In a tech bubble. David einhorn says companies he is betting against may fall at least 90 if and when the market applies traditional about uh and traditional valuation. Ime was are pretending intention paid in equity is an expense because it is noncash. At ts profit dropped slightly in the fourth quarter. Undermpany added six 25,000 monthly subscribers, up from 296,000 from a year ago. The next program which allows customers to pay on phones rather than having a contract. Amazon is apparently taking a sales hit. Saysrchers at ohio state household of cut their amazon spending by it by about 10 . Amazon sales of items over 300 have fallen by 24 . U. S. Supreme court will be hearing the argument today what could be when the most Important Media cases ever. American broadcast companies against aereo. Ereo uses tiny antennas to broadcast signals to subscribers without paying for it. Network say this is Copyright Infringement since they are receiving no fees. Aereo claims they are not subject to copyright laws because they receive it privately. Aereo is available on a level in in 11 cities, houston, and dallas. If it loses the case, it will likely finish. Betty liu was that the Supreme Court all day long. I know court just let out, what is happening on the ground . Moments ago, the oral arguments were finished. I think an interesting dynamic played out. Both sides,ers from paul clement and David Frederick came out and made the reposing statements. In that crowd, was barry diller. He wanted to listen in on what paul clement, the lead attorney for the broadcasters, what he have to say. I guess he didnt get enough information in the car in the court room. I asked very how we thought things went and he said, i think they went well. He didnt want to make any more statements but he listened in again on the broadcasters and then he walked off. A lot of people thought that very he was the most highprofile ceo at this hearing that he would perhaps split out the past door the back door but he couldnt help himself. Quacks tell us to the players are. You have buried a letter, the broadcast is on one side and even the Obama Administration has come to their support. The department of justice came down on the support of the broadcasters. On the aereo side, lots of Silicon Valley players support it. They say it is important for the future of Cloud Computing. Dish network has the technology very similar to aereo. They wrote a brief saying this is basically what we have which is we allow people to get broadcast content in whatever they wait they want. It is new technology doing the same thing that a vcr used to do. You sat down with the aereo ceo. What did he have to say about today . It iseresting interesting he didnt want to say anything today. Chet did sit down with us exclusively yesterday. He said he was optimistic that he will win. He said the law is on his side. Been aboutng has making sure the consumers get the signal, it is not about making a couple of guys rich. In we come. We are completely Different Technology and technologybased in the fruits of technology and antenna. None of them can dispute the facts because in this case they dont have a full way to disk beauty to dispute facts. There is all this concoction and a sickly false narratives being created that somehow this is a copyright problem it is not. Is a Business Model problem. The world is changing around these guys and they are reacting with what they know which is mitigate and kill new companies because they are making far too much money and continue to make far too much money and have no intent to change. Can you understand that they fox, nbc,g cbs, abc, sending spending millions and millions of dollars in programming that basically you are charging people eight dollars a month to access. Can you see though that what they see what you are talking about as innovation, they are saying is theft . If we apply this to hbo, it is a reason why they are called free to air broadcast elevated. Television. It is Public Interest convenience and necessity. Free to the consumer. They make money billions and billions with advertising. Is preserved. A 60 Million People in america today, according to broadcasters, use and antenna. Are those people infringing on the copyrights . Tons of money make money selling Technology Like tivo. All these Companies Make money by selling technology. Than just anre equipment provider even if that equipment is a mccloud. Is in the cloud. The question is what the factual basis is. Lets say you get into original programming. Lets say you start developing your own channel, doesnt that change who you are . Tivo is a great example. You can get a retail tivo box. You can plug an antenna into it and tivo will sell you video and demand movies. Where is this Copyright Infringement . It is only Copyright Infringement because i have made it simpler for the consumer to get it . Et, the ceo, not backing down. What happens after that after today . For the broadcasters, nothing happens. I am sure there will be some drinking done tonight because it has been a long journey for both sides. For the court, it is going to be like any other case. The justices are going to retire to their chambers and discuss the case and vote on to it. On it. At the end of june, that is when we are likely to hear a decision on this case. For more on this, i want to theg in rich greenfield, media and entertainment madness list entertainment analyst because he was in the core room. Great to see you today. Tell us how you think things went. The overall case was very highly decided. The bottom line is it is not clear on either direction. We heard cases in the court room. You can tell there was fear. How do you write this decision if you were to say aereo is illegal . How to write the decision without impacting Cloud Computing . There is concern about how you keep this from impacting other industries. Chief Justice Roberts went after the plaintiffs attorney saying aereo is like using a Public Parking garage. You go on back arise and you are renting space for an amount of time. How was that different if you go home and build a garage . You are essentially renting versus buying. I think that is the key challenge the court is grappling with is that the same thing as renting versus buying or is there Something Special about broadcast television . Those are a lot of questions we expected from the justices. Were there any curveballs . Probably not. I think there was some concern when you think about what the overall impact could be on why this system is the way it is. There was a comment from justice ginsburg, the only reason you are trading millions of individual copies to circumvent copyright law and i would not call that a curveball. The pushing on why this system is built as ways to circumvent copyright law was another key theme. Thank you for joining us. Rich greenfield, the media and entertainment analyst. Thanks. We will be waiting for this decision at the end of june. Barry diller has said if aereo loses, it is over. Experts tell us it is 5050. Just a note of disclosure bloomberg tv does have a Distribution Agreement with aereo. The warriors fell short in their nba playoff game last night but the team struck a huge deal with the tech giant today. We have all the details from the team owner next. You can watch a streaming on apple tv and aereo as well. Welcome back. The Golden State Warriors have abandoned plan to build a new arena on san franciscos waterfront. They struck a deal with salesforce. The warriors will own the land outright implant to build an arena with private financing. L. A. Guber joins us from and also Jon Erlichman joins us from new york. Ago, you wereg looking at not far from where i am sitting. On the waterfront near the bay bridge. You spent 20 million for plans for it. Why this new plan for mission bay . We control our destiny. We own it. Our relationship with the city is one as an owner, not as a tenant. We feel the site offers us a very attractive elements because the venue is a venue that is going to be for the city. Is one of the top 25 markets that does not have a venue like this. We believe it can be activated successfully, accessible by all four sides. The it offers some strategic advantages. Yet, it has its own location. It defines itself. We are going to spend that money privately, offered to recorders of 1 million for the retail, office buildings, and the plaza sites. We want something that we actually own. You bought the land privately out right from salesforce. I am curious how the conversation started. Did he try to recruit you . Mark called and we met with him. Joe lake of, my partner, met with them. Together, we fashioned in the arrangement an arrangement. And we decidede this was the place to make the move. And offered us a higher degree of certainty, a timeline that was most effective, and really the kind of accoutrements that was hard for us to get at other places. When you talk about being privately funded, how do we think about what the money comes from the whole process . Did you ever get a rotator cuff injury . That is the kind of money it is. It is all privately financed by the ownership and by the partners involved with the enterprise. Without looking at public funds, we are going to be an active participant in the city and a good listener to the marketplace. We are going to be very responsive. The idea is we are a private Citizen Building a private venue for the benefit and purpose of all sent chris Cook San Francisco bay citizens. What about what will be unique about this arena . Youre in a position to build one of these things from the ground up. What you want to be sort of the signature thing tied to this . Everything is going to be unique. We are going to cast our line over the horizon, not make it something else. Had it really be in original venue. And ae that is attraction lightning rod to bring the best and brightest to san francisco. It will be a whole theater element of this. A whole Public Performance element of this venue, too. The point is we are going to have it digitally fit. We are very successful at oracle with this. We are going to bring stateoftheart sound. We are going have the right kind of visual display. We are going to make the audience, not passengers, but participants. We think that we have the know it all and we have the relationship with Silicon Valley and the Business Community to really bring those talents. If you wantto be a metaphor, it is going to be Madison Square garden out west. It is going to be the kind of venue where artists and performers watchable format. Want to perform at. Franciscoyou see san as a draw in terms of recruiting top talent on and off the court . We are sold out in our current site. About eight or nine miles. Are high up in the League Standings in terms of attendance, merchandise. We do very successful. That allows us to undertake this proposition. Drawn from san jose, both sides of the bay, equally allaround. The warriors played their first seasons in san francisco. We are coming home in a sense. Coming back home. Warriors coowner, peter gruber, and Jon Erlichman. Thank you. To rolloutaming up w its own cable tv service. Can they take on netflix or amazon . That is next. Welcome back. Cable giant comcast reports big fourthquarter earnings thanks to the Winter Olympics on nbc. A surprise growth in tv subscribers. Sales rose to 17. 4 billion and profits rose 30 . Comcast added 24,000 tv customers in the quarter bucking a broader industry trend and of course comcast could add millions more subscribers in its merger with Time Warner Cable is approved by regulators. Is getting into the online tv game as well teaming up with the Chernin Group to invest 500 million in digital tv service. The Chernin Group is led by former Fox Broadcasting executive, peter chernin. For more, i would like to bring in cory johnson. Interesting partners here. Theyre looking at ways to build deals for Live Programming and investing in ondemand services. Will other traditional players be challenged by this is the question. This is an odd partnership. It is not at t as a company that needs a lot of cash. The Partnership Began about a year and a half ago when at t and the Chernin Group tried to buy hulu. Eventually that option did not go anywhere. The partnership had been made at that point. At t wants to get into content. And other Large Company that wants to get into content. We have heard yahoo recently wants to get in there. Amazon has made a much bigger play. At t wants to get into this game Andrew Wiggins and who wins . At t and the Chernin Group want to get together and potentially buying newer content companies and build this thing up to compete with netflix. Is in theichman center of anything because there were so much going on in l. A. He spoke to people like Truck Drivers and people in special effects and everybody is working. Piracy doesnt even exist anymore because there are new shows being filmed all the time. We see companies in this all the time. Disney made an offer. There are these other media companies. These new start up companies that want to get into online content so that everyone can see it. That is what this that is. Bet is. At t in that game, they own a company and they have 5 million subscribers the traditional way. Said,omcast came out and we would get into this over the top streaming game potentially if the market dictates that is the direction we are going. Interesting stuff. Fascinating we have the content world changing. It is happening fast. Thank you ray much. We are going to go inside aereo. We are going to show you just how the technology at the center of todays arguments at the Supreme Court works. You can watch a streaming on your phone, tablet, and bloomberg. Com you are watching bloomberg west where we focus on technology and the future of business. Aereo has made its arguments at the Supreme Court today where traditional broadcasters are challenging the live tv streaming company, but how did this Technology Behind aereo really work . Jon erlichman went inside aereo to find out. At this manufacturing facility in new hampshire, machines are assembling hardware. This is the antenna. We have found a great design and did a lot of work on it. We have achieved a great performance. Aereo give us an inside look at the busy factory where the final product comes together product that is revolutionizing the way we watch broadcast tv. When you see how the technology works, it is different than using oldfashioned rabbit ears. Each antenna goes to an individual subscriber but the antenna is not mounted on the tv. They are stacked on boards and then slide into a box that it that can accommodate thousands of antennas and mounted on rooftops. The antenna sent the tv signal to a transcoder and then a dvr allows you to stream online and pause and rewind and record. Standard antenna for a Cable Company takes and pushes it down the wire. Model where you are listening to what you want. What is the capability of what you can manufacture . I think we can manufacture huge numbers, many more than 10 times of what is on the field. They plan to operate in 22 cities by the end of the year and is built the business to accommodate what other what level of command comes their way. As demand grows, we can grow with that as opposed to the conventional model that says im going to build it out and hope they come. Isery analog Business Model not capable of being successful in todays economy. Jon erlichman inside aereo. Ereo ise on how a disrupting the media landscape, i want to bring back betty liu who was at the Supreme Court. And mikey johnson morehouse who covers entertainment and media. Michael, i want to start with you. What you think about aereos attempt . I am not a lawyer. It just doesnt seem fair to me. I am in new media guy. Cable plays for retransmission. Aereo is nort over the air antenna. You can buy that at radioshack. This is a service that goes beyond traditional antenna. It goes beyond the expansion of rabbit ears. It has dvr. We had a guest earlier today, a locker fester at and we yo at nyu, that compared it to dropbox. They says that the Supreme Court rules against aereo, back up with the whole cloud into question. I think they are giving aereo lots of credit. They are trying to innovate around the law. They will find a stinky way around it, not really trying to find a completely new technology. That, i think while we know john roberts asked those kind of questions during the questioning today about the cloud and the impact of other businesses if they rule against it i think aereo is really just aereo. I dont think the copyright law applies. When it comes to consumers, they are still obviously contained complaints about the lack of choice and the lack of meaningful competition. We also have to pay for hundreds of channels we dont necessarily want. What to the incumbents have to say about that . It was interesting because i want to pick up on what cory was just talking about. Much of what the justices were discussing reflects what con