Netflix
Q3 2022 Earnings Call
Oct 18, 2022, 6:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Spencer Wang
Good afternoon, and welcome to the Netflix Q3 2022 earnings interview. I'm Spencer Wang, VP of finance, IR, and corporate development. Joining me today are Co-CEO Reed Hastings, Co-CEO and Chief Content Officer Ted Sarandos, COO and Chief Product Officer Greg Peters, and CFO Spence Neumann. Our interviewer this quarter is Doug Anmuth from J.P.
Morgan. As a reminder, we will be making forward-looking statements, and actual results may vary. With that, let's jump into it. Doug, over to you for your first question.
Doug Anmuth -- JPMorgan Chase and Company -- Analyst
Great. Thanks, Spencer. And great to see all of you, and thanks for having me join you again today. So, let's jump in with advertising.
Obviously, a lot of discussion here heading into the launch. You announced details for the new basic with ads tier last week launching in the U.S. and 11 other markets. Can you help us understand how you arrived at the price point and the product features for basic with ads?
Greg Peters -- Chief Operating Officer and Chief Product Officer
Yeah, Doug. So, you know, a lot of what we're thinking in terms of setting pricing for basic with ads and how we think about pricing, in general, anchors on, you know, what's the value that we're delivering consumers. We're trying to work very hard to translate the dollars that they give us and do incredible shows. And you can see, sort of, in Q3 some great examples of the series that we're delivering there, the films we're delivering there under the Q4 slate looks incredible as well.
And then specifically, with regard to ads, we modeled out essentially what we think the expected revenue is on a variety of different countries that we're launching in to make sure that, you know, in a combination of the subscription price that we're charging for basic with ads plus that anticipated monetization, we'd be roughly, call it, unit economics-wise, revenue positive to neutral And then when we look at them, the fact that we think that this lower price will -- consumer-facing price will bring in a lot more members, then we're quite confident in the long term that this will lead to a significant incremental revenue and profit stream.