Netflix, Inc.

Hello, and welcome to the Netflix Q4 2023 earnings interview. I'm Spencer Wong, VP of Finance, R, and Corporate Development. Joining me today are co-CEOs Ted Sarandos and Greg Peters, and CFO Spence Newman. We do have a few changes to our interview format this quarter. First, we are live streaming this over YouTube, so hopefully it's working. I guess we'll find out shortly enough. Second, we've collected questions from the analyst community, and I'll be reading those questions and moderating the interviewer. in the interview. As a reminder, we'll be making poor looking statements and actual results may vary. With that, let's dive first into the first set of questions, which is about our new partnership with WWE that we announced this morning. For Ted, the first question comes from Dan Salmon. Can you please expand on the decision to acquire WWE Raw rights? Is the WWE audience one that is underpenetrated for Netflix today. And can you expand on the economics or the cost of the deal, please?

Thanks, Dan. If I could raise a single eyebrow one at a time, I would lean into the camera with the single eyebrow and do my best, Dwayne. But I'm going to say instead that we are thrilled to bring this WWE live programming to our members around the world. WWE Raw is sports entertainment. which is right in the sweet spot of our sports business, which is the drama of sport. This is 52 weeks of live programming every year. It feeds our desire to expand our live event programming. But most importantly, fans love it. For decades, the WWE has grown this multi-generational fan base that we believe we could serve and we can grow. We believe that WWE has been historically under-distributed outside of North America, and this is a global deal, so we can help them and they can help us build that fandom around the world. And I should add that this should also add some fuel to our new and growing ad business. We're very excited about this deal.

And Ted, did you wanna comment on the economics or the cost of the deal?