Netflix, Inc.

Good afternoon and welcome to the Netflix Q2 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 Ameth from JPMorgan. As a reminder, we'll be making forward-looking statements and actual results may vary. With that, I'll turn it over to Doug now for his first question.

Great. Thanks, Spencer. Great to see all of you and thanks for having me host again today. So there's clearly a lot to talk about on advertising and new initiatives, but let's start with talking about recent trends. So you expected to lose about 2 million subscribers in the quarter and you did a little bit better at a loss of 970,000. What drove the slightly better than expected results in the quarter?

You know, looking at the quarter, Doug, you know, we're executing really well on the content side, obviously. Ozark, Stranger Things, lots of titles, lots of viewing. We're improving everything we do around marketing, improving the service, the merchandising, and, you know, all of that slowly pays off. If there was a single thing, we might say Stranger Things. But again, we're talking about, you know, losing one million instead of losing two million. So, you know, our excitement is tempered by, you know, the less bad results. But, you know, looking forward, streaming is working everywhere. You know, everyone is pouring in. It's definitely the end of linear TV over the next five, 10 years. So very bullish on streaming. And then our core drivers are just continuing to improve. And then, of course, we'll talk later in the call about monetization and how that's improving. So, you know, tough in some ways losing a million and calling it success. But, you know, really we're set up very well for the next year.