Owes an apology. For questioning the president costs us and ship. Meanwhile, the debate says Libertarian Party nominee gary johnson and the green partys jill stein did not make the required polling threshold necessary to qualify for the first debate. That debate is scheduled for september 26 at Hofstra University here in new york. The number of zika cases keeps climbing in puerto rico. Health Officials Say more than 2,000 cases were reported in the past week. The total so far, nearly 20,000 including 1,700 pregnant women. Local news 24 hours a day powered by more than 2,600 journalists and analysts in over 120 countries. Bloomberg west is next. Emily im emily chang. This is bloomberg west. Coming up, its time for the annual pilgrimage to the apple store. The iphone 7 hits the shelves. Well look at demand and whether online orders are cushing the sidewalk frenzy. Plus pandora launches a 5 a month ad free service. Ill ask tim whether well see the on demand service go headtohead with spotify. Edward snowden is back in the spotlight with a movie premiere. Well consider whether he goes down in history as a traitor, a criminal or a hero. But first to the lead, apple fans making their annual pilgrimage to pick up the latest iphones with lines of customers wrapping street corners in cities around the world. Apple says the Retail Stores sold out quickly meaning that only customers who preordered their phones are guaranteed to get them this week. The iphone seven caps off a remarkable week for apple shares closing up to 11 for the week. David kirkpatrick, my guest host for the hour is with me in new york. David, i hear you wandered past the apple store in Grand Central and it was quite a scene . Scene, it was relatively orderly, but it was crowded and quite excited it seemed to me. So my impression from talking to people there and from just checking out the landscape is there is a lot of excitement about this phone which frankly surprised me. Emily at the same time samsung, you know, exploding phone stories get crazier by the day. I mean, there have been reports of cars on fire, kids getting burned, i mean this is really the timing is insane. David its a gift from the gods from apple, lets face it. They and its terrible for samsung which really does have great prospects and i think the galaxy 7 was a good product also except that it blew up, not a good problem to have. So, i think what we really are seeing with something as big in the news as prominent in all of our business discussions as apple, everybody wants to kind of call the turn and a lot of people have been really looking for a chance to say apple is finished. Well, its not finished. I think the iphone continues to stay alive. We still hope for apple to do something really new along the way in the near future, but i still think they have a lot of upside and their Stock Performance in the last few days would suggest that investors agree. Emily i wonder whether this might be another Inflection Point where i we see people switching from samsung to apple or other carriers possible as well where people say, you know, im tired of this, im switching to an iphone. David if this phone is as good as it seems in certain bank basic things, not tons of amazing features, but better battery life and way faster, people will start telling their friends, man, this thing is better, that could do exactly what you just said and lead people who hadnt upgraded or using a samsung or Android Phone to get an iphone 7. I do believe that is really possible. I think its going to be a big success. Emily david, stay with me. I want to turn to twitter. Last night, the platform kicked off 10 games of livestream. Shares rose more than 4 in friday trading. Is this the beginning of a turning point for the Company Giving the social Media Company new meaning . Our Bloomberg News reporter is with us as well. I tuned in. The stream was clear, everything seemed to be working smoothly. It wasnt perfect, but the reviews were good. Sarah a rare moment for twitter, an achievement, a celebration for actual Product Innovation which is what they have been hammered on by investors for the last couple years, really ever since their 2013 i. P. O. Emily lets look at the pros and cons, its free. You dont have to put in any cable credentials or anything like that, as i mentioned, the quality was good, there was a delay which some people were complaining about. The tweets that you saw were basically, all the tweets on the platform, everybody you dont know. So some people thought it was too random, they wish there were some sort of filter. No negative tweets in there. Twitter did a good job of filter those out. David, what is your take . David for me, the big thing is symbolic. Twitter remains a service that is way too hard for most people to understand. Its not your grandmothers service or your mothers service in most cases. It might not be my Friends Service being a baby boomer. Something that everybody understands that happens on twitter is a huge win. I think putting an nfl game, there is nothing more mainstream than that. Its not hard to explain and just about Everything Else about twitter over the course of its entire history has actually been hard to explain. So i think that is a big win. Emily is there real value to advertisers, though . There has been some question about that. How do they monetize this . Sarah twitter is taking a revenue share on the ads sold through the platform. What is more important over the longterm bow is this proves to advertisers that twitter can be a destination for live video. As twitter does these deals with streaming services trying to get other games like nba games, they dont have nba games yet, but they have content, as they get more content, they need to convince advertisers that theyre just like youtube or hulu, they can sell video ads, too. Emily can they afford it . They paid 10 million for the rights to these games. If its a success, they have to pay a lot more next year. They are obviously striking deals with other parties as well including bloomberg. But if this ends up being the direction for the future, can they pay up . Sarah well, affording something, its a strange term in tech because, of course, twitter is unprofitable and they will continue to be unprofitable for the foreseeable future. Is it important to the future of their business . Absolutely. This is what their strategy has been for the last year. This is how theyre going to turn around the product. As david said, make it more palatable to a more general audience. So yes, they have to take a risk because they have been so risk averse. Emily david, if indeed this continues to be successful, do you see this as something that is enough . Will this change the way the world fundamentally thinks about twitter and give it a Brighter Future . David certainly not just putting the nfl will not be enough. I think that if twitter continues down the path which i think is a big part of jack dorseys vision of being a place that is almost the guide to all media and if it does it elegantly and in a way that people can understand, i think it has a real future and a bigger future than maybe i would have said it had a year ago. So i say there is promising signs for a company that has been often felt like it was sort of flailing around for an identity. Its identity could be the place where you really understand what to look at, what to listen to, what to watch, what to read and of course it will always remain the place where public figures broadcast their views and thats a huge asset that it has, even though that in itself is not a big money maker for it. Emily people said i would love to watch the oscars this way, the president ial debates are coming out. What can we expect . What have they nailed down and what could come . Sarah they have a lot of sports deals going on. They have baseball, hockey, down the road theyre trying to get into entertainment, they wide live streamed the democratic and Republican Debate ahead of the election this year. What we might see in the future is just a huge expansion of that. They released apple tv apps, xbox, amazon fire tv. Theyre trying to make this a new window through which to access twitter, the product, as opposed to having to set up a account, figure out who to follow, that really wonky experience that david mentioned. Whats hard, though, is twitter has this history as we reported on of just tension, executive departures, especially within the product organization, they have gone through a within a lot of turmoil within the product organization, they have gone through a lot of heads of product, lots of turmoil, see if they can stick with this one. Emily sarah, our Bloomberg News reporter who covers twitter, david, you are sticking with me. Intel shares hit a 15year high on friday after the Company Raised its q 3 Sales Forecast saying a recovery in the personal Computer Market was behind the move. This is quite a reversal from earlier this year when intel said it would cut 12,000 jobs or 11 of the workforce, but friday shared closed up 3 . Coming up, pandora presses play with a new adfree service. Taking on spotify is still to come. Well speak with tim westergren. Plus, at hollywood movie reignites heated debate, will Edward Snowdens leak go down as whistle blowing or treason . Well discuss. Emily pandora has unveiled one this is bloomberg. Emily pandora has unveiled one of two new products we were waiting for, pandora plus is an adfree service costing 5 a month and a few added bells and whistles like the ability to replay songs, skip more songs and listen online. But the big project still to come is an on demand service to make it able to compete. Earlier i sat down with par pandora c. E. O. Tim westergren and whether the subscribers are new or existing listeners. Tim for sure in the near term, an existing audience that is right for this. We know what people want on pandora. They have been telling us how they use the product and directly. As we built the product and prioritized features, they were based on the demand of the existing audience, which is a large audience, just shy of 100 Million People over three months. A big batch will convert and flow them up the curve little by little. Emily why launch this mid tier service, why not go straight to the on demand service . Tim if you look at the mass consumer, you need to address the entire market, you need more than two options, the free or the 10 a month. You need a mid tier that will meet the average consumer where they are. If you look at Subscription Services historically, they always had multiple price points. You perfect that market by segmenting. So i think this is a big step in that direction. Its the first and only mid tier and i think only pandora can do this because of our existing product and existing ad business. Were perfectly set up to address that entire demand curve. Emily you struck a deal with warner moving towards your on demand service which is coming. What else do you need to do to get that out there . Tim build the final product now, roll it out as fast as we can. I do need to acknowledge this moment for us, striking all of these direct deals, not just with the labels but publishers, too, thats a real watershed. The industry has said to us, we believe in this idea you have, this product you have and the way you want to address the market. Were going to give you the ability to build these features and these multiple tears because i think, one, they see in pandora, a company that is genuinely interested in promoting the industry and promoting artists. They also see as a company that can incrementally build new markets. So address this mid tier, this mass consumer and so i think they partner we struck these deals in record time. Emily when will we see this before the end of the year . Tim yes. Emily not a lot of time to build a new product. Tim i have been looking at it, its pretty sweet. Emily how is this different from apple music and spotify . Tim the way i would describe it like 30w, its kind of million songs in a search box and good luck, that is not what people want. People want interactivity, they want engagement and lean in and they want it to be easy to use. It shows up in churn rates and lack of engagement. What pandora will do is bring the simplicity, the intuitiveness in the existing product including pandora plus and bring it to on demand. So i think when you see this product, youll see, oh, thats how it should be done, the same way we invented personalized radio, we will do the same for the interactive piece. Emily do you see a need for a Free Streaming Service in the future or will all users have to move to pay . In spotifys new conversation as we understand it, theyre really focusing on moving their free users to paid users. Tim thats a great question. I do think you need free. To retain and engage a large segment of the population, you need a free offering, the question is what is the business of the free offering. So people love free, but how do you monetize it well enough that its not cannibalizing or undervaluing the value of make. Music . Music has value, you have to preserve that. I think pandora has the unique ability to do that. We have devastated or ability to monetize free radio listening in a way nobody else has. Our business model, we have a profitable foundation which is radio. Thats where we engage listeners 24 hours plus a month and learn about their taste and learn about how they use the product. That becomes a launching pad for us to send people into the hierarchical products. In the meantime, theyre profitable, we are generating a lot of royalties, hundreds of millions of dollars for the industry, thats the formula for success, not just for us, but for the industry. Emily spotify has been doing some interesting things when it comes to competition. Musicians who debut exclusive content elsewhere like on apple music, theyre making those musicians songs harder to find on spotify. What do you think as a competitive tactic and is that common or more common . Tim in the long run, every service is going to have to think just about the consumer. You have to super serve your consumer. I think that means that these exclusivities and the other methods are not going to be long for the world. These kind of things will go away over time. There is experimenting going on, can i do this and get leverage for that . Its not good for consumers. If you dont do good things for the consumers, you dont win. Emily when is the end game there . Tim i was a musician for a long time. I played in clubs across the country to very small audiences for the most part of the one of the great things, the great problems that need solving, how do you bring butts in seats and bring audiences to see bands . We have been building that for a couple of years. Artists actually log in and essentially address their audiences through the service including by way of sending published audio messages targeted geographically to bring people to shows. And we have seen this extraordinary phenomenon where as people get these targeted recommendations to shows in their neighbors, theyre responding at incredible engagement rates and were seeing shows sell out methodically. And that is, i think, the great promise of a Successful Service like this, not just that you please consumers and build a great business, but it becomes this sort of mother of all platforms for musicians. Emily pandora c. O. E. Tim westergren there. Still with me, David Kirkpatrick. David, what are your thoughts on what tim had to say there . Its interesting to see with spotify pushing towards this paid service, but he believes that you need to have a free service and that some users just wont ever change. David he may be right about that. Clearly there are three very strong players in this business with apple and spotify competing with pandora. Pandoras brand is great. I think he was being really very unfair, though, when he said the other services are just a search box and then youre on your own with 30 million songs. Spotify has done enormous work to make discovery better in spotify, as a devoted spotify user myself, i can say, nothing invested in it, just basically i love their product. It really has gotten easier. Spotify has 40 million paying users. Thats a lot. Apple music nows that 15 million. Thats pretty good. People thought apple would kill spotify right away. That has definitely not happened. Spotify is holding its own. But apple is coming on strong with unlimited resources. Iering makes sense. To me is it a really big deal . Ok, somewhat of a big deal. I think the real question will be how do they manage and compete when they have this direct headtohead competitor for spossify and apple music. Emily we have seen other Music Services try and fail, and do you see this industry in the future being not a winner takes all industry where a few bigger players continue to go headtohead . David if all of the services essentially have all of the music, i dont see why it would be a winner take all industry. Be a winner take all industry. Its going to be which interface do you prefer, do you like the brand pandora, spotify or apple. Of them will have fans so to speak. There arent the same network effects. On the other hand, as in many other industries i was going to say. On the other hand, if maybe the next evolution was to make this a more effectively social thing, spotify had integrations with facebook and i dont think its really paid off the way facebooks algorithm works for them. But maybe inside these services, they could build some kind of social function that really made them different, but pandora could do that, but no one has done that effectively thus far. Emily thats interesting, david, i believe many have tried. David kirkpatrick, you are sticking with me. Coming up monday on bloomberg, well check in with go pro c. E. O. , set to launch its consumer drone with some analysts calling it a Pivotal Moment for the company. Well hear from him 11 00 a. M. New york time. And do not forget to turn in this weekend, well bring you the best of our interviews from the week including our exclusive with sales force c. E. O. This is bloomberg. Emily the advanced imaging sensing startup has broken its