NFLX - Earnings call transcript Q2 2024

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Spencer Wang

Welcome to the Netflix Q2 2024 Earnings Interview. I'm Spencer Wang, VP of Finance, IR and Corporate Development.

Joining me today are Co-CEOs, Ted Sarandos and Greg Peters; and CFO, Spence Neumann.

As a reminder, we'll be making forward-looking statements, and actual results may vary.

Spencer Wang

We'll now take questions from the sell-side community that have been submitted, and we'll begin with a set of questions on our Q2 results and our forecast.

on come question of Doug first JPMorgan. the our from results Anmuth So

asks, some on you churn Spence, can So Doug provide growth the and share revenue is perhaps color some drove color what in quarter? trending how on

Spencer Neumann

Spencer. business, and in was member growth. and strong across revenue Thanks, performance with good board, There pleased profit thanks, growth, sure. our We're Yes, momentum strong the Doug, performance QX. across the growth,

of outsized terms stronger say across kind retention In that's than all and that that quarter also the healthy and member acquisition, but the healthy, very stronger by net I'd churn, paid regions. was of growth little we driven in expected, quarter, in continued adds the primarily a

X member key factors In growth terms of that growth. of generally, kind there's drove probably

of impact content titles sharing sure we'll wide variety performance genres regions, There strong that. from positive about a our was and of and slate, some paid talk I'm across delivered continues. First, that more

and on to tougher organic growth said calls, at business our on ads better attractive healthy plan. business, we're for getting unpaid we're but including at in converting service terms we've least point entry value, it's the our better seeing better to continuing and in probably benefiting also and tease out. translating better clearly And in recent and point into the As set feature accounts. front, get that member We're that paid at also from of improvements price tougher

growth points of growth that and importantly, revenue and nice so up for and growth, more subscriber that healthy a profit revenue all X quarter were reported growth, together terms but in put it percentage margins was healthy you nice year-over-year. a XX% So quarter even driving

Spencer Wang

inflection paid Netflix has also of was that an India country more in adds market? is or #X noted feel QX? Do Spence. very point that the like Or you're a and Thanks, -- in in of more a and follow-up slate of growth you the second terms #X net content percent quarter. We about our in revenue on noted hitting that results. successful specific question Doug

Spencer Neumann

want take Ted, it? to do you

Theodore Sarandos

Yes. very world growth India's story around out think playing look, is that we similarly. the see Well, I a

content, look you them fit attract ability market the and at and with well. drives the retain is product So to what members as members monetize our

on SLB series series to the So ongoing India, been in most build. on in like and show, our going ambitious had India. of filmmakers took every the great on quarter it this Bhansali. and incredibly I this to directed brought feel biggest is what's celebrated We this in Heeramandi, Sanjay has it's drama screen one he and Leela episode, date Netflix,

and So thrill theatrical, immediately films members. on to of films, TV license top continue original our pay following that, window, the in films our our

thrilling our well. We in we we grow of We So members. It's we the improve grow audiences everywhere We And We plenty We think, long product the them keep well. grow as room revenue. as formula, pick I market engagement. same certainly India to fit. program there's go. there. improve our

Spencer Wang

Thank Ted. you,

Our next Jessica question margin, to results Ehrlich question Reif the operating Bank America. on relate and the of comes of from

margin of about should forward year? expansion the pace think For outperformance margin of drivers Spence, we how and going the the this

Spencer Neumann

think how with Thanks, trending we're obviously Jessica. it's we pleased expansion, Well, margin when about far. so

margins to is sustain each back, and revenue stepping of kind grow year. healthy growth focus, Our

been good we've delivering. feel about what we So

XX%, prior guide XX% As up of from we're you land see and and targeting now X operating in year kind the percentage points our of assuming up it's margin, income year-over-year, letter, we that's full there.

over But considerations. grow margins dollars, a period come. other year profit We've bounce bounce do committed year. absolute talked margin, each It years in around lot continue of a that exchange to look forward, year. time we as to we're around that extended profit could grow expansion, to could foreign and margin we because each or moves recent of in annual of amount that And to the about But it an room see quarters. of business for where

Spencer Wang

Spence. you, Thank

Our next Wells cash from it's question from comes Fargo, Steven and flow. Cahall free regarding

$X and free is So a of the this flow or spend there their is, guidance? cash cash year anything full has question raised Netflix not just free flow outlook cash change content in forward pull else impacting forecast that revenue your did but margin their is is approximately billion,

Spencer Neumann

it. take Nothing I'll that. impacting else

always we There's As flow spend, in for taxes. things terms you noted, timing cash expect sometimes of some as free of billion timing content of we've to uncertainty noted, the of continue $X year. approximately like

billion, So that that. $X but kind beyond no us approximately at now other read-through right holding of keeps

Spencer Wang

Spence. Thank you,

We of from big paid have is, so, sharing? on John if is question this? paid our direct mobile And sharing initiative? forward Hodulik you question paid have of how upside the from an which I'll The still moved to And have UBS, quarterly you on next opportunity do Greg. sharing

Gregory Peters

Spence perspective. we at a talk quarters as Yes. more now, the where paid point said gave we've on sharing. this long-term And sort from some a quarter's for already I'll of we're it performance. really commentary of operationalized about couple

see the the do a clear, we of those improvement for there. be our So some it's part part And experience. we see product the areas just to improve opportunities all about we And product standard we experience. still improvements as But significant of there. essentially think to have

think the prioritizing constantly based on all opportunities what those value. is we're we expected So

found up improvements delivered the sign-up you they a like last have flows, Netflix, a even of multiple that sign over flows And the a of incremental things is, or wide give couple which that have how when quarters on in to revenue those that working want just we've experience been decade, to over user sense we wins. just material for has consumer our for

them. we're We're improve going look we'll and opportunities. all business. to So to We'll for at improve members continue to iterate, going these the for things

as of constantly mechanism. this think we translation just value improving a And

by value continue spinning. can live So to we more and all to series. that's created in translate invest effectively into and film revenue teams got more we We games, that and keep flywheel that want we to so want take events, Bela's the

And households pricing if revenues more and effectively into that offering And of growth, quarter optimization, extra aren't drive levers of that X can mechanism it like allows on business. sign world and year. entertainment us It'll and of drive it that of, the through the keep each things XXX to our that we operates those more compound They'll translation really TV improving through currently those the other smart rest the value the improving members 'XX top more keep the up. value. business plan And drive growing beyond. to drives million-plus around also and member, ads get and

more as work improve decades constant doing So to of I the for we come. think to this are about

Spencer Wang

of advertising, Thank questions first Crockett you, now along Greg. point Spence. with we'll and I'll this move about Barton and a to question series start I'll us of Rosenblatt, to

You more say that on advertising both yet. of means clarity what is growth you not for a driver a little revenue 'XX that Can provide 'XX? "primary" and

Spencer Neumann

Thanks. Yes, sure.

we're pleased just rate just We've the about talk growing in scaling you into So ads a growing starting But stepping on The only nicely. of it with back, revenue growth, it ads. base primarily even very months portion to from letter. been think I'd of business. relatively off say We happens be how if reach. we're focused our ads, because XX about is that our of scaling small we're

that have time. just that to some of So primary subscription business takes revenue kind across impact the a primarily a for a been has long time,

have through growing through engagement, So revenue well over we're big on a us business. and for opportunity inventory, impact trajectory reach, to through multiyear profit scaling the that increasing represents and and a

to and Ads is service tool And profit really now improve in kind stepping back, about there. tool work doing our sustain revenue healthy of the good one growth. we across the board. to and our our our chest feel hard We're position ability more

year 'XX 'XX the drive and beyond. in finished we So growth strong into and

of We're in reach to we're 'XX becomes that in and talk every going into and that a connected meaningful it but in contributor. 'XX, said have time. share We're can what 'XX and small we just TV or small in and it small contributor measure. won't It's those the terms piece when of building. homes. a That's that's going be areas what a primary given even we've it ad get it grow hopefully, in then in of it beyond, across We're penetration where the is puzzle, engagement revenue be more it contributes. about is a all and market bigger of to we're TV We're it that is be primary doing. And meaningful board, of point share. And we lot. We small

Spencer Wang

and Stanley, Thank Swinburne on advertising you, this Spence. I Greg. direct Ben Morgan question to comes of will from follow-up A

Can areas advertising third-party that of are Looking scaling into opportunities talk to in and XXXX, ramp more and demand, efforts sales what key need improve challenges your to revenue programmatically? direct revenue? primarily leveraging about you sources bring the up to your the significantly

Gregory Peters

the threshold further member Yes. seen priority, so from our first that, progress that say Clearly, scaling to is goals on been but in attractiveness quickly more beyond build to we scale X are priority, we've to get base great there. of heavily to our XXXX. We've great our and represents from excited critical-scale is We've that. we're very news ads track on to all where for regard. And and years said times, been more our achieve that to then great many expect #X in focused ads a countries And we're we've we growth X ago that today. scale

shift capability. on our of there's growing sort X that So main And more to go-to-market that effectively here. our now is rapidly One fronts allows inventory. monetizing us of energy more

we're Netflix. that folks, effective a that to feedback from advertisers. big adding ways more we to heard giving ads we're It's component A advertisers. is our operation buy So capabilities big meet of of point folks, adding sales advertisers more building more

to processes going so cases, by for was expand of we're the that makes are item them their already in of systems, it demand just And number in sources integrated into a result easy for some that. and buy to to So as threshold buyers adding their that them a buy. that us,

a that then the other own better our our 'XX. unlocks our on big rest stack. user then mentioned tiers server and ads us and We're That launch Canada And and for for a to excited innovations this of are that technology growth the we markets year that ad building on product set is of members We we're the features. expect those experience of advertiser focused ads area now. better in of whole in sort

as incrementality ROAS, measurements, lot ROI, So relevance, all as this think in well things more thinking we we space about about that do the do want. targeting as capabilities a that how

in advertising is digital this is measurement, TV ability of creative really, which what terms what better has ultimately, than creative been well advertisers. the about the advertisements titles, format advertising, content, format, social we as And incredible bringing amazing to cases in to and an is think cetera, targeting next those about put about relevance, amazing et stories digital, conversation, that many for are impacting important is which as

of years to moving but work the work we're lots of forward got with. that do ahead. So line We've that's

Spencer Wang

likelihood ad-supported we the member ad-free half? consider price in the Thank you what are Would XX per given tiers viewing you, ad-supported raising time that below of arm the what's per month From drops Greg. ad-supported and second hours the CPMs on upfront an at Steven disclosed for account the Cahall, members, offset? as you pressures AVOD arm question of is, his think

Gregory Peters

Okay.

our viewing So per day you on plans. to from just across approximately by close per non-ads calculate perhaps what very see our that ads to here, plans similar reports. all plans of some That's globally the the is our engagement on member X hours our clarification engagement providing starting can we

are that roughly well. ads should members you our So think how as plan of as engaging

regard. of terms arm, racing currently, inventory, is, all that combination plus ads which fulfill we're because so in the we're essentially lagging increasing on amount ads subscription behind ads so of of arm, we've course, then And scaling and that of to revenue, rapidly, the the been

our our go but a both at currently, opportunity look non-ads us. as lower And arm. that is arm for ads a revenue obviously, So than we growth it's do

revenue our As scale accelerate as into represents to well. we that, that opportunity an growth

pricing we mentioned for tier you our about how price. We for think very to think tier. So non-ads about pricing similarly would ads

there. accessible worth that First it's That's entry lower. all access our having of are doing think market. noting an more means I we all, that's people because we a in price just great That they more thing love get ads amazing the that are we storytelling for to

is to are similar delivering members. the it's that the is looks churn we've going the the we in And think and about pay when our film, terms have to think this members about price, retention job signals how are spinning. to in just members, the that which ask more events the we amount our acquisition more games. find we'll raising that our amazing of that more keep got right non-ads We've moment we on, from we would increase coming, we to all to of But like, got what engagement, general, value flywheel it think bit that we series, of about in like pricing our a that context live context. then ads to And more in our

Spencer Wang

on us and from adtech Hodulik expect to tell adtech advertisers us initial UBS can anything the can costs about Thank update you What add you you from initiative? asks, with build? And do features update Greg. environment the you, provide with your feedback an on associated it? ad CTV on the John

Gregory Peters

Sure. tactical is excitement and that work immediate, more advertisers of to, to is to buy we're on able Netflix. There's about a responding being the very again, sort which we're ways and say lot advertisers primary provide doing. that one one, amongst the of I'd

heard So Netflix. a buy it them something demand be very improvement real from was those necessary to on to for either we able sources a point that them for advertisers it or was is clearly

we to for We have feedback those we'll personalization, over is today. So these we be of before: features relevancy, the today, so all negative of now, enthusiasm biggest the we that years, hear incrementality. there in increasing better building right would mentioned sure. ads get of all The want to that. measurement, next All things then us about beyond in lots that things lots several aren't place have those that, advertisers targeting for excitement place love I features

we we've gap of hard of can as possibly the closing got can. ahead as So and work building that those soon us we as quickly as

as asking ahead to us than will it's these come But for quite that things. go years build features, the there'll ahead advertisers building more that those be we that on about more frankly, us be we'll roster will doing. quite of to keep and go I be am excited certain And and

Spencer Wang

of LightShed. question Rich Greg. you, for next our Thank And is Ted from coming Greenfield

Spencer Neumann

it, unless did answer like. it, to of sorry you cost chime interrupt the so in, you, really can I we Spencer, if kind missed didn't thing I I miss

embedded All say suffice of Greg talked our terms what in margin of in investing about the business, to that in is guidance. all

the X and our billion math, year-to-date, for time we're year, make in expecting of kind back, step across $XX all we are be, track X% expenses north you where improvement. do So margin with to business points probably the up of of to the you expenses on the can we're our if still trade-offs deliver total business where percentage

ads, both innovation increase into again, like and as ads year to growth ads. revenue our live, into try run part while we that, trade-offs So makes investing into like for like to as expect games, well of this invest where, like as business next like drive year and smart the margins growth we owners, and product

Spencer Wang

Yes. Thanks, keeping us for Spence. Spence. honest, Thanks

a events Day to Or So is Netflix regular broad to then games Is platform Christmas are to create Greenfield of coming Ted next NFL business? stream sports high-profile a will on your agreement advertising bring need from build question recent you for robust spend entertainment cadence live who Partners. that of Rich signaling LightShed you your X onto across to content? of trying array live advertisers

Theodore Sarandos

back it live a minute. drives great love And things excitement. ton in We're and a ton those of engagement because a And It's drives it let valuable. and members Rich. a you, it, of up our two are me question. Thank very

it thing advertisers like reason: the good like engagement. too, is the the that the same excitement that, So they and and exact for

the Nadal tennis with we to TV drivers; with like, One tournament stars tennis, the entire with Formula here with ago, also, a Golf live aligned of Outrage you and and Alcaraz; generational for with got entertainment. of interest a everyone's company, PGA exclusive, on-demand comedy went also, live we've is X, is viewing stream in year live So Selective epic week we from biggest professional match that last I that still live Since titans then, a talk an groundbreaking Brady, surprise we've buzzy, our Williams; this going golf way. When love world, Tom perfectly to amazing of your live with when come, you who say movies, the episodes to shows launched are show signaled Rogan. Chris that Joe biggest for favorite special John Mulaney; show Netflix, Roast a Rock: yet. And Katt and live in

Chestnut hotdog-eating about. that We this between excited remarkably are match and have grudge Kobayashi people

match We November; great Tyson have boxing NFL Paul Jake Mike Christmas just between on this and X in and long-awaited X not Day, football games. but

a fast leads coverage would I a So WWE. it that ramp, of right into live weekly call and really

people So watching our about thrilled that and are excited excitement, it's thrilling about, that thrilled and about really too. that it, engaged thrilled advertisers are that we're we're

Spencer Wang

you, drive Rich becoming the has beholden do a leagues licensing Ted. spend thread part to how this needle you renewal? not at two Thank to to without surprisingly, advertising of sports question,

Theodore Sarandos

exactly X games, events, way from by the of and the to creates the with Steelers and Texans, of service, it's they're lot Chiefs games, really and be the necessarily great not and making on any Christmas but a one and events, both these it: excitement Ravens football. X it on we're real tonnage going the games, the and Netflix football great day games making a taking like doing actually one Well, NFL lot hopefully, league having of these Day

in we in expansion that economics be, how those can look that that was WWE deal, at which along see into solved for cost would think like case, as it lines, that you grow we when to if live years long we of and with want that be. viewing I can and and with XX and our So contemplate and as

automatic them But So big of you now. about that and we're model do I in sports there's in without It's do not when that an on, you offer matter the it's you're about when event a seasons. excited we're talking that difficult sports you them offer risk profit have between really entire can't this have our opportunity to building really league and think disconnect very profit. to right

love the of of storytelling kind And profitable we then in are with that, very beyond version sports.

can't storytelling on those games watch which if you just It So started is XX part on football that wait version of sports. for right can of Receiver Day, Christmas Netflix, you on now. July

Spencer Wang

Ted. you, Thank

comes Our next question question Venkateshwar engagement. our Barclays. from of Kannan regarding It's a

you to engagement are And health speak what Ted, seeing you So could Netflix? the at there? underlying

Theodore Sarandos

I intense, every we get. about well. Yes. I the call think Competition we this a of super for compete and time entertainment Look, view talked on bit is as last for second

engagement been those kind intensity that down. all. that, were owner who not it dive deep so at look paying as our into that competitive so not folks because a watching impacting there, how sharing we was isolate some the off impact and took could paid who households, and engagement beyond headwinds how and would by are We we impacted go that at of Remember, So our paid of Netflix we thought in taking folks also we're that's anticipated sharing. out always the service,

releasing steady But every of was steady at same engagement And the much from that segment's is holding was that as in but But up quarter. quarter forward in is not not going that so now now, habit actually what get year-on-year. we engagement just a that look a saw again, of to was that, coming engagement headwind metric that. I'm looking quarter new segment, we this the last

about we're time every And competition, growth. excited that think that. down headwinds a in all of that, sign even country very beating very the it's with healthy and XX% of beating TV So we're about down We operate of engagement in. still so we of

grow room of but engagement, pleased to fully So very our not still satisfied. but with lots

Spencer Wang

you, Thank Ted.

Morgan Stanley. comes Our Swinburne Ben from question of next

be YouTube. programming terms in future? product competitor verticals of What YouTube Your focus? to are entertainment programming as take you engagement tag try can one. is doing passive see home you kids from this more primary share where a you looks advantaged? for increasingly and to in and Greg there key team the this particularly like Ted, Are not and on Perhaps Or YouTube

Theodore Sarandos

Yes, sure.

Nielsen Looking see that leaders you for YouTube released the Netflix at just entertainment. data what there are the and June, clear is direct-to-consumer in

YouTube the because data. use and of represent U.S. have us in where only all TV streaming that's So the we the we And the XX% U.S. about to

focused on here we're time or what us is that total on really, either going TV focusing XX% So YouTube. to isn't other ourselves that of

it give, as keep So linear. of linear streaming TV to And expand, to of lot continuing the as grew there's as June, that's which both for we I did opportunity against so continues think executing us long in grow time share a to well.

each Now and we clearly we with their certain YouTube feed services attention. really with other do compete certainly time also segments But in of well. business, them compete our and for

So our most out nominations and We are talked this watched and shows nominated. award XXX came for slate about yesterday. of year the our just Emmy remember,

and kind on And popular behind-the-scenes trailers our teasers so are clips YouTube. of things and all and those incredibly

nicely. way, we of other each feed pretty So kind in that

don't add anything? Greg, to if I you want know

Gregory Peters

Sure.

that important who share want the both life. important spectacle amazing differentiated well and also stories can movies TV bringing it's consumers for important in note fulfills creators think those who to shows I an risk want need inherent Netflix and an in that's partners as that as need really for to

you about create Banks, Heartstopper, Stranger Things or fandom like shows and these hue amazing and with especially think younger Wednesday, shows audiences. So Outer

that kind YouTube's how within be bet big not happen it's to really one of And possible generation. model. would it's hard So and just creative imagine

confident we that our for for point, our well operating and it well competitive works And is very So generate our It significant for also to Ted's works helps works. model us business works and it consumers, there. margin. creators, well out it feel

Spencer Wang

and Ted Thank Greg. you,

on Do technology appeared experience. from CTO, podcast versus she from where that impact to of improve relative is the comes a exploring question the to you AI Stone, more you how about improving discovery think integrate side? creation recently discovery impact Maria think next engagement content or a Netflix said member on potential Netflix' How that of the do could have Ripps the Elizabeth content? generative into on platform Canaccord. Our

Greg, for over you this one. to

Gregory Peters

We've want Yes. been has further. find moment. it's even levels. We similar key and ML, amazing AI think that to improve many at technologies, make to that improve worth tremendous perfect using for and and it just experience more discovery right, drive through improvements. easier in AI potential all people them stacks, our our the I it's recommendations to success that's think an engagement quality We story for those to for generative But years the even to discovery systems that also noting

value stories. Ted, great great for it's great of of great that live all unlock add that want movies, TV helps games, all those improving and it's it's recommendation system it's events, shows, something? you great So a constantly and to

Theodore Sarandos

the on and great And creators back technology great, for build tell if great can better that's in generate about hand question AI see with I one years which is obviously. over predict how say to AI way I the creator tools, to going begs it a think that great set hard impact creative to is this, a of Yes, thing XXX But sure, would going forward, to entertainment, big of you businesses. entertainment work hand stories. you great look

cheaper, people from in can didn't in animation. animation hand-drawn than move got look work animation. the ever Animation to get better further history. it than today And in You more no CG

there's cheaper. XX% XX% is So it it a I'm and pretty that better bigger better business than business making a content making sure in

the It's much other budgets plot in chemistry all the don't in all the but probably saying that the about and they connect. and I actors. not of about audiences think plot, about the surprise they with movies, win connecting say So I'd in it. mostly that those remember, twist, care I the It's and technology I'm don't the storytelling. things. even when arguably, things, they beauty these maybe largely think they the the shows And writing. the deliver audience to of care And notice not with It's

looking is to So connect. my point they're

have see to experimenting a There's They're of and we the a useful of producers with it excited of AI storytelling. on today. But a telling tool any lot predictions on focus filmmakers be. So anybody. how to can super about our And the how can lot meaningful we unchanged, that means great quality what goal is for remains before we stories. develops it which got make

Spencer Wang

of new page? you, now are Greg. We opportunity Ted areas question Ben said And regarding the biggest from dimensionalize from you Swinburne Thank and can the with in decade, this the is, a for product. a which question meaningful. the Greg have a update primary you're home You improvement that sounds targeting is What this?

Gregory Peters

page that hard Yes. It's benefit new how to will know derive. exactly moment much at this home

about trying that and deliver what of structure it's pain entertainment lot in are more less in the it's to we offering. points, we're the allows us that worth does. And that now we than about of structure more creating improvements getting diversity the are think of is this to going current terms advance it's solve, freely initially, the are noting increase a evolve I but a to that what to

well film series a increasingly, one-off which events roast, we've live now So was a repeating, live that been games make to that have of access sure and service. to experience increasingly way like as consistent WWE, our we sort of event of live at amazing period into we Brady demand It's adding want time, into the have easy we're but incredible, events It's for. an like it. promoting fans that create those that and which are to it's events for things. We're long but

and is promoting found and we another to allow to one we those. type what we're in of that us terms flexibly how entertainment of go connecting So from to create structures content need

that a we things different So like there's users same for could moments. that to that. cruising and even afternoon There's jobs want be and night versus movie And to that want the time. in be to we episode you're increasingly we're experience family that on things doing, you choosing That exactly next like Sunday through. our right the coming experience maybe series recognize just you're Thursday different also want currently great late would the discovery for of when into the home type, provide in content get

that want we to it's of So flexibility provide. kind

decade, that trying revenue. we're terms old will lead as and will new retention engagement, users to structure set for is that us But a material of that the then which first mostly, iterative this expectation repetitive up journey did into step again, to deliver, in benefits and Our to allow us and long structure that. for be take multiple a

Theodore Sarandos

technical is less too, beautiful. the UI And Greg,

Gregory Peters

we go. We good. well. like Beauty beauty There is as

Theodore Sarandos

It is. is. It really

Spencer Wang

you. Thank

Next question the Basic in the how your of a markets? early Oppenheimer. of Jason from out Helfstein results tier selling does success is that in And to handful back have tie phasing from been ads? What

Greg, would you want to take that one?

Gregory Peters

Sure.

times us test for it we and then energy multiple and a it lot this product of out then scale migration. make a in that how roll roll further. right seen or doing we we members you've our we good do is on there job spent out experience it the before, we even As we if And do did whatever let it changes tell goes us see and we iterations and not. before We what

Premium typically When members Standard had of speak here includes got them And well. those better going. things out. We've X. entertainment noting downloads. we've in it's our definition. our go the think ads. a X we offering I tremendous of course, how terms a move Essentially, that can members. experience, value. just well, to like, experience, course, who performance, we very migration, that for as change streams in ourselves. price, think the the that's it higher it at $X.XX United I'll worth And for ad-free a And our an we're roll feel confidence with let for and providing France, We we in of States, so of got plans all U.S. And represents actions indicator it's or that that versus then ads lower strong got choose don't want in this We've And a forward they,

Spencer Wang

Greg. you, Thank

from gaming Sheridan and question any Can gaming ability on engagement The and initiative your scale Eric to from gaming. regarding Sachs. comes efforts? Goldman is you question provide your user your update Next

Gregory Peters

growth a close billion current model. including and which revenue, ex in progress we're participating our and the targets. seen. initiative, we're for not We're years XXXX, we met those happy we've in good and engagement. to We've almost in our growth and $XXX is more aggressive that 'XX. 'XX set engagement looking big into ourselves in X And we Games and And in, China we've Sure. many market. In had engagement 'XX, gaming set ad exceeded getting we've aggressive that cases. It's goals our growth Russia, tripled with pretty even those, aren't

business the the our scale, engagement at overall that that noting it's worth But level spend is And that, small. business impact in worth small. also probably with noting also And growth games our still the current to growth investment we've on the in that quite relative calibrated investment impact. and it's overall quite in the content

that. So we scale we're disciplined being about how

business. So to to a obviously, it that the the has continue now is the to engagement grow impact on material where place job

for before, seen particular mix or maybe teams or the of us I a like make look it's with years programming the can members. this think or been our trajectory in refine work with unscripted of country, think there. progress. we're our we we signals on content a We an hard you India, can continually the about whether We based which And if getting a iterate. several huge content that our genre amount through right from now Japan you over you've get place model, new film amazing

And that Netflix based love. We're things build. And that we're we of is specific in is they currently area X to We've call particular Virgin games more a Starting over with games we July, an is XX-plus Match. easier those been are is far. seen what those we that to program do working interactive a doesn't Stories, launch the really this is hub going and about And with come including our to month that connecting XXX in IP QX, we And we've These Sunset. our have works, to members games River in is refining the games more, of able space, and work. into development. launched this working in in Paris we games. narrative on Netflix narrative have place Perfect month launched that Stories. per what Selling in title We've ahead. quickly and which new yet move types quarters what like amazing to and of IP different lots Netflix years Emily so one this in very

Theodore Sarandos

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Spencer Wang

Greg. Thank Ted. you, you, Thank

of America. this Our Bank content targeted in from Reif cash of content regarding year. spend. last you is The spend $XX question Ted, question comes had billion Jessica Ehrlich

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Theodore Sarandos

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course, The of brand-new your a and Kidman, off From blow Susanne I Kristen Bier's got And Piano Perfect of Carry-On. Triple show of of Solitude. movie And the fantastic X, we slate finale the back Bell our all this have Rebel our that A to The TV; just Colombia. Tyler of Ray really it's Spy thrilled Will kicked Beauty Harper, events Kai, No the to we Adam Black fun Nobody those Perry; Deed, from series is Academy Kudrow we've kicking Nicole with Cobra Romano in Danson. Ted Classic and We've going and in Umbrella has Lesson, fun, talked Brazil, then, Senna Brody; Eight, Years about, week, August a Ridge, Just mind. U.K.; Six which to off. Black about. And from Wants you live Hundred finale thriller; this & Doves, is we're also from series, with out got which a Couple, This is beautiful Good got bringing Lisa

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Spencer Neumann

a and then spend lot of how do to slower going about Thanks, excited we're Spencer, get growing Ted. stuff That's also content not while you going get all revenue? that do than on. about excited that

Theodore Sarandos

It's that. all don't too, the hotdog in And forget Spence, there. contest,

Spencer Wang

at lot I'm leave going to that to it a since it like Well, to going sounds right. have we're All watch.

So more we a bit all little time. need

So the QX call we'll here. end

Thank forward you, thank to analysts, much. quarter. Greg, investors dialing Ted, and chatting you So for you, to look very today. our for we with joining call, us Spence and next and in you Thank

Netflix (NFLX) 18 Jul 242024 Q2 Earnings call transcript