Transcripts For BLOOMBERG Best Of Bloomberg Technology 20170722

At the Fortune Brainstorm tech conference. First, to our lead. Netflix Earnings Results exceeded expectations. There is little room for error. Shares climbed 30 this year. They delivered on a key step, adding subscribers. A big portion came from outside the United States. Caroline hyde sat down with cory johnson. Cory johnson they dont see the financial results. What they see is a business that might someday generate the results. How do you have the cash loan to pay for all that content . By having subscribers that pay every month. They see an accumulation of subscribers who are sending credit card numbers in and the payments keep flowing through. The hope is there will be a geography like the United States and canada that are profitable and thats the future for the rest of the world for netflix. Caroline amazing. 104 million users, for the First Time International users will bring them a prophet. We are looking at the financial analysis. You can see that at the moment the Revenue Breakdown isnt just in the United States. You are looking at 2016. 36 is coming from international streaming. They want to get that to 5050. Is there any idea of when revenue will come into line internationally speaking and how they do so well with content . Cory i am always a pessimist. When i look at these numbers and i look at how little of the u. S. Population they actually have when it looks like the market is full, there might be a lot of growth for them internationally. We will see how the spending patterns are different. They dont give us a lot of country by country detail. That might be to much to ask. They were asked about doing this this with sudan. U. S. Companies are banned from doing business with sudan. They pointed out revenues are as low as 8,000 in sudan for the 16 months that proceeded their letter to the fcc. They are not moving the needle. I think its kind of important because what it tells us is not every place is going to run netflix like they do here in San Francisco or london. Different parts of the world are different during its not just different. Its not just about the way the internet exists in different countries. People will not be able to stream as much in certain places, they are not going to want to stream the netflix content as much. It is still a hit driven as this. Theyve done a good job with some good shows whether it is luke cage and house of cards. A lot of the stuff has missed the boat. That is hard to do when you are dealing with so many different cultures. Caroline there was an amazing array of content. Orange is the new black, if you dig into the letter you are getting from the ceo to investors, it seems he is trying to deflect competition. He said there is room for everyone. They make the internet tv market expand. They say hbo has exclusive content and more people are using hbo. We have exclusive content and more people are using us. More people are using youtube. Is he right . Cory its ridiculous. Its flatout ridiculous. Its true. Its great for us as viewers and its great for us if we are creating content. It would be more fun if we were in hollywood doing that. It is horrible for netflix because the cost of the content is going up. The number they dont throw into the Balance Sheet is the longterm costs for content. They had over 15 billion in longterm commitments to content. That number is going up. How high is it right now . Right now, we dont know. What is really interesting about the report today is they put a separate presentation on their Investor Relations pages and the accounting for those 10year commitments. I will tell you, for a business in the 50 billion 50 million quarter, it is hard to pay for 15 billion worth of content. They are going to have to jack up profits a lot. The problem where they are raising the cost of content, they are raising it for netflix when it netflix does not have cash to burn. They lost over half a billion in free cash flow. That cant continue. Emily that was Caroline Hyde and a cory johnson. The Fortune Brainstorm tech conference was in aspen this week. A big topic was the state of cybersecurity. Major hack attacks continue to rise throughout the world. I spoke with someone with expert knowledge, former director of the nsa keith alexander. He is now at the helm of iron net cybersecurity. I asked him about the boldness of Russian Hackers in the u. S. Election. Keith its not just that its blatant, they were not prepared to defend. If you left a bag of money on a park bench and then you were surprised that somebody stole it, you would say secure your money. Where i think that gets us is secure your network. We should not be hobbled with ease. Weve got to make these changes in cybersecurity. It cant be done by industry itself. It has to be an industry government partnership. I think this is an area that the Trump Administration has taken on. Its important that government and industry Work Together for a defensive architecture that can block these kinds of things in the future. Whether they are blatant or not, we should not have people who are losing intellectual property to lowprofile hackers. Emily what is your impression of they are taking this seriously enough . Keith i have met twice with the president. Both meetings have been great. He has asked all the right questions. He has pointed to his officials to help. He is coming to industry and the government. I think he takes it seriously. He understands the threat. He has an amazing lead person. What they are doing is trying to put this in the right place. I am optimistic that the government will move forward. I think we need that. There is so much you can do as a cybersecurity company. For sectors in the nation, it takes the government to weigh in. I think we can get there. Its an air Defense Network over the country. If we have everybody defending each state with their own system, that would not be a defensive infrastructure. Thats what we are trying to do in cybersecurity. We have to change that. Emily we understand you have been advising the administration. What advice of you given President Trump . Keith great advice. Its always been great. We have to Work Together. The interesting part is my experience in the Financial Sector and in the Energy Sector, they are willing to pay and do what it takes to get security. Thats great across the board. They have been great to work with. The Cybersecurity Team in the Financial Sector and the Energy Sector are doing great work. The missing link is when they are being attacked, who do you call . There is no answer to stop the attackers. We have incident response, we dont have a way to block the attack. If you jump forward to the election, who do you call . Its always after the fact. You need to have a way of defending that network. That takes industry and government to Work Together. Emily if President Trump is taking this industry seriously, why hasnt he publicly acknowledge russia hacking the election . Keith thats a more strategic question. What do you want to do with russia . How does the Administration Work with russia in the future . Do you talk to them quietly on the side . Do you put them in the eye . Publicly, i am not going to make this harder than i need to. How do i privately engage the russian government to get to the right place . We dont want to create another cold war. We dont want a war. If that is the outcome we want, we have to have a partnership. 40 years in the military, russia was always the adversary. At the same time, we have to be conscious. Its like that movie where you are looking up at them. You have to figure out in the middle east and other areas, how do we work with and not against them. Every administration, the obama administration, the bush administration, they are trying the same thing. If you remember the obama , administration went in with a reset button. We have to give them time to work it out. That means dont poke them in the eye yet. Emily weve got all of the agencies saying this happened. It seems like the president is at odds with his own intelligence agencies. Keith he is giving himself the ability to deal. It comes from when you are a ceo and you want to have a strategic deal, you leave yourself enough room to negotiate. I dont know specifics on these things. I have not asked on the russia stuff. I am giving you my best thoughts. My experience in dealing with him on cybersecurity, he is very thoughtful. I thought he was well read. He knew all the facts. He had read everything. I expect on russia he is doing the same thing. The question for our country, weve got to ask strategically where we want to be with russia and china. Emily that was former director of the nsa keith alexander. Facebooks Whatsapp Messaging Service has been partially blocked in china. The government began breaking down on the virtual private networks, or vpns, which allow data to be routed overseas. Social Media Censorship has been ramped up in china. They are preparing for their 19th communist party congress. Coming up, our interview with Penny Pritzker on the approach to trade in the white house. This is bloomberg. Emily lets return to our coverage of aspen. I sat down with Penny Pritzker. She spoke about the Trump Administrations approach to trade. Penny we tried to give our successors the benefit of what we had learned over our tenure. We took the transition very seriously. I think what is challenging is as it relates to the issue we are working on here at the fortune conference, i think the future of work requires a focus by not only the private sector but also government to work on training and dealing with the Skills Mismatch in the short run and making sure we are training people for jobs of the 21st century. The second role of government is one if you are talking about an an economicn, competitiveness plan, it is opportunity. Trade for example, its challenging to watch us walk away from multilateral trade agreements and narrow our focus to either bilateral or smaller trade agreements. Emily are we at risk of a trade war . Penny i wouldnt bet on a trade war as much as the narrowing of our focus and agitating our trading partners is not helpful for creating opportunity for american business. I worry about that. I think i want to make progress. That is important for the United States, for us to have good and functional open free and fair trade agreements. We need to get those in place. Because the more we talk about it and not take action, the more opportunity we are creating for our competitors. Emily what are your other big concerns . Penny its not so much the Trump Administration. If you think about how we have a competitive america, we need to deal with trade. We need to have tax reform so our companies can be competitive. We need to be investing more in infrastructure than we are. Frankly, conferences about Immigration Reform is a moral responsibility and an Economic Opportunity we are letting languish right now. Creating greater opportunities is one part of the conference of Economic Strategy for the country. We need to have a social safety net that acknowledges what 21st century work is like. Weve got 55 million americans out of 140 million working americans in the ondemand economy. We have to make sure that the social safety net is supporting all americans. Whether its health care, we just cant repeal health care uninsure 20 million americans. People have to be receiving access to health care, workforce training that will allow them to be successful. In the fortune conference today, we were talking about the fact that americans want to know they have stable earning capacity. They want security and that. The social safety net is a part of that opportunity. Workforce training is part of that. Emily former commerce secretary Penny Pritzker. The British Government needs a few more weeks before deciding whether to let Rupert Murdochs 21st century fox takeover sky. This is according to karen bradley. She may refer the deal to the competition and Market Authority for an investigation of murdochs media influence. Coming up, we bring you a sitdown with an uber executive on the prospect of growth after a tumultuous few months. Plus, we will have more coverage from aspen, sitting down with the ceo of priceline. How they are maintaining company growth. This is bloomberg. Emily uber is trying to break into Business Travel. Erik schatzker caught up with peter jonas at the Global Business travel Association Convention in boston. Its the Worlds Largest Business Travel event. He started by asking about the Corporate Program uber for business and how it differs from the usual ride offering. Peter its a tech layer, a platform we put on the existing application. In the early days of uber, we saw a ton of momentum coming from the Business Travel community. As a result, we realized there was a lot of friction for Business Travelers that we could remove. It was intended to remove that friction. We continue to extend the reach of uber for business outside of that into other areas. Erik you are trying to appeal to corporate customers. What services do you need to add . Is this fully baked already . Peter uber moves people and things. That is in the most fundamental sense. Putting people in cars, and moving people in cars. It for businesses, its about your employees and your customers, moving your customers to an event like this or sending them home from the auto dealership when they drop off their car for repair. Finally, there is the movement of goods. You want to get goods to customers. As we start to build this business out further and the platform out further, we look at the low hanging fruit, which is Business Travel. There are so many people already using it. Its a 250 billion market globally. Uber has been prospecting for growth on a lot of fronts. Erik how fast do you need to grow to remain a priority . Peter we really focus primarily on the customer experience. Are we solving experiences for our customers . The answer is yes. The roadmap we have is going to have us solving more and more interesting problems as we of all the business. Evolve the business. Erik do you see growth accelerating . Peter we see growth accelerating. Eric there were deals that neil michael did. He was instrumental. Now that he has left the company, where does that leave you . Peter we are set up for success. We are set up in many ways, strategically, domestically, internationally, for success. We are in a great place. Erik how have things changed since travis left as ceo . Peter its been a very short period oftime. The company is focused on solving the issues we have in front of us. We are solving the cultural issues. The leadership aspect we are focused on. From a driver perspective, you have probably seen the releases around tipping, the wait time pay, all of these sorts of things are actions to start to solve for some of the things that have been exposed over the last few months as issues. Erik you came in a few short months ago from facebook. Given the culture you knew there, are those deficiencies when you arrived . Did you see a need for them to be changed . Peter i will tell you this. Facebook has an amazing culture. That is something that has been cultivated over the years. Uber has all of the nuggets you need to build a great culture. Its just a matter of maturity and the Leadership Structure and the organizational structure continuing to evolve, which we are invested in. Erik this is what outsiders wonder, whether its uber for business or the uber app that we know. How does a company make Big Decisions without a ceo . Peter i dont know if i am the right person to answer that question. Erik you have to live in that situation. Who is calling the shots . Peter different people were in place when the executive team that left left. They are incredibly confident leaders. They understand the business in great depth. Erik do you think morale is a risk given the fact that people are looking forward to an ipo that is on hold until the Management Issues are resolved . Peter we are focused on resolving any morale issues. We have things like you saw from the driver rollout, we have the pieces in place for an evolved culture. I think thats going to be solved. Emily coming up, the ceo of surveymonkey joins us. A reminder, all episodes of bloomberg tech are streaming on twitter. Check us out week days. This is bloomberg. Emily welcome back to best of Bloomberg Technology. I am emily chang. Surveymonkey is based in Silicon Valley but has turned into a global company, available in 190 countries and boasting 3 million survey responses worldwide a day. It overhauled its user experience, adding new services in an effort to lure more paying Business Users to the platform. Surveymonkeys ceo joined us to talk about the companys future. Zander tech has a meaningful role. As you look at the companies and stock market, the businesses are getting bigger and bigger and becoming more and more relevant. For example, the travel ban the president proposed hit is pretty hit us pretty hard only think about our ability to recruit talent. Our products are note touching people in countries all over the world. It is important we have a voice here and adhere to our values and stand up for the people we protect in our Employee Base and customers. Emily you have an interesting view on funding because surveymonkey has been profitable in the very beginning. Does that make you more or less interested in all the goingson . Zander we are most interested in how do we grow our business. We believe in profitable, sustainable revenue growth. What happened is we launched our whole new surveymonkey platform. Its an opportunity to take the voices of the consumers and employees you care about and turn it into actionable data. We are all swimming in a sea of data that plays out on social media. People talking about products and businesses. It is those executives who can ask why and use that data to take the actions they need to make their businesses better. That is what we have been playing for a long time. Emily you launched the People Powered data platform. And a new mission around curiosity. Explain this. Zander we think curiosity is the currency in business today. We believe that you need to be serving the constituents, the customers, employees and shareholders you care about. What are platform does is we have added all these new features of functionality and solutions to help executives turn those voices and actionable data. We have seen this play out in politics, in businesses. People have very different voices depending on where you are, what gender you are, what income bracket you are in, what education level you are at. If you care, if you are asking the questions and are curious, those are the people executing, growing, and turning fortune 500 companies from startups in a quicker timeframe. You are covering the companies that are not asking questions, are not listening and being responsive to the market and they are failing faster than ever. Emily surveymonkey does not need to go public, you folks have said, especially because of the profitability factor. It is at the same time we are seeing snap and blue apron and these new tech ipos struggling. Does that give you pause in terms of wondering surveymonkey to the market . Zander we have been profitable for a long time. We have a financial profile that is positioning us to go public. We have an institutional Shareholder Base and im a steward of our employee capital. We do need to deliver a return to our employees. To our shareholders. We have been operating like a Public Company with our debtholders and we are positioning ourselves to go public if and when the market is ready for it. We look different than the companies that have had sustainable losses. Im really happy with the way our income statement looks. Emily you guys did a really Extensive Survey about their and tech for the Fortune Brainstorm conference that i just returned from. One of the key findings was a major difference in the perception of the problems between men and women in tech. Women believe there is still a problem. Only 38 of men do. Are we living in two different realities . Zander i applaud your efforts. And those from new york times. Those women who are covering this space and women speaking to the issues. We are living in two different worlds. The voices that matter are the women who feel affected. It is high time we take a broader view of what is going on. Company executives like me and others have a real responsibility to make sure we are putting in place the kind of policies to not only provide an diverse inclusive workforce, but also to provide for our comforting and belonging workforce once people get their. Emily we had a spirited discussion, and at one point, a gentleman in the audience stood up and he said at the beginning he knew it would be a controversial point but he suggested that perhaps women need to support each other more. The ceo of opentable stood up and she was very emotional and had this to say in response. In Silicon Valley, there is a sisterhood of women who are supporting each other, telling each other about board opportunities, giving each other business ideas. There is a sisterhood. Emily we could have talked for hours. So many differing opinions and viewpoints about what the problem is. You guys broke down a lot of the numbers. What was the most interesting thing you found . Zander i think you highlighted it, and it is exacerbated in technology that when you look at the percentage of women in leadership roles, the percentage of women on boards of directors it is not just women. We have Research Groups are africanamericans, latinos, lgbtq community, and we think these groups underrepresented in leadership have a real impact, not only on the products you deliver, but on how you market your products and deliver them. We need to be pushing harder on recruiting, on the employee policies, on the training and mentorship. Parental leave is something that is very important to us. We provided men 16 weeks in addition to women. It is making sure women have a support system at home and are not necessarily the ones who are deemed to be the ones who have to plan for that early childhood. Emily surveymonkey ceo zander lurie. There is a mass exodus happening at hampton creek. The entire board of the food start has reportedly abandoned ship. This according to people familiar with the matter, jose only ceo Board Director that only one for director is left. At least five directors have quit over the past month. Others are either fired or have walked out since april. This comes after a string of controversies, including a bloomberg report showing they quietly brought back its own products from supermarkets. Coming up, the ceo of priceline. How it plans to fend off the competition and maintain the companys growth. Plus, they brought you hits like mad men and breaking bad. How amc is competing with the likes of netflix. That is next. This is bloomberg. Emily priceline Ceo Glenn Fogel took the reins of the internet travel giant in january. It is one of the Worlds Largest travel platforms. I caught up with overt exclusive interview at the Fortune Brainstorm conference in aspen and asked about the companys strategy to keep priceline in the league. Glenn i think we will keep doing what we have done in the past. The strategy does not change, which is providing service for both sides of the market, the traveler and the supplier. The idea always is use our technological skills, use what we are able to better than the supplier. It is to use technology to provide Better Service for those customers. Emily the e. U. Just left google just slapped google with a massive fine based on favoring their own products. Do they need to take a closer look at how google handles it . Glenn it does not say exactly what google will have to change in their practices. Into we see what that changes, we cannot comment but google has been a great partner for us. We have done a lot of good work with them in the past. And we hope to have a great combination in the future. Emily is there an opportunity for Priceline Expedia to benefit here . The market does not think so. Glenn we dont know how the are going to make changes and what theyre going to be. The fact is when google had to make changes in the past or when you wanted to on their own, they have been advantageous to us because we have been able to adopt quickly. The Technology People we have are able to take advantages of these changes. Google is a wing man to the pilot up front and the able to get those new things out very rapidly. It is one of the benefits of scale. We can afford always people to all these people to be able to work on this. If you are a small player, you dont have that many people, you dont have the luxury of making sure that is an advantage for you. Emily the Hotel Industry is mounting a campaign claiming priceline and expedia are monopolistic. What is your response to that . Glenn lets be careful here. That is a lobbying group saying that. I have read some nice things from some of the ceos. I am not sure where that came from or what that was. Two, we right now only book a single digit percentage of the total number of hotel rooms and properties, homes, apartments on our system. Single digit percentage of that total inventory. That is a very small number. I think that says i have to disagree with people who say we have some sort of large market share. I think they should look at the statistics. Emily airbnb is looking to expand into travel booking. How worried about you about airbnb . Glenn im concerned about all my competitors. I want to make sure we are always on the cutting edge and making sure we can do things a better way. We came from behind when we started out. We were small. In europe, our biggest subsidiary, booking. Com, no one had ever heard of it. We are used to undercutting bigger people, so im aware of people smaller than us. Who are coming up quickly and saying, what are they doing . That is why we are spending so much time, energy and money building on our own home, apartments and villa products. We have over 700,000 Properties Like that in our system. People are not as aware in america about this, but we are going to actively make that happen because i believe being able to see both, that type of home, apartment, hotel, and villa in the same search. Im going to iceland my family. When i looked, i wasnt sure if i wanted an apartment or a hotel. On the booking. Com site, i saw all of it and they were all bookable. A lot instantly bookable sometimes. 100 of ours is instantly bookable. When i press, im done. I am like, a message goes off, maybe it will come back in 48 hours, thats annoying. Thats friction. Our goal is to get rid of that friction. Emily when you said you will actively make that more visible, what is that mean . Glenn people are getting more inventory. 700,000 properties. We want to have a lot more. Everywhere of every type. That means making sure some type of marketing, i will not say what it is, i want people like you who say when you want a , condo to do some skiing in aspen or a place on the beach, i want you to think booking. Com. That is what i want. Emily you still own part of the chinese Online Travel giant sea trip. They want to expand internationally. Does that mean more competition for you . Glenn we believe in our partnership with sea trip is very beneficial to both of us. Ive had a great relationship with Senior Management for over 12 years. Our investment did not come until i had gotten to know them for a long time. We think there is a lot of room for everybody in this marketplace. You are in china for some time so you understand the chinese market. There are a lot of people who are cooperative and competitive. I have no problem with this at all. I think we will hopefully keep our relationship going for a long time. Emily you plan to hold on to the stake . Sounds like you are not planning on selling it. Glenn i never try to make predictions about what we are going to do in the future. That is not very healthy. We are very happy with our relationship. Emily there has been no shortage of Tech Companies focusing on food, as we know. From blue aprons recent ipo and bid to buy whole foods. We spoke about the Companies Strategy for growth and how competition is shaping up. They are two huge growth opportunities. One is being a global company. We are part of a Largest Travel Company in the world now. Yet, we are better known inning known in englishspeaking parts of the world. The idea we can become the global dining passport, the no matter what city you wake up in, you can have a set of experiences that you can book is a huge opportunity for us. The Second Opportunity is around having opentable stand for more than just fine dining, occasionbased experiences. We want to be known for everyday dining. When you look at the frequency of our user, we know they are going out to eat. In 2015, what they ate outside their home surpassed in their home. We believe we can be part of that education. What does that mean for us . That means having more restaurants that are more casual in nature. It means rethinking what the reservation actually is. If you look at our mobile app, within 90 minutes of seating time, 25 of reservations are coming away. That is not a reservation anymore. That is a homing beacon for what is available around me right now. That is not a reservation. Thinking about the type of booking or how to connect the restaurant and a diner together to be part of the everyday dining opportunity. Emily yelp is getting into the dining reservation business. Airbnb is moving into experiences. What is your answer to that . Christa restaurants are a small Medium Business category. They are in many ways a linear scaling model. Person times quota. That equals restaurant growth, and we have been at it almost 20 years. The enormity of that scale is hard to replicate quickly. A lot of our competitors have 1000 some only have 200 restaurants. If im a diner looking for choice, that is not necessarily have a choice. Emily would you ever get into Something Like delivery . It is a very hot area. I know these businesses do slightly different things. There is some sort of opportunity and just wondering how to execute it. Christa i think the logistics of delivery is incredibly challenging. We are not going to play that game. When i think about us being an operating system for a restaurant to the extent we can help them make sense of all the different delivery options and we can help flow into the kitchen works, i think we can play a part. Emily a japanese billionaire is betting on indoor farming. His softbank patient fund is leading a 200 million vision fund is leading a 200 Million Investment in a Silicon Valley company. They claim to have a super efficient method of growing indoor crops. Other participants include Investment Funds from eric schmidt and jeff bezos. Coming up, more highlights from the Fortune Brainstorm tech conference in aspen. Instagrams coo joins us to talk about the current app strategy and the success of the feature. You can check us out on the radio. You can listen on bloomberg. Com and the Bloomberg Radio app and in the u. S. On sirius xm. This is bloomberg. Emily amazon wants you spending. So much so, they launched amazon spark. Amazon users are able to post stories, ideas and images of popular products. The goal is to have product inspiration translated purchases with a click of a button. Amazon spark is currently only available on the companys mobile app. Meantime, instagram, one mobile platform that has been dominating the digital ad space. We spoke with marne levine. We spoke about how they are reaching their 700 million users. In five mobile minutes is spent on instagram and facebook combined. There are two billion people using facebook and 700 million using instagram. Businesses need to be on both. What is interesting about the Instagram Community is this. That is that people in the community really want to hear from businesses. About half of our community, 80 of our community, nearly half of our Community Connects with a business voluntarily. They want to hear from businesses. We have been focused on helping businesses big and small advertise on instagram, and we Instagram Stories just started advertising there and helping businesses connect more deeply with existing customers and we are seeing the businesses are finding Great Success on instagram. Emily how would you rate the success of Instagram Stories story so far . Marne i think it has been great. A year ago, it did not exist and now, there are 250 Million People using it every day. They are not just sharing highlights, they are sharing all the moments and telling their full story. That can come from businesses. Of the mostwatched stories on Instagram Stories, most come from businesses, one third. That shows people want to hear from businesses in feed and Instagram Stories. Emily instagram may be the one facebook platform where ecommerce actually works. You are doing some experimentation. You have partnerships with coach, j. Crew, how is the progress so far . Marne it has been interesting. We started out and had some pilots. People come to instagram because they want to connect with businesses. They want to connect with their friends and family. Sometimes when people are coming, they want inspiration. Sometimes they want to be able to act. They see a great pair of shoes and they want to be a will to to buy those shoes, but when it comes to shopping there is a journey in between. I think that instagram can play a great role in terms of helping to develop this. Emily that was marne levine. Seo of institute coo of instagram. It is the network that has brought you walking dead, and protocol c better call cau saul. Amc has had one hit show after another after mad men premiered 10 years ago. I talked with Charlie Collier and asked how the network competes with streaming Services Like netflix and amazon. Charlie talent is at the core of our business. It is without question where we all try to pay the most attention. They have changed the business because the greatest talent is a finite supply and we all go for it. When i have someone who came to bad, and thenng came to us with better call will nurture those relationships and we look for the Matthew Weiners and vince gilligans. Those of the people that feel our success. Emily can you spend as much as they can on a new show . Charlie sure, but we want to spend the right amount. We want to spend the right amount to hit the creative vision. You think, is the walking dead in the right place and doing the right thing . Mad men was transformational on amc and that is great. Emily what is your programming budget . Charlie more is not necessarily better. We talk about doing fewer better. We talked about finding a way to serve the underserved, passioned audience. We have a show like preacher, which we are doing with seth isen, and the creative risk is it as pure as it was for mad men for breaking bad. They brought it here and we nurtured it together. That has more to do with their talent. Emily when it comes to chord cord cutting, how do you take on a smaller network like sundance . Charlie understanding the audience. What amc networks globally had done, we are not 25 channels saying carry us. We are five specific businesses with five audiences and we know who we want to be. Have you been to the sunday Sundance Film Festival . Emily i have not, i would love to. Charlie the core was born out of Robert Redfords vision. He was in our offices last week talking about who we want to be. That is a unique audience and unique for the cable operator. The answer is to provide value. Emily what is the future of skinny bundles and how it changes the industry . Charlie to the consumer, skinny bundle does not mean a lot at all. We talk about making sure the fan has what they want when they want it. We have been successful. We are on sling and youtube tv. Its another way to distribute to the fans where they are going to be. I think what is great about the way we transitioned our business, we have been disrupting from the inside for a while. Not based on skinny bundles or some of the competitors you talked about, but based on the desire to serve the fan. Emily would you go direct to consumer . Charlie we Just Launched amc premier, a commercial free version of amc. Its an option for people with a unique system. Within ecosystem. The strategy is to offer more choices. We do know our fans better than ever before. One thing they say is, give me the opportunity to do what i want. We have been on apple for years. Now we have amc premier and we can develop to that. One day, who knows . Emily how is it going so far . Charlie it is great. It has been a soft launch, yet it has been a momentum creator. Those two things together i feel very good about. Emily how do you find your next big hit . How do you figure out what is going to strike at the heart of what people want to watch . Charlie the truth is, and this is not my quote, nobody knows anything. If they knew, they would just make hits. Take the odds and put them in your favor, the best way to do that is to bet on talent and give them a place to make creative risks. Emily that is it for best of Bloomberg Technology. We will bring you the latest in tech throughout the week. Remember, all episodes of Bloomberg Technology are now Live Streaming on twitter. Check us out. That is all for now. This is bloomberg. Vonnie coming up on bloomberg best, the stories that shaped the week in business around the world. Major banks beat earnings estimates, but there is more to the story. I think it was a little bit worse, but equities are little bit better. Vonnie investors read between the lines. Some big firms make outside hires while others groom from within. A setback on health care could knock the trump agenda for a loop. This failed and failed miserably. Vonnie bloomberg guests offer insight into the market