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00:00From the heart of where innovation money and power collide. In Silicon Valley and beyond. This is Bloomberg Technology with Emily Chang. I'm Emily Chang in San Francisco and this is Bloomberg Technology coming up in the next hour taking responsibility. The House committee investigating the January 6 attack on the U.S. Capitol has subpoenaed big. Social media giants demanding more information from alphabet media. Twitter and read it. We'll tell you what they want to know. Plus we stay in Washington where tech exacts met at the White House in an effort to combat cyber security threats. We'll hear from a top Coogler who was in the room. And tick tock. Megastars are raking in the dough. And a lot of it. How social media careers could pay as much as being the CEO of Starbucks. All of that in a moment. But first it's going to look at the markets are at Ludlow here and tech stocks having a rough afternoon at what happened. Yeah rough afternoon indeed because we started Thursday session brightly. It's the same old narrative you might think content into a bit of a broken record. But a number of Fed speakers talking about the outlook for higher rates impacting high valuation high multiple tech stocks and the Nasdaq 100 follow suit falling two and a half percent to its lowest level since October. Semiconductors started Thursday so brightly but also gave way later in the session. You also saw selling in U.S. listed Chinese companies 80 ISE on the Golden Dragon index. And then with this risk off mode crypto followed suit. Really interesting. Some specific move is on Thursday. Tesla is really one to watch for the moment. It has had a mixed start to 2020 to heavy selling on Thursday took it into negative territory. But I want to show you one bright spot if you'll give me a moment. Ford up on Thursday. But hitting a little bit of a milestone. You see there a gain of two point to five percent come into my Bloomberg terminal. Ford hit just briefly a market cap of almost one hundred billion dollars just picking one hundred billion dollars during the session on Thursday. I think about two thousand nineteen. I'm in L.A. with Idris Elba. Right. They unveil the marquee and the company has 30 billion dollar market cap. It's in the doldrums. How things have changed for this company since then and the evey story around Ford really picking up pace. Really interesting one to watch. That's me in the studio. Of course I told us about that selloff in risk assets in Bitcoin which has kind of been steady in a range for the last few days. You see there on the far right hand of the screen screen also selling off below forty four thousand dollars. Now back towards forty two thousand dollars taken Emily. All right Ed thanks much. Now pointing the finger at social media. The House committee investigating the January 6 attack on the U.S. Capitol has subpoenaed Facebook parent meta Twitter YouTube parent alphabet and Reddit demanding these companies turn over posts videos and any other information tied to the planning of the insurrection. Who makes Naomi next. Joining us now with more. Naomi how significant is this development. I mean it's a significant escalation in you know the scrutiny facing these companies over January 6. You can remember even you know just a few months ago we saw further revelations particularly about Facebook role in facilitating the organization of these riots through documents surfaced by then whistleblower Francis Hagen. And so now you know essentially Congress is saying OK hand over what you got. We want to see how this all played out. I was intrigued that they called out these platforms directly and blamed them for specific things for example the live broadcasting of the insurrection on YouTube. Calling out the Donald sub Reddit where the House is claiming that that's where much of this attack was planned. How much legitimacy do these claims from the select committee have. I think there has been some significant evidence that social media played a role even mainstream social media sites. So for instance in the case of Facebook what we saw is Facebook would take down a stop to steal group and another one would pop up in its place. And they were some of the fastest growing site groups on on the Web site. And so it couldn't keep up with all that content. And you know there's there's been other sort of evidence on some of these other social media platforms as well. And the question is when did these executives know this was a problem. What did they they do about it. And of course you know obviously there were outrage of socially upon forums in which activity was going on as well. But the mainstream mainstream sites played a role. Well and obviously they have the evidence of what was happening on these public forums. Do we have a response yet from Facebook from Google or YouTube Twitter Reddit. We don't have a response yet but we you know we would expect that they'll say something like they plan to work with the committee. The question always is in these instances is how quickly will they be able to turn over their documents and whether they'll be you know some sense in writing about what qualifies and what does. OK. Under under the subpoenas Bloomberg's name I mean next to cover social media for us. Naomi thank you. Meantime also in Washington executives from Apple Amazon Alphabet Metta Microsoft and other tech companies met with White House officials to talk about cybersecurity in particular an incident from last month that sent shockwaves through the national security community. Who was Jack Gillum. With us now for more talk to us about why the White House held this meeting and what do we know about the outcomes. So if you remember a few weeks ago Emily there was this love for J. This sort of weird piece of software. Nobody had really heard of in the mainstream that essentially had this massive security flag. But all of it that affected probably unfold millions of systems around the world. And that really drew attention to this nature of what it's called open source software software code that's available free for the public to use to modify. You see them on repositories like GitHub where coders can add freely add their changes. White House officials really the U.S. government is really concerned about is the fact that this code may not be as secure as people think. The idea that everybody on the war in the world can log in and collaborate and fix fix these things. It may not be as secure as you think it is. Tell us more about why open source software is being seen by the White House as a significant national security threat. I think it's partly because open source software really powers a lot of devices that make up the modern Internet. You look at a Google Android phone that runs the Linux operating system. Our version of it you see all sorts of software that run on TV is on smart devices all sorts of these products that use open source software and might be using pieces of code that could be insecure. I think this lock for Giants instance really Drew and I really got a lot of people by surprise took them by surprise that in fact this whole system of you know if everybody looks at the software everybody contributes we're gonna produce the best possible outcome. Might not have been the case. And it wasn't in this matter. And it caused the developers you know a small group of volunteers who worked on the software it really got them to scramble. So it really had the White House from a national security standpoint say look there's a lot of really important pieces of software out there where this could be you know the next sitting duck. How can we refine these processes so companies who develop or even use this software aren't going to be putting out a piece of code that lets at worst hackers take control of networks or computers. President Biden has been saying cybersecurity is a top focus for his administration going all the way back to Colonial Pipeline. What concrete steps has the administration actually taken so far to keep the country more safe. Well there's been a few and the biggest one is this elevation and this prioritization of cyber security and this administration and Neuberger the deputy national security adviser who has this expansive cybersecurity portfolio a new cyber director that the SSA the Cyber Security Infrastructure Security Agency and Homeland Security all who are trying to build up these their departments bring on people and not just you know secure federal networks but also provide guidance to the private sector. You know we have a midterm election coming up very soon. Not to mention all presidential election in 2024. And you know these people at DHS are also responsible for that as well. So it's an increase on the government to provide guidance. It's it's it's been an increased effort on the federal government to look at their own systems. As we know the U.S. government is a massive sprawling entity that has millions of computer systems of its own. And putting that focus just on this topic alone especially folks a bipartisan effort really on Capitol Hill is really applauded this administration by saying that they're they're glad that they are taking this seriously. All right Jack Allen who covers cybersecurity for us. Jack thank you for that update. Coming up we're gonna have much more on that White House cyber security meeting with Google executive Phil Venables who was in the room. That is next. This is Boulder. Beep beep beep beep beep. In terms of the session today I'm not going to speak on behalf of the companies in terms of the commitments they made but it was an incredibly constructive discussion about ways that the public sector in the private sector can work effectively together to ensure that public sector systems are more robust and resilient and private sector systems are more robust and resilient. National Security Adviser Jake Sullivan they're talking about the meeting he helped convey with some of the top tech companies over concerns about security with open source software. While Sullivan didn't have much to say about the meeting. My next guest does. I'm joined now by Phil Venables. He is the chief information security officer of Google Cloud and attended that White House meeting. Phil what's your big takeaway. How did it go. Yeah thank you. I think it went really well. You know it's very pleasing to see the government reaching out and seeking to collaborate with all of the large tech companies and the foundations and many other organizations. And I think the interesting thing there's already been a lot of work done on this. For example the industry set up the Open Source Security Foundation last year. We and many other companies specifically Google we committed over 100 million dollars to that. And many other companies have committed likewise and pledged that funding. So there's a lot of work going on but it's really pleasing to see the government reaching out and wanting to partner with the private sector to really drive this important topic forward and making sure that we're probably appropriately defending the infrastructure that relies on open source software. Now with so many agencies and departments involved you've got the National Security Council sees the Defense Commerce. Is it confusing as a private company like Google do you know where to turn when there are issues. Yeah. I mean we've got very very close partnerships. I mean I think you know to the to the outside it can often seem confusing. But for those of us that work in the industry we we see each individual group within the government has its own particular purpose. And they they're increasingly coordinating very well and partnering with us. And we have great partnerships with the the National Security Council the the White House cybersecurity director DHS sister organization NEST many others. And we recognize each has its purpose and that they're quite well coordinated. And in the private sector as well we coordinate amongst ourselves to to drive that partnership forward. So we think it works quite well. I wouldn't say everything's perfect but things you know things are continuing to get better and that partnership is key. Now look the concern is that millions of devices could be at risk right now. If if these kinds of collaborations don't happen what is the threat. Well all of our digital society is highly dependent on software a large part of that is open source software. The good news is a lot of that software is already quite well maintained. There's a lot of highly curated projects that are managed by the large tech companies in partnership with the maintainers. But there is still a long tail of other issues as we've seen recently. And so we definitely need to keep improving. And through things like the Open Source Security Foundation the commitments we've made the commitments that were we're partnering with government on we're going to keep working through all of the other issues to to keep helping and helping make sure we're managing the risk here. And I don't think any of us are taking taking any less vigilance on this is going to be a big area of focus for the entire tech industry. All of the consumers of open source software is key for us to keep partnering with the government and having that strong public private partnership to really drive the agenda forward to defend all of our critical infrastructure. Now I got to ask you because the House Select Committee just subpoenaed Alphabet and other companies for more information tied to the January 6 attacks and this is a security issue potentially even a cybersecurity issue. Do you think YouTube played a role in those attacks. Well I'm sure there's there's there's plenty of people at Google that are going to work effectively on and on and on talking about those issues. But for me today my entire focus today has been on I've been on the open source security issue and I'm partnered with government to just defend our critical infrastructures. And that's been that's been all of my focus and you know is a big part of my focus going forward. So look Evan we're approaching you know where we're going into another election. What kind of assurance can you give us. Can you give Google's users that Google is taking all the precautions with their accounts and their information given that the attackers the cyber attackers are always one step ahead it seems. Yes. So we have very large numbers of highly capable teams that work across all of the cyber threats that face all of our all of our products and services. And we're very very focused on protecting our users our consumers our enterprise customers and partnering with their security teams and partnering with all the relevant government agencies. So very key focus for us. And it's something that we're always vigilant about especially as threats evolve. And we've had a lot of attention to this and partner with the right organizations to make sure we can stay focused on that protecting our protecting our users and our customers. All right. Phil Venables Google Cloud chief information security officer thank you for joining us. Coming up when ticktock stars make more than top CEOs we're going to talk about the creator economy and how. Tick tock personalities are building their own empires and whether the phenomenon is going to last. That's next. This is Bloomberg. Tick Tock is quite the lucrative business with subs. Tick tock stars making more than America's top chief executives sometimes by quite a margin. Let's dive more into this now with my next guest May Kowalski. She is the CEO and founder of the Influencer Marketing Agency obviously. So this might be obvious to many people but so many people still don't understand how much money these tick talkers are making. Explain the value here. Sure. So some of your largest take talkers from Charlie de Malo to her sister Dixie to Addison Ray. They have hundreds of millions of followers. And so they are there when they work with a brand. That brand is now seen by a few hundred million people. And that's pretty huge. Now you look at the numbers and Tim Cook for example making ninety nine million dollars a year. That's what Apple has disclosed. Kylie Jenner. Five hundred ninety million dollars a year. Yes. Tim Cook gets one off stock options throughout the year. But you know walk me through this. Is this something that you even you could have fathomed a few years ago. Oh definitely. There's so much room here for growth for these really large tech talkers and really large social media influencers. I mean if you have millions of followers they're going to they're going to care when you partner with a big brand. They're going to care when you want your own brand or when you star in a Netflix show like Addison Ray adjusted. So these people have a really hardcore fan base and they're so excited to just follow them wherever they go. And so now these traders are really thinking like business owners and they're creating multiple revenue streams and they're really bringing in the money. Now a lot of people I've heard a lot of people say do these tech talkers actually do any work. How do you respond to that. I mean gather a lot of work they're entertaining people and they're creating content almost 24 hours a day they're really servicing their their biggest fans and they had these huge audiences who care about if they go to Dunkin Donuts and they care about what their favorite Dunkin Donuts drink is. And that's really important. And that adds a lot of value. Arguably as much value is doing a really good job as a CEO when these major companies. Where do you see the future of content creation going. Obviously ticktock getting a lot of attention now. But you know the more mainstream platforms YouTube Instagram Facebook also investing heavily here. What's next. We'll take DAX now. The most visited site on the Internet IPO Google this year or for 2021. So it is very mainstream. It's doing extremely well. And people love short form video content that they can just watch and scroll and share with their friends and be entertained and learn a ton more. So I think that there's so much more growth here. Every major platform is talking about how can I do short form video. How can I do it better. And how can I recruit these creators to really be creating and loving my platform. And how did these creators expand and branch out into other verticals whether it's media beauty fashion and make more money other ways. Yeah. So they take after these tic talkers are really building business empires for themselves. They're building up business teams. They have managers. They have agents. They really get to decide hey what do I want to do now. Do I want to become a beauty founder. Do I want to create my own fashion line. I don't become an actor to become a musician. They can really do any of those things because they have such a large audience that's already tuned in and excited to see what they're going to do next. What do you see this business headed in the metaverse. I mean is you know the future of augmented and virtual reality. I assume it's opening new possibilities. Yeah well you can not. You could have only just you know watch Charlize take talks but you could also potentially sit next to her and hang out with her in the metaverse which could be really interesting. And I think that it's really gonna open up what type of content these creators can make. You know is it augmented reality filters. Is it their own. And if. There's just so many different things here that could that could happen. And these creators are gonna be right there ready to create their own their own stamp on the metaphors. So walk me through a day in the life. We've got about 60 seconds. Life you know a tick. Charlie wakes up. What happens first. What's the day like. How much time do they spend on doing these short form videos and other things. Yeah definitely. So if you're a really big tech talker and you're making millions of dollars you definitely have a whole business team behind you. You have a content schedule. You have hair and makeup team ready to go. And you have a number of assistants and people supporting you. So you really focused on creating amazing content. Usually you have a team that's helping you storyboard or if you're kind of more off the cuff and you're just you just do one off jokes and you can do that as well. But they really you know wake up start filming figuring out which platform to be posting to what the cadence is for that day and then looking over you know their other revenue streams. Are they launching a new lipstick a new concealer. Are they doing a major partnership with a large brand. Are they flying to Fashion Week to sit front row at a fashion show. There are really countless things that they could be doing but it's all about hey what am I what do I care about. What is my audience going to be really interested in. And they're gonna follow along. All right. Well I got to say as someone who's tried to do some decent tick talks it does take time. It does take work. It's hard and it's hard. It is it's it's not as easy as it looks. Make our while ski. Appreciate you joining us and sharing the obvious learnings that you already know with what the rest of us don't. Founder and CEO of obviously. Thank thinking. Meantime London led all other European cities in tech financing. Last year. There was a record twenty five and a half billion dollars in fresh investment in the British capital. This according to a report from the city's promotional company London and Partners London ranking fourth globally for venture capital investments in urban areas behind the San Francisco Bay Area New York and Boston. Coming up the future of the cloud. We will take a look at what trends to watch in 2022 with cockroach labs. No it's not what you think it is. It's a database startup that wants to take on a W as an oracle. This is Bloomberg. Welcome back to Bloomberg Technology Emily Chang in San Francisco. While much of corporate America has their heads in the clouds the cloud related stocks have had a rough start to the year at Ludlow. Here with the latest what are these clouds DAX doing. Yeah it's interesting. They really like. Case in point of what we're seeing in financial markets. We talked about how in Thursday stocks fell away. In the afternoon the NASDAQ 100 see on the screen down two point six percent but really outside selling not just in cloud stocks but basically software and I.T. as a whole. You can see the Global X cloud computing ETF which a basket of kind of high growth cloud and software stocks but also some stalwarts of course like Microsoft and Google the one distress on Thursday. The next chart shows that performance of that subsector so far this year against the Nasdaq 100. Remember the narrative here is higher rates discounting the future value of profits. Well if each profitability of these tech companies and the white line that global ethics cloud ETF has really underperformed in fact it's fallen 10 percent so far this year double the declines we've seen on the Nasdaq 100. But it's really nothing to do with concerns about the sector. Bloomberg Intelligence for example think that cloud could see annual growth of 20 percent. Not for just one or two years but for the next five years. You compare that for example with I.T. spending which they see growing at four to five percent. This story really is about companies with high multiples stretched valuations higher rates and you know investors pulling out that section the market. But it was a heavy area of action on Thursday Emily. All right. Thanks. At. Well what are the cloud trends to watch in 2022. And what is the future of the cloud as we head towards the so-called Web Three. Let's talk about that and more with Spencer Kimball. He is the co-founder and CEO of Cockroach Labs a database startup that wants to take on tech giants like Oracle and Amazon's AWOL Spencer. Thanks for joining us. I have to start out with why is a cloud company calling itself Cockroach Labs. Well yeah that was a question I was expecting. I just as a preface here when we named the project Cockroach. TB does back in 2014. I wasn't really intending to explain that on Bloomberg Tech technology these days. I find myself in front of Fortune 500 CEOs and CEOs all the time explaining it but really it is supposed to be evocative of the databases capabilities. So this is a very resilient database. Think about the entire East Coast going out in your cloud service provider. You want your business to keep running and that's what Cockroach is designed to do. And as everyone who's ever had a cockroach problem knows they're pretty resilient. So that's that's where the name comes from. All right. So you want to be the cockroach for all of these big businesses. You're trying to take on giants like Amazon and Oracle with very deep pockets and very entrenched customers. How do you do that. Well we have some incredible advantages. For one we're actually building this from the ground up from scratch. So we're building a database in 2022 that is going to really effectively exploit the cloud whereas these more additional players that have most of the market today they have a really big problem with sort of an innovator's dilemma. We've got a big revenue base a lot of legacy applications to support. It's very hard for them to reinvent themselves to really make use of what the clouds providing. It's almost like trying to set sail with an anchor down. So we actually have this fresh start and we can really build a database that will meet the needs of the next decade. And it's important to keep in mind especially when you just had this segment about cloud stocks and where they're going in the current market over the decade ahead it's going to be extremely interesting because you're going to have more things built in the next 10 years than all the legacy applications in the last three decades. So that's an incredible opportunity for companies that really can bring infrastructure to market DAX place the cloud. You just raise a massive amount of funding 270 million dollars valuation five billion dollars. Where do you see the cloud market going this year and how do you plan to use that money to stay ahead of it. Well I think the club market is absolutely going to continue over. When you kind of zoom out and when the fluctuations will be in the next several months as interest rates may increase and so forth. But if you zoom out and you look at a three year time horizon clouds only going only going to go up. We raise this money because it was a favorable time to do so. We didn't quite meet it. But when you look at the next three years we will absolutely be able to use this. And it's really about innovation. That's where that's why we have the company we have and the customers we have an attraction we have. We need to continue that. We need to keep pushing the envelope. Always setting our sights further than what the current status quo is. And also there's a you know just an opportunity for us as a business to expand into new markets and fundamentally to support our customers. We always look at our customer's problems as our own problems. And there is a big investment there in order to help companies really move to retrench to rebuild effectively and to build new use cases that actually use the cloud appropriately. What's the cloud going to look like in Web 3. And is Web 3 really a thing in your opinion. Yeah it's a thing. I mean it's kind of a catch all concept in some ways. What would the web look like. I think it's really about just how quickly can bring something to market and how many consumers or other businesses depending on what your your your company does. How many of those can you reach. How quickly. And this is really an opportunity for infrastructure that's delivered in the cloud as a service to really propel companies more quickly to accelerate their ability to bring new products and services to their customers and win in their verticals. So it's companies like Cockroach but also the largest companies like Amazon and Google and Microsoft that are building these hyperscale clouds. It's the combination of those services and the clouds that are really making it so that what used to take months or years can now be done in weeks or even in some cases days. It's a pretty exciting time. We've seen a lot of engineers ending up in the CEO suite. Sundar Pichai of course the CEO of Alphabet. You've got Parag now CEO over at Twitter. You're a developer engineer yourself. Tell us quickly a little bit more about your journey from developer engineer to founder CEO. I'll give you a little bit of a genesis. I'm trying to make it quick. I went to Berkeley back in the 90s and I wasn't interested in databases. It was really a concern. When I graduated just immediately databases became a big problem. This was during the dot com boom and scale was a big issue. Databases weren't really built for that kind of scale. Then I went to Google and Google had their own point with databases. And over the ten years I was there with my two co-founders. We saw Google build around databases from scratch. When we left Google in 2012 and we started our own private photo sharing company it was a big problem. We saw that what Google had wasn't available in the larger open source ecosystem. And so that actually really compelled us to say we have this big problem. We know how it should be solved. We know where the world's going because we just saw it all happen at Google. And we know in ten years that's what everyone else is going to be doing. Let's build the database that's really going to support that. So that that's really a really great example of a good way to start a company which is you are actually a potential customer of the product you're building. There's really no daylight between. The problem is that I was facing as a developer and the problem that cockroach now is solving for developers. And so it's I think that's a virtuous start. And that's probably why many engineers former software developers are actually finding their way into the C suite. Well cockroaches certainly get your attention and you got ours Spencer Kimball co-founder and CEO of Cockroach Labs. Thanks for joining us. We'll keep our eye on you. Coming up property prices sure on earth as younger investors turn to the metaverse for virtual real estate. We'll talk about South Korea's metaverse property boom next. This is Bloomberg. Twitter is really shifts to a work from anywhere model during the pandemic as well as implementation of a requirement to add more people of color to final job candidates Slates helped the social media company post significant gains last year in hiring black and Latin next workers. Bloomberg's Kurt Wagner joins us now to explain a rare bit of good news. Kurt here Twitter got a lot more diverse last year. How did they do it. Yeah. Well if you think about it it makes sense. They we had an interview with them yesterday and they said look when everything's virtual it really doesn't you know mean there's there's no place in the country no place in the world that's really off limits for recruiting. So the fact that they were able to do more virtual recruiting events they were able to interview people in areas that are maybe more predominantly black or Latin X and people who were hired from those areas didn't have to move. You know you didn't have to come to San Francisco. You didn't have to go to New York if you wanted to accept a job. So they saw increases in job acceptance among those groups as well. And I just think you know the fact that things are moving remotely it just opens up a lot more opportunity for people who don't necessarily want to live in certain cities and companies can go out and recruit more aggressively there. Are we going to see similar improvements at other companies. Well you would think so right. Because Metta for example is working remote right now and through March and CEO Mark Zuckerberg has said he wants you know or a foresees as much as 50 percent of the workforce admitted to be remote in the next five to 10 years. So you would think that this trend is going to impact a lot of other tech companies besides Twitter. It might not be as quick as Twitter. Twitter is a little smaller. So you know you're able to see these jumps a little faster because of that. But at the same time I do think other top tech companies will probably benefit in the same way. OK. Bloomberg. Kurt Wagner will be watching. Thanks. Well frustrated by soaring house prices and a falling faith in the traditional economy South Korea's youth are turning to the metaverse to invest in virtual real estate. Bloomberg Quicktake Stella Ko speaks to some users in Seoul who are building wealth on one platform called Metaverse 2 that aims to recreate Earth digitally. I'm buying and selling virtual space. Owning the land that I can't have in real life makes me feel great. We've all heard about the metaverse a virtual universe that blends aspects of digital technologies with virtual reality. What is the matter versus the metaverse jump into the metaverse metaverse. Now it's become a hot property market with investors putting in millions of dollars. South Korea is one of the biggest players in the metal market and it's being championed by young people who have had enough of the economic inequality. So they're looking to make money in the ultimate universe instead mi young milk and drink in their users in Seoul. I spoke to that had been investing in one of their platforms called Metal Bridge to You which aims to recreate Earth digitally. Thanks for having us on the metaverse. So which of the worlds do you own on this metaverse platform. A ton of you have land in both New York and South Korea. Where abouts in New York do you own your hair. So I have a lot of land in New York and I have a street vendor selling hotdogs on Wall Street here. When the metaverse gets more developed I plan to open a hotdog store. I also bought an island for some private leisure time. It's a park like island called Middlebrook Park just on the right side of Manhattan. Rather than buying for investment I'm mainly buying what I want to have. Buying areas that can tell a story. There are so many people actually buying this like empty water or medium. And then he did with future updates. We will be able to mine some resources in the sea and in the mountains. With that resource. You can later construct a building. So many users are buying parcels of ocean river and mountain. Take Haidi Lun. The part where I feel the biggest gap between the metaverse and the real world is the financial area. CAC made over 40000 U.S. dollars in just two months. Through his investments in the Metaverse 2 platform you're gonna watch him. You can just sit tight and earn interest income of about 3000 to 5000 dollars every month. But that's the salary I earn by working so hard in my day job. And the South Korean capital where almost half of the country's population lives the average price of an apartment has doubled in the past five years reaching over nine hundred fifty thousand dollars by July 20 21. President Moon Jane's real estate policies have seen the average price of an apartment in Seoul rise by around 90 percent since he took office. Wanting to then. My parents generation is worried saying why do young people try to make money so easily. Isn't this gambling. I think the reason why millennials and ginseng are so drawn to the metaverse is that it is very difficult to find a job right now and house prices are preposterously high. You can never buy a house with your salary. South Koreans were the most active users with around nine point one million dollars spending on a metaverse platform. Earth two in front of you. If you look at the infrastructure engine it is true that many companies like Equinox in the US or Amazon with its data center. North American companies are far ahead in the metaverse industry but perhaps from the users or consumers point of view it is true that Korea has a higher number of interested users compared to its population. So I think there are more users in South Korea because Koreans are so accustomed to high speed Internet. They are so used to this kind of media the Internet and the metaverse. The initial real estate value of the first two was 10 cents per child. For all the land in Seoul and New York by now landmarks like Seoul's lofty tower I priced that over ten thousand dollars per tile. And the Statue of Liberty in New York is going for over seven thousand dollars per tile. It's not just property. South Korea's biggest companies have also jumped into the metaverse. Samsung unveiled the country's first metaverse themed ETF in October last year and neighbors Metrobus platform is a pedo has over 200 million users globally. SDK Group is planning on issuing a coin for its metaverse platform. If land the government is also backing the metaverse as a part of its digital new deal. The government pledged to provide up to 26 million dollars this year. I predict original technology will be developed through this new jobs will be created and games that support the country's important educational functions or businesses will develop innovatively by. Professor Kim has some concerns. Which current. The current virtual real estate market does not have a present value. It is market where we buy and sell among ourselves based on its future value. Since this market as yet not been able to prove its present value I consider this part to be risky. Being immersed in a small five inch smartphone screen or pressing a VR headset on people over 50 are uncomfortable with this. This could be a means of creating another digital divide. In the end he told me one single reason young people are jumping into the metaverse while knowing its risk is because they want to make profit. In the past there was only the stockmarket or gold. But now the metaverse is in the spotlight as a new form of investment. I think this is the new reality not an illusion. Technologists say the metaverse will be more integrated into our lives and grow into a fully functioning immersive economy in the future. All economic and daily activities will occur simultaneously in the metaverse and in real life. Second the power is collapsing in a place where time and space could be physically controlled. Young people rise up against this crumbling power and many tables will be turned in. All industries. Stella Co there of Bloomberg Quicktake. Coming up big shoes to fill for Netflix has a streaming service looks to find the next squid game. How branching out to the rest of Asia could be the company's key to success next. This is Bloomberg. It took squad game just four weeks this past fall to become the most watched Netflix show ever released in any language. But when it comes to the streaming giant's global ambitions what happened afterwards matters even more. Viewers who devoured squid games started watching more shows in Korean. Woolworths took a shot joins us now to talk about his latest Bloomberg big take. And Lucas I was one of those viewers. It unlocks so much more content. Talk to us about the power of this phenomenon. Yeah. I mean Netflix recognized the potential in Korea around the time that it first went there which was back in 2016 as as was the case in a lot of places outside the U.S. for Netflix. First when it struggled in the first few years did not a lot of customers didn't have a lot of programming people wanted to watch. But starting in about 2019 thanks to deals that did with a lot of companies in Korea and and then the development and production of original shows it's really produced a number of popular shows in Korea. So much so that if you look at the data that Netflix now releases every week South Korea contributes kind of the second largest number of popular shows her top 10 shows for Netflix behind the US more than any other market. And that's been a key not just to adding customers in South Korea but all across Asia and delighting viewers pretty much everywhere. Asia is so vast so many different cultures countries so much color. Where else will Netflix go to find more stories like this. Well it's its three biggest markets in Asia right now or Australia which almost doesn't count because its English speaking. They went there early. They've had a lot of success kind of from day one and then Japan and South Korea which are its two strongest markets right now. Also the places supplying the most number of popular shows not just in Asia but everywhere South Korea because of just a lot of scripted programming and then Japan because of anime. Netflix had identified India as a sort of third other key market in the region. It's a place where it's had far less success than South Korea and Japan and India has has bedeviled know many a Western media company. I think you'll also see them try to find some openings and parts of Southeast Asia. They their executives talk to us about making shows in Thai. For those in Thailand maybe some shows in Mandarin for Mandarin speakers across Asia. Surely Netflix doesn't have a lock on this strategy now we all know it worked. How can the competitors keep up. And how much of an advantage does Netflix have. Given all of the data they have from their viewers. Right now Netflix has a pretty big advantage not just because of some of the data it has about what people want to watch but also because it is so much bigger in a lot of these markets. No it has. It has a big head start in South Korea over places like Disney Plus and HBO Max and Amazon. That's not true everywhere. Amazon is bigger than Netflix and both Japan and India and is about to make a big push into Southeast Asia. Disney plus is massive in India largely because of its cricket rights that it got from this company Hot Star. But I think by and large Netflix is seen as the market leader in most of these countries and has invested a lot more resources. They're all trying to catch up. But Netflix tends to be of the opinion that as long as it continues to make shows that people want to watch it's going to keep growing. All right. So Lucas what's on your watchlist and what should be on ours. That's a really good question. I most of most of the things on my watch list I will admit are not. Netflix shows. But there are. I do want to go back and read watch the first two seasons of Netflix says Formula One show. I watched the third season and everybody told me that I jumped in midway. And if you wanted to go with with the Korean show I've heard really good things about. It's okay to not be okay. And really there's there's no shortage of good Korean shows on Netflix right. Well we're always looking for good recommendations. Thank you Lucas Shah for that update. And that does it for this edition of Bloomberg Technology. Make sure you tune in tomorrow. We've got crypto coverage with ISE Cantor of Venture Fork and ex Claudia Gast of Global Tech Acquisition Car. And we talking about Sparks and Donald Baer a black power guy trying to turn buildings into Tesla. You don't wanna miss it. I'm Emily Chang in San Francisco. This is.

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