Dick Schoof

Yes.

Yeah, that's exactly what it is, Caroline.

And so we saw for the first time that content cost is actually going to be higher than expected.

10% content cost growth is what they're forecasting for 2026.

You comp that to about high single digits in prior years.

And really, I mean, this is just a microcosm of what we're seeing on a much bigger level with the whole $83 billion acquisition of Warner.

They're basically paying for content.

They're basically paying to keep

that engagement level up.

And I think what was a little bit disconcerting from, you know, there was obviously a lot of nuance in the earnings report, but what we saw was, you know, engagement growth.

Yes, you know, it did grow, but by a very modest amount, only about 2% the whole year.

And remember, this was a year where they really had blockbuster content.

I mean, whether it was Stranger Things or Squid Game or

K-pop demon hunters, I mean, this was the year when we should have seen a much bigger uptick in engagement growth, which kind of really then leads us to the fact that this is why they need to buy Warner, and this is why you have that acquisition.

Yeah, regulatory risk definitely is a big one there, Ed.

Definitely much higher for Netflix compared to Paramount, especially as you look at the streaming concentration in some of the European markets.

You just look at the basic size of Netflix subscriber base, it's about 325 million.

Combine that with about 125 million with Warner Brothers, again, you have 450 million.

And in some of those European markets, that risk is really, really high.

It's high even in the United States at about 35%, 40%, but definitely higher there.