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

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

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

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

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

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

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

. >>> so the third season of netflix's hit tv show "stranger things" is streaming right now and netflix has gone all out in promoting it. if you don't know what i'm talking about, stick with me. claire sebastian is going to explain. they're making deals with dozens of brands to get the nostalgia baked in to viewers' minds. as promised, claire sebastian takes a look. >> reporter: start with a customer and, and some pecans, add whipped cream, caramel and finally a scoop of chocolate ice cream. the result, a sweet marketing opportunity. baskin robins upside down sundae is named after the creepy parallel universe in the netflix hit series "stranger things." >> upside down sundae. stranger things at happening the baskin robins. >> reporter: it's one of the new line of treats that the ice cream store is rolling out to cash in on the show's third season. which features a fictional ice cream product called scoops ahoy. it sees them take their fight against evil to the quintessential '80s hangout, the shopping mall. >> what did you think, we were just going to sit in my basement all day and play

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

netflix 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

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

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

and three netflix movies and

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

. >>> coming up we talked to the creators of a new netflix documentary that goes behind the scenes of facebook's biggest data scandal.>>> eavesdropping without your permission. the apple watch security flaw revealed today. >>> you don't see this every day. a pigeon family that put a bart project on hold >>> people put everything on the line and recently a tech giant has been coming under fire for what they are doing to protect your privacy are not doing. >> chief among them is facebook and a new netflix documentary goes behind the scenes of an infamous data scandal. we are joined now with a great hack. >> reporter: the ftc recently approved a record-breaking $5 billion fine against facebook for mishandling user data over the cambridge analytical scandal. this week netflix will debut a documentary that looks at that data breach and how it has come to symbolize the dark side of social media.>> who has seen an advertisement that has convinced you that your microphone is listening to your conversations?>> reporter: data is the world's most valuable asset according to the new netflix docum

the results at netflix. this is something that should be a concern for netflix shareholders moving forward with so much good competition on the arizon, led by disney=, much cheaper platform. the second issue being people switching from platform to platform, depending on what shows are on, canceling and then re-subscribing, which is not good for netflix. overall, netflix is a good company doing well, but the valuation is stretched for the coming competition. emily: shira, you are nodding. why? shira: i thick it is a good point, that the bull case on netflix is the default. it is the everything store for entertainment. if people decide, we are not that interested, we will turn it off for six months and switch to hbo or try out disney+ for a while, then i think netflix loses that position as being the subscription service people subscribe to and that never turn off. i think that is a big risk for netflix, particularly at this valuation. emily: next week, we have facebook, alphabet, amazon. i have a chart showin

at&t which owns warner media including hbo has pulled "friends" off netflix so it can run the show on its own streaming service which will be called hbo max and follows the recent announcement that nbc is pulling "the office" off netflix for the same reason it launches a new streaming service. "friends" and "the office" were the two most watched shows on netflix. >>> coming up, a home run controversy in the major leagues. >>> also ahead, important news for dog owners. a warning about a sugar substitute found in many consumer products and the danger for your pet. >>> but first the investigation into a cruise ship tragedy. a little girl falling to her death. why her family now blames the cruise line. it's tough to quit smoking cold turkey. so chantix can help you quit slow turkey. along with support, chantix is proven to help you quit. with chantix you can keep smoking at first and ease into quitting. chantix reduces the urge so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal s

charles: would that apply to netflix? would you be in netflix shares now on weakness? >> no, i would not and because i think the game has changed. we have disney coming online. a lot of other online providers. we even have netflix acknowledging the videogame crowd is competition. no, i don't think netflix is compelling buy right now, i see other players on the horizon taking its breadbasket away. charles: keith keith gerald. >> thanks, charles. charles: we have union pacific, railroad operator, rising because reporting earnings well ahead of what analysts were expecting. csx expanded losses after can youing their revenue. you have winners and losers in all the segments. semiconductors are having a pretty good day, riding the tail of the. >>> for puerto rico, mounting calls for the governor to resign. high tax rates of new jersey, new york, connecticut, they're suing to challenge the administration's salt policy. are more people about to flee for florida? senator rick scott is here with his take on all these headlines and more. that's next. ♪ as a doctor, i agree with

‘ film that has just dropped on netflix, everywhere, they are released, netflix, they're dropped. it is of released, netflix, they're dropped. it is of the great hack to about the harvesting of our data. they use these to create the political shocks of ourtime, trump these to create the political shocks of our time, trump and brexit. cambridge analytical come under the microscope here, other whistle—blowers are featured. you see is with the injustice of it, because all of us had been played by the state to harvest that has been going on. what if you dare, perhaps? there's nothing much you can do about it your data is probably being harvested as you watch and get netflix! thank you very much, jason, see you next week. enjoy your cinema going, bye—bye. the heat that may well be over, but more data has become available, which is now that temperatures reached 38.7 celsius at cambridge university botanic gardens. this is a professional recording, but if it becomes confirmed by the met office in the next days or weeks, it will become the uk's highest temperature ever. but this heatw

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

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

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

investors stream out of netflix. tradersall worldwide as start to consider an underwhelming earnings season. growth slows. raising doubts on future revenue. we will break down the numbers with the cfo. iran's foreign minister says europe needs to live by its commitments. offering slim hope of a breakthrough with the u.s.. get security by praying for it. you have to invest and do what is necessary. europeans need to take the necessary action. view shotas in my itself in the foot. hour away from the european open. take a look at the treasury yield. the brief jump the bulls were awarded has come back down. the 10 year yield continuing to fall back closer to two. we do have equity index futures. a relatively large drop. 0.6 percent. ftse futures down 0.4%. open.ld be a rough >> that does look like a rough open. haveve some that disappointed. the bigger picture from asia, one of worry. markets, down 0.7 percent. hong kong weaker, 0.6%. suggests risk aversion. data out of that economy. concerns around the earnings season.

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

stuart: what do you got on netflix? >> i've got my 16-year-old, 14- year-old, 12-year-old and 9- year-old are all glued to stranger things so netflix is doing great, the stock performance has been doing great and they have the ability, stuart to a, run ads, what's disney going to do a lot of competition coming in but people won't cancel netflix. stuart: and if they can raise the price, i bet your youngsters do not watch television do they? >> they don't. they really don't. stuart: all this. >> all here. stuart: on demand. >> speaking of disney, netflix sees stranger things as kind of like their next franchise, like may marvel or what was it star wars, so stranger things is a first step in that direction. stuart: it's a big deal? >> you mean the upside down world reference there before. you don't think they would lower the price given that disney is cheaper? >> netflix would lower their price? they might have to. i don't see a reason they need to. like the winner ultimately will be the consumer so we're going to get more

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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

"the office," all these years on netflix, "the office" was the secret weapon of netflix. it was most watched show. forget stranger things and all those things which is amazing. that was their show. they lost it. original programing. give kudos they saw this coming in. 2013 they started. when they paid $4.5 million a episode for "house of cards" we think they were crazy. now we think they were conservative. those originals stay with them in the future where ip determines everything. that is the real bottom line for wall street and everyone. melissa: absolutely. >> what your ip is, what your library is. what your content from the past is. that will determine future in the streaming wars. melissa: dominic patton, you're brilliant. very right. connell: celebration, one we saw here, that's it in new york today, the women's national soccer team parading across the city, bottom part of it, what we call the canyon of heroes here in new york. we used to have a lot of parade. we have the one for women's soccer team every four years. good for them of after their world cup history. o

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this is the set blow to netflix in the past month. remember a few weeks ago comcast announced that the office is moving to its streaming service. it's interesting to see these legacy companies, legacy media companies now become disrupters. not quite the order you expected it to have. >> so interesting. as a consumer obviously we love the choice you have another option beyond just netflix how many streaming services are we going to subscribe to to get all the service i love. >> it ends up being the cost of cable. >> lower your bill i was thinking i have netflix, i don't have google. i want to watch some google. i add that what do i do spend so much money. >> thank you so much >>> turning to sports. fresh off winning the world cup title, the u.s. women's national soccer team will be getting a hero's welcome in new york city. nbc's jay gray camping overnight along the parade route i hope you had plenty of coffee. good morning, jay. >> reporter: good morning, courtney not a coffee drinker, but you don't need it today. very exciting. i was

i think this is something netflix has been preparing for. they are pretty aggressive in terms of trying to track the best content. think it's kind of a big thing for the outlook. that is a big reason why i think you start to burn through $3.5 billion of free cash flow every year. that being said, the next three to five years i think there is a clear line of sight in our view for the company to turn free cash flow positive as they continue to leverage the content spending and continue to grow subscribers, especially with a lot of international markets still relatively underpenetrated. vonnie: the stock is down 11% right now, the worst performer in the s&p 500 today. analyst, thanka you for joining. let's check in now on the first word news. york, a: here in new judge decides today whether financier jeffrey epstein will remain in jail. epstein has been locked up since he was arrested july 6 on sex trafficking charges. prosecutors say epstein is a flight risk and an unrepentant criminal. sayyoto, japan, authorities 30 people died in a suspected

netflix actually lost a net 126,000 subscribers here in the united states. it all comes as competitors pull popular content from netflix, like "friends" for rival streaming services. shares dropped as much as 12% on the news after months of steady gains. >>> bombshell twist in the kevin spacey groping case. a sexual assault charge suddenly dropped against the actor. at the moment, the prosecutor's case unraveled. >>> a popular san francisco neighborhood getting a car free nape makeover. the new concept to turn a road into a public space. >>> fed up with big sur tourists, vandals take out the rage with spray paint. the hunt to track them down. >>> i am sure the weather plays a big role in attracting them as we have plenty of blue skies and yet there are changes ahead. tomorrow will be a little bit different from today. we will look ahead into the weekend forecast when we come back. wear it's no ordinary day for our family at denny's. it's crepe day. a family tradition we started about 22 minutes ago and now we can continue that tradition at home with denny's

we have, you know, look single netflix bull show for today we haven't had one netflix bull. now that they've leaked this deal to deirdre's point timing is probably interesting with eddie murphy where does this go for now? we know it's all about content. does this make any difference? >> ashley, i think me and you could get in that new corvette and tell a few jokes for $70 million it doesn't sound bad , but again, where is netflix getting the money to potentially pay eddie murphy? they're not cash flow positive. they're borrowing. they will burn through $3.5 billion of cash in 2019, so unlike their peers, if you look at disney, at&t, they're positive cash flow and rich in cash, they have the ability to go out and do new productions so i think netflix is coming from behind on this. they're going to really have to improve their user situation or else wall street will have to figure out how they justify these $400 price targets so i'm hold on netflix until i see things improve, but -- ashley: you don't sound very positive but listen it's interesting if you go back the last two o

lauren: oh, netflix. some of the subscribers mourning the upcoming loss of friends to warner media's hbo max service about to launch. all signs pointing to a streaming war that is only just beginning to heat up. cheryl: at the big sun valley media conference yesterday barry diller likeened the battle of the streamers to an arms race. let's bring in brett larson. it was so interesting what he said. he basically said netflix isn't going to be taken off the top spot but he said the one threat to netflix is disney. i thought that was really interesting. >> disney plus, which is coming out later this year, early next year, the price point that they gave shocked everybody. they're going to be around $7 a month. and it's the disney library. we're talking about star wars, the simpsons, family guy, you name it, pretty much disney owns it. anything you watch on abc, espn sports, it will be on disney plus. so it's looking more and more like we're going to go from the cable model where we're paying hundreds of dollar

for example, netflix. it's not really a barometer of what's happening in the economy, more about that business or you look at microsoft reporting, ibm had some trouble with the cloud, maybe microsoft will do better. stories like that are less troublesome than broader economic stories that might indicate, you know, we're in for a bit of a slump. maria: ken langone just told me maybe we will grow 2%, 2.5% this second half of the year. it's still a very good number. most people are expecting a little bit of slowdown. tom? >> two thoughts. one is, what an hour of television. ken langone, mitch mcconnell, lot of news made. that was great. then there's a lot being paid attention to trump and his rally and what he's saying and this back-and-forth. meanwhile, we talked about it a little, what's going on in congress right now with the debt ceiling and getting a deal done and actually congress working, very important. keep an eye on these negotiations between trump and pelosi. you heard mcconnell say it's really bet

smg maybe not the time to netflix today barely up. real on microsoft cloud computing quarter not sure what else to say other than they own linked in the and skype and they've got businesses, you know xbox anything you don't like this morning. >> what i don't like that is being talked ab clear beneficiary of the tax cut for corporations because a lot of this money that is saved by corporation is back in the business and through software and so spending money in the cloud upgrading windows upgrade office, you saw rise in pc shipment of all things over last year so it is -- it microsoft is a good story for a company to grow that much and expect double digit revenue in earnings groat for next year that's spectacular. smg that's what they forecast cfo did her name on that one. mike lee great to see you lauren over to you. >> house democrats a bill to raise minimum wage to 15 an hour more than double the current rate it would be fazed in over six year period but allow for increases to stop if jobs are lost as a result and you remember the c

problems for netflix may have only just begun. >> stranger things are happening at netflix. >> i don't know what that means. >> streaming giant revealed over the last three months the number of subscribers in the u.s. dropped for the first time in eight years. adding insult to injury, netflix only added 2.7 million new users outside the u.s. far below the 5 million the company expected. the problem? some say could have to do with the price hike back in may when the cost to stream your favorite netflix shows went up to $13 a month. the premium plan rising to $16. the bad news comes as new competition is gearing up to enter the ring. disney plus launches this fall staffed with its own star power. "star wars," marvel and, of course, all the disney animated hits. >> hands down this is the best day of my life. >> tech giant apple is getting in on the streaming game too with the new apple tv plus. stars are all putting out shows on new platforms this fall. "friends" will still be there for you just not on netflix. you can fine it on hbo max which is rolling out next year joining fan favorite

make a difference to netflix's trajectory >> i don't think so. >> here we are now, you have these new mega media mergers that have gone through what needs to happen now what happens to the smaller players? >> well, who is a smaller player >> well, cbs and viacom. you have lions gate. >> i've never thought, don't believe, that it takes size really because you have -- if you're making content, there are so many buyers, so you don't need to have size, you just need to have talent and some energy, and you can do well. can you build a big empire unlikely but, so i don't think that the smaller players are necessarily endangered all of broadcasting is endangered because what's happened with streaming and with other services is the only people who are along to watch commercials are people who can't afford to buy the goods that are being sold so, that's an existential long-term issue. but it's a fascinating time because it truly is, it is a giant arms race. so, when you have a giant arms race, it really is kind of last dollar in. >> and i want to ask you about these other platforms you mention

netflix have over 10 million amazon prime has 5 million. what they are holding their hopes on is that the number of homes that have got more than one of these streaming services, about 5 million homes in the uk, it is growing at about 20%, so they think britbox will probably become an additional service to one of the streaming services you already have. talk to us about the price point, £5.99, do you think that's going to appeal to enough people? well, it's the same as amazon prime's price point, it is a little bit cheaper than netflix. i think they have pitched it about right. i don't think they think it's going to be something that's going to ta ke going to be something that's going to take on or take over from netflix. it is probably going to run alongside and will probably end up being low millions of subscribers. the thing is the bbc and itv can't really not do this. it is something they have got to get into and try and drive as hard as they can. i believe they have already got 20% of people aware of this brand of britbox and they wil

. >>> bad news for netflix. for the first time in nearly a decade the number of people subscribing to netflix is down. the company lost more than 126,000 subscribers over the past three months. companies say rival streaming services are coming online and taking content away and off of netflix. >>> okay. how hot are the giants and a's? hot enough for many fans. are you thinking to jinx it. >> no jinxing it. we're back in a moment. my experience with usaa has been excellent. 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. itit's crepe day.day for our family at denny's. ♪ a family tradition we sta

we couldn't get to netflix. i will let the audience know, the last four times they reported they beat but only once was the stock up of the last time it was up 6%. after that it was down 7%, down 4%, down 10%. we'll have full coverage of netflix and other earnings after the bell, folks. hold on to your seats. courtney, gary, jennifer, fantastic conversation. thank you all. appreciate it. >> thanks for having us. charles: before we go to break, check out this new study. being a firefighter is the most satisfying job to have, this according to my plan.com glass door survey. the job with the least satisfaction? clerk, sorters, tv reporters. i couldn't help it. cpb acting director mark morgan that congress finally do something about the border crisis. new survey find six in 10 mexicans are saying migrants are a burden on their country. can anything be done? >> congress needs to act on a bipartisan way to pass meaningful legislation to address the very real loopholes in our asylum that is causing this crisis. with al

netflix partnering with about 75 brands for the launch. a marketing blitz featuring everything from nike to burger king to the chicago cubs. >> every network, every website, everyone is looking for those two hours that you have between the time you get home, put the kid to bed, finish dinner and watch something. anything that netflix can do to grow brand recognition and make you remember i should finish the season of stranger things is a benefit. >> if you love the tv show "stranger things," boy have we got a lego set for you. >> reporter: many of the brand tie ins tie in the nostalgia the show is known for. they convinced coke to release new coke after "stranger things" decided to incorporate into its plot. no money changed hands on the coke deal or many of the show's other branding deals. instead netflix is allowing companies to use the "stranger things" brand in return for a commitment to the show. so mhut't nec about brand awareness knen autntityand nostalgia.to essly that was part of the vision for "stranger things" from the start. of