will pull its movies from netflix and launch its own direct to consumer disney branded service, saying they'll make a, quote, significant investment in original shows and movies for this new service. >> we had a deal that gave us the option to move our films from the netflix platform to somewhere else starting with the calendar year 2019 slate that's what we're doing. so we're creating a disney branded service that will have those movies on them, on it, and if you look at the 2019 slate, it includes "frozen 2," "toy story 4," and a live action remake of "lion king." so it's an incredible slate. >> now, we reached out to netflix to see if they had any comment. they responded saying u.s. netflix members will have access to disney films on the service through the end of 2019 including all new films that are shown theatrically thank yrough end of 2018 so making sure people don't panic about their netflix subscription no word on how disney's new subscription service will cost iger says today's announcement represents an entirely new growth strategy. >> you asked spec

we talked about the disney netflix deal 01’ no talked about the disney netflix deal or no deal. hares being volatile as investors try and work out what it means. it is great to have a stand alone service, but then you end up having to subscribe to every one of them? it is interesting. netflix has been one of the darlings of the us stock market. it has been leading the nasdaq and tech heavy index up and investors thought it was a one—way bet that it could only get better and better for netflix, but it is a bump in the road for netflix. it will be interesting to see how investors react and that model isn't as bullet—proof as some investors initially thought. all right, richard, thank you very much. he will return a lull bit later in the programme as we unpack some more stories in the news at the moment in business. still to come: we will get the inside track on the juicing business. you're with business live from bbc news. global security firm gas has announced increased revenue and profits in its half yearly report the strong results come despite an ongoing fraud investigation by

pulling out from netflix. disney less major providerfor the from netflix, this is one less major provider for the stream so first? from netflix, this is one less major provider for the stream so first7m is quite a big blow for netflix because the two companies had come to an agreement back in 2012 but that only kick in last year. net flick has hardly seen any benefit from the deal. now they are pulling all movies in order to start its streaming service. it makes sense for disney with all the movies and shows it can offer and in order to do so it is buying an additional state in the company to boost its video streaming. espn is going to start a video streaming. espn is going to starta similar video streaming. espn is going to start a similar service next year. espn has been losing a lot of money, particularly on the cable side, they have been cutting. what about some of those great movies like star wars? by not going to lose them just yet, netflix. disney says it. it from the new movies from 2019. so not the final sta

netflix. make the case. why couldn't disney if it had success with its streaming its own content expand and become a vibrant competitor to netflix? >> they can, but melissa what's really important is the first disney movie that hits their own service will be a movie that probably comes out in the first quarter of 2019. and be eligible to be on the new disney branded direct to consumer service, say by the end of 2019, very beginning of 2020. by the end of 2019, netflix we estimate, this is our numbers, should have about 158 million worldwide subscribers and they'll be spending well over $15 billion a year on content creation at that point, disney will have zero subscribers a good lead. >> in terms of the content, if people are going to go to where content is king, would you say disney has a better track record in terms of green lighting content? this content they've created, marquis brands, franchises netflix is still sort of scrappy. in the past year, we've seen more, we've seen increasing number of series canceled and their mo

very quickly, do you want to hit netflix i know you are short this stock or your firm is. >> netflix -- disney had been a good housekeeping seal of approval for netflix's financials when they first did the deal in 2012 now they are not having the content in 2019. so less of a good housekeeping seal of approval it will drive costs up for netflix because they are getting a lot of content, $650 million the company spent $6 billion on content. so they will have to replace that contents. they bought millers world. great. i want to see what is really in millers world before i make my total assessment on the deal because if the names that millers got that are making money, that is a little higher risk strategy for them but generally i like that deal but ultimately this is a cable story. >> all right rich, thank you. we'll see what happens in the session today. >> thank you very much for having me on appreciate it. >>> and when we come back, softbank continues its spending rampage. we'll tell you about its new potential billion dollar investment hey dad, come meet the new guy. the new guy? what new gu

disney has will offer animated films, sidestepping partners from netflix to comcast and directv. shares fell in extended trading, as did netflix. >> my guess is the distributors will look at this more as a threat than anything else. it is not intended to be that. we are reacting to marketplace conditions. taylor: global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. francine: thank you so much. investors are looking to friday's u.s. inflation numbers with bated breath. so our officials at the federal reserve, where the plan for three rate hikes in 2017 looks dead as the bank struggles with persistently low inflation. the market sees a 42% chance of another hike before the year is out. still with us, geraldine sundstrom at kimco. if you get inflation right, i guess you get all your trades right. asset managers are betting this way. which way are you betting? geraldine: for this friday number, we think the consensus is probably close to the right point. this inflation has been absent. we have b

battle between netflix disan disney heating up. shonda rhimes for an exclusive deal julia boorstin with more on that story. >> reporter: melissa, netflix's new deal with shonda rhimes is its latest in the battle l with hollywood studios as many of them pull back licensed content. shonda land, producing partner, will bring all their new shows to netflix while their existing hit shows "grayey's anatomy," "scandal" ad "how to get away with murder" will continue to air on abc. netflix has been ramping up deals with top tv talent including david letterman and the cohn brothers. the jerry sieinfeld deal announced in february. a rift between netflix and disney disney pulling its films from netflix to create its own streaming service. that news pushed shares town 5% last week. patrick mor ran saying the network will continue to benefit from shondaland noting the ongoing success of his shows on abc and numerous projects in development saying, "the shondaland imprint will always be an important part of abc studios. we wish them all the best i

abigail: let's look at disney and netflix. ompany said it is planning on streaming its own content to subscribers. bloombergey of intelligence says that is not the reason we have disney so down in the premarket. they had to make that move. what has disney shares down is the third quarter, fiscal third quarter, revenue miss, plus the fact that espn subscribers were down more than expected. netflix will be just fine over the long-term, considering original content. all sweeney says this is a move disney had to make. pain today, but paul sweeney says this makes sense. turning to online travel agents down sharply in the premarket -- priceline and trip advisor down after both beat quarterly estimates. priceline full-year outlook is less than what investors had been looking for. if advisor is cautious -- trip advisor is cautious on the second half of the year. a bloomberg analyst says problems are company-specific. one issue time both together -- spending on brand advertising. in anine just yesterday all-time high, but is set to open

netflix. what does this mean? cory: i think this is a big deal and we need more clarification from disney. t's remember that when netflix contract, it was a hit. they had to change their business model and go with a lot more original content. the markets were more forgiving. but netflix became a very different business. netflix has still had some of those great big hits. the biggest movies out there, they were saying, we will have "the avengers." we will have our own partnership with disney with "daredevil," and plannings," for a movie that they would hope would rival "the avengers." now it's up in the air. i would be curious to see what disney has to say about it. looked, a little defensive, saying we will still do business with our former andner, but doing business having their best movies and content on the platform are two different things. looking at headlines now. netflix says they continue to do business with disney on many fronts. bob iger on the call right now saying that is and pixar will not be on other web services, that disney is already working on new films and shows. does a n

shares of disney and netflix move lower on the news. erg press reporter spoke to bob iger right after the earnings call. eiger explained the profound shift in the media landscape that trigger disney's new move. >> we are going to continue to distribute the espn linear channels through the cable distributors. they been good partners of ours over the years and together we managed to create a highly profitable business. the distributors and programmers alike have been experiencing the disruption of the whole market is seeing and multiple businesses are seeing from advances in technology and changes in consumer behavior because of that. my guess is distributors will look at this probably more as a threat than anything else. what we're doing is we're reacting to marketplace conditions and taking advantage of the quality of our brand, the passion and product we create and the technology that enables us to reach consumers directly. >> is this the beginning of the end for the bundle, do you think? i think that's maybe a little bit too strong. i

treasuries picking up a bit as well >> and big news, disney says that it will pull its movies from netflix and launch its own streaming service, it will take several years to complete. disney making that announcement as it released quarterly results late yesterday we'll be hearing from bob iger and get wall street's reaction in just a few minutes. mr. wonderful may have his own reaction you would want disney to eventually sell to p apple >> i'm a disney shareholder. and this is between 95 and 110 every time we go through the espn cutting dispute which occurs every quarter >> and those concerns were brought up again >> 28% decline is probably one of the fiercest we've seen, but we know it's coming. and here is the response okay, we'll just serve it up ourselves directly to you. that is an interesting outcompany, but it's not just for disney for netflix, it means that netflix has to go this to the movie making business which is a crappy business. since the beginning of time including all the hits and losses of color, sound movies, the average return is about 7% >> i was a little surprised th

next, disney's which is off on netflix. if the new streaming services can handle the competition. this is bloomberg. ♪ ♪ this is "daybreak asia." disney reported a rare drop in revenue last quarter. it is also announced it is dumping a deal with netflix to begin streaming its own entertainment and sports directly to consumers. chairman and ceo bob iger told us it was a strategic shift. my guess is distributor's will look at this more as a threat than anything else. is not intended to be that. are we are doing is we reacting to marketplace conditions and taking advantage of the quality of our brand, the passion of the product we create , and the technology that enables us to reach tumors directly. you look at disney's business, except for the parts, virtually all them reach the consumer through third-party conservators. big-boxverything from retailers to motion picture theaters and i could go on. this is an opportunity for us to reach the consumer directly and that is important step for the company in terms of growth. >> help

the tv bundle and enable it to launch an espn subscription service early next year disney will no longer rely on netflix. all of it's disney and pixar to then launch it's own app. >> we'll be making a significant investment in original content both movies and television series for this platform, exclusively. so if you want to -- if you're a family or you're interested in the disney brand you want to subscribe to extremely rich, robust, disney-branded service, you'll be able to do it. >> now disney isn't the only one betting on going direct to consumer, just this monday, cbs boasting about it's cbs all access and showtime streaming services on track for four million subscribers. that's faster than expected. it's new upcoming star trek show will help add subscribers to those services as well and netflix seems to have anticipated studios pullback by ramping up it's spending on originals. targeting for over half it's content of the original, despite the fact that it costs more up front. now netflix took perhaps it's biggest step towards independents from the movie studios, just monday, buying comic company

netflix including toy story and frozen. this is a major step in cutting the cord. a gamble for walt disneynd the cold shoulder for netflix in the strongest cutting of ties between a hollywood studio and the streaming service so far. disney chairman and chief executive bob tiger announced the end of its deal with netflix in favor of starting its own streaming venture. investors, he said it has been clear to us for a while that the future of this industry will be forged by direct relationships between content creators and consumers. disney w was one of the first studios to forge a d deal with gaveix in 2012 when they the service first priority to stream its films after cinema release. in a statement, netflix confirmed that disney content will be available through the end of 2019. it will continue to produce shows like jessica jones using marvel comics characters. the move is a strong indication that hollywood is beginning to feel the pressure from netflix, a service which plans to spend $6 billion on content this year. a sports cable tv network espn will also launch a standalone streaming se

in santa cruz county, devin fehely, kpix 5. >>> say good-bye to your favorite disney movies on netflix. disney announced it's pulling all its content from the streaming service in 2019. that's because the company plans to launch its own streaming service. after the announcement, netflix stock dropped more than 5%. disney's fell 4%. disney also plans to launch its own espn streaming service early next year. >>> in ventura county a mountain lion has crossed a freeway. the cougar known as p55 crossed 101 near thousand oaks and marks just the fourth known successful crossing in the area. researchers recently tagged the mountain lion with a gps tracker and have been monitoring his movements. they say p55 continues to roam a broad stretch of ventura county. >>> it is now 4:56. with threats from north korea against guam, many people across northern california are on edge this morning. what their loved ones living on the island are saying about the concerns of an attack and how guam itself is responding. >> reporter: and crews are still out here in campbell working at the scene where a crane c

that is one where can be long disney and short netflix. >> thank you. quity armor investment. >> still ahead, disney is not quarterly results also out after the bell. from new york, this is bloomberg. ♪ is this a phone? or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. you're searching for something. whoooo. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is. because tripadvisor now compares... ...prices from over 200 booking... ...sites ...to save you up to 30%... ...on the hotel you want. trust this bird's

will continue to have access to disney films through the end of 2019. netflixegan in 2016, a multiyear deal for disney film. the deal will end. shares took an immediate head after the disney needs dropping about 4%. lauren: disney and netflix both down this morning. we hear david letterman is making a come back with a brand-new show. reporter: and netflix announcement has picked up a new show by david letterman. former host of cbs's late show. six episodes each in our log and will feature an interview with lettermen and a guest as well as a segment in which he asked or is the world. letterman says he's only in the planes page right now. no release date has been set for his new show. trinity is probably regretting retiring one of the most jaw-dropping news cycles we've ever had in our nation's history. lauren: although, just enjoy life. he's got all that money. he's going to be able to keep it. that was his deal with netflix. i don't know if you're supposed to take people like david letterman seriously. lauren: is a great interviewer. we have got a lot more comi

whether it's cable providers or the likes of netflix mario surface report. a gamble for walt disney and the cold shoulder for netflix in the strongest cutting of ties between a hollywood studio on the streaming service so far. disney chairman and chief executive bob i guess announced the end of this deal with netflix in favor of starting its own streaming venture. speaking so investors argus said it's been clear to us for awhile but the future of this industry will be forged by direct relationships between content creators. and consumers. disney was one of the first studios to forge a deal with netflixx. it's a thousand and d twelve when thehey gavehe servicece first priority for streaeamg its films after cinema release. in a statement netflix confirmed that disney concert will be available on the service through the end of two thousand nine seeing well it will continue to virtue shows like jessica jones using marvel comics characters. the move is a strong indication that hollywood is beginning to feel the pressure from netflix a service with one hundred million subscribers which pl

disney pixar films. the only one not happy is netflix, disney will be pulling all of its content off of netflix in 2019.what channel you want and go get it. >> people will be watching to see if that succeeds. the future, marine one helicopter makes its inaugural flight, it is undergoing 250 hours of testing before donald trump can climb on board. this is an artist's rendering of it. >> this replaces the current marine helicopter fleet, one billion-dollar overhaul approved it during the obama administration, will begin service in 2020. heather: remember when tiger woods went into a breathalyzer barefoot, we remember that incident, the legendary golfer's arraignment has been set, he will not be there and what it means for the case. >> does your passport contain one capital letter, a number? your strong password isn't that strong at all. see about that coming up. ♪ when coughing keeps your family awake. breathe easier with vicks vaporub. soothing cough relief that starts working instantly. rob: a fox news alert, the world on it is donald trump threatens to unleash fire and fury on north korea. heather: rut

netflix. this after disney's announcement they would pull their content from netflix.or being here to break this down. what does this do you entail? abc gets to keep some stuff here to gets what and where is the content going? >> all of the shows that shonda has on the air that people like staying on abc and are not going anywhere. shonda will continue to work on them. i don't know what her day-to-day involvement will be. all of the new shows that she develops will go to netflix, or the very least netflix gets the first crack at them. she will have some shows that continue on abc for however long, but the next big hit, if she has one, will be on the world's biggest dreaming service. >> there are shows in the pipeline she has for abc. you'll be working on some new shows that will appear on abc while coming up with new ideas for netflix. do we have any sense of the timing on when her shows will appear on netflix versus which of these projects are already in the pipeline at abc will appear on the air? lucas: the netflix shows will take months or years. tv development is a

mark: disney planning a future without netflix.is aimed at embracing cord cutting by reaching its customers directly. we will have the full details, next. plus, we are awaiting oil inventory data in just a second. crude oil looking like this. it is up for the first time in three days. the avi data showing crude marginally boosting its estimates for american production in 2017 and 2018. we are awaiting that inventory data in 4 minutes. 1%.e oil up by 4/10 of this is bloomberg. ♪ we check our phones 85 times a day. so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. mark: back from 's world headquarters in london and new back from-- bloomberg's world headquarters in london and

is there a problem for netflix, the fa ct is there a problem for netflix, the fact it will not be working with disneythink netflix is already past that stage. it has been an incredibly bold company. when they first said they would spend hundreds of millions of dollars, billions of dollars, on making their own co nte nt billions of dollars, on making their own content as well as buying it in, everybody thought it was a bit bonkers, it has turned out to be a pretty wise move. google, there was a big meeting to be held about gender diversity but it seems like it has been cancelled. what is the update? extraordinary upheaval over this week. it is a mark of how big a crisis it has been for google that when this memo we merged questioning their diversity policy, the chief executive broke off his holiday, came back and said we would have a big meeting on friday, he has cancelled bats because there has been a huge backlash, which is quite scary to people inside google, with pictures and details of people published online on conservative websites. there is a mood of extreme disquiet within google that they wi

. >>> tonight, disney says it is breaking up with netflix. disney will pull its movies from the steaming -- streaming service in 2019. why? disney plans to launch its own streaming service. after the announcement, netflix stock dropped 5% and disney's fell 4%. disney also plans to launch its own espn streaming service next year. >>> here is a new tool if you are househunting. next door, the social network is launching a device to see reviews of realtors and check out homes. >>> househunting has practically become a competitive sport in the bay area. there is one city at least, where you can still find a bargain, but maybe not for long. only on 5, betty yu shows us what you can get in richmond. >> reporter: it's one of the few spots in the bay area where you can still buy a home for about a half million dollars. this home features four bedrooms, 2 1/2 bath, and a low maintenance backyard. >> granite countertops, stainless steel appliances. >> reporter: it is on the market for $538,000. just above the median home price of about $450,000. that's

, a lot to go after disney, the market doesn't like it. netflixownside, if disney is taking movies away from netflix, that's not good, it's down 1 and a half percent. apple, retreating from its all-time record high that it hit recently, well above 160, it's not down much, 21 cents leaves it at $159 a share. that's what's happening in the very first minute and a half on this wednesday morning. who is with me. ashley webster, e-- elizabeth peek. i was expecting a sharper drop for the dow this morning, we didn't get it, we are down 65 points. there was talk about this being a black swan event, is the market telling us that this is not at this point a black swan event? >> that's exactly what the market is telling you, don't forget if earnings are there, earnings are good and guidance is good, then you have a bet to the future, when the shooting actually starts, thin you've got a problem so traders right now literally, stuart, can't afford to do anything other than profit-taking so they're not going to do much of that because they know the future is wh

. >> that is interesting, what happens with companies like disney and netflix, stock don't trade with equity, disney needs to unlock that. they can no longer give the keys to castle away. gerri: they are trading down. >> yes, they have not figured it out, they are behind curve. netflix has created its own content, and they carried did disney content. it sold off in unison, there may be a fight. gerri: at end of the day, espn a big part of the story, it was considered the most single important thing in world in television, now not so much. >> important stat is espn, makes double revenue when you combine lucas film, star wars, azusa marvel -- as well as marvel and parks and resort, this is the cash cow. gerri: not so much right now they can't figure it out, they lost 10 million subscriber, it happens because of the way we consume contend, we're a binge on demand, and sport season are longer there are so many bowl games, people want shorter, faster on demand. gerri: that is why i like hockey it fast. >> and fights. >> 20 century fox out -- 21st century fox out with earnings, parent of th

disney is taking a lot out of the dow. we will talk more about netflixord cutting debate and all of that as we continue here. thanks a lot, charlie, appreciated. does that mean we will have these disney challenges netflix on the streaming? more coming up in just a moment. poor mouth breather. allergies? stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose up to 38% more than allergy medicine alone. shut your mouth and say goodnight, mouthbreathers. breathe right. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] mmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are

disney movies will stick around netflix until 2019. at's when the disney service will launch. >>> walmart may monitor your facial expressions as you shop. walmart recently filed a new patton for a video system. it will keep track of customers expressions as they shop and use that information to dispatch help as needed. walmart says it will help them stay on top of customer service issues. >>> our time is 5:24. a new report shows the number of people being bumped from flights in the u.s. is at its lowest rate in 20 years. the trend follows a violent removal of a passenger from that over booked united airlines flight in april. you remember this. the cell phone video showed officers dragged dr. david dow off that plane when he refused to give up his seat. that incident caused a huge public up roar. and also a big backlash against united airlines. >>> the transportation department says just one in 19,000 passengers was kicked off a flight during the first six months of this year. the lowest number since the government started tracking this

netflix went to disney because they needed content. netflix is creating more of its own content. n buying a company with their own streaming technology. this continues to intensify across all these different platforms, right. but youtube remains, you know, the 800-pound gorilla. people spend a billion hours a day watching youtube videos. a billion hours a day. so facebook has advantages that they can exploit to try to expand to get into that territory. but youtube at this point has the big vac. >> what kind of content is in that will be streaming on facebook. >> at this point they have some premium content. they are paying some folks for some content but a lot of it is by the kinds of creator that have historically populated youtube that facebook will exploit. now, one of the things i spent time with mark zuckerberg earlier this year and he is constantly iterating, he's continuing to move and improve so wherever facebook is today, that doesn't mean they're not going to be someplace else tomorrow. >> what will the networks do. >> the networks are at this point what is the differenc

disney come after netflix. >> that would be the disney-branded portals of content, not the sports becauseix explicitly -- i know that there's a piece out thereto and disney is a service. you can subscribe to disney in every one of its forms, including them to parks. that's down the road and the bamtech addition, they have been very high on that for a while. >> disney had to announce something and they did the espn announcement makes total sense so it's not surprising that netflix is down. netflix has had it to themselves for a long period of time. you're going to see cbs and abc and disney they are all going to jump in. >> and this is a way for them to really differentiate themselves. think about the content that disney can be -- >> that's why novelsics is getting hammered. >> let's hear more about this straight from the source and get back to our julia boorstin for the first on cnbc interview with disney ceo bob iger. julia, take it away. >> reporter: thanks, sara and bob iger, thanks so much for joining us ahead of your earnings call. really appreciate it with this big news today about

a move that could spell the end of the netflix hegemony in the. disney already said it intends to pull most of its movies from the streaming giants and offer future content exclusively on its own platform. a new strategy that highlights the growing influence of online streaming. to the detriments of more traditional media. in the u. s. fifty million people now have a netflix subscription. against forty eight million for cable television. and it's not just tv as streaming has started playing an important role in social media. facebook began rolling out its new v video app on thursdsday. a service called watch which combines streaming with the life chats. making for a more dynamic viewing experience. and with its two billion users facebook hopes it can startt challenging some of it's well established competitors. such as google owned youtub. to france next where a one time fixture of the famous french riviera psp pulling up anchor. luxury yachts maybe setting sail for cheaper sure soon that's what local officials fear as new regulations have made docking i

was time for us to take a bigger step in that direction. >> disney's stock is sinking on revenue that missed wall street's expectations. netflixsuffering on disney pulling its film from the streaming service starting in 2019 as disney launches the own disney brand and content app that here. aikers says they are evaluating the possibility of launching star wars apps and prepared to potentially break espn free from the bundle >> this lays the groundwork for the company to do a number of things, it provides us with all sorts of optionalty we haven't had before you know, it's one thing to say you're going to be in the business of being direct to consumer or over the top it's another thing to do it. and to do it, you need a really strong technology engine >> reporter: no word on how much disney's streaming services will cost, but iger says they will price them to reach the maximum number of people sara, over to you. >> julia, thank you for the set-up for more, we'll bring in inside.com founder and ceo, jason, you just heard julia say that iger describes this as a major strategic shift in the way we distribute our content. wall stre

disney movies will stick around netflix until 2019, when the disney service will launch. >>> netflix ing disney but gaining david letterman. he will host a new talk show. it will feature one depth interview in each episode and in the field segments. the first season is expected to have six episodes. it should launch in 2018. >> the time is 7:57. a new threat by north korea. we will tell you how the white house is firing back as the tensions continue to grow. >>> and san francisco's police chief has a message for officers wearing body cameras. how he is addressing an issue with the current policy. >>> fog has lifted westbound 24. you can see traffic is a little bit slow here in lafayette, heading over to orinda. >> an american territory on high alert this morning after the president's warning to north korea. >>> a toddler wandering the streets of san jose. now the hunt is on for the child's parents. >>> this is ktvu mornings on 2. >> good morning, everyone. welcome back to mornings on 2. it is wednesday, august 9th. i'm mike mibach. >> i'm gasia mikaelian. it is a foggy start to the da

. >> a couple of weeks ago we spoke about disney leaving netflix, apple they have to do it.hink about itune they charge $1.45 for one movie. apple is saying we'll put join the party, and see where we can go with this. gerri: this is my question, this is pairly a dent in their balance sheet -- barely's dent in their balance sheet, is it enough to make a difference in the business? will it give them enough money to really play. >> it shows a commitment, i know 1 billion out of 260 billion does not seem like a lot, it is pretty big, it all about content. content is killer right now. gerri: they are really hiring. >> i know, if you want to be a producer. gerri: i'm going to go write scripts, i don't know about you. netflix spending $7 billion, amazon 4 foy 4.5, time warner, s real money, are there other ways that play this other an apple. gerri: >> netflix has a good mote. and defenses and can protect that. but you know, you can count on apple, it is going to be interesting to see what content they come up with, we have to make a decision, disney content, apple, netflix, all 3,

disney is looking to be king of the streaming world. after announcing the move to start its own streaming service pulling all the content from netflix. it's platform in 2019 will host popular disney and pixar movies as tv programs while launching a separate branded service for espn. and while netflix may be losing disney, they are gaining david letterman. david letterman, that is, they're gaining letterman with a longest serving host in late night tv history making return launching a talk show on the streaming net flex, three years after signing off from the small screen. we've been missing him. >> hope he keeps the beard, too. >> just ahead, the cyber attack that has hollywood scared straight. there was no winner in last night's mega-millions lottery. that means the major combined major jackpoted ballooned to $700 million. there's a special essence in herbal essences it's bio:renew a blend of sea kelp, aloe and antioxidants that help bring your hair back to life. herbal essences. let life in. wowe run marathons... ...companies... ...solve problems. how? we eat. every. single. day. we eat, and we own it. ♪ so find a venus smooth that

netflix. now, this disney split with netflix i think is earth shaking.nd netflix stock is going to take a bruising for a bit. but you know what? how about this what's the possibility that there is room for everybody? >>> i like to say there's always a bull market somewhere, and i promise to find it for you right here on "mad money." i'm jim cramer, and i'll see you tomorrow t. our phones have evolved, isn't time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. xfinity mobile. call or go to xfinitymobile.com. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ and i'm tanecia. (all) and we're from hampton, virginia. (lakesha) we're basically sisters. we're best friends attached at the hip. looks like we're ready. we've been event planners for over ten years. we were looking for something simple and versatile that we could add to recipes t

. >> 3% is nothing we see that in netflix today, we see more than that in disney that's just nothing. i'm not worried about that 10%, that's an issue let's go to josh's point how many times we've seen that over the last few years. and we've had v-shaped recoveries look, i'm not somebody who just whistles by the graveyard. so if i thought there were a setup for a sustainable bear market or correction, and of course, those you never see, except in retrospect, i would be really worried so here's how i'm playing it i continue to stay in cash john and i talked last week on the show that we sold netflix for no other reason that it had such a good move we, of course, didn't see this coming so i think you have to be disciplined and take profits you don't keep raising your price target because the stock keeps going up and if you have that cash in the sidelines, and i would say i'm about 30 to 35% cash you have an opportunity to take advantage of the volatility to get that good entry point. >> i would take the other way. i think what you should be doing right now is using opportunities, using s

this is a seat change for disney more so than for netflix they've been on the content kick they've hadn is part of that thesis of course, but for disney, this is a sea change, it's changing over the next few years, how their business model works which is relying less on the cable distribution guys, and also netflix and then doing it on their own big question mark as to whether they can execute on that >> i was saying yesterday, what took disney so long? >> what took them so long? they're one of the biggest players out there in the media so this could be the start of other things to come whether it's via come or cbs has already got their all access thing. time warner now part of at&t, there's a big chance that they go more over the top as well you kind of -- everyone was waiting for the one big player to make this jump, now that they've started to do this, chance all the others will. >> 400 cable channels to -- >> to 1,000. >> streaming services. >> and pay for them all individually and then like wait a minute, if i can pay for all of these -- >> wishing we had the old days back >> we'r

netflix. this shows the battle between disney and netflix is only heating not. disney said last week they were going to have the streaming service. anyway, there you go. obviously, netflix is one of the stocks to watch today. that is big news but overall when it comes to technology, the rally had kind of been under pressure. now we wonder if the tech sector in general will be back on track. let's bring in the chief analyst disruptive tech research. the question you have the nasdaq down three weeks in a row. it seems like maybe have that today. >> last time we run here we were talking the nasdaq was a bump in the road. it is all systems go coming off of the second-quarter earnings report. everyone knows the stocks which have been the bellwethers have the bellwethers have been the market for nasdaq here put it to result in apple and netflix for the big surprises. they absolutely torched expectations. we saw both of their stocks rally as a result. the leadership as well intact and we probably need to prepare. it's a bold prediction for the first trillion dollars com

disney pl pulling the plug on netflix. does this hurt netflix. initial cut was there but does it hurt in the long run. disney shares are down too. so in 20 19 disney is taking most movies and pulling them from n own subscription streaming service and before that in a couple months from now espn, which disney owns they'll have a streaming service for 10,000 live sports on that network too. espn has been a weak spot one of the reasons disney profits were not good and one of the reasons they're making changes. i'm not sure 20 19 i think it's a live ak remake of the line king. >> right. >> toy story 44. these are new movies coming out. will parents go out and buy the dvd since not on netflix or stream with disney. >> you're aging yourself so much. >> we don't have a dvd player. >> i went to watch dvd the other day and found there's no machine. >> i'm fascinated by espn deal i'll keep my cable because i love live sports. if it's another oching that that may be breaking point. >> cutting the cord. >> never know. >> gm getting to robo car employees. >> h

as you can see, netflix shares fell. , if knew this was coming not necessarily with disney, then all potentially capable of doing this, pulling out. that's why netflix hasn't spent so much money on developing its own content. netflix knows that is for the future is. it's profit model where it provides content from other creators, that has a limited shelf life so they have to be shifting. the other networks are having to compete, as well, for cable wars fornd bidding sports rights, because that's where the real money is in this game. rishaad: absolutely. this is an upcoming industry shakeup. who is the winner amongst all this, is there anybody that comes to mind? once,for a while -- for the winner is the sports fans. all of this competition, it is basically going to make sports cheaper to watch. if you are a sports fan in particular that likes one sport, say you just have to see the premier league, that is public in a cost you a little bit less to watch that because of the competition, because so many networks are trying to establish themselves and these over the top players are train

then on the other side, you've got the sprints, t mobiles then the content companies like a cbs, disney, netflixng is basically, that the cable and wireless business is not growing, so they need to either come bib bin or a media company. consumers and companies want a bun l to offer fcc is is friendly right now then you've got these personalities. right, his son brian roberts. you've got john malone they are all deal makers, right? then on the other side, you've got these ceos that may be coming near the end of their tenures. who are looking for a signature deal and there, you've bob iger les and lowell mcadam, the ceo of verizon i feel like a seismologist looking at all these, i can see the tremors and listen, this is the last opoint i'm going to make over the past four years, there's been $300 million a year of media and telecom m&a deals so far this year, we've only had 100 million. discovery, scrips, kkr, small potatoes basically, it's the sprint guys saying it's going to happen. that message is not to the shareholders that you better get in there but does it matter though that we don't know

segment is because disney and time warner already have pipelines of comic book material they can use. right now, all the tv shows and movies netflixost of them are from disney. licensesmovies netflix after they appear in theaters. own pipeline its of original comic book material it can develop, own, exploit down the road if it wants to make t-shirts or a theme park ride. emily: bob, is this a smart deal? bob: i think it is. you mentioned netflix as a media company. that is different than netflix as a streaming company. to become a media company, they have to buy and create original content. if you want to create stickiness in your service, that is the kind of move you have to make. we see amazon and netflix doing this. i expect we will see more of this. this is a challenge for apple because it is not clear what their commitment is yet. emily: when i spoke with tim iok after earnings last week, asked him about their video and original content efforts. he said it is very experiment to. -- experimental. what do you think this means for other big media players and unconventional players like apple? >> i think the traditional guys, dis

. >>> enjoy your disney flicks on netflix while you can. while you can. arting its own streaming service, a natural step with a huge library of micht oftentimes you have to buy instead of rent a film. rent a film. disney will stick around netflix until 2019 and that's when the disney service will launch. >> don't forget about the issues that will create traffic problems in san francisco. san francisco. thousands attending the music festival in golden state park, a tribe called quest, lorde, metallica and the whoa who. e whoa who. always breds out crowds, thursday through sunday. hrough sun expect traffic. expect traffic. the three day tickets are already sold out. >> and lady gaga going to perform, 7:00 at the arena, if you're going to be in that area, give yourself some extra time to get in and out of the area. >>> if you bring your own food for a game, it is -- 27th out of 28 in oakland. signs of vermin and food kept at unsafe the presidents. presidents. at&t, 14th in the report, 18,s of vermin infestations. two stadiums not included in the study. >>> tw

disney is ditching netflix and that could potentially affect how you watch disney movies and shows.ndon is here with us this morning. good morning, landon. >> hi, tracy, good morning. disney plans to launch its own streaming service for disney and pixar movies and shows in 2019, but that's the same year their deal with netflix ends. they say the deal will remain until the end of 2019, but movies that year such as "frozen 2" will show up on its own service. no word on what will happen with marvel or "star wars" content, but they said the move will not affect the marvel shows currently showing. >> walmart is going to use scanning tools to show how happy heir customers are. how does that work? >> happy or sad, tracy? walmart shoppers may soon not even have to ask for help. a simple frown could summon an employee for assistance. a recent patent filing says the retail giant wants to get a closer look at customers. it's a video system that keeps tabs on facial expressions and scans for people who are frustrated or unhappy so help can be dispatched. floor managers could also use the system

this means it will end its present distribution deal with netflix. disneying service in 2019 starting in the us and then expanding it globally. shares of netflix lost 3 percent in after hours trading. we will have more on that and the other business stories in 20 minutes. to venezuela now where fresh protests have spread in caracas after four months of clashes between government forces and opposition demonstrators. the un has warned of widespread and systematic use of excessive force being used against protesters. yet many who try to cope with a terrible economic crisis are now questioning the effectiveness of blocking streets as a way of protest. daniel pardo sent this report from caracas. it is just another day of protests in venezuela. people barricading the streets to oppose the government of nicolas maduro. but these things are divided the opposition. why do you insist in blocking the streets? translation: so that they see we do not want them. that we want them out. they have to quit now. this is a dictatorship and we will not allow it. daily life has

i know you own technology, do you also own netflix and streaming media and disney? ompanies were not paying dividends. this is going to be interesting because netflix is one of those companies that's held up very well and let's see how they go and if others plan to follow suit. maria: what about the broader market? >> the first half of this year has been really good relative to the last couple of years. that's been very supportive. the market is expecting a lot of things to happen on the political front and the question whether or not they are going to happen, one that will be more important this year. i also in second half of the year, let's see what people start saying about next year. i think that there is some concern that valuations are at pretty high level and you have to see continued growth or changes on the other economic fronts. mike: i agree on the growth front. i would disagree on the political front. i think where we are right now, the market is supported at these levels by the earnings growth we have seen. if you get something out of washington it would

. >>> say good-bye to your favorite disney movies on netflix. announced it's pulling all its content from a streaming service in 2019 because the company plans to launch its own streaming service. after the announcement, netflix stock dropped more than 5%. disney's fell 4%. disney also plans to launch its own espn streaming service next year. >>> new this morning, santa rosa is cracking down on crimes associated with the homeless. the city council is sticking to its plan to treat aggressive panhandling, smoking, drinking and urinating in public as misdemeanors. they will carry a fine of $1,000 or up to 6 months in jail. supporters say the penalties may give people the incentive they need to accept housing and other aid. but critics say it's criminalizing those who live on the streets and more resource are needed instead. >> right now, we lock our bathrooms at dusk. so folks don't have a choice. >> criminalizing homelessness is putting people in jail for being homeless. there's no plan to do that in santa rosa. >> the police department and the di

they said the platform in 2019 will host disney and pixar movies as well as tv programs while launching a separate service for espn. while netflixng disney, it is gaining a letterman. david letterman. the longest serving tv host is making his return launching a tv talk show on netflix streaming in 2018. this comes three years after he signed off from the small screen. >> a lot of fans excited to have him. >> hollywood is scared straight. first there was no winner in last night's mega millions lottery and now a combined jackpot at $700 million. make sure you get your ticket. there's a special essence in herbal essences it's bio:renew a blend of sea kelp, aloe and antioxidants that help bring your hair back to life. herbal essences. let life in. wowe run marathons... ...companies... ...solve problems. how? we eat. every. single. day. we eat, and we own it. ♪ so find a venus smooth that contours to curves, the smoother the skin, the more comfortable you are in it. flexes for comfort, and has a disposable made for you. skin smoothing venus razors. >> it's making some in hollywood remember the dark days following the infamous sony ha