Julia Alexander

And if you compare that to what was happening in 2020, 2021, and of course, taking into account the pandemic, which really had a lot of effect on viewing on Netflix in a positive way.

What we've also seen Netflix contend with is that the decrease in that engagement is coming from a decrease in the amount of licensed content on the platform.

And so you're seeing Netflix start to realize that although engagement with original content is increasing, it's coming so at the expense of an overall household engagement decreasing.

And so if you look at the other trends within streaming, and this gets to WBD, what people are spending a lot more time on is either, to your point,

YouTube and Instagram, which is coming for TV sets now, TikTok, which will, I'm sure, relaunch their TV app down the line, and also the free ad-supported television services like Tubi, like the Roku channel, like Pluto TV.

We're seeing huge engagement spikes in the U.S.

with those specific services, and so the data tells you something very specific.

People want to watch free content, like obviously, and people want to watch library content, which is what these free ad supported services have.

So if you're Netflix, there's two roads staring you in the face.

One is the user generated content side of the equation, which is what YouTube dominates.

It's what Reels dominates.

It's what TikTok dominates.

And they're trying to figure out they being Netflix.

how to make some of those formats work on its own platform.

And then there's the other side of the equation, which is, can we be eventually down the road a $40 a month premium offering if we have the vast majority of licensed content that people want and original content?

So I think you're seeing them make both bets at the same time.

I think that's part of it.

And if you certainly look at why Netflix could never become HBO, we often forget people in the industry that HBO was always small.

HBO had a small, dedicated base and it benefited from the cable ecosystem, you know, like the greatest capitalist invention in history.

The idea that they could just be a part of a different service or part of a service that people wanted because they also wanted ESPN and ESPN2 and like