to me it goes back to hulu.nk the hulu asset with all that fox tv content and disney content in one hand, that's one to me the ultimate value is on the fox asset is controlling both tv content and hulu globally. what we saw yesterday -- and i heard bob say to david, you think there's more to come when it comes to hulu and fox. look, i've been wrong. marvel i remember very well saying that's expensive deal, but they proved us wrong. any time they bought ip they proved us wrong. go back and read all the reports, pixar, marvel. we were saying that's a crazy deal, but they know what they're doing when it comes to matching and monetizing ip. you can't judge them on the first year of this. it's a five year deal. >> yeah, yeah. i think a lot of former critics know exactly what you mean. michael, thanks for the time. important day. appreciate it very much. >> thank you. >>> another very big story today, uber out with its ipo filing last night. leslie picker has been digging through that release, hundreds of pages. joins

at&t selling it's 9.5% of hulu.t's $15 billion valuation is more than double what the company was worth in 2016. that reflects it's growing user base, 25 million u.s. subscribers to both its on demand option and it's tv bundle. that price tag also speaks to its value to disney in particular. it's looking to bundle hulu with the espn plus and disney plus when it launches in november. jon? >> julia, i'm guessing that disney would like comcast, our parent, to sell its stake as well and there are reasons why comcast might not want to do that. how do the chess pieces look from those analyzing the situation? >> reporter: i think you're absolutely right. disney would like to have full ownership of this. it's a huge part of bob iger's direct to consumer strategy. the question is whether nbc universal comcast sees value in partnering with disney on this and owning a third is still a meaningful piece of this company, which is growing in value. many people comparing hulu's valuation 15 billion with netflix's valuation and sayi

i think it's worth taking a look at hulu and how hulu may really help disney in its competition withnow worth $15 billion as of this sale of at&t's stake is because hulu has 25 million subscribers, and in the u.s. last year, hulu added more subscribers than netflix did. hulu has much more room to run, much more room to grow especially in the u.s. because its penetration is much smaller. the real question is what happens if hulu should expand internationally and try to go head-to-head more with netflix internationally or together with disney plus, have those rights be packaged for more international growth i think the challenge is not specifically between disney plus and netflix, but more about all these other services including hulu, disney plus, espn, everything else in the works versus netflix and how hastings responds to that, especially now that it's more expensive netflix is almost twice as much as what disney plus is going to cost. >> she has a point, morris i have to watch "stranger things" on netflix, "killing eve," "jack ryan." the shows are driving the sub growth i'm a suck

stake in hulu back to the company. at&t's 9.5% stake in the company was valued at $1.43 billion valuing all of hulu at $15 billion. at&t says they will use the proceeds from the transaction to reduce its debt. ceo randall stephenson has talked quite a bit about his focus on paying down at&t's debt hulu ceo saying they thank at&t for their support and look forward to collaboration in the future the key thing is we knew at&t wanted to sell its stake there was a lot of speculation about whether disney which now controls 60% of hulu would buy that stake or whether nbc universal, cnbc's parent company, which controls 30% of hulu would buy that stake. instead, at&t and hulu's solution was to buy that stake directly so that sort of addresses that issue. it means -- disney will still have a controlling share of hulu, but did not sort of effectively increase its share of the company the most important thing here is that disney still controls the voting shares in hulu. but there's no sort of change in ownership structure here hu

hulu has bought out at&t's stake. a streaming giant with 25 million subscribers, 8 million of those editions came in 2018. there is speculation that disney will become the sole owner of hulu at comcast decides to sell its stake. bob iger has expressed interest in acquiring the rest of that state. we will keep an eye on that and disney plus. the competition is out there. investors will be looking for netflix executives to provide withstand the can competition. vonnie: kailey leinz with the stock of the hour. thank you. guy: coming up tomorrow, you do not want to miss an interview. we speak to the l'oreal ceo. the company has also announced it will be giving significant quality -- quantities of money for the restoration of notre dame. this is bloomberg. ♪ vonnie: it is time for our global battle the charts. it has been a big start of the year for megadeals, where we saw on the third of january bristol-myers come out. are wonderful jason is managing things. he is getting things all right. if we can, we can take guy's cha

if you compare netflix to hulu who has 25 million subscribers hulu is just here in the u.s so, netflix is really global in its scope, not just in subscriber base but content. bob iger was very clear from the beginning that priced lower than netflix. what disney plus has is the premium brand where netflix has is so much content a little bit of something for everyone although going forward investing in getting those top content creators to see if they can create new franchises for netmrflix >> since, julia, you mentioned hulu at&t decided to sell back to hul its stake in that property it would seem and this now gives disney basically two-thirds control of hulu. what is next for hulu and does disney then become by size and even more significant streaming competitor to netflix, if it ultimately takes it all over >> well, look, it seems like bob would like to buy out nbc universal which owns a third of hulu and has fun ownership and i think we'll learn a lot more about what will happen with hulu's full ownership in the next couple of months. but iger talked about who is going to be a key pi

emily: will you be attempting to buy all of hulu? bob: we've been in conversations about that possibility, but it is a little early to speculate. emily: you didn't give up some partnerships with netflix. you mentioned some of your distribution deals. you talked about sony. you didn't mention apple. you didn't mention amazon. why not? >> the app will be available through traditional distributors, apple being one of them, so i'm fairly certain that if people want to find a app -- sorry, subscribe, they will be able to do it through apple and the itunes store and other platforms could be the traditional cable distributors. we didn't have any announcements because we haven't made deals with all of them yet. emily: you are on the apple board. now that apple does have a direct competitor, will you stay on the apple board? bob: obviously i'm mindful of my fiduciary responsibility to apple shareholders as a member of the board. when this was discussed at board meetings, i'm careful to recuse myself and i'm in constant dialogue about making s

will it be worth 50, hulu, some day?to sell too early you want to let your profits run, don't you or what if it's never worth that >> i don't see being a passive investor there or trying to somehow mark up the future of something you own 30% of just to spite disney really makes any sense. and also, let's face it, whether they want to help disney or not -- look, they don't want to help disney, they're a major competitor -- but there is a number at which it's compelling for comcast to sell -- >> what do you think that number is >> i don't know. i mean, hulu loses money -- >> and they share in the losses, too. >> and there's only one buyer here it's not like you're going to be out shopping and people are going to be knocking on your door to buy the minority stake in hulu with disney looming over you. but it's a valuable asset for disney. >> so, who has the upper hand in these negotiations >> that's a good question, but i think it's probably disney i mean, what's the alternative disney could kind of just let the thing langui

comcast will sell its 30% of hulu to disney. we were anticipating it.as being tightlipped about what it would do with hulu , but it is perfect for disney. disney has just announced its disney plus platform, it has a direct of consumer strategy, and who knows, given the price, it might make comcast shareholders happy and it is doing nothing to displease disney shareholders either because it is going to give disney more confidence for everything it is rolling out for its consumers. that might be that part of the puzzle square to way. we shall see. xilinx is one of the poorer performers. it has had a major runoff, more than 65% on the 5g story. xilinx will be one of the main contributors to the 5g revolution. it may be overbought and that is what is causing some of the selloffs. 3m, a soft outlook, disappointing the street. a big track on the dow is down 11%. let's move to global macro movers for a bigger you. -- a bigger view. stronger dollar not helping turkey and argentina is having its own problems, the market taking a severe turn. the bonds are much p

hulu is competing with netflix.veiled disney plus last week, and plans to offer more mature programming through hulu. >>> americans are drinking less beer apparently. and heineken has a plan to fix that. over the past four years, american beer consumption has dropped 5%. american drinkers are focussed on health and wellness, but they want quality beer, wine and liquor that tastes good. the beer company hopes its nonalcoholic beer will appeal to people who value health and flavor. they are not the only ones jumping into the on like beers, an his anheuser-busch also sells nonalcoholic beer! so many craft beers out there, a lot of competition. >>> stay with us, "early start" continues right now. >> a pillar of paris for eight centuries, ravaged by a fast moving fire. parts of notre dame cathedral destroyed. a devastating start to holy week being felt around the world. good morning and welcome to "early start," i'm boris sanchez in for dave briggs. >> unbelievable. >> 850 plus years of history. >> and still standing unt

comcast is in talks to sell the 30% stake in hulu to disney. it would leave disney with full ownership of the streaming service as its own disney plus launch is coming later this year we bring in the managing director and head of u.s. media research for morgan stanley. good to see you. welcome. >> hey, kelly. >> we're doing well. comcast you raced your price target this morning. it's interesting i guess what they're doing here, and you tell me what you think is saying we don't care which streaming service the consumer wants to use. we're going it provide you internet for all of them and benefit from that raising all of those. is that right? >> yeah. i think if you look at comcast, earnings at the end the day, this is primarily a cable business and that cable business is increasinglied by broadband. the more we stream, the more you need internet access, the better for comcast broadband. the market is starting to pick up on that. >> you have hulu one of the biggest streaming partners it's losing money. it's losing a billion or so dollars a year f

now a new valuation for hulu and disney solidifies its control of the streaming service. there is drama in d.c. assist to house democrats press the president for his tax return issuing new threats and subpoenas to the irs the president's personal accounting firm, and deutsche bank as well, and the morning after. a massive fire ripping through the century's old notre dame cathedral in paris, france the latest in just a moment. it is tuesday, april 16th, and world wooitd exchange begins right now. >>> good morning welcome to worldwide exchange from wherever you are in the world. i'm dominic chu at global headquarters in for brian sullivan this morning who is live in houston, texas, with a closer look at america's fragile chemical infrastructure. as you can see there, much more in just a moment here. first, a developing story this morning. live images from paris where firefighters battled a massive blaze monday at the frerj capital's iconic notre dame cathedral. as you can see there, the fire sent ash pouring on to tourists as flames shot out of the roof of the world famous

live, hulu plus, hulu live and when they add espn +, and that is a wo whole different ball game andng the traditional tv networks 50, 60 years ago by going out and buying different sport events and entertainment events and competing, but there's no question that disney has made a very smart move at this turn, we'll find out they're going to put a lot of money into this and it's an incredible commitment. >> where do you think that leaves apple, bob? >> well, apple is -- apple is perfectly capable of doing a great deal of this, too. there's a lot of technology here, and even i was noticing on hulu -- on hulu plus live there's a lot of things that they have to do that they haven't done yet, and that's a $44 or $45 or $50 a month service charge if you want no advertising. so these are not inexpensive channels there are 14 or $15, and that jumps all of the way up to $45 or $50 apple has to make choices there. apple's deep pocketed. the technology of making this work and being very attractive to the user. we haven't seen enough of that yet, and that's the head start that netflix has at&t,

that leaves walt disney and comcast as hulu's owners disney owns 60% and sale values hulu at $15 billionetflix and amazon prime video streaming service and of course there is a newly announced disney plus announced last week. >> busy morning for heavy hitters including results from two dow components dom chu joins i now. >> i'm here. >> give us the numbers and then maybe we can talk tiger. >> all right. >> that presidential medal of freedom. >> the highest civilian honor. let me get to the number and we'll talk tiger's big honor there. earnings season means earnings movers we'll start with banks bank of america the latest to post results america's second biggest bank by market value posts a fractional gain pre market. there young see johnson and johnson. 1.9. profits better than expected for them as well they had better precipitation drug sales there let's see what pops up here. i'm not sure united health, earnings were better there as well so were sales. so were the forecast for full year profits in sales. also helped by better sales in its optem health services unit fast growing unit t

and the sale gives the most control of hulu because disney holds 60% stake hulu, of course, competespremarket, right now. all right, from tv to well starbucks food they have redesigned their loyalty program and launched it today you can earn rewarding points faster use to buy more things in the store, under system fewer stars reward points needed for base goods drinks get more free stuff for the first time points can be used towards selected merchandise packaged coffee didn't offer that before, 40% starbucks transactions in u.s. come from rewarding program so pretty big program, here you go rev ensaston martin released first electric car this is the rapide e that you are seeing on your screen firnl debut at shanghai auto show 6 he -- again electric sedan, logs 200 miles per charge, if you want one you got to ask quickly only 155 are being built unclear how much cars actually going to cost maria, we are going to say, a lot. headlines. >> a lot -- >> all right this is a limited supply. dagen: always say that 250,000 dollars -- 253 -- maybe for that car you are talking to these going ex

the twenty six million they're trying to recover for the creditors of the festival netflix in the hulu subpoenas are pending the other requests include tracking down money transfers which some of them reportedly want to stuff all of that a half million dollars there a similar amount to vivid seats and get this two hundred seventy five thousand dollars transferred to mcfarlane's mother that was late in two thousand and sixteen so all in all we're talking about two point one million dollars in payments to nine individuals and companies so this is you could hear from over my description here is a mess absolutely i think there are also like twenty four other instagram and. management industries also on that list as well. so the number again on its. netflix has also come under a lot of scrutiny for the documentary agreement itself cracked. yeah we talked about who being taken to task for their alleged paying for an interview with mcfarlane billboard says netflix is under fire for the way that they covered the role of an advertising company named jerry media who happens to be an executive pr

romaine: what happens to hulu now? porter: that's a good question.nse is comcast doesn't want 30% of whotheir they own, but they are vulnerable, because disney can spend as much as they want on hulu. they can not allow hulu to make profits. it will be a struggle between disney and comcast. comcast is launching its own over-the-top universal nbc streaming network, and they don't want to put content into hulu when they have their own streaming network, so sometime in the next six months he will probably see that resolved. disney wants to use hulu as an adult, sophisticated counter to netflix, and having tens of thousands of programs, mostly netflix has television episodes, not movies, that's not meaningful in the marketplace. it's what you have that counts. that's why they have gone to original programming. that's why they are spending billions of dollars to create content, but they can't compete. for every 10 movies a studio made over 50 years, two broke even and one made a profit. the hit ratio is impossible to overcome, and netflix is caught up in t

again, hulu, this is a global game this is not just a u.s.on subs globally. disney is a global brand, and the question is, does it have a global distribution franchise now? when it comes to disney plus, i think clearly, it will, but hulu internationally, big question mark espn, they were clearly saying not an international play, beyond a little bit of latin america. >> julia, one thing i noticed is that they are not going to be taking on the movie theaters, because none of this stuff goes on until it's not only in the theatrical realm, but also the inhome theater that was something i was surprised by. >> disney is perhaps the only studio not interested in collapsing the connection between the theatrical and movie release, because it's such a big event -- >> but you won't get this until they squeeze out every other dime across the platform. >> they're in a rare position of doing well with the theatrical business and if they protect it and insolate it with that month's window, they'll get people to continue to go see "captain marvel" or "the av

you said disney+ and hulu will not break even until 2024. should we assume you will be flat to down for the next two years? or will you make it up somewhere else? bob: well, don't forget, we are still growing the company and have delivered great growth over the last number of years. we did not give guidance on those businesses. our networks have been healthy, and the studio has delivered great growth. we are also observing 21st century fox and its businesses, and that will start factoring into our growth going forward. we are not giving projections about the whole company, but we are confident we will continue to deliver value to shareholders, both in the near-term and long-term. emily: what do the announcements today mean for disney content overseas? specifically china and the specifically china and the -- specifically china and the broader asian market where we have a lot of people watching right now? bob: well, i think you can figure that all of the content that we make for the service will be available internationally in different forms.

hulu we still have minority by partners. everything we do with hulu has to be done with them in mind. bundling would be something that we might take to the board, but it would require the approval. we think there will be consumers that will want all three of them bundled. we want to make it possible for a consumer to buy all three. emily: will you be attempting to buy all of hulu? bob: we will see. we have been conversations about that possibility. it is still early. emily: you did give up partnerships with netflix as a result of pursuing this streaming service. sony, you about roku, did not mention apple or amazon, why not? app will likely be available through traditional app distributors. apple being one of them. i am fairly certain that if --ple want to buy the app sorry, subscribe to the app is a better way to put it, they can do so through apple and the itunes store. cable distributors will sell apps. not have any announcements because we have not made deals with them. emily: you are on the apple board. now that apple h

hulu, we still have minority partners. everything we do with hulu has to be done with them in mind.ndling would be something that we might take to the hulu management and the board, but it would require the approval. but we think there will be consumers that want all three. eventually, we want to make it possible for consumers to buy all three. emily: will you be attempting to buy all of hulu? bob: we'll see. we've been in conversations with both partners about that possibility, but it is still a little early to speculate. emily: you didn't give up some partnerships with netflix as a result of -- you did give up some partnerships with netflix as a result of pursuing the streaming service. you mentioned some of your distribution deals. you talk about roku and sony. you didn't mention apple or amazon. why not? bob: the app will, in all likelihood, be available through traditional app distributors. apple being one of them. so i'm fairly certain that if people want to buy the app, sorry -- subscribe to the app, that's a better way to put it, that they will be able to do so through apple

emily: will you be attending to buy all of hulu? robert: we'll see.n in conversations about that possibility. it's early to speculate. emily: you gave up some partnerships. partnerships with netflix as a result of pursuing the streaming service. you mentioned some of your distribution deals. you talk about roku and sony. you didn't mention apple or amazon. why not? robert: the app will in all likelihood be available through traditional app distributors. apple being one of them. i'm fairly certain that if people want to buy the app, sorry, subscribe to the app, that they will be able to do so through apple in the itunes store. other platforms could be the traditional cable distributors, who also sell apps. ♪ abigail: you're watching "bloomberg best." i'm abigail doolittle. let's continue with one of france's largest banks announcing plans to check its workforce. -- shrink its workforce. wille french bank says it cost $600 -- cut 600 jobs around the world. the ceo is looking for ways to cut costs. 1200 positions at the banking and investors solutions di

spotify hulu thing. >> if you're paying for hulu you need to get on that. >> yes. >> amazon is confusingparate services and i don't know, i mean i have all of these alexas in my house and i just -- it's my automatic go to because the speakers are there. >> sure. and that echo can also use spotify or most of the other services instead of amazon music if you're a prime member you get prime music, a smaller play list of free songs, and then they have amazon music unlimited like spotify all the songs but that's another $10 a month, a little less if you're a prime member. >> apple you said the speakers only work with -- >> apple home pod a great speaker like this, big version, sounds awesome but only supports apple music, apple and apple you can like, you know, send your music from your home wirelessly to it but that's not easy to do it. >> google home. >> if you use google home that works with just about everything, does not work with apple music but spotify, amazon an google don't cross play with each other because no wants to play together in the same yard. >> i'm notring you talk about pa

at&t sold its share in hulu back to the streaming company leaving disney and comcast as the owners.ion comcast will sell leaving disney the sole owner. it will be more disney centric. executives say disney may bundle hulu with the kids focused streaming service, disney plus and sports service espn plus. >>> an update to safety policies aimed at keeping riders safe. they will conduct continuous criminal background checks on drivers and an identity verification process, look for signs of driver fraud and alert the company of new records that disqualify a driver. >>> 7-eleven is getting more upscale. the texas based company opened what they call a lab store in dallas. the new store features an on site taco restaurant, outdoor seating, organic teas, fresh baked cookies, cold pressed juices and smooties. >> as long as i can get my slurpee on a hot day. diane king hall, thank you so much. >> you got it. >>> an actress from the "mary tyler moore show" has died. a look back at the life of the woman who played georgette. georgia engle. show" has died. the woman who played georgette. the russ

back to hulu. yesterday which values the streaming service at $15 billion. the deal is a sign of how the streaming wars have evolved. at one time hulu was a joint venture between disney, nbc universal, time warner. none of the company had majority control. hue lee is competing with -- hulu is competing with netflix in a crowded streaming market. disney unveiled disney plus last week. >>> it's one of the stories it's hard to believe you're reporting on in 2019. measles has jumped to the second highest number of cases in 25 years. the cdc reporting 90 new cases in just one week. there have now been a total of 555 cases in 20 states, and the year isn't even halfway over. we're still in april. most of the cases have been in new york. the site of an outbreak among ultra orthodox jews that started in the fall. the new york city health department has closed one child care program for repeatedly failing to provide medical and attendance records. health officials announced anyone in affected neighborhoods t

dueling documentaries about the volcano were released in january one from netflix and the other by hulu now both of them find themselves caught up in the latest legal battle involving the scandal hit a fellow sin is conservative commentator steve malzberg hi steve. great to be here thank you great to havea thank sacré how are these tears streaming giants like then who are involved in this whole mess well it seems that there's more than two million dollars in payments at issue here and there's a federal trustee who is handling the whole bankruptcy procedure of fire festival one of the outstanding issues is how much money did netflix and hulu pay to believe macfarlane for his cooperation in these two documentaries that you mention now apparently there was a lot of behind the scenes footage from the festival and the attorney for the trustee overseeing the chapter seven bankruptcy he wants all the records related to those payments he says there's no existing records that they were aware of so you can't tell where the video came from or if it belonged to the debtors the state so they've issu

emily: will you be attempting to buy hulu? bob: we will see. we have been in conversations with both partners about that possibility, but it's still a little early. emily: you to give up some partnerships. you mentioned some of your distribution deals. you talked about roku, sony. you did not mention apple or amazon. why not? bob: well, the app, in all likelihood, will be available through traditional distributors. apple being one of them. i am fairly certain that if people want to buy the app, i'm sorry, subscribe to the app, is a better way to put it, they will be able to do so through apple and the itunes store and there will be other platforms that will also sell apps, we will do that as well. we do not have any announcements because we have not made deals with all of them yet. emily: you are on the apple board. now that they do have a direct competitor to this service, will you stay on the apple board? does that make sense? bob: i am mindful of my responsibility to apple shareholders as a member of the board. and when the subject is discus

four pennies lower than hulu. deirdre: that would be interesting. little bit higher just because they have bragging rights. but not too much higher. liz: great stuff there. i agree with you. everybody is basically subscribing to all of them. deirdre: and it's not cheaper. that was the whole idea. liz: suddenly my time warner cable bill is huge. this is bigger. thank you very much. deirdre bolton. 5:00 p.m. eastern is when the meeting begins and fox business, the second the headlines start to come through, we will get them to you. >>> the amazing race and no, we're not talking about the cbs reality show. closing bell ringing in 18 minutes. the dow down 40 points but the contest to replace embattled former chief les moonves, this is still going on, eight months after he was booted. up next, charlie gasparino with the inside track on what is taking so long and why this race with seemingly no end may keep a merger on permanent hiatus. we'll be right back. i'm working to keep the fire going for another 150 years. ♪ to inspire confidence through style. ♪

you can see the price per month for amazon prime, netflix and hulu all side by side. this moment is, you know, 20 months in the making. some people even saying you could accuse disney of teasing the press and consumers and investors, but we also have to think okay, let's give them a break, they did of course purchase the fox entertainment asset, that just closed in march. we have heard the ceo, bob iger, say disney plus' launch is the singular focal point, most important for the company this year. the other big question many investors want to hear about is how is this content going to appear and when, so when a new movie comes out, just say lucas films "star wars" franfranchise does it go into theaters first, does it happen simultaneously as it happens on netflix and also, of course, net flick is the gorilla in the room. 140 million subscribers worldwide, clearly the most adapted streaming module. a lot of people saying disney will have to catch up. then the fans of disney say listen, the brand, so strong, people are going to take it. i will be with you all hour. i'm

it still owns a share of hulu estimating another 40 to 0 60 million paid subscribers the. moves iger believe st ngthen disney's connection with consumers. >> they're going to movies and movie theaters. they're renting or downloading movies at home and consumer product, th selling ouof the c and i can go on and on. if suddenly your customer relationship is much. if the proximity between you and yourr is better you will serve them better across the pl you will monetize th deepened relationship. >> some say its subscriber projections may be too aggressive and wonder if they can replace revenu by disney's tradional cable offerings, but the price stock beice hinvestors and industry insiders looking ter times ahea >> i think that disney plus will now be the must have streaming service on disney plus.d a terrific it's the digital revolution entering a more mature phase and with enterta bob iger plans to step down as ceo in 2021 and that is continuing to dev jo find his succes and now to that energy deal that we mention chevron will acquire oil and g drilleanadarko for $33 billion

long-term play that you spin out hulu comcast in the end tries to take hulu back?erm play if they had their choice would be let's get comcast out of this partnership. let's create hulu for adults, disney plus for kids and families put them together. bundle them together and create one service but you can't do that until you get comcast out of the relationship and they're not going anywhere right now that's what i think. >>> you're in a pretty good position. >> there's no love lost between them and disney either. >> are you a believer that the hbo can compete with all of these new operations >> hbo with warner imbedded with hbo is a competitor. >> the world also doesn't understand the brand associated with the content i think you don't think i love it. i'm going to have a platform. >> exactly. >> hbo when you look at consideration of consumers, hbo is a top three or four brand it has 40 or years of brand value. nobody knows what a warner movie is. >> what's the explanation you get on this. >> we haven't. time warner is a great asset. >> before we let you go, you hav

the real competitor is hbo, hulu itself, not the hulu virtual, it is amazon, though you can't break oute and netflix. you talk about the price at 6.99, people see that as fairly compelling i think there were different expectations in terms of cost. and certainly it is going to kft a great deal they laid a lot of it out for us in terms of operating expenses and lost license content expenses, original content spend. and those operating losses are seen as peaking in the next couple of years. and then the profitability i think they may not -- they made net expectations and exceeded it in terms of addressable market and how large their subscription base will be and where the price point is, encouraging people to the extent that, yeah, we're seeing almost, well, you know, stock been up as much as 12% a little while ago and still having a very, very strong day as people are -- investors seem to focus on the out years, not the years where they will be taking the hit to free cash flow and earnings per share. >> day one, 18 pixar films, all the "star wars" films, david, 30 years of simpsons and t

remember disney also controls hulu now after closing the fox deal with 60% ownership there. the marketplace, hulu, which they see as having 50 million subscribers by 2023 the disney plus platform they're at 35.5 million. and espn plus, all out there on the marketplace. will there be discounts available to those who buy them all or even those who attend the parks on a regular basis some of these are things that perhaps will get some answers too. is it going to cost a lot? yes. is it going to be worth it are investors looking past potential earnings that disney will be taking in order to get itself ready for this future that we have been talking about for so long as cord cutting has occupied so much of the head space when it comes to media investing yeah and move ffet nathan soson, a ho hulu mostly. and the espn plus and disney plus as well, 1.7 to $1.8 billion annually that's not an insignificant amount of money. if the subgrowth is there, and it is there both in the united states and internationally, there is an expectation investors will be willing to look through it becaus

. >> disney is going for the full blown competitor to amazon and netflix. >> and hulu. >> and hulu. franchise and i think smart to do that, but that is pretty broad. >> that's interesting. you think that the disney brand can go beyond family >> yeah, i think so. i think it -- you know, family -- well first of all you can define family very broadly but apart from the kind of core children, young adults, sort of market, i mean, there are a lot of adults going to these big block buster action films that they're putting out. and they're talking about high school musical, they got those core series that aim at, you know, at the young segment, but you're going -- i think they're going to get a lot of adults in there. >> adult drama, for example? >> they're talking about it. from what i've heard, they're talking about kind of going back to the old jeffrey catsonburg singles and doubles, "pretty woman" that kind of thing. >> the question is what that looks like and whether that's a separate component of the disney franchise. >> oh, i think you almost have to ask do they have to how much pro

hulu is down to two owners. at&t sold its stake back to the streaming company, leaving disney and comcast as its owners. they sold their stake for $1.4 billion, that values hulu at $15 billion. lyft said they're beefing up security measures after the murder of a south carolina student after she mistakenly got in a car she was a lyft ride. there will be continuous criminal monitoring and enhancing the identity identification process. the ride sharing stock falling another 6% yesterday, driving it down 22% below it's ipo price. reports also say short selling in that stock has soared. uber adding easter themed treats to your ride. passengers riding in uber vehicles equipped with boxes can drive samples or purchase treats from various hershey's brands. lauren: senator bernie sanders said president trump doesn't deserve credit for the booming economy. we'll have more after this. ♪ all your life you've never seen -- $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.

reporter: you said you will likely bundle disney+ and hulu.t will drive that decision? >> i think you can figure will bundle espn plus and disney+ fairly soon. i don't have an exact date. minoritytill have partners, and everything we do with hulu has to be done with them in mind, so bundling would be something we might take to the hulu board, but it would require the approval. we think there will be consumers that will want all three. even truly we want to make it possible for a consumer to buy all three. reporter: will you be attempting to buy all of hulu? guest: we'll see. we've been in conversation with partners about that possibility, but it is too early to speculate. reporter: you did give up some partnerships with netflix as a result of pursuing this streaming service. you mentioned some of your distribution deals. you talked about roku and 70. you didn't mention apple -- and sony. you didn't mention apple or amazon. why not? guest: it will be available through traditional app distributors, apple being one of them. if people want to subs

hulu has bought out at&t stake for $1.4 billion, valuing the company at $15 billion and leaving huluy and comcast. disney gaining majority control when it required acquired fox news assets. bob iger may be interested in acquiring the rest. a takeover offer and the insulation business, king span the price,buy -- $170 million. and --e facing king span in ireland. agreed toander has buy back 1.5 billion of its perpetual contingent convertible cocos.simply known as the expectation was they would be bought back by the issuer at the first opportunity. declining to redeem euro keepingd cocos while investors guessing for weeks. guy: let's pick up on that last story we were hearing about, santander's decision to redeem dollar cocos. they caused consternation in the market when they did not call a euro denominated version. now, marcus ashworth. important to discover -- distinguish. marcus: santander is doing exactly what they say they will do. they have chose to call this dollar one is irrelevant in the sense that they look at it financially on economic logic, if they wanted to keep it they wo

disney has majority control of hulu. co comcast is also an owner of hulu. hue lie is doing well.t comes at a time where disney is betting big. it has espn plus and disney plus. netflix reports earnings after the bell today. i also want to bring you this other story. i know if you're like me, you're scrambling to get your taxes in, get to the post office. think about this fact. 60 american companies paid zero in federal taxes last year. this is according to a new report from the institute on taxation and economic policy. it looked at how fortune 500 companies have been affected by president trump's tax cut. it turns out double the number in previous years actually paid no taxes. and that amounted to about 31% fewer revenues from corporate taxes. no wonder our deficit is climbing. it has to do with the lower corporate tax rate. and also the fact that these companies get tax breaks. they got some new ones including investing on plant and equipment. some of the popular ones, netflix, amazon, deere, and a number of others. >> all right. sara icen, thank you very much. and now to some

disney owns a majority of hulu, it could buy even more of hulu, it also owns espn plus which has beentty strong and i'd like to point out, hulu plus has been growing faster than netflix in the u.s. this year. that's pretty remarkable. how big disney gets really depends not just on how much it cost but also on how much content they put on there and iger's been very clear that they're going to charge an amount that's fair for the amount of content. to go back to what jason was talking about with iger's comments about social media, in a lot of ways here iger's really positioning disney plus as the antiyoutube as well as the antifacebook and as facebook moves more into content -- >> apple, facebook, disney, youtube. >> yeah. remember, facebook is investing more in content. facebook is about this open platform and sharing of content. disney plus is all about premium safe content. you know exactly what the brands mean. you know what you're getting and there's no ads. two different worlds here and it's going to be real interesting to see, jason mentioned disney will have all this data for ad

and for comcast to allow disney to expand hulu globally is a big question mark.is a question mark, a lot of talk on this set, hey, wait until disney packages pact bundle, they got a lot of leverage on and that will creat something of the cable bundle. i've negotiated a lot of joint venture type agreements between companies and i would be also extremely surprised if disney had a unilateral right to take hulu and package it with each other's services to unilaterally benefit itself to the detriment in any way of the partnership service without comcast having a large voice in that. >> that's a very -- >> that's another really big underreported issue. >> you're right, it is an important point you're making. one i will look into disney to your point has not said they're going to take hulu internationally, but said they're looking at it or considering it they see two thirds of disney plus being international by year five it clearly is a big rant for them to run internationally, where all the subs are being added. look at netflix, how many they added internationally and

the latest player — disney — is entering the fray alongside netflix, amazon, hulu, youtube, apple anders all vying for our subscription money. so, the latest figures from the biggest, netflix, are all the more impressive. it's still signing up more users, and managing to turn a small profit. so, what do the figures show? one of the most keenly watched numbers is how many new subscribers joined netflix at the beginning of this year. in the first three months it says it added 9.6 million paying subscribers — that's up 16%. all together, they helped the company bring in just over $4.5 billion, but profit was just $3“; million because the company spends so much on making the shows to attract audiences. it's expected to spend $15 billion on original content this year. great news for actors, writers and directors, but investors want to see that paying off in terms of revenues. and expectations are high — neflix shares are worth around 75% more than they were at the start of last year, making it one of the best performing of the tech giants. but there's growing competition. the likes of appl

that's what i'm really here to talk about but i'm paying for amazon, netflix, i'm paying for hulu, i'm definitely going to be paying for disney. that's four channels, right, apple plus that's coming out >> i would argue the opposite. look at the demand for streaming, right i think we're still barely scratching the surface here. especially globally, right the secular trends are quite favorable. broadband penetration is relatively low and as the tv service, you know, universe continues to decline, there's nothing to stop people from kind of mixing and matching everyone is looking to create synthetic bundle at the much lower cost so when we think about the the opportuni opportunity over the long-term, a lot of runway left. >> when you have a buy rating on netflix with a price target, when you see the reaction netflix today, do you think that's the wrong stock to take market cap off of on the back of disney it should really be the cable providers, the networks, et cetera not netflix. >> that's a good point i think the concerns with netflix reaction are somewhat overdone, right? this is a p

, so they'll be bundling hulu together with espn plus so we'll have to see what kind of package they give people >> when youtube tv launched, so march 2018, it was $35 it is now $50. that is a humongous increase percentage wise for a service where the entire appeal basically, leslie, especially to cord cutters, is cheapness >> is price! >> it's all about price in this market and we actually still have cable in my household, we pay for that every month in addition to some of these streaming services. $50 is at least about a third of what we're already paying for cable, to have everything. >> and if you want broadband, you're talking about, what, 80 bucks for most households, anyway >> so that $80 and $50 is $130 so if you want an internet subscription plus one of these packages, brian, that's already costing you a pretty penny >> i want to be very clear that there's no company better in this world than comcast. and i say this as a comcast homeowner, and i admit it, there's still 90-some-million cable households >> it's lower every year >> but the pace of decline has slowed, has it not

i think there's going to be interesting things in terms of funneling that with hulu, as you know, theyave a majority owned stake now, but those are the assumptions in terms of pricing. on the cost side, you know, we're looking at roughly $1.4 billion in terms of investment in the dc initiative >> do you expect people will have subscriptions to multiple >> that's a really interesting question i think the tway we look at it, there's plenty of room right now for good quality content and, you know, we put a few companies in that bucket obviously, disney plus will be there given just a big fan base and very good content. netflix is obviously there hbo. and a few others i think what you'll see is not necessarily people leaving sort of netflix or leaving sort of other apps, if you will, to disney plus but more just bundling, if you will, a group of high quality content apps that are dtc driven. the names i mentioned, the hulus, disney plus, netflix, hbo, i think, you know, those are, that's what makes this space sort of interesting to us right now. we're starting to now see some really solid