“Netflix pays $20 billion a year for content. YouTube pays creators on a revenue share basis and gets 20 million uploads a day for free. It's just, it's difficult to compete against that cost.”

Live takes about 5% of the roughly $20 billion content budget, around $1 billion, and generates about 1% of viewing. Sarandos admits that the ROI isn't there, but he says the signups drive sign-ups and retention and ads. HSSBC downgraded the stock to hold, arguing YouTube's gains are partly coming at Netflix. Netflix isn't competing against Hulu or HBO. It's competing against YouTube, full stop.

YouTube, yeah.

What do you do then?

I just said it. I think they, I think they need to take what are their assets. Bella and Ted and his co-CEO, they produce probably not the best content, but the most gross tonnage of it. They're the Russian army. I mean, they're just, no one has a, they have the biggest content budget in the world. They do produce great content. They need to create a platform and technology to start slicing and dicing it and move to where the puck is headed. And that is a generation of people that wants to watch it in two, five, and 10 minutes. I watched.

So right. The Quibby turned out to be a good idea. That was