Major overhaul coming for apple music to make the service easier to use. And they say that musician trent rezner has been brought in to oversee the redesign, and there are some clashes with jimmy iovine running his own negotiations. And so, the maps and the watch, and music, and sometimes the first inning is not the best inning. True. Im not personally a big fan and user of apple, but they do though have 13 million paying subscribers that is to my back of the envelope calculation is 1. 5 billion annual run rate, and that is pretty good. They are continuing to grow, but the service is pretty clunky and hard to use and not exactly great from the experience. And now, with this new position to take over the rein, and they will have more user pleasure as they try to streamline. And melissa, what about the lines of the hardware as opposes to the services . Well, it is important because apple has put a lot into it. They are putting a lot of marketing into it, and they have got at lot of star power behind it. The one thing that i want to see is the better integration with itunes, and when it comes to the experience, it is a separate app where it is not itune, and that is where it falls short for me. So i want them to change it. Itunes is so sacred at apple, and the organization there is so sacred, that it is a big deal if we see the barriers coming down a little bit, but i am not sure that we will. Mike, what is your take on where apple feeds to go with this . On the one hand we want to see better integration, but on the other hand, there is omuch crammeded into the apple music to begin with which is my frustration of the service, and facebook has done well splitting off the different things, and messenger from the main app to clarify what is to be used when. From your point of expertise on how the whole mobile app evolution is working out, what do you think that they need to do . Well, look, first of all, if you are bringing in trent rezner to the the overhaul, you are bringing in heavy hitter who created the machine. But here is the thing, i use spotify, and i have not found a compelling reason to switch over to apple music. There is essentially feature parity, and i can to the play lists, andiovines big pitch before apple bought beats is the artistcentric cure ration element of the service, and there not much different that apple is doing there in terms of spotify. Spotify has the service, and i dont know if you have used it which is discover and it is al go rhythmic based and suggestions of music that you might like, and so apple needs a fee can chur to differentiate themselves or they are just another art shark that doesnt change from spotify. And so, you use macs and iphones . I do. You do. So isnt that the point . Is to have the hardware and then get people to switch into thor viss, right . Be part of the ecosystem . Well, it is, but at the same time, they put this apple on android, too. So for the one special service, they are trying to appeal to everyone like they did with the itunes to begin with, but with the difference of the itunes they were the first out of the gate with the legal music service, and this time, far from first, and the mainstream music lovers and the people who know trent rezners street cred like isaac says it is not the best. Okay. Guys, after earnings and revenue helped to beat revenues for cbs, they were helped by the super bowl and the campaigns, and so this is what leslie moonvez said about the competition of digi l digital. We dont believe that any skinny bundle can exist without cbs. We have the number one schedule, as i said in primetime, and we have extraordinary array of the sports, the nfl, the ncaa tournament, late night, 60 minutes news, and et cetera, and any bundle out there that expects to be successful with the public has to include cbs, so weal feel like we are going to be included, and we are going to be paid appropriate ly for or channel. Jessica, the headline out of variety today is that at cbs news, the future may not be tv s. That putting it too bluntly . Well, it is a little too blunt, but it is also rosy to believe that every bundle is going to have cbs, and that sounds like great negotiation, but you know, i think that we are all seeing all different types of the television packaging, and obviously, the huge fragmentation, and again, it is nice negotiating, but of course, we have not seen the apple bundle allegedly coming together, too. So there is a lot of the roadblocks on that, and the licensing business as cbss results showed, it is not as great as it used to be. So strong advertising this quarter, but reduced fees from licensing as those fees are coming under pressure, too, so there is a lot of open questions about this business right now. I know that les was opt mimisti about the upfronts, but hearing a lot of the mixed things, and the outfronts are very soft, and this week in new york, we have the new fronts talking about the digital side of that market. So i just see many, many open questions for this business. And mike, one of the many questions for this business is exactly what the revolution is, and everybody agrees as the revolution in tv, and the consumers wanted a pricing revolution, and more and more it seems that the stuff is getting pretty expensive and is this a pricing revolution, distribution revolution, content revolution what are we getting . Yeah, look. I mean, think about what you subscribe to right now. I have a netflix subscription, and i have hbo now or go or whatever the a la carte option is there. Theres hulu and a bunch of other smaller things, and those oneoff subscriptions add up over time, and that is not going to include the sports package which frankly a lot of people coming to get the bundles are looking to get anyway. So you have to sort of weigh, am i actually saving money on this, or take the bundles that they have is a bunch of channels that i am wanting to look at. And you were talking about the subscription fatigue a year ago. Yes, yes. And sometimes i get this right. N now, to me, the apps are like the remote controls, and you used to have three or four different remote controls to be a pain, and now you have to open up three or four apps like the hbo now or the hulu or the netflix and remember where you stream that show, and that is not a good experience. Mike . Le with, it leaves open, jon, i think also the oh. Go ahead. And i feel passionately about the bad experience, but it leaves open some business opportunities, too, right . People need to solve this, so whether we are looking at the startups or ways obvious ly fo the Companies Like apple that are trying to do the more integrated siri apple tv, you put it well. This is the point that we are at, but it cannot be possibly the end point, because it is frustrating, and there is some opportunity there for someone to crack. Yeah. And finally, guys, tackle twitter. The shares are rebounding a little bit today after closing the all time lows, and twitter close the falling 50 p below the original ipo price, and one analyst has a buy on it this morning, and Yousef Pasqual joining us now. Welcome. Thank you. And fou, your content is built around the nfl, and what is giving you confidence a that it is coming . Well, it is more than that, and what you are seeing twitter doing is to pivot are from the facebooklike social platform to Start Building awareness around the special events. The nfl is one of them. You the olympic, and you have the european champions league, and obviously, the election, and what we are saying is that as they are going to start nailing them down, and improve the measurement, and their analytics which is very, very important to the brand advertisers they should be able to see higher ad budgets coming their way, and again at 14, none of it is baked into the stock. And mike isaac, i cant help butnotice the contrast of the same from cbs, super bowl should have been great for cbs, and should have been great for twitter, and so is this going to change things so that the big events translate into revenue better than they have in the past for twiter . Well, the street got really spooked at the last earn inings quarter, because as you know, the twitter has had a user growth problem consistently since before the ipo, and the business side of the house is always really delivered every single quarter, and this is the first time that the management said, we didnt see it the same demand from the brand advertisers that we thought, and we had to lowerer the guidance and it spooked everyone. Is that going to the change as they can boost the userer fwroet over time . That is their hope, and i think that what yousef said, they are working on the measurement stuff to tell the brand advertisers, and other advertisers, look, we can actually sew you what your roi is here. And again, that is coming later on in the year. I dont know if it is enough to freak everybody out or to stop freaking everyone out, but that is what they are counting on. Yousef, this morning i heard someone say, what does it say from the maus are flat sequence sally in north america in on of the most extreme political cycles in decades. And if this is not enough to get people on board, why would the nfl be . Well, look, i the think that everybody was focused in on the maus up until last quarter when they showed the flat to slightly up. People that want twitter or compare it to facebook are going to lose. Sorry, twitter is clear ly not going to reach a billion or bill yop and a half. And so now, the promoted tweets are not in vogue. So what management has to do so integrate it in the way that facebook did in 2012 in mobile, and nobody gave them credit, and so i think that, yeah, the jury is still out whether ta will be able to pivot. Jessica, can twitter survive in Silicon Valley when it comes to the hunt for talent, when it come for the hunt of advertising dollars as a secondtier social play, and accept the fact that we are not facebook, and hey, competing with us live, and competing for attention and advertising, and yes, we are not facebook, but still, come to us anyway. Maybe. But that is the question. Out here, too, what you are competing with today changes all of the time. And you know, the next app that is stealing usage and getting the advertiser interest, and so, that is a great strategy, but it is also facebooks strategy and youtubes strategy, and also the Media Companies and the networks strategies. So i think that we are not seeing the evidence that twitter is going to be winning that live. So at the same time we have square reporting the earnings this week, and jack dorseys other company, and so to get to the recruiting question and the talent question, that to me is something that we have to spend, and focus on, and investors do, too, and there is a lot of tension and questioning when he first took the role, but that seems to have die d down as things were kind of moving along, but with a quarter like twitter a had, we will see what comes out of square, and we will hear more questions about who is the right person to be leading both. And my favorite was the other day when the best performing s p stock, and the worst performing had the same ceo and you can guess who that is. And now, than you all, jessica, and mike and yousef joining us to talk about twitter. We want to check on the markets now. The dow is down about 73 point, and the nasdaq and the s p are both down half a percent over that, and time warner share s are in the green after the revenue beat estimates, and the Strong Quarter powered in part by earnbings growth at hbo, and shares of match group just absolutely skyrocketing now up 25 after the earnings and the revenues topped expectations, and the company is seeing the paid member count jump 36 primarily due to growth at the right or the left here . Yes. And now, with donald trump the likely gop nominee after winning indiana, and what is a trump economy looking like . And plus more of kramers exclusive with tim cook, and what he had to say about apples fight with the fbi, and look at the etsy with the first public profit since their private ipo a year ago. Squawk is back in a moment. Bend me shape me, any way you want me as long as you love me, its alright bend me shape me, any way you want me. Shape the best sleep of your life. Sleep number beds with Sleepiq Technology adjust any way you want it. The bed that moves you. Only at a sleep number store. singing alougetting to know you. Getting to know all about you. Getting to like you. Getting to hope you like me. Is someone getting to know your credit . Not without your say so. Credit lock lets you lock and unlock your transunion Credit Report with the swipe of a finger. Getting to know you. Getting to know all about you. Get onetouch credit lock, plus your score and report at transunion. Com. Get in the know. Donald trump moves from likely gop nominee to pres presumptive after winning indiana. John harwood is live in washington with more. John . Jon, with trumps victory over ted cruzs win in indiana last night, he seemed to complete the amazing and someis times divisive rise to the top of the Republican Party and when he did it, he said that he was in a mood to unify if country. This country, with it is very, very divided in so many different ways is going to become one beautiful, loving country, and we are going to love each other, and cherish each other, and take care of each other, and we are going to have great economic development. Now, the problem is that he starts the general election significantly behind Hillary Clinton, and look at the averages from real clear politics. Com, a nd he is is dow 70 points to Hillary Clinton, and in the wider margins of the polls out this morning. Be through is a path to his h victory if he can energize the support in the election among those same White Working Class voters in the primaries, there is a shot. If you are looking at the map, if he can bump up the share of the white vote by fife Percentage Points from what mitt romney got, he could flip some states including the rust belt states, ohio, and pennsylvania, and virginia and iowa and colorado and new hampshire, and that is a potential path for donald trump to get to the electoral vote majority that he needs, but it is not easy at al all, and is it going to be a very negative campaign, because both Hillary Clinton and donald trump are fwgoing to to be targeting each others very high negative ratings, guys. Voters are prepared for that. Thank you, john harwood. And so with ted cruz troping out of the race, that leaves trump as the likely gop. And what led toup to the behind the scenes to lead up to the moment . Our next guest is the author of off script josh king. And your book is going back to dukakis and the tank and extreme examples, but what would the playbook be from the stage kraft point of view if trump were the client . Well, he is hard to advise, because he is incredibly consistent since last june when he escalated the gilded trump tower in the branded blue suit, and the departures are the white golf shirt on and the khakis and the red hat at the border. And i am told by the golf buddy, that is all you see him in, and who is to question him who came are from nowhere to trump tower in that blue suit to do anythingp that the formula that has gotten him to this point when all of us said he has no shot. So has he rewritten the rules of stage kraft or only apply if you are a brand name billionaire who had his own tv show before . The 15 years of apprentice cannot be discounted to the cities and towns that he goes to that are not the most bold places on the map. To go to have a celebrity descend into town, no matter who it is, it is going to draw attention especially when the 757ley ri leivery is branded fs well as the helicopter. And why would that brand not matt matter . Well, carl, it has gotten him this far, and you can see in the comments that john harwood played in the softening of the tone last nights and he has been experimenting with that for several weeks now, and i would expect that to continue. I would expect him to pivot towards the center. His native views are more moderate than most people in the republican primaries have thought they were, and so maybe the true more moderate centrist views will come out, and remember in the 15 years of apprentice the people he was working were union people, and were of different sexual orientation, and he is very familiar with the milieu. And he is aware of the impact of john mccain picking sarah palin, and so what does he have to do to have the right kind of stage kraft for a v. P. . It is seen as the first decision that a president would make, and when palin appeared with mccain, it was a huge moment that turned into a catastrophe not long after that, but think of the implications of what donald trump and the decisions that he needs to make in the general, and the washington insider, but what about the olympia snowe, and bringing her out of retirement, and joni ernst, and utilizing the female advantage that clinton has and a big decision he has to make. And we are in the social media where gifts and photo consumption is gone out, and so if you are eating pancakes or reach for the bottle of water in the response speech, it lives, and becomes a symbol of sorts. Right. How do you leverage that and aufd the trouble . Well, if you are like donald trump, we have not seen him eat much on camera have we over the last year. On purpose. And mark levovich wrote a piece about digging into the potatoes awe gratin, and so there is to picture. But if you are john kasich, there is a big deal. I saw heidi cruz elbowing the husband at the minute he is pulling out of the campaign, and it is terrible insult to injury, but if you are a fuse producer trying to put together the news, you say, that is funny, and keep some eyeballs by showing it over and over, it is really unfair to people who are putting their careers on the line. In this case, unfair injury to insult. In this case, if you want to see how stage kraft is doing as we get into the general now, john kings book is fantastic. Thank you, carl. And apples ceo tim cook is sounding off on the government in his exclusive government with jim krcramer, and more on that coming up. Apple ceo tim cook talking about the government and the 2016 e e lek is shun in an exclusive interview with our jim cramer, and this is what he had to say. I think that government in general has gotten quite dysfunctional in the u. S. In some other countries as well. And so, what that does, i believe is to put more responsibility on the everyday citizen and companies to help p promote change and improving things. I dont mean to play a government role, but it is not just government who can change things. Jim also talk to cook about his relationship with the late steve jobs. Take a listen. I had incredible love and respect for steve. And i think that there has never been anyone like him, and belie believed in the unbelievable. And apple trading down about 10 . And i dont