Netflix Inc.

Engagement + churn are healthy; pricing changes are tracking well (supports full-year guidance) - Management described overall engagement as driven by quality, quantity, and variety of viewing; the strongest proxy cited was churn. - Q3 churn improved YoY globally and in the U.S., and was better than forecast; guidance confidence reiterated. - Price increases in 2026 “went well”: member response/churn not meaningfully worse vs prior cycles (i.e., evidence that perceived value remains strong). - Outlook: Company plans to deliver full-year guidance (no change indicated).

Region highlights: APAC/LATAM/EMEA stronger; U.S. solid but “not growing as fast as we’d like” - Examples: India view hours up ~24% absolute in Q3, up also on a per-member basis, driving nearly ~20% YoY revenue growth and incremental membership. - Management’s framing: outside the U.S., local titles are materially driving engagement and growth; U.S. has “upside” from moving from very good to great execution of the slate. - Forecast detail: No new quantitative regional guidance given in this transcript, but narrative implies continued regional dispersion in growth drivers.

Content strategy unchanged; focus on execution—new Chief Content Officer Peter Rice to help U.S. slate performance - Core strategy unchanged: Netflix continues to anchor the flywheel with original/exclusive programming plus distribution/monetization advantages (discovery, global scale, etc.). - Peter Rice appointment (CFO/C-suite level “fresh perspective”): expected to improve U.S. execution and talent/production optimization; not a fundamental strategy shift. - U.S. pressure point: other territories have titles that travel globally, while the U.S. needs more “home-run” execution to accelerate global growth effects. - Upcoming slate signals execution intent: Q4 and into 2027 includes high-profile series/films (e.g., *East of Eden*, *The Diplomat S4*, *Wednesday S4*, *Emily in Paris S5*, David Fincher *Cliff Booth* via IMAX, *Narnia*, Bridgerton/Wed on the horizon), plus NFL/MLB/World Cup sports and live event programming.