Theaters and live sports shut down. At eng me, analyst marketer. The big headline is that disney is planning to reopen shanghai disneyland on may 11. That is certainly a big symbolic step. What is your headline take away from these results . Disney is willing to open up these parks early in order to preserve revenue. Shanghai disneyland is a relatively small part of their overall parks business. The park in the u. S. The parks in the u. S. Are likely to remain closed or seeing significantly diminished revenue for the foreseeable future. Emily lets talk about the other parts of the results. You have movies, espn, disney plus, which is really the bright spot. The said at the end of quarter, they had 33. 5 million subscribers. But they released an updated number, that they surpassed 50 million subscribers. Walk us throughout much disney plus can buoy them through this time. Eric looking back to when they announced disney plus in 2019, they gave a guidance of about 60 million to 90 Million Worldwide subscribers by 2024. Disney plus does not exist in a vacuum a lot of the growth or a lot of the reason why they are going direct to consumer with disney plus is to help supercharge other parts of their business, namely their parks and their movies business. So, while the growth is pretty impressive, it is bittersweet. How moviek about theaters remaining closed drags on the bottom line. We saw the film studio, still 2, a new staren wars movie. That is not going to happen for the current quarter. It is important to realize, when we look at the calendar year 2020 results of the impacts in the u. S. Did not hit until the end of march. When we look toward the rest of 2021, movies into and theme parks are likely to remain closed. Disney is dependent on these large tentpole movies. They have done fantastic at the box office the last couple of years. But they will not be able to expect the same sort of revenue from these movies when a significant amount of movies are closed or have drastically limited capacities. Emily just before the covid19 crisis came to the United States, you had disney announcing that bob iger was stepping down and bob chapek was stepping into the ceo role. Chapeks, huge job on plate. Iger is still there and seems to be still involved. Do in as a new ceo crisis like this, especially given a really uncertain year ahead. Eric it is certainly trial by fire for bob chapek, but it is important to remember that bob iger is still in the fold. People really still associate and love their various hits such as star wars, marvel, various disney properties, pixar. Recedes the pandemic and we see either a vaccine of some sort, they are in a really good position to rebound, in parks or across various media businesses. Emily the big question is when the pandemic recedes. Thank you very much. Appreciate it. Coming up, we will be talking about xbox. The pandemic not stopping Microsoft Xbox from releasing new games and consoles to keep people entertained. We will hear from the head of xbox, bill spencer. This is bloomberg. Xbox is movingt on to what will be probably its biggest launch year yet for products and services. I spoke to microsofts head of microsofts bill spencer about the coming lineup which he says is on track for the next year and how much activity they expect to see. Bill we are seeing engagement with games, services, people sheltering in place, work from home, school at home. Think for a really exciting year for us. Do you balance showcasing only products and games and also striking the right tone given that we are in the middle of a pandemic and a massive crisis. Bill for us, it is more that we stay true to our values as a team at a company. We think people are doing it through gaming today, the needs that they have. People are physically distance from their friends and families. Our Gaming Services and content can help people stay connected. Seen 22 million friends connections created on xbox live. Fact that our services can help bring people together in a time of need really drives the team. Obviously, we are seeing rising unemployment. What does that mean for your business or Business Model . Bill clearly, gaming is a discretionary activity. I think it is very important at a time of need that families are taking care of the most important for them. Gaming tends to be a really important value. The, 2009, what happened in gaming business. Software and services, aiming content tends to do ok. Families are looking at costeffective ways to pass the time together, gaming is one of those. Hardware could be impacted. Hardware for us is a longterm endeavor. Theping xbox consoles, series x this year, we are excited about it. That is a console that will be four years. Families will make the decision that they need to go make. We will have thousands of games for people to play. They will make the decision, what is right for them. Emily microsoft employees are sheltering in place and you are facing different game studios facing consequences. Will halo, your most popular ready . Be bill safety and security of the team, nothing is more important. Hundreds of people working on games together for multiple complicated mix of technology and art coming together. Halo is an important game for us. Halo infinite, we expect that to be here this year. We are taking it day by day. For me, it is my ninth week working from home. It is kind of hard to believe. Our teams have kind of hit a rhythm. Certain things are even a little bit easier. Other things are more difficult. We have team members who have kids at home. It is being therefore our teams when they are making the balanced life tradeoffs they need to make. I feel good about game production. We feel really good about the path we are on. Videogames have been a lifeline for so many people in general, but for kids at this time my kids just started playing minecraft. I feel good as a parent about the time spent on their, making sure that productive time , making sure that he is learning good things about social norms rather than the opposite . Bill it is such a great and important topic. Minecraft is one of our games. What it means to be online, what it means to interact with other people online, what are the norms and etiquette i should have . It is something that we focus a ton on. Whatarents come understand your kids are playing. Parental controls so you understand, you can make sure being a participant is something that is very important. A couple of things we did this year, but one of them is xbox game pass, a subscription that came out that gives them an unlimited amount of games to play for a set amount. It has created the opportunity for families to play games together. I would definitely recommend that parents sit down, put a controller in their hand, and figure out what this gaming thing is about. Definitely be aware of the content and what is there. There are services out there that can give you access to a lot of games to go try with your family. Ofly bill spencer, head Microsoft Xbox. Airbnb has announced it is cutting 25 of its workforce around the world. Companysid the revenue this year would be half of last year and that 1900 employees worldwide will be affected. Layoffsobviously these around the world are devastating, and certainly so at airbnb. Tell us a little bit more about which jobs are going to be affected. Coronavirus has really been hammering the travel sector lately. In the email to all staff, he said that collectively, they were living through the most harrowing crisis of their lifetime and it has brought Global Travel to a standstill. They raised 3 billion in capital, dramatic cuts across the company. But, he realized that he would need to lay off staff when he realized when travel would return, and when it does return, that it would be different. He has given this note to all staff that the company will be reducing investments in Luxury Travel and the hotel sector. That he felto said like a torpedo had just hit the ship and talked about how airbnb has to get back to its roots. If and when the travel industry does recover, people will want to stay closer to home and not spend as much. What does that mean for a company that was planning to go public this year . Olivia the public debut has been thrown into jeopardy. I think this is airbnb trying to focus on what made it special in the first place, the everyday person who wanted to rent out their home to a traveler. Diversifying,een getting into transportation and , also branching out into Luxury Travel. Now, it looks like the company is really trying to get back to its roots. He is saying that he wants to get back to the basis to the basics, what was truly special about airbnb in the first place. A story that we will continue to follow. Thank you for that update. Meantime, our exclusive interview with spotify ceo. What is on his pandemic playlist and what is he adding on to grow what is the betting on to grow . This is bloomberg. Pandemic hasvid19 hard,e Music Industry canceling production and halting concerts. I sat down with a wideranging interview with the spotify ceo daniel ek. We talked about how his home country of sweden is handling the crisis and what it means for spotify. Daniel it is a little bit different than perhaps a lot of places around the world. The swedish government has a very different way of doing it, in that it has really not mandated social distancing. It is more a recommendation. All the stores are still open, all the restaurants are still open. Emily that has been kind of controversial . Daniel it has been very controversial. It has been widely reported by everyone from President Trump to reporters around the world, with what are these crazy swedes doing . Clearlyat least, we are it is aut it sensitive time. But i feel pretty good about where we are right now. Emily we have been listening to a lot of spotify kids, stuck inside. What is on your pandemic playlist . I know you have kids, too. Daniel obviously, a lot of trollsand of the soundtrack. I am actually very happy that get it onanaged to tv. It was something that our kids were looking forward to for a long time. The crazy thing for us is just how globally business is. We are in close to 80 countries around the world. Dealing with all of these various stages of the pandemic. Asia making a near recovery. Epicenter. T in the in u. S. Which is right now the middle of the epicenter. Which wille latam probably enter the epicenter shortly. , justs fascinating for me seeing healthy consumption , i dont think we have seen anything like this, how people changed habits, changed what people have been listening to. Realityng to this new we have been living in the. Emily we now have you now have 286 million users. How do you expect listening to shift over the next few months . Daniel we have been seeing an influx of new users including old users returning to the platform. I think it is hard to say. Obviously, my guess will be as good as anyone. Backuickly things can turn into normal. The big thing is really around the commute. To theirturning back offices, their places of work, i suspect we will see something that looks a lot more like normalcy. The second big thing for us is the gym. People are listening a lot to music while working out. People are working out but not going to the gym so much. That is impacting the type of music people are listening to as well. We suspect with places of work opening up and gyms opening up, we as a company will be more like normal again. Emily this has been hard on the Music Industry. There have not in any live concerts. You have selena gomez instagramming her own studio. Musicrd do you think the industry will be hit by this . Daniel it will be massive. If you look at an average artist today, about 80 of their income come from tourists. Comes from tours. If they will not be able to tour throughout the summer, that will impact many musicians. Not just that, but all the roadies and everyone else who makes this happen. It is something we are focused on and also why we created the covid19 relief fund where we want to match donations toward the Music Industry. Emily in the midst of this, you are still running a business and have to map out scenarios. Where you list priorities. What is on your best board right now . Isiel the number one thing something that has stayed the same for a very long time. That is going from a Music Company to an audio company. We went, about a year ago, we were at about a quarter million podcasts. Million. Assed over a about 60 of all podcasts are now being produced and distributed by anchor, which is one of our acquisitions last year. Really just making progress on making it easier for people to create profit to create podcasts, distribute podcasts, but also improving the consumption experience across the board. That is kind of gourmet focus. Kind of our main focus. Emily up next, more of my interview with spotify ceo daniel ek. What is the path to stronger profits . This is bloomberg. 49. 50 daddy, i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies, even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Emily welcome back. We got to see how listening trends are shifting on spotify in the midst of the pandemic. In part number two, we talk about how the Music Industry will survive how massive such massive disruption with production halted, live concerts canceled and artists struggling. The most important thing is we look at things as zerosum games. That is not my approach to a lot of these problems. When you look at the Music Industry, it is important many people make this distinction between the labels and spotify. That is not how i look at it. There is a lot of inefficiencies in the business for everyone. Look at the artist standpoint, the artist creates music. Used to be one of the most expensive things was around distributing the music. Getting it out to the retailers, that was a huge part of the risk. Now one of the biggest risks is in marketing that regard. It is harder and harder to get heard in the world. Labels are spending a lot of money getting out. That is something as an example but i think we can make a huge difference in making the whole process more efficient. In doing so, we can make it so this becomes a better enterprise for labels and make it lucrative for us to pursue that. Emily a lot has been made of spotifys relationship with the Music Industry, taylor swift pulling her music back off and then putting it back on, beyonce on a competing service. How would you describe your relationship today . Is it better or worse . Daniel it is night and day compared to when we started just 10 years ago. Much of what i spent every day people aboutcating what streaming was pretty largest point was the lack of imagining this could be the future. So a lot of the things we were dealing with was, why would i want to do this . The feeling of needing to own music was the prevailing feeling. No one thought streaming could revenue letource of alone the biggest source. A lot of that was educating the industry. Revenuenow we live in a world e streaming is not only the largest revenue source, but it is over half of all of the revenue for the entire visit industry. Now people are talking about, what does that mean and when have we reached saturation, and what will the industry look like and how many will it support . It is a different discussion than what we had 10 years ago. A lot of things were in the buildup phase when people were not sure streaming was net positive for the industry. It is here to say. It is here to stay. The industry has been growing because of streaming. Emily you are working on the longterm bet, allowing artists to pay to promote on the platform. How much do they spend modi new releases on spotify . The weekend paid to have his album promoted. It is a significant revenue opportunity. When you think about it, a huge barrier for a lot of artists today is the ability for them to market their music in an efficient way. Either you have to be signed to an agent level and beyond that level where someone at the company trusts this will be a big thing and they will in they will bet the farm on making that happen, but it will get harder and harder to do that. We want to democratize the process so there is more to measure the roi of that in a big way. We are early in that journey. We have been talking about it for some time but we are early in that. Over time we think this will be businessriver of our and increase in future profitability. About 50 Million People pay for a streaming service. How big can that number get . Daniel we talk about the fact this is an opportunity in the billions. A ton of emphasis on how people are paying, whether it is through the ad funded and environments funded environments or subscription. The Music Industry focuses on paid subscription. When i look at all of the paid subscriptions combined today, billion equivalent, then look at radio. In the u. S. , the radio industry, probably 2017 numbers, but the entire radio industry on the outside was in 18 billion. That is larger than the entire streaming industry. In the future the right metrics to focus on is not paid subscribers but how many people do we have in a Legal Environment where it is being monetized with the Music Industry . The combination of ad supported and subscriptions and all apart will join the feud a la carte will drive the future. Emily the share of u. S. Subscribers is declining as you grow internationally. What is the most important market in the next year . Daniel the Fastest Growing and latam right now. We are very excited about that. It is fun to see how people are engaging with it, the brazilians, the mexicans, everyone about music in general and spotify. It is fun. We can see things like rigatoni regaton now being a global phenomenon. Is fun to see how latin artists are becoming global artists in a big way. I dont think that is a coincidence. That is how much streaming has been growing in latam. We are investing in that trend and we are excited. Emily you are not in korea, which is one of the biggest markets. Im sure you can get a healthy op on spotify, but when will we see you there . Daniel it is one of the markets we have as a priority market. It is what biggest music markets in the world but also very vibrant community. You have bts being a worldwide phenomenon now. We are very excited about the opportunity and hopefully once covid clears up, you will see us launching. Emily the cost of spotify is lower in india and latin america and the music concerns Music Companies are concerned about devaluing the cost of music. Do you see increasing concerns to devalue like in the United States like netflix . Longterm there is that opportunity. In the near term it is about focusing growth for us. We talked a little bit about opportunity before. Acant imagine this not being one billion user opportunity around the world. We talk about the u. S. Specifically. Think of all the people consuming. It is north of 80 of the population. All of those are moving over online. That is the opportunity we are going after and it is still early days of that. Once you are hitting more of a maturity where it is hard to grow, that is when you are looking at price increases. We are not there yet even in what you would call the mature Market Street we are relatively early in that cycle of growth. Ek. Y spotify ceo daniel with spotify ever sell to dashwood spotify ever would spot if i ever sell to another streaming giant . This is bloomberg. Emily we have heard about how spotify is evolving its relationship with musicians and running its business through a pandemic. In my conversation, we talked about the companys dispute with apple and that apple is charging too much to be a part of the app store. First and foremost this is an ongoing complaint in European Union at this point. I cant talk much about the specifics on this but longterm we expect apple to open up. We are very encouraged about being able to finally use siri as a way of holding in voice supports and being able to build products for the apple tv and apple watch, something we have not been able to do unto recently. It is moving in the right direction but we have many steps to go before we consider this an open affair platform. Emily apple has stopped releasing numbers for apple music. Do you think their growth has slowed . Daniel i cant speak to what their numbers are. My guess would be as much as your guests. We have said publicly before, we are two times the size of our nearest competitor and we are about three times the engagement from the nearest competitor. We think those characteristics means we should be growing faster. Emily i wonder if you are surprised apple has not innovated in the industry that has been dominated for so long. Take. heres my we talk about the Big Tech Companies and how you could be greatood at Building Companies grew they are phenomenal companies, amazing businesses. There is something about focus. This is something that i have said a long time. We are unique. We are focusing all of our time and attention on this one opportunity. It is about bringing audio onto a big way andn moving off of linear radio and physical formats. That is what this whole company is focused on. Everyone is passionate about our mission, has a sure way of coming through. Coming here. If you are passionate about audio, spotify should be the company you want to join. Bety podcasts are a big for you, but it is a relatively tiny audience pyd you feel spotify needs to own podcast Companies Rather than being a neutral distributor like with music . Daniel it is a much more nascent marketplace in general than the Music Industry was. We are early in that journey even though podcasts have been around 20 years. Five, fivey the last to 10 years where you have seen fully dedicated podcasting companies that are only focused fulltimeth fulltime employees. We are earlier in that journey. For us to grow this platform, we think it is essential to drive the proximity to content creation and distribution much closer. From a strategy perspective, although there will be millions of podcasts around the world, there will be few which are the daily ritual. For us to build and invest in we think it iss, a better fit owning them and perhaps having them as a party relationship. You landed a highly anticipated podcast project with the obamas. Daniel we are super excited about that one. You will likely hear more about how is it going in the next few weeks. That is at the point where we can reveal more details. This is one where we are keeping tight lips on exactly what is going on. It is looking very good. We are excited. Many there are so podcasts and companies you dont own. You have your marked half 1 billion for podcast acquisition spree what might we see you acquire and what is the appetite for m a . Daniel we are pretty confident with the portfolio we have. Something that would be different than the ones we have already acquired, we would take a look, but it would be on an opportunistic basis. Emily the companies you have bought are known for true crime and sports. What other genres are you interested in . Daniel all genres. You talked about spotify kids. dramave that kids content will do well on the service. And you think historically it has not been a category that has been doing well on radio. We think there is a big opportunity in that space spree we see entertainment being a big category, lifestyle and entertainment being something where our audience are excited. There will be lots of categories. Some of them we can handle through our homegrown spotify studios as well which is what we built out internally. Emily would you make your most popular podcasts exclusive to spotify . Are e daniel we are opportunistic figuring out the right strategy, whether it is windowing or exclusivity. We have been experimenting. What you saw us do in this quarter, we had about 70 new originals of which a number of them were exclusive to the platform. You should definitely imagine exclusivity is a big part of the future when it comes to podcasting. Also video. Is original video has not quite taken off. What experiment in our you do to make it work . Daniel in all honesty we experiment with the video a few years ago. At the time, it was less clear how the landscape of video would play out. Are we going to see longterm content, short form shortterm like youtube, what would it look like . We pursued the opportunity to learn a bit. What we in the end ended up with strategiesg our key really around owning background moments and audio. Aroundtegy is really owning background moments and audio. We doubled down. Have am happy with that today. Other companies have invested billions of dollars to be competitive with the likes of netflix or youtube. Emily people like to float the idea of netflix buying spotify. Would you be interested in selling . Daniel i am not interested in selling. Are in thislike we it is unique time where probably once in a Generation Opportunity that we have in front of us, this Enormous Consumer shift, that are happening when people are choosing whatever they want to listen to whenever they feel like listening to it. They are growing up with new interests. Fascinating for me, we used to talk about the only thing that will work in media was shortterm content. We are finding people happy to engage with our and an hour and a half subjects to learn. We are talking about we cant have a professor in medical psychiatry talking about a clinical subject, but people are engaging with that. That is exciting and that is now the journey that spotify is on. It is not about just educating andut informing. That is rare and it is a huge opportunity for me, the company and ultimately it will reward the shareholders to go after that opportunity as well. Emily that is just part of my interview with the spotify ceo daniel ek. You can find the whole conversation later this month. Hit disney earnings again. The crisis costing the company 1 billion in theme park revenue. How it is all shaping out, the Company Completed their Earnings Call. I will have headlines. This is bloomberg. This is bloomberg. Emily recapping disneys results, losing as much as 1. 5 billion in profit because of the covid19 crisis, most of it wiped out by theme parks. Disney plans to reopen shanghai disneyland on may 11, a small part of its revenue, symbolic step forward. They are keeping their fingers crossed. There are movie schedules for july. Many theaters remain closed. This is the first Earnings Call with the new ceo bob chapek. Disney plus streaming showing strong numbers, 54 million subscribers. We are following beyond meat shares, spiking after the Company Reported a profit and revenue of 97 million. Meatism about lab grown especially since we are in the middle of a pandemic, you eliminate safety issues. Retail sales dominating the bottom line. The company saying the crisis is not impacting the supply chain so far. We will monitor both of these companies and you can say a you can stay tuned for updates on daybreak australia which starts now. This is bloomberg. This is bloomberg. Haidi good morning. I am haidi stroudwatts in sydney alongside shery anh. These are your top headlines for u. S. Stocks survived the last minute stumble as virus reopening optimism outweighed cautious comments from the federal reserve. Oil maintains its recovery from last month plunge as more economies last months