MADE FOR SOUND, YES, HUAWEI,
TRADE JUDGE RULING THAT
TECHNOLOGY GIANT VIOLATED AND
IMPORT BAN ON SOME IPHONES,
QUALCOMM PATENT ON
BATTERY-SAVING TECHNOLOGY, THE
TWO COMPANIES HAVE BEEN IN
TWO-YEAR LONG LEGAL BATTLE.
QUALCOMM SAYS THAT APPLE OWES
BILLIONS OF DOLLARS IN LOYALTY
OVER TECHNOLOGY USED IN IPHONES,
JOINING US IS DANIEL IVES,
THANKS FOR JOINING US, FIRST
GIVE US YOUR REACTION TO
QUALCOMM-APPLE FIGHT THAT KEEPS
GOING ON?
>> ANOTHER ROUND OF BATTLE, SOME
OF THE RULINGS THEY'VE GOTTEN
ESPECIALLY OVERSEAS, YOU KNOW, I
THINK THIS IS A GUT PUNCH TO
QUALCOMM IN RULING AND I THINK
RIGHT NOW THIS CONTINUES TO BE
OVERHANG ON APPLE BECAUSE THEY
CONTINUE TO COME OUT AT THE
WRONG TIME GIVEN IPHONE SALES
ARE FALLING OFF THE CLIFF.
MARIA: WE WANT TO TALK MORE
ABOUT REGULATION AND EUROPE IS
AHEAD OF TRUST, EU CONTINUES TO
TAKE ON BIG TECH, THE EUROPEAN
UNION BACKING COPY RIGHT REFORMS
TARGETING FACEBOOK AND GOOGLE,
THEY WOULD REQUIRE THE COMPANIES
TO PAY LICENSING FEES FOR
CONTENT POSTED ON PLATFORMS, NEW
REFORMS TARGETED COPYRIGHTED
MATERIALS BUT INSTALLING FILTERS
ON PLATFORMS, BUT, DAN, ON TOP
TO BE HEFTY FINES AGAINST
GOOGLE, OTHER TECH COMPANIES IN
EUROPE, MUCH MORE AGGRESSIVE IN
EUROPE THAN THE U.S., WILL THE
U.S. FOLLOW SUIT AT SOME POINT,
DO YOU THINK AND GET A BIGGER
GOVERNMENT HAND ON TECH?
>> THIS IS AN ANTIBIG TECH
MEASURE, I TUIKD EXECUTIVES LAST
NIGHT, A BUNCH FROM THE VALLEY,
THIS IS A NIGHTMARE SORT OF
RULING, IT'S MORE LAWYER DRIVEN
AROUND BRUSSELS, ANTIBIG TECH,
WE CONTINUE TO THINK FROM GDPR
TO MOVES LIKE THE COPYRIGHT,
EUROPE CONTINUES TO BE MUCH
FURTHER AHEAD REGULATORY WISE,
BREAKING UP BIG U.S. TECH,
THAT'S SOMETHING THAT INVESTORS
ARE GETTING MORE WORRIED ABOUT
ESPECIALLY SINCE WE GO INTO NEXT
ELECTION CYCLE.
>> LET'S GO BACK TO APPLE FOR A
SECOND, INVESTORS HAVE BEEN
TALKING ABOUT IT NONSTOP SINCE
MEDIA ANNOUNCEMENTS PAST WEEK,
SEEMS LIKE QUALCOMM IS NOT THE
OVERHANG, A LOT OF CELEBRITIES,
VERY LIGHT ON DETAILS AND
ULTIMATELY IF YOU LOOK AT 5-DAY
CHART ON THE STOCK, THE
SERVICE'S REVENUE IS SUPPOSED TO
BE TO SOLVE FOR FLATTENING OF
DEVICE SALES BUT PEOPLE SEEM TO
THINK IT'S NOT GOING TO HAPPEN,
AGREE OR DISAGREE ON THAT?
>> OH, DEFINITELY, THE
BATTLEGROUND AREAS AND SERVICES,
WE CONTINUE TO LOOK, 400,
450 BILLION OF VALUATION OF
SERVICES, LOOK AT THE
ANNOUNCEMENT THIS WEEK, STEP IN
THE RIGHT DIRECTION, ULTIMATELY
THEY ARE KEEPING THE PLAY BOOK
CLOSE TO VEST, A LOT OF
COMPETITION NETFLIX AND DISNEY
BUT OTHERWISE WE CONTINUE TO DO
SEE APPLE DOES MAKE A LARGE
CONTENT ACQUISITION, THAT'S
GOING TO BE SIGNIFICANT NOT JUST
FROM DISTRIBUTION PLATFORM BUT
FROM ORIGINAL CONTENT, THAT'S
THE KEY WITH BACK AGAINST THE
WALL.
DAGEN: DAN, IT'S DAGEN MCDOWELL,
I PUT OUT THIS CROCK POT THEORY,
I THINK IT WAS YESTERDAY THAT IF
INVESTORS BECOME CONCERNED ABOUT
THE GROWING COMPETITION FROM
APPLE AND OTHER CONTENT
PROVIDERS, THAT DESCRIBES DOWN
NETFLIX STOCK, THAT MAKES
NETFLIX ATTRACTIVE POTENTIALLY
TO APPLE SWEEPING THEM AND
BUYING THEM.
DO YOU THINK APPLE ULTIMATELY
BUYS NETFLIX?
>> WE HAVE SEEN THE BIGGEST
STRATEGIC APPLE AND COOK HAVE
EVER MADE WAS NOT ACQUIRING
NETFLIX.
I THINK IT'S BECOMING CLEARER
AND CLEARER, SERVICE AND
CONTENT, WE VIEW IT CBS, VIACOM,
LIONSGATE IN TERMS OF
ACQUISITION FOR APPLE EVEN THEY
THEY HAVE NOT DONE HISTORIC M&A.
MARIA: CONTENT IS KING RIGHT
NOW, LOOK AT THE BILLIONS BEING
PAID FOR ORIGINAL CONTENT.
WHAT ABOUT THE PRIVACY ISSUES
AROUND FACEBOOK, THIS MORNING
THE COMPANIES ARE ANNOUNCING
CRACKING DOWN ON FAKE NEWS, 2100
PAGES THAT ARE LINKED TO FAKE
ACCOUNT, THE MAJORITY TIE TODAY
RUSSIA AND IRAN, WHEN YOU TALK
ABOUT FICTIONS FOR THE COMPANY'S
PRIVACY ISSUES, WHAT DOES THAT
MEAN, I MEAN, THIS IS THE
BUSINESS MODEL, RIGHT, THEY SELL
DATA TO ADVERTISERS, CAN YOU
REALLY GET OUT OF WHAT THE
ISSUES ARE WITHOUT COMPLETELY
CHANGING THE BUSINESS MODEL?
>> WELL, LOOK, THAT'S WHY OTHER
EXECUTIVES ARE IN REVOLVING DOOR
AND LEAVING, AS YOU PLAY NICE IN
SAND BOX IN BRUSSELS, AS YOU GET
MORE TO PRIVACY, THAT'S THE
WORRY FOR INVESTORS, THAT'S
WHAT'S BEEN THE OVERHANG HERE.
IT'S A FORK IN THE ROAD
SITUATION, THEY WILL HAVE TO
BALANCE THIS BECAUSE ULTIMATELY
ESPECIALLY WHEN YOU LOOK AT WHAT
HAPPENED IN INSTAGRAM AND THE
MESSAGING PLATFORM, THAT'S GOING
TO BE THE KEY FOR FACEBOOK,
THAT'S WHY IN FANG NAMES RIGHT
NOW, SOME CLEAR OVERHANGS
ESPECIALLY ON THE SOCIAL MEDIA
NAMES WITH FACE ON TARGET ON ITS
BACK.
>> THEY HAVE TO POLICE THE SITE,
GET THE FAKE ACCOUNTS OFF THE
SITE, THEY HAVE TO GET PEOPLE
BUYING FAKE SITES OFF THE SITE
AND AT THE SAME TIME THEY HAVE
TO MAKE MONEY OFF OF ADS, HOW OH
DO THEY BALANCE THOSE TWO FOR
THE MARKETPLACE?
>> WE BELIEVE IT'S CONTENT
DRIVEN AND FUNDAMENTALLY
FACEBOOK RIGHT NOW, THEY HAVE TO
DRAW MORE CONTENT ON THE
PLATFORM FOCUS MORE ON USER
ENGAGEMENT.
THEY WILL HAVE TO DO PRIVACY
ISSUES BUT IT GETS BACK TO THAT
IS CORE BUSINESS MODEL FROM
ADVERTISING PERSPECTIVE, THAT'S
WHAT INVESTORS CARE ABOUT AND
EVEN INTERNALLY AT FACEBOOK
THAT'S WHY THEY CARE ABOUT,
THAT'S WHY ZUCKERBERG, THERE'S A
BATTLE GOING ON INTERNALLY
BECAUSE THEY HAVE TO STICK WITH
CORE KNITTING BECAUSE OTHERWISE
THERE COULD BE NIGHTMARES DAYS
AHEAD.
MARIA: ALL RIGHT.
DAGEN: THERE ARE MEDIA COMPANIES
BUT THEY CAN'T BE SUED FOR
DEFAMATION UNDER FEDERAL LAW AND
AGAIN, I BROUGHT THIS UP, DEVIN
NUNES LAWSUIT AGAINST TWITTER,
PUSHING THE LEGAL BOUNDARIES OF
WHAT IS GOING ON BECAUSE
MID-90's LAW YOU CANNOT SUE
INTERNET SERVICE PROVIDERS AND
OTHER COMPANIES BECAUSE THEY
DON'T TECHNICALLY CREATE CONTENT
AND AREN'T MEDIA COMPANIES BUT
THEY ARE.
>> ON DAN'S LAST POINT, THEY
DON'T WANT TO STICK TO TO THE
KNITTING ANYMORE, ZUCKERBERG HAS
COME OUT AND SAID IT'S ALL GOING
TO BE PRIVATE MESSAGING, THEY
HAD TO MAKE PIVOT TO MOBILE, YOU
WILL HAVE TO BET ON A WHOLE NEW
COMPANY, THEY ARE EXITING PUBLIC
ARENA.
DAGEN: IT'S NOT A WHOLE NEW
COMPANY, THEY ARE RECKLESS WITH
PEOPLE'S PRIVATE INFORMATION AND
THAT'S WHAT INVESTORS KNOW AND I
THINK THAT'S WHAT THE PUBLIC
KNOWS, IS YOU'RE SAYING IT'S
PRIVATE BUT YOU CAN STILL SEE
ALL MESSAGES AND ALL
COMMUNICATION AND WHAT ARE
ZUCKERBERG AND SHERYL SANDBERG
GOING TO ACTUALLY DO WITH THAT,
DO WE TRUST THEM, SOMEBODY TOLD
ME DOING BUSINESS WITH THEM LIKE
YOU CANNOT TRUST WHAT THEY TELL
YOU.
MARIA: YOU MENTIONED DAN AND YOU
MENTIONED DEVIN NUNES AND
LAWSUIT AGAINST TWITTER, MORE
ARE COMING I UNDERSTAND THE
DAILY BEAST, HE'S GOING TO BE
SUING OTHERS AND HE'LL BE