What s Next for Reed Hastings After Leaving Netflix

Geetha, do you think Reed Hastings stepping down, leaving the board in June makes any difference for this company? Could that be any reason why we have such big bad losses for Netflix here at the Open? I don't think so, Dani. I mean, I think this succession plan, I mean, if you just look across the media landscape, I mean, this is one of those succession stories that has really been executed absolutely flawlessly. You know, he had been planning his succession all along, kind of handed off the reins to Ted Sarandos and Greg Peters. And so we knew this was this was coming. So I really don't think this has much to do with the share price reaction today. I think that is all really just a function of a little bit of the disappointment in terms of the lack of a guidance rate. Did they give us any reason why they thought that the outlook was going to be so bad? I did not get a chance to look through this yet, because I think that that's one of those things that is that's is this I think it could be or it definitely will be because that could are they do you feel there's any sandbagging or anything going on there or that there's real issues? I don't think there's any issues, Sarah. I think it's just more a timing situation that we have going on. So the second quarter guidance was anyway supposed to come in a little bit light. They had already kind of pointed to this in terms of the expenses. So content spending this year, Netflix has flagged would be pretty high. It's actually supposed to go up to almost 20 billion dollars. That's a 10 percent increase versus historically about a six to seven percent increase. So they're really kind of doubling down in terms of content investments. We're seeing them make this big push into live content, into sports, into different verticals, really gaming, video podcasts. So it's a little bit of an offense defense strategy, I would say. They definitely want to deepen their competitive mode. And they're also preparing, mind you, for a much stronger, paramount and Warner Brothers discovery. So they're kind of really taking a look at the lay of the land here. So we we knew going into the quarter that expenses would be elevated. But I think just the just the level and the magnitude of that, of the expense increase in the second quarter probably was, you know, took investors are caught investors by surprise.