Netflix at Goldman Sachs Conference Notes

posted in: Notes | 0

David Wells – CFO

Content spend going to continue to grow

“it took us about a decade to get to where we are, over 100 million global subscribers, so we’re super excited about the potential for what the next decade might hold for us. We’ve got about 5 billion to 6 billion content spend growing beyond that, Ted I think mentioned $7 billion number lately, that’s going to continue to grow if we’re able to continue to grow our global subscriber base like we think we can.”

There is diminishing marginal return to content spend at some point

“What I think that there is generally strong belief that there is diminishing marginal returns to content spend. And certainly, at some point, that has to become true whether you believe that there is a growing body, a library of content that’s already been paid for, or whether you feel like there is so much content on the site you’re starting to cannibalize your own content and there is sort of no point to adding more.”