And jones at. Jobs bonanza. The 85 billion dollar aleshin in the room. Billiondollar elephant in the room. Brazil becomes the latest target in the global ambition plan. Now to our lead. Amazon pledging to create 100,000 new jobs in the u. S. Over the next 18 months. Similar announcements from tech heavyweights like alibaba and ibm. Amazon has been growing rapidly but could this announcement keep the company on the right side of Incoming Trump administration . Speaking wednesday at the news conference, the president elect emphasized the importance of job creation. Mr. Trump we are going to create jobs. I said i will be the greatest jobs producer that god every created and i mean that. I am going to work very hard on that. Spencer covers amazon and joins us from seattle. And with us for the hour as our. Uest host, now, first of all, do you t you, spencer, give us an idea of whether this is another p. R. Stunt or if there are concrete plans coming from amazon to and enact this . This is like amazon jeff bezos trick like a jedi mind trick. t worry about monopolies. Were going to create 100,000 jobs. This is what it is all about, being on trumps good side and not his bedside so that he can direct his twitter death ray at some other company. Lyn strong words. We know that jeff bezos had an awkward relationship with donald trump thus far. But what about the actual positions that they will create 100,000 jobs. Alexa seem to dominate the a. I. Space. Is it groceries, is it fashion . It is all of the about. You are right to hit on alexa. That is externally important to them. They want to be the voice activated interface in your your hotelur car, in room. That is going to be a huge part of that. Fashion and grocery are big pushes on ecommerce and also just their Overall Network of warehouses around the country, and their delivery infrastructure around the country. Lets not forget about their Cloud Computing division. That is going to be a big piece as well as their movie and video programming initiatives will be a big part as well. Thank you for joining us today. You can give us your idea, how do you digest yet more jobs coming from the tech giants . Do you feel it is a p. R. St unt . There is a little bit of hocuspocus going on in that they want to get the headlines associated with that number, 100,000. That sounds mindboggling especially when the other knobs have been lower, 800 jobs here or there. 100,000 sounds like a lot and in talk about their various initiatives, a. I. , drones, aws, which is a juggernaut. Most of the jobs they are creating are probably on the roadmap already. Their jobs in their warehouses, their jobs those are not necessarily the bulk of jobs are not coming from those higher tech initiatives. Butink it is smart p. R. Also a good strategy at the same time. Carolyn what about jobs in the United States . We have known before that offshore and has been the way to go. A key for labor and stronger talent pools in many ways. Is this the right time to be onshoring these jobs . Not on shoringre any warehouse jobs. You cannot offshore a warehouse job. That has to be here close to people. That is one thing that differentiates amazon from other operations is a need that infrastructure close to people. They need american workers. So, off shoring is not much of a threat from amazon as much as automation might be. But even with automation, they are using more robots, using more automation in warehouses and hiring thousands and thousands of people. So, i dont see off shoring is really an issue so much for amazon. Carolyn i think is an interesting element when there has been much concern about automation that will be the death of many jobs rather than International Trade or growth of other countries. Is automation going to be a job killer or actually can you have the two go hand in hand . Ethan amazon is doing a smart thing by showing that automation is not a job killer. Which i would agree with that. Is we havere saying automation. A lot of the lower skilled jobs are becoming more interesting work, and there is more is we he automation. A lot of the lower skilled of te things that technology is going to touch but they are creating jobs in other ways. They are creating jobs for higherlevel skills, like moving things around warehouses and things like that. And so, i think in the long run, automation will take out some jaws but it will create other opportunities, and amazon as a good example of how that works and how you can get on how to have that. Ahead of that. Youlyn is there any of from donald trump whether he will make it easier to hire for companies who say they will onboard 100,000 individuals . Spencer i do not know that donald trump has much of an issue on that, perhaps with the minimum wage thing, but amazon has been well above the threshold of that debate. And for them, the challenge hiring sufficient numbers of people has been more and improving economy and upward wage pressure. So, particular with their warehouse operation. They are high skilled and jobs,ed and tech that is a copy that can recruit people. Iit is an exciting place to work. People want to work for amazon. For the warehouses as the economy improves and people have Better Options and perhaps a better pay. Carolyn perhaps a bit of a p. R. Stunt needed there is to quality of worklife balance. Spencer, fantastic to have you on the shore. On the show. A developing story we are monitoring. Lyft lost 600 million last year after generating 700 in revenue. Even though the company lost have a billion dollars, among those are a big improvement from the previous year. In 2015 lyft lost twice as much as the revenue it brought in. The netflix playbook for winning over a foreign market. Businessweek travels to brazil to learn how the company went from bust to boom in five years. That is next. A reminder that all experts of episode of Bloomberg Technology are Live Streaming on twitter. 5 00 us out weekdays at p. M. In new york, 2 p. M. Here in san francisco. This is bloomberg. Caroline a story we are watching. Consumer class action. Claiming it has a monopoly on the market. They revived a case it was dismissed in lower court. A lawyer for the plaintiff says the millions of consumers should be able to recover most of from apple take store sales. Sticking with apple, it is looking to expand its music subscription service. Equity people familiar with the matter, the company has been speaking with the makers of original programming about buying rights to script tv show and potentially movies. It is seen as a bid to differentiate apple from spotify which has twice as many subscribers. Staying with ondemand streaming, netflix is of course the chief instructor in the space for tv, but it had to fend off rivals abroad. Check out my bloomberg at the moment on the terminal. You will be looking at the operating margin. Just at 4. 6 . Came off those lofty heights of 10 in 2014. Nose dived in 2011. See marketing spend build up and they have to splash the cash. Are we going to start to see that ticking higher continue . Plenty more expansion to come. The global ambitions of Reed Hastings is the focus of the latest edition of bloomberg businessweek. Media reporter lukas joins us with more from los angeles. When we areesting looking at these particular numbers and how they have seem blueprintt a going in brazil. It was from bus to boom. Ands netflixs strategy ever new market is to go there, figure out the problems on the ground and solve them gradually. They believe they can learn a lot more in the first 2448 hours operating than they can and preparing to go there. And the case of latin america and brazil, they went there in 2011, had a slow start for the first year or two, admitted as much, which they do not typically do about specific markets anymore because they do not have to identify some of their Subscriber Bases in any individual markets. Wod over that, those t years and since then invested in making sure people could get higher streaming, that there are regionart tvs in the that that was more tv shows and movies tailored to the taste of that particular region, particularly the kind of young, ban people who are the early adopters of a netflix service. Then you saw over the past couple years them really take off. Caroline also still with us is our guest house ethan guest host. You know this space intimately well. Some of your Portfolio Companies are the periscope twitch as well. Netflix doing it exactly right. Are they right the suppressing margins paying out in the markets expanding internationally . Ethan absolutely it is a smart strategy. What is happening is each household in the past watched about 4. 5 hours a day of television. That is what is up for grabs. That is shrinking slowly, we are just crossed four hours. That will eventually over the fullness of the next decade or so go to zero. And all of that will be replaced with internet connected devices like netflix, periscope, like twitch and youtube too. So netflix was to get as much of that pie as possible in their orbit in streaming subscribers. And so, if you have to take a longterm view of profitability, which they can do wish they are a Public Company and they have got a blueprint for this, much like amazon we talked about earlier, that is a very smart strategy. And it will work. The question will be do they get the content right, the pace right, do they market it right . But i do not disagree with a high level at all. Caroline just talking to us about the way they marketed smarter, better faster in brazil. Now they have got 100 more countries who deploy those learnings from azerbaijan to all source of countries have a bitten off more than they can chew . Soon it is really too to tell the you see with latin america, brazil, it took them three or four years to say this is a success. It was a rough go of it a couple of years. And then, with time, they find even now after five years in brazil they are at 4 to 5 million subscribers which is good for netflix but a small fraction of the market. You look at every other country they went to last year and they expanded to 130 countries. Chances are they have a very small Subscriber Base they are still trying to figure out. What all the hurdles are cared we may not know how successful they have been in nigeria or whatever the country is for three or four years from now. We will we will start to see some inkling. The report earnings next week. They are playing the long day. It will be a slow go of it for them and for us observing. Asoline and competitors i say, youre in periscope, youre in twitch. You have a great blog about how video is eating the internet. Who are they setting themselvesf from . Multiple ways people get what is called premium content, the kind of content netflix makes originally or they license it from hollywood. And then there is all this generated stuff. Snapchats arrival to netflix. Other user generated things like likecope, like other apps, houseparty one were people are hanging out with her friends and consuming in a messaging experience. They are getting competition from all sides. And people have shown they do not necessarily desire a premium hollywood glitzy experience for content. Stuff like the creator and their bedroom on youtube, thats compelling to some audiences, mose millennial some millennial audiences. Netflix has to fend off and be a player in the hollywood glitzy content and be relevant to people that are excited about other things. At the same time. Billion a year on the moment and content. We will see if he can keep with the hits rolling. Lucas, another story in your beat, pandora says it is cutting 7 of its workforce. Also saying that fourthquarter results exceeded its forecast thanks to stronger ad sales. But lucas, give us more context around this, because there have been changes at the top of pandora as well and plenty of competition. Lucas pandora has spent the past year or two trying to figure out how to sustain the advantage they once had. Radioa was the, an Online Service before online music was a thing anybody did. They amassed tens of millions of users. They still have close to 80 million users. Recently spotify, apple music have come along and taken a lot of the thunder away from that company. It is not the sexy choice anymore. Pandora changed its ceo, reinstall Tim Westergren last year. They are in the process of services. G two paid it these are their efforts to right the ship and make their look attractive to someone out there since there has been a lot of talk about whether they will or will not sell to somebody. Theyre simultaneously cutting costs and saying they are performance their performance is better. So that is the reason the stock is up. That does bode well headed into their earnings and a couple of weeks. Caroline up 6. 3 as we speak. Ou veryhaw, thank y much. Our guest host sticking with the spirit coming up, the first is around the corner. After a slow 2015 will encourage other Tech Companies to go public . This is bloomberg. Caroline apple that shut down its titan drone internet program. Confirmation did not come till early wednesday when a Technology Blog reported to move. Google acquired Titan Aerospace in 2014 beating out facebook in the bidding. The vision was to beam Internet Access from the sky so more people could log on from remote places. Now app dynamics is gearing up for the first tech ipo of the year. The Software Company plans to raise 158 million in its initial public offering. And a concurrent private placement, and the price of shares on january 25. Speaking on this is my guest for the hour. One of your Portfolio Companies is one of the only Success Stories of 2016. It went public. Is 2017 looking to be the year . Ethan that is the buzz right now. I tend to be contrarian and do not believe in market timing. In terms of this is the right time for a company to go public. If you rewind the clock that was a great time to go public. They had what most industry watchers was a very successful ipo process. Caroline double where they started. Ethan i think peoples ability to predict the market timing of if now is going public, is zovoo doo. Somehow back given the election uncertainty. App dynamics being one of those. I do believe we are going to see more ipos. People are going to say this is a great time for companies to go public. It is a self fulfilling prophecy. Caroline also coming have to look at how the company is performing. On your portfolio list is it came back away from a major ipos. It has got to be the right time for the company, as well. Ethan i cant, specifically on blue apron. I think app dynamics, just as every company does and theyre thinking about what the right timing is, they look at, they have conversations with the analysts that are going to cover them, they look at their projections, their ability to understand their business and his side is this the time that we want the scrutiny and rigor of a wall street offering or not . And Companies Come to their own conclusions on a bit carolineth. Caroline investors want to see the perfect mixture growth, cash flow, perhaps control of costs. How did he get that perfect mix . Isan the biggest thing that correlated to how successful an ipo and a Company Trades is the fishing growth. And then there are other factors like what is the overall size of the Market Opportunity and what could this Company Become . Efficient growth is what people are valuing, that is different than in the past. Caroline and what about app dynamics and looking at market size . Is this a place that we should be looking at, productivity, developer tools . Ethan this is a place that is near and dear to my heart. We invested in a lot of companies with similar dynamics to app dynamics. It is, these that make developers on the infrastructure teams more productive, more successful in their jaws. As a result, they did you what Technology Gets adopted, which is a change in the past when you had topdown decisionmaking around tech. These are built for engineers and using to make their velocity faster. Caroline i look at some of the startups and your portfolio and there are a lot of m a, twitch to amazon, periscope to twitter. We have just seen twillo being sold in a peer to peer m a space. Ethan the two 10 tw tend to mirror each other. I think wall street understands the power of that business model. Dynamics which sells a Big Enterprises does not have that characteristic but a lot of other companies, they do not have to spend as much on sales and marketing. And wall street likes that. So the result is i think more and more Companies Using that business model, figuring out how to instrument their business around a low touch sales model. And will have success on wall street. So maybe more of those companies will go public than in the past. Caroline ethan, such great perspective. Sticking with me. Randallp, at ts ceo stephenson just met donald trump. So, just what was discussed . And more importantly, what was t. If you like bloomberg news, check us out on the rate appear you can listen on bloomberg adio app, bloomberg. Com and sirius xm. This is bloomberg. You are watching Bloomberg Technology. Lets begin with a check of your first word news. American soldiers are on russias doorstep. 3500 u. S. Soldiers and dozens of Armored Vehicles are being deployed in poland. Militarye wanted u. S. Presence to deter russian aggression. British Prime Minister minister theresa may will make a speech on her approach to brexit next. Tuesday may has been under pressure to lay out her strategy before she triggers the formal brexit negotiations. Says europe needs to do more to ensure its security. The german chancellor said that uncertainty about continued u. S. Cooperation before present a like Donald Trumps inauguration. An escalatingith refugee crisis and previous terror attacks in france and germany, says that e. U. Would be naive to rely on others. Israels Prime Minister