Welcome to the Netflix Q2 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. As a reminder, we'll be making forward-looking statements and actual results may vary. We'll now take questions from the sell-side community that have been submitted and we'll begin with a set of questions on our Q2 results and our forecast. So the first question on our results comes from Doug Anmuth of JPMorgan. So Spence, Doug asks, can you provide some color on how churn is trending and perhaps share some color on what drove revenue growth in the quarter?

Yes, sure. Thanks, Doug, and thanks, Spencer. We're pleased with our performance in Q2. There was strong performance across the board, good momentum across the business, strong revenue growth, member growth and profit growth. In terms of that member growth and churn, I'd say that the kind of outsized paid net-adds in the quarter was primarily driven by stronger acquisition, a little stronger than we expected, but also very healthy, continued healthy retention in the quarter and that's across all regions. In terms of growth generally, there are probably three key factors that drove member growth. First, strong performance of our content slate, a wide variety of titles that delivered across genres and regions and I'm sure we'll talk more about that. There was some positive impact from paid sharing that continues. As we've said on recent calls, it's tougher and tougher to tease that out. We're clearly seeing healthy organic growth in the business, but we're also continuing to get better at translating improvements in our service into business value, including getting better and better at converting unpaid accounts. And at least on the paid member front, we're also probably benefiting from that attractive entry point in terms of price point and feature set for our ads plan. So you put all that together and it was a nice quarter for subscriber growth, but even more importantly, a nice quarter in terms of driving healthy revenue growth and healthy profit growth. So 17% reported revenue growth and margins that were up 5 percentage points year-over-year.

Thanks, Spence. Doug also has a follow-up question on the results. We noted that India was our second and third country in terms of paid net-adds and percent revenue growth in the second quarter. Do you feel like you're hitting more of an inflection point in that market? Or is that more about a very specific successful content slate in Q2?

Ted, do you want to take it or?

Yes. Well, look, I think India's growth is a story that we see around the world playing out very similarly. So you look at the concept, the product market fit is what drives our ability to attract members and retain members and monetize with them as well. So I feel like what's going on in the quarter has been this ongoing build. We had this great show here on Monday. Sanjay Leela Bhansali, SLB, is one of the most celebrated filmmakers in India and he took on this incredibly ambitious series and brought it to screen on Netflix, directed every episode, and it's our biggest drama series to date in India. So on top of that, our original films and our licensed films as films in the pay-TV window immediately following theatrical have continued to thrill our members. So if we pick them well, we program well, we improve the product market fit, we improve engagement, we grow members, we grow revenue. It's the same formula I think everywhere else, everywhere we go, and there's certainly plenty of room to grow in India as long as we keep throwing our audiences there.

Thank you, Ted. Our next question on the results relates to operating margin and the question comes from Jessica Reif Ehrlich of Bank of America. For Spence, how should we think about the pace of margin expansion going forward and the drivers of the margin outperformance this year?

Thank you, Jessica. Regarding margin expansion, we are pleased with our current trends. Our main goal is to maintain healthy revenue growth and increase margins each year. We are optimistic about our performance. As mentioned in our letter, we are now aiming for a 26% full-year operating income margin, up from our previous target of 25%, which represents a 5 percentage point increase year-over-year if we achieve this. However, the annual margin expansion could vary from year to year due to factors such as foreign exchange fluctuations or other business considerations. Nonetheless, we are committed to growing margins annually and believe there is significant potential for increasing both profit margins and absolute profit dollars over the long term.

Thank you, Spence. Our next question comes from Steven Cahall from Wells Fargo and it's regarding free cash flow. So the question is, Netflix has raised their full-year revenue and margin outlook, but did not change their free cash flow forecast of approximately $6 billion. Is this just a pull-forward in cash content spend or is there anything else that is impacting your free-cash flow guidance?

I'll take that. Nothing else is impacting it. As we've noted, we continue to expect approximately $6 billion of free cash flow for the year. There's always some uncertainty in terms of timing for things like content spending and sometimes taxes. So that keeps us holding at around $6 billion, but there are no other insights beyond that.

Thank you, Spence. We have our quarterly question on paid sharing next from John Hodulik of UBS, which I'll direct to Greg. The question is, do you still have upside from the paid sharing initiative? And have you moved forward on mobile paid sharing? And if so, how big of an opportunity is this?

Yes, Spence provided some insights on this quarter's performance. I'll discuss it from a long-term viewpoint. As we've indicated for several quarters now, we have effectively integrated paid sharing into our product experience. We acknowledge there are still significant areas for improvement, and we consider these as part of the overall opportunities to enhance the product experience. We continuously prioritize these opportunities based on their expected value. For example, even aspects we've been refining for over a decade, such as our sign-up flows and the user experience when consumers want to sign up for Netflix, have yielded multiple improvements over the last few quarters that resulted in notable incremental revenue gains. We'll keep exploring all these opportunities to enhance experiences for members and for the business. We aim to iterate and improve this as a mechanism to translate value. We want to effectively convert the value created by our teams in film and series, as well as our increased live events and games, into revenue so we can continue investing and sustain the momentum. If we can enhance this value translation mechanism each quarter while also improving the entertainment offerings, these two elements will compound and propel the business forward through this year and into 2025 and beyond. This will help us convert more of the growing number of Smart TV households worldwide that are not currently members into subscribers. It will also support our other growth strategies like plan optimization, extra members, ad revenues, and pricing into more value. I see this as ongoing work that we're committed to for decades to come.

Thank you, Greg. I'll now move us along to a series of questions about advertising. And we'll start first with Barton Crockett of Rosenblatt and I'll point this question to Spence. You say that advertising is not a primary driver of revenue growth yet. Can you provide a little more clarity on what that means for both '24 and '25?

Yes, sure. Thanks. So stepping back, I'd say we're very pleased with how we're scaling our ads business. We talked about that in our letter. We've been primarily focused on scaling reach. But if you think about even just the revenue portion of ads, it is growing nicely. The rate of growth, it just happens to be growing off of a relatively small base because we're starting from only 18 months into ads so to have the kind of a primary revenue impact across a business that has been primarily subscription for a long time that just takes some time. So we're scaling well through reach, through engagement, through growing inventory, and that represents opportunity for us over a multiyear trajectory to have a big and increasing revenue and profit impact on the business. So again stepping back, we feel really good about our position, our ability to sustain healthy revenue and profit growth. Ads is kind of one more tool in our tool chest there. We're doing the hard work now to improve our service across the board. So we finished the year strong in '24 and drive growth into '25 and beyond. We're small in every measure. We talk about it a lot. We're small in share of TV time. We're small in terms of penetration of connected TV homes. We're small in revenue market share. And we're going to grow in those areas across the board and ads going to be a bigger piece of that puzzle. Just we won't have it be primary in '24, '25, but it contributes. It's a meaningful contributor. That's what we've said and that's what it is doing. And then when you get into '26 and beyond, it can be even more meaningful and hopefully becomes to the point where it is a primary contributor given all of that engagement and reach that we're building.

Thank you, Spence. A follow-up question on advertising comes from Ben Swinburne of Morgan Stanley and I will direct this to Greg. Looking into your advertising revenue ramp into 2025, what are the key areas that need to improve to bring in significantly more revenue? Can you talk about the opportunities and challenges scaling up your direct sales efforts and leveraging third-party sources of demand, primarily programmatically?

Yes, we have emphasized that our top priority is scaling, and we've been intensely focused on that. The good news is we've made significant progress in this area. Our ads member base has grown rapidly from zero two years ago to where we are now. We are pleased to announce that we are on track to meet our critical scale objectives for all of our ads markets by 2025. We anticipate further growth beyond that, but reaching this threshold is essential for us to continue expanding and enhancing our appeal. This progress enables us to divert more of our efforts toward effectively monetizing our rapidly increasing inventory. There are two main areas for growth. First, we are enhancing our go-to-market capabilities by increasing the number of sales and ads operations personnel, thereby improving our ability to serve advertisers. A significant aspect of this is offering advertisers more efficient purchasing options for Netflix, as we have received valuable feedback regarding this need. By integrating demand sources into their existing processes and systems, we make it easier for them to buy, and in some cases, this has been crucial for them to consider us as a viable option, which will lead us to expand our buyer base. The second major growth area is in our product and technology infrastructure. We are in the process of building our own ad server and are excited to launch it in Canada this year, with plans for the rest of our ads markets in 2025. This development will open up a range of innovations aimed at enhancing the user experience for our members on ad tiers and improving features for advertisers. We are concentrating on enhancing targeting relevance and capabilities, as well as refining measurements on return on investment, return on ad spend, and incrementality. Ultimately, our goal is to combine the strengths of digital advertising—such as effective targeting and measurement—with the unique advantages of TV advertising, which offers a powerful creative format. This blend allows us to place advertisements alongside engaging content that resonates in social conversations, which is crucial for advertisers. There's a significant amount of work ahead, and we have years of initiatives to pursue, but we are committed to advancing in this direction.

Thank you, Greg. From Steven Cahall, his question is, given what we think are pressures on AVOD CPMs and the 10 hours per account per month viewing time you disclosed at the upfront for ad-supported members, what's the likelihood that ad supported ARM drops below ad-free member ARM in the second-half? Would you consider raising the price of ad-supported tiers as an offset?

Certainly. To clarify, our engagement with our ad plans is quite similar to that of our non-ad plans, with members averaging around two hours of viewing per day across all plans, which you can see in our global engagement reports. This average also applies to members on our ad plans. Regarding ad revenue per member, due to our rapid scaling, we are currently unable to fully meet the increasing demand for our ad inventory, resulting in our ad revenue per member being lower than that of our non-ad members. We see this as a significant opportunity for growth as we expand in this area. When it comes to pricing for our ad tier, we consider it similarly to our non-ad tier. We appreciate having a lower entry price, as it allows greater accessibility to our ad markets, enabling more people to enjoy our storytelling. As for potential price increases, we aim to enhance the value we provide to all our members, which includes offering more films, series, live events, and games. Once we have insights into member acquisition, engagement, retention, and churn, we can determine the right time to ask our members for a slight increase in price to keep our momentum going. We will approach this in the context of our ad offering just as we do with our non-ad offering.

Thank you, Greg. John Hodulik from UBS asks, can you provide an update on the CTV ad environment and update us on initial feedback from advertisers on your ad tech initiative? What features do you expect to add with the ad tech build? And anything you can tell us about the costs associated with it?

There's a lot of excitement among advertisers about our work. The primary feedback we are responding to is the need to provide more ways for advertisers to buy on Netflix. Advertisers have clearly communicated that these options are either a significant improvement or a necessity for them. Beyond that, there's a lot of enthusiasm for enhancing ad relevance, targeting personalization, better measurement, and incrementality—things we plan to develop over the coming years. The main negative feedback we've received is that these features are not available yet, and advertisers want them in place immediately. We share that desire and are committed to working hard to develop these features as quickly as possible and to bridge that gap. There's still a lot of work ahead, and I'm confident that as we introduce these features, new requests from advertisers will emerge, and we will be excited to pursue them.

Thank you, Greg. And our next question is for Ted, coming from Rich Greenfield of LightShed Partners...

Hey, Spencer.

Yes.

Spencer, I apologize for interrupting. It seems we didn't address the cost issue, unless I missed something. I can add if you'd like. Everything that Greg mentioned about investing in the business is included in our margin guidance. We're constantly making trade-offs within the business, and our expenses are up 7% year-to-date. If you look at the bigger picture, we are projected to exceed $28 billion in total expenses for the year, and we still anticipate a five percentage point improvement in our margins. We aim to run the business like owners, making informed trade-offs and investing in growth areas like live services, advertising, gaming, and product innovation, both this year and next year, where we expect to drive revenue growth and increase our margins while investing in ads.

Thanks, Spence.

Yes, thanks for keeping us on this, Spence. So next question is for Ted coming from Rich Greenfield of LightShed Partners. Is your recent agreement to stream two NFL games on Christmas Day signaling that you need live sports to build a robust advertising business or are you trying to create a regular cadence of high-profile live events to bring advertisers onto Netflix platform who will then spend across your broad array of entertainment content?

Thank you for the question, Rich. Let me clarify. We're focused on live content because our members enjoy it, which drives significant engagement and excitement, both of which are valuable. Advertisers appreciate this too for the same reasons, so our interests align. When we launched the Chris Rock: Selective Outrage special last year, we demonstrated that Netflix, known for on-demand viewing of popular shows and movies, would also deliver exceptional exclusive live entertainment. Since then, we've hosted a golf tournament featuring top PGA stars and Formula 1 drivers, a tennis match with Nadal and Alcaraz, a live comedy show with Katt Williams, and an entire week of innovative live talk show episodes from John Mulaney, culminating in our biggest live stream yet—the roast of Tom Brady. Coming up, we have a live show with Joe Rogan, a much-anticipated hot dog-eating showdown between Chestnut and Kobayashi, a boxing match between Mike Tyson and Jake Paul in November, and two exciting NFL games on Christmas Day. This fast ramp-up leads directly into weekly live coverage of WWE. It’s this thrilling excitement and engagement that our audience loves, and we’re pleased that our advertisers are excited about it too.

Thank you, Ted. Rich has a part two to this question, not surprisingly, how do you thread the needle on licensing sports to drive advertising spend without becoming beholden to leagues at renewal?

Hopefully, we are achieving this by creating unique Netflix events that do not heavily rely on any single league. For example, having two NFL games on Christmas Day, featuring exciting matchups like the Chiefs versus the Steelers and the Ravens versus the Texans, generates significant enthusiasm around our service, all within one day of football. This approach aligns with how we structured our WWE deal, which has favorable financial terms that we can manage and scale over time, potentially extending our investment for up to 20 years. It's important to note that there's not necessarily a fundamental conflict between sports and net profit. The challenge arises primarily when dealing with full seasons of major league sports. However, with the event-based model we are developing, we see great opportunities without the risks you mentioned. Additionally, we are passionate about the profitable storytelling aspect of sports; for instance, if you're eager for the Christmas Day football games, you can start watching "Receiver," which premiered on July 10th on Netflix, as part of our narrative-driven sports offerings.

Thank you. Thank you, Ted. Our next question comes from Kannan Venkateshwar of Barclays. It's a question regarding our engagement. So Ted, could you speak to the underlying engagement health at Netflix and what are you seeing there?

Yes, I mentioned this in the last call as well, but competition for entertainment is extremely fierce, and we strive to capture every second of viewing time. In addition to the ongoing competitive pressure, we expected some challenges in our engagement due to paid sharing. Essentially, we are losing viewers who were consuming Netflix content without paying for the service, leading us to believe our engagement would decrease. We conducted a thorough analysis to assess the impact of this and focused on owner households, or those who were not affected by paid sharing at all. What we discovered last quarter was that engagement remained stable, indicating that much of the decline in engagement was linked to this issue. Now looking ahead to the next quarter, I don't plan to treat this as a new metric every quarter, but when we evaluate that same group again, we see that their engagement is not just stable but has increased year-over-year. We are very encouraged by this, as it signifies healthy engagement growth. Despite facing these challenges and competition, we still account for about 10% of television time in every country where we operate. There is still plenty of opportunity for growth, and while we are pleased with our engagement, we are not entirely satisfied.

Thank you, Ted. Our next question comes from Ben Swinburne of Morgan Stanley. Your primary competitor for more passive home entertainment engagement increasingly looks to be YouTube. What are you doing in terms of programming and product to try and take share from YouTube in the future? Or is this not a focus? Are there key verticals like kids programming where you see YouTube as particularly advantaged? Perhaps Ted, you and Greg can tag team on this one.

Yes, looking at the recent Nielsen data for June, Netflix and YouTube are the clear leaders in direct-to-consumer entertainment. Together, our services account for about 50% of all streaming to TVs in the U.S., where we have data available. Our goal is to target the additional 80% of total TV time that isn't being spent on either service. This represents a significant opportunity, especially as streaming continues to grow, which it did in June, increasing its share compared to linear TV. With linear TV's decline, we believe there's ample room for growth as long as we maintain our strong execution. We do compete with YouTube in certain segments and vie for viewer attention, but our services complement each other well. Our shows are among the most-watched, highly discussed, and award-nominated. Just recently, we received 107 Emmy nominations for our slate this year. Additionally, our teasers, trailers, and behind-the-scenes footage are very popular on YouTube, creating a symbiotic relationship between us. Greg, do you have anything to add?

Sure. It's important to highlight that Netflix addresses a unique need for consumers seeking exceptional movies and TV shows, while also meeting the requirements of creators in search of partners willing to share the risks associated with bringing their stories to fruition. Consider popular shows like Stranger Things, Wednesday, Heartstopper, and Outer Banks; these series attract significant viewership and fan interest, particularly among younger audiences, spanning multiple generations. It's difficult to envision such large-scale creative investments occurring within YouTube's framework. As Ted mentioned, the competition is fierce out there, but we are confident in the effectiveness of our model. It not only benefits our consumers and creators but also contributes positively to our business, allowing us to achieve substantial operating margins.

Thank you, Ted and Greg. Our next question comes from Maria Ripps of Canaccord. Netflix's CTO, Elizabeth Stone, recently appeared on a podcast where she said that Netflix is exploring how to integrate generative AI into the platform to improve the member experience. Do you think that technology could have more of a potential impact on the content creation or discovery side? How do you think about the relative impact on engagement from improving discovery versus content? Greg, over to you for this one.

Yes, we've been using similar technologies, AI and ML for many years to improve the discovery experience and drive more engagement through those improvements. We think the generative AI has tremendous potential to improve our recommendations and discovery systems even further. We want to make it even easier for people to find an amazing story that's just perfect for them in that moment. But I think it's also worth noting that the key to our success stacks, right, it's quality at all levels. So it's great movies, it's great TV shows, it's great games, it's great live events and a great and constantly improving recommendation system that helps unlock all of that value for all of those stories. Ted, you want…

It raises questions about the future impact of AI on creativity, which is difficult to forecast. However, I believe that AI will provide a valuable set of tools for creators, enhancing their ability to tell compelling stories. History shows us that technological advancements in entertainment often lead to significant business growth. For instance, in animation, rather than becoming cheaper, the quality improved significantly when it transitioned from hand-drawn to CG animation, resulting in a larger workforce in the field today. I believe enhancing content by just 10% is a better business approach than reducing costs by 50%. Ultimately, shows and movies resonate with audiences when there is a strong connection, which is fostered through excellent writing, actor chemistry, and engaging plots. While audiences might notice various factors, their primary concern is how well they connect with the storytelling, likely leaving budget and technology concerns aside. Therefore, our focus must be on storytelling quality. Many filmmakers and producers are currently exploring AI and are excited about its potential as a tool. We need to observe its development before making any concrete predictions about its future implications. Our commitment remains the same: to tell outstanding stories.

Thank you, Ted and Greg. We now have a question from Ben Swinburne regarding our product. And the question for Greg is, can you dimensionalize the opportunity from a new homepage? You said that this is the biggest update in a decade, which sounds meaningful. What are the primary areas of improvement you're targeting with this?

It’s difficult to determine the exact benefits that the new homepage will provide at this time. What’s important to highlight is that this is less about the immediate improvements we’ll be making and more about establishing a framework that enables us to grow and enhance our offerings more freely than we can under the current setup. Regarding the challenges we aim to address, a significant part of this is about increasing the diversity of entertainment we offer. While we have excelled at delivering films and series for quite a while, we are now increasingly integrating live events into our portfolio, such as the recent Brady roast, which was extraordinary, but it’s a unique event that we need to generate demand for. We're also focused on consistent live events like WWE, ensuring that fans can easily access those experiences. Additionally, we are promoting more games through our service. We’ve realized the need to create structures that allow us to move flexibly between different types of content and entertainment in terms of how we promote and connect them. For instance, we want to recognize that even within the same content type, we perform different roles for our users at various times. This could mean curating an optimal experience for a family movie on a Sunday afternoon compared to just wanting to jump back into a series on a Thursday night. Our aim is to provide this kind of adaptability. We expect that this new framework will enable us to achieve the same level of repeated value for users in terms of engagement, leading to retention and ultimately revenue, similar to what the old structure accomplished over the past decade. However, we understand that this will be a lengthy, iterative process, and our immediate focus is on taking that first step to set ourselves up for success.

And less technical too, Greg, the user interface is beautiful.

There we go. We like beauty as well…

Thank you. Next question is from Jason Helfstein of Oppenheimer. What have been the early results from phasing out the basic tier in a handful of your markets? And how does that tie back to success in selling ads? Greg, would you want to take that one?

Sure. As you've seen us do multiple times before, we spent a lot of energy on the right product experience for doing this migration. And then what we do is we roll it out and we test it and we see how that goes and I let our members tell us if we did a good job there or not, we make whatever changes in iterations before we then scale it out and roll it even further. And I think it's worth noting here that we feel like in this migration, we've got a very strong offering for our members. Essentially, we're providing them a better experience, two streams versus one. We've got higher definition, we've got downloads. And, of course, all at a lower price, $6.99 in the United States. We think that represents a tremendous entertainment value and it includes ads. And for members who don't want that ads experience, they, of course, can choose our ads free standard or premium plans as well. And then in terms of performance, I'll just let our actions speak for ourselves. When those things go well, we typically roll it out and we've had the confidence to move forward with that change in the U.S. and France. So that's an indicator of how it's going.

Thank you, Greg. Next question comes from Eric Sheridan from Goldman Sachs. The question is regarding gaming. Can you provide any update on your gaming initiative and user engagement and your ability to scale your gaming efforts?

Sure. The gaming market is substantial, totaling nearly $150 billion outside of China and Russia, not including ad revenue, in which we are not currently involved. We are nearing three years into our gaming initiative and are pleased with our progress. We set ambitious targets for engagement growth and have often exceeded them. In 2023, we tripled our engagement numbers, and we are optimistic about our growth in 2024, with even more ambitious goals set for 2025 and 2026. However, it's important to note that at our current scale, both engagement and its impact on our overall business remain relatively small. Additionally, our investment in gaming compares modestly to our total content spending, and we've aligned the growth of our investment with its business impact, maintaining a disciplined approach to scaling. Our objective now is to continue increasing engagement to achieve a more significant business impact. We have a proven trajectory in this regard, whether it involves new content genres like unscripted or film, or optimizing our content mix for specific countries like Japan or India, where our teams have done excellent work. We continuously iterate and refine our programming based on feedback from our members. Over the years, we've made substantial progress, launching over 100 games to date, analyzing what works and what doesn’t, and adapting our strategy to focus more on successful elements within the 80-plus games currently in development. A particularly effective strategy has been to connect our members with games based on beloved Netflix IP. We've quickly entered the realm of interactive narrative games, which are easier to develop, placing them in a narrative hub we call Netflix stories. In Q2, we launched titles like Virgin River and Perfect Match, and starting this month, we will introduce about one new title each month into Netflix stories, featuring beloved IP such as Emily in Paris and Selling Sunset, with even more diverse games set to launch in the upcoming quarters and years.

I just want to add a quick point, Greg, if that's alright. I'm genuinely excited about the potential in games, as it's uncommon for a new content area to effectively complement one another. Occasionally, we see things like Squid Game: The Challenge emerging after the scripted series. However, I believe we have a unique opportunity to engage super fans through games, which is really exciting. The concept of providing a platform for fans to engage in between seasons, and even introducing new characters, storylines, or plot twists through the game, is quite innovative. These elements could then appear in the next season or a movie sequel. It's a fantastic and rare opportunity where collaboration can yield significant results. We aim to replicate the success we've had in building fandom through live events and consumer products, and this fits perfectly into that strategy. I'm really looking forward to seeing how this develops.

Thank you, Ted. Thank you, Greg. Our last question comes from Jessica Reif Ehrlich of Bank of America. The question is regarding content spend. Ted, you have targeted $17 billion in cash content spend this year. You're increasing your sports spending within that. How should we think about your spending on entertainment or non-sports entertainment and what's the overall content spending growth going forward?

Thank you for the question. I want to emphasize that creating TV and films for a global audience is a creative process. We are catering to over 600 million viewers worldwide, who engage with us for a few hours each day. Our $17 billion investment includes all the exciting projects we've discussed, and this amount will increase as our revenue grows. While it won't rise as quickly as revenue, it will expand to match it. A significant advantage we have is our distributed creative teams across the globe, which are deeply connected to the local creative ecosystems, celebrity cultures, and the preferences of fans in those regions. These teams can work simultaneously to maintain a consistent flow of major hits. We compete with Hollywood for high-quality programming, but we also create content in places like India, Spain, France, Italy, Germany, Korea, Japan, Southeast Asia, and Latin America. The programs we produce are designed to delight local audiences, and when they succeed, they often reach larger global audiences, including in North America. The EMEA team, especially in the UK, is currently excelling in this area, delivering significant global hits that resonate locally. For example, "Baby Reindeer" and "The Gentleman" received Emmy nominations and have been hugely popular in the US while being a phenomenon in the UK, with over half of all UK members watching them. Our original film "One Day" is similarly well-received. From France, "Under Paris" achieved 90 million views and over 157 million viewing hours worldwide, captivating more than half of the French audience. Similarly, "The Asunta Case" in Spain and "Queen of Tears" in Korea have garnered substantial viewership. This strategy of targeting local audiences while creating global content is becoming increasingly efficient as we strengthen our capabilities. Looking ahead, our upcoming slate is impressive. This year, we are set to bring back "Squid Game," "Emily in Paris," "Selling Sunset," "Lincoln Lawyer," "The Diplomat," "Virgin River," and "Love is Blind." Ryan Murphy's new season of "Monsters," focused on the Erik and Lyle Menendez story, is also on the way. In 2025, we will see new seasons of "Wednesday," "Stranger Things," and "Night Agent," along with the production of "One Piece." This week, we launched the finale of "Cobra Kai," which promises to be spectacular. On August 8th, we will see the finale of "Umbrella Academy," alongside a new series, "Perfect Couple," featuring Nicole Kidman, and other exciting titles like "Nobody Wants This" with Kristen Bell, "Black Doves" from the UK, "Beauty in Black" from Tyler Perry, and "A Classic Spy" with Ted Danson. From Brazil, we will showcase "Senna," and from Colombia, "Hundred Years of Solitude." We are also focusing on various live events. Our movie lineup is fantastic with titles like "Rebel Ridge," "Will & Harper," "The 688," "The Piano Lesson," and "Carry-On." We are committed to maximizing our next billion dollars in programming better than anyone else, and there's no one better equipped to do this than Netflix. We are very excited.

Spencer, how do you not get excited about that and then also get excited about that we're going to do all that while growing content spend slower than revenue. That's a lot of stuff going on. Thanks, Ted.

It's all in. It's all in there.

And a hot dog contest too, Spencer, don't forget that.

All right. Well, I'm going to leave it at that since it sounds like we're going to have a lot to watch. So we all need a little bit more time. So we'll end the Q2 call here. So thank you, Ted, Greg and Spence for joining us today. Thank you, investors and analysts for dialing into our call and we look forward to chatting with you next quarter. Thank you very much.