joining us, alex barinka and lucas shaw. lucas, i will start with you.do you make of the timing? why now? i know we were expecting this, but now we know. lucas: the timing is -- spotify has planned to go public either late in 2017 or early 2018. it really came down to when they could get their books in order. they felt they could close their books from an accounting perspective in just a couple weeks. financially, they have really never needed to go public just to raise money, which is why they are taking this unconventional path of a direct listing as opposed to a more traditional ipo. they were under pressure to do so as quick as possible to get out from underneath the terms of this convertible debt that they had raised. so, it was really just a matter of the fastest they could do it that they were comfortable with, they were going to, so now they are clearly comfortable. emily: alex, how is a direct listing different from a typical listing? alex: in a classic ipo, you hire bankers. they help you go out on a roadshow, craft a story, figure out what sor

we are joined by lucas shaw in los angeles.s is a selling point to investors ahead of the ipo? >> spotify has tried very hard to convince people that its profit margins are going to improve. the big challenge for them, as successful as they've been in creating this market for on-demand music, and really lifting the record industry up after years of decline, the company itself is not profitable because it pays so much to rights holders. all this other types of programming like news, podcasts, culture, are ones where if they are successful, they can bring in new customers, sell advertisements, and they don't have to spend as much and it will improve the margin picture, which is of big concern, both for the current investors and future shareholders. selina: the cost of music rights is incredibly high. spotify has been steadily diversifying. what are some of the other projects they have been working on and how successful have they been? reporter: it's been mixed. for the past few years, they have dabbled in video and forms of audio

emily: that was entertainment reporter lucas shaw and ipo reporter alex barinka.viewed the world's biggest gadget show. why top tech companies are returning to the showroom floors after several years of low attendance. and if you like bloomberg news, check us out on the radio. you can now listen on the bloomberg radio app. this is bloomberg. ♪ ♪ emily: lyft is set to show off a fully automated ridesharing service next week. they are partnering with a self driving software company when delphi split into two companies. lyft and uber are betting driverless vehicles will be a pivotal point to their business prospects. last year, lyft announced plans to allow self million to -- self driving developers to plug into their models. and staying with ces, google is setting up a booth for the first time in years. executives will be roaming the showrooms. we caught up with mark bergen for all the details. >> we expect more of last year, which was home speakers and alexa were the big part of the show in las vegas. now there are a lot more competitors. google is pushing out its

reporter lewiss shot joins us from--lucas shaw joins us from new york.flix's thesis on spending more money on original ramming -- original programming continues to work. look at the slate of shows that they released. they had a new season of stranger things, the crown, new shows in the punisher, godless and mine hunter. they had this new movie, bright. flex does not release ratings but based on some of the data that nielsen released about stranger things and the crown, those would rank as the biggest hits in the u.s. that explains how the add more than 8 million customers and a quarter. take a look at this chart. it gives you a look at subscriber additions and the performance of this stock relative to that. it seems that the stock performance is becoming divorced from how many subscribers they had just they add. subscribers are betting on this business is a whole without regard to subscribers. if you look at the actual fundamentals, netflix cash flow was -$2 billion. they rejected it was going to increase or decrease. they projected it was going to incre

where -- we are joined by lucas shaw in los angeles.eous is listeners ae this to investors ahead of the idea? >> spotify has been trying to convince investors -- as successful as they have in at creating this demand for online music, the company itself is not profitable, because it pays so much about to rights holders. these types of programming, whether it's news, culture, podcast, video, where are if they are successful in them, they can bring in new customers, sell some ads, and they will have to spend as much. that will improve the picture and futurers shareholders. >> spotify has been steadily diversifying. what other projects have been they working on, and how successful have they been? >> it has been mixed. in the past few years, they have dabbled in audio and forms of audio that are not music. things like espn, funding original video series. none of the products originally worked. the executives are pretty aware of that. podcast have held more promise. spotlight is trying to fuse these two ideas together, where you take audio an

lucas shaw, thank you, bloomberg news entertainment reporter.ead, hong kong aiming to reclaim the crown for a global ipo fundraising, particularly from the new economy companies. we will ask where that money might come from. this is bloomberg. ♪ is bloomberg. ♪ betty: we are counting down to asia's first major market opening this morning. japan just about to go online for the first time in 2018. looks like we will see quite a today. nikkei futures pointing to a higher open at one point up, almost 2% following gains here in the u.s. that is a live shot right now at what is happening in the tokyo stock exchange. g,ey will hit the gon perhaps, to mark the start of trading in 2018. this is "bloomberg daybreak: asia." i'm betty liu in new york. yvonne: looks like they are about to send off some fireworks. [laughter] i'm yvonne man in hong kong. we will get to the market opening in a bit. let's take a look at business flash headlines. bhp is in talks with the future of their iron ore joint venture in brazil. sources say said the possibilities include

carol: here is reporter lucas shaw. m atlanta who went to vanderbilt and then howard law school and then worked in the mailroom of one of the oldest agencies in hollywood. he was inspired by barry diller, a couple of moguls who took the same path. agencies have been the way to rise in hollywood, and he became the first black partner at the william morris endeavor company after it merged. and he finally filled his dreams for filled his dreams of starting his own company, and specifically, bankrolling filmmakers of color. hollywood had a reputation of this very progressive place, primarily has white directors, white male directors and charles has set out, both as an agent in representing the likes of nowr perry and others, and a company trying to get black directors behind the camera. julia: he said he still believes casting in hollywood is about appeasement when people of color are hired rather than being fundamental change. how do you think he thinks he can change that specifically? lucas: i think he is hoping macro, his

emily: lucas shaw and david miller, thank you both.o have full coverage of netflix results this monday. that does it for bloomberg technology. a reminder that we are live streaming on twitter. that is all for now. this is bloomberg. ♪ >> at one point your father left your mother. you are meeting with the president -- >> women still need role models. fit category. i id box with a person but -- do box with a

emily: lucas shaw and david miller, thank you both. to have full coverage of netflix results this monday. that does it for bloomberg technology. a reminder that we are live streaming on twitter. that is all for now. this is bloomberg. ♪ announcer: the following is a paid program. the opinions and views expressed to not reflect those -- do not reflect those of bloomberg lp, its affiliates or its employees. >> the following is a paid advertisement for time life's music. it was an era of incredible stars. beautiful harmonies. >> ♪ i know i'd go from rags to riches ♪ >> ♪ sincerely, oh yes, sincerely ♪ >> magic melodies. >> ♪ catch a falling star and

andy: that was lucas shaw alex barinka. coming up, we previewed the world's biggest gadget show.mberg news, check us out on the radio. you can now listen on the bloomberg radio app. this is bloomberg. ♪ ♪ lyft is said to show off a fully automated ridesharing -- ridesharing service next week. uber are betting driverless vehicles will be a pitiful point to their business prospects. a pivotal point to their business prospects. ces, google is setting up a booth for the first time in years. executives will be roaming the showroom. we expect more of last year, which was home speakers and alexa were the big part of the show in las vegas. now, a lot more competitors. google is pushing speakers. apple is working on one. samsung and chinese companies are there. what we are seeing this year is a lot of the major tech companies here and china are working on artificial intelligence and features where you have software combining with hardware. emily: what is google's interest here? >> google is a lot in hardware this year. they have their pixel line. google wants to make sure they don't see t

we talked to lucas shaw earlier he said that was a question. 6.3 million people.ains in international subscribers. even in the u.s., an additional 1.9 8 million. the estimate was -- 1.9 8 million. million.- 1.98 scarlet: it seems the price hike did not have much of an impact. paul: there was probably a little bit. we will see it in the first quarter. history has shown the fast couple of hikes have not really impacted the numbers or gross adds. tothink they will be able continually raise prices because the message for them as we are investing in content. joe: we see that after hours move of 5%. the stock was also up in today's trading. it is up 9% from today's trading in after hours. this is just a monster move. this is a stock at 220 last week and now it is up to 40. i want of that into perspective. incredible performance. scarlet: despite the fact that it is meeting the consensus. julie: that is what paul just said. company -- the management over the last couple of quarters has tried to get it to read orient its focus -- reorient its focus away from subscribers.

we are joined by lucas shaw in l.a. hearing this news, it made me wonder what took them so long. tried to create other types of music for other years. they have funded original series. they have tried hosting some podcasts and spoken word and other audio, but they have not had a way to present it to their users. a lot of the people that made video series for spotify felt like they were lost. they don't know windows video series went up. this is the newest concerted effort to bring radio and audio, providing news and in audio form. yvonne: really quickly -- apple, itunes, they have such a big first mover advantage, don't they? toas: apple accounts for 50% 60% of all podcast listening. it is the default partner these companies look to for help. however spotify has already outmaneuvered apple for on demand music streaming. and it has a huge audience, more than 70 million of whom pay for it to listen to audio. there is reason to believe they could convince some of those people to listen to podcast and news as well as music. yvonne: lucas, thank you from liveberg news joining us from l