Greg Peters: Sure. We think of this as a continuation of what we’ve generally done for a long period of time, which is, think about how do we optimize the plan structure, the pricing, the features that we have with really two goals in mind. One goal is, we want to give consumers access across a wide range of price points so that more people around the world can enjoy the great stories that Bela’s team is doing. That means the appropriate spread of prices and the appropriate corresponding futures, including ads, no ads, video quality, number of simultaneous streams and we’ll seek to actually add to that list of features over a period of time. And the second big goal that we’ve got and think about this is optimizing long-term revenue, and that includes a bunch of factors that you might expect.
It’s sign up conversion, it’s plan take rate, engagement, retention. And just as we evolve from a single plan years ago and have adjusted our offering over time. This latest move reflects what we think will best achieve those goals in the countries that we launched it in U.S., UK and Canada. And I think it’s also important to note that from that perspective, accessibility and affordability, we think the entry prices that we have right now in those countries are $6.99 in the United States, GBP4.99 in the U.K., and CAD5.99 in Canada represent an amazing entertainment value, and those are attracting a healthy share of sign-ups. So, in terms of the specific effects that you’re talking about, it’s pretty much what you would expect, which is when we drop that basic tier, folks that would have signed up for that tier essentially sort into two tiers.
They either take the ads plan, which is that really low attractive entry level price or they move into the standard plan. And so we see that sorting. In terms of what we would expect, I mean we are rolling this out in an iterative fashion across countries, and that allows us to understand the impacts and not be surprised. So I think things are generally going as we expect in that regard.
Jessica Reif Ehrlich: So one last question and then I’ll move on to advertising. But for your new members or new subs from the password sharing, are there any noticeable differences in churn?
Greg Peters: Well, I would say, as I mentioned before, the way to think about these, the way that we’re seeing them in terms of the members that are signing up, borrowers are spinning off right now. I would characterize them as well qualified. They are folks that have watched Netflix for a long period of time. They know how Netflix works. So they’re behaving in terms of retention characteristics, sharing characteristics like more higher tenure subscribers, which is good. That means better retention.
Jessica Reif Ehrlich: Right.
Spencer Neumann: And Jessica, maybe just a number of the questions you were asking is kind of getting in a little bit of — I think you mentioned ARPU and we call it ARM or average revenue per member, but what are we kind of seeing in the numbers? And how does that play out with — as you think about the move out of the basic ad-free tier as you mentioned in Canada and a couple of other countries as of today and also as we build our ads. So maybe if I can just for a second talk that through because you can get a little complicated. But if you think about the drivers of average revenue per member, starting with the revenue drivers that we spoke about a moment ago, you can see our FX neutral, ARM is — it was down 1%, FX neutral in Q2 and we expect similar in Q3, flat to slightly down.
