make all of that worse? >> tech has good sides and bad sides. it takes us to places we could never go otherwise. on the other hand, if we sit around by ourselves, we -- solo doesn't work well for human beings to have a socially integrated brain. what we need to move to is a more collective kind of environment that prompts social interaction rather than taking over.

that is going to be true as we go along. the same with nutrition. how are we going to stop our kids to eat -- stop our kids from eating dessert? set limits. emily: what about concerns about privacy and protecting our children in these new worlds, given that much of this technology is going to be deployed by big tech companies, some of which do not have the best record on privacy? >> isn't that true? it would be wonderful if a lot of this was -- of the education systems so that teachers could work together to prep wonderful experiences our kids could enjoy and guide them. what i don't think we want to create is a total free-for-all. i know, like you do, many new technologies can get out of hand. let's move slowly and try to

think it out before we just blast it on to the marketplace. emily: i spoke with the attorney general of new mexico yesterday, who sounded the alarm about kids privacy when it comes to technology in the current world. he has actually sued google about how they use student data even before the pandemic ever happened. a lot of technology the schools are using is free technology because a lot of these schools are under resourced. he is very concerned about regulation and whether or not lawmakers can figure out how to regulate current technology take a listen. >> new technology is a great equalizer in terms of education outcomes. but, we are not regulating these companies. we are not regulating safety, and the safeguards within these products. emily: what do you think of that? given that obviously we want

everyone to have the benefit of these technologies, but they also need to be fairly and appropriately regulated. but regulation is left to lawmakers who don't necessarily understand the technology they are trying to regulate. >> they have to help train them. i couldn't agree more with what i just heard. there has to be some regulation to make this space for parents, and for children. i think we have to do with that upfront. in the same way, we have to make sure that there is quality of experiences in the metaverse. we have to have some gatekeeping. a free-for-all that just says anything goes is dangerous for children. as a parent, i would be scared too. emily: and then there is the equity piece. >> oh, yes. emily: so much of tech in classrooms is not equitable. some students have access, some do not. if you do not have access, there

could be a huge learning gap. when it comes to something like the metaverse of a that is so advanced, are you concerned it could lead to even bigger class divides? >> as we suggested in our paper, this is something we definitely have to look at. but, we are on the cusp of something. classrooms are not really ready yet. for taking on the metaverse. i think we have some lead time here to really think about how we want to introduce it. what does a virtual classroom look like? how should we retrain teaching? how do teachers get on board to help us? how do we bring sciences in? to make sure the metaverse is really of high quality. in the interim, it may be something like an imac. it may be that the community will adopt a certain -- where

students on field trips to places they never could have been otherwise. i think there is potential. while i appreciate your presentation today is more on the safety, i think we have to put together the of no and the "oh my gosh" and create a product that will be safe for children at a cost that will be reasonable. emily: let's leave on the "oh my gosh." what are you most excited about? where do you think we will realistically be five years from now? >> five years from now, we will have more portable products that allow us to access the metaverse. but i do not think classrooms will be ready yet, but we can set up communities that children can take field trips. i think for me is a lot of things that were otherwise kind

of boring to kids will now be exciting. if we could bring more joy and experience, energy into classrooms and into learning experiences, children will not only learn what we are teaching them, but they will learn how to learn. since the world is changing so very quickly, that is a skill that everyone needs. emily: that is something certainly worth continuing to innovate for. kathy hirsch, temple university, senior fellow at the brookings institute, thank you. what a fascinating conversation. coming up, what congress wants to know about crypto fraud from the biggest exchanges. this is bloomberg. ♪

emily: today's jobs report could have been dire for bitcoin. -- ceo says bitcoin could have dropped below $15,000 if the report was a major feat. bitcoin has been increasingly tied to macro sentiment. joining us is the head of otb trading for crack and. what is your take?

>> there's no question that bitcoin has been tied to the -- market. that's for a few reasons. in one area, bitcoin is kind of like a growth tech stock. $300 billion, 400 billion dollar market cap. it's not really a macro asset. you can think about it like an equity investment. but that is a small component. another piece of that is it becomes a self-fulfilling prophecy, similar to -- analysis. everybody is looking and trading on them and believing them. you can start to see that price action. the last piece is that in a lot of ways, i think investors in the crypto space are latching onto the macro narrative a little bit because without that there wouldn't really be many catalysts or many events for bitcoin. in a bear market, volatility has come down.

we had been sitting around 20,000 for a while. if not for some macro events like jackson hole and jobs numbers, august would look a lot quieter. those investors are following them for a number of those reasons. emily: speaking of events, we've got the merge in mid-september. what are you expecting to happen around the merge? what kind of volume will there be? >> we are definitely seeing a wide range of speculative bets, positioning and hedging being put on, particularly in the derivatives market and the options market. open assurances -- on a theory of him. you look at the volatility of the term structure, the september 16 term they are pricing in, a couple of them are

about 10 points over the september 9 term. investors are gearing up for some sort of price action and some sort of move for sure. emily: how is crack and handling the merge? are you going to halt the treating of ether? >> customers can still trade either. it will be available. all of the trading services will be available. there might be temporary -- on withdrawals and deposits, the trading will be available. >> congress has been questioning your handling of fraud. what is important for regulators to know about your security standards? >> crack and abides by all of the monitoring. we have been doing this for more has been around for more wanted -- more than a decade. some inquiries might be related

to just some of the fallout unrelated to the crack in, related to tornado and things of that nature. our point of view has been a transaction monitoring we always do. emily: meantime, crypto.com, this story getting it, suing a woman after her $7 million when she was supposed to get 100. reportedly she went on a spending spree. i am curious what your reaction is to this story and how crack and handles these kinds of scenarios. >> this is one of those things where you look at bitcoin and what makes it so powerful is that the transaction settlement finality, any intermediary, you can send money 24/7 into the network that clears instantly, better than a wire transfer. obviously there are downsides.

on crack in, you can imagine they been around for many years, they have a lot of protections, policies and procedures, safeguards any time are sent out. we have customer service representatives and we do approval reserves audits so customers can feel comfortable that all of the funds they have on deposit are not being sent out either from the various reasons or errors. all of these things have been -- over time because all of those powerful elements you get from being able to send money through bitcoin is a method of payment. we have to protect against those. emily: where do you think the bottom is? >> i think it depends on the macro environment. with crypto, the volatility coming down, you can have -- you can kind of see -- comfortable around this level, which could be both good and bad. leverage has been wiped out of

the system, so there's not as much of that riskiness and a lot of the positions out there. everybody is waiting to see what happens in the macro market. one thing shown in the nasdaq in the s&p is that will -- crypto markets as well. emily: thanks for that. head of otc trading, appreciate you stopping by. what would you buy with $7 million that accidentally showed up in your bank account? coming up, how elizabeth holmes tried to get her fraud convictions thrown out. and why it didn't work. that is next. -- was in the courtroom. this is bloomberg. ♪

emily: let's get back to the -- trial. a lot has happened since elizabeth holmes' guilty verdict. she just tried to get her own conviction thrown out. but, the judge upheld the verdict. let's break it all down jewel rosenblatt who was in the courtroom every day and was there for this latest decision. what happened? >> yesterday's hearing was rather routine, similar to -- her lawyers argued the verdict should be thrown out for insufficient evidence. that the government did not really unmask the evidence required to convict her on the various accounts she was convicted of.

that was quickly dismissed. surprisingly from this judge who likes to consider everything, he was not having it. emily: what is next? does she have other options? >> she does. we are entering the end game of her legal odyssey. but, there is going to be a flurry of activity. we have her sentencing next month and assuming that goes well for the prosecution, she will show up for prison 60-90 days after that however, yesterday at the hearing, she threw something of a curveball. this is a different kind of motion in which she is arguing for a new trial. her attorneys have found something since the conviction that they have decided they are going to argue warrants a whole new trial.

not an acquittal, as they argued yesterday and failed, but for a new trial. emily: three more months of jewel rosenblatt in the courtroom. really, how likely is it she is going to get a new trial? all of this is unlikely. extremely low. all white-collar criminal defendants usually ask for this and do not get it. this new question of a new trial based on this new evidence, low probability. it is so fitting with how this thing has unfolded it is going to be interesting to see what it is she achieves. emily: in all likelihood, she is going to jail? >> in all likelihood. it is unbelievable after all this time. i am being careful. emily: how much time is she likely to serve when all is said and done? >> this is the question i always get. look, there has not been a case

made that her entire defense was built around not winning an acquittal, but minimizing her time served. if she gets seven years, that would be a win for her. at this point. she is facing 20 years, she is likely to get eight to 10. emily: how much longer does this drag on the echo >> her sentencing is scheduled for october 17. barring a twist, she would be asked to show up for prison 60-90 days after that sentencing. she will appeal, but it is unlikely. she will have to go to prison while he appeals her conviction. emily: what is happening with sonny? >> everyone has forgotten about sonny. [laughter]

he was convicted in may on 12 counts. in other words, all of the counts, including the count of patient fraud. his sentencing is scheduled for november. emily: will he serve as much time as her? more? >> this phase of sentencing, both sides will make the case that they are good people who went astray, all of these kinds of arguments from family members and friends. the judge will decide and compare their respective roles in this fraud and to who should get what. they were both convicted of conspiracy. it was a crime of co-conspirators. i am thinking they are going to get the same sentence. i think they are both going to serve eight to 10 years. emily: joel rosenblatt who has lived and breathed these cases, thank you for the update.

this weekend, nasa will try again. saturday, the launch of the artemis one moon rocket. the space agency tried this week, but the launch was scrubbed due to a problem with technical issues. it is the first major flight in nasa's ambitious plan to go back to the moon. the mission is carrying test dummies instead of astronauts. you can watch the launch on bloomberg starting at 2:00 p.m. eastern. that does it for this edition of bloomberg technology. tuesday, we start a series on sports technology. that will be fun. draftkings's ceo jason robbins will help us kick that off. have a great weekend. . this is bloomberg. ♪

>> something for everyone in the august jobs report to the top line beating estimate but the unemployment rate taking higher. european inflation hits a record high. this is "bloomberg wall street week." >>