'Bloomberg Technology' Full Show (09/16/2022)
from the heart of where innovation, money and power collide in Silicon Valley and beyond, this is
Bloomberg Tech with Emily Chang Ed. I'm Emily Chang in San Francisco and this is
Bloomberg Tech. The next hour was a bad week for tech stocks. That kept getting worse from big names to little ones. It was the worst five days for the NASDAQ since January as investors wonder what the Fed will do next. gears up for a public debut and bad news for Star Wars fans Disney pulled the upcoming Rogue Squadron movie from its 2023 release schedule how this will affect theaters globally this hour let's get to all of that in a bit first Let's get a look at the markets and Ludlow here with that we get to Friday Ed but just markets and tech stocks in particular a bad week that got worse yeah I mean we did a late rally I guess on the NASDAQ 100 to add to some of those losses closing five ten to one percent but like you said this was the worst week for the NASDAQ 100 since January and it really was Mega caps you talked about big and small but it was the Mega caps that dragged us down the brightest spot low that semiconductor is, it's actually gaining five ten to one percent on this kind of advance that we've seen in yields, particularly on the short end of the curve, t Taking a little breather but pushing the continued volatility in cryptocurrency and digital assets a little further, of course, all eyes on the FED next week.
I really want to pay attention to this chart in the
Bloomberg terminal. We talk about this being the worst week for the NASDAQ 100 since January, but it's actually the ninth time this year that the NASDAQ 100 has fallen four percent or more and you have to remember the context of the week that was just the Tuesday when we got the CPI print, we had the biggest drop in the NASDAQ 100 in over two years that we had. Some optimism because we got the early Apple pre-order data which drove its ROL index up and with that context in mind this is still volatility it looks like as of the end of this week we have more questions than answers. at that key federal meeting next Wednesday and then you factor in that FedEx the Ripple that that new shipment through the market and the real concerns around global growth there's a stock driver that I'm going to focus on this Friday because it's a big story that may have been next in the heavy news cycle and that is Uber Uber stopping buying higher at one point since June during the Friday session, although it also pared some of its losses on Thursday.
We had a revelation from the company after a
Bloomberg scoop that a hacker was able to access an employee slack channel and also some information as part of the company's Amazon and Google-hosted cloud infrastructure and market actually paid attention to that in the context of uber too, okay ed, we're going to talk a little bit more about that story now, we'll get back to you later on the
show. I'm a hacker, that's the lazy message Uber employees received from an unknown source Thursday night. prompting the company to shut down its internal slack messaging while it investigates a massive cyber breach, according to the New York Times, my next guest, Casey Ellis, is the founder and CTO of bug crowd a bug Bounty, a company that specializes in identifying bugs or vulnerabilities in other companies' software systems join us now to break it all down to make it sound pretty serious Casey I know there's a real fire drill going on inside Uber right now how did this happen? at the time, but this was one of the bad guys that we tried to stop.
Essentially, what we know at this point is that there was a text message or possibly a multi-factor push message notification. Basically, a spam campaign was carried out against people with elevated privileges within Uber, that spam campaign was successful, and because of that success, the attacker gained access to the credentials that got them into the network once they they're inside. able to, uh, move around, you know, find additional information to scale their privilege and do some of the things that cause, you know some of the weirdness that was on the site, for example, that uh, it started breaking yesterday, let's talk about the weirdness my sources say there are unseemly images all over their internal networks, other than wreaking havoc, what kind of valuable information could they have gotten their hands on? using slack and so forth, um to make it look from the outside in the sense that uh you know nothing is necessarily off the table at this point and obviously there's still a lot or If incident response goes down like Uber is having a very busy Friday and most likely a very busy weekend, just being able to reverse this and find out exactly what happened so they can take the appropriate response actions and obviously alert people. um like necessary too, but you know as of right now they're saying you know things like private user data hasn't been accessed etc so it's not necessarily an assumption that the attack is gone and gone has everything and they used all of that but obviously they've had a lot more access than they should and when something like that happens, especially with some of the trolling guys that seemed to come and go on the back of the hack within the uh within the corporate environment of uber there's a lot of work to be done to figure out what exactly happened so it can be fixed uh you know as you say Uber says they have no evidence that the incident involved access to sensitive Uber data it doesn't appear that the Uber service the Uber's public ride-sharing service has been affected, but yeah, right, they seem to be focused on, you know, continue to, um, you know, talk to the people inside and the people around the situation. they are very busy burning everything and figuring out exactly what should be taken as a response step and as you know future precautionary steps as well as all external services operational up to this point now there is an interesting bug Bounty relates here in which the perpetrator also hacked into its hacker one system that helps the company pay bug bounties to people who find vulnerabilities in Uber's system.
This is similar to what the company's bug crowd does to him. sure, um, look, I guess what I think is, um, that's how I first found out about the problem, uh, there was basically more spam, so you talked about some of the inaps. proper releases and there was, you know, apparently, the gangs are going through the corporate slack, you know, the people interacting were the attackers, etc. or in the white one called the white hat hacker or the good guy who thinks like the bad guys um Community uh i had submitted a problem to hacker one in the past basically saying this is what happened like its here now just for you I know there really didn't seem to be much intent or purpose other than to make a lot of noise, but it definitely did, and you know in that moment you obviously have a lot of you.
I know computer security experts who get this message jump right into what the hell happened mode, at which point you know I noticed and got involved and obviously started taking, you know the steps that might be needed from our perspective in the crowd of bugs, it's okay if weird things happen that affect vulnerability disclosure and the Bug Bounty space and we're obviously a big part of that space, we need to make sure that you know that there's nothing affecting us as well, which is pretty sure there wasn't , but you can't be too careful when things like this start to work well.
Interestingly, at this very moment, Joe Sullivan, Uber's former chief security officer, has been on trial for a data breach, a huge data breach that happened in 2016 that the company allegedly failed to notify the public when they should have Uber at that time. , as I understand it, he paid this hacker a hundred thousand dollars to disappear, but he did not disclose it correctly, um, what to do? you do the timing and also the uber story maybe I don't have a great track record here yeah it's interesting because obviously that case is ongoing right now I think you actually know it's in session for days it's been on session almost all week um until I know and you know I think the Joe side of the story and the insider side of this story through Discovery is unfolding now um you know that whole incident that I mean probably the other thing what got my spidey sense is kinda tingling um with the timing of all this was obviously all of that is currently happening with regards to the breach um you have you know a bunch of other things going on that are usually, um, you know, encouraging, I guess activists, uh, you know, hacktivism, um, activity, uh, around you, you know Bay Area Tech right now, there's a number of things going on, uh, that's getting people's attention, You know?
The merger testimony, uh, earlier in the week was regarding Twitter. You know what's going on with Cloudflare in the last few weeks. There are many very intense and very passionate topics. Illing up at the same time um and that was quite frankly the correlation between all of those things and then this thing that happened in Uber was one of the things that, as you know, gave me a bit of sleeplessness last night trying to figure it out. what the hell is going on, yeah, in terms of how that reflects on Uber and how it reflects on all of that, it's too early to say any of that. you know, sympathy and my heart goes out to the security team that has to work a very long weekend and comes to burn this whole thing down so i think starting there is probably the right place to start uh long weekend and hard confident in front of them, Casey Ellis, founder and CTO of bug crowd.
Dating app grinder just announced a new CEO George Harrison, co-founder and former CEO of auto ecommerce marketplace, this change delivers on the promise of appointing someone who identifies with the lgbtq plus community to this top position as the company prepares to go public George Harrison Join us now for more on the big news so you're going to take a big role here George but you obviously have some experience with a car market and on the board. What did you learn behind the scenes that you think you bring to the table here? Yeah thanks for making me see grinder it's an amazing company huh and I've built a company that goes public but margins are always a challenge in our automotive business with grinder margins are amazing and that's obviously a big difference Hey, Grindr is a really awesome business, but more importantly, it's a really awesome mission, right?
It's serving a community that's been underserved and using this product in a really dramatic way to connect and that mission to me is its appeal and I'm very excited to be a part of this and obviously the pinwheel has been around for a long time since 2009 the product hasn't really fundamentally changed in that time period people have used it the same way for a long time but the features it offers have obviously expanded from just being about sex to being about dating and now it's used in many other ways and my goal as CEO will be to try to continue to nurture this. really amazing product and the community that it serves the best, we can talk to each other a little bit more about how Grindr is used globally because I think there's an impression of, you know, in quotes, just a dating app, but it's really so much more yeah I mean in so many there's so many other things that people use to travel and a massive set of functions that people use it for and by the way it's all organic it's not like Grinders built products to make travel easier, but people log into a city They might also be visiting and start talking to people about where they should stay, what they should do, where they should, um, go out to dinner or go out for fun. pinwheel with the monkeypox epidemic right now the brand has been very active in helping our user base understand that there is a problem and where to get the vaccines how to get them there is even a feature within the app to find out where you need to go to get a vaccine for people use grinder in a bunch of different ways one of the interesting things to me on the board the last two months we left one of the most challenging countries um to operate and be gay in um recently because we just don't feel comfortable and you know we heard so many feedback from users in that country and NGOs in that country that led us to come back so the board was asked to decide whether we come back or not and I mean it's like a life For the deaf. problem almost somehow, on the one hand, people want to use the product to connect and it's very valuable, on the other hand, we know that the state uses the product to try to find people who are gay and like the society that you are in you find, right?
Do you deny people the product theyIs it really important to them or do you allow them to have the product at risk? Your security is a really difficult problem. I will not reveal the country in which it is located. because I don't think it's appropriate but that's how it describes how important the grinder is to so many people and what an amazing product it is to that community now that it's gone through a SPAC process with shift and I know you're trying to get grinder over the end over the finish line now, but how do you think about that given some pretty dire market dynamics and a tough environment? transaction done correctly not dependent on market conditions um and Grinder's partner for the stock transaction is a very strong staff there is a forward purchase agreement in the transaction ensuring there is no need for any capital to go into the transaction and redemptions are not a problem.
The last many of the newer specifications have not performed well. Most of the actions have not worked well. Sure but there's about two dozen stats in the last 12 months that are doing very well and they share a trade they're all profitable businesses so the grinder falls into that bucket as well it's a very profitable business and No one is selling in this transaction, so all the current owners of the grinder are going to turn around and move on. keep the business um so we feel pretty good about the transactions from that requirement perspective I mean um let's practice the mechanism to do the transaction so we can become a public company I think the outcome will be the same way we had done an IPO on a regular basis or a stock transaction, okay, you're one of the few openly gay CEOs, certainly as far as public companies go, is there a precedent you want to set here or a message you want to send? d yes I am very lucky and I think people should believe that anything is possible Just like one of my core values as a trader is that impossible things are possible and my whole life is almost an example of that where I was born in the Soviet Union um came to the US when I was a teenager to go to high school now this is the second company I want to take public amazing things can be achieved as long as you work hard and um you know for those people who are part of the community lgbtq living in countries where they feel like they're being marginalized or can't get out, things are going to get better because that's the direction the world is heading every day and we're very, very lucky to live in a country where we can be ourselves and not the end of the foreign threat all the time and increasing opportunities Grinder has already explored subscriptions and ads are of course the money makers yes yes we make money from two ways w we have ads in the product and we have subscriptions um our percentage of users that are paying users is actually not that high uh it's about six percent compared to the bugs in uh I think nine percent and matches at 18. um, so we have a huge opportunity to grow the paid user base, one of the ways we're going to do that is by creating more side features that people want to pay for Grand it has lagged behind in that sense, it only recently started to monetize its functionality and add new functionality so for example we recently released boost which has been a very popular feature.
I think doing more things like that will be really important and then with ads obviously there's a huge opportunity to have more relevant ads when we have ads that are relevant to our community. they are actually very effective and provide a very good service to the community, for example with health related ads, so my focus will be to make sure that the quality of the ad is really good and really allows the Community to use the product in good way if you don't want to pay for it, okay? George Harrison, Incoming CEO of Grindr, thanks so much for stopping by, we'll keep watching, thanks for having me, huh? guidance brings Doom and Gloom to the markets and especially e-commerce stocks we'll tell you more about that below this is
Bloomberg thank you one shop you won't want to miss
Bloomberg's big shot this Thursday on how a Chinese spy tried to steal GE Secrets but was caught by the US giving the world unprecedented insight into China's spy system.
This is how the arrest of an intelligence officer burned exposed an economic spy machine when a Chinese spy was extradited to the US The FBI got its hands on a remarkable resource its iPhone shed valuable light on how the largest economy in Asia steals top-secret tech Shu yanjun was an agent for China's Ministry of State Security when he was arrested in Brussels in 2018. How could the FBI prove it right on his iPhone, it was an official form listing his job as deputy director of division in the MSS. He could also have said that the professional spy shoe's main job was to steal defense and aviation innovations from companies like General Electric in 2014, for example, a colleague distracted a British engineer during a banquet in Nanjing while Shu was upstairs in his room. hotel room copying the contents of his laptop.
Shu said that he needed three hours faster. kind of intel they needed and then set about cultivating the sources that could provide it. One such source was a GE engineer who would ultimately precipitate his downfall after being attacked by the FBI. The engineer became a double agent and offered to meet Shu at a cafe in Brussels. it was, of course, a trap on the way to that fateful meeting. Shu sent a message to his wife saying that there was a USB stick hidden at home for which she had to receive the password was something that would happen to him she replied oh my god don't scare me like that the next day he was arrested now he resides in a Ohio jail facing up to 60 years in prison quickly takes Alex Webb away for that and of course, you can watch the big shot on Thursday.
Here are some other stories we're following. Shopify is now changing its compensation practices to allow staff to decide how much of their pay comes in cash versus Equity with the ability to withdraw Equity immediately. This is volatility continues. To beat tech stocks, the Canadian e-commerce company saw its own share price drop 75 percent this year and Google Cloud made some changes with plans to unfreeze hiring in October, reversing a lull. which was delayed in July of this year, according to Business Insider. He cited an internal memo from Google Cloud's vice president of technical infrastructure, Brad Calder, which said the unit needs to clarify its priorities for 2023.
But with mobile spending slowing in general, will people buy top-tier smartphones? in a recession? Let's discuss this is
Bloomberg thank you foreigner foreigner welcome back to
Bloomberg tech I'm Emily Chang in San Francisco the new iPhone 14 is out now the latest generation of Apple's phone in stores now in the high end Pro with a base price of thousand dollars apple not raising prices since last year this year maybe to counter the pain of rising inflation but still customers will pay in ludlow nyc with the deets add yes i mean this It's a global launch of the next-generation Apple Watch iPhone 14, but here in New York City, Apple CEO Tim Cook has been to town, he's been to the top. the west side has been to the east side has been on Fifth Avenue meeting with clients and there seemed to be enthusiasm there seems to be demand but the question on the streets will it fuel a global wave of improvements will it fuel a boost to Apple sales let's get out Let's bring up this pie chart, Mr.
Director, because we need to contextualize the importance of the iPhone in the context of overall sales, now it's over 50. Apple saved the biggest new features, the biggest upgrades for the most expensive ones. phone and you and I have been talking all week about the pre-order or pre-order data
showing that there is actually demand for the more expensive phone the other story we've been talking about is the evidence that there is actually demand Consumer Electronics is really slowing down right now let's look at the iPhone sales numbers over the past few years I'm just going to walk up here and go right to 2021 it was an amazing year for Apple fair iPhone sales record The thing is, the early data also
shows that the demand for the highest priced phone with the prettiest, sleekest, highest spec features is actually outpacing what we saw in 2021 as well, so there's debate about this, there's actually a guy who works in
Bloomberg intelligence here in New York.
I think you might be about to talk to him. He may not see it the way some people see it in terms of this big wave of improvements coming, but some of the street is fine though thanks. I want to continue this conversation with Carolina Milanese from creative strategies and our own
Bloomberg senior intelligence analyst on Rog Rana, who covers Apple for us. um Caroline. I'll start with you since we talked to you last week about the Apple event we kind of got your preview kind of now that you've seen some of this pre-order data how good it looks no wonder we're seeing a sales bias towards the higher end of the portfolio, that's always the case with pre-orders, usually customers who pre-order are early adopters of higher revenue level
technology, so you always see that and I always warn people not to judge the long tail kind of the rest of a portfolio just by pre-orders I think what Apple has done this year with the pro line is appealing to a wider audience than just camera lovers so I think Dynamic Island It really is a refreshing take on that high-end family to appeal to a broader consumer audience in Iraq.
I know Apple didn't raise prices, but we're in a recession. They are all suffering. We are paying more for gas, groceries and everything else. We are going to update our devices right now. our opinion is that Apple runs on an update cycle of about 3.6 or 3.7 years, so if you take the large install base that they have, they will sell over 200 million units every year, no matter what year whatever but for us ipods iphone 14 doesn't move the needle we think it will be next year's model with bigger hardware changes but i agree the pro model is good it has a better camera there will be some people who will they will move and remember people who can afford to buy thousands of dollar phones you know gas prices and things don't really bother them that much so Carolina what else are you looking at here?
I mean FedEx just cut out their own guidance and brought Amazon down with it and there are broader caveats here about what's going on in the global economy. Vine from Apple's perspective it would be interesting if the bias towards the professional and also the 14 plus models will affect your average selling price so we might see a higher selling price compared to last year before we see a difference in volume and then the other part is early adopters die off as the The cycle continues to see how the earlier models are going to impact overall sales and then beyond the iPhone of course we're all looking at Apple Watch both at the very low end with DAC to get more people into the ecosystem and then the very high end With the ultra 800 price model, what do you read in this FedEx data?
They specifically named Asia and Europe and, of course, Apple i. It is a global company, yes, and this is part of the note we wrote a month ago. I said that for Apple, 43 of the sales come from Europe and China combined and those are the regions that are really struggling. In fact, I would say that Europe is going to have bigger problems in the short term with rising fuel and energy prices, so that's one of the reasons why we said that, year after year, we don't see the iPhone sales grow more than a percent or two now for a lot of people that can be a bad thing but in all honesty it's not bad at all in a down market you know you won't see negative sales compared to last year so overall I think it's a good loop.
I mean but not as strong as next year next year we think it's going to be a much bigger update to the iPhone now as far as the watch it's a beautiful watch the 800 watch is amazing but speaking frankly, those things don't really move the financial needle on Apple Catalina. is that it agrees with your projections I think that next year for sure the update cycle will be higher not only because of the hardware but there will be a step forward in Powers processing so I think that especially forthe markets that seem to be struggling the most this year from a financial perspective China in particular which pays a lot of attention to the inside of the device not just the look and feel of the outside which will matter a lot um and I tend to agree that overall already You know, while the sales of the other products don't make a huge difference to the bottom line from a revenue perspective, it does tie in more customers that Apple will benefit from in the longer term and a more loyal and unified user base um, ok obviously there is a lot to go on when it comes to apple honorag.
I want to ask you about another story we've been following. You have a new note about this Adobe buying figma for 20 billion dollars. Of course, figma was a pretty big competitive threat to Adobe. I wonder if this is kind of an admission of defeat a little bit either way that it's a huge number it's a smart deal so one of the things we said know
technology wise it may be a smart deal but I think this is the wrong time to do it we know software evaluations have been around since last november and for a company that was valued at 10 billion last summer to buy them for 20 billion i mean nobody likes there i think they've lost about $35 billion in market capitalization right now for a company that's going to do about $400 million in revenue for the next year, so I think they really need to think long and hard that investors have clearly made it clear that they're looking for margin expansion, you know, earnings growth, even if it grows, it slows down a little bit as much and frankly, you know, in our opinion, Ad obe is such a broadly diversified company with a very large installed base of you guys know creative products if in one area the product has competition it's not a big deal to me frankly it's fine on a ragran intelligence
Bloomberg together with Carolina milanaci prin Analyst main of creative strategies, thanks to both of you, all staff will continue to follow up well, it is a potentially worrying sign for the global economy, FedEx has withdrawn its earnings forecast due to worsening business conditions, as we mentioned earlier, the giant of package delivery points to weakness in Asia and challenges in Europe FedEx takes immediate steps to reduce costs, including parking some planes, reducing work hours for workers and closing more than 90 locations FedEx Office.
We'll talk about this being
Bloomberg thanks with the merger now complete, let's take a look at how important this successful update was to the community and what comes next Joe Lau, co-founder of alchemy, a web 3 development platform to build and scale decentralized apps is with us now Joe thanks for joining us so looks like everything went according to plan what are your key points plus some pretty tty funny panda memes uh I'm Lee thanks for having me today um and yeah , the merger happened a couple of nights ago uh it happened at midnight our whole team stayed up to see it as did a lot of the ethereum community i think the most important thing was this was a monumental effort it's part of a multi-year roadmap, a multi-year long roadmap of hundreds of hundreds of stakeholders and there is no single centralized decision maker or anything like that, so the fact that q it all came together like it did uh super smooth it's amazing i think i would liken merger to uh changing the engine of a plane that's already in the air so you have the ethereum blockchain it's a multi 100 billion dollar ecosystem and the fact that they are being able to keep it alive keep it running and swap essentially a piece of the core and not have hiccups is amazing what this really means for the alchemy ecosystem that's a great question so alchemy for those who don't know um is a blockchain development platform, which means you can think of us as Amazon web services for blockchain and web3, what that means is we help developers and enterprises build much better applications by providing them with a development platform on top of which to build so we started the company about five years ago five years ago we have grown extremely fast in the last few years today we generate We have about $150 billion in transaction volume um a lot of the top ethereum um top companies in blockchain and ethereum and blockchain in general huh, and we also work with a lot of the bigger companies that are moving to the blockchain and webview space today, like meta Adobe Shopify, and we look at what the merger means for Alchemy, so we're a developer platform, our goal is to make sure that developers always have access to the infrastructure they need to build the apps that need the fusion basically ethereum updated uh ethereum updated to um to allow basically allow the ethereum reum to allow the network to work proof of stake instead of proof of work for us it means making sure our services are always 100 assets so that developers can have access to them and that is exactly Before what we did, so of course we've been talking about the merger for years and now it finally happened.
What is the crypto and blockchain community talking about? Now what's next? Yeah, so the merger is just the first step and again a multi-year roadmap. proof of work using uh power proof of stake allowing uh which allows users to stake their tokens on the network the value itself on the network so that's a 99 to 99.95 uh reduction in power usage for the blockchain uh for the ethereum blockchain which is awesome um what's next is going to be a lot of investment to scale so there's been a lot of excitement so ethereum as a network is um it's just just is starting, it will be much faster. r is going to be a lot cheaper and that's where a lot of the focus is moving forward, the merger was the first step to unlocking the ability to do some of these other technical upgrades in the future that make ethereum faster and cheaper, and those are going to be the areas that he's going to focus on next and it needs to be faster and cheaper for you to meet killer apps if you want to have that killer impact but I still hear people say killer app for crypto still has not been created. what do you think that is that's a great question emily um and that's something everyone in space is always working on.
I think what's really interesting is that all technologies start out slow, inefficient, and expensive if you look back at the Internet. back in the 90's when we were using dial up you couldn't even upload an image the image would like to load in a couple of minutes in chunks on a screen but fast forward to today and we not only have images but we have a video, we've got YouTube, we've got Tick Tock, something like this, you and me talking on a live stream would be unimaginable if you went back to 1995. So I would look at ethereum and more broadly the web 3 blockchain ecosystem with the same lens which is it's just a seed space, it's just starting out, but what will happen is you have upgrades like the mix that improves the
technology, you have more developers creating more apps which in turn drive more investment to further improve your
technology and so on and so forth you get apps better and better and eventually a killer app emerges.
We're already seeing a lot of excitement around not just cryptocurrency, we're seeing stores of value, but gaming and creator monetization and things like that, and I think that's just the beginning. Alchemy has its own arm program and VC grants and I have curious what kind of projects are you backing right now how is it impacting the macro environment a terrible market situation g your decision making and climate valuations are going down yeah that's a great question so I think there are assessments in the What's important is sort of like the blockchain ethereum ecosystem, as long as the developers are creating new applications, they will come out that will attract more users, they will attract more developers, the ecosystem and
technology improves, so our the adventures arm has seen a tremendous amount of growth I think we're seeing 300 quarter-on-quarter growth in terms of fuel velocity we're seeing more and more people coming from traditional tech and other industries in the space to work on new stuff um and it's been very, very exciting we also have educational properties that are aimed at bringing people into the space and teaching Talk to them how to develop on web3 for free and we're seeing a lot of growth there so overall I think it's been a perspective very very positive ok although there is a lot of negative sentiment and i wonder how i'm filtering that you know where you see you know a problem problematic parts of the nfts market for example are really struggling and you know you still have a lot of skeptics saying this it's not real yes it's a good question and I think it's a valid question it's a very valid question what I would say is sometimes the People say that there are, uh, you know, like in different areas of the blockchain ecosystem or Market, there are things that are maybe a little bit gimmicky or fluffy. um I would say that's not unique to this
technology it's a lot we've seen for all the new technologies the computer the internet mobile web applications it's always there I think the important thing is to look at the top level trends and see what pe People are really excited about what people are working on and I think we're seeing a lot of really valuable use cases start to emerge and that's what's really exciting okay I think the warning signs oh , sorry, go ahead. really out of time Joe but I really appreciate your very thoughtful ideas we'll have to do this again um as the market continues to evolve Alchemy co-founder Joe Lau thanks so much for stopping by. the force was weak with disney as he scraps his next star wars movie how it will affect disney the difficulties getting people back to the movies next is
bloomberg thank you thank you disney has pulled the next star wars movie Rogue Squadron from its schedule of 2023 releases to disappointment for theaters still trying to recover from the pandemic joining us now
Bloomberg's Chris Paul Mary so it sounds like Chris is still going to make the movie but it won't be released next year so It is, and this is.
It's a reflection of a lot of things that happen in the movie business, one of which is of course the pandemic, it's hard to get things going again, and you have a female director on this movie, Patty Jenkins, that he's done other Wonder Woman movies that he's working on. on a third of those that hasn't started production yet either so scheduling something of this magnitude is hard of course this is Star Wars and you want to get it right three years ago you broke the news in an interview with the then CEO Bob Iger that you know there was some disappointment when they initially released a lot of Star Wars movies and put them on hiatus, uh, the last one was in 2019, so there's a lot of pressure to make sure they get it right, but I've been told that this movie is still in development just like other star wars movies ok not good for theaters though i mean were they really counting on this one? money billion dollar box office um is uh you know it's a story we keep hearing theaters are coming back theaters are coming back the reality is the industry will probably make eight and a half billion dollars this year the peak a few years ago was over out of 11 billion so it's still a long way from where it was.
You know you had some big movies this year. Top Gun was obviously huge, huh, but they really have these big events as they are called to bring people to theaters. Star Wars. is certainly one of them well its in keeping with a story you just wrote called uh bad news in hollywood comes almost daily at least thats the opening line so what other bad news are we listening? of the streaming business, uh, for years everyone followed this kind of Netflix model as it's all about signing up subscribers, spending a ton of money on movies and TV
shows and you know the business is going to do it, the revenue and the profits will. keep going everything reset this year netflix you know since we reported that there are a lot of subscribers so all the stocks in the entertainment business have crashed and now everyone is focused on when are we going to make money from our street businesses , many of them are losing billions of dollars and we have seen it, particularly on Netflixand Warner Brothers who just did their big merger with Discovery big cuts and staff they're canceling projects everyone's rebooking you know the budgets for TV
shows huh and things are kind of languishing while everyone waits watch this all play out on wall street um ok on that uplifting note huh what are you watching this weekend ok to go back to star wars even though the movie and i hiatus you know his fourth tv series is coming out next weekend of the week or um right and so far it looks pretty good and oh gosh I really love the new Game of Thrones House of dragon it's fantastic ok I am.
I also like House of Dragons. I'm excited for Sunday. Chris Palmieri. It's always good to have you. Hmm, and happy Friday. Everyone have a wonderful weekend.