Netflix (NFLX) 20 Jan 212020 Q4 Earnings call transcript

Company Profile

Participants

Reed Hastings	Co-Founder, Chairman, President and Co-CEO
Ted Sarandos	Co-CEO and Chief Content Officer
Spencer Neumann	CFO
Greg Peters	COO and Chief Product Officer
Spencer Wang	VP of Finance, Corporate Development and IR
Kannan Venkateshwar	Barclays Bank PLC

Call transcript

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Spencer Wang

Hello, and welcome to the Netflix Q4 2020 Earnings Interview. I'm Spencer Wang, VP of IR and Corporate Development.

Joining me today are Co-CEO, Reed Hastings; Co-CEO and Chief Content Officer, Ted Sarandos; COO and Chief Product Officer, Greg Peters; and CFO, Spence Neumann.

Our interviewer this quarter is Kannan Venkateshwar from Barclays.

As a reminder, we'll be making forward-looking statements and actual results may vary. turn Kannan me question. the let that, it for to first With

Kannan Venkateshwar

you, everyone. afternoon, and Thank good Spencer,

So we maybe, you. Spence, could start with off

is given pull despite first relatively it the or to and us. than by QX. more higher the a the guidance additions forward that Just relative is feels you your quarter QX lower, in beat net and guidance, fact behind tends like large quarter during the effect amount, But the to the be less sequentially guidance beat

if us So the walk the thought a for you you that, be start. that to and guidance through good could just place would that help behind framework use the

Spencer Neumann

Well, you. to see Kannan. obviously, Happy sure, delayed. great Year, Yes, New

guided if paid adds context was number, it XX adds. So a in terms of saw. of you especially paid about record which net year the still we X for when net to guide, a QX in obviously, XXXX, all, first that's And think big million far you million by with of

know the that pull declaring don't we're that think through necessarily we're mentioned I you forward, I So yet.

is growth puts through of quarter, in calls guide that's we one a how factor from that XXXX. there's for in grow the but through meaningful kind us So, still every thinking

business. so that's uncertainty important, terms trying the of more of growth forecast uniquely not in This of There's So Kannan, broadly, it's obviously hammock bit much probably one parts the but to there's also still during And a life, in just of then more just times, time. now. for that a of this forward pull the most challenging is right just little just but [ph] difficult XXXX. in early so trajectory

And for linear that's big we've counterbalancing through that what that So ever it's streaming to thing the done at is accelerated us to we're it's shift forecast more COVID maybe from same time, is one that uncertain trying than entertainment. But has that. seen.

very growth is what short-term seeing least ever. and right underlying strong at There's trajectory long-term the still as in just guide. as more that's uncertainty metrics and but noise growth So QX strong the you're now,

Kannan Venkateshwar

to from just But Okay. full one a tough been XXXX. X pull think was there's And terms look things growth a of at And indicated has of think if about to guys million comps million. into lot the what million debate of million meant guess 'XX cadence, X actually forward in I XXXX versus I you obviously potentially also I that a year X X you the you by perspective.

in a intact less that comment guidance million could So contextualize the year. pull you XX million read or the 'XX? to X X if we should you QX million given XXXX, subs to for that typically framework a more forward just Is in XX more into context as do of million or

Spencer Neumann

I'll as full we're Unfortunately, look, not Other this going a Kannan, Well, take well. provide guide. one. can year jump to in

ago. was better But those returned It's in right. as let COVID Just that. Retention all It's very it longer bankable, number, as uncertainty enough next growth said, We worth, not so next in sure do a up is XX business. I from Hopefully, than is good that What to strong. growth regions. kind historical project alone term there's XX is about, can feel trends. provide to see you seen Acquisition it'd the we year-over-year be it region hard would plus much talked but of that predict. it's as the impossible months. the days, year would we a But about, us a trajectory, I'm you've out be but we it's peak up is bit levels, of be the in pointed or minus it every is world. viewing

So metrics strong on precision business, don't to a false but I the XX-month provide target. in underlying are the want

Kannan Venkateshwar

of where thing keep was a but growth, if even thought the on could despite of And saturated. regions. of other The price accelerating to touch than seems to XXXX the until course, seemed is one despite is UCAN most you the guys growth COVID that saturated, And more the increases, us slower you which stood it. market Got couple impressive. be, being which not then the QX quarter, out despite of region, benefit have market during

about and useful. So you're some the if in that these of might these talk seeing, trends, what underlying trends is some of you could markets which be just driving

Spencer Neumann

or go Okay. to go? me again, want Kannan. want else go I'll to someone You

But is similar I members our to of more think the and we're the pretty bit Every story our of around is are different. similar of variety seeing COVID. great viewing in pre-COVID little content the more are experiences a trends and of is country post have is members. terms world, what Obviously, world. kind pretty that to similar. similar that viewing throughout the we're types the story offering and we our content But

the years net our our an seeing growing about year. X as to adds you million we’re there but one you our paid along everywhere. look Like a and America million mature growth content over we've you example, been of the markets, maturation, in X few are more certain just countries past we're market steadily further where As world know, pick around Latin fit and

UCAN we're still As you roughly penetrated we're growing. market, mentioned, in and XX% kind of

around still share pay small of and TV of most very penetration even markets share just viewing. we're in a small the world So

trying a markets, and So we just every lot of got think a day. all we've get little better in headroom to these we’re

Reed Hastings

under the of take is we're XX% most viewing penetrated time Netflix. still our market, being U.S. television you if And

U.S. viewing with would and we we've lot incredible subscribers in content. an have lot But earn of service we got a again, here the incredible So that more like to still a time

Kannan Venkateshwar

discussion, but last way -- the we'll of this and get and And get of interesting maybe one more Spence, the financial part out into question the

Spencer Neumann

that Kannan. take offense comment, I to last

Kannan Venkateshwar

this flow buyback guidance cash indicated the thing the cash quarter and new one flow is initially But your you what than is the guidance. better obviously which in guidance and letter is guys the

cash about be an could allocation leverage buyback and versus capital gross talk And frame you other So opportunities. helpful for why target discussion? potentially a So it absolute of get to using would to the instead maybe debt context. the use number also buybacks that

Spencer Neumann

unchanged, balance can, about our to have Passed positive in to big that Yes, we a terms To we're sure. we mark Thanks. our return was the fund where forward. free cash are as now stewards from million We're the corner breakeven about, shareholders. which cash a XXXX with excess or milestone flow a be going capital on capital remains we and our perspective talked this approach, allocation for to we talked cash we sheet, we point in calls, kind of our are for to turning self cash of before where super the bit proud of member the and the then of value internally And to projecting going try $X what But milestone to of and flow be shareholders. the billion us? thereafter, maximizing ability want XXX bigger us. our of cash growth think believe disciplined next we that's pretty is and to chapter turned that for do flow free philosophy we things a this

of to we aggressively put access it there's about we and mentioned, of really premium that, But cash. in that to the as we letter, beyond share $XX that's going gross continue as won't to excess up to to maintain invest maintain, beyond program. to -- so have excess then We'll debt debt markets a shareholders lot come whole you a into $XX we'll growth say, build on really opportunities just as bunch we buyback said we but familiarity going billion And a sheet. cash, the billion sheet about on that's see. through it, first. a the So to beyond should balance balance of flexibility, we're science say you we that. And if And return not need that, the always we

Kannan Venkateshwar

if many Reed to you on the This to streaming and just unfair we others a for could template And to may question pivot ways little Ted, bit created be in Okay. because feel a competition. question Disney's a lot work of feels are is they numbers up, get Netflix it But has putting to and success given like almost comparable kind to recent potential harder and scale. the underachieving replicate. honest, to versus its

why are the and get reasons numbers So for any there why benchmark there? a company not the Netflix Disney can’t are

Reed Hastings

-- Underachieving, Kannan

Kannan Venkateshwar

it frame to had I that way. sorry I’m

Reed Hastings

our being XX%. the return XX earnings is which years over annualized to of bottom return the In

And great. stories, more under on interested great shows pivot that's and content has stories. done. for an that. in if for an Disney impressive it's more what more does they're to to Look, of do pay execution some the taking members and that for incredible hungry so willing because It's Disney insurgent, super that's great incumbent have we'll So are performance, it

And content fired about the about gets world animation, them. that by Disney great movie and competing going our see. them show, and increasing catching show We'll family we're by maybe eventually membership, Netflix so in our for up and increasing passing budget it up us to movie be really it’s are fired

to to on like Ted, in We want lead have see I soon. that? don't and Bridgerton entertainment, to follow stimulating, you a up anytime catch Disney long which it’s just them going so you're go way our to general maintaining on think

Ted Sarandos

launches think 'XX to for anticipated turns I favorite I to have when get it enormously film. think competitive is tremendously of said what more are favorite terms, encouraging. big make launching to us always programming our have very both you you do entertainment Day people about ever. going said everybody's and great does to think and to willing is services the think like that -- dynamic. talk it. fact XXXX do Wonder I which be a goal subscription content, to Reed the No, people film biggest is appetites people We've to and of Netflix kinds different Soul, that And competitive I pay that in will super show, where it one and people try And for will on debuting our about everybody's they're think you their Christmas out too what Woman point supplement Other that healthy all more is

Spencer Wang

sorry, go Kannan And I could if ahead. –

GregPeters

there's virtuous have which think of add number fuel But create get the the more I of cycle but content to look well, membership if a more. revenue as just course that that flowing the that useful we it from subscribers, to basically could and it's at to lens also is I lens, of

Spencer Wang

thing think not away anything take it's I too sort their done at Kannan, been weeds million were as amazing all of the on the to think And a what XX and I'm but to that, happy a and because we customer add myself, not the I I of only from all in to Disney's which paid different a service. get other recognize of would subscribers XX% Hotstar, numbers bit

the to double. our So million XX is XX double ARPU is or and roughly actually more than closer million

XX So last we alone. added to million close year

factor from the those when penetration in globally, think dynamics level higher about think you performance. I feel on of good we're a that very So we coming fact the I

Ted Sarandos

to I us So chest pound try just you took the some more? bait. Can the get

Kannan Venkateshwar

are meant be up there pie see also Disney new this other this this as have -- distribution in future. guess attempted. provocative, ways or is But say the this coming being to general, think guess you models in follow that to I have to and or telecom are bit of a will these but it turned even was my all companies It because lead kinds on be for are a expands launches in new Discovery about the you're a some to lot started streaming in to when a that topic. all new happening, going out quite Greg And to permutations normal. And

growth So that new 'XX, when the or in streaming more you the opportunity of try about coming distribution think accelerate of streaming because in in an course out ways? avenues to over growth some some does services provide way

Greg Peters

world degree certainly seeing services. consumers are think I first really for this has a We're that process. impetus because tailwind the the And shift right. move is big I accelerated that to more big macro around us, these more think and just is we you're global some and of aware pandemic to have who even bit the

and more activity there. out intention, have We more more

how when and can colleagues, do next of is us, their they're we stimulus the have really family, We how that constantly engine seeking more? more for just and innovative is talk to great motivates really accelerate friends, up really the great how footprint, are is, that our improve what's the service and that's key how about signed we we folks because pushing amazing growth their our to be distribution do around access a we how to viewing have growth, our subscribers members satisfy And titles the edges can ultimate how that wildly also, they and experience round they sign of there that what the up. those their

the we'll as way. in many And edges. pushing be up to grow. innovative that keep we'll So we with seek We creative come ideas can to

Kannan Venkateshwar

right. And extending during a the ran All topic, on experiments I that of guess you quarter. interesting couple

was India in and for think in I tried linear free France format. weekend Netflix the have a you

are a talk successful So experiments? could expand the other these regions? to And enough from these about to you little bit learnings

Greg Peters

Yes.

a see difficult now And of we which this tactic go analyzing to more lot of interest be members leverageable. in then come We millions actually whole think access that had your to entertained might it for of learning still obviously through evident primary other seeking based be what again, leverage So working of that details people improve a Netflix. on into And part think other the it, was the Netflix we service about try there interest think consumers point, we very translates specific incremental StreamFest a to period And India, how will there's inform growth. how we we on we're what through that how the to India places on of had to we amongst or And how I ways. variety is the through that in service. do that. XX-hour in tactic the sustained

TV sometimes or animation or Sometimes or to up and not sure really they're they're they want sometimes looking a scripted watch. they movie or what for and a show show unscripted,

new and state. of had to try innovative try so members the to opportunity mechanisms And our we've and sort help be particular that in

of linear unclear out. that, work the isn't going example how one there's feed to So it's that's still

we're our So new want that's that that it's to really in can is we're that's for to members just an a I entirely, us example think and to working globally, basically now indicate us quite pick just roll one well feature play. still testing And out for But for of a at looking browsing skip been one. title that where great better instantly even that we've going because that we'll and they them mechanism worked button click members to situation. a

Reed Hastings

better? it going to Greg, with you are going we to are call something I'm feeling lucky up or come

Greg Peters

We're than so going with better to come up for that, this. standby something

see You'll it rolls when out. it

Kannan Venkateshwar

years. And the billion on more, Asia $X been little billion revenues over a you last has add able in that to bit Greg, following $X just up the to mentioned few so, Netflix

ARPU of we as course revenue right of As framework billion also, that growth? your about email the lower, becomes is should region $X region a and in reliance think region the being And growth how forward? think going that growth bigger much because revenue on for that about billion way that to increases, to $X in

Greg Peters

is way X the moves those we Yes. piece. specifically think annual that that how that and unprecedented billion continue and We're proud the and But the billion point, this of to the accessibility are what around moves and seeing growth we ways sort our tests we have expand to we is revenue but different industry. to do well entertainment aspirations we're that in we to what is test, some that framework sustained find grow to of to of your growth, as our certainly we tradeoffs revenue. all subscriber as And really to we growing can make improve oftentimes, X of really we how those evaluate means ASPs, for assess between revenue Netflix at service. optimization And doing the which

fuel try as always we and going And to continue to to basically that growth that and lens so that's as the we get revenue to we're much can. use

Spencer Neumann

to revenue just that's of growth kind second increase from just billion Kannan, X is so ago you to absolute revenue two business APAC guidance about the add frankly and in the $X acceleration largest past I’ll for that, in region year-over-year, our years our was happening this contributor see And the to just basis, on an growing. the in year, total billion over year QX, it's about quarter, this that XX%

Kannan Venkateshwar

so When region, diversity and of you obviously terms region very APAC sensitivity and the and has of the think forth. that languages is price kind about region so different in on the

So when mobile-only trying people are of of can the from plan to state then other either a things that? or of to less you product steady present do or or a there you model region, that accelerate potentially there and terms pricing more trying the approach kind particular upgrade is in

Greg Peters

sort you different you're to by that ability multilingual, if where a languages there's like one that our and do they're one content are they which simple things scenarios. us satisfy thing browsing, we're completely in when at yourself trick great improving need to result in even but product we in know the will different it's can terms experience all tell really ways There's There we and not of want the make just our you're the us looking of members go can we sort XXX scenario language, of mentioned members for in that a current just it's or region, and of to what that these maybe successful things doesn't And basically and constantly it's or be. the members one the choices. when about

we you of service need you on so from how that's up. and more to more you're small what where think that members household, to that in expand more improve and members. to accessible we know a it more multi-generational a for out the can the we one the to that have like partnerships in we're those and of the shift places working goes and of sign just about, sudden payments what effective methods add product we we easier those of make and and on find make experience and titles be immediate more example what effective, present that But know satisfying might If want to all like languages constantly and and then

looking of tons things at. there's So that we're

Kannan Venkateshwar

underachievement, an of of area year. Ted, movies a overachievement instead speaking And Okay. of in XX

So many the now ways. are guys industry in you

top studios do movies XX year. the think about potentially five I a

year. are guys You doing XX a

So that much? judge do at what or you are point is too you juggling, you are this returns How And balance? on this how how evaluating investment?

Ted Sarandos

than it, more likely about what XX. how is about That's talk to and trailer. in able just you when tastes release exciting about think that think last diverse people's that are. we were you And It's

what about think watch a a It just appetite You is. one the to isn't movie week.

that, larger grow we're but there's think doing scale that, and of to today. plenty I room much

filmmakers about with just expand do audience the Zack appetite will making they when well scale So and movie incredibly on diverse people a like films that Antoine Campion evolution -- could global thinking week, we're to on could that a have And and taste. do at phone. I Fuqua grow home serving could Snyder, Netflix, do Gadot Leonardo an for and it they Jane stars Meryl Gal to watch at Adam about movie movie, enormous so screen, think and DiCaprio continue like it McKay, that's Streep a they and talking because their beyond and it or a that big

one that two three. already many it's week or is So weeks, a --

the region hugely And of in that them are some for. created they're impactful

very them Korea, we for of from the year very global, a world. very, with hit like which become us became around some last saw And big #Alive

Kannan Venkateshwar

basis? that content create content. over titles, the to doing you're for some returns doing, kind volumes at you that finance this because when a the make sense with for And downside you studios on this do to And on with innovated financial cost plus and models kind as of past structure content to is a the respect lower that when does a plus leads in it you're a doing really of cost startup? versus no is there scale to kind risk this the these you a ways creation model of relative you deficit output make the there time, essentially were in originals When

Ted Sarandos

double the I ambition studio in return and and this for if it scope it that every barely it at the versus return, We're it this titles that to and a scale has I producers hundreds think of this we execution of is of doing And can been encouraging on the a some difficult day-out model for handful year it enormous think projects, that do produce does. both really continuing up in. of the just up think seeing And great make make the model. of even, about scale pretty support you wind otherwise titles kind embrace the to to projects are to in of that day-in break the more the the fact and the than filmmakers relative volume projects cases financial projects. for

Kannan Venkateshwar

a the Netflix, given distribution essentially more in revenue volumes just of that some to for significant in become movies tap this the essentially releases stream windows create of does does become new the now office channel patterns shift for doing point? a a window? very across acceptable, you're And also been but industry, at COVID, new or you? does with If shorter release not and that for possible the there's at it box a ways become movies, on on And some [indiscernible] wider short you kind releases because

Ted Sarandos

at this We've We've theaters. potentially. Kannan, in never being movies before. any issue had looked with

commit window to to theaters. get exclusivity That's been to access very any to of biggest the has you Our this that biggest issue been had long challenge.

changed seeing home, during that with with lot and sticks. is things human the not the and have to experience which think out becoming going films, our choice the in to are strangers norm fantastic. we'll those love much a certainly, it show to different So movie out between and it theaters, It's COVID easier seeing our But to I'd there's behavior, collapse a business. to seeing just behavior, going But to how that it's access we'd theater core and at associated time. windows to I consumers able make or over very consumer going a if have see films be and

Reed Hastings

and clean Hopefully, COVID then Brothers with the Max also numbers on wait is the that COVID simultaneous, then for Warner of will post that film, half for path online people their theaters. go good year, second theaters get on both like sort COVID, simultaneously and have both in and But what films. move, was to of HBO really the to set the that. to a the is watch helps a significant streaming, we'll and see read post And we of premiered in they're to

Ted Sarandos

Yes.

So what been what this seeing trying films size. though making you're at since for exactly we've of today these years is a to do couple

Kannan Venkateshwar

attractive for not But an premium either is form some model movie Netflix, is coin this if your to. why distribution of is for other studio wanted they release efficient the channel the one Why on side most now, in scale not channels an Netflix, that distribution can model? a get a attractive is of VOD or other that the this a given to guess I you? model of

Ted Sarandos

consumers for saying not this isn't. in and business. most for been it is We're saying our one own terms the -- we're has both attractive What that of model

Greg Peters

sort believe really And kind Kannan, different from that a to I maybe world. approach. the a I that to of payments, the add a would is model, powerful really, really transactional alluded of around free, of orientation, consumer we no consumers satisfying simplicity really, our and think really additional you one subscription say

that. keep And so to want we emphasizing

Ted Sarandos

a more the about opens to figure be people great challenge think they for watch. up to interestingly to things what about adventurous one the consumers of models, much That's I out subscription it

of consumer a mostly notions by So about think can because not those trends, business doesn't, you what I throw established preconceived lot and what works trends. by out are

and say, minutes excited is all XX happens people it this Lupin they And I what like but I think subscription foreign when later, I play. to don't I've watch so my included television. sudden it's hey, super foreign see show [ph] heard language television And and in called language a of push of I'm

beautifully anywhere it the language entertainment. scale evolution. So by to Netflix, it another get And it Bong -- you Joon-ho stories can to Oscars we're by audiences seeing already one subtitles it's watching of inch a whole really to the from at incredible great over dubs the can so said in enjoy have the watch everywhere that having incredible original wall inch the world one the watch wall in world is you and or in world with on that or track. that

Kannan Venkateshwar

because $XX slate content as watching pay Netflix. family when guess a you're $XX, I the you movie a for of or pricing essentially that movie also of it you you And of putting have this power and kind instead for volume kind up, also gives for a more lot

goes of in of power So the kind your pricing implicitly product. up environment because this

Ted Sarandos

subscription. another So we're XX Every the consumer. on increasing that increasing of value for increasing value watching you're Netflix, the or get proposition value of time we the minutes

you're love it's by the that are increasing do push we think push -- I options, And when also what the you're going play, you to So increasing you play. going likeliness see. to

Reed Hastings

And it’s they that experience go still like Kannan, of out you out that's dinner. differently to as just but that they of most consumers different. people cook cheaply, realistically think just go could out still an and home see just entertainment, And

saying and think unlimited members direct and amount of was watch to very in back as in Borderland that direct try for as the don't pump. to of they get that Ted love be think or Alice don't and Lupin. our So experimental is what a to But what the an low their try taste, to they price

and these able unique are to So interconnected viewing to of it's really -- all kind incredible create a things be experience.

Kannan Venkateshwar

environment about ARPU to guess pie the up instead limited, basically widely. it, you there way should spread the we factors, accelerate coming could coming somewhere increase, could to engagement is essentially consumer I you at pricing to these much have is competition to the on then years, which the you your power are accelerate expect more in of two see? to to other In continue of in -- product pricing think and these have least the environment. of think consumers have about two when this but other One Which should go wallets out ways Western side power else television. words, So and read itself that or pricing in so be and is of of share wallet dynamics more say when One that markets? is growth total

Greg Peters

sort whether new that's I we users, our grow. show; it's would in of and the wallet have to think And global before. our of are exciting share extremely now room that so is share more competition Papel, feel to like and de shows really broad, happened about for share bringing of from of languages or foreign of and now of we time we say much it as countries Lupin, language see creation Casa that of dimensions never becoming delight, value hits share you entertainment, set think like Yes. attention,

that's stay And to just So see value where we really that focused. creation. kind that's exciting super of

what's we And grow that engage product value can members, think think but great experiences. business then predict if way, them, that delight that just tightly to we well, we incremental for great step more So future we're our more tightly, trying on them, and about not content, think disciplined we trying our the to turn. stay next do where in create more will

Reed Hastings

will and to cautious pretty pretty been cautious. continue we've be Kannan,

revenue what's So the what's moved member? maybe years Wang, it -- can remember last from? happened average the What’s up Spencer you per with three

Spencer Wang

Yes.

$XX, north sort of just And than know too. mind, this, slightly of So per in had less $X.XX up think bear we time you per membership significant around that to the of moved course I quarter over last Kannan, $XX. from so headwinds in month but FX it's

course, So think for we've seen that's so you. framework I a helpful leap that, of that

Reed Hastings

so for three about provide pretty years, and to XX% well it's Yes, value. working us cautious incredible over it's

Greg Peters

entertainment We value. thinking maybe remain we're to just just is of about incredible it. think in stating We cautious way entertainment that value. another an incredible want do Yes,

Ted Sarandos

value. draw days Midnight Kai. couple couple Day you a back to Lupin of days that, days had of And Pieces the that been phenomenal. after way and And you’ve of we after But the of been really It's unprecedented. that front Cobra we rhythm think before films people days and a that, And that were keeping I’d in Woman. definition and couple And we But where has are had think releases pace that the of has that, of consumer up. Yes, Sky. that of numbers I a seen a have [indiscernible]. of enjoyed after series the couple we a you Christmas had had these we is I the

Spencer Neumann

our for what the we price We in and And points, quarter. announced in recent that, in to continuing UK but variety delivering nicely increases we're data of fourth the this we're and just Kannan, letter, the we think had in value referenced to the grown U.S. point through increase members. December in the because we've the I

Kannan Venkateshwar

academic these demand itself, have you've you for if a the So churn or on seen of And very just front, for of to are seen up, at yet cohort some from price guys which in But us? start that so a taken price at still you've is potentially be I point up on maybe certain terms you you? as useful away guess be factors go across which that might function you about what or level, different essentially, in the kick framework far elasticity there's talk could and far we of as regions behavior, potentially a that something you the pricing that means changes. higher when higher But elasticity seems price this. taking research

Greg Peters

than members I more are us we academic perhaps rather perspective, have think we and signs from it And that are and telling at and is operationally for look it's that of that practically value. signals almost that sort looking reversing it, which Yes. more more essentially added we really our

we've those churn and characteristics, about things looking with service. saying, value that the and acquisition, really think you are are in the So service added key that retention basically to engagement the more okay, for we're

the bit that keep it. Now those and can time to ask we adding right a and reinvest members go more pay little it's it to to back so them

iterative feel way that our that we sort it's So have. really of forward kind of orientation

Kannan Venkateshwar

different slightly Board creating think obviously, region. right, is And to I'm added opportunity? started a we pronouncing about to not you in Masiyiwa, Board. we've this an a Pivoting the the Disney past, Got as Africa the topic, Strive content but it. that guys I discussed region And hope How a in Is this this lot the of pretty interesting. appointment is next should focus?

Reed Hastings

board an for marketing grow on not be to he's consultant know well. is he's which Strive although coming a as But increasingly is He's important with how businesses, to it dealing large a a have. Well, to global board of skill for about he subscription does extremely He's governments, sophisticated we us Africa, enormously done. build voice member. which

world of him the and very advocate think of great Europe global for knows reasonably So a He as also rest well. us. the well

content of We're it's has of it's think broadening our more a not specifically. It’s doing global -- role membership. And our I we've been that. a board Africa So We're continuation potential. Strive ton there. and membership growing again,

Kannan Venkateshwar

in looking just majors. were of there might others of a the one essentially transaction, will as the streaming the and have world, chime of sure which And well. there's Southeast for Chinese I'm the in be rest Spencer at couple this of some lot been by Internet But small Asia, and you a services acquired been

Crunchyroll. of of acquisition course, did the Sony,

could passed really scale obviously have assets, any not guys show it interesting but or you which been there's potentially interest these on in did So faster, you assets. helped

or would care interesting? as world of assets about could us guys assets are not through more it's these you assets what like So you why kind think help

Spencer Wang

respect Kannan, to many subscribe our Sure. different with the question, multiple other view streaming to To is services. services, answer people first

doesn't acquiring sort that earning one from rather really M&A on organically subscription for person help just of their members just and we stay doing each than focused So to some another deal. us and capturing want

other So specifically it around great like in, we and bolster two into your are movies. in interested point hopefully terms entertainment our we great assets turn us that inclusive and help can is that which business, core things what TV of one. can content property intellectual that's question of Point shows of sort is largely things around

Ted Sarandos

the add to team around things like, used one saying so in ago, to that been anime. we've wrap builders, is the business then we'll We're largest not of And I world. someday VP I’d of someday by the historically, be buyers. the big, we'll potential years their a that have anime producers now. of get the head just of scale try And to

of you assets, look things what you were So kind like those and about they're assets, IP now it's think you at not distribution really those when primarily assets.

programming, a we're big like the So over been that's our anime, film, budget features, with – and unscripted years with with our with versus acquiring. animated approach building where our we've taking couple original

Spencer Wang

time Kannan, have one please. question for we more

Kannan Venkateshwar

things done comes when as engagement this you the to services do have competition? the does in competitive Spencer, feel instead at maybe And to with if had But outlook final spun -- past And on from as of real more perceive guys regrets or not but company, being outside Ted, you've it also landscape, instance sorry, from that consumers? respect Roku of the I’ll one is like guys mentioned like in the any driver this ask it come mind question the out? what longer the for you is look in which you of have well things an could do? streaming for was chime business there you you free that to something terms and one. did obviously it Is as part Fortnite, term

Reed Hastings

does to see on how going he this I’m one.

Spencer Wang

to incredibly as mentioned stab wide. and then it we pass the or at I'll could Reed, think is I earlier, Ted. large Greg But a take over it, look, Greg competitive set

grow lot It’s work of do more I to a so time have more screen and continue to share members. hopefully we that to to have valuable become we our think small that And today. of

I question to here anything that is have and Greg, here think was, I've only five much been years there half Ted, the other regret? of much, we who part and of longer. a been Reed your compared sort

is probably So I of window smaller. think my regret

out think right don't that there's I anything to jumps now. So that mind

Reed Hastings

could Spencer's he regret when is joining earlier have. years not three

Spencer Wang

correct. is That

Reed Hastings

we that fantastic is unlikely it and have Anthony the Roku think we've they would What executed his had they that if team have it's been I Materially, inside, kept success very have. to and And original done us has their enormous and programming on a enormous in just then energy global. streaming it become was focus leader task taken and for an side. then both

success, but front. regrets that on their we’re no So for happy

Kannan Venkateshwar

Got it.

Ted Sarandos

back to hard to think with millions regret. people our the look with bringing of it's I world joy around of and with return we're hours their would hundreds shareholders, the much hours of to and

Reed Hastings

for back of we the Kannan. year, first to expense. you, House one because piecemeal go Cards Here’s a and global We that not had buying in regret license to extraordinary

Kannan Venkateshwar

to end That's a I good guess. note on

Reed Hastings

and Kannan, you, and another shareholders you you thank Thank forward to in all to talking of our to look quarter.

Kannan Venkateshwar

Thanks, guys.

Ted Sarandos

Happy New Year.

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