But then we have a host of other work streams, which I talked about, everything with improving efficiency in our technical infrastructure, which is a very large ongoing effort; streamlining operations across Alphabet through use of AI; all the work we’re doing with our suppliers and vendors; the work we’re doing optimizing our real estate portfolio. So when we’ve described durably reengineering, it’s about continuing to build on work that started, and that is ongoing.
Philipp Schindler: So on the NFL Sunday Ticket side, look, as I said earlier, NFL Sunday Ticket supports our long-term strategy and really help solidify YouTube’s position as a must-have app on everyone’s TV set. You asked about some of the learnings. Maybe I start with a viewing experience. We’ve received great feedback so far. People like the navigation, MultiView, the chat, the lack of latency, a really, really positive feedback on this one. You asked about the ads and the subs. Maybe I start with the subscribers. We’re pleased with the NFL Sunday Ticket sign-ups and all for a season both as part of the YouTube TV bundle and as a stand-alone offering on YouTube Primetime Channels. Remember, you can access them via both. Nothing more to share on the sub side today on this one.
On the ad side, as you know, advertisers can buy from an NFL lineup as part of our YouTube Select portfolio. And this actually allows advertisers to reach football fans across YouTube’s pretty unique breadth of NFL content independently of whether you’re doing live game on YouTube TV or Primetime Channels or watching NFL highlights, post game commentary on YouTube channels. And we saw solid demand across the ad market around our YouTube Sunday Ticket offering here. We’re excited about the partnership ahead or the partnerships ahead. This is our first season. And I mentioned over 90 upfront and scatter advertisers partnered with YouTube in our first year across NFL Sunday Ticket in-game opportunities, which we really appreciate.
Operator: Our next question comes from Eric Sheridan with Goldman Sachs.
Eric Sheridan: Two, if I could. Sundar, a bigger-picture question, coming back to your comments earlier in the call on Search Generative Experience. When you think about the evolution of product over the next couple of years, how do you envision more traditional search and things like the Google Assistant continuing to evolve in a world of Search Generative Experience and Bard and what that might mean for elements of commercial and non-commercial search and how use cases might change in the years ahead? And then, Ruth, I just want to make sure we understood some of the messaging from the release and the public comments around one-timers in the quarter itself. It seems as if they were not allocated to the segments but are more elements of Other Bets and Alphabet-level activities.
I just want to confirm whether elements of those one-timers were captured in the P&L statement and whether there were also any elements of legal one-timers that would be called out this quarter as well?
Sundar Pichai: Thanks, Eric. Great question. Look, it is an exciting time. Clearly, as I said, as we are incorporating SGE in the product, the early feedback is positive. And we’ve been iterating on it, and it clearly works for certain type of queries very well. We are expanding the set of queries where it works very well. It definitely is answering a certain category of queries for the first time in a better way. So that gives us direction to proceed as well. Overall, one of the things I think people underestimate about Search is the breadth of Search, the amount of queries we see constantly on a new day, which we haven’t seen before. And so the trick here is to deliver that high-quality experience across the breadth of what we see in Search.
And over time, we think Assistant will be very complementary. And we will again use generative AI there, particularly with our most advanced models and Bard, and allows us to act more like an agent over time, if I were to think about the future and maybe go beyond answers and follow through for users even more. So that is the — directionally, what the opportunity set is. Obviously, a lot of execution ahead. But it’s an area where I think we have a deep sense of what to do. And all the work we have taken so far, the feedback has been super positive.
Ruth Porat: And then in terms of your other question, so on the real estate charge of $1.2 billion in exit charges related to real estate, that is in Alphabet-level activities. But the other comment I was making in opening comments is when you go through the various line items, R&D, et cetera, you see it spread there. And we have a table and IR can walk anybody through the technicals on that just to understand how it then gets arrayed across the various lines in the P&L.
Operator: Our next question comes from Michael Nathanson with MoffettNathanson.
Michael Nathanson: I have two for Philipp, I think. Given the importance of Connected TV engagement in YouTube, can you talk about the opportunity outside the U.S. for Connected TV? And what the company is doing at large to drive more adoption of YouTube or Connected TVs given the Google operating system? Anything you talk about outside the U.S.? And then you’ve been consistent about the strength of Shorts over the past year. Can you talk a bit about the modernization challenges? Do you still see the headwinds that you saw at the beginning? Anything you could share about the density of the auction or advertising interest on Shorts to help us with whether or not that’s still a headwind to growth?
Philipp Schindler: Yes. Thank you so much for your question. On the Connected TV side, I mentioned it actually continues to perform really well. I said before, YouTube is the leader in U.S. streaming watch time and it’s not just one audience group diving deep. It’s really all audiences. On the international side, it’s something we are closely looking at. There’s nothing specific I have at this moment in time on this one. On the Shorts monetization side, look, we built Shorts to respond to the huge demand from both creators and viewers for short-form video. And we’re very pleased with the growth we’ve seen. I mentioned 2 billion-plus logged-in users every month, 70 billion in daily views. Specifically to the monetization question, Shorts monetization continues to progress nicely.
