on netflix cell phone -- streaming on netflix.ow valuable would an oscar far the movie at this point? >> it would be very important for them. they're going to have to get support from theater chains. that would be a tough road for them, since a lot of the chains see netflix as an interloper of sorts. and as a model that is being created that can take away from their business. i think what is ultimately going to happen is that out of all this, we are going to see a lot of changes in the way that things are done. however, i think for netflix, this is an important step. but again, they are still going to have to get the theaters on board, because if you cannot show it at a theater, you cannot get an oscar nomination. remember, this will not work for every movie, and you cannot make enough money back on a big budget movie to just go in the on-demand space. but suddenly netflix is taking a claim and trying to get support showing the movie and trying to get oscar consideration. emily: it is interesting because the ceo of regal actually

i understand why netflix is doing this. netflix is going to shake things up.hey still need this movie theaters to help them on their way. emily: now you have other studios wanting to make a netflix series, because house of cards was such a big success. we will be watching. thank you both. now, last night, the uber ceo went on "the late show with stephen colbert." he defended uber's plan to use driverless cars and also claims that apple is working on its own driverless vehicle. colbert: i know you talk about how good this is for drivers, but you said you want self driving uber cars. that is not just for the driver. we are employing robots at that point. how is that helping delivery drivers? >> google is doing the driverless thing, tesla is doing driverless thing, apple is doing the driverless thing. this is going to be the world. the question for a tech company is, do you want to be a part of the future, or do you want to resist the future? we feel that in many ways we want to not be like the taxi industry before us. that is how we think about it. emily: what y

they have netflix. they regard netflix in the way i regarded kleenex and xerox.his happened very quickly. why? >> as the internet grows people are adapting these new scenarios. they probably use uber, they don't a car, they use amazon. you have to think of this big internet sector story transforming our society not as fast as we naught the '90s but, you know, when you look at the big picture now it's impressive. >> we want to know how much you care about winning, including emmys this weekend. is that a way -- should i by thinking about netflix as emmys per share? >> no, emmies is a long-term game. we'll do better every year, have more shows but the emmys reflect elite tastes and that's an exciting sector but we want to be super popular and very broad so it's only part of the picture. >> super popular and very broad means getting the best actor from brazil, getting the best director from mexico. how do you know these people? how do you know that will play worldwide? >> well, netflix has been operating internationally for many years now and if you're a great brazil

let's talk about netflix. big changes are coming.mers will no longer be able to stream major blockbusters like "the hunger games: catching fire." epix, who owns the movies, they will switch to hulu after deciding not to renew their contract. it will focus on original material with names like brad pitt. joining me, anousha sakoui and brad adgate. can netflix keep up the original content to sustain its business model going forward? people like kevin spacey and brad pitt are expensive. there is no guarantee of another hit. brad: you are 100% right. it is really risky. netflix feels that exclusive and original content are things that are going to grow their subscriber base. this is the path they have decided to do. they have a deal with amazon prime. the deals they are making going forward, like with disney, are going to be exclusive. that is the route they want to do. emily: is there a sea change in hollywood right now? how do content creators and actors feel about netflix? is all the momentum moving in netflix's direction? anousha: one

netflix isthink for an important step. there stood we got to give a theaters on board, because if you cannot show it at a theater you cannot get an oscar nomination. this will not work for every movie, and it cannot make enough money back auditing budget movie to just go in the on-demand space. but suddenly netflix is taking a claim and trying to get support fight showing the movie and trying to get oscar consideration. it is interesting because the ceo of regal actually said why should i show in its movie in my theater when people can just watch it at home? personally, i would watch it at home for free. i do not think i would want to pay for any theater. it is a movie. see the new star ins, they want to go see it the theater. a small movie, the small screen works. but regal, then show the actual sounds and this is undercutting their own business. landmark will show the film, but all will wash out eventually because these are new technologies, netflix is a relatively new player in the side of the business. have a letter re

netflix over 40 million subs. i think when it comes between hulu and netflix i would -- >> lying a cable company. sorry to cut you off, man. but that's my big problem. either it's a media company or it's a cable company but it's not both. >> but netflix i think still owns the dance. they're where they're -- >> you could still believe that. but in this market environment you may not want to pay that multiple -- >> you definitely don't. >> even for a player -- >> we just talked about how bull markets and everybody's expecting these big blowoffs. take a look at netflix i since april. it's a double since april. that is a hockey stick type of chart. that's exactly when you start take profits -- >> i don't disagree that netflix is going to see more pain but i think ultimately they'll still be the winner. if the market goes down it takes ev with it. >> here's the thing, guys. huh talk about the company and what you do mel just said it. in-season tv. that's something netflix does not have. okay? they data dump their show

alix: a big weekend ahead for netflix.ts first original movie will be screened at the toronto international film festival. the violent drama about an african warlord gives the company a chance at an academy award by netflix wants to get more people custom to watching theater quality films at home. netflix customers will be able to watch it beginning next month. scarlet: serena williams lost her match today in the u.s. open semifinal. the first calendar grand slam is now over. she faced off against roberta vinci this afternoon. the matchup was rescheduled for today and the chief economist at the redneck was just waiting that -- waiting that we see deflation and the prices of u.s. open finals. still ahead on the bloomberg market day, on the verge of a new gold rush. investors scooping up. we take a look at that next. ♪ alix: welcome back. we want to get right to david, who is looking at all things markets. a relatively quiet day. david: relatively quiet. about here. talk this week is on track to be the best week we have had

matt: netflix has issues. the problem is, if apple is making deals with tv and movie companies to make content, it is not necessarily going to be better than house of cards. that it will be competition. they have a catastrophe over at amazon. a lot of people are getting into this game and walking in front of my camera. emily chang: i do not want to listen to you either. let's get back to kathy. kathy, do you think that china's hard landing has already happened? why are you optimistic? if you look at commodity price -- if you look at commodity prices, they have been cut in half because of china. this is not a surprise. you look at electricity and the hard landing took place and they have more room than any other country. the rates have been cut five times and they will continue to cut. we think that they will get this right. >> look -- emily chang: go ahead. are in a situation where their currency could be overvalued at 30%. the interest rates are too high. out of all, they have stand corruption. doing those th

my netflix, i am to netflix what tim is to baba. >> but baba is up and netflix is at the highs. >> whatever that means. >> all right. very good. you're watching cnbc first in business worldwide. here is what else is coming up on fast. >>> did you see that? an explosive article has the tech world in a tissy over whether apple is developing a car. we'll talk to a reporter who broke the story and get the scoop. >>> and later, an industrial strength problem. it is the one down stock traders see going much lower. the name, when we return. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. >>> could a self-driving car be apples a next big thing. speculation is that a car could be in the works. and today the guardian reports that they are in talked with the california dmv about testing a self-driving car on the road. mark harris

now, let's talk about netflix.ig changes are coming, customers will no longer be able to stream major blockbusters like the hunger games and world war z. they will switch their partnerships to hulu after netflix decided not to renew the contract. the company as focusing on more original content with big names like brad pitt and judd apatow. joining me now, our bloomberg news reporter. up all thiskeep original content? people like kevin spacey and brad pitt are expensive, there is no guarantee of another hit. >> it is really risky. but i think that netflix feels that exclusive content and original content are things that are going to grow their subscriber base and this is the path they've decided to do. they have a deal with amazon prime, they have one with vicious tv, they didn't like that, so the deal there making going forward are exclusive. that's throughout the want to do. >> is their seachange happening in hollywood right now? how to content creators feel about netflix? is all the momentum moving in that direc

netflix, gopro, high momentum, high multiple stocks.e that they continue to get sold. and that's a core view of mine. but if you look at the technicals, closing above 1960 i think was constructive for this market. >> let's talk about netflix. one name that didn't fare so well. netflix shares down by almost 4% amid new developments in the streaming wars p. it's now closed below its flash crash lows of two weeks ago. verizon and the national football league both out with new announcements. verizon launching a new service called go 90 which features content from espn, comedy central and discovery among others. in the world of sports nfl announcing a new $99 service called game pass which allows cord cutters to watch preseason games, listen to regular season games and stream games after they've aired. so which company stands to win and lose in the latest battle in the streaming wars? rich greenfield is technology and media analyst at btig. great to have you with us. >> thanks for having me, melissa. >> i want to get at this netflix underper

no one cares about netflix.y want to watch "orange is the new black," but the minute that somebody else has better content -- who cares. >> and the distribution continues to heat up. "wall street journal" dow jones industrial average made a point even the 20% sell-off we've seen in netflix shares, they're still trading at a high valuation, nearly 90 times next year's earnings. >> when we come back, stocks still in rally mode ahead of our interview with warren buffett. eel talk markets, the economy, china and more after a break. >>> the annual lunch with warren buffett is today. the winning bidder of theo for the lunch paid over $2.3 million to have lunch with the oracle of omaha. let's send it over to becky quick, who is with the man himself. >> thank you very much. we are live, with warren buffett. warren, $2.3 million is a lot of money to pay for a lunch. i know it goes to glide, but you're no cheap date. >> just think of the tip. >> i'm really glad that we have you here today, because we've been watching the

the netflix's repertoire watching netflix as much or more as they are watching tv.sts $80 a month, and these guys are charging nine dollars a month. i think they can move that up a few dollars. each dollar that they added 700 million to the bottom line. i think they will emerge the winner even from here. scarlet: thank you so much. coming up on the bloomberg market day, oils slide is put in perspective. we take a deeper look at goldman sachs. ♪ scarlet: welcome back to the bloomberg market day. let's get you a check on how commodity prices have settled in trading. i will bring in my colleague alix steel. you're talking about goldman sachs is forecast of crude oil. ordered five dollars is where it is right now. but possibly $20 a barrel. what is your read on this divergence between perspectives on oil? are all looking at the same metrics, but people are coming up with entirely different forecast. it all boils down to one data point. how you will non-opec supplies be brought in. when that production rules over his when the market balances is when these people have eme

>> netflix has issues. is problem is, if apple making deal with tv and movie companies to make content, it is not necessarily going to be .etter then house of cards they have a catastrophe over at amazon. a lot of people are getting into this game and walking in front of my camera. emily chang: i do not want to listen to you either. do you think the hard landing has already happened? why are you optimistic? >> it is no secret that the cycle is over and they have cut in half because of china. this is not a surprise. you look at electricity and the hard landing took place and they have more room than any other country. the rates have been cut five times and they will continue to cut. >> look -- emily chang: go ahead. >> the currency may be overvalued 30%. the interest rates are too high. real.ave corruption for alonethose three things would be difficult and doing them at once is incredibly difficult. the turmoil that will put the market through is going to be really hard to deal with and it is not something y

like hbo now and netflix.he two of us just have a great rivalry. >> echoing sort of what hastings has said before, and that is rising tide will lift all of these boats, whether it's amazon or google or apple or anyone else. >> nbc universal as well. our parent company. let me give you an example. mr. robot is a netflix quality show. when cramer did the interview, and he said why does netflix have this advantage? why can't other people compete? the question is not why can't they compete? it's why are they being so self-defeating? you basically can't watch mr. robot right now. the experience to watch it in the usa app. there are six commercials loading 30 seconds. you can't fast forward when you watch it on sbot. as soon as each additional companies decide to get it together and do the stuff that's more functional and user-loving, i think there will be more competition from the entrenched buyers. >> the beauty of netflix and darn you, reid hastings, for so long i wasn't suicide bomb subscribing to netflix, but m

netflix is the hottest stock in the s&p this year. our next guest, though, is not convinced the rally can continue. it's our call of the day. the sell rating. he is live today from new york city. ken, it's good to talk to you. thank you. >> the first place to sell on netflix, you know where i'm going with this. >> the stock is up 50%. why is netflix unable to convince you that the story is not what you think? >> i think when you look at -- that's been going the other direction. i think if you step back, swrenly for content owners, i think they're going to find it ease wrer to get closer to their audience, measure that engagement, monotize that engagement, and i think that leads netflix into a direction of having to produce the content itself and having to essentially spend more. i think at the end even assuming success theshgs become a channel and not your home page to define all content. i'm just trying to keep a degree of balance here. >> you don't think they'll add enough subs not only here in the u.s., but globally to deal with th

he just killed you. >> netflix you're very defensive. >> bought that at $106. >> go. >> netflix. >> bought sold it at $117 plus last week. back in it now at around $102.10 yesterday. i like josh's strategy using a technical stop down below the market. which i will do. >> you can follow all of the action at cnbc.com/pro. coming up -- ahead of twitter's board meeting today. interim chief jack dorsey cleaned up his act. he went to his favorite barber, gino, we sent jon to get the real scoop from gino along with a little haircut as well. >> yup. >> what did the barber and jack speak about? we find out next. >>> plus bob peck is coming up. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. >>> ahead of twitter's board meeting today jack dorsey, of course, the interim ceo tweeted out this photo. instead of reading between the stubble we sent

and netflix has just gotten absolutely crushed. i mean, it's not fair to say the stock has been completely destroyed since year to date it's still up more than double. but it is in, officially in bear market territory, since it's come down from its august 6 highs more than 20%. a lot of the problem is competition here. i mean, so much talk has been about apple and apple making its own content and that could mean it takes a bite out of netflix' lunch. but you also see ali baba getting involved in the same kind of service. you see hulu offering different services like commercial free television services for $12 a month. so competition coming from every area. and then analysts started to pile on. we had some analysts say it's time to short the stock. it has had a fantastic run so far. as a result, it just was down, down, down every day for six or seven days in a row. emily: also, matt, we're seeing netflix doubling down on its original content strategy spending more not less. they ended their contract with epics. you won't see movies

an interesting story on netflix. dollar tree was the biggest loser because it had revenue forecast of 15.3 billion dollars for the full year. analysts were looking for $15.6 dollar on average, then tree said we cannot take you what kind of profit were going to make because were still integrating the purchase of family dollar, bought back in july. off with the rest of the market down 8.7%. freeport matt moran was iti because itc doesn't think it's going to slow down copper production. if nobody slows down, you get too much supply new don't have enough demand to me that supply. so the price of the producer will go down as well. i talked about apple eating netflix's lunch. it's not a done deal. we note netflix has some great shows. a boost in the price target did not seem to help netflix. alix: thank you so much for the roundup on the markets. ofoined by the deputy head u.s. economics. we have yet to see the global stock selloff trickle into the economy. do you agree? >> i do agree. it's hard to know the impact of the c

netflix trying to do the same in asia, why does netflix pick japan to be the first?it is the second largest broadband market in asia, after china. many differentso convocations, they have not even committed to offering the service yet in china. some japan bears similarity to markets where it has already had success in western europe. markets where free tv is popular. streaming is just eating up -- picking up. angie: what are the most evident challenges they will face in asia? are a couple, one is that over time -- isthere are a couple, one that western media has been popular in japan. last decade, japanese consumers watch more local content, and less hollywood fare. the other is the popularity of free tv, netflix has to get people to pay for a service they previously were not doing. netflixso the fact that thinks that the japanese consumer takes a little time to warm to the brand. they think it will take time to convince people to trust it. angie: everyone is watching how successful it will be. they are warning that maybe it will take a little time, still, how import

pimm: how netflix will reshape the movie business.nvestors are one weekend and one jewish holiday away from the next federal reserve rate meeting. with the weakening chinese in the and no inflation united states, some are at a loss by the federal reserve consider raising rates now. >> if you really don't know that you have room to raise it for a while, why are you starting? it is asymmetric. if we see in-flight they can raise rates. if you go in the wrong direction inflation, we see they can raise rates. if you go on the wrong direction it is harder to do something about it. i am lost on the strategy. betty: some of the best minds have said that the fed to should hold off. mohamed el-erian said that although the fed has solid domestic reasons to raise rates next week, it cannot ignore the worsening international context. 51-40 nine, it is that close. the hominid is joining us this morning. it is always good to see you. does that mean that everything next four trading days? mohammed: it is about their assessment of the risks and how ne

well, netflix has decided to come up with there own netflix and show button called switch.ill not be selling the actual device, however you can look up the plans to see how it is made. >> personified the american dream, that's what love one said about a legendary yankee at his funeral. they were not inspirational. >> celebration of his life. >> we report the news, but we do it differently. ♪ >> so everyone rejoice. i am back from vacation and it is national coffee day. people like myself, get coffee for the low price of 399. starbucks being starbucks. >> and that. >> check out this video. this was a great football come back. toto jersey guys play for the stonehill college football team in massachusetts, down by 17 points, scored three touchdowns .-dot by this hail mary pass and great catch. >> i could not believe it. i was lost for words. i don't even no how to answer these questions right now. >> david letterman who we have not seen since he retired from the late show in may made an appearance recently on the streets of manhattan. bill: he looks like he has let himself go

netflix is expanding in asia.fer streaming video in hong kong, taiwan, singapore, and south korea early next year. netflix began service in japan and plans to complete a global expansion by 2016. this is not going to sit well with "star wars" fans in the u.s., but europe will get to see "the force awakens" before we do. the movie opens onto cymer 17 in the u k and a day earlier in france. according to imdb, the first nation to see a new star wars movie and more than a decade will be the uae. u.s. theaters will not show the film until the 18th. bookies predict it will be this year's highest grossing film. clearly, i just have to go to the uae. an update from facebook ceo mark zuckerberg on how the deal with oculus almost did not go down is posted in "vanity fair." he said he was less than impressed after an initial the company'sh ceo and also lost interest after hearing that the primary market would be the gaming community. the pervert eventually came around because he did not want the next bign computing platform.

if netflix is up, chances are you have an upmarket.x is down, chances are the you'll get a down market. >> i think it's a good point. but you need to have a little more context than one week's performance. so look at the lirs of weekly winners, you have green mountain coffee down there. which is down 70% the last year. netflix down 14% this week but up 100% since january 1st. if we're just judging stocks based on how they did over the last five trading days we get a very skewed picture of what's going on with these companies. >> leadership that we're talking about with netflix. if we go back six, seven months ago you would have said that with apple. the leadership will change flimt. >> i thought one of the most telling signs this week was a day when the market was up nicely and apple was not. >> and it's hard to remember a time where you've had a strong upmarket. and a name like apple would still be down. >> i have issues with chine and you also have issues with product cycle and margins. and the stock is over owned today. it's one of

the same is true though surely for different reasons for netflix. netflix faces increased competition from apple, ali baba as well. and it's trying to globalize right now. you've seen netflix come down 20% since august 10, and if you look at my terminal, come on in to the terminal and i'll show you this chart here, year to date, netflix, you're still happy if you got in on december 31 because it is still up more than a hundred percent year to date. in the last week it's come down crossing through its 50-day and 100-day moving averages the yellow line down here is a 200-day moving average. still a long way off of that but it's really been a collapse in the span of six trading days for netflix. so very interesting moves there in the markets and it just shows you that a tiny devaluation of a little currency in china can do a lot of damage to global markets. alix: good stuff. thank you so much, matt miller. >> i just beckon you into my bloomberg terminal now to show how global this has been. the german dax had the worst day it's had in four years and we

google, if you had to pick one of four most likely to not success, i would have to say netflix netflixme three clients are going to -- fire me -- >> that is a big statement. >> netflix would get bought if it had serious -- >> say, if they stay on edge hungry creative, they bring in that new viewer that you know young 18 to 20, 30, 40-year-old, millenials. >> appetite more expensive than used to be eating cheetos now caviar because apple getting in the business, they didn't have money to eat that way. >> you can they can get i think what is rim trade at now a long way, from bought when you talk about something that gets -- >> thinking aloud probably bad idea. >> i like it want to know what you are thinking oil prices giving back some of yesterday's gains on heels of a weak manufacturing data overnight, out of china, how low will prices go next more on that coming up stay with u us. . >> welcome back crude oil prices pulled back this morning on heels of weak chinese manufacturing date, out this morning, 6 1/2-year low for that purchasing managers index in china check ins guest says worst

cbs is the true troubled one. >> all of this that favors netflix, that is in the price. all of disney that is worried about has been taken out of the price. i agree with brian. some of the time warner, that is hbo, and offers the most upside and that is the one i would go for. >> and we have a special report on twitch, coming up in the hour. and sales of iphone running at a record pace but stock won't rally. what has investors so concerned. you're watching cnbc, first in business worldwide. in the meantime, here is what is coming up on "fast." >> something strange is happening with the moon and much like the tide some stocks could be pulled higher. plus -- you might want to. because the fed just did something that could make cigarette stocks smoking hot and we'll explain what that is later on. (vo) what does the world run on? it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes

we'll open up with netflix. apple, i keep saying it the big one all eyes on apple, down may i say only $3 a share. 109. and high was 130, three, four weeks ago. and now 109. >> after great earnings. stuart: what is the next one, facebook. facebook, if that's down to $86 per share. remember, before this market turmoil, they were pushing right at $100 a share and now it's 86 this morning. >> do you like that. stuart: amazon, a stock which came all the way back. last monday bottomed at 451, zoomed to what, about 520, now we're going to open up this morning at $500 per share. am i whetting anybody's appetite. ashley: when you say facebook as 86. it seems good to see. >> they had a billion people on their site and great opportunity to own the name on sale. for an individual investor, it's tough to move in and out of the market when you're getting these types of major announcements and markets. stuart: but if you're convinced at that facebook is the place for you for the next ten years, buy it, sit on it and don't tou

hbo won 15 creative awards and netflix won 2.or wide the gap is between the two. i think many investors think of netflix as the next hbo and the truth is hbo is the next hbo. they have much, much better content, it's going to last for many, many years. >> we saw that in the awards ceremony. michael, i find your position on netflix so interesting, the bear on one of the most loved stocks and best performer in the s&p 500 for 2015. is the problem as you see it putting aside the awards and how many emmy's they took home this idea that they're spending so much to acquire subscribers and on these original series that they are just not reaching the kind of critical mass that would lead to profitability? is that your bear case? >> you know, they certainly have critical mass, they just don't have it all in one place and i think that a lot of the bulls think international is a place. in fact, i think they need more than a million subscribers in any country to justify the content deals they're signing. they are there in canada and in the u

they've got panasonic and sony pre-installing the netflix button on the tv remote.stall it on the new smartphone that you buy. it is all going to be helped by friends in japan. japanese like their own content. be going tong to 40% local content in japan to try and jump up the user base desk try to drum up the user base. -- try to drum up the user base. they are going local, but there are so many challenges. a whole array of headlines against netflix. it sent their stocks down about 6% yesterday. japanto be launching in this month. they are offering their content, prime video. you're able to download and use it on your phone while you on the train. .here is a big move apple is in talks with hollywood producers to produce their own exclusive content. ofs gets to the very nut --flix is come to titian. netflix's competition. jonathan: the executive proposing to extend their ceos contract. what would that contract extension mean for bw -- for vw exactly? uncertainty. if you recall, there was a major betweennt dispute longtime associates. it fell apart and there was a dis

netflix -- it's also going to change the ability for netflix to buy content.s what kind of deals they made. right now they think netflix is a phenomenal story, and hastings has been a tremendous job. >> jimmy. >> i would find this a very hard stock to buy at this level, and i'll sound like the crazy old uncle in the attic who is a value investor, but look -- >> that would be -- >> call me uncle jim. 300 plus times next year's earnings, you know, i just can't buy it. having said that, this stock has been a stellar performer. if you think the market is going to recover, and you are already in the stock, you probably can ride it. for me as a valueinvestor, it's a hard stock to buy. i do want to point out that if it is staying here in light of what steve has said of some concerns that you have on the stock, i think that may indicate it does have staying power in terms of its price. >> doc. >> this is one of those that i, you know, reluctantly got out of way too soon, judge. >> so you never end up getting back in? >> no, i have not. one way that you could get in, w

well, netflix has decided to come up with there own netflix and show button called switch. netflix will not be selling the actual device, however you can look up the plans to see how it is made. >> personified the american dream, that's what love one said about a legendary yankee at his funeral. they were not inspirational. we do it differently. everyone is saying, "hey! you gotta get fios!" but why? well, fios is a 100 percent fiber optic network, so you can get 100% out of all your devices. so whatever speed you need, fios has it with the fastest internet and wi-fi available, from 50 to 500 mbps. but the main reason to get fios? we're rated number 1 in customer satisfaction. ultimately, that's why. get 50 meg fios internet, tv & phone starting at $79.99 a month. plus get $350 back with a two year agreement. my milkface is an elevated state. cinnamon is my soul mate. no debate 'cause it tastes so great. that's why i got milk face. yes, you want it. the milk tastes oh so sweet. just like heaven between your cheeks. try this technique, put your mouth on fleek. >> so everyone

it's a science in that sense for netflix.lly that will be something that pays off in their subscriber acquisition costs. >> walter, thank you for joining us. i -- martin, excuse me. >> thank you. >>> straight ahead, our next guest says that china's pessimism is not based on fact. he's the president of the china beige book international. he will join us live after this break. >>> good morning. pope francis spending his second full day in cuba hosting a huge outdoor mass in havana. hundreds of thousands are expected to attend. he's also meeting with bishops in santiago. tomorrow the pope comes to washington. >>> volkswagen halting the sale of some 2015 diesel cars in the u.s. last week federal regulators revealed they found software in the cars designed to give false emissions data. the automaker could face fines of up to $18 billion. >>> a second chance for greek's prime minister. his left wing party won about 35% of the vote. last month tsippras resigned. >>> and last night, viola davis became the first african-american woman

netflix is not renewing its contract with epix. films that have been available on amazon for the past three years. analysts say it's no loss for netflix. >> to write a big check, a couple million dollars for movies that are a year old and not exclusive to netflix doesn't do much for them and i think they are better off allocating their capital elsewhere. if you look at what they've been doing the last three or four years, that has been the strategy and you can see the results yourself. >> it looks to compete with hbo and lure more subscribers with can't miss content. meanwhile, hulu, which until now has been focused on tchl v shows, is stepping up gears. it's going to round out its catalog starting october 1st. owned by disney fox and nbc universal, hulu is broadening its appeal beyond the 10 million it has now. >> these kind of rights don't come up very often and i think it's not a surprise, given the investment that hulu has made recently. look at the seinfeld deal they did. they are spending more money than they have historicall

more than netflix. netflix is not heavily weighted. did not make the list. it is fascinating, this switch. things could change by the end of the year. especially on a very today when you will hear from apple. the stock does not tend to do spectacularly well. erik: i'm going to move on to number five. this is our top corporate story of the morning. a corruption probe replacing united ceo. at chief operating officer csx. this raises all kinds of the questions about leadership strategies. and whether backroom deals like this or the ones alleged to have taken place in the politically sensitive as miss of air transportation. george hamilton is president of hamilton consulting. george, i think the simplest place to start is, what went through your mind when you saw jeff was being forced out of united? george: why. when i learned the reasons behind it, i said, that is a place we do not want to be in. erik: nobody wants to know ceo and no employee of any company. i am assuming you heard a little bit, at least, of what was alleged to have taken place between united,

those netflix shares down by 8%.n there is of course -- we're just going to throw am'll in there posting its biggest point loss on the dmds 100. it was the biggest drag. it is of course the biggest component here. the overall composite, nasdaq composite is into that correction territory. negative for the year. we're down 10% from the recent highs. chip stocks in particular. we talk about them often here on this show for "fast money." they're back to bear market territory. if you use the smh etf, the semiconductor holders etf. we're down 20% since october. again, 2013. and from its more recent highs you can see the year-to-date chart there. again, semiconductors certainly playing a part in that big carnage of a tech trade as well today, melissa. back over to you guys. >> dom chu, thanks very much. grie adami, what do you make of the carnage in the semiconductors specifically? >> they've been under -- well, if you want to throw micron in there, micron is trading as if were drm prices were going to zero which may in fac

but i also believe that this is what's going to save netflix too.etflix deal with disney kicks on in 2016. so they're going to get "star wars." they're going to get marvel. superheroes. there's a lot of content that's going to save both stocks. >> if the market gets stronger i think disney's a place you do look to buy. lock at the way it's trading. 100 is your stop. you can get it up to 115. that's the gap. you have something like a 1 to 15 risk-reward ratio, which is fantastic. disney's where you look when the market starts to rip. >> next up facebook-owned what's aup reaching a milestone, 900 million monthly active users, adding 100 million users in the mast six months. julia boorstin in l.a. >> that's right. what's app's user growth has been exclusive -- explosive. it's really been amazing, melissa. it's grown 50% over the past 12 months. it is the most popular messaging app worldwide. it allows users to send text and voice messages. and in just the past few months it's rolled out voice calling as well. the app is free to donald. it's also free t

the netflix ceo is famous for saying we want to become hbo before they become us, and the iscess of netflixg reason hbo and showtime have started offering that works over the internet. difference there a in the way these operate as studios, in the way they green light shows and work with talent, or can we just look at them as columbia? lucas: there is a very big difference in the ways they operate. hbo, i mean, there are a few different ways. hbo owns and produces everything on its own. that is a subject we will in futureelve into stories and we have written about it to some extent. i think the big difference for a show runner and creator, netflix tends to give a one season or two season commitment right off that that. hbo sticks with a traditional pilot process, they have one make an episode and i decided they want to pick it up. amazon is in between where they have an unusual pilot process of letting other people watch it and make their decisions basically somewhat on user feedback. they all approach slightly differently. nightn: best actress last , in a drama, i was really surprised that

netflix does for the oscar nod.st original film premieres on sunday at the toronto international film festival. we will explain the business behind the scenes. ♪ pimm: coming up next week on bloomberg "surveillance," eight conversation with the hedge fund manager of bridgewater, ray on wednesday, september 16 at 6:00 p.m. netflix, their first original movie is called "the beast of no nation." ill be screened on sunday at the toronto international film festival and will give them a chance to win the first academy award. what is the company's larger objective? helping to answer that question is my coanchor for the next hour, betty liu. this is not about ticket sales, it is about raising the number of subscribers. they have 65 million subscribers. this is how they make money. this is their first movie, it will not he about whether or not it will be number one in the box office, though they would like that, but it is them saying they want people to come on to the and watch morem theatrical productions. stay on the platf

let's take look at shares of netflix. surging of the they had been hammered and they're expanding services to asia and including south korea. school starts in washington, the teachers aren't there, they're on strike. the classes are canceled. seattle, the home of the $15 minimum wage and doing well and teachers have to have a piece of action and would not have school on the first day liz: now 50,000 kids can't show up for the first day of school. here is what's going on. the teachers want 10 1/2 pay raises, why didn't they settle before the first day of school. >> they weren 0 vacation liz: and now the superintendent says i'm sick and tired of this, i may sue the teacher's union for doing this on the first day of school and a big tight fight in seattle. we want to pay our teachers, but they were already in talks and called a strike. people are upset about this in seattle and a neighboring town as well. for the kids to have the first day of school and not have the teachers there when they seem to have a good deal on the ta

a netflix executive once told me that when they started doing the netflix "house of cards," when spacy's character would look right into the camera, it turned off a lot of viewers. they didn't like it. also the dog. there was a horrible scene the dog gets killed early on. that turned off a lot of people pap it's amazing how you can chart. >> those are two things we're not used to where the character breaks the third plane there. >>> coming up, a new twist in the volkswagen scandal. their ceo surprised but not totally unexpected announcement as car owners around the world try to figure out what to do next. >> this morning, we're going to the dogs. if you've got a pup in your family or thinking about it, we've got some tips. but first, today's forecast. you're watching "world news now." >>> "world news now" weather, brought to you by the gerber life insurance. i take prilosec otc each morning for my frequent heartburn because you can't beat zero heartburn! ahhh the sweet taste of victory! prilosec otc. one pill each morning. 24 hours. zero heartburn. we've been changing things up witoh yea

despite that, netflix still exactly 100% gainer for the year.l, i, would you have a problem with the notion that it's become sort of the stock market's atm? it's where you go to sell when you need to sell something? >> that's an interesting point of view. i hadn't really thought about it from that perspective. if you go back in time, you know we funded netflix back in 1999, it was a very small company with just a phenomenal management team that's gone on to do great, great things. you know in 20 years of foundation capital's history, they're the only company we've ever funded that actually hit the level where they were 100 times more valuable than they were the day they went public. and so it's a very, very strong company. the stock is a growth stock. it's a high visibility stock, i suppose these kind of stocks are going to go through some sort of fluctuation from time to time. if you believe in the scale of what's going on there, if you believe in what's going to happen globally with the business, it deserves to be one of the strongest stocks o

netflix going live in japan.tbank, using companies to market themselves, to be able to convert 30% of all japanese households to subscribe to pay tv. u.s. is 85%. these are low hanging fruits. they are not used to paying for content. they market and be able to get netflix on their phone? panasonic and sony are going to put it on their tv remote control. manus: huge opportunity for netflix. up next on "the pulse," an exclusive. oil minister. what did he tell bloomberg? ♪ back to "thee pulse," live in london. let's get you up to speed. china's benchmark stock index has fallen on the last trading day of this week as investors gauge the level of support for a major military parade on thursday. shanghai composite is extending its biggest two month loss since 2008. %ustralia's economy grew by 0.2 last quarter. down from thew first few months when gdp expanded by .9%. a slow down in exports to china weighed on estrella's economy. with government and household spending helping to keep the number above zero. oil has conti

i think netflix goes higher. >> how are you feeling about netflix? well and the growth internationally. they continue to expand. in the u.s. there might be some concerns in terms of growth. subscribers have been strong. can they continue to be strong in that regard? but i think this international expansion, we've talked about it and talked about it. as this continues and as this rollout, this is a company that continues to grow to the up side. 90 to 9 5 to guy's point, any opportunity in those levels that's a buy for netflix. >> i'd go the other way. i agree, 95, 96 is the level to trade off. if we're talking about apple and the disruptor elements of today's meeting. if anything, apple tv for netflix poses a big problem. granted, that could be the conduit in which you get to your netflix. >> that's my conduit. >> to the extent a lot of people -- they're talking about apps and people going around it almost and going straight through there, it's interesting. tons of competition. a valuation that doesn't make sense in a market that's very scared of valu