and if you go on facebook and your friend spotify, you can see what your friends are listening to.'s interesting experiences you can derive from that. ultimately we think netflix wants to do that with video and could be the first potential we'll call it social video company. >> quickly, last year the company got a lot of heat in the media. lost a lot of subscribers because of the price increase and the plan spin-off. it killed the spin-off. but any indication the price increased has worked its way through and that subscriber losses are over? >> the company is guiding to 7 million net ads for the year would basically put it back on track from that ugly episode last year. right now the street doesn't believe it. if you take out the international losses, the stock is trading at about 11 or 12 times earnings. and it's a growing business. so right now the street doesn't believe the 7 million guidance as reflected in that multiple. and that's why we're recommending the stock. ultimately even if the number is six, six and a half tharks is too cheap for this type of growth. >> jason, thank

inking a deal with sp spotify.he deal expands spotify's reach to estimated 700 million people who visit yahoo! each month. spotify has 10 million active listeners, and 3 million pay $10 a month for premium service. yahoo! slightly lower this morning. >> google's new android software is called jelly bean? >> apparently. sweet. >> you could do sherbert dip. a software called sherbert dip. you like that. >> is that a product? >> right. we grew up on it. that's why we have such bad teeth in this country. that's one of the reasons. pong, you remember that? you're far too young. ed, you'll remember this. ready for a game of pong? for those under the age of 35, pong was a video game from the '70s that consumed the attention of many to a teenager. the maker of pong, atari, is celebrating its 40th birthday today. oh, look. we all remember that. the company was founded in california in 1972. atari made other iconic ahead of their times games. we just saw this. asteroid, pacman, centpede. >> i played a lot of pacman growing u

. >>> the music subscription company spotify is joining another one in offering a free radio service for some mobile devices. till now the company charged $10 a month for its app. it stipes out ads and enables users to -- [indiscernible] >>> when we return in two minutes, we'll tell you how the army is using a change to inspire soldiers who are returning from war. >> howard will be back with your hot weather first. you're watching 9news now. >>> good morning. welcome back to 9news now. 4:44. halfway through the week. it's wednesday. howard is here and boy, it's going to be a scorcher. >> the first part was the easy part of the week. >> we even had a little rain. we won't see rain and we won't see mild temperatures. >> a stray thunderstorm is all we'll see the next couple of afternoons. friday a better chance we'll see thunderstorms. but the heat, the humidity, the code orange air quality, those will be the weather headlines for the next couple of days. we start with the heat advisory. that begins at noon till 10:00 for just about everybody except out in the mountains and over on the

hello again and welcome to spotify i'll do an album today my guest on the show is that you get put on. the looks of issues that are dividing us i mean the people living in russia and people who know us and whenever we watch television when we watch politicians speak on television we see for answers to questions like for example is there still a compromise possible around the a.b.m. miss south shields that the beautiful images are building on the continent from for example what's the future of the you raise new nuclear program and all that fuss that's around the issue in the one another job and issues of course syria and is there a possibility that russia and the west act together somehow to cope with the crisis . to also do this and other questions my guest today is he going to give on the former russian foreign minister and he's also the president of the russian international affairs council a man who's very active today in building informal bridges between russian and foreign experts and the next. leader ivanov to prominent russian diplomat since joining the foreign ministry in the

now i can pay spotify $9 a month and listen to thousands and thousands of classical albums. i can discover anything i want. there's no friction between me and discovering and sampling. so that leads to greater enjoyment of music. >> so access is what you're saying, access is much more valuable than ownership. >> i think we're going through a generational shift between a generation that values ownership, to a generation that values access. and i think that we're living in between both worlds right now. >> all of this access is enabled through the cloud and broadband and wireless. >> i think one of the most important things to rio's comment in terms of access, this is massive amounts of data that we're talking about, in rio's example. and the importance of simplicity for consumers, for discovery, for navigation, for prioritization, for research, is what's really important here. or consumers will get overwhelmed. so that's one of the principles that we have in view-dini is we want simplicity. because we want customers to have an outstanding experience, and we want to make sure

. -- rhapsody will be replaced with spotify.g name is moving to san francisco's market area. mayor ed lee announced that the laboratories will be moving its headquarters into the market. the company is best known for high-quality audio and of imaging solutions. they have moved to the area along with it twitter and zoos. many commuters lined up for free bus service when ac transit had about clipper card. the clipper card are good for unlimited travel on ac transit. from today-july 3rd. they're hoping that after trying the service the agency hopes the riders will come back. >>gary: , now we will update you on the giants and the dodgers. if you are a giants fan, get on the computer and help the club. we will explain. the nba's coming down hard on one of its big-name players and chris brown vs. drake, detail on that later the broadcast. carthag >>pam: and coming up at 8:30 p.m., the san francisco school board is poised to make some drastic cuts in order to deal with a looming budget deficit. the largest u.s. city is on the brink of

and now, on to yahoo reaching a deal with spotify. under the agreement will have access to yahoo nearly 700 million unique users. >> facebook had has replaced e mail addresses of users that they choose to display on profile page was ones ending in @ facebook.com. it will put that e mail into et mess dwrajs section of a profile. -- messages section of a profile. if you don't want to display it on the profile you can switch back to the original address by changing your profile settings. >> and finally, nearly half of all parents believe their teens tell them everything they do online. but 70% say they hide their behavior from their parents. and that is according to a new survey by mcaphee. so how do they fool parents? mostly by clearing browser histories, deleting instant messages and by using a kpurter or mobile device that parents don't check. kids these days. in san francisco, i'm emily chang, larry, back to you. >> my kids wou never do anything like that. and would they? girls? >> and it's warming up out there a little bit. >> spenc

. >>> yahoo is getting rid of its music service and replacing it with a swedish service called spotifythe change is expected to start tomorrow. rapsody has been part of yahoo since 2008. >>> dolby laboratory says it plans to buy a building on market street for $110 million. that's not far from the new twitter headquarters at ninth and market street. dolby will consolidate most of its three san francisco offices at this new headquarters. >>> tonight in stockton the city council appears ready to make a historic decision. that city is facing an anticipated $20 million budget deficit and could soon become the largest u.s. city to file for bankruptcy protection. malory hall reports. >> this is an important meeting in the history of stockton, a lot of things will be decided tonight reported on tonight. >> reporter: as residents pack city hall, council members are considered a plan that will drive the city through chapter nine bankruptcy. the city manager may file as early as tuesday morning. >> we appointed you and we put our faith on you, the world is watching thank god so they can see we'r

. >>> yahoo is getting rid of its music service and replacing it with a swedish service called spotifythe change is expected to start tomorrow. rapsody has been part of yahoo since 2008. >>> dolby laboratory says it plans to buy a building on market street for $110 million. that's not far from the new twitter headquarters at ninth and market street. dolby will consolidate most of its three san francisco offices at this new headquarters. >>> tonight in stockton the city council appears ready to make a historic decision. that city is facing an anticipated $20 million budget deficit and could soon become the largest u.s. city to file for bankruptcy protection. malory hall reports. >> this is an important meeting in the history of stockton, a lot of things will be decided tonight reported on tonight. >> reporter: as residents pack city hall, council members are considered a plan that will drive the city through chapter nine bankruptcy. the city manager may file as early as tuesday morning. >> we appointed you and we put our faith on you, the world is watching thank god so they can see we'r

they've been behind some of the most influential digital companies ever -- spotify, plaxo, path and ace called airtime. give it up for sean parker and shawn fanning, everybody! [cheers and applause ] ♪ ♪ >> jimmy: that's what i'm talking about. hey, guys. welcomto the show. i've seen you before, sean parker, but both of you guys together -- you guys traded napster. that was a giant, giant thing. and how old were you guys when you created that? >> well, i was 18. >> we were basically children. >> yeah. >> jimmy: basically -- yeah, 18 years old. and how did you meet? how did you just get together? you didn't live by each other, right? >> we actually met on the internet. [ light laughter ] as creepy and weird as that may sound. >> jimmy: no -- what do you mean? so, you met -- what do you mean? like on chat rooms and stuff? >> yeah, there was a time when being on a chat room wasn't about asl and trying to, you know, find a date. we were actually -- we met through internet security which is -- one way of saying hacking. [ laughter ] >> jimmy: that's one way of saying it. i guess so, yeah.

i've only made one large investment at founders fund, which was spotify.e i did the spotify investment, you know, i was told the valuation was incredibly extravagant, there was no way the company would ever work, the label deals weren't going to get done and i invested because of the team, because i felt like i could actually help and i believe that ultimately, you know, the label deals were not some x factor unknown, that they were manageable and so if i worked closely with the company that we could actually, you know, get those deals done while preserving the purity of the product vision. and we, you know, that worked out really well. i mean, the company is now in private markets, trading much, much higher than the price that we invested in. >> we're going to have more of that interview with sean parker in the next who have hour. of course, lots of big issues around corporate governance and democratization of the board these days. we'll have more from our guest host, blackrock chairman and ceo. larry, what do you think of all of this? in silicon valley,

they have 50 million to spotify's 10 million.able to listen to music on their iphones and smart phones and this will move spotify in that direction. >> apple shares have moved in the last month. less familiar are the foreign markets, could we get a big boat for emerging markets? we're trading the globe with tim seymour. we saw this show up last time around with the iphone sales in china. >> yeah, iphone has certainly been hampered by their network issues. they are really the player that needs to adopt the iphone, and you said, have the structure to give apple the boost. and what credit swiss is saying, they call it emerging aing, there is probably $20 billion in sales from 2011 to 2015. you will have effectively another 111 billion people that go into this emerging class profile that is exactly the profile that apple is appealing to. so if you think about their growth right now, they're roughly about 28% of their sales. that puts them in the bottom third of other major multinationals from the component their getting from the e.m.

is ditching r and teaming up with spotify. in the past users had to navigate away from the page. tough life. andrew? >> we got a couple of other stories on our radar this morning. the nation's biggest banks, yep, putting their finishing touches on the so-called living wills. government mandated contingency plans are due no later than july 1st under provisions of dodd/frank. it must show how to close a bank safely. the big question with the public goal of stopping too big to fail bailouts. jpmorgan, bank of america, citibank, goldman sachs are among those submitting the first scene air ye scenarios. and the s.e.c. could file an enforcement action against hedge fund manager phillip falcon this week. they have been investigating a number of issues on falcone including a $100 million loan he took from the hedge fund to pay his own taxes. trading in hedge funds and bonds in max holdings. northern california city of stockton is set to become the largest u.s. city to declare bankruptcy. filing could come as early as today. they have $700 million in outstanding debt. last year they appro

. >> we had sean parker on last week, behind napster and now has a new product and spotify.hat is economical, that is going to work? is there something on the horizon? >> i'm not sure about any model that i would endorse. i like the idea of subscription, but i'm a purist. i know what it meant for me to put on headphones as a boy and hold that album sleeve. i was really dead set against the artwork getting to be this big on my cd and now gone. album and lyrics and the imagination really played a big part. >> what will you listen to as you're leaving here, just all about jon bon jovi? >> no. >> are there bands you listen to? >> i listen to new and old. >> who do you like that's new? >> i don't know, there are new bands that i do like a lot and there's unsigned bands and ways for kids to go about getting record deals today and breaking the model that i came up in 30 years ago. there are ways through youtube and through independent releases and there are ways for the next bob dylan to be found. >> are you treading on country at all in the new album? >> a couple songs could cross