Ted Sarandos: Yeah. No, the thing to keep in mind is that as streaming continues to grow, 37% of TV time now in the U.S. And then we continue to grow our share of streaming in that growing space, even though it’s very, very competitive. Probably best evidence is for nearly every week of this year we’ve had the number one show and the number one film on streaming, which is — so that creates an enormous amount of, to your point, Jessica, of possibilities, but all dependent on building those capabilities. So as we put those things together, there’s an enormous opportunity as eyeballs increasingly move to streaming. And they — or by the way, they’re moving to streaming because this is where the consumer demand is running. This isn’t like we’ve invented something and we’re dragging them in.
Basically, the consumers are long away from this notion of the linear grid dictating what they can watch and where they can watch it and how they can watch it and the demand is on us to deliver on streaming and high quality content that they love. And our ability to monetize it both through pure subscription and through advertising if they choose to do so is really dependent on us having the content that they’re excited about, day-in and day-out, week in and week out and in every country in the world.
Greg Peters: Yeah, I think that’s exactly right. And just the foundation of our attractiveness to advertisers is ultimately our reach, this high level engagement and amazing titles, TV shows and films like Ted mentioned in the top 10 that they want to have their brands next to them.
Jessica Reif Ehrlich: So let’s move on to free cash flow. You had an extraordinary quarter, this second quarter and you said — you talked about the outlook for Q3. Could you just maybe address the underlying dynamics? Talk a little bit about content spend and other investments?
Spencer Neumann: Yeah. Sure. I can take that one, Jessica. I mean what you see in our cash flow forecast, we took it up for 2023 in terms of our expectations. It’s really driven by a few things. One, just higher certainty in our forecast with the success of the early success of the paid sharing rollout. We also had some move in production timing, just the typical ins and outs of the schedule. And then lastly, the impact of the strikes. And so there’s still a pretty wide range of outcomes for where we — where we’re going to ultimately land on cash flow this year given the ongoing strikes, but — and that may also create some lumpiness actually between 2023 and ’24. So still a substantial expected free cash flow in ’24, but some lumpiness between the years.
But more broadly, we’re past that most cash-intensive phase of building out our original programming strategy. So we’ll have some near-term lumpiness. But if we apply a multiyear lens, we expect positive and growing free cash flow trajectory in the years ahead. So that’s generally what you’re seeing. And of course, as part of that just ongoing prudent expense management still growing our expenses but trying to grow slower than revenue in a responsible way that helps us scale healthy.
Jessica Reif Ehrlich: What’s your content spend outlook for the next few years? What is normal post the strikes plural?
