Netflix Inc (NFLX) 2021 Q4 法說會逐字稿

Hello, and welcome to the Netflix Q4 2021 Earnings Interview. I'm Spencer Wang, VP of IR and Corporate Development. Joining me today are Co-CEO, Reed Hastings; Co-CEO and Chief Content Officer, Ted Sarandos; COO and Chief Product Officer, Greg Peters; and CFO, Spence Neumann. Our interviewer this quarter is Nidhi Gupta from Fidelity. As a reminder, we'll be making forward-looking statements and actual results may vary.

您好，歡迎來到 Netflix 2021 年第四季度收益採訪。我是 IR 和企業發展副總裁 Spencer Wang。今天加入我的是聯合首席執行官 Reed Hastings；聯合首席執行官兼首席內容官 Ted Sarandos；首席運營官兼首席產品官 Greg Peters；和首席財務官 Spence Neumann。我們本季度的採訪者是來自 Fidelity 的 Nidhi Gupta。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。

Nidhi, over to you now to kick off the Q&A.

Nidhi，現在由你來開始問答。

Thank you, Spencer. Good to be with you all again. Great to see all the new content over the quarter. I've been a little less productive so I think I can blame you all for that. As usual, I'd like to start with net adds during the quarter, which came in a little bit later than you expected. Just help us understand the underperformance there.

謝謝你，斯賓塞。很高興再次和大家在一起。很高興看到本季度的所有新內容。我的工作效率有點低，所以我想我可以責怪你們所有人。像往常一樣，我想從本季度的淨增加開始，這比你預期的要晚一點。只是幫助我們了解那裡的表現不佳。

Nidhi, 8.3 million versus 8.5 million, I mean...

Nidhi，830 萬對 850 萬，我的意思是...

222 million.

2.22億。

In fairness, Nidhi said it was a little shy. So I'll take what Nidhi says. As she said, we delivered -- first, we're quite pleased with how the quarter played out. We delivered 8.3 million paid net adds. So it was just a bit shy, about 0.1% on roughly 222 million paying members.

公平地說，Nidhi 說這有點害羞。所以我會接受 Nidhi 所說的話。正如她所說，我們交付了——首先，我們對本季度的表現非常滿意。我們交付了 830 萬個付費淨添加。所以它有點害羞，大約 2.22 億付費會員的 0.1%。

And overall, we're quite pleased with how our titles performed. We had big viewing. We started the quarter with Squid Game becoming a global phenomenon, and we ended the quarter in December with big TV series like the finale of La Casa de Papel, a big returning show in The Witcher, our 2 biggest movie releases of all time.

總的來說，我們對我們的作品的表現非常滿意。我們觀看了大片。我們以 Squid Game 成為全球現像開始本季度，並在 12 月以大型電視劇結束本季度，例如《紙之家》的結局，這是我們有史以來最大的兩部電影《巫師》中的大型回歸節目。

So overall, the business was healthy. Retention was strong. Churn was down. Viewing was up. But on the margin, we just -- we didn't grow acquisition quite as fast as we would have liked to see, and on our large subscriber base, a small change in acquisition can have a pretty big flow-through in paid net adds. And again, our acquisition was growing, just not growing quite as fast as we were perhaps hoping or forecasting.

因此，總體而言，業務是健康的。保持力很強。流失率下降。收視率上升。但在邊際上，我們只是 - 我們沒有像我們希望看到的那樣快速增長收購，而且在我們龐大的用戶群中，收購的微小變化可以在付費淨增加中產生相當大的流量.再一次，我們的收購正在增長，只是增長速度不如我們希望或預測的那麼快。

Great. And as we look ahead to Q1, the guidance was a bit below kind of what was expected and what you've done in previous Q1s. Maybe just help us understand what some of the key considerations were that went into the guidance? And does it raise any concerns for you about anything structural, whether it's competition or saturation? Or does it give you any pause in terms of sort of your return on content spend?

偉大的。當我們展望第一季度時，該指導略低於預期以及您在之前的第一季度所做的事情。也許只是幫助我們了解指導中的一些關鍵考慮因素？它是否會引起您對任何結構性的擔憂，無論是競爭還是飽和？或者它是否讓你在內容支出回報方面有任何停頓？

Sure. No structural change in the business that we see. What's reflected in the guidance, we guided to 2.5 million paid net adds in Q1. And what's reflected there is pretty much the same trends we saw in Q4: so healthy retention with churn down, healthy viewing and engagement with viewing up and acquisition just growing but a bit slower than pre-COVID levels, just hasn't fully recovered.

當然。我們看到的業務沒有結構性變化。指導中反映的是，我們在第一季度指導了 250 萬付費淨增加。所反映的趨勢與我們在第四季度看到的趨勢幾乎相同：流失率保持健康，觀看和參與度增加，觀看量和獲取量都在增長，但比 COVID 之前的水平要慢一些，只是還沒有完全恢復。

And we're trying to pinpoint what that is. It's tough to say exactly why our acquisition hasn't kind of recovered to pre-COVID levels. It's probably a bit of just overall COVID overhang that's still happening after 2 years of a global pandemic that we're still unfortunately not fully out of, some macroeconomic strain in some parts of the world like Latin America in particular. While we can't pinpoint or point a straight line using -- when we look at the data on a competitive impact, there may be some kind of more on the marginal kind of side of our growth, some impact from competition but -- which, again, we just don't see it specifically.

我們正試圖查明那是什麼。很難確切地說為什麼我們的收購沒有恢復到 COVID 之前的水平。在經歷了 2 年的全球大流行之後，我們仍然沒有完全擺脫這種流行病，這可能只是整體上的 COVID 過剩，尤其是在世界某些地區，例如拉丁美洲，存在一些宏觀經濟壓力。雖然我們無法使用--當我們查看有關競爭影響的數據時，我們無法確定或指出一條直線，但在我們增長的邊緣方面可能會有更多的東西，一些來自競爭的影響，但是-- ，同樣，我們只是沒有具體看到它。

So overall, that's what's reflected in the guide. I'd say we -- our big titles are also landing, at least our known big titles, a little bit later in the quarter with Season 2 of Bridgerton in March, The Adam Project also in March. As you know, we also -- while we are taking -- changing prices in countries every quarter, in Q1 of this year, it happens to be our largest country, as we announced last week, actually our largest region with Canada as well. So that's probably a little bit more impact than a typical quarter.

總的來說，這就是指南中反映的內容。我想說我們——我們的大頭銜也在登陸，至少我們已知的大頭銜也在本季度晚些時候登陸，3 月的布里奇頓第 2 季，亞當計劃也在 3 月。如您所知，我們也在 - 雖然我們正在考慮 - 每季度改變國家的價格，在今年第一季度，正如我們上周宣布的那樣，它恰好是我們最大的國家，實際上也是我們與加拿大的最大地區。因此，這可能比典型季度的影響更大。

But Nidhi, you're right to reflect on 2 years ago, we were 10 million above plan, which was a shock. Last year, we were 10 million below or 9 million. And so the pull forward sort of makes it hard to read. In the prior years, we were very steady, so we can have confidence on incremental trends. But as Spence said, when you -- we reflect, of course, hey, that's a low guide, and we think it will be accurate. It's not sandbagged at all, kind of what's going on.

但是 Nidhi，你說得對，2 年前我們是 1000 萬以上的計劃，這是一個震驚。去年，我們低於 1000 萬或 900 萬。因此，向前推進有點讓人難以閱讀。在前幾年，我們非常穩定，因此我們可以對增量趨勢充滿信心。但正如斯賓塞所說，當你——我們當然會反思，嘿，這是一個低指導，我們認為這將是準確的。它根本沒有沙袋，這是怎麼回事。

And there's a number of potential explanations with COVID, but then we worry about hanging too much on that. There's more competition than there's ever been. But we've had Hulu and Amazon for 14 years. So it doesn't feel like any qualitative change there. And overall, confidence in streaming becomes all of entertainment. Linear dissipates over the next 10 to 20 years. Very high confidence in that thesis because everyone's coming into streaming.

並且有許多與 COVID 相關的潛在解釋，但我們擔心在這方面懸而未決。競爭比以往任何時候都多。但是我們已經擁有 Hulu 和亞馬遜 14 年了。所以感覺那裡沒有任何質的變化。總的來說，對流媒體的信心變成了娛樂的全部。線性消散在未來 10 到 20 年。對該論文非常有信心，因為每個人都進入了流媒體領域。

So like market size, very large. Our execution is steady and getting better. So for now, we're just like staying calm and trying to figure out. Again, the COVID has introduced so much noise. It just wants us to give it some pause as we work on everything we've always worked on.

所以像市場規模，非常大。我們的執行是穩定的並且越來越好。所以現在，我們只是保持冷靜並試圖弄清楚。再次，新冠病毒帶來瞭如此多的噪音。它只是希望我們在處理我們一直在做的所有事情時給它一些暫停。

And just to reiterate, I'd say we took a big bet years ago on this, that people would move on to Netflix and Netflix-type offerings to consume movies and film. That was a big, big bet that we've seen continue to go through. We have no change in our confidence in that.

重申一下，我想說我們幾年前在這方面下了很大的賭注，人們會轉向 Netflix 和 Netflix 類型的產品來消費電影和電影。這是一個很大的賭注，我們已經看到它繼續進行。我們對此的信心沒有改變。

And I think what's really been great about 2021, even through all those conditions, we were able to kind of prove out to other theses that we've bet on starting years ago one big one around our investment in international programming. We're glad that we started that 7 years ago with Club de Cuervos. And now we were betting that you could take films and series from anywhere in the world and entertain the entire world. And we were getting more -- bigger and bigger milestones against that goal.

而且我認為 2021 年真正偉大的是，即使在所有這些條件下，我們也能夠證明我們多年前就開始押注的其他論點，這是圍繞我們對國際節目的投資的一個重要論點。我們很高興我們在 7 年前與 Club de Cuervos 一起開始了這一切。現在我們打賭你可以從世界任何地方拍攝電影和連續劇，並娛樂整個世界。我們得到了更多——針對這個目標的越來越大的里程碑。

And now we have proven to have kind of global sensations from France with Lupin, from Spain with La Casa de Papel and Elite and then in the biggest way possible in 2021 with Squid Game, which has become our biggest series ever. And it is unapologetically and perfectly Korean. So it's not built to be this kind of global thing. It's proving that great storytelling from anywhere in the world can entertain the world.

現在，我們已經證明我們在法國的 Lupin、西班牙的 La Casa de Papel 和 Elite 以及 2021 年的 Squid Game 以最大的方式在全球範圍內引起了轟動，這已成為我們有史以來最大的系列。它是毫無歉意和完美的韓國人。所以它不是為了成為這種全球性的東西而建立的。它證明了來自世界任何地方的精彩故事都可以娛樂世界。

And our other big bet was our investment in big-budget feature films and our bet that we could effectively release them and compete with big theatrical releases for audience and for attention. And Red Notice this year, of course, and Don't Look Up have become our #1 and #2 most watched movies ever on Netflix. And if you look at the hours that we publish out, you can do the math and back into it. They may be the most watched movies anywhere in the world this year. So I think those 2 bets coming through, it kind of strengthens our confidence in the overall bet in the service and pleasing customers and leaning into consumer-first business models. I think we could succeed there.

我們的另一個大賭注是我們對大預算故事片的投資，以及我們可以有效地發行它們並與大型影院發行競爭觀眾和注意力的賭注。當然，今年的《紅色簡報》和《不要抬頭》已成為我們在 Netflix 上觀看次數最多的第一和第二電影。如果您查看我們發布的時間，您可以進行數學計算並重新計算。它們可能是今年全球收視率最高的電影。所以我認為這兩個賭注的出現，增強了我們對服務整體賭注的信心，取悅客戶，並傾向於消費者至上的商業模式。我認為我們可以在那裡取得成功。

Yes. No. And I think that's part of the question, right? I mean you -- this was probably the best content quarter you've had. And looking at sort of flattish subs versus previous Q4s, obviously, a great number, but it's kind of in line with what you've done the last few Q4s. What do you read from that? Is the customers sort of hurdle just higher in terms of the amount and quality of content that you need to deliver to get the same number of net adds?

是的。不，我認為這是問題的一部分，對吧？我的意思是你——這可能是你經歷過的最好的內容季度。與之前的第四季度相比，顯然，這是一個很大的數字，但這與你在最後幾個第四季度所做的一致。你從中讀到了什麼？在獲得相同數量的淨添加量所需的內容數量和質量方面，客戶的障礙是否更高？

Well, I think what, I guess, Spence was saying, we didn't see it -- we didn't see a hit to our engagement. We didn't see a hit to retention, all those things that would classically lead you to looking at competition. But it's a stew of all those things. Not only are we in a pandemic. We've kind of come in of and out of COVID at different levels in 2021, particularly the back half of 2021. So it's created a lot of bumpiness certainly and not steady linear growth, which makes it a little tougher to predict, but all the fundamentals of the business are pretty solid.

好吧，我想，我猜，斯賓塞在說什麼，我們沒有看到——我們沒有看到我們的訂婚受到打擊。我們沒有看到留存率受到影響，所有這些傳統上都會引導你關注競爭的事情。但它是所有這些東西的燉菜。我們不僅處於流行病中。在 2021 年，尤其是 2021 年下半年，我們在不同級別上進出 COVID。所以它肯定會造成很多顛簸，而不是穩定的線性增長，這使得預測變得有點困難，但所有業務的基本面相當穩固。

Got it. You announced a U.S. price increase last week. Maybe just help us understand kind of over what time frame you think this will flow through, what kind of churn you might expect.

知道了。你上周宣布了美國的價格上漲。也許只是幫助我們了解您認為這將在什麼時間範圍內流動，您可能期望什麼樣的客戶流失。

Yes, I'd say you can anticipate it flowing through over the next quarter, the quarter that we're in right now, Q1. And we largely are seeing in the price changes we've done most recently and for the earliest indications that we have in the U.S., which is still premature because we actually haven't actually rolled it out to any customers yet, what we've seen over the last couple of years, which is that sort of core theory that we have that if we've done a good job investing, the member subscription fees that they paid us into better stories, more great storytelling, bigger movies, more variety, then when we come back and ask them occasionally for a little bit more to keep that sort of cycle going, then they're generally willing to do that. And we don't see any significant disruption to the business otherwise in that regard.

是的，我會說你可以預計它會在下個季度，我們現在所處的季度，第一季度。我們在很大程度上看到了我們最近所做的價格變化以及我們在美國的最早跡象，這仍然為時過早，因為我們實際上還沒有真正將它推廣給任何客戶，我們已經在過去幾年中看到的，這是我們擁有的那種核心理論，如果我們投資做得好，他們付給我們的會員訂閱費會變成更好的故事，更精彩的故事講述，更大的電影，更多種類，然後當我們回來並偶爾要求他們多一點以保持這種循環進行時，他們通常願意這樣做。在這方面，我們沒有看到對業務的任何重大干擾。

And I would say generally, when we look at that sort of core theory and we look at also the competitors, if you look at Disney+ as an example, the other streaming services out there as well, and their ability to grow even as we've been growing as well, I think it's really strong endorsement for the core idea that consumers around the world are willing to pay for great entertainment. And it encourages us to continue that investment and to try and deliver more entertainment value and earn more of that share.

我一般會說，當我們審視這種核心理論並審視競爭對手時，如果你以 Disney+ 為例，其他流媒體服務也是如此，它們的增長能力甚至與我們一樣一直在增長，我認為這是對全球消費者願意為優質娛樂付費的核心理念的有力支持。它鼓勵我們繼續投資並嘗試提供更多的娛樂價值並獲得更多的份額。

Yes. No, it's a good point about your streaming competitors. And when I look at sort of your steady price increases in the U.S., it doesn't seem like you feel too constrained by where those competitors are priced. So is that a true statement?

是的。不，這是關於您的流媒體競爭對手的一個好點。當我看到你在美國的穩定價格上漲時，你似乎並沒有受到這些競爭對手定價的限制。那麼這是一個真實的說法嗎？

And I guess as long as you're viewing share is sort of multiples of any other streaming service in the U.S., should we think about your price relative to cable actually as we sort of think about your runway -- not that you'll get there overnight, but as we think about your runway, is that really sort of the comparison we should be thinking about as opposed to other streaming services?

而且我想只要你看到的份額是美國任何其他流媒體服務的倍數，我們是否應該考慮你相對於有線電視的價格，就像我們考慮你的跑道一樣——而不是你會得到一夜之間，但是當我們想到你的跑道時，與其他流媒體服務相比，這真的是我們應該考慮的比較嗎？

We don't have an a priori sort of price target in any given country that we're tracking to. Mostly, we're listening to our members and sort of iteratively doing this walk where the metrics that we see in terms of engagement and churn and acquisition and those kind of things are really our signal that we've done a good job at sort of creating this more value and it's the right time to ask for a little bit more to keep that going.

在我們跟踪的任何給定國家，我們都沒有先驗的價格目標。大多數情況下，我們正在聽取我們的成員的意見，並反復進行這種步行，我們在參與度、流失率和獲取率等方面看到的指標確實是我們在某種方面做得很好的信號創造更多的價值，現在是時候要求更多的東西來保持這種狀態了。

So to the previous comments around competition and things like that, we don't think that it's immediately replaceable or substitutable good, let's say, right? And so if we have incredible stories, movies that you can only see on Netflix, great TV shows, unscripted, now games coming, then that really -- the value equation for any given member or member-to-be in a market is just are they getting good value for what they're paying. As long as we do a good job there, we feel like we're fulfilling that need.

所以對於之前關於競爭之類的評論，我們不認為它可以立即被替換或替代好，比方說，對吧？因此，如果我們有令人難以置信的故事、只能在 Netflix 上看到的電影、精彩的電視節目、無劇本、現在遊戲即將到來，那麼真的——市場上任何給定成員或準成員的價值方程就是他們付出的代價是否物有所值。只要我們在那裡做得好，我們就會覺得我們正在滿足這一需求。

Great. You also made a price change in India in the other direction. Maybe just help us understand what you're trying to achieve with that price change.

偉大的。您還向另一個方向改變了印度的價格。也許只是幫助我們了解您想要通過價格變化實現的目標。

Yes. I think it follows a whole set of activities that we've been doing in India over the years that we've been operating there and learning more about Indian consumers' tastes, et cetera. And that's broadening the offering in the service across many, many different dimensions. So it's obviously at the core is the content and the programming and seeking to expand that and provide an increased variety and range of programming that appeals and attractive to more people in India while we're thinking about go-to-market and the partnerships that we have and making sure that we're available with those partners at that place where more people in India will find us, and it gets to payments and many, many, many things.

是的。我認為它遵循了我們多年來在印度開展的一系列活動，我們在那裡開展業務並更多地了解印度消費者的口味等等。這擴大了服務產品的範圍，涵蓋了許多不同的維度。因此，核心顯然是內容和節目，並尋求擴展它並提供更多種類和範圍的節目，以吸引和吸引更多印度人，同時我們正在考慮進入市場和合作夥伴關係我們擁有並確保我們可以在印度有更多人找到我們的地方與這些合作夥伴聯繫，並且可以進行付款和很多很多很多事情。

And when we looked at it and we saw sort of the sum total of all those activities, we felt it was the right time to decrease our prices there, to increase accessibility to all of that sort of -- those incremental value or features that we've been trying to deliver to the market to more Indian consumers. And we also wanted to do it not just like we did with mobile, which is a good lower entry price point, but do it across the range of plans that we had under the theory that some of those features like the ability to watch on TV with a basic plan really unlocks more value in the service and therefore would create more retention, more attractiveness to those plan types for those Indian consumers.

當我們查看它並看到所有這些活動的總和時，我們認為現在是降低價格的正確時機，以增加對所有這些的可及性——那些我們的增量價值或功能'一直試圖向市場提供更多的印度消費者。而且我們還想做到這一點，不僅僅是像我們在移動設備上所做的那樣，這是一個很好的較低入門價格點，而是在我們根據理論認為其中一些功能比如在電視上觀看的能力的計劃範圍內進行。使用基本計劃確實可以釋放更多服務價值，因此會為印度消費者創造更多保留，對這些計劃類型更具吸引力。

And again, we're doing this through the lens of what's the long-term sort of revenue maximization, our best guess at that exchange. And so in this case, we're -- basically anticipated that while we decrease ARM, average revenue per member, as a result of the price decreases, we're going to make it up in more subscriber adds.

再一次，我們是從長期收入最大化的角度來做這件事的，這是我們對該交易所的最佳猜測。因此，在這種情況下，我們 - 基本上預計，雖然我們減少了 ARM，但由於價格下降，每個成員的平均收入，我們將通過更多的訂閱者增加來彌補。

And I would say it's still very early in looking at India. And some of these effects, like retention, it takes a couple of months to get a very clean read on it. But the early data that we are seeing very much supports a positive read on that lens of revenue maximization through these changes.

我想說，現在看印度還為時過早。其中一些影響，比如留存率，需要幾個月的時間才能非常清楚地閱讀。但我們看到的早期數據非常支持通過這些變化來實現收入最大化的正面解讀。

And Nidhi, as you well know, but not all viewers might, what's unique about India is cable is about $3 per month per household. So radically different pricing than the rest of the world, which does impact consumer expectations.

Nidhi，正如你所知道的，但並非所有觀眾都知道，印度的獨特之處在於每戶每月大約 3 美元的有線電視費用。定價與世界其他地區截然不同，這確實影響了消費者的預期。

Right. Right. If this approach doesn't give you the desired result, and it sounds like it is so far, but if fast forward 6 months or 12 months from now, it isn't giving you the desired result, would you consider sort of rightsizing your content spend in India or maybe consider an ad-supported model? I guess in other words, how hard do you want to push for India? And are there examples of success you see either in the media industry or outside of it that give you the confidence that you can make money in this market long term?

對。對。如果這種方法沒有給你想要的結果，而且聽起來到目前為止，但如果快進 6 個月或 12 個月後，它沒有給你想要的結果，你會考慮調整你的大小嗎？在印度進行內容消費還是考慮採用廣告支持的模式？我想換句話說，你想為印度爭取多大力氣？您是否在媒體行業或媒體行業之外看到了成功的例子，讓您有信心在這個市場上長期賺錢？

I think it would be a long time before we adjust it materially because in our experience in Brazil, it was brutal for the first couple of years. We thought we'd never break even. I know we've got this great business.

我認為我們需要很長時間才能對其進行實質性調整，因為根據我們在巴西的經驗，前幾年的情況非常殘酷。我們以為我們永遠不會收支平衡。我知道我們有這麼好的生意。

And then, Greg, why don't you talk about the experience in Japan?

然後，格雷格，你為什麼不談談在日本的經歷？

Yes. I would use the word brutal in my -- back to that. And obviously, it's a different country, different characteristics in terms of affluence and things like that. But it took us quite a while to unlock all of these components, product market fit, get the right content, all these different pieces. But then once you get that sort of flywheel spinning, it's an incredible market for us and a source of tremendous growth in membership and revenue in the region.

是的。我會在我的 - 回到那個時使用殘酷這個詞。顯然，這是一個不同的國家，在富裕程度等方面的不同特徵。但我們花了很長時間才解鎖所有這些組件、產品市場契合度、獲得正確的內容，以及所有這些不同的部分。但是，一旦你得到那種飛輪旋轉，這對我們來說是一個令人難以置信的市場，也是該地區會員和收入巨大增長的源泉。

So I think we're quite bullish that India isn't fundamentally different in some way that we can't figure out how to tailor our service offering to be attractive to Indian consumers who love entertainment. We know that for sure. And so that, I think, gives us a lot of optimism just to continue to work away at it.

所以我認為我們非常看好印度在某些方面並沒有根本不同，我們無法弄清楚如何定制我們的服務以吸引喜歡娛樂的印度消費者。我們肯定知道這一點。因此，我認為，這給了我們很多樂觀，只是為了繼續努力。

I would just add -- sorry, go ahead, Reed.

我只想補充——對不起，繼續吧，里德。

The great news is in every single other major market, we've got the flywheel spinning. The thing that frustrates us is why haven't we been as successful in India. But we're definitely leaning in there.

好消息是在每一個其他主要市場，我們的飛輪都在旋轉。令我們沮喪的是，為什麼我們在印度沒有那麼成功。但我們肯定傾向於那裡。

And there wasn't an easy one in the bunch.

這群人中沒有一個容易的。

Well, that's kind of what I was going to say, like what Ted touched on, like for as much as we have what we believe is a terrific business and a terrific business model that scales so well with content that can be created anywhere and travel everywhere. And you see that with our more than 222 basic -- million paying members around the world. It's also super hard. It's hard in every country. And every country is on different adoption curve.

嗯，這就是我要說的，就像泰德談到的那樣，就像我們擁有的一樣，我們認為這是一個了不起的業務和一個了不起的商業模式，可以很好地擴展可以在任何地方創建和旅行的內容到處。你會看到我們在全球擁有超過 222 名基本會員——百萬付費會員。這也超級難。每個國家都很難。每個國家都處於不同的採用曲線上。

And we talk about product market fit, but it's -- even though everyone loves film and TV and even games, it is very specific. Entertainment is still fundamentally pretty local around the world. So it's global and local, and we need to figure that out. So that is actually a good thing about our business, is that it scales well but it's also super difficult. Otherwise, it'd be really easy for everybody to replicate it.

我們談論產品市場契合度，但它是 - 儘管每個人都喜歡電影和電視甚至遊戲，但它非常具體。從根本上說，娛樂在世界各地仍然相當本地化。所以它是全球性和本地性的，我們需要弄清楚這一點。所以這對我們的業務來說實際上是一件好事，它可以很好地擴展，但也非常困難。否則，每個人都非常容易複製它。

The team going into producing original content in India being pretty -- almost impossible when we first started looking at it. And then this quarter alone, we've got original content coming out from Turkey. We have production in Russia, from Argentina, from Mexico, from Sweden, from Denmark. So we've got original content from all corners of the world with 20 originals coming out of Korea this year.

在印度製作原創內容的團隊非常漂亮——當我們第一次開始研究它時，這幾乎是不可能的。僅在本季度，我們就有來自土耳其的原創內容。我們在俄羅斯、阿根廷、墨西哥、瑞典、丹麥都有生產。所以我們有來自世界各地的原創內容，今年有 20 部原創作品來自韓國。

So the idea that they invested in this early and have built up on it and that it really is going to be something that is going to start to -- we think it will start flowering in India for all the same reasons, a good product market fit, content people love, value that fits through their life and product they can't live without.

因此，他們很早就投資並在此基礎上建立起來的想法，它確實會開始——我們認為出於同樣的原因，它會在印度開始開花，一個好的產品市場適合、滿足人們喜愛、適合他們生活的價值和他們離不開的產品。

And I'll triple down on that point as well, Ted, because we're -- I mean, we're still learning even now as we have these incredible stories from all these places around the world, how to bring them to that global audience in increasingly effective ways. And it's simple things, obviously, like subtitling and dubbing. And we've subtitled 7 million run time minutes in '21 and dubbed 5 million run time minutes. But at that scale, we're learning actually how to do that better and how to make that localization more compelling to our members.

特德，我也會在這一點上加倍努力，因為我們 - 我的意思是，我們現在仍在學習，因為我們擁有來自世界各地的這些令人難以置信的故事，如何將它們帶到那裡全球觀眾以越來越有效的方式。很明顯，這很簡單，比如字幕和配音。我們在 21 年為 700 萬分鐘運行時間添加了字幕，並配音為 500 萬運行時間分鐘。但在這種規模下，我們實際上正在學習如何做得更好，以及如何使本地化對我們的會員更具吸引力。

But it also gets to even like things that you wouldn't even anticipate like just how you present these titles in an emotionally, evocative way. And we describe a story maybe as nostalgic or eerie and that means something to us. But you can't just literally translate that. You have to find out in every culture and language around the world what is that similarly emotionally evocative descriptor that is going to communicate really easily and quickly what a story means. There's just -- there's so much work and incredibly fascinating things that we're learning about how to do that every day.

但它也會喜歡你甚至不會預料到的事情，比如你如何以一種情感上、令人回味的方式呈現這些標題。我們將一個故事描述為懷舊或怪誕，這對我們來說意義重大。但你不能隻字面翻譯。你必須在世界各地的每種文化和語言中找出什麼是類似的情感喚起描述符，它將真正輕鬆快速地傳達一個故事的含義。只是 - 我們每天都在學習如何做到這一點，有太多的工作和令人難以置信的迷人的事情。

And in many of those places where we built that out, there was 0 infrastructure for subtitling and dubbing.

在我們構建它的許多地方，字幕和配音的基礎設施為 0。

Well, speaking of content that travels well, South Korea, as you mentioned, Ted, has been a really bright spot for you. And as you said, you're launching 20 -- over 20 new shows there this year. What are sort of the unique factors that drove your success in South Korea? And more importantly, what do you think the adoption curve can look like here relative to maybe what you've seen in other markets?

好吧，說到傳播良好的內容，韓國，正如你提到的，泰德，對你來說是一個真正的亮點。正如你所說，你今年將在那裡推出 20 場——超過 20 場新節目。推動您在韓國取得成功的獨特因素是什麼？更重要的是，相對於您在其他市場看到的情況，您認為這裡的採用曲線會是什麼樣子？

I'd say first and foremost, we've developed over the years an incredible team in Korea and South Korea that has worked with the talent community, that recognized the storytelling, that really works in Korea, that didn't try to make it different so it would travel but really try to find all the things about Korean cinema and Korean drama and build them up in a way that people could see kind of new levels of production value.

我首先要說的是，多年來，我們在韓國和韓國建立了一支令人難以置信的團隊，與人才社區合作，認可講故事，在韓國確實有效，但並未嘗試成功不同，所以它會旅行，但真的試圖找到關於韓國電影和韓劇的所有東西，並以人們可以看到一種新的生產價值水平的方式建立它們。

But it's not like we had to go in and teach anyone in South Korea how to make great content. It's an incredible market for that. And there's always been curiosity around the world. The Kdrama market has always had little pockets of success all over the place. But I think the ease of delivery that we've offered has kind of pushed that into the mainstream.

但這並不是說我們必須進去教韓國的任何人如何製作出色的內容。這是一個令人難以置信的市場。世界各地總是充滿好奇。 Kdrama 市場在各地都取得了一些成功。但我認為我們提供的交付便利性已經將其推向了主流。

Yes, there was kind of a turning point with Parasite and Bong Joon-ho's Oscar last year that kind of opened up people's minds to it. But we saw that even way before that with Okja, working with Director Bong, that there was this incredible storytelling culture that we could tap into and that people would love Kdramas and watch them all over the world. It just wasn't that easy to find them. And in Netflix, we've been able to kind of put together the great storytelling and great delivery and a great value proposition that has grown the watching of Korean content in the U.S., the numbers I would have never believed 3 years ago. So 100% growth in 2021 over 2020.

是的，去年《寄生蟲》和奉俊昊的奧斯卡有一個轉折點，讓人們對它敞開心扉。但我們甚至在那之前就看到了 Okja，與奉導演合作，我們可以利用這種令人難以置信的講故事文化，人們會喜歡 Kdramas 並在世界各地觀看它們。找到它們並不容易。在 Netflix 中，我們已經能夠將精彩的故事講述和出色的交付以及巨大的價值主張結合在一起，從而增加了在美國觀看韓國內容的人數，這是我 3 年前從未相信過的數字。因此，2021 年比 2020 年增長 100%。

Will we get a second season of Squid Game?

我們會得到魷魚游戲的第二季嗎？

Absolutely. The Squid Game universe has just begun.

絕對地。魷魚游戲世界才剛剛開始。

Great. Looking forward to that. Shifting gears to Latin America. This region feels like it's maturing at a lower level of penetration than you've seen in the U.S. Is that due to competition, affordability? Account sharing Or something else? Or maybe you disagree with the statement that it's actually maturing. But help us understand if there's anything you can do differently to sort of drive penetration levels there higher.

偉大的。期待著。轉向拉丁美洲。這個地區感覺它的成熟度比你在美國看到的要低。這是因為競爭，負擔能力嗎？帳戶共享還是其他？或者，您可能不同意它實際上正在成熟的說法。但是請幫助我們了解您是否可以採取不同的措施來提高那裡的滲透率。

Well, first, I just wouldn't necessarily read through that it's maturing faster, Nidhi. I mean again, I just don't want to understate the impact of what we've been going through for the last 2 years. And Latin America, in particular, has been more strained. It has less kind of government funding and subsidization relative to many parts of the world to kind of fuel their economy. On top of that, we also continue to increase prices in that market last year across some big countries for us, Mexico, Brazil, Argentina.

嗯，首先，我不一定會讀到它成熟得更快，Nidhi。我的意思是，我只是不想低估過去兩年我們所經歷的影響。尤其是拉丁美洲，情況更加緊張。與世界上許多地方相比，它的政府資金和補貼較少，以推動其經濟發展。最重要的是，去年我們還在墨西哥、巴西、阿根廷等一些大國繼續提高該市場的價格。

So between macroeconomic factors and general strain, business is still growing there. We grew by about 2.5 million members last year, so under the kind of pre-COVID growth rates but still growing. And it is a market where pay TV is healthy. Folks love film and TV. And so I think there's a long runway of growth there. It's also been a great market for us for Spanish language content that we're creating for the rest of the world.

因此，在宏觀經濟因素和總體壓力之間，那裡的業務仍在增長。去年我們增加了大約 250 萬會員，因此在 COVID 之前的增長率下，但仍在增長。這是一個付費電視健康的市場。人們喜歡電影和電視。所以我認為那裡有很長的增長之路。對於我們為世界其他地區創建的西班牙語內容而言，這也是一個巨大的市場。

So we don't see, and the others can chime in, need to change strategy. We continue -- like we talked about with India, we're getting better everywhere, every year. We're getting better with our local content in Brazil and Mexico and so forth. So there's a lot more to come, but it's not a fundamental change in strategy.

所以我們看不到，其他人可以插話，需要改變策略。我們繼續——就像我們在印度談到的那樣，我們每年都在進步。我們在巴西和墨西哥等地的本地內容越來越好。所以還有很多事情要做，但這並不是戰略上的根本變化。

Great. That makes sense. Maybe just stepping back, you've talked about 800 million to 900 million homes globally outside of China. That's sort of your TAM. You're, call it, 25% penetrated into that. As you're seeing how various markets are playing out in terms of penetration levels, some higher, some lower, obviously, they're all still growing. Has your thought process changed at all on how many of these 800 million to 900 million homes you can have ultimately or sort of the time frame to get there, whether it's higher than you expected or lower than you expected? And how might you actually evolve your content strategy or your pricing strategy to get the next 200 million subscribers?

偉大的。這就說得通了。也許只是退後一步，你已經談到中國以外的全球有 8 億到 9 億戶家庭。這就是你的TAM。你，稱之為，25% 的滲透率。正如您所看到的，各個市場在滲透水平方面的表現如何，有些更高，有些較低，顯然，它們都在增長。你的思維過程有沒有改變，在這 8 億到 9 億套房屋中，你最終可以擁有多少，或者到達那裡的時間框架，是高於你的預期還是低於你的預期？您如何真正發展您的內容策略或定價策略以吸引下一個 2 億訂閱者？

Yes. I'd say, Nidhi, we -- on that pay TV comparison, we look at it. We're, in the U.S., at about 2/3 of the pay TV high-water mark. And so the back third is definitely going to be harder than the first 2/3 in terms of appealing more unscripted, more superhero, and we're working on all of that. Because we don't have sports and news, you might say, well, if we get to 80% or something of pay TV, that's a good accomplishment. But also, streaming TV is such a better experience than the old linear TV. In some ways, we think to ourselves we should be higher than pay TV, a combination of lower pricing and better experience.

是的。我想說，Nidhi，我們 - 在付費電視比較中，我們看看它。在美國，我們大約是付費電視高水位線的 2/3。因此，在吸引更多無劇本、更多超級英雄方面，後三分之一肯定比前 2/3 更難，我們正在努力解決所有這些問題。因為我們沒有體育和新聞，你可能會說，好吧，如果我們達到 80% 或類似的付費電視，那是一個很好的成就。而且，流媒體電視比舊的線性電視有更好的體驗。在某些方面，我們認為我們應該比付費電視更高，結合了更低的價格和更好的體驗。

So definitely frustrating for us, the current slower growth. That's why it could well be kind of just COVID effects where it could be as you're pushing on smaller market than we thought. But I'm not sure why. So we try to be really rigorous of thinking about the long term. It's possible that we'll get there, but slower than we thought, smart TV adoption, complexity, those kinds of things. But we're still focused on the original thesis of if we become incredibly compelling, everyone's going to want to be a Netflix member.

因此，目前的增長放緩對我們來說絕對令人沮喪。這就是為什麼它很可能只是 COVID 影響，因為你正在推動比我們想像的更小的市場。但我不確定為什麼。因此，我們嘗試非常嚴格地考慮長期。我們可能會到達那裡，但比我們想像的要慢，智能電視的採用、複雜性等等。但我們仍然專注於最初的論點，即如果我們變得非常引人注目，每個人都會想成為 Netflix 會員。

And I know it feels like we've been saying it for a long time, but it's early days. It really is. And I think about the evolving value proposition and how it's still maturing. The idea that big-ticket movies that people really care about premiering and being part of your Netflix subscription is actually taking the value proposition to a new level than it was just a couple of years ago.

我知道感覺我們已經說了很長時間了，但現在還為時過早。確實如此。我考慮了不斷發展的價值主張以及它如何仍在成熟。人們真正關心首映並成為您的 Netflix 訂閱的一部分的大票電影的想法實際上將價值主張提升到了一個新的水平，而不是幾年前。

So I do think, like I said, it's dynamic market for sure. It may not be as steady as people can think about it in terms of we're going to add X number every month, every quarter, every week. But it's going to -- but there's no question that that's the direction the business is going in.

所以我確實認為，就像我說的那樣，這肯定是充滿活力的市場。它可能不像人們想像的那麼穩定，因為我們每個月、每個季度、每週都會增加 X 個數字。但它會——但毫無疑問，這就是業務的發展方向。

Yes. Yes. And Ted, that's a good segue to where I wanted to go next. You had an incredible lineup of films in Q4 with a lot of viewing. I'm curious, what did having a strong film slate in the quarter do for you relative to periods where you didn't have that? Did you see more aggregate engagement, lower churn, more conversation? Just what is sort of unique about delighting your customers with a film versus a show in terms of kind of the benefits that you see?

是的。是的。泰德，這是我下一步想去的地方的一個很好的選擇。在第四季度，你們的電影陣容令人難以置信，觀看次數很多。我很好奇，相對於你沒有的時期，在本季度擁有強大的電影片對你有什麼影響？您是否看到更多的總體參與度、更低的流失率、更多的對話？就您所看到的好處而言，用電影和節目取悅客戶有什麼獨特之處？

Yes. There's a big theory, which is that people differently value movies because they always have to pay for it. You had to buy a movie ticket. You have to buy a pay-per-view transaction or DVD. There's always kind of a transactional and a pretty big one for some people to see a big movie premier in your home.

是的。有一個很大的理論，那就是人們對電影的評價不同，因為他們總是要為此付費。你必須買電影票。您必須購買按次付費的交易或 DVD。對於某些人來說，在家中觀看大型電影首映式總是有一種交易性和相當大的意義。

And so there was this kind of temporary effect that some other folks were doing -- this is our -- it's in our permanent model to premier our big movies on the service. And I think people look -- even if you really watch mostly television, you have a movie night, and we can service you on movie night. I think that's a very big important value proposition that we have that's different from everybody else.

所以有一些其他人正在做的這種暫時的影響——這是我們的——在我們的永久模式中，在服務上首映我們的大電影。而且我認為人們看起來——即使你真的主要看電視，你也有一個電影之夜，我們可以在電影之夜為你服務。我認為這是一個非常重要的價值主張，我們擁有不同於其他人的價值主張。

And these are the movies that people really love and care about. And you start seeing them at the scale of Don't Look Up and Red Notice in Q4, and it gets you super excited as to what could be next when -- what's coming next. And for that, we have things like The Adam Project coming up with Ryan Reynolds and Shawn Levy directed coming up in Q1. It's a phenomenal movie for the whole family. With a big action movie from the Russo brothers like Gray Man with Ryan Gosling, Knives Out 2, Enola Holmes 2.

而這些才是人們真正喜愛和關心的電影。你開始在第四季度以“請勿抬頭”和“紅色通告”的規模看到它們，這讓你對接下來可能發生的事情感到非常興奮——接下來會發生什麼。為此，我們在第一季度推出了由 Ryan Reynolds 和 Shawn Levy 執導的《亞當計劃》。這是一部適合全家人觀看的非凡電影。來自 Russo 兄弟的大型動作片，例如 Grey Man with Ryan Gosling、Knives Out 2、Enola Holmes 2。

So with this movie lineup that would be -- that any one studio would go for any one season, we've got new movies every week on Netflix, and they're big movies that people care about. And we think once the expectation is set and we keep delivering on it, people will react to that, too.

所以有了這個電影陣容——任何一個工作室都會去任何一個季節，我們每週都會在 Netflix 上發布新電影，它們是人們關心的大電影。我們認為，一旦設定了期望並且我們繼續實現它，人們也會對此做出反應。

Great.

偉大的。

And Nidhi, I'd just add that at the core, what our members love and what they tell us they love is a great variety of high-quality content, and that means across TV film and hopefully games over time in a much broader way. So having a great film offering is, for us, a key part of that equation. And so I think we're just starting to fulfill more and more of that, our member kind of needs and wants and satisfaction. That's what we're seeing. But it's not like it's just so differential than something else as part of that overall quality and variety of entertainment offering.

Nidhi，我只想補充一點，我們的成員喜歡以及他們告訴我們他們喜歡的是各種各樣的高質量內容，這意味著隨著時間的推移以更廣泛的方式跨越電視電影和希望遊戲.因此，對我們而言，提供出色的電影是該等式的關鍵部分。所以我認為我們剛剛開始滿足越來越多的需求，滿足我們會員的需求和願望。這就是我們所看到的。但作為整體質量和娛樂產品多樣性的一部分，它並不像其他東西那麼與眾不同。

I also think it differentially serves people watching together. It's much easier to watch a movie together than to make sure you're all tracking on the same episode every week all over the -- if you travel or whatever you do. So that kind of together experience we can deliver on every weekend on Netflix is pretty great.

我也認為它為人們一起觀看提供了不同的服務。一起看電影比確保你們每週都在跟踪同一集要容易得多——如果你旅行或做什麼。因此，我們可以在每個週末在 Netflix 上提供的那種一起體驗非常棒。

And I think about even just in the upcoming quarter alone, Spence talked about variety, everyone has a very different taste. So any one movie is only going to serve a segment of the audience. Now you get big, exciting thing like Don't Look Up and Red Notice, you can get to a big chunk of the base, but you're still only getting about 60%. So to do that, to serve everyone, you have to have a big variety of output.

而且我想即使只是在即將到來的季度，Spence 談到了多樣性，每個人的品味都非常不同。因此，任何一部電影都只會為一部分觀眾服務。現在你得到了像 Don't Look Up 和 Red Notice 這樣的大而令人興奮的東西，你可以到達基地的很大一部分，但你仍然只能得到大約 60%。所以要做到這一點，為每個人服務，你必須有各種各樣的輸出。

So it does seem like a lot of volume, but it's not all for you. So in Q1 alone, we have The Adam Project I mentioned. We have Munich from Germany; Texas Chainsaw Massacre, which is kind of a reinvention of that franchise; Tall Girl 2, which is a sequel to one of our big YA rom-coms; Home Team with Kevin James. Judd Apatow has got the movie The Bubble. That's all in Q1 and plus original local language films from all over the world as well. So to meet the kind of variety of taste, we're able to really step up and deliver no matter what that taste is.

所以它看起來確實很大，但它並不適合你。所以僅在第一季度，我們就有我提到的亞當項目。我們有來自德國的慕尼黑；德州電鋸大屠殺，這是對特許經營權的一種改造；高個女孩 2，這是我們的大型 YA rom-com 之一的續集；與凱文詹姆斯的主隊。賈德·阿帕托（Judd Apatow）獲得了電影 The Bubble。這就是第一季度的全部內容，以及來自世界各地的原創本地語言電影。因此，為了滿足各種口味，我們能夠真正加強並提供任何口味。

Yes. Yes, that makes sense. Reed, you talked on the Q3 call about sort of, over time, building out the whole experience of games, consumer products, live events, et cetera, around some of your IP. And it obviously starts with great IP and great storytelling. But what else do you have to get right operationally and strategically to really build a franchise? And do you feel like you have the pieces in place now?

是的。是的，這是有道理的。 Reed，你在第三季度的電話會議上談到，隨著時間的推移，圍繞你的一些 IP 構建遊戲、消費產品、現場活動等的整體體驗。顯然，它始於出色的 IP 和出色的故事講述。但是，要真正建立特許經營權，您還需要在運營和戰略上做出哪些正確的決定？你覺得你現在已經準備好了嗎？

We're building those muscles steadily with our consumer products, both like the Squid Game tracksuits, and then we're making a big push on experiences that are mobile and portable and people, if we can set them up quickly and developing that muscle. Obviously, the gaming muscle, we're very young on and building. So if you think of a world in a few years where those are strong muscles and then you think of the next Bridgerton or Squid Game coming through, that's what we hope to be able to really pull those pieces together.

我們正在通過我們的消費產品（比如 Squid Game 運動服）穩步地鍛煉這些肌肉，然後我們將大力推動移動、便攜和人的體驗，如果我們能夠快速設置它們並發展肌肉。顯然，遊戲肌肉，我們還很年輕，正在建設中。因此，如果您想到幾年後的世界，這些都是強壯的肌肉，然後您想到下一個布里奇頓或魷魚游戲即將到來，這就是我們希望能夠真正將這些碎片拼湊在一起的東西。

And people talk about franchise like it's 0 or 1. But of course, there's a complete continuum that will add value in the short term to our various titles. And we're doing that already through the consumer products world and having people feel a bigger connection to those big franchises. So it's already working, but it's probably, I don't know, 20% of what it will be in a couple of years in terms of the auxiliary boost beyond just the title.

人們談論特許經營權就像它是 0 或 1。但當然，有一個完整的連續體將在短期內為我們的各種遊戲增加價值。我們已經通過消費品世界做到了這一點，讓人們感受到與那些大型特許經營權的更大聯繫。所以它已經開始工作了，但我不知道，它可能是幾年後除了標題之外的輔助提升方面的 20%。

Yes. And I'd say on that continuum, Reed, you've got Stranger Things, which I'd say is as valuable a franchise as exist today in entertainment around the world. We certainly have things that are in their early stages of becoming a franchise like Bridgerton, which we launched our second season of this, our second most popular show ever in Q1. And we're also -- this year, you'll see an origin story on Queen Charlotte and this incredible Bridgerton live experiences around the country and around the world that fans will flock to and flood their social media feeds with. And there's consumer products that go along with that as well.

是的。而且我想說的是，里德，你有《怪奇物語》，我想說它是一個有價值的特許經營權，就像當今世界各地的娛樂業一樣。我們當然有一些東西正處於成為特許經營權的早期階段，比如布里奇頓，我們推出了第二季，這是我們在第一季度有史以來第二受歡迎的節目。而且我們還 - 今年，你會看到關於夏洛特女王的起源故事，以及全國和世界各地令人難以置信的布里奇頓現場體驗，粉絲們將蜂擁而至，並在他們的社交媒體上充斥著它們。隨之而來的還有消費產品。

So it's all those kind of makings of a franchise instead of trying to tapping into one that's been building for 50 years. Can you build it from whole cloth? And I think Stranger Things is a proof point that you can.

因此，這就是特許經營的所有這些特質，而不是試圖利用已經建立了 50 年的特許經營。你能用整塊布做它嗎？我認為 Stranger Things 是一個證明點，你可以。

We touched on gaming a little bit. It's very exciting to see some worldwide launches during the quarter. Greg, I know it's early days, but what has sort of the reception and engagement been from the subscriber base? And what have your learnings been as well?

我們稍微談到了遊戲。在本季度看到一些全球發布非常令人興奮。格雷格，我知道現在還為時尚早，但訂戶群的接待和參與度如何？你也學到了什麼？

Yes. As you say, it's tremendously exciting to get to this point because we basically have been building the plumbing and all the technical infrastructure just to get to the point where we can do this, which is consistently launch games globally to all of our members. And it's great to do that.

是的。正如您所說，達到這一點非常令人興奮，因為我們基本上一直在構建管道和所有技術基礎設施，只是為了達到我們可以做到這一點的地步，即始終如一地在全球範圍內向我們所有成員推出遊戲。這樣做很棒。

And now as you point out, we're now really getting to learn from all those games what are the discovery patterns, what are the engagement patterns, how are they performing, what do our members want from games on the service. And it's still very early days. But generally, what we're seeing is not surprisingly, we have a growing number of monthly active users, daily active users on these games. And so we're generally seeing good growth in that regard.

現在正如你所指出的，我們現在真的要從所有這些遊戲中學習什麼是發現模式，什麼是參與模式，它們的表現如何，我們的會員希望從服務上的遊戲中得到什麼。現在還為時尚早。但總的來說，我們所看到的並不奇怪，我們擁有越來越多的月活躍用戶，這些遊戲的日活躍用戶。因此，我們通常在這方面看到良好的增長。

But really, the -- as we're doing this, we've been building in parallel what I'm super excited about it, which is the sort of internal development capacity, our own game studio. We've been hiring some incredible talent that brings a set of experience to this process. We've done an acquisition in this space. And that now allows us to incrementally gradually, over a period of time, get to that sort of the value that you and Reed were talking about where we get to deliver now interactive experiences that are tied to the IP that we're excited about, that are timed with that. And that, I think, is really when you're going to see a next level of unlock around the value we can deliver to members.

但實際上，在我們這樣做的同時，我們一直在同時構建我對此感到非常興奮的東西，這是一種內部開發能力，我們自己的遊戲工作室。我們一直在招聘一些令人難以置信的人才，他們為這個過程帶來了一系列經驗。我們已經在這個領域進行了收購。現在，這使我們能夠在一段時間內逐步逐步達到您和 Reed 談論的那種價值，我們可以在哪裡提供與我們興奮的 IP 相關聯的互動體驗，那是定時的。而且，我認為，這真的是您將看到圍繞我們可以為會員提供的價值的下一個解鎖級別。

Given that gamers tend to sort of consolidate their time around a smaller number of titles compared to video where we tend to consume a wider variety of content, does it -- would it be more efficient to sort of buy your way into some well-known titles to sort of anchor the product?

鑑於與我們傾向於消費更廣泛內容的視頻相比，遊戲玩家傾向於將他們的時間集中在較少數量的標題上，是嗎 - 以某種方式購買一些知名品牌會更有效嗎？標題來錨定產品？

Just the last couple of weeks, we've obviously seen a couple of major companies make big acquisitions or at least announce big acquisitions because this is obviously something that's difficult to build organically. I'm just curious what your reaction to that is. And why isn't Netflix participating in big acquisitions given your aspirations in gaming?

就在過去幾週，我們顯然已經看到幾家大公司進行了大規模收購，或者至少宣布了大規模收購，因為這顯然很難有機地建立起來。我只是好奇你對此有何反應。鑑於您對遊戲的抱負，為什麼 Netflix 不參與大型收購？

Well, it's -- I mean it was exciting to see the activity in the space. And I think to some degree, it's an endorsement of the core thesis that we have around subscription being a great model to connect consumers around the world with games and game experiences. And we're open to licensing, accessing large game IP that people will recognize. And I think you'll see some of that happen over the year to come.

嗯，這是 - 我的意思是看到太空中的活動令人興奮。我認為在某種程度上，這是對我們圍繞訂閱的核心論點的認可，它是一種將世界各地的消費者與遊戲和遊戲體驗聯繫起來的絕佳模式。我們對許可持開放態度，訪問人們會認可的大型遊戲 IP。我想你會在未來一年看到其中的一些發生。

But we also see -- back to Ted's like building out a whole cloth and the ability to sort of take the franchises or the big titles, let's call it, that we are excited about and actually develop interactive experiences that are connected to those. We see a huge, long-term multiyear opportunity in that, too.

但我們也看到 - 回到 Ted 就像打造一整塊布以及獲得特許經營權或大頭銜的能力，讓我們稱之為，我們對此感到興奮並實際上開發了與之相關的互動體驗。我們也看到了一個巨大的、長期的多年機會。

So we'll -- we're very open. We're going to be experimental and try a bunch of things. But I would say the eyes that we have on the long-term prize really center more around our ability to create properties that are connected to the universes, the characters, the stories that we're building in other places and sort of magnify that value for the fans of those stories.

所以我們會 - 我們非常開放。我們將進行實驗並嘗試很多事情。但我想說，我們對長期獎品的關注更多地集中在我們創造與宇宙、角色、我們在其他地方構建的故事相關的屬性的能力上，並在某種程度上放大了這種價值對於那些故事的粉絲。

Nidhi, we have time for 2 more questions.

Nidhi，我們還有時間再回答 2 個問題。

Okay. Maybe Reed, just a bigger picture question for you. And Spencer, I might have more than a couple of questions. But you have this global subscription product that's inside sort of hundreds of millions of households around the world. And you really nailed 2D lean-back content, but there is this whole world of interactive or semi-interactive content, whether it's gaming or fitness or education. And at the more extreme end, there's VR content, and now everyone is talking about the metaverse. You've obviously already gotten going on gaming. But as you look at sort of this broad spectrum of content, how much of it do you want to sort of wrap your subscription around thinking about the long term?

好的。也許里德，對你來說只是一個更大的問題。斯賓塞，我可能有幾個問題。但是你有這個全球訂閱產品，它在世界各地數以億計的家庭中。而且您確實掌握了 2D 靠背內容，但無論是遊戲、健身還是教育，互動或半互動內容的整個世界都存在。在更極端的一端，有 VR 內容，現在每個人都在談論元宇宙。你顯然已經開始玩遊戲了。但是，當您查看如此廣泛的內容時，您希望將訂閱中的多少內容圍繞著長期考慮？

When you say how much do you want to, that would be a high number. But we have to be differentially great at it. There's no point of just being in it. That's very dilutive of the whole proposition. And so it took us several years to get great at English original series. And you saw in the letter on the Google Search trends how well we did there.

當你說你想要多少時，那將是一個很高的數字。但我們必須在這方面做得非常出色。只是在裡面是沒有意義的。這對整個提議非常稀釋。所以我們花了幾年時間才在英文原版系列中表現出色。您在關於 Google 搜索趨勢的信中看到了我們在這方面的表現。

We built with a lot of effort a really strong film franchise, and that's -- Ted calls it just the third inning. It's like we're really just getting going to what we think we're going to be able to do there. Of course, we've got all the international content. We've got unscripted, documentaries. And then gaming, which initially we're focused on the mobile gaming, is a big one.

我們付出了很多努力，打造了一部非常強大的電影專營權，那就是——泰德稱這只是第三局。就好像我們真的只是在做我們認為我們可以在那裡做的事情。當然，我們擁有所有國際內容。我們有無劇本的紀錄片。然後遊戲，最初我們專注於移動遊戲，是一個大遊戲。

So I would say when mobile gaming is world-leading and we're some of the best producers and like where we are at film today, 2 of the top 10 for our gaming, then you should ask, okay, what's next. Because we're definitely crawl, walk, run and like let's nail the thing and not just be in it for the sake of being in it or for a press release, but we got to please our members by having the absolute best in the category. And Ted and Greg have been doing a terrific job on that, and we'll just continue to work on that. So queue it up for that. When we're winning in games, then we'll take the question.

所以我想說，當移動遊戲處於世界領先地位並且我們是一些最好的製作人，就像我們今天在電影中所處的位置一樣，我們遊戲的前 10 名中有 2 個，那麼你應該問，好吧，下一步是什麼。因為我們肯定會爬、走、跑，就像讓我們把事情釘牢，而不僅僅是為了參與其中或為了發布新聞稿，但我們必須通過擁有絕對最好的類別來取悅我們的成員.泰德和格雷格在這方面做得非常出色，我們將繼續努力。所以排隊吧。當我們在比賽中獲勝時，我們就會接受這個問題。

Great. Spence, just turning over to you on margins. Does the guidance for a lower level of margin -- and you gave a lot of explanation around that in the letter. But outside of sort of the FX impact, does it have more to do with some of these incremental investments we're talking about like games and perhaps consumer products? Or does it have more to do with sort of the lower level of revenue growth that you're expecting?

偉大的。斯賓塞，只是在利潤上交給你。是否針對較低的保證金水平提供了指導-您在信中對此進行了很多解釋。但除了外匯影響之外，它是否與我們正在談論的一些增量投資有關，比如游戲，也許還有消費產品？還是與您預期的較低水平的收入增長有更多關係？

No, it's really just FX, Nidhi. So as we said in the letter, we lost about $1 billion of expected revenue in '22 through FX. That's about 2 points of margin. So if you just kind of look at our guide and add that back on, we're right on our pace of adding about 3 points of margin per year. And I can't forget we were overdelivering on margin in the last couple of years.

不，這真的只是 FX，Nidhi。因此，正如我們在信中所說，我們在 22 年通過 FX 損失了大約 10 億美元的預期收入。這大約是2個點的保證金。因此，如果您只是查看我們的指南並將其重新添加，那麼我們每年增加約 3 點保證金的步伐是正確的。而且我不能忘記我們在過去幾年中超額交付了保證金。

So that's really all that's happening here. And the FX move happened in really the last 6 months of last year. So what we've always said is we don't want to swing the business unnecessarily fast. We want to be able to invest in a healthy way into our growth opportunities. And over time, we will then rightsize our -- appropriately our investment levels, our cost structure, our pricing in order to rightsize for where the currencies are coming in. And so this gives us some time to do it.

所以這就是這裡發生的一切。外匯走勢實際上發生在去年的最後 6 個月。所以我們一直說的是，我們不想不必要地快速擺動業務。我們希望能夠以健康的方式投資於我們的增長機會。隨著時間的推移，我們將適當調整我們的投資水平、成本結構、定價，以便調整貨幣的流入方向。所以這給了我們一些時間來做這件事。

So it gives us a little time, but we will catch back up. We're still committed to roughly 3 -- average of 3 points of margin increase over any few year period. But there's no change there. We've been factoring in our content investment, our game investment all along.

所以它給了我們一點時間，但我們會趕上來的。我們仍然致力於在任何幾年內實現大約 3 - 平均 3 個百分點的利潤率增長。但是那裡沒有變化。我們一直在考慮我們的內容投資，我們的遊戲投資。

And I just want to say in our growth, too, we talk a lot about this deceleration. Obviously, we'd like to grow faster, but there's still very healthy growth in this business. What you're seeing in -- we ended the year last year with 19% growth year-over-year. What you've seen in the guide is 10% revenue growth for Q1, but that's a bit misleading again because of FX. There's about 4 points of drag in our revenue in Q1.

我只想說，在我們的成長過程中，我們也經常談論這種減速。顯然，我們希望增長更快，但這項業務仍有非常健康的增長。你所看到的——我們去年年底同比增長 19%。您在指南中看到的是第一季度收入增長 10%，但這又有點誤導，因為外匯。我們在第一季度的收入受到了大約 4 個百分點的拖累。

So the under -- what I would argue, FX-adjusted constant currency for Q1 year-over-year is about 14% growth. It's also a tough comp year-over-year in Q1 because you may remember, we increased prices in the U.S. in Q4 of '20, which flowed through to Q1 of '21 is when it was really materialized. So the year-over-year comp is tough. So the underlying organic revenue growth in the business is, right now, at least in Q1, more like 15%, plus 15%, 16%, 17%. So that's at least just in the quarter.

因此，我認為，第一季度經外匯調整的固定貨幣同比增長約 14%。在第一季度，這也是一個艱難的同比增長，因為您可能還記得，我們在 20 年第四季度提高了美國的價格，直到 21 年第一季度才真正實現。因此，逐年比較是艱難的。因此，目前，至少在第一季度，該業務的潛在有機收入增長更像是 15%，再加上 15%、16%、17%。所以這至少只是在本季度。

And that's still very healthy underlying growth in the business. I don't want to dismiss that. We'd love to be growing faster. We'd love to not have the negative FX swings, but it's still very healthy growth in the business.

這仍然是該業務非常健康的潛在增長。我不想否認這一點。我們希望增長得更快。我們希望沒有負面的外匯波動，但它仍然是業務的非常健康的增長。

Nidhi, since it's your last earnings interview, I will grant you one extra question.

Nidhi，因為這是你最後一次收益面試，我會再問你一個問題。

I have one last question. This will be the last one, but it's also for Spence. It's very exciting that you'll become sustainably free cash flow positive this year. Congratulations on reaching this milestone. I feel like I've been waiting 10 years to ask this question. But how will you balance M&A and buybacks with your free cash flow? And maybe sort of related to that, have we peaked in terms of that ratio of cash content spend to amortization? And how long will it take for earnings and free cash flow to kind of converge?

我有最後一個問題。這將是最後一個，但它也是給斯賓塞的。令人興奮的是，您今年將獲得可持續的自由現金流正數。祝賀你達到了這個里程碑。我覺得我已經等了 10 年才問這個問題。但是，您將如何平衡併購和回購與您的自由現金流？也許與此有關，我們是否在現金內容支出與攤銷的比率方面達到頂峰？收益和自由現金流需要多長時間才能收斂？

I can't believe you wanted to end with me, Nidhi. There's so many more exciting people to speak with on the call. So we appreciate what you said there. It is a big milestone for us to be cash flow positive going forward. We're excited for that. The business model has been proving out. So that's great in terms of our increasing profits, profit margins over time as well as cash.

我不敢相信你想和我一起結束，Nidhi。在電話會議上還有更多令人興奮的人可以交談。所以我們很欣賞你在那裡所說的。對我們來說，未來現金流為正是一個重要的里程碑。我們為此感到興奮。商業模式已經得到證明。因此，就我們不斷增加的利潤、利潤率以及現金而言，這非常好。

In terms of use of cash, and Spencer, you can chime in, too, but as we've talked about in prior calls, our top priority is to be responsible stewards of the business and our cash but to invest in the healthy growth of our business and strategically invest in the business, first organically, if there's been opportunistically M&A that -- M&A is not the strategy for us per se. M&A is a tactic to accelerate our strategy, whether it's to accelerate our content capabilities and capacity or just acquisition of IP like Dahl across film, TV and games as you've seen.

在現金的使用方面，斯賓塞也可以加入，但正如我們在之前的電話會議中談到的那樣，我們的首要任務是成為業務和現金的負責任管家，但投資於健康增長我們的業務並戰略性地投資於業務，首先是有機的，如果有機會併購的話——併購本身不是我們的戰略。併購是加速我們戰略的一種策略，無論是加速我們的內容能力和容量，還是只是收購像 Dahl 這樣的跨電影、電視和遊戲的 IP，如您所見。

And what's left over after that, we're not going to sit on excess cash, as we've said. Our capital allocation plan is as it's been, which is to have roughly 2 months of revenue in the form of cash on our balance sheet. And excess beyond that, we'll return to shareholders opportunistically as we have done. We did that to the tune of about $600 million last year in share repurchase, and we're authorized up to $5 billion share repurchase. So that's still our plan.

正如我們所說，在那之後剩下的就是我們不會坐視多餘的現金。我們的資本分配計劃保持不變，即在我們的資產負債表上以現金形式獲得大約 2 個月的收入。除此之外，我們將像我們所做的那樣機會主義地回報股東。去年我們進行了大約 6 億美元的股票回購，我們被授權進行高達 50 億美元的股票回購。所以這仍然是我們的計劃。

In terms of when the -- those ratios converge and earnings and cash flow look the same, I don't want to put a prediction out there. We're still very much in growth mode as a business. So it will continue to converge over time, but I don't want to declare a specific peak. It's been going in the right direction over a multiyear period, and it will continue to do so.

至於這些比率何時收斂並且收益和現金流看起來相同，我不想在那裡做出預測。作為一家企業，我們仍處於增長模式。所以它會隨著時間的推移繼續收斂，但我不想聲明一個特定的峰值。多年來，它一直在朝著正確的方向前進，並且將繼續這樣做。

The only thing I would add to that, Nidhi, is just on the capital allocation part. Just to remind you, our balance sheet target is for gross debt of about $10 billion to $15 billion. We ended the quarter slightly above the $15 billion mark. So as we said in the letter, we will be paying down about $700 million in Q1. But obviously, delevering a bit is something you should anticipate in terms of use of cash.

Nidhi，我唯一要補充的是資本分配部分。提醒您一下，我們的資產負債表目標是總債務約為 100 億至 150 億美元。我們在本季度末略高於 150 億美元大關。因此，正如我們在信中所說，我們將在第一季度支付約 7 億美元。但顯然，就現金使用而言，您應該預期去槓桿化一點。

And then just lastly, on the EPS free cash flow question. So I just want to remind you, there are some below-the-line items like the noncash remeasurement of our euro bonds that can skew EPS in any sort of given quarter, so just a call-out there.

最後，關於每股收益自由現金流的問題。所以我只想提醒你，有一些線下的項目，比如我們的歐元債券的非現金重新計量，可能會在任何給定的季度扭曲每股收益，所以這裡只是一個呼籲。

But thank you for your questions. I'm going to turn it over to Ted now to -- for his closing remarks and to take us home.

但謝謝你的提問。我現在將把它交給 Ted 以 -- 他的閉幕詞並帶我們回家。

Nidhi, thank you so much for these and thanks for today. The love of film and TV and games has built big businesses for people who can figure out what people love, build a creative environment that creators know how to feed it and then deliver it to fans with a value proposition that they appreciate. I think those fans are positively moving from old linear models and transactional models to more fan-friendly subscription services that are with high-quality programming, delivered well with great value.

Nidhi，非常感謝你的這些，感謝今天。對電影、電視和遊戲的熱愛為那些能夠弄清楚人們喜歡什麼的人們建立了大企業，建立了一個創作者知道如何餵養牠的創意環境，然後以他們欣賞的價值主張將其傳遞給粉絲。我認為這些粉絲正在積極地從舊的線性模型和交易模型轉向對粉絲更友好的訂閱服務，這些訂閱服務具有高質量的節目，交付良好且價值巨大。

That's absolutely happening, and it's happening all over the world. The pace of the migration may be a little hard to call from time to time when there are kind of varied global events or even local conditions, but it's absolutely happening. There's no question of that.

這絕對正在發生，並且正在世界各地發生。當有各種各樣的全球事件甚至當地條件時，遷移的速度可能會不時地被調用，但它絕對正在發生。毫無疑問。

Films that you love and series that you define yourself by and games that thrill you, that's a pretty great business. We're thrilled to be in it. We're also planning to continue to improve what we're doing and to grow this by growing revenue, by growing profits and by growing audience affinity around the world.

你喜歡的電影和你定義自己的系列以及讓你興奮的遊戲，這是一項非常棒的業務。我們很高興能參與其中。我們還計劃繼續改進我們正在做的事情，並通過增加收入、增加利潤和增加全球觀眾的親和力來實現這一目標。

So once again, Nidhi, if I can see you in person, I'd give you this. I've got 2 of them. Where is the other one?

所以再一次，Nidhi，如果我能親自見到你，我會給你這個。我有2個。另一個在哪裡？

Ted, I found one for you.

泰德，我給你找了一個。

Thank you, Nidhi.

謝謝你，尼迪。