Netflix Inc (NFLX) 2019 Q4 法說會逐字稿

Good afternoon, and welcome to Netflix Q4 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，歡迎收看Netflix 2019年第四季財報訪談。我是 Spencer Wang，投資人關係與企業發展副總裁。今天與我一同出席的有：執行長里德·哈斯廷斯；首席財務官斯賓塞·諾伊曼；首席內容官泰德·薩蘭多斯；以及首席產品官格雷格·彼得斯。本季我們的訪談嘉賓是來自古根漢美術館的麥克莫里斯。

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

再次提醒，我們將發表一些前瞻性聲明，實際結果可能會有所不同。那麼，現在讓我把時間交給麥克，讓他提出第一個問題。

Great. Thank you, Spencer, and good afternoon. Before we dive into some of the details that you provided in this quarter's letter, I'd love to have Reed provide some strategic thoughts as we head into the new year, the new decade. Perhaps we can start with just what were the most important strategic accomplishments in your mind of 2019? And as you look forward, what do you hope to accomplish this year?

偉大的。謝謝你，史賓塞，下午好。在我們深入探討您在本季度信函中提供的一些細節之前，我想請里德先生就我們即將邁入的新年、新十年提出一些戰略性的想法。或許我們可以先問問您認為2019年最重要的策略成就是什麼？展望未來，你希望今年能有哪些成就？

We've had the same strategy basically for 20 years, which is please our members and they help us grow, and we've done that in a variety of ways. Of course, initially just with DVD by mail, then the combination. And if you look at what we've done in expanding film and making that a really strong aspect of Netflix, we've had a lot of continuous progress. But it's the same strategy we've always done, how do we learn how to please our members, whether that's on the product side, marketing side or content side. In the next decade, we anticipate the same, how do we use the great resources that we have to do even better.

20年來，我們的策略基本上相同，那就是取悅我們的會員，他們幫助我們發展壯大，我們透過各種方式實現了這一點。當然，最初只是透過郵寄方式提供 DVD，後來才發展成兩者結合。如果你看看我們在拓展電影業務、使其成為 Netflix 的一個強大方面所做的工作，你會發現我們取得了持續的進步。但這和我們一直以來的策略一樣，那就是如何才能讓我們的會員滿意，無論是在產品方面、行銷方面或內容方面。未來十年，我們預期情況依然如此，我們將如何利用我們所擁有的豐富資源做得更好？

Now let's talk a little bit about some of the key specifics from the letter today. The first, of course, is the guidance on your member growth for the coming quarter. We had a very strong fourth quarter compared to your guide. The first quarter is lighter than it was in the prior year. You talk about some of the potential for timing between the first and second quarter. I think the key question on investors' minds is how to think about the full year. 2019 looked very similar to 2018 with the strong fourth quarter. How should we think about the coming year in that regard?

現在讓我們來談談今天這封信中的一些關鍵細節。首先，當然是關於您下一季會員成長的指導意見。與你們的指導方針相比，我們第四季度的業績非常強勁。第一季比上年同期減少。您談到了第一季和第二季之間一些潛在的時間安排。我認為投資人最關心的問題是如何看待全年的市場趨勢。2019 年與 2018 年非常相似，第四季表現強勁。我們該如何看待即將到來的一年呢？

Want me to take this one?

要我來接這個嗎？

Sure.

當然。

I'll take this one, Mike. So first, I should say, Mike, our opportunity, we view our opportunity -- our long-term opportunity as big and unchanged. So we should be clear about that. We're not providing full year guidance, but when you think about Q1, again, it's comping off of the all-time biggest quarter we've ever had in Q1 of last year. We guided to 7 million paid net adds in 2020. So when you look at that Q1 2020 number of 7 million, that's still a big growth. That's -- we've only had 4 quarters in our history where we've grown more than 7 million in paid net adds. And the number specifically, it reflects, first, there is primarily a U.S. story there, in that we have seen, and we talked about in the letter, some elevated churn in the U.S. from a combination of pricing and competition. We've kind of rolled that through into Q1, including a full quarter of competition in Q1 versus a partial quarter in Q4.

我來做這個，麥克。首先，我要說的是，麥克，我們認為我們的機會——我們的長期機會——是巨大且不變的。所以這一點我們應該要明確。我們不提供全年業績指引，但考慮到第一季的情況，這是基於去年第一季我們有史以來業績最好的一個季度。我們預計 2020 年付費淨新增用戶將達到 700 萬人。所以，當你看到 2020 年第一季 700 萬這個數字時，這仍然是一個巨大的成長。也就是說，在我們公司的歷史上，只有 4 個季度的付費用戶淨增量超過 700 萬。具體來說，這個數字首先反映出，這主要反映了美國的情況，因為我們已經看到，而且我們在信中也談到了，由於價格和競爭的綜合作用，美國的客戶流失率有所上升。我們已經把這些措施延續到了第一季度，包括第一季完整的季度比賽，而第四季只進行了部分季度的比賽。

We also anticipate that competition rolling out globally throughout the year. So we're trying to be prudent of thinking about that impact throughout the business. And then what we talked about as well is when we think about the seasonality, the arc between Q1 and Q2, the first half of the year, we think it's likely to be more balanced because of the timing of the price changes we took that rolled through Q2 of 2019. So we think that our seasonality is going to look more like 2018 than 2019 when you think about the first half of the year.

我們也預計這項賽事將在今年全年陸續在全球展開。因此，我們努力謹慎地考慮這種影響對整個業務的影響。然後我們也討論了，當我們考慮季節性因素，也就是第一季和第二季之間的波動，也就是上半年，我們認為由於我們在 2019 年第二季採取的價格調整措施的時機，市場可能會更加平衡。所以我們認為，就今年上半年而言，我們的季節性特徵會更像 2018 年而不是 2019 年。

Okay. And when we talk about competition, you've mentioned churn a couple of times with respect to the potential impact. Can you talk about competition on both gross adds and engagement as well? Especially in engagement, I know it's early, but clearly, the Disney+ product has a very heavy kids and family focus to it. Have you seen any specific engagement change on your content in that genre?

好的。當我們談到競爭時，您曾多次提到客戶流失及其潛在影響。您能否談談總廣告量和用戶互動量的競爭情況？尤其是在用戶參與度方面，我知道現在還為時過早，但很明顯，Disney+ 產品非常注重兒童和家庭用戶。你發現該類型內容的互動量有任何具體變化嗎？

Sure. Well, I'll chip in. Others can -- we actually alluded to this in the letter, Mike. The great thing is, first off, we're growing in Q4, including in the U.S., even with some of this noise from competitive launches. And ultimately, what drives our business is increasing member satisfaction and viewing. And what you also see in the U.S., what we saw across the board is that our viewing, our per membership viewing grew, not just globally, but in the U.S. through Q4 and continues. So that bodes well for our long-term opportunity as long as we keep getting better.

當然。好吧，我也出一份力。其他人也可以──我們其實在信中也提到過這一點，麥克。最棒的是，首先，我們在第四季度實現了成長，包括在美國，即使受到競爭對手產品發布帶來的一些幹擾。歸根結底，推動我們業務發展的動力是提高會員滿意度和觀看量。而且在美國，我們也看到，總體而言，我們的觀看量，我們的每位會員觀看量，不僅在全球範圍內，而且在美國，在第四季度都實現了增長，並且這種增長仍在繼續。只要我們不斷進步，這對我們的長期發展機會來說就是個好兆頭。

And Mike, think of it that Disney product, Disney+ has a lot of great catalog product and one big new show, Mandalorian, and it primarily is going to take away from linear TV and takes away a little bit from us. But again, most of the growth in the future is coming out of linear TV.

麥克，想想迪士尼的產品 Disney+ 有很多很棒的節目庫，還有一部很棒的新劇《曼達洛人》，它主要會搶走傳統電視的市場份額，也會搶走我們的一些份額。但再次強調，未來大部分成長仍將來自線性電視。

It draws down by a variety of people because they were so broadly distributed prior to the launch.

由於在發布前分佈範圍很廣，因此吸引了各種各樣的人。

Okay. And I guess the last thing on this particular topic is the behavior outside the U.S. as compared to the inside. Clearly, within the U.S., a more mature market, and that's where the products were primarily focused in the fourth quarter, their launches. We do have some more expanded international rollout, particularly Disney talked about or announced a broader European rollout at the end of the first quarter. Any thoughts specific to that? Is that factored in? Is it one of many things? What's your thought there?

好的。最後，我想談談這個話題，那就是美國境外的行為與美國境內的行為有何不同。顯然，在美國這個較成熟的市場，這些產品在第四季主要集中於此進行推廣。我們確實有一些更廣泛的國際推廣計劃，特別是迪士尼在第一季末談到或宣布了更廣泛的歐洲推廣計劃。對此有什麼具體想法嗎？這一點是否已考慮在內？這是眾多事情之一嗎？你對此有何看法？

It's one of many. I mean Disney is going to be a global service quite quickly. And there are many other global services. Remember that we compete a lot for time with YouTube, and it's not dollars because that's ad supported. But we compete very broadly for viewing. And as Spence mentioned, our viewing on a per-member basis is up. And that's because our content is getting better, our service is getting better, and that's all coming out of linear TV.

這是眾多例子之一。我的意思是，迪士尼很快就會成為一家全球性服務公司。此外，還有許多其他全球服務。請記住，我們與 YouTube 爭奪的是用戶的時間，而不是金錢，因為 YouTube 的收入是靠廣告支持的。但我們在收視率方面競爭非常廣泛。正如斯賓塞所提到的，我們每位會員的觀看量都有所增加。這是因為我們的內容越來越好，我們的服務越來越好，而這一切都源自於線性電視。

And I would say that their brands are definitely global brands, but they are no -- with the exception of China, they're not more popular than they are in the U.S. anywhere else in the world.

我認為他們的品牌絕對是全球品牌，但除了中國以外，它們在世界其他任何地方的受歡迎程度並不比在美國更高。

Okay. And so Greg, a question on pricing. Greg, when we spoke last quarter, you felt that these competitive launches would not have an impact on your pricing. So I guess the first question is now that you have this quarter under your belt, any update on that point in particular?

好的。那麼，格雷格，關於定價的問題。格雷格，我們上個季度談話時，你認為這些競爭對手的產品發布不會對你的定價產生影響。那麼我想問的第一個問題是，既然這個季度已經過去了，關於這一點有什麼新的進展嗎？

Yes. I think it's useful to start with just noticing that our revenue in the United States is up 23% year-over-year in Q4. So we're still seeing pretty significant growth there. And we're not seeing anything that fundamentally contradicts our core model or suggests that it's changed in a material way. That model is, if we do a good job of judiciously investing the money that our members give us every month in great stories and better product experiences, creating more value for them, then we occasionally earn the ability to come back to them and ask them for a little bit more money to keep that virtuous cycle of improvements going. And everything we're seeing continues to support that core model is intact. So that's our job.

是的。我認為首先值得注意的是，我們在美國的營收在第四季度同比增長了 23%。所以我們仍然看到這方面有相當大的成長。我們沒有看到任何從根本上與我們的核心模型相矛盾或表明其發生了實質改變的情況。這種模式是，如果我們能明智地將會員每月支付的資金投入到精彩的故事和更好的產品體驗中，為他們創造更多價值，那麼我們偶爾就能贏得機會，向他們索要更多資金，以維持這種良性循環的改進。我們所看到的一切都繼續支持這個核心模式的完整性。這就是我們的工作。

Okay. Great. And to go down that path a little bit further. Historically, you have done some sizable price increases, at least on a percentage basis, on a somewhat spread out time frame. How do you think about possibly doing perhaps a single annual price increase in a more mature market at a more modest rate? I hate to say this, but maybe somewhat more similar to what people have experienced with their cable bill or something to that effect.

好的。偉大的。並沿著這條路再往前走一點。從歷史數據來看，你們曾多次大幅提價，至少從百分比來看是這樣，而且這些提價是在一段相對分散的時間範圍內進行的。您認為在較成熟的市場中，以較為溫和的幅度進行年度價格上漲是否可行？我不想這麼說，但這或許有點像人們收到有線電視帳單時遇到的情況，或類似的事情。

We don't have a fixed model that we're coming in and saying, this is the right approach. So I think our job is to actually listen to our members, give -- the signals that they're giving us in terms of the engagement, that we're seeing that engagement growth that you heard we're going after. And we'll really use that as a mechanism to guide us towards when have we earned that opportunity to come back and ask for more. So we're not really coming in with just a fixed model that we're going to shift to or anything like that.

我們沒有固定的模式，不會貿然提出「這就是正確的方法」。所以我認為我們的工作是認真傾聽會員的意見，回應他們就參與度發出的信號，我們看到了你們所說的我們正在追求的參與度增長。我們將真正利用這一點作為指導機制，來幫助我們判斷何時才能贏得再次爭取更多機會的權利。所以，我們並不是想要引入一個固定的模式，然後把它轉移到其他模式。

And if we're putting hits on the Board and we can see that in the terms of watching and engagement and subscriber growth and growth in the zeitgeist around our projects, then the more you could do that, the more frequently you can go back. So we have to -- we have -- we're in this great model where we have to prove ourselves to our members literally every month. So it's a really -- it does hold us to a very high bar and keeps us coming back and doing more and topping ourselves if we need to.

如果我們把熱門內容放到排行榜上，並且能夠看到這些內容在觀看量、參與度、訂閱用戶增長以及我們項目所引發的時代精神增長方面取得成效，那麼你越能做到這一點，你就可以越頻繁地回顧這些內容。所以我們必須——我們必須——我們身處在這樣一個偉大的模式中，我們必須每個月都向我們的會員證明自己。所以它確實——它對我們提出了很高的要求，促使我們不斷回來做得更好，並在必要時超越自己。

One last question on this is around premium plan subscribers versus your standard plan subscribers, which largest -- you've mentioned in the past, clearly, the largest group. What has been the trend with respect to your subscribers moving to the premium plan? And is there a way to further incentivize them to almost have a self-opted price increase, but also clearly getting an improved product as well?

最後一個問題是關於高級計劃用戶和標準計劃用戶，哪個用戶群最大——您之前已經提到過，顯然是最大的群體。貴公司用戶升級到高級套餐的趨勢如何？有沒有辦法進一步激勵他們幾乎是自願地提高價格，同時又能明顯地獲得改進的產品？

I think we're, again, constantly evaluating the right balance of what features, what prices at those various different tiers. But we haven't seen a significant shift in that, and we see a healthy take rate across all of our plan options, which is a really good sign, I think, that we're providing a range of options at a range of price points that allow consumers in the markets that we serve to sort of select into the right model. Again, we want to be innovative about that, and we'll look for ways to create more value across all of our tiers. But right now, that blend is pretty healthy, we think.

我認為我們一直在不斷評估不同層級的功能和價格之間的適當平衡。但我們並沒有看到這種情況發生重大變化，而且我們看到所有套餐選項的接受率都很健康，我認為這是一個非常好的跡象，表明我們提供了一系列不同價位的選擇，使我們服務的市場中的消費者能夠選擇合適的模式。我們希望在這方面有所創新，我們將尋找方法，在所有層級創造更多價值。但我們認為，目前這種混合比例相當健康。

And Mike, I would just add that in terms of plan mix, you have, over the years, seen a slight migration towards the higher price point plan. That is something that we have seen, but it's quite gradual. So there's no sort of big jump in any sort of given quarter, but quite a gradual increase in that, which I think maps to the growth in smart TVs and high-definition TVs.

麥克，我還要補充一點，就套餐組合而言，這些年來，我們已經看到用戶逐漸向價格更高的套餐靠攏。我們已經觀察到這種情況，但這是一個相當漸進的過程。因此，在任何特定季度都沒有大幅成長，而是呈現相當漸進的成長，我認為這與智慧電視和高清電視的成長相對應。

Okay. I'd like to switch to a few questions on content and content strategy. So Ted, the ramp in feature film product, in particular, both development, release, big step forward for you in 2019. As you look into 2020, what are you most excited about either from a content perspective or an overall thematic perspective? There's a healthy amount of information on some key titles in the letter but would appreciate you highlighting the things that are most important to you.

好的。我想轉而問幾個關於內容和內容策略的問題。所以泰德，在長片產品方面，特別是開發、發行方面，2019 年對你來說都是一個巨大的進步。展望 2020 年，從內容角度或整體主題角度來看，您最期待的是什麼？信中包含了一些關鍵標題的大量信息，但希望您能專注於突出對您而言最重要的內容。

Well, looking forward to next year, we get the opportunity to do some things that we know have worked and come back with some sequels. In our super popular YA genres, we've got these rom-coms, To All the Boys I've Loved Before and Kissing Booth, coming back with sequels in Q1 and Q2. We have big, big-ticket action films with Mark Wahlberg and Charlize Theron and Chris Hemsworth, more like the things you've seen coming -- in Q4 and trying to program our movies like we do our series, for every taste, every mood, every region of the world. So it's not trying to make one-size-fits-all programming, that's why we have so much of it. We just wanted -- we all -- we're going to hold it all to a very high entertainment bar. So you're going to see us working across all genres, like we did in Q4, and still continuing to kind of press up the production quality and the production investment in these films.

展望明年，我們有機會做一些我們知道行之有效的事情，並推出一些續集。在我們非常受歡迎的青少年主題電影中，浪漫喜劇《致所有我曾經愛過的男孩》和《親吻亭》將分別在第一季和第二季推出續集。我們有馬克華柏格、莎莉賽隆和克里斯漢斯沃主演的大製作動作片，更像是你們之前看到的那種——在第四季上映，我們努力像安排劇集一樣安排電影的檔期，以滿足各種口味、各種心情、世界各地觀眾的需求。所以它並不試圖開發一刀切的程式方法，這就是為什麼我們有這麼多程式設計方法的原因。我們只是想──我們所有人──我們要把一切都設定為非常高的娛樂標準。所以你會看到我們像第四季度一樣，涉足所有類型，並繼續提高這些電影的製作品質和製作投入。

And those are all coming out in Q1 and Q2 of this year and some in Q3, Q4. So we just got a tremendous slate this year.

這些產品都將在今年第一季和第二季上市，部分產品將在第三季和第四季上市。所以我們今年拿到了一份非常棒的參賽名單。

Yes. And I think the one thing we have put out in the letter, it's exciting that we end up with being the most nominated studio at the Oscars this year with our films, but the most exciting thing is those films are all incredibly popular with our members as well.

是的。我認為我們在信中表達的一點是，我們最終成為今年奧斯卡提名最多的電影公司，這固然令人興奮，但最令人興奮的是，這些電影也都深受我們會員的喜愛。

So that leads into another question, which is as you have sort of shifted and increased this focus on film, Ted, in particular, you've highlighted a couple of reasons for that and benefits of members. Those have included some comparison with respect to the value proposition, right? You can compare it to a film?

這就引出了另一個問題，那就是，隨著您將重點轉移到電影上，特別是泰德，您強調了這樣做的幾個原因以及會員的好處。其中應該包含一些關於價值主張的比較，對吧？你可以把它比喻成一部電影嗎？

Yes, you know what a movie ticket costs, so sure.

是的，你知道電影票多少錢，所以當然可以。

Exactly. I think we've also talked about the ability for film content to travel, there's sort of a -- perhaps a broader global base of interest. Anything else that you would highlight or remind us of for why this shift in investment -- or maybe not shift, but expansion is important? And also now we have another year under our belt with a pretty robust slate, so have things been progressing as you would have expected given those objectives?

確切地。我認為我們也討論過電影內容傳播的能力，它可能擁有更廣泛的全球受眾群體。您還有什麼要強調或提醒我們，為什麼這種投資轉變（或許不是轉變，而是擴張）很重要嗎？現在我們又走過了一年，並且制定了相當完善的計劃，那麼鑑於這些目標，事情的進展是否如您所預期的那樣呢？

Yes. I'd say, look, when I look back at Q4, I look back and say I'm glad we decided to do this about 1.5 years ago because that's about the time it takes to secure the deals and obviously do the production and get through post and get everything delivered at the level of quality that we are able to. And so now we have all of that kind of ramp-up behind us, and we'll have a steady flow of projects like you've seen in Q4.

是的。我想說，回顧第四季度，我很高興我們大約在一年半前決定做這件事，因為那大約是達成交易、完成製作、後期製作並以我們能夠達到的質量水平交付所有內容所需的時間。現在我們已經完成了所有這些啟動階段，我們將像你們在第四季度看到的那樣，有源源不斷的專案。

Similarly, with feature animation, when I see where we're at today with access to programming and all those other issues, we've been ramping up our feature animation for almost 3 years and really hit the ground with our first project, with Klaus in Q4. That was a complete audience pleaser and an Oscar nominee for Best Animated Feature. And that will keep a steady drumbeat going there as well. In Q2, we have an animated feature called The Willoughbys, and in Q4, we have Over the Moon, which is a -- from Glen Keane, who did Little Mermaid and Beauty and the Beast. So these are big theatrical-scale animated features and big-scale feature films that would be competitive with anything you'd see in the box office. And I think people really do value them. And to your point, they do travel much more predictably than TV series do.

同樣，就動畫長片而言，當我看到我們目前在編程資源和其他方面所處的位置時，我們已經推進動畫長片製作近 3 年了，並在第四季度憑藉第一個項目《克勞斯》真正取得了突破。這部電影深受觀眾喜愛，並獲得了奧斯卡最佳動畫長片提名。這樣也能讓那裡的鼓點持續穩定地響起。第二季度，我們將推出動畫電影《威洛比一家》；第四季度，我們將推出《飛奔去月球》，該片由格倫·基恩執導，他曾執導過《小美人魚》和《美女與野獸》。所以這些都是大型院線動畫電影和大型長片，足以與你在票房上看到的任何電影相提並論。而且我認為人們確實很重視它們。你說得對，它們的旅行確實比電視劇的旅行更有規律可預測。

One of the things you just mentioned and clearly has been very widely reported and seen is the critical acclaim that you've achieved and you've had growth in Golden Globes, now at this point, Oscar nominations. My question is around the business benefit of that and the cost of achieving it as well. Maybe it's a somewhat open-ended question, but how much is it costing you at this point to have those films in a place that they can be considered for that? And what does the time frame for the benefit that the business look like for that?

你剛才提到的其中一件事，顯然也得到了廣泛的報道和認可，那就是你獲得了評論界的讚譽，你在金球獎上的獲獎數量不斷增長，現在，你還獲得了奧斯卡提名。我的問題在於這樣做能帶來哪些商業利益，以及實現這些利益需要付出多少成本。這或許是一個開放式的問題，但目前為止，讓這些電影有機會被考慮入圍需要花費你多少錢？那麼，企業從中獲得收益的時間範圍是怎麼樣的呢？

Well, you've seen the expansion just last year within the confines of our existing content budget. So we're growing -- it's how we're choosing to bring the incremental spending to the table in terms of the bigger breadth and scale of films, but not taking it away from our growth in series, which is also growing, and particularly in our local language series, which we've reported before that we're growing by 130 seasons of local language series around the world as well. So to me, I look at it as the growth -- the benefit to the business is the growth that you're seeing.

嗯，你們已經看到了，就在去年，我們在現有內容預算範圍內實現了擴張。所以我們正在發展壯大——我們選擇將新增支出用於擴大電影的廣度和規模，但不會因此減少我們在劇集方面的增長，劇集也在增長，尤其是我們的本地語言劇集，我們之前報道過，我們在全球範圍內也增加了 130 季的本地語言劇集。所以在我看來，我認為成長——企業從中獲得的益處就是你所看到的成長。

And I would just add to that. So you'll see that if we further our reputation for doing well for content -- sorry, for talent by being one of the best in the world at winning awards for our talent, then the business benefit is that we will win deals that we wouldn't have otherwise won for incredibly entertaining content. So think of all of our awards work as a really smart way to make us the best home for talents in the world.

我還要補充一點。所以你會發現，如果我們能進一步鞏固我們在內容（抱歉，是人才）方面的良好聲譽，成為世界上為人才贏得獎項的最佳團隊之一，那麼商業上的好處就是，我們將贏得一些原本無法贏得的交易，而這些交易的前提是我們的娛樂內容非常精彩。所以，請把我們所有的頒獎工作看作是一種非常明智的方式，使我們成為世界上人才的最佳歸宿。

And I think it's also worth noting that there is a consumer component to this, too. I mean some of our members around the world use the awards pieces as a sign of what they wanted to watch. So that when we present those -- that information to them, we actually see them respond to that. So there's an immediate benefit there as well.

我覺得還有必要指出，這其中也牽涉到消費者因素。我的意思是，我們世界各地的一些會員會把這些獲獎作品當作他們想看的影片的標誌。所以當我們向他們展示這些資訊時，我們實際上可以看到他們對此作出了反應。所以這樣做也有直接的好處。

And I just want to point one more time that there is a -- typically, there seems to be a big gap between critical acclaim and award-winning and popular. And we are really trying to do, and we have in the past quarter, achieved both, meaning we are bringing popular film to the market and at such a high quality that's also being recognized by the critics and by the awards groups.

我只想再次指出，通常情況下，評論界的讚譽和獲獎作品以及流行作品之間似乎存在很大的差距。我們一直在努力做到這一點，而且在過去的一個季度裡，我們已經實現了這兩個目標，這意味著我們向市場推出了廣受歡迎的電影，而且質量非常高，也得到了評論家和頒獎機構的認可。

Sorry, Mike, and I just want to chime in, just to that point, it is working already. The model is working in terms of seeing the return to our business. I mean that programming at that level of diversity and quality across such a broad member base ultimately is driving member satisfaction. It's growing our member base. It's growing our revenues. If you've seen, roughly 30% revenue growth this year. We're growing our profits, both our profit margin and up to $2.6 billion of operating profit this year. We're delivering on our cash flow objectives, including on a path to improve our cash flow profile next year, as you saw in the letter, a material improvement from negative $3.3 billion this year to roughly negative $2.5 billion next year on that path to cash flow positive over the coming years. So you're seeing it play out in the business model already.

抱歉，麥克，我只想插一句，就這一點而言，它已經奏效了。從我們業務的回報來看，這種模式是有效的。我的意思是，在如此廣泛的會員群體中，提供如此多樣化和高品質的節目，最終會提升會員滿意度。它正在擴大我們的會員基礎。它正在增加我們的收入。如你所見，今年營收成長約 30%。我們的利潤正在成長，利潤率和今年的營業利潤都達到了26億美元。我們正在實現現金流目標，包括改善明年的現金流狀況，正如您在信中看到的那樣，現金流狀況將從今年的負 33 億美元大幅改善至明年的負 25 億美元左右，並有望在未來幾年實現正現金流。所以你已經在商業模式中看到它的體現了。

And to that point, Spence, my next question for you was really around your cash investment on content in the coming year. Can you share a specific in terms of the growth that you're anticipating there? And then also can you help us with the modeling side, which is the amortization of that content, the relationship between that amortization and the cash investment?

史賓塞，說到這裡，我的下一個問題其實是關於你來年在內容上的現金投資。您能否具體分享您對該地區成長的預期？另外，您能否在建模方面幫助我們，也就是內容的攤銷，以及攤提與現金投資的關係？

Yes, sure. So we'll continue to increase our content investment across the board next year because, as I just said, we're seeing a great return on that in terms of our business model. Our content amort is just a little under $10 billion this past year in 2019. You should expect to see, without specific guidance, a similar level of growth, and that kind of -- it grew, I'd say, roughly in that 20% range this past year. And you should assume we'll continue to invest at those types of levels this year. The conversion -- or the relationship between our cash spend and our -- on our amortization, that ratio was about 1.6, meaning 1.6x the cash investment relative to our amortization is about $15 billion of cash investment this past year in 2019. I think you should see that ratio continue to come down a little bit, again, without a specific number, but we're scaling into the business.

當然可以。因此，明年我們將繼續全面增加內容投入，因為正如我剛才所說，就我們的商業模式而言，我們看到了巨大的回報。2019 年，我們的內容攤提額略低於 100 億美元。在沒有具體指導的情況下，你應該會看到類似的成長水平，而且——我認為——去年它的成長率大致在 20% 左右。你應該預料到，我們今年將繼續保持這樣的投資水準。我們的現金支出與攤銷之間的轉換率（或現金支出與攤銷之間的關係）約為 1.6，這意味著 2019 年現金投資額約為 150 億美元，相當於現金投資額的 1.6 倍。我認為你會看到這個比例繼續略微下降，雖然沒有具體的數字，但我們正在擴大業務規模。

So we've moved a long way in this business model transition from what was once an all licensed content business to now the well over 50% of our cash spend is on originals. The future of our business is mostly originals. And we've very much transitioned there. So that puts less sort of pressure on our working capital. So that's playing out in the numbers as well. So similar growth rate in amortization, but it's getting closer in terms of our cash versus amort, and you're seeing that in terms of the improvement in the cash flow trajectory next year.

因此，我們在商業模式轉型方面取得了長足的進步，從曾經完全依賴授權內容的業務，到現在超過 50% 的現金支出都用於原創內容。我們業務的未來主要取決於原創性。我們已經基本上過渡到那種狀態了。這樣一來，我們的營運資金壓力就小了很多。所以，這一點也體現在數據中了。因此，攤銷的成長率相似，但現金與攤銷的比率正在縮小，從明年現金流軌跡的改善中可以看出這一點。

And Mike, I'm sure you realized it, but it is a huge milestone in our growth of last year being peak negative free cash flow. And so we're on the glide path slowly towards positive free cash flow. We're excited about that, but that's not coming from shrinking back our content spending. That's coming from the increase in revenue and the operating income.

麥克，我相信你已經意識到了，但去年我們自由現金流達到負峰值，這是我們發展歷程中的一個重要里程碑。因此，我們正穩步朝著正自由現金流的目標邁進。我們對此感到興奮，但這並非源自於我們削減內容支出。這主要來自收入和營業利潤的成長。

Right. Great. So let's pull it back a little bit and talk about some of the -- a couple of additional content issues or topics, if you will. Friends, a big title. I believe one of your more popular titles came off the service at the end of 2019. I realize we're only 3 weeks in, but you do see the data real time. Has this content being moved off the platform impacted your consumer engagement, your member engagement at all?

正確的。偉大的。那麼，讓我們稍微回顧一下，談談一些——或者說，幾個額外的內容問題或主題。《老友記》，一個響亮的名字。我相信你們比較受歡迎的一款遊戲在 2019 年底從服務中下架了。我知道現在才過了三週，但你可以即時看到數據。這些內容從平台移除是否對您的消費者互動或會員互動產生了任何影響？

Nothing that we've seen or can measure.

我們目前還沒有發現或測量到任何異常。

Okay. So let's also talk about viewership then. A couple of things. I had a question here, and then you gave us an entire page of viewership metrics in the letter.

好的。那麼，我們也來談談收視率吧。有幾件事。我這裡有個問題，結果你在信裡給了我們一整頁的收視率指標。

Mike, I should probably put a little more color on that simple answer. That's just to say, we've had, over the years, incredible popular product come on and off the service and expires. And typically, what happens is our members, through our incredible personalization, deep library and broad library, are able to find their next favorite show. And that's -- it will happen with Friends fans, and some of them will find it elsewhere, and some of them will find their next favorite show.

麥克，我或許應該給這個簡單的答案再添一點細節。也就是說，多年來，我們有很多非常受歡迎的產品上線、下線，然後過期失效。通常情況下，我們的會員可以透過我們強大的個人化服務、豐富的片庫和廣泛的資源，找到他們下一個最喜歡的節目。這種情況會發生在《老友記》的粉絲身上，有些人會在其他劇集中找到類似的節目，有些人會找到他們下一個最喜歡的劇集。

Mike, just about 10 years ago, we dropped -- we had to drop all the Disney content, not phased out like we are, but all the ones we added to the Starz deal. And we were all worried about the big impact. And instead, people came back, the magic of the personalized service, and they're able to find other things to watch, and viewing growth just kept rising.

麥克，大約 10 年前，我們不得不放棄所有迪士尼的內容，不是像現在這樣逐步淘汰，而是放棄了所有我們添加到 Starz 協議中的迪士尼內容。我們都很擔心會造成巨大影響。結果，人們又回來了，這就是個人化服務的魔力，他們能夠找到其他觀看的內容，觀看量也持續增長。

Yes. And we've seen that phenomenon over and over again, even in -- one that's maybe even more dramatic than that was all of the Nickelodeon content when they came off and was completely displaced by other kids watching overnight. I should say, all equally good content, just people had the ability to find something new.

是的。我們已經一次又一次地看到了這種現象，甚至在——一個可能比這更戲劇性的例子是——尼克兒童頻道的所有節目停播後，完全被其他孩子一夜之間觀看的節目所取代。應該說，所有內容都一樣優秀，只是人們有能力發現新的東西。

Sure. Understood. And so within that, what I was coming to is the viewership metrics that you provided in the letter for a number of your programs. I'd be curious if you wanted to highlight something that stood out to you, but I'll tell you something that stood out to me is the information you provided around -- about The Crown. Okay. So in particular, season 3 saw growth in early season viewing. And yet it's still, I think, by the metric, 21 million households through the first 4 weeks of season 3 compared to 73 million households worldwide for the series overall. And I guess what strikes me is that your members have enough content that even though that was important, the 73 million, and 21 million was a big step-up, there's still 52 million yet to watch it so...

當然。明白了。因此，我最終要討論的是您在信中提供的多個節目的收視率指標。我很想知道你是否想重點介紹一些讓你印象深刻的事情，但我可以告訴你，讓我印象深刻的是你提供的關於《王冠》的資訊。好的。尤其值得一提的是，第三季的早期收視率有所成長。但我認為，以統計標準來看，第三季前 4 週的收視家庭數為 2,100 萬戶，而該劇在全球範圍內的總收視家庭數為 7,300 萬戶。我覺得最讓我驚訝的是，你們的會員擁有如此多的內容，即使那次7300萬和2100萬的觀看量都很重要，這是一個很大的進步，但仍然有5200萬人等著觀看…

Correct. But that metric -- what that first 28 days doesn't capture also are things like brand-new viewers to season 1 that just started in the ramp-up to season 3. The show has been incredibly durable in the U.K. and the U.S. and around the world.

正確的。但這個指標——也就是前28天的收視率——並沒有反映出一些情況，例如在第三季開播前夕，第一季的新觀眾開始觀看這部劇。這部劇在英國、美國乃至全世界都擁有驚人的持久力。

How does that compare to other key shows, right? I understand that every show doesn't behave like The Crown. But is that viewership pattern something that -- somewhat similar for a show like, let's say, Stranger Things that has 3 seasons and people...

與其他重要節目相比，情況如何？我知道不是每個劇集都像《王冠》那樣。但是，這種收視模式是否也適用於像《怪奇物語》這樣只有三季、觀眾人數眾多的劇集呢？

It's so unique. Sometimes a show can enter the zeitgeist in such a loud way like Stranger Things season 3 around the Fourth of July phenomenon, everything that happened that a lot of that viewing pops like that. Something similar we saw with a huge launch for Witcher, which was kind of pent-up demand for known IP. But man, the show delivered for people and delivered viewing hours for us. And people loved it right out of the gate. Other shows come out and they pop, and they're dependable and they build, and people are going to watch it as soon as they finish what they're watching right now. So it's very different from show to show. I think you could see that in that list of how those shows will perform. And sometimes, that is a really great indicator of its full year performance. And sometimes it's -- those shows will continue to build on their positive word-of-mouth and become even bigger over time.

它太獨特了。有時候，一部劇集會以非常響亮的方式進入時代精神，就像《怪奇物語》第三季在七月四日美國獨立日期間那樣，當時發生的一切使得該劇的收視率迅速飆升。《巫師》的大規模發售也出現了類似的情況，可以說是人們對知名IP積壓已久的需求。但說真的，這節目既滿足了觀眾的需求，也為我們帶來了不少觀看時間。人們從一開始就非常喜歡它。其他一些劇集一播出就火了，它們很穩定，而且不斷發展壯大，人們看完現在正在看的劇集後就會去看它們。所以每個節目都大不相同。我認為你可以從那份節目表現預測清單中看出這一點。有時，這確實能很好地預示其全年的業績。有時候，這些節目會繼續憑藉良好的口碑，隨著時間的推移變得越來越受歡迎。

I'd like to ask a couple of questions about product and distribution. So Greg, I'd like to come back to the topic of pricing. We spoke a little bit about the U.S., but you have expanded your mobile-only plans, I believe, during the quarter. Can you talk about where that is now? I think it's India, Indonesia, I believe Malaysia. But maybe the balance between what has become a more permanent part of your offering, what's still being tested and how we should think about that mix going forward?

我想問幾個關於產品和分銷的問題。格雷格，我想回到定價這個主題。我們稍微談到了美國市場，但我相信，在本季度，你們擴大了僅限行動裝置的計畫。您能說說它現在的情況嗎？我認為是印度、印尼，還有馬來西亞。但或許應該考慮的是，哪些內容已經成為您產品/服務中更穩定的一部分，哪些內容仍在測試中，以及我們應該如何看待這種組合的未來發展？

Yes. And you've got the 3 countries correct. And we've seen in the performance across those 3 countries is that because we've added this price at a lower price point, this tier at a lower price point, we've been able to add incremental subscribers, which is great. We've seen an increase in retention, not only at that mobile plan, but in other plans as well. And net, that's a revenue-positive action for us. And so we're super excited about that. We think that that's a pretty good indicator that there might be other countries around the world where that kind of offering will work as well. So we're going to continue to test both that in different countries and see how that goes. We're also -- we've got a bunch of different, other approaches that we're going to try out, and we'll really try and be active and innovative in that area to try and improve the accessibility of the service for more and more people around the world, but in a way which we think is long-term revenue optimizing as well.

是的。你把這三個國家都說對了。我們從這三個國家的表現中看到，由於我們以較低的價格增加了這個價格檔次，我們得以增加訂閱用戶，這很棒。我們發現用戶留存率有所提高，不僅是行動方案用戶，其他方案用戶也是如此。總的來說，這對我們來說是一項能帶來正收益的舉措。所以，我們對此感到非常興奮。我們認為這很好地表明，世界上其他一些國家可能也適合採用這種模式。所以我們會繼續在不同國家進行測試，看看效果如何。我們還有很多其他不同的方法要嘗試，我們會在這個領域積極創新，努力提高這項服務的可及性，讓世界各地越來越多的人能夠享受到這項服務，同時我們認為這種方式也能實現長期的收入最大化。

Can you expand on that as well in terms of expanding that availability?

您能否再詳細談談如何擴大這種可用性？

I mean really, I'd say that we anticipate that we'll do more testing of the mobile plan in more territories. That's probably the one to talk about at this point, and then we'll sort of see what else works through our testing as we go.

我的意思是，我們預計會在更多地區對行動套餐進行更多測試。目前來說，這可能是我們應該討論的重點，然後我們會邊測試邊看看還有哪些方法有效。

Okay. Great. And then over the weekend, I believe it came out on Sunday, an expanded, I think, you referred to as even strengthened partnership with Sky. What -- how did that become a stronger partnership?

好的。偉大的。然後，我相信是在上週末，也就是星期日，公佈了與天空電視台進一步加強的合作關係，我想你也稱之為進一步加強的合作關係。什麼？ ——這怎麼會發展成更牢固的合作關係？

I think what we are seeing is there's more and more opportunity that we're finding through, whether it's mobile operators, pay-TV operators, ISPs, to reach out to a customer segment that while we're probably growing with, in general, we can actually accelerate that growth. And so it starts by being available on the set-top box or the device that they're using to watch TV, and we can put Netflix there and make it easy to see the service and to potentially sign up there. But increasingly now with bundles, we've removed yet another point of friction. So that's just a part of their offering, and they can just -- we can do a call to action, like right in front of them like Stranger Things, it's launching right now, watch. And that's a very effective way to introduce people to the service. But also we're finding now with co-marketing programs and other things that we're getting more sophisticated at, we can actually do a more effective job of reaching out to more of those members to be around the world.

我認為我們看到的是，透過行動電信商、付費電視業者、網路服務供應商等管道，我們發現了越來越多的機會，可以接觸到我們可能整體上正在成長的客戶群，而我們實際上可以加速這一成長。因此，首先要讓用戶能夠在機上盒或他們用來觀看電視的裝置上使用 Netflix，我們可以把 Netflix 放在那裡，讓用戶輕鬆看到這項服務，並有可能在那裡註冊。但如今透過捆綁銷售，我們又消除了一個摩擦點。所以這只是他們提供的產品的一部分，他們可以——我們可以發出行動號召，就像《怪奇物語》現在正在上線一樣，快來看。這是向人們介紹這項服務的一種非常有效的方法。但我們也發現，透過聯合行銷計劃和其他我們越來越擅長的手段，我們實際上可以更有效地接觸到世界各地的更多會員。

You brought up the topic of bundling. Two kind of questions with respect to bundling or different pricing packages. The first is a question of the need for consumers for this reaggregation of these multiple services. And if that is the case, perhaps a third-party would like to or should be taking some portion of the payment for adding value. I guess my question is your position on the need for some sort of aggregation of these multiple services. My second question is around annual pricing versus monthly pricing and perhaps a discount for consumers who choose to take an annual plan. Either of those -- how do either of those factor into your thoughts here?

你提到了捆綁銷售的話題。關於捆綁銷售或不同定價方案，有兩種類型的問題。首先，消費者是否需要這種多種服務的重新整合？如果情況確實如此，或許第三方會希望或應該獲得部分報酬，以表彰其創造的價值。我想問的是，您對將這些多個服務進行某種形式的整合的必要性有何看法？我的第二個問題是關於年付價格與月付價格，以及選擇年付計劃的消費者是否可以享受折扣。這兩種情況──它們對你現在的想法有何影響？

Yes. I think we'll see sort of what the right solution is for consumers as we shift to this online streaming world. And I anticipate that there are models that make sense where they will bundle multiple content services together and make it more sort of easier for consumers to access that. And that might be the effect that we're seeing. But really, most of the bundles that we have are either connecting to an existing pay-TV, sort of legacy pay-TV service, or they are connecting to things like your mobile plan or your Internet plan. So I think there's multiple different opportunities to find the right mix where we're able to introduce Netflix as part of a set of offerings that just make it simple for people to sign up, and it's logical and it's intuitive for them to go do so.

是的。我認為，隨著我們向線上串流媒體時代轉型，我們會看到對消費者而言最合適的解決方案是什麼。我預期會有一些模式能夠將多個內容服務捆綁在一起，讓消費者更容易存取這些服務。這或許就是我們看到的現象。但實際上，我們的大多數方案要么是連接到現有的付費電視服務（類似於傳統的付費電視服務），要么是連接到您的手機套餐或網路套餐等。所以我認為有很多不同的機會可以找到合適的組合，將 Netflix 作為一系列服務的一部分推出，讓人們可以輕鬆註冊，而且註冊過程對他們來說合乎邏輯且直觀。

And the likelihood is that we have your favorite show or your favorite movie raises the chances that you're going to figure out how to get to us as well.

而且，我們很可能擁有你最喜歡的節目或電影，這增加了你找到我們的機會。

That's right. And then you also -- you mentioned, I think, an annual -- a question on annual.

這是正確的。然後你還——我想你提到了一個年度問題——一個關於年度的問題。

That's right.

這是正確的。

Yes. So I think it's an interesting model. And certainly, we see some -- there's -- on legacy plans, there are sort of some instances of that. There are certain countries around the world where that's a more common standard, right? So we want to experiment with that and test that out and understand if that's a more effective way for our members to access us. So we'll go do that, and we'll sort of hear from them, if that's something that's more effective or not. We don't know yet.

是的。所以我認為這是一個很有趣的模型。當然，我們看到一些——確實有一些——在傳統方案中，存在一些這樣的例子。世界上有些國家更普遍採用這種標準，對吧？所以我們希望嘗試一下，測試一下，看看這是否是會員聯繫我們的更有效方式。所以我們會去試試，然後聽聽他們的回饋，看看這種方法是否更有效。我們目前還不知道。

Okay. I'd like to revisit the topic of advertising as a source of revenue or a means for your members to pay you for access to the service. Remind us -- we talk about it a lot. Every quarter, the topic comes up again. So remind us why advertising is not a right option, given that you do have a focus on providing your members with some optionality in terms of their way to enjoy the service.

好的。我想再次探討廣告作為收入來源或會員付費使用服務的一種方式這個主題。提醒我們一下——我們經常談論這件事。每個季度，這個話題都會再次出現。那麼，既然您專注於為會員提供享受服務方式上的選擇，請您提醒我們為什麼廣告不是正確的選擇。

Yes, Mike, I think we addressed this last quarter in the letter, but I'll go over it again, which is Google and Facebook and Amazon are tremendously powerful at online advertising because they're integrating so much data from so many sources. And there's a business cost to that, but it makes the advertising more targeted and effective. And so I think those 3 are going to get most of the online advertising business. And then to grow $5 billion or $10 billion advertising business, you have to rip that away from other advertisers. In this case, say -- or other providers, Amazon, Google and Facebook, which is quite challenging. So don't think of that as -- in the long term, there's not easy money there. And instead, we think if we don't have exposure to that, the positive side is we're a much safer place.

是的，麥克，我想我們在上個季度的信中已經談到了這一點，但我再重申一遍，那就是谷歌、Facebook 和亞馬遜在線上廣告方面非常強大，因為它們整合了來自眾多來源的大量數據。當然，這樣做會帶來一定的商業成本，但卻能讓廣告更具針對性和有效性。所以我認為這三家公司將會佔據大部分的網路廣告業務。而要發展50億美元或100億美元的廣告業務，就必須從其他廣告商搶走這些市場份額。在這種情況下，比如說——或者其他供應商，亞馬遜、谷歌和Facebook，這相當具有挑戰性。所以不要認為——從長遠來看，那裡賺不到容易的錢。相反，我們認為，如果我們不接觸那些東西，好處就是我們會更安全。

We're not integrating everybody's data. We're not controversial that way. We've got a much simpler business model, which is just focused on streaming and customer pleasure. So we think with our model that we'll actually get to a larger revenue, larger profits, larger market cap because we don't have the exposure to something that we're strategically disadvantaged at which is online advertising against those big 3, which, over the next 10 years, are just going to integrate incredible amounts of data about everybody that we won't and we're not trying to have access to. So that's why we're really pretty confident that the best business model is this way certainly in the long term.

我們並沒有整合所有人的數據。我們在這方面並不具爭議性。我們採用的是一種更簡單的商業模式，只專注於串流媒體播放和提升客戶滿意度。所以我們認為，憑藉我們的模式，我們實際上會獲得更高的收入、更高的利潤、更大的市值，因為我們沒有像三大巨頭那樣，在網路廣告領域處於戰略劣勢。未來十年，這三大巨頭將會整合大量的個人數據，而我們既不會，也不打算取得這些數據。所以，正因如此，我們非常有信心，從長遠來看，這無疑是最佳的商業模式。

I do think that that last point is something we do hear people lose sight of sometimes, which is you are not aggregating an immense amount of data about your viewers. You have viewership habits. But beyond that, I think correct me if I'm wrong, you don't collect a significant amount of personal data that will be used to target advertising. Is that accurate?

我確實認為最後一點是人們有時會忽略的，那就是你並沒有收集到關於觀眾的大量數據。你有收視習慣。但除此之外，如果我沒記錯的話，你們不會收集大量用於定向廣告的個人資料。準確嗎？

We don't collect anything. We're really focused on just making our members happy, and we're not tied up with all that controversy around advertising. And again, if you wanted to succeed in online advertising, you can't just have a little data. To keep up with those giants, you've got to spend very heavily on that and track locations and all kinds of other things that we're not interested in doing. We want to be the safe respite where you can explore, you can get stimulated, have fun, enjoy relax and have none of the controversy around exploiting users with advertising.

我們不收集任何東西。我們真正關注的是如何讓我們的會員滿意，我們不想捲入與廣告相關的各種爭議。再說一遍，如果你想在網路廣告領域取得成功，光是擁有少量數據是不夠的。為了跟上這些巨頭的步伐，你必須在這方面投入巨資，追蹤位置以及各種我們不想做的事情。我們希望成為一個安全的休憩之所，讓您可以探索、獲得啟發、享受樂趣、放鬆身心，而無需擔心因廣告而引發的爭議。

Now one of the biggest changes that you guys have made in a while with respect to what you shared with us is the geographic breakdown that you're providing now with respect to your actual. So maybe just briefly, can you remind us the reason that you made this change? We have had some questions whether it was somewhat suggested or required of you. So why did you make the change? And then I do have a couple of specific questions about the markets, if I could.

現在，你們最近做出的最大變化之一，與你們分享的內容相比，就是你們現在提供的實際情況的地理細分。那麼，您能否簡要地提醒我們一下，您做出這項改變的原因是什麼？我們收到了一些問題，詢問這是否是建議還是強制要求您做的。那你為什麼做出改變呢？如果可以的話，我還有幾個關於市場方面的具體問題。

Spencer, you want to handle that?

史賓塞，你想處理這件事嗎？

Sure. So to answer your question, Mike, no, this was not a required change. This was a change that we made. And as we talked about, it was to -- we always evolve our view of our business as our business changes. And with our launch of rest of the world in 2016, we're basically a fully global company ex China. So we have increasingly been looking at the business internally along these 4 regions. So we want to map our external reporting and align it with how we look at it internally. So it was not a requirement, but our choice.

當然。所以回答你的問題，麥克，不，這不是必須的改變。這是我們所做的改變。正如我們之前討論過的，隨著業務的變化，我們對業務的看法也會不斷改變。隨著我們在 2016 年將業務拓展到世界其他地區，除中國以外，我們基本上已經是一家完全全球化的公司了。因此，我們越來越多地從內部角度審視這四個領域的業務。因此，我們希望梳理對外報告的方式，並使其與我們內部看待問題的方式保持一致。所以這不是硬性規定，而是我們的選擇。

So we worked hard internally to not be U.S. and international. There's no such thing as international. There's a bunch of nuance of every market around the world. And part of our development from -- and originally, just domestic companies to lose those kinds of distinctions and instead think of it as 4 equal regions, and we're growing all of them, and we're sophisticated about all of them. And that's why we look at it in that 4-region way internally, which, of course, drives the external reporting.

因此，我們在內部努力避免成為美國公司或國際公司。根本不存在所謂的國際性。世界各地的市場都存在著許多細微差別。我們發展的一部分——最初只是國內公司——摒棄了這些區別，而是將其視為 4 個平等的區域，我們正在發展所有這些區域，並且我們對所有這些區域都非常了解。因此，我們在內部以 4 個區域的方式來看待這個問題，這當然也影響著對外報告。

It's been a great internal discipline for everybody to think about the business more that way, for sure.

毫無疑問，這種讓每個人都更能從這個角度思考業務的方式，對公司內部來說是一種很好的紀律約束。

Well, that's a great segue into some questions specifically about the nuances in these regions. Perhaps we can start with Latin America, which was your first broad international launch in 2011. And so what we noticed, and of course, this quarter, you had record member growth in each of the regions, but it does look like Latin America is perhaps closer to being mature with respect to its growth trajectory. At the same time, we would look at the data and say, it's still -- the penetration level of broadband households is still very low in that region. Can you characterize for us where you think we are in the life cycle of member growth in that region?

嗯，這正好引出了一些關於這些地區細微差別的具體問題。或許我們可以從拉丁美洲開始，那是你們在 2011 年首次大規模國際推廣的地區。因此我們注意到，當然，本季各個地區的會員成長都創下了紀錄，但拉丁美洲的成長軌跡似乎可能更接近成熟。同時，我們查看數據後發現，該地區寬頻家庭的普及率仍然很低。您能否為我們描述一下您認為我們在該地區會員成長生命週期中所處的階段？

Spence, do you want to take that?

史賓塞，你想拿嗎？

Yes, sure. I would say across the board, we're still early days, right? So even with the roughly 167 million members across the globe and big membership in Latin America, you can see what -- we're still roughly kind of in that 30% penetration. We think as pay-TV households -- you've seen around the world, whether it's pay-TV or broadband households, we don't see why we can't get into all of those households over time. So yes, we're a bit more mature in Latin America than perhaps we are in APAC and in some specific countries, but we're continuing to grow. It happens to be a region where, similar to the U.S., our price increases were a bit more significant than in other parts of the world. So I think that may have been a bit of a headwind as well. We had foreign exchange working against us more meaningfully in Latin America. But I'd say, in general, very long runway. We continue to see both global content and local content work really well in that region. So we'll -- I think you'll see continued healthy growth on the horizon.

當然可以。總的來說，我覺得我們還處於早期階段，對吧？所以即使我們在全球擁有大約 1.67 億會員，並且在拉丁美洲擁有龐大的會員群體，你也能看到——我們的滲透率仍然大約在 30% 左右。我們認為，作為一個付費電視家庭——正如你在世界各地所看到的，無論是付費電視家庭還是寬頻家庭，我們不明白為什麼我們不能隨著時間的推移進入所有這些家庭。所以，是的，我們在拉丁美洲的業務可能比在亞太地區和某些特定國家要成熟一些，但我們仍在不斷成長。與美國類似，我們這個地區的物價上漲幅度比世界其他地區大一些。所以我覺得這也可能是個不利因素。在拉丁美洲，外匯波動對我們造成的不利影響更為顯著。但總的來說，我認為跑道非常長。我們看到，全球內容和本地內容在該地區都取得了非常好的效果。所以，我認為你會看到未來一段時間持續的健康成長。

And then you just -- Spence, you just mentioned APAC, and there's a couple of questions here. One is because this region has both Australia, New Zealand, so larger English-speaking markets and a large emerging market population, the first question is can you share at all the sort of balance of subscriptions in that market between those 2. And I would think there's still a relatively high ASP there, which would imply some mix to higher-priced markets. But first, the mix there. And then also should we expect that ASP to come down based on what you're seeing now with respect to adoption of the lower-priced mobile plans?

然後你就——史賓塞，你剛才提到了亞太地區，這裡有幾個問題。一方面，因為該地區既有澳洲和紐西蘭這兩個較大的英語市場，又有龐大的新興市場人口，所以第一個問題是，您能否分享一下這兩個市場在訂閱用戶數量上的大致平衡情況？另一方面，我認為該地區的平均售價仍然相對較高，這意味著其中一部分用戶可能來自價格較高的市場。但首先，我們來看看那裡的混合物。那麼，根據您目前觀察到的低價行動套餐的普及情況，我們是否應該預期平均售價會下降？

I'd say in terms of the mix, and others can jump in as well, but we don't break it down specifically by country. I think your takeaway should be, though, that we're seeing healthy growth in all of these markets. So across Japan, Korea, India, I mean all of these markets, we're increasing that content market fit, we're getting much smarter about the markets in both the -- as I say, the content we offer as well as the pricing and packaging, bundling and distribution to our members and payment methods for our members. So I think we're getting better literally every quarter, every year, and that's playing out in terms of very healthy growth across those markets.

就組合而言，我認為，其他人也可以加入討論，但我們不會具體按國家/地區細分。但我認為，你應該看到的是，所有這些市場都呈現健康成長。因此，在日本、韓國、印度，我的意思是所有這些市場，我們正在提高內容與市場的契合度，我們對市場的了解也越來越深入——正如我所說，這體現在我們提供的內容、定價、包裝、捆綁銷售、分發給會員以及會員的支付方式等方面。所以我認為我們每季、每年都在進步，這體現在這些市場非常健康的成長。

And then with respect to pricing, certainly, the pricing is different in every country around the world. But we don't -- we're not managing to ARPU. We're managing to revenue maximization, as we talked about earlier. So we're not going to provide a long-term forecast. Obviously, as we have lower-priced mobile offers, that's going to bring down a blended ARPU in a country or in a market. But if we're doing that in a revenue-accretive way, we think that's great for our long-term business. We're growing subscribers, and we're growing revenue.

至於價格方面，當然，世界各國的定價都不一樣。但我們做不到——我們無法實現每用戶平均收入 (ARPU)。正如我們之前討論的那樣，我們正在努力實現收入最大化。因此，我們不會提供長期預測。顯然，隨著行動套餐價格的降低，一個國家或一個市場的綜合ARPU值將會下降。但如果我們以增加收入的方式這樣做，我們認為這對我們的長期業務發展大有裨益。我們的用戶數量正在成長，收入也在成長。

And our local content, our original content in Japan and Korea, by way of example, are becoming much more sophisticated about what is super impactful in those countries, plays pan regionally and occasionally plays globally. So those investments are paying up in the form of things like The Naked Director, which was a big, big hit for us in Japan, and Kingdom, which has a second season coming up out of Korea, that's been a big global hit for us. And as you think about the exciting things that happened in the content space, a movie like Parasite coming out of Korea, that's done $140 million globally, $100 million in Korea and about $40 million outside, and the expansion of people finding stories from around the world is going to only make the opportunity bigger and bigger.

例如，我們在日本和韓國的本地內容和原創內容，正變得越來越成熟，它們了解哪些內容在這些國家具有超強的影響力，哪些內容可以在區域範圍內產生影響，哪些內容偶爾可以在全球範圍內產生影響。所以這些投資正在獲得回報，例如《裸體導演》在日本取得了巨大的成功，《王國》在韓國即將推出第二季，這部劇在全球範圍內也取得了巨大的成功。當你想到內容領域發生的激動人心的事情時，例如韓國電影《寄生蟲》，它在全球獲得了 1.4 億美元的票房，其中韓國本土票房為 1 億美元，海外票房約為 4000 萬美元，而人們發現來自世界各地的故事，只會讓機會越來越大。

Mike, we have time for 1 or 2 more questions, please?

麥克，我們還有時間再問一兩個問題嗎？

Okay. Let me hit on EMEA, and then I'll get a wrap-up question here. I think in that European, Middle East and Africa market, it's somewhat similar in terms of some mature markets and some emerging markets and opportunities there. So as you think about that market growth opportunity, is the answer similar to the same as the question about Asia? And I think the question is a little bit rooted in we do have some specific mobile-only lower-price plans in Asia that we've been focused on, but should we think about that EMEA market as perhaps following a similar pattern?

好的。讓我先談談歐洲、中東和非洲地區（EMEA），然後這裡會有一個總結性的問題。我認為歐洲、中東和非洲市場在某種程度上是相似的，既有一些成熟市場，也有一些新興市場，而且都存在著一些機會。那麼，當您考慮這個市場成長機會時，答案是否與亞洲的問題類似？我認為這個問題有點根源於我們在亞洲確實有一些專門針對行動裝置的低價套餐，我們一直專注於此，但我們是否應該考慮讓 EMEA 市場也遵循類似的模式呢？

Greg, do you want to take that pricing? I would say, in terms of the opportunity, we see a huge opportunity in EMEA. It's a multiple of the number of addressable, their pay-TV or broadband households, as you see, for example, in the UCAN or U.S. and Canada region. We're less than 20% penetrated in the market. You've seen it's driving more than 50% of our paid member additions in recent quarters or roughly 50%. So we're low penetrated, and we're growing in a very healthy clip in that market. I'll turn to Greg though in terms of pricing strategy.

格雷格，你接受這個價格嗎？就機會而言，我認為 EMEA 地區蘊藏著巨大的機會。它是可尋址用戶數量的倍數，即付費電視或寬頻家庭用戶數量，例如，在 UCAN 或美國和加拿大地區。我們在市場上的滲透率不到20%。你已經看到，在最近幾個季度，它為我們新增付費會員貢獻了超過 50% 的份額，或者說大約 50%。因此，我們在該市場的滲透率較低，但成長速度非常健康。不過，在定價策略方面，我還是會向格雷格請教。

Yes. In the pricing and plans approach, again, that region, much like APAC, has both sort of very affluent, very mature markets as well as less affluent markets. And so I anticipate that what we'll find is that we'll have a mix of plans and approaches that will spread across that region, that again will be different price points, but it will be looking to sort of maximize revenue through that mix across the entire region.

是的。在定價和計劃方面，該地區與亞太地區一樣，既有非常富裕、非常成熟的市場，也有較不富裕的市場。因此，我預計我們將會看到一系列計劃和方法在該地區推廣，這些計劃和方法的價格點也會有所不同，但其目的都是為了透過這種組合在整個地區實現收入最大化。

Great. So I'd like to conclude, again, as we did last time with a little bit of a 5-for-1 question. Last quarter, we talked about each of your -- something each of you was excited about in the coming quarter. This time, I'd like to ask -- you read press analyst reports, et cetera, about your company. I'd love to hear your take on what you think is most misunderstood about the company or least well appreciated about the company. So last -- as with last quarter, I'll start with Spencer and go from there.

偉大的。所以，我想再次像上次一樣，以一個五合一的問題來結束今天的節目。上個季度，我們討論了你們每個人對即將到來的季度感到興奮的事情。這次我想問一下──你們會閱讀有關貴公司的新聞分析報告等等嗎？我很想聽聽您對公司最容易被誤解或最不被重視的地方有什麼看法。所以最後——和上個季度一樣，我將從斯賓塞開始，然後從那裡開始。

Sure. I honestly don't think that there's that much that's misunderstood. We're a single product company. And I think we're pretty straightforward I think for most investors to understand. I think if I had to think about one thing, I personally think there's probably a bit of an overfocus on the streaming wars sort of notion, and I know it's exciting for folks to talk about the Clash of the Titans and all that kind of stuff. But I think really, the big thing that's going on is this transition from linear entertainment to streaming on-demand entertainment, which is really, really big and very similar to that transition the industry went through from broadcast to cable. And there, what you saw was a lot of those new cable networks didn't really take much share from each other but really grew together as broadcasting sort of became smaller over time. And I think that's what's really the big thing that is happening that's probably less well understood.

當然。說實話，我覺得沒有太多被誤解的地方。我們是一家只生產單一產品的公司。我認為我們的理念相當直白，大多數投資人都能理解。如果非要我說一件事，我個人認為大家可能有點過度關注串流媒體大戰之類的概念了，我知道大家很興奮地談論「諸神之戰」之類的事情。但我認為，真正發生的大事是從線性娛樂到串流媒體點播娛樂的轉變，這意義非常重大，與該行業從廣播到有線電視的轉變非常相似。然後，你會發現，許多新的有線電視網絡並沒有真正互相搶佔多少市場份額，而是隨著廣播規模的逐漸縮小而共同發展壯大。我認為這才是真正正在發生的事情，但可能還沒有被充分理解。

Thanks, Spencer. What about you, Spence?

謝謝你，史賓塞。史賓塞，你呢？

I didn't think you're going to pick on me because I got the order wrong last quarter. Okay. Yes. I'll say I think what's most misunderstood is the business model and what you see in our cash flow generally and folks thinking that we are losing money, if you will, when we -- what we've shown is that we're increasing our profitability, both growing and growing our profit margins. And what you've seen over the last few years is foreign investment as we've been going through a really kind of pretty significant transition of our business model from licensed content or you pay basically ratably for content you receive over the time that it's on the network to original content, not just licensed originals, but self-produced originals, where oftentimes we're investing many years before that content's on the service.

我沒想到你會因為我上個季度訂單出錯就針對我。好的。是的。我認為最容易被誤解的是我們的商業模式以及我們整體的現金流情況，人們普遍認為我們正在虧損，但實際上我們已經證明，我們的獲利能力正在提高，利潤率也在成長。過去幾年，我們看到的是外國投資，因為我們的商業模式經歷了相當大的轉變，從授權內容（或者說你基本上按比例付費才能在網絡上觀看的內容）轉變為原創內容，不僅是授權原創內容，還有我們自己製作的原創內容，我們經常在這些內容上線服務之前就進行多年的投資。

And we moved, as they say, well along the curve there, where the bulk of our cash spend is now on original content. So as we've gotten bigger, as we move towards originals, it just -- it fundamentally changes that cash flow profile over time. And we're a very profitable business and one that will ultimately, over the years, become meaningfully self-funding.

正如他們所說，我們在這方面取得了長足的進步，現在我們的大部分資金都投入了原創內容。隨著我們規模的擴大，隨著我們轉向原創內容，這從根本上改變了現金流狀況。我們是一家獲利能力很強的企業，而且經過多年的發展，最終將實現實質的自籌資金。

Thanks, Spence. Greg, how about you?

謝謝你，史賓塞。格雷格，你呢？

Yes. Spence actually took mine. It's my favorite sort of gap between external and internal worldview. So I'm very excited to be turning the corner on the free cash flow issue so that we can sort of put that behind us and really focus on growing the business ahead.

是的。史賓塞拿走了我的那一份。這是我最喜歡的外在世界觀和內在世界觀之間的這種差距。因此，我非常高興自由現金流問題即將解決，這樣我們就可以把這個問題拋在腦後，真正專注於未來的業務成長。

Great. And Ted?

偉大的。泰德呢？

In terms of misunderstood, I think I have to use this notion you hear every once in a while of where there's so much stuff on Netflix, everything gets lost. And I think that the opposite is true, which you'll see in that -- in those numbers that we released to you in the letter. The -- our ability to launch new brands and sustain brands over multiple seasons or multiple sequels and at a very high volume from all over the world has been unparalleled. And the idea that we can create brands out of thin air over and over again, sometimes multiple times in a week, like this past week, is something that I'm super proud of. I think it gets lost on people because they think all this content is for them. It isn't. It's just meant to be your favorite show and your favorite movie, and that's going to be something for everybody.

說到誤解，我覺得我必須借用一下你時不時會聽到的這種說法：Netflix 上的東西太多了，反而會把所有東西都淹沒掉。我認為事實恰恰相反，這一點你會在我們信中公佈的那些數字中看到。我們有能力在全球範圍內以極高的數量推出新品牌，並維持品牌在多個季度或多個續集中的運營，這方面是無與倫比的。而我們能夠憑空創造品牌，一次又一次，有時甚至一週內多次，就像上週一樣，這讓我感到非常自豪。我覺得人們之所以沒能理解這一點，是因為他們認為所有這些內容都是為他們準備的。並非如此。它旨在成為你最喜歡的節目和電影，而這將適合所有人。

And for me, it's really, we keep doing these amazing numbers, doing 8.8 in Q4 is just amazing. So happy with that. And with The Witcher performance, ending the year on a high note of a massive new franchise that will develop season after season. So if you think about the next couple of years, it's really the rate of improvement. That's the big thing, how much we're learning, and we're doing so many shows, our learning is higher, doing so many product tests, our learning is higher. And the quality of our service 2 or 3 years from now will be so much higher than it is today. That's the thing that's not well understood. Everyone focuses on how does the current service look as opposed to how good we're going to be in 3 years.

對我來說，這真的很了不起，我們不斷取得如此驚人的成績，第四季達到 8.8 的成績簡直太棒了。非常滿意。《獵魔人》的精彩表現，為這一年畫上了圓滿的句號，也為這個將會一季又一季不斷發展的龐大新系列畫上了句號。所以，展望未來幾年，關鍵在於進步的速度。最重要的是，我們學到了很多東西，我們做了很多節目，我們的學習能力也更強了；我們做了很多產品測試，我們的學習能力也更強了。兩三年後，我們的服務品質將會比現在高很多。這是人們尚未充分理解的地方。大家都在關注目前的服務狀況，而不是三年後我們會發展到什麼程度。

Thank you, Mike. Great job, and look forward to talking with all of our investors and everyone over the quarter.

謝謝你，麥克。做得好！期待在本季與所有投資者和同事們交流。