Helena Wang

They're leaving more scope to outperform expectations as the year progresses.

So I do believe there is a little bit of wiggle room in terms of margin for years to come.

Well, OK, I would like to point out that financially they're very strong, so they don't necessarily need a merger to survive.

So it's not necessarily a lifeline for them.

So from the Netflix point of view, it's more of a power move for them to aiming at total dominance.

So all power move sort of needs to come with a sacrifice.

So the fact that they are making the decision to expose themselves with such risk means they are confident enough with their growth, with their financials to make such bold decisions.

Well, I guess right now, because they already don't have a competitor in terms of the streaming business, they already have a very strong content slate.

The 2025, we got all the Squid Game, Stranger Things, Wednesday.

So all these are very, very popular.

And 2026 lineup is also very strong.

So they have this incredible ability to have the amazing content with more to come and still have very impressive traditional financial metrics.

And if you realize their bottom line growth is much higher than the top line growth, this is because their business itself is a very mature efficiency machine.

Because if you think about it, their cost for making the content available is somewhat fixed.

We get 2 million people watching or 200 million people watching it.

So the more engagement they get, every new dollar that comes in flow almost straight to the bottom line.

So this is why they already have very outstanding profitability.

So they can afford to expand more aggressively into a bigger total dominance.

Well, I think it would still be the HBO Max because HBO Max right now is still considered the fourth biggest streaming company.

So with HBO Max together, adding up together, they would essentially have more than 415 billion subscribers.