TMTB: NFLX Post-call takes

Couple nitpicks…First, Jack at JPM points out on paid sharing:

“I got the sense mgmt was slightly walking away from focusing on converting borrowers vs just signing up new members, be it new cohorts or prior borrowers. This is a slightly different message to that given by mgmt at Q3 where in relation to paid sharing, mgmt said “we anticipate that we will have incremental acquisition, incremental adds for the next several quarters.” Given the Q4 net add pull forward, lots of investors pointing to the negative of this subscriber tailwind coming to an end.

Point take, but NFLX guided to dd growth in 24 so not sure how much I buy the net add pull fwd argument…

Second, commentary around ARM seems like will take a while to ramp up, which is why Q1 top line guide was a little light. Will grow 1% y/y in Q1. Overall though the better margins and FCF make up for it. And this was their biggest revenue beat in % ever (+1.5%). So eventually ARM will catch up to increase subs being driven by AVOD…

O…