It's a situation where after our stock
go down, market open. Stock go up. Good subscriber numbers concerning
guidance, which is more important for you, Laura.
I think the subscriber numbers in focus in both periods.
So they over deliver, they added 8 million subscribers.
That was about twice the consensus. But then they had a very anemic
subscriber growth number for the third quarter, and they talked about a tougher
second half. So the answer is subscribers matter a
lot, but not that subscribers overall. And also the location of the subscribers
is sort of suboptimal. They're adding subscribers and the
lowest RPU, or what they call ARM, average revenue per user.
And so that's actually Wall Street doesn't like that either.
And the biggest, biggest problem is they're going to start stop giving us
subscriber guidance and actually ARPU guidance in the first quarter of next
year. And they just want to talk about
revenue.

And that's a really big problem because it's going to add volatility to the stock where the subscribers are fine. So interesting as well as they talked about strength in Asia Pacific. And then in terms or context of the guidance like currency impacts, particularly in Argentina, if you're covering this stock, where do you want to see subscriber growth? $16 are pews in America. You want to see them all there because it's like two X, they pay like twice as much in America compared to LatAm or. Okay. So you want more expensive money being taken in from the more expensive clientele. But ultimately, are they going to get out of the law? And we saturated. We're still trying to discern which streaming service I want to be using and which ones should be merging. Yeah. Well, and I really like their I think the reason their churn is falling like an American and they're saturated, as you say, is like I think when they do these like fights and these like roasts

and there's like exclusively programming. It keeps people paying for the next month because they're they, they really market these things, these exclusive live events. So I really like, like, I think their video game and advertise to advertise very troubled video games trouble. But I think light is a really interesting genre for Netflix to lower churn. Okay. So they need to be investing basically because that takes a Herculean effort from a technological perspective, right? Yeah. And they're paying for like NFL games. So they're joining the arms race in really expensive live sports programming. So that isn't great for your content budget. You know, look ahead.

Netflix's Mojo Is Back

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