WEBVTT - Instant Reaction: Netflix Logs Record Profit, But Withholds User Data

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>This is a breaking news update from Bloomberg.

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<v Speaker 3>Instant reaction and analysis from our three thousand journalists and

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<v Speaker 3>analysts around the world. Okay, Netflix shares finally bouncing around

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<v Speaker 3>a little bit, up about two percent in the after hours.

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<v Speaker 3>The company did just report first quarter profit that exceeded estimates.

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<v Speaker 3>It was boosted by a recent price increase, a strong

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<v Speaker 3>slate of programming across the globe, like the UK hit

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<v Speaker 3>series Adolescents. I want to bring Lucas Shaw in right now.

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<v Speaker 3>He's been all over this story, and he's all over

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<v Speaker 3>this company and has been for years.

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<v Speaker 2>Lucas.

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<v Speaker 3>This report is unique because it's the first time they

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<v Speaker 3>haven't reported subscriber data. We knew this was coming. Everybody

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<v Speaker 3>knew this was coming. It is there a way to

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<v Speaker 3>back into that number or our investors just ignoring that now?

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<v Speaker 1>Well, I think you can try to figure it out,

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<v Speaker 1>at least in the first couple quarters by by looking

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<v Speaker 1>at revenue and modeling out how many people that they

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<v Speaker 1>added and factor in the price increases. But look, a

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<v Speaker 1>lot of other companies get measured based on sales and profit.

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<v Speaker 1>There's no read the Netflix can't it's a little less

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<v Speaker 1>fun for me. I think it's a little less fun

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<v Speaker 1>for all of us. We'd appreciate the added transparency, but

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<v Speaker 1>for the you know, they made sure that in the

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<v Speaker 1>first quarter of not doing that, they met or beat

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<v Speaker 1>on pretty much every metric.

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<v Speaker 4>What for you, Lucas also stands out? I mean we

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<v Speaker 4>were just talking about too, you know, and that it

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<v Speaker 4>has been an outperformer. We've seen some movements up certainly

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<v Speaker 4>this week. But what for in this release? There's a

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<v Speaker 4>lot there that really stood out for you? Is it

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<v Speaker 4>some of the content that they're offering. We talked a

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<v Speaker 4>little bit about live content and sports with our TV colleagues,

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<v Speaker 4>but I'm just curious for you what's significant here.

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<v Speaker 1>I was a little confused. You know, they issue this

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<v Speaker 1>letter to shareholders every quarter, and they had this long

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<v Speaker 1>section that was titled competition that didn't really talk about

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<v Speaker 1>competition that much. They spent a lot of time talking

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<v Speaker 1>about how much they're investing in production overseas, and then

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<v Speaker 1>they had a chart from the UK showing their growth

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<v Speaker 1>there and how they're only behind BBC and ITV and

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<v Speaker 1>I think important to Netflix on television screens, they're ahead

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<v Speaker 1>of YouTube because Netflix really doesn't like that. In the US,

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<v Speaker 1>YouTube can now say that more people watch it than Netflix.

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<v Speaker 1>So I sort of read that as like a long

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<v Speaker 1>effort to show ways in which it's both ahead of

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<v Speaker 1>all of it sort of traditional Hollywood competitors, and in

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<v Speaker 1>some of these foreign markets on televisions it's still ahead

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<v Speaker 1>of YouTube. I think that's where Netflix feels the most

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<v Speaker 1>competitive pressure at the moment.

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<v Speaker 3>Does it still feel like it can? I mean, Lucas,

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<v Speaker 3>this is a company that you know, years ago would

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<v Speaker 3>say it's competing with anything that anyone is doing looking

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<v Speaker 3>at a screen, you know, whether that's gaming, whether that's

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<v Speaker 3>watching traditional linear TV, whether it's looking at TikTok for example.

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<v Speaker 3>I think there was a year they called out TikTok

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<v Speaker 3>specifically or quarter they did that. Do they still think

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<v Speaker 3>about all those are Do they still think about competition

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<v Speaker 3>that way?

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<v Speaker 1>Yeah, the company still thinks of anything that is leisure

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<v Speaker 1>time as competition.

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<v Speaker 2>How much it talks about.

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<v Speaker 1>Some of those other behaviors I think depends on the quarter.

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<v Speaker 1>Right Like right now, they may be more focused on

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<v Speaker 1>your traditional video entertainment programming. There's some quarters I feel

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<v Speaker 1>like they oftentimes do that when they have.

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<v Speaker 2>Like a really killer quarter because they.

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<v Speaker 1>Don't really need to spend any time on their immediate

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<v Speaker 1>competition because everyone can see that it's going very well.

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<v Speaker 1>And so then they talk sort of loftily about like

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<v Speaker 1>Fortnite or TikTok or sleep or any of these other topics.

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<v Speaker 4>How does it feel to not get the subscriber numbers?

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<v Speaker 4>Subscription numbers?

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<v Speaker 2>I mean, I don't like it.

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<v Speaker 1>Who would we all like using data to evaluate a company.

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<v Speaker 1>It was always the easiest way to know if things

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<v Speaker 1>were going well or not. And it feels a little

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<v Speaker 1>even though they would push back on this, it does

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<v Speaker 1>feel a little bit like they're trying to hide it

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<v Speaker 1>because they know that their subscriber growth is going to

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<v Speaker 1>be good, but not as good as it used to be,

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<v Speaker 1>and so it allows them, you know, they can only

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<v Speaker 1>do so much to adjust the subscriber numbers, but increasing

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<v Speaker 1>and decreasing subscribers is now just one of a few

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<v Speaker 1>levers they have, right because they're going to raise prices,

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<v Speaker 1>they're going to have advertising, they're going to do a

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<v Speaker 1>lot of different things that allows them to kind of

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<v Speaker 1>shift people from a metric that is maybe a little

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<v Speaker 1>harder to control to one that's a little easier for them, Lucas.

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<v Speaker 3>As we were preparing for these results, we saw this

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<v Speaker 3>narrative emerge that this is, you know, a tech company

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<v Speaker 3>that could be at least a little shielded from the

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<v Speaker 3>chaos that we're seeing when it comes to tariffs and

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<v Speaker 3>when it comes to trade, because well, look at what

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<v Speaker 3>they're dealing in. But at the same time, it is

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<v Speaker 3>a discretionary expense for consumers.

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<v Speaker 2>So I'm wondering.

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<v Speaker 3>How you view that and whether or not if we

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<v Speaker 3>do see maybe some sort of downturn as a result

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<v Speaker 3>of higher prices from tariffs from trade, that could actually

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<v Speaker 3>be a risk to the company.

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<v Speaker 1>Yeah, I think consensus is that they're to your point,

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<v Speaker 1>they're more insulated both because look that, yeah, they don't

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<v Speaker 1>deal in any hard goods, so there's the tariffs don't

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<v Speaker 1>have a direct impact unless you start to see other countries,

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<v Speaker 1>you know, impose price increases on services, which is possible

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<v Speaker 1>but not something that we've seen yet. You know, they're

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<v Speaker 1>a little bit impacted in the cost of making things

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<v Speaker 1>because of just pariffs will impact factors that go into production,

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<v Speaker 1>But in terms of discretionary income, look, they keep raising prices,

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<v Speaker 1>maybe some people will decide Netflix just isn't worth it.

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<v Speaker 1>Netflix has the best churn, which is sort of the

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<v Speaker 1>cancelation rate in the streaming business. It's way ahead of

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<v Speaker 1>everyone else, and so you have to think that when

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<v Speaker 1>people are looking at what they're going to cancel, it

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<v Speaker 1>will not be at the top of that list. It

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<v Speaker 1>will probably be close to or at the bottom of

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<v Speaker 1>that list. So again, I think they're in better position

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<v Speaker 1>than most. But look, they're big enough that even a

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<v Speaker 1>slight increase in churn is a headache for them, So

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<v Speaker 1>they're not immune. I just think it depends on, you know,

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<v Speaker 1>if we go from a trade war into a full

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<v Speaker 1>on recession or if we just have like this period

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<v Speaker 1>of uncertainty. I think just uncertainty is fine for Netflix.

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<v Speaker 1>You know, recession's not good for anyone.

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<v Speaker 4>Hey, one last quick question for you, Lucas on the

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<v Speaker 4>analys call, what is the question that must be asked?

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<v Speaker 2>Good question?

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<v Speaker 1>I mean, I expect they'll get a bunch of normal

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<v Speaker 1>questions about sports and advertising. I guess I'm probably most

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<v Speaker 1>curious about advertising. They keep talking about how they're close

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<v Speaker 1>to this being a material part of their business. They're

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<v Speaker 1>teasing it out a little bit more in their shareholder letter,

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<v Speaker 1>but we don't. We haven't really had a material any

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<v Speaker 1>material numbers on that business other than like these sort

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<v Speaker 1>of vague monthly active user figures. So I'd love for

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<v Speaker 1>them to go into more detail. I don't expect that

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<v Speaker 1>they will.

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<v Speaker 4>All right, great stuff, Hey, thank you so much, have

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<v Speaker 4>a great weekend. Bloomberg News entertainment reporter Lucas Shaw with

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<v Speaker 4>a breakdown on Netflix. Just want to drive everybody's attention

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<v Speaker 4>because I'm looking at it in the aftermarket and we're

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<v Speaker 4>now seeing the stock up about three point six percent here.

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<v Speaker 4>Let me just pull it up once again on my

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<v Speaker 4>Bloomberg yet almost three point eight percent as we speak.

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<v Speaker 4>Netflix reported first quot a profit that exceeded Wall Street forecasts,

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<v Speaker 4>boosted by a recent price increase and a strong slate

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<v Speaker 4>of programming across the globe like the hit UK series Adolescence.

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<v Speaker 4>Keep in mind, this is the first time that the

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<v Speaker 4>company has reported financial results without disclosing how many customers

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<v Speaker 4>it added are lost, something we talked about with Lucashaw,

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<v Speaker 4>which has been such a crucial yardstick excuse me to

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<v Speaker 4>gauge the company's performance. But again, the stock up about

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<v Speaker 4>three point nine percent.

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<v Speaker 3>Hey, I want to bring in Mark Douglass right now.

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<v Speaker 3>He's president and CEO of Mountain. It's the company that

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<v Speaker 3>has software that helps companies target advertising when it comes

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<v Speaker 3>to smart TVs. He joins us here in the Bloomberg

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<v Speaker 3>Interactive Brokers studio. I want to pick up exactly where

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<v Speaker 3>Lucas left off, and that's advertising. We don't know a

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<v Speaker 3>lot about how much revenue is actually coming from advertising.

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<v Speaker 3>They don't have a specific place for it in the

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<v Speaker 3>shareholder letter today. How much do you think they're getting.

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<v Speaker 5>I think it's still pretty small for them. What's really

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<v Speaker 5>important is half of all new subscribers they reported previously

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<v Speaker 5>in previous quarters are buying the ad supported tier.

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<v Speaker 2>What does that tell you?

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<v Speaker 5>So, it tells me they have a growing backlog of

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<v Speaker 5>revenue that's going to occur in the future because essentially

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<v Speaker 5>every person that gets the ad supported tier is currently undermonetized.

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<v Speaker 5>But despite that, they have record breaking earnings. So imagine

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<v Speaker 5>what the earnings are going to be when they are

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<v Speaker 5>fully monetized, which would effectively double the revenue per customer

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<v Speaker 5>for their new customer.

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<v Speaker 3>You must have spent time with the advertising tier of Netflix,

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<v Speaker 3>just be given your business.

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<v Speaker 5>Yeah, well some I know a lot of the key people.

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<v Speaker 2>But no.

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<v Speaker 3>But I mean like the experience because I think a

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<v Speaker 3>lot of people who have been using Netflix for years

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<v Speaker 3>we don't have the advertising plan.

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<v Speaker 5>So I don't.

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<v Speaker 3>But if you're watching, like if you're watching something on YouTube,

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<v Speaker 3>for example, and an AD is just thrown in there,

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<v Speaker 3>it can be pretty eruptive. Yeah, what's the experience on Netflix.

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<v Speaker 5>It's it's like watching any other streaming service ad supported

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<v Speaker 5>streaming service. There are pods of ads. There's just a

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<v Speaker 5>lot fewer ads right now.

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<v Speaker 2>How well is it targeted?

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<v Speaker 5>They I don't think it's very targeted. I think Netflix

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<v Speaker 5>probably an issue right it is. It's because Netflix is

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<v Speaker 5>kind of starting from the big brand advertiser perspective and

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<v Speaker 5>to really fully monetize that that there, you know, they

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<v Speaker 5>have to take market share away from the entire rest

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<v Speaker 5>of the industry because those big brand advertisers, they're not

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<v Speaker 5>increasing their spend. So so I think that's part of

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<v Speaker 5>the challenge they have in monizing monetizing the ads. But

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<v Speaker 5>they will get there, and when that kicks in, it's

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<v Speaker 5>going to be the same way password cracking down on

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<v Speaker 5>password sharing.

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<v Speaker 3>You know, I just want to My experience with advertising

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<v Speaker 3>was in one of these I don't know, like a

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<v Speaker 3>similar service was when Amazon decided to kind of get

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<v Speaker 3>rid of the free yeah Prime video. And I'll tell

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<v Speaker 3>you like, I was like watching something Carol and just

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<v Speaker 3>cut out for an ad at a terrible time.

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<v Speaker 1>Right.

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<v Speaker 3>It was thrown in a really sloppy way. It's only

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<v Speaker 3>I think three dollars more a month to pay for it,

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<v Speaker 3>and I was like, I'm done.

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<v Speaker 2>That's it.

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<v Speaker 3>No more from like a you know, I don't know

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<v Speaker 3>what's wrong with me, but I'm like, I'm not even

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<v Speaker 3>going to partake in this.

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<v Speaker 2>I've done with it.

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<v Speaker 4>It's amazing how we as consumers of video and content

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<v Speaker 4>right where we used to be we didn't have a choice,

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<v Speaker 4>you know, in linear television where you had to stop,

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<v Speaker 4>you know, or you had a commercial and you ran

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<v Speaker 4>the bathroom or something and like, but.

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<v Speaker 3>Now it's program okay, I'm just before and we love you,

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<v Speaker 3>we love you, okay.

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<v Speaker 5>All right?

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<v Speaker 4>So then how much I mean we were talking about

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<v Speaker 4>how Netflix has been a bit of an app performer

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<v Speaker 4>this year. It's more than nine percent here, So when

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<v Speaker 4>do we start to see those numbers and that enthusiasm

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<v Speaker 4>that you're talking about as a result kind of start

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<v Speaker 4>to show up. Well, I think, and is the stock

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<v Speaker 4>underpriced because of it?

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<v Speaker 5>I think Netflix. I think Netflix is somewhat immune because

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<v Speaker 5>think of it this way. The first thing you get

0:10:57.840 --> 0:11:01.480
<v Speaker 5>is the last thing you cancel, and Netflix for streaming

0:11:01.840 --> 0:11:04.559
<v Speaker 5>is definitely the first thing you get. It's the first thing.

0:11:04.760 --> 0:11:07.120
<v Speaker 5>There's data that shows it's you know, you turn on

0:11:07.160 --> 0:11:09.560
<v Speaker 5>the TV. The first thing you hit is let me

0:11:09.600 --> 0:11:13.120
<v Speaker 5>go see what's on Netflix. And remember the highest price

0:11:13.320 --> 0:11:17.319
<v Speaker 5>offering the highest priced subscription, Yeah, costs sixty eight percent

0:11:17.480 --> 0:11:20.200
<v Speaker 5>more than their lowest price, so you can just like

0:11:20.360 --> 0:11:22.560
<v Speaker 5>kind of go, you want to save some money, you

0:11:22.679 --> 0:11:25.800
<v Speaker 5>just downgrade the subscription. You don't need to cancel it.

0:11:26.080 --> 0:11:27.839
<v Speaker 2>So I think for them to get to the.

0:11:27.760 --> 0:11:31.880
<v Speaker 5>Point where people are canceling like it, it's nearly impossible.

0:11:31.960 --> 0:11:35.360
<v Speaker 4>You can't put food on the I'm all getting Hopefully

0:11:35.360 --> 0:11:36.120
<v Speaker 4>nobody has to do that.

0:11:36.240 --> 0:11:40.280
<v Speaker 3>Just sorry, the squid game on the table exactly.

0:11:41.640 --> 0:11:41.920
<v Speaker 2>Mark.

0:11:42.559 --> 0:11:47.080
<v Speaker 3>When it comes to the landscape out there, Yeah, okay,

0:11:47.120 --> 0:11:49.600
<v Speaker 3>I know first mover advantage is going to be part

0:11:49.600 --> 0:11:52.520
<v Speaker 3>of your answer here. But Netflix stands apart from the

0:11:52.559 --> 0:11:54.720
<v Speaker 3>competitors out there, and part of it is that some

0:11:54.760 --> 0:11:57.160
<v Speaker 3>of them were legacy media companies that were trying to

0:11:57.200 --> 0:12:00.600
<v Speaker 3>adapt to this new world that Netflix helped pioneer. But

0:12:00.640 --> 0:12:03.160
<v Speaker 3>why is Netflix so good at this and everybody else

0:12:03.280 --> 0:12:03.880
<v Speaker 3>is struggling?

0:12:03.960 --> 0:12:06.760
<v Speaker 5>Well, my friends at Disney would properly this.

0:12:07.080 --> 0:12:09.440
<v Speaker 3>I mean you know they would. They disagree that Netflix

0:12:09.480 --> 0:12:11.679
<v Speaker 3>does it better? Well, I think Netflix, do you think

0:12:11.720 --> 0:12:13.560
<v Speaker 3>they would? It's the thing is they might say we

0:12:13.640 --> 0:12:14.840
<v Speaker 3>have blue and Netflix doesn't.

0:12:14.880 --> 0:12:15.400
<v Speaker 2>But that's it.

0:12:15.520 --> 0:12:17.880
<v Speaker 5>Yeah, what what well they have? They have a lot

0:12:17.960 --> 0:12:21.000
<v Speaker 5>more sports. But I agree with what you're saying, which

0:12:21.040 --> 0:12:25.000
<v Speaker 5>is when you turn on the TV, Netflix is generally

0:12:25.000 --> 0:12:28.000
<v Speaker 5>the first thing you're going to check. And and that's

0:12:28.040 --> 0:12:31.920
<v Speaker 5>just an insane advantage because it allows you to turn

0:12:32.080 --> 0:12:36.240
<v Speaker 5>shows that maybe people wouldn't have watched, like WWE, and

0:12:36.280 --> 0:12:39.200
<v Speaker 5>turn them in the top ten hits on Netflix just

0:12:39.240 --> 0:12:42.480
<v Speaker 5>because you know, you you sit down on the couch,

0:12:42.559 --> 0:12:45.520
<v Speaker 5>turn on the TV. WWE is on and it's live,

0:12:45.559 --> 0:12:48.079
<v Speaker 5>why you know what, and it's there for you to watch.

0:12:48.320 --> 0:12:51.840
<v Speaker 5>It gives us this incredible power to turn average content

0:12:52.280 --> 0:12:55.680
<v Speaker 5>into really big hits, and to turn great content into

0:12:55.960 --> 0:12:59.559
<v Speaker 5>like like NFL sport NFL games in the nearly Super

0:12:59.559 --> 0:13:01.600
<v Speaker 5>Bowl on a regular weekend.

0:13:01.600 --> 0:13:03.200
<v Speaker 2>You're more of a UFC person.

0:13:03.320 --> 0:13:07.400
<v Speaker 4>Yeah, totally not. Advertisers, where do they want to put

0:13:07.400 --> 0:13:09.240
<v Speaker 4>their ads in terms of content? Is it the live

0:13:09.280 --> 0:13:09.960
<v Speaker 4>sports stuff?

0:13:10.080 --> 0:13:10.360
<v Speaker 5>Is it?

0:13:10.480 --> 0:13:11.559
<v Speaker 4>What is it? Do they care?

0:13:11.640 --> 0:13:12.800
<v Speaker 2>Are they picky?

0:13:13.200 --> 0:13:16.480
<v Speaker 5>It depends on the advertiser, but generally people lives. You

0:13:16.520 --> 0:13:18.360
<v Speaker 5>can sell live sports all day long.

0:13:19.600 --> 0:13:19.959
<v Speaker 2>From now.

0:13:20.160 --> 0:13:22.520
<v Speaker 5>We're kind of not in that game. We're not dealing

0:13:22.520 --> 0:13:25.280
<v Speaker 5>with brand advertisers. But I know when I talk to

0:13:25.280 --> 0:13:28.200
<v Speaker 5>all the big agencies and things like that, they it's

0:13:28.240 --> 0:13:33.480
<v Speaker 5>all about live sports. They just it's an insatiable appetite streaming.

0:13:33.600 --> 0:13:34.160
<v Speaker 4>They don't care.

0:13:34.280 --> 0:13:38.160
<v Speaker 5>Yeah, streaming live sports. ESPN is now rolling out streaming

0:13:38.240 --> 0:13:42.280
<v Speaker 5>live sports and people are I know from Disney, people

0:13:42.360 --> 0:13:45.320
<v Speaker 5>are just lining up to buy it. And it's every

0:13:45.440 --> 0:13:49.319
<v Speaker 5>streamer is in the process of doing that, and so

0:13:49.840 --> 0:13:53.160
<v Speaker 5>it's always that. After that, I think the appetite changes

0:13:53.280 --> 0:13:56.760
<v Speaker 5>a lot, but there's just something about the engagement live

0:13:56.760 --> 0:13:58.319
<v Speaker 5>sports that advertisers love.

0:13:58.440 --> 0:13:58.680
<v Speaker 2>Yeah.

0:13:58.720 --> 0:14:01.720
<v Speaker 3>The November twenty twenty four Taylor Serrano fight on Netflix

0:14:01.720 --> 0:14:05.880
<v Speaker 3>became the most watched professional women's sports event in history.

0:14:06.280 --> 0:14:08.800
<v Speaker 3>They say that we're well with the upcoming rematch. Were

0:14:08.840 --> 0:14:11.320
<v Speaker 3>poised for another groundbreaking night that will further elevate the

0:14:11.360 --> 0:14:15.320
<v Speaker 3>profile of women athletes. In addition, Netflix is opted into

0:14:15.320 --> 0:14:17.960
<v Speaker 3>a second game for Christmas twenty twenty five, where they'll

0:14:18.000 --> 0:14:20.080
<v Speaker 3>be the home of the NFL for Christmas Day. My

0:14:20.080 --> 0:14:23.600
<v Speaker 3>sister was watching that last year on Christmas Day. They

0:14:23.600 --> 0:14:25.920
<v Speaker 3>say live efforts have primarily focused on the US. We

0:14:25.960 --> 0:14:28.880
<v Speaker 3>expect to extend this strategy to other countries over time.

0:14:29.120 --> 0:14:31.480
<v Speaker 3>How big of an opportunity is that for Netflix given

0:14:31.520 --> 0:14:34.120
<v Speaker 3>what you told me about the ad demand for live sports,

0:14:34.400 --> 0:14:36.680
<v Speaker 3>huge for Netflix if they expand this outside the US.

0:14:36.800 --> 0:14:37.000
<v Speaker 1>Yeah.

0:14:37.000 --> 0:14:38.680
<v Speaker 5>I mean if I was a sportslee, if I was

0:14:38.720 --> 0:14:42.080
<v Speaker 5>Formula one, I would literally just live in front of

0:14:43.080 --> 0:14:46.040
<v Speaker 5>Surrended's house, just like, let's do a deal.

0:14:46.200 --> 0:14:47.440
<v Speaker 2>Why do you think that you haven't done well?

0:14:47.480 --> 0:14:49.800
<v Speaker 5>They already are doing that because Half One's become so

0:14:49.960 --> 0:14:54.480
<v Speaker 5>popular with the foot drive a match. If the gate

0:14:54.560 --> 0:14:56.720
<v Speaker 5>if they just last year, was like.

0:14:57.160 --> 0:14:58.680
<v Speaker 3>So why is it not there now? Do you think

0:14:58.760 --> 0:15:02.160
<v Speaker 3>is it a long term deals that are in place already?

0:15:02.240 --> 0:15:02.440
<v Speaker 2>Yeah?

0:15:02.440 --> 0:15:04.680
<v Speaker 5>I think it's long term deals. I wouldn't be surprised

0:15:04.720 --> 0:15:07.240
<v Speaker 5>if Formula one comes there they go to Europe. Of course,

0:15:07.280 --> 0:15:12.120
<v Speaker 5>football in Europe, I mean the the it's just something there.

0:15:12.280 --> 0:15:13.560
<v Speaker 2>But Netflix is smart.

0:15:13.600 --> 0:15:17.480
<v Speaker 5>They're going to sports that are like like you know,

0:15:17.600 --> 0:15:22.280
<v Speaker 5>female boxing, that wouldn't necessarily be something that would attract

0:15:22.320 --> 0:15:25.200
<v Speaker 5>the huge audience and get the highest rates, and they're

0:15:25.240 --> 0:15:29.000
<v Speaker 5>turning it into the most watched female sports event in history.

0:15:29.080 --> 0:15:32.200
<v Speaker 5>And this is the superpower that they have. It's the

0:15:32.280 --> 0:15:35.520
<v Speaker 5>advantage that they just have over every other streaming network

0:15:35.720 --> 0:15:37.760
<v Speaker 5>by being the first thing you click when you turn

0:15:37.800 --> 0:15:38.320
<v Speaker 5>on your TV.

0:15:38.480 --> 0:15:40.800
<v Speaker 4>I just want to mention we are talking with Mark Douglass,

0:15:40.840 --> 0:15:43.960
<v Speaker 4>President and CEO of Mountain Shares of Netflix. They're up

0:15:43.960 --> 0:15:46.480
<v Speaker 4>about four point six percent. This is the company logs

0:15:46.520 --> 0:15:49.800
<v Speaker 4>record profit in the quarter, revenue tracking above the midpoint

0:15:49.800 --> 0:15:52.320
<v Speaker 4>of its twenty twenty five forecast range, and it does

0:15:52.360 --> 0:15:55.600
<v Speaker 4>see second quarter revenue. So the current quarter that we're

0:15:55.600 --> 0:15:58.960
<v Speaker 4>in eleven point zero four billion, the estimate is ten

0:15:59.040 --> 0:16:03.800
<v Speaker 4>point eighty eight bill. And when it comes to advertisers,

0:16:04.520 --> 0:16:07.400
<v Speaker 4>does everybody else want to just be Netflix? Especially when

0:16:07.400 --> 0:16:09.400
<v Speaker 4>it comes to streaming? What do you hear from advertisers?

0:16:09.480 --> 0:16:11.120
<v Speaker 4>Is there first choice always Netflix?

0:16:11.480 --> 0:16:14.920
<v Speaker 5>Not for I think people are very intrigued by advertising

0:16:14.960 --> 0:16:17.120
<v Speaker 5>on Netflix, but at the end of the day, they

0:16:17.280 --> 0:16:20.920
<v Speaker 5>want the consumer wherever they are. And so Netflix started

0:16:20.920 --> 0:16:23.760
<v Speaker 5>their ads here with very very high pricing and they've

0:16:23.760 --> 0:16:26.760
<v Speaker 5>had to kind of come back down the reality and

0:16:27.320 --> 0:16:30.600
<v Speaker 5>read tools. So I don't think advertisers like Netflix are nothing.

0:16:31.520 --> 0:16:34.240
<v Speaker 5>But Netflix has the most viewers, so they potentially have

0:16:34.360 --> 0:16:35.920
<v Speaker 5>the most ad space over time.

0:16:36.080 --> 0:16:37.960
<v Speaker 4>One last quick question. We know you're going to join

0:16:37.960 --> 0:16:40.320
<v Speaker 4>our TV colleagues in just a moment, but a federal

0:16:40.360 --> 0:16:44.520
<v Speaker 4>judge rule that Google illegally monopolized online ad technology markets

0:16:44.520 --> 0:16:48.120
<v Speaker 4>for advertising exchanges and tools used by websites to sell

0:16:48.160 --> 0:16:52.440
<v Speaker 4>ad space. So they say they, you know, we're doing

0:16:53.000 --> 0:16:57.320
<v Speaker 4>anti competitive acts to acquire maintainment opoly power in these markets.

0:16:57.360 --> 0:17:00.840
<v Speaker 4>So what does that possibly mean at this stamp don't.

0:17:01.080 --> 0:17:05.320
<v Speaker 5>I don't think Google is losing any sleep really that ruling.

0:17:05.400 --> 0:17:08.600
<v Speaker 5>If anything, it's their dream scenario. It's the small it's

0:17:08.640 --> 0:17:12.000
<v Speaker 5>a small part of their business. But the you know,

0:17:12.160 --> 0:17:14.359
<v Speaker 5>US federal government has been very focused on it from

0:17:14.400 --> 0:17:16.560
<v Speaker 5>an anti trust and in fact they're probably you know,

0:17:16.720 --> 0:17:20.200
<v Speaker 5>it's like, yeah, focus it's focused on that, don't focus

0:17:20.280 --> 0:17:23.560
<v Speaker 5>on search and AI, and so to me, it's it's

0:17:23.600 --> 0:17:26.960
<v Speaker 5>almost a dream scenario. For the best dream is that

0:17:27.000 --> 0:17:29.280
<v Speaker 5>they're left alone. But if they have to, you know,

0:17:29.400 --> 0:17:33.080
<v Speaker 5>kind of kind of focus on that and even potentially

0:17:33.080 --> 0:17:36.200
<v Speaker 5>give up that great scenario for them. I don't think

0:17:36.280 --> 0:17:39.160
<v Speaker 5>any investor should be worried about Google losing that part

0:17:39.160 --> 0:17:39.959
<v Speaker 5>of their at business.

0:17:40.080 --> 0:17:43.800
<v Speaker 4>All right, kind of interesting different perspective, and we will

0:17:43.800 --> 0:17:45.720
<v Speaker 4>say that Alphabet Chaos were down about one point four

0:17:45.760 --> 0:17:47.760
<v Speaker 4>percent today, a little bit of a swing. Mark, Thank

0:17:47.760 --> 0:17:50.760
<v Speaker 4>you so much, Mark Douglass. He's president CEO Mountain, the

0:17:50.760 --> 0:17:54.280
<v Speaker 4>company of software that helps companies target advertising a smart TV.

0:17:54.440 --> 0:17:55.880
<v Speaker 4>So good to get his perspective.

0:17:55.880 --> 0:18:01.520
<v Speaker 3>Mark, thank you