Netflix Inc (NFLX) 2019 Q2 法說會逐字稿

Good afternoon, and welcome to the Netflix Q2 2019 Earnings Interview. I'm Spencer Wang, VP of IR and Corporate Development. Joining me today are CEO, Reed Hastings; CFO, Spence Neumann; Chief Content Officer, Ted Sarandos; and Chief Product Officer, Greg Peters. Our interviewer this quarter is Mike Morris from Guggenheim.

下午好，歡迎來到 Netflix 2019 年第二季財報採訪。我是 Spencer Wang，IR 和企業發展副總裁。今天加入我的是執行長 Reed Hastings；財務長史賓塞‧諾依曼；首席內容官 Ted Sarandos；首席產品長 Greg Peters。本季我們的訪談者是來自古根漢的麥克莫里斯。

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

提醒一下，我們將做出前瞻性陳述，實際結果可能會有所不同。

With that, let me turn it over to Mike for his first question.

接下來，讓我把第一個問題轉交給麥克。

Thank you, Spencer. Good afternoon. Let's jump right into the results and the member variance from guidance in particular. What changed during the quarter versus the outlook that you provided that made such a significant impact this quarter? And you did mention the content being perhaps a factor. I think that's really something we haven't focused on in the past in terms of driving the cyclicality, so maybe if could you talk about those things.

謝謝你，史賓賽。午安.讓我們直接進入結果，特別是成員與指導的差異。與您提供的前景相比，本季發生了什麼變化，對本季產生瞭如此重大的影響？你確實提到內容可能是一個因素。我認為這確實是我們過去在推動週期性方面沒有關注的事情，所以也許你可以談談這些事情。

When we're forecasting, Mike, in the beginning of the quarter, we make our best estimate. And as you can see over the past 3 years, sometimes we're -- we forecast high. Sometimes we forecast low. This was one where we forecasted high. There was no one thing.

麥克，當我們在季度初進行預測時，我們會做出最佳估計。正如你在過去三年中所看到的，有時我們的預測很高。有時我們的預測很低。這是我們預測很高的地方。沒有一件事。

And if I think about 3 years ago, we were also light, and we never really were confident of the explanation. Then, we were $2 billion in quarterly revenue. Now we're going $5 billion. And so it is easy to over-interpret the quarter membership adds, which are a bit noisy. So for the most part, we're just executing forward and trying to do the best forecast we can.

如果我想想三年前，我們也很輕，我們從來沒有真正對這個解釋充滿信心。然後，我們的季度收入為 20 億美元。現在我們要投入 50 億美元。因此，很容易過度解讀季度會員數量的增加，這有點吵雜。因此，在大多數情況下，我們只是向前執行並盡力做出最佳預測。

Do you want to add anything to that, Spence?

史賓塞，你想補充什麼嗎？

Yes. Thanks, Reed. Maybe I'd just add the fact that when we think about those paid net add forecast, it's really about the marginal growth, Mike. On a subscriber base, it's over 150 million members, so we're talking about plus or minus 1%, 2%, 3% in growth rates on subscribers on an annual basis that are growing over 20%. So if we look at the trailing 12 months, we grew our member base by over 27 million members. If you take that forward to where we think we'll be at the end of Q3, we think we'll be, on a trailing 12-month basis, over 28 million members. So we're really playing for the sustained increase in growth in our membership over time, and there'll be some quarter-by-quarter choppiness along the way based on things like seasonality and content slate and so forth.

是的。謝謝，里德。也許我只是補充一個事實，當我們考慮那些付費淨增加預測時，它實際上與邊際增長有關，麥克。在訂戶基礎上，它有超過 1.5 億會員，所以我們談論的是訂戶每年正負 1%、2%、3% 的成長率，成長率超過 20%。因此，如果我們看看過去 12 個月，我們的會員數量增加了超過 2700 萬。如果你把這個數字推到我們認為的第三季末的水平，我們認為在過去 12 個月的基礎上，我們的會員數量將超過 2800 萬。因此，隨著時間的推移，我們確實致力於會員數量的持續成長，並且基於季節性和內容板等因素，在此過程中會出現一些季度波動。

Can you provide a little more detail perhaps on the gross add versus the churn dynamic in the quarter, including -- there's the pricing dynamic I want to get to as well, but maybe if we just back up and look at gross adds versus churn and how that resulted in the net.

您能否提供更多有關本季度總增加與流失動態的詳細信息，包括——我也想了解定價動態，但也許如果我們只是備份並查看總增加與流失動態以及這是如何產生網絡的。

Yes. Sure. I mean generally when we looked at it, the slowdown in subscriber growth was across all of our regions. So you talk about our kind of top of funnel or gross adds, we saw that slowdown across the board, which indicates to us some level of seasonality and kind of the overall, as we say, the kind of timing of the content slate. And also, frankly, maybe a little bit more pull forward of our subscriber growth from Q2 to Q1 because we had such a strong Q1 with 9.7 million paid net adds. But we also did see -- in regions where we increased prices, we did see some elevated churn rates and lower retentions. So it was a combination of those 2 things. We think the primary story was around seasonality and timing and nature of our content slate, but pricing played a factor.

是的。當然。我的意思是，總的來說，當我們觀察時，我們所有地區的用戶成長都在放緩。因此，當你談論我們的漏斗頂部或總增加時，我們看到了全面放緩，這向我們表明了一定程度的季節性和總體情況，正如我們所說，內容板的時間安排。而且，坦白說，從第二季度到第一季度，我們的用戶成長可能會增加，因為我們第一季的付費淨增加量非常強勁，達到 970 萬。但我們也確實看到，在我們提高價格的地區，我們確實看到客戶流失率上升，而保留率卻有所下降。所以這是這兩件事的結合。我們認為主要的故事是關於我們內容的季節性、時間安排和性質，但定價也是一個因素。

Now the good news in all of that, as you saw, Mike, I think in the letter is that in the first couple of weeks of Q3, that growth has reaccelerated again. We're seeing both that top of funnel growth in acquisitions. We're also seeing improvement in those churn rates and retention back down towards those pre-price change levels. So overall, encouraged with the trends.

現在，正如你在信中看到的那樣，麥克，我認為所有這些方面的好消息是，在第三季的前幾週，成長再次加速。我們看到了漏斗頂部的收購成長。我們也看到客戶流失率和保留率有所改善，回到了價格變動前的水準。總的來說，趨勢令人鼓舞。

And with regard to that pricing piece too, it's worth kind of reminding ourselves it's all -- that's all very revenue accretive. So while there may be some short-term slowdown in subscriber growth because of pricing, that increased revenue is very good for our business and ultimately for our members because we reinvest the bulk of that back into great content and great product experience for our members.

關於定價部分，值得提醒自己的是，這一切都非常能增加收入。因此，雖然由於定價的原因，訂戶成長可能會出現一些短期放緩，但收入的增加對我們的業務以及最終對我們的會員來說非常有利，因為我們將大部分收入重新投資到為我們的會員提供優質內容及優質產品體驗上。

Can we talk a little bit about that pricing cycle and where we are right now? So 2 things, I guess, specifically in the U.S. by June, the entire membership base seeing that price increase such that there wouldn't be a lagging impact in the September quarter. And then internationally, obviously it's much broader. Can you highlight any particular markets, anything you can help us size the portion of your member base that is processing through those pricing increases?

我們可以談談定價週期以及我們現在的位置嗎？所以，我想有兩件事，特別是在美國，到 6 月份，整個會員基礎都看到價格上漲，這樣就不會在 9 月份的季度產生滯後影響。然後在國際上，顯然它的範圍要廣泛得多。您能否重點介紹任何特定市場，以及您可以幫助我們確定正在處理這些價格上漲的會員群比例的任何內容？

Greg, do you want to take that or do you want me to take it?

格雷格，你想要那個還是我想要？

I'm happy to do that. So I mean in the U.S. situation, we're through all those notifications. Obviously in the international perspective, we've got different markets in different places. But I would say just in terms of helping you size that, I mean we've built obviously that into our forecast for our Q3, so those effects we've already tried to account for and categorize in that forecast.

我很高興這樣做。所以我的意思是，就美國的情況而言，我們已經完成了所有這些通知。顯然，從國際角度來看，我們在不同的地方有不同的市場。但我想說的是，就幫助您確定這一點而言，我的意思是我們顯然已將其納入對第三季度的預測中，因此我們已經嘗試在該預測中考慮和分類這些影響。

Okay. Great. And then, Spence, one other question with respect to the letter in the outlook. It's the second consecutive quarter you've come ahead in operating income relative to your guide. You're maintaining the same full year guidance. I know that you've referenced the marketing, but help us there with, again, maybe why the timing. From your perspective, forecasting hasn't been as clear given that it feels that you would know when certain marketing was coming through.

好的。偉大的。然後，斯彭斯，還有一個與展望中的信有關的問題。這是您的營業收入連續第二季高於預期。您將維持相同的全年指導。我知道你已經提到了行銷，但請再次幫助我們，也許為什麼要選擇這個時機。從您的角度來看，預測還沒有那麼明確，因為您感覺您會知道某些行銷活動何時進行。

Well, it's marketing we have -- and Ted should chime in, too -- but we have some discretion as to when we choose to support titles. And so we're really -- when you look at the back half content slate that we have, we're very excited about -- with Stranger Things 3 already launching, but then shows like Casa de Papel and Crown and big movies in the fourth quarter and money -- sorry, I already mentioned Money Heist, sorry. But there's just -- there's a lot of content to support, so I think it was just really discretion of the team to move some and shift some of that marketing spend into later -- to the latter half of the year.

嗯，這是我們的行銷——特德也應該插話——但我們在選擇何時支持遊戲方面有一定的自由裁量權。因此，當你看到我們擁有的後半部分內容時，我們真的感到非常興奮，《怪奇物語 3》已經推出，但接下來還有《紙鈔屋》和《皇冠》等節目以及大電影。第四季和金錢——抱歉，我已經提到了金錢搶劫，抱歉。但有很多內容需要支持，所以我認為團隊確實可以酌情決定將一些行銷支出轉移到下半年。

Okay. So with some of these pressing topics covered a bit, Reed, usually we'll start with an overview question. And so I guess, we're halfway through the year now, this dynamic perhaps aside, any change to your view of the business strategically overall? And I guess embedded in that is touching on that question of your confidence about the growth outlook going forward, and why an investor shouldn't look at this quarter and say perhaps the business is approaching maturity more quickly than we anticipated.

好的。因此，里德，隨著其中一些緊迫主題的討論，我們通常會從一個概述問題開始。所以我想，今年已經過半了，除了這種動態之外，您對整體業務策略的看法有什麼變化嗎？我想這其中涉及到你對未來成長前景的信心問題，以及為什麼投資人不應該在看本季時說，也許業務比我們預期的更快接近成熟。

Yes. I mean if you look over the past 12 years that we've been streaming, in the beginning, there was Hulu and Amazon and YouTube and Netflix and we've all been growing at tremendous rates over the last 12 years. And now it's really catching on in a big way around the world and we're having a lot of new competitors enter over the next year. And I think our position is excellent. We're building amazing capacity for content. Our products have never been in better shape. Our rate of investment is extremely high. So if investors believe in Internet television, which I think is an easy one to get there, then our position in that market is very strong. And all of the key things are coming our way in terms of, again, stronger content and a stronger service.

是的。我的意思是，如果你回顧過去 12 年我們的串流媒體業務，一開始有 Hulu、亞馬遜、YouTube 和 Netflix，在過去 12 年裡我們都在以驚人的速度成長。現在它在世界範圍內真正流行起來，明年我們將有很多新的競爭對手加入。我認為我們的地位非常好。我們正在建立驚人的內容容量。我們的產品從未處於如此良好的狀態。我們的投資率非常高。因此，如果投資者相信網路電視（我認為這是很容易實現的），那麼我們在該市場的地位就非常牢固。所有關鍵的事情都在向我們襲來，再次強調，更強大的內容和更強大的服務。

And Mike, if I could just add on your topic of maturation, I would just also point out that revenue growth did accelerate by 400 basis points in Q2 versus Q1. If you look at our guidance as well for Q3, I think you'll see that trend continue as well. So financially, I think that's actually a sign that things are picking up or continuing to grow very steadily.

麥克，如果我可以補充您的成熟主題，我還想指出，第二季的營收成長確實比第一季加快了 400 個基點。如果您也看看我們第三季的指導，我想您也會看到這種趨勢仍在繼續。因此，從財務角度來看，我認為這實際上是一個跡象，表明事情正在好轉或繼續穩定成長。

Great. Thank you for that.

偉大的。謝謝你。

I'd also just add too, on a similar or in the same vein, is on a show-by-show or film-by-film basis, we're also seeing -- hitting new heights in terms of viewer penetration and audience reach as well.

我還想補充一點，以類似或同樣​​的方式，在逐個節目或逐部電影的基礎上，我們也看到——在觀眾滲透率和觀眾方面達到了新的高度也達到。

Okay. Okay. Great. Let's expand the discussion a little bit. Greg, over the past year plus, we've talked about some of the partnerships that Netflix has struck with the traditional video and wireless providers. I understand each can be different. There can be different accounting treatments. But perhaps can you give us an overview right now where we are on partnerships, perhaps domestically in particular, how they're impacting the business? Did they have any impact during the quarter? Of course. But just in general, what do we look like in terms of those impacting and where we might go from here?

好的。好的。偉大的。讓我們稍微擴大一下討論範圍。Greg，在過去的一年多里，我們討論了 Netflix 與傳統視訊和無線供應商建立的一些合作夥伴關係。我知道每個人都可能有所不同。可以有不同的會計處理。但也許您能給我們概述一下我們現在的合作關係，也許特別是在國內，它們對業務有何影響？它們對本季有影響嗎？當然。但總的來說，就影響因素而言，我們是什麼樣的？我們可能會走向何方？

Sure. So yes, there's a long history of these partnerships starting back with sort of the simple device integrations back to the Xbox and Sony PlayStation, but the latest incarnation as we sort of added more capability to each partnership from just the simple device integrations and being able to access the experience, this sort of payment integration and things like that is this bundling that we are doing with pay-TV operators, with mobile operators. And to characterize where we are, we're still fairly early in that process, I would say, from a global perspective. But the bundles that we are doing are nice incremental accelerants to our acquisition, especially into a user population that may not be as tech forward as the folks that sign up with us directly. They may not have a Smart TV connected to the Internet at home, they may not have an adapter product like a Roku or an Amazon Fire TV, but they do have a set-top box from their pay-TV operator, and if we can put the Netflix application in a nice seamless integration into that set-top box. If we can then include the actual subscription to Netflix as part of their pay-TV offering as a bundle, then it makes it super simple for those folks to be able to get the same kind of experience that our subscribers who sign up with us directly do and get the same benefits.

當然。所以，是的，這些合作夥伴關係有著悠久的歷史，可以追溯到Xbox 和索尼PlayStation 的簡單設備集成，但最新的體現是，我們為每個合作夥伴添加了更多功能，從簡單的設備集成到能夠為了獲得體驗，這種支付整合以及類似的事情就是我們與付費電視營運商和行動電信商進行的捆綁。為了描述我們所處的位置，我想說，從全球角度來看，我們仍處於這個過程的早期階段。但我們正在做的捆綁服務對我們的用戶獲取來說是一個很好的增量促進劑，特別是對於那些可能不像直接與我們簽約的用戶那樣技術先進的用戶群體。他們家裡可能沒有連接到互聯網的智慧電視，他們可能沒有 Roku 或 Amazon Fire TV 等適配器產品，但他們確實有付費電視運營商提供的機上盒，如果我們可以的話將Netflix 應用程式完美地無縫集成到機上盒中。如果我們可以將 Netflix 的實際訂閱作為捆綁包包含在他們的付費電視產品中，那麼這些人就能非常簡單地獲得與直接向我們註冊的訂閱者相同的體驗做並獲得同樣的好處。

So we're going to continue to expand those. We've got tons of opportunity, I'd say, globally, around the world, to add more and more partnerships, so we're still fairly early stages there. But I also -- our perspective is that we anticipate that, that bundle acquisition channel is a nice supplemental incremental component, but a minority component of our overall subscriber acquisition process.

因此，我們將繼續擴大這些範圍。我想說，在全球範圍內，我們有大量的機會來增加越來越多的合作關係，所以我們仍處於相當早期的階段。但我也 - 我們的觀點是，我們預計捆綁獲取管道是一個很好的補充增量組件，但只是我們整個訂戶獲取流程的少數組成部分。

Okay. Let's turn a little internationally as well, Ted. Prior to the results today, data that we had seen indicated some strength in particular markets have seen content-driven strength in France and Germany in particular in Europe; Japan, South Korea in Asia. Curious if you could characterize any particular markets that -- I realize you mentioned the relative weakness. The guide was across the board. But any particular markets seeing more of a tailwind right now, particularly a content-driven tailwind?

好的。讓我們也轉向國際化一點，泰德。在今天的結果公佈之前，我們看到的數據表明，法國和德國（尤其是歐洲）的內容驅動型市場在某些特定市場表現強勁；亞洲的日本、韓國。很好奇您是否可以描述任何特定市場的特徵——我知道您提到了相對弱勢。該指南是全面的。但現在是否有任何特定市場看到了更多的順風，尤其是內容驅動的順風？

Well, one that we're going to be looking for starting this week is going to be La Casa de Papel that Spencer just mentioned. This is our largest non-English show, which you had to span the place throughout the world at a very high level. We also have Elite and Chicas del Cable from Spain that are enormously popular shows, and new seasons coming in the quarter. And Sacred Games from India, which was a big driver for us in its first season, dropping a new season this quarter as well. And in the past 3 months with the release out of Germany of How to Sell Drugs Online, The Rain season 2 from Denmark and Quicksand from Sweden, what's been amazing is they've been deeply relevant in the home country, traveled the region very, very well and have found global audiences. So the 3 shows I just mentioned from Germany, Denmark and Sweden have 12 to 15 million global watchers. So we're seeing some real locally, regionally and globally relevant content coming from all over the world.

好吧，我們從本週開始要尋找的一個是 Spencer 剛剛提到的 La Casa de Papel。這是我們最大的非英語演出，你必須以很高的水平跨越世界各地。我們還有來自西班牙的《Elite》和《Chicas del Cable》，它們都是非常受歡迎的節目，新一季也將在本季推出。來自印度的《Sacred Games》在第一季中是我們的一大推動力，本季也推出了新賽季。在過去的3 個月裡，隨著《如何在線銷售毒品》在德國的上映、丹麥的《雨》第二季和瑞典的《流沙》的上映，令人驚訝的是，它們與祖國有著密切的關係，並在該地區進行了廣泛的傳播，非常好，並找到了全球觀眾。所以我剛才提到的德國、丹麥和瑞典的3個節目在全球有12到1500萬觀眾。因此，我們看到了來自世界各地的一些真實的本地、區域和全球相關內容。

Great. And you mentioned India, always a topic we like to dive a bit more into because of the size of the market, of course. So I guess for Ted and for Greg also, in this market in particular, as we approach the second season of Sacred Games, a bit of a milestone, where are we on the content offering? I think you've referenced some other markets where you can start with an original and get some traction, but you really need a certain amount of bulk to offer there. So where are we in the content offering in India? I also know you mentioned or I have seen reference of 5 other shows, particularly series or projects that we have a green light.

偉大的。您提到了印度，當然，由於市場規模龐大，我們一直希望深入探討這個主題。所以我想對於泰德和格雷格來說，特別是在這個市場上，當我們接近《神聖遊戲》第二季時，這是一個里程碑，我們在內容提供方面處於什麼位置？我認為您已經提到了其他一些市場，您可以從原創產品開始並獲得一些吸引力，但您確實需要在那裡提供一定量的批量產品。那麼我們在印度的內容供應方面處於什麼位置呢？我也知道你提到或我看過其他 5 個節目的參考，特別是我們批准的系列或項目。

And then, Greg, perhaps tied in with the question about product pricing, you made a reference in the letter to some new pricing. Can you talk a little bit more about both the product and pricing in India in particular?

然後，格雷格，也許與產品定價問題有關，你在信中提到了一些新的定價。能多談談印度的產品和定價嗎？

Yes. Before we get into pricing, the only thing I would add is that our -- we announced 5 new originals for India. The one we're also really excited about later on this year is Baahubali, which is our first step into a really large-scale Indian original film. It's based on a film that was hugely popular a year ago, and this is a series prequel/sequel model that we think is going to be incredibly popular in India. And we've been seeing steady -- nice steady increases in engagement with our Indian viewers that we think we can keep building on. Growth in that country is a marathon. So we're in it for the long haul and we're seeing nice steady progress.

是的。在我們討論定價之前，我唯一要補充的是，我們宣布了 5 款針對印度的新原創產品。今年稍後我們也非常興奮的是《巴霍巴利王》，這是我們邁向真正大型印度原創電影的第一步。它是根據一年前非常受歡迎的一部電影改編的，這是一個系列前傳/續集模型，我們認為它將在印度非常受歡迎。我們看到印度觀眾的參與度穩定成長，我們認為我們可以繼續努力。那個國家的成長是一場馬拉松。因此，我們將長期投入其中，並且我們看到了良好的穩定進展。

So as we're expanding that content offering and seeing that engagement grow, we think that there's an opportunity then to be able to broaden the access to the service and so more people can enjoy that increasingly relevant content offering. So that's clearly the motivator behind adding this mobile tier offering, which we think is going to be a lower price point. In a market where the typical pay-TV package is under $5, we think we need to have a lower price offering to improve the accessibility, but also one that complements the existing tiering structure that we have. So that's the primary motivator for that move, so we can broaden the audience that can love that content, enjoy that content that Ted's team is making. And that's great because like when we launched Sacred Games season 2, when you have a bigger audience for it, that means we can create more social buzz and more excitement about that show. So we're doing that. We're also working on the partnerships we have in the market because we think there's specific opportunities to improve accessibility via those partnerships as well.

因此，當我們擴大內容提供並看到參與度成長時，我們認為有機會擴大服務的存取範圍，以便更多的人可以享受日益相關的內容提供。因此，這顯然是添加此移動層產品背後的動機，我們認為這將是一個較低的價格點。在典型的付費電視方案價格低於 5 美元的市場中，我們認為我們需要提供更低的價格來提高可近性，同時也需要補充我們現有的分層結構。因此，這是這項舉措的主要動機，讓我們可以擴大喜歡該內容、享受 Ted 團隊正在製作的內容的受眾。這很棒，因為就像我們推出《神聖遊戲》第二季一樣，當你擁有更多的觀眾時，這意味著我們可以為該節目創造更多的社交熱度和更多的興奮感。所以我們正在這樣做。我們也正在努力建立我們在市場上的合作夥伴關係，因為我們認為透過這些合作夥伴關係也有改善可及性的特定機會。

Great. And Reed, broader question. How do you view your potential subscriber base globally? I think a lot of us use the sort of broadband -- connected broadband marketplace, but how do you see it? I would imagine you see it as larger than that. And historically, you've given us the 60 million to 90 million member outlook for the U.S. Would you be willing to put some parameters on what you think the global opportunity could be? Or why wouldn't you?

偉大的。里德，更廣泛的問題。您如何看待全球潛在的訂戶群？我認為我們很多人都使用寬頻——連接寬頻市場，但你如何看待它？我想你會看到它比那更大。從歷史上看，您向我們提供了美國 6000 萬至 9000 萬會員的前景。您願意對您認為的全球機會提出一些參數嗎？或者為什麼不呢？

Well, we do wonder, in the fullness of time, can we be as big as YouTube? YouTube is 7x larger than us roughly in viewing hours and a phenomenal service. Of course, it's free. So the real question is can we produce enough content that people are willing to pay for. If you look at benchmarks, it's about 700 million households that pay for television outside of China, so that would be kind of the equivalent of the U.S., 100 million, so that's one established market.

好吧，我們確實想知道，當時間成熟時，我們能否像 YouTube 一樣強大？YouTube 的觀看時間大約比我們大 7 倍，而且服務非常出色。當然，它是免費的。所以真正的問題是我們能否製作出足夠人們願意付費的內容。如果你看一下基準，你會發現中國境外約有 7 億家庭為電視付費，這相當於美國的 1 億家庭，所以這是一個成熟的市場。

Now do we have enough content in each of those countries? Most of that is local content that gets consumed. But the Internet is capable of some very large customer bases, as you I'm sure well know. So we'll just take it year-by-year and try to have our net adds continue to grow. We still think our net adds this year will be larger than last year. We'll keep pushing on that. And what we want to do is just grow the net ads every year and then the future takes care of itself.

現在我們在每個國家都有足夠的內容嗎？其中大部分是被消費的本地內容。但網路能夠擁有一些非常大的客戶群，我相信您也很清楚。因此，我們將年復一年地努力讓我們的淨增加繼續增長。我們仍然認為今年的淨增量將大於去年。我們將繼續推動這一點。我們要做的就是每年增加網路廣告，然後未來就會水到渠成。

Great. I want to talk about a couple of broader strategic topics here. Reed, in the past, you've clearly stated that you view your competition for consumers' time pretty broadly, sleep, video games, et cetera. The financial press though loves this concept of streaming wars between Netflix and a number of existing and new platforms. So do you think that streaming wars is a fairer characterization of what the future holds for Netflix and for video entertainment?

偉大的。我想在這裡討論幾個更廣泛的戰略主題。里德，過去您曾明確表示，您對消費者時間的競爭非常廣泛，包括睡眠、電玩遊戲等等。不過，財經媒體很喜歡 Netflix 與許多現有和新平台之間的串流戰爭這一概念。那麼，您認為串流媒體戰爭更能準確地描述 Netflix 和視訊娛樂的未來嗎？

Yes. I mean high level, it is. Certainly, all of Ted's world is very competitive. It's never been a better world for talent. They get to bid themselves off between us, Disney, Amazon, et cetera. So there's a real battle for who will pay for content around the world, but it's not a zero-sum competition. I think everybody gets that people will subscribe to multiple shows. Add wage with it, most Netflix employees are HBO subscribers. We love the content they do and that spurs us on to want to be even better. So it's a great competition that helps grow the industry. And the advantage of having something catchy like the streaming wars is it draws more attention. And because of that, people, consumers shift more quickly from linear TV to the streaming TV.

是的。我的意思是高水平，確實如此。當然，泰德的世界充滿了競爭。對人才來說，這是一個從未有過的美好世界。他們可以在我們、迪士尼、亞馬遜等之間競價。因此，世界各地存在著一場真正的誰將為內容付費的鬥爭，但這並不是一場零和競爭。我想每個人都知道人們會訂閱多個節目。再加上薪資，大多數 Netflix 員工都是 HBO 的訂閱者。我們喜歡他們所做的內容，這激勵我們想要做得更好。因此，這是一場有助於產業發展的偉大競爭。像串流媒體戰爭這樣吸引人的東西的好處是它能吸引更多的注意力。正因為如此，人們、消費者更快從線性電視轉向串流電視。

Great. Greg, over the past 12 months, you've spent -- the company spent approximately $1.5 billion on technology. I mean a couple of specific questions. First, can you help us understand sort of the scalable part of that spend versus the incremental part of that spend? And maybe to the extent you can quantify, Greg, to the extent you can perhaps talk about the types of things that would fit into 1 of those 2 buckets, that would be great.

偉大的。Greg，在過去 12 個月裡，公司在技術上花費了約 15 億美元。我的意思是幾個具體問題。首先，您能否幫助我們了解該支出的可擴展部分與增量部分？格雷格，也許你可以量化，如果你可以談論適合這兩個桶中的一個的事物類型，那就太好了。

And I think also a question that we get is really how your technology spend can be a competitive advantage in this competition for subscribers. So is there anything you can point to from the consumer perspective where you really feel like it's -- whether we see it or we just enjoy it, that separates the Netflix platform from the competition now?

我認為我們遇到的另一個問題是，您的技術支出如何在這場訂閱者競爭中成為競爭優勢。那麼，從消費者的角度來看，有什麼東西能讓你真正感受到——無論我們看到它還是只是享受它——讓 Netflix 平台在競爭中脫穎而出？

Yes. There's a lot there, so let me try and take it piecewise. I would say the majority of that spend we would say is a fixed cost investment which returns increasing benefits at scale. So as we grow our business, we get higher leverage off that fixed cost investment. There is a small portion of that, that I would say is sort of incremental to how we scale that -- you can think of that as either on the deliveries cost side. We seek to invest on the content delivery side to make that more efficient, so that's a fixed cost, but then we obviously have certain elements of that cost which just scales as we grow the business as we deliver more streams, right?

是的。那裡有很多東西，所以讓我試著分段來看。我想說的是，我們所說的大部分支出都是固定成本投資，它會大規模地帶來不斷增加的收益。因此，隨著我們業務的發展，我們從固定成本投資中獲得了更高的槓桿。我想說其中一小部分是我們擴展規模的增量——你可以將其視為交付成本方面。我們尋求在內容交付方面進行投資，以提高效率，因此這是固定成本，但顯然我們有某些成本要素，隨著我們交付更多串流媒體的業務發展，這些成本會不斷擴大，對嗎？

But a couple of examples on this so you can see the benefits from a consumer perspective, just to pick a few. So one is when we think about sort of our encode efficiency. And this is how we actually take the moving pictures that our creators produce and then reduce them into a digital form so that we can actually deliver them to a variety of different clients, a variety of different devices around the world in a wide, wide range of network conditions back to like gigabit-plus, constant, reliable all the way to super flaky networks that we see in markets, let's say, in a mobile environment. And so we try and make that encoding process so good that pretty much we are maximizing the capability that we have, the connection that we have to any given consumer in that wide range of environments at any point in time. So obviously, that's the consumer benefit is realizing just a good quality picture experience and more engagement, more compelling immersiveness in the content. So that would be an example on that kind of fixed cost return.

但有幾個例子可以讓您從消費者的角度看到好處，僅舉幾個例子。因此，當我們考慮編碼效率時。這就是我們實際拍攝創作者製作的動態圖片，然後將其轉化為數位形式，以便我們可以將它們實際交付給世界各地各種不同的客戶、各種不同的設備。網路條件恢復到千兆以上、穩定、可靠，一直到我們在市場（比如說行動環境）中看到的超級不穩定網路。因此，我們嘗試使編碼過程變得如此出色，以至於我們幾乎可以最大限度地發揮我們所擁有的能力，以及我們在任何時間點在廣泛的環境中與任何給定消費者的聯繫。顯然，消費者的利益就是實現優質的圖片體驗和更多的參與度，更引人注目的沉浸式內容。這就是這種固定成本回報的一個例子。

And Greg, about how many AV tests do you guys have running currently?

Greg，你們目前正在執行多少 AV 測試？

So let's say, in a year, we'll run, let's say, 400 is a good benchmark. And these are situations where we're -- we have a theory, a hypothesis of how do we present a better experience which is more compelling to our users which gives them a better experience, more engagement. And we'll test it out and then based on how the users actually use the service, we'll determine if that hypothesis was correct or not. And obviously, the ones that work, that are a better experience will roll out largely to our whole universe typically of users around the world.

假設一年後，我們將運行 400 是一個很好的基準。在這些情況下，我們有一個理論和假設，即我們如何呈現更好的體驗，對使用者更具吸引力，從而為他們提供更好的體驗和更多的參與。我們將對其進行測試，然後根據使用者實際使用該服務的方式，我們將確定該假設是否正確。顯然，那些有效的、更好的體驗將主要推廣到我們的整個宇宙，特別是世界各地的使用者。

Great. Another -- a place you didn't quite mention was the user interface itself. We do get questions about discovery and particularly with all the content that's being invested in. There's a survey that I just read about from Nielsen. 2/3 of streaming users know what they want to watch when they go to the service, but another 1/3 look and they spend 8 to 10 minutes, according to the survey, looking for something to watch. So that's my question for you. Does that seem right based on anything you've seen? But also, is that a good thing or a bad thing? And where is the interface, from your perspective, to making that great?

偉大的。另一個你沒有完全提到的地方是使用者介面本身。我們確實收到了有關發現的問題，特別是有關正在投資的所有內容的問題。我剛剛讀到尼爾森的一項調查。調查顯示，2/3 的串流媒體用戶在使用該服務時知道自己想看什麼，但另外 1/3 的用戶會花 8 到 10 分鐘來尋找可看的內容。這就是我要問你的問題。根據您所看到的一切，這看起來正確嗎？但同時，這是好事還是壞事？從您的角度來看，實現這一目標的介面在哪裡？

Sure. I mean we obviously track those numbers. We have our own metrics that we use around how our members engage with the service, how much time they spend in the discovery process, et cetera. So we have our own view on that. And I think the Nielsen numbers are -- they're a good sound-bite, but don't reflect the typical experience. And I would say generally, I think we're doing a pretty good job as evidenced by sort of our growth in engagement and general growth in subscribers.

當然。我的意思是我們顯然在追蹤這些數字。我們有自己的指標，用於衡量我們的會員如何參與服務、他們在發現過程中花費的時間等等。所以我們對此有自己的看法。我認為尼爾森的數字是——它們是一個很好的摘要，但並不能反映典型的體驗。我想說，總的來說，我認為我們做得相當不錯，我們的參與度成長和訂閱者的整體成長就證明了這一點。

Now having said that, we're bringing a tremendous number of titles to the service and many titles which people don't know, they haven't heard of before. So we have an opportunity to continually improve and get better and better in how we present the right titles to the right audience and in a way which is meaningful to them, which explains to them why a show is relevant to them and gets them excited about watching that. And so a lot of those 400, call it, AV tests that we run in a year are around trying to figure out how do we do a better job at that. And we have a healthy road map of good ideas about how to make that better and better, and we're excited about that. We think that, that is a competitive advantage. If we do a good job there, we can deliver a better service experience that unlocks the value of our content library in a more effective way.

話雖如此，我們正在為該服務帶來大量的遊戲，其中有許多人們不知道、以前從未聽說過的遊戲。因此，我們有機會不斷改進，並在如何以對他們有意義的方式向正確的觀眾展示正確的標題方面做得越來越好，這向他們解釋了為什麼節目與他們相關並讓他們感到興奮看著那個。因此，我們在一年內進行的 400 次 AV 測試中，有很多測試都是圍繞著試圖弄清楚我們如何在這方面做得更好。我們有一個健康的路線圖，其中包含關於如何使其變得越來越好的好想法，我們對此感到興奮。我們認為，這是一種競爭優勢。如果我們在這方面做得好，我們就可以提供更好的服務體驗，以更有效的方式釋放我們內容庫的價值。

Great. Great. Okay. So I want to talk about some key content-related items. And I think we know the well-publicized topics that I want to get to. But first, Ted, can we just talk about your current strategic point of view on investing? And I'm thinking about allocation of resources across a couple of vectors, global versus local market-focused content, films versus series, and I think Netflix-branded versus licensed. Just if you could tell us sort of from a high level where you stand on how you're splitting your resources there.

偉大的。偉大的。好的。所以我想談談一些與內容相關的關鍵內容。我想我們知道我想要討論的廣為人知的話題。但首先，特德，我們可以談談您目前的投資策略觀點嗎？我正在考慮跨幾個載體的資源分配，全球與本地市場為中心的內容，電影與電視劇，我認為 Netflix 品牌與授權。只要您能從較高的層面告訴我們您在如何分配資源方面的立場即可。

Well, the one -- one of those 3 that cut across all of them is the original branded content versus license, which is producing the kind of programming that is locally relevant and globally important. And I think we've seen shows like Stranger Things right now that plays almost completely globally, performing off the charts in every country in the world. We saw it similarly last quarter with Umbrella Academy, a show that is incredibly a global show. So there's plenty of content that is global and there's a lot of content that's very, very specifically local, and we're balancing constantly between those 2. And every once in a while, you get something out of like La Casa de Papel from Spain that also becomes a global phenomenon that has nothing to do with what we've seen for -- since the beginning of film and television, that almost all content that travels the world is in English from America, and we're seeing those dynamics change pretty rapidly. But at the same time, it's a very large audience and about most of the English-speaking content travels. So we're constantly doing those trade-offs between the 2.

嗯，貫穿所有這些內容的三個因素之一是原創品牌內容與許可，後者正在製作與本地相關且具有全球重要性的節目。我認為我們現在已經看到像《怪奇物語》這樣的節目幾乎完全在全球範圍內播放，在世界每個國家的表現都打破了排行榜。上個季度我們在《傘學院》中也看到了類似的情況，這是一場令人難以置信的全球性演出。因此，有很多內容是全球性的，也有很多內容是非常非常具體的本地內容，我們不斷在這兩者之間進行平衡。每隔一段時間，你就會從西班牙的La Casa de Papel 中得到一些東西這也成為一種全球現象，與我們所看到的無關——自電影和電視出現以來，世界各地傳播的幾乎所有內容都是來自美國的英語，我們看到這些動態正在改變相當快。但同時，它的受眾群體非常大，而且大部分內容都是英語傳播的。因此，我們不斷在兩者之間進行權衡。

The overarching strategy that we're continuing to drive toward is, over 6 years ago, we got into original programming, betting that the license program would be more and more difficult to come by and that maybe the sources of content to license for will be under different levels of strain. That has paid off, we think. We think it's been very important to the business to continue pushing down that road, so the more international, more global, more original film. We also have a large investment coming up in animation that will serve to see some of the fruits from early next year. So we're -- we think we're betting in all the areas of content that our consumers love.

我們繼續推動的整體策略是，六年多前，我們開始涉足原創節目，押注許可計劃將越來越難以獲得，並且可能要許可的內容來源將是在不同的應變水平下。我們認為，這已經得到了回報。我們認為繼續沿著這條路前進對企業來說非常重要，因此電影更國際化、更全球化、更原創。我們還在動畫方面進行了大量投資，這將有助於從明年初看到一些成果。因此，我們認為我們正在押註消費者喜愛的所有內容領域。

And just a follow-up. Film has been something where, clearly, we've seen more volume and more focus, at least on a relative basis. Can you talk about why film is incrementally important for the platform overall relative to the series? And is it fair to say that more effort has gone there? Because it certainly feels like it from our perspective.

只是後續行動。顯然，電影的數量和關注度更高，至少相對而言是如此。您能談談為什麼相對於該系列電影對於整個平台來說越來越重要嗎？可以說我們在這方面付出了更多的努力嗎？因為從我們的角度來看，這確實是這樣的。

I would say more effort than in the past couple of years and I'd say more successful effort in the last -- than in the last couple of years. So that's what I've been most excited about. When you see a film like Murder Mystery hit an audience as large as it has, you'd start thinking we really aren't benchmarking against our ability to license Pay 1 movies. We're benchmarking against the consumer perception of what movie they want to see on a Friday night. So that competition is for very large-scale films, for very intimate indie films and everything in between. And I think the team has done an incredible job this year in punching those films out into the zeitgeist, becoming those real talkable moments like Bird Box, like Murder Mystery. We think in Q4, with Irishman and 6 Underground, that these are the kind of films that people just think about when they want to watch a movie and they're not -- not when they want to watch a pay-TV movie.

我會說比過去幾年付出了更多的努力，我會說過去幾年比過去幾年付出了更多成功的努力。這就是我最興奮的事。當你看到像《謀殺之謎》這樣的電影吸引瞭如此多的觀眾時，你會開始認為我們真的沒有以我們授權 Pay 1 電影的能力為基準。我們正在根據消費者對週五晚上想看什麼電影的看法進行基準測試。因此，競爭的對像是非常大型的電影、非常私密的獨立電影以及介於兩者之間的一切。我認為今年團隊在將這些電影融入時代精神方面做得非常出色，成為像《鳥盒》、《謀殺之謎》那樣真正值得談論的時刻。我們認為，在第四季度，《愛爾蘭人》和《地下六號》是人們在想看電影時才會想到的電影，但當他們想看付費電視電影時卻不會。

Great. So you mentioned this, Ted, and I'm happy to ask you and open it up more broadly, but really a big question about the high-profile content coming off the service over the course of the next year or so. I think the first question is about impact, and you addressed it a bit in the letter, but when -- we have The Office, we have Friends, we have the Disney-branded content in particular coming off the platform. So again, you addressed it a bit. I'd love to hear any expansion on it. One is just how much of the viewing consumption does this make up? Either person-by-person, I think there'd be differences between the amount of viewing and the number of members that are viewing it for one day. There's also a domestic and international dynamic. And then also just the sort of historical precedent. You have had content like Family Guy, X-Files, things like that, that has come off. What -- help us with the precedent to how we should think about this.

偉大的。所以你提到了這一點，特德，我很高興向你詢問並更廣泛地開放它，但這確實是一個關於在未來一年左右的時間內從服務中推出的備受矚目的內容的大問題。我認為第一個問題是關於影響力的，你在信中提到了這一點，但是當我們有《辦公室》、我們有《老友記》、我們特別是從平台上推出迪士尼品牌的內容時。再說一遍，你稍微解決了這個問題。我很想聽聽對此的任何擴展。一是這佔了多少觀看消費？無論是個人還是個人，我認為觀看量和一天觀看的會員數量之間都會存在差異。還有國內和國際動態。然後也是歷史先例。你有像《惡搞之家》、《X檔案》之類的內容，已經成功了。什麼——幫助我們了解我們應該如何思考這個問題的先例。

Since we started streaming 12 years ago, the consistent dynamic is that content comes and goes. The licenses come on, they expire, they get competitive, they go somewhere else, that's been true. This is the kind of second round with the Pay 1 Disney films. Remember back in the day, we used to license them through Starz and had them on Netflix and it was a big swing off, along with films from Sony at the same time.

自從我們 12 年前開始串流媒體以來，始終如一的動態是內容來來去去。許可證發放、到期、變得有競爭力、然後去其他地方，這是事實。這是第二輪與Pay 1迪士尼電影的那種。還記得以前，我們曾經透過 Starz 獲得它們的許可並在 Netflix 上播放，這是一個很大的轉變，同時還有索尼的電影。

So we've seen the entire output from Fox. We've seen the entire Nickelodeon kids output come and go on the site. And we grow through that by, we believe, by making these early investments in original programming and getting our consumer and our members much more attuned to the expectation that we're going to create their next favorite show, not that we're going to be the place where you can get anything every time. And we think there's more value in that proposition than there would be in the kind of low price aggregator.

我們已經看到了 Fox 的全部輸出。我們已經看到尼克兒童頻道的所有內容都在該網站上出現和消失。我們相信，我們的成長是透過對原創節目進行早期投資，讓我們的消費者和會員更加適應我們將製作他們下一個最喜歡的節目的期望，而不是我們將成為一個每次都能得到任何東西的地方。我們認為這個主張比那種低價聚合器更有價值。

Mike, the only thing I might add to that is just, as Ted said, we've been planning for this for a long time, but when you look at our -- we don't have any overconcentration in any single studio or any single show. We talked about it in the letter. Any single show, even the most viewed shows are single-digit -- low single-digit percentages of viewing. And there is going to be -- as content rolls off the service and when and if it rolls off the service, it's going to be over time. If you look out 3, 4, 5 years from now, that second round license content, there's still a very meaningful portion of what's on the service today that will still be on the service 4 or 5 years from today. So we're just going to continue to focus on our strategy of developing more and more original programming. And obviously, as Ted said, if there's a second round license programming that's available, then that's still part of the business.

麥克，我唯一要補充的是，正如特德所說，我們已經為此計劃了很長時間，但是當你看看我們的——我們沒有過度集中在任何一個工作室或任何一個工作室。單秀。我們在信中談到了這一點。任何單一節目，即使是觀看次數最多的節目，其觀看次數也只有個位數——較低的個位數百分比。隨著內容從服務中滾出，以及何時從服務中滾出，這將會隨著時間的推移而發生。如果您在 3、4、5 年後查看第二輪授權內容，您會發現今天的服務中仍然有非常有意義的部分，4 或 5 年後仍然會出現在服務上。因此，我們將繼續專注於開發越來越多原創節目的策略。顯然，正如特德所說，如果有第二輪許可程序可用，那麼這仍然是業務的一部分。

Understood. Before we talked about the allocation of budget there, the international versus domestic dynamic for some of that specific high-profile content that's coming off, is the consumption of it and the availability of it consistent on a global basis? Or is this primarily a domestic phenomenon? How should we think about that?

明白了。在我們討論那裡的預算分配之前，一些即將出現的特定高調內容的國際與國內動態，它的消費和可用性在全球範圍內是否一致？還是這主要是國內現象？我們該如何思考這個問題？

It's primarily domestic now. Like it's -- by way of example, we just recently added Big Bang Theory to a lot of our international territory. We never had it available to our -- in the U.S. So I think it's international -- it's more of a domestic-driven initiative today that -- and success, we believe, it will be an international one, too.

現在主要是國內的。舉例來說，我們最近剛剛將《大爆炸理論》加入了我們的許多國際領域。我們從來沒有在美國獲得過它，所以我認為它是國際性的，今天它更像是一項國內驅動的舉措，我們相信，成功也將是一項國際性的舉措。

Okay. And then, of course, you're spending money on this content. So it's not like it's just leaving -- you have resources being freed up, if you will.

好的。然後，當然，你會在這些內容上花錢。所以這並不是說它只是離開——如果你願意的話，你可以釋放資源。

Absolutely.

絕對地。

When we talk about though the availability of product, if there's one thing to take a sort of iconic piece of content off the shelf and not have to have it recreated, when we think about redeploying that money and expanding your budget even further for originals, are there constraints on whether it be talent, any types of resources available? Or do you think that there's ample opportunity to go out and redeploy that?

當我們談論產品的可用性時，如果有一種方法可以將一種標誌性的內容從貨架上拿下來，而不必重新創建它，那麼當我們考慮重新部署這筆資金並進一步擴大原創內容的預算時，無論是人才、任何類型的可用資源，是否有限制？或者您認為有足夠的機會出去重新部署它嗎？

We definitely think there's ample opportunity, particularly across film and television. Like I said, a couple of years ago, we were not investing in animation at all. And today, we're investing very aggressively. I also think that the emergence of the next global storyteller being from anywhere in the world certainly opens up that opportunity, and we are becoming much more seasoned producers all over the world to do that.

我們絕對認為有充足的機會，尤其是在電影和電視領域。就像我說的，幾年前，我們根本沒有投資動畫。今天，我們的投資非常積極。我還認為，來自世界任何地方的下一個全球故事講述者的出現無疑打開了這個機會，我們正在成為世界各地更加經驗豐富的製作人來做到這一點。

Okay. Great. Now you are investing more on your own capabilities, of course. And Greg, I think that one thing that we don't talk about much is the technology side of the studio and production. Is there an opportunity for Netflix as a technology company in addition to being a media company to take advantage of some opportunities to be a more efficient studio, a better studio in terms of what you're working with Ted on?

好的。偉大的。當然，現在您正在對自己的能力進行更多投資。格雷格，我認為我們不常談論的一件事是工作室和製作的技術方面。Netflix 除了作為媒體公司之外，作為一家科技公司，是否有機會利用一些機會成為一家更有效率的工作室，就您與 Ted 合作的內容而言，是一家更好的工作室？

Yes. So if you think about the number of titles that we are producing and the strength that we have in technology and analytics, we do think that there is an opportunity back to that discussion we just had around making a fixed cost investment, either in terms of efficiency benefits or outcome benefits, just the quality of the dollars that get to the screen that impact the user across the range of titles that we are producing. Now I would say it's early days here. So we're trying out, replacing a bunch of bets and we'll see sort of how those bets play out.

是的。因此，如果你考慮我們正在製作的遊戲數量以及我們在技術和分析方面的實力，我們確實認為有機會回到我們剛剛圍繞固定成本投資進行的討論，無論是在效率效益或結果效益，只是進入螢幕的資金質量，對我們正在製作的各種遊戲的用戶產生影響。現在我想說現在還太早。所以我們正在嘗試，更換一堆賭注，我們會看看這些賭注的效果如何。

But just to give you a sense of -- make it a little bit less abstract and more concrete, when you think about after show or a movie has been made, you make a trailer to promote that. We use this on-service. We use this off-service, right? And typically, the first step in that process is someone goes through and they look at all of the scenes in that show, for example, and they inventory like who are the characters, what's happening there, and that sort of provides us index so that they can actually take that material and then from that, use that index to assemble, in the creative process, what's a compelling trailer. Well, we can increasingly use automation, use the technology investment to basically do that indexing process so that our trailer creators can really focus their time and energy on the creative process, taking the result of that automated process and putting together something which is super compelling, tells a story of what the show is in an authentic way and makes it more attractive to users. That's just one example of the kind of investments that we are making that we think have that kind of returning leverage against scale.

但只是為了讓你有一種感覺——讓它不那麼抽象，更具體，當你想到演出或電影製作完成後，你會製作一個預告片來宣傳它。我們在服務中使用這個。我們使用這個關閉服務，對嗎？通常，該過程的第一步是有人瀏覽並查看該節目中的所有場景，例如，他們清點角色是誰，那裡發生了什麼，這為我們提供了索引，以便他們實際上可以獲取該材料，然後在創作過程中使用該索引來組合出引人注目的預告片。好吧，我們可以越來越多地使用自動化，使用技術投資來基本上完成索引過程，以便我們的預告片創作者可以真正將時間和精力集中在創意過程上，獲取自動化過程的結果並將超級引人注目的東西組合在一起，以真實的方式講述節目的故事，使其對用戶更具吸引力。這只是我們正在進行的投資的一個例子，我們認為這些投資具有針對規模的回報槓桿。

And I would just add that being an efficient producer is a very good thing to do obviously, but being an efficient distributor and being an efficient marketer is P&L-changing. So that is a way to think about. We're working in all 3 of those things at the same time.

我想補充一點，成為一名高效的生產商顯然是一件非常好的事情，但成為一名高效的分銷商和高效的營銷人員會改變損益。所以這是一種思考方式。我們同時致力於所有這三件事。

Great. I want to move a little bit to the reporting and the granular reporting of data that you referenced on the last call. One of the places we're seeing it more clearly is in the U.K. with the top 10 list. So my 2 questions are, number one, can you share any results from that U.K. top 10 list, number one? And number two, what can we, as consumers or members, expect going forward? And then I have one follow-up with respect to what it means for the talent, of course.

偉大的。我想稍微談談您在上次通話中引用的報告和數據的詳細報告。我們可以更清楚地看到這一點的地方之一是英國，其排名前十。所以我的兩個問題是，第一，你能分享英國前 10 名名單中的任何結果嗎？第二，身為消費者或會員，我們可以期待什麼？當然，我還有一個關於這對人才意味著什麼的後續行動。

Well, the one thing we are -- we said this in the last call as well that we think we are being much more transparent with the creators and increasingly with the public in terms of what's being viewed on Netflix, mostly because I think people use a lot of different inputs to figure out what they want to see, and popularity is definitely one of them. And we're trying to figure out how to balance off popularity against all the other personalization tools to get people that opportunity that if they want to see what everyone else is watching in their country, in their city, in their town, that we can present that to them in a way that helps them make better choices. But in general, I think we're still testing the best application of that and it's still very much in active testing mode.

嗯，我們的一件事是——我們在上次電話會議中也說過，我們認為我們對創作者更加透明，並且在Netflix 上觀看的內容方面，我們對公眾的透明度也越來越高，主要是因為我認為人們使用有很多不同的輸入來確定他們想看什麼，而受歡迎度絕對是其中之一。我們正在努力找出如何在流行度與所有其他個人化工具之間取得平衡，以便讓人們有機會，如果他們想看到其他人在他們的國家、他們的城市、他們的城鎮正在觀看的內容，我們可以以幫助他們做出更好選擇的方式向他們展示這一點。但總的來說，我認為我們仍在測試其最佳應用程序，並且仍然處於主動測試模式。

Yes. I'd just want to comment. I think we feel like there's a great way to actually enable that personalization, but enable popularity signaling for the users that want it. It's just basically looking at the folks that use that popularity as a factor in the decision-making they take about what to watch next and making sure that those popularity signals are available and very present for those users. And for users who don't seem to want that, then we can sort of make those less present.

是的。我只是想發表評論。我認為我們覺得有一個很好的方法可以真正實現這種個人化，但可以為需要它的用戶提供流行訊號。它基本上只是專注於那些將受歡迎程度作為他們下一步觀看內容決策的一個因素，並確保這些受歡迎程度訊號對於這些用戶來說是可用的並且非常存在。對於那些似乎不想要這樣的用戶，我們可以減少這些內容的出現。

Yes. And there -- as an example of a very granular piece of data that we shared recently was in the first 4 days of Stranger Things 3, more than 18 million people watched the entire season. And why share that number? Because the very next follow-on to that was, wow, I'm one of those 18 million. I want to tell my friends about it. Or oh my God, I want to be one of those 18 million. Or are you one of those 18 million? So it creates a lot of excitement in the fan base when you can give them some data to chew on.

是的。作為我們最近分享的一個非常精細的數據的例子，在《怪奇物語 3》的前 4 天裡，超過 1800 萬人觀看了整個賽季。為什麼要分享這個數字？因為緊接而來的是，哇，我是那 1800 萬人中的一員。我想告訴我的朋友這件事。或者天哪，我想成為那 1800 萬人中的一員。還是你是這1800萬中的一員嗎？因此，當你可以給粉絲一些數據供他們思考時，這會在粉絲群中引起很大的興奮。

So from a public perspective or from a member perspective, should we expect more consistency in that type of data? Or is it going to be a one-off on selected items that you feel are valuable?

那麼，從公眾的角度或從會員的角度來看，我們是否應該預期此類數據具有更高的一致性？或者，這將是您認為有價值的精選商品的一次性選擇？

Yes. I think we'll be increasingly transparent with producers and then, over time, more and more. I feel like that it's important for us to help condition the market to understand what the viewing data is so it's not being compared apples-to-oranges against things that are not similar. And right now, if we start publishing tomorrow, we'd be the only streaming service doing it.

是的。我認為我們對製作人的透明度會越來越高，然後隨著時間的推移，會越來越透明。我覺得對我們來說，幫助調節市場以了解觀看數據是什麼很重要，這樣就不會將其與不相似的事物進行同類比較。現在，如果我們明天開始發布，我們將是唯一這樣做的串流媒體服務。

Right. Right. So the value of this data to your content partners, content creators, as you create more of these large-budget films, you have actors or other talent that historically perhaps were compensated on box office performance. How are you approaching that when you want to make these big-budget films and you want to incentivize talent? And maybe the flip side to that is perhaps you have a little protection if a film doesn't do as well in the traditional model, is there a way that this data starts giving you both the incentive and the protection?

正確的。正確的。因此，這些數據對於您的內容合作夥伴、內容創作者來說具有價值，當您製作更多此類大預算電影時，您擁有的演員或其他人才在歷史上可能會透過票房表現獲得補償。當你想要製作這些大預算電影並且想要激勵人才時，你會如何處理這個問題？也許另一方面是，如果一部電影在傳統模式下表現不佳，你可能會得到一點保護，有沒有辦法讓這些數據開始為你提供激勵和保護？

Yes. I think -- and what we're trying to do is it's a very new model, particularly for box office-friendly talent who want to make their next big film in Netflix. So we have to figure out a model that, in success, how would they be compensated? The fact that it's guaranteed, there's some discount applied for that. And the fact that it's paid out over a quicker period, there will be discounts applied for that. But ultimately, we want the economics to be pretty neutral or at least are similar to what they would be if they had a big hit film in the theaters. And that's what we negotiate film-by-film, talent with -- actor-by-actor.

是的。我認為 - 我們正在嘗試做的是這是一種非常新的模式，特別是對於那些想要在 Netflix 製作下一部大片的票房友好的人才來說。所以我們必須找出一個模型，如果成功的話，他們將如何得到補償？事實上，它是有保證的，因此有一些折扣。事實上，它是在更快的時間內支付的，因此會有折扣。但最終，我們希望經濟狀況相當中性，或至少與戲院上映一部大熱電影的情況相似。這就是我們逐部電影、逐個演員協商人才的方式。

Great. I'll open this up to anyone, Reed perhaps. Looking at the product placement or rather product partnerships for Stranger Things, certainly very high profile, a lot of buzz, very broad. In the letter, you referenced it as being more about building the product itself versus monetizing. Does it become a monetizeable part of the business at some point? Or put differently, expand a bit on the benefit of doing that and how that might be broadened to other properties.

偉大的。我會把這個告訴任何人，也許是里德。看看《怪奇物語》的置入性廣告，或者說產品合作夥伴關係，確實非常引人注目，引起了很多關注，而且範圍非常廣泛。在信中，您提到它更多是關於建立產品本身而不是貨幣化。它會在某個時候成為業務的可貨幣化部分嗎？或者換句話說，稍微擴展一下這樣做的好處以及如何將其擴展到其他屬性。

Well, we're monetizing it today in more membership growth. The focus is get more people excited about Stranger Things so that they join Netflix. They tell their friends about it. So this year, we'll add about $5 billion of incremental subscription revenue, which is almost all of gross margin, and that's faster than any entertainment company has grown in the history of the world. So what we want to do is keep that engine going, keep that subscriber engine going and not get distracted with alternative revenue sources which just don't add up when you're growing $5 billion a year. So the core focus is create all these merchandising opportunities, tie-ins, touch points so that you feel the Stranger Things energy so that more people join. So together, as we do monetize all that, it's just we're monetizing it through our giant engine rather than through little sidecar vehicles.

好吧，我們今天正在透過更多的會員成長來將其貨幣化。重點是讓更多人對《怪奇物語》感到興奮，從而加入 Netflix。他們告訴他們的朋友這件事。因此，今年，我們將增加約 50 億美元的增量訂閱收入，這幾乎是毛利率的全部，這比世界歷史上任何娛樂公司的成長速度都快。因此，我們想要做的是保持這個引擎的運轉，保持訂閱者引擎的運轉，而不是因為其他收入來源而分心，而當你每年增長 50 億美元時，這些收入來源就不會增加。因此，核心重點是創造所有這些推銷機會、搭配、接觸點，讓你感受到《怪奇物語》的能量，讓更多人加入。因此，當我們確實將所有這些貨幣化時，我們只是透過我們的巨型引擎而不是透過小型邊車來貨幣化。

Mike, I think we have time for...

麥克，我想我們有時間...

You should think about -- particularly in the case of Stranger Things 3, you should think about all those product partnerships as a character in the film -- in the show. Remember, the show is set in 1985 and it's set in the heart of -- when the big summer blockbuster movies were jammed with product placement, and there was really a creative choice when they talked about pitching that season out more than -- almost 2 years ago.

你應該考慮——特別是在《怪奇物語 3》的情況下，你應該把所有這些產品合作夥伴作為電影中的角色——在節目中考慮。請記住，這部劇以1985 年為背景，它的背景是——當時暑期大片都充斥著植入式廣告，當他們談到將這一季推出超過——幾乎2 時，這確實是一個創造性的選擇。幾年前。

Mike, we have time for one last question, please.

麥克，我們有時間回答最後一個問題。

Okay. Great. Usually, we like to do a big picture, but this is one very specific financial question that we get a lot, and it's really about the margin potential of the business over time. I think it ties together a lot of these different things that we just talked about. But Spencer, we've had the chance to hear your opinion a bit. I'd love to hear you expand on it. Because Netflix is a single revenue stream product, you are very clear in the letter that advertising is not part of your future despite what we read in the press. Can Netflix ever achieve the type of margins that we've seen historically out of cable networks, be it an HBO, which is a unique single revenue model whether -- or another network that was a dual revenue stream? Or are we inherently going to be sub-historical average margins for Netflix on a global basis?

好的。偉大的。通常，我們喜歡縱觀全局，但這是一個我們經常遇到的非常具體的財務問題，而且它實際上與企業隨著時間的推移的利潤潛力有關。我認為它將我們剛才談到的許多不同的事情聯繫在一起。但是史賓塞，我們有機會聽聽你的意見。我很想聽聽你對此進行擴展。由於 Netflix 是單一收入來源產品，因此您在信中非常明確地表示，無論我們在媒體上讀到了什麼，廣告都不是您未來的一部分。Netflix 能否實現我們歷史上在有線電視網絡中看到的那種利潤率，無論是 HBO（這是一種獨特的單一收入模式）還是另一個具有雙重收入來源的網絡？或者，Netflix 的全球利潤率本質上會低於歷史平均值嗎？

I mean, you take it or you, Reed? I can take it.

我的意思是，你接受還是你接受，里德？我可以接受。

You got to do it.

你必須這麼做。

Okay. Well, look, yes, I think, yes, we've demonstrated over the last few years that we're focused on building a very healthy long-term business model and growing those margins roughly 300 basis points for the last few years to a target of 13% this year. When we go for -- when I look forward in terms of the margin potential and scale the business, first, Reed talked about it a bit earlier, our aspiration for a business that's already at 150 million paying members is to be a multiple of our current size. So that is a network with a relative scale for a premium entertainment network that really hasn't been seen before for those comparables that you mentioned in terms of those historical margins, so that works in our favor.

好的。嗯，看，是的，我想，是的，過去幾年我們已經證明，我們專注於建立一個非常健康的長期商業模式，並將過去幾年的利潤率提高了大約 300 個基點，達到今年的目標是13%。當我們追求——當我展望利潤潛力和擴大業務規模時，首先，里德早些時候談到過，我們對已經擁有 1.5 億付費會員的業務的渴望是成為我們的數倍。目前的規模。因此，這是一個具有相對規模的優質娛樂網絡，對於您在歷史利潤方面提到的那些可比較的網絡來說，以前確實沒有見過，所以這對我們有利。

And we also think about the revenue per any individual subscriber, and whether that's advantaged with a dual revenue stream or a single revenue stream. And our calculus now for building a global network is that we're best served to focus on that single revenue stream, winning those moments of truth with a great member experience and then continuing to price occasionally against that to create value proposition where we start with great content, create experience and then offer it at a reasonable price. We think we can do that in a way that obviously continues to scale margins in a very healthy way.

我們也會考慮每位訂閱者的收入，以及雙重收入流或單一收入流是否有優勢。我們現在建立全球網路的運算是，我們最好專注於單一收入來源，透過出色的會員體驗贏得關鍵時刻，然後繼續偶爾進行定價，以創造我們從一開始的價值主張優質的內容，創造體驗，然後以合理的價格提供。我們認為我們可以透過一種明顯地繼續以非常健康的方式擴大利潤的方式來做到這一點。

We're not going to provide specific guidance. But when you look at those comparables, there are some things that work in our favor and some things that don't. So scale is in our favor. We think the subscription model is a terrific model for us. So certainly, we believe that there's going to be more margin accretion over time. And again, I'm going to kind of leave it at that, but you can assume that we have a long way to go.

我們不會提供具體指導。但當你審視這些可比性時，你會發現有些事情對我們有利，有些則不然。因此規模對我們有利。我們認為訂閱模式對我們來說是一個很棒的模式。當然，我們相信隨著時間的推移，利潤率將會增加。再說一次，我打算就此擱置，但你可以假設我們還有很長的路要走。

And Mike, well, you don't want to end on something that dry, I could say 2 things really quickly. One would be that -- to congratulate HBO on an incredible record-breaking year at the -- for Emmy nominations. They are -- continue to be the gold standard that we chase, and we're really thrilled for them.

麥克，好吧，你不想以如此枯燥的事情結束，我可以很快地說兩件事。其中之一是——祝賀 HBO 在艾美獎提名上打破了令人難以置信的紀錄。它們仍然是我們追求的黃金標準，我們真的為它們感到興奮。

And also to the end of this month, in July 26, we're going to wrap up our seventh season, our seventh and final season of Orange is the New Black. And I wanted to thank Jenji Kohan for her incredible vision that helped really drive this whole idea of Internet television to new heights. And the show wraps up in a really incredible and emotional high and we hope the fans love it.

而且到本月底，也就是 7 月 26 日，我們將結束第七季，《女子監獄》的第七季也是最後一季。我要感謝 Jenji Kohan 令人難以置信的遠見，她的遠見真正幫助將網路電視的整個理念推向了新的高度。這部劇以令人難以置信的情感高潮結束，我們希望粉絲們喜歡它。

Awesome. Great. Thank you for livening that up, Ted.

驚人的。偉大的。謝謝你讓這一切變得生動起來，特德。

Thank you, Mike.

謝謝你，麥克。

Thanks.

謝謝。