Johnson Controls FY 1Q15 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Aftermarket battery demand back to normal

“Our aftermarket battery demand, it’s really back to normal not a new normal. Last year we had some real issues with volumes and this year we are really seeing things come back to what I would consider normal. ”

Interesting trends in the Chinese auto markets

“In China, we are kind of benefiting from a few trends. One, SUV market is really starting to take off and if you just look at 2014 as a proxy for the quarter, SUV volumes in China were up 32%…the Chinese owned brands are losing share so what you are seeing is the VWs, the GMs and the alike, Ford, gaining share at the expense of the Chinese owned brand.”

BB&T 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Acquiring susquehanna

“We did announce an agreement to acquire Susquehanna Bancshares, as you probably know, very excited about this. It’s a significant merger, $18.6 billion in assets, $13.6 billion in deposits for 245 retail branches. I’ve had the opportunity over the last several weeks to visit a lot of their branches, visit a lot of their clients, a lot of their community leaders. I’ll tell you, it’s a really great company, strong culture, strong community focus, looks just like BB&T.”

Very low NPAs

“NPAs as a percentage of total assets remained at the lowest level since 2007 at 42 basis points.”

If the Fed takes the word “patience” out LIBOR will start to move

“The Fed impact will impact us more than what we are seeing on the long end of the curve. As Kelly said, we are still expecting the Fed to increase middle of the year. And if Fed with their announcement in March takes the word patience out, you’re going to see LIBOR rates start to increase in the second quarter. What you’re going to see that starting to flow through in the net interest income in the second quarter just by LIBOR rates increasing.”

The 10 year affects the mortgage market

“So I know lot of people focus on a 10-year, but the 10-year really just impacts more the mortgage market little bit in prepayments from that perspective. When we ran our models, we basically used current rates and what was in the forward curve and all that, and I will say that net interest income will be challenging to grow. But I still think depending how we grow our loans and our funding mix continues to improve. I think we still have a good chance of actually growing NII little bit.”

Verizon 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Network excellence is the hallmark of our Verizon brand

“The foundation of our continued success is network excellence, which is the hallmark of the Verizon brand. We believe that steady and consistent network and platform investments provide the foundation for innovative products and services, which will fuel profitable growth.”

Added 5.5m subs during the year

“Retail postpaid net adds totaled 5.5 million for the year, with 2 million coming in a highly competitive fourth quarter that featured heavy promotional activity. Postpaid activations, gross additions, upgrades and net adds all grew by double-digit percentages in 2014.”

half a billion in IoT revenue

“New revenue streams from the Internet of Things and telematics are beginning to emerge. In 2014, these revenues totaled about $585 million, with growth of more than 45%. There are countless innovative technology solutions being developed in the Internet of Things ecosystem across multiple industries.”

Rolling out XLTE

“Our investments are focused on adding capacity to optimize our 4G LTE network, primarily by increasing network density. We are deploying existing AWS spectrum in addition to utilizing small cell technology in building solutions and distributed antenna systems.

As I am sure you’ve seen from our advertising, we now have deployed AWS or XLTE, as we have branded it in more than 400 markets, effectively doubling our existing capacity.”

Unprecedented device activations in Q4

“Total postpaid device activations in the fourth quarter were unprecedented, totaling 15.3 million, up nearly 34% over last year. More than 13 million were phones, driven by iconic smartphone launches from both Apple and Samsung…To give some historical perspective, these phone activations were 1.5 million higher than the fourth quarter of 2012, which at that time was a record high because it was the first time of 4G iPhone or our free 3G iPhone was available on our network.”

Almost 10% of verizon’s base upgraded to a new phone last year

“In total about 9.8% of our retail postpaid base upgraded to a new device in the fourth quarter. As you would expect, a vast majority of these upgrades were 4G smartphones.”

So much hype around competition and we still did well

“I think, it’s important just to set the stage here. All the hype around 2014 around price competition and the intensity of the competition, and just look at what Verizon delivered during all that period of time.”

Google is just another competitor as far as we’re concerned

“I guess what I would say right off the bat, number one, is this is not just another very prime example of the intensity in the competition around this industry. The availability of the open networks and access to the networks and this is why another reason why this industry does not need to be regulated.

I would also say on this one is, if you look at Google, they’ve entered the fiber, they’ve done other initiatives. Their whole purpose is to increase speeds so that people can do more search. What I would say is we’ll have to wait to see how they execute on the MVNO but listen MVNOs or resellers or people leasing the network from carriers has been around for 15 years. It’s a complex issue. You have to deal directly with the consumer. There is a whole infrastructure that’s needed to do that.

So I think this is another example of where Google is going to enter the market under a platform basis to do what they want to do. And it’s just another competitor as we look at it.”

This is not an issue of internet rules, it’s about reclassifying broadband

“Well, that’s a great question because I personally have been misquoted, both in the press and in Congress on what I’ve said. So this is a good question for me to clear this up. So first of all, this is not of an issue about Internet rules. It’s about an issue of FCC reclassifying Broadband to Title II service. And this will absolutely affect us and the industry on long-term investment in our networks.”

Title II will cause us to invest less in the networks

“And that can be seen factually as to what happened in the rest of the world where you have high regulation, the networks are not invested in, there are not good quality of service networks and that’s where this will put us. guess, I would emphasize also that the approach in whole or in part on Title II is an extreme and risky path that will jeopardize our investment and the development of innovation in Broadband Internet and related services.”

US Bancorp 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Economy isn’t ready to push loan growth quite yet

“tempting as it might be to tell you guys we’re going to move to 1.5% to 2% linked quarter or 8% to 10% year-over-year, the economy doesn’t warrant that yet and we’re going to continue to take market share on the pricing benefits and the quality benefits we’ve been using for the last five to seven years, and as the economy slowly improves so will our loan growth but not remarkably, and therefore in a few years you’ll be satisfied that we have remarkably high credit quality and a continued stability on what we promised through the entire cycle.”

We’re expecting hte fed to raise rates mid year, but it’s not going to break the company if they don’t

“I think like a lot of our peers, we’ve adopted the Fed’s interest-rate scenario which starts to move up in the middle of the year. If that happens, that’s awesome. But if it doesn’t, we’re not entirely related. It’s not going to make or break this Company on whether interest rates move up. We’re going to control a lot of other things”

Hold discretionary investments back a bit until the fed raises rates. Invest in operations

“So the first half of ’15, given Fed’s interest-rate scenario, it will a lot like all of ’14 where we’ll continue to invest where we have to, we’ll watch the discretionary investments and keep them perhaps, defer them a bit until we can see a stronger economy, we’ll add the compliance, operating risk areas, audit areas where we think we continue to need to make sure we’re at the right level of support, and then when interest rates hit, we’re ready to pop and move on to some of these more discretionary investments.”

Short end is what impacts banks

“The short answer, John, is no. The long rate is less impactful to us. We’re most impactful at the very short end and if you think about the middle then two to three years is where we have a lot of impact. We don’t have a lot of assets in our book that are at the 10 year and beyond mark, so that’s less impactful. Again the short end is the most impactful to us, both in net interest income as well as fee income because of the way we’re using our money funds.”

Stability of our credit portfolio is the best ever

“the stability of our credit portfolio right now is the strongest I’ve ever seen. It’s just extremely all the loaners are performing well.”

Big deal that mortgage is growing again y/y

“We should have had the applause because that is a long anticipated moment where we’re starting to grow mortgage again on a year-over-year basis. That is a big number, Eric, so if you do the math, you’ll see that it’s more than enough to accomplish that.”

[analyst comment] your bank is awesome–Richard Bove – Rafferty Capital Markets

“I got to ask as I think 30,000 feet high for a second, when I look at your bank, I can see absolutely nothing wrong. In my view it’s about as perfect as a company can get in this industry.”

Rates rising is our chance to show what we’ve got

“The next opportunity for us to perform is when the rates pick up because the markets picked up and to show that the Bank is repositioned now to be as strong as it ever was when it was on defense and be better than anyone else on offense”

Not going to try to reconcile low 10 year with strong growth

“I say that because the Fed and the Fed equivalent across the globe, they’ve done some behaviors that are certainly not [indiscernible] and they are not things that we all learned in school. To the extent that they are being motivated by I think non-financial, more political activities and more financial data that might be backwards looking not forward-looking, I’m not going to be able to correlate those two for you, and I don’t think our customers are sitting there thinking that way either.”

60-70% of mortgages are new purchase

“The third quarter was 70-30 new, and because the rate is coming down a bit, it’s closer to 60-40, 62-38. So it’s coming down a little bit more high on the refinancing side and we are also starting the year strong that way because of the low rate environment. So I would expect it to be somewhere between that 60% and 70% new.”

Efficiency ratio falls because revenue grows

“let’s talk about the efficiency ratio, it’s what everybody looks at, it’s a fraction, right, it’s a quotient. So one of the reasons I think we can do well is because our revenue grows. I mean there is a very basic fact, like you all know, that if you grow revenues faster than expenses, your efficiency ratio comes down. That’s a fact.”

We’ve never brought in a third party to tell us where to cut expenses

“So in other words we’ve never brought in an outside party to look at our Company and tell us how to run it or tell us how to cut expenses, where you impose on employees some oversight if they didn’t do themselves, because number one, it’s intrusive, number two it’s really unnerving because if I have to cut 10 people out of a room of a 100, the rest 90 don’t know if they’re safe or they’re in the next group to fall.”

Unitedhealth 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Medicaid great, medicare good, commercial and international tough

“his past year, we experienced outstanding growth in Medicaid and better than expected performance across our Medicare portfolio, balanced off by challenges in the commercial and international markets as we entered the year.”

Optum hits some secular trends

“The secular trends toward more complex and expensive specialty medications play directly to Optum’s strength in synchronizing and integrating medical and pharmacy benefits, providing uniquely personalized service. Optum is advancing this approach with UnitedHealthcare commercial customers in 2015 and expects to see further market interest in its capabilities in 2016.”

Little erosion in small business market from exchanges

“’14 we were minor players in the exchange so we don’t have a lot of information. I will tell you that I think it’s well within that range that we have talked about over the last couple of years a few percent of that small group market eroding into the exchanges at least at this point. I think the growth in the exchanges both in ’14 and in ’15 are really driven by the uninsured and that expansion through the subsidy. So we have not seen a significant erosion of our small group business,”

Not seeing any increase in utilization

“with December behind us and the majority of January behind us as well, we’re not seeing any indication or evidence of an increase in utilization. So we feel very comfortable with our forward outlook, commercial cost trend for 2015 is 6% plus or minus 50 basis points.”

The stars are important, but not so much from a marketing point of view

“I’d like to make it clear that we believe stars matters and that we’re focused on improving our performance in stars and I think we have been very consistent on that theme. It’s not clear that, that has had really an impact with respect to how the product is marketed or acquired in markets, but we do believe that it is important — overtime obviously important from a financial point of view, important in terms of our relationship with CMS who basically established those performance guideline. “

TD Ameritrade FY 1Q15 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

RIAs growing much faster than wirehouse

“the move towards the independent channel shows no sign of slowing or abating. In the last five years, asset growth for RIAs has outpaced wirehouses by more than two to one.”

Increased volatility drives increased interest

“while typically a slower trading period, investors were highly engaged in the market as volatility spiked and the S&P 500 hit record highs in the December quarter. We expect this volatility to sustain as the VIX is now hovering around 20, nearly double the six month average of 12 to 13.”

Clients holding 14% cash on average

“Client cash balances ended the quarter at 14.4% as our clients remained invested in the markets. Given that the mix of our client assets are now essentially 50-50 between the retail and institutional, the expected firm-wide cash percentage range needs to be reset based on the relative historic portions of cash.”

Retail clients tend to carry more cash than institutions

“retail clients typically carry 19% to 24% in cash and institutional clients typically carry 7% to 12% in cash.”

Manage expectations

“You sound like my Board. Every year I tell them that we’re going to be 7% to 11% and they say you’re at 10% to 12% every year and I say yes but this year is going to be harder and we put up those kind of numbers this quarter, so it’s a nice problem to have.”

Retail investors are generally bullish

“retail investors right now are generally bullish. You’ve got volatility and whenever there’s this kind of volatility and noise in the market whether it’s people having financial troubles or big events, people are much more in tune to their investing and their trading. And when you do that in our experience we tend to do well.”

Our clients are engaged and bullish

“I would say it’s really hanging in there. The logins are up regardless of which segment you look at, trades are up and logins are up. So, it’s pretty broad based.

Investor movement index is up in the month of December, and it continues to be bullish. And you’re looking at whether it’s margin loans, net buying, everything continues to say our client base is pretty A, engaged and B relatively bullish.

I think again as I think about it all – where else would you rather be than U.S. equities, right now. And if you are nervous person then you’re going to be in U.S. treasuries.”

Clients are heavy into tech and growth and have moved into oil too

“Our client base – we’ll have an orientation towards the tech and growth stocks, but also there’s been a huge – they tend to be contrarians and they moved into the oil and gas stocks with the big dividend yields and lots of capital to do dividends and buyback shares, they moved into them pretty good.”

ETF usage peaked at 12% of assets a few years ago

“t peaked a few years ago at about 12%. It’s sitting in that probably closer to 10% range now. So I would say it’s relatively flat. Certainly it add a big move and zero to 10 to 12, but it is going to settle into that low double digit range for us.”

Regions Financial 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Let me talk about energy

“I want to talk briefly about the recent declines in oil prices and its impact on our energy lending portfolio. We’re closely monitoring the price declines for direct and indirect impacts to our overall loan portfolio quality.
We’ve been doing this a long time
Our bank has extensive energy lending expertise dating back multiple decades and through numerous energy cycles. Our core exploration and production loans at present are well secured and provide a collateral cushion to withstand price declines.
We’re keeping a close eye, but not seeing any material weakness
In terms of broader impact, we have been monitoring markets such as Texas and the Gulf Coast for signs of weakness in employment and housing. However, we’re not seeing any material weakness past this point in time.

Continue to expect an increase in short term rates

“As we look ahead, we expect improved growth in the U.S. economy in 2015. Low energy prices should provide a tailwind to consumer spending and the manufacturing sector. However, an uncertain global growth environment does pose some risk. As a result, we continue to expect an increase in short-term rates in the latter part of 2015.

Net interest margin remained pretty stable

“Despite a continuation of low rate environment which exerted pressure on asset yields, both net interest income and net interest margin remained relatively stable with the previous quarter.

Expect mortgage production to be up vs. last year

“Based on what we know today, we expect mortgage production in 2015 to exceed that of 2014.

Expect favorable asset trends to continue but volatility is expected

“based on what we know today, we expect favorable asset quality trends to continue. However at this point of cycle, volatility and certain metrics can be expected.

If the 10 year yield stays here we would expect margin pressure

“with rates at current levels, the net interest margin would experience gradual pressure over the year.
For example, if the ten year treasury yield would remain in the 175% to 2% range throughout 2015, we would expect 10 to 12 basis points of margin pressure.

We still think the Fed is raising rates mid year

“ if you look at where we think the Fed’s going to be towards the middle of the year, we think you’ll start seeing some pressure to increase short term rates, and so we haven’t abandoned that, what we wanted to try to do is put some sensitivities and some extent that that does not happen.

Customers have a desire to borrow online

“all the things we’ve discovered through some of the product innovation we’ve had over the two last two or three years is that the desire for customers to also have the ability to borrow money online and also borrow money at point of sale and so we are introducing a number of new online capabilities as well as some partnership capabilities we have on a sale.
That’s an activity that we’ll be making announcements on as the year progresses and it’s just a way to extend our brand further into market places that we are as dominant today

Third party costs are easy to get rid of

“we think we can get that down and third parties are one of the easiest — third party expenditures are one of the easier ones to deal with because you don’t have to sign a contract.

Loan originations pristine credit quality

“I think what’s going on the books today is some of the most pristine, incredibly we’ve had in a long time

Deep water companies have longer to play out

“marine transportation companies that are serving the deep water, we think that those companies are operating in an environment that has a much longer to play out.

Small number of customers, good experience, good liquidity, good shape

“A lot of it has to do with where the price ultimately bottoms out and then the length of time that it will stay there, but based upon again good liquidity, good experience amongst our management teams, access to different forms of capital and just the credit profile and small number of customers that we have, we say, we feel pretty good about our exposure today.

Lower rates help refianance, but hurt servicing business

“We could see — we could see an opportunity for refinance activity helping our mortgage business, but also that negatively impacts us on the mortgage services rights.
So we have a little bit of a built in economic hedge to some degree there. We need to still see how that plays out over the course of the year.

Energy book is 41% hedged through 2015 and 17% through ‘16

“About 41% through 2015 and an additional 17% I think through 2016.

Having all your key processes in place to make acquisitions is important

“I think ensuring that you have all of your key processes in order to participate in acquisitions is important. BSA/AML has been imported to our country for a long time. It will continue to get the time and attention and it’s incumbent upon us to have all the controls in place.
We invest an awful lot of time and attention in ensuring that and we feel like we have a very robust program relative to BSA/AML and — but that mean we can’t stop here. We have to continue to invest and continue to be diligent in terms of those processes, but we think we have a solid program today.

AMD 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha


“In my 100 days as AMD’s CEO, I’ve had the opportunity to spend significant time with our customers, partners and employees. The consistent theme is that AMD is at our best when we are delivering differentiated technology and innovation to our customers.

Have to stabilize PC

“First, we see a path to reversing the declines in our PC business…We plan to introduce a strong 2015 product portfolio, punctuated by the launch of Carrizo in the second quarter. Consumer and commercial design win momentum for Carrizo continue to gain momentum because it will deliver the largest ever generational leap in performance per watt for our mainstream APUs.

Increase R&D in enterprise, embedded and semi-custom

“Second, we will increase our R&D investments in enterprise, embedded and semi-custom. AMD is the only company in the industry that can offer a full continuum of high-performance standard and custom solutions

Need to normalize the business in the near term

“In the near term we will take significant steps to normalize our business as we sharpen our focus on our key priorities of building great products, deepening our customer relationships, and simplifying our business

How we win back server market share

“So there’s no secret that we’ve lost a lot of market share in the server business. But if you look at fundamentally what’s important to those server customers, it is about knowledge of the enterprise, it is about high performance, you know, compute capability, reliability, all the system capability. And those are things that AMD can, you know, is uniquely very capable of.

x86 is still going to be the majority of the server market for a long time because that’s what applications are written for

“So when we look at ARM and x86, I would say, you know, the majority of the — the majority of the market will still be x86 for quite some time because of all of the legacy applications that exist. ARM offers a new opportunity in some of the dense server markets, and so we continue to look at that as a growth opportunity where new business will grow. So it’s really I would say separate parts of the market.

We really are a technology company

“So, Vivek, I mean if I just take a step back and just talk about what we’re trying to do overall in our strategy, we really are a technology company. It’s all about our IP and our products and what we put in the marketplace.

We’ve gotten hit in CPU and GPU, but It’s a big market though so there is room to add value

“And then on the computing and graphics business, I do believe that we will stabilize this business. I mean the last couple of years have been difficult, some relative to market conditions, some relative to things that we could have done better. But overall it’s 300 million units. That’s a big market. And so most every customer would agree that AMD can add value in that space and we’re focused on making sure that our products really add value to that ecosystem.

We are designing 14nm products

“ we are actively designing a number of products in 14 — the 14-nanometer technology. I think that will be very important for us in — from a competitive standpoint. So it’s an important technology for us.

Console sales have been strong

“relative to historical, I think most people will say that historically the game console shipments in this generation are higher than in the previous generation. And you can come up with all kinds of reasons for that, some of that is sort of the price points that they’ve chosen. I think that certainly helped the holiday season. Some of that is software titles that are available at a given point in time.

Our mobile products are competitive

“ It’s clear that our mobile products are very competitive. We’ve invested heavily in mobile. And you see that with some of the successes that we’ve had. Relative to desktop, mobile and desktop actually share a lot of technology.

Morgan Stanley 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Reducing RWAs in bank to 180B

“From a capital perspective, we remain on track to reduce fixed income and commodities RWAs to $180 billion target by yearend 2015, down from $390 billion in 2011

Total assets are 808B

“Total assets were $808 billion at December 31, down from $815 billion at the end of the third quarter. Deposits as of quarter end were $134 billion, up $9 billion versus Q3, reflecting the on boarding of deposits from city and typical seasonal increases in client cash. Our liquidity reserve at the end of the quarter was $193 billion compared with $190 billion at the end of the third quarter.

Positive outlook driven by central bank support

“our outlook is consistent with data that suggest ongoing growth in the U.S. and the expectation the key market outside the U.S. will benefit from central bank support. Both should benefit client activity level particularly in the sales and trading businesses.

We’ve said we want out of the physical oil trading business

“I mean we are clearly into getting out of the physical oil business. We made that very clear. We had a contract for sale. We couldn’t complete for reasons outside of our control. And we will get out of the physical oil business.

Netflix 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Internet video in every home

“if you step back and you say is Internet video going to be in every home in America in 10 years, that’s a pretty clear yes. So, tons of potential there and we’re very excited about just continuing to improve our service.”

Pushing for global content rights

“we’ve been pushing on that dimension to be able to get the global rights where we don’t have to go country by country across 200 countries but instead can provide to produce our upfront money, guaranteed money and get great access.

Mexico has 65m broadband households

“It’s a market with about 65 million broadband households. So if you take that 5 million number that we talked about and 65 million in terms of addressable, we think we got a lot of room for growth in the market.

Original content has had global appeal

“this has been so encouraging how truly global these brands have been. So when we set out our original program for the beginning, obviously our markets were pretty limited and we were thinking about them mostly as U.S. shows and they would travel like other U.S. shows have. And we’ve been really enthused to see particular in our Western European launches shows like Orange is the New Black and House of Cards, even in later seasons performing tremendous for us because people hadn’t got around to seeing them yet and we could get the brand out there and push it out there.

Learned our lesson on giving full year guidance

“we’ve learned our lessons on giving full year guidance on numbers so we tend not to do tha

Could drive more revenue by pricing for Ultra HD

“if you look ahead two years, four years from now many of the TV’s sold at Best Buy will be Ultra HD and lots of our content will be Ultra HD and it’s a natural match…it’s seems fair and natural for them that just like you pay for difference between standard def and HD that there is a difference between HD and Ultra HD. So that’s the way that we got incremental revenue without making any changes ourselves by just letting the tide come to us.

Original content is very competitive

“On the original side it’s a very competitive market and we’re fortunately positioned ourselves as kind of a premier destination for the biggest and best projects. We don’t say yes to all of them and we see them show up at other places but we do think that we’re the first or second go-to for most of the projects that we’re looking for.

If HBO tries to match NFLX its disruptive to them

“ To the degree that they go really aggressive and match Netflix’s price for HBO, then it’s extremely disruptive to their current ecosystem since the prices are higher than that.

Sling TV is just a start

“It’s a great start. Charlie Ergen has been a great entrepreneur and I think he sees the future that its internet centric and it may not be the perfect offering today, but it’s got $20 a month very attractive pricing and he’s been an incredible entrepreneur in terms of starting with something small like early DISH and building it in to the internet and DVD, so it’s great for him and add some competition in that market, but I don’t think it materially changes the desire to have Netflix with our unique and exclusive shows.

30-40% of viewing on personal devices

“We’ve said personal devices PC, tablet phone that varies by market some sort of 30%-40% of viewing and TV based viewing being the large green share doing being the majority of it. No particular change in those metrics.

Consumers are careful about using mobile devices in non-wifi because of caps

“So we see a lot of tablet and smartphone usage but almost always on WiFi networks and then they’re careful about how they use the cellular networks because of the caps and the fear of [overages].

Internet TV is getting validated

“So the fundamental thesis is getting validated, that’s great. And for us it’s both on competition and its more consumers coming in the market, speeding up because Internet TV is becoming so mainstream.

The internet as a utility is great for NFLX

“what’s been great for Netflix is the general idea of the Internet as a utility open to all not for discriminatory use, as it really take whole…we appear to be on the edge of an acting Title II and generally codifying the idea that at least in the U.S. the Internet is a utility for broad social good and wide open access. And that over time if it happens will significantly insulate us from any accelerating tax for interconnections.

Disney content creates synergy

“we’re excited about the Pay 1 opportunity with Disney because those movies are not just movies. They’re amazing family content that get flexed over and over again forms great loyalty with our subscribers and it’s a real trust brand for parents as well.