Headlines. Samsung says the money apple wants for Patent Infringement is 57 times to much. In san jose federal court, a professor testified if they have to pay anything, it should be . 35 a phone because of the five patents at the center of that case are of marginal value. Apple is demanding 40 per phone, or 4. 2 billion. The new York Attorney general, Eric Schneiderman ellis says more than 50 of the air bmb rentals appear to be legal under state law. Iss comes as the site fighting to cough up names of users tomorrow. Multiple reports say air bmb raised 450 ilion dollars in funding, giving it 450 million in funding, giving it a valuation of 10 billion. Air bmb takes aim at google fiber. The phone giant lands to expand its highspeed internet to 100 communities, including 21 major cities. At t wants to deliver the internet at speeds 100 times faster than standard web access. First, to our lead story of the day. It will soon cost more than 7. 99 a month for netflix subscribers to watch originals like house of cards. They will start charging new users one dollar or two dollars a month as netflix reported a big First Quarter revenue, revenue of 1. 72 million. Profit soared to more than 53 million. Netflix added 4 million subscribers, including 1. 70 5 Million International members. We have a roundtable to discuss all stop Jon Erlichman is here as well as chris edwards, who covers netflix for bloomberg news. The price raises the biggest deal. It or two dollars, what is going to be . Like they say it depends on the territory. They say they are raising it across the world for new subscribers. It will really depend on the market. I have not said whats going to the u. S. Any concern this could hurt their image question mark when they try to split off the streaming and dvd business, that did not work out well. Couldg changes, that disrupt a gain in new subscribers. When they run out the list of reasons, i think you are left with the message they are not concerned about price increases because of the adoption of netflix. A company withat over 48 million subscribers around the world will stop they talked about how the adoption markets outside the u. S. Has been successful, the netherlands, mexico. In fact, it was their International Subscribers where they had supplies lost a little bit. It is their message that absolutely, we are customer first. We dont like to shock people, but we are in a good position. They feel pretty confident that they can get to 90 million subscribers in the u. S. Managing better, director of Media Capital is joining us. When you look at the numbers and look at the hainan subscribers, the business seems to be doing quite well. Do you worry about a major change like a price increase . The major changes going to happen. You cant worry about it. You will have to try to fathom what its going to do to the share price, which is going through the roof as we speak. Talk about original programming. We got a little more color on house of cards will stop they dont break out the audience numbers. Why dont they if the audience is as huge as they say . To givenk a dont want their competitors any ammunition and they want to keep the prices down when they are acquiring these shows. They say the budgets of acquiring these shows are going up. Saide Conference Call they the free trials are driving new subscriptions. Thehat is driving them are originals and they say its doing extremely well for them. Isthe original programming very expensive. Is this something netflix can newain long term . Subscriptions are happening because of original programming. Reed hastings says the secret sauce is the metrics, which are more extensive and deeper than any other media or content provider has ever dreamed of. Ising original content harder than even netflix understands. No one pays attention to the original content that missed and did not draw any crowds. The first one that they did was a series called lily hammer. Which almost no one saw. Im not sure if they can continue to come up with house of cards was quote or breaking bad hits which was blocked off of cable. The missing numbers are not the original bits. Those are drawing a lot of attention and yes, they did spend well over 100 million on the first season and almost 200 million on the Second Season of house of cards will stop but its the hidden numbers, not the whatr of viewers, it is their turn rate is which is approaching 30 by their own customer research. It is a contingent liability on their off Balance Sheet with the contracts they have entered into for future content approaching 3 billion. They will really have to keep keepmomentum going and adding subscribers or they are actually going to hit a wall. They came out formally against the comcast and time warner merger. I have a statement they sent if the merger is approved, the combined company will pass 50 of rod and and households. Its dominant enough to be able to capture fees from providers like netflix. Why come out so strongly against the merger . I think there are those concerns about what they will have to pay longterm when so much broadband ends up in the hands of one player. We saw them cut a deal with comcast in anticipation of all this change will stop one of the things said on the call by Reed Hastings was Brian Roberts of comcast, nice guy. Int has to be 60 rod band the hands of one person or one company, hes a pretty nice guy am a but no company should be in that position. Its a concern because they dont have a lot of power over what theyre going to be charged on that. Jon erlichman and porter bibb, and our own cliff edwards, thank you all. Coming up, we want to turn to another story disrupting the media business. Good Supreme Court will hear arguments in what is likely the most Important Media case in american stop Broadcasting Companies versus area. But whats the legal issues the court will be deciding . Sam grobart explains. Bag now, you may have heard about area. Launched in 2012 and backed by barry diller, it allows you to watch broadcast tv over the internet. But is it legal . In 13 cities so far, they have created antenna farms, warehouses full of time size employees that work like the rabbit ears you would attach to your television. They receive free signals from broadcasters like abc, cbs, and fox. Signal and sends it to subscribers over the internet. You can then watch it on your phone, tablet or you can watch it later on the cloud. The service cost eight dollars or 12 a month, but heres where it gets sticky. Before that, there were three ways to watch rod castel vision. You could bolt an antenna and get it for free, pay it company for a box or pay Satellite Company for a dish. While you are paying cable and satellite companies, they are paying broadcasters to retransmit their programming to the tune of about 4 billion year. But do you know how much they pay the broadcast networks . Zilch. They argue it pulling down the same free signal anyone can get with their own antenna. The fact that the antennas happened to be in a warehouse anonymous drivers routes should not matter. Broadcasters say this is and they are no different from a cable company. In 2012, they were sued and the lawsuit hangs on one thing whether or not aereos retransmission is considered a public performance. If it is, they are infringing because they have not paid for the programming like Able Companies did. But if the Court Decides the service is just a lot of private performances, it would not be an infringement and they would not need to pay the broadcasters. So far, the lower and Appellate Courts have decided have decided with aereo, but now its up to the Supreme Court to decide. Arguments will be in april and will be a ruling by july. A quick programming note tomorrow, betty liu will be live in washington for an exclusive aserview with the aereo ceo he takes down the broadcasters at the Supreme Court. Thats tomorrow at 8 00 a. M. Eastern time. We will have more after this quick break. Im emily chang and this is bloomberg west. Facebook may be about to launch network. Mobile ad theyre offering a database of user information is a better way to target ads to users. A could reveal the new ad network at the Developers Conference later this month but they would not comment on this. They have been testing Something Like it. Could a new mobile ad form what would it look like for advertisers . My guest helps brands to target users with ads. How is this different than what already exists . Currently, aside from targeting on these but own the robberies, their website, their you couldhing control, this would allow them to create partnerships with thirdparty at develop men will were solder the game to the facebook ecosystem where facebook would presumably share some revenue with the ad developer. Although details have not been shared. Google has been doing this for some time will stop but thats correct. You look further back, with adsense, it was a similar concept where advertisers were flocking to google to be on the google. Com search engine. Based on what we know about what people are doing in their search behavior, why dont we allow any publisher to put an ad on their site targeted isn we will share some of the revenue generated from that ad with them . Facebook is presumably following a similar fate similar playbook. How does that change the broader mobile at lance gave you work in . Every marketer right now is trying to figure out how to solve this problem, that consumers no longer just have a single computer and they research and eight by everything from that one device. Today, people maybe find out about something on their desktop machine at work, if facebook if people use facebook at work. Im sure that never happens. And on the bus ride home they see with their friends are doing their and then they might go on a tablet and read product reviews. That presents a real challenge that needs to weve that together and understand where how they are going and do spend money across these devices, what was the result and what impact did it have . In the add role spaces trying to solve the problem of identifying who people are on one device, targeting them and then tracking it back to clearly measurable roi. Add role just raise 70 million. How are you using that money when it comes to building and developing technology to improve the targeting of mobile ads . A big heart of us raising such a healthy round was solving that problem because its a difficult problem to solve from the technical perspective. Datavolves collecting across multiple devices, being able to integrate with different ad formats and platforms. Launch month ago, we did our first mobile ad product which involved identifying users on a desktop device and then be able to reach them on the internet, namely facebooks mobile app and twitter. There are some resources behind us into needing to expand upon that and solve that problem for marketers. Some of the companies that do it you do that are public companies, they are struggling in the Public Markets right now. Whats going on with that and how are you different . It depends on the time horizon you look at. Look at where they ipo and where they are today, it shows that generally, theres a positive trend and we are still early days in terms of mobile. If i think back 69 six months or nine months ago, the conversation around mobile strategy has evolved so much. Now, marketers are figuring out ways they want to engage with users on mobile devices. Theyre building mobile optimized websites and applications and developing metrics they need to figure out how to drive people to those different properties, how to reengage people once they follow the apps. Have of theg a must Marketing Toolkit to understand how to get people onto their mobile properties and keep them engaged once they are there. Thank you so much for joining us. From tragedy to triumph she survive the Boston Marathon bombings and decided to follow her dreams of launching her own business. That is next on lumber west west. Bloomberg welcome back to bloomberg west. Im emily chang. Runners in boston are crossing the finish line in the citys first marathon since the deadly bombings last year. Is worked in technology for more than 30 years, inc. Looting a stint at apple, but after surviving a marathon bombing, she decided to follow her dream and start her own company. Now. Eavy joins me this is such an inspiring story. Tell us the basics. This is a woman who went to the marathon to cheer on her daughter and was injured in the ross us and decided to make a major life change. She was right by the first bomb, 15 feet away and ended up helping somebody who would ultimately lose her left leg. That person has credited amanda for helping her save her life. It was after the madness that amanda and her daughter reconnected. They were not able to reach each other. They didnt know if the other was libor was ok. Very to to various family members and when that did happen and they spoke together in the hospital, their daughter reference the fact that their lives would never be the same and they needed to make decisions based on their passion and purpose. Whatis what led her to ask am i passionate about and how can i help question mark in a year, shes started her own company. Its like an at sea for merchants abroad. She has collected artisan crafts from Different Countries and brought them back. She understands the artisan business well, whether you are a basket weaver or whether you make rugs in bolivia, she has talked to a lot of these people and got to understand their businesses and has understood theres a problem and they have a finite market in their own countries and have not been able to reach rotter mark gets. Shes decided she can help them do that because she understands marketing in the u. S. And can bring this is ms. That only exist in developing countries to the u. S. Maybe theres a marketplace for them. Back in boston . Yes. Her daughter is running again and such would be near the finish line, but probably not hear the exact spot. Save,d the woman she held she lost her legs, but they have kept in touch and erika has provided a lot of emotional support as she started this new business. They keep it in fairly regular touch and have seen each other number of times. Amanda says shes constantly reminded of the challenges of encounters the walls entrepreneurs hit as they are starting a business. This a particularly difficult business when you are dealing with merchants all over the world. Such an inspiring story. This as rush as runners are crossing the finish line a year after the deadly bombings. We will be right back with more thismberg west after break. Its 26 minutes past the hour which means bloomberg tv is on the market. Where we are trading. If we continue to hold, it will be the fifth straight day of gains. The dow jones adding about 30 points. Two stocks we are keeping our eyes on today, barrick gold and newmont mining. Worlds largest gold miners this down a against agreements limit companies were said to agreed to an all stock merger and the merger plan was said to hit a snag when they fail to come to complete agreement on which mines to include. We are back with more on the markets in just 30 minutes. You are watching humbert west where we focus on technology in the future of business. Im emily chang. But boxes have been in headlines lately as the search for glacier has gone on. Ht 370 one company that makes the systems as honeywell which has been a pioneer in Aviation Technology and invented the use of autopilot on flight will stop bob smith is the cto of honeywells aeros made aerospace vision which is working to bring inflight conductivity to flights worldwide by 2015. He joins us from honey will from honeywells Aerospace Headquarters in phoenix. The malaysian investigation in a moment, but i want to ask what is the cutting edge and aerospace . What are the most exciting thing you are working on . Forhank you very much having me. Its a pleasure to be on here. Things im lot of excited about and im afraid you dont have enough time to cover it. But we have some great trends going at our back. We have the connectivity of aircraft we are reducing this last island of capability where we do not have conductivity on airplanes will stop bringing it to the cockpit and back of the aircraft is a big deal for us. Changing the way we fly from air traffic monitor is modernization and technologies in which we introduce a green taxi capabilities of people can taxi around the airport surface using electric our as opposed to waiting for a trot waiting for a tug to show up. Those are very exciting things that will change the way we fly. You are also working on the ,d printing of airplane parts new jets in the airbus 350, but i want to talk to you about drones. Dronese been working in long before Companies Like google and facebook got into them. What do you think about their new interest in drones . I think Unmanned Aerial Vehicles will change the way a lot of flying is done in the world, whether in defense or commercial applications. I dont think we have yet figured out all the different these unmannedf air vehicles can be used, but there is a lot of technology we can apply. Autonomy, flight control, capabilities that require or allow these aircraft to fly will be vital to how they operate in the commercial airspace, which is an area where we have a lot of capability. We are bullish on where these are going to go and the things we have to go through our around how do you certify these and occupy them so you dont the many airspace and how do you make sure you are safe. Vehicle falling out of the sky would be a bad thing for a lot of people. We have to make sure safety regulations are there. Need a drone crashing into my house trying to deliver a package. But in interviews with other experts, it sounds like drone Package Delivery or even conductivit