Netflix, Inc.

Hello, and welcome to the Netflix Q2 2023 earnings interview. I'm Spencer Wong, VP of Finance, IR, and Corporate Development. Joining me today are co-CEOs Ted Sarandos and Greg Peters and CFO Spence Newman. Our interviewer this quarter is Jessica Reef-Ehrlich from Bank of America. As a reminder, we'll be making forward-looking statements and actual results may vary. Jessica, I'll now turn over the call to you for your first question. Thank you.

Well, let's start with the topic du jour. Not one, but two strikes. Can you give us your views of how this affects your business on a practical basis? How far out does your original content take you? And how much of the content spend do you think gets pushed from this year into next year?

Thanks, Jessica. Good afternoon. Thanks for the questions. Let me start by making something absolutely clear. These strikes, this strike is not an outcome that we wanted. We make deals all the time. We are constantly at the table negotiating with writers, with directors, with actors, with producers, with everyone across the industry. And we very much hoped to reach an agreement by now. So I also wanted to say, if I may, on a personal level, I was raised in a union household. My dad was a member of IBEW Local 640. He was a local. He was a union electrician. And I remember his local because that union was very much a part of our lives when I was growing up. And I also remember on more than one occasion, my dad being out on strike. And I remember that because it takes an enormous toll on your family financially and emotionally. So you should know that nobody here, nobody within the MPTP, and I'm sure nobody at SAG or nobody at the WGA took any of this lightly. But we've got a lot of work to do. There are a handful of complicated issues. We're super committed to getting to an agreement as soon as possible, one that's equitable, and one that enables the industry and everybody in it to move forward into the future.