Netflix Inc (NFLX) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the Netflix Q1 2024 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.

下午好，歡迎收看Netflix 2024財年第一季財報訪談。我是財務、投資關係和企業發展副總裁Spencer Wang。今天與我一同接受採訪的還有聯合執行長Ted Sarandos和Greg Peters，以及財務長Spence Neumann。

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

再次提醒，我們將發表一些前瞻性聲明，實際結果可能會有所不同。

With that, we will now take questions that have been submitted by the analyst community. And we'll begin first with some questions about paid membership reporting and our results and forecast.

接下來，我們將回答分析師社群提交的問題。首先，我們將回答一些關於付費會員報告、績效和預測的問題。

So for our first question, it comes from Justin Patterson of KeyBanc. And, I'll direct this at Greg initially. Greg, could you please talk about the decision to stop reporting quarterly membership in ARM data in 2025? Why eliminate this? And since you said success stems -- starts with engagement, how are you thinking of expanding these disclosures?

第一個問題來自KeyBanc的Justin Patterson。我先問Greg。 Greg，您能否談談2025年停止公佈ARM季度會員資料的決定？為什麼要取消這項數據？您說過成功源自於－或者說始於參與，那麼您打算如何擴大這些資訊揭露的範圍？

Yes. As we noted in the letter, we've evolved and we're going to continue to evolve, developing our revenue model and adding things like advertising and our extra member feature, things that aren't directly connected to number of members.

是的。正如我們在信中提到的，我們已經發展並將繼續發展，完善我們的收入模式，並增加廣告和額外會員功能等與會員數量沒有直接關係的內容。

We've also evolved our pricing and plans with multiple tiers, different price points across different countries. I think those price points are going to become increasingly different. So each incremental member has a different business impact, and all of that means that, that historical simple math that we all did, number of members times the monthly price, is increasingly less accurate in capturing the state of the business.

我們也對定價和套餐進行了調整，推出了多層套餐，不同國家的價格也各不相同。我認為這些價格差異會越來越大。因此，每增加一位會員，對業務的影響都會有所不同。所有這些都意味著，過去我們常用的簡單計算方法——會員數量乘以月費——越來越難以準確反映業務狀況。

So this change is really motivated by wanting to focus on what we see are the key metrics that we think matter most to the business. So we're going to report and guide on revenue, on OI, OI margin, net income, EPS, free cash flow. We'll add a new annual guidance on our revenue range to give you a little bit more of a long-term view.

這項調整的真正動機在於，我們希望專注於我們認為對業務至關重要的關鍵指標。因此，我們將報告並指引營收、營業利潤率、營業利潤率、淨利潤、每股收益和自由現金流。我們還將新增年度營收預期範圍，以便您更了解長期發展趨勢。

We'll also -- we're not going to be silent on members as well. We'll periodically update when we grow and we hit certain major milestones, we'll announce those. It's just not going to be part of our regular reporting. We want to do all of this thoughtfully and give everyone time to adjust this transition. So we're going to continue to report subscribers until Q1 of next year, which links into our next annual revenue guidance for 2025. So we think that provides long-range continuity, and we expect that will provide an effective bridge and transition. But ultimately, we think this is a better approach that reflects the evolution of the business, and it more matches and is consistent with how we manage internally to engagement, revenue and profit.

我們也不會對會員數保持沉默。我們會定期更新會員數量，並在達到某些重要里程碑時進行公佈。但這不會納入我們的常規報告。我們希望謹慎行事，並給每個人時間來適應這一轉變。因此，我們將繼續發布訂閱用戶數量報告，直至明年第一季度，這與我們2025年的年度營收預期相銜接。我們認為這能夠確保長期的連續性，並有望實現有效的過渡。但最終，我們認為這是一種更能反映業務發展趨勢的更佳方式，也更符合我們內部對使用者參與、營收和利潤的管理方式。

Yes. And on engagement, Greg, as a reminder, we currently report our engagement on our biannual engagement report, leading the industry and viewing transparency and granularity. And we're going to look into building on that both in granularity, which would be kind of tough. We -- our current report covers about 99% of the viewing on Netflix, but we'll look at the regularity in different ways that we can make it even easier to track our progress on engagement.

是的。關於用戶互動，格雷格，提醒一下，我們目前透過半年一次的用戶互動報告來展示我們的用戶互動情況，這在業內領先，數據透明度和精細度也更高。我們將研究如何進一步提升數據的精細度，這確實有點難度。我們目前的報告涵蓋了Netflix上約99%的觀看量，但我們會從不同角度分析數據規律，以便更輕鬆地追蹤用戶互動方面的進展。

And -- but importantly, why we focus on engagement is because we believe it's the single best indicator of member satisfaction with our offering, and it is a leading indicator for retention and acquisition over time. So happy members watch more. They stick around longer. They tell friends, which all grows engagement, revenue and profit, our North Stars. And so -- and we believe that those are the measurements of success in streaming.

而且——更重要的是——我們之所以關注用戶參與度，是因為我們相信它是衡量會員對我們服務滿意度的最佳指標，也是長期留存和用戶獲取的領先指標。滿意的會員觀看時間更長，停留時間更長，也會推薦給朋友，所有這些都有助於提升用戶參與度、收入和利潤，而這些正是我們追求的目標。因此——我們相信，這些才是衡量串流媒體成功與否的標準。

Great. Thank you, Ted and Greg. I'll move us along to the next question from Ben Swinburne of Morgan Stanley, who asked 2 years ago, Netflix stopped adding members. What changes inside Netflix and/or the broader industry explain the significant improvement in member growth we're seeing today, excluding the paid sharing initiative? In other words, what are you doing better today as a company than in the first half of 2022?

好的。謝謝Ted和Greg。接下來，我們來回答摩根士丹利的Ben Swinburne提出的下一個問題。兩年前他問過，Netflix停止了新增會員。撇開付費分享計畫不談，Netflix內部和/或整個產業發生了哪些變化，才導致了我們今天看到的會員成長顯著提升？換句話說，與2022年上半年相比，你們公司現在在哪些方面做得更好？

That's a great question. I would say the thing we're doing is we're thrilling our members. That's the thing we set out, and it's why we all bounce out of bed in the morning. I look at this last quarter. Eight of the first 11 weeks of the year, we've had the #1 film on streaming. Nine of the first 11 weeks, we've had the #1 original series, and I'm talking about hits like Avatar: The Last Airbender, Griselda, Damsel, Love Is Blind, 3 Body Problem. all of that just in the last few months. So this consistent and dependable and expected drumbeat of hit shows, films and games, that's the business that we're in. And that's what we have to do every day, and we have to do it all over the world.

這是一個很好的問題。我想說，我們正在做的就是讓我們的會員感到興奮。這是我們最初的目標，也是我們每天早上充滿動力起床的原因。看看上個季度，今年前11周里，有8週我們的電影都位居串流媒體榜首；前11周里，有9週我們的原創劇集都位居榜首，我說的是像《降世神通：最後的氣宗》、《格里塞爾達》、《少女》、《愛情盲選》、《三體》這樣的熱門作品。所有這些都是在過去幾個月中取得的成就。所以，持續不斷地推出熱門影集、電影和遊戲，這就是我們所處的產業。這也是我們每天都必須做的事情，而且我們必須在世界各地都做到這一點。

So if you think about that and how we're doing about kind of quality and scale in multiple cultures, in multiple regions, I look at this last quarter, you see Fool Me Once, One Day, Gentlemen, Scoop, [The Super Buzzy], Baby Reindeer, all that from the U.K. all in the last few months. Berlin, Society of the Snow, Alpha Males, all from Spain and all just in the last few months. So that's been one of those things that we just keep building and building and building on and local unscripted, which is a fairly new initiative for us, and we're finding huge success with things like our second season of Physical 100 in Korea recently and Love is Blind Sweden. These are all kind of hard-to-replicate things that we keep getting better and better at every day that we're really proud of the teams for doing that. So -- and remember, engagement captures all of this, and none of that's possible without great tech and product. We need to do both.

所以，想想我們在多種文化、多個地區如何兼顧品質和規模，看看上個季度，你會發現英國的《Fool Me Once》、《One Day》、《Gentlemen》、《Scoop》、《The Super Buzzy》、《Baby Reindeer》都是最近幾個月推出的。西班牙的《Berlin》、《Society of the Snow》、《Alpha Males》也是最近幾個月推出的。我們一直在不斷努力，在本地化非劇本節目方面持續發展壯大。這對我們來說是一個相當新的嘗試，而且我們取得了巨大的成功，例如最近在韓國推出的《Physical 100》第二季和瑞典版的《Love is Blind》。這些都是很難複製的項目，我們每天都在不斷進步，我們為團隊的努力感到非常自豪。記住，用戶參與度決定了這一切，而這一切都離不開優秀的技術和產品。我們需要兩者兼顧。

Yes, I think that's right. I mean the fundamental is all those amazing series, film, games, live events. But a key component of our success and something that we're seeking to get constantly better at is that ability to find audiences for all those great titles. Part of making that happen is just the number of people who look to us for entertainment. We mentioned over 0.5 billion people in this letter. But part of that is that product we do to effectively connect those folks with titles that they will love, which then enables us to find the largest audiences for those titles that we think that they could get anywhere. And I think, as you mentioned, Ted, this applies globally to titles from all over the world, which is super exciting.

是的，我覺得你說得對。我的意思是，最根本的是那些精彩的劇集、電影、遊戲和現場活動。但我們成功的關鍵要素之一，也是我們不斷努力提升的方面，是為所有這些優秀作品找到受眾的能力。實現這一點，一部分原因在於有大量用戶選擇我們來獲取娛樂。我們在信中提到了超過5億人。但這部分原因在於我們開發的產品能夠有效地將這些人與他們喜愛的作品聯繫起來，從而使我們能夠為這些作品找到我們認為它們能夠觸及的最大受眾。而且我認為，正如你所提到的，泰德，這一點適用於全球範圍內的作品，這真是令人無比興奮。

So -- and then, of course, we seek to maximize the fandom and the impact on the conversation and the cultural zeitgeist that all those titles have. And when we do that well, that just feeds positively into that cycle as we launch new titles. So in terms of what are we doing better, what do we do better, we seek to get better at all of those things. And if we can make that whole flywheel spin a little bit faster, then that's great for our members. It's great for our titles, and it's great for creators.

所以——當然，我們力求最大限度地擴大粉絲群體，提升作品在討論和文化思潮中的影響力。當我們在這方面做得好時，這會促進新作品的推出，形成良性循環。因此，在如何做得更好、如何改進方面，我們力求在所有這些方面都做得更好。如果我們能讓整個良性循環運作得更快一些，那對我們的會員、作品和創作者來說都是好事。

Thank you, Ted and Greg. Moving us along, we have Barton Crockett from Rosenblatt. There's a question about our revenue guidance, so I will direct this question to Spence. Spence, can you please explain what drives the revenue deceleration for the full year, so 13% to 15% revenue growth through the full year compared with the 15% to 16% growth in the first and second quarters of this year? Secondly, he also has a question about second quarter subscriber growth. Will that be higher or lower than Q2 of 2023?

謝謝Ted和Greg。接下來，我們請到了Rosenblatt公司的Barton Crockett。他有一個關於我們營收預期的問題，所以我把這個問題轉給Spence。 Spence，你能解釋一下全年營收成長放緩的原因嗎？也就是說，全年營收成長率預計在13%到15%之間，而今年第一季和第二季的成長率為15%到16%。另外，他也問了一個關於第二季用戶成長的問題。這個數字會高於還是低於2023年第二季？

All right. Sure. Well, thanks for the question. So first, regarding revenue growth overall, full year outlook, I feel really good about where we are in our growth outlook. So I just want to be clear about that.

好的。當然。謝謝你的提問。首先，關於整體營收成長和全年展望，我對我們目前的成長前景非常滿意。我只想明確這一點。

We've done a lot of hard work over the past 18 months or so to reaccelerate the business and reaccelerate revenue through combination of improving our core service, which Greg and Ted just talked about, and rolling out paid sharing, launching our ads business. And that reacceleration really started in the back half of '23, and it built through the year. So our growth in the back half of '24 is really kind of comping off of those hard comps. And at the high end of our revenue forecast, our growth in the second half is consistent with our growth in the first half even with those tougher comps.

在過去18個月左右的時間裡，我們做了大量努力，透過改善核心服務（如Greg和Ted剛才提到的）以及推出付費分享和廣告業務，來重振業務並提升收入。這項重振進程真正始於2023年下半年，並持續成長。因此，2024年下半年的成長很大程度上是受到去年同期高基數的影響。即便考慮到這些高基數因素，我們下半年的營收預測上限也與上半年的成長一致。

And it's still early in the year. We still got a lot to execute against. We also -- as you see in our letter, there's been some FX that -- with the strengthening dollar. That's a bit of a headwind, so we'll see where that goes throughout the year. But we're guiding a healthy double-digit revenue growth for the full year, which is what we set out to deliver, and that's what's reflected in the range.

現在還只是年初，我們還有很多工作要做。正如您在信中看到的，美元走強也帶來了一些外匯波動，這算是一個不利因素，所以我們會觀察它在今年的發展方向。但我們預計全年營收將實現兩位數的健康成長，這正是我們設定的目標，也反映在了預期區間。

And I guess maybe it's -- in the question, I guess, seated in this is a little bit of like what's really kind of the outlook for our growth of the business, not just the back half of this year but into '25. And it's too early to provide real -- specific guidance, but we're going to work hard to sustain healthy double-digit revenue growth for our business.

我想，這個問題其實有點關乎我們業務成長的前景，不僅是今年下半年，還有到2025年的發展前景。現在給予具體的指導還為時過早，但我們會努力保持業務兩位數的健康營收成長。

And we really like the kind of the opportunity ahead of us. And we're so small in every aspect. We're only 6% roughly of our revenue opportunity. We're less than 10% of TV share in every country in which we operate. There's still hundreds of millions of homes that are not Netflix members, and we're just getting started on advertising.

我們非常看好眼前的機會。但我們在各方面都還很小。我們的營收潛力只佔約6%。在我們營運的每個國家，我們的電視市佔率都不到10%。還有數億家庭不是Netflix會員，而且我們的廣告業務才剛起步。

So the key is to, as you just heard from Greg and Ted, continually improve our service, drive more engagement, more member value. As we do that, we'll have more members. We'll be able to occasionally price and add value and also have a big, highly engaged audience for advertisers. So more to come on '25 guidance, but that's -- we feel good about the outlook. And then I guess the second part of the question, I'm trying to remember, Spencer, I'm sorry.

所以關鍵在於，正如你剛才從格雷格和泰德那裡聽到的，要不斷改進我們的服務，提高用戶參與度，提升會員價值。隨著我們做到這一點，我們的會員數量將會增加。我們將能適時地調整價格、增加價值，同時也能為廣告主提供一個龐大且高度活躍的受眾群體。關於2025年的業績指引，我們稍後會發布更多信息，但我們對前景感到樂觀。至於問題的第二部分，史賓塞，抱歉，我正在努力回想。

I can take -- I'll be the bad guy on this one, Spence. So the second question was do you expect Q2 subscriber growth to be higher or lower than Q2 of the prior year.

我可以接受──史賓塞，這次我來當壞人。所以第二個問題是，你預期第二季的用戶成長會高於還是低於去年同期？

So Barton, as you know, we don't give formal subscriber guidance. We did give an indication in the letter for you that we expect fairly typical seasonality. So paid net adds in Q2 of this year will be lower than Q1 of this year, and that's the limit of the color we'll provide there.

巴頓，如你所知，我們不提供正式的訂閱用戶預測。我們在給你的信中提到，我們預計會出現相當典型的季節性波動。因此，今年第二季度的付費用戶淨增量將低於第一季度，而我們也只能提供這麼多資訊。

Thanks, Spencer.

謝謝你，史賓塞。

No problem, Spence. So to follow up on the revenue guidance question, we have Jason Helfstein from Oppenheimer, who's asking for some more color on the drivers of the full year revenue guidance with respect to subscriber growth versus ARM growth and how that -- those 2 dynamics will play into the revenue forecast, Spence.

沒問題，史賓賽。關於營收預期的問題，我們邀請了奧本海默公司的傑森·赫爾夫斯坦，他想請您詳細解釋一下全年營收預期的驅動因素，特別是用戶成長和ARM成長，以及這兩種因素將如何影響營收預測，史賓塞。

Yes. I -- do you want me to take this one as well?

是的。我──你也想讓我拍這張嗎？

Yes.

是的。

Okay. I'll jump in. Others can chime in as well. But when we think about the outlook for the year, it's -- in terms of the mix of revenue growth, it's kind of pretty similar to -- we expect it will be pretty similar to what you see in Q1, where it's primarily driven by member growth because of the kind of the full year impact of paid sharing rolling through the year and continued strong acquisition and retention trends.

好的，我先說幾句。其他人也可以補充。但當我們展望今年的前景時，就營收成長組成而言，我們預計今年的情況與第一季非常相似，主要由會員成長驅動，因為付費分享的全年影響將持續，而且用戶獲取和留存趨勢依然強勁。

But you are -- we are seeing some ARM growth as well. We saw it in Q1, about 1% on a reported basis, 4% FX neutral. And what's -- I just want to be clear. What's happening is that -- with ARM is price changes are going well. And that's why we're seeing those strong acquisition retention trends because it's testament to the strength of our slate, the overall improvement in the value of our service.

但是，我們也看到了ARM業務的成長。第一季度，以報告資料計算成長了約1%，按匯率中立計算成長了約4%。我想澄清一點，ARM業務的價格調整進展順利。正因如此，我們看到了強勁的客戶獲取和留存趨勢，證明了我們產品組合的實力，以及我們服務價值的整體提升。

But we've only really changed prices in a few big markets, and that was U.S., U.K., France late last year and only on some of the plan tiers in those markets, not even all the plan tiers. And since then, it's been mostly pretty small countries other than Argentina. In Argentina, as you can see, we're sort of pricing into the local currency devaluation, and you see that in the difference between FX neutral and reported growth in Q1.

但我們實際上只在少數幾個大市場調整了價格，包括去年底的美國、英國和法國，而且僅限於這些市場的部分套餐級別，並非全部。自那以後，除了阿根廷以外，調整價格的主要是規模較小的國家。在阿根廷，如您所見，我們已經將本幣貶值計入價格，這體現在第一季外匯中性成長和實際成長之間的差異。

So mostly what you're seeing in our growth profile this year is the fact that we haven't taken pricing in most countries for the past 2 years really. And we also have some ARM kind of headwinds in the near term that you see in Q1. You'll probably see throughout most of this year, which is that, one, we have some -- this plan mix shift as we roll out paid sharing. So it's -- while it's highly revenue accretive, as you can see in our numbers, in our reported growth -- strong reported growth in Q1 and outlook for the year, that -- as we spin off into new paid memberships, they tend to spin off into a mix of plan tiers that's a little bit of a lower price SKU than what we see in our tenured members.

所以，您今年在我們成長概況中看到的主要問題是，過去兩年我們在大多數國家/地區都沒有進行定價。此外，我們在第一季也面臨一些ARM（收入管理）的阻力，這些阻力可能會持續到今年大部分時間。具體來說，隨著我們推出付費分享服務，我們的方案組合會發生一些變化。雖然付費分享服務能夠顯著提升收入（正如您在我們的財務數據和報告的增長中所看到的——第一季報告的增長強勁，並且對全年的展望也如此），但隨著我們推出新的付費會員服務，這些新會員的套餐組合往往會包含一些價格略低於我們現有會員套餐的SKU。

And we're also growing our ads tier at a nice clip as you've seen and I'm sure we'll talk about. And monetization is lagging growth there. I'm sure we'll talk about that a bit as well. We also have some country mix shifts. So that whole combination of factors results in pretty modest ARM growth -- still some ARM growth but pretty modest in Q1 and probably throughout the year. But again, the key there is that this is all -- we're kind of managing this business transition in a way that's really healthy for overall revenue growth as you see with 15% reported revenue growth in the quarter, strong outlook for the year.

如您所見，我們的廣告業務也在快速成長，我們之後肯定會詳細討論這一點。但變現成長卻落後於廣告業務的成長。這一點我們之後也會談到。此外，我們的國家/地區組成也發生了一些變化。所有這些因素綜合起來，導致ARM（廣告收入）成長較為溫和——儘管ARM仍然有所成長，但在第一季度以及全年可能都是如此。但關鍵在於，我們正在以一種對整體營收成長非常有利的方式來管理這項業務轉型，正如您所看到的，本季報告的營收成長了15%，全年前景也十分樂觀。

And we're building into a much more kind of durable and healthy foundation for revenue growth going forward across a larger base of paid members and a really kind of strong and scaled, highly engaged audience for it to build into our advertising over time and a strong paid sharing solution also to kind of penetrate into those households. So we'll increasingly kind of see that mix in our revenue growth, and we start to see some of it this year.

我們正在建立一個更持久、健康的營收成長基礎，這得益於我們龐大的付費會員群體，以及一個真正強大、規模化且高度活躍的受眾群體，這將隨著時間的推移，為我們的廣告投放和強大的付費分享解決方案奠定基礎，從而更好地滲透到這些家庭用戶中。因此，我們將在營收成長中看到這種組合的日益顯著，而今年我們已經開始看到一些成效。

Great. Spence, the next question comes from Kannan Venkateshwar from Barclays, and it's for you, which is do you expect margin growth trajectory to continue being on the present path for a few years? Can you attain margins that are comparable to legacy media margins?

好的。斯賓塞，下一個問題來自巴克萊銀行的坎南·文卡特什瓦爾，這個問題是問你的：你預計利潤率增長的趨勢會在未來幾年繼續保持嗎？你能達到與傳統媒體利潤率相當的水準嗎？

Well, thanks, Kannan. Our focus is on sustaining healthy revenue growth and growing margins each year. That's what we talk about a lot that. We also talked about it in the letter. And we feel good about what we've been delivering. 21% margins last year, that's up from 18% in the year before. And now we're targeting 25% this year, which is up a tick from the start of the year when we were guiding to 24%.

謝謝，坎南。我們的重點是維持健康的營收成長，並逐年提高利潤率。我們一直在強調這一點，在信中也提到過。我們對目前的業績感到滿意。去年的利潤率為21%，高於前年的18%。今年我們的目標是25%，比年初預期的24%略有提升。

So I'd say just like we have in the past, we'll take a disciplined approach to balancing margin improvement with investing into our growth. We've managed that balance historically pretty well, growing content investment, growing profit, growing profit margin and growing cash flow. You should expect we'll continue to do that. But the amount of annual margin expansion in any given year could bounce around a bit with FX and other investment opportunities. But again, we're committed to grow margin each year, and we see a lot of runway to continue to grow profit and profit margin over the long term.

因此，我想說，就像我們過去所做的那樣，我們將採取嚴謹的態度，在提升利潤率和投資成長之間取得平衡。我們過去在這方面做得相當不錯，不斷增加內容投資、提高利潤、提高利潤率和增加現金流。您可以期待我們繼續這樣做。但是，任何一年的利潤率成長幅度可能會受到匯率和其他投資機會的影響而略有波動。不過，我們始終致力於每年提高利潤率，我們認為在長期內，利潤和利潤率都有很大的成長空間。

Thank you, Spence. Our next question comes from Alan Gould of Loop Capital. Which inning are we in with respect to enforcing paid sharing? Two years ago, you said 100 million subscribers were sharing passwords with 30 million in UCAN. How many do you estimate still borrow passwords? And I'll turn the floor over to Greg to answer that question.

謝謝 Spence。下一個問題來自 Loop Capital 的 Alan Gould。在強制執行付費密碼共享方面，我們目前進展到什麼階段了？兩年前，您提到有 1 億用戶共享密碼，其中 3,000 萬用戶使用 UCAN。您估計現在還有多少用戶在藉用密碼？接下來，我將把發言權交給 Greg 來回答這個問題。

Yes. As we mentioned last quarter, we're at the point where we've operationalized the paid sharing work. So this is just now part of that standard mechanism that we've been building and iterating on over time to translate more entertainment value and great film, series, games, live events into revenue.

是的。正如我們上個季度提到的，我們已經實現了付費分享功能的運作。現在，這只是我們一直在構建和迭代的標準機制的一部分，旨在將更多娛樂價值，例如優秀的電影、劇集、遊戲和現場活動，轉化為實際收入。

And like we do with all of the significant parts of our product experience, we're iterating on that, testing it, improving it continually. So rather than thinking beyond sort of specific cohorts or specific numbers, we really think about this more as developing more mechanisms, more effective ways to convert folks who are interacting with us, whether they be borrowers or folks that were members before that are coming back, we call them rejoiners, or folks that have never been a Netflix member. So we want to find the right call to action, the right offer or the right nudge at the right time to get them to convert.

就像我們在對待產品體驗中所有重要環節一樣，我們也不斷迭代、測試和改進。因此，我們不再局限於特定的用戶群或具體數字，而是著眼於開發更多機制，尋找更有效的轉換方式，吸引與我們互動的用戶，無論是藉閱用戶、回歸的老用戶（我們稱之為「重新加入用戶」），還是從未成為 Netflix 會員的新用戶。我們希望在適當的時機，提供適當的行動呼籲、優惠或引導，促使他們完成轉換。

And just to be clear, we still see opportunities to improve this process. We've got line of sight on several improvements, this value translation mechanism that we expect will deliver and contribute to business growth for the next several quarters to come. But I also very much believe that just like for the last 15 years, we're going to -- we've always found something to improve in this process. And even beyond those, for years and decades to come, we'll be working on this and making it better and better and better.

需要明確的是，我們仍然看到改善這項流程的機會。我們已經著手改進幾項內容，我們預計這一價值轉換機制將在未來幾季內為業務成長做出貢獻。但我堅信，就像過去15年一樣，我們總能在這個流程中找到改進的空間。而且，在未來的幾年甚至數十年裡，我們將繼續致力於改進，使其不斷改進。

So all of those improvements could allow us to effectively get more of that 500 million-plus smart TV households to sign up and become members. Spence mentioned the hundreds of millions yet to come. This is a way to effectively get at more of those folks and make them part of our membership base.

因此，所有這些改進都能幫助我們有效地吸引更多擁有超過5億台智慧電視的家庭註冊成為會員。史賓塞提到還有數億潛在用戶。這是一種有效接觸更多用戶並將其納入我們會員體系的方法。

And as we mentioned earlier on the call, too, I think worth noting that while we're fully anticipating continuing to grow subs, the overall business growth now has extra levers and extra drivers like plan optimization, including things like extra members, ads revenue, pricing into more value, which is important. So those levers are also an increasingly important part of our growth model as well.

正如我們之前在電話會議中提到的，我認為值得注意的是，雖然我們完全預期訂閱用戶數量會繼續增長，但整體業務增長現在有了額外的槓桿和驅動因素，例如方案優化，包括增加會員數量、廣告收入以及提供更有價值的定價策略，這些都非常重要。因此，這些槓桿也日益成為我們成長模式的重要組成部分。

Great. I'll move this on now to a series of questions around advertising. The first of which comes from Doug Anmuth of JPMorgan. What are the most important drivers of scaling your ad tier when you think about adjustments you could make to pricing and plans, partner bundles and marketing? How do you get people over the hump for -- that a few minutes of ads an hour can still be a very good experience at the right price? Greg, why don't you take that one?

好的。接下來我將討論一系列關於廣告的問題。第一個問題來自摩根大通的道格·安穆斯。在考慮調整定價和套餐、合作夥伴組合以及行銷策略時，您認為擴展廣告層級的最重要驅動因素是什麼？如何讓人們接受每小時幾分鐘的廣告，並相信只要價格合適，仍然可以帶來非常好的體驗？格雷格，這個問題就由你來回答吧。

Yes. All the things you mentioned in the question matter. And I would say we're generally taking our entire playbook, everything that we've learned about how do you grow members, and we're applying it to our ads tier now. So clearly, that means partner channels. It means device integrations, bundles, integrated payments. Those are all important tools for growth just as they are and will continue to be in our non-ads offering; increasing awareness of the quality of our ads experience, especially relative to the linear TV ads experience, which, in many countries, is really quite poor. That's an important iterative tool when we talk about sort of marketing and awareness building. That's going to be part of our growth mechanism.

是的。您在問題中提到的所有方面都很重要。我想說的是，我們正在將我們所有關於如何發展會員的經驗，包括所有相關策略，應用到我們的廣告層級。顯然，這意味著合作夥伴通路、設備整合、捆綁銷售和整合支付。這些都是重要的成長工具，就像它們在我們非廣告產品中一樣，並且未來也將繼續發揮作用；提高用戶對我們廣告體驗品質的認知度，尤其是在與傳統電視廣告體驗（在許多國家，傳統電視廣告體驗確實很差）的對比方面。當我們談到行銷和品牌認知度提升時，這是一個重要的迭代工具。它將成為我們成長機制的一部分。

Low price, that's important to consumers. $6.99 is an example in the United States for multiple streams, full HD downloads. We think that's a great entertainment value, especially at the industry-leading low ad load that we've got. So that's critical as well.

低價對消費者來說至關重要。例如，在美國，多路串流媒體播放和全高清下載的價格僅為 6.99 美元。我們認為這極具娛樂價值，尤其是在我們業界領先的低廣告率的情況下。因此，價格也是關鍵。

So I think you can see the results of leveraging all of these mechanisms and more and how our ads tier has been scaling over the last couple of quarters. So we're 65% up quarter-to-quarter this last quarter. That's after 2 quarters of about 70% quarter-over-quarter growth. For me, it's exciting to see that growth rate stay high even as we've grown the base so much because obviously the numbers indicate that, that means that there's more absolute additions each quarter. So we're making good progress there.

所以，我認為大家可以看到，運用所有這些機制以及其他更多手段所帶來的成果，以及我們廣告層級在過去幾季的規模化成長。上個季度，我們的廣告收入較上季成長了65%。此前兩個季度，我們的環比成長率都達到了70%左右。對我來說，看到成長率在用戶基數大幅成長的情況下仍然保持如此高位，這令人振奮，因為很明顯，數據表明，這意味著每個季度的新增用戶數量都在增加。因此，我們在這方面取得了良好的進展。

But look, we've got much, much more to do in terms of scaling. We've got more to do in terms of effective go to market, more technical features, more ads products. There's plenty of work ahead for us on ads.

但是，在規模化方面，我們還有很多工作要做。在有效的市場推廣、更多技術功能和更多廣告產品方面，我們還有很多工作要做。廣告領域還有很多工作等著我們完成。

Great. Greg, our next question on advertising comes from Rich Greenfield of LightShed. He has a 3-part question. Part one, can you update us on your thinking around the optimal spread between the ad tier and the ad-free tier? Secondly, is your advertising ARPU, excluding the subscription fee, up meaningfully versus your original comments that it was in the $8 to $9 range last year? And then lastly, can you give us a sense of what ARPU would look like if supply was not outstripping demand?

好的。 Greg，我們下一個關於廣告的問題來自 LightShed 的 Rich Greenfield。他的問題分為三個部分。第一部分，您能否更新一下關於廣告層級和無廣告層級之間最佳價格分配的思路？第二部分，您去年提到的廣告平均每用戶收入（ARPU，不包括訂閱費）是否比之前提到的 8 到 9 美元區間有了顯著增長？最後，如果廣告供應不再超過需求，ARPU 大概會是多少？

Yes. I'll take the first one and then maybe hand the ARPU/ARM points to Spence. We don't have a fixed operator position on sort of the optimal pricing spread. And much like we've done with price changes in general, we really use signals from our customers, things like plan take rate, conversion rates, churn to guide us along an iterative path to get to that right pricing.

是的。我先拿第一個，然後可能會把ARPU/ARM積分給斯賓塞。我們對最優價格區間並沒有固定的業者立場。就像我們一直以來調整價格一樣，我們會根據客戶的回饋，例如套餐選擇率、轉換率、客戶流失率等數據，不斷迭代優化，最終找到合適的定價策略。

And I think it's also probably worth noting that sort of right pricing is not really a static position. As we continue to evolve and improve our offering, that's going to change as well. But I think a good general guideline for us in the long term is that it would be healthy for us to land overall monetization between our ads and non-ad offerings in roughly an equivalent position. So that really comes down to what works best for any given member, and it's really a member choice about which plan they think serves them the best.

而我認為值得注意的是，合理的定價並非一成不變。隨著我們不斷發展和完善產品和服務，價格也會隨之改變。但我認為，從長遠來看，一個比較好的總體原則是，使我們的廣告和非廣告收入在整體獲利方面大致處於平衡狀態。所以，最終取決於哪一種方案最適合每位會員，會員可以自由選擇最適合自己的方案。

And then I'll hand it over to Spence on ARM questions.

然後我會把問題交給 Spence，讓他回答 ARM 相關的問題。

Sure. Thanks, Greg. So in terms of ARM and your question, Rich, in terms of how we're doing now relative to what we discussed when we first launched business, as Greg said, we've been growing our inventory at quite a fast clip. And so monetization hasn't fully kept up with that growth in scale and inventory as we're still early in building out our sales capabilities and our ad products. But that is an opportunity for us because this -- we're still a very premium content environment, very highly engaged audience that's at an increasing scale. So our CPMs remain strong.

當然。謝謝，格雷格。關於ARM以及你的問題，里奇，就我們目前的情況而言，與我們最初推出業務時討論的內容相比，正如格雷格所說，我們的廣告庫存增長速度非常快。然而，由於我們仍在建立銷售能力和廣告產品的早期階段，因此變現能力尚未完全跟上規模和庫存的成長。但這對我們來說是一個機會，因為我們仍然擁有非常優質的內容環境，受眾參與度很高，而且規模還在不斷擴大。因此，我們的CPM依然強勁。

And we're building out our capabilities, as Greg talked about. So the revenue is going to follow engagement over time, and it's already kind of growing nicely, which is great just off a small base. So then really, as Greg said, what that means for ARM is right now, it is a bit of a drag on our ARM because of we're kind of under-monetizing relative to supply. But over time, we expect to be similar in revenue on our ads tier, a combination of subscription as well as ads revenue with those kind of non-ads offering. So that's how to think about it, but we're building to it over time.

正如格雷格所說，我們正在不斷提升自身能力。因此，收入會隨著用戶參與度的提升而成長，而且目前已經呈現良好的成長勢頭，這在基數較小的情況下已經非常可觀了。所以，正如格雷格所說，這對ARM（廣告收入）來說意味著，目前由於我們的獲利能力相對於供應量而言略顯不足，這在一定程度上拖累了ARM業務的發展。但隨著時間的推移，我們預期廣告層級的收入將與訂閱收入和廣告收入（包括非廣告產品）的收入水準相當。這就是我們應該如何看待這個問題的，但我們正在逐步實現這一目標。

Great. Last question on advertising comes from John Hodulik at UBS. How are you approaching this year's upfronts? And do you believe the base of ad support users is now of the scale that upfront commitments can drive a meaningful change in advertising revenue and be a contributor to ARM growth in 2025? So perhaps, Ted, maybe you could start and then, Greg, a follow after that.

好的。最後一個關於廣告的問題來自瑞銀的約翰‧霍杜利克。您如何看待今年的預售？您認為廣告支援用戶群目前的規模是否足以讓預售承諾對廣告收入產生實質影響，並有助於ARM在2025年實現成長？那麼，泰德，或許你可以先說說，然後格雷格，接著說說你的看法。

Yes, of course. Look, first and foremost, this is our second upfronts. We're really excited to go and share with advertisers this incredible slate that we're very, very proud of. So they're going to get a look at some of the shows that are upcoming right away, like brand-new seasons of Bridgerton and Sweet Tooth and That '90s Show; some of our big unscripted events upcoming, like our Tom Brady roast, by way of example; and brand-new shows like Dead Boy Detectives and Shane Gillis' new show, Tires; Eric, a great new limited series out of the U.K. with Benedict Cumberbatch that we're super excited about.

當然可以。首先，這是我們的第二次預售會。我們非常興奮地向廣告商們展示我們引以為傲的精彩節目陣容。他們將有機會先睹為快一些即將播出的節目，例如《布里奇頓》、《甜蜜牙齒》和《90年代秀》的全新一季；一些即將推出的大型真人秀節目，例如我們的湯姆·布雷迪吐槽大會；以及一些全新劇集，例如《死男孩偵探》和肖恩·吉利斯的新劇《輪胎》；還有來自英國、由本尼迪克特·康伯奇。

And then they'll even get a longer look at what's coming up in the second half of the year, which is, again, returning seasons of Cobra Kai, Emily in Paris, The Night Agent, Outer Banks; and Squid Game, our big one; and a brand-new season of Monsters from Ryan Murphy, which is the Lyle and Erik Menendez story this year, which is going to be really an incredible thing to share with our advertisers; brand-new original series and limited series like American Primeval from Pete Berg; [Heartburn] with an all-star cast, Nicole Kidman and Liev Schreiber; Senna, which is this great limited series on the great Brazilian Formula 1 driver that we're really excited about.

然後他們還能更詳細地了解下半年的節目安排，包括《眼鏡蛇道館》、《艾米麗在巴黎》、《夜班特工》、《外灘探秘》的回歸季；以及我們的重磅劇集《魷魚遊戲》；還有瑞恩·墨菲打造的全新一季《怪物》，講述的是萊爾和埃里克·梅內德斯兄弟的故故的故故事，這絕對值得和我們的廣告商分享；還有皮特·伯格打造的全新原創劇集和限定劇，例如《美國遠古入侵》；由妮可·基德曼和列夫·施瑞博爾等全明星陣容出演的《心火》；以及關於偉大的巴西一級方程式賽車手塞納的限定劇，我們對此感到非常興奮。

And also, I look at our early -- at our movies coming up that we'll end the year with, with like Eddie Murphy and his most iconic role, Axel Foley, in Beverly Hills Cop: Axel Foley; Carry-On; a big new animated feature, Spellbound. So we've got a lot of entertainment in store for the audience at the upfronts.

此外，我還關注了我們即將上映的電影，這些電影將為今年畫上圓滿的句號，比如埃迪·墨菲主演的《比佛利山警探：阿克塞爾·弗利》，他在片中飾演了阿克塞爾·弗利這個最具代表性的角色；還有《Carry On》系列；以及一部全新的動畫長片《Spellbound》。所以，在電影預售會上，我們將為觀眾帶來豐富的娛樂內容。

Yes. I think this is an opportunity to reengage with advertisers and look at the fundamentals of what our offering is. I mean, first and foremost, it's an incredible list of titles that brands want to be connected with. It's just super exciting to hear that roster. We've got great engagement from our members on our ads tier. We've got an opportunity to grow that even further. We think that's connected again to the power of those titles.

是的。我認為這是一個重新與廣告商建立聯繫，並審視我們產品基本面的機會。首先，也是最重要的一點，這是一份品牌渴望與之合作的優秀刊物名單。聽到這份名單真是令人興奮。我們的廣告層級會員參與度很高，我們有機會進一步提升參與。我們認為這又與這些刊物的影響力息息相關。

We're rapidly growing scale as we mentioned. That's the #1 request we've had from advertisers. So that's exciting. We're making progress on technical features like measurement on ads products. So we're excited to get that out there. And really, this is just an opportunity to bring all of that progress in a package to advertisers and then -- and of course, to get input from them because we know that they're going to have comments and they're going to have things that they're going to want us to continue to work on; and then really then just to continue that journey because we know there's plenty more to go do to realize the potential we have in the space.

正如我們之前提到的，我們的規模正在快速成長。這是廣告主們最迫切的需求，這令人振奮。我們在廣告產品的衡量指標等技術功能方面也取得了進展，並期待將這些成果推向市場。實際上，這是一個將所有這些進展整合起來呈現給廣告主的機會，當然，我們也希望聽取他們的意見，因為我們知道他們會提出建議，也會希望我們繼續改進某些方面；然後，我們將繼續前進，因為我們知道，要充分發揮我們在這一領域的潛力，還有很多工作要做。

And so I would say we're continuing to grow here. We're growing off of a relatively small base in terms of the impact against already big and substantial business. So even though it's growing quite quickly, it takes a while to grow that into the point where it's material. So we look forward to -- in that increasing in '25 and then increasing further in '26 and beyond.

所以我認為我們仍在持續成長。就對現有龐大業務的影響力而言，我們的基數相對較小。因此，儘管成長速度很快，但要達到實質的規模還需要一段時間。我們期待在2025年實現成長，並在2026年及以後進一步成長。

Great. I'll now transition us to several questions around content. And this first one, I'll direct to Ted. It's a rare question around why don't we spend more. Given what seems like a very favorable current backdrop for Netflix to acquire and license content, why not lean in even more aggressively? Could it make sense to spend more than $17 billion in cash content this year?

好的。接下來，我們將討論幾個關於內容的問題。第一個問題，我請Ted來回答。這是一個比較少見的問題：為什麼我們不加大投入？鑑於目前Netflix收購和授權內容的情況似乎非常有利，為什麼不更積極地投入呢？今年在內容上投入超過170億美元是否合理？

Yes. Independent of the availability of licensed content, you should look at it -- I think we're -- we've always been very disciplined about the way we invest in the business and how we grow it. And we can get a lot of bang for our buck by spending our money well and producing our shows really well and also by acquiring the right content.

是的。撇開授權內容的供應情況不談，你應該看看——我認為我們——我們一直以來在業務投資和發展方面都非常謹慎。透過合理利用資金、精心製作節目以及獲取合適的內容，我們可以獲得豐厚的回報。

And the floodgates have opened a little more on licensing for sure. But again, we're very focused on the ones that we think will drive the business. So I think we're -- at our current level of spending and our current rate of growth that we're pretty comfortable spending just behind that anticipated rate of growth.

授權許可方面的大門確實已經稍微敞開了一些。但我們仍然非常專注於那些我們認為能夠推動業務成長的項目。所以我覺得，以我們目前的支出水準和成長速度來看，我們完全可以接受支出略低於預期成長速度。

And Ted, Jason Helfstein's follow-up is also about license content or second-run content. And his question is how would a second -- more second-run licensing impact your margins and free cash flow.

泰德，傑森·赫爾夫斯坦的後續問題也與授權內容或二輪播放內容有關。他的問題是，更多的二輪播放授權會對你的利潤率和自由現金流產生什麼影響。

Well, the budget is the budget, so that's -- it's all part of how we're spending against the content. And the free cash flow economics, we've gotten pretty close in our cash flow against P&L on our content spend generally. So I don't think it would have much -- very much impact on that, unless you want to add some color to that, Spence.

嗯，預算就是預算，所以——這都取決於我們如何把錢花在內容上。至於自由現金流方面，我們內容支出的現金流量與損益表大致上已經非常接近了。所以我認為這不會產生太大影響，除非你想補充一些細節，史賓塞。

I just love you talking about the discipline on our content budgets, Ted. It makes me happy. No, I agree with all of it. I mean, yes, we spend with the opportunity but with, I think, prudent constraints and discipline.

泰德，我太喜歡你談到內容預算的管控了，這讓我很開心。是的，我完全同意你的觀點。我的意思是，沒錯，我們會抓住機會進行投入，但我認為，我們也會謹慎地控制預算，並嚴格遵守預算紀律。

And to be clear, like we -- as you say, there has been more licensed content opportunity, but the vast majority of our content spend is still into original programming. It's -- and it is and is likely to continue to be. So we'll always complement it with great licensed content for that variety and quality for our members, but the originals -- original content is still our future, too. Yes.

需要澄清的是，正如您所說，授權內容的機會確實更多了，但我們絕大部分的內容投入仍然用於原創節目。過去如此，將來也可能如此。因此，我們將始終以優質的授權內容來補充原創節目，以滿足會員多樣化和高品質的需求，但原創內容——原創內容仍然是我們的未來。是的。

Great. Next question is from Michael Morris of Guggenheim. Specific about the Jake Paul-Mike Tyson fight for Ted. What are the characteristics of the upcoming Jake Paul-Mike Tyson fight that make this the type of sports programming you're interested in investing in? How does that content benefit your member base and advertising growth goals?

好的。下一個問題來自古根漢的麥可莫里斯。他專門問了泰德關於傑克·保羅和邁克·泰森的比賽的問題。即將到來的傑克保羅和麥克泰森的比賽有哪些特點，讓你們覺得這是值得投資的運動節目類型？這樣的內容如何幫助你們達成會員成長目標？

So we're in the very early days of developing our live programming. And it's -- I would look at this as an expansion of the types of content we offer, the way we expanded to film and unscripted and animation and most recently, games.

所以，我們目前還處於直播節目開發的初期階段。我認為這可以看作是對我們現有內容類型的拓展，就像我們之前拓展到電影、真人秀、動畫，以及最近的遊戲領域一樣。

On-demand and streaming have been unbelievable for consumer choice and control, and it's really put the controls of television back in the hands of consumers, which has been really phenomenal. But there's also something incredibly magic about folks gathering around the TV together in the living room to watch something all at the same time. We believe that these kind of eventized cultural moments, like the Jake Paul and Mike Tyson fight, are just that kind of television that we want to be part of winning over those moments with our members as well. So that, for me, is the excitement part of this.

點播和串流媒體極大地豐富了消費者的選擇和控制權，真正將電視的控制權交還給了消費者，這真是太棒了。但大家圍坐在客廳的電視前，同時觀看節目，這種場景也別有一番魅力。我們相信，像傑克保羅和麥克泰森的比賽這樣的文化盛事，正是我們希望參與其中，與會員們共同見證的那種精彩時刻。對我來說，這就是最令人興奮的地方。

We have -- beyond the fight itself, we have several nights of live comedy coming from the Netflix Is A Joke Festival next month. And starting in January, we've got 52 weeks of live sports with WWE Raw that's going to be coming to our members every week on Netflix. And we think it's going to be a real value add to watch those things in real time.

除了比賽本身，下個月我們還有幾場來自 Netflix Is A Joke Festival 的現場喜劇表演。從一月份開始，我們將連續 52 週在 Netflix 上為會員帶來 WWE Raw 的精彩體育賽事直播。我們相信，即時觀看這些內容將為會員帶來真正的價值。

And we're going to continue to try a lot of new things. But the core of it is, is do our members love it. And judging from the early excitement around the Jake Paul-Mike Tyson fight, there's going to be a lot of people waking up in the middle of the night all over the world to watch this fight in real time.

我們將繼續嘗試許多新事物。但關鍵在於，我們的會員是否喜歡。從傑克保羅和麥克泰森的比賽早期引發的熱烈反響來看，全世界會有很多人半夜醒來即時觀看這場比賽。

I think worth noting that just as what's relevant to members in terms of these large cultural events that Ted talks about, that's what has relevance to advertisers as well. So it's an opportunity for us to expand our advertising offering and give those brands access to these kind of culture-defining moments.

我認為值得注意的是，正如TED所談到的這些大型文化活動對會員的意義所在，對廣告商也同樣具有意義。因此，這為我們提供了一個拓展廣告業務、讓品牌有機會參與這些具有文化影響力的時刻的機會。

Thanks, Ted and Greg. And I'm personally looking forward to that event, and my money is on Iron, Mike Tyson. But as a follow-up on the sports...

謝謝泰德和格雷格。我個人非常期待這場比賽，我押注「鐵人」麥克泰森。不過，關於體育賽事…

Bold. Bold.

大膽。大膽。

Yes, he's still got it, I think. But as a follow-up to the sports question for Ted, as you continue to scale Netflix and become bigger and bigger and potentially gain more leverage, how could your sports strategy change beyond what you're doing today around primarily sports entertainment?

是的，我覺得他寶刀未老。不過，作為對泰德體育問題的後續提問，隨著Netflix規模的不斷擴大，影響力日益增強，你們的體育戰略會如何變化，才能超越目前主要圍繞體育娛樂的模式？

Yes. We said this many times, but not anti-sports but pro profitable growth. And I think that's the core of everything we do in all kinds of programming, including sports. So our North Star is to grow engagement, revenue and profit. And if we find opportunities we could drive all 3 of those, we will do that across an increasingly wide variety of quality entertainment. So when and if those opportunities arrive that we can come in and do that, which we feel like we did in our deal with WWE, if we can repeat those dynamics in other things, including sports, we'll look at it for sure.

是的。我們已經多次強調這一點，我們並非反對體育，而是支持獲利成長。我認為這正是我們所有節目製作的核心，包括體育節目。因此，我們的最終目標是提升用戶參與、收入和利潤。如果我們發現能夠同時提升這三者的機會，我們會將其應用於日益豐富的優質娛樂內容中。所以，一旦出現這樣的機會，就像我們與WWE的合作一樣，如果我們能將這種模式複製到其他領域，包括體育節目，我們一定會認真考慮。

So I think it's -- we've had the benefit of building an enormous business without a loss leader, and we continue to believe that we can grow on that path just as you've seen. So I think the core of it is, is that we're going to look at those opportunities with the same discipline that we do when we talk to movie producers and television networks about putting our content on the air.

所以我認為——我們很榮幸在沒有虧本銷售的情況下建立了一個龐大的業務，而且我們仍然相信我們可以沿著這條路繼續發展，正如你所看到的。所以我認為關鍵在於，我們將以與電影製片人和電視台洽談播出我們內容時同樣的嚴謹態度來審視這些機會。

Great. The next question comes from Rich Greenfield from LightShed about our film strategy. So for Ted, a recent New York Times article cited internal communications from new Netflix film chief Dan Lin stating, "The aim is to make Netflix' movies better, cheaper and less frequent. Lynn wants his team to become more aggressive producers developing their own material rather than waiting for projects from producers and agents that come to them." Everyone wants to make better, cheaper films, but we find it hard to believe -- we being rich, find it hard to believe that there is a magic formula. Help us understand the strategy shift under Dan Lin versus Scott Stuber.

好的。下一個問題來自 LightShed 的 Rich Greenfield，關於我們的電影策略。 Ted，最近《紐約時報》的一篇文章引用了 Netflix 新電影主管 Dan Lin 的內部溝通內容，其中提到：「我們的目標是讓 Netflix 的電影更好、更便宜、更新頻率更低。Lynn 希望他的團隊成為更積極的製片人，開發自己的作品，而不是經紀人被動地等待製片人和妙藥上門來製作每個人想知道這些人很難請幫我們理解 Dan Lin 和 Scott Stuber 領導下的策略轉變。

Thanks for that question, Rich. I would send you back to that New York Times article because that was not a quote from Dan. And I would say that -- nor did we participate in that article. I would say, just to be clear, there is no appetite to make fewer films, but there is an unlimited appetite to make better films always. Even though we have made and we are making great films, we want to make them better of course.

謝謝你的提問，里奇。我建議你再看看那篇《紐約時報》的文章，因為那段話並非丹的原話。而且我想說的是──我們也沒有參與那篇文章的撰寫。我想澄清一點，我們並沒有減少電影製作的意願，但我們對製作更好的電影有著無限的熱情。即便我們已經製作過、正在製作優秀的電影，我們當然還是希望它們能做得更好。

We're super excited to have Dan join the company. He just joined a couple of weeks ago, and he's joined us running 100 miles an hour. Bela has said this publicly, that our strategy remains variety and quality, and she's doing an amazing job of bringing new fresh thinking to our content and our content organization. Bringing Dan onboard is a great example of that.

我們非常高興丹加入公司。他幾週前才加入，但一加入就火力全開，幹勁十足。貝拉曾公開表示，我們的策略仍然是保持內容的多樣性和高品質，而她也確實為我們的內容和內容團隊帶來了許多新鮮的想法，做得非常出色。丹的加入就是一個很好的例子。

We want to have a lot of movies. We want them to thrill our audiences, and they all have different tastes, and we want them all to be great. So we take a very audience-centric view of what quality is, and Dan knows that from having produced for us. As the CEO of Rideback, he produced the Oscar-nominated film, The Two Popes, for us. He did Avatar: The Last Airbender for us recently. So he understands Netflix and the audience really, really well. And his success in live action and animation is very hard to define in the business. So we're thrilled he's doing it here.

我們想製作很多電影。我們希望它們能讓觀眾興奮不已，而觀眾的口味各不相同，我們希望每一部電影都精彩絕倫。因此，我們對品質的評判標準非常注重觀眾，而丹·萊德（Dan Led）曾為我們擔任製片人，深諳此道。身為Rideback的首席執行官，他曾為我們製作了奧斯卡提名影片《教宗的承繼》。最近，他也為我們製作了《降世神通：最後的氣宗》。所以，他對Netflix和觀眾都非常了解。他在真人電影和動畫領域的成功在業界很難用語言來形容。因此，我們非常高興他能加入我們。

Great. Thank you, Ted. The next question comes from Kannan Venkateshwar from Barclays. Could you please provide an update on engagement trends now that paid sharing is mostly behind you? So I'll kick it over to Ted first, and Greg, you can feel free to add on.

太好了，謝謝你，泰德。下一個問題來自巴克萊銀行的坎南·文卡特什瓦爾。既然付費分享模式基本上已經結束，能否請你介紹用戶互動趨勢？我先把這個問題交給泰德，格雷格，你也可以補充。

Well, look, it's important to note that we compete for every hour of viewing all the time, every day, everywhere we operate. And we think that, that engagement report is very important and that metric is important because, again, it's the best indicator of customer satisfaction.

嗯，需要注意的是，我們始終在各個營運地點、每天的每一小時都與用戶爭奪觀看時長。我們認為，使用者互動報告和這項指標非常重要，因為它是衡量客戶滿意度的最佳指標。

I know I just said this 10 minutes ago, but I'm going to repeat it. Eight of the first 11 weeks of this year, we've had the #1 movie; and 9 of the last 11 weeks of this year, we've had the #1 series. And that's according to the Nielsen streaming data. And for us, that is what we're singularly focused on. And we've actually seen in that Nielsen data our share tick up a little bit even in this incredibly competitive space, where you've got a lot of folks competing for attention, for time and for money.

我知道我十分鐘前才說過，但我還是要再說一次。今年前11周里，我們有8週的電影收視率排名第一；今年後11周里，我們有9週的劇集收視率排名第一。這些數據來自尼爾森串流數據。而這正是我們目前唯一關注的重點。事實上，我們從尼爾森的數據中也看到，即使在競爭如此激烈的市場中，我們的份額也在穩步提升。在這個市場裡，很多人都在爭奪用戶的注意力、時間和金錢。

Yes, Ted, I think you can repeat that 8 out of 11; 9, 11 as many times as you want, as far as I'm concerned.

是的，泰德，就我而言，我認為你可以隨意重複 8/11、9、11 這樣的數字。

I'm going to close with that too.

最後我也要補充一點。

As we have said, due to the work that we've been doing on password sharing, we're essentially cutting off some viewers who are not payers, and therefore, we're going to lose some viewing associated with that. So when you see our next engagement report, you are going to see some impact to our overall absolute view hours as a result of that.

正如我們之前所說，由於我們一直在進行密碼共享方面的工作，這實際上會限制部分非付費用戶的觀看，因此，我們會因此損失一些觀看量。所以，當您看到我們下一份用戶互動報告時，您會看到我們的總觀看時間因此受到一些影響。

But despite that impact and despite the general pressure from strong competition that Ted noted, we think our engagement remains healthy. You can see it in the stat that Ted indicated in terms of the Nielsen ratings and our modest growth in TV time in the United States.

但儘管受到這些影響，也儘管泰德指出面臨激烈的競爭壓力，我們認為我們的用戶參與度仍然保持良好。泰德提到的尼爾森收視率數據以及我們在美國電視廣告時長的穩定成長就證明了這一點。

But we also wanted to do an apples-to-apples view of engagement. So we looked at the population not impacted by paid sharing, what we called owner households. And in Q1 of '24, the hours viewed per account were steady with the year ago quarter. So that's a pretty good sign that our engagement's holding up, and it sort of cuts through the noise around paid sharing.

但我們也想對用戶參與度進行公平的比較。因此，我們檢視了未受付費分享影響的使用者群體，也就是我們所謂的「擁有者家庭」。 2024年第一季度，每個帳戶的觀看時間與去年同期持平。這顯示我們的用戶參與度保持穩定，也讓我們更了解付費分享帶來的影響。

And again, I just want to reiterate, we think we have plenty of room to grow engagement, right? We're still less than 10% of TV hours even in our most mature markets. So there's tons of room of growth ahead of us.

我再次重申，我們認為用戶參與度還有很大的提升空間，對吧？即使在我們最成熟的市場，我們的電視廣告時間也只佔不到10%。所以，我們還有巨大的成長潛力。

Thank you, Ted and Greg. I'm going to move us along now to a series of questions around plans and pricing and pricing strategy. So from Steve Cahall from Wells Fargo, Greg, as you continue to expand, do you think there is a ceiling for pricing? If so, how close are we to that ceiling in mature markets? And do you envision Netflix having content here so that you can continue to expand your content genres and further segment your customer base?

謝謝Ted和Greg。接下來，我想問大家一些關於計畫、定價和定價策略的問題。首先，來自富國銀行的Steve Cahall問道：Greg，隨著你們的不斷擴張，你們認為定價是否有上限？如果存在，在成熟市場，我們距離這個上限還有多遠？你們是否設想Netflix會在這裡擁有內容，以便繼續拓展內容類型並進一步細分客戶群？

Yes. We don't have a set position on a ceiling. I mean, sure, you can look at paid TV as potential markers for where people have spent before. But we really actually don't think of it so much is defined by that. We see it as an opportunity to continue the process that we've been working on, which is let's continue to try and invest wisely, add more entertainment value. And as we add more entertainment value, then, of course, we can go back to our subscribers and ask them to pay a little bit more to keep that virtuous cycle moving.

是的。我們並沒有設定上限。我的意思是，當然，你可以把付費電視看作是人們過去消費習慣的潛在指標。但我們其實並不認為它完全由這些指標決定。我們把它看作是一個機會，讓我們能夠繼續推進我們一直在努力的方向，那就是繼續進行明智的投資，增加娛樂價值。隨著娛樂價值的提升，我們當然可以回過頭來，讓我們的訂閱用戶支付更多費用，以維持這個良性循環。

And really, the markers for us in terms of the upside potential more around the hours on TV that we are winning, how many moments of truth, we call it, that we are winning, again, less than 10% in our even most mature markets. There's tons of room there. You can use total consumer spend on entertainment in the markets and categories that we compete in. That's between 5% and 6%. So there's just a lot of runway still ahead of us to go do a good job at making that investment happen, deliver more value and then ask folks to pay a little bit more.

實際上，就我們而言，衡量成長潛力的關鍵指標更多在於我們贏得的電視廣告時長，以及我們稱之為「關鍵時刻」的廣告份額。即便在我們最成熟的市場，這一份額也低於10%。這方面還有很大的進步空間。你可以參考我們所處市場和品類中消費者在娛樂方面的總支出，這個比例在5%到6%之間。因此，我們還有很長的路要走，需要努力讓投資物有所值，創造更多價值，然後讓消費者願意支付更高的價格。

Great. Next question on pricing comes from Mark Shmulik of Bernstein. Can you please share progress on how the retirement of the basic plan is going in the U.K. and Canada? And is there any color you can share on if when we could expect a similar rollout in the U.S.? Greg, why don't you take that one?

好的。下一個關於定價的問題來自伯恩斯坦的馬克舒穆利克。能否分享一下英國和加拿大基本計畫的退保進度？以及，您能否透露一下美國何時會推出類似的計畫？格雷格，這個問題就由你來回答吧？

Yes. As we shared in the Q4 '23 letter, we were planning on retiring our basic plan in some of our ads countries. We've now started that process in Canada and the U.K. And very similar to what you see -- what you saw us do with paid sharing, we're going to work hard to make this a smooth transition. Part of that is listening to our members before we make any further moves, so we've got nothing more to announce, and we really want to see how this goes.

是的。正如我們在2023年第四季信函中所述，我們計劃在部分廣告投放國家/地區停止基礎套餐服務。目前，我們已在加拿大和英國啟動了這項流程。與您之前看到的付費分享服務類似，我們將努力確保平穩過渡。為此，我們會認真聽取會員的意見，然後再採取任何進一步措施。因此，目前我們暫無其他消息要宣布，我們非常期待觀察後續進展。

Yes. And we know that this is a change for our basic members, but we think we've got a strong offering for them. They're going to get more for less, 2 streams versus 1. We've got higher definition, we've got downloads, all at a lower price. And of course, it goes without saying, hopefully, that members can always choose our ads-free plans as well if they prefer.

是的。我們知道這對我們的基礎會員來說是個變化，但我們相信我們能為他們提供極具吸引力的方案。他們將以更低的價格獲得更多權益，例如雙流播放（而非單流）。我們提供更高清的畫質和下載服務，所有這些都以更低的價格提供。當然，會員如果願意，也可以隨時選擇我們的無廣告套餐。

Great. Thank you, Greg. Couple of questions on overall capital allocation. So these would be for Spence primarily from John Blackledge of TD Cowen. You mentioned evolving capital allocation strategy in your investor letter with the -- with your new investment-grade status. Can you please talk about the changes in how investors will see that change?

好的，謝謝格雷格。關於整體資本配置，我有幾個問題。這些問題主要是TD Cowen的約翰·布萊克利奇問斯賓塞的。您在致投資人的信中提到，隨著貴公司獲得新的投資等級評級，資本配置策略也不斷調整。您能否談談投資人會如何看待這項變化？

Yes. Sure. Thanks for the question. It's really quite a modest evolution of our capital allocation strategy to better reflect our investment-grade status. And that's really what it is. It's -- we're still going to have the same financial policies and principles in terms of prioritizing profitable growth by reinvesting in our core business, maintaining a healthy balance sheet with ample liquidity and returning excess cash beyond several billion dollars on the balance sheet of minimum cash and anything that we use for selective M&A to return to shareholders through share repurchase.

是的，當然。謝謝你的提問。這實際上是我們資本配置策略的相當溫和的調整，旨在更好地體現我們目前的投資等級信用評級。僅此而已。我們仍將秉持相同的財務政策和原則，優先考慮透過對核心業務的再投資來實現盈利增長，保持健康的資產負債表和充足的流動性，並將資產負債表上數十億美元的最低現金儲備以及用於選擇性併購的資金，通過股票回購返還給股東。

So really, the only change is that now that we're solidly investment grade, we're going to -- while we will hold still several billion dollars of cash on the balance sheet, we won't have the same marker of 2 months of revenue. The equivalent of 2 months of revenue on the balance sheet allows us to be a bit more efficient there. We also upsized our revolver, which was announced today, up to $3 billion from $1 billion, which also gives us more access to capital and better cash efficiency.

所以實際上，唯一的改變是，既然我們現在穩居投資等級，雖然資產負債表上仍將持有數十億美元的現金，但我們不再需要像以前那樣以兩個月的營收作為衡量標準。資產負債表上相當於兩個月營收的資金能讓我們更有效地運用資金。此外，我們今天也宣布將循環信貸額度從10億美元提高到30億美元，這也讓我們更容易獲得資金，並提高現金流效率。

And then, again, any cash beyond that, we'll return to shareholders. We've historically been mostly a build-versus-buy company with select strategic kind of acceleration through M&A. And that -- there's nothing right now planned, but that still is kind of our philosophy, is to build predominantly. And we're also going to kind of refinance our existing kind of debt as those maturities approach. But we don't plan to kind of lever up through stock buyback. We want to -- we really do value that balance sheet flexibility.

此外，剩餘的現金將返還給股東。我們歷來奉行自主研發而非收購的策略，僅在必要時透過併購加速策略擴張。目前我們尚無相關計劃，但這仍是我們的經營理念，即以自主研發為主。隨著現有債務即將到期，我們將進行再融資。但我們不打算透過股票回購來增加槓桿。我們非常重視資產負債表的彈性。

Great. Thank you, Spence. Last question on capital allocation for you. This comes from Vikram of Baird. What are your latest thoughts on the appropriate level of content spend for the business beyond 2024? Specifically in the past, you have referenced a 1.1 cash content spend-to-amortization ratio. Is that still the case? And what would you need to see in an opportunity to meaningfully exceed that framework?

好的，謝謝您，史賓塞。關於資本配置，我還有最後一個問題。這個問題來自貝爾德公司的維克拉姆。您對2024年以後公司內容支出的合理程度有什麼最新看法？您之前曾提到現金內容支出與攤銷比率為1.1。現在還是這樣嗎？您需要看到哪些機會才能顯著超過這個框架？

Yes. It still holds. It still holds. So we're still basic -- the short of it is we're really kind of managing to that. So as we said, we've been focused on driving that acceleration of our revenue growth, continuing to grow our business, grow our profitability. As we do that, we would expect to continue to grow our content investment as we have historically into the highest-impact areas but also be quite disciplined there. So we want to grow our free cash flow. So we believe we can manage to that roughly 1.1x of cash content spend relative to expense on the P&L. And that leads to overall revenue growth, increased profit, profit margins, growing free cash flow. And that still gives us a lot of opportunity to spend into the -- all those kind of content and entertainment categories that Greg and Ted have been talking about.

是的，情況依然如此。情況依然如此。所以我們仍然堅持基本原則——簡而言之，我們確實在努力做到這一點。正如我們所說，我們一直專注於加速營收成長，持續發展業務，提高獲利能力。同時，我們預期會像以往一樣，繼續加大對高影響力領域的投資，但同時也會維持一定的節制。我們希望增加自由現金流。我們相信，我們可以將現金內容支出控制在損益表費用的1.1倍左右。這將帶來整體營收成長、利潤提升、利潤率提高以及自由現金流的成長。這仍然為我們提供了大量機會，讓我們能夠投資於格雷格和泰德一直在談論的那些內容和娛樂類別。

Thanks, Spence. We have a few more minutes left, so we'll wrap up with a few higher-level questions. The next one comes from Eric Sheridan of Goldman Sachs. And I think both Ted and Greg can tackle this one. The question is what are your thoughts on the competitive impact from short-form video consumption?

謝謝斯賓塞。我們還有幾分鐘時間，所以最後再問幾個比較深入的問題。下一個問題來自高盛的艾瑞克·謝裡丹。我覺得泰德和格雷格都能回答這個問題。問題是：您認為短影片消費對競爭格局有何影響？

So I look at how -- what people watch and when they watch it, have a lot to do with one another. What are the choices and how much time do they have? So our version of short form is more like giving our members the ability to watch 10 minutes of an episode of a series that they're binging right now if they only have 10 minutes.

所以我研究的是，人們觀看什麼內容以及何時觀看，這兩者之間有著很大的關聯。他們有哪些選擇？他們有多少時間？因此，我們提出的短視頻理念更像是，讓我們的會員能夠在只有十分鐘時間的情況下，觀看他們正在追看的劇集中的一集十分鐘片段。

But some -- and they -- also look -- when I look at the short-form viewing on YouTube and TikTok, some of it is adjacent and quite complementary to our viewing. So our trailers or creators expressing their fandom for our shows like doing posting a Wednesday dance or ugly crying watching One Day, all those kind of things that become viral sensations and actually increase the fandom of our shows.

但有些人——他們——也會關注——當我瀏覽YouTube和TikTok上的短片時，發現其中一些內容與我們播出的內容密切相關，甚至相輔相成。例如我們的預告片，或者創作者表達對我們劇集的喜愛，像發布“週三舞蹈”視頻，或者觀看《一天》時淚流滿面等等，這些內容都能迅速走紅，實際上也增加了我們劇集的粉絲數量。

Now that being said, some of that viewing is directly competitive with us, the same as it is with other media companies who provide content to YouTube, by way of example. The art of this has always been finding the right balance of both. So -- and I also would point out that these platforms have been a way to have new voices emerge, and we've got our eye on them as well to try to develop them into the next generation of great storytellers on Netflix.

話雖如此，部分觀看量確實與我們有直接競爭關係，就像其他向 YouTube 提供內容的媒體公司一樣。關鍵在於找到兩者之間的平衡點。此外，我還想指出，這些平台為新聲音的湧現提供了契機，我們也密切關注著它們，努力將他們培養成 Netflix 下一代優秀的故事講述者。

Great. And I think for our final question, we'll take that from Dan Salmon of New Street Research. What is the opportunity for Netflix to leverage generative AI technology in the near and long term? What do you think great storytellers should be focused on as this technology continues to emerge quickly? I'll turn that over to Greg, please.

好的。最後一個問題，我們請New Street Research的Dan Salmon來回答。 Netflix在短期和長期內有哪些機會可以利用生成式人工智慧技術？隨著這項技術的快速發展，您認為優秀的說故事者應該關注哪些方面？接下來請Greg回答。

Yes. Worth noting, I think, that we've been leveraging advanced technologies like ML for almost 2 decades. These technologies are the foundation for our recommendation systems that help us find these largest audiences for our titles and deliver the most satisfaction for our members. So we're excited to continue to involve and improve those systems as new technologies emerge and are developed. And we also think we're well positioned to be in the vanguard of adoption and application of those new approaches from our just general capabilities that we've developed and how we've already developed systems that do all these things.

是的。值得一提的是，我們運用機器學習等先進技術已有近二十年之久。這些技術是我們推薦系統的基礎，幫助我們找到最廣泛的受眾群體，並為會員帶來最大的滿意度。因此，我們很高興能夠隨著新技術的出現和發展，繼續應用並改善這些系統。此外，憑藉我們已建立的綜合能力以及我們已開發出能夠實現所有這些功能的系統，我們認為我們完全有能力引領這些新方法的採用和應用。

We also think that we have the opportunity to develop and deliver new tools to creators to allow them to tell their stories in even more compelling ways. That's great for them. It's great for the stories, and it's great for our members.

我們也認為，我們有機會為創​​作者開發和提供新的工具，讓他們能夠以更引人入勝的方式講述自己的故事。這對他們來說是好事，對故事本身來說是好事，對我們的會員來說也是好事。

And what should storytellers be focused on? I think storytellers should be focused on great storytelling. It is incredibly hard and incredibly complex to deliver thrilling stories through film, through series, through games. And storytellers have a unique and critical role in making that happen, and we don't see that changing.

那麼，故事講述者該關注什麼呢？我認為，故事講述者應該專注於講好故事。透過電影、劇集或遊戲來呈現引人入勝的故事極其困難且複雜。故事講述者在實現這一目標的過程中扮演著獨特而關鍵的角色，而且我們認為這一點不會改變。

Great. Thank you very much, Greg. And we are now out of time. So I want to thank you all for taking the time to listen into our earnings call. And we look forward to speaking with you all next quarter. Thank you.

太好了。非常感謝你，格雷格。時間到了。感謝各位抽空收聽我們的財報電話會議。我們期待下個季度與大家再次交流。謝謝。