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

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

are behind especially if you look at subscriber growth globally netflix only added the bottom half this is scriver as they were looking for and here in the united states there was even a decrease of subscribers by about 130000 and all of them before the real competition is going to kick in by the end of next year and this year and next year when a lot of the big media companies like walt disney will stop their own streaming services and the stock for a netflix and 1st initial after our reaction was down by a good 12 percent streaming market there in the u.s. again a lot tighter quarter with the latest in new york thank you the international monetary fund has warned that international trade is slowing the caution comes as the i.m.f. which coordinates global monetary policy releases its annual look at trade not surprisingly it's urging nations to avoid further conflict. this year's external sector report shows that the world is doing less business with itself confused with the i.m.f. chief economist explain we are seeing global growth global trade grew old slow which tells you that this i

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

least for now is put on hold and you have to ask you about another one of those big american firms netflix it shares were punished after reporting lower than expected subscriber numbers and its quarterly report briefly why the strong reaction. you're not pretty at all and some analysts here on wall street are saying that this quarter actually could be a sign that the best days are for netflix are behind them especially if you look at subscriber growth globally netflix only added to the subscribers there were looking for and here in the united states there was even a decrease of subscribers by about 130000 and all of that before the real competition is going to kick in by the end of next year and this year and next year when a lot of the big media companies like walt disney will start their own streaming services and the stock for a netflix and 1st initial after our reaction was down by a good 12 percent while streaming market there in the u.s. getting a lot tighter quarter with the latest in new york thank you the international monetary fund has warned that international trade is slowing a

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

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-

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

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

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

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

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

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

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'

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

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

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

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 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.

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

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

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

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

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

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

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

will it work >>> and netflix investors not chill. shares tanking more than 10% after the company posted weak subscriber growth. will the loss of "friends" and "the office" spell doom for stngerthneli ras ings have happened that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phon

i am sometimes negative on netflix, and people call me on it. but it is because i just think the future will be pretty tough for them. they have made some wise decisions in terms of the money they have invested the past few years in terms of original content. and obviously, "stranger things" is an example of that. obviously there's still previous titles, like "orange is the new black" that have done well for them. but the problem is it is not just "friends." it is original movies from disney. the fox library that disney purchased. it is the new original content from apple. i think they have never had so much competition in terms of known content that they have previously licensed as well as original content that will be pulled off their platform and go to competing platforms. emily: how does netflix fill the void? is it all about original content? or can they fill it with original content? >> one thing netflix has benefited from even with the amount of money they're spending on original content is the first mover advantage they have had in terms

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

netflix reporting after the bell today. we talked about it last night on "fast money. you own it >> hammered that >> and tom rogers loved it >> of course he did. >> he said if he had a choice he'd pick netflix. >> boots what kiit's about what growth they have internationally. the obvious for me is international growth we talk about content all the time you'll not be able to see it in the numbers, but how are they going to deal with losing some of the content they have, and how are they going to replace that that's going to be very big. if they can continue to do what they're doing, which is expand their content, there is no reason why netflix can't go a lot higher, a lot faster does it trade at a high multiple absolutely but they have a moete similar t what we talk about facebook. facebook has a moat around them, netflix has a moat around them as well. >> what i'm seeing right now is big up side call buying at the 385 strike the stock 365-ish. somebody is looking for about a $20 pop in the after hours or better that they'd be able to take advantage of, if it does repor

these are big hits presumably for netflix. >> they are and they help. i know people are still watching "breaking bad" on netflix, that's not their property. if you're a bull, the great news is when you see season 3 of "stranger things" come along so they broke every record they said 18 million households have watched all eight episodes, have gotten through the season. >> there's only eight you can bing it over a weekend. >> there's only three, four, five shows like "stranger things" and then a huge catalog of mediocre stuff, which i'm not sure it's "friends." once you got through your season of "house of cards". >> you're right. that's a power law that's a force of nature, not anything that netflix can do anything about you're not going to have 50 amazing shows on one network because the consumer can only watch so many, me i can watch millions of hours. but you're not going to have a million hits the question is how much mileage do you get out of the hits you have and netflix has done an amazing job here and internationally capitalizing when they strike

netflix actuallysu lost 130,000 cribers. the company is saying it forecasts more in regions of price increases, blaming the shortfall on the lack of big shows in second quarter. ceo reed hastings saying in his letter to shareholdershe expect subscribers in the u.s. to return to more typical growth in the third quarter starting with shows like "stranger things." netflix projecting the addition of 7 million subscribers in the third quarter, higher than project evidence. for "nighy business report", i'm julia boorstin in los angeles. >>> investors had a different reaction to results from dow components ibm. the company reported better than expected second quarter earnings, even as f revenl from a year ago. for the quarter, weakness in its legacy business was offset by growth in its cloud operations and investors were okay with it, sending it higherrs in after h trading. josh lipton has the details. >> one area of focus for ibn investors, those newer technologies like cloud and analytics, though are grouped together in the compa

if netflix ran ads. jeff, that's 25% saying -- i thought it would be more. susan: it's skewed. they are asking the wrong question. they didn't tell them the dollar difference. for a dollar less, 23% would say yes. $3 more, 41% would say that's not a bad deal. >> i'm going to go against what a lot of people are going to say with this. i think it's a good thing for netflix to do it. i think they should do it. i think a lot of people want to be on netflix and are willing to be on for a lower price if they have to endure a few commercials. i want to see how this pans out. i think there's going to be a lot of people who are going to opt for the lowest cost. a lot of people on netflix are the young people and some of those people with big college loans and subprime car loans. they need to save money. susan: you think $3 a month will make a difference? ashley: i don't know. keith, would you pay a little extra to continue for an ad-free netflix? >> that's the interesting question to me. i would pay more for an a

david: let's talk about netflix. because there is a story out there that they are actually thinking of putting ads on, to which i said wait a minute, i'm paying for netflix. i don't want to have to pay to watch ads. what's the story on that? >> well, i think it's actually very likely and i think it's likely soon. here's why. when disney announced disney plus pricing, it was $6.99. david: sounds like a great deal. >> everyone was like this is amazing, it's half the price of netflix. my response is, there will be ads. so they make $6.99 on the subscription, then they make another $7 per household on the ads. so now netflix looks twice as expensive. i think it's likely they offer ad support. david: disney knocked down that barrier because they will be putting ads on and netflix will pick it up. they must be anticipating, some people say i'm quitting, i'm not going to pay you my monthly fee plus watching ads. >> if you're paying $14, which i think is the average price point right now, that version won't have ads. it's on

wonderful with an accent. >> that's right. >>> we'll look at the case for netflix. sy know vince holds more than 16,000 shares a 5.8 million position in netflix and also with his point of view, "shark tank" host, kevin o'leary. dan, let's start with you. why don't you lay out the bull case for netflix. >> well, i think the big bull case is what you talked about before sheer size right now, netflix as you have talked about has 150 million subscribers at the current rate of their ads which is roughly about 5 million per quarter. by 2020, looking at 250 million subscribers which is a behemoth when you compare it to the rivals disney, fox, probably 60 to 90 million. you have got 100 million prime users. we don't know how many on amazon watch the shows, so just from a size perspective, i think that's where netflix has a tremendous advantage over some of these other companies that are getting bogged in the streaming side. >> kevin, your take? >> here's what i think is happening in front of our eyes disney stock was dead money, i'm a shareholder, for five years, sitting an

subscribers for netflix. . not having the growth people anticipated not really a surprise and i think -- you know "the wall street journal" reuters everybody is reporting coming streaming war talked about this last week there's so many options that are coming on market in next year. we're going to have disney plus, apple streaming services coming this fall. already have hugh lieu and things are coming out so netflix has competition seems as though may or may not be prepared to handle all of that right now they've sort of become this de facto streaming service. you can go there, get episodes of friends you can get star trek all of these programs from a variety of sources. but now all of those sources are saying hey hold on a second we want that stuff become and launch our streaming platform. >> showing viewers numbers up here but the big eyes on the show yesterday. i'm l watching international subscribe or growth missed estimates but they trieded to raise prices in the caribbean and parts of south america lath o

look at netflix, ouch. they lost about 130,000 subscribers, in america, first time in eight years they lost paid domestic customers. look at the stock. it is down 11%. that is $40 lower for netflix. it is at 322. >>> in the news today iran says it captured a foreign tanker it accused of smuggling oil in the straits of hormuz. tensions in the middle east escalating. general jack keane is on that. "el chapo" sentenced to life in prison. senator ted cruz says seize the fortune, use it to help build the wall. not a bad idea. >>> we have this, actor chris pratt called a white supremacist wearing a shirt showing the gadsen flag? is that the, that is "don't tread on me." we will set the record straight about that historical flag along with the betsy ross flag later this hour. ♪ this is the couple who wanted to get away who used expedia to book the vacation rental which led to the discovery that sometimes a little down time can lift you right up. expedia. everything you need to go. content on their endless quest,

this may be on netflix. "tmz" says they're discussing a 70 million-dollar deal. after netflix's stock tanked announced 100,000 subscribers were lost in the united states. murphy hasn't done standup in years. he did tease a possible return on jerry seinfeld's cars, comedians getting coffee in cars which airs on netflix. >>> iran seize as uk tanker. they also deny that the u.s. shot down one of its drones. is the u.n. giving credence to this rogue nation? we'll be right back. has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today. ♪ can't see what it is yet.re? what is that? that's a blazer? t

thanks for netflix,n and others ramping up spending. all of this raising the bar for the studios. they need bigger brands and bigger budgets for their movies to stick out from the clutter. the studio that is consistently leave consumers reason to the house and buy tickets is llsney. just broken the time annual box office record and it is only july.bo bolstered by "lion king," the studio set a new record forbihe ggest studio growth in a year. $7.7 billion. disney has the five biggest films of 2019. >> i won't let anything happen to her. >> and disney's dominance is expected to kinze with fn 2 in november and in december "star wars" the rise of sky walker both expected to hit a billion dollars. >> they do dominate. but in the entertainment market i don't think you feel - or people's time market, i don't know if it is the entertainment market any iore,hink they have plenty of competitors and lots of choices just making contenteople love. the question is how much higher the bar will be for the movie industry. when theedia giants give consumers more options for new excluseontent at hom

massively, the thing is the crown is made by netflix and that's about as british as he can get, the netflix is doing many co—productions with bbc, dracula was recently announced, and there are some pictures there. as series after series they tank the class, that investment, but what they're going to be doing is absolutely extraordinary for british film industry, it's a vote of confidence. that raises a question like saying it's great and it is, but is it just like saying it's great and it is, but is itjust concentrating and shepherding what they were doing a nyway shepherding what they were doing anyway and by different places and other locations. truth of the matter is, they wanted a european production had been they chose the ukfor production had been they chose the uk for that which is fantastic for us, they got bored he shows running and even those shows and still weren't all fitting in shepherding, they will go up dealership in ireland and many other places, and we are actually working on developing stadium capacity across the nation than the regions because there is talent everywher