In hong kong, how news and rumors are playing a part in protests. And, market share, buyers turn teslas toyotas for model 3. First, to our top story. The launch of disneys streaming technicalt with some glitches and crashes, but still, buzzy plus generated across social media. Rickore, we are joined by springfield and bloombergs lucas shaw. Are the technical glitches perhaps a good sign, showing that demand exceeded expectation . Rick i have no idea. The reality is that technical glitches are sort of commonplace in big launches. You side with hbo and game of thrones. Maybe it was demand driven. Who really knows. It is irrelevant in the scheme of this is disneys longterm strategy. Bob iger has thrown down the gauntlet. It is not even just about disney plus. Fx content. As long as these technical issues are not ongoing, as long as you are not still hearing about technical issues 2, 3 weeks from now, no one will hear about the issues this morning. Taylor did disney cement itself as a clear, formidable competitor to netflix and the like . Lucas i think so, and it has for a long time now. If you ask people in the entertainment business, silicon valley, wall street, most have viewed disney plus as the most competitive of the new services. Max are muchbo further out. Disney is the Largest Entertainment Company in the world. From fox. Ot of assets the real question moving forward will be how many of these streaming services can the market tolerate . Right now, we have hulu, amazon, netflix. Most expect that disney plus will be an additive to netflix. But if it slows the growth of new subscribers to netflix at all, that is bad news for the company and investors. Taylor rick, how do you see disney in the context of the broader streaming wars . Rick i think about it differently. These spend 45, 50 from top streaming services. Upwards of 100 or more for comcast, charter spectrum, those bundles are going away. Consumers are giving up on those bundles. I think seeing all of this great content from disney plus, apple it iss, netflix, amazon, just making it easier and easier to cut the cord. That frees up a tremendous amount of wallet. For me, this is like adding fuel to a fire that is already burning and will make it so much easier to cut the cord going forward. Today is like a real watershed moment. Look, the cable bundles in the past, we will put all our best assets onto streaming and whatever happens in the bundle, so be it. It will be a tough place for espn in their future but i think disney is clearly telling you that they know the bundle is dead or clearly dying, and they have to move forward. Taylor you talk about the cannibalization of traditional subscriptions. Dan ives said 10 of netflixs base could be at risk. Do you have figures of whether there is cannibalization going on at netflix and the competitors . Is one of the most absurd comments i have ever heard. Consumers want to stream. You are not choosing between netflix and disney plus. If you are not a sports fan, you will give up on cable service. If you want to watch the crown this week, disney plus does not satisfy that. If you want to watch back episodes of friends, you need hbo max. People have had hbo for years. Hbo has 34 million subscribers today. People are not saying, i have netflix, i dont need hbo anymore. These will coexist the same way hbo and showtime have coexisted. What does the consumer want . If you want stranger things, if you want the crown, if you want the irishman, you have to have netflix. Delorean men mandolorian, you need disney plus. The entertainment bundle, i think people will be looking for where these dollars and subscribers come from. For 2, 34e appetite subscription services. 2, 3, 4 subscription services. Lucas it is hard to know how much people are willing to pay for because it depends how they balance the Different Things they are spending. The average consumer may not know how much they are spending specifically on cable. They may not treat their amazon subscription as a video subscription, they are really paying for prime. I do think rick is overstating the decline of cable a little bit. He is right that this is a watershed moment, signaling that internet is the future, but even has said thatflix the decline of cable will be slow and steady. Even though it is accelerating, you still have many households in the u. S. And worldwide still paying. You will have consumers who have to make a choice. Sports fans and older consumers who want to keep watching live television. Atlor you take a look Companies Like cbs, reporting lower profit, and urinalysis, do you just assume further profit erosion . Rick streaming is expensive. Look at disney stock. September 2020, expectations were 8. 33. In may of 2018, for 2020, that is what people were forecasting. Aboutk it is down to 5. 60. So, this is an acknowledgment, getting into the streaming wars, this is a longterm game. This is really hard. You look at disney, i got up at 6 00 a. M. This morning, i watched the First Episode of mandalorian, i enjoyed it but it was definitely for a diehard star wars fan. I cant watch episode two until friday, i cant watch episode three until the following friday. In terms of new and fresh content to watch, there is not a lot to keep me busy. That is why i think you will have to see disney invest heavily in these services. Streaming Services Require you to create addicts. You have to give people a reason to come back every day for hours at a time. Netflix has done a great job of that. Now it is on everyone to follow that and create addicts. It is very easy in the streaming world to hit cancel or pause, and come back later. Easy to gome really on and off in the digital world. Taylor Rick Springfield and lucas shaw, thank you both for joining us. Seeks up, music video after tik a new u. S. Policy chief. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg gap, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. Taylor microsoft is among the plaintiffs in a case reviewed by the u. S. Supreme Court Tuesday over the socalled daca program. The Software Giant is defending its employees who were brought to the u. S. As undocumented children. The deferred action for Childhood Arrivals Program shields nearly 700,000 qualified young immigrants who are in the u. S. Illegally, from deportation. It is being challenged by the trump administration. Microsoft president brad smith argues that the affected immigrants, were called dreamers, are an essential source of talent that microsoft depends on. Other Companies Like google, apple, and amazon have filed legal documents saying that ending dhaka will hurt the u. S. Economy. Will hurt the u. S. Economy. Is being investigated for National ConsentNational Security concerns but they are we are joined by a data privacy and security lawyer, formerly a Legal Advisor at the National Security council. Also with us, ben brody. Has been the reaction from the stepped up lobbying efforts in d. C. . Captured it of right as it is starting. They are bringing on a new u. S. Policy chief, bolstering their m, and adding alcide adding outside consultants. When they bring those consultants to the hill and say, we are an American Company and we dont take directions from beijing. It is worth mentioning that this is kind of bluechip representation and i think they are putting up at least a good fight as these tensions rampup. Iflor the key issue here is tiktok is a u. S. Company or Chinese Company . Cfiust of the new regulations, whether investors have access to nonpublic information about data. There are broader concerns about potentially having access to the information by foreign powers. John what is the answer to that question . If china wants data, once information, what tiktok be required to turn over that information to beijing . John that is the concern. There are ways to potentially mitigate that. One of the ways is keeping the data within the United States. China has been very aggressive at wanting to get access and requiring companies in china to participate. Taylor ben, what is your reaction to that . The key issue in d. C. Over data privacy, over turning over data to beijing from u. S. Users . Sort of the key issue they are looking at. Senator josh hawley, last week, he held a hearing where he excoriated facebook. He talked about communist Party Officials kicking down the door and amending data. He said, parents in the u. S. , if you dont know about tiktok, your kids do, and you should. It is a concern animating not just the republican side of the aisle. Since my story went up, Chuck Schumer sent a letter to the army and said there is concern that you are trying to recruit teens on tiktok, trying to recruit young people on this platform where they are flocking by the millions. He said, i want you to reconsider and not do it because it could be a National Security threat. Taylor we have heard from others from Tech Companies, namely Mark Zuckerberg at facebook. Given your history on the National Security council, a worried about you how worried are you about chinese tech dominance . Issues withare the a lot the concerns at the National Security council. Technology is the new frontier. Whether it is data or Information Communications technology, i think you are fius, supplynd in c chain, taking a strong look on how to compete with china. About it is not only turning over data but a lot of this, as Mark Zuckerberg was pointing out, is about free speech. What are you hearing about concerns of chinese tech dominance operating basically on concerns where free speech may not be allowed. Interestingeally because you hear a lot from legislators here in washington, d. C. , about how they want american tech platforms to take certain things down. ,et, our chinese counterparts chinese platforms, the concern is are they taking down too much . Have they gone beyond content moderation and Community Standards into what we would consider censorship. Mark zuckerberg sort of hinted that the protesters in hong kong were being censored. It is unclear to me if they are. N tiktok it is important to say here that facebook views tiktok as a major competition for users, viewers, particularly young people. He is not only stoking a National Security concern but also concerned about a competitor, and this was part of the reason for the reshuffle. This morning, there was a lot of concern that tiktok was working with lobbyists who were a little bit too close to facebook. Taylor john, we have seen more us review. Fi is that warranted . I certainly think so. Data is a bigger part of society and you have Companies Across the world. Trying to balance the security imperatives and economic priorities will be challenging. What you are seeing, whether it or other National Security reviews, a hard look at Data Companies and other information technologies. Dermody, and bloombergs ben brody, thank you for joining. Coming up, instagram picks up the tab for some celebrity videos that comes at a price. What they can and cannot say. This is bloomberg. Facebook is bundling all of its payment tools into a single platform. Facebook pay will Group Existing the appoptions across into one product. This is separate from its calibra app, which will be storing and collecting its Digital Currency libra. Facebook trying to jumpstart its little used instagram tv. To do so, it will fund celebrities as long as they dont say anything about politics or elections. This comes after backlash for facebooks decision to allow politicians to lie in advertisements on the site. My first thought was, good, because i dont care what they have to say about politics. Is that what is going on here . It is a really interesting policy for these creators to not be able to talk about clinical youes as facebook makes a about political issues as facebook makes a huge deal about not censoring political ads it is not just that they cant talk about elections, they also cant talk about anything facebook considers a political issue. They cant talk about climate change, guns, immigration, even health policy. All these things that are just part of the general discussion that you would expect someone to want to have if they get their production costs paid for by instagram. Taylor why . Sarah instagram says there is a big difference between letting them talk about these things and paying them to talk about these things. Facebook has a new stab where they are paying all sorts of has a news tab where they are paying all sorts of groups from talking about politics all the time. The understanding that these are all under the same umbrella. Taylor i wonder if this is , that facebook doesnt appear to be endorsing that persons views . Sarah if they were to pay for content that becomes political in any direction, then people could say instagram paid to have this video made. Taylor another story, facebook bundling all of its payment apps into facebook pay. Does this further antagonize regulators who think this is may be a defense mechanism so that facebook is harder to break up . There is something to be said for facebook pay across all of those services, whether it is whatsapp, instagram, facebook, messenger. This goes back to what i was saying earlier that the Company Wants to make it very clear that they own all of these properties. What they have found out is that the more people understand that facebook owns whatsapp and instagram, they have more favorable opinions of facebook. Regulators are looking that and saying, you are in the middle of an antitrust investigation, you are trying to more closely integrate the products at this point looks like a political move. Taylor another story as well, facebook is the gift that keeps on giving in the news world. Facebook has been accused in a lawsuit of censorship. Sarah facebook has been trying to apply its policies so there is no harm, no attacks on policies that should be protected. However, their policies are not universally applied. There is a lot of selectivity. Generally, facebook tends to act when there is public outcry. This guy, his post got taken down, other peoples havent. This lawsuit will bring to light a lot of the editorial decisions. Whether that is fairly applied across all of its users. Taylor thank you. People online groups are widening the division in a city already in turmoil. This is bloomberg. Bloombergsow join daybreak australia to bring you the latest in tech news. Ahns new york and heidi is new york and heidis in sydney. Lets look at the stories of the day. Germanys biggest tech ipo in 19 years is on the path redeeming itself after a rough public debut. At its listing price after it fell 10 in the first two days of trading in october. This comes after the first public earnings post at 39 revenue jumped from a year ago. Startupuck delivery app has raised one of the largest initial rounds of capital for startup in the region. It bills itself as an uber for trucks has raised 23 million. The round was led by a half billion dollars saudi tech vc fund that previously invested in meter eastern and middle eastern ridehailing company. Tencent is now 90 billion behind rival alibaba in market cap. This comes after a ninemonth season gain approvals. A chinese economic slowdown and the possibility it will have to suspend airing nba games in china. Last year it paid 1. 5 billion for though exclusive streaming rights, but an nba teams executive triggered a media blackout in china and after tweeting support for the prodemocracy protests. Those of the top google the top bloomberg tech stories. Heidi as hong kong antigovernment protest continue in the 23rd straight week, the city is being flooded with online fake news and misinformation from both sides of the political divide. In the last one he four hours alone, authorities have denied rumors they ordered police to fire on protesters at will and they would use Emergency Powers to shut down Financial Markets and many more. Joining us to discuss in hong kong, shelley has been on this story. You are already seeing a situation, a cycle where violence is begetting violence and unrest in hong kong day after day. And the fake news online is really a major contributor to that. Fake news is obviously a problem around the world, but it is really super visceral in hong kong where you will see an event happen and then almost immediately you will see conspiracy theories pop up online and then that will just fuel the anger and the angst from protesters and prochina supporters as well who are coming out into the streets. See the direct line from fake news that happens online into the streets of hong kong. Taylor who are the culprits . Who are these Tech Companies that are playing a role in spreading the fake news that have not yet been held accountable . Shelly it is happening on every platform and from most sides of the political divide in hong kong. Telegram,eing this on on the local channel here, which is like a red it back in the u. S. And you are also increasingly seeing it on facebook and youtube. A lot of these companies are taking steps to remove some of these fake accounts, but a lot of these accounts are actually real people who are spreading rumors and conspiracy theories. So its not necessarily a big Disinformation Campaign like weve seen outofstate actors like china or russia, but just videos and pictures that might be taken out of context and then spread around in a different context. Of legal framework, is there anything specifically there to address the dissemination of fake news . Shelly we have seen lawmakers and police come out and say please dont believe this rumor, dont believe this rumor, our ban