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Netflix (NASDAQ: NFLX)
Q4 2023 Earnings Call
Jan 23, 2024, 4:45 p.m. ET
Key Discussion Points
- Insights from Executives
- Questions from Analysts
- Participant Highlights
Leadership Insights:
Spencer Wang
Welcome to the Netflix Q4 2023 earnings conversation. I’m Spencer Wang, VP of finance, IR, and corporate development. Today’s lineup features our co-CEOs, Ted Sarandos and Greg Peters, along with CFO, Spence Neumann. This quarter, we’re shaking things up a bit with a live YouTube stream and curated questions from industry analysts to guide the conversation. Let’s dive in.
Exploring the WWE Partnership
First, a quick reminder about our forward-looking statements. Now, let’s address the first set of inquiries related to our recent WWE partnership announcement. Addressing a query from Dan Salmon, Ted Sarandos, our Co-CEO, expressed his excitement about bringing WWE Raw to our global member base and emphasized the cultural appeal and underexplored international potential of WWE content. Along with expanding our live event offerings, this agreement is anticipated to bolster our advertising initiatives.
The conversation flowed into probing the financial intricacies of the WWE partnership. However, as customary, Ted declined to provide specific details, emphasizing the long-term value Netflix sees in this collaboration.
Next, Rich Greenfield from LightShed extended commendations for a strong quarter, followed by an inquiry about how the WWE deal aligns with Netflix’s $17 billion annual programming investment. Ted elucidated that this venture is accommodated within the existing programming budget and highlighted opportunities to develop complementary content akin to Drive to Survive.
Expansion into Sports
A theme arose regarding Netflix’s broader sports strategy, with inquiries from Ben Swinburne and Michael Nathanson regarding potential pursuits of global sports rights like NBA or UFC. Ted clarified that the WWE partnership leverages the storytelling aspect of sports entertainment, a strategic fit with Netflix’s core objectives. He sought to differentiate this move from a broader shift in sports strategy, emphasizing the exclusive appeal and economic advantages of the WWE deal.