Netflix Inc (NFLX) 2017 Q2 法說會逐字稿

Welcome to the Netflix Q2 2017 earnings call. I'm David Wells, CFO. I'm joined today, on the company side, by Reed Hastings, our CEO; and Ted Sarandos, our Chief Content Officer.

歡迎參加 Netflix 2017 年第二季財報電話會議。我是財務長大衛威爾斯。今天，公司方面與我一同出席的有我們的執行長里德·哈斯廷斯和首席內容長泰德·薩蘭多斯。

Interviewing us today will be Doug Mitchelson from UBS. We're going to try something a little different and have one interviewer just for a little bit more continuity. And then I think Doug will have our first question, being our only interviewer.

今天採訪我們的是來自瑞銀集團的道格·米切爾森。我們將嘗試一些不同的做法，只安排一位面試官，這可以確保面試的連貫性。然後，我認為道格會提出我們的第一個問題，因為他是我們唯一的面試官。

Before we get started, we will be making forward-looking statements so actual results may vary.

在開始之前，我們將做出一些前瞻性陳述，因此實際結果可能會有所不同。

Doug, over to you for our first question.

道格，請問你第一個問題。

Thank you so much, David. I wanted to start simply by asking if there's anything notable in the quarter. For you, Reed, you talked about Netflix being a learning machine, anything that you've learned that you want to share with us from the past 3 months?

非常感謝你，大衛。我首先想問的是，本季有沒有什麼值得關注的事情。里德，你之前說過 Netflix 是個學習機器，那麼在過去的三個月裡，你學到了什麼想跟我們分享的嗎？

I mean, anything notable beyond 5 million net adds in Q2, all-time record for Q2s, up sequentially from Q1. I mean, notable beyond that, I think we're just seeing that the rewards of doing great content focused on the quality of the service are paying off.

我的意思是，除了第二季新增 500 萬用戶（創第二季歷史新高，環比第一季成長）之外，還有什麼值得關注的嗎？我的意思是，除此之外，我認為我們正在看到，專注於服務品質的優質內容所帶來的回報正在顯現。

I think I'll run through some of the quotes that you guys have in the letter this quarter. And one of the first ones that caught my eye was, "Due to our amazing content." So Ted, did you put that word 'amazing' in there? Any update you'd give us on thoughts around how content influenced the quarter?

我想我會把你們這季在信裡引用的一些話過一遍。其中最先吸引我眼球的一句話是：「因為我們擁有精彩的內容。」所以泰德，是你把「精彩」這個詞放進去的嗎？您能否就內容對本季的影響提供一些最新看法？

Look, I think it was the combination of a lot of great things. 13 Reasons Why started right at the end of the quarter, rolled into some of our biggest content brands, House -- new seasons of House of Cards, Orange is the New Black, ending the quarter with Okja. So I just -- I think it was the combination of a lot of different things, kind of a reinforcement that as long as we're programming to a wide variety of tastes that we -- and keep the quality level high, that we can turn some success off of that.

我認為這是很多優秀因素共同作用的結果。《十三個原因》在本季末開播，隨後又播出了我們一些最熱門的內容品牌，例如《紙牌屋》的新一季、《女子監獄》，最後以《玉子》結束了本季。所以我覺得——這是許多不同因素共同作用的結果，某種程度上強化了這樣一種觀念：只要我們製作的節目能夠滿足各種各樣的口味，並且保持高水平的質量，我們就能從中獲得一些成功。

And I think congratulations on all the Emmy nominations to the company and to you specifically, Ted. 91 is in the (inaudible).

我想祝賀公司獲得所有艾美獎提名，也祝賀你，泰德。91 在（聽不清楚）。

Thank you. It's -- That's definitely a team effort. Beyond my own content team, the marketing and PR groups and everyone who kind of makes that happen. It's hard to forget that it is a race, so it is a big campaign that attaches to that stuff too but 91 nominations is an all-time record for us, and we're thrilled.

謝謝。這——這絕對是團隊合作的成果。除了我自己的內容團隊、行銷和公關團隊以及所有為此付出努力的人之外。很難忘記這是一場競選，所以這是一場與此相關的龐大活動，但 91 項提名是我們有史以來的最高紀錄，我們感到非常興奮。

Continuing with the letter a little bit, David, for you. You note that our 3Q guidance assumes much of the 2Q momentum will continue. You say you're cognizant of the lessons of the prior quarters where you over-forecasted the lumpiness in net adds. So should we take this to mean that the third quarter improves, that you're cognizant of (inaudible)?

大衛，我再給你續寫一會兒信。您指出，我們第三季的業績預期是基於第二季的大部分成長動能將得以延續的假設。你說你意識到了前幾季的教訓，當時你高估了淨增人數的波動。所以，我們是否可以理解為第三季度有所改善，而你也意識到了這一點（聽不清楚）？

Well, I think, back to your earlier question about what lessons in the last 90 days have held for us, and one of them is our business is a little bit tough to predict, given the success of content and the popularity of content. We still think the major driver is adoption of Internet television. But on top of that, we're increasingly growing throughout the world, so we're getting more word-of-mouth in our newer territories and we're seeing great content slates have in effect like they did in the second quarter. So I think you can take that line to mean that our forward guidance assumes continued good trends and continued great trends. But we're a little bit cognizant of other quarters where we've either under- or over-forecasted because some of that demand was pulled forward by a great content state. In this case, in the second quarter, we had a really strong content slate.

嗯，我想，回到你之前的問題，即過去 90 天我們學到了什麼經驗教訓，其中之一就是，鑑於內容的成功和內容的受歡迎程度，我們的業務有點難以預測。我們仍然認為主要驅動因素是網路電視的普及。但除此之外，我們在世界各地都在不斷增長，因此我們在新地區獲得了更多的口碑傳播，我們看到優秀的內容計劃像第二季度一樣產生了效果。所以我認為你可以把這句話理解為，我們的前瞻性指引假設良好的趨勢和強勁的發展勢頭將持續下去。但我們也稍微意識到，在其他一些領域，我們的預測要么過高要么過低，因為部分需求是由優質的內容提前帶動的。在這種情況下，第二季我們推出了一系列非常強大的內容。

And continuing on with you, David, you -- at some point when you -- ahead of expectations, you talked in the letter about margins being on track for full year, 7%. Does that suggest that with subs, and therefore likely revenue, coming better than expected, you're choosing to invest more and maintain that margin target?

大衛，我們繼續聊聊你，你——在某個時候——超出了預期，你在信中談到全年利潤率有望達到 7%。這是否意味著，由於訂閱用戶數量（以及由此帶來的收入）優於預期，您選擇增加投資並維持利潤率目標？

Yes. So we had a 9% margin in the first quarter and we had a lot of content come on in this quarter, so we guided down to 5%. So on the first 6 months, we're running right on our target of 7%, and our guide is right on 7%. So you can take from that, that we're going to reinvest and plow back in the business sort of any over-forecasted growth that we have on the top line.

是的。所以，我們第一季的利潤率為 9%，而本季我們推出了許多新內容，因此我們將預期利潤率下調至 5%。所以前 6 個月，我們的業績完全達到了 7% 的目標，而我們的指導目標正好是 7%。所以你可以從中看出，我們將把營收成長中任何超出預期的部分再投資到業務中。

And David, one more for you. You call out un-grandfathering impact in the fourth quarter. I think you had some price increase sort of -- perhaps that was back in 2Q and un-grandfathering again in 4Q. Is there any sort of sizing you can give investors around the pricing strategy issues that impacted, specifically 3Q, but the year as well if you're...

大衛，再給你一個。你在第四季指出取消祖父條款的影響。我認為你們的價格有所上漲——可能是在第二季度，然後在第四季度取消了先前的優惠政策。您能否就影響到第三季甚至全年的定價策略問題，向投資人提供一些規模上的預估？

Well, I think, last year, what we found was because of the PR and the news around the price change in the second quarter, which actually didn't happen or un-grandfathering until the third or fourth quarter, we had a real blended effect through the year. So it's hard to tease out exactly which quarter we saw effects on both acquisition or retention. We do know that comping off of last year, we think we'll have less noise this year. I think that's pretty clear. So I would say it was a median in terms of size and impact on the business from last year.

我認為，去年我們發現，由於第二季價格變動的公關宣傳和相關新聞（實際上直到第三或第四季才發生價格變動或取消祖父條款），導致全年產生了真正的綜合影響。因此，很難準確判斷是在哪個季度，我們在客戶獲取和客戶留存方面都看到了影響。我們知道，根據去年的情況來看，我們認為今年的噪音會減少。我覺得這一點很清楚了。所以我覺得，就規模和對業務的影響而言，它與去年相比處於中等水平。

Over to Reed. Reed, I'm sure you'd tell me, based on the results you just reported, you did well everywhere. But in particular, it looks like Europe is really getting critical mass, and every country in Europe is different. So I thought I'd sort of try to zoom in on Germany as an example, particularly, I think Germany is kind of a tough market for U.S. companies; consumers over there don't like to pay for TV, they don't watch as much TV, obviously, English is not their local language. Amazon was there first as well, so there's a competitive dynamic. But it looks -- based on our tracking, you're actually surpassing Amazon, at least with the app downloads if not subs. Is that -- are you at the point where you're taking the leadership in Germany? And could you talk a little bit about what you've done right and what you're doing right that has caused that market to really be able to develop?

接下來交給里德。里德，根據你剛剛報告的結果，我相信你會告訴我，你在各方面都做得很好。但尤其值得注意的是，歐洲似乎正在形成真正的臨界規模，而且歐洲每個國家的情況都不盡相同。所以我決定以德國為例，重點分析一下，特別是，我認為德國對美國公司來說是一個比較艱難的市場；那裡的消費者不喜歡付費看電視，他們看電視的時間也不多，顯然，英語也不是他們的母語。亞馬遜也是先行者，所以有競爭關係。但根據我們的追蹤數據，你們似乎已經超越了亞馬遜，至少在應用程式下載量方面是如此，即使訂閱用戶數量沒有超過亞馬遜。也就是說──你已經到了要在德國擔任領導職務的地步了嗎？您能否談談您過去和現在做對了哪些事情，才使得這個市場能夠真正發展起來？

Doug, Amazon's super successful around the world. If you look at U.S. with Prime, incredibly successful. It just doesn't seem to take away from us, so I wouldn't characterize it as us versus Amazon in Germany. I would really characterize it as, can we have a service that's so great that the Germans find it worthwhile paying for? And clearly, we're succeeding at that, making our service better and better. In particular, there's no advertisements on Netflix, and so it's great for kids, it's great for teens. And then the great content is so significant in helping those, the growth that you're picking up. But as you suggested, we're really seeing that around the world, whether it's Brazil or Argentina or Japan, Singapore or Germany, Internet TV is really catching on for us, for YouTube, for others.

道格，亞馬遜在全球範圍內都非常成功。如果你看看美國亞馬遜Prime，你會發現它非常成功。這似乎並沒有對我們造成任何影響，所以我不會將其描述為我們與亞馬遜在德國的對抗。我更願意這樣描述：我們能否提供一項如此出色的服務，讓德國人覺得值得付費？顯然，我們在這方面取得了成功，我們的服務越來越好。尤其值得一提的是，Netflix 上沒有廣告，所以它非常適合孩子，也非常適合青少年。而優質的內容對於幫助你進步至關重要。但正如您所說，我們確實看到，在世界各地，無論是巴西、阿根廷、日本、新加坡還是德國，網路電視對我們、對 YouTube 以及對其他人來說，都正在迅速普及。

And I guess, what I'm trying to get to, Reed, is you launched that app years ago. And I think when you launched, you grew parallel for Latin America and that it will take some time, but you'll figure the markets in Europe out, and eventually you're going to have similar levels of success. Do those parallels still hold? And can we look forward to the Europe where there's fits and starts in terms of progress? But if you really hit the point where you reach escape velocity, you think those markets would be strong markets that hold?

我想說的是，里德，你幾年前就推出了那個應用程式。我認為，你們在拉丁美洲推出產品時，發展速度與拉丁美洲同步，雖然這需要一些時間，但你們會了解歐洲市場，最終也會取得類似的成功。這些相似之處現在還成立嗎？我們是否可以期待一個在發展過程中時好時壞的歐洲？但如果你真的達到了逃逸速度的臨界點，你認為這些市場會是能夠維持強勁動能的市場嗎？

Well, I think all throughout the West, so Latin America, North America and Europe, we're doing very well. We just got to continue what we're doing. More local productions. We've got some amazing new shows we're producing in Europe and in Latin America. With Asia, we've got a lot more to learn. We're really expanding a lot in India, Japan. We're figuring it out market by market. But Asia's very unique and very large, so we see a huge opportunity for us over the next couple of years, all of us spending more time there and investing more.

我認為整個西方世界，包括拉丁美洲、北美和歐洲，都發展得非常好。我們只需要繼續做我們正在做的事情。更多本地產品。我們正在歐洲和拉丁美洲製作一些非常棒的新節目。對於亞洲，我們還有很多東西要學習。我們在印度和日本的業務正在快速擴張。我們正在逐個市場地摸索。但亞洲非常獨特，而且幅員遼闊，因此我們看到未來幾年對我們來說是一個巨大的機遇，我們所有人都會在那裡投入更多的時間和資金。

Reed, continuing along that line, because Asia's so diverse, and you think about Korea, Japan, Thailand, India, they're all very different markets. How do you prioritize your investments in the Asia (inaudible)?

里德繼續沿著這個思路說，因為亞洲非常多元化，想想韓國、日本、泰國、印度，它們都是非常不同的市場。您如何決定在亞洲的投資優先順序？ （聽不清楚）

We look at market size, we look at growth of Internet, kind of all the factors that we've always looked at around the world. And so then we're able to prioritize in what we're doing. And we saw some great success, for example, this quarter with Okja. And maybe Ted you want to describe a little bit of that.

我們會關注市場規模，關注網路的成長，以及我們一直以來在全球範圍內關注的所有因素。這樣我們就能決定工作的優先順序。例如，本季我們憑藉《玉子》取得了巨大的成功。泰德，或許你想稍微描述一下這方面的狀況。

Yes, I mean Okja is directed by Bong Joon-ho, who's one of the -- is the most celebrated director in Korea and is a huge star and an attraction in and of himself, but also the movie itself is the -- one of the most ambitious productions in the history of Korea. His films tend to travel around the world pretty well; made a ton of noise at the Cannes Film Festival. It was the most talked-about film at the festival. So it helped in -- attract new subscribers also, but it also brings a brand halo to Netflix that it's a place for great content worth paying for. And I think we saw some of that benefit throughout Europe and in pockets of Asia where we saw big sign-ups in Korea. But remember, for most people, they learned about Netflix for the first time when Okja was coming out in Korea. So relative to the rest of the world, we've got a lot of work to do, but it was a great introduction to Netflix for a lot of the world.

是的，我的意思是，《玉子》是由奉俊昊執導的，他是韓國最受讚譽的導演之一，他本身就是一位巨星，極具吸引力，而這部電影本身也是韓國歷史上最具雄心的作品之一。他的電影在世界各地都廣受好評；在坎城影展上引起了巨大反響。它是影展上最受矚目的影​​片。所以它不僅有助於吸引新用戶，還為 Netflix 帶來了品牌光環，表明它是一個提供值得付費的優質內容的平台。我認為我們在歐洲各地以及亞洲部分地區都看到了這種益處，尤其是在韓國，我們看到了大量用戶註冊。但請記住，對大多數人來說，他們第一次了解 Netflix 是在電影《玉子》在韓國上映的時候。所以相對於世界其他地區而言，我們還有很多工作要做，但這對世界上的許多人來說，是一次了解 Netflix 的絕佳機會。

Well, and so in carrying that forward that Reed just mentioned, more local content and (inaudible)

嗯，所以，正如里德剛才提到的，要推進更多本地內容和（聽不清楚）

Yes, and even more so, Doug, it's -- think about local content for global audiences. So the idea, that's a fantastic story that we'll make a Korean movie for Korea, but it's even a bigger story that the movie is getting watched by the millions all around the world.

是的，而且更是如此，道格，想想面向全球觀眾的本地內容。所以這個想法很棒，我們要為韓國製作一部韓國電影，但更棒的是，這部電影被全世界數百萬人觀看。

So Ted, can you talk a little bit about how you're expanding (inaudible) the target overseas, the size of the team, is there capacity growth? Is there growth in percentage of budget being allocated to...

泰德，你能談談你們是如何拓展海外市場（聽不清楚）的嗎？團隊規模如何？產能是否有所成長？分配給…的預算比例是否有成長？

Yes, as Reed mentioned, matching the programming into local taste is really the key. And we've seen it in our expansion through Latin America, our expansion into Europe. And as we look to Asia, we have to get better and better at matching those tastes. And those tastes are not as easily aligned with Western tastes. So we'll invest more time and energy in Asia, putting some people on the ground in Asia that we haven't historically, but -- well within how we looked at the size of the teams generally, but locating them more likely outside of the U.S. as we continue to grow for local audiences in Asia and throughout the rest of Europe.

是的，正如里德所提到的，讓節目內容符合當地口味才是關鍵。我們在拉丁美洲的擴張以及在歐洲的擴張都看到了這一點。當我們把目光投向亞洲時，我們必須越來越善於迎合那裡的口味。而且這些口味並不容易與西方口味相符。因此，我們將投入更多的時間和精力在亞洲，在亞洲部署一些我們過去從未部署過的人員，但這完全符合我們對團隊規模的總體考量，而且隨著我們在亞洲和整個歐洲地區繼續發展，我們更有可能將他們安置在美國以外的地方。

And Doug, just to round out Ted's answer. All those things that you mentioned are involved in that. So it's growth of the acquisition and development teams, it's also budget. I mean, we already had in place growth in budget in many of these territories. It's just trying to deploy that more efficiently. And in some cases, it's adding on to the levels of investment. You asked about how we prioritize. Generally, when we see success, we try to add on to that until we reach a point where -- of diminishing returns. And so if we're going to see success in some markets, we may up the content budget in those markets.

最後補充泰德的回答，道格也說幾句。你提到的所有那些因素都與此有關。所以，這牽涉到收購和開發團隊的成長，也牽涉到預算。我的意思是，在很多地區，我們已經增加了預算成長。只是想更有效率地部署它。在某些情況下，這還會增加投資額。你問我們如何確定優先順序。通常情況下，當我們取得成功時，我們會嘗試在此基礎上繼續發展，直到達到收益遞減的臨界點。因此，如果我們在某些​​市場取得成功，我們可能會增加這些市場的內容預算。

It all makes sense. The -- Reed, over to you. I think since we're on Asia, if you think about emerging market broadly, there's certainly a lot from mobile. And I'm curious if you could give us an update on the implication for strategy and efforts that you have underway, and if you could talk about the (inaudible)?

一切都說得通。里德，接下來就交給你了。我認為既然我們談到了亞洲，如果你從更廣泛的新興市場角度來考慮，那麼行動領域肯定有很多值得關注的地方。我很想知道您能否向我們介紹一下您正在進行的策略和工作方面的影響，以及您能否談談（聽不清楚）？

Absolutely, Doug. I mean, we've had great success on mobile in the developed markets like the U.S. and Europe and then throughout Latin America, now in Asia. And all of the Netflix service works extremely well on mobile. We're continuing to get better and better at encoding efficiently our films and TV series so that it takes less and less network bandwidth. And we're rising in popularity around the world. And that's paralleling the improvements that YouTube and others are doing to make video a natural part of mobile phones. And so that's just a continued evolution.

當然，道格。我的意思是，我們在美國、歐洲等已開發市場的行動端取得了巨大的成功，然後又在拉丁美洲取得了成功，現在又在亞洲取得了成功。而且Netflix的所有服務在行動裝置上運作得都非常流暢。我們不斷改進電影和電視劇的編碼效率，使其佔用更少的網路頻寬。我們在世界各地的受歡迎程度正在不斷提高。這與 YouTube 和其他公司正在進行的改進相呼應，這些改進旨在使影片成為手機的自然組成部分。所以這只是一個持續演變的過程。

Is -- are mobile Netflix products a different product than [we're used to right now]?

行動版 Netflix 產品與我們現在習慣使用的產品有何不同？

No, mobile's just a 4- or 5-inch screen for us with a great touch interface, and it's very similar to what you see on an iPad to the television. So think of it as there's just many screens that you can enjoy Netflix on.

不，對我們來說，手機只不過是一個4到5英寸的螢幕，配有很棒的觸控介面，它和你在iPad上看到的電視螢幕非常相似。所以你可以把它想像成有很多螢幕可以用來觀看 Netflix。

As I think about (inaudible)

當我想到（聽不清楚）

I'm afraid that I can't hear you anymore. There seems to be some AV problem.

恐怕我聽不見你的聲音了。似乎存在一些音視頻問題。

So the signal that -- can you hear me now?

所以，訊號是──你現在能聽到我說話嗎？

Barely. You may need to shout.

僅僅。你可能需要大聲喊叫。

So for Reed or David, as you consider emerging markets again broadly, is there capacity to mass market product without having the need to lower price point?

所以對於里德或戴維來說，當你們再次廣泛地考慮新興市場時，是否有能力在無需降低價格的情況下進行大規模產品行銷？

No, we'll see. We've been very successful getting to beginnings of a mass-model product in Latin America, where you've got a lot of fairly developed economies. We'll see in Asia what we can do with that. But for the first couple of years, it's focused on more high-end, Western-oriented elites. And then as we grow into that, we can think about expanding beyond that.

不，我們拭目以待。我們在拉丁美洲已經非常成功地推出了一款大眾化產品，那裡有許多相當發達的經濟體。我們將看看在亞洲我們能用這種方法做些什麼。但在最初幾年，它主要面向高端、西方化的菁英群體。隨著我們在這個領域不斷發展壯大，我們可以考慮在此基礎上進一步拓展。

Ted, back over to you. At the beginning of the year, you talked about having a strong second half content slate. Do you feel that the content slate is settling out the way you thought, and there is a strong second half? And any titles that you (inaudible)...

泰德，該你了。年初的時候，你曾說過下半年會有一系列精彩的內容。您是否覺得內容安排正如預期發展，下半年會非常精彩？還有任何你（聽不清楚）想看的標題…

Is there any way you can see what the --

有什麼辦法可以看到--

There's a lot to be really excited about in the second half in terms of our content releases. Starting as early as next week, we have a great show called Ozark starring Jason Bateman that we're really excited to launch. And then, in August, we'll -- we have the release of Death Note, a great new film that we're going to panel at Comic-Con next -- this week. And also in August, The Defenders, which brings together all of the characters from the -- Marvel's Defenders, Jessica Jones, Luke Cage, Daredevil and Iron Fist, for an incredible season that people are really excited about. And of course, throughout the year, we have things that'll lead up to Bright at the end of the year, which is a huge film with Will Smith that'll be only available on Netflix that we're incredibly excited about.

下半年我們的內容發佈有許多令人興奮之處。從下週開始，我們將推出一部由傑森貝特曼主演的精彩劇集《黑錢勝地》，我們對此感到非常興奮。然後，到了八月份，我們將迎來《死亡筆記》的上映，這是一部很棒的新電影，我們將在下週的聖地牙哥動漫展上進行專題討論。此外，8 月還將播出《捍衛者聯盟》，該劇匯集了漫威《捍衛者聯盟》、《傑西卡瓊​​斯》、《盧克凱奇》、《夜魔俠》和《鐵拳》中的所有角色，帶來一個精彩絕倫的季度，人們對此感到非常興奮。當然，今年我們也會推出一些項目，為年底上映的《光靈》（Bright）做鋪墊。這是一部由威爾史密斯主演的大製作電影，只會在 Netflix 上播出，我們對此感到無比興奮。

Ted, what do you think Reed means when he says he wants you to be able to cancel more shows?

泰德，你覺得里德說他希望你能取消更多節目是什麼意思？

Look, I think I mentioned before that, in this universe, we look at a lot of things like failure's not such a bad thing, and if you're not failing, you -- maybe you're not trying hard enough. So when you -- we have a good hit rate, and even with the recent cancellations, we're -- 93% of our shows have been renewed. So you make -- you want to be introspective and look at that and say, "Are we being adventurous enough? Daredevil?" We're trying new things. And I think when you think of things as a -- when you have a very high hit ratio, you definitely want to keep second-guessing yourself even though you do.

你看，我想我之前說過，在這個宇宙裡，我們看待很多事情的方式是，失敗並不是一件壞事，如果你沒有失敗，也許說明你還不夠努力。所以，我們的節目成功率很高，即使最近一些節目被取消，我們也有93%的節目獲得了續訂。所以你要進行反思，審視自己，然後問自己：“我們是否足夠勇於冒險？”夜魔俠？我們正在嘗試一些新的東西。我認為，當你把事情看作——當你的命中率非常高時，即使你確實做到了，你也肯定要不斷地質疑自己。

David, when we think about potential for more and more original shows being produced, therefore, widening more and more cancellations over time, any impact on sort of the financials that we should think about? And separately and importantly, is the viewing that you're expecting, whether it's license content or it's original content, whether it's movies that you're putting out, consistent with the amortization schedule that you have rights?

大衛，當我們考慮到原創節目可能會越來越多，因此隨著時間的推移，取消的節目也會越來越多時，我們應該考慮這會對財務狀況產生什麼影響嗎？另外，同樣重要的是，您所期望的觀看方式，無論是授權內容還是原創內容，無論是您發行的電影，是否與您擁有版權的攤銷計劃相符？

Yes. And I think where you raised a good point, which is the more shows we add, the more likely in absolute numbers that you'll see cancellations, of course. But that's only novel on Netflix. And it's still novel, because you see on network television about 2/3 of the -- or about 1/3 of the content gets cut in the first season versus our content, which is mostly renewed. And it's not because we're less careful about it, it's because we can more efficiently build it, and not 100% of the time. So we want to launch shows. We love that there's a deep-passioned fan base for a show. We just need it to be big enough to support the economics of that show so we don't create opportunity cost for future fans of new shows.

是的。我認為你提出的觀點很好，那就是我們增加的節目越多，從絕對數量上看，取消的節目就越多。但這只有在 Netflix 上才有。而且它仍然很新穎，因為你會看到電視網的節目第一季大約有 2/3 或 1/3 的內容被刪減，而我們的節目內容大部分都會續訂。這並不是因為我們不夠謹慎，而是因為我們可以更有效率地建造它，儘管並非每次都能 100% 成功。所以我們想推出節目。我們很高興看到一部劇擁有如此熱情忠實的粉絲群。我們只需要它足夠大，能夠支撐該節目的經濟效益，這樣我們就不會給未來新節目的粉絲造成機會成本。

And Doug, just to take the sort of accounting-oriented part of that question, I would say, no, we don't anticipate right now. I mean, we look at this constantly. Every quarter we look at the trends. Many of these shows, even if they're not picked up for a renewal, they may have a story arc that completes the narrative. And so it really is -- for us, is about the sort of continuity of viewing over the life of the show. So even if some of that viewing is concentrated as our amortization methodology reflects, up front in the sort of first release, the first month of release of that content on the site, it may have sort of steady viewing over the life. And if it does, then it's going to be sort of reflective of those trends. If it's really concentrated, then yes, sure, we would have to reflect that. But many of the nonrenewals get wrapped up. Bloodline is an example of something that got wrapped up in a narrative. We're going do a movie wrap-up on Sense8. And so I think, overall, you'll see us try to wrap the narratives on these.

道格，就這個問題中與會計相關的部分而言，我想說，不，我們目前沒有這方面的預期。我的意思是，我們一直在關注這個問題。我們每季都會關注趨勢。許多這類劇集，即使沒有獲得續訂，也可能擁有完整的故事線。所以對我們來說，這確實關乎在節目播出期間的持續觀看體驗。因此，即使某些觀看量如我們的攤銷方法所反映的那樣集中在網站內容首次發布後的第一個月，但其生命週期內可能會有較為穩定的觀看量。如果真是如此，那麼它將在某種程度上反映出這些趨勢。如果濃度真的很高，那麼是的，當然，我們必須反映這一點。但很多不續約的案例最後都解決了。《血脈》就是一個例子，說明有些東西被包裹在敘事之中。我們將對電影《超感獵殺》（Sense8）進行總結。所以我覺得，總的來說，你會看到我們試著把這些故事串連起來。

And I have some questions on content. I wanted to set it up, Reed, with a question for you. In the past, we've gotten parallels between Netflix and HBO, and that implies Netflix is a TV network. I think even the letter this quarter, it talked about that, the TV network shows phaseology. At the same time you've expanded to the unscripted movies, original TV. Is Netflix instead more of a Comcast-type version of Internet TV? Or should we think about it as an Internet-TV network?

我還有一些關於內容方面的問題。里德，我想先問你一個問題。過去，我們曾將 Netflix 和 HBO 進行比較，這暗示 Netflix 是一個電視網絡。我認為就連本季度的信件也談到了這一點，電視網絡節目呈現了階段性。同時，你們的業務也拓展了真人電影和原創電視節目領域。Netflix 比較像是 Comcast 式的網路電視嗎？或者我們應該把它看作是一個互聯網電視網絡？

I think about it more like a super network. We're talking about addressing content desires and needs across the board, as you mentioned, unscripted, but also kids and films. This year at the Emmys, just as an example, we have 5 different series nominated for best comedy or drama. We also have 2 documentary series nominated for best documentary series, 2 documentary films nominated for best documentary film. We won 10 daytime Emmys for our kids programming. So we are doing across-the-board programming not programming for one niche, which networks tend to do.

我更願意把它看作是一個超級網路。正如您所提到的，我們正在討論如何全面滿足人們的內容需求，包括非劇本類內容，以及兒童內容和電影。以今年的艾美獎為例，我們有 5 部不同的劇集獲得了最佳喜劇或劇情類劇集的提名。我們還有 2 部紀錄片系列獲得最佳紀錄片系列提名，2 部紀錄片獲得最佳紀錄片提名。我們的兒童節目獲得了 10 項日間艾美獎。所以我們做的是全面性的節目製作，而不是像電視台那樣只針對某個特定領域進行節目製作。

And then, for Reed, could you -- question on content (inaudible). How do you decide how much to (inaudible) amount at any given point in time? And how do we measure sort of aggregate value that customers that any one piece of content that are becoming less and less important as you grow your body of original content?

然後，對於里德，您能否——關於內容的問題（聽不清楚）。你如何決定在任何特定時間點應該支付多少（聽不清楚）金額？那麼，我們該如何衡量客戶對任何單一內容的整體價值呢？隨著原創內容數量的成長，單一內容的重要性會越來越低。

Well, every piece of content that we do is important, and we try to have that content flourish around the world. But in terms of the overall investment levels, we're continuing to see increased median viewing compared to a year ago, 2 years ago, 3 years ago, as we're winning a few more of the moments of truth of what you do to relax. But still, we're such a small player in our viewing compared to linear TV, compared to YouTube. So we've got a long way to go to have more and more content to please more and more members and continue to grow. And what you see us doing as we grow is also improving our margins. So we're getting some efficiency out of that as opposed to spending every dollar in the content. But we are growing the content budget significantly also because of the opportunity that we see.

我們製作的每一條內容都很重要，我們努力讓這些內容在世界各地蓬勃發展。但就整體投資水平而言，與一年前、兩年前、三年前相比，我們看到平均觀看量持續增加，因為我們贏得了更多展現你放鬆方式的關鍵時刻。但是，與傳統電視和 YouTube 相比，我們在觀看領域仍然只佔很小的份額。因此，我們還有很長的路要走，才能提供越來越多的內容來取悅越來越多的會員，並繼續成長。隨著我們的發展，您也會看到我們的利潤率也不斷提高。這樣一來，我們就能提高效率，而不是把每一分錢都花在內容上。但我們大幅增加內容預算也是因為我們看到了機會。

Ted, some of -- back to you in terms of strategy for how you're producing content. When you think about the fact that networks now can self-produce titles, you can license exclusive originals from Hollywood studios, you can license third-party -- you can license reruns, where do you see the race will turn at this point in time? And how do you see your -- others responding to your strategy of self-producing a few shows at this point?

Ted，關於你如何製作內容，有些問題──還是得看你的策略了。考慮到現在電視台可以自行製作節目，可以從好萊塢製片廠獲得獨家原創節目的授權，可以獲得第三方節目的授權——還可以獲得重播節目的授權，你認為此時此刻，這場競爭的走向會如何？那麼，你認為其他人會如何看待你目前自行製作幾檔節目的策略？

Our -- the success we've had with our self-produced shows has given us a lot more confidence to expand it. Because we're a global network, those rights are really important in terms of being able to control our destiny, when we can make shows available and what formats to make them available. So -- and beyond that, there's an economic trade-off, which is there's a big studio margin that we're able to put on the screen and make better shows when we produce it ourselves. So a show like Stranger Things, when it becomes a big cultural phenomena, we'd like to be able to control the destiny of those brands as we continue to invest in them. But at the same time, we want to lean on putting the best programming possible on the air. So not being dogmatic about which shows we pick depending on their business model, but being really careful about picking shows that are great regardless of their business model. But you'll see us do a lot more of self-producing whenever we can.

我們自主製作的節目所取得的成功，讓我們更有信心擴大規模。因為我們是一個全球性網絡，這些權利對於掌控我們的命運至關重要，它決定了我們何時可以播出節目以及以何種形式播出節目。所以——除此之外，還有經濟上的權衡，那就是當我們自己製作節目時，我們可以獲得更大的工作室利潤，從而製作出更好的節目。所以像《怪奇物語》這樣的劇集，當它成為一種巨大的文化現象時，我們希望能夠掌控這些品牌的命運，因為我們會繼續投資它們。但同時，我們希望盡最大努力播出最好的節目。所以，我們不會因為節目的商業模式而固執己見地選擇節目，而是會非常謹慎地選擇那些無論商業模式如何都優秀的節目。但你會看到，只要條件允許，我們就會更多地進行自主生產。

And so last question in the series on content, Ted. We probably end up asking this every quarter forever. But any issues on -- with your positive content for access to the best shows with more and more players? Obviously, Apple hired 2 Sony executives. You have -- Facebook announced they're buying some original content, others continue to expand. You're certainly competing very well in the Emmys that are sort of proof of the quality of content, but on the margin, do you think, cost-wise, more than you would like, some projects go to others that you prefer you have yourself?

那麼，關於內容的最後一個問題，Ted。我們可能每季都要問這個問題，永遠這樣下去。但是，關於您提供的積極內容，以便讓更多玩家能夠觀看最好的節目，是否存在任何問題？顯然，蘋果公司聘用了兩名索尼高層。你已經知道——Facebook宣布他們將購買一些原創內容，其他內容則繼續擴張。你們在艾美獎上的競爭非常激烈，這在某種程度上證明了內容的品質。但是，從成本角度來看，你是否覺得有些專案最終落到了別人手裡，而你其實更希望自己能參與其中？

Look, I think Internet television is an enormous space, and there's going to be lots of competition. And as they come in, if they're going to bid up the cost of the best stuff, which is great, it's great for consumers because great -- more things get made and it's great for creators because there's more buyers at the table. So we expect the content cost to go up on the top premium things, but I think, as I said, I think that's a good result for everybody.

我認為網路電視是一個巨大的領域，競爭將會非常激烈。當他們湧入市場時，如果他們要抬高最好的商品的價格，這對消費者來說是好事，因為這樣一來，就會有更多的商品被生產出來；這對創作者來說也是好事，因為有更多的買家參與其中。所以我們預計頂級優質內容的成本會上漲，但我認為，正如我所說，這對每個人來說都是個好結果。

And that, of course, brings in new capacity. Like you saw headlines today that Liberty Global and TPG were forming a new television studio to produce shows for all this new market. So as the prices go up, there's more capacity because there's very large numbers of writers out there.

當然，這會帶來新的產能。正如你今天在新聞頭條上看到的，Liberty Global 和 TPG 正在組建一個新的電視工作室，為這個新市場製作節目。所以隨著價格上漲，產能也隨之增加，因為市面上作家的數量非常龐大。

In the letter, you talked pretty explicitly about expanding distribution relationships, whether it's content providers or pay-per-view providers bundling in Netflix service and, I guess, 2 questions there. Reed, for you, first, what about the reverse? Do you see Netflix as a platform that can bundle other video services and sell that on profit and make a margin? And second, as part of that, any specifics behind the point made in the letter that you expect to really expand these efforts?

在信中，您非常明確地談到了擴大分銷關係，無論是內容提供商還是按次付費提供商將 Netflix 服務捆綁在一起，我想，這裡有兩個問題。里德，首先，對你來說，反過來呢？你認為 Netflix 可以作為一個平台，與其他視訊服務捆綁銷售並從中獲利嗎？其次，作為其中的一部分，您在信中提出的觀點——即您希望真正擴大這些努力——是否有任何具體細節？

There are several companies who are selling networks on top of their platforms. So Hulu is doing that, Amazon is doing that. We don't see that as a business direction for us. We're really focused on making our network as great as it possibly can be. And then as you point out, we're now looking at proposals for including Netflix in some services and beginning to learn the bundling part of the business. We're doing a little bit of that in Europe already and it's been quite successful, thus we're interested in expanding that.

有好幾家公司在其平台上銷售網路服務。所以 Hulu 在這樣做，亞馬遜也在這樣做。我們認為這不是我們應該發展的業務方向。我們正全力以赴，力求將我們的網路打造得盡可能完善。正如你所指出的，我們現在正在研究將 Netflix 納入某些服務的提案，並開始學習捆綁銷售業務。我們在歐洲已經做了一些這方面的嘗試，而且非常成功，因此我們有興趣擴大規模。

And shifting over to David and ASP. I think, in the past, you've talked about mid-single digit being a sort of aspirational point to consider. And when we look at the tier that you have, it seems like the base tier resulted in [finding] price to the middle tier and the upper tier. I wanted to deal with that [into], are there other ways to differentiate those tiers to create more value and have that be an even bigger part of ASP growth in the future?

然後鏡頭轉向大衛和ASP。我認為，你過去曾說過，個位數中段是一個值得考慮的目標點。當我們查看你們的層級結構時，似乎基礎層級導致了中層級和高層級的價格。我想探討的是，是否有其他方法可以區分這些層級，從而創造更多價值，並使其在未來成為 ASP 成長中更大的組成部分？

Well, I -- Doug, I'm not sure I heard your -- the first part of your question on ASP so just repeat that first part.

嗯，道格，我不確定我是否聽清楚了你關於ASP問題的第一部分，所以請你再重複一次第一部分。

So for ASPs, I think, in the past, you've said that mid-single-digit growth longer term is the right way for investors to think about Netflix' pricing potential.

所以對於平均售價 (ASP) 而言，我認為，您過去曾說過，從長遠來看，中等個位數的成長才是投資人看待 Netflix 定價潛力的正確方式。

That's correct. So if you're just looking for clarity there, yes, that's an easy answer.

沒錯。所以，如果你只是想弄清楚這一點，是的，答案很簡單。

And when we think about the tiers that you currently have in place, the mid-priced tier and the higher-priced tier feel like they're relatively close in price to the base tier. Is there other ways that you're considering to add value to the higher-priced tiers to have tiering up be an increasing part of that ASP growth?

當我們考慮你們目前實行的等級制度時，中價位等級和高價位等級的價格似乎與基礎等級的價格相對接近。您是否考慮過其他方法來增加高價位套餐的價值，使價格升級成為平均售價成長的重要組成部分？

Well, the -- I don't think so. I mean, right now, I would say we do see success with people taking the upper tier with just a differentiation of concurrent streams and high definition. So I think -- we don't think necessarily that we need to add more value. We have the flexibility to add more value in terms of that tier differentiation, but honestly, we think there's progressive growth just from thinking about differentiating those tiers on price point a little more in terms of middle and upper. And then in terms of an expectation of ASP growth, that's reasonable in terms of what you outlined. Now we are lapping the un-grandfathering of last year, so you are seeing sort of revenue on a year-over-year basis or ASP on a year-over-year basis start to reflect that lapping of a large pool of un-grandfathers coming off.

嗯，我不這麼認為。我的意思是，就目前而言，我們確實看到，人們透過提供並發流和高清等差異化優勢，在高端產品領域取得了成功。所以我覺得——我們不一定認為我們需要增加更多價值。我們有能力在產品層級差異化方面增加更多價值，但說實話，我們認為，僅僅考慮在中高端產品的價格點上稍微區分一下這些層級，就能帶來漸進式的成長。至於對平均售價成長的預期，根據你概述的內容來看，這是合理的。現在我們正在逐步取消去年的祖父條款，因此你會看到同比收入或同比平均售價開始反映出大量祖父條款取消後的市場情況。

And Doug, we're super proud that we've been able to maintain this $8 access point in the U.S. or EUR 8 in Europe, which we've had in place since 2010. So all of this decade, Netflix has been available for $8. And when you think about the content increase over last 7 years, it's phenomenal, and it's still $8 a month at the base level. And we're getting the ASP growth as people optionally select to get HD and Ultra HD, which are amazing new formats that have come on. But again, a key part of the successful strategy is that we're staying very, very affordable for people.

道格，我們非常自豪能夠維持美國 8 美元或歐洲 8 歐元的接入點，我們自 2010 年以來一直保持著這一價格。所以這十年來，Netflix 的價格一直是 8 美元。想想過去 7 年的內容成長，真是驚人，而基本價格仍然是每月 8 美元。隨著人們可以選擇觀看高清和超高清影片（這些都是非常棒的新格式），我們的平均售價也隨之增長。但再次強調，成功策略的關鍵在於我們要保持價格非常非常實惠。

Yes, it's interesting because you mentioned sort of the growth in content and the service, Reed, and you mentioned that the median time spent has been increasing. Are newer customers that are coming on the service this year behaving similar to new customers 2 years ago or 4 years ago? Or...

是的，這很有意思，因為你提到了內容和服務方面的成長，里德，而且你也提到用戶花費的平均時間一直在增加。今年新加入服務的客戶的行為與 2 年前或 4 年前的新客戶的行為相似嗎？或者...

Similar and better. I mean, they're watching more.

類似但更好。我的意思是，他們看得更多了。

More engaged, yes.

是的，參與度更高了。

Yes, more engaged. Again, that's a combination of the user interface, the algorithms or the personalization and, of course, the content itself. And so it's very exciting that we've been able to see even higher engagement with members now compared to last year and the prior years.

是的，參與度更高了。這再次體現了使用者介面、演算法或個人化以及內容本身的綜合作用。因此，與去年及前幾年相比，我們現在能夠看到會員參與度更高，這非常令人興奮。

David, I wanted to circle back on churn. You -- we talked about the un-grandfathering churn. I'm just curious if you could sort of help investors understand how churn has evolved over time. And do you see meaningful opportunities to improve churn from here, and what specifically those opportunities might be?

大衛，我想再談談客戶流失的問題。你——我們討論過取消祖父條款導致的用戶流失問題。我只是好奇您是否能幫助投資者了解客戶流失率隨時間推移的演變。您認為從現在開始有哪些實際的機會來降低顧客流失率？具體來說，這些機會可能是什麼？

Well, we generally talk about net addition. Just because of fluidity of somebody coming back on the service, it's hard to parse the 2 pieces. I've made comments in the past that, generally, year-over-year churn has improved as we improve the service, as we add more content, as subscribers age up. But more and more, as our word of mouth and as we penetrate close to 50% in the U.S. today, those lines are fairly indistinct in terms of user rejoin or not, and somebody may have been a member of the service 12, 14, 18 months ago. So I would say in giving -- in answering the spirit of the question, we continue to improve the quality of the service with more content, with a better interface, all the things that Reed just talked about in terms of driving value to the middle and upper tier to have people choose and electively choose a more robust service. I'd say that continues. And then outside the U.S., as we age, we -- usually, the pattern there is to improve the quality of the library to better match the taste, and that includes both Western content for that local audience and a little bit of local content as well that Ted talked about earlier. So we expect to improve churn outside the U.S. as we get better and better in these markets.

我們通常談論的是淨增量。僅僅因為有人重新回到服務職位的情況比較靈活，就很難將這兩部分區分開來。我過去曾說過，一般來說，隨著我們改進服務、增加更多內容以及訂閱用戶年齡的增長，年度用戶流失率都會有所改善。但隨著我們的口碑傳播，以及如今我們在美國滲透率接近 50%，用戶是否重新加入之間的界限越來越模糊，有些人可能在 12、14、18 個月前就已經是該服務的成員了。所以，為了回答這個問題，我想說，我們將繼續透過提供更多內容、更好的介面等方式來提高服務質量，正如里德剛才提到的，所有這些都是為了給中高端用戶創造價值，讓他們主動選擇更強大的服務。我認為這種情況還會持續下去。而在美國以外，隨著我們年齡的增長，通常的做法是提高圖書館的質量，以更好地迎合人們的口味，這既包括面向當地觀眾的西方內容，也包括泰德之前提到的一些當地內容。因此，隨著我們在美國以外市場的業績越來越好，我們預計這些市場的客戶流失率也會有所改善。

Sticking with you, David, on the margin side, you've -- in the last letter and this letter, have talked about a 7% margin target this year and a modest expansion thereafter. Care to help investors out at all in terms of understanding what that pace of margin expansion might be relative to investment opportunities that you have?

大衛，關於利潤率方面，你在上一封信和這封信中都提到了今年 7% 的利潤率目標，以及之後適度擴張的目標。您能否幫助投資人了解，相對於您提供的投資機會，利潤率擴張的速度可能如何？

Well, we're focused on making the 7% this year. We know that we'll clarify that towards October. But we want to balance both growth of the business and reinvestment back in the business, given that we're seeing some great returns on that content, given the growth that we experienced this last quarter with sort of a disciplined growth of profit. We also know that you can't just hockey stick it in 3 to 5 years and expect the business to be in the right place. So I think it's a bit of a balance, and right now, that's 7% with sort of consistent and deliberate growth after that is the right guidance for our investors.

我們今年的目標是達到7%的殖利率。我們知道，我們會在十月之前澄清這一點。但我們希望在業務成長和業務再投資之間取得平衡，因為我們從這些內容中獲得了豐厚的回報，而且上個季度我們經歷了穩定成長的利潤。我們也知道，你不能指望在短短 3 到 5 年內就讓企業走上正軌。所以我認為這需要一些平衡，目前來看，7% 的成長率，之後保持穩定和穩定成長，是給我們的投資者的正確指導。

And Doug, if you remember, last year, we were at 4%. So you might be able to apply something there.

道格，如果你還記得的話，去年我們的成長率是 4%。所以你或許可以在那裡應用一些東西。

The -- Reed, appreciate that. What -- would it be helpful as well sort of reading the details a little bit out of David, is can you frame the margin progression in terms of where the leverage comes in the cost structure? Is it content side, the marketing side, G&A, tech and dev? Where should we see the most leverage in cost structure over time?

里德，謝謝你。另外，如果能從大衛那裡了解一些細節，例如你能否從成本結構中槓桿作用的角度來闡述利潤率的成長情況，這會很有幫助嗎？是內容方面、行銷方面、行政管理方面、技術開發方面嗎？隨著時間的推移，我們應該在成本結構的哪些方面獲得最大的槓桿作用？

Well, to date, it's really just been about as we expand globally and people watch a lot of the same content, Ted talked about the cost pressures in terms of as more people pile in at the top end of the market on the unit cost of content cost, but we've been able to grow even faster than that. So we're able to expand both our content spending and our margin at the same time because we're growing faster than that content. And we expect that to continue forward for the foreseeable future. We are leveraging marketing, we're spending more on an absolute basis on marketing as we become more and more of a media company, but on a percent-of-revenue basis, we're leveraging there. And G&A and tech and dev has kind of run a little bit in line with revenue as we expand internationally and as we become more of a full-fledged studio and a bigger and at-scale studio. So it's pressured there in terms of adding people. But I do anticipate the ability to leverage some of that down the road.

到目前為止，情況確實如此，隨著我們在全球範圍內擴張，人們觀看的內容也越來越多，Ted 談到了隨著越來越多的人湧入高端市場，內容單位成本上升帶來的成本壓力，但我們的增長速度甚至超過了這個水平。因此，我們能夠同時擴大內容支出和利潤率，因為我們的成長速度超過了內容的成長速度。我們預計這種情況在可預見的未來還會持續下去。我們正在加大行銷投入，隨著我們越來越像一家媒體公司，我們在行銷上的絕對支出也在增加，但從收入百分比來看，我們正在加大行銷投入。隨著我們在國際上擴張，並逐漸發展成為更成熟的、規模更大的工作室，G&A、技術和開發方面的支出基本上與收入保持一致。因此，在增加人手方面，那裡面臨壓力。但我確實預計將來能夠利用其中的一些優勢。

The free cash flow burn is certainly an interesting comment, and you mentioned it last quarter in the letter, you mentioned it this quarter in the letter. I think, similar to margins, investors are trying to read between the lines, understand how free cash flow burn might progress over the next few years. First, I think -- actually for you, Reed, why the comfort level with this level of negative free cash flow? And David, any sense you can give investors as to the carryforward at these elevated levels as they get better but take a while to get to breakeven? Any help would be appreciated.

自由現金流消耗確實是一個值得關注的問題，您在上個季度的信中提到過，這季度的信中也提到過。我認為，與利潤率類似，投資人正試圖解讀言外之意，了解未來幾年自由現金流消耗可能會如何發展。首先，我想問──實際上，里德，你為什麼能接受這種程度的負自由現金流？大衛，你能否向投資人說明一下，在目前高點的情況下，隨著市場好轉但需要一段時間才能達到損益平衡點，這些收益會有怎樣的預期？非常感謝您的幫忙。

Look, when we produce an amazing show like Stranger Things, that's a lot of capital up front, and then you get a payout over many years. And seeing the positive returns on that for the business as a whole is what makes us comfortable that we should continue to invest and integrate to basically self-develop many more properties as Ted can find the appropriate ones. And then there's comfort with being able to finance it, and of course, our debt-to-market cap is incredibly low and conservative, so we've got lots of room there. And I think that combination that it's spent well and we can raise it is what makes us very excited. And the irony is the faster that we grow and the faster we grow the owned originals, the more drawn on free cash flow that we'll be. So in some senses, negative free cash flow will be an indicator of enormous success.

你看，當我們製作像《怪奇物語》這樣精彩的劇集時，前期需要投入大量資金，然後你會在很多年裡獲得回報。看到這對整個業務帶來的正面回報，讓我們有信心繼續投資和整合，以便在 Ted 找到合適的房產後，自主開發更多房產。此外，融資能力也讓我們感到安心。當然，我們的債務市值比非常低，而且非常保守，所以我們在這方面還有很多空間。我認為，資金使用得當，而且我們還能籌集資金，這種組合讓我們非常興奮。諷刺的是，我們發展得越快，自有原創內容發展得越快，就越需要動用自由現金流。因此，從某種意義上說，負自由現金流將是巨大成功的標誌。

And then to annotate your second part of your question, like Reed said, this is a success scenario in the sense of as we scale, and if we're scaling faster, we're going to reinvest part of that back into the content, and that has implications on the cash side. So for us, as we've seen success with both the popularity of our owned originals, we've expanded into other content verticals. And as we scale faster, as we grow faster globally, that has implications. That said, we gave you an indication of around $2 billion this time. We've updated that to be between $2 billion and $2.5 billion. So you can think about that as a 10% to 15%. When you put that in line and compare that with our subscriber growth on the top line, then you kind of get some indication that we're still being very disciplined about the efficiency of our content cohort investments, and we're looking at how those shows perform over time. But if we have a bigger prize and if we see a bigger prize with the gross of the grow, that's going to have some implication on the cash flow side.

至於你問題的第二部分，就像里德說的那樣，這是一個成功的場景，因為隨著我們規模的擴大，如果我們擴大得更快，我們將把其中的一部分再投資到內容中，這會對現金方面產生影響。因此，鑑於我們自有原創內容的成功和受歡迎程度，我們已經擴展到其他內容領域。隨著我們規模擴大速度加快，全球成長速度加快，這將產生一些影響。也就是說，這次我們給的估算值約為 20 億美元。我們已將這一數字更新為 20 億美元至 25 億美元之間。所以你可以把它理解為 10% 到 15%。當你把這些數據與我們訂閱用戶成長的總額進行比較時，你會發現，我們仍然非常注重內容投資的效率，並且我們正在觀察這些節目隨著時間的推移表現如何。但是，如果我們有更大的獎金，如果我們看到成長帶來的總獎金更大，那將會對現金流方面產生一些影響。

A couple more for Ted, and then I think we'll wrap up with Reed. Ted, one question I get a lot is the investments in movies. And I think part of it is, with the TV series it's a brand that carries forward, there's year after year of episodes, versus one time for film, and some could be very expensive as well and (inaudible) approach. And I think, in the letter, you talked about you believe Internet TV can reinvigorate the film business. So one, thoughts in (inaudible) on your film strategy at this point; and two, any thoughts behind the statement in the letter would be helpful.

再給泰德安排幾個，然後我想我們就可以結束里德的採訪了。泰德，我常被問到的一個問題是關於電影投資的問題。我認為部分原因是，電視劇是一個可以延續下去的品牌，可以年復一年地播出劇集，而電影只有一次，而且有些電影的製作成本可能非常高，（聽不清楚）方法。而且我認為，你在信中談到，你相信網路電視可以重振電影產業。所以，第一，關於你目前的電影策略，你有什麼想法（聽不清楚）；第二，信中聲明背後的任何想法都會有所幫助。

Well, look, I -- we're doing a lot in the film space for a lot of the same reasons we're doing it in the television space, which is access to great content when consumers want it around the world. So we think it's a good investment. We're trying a lot of different things. Some of them work out great, some of them work out not so great, and we can learn from every single one of them. So we're going to continue to invest in that space because we can bring films to our members when they want them, which is when the world is talking about them. And it's almost impossible to do with a studio partner, so that's why we're pushing down that road. I think that in success, our films will be able to attract subscribers and retain our subscribers the way our series have, and that's why we're working so hard at it.

你看，我們在電影領域投入大量精力，原因與我們在電視領域投入大量精力的原因有很多相同之處，那就是讓世界各地的消費者都能隨時隨地獲取優質內容。所以我們認為這是一項不錯的投資。我們正在嘗試很多不同的方法。有些方法效果很好，有些方法效果不太好，我們可以從每個方法中學習。因此我們將繼續投資於這個領域，因為我們可以在會員想看電影的時候，也就是全世界都在談論電影的時候，為他們提供電影。而且與工作室合作夥伴合作幾乎不可能做到這一點，所以這就是我們努力走這條路的原因。我認為，如果我們的電影成功，就能像我們的劇集一樣吸引和留住訂閱用戶，這就是我們如此努力的原因。

Another question I get I think is just so noticeable is the investment you made in comedy. And we've talked about -- a bit about that last quarter, Ted, but is there something behind that strategy in terms of forming also relationships with comedians that also might be actors in TV shows and movies? Or is it simply ROI, so you keep investing more?

我常被問到的另一個問題，我覺得非常引人注目，那就是你在喜劇方面的投入。上個季度我們已經討論過一些相關內容了，泰德，但這種策略背後是否有一些原因，例如與那些也可能是電視節目和電影演員的喜劇演員建立聯繫？還是只是出於投資報酬率的考慮，所以你才會不斷追加投資？

Yes, the category's remarkably efficient, even at the premiums that you'd have to pay to get the superstar talent attached to them, because it gets a big audience. They get watched like movies. And just think about it that the main cost of them is the talent themselves versus the cost of production. And it's been also a great way to invest in content partners because, like Chris Rock, by way of example, is getting ready to shoot his special for Netflix. He is right now starring in the next Adam Sandler movie that's being shot right now in New York. So we're really excited about being able to work with great talent like Aziz Ansari, like we do with Chelsea across the entire platform whenever we can.

是的，即使需要支付高昂的費用才能請到超級明星加盟，這個類別仍然非常高效，因為它擁有龐大的觀眾群。它們像電影一樣被觀看。想想看，他們的主要成本是人才本身，而不是製作成本。而且，這也是投資內容合作夥伴的好方法，例如克里斯洛克，他正準備為 Netflix 拍攝他的特別節目。他目前正在紐約拍攝亞當桑德勒的下一部電影，並擔任主演。所以，我們非常高興能夠與像阿齊茲·安薩裡這樣的優秀人才合作，就像我們盡可能在整個平台上與切爾西合作一樣。

And shifting over to Reed, I noticed in the letter it said over 1 billion hours a week of viewing on the Netflix platform. Is that 1.1 billion or 1.2 billion?

再看看里德，我注意到信中提到，Netflix 平台每週的觀看時間超過 10 億小時。是11億還是12億？

And climbing. That's what we're working on.

還有攀登。這就是我們正在努力的方向。

And climbing. No, I think I want to wrap up with a couple of questions. First [leg] for Reed. I think you've already expressed your opinion quite clearly on net neutrality. But more broadly, if you look at regulatory environment globally, particularly in Europe, there appears to be an environment that is a challenge for American companies and certainly Google and Facebook. What's your approach to the regulatory environment given these challenges?

還有攀登。不，我想最後再問幾個問題。里德的第一站。我認為你已經非常清楚地表達了你對網路中立性的看法。但更廣泛地說，如果你放眼全球，特別是歐洲的監管環境，你會發現，對於美國公司，尤其是谷歌和臉書而言，監管環境似乎是一個挑戰。面對這些挑戰，您如何應對監管環境？

Well, first, on net neutrality, the recent effort that we participated in generated over 3 million additional comments to the FCC, demanding that the net neutrality rule stay in place, bringing the total to over 8 million comments. So certainly, we, other companies, the public have weighed in heavily. We'll see where that goes. When you look at Europe, were making big investments in local content, local productions, working well with local content companies. And so I think it'll be a really different dynamic, or we hope so, with Netflix than maybe with other firms because just of the business structure. We're able to take some great French and German and other content, Spanish this quarter, and share it around the world, and that creates big new markets. So think of us much more as trying to curate some of the world's best content and share it with the world, versus the moniker of being a disruptive tech company.

首先，關於網路中立性，我們最近參與的這項工作為聯邦通訊委員會 (FCC) 帶來了 300 多萬條額外評論，要求保留網路中立性規則，使評論總數超過 800 萬條。所以，我們、其他公司以及公眾當然都對此發表了大量意見。我們拭目以待。放眼歐洲，我們正在大力投資本地內容、本地製作，並與本地內容公司保持良好的合作關係。因此，我認為 Netflix 的發展動態將與其他公司截然不同，或者我們希望如此，這只是因為它的商業結構不同。我們能夠將一些優秀的法語、德語和其他語言的內容（本季還有西班牙語）分享到世界各地，這創造了巨大的新市場。所以，與其說我們是一家顛覆性的科技公司，不如說我們致力於甄選世界上最好的內容並與世界分享。

And the last question from me, you're talking a lot about the shift from linear TV to on-demand viewing. It's something that you talk a lot about, Reed. And you talk about how much leisure time and how many Internet TV services will be successful. And while that's all well and good, I imagine that Netflix will [have] to continue to be the leader in this category. So just final question is, Reed, how does Netflix sustain and expand its leadership position? Because while the market opportunity might be big, I'm sure you're busy executing every day.

最後一個問題，您一直在談論從線性電視到點播觀看的轉變。里德，你常常談到這個話題。你談到了有多少休閒時間以及有多少網路電視服務會取得成功。雖然這一切都很好，但我認為 Netflix 仍將繼續保持在該領域的領先地位。最後一個問題是，里德，Netflix 如何維持並擴大其領先地位？雖然市場機會可能很大，但我相信你每天都在忙於執行。

More watching, less sleep.

多看電視，少睡覺。

And what are you doing and what is Netflix specifically doing to make sure that Netflix uses that more watching, less sleep charge?

為了確保用戶觀看時間更長、睡眠時間更少，Netflix 採取了哪些具體措施？

Well, again, I'm not sure we are leading it when you look how far ahead YouTube is. Now you might say, well, it's different content, but it's still very engaging for the audience that's choosing it. But we're not really focused on like who's ahead in certain things. What we focus on is doing our best work. And Ted runs a lot of that with the content. We're doing amazing work in product, making it easy to use, fast. And then, finally, all this distribution agreements and marketing we're doing. So we're just improving around the whole company, growing what we have. And we're very excited about what we've accomplished, but what's ahead is also super exciting.

嗯，再說一遍，考慮到 YouTube 的領先優勢，我不確定我們是否真的處於領先地位。你可能會說，嗯，內容雖然不同，但對於選擇觀看的觀眾來說，它仍然非常吸引人。但我們並不真正關注誰在某些方面領先。我們專注於做到最好。泰德在內容方面做了很多工作。我們在產品方面做得非常出色，使其易於使用且速度很快。最後，還有我們正在進行的所有這些分銷協議和行銷工作。所以我們正在對整個公司進行改進，以發展壯大我們現有的資源。我們為已取得的成就感到非常興奮，但未來的發展也同樣令人無比激動。

Thank you all very much.

非常感謝大家。

Thank you, Doug.

謝謝你，道格。

Thanks, Doug.

謝謝你，道格。

Thanks, Doug.

謝謝你，道格。