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00:00STRATEGY IN TERMS OF BECOMING A TRADITIONAL MEDIA STRATEGY. THEY HAVE NOT DONE THINGS LIKE SOME OF THE OTHER MAJOR MEDIA COMPANIES, OR TECHNOLOGY COMPANIES HAVE IN TERMS OF DIVERSIFYING. FOR LIKE VIDEOGAME PLAYING OR OTHER AREAS. WHEN I LOOK AT THEIR SPENDING IT IS NOT THE DOLLAR AMOUNT, IT IS THE LACK OF DIVERSITY IN TERMS OF HOW THEY ARE LEVERAGING THAT CAPITAL. TAYLOR: ERIC, AS WE TALK ABOUT THE DIVERSITY, LEVERAGING CAPITAL, YOU HEAR ONE OFF RANDOM RUMORS ABOUT WHAT THEY BUY A MOVIE STUDIO OR COULD THEY ENHANCE A VERTICAL OR HORIZONTAL SUPPLY CHAIN. IF THAT IS OUT OF THE QUESTION, WHERE WOULD YOU WANT TO SEE NETFLIX GO FORWARD IN 2020? ERIC: I CAN'T IMAGINE THEM BUYING A LARGE MOVIE STUDIO BECAUSE THEY ALREADY ARE A LARGE STUDIO. THEY HAVE A LOT OF CONTENT THEY PRODUCE IN-HOUSE AND THAT WILL ONLY CONTINUE TO INCREASE THE SHARE OF THEIR TOTAL LIBRARY CONTENT. ALSO TALKING ABOUT THINGS LIKE DIVERSITY REVENUE AND LOOKING INTO OTHER AREAS. THEY'RE LOOKING INTO COMPANIES THAT HAVE LARGE DIVERSE REVENUE STREAMS LIKE DISNEY, AMAZON, APPLE, BUT NETFLIX'S HYPER FOCUSED ON MAKING THIS WORK. IT'S A PRETTY BIG SANDBOX FOR THEM TO PLAY AND WHEN YOU LOOK AT HOW MUCH PEOPLE PAY ON TRADITIONAL PAY-TV, AS WELL AS OTHER FORMS LIKE MOVIE THEATERS. TAYLOR: ERIC, $14.8 BILLION IN DEBT BACKED DOWN FROM $10.4 BILLION A YEAR AGO, ARE YOU WORRIED ABOUT THE BALANCE SHEET OR DO YOU LIKE THAT THEY ARE BORROWING? ERIC: INTEREST RATES ARE LOW RIGHT NOW, HOPEFULLY THEY WILL STAY LOW FOR NETFLIX TO CONTINUE. THEIR BIGGEST STRENGTH RIGHT NOW IS SCALE AND THEY ARE STILL GROWING BY QUITE A BIT. WITH THAT SCALE, THAT DEBT, THAT BALANCE SHEET DOES GET SPREAD OUT OVER MORE CUSTOMERS. WHEN YOU LOOK AT SOMETHING LIKE DISNEY OR APPLE, AND THEY SPEND ALL THAT MONEY ON A SMALL NUMBER AND THEY ARE HOPING FOR IT TO GROW. NETFLIX IS ALREADY THERE AND HAVE ACHIEVED LARGE SCALE. TAYLOR: THE QUESTION OF SPENDING TO KEEP OFF COMPETITION IS A STORY WE WILL CONTINUE TO DISCUSS. THANK YOU BOTH FOR JOINING. LYFT IS TEAMING UP WITH LEBRON JAMES TO GIVE AWAY FREE BIKE SHARE MEMBERSHIP'S FOR THOUSANDS ACROSS THE COUNTRY. THIS IS PART OF A LARGER INITIATIVE TO EXPAND TRANSPORTATION ACCESS TO COMMUNITIES IN NEED CALLED "LYFT UP." PROVIDE FREE AND DISCOUNTED RIDES. IN THIS HOUR WE WILL BRING YOU OUR CONVERSATION LYFT'S COFOUNDER.

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There Is No Reason to Panic Over Virus, Says OCBC’s Menon

Vasu Menon, executive director at OCBC Bank Wealth Management, discusses the coronavirus outbreak and its impact on markets. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)

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