I want to start talking about the programming on Netflix. You know, you're the biggest video streaming service that will take YouTube out of the equation for the biggest paid video streaming service in the world. And you talk a lot about kind of making these big, broad shows that kind of appeal to a lot of viewers. And I think some people feel like, as you have targeted more and more people, that your shows are suddenly not because they're for everyone, they're kind of for no one. And so I'm wondering, what do you think distinguishes Netflix's programming from your peers?
Well, first of all, just to kind of set that record straight, nothing we make on Netflix is for everyone. We hope you find your favorite show on Netflix, for sure, to do that. People's tastes are crazy diverse. My wife and I don't agree on what to watch, so it's pretty hard to get the whole world to agree on what to watch. So you make a lot of things that appeal to different tastes, including more prestige awards kinds of programming for that audience. And which is, by the way, when we started, that's all we did. So to think getting kind of an idea of how the programming initiative has broadened over the years, that day when we started with House of Cards in February of 2013, we had one kind of thing, just prestige serialized drama. And then since then, we've added competition shows and game shows and cooking shows and travel shows and original movies and standup comedy. Everything we've done since then, it's just been an ongoing expansion. But we've been doing, we're not doing it instead of the kind of things you were talking about. So, and so I don't think, and including, by the way, doing it in nearly every country in the world. So when we talk about Netflix, only half of the story, revenue or watching, is happening in America. It's happening all over the world. And we have these culturally resonant shows in nearly every market that we operate in.
Right. But so does that mean, to follow up on it, that the answer is essentially something for everyone? Not that all programming is for everyone, but you have something for everyone?
For sure. Yeah. But it isn't to say that any one thing is for everyone.
Yeah. There's been a lot of focus on being like Willy Wonka, right? Yeah, yeah. There's been a lot of focus over the last six to eight months, shall we say, on the question of engagement, which is a jargon word for how much time people... Yeah. I mean, watching you, there's people are worried that the growth has not been as strong as it once was. And so what is your answer for why engagement on Netflix is not growing as quickly as people would like it to? And what are you guys doing to fix that?
Well, let me talk about engagement for a second, just itself, the whole arc of it. We kind of set up this debate ourselves, not on purpose. But at one point we stopped talking about subscriber growth. And we talked about why don't we stop talking about subscriber growth? Because when you look at our business model, it used to be a one-for-one. We were a one-SKU company. We had one product. So if you added a new member, you knew exactly how to take those economics out. Now we have multiple types of memberships, multiple in every different country, various tiers. So it became much less easy for Wall Street or the press to track Netflix by subscriber growth, our growth in any given part of the world. So we said, and so instead of giving that number, we said, look, we're going to give you engagement. So we publish a report of everything watched on Netflix, and, you know, down to the minute, you know, twice a year. And so we started talking a lot about engagement. So don't worry about subscriber growth, count revenue, profit, just like a real company. And engagement is just another metric. But at the time we said that, I think we were pretty unsophisticated about how we talked about engagement. Meaning, in that world, I think all revenue is equal, all profit is equal, all engagement is equal, and all engagement is not equal. So we are, first and foremost, we are growing engagement. So we're growing on 200 billion hours of watching. We grew 2%, you know, in our last announcement.
But 2% is not what people are hoping for out of you, right? There used to be double-digit growth in at least, and certainly in revenue, and to some extent even in viewership, they had expected.
This is my point about the growth in general. Yes. Overall, we're not growing as fast as I want us to, and we're working on making that move faster. We are, though, also doing things that create a lot of headwind of that number, meaning when we do live programming on Netflix, which is a relatively new thing, we spend about 5% of our content budget on live events. They generate about 1% of our watching right now. They are, but they do a very different job. They generate a lot of signups. They're really effective for signup, retention, advertising, all those things that they do. But it creates engagement headwind in how you invest against it. And remember when I say we grew 2%, that's an easy number to sneeze at. But it's through all the growth of live. It's through incredible headwinds from things like the World Cup and world sports and all those things that are going on too. So it is a, we are growing the business. We want to keep growing it faster. This past quarter, we did double-digit revenue growth in every quarter and every region of the world. So the business is great and growing fine. I do, I mean, if you ask me, when we were growing at 20%, I'd be telling you, I wish we were growing faster.
Right. So, but when you said you wish you were growing faster and we're working on it, what are the things that you are working on to kind of reaccelerate that growth?
Well, these are some of the things that are in the expansion of what we do. So live was an expansion of what we did that didn't necessarily bring more growth engagement, but it brings very valuable engagement. So it's not a mystery that all engagement is not equal, because you probably are not surprised to know that an hour of Judge Judy in the middle of the day does not generate as much revenue as an hour of NFL football. And so those are...
I saw some CPM chart recently that showed what you make per view versus what YouTube makes per view. And yours is higher.
Yeah. We generate more. We monetize better. Our programming monetizes better. Now, we do, we're looking constantly about how do we do things to bring more value to the members. More things to watch. More ways to watch, all those things. So that is some of these things that are, and I don't want to overcharacterize things like podcast and those things because they're very small investment and very small additions to what we're doing. The vast majority of what we spend on is professionally made movies and television series and games. And so as we lean into those things and make those big swings with the $20 billion content budget, and about 5% of that goes to live, and a fraction of that goes to all those other things that we're just talking about. But there's other ways to, you know, put things on the platform for people that they love. The TF1 deal in France, as an example, where our customers in France would like more French content faster than we can make it. So we have an arrangement with TF1 where the TF1 programming is available on Netflix, and it's very successful and it's growing very fast.
Where you, I mean, speaking of TF1, YouTube just did that deal with Peacock, which was similar, and that you're bringing in another type of programming for YouTube Premium. Was that something that, like, why didn't that end up at Netflix? That felt like...
But by the way, we're in our infancy in doing all of that and doing all those things. So in that particular model, I'm not sure how the economics of it play out. It should be designed so that it's they're selling Peacock through YouTube, which is not different than other channel deals there. I think they're trying to incorporate some of the content into their own Premium tier, but I haven't seen the details of it yet.
But do you think, because had you ended up doing the Warner Brothers deal, you would have added HBO as you would have purchased it as an add-on to Netflix?
Yeah, right. It would have been bundled.
Yeah. Do you feel like going forward, because Netflix has always been a service, you go there, there is one place you watch everything, that as you try to keep growing, you have to become more of a platform where you are selling other services?
It's not that we have to, but we should be. We think we should be much more nimble to be able to add new ways to watch on Netflix for sure over time.
What are the types of services that you think would...
Well, I think the entertainment business itself is plenty big, and we're only, you know, about 6% of it. Seven.
But so that means like you would, if they haven't done this with anyone, but like if you could sell Disney Plus as an add-on, you would do that.
I think over time there's things of, I think for us, what we did with TF1 was one of the more difficult executions of it, which enables us to then spin that out to much simpler, more straightforward add-ons. Right. If we choose to go that path, and I think you look at it, is we've not looked to any of those ways to grow revenue yet. So that's upside in the business over time.
