Netflix Inc (NFLX) 2023 Q1 法說會逐字稿

Hello, and welcome to the Netflix Q1 2023 Earnings Interview. I'm Spencer Wang, VP of Finance, IR and Corporate Development. Joining me today are co-CEOs, Ted Sarandos and Greg Peters; and CFO, Spence Neumann. Our interviewer this quarter is Jessica Reif Ehrlich.

您好，歡迎參加 Netflix 2023 年第一季財報訪談。我是 Spencer Wang，財務、投資人關係與企業發展副總裁。今天與我一起出席的還有聯合首席執行官泰德·薩蘭多斯 (Ted Sarandos) 和格雷格·彼得斯 (Greg Peters)；和首席財務官斯賓塞·諾伊曼 (Spence Neumann)。本季我們的訪談者是 Jessica Reif Ehrlich。

And as a reminder, we will be making forward-looking statements and actual results may vary.

需要提醒的是，我們將做出前瞻性陳述，實際結果可能會有所不同。

With that, Jessica, I'm going to turn it over to you for your first question.

傑西卡，接下來我將把第一個問題交給你。

So let's start with Ted and Greg. You've worked together for over 15 years, but this is your first quarter as co-CEOs. Are there any highlights you want to share?

那麼就讓我們從 Ted 和 Greg 開始。你們已經合作了 15 年多，但這是你們作為聯合執行長的第一個季度。有什麼亮點想分享嗎？

Well, Jessica, as you pointed out, it's our first quarter together as co-CEOs but 15 years working together. And in those 15 years, you build a lot of respect and trusting each other to help you get you through some trying times. And not to let you down about there's no drama, but this was pretty much a business-as-usual quarter for us, having done this together for so long.

嗯，傑西卡，正如你所指出的，這是我們作為聯合首席執行官共同工作的第一個季度，但我們已經一起工作了 15 年。在這 15 年裡，你們彼此建立了深深的尊重和信任，這幫助你們度過了一些艱難的時刻。並不是讓您失望，因為沒有戲劇性的事情發生，但對我們來說，這是一個一切如常的季度，因為我們一起做了這麼長時間。

And Greg and I enjoy the same kind of trust, respect and shorthand that I enjoyed with Reed for so many years. I know that Greg did as well. So it's not as eventful as folks might have thought, and it's really been incredibly and wonderfully professionally stimulating to have a co-CEO, to get to tackle big problems together. So I think one of the things that we'll look back at Reed's incredible 25 years at Netflix, one of the great accomplishments, is facilitating this very, very smooth transition and succession.

格雷格和我享有與里德多年來所享有的同樣的信任、尊重和默契。我知道格雷格也是一樣。所以事情並不像人們想像的那麼複雜，擁有一位聯合執行長來共同解決大問題確實令人難以置信，也非常有助於職業發展。因此，我認為，回顧里德在 Netflix 的 25 年輝煌歷程，其中最偉大的成就之一就是促成了這一非常順利的過渡和繼任。

Great. So you've recently reduced prices in 116 countries. Is this a more local approach similar to what you did in India in 2021 or is the impetus to enable a successful introduction of password sharing and advertising tiers?

偉大的。你們最近在 116 個國家降低了價格。這是類似於您 2021 年在印度所採取的更在地化的方法嗎？還是為了成功引入密碼共享和廣告層？

I can take this one, if you want, Jessica. This is really about, we talked for the last few quarters about further refining our pricing strategy and monetization. And if you think back to when we did our global launch in 2016, it was pretty much across the board, a bit of a skim approach and not particularly sophisticated in terms of our pricing. So think of this as kind of that next step in our evolution of a bit of a better market fit, product market fit, pricing fit, with the aim of growing our penetration in these markets and also better medium and long-term revenue. So better for our members, better for our business.

如果你想要的話，我可以拿走這個，傑西卡。這實際上是關於我們在過去幾季中討論的進一步完善我們的定價策略和貨幣化。如果你回想一下我們在 2016 年進行全球發佈時的情況，你會發現當時我們的定價幾乎是全盤性的，有點類似撇脂定價，而且並不是特別複雜。因此，可以將此視為我們發展的下一步，即更好地適應市場、產品市場和定價，目的是擴大我們在這些市場的滲透率，並提高中長期收入。這對我們的會員更有利，對我們的業務也更有利。

But just want to emphasize, this is not a material to our business anytime in the near term, for sure. So it's a lot of countries but it represents less than 5% of our revenue. And so it's something that will, over the long term, hopefully, will benefit us. And we can point to an example of success as sort of like what we saw in India. So last year back in December of '21, we dropped prices in India between 20% to 60%. We saw engagement over the past year grow by about 30%, high growth in paid net adds. And also revenue, FX-neutral revenue growth actually accelerated from 19% in the year prior to 24% last year. So that's -- we're not saying every market is going to play out like that but that's what it would look like in success.

但我只想強調，這在短期內對我們的業務來說絕對不是什麼重要的事。雖然涉及許多國家，但其收入卻不到 5%。因此，從長遠來看，希望這將使我們受益。我們可以指出一個成功的例子，就像我們在印度看到的一樣。因此，去年，也就是 21 年 12 月，我們將印度的價格降低了 20% 至 60%。我們看到過去一年的參與度成長了約 30%，付費淨增值額大幅成長。此外，扣除匯率因素，收入中立成長實際上從前年的 19% 加速到去年的 24%。所以——我們並不是說每個市場都會這樣發展，但成功的情況就是這樣。

Great. Let's move on to password sharing. What have you seen in your Q1 new market launches, churn as well as conversion? And can you give us any specific color on what you've seen in Canada, whether it's in terms of new subs versus add-ons?

偉大的。讓我們繼續討論密碼共享。您在第一季的新市場發布、客戶流失和轉換方面看到了什麼？您能否向我們具體介紹一下您在加拿大看到的情況，無論是新潛艇還是附加潛艇？

Yes. I'll take that one. So this is an important transition for us, and so we're working hard to make sure that we do it well and as thoughtfully as we can. This last of the country rollouts have gone well, and maybe most importantly, were directionally consistent with what we saw in Latin America. So just to remind people what that looks like, it's very much like a price increase, we see an initial cancel reaction. And then we build out of that, both in terms of membership and revenue as borrowers sign up for their own Netflix accounts, and existing members purchase that extra member facility for folks that they want to share it with.

是的。我要那個。所以這對我們來說是一個重要的轉變，所以我們正在努力確保我們能盡可能周到地做好這件事。最後一個國家推廣工作進展順利，或許最重要的是，其方向與我們在拉丁美洲看到的情況一致。所以只是為了提醒人們這是什麼樣子，這很像價格上漲，我們看到了最初的取消反應。然後，我們以此為基礎，在會員費和收入方面進行拓展，因為借款人註冊了自己的 Netflix 帳戶，而現有會員則為他們想要與之共享的人購買額外的會員設施。

So first of all, it was a strong validation to see consistent results in these new countries because there are different market characteristics, different from each other and also different from the original Latin American rollout countries. So to get to a positive outcome, you mentioned Canada, we're now in a positive member and positive revenue position relative to pre-rollout. So that's a really strong confirmation that we've got an approach that we can apply in many different countries with different market characteristics, including our largest revenue countries.

首先，在這些新國家看到一致的結果是一個強有力的驗證，因為這些新國家的市場特徵各不相同，彼此不同，也不同於最初推出拉丁美洲的國家。因此，為了取得積極成果，正如您所提到的加拿大，與推出之前相比，我們現在擁有積極的會員數量和積極的收入狀況。因此，這有力地證明了我們的方法可以應用於具有不同市場特徵的許多不同國家，包括我們收入最大的國家。

In fact, we actually -- we could have launched that solution. We actually considered that option. But we also learned from this last set of launches about some improvements we can do, especially in areas that matter a lot to our members, things like having seamless access to Netflix as they've always been using it on the go or while traveling as well as making sure that we've got good tools for them to manage access to their accounts and their devices.

事實上，我們實際上——我們本可以推出該解決方案。我們確實考慮過這個選擇。但是，我們也從最近發布的一系列產品中了解到我們可以做的一些改進，特別是在對我們的會員非常重要的領域，例如無縫訪問 Netflix，因為他們一直在旅途中或旅行時使用它，以及確保我們有好的工具供他們管理對他們的帳戶和設備的訪問。

So all in, we felt, based on those results, it was better to take a little bit of extra time, incorporate those learnings and make this transition as smooth as possible as we can for members. And we think that approach also best serves the long-term business goals as well. So we're going to launch this new improved version broadly, including in the United States, in Q2.

總而言之，基於這些結果，我們認為最好花一點額外的時間，結合這些經驗教訓，盡可能為會員提供順利的過渡。我們認為這種方法也最符合長期業務目標。因此，我們將在第二季廣泛推出這個新的改進版本，包括在美國。

So as a follow-up, so the cadence, you said the U.S. in Q2. How about the rest of the world? And is there -- can you give us your thoughts on pricing and whether you have a preference for a current borrower to become a subscriber or an add-on?

因此，作為後續行動，您說的是美國在第二季。那麼世界其他地方的情況怎麼樣呢？您能否告訴我們您對定價的看法，以及您是否傾向於讓現有借款人成為訂戶或附加用戶？

Yes. So that launch we're doing in Q2 is a very broad launch. It includes the United States, includes many, many other countries. I mean we reserve the right for some countries where we think there's a different approach, but I would say the bulk of our countries. And certainly, when you think about it from a revenue perspective, the vast majority will be rolling out in Q2.

是的。因此，我們在第二季進行的發布是一次非常廣泛的發布。其中包括美國，也包括許多其他國家。我的意思是，我們為一些我們認為有不同做法的國家保留權利，但我想說大多數國家都是如此。當然，從收入角度考慮，絕大多數產品將在第二季推出。

You mentioned in terms of pricing, we'll look at that on a market-by-market basis. But obviously, we tested different pricing in these last rollouts that will be tested in Latin America. And that gives you a sense about how we're thinking about what is optimal pricing, especially in more affluent countries, so I'll leave it at that.

您提到了定價方面，我們會根據每個市場的具體情況來考慮。但顯然，我們在最近的推廣中測試了不同的定價，並將在拉丁美洲進行測試。這讓您了解我們如何考慮最佳定價，特別是在較富裕的國家，所以我就此打住。

And then in terms of preference, what we're trying to do is create a structure that really supports choice. So that gives an opportunity for folks to spin off to borrower accounts where they think that's the right solution for them or for use cases, which are legitimate use cases, where somebody wants to basically buy Netflix for a family member or something like that, we want that extra member to be in place, too. So we don't really have, I'd say, a strong preference. We're not trying to steer in one perspective other than using pricing to both satisfy those customer choice goals as well as thinking about long-term revenue optimization.

就偏好而言，我們試圖做的是創建一個真正支持選擇的結構。因此，這為人們提供了一個機會，讓他們可以將服務分拆到借款人帳戶，他們認為這是適合他們或用例的正確解決方案，這些用例是合法的，例如有人想為家庭成員購買 Netflix 或類似的東西，我們希望額外的成員也能到位。所以我想說，我們其實沒有強烈的偏好。我們並不是試圖從某個角度進行引導，而是利用定價來滿足客戶的選擇目標並考慮長期收入優化。

One more on password sharing, are there any incremental cost? It seems like content distribution, marketing are already in your expenses. So is the incremental margin 100%? Or are there plans to reinvest some of this revenue so it doesn't all flow through?

關於密碼共享，還有什麼額外成本嗎？看起來內容分發和行銷已經包含在你的開支中了。那麼增量利潤率是100%嗎？或是否有計劃將部分收入重新投資，以免全部流走？

Well, I'll leave it to -- go ahead, Spencer. Do you want to take this one?

好吧，我會把它留給——繼續吧，斯賓塞。你想拿這個嗎？

No, go for it, Greg.

不，去吧，格雷格。

No, you got it.

不，你明白了。

I was going to say there's really not -- other than just kind of just the general kind of allocation of resources, I wouldn't say there's real incremental costs. But of course, we always want to reinvest. So as you kind of see with our kind of guidance and our objectives generally, Jessica, we're looking to reaccelerate the revenue growth. That's the path that we're on right now.

我想說的是，除了一般的資源分配之外，實際上沒有其他真正的增量成本。但當然，我們總是希望再投資。因此，正如您從我們的指導和總體目標中看到的那樣，傑西卡，我們希望重新加速收入成長。這就是我們現在所走的路。

And as we do that, we want to kind of balance, gradually increasing margins. You see that in our guide where we're looking to tick up margins a bit to the 18% to 20% range full year relative to just under 18% last year but balance that with that big prize ahead of us. So reinvesting to more and more great entertainment for our members and drive that flywheel of more entertainment, more value for members and, ultimately, more and more members over time and then build a really, really big and profitable business.

當我們這樣做的時候，我們希望達到平衡，並逐步增加利潤。您可以在我們的指南中看到，我們希望將全年利潤率略微提高至 18% 至 20% 左右，而去年的利潤率略低於 18%，但要與我們面前的大獎保持平衡。因此，我們將重新投資於為我們的會員提供越來越多的精彩娛樂，並推動飛輪產生更多的娛樂，為會員提供更多的價值，並最終隨著時間的推移吸引越來越多的會員，然後建立一個真正龐大且有利可圖的業務。

So let's move on to advertising. Netflix appears to have a huge advantage in, let's call it, television advertising. I mean you pretty much have nothing to lose from a legacy perspective and everything to gain on an AVOD platform. Given the limited ad load, premium video content, your humongous reach and engagement with some pretty hard-to-reach demographics as well as the ongoing mass transition from linear to streaming, your position is enviable. Having said that, you seem to be very careful in your advertising rollout. Can you give us your key learnings to date and what the growing pains have been so far?

那麼讓我們繼續討論廣告。 Netflix 似乎在電視廣告方面擁有巨大優勢。我的意思是，從傳統角度來看，你幾乎沒有什麼可失去的，而在 AVOD 平台上你卻可以獲得一切。考慮到有限的廣告量、優質的影片內容、巨大的覆蓋範圍以及與一些難以觸及的人群的互動，以及正在進行的從線性到串流媒體的大規模轉變，您的地位是令人羨慕的。話雖如此，你們在廣告投放方面似乎非常謹慎。您能否向我們分享您迄今為止的主要收穫以及迄今為止所遇到的成長煩惱？

Yes. As you stated, we're significantly optimistic about the long-term opportunity, for the reasons that you mentioned. But we've always expected and we continue to expect, frankly, this to be a gradual build. It follows a very similar process that we've used in so many other areas where we get in, we learn as we go, we iterate. And we found that having that approach yields basically great long-term outcomes as we sort of grow and learn.

是的。正如您所說，出於您提到的原因，我們對長期機會非常樂觀。但坦白說，我們一直期望並且將繼續期望這是一個逐步建造的過程。它遵循我們在許多其他領域使用過的非常相似的過程，我們進入其中，邊做邊學，不斷迭代。我們發現，隨著我們不斷成長和學習，這種方法基本上會產生很好的長期效果。

So I would say where we're at today, we've got a lot of work to do to develop -- continue to develop features that support advertisers. We're rolling out things like measurement and verification, but we've got a bigger, longer road map that we have to go do there. We're improving our go-to-market and sales capabilities in partnership with Microsoft. There's a lot of good work that we have to go do. And some of this is hard work. This is country by country. You've seen us add programmatic private marketplace that gives advertisers more ways to buy as we grow inventory.

所以我想說，就我們目前的情況而言，我們還有很多工作要做——繼續開發支援廣告商的功能。我們正在推出諸如測量和驗證之類的工作，但我們還有更大、更長的路線圖要去實現。我們正在與微軟合作，提高我們的市場進入和銷售能力。我們還有很多好的工作要做。其中有些工作是艱苦的。這是針對各國的情況的。您已經看到我們添加了程序化私人市場，隨著我們增加庫存，它為廣告商提供了更多的購買方式。

And then we're also trying to improve things on the consumer-facing side. So we're adding more features to the ad plan. We're making that experience better for members. And through that sort of process, we expect those iterations, which we're trying to go as fast as we can on them while being judicious and thoughtful about the business, to really add up over a period of time into a significant, highly material and highly lucrative, high-margin business. But there's plenty to go do and we're trying to maintain a fast pace but also a thoughtful pace.

然後我們也在努力改善面向消費者的情況。因此我們在廣告計劃中添加了更多功能。我們正在為會員提供更好的體驗。透過這樣的過程，我們期望這些迭代（我們試圖盡可能快地進行這些迭代，同時對業務保持明智和深思熟慮）能夠在一段時間內真正積累成一項重要、高度實質性、利潤豐厚、高利潤的業務。但還有很多事情要做，我們正努力保持快速的節奏，同時也保持深思熟慮的節奏。

There've been a lot of press reports regarding your buildup of ad tech capabilities. Can you provide an overview of plans, time frame and cost?

有很多新聞報道談論你們在廣告技術能力方面的建構。您能否概述一下計劃、時間框架和成本？

Yes. I would say we have ambition to be innovative in this space. And a lot of that innovation is thinking about not a one-size-fits-all in terms of the member experience and thinking about what's the right time to flight an ad, things like that. But I would also say that we're very much in the mode right now where we're doing a lot of work that is following a well-trodden path to build a big business back to when you think about verification, measurement, et cetera, what we're doing on programmatic. Those are sort of, I'd say, relatively straightforward things. So a lot of the work that we're doing is really heavily in that space.

是的。我想說我們有志於在這個領域進行創新。許多創新都是在考慮會員體驗方面不採取一刀切的做法，並考慮什麼時候才是投放廣告的最佳時機，諸如此類的事情。但我還要說的是，我們現在正處於一種模式，我們正在做很多工作，遵循一條既定的道路來打造一個大企業，當你考慮驗證、測量等等時，我們會回到程序化上所做的事情。我想說，這些都是相對簡單的事。因此，我們所做的許多工作實際上都與該領域有關。

And then in terms of incremental costs, Spence, do you want to chime in here?

那麼，就增量成本而言，斯賓塞，你想加入討論嗎？

Sure. I'd say just generally, Jessica, we try to, in all of this, firstly, we've always -- we've talked about this crawl, walk around, which Greg mentioned, being very thoughtful and methodical on how we're building the business and, with that also, how it impacts our overall financials, our revenue and our incremental profit contribution. And we believe we can do that in a very healthy way. So that's what we're building towards. So yes, there is some cost to this, both in terms of the cost of the Microsoft partnership and the cost to kind of some building out of our capabilities, people as well as tech capabilities, but all very manageable.

當然。我想說的是，傑西卡，總的來說，在所有這些方面，首先，我們總是——我們一直在談論這種爬行、走動，正如格雷格提到的那樣，我們對如何建立業務非常深思熟慮和有條不紊，以及它如何影響我們的整體財務狀況、我們的收入和我們的增量利潤貢獻。我們相信我們可以以非常健康的方式做到這一點。這就是我們的目標。所以是的，這需要一些成本，包括與微軟合作的成本以及建立我們的能力、人員和技術能力的成本，但都是可以控制的。

We also talked about a little bit of content costs as we continue to kind of -- we increased our level of content parity on the plan this past quarter, which is great. So it's about 95%-plus of viewing parity, which is, again, a great progress. So we're -- we keep moving forward, but this is all at a level that we believe is not just better for our members with a lower-priced option but better for our business. And we think we could do it, and are doing it, in a way that's, I would say, without being overly specific, think of it as like 50% or more incremental profit contribution to the business.

我們也談到了一些內容成本，因為我們在上個季度繼續提高了計劃中的內容平價水平，這很好。因此，收視率大約為 95% 以上，這又是一個巨大的進步。因此，我們 - 我們會繼續前進，但我們相信這一切都處於一個水平，即透過低價選擇不僅對我們的會員更有利，而且對我們的業務也更有利。我們認為我們可以做到，而且我們正在這樣做，我想說，不必太具體，我們可以將其視為對業務 50% 或更多的增量利潤貢獻。

When you come to the May advertising upfront, which is in a couple of weeks, it sounds like you're coming with the standards here now. Do you have any plans to introduce it to your premium tier? And how much scale, meaning how many subs, do you expect on the platform when you roll out -- when the upfront commitments come in the fall, how much scale will you have?

當您提前了解幾週後的五月廣告時，聽起來您現在已經達到了標準。您有計劃將其引入您的高級層嗎？當您推出該平台時，您預計它的規模有多大，也就是說有多少用戶？當秋季預付承諾到來時，您的規模會有多大？

Yes. So on your first question, we're always thinking about and working to improve that plan structure, the pricing. We've got 2 goals in mind when we do that. One is we want to give a wide range of consumers, and ideally, increasingly, wide range of consumers, access to our great stories at a range of prices with appropriate corresponding features. .

是的。關於您的第一個問題，我們一直在思考並努力改善該計劃結構和定價。當我們這樣做的時候，我們心中有兩個目標。一是我們希望讓廣大消費者，理想情況下是越來越多的廣大消費者，能夠以各種價格和相應的功能，閱讀到我們精彩的故事。 。

The second goal is think about optimizing long-term revenue. A good example of this is based on the economics of our ads plan, based on the limited switching behavior that we've seen off of standard and premium, we've upgraded the ads plan features, both in terms of video resolution or video quality and number of concurrent streams because we think it supports both of those goals. So that's a good example of that.

第二個目標是考慮優化長期收入。一個很好的例子是，基於我們的廣告計劃的經濟性，基於我們在標準和高級版中看到的有限切換行為，我們升級了廣告計劃功能，包括視頻分辨率或視頻質量以及並發流數量，因為我們認為它支持這兩個目標。這是一個很好的例子。

I would say beyond that, we've got -- we'll continue to evaluate as we always do. You've seen us make moves in the space before. But we've got nothing more to add on that today.

我想說的是，除此之外，我們還會像往常一樣繼續評估。您之前已經看到我們在太空中採取的行動。但今天我們沒有什麼好補充的。

And then in terms of scale, obviously, we're growing. Every day we grow and we're seeking to continue to grow, but we're not going to sort of announce a target or what we expect, forecast, let's say, for upfronts at this point.

從規模來看，我們顯然正在成長。我們每天都在成長，我們也在尋求繼續成長，但我們不會宣布目標或我們的預期，比如說，對於預付款的預測。

One more advertising question and then I'll move on. But can you provide ARPU specifics on what you've seen so far? Because you mentioned in the release that the revenue is actually higher than even standard. So it seems like so far, so good.

再問一個廣告問題，然後我就可以繼續了。但是您能否提供迄今為止所見的 ARPU 細節？因為您在新聞稿中提到，收入實際上甚至高於標準。到目前為止，一切似乎都很好。

Yes, I can jump in. I mean, yes, overall, we're pleased with our kind of per member ad plan economics. It's higher than our basic plan overall. And as you say, in the U.S., it's actually even higher than our standard plan. So we really like the path we're on, the trajectory we have. And as I said, it's kind of a win-win because it's a lower-priced option for our members, and it's both kind of incremental revenue, incremental profit to -- for the business. So it makes the business stronger, which, of course, we can then reinvest into more and more great entertainment.

是的，我可以插話。我的意思是，是的，總的來說，我們對我們的每位會員廣告計劃經濟效益感到滿意。總體而言，它高於我們的基本計劃。正如您所說，在美國，它實際上甚至高於我們的標準計劃。所以我們真的很喜歡我們所走的道路和我們的軌跡。正如我所說，這是一種雙贏的局面，因為這對我們的會員來說是一個價格較低的選擇，對於企業來說，這既是一種增量收入，也是一種增量利潤。因此，它使業務更加強大，當然，我們可以將其重新投資到更多精彩的娛樂項目中。

So we like the path. But again, it's early. We're only a couple of quarters into this, Jessica, so we're going to get better, as Greg said, better targeting and measurement, better kind of tools and buying options for advertisers. So we think all of that will actually kind of build on this so that we'll reinforce and strengthen that kind of premium CPM ad network that we're building.

所以我們喜歡這條路。但現在還為時過早。傑西卡，我們才剛開始幾個季度，所以正如格雷格所說，我們會做得更好，為廣告商提供更好的定位和衡量、更好的工具和購買選擇。因此，我們認為所有這些實際上都會以此為基礎，以便我們能夠鞏固和加強我們正在建立的優質 CPM 廣告網路。

So maybe switching gears a little bit to the capital returns and free cash flow. You did raise your free cash flow guidance, but you kept your margins the same for this year. What are your longer-term margin growth or expectations at this point? Pre-COVID, you had indicated 300 basis points of improvement per year over a few year period. Can you provide any update to that?

因此，也許需要稍微改變一下焦點，轉向資本回報和自由現金流。您確實提高了自由現金流指導，但今年的利潤率保持不變。目前，您的長期利潤成長或預期是多少？在新冠疫情之前，您曾表示，在幾年的時間裡，每年都會有 300 個基點的改善。您能提供任何最新消息嗎？

We're not -- we've never provided a long-term guide to our margins. But I'd say we're already in a place where we feel great about the business that we have. It's a very -- it's a great business model. The business is at scale with over $30 billion of revenue, healthy profit margins, growing margins, growing free cash flow. So that's sort of a starting point.

我們從未提供過我們的利潤率的長期指導。但我想說的是，我們已經對自己的業務感到非常滿意。這是一個非常棒的商業模式。該業務規模龐大，收入超過 300 億美元，利潤率健康，利潤率不斷增長，自由現金流不斷增長。這是一種起點。

And as I mentioned before, we're trying to balance, as we reaccelerate revenue, ticking up those margins with also reinvesting back into the business, back into that member base, back into that big prize, where we feel like we're so small today. We've talked on recent earnings calls where we represent, we believe, roughly 5% of that direct consumer spend in the areas of entertainment that we're participating in today, primarily in film, TV and games.

正如我之前提到的，我們正在努力保持平衡，因為我們重新加速收入，提高利潤率，同時也將資金重新投資於業務，重新投資於會員基礎，重新投資於大獎，而我們今天感覺自己還很渺小。我們在最近的收益電話會議上談到，我們認為，在我們今天參與的娛樂領域，主要是電影、電視和遊戲，我們代表了消費者直接支出的約 5%。

And when we think about even just the member population that's available, those 1 billion-plus broadband households, and even today, roughly 450 million, 500 million of those being connected TV households, and we only have 230 million-ish paying members today, roughly, right, so that's why we're so focused on addressing with paid sharing and then just making our business and our -- the value that we bring to the service better each day to bring in more members. So that's really what we're working towards.

當我們考慮現有的會員人口時，那些超過 10 億的寬頻家庭，即使在今天，其中大約有 4.5 億到 5 億是聯網電視家庭，而我們今天大約只有 2.3 億付費會員，所以這就是為什麼我們如此專注於解決付費共享問題，然後讓我們的業務和我們——我們每天為服務帶來的價值更好，以吸引更多的會員。這確實是我們努力的目標。

And then long term, we just -- we don't see ourselves approaching a near-term ceiling. There's lots of proxies out there. Entertainment services and networks at scale traditionally have been well above our roughly 20% operating margin. So we believe we have a long way to go and we have some inherent advantages. We're a truly global entertainment network, perhaps the first, with really healthy leading engagement and a really scalable content model. So we believe we've got a long way to go but not really putting more specific guidance out for now.

從長遠來看，我們只是 - 我們認為自己不會接近近期的上限。那裡有很多代理。大規模娛樂服務和網路傳統上遠高於我們約 20% 的營業利潤率。因此，我們相信我們還有很長的路要走，我們有一些固有的優勢。我們是一個真正的全球娛樂網絡，也許是第一個，擁有真正健康的領先參與度和真正可擴展的內容模式。因此，我們相信我們還有很長的路要走，但目前還沒有提出更具體的指導。

Jessica, just if I could add an example of that, of the scale of the business being global, is that every one of our big content wins start as a local win. And then in success, they roll out and they get regional, then they reach as far, then they get global, and it's huge success. And there's no marginal cost to all that additional audience when we get it right.

傑西卡，如果我可以舉一個例子來說明這一點，即業務規模是全球性的，那麼我們的每一個重大內容勝利都是從本地勝利開始的。然後他們成功推出產品，進入區域市場，然後擴展到更遠的地方，然後走向全球，並取得了巨大的成功。如果我們做得正確，那麼對於所有額外的觀眾來說，就不會產生邊際成本。

So by driving -- creating those stories that drive growth of the business in local territories, it provides content into the pool that people can fall in love with, and it's just as likely that we can get a gigantic hit from anywhere in the world. And that's really the scale of our operating business. And to go back to what Spence said about the potential for -- to even grow margins beyond where we're at today is very, very high.

因此，透過推動——創造那些推動當地業務成長的故事，它為人們提供了可能喜愛的內容，而且我們同樣有可能在世界任何地方獲得巨大的成功。這確實是我們營運業務的規模。回到史賓塞所說的，利潤率甚至有可能超越目前的水平，這是非常非常高的。

Could you give us an update on your capital return plans? I mean how are you thinking about -- you announced the 1.2 million buyback in Q1. But relative to your free cash flow and an incredible balance sheet, you have a lot of capacity. So can you give us any color on how you're thinking about capital returns over the longer term?

您能否向我們介紹一下您的資本回報計劃的最新情況？我的意思是您是怎麼想的——您在第一季宣布了 120 萬美元的回購。但相對於您的自由現金流和令人難以置信的資產負債表，您擁有很大的產能。那麼您能否向我們介紹一下您對長期資本回報的看法？

Sure. Spencer, do you want to take that one?

當然。史賓塞，你想拿那個嗎？

Yes, I can take that one. Thanks, Jessica, for the question. And we are happy to be fully investment-grade as of Q1. So that's a nice milestone for the company. And you're right, there's no change to our capital allocation philosophy. So we are still targeting to maintain minimum cash equivalent to roughly 2 months of revenue. Based on the Q1 numbers, it's about $5.4 billion of minimum cash. We ended the quarter with about $7.8 billion on the balance sheet, so we do have about $2.4 billion of excess cash. So that is why we did indicate in the letter that our share repurchases will accelerate over the course of the year.

是的，我可以接受這個。謝謝傑西卡提出這個問題。我們很高興自第一季起已達到完全投資等級。這對公司來說是一個美好的里程碑。你說得對，我們的資本配置理念沒有改變。因此，我們仍將目標設定為維持相當於約 2 個月收入的最低現金。根據第一季的數據，最低現金約為 54 億美元。本季末，我們的資產負債表上顯示約 78 億美元，因此我們確實有約 24 億美元的超額現金。這就是為什麼我們在信中表示我們的股票回購將在年內加速。

And then one other minor thing I forgot to mention in my intro, that this video interview will include forward-looking statements and actual results may vary. So I do want to say that, and here's evidence that this video interview is actually not scripted. So back to you, Jessica.

然後，我在介紹中忘記提到的另一件小事是，這次視訊訪談將包含前瞻性陳述，實際結果可能會有所不同。所以我確實想這麼說，而且有證據表明這次視訊訪談其實不是照本宣科的。那麼回到你這裡，潔西卡。

So Ted, how are you preparing for a potential writers' strike -- potential because it's likely?

那麼泰德，你如何為可能發生的作家罷工做準備——這是有可能發生的，對嗎？

Well, Jessica, firstly, I'd say, we respect the writers and we respect the WGA, and we couldn't be here without them. We don't want a strike. The last time there was a strike, it was devastating to creators. It was really hard in the industry. It was painful for local economies that support production and it was very, very, very bad for fans. So if there's a strike, and we want to work really hard to make sure we could find a fair and equitable deal so we can avoid one, but if there is one, we have a large base of upcoming shows and films from around the world that we could probably serve our members better than most.

好吧，傑西卡，首先我想說，我們尊重編劇，我們尊重美國編劇工會 (WGA)，沒有他們我們就不可能走到今天。我們不想罷工。上次罷工對創作者來說是毀滅性的。在這個行業裡生活真的很艱難。這對於支持製作的當地經濟來說是痛苦的，對粉絲來說更是極其糟糕的。因此，如果發生罷工，我們會非常努力地確保能夠找到公平合理的協議，以避免罷工，但如果發生罷工，我們擁有來自世界各地的大量即將上映的節目和電影，我們可能可以比大多數會員更好地為會員提供服務。

And we really don't want this to happen, but we had to make plans for the worst. And so we do have a pretty robust slate of releases to take us into a long time. But just to be clear, we're at the table and we're going to try to get to an equitable solution so there isn't a strike.

我們確實不希望發生這種情況，但我們必須為最壞的情況做好計劃。因此，我們確實擁有一系列相當強大的發行計劃，可以持續很長一段時間。但需要明確的是，我們已經坐在談判桌前，我們將努力達成公平的解決方案，以避免罷工。

And beyond the strike, just once you get past that, how do you expect content spending to change over the next few years? You've kind of been at the $17 billion cadence. Does it depend on revenue growth? Can you give us some color on how you're thinking about that?

除了罷工之外，一旦罷工過去，您預計未來幾年內容支出將如何變化？您的投資金額已經達到 170 億美元了。這取決於收入成長嗎？您能否告訴我們您對此有何看法？

Well, yes, it depends on revenue growth. And also keep in mind that the way that revenue -- or the way that content spend hits us, it's with start of productions and deliveries. We still worked through or we came through or comping off of those post-COVID floodgates opening, and so that does throw -- makes the content spend a little lumpier. We expect to be back to about the $17 billion level in '24. And the rate of growth depends on the rate of revenue growth, for sure.

嗯，是的，這取決於收入成長。還要記住，收入或內容支出對我們產生影響的方式是從製作和交付開始的。我們仍然在努力度過或擺脫 COVID 後閘門打開的困境，因此這確實會讓內容支出變得更加不平衡。我們預計到2024年將回到約170億美元的水平。當然，成長率取決於收入成長率。

Just to add to Ted's point because I totally agree with all of that and -- but again, it's -- there's a big opportunity ahead, so I just want to reinforce that. We're not going to -- we said we'd stay at roughly $17 billion on average over a few year period, over that 2022 to '24 period, but there's a big entertainment market to go after beyond that. So as we reaccelerate revenue, we see a lot of opportunity to grow into that viewing and engagement and business opportunity ahead. So we expect to be there and we just have to build into it.

我只是想補充泰德的觀點，因為我完全同意他的觀點，而且——但再說一次，未來還有很大的機遇，所以我只想強調這一點。我們不會——我們說過，在 2022 年至 2024 年的幾年內，我們的收入將平均保持在 170 億美元左右，但除此之外，還有一個巨大的娛樂市場值得我們去爭取。因此，隨著我們重新加速收入成長，我們看到了許多機會來增加觀看量、參與度和未來的商業機會。因此，我們希望能夠到達那裡，我們只需要努力去實現它。

Absolutely.

絕對地。

Do you have any thoughts on revisiting your film strategy? In terms of like theatrical output as well as distribution, you've had so much success at the Academy Awards. So does that change anything for you? And you also recently had a restructuring in this division. Is there anything to read from that?

您對重新審視自己的電影策略有什麼想法嗎？從戲院產量和發行來看，你們在奧斯卡頒獎典禮上取得了巨大的成功。那麼這對你來說有什麼改變嗎？而你們最近也對該部門進行了重組。那裡有什麼可讀的嗎？

No. Jessica, the film division is doing great. They really are building some great films. As you pointed out, the success at the Oscars was great. But the thing even better than that was the movies that won so big were also very, very popular with fans. So this is award-winning, critically acclaimed and enormously popular with fans. Even, like I said, with All Quiet on the Western Front was that. Pinocchio certainly was that. And we're really proud of the films that were in the mix because they were loved by fans. So we're really happy with the investment in film. Of course, we're trying to improve it, like we do with all of our films.

不，傑西卡，電影部門做得很好。他們確實在製作一些很棒的電影。正如您所指出的，奧斯卡頒獎典禮取得了巨大的成功。但更棒的是，獲得大獎的電影也非常受影迷歡迎。因此，這是一部屢獲殊榮、廣受好評並深受粉絲喜愛的作品。甚至，就像我說的，《西線無戰事》也是如此。匹諾曹確實如此。我們對這些入圍的電影感到非常自豪，因為它們深受影迷的喜愛。所以我們對電影的投資感到非常高興。當然，我們正在努力改進它，就像我們對待所有電影一樣。

But our release strategy, remember, there's a lot of ways to create and collect demand for a film. Driving folks to a theater is just not our business. We create that demand, we collect that demand on our subscription service with our members. And I think having big, new, desirable content, including feature films in the first window, drives value for our members and drives value to the business. So no major changes in play, except for trying to continue to improve the films for our members and make a big splash with films that are loved and watched.

但請記住，我們的發行策略有很多方法可以創造和收集對電影的需求。開車送人們去劇院不是我們的事。我們創造這種需求，並透過我們的會員訂閱服務收集這種需求。我認為，擁有大量、新穎、有吸引力的內容（包括首播窗口的劇情片）能為我們的會員帶來價值，也能為企業帶來價值。因此，除了嘗試繼續為我們的會員改進電影並讓受人喜愛和觀看的電影引起轟動之外，沒有重大的改變。

And it's really leaning into, we believe, an advantage we have of delivering that value to our members. But because of our reach and our scale, to have over 230 million paying members at our average revenue per member, it affords the opportunity to invest in these big movies, bring them to our members is just one other piece or area, a variety of content and must-watch content and entertainment for our members. So it's really kind of leaning into that advantage.

我們相信，這確實有利於我們提供會員價值。但由於我們的覆蓋範圍和規模，以平均每位會員的收入計算，我們擁有超過 2.3 億付費會員，這為我們提供了投資這些大電影的機會，將它們帶給我們的會員只是另一個方面，為我們的會員提供各種內容和必看的內容和娛樂。所以這確實有點傾向這種優勢。

And I think it's tempting to make the comparison between the services, but the other services don't have that scale, as you pointed out, Spence. They don't have the revenue base or the viewer base to support with a single window the way we can support even big-budget films with a single window on Netflix.

我認為對這些服務進行比較是很有誘惑力的，但其他服務並沒有那麼大規模，正如你所指出的，斯賓塞。他們沒有足夠的收入基礎或觀眾基礎來透過單一窗口來支持，而我們卻可以透過 Netflix 的單一窗口來支持大製作電影。

How is your live strategy evolving? And Chris Rock was a huge hit, but Love Is Blind had some technical issues. Is live a big advertising driver? Do you need to invest more to beef up your technical capabilities?

您的現場直播策略是如何演變的？克里斯洛克的《愛情是盲目的》大獲成功，但《愛情是盲目的》卻出現了一些技術問題。直播是推動廣告的重要因素嗎？您是否需要投入更多資金來增強您的技術能力？

Greg, do you want to grab that?

格雷格，你想抓住它嗎？

Yes, I'll kick it off. I would start by saying we're really sorry to have disappointed so many people. We didn't meet the standard that we expect of ourselves to serve our members. And just to be clear, from a technical perspective, we've got the infrastructure. We had just a bug that we introduced. Actually, when we implemented some changes to try and improve live streaming performance after the last live broadcast, Chris Rock in March, and we just didn't see this bug in internal testing because it only became apparent once we have put sort of multiple systems interacting with each other under the load of millions of people trying to watch Love Is Blind.

是的，我會開始的。首先我想說，我們真的很抱歉讓這麼多人失望了。我們沒有達到為會員服務所期望的標準。需要明確的是，從技術角度來看，我們已經擁有了基礎設施。我們剛剛引入了一個錯誤。實際上，在三月克里斯洛克 (Chris Rock) 的上一次直播之後，我們實施了一些改變，試圖提高直播性能，但我們在內部測試中並沒有發現這個錯誤，因為只有當我們將多個系統放在數百萬人試圖觀看《愛情是盲目的》的負載下相互作用時，這個錯誤才會顯現出來。

So we hate it when these things happen, but we'll learn from it and we'll get better. And we do have the fundamental infrastructure that we need. And I would say the good news is that, ultimately, 6.5 million viewers watched and enjoyed the show. Then I'll turn it over to Ted to talk about more of the strategy side.

因此，當這些事情發生時，我們很討厭，但我們會從中學到教訓，變得更好。我們確實擁有我們所需的基礎設施。我想說的好消息是，最終有 650 萬觀眾觀看並欣賞了這場演出。然後我將讓泰德來談論更多戰略方面的問題。

Yes. Look, we've said we want to use live when it makes sense creatively, when it helps the content itself. So a reunion show that's going to generate news and buzz, it really does play better live when people can enjoy it together. Certainly, the Chris Rock standup show played out so well because so much anticipation for what he's going to say in that set. So when we have the opportunities to do projects like that, we like the fact that we have the option to do it.

是的。你看，我們已經說過，當直播具有創造性意義時，當直播對內容本身有幫助時，我們就會使用直播。因此，一場能夠引起新聞和關注的重聚演出，當人們能夠一起欣賞時，現場演出的效果確實會更好。當然，克里斯洛克的脫口秀表演之所以如此成功，是因為人們對他接下來的表演充滿期待。因此，當我們有機會做這樣的專案時，我們很高興能夠選擇這樣做。

As Greg said, we are super disappointed to not be able to come across with the live product for everyone who wanted it on Love Is Blind Reunion. But we're super thrilled that people love the show. And it does point to the kind of love for that brand and for the growing love for those unscripted brands on Netflix. And some of them will be live. And I do think sometimes those results-oriented shows do play out a little bit better on live and they do generate a lot of conversation. But keep in mind, like on Chris Rock, about 90% of the viewing have been after. But it doesn't change the fact that it was a big event when it happened live.

正如格雷格所說，我們非常失望無法在《愛是盲目的重聚》中為所有想要的人提供現場產品。但我們非常高興人們喜歡這個節目。它確實表明了人們對該品牌的喜愛，以及對 Netflix 上那些非劇本品牌日益增長的熱愛。其中一些將會直播。我確實認為，有時這些以結果為導向的節目在現場直播中確實會表現得更好一些，而且確實會引發很多討論。但請記住，就像克里斯洛克 (Chris Rock) 一樣，大約 90% 的觀看都是在之後。但這並不能改變當它在現場發生時這是一件大事的事實。

Is it a big driver of the advertising?

它是廣告的主要動力嗎？

We have no current -- go ahead, Greg.

我們沒有電流 - 繼續吧，格雷格。

No, go ahead, Ted. You take it.

不，繼續吧，泰德。你拿著。

I'll just say we do not currently have advertising in the live broadcast.

我只想說我們目前在直播中沒有廣告。

Right. I have one more question on password sharing, I'll just go back to that for a second. But of the 30 million UCAN and 100 million-plus global borrowers, that sounds like, from your release, that's actually the number of households. What is the number of potential subs or add-ons? I mean what is the potential conversion from these 100 million-plus households?

正確的。我還有一個關於密碼共享的問題，我先回顧一下。但是，從您發布的消息來看，在 3000 萬 UCAN 和 1 億多全球借款人中，這實際上就是家庭數量。潛在的子組件或附加組件的數量是多少？我的意思是，這 1 億多戶家庭的潛在轉換率是多少？

Well, to some degree, I mean, the borrowers, those borrowers that represent well-qualified people, in the sense that they have all the technical needs to get to Netflix, the smart TV, the broadband access, they know how the system works. They've clearly enjoyed content on the service before. So having said that, we see a sort of a range of engagement amongst those borrowers.

嗯，在某種程度上，我的意思是，借款人，那些代表高素質人群的借款人，他們擁有使用 Netflix、智慧電視、寬頻存取的所有技術需求，他們知道系統是如何運作的。他們之前顯然很享受該服務的內容。話雖如此，我們看到這些借款人的參與度有一定程度的提高。

So some folks are watching as much of our shows as a normal paying account, and those folks have very strong likelihood to convert, I would say. And then we see that tailor off -- taper off rather through that range of folks. And if you're watching much less, it's much less likely that you'll ultimately convert. But even in that case, I'd say this represents a really important structural shift where we'll develop that one-to-one relationship without pricing distortion, without membership distortion, with a whole new range of members. So we'll see membership grow through that approach. We'll see revenue grow through it as well.

因此，有些人觀看我們節目的量與普通付費帳戶的量一樣多，我想說，這些人轉變的可能性非常大。然後，我們看到，這範圍的人群逐漸減少。如果你觀看的次數太少，那麼你最終轉變的可能性就會很小。但即使在這種情況下，我認為這代表著一個非常重要的結構性轉變，我們將與全新的會員建立一對一的關係，而不會出現價格扭曲、會員人數扭曲的情況。因此，透過這種方式，我們會看到會員人數不斷增長。我們也將看到收入由此成長。

But we'll also see a situation where in high viewer penetration markets, like the United States that you mentioned the stats there, some of those folks won't convert, but they'll represent essentially a pool of people that we can then go after with improving our offering, more amazing movies, Ted talked about that, more amazing series, more amazing games in the fullness of time, that will get those folks ultimately to convert over to members as well.

但我們也會看到這樣一種情況，在觀眾滲透率較高的市場，例如您提到的美國，雖然有些人不會轉化成會員，但他們基本上代表了我們可以透過改進產品來吸引的一群觀眾，正如 Ted 談到的，更多精彩的電影、更多精彩的電視劇、更多精彩的遊戲，隨著時間的推移，這些最終也會讓這些人轉化為會員。

And then just also going back to like advertising, what are the advertising features that you are most excited about?

然後回到廣告話題，您最感興趣的廣告功能是什麼？

Well, again, we're sort of in this mode where there's -- what I'm super excited about it, and then there's the work that we really need to do for the business, which I'm also excited with that because it's just about how we get to be bigger. So there's sort of the brass tacks pieces, which are a lot about measurement: verification, targeting, expanding the ways for advertisers to buy. So I'm excited from a sort of immediacy of business returns for those pieces.

嗯，再說一次，我們處於這種模式，我對此感到非常興奮，然後我們真正需要為業務做些工作，我對此也感到興奮，因為這只是關於我們如何變得更大。因此，有一些實質的內容，而且很多都是關於測量的：驗證、定位、擴大廣告商的購買方式。因此，我對這些作品能立即帶來的商業回報感到興奮。

But then when you think about like from a technology and product experience perspective, what am I excited about there, that's again where I think we have an opportunity to bring the specific characteristics of a premium, fully addressable, fully targetable, fully deterministic ad streaming system to this world. And so that means that we can do a whole range of things in terms of how we flight creatives from brands associated with certain shows and things about how we tailor the user experience to be specific to what the user needs in a moment rather than having a one-size-fits-all set of rules in terms of how we flight ads.

但是當你從技術和產品體驗的角度來思考時，我對此感到興奮的是什麼，我認為這就是我們有機會將優質、完全可尋址、完全可定位、完全確定性的廣告流系統的具體特徵帶到這個世界的地方。這意味著我們可以做一系列的事情，例如如何投放與特定節目相關的品牌的創意，以及如何根據用戶的特定需求自訂用戶體驗，而不是在投放廣告方面製定一刀切的規則。

So there's just a whole amazing line of innovation that we can go after, and we'll be going after for, frankly, for years. And we don't even know what all those things are because, mostly, we'll be working with advertisers and members to try things and then let -- than then tell us what's working and what's not.

因此，我們可以追求一系列令人驚嘆的創新，坦白說，我們將追求這些創新很多年。我們甚至不知道所有這些事情是什麼，因為大多數情況下，我們會與廣告商和會員合作嘗試一些事情，然後讓他們告訴我們什麼有效，什麼無效。

What do you consider the walk phase?

您認為步行階段是什麼？

Well, I think we're sort of getting into the walk phase, and that's probably a combination of things. One is scale. Obviously, scale is relevant in the business. So we're getting to a certain size of scale that shifts how advertisers think about us. Part of it is the technical features that advertisers -- that face advertisers. So that's very much along the lines of those measurement: verification, targeting the programmatic buying capability. That's a component of it. So those, I think, really constitutes -- I'd characterize that we're really -- we're basically getting into that middle phase of growth. And we've got a lot of work, frankly, to do in that before we get to the run phase.

嗯，我認為我們正進入步行階段，這可能是多種因素共同作用的結果。一是規模。顯然，規模對於業務至關重要。因此，我們的規模已經達到了一定程度，從而改變了廣告商對我們的看法。其中一部分是廣告商面臨的技術特性。所以這與那些測量方法非常相似：驗證，針對程序化購買能力。這是其中的一個組成部分。所以，我認為，這些確實構成了——我認為我們確實——我們基本上進入了成長的中間階段。坦白說，在進入運行階段之前，我們還有很多工作要做。

Yes. We talked about it's a multiyear build and a gradual build and crawl, walk, run. And we're only a couple of quarters into this. So I don't know, Greg, if you would agree, but I would hope we're in the walk phase by the end of the year and into next year. But I think this is a year of getting from crawl to walk.

是的。我們談到這是一個多年的建設過程，是一個逐步建設的過程，包括爬行、行走和奔跑。而我們才剛開始這個工作幾個季度。所以，格雷格，我不知道你是否同意，但我希望我們在今年年底和明年能夠進入步行階段。但我認為這是我們從爬行到散步的一年。

Yes. That sounds right.

是的。聽起來不錯。

And then I just wanted to clarify something, Spence. I think you said this is a 50% margin. I mean, typically, advertising could be as high as 80% or 85% margins. Is that -- do you expect to build up to that? Or do you think it's really just a 50%-plus business?

然後我只是想澄清一些事情，斯賓塞。我認為您說的是 50% 的利潤率。我的意思是，通常廣告的利潤率可以高達 80% 或 85%。那是——您希望實現這一點嗎？或者您認為這實際上只是一項 50% 以上的業務？

Well, I put plus in there. So I said at least 50%, and it was really just to highlight the fact that we're still in start-up mode of this business and so leaning a little conservative. But yes, our expectations over time is that it would be meaningfully over 50%. But I don't want to give a specific number yet.

嗯，我把加號放在那裡。所以我說至少 50%，這實際上只是為了強調我們仍處於這項業務的起步模式，因此傾向於有點保守。但是的，我們預計隨著時間的推移，這一比例將顯著超過 50%。但我還不想給具體的數字。

Okay. Moving on to gaming, can you give us some data points on engagement and what you're seeing on retention?

好的。說到遊戲，您能否提供我們一些關於參與度和保留率的數據點？

Yes, I'm not going to give you those specific points but let me just review sort of where we're at more broadly. We've got 55 games out to date. We've got 40 more in the queue for this year. There's very exciting games. If you want to try a few out, I'd recommend Terra Nil. That's a reverse city builder, sort of a twist on that genre. You've got Mighty Quest launching today. Our first new game from an internal studio, which is OXENFREE II, is coming later this year.

是的，我不會給你那些具體的觀點，但讓我更廣泛地回顧我們所處的位置。到目前為止我們已經推出了 55 場比賽。今年我們還有 40 多人排隊。有非常精彩的比賽。如果您想嘗試一些，我推薦 Terra Nil。這是一個反向城市建設遊戲，是該類型的變體。今天您將看到 Mighty Quest 的啟動。我們內部工作室推出的第一款新遊戲《OXENFREE II》將於今年稍後推出。

So you can sort of see it build into a combination of licensing and now layering in internally-developed games into that. And it's really -- it's following a trajectory that we've seen before, I would say, on these other new content categories that we've added if you think about film, and you heard folks here talk about sort of that film progress or nonfiction or international, where we sort of build into this over a multiyear period.

因此，您可以看到它構建為許可的組合，並將內部開發的遊戲分層融入其中。我想說的是，它確實遵循了我們之前看到的軌跡，在我們添加的其他新內容類別中，如果你想想電影，你會聽到這裡的人們談論電影的進展或非小說或國際，我們在多年的時間裡逐漸形成了這種趨勢。

And to reinforce, you mentioned those metrics. I mean, the fundamental goal here, obviously, is to give our members a new entertainment modality and more ways to enjoy incredible universes and deepen their fandom. And we do that with an effort to drive the primary metrics we have on the consumer-facing side, which is engagement with the service, which leads to retention, and incredible stories that people are talking about, games that are must-play games, that create buzz off the service and motivate people to sign up.

為了強調，您提到了這些指標。我的意思是，這裡的根本目標顯然是為我們的會員提供一種新的娛樂模式和更多方式來享受不可思議的宇宙並加深他們的粉絲群。我們這樣做是為了努力推動面向消費者的主要指標，即對服務的參與度，這可以帶來保留，以及人們正在談論的令人難以置信的故事，必玩的遊戲，為服務帶來轟動並激勵人們註冊。

Are there plans to directly monetize games, for example, advertising or licensing IP to game developers?

是否有計劃直接將遊戲貨幣化，例如向遊戲開發商投放廣告或授權 IP？

Not currently. So we think that we're very consistent with what we've done in other parts of the business. The best thing for us to do is really focus on the core initiative, which, for us right now, is how do we bring games and games based on our IP to our members, to fans of that IP directly. And also, we believe that we want to have a differentiated gaming experience. And part of that is giving game creators the ability to think about building games purely from the perspective of player enjoyment and not having to worry about other forms of monetization, whether it be ads or in-game payment.

目前沒有。因此我們認為我們的做法與我們在其他業務領域的做法非常一致。對我們來說，最好的事情就是真正專注於核心計劃，對我們來說，現在是如何將遊戲和基於我們的 IP 的遊戲直接帶給我們的會員和該 IP 的粉絲。而且，我們相信我們想要擁有差異化的遊戲體驗。其中一部分是讓遊戲創作者能夠純粹從玩家享受的角度來思考遊戲的製作，而不必擔心其他形式的貨幣化，無論是廣告還是遊戲內支付。

So maybe turning to India, which is one of the biggest global markets and one of the fastest-growing markets really in the world right now. Spence, you mentioned the pricing change in '21. And Ted, you recently said at a panel earlier in the year, I think you were in India, that it's your fastest growing market. And you've given the statistics engagement of 30%, revenue of 24%. But I think, Ted, you said that you're increasing your local originals from 28 last year. Can you just talk a little bit about this market? Like, what are your longer-term plans? Is it actually profitable? Or is this something that we -- where we can see a real change in contribution?

因此，也許可以轉向印度，它是目前全球最大的市場之一，也是世界上成長最快的市場之一。史賓塞，您提到了 21 年的價格變動。泰德，您在今年早些時候的一次小組討論中說過，我認為您在印度，這是您成長最快的市場。您給出的統計數據是參與度為 30%，收入為 24%。但泰德，我想你說過，你們會將本地原創作品的數量從去年的 28 部增加。能簡單談談這個市場嗎？例如，你的長期計畫是什麼？它真的有利可圖嗎？或者這是我們可以看到貢獻真正改變的地方嗎？

Look, I think what we've talked about earlier, when we get the pricing a little better, more suited to the market, you can see that we can grow revenue and therefore -- and we grow engagement. We have to get the content that people just really flip out for. We've seen a steady improvement in that quarter-over-quarter, both in our films and our series. Rana Naidu now is a great show that we just -- that people are loving all over the country, and it causes a great deal of excitement for the service.

看，我想我們之前已經討論過了，當我們的定價更好一些，更適合市場時，你可以看到我們可以增加收入，因此 - 我們也可以增加參與度。我們必須獲得人們真正渴望的內容。我們看到，無論是電影還是電視劇，其季度環比都有穩步提升。 Rana Naidu 是一部非常出色的電視劇，深受全國各地觀眾的喜愛，也為這部電視劇的播出帶來了極大的熱度。

Now again, we got to get the pricing and the payment methods right. India is a big prize because it's an enormous population of entertainment-loving people and we've got to have the product that they love. And it's a product that they -- that you can do business with them together. So we've got -- we're doing the creative part and we're getting the pricing better, and there's always lots of promise to continue to grow in India.

現在，我們必須再次確定正確的定價和付款方式。印度是我們的目標市場，因為那裡有大量熱愛娛樂的人口，我們必須推出他們喜愛的產品。這是他們的產品——你可以與他們一起做生意。所以，我們正在做創意部分，我們正在獲得更好的定價，我們一直有很多希望在印度繼續成長。

It is a very specific market in terms of they like local content. But also you're seeing their local content is traveling more than ever. This was an incredible year. I think what you may be referring to, Jessica, that I was talking about, movies like RRR, which did business all over the world. And Gangubai was this really fantastic film that was in the hunt for the -- for Best Foreign Language feature. So you look at all these things and you say, well, that -- as the content opportunity continues to scale and our ability to access the market and as well those audiences continues to grow, we can do quite well in India. We're a long ways from that. We're still investing against it, and I think that we'll ultimately do great in India.

就他們喜歡本地內容而言，這是一個非常特別的市場。但你也會發現他們的在地內容傳播得比以往更廣泛。這是令人難以置信的一年。潔西卡，我想你可能指的是我所說的，像《RRR》這樣的電影，它在世界各地都有票房。 《甘古巴》是一部非常精彩的電影，它正在角逐最佳外語片獎。所以你看看所有這些事情，然後你會說，好吧，隨著內容機會的不斷擴大以及我們進入市場的能力以及受眾的不斷增長，我們可以在印度做得很好。我們距離這個目標還很遠。我們仍在對此進行投資，我相信我們最終會在印度取得巨大成功。

Jessica, we have time for 2 last questions, please.

傑西卡，我們還有時間回答最後兩個問題。

Okay. So moving on to like accelerated revenue and products, can you give us an outlook or an update on -- just when you're seeing -- what your expectations are for consumer products? I mean you announced the Lacoste collaboration for clothing on your 8 most iconic shows. But you also have other collaborations. So I know -- it just seems like an area that, now that you're building up your own content, seems to provide incremental opportunity.

好的。那麼，繼續談論加速收入和產品，您能否向我們介紹一下前景或更新情況——您對消費產品的期望是什麼？我的意思是，您在您最具代表性的 8 場秀中宣布了與 Lacoste 合作的服裝。但您還有其他合作。所以我知道——這似乎是一個領域，現在您正在建立自己的內容，似乎可以提供增量機會。

Yes. We continue to grow it. The primary driver for our consumer products business is to build and deepen fandom. It does drive some revenue. But in general, we're really looking for those opportunities to help fans connect with their favorite shows, their favorite films, their favorite talent, by wearing the shirt or carrying the notebook and other ways that people really like to express their fandom.

是的。我們將繼續發展它。我們消費品業務的主要驅動力是建立和深化粉絲群。它確實帶來了一些收入。但總的來說，我們確實在尋找機會幫助粉絲與他們最喜歡的節目、他們最喜歡的電影、他們最喜歡的才藝建立聯繫，透過穿著 T 卹或攜帶筆記本以及人們真正喜歡表達粉絲情感的其他方式。

And also through these very successful live experiences, the Bridgerton experience or the Stranger Things experiences that travel around the world, we're super excited about all of them. And you see us stepping into even a newer one with the Stranger Things stage show. And there's all kinds of amazing stuff coming in that world. But keep in mind that it's mostly to build fandom in a way that can drive revenue but mostly it strengthens the core of the business.

而且透過這些非常成功的現場體驗，《布里奇頓》體驗或《怪奇物語》在世界各地巡迴演出的體驗，我們對所有這些都感到非常興奮。隨著《怪奇物語》舞台劇的上演，你會看到我們踏入了一個更新的世界。那個世界裡有各種令人驚奇的事發生。但請記住，這主要是為了以一種可以增加收入的方式建立粉絲群，但更重要的是加強業務的核心。

Great. I guess one last one, so just a follow-up on password sharing. In the markets where you've rolled out password sharing, have you seen any movement between the tiers? Like, for example, a household that has a premium subscription, are they going to 2 standards or anything like that?

偉大的。我想這是最後一個了，所以只是對密碼共享的後續跟進。在您推出密碼共享的市場中，您是否看過各個層級之間的任何變化？比如說，一個擁有高級訂閱的家庭，他們會採用 2 個標準或類似的標準嗎？

Yes. We see some of those effects, right? And we know that in especially price-sensitive markets, right, so this is also a situation which is very different market by market, but in some price-sensitive markets, consumers essentially got to a practical or informal pricing structure by subscribing to premium and then sharing us out and then, oftentimes, actually having people pay for a fraction of that from -- as they're sharing it.

是的。我們看到了一些影響，對嗎？我們知道，在價格特別敏感的市場中，情況也因市場而異，但在某些價格敏感的市場中，消費者基本上通過訂購高級版然後與我們分享，從而獲得實用或非正式的定價結構，而且很多時候，實際上人們只需支付其中的一小部分費用 - 因為他們正在分享。

So associated with that, we see some of that being shifted off of those plans and having those people sign up for individual plans as we rationalize that structure, implement the changes that prevent password sharing and also have them be able to use things like extra member or, in countries where it's relevant, the ads plan as a new entry-level price. I think you're going to see some of that sorting.

因此，與此相關，我們看到其中一些內容被從這些計劃中轉移出來，並讓這些人註冊個人計劃，因為我們合理化了該結構，實施了防止密碼共享的更改，並且還讓他們能夠使用額外會員之類的東西，或者在相關的國家/地區，將廣告計劃作為新的入門級價格。我想你會看到一些這樣的排序。

And again, we think this really -- it's better for the business, ultimately, it sets us up structurally to have more members, to have a one-to-one relationship with those members, to have all the systems that we have work more correctly, to have more transparent sort of pricing connections with those different members on the different plans. So we're excited about getting through that point. But again, I would characterize this as a very country-specific kind of approach where some countries respond that way and other countries really wasn't about that. It was much more about casual sharing.

而且，我們認為這確實對業務更有利，最終，它從結構上使我們擁有更多的會員，與這些會員建立一對一的關係，使我們所有的系統運行得更正確，與不同計劃的不同會員建立更透明的定價聯繫。因此我們很高興能夠實現這一點。但我再次強調，這是針對特定國家的做法，有些國家會採取這種回應，而有些國家則不會。這更多的是一種隨意的分享。

And Jessica, if I could just add really quick, the way that we win over those sharers and the way that we grow the ad plan is to have the content that people cannot live without. And let me just tell you real quick before we get to the close here how we're doing on that front. Because this quarter alone, this past Q1, Night Agent became our sixth biggest original season of television in our history, incredible success.

傑西卡，如果我可以快速補充一下，我們贏得分享者青睞的方法和我們擴大廣告計劃的方法就是提供人們生活中離不開的內容。在我們結束之前，請容許我快速告訴你們我們在這方面做得如何。因為光是這個季度，也就是剛過去的第一季度，《夜間特工》就成為了我們歷史上第六大原創電視劇季，取得了令人難以置信的成功。

We saw returning seasons of You for Season 4, a third season of Outer Banks, a second season of Ginny & Georgia, all shows that have grown from their original first seasons. And also shows that have created incredible new stars like Chase Stokes and Antonia Gentry and Madelyn Cline and Penn Badgley, who now have huge fan bases around the world. We saw The Glory, which is from Korea, our fourth biggest non-English launch ever. We had incredible big films with big stars, like You People, Your Place or Mine, Murder Mystery 2, did really well in the multi-cam comedy space with The '90s Show, and unscripted with Full Swing.

我們看到了《你》第四季的回歸、《外灘探秘》第三季、《金妮與喬治亞》第二季的回歸，這些影集都比第一季有了進步。這些節目還培養出了蔡斯·斯托克斯 (Chase Stokes)、安東尼婭·金特里 (Antonia Gentry)、瑪德琳·克萊恩 (Madelyn Cline) 和佩恩·拜德格雷 (Penn Badgley) 等令人難以置信的新星，他們現在在世界各地擁有大量粉絲。我們看到了來自韓國的《榮耀》，這是我們有史以來第四大非英語發行作品。我們擁有大牌明星出演的精彩大片，例如《你們這些人》、《你地還是我地》、《謀殺疑雲 2》，在多鏡頭喜劇領域表現出色的《90 年代秀》以及非劇本類電影《全力以赴》。

So this past quarter, we were super thrilled with the results of the content. And we have to keep that up in order to win over those sharing accounts and also to grow that ad-supported tier.

因此，在過去的一個季度中，我們對內容的結果感到非常興奮。我們必須繼續這樣做，以贏得那些共享帳戶，並擴大廣告支援層。

You missed Beef. You didn't say that. It's incredible.

你錯過了牛肉。你沒這麼說。這真是令人難以置信。

I missed a bunch. Jessica, the reason why when we talk about our content, it sometimes sounds like a laundry list. It's a long list that really illustrates how hard this is to do, which is to hit on the quality and the breadth of the entertainment that people really want. And everyone has remarkably varied taste that you have to have very different things for different fans, and that's what we're good at doing at scale.

我錯過了很多。傑西卡，這就是為什麼當我們談論我們的內容時，它有時聽起來就像一份洗衣清單。這一長串清單確實說明了做到這一點有多麼困難，即滿足人們真正想要的娛樂的品質和廣度。每個人的品味都非常不同，所以你必須為不同的粉絲提供非常不同的東西，而這正是我們擅長大規模做的事情。

And plus 1 to Beef. It's been an amazing time.

並且牛肉加 1。這是一段令人驚奇的時光。

Well, that too. By the way, that's new this quarter, and it has kicked off. And it's having -- it's off to a tremendous start. And it's, again, another example of critical acclaim, likely to do well in awards season, we hope, but loved by fans.

嗯，那也是。順便說一句，這是本季度的新內容，並且已經開始了。而且它已經有了一個很好的開始。這又是一部獲得評論界一致好評的作品，我們希望它能在頒獎季取得好成績，並受到粉絲們的喜愛。

Great. And with that...

偉大的。就這樣...

Ted, did you want to take us home?

泰德，你想帶我們回家嗎？

Yes. Just want to tell you real quick, we're really pleased with the quarter. 2023 is off to a good start. Netflix is the leading streaming service in terms of engagement, revenue and profits. And streaming is the future of entertainment at home. So on engagement, just yesterday, Nielsen released data that in Q1 of '23, Netflix was the most watched of any broadcaster or streamer in the U.S. by a pretty nice margin. We have -- and we have plenty of room to grow. Even with that tremendous amount of watching, we're about 10% of total TV time in our most established markets like the U.S. and the U.K.

是的。我只想快速地告訴你，我們對本季的表現非常滿意。 2023年開局良好。 Netflix 在參與度、收入和利潤方面是領先的串流媒體服務。串流媒體是家庭娛樂的未來。就參與度而言，就在昨天，尼爾森發布的數據顯示，在 2023 年第一季度，Netflix 是美國收視率最高的廣播公司或串流媒體公司，而且領先優勢相當大。我們有──而且我們還有足夠的成長空間。即使收視率如此之高，我們的節目在美國和英國等最成熟的市場中也只佔電視總播放時間的 10% 左右。

On revenue and profit, we're growing, not as fast as we believe we can, not as fast as we'd want to, but we are growing and we are profitable. And we have a clear path to reaccelerate growth in both revenue and profit, and we're executing on it. You'll see a broader rollout of paid sharing in Q2 and we're going to continue to grow that ad business. And we also grow -- are aiming to continue to grow free cash flow. As we said this year, we're going to generate about $3.5 billion in free cash and on increased margins.

就收入和利潤而言，我們正在成長，雖然沒有達到我們認為的那麼快，也沒有達到我們希望的那麼快，但我們正在成長並且獲利。我們有明確的途徑來重新加速收入和利潤的成長，並且我們正在執行它。您將在第二季度看到付費共享的更廣泛推廣，我們將繼續發展該廣告業務。我們也在成長——我們的目標是繼續增加自由現金流。正如我們今年所說的那樣，我們將產生約 35 億美元的自由現金並提高利潤率。

So remember that this account sharing initiative helps us have a larger base of potential paying members that we can continue to serve and grow Netflix long term, and that's why we've been so focused on execution. So the variety and quality of our much-watch movies, our must-watch TV shows, our must-play games, we're going to keep working to improve discovery, to have buzzier and more creative marketing because, when we deliver for our members, we deliver as a business. And we keep doing that by doing it just a bit better and a bit faster than our competition every month, every quarter and every year. Thanks, Jessica.

所以請記住，這個帳戶共享計劃可以幫助我們擁有更大的潛在付費會員基礎，以便我們可以繼續為 Netflix 提供長期服務和發展，這就是我們如此專注於執行的原因。因此，我們將繼續努力提高我們最受歡迎的電影、必看的電視節目、必玩的遊戲的多樣性和質量，以進行更熱門、更有創意的營銷，因為當我們為會員提供服務時，我們就是作為一項業務提供服務。我們將繼續這樣做，每個月、每季、每年都比我們的競爭對手做得更好、更快。謝謝，傑西卡。