Netflix Inc (NFLX) 2023 Q4 法說會逐字稿

Hello, and welcome to the Netflix Q4 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.

您好，歡迎收看 Netflix 2023 年第四季財報採訪。我是 Spencer Wang，財務、投資人關係與企業發展副總裁。今天加入我的還有聯合執行長 Ted Sarandos 和 Greg Peters；和財務長斯賓塞·諾伊曼。

We do have a few changes to our interview format this quarter. First, we are live streaming this over YouTube. So hopefully, it's working. I guess we'll find out shortly enough. Second, we've collected questions from the analyst community, and I'll be reading those questions and moderating the interviewer -- the interview.

本季我們的訪談形式確實有一些變化。首先，我們透過 YouTube 進行直播。所以希望它能發揮作用。我想我們很快就會知道。其次，我們從分析師社群收集了問題，我將閱讀這些問題並主持面試官的面試。

As a reminder, we'll 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, let's dive first into the first set of questions, which is about our new partnership with WWE that we announced this morning. For Ted, the first question comes from Dan Salmon. Can you please expand on the decision to acquire WWE Raw rights? Is the WWE audience, one that is underpenetrated for Netflix today? And can you expand on the economics or the cost of the deal, please?

接下來，讓我們先討論第一組問題，這是關於我們今天早上宣布的與 WWE 的新合作夥伴關係。對泰德來說，第一個問題來自丹‧薩爾蒙。您能否詳細說明購買 WWE Raw 版權的決定？如今 Netflix 的 WWE 觀眾滲透率還不夠嗎？能否詳細介紹一下這筆交易的經濟狀況或成本？

Thanks, Dan. If I could raise a single eyebrow one at a time, I would lean into the camera with the single eyebrow and do my best way in. But I'm going to say instead that we are thrilled to bring this WWE Live programming to our members around the world. WWE Raw is sports entertainment, which is right in the sweet spot of our sports business, which is the drama of sport. Think of this as 52 weeks of live programming every week -- every year. It feeds our desire to expand our live event programming. But most importantly, fans love it.

謝謝，丹。如果我能一次抬起一根眉毛，我會用一根眉毛靠向鏡頭並盡我所能。但我要說的是，我們很高興能將這個 WWE Live 節目帶給我們的會員世界各地。 WWE Raw 是體育娛樂，這正是我們體育業務的最佳點，即體育的戲劇性。可以將其視為每週（每年）為期 52 週的現場節目。它滿足了我們擴展現場活動節目的願望。但最重要的是，粉絲們喜歡它。

For decades, the WWE has grown this multigenerational fan base that we believe we could serve and we can grow. We believe that WWE has been historically under-distributed outside of North America. And this is a global deal. So we can help them and they can help us build that fandom around the world. And not to -- I should add that this should also add some fuel to our new and growing ad business. We're very excited about this deal.

幾十年來，WWE 已經發展了這個多代粉絲群，我們相信我們可以服務並且可以成長。我們認為，WWE 歷史上在北美以外地區的分佈一直不足。這是一項全球性協議。所以我們可以幫助他們，他們也可以幫助我們在世界各地建立粉絲群。我應該補充一點，這也應該為我們新的、不斷成長的廣告業務增添一些動力。我們對這筆交易感到非常興奮。

And Ted, did you want to comment on the economics or the cost of the deal?

泰德（Ted），您想對這筆交易的經濟狀況或成本發表評論嗎？

No, we don't comment on the economics of any of our deals. I would just say this is a long-term deal that we're really happy to be in with the WWE.

不，我們不會對任何交易的經濟效益發表評論。我只想說這是一項長期協議，我們很高興與 WWE 達成合作。

Right. Our next question comes from Rich Greenfield of LightShed. Rich, first wants me to say great quarter to you all and his question is, should we think about the WWE deal as fitting into your existing plans to spend roughly $17 billion a year in programming? Or is this expansion into live going to drive overall spending higher? And lastly, could you talk about the opportunities to create shoulder programming around WWE similar to Drive to Survive?

正確的。我們的下一個問題來自 LightShed 的 Rich Greenfield。 Rich，首先要我對你們所有人說一聲偉大的季度，他的問題是，我們是否應該考慮與 WWE 的交易符合你們現有的每年在節目上花費約 170 億美元的計劃？或者這種向現場直播的擴張會推高整體支出？最後，您能談談圍繞 WWE 創建類似於 Drive to Survive 的肩部節目的機會嗎？

Well, expanding into live event programming is something we've talked about for quite a while, and this has been in the works, so we used to look at this as fits inside of our $17 billion programming spend now. So -- and in terms of building on it, you should think about Formula One as -- like this is almost the inverse of Formula One, which is a very big and passionate U.S. fan base and a lot of room to grow outside of the U.S. And we could build that as we have with Formula One, and other sports like through our shoulder programming, like Drive To Survive, like Full Swing, like Break Point, like Quarterbacks, like Tour de France. And now with this great storytelling the events itself are the storytelling of the WWE.

嗯，擴展到現場活動節目製作是我們已經談論了很長一段時間的事情，而且這已經在進行中，所以我們過去常常認為這適合我們現在 170 億美元的節目製作支出。因此，就在此基礎上進行構建而言，您應該將一級方程式視為——就像這幾乎與一級方程式相反，一級方程式擁有非常龐大且熱情的美國粉絲基礎，並且在外部有很大的發展空間我們可以像一級方程式和其他運動一樣，透過我們的肩部計劃來建立這一點，例如“Drive To Survive”、“Full Swing”、“Break Point”、“四分衛”、“環法自行車賽」。現在，有了這個精彩的故事講述，這些事件本身就是 WWE 的故事講述。

So this is a proven formula for us that we're excited to jump into. This is sports entertainment, very close to our core. The deal is long term. We're super excited about it.

因此，這對我們來說是一個經過驗證的公式，我們很高興能夠投入其中。這是體育娛樂，非常接近我們的核心。這筆交易是長期的。我們對此感到非常興奮。

Great. And the WWE partnership has spread a lot of questions around our broader approach to sports, including a question from Ben Swinburn, but I'll read Michael Nathanson's question since he got it in first. So Ted, given the news today, is it safe to presume that you will now be interested in similar types of global sports rights like the NBA or UFC? Why is the WWE more attractive than those rights?

偉大的。 WWE 的合作關係圍繞著我們更廣泛的體育方式提出了很多問題，包括本·斯溫伯恩(Ben Swinburn) 提出的問題，但我會讀一下邁克爾·內桑森(Michael Nathanson) 的問題，因為他首先提出了這個問題。那麼，特德，鑑於今天的新聞，是否可以安全地假設您現在會對 NBA 或 UFC 等類似類型的全球體育賽事版權感興趣？為什麼WWE比那些權利更有吸引力？

So unique to those other opportunities, WWE is sports entertainment. So it's really as close to our core as you can get of that sports storytelling. So -- and in terms of the deal itself, it has options and has the protections that we seek in our general licensing deals and with economics that we're super happy with globally. So I would not look at this as a signal of any other change or any change to our sports strategy.

與其他機會相比，WWE 是體育娛樂的獨特之處。所以它確實是最接近我們核心的運動故事敘述。因此，就交易本身而言，它擁有我們在一般授權交易中尋求的選擇和保護，以及我們在全球範圍內非常滿意的經濟效益。因此，我不會將此視為任何其他變化或我們的體育策略發生任何變化的信號。

Great. Thank you, Ted. I'll move this along now to a series of questions regarding our results and the forecast. First, coming from Mark Mahaney of Evercore and this is for Spence. How should we think about ARM growth going forward? Is mid-single-digit percentage increase a reasonable benchmark? And what are the factors that could create either upside or downside to that growth outlook?

偉大的。謝謝你，泰德。我現在將繼續討論有關我們的結果和預測的一系列問題。首先，來自 Evercore 的 Mark Mahaney，這是寫給 Spence 的。我們該如何看待 ARM 的未來發展？中個位數百分比成長是合理的基準嗎？哪些因素可能對成長前景產生上行或下行影響？

Sure, sure. Thanks, Mark. So well, first, stepping back, 2023, as a reminder, was a pretty unusual year for us. It was essentially all member-driven growth because our pricing and plans focus in '23 was on rolling out paid sharing. We had almost no price increases until late in the year in '23. And even then, it was just a partial quarter impact. As we look to '24, as we noted in the letter for 2024, we expect healthy double-digit FX-neutral revenue growth, including growth in FX-neutral ARM. So we expect continued member growth powered by a grade slate, including the full year impact of our 2023 net adds carrying into '24 and no change to our pricing philosophy.

一定一定。謝謝，馬克。好吧，首先，回顧一下，2023 年對我們來說是非常不尋常的一年。這基本上都是會員驅動的成長，因為我們在 23 年的定價和計畫重點是推出付費共享。直到 23 年年底，我們幾乎沒有漲價。即便如此，這也只是部分季度影響。展望 24 年，正如我們在 2024 年的信中指出的那樣，我們預計外匯中性收入將實現兩位數的健康成長，包括外匯中性 ARM 的成長。因此，我們預計會員將在等級名單的推動下持續成長，包括 2023 年淨增加人數對 24 年的全年影響，並且我們的定價理念不會改變。

You saw some of that pricing action already in the past quarter. And we should get some help from extra members and starting to scale our ads business. But as we said, ads won't be a primary driver in '24. So when you look beyond in general, over kind of multiple years, '24 and beyond, we're focused on continually improving our service. If we do that well, we'll have more members or more value that we can occasionally price into and lots of engagement to build a big and profitable ads business.

您在上個季度已經看到了一些定價行為。我們應該從額外成員那裡獲得一些幫助，並開始擴大我們的廣告業務。但正如我們所說，廣告不會成為 24 年的主要動力。因此，當您超越一般情況時，在多年、24 年及以後，我們將專注於不斷改進我們的服務。如果我們做得好，我們將擁有更多的會員或更多的價值（我們偶爾可以定價）以及大量的參與來建立龐大且有利可圖的廣告業務。

So healthy revenue growth with a mixture of volume and ARM, that's really the output. And I'll probably disappoint because I'm not going to provide a specific guide on ARM because we managed overall revenue growth, but we want ARM to be a component of that growth. Just that it could move up or down based on things in any given year like FX, like the place at which we're scaling our ads reach and some lag that could happen in terms of monetizing that reach and just generally, our pricing and planned strategy more broadly in a given year.

如此健康的收入成長加上銷售和 ARM 的結合，這才是真正的產出。我可能會失望，因為我不會提供有關 ARM 的具體指南，因為我們管理了整體收入成長，但我們希望 ARM 成為該成長的一部分。只是它可能會根據任何特定年份（例如外匯）的情況而上下波動，例如我們擴大廣告覆蓋範圍的地方，以及在貨幣化該覆蓋範圍方面可能發生的一些滯後，以及一般而言，我們的定價和計劃特定年份更廣泛的策略。

Thanks, Spence. Our next question is from Steve Cahall from Wells Fargo for Greg. The question is once a subscriber and ARM benefits from paid sharing begin to diminish in 2024, what do you think are the biggest incremental opportunities to continue to drive subscriber and revenue growth? What types of additional content or additional member benefits provide the best ROI to help sustain healthy revenue growth?

謝謝，史賓塞。我們的下一個問題是來自富國銀行的史蒂夫·卡霍爾向格雷格提出的。問題是，一旦付費共享帶來的訂閱者和 ARM 收益在 2024 年開始減少，您認為繼續推動訂閱者和收入成長的最大增量機會是什麼？哪些類型的附加內容或附加會員福利可提供最佳投資報酬率以幫助維持健康的收入成長？

Well, we're excited to be at the point where we've operationalized that paid sharing product work. So it's integrated in everything we do. And we're iterating and improving on it just like we would any other significant part of our product experience. So we think of this essentially as having built a more effective engine for translating the entertainment value that we're creating for our members into revenue. But I think it's critical to understand that, that engine works on top of, and we see it working on top of, very healthy organic growth.

嗯，我們很高興能夠實施付費共享產品工作。所以它融入了我們所做的一切。我們正在迭代和改進它，就像我們產品體驗的任何其他重要部分一樣。因此，我們認為這本質上是建立了一個更有效的引擎，將我們為會員創造的娛樂價值轉化為收入。但我認為理解這一點至關重要，這個引擎是在非常健康的有機成長之上發揮作用的，而且我們看到它在非常健康的有機成長之上發揮作用。

You can see it in things like better than forecasted churn, we see better-than-expected impact from the recent price changes we did. And that's the model, essentially, right? If we continue to improve our core offering, that means more diversity and more quality from our members' perspective and our films and series now adding the live events programming to add even more value, continue to grow games and the entertainment value that we're delivering through those, then our paid sharing work and our ads work creates a more effective engine to translate all that value into revenue growth. And will support increased conversion of our addressable market in many years to come.

您可以從比預期更好的客戶流失等方面看到這一點，我們看到最近價格變化的影響比預期好。本質上這就是模型，對吧？如果我們繼續改進我們的核心產品，這意味著從我們的會員的角度來看，更多的多樣性和更高的質量，我們的電影和系列現在添加了現場活動節目，以增加更多的價值，繼續發展我們正在開發的遊戲和娛樂價值。透過這些交付，然後我們的付費共享工作和廣告工作創建了一個更有效的引擎，將所有這些價值轉化為收入成長。並將在未來許多年支持我們目標市場的轉換率的提高。

Thanks, Greg. The next question is from Doug Anmuth from JPMorgan. And I'll direct this one to Spence. The $13 million plus pay net adds in Q4 was strong overall and across all regions, but EMEA seemed to drive particular upside. Is there anything specific to point out there, perhaps the ad tier or specific content or localized pricing perhaps?

謝謝，格雷格。下一個問題來自摩根大通的 Doug Anmuth。我會把這個轉給 Spence。第四季薪資淨增加 1300 萬美元，整體而言，所有地區都很強勁，但 EMEA 似乎推動了特別的上漲。有什麼具體需要指出的嗎，也許是廣告層級、特定內容或在地化定價？

Yes, thanks. Well, actually, EMEA is sort of a perfect example of a little bit of what Greg was just talking about. So first, it starts with great slate performance, a great content performance. We had a really strong slate across EMEA from The Crown finale in the U.K., to -- in France, we had Blood Coast and Lupin and Class Act. We had Berlin, Elite and Nowhere in Spain, and in Poland, 1670 and much more, frankly. So it starts with that strong slate. And then by channel, Greg's last answer that kind of better value translation engine, if you will, which drives even more growth through our paid sharing solutions and our monetization engine.

對了謝謝。嗯，實際上，歐洲、中東和非洲地區就是格雷格剛才所說的完美例子。首先，它從出色的板岩性能、出色的內容性能開始。從英國的《王冠》大結局，到法國的《血色海岸》、《羽扇豆》和《階級行動》，我們在歐洲、中東和非洲地區都有著非常強大的陣容。坦白說，我們有《柏林》、《精英》、《西班牙無處》、《1670 年波蘭》等等。所以它從那塊堅固的石板開始。然後按管道，格雷格的最後一個答案是那種更有價值的翻譯引擎（如果你願意的話），它透過我們的付費共享解決方案和我們的貨幣化引擎推動更多成長。

So that helped as well. So it really all came together in EMEA this past quarter. And I'll say, very importantly, it's not just net adds. It's again, our primary focus is on revenue growth. We had very strong revenue growth as a result of that in EMEA this past quarter. 13% FX neutral growth in Q4.

所以這也有幫助。因此，上個季度，歐洲、中東和非洲地區確實實現了這一點。我要說的是，非常重要的是，這不僅僅是淨增加。再說一次，我們的主要關注點是收入成長。由於上個季度歐洲、中東和非洲地區的營收成長，我們的營收成長非常強勁。第四季匯率中立成長 13%。

Thanks, Spence. Doug also has a follow-up question around paid sharing, which I will direct to Greg. How far along are you in terms of the paid sharing benefits? Do you still believe paid sharing will add subscribers for several more quarters? And is there any way to quantify what percentage of the $100 million borrower household population have either become extra members or full paying subscribers?

謝謝，史賓塞。道格還有一個關於付費共享的後續問題，我會把這個問題轉給格雷格。您在付費分享福利方面進展到什麼程度了？您仍然相信付費分享會在幾個季度內增加訂閱者嗎？有什麼方法可以量化 1 億美元借款家庭人口中成為額外成員或全額付費訂閱者的百分比嗎？

Yes. As I mentioned, we've gotten to the point where paid sharing -- the paid sharing product prices is something we do at this point. But also, I think it's important to say that like many other things that we do, we also see a real opportunity to continue to materially improve that value translation engine. So we definitely delivered interventions to new cohorts in the last quarter. We're going to continue to deliver to new cohorts in 2024.

是的。正如我所提到的，我們已經達到了付費共享的地步——付費共享產品價格是我們目前所做的事情。而且，我認為重要的是，就像我們所做的許多其他事情一樣，我們也看到了繼續實質改進價值翻譯引擎的真正機會。因此，我們確實在上個季度對新人群進行了乾預。我們將在 2024 年繼續向新群體提供服務。

But increasingly, I sort of don't think about it as like going after these certain pools, but more about just finding the most effective way to convert folks who are using the service, the right call to action, the right nudge at the right time. And those might have been historical borrowers or folks that are new to the service as well. And we're going to continue to improve that engine. That will continue to improve our growth for years ahead, not just 2024.

但我越來越不認為這就像追求這些特定的群體，而是更多地尋找最有效的方法來轉變使用該服務的人，正確的號召性用語，正確的推動時間。這些人可能是歷史借款人，也可能是剛接觸該服務的人。我們將繼續改進該引擎。這將繼續促進我們未來幾年的成長，而不僅僅是 2024 年。

Great. I'll now transition us to a series of questions around advertising. For Greg, Dan Salmon from New Street Research. His question is, what are some of your most important milestones for the advertising business in 2024? Do you have a target level of MAUs or ad member households, what sorts of improvements to ad tech or measurement are you seeking and perhaps any new country launches for your ads plan?

偉大的。現在我將把我們轉向一系列有關廣告的問題。格雷格（Greg）是來自新街研究公司（New Street Research）的丹·薩蒙（Dan Salmon）。他的問題是，2024 年廣告業務最重要的里程碑是什麼？您是否有 MAU 或廣告會員家庭的目標水平？您正在尋求什麼樣的廣告技術或衡量改進，以及您的廣告計劃是否會在新的國家/地區推出？

Yes. Our top ads priority, you've heard us say before, I think you'll hear us say it again, is scale. We saw a 70% quarter-over-quarter growth last quarter. That's after 70% quarter-over-quarter for the quarter before and then 100% the quarter before that. So that's a good trajectory to be on. We're now at 23 million MAUs, and we see that continuing to grow in the quarters ahead. As to your point about what's the target, every market is different. There's not a magic MAU number, but I think it's fair to say that we've still got plenty of room to grow in all the markets that we operate in.

是的。您以前聽我們說​​過，我想您會聽到我們再說一遍，我們廣告的首要任務是規模。上個季度我們看到環比增長了 70%。這是上一季環比 70% 後的情況，然後是上一季環比 100% 的情況。所以這是一個很好的發展軌跡。目前，我們的每月活躍用戶數已達到 2,300 萬，我們預計這一數字在未來幾季將持續成長。至於你所說的目標是什麼，每個市場都是不同的。月活躍用戶數並沒有一個神奇的數字，但我認為可以公平地說，我們在我們經營的所有市場中仍然有足夠的成長空間。

And we're focused on the additional work that we can do in that space. That means making the ads plan more attractive. We've added streams, higher resolution, downloads. It means engaging partner channels. You see us do more of that. Shifting our plans and pricing structure in other places where we think it's appropriate. So all that works ahead of us. We know we can do tremendous amounts in that space, and we're going to go do it over the next quarters.

我們專注於在該領域可以做的額外工作。這意味著使廣告計劃更具吸引力。我們新增了串流媒體、更高解析度、下載。這意味著吸引合作夥伴管道。你會看到我們做了更多這樣的事。在我們認為合適的其他地方改變我們的計劃和定價結構。所以一切都在我們面前進行。我們知道我們可以在這個領域做大量的事情，並且我們將在接下來的幾個季度內做到這一點。

Second priority, you mentioned this, which is really growing the technical advertising features and growing our go-to-market capabilities. And these are features like targeting, improved ad relevance. That's good for members. It's good for brands. We've got tons to do on improved measurement. We want to launch more ads products. We've got binge ad sponsorships now. And we have to build increasingly the capability to be better partners with advertisers and serve their needs. So this is better sales teams, ad operations and just more capability to meet brands where they need us and how they need us.

第二個優先事項，您提到了這一點，這確實是在增強技術廣告功能並增強我們的上市能力。這些功能包括定位、提升廣告相關性等。這對會員來說是好事。這對品牌有好處。在改進測量方面我們還有很多工作要做。我們想推出更多的廣告產品。我們現在有大量的廣告贊助。我們必須不斷增強能力，成為廣告商更好的合作夥伴並滿足他們的需求。因此，這是更好的銷售團隊、廣告運營以及更多的能力來滿足品牌在他們需要我們的地方以及他們需要我們的方式。

So we're focused on the long-term revenue potential here. We're very optimistic about it. It's a huge opportunity, $180 billion of ad spend ex-China and Russia, $25 billion alone on Connected TV. We know ad dollars follow engagement. We've got the most engaged audience. So we believe we're well positioned to capture some of that ad spend that shifts from linear to streaming.

因此，我們關注的是這裡的長期收入潛力。我們對此非常樂觀。這是一個巨大的機會，除中國和俄羅斯外，廣告支出達 1,800 億美元，其中光是連網電視就達 250 億美元。我們知道廣告收入取決於參與度。我們擁有最積極參與的觀眾。因此，我們相信我們處於有利位置，可以捕捉部分從線性轉向串流媒體的廣告支出。

Great. And Greg, any thoughts to Dan's question around launching an ads plan in other countries in addition to the 12 countries we're in today?

偉大的。 Greg，對於 Dan 提出的關於除了我們今天所在的 12 個國家/地區之外在其他國家/地區推出廣告計劃的問題，您有什麼想法嗎？

Thanks for reminding me on that one. I would say we have got a ton of work ahead of us on just getting to the level of maturity and impact to the business from the countries that we're operating in today. I would say, never say never on expanding beyond that, but it's worth noting that the countries that we are currently operating in represent about 80% of global ad spend. So we're already working in the spaces where there's the majority of opportunity. We'll see in the fullness of time, but I'd say we've got years of work ahead of us to take the ads business to the point where it's a material impact to our general business.

謝謝你提醒我這一點。我想說的是，我們還有大量的工作要做，才能達到成熟的水平以及對我們今天開展業務的國家/地區的業務產生影響。我想說的是，永遠不要說永遠不要超出這個範圍，但值得注意的是，我們目前開展業務的國家/地區約佔全球廣告支出的 80%。因此，我們已經在機會最多的領域開展工作。我們會在時間充裕時看到結果，但我想說，我們還需要多年的工作才能使廣告業務達到對我們的整體業務產生重大影響的程度。

Thank you, Greg. From Steve Cahall from Wells Fargo. How do you think about the efficacy of continuing to use a third-party relationship for ad sales versus the opportunity to invest in your own ad tech and ad sales infrastructure? Do you have a sense of what kind of investment would be required to transact more directly with advertisers?

謝謝你，格雷格。來自富國銀行的史蒂夫·卡霍爾。您如何看待繼續使用第三方關係進行廣告銷售的功效與投資自己的廣告技術和廣告銷售基礎設施的機會？您是否知道需要什麼樣的投資才能與廣告商進行更直接的交易？

Yes. And just to clarify, we are already in partnership with Microsoft developing part of the technology that supports our ads experience. So they've got a large team working on some of those features that I just mentioned, but we've got a smaller, but growing team, working on the areas where we can differentially contribute to. And then similarly on the ad sales and the go-to-market side of things, we're building out our own teams that cover a portion of the sales and operations activities.

是的。需要澄清的是，我們已經與 Microsoft 合作開發部分支援我們廣告體驗的技術。因此，他們有一個大型團隊致力於我剛才提到的一些功能，但我們有一個規模較小但不斷成長的團隊，致力於我們可以做出不同貢獻的領域。同樣，在廣告銷售和進入市場方面，我們正在建立自己的團隊，負責部分銷售和營運活動。

So I think you asked in terms of what's the size of investment, we have plans to continue to grow those teams. So those are both growing at a pretty strong clip and growing that investment. But we've modeled out where what we think we need. And even with those investment levels and the growth that we expect -- that we see, we expect the margins on the ad business to remain very high.

所以我想你問的是投資規模是多少，我們有計畫繼續發展這些團隊。因此，這些都在以相當強勁的速度成長，並且投資也在增加。但我們已經對我們認為需要的地方進行了建模。即使達到我們預期的投資水準和成長，我們預期廣告業務的利潤率仍將非常高。

Great. A question from Rich Greenfield on advertising. Later this week, T-Mobile's subscriber benefit called Netflix On Us, will convert to Netflix' ad tier unless subscribers upgrade to an ad-free tier? Is it reasonable to assume that your U.S. ad-supported subscriber base will roughly double as a result of this change? And assuming it is, how quickly will you be able to fill that inventory?

偉大的。 Rich Greenfield 關於廣告的問題。本週晚些時候，T-Mobile 名為 Netflix On Us 的訂戶福利將轉換為 Netflix 的廣告層，除非訂戶升級到無廣告層？是否可以合理地假設您的美國廣告支援用戶群將因這項變更而增加一倍？假設是這樣，您能多快填滿該庫存？

Yes. I won't get into the specifics of a particular deal or provide a forecast for a particular deal, but I'll just say that just as we've done for many, many years, leveraging partner channels is an important part of our subscriber growth strategy. We're applying the same techniques and approaches to scaling our ads membership. And we love having this additional tool. It's very effective, very useful for us because that lower consumer-facing price means that we got room now to bundle the ads plan into a set of lower-priced partner offerings where it was hard to make the economics work for everyone previously.

是的。我不會詳細介紹特定交易的具體情況，也不會提供特定交易的預測，但我只想說，正如我們多年來所做的那樣，利用合作夥伴管道是我們訂閱者的重要組成部分成長策略。我們正在應用相同的技術和方法來擴大我們的廣告會員規模。我們喜歡擁有這個額外的工具。這對我們來說非常有效、非常有用，因為面向消費者的較低價格意味著我們現在有空間將廣告計劃捆綁到一組價格較低的合作夥伴產品中，而以前很難讓經濟適用於所有人。

So it opens up a whole new range of opportunities. It's great for new members as well who are leveraging those bundles. They get a better plan than basic, more streams, higher resolution with downloads. And of course, the real benefit is they get access to all these amazing stories at a lower effective price through the bundle. So we really think of this as a win-win-win and we're going to continue to leverage these bundles going forward. And I think Rich asked how we think about -- how could we fill the supply. I mean when you're building -- growing as fast as we're growing right now, it creates a lot of challenges you might expect to then fill behind that. But I'd much rather be in that position where we're growing that inventory and then racing behind to fill it and improve our monetization than the reverse. So I'm happy to have that challenge.

因此，它開啟了一系列全新的機會。這對於使用這些捆綁包的新會員來說也非常有用。他們獲得了比基本計劃更好的計劃、更多的串流媒體、更高的下載解析度。當然，真正的好處是他們可以透過捆綁包以較低的有效價格訪問所有這些精彩的故事。因此，我們確實認為這是雙贏，我們將繼續利用這些捆綁包繼續前進。我認為里奇問了我們如何考慮——我們如何填補供應。我的意思是，當你正在建設時 - 與我們現在的增長速度一樣快，它會帶來很多你可能期望隨後解決的挑戰。但我更願意處於這樣的境地：我們增加庫存，然後競相填充它並提高我們的盈利能力，而不是相反。所以我很高興接受這個挑戰。

Super. I'll now move us along to a series of questions related to content. So Ted, from Jason Helfstein of Oppenheimer. Are you shifting the mix of your content spend to more licensed second-run content? And if so, how should we think about this mix impacting Netflix's operating margins?

極好的。現在我將引導我們討論一系列與內容相關的問題。所以泰德，來自奧本海默的傑森·赫夫斯坦。您是否正在將內容支出組合轉向更多授權的二輪內容？如果是這樣，我們應該如何看待這種組合對 Netflix 營運利潤率的影響？

So we've always had a healthy appetite for licensing content from others for our members. I don't see any meaningful change in that mix. And the current margin outlook contemplates a healthy mix between originals and licensed titles. It might be that we can deliver more on our programming spend with some licensed titles, but we also believe that we deliver an incredible amount of value, excitement and differentiation with our original series. Remember, our original series made up the number -- we're the #1 most watched original 48 to 52 weeks last year. So we really don't have any plans to move away from those investments.

因此，我們一直熱衷於為我們的會員授權其他人的內容。我沒有看到這種組合有任何有意義的變化。目前的利潤前景考慮了原創遊戲和授權遊戲之間的健康組合。也許我們可以透過某些授權遊戲在節目支出上提供更多，但我們也相信我們的原創系列可以提供令人難以置信的價值、興奮和差異化。請記住，我們的原創劇集彌補了這個數字 - 我們是去年 48 至 52 週收視率排名第一的原創劇集。因此，我們確實沒有任何計劃放棄這些投資。

Great. And another question for you, Ted, from Rich on content. While Netflix data clearly shows that new original movies outperformed licensed titles in terms of viewers and viewed hours, it doesn't appear that new movie -- those new movies are having the same cultural impact the TV series have. Do the recent management departures or the willingness of Hollywood Studios to license post theatrical movies on Netflix, signal any sort of meaningful shift in our film strategy towards licensing away from original production?

偉大的。泰德，里奇問你另一個關於內容的問題。雖然 Netflix 的數據清楚地表明，新的原創電影在觀眾數量和觀看時間長度方面優於授權電影，但新電影似乎並不具有與電視劇相同的文化影響力。最近管理層的離職或好萊塢電影公司願意在 Netflix 上授權院線後電影是否表明我們的電影策略發生了有意義的轉變，從原創製作轉向授權？

Yes. No, look, our original movies are attracting some of the biggest audiences in the world. Look at Leave the World Behind in Q4. Look at all those crazy names about the creepy deers they were all over the place when the movie came out or look at Society of the Snow from Spain right now this morning was nominated for 2 Oscars or even look back last year, Jennifer Lopez's great movie, The Mother. By some accounts, it was the most watched movie in the world last year. So I think about it that fans really don't care much about budgets and windows. They just want a movie that they love. They want a movie to make them cry or make them laugh or give them something great to talk about over dinner.

是的。不，看，我們的原創電影正在吸引世界上一些最大的觀眾。看看第四季的《把世界拋在身後》。看看電影上映時那些關於令人毛骨悚然的鹿的瘋狂名字，它們遍布各處，或者看看今天早上來自西班牙的《雪之社會》獲得了兩項奧斯卡提名，甚至回顧一下去年，詹妮弗·洛佩茲的偉大電影，母親。根據一些報道，這是去年世界上觀看次數最多的電影。所以我認為粉絲們真的不太關心預算和窗口。他們只是想要一部他們喜歡的電影。他們想要一部電影讓他們哭泣或讓他們發笑，或給他們一些在晚餐時談論的好東西。

As you pointed out, our original films do outperform those licensed films, and they do uniquely distinguish us from the competition. Just this morning, our original films got 18 Oscar nominations across 10 different films. So we do not plan to change our strategy or the mix. It's always going to be that kind of blend of first window, second window and deep catalog. We think that formula works best to entertain the world.

正如您所指出的，我們的原創電影確實優於那些授權電影，它們確實使我們在競爭中脫穎而出。就在今天早上，我們的原創電影獲得了 10 部不同影片中的 18 項奧斯卡提名。因此，我們不打算改變我們的策略或組合。它總是會是第一個視窗、第二個視窗和深層目錄的混合。我們認為這個公式最適合娛樂世界。

Great. And as a follow-up to that question around licensing, Ted, your competitors have largely abandoned their opposition to licensing catalog content in Netflix. We've seen, for example, NBC's Suits, HBO's Six Feet Under and more recently, a series of Disney TV titles on Netflix. Do you think your competitors should begin licensing you their new original series as well versus keeping them exclusively to their own streaming services?

偉大的。作為圍繞許可問題的後續行動，Ted，您的競爭對手基本上已經放棄了對 Netflix 目錄內容許可的反對。例如，我們已經看過 NBC 的《金裝律師》、HBO 的《六呎風雲》以及最近在 Netflix 上推出的一系列迪士尼電視節目。您認為您的競爭對手是否應該開始向您授權他們的新原創劇集，而不是將它們獨家保留在自己的串流媒體服務上？

Yes. I mean I guess I'd call you back to that history again and just say we've got a rich history of helping break some of the TV's biggest hits like Breaking Bad and Walking Dead or even more recently with Schitt's Creek. Because of our recommendation and our reach, we can resurrect a show like Suits and turn it into a big pop culture moment but also generate billions of hours of joy for our members. So I think you get to remember the studios have always been in the business of selling their content to others, including direct competitors for years.

是的。我的意思是，我想我會再次讓您回顧這段歷史，只是說我們在幫助打破一些電視熱門作品（如《絕命毒師》和《行屍走肉》）甚至最近的《Schitt's Creek》方面擁有豐富的歷史。由於我們的推薦和我們的影響力，我們可以復活像《金裝律師》這樣的節目，並將其變成一個重要的流行文化時刻，同時也為我們的會員帶來數十億小時的歡樂。因此，我認為您應該記住，多年來，工作室一直致力於向其他人（包括直接競爭對手）出售其內容。

I believe because, again, of our distribution heft and our recommendation system that sometimes we can uniquely add more value to Studios' IP than they can. Not all the time, but sometimes it does, and we're the best buyer for it. So I am thrilled that the studios are more open to licensing again, and I'm thrilled to tell them that we are open for business.

我相信，再次因為我們的發行量和推薦系統，有時我們可以比他們獨特地為工作室的 IP 增加更多價值。並非總是如此，但有時確實如此，而我們是它的最佳買家。因此，我很高興工作室再次對許可更加開放，我很高興告訴他們我們已開始營業。

Great. And a question on animation and animated features from Rich Greenfield as well for Ted is, Leo, Netflix's most successful animated film to date. It's been heavily watched based on our top 10 data. Is there any color you can provide on repeat viewing the film? And why has this animated feature film resonated versus other Netflix animated feature films?

偉大的。里奇格林菲爾德（Rich Greenfield）向泰德提出了一個關於動畫和動畫長片的問題，《獅子座》是 Netflix 迄今為止最成功的動畫電影。根據我們的前 10 名數據，它受到了廣泛關注。您可以提供重複觀看該影片時的任何顏色嗎？與其他 Netflix 動畫電影相比，這部動畫電影為何能引起共鳴？

I think Leo has resonated for the same reason that Sea Beast did last year. It's great. People really love it. It brings a lot of joy to families. And yes, they do watch them over and over again, which drives a lot of engagement, but also drives a lot of attachment. I think that Leo and Sea Beast are proof points that we have the flywheel to create original IP in that animated space, and there is so much appetite for animated feature. 7 of the top 10 most watched movies since Nielsen has been tracking streaming are animated features. So I'm super thrilled with Leo. We're kicking around the Leo 2 right now and it's a film that worked on so many levels.

我認為 Leo 引起共鳴的原因與去年 Sea Beast 的原因相同。這很棒。人們真的很喜歡它。它給家庭帶來很多歡樂。是的，他們確實一遍又一遍地觀看它們，這帶來了很多參與度，但也帶來了很多依戀。我認為《Leo》和《Sea Beast》證明了我們擁有在動畫領域創造原創 IP 的飛輪，而且人們對動畫長片的興趣如此之大。自從尼爾森追蹤串流媒體以來，觀看次數最多的 10 部電影中有 7 部是動畫電影。所以我對獅子座非常興奮。我們現在正在討論《Leo 2》，這是一部在許多層面上都發揮了作用的電影。

The animation -- the art of the animation is beautiful. The comedy is funny and families just really love it. So we look forward to a lot more. We have Spellbound coming up next year. We're just really thrilled with our -- that the animation team is now firing on all cylinders.

動畫－動畫的藝術很美。這部喜劇很有趣，家人都非常喜歡它。所以我們期待更多。明年我們也會推出《Spellbound》。我們對動畫團隊現在全力以赴感到非常興奮。

Moving along to engagement. This question is from Bryan Kraft of Deutsche Bank, and I'll direct this one to Ted. What have the engagement trends been like globally and domestically? Has it been steady, increasing or decreasing? And how has paid sharing impacted engagement per member?

繼續邁向訂婚。這個問題是德意志銀行的 Bryan Kraft 提出的，我會把這個問題轉給 Ted。全球和國內的參與趨勢如何？是穩定、增加還是減少？付費分享如何影響每位會員的參與度？

Yes. So we're really thrilled with our engagement trends domestically and globally. This is really a story about viewing moving from linear television to streaming. The story has been constant and it continues. It's also a story about Netflix kind of leading the way with professional film and television and now games. Our engagement is a bit impacted by our paid sharing. Think about it like fewer households using the same account. So as those folks spin off and get their own accounts and we win them over with our programming, that will normalize and continue to grow.

是的。因此，我們對國內和全球的參與趨勢感到非常興奮。這實際上是一個關於觀看從線性電視轉向串流媒體的故事。故事一直持續，而且還在繼續。這也是一個關於 Netflix 在專業電影和電視領域以及現在的遊戲領域中處於領先地位的故事。我們的參與度受到付費分享的影響。可以想像一下，使用相同帳戶的家庭越來越少。因此，當這些人分拆並獲得自己的帳戶並透過我們的節目贏得他們時，這種情況將會正常化並繼續增長。

We're really pleased with our engagement. We have shown you in graphic detail what that engagement looks like on a title-by-title basis in this engagement report we just released. And I think you see in that report about 2 hours of daily engagement with our members, which is great. And you've seen that some of our hits and even our near hits are attracting enormous audiences. So we have to keep pleasing them, and we have to do that in multiple languages, in multiple countries and all over the world. And that's -- that's we're excited about, and it's showing up in that engagement.

我們對我們的合作非常滿意。在我們剛發布的這份參與度報告中，我們以圖形方式詳細地向您展示了每個標題的參與度是什麼樣的。我想您會在該報告中看到我們的會員每天大約有 2 個小時的參與時間，這非常棒。您已經看到，我們的一些熱門歌曲甚至是幾近熱門的歌曲都吸引了大量觀眾。因此，我們必須不斷取悅他們，並且我們必須以多種語言、在多個國家和世界各地做到這一點。這就是我們感到興奮的地方，也反映在我們的參與中。

Great. Let's move on to gaming. A couple of questions on gaming. First from Justin Patterson at KeyBanc for Greg. The gaming portfolio expanded significantly last year and even added some more mainstream titles like Grand Theft Auto Trilogy. How are you thinking about sizing the investment in this area? How has engagement changed over the past year? And what are the signals you're evaluating to gauge when it's time to monetize?

偉大的。讓我們繼續遊戲。關於遊戲的幾個問題。首先來自 KeyBanc 的 Justin Patterson 為 Greg 提供的服務。去年，遊戲產品組合顯著擴大，甚至增加了一些更主流的遊戲，例如俠盜獵車手三部曲。您如何考慮調整該領域的投資規模？在過去的一年裡，參與度發生了什麼樣的變化？您正在評估哪些訊號來衡量何時需要貨幣化？

Yes. Well, we're stoked by the performance of GTA. We had high hopes, but it exceeded even those high hopes. So that's a -- it's a great place to be. So the biggest download and engagement numbers that we've seen so far. We were in the top mobile game downloads for several weeks, which shows it was not only big for us, but big numbers for mobile gaming in general. And beyond any specific title, we've tripled game engagement over the last year. So that's a solid growth trajectory for us.

是的。嗯，我們對 GTA 的表現感到興奮。我們曾經抱持著很高的期望，但它甚至超越了我們的期望。所以這是一個——這是一個很棒的地方。這是迄今為止我們所看到的最大的下載量和參與度。幾週來，我們一直位居手機遊戲下載量榜首，這表明它不僅對我們來說很重要，而且對整個手機遊戲也很重要。除了任何特定的遊戲之外，我們的遊戲參與度比去年增加了兩倍。所以這對我們來說是一個堅實的成長軌跡。

Games, it's a huge opportunity, $140 billion in consumer spend, ex-China and Russia. And we believe we can build games as strong components, and other content category to deliver entertainment value to our subscribers. But to your question on size of investment, we thought about this as we've got to allocate enough to the initiative to ensure that we're playing to win, that we have enough activity in the space that we're learning and growing, but also recognizing that we had a tremendous amount to learn and a tremendous set of institutional capabilities to develop.

遊戲是一個巨大的機會，除中國和俄羅斯外，消費者支出達 1400 億美元。我們相信我們可以將遊戲建構成強大的組件和其他內容類別，從而為我們的訂閱者提供娛樂價值。但對於你關於投資規模的問題，我們考慮了這一點，因為我們必須為該計劃分配足夠的資金，以確保我們能夠獲勝，我們在學習和成長的領域有足夠的活動，但我們也認識到，我們還有大量的知識需要學習，大量的機構能力有待發展。

And we wanted to make sure that we weren't growing that investment significantly before proving to ourselves that we can actually effectively translate that investment into member value. So things are going well. We continue to see this level of engagement growth and we continue to see what we've been seeing so far, which is evidence, as we would expect, that, that engagement leads to business benefits like increased retention, then we'll be able to scale that investment appropriately. Having said all of that, it's still, I'll use the early days, words that we love to use. And it's worth noting that our games investment is very small fraction of our overall content budget right now.

我們希望確保在向自己證明我們實際上可以有效地將投資轉化為會員價值之前，我們的投資不會大幅增加。所以事情進展順利。我們繼續看到這種程度的參與度成長，我們繼續看到我們迄今為止所看到的情況，正如我們所期望的那樣，這證明參與度會帶來商業利益，例如增加保留率，然後我們將能夠適當擴大投資規模。說了這麼多，我仍然會使用早期我們喜歡使用的字詞。值得注意的是，我們的遊戲投資目前只占我們整體內容預算的一小部分。

Great. Greg, a second question on gaming from Michael Packer of Wedbush. He asked, given the outperformance of Grand Theft Auto Trilogy on the Netflix service, will you reconsider your focus on games available exclusively on the service? Asking you will seek to emulate the success of Grand Theft Auto by offering games like Candy Crush or Fortnite on Netflix as well?

偉大的。 Greg，Wedbush 的 Michael Packer 提出了關於遊戲的第二個問題。他問道，考慮到《俠盜獵車手三部曲》在 Netflix 服務上的出色表現，你們會重新考慮專注於該服務上獨家提供的遊戲嗎？問您是否會效仿 Grand Theft Auto 的成功，在 Netflix 上提供 Candy Crush 或 Fortnite 等遊戲？

Yes. Licensing games, existing games with often with some form of exclusivity, that's been a key part of our strategy, and it's going to continue to be so. We've clearly seen, 1 of the things that we've learned is that recognizable games, that's either existing popular game titles or game franchises or games that are based on well-known IP, and in many cases, that's IP from our own films and series, those are the ones that are working the best for us right now. So we're going to continue to find the right opportunities to bring those kind of titles to our members. We're going to look for more great licensing and some exclusive licensing, so we can do things more like what you've seen us do last quarter with GTA, but also other titles like Football Manager 2024, which performed very well for us. Money Heist or La Casa de Papel, which was great. You'll see it this quarter with titles like Virgin River, so that's definitely the strategy that we're on, and you'll see us do more of that work.

是的。授權遊戲、現有遊戲通常具有某種形式的排他性，這是我們策略的關鍵部分，並將繼續如此。我們清楚地看到，我們學到的一件事是可識別的遊戲，即現有的流行遊戲或遊戲特許經營權或基於知名IP的遊戲，在許多情況下，這是我們自己的IP電影和電視劇，這些是目前最適合我們的。因此，我們將繼續尋找合適的機會，為我們的會員帶來此類頭銜。我們將尋找更優秀的授權和一些獨家授權，這樣我們就可以做更多像您在上季度看到的《GTA》那樣的事情，但也可以做其他遊戲，例如《足球經理2024》，它對我們來說表現非常好。 《金錢搶劫》或《紙之家》都很棒。這個季度你會看到像 Virgin River 這樣的遊戲，所以這絕對是我們正在採取的策略，你會看到我們做了更多的工作。

Great. We have a question also from John Hodulik of UBS. This one, I'll point to Greg, but Spence, you can feel free to join in as well. The question is, how should we think about pricing changes in the rest of the world now that you are through the majority of the password sharing implementation and in light of the recent price adjustments in the U.S., U.K. and France?

偉大的。我們也收到了瑞銀 (UBS) 約翰‧霍杜利克 (John Hodulik) 的提問。這個，我會指格雷格，但斯彭斯，你也可以隨意加入。問題是，既然您已經完成了大部分密碼共享實施，並且考慮到美國、英國和法國最近的價格調整，我們應該如何考慮世界其他地區的價格變化？

Yes. As we had talked about previously, we largely put price increases on hold while we were rolling out the paid sharing work because we saw that as a form of substitute price increase. Now that we're through that, we're able to resume our sort of standard approach towards price increases. You've seen us do that in the U.S., U.K. and France. Those changes went well, better than we forecasted. And we'll continue to then monitor other countries and try and assess when we've delivered enough additional entertainment value, we look at engagement retention acquisition as a signals there. so that we can go back to members and ask them to pay a bit more to keep that positive flywheel going.

是的。正如我們之前談到的，在推出付費共享工作時，我們基本上暫停了價格上漲，因為我們認為這是替代價格上漲的一種形式。現在我們已經解決了這個問題，我們可以恢復我們的標準漲價方法。您已經看到我們在美國、英國和法國這樣做了。這些變化進展順利，比我們預期的還要好。然後，我們將繼續監控其他國家，並嘗試評估我們何時提供了足夠的額外娛樂價值，我們將參與保留獲取視為那裡的訊號。這樣我們就可以回到會員那裡，要求他們多付一點錢，以保持積極的飛輪運作。

And we can invest in more great film series and games for those members. So the summary statement might be back to business as usual. And Spence, I don't know if you wanted to add anything there?

我們可以為這些會員投資更多精彩的電影系列和遊戲。因此，總結聲明可能會恢復正常。斯彭斯，我不知道你是否想在那裡補充什麼？

I think you nailed it, you're on a roll. So it's good.

我想你已經成功了，你進展順利。所以這很好。

Great. I'll move us along now to a couple of questions on competition and the competitive landscape. The first question comes from Maria Ripps of Canaccord Genuity. With ads coming to Prime video at the end of this month, and given Amazon is making it the default option for its prime members, could you talk about how you are positioning Netflix relative to the competition when you're speaking with advertisers? Could you also comment on if Netflix considered making the ad tier the default option similar to Amazon? And what were some of the puts and takes about that decision? So I'll turn that one over to you, Greg.

偉大的。現在我將引導我們討論幾個有關競爭和競爭格局的問題。第一個問題來自 Canaccord Genuity 的 Maria Ripps。隨著本月底將在 Prime 影片上投放廣告，並考慮到亞馬遜將其設為其 Prime 會員的預設選項，您能否在與廣告商交談時談談您如何定位 Netflix 相對於競爭對手的地位？您能否評論一下 Netflix 是否考慮將廣告層級設定為類似於亞馬遜的預設選項？關於這個決定的一些看法和看法是什麼？所以我會把這個交給你，格雷格。

Yes. We did consider making it the default option. But given our long history of not having ads, we thought it was better for our members rather than force them into a change and give them ads. But better to attract them to the ads plan for the ones that wanted it based on the benefits, more streams, higher resolution downloads and of course, the lower price to be able to access all these incredible stories. So I mentioned the growth numbers we were seeing previously and the rate of growth we are on. So I think that approach is generally working well for our members, and we haven't seen any big backlash as a result, which is positive as well.

是的。我們確實考慮過將其設為預設選項。但考慮到我們長期以來沒有廣告的歷史，我們認為這對我們的會員來說更好，而不是強迫他們做出改變並提供廣告給他們。但更好的是吸引他們加入廣告計劃，為那些想要它的人提供基於好處、更多的串流、更高解析度的下載，當然還有能夠訪問所有這些令人難以置信的故事的更低的價格。所以我提到了我們之前看到的成長數字以及我們目前的成長率。所以我認為這種方法總體上對我們的會員來說效果很好，而且我們沒有看到任何大的反彈，這也是積極的。

And then in terms of competitive positioning, probably the most important thing to start with is the market's big, right? We talked about over $25 billion in CTV ad spend alone. So there's room for multiple players, clearly. And when we think about how we compete for some of that ad spend, I really think we need to play with it to our strengths. We've got an incredibly engaged audience, the most engaged audience who are watching the most culture-defining films, series and live events. That is an important place for brands to be, and it's something that differentiates us from our competitors. So that's the space that we're going to play in.

那麼就競爭定位而言，最重要的可能就是市場大，對吧？我們談到光是 CTV 廣告支出就超過 250 億美元。顯然，這裡有容納多個玩家的空間。當我們考慮如何爭奪部分廣告支出時，我真的認為我們需要發揮我們的優勢。我們擁有非常投入的觀眾，最投入的觀眾正在觀看最具文化定義的電影、連續劇和現場活動。這是品牌的重要地位，也是我們與競爭對手的差別。這就是我們要玩的空間。

Super. Another question on competition. This one probably best for Ted and Spence to take. It comes from Eric Sheridan from Goldman Sachs. How does the current competitive landscape or content impact the trajectory of Netflix's own content spending in 2024 and beyond? Is it possible that the company could widen its competitive moat on the same or lower absolute amount of content spend?

極好的。另一個關於競爭的問題。這可能是 Ted 和 Spence 最好的選擇。它來自高盛的埃里克·謝裡丹。目前的競爭格局或內容如何影響 Netflix 2024 年及以後內容支出的軌跡？該公司是否有可能在相同或更低的內容支出絕對金額上擴大其競爭護城河？

I think it's always been a competitive place for the top programming. I think that will continue. And that's really what I think what you're talking about is whether when the top titles come to market when the big packages come and everyone's duking it out for them is going to remain to be pretty competitive. I think that we are reinvesting at a very healthy rate. We see that in the engagement. We see that in the retention, and we see that in the subscriber growth. So I don't think this would be the time to try to test that. And Spence, I don't know if you think differently, but...

我認為它一直是頂級編程的競爭場所。我認為這種情況將會持續下去。我認為你真正談論的是，當頂級遊戲進入市場時，當大包到來時，每個人都在為它們一決高下，這是否會保持相當的競爭力。我認為我們正在以非常健康的速度進行再投資。我們在訂婚中看到了這一點。我們在保留率和訂戶成長中看到了這一點。所以我認為現在不是嘗試測試這一點的時候。斯彭斯，我不知道你是否有不同的想法，但...

Yes. I would just say -- just to reinforce that, I mean, we've seen the benefits over time of continuous improvement, great execution and focus and kind of gradually building our business and doing it really well and thrilling our members. And so you see it like we are increasing our content spend and coming out of the strikes in '23. We're trying to get back up to as much as $17 billion of cash content spend this year. And as we've also said over the last few years as we kind of reaccelerate our revenue growth, which we're seeing in the business, we hope to sustain that healthy revenue growth, grow profit and profit margins over time and then reinvest a good portion of that back in the business, which means increasing our content spend.

是的。我只想說- 只是為了強調這一點，我的意思是，隨著時間的推移，我們已經看到了持續改進、出色的執行力和專注以及逐步建立我們的業務並做得很好並讓我們的會員感到興奮所帶來的好處。所以你會看到我們正在增加內容支出並擺脫 23 年的罷工。今年我們正努力將現金支出恢復到 170 億美元。正如我們在過去幾年中所說的那樣，隨著我們在業務中看到的收入成長的重新加速，我們希望維持健康的收入成長，隨著時間的推移增加利潤和利潤率，然後再投資其中很大一部分回到了業務中，這意味著增加我們的內容支出。

So we do plan to do that, but we want to do it in a smart, judicious, responsible way. And obviously, today's even announcement with WWE is a case in point. We believe we have room to do that while still staying very disciplined in terms of our overall content spend in our business performance.

所以我們確實計劃這樣做，但我們希望以聰明、明智、負責任的方式做到這一點。顯然，今天與 WWE 一起宣布的消息就是一個很好的例子。我們相信我們有空間做到這一點，同時在我們的業務績效中的整體內容支出方面仍然保持嚴格的紀律。

Yes. I think the perception of overserving thrilling content to our members has served us pretty well.

是的。我認為向我們的會員過度提供令人興奮的內容的觀念對我們很有幫助。

Yes. And we've got lots of room to grow, obviously. And so we just want to do it in a disciplined way.

是的。顯然，我們還有很大的成長空間。所以我們只想以一種有紀律的方式來做這件事。

No question.

沒有問題。

Yes. Another question from Eric Sheridan from Goldman Sachs. A bigger picture question. Given the scale of audience that has been built by Netflix, how do you think about the potential for new areas to widen your exposure to verticals or formats of media consumption? I think maybe Eric is referring to short-form content or, things like that, Ted.

是的。高盛的艾瑞克·謝裡丹提出了另一個問題。一個更大的問題。鑑於 Netflix 已建立的受眾規模，您如何看待新領域擴大您對媒體消費垂直或格式的接觸的潛力？我想埃里克可能指的是簡短的內容，或類似的東西，泰德。

I would kind of call back to something that Greg alluded to earlier. In the areas of business that are in our core, movies, television and now games, the -- that business, we're getting -- we're capturing about 5% of consumer spending. In our most mature markets, we're getting about 10% of TV time. So in our very core business, we still have an enormous room to grow. So when I look at that, it doesn't make me think about searching for more inorganic growth in different kinds of programming. There's so much room to grow in this bit of programming that we're kind of hopefully getting better and better at it for our members every day.

我想回顧一下格雷格之前提到的事情。在我們的核心業務領域，電影、電視和現在的遊戲，我們正在獲得的業務領域，我們佔據了大約 5% 的消費者支出。在我們最成熟的市場，我們獲得了大約 10% 的電視時間。因此，在我們的核心業務中，我們仍然有巨大的成長空間。因此，當我看到這一點時，它並沒有讓我考慮在不同類型的程式設計中尋找更多的無機成長。這個項目有很大的發展空間，我們希望每天都能為我們的會員做得越來越好。

So there's a lot of adjacent businesses that are not necessarily competitive and are certainly complementary in some ways. Some of those platforms that you're talking about maybe in the user-generated space have turned out to be great marketing tools for our professional content. So I think we're rightfully focused, I think, on the core of professional storytelling.

因此，有許多相鄰的業務不一定具有競爭力，但在某些方面肯定是互補的。您所談論的一些可能在用戶生成空間中的平台已被證明是我們專業內容的出色行銷工具。所以我認為我們正確地關注專業講故事的核心。

Great. I'm going to move this over to a few questions around capital allocation. The first is from Brian Pitz of BMO Capital Markets. Basically, the question for Spence is, can you help us frame your M&A views over the next 12 months? Is there the possibility for mobile gaming, aqua-hire or what other sorts of M&A activity would Netflix be interested in?

偉大的。我將把這個問題轉移到有關資本配置的幾​​個問題。第一個來自 BMO 資本市場的布萊恩‧皮茨 (Brian Pitz)。基本上，Spence 的問題是，您能幫助我們制定您未來 12 個月的併購觀點嗎？ Netflix 是否有可能對手機遊戲、水產租賃或其他類型的併購活動感興趣？

Well, thanks, Brian. We're not going to speculate on kind of potential M&A activity. But as you know, our historical bias is to build and not buy. We try to be very responsible in terms of our capital allocation philosophy. We hold a modest amount of debt. We're currently holding $10 billion to $15 billion of gross debt. We fully fund our business and new initiatives. You see that in terms of our investment into ads, into live, into games, while still growing the business. And we'll look at selective accelerators to that organic growth. We have done that. But we're not interested in some of the big linear assets that may or may not be available. We also noticed that -- noted that in the letter. And so I think that's how you should kind of think about our -- what's out there to go after.

嗯，謝謝，布萊恩。我們不會猜測潛在的併購活動。但如您所知，我們的歷史偏見是建造而不是購買。我們努力在資本配置理念方面非常負責。我們持有少量債務。我們目前持有 100 億至 150 億美元的總債務。我們為我們的業務和新措施提供全額資金。你可以看到我們在廣告、直播、遊戲方面的投資，同時仍在發展業務。我們將研究有選擇性的有機成長加速器。我們已經做到了。但我們對一些可能可用或可能無法使用的大型線性資產不感興趣。我們也注意到──在信中註意到了這一點。所以我認為這就是你應該如何思考我們要追求的目標。

And staying with you, Spence, another question on the capital allocation. This one coming from Alan Gould of Loop Capital. We know your general rule of thumb is to have cash equal to 2 months of revenue. How big of a factor is the current stock price and your buyback activity and some of your debt begins maturing over the next few years? What do you believe is the optimal leverage ratio to maximize shareholder value?

史賓塞，還有一個關於資本配置的問題。這是來自 Loop Capital 的艾倫·古爾德 (Alan Gould) 的。我們知道您的一般經驗法則是擁有相當於 2 個月收入的現金。目前的股價、您的回購活動以及您的部分債務在未來幾年內開始到期有多大影響？您認為實現股東價值最大化的最佳槓桿率是多少？

Yes, sure. So I'm glad you asked because I missed the last piece of our capital allocation philosophy, which is to hold about 2 months of revenue in the form of cash on the balance sheet and then to return the excess cash to shareholders over time. We've done that in the form of buyback. And so with a little over kind of $7 billion of cash on the balance sheet at the end of the year. And with, as you say, the kind of the -- our expectation for strong cash flow build in the year, roughly $6 billion is what we're projecting at current FX rates for 2024. You can expect that we'll continue to return excess cash to shareholders through the buyback.

是的，當然。所以我很高興你問這個問題，因為我錯過了我們資本配置理念的最後一部分，即在資產負債表上以現金形式持有大約兩個月的收入，然後隨著時間的推移將多餘的現金返還給股東。我們以回購的形式做到了這一點。因此，到年底資產負債表上的現金略多於 70 億美元。正如您所說，我們對今年強勁現金流的預期是，按當前匯率計算，2024 年的現金流量約為 60 億美元。您可以預期我們將繼續回報透過回購向股東提供多餘現金。

We don't try to time the kind of stock price. So we really are caught in more in a, call it, more of a price averaging sort of approach and that we buy back over time as we have excess cash.

我們不會試著計算股票價格的時間。因此，我們確實更多地陷入了所謂的價格平均方法中，隨著時間的推移，我們會因為擁有多餘的現金而回購股票。

And then in terms of optimal leverage ratio, look, we -- we are fortunate to you have continued to strengthen our balance sheet. We had a recent upgrade from Moody's in Q4. We continue to grow into that investment-grade balance sheet. But we we're pretty intentionally underleveraged, frankly. We think the optimal -- without getting overly specific, we think -- essentially, as I said, our capital allocation strategy has served us well and that philosophy served us well over the past handful of years. And we think that flexibility in the balance sheet also serves us well to adapt to a quite dynamic industry.

然後就最佳槓桿率而言，我們——我們很幸運，你們繼續加強我們的資產負債表。穆迪最近在第四季度對我們進行了升級。我們繼續發展投資等級資產負債表。但坦白說，我們是故意降低槓桿的。我們認為最優的——我們認為，但沒有過於具體——本質上，正如我所說，我們的資本配置策略對我們很有幫助，而且這種理念在過去幾年裡對我們很有幫助。我們認為，資產負債表的彈性也有助於我們適應一個充滿活力的產業。

Great. I think we'll wrap up with 1 final question. It's actually 1 question we've gotten from several different analysts. And in the spirit of WWE, probably a good one for Ted and Greg to tag team on. The question is, what are your key 2024 priorities? Maybe, Greg, first to you?

偉大的。我想我們將以最後一個問題結束。這實際上是我們從幾位不同的分析師那裡得到的問題。本著 WWE 的精神，對於泰德和格雷格來說，這可能是一個很好的標記團隊。問題是，您 2024 年的主要優先事項是什麼？也許，格雷格，首先對你來說？

Sure. I think you've heard us express this multiple times this call. But we just -- we see so much potential and so much opportunity ahead of us in our core business. We got hundreds of millions of qualified households out there that are still yet to sign up for Netflix. I can't believe it, but they're there, and we've got to win them over. There's many hours, like billions of hours of TV time that we are not currently winning. Growing along those 2 dimensions, more households and more moments of truth. We call them more entertainment value delivered is the key priority for us.

當然。我想您已經在這次電話會議中多次聽到我們表達過這一點。但我們只是——我們在核心業務中看到了巨大的潛力和機會。我們有數億尚未註冊 Netflix 的合格家庭。我不敢相信，但他們就在那裡，我們必須贏得他們的支持。我們目前還沒有贏得很多時間，例如數十億小時的電視時間。沿著這兩個維度成長，更多的家庭和更多的關鍵時刻。我們稱他們為我們提供更多娛樂價值是我們的首要任務。

We want to improve our entertainment offering to do that. That means delivering more stories that our members love. Films, series, games, now live events. That's the key to that success. And then on top of that, we're focusing on improving how we translate all that additional entertainment value into revenue and improved operating margin. It means growing our ads business. It means growing general plans and pricing optimization. That's the major area of work there. So that's where we're going to be focused on for 2024, and we're super excited to do it. So with that, I'm -- I'll tag team to my partner and co-CEO.

為此，我們希望能改進我們的娛樂產品。這意味著要提供更多我們的會員喜歡的故事。電影、電視劇、遊戲，現在還有現場活動。這是成功的關鍵。最重要的是，我們專注於改進如何將所有額外的娛樂價值轉化為收入並提高營運利潤率。這意味著發展我們的廣告業務。這意味著不斷制定總體計劃和優化定價。這是那裡的主要工作領域。這就是我們 2024 年要關注的重點，我們對此感到非常興奮。因此，我將把團隊標記為我的合作夥伴兼聯合執行長。

We'll do that instead of a sleeper hold. Look, I think everything you said is 100%, Greg, and I think it all is built on the foundation of movies and TV Series and games that people love, can't live without, talk about, can't wait to get back to post about that drives the conversation, that drives this love for programming and entertainment. So we're to start with that with next week. Greiselda, brand new show from the makers of Narcos starring Sofia Vergara, that's insane. It's so good. Following the success of one piece, we've got a brand-new Avatar, The Last Air Bender coming for fans. We've got the 3 Body Problem based on one of the top-selling science fiction books of all time from the creators of Game of Thrones.

我們會這樣做，而不是臥舖等待。看，我認為你所說的一切都是 100%，格雷格，我認為這一切都是建立在人們喜愛、離不開、談論、迫不及待回來的電影、電視劇和遊戲的基礎上的發布相關內容會推動對話，推動人們對程式設計和娛樂的熱愛。所以我們將從下週開始。 《Greiselda》是《毒梟》製片人的全新劇集，由索菲亞·維加拉主演，太瘋狂了。它是那麼好。繼一件作品獲得成功之後，我們又為粉絲們帶來了全新的阿凡達《最後的氣宗》。我們的《三體問題》改編自《權力的遊戲》創作者有史以來最暢銷的科幻小說之一。

We have a new show from the U.K., from Guy Ritchie called The Gentleman that's insanely fun. And we're back with returning seasons of Bridgerton, of Emily in Paris, of Diplomat, of Squid game. And on top of that, great movies, like the second part of Rebel Moon coming up, Damsel with Millie Bobby Brown, Jennifer Lopez's new film, Atlas, Hitman which drove everybody crazy at Sundance last night. And Eddie Murphy in Beverly Hills Cop 4: Axel Foley and so much more. It's just -- it's so fun and this is a never-ending mission to continue to improve this for our members and make sure that we're bringing them all the joy that we can.

我們有一部來自英國的新劇，由蓋·里奇製作，名為《紳士》，非常有趣。我們帶著《布里奇頓》、《艾蜜莉在巴黎》、《外交官》和《魷魚遊戲》的回歸季回歸。除此之外，還有精彩的電影，像是即將上映的《叛逆月亮》第二部、《少女與米莉鮑比布朗》、珍妮佛洛佩茲的新片《阿特拉斯》、《殺手》，昨晚在聖丹斯電影節上讓每個人都為之瘋狂。還有《比佛利山莊刑警 4：阿克塞爾·弗利》中的艾迪·墨菲等等。只是——這太有趣了，這是一項永無止境的使命，繼續為我們的會員改進這一點，並確保我們為他們帶來我們所能帶來的所有快樂。

I want to thank all the teams at Netflix, who have made that possible in 2023 and will in 2024. So I'm very excited, and I'll throw it back to you, Spencer.

我要感謝 Netflix 的所有團隊，他們在 2023 年和 2024 年讓這一切成為可能。所以我非常興奮，我會把它還給你，斯賓塞。

Awesome. Thank you so much, Ted. Thank you, Greg. Thank you, Spence, for answering the questions from analysts. I also want to thank our audience for tuning into our first ever live-streamed video format. We look forward to your feedback and in the spirit of continuous improvement and Netflix on everything, we look forward to getting better at this over time. So thank you all again, and we'll see you next quarter.

驚人的。非常感謝你，泰德。謝謝你，格雷格。謝謝斯賓塞回答分析師的問題。我還要感謝我們的觀眾收看我們的第一個直播視訊格式。我們期待您的回饋，並本著 Netflix 不斷改進的精神，我們期待著隨著時間的推移，我們會在這方面變得更好。再次感謝大家，我們下季再見。

Thank you, everybody.

謝謝大家。