Kristin Southey: Operator?
Operator: Thank you. The next question goes to Brett Feldman of Goldman Sachs. Brett, please go ahead. Your line is open.
Brett Feldman: Hi. Thanks for taking my question. I am going to ask about churn. Naveen, you have shared some interesting anecdotes about different types of subscriber cohorts and how much lower their churn profile can be than the base. Sort, of a two-part question. One, what are the principal churn initiatives you have underway right now? In other words, if investors are going to be walking your KPIs, I would say, in the next year or so, where are we going to see it? Is it mostly going to be something that supports sustained net adds, or is this really about getting a lot more efficiency out of your marketing dollars, if there is a little bit of both. I am curious how you think about that. And then since you are talking about sports, how does sports consumption factor into churn?
In other words, what’s the churn profile of your customer cohorts that you clearly know are coming to Paramount+ for sports versus people who are a little more general entertainment focused? Thanks.
Naveen Chopra: Yes. Hey Brett, it’s Naveen. I will take those, but probably in reverse order. So, first, starting with sports, one of the reasons we like sports on Paramount+ is that those do tend to be some of our highest LTV customers. And that may be a little counterintuitive because some people assume that sports viewers come in during the season and then they disappear. But the reality is sports viewers are not just sports viewers, they like other forms of content, but you got to program it in a smart and thoughtful way. And so that’s where we are able to use a lot of the data that we have collected over the last couple of years to understand what are the types of programming that an NFL viewer or a Champions League viewer is most likely to engage with.
And as long as we can get them to engage with one or two additional titles, as I mentioned earlier, the churn rate drops dramatically, hence the attractive LTVs that we get from those types of subscribers. With respect to the second part of your question, in terms of churn initiatives, it shouldn’t surprise you to hear, it’s multidimensional. It’s first and foremost, about content, making sure that we have the right content for the key audiences that we are focused on, but also timing that content correctly and then programming and promoting it correctly, which is really about figuring out if an audience is starting with Show X, what is the next thing that you want to put in front of them to ensure that you can engage them once a particular series comes to an end.
So, it starts with content, but it is also about getting smarter on the marketing side and then also using bundles and partnerships to further improve the churn dynamics. We have talked in the past about some of the benefits of doing that. So, we are going to be using multiple angles to continue to make improvements on churn. And we have seen a great track record there to-date.
Bob Bakish: But Brett, just to jump in, I think it also goes to the fundamental premise behind our thesis, and that is broad. We talked about Paramount+ as new sports and amount of entertainment. And the fact of the matter is when we look at the data under the covers, we are seeing conjoint analysis, if you will, of sports viewers watching entertainment programming. And to Naveen’s point on efficiency, for example, we probably need to do less for that viewer who is an NFL viewer in the fall and do more for that viewer outside the fall because we can rely on the NFL. That’s an example of fine-tuning our strategy. And really, that also goes to why we are doing Paramount+ with Showtime. Again, that broad product, which we are seeing 40% more titles consumed when Showtime and Paramount+.
