it was founded in sweden and has just hit us recently so with spotify the user can stream music but unlike pandora you can actually search for the specific songs you want or an entire album you can also make playlists and share them with your friends and it's all perfectly legal with this program so now you're familiar with outlook ation let's go back to the survey and sweet it a new industry study shows over the past few years as the number of spotify customers increases the number of pirates has decreased by twenty five percent so why is this trend in sweden got a for us here in the u.s. because spotify is becoming more popular here by the day so perhaps these figures could be a good indicator as to the future of pirated music here in america approves of people are just illegally downloading music out of spite they've just been waiting for a legal option with a greater music selection and they're actually willing to pay for it and while spotify is still a free service here in the u.s. swedish members do pay a small monthly fee so for those who are protesting piracy laws like the p

. >> this is what spotify is going to add to your timeline, the songs you listen to your radio stationalbums that you listen to and you get this nice big story of what it's going to look like. >> reporter: now if you think something is interesting on your friend's page, you don't have to like it. you will have a variety of option signifying that you read it or listen to it. what if you don't like the changes, including the profile page which has more video and photos or the timeline which allows you to revisit years of posts? >> people spend lots of time at facebook and what facebook does is they go and move all the furniture around. and then people come home and they trip over it and get mad. >> reporter: some users like some of my facebook friends want to know not just why there are so many changes but why they are not consulted about them ahead of time. i asked mark zuckerberg that question in a news conference where they didn't allow videocameras. i said do you think people are too sensitive to change or are you insensitive? his response, facebook believes they do consult their use

. >> this is what spotify is going to add to your timeline, the songs you listen to your radio stationms that you listen to and you get this nice big story of what it's going to look like. >> reporter: now if you think something is interesting on your friend's page, you don't have to like it. you will have a variety of option signifying that you read it or listen to it. what if you don't like the changes, including the profile page which has more video and photos or the timeline which allows you to revisit years of posts? >> people spend lots of time at facebook and what facebook does is they go and move all the furniture around. and then people come home and they trip over it and get mad. >> reporter: some users like some of my facebook friends want to know not just why there are so many changes but why they are not consulted about them ahead of time. i asked mark zuckerberg that question in a news conference where they didn't allow videocameras. i said do you think people are too sensitive to change or are you insensitive? his response, facebook believes they do consult their users,

enable you to see what this articles your friends are reading and also enables an application called spotify. >> now if you think something is interesting on your friends page, you don't have to like it, you have her variety of options signifying that you read or listened to it. but what if you don't like all the changes, including what is being made to the profile page which now has more video and photos? or the timeline which allows you to revisit years of posts. >> people spent a lot of time here and what facebook does every now and then again is go in and move furniture around and people come home and they trip over it and make it bad. >> some users want to know not just why there are so many changes but why they were not consulted about them ahead of time. >> and i asked mark about that in the news conference where they did not allow cameras. and i asked if he believed people were too sensitive to change or are you in sensitive? and his response was they are constantly getting feedback and that's why they make these changes. that and the fact that they have to keep up with competition.

facebook is getting into the music biz, announcing a hookup with spotify, very popular way of sharing music socially online. it makes sense of this marriage because now facebook is giving its 800 million users a chance to share and buy music online. it will be an interesting way to see if this catches on as much or even more as the itunes model. you'll be able to like a song, your friends will be able to see what you're listening to and both of you can buy it and enrich the artist if you want. lots going on. you showed a little bit of the sand berg skit. a lot of humor being infused but basically it's the company telling users thank you for making us huge and influential and profitable. we're not going to sit on our laurels. they are rolling out all sorts of features at this development conference. back to you guys. >> scott, thank you very much. as we mentioned, a big drop for the dow jones this morning. plus, interest rate levels we haven't seen since 1945. sue herrera joins us live from cnbc world headquarters now. good morning, sue. >> good morning, marla. it's been a very rough d

off new apps with hulu, netflix, directv, blockbuster and with music stream sites like rhapsody and spotifydded that facebook has been working with more than a dozen developers to create new music social apps for people so no what their friends are listening to. -- so they know what their fren are listening to. we learned today that facebook hit a new milestone last week. half a billion users in one day. >> whew. >> reporter: a lot of attention on facebook. can you imagine that? half billion users in a day. so we have our cbs 5 reporter who will give us more at 5:00 and 6:00. >> he is a big facebooker. wonder if he will have a madonna mic like mark zuckerberg. >> i wonder if he will have the same wardrobe on. >>> thank you, stephanie chuang. >>> raising a kid, well, it's getting more expensive. how expensive? the answer coming up next. >>> plus, bartenders and bar owners raising their glasses to a new state law that helped to change the taste of your next cocktail. >> we are still looking at hot temperatures around the bay area but the cooldown has begun. how much cooler dan get? we'll talk

international success today the cochairman of the skulk about foundation council craig barrett is my guest on spotify. spoke about innovation centers the favorite child of the russian president dmitri medvedev has been promoting the modernization of the country's economic and scientific future and grew to create an analogue of the silicon valley although the project is still largely on paper investment programs and research grants are being implemented already this year euclid technologies telecommunications energy efficiency and by medical technologist are in the spotlight and skulk about and many company managers believe the results of today's investment in some areas will soon be evident. oh mr perry thank you very much for being with us my pleasure to be with you first of all there are rumors that mr paul betts is from the russian division of kisko could replace viktor vaccine against the head of the foundation is there is there any ground for these rumors can you comment so i have no idea what you're talking about that idea out ok well we'll have some more rumors later but now i have a clear. ab

on the music side working with i heart radio and spotify.u're listening to a track on spotify and i'm on facebook, i can see what you're listening to or watching and we can join in. and we can join in and have that experience at the same time. >>> too much. >> they got them just the way they want them. now facebook is making changes. what's the reaction out there? >> mixed. i would say that largely, the reaction has been negative. people have been complaining. look, i this i a lot of people are getting cry baby syndrome for some reason when facebook lifts a finger, they just start crying about my profile. i do understand people don't like change. however, facebook's got 750 million people. they capital stay the same forever and continue to be relevant. they do have a competitor now in google plus, so now more than ever, they need to watch how they make cheese changes and make sure they don't upset people enough they don't want to try out a rival service. >> you said you're not noticing it yet but everybody should start noticing changes when?

sources say the site is partnering with spotify and rhapsody to allow users to share music from different services on the site. the day before yesterday, changes revved up with a new look to the fee. the users seeing larger pictures and gone are the separate tab for top news and most recent. new ticker at the top right of the page shows friends' activities on the site. right after they occur. they added subscribe button. to customize content in the news feed. not everyone likes it. some say it's fine as it was. some say you are trying to do too much on facebook. folks, what do you think? let us know by going to facebook.com/abc7news or a tweet at twitter. @abc7baybay area. we'll get reaction from you and have it in an hour. >> i'm a little behind this morning but i'll get on that. >> thank you. >>> 5:04. the two-year long saga of the american hikers jailed in iran for espionage comes to a close as they spent the first day of freedom reuniting with friends and family. josh fattal and shane bauer rushed in the arms of their loved ones yesterday in oman. the first taste of freedom for the 29

reporter: 11 years later, parker has returned to his music roots as one of the largest investors in spotifyndon-based music service he recently helped bring to the u.s. he has steered the company into an alliance with facebook where users can now listen and share music with their facebook friends in realtime. >> it's my belief that by bringing network effects and the power of social to the music business, we will create the dominant music platform in the world. >> reporter: a bold statement in a business category now dominated by apple. but parker's intuition has served him well. and though he says being rich isn't as glamorous as it seems, it certainly wasn't evident on this night. dan simon, cnn, san francisco. >>> a judge in the u.s. court has dismissed most of a $1 billion lawsuit against the owners of the new york mets baseball team. the case stems from the team owners alleged involvement in the bernie madoff ponzi scheme. the plaintiff in the case said that the mets owners were willfully blind to the fraud as they reaped $300 million from their investments with madoff. the mets owners

i mean spotify has been on service for a while. spotify is a very well received music service.haring music is a very big deal. apple tried to do it. all kinds of social networks for music. but the trick is that facebook has the network so what you want to do is go where the money is, as the james gang used to say. that's facebook. so i expect we'll see in the music space a lot more about sharing and a lot more providers. >> all right, john abell, thanks so much. >> my pleasure. >>> he's not afraid of controversy, and he's making a lot of it in a new tell-all book. coming up next, i'll speak with levi johnston about "deer in the headlights." what's he saying about life inside the palin home and life beyond it. it moves effortlessly, breathes easily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers. is to tak

music on its servers, but rather streaming the music to its 750 million users through services like spotify mog, rdo. these are streaming media site. now the question is -- will people have to pay money? some services are free, but some are not. so we're not sure what the payment structure would look like. the idea is that facebook wants to be on facebook all the time and maybe having streaming music as well will keep you there even longer. although as part of the digital diet, i would say sometimes you need to disconnect from facebook once in a while. >> you took the next words out of my mouth. according to your book, everything in moderation. thank you, great to see you. >> exactly. >> thanks. >> you bet, you, too. >>> coming up, this has been very kelch. despite the suicide of a cast member, the new season of "real housewives of beverly hills" will go on. disrespectful or just good business? we'll talk about it next. the bundler. let's say you need home and auto insurance. you give us your information once, online... [ whirring and beeping ] [ ding! ] and we give you a discount on both.

. >> parker's latest venture was called spotify.expects that that will create the biggest music platform in the world. >> i'll tell you what, nancy grace sure showed her stuff last night on "dancing with the stars." a.j. hammer, he knows what everybody is talking about. tell us what happened. >> well, kyra, who knew our own very own nancy grace had moves like that. we saw nancy and her partner doing the quick step. i have to say, they were right on. also a very nice compliment, i thought she was going to cry when it was said that her performance was refreshing and vif vash shous and alive. we caught up with her after the performance. while she was excited that she did so well, she also knew that she had to keep things in perspective. >> as happy as i am right now, i still remember standing on that bottom step last week with artets thinking that we were going to be the ones going home after one dance. >> i should also mention that nancy did have a little bit of a wardrobe malfunction during her lively dance. she tells us that nothing

ashton tweets a spotified music file to "don't believe the hype" as a way of saying, no, this is notself with her eyes closed and the caption that says "i see through you," which people felt was kind of odd, as well. we don't know quite what is going on. they seem to be admitting it, denying it. a weird situation. >> a lot of buzz that the marriage is over. allegedly this could be the end. >> nothing official, but a series of odd tweets. we don't know. >> what is the alleged other woman that ashton kutcher hooked up with? sarah leo, an actress. and as radar online previously reported, the 23-year-old hooked up with ashton at the hard rock hotel in san diego. she's gone into hiding. she did highlight a high-profile hollywood lawyer, keith davidson, who advised her to delete her social media accounts which she has apparently. >> interesting. and the tweet demi sent out, "when we are offended at any man's fault, turn to yourself and study your own failings. then you will forget your anger." yeah, something going on with that. >> wow. we'll be following this for sure. >> we'll see how it

he uses his twitter account, as he is wont to do he tweeted a link to his spotify account, playing the"don't believe the hype" and tweeted the old line, when you assume to know that which you know nothing of, you make a blank out of you and me. now, a few days earlier, demi quoted a greek philosopher on her twitter account writing, when we are offended at any man's fault, turn to yourself and study your own failings and then you will forget your anger. i don't know, is it all code, let the fans know it is just fine? are they buying time? hard to tell. we have reached out. we have no comment from them. and i'm loathe to be cynical. and i'm loathe to feed into this, keira. but somebody did point out to me, despite all the tweeting, there has been no denial. i hope everything is just fine. there you have t. >> it shall continue. thanks, aj. >>> if you want information on everything breaking in entertainment world and twitter, aj's got it every night, "showbiz tonight," 11 p.m. on hln. >>> well, bank of america going to charge a $5 monthly debit card fee. what do you think? could other ban

reporter: 11 years later, parker has returned to his music roots as one of the largest investors in spotifyhe u.s. he has steered the can company into an alliance with facebook, where users can now listen and share music with their facebook friends in realtime. >> it's my belief that by bringing network effects and the power of social to the music business, we will create the dominate music platform in the world. >> reporter: a bold statement in a business category now dominated by apple, but parker's intuition has served him well. and though he says being rich isn't as glamorous as it seems, it certainly wasn't evident on this night. dan simon, cnn, san francisco. >> all right, they're having a lot of fun there. >>> so a long island new york high school is at the center of a first-of-its-kind cheating scandal. students are accused of paying someone else to take their s.a.t.s. i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. i