Market share, buyers trade in bmws and toyotas for teslas model 3. More on bloomberg surveys. More on elon musk had car. First, to our top story. The launch of disneys streaming was streaming service was met with some technical glitches and crashes, but still, disney plus generated excitement and buzz all over social media. Adding to the continued streaming wars. For more, we are joined by Rick Springfield and bloombergs lucas shaw. Who covers the streaming wars for us. Are the technical glitches perhaps a good sign, showing that demand exceeded expectation . Rick honestly, i have no idea. The reality is that technical glitches are sort of commonplace in big launches. You have seen it with hbo and game of thrones. You never like to see these things, its unfortunate for disney. 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. This is the future of the company. Its streaming. It is not even just about disney plus. He is moving fx content. Hours after it is on television, on your cable television, it will be on hulu now. It is leaving the bundle issue in the past. As long as these technical issues are not ongoing, as long as you are not still hearing about technical issues, no one will remember about these issues this morning. Taylor the disney cement itself as a clear, formidable competitor to netflix in the streaming wars . Cas if you ask people in hollywood at around the entertainment business, in silicon valley, and especially on wall street, most have viewed disney plus as the most competitive of the new services. Apple tv plus just does not have the same library. Peacock and hbo max are much further out. Disney is the Largest Entertainment Company in the world. Its movie studio is dominated by adding a lot of assets from fox. It has some of the best tv shows in the world. The real question moving forward will be how many of these streaming services can the market tolerate . Right now, we have hulu, amazon, and netflix. With netflix being the clear leader. Most expect that disney plus will be an additive to netflix. That people will be able to pay for both. But if it slows the growth of new subscribers to netflix at all, that is bad news for the company and investors. Rich, how do you see disney in the context of the broader streaming wars . Rich i think about it differently. People spend 45, 50 from these top streaming services. Upwards of 100 or more for comcast or charter spectrum, those bundles are going to weigh in consumers are giving up on the cord cutting at record paces. Contentll of this great from disney , apple tv plus, netflix, amazon, soon peacock from nbc, its 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 started burning and this will make it that much easier to cut the cord going forward. I think this is sort of the industry. Today is like a real watershed moment. This is disney saying, the cable bundle is in the past, this is Disney Streaming, we will put all our best assets onto streaming and whatever happens to the bundle, so be it. It will be a tough place for espn and 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 rich, you talk about that cannibalization of traditional subscriptions. Dan ives said 10 of netflixs base could be at risk. With apple and disney. Do you have figures of whether there is cannibalization going on at netflix and the competitors . The morek it is one of absurd comments i have heard. The reality is, Consumers Want to stream. They want to stream lots of stuff. These are not replacement products. You are not choosing between netflix and disney plus. Dont needing, i Cable Service anymore. If you are not a sports fan, you dont want to 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 been far more expensive than netflix. Hbo has 34 million subscribers today. No one is saying, oh my god, i have netflix, i dont need hbo anymore. These will coexist the same way hbo and showtime have coexisted. I think about it less of price to value than what you actually want . 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. If you want mandalorian, you need disney plus. The entertainment bundle, i think there is a lot of content that has been overpriced with very little flexibility, people should look for where these dollars and subscribers come from. Lucas, what does this tell you about the appetite for 2, 3, 4 subscription services. Research. T of it is it is really hard to know how much people are willing to pay for, because it depends on how much they are spending. The average consumer might not know how much they are spending specifically on cable, the cousin is often bundled with internet. They may not treat their amazon subscription as a video subscription, they are really paying for prime. We will see what happens. I do think rich is overstating the decline of cable a little bit. He is right that this is a watershed moment, signaling that disney is signaling that internet is the future, but even the ceo of netflix has said that the decline of cable will be slow and steady. Even though it is accelerating, you still have tens of millions of households in the u. S. And worldwide still paying. It will not disappear overnight. You will have consumers who have to make a choice. Sports fans and older consumers who want to keep watching live television. Taylor rich, you take a look at Companies Like cbs, with their all Access Programs that are reporting lower profit, and in your analysis, do you just assume further profit erosion . When do we start making money from the streaming wars . Rich streaming is expensive. Look at disney stock. Fiscal september 2020, expectations for disney were 8. 33. In may of 2018, for 2020, that is what people were forecasting. I think consensus now on bloomberg is somewhere down to around 5. 60. So, this is an acknowledgment, getting into the streaming wars, this is a longterm game. A play for subscribers. But this is really hard. You look at disney, i got up at 6 00 a. M. This morning, i watched the First Episode of ian,a lori and mandalor its 36 minutes long 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. I can go back and kind of watch catalog. In terms of new and fresh content to watch, there is not a lot to keep me busy. That is why you have to see Companies Like disney invest more heavily in the content for these services. I dont care if you are cbs all access, disney, disney or hulu. It requires you to create addicts. You have to keep coming 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. So that you can keep paying. It is very easy in the streaming world to click cancel or pause, and come back later. That was much harder in a cable world were there were boxes and satellite dishes on your house. It has become really easy to go on and off in the digital world. Field andch green lucas shaw, thank you both for joining us. Coming up, music video app tictoc is gearing up to take on washington as it seeks a new u. S. Policy chief. We break down the story, next. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. Taylor microsoft is among the plaintiffs in the case is viewed by the u. S. Supreme Court Tuesday over the socalled daca program. This is defending its employees who were brought to the u. S. Is undocumented children. The deferred action for Childhood Arrivals Program 700,000 rly 700,000 qualified immigrants were 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, ibm, apple and amazon have filed legal documents saying that ending daca will hurt the u. S. Economy. A decision is likely to come next year. Tiktok is being investigated for National Security concerns but the company is building up its lobbying operations. They stepped up pressure in over its waging escalating battle with facebook for viewers. To discuss we are joined by the security lawyer. He is formally a legal advisor, as well as a National Security council. Is ben brody who has been covering the story for us. What has been the reaction from this lobbying effort in d. C. . This is something that is in the process. They are revamping and bolstering their internal team, then they are doing some of their outside consultants. The question is going to be, when they bring those outside consultants to the hill and to regulators to tell the story, to say hey, we are an American Company and dont take action from beijing, what will be that reaction remains to be seen. Those meetings have not started. I do think it is worth mentioning this bluechip representation. I think they are putting up a good fight as the tensions really ramp up. Iflor the key issue is that tiktok is a u. S. Company or Chinese Company . I think that is somewhat missing the point. Aty are looking not just u. S. Ownership, but whether investors, Foreign Investors had the ability to get access to nonpublic information about data. It is awhether or not u. S. Company is part of the concern. There are broader concerns about potentially having access to that information by foreign powers. Taylor john, what is the answer to that question . If china wants data, once information, what tiktok be required to fuld over the information to beijing . John that is the concern among the National Security committee. There are ways to potentially mitigate that. One of the ways is keeping the data within the United States. China has been very aggressive in wanting to get access and requiring companies that are in china to participate with them. Taylor ben, what is your reaction to that . It has been a key issue in d. C. Over data privacy, overturning over data from beijing from u. S. Users . Ben that is sort of the key issue that folks here in washington are looking at. Republican senator josh hawley, last week, he held a hearing where he excoriated facebook. He talked about communist Party Officials kicking down the door and demanding data. He said, parents in the u. S. , if you dont know about tiktok, your kids do, and you should. It is absolutely a concern that is animating a lot of people here in the United States, not just on the republican side of the aisle. Since my story when up this morning, democratic leader Chuck Schumer sent a letter to the army and said there is concern that you are trying to recruit teens on tiktok, trying to appeal to young people on this platform where they are flocking by the millions. I really want you to reconsider and not do it because it could be a National Security threat. M others from Tech Companies, namely Mark Zuckerberg at facebook. Which has really highlighted the concern about chinese tech dominance. Given your history on the National Security council, how worried are you about chinese tech dominance . John i do think that these are the issues that are animating a lot of the concerns at the National Security council and the National Security apparatus within the United States. Technology is the new frontier. Whether it is data or Information Communications technology, i think you are seeing a trend in cfius, supply chain, even in Team Telecoms are a concern. About taking a strong look on how to compete with china. Taylor as we take a look, it is not only about turning over data but a lot of this, as Mark Zuckerberg was pointing out, is about free speech. What are you hearing in d. C. About concerns of chinese tech dominance operating basically on internet rules where fear where free speech may not be allowed . Ben it is really interesting because you hear a lot from legislators here in washington, d. C. , about how they want american tech platforms to take certain things down. Whereas, when we are talking about our chinese counterparts, chinese platforms, the concern is are they taking down too much . Have they gone beyond content moderation and Community Standards into something we would release yes political censorship. Concern,hat is a huge something that Mark Zuckerberg was talking about. He sort of hinted that the protesters in hong kong were being censored. It is unclear to me if they are on tiktok. Mark zuckerberg was stoking that a little bit. 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 he is stoking concern about a competitor. 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 and more cfius review. Is that warranted . John i certainly think so. Data is becoming an integral part of society. You have a lot of companies that are integrated across the world. Trying to balance these very difficult issues between security imperatives and economic priorities will be challenging. I think what youll see is, whether it is cfius or other National Security reviews taking place by the government, a hard look at Data Companies and other information and communication technology. Taylor john 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. We will tell you what they can and cannot say. That is next. This is bloomberg. Taylor facebook is bundling all of its payment tools into a single platform. The product dubbed facebook pay will Group ExistingPayment Options across the app into one product. The system will store users credit and debit cards for payments. This is separate from its calibra app, which will be storing and spending its proposed Digital Currency libra. Speaking of , the social network is trying to jumpstart its little used instagram tv. To do so, it will fund celebrities Video Production costs, as long as they dont say anything about politics or elections. This comes as facebook faces continued backlash for its decision to let politicians lie in advertisements on the site. My first thought was, good, coversh friar who facebook and instagram for us. 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 political issues as facebook makes a huge deal about not censoring political speech on its main app, and allowing misinformation in ads. I have to clarify a little bit. They cannotst a talk about elections, they also cannot talk about anything that facebook considers a political issue. So, they cant talk about climate change, guns, education, or 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. They cannot go there. 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. Remember, facebook has a news tab where they are paying all to talk publishers about politics all the time. There is not a lot of consistency across the platform, despite the fact that facebook is trying to increase the understanding that these are all under the same umbrella. With the same policies and same data use. Taylor i wonder if this is smart, so 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. It is a little bit of a liability concern there. Taylor another story we were talking about is 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 . Sarah there is something to be said for facebook pay across all of those services, whether it is whatsapp, instagram, facebook, or messenger. It will all be under the same umbrella. 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 be