Netflix Inc (NFLX) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to Netflix Q3 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 from Bank of America. As a reminder, we will be making forward-looking statements, and actual results may vary. Jessica, let me turn it over to you now for your first question.

下午好，歡迎參加 Netflix 2023 年第三季財報訪談。我是 Spencer Wang，財務、投資人關係與企業發展副總裁。今天與我一起的還有聯合執行長泰德‧薩蘭多斯 (Ted Sarandos)；和格雷格·彼得斯；和財務長 Spence Neumann。本季的受訪者是來自美國銀行的 Jessica Reif Ehrlich。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。潔西卡，現在讓我把第一個問題交給你。

Thank you. So let's start with the you, Ted. Now that 1 strike is over, the writers guild, what are the implications for your business?

謝謝。那我們就從你開始吧，泰德。現在第一次罷工已經結束，對於作家協會來說，這對您的業務有何影響？

Thanks, Jessica. Let me first say, we want nothing more than to resolve this and get everyone back to work. That's true for Netflix. That's true for every member of the AMPTP. It's why our member CEOs have prioritized these negotiations above everything else we're doing. We spent hours and hours with SAG-AFTRA over the last few weeks, and we were actually very optimistic that we are making progress.

謝謝，傑西卡。首先我要說的是，我們唯一想要的就是解決這個問題，讓每個人都重返工作崗位。對於 Netflix 來說，情況確實如此。對於 AMPTP 的每個成員都是如此。這就是為什麼我們的會員執行長將這些談判置於我們所做的所有其他事情之上。過去幾週我們花了大量時間與美國演員工會和電視和廣播藝人工會 (SAG-AFTRA) 進行溝通，我們實際上非常樂觀地認為我們正在取得進展。

But at the very end of our last session together, the guild presented this new demand that, kind of on top of everything, for a per subscriber levy unrelated to viewing or success, and this really broke our momentum, unfortunately. But you should know, we are incredibly and totally committed to ending this strike. The industry, our communities and the economy are all hurting. So we need to get a deal done that respects all sides as soon as we possibly can.

但在我們上一次會議的最後，協會提出了一項新的要求，即對每個訂閱者徵收與觀看次數或成功無關的費用，不幸的是，這真的打破了我們的勢頭。但你應該知道，我們全心全意地致力於結束這場罷工。整個產業、我們的社區和經濟都受到了傷害。因此我們需要盡快達成一項尊重各方利益的協議。

In terms of the impact, these are the times that I'm glad we have such a rich and deep and broad programming selection. We -- programming costs themselves rise nearly every year, primarily driven by competition. Competition for talent, competition for shows and films. And you can see we've managed successfully through that year on year on year. And the same is true for -- during COVID when we were able to manage the slate through a prolonged and pretty unpredictable production interruptions. So -- but I really think we're not really that focused right there on how this impacts much, except for our biggest opportunity, which is to continue improving the quality of the slate.

從影響力方面來看，我很高興我們有如此豐富、深入和廣泛的節目選擇。我們——節目製作成本本身幾乎每年都在上漲，主要原因是競爭。才藝的競爭、演出和電影的競爭。你也可以看到我們年復一年地成功度過難關。在疫情期間也是如此，我們能夠在長期且相當難以預測的生產中斷期間管理好計劃。所以 — — 但我真的認為，我們並沒有真正關注這會帶來多大影響，除了我們最大的機會，那就是繼續提高片頭的品質。

We're focused on that day in, day out, year in, year out. And I'm incredibly pleased with Bela and the team and the progress that they're making. So if you'll indulge me for just a second, I just would draw your attention to the Q4 slate as an example of that, headlined by the return of The Crown for its final season. This is one of the most ambitious television shows in the history of television.

我們日復一日、年復一年地專注於此。我對貝拉和團隊以及他們所取得的進展感到非常滿意。因此，如果您能容忍我片刻，我只想請您關注 Q4 的計劃，作為一個例子，其頭條新聞是《王冠》最後一季的回歸。這是電視史上最雄心勃勃的電視節目之一。

We have a new season of Big Mouth, a history -- a new season of Elite, the launch of Berlin, which is a spin-off from our La Casa de Papel, our Money Heist franchise, a new limited series like All the Light We Cannot See from Shawn Levy. That's incredible. And Bodies from the U.K. And that's just on the TV side.

我們有《青春無禁忌》新一季、《名校風暴》新一季、《柏林》的開播，它是《紙鈔屋》的衍生劇、《紙鈔屋》系列、以及肖恩·利維創作的類似《所有我們看不見的光》的限定劇。那真是難以置信。還有《來自英國的屍體》。

And on the film side, one of our strongest quarters ever. We have this enormous sci-fi spectacular from Zack Snyder, Rebel Moon; a new film from David Fincher, The Killer. And these films that just lit up the fall film festivals recently, like May December from Todd Haynes; and Bradley Cooper's Maestro; the doc feature, American Symphony. That's all coming in Q4.

從電影方面來看，這是我們有史以來最強勁的一個季度。我們有紮克·施奈德的這部鉅製《叛逆之月》；大衛芬奇的新片《殺手》。這些電影最近在秋季電影節上大放異彩，例如 Todd Haynes 的《五月十二月》；以及布萊德利·庫柏飾演的大師；紀錄片《美國交響曲》。這一切都將在第四季發生。

And for family too, we've got a new animated feature from Adam Sandler, we've Leo, that's hysterical; Chicken Run 2, which is a sequel to the most successful stop-motion animation film ever; and a new series from the CoComelon world called CoComelon Lane; Family Switch from Director McG, which stars Jennifer Garner and Ed Helm. So it's an incredible slate, something new and exciting for all taste all moods, all ages, and we're just super proud of the team that they've been able to manage through this and still deliver so much to it for our members.

對於家庭來說，我們有亞當桑德勒的一部新動畫片，我們有萊昂納多，這太搞笑了； 《小雞快跑 2》是有史以來最成功的定格動畫電影的續集；以及來自 CoComelon 世界的新系列 CoComelon Lane； 《家庭轉換》由 McG 導演，珍妮佛嘉納和艾德赫爾姆主演。所以這是一份令人難以置信的禮物，適合所有品味、所有情緒、所有年齡段的人，是新鮮而令人興奮的禮物，我們為團隊能夠完成這項工作並仍然為我們的會員帶來如此多的東西感到非常自豪。

One more on strike-related -- like, just the aftermath, you discussed at a recent conference, giving talent more transparency. Could you talk about what that looks like? What are the new metrics talent will be paid on? And is it even standardized across the industry?

再問一個關於罷工的問題——就像您在最近的一次會議上討論的後果一樣，讓人才更加透明。你能說說它是什麼樣子的嗎？人才薪酬將依據哪些新指標？並且它在整個行業中是否是標準化的？

Yes. Look, what I talked about there was heading towards a world where -- that -- where streaming data will be much more readily available. Remember, data -- streaming itself is not that exotic anymore. We've been doing it for 15 years. So we -- in the beginning, we thought there was a hard kind of apples and oranges comparison to ratings and streaming.

是的。你看，我在那裡談論的是走向一個串流資料更容易取得的世界。請記住，資料流本身不再那麼奇特。我們已經這樣做了15年。因此，我們一開始就認為，收視率和串流媒體之間存在著難以比較的蘋果和橘子。

And I think we've gotten to a place where it's mostly about engagement and that does capture the value of watching and that things will become much more transparent the way TV has always had ratings and music has always had billboard and the theatrical has always had box office. So it'll be much more common for the data to be fully transparent.

我認為我們已經到了一個主要關注參與度的階段，這確實體現了觀看的價值，而且事情將變得更加透明，就像電視一直有收視率、音樂一直有廣告牌、劇院一直有票房一樣。因此，數據完全透明將變得更加普遍。

What I didn't mention though is that part of that -- of our reason for not publishing early was part of our promise with creators. At the time we started creating original program, our creators felt like they were pretty trapped in this kind of overnight ratings world and weekend box office world defining their success and failures.

但我沒有提到的是，我們沒有提前發布的原因部分是我們對創作者的承諾。當我們開始創作原創節目的時候，我們的創作者感覺他們陷入了這種以隔夜收視率和週末票房來決定其成敗的世界。

And as we all know, a show might have enormous success down the road and it wasn't captured in that opening box office. So part of this was the relationship with talent, not just the business aspects of it. And I do think that over time, people are much more interested in this. We're on the continuum today of how much data do we publish. I think we've been leading the charge, starting everyone down the path of a top 10, publishing our top 10 list and our annual wrap-up list and everything that give a lot of transparency to the viewing. And I just expect it'll be more and more transparent.

眾所周知，一部劇集可能在之後獲得巨大的成功，但這並不一定體現在首映票房上。因此，其中一部分是與人才的關係，而不僅僅是商業方面。我確實認為隨著時間的推移人們會對此更感興趣。我們今天處於發布資料量的連續狀態。我認為我們一直處於領先地位，帶領大家踏上前十名的征程，發布我們的前十名榜單和年度總結榜單，所有這一切都為觀看提供了很大的透明度。我只是希望它會越來越透明。

Great. Let's move on to paid sharing. Have you identified most of the borrowers? And can you provide any help in how much more is left to go and the challenge in completing the crackdown?

偉大的。讓我們繼續討論付費分享。您是否已確定大多數借款人？您能否提供一些幫助，說明還有多少工作要做以及完成打擊行動面臨哪些挑戰？

Sure. I'll take that one. And I'll start by saying we're just incredibly pleased with how it's been going. And you can see the progress from our membership growth in Q2. Now in Q3, you can see it embedded in the revenue outlook for Q4. I think paid sharing represents the kind of difficult challenge where we needed to balance both important relevant consumer considerations with the importance of ensuring that our business got reasonably paid when we deliver entertainment.

當然。我要那個。首先我想說，我們對目前的進展感到非常滿意。您可以從第二季的會員成長中看到進步。現在到了第三季度，您可以看到它已融入第四季度的收入展望中。我認為付費共享代表著一種艱鉅的挑戰，我們需要在重要的相關消費者考慮因素和確保我們在提供娛樂時獲得合理報酬的重要性之間取得平衡。

And it's an example where we leveraged core execution capabilities that we've been building for over a decade, sort of how you develop good product experiences, how do you solve hard problems through them, how do you have an iterative model where you listen to consumers to tell us what's working and what's not, so we've been excited about that.

這是我們利用十多年來一直在構建的核心執行能力的一個例子，例如如何開發良好的產品體驗，如何透過它們解決難題，如何建立一個迭代模型，透過傾聽消費者的意見告訴我們什麼有效，什麼無效，所以我們對此感到非常興奮。

But because it's such a challenging problem, such -- we're shifting essentially consumers' expectations and what they expect from us, we've always thought that making this change should be done in a steady, considered way. And so our plan has been to stage out this rollout. We've been delivering our product experience to different borrower cohorts according to that plan. And as a result, I think as you're alluding to, there are a number of borrower cohorts, which has, as of today, have not received part of that experience.

但因為這是一個非常具有挑戰性的問題，我們正在從根本上改變消費者的期望以及他們對我們的期望，我們一直認為，應該以穩健、深思熟慮的方式進行這項改變。因此，我們的計劃是分階段推出這項舉措。我們一直按照該計劃向不同的借款人群體提供我們的產品體驗。因此，我認為正如你所暗示的，有許多藉款人群體截至今天還沒有獲得這種體驗。

And just to explain that a bit. I mean, part of the motivation to stage it out is based on technical considerations. So this is our ability to build features and improve model accuracy over time in a way that allows us to ensure that we're accurately developing and applying our interventions in as effective and as positive a way for consumers as possible.

稍微解釋一下。我的意思是，推出這項措施的部分動機是基於技術考量。因此，這是我們建立特徵並隨著時間的推移提高模型準確性的能力，使我們能夠確保以盡可能有效和積極的方式為消費者準確開發和應用乾預措施。

Part of that has been just to stage things out based on borrower behavior. So we want to show up with the right product experience at the right moment that's more likely to convert a borrower over rather than have them spin off. So we want to think about that from maximizing long-term revenue.

其中一部分只是根據借款人的行為來分階段實施。因此，我們希望在正確的時機提供正確的產品體驗，這樣更有可能吸引借款人改變貸款，而不是讓他們流失。因此，我們想從最大化長期收入的角度來考慮這個問題。

So we're going to continue the rollout for the next couple of quarters, and I think folks are trying to figure out how much how much juice is left there. And I would say we anticipate that we will have incremental acquisition, incremental adds for the next several quarters. We've seen that in the last couple of quarters. I think also worth noting that, that was on top of also very healthy organic, meaning not driven by paid sharing growth.

因此，我們將在接下來的幾季繼續推出這項產品，我想大家正在試圖弄清楚還剩下多少電力。我想說的是，我們預計未來幾季我們將會有增量收購和增量增加。我們在過去幾個季度已經看到了這一點。我認為還值得注意的是，這也是非常健康的有機成長，這意味著不是由付費共享成長所推動的。

So we anticipate seeing that for the next several quarters to come. And then just stepping back, there's a set of borrowers that we're not going to convert. We haven't converted yet. We're not going to convert over the next couple of quarters. But that really represents how we think about paid sharing going forward, which is it's now become part of just our standard way of operating. And we have many hundreds of millions of qualified households out there. They're smart TV households that we want to win over, over the next several years.

因此我們預計在接下來的幾個季度中會看到這種情況。退一步來說，有一批借款人是我們不會轉換的。我們還沒有轉換。我們不會在接下來的幾個季度內進行轉換。但這確實代表了我們對未來付費共享的看法，現在它已經成為我們標準營運方式的一部分。我們還有數億符合資格的家庭。我們希望在未來幾年內贏得這些智慧電視家庭。

And those borrowers we're not going to convert in the next couple of quarters represent that same group. So we got to go after them the same way we're going after people who have never signed up for Netflix, which is having an incredible content offering, an incredible value and get them so excited that they just have to sign up.

而在接下來的幾季裡我們不會轉換的那些借款人就代表了同一群人。因此，我們要以吸引那些從未註冊過 Netflix 的用戶的方式來吸引他們，Netflix 提供令人難以置信的內容，具有令人難以置信的價值，讓他們興奮不已，迫使他們註冊。

Right. Moving on to the recent advertising restructuring. Can you talk about why you made the management change and what you would like to accomplish?

正確的。繼續討論最近的廣告重組。您能談談為什麼要進行管理變革以及想要實現什麼目標嗎？

Yes. First, I'd say Jeremi has done a great job getting us essentially from 0 to where we are today. She'd laid the foundation for the ads business. She's hired and built a burgeoning team of leaders who, in turn, now are hiring the teams and people who are going to take the business forward.

是的。首先，我想說傑里米做出了巨大貢獻，帶領我們從零走到了今天。她為廣告業務奠定了基礎。她聘請並組建了一支蓬勃發展的領導團隊，而這個團隊現在正在聘請能夠推動業務發展的團隊和人員。

But it's an important time and I think a great time for Amy to come in and extend that great work, to build on that foundation and drive our ads business to the next level. And why am I so specifically excited about Amy in the role. First of all, she's a high Netflix tenure employee. She's been with the company for over 7 years.

但這是一個重要的時刻，我認為對艾米來說這是一個非常好的時機，可以繼續我們的出色工作，在此基礎上再接再厲，將我們的廣告業務提升到一個新的水平。為什麼我對艾米出演這個角色如此興奮呢？首先，她是 Netflix 的資深員工。她在這家公司工作已經七年多了。

She's demonstrated really positive impact and great results in several different roles, but most recently as part of the studio and leading a big global team that is scaling very, very, very quickly, which sounds familiar when you think about what -- where we want to take our ads business. Second, she's got broad entertainment experience, ranging from content licensing, distribution. She's got business development, finance strategy at Netflix and in prior roles.

她在多個不同的職位上都表現出了真正積極的影響和出色的成績，但最近作為工作室的一員，她領導著一個規模非常非常快的大型全球團隊，當你思考我們想要將我們的廣告業務帶到何處時，這聽起來很熟悉。其次，她擁有豐富的娛樂經驗，包括內容授權、發行等。她曾在 Netflix 及之前的職位上負責業務開發和財務策略。

So I think when you think about that assemblage of skills, and you think about the existing ads leadership team that we have that has got a rich, rich history in ads in general and connected TV, especially if you think about somebody like Peter Naylor, who started selling connected TV at Hulu. That's a strong team to take our ads business to the next level.

所以我認為，當你考慮到這些技能的組合，並考慮到我們現有的廣告領導團隊，他們在廣告和連網電視方面擁有豐富的歷史，特別是如果你想到像彼得·內勒 (Peter Naylor) 這樣的人，他開始在 Hulu 銷售連網電視。這是一支強大的團隊，能夠將我們的廣告業務提升到新的水平。

And if -- and maybe I'll just -- if you -- I want to maybe just restate what we think the promise and the opportunity and sort of where we're at on ads business is. And so first of all, just starting off with, this is a $180 billion opportunity when you think about linear TV, you think about connected TV, not including YouTube, not including China and Russia. And we think we're in a great position to win some of those dollars.

如果——也許我只是——如果你——我可能只想重申一下我們對廣告業務的前景和機會的看法以及我們所處的位置。首先，當你想到線性電視、想到連網電視（不包括 YouTube，也不包括中國和俄羅斯）時，這是一個價值 1800 億美元的機會。我們認為我們很有機會贏得其中的部分資金。

We've got great content. The brands want to be next to. We're a safe place for brands to exist. We got great engagement from our members. That's a really strong foundation to work with. But we got a lot of work, and we know we have a lot of work to fulfill that potential.

我們有精彩的內容。各大品牌都想成為下一個目標。我們是品牌生存的安全之地。我們獲得了會員們的熱烈參與。這是一個非常堅實的工作基礎。但是我們還有很多工作要做，我們知道我們還有很多工作要做才能發揮這個潛力。

Among that work, we've said it many times, I'll say it probably many times going forward. But scale is the #1 priority. We're making good progress there. This quarter, we grew our ad plan membership 70% sequentially quarter-to-quarter. That's on top of the last quarter where we grew at 100% quarter-to-quarter. We now have 30% of our new sign-ups choosing our ads plan in our ads countries.

在這項工作中，我們已經說過很多次了，今後我可能還會說很多次。但規模是第一要務。我們在那裡取得了良好的進展。本季度，我們的廣告計劃會員數量較上季增加了 70%。上一季我們的季度環比成長率達到了 100%。目前，我們有 30% 的新註冊用戶在我們的廣告國家選擇我們的廣告方案。

And we've done it by making the ads offering more competitive. We've gotten to over 95% content period with our non-ads plans. We've improved features like a number of streams, the video resolution. We're going to keep doing that. We're adding downloads now. So we'll keep that good trajectory going and keep focusing on it.

我們透過使廣告更具競爭力實現了這一目標。我們的無廣告計劃已使內容期超過 95%。我們改進了諸如串流數量、視訊解析度等功能。我們將繼續這樣做。我們現在正在新增下載。因此，我們會保持這一良好軌跡並繼續關注它。

Second big priority for us is delivering features and products that advertisers want. We've heard again and again, I've heard it this week, ad week from advertisers, top of that list is measurement. We've launched our measurement partnership with Nielsen in the United States this month in October. So we're excited about that. We've got a long list of other partners across other countries that we've got to deliver that same capability in, so we're excited about getting that out.

我們的第二大優先事項是提供廣告主想要的功能和產品。我們已經一次又一次地聽到，本週我從廣告商那裡聽到過，排名第一的是測量。我們於本月十月與美國尼爾森建立了測量合作關係。我們對此感到很興奮。我們在其他國家擁有眾多合作夥伴，我們必須向他們提供相同的功能，因此我們很高興能夠實現這一目標。

We're also excited about new products. So we've rolled out our top 10 media buy. We're going to roll out our binge ad product later this year. We're launching more ways to buy programmatically through Microsoft that gives more buyers more ways to access our inventory. So we've got a lot of work to do here on all of those fronts, but we've always said this is a multiyear build, a multiyear progress. We got a lot that we've got going on, and we're excited about the future to come.

我們也對新產品感到興奮。因此，我們推出了十大媒體購買。我們將在今年稍後推出我們的狂歡廣告產品。我們正在透過 Microsoft 推出更多以程式化方式購買的方式，為更多買家提供更多方式存取我們的庫存。因此，我們在所有這些方面還有很多工作要做，但我們一直說，這是一個多年的建設、多年的進步。我們已經做了很多事情，對未來的發展充滿期待。

So now that you've phased out basic for new subs and you're getting extra members or paid more per sub from password sharing crackdown you've introduced advertising in 12 countries, could you talk about the outlook for ARM in '24 and beyond?

那麼，既然您現在已經逐步淘汰了新訂閱用戶的基本服務，並且透過打擊密碼共享來吸引更多會員或為每個訂閱用戶支付更多費用，您已經在 12 個國家/地區推出了廣告，您能談談 ARM 在 24 年及以後的前景嗎？

You want -- you guys want me to take that one?

你們想要──你們想讓我拿那個嗎？

Go ahead, Spence.

繼續吧，斯賓塞。

All right, you winded up for me. Thanks, Jessica. So I would say just generally, when we think about '24 and beyond, think about it as our revenue growth profile in general. And we talked about this recently. We expect a more balanced mix of membership and ARM growth in '24 and beyond '24.

好吧，你為我結束了。謝謝，傑西卡。因此我想說，一般來說，當我們考慮24年及以後時，將其視為我們的整體收入成長狀況。我們最近談論了這個問題。我們預計，在'24年及以後，會員人數和ARM成長將更加均衡。

So just looking at '24 specifically, as Ted talked about, we expect to have a great slate to drive the business forward. And we expect to continue to do things like add extra members, grow our advertising revenue, as Greg discussed. And in addition, have some pricing adjustments. You saw that in our letter. All those things will drive ARM.

因此，正如 Ted 所說的那樣，具體來看 24 年，我們期望有一個出色的業績來推動業務向前發展。正如格雷格所討論的那樣，我們希望繼續增加會員，增加廣告收入。此外，也進行了一些價格調整。您在我們的信中看到了這一點。所有這些都將推動 ARM 的發展。

So '23 was a pretty unusual year where essentially all of our growth came from member growth. And going forward, more broadly, not just '24 and beyond, we'll grow our business by continuing to kind of improve our service, increasing engagement, increasingly satisfying current and future members. And now that, as Greg discussed, we've got and account sharing solution, we have a more clear path to more deeply penetrate that big addressable market of 0.5 billion connected TV households and growing.

因此，23 年是非常不尋常的一年，我們的成長基本上全部來自於會員成長。展望未來，從更廣泛的角度來看，不只是24年及以後，我們將透過持續改善服務、增加參與度、持續滿足現有和未來的會員需求來發展我們的業務。正如格雷格所討論的，現在我們已經有了帳戶共享解決方案，我們有了一條更清晰的道路來更深入地滲透到 5 億聯網電視家庭這個巨大的潛在市場，並且這個市場還在不斷增長。

And with our continued plan evolution, pricing sophistication and all that hard work growing our ads business, we'll keep getting better at monetizing that big and growing reach and engagement. So we believe we've got a long runway for growth in both kind of more membership and higher ARM over time in a more balanced way than what you saw this year, which was, again, a pretty early year.

隨著我們計劃的不斷改進、定價的不斷複雜化，以及我們為發展廣告業務所付出的努力，我們將越來越擅長將越來越大的覆蓋範圍和參與度轉化為現金。因此，我們相信，與今年相比，我們在增加會員數量和提高 ARM 方面都有很長的成長空間，而且成長方式更加平衡，而今年又是相當早的一年。

And then you touched on -- Greg touched on scale and advertising. How do you get to scale? Is it all through pricing, like, pricing changes? And what would you consider scale?

然後您提到——格雷格提到了規模和廣告。如何才能擴大規模？這一切都是透過定價，例如價格變動來實現的嗎？您認為規模是多少？

Yes. I think it's important to note that scale isn't -- it's not a binary condition, right? So it's not like you suddenly add 1 more member and you become a must-buy situation. So we become increasingly competitive with increasing reach. It's also, I think, worth noting that it's different in different countries. And it's largely based on what's the competitive channels and what's that competitive dynamic.

是的。我認為需要注意的是，規模不是──它不是一個二元條件，對嗎？因此，這並不意味著你突然增加 1 名成員就變成了必須購買的情況。因此，我們的競爭力隨著影響力的擴大而不斷增強。我認為，也值得注意的是，不同國家的情況有所不同。這主要取決於競爭管道和競爭動態。

So having said that, though, we carry several relevancy targets on a per country basis, think about this as essentially percentage of market penetration that helps us focus and drive the rate of growth that we desire. And we've got more work to do to get those. So, I mean, like, we're not satisfied with the scale that we're at in any country that we're in. We want to be bigger, and we know we can be bigger.

儘管如此，我們還是在每個國家設定了幾個相關性目標，將其視為市場滲透率的百分比，這有助於我們集中精力並推動我們期望的成長率。為了實現這些目標我們還有許多工作要做。所以，我的意思是，我們對我們在任何國家所處的規模都不滿意。

I think there's a variety of techniques that we can employ to do that pricing and thinking about how do we factor in what's optimal pricing for ads, no ads. That's part of what we're doing and thinking about plan evolution. Part of it is what I mentioned before, which is feature set, right? These are the things that consumers want to sign up for. Part of it, too, is actually just educating consumers.

我認為我們可以採用多種技術來進行定價，並思考如何考慮廣告和無廣告的最佳定價。這是我們正在做的事情的一部分，也是我們思考計畫演變的一部分。其中一部分就是我之前提到的，也就是功能集，對嗎？這些都是消費者想要簽署的東西。其中一部分其實只是教育消費者。

I think what we are seeing is, in some of our countries, consumers think about an ads experience mostly anchored and linear in what their expectation around ad load, frequency rates are. And to some degree, actually, some of our streaming competitors haven't done maybe as great a job in building an ads experience, which informs that expectation as well.

我認為我們看到的情況是，在某些國家，消費者對廣告體驗的看法大多與他們對廣告負載、頻率的期望有關，並且呈現線性關係。事實上，在某種程度上，我們的一些串流媒體競爭對手在打造廣告體驗方面可能做得併不那麼出色，這也反映了這種預期。

The part of it is just educating consumers about what the actual Netflix ads experience is so that they can think about what's the right choice for them. Do they want a lower price with ads and what we think is a great ads experience for consumers really, or do they want to pay more and skip ads. So it's all those things coming together that ultimately drive us to the several multiples of scale that we're at today that we'll be satisfied with.

其中的一部分只是讓消費者了解 Netflix 的實際廣告體驗，以便他們能夠思考什麼是適合自己的正確選擇。他們是否想要以更低的價格投放廣告，從而獲得我們認為真正優質的廣告體驗？所以所有這些因素結合在一起，最終推動我們達到今天令人滿意的規模的幾倍。

One last one maybe on advertising before we move on to margins. But you mentioned a lot of the innovative offerings that you plan on and some of it's sponsored. Just -- it's very unique. It's different. When do we get to a point or when will you have a point where it's targeted, addressable, so it's really relevant for consumers and so they would want to see the ads?

在我們討論利潤之前，最後一個問題可能是關於廣告。但您提到了許多您計劃推出的創新產品，其中一些是贊助的。只是——它非常獨特。這是不一樣的。我們什麼時候才能達到某個點，或什麼時候才能達到某個點，讓它具有針對性、可尋址性，這樣它才能真正與消費者相關，從而讓他們願意看到廣告？

Yes. So we're working with Microsoft right now on targeting, so you'll see that roll out in the near future. And that, I think, is the first step of how we think about increasing targeting relevance through both a combination of product sets. So what are the types of ad products that brands can buy that yield increasing relevance as well as improving our sort of sophistication on what we might call targeting from a digital perspective, which is basically matching consumers who are most interested in that particular brand's message.

是的。因此，我們目前正在與微軟就目標進行合作，因此您將在不久的將來看到這款產品的推出。我認為，這是我們考慮透過產品組合來提高定位相關性的第一步。那麼，品牌可以購買哪些類型的廣告產品，不僅可以提高相關性，還可以提高我們從數位角度所謂的定位的複雜程度，這基本上就是匹配對特定品牌訊息最感興趣的消費者。

Right. So Spence, I guess this one's for you on margins. But could you elaborate on areas like ad tech, content spend? Well, you did talk about content spend in your letter, but any other meaningful investment areas, something that maybe we're not thinking about?

正確的。所以斯賓塞，我想這個問題和你的利潤有關。但您能詳細說明一下廣告技術、內容支出等領域嗎？嗯，您確實在信中談到了內容支出，但還有其他有意義的投資領域嗎？

Sure. So let me step back a bit with some quick context. So first, Jessica, we set margin targets. They're our best judgment of how kind of best to grow the long-term value of Netflix, and we're trying to balance investment for future growth with near-term profits.

當然。因此，讓我簡要回顧一下背景。首先，傑西卡，我們設定了利潤目標。這是我們對如何最好地提高 Netflix 的長期價值的最佳判斷，並且我們正試圖平衡未來成長的投資和短期利潤。

So for instance, after investing heavily to launch Global in 2016, Global Netflix, we wanted to take a disciplined approach to building profitability as we grew revenue because we felt, one, it was a good way to build that profit muscle across the company; and two, we understood that investors were -- they've been pretty patient with us, so we wanted to demonstrate the scalability and the health of the business model. And so that took us from -- it was, like, 4% OI margin, our operating income margin business in 2016 to our current roughly 20% margin. So we think a pretty good indicator that ad scale streaming can be a quite good business.

例如，在 2016 年投入巨資推出 Global Netflix 之後，我們希望在增加收入的同時採取嚴謹的方法來提高盈利能力，因為我們認為，首先，這是在整個公司範圍內增強盈利能力的好方法；其次，我們了解投資者——他們對我們非常有耐心，所以我們想展示該商業模式的可擴展性和健康狀況。這樣，我們的營業收入利潤率就從 2016 年的 4% 上升到了目前的約 20%。因此，我們認為這是一個很好的指標，表明廣告規模串流媒體可以成為一項相當不錯的業務。

Now stepping back, there's no change in our financial objectives and also no change in our long-term margin expectations, including the fact that we see a -- and we don't think we're anywhere near a margin ceiling. We've got a long runway of margin growth. So again, no change in our objectives, no change in our long-term margin expectations.

現在退一步來說，我們的財務目標沒有變化，我們的長期利潤預期也沒有變化，包括我們看到——並且我們認為我們遠遠沒有接近利潤上限。我們的利潤成長空間還很大。所以，我們的目標沒有改變，我們的長期利潤預期也沒有改變。

But our current profitability and scale, we think it's prudent to balance that historical pace of margin improvement with growth investments. So you asked about growth investments. We think we've got a lot of places where we can continue to invest, plenty of room to invest further in our existing content categories. We're a small share of viewing in every country in which we operate.

但就我們目前的獲利能力和規模而言，我們認為，平衡利潤率的歷史成長速度與成長投資是明智之舉。所以你問的是成長投資。我們認為我們有很多地方可以繼續投資，現有的內容類別還有很大的進一步投資空間。在我們開展業務的每個國家，我們的收視份額都只佔很小一部分。

Plus building out those ads capabilities that Greg talked about, our live offering and new content categories like games, so there's plenty to do. But all that said, we'll continue to drive healthy margin expansion. We expect roughly 22% to 23% operating margin in '24, assuming no material swings in FX. So that's up from our current expectation of 20% this year, which is at the high end of the range that we targeted in the beginning of the year.

此外，我們也建立了 Greg 談到的廣告功能、我們的直播服務和遊戲等新內容類別，所以還有很多事情要做。但儘管如此，我們將繼續推動利潤率的健康擴張。假設外匯沒有重大波動，我們預期24年的營業利潤率將在22%至23%左右。因此，這高於我們今年目前的預期 20%，也處於我們年初設定的目標範圍的高端。

So again, Jessica, just like we did in the past, going forward, we'll take a disciplined approach to balancing margin improvement with investing into our growth. We actually put a chart at the end of the letter that shows how we managed that balance historically, growing content investment, profit margins and cash flow. And you should expect that we'll carry that same discipline going forward as we invest and grow into that big opportunity we have.

所以，傑西卡，就像我們過去所做的那樣，展望未來，我們將採取嚴謹的方法來平衡利潤率提高與成長投資。我們實際上在信件的末尾放了一張圖表，展示了我們如何在歷史上保持這種平衡，增加內容投資、利潤率和現金流。而您應該期望，當我們投資並抓住這一巨大機會時，我們仍將秉承同樣的紀律。

How does licensing content from third parties play into your overall content strategy? It seems like you've had incredible success with third-party content and -- I mean you always have, but in the last year, things like Suits or Band of Brothers, and you mentioned it in the letter, but if you could just talk about the third-party licensing.

第三方授權內容對您的整體內容策略有何影響？看來你們在第三方內容方面取得了令人難以置信的成功——我的意思是你們一直都取得了成功，但在去年，像《金裝律師》或《兄弟連》這樣的作品，你們在信中提到了這一點，但你能談談第三方許可嗎？

Yes. Yes. Licensing third-party content has always been part of our strategy, and we've -- something we've been really great at being able to do is match that audience. I think Suits is a great example of the impact of the Netflix effect that we can have because of our distribution footprint and our recommendation system, we were able to take suits, which had played on cable and had played on other streaming services and pop it right into the center of the culture in a huge way, not just in the U.S. but all over the world.

是的。是的。授權第三方內容一直是我們策略的一部分，而且我們非常擅長滿足受眾的需求。我認為《金裝律師》很好地體現了 Netflix 效應，得益於我們的分銷管道和推薦系統，我們能夠讓曾在有線電視和其他串流媒體服務上播放的《金裝律師》大規模地成為文化的中心，不僅在美國，而且在全世界。

According to the Nielsen charts, Suits was the #1 watched streaming series for 13 straight weeks. That's like -- that is a record for Nielsen. So this continues to be important for us to add a lot of breadth of storytelling to our consumers of a wide range of taste. And we can't make everything, but we can help you find just about anything. That's really the strength.

根據尼爾森排行榜，《金裝律師》連續 13 週成為串流電視劇收視率第一。這可以說是尼爾森的紀錄。因此，這對我們來說仍然很重要，因為我們需要為不同品味的消費者提供豐富多彩的故事。我們無法製造所有的東西，但是我們可以幫助您找到幾乎任何東西。這確實是一種力量。

And I do think that looking -- you mentioned Band of Brothers, but in that HBO deal, we had Insecure, we had Ballers. They came out and they were very successful in Netflix, and they popped into the top 10 on their originating network for the first time. So that was on their streaming service, which is really powerful.

我確實認為，你提到了《兄弟連》，但在與 HBO 的交易中，我們有《不安感》，也有《球手們》。這部劇在 Netflix 上映後獲得了巨大成功，並首次進入原創網絡的前十名。這就是他們的串流媒體服務，它確實非常強大。

And I think we have more to come with Six Feet Under and True Blood coming and not just on the TV side, but we're also proud to be able to bring movies like Super Mario Brothers and Spider Man across the Spider-Verse from our other suppliers. And in one way or another, we're in business with nearly every supplier, including our direct competitors.

我認為我們還會推出更多作品，例如《六呎風雲》和《真愛如血》，而且不只是在電視方面，我們也很自豪能夠從其他供應商帶來《超級瑪利歐兄弟》和《蜘蛛人》等蜘蛛人平行宇宙的電影。不管怎樣，我們都與幾乎所有供應商都有業務往來，包括我們的直接競爭對手。

And I think that we bring a ton of value to them. And I think when you think about what happens when that show runs in and becomes a huge success on Netflix, it has lasting value. I mean, look at the value we created that still continues today for shows like Friends and The Office and Full House and Gilmore Girls and all these other shows that really found an audience on Netflix even after they have more or less played out through traditional models.

我認為我們為他們帶來了巨大的價值。我認為，當你想到當該節目在 Netflix 上播出並獲得巨大成功時會發生什麼時，它具有持久的價值。我的意思是，看看我們創造的價值，這些價值至今仍在延續，例如《老友記》、《辦公室》、《歡樂滿屋》和《吉爾莫女孩》等節目，即使它們或多或少是透過傳統模式播出的，它們仍然在 Netflix 上找到了觀眾。

Spence, one more on margins for you, but you said in September that long-term margins will be, I think the way you said it was similar to other networks, which historically have been in the 40% to 50% range. Could you help us think through the ramp in margins over time?

史賓塞，再問您一個關於利潤率的問題，您在 9 月說過，長期利潤率將與其他網路類似，歷史上一直在 40% 到 50% 的範圍內。您能否幫助我們思考利潤率隨時間推移如何上升？

Jessica, I'll probably disappoint you as I have in the past on this. We're not going to put a long-term number out there. As I said, we don't see any ceiling, any near-term ceiling to our long-term margin potential.

傑西卡，我可能會讓你失望，就像過去一樣。我們不會公佈長期數字。正如我所說的，我們沒有看到任何上限，也沒有看到我們長期利潤潛力的任何短期上限。

We've talked in the past about how we're going to feel our way through to those kind of long-term steady-state margins, but we think we have a lot of things working in our favor. We have a very scalable business model. You see that play out over the last handful of years and continue to do so as we produce content all over the world for big local impact, but also with the ability for those stories to through great subs, dubs, discovery to reach more and more people and to be enjoyed around the world. So it's a very scalable content model.

我們過去曾經談論過如何摸索出實現那種長期穩定狀態的利潤率，但我們認為有很多事情對我們有利。我們有一個非常可擴展的商業模式。您可以在過去幾年中看到這種情況，並且這種情況將繼續下去，因為我們在世界各地製作內容，以產生巨大的當地影響，同時這些故事也能夠透過出色的字幕、配音和發現接觸到越來越多的人並受到世界各地的欣賞。所以這是一個非常可擴展的內容模型。

It's a global network at scale that has -- in many ways, has not been seen with legacy entertainment networks. So we think we've got a long way to go. As I just talked about, we want to balance those increasing profits in the near term with investing into that long-term opportunities. So still a lot of runway that's a set of benchmarks. You can look at it. There's others as well. But suffice to say, we think we've got a long and healthy runway in terms of growing margins.

它是一個規模龐大的全球網絡，在許多方面，傳統娛樂網絡都是前所未有的。因此我們認為我們還有很長的路要走。正如我剛才所說，我們希望在短期利潤成長與長期投資機會之間取得平衡。因此，仍有許多跑道可以作為一組基準。你可以看一下。還有其他人。但可以說，我們認為我們在利潤率成長方面擁有長期且健康的發展空間。

One thing I would add to that, Jessica, also I totally agree with what Spence said, which is, again, a lot of opportunity to grow margins, but profit dollars also matter, too, right? So as we expand into big new addressable markets like advertising that Greg alluded to or gaming also, right? So those open up big new sort of areas for us to expand into.

潔西卡，我想補充一點，我也完全同意史賓塞所說的，也就是說，增加利潤的機會很多，但是利潤金額也很重要，對吧？因此，當我們擴展到像 Greg 提到的廣告或遊戲這樣的大型新目標市場時，對嗎？所以這些為我們拓展開闢了新的廣大領域。

And then we intend to grow margins, too, but we also want a lot of profit dollars as well. So we're not narrowly optimizing just for a percentage margin.

然後我們也打算增加利潤，但我們也希望獲得大量的利潤。因此，我們並不是只為了百分比利潤而進行狹隘的最佳化。

Right. Of course. You announced some price changes today in premium and basic in several countries and more to come, can you provide a current view of price increase or time frame for the standards here?

正確的。當然。您今天宣布了幾個國家高級版和基礎版的價格變化，並且接下來還會有更多價格變化，您能否提供一下目前的價格上漲情況或標準的時間框架？

Yes. So as you know, our focus on plan evolution over the last 18 months has largely been about paid sharing. And now that we've rolled that out, we broadly see the benefits. As I outlined in the letter, that's become a normal part of our business, which then allows us to return to our core approach to pricing. And that approach, that philosophy has not changed.

是的。如您所知，過去 18 個月我們計劃發展的重點主要放在付費共享上。現在我們已經推出了這項計劃，並且廣泛地看到了它的好處。正如我在信中所述，這已成為我們業務的正常部分，這使我們能夠回歸核心的定價方法。這種方法、這種哲學並沒有改變。

We look to wisely invest the money that members pay us, deliver back to them more amazing stories, more entertainment value. And then when we think we're doing that, we'll occasionally ask them to pay a bit more to keep that virtuous circle spinning, so hence, the changes that you noted that we've announced in the letter.

我們希望明智地投資會員支付給我們的錢，為他們帶來更多精彩的故事和更多的娛樂價值。然後，當我們認為我們正在這樣做時，我們偶爾會要求他們多付一點錢，以保持這種良性循環，因此，就有了您在信中註意到的我們在宣布的變化。

I think it's also worthing that we seek to have a wide and even wider over time range of price points with the corresponding set of features, of course, that allows entertainment fans from around the world that have different needs to be able to access the great storytelling that our creative partners are doing at a price point that works for them at a feature set that works for them.

我認為，我們還應該尋求擁有更廣泛的價格範圍和相應的功能集，當然，這使得來自世界各地有不同需求的娛樂愛好者能夠以適合他們的價格和功能集訪問我們的創意合作夥伴製作的精彩故事。

Part of that widespread is a low entry price point, and that's why we're keeping that low entry price point static as it is. So we think that this $6.99 in the U.S., GBP 4.99 in the U.K., EUR 5.99 in France. It's just an incredible entertainment value. And if you think about the breadth and the variety of storytelling that we're offering, whether that's compared to our streaming competitors, compared to traditional pay TV, certainly, even the price of a movie ticket, we think that's just an amazing offer.

這種普遍現象的部分原因是入門價位較低，這就是我們保持低入門價位不變的原因。因此我們認為在美國是 6.99 美元，在英國是 4.99 英鎊，在法國是 5.99 歐元。這確實具有令人難以置信的娛樂價值。如果你考慮我們提供的故事的廣度和多樣性，無論是與我們的串流媒體競爭對手相比，還是與傳統付費電視相比，當然，甚至是與電影票的價格相比，我們都認為這是一個令人驚嘆的提議。

And our goal and plan is to continue to be a great entertainment value. And beyond that, we're not going to comment on other price changes or other changes on tiers. We'll sort of find our way based on that philosophy and see when the right time to ask customers to pay a little bit more would be.

我們的目標和計劃是繼續保持巨大的娛樂價值。除此之外，我們不會對其他價格變動或其他層級變動發表評論。我們會根據這個理念找到自己的方法，看看什麼時候是要求顧客多付一點錢的正確時機。

One more question on the pricing, though. Would you -- given the price increase for just premium and basic not standard, do you expect any -- or advertising tier, do you expect any movement between the tiers as a result of these price increases?

不過，關於定價還有一個問題。鑑於價格上漲的只是高級版和基本版，而非標準版，您是否預期這些價格上漲會導致廣告層級之間出現任何變動？

I think pricing always results in a bit of movement between the tiers. More of that movement is how people are signing up. So we see that as more what it influences. But also, it'll influence plan changes as well. But generally, plan changes tend to be -- our plans tend to be relatively sticky. So I would imagine that there is a -- that momentum will continue.

我認為定價總是會導致層級之間出現一些波動。這種運動更多的是體現人們的簽約方式。因此，我們更重視的是它的影響。但它也會影響計劃的變化。但一般來說，計劃變更往往是——我們的計劃往往相對固定。因此我可以想像這種勢頭將會持續下去。

So your letter today says that -- you stated that you will spend $17 billion in '24 on content spend, up from $13 billion in '23. Obviously, that was somewhat strike impacted. That is how should we -- how can you help us think through how content spend will grow beyond '24. What is normalized growth?

所以你今天的信中說——你聲明你將在24年的內容支出為170億美元，高於23年的130億美元。顯然，這在某種程度上受到了罷工的影響。這就是我們應該做的事——您能如何幫助我們思考 24 年後內容支出將如何成長。什麼是正常化成長？

Well, you see that we've done is we want to grow the content spend just about half a step ahead of the -- ahead of revenue to create the value proposition for our members. So the more we put into it, and a lot of it is tied to the ability to create hits out of that pool.

嗯，您看，我們所做的是，我們希望將內容支出的成長速度提高到比收入高出半步的水平，從而為我們的會員創造價值主張。因此，我們投入的越多，很大程度上就與創造熱門產品的能力有關。

And I would say one thing if I could, if you don't -- this past quarter, we had this really remarkable story about something that we could do. But Spence talked a little bit about the kind of scale of the content spend, but this show One Piece. One Piece is something that is a very unique property. It was created 26 years ago by Eiichiro Oda. It is over 1,000 episodes of the animated series based on the Japanese Manga.

如果可以的話我想說一件事，如果你不想說的話——上個季度，我們有一個關於我們可以做的事情的非常了不起的故事。但史賓塞稍微談了一下內容花費的規模，但這部影集是《海賊王》。海賊王 (One Piece) 是一個非常獨特的東西。它是由尾田榮一郎26年前創作的。這是根據日本漫畫改編的 1,000 多集動畫系列。

It's nearly sacred IP. And we were able to -- with our Japanese creative teams and our American teams getting together, working with our partners at Tomorrow Studios and the showrunner, Steven Maeda to adapt this into a show that the world fell in love with. And when I say to that, it's -- we've got -- this show is #1 in 84 countries around the world, which is something that Stranger Things couldn't -- didn't do, that Wednesday didn't do.

這幾乎是神聖的 IP。我們能夠——透過我們的日本創意團隊和美國團隊的合作，與明日工作室的合作夥伴以及節目製作人史蒂芬·前田一起，將其改編成一部全世界都喜愛的節目。當我這麼說的時候，我們已經做到了——這部劇在全球 84 個國家的收視率第一，這是《怪奇物語》做不到的，《星期三》也沒有做到。

And it's so rare for an English show to be that popular in Japan and Korea, Brazil and in the U.S. at the same time. And the other fun part of it is Iñaki Godoy, who stars in the show, it was one of the most difficult casting challenges in the history of our original programming was who's going to play Monkey D. Luffy and he was right under our nose, right in our talent family.

一檔英語節目同時在日本、韓國、巴西和美國如此受歡迎是非常罕見的。另一個有趣的部分是該劇的主演伊納基·戈多伊，這是我們原創節目歷史上最困難的選角挑戰之一，誰來扮演蒙奇·D·路飛，而他就在我們眼皮底下，就在我們才華橫溢的家庭中。

We discovered him a couple of years ago, met him in this great show at our Mexican series called Who Killed Sara, and then we were able to cast him in this and now he's a global superstar. So this is that kind of thing you could do well, a thing that's hard to copy and gives us kind of competitive running room from our competitors, being able to do that more and more.

幾年前，我們發現了他，在我們墨西哥系列劇《誰殺了莎拉》的精彩演出中遇到了他，然後我們讓他出演這部電影，現在他已經是全球巨星了。所以這是你能做好的事情，很難複製，並且為我們提供了與競爭對手競爭的空間，能夠做得越來越多。

I don't mean -- when I say that, I don't mean making things more global, I think making things that really resonate for the core audience. And usually, local audiences want very local content. And in this case, the local audience is the fan of One Piece, which was very discriminating, and we had to please them first, just like our original shows in Spain have to really please the Spanish customer first. So we can do this. We spend the money well. We have impact with the spend, and we grow it as we grow revenue.

我這樣說並不是說要讓事情變得更全球化，而是讓事情真正引起核心觀眾的共鳴。通常，當地觀眾想要非常本地化的內容。在這種情況下，當地觀眾是海賊王的粉絲，他們非常挑剔，我們必須先取悅他們，就像我們在西班牙的原創節目必須先取悅西班牙顧客一樣。所以我們可以做到這一點。我們把錢花在刀刃上。我們的支出是有影響的，而且隨著收入的增加，支出也會增加。

Maybe -- sorry, go ahead -- Jessica. I was just going to build kind of a little bit on Ted's point on the kind of trajectory of content spend. So -- and we talked about this a little bit in the past. So first, in the letter, we talk about that after '24, we hope to get cash content spend back up to you at or near that $17 billion level.

也許 — — 抱歉，請說 — — 潔西卡。我只是想稍微闡述 Ted 關於內容支出軌跡的觀點。所以 — — 我們過去曾討論過這個問題。首先，在信中，我們談到在 24 年後，我們希望將現金內容支出恢復到 170 億美元的水平或接近 170 億美元的水平。

The biggest swing factor is going to be when the SAG-AFTRA strike resolves. And so that'll get us to a cash to P&L ratio kind of closer to 1:1.1x. And so we're not putting a specific number out there for free cash flow in '24. What that gets us to, when you think about the combination of our revenue growth outlook, our margin guidance and target cash content spend, we'll deliver substantial free cash flow in '24. And then going beyond that, we do expect to tick up our content investment over time as we also prove out sustained healthy revenue growth.

最大的影響因素是美國演員工會（SAG）和美國電視和廣播藝人工會（AFTRA）罷工事件的解決時間。這樣我們的現金與損益比就接近 1:1.1x。因此，我們不會公佈 24 年自由現金流的具體數字。當您考慮我們的收入成長前景、利潤率指引和目標現金內容支出時，我們會在24年實現可觀的自由現金流。除此之外，我們確實希望隨著時間的推移增加我們的內容投資，因為我們也證明了持續健康的收入成長。

So assuming -- we talked about it, I think, in the last call. Assuming no big expansions, we'd expect our cash to P&L ratio of content spend cash to content amort in the P&L to be roughly 1.1x. So that's kind of one way folks are thinking about how to model our growth in content spend. If we -- as we grow our revenue, as we improve our profitability, we should see both increasing content spend but also free cash flow growing nicely over time.

所以假設——我想，我們在上次通話中討論過這個問題。假設沒有大規模擴張，我們預期內容支出現金與損益表中內容攤銷的現金與損益表比率約為 1.1 倍。這是人們思考如何模擬內容支出成長的一種方式。如果我們——隨著我們的收入成長，隨著我們獲利能力的提高，我們應該看到內容支出的增加，而自由現金流也會隨著時間的推移而穩定成長。

And then just 1 last -- just a follow-up for Ted though. There's so much going on in content right now. Can you maybe talk about investment priorities? Like, how do you think about whether it's local language film, TV? You've made a lot of deals with some third-party film companies, television companies. Could you give us some color on how you think about content spend?

然後只剩最後一個了 —— 不過這只是 Ted 的後續。目前內容方面發生了很多事情。能談談投資重點嗎？例如，您如何看待它是否是本地語言電影、電視？您與一些第三方電影公司、電視公司達成了許多交易。您能否向我們闡述您對內容支出的看法？

Yes. We always have a lot of plate spinning because our members have got such different tastes and different desires. And we're trying to please them all and like I say, trying to find that person who really fell in love with us for Prestige TV and then discovered Love is Blind. That's a pretty common household to be honest with you.

是的。我們總是有很多事情要做，因為我們的成員有不同的品味和不同的願望。我們試圖取悅所有人，就像我說的，試圖為 Prestige TV 找到那個真正愛上我們然後發現《愛是盲目的》的人。老實說，這是一個相當平凡的家庭。

So we've got to be able to be good at so many different things. And our partnerships, I'm assuming you're talking about Skydance in this case, is -- it really helps us find and keep up that scale as we grow. So we're really thrilled with our success in animated features. It's a very long cycle of development and production. Sometimes it could take a decade to deliver a really great animated feature film.

所以我們必須能夠擅長很多不同的事情。而我們的合作夥伴，我假設你在這種情況下談論的是 Skydance，它確實幫助我們在發展過程中找到並維持這種規模。因此，我們對動畫片的成功感到非常興奮。這是一個非常長的開發和生產週期。有時可能需要十年的時間才能製作出一部真正優秀的動畫長片。

And as you know, we move pretty fast, and we've been moving pretty fast. And no single company has ever really successfully launched more than 2 animated features in a single year. So we wanted -- that deal helps us to complement the work that we're doing, like you saw this year with Leo and Chicken Run coming out and Nimona that already came out.

如你所知，我們的行動非常快，而且我們的行動一直非常快。並且，沒有任何一家公司真正在一年內成功推出 2 部以上的卡通。所以我們希望——這筆交易能幫助我們補充我們正在做的工作，就像你今年看到的《Leo》和《Chicken Run》的推出以及《Nimona》的推出一樣。

So we've got a very -- there's a ton of appetite. If you look at the top 10 animated features of since Nielsen's been tracking movie watching and 7 of them are animated features. So there's a lot of appetite for animated features, and we're committed to that part of the business.

所以，我們的胃口非常大。如果你看一下尼爾森自從追蹤電影觀看以來排名前 10 的動畫片，你會發現其中有 7 部都是動畫片。因此，人們對動畫片的需求很大，我們也致力於這部分業務。

And we do that through a combination of licensing, partnerships and original production and original creation, and not just the U.S. but all over the world. So we have to find that right balance of invest, finding the right product market fit, which helps us grow those territories, and most importantly, helps create a value proposition for consumers, and they could say, "Hey, that -- what I pay for Netflix, I can pay a little bit more because I get so much value there, and I'm spending so much of my time there."

我們透過授權、合作、原創製作和原創創作等多種方式來實現這一目標，不僅在美國，而且在全世界。因此，我們必須找到正確的投資平衡點，找到適合市場的正確產品，這有助於我們發展這些領域，最重要的是，有助於為消費者創造價值主張，他們會說，“嘿，我為 Netflix 支付的費用，我可以多付一點，因為我在那裡獲得了很多價值，而且我在那裡花了很多時間。”

So if you think about the -- for the last 37 of the last 38 weeks of this year, Netflix has had the #1 streaming series on -- of all -- in all of streaming. And for 31 of those 38 weeks, we've had the #1 movie, too. And in any given week, we might have had the #1, 2 and 3. So we really -- we've got a lot going on and we've got to stay focused on continuing to improve the value proposition to consumers, which drive the numbers that we've been talking about on this call.

所以如果你想想——在今年最後 38 週的最後 37 週中，Netflix 一直是串流媒體中排名第一的劇集。在這 38 週中，有 31 週我們的電影都位居榜首。在任何一周，我們都可能有第一、第二和第三名。

Spence, you announced a very significant increase in your buyback today. Should we think of the $2.5 billion buyback in the third quarter as sort of a run rate moving forward?

史賓塞，你今天宣布大幅增加回購量。我們是否應該將第三季的 25 億美元回購視為未來的一種運行率？

I wouldn't kind of read through to that, Jessica. We had kind of slowed down as we -- as the business slowed down and we wanted to -- we talked about the fact that we had less than typical forward visibility into our forecast over the past year or so as we were looking to reaccelerate the business and also roll out paid sharing. And now much of that is behind us, as we've said, and we've got a better view going forward and so we ramped up our repurchase because we had built up some cash on the balance sheet as well.

我不會讀到那部分，潔西卡。隨著業務的放緩，我們已經放慢了速度，我們想要——我們談到這樣一個事實，即我們對過去一年左右的預測的前瞻性洞察力低於典型水平，因為我們希望重新加速業務並推出付費共享。正如我們所說的，現在大部分問題都已經過去了，我們對未來有了更好的看法，因此我們加大了回購力度，因為我們在資產負債表上也累積了一些現金。

Our target minimum cash is roughly 2 months of revenue. So plus or minus $6 billion of cash that we look to hold on our balance sheet, and we've gotten ahead of that, are still a little ahead of that. So -- but that's really what we're managing, too, is to: one, primarily drive the business forward, grow the business, expand our cash flow; and then as cash -- excess cash builds on the balance sheet, to return it to shareholders. So we put a pretty specific target out there of roughly 2 months of revenue in the form of cash on the balance sheet, and that's the way I think you should think about what our pacing will be over time.

我們的目標最低現金約為2個月的收入。因此，我們希望在資產負債表上保留約 60 億美元的現金，而且我們已經領先這個數字，但仍略微領先於這個數字。所以 — — 但這也確實是我們管理的目的：第一，主要推動業務向前發展，發展業務，擴大我們的現金流；然後作為現金－多餘的現金在資產負債表上累積，以返還給股東。因此，我們設定了一個非常具體的目標，即在資產負債表上以現金形式實現大約 2 個月的收入，我認為您應該以這種方式思考我們的進度。

Moving on to gaming. It feels like almost like the way you described advertising, like a walk, crawl, run approach. What is a near and midterm strategy in gaming?

繼續進行遊戲。感覺就像您描述的廣告一樣，像是走路、爬行、跑步的方式。遊戲中的近期和中期策略是什麼？

Well, let's start with the big prize. I think that's the better way to look at it, which is games is a huge entertainment opportunity. So we're talking about $140 billion worth of consumer spend on games outside of China and outside of Russia. And from a strategic perspective, we believe that we can build games into a strong content category, leveraging our current core film and series by connecting members, especially members that are fans of specific Ips, with games that they will love.

好吧，讓我們從大獎開始。我認為這是更好的看待這個問題的方式，即遊戲是一個巨大的娛樂機會。因此，我們談論的是中國和俄羅斯以外的消費者在遊戲上的支出價值 1400 億美元。從戰略角度來看，我們相信我們可以將遊戲打造為一個強大的內容類別，利用我們當前的核心電影和連續劇，將會員（尤其是特定 IP 的粉絲）與他們喜愛的遊戲聯繫起來。

I think it's worth noting that if we can make those connections and as we make those connections as we're seeing, we're essentially sidestepping the biggest issue that the mobile games market has today, which is how do you cost effectively acquire new players.

我認為值得注意的是，如果我們能夠建立這些聯繫，正如我們所看到的，我們基本上避開了當今手機遊戲市場面臨的最大問題，即如何以經濟有效的方式獲取新玩家。

So that's the real proposition. We think if we deliver that, we give members great games, entertainment experiences that they love at sufficient scale, then we leverage back into the core business. We increase engagement. We increase retention. We Increase value delivered. Those all drive our core business metrics.

這才是真正的主張。我們認為，如果我們實現這一點，我們就能為會員提供他們喜愛的精彩遊戲和娛樂體驗，並實現足夠規模，然後我們就能重新回到核心業務中。我們增加參與度。我們提高保留率。我們增加交付的價值。這些都推動了我們的核心業務指標。

And I think it's actually just a very natural extension of what you were just talking with Ted about. If you think about the range of content that we're offering, the variety of content and entertainment that we're offering, games just adds 1 extra layer to that variety and that depth.

我認為這實際上只是您剛才與泰德談話內容的自然延伸。如果你考慮我們提供的內容範圍、內容和娛樂的多樣性，你會發現遊戲只是為這種多樣性和深度增加了一層。

And we're also seeing, I would say, back to moving it more to your short term and midterm. We're also seeing performance metrics that support that this fundamental strategic hypotheses are sound. So games engagement right now on our service drives core business metrics in a way which is incremental to movies and series.

我想說，我們也看到，它正在更多地轉移到短期和中期。我們也看到了支持這個基本策略假設合理的績效指標。因此，目前我們服務上的遊戲參與度以對電影和連續劇的增量方式推動核心業務指標。

So -- but the main challenge ahead of us, to get to your midterm, is that our current scale and, frankly, our current investment level are both very, very, very small relative to our overall content spend and engagement. So now our job is to incrementally scale to the place where games have a material impact on the business. We've got ambitious plans there. We want to really grow our engagement by many multiples of where it is today over the next handful of years.

所以——但是在進入中期選舉之前，我們面臨的主要挑戰是，我們目前的規模，坦白說，我們目前的投資水平相對於我們的整體內容支出和參與度來說都非常非常小。所以現在我們的工作是逐步擴大規模，讓遊戲對業務產生實質影響。我們在那裡有雄心勃勃的計劃。我們希望在未來幾年內，我們的參與度將比現在成長數倍。

And we can see how to get there. Looking a layer deeper at the title level, we see -- some titles are really working for our members, and they're working for our business. If we can do more of those, we know we can scale into that proposition.

我們可以知道如何到達那裡。更深層地從標題層面來看，我們發現有些標題確實對我們的會員有用，而且對我們的業務也有用。如果我們能夠做更多這樣的事，我們知道我們就能實現這個主張。

We've got to do that through better title selection based on everything that we're learning. We got to do it on better product features to maximize connection with the audience for any given title. And we have to do it by gradually improving consumer awareness, which is we've seen as when we launched other content categories. You can think about unscripted or you can think about film, that broadly lifts overall engagement metrics as consumers learn that we're a place to go to, to find games.

我們必須根據所學到的一切知識來更好地選擇標題。我們必須透過更好的產品功能來最大限度地與特定作品的觀眾建立聯繫。我們必須透過逐步提高消費者意識來做到這一點，這是我們在推出其他內容類別時所看到的。你可以考慮非劇本類的遊戲，也可以考慮電影，當消費者了解到我們是一個可以去尋找遊戲的地方時，這在很大程度上提升了整體參與度指標。

I'm excited about what we got going on in Q4. We're going to launch some big, high-profile titles which sort of keeps that drumbeat going. We got Dead Cells. We've got Football Manager 2024. We've got Money Heist. Think about connections with our IP that's coming in Q4 as well. That's Casa De Papel for folks who have -- saw it in that language. We also have Virgin River coming in Q1.

我對我們第四季的進展感到非常興奮。我們將推出一些大型、高知名度的遊戲，以保持這種勢頭。我們得到了《死亡細胞》。我們有《足球經理 2024》。考慮一下與我們即將在第四季度推出的 IP 之間的聯繫。對於那些用該語言看過的人來說，這就是 Casa De Papel。 我們在第一季也推出了 Virgin River。

So as you pointed out, this trajectory is not dissimilar from what we've seen before, when we've launched a new region. Think about Latin America or we launched a country like Japan where traditional Western media companies have struggled or we launched new genres like unscripted. We've got to crawl, walk, run and we build it, but we see a tremendous amount of opportunity to build a long-term center value of entertainment, more entertainment value for our members.

正如您所指出的，這個軌跡與我們之前推出新地區時所看到的軌跡並沒有什麼不同。想想拉丁美洲，或者我們在日本這樣的國家推出節目，在那裡傳統的西方媒體公司還在苦苦掙扎，或者我們推出了非劇本類的新類型節目。我們必須爬行、行走、奔跑並建造它，但我們看到了大量的機會來建立一個長期的娛樂中心價值，為我們的會員提供更多的娛樂價值。

That's a great experience for the super fan to get themselves in the universe in between seasons of a show. It's really exciting.

對於超級粉絲來說，在劇集播出的季節之間進入宇宙是一次很棒的體驗。這真是令人興奮。

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

傑西卡，我們還有時間回答最後兩個問題。

Okay, great. I'll get to it and so the first of the 2, sports. You're creating the Netflix Cup Tournament to be your next month. Is this a change in your sports strategy at all? Or how should we think about that?

好的，太好了。我會去做，所以首先是兩項運動。您正在創建 Netflix 盃錦標賽作為您的下個月的活動。這是否是你的體育策略的改變？或者說我們該如何思考這個問題？

Yes. I knew this was coming, Jessica. We are in the sports business, but we're in the part of the sports business that we bring the most value to, which is the drama of sport. So look at the success we've had with Drive to Survive. Look at the success we've had with Tour de France, Quarterback, Full Swing, Untold, most recently with Beckham. David Beckman is one of the biggest stars in the world and his documentary on Netflix brought him almost 0.5 million new social media followers in a week.

是的。我知道這會發生，傑西卡。我們從事體育事業，但我們所處的體育事業中最有價值的部分是體育戲劇性。看看我們透過《Drive to Survive》的成功。看看我們在環法自行車賽、四分衛、全速前進、不為人知以及最近與貝克漢合作所取得的成功。大衛貝克曼是世界上最著名的明星之一，他在 Netflix 上播出的紀錄片在一周內為他帶來了近 50 萬名新的社交媒體粉絲。

So we are having a big impact on sports through the thing that we're most great at, which is the drama of sport. The Netflix Cup is a live event that actually brings together the cast of Drive to Survive and Full Swing and puts them into a live golf tournament that we are going to stream live on Netflix on November 14. And it's -- I think about it as a great way of extending those great drama of sport brands that we've created. But no core change in our live sport strategy or licensing and live sports.

因此，我們透過我們最擅長的事情，也就是體育戲劇，對體育運動產生了巨大的影響。 Netflix 盃是一項現場活動，它實際上將《極速求生》和《全速前進》的演員們聚集在一起，讓他們參加一場現場高爾夫錦標賽，我們將於 11 月 14 日在 Netflix 上直播。但我們的體育直播策略、授權和體育直播並沒有發生根本性的變化。

We are investing heavily in increasing our live capabilities so that as we -- as the demand grows for that and we find different ways, the liveness can be part of the creative storytelling, we want to be able to do that at a big scale.

我們正在投入大量資金來提高我們的現場表演能力，這樣隨著需求的增長，我們找到了不同的方式，讓現場表演成為創意敘事的一部分，我們希望能夠大規模地做到這一點。

There was some news also today, I guess, on comedy. But my last question, to stay with where Spencer is, you've talked a little bit more recently about your ancillary businesses, including the Netflix House. Can you talk about what that looks like over time? And will it be a big investment area? But more importantly, will it be a contributor?

我想，今天也有一些關於喜劇的新聞。但我的最後一個問題是，繼續問斯賓塞的問題，您最近談到了一些輔助業務，包括 Netflix House。您能談談隨著時間的推移它會變成什麼樣子嗎？這會是一個很大的投資領域嗎？但更重要的是，它會成為貢獻者嗎？

Yes. Look at the -- this initiative lives inside of our Consumer Products and Experiences Group. Today, they run these successful businesses where they travel these live experiences all over the world and fans engage in them in ways that would shock you. People love these things so much, they show up. Dozens of people have proposed marriage in the -- at the Bridgerton Ball.

是的。看看這個——這項舉措存在於我們的消費品和體驗集團內部。如今，他們經營著這些成功的事業，將這些現場體驗傳播到世界各地，粉絲們以令人震驚的方式參與其中。人們非常喜歡這些東西，所以它們就出現了。數十人在布里傑頓舞會上求婚。

It's really important, in a way, to kind of deepen fandom, a way to express fandom. You kind of see it on a large scale with theme parks. These build-outs are not going to be like a theme park, both in that they won't have that gigantic CapEx. And they also -- we expect that fans will go multiple times a year, not just once every couple of years. And it's a way to take a business that's really good at growing our brands and strengthening our brands.

從某種程度上來說，這對於加深粉絲感情、表達粉絲感情的方式非常重要。你可以在大型主題樂園中看到這種現象。這些建築不會像主題樂園一樣，因為它們不會有那麼巨大的資本支出。我們預計粉絲們每年會去好幾次，而不是每隔幾年去一次。這是一種讓企業真正善於發展和強化我們品牌的方法。

And today, it doesn't -- has a big start-up and shutdown costs as they travel around and put them under 1 umbrella where we can add a little technology and make it a really phenomenal experience from being as part of the Money Heist, Escape Room or the Stranger Things experience or the Squid Game challenge, all those different things that people can do live together and have a lot of fun. And they can also go to the Netflix Bites and have food experience with all the Netflix food brands.

而今天，它不需要大量的啟動和關閉成本，因為它們會到處旅行，並把它們放在一個保護傘下，我們可以添加一些技術，讓它成為金錢搶劫、密室逃脫、怪奇物語體驗或魷魚遊戲挑戰的一部分，成為一次真正非凡的體驗，所有這些不同的事人們可以一起生活，享受很多樂趣。他們還可以前往 Netflix Bites 品嚐所有 Netflix 食品品牌的美食。

So it really kind of strengthens the brands and strengthens the excitement about the things people are watching on Netflix and falling in love with. It gives them a place to go and express it. It's not a material investment relative to the court, to the big business that we're all in. But it's a great way of building it, like our consumer products business.

因此，它確實在某種程度上強化了品牌，並增強了人們對在 Netflix 上觀看並愛上的節目的興奮感。它為他們提供了一個表達自我的場所。對於法院和我們參與的大企業來說，這不是一項實質的投資。

Great. Well, great well, Jessica, thank you very much for your questions, and we appreciate everybody tuning into our earnings call. And we're looking forward to chatting with you all next quarter, if not sooner. Thank you.

偉大的。好的，傑西卡，非常感謝您的提問，我們感謝大家收聽我們的財報電話會議。我們期待下個季度甚至更早與大家交流。謝謝。