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it it is 11:00 a.m. on wall street and "squawk alley" is live ♪ snap what a happy sound ♪ snap is the happiest sound i've found ♪ ♪ tap slap but snap makes the world go round ♪ ♪ snap crackle pop rice ♪ crackle makes the world go round ♪ ♪ i insist that pop is the sound ♪ we'll get to snap's pop in a moment, but first welcome to "squawk alley. i'm caro quintanilla with john for the and kristen boorstin snap is exceeding its first day of trade, 38 and change. netflix going the opposite direction.

we're going to discuss netflix first. good morning good to see you. >> good morning, carl. >> you said investors who are looking at this print are going to struggle to find negatives. >> yeah, there really wasn't anything to dislike. we've had advertising pullback during covid and now we're seeing the snap back across the board. we think this is going to help facebook, twitter, a number of the advertising related names, the user engagement was high you can do anecdotal surveys of all of our kids around the community here and they're spending a lot of time on zoom school and then they're on snap to figure out where all their friends are on the map we think that, again, advertisers are drawn to this because of this gen-z population is highly engaged right now. they are not playing sports. they're effectively sitting in school all day and they want to get out and do other things. so we think ultimately this is a dream for advertisers right now, given the lockdown, and they're

continuing to benefit. there's a lot of momentum and the gaming side of the business, the content side, we think the snap map, which i use to monitor my kids, the ability to place ads on the map so as the kids are walking down the street and there's a half-off ice cream sale, there's a great way for advertisers and small businesses to reach this younger audience so overall encouraging and we think it's going to be good for facebook >> all the dynamics make sense and they're not new. it's the migration of digital dollars, the efforts when a stock moves by a third, why is the street seemingly surprised and how much could be given back if in fact those same kids you're talking about do get to play soccer in six months >> i think inside tech a lot of investors were sitting inside software and the massive outperformance i think there was some debate

where ad dollars going to come back this year or next year. so we think that ultimately that you saw this portfolio shift over where we're seeing, we think, lower multiple in internet versus software so i think you're seeing sector rotation, secondarily, again, i think many believed the bounce back was going to come in '21 and not '20. and i think ultimately there was a lot of bears on snap, could they actually monetize this platform david talked about this morning our kids just use it to communicate and are the younger audience actually going to engage with these ads and we think that ultimately as they age up, they are, and they're effectively using the parents' money to actually buy some of these products that they see on the platform >> brent, bigger picture, what happened to the industry crushing monopolies of facebook and google in these results? i mean, google tried to compete with facebook and failed

now you have snap, which some people had given up on, that appears to be doing okay should that shift the way investors view this narrative of antitrust at all >> i think the younger audience still is on instagram and facebook, but i think that they've effectively spent more time in some of the survey work we've seen on snap i don't think they're spending -- they're spending time on youtube, they're spending time across, but i think ultimately what snap has done has garnered a little more share among the younger audience and we expect that youtube and facebook numbers will follow through. and i think you've seen a number of other of my peers upgrade some of the advertising names in the industry, so i think effectively digital ads are going to continue to build scheme it's not necessarily some game, we think all of them are benefiting, but, again, snap i

think was perceived to be one that was lagging, wasn't considered the darling of advertising, and they really have done a nice job they've brought in a in you mon management team across the board. >> brent, we certainly have seen the other social names move higher pinterest shares up and facebook and twitter as well. i have to go back to your comment earlier about facebook i'm wondering if you think that snap benefitted from the facebook ad boycott that we saw this summer. they alluded to it in the comments in the earnings call, but kept it very vague >> i don't think so. i think what we're benefitting from is just this ongoing surge to digital the advertising boycott, again, we don't believe had a material impact it was really the small and mid-sized businesses that kept facebook afloat. we don't think these big brands suddenly just showed up on

snap's doorstep and said we were giving this to facebook and we're giving it to you now we think the overall momentum around digital is helping right now. i do think there has been a wane from the younger audience a little bit off instagram towards snap, especially in this pandemic i think that dynamic has happened, but i don't think it's necessarily hurt facebook's opportunity and we're seeing time spent across youtube, instagram, and snap continuing to be very strong among the younger audience >> every parent knows exactly what you're talking about. brent, appreciate it good to see you. we'll talk soon. let's include netflix in this conversation. down sharply after quarterly earnings and subscriber growth both came in short of expectations our next guest raising his price target on the stock, saying he's still in it for the decade mark, you also had a note out on snap, so give us the perspective on what's happening here in

internet overall, because, you know, i'm surprised, given the dominance of facebook and google in the advertising market that snap was able to do so well and given the pandemic, that netflix disappointed were you surprised >> yes, we were surprised by the netflix results. we had expected it had come in strong stronger last quarter they warned in the march quarter about the june quarter and it didn't happen, they bloew out subs that corner. so we shared they should be able to beat it this quarter. the guidance they gave for subs for the december quarter was kind of in line with the market bogeys that were out there and you have a correction on a stock that's gone 60%, 70% up this year it tells you the market became confident in the long-term sub growth and also there were three cash flow inflection points in

this quarter so i think that the core thesis is still there and we would take advantage of this kind of correction it's not a huge correction it's not a back up the truck price. but we would take advantage of this correction and buy shares of netflix. >> kind of bold to double down and raise the price target to 630, given that there was so much lack of clarity going into this report. why did you? >> well, the numbers, the bottom line numbers came in better than expected so we'll have about 18% operating margins this year. last five years they've been rising about 3% each year. this year they're jumping up 5%. here is what's interesting, jon. this company has kept marketing expenses flat. they haven't increased them for three years in a row, despite adding 75, 80 million subscribers. you cannot name another company that has been able to grow with a paid subscriber base like that without having to increase

marketing spend. that should give you greater confidence in the future that they can keep raising margins, because the subs are going to keep growing but they don't need to grow marketing spences. the other thing that was key from the print was that there's no production halt here. so production is back on they're going to have a full slate in 2021 when we still have theatres that are months away from bringing those movies, the bond franchise back into the theatres so we're still going to have a huge content advantage over anybody else and that's going to help with sub growth this year and next year. >> mark, they may not have higher marketing expenses, but those content costs are meaningful and growing, which makes me wonder how much they're going to need to raise prices. how much of your outlook and your optimism about this stock is based on netflix's pricing power and when do you anticipate some other major price increases? we saw a couple this past quarter. >> yeah, you're right, julia let's see, this is a company that is not going to back off from spending more on content

each and every year. this year it's going to come in low, it's only going to be about $13 billion that they're going to spend cash out the door on content. i think that's jumping to $17 billion next year and expect it to ramp up by $1 billion each year in three or four years they'll be spending $20 billion a year cash out the door on content but they'll be able to afford to do that because they've got so many subscribers that are paying them $10, $11, $12 a month. that's the formula, more subs, more revenue, more content span, et cetera. and then when are we going to see the next price increase? my guess is in the u.s. you're going to see one sometime in '21, maybe in the back half of the year when they roll out "stranger things". you want to put the price increase when you've got something great and extra to offer consumers. the next season of "stranger things" is probably that next great thing. >> that's how the price increases work but not necessarily how the price targets work thank you for explaining your perspective. >> thank you

after the break, former oath and aol ceo mark a armstrong we're back in two minutes. don't go away. joirks in of the market.d view it's smarter trading technology for smarter trading decisions. fidelity. and sweetie can coloryou just be... gentle with the pens. okey. okey. i know. gentle..gentle new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database

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still lots of buzz surrounding the justice department's antitrust lawsuit against google the suit focusing on the alphabet unit's alleged monopoly over the online search industry. joining us is tim armstrong, founder and ceo of the dtx

company and the former president of the americas for google tim, thank you so much for joining us today i want to hear about your new company, but first i am very interested to get your take on this google lawsuit, because not only did you work there, but you also competed against google and perhaps had a sense of what kind of market power google could exert when you were competing against them what is your take on this doj and attorneys general action >> julia, i'll probably give you an answer mostpeople aren't going to give about this, but i read the doj filing end to end and i was at google when we were at 13 out of 13 search engines and the first building outside of mountain view as hi apartment in new york city on 86th and columbus so when i read that document, the first ten years of it i look at a company that basically had almost perfect execution on one side, and on the other side was competing against some of the largest companies in the world and some of those companies

probably didn't make all the right decisions in terms of the focus. and there's one line in that document that i think most business people should pay attention to, and it's the focus on user quality and making user quality part of the business model, which is really what separated google both in search and advertising and other businesses google built a de facto enhancement for consumers right into the core business model so i look at the beginning of google as that the second half of that document i was out of google and working at aol and we sold to verizon, so i was on the outside during that time period but my summary is google is an incredible asset for the united states google did an amazing job coming from nothing to being a world leader in what they do the government is always playing catchup with technology, so i think this is another example of the government trying to catch up i won't comment on what the right thing to do with google is that's up to the government.

but i would say there's a lot of business lessons in there with a lot of companies that could have changed kind of their business models to adapt, like google did. and i think it's really no one else is going to say this, but i think it's a testament to a lot of perfect execution on google's part and i have a lot of respect for the business they've built and have continued to build overall. >> so you think it's perfect execution and not anticompetitive and exclusionary market practices, which is what the doj complaint alleges. but i have to say, tim, your company has competed often unsuccessfully to compete with google >> well, i'll leave it up to your interpretation. i think at aol we did an amazing job of doubling the value of the company and taking something that was one of the worst mergers in history and turning it around in the face of google and all the other competition. but i would just say this, julia, my job is to grow

companies and the company i'm running right now, dtx, which we'll talk about, we're really a pioneer in the next generation of consumer access and direct to consumer so i don't look at anything else in the free market playing field and i can't rely on the government to come save me i have to save ourselves and i think the work we did at aol did that and we proved it with the outcome at aol, and what i'm doing now, we launched our company on cnbc a year and a half ago and it was really around three words, direct to consumer and dtx is direct to everything. so i'm here today to talk about the launch of flow ko tv and the comeback economy with dtc. but i think google is an incredible company and they're probably going to have incredible challenges with the government but it's not because i think they're doing evil things. i think they had really good execution and they ended up in a position to be able to win deals that they've done a great job of

winning. >> good morning. it's jon fortt are you saying the facts assembled in the doj's report you disagree with, or are you saying that despite those facts, your interpretation is that they shouldn't lead to some remedy that views google as a monopoly abusing its power? >> i'm going to tell you something right now, i have zero opinion on what the government should do with google. >> i'm not asking you really what they should do. i'm asking you if you've looked at the report and the facts that they lay out of google's behavior and you say well, i don't think that's true, or are you saying that's true, i just don't think it's a problem >> i think -- i don't know whether it's not a problem the government can decide that it's void of the larger context of what was happening in those industries google wasn't competing against small businesses, it was competing against the largest businesses in the world and the best-funded businesses so look, google can stand on their own record about how they behaved and what they did and

the government can have an opinion about that i'm just trying to zoom out a little bit, which was when you read the document it's a one-sided version of that document and, you know, should google change, should the government change? i don't know but i also know that having been there really early and watched the competitive set, google just did a really, really good job, which any business, by the way, that has done that good of a job of execution to some degree, having the doj come after you means you've been successful i always say people don't shoot arrows at things that don't have value. it's not because they're a bad company and they've done a really great job over time you can debate how they do it, but i just think the fact that the doj showed up means they've been successful. the same thing that happened to microsoft. that's my opinion on it. it might not be popular, but i'm going to tell you what i think >> tim, i want to get the latest on your company. you're renaming dtx to be flow

code explain to us what this technology is that you're deploying, how it's being used and what the business model is. >> sure, so julia, there's kind of a few things that we're going to talk about today. one is just the direct to consumer economy, which is dtx really focused on, they're investors, and dtx is our behind-the-scenes brand. the real brand that we're bringing to the forefront and coming out with is flowcode. and flowcode simply is the tesla of qr codes. we have built a new platform for connecting instantly for consumers or people who want to directly connect that is super highly designed, private, it has a lot of privacy built into it and a lot of data science behind it we're the first company in the u.s. and we were before covid hit to get behind this covid has just been a really big tailwind for us. we were on cnbc in april talking about how we took flowedcode and

helped mount sinai grow new direct users and then we went over and we helped them go from 10 million meals to 50 million meals at feeding america and that taught us how impactful our technology could be and now we've run on 66 tv networks, we've partnered with people like tracy anderson and bode miller and lance armstrong. and we have a bunch of large network partners we've worked with people like turner sports and good morning, america, and people like that with our codes i don't know if you guys are going to put a code up on the screen, julia, but i don't have to explain our product you can just use it. if you put it up on the screen, you open up your camera, you zoom in and scan it without taking a photo a link will pop up on your browser on your phone. you just click it and magically you're directly connected with the brands and people that you love >> and, tim, in terms of the implications of this, tell me

how you're trying to help small businesses or businesses in general connect to their users directly without having to go through the digital duopoly, the idea that small businesses traditional have to pay to get access to consumers. how is it that you're helping circumvent that? you may not think that google has a monopoly, but you're trying to help the small businesses circumvent it now. >> that's a good point one is, we're looking at industries that need direct connection help and they don't want to pay the faang tax. in the tv business, we're looking at a $250 billion business that is not enabled for direct to consumer and we have an instant product that works right now that's been tested for a year and we're launching it today for tv if you look at small businesses, we had about 300,000 small businesses in 50 states and about 50 countries download flowcodes and build them

you can go to 20,000 restaurants, 100,000 different types of small businesses, 5,000 universities my son is a freshman at northeastern, jack, and he's been seeing codes up at northeastern university, which is a great business school people are putting flowcodes up all over the place we're in a position right now where the economy has gone from full contact to contactless and we have one of the fastest self-service products in the world to take your business contact list i'll give you one great example of a big company that people have been talking about a lot is norwegian cruise lines they're so forward thinking, their boats aren't able to sail right now, but they're using flowcodes and we did a big partnership where they're going to put flowcodes all over their cruise ships and go contactless. and i think that is something that when you think about the outcome and the tailwind of the comeback economy for covid, it's going to be really big. >> tim, certainly getting people to touch their phones and not

anything else, the contactless economy. tim armstrong, thank you so much for joining us >> thanks, julia meanwhile, paypal shares about 2.5% from an all-time high this morning, up about 2.5% as well inding to the massive 2020 we will explain why next

square has bought some bitcoin, the fed has talked digital currency and paypal is jumping in let's get to kate rooney on that. >> the crypto launch could be a boost for paypal analysts have morning pointing to square's ability to monetize bitcoin trading since launching a couple of years ago. jack dorsey's payments company started offering crypto trading in 2018 and so far it's been paying off last quarter executives say that users who buy or sell bitcoin are two to three times more engaged than users who don't

bitcoin revenue topped $875 million. that is up 600% from a year earlier. still it only makes up about 3% of square's total revenue. paypal is saying the crypto product will be available on convenient mon venmo and analysts say it could be a boost to push the app toward probability analysts say based on paypal's spending it's still not breaking even both apps are competing to become the one-stop stop fdigita banking, but square clients are using the app more it's about 150 times per year, versus paypal users at about 45 times per year paypal stock did get a boost and bitcoin is trading at the highest level since mid-august despite bitcoin's popularity, it's still not seen as a vehicle

for everyday spending, but the ceo dan shulman saying that they are eager to work with regulators and support the role in global commerce guys, back to you. >> kate rooney on paypal more on netflix's worst earning miss ever after the quk k. "sawalley" returns in two minutes. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those.

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i'm sue herera here is your cnbc news update. just a few weeks ago, boston schools were celebrating a return to the classroom. starting tomorrow, public school students and teachers will be going back to remote learning due to the recent rise in new covid-19 cases across that city. yet another company extending its work-from-home policies. amazon has told its office employees they can work remotely through next june. you can go to cnbc.com for more on other companies' strategies during the pandemic. court-appointed lawyers say they cannot find the parents of 545 children separated from their parents at the u.s. border early in the trump administration. the aclu says parents of about two-thirds of the children have been deported back to their countries of origin. and in england, manchester

residents are speaking out against new pandemic restrictions and a lack of government aid for businesses and workers hurt by the moves. one member of parliament says it feels like the government is, quote, actively working to inflict harm on its own citizens this as covid infections rise there as well. you're up to date. i'll send it back to you. >> thank you meanwhile, netflix out with a disappointing quarter, but the company's ceo said their slate of television shows slated for 2021 remain on track with operation nearly fully operational. joining, former netflix director of content acquisition, simon gallagher. i'm not sure what to make of this quarter because on the one hand this doesn't really matter, if the quarter had been a couple of days longer, the miss wouldn't have been a miss. but on the other, i would have expected some of these rivals,

disney plus, peacock, et cetera, apple tv plus, to have fallen flat by now, they haven't. so does netflix face some headwinds. >> i don't think so. i think it's just more tailwinds. if you look around the entertainment landscape, you've got live sport that has been hobbled by covid, people are not guaranteed that they're going to get to watch their favorite team each weekend people can't go out to the movies at the moment the chains have been closed and shuttered for a period of time there's only more and more tailwinds for people to watch from their home. so it doesn't surprise me at all. >> so for q4, does the attach of netflix connected over the top hardware matter or does that matter more for roku because netflix has such deep

penetration into over-the-top hardware anyway? >> yeah, roku is doing a terrific job, but there are plenty of other alternatives and we're seeing netflix, you would never be releasing a smart tv in this day and age if you didn't have netflix pre-installed it would almost be worthless it's such an important part of the selling process. so certainly roku remains very strong and important in the ecosystem, but netflix is more important. >> simon, you mentioned sports what's amazing to me is that we're a wash in sports all seasons have been commingled, basketball, baseball, hockey, you name it, football, and yet i would imagine your view is that the viewership at netflix has not been affected by what used to be the major draw on all visual media. >> i think if you go and look at each of the individual sporting leagues, you'll see their ratings are down year over year,

so there's no doubt that when you don't have the sfpectators n the stands it takes away the event element and takes away a degree of excitement from the live sports and that's, i think, been impacting on the audiences and also you've seen with the nfl, you don't know necessarily if your team is playing or if they've been rescheduled so it's a challenged season for all sports and i think the nfl managed it very well and created a real event around their games with the way they managed the arena. but it's certainly proving a lot more challenging with the nfl in the outdoor arenas. >> when you look ahead to next year, netflix itself warned that they were up against very tough comparisons in the first half of the year then you have the fact that the movie industry is expected to come back and expected to do its big theatrical releases with a real backlog of films that were supposed to be released this year

and if you expect sports to come back at a more regular cadence next year, could there be even more headwinds for netflix beyond just those tough comparisons? >> i don't think so. i think it was referenced in the earnings call that they'll return to a nor normalized growth rate next year, so i think they're aware that some of the tailwinds might go away, but they still seem very confident and it has become the default. when you sit down, generally for most people when they're sitting down on the couch for the earening, netflix is the initial go-to point for their entertainment choices. so i think they're going to continue to be that default and people aren't going to fade away and aren't going to cable in the same way they were they'll go to netflix first and see what has dropped this week. >> all right, we'll continue to watch that, literally. simon, thank you

simon gallagher from spg global. we're also watching shares of disney saying updated california state guidelines will keep disneyland closed for the foreseeable future county officials say no theme park with the capacity of over 15,000 people can reopen until the county's covid risk level drops to the lowest tier rcsney shares up just half a peent today. "squawk alley" will be back. stay with us jooerk exciting plans available to anyone with medicare. many plans provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you're covered for hospital stays and doctor office visits, but you have to meet a deductible for each and then, you're still responsible for 20 percent of the cost. next, let's look at a medicare supplement plan. as you can see they cover the same things as original medicare, and they also cover your medicare deductibles and co-insurance,

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we're watching pinterest this morning two upgarades today, gold man stocks, stocks up 175% for the year so far. we're back in two minutes. t

is the biggest antitrust case against big tech since the 1984

case against microsoft douglas melamad, former u.s. assistant ag was working during that case against microsoft and joins us now it's great to have you welcome. >> good to be here >> taking stock of the complaint yesterday, i know you've said that the legal theory behind it is well-established and it harkins back to microsoft, but the narrowness of the case is different than the examples that we've seen recently out of the eu can you talk more about that, and why you think doj brought something that narrow? >> it was a very narrow case, as you said they brought a case alleging unlawful maintenance of google's alleged monopoly and online search, but they didn't bring all sorts of cases that could have been brought based on allegations against google for unlawfully monopolizing the operating system market for mobile, the way they've handled

android, illegally obtaining the search monopoly, so preferencing with search, illegal acquisitions and the like. one can only speculate as to why the case was narrow. among the possible reasons, i think, are simply the doj thought that was the only strong case and that the other ones were not strong. perhaps they just wanted as a tactical matter to bring a simple straightforward case that they thought would be easier to persuade the judge of. perhaps they had other motives, speculation about bringing the case before the election suggests they may have thought as a political matter it was important to file anything against google, without regard to the broader questions of antitrust policy and antitrust theory >> so what implications does that have in terms of google's ability to defend? >> well, a narrow case like this is going to be harder in defend in some ways because the complaint on the face of it, if

you assume the facts as alleged, looks like a reasonably strong complaint. there's some weaknesses in it, but it looks reasonably strong on the other hand, that may be a downside for google. on the other hand, google doesn't have a whole lot at stake right now. the remedies to a case like this, even if the government wins completely, in all likelihood would not have a significant impact on google's search business and certainly not on their other businesses. >> why do you say that can you elaborate on what the weaknesses are that you see and are you arguing that a breakup, perhaps, wouldn't make sense because any way you break it, the search business is still -- >> i don't think there would be a legal basis for a significant breakup because the government is not alleging that the search monopoly was illegally created they're alleging that it was maintained unlawfully. and while one could imagine some incremental gain to search that

was part of an unlawful maintenance theory, it's hard to see it in this complaint they're now alleging, for example, that google acquired a competitor or made an illegal extension into a related area that could be di vested. so the kind of remedies one would imagine from this case would be remedies restricting their ability to enter into contracts and other arrangements of the type discussed in the complaint that make it harder for competing search engines to get distribution in the mobile space. and the problem there is that the horse is kind of out of the barn google has got a pretty dominant position right now there are, as the government alleges, substantial benefits to users and to google from the scale that it has already realized and has enable it to perpetuate that scale.

it's hard to see a significant change in its position in search. >> so, doug, if not a breakup of the company and if those specific search related remedies you mentioned don't make much sense, what type of compromise or remedies could you see really making sense here to address this narrow concern? because, as you mentioned, this is a company that's so large that even taking those steps to just curtail google's ability to limit others around search may not be that meaningful. >> well, i think if you focus just on search, a series of remedies, it would say you cannot buy a preferred default position, you can't buy exclusive distribution and so forth, wouldn't have an immediate impact, but they certainly could make it potentially easier for a newer innovator in search to make inroads. so over the long run they could affect search. but i think more important, a case like this could be valuable

to the extent that it suggests some enforcement of rules of the road that would govern conduct by google and other major tech platforms of an analogous or similar nature in other contexts, so they would be looking at things facebook might be doing or things facebook might be doing or amazon might be doing to restrict the access of their rivals >> that said, doug, is there anything in here to suggest that the timeline would be any different, any faster than we've historically seen? i mean, these things take years to play out and the market is moving very quickly for the services that companies like google provide >> that's always a problem in big anti-trust cases in terms of the time it takes and, therefore, the delays between filing a complaint and obtaining a remedy the microsoft case moved very quickly, year and a half from the beginning to end, that was largely because the strict judge really wanted to drive that

case, put a short timetable on the parties, limited the number of witnesses and so forth. if the judge in this case takes a similar approach, i could imagine it moving relatively quickly and not dragging on for four, five, six years, as your question might have implied. >> doug, it's great insight. very clear picture of where this may all go we hope you don't mind if we call on you in the future as we watch how it progresses. thanks. >> thanks. still to come, how do you do a concert during covid we will into you to a qup mpy cn reworking the live music industry ♪ i feel like a sinking ship before we talk about tax-smart investing, what's new?

-audrey's expecting... -twins!

♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan. mandolin, backed by mark benioff. mary kay hughes, mandolin co-founder and ceo is joining us explain to us, what is this platform and what's the business model, especially for artists who have lost a lot of money since they're not touring right now? >> first, thank you for having

me and, absolutely, mandolin is a live concert streaming platform and we're helping artists and venues connect with fans through live music we have done already 100 shows to date. we have 100 more on the calendar, in addition to the ivoted festival. absolutely, we're helping venues and artists get back to work and keep the live music industry alive. >> so, mary kay, the peculiar thing happening during covid is we're seeing a lot of big artists, like john legend, play live performances on instagram for free how do you convince consumers when there's so much free content out there, so much premium content, that it's worth paying for one of these concerts >> yes, we're excited about the way that content creativity has evolved. we're looking at creative set lists and the type of experiences that are are on vip

and meet and greets, such that there's a uniqueness and scarcity to the content. and the experience is so premium that it warrants that fee. we aren't doing shows from living rooms we are focused on partnering with venues and studios, doing high-value production where it really is a live concert and just from your living room that's very different than what you're seeing on facebook or instagram live. >> there are a lot of gatekeepers to this live music business i'm curious how you're approaching that do you think it really is the venues themselves that hold the key to you providing that premium experience and how do you get around the players like twitch that have a live component in what they do and are trying to extend into this area that you want to own >> sure, the venues are really important partners for us. we launched live from the auditorium series in partnership

with them. and, you know, that's a very iconic venue people have memories of being there and aspirations to bringing that specific venue experience into the home i think it's very unique you mentioned twitch it is a super crowded space. i love competition personally, but also i think when we are seeing a market at its earliest stage, like we are having many different providers and approaches help create the market together, i think makes us all better. twitch has more of a gamefiction approach to it and artists but collectively we're exploring how do we piggyback on what makes people love going to an in-person show and try to replicate some of that experience while at the same time dragging unique things that you can only do digitally.

i think sports has a really good analogy of some people really want to be in the stadium but also networks have created a lot of unique content, stats, commentary and things that make the in-home experience different than the in-person experience. both have a lot of value to add. >> how big an impact would it be, and maybe you've reached this point already and i don't know, to get a group, a brand like u2 or one of the big touring brands to say, mandolin, this is what we want, this is what we use, because here's what it gets us it seems to me they could dictate to the venues that they want to use this platform and a lot of artists would follow suit am i wrong there >> you're exactly right and that is our focus every day we see bigger and bigger artists, and ticket prices are rising, too i think that's just a statement of how quick the market is maturing and that the future will be a combination of physical and digital for live

music. >> mary kay, thanks for joining us we hope you'll come back when some of those in-person venues open up and people can gh to concerts again >> absolutely. appreciate it. sticking with entertainment in a way, former disney ceo bob igor joined his first business any board at apple, perfect day, the startup that produces dairy-free animal protein. the ceo and co-founder will join us friday right here on "squawk alley. carl. >> that's a big deal we've been waiting to see what igor's first move would be and that's not exactly what a lot of people predicted we'll watch it, john of course, tonight we'll get tesla and csx and las vegas sands, chipotle and whirlpool, as the transportation guys, the race continues to heat up. gm is coming off its highs of the sessions but some comments

from gm's president after having spoken to phil lebeau saying the deal with nikola and badger pickup and they hope to be finalized. the dow up 142, down 147, but we're somewhere in between there but we're in the red now let's go to the judge and "the half". welcome to "the halftime report." why one market watcher says a 10% correction is the most likely outcome for stocks. we will debate that with our investment committee joining me, joe, steve, carrie, the ceo of arius and rich sapper stone from cio, one of baron's top 100 financial advisers we watch the market. we find ourselves negative we're keeping our eyes on the hill and what ma