reed hastings of netflix thank you for joining us.t's see, i think -- back to post nine. >> thank you very much. great interview. enjoyed it. straight ahead on the show more from the code conference and hear what the ceo of qualcomm has to say about mobile technology and future of media how they could be involved in making driverless cars. we'll be right back. true business-grade internet comes with secure wifi for your business. it also comes with public wifi for your customers. not so with internet from the phone company. i would email the phone company to inquire as to why they have shortchanged these customers. but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. >>> the size of the economy shrank more than expected, treasuries rallying yet again as revised data end gaits gdp contracting at a rate of what will be 1% for the full year. joining us is mike, who joins us as head of u.s. rate strategy with rbc capital markets. welcome to the program. >

the netflix ceo reed hastings and david wells explained that the internet is a long-term threat for profit for themselves and cost for everyone else. the comcast time warner merger is approved, the combined company would produce even more anti-competitive leverage to charge interconnection tolls for access to their customers. the real question is not what affects the merger may have on netflix per se but on the next netflix that might emerge as an alternative to comcast video distribution business. would a combined entity be able to use its potential leverage over high-speed internet access to stifle potential competition in this way? i conclude on this point, to the extent there may be competition concerns, i would like the witnesses that choose to discuss whether imposing behavioral revenues would be sufficient. as a condition for approval of the comcast nbc universal transaction, the fcc and the justice department require comcast nbc to take affirmative steps to foster competition, including volatile compliance with net neutrality as well as steps to get the public interest. comcast has

reed hastings came out against the deal last month.is week the tv executive of univision raised concerns as well. as netflix resists, most firms just try to befriend comcast. so what's this all about and why should consumers care? joining me now is the guest i mentioned, peter lauria, the editor for buzz feed. one of the his articles was head lined, why big media won't stand up to comcast. thanks for being here. >> thanks for having me, brian. >> tell me why big media won't stand up to comcast. >> it comes down to money. if they're paying you millions and billions of dollars each year to carry your programming, you kind of don't want to bite the hand that pays you. that's one of the reasons. there are a bunch of others. another being that it takes someone with a special backbone to stand up to the bully in the school yard, right? they're trying to do this stuff off the record behind the scenes, and i sometimes wonder if they would have went on the record, you have an opportunity right here. there's an opportunity with reed coming out,

meend time at the code conference we spoke with reed hastings in the past hour.the risk of launching new content and the challenge of avoiding backfiring and overspending on those originals. take a listen. >> i think if we don't have a big original failure we're not trying hard enough. i keep pushing our team they are doing bolder and bolder things. i'm sure at some point they will jump the shark and i'll regret it. i think we should try new things and be bold >> he has concerns about a potential comcast time warner merger. we asked about brian roberts saying netflix wants to move costs away from its own business motel. here's hastings response. >> comcast seems would love to be the post office and, you know, have a national monopoly and collect on everything. that's not the way the internet works. the way internet works free connectivity between these difference sources. third of the internet is customers using netflix so maybe we should get a third of the comcast revenue. if they want to give us a third of the revenue we'll pay a third of the cost because the r

international correspondent hans nichols has more on reed hastings ambitious plans. know where she is at on the tally. >> i was working out how to say "house of cards" in a number of languages. all i got was [speaking french]. >> they're going into belgium. look. at this point of the program, i get to admit or maybe kind of admit that i can stop my questionable legal behavior in trying to trick netflix that i am back in the states. for those of you that use virtual private networks, no longer. netflix may be coming to france, germany, switzerland, australia -- austria, and luxembourg. you can watch streaming online. what reed hastings says is he expects 70%-80% of revenue to come from overseas. that's remarkable. the total subscribers are around 48 million. in the states, it's 35-36 million. at least three fourths of the customers are in the states yet long-term they see revenue coming from outside of north america. the other interesting thing about this story, we talk about consolidation in the telecom area. time warner and comcast. this makes the case that everyone

we will break down reed hastings' ambitious plan. ♪ >> time for today's hotshots. bull challenged them to port -- to display some of their intense tricks. extreme stunts and breakdancing moves. extreme sports fans are heading to the mountains of northern california to take advantage of the best whitewater conditions. thrillseeking kayakers took on the rapids and got a bumpy ride. i do not know why anyone does this voluntarily. england could win the world cup live on air for you. >> right now, this is the case or go pro. let's see how the markets are trading right now. jonathan ferro has your asset check it -- asset check. >> thank you very much. flat equity markets, taking a dip. bucking the trend, up by about .1%. a lot of connectivity across the major benchmarks. if you are waiting for news flow, it tight. bank of england minutes in 10 minutes. adderall reserve minutes later today. right now, there is a global debate between federal bankers and the exit. that massive stimulus. fantastic bloomberg interview with that board member over at the bundesbank, concerned

. >> reed hastings is here. netflix pays you for some access.ou anti-competitive leverage. have you talked to him? where does that conversation stand? >> we have talked to him and we've had an agreement between the two companies which we did five days after we announced time warner cable. the information seemed at the time he put out positive statement ps it's a fundamental business dispute. he would like all of his traffic not the connectivity, but just the transit, the cdms they call it, content delivery networks, to the open internet. that first part the first mile, not the last mile, he would like that all for free. he's been paying other carriers to do it for him. every other major traffic provider uses transit or somehow pays someone to get it to the open internet. and, of course, he would like it for free. it's a business dis putt. who wouldn't like it for free. you used to pay the post office three quarters of a billion dollars to send dvds around and they're used to wanting it to now be free. the other hand, we don't want to charge netf

. >> that's our boss brian roberts earlier this morning with reed hastings with netflix. >>> meanwhilempany has at the pipeline here at the code conference. google glass, content lensesnd self-driving car prototype. it brings us to this morning "squawk on the tweet." google x has eight projects it's currently working on. what might be some of others they are cooking up. eric writes, biometric base payments. i have no idea how that would work. i think google x might be working on real-time parking availability in new york city that will be incorporated into google maps. career guidance. google will match you with careers and based on that. i would say they have made the lion's share of the headlines. >> i think people are excited by that and biometric based payments would be a slip at check out. >> their thing, the realtime speech translation is going to be ready by the end of the year, people. come on. >> it is a little more immediate. but it is another testament to the code conference that all these big very large cap tech companies save some of their best announcements for this parti

i'm sure reed hastings is happy that nobody is freaking.have original programming and they have to pay for distribution as well. >> understandable there. >>> let's go to the sound investments and talk about the tech industry. what's that about? >> it's the dynamic duo of dr. dre and jimmy from beats. most famous for the colorful headphones from $175 up to $450. they were on christmas lists. financial times reporting that apple will acquire them for $3.2 billion. the washington post has chronicled the career of this dynamic duo, everything they touch turns to gold. jimmy will be an interesting acquisition as a talent for apple. he may be on their board. he may run the entire music division, which beats also has streaming music. that's very interesting in light of pandora and spotify and the fact that increasingly people are not buying songs, paying per song. they're going for the subscription model. itunes could change as well. >> regina lewis, very interesting. thanks for bringing it to us. >>> could this tropical scene become the site of a

and it seems reed hastings is even marveling these days at where the stock is. >> some days i wake up and i think it is too high, other days i think it will go higher. boy, the short term guessing is just hard. >> hard indeed. >> you have to appreciate his honesty. this is a guy who -- >> he's said it before. >> you're right, when it was lower than it is now. so credit to him being surprised himself. i'm surprised that it's actually been able to not just get off of that 350 or closer to 300. but you look at the stock now, it's exploding to the up side. i've missed this one. we talked about the international growth and germany and some of the others where there is significant growth. i might have to jump on late. >> apples beats is just the latest transaction in a huge year for m&a. so is that a good or bad sign? terry has 20 years of experience and advised on more than $300 billion worth of deals in his career. welcome back. good to see you. apple pays $3 billion for beats. what does it tell you you? >> it tells me that they have a currency with a very high pe and all of the numbers w

. >> tune in next week for the coverage on "squawk alley," including a a sitdown with reed hastings, and ceos of twitter, dropbox, blackberry, that and more next week. you guys have a lot going on. time for squawk on the tweet. a big week for mascots. first mcdonald's launching the toothy, and today facebook's privacy dinosaur is getting "the new york times" treatment, making some unflattering comparisons to microsoft's clippy and twitter's so-called fail well. i like that personally. that brings us to the squawk on the street. tweet us. we'll air your responses later in the show. >>> coming up, russian president vladimir putin not exactly happy with president obama. here's part of cnbc's exclusive interview this morning. >> translator: who is he to judge? who is he to judge, seriously? if he wants to judge people, why don't he get a job in court somewhere? >> female translator. we'll have more from the russian president, including what he had to say about this weekend's elections in ukraine. and later on "squawk alley," is uber worth $12 billion? behind the car service's massive val

. >> speaking of the distribution divide headliner, in netflix ceo reed hastings.er cable. we'll hear what he has to say coming up on "squawk on the street" before he takes the the stage later today. guys? >> okay, julia. thank you. those hollywood types. >> i like what he said about silicon valley being overconfident. >> $30 billion when you're worth that tends to make you a little more confident in sergey's case. coming up, edward snowden. defending his decision to leak classified documents. patriot john kerry saying man up. come home. you're a coward and traitor. we'll discuss that next. and ukraine. and maybe the west point speech. also, economic data. weekly jobless claims will all be released before the market opens. just stay with us ahead. >> nsa whistle-blower edward snowden telling his story to brian williams in a one-hour special that aired last night. >> do you see yourself as a patriot? >> i do. you know, i think patriot is a word that's thrown around so much it can be devalued these days. being a patriot doesn't mean prioritizing service to government

. >> reed hastings adamantly says he is not up for sale.ut he has not got a long-term sustainable business model because he does not own any of the content, he rented, and it is getting more and more expensive as more important -- as more and more people, to his base. at some point, nobody talks about the off balance sheet contingent liabilities that he has a contractual content he bought 2, 3, four years out, but he's got several billion dollars on his liability side of his -- a balance sheet that if he does not keep growing, he can't meet. >> the only way to get deeper into content was spending a lot more money and the question is, whether the money is still available. >> not only is it available, but the odds of creating house of cards any time you roll the dice is enormous. it, ifvision can do hollywood can do it, what makes anybody think that despite the metrics gathering is on what you and i like to watch, it is a losing game. >> although the model is good. i hate having to watch "game of thrones" wants a week, i like to watch it all

netflix ceo reed hastings launched the company's biggest expansion in almost three years. online video service into germany and france this year, and he wants netflix to establish global dominance for the amazon prime instant video -- and three quarters of their customers are in the u.s.. they are hoping to sign up almost one million customers overseas. at&t plans to buy directv for nearly $49 million. the deal hinges on football. the nfl sunday ticket package ends this year. at&t will call off the merger if this is not renewed. christina, you and i might not watch a lot of football, but let's get this in perspective, how important is this deal? >> it is very important. there are 2 million subscribers, paying anywhere from $240 to $330 a piece -- for the service that lets you watch out of market games on sunday. what this means for the top line is the revenue generated is around 660 million -- based on the numbers that we have. but they do not officially break those numbers out. because powerful consumers are willing to spend $1000 to get their football. is, whyuestion rea

netflix ceo reed hastings said the deal would create a single company with anti-competitive leverage over the broadband /internet market. netflix will not have a seat at the hearing today. cogent communications will be there to speak their part. the opposition will be well represented. >> what power to the lawmakers have over this deal? actually, this is about public opinion. the green light will have to come from the department of justice and the federal communications commission. the consensus seems to be that the deal will in fact go through. lawmakers are attempting to ask questions on behalf of their constituents. will this raise cable bills is the big concern and the questions they will raise will give regulators an idea of the political pressures they might face and will evolve some sense of the kinds of restrictions they might tack on to the approval of a deal. >> thank you very much. and shaking this hour -- barclays ceo anthony jang chen's -- jenkins is cutting 7000 jobs at barclays which is about 1/4 of their total workforce. they had a 49% drop in profits and he wants to

the netflix ceo reed hastings thatavid wells explained the internet is a long-term for themselvesit and cost for everyone else. mergercast time warner is approved, the combined company would produce even more anti-competitive leverage to interconnection tolls for access to their customers. not whatquestion is affects the merger may have on but on the next netflix that might emerge as an alternative to comcast video distribution business. be ablecombined entity to use its potential leverage over high-speed internet access to stifle potential competition in this way? i conclude on this point, to the extent there may be competition concerns, i would like the that choose to discuss whether imposing behavioral .evenues would be sufficient as a condition for approval of the comcast nbc universal transaction, the fcc and the justice department require comcast nbc to take affirmative competition,er including volatile compliance with net neutrality as well as steps to get the public has indicatedast it would extend the same commitments to its proposed of time warner cable. additionally, comcast

co-founder jack dorsey reed hastings and drew houseton are among the co-signers of an open letter.nwide campaign to broaden access to computer training. good morning. >> good morning. these days've finance you're not in a highly technical field, it's likely that your work will involve some interaction with computers. that's why one former microsoft developer is leading the charge to expand computer science education to every school. >> we are going to continue to write algorithms like we did yesterday to create monsters. >> you don't often hear sentences like that in a fifth grade science class but today's lesson isn't taught in most classrooms. alana aaron is teaching her students how to write computer programs. in other words, how to write code. code is the language you type into a computer to tell it what to do. it's like a recipe or adriving directions. the concepts can be taught offline. >> this is the code to give a computer to recreate that computer. and then applied online. >> here students drag and drop the commands necessary to lead the angry bird. >> grab it. and over he

reed hastings argues that i as peace are centrally charging an unfair toll so can you give me a brief recap of the arguments around net neutrality in this idea of a toll well basically it goes around content providers versus the people who are actually getting the content you and me in the last mile in our homes and so we have boils down to is you and i we want to get netflix or whatever other content that we want and we want it and we don't want it to be discriminated against or we don't want it to be slowed down in any way shape or form but the reality is that certain content providers like that flicks are actually taking up a huge amount of the bandwidth at certain times apple for instance when they have the downloads of iowa west when they update their. apple i phone system operating system they have huge ben with constraints and so apple has made an interconnection agreement with peace in order to make sure that they have enough bandwidth of those particular times and so the question is is that a toll the price that apple's pain and now that netflix is play netflix says yes it is

in that position to the comcast-time warner merger, netflix ceo reed hastings and david wells explainedg-term threat from the largest isp driving up profits for themselves and costs for everyone else and that the comcast-time warner cable merger approved, the combined company would possess even more anti-competitive leverage to charge arbitrary connection for access to their customers. but the question, however, is not what effect the merger might have on netflix but the next netflix that might emerge as an alternative to the video distribution business. would the combined entity be able to use its potential leverage over high-speed internet access to stifle potential competition in this way? so, finally i conclude on this point. to the extent that there may be competition concerns, i'm like the witnesses that choose to discuss whether in opposing behavioral remedies would be sufficient. as the condition approval for the comcast nbc universal transaction, the fcc and the justice department required comcast nbc to take affirmative steps to foster competition. including voluntary complian

netflix up on an interview with reed hastings here on cnbc where he made a lot of news and brought ain today's panel, our own simon hobbs, cnbc contributor carol roth, our own sharon epperson joins us as well. also with us for more on today's market action, "fast money" market trader jon najarian. >> dr. j, what happened today? >> i think overall, bill, it is just continuing to climb higher after draghi's inevitable announcement next week. i say inevitable because i think we all believe he is going to cut those rates. that's one of the reason our bonds are going lower. the gdp re-adjustment was another reason. i think overall there is a number of positives out there. more people are looking at the glass half full than half empty today. >> i did see you shaking your head, simon, about the ecb cutting rates next week? >> i think the ecb will cut rates the next week but i'm not sure we're going to get qe. i am absolutely mesmerized by what's happening to these great oceans of fixing not only our market but what's happening in europe. dutch yields at the lowest they've been for 500 years

are you a supporter, somebody like reed hasteings who may come out at some point.appy about this? where are you? >> we are long-term bullish on both the investments going into content, which are sizable investments going into drift bulgs, really the u.s. government's role of what they've proven overtime to keep access opened for people. so we believe that ob access and high band width pipes with lots of grey content, there is an ecosystem there. it's not about one set of assets or companies on that neutrality or not. all the investments have to be taken into account. so if it were up to us, we love net neutrality. with rea big video investor, is remember. are you a band of consolidation or not? >> i'm a finance of making sure the right companies have models that are profitable and allow distribution to grow. this country has a lot of room to grow in terms of the infrastructure to speed up the networks. so i would say that's up for the government to decide. but worry big fans of net neutrality. >> struggling to pin you down, we appreciate it. we hope to see you agai

this is the thing you say these guys are good, reed hastings gets it, about doing what's right for shareholderswanted apple to buy netflix when it was at 70. so much for that. netflix is caught up in the vortex al la tesla. can you value them on subscriptions and subscription sign-ups? that worked for a long time. not working now. i have to tell you this will not have impact. it's just nice -- >> from a shareholder's perspective wouldn't you want the price increase. i'm going to quit facebook -- or quit netflix, nobody did. if they jacked the price by a buck that will help margins. >> i wanted prime to raise prices, amazon to raise prices for prime. they did that. what good has did it do? these stocks don't trade on expected earnings per share. they trade on growth. and this may be -- now people will say hold it, maybe they were going to drop -- maybe growth was going to drop so let's like change that. so -- and when netflix does these things where they go back on it, people will be confused. netflix is a cult stock. people driving tesla, they like tesla. that really worked until the last week