Look back to "bloomberg west." i am emily chang.
Disney is on a roll at the box office with films like "captain america" and "frozen." for one of the biggest drivers remained espn.
They had investor day today and jon erlichman me now with more from l.a. give us a sense how important espn is to disney.
It is like the crown jewel.
It is amazing.
There's a lot to disney, with films, parks, products.
When you look at the numbers, espn and the cable networks really blow everything else away.
Revenue in 2013, about one third came from the cable group.
Not just espn, but the cable channels overall.
When you look at the operating income, the profitability -- more than 55% of the operating cost is coming from cable, with espn being a large keys.
-- pie ce.
We understand why they host investor day at espn.
There are two forms of profit -- advertising and what they are able to charge to the tv providers so that you can be assured you will get espn.
Those are the huge drivers for the business of espn.
The president talked about how there is a lot more competition for sports rights.
It is driving cost up.
What does that mean?
It means that when there are sports rights available, the cost will be higher.
And a lot of leaks, espn has rights locked up for a long time.
They have monday night football for a long time, sunday night baseball.
There is a lot of focus on the nba.
The rights there will be available in the next couple of years.
I think they are saying to all of the cable providers, look, we have a lot of rights locked up.
If there is anything that people are willing to tune in to and hold on to their cable package, it is sports.
They are trying to say that is the power position we are in.
Fox and nbc are hungry too.
All right, jon erlichman, thank you so much for keeping us posted on disney's investor day.
Apple is embedding a song id feature in your device.
They are teaming up with shazam to make an app to identify songs by picking a sound from your microphone.
They will be released on the next operating system, ios8. they will preview it in june.
Right now, i want to bring in the man who covers this for bloomberg.
If you want to know what a song is, you can either activate it through siri or you can click a button.
It is basically, instead of using the shazam app, they will make it into their own software.
They were one of the early hits on the iphone when it came out in 2008. they were one of the first ones with that wow factor.
They could tell you what song was playing and steer the purchases to itunes.
They had a relationship.
Maybe every company dreams of the partnership, but isn't this a threat to their business?
They have to weigh the financial things involved.
They are steering me people to buy songs through itunes.
They will get something out of it.
At some point, you have to weigh that there are others out there.
What about apple?
They pioneered the digital music business.
Now they are playing catch-up with spotify and pandora.
Can a feature like this help itunes get back on top?
Itunes is still the biggest seller of music in the world.
There is nobody that close, but it is slowing down.
Spotify, youtube, and other players are growing.
This is sort of an add-on to that.
It is not necessarily a groundbreaking product, but it shows that apple still takes -- adds to the music offerings.
They're playing catch-up with the innovation part of it, right?
Where does apple go from here with the itunes business?
This sounds like a feature.
It is just a feature.
They have been doing a little bit of catch-up in music.
They introduced itunes radio, which is what pandora does.
They also considered a subscription service like spotify.
They have a template or model built internally that is ready to go.
They have been holding off because the downloads are still huge.
They have the lions share of that margin.
Anything else exciting that we should look out for?
There have been a lot of rumors, including reports about health and fitness aspects.
They will preview that on june 2. all right.
Thank you so much.
Box and alibaba are preparing to go public.
Our tech ipos creating a bubble?
? i am emily chang and this is "bloomberg west." time now for the office hours section.
Webb formerly served as the coo of ebay and currently sits on the board of visa and yahoo!. thank you for joining us.
You are here to talk about when companies decide to go public.
How do they make that decision?
There has been a lot of talk about the environment.
Is it the right time.
Is the window, the ipo window, closing.
I wait to listen to something that bill mcdermott had to say earlier.
I think it might very well be seeing a repeat of 2000. today, we declared nearly one billion euros in profit to the shareholders.
We're guiding 5.8 to 6 billion profit.
Those companies are growing pretty fast.
They're losing money faster than the topline growth rate.
Are we in a bubble?
I don't believe we are in a bubble.
I disagree with bill.
I was around in 2000. a lot of companies that went out had no revenue at all and just went down on eyeballs.
We're in a different place today.
If you go public, you have to have recurring revenue.
A lot of new companies in this model are still working hard to generate growth, so they do sacrifice some profit.
I do not think that is a bad thing.
I also do agree that there are -- there is some frothiness out there with acquisitions.
We should not let one or two of those paint everybody.
What has been frothy?
Well, i think there was a recent acquisition that was done at a high valuation.
You can probably guess.
When you advise companies on going public, with two they take into account?
Do they take into account market conditions?
I think market conditions matter, but they should not be the first thing you worry about.
The first thing you have to worry about is do you have a company that is sustainable and ready for the glare of the public eye?
The next several quarters are in good shape and i feel great about this company.
I also try to make sure the companies know that, while it is exciting to go public, and everybody gets spun up about that, it is just a day.
It is just likening married.
The wedding is important, but it is what you do with the rest of your life that matters more.
If you build a great and enduring company, hopefully the first is the worst it will ever be.
Is it all about fundraising?
I think fundraising is a big piece of it.
I also think that having the help of shareholders guide you and hold you honest to where you are trying to go is an important part of growing up.
So, i think the fundraising is a big piece of it, but it is also working in the publice eye in a way that has the right structure.
What about a company like box?
They're losing money and spending a lot on the marketing.
They have some money left in the bank, but not a ton.
I am a fan of aaron levy.
If i have the opportunity to participate, i would be all in.
I am not worried about whether he is losing money.
People talked about us in the same way at salesforce when we went public.
What about when a company is not ready?
How do you incentivize the employee?
Is it about a secondary offering?
Sometimes they can incentivize them in the wrong way, maybe in the short but not the long.
We have to incense people to be builders.
That is not a long-term solution.
I would work on trying to get people fired up about the mission of the company.
Make sure that we talk about how ready we are or are not and they are connected and they have more options now, at a lower price.
There are things you can do.
If you get in the situation where they need some liquidity, there are secondary markets that exist but did not used to exist.
It does take longer to go public.
How do you keep employees from leaving?
Once they cash out, why not move on?
You have options over a long period of time.
If i got a grip today, i do not get all of the benefit until 4 years.
Hopefully next year i get another grant.
You can lay.
You cannot keep people based on money.
You have to speak to their hearts and minds.
They are learning and growing and connected to the mission.
I have to ask you, as chairman of yahoo!, you just nominated renew people to the board -- three news people to the board.
Why these guys and how well they fit in?
That is a great question.
I had a public release that spoke to how excited i am about them.
I have a policy that says i cannot speak an yahoo!
The board is not allowed to talk about it.
It is a great question and stay tuned.
I thought i would give it a try.
Winky so much for joining us.
Chairman, always great to have you here.
Still ahead, a former nasa astronaut will join us to talk about an expensive taxi ride to the international space station.
? 5-4-3-2-1. we have ignition.
Space tech will try again tomorrow to launch a rocket to the international space station after being scrubbed due to a helium leak earlier this week.
They will carry material from an organization that helps people on earth with research experiments.
Joining us now in the studio is colonel greg johnson, a former nasa astronaut who has gone to the iss.
He is now the president and executive director of the center for advancement of science in space.
Thank you for inviting us here.
This is awesome.
Thank you for stopping by.
How could we not want to chat with you?
You have a partnership with spaceex?
Is this being scrubbed of any concern?
It is a concern.
Our partners, these are the companies that construct vehicles.
They fly project to and back from the space station.
When the launches are delayed, that impacts the science on board.
Is a standard delay?
Is there anything more wrong?
I recently interviewed richard branson.
He has urgent galactic, they still have not taken off with passengers.
Are there some broader challenges?
Fly into space is hard.
We have only been doing it for a few years now.
It is expensive.
These challenges are daunting.
Getting past the pull of gravity and up into orbit.
We have been building the space station for a decade and a half now.
It is up there and it is important for our nation and the world to get to and from the international space station.
What is it going to take to overcome the challenges?
Will this happen over decades?
We keep working on it and getting better.
Spaceex has impressed us with how they deliver payloads to and bring projects back from the space station.
The japanese, the europeans, the russians, all have vehicles that can get to and from the space station.
They are doing this while you're doing this -- what is your mission, what is the goal?
We were formed a couple of years ago i the congress.
We are focusing on the space -- the research that will benefit our planet.
Nasa does the up and out.
They wanted to go to the moon, to mars.
We are trying to solve serious problems on earth.
We have health issues.
There are pharmaceutical companies that, when you take the gravity vector out of the equation, they can build more huge,. perfect crystals protein crystals.
They can map their drug to those crystals to cure disease.
We hope to cure huntingdon disease, cancer, diabetes.
What can you do in space that you cannot do on earth?
We cannot turn the gravity vector off.
We can freefall for a few seconds or do parabolic flights for 30 seconds or maybe even a minute, but we cannot turn gravity off like a light switch.
In space, we have the capability of microgravity, zero gravity.
Gravity is now pulling on these physical structures.
We also orbit every 90 minutes.
We cover over 95% of the population of the planet, from 250 miles up on the space station.
How many times have you been to space?
When it comes to private space travel, do you have any concerns about safety?
Flying in space is hard.
Safety is a great concern.
I believe that my last shuttle flight was much safer than my previous shuttle flight.
I know that that play was much safer than some of the early apollo flights.
Virgin galactic is the first commercial space travelers.
This grab the moment before takeoff.
Are you freaking out?
This adrenaline takeover?
We cannot freak out.
The heart starts pounding at that moment.
I remember my first launch.
If a lake my first combat mission.
It is the unknown.
Two-- you train, you are ready.
All of the training does not prepare you for it you have a family, they are ok with that?
Elon musk wants to colonize mars.
What do you think is the future of space travel?
We're just on the start.
We are at the beginning of this emerging market of being in space.
The great thinkers like elon musk and richard ranson, those are the guys who are the leaders.
I am trying to invite academic institutions and for-profit corporations to join in this.
The first folks that get up there, they will be the leaders in this effort.
We have investors who are building platforms in space.
We will commercialize those.
What will be the most exciting development in space in our lifetime?
I think that we will have breakthroughs in medicine.
I think we will have insight into predictive medicine, to predict when people are likely to get diabetes.
I hope that we can make rakers and curing cancer.
We will be watching.
Colonel gregory johnson, thank you so much for sharing that vision with us.
Time now for the bwest money.
One number that tells a whole lot.
Jon, what do you have?
I would most certainly freak out if i want to space.
Not for me, i tell you that.
Maybe in another life.
1.2 billion is the number of wireless accounts in china.
The dominant players are china mobile and telecom and unicom.
Alibaba is getting into it.
They were interested in getting some private players in the business, some competition.
Alibaba joins the game.
Making some strong moves ahead of a potential ipo.
Big strategic investment.
We will keep our eye on them.
Thank you so much and thank you all for watching this edition of "bloomberg west." we will see later.
This text has been automatically generated. It may not be 100% accurate.