emily: lucas shaw, thank you.row, don't miss my interview with pandora ceo tim westergren, tuna clock a.m. new york time, 7:00 a.m. in san francisco -- 10:00 a.m. in new york, 7:00 a.m. in san francisco. -- ng up, if you like bloomberg news, bloomberg.com. more "bloomberg west," next. ♪ Âi mark: federal it or say three people connected to the -- federal officials say three people connected to the san bernardino suspects have been arrested. the third person arrested is the wife of enrique marquez, jr., a friend of farook's, who has been charged for his alleged role in aiding the violence. video surfaced of a british couple and their son savagely beaten during a family vacation. allattack stops only when three victims are seen lying on the ground, apparently unconscious. four people have been arrested. french tourists were assaulted in thailand, two of them sexually. in france, protesters fought with police over proposed labor reforms. the protests caused cancellations and delays at two airports. the u.s. strategic

lucas shaw joins us from l.a. with more. lucas, what are the latest numbers you pull out?: the listener hours being up 4%, and sales beating the forecast. active listeners for pandora have not grown over the last year or year and a half, they are really steady, but the the users are spending more time with the service. if the number of users are staying the same, one way to keep growing is having's users spend more time with it. emily: when it comes to millennials, they are spending more time on pandora than youtube, but less than facebook. how significant is that stat? guest: it is a good stat for them to put out on an earnings call, with a chart. there is this perception in some quarters that spotify and youtube have stolen thunder, and tim is working hard to try to combat that. emily: shares are down 30%. what can pandora do to change the perception on wall street? how optimistic are you about potential new revenue drivers, like concert promotions? how much can these new businesses add to the future? guest: pandora right now is hoping that they can buy six to nine month

emily: joining us for a full breakdown is lucas shaw who covers bloomberg in l.a., our editor at large, cory johnson, and eric hippeau, a partner at lerer hippeau ventures. cory, subscriber numbers from last quarter were pretty good. it is the forecast that does not look good. what are the big themes? cory: the forecast is so important because netflix grandfathered in a lot of their old customers and said they will not do that this time. we do not know what the effect will be on their customers. growth of only 500,000 new customers predicted for next quarter, combined with that disappointment in only 2 million being added internationally suggests a slower growth rate. the question is, how big can this business be? the suggestion perhaps is that netflix is getting closer to how big it is going to be. the reason that is a problem for netflix is that they are contracted to buy so much content, their costs are staying high, they need more customers. if they cannot add more customers, they will face serious problems honoring the commitments they made already. emily: i was speaking to david