We did that with Sky. We’ve done that with Canal. We’ve done that with some others. We more recently did another form of bundle with Walmart where Paramount+ became the video service inside of Walmart+. That’s another bundle. And so we believe in bundling. We are continuing to look at incremental opportunities in this regard. And the only thing we know for sure is it will be a growing part of what we’re doing. As to the specifics of partnerships and timing, etcetera, we’ll see. But bundling is definitely a value-added element of streaming because it gives you access to consumer connections with other have, AKA allows you to penetrate a TAM and it has certain attractive margining characteristics. So we like bundling. Naveen?
Naveen Chopra: Yes. So with respect to the questions on ARPU and what it means in terms of the D2C trends in ‘23 versus 24, I’d point out a few things. So first, the ARPU growth in Q2 was really driven primarily by improvements in, I’ll say, subscriber mix, particularly in international markets, but also a little bit as between our ad-supported and premium tiers here in the U.S. And also was benefited by growth in digital advertising, which obviously enhances ARPU for both Paramount – for Paramount+ and also in Pluto. The thing to realize about the trajectory sort of on more of a full year basis is that there is some seasonality in content expense. So as an example, in Q3 and Q4, we have more sports in season. And so you tend to see slightly higher content expense there, which is the answer to your question of why is ‘23 expected to be peak losses as opposed to 2022.
Now that being said, I think the important takeaway here is that there is significant earnings improvement expected in D2C as we move into next year. There are a number of levers that will contribute to that, obviously, continued subscriber growth, significant ARPU growth. I’ve talked about that a bit in my prepared remarks. That’s a combination of the price increase continued, what I’ll call, accretive sub mix, continued improvement in advertising ARPU, churn reduction and very importantly, getting more leverage on our content investments. We’ve already made a lot of progress on that front. And I expect to see additional large efficiency gains there next year, particularly as we focus on our key audiences, our key franchises, and find more ways to leverage content across platforms.
So we’re really looking forward to what we will be able to deliver next year, but also encouraged by what we’re seeing in 2023.
Kristin Southey: Operator?
Operator: Thank you. The next question goes to Ben Swinburne of Morgan Stanley. Ben, please go ahead. Your line is open.
Ben Swinburne: Thank you. Good afternoon. Maybe just picking up on a couple of the discussion points so far. Can you guys talk about the 20% plus ARPU growth next year? And sort of – I know you mentioned a few of the drivers, Naveen, but a little more detail would be helpful on sort of what delivers that. And how are you thinking about elasticity or inelasticity of demand? That’s probably more ARPU growth than we’ve seen from any other streaming service that I can think of always off the top of my head. I’m trying to figure out if you think you’re going to drive it, you can still grow customers with that level of price increases next year. And then I wanted to ask about cash content spend. Obviously, you guys are highly focused on deleveraging.
That’s pretty clear from your prepared remarks. And you’ve taken, I think, a $2.4 billion cumulative programming charge this year, which would suggest to your point, you don’t need too much content. So what’s the outlook for cash content spending as you look out? Let’s put the strike aside over the next couple of years? Thanks a lot.
