we start with netflix. its shares have fallen sharply, down almost 12% in after hours trading after the tv streaming giant released disappointing results. netflix has shaken up the world of tv with its rapid growth, but that growth seems to be slowing down as it puts up its prices. let's show you some of the details. in the three months to the end ofjune, netflix had 151.6 million paid subscribers. that's a rise of 2.7 million on this time last year. almost half the five million the company itself was forecasting. in the us netflix actually lost subscribers for the first time ever. revenues were just over $4.9 billion dollars, up 26% on this time last year, but again slightly less than wall street was expecting. the compa ny‘s market position is under threat like never before. next year it will lose the rights to its two most popular shows, the office and friends, as owners nbc and warnermedia launch their own streaming services. disney and apple are also launching rival services. that means netflix is sp

wonder if any analyst or netflix watchers are talking about just hold up netflix handles q2 we've wondered this price hike before a weak con alternate quarter. was that maybe a mistake to do it i'm kind of wondering, was it maybe on purpose, so they just know q2 is often garbage, so why not kitchen sink it? >> that's a good question. i think if this, intentional, then they probably had not forecast that they were going to add 5 million subscribers in the quarter. there certainly was an element of surprise netflix itself but i think one thing that's interesting as we looking going forward, what happened in q2 and what could happen in the second half of the year is one analyst, one morgan stanley analyst said they're less concerned about the loss of shows like netflix and "the office" and more concerned about making sure they find new hits like "stranger things." the model seems to be shifting and subscriber additions are really all about having those big flagship shows that can bring people on to the platform. >> paul, is that part of the risk when you talk about netflix, losing some of the

netflix latest episode runs into trouble. price rises bite as the streaming giant adds less new customers than expected. live from london, that's our top story on thursday 18th july. netflix is under pressure from growing competition and the huge cost of making original programmes, but will global growth be able to offset a fall in american customers? also in the programme: a first interest rate cut in three years for south korea — the surprise move comes amid growing trade tensions with japan. investors wary about some of those delays to trade deals around the world. reviving a classic — we'll speak to the man who's brought whisky and gin distilling back to an area of scotland that had been running dry for decades. we wa nt we want to know have price rises put you off netflix or are they are too many streaming options? let us know — just use #bbcbizlive hello and welcome to business live. we start with the streaming service netflix. its shares have fallen sharply — down almost 12% in after—hours trading — after t

strong netflix numbers? it's going to be the providers of content. disney has its own content so they are going to have an edge in that viewpoint but also, the other movie producers out there, this is the golden time for them. if you have a tv show idea, this is the time to come up with it, because they are going to need a lot of space. the more people you have in this space, the more content you are going to have to produce and they are going to be the companies that are really going the benefit from this, you know, from this war that we are seeing in the streaming space. liz: i know you said producers, but boy, the writers who are watching right now, they are saying oh, no, you're killing us. it's the writers who come up with the ideas. >> there you go. the little people out there. they are the ones we have to remember. liz: let me tell you, the writers are now the big people. great to see you. we are keeping an eye on netflix, down about three quarters of a percent right now. but not just netflix coming o

and netflix having a tough week. and that's got an impact on psychology and on the construction of the big tech etfs, et cetera. there's a lot of flow-through with that story. >> how important is it to our -- >> i think it will always be important psychologically, where it's the faang names considered to be tech or -- at the end of the day they're very big caps. people look at it for sentiment, what the biggest, most well-run -- 25% of the it s&p, and it's the reason we are where we are, the big value stocks have not done much a lot of people if the momentum will continue, you need the leadership i don't think that's controversial. >> you know, your story is one of the important stories, which is csx down 10%. >> a wild move >> trying to understand what's going on you talked to the ceo earlier, but not a lot of answers really. >> yeah. i think what they had said is what we have been seeing, a softening in the industrial part of the economy manufacturing have been softer, some of the commodities, the intermodal side o

netflix had 130,000 fewer u.s. subscribers at the end of the second quarter versus the first quarter. that is the first time that's happened since 2011 after netflix launched a new pricing model that was widely rejected by customers globally netflix added 2.7 million subscribers, far less than the 5 million forecast. on the conference call the company attributed lower growth in part to its program lineup during the quarter >> this is one where we forecasted high. there was no one thing if i think about three years ago, we were also light. we never really were confident of the explanation then we were 2 billion in quarterly revenue. now we're going 5 billion. it's easy to overinterpret the quarter membership ads >> the slowdown comes as competition is set to ramp up in the coming months. disney, apple, warner media and comcast nbc universal are launching rival services sparking what some are calling the streaming wars they're also taking their content from netflix including "friends" and "the office. the company is

think netflix is crowded? >> yes, it is crowded. people underweight in ibm had to chase it, people underweight in disney had to chase it because they were waiting for it to break out on the range and it is holding. >> let's bring in "fast money" friend gene munster for more reaction what do you make of this big miss how would you explain 2.7 million versus 5 expected? >> they probably pulled 1.4 million from the december quarter but it capture the significance of the miss. >> they should have accounted for it in their miss, they should have said four instead of five. >> i have listened to your commentary i don't like to pile on when things are negative, but i want to try to have a most clear view of what is going on and what has happened even if you account for a pull forward they didn't give proper guidance for, this is negative this -- i think we will look back at this quarter as one of the pivotal moments in the netflix story. i think what the key insight here is that the content line-up that they had in th

not good news for netflix on. i think it's much worse news for everybody else >> does that mean that everybody was chasing netflix. this is an illusory experiment and everybody is racing in this same game trying to spend an enormous amount of money, because they've seen the success of netflix >> if you take what reed hasteing says, take price into your programing. you say, okay, well, that means there the a segment here that's going to be price resistant. well, if you want to be service two, service three, service four, there is obviously going to be a lot more head winds there than people may have originally thought if it's about programing, netflix is spending $15 billion on original programing dwarfing what everybody else is spending combined if it is about programing, everybody else will have a tougher time with introducing new hits all the time than netflix likely is. so i think while this certainly shows that we are dealing with some segments of the consumer streaming audience, that is going to be resistant

has, number one. >> they're not trying to be netflix, and they don't have to be netflix to win, right >> they don't. but they also don't have the breadth of menu to appeal to so many different people. >> right they have legacy content, and the legacy content is very familiar to the families in this country and it is something that people want. so i agree with you. >> absolutely. >> they don't have the breadth, but i think there's more value in their content versus what netflix is curating. >> but who is writing the check? is the 8-year old watching "beauty and the beast" writing the check each month. >> you have children you understand with junior comes up and says, i want to watch whatever it is on disney, you're going to write that $8 check, right? >> no, i'm not going to tell him, no, look, you should watch "lou black" instead. >> exactly. >> mel, you want to draw a parallel, or maybe you did, joe, with quickster i don't think that's the right one. you may want to find this provocative. i'm not doing it to be provocative. some people may be angry when i say this. >> i can't wait to

have been staples at netflix. that is "the office" and also friends friend. that's gone. they -- "friends." seeing major competition with disney plus, universal comcast coming to battle them. disney plus with marvel. they have "star wars" under their belt. those are some big swingers. melissa: i think we are supposed to go to deirdre real quick with more headlines. third quarter global streaming paid in net additions they see seven million. that is the number i was trying to get before. give us more color. >> that is a reason why you will hear the bulls talk about netflix going forward, being a strong play, best in class in the streaming category. i want to explain a little bit some pressure we're seeing on the stock in after-hours. this is about additional international subscribers ads. we're pretty saturated. analysts were expecting 4.7 million additions internationally. netflix posted for the second quarter 2.8 million. that is making the stock sink like a stone right now. i also want to highlight as far as dom

the entire story has been netflix, netflix, netflix. that is not changing any time soon we think in our forecasting we think netflix is going to stay in the number one position until 2025, perhaps even later they have achieved such massive scale already. it's going to take disney a couple of years to reach the tens of millions of subscribers domestically to reach 150 million subscribers will take a long time. apple has a huge captive market because of its hardware penetration, but they are sort of -- apple is going for an amazon model, doing a bit of everything not just video yeah netflix's position is not exactly challenged just yet. in the 2020s that will look different. >> netflix is seeming to insist they're not going to offer ads on their platform. how much of this advertising strategy is playing out? because we know a lot of competitors willoffer ads in commercials, is this something netflix can stick with if they want to be competitive >> they even went further, they said any reports suggesting that we will release sort of an ad-

you would think that netflix... there are a lot of things netflix is doing, which an organisation like the bbc isn't able to do at the moment, and the momentum seems to be with you rather than with the old way of distributing stuff through linear channels. that is a problem for old school organisations, isn't it? well, it's the coupling... when public funding and regulations come together, so in this way, you're able to innovate outside of that regulatory system, but i do think that even in that world, the innovation that comes out of something like the iplayer was way ahead of its time, and they way that people adapted to the way that they watch and all those things. so it was just a matter of how these programmes are available, relative to the business models with producers. the ideas, how you make sure these platforms and networks all remain relevant, and they way to do that is to give the consumers what they want first, and then figure out the business model after. where going the other way around i think ends u

buying opportunity for netflix or the broader fang names that have suffered a little bit in view of netflix's numbers? >> the issue when you think about fang, they're described as secular growth if you want to be secular growth you have to grow regardless of the environment. some subscriber models have proven they've been more secular and less cyclical. i do like tech broadly but i would like to have a little more cyclical exposure, value biased. >> jack, we'll leave it there. thanks for joining us. >> thank you. >> we're counting down to another big afternoon of earnings microsoft gearing up for their numbers. chewy since going public, we'll preview the key things to watch. >> plus the debt ceiling debate taking center stage. we have a look at how stocks continue to perform. check on the data tracker, well above estimates with a reading of 21.48 rising to 216,000, a match with ctions we'll be right back. the hamstern their cage. content on their endless quest, to nowhere. but perhaps this year, a more exhilarating endeavor awaits. defy the laws of human nature,at the summer of audi sales eve

this is all netflix, folks that's very obvious. retail's got a problem all the auto retailers are down. advanced auto. genuine parts gave disappointing commentary it was below expectations. the auto companies are having a problem all over the world that's certainly a major issue here if you're raising your guidance, street likes that. they want to hear positive comments about the second half of the year. united health generally did. that was an exception here it did have good commentary, but it's trading down. phillip morris, ebay, novarti, honeywell also beat, raised the low ends of their full-year guidance generally improving guidance in the second half of the year, generally stock goes up. very complicated picture when looking at the big global industrials. they're starting to report i love these companies even the small ones give you interesting ideas. ppg is a big one, dover, watsco, big air-conditioning company, honeywell, i mentioned was positive ppg, a great little company to watch. they make industrial coatings all over th

netflix originals. ten of the top most watched shows are netflix originals. because of the tonnage that friends or the office has, yes, it's a popular show. there are three things that drive netflix. one is new sub, two is low return and the price value relationship "friends" is not the key to any of that. it's the original production that drives all of that. >> if it's a yawn for netflix, is it not a particular advantage for hbo max trying to charge a comparable comparable monthly subscription fee to netflix? >> at&t warner has to manage the decline of the traditional business while trying to build a new streaming business and this hurts on the traditional side they're obviously giving up a lot of license fees. $100 million a year just on this show they have some melting ice cube problems like directv which is something that they have to balance in the midst of trying to build a new streaming world i think it's something that shows some commitment to building some streaming. i think it enhances it in some ways but look, 10,000 hours of programming on streami

it's interesting, you mention the content but of course netflix is $0011 content but of course netflix is soon to lose some of its most below shows, things like the friends back catalogue will be moved to another platform and. yeah, and all of this isa sign platform and. yeah, and all of this is a sign of the competition. when you first enter and you are that really new breakthrough honeymoon period, you haven't really got anybody competing with you. now, of course, there's competition out there and it's really showing, particularly in the virtual space. when you think about physical goods, you've got really high barriers to entry because you've got to set up distribution systems around the world. this is all virtual. this is all streaming. this is over the internet, so in a way the barriers to entry are much lower than they would be in other sectors and it's the sign of the world today. and interestingly more competitors $0011 and interestingly more competitors soon to launch, but we'll talk more about that in the news review later on. inge, for now, thanks very much. —— inga. nea

netflix is leading the chargelj inching towards equality. netflix is leading the charge. i think you to branch out. make some new friends. you never know what could happen. branch out. make some new friends. you never know what could happenm the last year, netflix has produced two prominent rom comms, both produced during blockbuster season that feature asian—american salad. last yea r‘s to that feature asian—american salad. last year's to all the boys i loved before. and always be my maybe. the latter set in san francisco. the fa ct latter set in san francisco. the fact that they are all asian isn't necessarily the selling point or something that they have to keep hammering home. like does not was specifically they made this movie, just happens to the fact. which the way it should be. it should be normalised. for many viewers, netflix's disruption of the viewing season netflix's disruption of the viewing seasonis netflix's disruption of the viewing season is overdue. several movies flopped badly this season. but only time will tell if they are the future of blockbu

now netflix set to report earnings after the bell. how about company will grapple with losing some of its most popular shows and movies to traditional media companies dropping into the streaming game. and elon musk wants to merge human brains with computers by next year. we will have the details on his latest venture. startedet's get you with a quick check of the markets. the s&p 500 falling for a second consecutive session, industrials leading the decline lower. it is now below the 3000 level. of earningsed bag and lingering trade tensions between the u.s. and china that are dampening sentiment. the dow was also down .2%. the dow transportation average is also seeking to five-month lows, and we follow that index to gauge economic performance around the world. we will get another snapshot in about half an hour when we get the fed beige book. in the meantime, we are getting some numbers out of europe with car sales again dropping. in fact, the biggest drop of the year, when you take up a look -- take a look at the month of june. we cou

netflix. youtube and netflixlj netflix more than anything. netflix. youtube and netflix. ijust pay for netflix, now tv, though subscriptions are the kind of things that have got a bit more interesting stuff tha n that have got a bit more interesting stuff than just what is on regular channels. and most of this will be television we have already seen. so what does this offer? there are questions for this new bbc/ itv partnership. bbc content singer that we have already paid for it with the licence fee. why should we pay for a second time? well, if you go back a decade, we were all buying dvds and it was annoying because you couldn't a lwa ys it was annoying because you couldn't always get the dvd of the programme you wanted. this is exactly that, but brought bang up—to—date. you wanted. this is exactly that, but brought bang up-to-date. so many of us have already got streaming services, netflix and onwards. why do you think they will fork out £5.99 for yet another do you think they will fork out £5. 99 for yet another one? do you think they will fork out £5.99 for y

i do not think anyone is taking subs away from netflix. i just think they will compete for wallet share, and new subs are going to choose the new programs if they have smoke is a not very much money. they will choose netflix that they had a lot of money, and they will choose is the amount that they have even more money. i think it is divided conquer. i think netflix wins overall the subscriber war, but i do not think they win the cash flow war. emily: all right. shares trading at $362 of these, 13%.hey are down michael packer of wedbush, lucas shaw, thank you. hours orsing after revenue dropped for the fourth consecutive quarter, cloud revenue was up more than 3%. remember, iv and is billion-dollar acquisition of it hat last week and hopes will compete with cloud leaders like amazon and microsoft. ,oming up, all eyes on facebook and david marcus once again as he faces regulators once again on capitol hill. and if you like bloomberg news, check us out on the radio, check us out on the app, on bloomberg.com, and listen to us on sirius xm. th

one chart that could, maybe, signal more gains ahead we will show it to you because we're tv plus, netflix on deck. their results tomorrow media mogul tom rogers will be here to tell you what the key is going forward for their streaming success. >>> but we begin with planes, trains and automobiles, the transport surging back today trucker j.b. hunt crushing earnings the airlines soaring that group up, 5% in just the past week so is the classic dow theory, the idea the transports are going to lead the market back in vogue? it's been around 100 or so years. pete najarian, is that move a huge move for airlines, railroads, truckers, mean that it is all all clear for the overall market >> i don't think it is that easy i don't think the markets are ever that easy everybody loves to say that. >> is that theory dead >> i would say this, it is a great sign the airlines, we watched them produce and produce and produce and people still don't want to seem to own a lot of the various airlines when i looked at delta numbers last week and it almost went by and nobody talked about it and yet they crushed

i believe netflix, between the movies, the shows, you can get a whole month of netflix for less than the cost of a movie ticket. throw in the candy, forget about it i figure people wouldn't blanch at a price increase. yet that's exactly what happened here we thought netflix was the kind of company that could raise prices without impunity. if that's the case we need to take it you out of the bin of consistency and put it in episodic heaven forbid, episode i cal i have no idea what i pay for netflix. i have my own funny picture of when they ask me who is watching a 235few years ago in preparatin for interviewing the ceo, i called at 2:30 to ask a question i wanted to know my best bet for a movie from stalin to go to berlin to end the war in the east watch a movie directed by stalin wasn't bad i will gladly double what i'm currently paying for netflix, whatever the heck it is. turns out -- i'm not representative of the broader customer base. in other words, i know we're thinking netflix is like costco or spotify or apple. all the services people pay for without thinking about it. if it'

netflix reported they lost subscribers in the u.s. for first time in a decade instead of growing the subscriber base. ashley: right. susan: that is a big problem. that is problem of compelling content. one day after the disappointing report card, we get news possibly leaked to the media. some are skeptical. it is a content game. you need to draw eyeballs. eddie murphy does just that. ashley: i need to work on my standup routine. susan: that is a lot of money indeed. ashley: thank you, susan. iran is denying president trump's claim that a u.s. warship destroyed an iranian drone over the strait of hormuz.

netflix is another one. it feels like people are getting a little nervous, that they are cutting back, even though job growth is fine. i think we are at a tipping point, and whether it turns out dal wass right or -- was right or whether bank of america was right, i don't know. we will have to wait and see. manus: i think everybody has to sell something. that is the whole point. you know what i am shocked about? i am shocked that our analysts were shocked that korea cut rates. take a look. where you shocked? this is pretty much a global phenomenon, isn't it? eddie: everybody's getting in on it. they've -- there are very few central banks that aren't cutting. south africa will do the same thing. nejra: thank you so much for joining us. bloomberg mliv editor, eddie van der walkt. up in a -- walt. up next, danske bank reporting earnings. how are they contending with negative interest rates? this is bloomberg. ♪ >> good morning. i am their rich heritage -- nej ra. >> this is bloomberg daybreak: asia. daybreak.

coming up, netflix versus its rivals. we will look at the streaming giants future with jon klein, former cnn u.s. president. that is next. this is bloomberg. ♪ viviana: this is "bloomberg daybreak." secretary general live from the g7. here's your bloomberg business flash. today shares of swatch are higher. the swiss watchmaker is cracking down on gray market distributors cutting into swatches pricing power. the company also saw revenue from hong kong fall 10%. political protests have said tourists -- have sent tourists away. makerch luxury goods climbed to a record. estimated at a little under $108 billion. about $200 million ahead of don't gates. a group -- ahead of bill gates. the unit buys interest from investors in private equity funds who want to cash out their long-term holdings. the market -- investors want steady cash flows with less risk than traditional buyout funds. that is your bloomberg business flash. david: a lot of money out there. alix: basically you just raised a lot of money to buy out other investors

that is great for netflix. when you talk about other services like disney, hbo and others, they don't hit until the end of this year or early next year. when you talk about netflix and their 60 million u.s. subscribers, you are comparing them to other subscriptions that have zero subscribers. emily: they currently have zero, but which do you believe will pose the biggest threat to netflix? eric: i think disney ultimately will pose the biggest threat. disney currently own hulu, which is the number three largest streaming service in the u.s., when you take netflix as number one and amazon prime as number two. disney already has a lot of experience in this field. second, they are price competitive and household names. when you compare disney plus, they're pricing at around seven dollars, and rumors of a bundle hulu currently has 30 million u.s. subscribers. it is a competitive package and they should be able to scale up quickly. emily: thanks so much for stopping by. eric: thank you. emily: customer data is at the

down, as yous are would expect, with a big drop in netflix in overnight trading. netflix said u.s. users actually shrunk, shocking the market. dragging on and adding to an already bad earnings picture. the u.s. dollar is down. 1193.55 and other currencies, especially the yen, are getting momentum. coming up, we speak to the chief officer of a lecture looks -- electrolux. there are a slew of earnings coming out and it is moving the needle. let's get some bloomberg first word news. >> the u.s. and china are struggling to find a path forward in trade talks. there has been slow progress on key initial demands. donald trump has complained china is not buying the large amounts of american farm goods he claims president xi jinping promised to purchase. the u.s. is not improve its treatment of huawei, a key demand. a key deal between the u.s. and u.k. will not be forged quickly, according to boris johnson. he predicts discussions will be quote. tough and robust he said. president trump wants more details about a cloud computing contract the pentagon is set to award amazon or microsoft. the

and even netflix has ended aup choiring projects. so i think the future is very much an open competitive marketplace and smart streamers like netflix are going to come in and bid and try to be nimble. >> and the content is only going to go up like, so we saw "the office" nbc universal is going to keep it for themselves for their streaming service. they actually, it went to auction, it on, netflix lost o that so even for the things you own, you still have to price them there's profit parpss, they need their end on it. it's going to be expensive even if it is sitting in your library to bring it to streaming it's only going to go higher >> and yet everyone is piling into netflix guys, thanks will either of you be watching "stranger things"? >> i already watched it. i binged the whole thing on the fourth >> benefitting from the consumer side, clearly. have a grade weekend, ed lee and stephan. >>> coming up, not even a trade war with china can derail the tech sector. three predictions for tech are coming up. >>> but first should pbr chang

this quarter netflix is expected to add some 5 million subscribers. the vast majority of those are expected to come from overseas then the question is how many subscribers netflix will forecast it'll add in q3 the number analysts are looking for there is 6.3 million the reason that subscriber number is so important is it will really speak to how well netflix's investment in original content is paying off. and also whether or not their growth is really sustainable >> let's talk a little bit more about that, sarah. the numbers you're looking for really are growth numbers but especially abroad. that's a big deal and it's one that investors have been watching really closely. >> it's a huge deal because it's the only place they can grow so all growth opportunities are going to come from abroad. they're at about 150 million subscribers now. they think they can get to a point where they can cancel out that debt they need to get to about 300 million. so they're about halfway there >> it's a pretty high bar to jump street's not too much ahead of where the comp

i do not think anyone is taking subs away from netflix. i just think they will compete for wallet share, and new subs are going to choose the new programs if they have small kids and not very much money. they will choose netflix that they had a lot of money, and they will choose hbo max if they have even more money. i think it is divide and conquer. i think netflix wins overall the subscriber war, but i do not think they win the cash flow war. emily: all right. shares trading at $362 of these, but they are down 13%. michael packer of wedbush, lucas shaw, thank you. shares of ibm rising after hours this after topping estimates in second quarter results. cloud revenue was up more than 3%. remember, ibm closed its acquisition of red hat last week , a move it hopes it will compete with cloud leaders like amazon and microsoft. coming up, all eyes on facebook, and david marcus once again as networkss the social cryptocurrency on capitol hill. and if you like bloomberg news, check us out on the radio, check us out on the app, on bloomberg.com, an

netflix until today, at least, hasn't flinched. i think that's telling you something into earnings. though the smart thing to do is take money off the table, i do think that things rally post earnings. >> competition and the announcements about shows they'll bring back, services and pricing. those can be catalysts for the other ones >> they can be i think that's one of the reasons why this stock is consolidate the way it has over the last few months, money flowed into the other ones they're not going get massive results anytime soon they told us, they gave us long-term guidance for their targets on subscriber and profitability. but in the meantime, netflix may have a bit of a runway, they put those price increases earlier in the year they have a lot of original content and the way i see it, that's the only reason why you're in netflix, the original content, we know disney is taking away, we any a lot of the stuff is back to warner and all that sort of stuff longer term, this is a more challenge story. in the meantime, it may have -

that is great for netflix. when you talk about other services like disney plus, hbo max, and others, they don't hit until the end of this year or early next year. when you talk about netflix and their 60 million u.s. subscribers, you are comparing them to other subscriptions that have zero subscribers. emily: they currently have zero, but which of those do you believe will pose the biggest threat to netflix? once they are launched? eric: i think disney ultimately will pose the biggest threat by far. disney, they currently own hulu, which is the number three largest streaming service in the u.s., when you take netflix as number one and amazon prime as number two. so disney already has a lot of experience in this field. second, they are price competitive, and they are already a household name. when you compare disney plus, they're pricing at around seven dollars, and rumors of a bundle with hulu as well. hulu currently has 30 million u.s. subscribers. that is a very competitive package and they should be able to

coming up, netflix and no chill. the streaming company reports underwhelming second-quarter earnings, losing subscribers for the u.s. for the first time since 2011. what this means as the competition turns up the volume. and if you like bloomberg news, check us out on the radio, on the bloomberg app, and on sirius xm. this is bloomberg. ♪ emily: topping earnings news this week, netflix reported a surprise loss of u.s. customers for the second quarter. the streaming giant's earnings renewed concerns about growth prospects at a time of looming competition. netflix says it lost 130,000 customers as a result of higher prices and a weak slate of shows. it signed up 2.7 million global subscribers in the period, also missing projections. we broke down the results wednesday with analyst michael pachter and lucas shaw. michael: i hate to bore lucas because he actually tweeted he is tired of talking about this. i think that price increases probably drove the subscriber loss of domestically. and i think that they are probably

this is the sweet spot in which netflix operates. netflix is also discovering opportunities in other areas traditional hollywood has abandoned. while the movement for stronger representation for marginalised groups continues to grow, the major studios are only inching towards equality. netflix is leading the charge. i think you should branch out. make some new friends. nope. you never know what could happen. in the last year, netflix has produced two prominent rom—coms, both released during blockbuster season that feature asian—american talent. last year's to all the boys i've loved before and now always be my maybe. the latter is set in a city, san francisco, whose vibrant asian population has traditionally been left out of hollywood's offerings. the fact that they're all asian isn't necessarily the selling point or something that they have to keep hammering home. like that's not why specifically they made this movie, just happens to the fact, which is how it should be. it should be normalised. for many viewers, netflix's disrup

netflix, does that offer a lot more opportunity or, at least, it seems like it does. does it? randall: well, yeah, i think so. i think for us it was kind of a bit of a no-brainer to go to netflix because, ultimately, we wanted our movie to be made and we then wanted our movie to be seen. robert: yeah, i guess that's what i meant was, was it like, in the old days, would you have been able to make this movie, like a theatrical movie? ali: yeah, i don't-- i think it's a lot because also the timing was right in terms of, you know, randall has a lot of cachet from his--you look at his imdb page and you'll be scrolling for, liyo and then nahnatchka had just, i mean, you know, she's very established too and so i think, like, all of that lining up more than people's attitudes towards asian americans was probably the bigger deal. but to get to that point where you can build that amount of cachet takes a long time, you know? we're not in our 20s. nahnatchka: but also netflix, i will say that, like, the whole process, they were onboard for exactly the movie that we wanted to make. you kn

take a look at shares of netflix. down double digits, 10% in the after-hours in reaction to the company's second quarter results. just out in the past hour. we have the details and the numbers you need to know ahead of tomorrow's open. coming up. >>> today, we tell the pharmaceutical industry their greed is going to end, that under medicare for all, there will be a cap on what people will have to pay for medicine and that we are going to significantly and underline the word significantly, lower prescription drug costs in america. we are tired of getting ripped off. susan: happening right now, it's a democratic duel. just days after 2020 frontrunner joe biden debuted his ambitious $750 billion health care plan, which opposes medicare for all, bernie sanders firing back with the defense of his signature proposal in a major address that just wrapped up moments ago. wait until you hear how much his plan will cost you. this is "bulls & bears." joining me today, liz peek, kristina partsinevelos, jack brewer and carol ross i

so not a perfect overlap with netflix. doesn't have much in the way of deep local international content the way netflix does they've got a lot of work to do in terms of optimizing their mobile experience for a lot of these international markets. so we're on the front end of increasing competition some at lower price points, some higher, as you saw with warner, for example. but again, we think this is going to be a very manageable and modest headwind for the incremental subscriber for netflix. >> matthew, thank you for your time matthew thornton of suntrust. >> thank you. >>> amazon's two-day prime day is over. and the company says it was even bigger for them than black friday courtney reagan joins us with the numbers you need to know hi, court. >> hi, tyler if we only knew how big black friday was for amazon, this could make this equation easier. but there is a lot of things we could say. let's stick with the three big ones first, amazon says it sold more than 175 million items during the 48-hour event, topping its black f

coming up, netflix and no chill. the company reports underwhelming second-quarter earnings, losing subscribers in the u.s. for the first time since 2011. what this means as the competition turns up the volume. and if you like bloomberg news, check us out on the radio, on the bloomberg app, and on sirius xm. this is bloomberg. ♪ emily: netflix reported a surprise loss of u.s. customers for the second quarter. the earnings renewed concerns about growth prospects at a time of looming competition. netflix lost 130,000 customers in the u.s. as a result of higher prices and a weak slate of shows. it signed up 2.7 million subscribers globally, also missing projections. we break down the results wednesday. >> i hate to bore lucas, because he actually tweeted he is tired of talking about this. i think price increases probably drove subscriber loss domestically. i think they are probably bumping up against the ceiling on what they can charge and continue to grow. i personally believe they will keep 80% of the domestic subscr

netflix shares are sinking today. following a big miss for global paid subscriber growth in the second quarter but, netflix not blaming its competition for fewer people signing up instead, ceo reed hastings says its content slate simply was not strong enough. seema mody, content is still king, but do you buy it? what's the lack of good shows or competition? >> i think it's competition when you look overseas. there are a growing number of local competitors, streaming players offering localized content in countries like indonesia, thailand and india at 50% of a discount to netflix why would you buy netflix if you are sitting in india and want access to "game of thrones" or other great shows? >> i brought this to you because every time i look at your instagram, you're in another country. literally. i'm in london, india >> she's our travel reporter >> we have a travel reporter >> it's seema mody >> oh, my gosh we've been here too long what are people talking about? are they talking about netflix is it on the tongue like i

netflix, though, is in a niche. it is not representative of what will happen with apple, certainly not with anything happening in semiconductors with respect to trade. there are many different issues facing technology right now and i think that netflix offers something, but not a really big read through for the broader tech sector. romaine: when you think about this idea that these large cap stocks are what got us here, there has been speculation about how small caps play into this. we have not seen them really participate in the rally, at least on a relative basis with the rest of the market, is that something that is attractive or do you wait this cycle out? ann: i think it is something investors should pay attention to. in the last 20 years, there has only been four times where the small-cap stocks or russell 2000 has led by more than 10%, and we are in that cycle right now where the russell 2000 is lagging by more than 30%. in those prior events, that gap has closed rather quickly, actually. so this one hasbro m

the noose is tightening for netflix. here ineggy, washington, when it comes to --flix and how big a problem to netflix, how big a problem is the streaming we are seeing from the likes of disney and hbo? peggy: we are seeing apple coming out with a streaming service, disney, and others like at&t and comcast. the competition is mounting, and they are showing some weakness internationally, which is where we are seeing a lot of companies really do well. if that is starting to struggle, they could be in for the long haul. alix: this also highlights that some companies are having a hard time passing through priced increases. what have you noticed so far? reporter: it is a mixed bag. you are seeing around the world luxury companies are feeling certain macro events. industrial space took a massive hit. i think they were down the most since 2008. we will see a lot of terrorist -- a lot of tariff concern and economic outlook concern. if you look at the investments they are having to make in technology, if you look at the week cons

coming up, netflix and no chill. reportsany underwhelming second-quarter earnings, losing subscribers for the first time since 2011. what this means as the competition turns up the volume. and if you like bloomberg news, check us out on the radio, on the bloomberg cap, and on sirius xm. this is bloomberg. ♪ emily: netflix reported a surprise loss of u.s. customers for the second quarter. the earnings renewed concerns about growth prospects at a time of looming competition. netflix lost 130,000 customers as a result of higher prices and a weak slate of shows. million global subscribers, also missing projections. hate to bore lucas because he actually tweeted he is tired i thinkng about this, price increases probably drove the loss of domestically. they are probably bumping up against the ceiling on what they can charge and continue to grow. personally believe they will keep 80% of the domestic subscribers, but the last 10 million subscribers are probably middle income households and they know what prices go up a cou

coming up, netflix and no chill. the company reports underwhelming second-quarter earnings, losing subscribers for the u.s. for the first time since 2011. what this means as the competition turns up the volume. and if you like bloomberg news, check us out on the radio, on the bloomberg app, and on sirius xm. this is bloomberg. ♪ emily: netflix reported a surprise loss of u.s. customers for the second quarter. the earnings renewed concerns about growth prospects at a time of looming competition. netflix lost 130,000 customers as a result of higher prices and a weak slate of shows. it signed up 2.7 million global subscribers, also missing projections. we broke down the results wednesday. >> i hate to bore lucas because he actually tweeted he is tired of talking about this. i think price increases probably drove the subscriber loss of domestically. i think they are probably bumping up against the ceiling on what they can charge and continue to grow. i personally believe they will keep 80% of their domestic subscribers

. >> let's get right to it because netflix is on deck for earnings next week. most of those gains came in january, but the stock is still 10% from its all-time high the options market has made a 6% move in either direction dan thinks new highs are in play dan? >> but not right now and i'll tell you why it's not a trade stock it's not one that has adverse effects on a strong dollar but it is a stock that has unusual sentiment into it. there are a loft of investors that have concerns in this they started out the week putting out a tweet talking about how many people in the first four days of "stranger things" season 3, i think 40 million people watched it in the first four days. that's the six-day chart, okay, since basically this news has been out there and it closed dead in the lows of the week, which is kind of odd. almost down 2% the stock has had a big run over the last month and a half or so, kind of keeping pace with the nasdaq or so so when you think about that 6.5% after earnings next week, that's shy of the amount it's moved on average over four quarter

coming up, netflix and no chill. the company reports underwhelming second-quarter earnings, losing subscribers for the first time since 2011. what this means as the competition turns up the volume. and if you like bloomberg news, check us out on the radio, on the bloomberg cap, and on sirius xm. this is bloomberg. ♪ emily: netflix reported a surprise loss of u.s. customers for the second quarter. the earnings renewed concerns about growth prospects at a time of looming competition. netflix lost 130,000 customers as a result of higher prices and a weak slate of shows. it signed 2.7 million global subscribers, also missing projections. >> i hate to bore lucas because he actually tweeted he is tired of talking about this, i think price increases probably drove he loss of domestically. i think they are probably bumping up against the ceiling on what they can charge and continue to grow. i personally believe they will keep 80% of the domestic subscribers, but the last 10 million subscribers are probably middle income ho

netflix. we wouldn't have enough time relative to the second it takes on netflix technology is hard and netflix, that's all they do i think there is something to be said for the only thing netflix does is streaming video. all the other companies we can talk about they do many other things. i think that's a distraction or makes it hard to focus purely on streaming. look, it certainly argues, you think about sun valley, it argues, all of these companies need to get bigger i heard david on here yesterday, you asked him if he was for sale he said no way discovery is for sale. there may not be a buyer because companies like comcast and disney and via com, cbs haven't merged yet there will be consolidation. >> i was thinking 16 billion or so that's a big number. you'd have to take 30, wouldn't you? >> comcast is a pretty big company. disney is a big company, via koym and cbs. >> wouldn't you have to take 35 oring? >> the headwinds are not going o'way, i call the next five years the let in flicks era

coming up, netflix and no chill. the company reports underwhelming second-quarter earnings, losing subscribers for the first time since 2011. what this means as the competition turns up the volume. and if you like bloomberg news, check us out on the radio, on the bloomberg cap, and on sirius xm. this is bloomberg. ♪ ♪ emily: netflix reported a surprise loss of u.s. customers for the second quarter. the earnings renewed concerns about growth prospects at a time of looming competition. netflix lost 130,000 customers as a result of higher prices and a weak slate of shows. it signed 2.7 million global subscribers, also missing projections. >> i hate to bore lucas because he actually tweeted he is tired of talking about this, i think price increases probably drove the loss of domestically. i think they are probably bumping up against the ceiling on what they can charge and continue to grow. i personally believe they will keep 80% of the domestic subscribers, but the last 10 million subscribers are probably middle inco

so as netflix's biggest rival strikes back, can it keep the momentum going, keith? >> i think they can because that mode is that big this is not something they haven't been focused on for a long time. they've focused on content, not just here but internationally. we talked about the international expansion they've gone through, that has taken over they've done an unbelievable job there. i think as it gets bigger, mel, it makes it that much more difficult. there will be content they're going to lose obviously over time. we know disney and everyone else is moving around and shifting thingsaround, but netflix has done a great job i talked to my friend that live in hollywood who talked about, hey, look, we love working to netflix, for amazon, for these various, so the competition is there. but if they can develop that content at netflix, that's going to be the winner for them. >> i mean the issue here is whether or not the stars will actually turn away from the service because it is all about subscriber numbers at the end of the day, right especially in the u.s. where i