1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,160 --> 00:00:13,800 Speaker 2: This is a breaking news updated from Bloomberg instant reaction 3 00:00:14,080 --> 00:00:17,919 Speaker 2: and analysis from our three thousand journalists and analysts around 4 00:00:17,960 --> 00:00:21,600 Speaker 2: the world. Shares of Netflix down to the company forecast 5 00:00:21,640 --> 00:00:24,159 Speaker 2: revenue full for the full year. The guidance met the 6 00:00:24,200 --> 00:00:28,280 Speaker 2: average analyst estimate, but operating margin of twenty eight percent 7 00:00:28,320 --> 00:00:30,840 Speaker 2: came in below Netflix's guidance of thirty one and a 8 00:00:30,880 --> 00:00:33,879 Speaker 2: half percent. That was due, the company says, to an 9 00:00:33,920 --> 00:00:37,640 Speaker 2: expense related to an ongoing dispute with Brazilian tax authorities 10 00:00:37,640 --> 00:00:40,640 Speaker 2: that was not in our forecast. Is that what has 11 00:00:40,680 --> 00:00:41,880 Speaker 2: investors not so happy? 12 00:00:41,960 --> 00:00:44,040 Speaker 1: I don't know. It feels like a one off, but 13 00:00:44,200 --> 00:00:44,640 Speaker 1: I don't know. 14 00:00:44,840 --> 00:00:46,879 Speaker 2: They say it's a one off. The company says that, 15 00:00:47,040 --> 00:00:49,519 Speaker 2: you know, we don't expect. What do they say in 16 00:00:49,640 --> 00:00:52,320 Speaker 2: the press release? They say, we do not expect this 17 00:00:52,360 --> 00:00:54,400 Speaker 2: matter to have a material impact on future results. 18 00:00:54,560 --> 00:00:56,440 Speaker 1: Yeah, all right, got it. But investors are sending this 19 00:00:56,480 --> 00:00:58,480 Speaker 1: stock down about six percent. Keep in mind, this stock 20 00:00:58,560 --> 00:01:00,480 Speaker 1: has had quite a run this year's we met up 21 00:01:00,520 --> 00:01:04,760 Speaker 1: almost forty percent here in twenty twenty five, so investors 22 00:01:04,760 --> 00:01:05,880 Speaker 1: maybe expect a lot out of it. 23 00:01:06,080 --> 00:01:08,960 Speaker 2: Let's bring in Felix Jillette. He is the man who 24 00:01:08,959 --> 00:01:11,800 Speaker 2: knows about media. He's Bloomberg News Media Entertainment Editor. He's 25 00:01:11,800 --> 00:01:14,720 Speaker 2: also the author of It's Not TV, The Spectacular Rise, 26 00:01:14,840 --> 00:01:17,520 Speaker 2: Revolution in Future of HBO, which, yes, we're going to 27 00:01:17,520 --> 00:01:19,360 Speaker 2: be talking about HBO in a just a minute. He 28 00:01:19,400 --> 00:01:22,560 Speaker 2: does join us here in the Bloomberg Interactive Brokers studio 29 00:01:22,959 --> 00:01:23,880 Speaker 2: going through the results. 30 00:01:23,880 --> 00:01:24,080 Speaker 3: Here. 31 00:01:24,400 --> 00:01:26,640 Speaker 2: Look, as Lucas pointed out earlier, this is a five 32 00:01:26,720 --> 00:01:27,759 Speaker 2: hundred million dollar company. 33 00:01:27,800 --> 00:01:29,080 Speaker 3: Expectations are high. 34 00:01:29,240 --> 00:01:32,959 Speaker 2: Yeah, everybody kind of looks to it is the reaction 35 00:01:33,040 --> 00:01:34,600 Speaker 2: that we're seeing because of this one off from the 36 00:01:34,640 --> 00:01:35,880 Speaker 2: Brazilian tax authorities. 37 00:01:36,040 --> 00:01:36,920 Speaker 4: It seems that way. 38 00:01:36,959 --> 00:01:39,840 Speaker 5: Although again it's a crazy time in Hollywood. You know, 39 00:01:40,000 --> 00:01:45,679 Speaker 5: taking a step back, there is competition coming from everywhere, YouTube, Twitch, AI, 40 00:01:45,920 --> 00:01:48,960 Speaker 5: new AI services. But you know, if you take a breath, 41 00:01:49,000 --> 00:01:50,840 Speaker 5: you look at the third quarter slate. They had an 42 00:01:50,880 --> 00:01:54,360 Speaker 5: incredible engagement across the board. You know, they had K 43 00:01:54,400 --> 00:01:57,400 Speaker 5: Pop Demon Hunters, the most popular movie in the history 44 00:01:57,400 --> 00:01:58,440 Speaker 5: of the service three. 45 00:01:58,280 --> 00:02:00,400 Speaker 1: And in twenty five million views. It says in the 46 00:02:00,440 --> 00:02:01,240 Speaker 1: press relief. 47 00:02:01,040 --> 00:02:04,680 Speaker 5: You squid game episodes, jump on there. Now you got 48 00:02:04,720 --> 00:02:07,640 Speaker 5: new Wednesday episodes. The franchise are all doing really well. 49 00:02:07,680 --> 00:02:10,080 Speaker 5: At the same time, all these investments they've made in 50 00:02:10,160 --> 00:02:14,600 Speaker 5: live programming, WWE boxing, you know, all of that is 51 00:02:14,639 --> 00:02:16,320 Speaker 5: starting to really pay off. They're going to have their 52 00:02:16,320 --> 00:02:19,760 Speaker 5: first NFL games coming this Christmas, So, you know, I 53 00:02:19,760 --> 00:02:23,160 Speaker 5: think from a strategic programming platform, you have to say 54 00:02:23,160 --> 00:02:24,560 Speaker 5: that things are going well for Netflix. 55 00:02:24,800 --> 00:02:27,160 Speaker 1: I mean, yeah, I'm looking at I guess they're talking 56 00:02:27,160 --> 00:02:31,120 Speaker 1: about one fight here. Was it the Alvarez and Crawford 57 00:02:31,120 --> 00:02:31,680 Speaker 1: fight or something? 58 00:02:33,040 --> 00:02:34,359 Speaker 3: Cheneral was up all night waiting for that. 59 00:02:34,400 --> 00:02:36,080 Speaker 1: I was totally up all night. I was not up 60 00:02:36,120 --> 00:02:38,760 Speaker 1: all night. But it's said across Netflix's social channels the 61 00:02:38,800 --> 00:02:42,640 Speaker 1: fight generated over at nine hundred and fifty million owned impressions. 62 00:02:42,639 --> 00:02:46,119 Speaker 1: So it's a lot of momentum. Having said that, there's 63 00:02:46,160 --> 00:02:48,520 Speaker 1: lots of competition. I know, when I'm looking around for 64 00:02:48,560 --> 00:02:51,760 Speaker 1: things to stream, sometimes I stop on Netflix. Sometimes I don't. 65 00:02:52,080 --> 00:02:54,440 Speaker 1: I mean, what's what's what is it that it needs 66 00:02:54,440 --> 00:02:57,120 Speaker 1: to kind of keep doing in terms of the momentum? 67 00:02:57,240 --> 00:02:59,480 Speaker 1: Is it Felix all about the spend and making sure 68 00:02:59,520 --> 00:03:02,440 Speaker 1: their IP and their content keeps bringing in the eyeballs. 69 00:03:02,560 --> 00:03:05,600 Speaker 5: Yeah, and making sure that the churn rate stays low 70 00:03:05,720 --> 00:03:08,880 Speaker 5: and that people looking forward think that there's something coming 71 00:03:08,919 --> 00:03:11,040 Speaker 5: down the pipeline that they need to stick around for 72 00:03:11,120 --> 00:03:13,440 Speaker 5: because it's so easy to balance in and out of 73 00:03:13,480 --> 00:03:16,480 Speaker 5: the streaming services. Now, you watch a show that you 74 00:03:16,560 --> 00:03:19,040 Speaker 5: love and then you kind of binge watching the cancel 75 00:03:19,120 --> 00:03:21,480 Speaker 5: that one. I'll pop over to the next one, subscribe 76 00:03:21,520 --> 00:03:24,800 Speaker 5: to that, watch cancel and Yeah, Netflix, I think, more 77 00:03:24,840 --> 00:03:27,000 Speaker 5: so than the other streaming services, has done a good 78 00:03:27,040 --> 00:03:29,960 Speaker 5: job of making sure that there is this steady drum 79 00:03:30,000 --> 00:03:32,480 Speaker 5: beat of oh, you've got to stick around because Wednesday's 80 00:03:32,480 --> 00:03:32,880 Speaker 5: coming back. 81 00:03:32,919 --> 00:03:34,760 Speaker 4: Oh you got to stick around, and Stranger Things is 82 00:03:34,760 --> 00:03:35,160 Speaker 4: coming back. 83 00:03:35,560 --> 00:03:37,600 Speaker 2: Yeah, it's brilliant. I mean, it's an easy service to cancel. 84 00:03:37,680 --> 00:03:40,120 Speaker 2: They kind of pride themselves on that. But there's no 85 00:03:40,200 --> 00:03:42,440 Speaker 2: reason to cancel if you want to watch that next thing. 86 00:03:42,480 --> 00:03:45,080 Speaker 3: I promise. We talked about HBO because my mind was 87 00:03:45,320 --> 00:03:45,720 Speaker 3: blown a. 88 00:03:45,680 --> 00:03:50,560 Speaker 2: Little earlier today when we got a report from Lucas 89 00:03:50,600 --> 00:03:55,560 Speaker 2: Shag Kelsey Griffiths that Warner Brothers Discovery is in the 90 00:03:55,640 --> 00:03:59,600 Speaker 2: running for Netflix. Yeah, which is a little bit of 91 00:03:59,600 --> 00:04:03,040 Speaker 2: a surprise to me given what we heard from Greg 92 00:04:03,080 --> 00:04:06,240 Speaker 2: Peters that they're builders, no buyers. But Lucas made the 93 00:04:06,280 --> 00:04:08,000 Speaker 2: point to us on our air in the two o'clock 94 00:04:08,040 --> 00:04:10,119 Speaker 2: hour that maybe they could carve it up a little 95 00:04:10,160 --> 00:04:12,320 Speaker 2: bit and they would get the studio, and he made 96 00:04:12,320 --> 00:04:14,640 Speaker 2: this comment that they might not even take HBO and 97 00:04:14,680 --> 00:04:17,680 Speaker 2: they just feed HBO's programming. And I was like, that's 98 00:04:17,760 --> 00:04:19,840 Speaker 2: a crazy world that we're living in when like less 99 00:04:19,839 --> 00:04:24,360 Speaker 2: than a decade ago, you know, you had Readhastings saying 100 00:04:24,400 --> 00:04:27,280 Speaker 2: we want to become HBO faster than HBO becomes us. 101 00:04:27,839 --> 00:04:30,520 Speaker 3: And now they are. They are the media giant, they 102 00:04:30,560 --> 00:04:31,240 Speaker 3: are the incumbent. 103 00:04:31,400 --> 00:04:35,000 Speaker 5: Yeah, and meanwhile, HBO's parent company has been staggering through one, 104 00:04:35,560 --> 00:04:37,320 Speaker 5: you know, m and a deal after another and they 105 00:04:37,400 --> 00:04:40,680 Speaker 5: haven't worked out. And so once again we're talking about 106 00:04:40,760 --> 00:04:44,119 Speaker 5: who's going to buy Warner Brothers Discovery's assets, And today 107 00:04:44,120 --> 00:04:47,000 Speaker 5: they're saying, well, you know, we have interest from multiple parties. 108 00:04:47,320 --> 00:04:49,840 Speaker 5: We were going to reorganize the company and these two. 109 00:04:50,080 --> 00:04:52,280 Speaker 5: You know, one part of the company would be focused 110 00:04:52,320 --> 00:04:54,280 Speaker 5: on the studios and streaming. The other part would be 111 00:04:54,360 --> 00:04:57,839 Speaker 5: the TV networks. But maybe, you know, we'll be open 112 00:04:57,920 --> 00:05:01,680 Speaker 5: to different possibilities, including in pretend actually selling parts instead 113 00:05:01,680 --> 00:05:02,160 Speaker 5: of the whole. 114 00:05:03,000 --> 00:05:04,880 Speaker 4: And yeah, I think Netflix. 115 00:05:04,520 --> 00:05:09,080 Speaker 5: Clearly wouldn't want to be owning a bunch of cable networks. 116 00:05:09,120 --> 00:05:11,080 Speaker 5: They don't want to own CNN, they don't want. 117 00:05:11,000 --> 00:05:12,840 Speaker 4: To get into that business. But would they take a 118 00:05:12,920 --> 00:05:14,160 Speaker 4: look at the library? 119 00:05:14,200 --> 00:05:17,000 Speaker 5: I think due diligence you have to, because Warner Brothers 120 00:05:17,080 --> 00:05:21,040 Speaker 5: Discovery still has one of the biggest, richest libraries of IP. 121 00:05:20,960 --> 00:05:21,320 Speaker 4: In the world. 122 00:05:21,360 --> 00:05:24,920 Speaker 5: They have Harry Potter, they have you know, the Hobbit Universe, 123 00:05:24,960 --> 00:05:27,320 Speaker 5: they have DC Universe, they have so many different things. 124 00:05:27,480 --> 00:05:29,720 Speaker 2: What would happen if you had walked into Richard Klepler's 125 00:05:29,720 --> 00:05:32,120 Speaker 2: office ten years ago and said. 126 00:05:33,960 --> 00:05:34,880 Speaker 3: Netflix could buy you. 127 00:05:35,200 --> 00:05:37,000 Speaker 4: Yeah, he'd have a stroke. I mean, this is just 128 00:05:37,240 --> 00:05:39,560 Speaker 4: like the face crazy world. 129 00:05:40,160 --> 00:05:43,159 Speaker 5: It's been very topsy turvy, and you know Netflix Star 130 00:05:43,320 --> 00:05:46,839 Speaker 5: has risen to the point where, yeah, they're the dominant 131 00:05:46,880 --> 00:05:49,640 Speaker 5: streaming service and they're in control and they can kick 132 00:05:49,720 --> 00:05:53,000 Speaker 5: the tires on uh, you know, the entire company or 133 00:05:53,080 --> 00:05:54,960 Speaker 5: whatever bits and pieces at the. 134 00:05:55,000 --> 00:05:57,320 Speaker 1: Time Warner like happening all over again or something, or. 135 00:05:58,760 --> 00:05:59,960 Speaker 4: To go through the whole history. 136 00:06:00,040 --> 00:06:03,400 Speaker 5: Yeah, now we had aol Time Warner, we had Time Inc, 137 00:06:03,640 --> 00:06:08,480 Speaker 5: Time Warner Ink, Warner Media at and T Discovery. I mean, 138 00:06:08,520 --> 00:06:11,160 Speaker 5: it's just you have to Yeah, it's a whole alphabet 139 00:06:11,200 --> 00:06:14,920 Speaker 5: of different companies that have now been in charge of this. 140 00:06:15,120 --> 00:06:19,120 Speaker 1: It's content still king, yeah, but it's king for. 141 00:06:19,240 --> 00:06:21,400 Speaker 5: Five minutes and then the next thing comes down the 142 00:06:21,440 --> 00:06:23,800 Speaker 5: pipeline you have to It's so it's just endless. 143 00:06:23,960 --> 00:06:24,760 Speaker 4: You can never rest. 144 00:06:25,160 --> 00:06:29,360 Speaker 2: Is Netflix a good indication of the US economy? Is 145 00:06:29,520 --> 00:06:32,800 Speaker 2: US Netflix penetration? Is it discretionary? 146 00:06:33,080 --> 00:06:33,640 Speaker 3: In your view? 147 00:06:34,360 --> 00:06:40,159 Speaker 5: I think that it's proven that consumers are fairly willing 148 00:06:40,279 --> 00:06:42,280 Speaker 5: to pay more for it. You know, they've been right 149 00:06:42,480 --> 00:06:46,200 Speaker 5: raising the prices and people haven't been canceling, which is, 150 00:06:46,400 --> 00:06:49,760 Speaker 5: you know, somewhat a good sign for Netflix that the 151 00:06:49,880 --> 00:06:52,360 Speaker 5: demand has proven strong regardless. 152 00:06:52,400 --> 00:06:53,520 Speaker 4: And I see that in my own house. 153 00:06:53,560 --> 00:06:55,640 Speaker 5: It seems like Netflix has become kind of like the 154 00:06:55,760 --> 00:06:58,560 Speaker 5: base one you keep and then you cycle in these other. 155 00:06:58,520 --> 00:07:01,440 Speaker 4: Ones as sort of these ancillary add ons. 156 00:07:02,040 --> 00:07:05,120 Speaker 5: And I think that's the position that Netflix has wanted, 157 00:07:05,240 --> 00:07:08,039 Speaker 5: and that's the position that HBO enjoyed as the. 158 00:07:08,080 --> 00:07:10,960 Speaker 4: First mover premium cable network for decades. 159 00:07:11,040 --> 00:07:14,120 Speaker 5: You know, it was always you get HBO and do 160 00:07:14,280 --> 00:07:15,920 Speaker 5: you want showtime or cinemas? 161 00:07:15,960 --> 00:07:18,360 Speaker 4: So do you want you know, one of these other services? 162 00:07:18,440 --> 00:07:21,760 Speaker 5: Now, Netflix very much has that primary foundational position. 163 00:07:21,960 --> 00:07:23,800 Speaker 1: That just seems so sweet and it wasn't such a 164 00:07:23,840 --> 00:07:26,840 Speaker 1: long time ago. Felix, do not go anywhere. Let's bring 165 00:07:26,920 --> 00:07:30,600 Speaker 1: into the conversation Mark Douglas, founder, chairman, president and CEO 166 00:07:31,000 --> 00:07:33,280 Speaker 1: of the publicly traded one point two billion dollar market 167 00:07:33,360 --> 00:07:38,520 Speaker 1: cap advertising and marketing company Mountain. Joining us here, Mark Kamani, 168 00:07:38,560 --> 00:07:41,120 Speaker 1: and good to have you back with us. Carol Masser, 169 00:07:41,200 --> 00:07:44,200 Speaker 1: Tim Steneveek, and Felix je Lette, all of Bloomberg. Here, 170 00:07:44,680 --> 00:07:47,280 Speaker 1: walk us through what you see is interesting from Netflix 171 00:07:47,320 --> 00:07:50,400 Speaker 1: as the stock continues to be under some pressure here 172 00:07:50,520 --> 00:07:52,160 Speaker 1: in the aftermarket. Let me just bring it up on 173 00:07:52,200 --> 00:07:55,040 Speaker 1: my Bloomberg just to update everybody. It's down about four 174 00:07:55,080 --> 00:07:56,160 Speaker 1: point three percent here. 175 00:07:57,080 --> 00:08:00,480 Speaker 6: Yeah, well, I think obviously investors are reacting to the 176 00:08:00,640 --> 00:08:04,160 Speaker 6: slightly mixed earnings results. But the industry as a whole 177 00:08:04,320 --> 00:08:08,160 Speaker 6: right now, I think is in its entirety, is a 178 00:08:08,240 --> 00:08:12,160 Speaker 6: bit in a transition. We are fully fully moving into 179 00:08:12,880 --> 00:08:17,080 Speaker 6: Streaming is the dominant form of ad sales in the industry, 180 00:08:17,200 --> 00:08:20,440 Speaker 6: meaning the Disney's Netflix of course be goes They're only 181 00:08:20,480 --> 00:08:24,440 Speaker 6: streaming and things like that. Live sports is becoming a. 182 00:08:24,560 --> 00:08:25,640 Speaker 7: Really really big deal. 183 00:08:25,760 --> 00:08:29,120 Speaker 6: Something in Netflix is sabbling in a bit, and so 184 00:08:29,520 --> 00:08:31,880 Speaker 6: I feel like right now there's just a lot of 185 00:08:32,040 --> 00:08:36,079 Speaker 6: the same and it's just execution is the key word. 186 00:08:36,920 --> 00:08:39,320 Speaker 6: You're not going to see a bunch of big announcements, 187 00:08:39,360 --> 00:08:41,959 Speaker 6: You're just going to see everyone focused on growth. I 188 00:08:42,080 --> 00:08:47,440 Speaker 6: also think the potential to acquire a Warner Brothers Discovery 189 00:08:47,640 --> 00:08:50,360 Speaker 6: is very interesting, and I think the value of Discovery 190 00:08:50,520 --> 00:08:54,280 Speaker 6: is possibly being you know, underestimated what Netflix could do 191 00:08:54,400 --> 00:08:58,959 Speaker 6: with the all the Discovery content and essentially reignite a 192 00:08:59,000 --> 00:08:59,840 Speaker 6: lot of that content. 193 00:09:00,120 --> 00:09:02,839 Speaker 2: So Mark, do you think Netflix should do it? Should 194 00:09:02,840 --> 00:09:05,319 Speaker 2: Netflix buy Warner Brothers Discovery or at least parts of it? 195 00:09:06,240 --> 00:09:10,079 Speaker 6: I personally think it would be a terrific move. I mean, 196 00:09:10,160 --> 00:09:12,880 Speaker 6: I don't know if that means the end of you know, 197 00:09:13,080 --> 00:09:14,360 Speaker 6: CNN period. 198 00:09:14,640 --> 00:09:17,360 Speaker 2: Well, you know, remember they're carving they're carving off the 199 00:09:17,480 --> 00:09:21,840 Speaker 2: live TV portion anyway in this you know, potential spin 200 00:09:21,880 --> 00:09:23,480 Speaker 2: off at this point, so they wouldn't have to buy 201 00:09:23,520 --> 00:09:25,400 Speaker 2: at all our reported I. 202 00:09:25,400 --> 00:09:28,080 Speaker 7: Mean, it's just fantastic assets there. 203 00:09:28,360 --> 00:09:33,920 Speaker 6: I mean, White Lotus and the Dragons and almost the 204 00:09:34,160 --> 00:09:39,840 Speaker 6: entire Discovery catalog that can be not only turned into 205 00:09:39,960 --> 00:09:43,439 Speaker 6: content people still love to watch, but whole new seasons 206 00:09:43,880 --> 00:09:48,040 Speaker 6: of content and you know, and probably at a discount 207 00:09:48,520 --> 00:09:50,719 Speaker 6: in terms of the purchase price. I think I think 208 00:09:50,920 --> 00:09:53,439 Speaker 6: it makes a lot of sense for Netflix and and 209 00:09:53,600 --> 00:09:54,280 Speaker 6: really anyone. 210 00:09:54,559 --> 00:09:55,520 Speaker 7: I think Warner. 211 00:09:55,360 --> 00:09:58,760 Speaker 6: Brothers Discovery is honestly, and I know a lot of 212 00:09:58,800 --> 00:10:00,559 Speaker 6: people there, so I hope they're not going to hate me, 213 00:10:01,040 --> 00:10:04,280 Speaker 6: but like they, it just hasn't been managed well. The 214 00:10:04,520 --> 00:10:08,400 Speaker 6: assets were there to turn that into a true challenger, 215 00:10:08,760 --> 00:10:12,880 Speaker 6: and and it just you know, continues to do reasonably well, 216 00:10:12,960 --> 00:10:15,760 Speaker 6: but not I think we should have arrived at this point, if. 217 00:10:15,679 --> 00:10:17,480 Speaker 3: You like, come on back in here. You you wrote 218 00:10:17,520 --> 00:10:20,640 Speaker 3: the book on HBO. What what happened? The missteps at 219 00:10:20,679 --> 00:10:24,160 Speaker 3: Warner Brothers Discovery is how much time do we have? 220 00:10:24,320 --> 00:10:27,319 Speaker 7: But it is marketing here. 221 00:10:27,600 --> 00:10:29,199 Speaker 2: Your view is Mark right that it was about it 222 00:10:29,320 --> 00:10:32,199 Speaker 2: was about the running of it rather than about just 223 00:10:32,280 --> 00:10:35,000 Speaker 2: the challenges of the industry. 224 00:10:35,360 --> 00:10:37,760 Speaker 4: I think the technology change a bunch of different factors. 225 00:10:37,840 --> 00:10:41,839 Speaker 5: I think as you remember the deal, you know, there's 226 00:10:41,840 --> 00:10:45,120 Speaker 5: been just so many deals that have gone through this 227 00:10:45,240 --> 00:10:48,920 Speaker 5: company and so many reorganizations, and it makes you dizzy 228 00:10:49,000 --> 00:10:51,079 Speaker 5: when you think about it. I think in terms of 229 00:10:51,160 --> 00:10:56,160 Speaker 5: the assets, yeah, on paper they look amazing, but you know, 230 00:10:56,679 --> 00:11:00,120 Speaker 5: the idea of just you know, piling a whole lot 231 00:11:00,160 --> 00:11:02,920 Speaker 5: of different assets into one service. Adding They thought that 232 00:11:03,080 --> 00:11:05,440 Speaker 5: adding all the Discovery shows was going to be great 233 00:11:05,520 --> 00:11:08,839 Speaker 5: for HBO Max. As you recalled, they changed the name 234 00:11:08,880 --> 00:11:11,600 Speaker 5: of the service to Max. Well, we're broadening it out, 235 00:11:11,679 --> 00:11:12,200 Speaker 5: We're going to have. 236 00:11:12,280 --> 00:11:13,319 Speaker 4: Something for everybody. 237 00:11:13,679 --> 00:11:15,319 Speaker 5: And then it turns out that a lot of that 238 00:11:15,520 --> 00:11:19,360 Speaker 5: programming was not compelling to the same audience. People didn't 239 00:11:19,400 --> 00:11:21,719 Speaker 5: want the lean back programming, and so, you know, a 240 00:11:21,760 --> 00:11:23,440 Speaker 5: couple of years into that, they say, oh, we're going 241 00:11:23,520 --> 00:11:26,880 Speaker 5: to get rid of some of that Discovery reality programming 242 00:11:27,000 --> 00:11:27,600 Speaker 5: from the service. 243 00:11:27,640 --> 00:11:29,880 Speaker 4: We're going to go back to naming it HBO Max. 244 00:11:30,640 --> 00:11:32,439 Speaker 5: So sometimes I think you have to be wary of 245 00:11:33,040 --> 00:11:36,199 Speaker 5: this idea that more is always more in the streaming world, 246 00:11:36,640 --> 00:11:39,600 Speaker 5: the assets have to make set. Yes, Netflix has built 247 00:11:39,760 --> 00:11:41,520 Speaker 5: kind of the Walmart of streaming. 248 00:11:41,640 --> 00:11:42,960 Speaker 4: It's something for everybody. 249 00:11:43,200 --> 00:11:46,920 Speaker 5: But even so they've been very cautious in their approach 250 00:11:47,000 --> 00:11:50,680 Speaker 5: and doing it, you know, step by step, adding things 251 00:11:50,760 --> 00:11:54,400 Speaker 5: in slowly. And you know, you've seen them lately making 252 00:11:54,440 --> 00:11:56,400 Speaker 5: this deal with Spotify where they're now going to bring 253 00:11:57,080 --> 00:12:00,640 Speaker 5: podcasts onto Netflix, and you know, they've been trying for 254 00:12:00,760 --> 00:12:04,720 Speaker 5: years to get some sort of topical comedy show working. 255 00:12:05,080 --> 00:12:07,400 Speaker 5: Everything they've tried has failed, and so this will be 256 00:12:07,440 --> 00:12:11,080 Speaker 5: another opportunity for them to try that, you know, adding 257 00:12:11,240 --> 00:12:16,520 Speaker 5: everything from the HBO and the broader Warner Brothers library 258 00:12:16,640 --> 00:12:19,479 Speaker 5: onto the service that once could be a little bit overwhelming. 259 00:12:20,440 --> 00:12:23,520 Speaker 5: And so again the cadence of how you roll these 260 00:12:23,559 --> 00:12:25,600 Speaker 5: things out is very important in the streaming world. 261 00:12:25,800 --> 00:12:28,720 Speaker 1: Mark Douglas, you know, you have a front row seat 262 00:12:28,840 --> 00:12:32,240 Speaker 1: in terms of the advertising market when it comes to 263 00:12:32,400 --> 00:12:34,719 Speaker 1: certainly these streaming companies. I mean, what does it look 264 00:12:34,840 --> 00:12:37,800 Speaker 1: like right now? Is there demand? Is there too many 265 00:12:37,880 --> 00:12:40,120 Speaker 1: places to put it? Like, give us, give us some 266 00:12:40,240 --> 00:12:41,079 Speaker 1: size and scope here. 267 00:12:41,840 --> 00:12:45,199 Speaker 6: Well, there's once Netflix and Disney Plus kind of came 268 00:12:45,240 --> 00:12:49,760 Speaker 6: into market, and of course Amazon Prime. It created you know, 269 00:12:49,960 --> 00:12:54,160 Speaker 6: a surplus of inventory and it's created down with pressure 270 00:12:54,240 --> 00:12:58,800 Speaker 6: on prices. But overall, I think the big thing that 271 00:12:58,920 --> 00:13:01,800 Speaker 6: affected Netflix go back to them is they came into 272 00:13:01,880 --> 00:13:05,320 Speaker 6: that market thinking that we're going to get Netflix prices, 273 00:13:05,400 --> 00:13:08,640 Speaker 6: which for advertising are not like the consumer prices. They're 274 00:13:08,720 --> 00:13:11,679 Speaker 6: like they wanted the highest prices in the industry to 275 00:13:11,800 --> 00:13:15,839 Speaker 6: advertise on Netflix. They and that essentially got rejected and 276 00:13:16,400 --> 00:13:20,959 Speaker 6: the advertisers. A big agency said, look, we want to 277 00:13:21,040 --> 00:13:23,320 Speaker 6: be on Netflix, but we're not going to pay Super 278 00:13:23,360 --> 00:13:26,760 Speaker 6: Bowl prices to do it. And so Netflix had to adjust, 279 00:13:26,840 --> 00:13:30,600 Speaker 6: They had to reboot their ad effort somewhat. They've teamed 280 00:13:30,679 --> 00:13:34,480 Speaker 6: up a bit with Amazon, and I think it's still 281 00:13:34,559 --> 00:13:36,400 Speaker 6: going to grow and I think they will do well. 282 00:13:36,520 --> 00:13:38,800 Speaker 6: But it's definitely taking longer than I think they. 283 00:13:38,840 --> 00:13:39,480 Speaker 7: Thought it would. 284 00:13:39,960 --> 00:13:42,120 Speaker 6: But I would still bet on it long term that 285 00:13:42,200 --> 00:13:46,360 Speaker 6: if you take their continued growth in subscribers, I believe 286 00:13:46,520 --> 00:13:49,720 Speaker 6: still more than half of the new subscribers are ads supported, 287 00:13:49,800 --> 00:13:52,480 Speaker 6: that they will figure out how to monetize that, and 288 00:13:52,640 --> 00:13:55,520 Speaker 6: that additional growth factor will keep them growing for a 289 00:13:55,840 --> 00:13:58,640 Speaker 6: very long time. And I still think I said last year, 290 00:13:58,679 --> 00:14:01,560 Speaker 6: I think Netflix has the potential to be the first 291 00:14:01,640 --> 00:14:02,840 Speaker 6: trillion dollar media company. 292 00:14:02,880 --> 00:14:04,040 Speaker 7: I still firmly believe that. 293 00:14:05,240 --> 00:14:10,560 Speaker 5: Mark are there any particular demographics for Netflix in terms 294 00:14:10,600 --> 00:14:13,000 Speaker 5: of the advertising that they could still get better in? 295 00:14:13,840 --> 00:14:15,480 Speaker 5: You know, we're talking about how it's a very broad 296 00:14:15,559 --> 00:14:18,559 Speaker 5: service at this point, kind of all things to all people. 297 00:14:19,080 --> 00:14:21,120 Speaker 4: Is there any piece of that that they're missing? 298 00:14:22,320 --> 00:14:24,840 Speaker 6: Not really, because it's the advertising is not done that 299 00:14:24,920 --> 00:14:28,400 Speaker 6: way anymore. It's it's it's audiences, but the audiences are 300 00:14:28,440 --> 00:14:30,920 Speaker 6: no longer you know, women in this age range. The 301 00:14:31,000 --> 00:14:35,600 Speaker 6: audiences are people shopping for particular type of products and 302 00:14:35,680 --> 00:14:38,440 Speaker 6: they have you know, they have so many people watching 303 00:14:38,520 --> 00:14:41,600 Speaker 6: Netflix that there's an audience for everyone. The biggest challenge 304 00:14:41,680 --> 00:14:44,800 Speaker 6: Netflix is having in advertising is the industry has moved 305 00:14:45,200 --> 00:14:49,040 Speaker 6: fully programmatic. The ad sales are not are nearly fully programmatic. 306 00:14:49,320 --> 00:14:52,280 Speaker 6: The ad sales are not done over the phone near anymore. 307 00:14:52,360 --> 00:14:55,040 Speaker 6: There's not linear bundles, the or anything like that. And 308 00:14:55,200 --> 00:14:58,200 Speaker 6: Netflix is playing catch up in that game where they're 309 00:14:58,280 --> 00:15:01,600 Speaker 6: building their own AD stack, moving off the Microsoft ad 310 00:15:01,680 --> 00:15:05,360 Speaker 6: stack that they initially teamed up with Microsoft on and 311 00:15:05,480 --> 00:15:08,880 Speaker 6: it's taking time, and so they're losing out to a 312 00:15:08,960 --> 00:15:13,280 Speaker 6: lot of the more targeted advertising on television because they're 313 00:15:13,320 --> 00:15:15,520 Speaker 6: playing catchup. But once they get there, I think you'll 314 00:15:15,520 --> 00:15:19,920 Speaker 6: see their revenue accelerate very very quickly in terms of 315 00:15:19,960 --> 00:15:21,960 Speaker 6: their ad sales, and that's going to probably post some 316 00:15:22,120 --> 00:15:23,840 Speaker 6: really outstanding quarters when they do that. 317 00:15:24,040 --> 00:15:25,960 Speaker 1: Hey, Mark, from what you are seeing though about ad 318 00:15:26,080 --> 00:15:28,640 Speaker 1: sales and how it pertains to Netflix specifically, I'm not 319 00:15:28,680 --> 00:15:31,960 Speaker 1: quite sure how much you can drill down with what 320 00:15:32,120 --> 00:15:33,880 Speaker 1: you are seeing in the data you are seeing, But 321 00:15:34,520 --> 00:15:37,480 Speaker 1: does it give us any indication of about how well 322 00:15:37,600 --> 00:15:40,440 Speaker 1: Netflix is holding on to its audience in the US 323 00:15:40,560 --> 00:15:44,560 Speaker 1: globally if it indicates anything about churn, Is there anything 324 00:15:44,640 --> 00:15:45,560 Speaker 1: that you can glean from that? 325 00:15:46,680 --> 00:15:49,360 Speaker 7: I get the question. 326 00:15:49,680 --> 00:15:54,000 Speaker 6: I don't think so, because less than half of their users, 327 00:15:54,600 --> 00:15:56,800 Speaker 6: you know, the new half, the newest users are more 328 00:15:56,840 --> 00:15:59,960 Speaker 6: than half, but less than half the overall customer base 329 00:16:00,160 --> 00:16:02,240 Speaker 6: is AD support. I think quite a bit less than half. 330 00:16:02,680 --> 00:16:05,760 Speaker 6: That'll change over time. And then even with then they 331 00:16:05,840 --> 00:16:08,720 Speaker 6: don't have high AD loads. So just because you know 332 00:16:08,920 --> 00:16:12,440 Speaker 6: they're they're not serving that many ads given the number 333 00:16:12,440 --> 00:16:15,000 Speaker 6: of people that have signed up to receive them. So 334 00:16:15,160 --> 00:16:17,920 Speaker 6: we're it's a bit of time away before and they're 335 00:16:17,960 --> 00:16:21,840 Speaker 6: not fully programmatic where that data is just literally streaming 336 00:16:22,120 --> 00:16:22,720 Speaker 6: out to give you. 337 00:16:22,920 --> 00:16:23,440 Speaker 7: To give you some. 338 00:16:23,520 --> 00:16:28,240 Speaker 6: Concrete numbers, we receive four million AD requests to buy 339 00:16:28,320 --> 00:16:32,120 Speaker 6: a TV at per second at Mountain and Netflix is 340 00:16:32,240 --> 00:16:34,920 Speaker 6: nearly zero in that because they're still doing the sales 341 00:16:35,040 --> 00:16:37,840 Speaker 6: kind of like calling the brands and not doing it 342 00:16:37,960 --> 00:16:40,480 Speaker 6: in a new way, which is it's all electronic. It's 343 00:16:40,600 --> 00:16:43,400 Speaker 6: like the move on Wall Street from having traders to 344 00:16:43,520 --> 00:16:46,440 Speaker 6: being you know, electronic fully electronic trading. 345 00:16:46,720 --> 00:16:48,160 Speaker 7: Netflix hasn't gotten there yet. 346 00:16:49,320 --> 00:16:49,920 Speaker 3: Yeah, I'm looking. 347 00:16:50,040 --> 00:16:52,040 Speaker 2: I'm just looking through the press release, the company says 348 00:16:52,040 --> 00:16:54,120 Speaker 2: we've come a long way and building our advertising business 349 00:16:54,160 --> 00:16:56,520 Speaker 2: in less than three years. In that time, we've gone 350 00:16:56,520 --> 00:16:59,200 Speaker 2: from zero members on our ads planned to achieving sufficient 351 00:16:59,280 --> 00:17:02,200 Speaker 2: scale and all all of our ads markets. We'll continue 352 00:17:02,200 --> 00:17:04,000 Speaker 2: to grow from here, building out our ad sales and 353 00:17:04,080 --> 00:17:07,920 Speaker 2: operations team and enhancing our capabilities for advertisers, including launching 354 00:17:07,960 --> 00:17:11,639 Speaker 2: our own first party ad tech stack, Netflix Ads Suite. 355 00:17:11,920 --> 00:17:13,720 Speaker 2: Will that mark change things? 356 00:17:13,760 --> 00:17:17,480 Speaker 6: That's yeah, that's the change. That's what we're waiting on, 357 00:17:17,720 --> 00:17:20,360 Speaker 6: and that will help the monetization. And really nice thing 358 00:17:20,720 --> 00:17:23,200 Speaker 6: to think about is someone you know, deciding whether you 359 00:17:23,240 --> 00:17:26,800 Speaker 6: should invest in Netflix or continue. That is like password 360 00:17:26,920 --> 00:17:30,240 Speaker 6: sharing and the analogy I mean in that it's a 361 00:17:30,480 --> 00:17:36,000 Speaker 6: backlog of revenue. When that releases, it's gonna unleash additional revenue. 362 00:17:36,359 --> 00:17:37,920 Speaker 7: So they have this growing backlog. 363 00:17:38,000 --> 00:17:40,800 Speaker 6: The users as saying, hey, i'll get ads, just give them, 364 00:17:40,840 --> 00:17:43,800 Speaker 6: you know, but they don't have the ability to serve 365 00:17:43,920 --> 00:17:47,000 Speaker 6: them as fast as people are saying they'll receive them. 366 00:17:47,400 --> 00:17:50,440 Speaker 6: When that catches up, that's like a whole new growth 367 00:17:50,560 --> 00:17:53,480 Speaker 6: factor for the company. That's like a bat and and 368 00:17:53,920 --> 00:17:55,960 Speaker 6: you're going to see that, you know, some really nice 369 00:17:56,040 --> 00:17:58,919 Speaker 6: quarters the way we saw really nice quarters when they 370 00:17:58,960 --> 00:18:00,800 Speaker 6: got a little stricter about the passwords. 371 00:18:01,040 --> 00:18:04,560 Speaker 2: So, Felix, you have been covering the industry for long 372 00:18:04,640 --> 00:18:06,760 Speaker 2: enough to remember Netflix saying we're never going to do ads, 373 00:18:06,760 --> 00:18:08,679 Speaker 2: We're never going to do live content, we're never going 374 00:18:08,760 --> 00:18:12,000 Speaker 2: to do sports. Of course, it's done all those things 375 00:18:12,080 --> 00:18:16,240 Speaker 2: and kind of excelled in most of those things. What 376 00:18:16,440 --> 00:18:17,800 Speaker 2: is Netflix not done yet? 377 00:18:18,160 --> 00:18:22,159 Speaker 4: Well, I guess the acquisitions right the circle back to 378 00:18:22,240 --> 00:18:23,320 Speaker 4: where we started. 379 00:18:24,600 --> 00:18:25,960 Speaker 1: In the press release about that. 380 00:18:27,000 --> 00:18:29,639 Speaker 3: Yeah, let me do a quick search for Warner Brothers. 381 00:18:29,720 --> 00:18:30,280 Speaker 3: Nothing in there. 382 00:18:30,440 --> 00:18:31,960 Speaker 1: I mean, is that what everybody's going to talk to 383 00:18:32,080 --> 00:18:33,760 Speaker 1: I mean, is that what everybody has to talk to 384 00:18:33,800 --> 00:18:34,760 Speaker 1: you on the call? 385 00:18:34,960 --> 00:18:37,200 Speaker 5: Or what I mean? I think that's you know, that's 386 00:18:37,280 --> 00:18:40,280 Speaker 5: a big point of discussion at this point. Would they 387 00:18:40,320 --> 00:18:42,200 Speaker 5: go out and buy a big library again, They've they've 388 00:18:42,240 --> 00:18:44,399 Speaker 5: said for years that they wouldn't do that. They you know, 389 00:18:44,600 --> 00:18:47,359 Speaker 5: have been building their franchises themselves, and they've done a 390 00:18:47,400 --> 00:18:50,600 Speaker 5: good job of that. But you know, there's a lot 391 00:18:50,640 --> 00:18:52,320 Speaker 5: of franchises out there for sale. 392 00:18:52,400 --> 00:18:56,320 Speaker 4: Right now and would they take a nibbl We'll see. 393 00:18:56,880 --> 00:18:59,280 Speaker 1: I mean, I don't know, Mark last thought question to you. 394 00:18:59,400 --> 00:19:01,639 Speaker 1: I mean, I'm just we're waiting for the call with 395 00:19:01,800 --> 00:19:04,320 Speaker 1: investors and analysts, like what's going to come up on 396 00:19:04,359 --> 00:19:05,960 Speaker 1: a day where we're trying to figure out what happens 397 00:19:06,000 --> 00:19:08,720 Speaker 1: with Warner Brothers Discovery? Is that what's top of mind 398 00:19:08,760 --> 00:19:09,719 Speaker 1: for you with this company? 399 00:19:10,800 --> 00:19:13,359 Speaker 6: The I mean, like I said, I think they really 400 00:19:14,160 --> 00:19:17,440 Speaker 6: getting the ads to monetize at the level at which 401 00:19:17,600 --> 00:19:20,200 Speaker 6: is signing up users to receive them, I think is 402 00:19:20,280 --> 00:19:23,240 Speaker 6: the number one thing as an investor that I'd be 403 00:19:23,440 --> 00:19:26,000 Speaker 6: looking for. But I think in terms of the content 404 00:19:26,119 --> 00:19:28,520 Speaker 6: and whether they should buy content, you heard my opinion. 405 00:19:28,720 --> 00:19:32,399 Speaker 6: I think HBO Max just has an incredible catalog of 406 00:19:32,480 --> 00:19:35,720 Speaker 6: shows that they can you know, can feed their audience 407 00:19:35,880 --> 00:19:40,680 Speaker 6: and actually expand like like reignite and build new episodes. 408 00:19:40,720 --> 00:19:47,600 Speaker 6: So I think that is the best property that's outside 409 00:19:47,680 --> 00:19:52,720 Speaker 6: of like Disney and Netflix. Like is HBO is Warner 410 00:19:52,800 --> 00:19:57,480 Speaker 6: Brothers Discoveries? I always think HBO Max, HBO and Discovery 411 00:19:57,560 --> 00:19:59,920 Speaker 6: general as the two premier properties. 412 00:20:00,080 --> 00:20:03,720 Speaker 2: Then Mark Douglas, Founder, chairman, president and CEO of Mountain 413 00:20:04,000 --> 00:20:06,159 Speaker 2: joining us from Miami, And also a big thank you 414 00:20:06,400 --> 00:20:09,680 Speaker 2: to Felix Gilletti's Bloomberg News Media and Entertainment editor. He's 415 00:20:09,720 --> 00:20:12,040 Speaker 2: also the author of It's Not TV, The Spectacular Rise, 416 00:20:12,119 --> 00:20:14,480 Speaker 2: Revolution and Future of HBO. 417 00:20:14,680 --> 00:20:16,640 Speaker 1: All right, so let's get to it with our own 418 00:20:16,640 --> 00:20:20,720 Speaker 1: Bloomberg Intelligence Senior Media analyst, Guita Ranganathon. She's at BI 419 00:20:20,800 --> 00:20:23,480 Speaker 1: headquarters in Princeton, New Jersey. Take it away, So tell 420 00:20:23,560 --> 00:20:25,480 Speaker 1: us what we need to know and why is the 421 00:20:25,520 --> 00:20:28,280 Speaker 1: stock really down? Is it because of that one time charge? 422 00:20:29,640 --> 00:20:34,040 Speaker 8: Absolutely, Carol, So operating margin is now the new metric 423 00:20:34,280 --> 00:20:37,359 Speaker 8: by you, how investors kind of look at this company. 424 00:20:37,880 --> 00:20:40,520 Speaker 8: We've seen just a tremendous increase in the way that 425 00:20:40,640 --> 00:20:43,400 Speaker 8: they have kind of grown their profits, in the way 426 00:20:43,440 --> 00:20:45,439 Speaker 8: that they've expanded their margins. It was up over six 427 00:20:45,520 --> 00:20:48,480 Speaker 8: hundred basis points last year. We were really expecting them 428 00:20:48,520 --> 00:20:52,440 Speaker 8: to actually exceed their guidance for both this quarter as 429 00:20:52,480 --> 00:20:55,440 Speaker 8: well as to take up guidance for the full year. 430 00:20:55,480 --> 00:20:57,639 Speaker 8: So this kind of really throws cold water, and all 431 00:20:57,680 --> 00:21:02,520 Speaker 8: of those expectations overall kind of looks really really underwhelming. 432 00:21:02,800 --> 00:21:05,919 Speaker 2: What's the what's the biggest thing challenging the company right now? 433 00:21:07,440 --> 00:21:09,399 Speaker 8: I mean, the biggest thing I think tim over the 434 00:21:09,480 --> 00:21:12,240 Speaker 8: past few months has really been you know, the growth 435 00:21:12,320 --> 00:21:14,560 Speaker 8: of AI and whether that's going to be a headwind 436 00:21:14,640 --> 00:21:17,240 Speaker 8: or a tailwind for Netflix. I think we've all kind 437 00:21:17,320 --> 00:21:20,320 Speaker 8: of finally come to the, you know, conclusion, at least 438 00:21:20,359 --> 00:21:21,719 Speaker 8: in the near term, that it's going to be more 439 00:21:21,760 --> 00:21:24,560 Speaker 8: of a tailwind. We've seen Netflix kind of really lean 440 00:21:24,760 --> 00:21:28,120 Speaker 8: into AI, whether it's using a good user interface, whether 441 00:21:28,160 --> 00:21:31,879 Speaker 8: it's improving that or using you know AI for you know, 442 00:21:32,000 --> 00:21:35,680 Speaker 8: even more more and better content creation. So I think 443 00:21:35,720 --> 00:21:38,639 Speaker 8: definitely in the near term, not don't expect it to 444 00:21:38,720 --> 00:21:41,359 Speaker 8: be much of a negative, but then, you know, I 445 00:21:41,440 --> 00:21:43,879 Speaker 8: think over the longer term that's going to definitely be 446 00:21:44,000 --> 00:21:46,560 Speaker 8: one of the concerns out there for right now, I 447 00:21:46,600 --> 00:21:50,280 Speaker 8: think what investors are really looking to and we need guidance, 448 00:21:50,359 --> 00:21:53,320 Speaker 8: more guidance from Netflix management on this. There really wasn't 449 00:21:53,880 --> 00:21:57,399 Speaker 8: much spoken about this in the newsletter, was you know, 450 00:21:57,480 --> 00:22:01,040 Speaker 8: anything related to advertising. They talk about doubling their advertising revenue, 451 00:22:01,240 --> 00:22:04,119 Speaker 8: but again there are no concrete metrics. There was no 452 00:22:04,400 --> 00:22:07,160 Speaker 8: update in terms of monthly active users. The last time 453 00:22:07,200 --> 00:22:09,600 Speaker 8: we got an update from them was in May. We 454 00:22:09,720 --> 00:22:12,480 Speaker 8: really don't know what the number of subscribers are on 455 00:22:12,600 --> 00:22:16,080 Speaker 8: the ad here or even what the revenue is, and 456 00:22:16,160 --> 00:22:21,320 Speaker 8: I think that will definitely give investors some costs for concern. 457 00:22:21,680 --> 00:22:23,879 Speaker 1: Yeah, they talked about ads, I feel like in the 458 00:22:23,920 --> 00:22:26,440 Speaker 1: press release, but yeah, it sounds like we need a 459 00:22:26,480 --> 00:22:31,800 Speaker 1: little bit more concrete. Hey thirty seconds, Geita, Warner Brothers Discovery. 460 00:22:31,880 --> 00:22:34,600 Speaker 1: Do you think Netflix to do something? And forgive me 461 00:22:34,720 --> 00:22:36,400 Speaker 1: for just asking for you to be brief. 462 00:22:37,480 --> 00:22:38,680 Speaker 8: Yeah, I know this is a little bit of a 463 00:22:38,720 --> 00:22:41,119 Speaker 8: head scratcher, So I really don't think this is a 464 00:22:41,200 --> 00:22:43,080 Speaker 8: make or break for them, Carol, Yes, it would be 465 00:22:43,200 --> 00:22:45,960 Speaker 8: nice to have. Do they absolutely need it? No, not 466 00:22:46,119 --> 00:22:48,639 Speaker 8: at all. So again, there's a lot they can do 467 00:22:48,720 --> 00:22:51,080 Speaker 8: with it, especially the studio lot and you know, all 468 00:22:51,119 --> 00:22:53,400 Speaker 8: of the IP. But again I don't think it's do ordi. 469 00:22:53,400 --> 00:22:56,600 Speaker 1: As always looking forward to reading your research. Piter ring 470 00:22:56,640 --> 00:22:59,119 Speaker 1: anath On, Thank you so much, Bloomberg Intelligence senior media 471 00:22:59,200 --> 00:23:01,480 Speaker 1: analyst with the breakdown and what you need to know 472 00:23:01,520 --> 00:23:02,200 Speaker 1: about Netflix. 473 00:23:09,400 --> 00:23:09,440 Speaker 2: M