you know it as pandora.oday, more than 80 million people tune in every month to listen to millions of songs on over 7 billion pandora stations. joining me today on "studio 1.0," pandora founder tim westergren. thanks for joining us. so great to have you. what is on your playlist these days? tim: the center of my musical bull's-eye is ben folds. he is a piano player and a great songwriter. on his station, i find other artists that i like. a big font of discovery. i have jazz, punk, folk, country. emily: i was pleased to find the "frozen" station, the "let it go" station, the toddler radio station. tim: very popular. emily: when did you discover your own musical talent? tim: i began playing piano when i was seven, living in france, and learned just enough about chord structures and improvisation to allow me to get around the keyboard. after that, i fell in love with it. after i graduated, i spent the first five years after school playing piano eight or nine hours a day. emily: where did you play? tim: my livin

what pandora is what's new.t on a one-to-one basis, very individualized, personalized and creating special, unique experience. a curated experience but for a single person by combining the human side with the technology side. >> it's going to be fun to watch. if you love music it's a good time to be a music consumer. you got -- >> it's really interesting. i think we're going to see a lot of cool stuff come up in the next few years. >> please come back. >>> a closer look at the future of the pc according to intel our jon fortt is live at their headquarters coming up next. by the time police arrive on a crime scene, they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm, officers can now access over a billion police documents to find hidden connections, and identify potential suspects. ibm analytics helps one hundred thousand officers work smarter every day. every auto insurance policy has a number. but not every insurance company understands

pandora is little different.ur mission has been building on experience and something we have been focused on maniacally for 15 years. it takes a lot of data and experience so we think we are in a good spot and we compete primarily with radio. this is further evidence that this is where the audience is going. brad: apple has what we like to call a vertically integrated ecosystem. they have their customers credit card numbers and they can put their app right on the iphone. don't they have an unfair advantage over an app like pandora or rhapsody? tim: they bring a lot to the party but this is not the first time a source has come along -- itunes radio came out just a couple of years ago. we have had a lot of competition and ultimately, the task of delivering a personalized radio experience is fantastically hard and requires an immense amount of intellectual property and data both of which we have and have been at 415 years now. we have incredibly precise information about what people like and don't like and listeners

rhapsody's ceo and pandora's founder join us next. and not so funny -- chinese arms makers poking fun at russia's military might over we chat. we will find out why after the break. ♪ ♪ brad: unicorns -- we keep spotting them. today it's blue apron. this grocery delivery company has raised 135 million dollars and a $2 billion valuation. here is what they are planning to do with it. >> we are investing in our film and infrastructure and supply chain to allow us to get fresher food at better prices and allow people to cook it at home. brad: this company delivers fresh ingredients to your home. and they give you the recipe. everything is measured out so you waste less food. they plan ahead with farmers to grow the right amount. >> we are designing a supply chain around and use. -- end use. we can do that all the way back to the farmer in a way that is more economically efficient than a grocery store can. brad: now there is one more player shaking up the grocery business. by now, you know the highlight of apple's development conference was

i think pandora is crossing over into new territory.do north of a billion in revenue this year and we're launching great new products, mobile programmatic and programmed listening. >> talk about the human elements to what pandora does. because that's obviously a huge part of what apple is pitching. to potential subscribers. we now seeing it become a bigger part of what snapchat is doing. twitter is doing. how relevant is it to your business? >> this whole product starts at its core with the music genome project. which is this enormous database of music that we've manually analyzed, for 15 years a team of experts has been collecting musical characteristics, it's how we connect songs. we take that and marry it to this close to 60 billion pieces of thumb up, thumb down feedback. which is incredibly precise information about how someone wants to listen to music. you put those together and you get the perfect play list system. >> my colleague jon fortt has a question at the studio. >> my question has to do with the referral pileline are peop

i said pandora. rachel, what is pandora?usic station, radio -- >> jimmy: that is right, it's close enough. we have a tie game. this is our final question. >> oh, boy. >> jimmy: the final question is -- for rachel, you get to try first. what is a pandora's box? >> does it have to do with music? >> jimmy: it does not have to do with music. >> does it involve money? >> jimmy: in a way, kind of, yes, a little bit. >> do you keep money in it? . >> jimmy: you don't know, do you? all right, katy. for the chance to win it all, what is a pandora's box? what is pandora's box? >> pandora's box was when they opened the box, the evil things came out. >> jimmy: is that right. [ cheers and applause ] >> jimmy: that means katy is still our champion. congratulations, katy! [ cheers and applause ] >> jimmy: we offer you a special prize. cousin sal thanks for playing "generation gap." we have music from a thousand horses, jeffrey dean morgan is here. be right back with wanda sykes! [ cheers and applause ] ♪ >> dicky: portions of "jimmy kimmel

when you think about pandora, it is algorithmically driven. people program to stations and identify the blueprint of the song. but playlist are not curated. with what these folks are doing they are taking a cue from sirius xm. it is similar to eight tracks. with a tracks, it is a plurality of voices. people around the world are making playlists. emily: should other companies be worried? >> for sure. it is to halt. defaults are powerful. they brought out apple maps 3.5 times they usage of number two, which is google. anything's that is default, it has an advantage. >> i think they will bring music streaming mainstream. they have 800 million itunes users. i don't view it as a threat to incumbents. the market will be big. emily: when you look in numbers in terms of what it could add to the bottom line, 15 million subscribers like spotify, that is less than 1% of revenue. how big a deal of this -- is this to apple? >> i don't think it is a big deal. the presentation was all over the place. it felt like, we are doing music because people love music

also comes with a 24-hour radio in response to pandora.g said, some comments on what the developers conference was all about. as usual the apple keynote was a geek-fest, yet somehow managed to be 35 trillion times cooler launch. tidal basically, a host of upgrades where the iwatch can be used, how it can be used. there is a built-in capability on this watch using apple pay. just one comment i want to take note of. apple watch owners will be able passesfor london transit with apple pay. g.at is a hashtah that is what has been trending. expect more threat the course of this day. back to you. , it'sd: coming up next the tuesday edition of "asia edge." is thest on today show head of em ea. he will be joining us a bit later on. we will also wrap up the day's stories thus far. ♪ mark: i mark halperin. john: and i'm john heilemann. i hope you book your hostels in advance. ♪ him him happy national veterans day, mark. in our lineup tonight, the supreme court defying, but first, german dining. as the bare naked ladies might say, "what a week," until

pandora trading lower by nearly 4%.s speculation that you will see pandora soffer tickets there is a lot of competition among the streaming services now. julie hyman joining us from the breaking news desk. thank you. standing by for more developments from the apples developers conference as miscone center the center live in san francisco. we will bring you the latest as we continue in just a moment. ♪ mark: welcome back to the bloomberg market day. i am mark crumpton in new york. the announcements are coming at the worldwide development conference where a keynote address is underway. tim cook making an announcement moments ago about apple watch at. -- apps. >> today we are bringing native apps to the watch with a new version -- [applause] with a new version of the watch os, which gives the developers even more time to create even greater apps for the watch that world change the world. all of thelaw -- for latest headlines, we go to adam satariano. you have a revved up crowd. they were pretty excited about that announcem

and pandora serves its own role in the market.if you are the first mover, which modify and pandora both were, you do get to keep that advantage as long as you keep doing things right. adam: correct. betty: the problem i see both is that apple shares have been down the last few days. they were down yesterday after the news and continue to faulted one of the biggest decliners on the nasdaq. clearly investors are not impressed with this. why do you think that is? i think it is a reaction to the total package of stuff presented yesterday. while the commons i read was that until i see the new cell phone or the new mobile, what is going to happen with the next generation of that device, how are they going to move the price? a lot of the stuff yesterday was catch up stuff. they look pretty good, but it was catch up stuff. betty: it was aggregate news. and there was a software update. on the flip side, for m music artists and industry, is this a game changer for them? yes, it is potentially good and here is why i think it is. we all know

i think that there is a lot to be said for the expose that's provided by spottify and pandora pandorathink obviously artists would prefer to get higher royalties, but i think that a lot of consumers just aren't going to pay the premium tiers. i think you'll probably see a mixture of both. >> okay, michael nelson, thank you for taking the time to talk with us. >> thank you. >> now with 16,000 homicide last year venezuela is one of the world's most dangerous countries, and the police themselves have become victims of crime. we look live from caracas latin america as a whole is a violent region what makes venezuela stand out? >> well, yes it is the second most murderous country in the world. it comes second only whatever honduras. countries like honduras, for example, doesn't have that really consolidateed gang culture like el salvador has. it's not going through a drug-relateed conflict like mexico or even colombia. the government does not regularly take figures and government officials have been known to blame the violence on people wanting more. the police have been increasingly murde

a shot across the bow for companies like pandora and spot five. is internet radio really radio or just a playlist? dave: they have taken a similar approach to a track in that they are focused on duration. if you take a service like pandora, it is algorithmically driven. the playlists themselves are not actually curated. what beats one is doing is curating a channel taking a cure from traditional radio and serious xm. -- serious xm. from every genre and culture in the world. emily: should spotify be worried? guest: of course because it is a default and default are our full. they had apple maps and any time something is default, it has a big advantage. brian: they are going to bring music streaming mainstream. they have eight hundred million itunes users, so i don't view it as a threat to the incumbents. it's a big secular trend and they are going to make it legit. emily: if you look at the numbers and how much you can add to the bottom line, if they have 15 million subscribers, that's less than 1% of revenue. how big a deal is this for apple's busi

pandora has 79 million users. a majority of the users on pandora don't pay a dime. think that this is going to be a great thing for apple? >> first of all, they have a larger installed base in both those companies. apple has one of the largest install base of customers than any company in the world. so they -- >> do you mean the 800 million credit card numbers on file? >> i mean the people who have iphones, who buy content from itunes is the largest installed base of customers anywhere. so i think if they were to adopt a pay-one price all the music you could consume, i think that would not only be a competition to spotify and to pandora, but even to xm satellite radio in cars. because there is a link to put your -- attach your iphone to your car and stream music from your phone into your car. >> dan, should we look at the streaming music service as a software layer or as a revenue stream? do you think in your model of apple that this will actually be a stream of revenue that will move the needle? >> financially speaking it's not even bread at the restaurant in terms

certainly not three and i subscribe to pandora as well. does this suggest that there's trouble in the music download world or that apple is moving away from that pay per cut pay per album download model? >> you're absolutely spot on. it's true that apple had no choice but to make this transition. remember last year download revenues fell about 9% streaming popped 30%. that's what the growth is and that's why ceo tim cook moving hard and fast into this new model. >> josh thank you so much. in response to apple introducing it's new music service shares of pandora traded lower falling almost 4% in today's session. >> well ceos are becoming more spesti fewer chief executives choose to increase sales and hiring this year. ceos are looking for 2.5% economic growth this year. that's down slightly from the prior forecast last quarter. the chairman of the group, at&t ceo says congress should enact tax reform and pass the trade promotion authority to help support the economy. >> business economists are also a bit down beat on growth. a new survey fr

i will ask pandora and rhapsody how they went on competing with tim cook. plus, investors are betting on plans for a stock split at netflix's shareholder meeting today. we have everything you need to know. and activist investor paul singer takes another shot at samsung's lee family. all that ahead on "bloomberg west." now to the lead -- jack ma has big dreams for alibaba and they center around american businesses. speaking to the economic club of new york, he said he aims to reach 2 billion customers and

pandora and subscription sites like spotify pay songwriters fractions of a penny to play a song.e, pharrell wrote "happy," a pop hit in 2013. in one three-month period, pandora played his song 43 million times. his royalty check was $2,700. songwriters have appealed to congress to change how streaming sites pay royalties. ♪ when i think about ♪ roxie dncs new hope for better paydays in taylor swift the songwriter who got apple to change its tune. mark strassmann, cbs news, nashville. >> pelley: severe storms are tearing through the midwest tonight and that's coming up next. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. with liberty mutual new car replacement, we'll replace the full value of your car. see car insurance in a whole new light. lib

google and apple, pandora taking a dive.cks are these taking a dive today. this one off the lows of the day, still falling for a third consecutive day. it's touching his lowest level since august 2012 after news out of macau was released that gaming revenue dropped to less to about $548on million. macau revenue weakening there. that's hurting not only when resorts, but other gambling stocks as well that rely on macau for the lion share of the revenue. they don't make the money here on the strip anymore, they make it over in china. i want to touch on the stock that is near and dear to my heart, one of the best takers aboutere, falling today 1.75%. they downgraded the stock because lower volume. some of us aren't doing our part, mark. and also because chances of a further take over from ab inbev's. matt: are you a fan of the silver bullet? mark: i have been known to have one. matt: the mountains on the can turn blue. that way you know it's cold enough to drink. sometimes you can tell from your hand. but i like the blue mountai

shares in pandora stock down 4% as apple released its music streaming service.orting live from our san francisco newsroom scott budman abc bay area news. >> can apple do it again. thank you, scott. >>> exciting to watch, or as we like to say around here torture. tonight the warriors in cleveland after two heart-stopping games here in oakland. our nbc chopper at the oakland airport this morning as the team took off for ohio. the warriors trying to shake off last night's overtime loss to the cavs. still hard to even say it after what happened last night. here's the skinny though. nothing comes easy in the nba finals. this series now tied one game a piece. games three and four are tomorrow night and thursday night in cleveland. stay with us for our continuing coverage of the nba finals. we're on the road in cleveland. cheryl hurd and bob redell reporting throughout the week. check in for their live reports and also follow us on twitter and facebook. >> i'm going to lose my voice by the end of the series. so much screaming and yelling. >> it is hard to watch but gre

. >> shares in pandora media closed down nearly 4% as apple announced its music streaming service. shares hit an all time high in july 2014 but moved lower since then. open based pandora provides online radio services and attempts to predict the users music preference by using algorithms. so is it a real threat or has it left it too late to make that impact? get in touch with us here worldwide@cnbc.com or cnbcwex. >> i was expecting more. they did not deliver. >> it does seem like the announcementunderwhelmed but they usually get these things right. i think they'll pull it together. >> we'll see. i enjoyed the ceo of spotify's launch on twitter he said oh okay. more on the financial volatility gripping turkish markets coming up after this break. >> hsbc has an aggressive turn around plan. >> european stocks hitting a one month low following a weak return in the u.s. this as former fed philly president tells cnbc the central bank should not wait too long before hiking rates. >> it would be better for us to start sooner and give us a better chance at being able to do it gradually bec

pandora lets me curate my own radio station. there are a lot of questions around this service.p apple taking a huge in terms of this is the business that they have revolutionized in the beginning. apple is trying to get out front of the business. one of the other interesting things we had here today, not just what is a news, but who was presenting that news. saw the first two women presenters on stage. jennifer bailey introducing new features for apple pay. certainly that is a sign of tim cook. this is a guy who cares a lot about diversity, who cares a lot about social progress. was another thing that got a lot of applause here. alix: if you had to pick one thing with a lackluster response, what was it? annalee bank there were a few lackluster responses throughout the show. we saw a lot of refinement updates to the ios. operating system software, , all of these little things apple is using to refine the experience and all the things we do with our apple products. a lot of interesting stuff coming out with regard to the watch. just goes to show how fast rings can develop and mov

brent: they will face some headwind between pandora and spotify. this is an necessarily about making money from streaming music. it has largely been a very difficult game. this is about expanding the ecosystem. the sum total of apps and services bundled in with their devices. they have to sell devices in order to make money. they are hoping this music service will be the cherry on top of their ecosystem. brent: will this be the beginning of spotify's swansong, if you will? apple will be a main rival. will they decimate spotify? >> it very well could be. it they have an at -- a captive audience. in this new app is going to be bundled with their new devices that are sold with the next major update when it comes out in july. brent: we will see. thank you very much. sarah: the islamic state is claiming to take full control of the city of sert in lybia. -- libya. they are unhappy about a proposed deal to the conflict ridden country. brent: they submitted a draft proposal on tuesday. libya has had towo rival governments. south korea has reported its seve

when you take that away, you open up a pandora's box of evil. >> is that pandora's box already open? >> wide open. wide open. absolutely. >> in this atmosphere finding kevin jones killer may prove difficult. finding meaning in his death may be harder still. >> why was kevin an unlikely victim in this city? >> he was different. he knew what was around him but he wasn't trying to take part in it and that made him stronger for that because it's so easy to get caught up. what you see right in front of you even though you know it's bad but when you see -- when you know it's bad and stand firm on what you believe in and this be a living example, it's hard to see somebody get lost because of the chaos that's going on around them. and if we had more people like kevin that thought the same way maybe there would be less chaos. >> do you think you'll ever make sense of it? >> no. you ain't going to make sense of that because they shot him multiple times. if he was out in the street going places every night doing this, doing that, maybe i can understand, and learn about how he is and how he like

you know it as pandora.more than 80 million people tune in every month to listen to millions of songs on over 7 billion pandora stations.

apple is expected to announce something to compete with spotify, pandora and rhapsody. now apple made a ton of money by getting people the ditch their plastic cds and buy digital downloads. however sales have been slipping. now apple already does this with the itunes music but that never really took off. they're going to try it again. >> we're final hi going to have the debut of the new streaming service. this could include things like guest deejays and probably cost about $10 a month. >> reporter: also on tap upgrades to ios, and apple pay. and if you're going to expect some kind of a big announcement with apple tv, well, that's in the going to happen. app -- not going happen. app system reportedly still in negotiations with broadcasters and isn't ready just yet. the worldwide developers' conference keynote address starts at 10:00 this morning. we're live in cupertino, kiet do, kpix 5. >>> a former stanford university swimmer is due back in court today for a hearing, brock allen turner pleaded not guilty in february to five counts of sexual assault. turner is accused o

in the meantime, how this could affect other players in this music business, pandora chief among themblicly traded down 2% on this apple news it could be facing some competition. apple is down as well, i should stress here, in what has been a soft day certainly for technology stocks. are expectations a little too high for apple or what it's trying to come up with? tech watch extraordinaire kurt can knudsen on that. >> downloadable music, the music on itunes we would pay for and keep on the cloud or on your own devices and say hello to apple really now chasing, as you've mentioned, pandora, spotify and another one who's really cracked this premium category where they get you in for the free trial, and then you hook up for about $10 a month for the service. this is exactly the price model that apple is looking at. it's rumored to come out today -- neil: doesn't it hurt itunes? >> well, i think they're going to use itunes as a method to get people there. itunes radio which tried as a free radio service is still going to be kept alive, but i don't think it's going to be relevant much long

but i'm much more excited about names like pandora. i'd much rather try to buy that at 15 than i would apple. >> all right. time nor pops and drops. big movers of the day. big pop for juno therapeutics. >> celgene's investment in there. the stock was up actually a lot more at one point. i still think you can stay long juno. celgene wins in this. >> drop for abercrombie & fitch. zbln a great day in retail but this specifically. fbr downgraded it to market perform. and it's okay here. >> pop for pentair. 7%. pete. >> looking for this value. they position starting on may 7th and got into a full position 7% already. they're expecting the stock to go a lot higher from here. very impressive the way they did it. they did it with stocks, also did it with options. 15% of their position through options they were able to get themselves into a very large position. i think this stock's going a lot higher. >> drop for sony down 6%. bk. >> capital raise stock and bonds. tough environment to do that. if you want to play japan just short the yen. ycs i

dagen: to music streaming service could very well put spotify and pandora on the ropes. spotify already struggling coming already struggling, not just launching video because it's trying to wrap up or convince people to pay $9.95. apple will be priced at $10 a month. it has been working hard on relationships with physicians. it has been trying to make exclusive deals with florence and the machine and my favorite part is on the radio version of what apple is doing, that $10 a month you pay them you can listen to anything. also the streaming radio. it is like a traditional radio with cheap chairs. it is curated music which is kind of an amalgam of the traditional internet streaming radio and like sirius xm. trade to a good twist to something different you do not get through spotify or pandora. >> it could actually be a threat to sirius. now you connect your phone a device to your car radio. dagen: you stream it through the system in your automobile. maria: a good point because you never know who apple will try to take out. you want to watch the satellite companies as well.

. >>> move over pandora and spotifiy the tech giant announced's new music streaming service. the developer in san francisco and what's going to make apple music different from all the others. >> reporter: it feels like it's going to be an all in one type of deal, and what i do know is apple music will be available at the end of this month, and developers say it's the answer to a fragmented mess of music and developers used spotifiy, pandora, and facebook as some examples of how and where people go for music. it claims apple music will combine all of that where you can get unlimited streaming music, play list suggestions and also going to include a 24/7 worldwide radio station. rap artist drake made a special appearance to add his support to the new service. >> it's amaze to be part of something that i believe in and this is something that simplifies everything for the modern musician like myself and the modern music consumer like you. >> it's also designed to give the latest updates on musicians apple music will also allow artists to share content and pictures. it's going to

pandora by the way that stocks down. about 8%. very tough. truth you i'm a pandora girl. i actually pay for it. time inc. doesn't have a lot of compassion when it comes to workers. "the new york post" reporting a loving union jobs from the company's pre-media department apparently heading out to the philippines. the time doesn't want managers telling workers in the u.s. they are sorry about the jobs being shipped overseas. according to a confidential internal memo, managers received a list of talking points and had a list of recent seattle in new york. that might be practiced. they include things such as remained calm, don't say you are sorry, give them space and be concise with their message. nicole: i think it's really interesting. 5280 i.t. people moving downtown. don't say sorry, don't engage in conversations. here is the number for security. i thought that i'm thought that i'm one of the talking points. the security phone number because that is rare. lauren: and reminds me of the movie up in the air with george clooney. sandra: it is a tough thing to do if you've eve

apple wants to compete with spotify and pandora. apple's conference will be held tomorrow in san francisco. the features and pricing still under wraps. it's expected to revamp itune and the streaming radio service. the change was expected after apple bought beats headphones last year for $3 billion. >>> well the pope has a few harsh words for techies while traveling back to the vatican. pope francis said dependents on computers causes, quote, suffering to the soul. he did not go so far as to condemn emerging technology but the pope does warn against letting technology consume every single moment and enslaving ourselves to keyboards and smartphones. he's a wise guy. listen to this also the pope said he's not watched television in 25 years. >>> 37-year wait is over! american pharoah is finally the one! american pharoah has won the triple crown! >> the pope doesn't watch tv? >> he missed it. >> he didn't see this. it was thrilling for the 90,000 in taensattendance and the millions watching at home. what's next for the latest triple cro