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Hour, Apple's AI delay, a Bloomberg exclusive on Apple Intelligence rolling out later. Post iOS update plus from Cryptocritic to bitcoin backer. Trump vows changes at the SEC and if re elected, to make bitcoin great again. And Deadpool's domination the Disney film shatters box office records on opening weekend. This is a really big important week for megancap earnings. Take a look at the Nasdaq one hundred. We're up meaningfully in the session, but we're coming off the back of three straight.
Weeks of weekly declines.
We were talking over the weekend about the NAZAK one hundred being in correction territory. You have ten trillion dollars or so of marketcap reporting across Microsoft, Apple, Meta, and of course Amazon. We will get into that. Apple is a name that we're watching really closely. It kind of opened lower and it's been chopping, trading choppy, and now it's modestly lower, basically flat. A Bloomberg exclusive, Apple's AI features have been delayed, and we'll miss the initial release
of iOS eighteen in September. According to Bloomberg's reporting, the company plans to release Apple Intelligence by October, but will make it available to software developers for early testing as soon as this week, an atypical strategy for the tech giant. I want to welcome back Bloomberg's Mark German explain the reporting here because the detail is important.
Mark, thank you so much for her. I mean great to be back Apple Intelligence. This is Apple's big initiative for the upcoming year. This is Apple showing the market, showing consumers that it too has generative artificial intelligence features. They announced these in June. The intention was to bring them to market with iOS eighteen and iPad os eighteen, which will launch sometime in September. But now I'm told those are being pushed back to iOS eighteen point one
and iPad os eighteen point one. Now this is not a big delay, but this means that they likely won't come pre installed with the iPhone sixteen when those devices go on sale in September, and it also means the features will come via software update by October, so it's about a few week delay. It's not a huge deal, but it shows that the company is still racing to iron things out and fix bugs before this very important public launch.
I'm going to get into the stock story with my next guess, but I think it's worth recounting the basics of Apple Intelligence. So I've got iPhone fifteen Pro, which I think in the end will qualify me to be able to get Apple Intelligence. But just explain the rollout broadly across what kind of device you need to have, and then like what it's going to do.
Yeah, So, first of all, Apple Intelligence requires devices if you're on the Mac with Apple Silicon or if you have an iPad or iPhone devices with a gigabytes of RAM. So for the iPad, that means any iPad with an M one chip.
Orneur and Apple start.
Including M one chips with the iPad Pro and then later the iPad Air beginning in twenty twenty one. Now the iPhone is where things get a little bit more interesting. Today there's only two iPhone models that will support Apple Intelligence, the iPhone fifteen Pro and the iPhone fifteen Promas that's because those are the only two iPhones on sale right now that include a gigabytes of RAM. Now that gets interesting because there's going to be soon four more models
that have a gigabytes of RAM. Those are all the iPhone sixteen's, the regular one, the Plus, the Pro, and the Promax launching in September, so pretty soon a bunch of more iPhones will include Apple Intelligence. That's so interesting because that is probably going to spur people to upgrade their iPhone give it. It's not going to come to older models.
Now.
Apple Intelligence includes a bunch of AI features. It's basically a cash all term for a lot of new AI features coming to the Apple devices. That includes being able to create images, integrate with chat, GPT, a new version of Siri, the ability to have writing tools so you can write something in an email and it will be able to summarize it for you, shorten it, make it more conversational, be able to summarize incoming text messages, transcribe a voice memo or a phone call and then create
a summary for you. So just a bunch of different AI features across the board. These aren't anything extraordinarily innovative or brand new. Not a lot that we haven't seen for other platforms before. But the deep integration and the ease of use and the interface that you're going to see on the Apple devices really takes it up a notch against rivals.
Apple Repoles fiscal thed quarder earnings Thursday after the market close. I heard a rumor that you and I are going to be seeming up on the top Live blog. That might be news to you. Give me the Mark Germans what to watch list for this Apple print.
Yeah, this is an interesting one because you're really going to want to pay attention to the guidance that Apple CFO Luca Maistry and Tim Cook.
Give on this call.
They're not going to give you numbers, but they're going to imply probably how the iPhone is going to do. So that's really going to be the most important part there, because there was not a lot of new hardware launch during the quarter that we really care about other than the new iPads. So all eyes are going to be on that four looking.
Commentary Bloomberg's Mark German, it is incredible to have you back here on Bloomberg Technology.
Thank you.
Let's stick with the Apple story and bringing Maxim Group Managing Director tom Forte hold on the stock one hundred and ninety five dollars price target. What we didn't necessarily talk about in Mark's reporting is why it's important. A lot of the run up in the stock over whatever time period you might choose, is optimism that this is
come a real tangible effort on artificial intelligence. So your response to that reporting, it's a matter of weeks in the rollout of Apple Intelligence, but it seems significant.
Sure, So when I think about my hold rating on Apple, the question becomes how much are investors potentially ahead of themselves when thinking about the upgrade cycle for AI. I
certainly think they'll be an upgrade cycle for AI. In our numbers, we're looking for essentially half the lift they got from five G. And the reason we think it'll be half the lift not as much of a lift, is they have pressure from a regulatory standpoint in Europe, which is about twenty five percent of their sales, and in China, which is about twenty percent in their sales, and now we're seeing that they're going to have a slower rollout of Apple Intelligence. So I think clearly there'll
be an upgrade cycle. I just don't think it'll be as significant as what's already reflected in the shares.
One of the things we've been thinking about bobout technology is basically, for every dollar put into AI, how many dollars are comeing out for each of these companies. In the case of like the cloud players, it's a bit more easy to do the math AI infrastructure investment top line growth. But in Apple's case it seems like Apple intelligence that they hope it spurs upgrade cycles, right because
you need the hardware that's compatible with it. As as Mark outlined, what's your model for how a dollar in translate to however many dollars out for Apple?
This is a good example where artificial intelligence can result in sales. I think the challenge you've seen in enterprise software is heavy level of investment spend for artificial intelligence and not a near term twelve to eighteen month impact. The size of the price for Apple here is about fifty billion dollars. So if you look at the incremental revenue they generated from iPhone, which is about half their sales on five G, they added fifty billion a year
in annual revenue on the five G upgrade cycle. So to the extent that AI spurs something similar. You could be looking at an incremental fifty billion of revenue for Apple. Translating that to EPs, we're looking at card mid to high single digit EPs growth from flat growth.
We're talking the Tom Forte of Mattim Group, who has a hold on the stock one hundred and ninety five dollars price target earnings. Mark set out what he thinks
we should be looking for. A lesson learned in recent quarters is maybe don't put too much emphasis on the third party data, particularly maybe around China, because the third party data tells us that the iPhone is slipping in China to domestic handset makers, and yet the last earnings on the call in particular, they said, no, we think we've got growth back there those slightly in congruous or
competing data points. With that context in mind, what are you bracing for for Luka Maistreet to say or otherwise?
Yeah, so similar, Mark said, I'm going to try to reverse engineer essentially what the outlook is for iPhone sales in the September recorder. So the expectation will be that they'll have a new iPhone sixteen that I'll come up in the September recorder. Yes, the software will lag into the December recorder. But to the extent that that is the commentary I'm looking for. And if you looked at the June quarter, the same exercise suggested that iPhone sales
would be negative in the June quarter. So did we see a transition from negative to positive on the upgrade cycle for AI?
Where's the biggest surprise going to be? In the Apple print?
The biggest surprise is going to be I think that the incremental lift to iPhone sales from AI will not be as significant as currently reflected in the stock stocks trading it north of a thirty times pe the tech big tech peers.
Are more like twenty seven and a half.
And I think right now investors are just expecting too much of a boost for Apple from AI.
A story we discussed less and we've actually gone away from with Amazon as well as ecosystem. You're a device user, but you now use services. Do you think Apple moves back to that story with AI?
That is a great story for Apple.
So to the extent that incremental iPhone sales result in incremental services revenue that could enable the company.
To perhaps support a higher multiple.
So ecosystem is very important to Apple and to the extent that they can leverage AI to get consumers more excited about their ecosystem. Here to advance our purchases on higher margin services that could be wonderful for the stack.
Tom Forte, Maxim Group Managing Director, great to have you back on. It's a big week for big tech with four of the magnificent seven megacaps posting their quarterly earnings.
What a calendar that is.
You might think your attentions are over in Paris with the Olympics, but in the world of technology, you are glued to Bloomberg Technology right through the course of the week. And it's not just the megacaps, some of the chip names as well. Let's get the outlook with Brad Erickson,
Capital Markets Research analysts at RBC. I think in order to look forward, I look back at last week in alphabet and the lessons learned, the questions that investors posed, and we've already talked about it in the show, but I think it's a question about for every dollar you put into AI infrastructure investment, how many dollars are you getting out in the near term for AI?
Is that how you'd approach this.
Week Yeah, I think that's going to be a key topic. You know, we're not going to get a ton like out of Meta or Amazon, for example, in terms of what they're spending this year. People are already generally kind of understand that. I think we're going to be looking at the marginal dollars, like you said, And I think what's interesting is I think a quarter or two ago, people were very focused on specifically what AI was driving.
But I think what we're learning more and more is that AI is really sort of integrating into these models and so you can't unpack it, which is okay because then we actually can evaluate the dollar growth in these companies and what is sort of justifying those CAPEX investments.
There are things that they're sort of idiosyncratic.
You know Meta's case, we kind of forget into massive portfolio of social media companies. But they last quarter told us about their plans for infrastructure, which wins out the forward looking AI story or the backward looking history of that company.
Oh.
I think people are definitely going to be looking forward right, the story will be the same. We'll look at the revenue trends and evaluate kind of what they're saying about the ad market and their products in particular, and then the focus on the call is going to shift to Mark talking about his vision for AI and trying to
give people some comfort. I think this quarter in again, why are they making such big investments where maybe we're going to see you know, maybe a little bit of sort of call it delayed gratification in terms of when we see those investments payoff. Right, he used the word last quarter, multi year investment cycle. That's a scary term for people. So we'll see what kind of performance he puts up on the call later for this week.
For me, Brad, this is a week where being a CEO or a CFO you kind of got to earn that paypacket, Do you know what I mean? That it comes down to community at the end of the day. I found last quarter fascinating. How much kind of faith or credence do you put into the words spoken by the people at the top.
Yeah, you know, I think they're a little bit different cases. Right, we cover Meta and Amazon, so maybe I'll stick stick with my commentary there in terms of Mark Zuckerberg and Meta. You know, I think one of the adages we've heard lately is you want to buy Mark when he's feeling maybe a little bit more confident, and sell him when he's when he's feeling or so yeah, sorry, buy him when he's feeling a little little bit less confident, sell him when he's a little bit more confident. Last quarter,
I think they're delivering such high growth. They were twenty seven percent growth last quarter, twenty two percent this quarter. You know, I think that that felt a little bit tough, and obviously the stocks sold off. Historically, I think you've seen that flip to the other side, So we'll see what kind of tone we get out of him here.
But if he's basically talking to maybe more moderating growth rate and feeling a little bit better about those investments, that can be a positive sigence on Amazon's it's I think much simpler. You know, we expect the Indijas to come out with a very confident tone around AI. They're not going to get into the game of sort of promoting themselves or even speaking to how much AI is exactly contributing. But I do expect their commentary to remain very polish on AI in general.
So that's an interesting point.
What they said last quarter is that for aws revenue run rate one hundred billion, but specifically for generative AI revenue run rate in the billions, multi billions of dollars.
That seemed like enough.
So if you don't expect them to kind of over exaggerate or expand on that, what do they need to say this quarter to keep investors convinced?
Yeah, I think you know, previously they I think they had been a little bit behind, certainly on even on just the acquisition of GPUs necessary to train up their models and their platfor so I think maybe give them a little bit more color on progress forward progress and
aggression there will be super helpful. The other thing, too, is that, you know, one of the things they emphasize is when they say things like multi billion dollar run rates for AID, they're really talking about broader AI, which they've been working on for years, very much pre dating the onset of generative AI last year. So again it's a little bit hard to unpack, but that would be the general forward commentary, I would say.
Brad Eggs and Internet analyst obviously Capital Markets. Great to have you on the show. Thank you all right. Coming up on BlueBag technology, France faces an Internet disruption. More on the latest infrastructure attack as the Paris Olympics gets Underwegh also taking a quick look at shares on Semi up eleven and a half twelve percent, one of the best performers in major enc's s and P five hundred strong earnings basically second quarter adjusted earnings per share beat estimates.
You know, it's a name where their chips are more related to kind of automotive industry. They have a wide arrange use case not so much AI, but it's a name that we track quarterly on this program. Good results. This is Bloomberg Technology. It's time for talking tech and first up. Shares of Ali Barber rising today, the stock hitting its highest than two months in Asia, trading investors cheering the e commerce giant and their plans to charge
a higher service fee from merchants. Bloomberg reported that Ali Barber is set to raise their software service fee to zero point six percent, which will boost its core merchant revenue plus SHAWM plans for an EV expansion. The Chinese tech company has purchased a one hundred and thirty one acre plot of land in Beijing for one hundred and sixteen million dollars in an effort to expand its electric
car production. Jarmi first entered the auto sector in March and has already delivered thirty thousand vehicles so far, with the company on track to reach its initial goal of one hundred thousand cars by November. And another infrastructure attack on France during the Olympics, this time a number of fiber optic cables carrying Internet services across the country were cut overnight. Orange, the Olympic telecom partner, said the connections
into Paris and thus the Olympics were not affected. Just on Friday, coordinated fires on French trail lines had disrupted trains ahead of the opening ceremony. For more, let's bring in Bloomberg's benoir Bertelo out in Paris. You know, this is a story benoir where there are many questions who, what, where, when and why?
But what's the latest fleas.
Yeah, so clearly was a large scale attack under fiber on networks during the night between nine am, one am and three am toord middle of the night. There were nine places we are told across France where long distance fiber optic cables were cut. So really this is the highways of the Internet powering the network and thanks to redundancies there was no real impact, just a bit of
latency for some customers. But clearly this is the scale of the attack that's a sort of borrowing authorities in France for the trains that the trains are back to normal as of today and it's been slowly going back to normal in the weekend, so so far, not really disruption of the Olympics. It's not been disrupting either the train or the internet outage have been disrupting the Olympics.
But really it's the scale of these attacks and the fact that they are targeted across France rather than on Paris that is sort of interesting and surprising authorities.
Then the out and in question I suppose is is there a link between the rail nodes that were a victim of ars and attacks last week and the cutting of fiber optic cables overnight. Is there any evidence that that is part of a wider and coordinated attack.
So there is no evidence that we know of so far. There are two separate investigations that have been started by the Parious Prosecutors Office. Clearly, it's what's similar is that there are there is a good level of intelligence on where exactly to act, especially on the train attacks like these really were important nodes in the network, but there's no proof of or no indication so far of who
could have done this. The Interior Minister this morning said they were advancing on this, but clearly there is no information of who could have done it and if there is a link between the two attacks.
Away from the news head lines, it was a weekend where I everyone watching the preyram was glued to their television. I really enjoyed the rugby seven's Congratulations to France on incredible performance. What's it like in Paris now Benoir. What's the experience of being in the host city and host nation.
It's a great atmosphere in Paris, Kelly. Lots of Parisians have feed the city, but it's a lot of people from across France that are coming to see to see the events and many tourists. Of course, the weather it is much better now, so that's that's great. Great location across the city that they've chosen to put the events location really in the middle of the city and it
turns out to be great. So so far, transports in Paris are fine, there was no security incident, thanksfully so far, so I would say good for those visiting in.
Paris, Bloomberg's Ben wir buttlo thank you so much. Great to have you on the ground in Paris, Welcome back to Bloomberg Technology, Ed Lovelow in New York City, and a very quick check in on the markets.
I mean, we know the story this week. It's a story.
About four of the biggest technology names reporting earnings and then as that one hundred is basically flat in the session, but the context is that it's coming off three straight weeks of weekly declines. There was a lot of talk about how close we are to a technical correction, so there is a lot at stake depending on how those earnings reports go in the moment. One asset class that's
superin focus is crypto. Bitcoin around or just below sixty eight thousand US dollars per token and other names miners or crypto adjacent names had been kind of interestingly high.
Now lower. Why will bitcoin.
Touch the highest level since mid June, after Republican candidate Donald Trump expanded his pro crypto agenda at Bitcoin twenty twenty four over the weekend.
Is speaking at the conference this afternoon.
I'm laying out my plan to ensure that the United States will be the crypto capital of the planet and the bitcoin superpower of the world, and we'll get it done.
Let's break it all down with Bloomberg intelligence analyst James Seffert, who was at the conference.
You're looking fresh.
After what I imagined with some late nights and wild afternoons over in Nashville.
I mean, we'll get to Trump. Just what was it like? How is your weekend?
Yeah, I mean it was. There was a lot of excitement in the air. I was. I've been to the conference the last few years, and I will say this feels it makes sense. Right. We have the Bitcoin ETFs now that launched in January.
There's a lot.
More big banks and big institutional players that if they're not fully involved in bitcoin, they're at least interested. I mean the likes of I interviewed Robbie Mitchnick from Blackrock on stage. We had Yon van Neck, the CEO of van Ck, State Street was there, Fidelity was there, you name it. There's a lot of institutional, big time players from the cheerful financial world that are now dipping their toe or not fully jumped into the water on the bitcoin side of things.
So I will say it's become more.
Mature, but it was still a lot of excitement.
There was a lot of fun and people were amped up to have Trump and a lot of There was over ten other congressmen and women at the conference too, so it was almost a little political party in a way too.
So the headline is that Trump has promised to make bitcoin great again, which is good for headlines as.
Sound bites go.
But also talked about SEC chair Gary Gensler and saying that he would basically replace him if he's reelected with somebody that loves crypto. How did that go down with the industry, investors, the community around bitcoin.
Yeah. He gave a rare long, rambling speech as Trump often does, right, and the one thing that got the crowd the loudest by far was him saying on day one, I'm going to fire Gary Gensler. And let's be clear, I'm pretty sure he doesn't technically have the ability to do that, though it's pretty standard when a new president and comes in they kind of turn it over and get the people they want at the heads of agencies.
But it doesn't matter.
It's a talking point and it's something that people love. You also talked about stopping Elizabeth Warren and her quote boons a whole bunch of other things out there that the bitcoiner crowd wanted to hear. I guess actions speak one of the words we'll see, but they definitely liked it. It was certainly a little bit different from his typical trumb speech audience, but he hit the points he wanted to hit.
Bitcoiners seemed to love it.
Yeah.
James for Bloomberg Intelligence, who was there at Bitcoin twenty twenty four, Thank you. Let's keep a conversation going as the US election looms. Bloomberg's out to day with a big take on Trump's own journey with crypto, going from skeptic to bitcoin cheerleader. I'm delighted to bring in Kristen Smith, CEO of the Blockchain Association and DC based Trade Association. You represent around one hundred of the industry's leading companies and you're quoted in that big take. But for me,
that's the story. It wasn't so long ago that former President Trump was talking about that the criminality associated with crypto and blockchain, his doubts about it, to now being all out. Has that changed the tide for your industry?
Well, nobody ever goes from being pro crypto to anti crypto. It's only the other way around. And I think that's what we saw with Donald Trump, and it's what we're seeing with folks on both sides of the aisle, both who are in Congress today and who are running for Congress right now.
And I think the.
Reason for that is that when you don't know a whole lot about crypto, you often have misconceptions about what is used for or how it works. But as you gain that knowledge and you begin to understand the power of decentralized technology, you realize what tens of millions of Americans know is that this is something that could be the foundation for a new financial services system or an alternative to the big tech ecosystem in a way that is better for users and consumers. And so there's a
real reason that people like this. And what we've seen as a result of this is it's translating into the elections. The crypto voter is real and the crypto advocate is strong. And I think that this is something we're going to continue to see talked about heading into the elections.
As far Kristin we mentioned it, but I want to actually play the SoundBite. This is former President Trump talking about the SEC and Gary Againstler.
On day one, I will fire Gary Gainst, who will appoint a new SEC chairman who believes America should build the future, not.
Block the future.
Caban taking office, I will.
Immediately appoint a Bitcoin and Crypto Presidential Advisory Council.
What is the Blockchain Association and the groups that you represent reaction to that statement.
I think people are incredibly excited by that that statement. You know, we have had both at the Blockchain Association and within our member companies a lot of outreach over the past couple of years to the SEC to try to have a reasonable conversation about how to bring regulation
to this space. And as a result, Gensler has just come back with enforcement action after enforcement action, and it's costing the industry hundreds of millions, if not over a billion dollars in legal fees just to deal with challenges from the SEC. Right now, this is absolutely ridiculous. Isn't how things should be done, And people are angry, and so I think people are very excited that Trump has
come out this strong. I think what's interesting is we're also hearing a lot of conversations on the democratic side of the isle we have. We had Billy Fourteen members of Congress wrote a letter to the DNC urging them to include something pro crypto in the platform. And there's a lot of outreach to the new nominee or presumptive nominee. I guess I should say on the Democratic side, Harris, to see if can come out and do something pro
crypto as well. So this isn't a partisan issue, but I would say Trump had a very strong showing over the weekend, and people were incredibly encouraged by the acknowledgment of the difficult time that we've had over the past three and a half years with Gary Gensler.
Christ On, the vice president. That had been reported she'd also considered appeering out or speaking at Bitcoin twenty twenty four and then did not do so. Has the Blockchain Association had any conversation or engagement with her campaign team and would you hope to do so?
We absolutely hope to do so.
We have outreached both to her government team and her campaign team right now, and I know she's had conversations with some of the leaders within the industry already, and so I think there's a lot of hope. I think what's really interesting is typically when Donald Trump comes out in support of a policy, the Democratic Party runs the other way. But what we're seeing here is a competition
for which party can gain that value crypto voter. There's a poll from a couple months ago, but I think it's still relevant that one in five voters in swing states considers cryptocurrency an important issue heading into the election
this fall. And I think that both sides are seeing those numbers and that there's a realization that there's no upside to being anti crypto, that really both parties need to be thoughtful about how to approach this so that we can get the right policy in place, so that those voters will will go to the polls, but more importantly, that we'll be able to keep the industry and the community thriving here in the United States.
Christin Smith, CEO of the Blockchain Association, thank you. Another story we're tracking. The US Justice Department says TikTok collective users information on sensitive topics, making it a national security threat, which justifies a law to ban the app in the US. If byte Dance doesn't divest belan Thos, Mike Shephard is back in. Mike let's just start by asking what is new here and what is the latest.
So there are three key points that emerge in this Justice Department filing, and that was the first detailed response to TikTok's effort to overturn this law that was passed in April and signed by President Joe Biden. It requires the company to be sold by its Chinese owners by January nineteenth. The government has been on the hook to demonstrate further in court why that's necessary. So there were three key points that really emerged. One, you headed right
at the top is data collection. The company collects a lot of data on its one hundred and seventy million users. That includes private messages, viewing habits, even users' location, and that is information that is not adequately walled off from China and from China's government, the government contends. Two, we also see the government raising the flag of censorship. It says that China could step in to exert control over content on the platform, either censoring or promoting different kind
of content that could suit its government's interests. And then three, we saw the government take on the whole question of free speech rights that TikTok has been raising as it challenges this law. We're seeing that TikTok is saying this is unfair, but the US government responded seeing that, look, free speech rights do not apply when the algorithm and data are being collected and owned by a foreign power, and that is really one of the key issues at hand here.
I might will show the TikTok response, but very quickly summarize it for us.
Well.
In brief, they are doubling down on their response that this law violates free speech rights, and it also insists that the government has yet to show adequate evidence of this national security threat that lawmakers talked about, that the Justice Department talked about in the briefing filed on Friday.
And to be fair to TikTok's point, so much of that filing from late Friday was redacted, so only the judge in the case we'll see those arguments made on national security grounds because that information remains classified.
Still Boom bags, Mike Sheppard, thank you now, coming up rated opening weekend record has been smashed by Deadpool and Wolverine. Details on Disney's box office domination. Next, This is Bloomberg Technology. It's going viral. Deadpool has dominated the weekend box office, bringing in two hundred and five million dollars, making it the best ever opening for an R rated film. Bloomberg's Hannah Miller joins me on set, and what's so astonishing about that is that's just the US and Canada, you know,
so global hit. But the numbers are ahead of forecast. Here just give me the size and scope against everything else I could have watched this weekend.
Yeah, it's smashing records globally as well for R rated movies. People are flocking to this film. There were very high expectations from the get go. It has exceeded those expectations in terms of box office performance. This is huge for the film industry and for struggling movie theater chains.
You and I, full disclosure, have not yet seen it.
Not yet.
BlueBag Technology senior producer Jackie Lopez says the soundtrack is fire, So that's really interesting. Deple one great, depl two. I think we agree on that, right. We are not film critics, but for Disney, parent of Marvel, this is important.
I think I think so too.
So we saw a huge influx of Marvel films that underperformed, they took a little break. This one came out it's putting Marvel and Disney back on top again. When it comes to box office performance.
What else was it up against. That's a big question because you have something like Twister, it'd already been.
Out, so with Twisters, we actually think it's going to take away audiences from Twisters, especially for IMAX showings. That's been a huge draw for Twisters. There's also going to be Imax showings from Deadpool and Wolverine, so we think this is going to continue to dominate, you know, inside Out too. We saw that drop as well. This is the film that everyone wants to see right now.
Bloomberg's Hanamella and New York on that New Entertainment beat.
What a great gig.
Another big story, Google streaming music player has long lagged behind Spotify, Apple, and Amazon in US market share, but now things are changing for YouTube music. Bloomberg lustin Car has a few thoughts on that in today's Tech Daily. The breaking headline news of which is you spend twelve hundred dollars a year on Google subscriptions, which is wild. But again, YouTube music's not one that I use either.
What have you found out?
You know, it's interesting I found out that I've actually been paying for YouTube Music this whole time, included in my YouTube Premium subscription. But like you, I've just never really thought of YouTube as a music services. I subscribed to Spotify. A lot of my friends use Apple Music or Amazon service that's included in prime. And what I found is they've sort of put together this pretty unique
service that's differentiated by video. You know, if you use YouTube Music, you get access to music videos, live concerts, a lot of podcasts, material that just regular people upload to the video website, and that influences your sort of music algorithm and the song recommendations you get. You know, Alphabed just last week was saying how much subscription growth they're seeing. That's one of the big drivers they're seeing
is from music. They actually earlier this year surpassed one hundred million subscribers for YouTube Premium and YouTube Music, so we're seeing a huge uptick. That's one of the areas of growth in the music space where it's Apple Music and some of the other providers are sort of lagging.
Right now, we're showing some pictures of what YouTube Music looks like, and I actually am a bit surprised. I knew very little about YouTube Music, it seems something very similar or akin to Spotify.
Well, it is a little bit similar in the sense that they do have a lot of the streaming tracks, but again what's different is that it's connected to the data that is sort of taken from you using the YouTube video website. So if you're searching something for YouTube and you come across sort of a late night talk show with a particular artist on that Let's say Bono is talking to ConA O'Brien, that will influence your songworkommendations on YouTube music, and suddenly you might see more Bono
or even more ConA O'Brien podcasts. So it's this weird amalgamation. And that is one thing that I think YouTube has always struggled with, what is its identity. It's this massive platform, but they've tried to carve out separate brands. They have YouTube TV, which is for pay television, and this is YouTube Music, which is a standalone app. But again it's trying to take advantage of some of that scale and sort of data that they've collected over the years from your viewing habits on YouTube.
Proper well, so real quick viewing habits you have to kind of accept that the consumer has different habits and different markets around the world. Right, where is the growth for YouTube music coming from? Not necessarily here in North America.
It's coming from a lot of emerging markets where YouTube is gigantic, just the video website is gigantic. And I think that's a key thing that that Google is really leading in. Of those one hundred million subscribers for YouTube subscriptions, they don't break down the difference between YouTube's ads free
video site that's one subscription, and the music player. The way they've sort of grown both of them is by merging them into this sort of all in one package that you can get just called the YouTube Premium plan, and that includes the music subscription. The thing is, you know, for me, I've been I subscribe to YouTube TV, Google Cloud Storage, YouTube Premium, but I still have not brought myself to use the music player. I still subscribe to Spotify, but I will say, just using it this past week,
it's pretty interesting. It's a lot different than what you see from Apple and Spotify and Amazon, and I think it's worth to go if you haven't tried it.
Theasting car, thank you very much. Mobile video editing app cap cut is gaining popularity, putting pressure on long time creative software leaders like Adobe. Capcut is owned by byte Dance, TikTok's parent company, meaning the threat to ban TikTok would mark the end for capcut in the US as well. That's bringing Bloomberg's Brady Fort He's been writing about this.
You look at a sense of hower data and starting twenty twenty pandemic it just usage of capcut is absolutely rocketed and taking it to a new level.
Yep.
So Adobe, maker of creative software like Photoshop, Premiere, all the others, they have long hoped to kind of get a piece of this more casual content creative market.
Cap Cuts been able to just go crazy with that.
And why is that because they're almost the same company as TikTok, right, And so it's here on TikTok and you see a certain video format, you could say, hey, let me recreate this. It is a format of editing that is so much simpler than what existed before it, and it's picked up like three hundred million monthly active users in a way that's pretty wild.
So the risk is by association and same parent company TikTok's fate, cap cuts is very closely tied to it.
Yeah, exactly right. I mean the bill.
We had a senior lawmaker confirmed to us, Yes, this wood can you know include cap cut.
Cap cut is on my byte Dance.
They share office space with TikTok in La, So yeah, all of the same risks apply. Will it be hard to find someone to buy cap cut?
Would bite Dance even be open to that? That's not clear.
What is clear is we have a lot of users that would probably be not too happy if this app.
Went poof interesting for Adobe day, I mean what they've struggled to why. And then also, you know, for cap cut, it would basically take their legs out from underneath them in this battle.
Well, it's a funny thing for Adobe because you might think, oh, well, if cap cut goes away, it's good for them, But not really, because TikTok is also a place where, you know, content creation is good for Adobe. The more social media there is, the more you need creative content creation apps. And so it's kind of a darned if you do, darned if you don't. For Adobe.
Here, as it relates to cap cuts existence.
Capcut making any money? Is it hundred bible.
Five million a year according to Censor Tower estimates, which is I mean, you know, that's a lot in terms of occurring revenue at this stage in the app's life.
That is no joke Blimdke's Brady Ford bringing this new name to us. But go into the story and look at the chart. I mean the growth relative to the to the peers or competition is absolutely wild.
What are you using right now?
I mean there's there's a frustration that text to video or is in particular, is not where we kind of want it to be. It has limitations, and that's part of the Adobe story as well.
Yeah.
Absolutely, And I think that the whole idea that text to videos what's gonna destroy the incumbents.
I think that's actually quite a bit further out.
Cap Cut is this interesting thing where it's somewhere in between, where it uses a lot of AI, uses a.
Lot of templates in between.
I mean, I used to make documentaries before I became more of a print journalist, and a lot of my friends from that era are starting to switch.
Off of apps like Adobe.
They're starting to go of these simpler things, and I think it's happening across the industry that the true text to video AI. It's out there, it's coming. But what's happening today is these simpler tools.
And you go back to the idea, if you're a creator on TikTok, well, why would you not use something this analogous like cap cart.
Yes, they've the stout parent as well.
Bloomberg's Brady Ford constantly unearthing things that I did not know about. That does it for this edition of Bloomberg Technology. Stay with us this week we will continue to break down the biggest technology earnings and my goodness, what a week it is in that context.
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