NETFLIX INC — Call Transcript 2026

Thank you everyone for joining us. My name is Sean Diffley. I'm joined by Thomas Yeh from the Morgan Stanley Media and Entertainment Research team. We're extremely excited to have Spence Neumann from Netflix here. I'm gonna give a quick disclosure. For important disclosures, please see the Morgan Stanley Research Disclosure website. If you have any questions, reach out to your Morgan Stanley sales rep. A bit of a different conversation than we might have been having a week ago, but we're gonna get into all that. To kick us off, Spence, maybe you could level set for us today the health of the business as you see it over the next few years and your key priorities at Netflix for 2026. All right. Well, thanks for having me. Good to see everybody. Well, look, yeah, I guess it's a bit of a different conversation, but also more the same for us. I mean, we feel great about our business, so and the position we're in. We feel great about our kind of, our growth opportunity ahead, our organic growth opportunity on a short, medium, and long term. You see that a bit in our 2026 guide that in our Q4 call. We're really healthy outlook for the business. We guided to, and a kind of 12%-14% revenue growth, operating margins increasing to 31.5%, rough doubling of our ads business to about $3 billion in 2026, about $11 billion of free cash flow. Really healthy outlook for us. You know, our focus remains very similar. Our core focus is kind of drive the strength in our kind of and continue to strengthen and improve our core business in terms of improving our content or core content offering around film and series, improving our product experience, continuing to grow that ads business, continuing to expand our entertainment offering and drive, you know, strong, healthy revenue and profit growth. We also want to expand into new entertainment categories, building out live, building out things like podcasts. Continuing to kind of build that out as well so that we're extending and growing. Overall, that kind of focus remains the same. You know, it's one of those things where I know it sounds boring, but even though we're pretty big, we're pretty small. Every way we look at our addressable market, we're still less than 10% view share in every country in which we operate. We're about 7% of addressable revenue market. And, we're, you know. We're, sorry, someone's buzzing me and it's distracting me on my phone. We're small in kind of every way that we kinda measure the business in terms of even households, we're less than 50% penetrated. We've got a strong runway for growth in the core as we continue to focus on that, and that really is our focus. Again, I wanna kinda reinforce it's a runway of organic growth that we feel great about. Great. You referenced the double-digit revenue growth for this year. I would say one thing the market was a little surprised by was the level of cash content investment. Yeah. About $20 billion, that's 10% year-on-year growth. By implication, your margin outlook was maybe a bit lower than what we've seen in the past. You know, maybe take a minute to talk about why you feel this is the right level of investment for the business today. Yeah, sure. You know, as you say, we're we guided to about $20 billion of cash content spend, up about 10% over last year. It's really no change in our approach. You know, we've always talked about is that we want to kinda drive healthy double-digit revenue growth for as long as possible. We wanted to accelerate that revenue growth. As we did, as we have shown we are doing, we wanna kinda spend in a healthy way into that growth, spend at a lower rate of growth than our revenue growth. We've been doing that for a long while now. As you saw from our healthy revenue growth outlook, it enabled us to kinda grow our content spend growth. We grew about 7% year-over-year in 2025. We're guiding to about 10% this year. The ratio of cash spend to content amort is essentially unchanged. It's a roughly 1.1 ratio of cash spend to content amort. You know, we set margin targets. Our approach is to gradually grow our margins by growing our spends a bit below the pace of our revenue growth. We've been doing that pretty, you know. We have a pretty demonstrated history of doing that, setting those targets and growing gradually. The rate of margin expansion, you know, varies year-to-year depending on opportunity. We've, you know, we've averaged over the last five years about 2 percentage points, a little over 2 percentage points of margin growth per year, and this guide is up 2%. you know, it's quite consistent. Again, if you go back, you know, I started in January of 2019 at Netflix. In 2018, we had 10% operating margin. We've grown from that to a 31.5% guide this year. I think we've shown we can be disciplined there. What that content spend shows is that we see some really attractive opportunities to spend into our growth on the content side. It's everything from core film and TV series. On the TV side, in particular TV series, non-English TV series, we see continued opportunity to grow our spend into markets around the world where we're improving our product market fit. We got licensing opportunities in terms of content. We usually ramped up in licensing following the strikes. We ramped down a little bit. We talked about in our last earnings call, we were ramping back up again. We have some deals that we either expanded or new deals. We licensed Paramount content. Universal, we expanded from animated film to live action. Sony, we, you know, we're innovating even in licensing. We did the first ever global Pay-1 deal, which means on a global basis, we have the Pay-1 window for Sony films first time. At the same day on a single service around the world. We're expanding there. We're expanding into, you know, The live business for us is one where we're seeing some nice early success, and so we're growing out. We're not only growing our U.S. slate with more big fights like the Ronda Rousey fight coming out later this year, but also expanding outside the U.S. for, like, live events that originate outside the U.S. We've got the World Baseball Classic actually starting tomorrow in Japan. We had Taipei 101, which was a fun event earlier in this year, a little scary to watch at times. You know, we've got, I think, a fun kind of reunion coming up in March in Korea with BTS, so interesting things coming outside of the U.S. We're expanding content formats like podcasting. All in, you know, we think we're finding really interesting ways to grow and expand and strengthen our content offering. The bulk of that investment is in areas that we know really well in terms of core film and series with a proven ROI on our investment. In some of these newer areas, we kind of step into it in a very intentional and disciplined way and kind of learn into the growth. Overall, you should expect that we'll continue to grow our content investment as we grow our revenue in a healthy way, but do it in a way that gradually grows margins. We don't see any ceiling in the near future or even the medium future in terms of ceilings to the margin potential for the business. Before we get to some of the more recent M&A developments, I wanted to ask about the engagement trends. Oh, yeah. I think that's an area obviously of greater investor focus in terms of just trying to gauge the health of your standalone business. On one end, clearly you're the envy of the industry with 190 billion hours viewed each year. I think on the other end, there are increasingly some growing concerns about the pace of the growth and how that continues to evolve, especially with, you know, the potential rise of user-generated content and AI content. Can you just maybe talk a little bit about how you and the team assess engagement and the health of it, and more broadly, whether you think it's right for investors to think about that as a main KPI that you expect to grow over time? Well, it's nice to hear you say we are the envy of the industry. We appreciate it. We work hard for that. We don't take that for granted. It is a fiercely competitive industry. We talk about it as, like, We're always competing for those entertainment moments of truth. It's a tough battle every day. We're trying to win those moments, we really wanna be that kind of that first place that, you know, kind of starting point and destination for professionally produced content and the best of creators around the world. That is, you know, again, that's what we work hard to do. You mentioned our engagement report. Frankly, we probably should rename that report the view hour report because that's what it is view hours. It's not engagement holistically. View hours are important. They're just not the whole story. They're a part of the story. So yeah, we're, you know, we focus on the value we deliver to members in terms of overall engagement value. It's not just quantity of hours. You know, there's also we look at kind of, we do look at quantity, we look at frequency, we look at kind of the quality of those hours as well. It's a holistic view. You know, for example, just on the quality front, you know, our primary quality metric, I think Greg may have mentioned this on our last earnings call. We delivered, thanks to, you know, Bela and the creative team, we hit a record high for us in terms of quality per, you know, hour of entertainment that we delivered to our members last year in Q4. That was awesome. We see that as we improve the quality per hour, that actually directly improves the retention on our service. You also heard on our last call that we had a great quarter in terms of improving. We already have kind of world-class, kind of low churn, strong retention on our service. We delivered that again in Q4. We had strong acquisition retention, strong member growth. We're really kind of looking at all those things. Coming back to, we're getting increasingly sophisticated in terms of how we manage to kind of overall engagement. On the view hour piece, just to hit on it, The total view hours, they were up. We were up 2% in the back half of last year, up from 1%, you know, 1% increase in the first half. You know, that incremental 1% is 1.5 billion hours at our scale. There's a little bit of large numbers. I think part of what, you know, if we double-click on it, I think what folks are getting at a little bit is we're growing members, so the view hours per member household is coming down. And there's a lot that kind of plays into that as well. Overall, again, I just want to reinforce we have very healthy engagement characteristics. If you think about what goes into a view hour per household, there's a lot of things that can impact that. The plan mix impacts that, geography impacts that, you know, culture and viewing habits impact that. For example, again, we talked about in the last earnings call, Japan is an example is a country where typical household watches about a half to two-thirds the amount of viewing in a U.S. household. If you think about our kind of, you know, where, you know, a good chunk of our member growth may come in the years to come, good chunk come from countries that look more like Japan than the U.S. That doesn't mean that it's not healthy growing engagement. It's just kind of a different mix of engagement. Again, overall, you know, kind of takeaway for us is, we are and we plan to continue to grow viewing hours, but we're also increasingly focused on the total engagement story and more sophisticated in terms of the quality and overall value we deliver to our members. That's really what drives our business and how we manage the business. I think increasingly, to some extent, because of your success, the comparison now relative to competition is to YouTube as opposed to some of the legacy traditional media companies. Can you talk about why or why not you think that that might be an appropriate comparison? You talk about the quality of the engagement, in particular, how you could potentially be assessing that on a relative basis. Yeah, well, I guess, get back, you know, I guess, maybe industry is more focused on YouTube today. I can assure you we've been focused on YouTube for a long time. I think, I think it's about 10 years ago that YouTube first showed up in one of our earnings letters. We think very broadly about competition. We're in the entertainment business broadly. Entertainment has always been a intensely competitive business. It still is and remains and will be intensely competitive. YouTube is a key competitor. Increasingly, you know, as we talked about on the TV surface, which is the primary surface in which we entertain members around the world. You know, the constant for us is for us to compete, we have to get better faster than the competition in our positioning in the entertainment market. For us, we're positioned, we want to be the best destination for professionally produced content. We want to have the best creators of professionally produced content on the planet and deliver to them the biggest audiences possible. What we're doing in order to kind of continue to compete there is we want to continue to strengthen and expand our entertainment offering, which means working with an expanded set of those best creators. Why we work with creator, we produce content in more than 50 countries around the world. It's not just coming out of the conventional Hollywood creative system. That's a really important part of it. It's producing in more than 50 countries around the world. It's also embracing creators from social media platforms, creators from open content platforms. You know, Ms. Rachel was the, I think, the 9th most watched TV show we had on the service in the second half of 2025. My son is very grateful for the fact that we now have Mark Rober on the service. We have Alan Chikin Chow on the service coming soon. Like, you know, things that resonate with all these audiences, but it is still professionally produced creator content. It's just an expanded universe of that. We're doing that. You see, we're expanding the content formats that we're getting into, like video podcasts. We're expanding into areas like live, as I mentioned. It's about really kind of doing it in a way that for us goes after what we think are those most valuable moments of entertainment, because that's really what drives that flywheel and also drives our positioning in a very competitive entertainment ecosystem. Great. We wanted to turn to your decision to walk away from Warner Bros.. You declined to raise your bid for Warner. We're not still in it? You're out. You're officially out. Hard to get a laugh in this room. Okay. Within hours, I think you had four days. Within hours, you put an announcement out that you were walking away. Maybe walk us through what led you to this decision. Was it as simple as, you know, a specific price? I know Ted said, you know, the realization was someone was going to lose by $1, but maybe take us behind the scenes and what led you to walk away. The short answer is it was all about price. We can get into it, but we said all along, this was an opportunity that was nice to have at the right price, not a must-have at any price. You know, we love the Warner Bros. business, the assets that were available, that we were bidding, as you know, on the studio and streaming assets, not the entire company. You know, at the end, we had a strong belief, a stronger belief at the end than the beginning that we would have been great stewards of those assets and that business. We also had a stronger belief at the beginning than at the end that we had a clear path to regulatory. Much to a lot of the speculation that was out there, we had high confidence in all of those things. At the end of the day, we were going to stay very disciplined because this was, for us, an accelerator of our strategy. I mean, it kinda sounded maybe more exotic than it was because we're historically primarily builders and buyers. At the end of the day, this is a business that what we were looking at was primarily, an amazing, set of, a content library and IP, and studio production capabilities that would kind of allow us to bring more great content to our members. With an HBO Max service, also the opportunity to bring kind of with that complementary service, because there was roughly 80% overlap between HBO subscribers and our subscribers, so a way to kind of continue to expand and evolve our plans and pricing in a way that thought we could deliver more value, even more value at better pricing to members around the world. At the end of the day, it was sort of playing our playbook. We also thought in terms of the seat we were in, we had kind of a unique point of view in terms of how to value those assets, because it is the kind of stuff that we do every day. It was just doing kind of more of it and expanding on that. We went into it with a point of view on price. Once it was clear that this was going to be something where it didn't financially make sense to us anymore, it was time to kind of move on. That kind of gets back to kind of where we started. We feel great about our business. This was always from us, a position of offense, not defense. It was again, nice to have, would have loved it. Now we move forward. We move forward with a really healthy business with a long runway of growth. We move forward with $2.8 billion in our pocket that we didn't have a few weeks ago. You know, we kind of resume our, you know, the business that we were always mostly focused on, and even just things like our capital allocation policy unchanged, but it means now we kind of turn on our share repurchase program. Right. I guess now that we have to think about PSKY Warner, this is effectively what could be the formation of a larger scaled competitor in the landscape. How do you think about their willingness to license content and kind of your ability to source that? Well, it's hard for me to speak for them. At the end of the day, we've competed with Warner Bros. for a long time and also do business with Warner Bros., we compete with Paramount, do business with them. In general, the entertainment industry is one where it's more typical than atypical to both compete and have commercial relationships. We kind of hope and expect that that will be the case here too. You know, licensing ebbs and flows for us in the industry, so with particular suppliers. You know, we continue to have really strong access to content from suppliers around the world. We don't have any supplier, like, meaningful supplier concentration. There's no single supplier that's more than a small minority share of our viewing. Again, it ebbs and flows. We kinda, you know, look forward to competing with the new Paramount, but also doing business with them. You know, I mentioned in our Q4 call, we talked about we're doing more licensing of Paramount content. I think today maybe we renewed our Little House on the Prairie show with Paramount. For us, it's business as usual, but it's really kind of more in their court, and we'll see. Great. We wanted to ask if there's any updated change or to your philosophy around M&A. You obviously mentioned historically you're builders, not buyers. Was there anything in this experience that changed kind of your framework and approach? Was it worth it? Anything on the regulatory front you would bring up or how we should think about your approach to other studios if they were to ever come available? I know it sounds boring, but there's really no change. Again, it's like, you know, our approach to M&A is part of our approach to capital allocation, which is again, it's the same. First and foremost, we allocate our capital to invest strategically in our growth, that's primarily through organic investment and occasionally through M&A. Then we, you know, we ensure that we've got a strong balance sheet with ample liquidity. Lastly, we return excess cash to shareholders through share repurchase. M&A is part of that. Again, it's a tactic to accelerate our strategy. In the case of Warner Bros., it just happened to be an opportunity. It's rare to have an opportunity to have studio and IP assets at that scale that aren't attached to a lot of other legacy businesses that are not attractive to us. We've been really clear, we don't have an interest in buying legacy linear assets and managing through that transition. We'll continue to kind of stay focused on what are those opportunities, strategic accelerators. Again, no change to our focus. It just this maybe felt a little bit more exotic because of the size. The strategy and approach to capital allocation is unchanged. Shifting back to the core business, you disclosed recently a milestone for subscribers reaching over 325 million. I think that's basically 50% of the 700 million connected TV households that you talked about before as an opportunity. How should we think about the member opportunity from here? Is that still the right framework that we should be thinking about in terms of what you're trying to tackle? From a member opportunity, yes, generally. That's a growing universe of connected households. Our estimate now is that that connected household universe is more like $800 million, a little over $800 million versus the number you quoted. You know, we're still less than 50% penetrated of connected households around the world, and we're growing into that. We're growing into it in our more penetrated markets and our less penetrated markets. You saw that in our last earnings report. You know, we've got healthy growth in every region around the world. We continue to have a long runway to growth. Also importantly, you know, we're building out multiple levers of growth. One of the things we talked about, you know, a few years ago, and we slowed down, is we wanted to make sure we built to a healthy multiple levers of growth, including kind of launching the ad business. Now you kind of see that. We have growth through member growth. We have growth through kind of building member value and pricing into that subscription value. We have growth through our ad business, you know, taking that. You can kind of do the math on that this year, going from $1.5 billion of ads revenue last year to $3 billion this year. You look at our overall revenue guidance, which is, you know, ±$6 billion of incremental revenue growth year-over-year. That puts ads at about a 25% contributor of growth. We're delivering more balanced growth across all of those, and that's what we've really been building to, and that's playing out in the business. If you think about the content investments that's going into growing that member opportunity, two areas that you mentioned earlier about podcasting, and I think another one that more recently an experiment is vertical video. Yeah. Can you just maybe outline how we should think about those as interesting opportunities for you? More broadly, whether or not expanding more deeply into mobile consumption is something that you're really focused on. Yeah, sure. Starting, I guess, with podcasts, I think we think of that as, like, we're always looking for those as I mentioned before, those most valuable areas to expand and strengthen our entertainment offering. Video podcast is one of those examples to us, where we think there's an opportunity. Not dissimilar to how we expanded over time. There was a day when all we were scripted TV and film, English language, and then we went into unscripted, and then we went to non-English TV and film. We went to animation and anime and then live. This is another potential content format or category for us. We're learning into it in areas that we know resonate with our members, so things like pop culture and lifestyle and true crime. It also, you know, important thing about video podcasts for us is, you know, again, we're trying to win more of these moments of truth, and with video podcasts, there's a because it's frankly a little easier to get in and out of them. It plays better on mobile devices. It's sometimes you can kinda listen and not be watching all the time, so it has a little bit of the back and forth there. We're seeing, and it's still early days, it's still very early signal, but Our video podcasts are over-indexing on time of the day, like morning and afternoon when, relative to our core kind of subscription TV, film on-demand offering. Similarly, it's over-indexing on the mobile device, so that's pretty cool. We'll kind of see where that plays out, and we'll learn into it. Then on vertical video, yeah, you're right. We've been testing into it for several months now. You can see in our mobile feed, there's vertical video clips, mostly film and TV series and film clips today. We'll expand that to more content formats like video podcasting. I think, more importantly, we're gonna continue to evolve and improve our mobile experience broadly. I think we touched on that in our last earnings letter. In the back half of this year, we'll roll out our new mobile user interface, which, similar to what we did with our TV user interface last year where we rolled that out broadly and that kinda created a new platform for us that, you know, mostly was visually, more compelling, I think. And now we're rolling out more adaptive and personalized capabilities and all that plumbing underneath it. That's the same thing with mobile, where we'll kind of roll it out this year, and then that's now a platform that we can evolve and optimize for, you know, years and years to come, so. We'd be remiss if we didn't ask about AI at our TMT conference. It's been a big topic over the last few days. Can you just talk about the puts and takes for your business? You've talked historically about the benefits that it might have to production and the production process. There's obviously a lot more existential angst as well about lowering barriers to entry and creating more of an opportunity for others as well, to get into space. Can you just talk about the relative positioning and how you're thinking about it currently? Yeah, sure. I mean, we look at it as more puts than takes, I guess, if you're puts and takes. you know, it's a really exciting time for us. I mean, we look at, you know, AI and Gen AI and, you know, it's going to create, you know, a lot of things better: better content, better product experience for the industry. For us, you know, it's exciting because we're one of, we believe one of the few companies on the planet that has is really good at entertainment and technology. We've got 25 years of history of using AI and machine learning tools and now applying Gen AI. Our DNA is technology-rich. We have deep data sets, and we have, you know, products and business operations at global scale. When you put those things together, we see, like, really exciting opportunities in terms of the application of GenAI to improve every aspect of our business. The key for us is, like, we're also pro-human. You know, we fundamentally kinda believe that creativity and the best of creativity is going to be done by people, and there's a pretty small subset of amazing creators on the planet. For us, we're focused on, like, from the content side, how do we have GenAI kind of infused tools that help bring out the best of storytelling for those creators? It's an expanding set of creators, but still relatively few on the planet that we think make the best of creative expression, we wanna get the tools in their hands. Again, it's creators from more than 50 countries around the world. It's from social platforms. It's from open content platforms. We're focused on those, you know, infusing Gen AI tools into the creative process for people to make the best storytelling. We're also focused on Gen AI and when we think about, like, our product roadmap and our product experience. Our CTO has talked about for our product roadmap, we're focused on more personalization, more interactivity, greater immersiveness. All those things play to an expanded entertainment offering across core film and TV, live, games, et cetera. You think about that product roadmap and infusing GenAI into it, we think using those models, it's an accelerator and enabler of that roadmap. Great for us because, you know, product done well and a product experience done well, matching the right content to the right individual at the right time, it's a force multiplier on our content investments. Those things are really powerful. On the advertising side, I mean, you all see it as well in terms of GenAI. We're, you know, still early days in our advertising rollout. This is our first full year of our ad tech stack. Infusing Gen AI in that tech stack and those capabilities, we see it in terms of, in terms of just the advertising, the creative process itself, in terms of the creative formats that can be Gen AI created. It's improving contextual targeting and placement. It's, again, it's just going to be an enabler and accelerator of the effectiveness of advertising for our clients and for ourselves. Across the board, we're excited about the opportunity, but an opportunity for us is one where it's all about enabling the best of those creators and delivering the best of and the largest audiences in a professionally produced content ecosystem. All right. We wanted to turn to pricing. You were pretty clear on the earnings call that it was business as usual, even as the Warner deal was pending. How would you say recent price increases have fared relative to your expectations? Do you have any view in kind of the change in your pricing power? Should we expect anything different now that Warner is kind of in the rear view? I wouldn't expect anything different before or after. We said we were gonna kind of stay focused and continue to run the business as we always have. You know, we continue to deliver more entertainment value to our members around the world. We talked about, you know. I talked at the start of this, that when we've gotten more sophisticated about how we measure entertainment value in terms of, like, engagement quality, as an example, and we had record engagement quality scores at the end of last year that we continue to build on, so. We see that kind of, the proof of that in terms of how pricing and pricing changes have rolled out. We've had really high customer satisfaction, really high brand health, and then pricing has, you know, gone as well, you know, or better than expected. Essentially, there's kinda no change there. We'll continue to focus on what we do, which is deliver more and more value to members around the world and then occasionally price into that value. Maybe just spend a second on the quality of engagement. How do you guys actually measure that? Like, obviously, you know, Taipei 101, to your point, very special, really engaged. Like, how should we think about that from the outside? You know, I, you know, I'm probably not gonna get into all that. You know, it's a very competitive business and we've got multiple metrics. One of the most basic ways that I think Bela and Ted have been recommending is one of the things we look at is do people press play and stay? That's a very basic way to think about it. Do they like what they watched? I'm not gonna kinda get into the. We wanted to talk more about advertising. Obviously, you mentioned roughly double revenue this year to over $3 billion. I think fill rate has been one of the kinda question marks. Is it fair to say there's opportunity to continue to improve the fill rate and stay at very attractive levels in terms of ad load? Yes. You know, we're continuing to grow our ad business in a healthy way, expect to rough doubling again this year. You know, it's a result of the fact that advertisers are pleased with things we've delivered on. We're delivering on an increasing scale. We're, you know, we've gone beyond kind of critical scale in all of our ads markets. We deliver a highly attentive and engaged audience. We kind of do that with a really strong slate of titles. We also now have a tech stack that brings kind of capabilities to market faster. With all of that, then with the tech stack in particular kinda layered into that, we're able to deliver more ad products, and we're also able to kind of, stitch together more, more demand, more demand from things like, you know, external DSPs. It allows us to do more programmatic integrations, more data integrations on the programmatic side. All of that stuff allows us to bring more demand into the system. We increased fill rate last year. We'll continue to increase fill rate this year as we bring all this online. I should also say we don't manage to fill rate. We manage to overall ad revenue. We're trying to manage to that while also maintaining premium CPM marketplace, and that's what we're doing. Fill is part of the path to get there. Great. We wanted to hit on sports. Can you update us on your financial framework for assessing sports rights? You mentioned before you've licensed some sports rights like NFL games, Women's World Cup, MLB, but you've also largely been disinterested in kinda big regular season rights. How should we assess, you know, how you're thinking about the approach to sports? We think about sports as we love sports, it has to work for us as well, for our members and for our business. For us, sports is part of our overall live event strategy. As part of live, sports is a subset of that. We don't love the business of being in the business of big seasons of big sports. We think that's a pretty tough business to be in, we don't think we need it to deliver that improving member value. We like it as part of our event strategy and see that with, like, the NFL on Christmas Day on Netflix is kind of eventizing a couple NFL games a year. See it with things like the Canelo-Crawford fight. You see it with, you know, WBC in Japan starting tomorrow, where it's, you know, that's big in Japan, big in some other countries around the world as well. We're excited for those opportunities and continuing to build on those opportunities and find a way where sports can be a nice complement to our business. Seems with the big sports events. You know, we're gonna stay disciplined in terms of how we invest into it. Looks like we're running out of time, but maybe just the last one from me. Anything on the content slate that you'd be highlighting in the second half? When is KPop Demon Hunters 2 coming out? Oh, man. I believe they're... I don't know when that's coming out. I can't wait. I loved it, I gotta say. I mean, anyway, I won't... What's coming out, you know, I am, I'm a big fan of One Piece. I don't know if you guys watch One Piece. I, you know, I think it's feel good, and I think that's, is that next week? It's coming out soon. It's actually. That'll be fun. For some of you guys, Peaky Blinders, the movie, is coming out soon, I think you'll enjoy that. For others, Bridgerton, now all episodes have dropped if you wanna catch up on that. There's a lot of I mean, the thing with us is, like, and I don't do this as well as Ted. You know, we could do five minutes of running through the steady drum beat of titles across film and TV and different content formats around the world, but that's what makes, you know, I think Netflix great and exciting. It's something fun and amazing for everyone, and it's not like one and done. We keep at it every week, every month, so. Thank you so much for your time. All righty. Thanks, guys.

Speaker 1: Thank you everyone for joining us. My name is Sean Diffley. I'm joined by Thomas Yeh from the Morgan Stanley Media and Entertainment Research team. We're extremely excited to have Spence Neumann from Netflix here. I'm gonna give a quick disclosure. For important disclosures, please see the Morgan Stanley Research Disclosure website. If you have any questions, reach out to your Morgan Stanley sales rep. A bit of a different conversation than we might have been having a week ago, but we're gonna get into all that. To kick us off, Spence, maybe you could level set for us today the health of the business as you see it over the next few years and your key priorities at Netflix for 2026. Thank you everyone for joining us. thank you everyone for joining us My name is Sean Diffley. my name is sean diffley I'm joined by Thomas Yeh from the Morgan Stanley Media and Entertainment Research team. i'm joined by thomas yeh from the morgan stanley media and entertainment research team We're extremely excited to have Spence Neumann from Netflix here. we're extremely excited to have spence neumann from netflix here I'm gonna give a quick disclosure. i'm gonna give a quick disclosure For important disclosures, please see the Morgan Stanley Research Disclosure website. for important disclosures please see the morgan stanley research disclosure website If you have any questions, reach out to your Morgan Stanley sales rep. if you have any questions reach out to your morgan stanley sales rep A bit of a different conversation than we might have been having a week ago, but we're gonna get into all that. a bit of a different conversation than we might have been having a week ago but we're gonna get into all that To kick us off, Spence, maybe you could level set for us today the health of the business as you see it over the next few years and your key priorities at Netflix for 2026. to kick us off spence maybe you could level set for us today the health of the business as you see it over the next few years and your key priorities at netflix for 2026

Speaker 2: All right. Well, thanks for having me. Good to see everybody. Well, look, yeah, I guess it's a bit of a different conversation, but also more the same for us. I mean, we feel great about our business, so and the position we're in. We feel great about our kind of, our growth opportunity ahead, our organic growth opportunity on a short, medium, and long term. You see that a bit in our 2026 guide that in our Q4 call. We're really healthy outlook for the business. We guided to, and a kind of 12%-14% revenue growth, operating margins increasing to 31.5%, rough doubling of our ads business to about $3 billion in 2026, about $11 billion of free cash flow. All right. all right Well, thanks for having me. well thanks for having me Good to see everybody. good to see everybody Well, look, yeah, I guess it's a bit of a different conversation, but also more the same for us. well look yeah i guess it's a bit of a different conversation but also more the same for us I mean, we feel great about our business, so and the position we're in. i mean we feel great about our business so and the position we're in We feel great about our kind of, our growth opportunity ahead, our organic growth opportunity on a short, medium, and long term. we feel great about our kind of our growth opportunity ahead our organic growth opportunity on a short medium and long term You see that a bit in our 2026 guide that in our Q4 call. you see that a bit in our 2026 guide that in our q4 call We're really healthy outlook for the business. we're really healthy outlook for the business We guided to, and a kind of 12%-14% revenue growth, operating margins increasing to 31.5%, rough doubling of our ads business to about $3 billion in 2026, about $11 billion of free cash flow. we guided to and a kind of 12%-14% revenue growth operating margins increasing to 31.5% rough doubling of our ads business to about $3 billion in 2026 about $11 billion of free cash flow Really healthy outlook for us. You know, our focus remains very similar. Our core focus is kind of drive the strength in our kind of and continue to strengthen and improve our core business in terms of improving our content or core content offering around film and series, improving our product experience, continuing to grow that ads business, continuing to expand our entertainment offering and drive, you know, strong, healthy revenue and profit growth. We also want to expand into new entertainment categories, building out live, building out things like podcasts. Continuing to kind of build that out as well so that we're extending and growing. Overall, that kind of focus remains the same. Really healthy outlook for us. really healthy outlook for us You know, our focus remains very similar. you know our focus remains very similar Our core focus is kind of drive the strength in our kind of and continue to strengthen and improve our core business in terms of improving our content or core content offering around film and series, improving our product experience, continuing to grow that ads business, continuing to expand our entertainment offering and drive, you know, strong, healthy revenue and profit growth. our core focus is kind of drive the strength in our kind of and continue to strengthen and improve our core business in terms of improving our content or core content offering around film and series improving our product experience continuing to grow that ads business continuing to expand our entertainment offering and drive you know strong healthy revenue and profit growth We also want to expand into new entertainment categories, building out live, building out things like podcasts. we also want to expand into new entertainment categories building out live building out things like podcasts Continuing to kind of build that out as well so that we're extending and growing. continuing to kind of build that out as well so that we're extending and growing Overall, that kind of focus remains the same. overall that kind of focus remains the same You know, it's one of those things where I know it sounds boring, but even though we're pretty big, we're pretty small. Every way we look at our addressable market, we're still less than 10% view share in every country in which we operate. We're about 7% of addressable revenue market. And, we're, you know. We're, sorry, someone's buzzing me and it's distracting me on my phone. We're small in kind of every way that we kinda measure the business in terms of even households, we're less than 50% penetrated. We've got a strong runway for growth in the core as we continue to focus on that, and that really is our focus. You know, it's one of those things where I know it sounds boring, but even though we're pretty big, we're pretty small. you know it's one of those things where i know it sounds boring but even though we're pretty big we're pretty small Every way we look at our addressable market, we're still less than 10% view share in every country in which we operate. every way we look at our addressable market we're still less than 10% view share in every country in which we operate We're about 7% of addressable revenue market. we're about 7% of addressable revenue market And, we're, you know. and we're you know We're, sorry, someone's buzzing me and it's distracting me on my phone. we're sorry someone's buzzing me and it's distracting me on my phone We're small in kind of every way that we kinda measure the business in terms of even households, we're less than 50% penetrated. we're small in kind of every way that we kinda measure the business in terms of even households we're less than 50% penetrated We've got a strong runway for growth in the core as we continue to focus on that, and that really is our focus. we've got a strong runway for growth in the core as we continue to focus on that and that really is our focus Again, I wanna kinda reinforce it's a runway of organic growth that we feel great about. Again, I wanna kinda reinforce it's a runway of organic growth that we feel great about. again i wanna kinda reinforce it's a runway of organic growth that we feel great about

Speaker 1: Great. You referenced the double-digit revenue growth for this year. I would say one thing the market was a little surprised by was the level of cash content investment. Great. great You referenced the double-digit revenue growth for this year. you referenced the double-digit revenue growth for this year I would say one thing the market was a little surprised by was the level of cash content investment. i would say one thing the market was a little surprised by was the level of cash content investment

Speaker 2: Yeah. Yeah. yeah

Speaker 1: About $20 billion, that's 10% year-on-year growth. By implication, your margin outlook was maybe a bit lower than what we've seen in the past. You know, maybe take a minute to talk about why you feel this is the right level of investment for the business today. About $20 billion, that's 10% year-on-year growth. about $20 billion that's 10% year-on-year growth By implication, your margin outlook was maybe a bit lower than what we've seen in the past. by implication your margin outlook was maybe a bit lower than what we've seen in the past You know, maybe take a minute to talk about why you feel this is the right level of investment for the business today. you know maybe take a minute to talk about why you feel this is the right level of investment for the business today

Speaker 2: Yeah, sure. You know, as you say, we're we guided to about $20 billion of cash content spend, up about 10% over last year. It's really no change in our approach. You know, we've always talked about is that we want to kinda drive healthy double-digit revenue growth for as long as possible. We wanted to accelerate that revenue growth. As we did, as we have shown we are doing, we wanna kinda spend in a healthy way into that growth, spend at a lower rate of growth than our revenue growth. We've been doing that for a long while now. As you saw from our healthy revenue growth outlook, it enabled us to kinda grow our content spend growth. Yeah, sure. yeah sure You know, as you say, we're we guided to about $20 billion of cash content spend, up about 10% over last year. you know as you say we're we guided to about $20 billion of cash content spend up about 10% over last year It's really no change in our approach. it's really no change in our approach You know, we've always talked about is that we want to kinda drive healthy double-digit revenue growth for as long as possible. you know we've always talked about is that we want to kinda drive healthy double-digit revenue growth for as long as possible We wanted to accelerate that revenue growth. we wanted to accelerate that revenue growth As we did, as we have shown we are doing, we wanna kinda spend in a healthy way into that growth, spend at a lower rate of growth than our revenue growth. as we did as we have shown we are doing we wanna kinda spend in a healthy way into that growth spend at a lower rate of growth than our revenue growth We've been doing that for a long while now. we've been doing that for a long while now As you saw from our healthy revenue growth outlook, it enabled us to kinda grow our content spend growth. as you saw from our healthy revenue growth outlook it enabled us to kinda grow our content spend growth We grew about 7% year-over-year in 2025. We're guiding to about 10% this year. The ratio of cash spend to content amort is essentially unchanged. It's a roughly 1.1 ratio of cash spend to content amort. You know, we set margin targets. Our approach is to gradually grow our margins by growing our spends a bit below the pace of our revenue growth. We've been doing that pretty, you know. We have a pretty demonstrated history of doing that, setting those targets and growing gradually. The rate of margin expansion, you know, varies year-to-year depending on opportunity. We've, you know, we've averaged over the last five years about 2 percentage points, a little over 2 percentage points of margin growth per year, and this guide is up 2%. We grew about 7% year-over-year in 2025. we grew about 7% year-over-year in 2025 We're guiding to about 10% this year. we're guiding to about 10% this year The ratio of cash spend to content amort is essentially unchanged. the ratio of cash spend to content amort is essentially unchanged It's a roughly 1.1 ratio of cash spend to content amort. it's a roughly 1.1 ratio of cash spend to content amort You know, we set margin targets. you know we set margin targets Our approach is to gradually grow our margins by growing our spends a bit below the pace of our revenue growth. our approach is to gradually grow our margins by growing our spends a bit below the pace of our revenue growth We've been doing that pretty, you know. we've been doing that pretty you know We have a pretty demonstrated history of doing that, setting those targets and growing gradually. we have a pretty demonstrated history of doing that setting those targets and growing gradually The rate of margin expansion, you know, varies year-to-year depending on opportunity. the rate of margin expansion you know varies year-to-year depending on opportunity We've, you know, we've averaged over the last five years about 2 percentage points, a little over 2 percentage points of margin growth per year, and this guide is up 2%. we've you know we've averaged over the last five years about 2 percentage points a little over 2 percentage points of margin growth per year and this guide is up 2% you know, it's quite consistent. Again, if you go back, you know, I started in January of 2019 at Netflix. In 2018, we had 10% operating margin. We've grown from that to a 31.5% guide this year. I think we've shown we can be disciplined there. What that content spend shows is that we see some really attractive opportunities to spend into our growth on the content side. It's everything from core film and TV series. On the TV side, in particular TV series, non-English TV series, we see continued opportunity to grow our spend into markets around the world where we're improving our product market fit. We got licensing opportunities in terms of content. We usually ramped up in licensing following the strikes. you know, it's quite consistent. you know it's quite consistent Again, if you go back, you know, I started in January of 2019 at Netflix. again if you go back you know i started in january of 2019 at netflix In 2018, we had 10% operating margin. in 2018 we had 10% operating margin We've grown from that to a 31.5% guide this year. we've grown from that to a 31.5% guide this year I think we've shown we can be disciplined there. i think we've shown we can be disciplined there What that content spend shows is that we see some really attractive opportunities to spend into our growth on the content side. what that content spend shows is that we see some really attractive opportunities to spend into our growth on the content side It's everything from core film and TV series. it's everything from core film and tv series On the TV side, in particular TV series, non-English TV series, we see continued opportunity to grow our spend into markets around the world where we're improving our product market fit. on the tv side in particular tv series non-english tv series we see continued opportunity to grow our spend into markets around the world where we're improving our product market fit We got licensing opportunities in terms of content. we got licensing opportunities in terms of content We usually ramped up in licensing following the strikes. we usually ramped up in licensing following the strikes We ramped down a little bit. We talked about in our last earnings call, we were ramping back up again. We have some deals that we either expanded or new deals. We licensed Paramount content. Universal, we expanded from animated film to live action. Sony, we, you know, we're innovating even in licensing. We did the first ever global Pay-1 deal, which means on a global basis, we have the Pay-1 window for Sony films first time. At the same day on a single service around the world. We're expanding there. We're expanding into, you know, The live business for us is one where we're seeing some nice early success, and so we're growing out. We ramped down a little bit. we ramped down a little bit We talked about in our last earnings call, we were ramping back up again. we talked about in our last earnings call we were ramping back up again We have some deals that we either expanded or new deals. we have some deals that we either expanded or new deals We licensed Paramount content. we licensed paramount content Universal, we expanded from animated film to live action. universal we expanded from animated film to live action Sony, we, you know, we're innovating even in licensing. sony we you know we're innovating even in licensing We did the first ever global Pay-1 deal, which means on a global basis, we have the Pay-1 window for Sony films first time. At the same day on a single service around the world. we did the first ever global pay-1 deal which means on a global basis we have the pay-1 window for sony films first time. at the same day on a single service around the world We're expanding there. we're expanding there We're expanding into, you know, The live business for us is one where we're seeing some nice early success, and so we're growing out. we're expanding into you know the live business for us is one where we're seeing some nice early success and so we're growing out We're not only growing our U.S. slate with more big fights like the Ronda Rousey fight coming out later this year, but also expanding outside the U.S. for, like, live events that originate outside the U.S. We've got the World Baseball Classic actually starting tomorrow in Japan. We had Taipei 101, which was a fun event earlier in this year, a little scary to watch at times. You know, we've got, I think, a fun kind of reunion coming up in March in Korea with BTS, so interesting things coming outside of the U.S. We're expanding content formats like podcasting. All in, you know, we think we're finding really interesting ways to grow and expand and strengthen our content offering. We're not only growing our U.S. slate with more big fights like the Ronda Rousey fight coming out later this year, but also expanding outside the U.S. for, like, live events that originate outside the U.S. we're not only growing our u.s slate with more big fights like the ronda rousey fight coming out later this year but also expanding outside the u.s for like live events that originate outside the u.s We've got the World Baseball Classic actually starting tomorrow in Japan. we've got the world baseball classic actually starting tomorrow in japan We had Taipei 101, which was a fun event earlier in this year, a little scary to watch at times. we had taipei 101 which was a fun event earlier in this year a little scary to watch at times You know, we've got, I think, a fun kind of reunion coming up in March in Korea with BTS, so interesting things coming outside of the U.S. you know we've got i think a fun kind of reunion coming up in march in korea with bts so interesting things coming outside of the u.s We're expanding content formats like podcasting. we're expanding content formats like podcasting All in, you know, we think we're finding really interesting ways to grow and expand and strengthen our content offering. all in you know we think we're finding really interesting ways to grow and expand and strengthen our content offering The bulk of that investment is in areas that we know really well in terms of core film and series with a proven ROI on our investment. In some of these newer areas, we kind of step into it in a very intentional and disciplined way and kind of learn into the growth. Overall, you should expect that we'll continue to grow our content investment as we grow our revenue in a healthy way, but do it in a way that gradually grows margins. We don't see any ceiling in the near future or even the medium future in terms of ceilings to the margin potential for the business. The bulk of that investment is in areas that we know really well in terms of core film and series with a proven ROI on our investment. the bulk of that investment is in areas that we know really well in terms of core film and series with a proven roi on our investment In some of these newer areas, we kind of step into it in a very intentional and disciplined way and kind of learn into the growth. in some of these newer areas we kind of step into it in a very intentional and disciplined way and kind of learn into the growth Overall, you should expect that we'll continue to grow our content investment as we grow our revenue in a healthy way, but do it in a way that gradually grows margins. overall you should expect that we'll continue to grow our content investment as we grow our revenue in a healthy way but do it in a way that gradually grows margins We don't see any ceiling in the near future or even the medium future in terms of ceilings to the margin potential for the business. we don't see any ceiling in the near future or even the medium future in terms of ceilings to the margin potential for the business

Speaker 3: Before we get to some of the more recent M&A developments, I wanted to ask about the engagement trends. Before we get to some of the more recent M&A developments, I wanted to ask about the engagement trends. before we get to some of the more recent m&a developments i wanted to ask about the engagement trends

Speaker 2: Oh, yeah. Oh, yeah. oh yeah

Speaker 3: I think that's an area obviously of greater investor focus in terms of just trying to gauge the health of your standalone business. On one end, clearly you're the envy of the industry with 190 billion hours viewed each year. I think on the other end, there are increasingly some growing concerns about the pace of the growth and how that continues to evolve, especially with, you know, the potential rise of user-generated content and AI content. Can you just maybe talk a little bit about how you and the team assess engagement and the health of it, and more broadly, whether you think it's right for investors to think about that as a main KPI that you expect to grow over time? I think that's an area obviously of greater investor focus in terms of just trying to gauge the health of your standalone business. i think that's an area obviously of greater investor focus in terms of just trying to gauge the health of your standalone business On one end, clearly you're the envy of the industry with 190 billion hours viewed each year. on one end clearly you're the envy of the industry with 190 billion hours viewed each year I think on the other end, there are increasingly some growing concerns about the pace of the growth and how that continues to evolve, especially with, you know, the potential rise of user-generated content and AI content. i think on the other end there are increasingly some growing concerns about the pace of the growth and how that continues to evolve especially with you know the potential rise of user-generated content and ai content Can you just maybe talk a little bit about how you and the team assess engagement and the health of it, and more broadly, whether you think it's right for investors to think about that as a main KPI that you expect to grow over time? can you just maybe talk a little bit about how you and the team assess engagement and the health of it and more broadly whether you think it's right for investors to think about that as a main kpi that you expect to grow over time

Speaker 2: Well, it's nice to hear you say we are the envy of the industry. We appreciate it. We work hard for that. We don't take that for granted. It is a fiercely competitive industry. We talk about it as, like, We're always competing for those entertainment moments of truth. It's a tough battle every day. We're trying to win those moments, we really wanna be that kind of that first place that, you know, kind of starting point and destination for professionally produced content and the best of creators around the world. That is, you know, again, that's what we work hard to do. Well, it's nice to hear you say we are the envy of the industry. well it's nice to hear you say we are the envy of the industry We appreciate it. we appreciate it We work hard for that. we work hard for that We don't take that for granted. we don't take that for granted It is a fiercely competitive industry. it is a fiercely competitive industry We talk about it as, like, We're always competing for those entertainment moments of truth. we talk about it as like we're always competing for those entertainment moments of truth It's a tough battle every day. it's a tough battle every day We're trying to win those moments, we really wanna be that kind of that first place that, you know, kind of starting point and destination for professionally produced content and the best of creators around the world. we're trying to win those moments we really wanna be that kind of that first place that you know kind of starting point and destination for professionally produced content and the best of creators around the world That is, you know, again, that's what we work hard to do. that is you know again that's what we work hard to do You mentioned our engagement report. Frankly, we probably should rename that report the view hour report because that's what it is view hours. It's not engagement holistically. View hours are important. They're just not the whole story. They're a part of the story. So yeah, we're, you know, we focus on the value we deliver to members in terms of overall engagement value. It's not just quantity of hours. You know, there's also we look at kind of, we do look at quantity, we look at frequency, we look at kind of the quality of those hours as well. It's a holistic view. You know, for example, just on the quality front, you know, our primary quality metric, I think Greg may have mentioned this on our last earnings call. You mentioned our engagement report. you mentioned our engagement report Frankly, we probably should rename that report the view hour report because that's what it is view hours. frankly we probably should rename that report the view hour report because that's what it is view hours It's not engagement holistically. it's not engagement holistically View hours are important. view hours are important They're just not the whole story. they're just not the whole story They're a part of the story. they're a part of the story So yeah, we're, you know, we focus on the value we deliver to members in terms of overall engagement value. so yeah we're you know we focus on the value we deliver to members in terms of overall engagement value It's not just quantity of hours. it's not just quantity of hours You know, there's also we look at kind of, we do look at quantity, we look at frequency, we look at kind of the quality of those hours as well. you know there's also we look at kind of we do look at quantity we look at frequency we look at kind of the quality of those hours as well It's a holistic view. it's a holistic view You know, for example, just on the quality front, you know, our primary quality metric, I think Greg may have mentioned this on our last earnings call. you know for example just on the quality front you know our primary quality metric i think greg may have mentioned this on our last earnings call We delivered, thanks to, you know, Bela and the creative team, we hit a record high for us in terms of quality per, you know, hour of entertainment that we delivered to our members last year in Q4. That was awesome. We see that as we improve the quality per hour, that actually directly improves the retention on our service. You also heard on our last call that we had a great quarter in terms of improving. We already have kind of world-class, kind of low churn, strong retention on our service. We delivered that again in Q4. We had strong acquisition retention, strong member growth. We're really kind of looking at all those things. Coming back to, we're getting increasingly sophisticated in terms of how we manage to kind of overall engagement. We delivered, thanks to, you know, Bela and the creative team, we hit a record high for us in terms of quality per, you know, hour of entertainment that we delivered to our members last year in Q4. we delivered thanks to you know bela and the creative team we hit a record high for us in terms of quality per you know hour of entertainment that we delivered to our members last year in q4 That was awesome. that was awesome We see that as we improve the quality per hour, that actually directly improves the retention on our service. we see that as we improve the quality per hour that actually directly improves the retention on our service You also heard on our last call that we had a great quarter in terms of improving. you also heard on our last call that we had a great quarter in terms of improving We already have kind of world-class, kind of low churn, strong retention on our service. we already have kind of world-class kind of low churn strong retention on our service We delivered that again in Q4. we delivered that again in q4 We had strong acquisition retention, strong member growth. we had strong acquisition retention strong member growth We're really kind of looking at all those things. we're really kind of looking at all those things Coming back to, we're getting increasingly sophisticated in terms of how we manage to kind of overall engagement. coming back to we're getting increasingly sophisticated in terms of how we manage to kind of overall engagement On the view hour piece, just to hit on it, The total view hours, they were up. We were up 2% in the back half of last year, up from 1%, you know, 1% increase in the first half. You know, that incremental 1% is 1.5 billion hours at our scale. There's a little bit of large numbers. I think part of what, you know, if we double-click on it, I think what folks are getting at a little bit is we're growing members, so the view hours per member household is coming down. And there's a lot that kind of plays into that as well. Overall, again, I just want to reinforce we have very healthy engagement characteristics. On the view hour piece, just to hit on it, The total view hours, they were up. on the view hour piece just to hit on it the total view hours they were up We were up 2% in the back half of last year, up from 1%, you know, 1% increase in the first half. we were up 2% in the back half of last year up from 1% you know 1% increase in the first half You know, that incremental 1% is 1.5 billion hours at our scale. you know that incremental 1% is 1.5 billion hours at our scale There's a little bit of large numbers. there's a little bit of large numbers I think part of what, you know, if we double-click on it, I think what folks are getting at a little bit is we're growing members, so the view hours per member household is coming down. i think part of what you know if we double-click on it i think what folks are getting at a little bit is we're growing members so the view hours per member household is coming down And there's a lot that kind of plays into that as well. and there's a lot that kind of plays into that as well Overall, again, I just want to reinforce we have very healthy engagement characteristics. overall again i just want to reinforce we have very healthy engagement characteristics If you think about what goes into a view hour per household, there's a lot of things that can impact that. The plan mix impacts that, geography impacts that, you know, culture and viewing habits impact that. For example, again, we talked about in the last earnings call, Japan is an example is a country where typical household watches about a half to two-thirds the amount of viewing in a U.S. household. If you think about our kind of, you know, where, you know, a good chunk of our member growth may come in the years to come, good chunk come from countries that look more like Japan than the U.S. That doesn't mean that it's not healthy growing engagement. It's just kind of a different mix of engagement. If you think about what goes into a view hour per household, there's a lot of things that can impact that. if you think about what goes into a view hour per household there's a lot of things that can impact that The plan mix impacts that, geography impacts that, you know, culture and viewing habits impact that. the plan mix impacts that geography impacts that you know culture and viewing habits impact that For example, again, we talked about in the last earnings call, Japan is an example is a country where typical household watches about a half to two-thirds the amount of viewing in a U.S. household. for example again we talked about in the last earnings call japan is an example is a country where typical household watches about a half to two-thirds the amount of viewing in a u.s household If you think about our kind of, you know, where, you know, a good chunk of our member growth may come in the years to come, good chunk come from countries that look more like Japan than the U.S. if you think about our kind of you know where you know a good chunk of our member growth may come in the years to come good chunk come from countries that look more like japan than the u.s That doesn't mean that it's not healthy growing engagement. that doesn't mean that it's not healthy growing engagement It's just kind of a different mix of engagement. it's just kind of a different mix of engagement Again, overall, you know, kind of takeaway for us is, we are and we plan to continue to grow viewing hours, but we're also increasingly focused on the total engagement story and more sophisticated in terms of the quality and overall value we deliver to our members. That's really what drives our business and how we manage the business. Again, overall, you know, kind of takeaway for us is, we are and we plan to continue to grow viewing hours, but we're also increasingly focused on the total engagement story and more sophisticated in terms of the quality and overall value we deliver to our members. again overall you know kind of takeaway for us is we are and we plan to continue to grow viewing hours but we're also increasingly focused on the total engagement story and more sophisticated in terms of the quality and overall value we deliver to our members That's really what drives our business and how we manage the business. that's really what drives our business and how we manage the business

Speaker 3: I think increasingly, to some extent, because of your success, the comparison now relative to competition is to YouTube as opposed to some of the legacy traditional media companies. Can you talk about why or why not you think that that might be an appropriate comparison? You talk about the quality of the engagement, in particular, how you could potentially be assessing that on a relative basis. I think increasingly, to some extent, because of your success, the comparison now relative to competition is to YouTube as opposed to some of the legacy traditional media companies. i think increasingly to some extent because of your success the comparison now relative to competition is to youtube as opposed to some of the legacy traditional media companies Can you talk about why or why not you think that that might be an appropriate comparison? can you talk about why or why not you think that that might be an appropriate comparison You talk about the quality of the engagement, in particular, how you could potentially be assessing that on a relative basis. you talk about the quality of the engagement in particular how you could potentially be assessing that on a relative basis

Speaker 2: Yeah, well, I guess, get back, you know, I guess, maybe industry is more focused on YouTube today. I can assure you we've been focused on YouTube for a long time. I think, I think it's about 10 years ago that YouTube first showed up in one of our earnings letters. We think very broadly about competition. We're in the entertainment business broadly. Entertainment has always been a intensely competitive business. It still is and remains and will be intensely competitive. YouTube is a key competitor. Increasingly, you know, as we talked about on the TV surface, which is the primary surface in which we entertain members around the world. Yeah, well, I guess, get back, you know, I guess, maybe industry is more focused on YouTube today. yeah well i guess get back you know i guess maybe industry is more focused on youtube today I can assure you we've been focused on YouTube for a long time. i can assure you we've been focused on youtube for a long time I think, I think it's about 10 years ago that YouTube first showed up in one of our earnings letters. i think i think it's about 10 years ago that youtube first showed up in one of our earnings letters We think very broadly about competition. we think very broadly about competition We're in the entertainment business broadly. we're in the entertainment business broadly Entertainment has always been a intensely competitive business. entertainment has always been a intensely competitive business It still is and remains and will be intensely competitive. it still is and remains and will be intensely competitive YouTube is a key competitor. youtube is a key competitor Increasingly, you know, as we talked about on the TV surface, which is the primary surface in which we entertain members around the world. increasingly you know as we talked about on the tv surface which is the primary surface in which we entertain members around the world You know, the constant for us is for us to compete, we have to get better faster than the competition in our positioning in the entertainment market. For us, we're positioned, we want to be the best destination for professionally produced content. We want to have the best creators of professionally produced content on the planet and deliver to them the biggest audiences possible. What we're doing in order to kind of continue to compete there is we want to continue to strengthen and expand our entertainment offering, which means working with an expanded set of those best creators. Why we work with creator, we produce content in more than 50 countries around the world. It's not just coming out of the conventional Hollywood creative system. You know, the constant for us is for us to compete, we have to get better faster than the competition in our positioning in the entertainment market. you know the constant for us is for us to compete we have to get better faster than the competition in our positioning in the entertainment market For us, we're positioned, we want to be the best destination for professionally produced content. for us we're positioned we want to be the best destination for professionally produced content We want to have the best creators of professionally produced content on the planet and deliver to them the biggest audiences possible. we want to have the best creators of professionally produced content on the planet and deliver to them the biggest audiences possible What we're doing in order to kind of continue to compete there is we want to continue to strengthen and expand our entertainment offering, which means working with an expanded set of those best creators. what we're doing in order to kind of continue to compete there is we want to continue to strengthen and expand our entertainment offering which means working with an expanded set of those best creators Why we work with creator, we produce content in more than 50 countries around the world. why we work with creator we produce content in more than 50 countries around the world It's not just coming out of the conventional Hollywood creative system. it's not just coming out of the conventional hollywood creative system That's a really important part of it. It's producing in more than 50 countries around the world. It's also embracing creators from social media platforms, creators from open content platforms. You know, Ms. Rachel was the, I think, the 9th most watched TV show we had on the service in the second half of 2025. My son is very grateful for the fact that we now have Mark Rober on the service. We have Alan Chikin Chow on the service coming soon. Like, you know, things that resonate with all these audiences, but it is still professionally produced creator content. It's just an expanded universe of that. We're doing that. You see, we're expanding the content formats that we're getting into, like video podcasts. We're expanding into areas like live, as I mentioned. That's a really important part of it. that's a really important part of it It's producing in more than 50 countries around the world. it's producing in more than 50 countries around the world It's also embracing creators from social media platforms, creators from open content platforms. it's also embracing creators from social media platforms creators from open content platforms You know, Ms. Rachel was the, I think, the 9th most watched TV show we had on the service in the second half of 2025. you know ms rachel was the i think the 9th most watched tv show we had on the service in the second half of 2025 My son is very grateful for the fact that we now have Mark Rober on the service. my son is very grateful for the fact that we now have mark rober on the service We have Alan Chikin Chow on the service coming soon. we have alan chikin chow on the service coming soon Like, you know, things that resonate with all these audiences, but it is still professionally produced creator content. like you know things that resonate with all these audiences but it is still professionally produced creator content It's just an expanded universe of that. it's just an expanded universe of that We're doing that. we're doing that You see, we're expanding the content formats that we're getting into, like video podcasts. you see we're expanding the content formats that we're getting into like video podcasts We're expanding into areas like live, as I mentioned. we're expanding into areas like live as i mentioned It's about really kind of doing it in a way that for us goes after what we think are those most valuable moments of entertainment, because that's really what drives that flywheel and also drives our positioning in a very competitive entertainment ecosystem. It's about really kind of doing it in a way that for us goes after what we think are those most valuable moments of entertainment, because that's really what drives that flywheel and also drives our positioning in a very competitive entertainment ecosystem. it's about really kind of doing it in a way that for us goes after what we think are those most valuable moments of entertainment because that's really what drives that flywheel and also drives our positioning in a very competitive entertainment ecosystem

Speaker 1: Great. We wanted to turn to your decision to walk away from Warner Bros.. You declined to raise your bid for Warner. Great. great We wanted to turn to your decision to walk away from Warner Bros.. we wanted to turn to your decision to walk away from warner bros You declined to raise your bid for Warner. you declined to raise your bid for warner

Speaker 2: We're not still in it? We're not still in it? we're not still in it

Speaker 1: You're out. You're officially out. You're out. you're out You're officially out. you're officially out

Speaker 2: Hard to get a laugh in this room. Okay. Hard to get a laugh in this room. hard to get a laugh in this room Okay. okay

Speaker 1: Within hours, I think you had four days. Within hours, you put an announcement out that you were walking away. Maybe walk us through what led you to this decision. Was it as simple as, you know, a specific price? I know Ted said, you know, the realization was someone was going to lose by $1, but maybe take us behind the scenes and what led you to walk away. Within hours, I think you had four days. within hours i think you had four days Within hours, you put an announcement out that you were walking away. within hours you put an announcement out that you were walking away Maybe walk us through what led you to this decision. maybe walk us through what led you to this decision Was it as simple as, you know, a specific price? was it as simple as you know a specific price I know Ted said, you know, the realization was someone was going to lose by $1, but maybe take us behind the scenes and what led you to walk away. i know ted said you know the realization was someone was going to lose by $1 but maybe take us behind the scenes and what led you to walk away

Speaker 2: The short answer is it was all about price. We can get into it, but we said all along, this was an opportunity that was nice to have at the right price, not a must-have at any price. You know, we love the Warner Bros. business, the assets that were available, that we were bidding, as you know, on the studio and streaming assets, not the entire company. You know, at the end, we had a strong belief, a stronger belief at the end than the beginning that we would have been great stewards of those assets and that business. We also had a stronger belief at the beginning than at the end that we had a clear path to regulatory. The short answer is it was all about price. the short answer is it was all about price We can get into it, but we said all along, this was an opportunity that was nice to have at the right price, not a must-have at any price. we can get into it but we said all along this was an opportunity that was nice to have at the right price not a must-have at any price You know, we love the Warner Bros. business, the assets that were available, that we were bidding, as you know, on the studio and streaming assets, not the entire company. you know we love the warner bros business the assets that were available that we were bidding as you know on the studio and streaming assets not the entire company You know, at the end, we had a strong belief, a stronger belief at the end than the beginning that we would have been great stewards of those assets and that business. you know at the end we had a strong belief a stronger belief at the end than the beginning that we would have been great stewards of those assets and that business We also had a stronger belief at the beginning than at the end that we had a clear path to regulatory. we also had a stronger belief at the beginning than at the end that we had a clear path to regulatory Much to a lot of the speculation that was out there, we had high confidence in all of those things. At the end of the day, we were going to stay very disciplined because this was, for us, an accelerator of our strategy. I mean, it kinda sounded maybe more exotic than it was because we're historically primarily builders and buyers. At the end of the day, this is a business that what we were looking at was primarily, an amazing, set of, a content library and IP, and studio production capabilities that would kind of allow us to bring more great content to our members. Much to a lot of the speculation that was out there, we had high confidence in all of those things. much to a lot of the speculation that was out there we had high confidence in all of those things At the end of the day, we were going to stay very disciplined because this was, for us, an accelerator of our strategy. at the end of the day we were going to stay very disciplined because this was for us an accelerator of our strategy I mean, it kinda sounded maybe more exotic than it was because we're historically primarily builders and buyers. i mean it kinda sounded maybe more exotic than it was because we're historically primarily builders and buyers At the end of the day, this is a business that what we were looking at was primarily, an amazing, set of, a content library and IP, and studio production capabilities that would kind of allow us to bring more great content to our members. at the end of the day this is a business that what we were looking at was primarily an amazing set of a content library and ip and studio production capabilities that would kind of allow us to bring more great content to our members With an HBO Max service, also the opportunity to bring kind of with that complementary service, because there was roughly 80% overlap between HBO subscribers and our subscribers, so a way to kind of continue to expand and evolve our plans and pricing in a way that thought we could deliver more value, even more value at better pricing to members around the world. At the end of the day, it was sort of playing our playbook. We also thought in terms of the seat we were in, we had kind of a unique point of view in terms of how to value those assets, because it is the kind of stuff that we do every day. It was just doing kind of more of it and expanding on that. With an HBO Max service, also the opportunity to bring kind of with that complementary service, because there was roughly 80% overlap between HBO subscribers and our subscribers, so a way to kind of continue to expand and evolve our plans and pricing in a way that thought we could deliver more value, even more value at better pricing to members around the world. with an hbo max service also the opportunity to bring kind of with that complementary service because there was roughly 80% overlap between hbo subscribers and our subscribers so a way to kind of continue to expand and evolve our plans and pricing in a way that thought we could deliver more value even more value at better pricing to members around the world At the end of the day, it was sort of playing our playbook. at the end of the day it was sort of playing our playbook We also thought in terms of the seat we were in, we had kind of a unique point of view in terms of how to value those assets, because it is the kind of stuff that we do every day. we also thought in terms of the seat we were in we had kind of a unique point of view in terms of how to value those assets because it is the kind of stuff that we do every day It was just doing kind of more of it and expanding on that. it was just doing kind of more of it and expanding on that We went into it with a point of view on price. Once it was clear that this was going to be something where it didn't financially make sense to us anymore, it was time to kind of move on. That kind of gets back to kind of where we started. We feel great about our business. This was always from us, a position of offense, not defense. It was again, nice to have, would have loved it. Now we move forward. We move forward with a really healthy business with a long runway of growth. We move forward with $2.8 billion in our pocket that we didn't have a few weeks ago. We went into it with a point of view on price. we went into it with a point of view on price Once it was clear that this was going to be something where it didn't financially make sense to us anymore, it was time to kind of move on. once it was clear that this was going to be something where it didn't financially make sense to us anymore it was time to kind of move on That kind of gets back to kind of where we started. that kind of gets back to kind of where we started We feel great about our business. we feel great about our business This was always from us, a position of offense, not defense. this was always from us a position of offense not defense It was again, nice to have, would have loved it. it was again nice to have would have loved it Now we move forward. now we move forward We move forward with a really healthy business with a long runway of growth. we move forward with a really healthy business with a long runway of growth We move forward with $2.8 billion in our pocket that we didn't have a few weeks ago. we move forward with $2.8 billion in our pocket that we didn't have a few weeks ago You know, we kind of resume our, you know, the business that we were always mostly focused on, and even just things like our capital allocation policy unchanged, but it means now we kind of turn on our share repurchase program. You know, we kind of resume our, you know, the business that we were always mostly focused on, and even just things like our capital allocation policy unchanged, but it means now we kind of turn on our share repurchase program. you know we kind of resume our you know the business that we were always mostly focused on and even just things like our capital allocation policy unchanged but it means now we kind of turn on our share repurchase program

Speaker 1: Right. I guess now that we have to think about PSKY Warner, this is effectively what could be the formation of a larger scaled competitor in the landscape. How do you think about their willingness to license content and kind of your ability to source that? Right. right I guess now that we have to think about PSKY Warner, this is effectively what could be the formation of a larger scaled competitor in the landscape. i guess now that we have to think about psky warner this is effectively what could be the formation of a larger scaled competitor in the landscape How do you think about their willingness to license content and kind of your ability to source that? how do you think about their willingness to license content and kind of your ability to source that

Speaker 2: Well, it's hard for me to speak for them. At the end of the day, we've competed with Warner Bros. for a long time and also do business with Warner Bros., we compete with Paramount, do business with them. In general, the entertainment industry is one where it's more typical than atypical to both compete and have commercial relationships. We kind of hope and expect that that will be the case here too. You know, licensing ebbs and flows for us in the industry, so with particular suppliers. You know, we continue to have really strong access to content from suppliers around the world. We don't have any supplier, like, meaningful supplier concentration. There's no single supplier that's more than a small minority share of our viewing. Well, it's hard for me to speak for them. well it's hard for me to speak for them At the end of the day, we've competed with Warner Bros. for a long time and also do business with Warner Bros., we compete with Paramount, do business with them. at the end of the day we've competed with warner bros for a long time and also do business with warner bros we compete with paramount do business with them In general, the entertainment industry is one where it's more typical than atypical to both compete and have commercial relationships. in general the entertainment industry is one where it's more typical than atypical to both compete and have commercial relationships We kind of hope and expect that that will be the case here too. we kind of hope and expect that that will be the case here too You know, licensing ebbs and flows for us in the industry, so with particular suppliers. you know licensing ebbs and flows for us in the industry so with particular suppliers You know, we continue to have really strong access to content from suppliers around the world. you know we continue to have really strong access to content from suppliers around the world We don't have any supplier, like, meaningful supplier concentration. we don't have any supplier like meaningful supplier concentration There's no single supplier that's more than a small minority share of our viewing. there's no single supplier that's more than a small minority share of our viewing Again, it ebbs and flows. We kinda, you know, look forward to competing with the new Paramount, but also doing business with them. You know, I mentioned in our Q4 call, we talked about we're doing more licensing of Paramount content. I think today maybe we renewed our Little House on the Prairie show with Paramount. For us, it's business as usual, but it's really kind of more in their court, and we'll see. Again, it ebbs and flows. again it ebbs and flows We kinda, you know, look forward to competing with the new Paramount, but also doing business with them. we kinda you know look forward to competing with the new paramount but also doing business with them You know, I mentioned in our Q4 call, we talked about we're doing more licensing of Paramount content. you know i mentioned in our q4 call we talked about we're doing more licensing of paramount content I think today maybe we renewed our Little House on the Prairie show with Paramount. i think today maybe we renewed our little house on the prairie show with paramount For us, it's business as usual, but it's really kind of more in their court, and we'll see. for us it's business as usual but it's really kind of more in their court and we'll see

Speaker 1: Great. We wanted to ask if there's any updated change or to your philosophy around M&A. You obviously mentioned historically you're builders, not buyers. Was there anything in this experience that changed kind of your framework and approach? Was it worth it? Anything on the regulatory front you would bring up or how we should think about your approach to other studios if they were to ever come available? Great. great We wanted to ask if there's any updated change or to your philosophy around M&A. we wanted to ask if there's any updated change or to your philosophy around m&a You obviously mentioned historically you're builders, not buyers. you obviously mentioned historically you're builders not buyers Was there anything in this experience that changed kind of your framework and approach? was there anything in this experience that changed kind of your framework and approach Was it worth it? was it worth it Anything on the regulatory front you would bring up or how we should think about your approach to other studios if they were to ever come available? anything on the regulatory front you would bring up or how we should think about your approach to other studios if they were to ever come available

Speaker 2: I know it sounds boring, but there's really no change. Again, it's like, you know, our approach to M&A is part of our approach to capital allocation, which is again, it's the same. First and foremost, we allocate our capital to invest strategically in our growth, that's primarily through organic investment and occasionally through M&A. Then we, you know, we ensure that we've got a strong balance sheet with ample liquidity. Lastly, we return excess cash to shareholders through share repurchase. M&A is part of that. Again, it's a tactic to accelerate our strategy. In the case of Warner Bros., it just happened to be an opportunity. I know it sounds boring, but there's really no change. i know it sounds boring but there's really no change Again, it's like, you know, our approach to M&A is part of our approach to capital allocation, which is again, it's the same. again it's like you know our approach to m&a is part of our approach to capital allocation which is again it's the same First and foremost, we allocate our capital to invest strategically in our growth, that's primarily through organic investment and occasionally through M&A. first and foremost we allocate our capital to invest strategically in our growth that's primarily through organic investment and occasionally through m&a Then we, you know, we ensure that we've got a strong balance sheet with ample liquidity. then we you know we ensure that we've got a strong balance sheet with ample liquidity Lastly, we return excess cash to shareholders through share repurchase. lastly we return excess cash to shareholders through share repurchase M&A is part of that. m&a is part of that Again, it's a tactic to accelerate our strategy. again it's a tactic to accelerate our strategy In the case of Warner Bros., it just happened to be an opportunity. in the case of warner bros it just happened to be an opportunity It's rare to have an opportunity to have studio and IP assets at that scale that aren't attached to a lot of other legacy businesses that are not attractive to us. We've been really clear, we don't have an interest in buying legacy linear assets and managing through that transition. We'll continue to kind of stay focused on what are those opportunities, strategic accelerators. Again, no change to our focus. It just this maybe felt a little bit more exotic because of the size. The strategy and approach to capital allocation is unchanged. It's rare to have an opportunity to have studio and IP assets at that scale that aren't attached to a lot of other legacy businesses that are not attractive to us. it's rare to have an opportunity to have studio and ip assets at that scale that aren't attached to a lot of other legacy businesses that are not attractive to us We've been really clear, we don't have an interest in buying legacy linear assets and managing through that transition. we've been really clear we don't have an interest in buying legacy linear assets and managing through that transition We'll continue to kind of stay focused on what are those opportunities, strategic accelerators. we'll continue to kind of stay focused on what are those opportunities strategic accelerators Again, no change to our focus. again no change to our focus It just this maybe felt a little bit more exotic because of the size. it just this maybe felt a little bit more exotic because of the size The strategy and approach to capital allocation is unchanged. the strategy and approach to capital allocation is unchanged

Speaker 3: Shifting back to the core business, you disclosed recently a milestone for subscribers reaching over 325 million. I think that's basically 50% of the 700 million connected TV households that you talked about before as an opportunity. How should we think about the member opportunity from here? Is that still the right framework that we should be thinking about in terms of what you're trying to tackle? Shifting back to the core business, you disclosed recently a milestone for subscribers reaching over 325 million. shifting back to the core business you disclosed recently a milestone for subscribers reaching over 325 million I think that's basically 50% of the 700 million connected TV households that you talked about before as an opportunity. i think that's basically 50% of the 700 million connected tv households that you talked about before as an opportunity How should we think about the member opportunity from here? how should we think about the member opportunity from here Is that still the right framework that we should be thinking about in terms of what you're trying to tackle? is that still the right framework that we should be thinking about in terms of what you're trying to tackle

Speaker 2: From a member opportunity, yes, generally. That's a growing universe of connected households. Our estimate now is that that connected household universe is more like $800 million, a little over $800 million versus the number you quoted. You know, we're still less than 50% penetrated of connected households around the world, and we're growing into that. We're growing into it in our more penetrated markets and our less penetrated markets. You saw that in our last earnings report. You know, we've got healthy growth in every region around the world. We continue to have a long runway to growth. Also importantly, you know, we're building out multiple levers of growth. From a member opportunity, yes, generally. from a member opportunity yes generally That's a growing universe of connected households. that's a growing universe of connected households Our estimate now is that that connected household universe is more like $800 million, a little over $800 million versus the number you quoted. our estimate now is that that connected household universe is more like $800 million a little over $800 million versus the number you quoted You know, we're still less than 50% penetrated of connected households around the world, and we're growing into that. you know we're still less than 50% penetrated of connected households around the world and we're growing into that We're growing into it in our more penetrated markets and our less penetrated markets. we're growing into it in our more penetrated markets and our less penetrated markets You saw that in our last earnings report. you saw that in our last earnings report You know, we've got healthy growth in every region around the world. you know we've got healthy growth in every region around the world We continue to have a long runway to growth. we continue to have a long runway to growth Also importantly, you know, we're building out multiple levers of growth. also importantly you know we're building out multiple levers of growth One of the things we talked about, you know, a few years ago, and we slowed down, is we wanted to make sure we built to a healthy multiple levers of growth, including kind of launching the ad business. Now you kind of see that. We have growth through member growth. We have growth through kind of building member value and pricing into that subscription value. We have growth through our ad business, you know, taking that. You can kind of do the math on that this year, going from $1.5 billion of ads revenue last year to $3 billion this year. You look at our overall revenue guidance, which is, you know, ±$6 billion of incremental revenue growth year-over-year. One of the things we talked about, you know, a few years ago, and we slowed down, is we wanted to make sure we built to a healthy multiple levers of growth, including kind of launching the ad business. one of the things we talked about you know a few years ago and we slowed down is we wanted to make sure we built to a healthy multiple levers of growth including kind of launching the ad business Now you kind of see that. now you kind of see that We have growth through member growth. we have growth through member growth We have growth through kind of building member value and pricing into that subscription value. we have growth through kind of building member value and pricing into that subscription value We have growth through our ad business, you know, taking that. we have growth through our ad business you know taking that You can kind of do the math on that this year, going from $1.5 billion of ads revenue last year to $3 billion this year. you can kind of do the math on that this year going from $1.5 billion of ads revenue last year to $3 billion this year You look at our overall revenue guidance, which is, you know, ±$6 billion of incremental revenue growth year-over-year. you look at our overall revenue guidance which is you know ±$6 billion of incremental revenue growth year-over-year That puts ads at about a 25% contributor of growth. We're delivering more balanced growth across all of those, and that's what we've really been building to, and that's playing out in the business. That puts ads at about a 25% contributor of growth. that puts ads at about a 25% contributor of growth We're delivering more balanced growth across all of those, and that's what we've really been building to, and that's playing out in the business. we're delivering more balanced growth across all of those and that's what we've really been building to and that's playing out in the business

Speaker 3: If you think about the content investments that's going into growing that member opportunity, two areas that you mentioned earlier about podcasting, and I think another one that more recently an experiment is vertical video. If you think about the content investments that's going into growing that member opportunity, two areas that you mentioned earlier about podcasting, and I think another one that more recently an experiment is vertical video. if you think about the content investments that's going into growing that member opportunity two areas that you mentioned earlier about podcasting and i think another one that more recently an experiment is vertical video

Speaker 2: Yeah. Yeah. yeah

Speaker 3: Can you just maybe outline how we should think about those as interesting opportunities for you? More broadly, whether or not expanding more deeply into mobile consumption is something that you're really focused on. Can you just maybe outline how we should think about those as interesting opportunities for you? can you just maybe outline how we should think about those as interesting opportunities for you More broadly, whether or not expanding more deeply into mobile consumption is something that you're really focused on. more broadly whether or not expanding more deeply into mobile consumption is something that you're really focused on

Speaker 2: Yeah, sure. Starting, I guess, with podcasts, I think we think of that as, like, we're always looking for those as I mentioned before, those most valuable areas to expand and strengthen our entertainment offering. Video podcast is one of those examples to us, where we think there's an opportunity. Not dissimilar to how we expanded over time. There was a day when all we were scripted TV and film, English language, and then we went into unscripted, and then we went to non-English TV and film. We went to animation and anime and then live. This is another potential content format or category for us. We're learning into it in areas that we know resonate with our members, so things like pop culture and lifestyle and true crime. Yeah, sure. yeah sure Starting, I guess, with podcasts, I think we think of that as, like, we're always looking for those as I mentioned before, those most valuable areas to expand and strengthen our entertainment offering. starting i guess with podcasts i think we think of that as like we're always looking for those as i mentioned before those most valuable areas to expand and strengthen our entertainment offering Video podcast is one of those examples to us, where we think there's an opportunity. video podcast is one of those examples to us where we think there's an opportunity Not dissimilar to how we expanded over time. not dissimilar to how we expanded over time There was a day when all we were scripted TV and film, English language, and then we went into unscripted, and then we went to non-English TV and film. there was a day when all we were scripted tv and film english language and then we went into unscripted and then we went to non-english tv and film We went to animation and anime and then live. we went to animation and anime and then live This is another potential content format or category for us. this is another potential content format or category for us We're learning into it in areas that we know resonate with our members, so things like pop culture and lifestyle and true crime. we're learning into it in areas that we know resonate with our members so things like pop culture and lifestyle and true crime It also, you know, important thing about video podcasts for us is, you know, again, we're trying to win more of these moments of truth, and with video podcasts, there's a because it's frankly a little easier to get in and out of them. It plays better on mobile devices. It's sometimes you can kinda listen and not be watching all the time, so it has a little bit of the back and forth there. We're seeing, and it's still early days, it's still very early signal, but Our video podcasts are over-indexing on time of the day, like morning and afternoon when, relative to our core kind of subscription TV, film on-demand offering. Similarly, it's over-indexing on the mobile device, so that's pretty cool. It also, you know, important thing about video podcasts for us is, you know, again, we're trying to win more of these moments of truth, and with video podcasts, there's a because it's frankly a little easier to get in and out of them. it also you know important thing about video podcasts for us is you know again we're trying to win more of these moments of truth and with video podcasts there's a because it's frankly a little easier to get in and out of them It plays better on mobile devices. it plays better on mobile devices It's sometimes you can kinda listen and not be watching all the time, so it has a little bit of the back and forth there. it's sometimes you can kinda listen and not be watching all the time so it has a little bit of the back and forth there We're seeing, and it's still early days, it's still very early signal, but Our video podcasts are over-indexing on time of the day, like morning and afternoon when, relative to our core kind of subscription TV, film on-demand offering. we're seeing and it's still early days it's still very early signal but our video podcasts are over-indexing on time of the day like morning and afternoon when relative to our core kind of subscription tv film on-demand offering Similarly, it's over-indexing on the mobile device, so that's pretty cool. similarly it's over-indexing on the mobile device so that's pretty cool We'll kind of see where that plays out, and we'll learn into it. Then on vertical video, yeah, you're right. We've been testing into it for several months now. You can see in our mobile feed, there's vertical video clips, mostly film and TV series and film clips today. We'll expand that to more content formats like video podcasting. I think, more importantly, we're gonna continue to evolve and improve our mobile experience broadly. I think we touched on that in our last earnings letter. We'll kind of see where that plays out, and we'll learn into it. we'll kind of see where that plays out and we'll learn into it Then on vertical video, yeah, you're right. then on vertical video yeah you're right We've been testing into it for several months now. we've been testing into it for several months now You can see in our mobile feed, there's vertical video clips, mostly film and TV series and film clips today. you can see in our mobile feed there's vertical video clips mostly film and tv series and film clips today We'll expand that to more content formats like video podcasting. we'll expand that to more content formats like video podcasting I think, more importantly, we're gonna continue to evolve and improve our mobile experience broadly. i think more importantly we're gonna continue to evolve and improve our mobile experience broadly I think we touched on that in our last earnings letter. i think we touched on that in our last earnings letter In the back half of this year, we'll roll out our new mobile user interface, which, similar to what we did with our TV user interface last year where we rolled that out broadly and that kinda created a new platform for us that, you know, mostly was visually, more compelling, I think. And now we're rolling out more adaptive and personalized capabilities and all that plumbing underneath it. That's the same thing with mobile, where we'll kind of roll it out this year, and then that's now a platform that we can evolve and optimize for, you know, years and years to come, so. In the back half of this year, we'll roll out our new mobile user interface, which, similar to what we did with our TV user interface last year where we rolled that out broadly and that kinda created a new platform for us that, you know, mostly was visually, more compelling, I think. in the back half of this year we'll roll out our new mobile user interface which similar to what we did with our tv user interface last year where we rolled that out broadly and that kinda created a new platform for us that you know mostly was visually more compelling i think And now we're rolling out more adaptive and personalized capabilities and all that plumbing underneath it. and now we're rolling out more adaptive and personalized capabilities and all that plumbing underneath it That's the same thing with mobile, where we'll kind of roll it out this year, and then that's now a platform that we can evolve and optimize for, you know, years and years to come, so. that's the same thing with mobile where we'll kind of roll it out this year and then that's now a platform that we can evolve and optimize for you know years and years to come so

Speaker 3: We'd be remiss if we didn't ask about AI at our TMT conference. It's been a big topic over the last few days. Can you just talk about the puts and takes for your business? You've talked historically about the benefits that it might have to production and the production process. There's obviously a lot more existential angst as well about lowering barriers to entry and creating more of an opportunity for others as well, to get into space. Can you just talk about the relative positioning and how you're thinking about it currently? We'd be remiss if we didn't ask about AI at our TMT conference. we'd be remiss if we didn't ask about ai at our tmt conference It's been a big topic over the last few days. it's been a big topic over the last few days Can you just talk about the puts and takes for your business? can you just talk about the puts and takes for your business You've talked historically about the benefits that it might have to production and the production process. you've talked historically about the benefits that it might have to production and the production process There's obviously a lot more existential angst as well about lowering barriers to entry and creating more of an opportunity for others as well, to get into space. there's obviously a lot more existential angst as well about lowering barriers to entry and creating more of an opportunity for others as well to get into space Can you just talk about the relative positioning and how you're thinking about it currently? can you just talk about the relative positioning and how you're thinking about it currently

Speaker 2: Yeah, sure. I mean, we look at it as more puts than takes, I guess, if you're puts and takes. you know, it's a really exciting time for us. I mean, we look at, you know, AI and Gen AI and, you know, it's going to create, you know, a lot of things better: better content, better product experience for the industry. For us, you know, it's exciting because we're one of, we believe one of the few companies on the planet that has is really good at entertainment and technology. We've got 25 years of history of using AI and machine learning tools and now applying Gen AI. Our DNA is technology-rich. Yeah, sure. yeah sure I mean, we look at it as more puts than takes, I guess, if you're puts and takes. you know, it's a really exciting time for us. i mean we look at it as more puts than takes i guess if you're puts and takes you know it's a really exciting time for us I mean, we look at, you know, AI and Gen AI and, you know, it's going to create, you know, a lot of things better: better content, better product experience for the industry. i mean we look at you know ai and gen ai and you know it's going to create you know a lot of things better better content better product experience for the industry For us, you know, it's exciting because we're one of, we believe one of the few companies on the planet that has is really good at entertainment and technology. for us you know it's exciting because we're one of we believe one of the few companies on the planet that has is really good at entertainment and technology We've got 25 years of history of using AI and machine learning tools and now applying Gen AI. we've got 25 years of history of using ai and machine learning tools and now applying gen ai Our DNA is technology-rich. our dna is technology-rich We have deep data sets, and we have, you know, products and business operations at global scale. When you put those things together, we see, like, really exciting opportunities in terms of the application of GenAI to improve every aspect of our business. The key for us is, like, we're also pro-human. You know, we fundamentally kinda believe that creativity and the best of creativity is going to be done by people, and there's a pretty small subset of amazing creators on the planet. For us, we're focused on, like, from the content side, how do we have GenAI kind of infused tools that help bring out the best of storytelling for those creators? We have deep data sets, and we have, you know, products and business operations at global scale. we have deep data sets and we have you know products and business operations at global scale When you put those things together, we see, like, really exciting opportunities in terms of the application of GenAI to improve every aspect of our business. when you put those things together we see like really exciting opportunities in terms of the application of genai to improve every aspect of our business The key for us is, like, we're also pro-human. the key for us is like we're also pro-human You know, we fundamentally kinda believe that creativity and the best of creativity is going to be done by people, and there's a pretty small subset of amazing creators on the planet. you know we fundamentally kinda believe that creativity and the best of creativity is going to be done by people and there's a pretty small subset of amazing creators on the planet For us, we're focused on, like, from the content side, how do we have GenAI kind of infused tools that help bring out the best of storytelling for those creators? for us we're focused on like from the content side how do we have genai kind of infused tools that help bring out the best of storytelling for those creators It's an expanding set of creators, but still relatively few on the planet that we think make the best of creative expression, we wanna get the tools in their hands. Again, it's creators from more than 50 countries around the world. It's from social platforms. It's from open content platforms. We're focused on those, you know, infusing Gen AI tools into the creative process for people to make the best storytelling. We're also focused on Gen AI and when we think about, like, our product roadmap and our product experience. Our CTO has talked about for our product roadmap, we're focused on more personalization, more interactivity, greater immersiveness. All those things play to an expanded entertainment offering across core film and TV, live, games, et cetera. It's an expanding set of creators, but still relatively few on the planet that we think make the best of creative expression, we wanna get the tools in their hands. it's an expanding set of creators but still relatively few on the planet that we think make the best of creative expression we wanna get the tools in their hands Again, it's creators from more than 50 countries around the world. again it's creators from more than 50 countries around the world It's from social platforms. it's from social platforms It's from open content platforms. it's from open content platforms We're focused on those, you know, infusing Gen AI tools into the creative process for people to make the best storytelling. we're focused on those you know infusing gen ai tools into the creative process for people to make the best storytelling We're also focused on Gen AI and when we think about, like, our product roadmap and our product experience. we're also focused on gen ai and when we think about like our product roadmap and our product experience Our CTO has talked about for our product roadmap, we're focused on more personalization, more interactivity, greater immersiveness. our cto has talked about for our product roadmap we're focused on more personalization more interactivity greater immersiveness All those things play to an expanded entertainment offering across core film and TV, live, games, et cetera. all those things play to an expanded entertainment offering across core film and tv live games et cetera You think about that product roadmap and infusing GenAI into it, we think using those models, it's an accelerator and enabler of that roadmap. Great for us because, you know, product done well and a product experience done well, matching the right content to the right individual at the right time, it's a force multiplier on our content investments. Those things are really powerful. On the advertising side, I mean, you all see it as well in terms of GenAI. We're, you know, still early days in our advertising rollout. This is our first full year of our ad tech stack. You think about that product roadmap and infusing GenAI into it, we think using those models, it's an accelerator and enabler of that roadmap. you think about that product roadmap and infusing genai into it we think using those models it's an accelerator and enabler of that roadmap Great for us because, you know, product done well and a product experience done well, matching the right content to the right individual at the right time, it's a force multiplier on our content investments. great for us because you know product done well and a product experience done well matching the right content to the right individual at the right time it's a force multiplier on our content investments Those things are really powerful. those things are really powerful On the advertising side, I mean, you all see it as well in terms of GenAI. on the advertising side i mean you all see it as well in terms of genai We're, you know, still early days in our advertising rollout. we're you know still early days in our advertising rollout This is our first full year of our ad tech stack. this is our first full year of our ad tech stack Infusing Gen AI in that tech stack and those capabilities, we see it in terms of, in terms of just the advertising, the creative process itself, in terms of the creative formats that can be Gen AI created. It's improving contextual targeting and placement. It's, again, it's just going to be an enabler and accelerator of the effectiveness of advertising for our clients and for ourselves. Across the board, we're excited about the opportunity, but an opportunity for us is one where it's all about enabling the best of those creators and delivering the best of and the largest audiences in a professionally produced content ecosystem. Infusing Gen AI in that tech stack and those capabilities, we see it in terms of, in terms of just the advertising, the creative process itself, in terms of the creative formats that can be Gen AI created. infusing gen ai in that tech stack and those capabilities we see it in terms of in terms of just the advertising the creative process itself in terms of the creative formats that can be gen ai created It's improving contextual targeting and placement. it's improving contextual targeting and placement It's, again, it's just going to be an enabler and accelerator of the effectiveness of advertising for our clients and for ourselves. it's again it's just going to be an enabler and accelerator of the effectiveness of advertising for our clients and for ourselves Across the board, we're excited about the opportunity, but an opportunity for us is one where it's all about enabling the best of those creators and delivering the best of and the largest audiences in a professionally produced content ecosystem. across the board we're excited about the opportunity but an opportunity for us is one where it's all about enabling the best of those creators and delivering the best of and the largest audiences in a professionally produced content ecosystem

Speaker 1: All right. We wanted to turn to pricing. You were pretty clear on the earnings call that it was business as usual, even as the Warner deal was pending. How would you say recent price increases have fared relative to your expectations? Do you have any view in kind of the change in your pricing power? Should we expect anything different now that Warner is kind of in the rear view? All right. all right We wanted to turn to pricing. we wanted to turn to pricing You were pretty clear on the earnings call that it was business as usual, even as the Warner deal was pending. you were pretty clear on the earnings call that it was business as usual even as the warner deal was pending How would you say recent price increases have fared relative to your expectations? how would you say recent price increases have fared relative to your expectations Do you have any view in kind of the change in your pricing power? do you have any view in kind of the change in your pricing power Should we expect anything different now that Warner is kind of in the rear view? should we expect anything different now that warner is kind of in the rear view

Speaker 2: I wouldn't expect anything different before or after. We said we were gonna kind of stay focused and continue to run the business as we always have. You know, we continue to deliver more entertainment value to our members around the world. We talked about, you know. I talked at the start of this, that when we've gotten more sophisticated about how we measure entertainment value in terms of, like, engagement quality, as an example, and we had record engagement quality scores at the end of last year that we continue to build on, so. We see that kind of, the proof of that in terms of how pricing and pricing changes have rolled out. I wouldn't expect anything different before or after. i wouldn't expect anything different before or after We said we were gonna kind of stay focused and continue to run the business as we always have. we said we were gonna kind of stay focused and continue to run the business as we always have You know, we continue to deliver more entertainment value to our members around the world. you know we continue to deliver more entertainment value to our members around the world We talked about, you know. we talked about you know I talked at the start of this, that when we've gotten more sophisticated about how we measure entertainment value in terms of, like, engagement quality, as an example, and we had record engagement quality scores at the end of last year that we continue to build on, so. i talked at the start of this that when we've gotten more sophisticated about how we measure entertainment value in terms of like engagement quality as an example and we had record engagement quality scores at the end of last year that we continue to build on so We see that kind of, the proof of that in terms of how pricing and pricing changes have rolled out. we see that kind of the proof of that in terms of how pricing and pricing changes have rolled out We've had really high customer satisfaction, really high brand health, and then pricing has, you know, gone as well, you know, or better than expected. Essentially, there's kinda no change there. We'll continue to focus on what we do, which is deliver more and more value to members around the world and then occasionally price into that value. We've had really high customer satisfaction, really high brand health, and then pricing has, you know, gone as well, you know, or better than expected. we've had really high customer satisfaction really high brand health and then pricing has you know gone as well you know or better than expected Essentially, there's kinda no change there. essentially there's kinda no change there We'll continue to focus on what we do, which is deliver more and more value to members around the world and then occasionally price into that value. we'll continue to focus on what we do which is deliver more and more value to members around the world and then occasionally price into that value

Speaker 1: Maybe just spend a second on the quality of engagement. How do you guys actually measure that? Like, obviously, you know, Taipei 101, to your point, very special, really engaged. Like, how should we think about that from the outside? Maybe just spend a second on the quality of engagement. maybe just spend a second on the quality of engagement How do you guys actually measure that? how do you guys actually measure that Like, obviously, you know, Taipei 101, to your point, very special, really engaged. like obviously you know taipei 101 to your point very special really engaged Like, how should we think about that from the outside? like how should we think about that from the outside

Speaker 2: You know, I, you know, I'm probably not gonna get into all that. You know, it's a very competitive business and we've got multiple metrics. One of the most basic ways that I think Bela and Ted have been recommending is one of the things we look at is do people press play and stay? That's a very basic way to think about it. Do they like what they watched? I'm not gonna kinda get into the. You know, I, you know, I'm probably not gonna get into all that. you know i you know i'm probably not gonna get into all that You know, it's a very competitive business and we've got multiple metrics. you know it's a very competitive business and we've got multiple metrics One of the most basic ways that I think Bela and Ted have been recommending is one of the things we look at is do people press play and stay? one of the most basic ways that i think bela and ted have been recommending is one of the things we look at is do people press play and stay That's a very basic way to think about it. that's a very basic way to think about it Do they like what they watched? do they like what they watched I'm not gonna kinda get into the. i'm not gonna kinda get into the

Speaker 1: We wanted to talk more about advertising. Obviously, you mentioned roughly double revenue this year to over $3 billion. I think fill rate has been one of the kinda question marks. Is it fair to say there's opportunity to continue to improve the fill rate and stay at very attractive levels in terms of ad load? We wanted to talk more about advertising. we wanted to talk more about advertising Obviously, you mentioned roughly double revenue this year to over $3 billion. obviously you mentioned roughly double revenue this year to over $3 billion I think fill rate has been one of the kinda question marks. i think fill rate has been one of the kinda question marks Is it fair to say there's opportunity to continue to improve the fill rate and stay at very attractive levels in terms of ad load? is it fair to say there's opportunity to continue to improve the fill rate and stay at very attractive levels in terms of ad load

Speaker 2: Yes. You know, we're continuing to grow our ad business in a healthy way, expect to rough doubling again this year. You know, it's a result of the fact that advertisers are pleased with things we've delivered on. We're delivering on an increasing scale. We're, you know, we've gone beyond kind of critical scale in all of our ads markets. We deliver a highly attentive and engaged audience. We kind of do that with a really strong slate of titles. We also now have a tech stack that brings kind of capabilities to market faster. Yes. yes You know, we're continuing to grow our ad business in a healthy way, expect to rough doubling again this year. you know we're continuing to grow our ad business in a healthy way expect to rough doubling again this year You know, it's a result of the fact that advertisers are pleased with things we've delivered on. you know it's a result of the fact that advertisers are pleased with things we've delivered on We're delivering on an increasing scale. we're delivering on an increasing scale We're, you know, we've gone beyond kind of critical scale in all of our ads markets. we're you know we've gone beyond kind of critical scale in all of our ads markets We deliver a highly attentive and engaged audience. we deliver a highly attentive and engaged audience We kind of do that with a really strong slate of titles. we kind of do that with a really strong slate of titles We also now have a tech stack that brings kind of capabilities to market faster. we also now have a tech stack that brings kind of capabilities to market faster With all of that, then with the tech stack in particular kinda layered into that, we're able to deliver more ad products, and we're also able to kind of, stitch together more, more demand, more demand from things like, you know, external DSPs. It allows us to do more programmatic integrations, more data integrations on the programmatic side. All of that stuff allows us to bring more demand into the system. We increased fill rate last year. We'll continue to increase fill rate this year as we bring all this online. I should also say we don't manage to fill rate. We manage to overall ad revenue. We're trying to manage to that while also maintaining premium CPM marketplace, and that's what we're doing. With all of that, then with the tech stack in particular kinda layered into that, we're able to deliver more ad products, and we're also able to kind of, stitch together more, more demand, more demand from things like, you know, external DSPs. with all of that then with the tech stack in particular kinda layered into that we're able to deliver more ad products and we're also able to kind of stitch together more more demand more demand from things like you know external dsps It allows us to do more programmatic integrations, more data integrations on the programmatic side. it allows us to do more programmatic integrations more data integrations on the programmatic side All of that stuff allows us to bring more demand into the system. all of that stuff allows us to bring more demand into the system We increased fill rate last year. we increased fill rate last year We'll continue to increase fill rate this year as we bring all this online. we'll continue to increase fill rate this year as we bring all this online I should also say we don't manage to fill rate. i should also say we don't manage to fill rate We manage to overall ad revenue. we manage to overall ad revenue We're trying to manage to that while also maintaining premium CPM marketplace, and that's what we're doing. we're trying to manage to that while also maintaining premium cpm marketplace and that's what we're doing Fill is part of the path to get there. Fill is part of the path to get there. fill is part of the path to get there

Speaker 1: Great. We wanted to hit on sports. Can you update us on your financial framework for assessing sports rights? You mentioned before you've licensed some sports rights like NFL games, Women's World Cup, MLB, but you've also largely been disinterested in kinda big regular season rights. How should we assess, you know, how you're thinking about the approach to sports? Great. great We wanted to hit on sports. we wanted to hit on sports Can you update us on your financial framework for assessing sports rights? can you update us on your financial framework for assessing sports rights You mentioned before you've licensed some sports rights like NFL games, Women's World Cup, MLB, but you've also largely been disinterested in kinda big regular season rights. you mentioned before you've licensed some sports rights like nfl games women's world cup mlb but you've also largely been disinterested in kinda big regular season rights How should we assess, you know, how you're thinking about the approach to sports? how should we assess you know how you're thinking about the approach to sports

Speaker 2: We think about sports as we love sports, it has to work for us as well, for our members and for our business. For us, sports is part of our overall live event strategy. As part of live, sports is a subset of that. We don't love the business of being in the business of big seasons of big sports. We think that's a pretty tough business to be in, we don't think we need it to deliver that improving member value. We like it as part of our event strategy and see that with, like, the NFL on Christmas Day on Netflix is kind of eventizing a couple NFL games a year. See it with things like the Canelo-Crawford fight. We think about sports as we love sports, it has to work for us as well, for our members and for our business. we think about sports as we love sports it has to work for us as well for our members and for our business For us, sports is part of our overall live event strategy. for us sports is part of our overall live event strategy As part of live, sports is a subset of that. as part of live sports is a subset of that We don't love the business of being in the business of big seasons of big sports. we don't love the business of being in the business of big seasons of big sports We think that's a pretty tough business to be in, we don't think we need it to deliver that improving member value. we think that's a pretty tough business to be in we don't think we need it to deliver that improving member value We like it as part of our event strategy and see that with, like, the NFL on Christmas Day on Netflix is kind of eventizing a couple NFL games a year. we like it as part of our event strategy and see that with like the nfl on christmas day on netflix is kind of eventizing a couple nfl games a year See it with things like the Canelo-Crawford fight. see it with things like the canelo-crawford fight You see it with, you know, WBC in Japan starting tomorrow, where it's, you know, that's big in Japan, big in some other countries around the world as well. We're excited for those opportunities and continuing to build on those opportunities and find a way where sports can be a nice complement to our business. Seems with the big sports events. You know, we're gonna stay disciplined in terms of how we invest into it. You see it with, you know, WBC in Japan starting tomorrow, where it's, you know, that's big in Japan, big in some other countries around the world as well. you see it with you know wbc in japan starting tomorrow where it's you know that's big in japan big in some other countries around the world as well We're excited for those opportunities and continuing to build on those opportunities and find a way where sports can be a nice complement to our business. we're excited for those opportunities and continuing to build on those opportunities and find a way where sports can be a nice complement to our business Seems with the big sports events. seems with the big sports events You know, we're gonna stay disciplined in terms of how we invest into it. you know we're gonna stay disciplined in terms of how we invest into it

Speaker 3: Looks like we're running out of time, but maybe just the last one from me. Anything on the content slate that you'd be highlighting in the second half? When is KPop Demon Hunters 2 coming out? Looks like we're running out of time, but maybe just the last one from me. looks like we're running out of time but maybe just the last one from me Anything on the content slate that you'd be highlighting in the second half? anything on the content slate that you'd be highlighting in the second half When is KPop Demon Hunters 2 coming out? when is kpop demon hunters 2 coming out

Speaker 2: Oh, man. I believe they're... I don't know when that's coming out. I can't wait. I loved it, I gotta say. I mean, anyway, I won't... What's coming out, you know, I am, I'm a big fan of One Piece. I don't know if you guys watch One Piece. I, you know, I think it's feel good, and I think that's, is that next week? It's coming out soon. It's actually. That'll be fun. For some of you guys, Peaky Blinders, the movie, is coming out soon, I think you'll enjoy that. For others, Bridgerton, now all episodes have dropped if you wanna catch up on that. There's a lot of I mean, the thing with us is, like, and I don't do this as well as Ted. Oh, man. oh man I believe they're... i believe they're I don't know when that's coming out. i don't know when that's coming out I can't wait. i can't wait I loved it, I gotta say. i loved it i gotta say I mean, anyway, I won't... i mean anyway i won't What's coming out, you know, I am, I'm a big fan of One Piece. what's coming out you know i am i'm a big fan of one piece I don't know if you guys watch One Piece. i don't know if you guys watch one piece I, you know, I think it's feel good, and I think that's, is that next week? i you know i think it's feel good and i think that's is that next week It's coming out soon. it's coming out soon It's actually. it's actually That'll be fun. that'll be fun For some of you guys, Peaky Blinders, the movie, is coming out soon, I think you'll enjoy that. for some of you guys peaky blinders the movie is coming out soon i think you'll enjoy that For others, Bridgerton, now all episodes have dropped if you wanna catch up on that. for others bridgerton now all episodes have dropped if you wanna catch up on that There's a lot of I mean, the thing with us is, like, and I don't do this as well as Ted. there's a lot of i mean the thing with us is like and i don't do this as well as ted You know, we could do five minutes of running through the steady drum beat of titles across film and TV and different content formats around the world, but that's what makes, you know, I think Netflix great and exciting. It's something fun and amazing for everyone, and it's not like one and done. We keep at it every week, every month, so. You know, we could do five minutes of running through the steady drum beat of titles across film and TV and different content formats around the world, but that's what makes, you know, I think Netflix great and exciting. you know we could do five minutes of running through the steady drum beat of titles across film and tv and different content formats around the world but that's what makes you know i think netflix great and exciting It's something fun and amazing for everyone, and it's not like one and done. it's something fun and amazing for everyone and it's not like one and done We keep at it every week, every month, so. we keep at it every week every month so

Speaker 3: Thank you so much for your time. Thank you so much for your time. thank you so much for your time

Speaker 2: All righty. Thanks, guys. All righty. all righty Thanks, guys. thanks guys