in other words, if they want to block google or netflix or charge more for netflix that's free speech. that is not my idea of free speech. my idea is when you use the internet you should be able to get what you want and when someone wants to speak with you on the internet they should be able to-- that is actual free speech. >> there has to be someone in control. you're on my show. you've got free speech right now but if i-- let everybody come on my show at once we wouldn't be able to hear you, don't you understand. >> you know, that doesn't always need to be someone in control, actually. >> you know we drive down the road-- (laughter) when you drive across the brooklyn bridge, there's no one deciding who gets to drive on the bridge. >> no, but on the george washington bridge-- christie decides. (cheers and applause) tim wu, thank you so much for joining me. tim wu, the master switch. we'll be right back. (cheers and applause) (cheers and applause) >> stephen: welcome back, everybody, thank you so much, folks. ladies and gentlemen, this show from day one of broadcast, this show has alw

go ahead, aaron. >> yeah, unclear if it is netflix paying more or consumers. imately consumers will pay more for higher bandwidth if they're downloading a lot but that is yet to be determined still. sandra: aaron, isn't programing development question for netflix. they made huge news "house of cards" for the company. this will be pig on the conference call. what are you looking for there? >> that was a big positive to the 2013 story. part of the reason investors got excited. the question is, does that lead to another big increase in subscribers in 2014 here if we get another big kick from the original programing for netflix? i think that is still a question mark. we'll see what guidance is for 2014. investors want to see five million incremental subs for streaming in u.s. in 2014. if we get way below that, that could be a negative for the story. david: tuna, at some point does netflix have to decide whether they are an original programmer because they're doing more of that stuff, or, whether they're just an online location, the online location for on-demand tv

argument that the the names you mentioned, whether it is facebook or netflix or youtube, they will becomeore powerful because of their pricing advantage because they got the skill earlier than anyone else. at the end of the day, it will be positioned that the consumer should not have to necessarily pay more because they are watching a lot. this comes down to how much you are actually gobbling up. how much broadband are you using? nielsen says we watched eight hours of television per day. diehards are watching a lot but they are not watching that amount. -- companieslogy like netflix think about going tohd, but they think about compression technology so that you are not eating up the same amount of bandwidth to deliver better content. they are thinking about that in the same way. maybe the technology allows for this to come to you without stop ino get to this the road where everybody is wondering if pricing changes. lead to possibly sponsored access, sponsored wireless and data access from larger media companies which could give them an advantage? i think this opens the door for a lot of p

you could make the argument that those names that you mentioned, whether it is facebook or netflix ortube, they have become more powerful because of their pricing advantage. they get to scale before everyone else. at the end of the day, it will be positioned -- look, the consumer should not have to pay more just because they are watching a lot. this comes down to how much you are actually gobbling up. how much broadband you are actually using. if you watch eight hours of television a day, netflix diehards are watching a lot, but they are not watching that amount. if the technology, and companies like netflix think about going from hd to alter hd, and they also think about compression technologies -- they are not eating up bandwidth. they are thinking about that. maybe the technology allows for that concept to come to you without having this sort of stop in the road where everyone is wondering about pricing changes. >> might this lead, possibly, to sponsored access? from larger media companies, which could give them an advantage. an established company may say, don't worry, we have it

will i not get as good of a quality service from something other than netflix or maybe netflix pays andmazon doesn't and, you know, i think that's where the real concern is. >> well, rosalind leighton, you heard those possibility at this. what are the interests of the big decision? they wanted this outcome. they got it. what are they going to be able to do? >> what i think is interesting is net neutrality is a conservative argument. it says the internet is this way. we want to make a law so it will always stay this way. we don't want it to evolve and change. the fact of the matter is that invasion, technology is about change and so, for example, if we look at the internet of the dial-up days, would we have wanted to have that same internet today? we have had as congress woman eschew said, we have had a $1.2 trillion investment the hot bed of innovation. so, i think that talking a lot about some of these negatives but let's look at some of the real positives. >> what i am trying to get you to do. >> if you have something like at&t and the iphon, in 2011 these parties said we will launch

will i not get as good of a quality service from something other than netflix or maybe netflix pays and amazon doesn't. i think that's where the real concern is. >> roslyn layton, you heard those possibilities. >> sure. >> what are the interests of the big providers? who were behind this decision. they wanted this outcome. they got it. now what are they going to be able to do? >> i think what is interesting here net neutrality is a conservative argument. it sort of says the internet is this way, and we want to make a law so it will always stay this way. we don't want it to evolve and change. the fact of the matter is innovation and technology is about change. and so for example if we look at the internet of the dial-up days would we want that same internet day? as congresswoman eshoo said, we had a $1.2 trillion investment. it made it so wonderful, it made silicon valley the world hotbed of innovation. i think that talking a lot about some of these negatives, but let's look at some of the positives. >> that's what i'm trying to get you to do. you have something like at&t in the iphone.

whether it comes from aerial or netflix are a combination of other online service -- online sources.here's nothing on the internet under $200 per month. you're looking at a world which is about $1012 per month -- $10, $12 per month. >> yahoos on another front. mercer mayer -- it is all this push to provide couldat the web portal katie couric came onstage. she was hired to help build a news business and draw more viewers and advertisers. also there, the crew from snl, which has a content deal on yahoo!. and then the teenager who sold yahoo!, thatool to was last year. here is another cool development. last that fights germs. this is the company behind apple's touchscreens. >> we found 33% of the phones actually qualify as -- >> that could be big money as more people where their technology. we are the first glass to be approved by the epa. we are also going to be able to .ee gorilla glass we could see bigger curves, make it shape around a wrist. germ fighting glasses the future of wearable technology. what about car company stepping on the gas to make your automobile more connected? we

people who make the programming are doing real well, whether it happens to go through broadcast or netflixseacrest has made the headlines because he is backing a company that hasn't innovative -- backing a company that has an innovative sleeve that goes over an iphone. >> he has been a terrific partner. this unbelievable balance between business and creative. he works harder than any human being i know. he has these fabulous ideas. we do a lot with ryan. he has a brainstorm or. two or three hours emily, up with four or five ideas every time. or three hours with ryan, and he comes up with four or five ideas every time. >> we will see later in the show. ford has ended speculation about whether he will be heading to microsoft. we will tell you what he said next. you can catch a streaming on your tablet, your phone, and bloomberg.com. ♪ >> this is a mop and a vacuum. $499. it also has a camera on top that tells us where it is in the room. if i have this, i probably will not walk around iran him in my underwear. -- around my room in my underwear. >> ladies, jon erlichman to the rescue. to talk

silver can be whatever you want but you can take a company like google or facebook or medscape or netflix and take it public on the block chain and for a fraction of the cost nearly zero cost to get rid of all the wall street people in the middle and it's totally transparent and of course people who own these currencies can participate in these offerings in ways that they couldn't before because maybe they didn't get in on the i.p.o. because the i.p.o. was given to buddies and solve very. it's all very you know crony capitalist on the distribution of these things but with this in place you have egalitarianism ism and you have the ability for a distributed opportunity to take place in ways that the current capitalist model has failed because it got overtaken by clip the crafts this is also capitalism two point zero i should point out just as the as it's going to point out because bitcoin one point zero is monetary is a two point zero and bitcoin two point zero is capitalism two point zero and now you remember that t c c the depositary trust corporation down and water street in in manhattan

. >> why they they not make the tv connect to the internet or netflix?his is a huge problem the standard living room set. if you have one of the older tv's with terrible menu systems and such like that. the problem for tv makers they are not very good at software, of user interfaces. the better companies like microsoft and apple makings add-ons, and i say what you should do is buy an old tv, buy a cheap tv and get something like apple tv or xbox and get your media that way. that adds intelligence do your tv. >> but in a larger sense, maybe the problem is tv is fading and we all looking at our screens and stuff on our smartphones? >> this is the other problem to tv. for the tv maker, we have gotten inundated with screens. we have a big screen in the living room which works fine enough and if you going to spend money to by a new thing, why not spend something, on, something, like the new ipad that has a lot more intelligence and can do a lot more than just a bigger or slightly sharper screen in your living room with limited dollars, we have other things to

really ugly or good netflix in a shareholder letter released yesterday the company said that if internet service providers try to slow down its video streams in light of the d.c. circuit court's decision that struck down net neutrality rules it would bigger asli protest and encourage their members to demand the open internet they are paying their i.s.p. to live or other words netflix wants its customers to engage in massive resistance to protect net neutrality obviously net neutrality is good for netflix is bottom line but what an open internet benefits consumers as well as business is so good on netflix for speaking at the bat jamie diamond for an interview with c.m. d.c. yesterday the j.p. morgan c.e.o. told said that the thirteen billion dollars settlement his bank recently reached for the justice department was going through her check it out. so you look at these big numbers and they are big numbers and so the public looks at them and they're trying to grasp and understand what to make of it do you think ultimately that it was fair no i do a lot of that was unfair but i can go the de

reduce your costs and if you want to have some additional things you can do aerial for ten or $12 and netflix or $8 and hbo you can do that for $15 but nevertheless you are going to spend half of what you are going to spend of your cable bill is the argument. he has won in three courts so far, they say it is no different if you have an antenna on your roof, which you are legally allowed to do and capture broadcast signals is what he is doing and it is before the supreme court. >> rose: a big decision. >> a huge decision. >> rose: so what are the applications for it other than for people the specifics of they are involved in the lawsuit? what are the implications this. >> well, if aerial is not what he calls less moonves is, which is theft, who have joined in fighting it new orleans saints not just broadcast but cable have joined in fighting it they call it theft but in fact it is free over the air and it is legal then you say, well, cable networks, which are now paying $4 billion a year, which is the right to reair the broadcast they won't air that money, why should i pay you $4 billion when

content companies i'm going to charge you more or discriminate against your traffic your customers are going to know about this. if you tell them you can't get netflix or certain content. >> that has happened with cable. you read about it or hear about it or happened in the market where the espn or something doesn't want to pay. there is a dispute over pay and then it goes black. >> there are these contract break downs. that happens. >> i realize that is apples and oranges. content providers and the people. >> part of the reason is contract disputes happen because there is a set of rules against transmission and must carry that ge gets in the way of the negotiations. it is true that the shifting leverage in the negotiations has been a big part of it. netflix has the advantage because they have the original content and streaming two-thirds of the traffic. that is what people want. it is not anymore that isps say you do what we say. netflix say you take our content or equipment or else we are not going to give it to you. >> you think the isps can be trusted not to have any type of charges like this sth. >> it doesn't matter if you can trust them becau

retainer medicine and you by the service to the doctor on a monthly subscription like your cable bill, or netflixthat expensive compared to what you're paying health insurance today. get rid of the paperwork and hassles and do what i want. >> another stor straight want tk about is frankly blew me away. also for doctors. wikipedia. wikipedia which gets rewritten every single day, the facts are responsible, they change on-the-fly, can you believe this? it seems the worst idea ever. >> i don't believe it, haven't seen that. there is an issue in consumer information about health care, and a while back the department of hhs and medical groups et cetera tried to establish more authoritative sites, that was originally what healthcare.gov was about before it became obamacare. but i haven't seen people going to wikipedia. gerri: thank you for coming on the show. >> thanks for having me. gerri: we have other health news for one in 50 children suffering from peanut allergies. experimental therapy from the university of cambridge in britain said children with the allergies that amount of peanut flour. to ret

melissa: a switch to who lou or netflix.like an extra expense. >> so start by, if you could go to your cable company in mill in vacatiin mode and realize that you don't -- melissa: what does that mean? >> you can simply have it go dormant and not pay for one month. melissa: i did not even know you could do that. >> you can do that if you're traveling. will we say is get an antenna for about $20 turn on something like who you were netflix for $9 a month which literally save your run of hundred dollars a month right there. my husband will come in for saying the southbound. he. melissa: it's great for my business. i don't know when is let you say that. i love this one. he says switch to beer and wine instead of signature drinks. >> simple, but literally a cocktail is always three to $5 more than beer and wine. if you don't care, 15 tennant 25 plus dollars per night and you could be in a position to save a lot of money while you are going out and having fun. melissa: every financial person says, don't go starbucks. and i'm like,

creating fast lanes for sites they have business ties with, such as streaming video services like hulu or netflix. and slowing access to others, like amazon. it also means not charging more for youtube and other sites, based on their heavier bandwidth use, or in exchange for faster speeds. all of which, could affect what consumers see online how fast, and at what price. the principles were set out by the federal communications commission nearly a decade ago. the agency enshrined them in its open internet order, adopted in 2010. but verizon sued to challenge the agency's authority, and yesterday the u.s. district court of appeals for the district of columbia found that the f.c.c. acted improperly. the 81-page ruling said the agency is wrong to classify internet service providers as information services and at the same time regulate them as common carriers, as it does telephone and utility companies. while the f.c.c. decides whether to appeal, amazon and others are watching to see if the broadband networks impose their own rules, favoring some content companies over others. for its part, verizon is

or consider netflix. they rallied 50 points last week, it's a thing of beauty. i said buy it on a pull back if you were lucky enough to get one. netflix was down over 15 points at the lows, did you do it? did they think something had changed at netflix or did they buy high and kicking it out buying on weakness, buying on a pull back. that's no time, i mean, you know who says that stuff? people who can't time. we're better than that. we're just -- netflix is fabulous, 25 rally to a new high. 40-point swing. real money can be obtained by you. not pie in the sky. despite the people who come on and say, well, that's pie in the sky. no, final pull pack, make money. what happened last week when amazon was at 407 and yesterday it fell? nothing. more extreme cold weather, which means more not less online shopping. those are three of the opportunities, but the pull back comes, what happens? i spend a hundred pages in "get rich carefully" on how to buy stocks at better prices. >> buy buy buy! >> but especially comment you couldn't get in at a decent price before. the buye

netflix, they could probably afford to pay a little warm weather forcing the consumer to pay more orizon or whoever is dividing. you could make the argument that those names that you mention whether a facebook or a netflix, they become more powerful because of their price advantage because they got to scale earlier. i really think at the end of the day, it will be positioned that the consumer should not have to pay more just because of that are watching a lot. it comes down to how much you are gobbling up, how much broadband you are using? nielsen said we but eight hours a day. netflix diehards are watching a lot but not that amount. the technology, companies concerned about going to hd and ultra hd and also worried about compression technology. not eating up bandwidth. they are thinking about that in the same way. maybe it allows it to come to you without getting to this stop in the road where everybody is wondering if prices will change. >> might this lead to possibly if it rolls out, sponsored access, wireless and data access from larger media companies which could give them an ad

i'd rather go with the first or second previous sister like apple or google. netflix today which plays into that whole samsung universal on what we do with devices with his watch media. >>mark: will be back with us and i 15 talking winners and losers. >>: >>darya: more business. target [ female announcer we invited women t the not so pretty truth about their body whes. i wouldn't chang [ female annouer ] this test per was designed to reac like your skin if other body washes can strip this paper imagine how harsh they c be to your skin oh my go. [ female annouer ] dove is diffent. its breakthrough fmula changes everhing with the blend of gentle cleaers and nourishi nutrium moisture so what do you thinkow? definitely switching to ve. [ female announcer ] dove. this is re. ♪

in fact, the sun is not shine. >> you mean central bankers or netflix? >> central bankers. whole other issue. what kind of jobs -- where's the job creation and economic growth in netflix versus in ibm or caterpillar or deere or one of the big industrial names? that's always confusing to me. >> but you could argue while we had sort of an industrial revolution, now we have a technological revolution. you still have to build out fiber, broadband, you have to make the cap x investments in those the way you have with railroads 100 years ago. >> people are sitting home on their couch watching tv. >> think of the skill set, kelly. >> what's the skill set? >> valid point. >> rick, you know you need as much, if not more, expertise to build out some of the technological pipes. >> absolutely. that's why we have a structural employment problem not unique to the united states. globalization has shined a huge spotlight that if your skill set is to stand at an assembly line or take orders for hamburgers, you're going to get lost in this global economy. >> and kelly, i think this debate be

are they competed against apple or netflix? are they competed against google?t the year of marissa mayer. the come up with something. what do you think will be a surprise from yahoo this year? >> she get the traffic to go up. it is the largest website in the u.s.. now they're going to have to sell ads. there was not a story about momentum. it was on a story about audience growth. they will have to have a lot of advertising. --we see more apps on out yahoo weather? now, they're producing great apps. their sports app is great. they're now the position where they can monetize mobile which they could not have done before. >> what do you think when you hear the sighs monetizing mobile? >> i hate the word monetizing. parker from morgan stanley trying to monetize as a move forward. in terms of the share price reaction, it is all over the map. amazon is down by almost six percent. italy have futures are doing, it is down 10 personas on s&p futures. new have some data coming up this morning, including personal income and spending at 8:30 a.m. morning. we are around the

. >> she makes a good point about the controls, but some entrepreneur or netflix is going to do somethingess easier. this is very important, liz and stuart. you know, millenials live on netflix, my kids are on it all the time. some sort of device, don't go to the home theater. i invested all of this money on the home theater and they'd rather watch it on the portable. stuart: make it more accessible to my tv that's all i want. press one button and i get it. >> exactly. stuart: check the big board, where are we, down 170, back up after ten minutes only 38 points this morning. not much of a comeback. after the break, the future of the shopping mall. digital mirrors? a virtual reality blend between physical and on-line shopping? could this be what you see when you hit the mall ten years from now? after the break, someone who knows all about it. ♪ i'm phyllis and i have diabetic nerve pain. when i first felt the diabetic nerve pain, of course i had no idea what it was. i felt like my feet were going to sleep. it progressed from there to burning like i was walking on hot coals... to like 1,000

or something. why did you say that? >> if netflixo pay more, as other companies will have to pay more, how can that not impact, if they have to spend hundreds of millions more, whatever it's going to be, how can that not impact their costs and their bottom line? if you look at all the companies that would be affected, i would argue netflix is about the closest to a purist play. i want to point out something. netflix's stock yesterday was up even though there was this news. today, you had the buffering, it looks like some of the reality is actually catching up. >> john, who do you think apart from netflix loses out of all this and who wins? >> the biggest losers are startups. netflix may need to pay more money to internet service providers to ensure they have the best possible service, but the next netflix won't have the kind of cash it needs to pay those same fees. if you are an investor and looking at new startups and they're competing with major incumbents that have the partnerships with internet service providers, you will probabl

netflix. the shipping is free, and i would have to pay for prime, or the other way around. are getting something for a low price, compared to netflix. it is a pretty incredible bundle. >> what about the video service? they could spin the unit off and make it a separate company. >> they were asked about that yesterday and dodged the question, like all questions. i think it is an important development. endthey do it on the lower so people do not freak out at a $40 increase. $99 or $100. you could separately use the streaming video service for a comparable price to what netflix charges. maybe they go lower. potentially, you could get more people to join prime. they say, you are using our video service for this much more per month. you could come into the prime family. there is a huge opportunity to take business away from netflix in a hurry, if they were to split it out like that. this pricing change totally plays into the idea of netflix. i am sure bezos has netflix and his sites, for sure. >> what do you think of that idea? the think that is exactly direction they are going.

as for the idea of offering another higher priced service with more content or a version of netflix withed hastings said they're not interesting in either. he wouldn't answer questions about which european countries they plan to expand to this year. but said whether or not the likes of france or germany has competitive services won't necessarily influence their decisions. it's not that problematic. one interesting last tidbit is from mobile. there's a question whether netflix sees a huge amount of mobile use. most viewing is done on a big screen through the netflix apps on television. back to you. >> the latest from the netflix conference call. we're monitoring the ebay conference call. carl icahn, calling for a spin-off. josh has the latest from that call. >> on this ebay conference call, where ceo john donahoe, the battle lines being drawn here. talked about icahn. he welcomed icahn views and he would consider his nominees to the board. but his view, the board has a world-class board at ebay. as for the idea of spinning off paypal, donahoe, that the company plans to unlook value. but t

we have a terminating relationship, if netflix or google or whomever wants to reach the end user they only have one way to do so. >> thank you for joining us. >>> now the latest bombshell, the new york times reports reports that 100,000 computers in the world have been surreptitiously implanted with spy device he even when the device isn't connected to the internet. i'm joined by peter e.ckerslee. thank you for joining us. the nsa has its eyes everywhere but this one is straight out of a movie. the conventional wisdom is if your computer's off and not connected to the internet you're safe. this is code naw name quantum. how does it work? >> if you are a bank and you need a super-screwer computer, you're not going oconnect it to the internet. you are going to do that disconnection thing where you unplug from the internet, you do your bank calculations off line. here we have learned that the nsa will sneak a little device into your office inside a usb cable maybe and this usb cable will contain a tiny antenna that can broadcast to an nsa station maybe eight miles away and they can hack

great buzz, but profits are so tiny for the fourth quarter, or netflix earned less than $50 million onour cents of profit on every dollar of subscriber fees. that means netflix can't really fund expansion from its own revenue, it's free cash flow amounts to nly $5 million in q4, so it will borrow an extra $400 million for this quarter for that expansion. that increases long-term debt by 80%. netflix warns that rivals gearing up to catch it -- hulu, amazon, verizon -- but wall street is unfazed. netflix stock's biggest gainer last year, and it's up 6% or so since the start of this year. so far the message is why worry? tracy? tracy: yeah. ashley: no kidding. tracy: scary, though, do you get in it? >> it's such a momentum stock, you definitely don't bet against it, but do you really buy against a stock that's up threefold during the past year? aren't there other stocks that have a better chance of rising? it is the lead player in the segment. tracy: thanks, dennis. ashley: pope francis is proclaiming the internet is a gift from god because it facilitates communication. well, that's true.

i want to be able to watch netflix or watch al jazeera or whatever i decide to do. it's not up to them what i do with the band width because i already pay for the internet. but what they're telling their investors, the court and pretty much everybody but the politicians is they want to discriminate and get paid again. >> but the entities that are pumping content up on the web rather than you who is trying to consume it. >> they're paying to get that content to the web. they pay for all the points that it links u up to the providers. it doesn't seem to me that there is an extra charge they have to pay. and guess who is going to pay it ultimately is me. if netflix' cost goes up 25% that will show up in my wallet. these companies instead of investing in their networks, they're profiting from the scarcity. they're proposing these special deals that it won't count against my cap or whatever have you where in the end i'll pay any way where all i want is this amazing internet is where i can log on and find what i want. these are vastly profitable companies. cable companies

the reason netflix's stock went down because now the fcc will not be able to force internet carriers like verizon oro let netflix clog up their internet lines unless netflix pays more money. while the fcc doesn't like the ruling there is at least one former fcc commissioner who does like it and he joins us now. robert mcdowel, was appointed to the fcc by president gw bush and by president obama and both appointments were confirmed unanimously by the u.s. senate. so this guy plays it down the line. commissioner mcdowel, good to see you. you had a very interesting piece in the "wall street journal" let me premise your piece with a basic assumption. i think it fairs to say, you correct me if i'm wrong, that the internet is this magnificent platform that supports all kinds of businesses in a very innovative way, primarily because it is not regulated. is that true? >> absolutely. the internet is the greatest deregulatory success story of all time. it blossomed beautifully before there were net neutrality rules. it will bless many even more beautifully after this court ruling and unfettered internet is th

you're it reinforces his or her control. netflix is allowed to do better in time for our open on the new hall. the front is also running tights and they are using mobile dangerous high standards in order to pay the difference. which is poured into kentucky. great she is the more it was difficult to cross for people to fight don't manage to cross this river is border that captured by greek league east the trafficking in human life. she has developed across the aegean sea which is even more dangerous and every week he will make an official or just picked up the dead and drums of migrants. i have stated that it's very important he said thanks and the chapel no wrong. are you that have been watching report says he will fuss like at the station. in any decision to revisit it if you're a small eskimo village ominously on the fringes of alaska. for the six hundred inhabitants global warming is not a far off concept but an all too real. not me. sheesh we were sinking into the sea little more each year and seems destined to disappear the lit

or old people like me. um you know will die off eventually and the young people who were streaming house of cards on netflix or watching apple tv or going to be though you know they're going to inherit the earth an adult that the networks have a business model that contemplates that night and this is pretty much forcing them to contemplate that. now that's certainly a bit now it sits being concentrated in the second quarter. so i won every event from the area to see and hear in response to this case the supreme court they say quote we look forward to presenting our case to the center in the supreme court. we had every confidence that the court will validate and preserve. consumers are rights as a way that what it's about chris consumers right now it's about money but if he would they have a ploy to me the point is that the consumer. basically leases their equipment they're not stealing anything they're basically been the intermediary for the broadcast content. and the us of core of appeals for the second circuit agreed with that. on the people you tend to think about that to the intermediate appeals court h

netflix and other onliners are gaining share on cable. the firm that did that report withdrew the report today on controversy over weather numbers are right or not. there is observation on netflix numbers. david: dennis, i have to stay with you a second. look what happened with the stock after hours. ended day at 333 bucks a share. the bid is 380 a share. you mentioned huge subscriptions. it's a huge beat. great to beat on numbers but beat on the subs, a lot of people were saying maybe should low ball low on two million mark, they blew the numbers away. >> right. still trying to get the u.s. subscriber number if someone can flash or give it to me. remember something, that hbo earnings one 1/2 billion dollars a year in profit. charges 12 to $15 a month. netflix ins full year, $17 million in profit and charges eight bucks a month. it is not a profitable company but the stock is juggernaut stock because it keeps going up because it keeps going up. david: alan knuckman, we're seeing a huge after-hours increase, 15, 16%. will that hold tomorrow? >> well if you look at netflix the stock momentum has been amazing. it stairsteps every $40. hit as wa

or take netflix, this heavily shorted beast monster put up huge earnings and subscriber numbers after the close tonight. something you didn't expect by the miserable action of the stock. turns out the stock was wrong. and how fabulous would it have been if apple only took a tiny bit of the cash hoard and bought the company? that's what i want, growth, not more buybacks. or take ibm. oh, take ibm, here's a company that has warren buffett as its largest shareholder, a company with lofty goals that the oracle of omaha believes in. he's liked it because it's cheap and it has a massive buyback. buffett's an icon, ibm's an icon. last night we learned ibm's faltering and faltering badly. putting up earnings and sales numbers that were, i say, extremely disappointing. sure, the company might hit the long-term earnings per share targets, but it's getting there with buybacks, lower tax rates, gimmickry, but not revenues or cash flows. to me ibm has become the absolute opposite of what buffett normally likes. a company that's been outmoded by better mouse traps. i looked at a 1998 interview that

look at what we have done, what comcast has done, my kids don't bother with netflix or apple because the guide has been something like 3d graphics, recommendation engines, school navigation, getting that functionality right to me is a game set match because we got the content. liz: i would say cable was supposed to be the natural leader when it came to new developments in the sector and when you talk about what is really able to be accomplished people want for example to d b r something in their home but they end up in a hotel room or airport thousands of miles away and went on their mobile. >> totally right. moving content to multiple devices is something we do day. you can move content to your ipad, laptop for mobile phone. we are making that available. we don't have to be the first to innovate and make these things happen, we can follow quickly and have the content and customers in the bandwidth. that helps us to deliver these services better. liz: let's talk about programming in europe versus america. there is almost a new sense of excitement when it comes to the shows on amc lik