Netflix, Inc. (NASDAQ:NFLX) Q1 2019 Earnings Conference Call Transcript
Apr 16, 2019 • 06:00 pm ET
Good afternoon, and welcome to Netflix Q1 2019 Earnings Interview. I'm Spencer Wang, VP of IR and Corporate Development. Joining me today are CEO, Reed Hastings; CFO, Spence Neumann; Chief Content Officer, Ted Sarandos; and Chief Product Officer, Greg Peters. Our interviewer this quarter is Eric Sheridan from UBS. As a reminder, we will be making forward-looking statements, natural results may vary.
With that, let me turn it over to Eric for the first question.
Thank you, Spencer. Reed, I'd love to start with you, now that we're three months into 2019 against your broader goals for what you're expecting for the business in 2019, what are the key messages you want to share with investors on how the first three months of the year went?
Well, we put in the earnings letter or weekly net ads and it's just phenomenal how steady and smooth and up into the right that is to start off the year with over 9.5 million net additions, it's a phenomenal start, so steady progress, basically the same as many prior quarters cranking away on amazing content, amazing service and steady growth around the world.
Maybe sticking with that theme on the subscriber front, we'd love to understand some of what you saw internationally in subscriber strength. There were some particular pieces of content that seemed to resonate globally on an individual and on a worldwide basis, so I'd love to ask both from a content perspective and a subscriber growth perspective, maybe, to Ted and Greg how you're thinking about the subscriber performance, especially internationally in Q1?
Well, the one thing that was good about in terms of the content connection is the things that worked best that we call that in the letter are things that worked around the world, which was really fantastic. And then we had some great international breakouts where they really helped drive excitement in -- by the way of example, Kingdom in Korea that did phenomenal and get watched and it's getting watched all over the world and throughout the region. So, yeah, we think we've been able to work on a very local basis and very global basis with the content this year, this quarter.
And then from the product perspective, yeah, the basic model that we've seen and consistently across pretty much all the markets that we operate in is, as we launch our service, we get a chance to learn from our members, they tell us what content we incrementally need to provide to them, we do better job at that, how we modify the product experience, what we need to add from a payments perspective, from a partners perspective, and we're seeing that basically in all the markets that we operate in the world. And so, the longer we've been in their territory like Europe, it's a great example, we've got a lot of stuff dialed in and consumers are really loving us and that's leading to a great accelerating growth.
Ted, maybe following up