Transcripts For BLOOMBERG Best Of Bloomberg Technology 20240713

Annual ces event in las vegas. We hear from the heads of micron, qualcomm, Verizon Media, and queen vee. And Tesla Ceo Elon musk cuts a rug after delivering the first customer cars from the shanghai factory. Shares touch record highs. Our top story this week brought increased tensions between the u. S. And iran. Last friday, a military strike in Baghdad International airport took out one of irans top generals. Tehran responded by launching missiles at u. S. Interests in iraq. It all roiled the markets and created new fears of cyber warfare. CyberSecurity Firms like cloudflare were up this week as a result. I was joined by marcus salary the director of strategic threat tracei Security Firm dark and our cybersecurity reporter. I think there is a significant distinction between irans conventional battlefield capabilities and where they are on the cyber front. They are never going to go to totoe with the united states, at least in this realm, in a conventional battle. In the cyber realm, they have a greater chance of pushing back more dramatically and having a greater impact in the united states. So even though they have not gone that route in terms of immediate reprisal, it is not out of the question that, in the days, weeks, months to come, that we will see Something Else. Taylor marcus, your take on a potential cyberattack . Yeah kartikay, you make great point. They are moving into the cyberspace. This is the time for them to do it even more than they have. They have historically and beyond. Certainly, i was not expecting to see the immediate retribution. To see it as the immediate retribution. We saw that last night. But the cyberattacks and vulnerabilities are significant and we think about those. It expands to not only the government, but the Threat Landscape associated with the private industry and commercial companies. Taylor and i wonder why a physical attack first and then a cyber attack . Why is cyber attack seen as a secondary choice . Marcus i would say secondary or augmenting. I feel i, in order to get revenge, adequate avenge, revenge, it needed to be something in the physical space iran could point to as on par with what occurred. However, cyber disabling Critical Infrastructure as their first move would have been very escalatory. Cyber moving forward beyond the physical allows them to do it behind the scenes and include something they could attribute. For them to say it was something that could be conducted and take action that their name could be put to it. Taylor in the introduction, we were talking about fireeye and crowd strike as a few examples of companies that could benefit from this. In your reporting, is it too early to tell some of the winners and losers . Kartikay it is hard to say because you have crowd strike and fire eye as the two prominent, strictly cyber firms listed, but there are dozens of large and Small Companies that play in the space. Microsoft offers Cyber Security solutions and Onsite Services when there is a hack. Cisco does as well. There are local providers in states that are providing state governments and counties with cybersecurity protection. So i think you can distinctly state that crowd strike and fireeye will reap some of the benefits, but what share is hard to tell right now. Taylor marcus, i am curious to know, now that we have been talking about this for a few days, if that means we are any more prepared . Marcus i do not think the answer is yes. I think you are more on guard. I do not think you were prepared before or trying to repair now. And as you talk about the Cyber Security companies and what they are looking at and what they may be thinking about in terms of position, i think one area we are seeing a growth in this industry is the application of Artificial Intelligence to move faster into that security space more quickly. So you can move faster. We have a scarcity of cybersecurity skill sets. There are a number of individuals trying to figure out the right formula for bringing in new technologies, like Artificial Intelligence while , getting a more robust Security Team in place. Taylor marcus, some of your smart analysis has pointed to an increase in National Infrastructure and cyberphysical attacks. Walk me through both of those. Marcus theres a lot of vulnerability in the u. S. If they were going to strike inside the u. S. , i do not think it would be physical. It might be against Critical Infrastructure. I think, today, we move past that level of escalation, but it remains a vulnerability and something we have to be very mindful of. And i know that the u. S. Government is obviously very focused on it. But you the systems, this crackle infrastructure and Critical Infrastructure, now being more linked into the i. T. , and that makes that vulnerability increase. On the cyberphysical front, you are talking about moving away from going after data, grabbing at causingore machines to destroy themselves through a cyberattack. That is significant as we move further into that space, and it becomes mainstream as a viable escalation point. Taylor kartikay, i feel like i come to you every few days and ask how good are the iranian coders and how good are we at defending ourselves . Do we know how far i am asking terms of reparation are they getting ahead of us . Kartikay it is hard to say on a daytoday basis how they are progressing. But since stuxnet hit 10 years ago, we have seen irans capabilities mature aggressively. In 2012, they showed an attack on saudi aramco, and no one thought they would use that tech again. Then, four years later, they were able to tweak it and able to attack a broader swath of saudi assets. Again, we have seen smaller attacks that are more incrementally sophisticated in their technology and the way they are using it to indicate that their program is getting stronger. The trouble is that understanding exactly what they are capable of only occurs when they successfully infiltrate an adversary. And so i guess we will really know what they are capable of when we see what theyre capable of. Taylor that was Marcus Fowler of darktrace and bloombergs kartikay mehrotra. Coming up, ces off in las vegas kicked off in las vegas, and we talked to the biggest leaders in tech and media. Next, we hear from the ceo of micron as chipmakers have enjoyed a recent rally. If you like bloomberg news, check us out on the radio. Listen to us on bloomberg app, bloomberg. Com, and, in the u. S. , on siriusxm. This is bloomberg. Haver chip related stocks enjoyed a recent rally against the Broader Market amid growing optimism for the sector as 2020 takes hold. That optimism was apparent at ces in los angeles. I caught up with micron ceo Sanjay Mehrotra tuesday. Sanjay with respect to the chips, we have said that 2020 should be a good year for the industry. First quarter of calendar 2020 is typically a slower quarter in terms of demand. But in our industry, because of the capex reductions, the supply growth has been slower than the demand growth. In Market Applications such as 5g, ai, all of these are driving explosion in data. An microns products are used to store that data and process that data. So applications are growing. Micron is expanding its portfolio solutions. We are wellpositioned for 2020. We are excitedly looking forward to 2020. 2019, there was some excess supply in the industry. Yet micron produced excellent results. We are looking forward to 2020. With Strong Demand drivers as well as strong inclusion on the part of micron with technology and with respect to Product Portfolio and technology. Taylor analysts on the street, namely some from cowan, upgrading the stock, saying that as should become profitable new smartphone launches help tighten the supply up. Does not coincide with your thinking as you look to supply in 2020 . Sanjay yes. As we said, i think the supply growth is less than demand growth. And the demand continues to exceed, given the and Market Applications such as cloud, smartphones. Increasingly, autonomous features in driverless systems as well. All of these are driving growth and demand. Just look at 5g smartphones. They are actually driving higher than average capacity than 4g. There have been phones announced with dram content as high as 12 gigabytes. Even 300 5g phones have six gigabytes of dram gigabytes in them. Were before they averaged in six. 2020, a couple hundred million where before they averaged four. In 2020, a couple hundred million of 5g smartphones are expected to be sold. 5g is going to be a strong driver of dram content growth as well as flash content growth. Given the speed and connectivity it provides, an explosion of data and ai driven features as well as immersive experiences. That 5g will be able to give to you. They drive greater demand for data, which bodes well for microns business. In fact, we have exciting products that we have come over the years, in 2019, that we have announced that student very well for the smartphone applications. But let me tell you it is not just about smartphones. When you look at clouds and servers, they are requiring ai driven applications that are requiring more and more memory storage and Cloud Storage as well. Taylor that was micron ceo Sanjay Mehrotra. As for qualcomm, it unveiled the first chips and software for fully Autonomous Vehicles at ces on monday. Qualcomms president spoke with bloomberg about what he calls the companys natural extension into this space. Cristiano we are very excited to expand our automated offering. We believe that the cars are going to have to process so much data. It requires so much processing capabilities. You much, it is going to require a completely different equation about power. And coming from the cell phone industry, we actually have the ability to do chips. They are very efficient, from a power standpoint. You cannot run a data center out of the trunk of your car, and i think that is where the real opportunity is for qualcomm. We unveiled, today, our solutions from all the way from level one to level four , which is autonomy. More importantly, we believe the real commercial opportunity will be to add autonomy to every car as a convenient feature with a driver behind the wheel, like cruise control. I think that is the real opportunity qualcomm has to scale this. And we are also pleased to announce the expansion of our relationship with General Motors to include autonomy as well. Very happy about that. A significant milestone for the qualcomm automotive business here at ces. So when we talk about the prospects and competition in this space a couple months ago in november, intel talked about its acquisition of mobileye and how it was scaling up at a pace that it said is faster than competitors. Is the race here is it going to be about what you do at qualcomm internally, or do you look at m a and buying smaller players out there . Cristiano cristiano that is a great question. We have been building in our automotive business organically. And i think we got naturally to to become number one in telematics. Also connecting the cars to the other cars. Then we went to the digital cockpit transformation. In we and we became number one with 19 oems engaged. Autonomy is a natural extension of our computing capabilities becoming more powerful for Battery Powered devices, that is what you see in phones. We got into batteries for the car as well. We could see further acquisitions down the road but probably smaller. We feel pretty good about what we have done so far to be able to build our platform with organic efforts. Obviously, there are going to be a lot of flashy things thrown out at ces that will make you think that all of this will be available tomorrow. When it comes to johannes vehicles, though, we are not there yet. When is qualcomm betting we will actually get Autonomous Vehicles . 2020, 2022, 2030 event . Cristiano that is where the difference is. While we have a platform we can do full autonomy, we are focused on level two and three, which allow you to get scale and make this a commercial good proposition for us and our makers. In the platform we unveiled, we unveiled today, we expect to see cars on the road by 2023 with what we call level two or level three, which will have the full autonomous capabilities with the driver behind the wheel , much like a feature. That is where we think the scale will be and we think will become a commercial reality. Taylor that was qualcomm president cristiano amon. Coming up, the food Delivery Business is getting crowded, and grubhub may be looking to consolidate. Later, Tesla Ceo Elon musk has reason to celebrate as teslas production and delivery efforts in china get moving. This is bloomberg. Taylor its no news that microsoft competes with amazon in the Cloud Business, but a new target seems to be in retail customers. For details, i caught up with bloomberg and mizuho analysts. We are talking about this, microsoftll, because Ceo Satya Nadella is keynoting a big retail show. Retail is one of their most important sectors. Generally speaking, Web Services Amazon dominate the market, but none of the retailers want to work with amazon, which is one of their biggest competitors. You do not want to line amazons pockets with cloud revenue. Microsoft is working with a lot of these customers, like kroger and walgreens and now ikea, on a bunch of Different Things like store of the future concept. Ways to help these companies ecommerce sites better, monetize, sell more advertising. Things that will help these retailers do a better job of competing with amazons consumer business. And, at the same token, these relationships help microsofts Cloud Business compete better with amazons Cloud Business. Taylor as you take a look at microsoft in your coverage, where do you see them able to expand some of their cloud offerings to really go more toetotoe with amazon . Greg sure. I would say, first, to take a step back, amazon is going to get a lot larger over time. However, we have fairly consistently seen microsoft narrowed the gap in terms of size visavis aws. We expect that will continue. They are doing a better job getting more enterprise business. They recently won a 10 billion project with the dod over a ten year period. They have the retail aspect. I would say it was last year in 2019 when we first began to hear about microsoft pitching to customers that they are the more logical presence, or cloud provider, as it relates to those retail companies, where, again, they are not in the crosshairs, so to speak, as that might be the case with aws. So those would be areas where we are seeing microsoft gain momentum. Taylor that was bloombergs dina bass and mizuhos gregg moskowitz. The Food Delivery Service is a crowded one, and there were reports grubhub may be looking for a sale or acquisition. Analyst Gordon Haskett says the company is more likely to be an m a target. For more about what to expect in terms of consolidation, i spoke to tom white and a jefferies analyst. You have seen the consolidation space with doordash buying caviar. You are seeing other small, regional players get rolled up by others in the industry. It could go either way. Really, there has been a lot of pressure on the revenue. Margin has put a lot of focus on the market. Our shortterm thesis is that grubhub has been dislocated. They had great margins, but longterm, the economics can be restored. I think the ceo of grubhub has said that consumers should not get used to the prices that they are seeing right now because they are not sustainable. Like in any market, you see too many vendors chase the market. You are seeing that now. There is just way too much competition. That will consolidate and, potentially, economics will restore. There is a standalone case for grub, where they could actually do very well among three big players, which we think they would be the third biggest. There is another case where you could see, would amazon want to acquire this . Could uber or doordash look at a way to consolidate some of the assets together . Could another large food or Beverage Company look at this . I think there are a lot of options where shareholders could win at this level. We dont have a buy on the stock but do believe you could see a higher price. Taylor you mentioned uber eats. So let me come and pose this question to you. You have been covering uber and uber eats. Do you see potential for uber eats to come in here and take up grub . Tom yeah, i think i do. Echoing the comments of my colleague here, i think this is a space that is ripe for consolidation. You have a lot of businesses that have very similar, if not identical, business models. They are burning cash, chasing growth. On paper, consolidation seems to make a lot of sense. For uber, it makes a ton of sense to explore this. I think there are reasonable questions as to whether or not they could get a deal done. I think uber has a target on their back, if you will, in the eyes of regulators broadly. That is an open question. With these sorts of deals, when antitrust folks look at it, it kind of depends on how they define the market. Are they going to define it narrowly as just Online Food Delivery or are they going to look more broadly at food delivery in general, including offline and sort of restaurant volume overall . So there are some questions there. Point, oneo brents thing that could also go against the deal in general is it could likely result in prices for consumers going up. That is not something regulators generally like to see when they are going to approve a largescale merger. I think it is inevitable, eventually, that that would happen, but a deal in general would probably accelerate that timeline. Taylor that was tom white of d. A. Davidson and jefferies analyst brent thill. Alphabet was upgraded to a buy from hold. Analyst Michael Levine wrote that, after a Critical Foundation year in 2019, the narrative continues to improve in 2020 and beyond. For more discussion, i spoke to him monday. Michael i think one of the things that was most compelling to us was both the change in basicallyth sundar stepping in as ceo and chairman. But something i think investors may have missed, his compensation agreement was filed with the fcc on december 20. On what stock with me was basically he was compensated on the percentage differential that google stock does relative to the s p 100. 45 million has trench on plan for Stock Performance in 2021. A second 45 million for 2022. So it is pretty refreshing and encouraging to see alignment between management and Stock Performance. From a company that has just historically taken a very different approach to working with the street. Taylor that was Michael Levine of pivotal research. Keeps gettingle records and reaches a new milestone in china. We will have the details next. Bloomberg technology are livestreaming on twitter. Be sure to check us out at technology, and follow our global breaking news network on twitter. This is bloomberg. Taylor welcome back to the best of Bloomberg Technology. Im taylor riggs. Apple enjoyed a fresh price target was from jefferies this week to 350 a share. Looking at the past year, shares continued to retire, and this week hit an intraday record. Analyst carl mcnealy said look at foot traffic at u. S. Apple stores as well as globally showed apple was set for a strong finish to 2019 when a report earnings. Sales in china were also up as Government Data indicates it grew to 18 yearoveryear. Alistair barr filled me in thursday. Certainly, in china, that number is a surprise. There is a broad push in china to focus on huawei and have consumers buy huawei funds instead of iphones. And that was the concern for a lot of last year. And some of the trade tension has come down. In recent months. So maybe that has something to do with it. But i think, more to the point, is it a viselike the iphone 11 is a little bit cheaper, that battery life is a very, very long. And the photos you can take are a lot better than the previous version. So when you put all those things together and then combine it with a large backlog of older iphones, like the iphone 6 and iphone 6s, which were really huge hits, those devices are three, four, five years old, even, there comes a point where millions of people are going to upgrade. Are they going to upgrade to Something Else . Theyre probably going to upgraded to a new iphone. Taylor one of the other things that surprised us was the fact that the iphone 5g phones are not out yet. What is driving the big push we saw in december . Alistair i think partly it is this upgrade wave. Lets say, even if they did not produce the iphone 11 and just had the same new phone from last year, if you have an iphone 6s, theh is four years old and battery is running down, you really have to upgrade at some point. And i think jumping to an android phone, nowadays, is becoming a bigger and bigger step for people these days, because a lot of your digital life is run through these devices. There are other ways that apple puts people into the ecosystem. So giving that up and going somewhere else is a huge step, people are not willing to do that. Taylor i want to touch on a company you mentioned earlier, which is huawei. Frankly, i am surprised we have not seen more nationalism in china about huawei and pushing away apple. Alistair yeah, i think that is very true. Part of it is the ecosystem issue. If you already have a huawei phone, you are used to the android operating system. And you probably will stick to that. And i think apple, now, the challenge really is kind of a lot lower than two years ago. Even two years ago, investors were expecting the company to keep growing iphone sales and then unit sales. Then after that real shock last year, that really reset the bar. And now, if apple gets 5 growth a year and iphone unit sales, going into the next few years, investors will be completely over the moon, because there are other things that are coming after the growth. Taylor that was bloombergs alistair barr. Tesla ceo elon musk was in china and had something to celebrate. Musk was at a tesla plant outside shanghai tuesday. The company handed over the First Chinese made model rhenium sedan to the public. But it is a different model ev that has musk excited. Elon actually, probably, even more people prefer an suv than a sedan. And i think, ultimately, model y will have more demand than probably all of the other cars of tesla combined. Taylor for more, i spoke with bloombergs dana hull, who covers tesla. Dana teslas only plant in china without agv. It sets it apart from other models. Its a whollyowned tesla facility. They get a lot of funding from chinese banks. And the speed of construction really astounded people. A year ago, it was like a muddy field, and now they are having a big party. A lot of Chinese Government officials were there. Musk was dancing. Just celebrating the handing over the of the first cars. Taylor take a look at a chart im showing inside my terminal. China is the largest market for evs. They have some of the most demand. And this really has been the thesis onthe bear the stock. Can they actually capture that Chinese Market . Is this the first step in what could really set tesla apart . Dana yeah. In the middle of this trade war, having local production helps lower the cost. Right now, tesla is assembling the cars in china. As more and more of the supply chain is localized, full on production will happen, and then they will be able to lower the cost for consumers even more. Right now, tesla costs are still high compared to locally made cars, but they will be able to lower the price. That will give them more cost parity. Taylor and then in the soundbite we heard in the beginning, he was talking about how the model y demand will eclipse all the other models combined. When do we expect the model y crossover . Dana he has said that before on the earnings call. What was news to me is that they are going to begin model y production in shanghai as well. And they have not begun model y production here in fremont yet. It sounds like they will launch on two continents in parallel. And the y is the lower cost suv. Tesla had a lot of challenges producing the model x. I think they have learned a lot of lessons. I think most people in the world want suvs as opposed to sedans. Taylor the biggest issue, as we remember was the production. , how did they avoid that in china . It appeared to be a seamless rollout. Dana its hard to say. We have not heard much from the company about what they did. But i think tesla has sort of reinvented the wheel many times. They learned, painfully often, the challenges of manufacturing. And then they kind of power their way through them. I think that, whatever they learned from getting the model 3 up and running in fremont, they took with them to china and then improved on it further. Taylor i am asking a bit of a for a question here. I was speaking with the micron ceo at the top of the hour. Micron went into china and that accused the chinese of stealing their technology and pushing them out. Is there a similar risk for china . Dana i guess that is always a risk. I would be surprised if tesla went into china not being aware of those risks. I think that the ip they have is pretty solid. But they have also open sourced a lot of their patents, and it would be hard for someone to just copy them outright. Taylor that was bloombergs dana hull. Coming up we head back to ces in , las vegas. Highlights from our conversation with Ceo Meg Whitman and founder Jeffrey Katzenberg on their new venture in the crowded streaming space. And later, we spoke to the biggest moguls of this week at ces. We will get insights from the media link founder and ceo on the latest trends in streaming ads and brands. This is bloomberg. Taylor back to ces in las vegas, where we got an ear full from content creators and brand advisors on content and streaming. First up, quibis meg whitman and Jeffrey Katzenberg. We talked with the pair on how mobile content can shape the future. Meg what we talked about today was a new technology platform, which was part of our differentiation versus other services that will allow mobile viewing to be extraordinary and enable creators to tell stories in a whole new way for the mobile phone. Just a couple of other things. We think that people will be on go,i during the day, on the where they had the chance to watch very fantastic hollywood Quality Content but in those short fights. As i said, we introduced a Technology Today that is fullscreen video, landscape portrait, that allows you to see content in ways never before. And you just closed a second round of funding. 400 million that will carry you through the spring launch in april and beyond. I want to get more on the details here, because 175 new, original shows, 86 episodes of quick bite content this is a crowded field. Who exactly are you targeting here with this content, and how do you convince them to play 4. 99, on top of their netflix subscription, hbo go, and disney . Jeffrey our content is quite unique, very differentiated from anything anybody is making today. As meg said, we are relying on this Incredible Technology that is really quite revolutionary in terms of the quality of what we can deliver. And yes, there is a tremendous volume of content. Because people want quality but they also want quantity. We will publish three hours of original content every single day. On quibi. That is 35 more than a broadcast network, shows in primetime. Were not competing with the television set. All the things going on today on streaming are all focused on what people are doing in front of the tv. Less than 10 of the viewing of netflix, hbo, disney , any of them, are actually on a telephone. We are only on a telephone, so we are highly differentiated. And our use case is quite different. Megor that was quibi ceo whitman and founder Jeffrey Katzenberg. Also at ces, verizon made the rounds, discussing its partnership with disney . Ed ludlow caught up with verizons ceo wednesday. If you think about our business on Verizon Media, if you Start Talking about is, think about the 900 million users globally. We are also at the top of the forl four funnel disney . There is a lot they are doing to attract new customers. Two, part of our media platform is a streaming service. Disney uses that to leverage their streaming content. As they grow without, we also grow without. Ed who else could you partnership with . The reality is theres only a limited number of set use cases. You want to be careful with consumers and work with great, iconic brands disney is a great brand like verizon. That Partnership Works well, so i think we will go use case by use case. I do not want to name names, but there will be limited partners who benefit. Apple music did that. But verizon and disney is the next big thing happening. How do you read disneys success . What do you see them achieving in the next 12 months, the next three years . Guru i think, at the top level, getting more customers signed up. Retention of customers really coming in. And are you keeping them for longerterm . Vestberg, is, hans laser focused on 5g. The company, more broadly, is focused on 5g. What opportunity does 5g bring Verizon Media . Guru one of the biggest use cases when we think about 5g is the media use case. That is the most tangible for consumers and advertisers. You have seen ar in the 4g world. It is nonmainstream. I think in the 5g world, it will , become mainstream. Think about xr News Platform. We launched our News Platform in collaboration with the ap. Now there is reuters. They are really building a platform where news is experiential. The reason you cant do it at scale is because you dont have the been with latency, the speed, you need to do that. 5g at scale helps us to do that. So i think in our business, the ar, let that be on the content experience side. Oer the consumer side. You go to a much bigger scale. Sports is another use case. Nflave been working with and nba to really get to where fan base and fandom, in terms of activity attractivity, go to the next level. Ed i want to talk about sports. Yahoo sports is popular. You also have sports book. Talk to me about those two businesses and what the future of those opportunities are. Because that is an exciting area. Guru commerce is where sports fits into in terms of completing the lifecycle, the transaction cycle. If you think about the Sports Betting world the hardest part , is to get the consumers. Which is the top of the funnel. What yahoo has today, our ecosystem as we said, we are 900 million globally. Sports the u. S. , we are a leading player. You think about fantasy sports. A titanready have Consumer Base who want to do this. So for us, it was a natural extension to close the loop for Sports Betting. We are clear we want to do it. We chose the best partner to underline it, mgm, and that launch in new jersey is our first legalized adding betting state. Ed what comes next . Guru there are at least five states there are many states that are legalized, but the product platforms are not set yet, so i hope we have five plus more states. Taylor that was Verizon Media ceo guru gowrappan speaking with ed ludlow. Without a doubt, many media and mobile vendors say 2020 is the year of 5g. Among those is medialink Founder Michael kassan, who joined me wednesday. Michael as we said last year, i think it will come to fruition sooner than we think. The combination of 5g and just about everything that it impacts will have major consequence, and usually that will be positive, from everything i know. But one area i was interested in 5g having an impact in was content consumption. And i was listening to the news the other day here at ces talking about that other story that continues to be important, which is autonomous driving. And we do believe that autonomous driving and 5g will be part of continuing to fuel the pump in content. If you think about the people now commuting, and, all of a sudden, they will not be literally behind the wheel but have that same amount of time to get from home to work, there will be more time for content consumption. So 5g and autonomous driving are one of the interesting combinations i think you will see happen in the short run. Taylor it is interesting to talk about that content and the consumption. We have had a lot of new entrants into the streaming wars in 2019 and continue to see so in 2020 with quibi and disney. What have those conversations been like as you see more competition in the streaming space . Michael i think, from our perspective, we look at it through two lenses. Number one, if you are marketing those services if you are orney or hbo or quibi peacock or amazon, etc. , you have to think of being a performance marketer rather than a brand marketer, because you are in the business of acquiring subscribers and certainly hoping that the subscribers do not turn. From a marketing perspective, it is a different marketing muscle. From a consumer perspective, it is going to be some binary choices. The skinnyked about bundle from a cable context. I think we are seeing a rebound in that will occur with the streaming services. Because consumers, it seems to be from the research seem to be , around the range of four to five subscriptions that consumers will be subscribing to. That will create binary choices. Taylor that was michael kassan, founder, chairman, and ceo of medialink. If 2019 was the year of tech in ceo departures what will 2020 , hold . We talked diversity in the Silicon Valley boardroom. Thats next. This is bloomberg. Taylor if 2019 was known as the year of tech ceo shakeups, what will 2020 hold . Some of those who left the helm included alphabet, ebay, and expedia. And then come of course, there was adam neumann, who abandoned ship when weworks ipo collapsed. But, like with everything, lots of these have opportunities. We have more women . This ceo of board span joined me monday. There was an awful lot. In fact, it surprised me when i looked at the statistics. There were 1500 ceos that turned over in the 19 which, by the way, was a record year. The comes from a few Different Things to one of those is we are looking at 2020 as the irrevocability. Certainly, that is what we saw from ceos in when he 19. If you think about it, the bottom line, what are ceos really expected to deliver . Two things. One is to make investors money. And the other is they cannot screw up while doing that. If you look at all of that turnover, it often came because i very ceos were not making that investors were expecting or they were making awful mistakes along the way. Taylor and in all of your years of looking at this, did 2019 feel cyclical or is ithere a structural shift where people are saying we will finally hold you accountable . Abby i think it is more of the latter, and i do think that ship has sailed. Accountability comes from a few different areas. The business roundtable, as you recall, came out with a really big statement at the end of the year. We are certainly seeing how investors are behaving and how what we would call activists versus pacifists have blended together, and more demands from investors as well. Taylor when we look to 2020 you talked about Corporate Governance and accountability. What are the main things you are keeping an eye on for this year . Abby for 2020, the watchword for boards will be accountability. We are seeing hints of that already. For example, what is going on with boeings board. And of course the massive reworking of bed, bath beyond earlier this year. I think investors and regulators and employees nobody is off the hook anymore. Lookr for you, when you at after a ceo steps down and there is a big shakeup, what do you see with the incoming executives . Is there enough of a Diverse Group of which to choose . Abby the thing to remember about ceo turnover is that there are really two ways to address that. And it is all in the grand category of things called succession planning. If a board has had the opportunity to be thoughtful and plan this out, and it is usually a multiyear process, you will get smooth transition, even in the face of tragedy. Oracle is a great case study. With the untimely loss of mark hurd, nonetheless, they were as stable as they could be. Prepped and ready to go. Even in the case of alphabet, you mentioned earlier when you had an earlier guest talking to you about alphabet, i do not think that was a big surprise. Sundar was in the wings, waiting to step in the role of ceo. And adam neumann, your other example, took everybody by surprise, his whole board, staffing, and adam himself. Taylor i want to take a look at a chart we are showing inside the terminal. I cannot put it out on social because we do not actually have a terminal number for it. But we have created a customized index, this watchlist showing women on the board. The most is oracle at four. , 3, 2. Down the list it seems good, not great. Have we done enough . Abby there is clearly more work to do. I think what we are showing here are some of the larger companies. So on the Smaller Company side, you do have some examples some surprised i am not looking at the chart right now, but im surprised hp did not show up because i like to show them as a good example. But certainly, elf beauty, just across the bay in oakland. We have got stitch fix, surveymonkey they have good examples of diversity on the ir boards. Taylor and you talked about and mentioned those are californiabased companies. My smart producer was pointing out that, in california, there is a new law where if you are a publicly traded company, you need one female on the board. I think if we needed a law, it means we were not doing enough. What did you make of that . Sb826, theis California Law you are referring to. I am a capitalist at heart, so in the perfect world, we would have gotten diverse boards through the right reasons. But we did not. Thats where the law had to come in. Sure enough, it had the desired effect. Now there are still 40 companies, approximately, that have yet to comply. That is up to them. We will see what happens, it is up to the regulators. But no question, we cut the number of boards who have no women in california by two thirds. It was close to 120 when this law was put into effect over a year ago. So we have deftly made some progress. Taylor that was boardspan ceo abby adlerman. And that is it for this edition of the best of Bloomberg Technology. We bring you all the best in tech each day. Tune in each day at 5 00 new p. M. York, 2 00 p. M. San francisco. And Bloomberg Technology is livestreaming on twitter. Hnology andt at tec follow our global breaking news network. This is bloomberg. Haslinda hello. I am Haslinda Amin in singapore. If a picture paints 1000 words, then Steve Mccurrys work is limitless. He is the man who shot the afghan girl, a worldfamous photographer who focuses on conflict and culture. The master photographer Steve Mccurry is todays high flyer. Born in philadelphia, a child of the 1950s, steves life through the lens has captured some of