Netflix Inc (NFLX)

Business Description

Netflix, Inc. is a global entertainment company that provides streaming services to customers in over 190 countries. The company offers a wide variety of TV series, films, and games across multiple genres and languages, allowing members to watch content anytime, anywhere. Netflix focuses on delivering compelling content through both licensed agreements and original productions to attract and retain its growing membership base.

Streaming Services - Offers a subscription-based platform for on-demand streaming of TV series, films, and games. Members can access content across various devices and enjoy features like pausing and resuming playback at their convenience.
DVD-by-Mail (Discontinued) - Previously provided physical DVDs to customers through a mail-based rental service. This segment was discontinued in September 2023 after years of declining contribution to the business.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Reed Hastings	Executive Chairman of the Board	1997	Reed Hastings is the co-founder of Netflix and served as co-CEO and President from 1999 until January 2023. He transitioned to Executive Chairman in January 2023 and has been a director and chairperson since 1997 .
David Hyman	Chief Legal Officer and Secretary	2002	David Hyman is responsible for all legal and public policy matters at Netflix. Before joining Netflix, he practiced law at Morrison & Foerster and Arent Fox. He holds a JD and Bachelor's degrees from the University of Virginia .
Spencer Neumann	Chief Financial Officer	January 2019	Spencer Neumann has been the CFO of Netflix since January 2019. He has extensive experience in finance and strategy, having worked at The Walt Disney Company and private equity firms. He holds a B.A. and an M.B.A. from Harvard University .
Greg Peters	co-Chief Executive Officer and President	January 2023	Greg Peters has been with Netflix since 2008 and became co-CEO and President in January 2023. He has held roles such as COO and Chief Product Officer and was appointed to the Board of Directors in January 2023 .
Ted Sarandos	co-Chief Executive Officer and President	July 2020	Ted Sarandos joined Netflix in 2000 as Chief Content Officer and became co-CEO in July 2020. He played a key role in Netflix's original content production, starting with series like "House of Cards" .

Questions to Ask Management

Given that your share of viewership in your biggest countries is still less than 10% of TV time, what specific strategies are you implementing to significantly increase this share, and how do you plan to manage the risk of overextending with initiatives like ads, games, and live events?
You mentioned no changes to your capital allocation policy despite recent tactical moves like upsizing your revolver to $3 billion and raising $1.8 billion of investment-grade debt. Can you elaborate on how these actions align with your priorities of profitable growth and balance sheet flexibility, and under what circumstances might you consider altering your capital allocation, such as initiating a dividend or increasing share repurchases?
The first half of this year saw a lumpier content lineup due to the work stoppage impacting both series and films, particularly in UCAN. How confident are you that your content slate will fully recover by 2025, and what measures are you taking to mitigate any potential lingering effects on content delivery and subscriber engagement?
With the expansion of your advertising-supported tier, you've noted significant progress in membership growth but acknowledge substantial work ahead to improve monetization and advertiser capabilities. What are the major challenges you face in scaling your ad business, and how do you plan to address them to ensure it becomes a significant revenue contributor in the coming years?
As competitors leverage bundled offerings to drive growth, how do you assess the risk of consumers gravitating towards these bundles over standalone services like yours, and what strategies are you employing to maintain competitiveness and prevent potential subscriber churn in light of this industry trend?

Program Details	Program 1	Program 2
Approval Date	March 2021	September 2023
End Date/Duration	No expiration date	No expiration date
Total additional amount	$5 billion	$10 billion
Remaining authorization	$0 (allocated)	$3.1 billion
Details	General repurchase program	General repurchase program

Note: The total remaining authorization amount for all programs combined is $3.1 billion as of September 30, 2024. This amount is allocated to the newest program first, as per the instructions.

Debt Maturity Schedule

Year	Amount Due (in millions)	Debt Type	Interest Rate	% of Total Debt
2025	$1,787	5.875%, 3.000%, 3.625% Notes	5.875%, 3.000%, 3.625%	11.5% = (1,787 / 15,582.8) * 100
2026	$1,000	4.375% Senior Notes	4.375%	6.4% = (1,000 / 15,582.8) * 100
2027	$1,346	3.625% Senior Notes	3.625%	8.6% = (1,346 / 15,582.8) * 100
2028	$3,500	4.875%, 5.875% Notes	4.875%, 5.875%	22.5% = (3,500 / 15,582.8) * 100
2029	$3,879	4.625%, 6.375%, 3.875%, 5.375% Notes	4.625%, 6.375%, 3.875%, 5.375%	24.9% = (3,879 / 15,582.8) * 100
2030	$2,139	3.625%, 4.875% Notes	3.625%, 4.875%	13.7% = (2,139 / 15,582.8) * 100
2034	$1,000	4.900% Senior Notes	4.900%	6.4% = (1,000 / 15,582.8) * 100
2054	$800	5.400% Senior Notes	5.400%	5.1% = (800 / 15,582.8) * 100

Competitors

Competitors mentioned in the company's latest 10K filing.

Traditional providers of entertainment video, including broadcasters and cable network operators .
Internet-based e-commerce or entertainment video providers .
Streaming entertainment providers, including those that provide pirated content .
Video gaming providers .
User-generated content platforms .

Auditor

Name	Start Date	End Date	Reason for Change
Ernst & Young LLP	2012	Present	Current auditor