Julia Alexander

It's a good question.

And I'm sure we'll get into our favorite conversation going back to Randall Stevenson and AT&T back in 2016, 10 years ago.

But why Netflix wants to buy it is not because Ted Sarandos or Greg Peters, who are co-CEOs, truly wanted to have to do this.

They have to do it.

They're a modern media company.

They have scaled to the point that they're going to scale based on their own capabilities.

And so in order to

to further engagement in order to increase retention, which is people not canceling the service, which has become the most important number to them as they kind of hit saturation in these big territories.

They need big IP.

They need big movies.

They need a big library.

And Warner Brothers Discovery is up for sale.

Yeah.

So I think you and a lot of Wall Street analysts feel very similarly.

That's why Netflix's stock has kind of been down ever since the acquisition process was started.

It's a really complicated answer.

And I think that you have to look at two worlds that are happening at once.

So in order to set where Netflix is currently and why the WBD deal is so appealing to them now, Netflix every six months puts out something called the engagement report.

They basically look at

how people are watching 99 of the content on netflix that equates to about 96 billion hours of content being viewed and what we've seen happen over the last year and a half is a slowdown there's kind of been a stagnation in engagement and so we saw this year the most recent engagement report was released a couple weeks ago there was an increase of two percent overall engagement but that was really only a one percent increase in engagement for the past six months