(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.

大家好，歡迎收看 Netflix 2023 年第一季度收益訪談。我是財務、投資者關係和企業發展副總裁 Spencer Wang。今天加入我的是聯席首席執行官 Ted Sarandos 和 Greg Peters；首席財務官 Spence Neumann。我們本季度的採訪者是 Jessica Reif Ehrlich。

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

提醒一下，我們將做出前瞻性陳述，實際結果可能會有所不同。

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

有了這個，傑西卡，我將把它交給你來回答你的第一個問題。

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?

那麼讓我們從泰德和格雷格開始。你們一起工作了 15 年多，但這是你們作為聯席首席執行官的第一個季度。你有什麼要分享的亮點嗎？

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.

好吧，傑西卡，正如你所指出的，這是我們作為聯席首席執行官在一起工作的第一個季度，但已經合作了 15 年。在這 15 年裡，你們建立了很多尊重和相互信任，幫助你們度過了一些艱難時期。不要因為沒有戲劇性而讓你失望，但這對我們來說幾乎是一個一切如常的季度，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一樣的信任、尊重和速記。我知道格雷格也這樣做了。因此，這並不像人們想像的那麼多事，而且擁有一位聯席 CEO 來共同解決重大問題確實令人難以置信和奇妙的專業刺激。因此，我認為我們將回顧里德在 Netflix 令人難以置信的 25 年，其中一項偉大的成就，就是促進這一非常非常平穩的過渡和繼任。

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。所以你們最近在 116 個國家/地區降低了價格。這是一種類似於您 2021 年在印度所做的更本地化的方法，還是推動成功引入密碼共享和廣告層的動力？

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.

如果你願意，我可以拿這個，傑西卡。這實際上是關於，我們在過去幾個季度討論了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，它幾乎是全面的，有點粗略的方法，而且在我們的定價方面並不是特別複雜。因此，將此視為我們在更好的市場契合度、產品市場契合度、定價契合度方面的下一步發展，目的是提高我們在這些市場的滲透率以及更好的中長期收入。對我們的會員更好，對我們的業務也更好。

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.

但只想強調，這肯定不是短期內任何時候對我們業務的實質性影響。所以它有很多國家，但它只占我們收入的不到 5%。因此，從長遠來看，這有望使我們受益。我們可以舉一個成功的例子，就像我們在印度看到的那樣。所以去年 2021 年 12 月，我們將印度的價格降低了 20% 到 60%。我們看到過去一年的參與度增長了約 30%，付費淨增加量增長很快。還有收入，外匯中性收入增長實際上從前一年的 19% 加速到去年的 24%。所以這就是 - 我們並不是說每個市場都會像那樣發揮作用，但這就是成功的樣子。

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。讓我們繼續密碼共享。您在第一季度的新市場發布、流失和轉化中看到了什麼？你能給我們任何關於你在加拿大看到的東西的具體顏色嗎，無論是在新潛艇還是附加設施方面？

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。我會拿那個。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做得好並且盡可能深思熟慮。最後一次在國家/地區的推出進展順利，也許最重要的是，與我們在拉丁美洲看到的方向一致。所以只是為了提醒人們這看起來很像價格上漲，我們看到了最初的取消反應。然後我們以此為基礎，在會員和收入方面，因為藉款人註冊了他們自己的 Netflix 帳戶，現有會員為他們想要與之共享的人們購買了額外的會員設施。

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.

所以首先，在這些新國家看到一致的結果是一個強有力的驗證，因為它們具有不同的市場特徵，彼此不同，也不同於最初的拉丁美洲推廣國家。因此，為了取得積極的成果，你提到了加拿大，相對於推出前，我們現在處於積極的成員和積極的收入地位。因此，這是一個非常有力的證據，表明我們有一種方法可以應用於具有不同市場特徵的許多不同國家，包括我們最大的收入國家。

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。我們實際上考慮過這個選項。但我們也從最後一組發布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，比如無縫訪問 Netflix，因為他們一直在旅途中或旅行時使用它以及確保我們為他們提供了良好的工具來管理對其帳戶和設備的訪問。

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.

因此，總而言之，我們認為，根據這些結果，最好多花一點時間，吸收這些經驗教訓，並儘可能讓成員順利過渡。而且我們認為這種方法也最能服務於長期業務目標。所以我們將在第二季度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，節奏，你在第二季度說了美國。世界其他地方呢？還有——你能告訴我們你對定價的看法嗎？你是否更願意讓當前的借款人成為訂閱者或附加組件？

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，我們在第二季度進行的發布是一次非常廣泛的發布。它包括美國，包括許多許多其他國家。我的意思是我們保留對一些我們認為有不同方法的國家的權利，但我想說的是我們大多數國家。當然，當你從收入的角度考慮時，絕大多數將在第二季度推出。

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.

你在定價方面提到過，我們將逐個市場地進行研究。但很明顯，我們在最後這些將在拉丁美洲進行測試的部署中測試了不同的定價。這讓你了解我們如何考慮什麼是最優定價，尤其是在更富裕的國家，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.

然後就偏好而言，我們要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，可以在他們認為這對他們或用例來說是正確的解決方案的地方分拆到借款人帳戶，這些用例是合法的用例，其中有人想基本上為家庭成員或類似的東西購買 Netflix，我們希望那個額外的成員也到位。所以我們真的沒有，我想說，強烈的偏好。除了使用定價來滿足這些客戶選擇目標以及考慮長期收入優化之外，我們並沒有試圖從一個角度出發。

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?

還有一個關於密碼共享的，是否有任何增量成本？看起來內容分發、營銷已經在你的開支中了。那麼增量保證金是100%嗎？或者是否有計劃將部分收入進行再投資，使其不會全部流出？

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，Spencer。你要拿這個嗎？

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.

我想說真的沒有——除了一般的資源分配之外，我不會說有真正的增量成本。但當然，我們總是想再投資。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，我們正在尋求重新加速收入增長。這就是我們現在所走的道路。

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，我們想要一種平衡，逐漸增加利潤。你在我們的指南中看到了這一點，我們希望將全年的利潤率略微提高到 18% 到 20% 的範圍，而不是去年略低於 18%，但要與我們面前的大獎保持平衡。因此，為我們的會員重新投資越來越多的娛樂活動，並推動更多娛樂活動的飛輪，為會員帶來更多價值，最終隨著時間的推移，越來越多的會員，然後建立一個非常非常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?

那麼讓我們繼續做廣告。 Netflix 似乎在我們稱之為電視廣告方面擁有巨大優勢。我的意思是，從傳統的角度來看，您幾乎沒有什麼可失去的，而在 AVOD 平台上可以獲得一切。考慮到有限的廣告負載、優質的視頻內容、您巨大的影響力和與一些相當難以觸及的人口統計數據的互動，以及從線性到流媒體的持續大規模轉變，您的位置令人羨慕。話雖如此，您在投放廣告時似乎非常小心。你能告訴我們你迄今為止的主要經驗教訓以及迄今為止成長的煩惱是什麼嗎？

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。但我們一直期待，坦率地說，我們繼續期待，這是一個漸進的構建。它遵循一個非常相似的過程，我們已經在我們進入的許多其他領域使用過，我們邊走邊學，我們迭代。我們發現，隨著我們的成長和學習，採用這種方法基本上會產生很好的長期成果。

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.

所以我想說我們今天所處的位置，我們還有很多工作要做 - 繼續開發支持廣告商的功能。我們正在推出諸如測量和驗證之類的東西，但我們有一個更大、更長的路線圖，我們必須去那裡做。我們正在與 Microsoft 合作提高我們的上市和銷售能力。我們有很多好的工作要做。其中一些是艱苦的工作。這是一個國家一個國家。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，廣告商可以通過更多方式進行購買。

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方面。因此，我們正在向廣告計劃中添加更多功能。我們正在為會員提供更好的體驗。通過這樣的過程，我們希望這些迭代能夠在一段時間內真正累積起來，成為一個重要的、高度重要的項目和高利潤、高利潤的業務。但是還有很多事情要做，我們正在努力保持快節奏，但也要考慮周全。

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?

有很多關於您的廣告技術能力建設的新聞報導。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。我想說我們有雄心在這個領域進行創新。很多創新都在考慮在會員體驗方面不要放之四海而皆準，並考慮什麼時候投放廣告的合適時間，諸如此類。但我還要說的是，我們現在所處的模式非常重要，我們正在做大量的工作，這些工作正在沿著一條成熟的道路建立一個大企業，回到你考慮驗證、測量等的時候，我們在程序化方面所做的事情。我想說，這些都是相對簡單的事情。所以我們正在做的很多工作都是在那個領域做的。

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

然後就增量成本而言，Spence，你想插話嗎？

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。我想說的是一般性的，傑西卡，我們嘗試，在所有這一切中，首先，我們一直 - 我們一直在談論這種爬行，四處走動，格雷格提到的，非常周到和有條不紊地討論我們如何“重新建立業務，以及它如何影響我們的整體財務、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。這就是我們正在建設的目標。所以是的，這有一些成本，無論是在微軟合作夥伴關係的成本方面，還是在某種程度上構建我們的能力、人員以及技術能力方面的成本，但都非常易於管理。

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.

我們還談到了一些內容成本，因為我們繼續有點——我們在上個季度提高了計劃的內容平價水平，這很好。所以它大約是收看平價的 95% 以上，這又是一個很大的進步。所以我們——我們一直在前進，但我們認為這一切都在一個水平上，我們認為這不僅對我們的會員有更好的價格選擇，而且對我們的業務也更好。我們認為我們可以做到，並且正在這樣做，我想說的是，不過分具體，將其視為對業務的 50% 或更多增量利潤貢獻。

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?

當你提前來到 5 月的廣告時，也就是幾週後，聽起來你現在已經達到了這裡的標準。你有計劃將它引入你的高級層嗎？當你推出時，你期望在平台上有多少規模，即有多少訂閱者——當秋季的前期承諾到來時，你將擁有多少規模？

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。所以關於你的第一個問題，我們一直在考慮並努力改進計劃結構，即定價。當我們這樣做時，我們有兩個目標。一是我們希望讓范圍廣泛的消費者，並且理想情況下，越來越多的消費者能夠以一系列具有適當相應功能的價格訪問我們的精彩故事。 .

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廣告計劃的經濟性，基於我們在標準版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，無論是在視頻分辨率還是視頻質量方面和並發流的數量，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，我們已經——我們將一如既往地繼續評估。您之前已經看到我們在該領域採取行動。但我們今天沒有什麼可以補充的了。

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.

然後就規模而言，顯然，我們正在增長。我們每天都在成長，我們都在尋求繼續成長，但我們不會在此時宣布一個目標或我們對前期的預期、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，然後我會繼續。但是您能否提供您目前所見的 ARPU 細節？因為你在發布中提到收入實際上高於標準。所以到目前為止，一切都很好。

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，我可以加入。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學感到滿意。它高於我們的總體基本計劃。正如你所說，在美國，它實際上比我們的標準計劃還要高。所以我們真的很喜歡我們走的路，我們擁有的軌跡。正如我所說，這是一種雙贏，因為它對我們的會員來說是一個價格較低的選擇，而且它既是增量收入，又是業務的增量利潤。所以它使業務更強大，當然，我們可以將其再投資到越來越多的娛樂活動中。

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。但是，現在還早。傑西卡，我們只做了幾個季度，所以我們會變得更好，正如格雷格所說，更好的定位和衡量，更好的工具和廣告商的購買選擇。因此，我們認為所有這些實際上都將以此為基礎，以便我們加強和加強我們正在構建的那種優質 CPM 廣告網絡。

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，也許可以稍微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。您目前的長期利潤增長或預期是什麼？在 COVID 之前，您曾表示在幾年內每年提高 300 個基點。你能提供任何更新嗎？

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.

我們不是——我們從來沒有為我們的利潤率提供長期指導。但我想說我們已經處在一個我們對我們擁有的業務感覺良好的地方。這是一個非常 - 這是一個很棒的商業模式。該業務規模龐大，收入超過 300 億美元，利潤率穩健，利潤率不斷增長，自由現金流不斷增長。所以這是一個起點。

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，我們正在努力平衡，因為我們重新加速收入，提高這些利潤率，同時重新投資於業務，回到那個會員群，回到那個大獎，我們覺得我們是如此今天小我們在最近的財報電話會議上談過，我們認為，我們代表了我們今天參與的娛樂領域直接消費者支出的大約 5%，主要是電影、電視和遊戲。

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.

當我們考慮可用的會員人數時，那些 10 億多寬帶家庭，即使在今天，大約有 4.5 億，其中 5 億是聯網電視家庭，而我們今天只有 2.3 億左右的付費會員，大致上，正確的，這就是為什麼我們如此專注於解決付費共享問題，然後只是讓我們的業務和我們的 - 我們每天為服務帶來更好的價值以吸引更多會員。所以這真的是我們正在努力的方向。

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.

然後從長遠來看，我們只是 - 我們認為自己不會接近近期上限。那裡有很多代理。傳統上，規模化的娛樂服務和網絡遠高於我們大約 20% 的營業利潤率。所以我們相信我們還有很長的路要走，我們有一些先天優勢。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型。所以我們相信我們還有很長的路要走，但現在還沒有真正提出更具體的指導。

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，如果我可以添加一個例子，業務規模是全球性的，那就是我們每一個重要的內容勝利都是從本地勝利開始的。然後成功，他們推出並獲得區域性，然後他們到達最遠的地方，然後他們獲得全球性，這是巨大的成功。當我們做對時，所有額外的觀眾都不會付出邊際成本。

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，通過推動——創造那些推動當地業務增長的故事，它為人們提供了可以愛上的內容，而且我們也有可能在世界任何地方獲得巨大的成功。這確實是我們經營業務的規模。回到 Spence 所說的潛力——甚至可以將利潤率提高到我們今天的水平之外，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？我的意思是你在想什麼——你在第一季度宣布了 120 萬美元的回購。但相對於你的自由現金流和令人難以置信的資產負債表，你有很大的能力。那麼，您能否告訴我們您如何看待長期資本回報？

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

當然。斯賓塞，你要拿那個嗎？

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，我可以拿那個。謝謝杰西卡提出這個問題。我們很高興在第一季度達到完全投資級。所以這對公司來說是一個很好的里程碑。你是對的，我們的資本配置理念沒有改變。因此，我們的目標仍然是維持相當於大約 2 個月收入的最低現金。根據第一季度的數據，最低現金約為 54 億美元。我們在本季度結束時資產負債表上的資產負債表約為 78 億美元，因此我們確實擁有約 24 億美元的過剩現金。這就是為什麼我們在信中表示我們的股票回購將在今年加速。

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及的另一件小事是，該視頻採訪將包含前瞻性陳述，實際結果可能會有所不同。所以我確實想說，這裡有證據表明這個視頻採訪實際上沒有腳本。回到你身邊，傑西卡。

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

那麼泰德，你如何為潛在的作家罷工做準備 - 因為它有可能發生？

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，我要說的是，我們尊重作家，我們尊重 WGA，沒有他們，我們就不可能在這裡。我們不想罷工。上一次罷工對創作者來說是毀滅性的打擊。在這個行業真的很難。這對支持製作的當地經濟來說是痛苦的，對粉絲來說非常、非常、非常糟糕。因此，如果發生罷工，我們要非常努力地工作，以確保我們能夠找到公平公正的交易，這樣我們就可以避免罷工，但如果發生罷工，我們將有大量來自世界各地的即將上映的節目和電影我們可能比大多數人更好地為我們的成員服務。

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.

我們真的不希望這種情況發生，但我們不得不做最壞的打算。因此，我們確實有一個非常強大的版本可以讓我們進入很長一段時間。但需要明確的是，我們坐在談判桌前，我們將努力找到一個公平的解決方案，這樣就不會發生罷工。

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?

在罷工之後，一旦你克服了這一點，你預計未來幾年內容支出將如何變化？你有點像 170 億美元的節奏。它取決於收入增長嗎？你能告訴我們你是怎麼想的嗎？

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，這取決於收入增長。還要記住，收入的方式——或者內容支出對我們的影響，是隨著製作和交付的開始。我們仍然努力通過或我們通過或彌補那些後 COVID 閘門打開，所以這確實拋出 - 使內容花費有點笨重。我們預計將在 24 年回到大約 170 億美元的水平。當然，增長率取決於收入增長率。

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.

只是為了補充 Ted 的觀點，因為我完全同意所有這些，而且 - 但再次強調 - 前面有一個很大的機會，所以我只想強調這一點。我們不會 - 我們說我們會在幾年內平均保持在大約 170 億美元，在 2022 年到 24 年期間，但除此之外還有一個巨大的娛樂市場。因此，隨著我們重新加速收入增長，我們看到了很多機會來發展未來的觀看、參與和商業機會。所以我們希望在那裡，我們只需要融入其中。

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?

你對重新審視你的電影策略有什麼想法嗎？在戲劇作品和發行方面，你在奧斯卡金像獎上取得了巨大的成功。那麼這對你有什麼改變嗎？你最近也對這個部門進行了重組。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。他們真的在製作一些很棒的電影。正如你所指出的，奧斯卡的成功是巨大的。但比這更好的是，贏得如此大的電影也非常非常受影迷歡迎。因此，這是屢獲殊榮、廣受好評並深受粉絲歡迎的影片。甚至，就像我說的，《西線無戰事》就是這樣。木偶奇遇記當然是那個。我們為參與其中的電影感到非常自豪，因為它們受到了影迷的喜愛。所以我們對電影投資真的很滿意。當然，我們正在努力改進它，就像我們對所有電影所做的那樣。

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。我們創造了這種需求，我們通過我們的會員收集了對我們訂閱服務的需求。而且我認為擁有大的、新的、令人滿意的內容，包括第一個窗口中的故事片，可以為我們的會員帶來價值並為企業帶來價值。因此，除了嘗試繼續為我們的會員改進電影並通過深受喜愛和觀看的電影大放異彩之外，在播放方面沒有重大變化。

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，它真的傾向於我們擁有的向我們的成員提供價值的優勢。但由於我們的影響力和規模，以我們每個會員的平均收入擁有超過 2.3 億付費會員，它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部分或領域，各種各樣內容以及我們會員必看的內容和娛樂。所以它真的有點傾向於這種優勢。

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.

而且我認為在服務之間進行比較很誘人，但正如您指出的那樣，其他服務沒有那麼大的規模，Spence。他們沒有收入基礎或觀眾群來支持單一窗口，而我們甚至可以在 Netflix 上通過單一窗口支持大預算電影。

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?

您的實時策略是如何演變的？ Chris Rock 大受歡迎，但 Love Is Blind 存在一些技術問題。直播是大廣告驅動力嗎？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，你想抓住那個嗎？

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。我首先要說，我們真的很抱歉讓這麼多人失望了。我們沒有達到我們期望自己為會員服務的標準。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 3 月份的 Chris Rock 上次直播之後，當我們實施一些更改以嘗試提高直播性能時，我們只是沒有在內部測試中看到這個錯誤，因為它只有在我們放置多個系統後才會變得明顯在數百萬人試圖觀看愛情是盲目的負擔下相互交流。

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.

所以我們討厭這些事情發生，但我們會從中吸取教訓，我們會變得更好。我們確實擁有所需的基礎設施。我要說的好消息是，最終有 650 萬觀眾觀看並欣賞了該節目。然後我會把它交給特德來談談更多的戰略方面。

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。看，我們已經說過我們希望在創造性地有意義時使用現場直播，當它有助於內容本身時。所以一個會產生新聞和嗡嗡聲的重聚節目，當人們可以一起享受它時，它確實在現場播放得更好。當然，Chris Rock 單口相聲表演非常成功，因為人們非常期待他在那場演出中要說的話。所以當我們有機會做這樣的項目時，我們喜歡這樣一個事實，即我們可以選擇這樣做。

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 Greg 所說，我們非常失望無法在 Love Is Blind Reunion 上為所有想要它的人提供現場產品。但我們非常高興人們喜歡這個節目。它確實表明了對該品牌的熱愛，以及對 Netflix 上那些無腳本品牌日益增長的熱愛。其中一些將是現場直播的。而且我確實認為，有時那些以結果為導向的節目在現場直播時確實表現得更好一些，而且它們確實產生了很多對話。但請記住，就像在 Chris Rock 上一樣，大約 90% 的觀看都是在之後。但這並沒有改變它在現場發生時是一件大事的事實。

Is it a big driver of the advertising?

它是廣告的重要驅動力嗎？

We have no current -- go ahead, Greg.

我們沒有電流——去吧，格雷格。

No, go ahead, Ted. You take it.

不，繼續，特德。你拿著吧。

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

我只是說我們目前沒有在直播中投放廣告。

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，我稍後再回到那個問題。但在 3000 萬 UCAN 和 1 億多全球借款人中，從你發布的內容來看，這實際上是家庭數量。潛在訂閱或附加組件的數量是多少？我的意思是這 1 億多家庭的潛在轉化率是多少？

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.

好吧，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，從某種意義上說，他們擁有訪問 Netflix、智能電視、寬帶接入的所有技術需求，他們知道系統是如何運作的.他們以前顯然很喜歡該服務上的內容。因此話雖如此，我們看到這些借款人之間存在一定範圍的參與。

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，有些人觀看我們的節目的次數與普通付費帳戶一樣多，我想說的是，這些人轉換的可能性非常大。然後我們看到裁縫逐漸減少，而不是通過那部分人。如果你看得少得多，你最終轉化的可能性就會小得多。但即使在那種情況下，我想說這代表了一個非常重要的結構轉變，我們將在沒有定價扭曲、沒有會員扭曲的情況下與全新的成員範圍發展一對一的關係。因此，我們看到會員人數會通過這種方式增長。我們也會看到收入通過它增長。

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，在高觀眾滲透率市場，比如你提到的美國，其中一些人不會轉換，但他們基本上代表了我們可以去的一群人在改進我們的產品、更多令人驚嘆的電影之後，Ted 談到了那個、更多令人驚嘆的系列、更多令人驚嘆的遊戲在適當的時候，這將最終讓這些人也轉變為會員。

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

然後再回到喜歡廣告，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，再一次，我們有點處於這種模式——我對此非常興奮，然後是我們真正需要為業務做的工作，我也對此感到興奮，因為它是關於我們如何變得更大。所以有一些重要的事情，其中有很多是關於測量的：驗證、定位、擴展廣告商的購買方式。所以我對這些作品的商業回報的即時性感到興奮。

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考慮時，我在那裡感到興奮的是，這又是我認為我們有機會帶來優質、完全可尋址、完全可定位、完全確定的廣告流的具體特徵的地方這個世界的系統。因此，這意味著我們可以做很多事情，比如我們如何從與某些節目相關的品牌中投放創意，以及我們如何定制用戶體驗，使其特定於用戶當下的需求，而不是讓關於我們如何投放廣告的一套通用規則。

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，我們可以追求一整條令人驚嘆的創新路線，坦率地說，我們將追求多年。而且我們甚至不知道所有這些東西是什麼，因為大多數情況下，我們將與廣告商和會員合作進行嘗試，然後讓——然後告訴我們什麼有效，什麼無效。

What do you consider the walk phase?

你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.

好吧，我認為我們有點進入步行階段，這可能是多種因素的結合。一是規模。顯然，規模與業務相關。因此，我們正在達到一定規模，從而改變廣告商對我們的看法。其中一部分是廣告商面對廣告商的技術特徵。所以這非常符合這些衡量標準：驗證，針對程序化購買能力。這是它的一個組成部分。所以我認為，那些真的構成了——我認為我們真的——我們基本上進入了增長的中間階段。坦率地說，在我們進入運行階段之前，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。我們談到了它是一個多年的構建和一個漸進的構建和爬行、行走、運行。而且我們只進行了幾個季度。所以我不知道，格雷格，你是否同意，但我希望我們在今年年底和明年進入步行階段。但我認為這是從爬行到走路的一年。

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，Spence。我想你說這是 50% 的保證金。我的意思是，通常情況下，廣告的利潤率可能高達 80% 或 85%。那是——你希望達到那個水平嗎？或者你認為這真的只是一個 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.

好吧，我把加號放在那裡。所以我說至少 50%，這真的只是為了強調一個事實，即我們仍處於這項業務的啟動模式，因此有點保守。但是，是的，隨著時間的推移，我們的預期是有意義地超過 50%。但我還不想給出具體數字。

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

好的。繼續遊戲，你能給我們一些關於參與度的數據點和你在保留方面看到的嗎？

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，但讓我回顧一下我們所處的更廣泛的位置。迄今為止，我們已經推出了 55 款遊戲。今年我們還有 40 人在排隊。有非常精彩的比賽。如果你想嘗試一些，我推薦 Terra Nil。那是一個反向的城市建設者，有點像那種類型的轉折。您今天發布了 Mighty Quest。我們內部工作室的第一款新遊戲 OXENFREE II 將於今年晚些時候推出。

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.

所以你可以看到它構建了許可的組合，現在將內部開發的遊戲分層。而且它真的 - 它遵循我們之前看到的軌跡，我會說，如果你考慮電影，我們添加的這些其他新內容類別，你聽到這裡的人們談論電影的進展或非小說類或國際性的，我們在多年的時間裡對此進行了某種程度的構建。

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.

為了加強，你提到了這些指標。我的意思是，這裡的基本目標顯然是為我們的會員提供一種新的娛樂方式和更多方式來享受令人難以置信的宇宙並加深他們的粉絲。我們這樣做是為了推動我們在面向消費者方面的主要指標，即與服務的互動，這會導致保留，以及人們正在談論的令人難以置信的故事，必須玩的遊戲，這會引起服務的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?

是否有直接將游戲貨幣化的計劃，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.

不是現在。所以我們認為我們與我們在業務的其他部分所做的非常一致。對我們來說，最好的辦法就是真正專注於核心計劃，對我們來說，現在就是如何將游戲和基於我們 IP 的遊戲直接帶給我們的會員，直接帶給該 IP 的粉絲。而且，我們相信我們希望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考慮構建遊戲，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?

所以也許轉向印度，它是全球最大的市場之一，也是目前世界上增長最快的市場之一。 Spence，你提到了 21 年的定價變化。泰德，你最近在今年早些時候的一個小組會議上說，我想你在印度，這是你增長最快的市場。你已經給出了 30% 的統計參與度，24% 的收入。但我認為，泰德，你說過你正在增加你的本地原件，從去年的 28 個開始。你能談談這個市場嗎？比如，你的長期計劃是什麼？它真的有利可圖嗎？或者這是我們可以看到貢獻的真正變化的地方嗎？

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，我想我們之前談過的，當我們的定價更好一點，更適合市場時，你可以看到我們可以增加收入，因此 - 我們會增加參與度。我們必須獲得人們真正喜歡的內容。在我們的電影和系列中，我們已經看到了季度環比的穩步改善。 Rana Naidu 現在是一個很棒的節目，我們只是——人們熱愛全國各地，這讓這項服務非常興奮。

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，我們必須正確定價和支付方式。印度是一個大獎，因為它有大量熱愛娛樂的人，我們必須擁有他們喜愛的產品。這是他們的產品 - 您可以與他們一起做生意。所以我們已經 - 我們正在做創意部分並且我們正在獲得更好的定價，並且總是有很多希望在印度繼續增長。

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，這是一個非常特殊的市場。但您也會看到他們的本地內容比以往任何時候都更受歡迎。這是不可思議的一年。傑西卡，我想你可能指的是我所說的，像 RRR 這樣的電影，它在世界各地開展業務。 Gangubai 是一部非常棒的電影，正在尋找最佳外語片。所以你看看所有這些事情，你會說，好吧，隨著內容機會的不斷擴大，我們進入市場的能力以及這些觀眾的不斷增長，我們可以在印度做得很好。我們還有很長的路要走。我們仍在對其進行投資，我認為我們最終會在印度做得很好。

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

傑西卡，我們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。因此，繼續喜歡加速的收入和產品，你能給我們一個展望或更新——就在你看到的時候——你對消費產品的期望是什麼？我的意思是，您在 8 場最具標誌性的時裝秀上宣布了與 Lacoste 的服裝合作。但是你們還有其他的合作。所以我知道——現在你正在構建自己的內容，這似乎是一個提供增量機會的領域。

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體。它確實帶來了一些收入。但總的來說，我們真的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、他們最喜歡的人才聯繫起來，通過穿襯衫或攜帶筆記本以及其他人們真正喜歡的方式來表達他們的粉絲。

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.

此外，通過這些非常成功的現場體驗、布里奇頓體驗或環遊世界的怪奇物語體驗，我們對所有這些都感到非常興奮。你會看到我們通過 Stranger Things 舞台表演進入了一個更新的階段。那個世界裡有各種各樣令人驚奇的東西。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，但主要是加強業務的核心。

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。我想最後一個，所以只是密碼共享的後續行動。在您推出密碼共享的市場中，您是否看到了層級之間的任何變化？例如，一個擁有高級訂閱的家庭，他們是否要達到 2 個標准或類似的標準？

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。我們看到了其中一些影響，對嗎？我們知道，在對價格特別敏感的市場中，對，所以這也是一個因市場而異的情況，但在一些價格敏感的市場中，消費者基本上通過訂閱保費和然後分享我們，然後，通常，實際上讓人們在分享時支付其中的一小部分。

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，與此相關的是，我們看到其中一些計劃被轉移，並讓這些人註冊個人計劃，因為我們使結構合理化，實施防止密碼共享的更改，並讓他們能夠使用諸如額外會員之類的東西或者，在相關的國家/地區，廣告計劃為新的入門級價格。我想你會看到一些這樣的分類。

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.

再一次，我們認為這真的 - 這對業務更好，最終，它在結構上讓我們擁有更多的成員，與這些成員建立一對一的關係，讓我們擁有的所有系統都能更好地工作正確地，在不同的計劃中與那些不同的成員建立更透明的定價聯繫。所以我們很高興能度過這一關。但同樣，我會將此描述為一種非常針對特定國家/地區的方法，其中一些國家以這種方式回應，而其他國家實際上並非如此。更多的是關於隨意分享。

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，如果我能真正快速地補充一下，我們贏得這些分享者的方式以及我們發展廣告計劃的方式就是擁有人們離不開的內容。在我們結束之前，讓我快速告訴你我們在這方面的進展情況。因為僅在這個季度，也就是剛剛過去的第一季度，《暗夜特工》就成為了我們歷史上第六大原創電視季，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 4 季的回歸季、《外灘》的第 3 季、《金妮與喬治亞》的第 2 季，所有節目都從最初的第一季發展而來。並且還展示了創造令人難以置信的新星的節目，例如蔡斯·斯托克斯 (Chase Stokes) 和安東尼婭·金特里 (Antonia Gentry) 以及瑪德琳·克萊恩 (Madelyn Cline) 和佩恩·巴格利 (Penn Badgley)，他們現在在全球擁有龐大的粉絲群。我們看到了來自韓國的 The Glory，這是我們有史以來第四大非英語發布。我們有大明星出演的令人難以置信的大片，比如《你們這些人》、《你的家或我的家》、《謀殺之謎 2》，在 90 年代秀的多機位喜劇領域表現非常出色，以及《風雲變幻》的無劇本電影。

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.

所以在上個季度，我們對內容的結果感到非常興奮。我們必須保持這種狀態，以贏得那些共享帳戶並發展廣告支持層。

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

你錯過了牛肉。你沒有這麼說。太不可思議了。

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.

我錯過了一堆。傑西卡，為什麼當我們談論我們的內容時，有時聽起來像是一份洗衣清單。這是一個很長的清單，真正說明了做到這一點有多麼困難，那就是要達到人們真正想要的娛樂的質量和廣度。每個人的品味都非常不同，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.

牛肉加1。這是一段美好的時光。

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.

好吧，那也是。順便說一句，這是本季度的新內容，並且已經開始。它正在——這是一個巨大的開端。這又是另一個廣受好評的例子，我們希望它可能在頒獎季表現出色，但受到粉絲的喜愛。

Great. And with that...

偉大的。有了那個...

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。只想快速告訴你，我們對這個季度非常滿意。 2023 年是一個良好的開端。就參與度、收入和利潤而言，Netflix 是領先的流媒體服務。流媒體是家庭娛樂的未來。因此，就在昨天，尼爾森發布的數據顯示，在 23 年第一季度，Netflix 是美國收視率最高的廣播公司或流媒體公司，而且利潤率相當可觀。我們有——而且我們有足夠的成長空間。即使有如此巨大的觀看量，在我們最成熟的市場（如美國和英國），我們的電視總時間仍佔總時間的 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.

在收入和利潤方面，我們正在增長，但沒有我們認為的那麼快，也沒有我們想要的那麼快，但我們正在增長並且我們是盈利的。我們有一條清晰的道路來重新加速收入和利潤的增長，我們正在執行它。您將在第二季度看到更廣泛的付費共享，我們將繼續發展該廣告業務。我們也在成長——目標是繼續增加自由現金流。正如我們今年所說，我們將產生約 35 億美元的自由現金和更高的利潤率。

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，這個賬戶共享計劃幫助我們擁有更大的潛在付費會員基礎，我們可以繼續為 Netflix 服務並長期發展，這就是我們一直如此專注於執行的原因。因此，我們的熱門電影、必看電視節目、必玩遊戲的多樣性和質量，我們將繼續努力提高發現率，進行更熱鬧、更有創意的營銷，因為當我們為我們的成員，我們作為企業交付。而且，我們每個月、每個季度和每年都比我們的競爭對手做得更好、更快，從而不斷做到這一點。謝謝，傑西卡。