were cited as proof of Netflix’s continuing push into feature films. The theatrical window, interestingly, was not mentioned during the call. But Sarandos was asked about how talent is compensated given the stark differences between traditional movie studio economics and the Netflix model.
Given the disappointing subscriber tally, which fell dramatically short of forecasts, Hastings was asked about the miss and also about what it means for his overall outlook on the company’s path. In terms of future benchmarks, Hastings said one he has noted is YouTube. While the video giant is free, as opposed to subscription-based, its reach of about seven times the viewing time of Netflix is a target Hastings conceded thinking about. He also mentioned trying to gain a place in the roughly 700 million pay-TV households outside of China, the biggest country where Netflix does not currently operate.
Asked by Morris if he finds the concept of “streaming wars” — fomented by Wall Street and the press — to be a valid one, Hastings said he does, insofar as it helps popularize the idea of streaming.