(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，歡迎來到 Netflix 2024 年第一季財報採訪。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。

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

提醒一下，我們將做出前瞻性陳述，實際結果可能會有所不同。

With that, 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.

現在，我們將回答分析師社群提交的問題。我們首先會提出一些有關付費會員報告以及我們的結果和預測的問題。

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?

我們的第一個問題來自 KeyBanc 的 Justin Patterson。而且，我會先針對格雷格。 Greg，您能否談談 2025 年停止報告 ARM 數據季度會員資格的決定？為什麼要消除這個？既然你說成功源自於參與，那麼你該如何考慮擴大這些揭露？

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。正如我們在信中指出的那樣，我們已經發展並將繼續發展，開發我們的收入模式並添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.

我們也改進了我們的定價和計劃，在不同國家/地區提供多層、不同的價格點。我認為這些價格點將會變得越來越不同。因此，每個增量成員都會產生不同的業務影響，而這一切都意味著，我們所做的歷史簡單數學（成員數量乘以每月價格）在捕獲業務狀態方面越來越不準確。

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.

因此，這項變化的真正動機是希望專注於我們認為對業務最重要的關鍵指標。因此，我們將報告並指導收入、OI、OI 利潤率、淨利潤、每股收益、自由現金流。我們將為我們的收入範圍添加新的年度指導，以便讓您有更長遠的看法。

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.

我們也不會對成員保持沉默。當我們成長並達到某些重大里程碑時，我們將定期更新，我們將宣布這些。它只是不會成為我們定期報告的一部分。我們希望深思熟慮地完成所有這些工作，並給每個人時間來調整這一過渡。因此，我們將繼續報告訂戶情況，直到明年第一季度，這與我們2025 年的下一個年度收入指引相關。 。但最終，我們認為這是一種更好的方法，可以反映業務的演變，並且它更符合我們內部管理參與、收入和利潤的方式。

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。關於參與度，格雷格，提醒一下，我們目前在半年一次的參與度報告中報告我們的參與度，引領行業並查看透明度和粒度。我們將在粒度上研究在此基礎上進行構建，這將是有點困難。我們目前的報告涵蓋了 Netflix 約 99% 的觀看量，但我們將以不同的方式查看規律性，以便更輕鬆地追蹤我們在參與度方面的進展。

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.

但重要的是，我們之所以關注參與度，是因為我們相信這是衡量會員對我們的產品滿意度的最佳指標，也是隨著時間的推移保留和獲取會員的領先指標。所以快樂的會員會多看一些。他們停留的時間更長。他們告訴朋友我們的北極星，這一切都會增加參與、收入和利潤。因此，我們相信這些是衡量串流媒體成功的標準。

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?

偉大的。謝謝你們，泰德和格雷格。我將帶我們繼續討論摩根士丹利 (Morgan Stanley) 的本·斯溫伯恩 (Ben Swinburne) 提出的下一個問題，他在兩年前提出，Netflix 停止增加會員。 Netflix 和/或更廣泛的行業內部的哪些變化解釋了我們今天看到的會員成長的顯著改善（不包括付費共享計劃）？換句話說，作為一家公司，您今天在哪些方面比 2022 年上半年做得更好？

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。我想說的是，我們正在做的事情是讓我們的會員感到興奮。這就是我們的出發點，也是我們早上起床的原因。我看看上個季度的情況。今年前 11 週中有 8 週，我們觀看了串流媒體排名第一的電影。前11 週中有9 週，我們推出了排名第一的原創系列，我指的是《阿凡達：最後的氣宗》、《格里塞爾達》、《少女》、《愛情是盲目的》、 《3 Body Problem》等熱門作品。所有這一切都發生在過去的幾個月裡。因此，熱門節目、電影和遊戲的持續、可靠和預期的鼓聲，就是我們所從事的業務。

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.

因此，如果你考慮一下這一點，以及我們如何在多種文化、多個地區提高品質和規模，我會看看上個季度，你會看到《愚弄我一次》、《有一天》、《紳士們》、《獨家新聞》、《超級熱鬧》 ]，小馴鹿，所有這些都是過去幾個月從英國來的。柏林、雪之協會、阿爾法男性，全部來自西班牙，而且都是最近幾個月才出現的。因此，這就是我們不斷建構、建構、建構的本地即興計畫之一，這對我們來說是一項相當新的舉措，我們最近在韓國舉辦的《Physical 100》第二季等活動取得了巨大成功，愛情是盲目的瑞典。這些都是難以複製的事情，我們每天都在變得越來越好，我們為團隊這樣做感到非常自豪。因此，請記住，參與度涵蓋了所有這一切，如果沒有出色的技術和產品，這一切都是不可能的。我們需要兩者兼具。

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，我認為這是對的。我的意思是，最根本的是所有那些令人驚嘆的系列、電影、遊戲、現場活動。但我們成功的關鍵組成部分以及我們不斷尋求改進的一點是為所有這些偉大的作品找到觀眾的能力。實現這一目標的部分原因在於有多少人向我們尋求娛樂。我們在這封信中提到了超過 5 億人。但其中一部分是我們所做的產品可以有效地將這些人與他們喜歡的遊戲聯繫起來，從而使我們能夠為我們認為他們可以在任何地方獲得的這些遊戲找到最大的受眾。我認為，正如你所提到的，特德，這適用於全球範圍內的世界各地的遊戲，這是非常令人興奮的。

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.

因此，當然，我們會尋求最大化粉絲群體以及對所有這些遊戲所具有的對話和文化時代精神的影響。當我們做得好時，當我們推出新遊戲時，就會對這個週期產生正面的影響。因此，就我們在哪些方面做得更好、我們在哪些方面做得更好而言，我們力求在所有這些方面都做得更好。如果我們能讓整個飛輪旋轉得更快一點，那麼這對我們的會員來說是件好事。這對於我們的遊戲來說很棒，對於創作者來說也很棒。

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?

謝謝你們，泰德和格雷格。讓我們繼續前進的是來自羅森布拉特的巴頓·克羅克特。關於我們的收入指導存在疑問，所以我將把這個問題轉給 Spence。 Spence，您能否解釋一下是什麼推動了全年營收減速，與今年第一季和第二季 15% 至 16% 的成長相比，全年營收成長了 13% 至 15%？其次，他還有一個關於第二季用戶成長的問題。這會高於還是低於 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。嗯，謝謝你的提問。首先，關於整體營收成長、全年前景，我對我們的成長前景感到非常滿意。所以我只想澄清這一點。

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，我們做了很多艱苦的工作，透過改進我們的核心服務（Greg 和Ted 剛才談到的）、推出付費共享、推出我們的廣告業務來重新加速業務和重新加速收入。這種重新加速真正開始於 23 世紀下半年，並且持續了一整年。因此，我們在 24 年後半段的成長其實是對那些硬競爭的比較。在我們收入預測的高端，即使在比較困難的情況下，我們下半年的成長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.

而且現在還早。我們還有很多事情需要執行。正如您在我們的信中看到的，隨著美元走強，一些外匯也出現了這種情況。這有點不利，所以我們將看看全年情況如何。但我們指導全年收入實現兩位數的健康成長，這是我們計劃實現的目標，也是該範圍所反映的。

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.

我想也許是——在這個問題中，我想，這有點像我們業務成長的真正前景，不僅僅是今年下半年，而是進入 25 年。現在提供真正的具體指導還為時過早，但我們將努力維持我們業務的健康兩位數收入成長。

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.

我們真的很喜歡擺在我們面前的這種機會。而且我們在各方面都那麼小。我們的收入機會大約只有 6%。在我們開展業務的每個國家，我們的電視份額都不到 10%。仍有數億家庭不是 Netflix 會員，而我們的廣告才剛開始。

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.

因此，正如您剛剛從格雷格和泰德那裡聽到的那樣，關鍵是不斷改進我們的服務，提高參與度，創造更多會員價值。當我們這樣做時，我們將擁有更多的成員。我們將能夠偶爾定價和增加價值，並為廣告商提供大量、高度參與的受眾。因此，關於 25 年的指導還會有更多內容，但我們對前景感到樂觀。然後我想問題的第二部分，我正在努力記住，史賓塞，對不起。

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──我會成為這件事上的壞人，史彭斯。所以第二個問題是，您預期第二季的用戶成長會高於還是低於去年第二季。

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.

所以巴頓，如你所知，我們不提供正式的訂戶指導。我們確實在信中向您表明，我們預計會有相當典型的季節性。因此，今年第二季度的付費淨增加將低於今年第一季度，這就是我們將在那裡提供的顏色的限制。

Thanks, Spencer.

謝謝，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。因此，為了跟進收入指導問題，我們邀請了來自 Oppenheimer 的 Jason Helfstein，他要求對全年收入指導的驅動因素提供更多信息，包括用戶增長與 ARM 增長以及這兩個動態將如何發揮作用。彭斯將其納入收入預測。

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

是的。我——你想讓我也拿這個嗎？

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。我會插話。但是，當我們考慮今年的前景時，就收入增長的組合而言，它與我們預計它將與您在第一季度看到的非常相似，其中主要由會員增長是由於全年付費共享的影響以及持續強勁的取得和保留趨勢。

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.

但我們也看到了 ARM 的一些成長。我們在第一季看到了這一情況，據報導約為 1%，外匯中性為 4%。我只想說清楚。 ARM 的價格變化進展順利。這就是為什麼我們看到了這些強勁的收購保留趨勢，因為它證明了我們的實力，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.

但我們只真正改變了幾個大市場的價格，即去年年底的美國、英國、法國，而且只改變了這些市場的部分計劃級別，甚至不是所有計劃級別。從那時起，這些國家大多是阿根廷以外的小國。正如您所看到的，在阿根廷，我們對當地貨幣貶值進行了定價，您可以在第一季外匯中性和報告的成長之間的差異中看到這一點。

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.

因此，您在今年的成長概況中看到的主要事實是，我們在過去兩年中並未真正考慮大多數國家/地區的定價。短期內我們也會遇到一些 ARM 類型的阻力，正如您在第一季看到的那樣。你可能會在今年的大部分時間裡看到，一，隨著我們推出付費共享，我們有一些計劃組合的轉變。因此，儘管它能帶來很高的收入成長，正如你在我們的數據、我們報告的成長中看到的那樣，第一季報告的強勁成長和今年的展望，但當我們推出新的付費會員資格時，他們往往會分拆為多種計劃等級的組合，其 SKU 價格比我們在終身會員中看到的價格低一些。

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.

正如您所看到的，我們也正在以良好的速度成長我們的廣告層，我相信我們會討論。而且貨幣化落後於那裡的成長。我相信我們也會討論這個問題。我們也有一些國家組合的轉變。因此，所有因素的結合導致 ARM 成長相當溫和——仍然有一些 ARM 成長，但第一季甚至全年都相當溫和。但同樣，關鍵在於這就是全部 - 我們正在以一種對整體收入成長真正健康的方式管理這一業務轉型，正如您所看到的，本季度報告的收入增長了 15％，今年的前景強勁。

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.

我們正在為未來的收入成長建立一個更持久和健康的基礎，透過更大的付費會員基礎和真正強大、規模化、高度參與的受眾，使其隨著時間的推移融入我們的廣告中，強大的付費共享解決方案也滲透到這些家庭。因此，我們將越來越多地看到我們的收入成長中的這種混合，今年我們開始看到其中的一些。

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?

偉大的。 Spence，下一個問題來自巴克萊銀行的 Kannan Venkateshwar，是問你的，你預計未來幾年利潤率成長軌跡會繼續維持目前的水平嗎？您能否獲得與傳統媒體利潤相當的利潤？

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%.

嗯，謝謝，坎南。我們的重點是每年保持健康的收入成長和不斷增長的利潤。這就是我們經常談論的內容。我們在信中也談到了這一點。我們對我們所提供的服務感到滿意。去年利潤率為 21%，高於前年的 18%。現在我們今年的目標是 25%，比年初我們指導的 24% 有所上升。

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，我們將採取嚴格的方法來平衡利潤率提高與成長投資。從歷史上看，我們一直很好地管理著這種平衡，不斷增加的內容投資、不斷增長的利潤、不斷增長的利潤率和不斷增長的現金流。您應該期望我們會繼續這樣做。但任何一年的年度利潤擴張量都可能會因外匯和其他投資機會而略有反彈。但同樣，我們致力於每年提高利潤率，我們看到從長遠來看，繼續提高利潤和利潤率還有很大的空間。

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.

謝謝你，史賓塞。我們的下一個問題來自 Loop Capital 的艾倫·古爾德。關於強制付費共享，我們處於哪一局？兩年前，您說 1 億訂戶與 UCAN 中的 3,000 萬訂戶共享密碼。您估計有多少人仍在藉用密碼？我將請格雷格回答這個問題。

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。正如我們上季度提到的，我們已經開始實施付費共享工作。因此，這只是我們長期以來一直在構建和迭代的標準機制的一部分，旨在將更多的娛樂價值和精彩的電影、連續劇、遊戲、現場活動轉化為收入。

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.

就像我們對產品體驗的所有重要部分所做的那樣，我們正在迭代、測試它、不斷改進它。因此，我們並沒有考慮超越特定群體或特定數字，而是更多地將其視為開發更多機制、更有效的方法來轉換與我們互動的人們，無論他們是藉款人還是之前的會員。我們稱他們為重新加入者，或從未成為Netflix 會員的人。因此，我們希望在正確的時間找到正確的號召性用語、正確的報價或正確的推動來讓他們轉換。

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。我們已經看到了一些改進，我們預計這種價值轉換機制將在未來幾季實現並促進業務成長。但我也非常相信，就像過去 15 年一樣，我們總是會在這個過程中找到需要改進的地方。甚至除此之外，在未來的幾年和幾十年裡，我們將致力於此並使其變得越來越好。

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，所有這些改進可以讓我們有效地吸引 5 億多智慧電視家庭中的更多人註冊並成為會員。斯彭斯提到了數億尚未到來的人。這是一種有效吸引更多人並使他們成為我們會員基礎的一部分的方法。

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，雖然我們完全預計訂閱人數會繼續增長，但整體業務增長現在有額外的槓桿和額外的驅動因素，例如計劃優化，包括額外的會員、廣告收入等，定價為更多價值，這點很重要。因此，這些槓桿也是我們成長模式中越來越重要的一部分。

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?

偉大的。我現在將討論一系列有關廣告的問題。第一個來自摩根大通的道格·安穆斯 (Doug Anmuth)。當您考慮可以對定價和計劃、合作夥伴捆綁和行銷進行調整時，擴展廣告層級的最重要驅動因素是什麼？如何讓人們克服困難——每小時幾分鐘的廣告仍然可以以合適的價格獲得非常好的體驗？格雷格，你為什麼不拿走那個？

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內容都很重要。我想說的是，我們通常會採用整個劇本，以及我們學到的有關如何發展會員的所有內容，現在我們將其應用到我們的廣告圖層。很明顯，這意味著合作夥伴管道。它意味著設備整合、捆綁、整合支付。這些都是重要的成長工具，就像它們現在並將繼續出現在我們的非廣告產品中一樣；人們越來越意識到我們的廣告體驗質量，特別是相對於線性電視廣告體驗而言，在許多國家，線性電視廣告體驗確實相當差。當我們談論行銷和意識建設時，這是一個重要的迭代工具。這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.

價格低廉，對消費者來說很重要。 $6.99 是在美國的多流、全高清下載的範例。我們認為這是一個巨大的娛樂價值，特別是在我們擁有行業領先的低廣告負載的情況下。所以這也很關鍵。

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.

因此，我認為您可以看到利用所有這些機制以及更多機制的結果，以及我們的廣告層在過去幾季中如何擴展。因此，上個季度我們的季度環比成長了 65%。這是繼兩個季度環比增長約 70% 之後的結果。對我來說，令人興奮的是，即使我們已經擴大了基數，成長率仍然很高，因為顯然數字表明，這意味著每個季度都有更多的絕對增量。所以我們在那裡取得了良好的進展。

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.

但你看，在擴充方面我們還有很多很多工作要做。在有效進入市場、更多技術功能、更多廣告產品方面，我們還有更多工作要做。廣告方面我們還有很多工作要做。

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?

偉大的。 Greg，我們的下一個關於廣告的問題來自 LightShed 的 Rich Greenfield。他有一個由三個部分組成的問題。第一部分，您能否向我們介紹一下您對廣告圖層和無廣告層之間的最佳分佈的最新想法？其次，與您最初評論的去年 8 至 9 美元的範圍相比，您的廣告 ARPU（不包括訂閱費）是否大幅上漲？最後，您能否讓我們了解一下，如果供應不超過需求，ARPU 會是什麼樣子？

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。我會選擇第一個，然後可能會將 ARPU/ARM 點交給 Spence。我們對於最佳價差沒有固定的運營商立場。就像我們在一般價格變化方面所做的那樣，我們確實使用來自客戶的訊號，例如計劃接受率、轉換率、客戶流失率等，來引導我們沿著迭代路徑獲得正確的定價。

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.

我認為還值得注意的是，正確的定價並不是真正的靜態定位。隨著我們不斷發展和改進我們的產品，這種情況也會改變。但我認為，從長遠來看，對我們來說一個很好的總體指導方針是，讓我們的廣告和非廣告產品之間的整體貨幣化程度大致相同，這對我們來說是健康的。因此，這實際上取決於什麼對任何特定會員最有效，而且這實際上是會員選擇他們認為最適合他們的計劃。

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

然後我會將 ARM 問題交給 Spence。

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。因此，就ARM 和你的問題而言，Rich，就我們現在的表現而言，相對於我們首次開展業務時所討論的情況，正如格雷格所說，我們的庫存一直在以相當快的速度增長。因此，貨幣化並沒有完全跟上規模和庫存的成長，因為我們仍處於建立銷售能力和廣告產品的早期階段。但這對我們來說是一個機會，因為我們仍然是一個非常優質的內容環境，受眾參與度非常高，而且規模不斷擴大。因此，我們的每千次曝光費用仍然強勁。

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，我們正在增強我們的能力。因此，隨著時間的推移，收入將隨著參與度的增加而增長，而且已經在不錯的增長，這在一個小基數基礎上就已經很不錯了。所以，正如 Greg 所說，這對 ARM 現在意味著什麼，這對我們的 ARM 來說是一個拖累，因為相對於供應而言，我們的貨幣化程度較低。但隨著時間的推移，我們預期廣告層的收入將相似，即訂閱以及廣告收入與此類非廣告產品的組合。這就是我們的想法，但隨著時間的推移，我們正在努力實現這一目標。

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.

偉大的。關於廣告的最後一個問題來自瑞銀集團的約翰‧霍杜利克。您如何處理今年的預付款？您是否認為廣告支援用戶群現在的規模足以使前期承諾能夠推動廣告收入發生有意義的變化，並為 2025 年 ARM 的成長做出貢獻？所以也許，特德，也許你可以開始，然後，格雷格，隨後跟進。

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.

是的當然。首先，也是最重要的，這是我們的第二個前期工作。我們非常高興能夠與廣告商分享我們非常非常自豪的令人難以置信的名單。因此，他們將立即觀看一些即將播出的節目，例如全新一季的《Bridgerton》、《Sweet Tooth》和《That 90s Show》；我們即將舉辦一些大型即興活動，例如我們的湯姆布雷迪烤肉活動；以及全新節目，如《Dead Boy Detectives》和 Shane Gillis 的新節目《Tires》； 《艾瑞克》是一部由班尼迪克康柏拜區在英國推出的精彩新限定劇，我們對此感到非常興奮。

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.

然後他們甚至會更長時間地關注下半年即將發生的事情，即《眼鏡蛇凱》、《巴黎的艾米麗》、《夜間特工》、《外灘群島》的回歸季；和我們的大遊戲《魷魚遊戲》；以及瑞安墨菲(Ryan Murphy) 的全新一季《怪物》，這是萊爾和埃里克梅南德斯今年的故事，與我們的廣告商分享這將是一件令人難以置信的事情；全新原創系列和限量系列，如 Pete Berg 的 American Primeval； [胃灼熱] 全明星陣容，妮可·基德曼和列維·施瑞博爾；塞納，這是關於這位偉大的巴西一級方程式賽車手的精彩限量系列賽，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.

而且，我還回顧了我們今年年底即將推出的早期電影，例如艾迪墨菲和他最具標誌性的角色阿克塞爾弗利（Axel Foley），《比佛利山刑警：阿克塞爾弗利》（Beverly Hills Cop: Axel Foley）；繼續;一部大型新動畫長片《Spellbound》。因此，我們在前台為觀眾準備了許多娛樂節目。

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接觸並審視我們產品的基本原理的機會。我的意思是，首先也是最重要的是，這是一個令人難以置信的品牌希望與之聯繫的遊戲清單。聽到這個名單真是太令人興奮了。我們的廣告層會員積極參與。我們有機會進一步發展這一點。我們認為這再次與這些頭銜的力量有關。

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.

正如我們所提到的，我們的規模正在迅速擴大。這是我們從廣告商收到的第一個要求。所以這很令人興奮。我們正在廣告產品衡量等技術功能方面取得進展。所以我們很高興能把它推出來。事實上，這只是一個機會，將所有這些進展打包給廣告商，然後——當然，從他們那裡獲得意見，因為我們知道他們將會有評論，他們將會有他們希望我們繼續努力的事情；然後真的只是繼續這一旅程，因為我們知道要實現我們在該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.

所以我想說我們將繼續在這裡發展。就對已經規模龐大的業務的影響而言，我們的成長基礎相對較小。因此，儘管它增長得相當快，但需要一段時間才能發展到實質的程度。因此，我們期待 - 在 25 年增加，然後在 26 年及以後進一步增加。

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?

偉大的。現在我將把我們轉向圍繞內容的幾個問題。第一個，我將直接聯繫特德。關於為什麼我們不花更多錢是一個罕見的問題。鑑於目前 Netflix 收購和授權內容的背景似乎非常有利，為什麼不更積極地投入呢？今年花費超過 170 億美元的現金是否有意義？

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。無論許可內容的可用性如何，您都應該看看它 - 我認為我們 - 我們一直對業務投資和發展方式非常嚴格。透過合理花錢、製作精良的節目以及獲得正確的內容，我們可以獲得很多回報。

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.

毫無疑問，許可證方面的閘門已經打開了更多。但我們再次強調，我們非常關注那些我們認為能夠推動業務發展的領域。因此，我認為，以我們目前的支出水準和當前的成長率，我們可以放心地支出僅落後於預期的成長率。

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.

而 Ted、Jason Helfstein 的後續內容也是關於授權內容或二輪內容。他的問題是第二次——更多的第二輪許可證將如何影響你的利潤和自由現金流。

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，所以這都是我們在內容上支出的一部分。從自由現金流經濟角度來看，我們的現金流量與內容支出的損益表非常接近。所以我認為這不會產生太大的影響，除非你想為此添加一些色彩，斯彭斯。

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.

我只是喜歡你談論我們內容預算的紀律，泰德。這讓我開心。不，我同意這一切。我的意思是，是的，我們利用機會來花錢，但我認為，我們也有謹慎的限制和紀律。

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.

需要明確的是，就像我們一樣 - 正如你所說，有更多的許可內容機會，但我們的絕大多數內容支出仍然用於原創節目。確實如此，而且很可能會繼續如此。因此，我們將始終為我們的會員提供豐富的授權內容來補充其多樣性和質量，但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?

偉大的。下一個問題來自古根漢的麥可莫里斯。具體是關於傑克·保羅和邁克·泰森爭奪泰德的比賽。即將到來的傑克保羅與邁克泰森之戰的哪些特點使您有興趣投資此類體育節目？該內容對您的會員群和廣告成長目標有何幫助？

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.

所以我們正處於開發直播節目的早期階段。我認為這是我們提供的內容類型的擴展，我們擴展到電影、無劇本、動畫以及最近的遊戲的方式。

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.

點播和串流媒體對於消費者的選擇和控制來說是令人難以置信的，它確實將電視的控制權重新交到了消費者手中，這確實是驚人的。但人們聚集在客廳的電視機前同時觀看某些內容也有一種不可思議的魔力。我們相信，像傑克保羅和麥克泰森之戰這樣的重大文化時刻，正是我們希望與我們的會員一起贏得這些時刻的電視節目。所以，對我來說，這就是其中令人興奮的部分。

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.

除了打鬥本身之外，下個月的 Netflix Is A Joke Festival 上我們還有幾個晚上的現場喜劇表演。從 1 月開始，我們將透過 WWE Raw 提供為期 52 週的體育賽事直播，每週都會在 Netflix 上向我們的會員提供。我們認為即時觀看這些內容將帶來真正的增值。

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.

我們將繼續嘗試很多新事物。但它的核心是，我們的會員是否喜歡它。從傑克保羅-麥克泰森之戰早期的興奮程度來看，世界各地將會有很多人在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，正如特德談到的這些大型文化活動與會員相關一樣，這也與廣告商相關。因此，這對我們來說是一個擴大廣告服務的機會，讓這些品牌能夠接觸到這些定義文化的時刻。

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，特德和格雷格。我個人很期待那場比賽，我的錢都押在鐵人麥克泰森身上。但作為運動的後續......

Bold. Bold.

大膽的。大膽的。

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，我認為他仍然明白。但作為泰德提出的體育問題的後續問題，隨著您繼續擴大Netflix 規模並變得越來越大，並可能獲得更多影響力，您的體育策略將如何改變，超越您今天主要圍繞體育娛樂所做的事情？

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。我們說過很多次了，但不是反對體育，而是支持獲利成長。我認為這是我們在各種節目中所做的一切的核心，包括體育節目。因此，我們的北極星是提高參與度、收入和利潤。如果我們找到機會推動這三者的發展，我們將在越來越廣泛的優質娛樂領域做到這一點。因此，當這些機會到來時，我們可以介入並做到這一點，就像我們在與WWE的交易中所做的那樣，如果我們可以在其他事情上重複這些動態，包括體育運動，我們肯定會考慮它。

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，我們在沒有虧損領導者的情況下建立了一個龐大的業務，這給我們帶來了好處，而且我們仍然相信，正如您所看到的那樣，我們可以在這條道路上成長。因此，我認為其核心是，我們將以與電影製片人和電視網絡討論播放我們的內容時相同的紀律來看待這些機會。

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.

偉大的。下一個問題來自 LightShed 的 Rich Greenfield，關於我們的電影策略。因此，對於特德來說，《紐約時報》最近的一篇文章引用了Netflix 新任電影主管丹·林(Dan Lin) 的內部通訊，他表示：「我們的目標是讓Netflix 的電影更好、更便宜、頻率更低。每個人都想製作更好、更便宜的電影，但我們很難相信——我們很富有，很難相信有一個神奇的公式。幫助我們了解丹·林（Dan Lin）與斯科特·斯圖伯（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.

謝謝你提出這個問題，里奇。我會讓你回到《紐約時報》的那篇文章，因為那不是丹的引述。我想說的是──我們也沒有參與那篇文章。我想說的是，要明確的是，我們沒有興趣製作更少的電影，但我們有無限的興趣製作更好的電影。儘管我們已經製作了並且正在製作很棒的電影，但我們當然想讓它們變得更好。

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。他幾週前剛加入，並以每小時 100 英里的速度加入了我們。貝拉公開表示，我們的策略仍然是多樣性和質量，她在為我們的內容和內容組織帶來新思維方面做得非常出色。讓丹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.

我們想要有很多電影。我們希望他們能讓我們的觀眾興奮不已，他們都有不同的品味，我們希望他們都很棒。因此，我們對什麼是品質採取以觀眾為中心的觀點，丹透過為我們製作而知道這一點。作為 Rideback 的首席執行官，他為我們製作了奧斯卡提名電影《兩位教皇》。他最近為我們製作了《阿凡達：最後的氣宗》。所以他非常非常了解 Netflix 和觀眾。他在真人秀和動畫方面的成功在業界很難定義。所以我們很高興他在這裡做這件事。

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.

偉大的。謝謝你，泰德。下一個問題來自巴克萊銀行的 Kannan Venkateshwar。既然付費分享已基本成為過去，您能否提供有關參與趨勢的最新資訊？所以我先把它交給 Ted，然後 Greg，你可以隨意補充。

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，看，重要的是要注意，我們每天、每時每刻、無論在哪裡，都在爭奪每一個小時的觀看時間。我們認為，參與度報告非常重要，該指標也很重要，因為它是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.

我知道我十分鐘前就說過了，但我要重複一次。今年前 11 週中有 8 週，我們的電影排名第一；今年最後 11 週中有 9 週，我們獲得了排名第一的系列賽。這是根據尼爾森串流數據得出的。對我們來說，這就是我們特別關注的。事實上，我們在尼爾森數據中看到，即使在這個競爭極其激烈的領域，我們的份額也略有上升，因為很多人都在爭奪注意力、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，Ted，我想你可以重複 11 中的 8；；就我而言，9次、11次都可以。

I'm going to close with that too.

我也將以此結束。

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.

正如我們所說，由於我們在密碼共享方面所做的工作，我們基本上切斷了一些非付費觀眾的聯繫，因此，我們將失去一些與此相關的觀看次數。因此，當您看到我們的下一份參與度報告時，您將看到我們的整體絕對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.

但是，儘管存在這種影響，並且儘管特德指出了激烈競爭帶來的普遍壓力，但我們認為我們的參與仍然是健康的。您可以在特德（Ted）根據尼爾森收視率和我們在美國電視時間的適度增長方面顯示的統計數據中看到這一點。

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.

但我們也希望對參與度有比較的看法。因此，我們研究了不受付費共享影響的人口，也就是我們所謂的業主家庭。 2024 年第一季度，每個帳戶的瀏覽時間與去年同期持平。所以這是一個很好的跡象，表明我們的參與正在持續，並且它在某種程度上消除了圍繞付費共享的噪音。

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.

我想再次重申，我們認為我們有足夠的空間來提高參與度，對吧？即使在我們最成熟的市場，我們的電視播放時間仍然不到 10%。因此，我們還有巨大的成長空間。

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?

謝謝你們，泰德和格雷格。現在我將引導我們討論一系列有關計劃、定價和定價策略的問題。富國銀行的史蒂夫·卡霍爾（Steve Cahall）、格雷格（Greg），隨著你們繼續擴張，你認為定價有上限嗎？如果是這樣，我們距離成熟市場的上限還有多遠？您是否設想 Netflix 在這裡提供內容，以便您可以繼續擴展您的內容類型並進一步細分您的客戶群？

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。我們在天花板上沒有固定的位置。我的意思是，當然，您可以將付費電視視為人們以前消費過的潛在標記。但我們其實並不認為它是由它來定義的。我們認為這是一個繼續我們一直在努力的過程的機會，那就是讓我們繼續嘗試和明智地投資，增加更多的娛樂價值。當我們增加更多的娛樂價值時，當然，我們可以回到我們的訂閱者那裡，要求他們多付一點錢來保持這種良性循環。

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.

事實上，我們在電視上獲勝的時間段的上行潛力是我們的標誌，我們稱之為“真理時刻”，我們再次獲勝，即使是在我們最成熟的情況下，這一比例也不到10% 。那裡有很多空間。您可以使用我們競爭的市場和類別中的娛樂消費者總支出。因此，我們還有很長的路要走，要做好這項投資，提供更多價值，然後要求人們多付一點錢。

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?

偉大的。下一個關於定價的問題來自伯恩斯坦的馬克·什穆里克（Mark Shmulik）。能否分享一下英國和加拿大基本計畫退休的進展？如果我們預計何時在美國推出類似的產品，您有什麼顏色可以分享嗎？格雷格，你為什麼不拿走那個？

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 23 年第 4 季的信中所分享的那樣，我們計劃在一些廣告國家/地區停用我們的基本計劃。我們現在已經在加拿大和英國啟動了這一流程，與您所看到的非常相似 - 您看到我們在付費共享方面所做的事情，我們將努力實現平穩過渡。其中一部分是在我們採取進一步行動之前聽取我們成員的意見，因此我們沒有什麼可宣布的，我們真的很想看看事情進展如何。

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本會員來說是一個變化，但我們認為我們為他們提供了強大的產品。他們將以更少的錢獲得更多的內容，2 個串流媒體與 1 個串流媒體相比。當然，不言而喻，希望會員如果願意也可以隨時選擇我們的無廣告方案。

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?

偉大的。謝謝你，格雷格。關於整體資本配置的幾​​個問題。因此，對於 Spence 來說，這些內容主要來自 TD Cowen 的 John Blackledge。您在投資者信函中提到了不斷發展的資本配置策略以及新的投資等級地位。您能談談投資者如何看待這項變化嗎？

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。這確實是我們資本配置策略的一個適度的演變，以更好地反映我們的投資等級地位。事實就是如此。我們仍將採用相同的財務政策和原則，透過對核心業務進行再投資來優先考慮盈利增長，保持健康的資產負債表和充足的流動性，並在資產負債表上返還超過數十億美元的多餘現金。

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，唯一的變化是，現在我們已經達到了穩定的投資級別，我們將——雖然我們的資產負債表上仍將持有數十億美元的現金，但我們不會再有兩個月的相同標記的收入。相當於資產負債表上兩個月的收入，讓我們的效率更高一些。我們還擴大了今天宣布的左輪手槍規模，從 10 億美元增加到 30 億美元，這也讓我們有更多獲得資本的機會和更好的現金效率。

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.

然後，再一次，除此之外的任何現金，我們都將返還給股東。從歷史上看，我們主要是一家建構而非購買的公司，透過併購來選擇策略加速。目前還沒有任何計劃，但這仍然是我們的理念，即以建設為主。隨著到期日的臨近，我們也將為我們現有的債務進行再融資。但我們不打算透過股票回購來提高槓桿率。我們希望－我們確實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?

偉大的。謝謝你，史賓塞。最後一個關於資本配置的問題。這來自貝爾德的維克拉姆。您對 2024 年之後業務的適當內容支出水準有何最新想法？特別是在過去，您提到了 1.1 的現金含量支出與攤銷比率。現在還是這樣嗎？您需要看到什麼才能有機會有意義地超越該框架？

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。它仍然成立。它仍然成立。所以我們仍然是基礎的——缺點是我們確實能夠做到這一點。正如我們所說，我們一直致力於推動營收成長的加速，繼續發展我們的業務，並提高我們的獲利能力。當我們這樣做時，我們預計將繼續增加我們的內容投資，因為我們歷史上一直在影響力最大的領域進行投資，但在那裡也非常自律。因此，我們希望增加自由現金流。因此，我們相信我們可以將現金內容支出相對於損益表支出控制在約 1.1 倍。這會導致整體收入成長、利潤增加、利潤率增加、自由現金流增加。這仍然給了我們很多機會去投資格雷格和特德一直在談論的所有這些內容和娛樂類別。

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，史賓塞。我們還有幾分鐘的時間，因此我們將提出一些更高層次的問題。下一位來自高盛的艾瑞克謝裡登。我認為特德和格雷格都可以解決這個問題。問題是您對短影片消費帶來的競爭影響有何看法？

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.

所以我研究了人們觀看什麼以及何時觀看，彼此之間有很大的關係。有哪些選擇以及他們有多少時間？因此，我們的短片版本更像是讓我們的會員能夠觀看他們正在追捧的連續劇中的 10 分鐘（如果他們只有 10 分鐘的時間）。

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——他們也看——當我查看 YouTube 和 TikTok 上的短片觀看內容時，其中一些內容與我們的觀看內容相鄰且相當互補。因此，我們的預告片或創作者表達了他們對我們節目的狂熱，例如發布週三的舞蹈或觀看《有一天》的醜陋哭泣，所有這些都會成為病毒式的轟動，實際上增加了我們節目的粉絲。

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.

話雖這麼說，其中一些觀看次數與我們直接競爭，就像與向 YouTube 提供內容的其他媒體公司一樣。這種藝術一直在尋找兩者的適當平衡。因此，我還要指出，這些平台是產生新聲音的一種方式，我們也一直關注著他們，並試圖將他們培養成 Netflix 的下一代偉大的故事講述者。

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.

偉大的。我認為對於我們的最後一個問題，我們將從新街研究公司的丹·薩爾蒙那裡得到這個問題。 Netflix 在近期和長期利用生成式人工智慧技術的機會是什麼？隨著這項技術的不斷快速發展，您認為優秀的說故事者應該關注什麼？請我把它轉給格雷格。

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。我認為值得注意的是，近 20 年來我們一直在利用 ML 等先進技術。這些技術是我們推薦系統的基礎，幫助我們為我們的作品找到最大的受眾，並為我們的會員提供最大的滿意度。因此，隨著新技術的出現和發展，我們很高興能夠繼續參與和改進這些系統。我們也認為，從我們已經開發的一般能力以及我們已經開發的系統來完成所有這些事情的方式來看，我們處於有利地位，可以成為採用和應用這些新方法的先鋒。

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​​作者開發和提供新工具，讓他們以更引人注目的方式講述自己的故事。這對他們來說太好了。這對於故事來說很棒，對我們的會員來說也很棒。

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.

說故事的人該關注什麼？我認為說故事的人應該專注於講精彩的故事。透過電影、電視劇、遊戲來傳達驚心動魄的故事是非常困難且複雜的。說故事的人在實現這一目標方面發揮著獨特而關鍵的作用，我們認為這種情況不會改變。

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.

偉大的。非常感謝你，格雷格。現在我們已經沒時間了。因此，我要感謝大家花時間收聽我們的財報電話會議。我們期待下個季度與大家交談。謝謝。