Netflix, Inc. (NFLX)’s Fourth Quarter 2014 Earnings Interview Transcript

Reed Hastings, CEO, Netflix, Inc.

And Rich, the key difference about the roll is how to roll a red box is very new at least centric, so it is vulnerable to the pay per view substitution, whereas a broad selection renter like yourself on a stable business is much less sensitive to that.

The last question on Comcast – Time Warner, we’ve been vocal on the issues that would be presented to the US Society. If there is one ISP that initially would be 40% of broadband households and as DSL fades, pretty quickly would be over 50% of US households, we think that is a tremendous amount of power in one company so we think it would be a wise policy for the US to block that merger, so we’ve been consistent on that. Whether it happens or not, we don’t really have any direct sense. All we can do is advocate for what we think is great policy and see what happens.

Richard Greenfield, BTIG

Do you agree with the FCC move in what is broadband definition of the 25 meg? Does that makes sense to you?

Reed Hastings, CEO, Netflix, Inc. (NASDAQ:NFLX)

Yeah absolutely. Once you got an UltraHD video stream, that’s 15mb just a single stream, and you’re going to want video conferencing, you’re going to want online learning, you’re going to want all kinds of different applications, monitoring of your home, these kinds of things on video. So, 25mb is a kind of baseline for the next five years as opposed to past five years.

So with that, let me thank everyone for joining us on this call and thanks to Rich and Mark for conducting the interview. Thank you all.