erwin erlichman, and john of rhapsody.amilies around the world have stitched -- ditch their devices and honor of screen free week. it is cutting off -- is cutting off screens that beneficial? you can watch a streaming on bloomberg.com and amazon. ♪ >> welcome back. this week, thousands of children and parents gave up their tech tools for screen free week sponsored by the campaign for a commercial free childhood. spend anpreschoolers average of 30 hours a week in front of the screen. is cutting caps off really the right approach? >> good to see you. week in front of the screen. it sounds like a lot. >> it is real. you think about in the context andpads and smartphones, the tv set. kids are in front of the screen too much. the idea of a week with no screen time is a good idea because it is a wake-up call to parents and kids glued to the screen. >> i saw members that astonished me. two-year-olds to four-year-olds have a tv in their room. 45% of five-year-olds today-year-olds. >> they are ridiculous. here is the deal. parents

i personally believe with the work that i didn't rhapsody, that is the future.his is where things are headed. for a company to ignore that, apple needs to make sure they do whatever they need to do so that their view of downloads from the itunes store don't really become the same thing that cds were in the music industry. a decline is rapid and very severe. >> i'd like to correct myself pretty video was posted on tyrese gibsons page. jon erlichman, what you make of the fact that the video was put up and then taken down? maybe there is a potential culture mismatch coming? >> i think it makes it more fun to cover the story. on the cultural side, there are similarities between beats and steve jobs wanted a great experience for the consumer. the reason it was started by jimmy andrzej because we lived in a world of digital music. they started with those projects. now they're looking for a better experience through subscription. >> jon erlichman, and john erwin of rhapsody. families around the world have ditched their devices in honor of screen free week. is cutting o

. >> hang on, i want to bring in apple and john irwin, the former president of rhapsody which was the first subtraction service to offer unlimited streaming service for a flat they. what does it mean for you guys? is this more competition? apple,s a signal that not surprisingly in some sense, has seen the writing on the wall that the future is in subscription and the future is in streaming. it's surprising in the sense that you have apple as a company were steve jobs traditionally and very strongly suggested that people will always want to own their music and they won't want to rent their music. this is a sign of a turning of the tide. it's a turning of the tide driven by what john just mentioned, growth in the streaming subtraction businesses over the last three years and the flattening and a decline in the first quarter of almost 14% in the sales of downloads. alex, you say this smacks of desperation, why? >> it is a bit concerning that apple could not do something like this on its own. as john pointed out, it has a history of acquisitions but they are smaller that augment forces al

we have on demand streaming like spotify and rhapsody.>> how do you fight the piracy problem? wheny would anybody pirate you can listen to anything for free on spotify or youtube? every song in the world is available on one of those. the only thing you need to pirate is the seven or eight artists. >> the artist is getting, as we learned from the gentleman earlier, pennies. fractions of pennies per song. >> the music as ms. will grow -- the music business will grow. revenues have to trickle down to the artist. right now there is a logjam with major labels at how revenues are collected from the services end up passing through to the artist. that is where the artists are concerned. they do not feel like they are getting an adequate share. sound exchange, which collects s, theandora and siriu artists get 50% directly. it is a complicated scenario. it is working itself out. within the next two years or three years -- >> pandora's going to cost me more. >> it is still cheaper than your cable bill. to get all the music in the world for that amou

i am just watching matt with a little rhapsody. >> josh, what do you think of matthew's answer about why we are at this point? >> i guess i have a little bit of a different one. probably just a different perspective i come from. i think that -- i think we actually -- i actually do believe that when you write stuff, and matt redeemed us -- when you write something because you are interested in it and you do not write it for the market, you probably write differently. and you write something that is different. and it is not from the intention of, i am going to bring it to market. in the business environment, that sounds like a bad thing, but it is a good thing. and it is unique and has not been done much on television. i think "mad men" was that. to say it, it sounds trite to call it a singular vision. there is resonance in that. there is a lot of stuff behind that, to get very pragmatic, including, i think, technology has something to do with the uplift. meaning it is a show you have to pay more attention to. if you cannot ever watch on a dvr or any matter of on-demand and it is only

i am just watching matt with a little rhapsody. you think of do matthew's answer about why we are at this point? differente bit of a one. probably just a different perspective i come from. -- i think we actually -- i actually do believe that when you write us -- and matt redeemed when you write something because you are interested in it and you do not write it for the market, you probably write differently. and you write something that is different. and it is not from the intention of, i am going to bring it to market. in the business environment, that sounds like a bad thing, but it is a good thing. and it is unique and has not been done much on television. it sounds trite to call it a singular vision. there is resonance in that. there is a lot of stuff behind that, to get very pragmatic, including, i think, technology has something to do with the uplift. meaning it is a show you have to pay more attention to. if you cannot ever watch on a of on-demandtter and it is only on a linear basis on sunday at 9:00 or 10:00, and you are bu