Netflix, Inc.

Good afternoon, and welcome to the Netflix Q1 2022 earnings interview. I'm Spencer Wong, VP of IR and Corporate Development. Joining me today are co-CEO Reed Hastings, co-CEO and Chief Content Officer Ted Sarandos, COO and Chief Product Officer Greg Peters, and CFO Spence Newman. Our interviewer this quarter is Doug Anwith from JPMorgan. As a reminder, we'll be making forward-looking statements, and actual results may vary. With that, Doug, I'm going to turn it over to you for the first question.

Great thanks Spencer so your tone in the letter today around competition maturity and macro factors is very different than it was three months ago, I was hoping that you could start out by just walking us through how your views have changed over the past few months.

Yeah, Doug, I mean, I think our views are a little different because our numbers are a little different. If we had made our 2.5 million guidance, I think that was consistent with our thesis and the lower acquisition really forced us to kind of tease apart what's going on. And as we put in the letter, you know, COVID created a lot of noise and how to read the situation, you know, boosted us a lot in 2020. And then in 2021, I think we thoughtfully said it was mostly pull forward, which was the logical conclusion. But now coming into 2022, that doesn't really hold. So then pushing into it, we realized with all of the account sharing, which we've always had, that's not a new thing. But when you add that up together, we're getting pretty high market penetration. And that combined with the competition is really what we think is driving the lower acquisition and lower growth. So on the two parts, we're working on how to monetize sharing. We've been thinking about that for a couple of years, but when we were growing fast, it wasn't the high priority to work on. And now we're working super hard on it. And remember, these are over 100 million households that already are choosing to view Netflix. They love the service. We just got to get paid at some degree for them. So that's part of it. And then two, it's really, we got great competition. They've got some very good shows and films out. And what we got to do is take it up a notch. And I'll tell you that we're all pretty, I know it's disappointing for investors and it is for sure, But internally, we're really geared up and this is like our moment to shine. This is when it all matters. And we're super focused on achieving those objectives and getting back into our investors' good graces.