Benjamin Soffer

Benjamin Soffer asked about the latest thoughts on capital allocation for 2026, including potential updates to the shareholder return target given strong free cash flow and a healthy balance sheet. He also inquired about the company's approach to password sharing, specifically the 'carrot' strategy with the Family Plan and other potential tools.

Answer

Will Bardeen, EVP and CFO, stated that the capital allocation strategy remains unchanged, prioritizing high-return organic investments like video, and targeting at least 50% of free cash flow returned to shareholders through dividends and share repurchases. Meredith Kopit Levien, President and CEO, explained that the company is still in a phase of market penetration, viewing password sharing as a future opportunity. The current strategy is the Family Plan, which drives penetration, is additive to revenue, and improves subscriber engagement and retention.