tim westergren there. still with me, david kirkpatrick. d, what are your thoughts on what tim had to say there? it's interesting to see with spotify pushing towards this paid service, but he believes that you need to have a free service and that some users just won't ever change. david: he may be right about that. clearly there are three very strong players in this business with apple and spotify competing with pandora. pandora's brand is great. i think he was being really very unfair, though, when he said the other services are just a search box and then you're on your own with 30 million songs. spotify has done enormous work to make discovery better in spotify, as a devoted spotify user myself, i can say, nothing invested in it, just basically i love their product. it really has gotten easier. spotify has 40 million paying users. that's a lot. apple music nows that 15 million. that's pretty good. people thought apple would kill spotify right away. that has definitely not happened. spotify is holding its own. but apple is coming on strong

we will hear about it when we sit down with tim westergren tomorrow.rtual reality is all the rage of the tokyo game show. we will give you a sneak peek of the technology dominating this year's expo, next. this is bloomberg. ♪ emily: the annual tokyo game show has opened its doors, with virtual reality expected to dominate for a second year running. our asian tech reporter reports from the exhibition. >> vr is what's hot at this year's tokyo game show. right now, a taiwanese company is proving that vr does not have to be a solitary experience. the company makes vr for theme parks. you can generate it in your home with an oculus rift, but with a little bit of gear, you can take it to a whole new level. i don't think that will fit in my living room. behind the store we have a brand-new company, a new engine. it's a start up act by softbank. what's special about it is that this headset tracks the motion of your pupils. this helps reduce motion sickness, increases quality of the experience, and allows you to interact with the virtual world by looking at thi

joining us now on a cnbc exclusive is founder and ceo of pandora, tim westergren. od morning. >> so, tim, break down for us exactly what the difference is between then and now, as far as how these new licensing agreements position you, especially when it comes to profitabili profitability and your projections for the next three to five years. >> so, it's a world of difference for us. pandora has historically been a lean-back radio experience. we've been tremendously successful there, 80 million people using the service, very engaged, 24 hours and more per month per listener. and what the deals we've struck essentially allow us to do is substantially expand that product to address every consumer need. if you want leanback, you have that, if you want to lean forward, be more engaged, have more interactivity, up to a completely on-demand service to give you all of the feature sets any consumer wants. so, we'll be able to address the entire demand curve for listeners and bring to bear on that, you know, a great product and an enormous existing audience, about which we k

scarlet: all right, coming up -- matt: we will hear from pandora's ceo tim westergren in a new service a new service. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. scarlet: live from bloomberg world headquarters in new york, i am scarlet fu. matt: this is bloomberg markets. let's kick it off with the headlines. mark crumpton has more from the newsroom. mark c.: president obama says he thinks most people think he was born in the united dates, and he hopes that the election campaign focuses on something else. the remarks come after donald trump said today that mr. obama is a united states citizen. president obama: i'm shocked a question li