EBITDA Improvement and NBA Rights
Q: Can cost improvements help reaccelerate EBITDA and retain NBA rights?
A: Management believes they can strengthen EBITDA through continuous cost improvements, which may enable a more aggressive offer to retain NBA rights. They have dramatically changed the company's financial discipline, focusing on process improvements that will pay dividends over many years. This includes replacing multiple ERP systems and unifying the team under a "one company" mentality.

Churn Reduction and Bundling Benefits
Q: How will bundles affect churn and DTC earnings over time?
A: Churn has decreased dramatically but is still above target; management aims for churn below 3% to achieve a healthy business. Bundling, especially with existing distributors in Latin America and Europe, is a significant helper in reducing churn. These bundles often result in higher ARPU and LTV, improving the value of DTC earnings over time.

Disney-Hulu-Max Bundle Impact
Q: What is the strategy and outlook for the Disney-Hulu-Max bundle?
A: The bundle with Disney+, Hulu, and Max offers a compelling package with the greatest offerings in kids, family, and adult content. Priced attractively, it is expected to have a positive impact on ARPU and subscriber LTV. Management does not see the need to add other services to this bundle at this time.

Advertising Shift to Streaming
Q: Can streaming ads offset linear ad declines soon?
A: While linear ad sales are declining, management sees significant growth in streaming advertising. The combined company's advertising trend improved from down 10% to down 7%, driven by support from streaming ads. They expect a long period of coexistence between linear and streaming ads, with streaming offering CPM benefits and inventory growth.

Company Restructuring and Future Outlook
Q: How will the company look in the next two years?
A: Management has restructured each business for efficiency and growth, focusing on creative excellence and real free cash flow. They have invested in great content and talent, with HBO having possibly its best year ever. They believe the business will look very different in 2–3 years, and much better for consumers.

International Expansion and Partnerships
Q: What are the plans for international growth?
A: The company sees great potential outside the U.S., emphasizing that two-thirds of a mature subscription business comes from international markets. They have local content and relationships in every market and are working with distributors to offer products through broadband, capturing younger consumers.

Marketing Strategy for Bundles
Q: How will marketing work for the Disney-Hulu-Max bundle?
A: Both parties will continue to market their offerings individually, but the bundle will be prominently positioned in the purchase flows of Max, Hulu, and Disney+. There will be a significant amount of marketing support from both parties, including on-air promotions and performance marketing.

Potential Acquisition of Paramount+ Content
Q: Are you interested in acquiring Paramount+ content?
A: Management is always looking for good content to enhance their offering. They have previously structured deals for content like "South Park," bought NASCAR for the summer, and have an output deal with A24. They are open to opportunities that provide a better consumer experience.

Enhancing Ad Tech on Linear Networks
Q: How are you improving ad tech on linear networks?
A: Management is beginning to match analytics and data on linear networks with digital platforms through targeted advertising and dynamic ad insertion within linear streams. They see additional opportunities with the shift in distribution landscape and the greater share of virtual MVPDs.