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July 16, 2025 15 mins

Senior business writer Jennifer Maas discusses what to expect from Netflix’s second quarter earnings report on Thursday. Business editor Todd Spangler details the “frog boiling in water” factor in his cover story on President Trump’s aggressive attacks on news media and First Amendment protections.

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Episode Transcript

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Speaker 1 (00:00):
Hello, strictly business listeners. This is your host Cynthia Littleton.
I'm so excited today to give you a sneak listen
to a podcast project we've been working on for a
few months, Daily Variety. On this show, we talked to
Variety journalists and guests about news, personalities and trends that
are making headlines and showbiz. Variety has the most incredible

(00:21):
masthead of journalists covering media and entertainment. In addition to
our strength in La, New York and London. Almost every
day of the year, Variety is somewhere in the world
covering a festival, or a market or a premier. We
want to showcase all this great work in a new
way with this program. Of course, we'd love to hear
your feedback at Variety dot com. Thanks for checking us out,

(00:44):
and away we go. Welcome to Daily Variety, your daily
dose of news and analysis for entertainment industry inside. It's Wednesday,
July sixteenth, twenty twenty five. I'm your host, Cynthia Littleton.

(01:06):
I am co editor in chief of Variety alongside Ramin Stuta.
I'm in LA, he's in New York, and Variety has
reporters around the world covering the business of entertainment. In
today's episode, we'll talk to Variety's Jennifer mos about what
to expect from Netflix's second quarter earnings report on Thursday.
And if it's Wednesday, it's time for our cover story segment,

(01:27):
highlighting the week's big story. In Variety's print magazine, business
editor Todd Spangler signs on to discuss what he learned
by tackling a story about President Donald Trump's assault on
the First Amendment. Before we get to all that, here
are a few headlines just in this morning that you
need to know. Legendary Indian movie star Sabu is getting

(01:48):
the biopic treatment. Variety's nomen Rama Chandron reports that the
Almighty Motion Picture Company has acquired the rights to a
biography of the actor who co starred in Hollywood films
in the nineteen forties and fifties but died of a
heart attack at age thirty nine. Nintendo and Sony have
found their live action Zelda actor Bo Braggison will play

(02:11):
the plucky princess in the live action adaptation of the
beloved Legend of Zelda video game. The fans seem to
be swooning already. Netflix has dropped a teaser trailer for
Stranger Things season five. It's the fall of nineteen eighty
seven in Hawkins, Indiana, and things are not well. The
first half of the show's final season bows November twenty seventh.

(02:37):
Now we turn to conversations with variety journalists about news
and trends in show business. Next up, Jennifer Mos gives
us a curtain raiser on Netflix's Q two earnings report
that is coming on Thursday. Get ready to hear about
AI strategies and competing with YouTube, but don't hold your
breath for a total subscriber update. Jennifer Mis, Senior business writer,

(03:01):
TV and Gaming, Thanks for joining me. Happy to be here.
We're coming off a big day for TV on Tuesday
with the Emmy nominations, and Wednesday is another big day.
We have Netflix's second corner earnings report. Netflix, of course,
now for many years, has set the tone for the
rest of big media. What are we expecting at the
most top and bottom line numbers?

Speaker 2 (03:23):
So right now, Netflix as a last quarter had forecast
eleven billion dollars for revenue and seven dollars and three
cents in earnings per share, And right now analysts have
estimates at eleven point zero four billion for revenue and
seven point six dollars for earnings per share, So it's

(03:43):
not going to be fantastic, but they're they're looking to
meet expectations.

Speaker 1 (03:46):
What do you think co CEOs Ted Sarandos and Greg
Peters are going to be talking about.

Speaker 2 (03:51):
I think probably they're going to be feeling quite a
few questions about generative AI and different ways that that
can impact not only the user interface looking at you
worship habit, feeding more people stuff to their algorithms, but
also how it might effect production costs and distribution. Ted
Zarendo said in a recent interview, trying to make the
point that in general, being able to do giant epic

(04:13):
things will be more possible for the creative community with
generative AI, and they're not looking to take over, They're
looking to make it easier and more economical.

Speaker 1 (04:21):
As you will know, that's still a very very touchy
subject with the creative community. Yes. Absolutely.

Speaker 2 (04:28):
They only settled the sag after strike between the actors
and the video games companies recently, and the main point
there was generative AI and protecting actors against that.

Speaker 1 (04:39):
So it's still a very hot topic. And this also
tells me that Netflix is in fact mortal as a
company in that right now, every company has to articulate
an AI strategy, has to have a plan to show
that we're going to harness this revolutionary technology for the
betterment of our shareholders. And for so long Netflix was
so gold plated. But they also need to be in

(05:01):
this conversation. What other topics do you think are gonna
come up?

Speaker 2 (05:05):
Probably the biggest would be first conversations surrounding Netflix and YouTube,
you know, talking about what Netflix's competitors are. There's been
a long conversation about, well, maybe we don't have any competitors.
Our competitors is like sleep, But really the competitor is
YouTube in a lot of ways, the creator economy taking
up time, what people have time to watch, a lot
of the younger generation being focused on YouTube. So the

(05:28):
conversation surrounding that time, TV share and just in general
attention span. So that'll be a lot of questions and
commentary surrounding that. And then one thing analysts will probably
push on, I doubt they'll get an answer is Netflix
subscriber numbers. Netflix stopped as of last quarter reporting subscriber
numbers because their total steps are honestly slowing that that

(05:51):
doesn't mean that they'll be down. We won't know, they
won't say, but it's just the impressive quarter over quarder
growth is not there anymore, and so they're rolling that
on in a slower, case by case basis, and that
probably won't be a number that we get tomorrow. Maybe
they'll hedge and say, you know, we were up this much,
but not give a real number.

Speaker 1 (06:09):
Netflix implemented this change where they were not going to
disclose quarterly subscriber data. It had become an important benchmark
for the industry in terms of how streaming subscription growth
was going. And as we all remember in twenty twenty two,
when Netflix disclosed that they had slowed quite a bit,
that sent out shock waves that rippled through the industry

(06:31):
in a huge way. So those numbers can truly move markets,
and they're clearly decided that the time has come for
them to be more selective about when they put it
out without the sub number, which was the first thing
that we all went to, that was the headline without that,
Does that make it more challenging? Do you have to
look a little deeper to find your headline for oh, definitely, definitely.

Speaker 2 (06:52):
And one of the things that makes it easier and
is Netflix is now putting out a biannual viewership report
that will come around September, and that will show the
first half of twenty twenty five. So it's going to
be a little more of a struggle tomorrow, but we
will definitely have more headlines in quarter ahead and then tomorrow,
you know, one of the other things will be talking
about both how the ads supported product is going for

(07:14):
Netflix and talking about their appetite for live sports and
just live in general, because we know there's a big
focus on that.

Speaker 1 (07:20):
Yep, all roads in television right now more than ever
lead through sports. I'm looking at the closing price for
Netflix today here on Tuesday was twelve hundred and sixty
dollars and twenty seven cents, So they got a lot
of market cap and a lot of runway, and certainly
no company has ever had a bigger impact in a
shorter time on entertainment. Jennifer, thank you as always for

(07:42):
helping to sort it out for us, and thank you
for your time. Of course, look out for our headline later.
Now we'll hear from Todd Spangler on how he pulled
together this week's cover story, Trump's war on Truth. It's
no exaggeration to say that the First Amendment protections that

(08:03):
we hold so dear are under assault from this administration.
Todd's Bangler. Thanks for making time for me. Hello, So Todd,
you labored on this week's cover story. It was a
beast to put together. Collectively, we decided that the time
had come to take the measure of what the Trump
administration had meant to journalism, to media and the First Amendment.

(08:25):
Todd tell us what it was like to put this
very big subject into context for us for our cover.

Speaker 3 (08:32):
So what's not new? Right? Everybody knows that Trump complains
about the press the media constantly. In fact, we found
that on average, he spits out one attack on the
media or a journalist per day for the last ten years.
So that's not new. But what was interesting to see

(08:53):
when you put it all together in one place. Now,
I thought of this metaphor of the frog boiling and water,
where you know, he's not just railing against the thing news.
It's not just that he's you know, he's filed those
lawsuits against media companies and he's won settlements. You know,
he's moved to use the power of the federal government

(09:13):
to defund public media, for example, and he's blocked the
Associated Press from the Oval Office because it continues to
call the Gulf of Mexico the Gulf of Mexico, not
the Gulf of America. And that's just a clear explicit
example of retaliation of a news outlet exercising its free speech.
So putting it all together was kind of eye opening

(09:36):
to see the full sweep of what's happening here in
terms of attacks on the free speech. And by the way,
to the story touches on this that he's gone after
law firms that oppose him, He's gone after universities with
which he has some ideological disagreement, and other things. And
so this is not just limited to the media.

Speaker 1 (09:56):
These are the rights that define us as American. You
talk to a lot of legal scholars, what are they saying.

Speaker 3 (10:04):
They say that the playbook is really designed to make speakers,
whether that's the news media or anybody else who might
challenge or critique this administration, make them think twice. You
reached it to more than a dozen different major media organizations,
and nobody wanted to go on the record. And the
only CEO of a media organization that did was Paula Kerger,

(10:27):
CEO PBS. She says, it's clear that it's designed to
inhibit the kind of news coverage that PBS, for example, does,
I asked Paula Kruger, this is not in the story,
but I said, why is Trump doing this? And she responded,
I don't even know where to beget And you know,
it was not an emotional response from Paula Kerer. There's

(10:50):
a recognition that there's certain factions that want to change
the way America thinks about itself. I mean, that's really,
broadly speaking, what we're talking about, and so that's kind
of a lens through which I came to this story.

Speaker 1 (11:05):
Let me ask you specifically about the FCC, the Federal
Communications Commission. What did you gather from the scope of
the actions that the FCC has taken in instituting probes
into ABC over DEE and I, probing NPR and PBS.

Speaker 3 (11:21):
There's no question that Brandon Carr is a Trump loyalist.
He's proud of that. He's said that he will carry
out Donald Trump's agenda, which is not Historically. The role
of the FCC is an independent agency one of the
timely hooks for this story it was the Paramount Global

(11:43):
settlement with Donald Trump. The conventional wisdom was that, hey,
this is a quid pro quo going on. Once paramout
settles this deal, that will clear the way for the
Trump administration to give the blessing to the sky Dance
media emergent, which is something Paramount really needs in order
to get back on its feet. We talked to Anagoveez,

(12:06):
who is the lone Democrat on the FCC, and she
told me that she's surprised that, first of all, Trump
hasn't fired her, and she is telling anybody who listens
that the FCC under Chairman Brandan Carr is being weaponized
for political purposes, and that it really is a thread
to the First Amendment.

Speaker 1 (12:26):
The step back question is the dichotomy between Trump calling
himself a First Amendment warrior and actions that are clearly
designed to intimidate and to put a chill on aggressive
investigative reporting by news organizations. Did you find anybody that
could square that for you, Like, how do you call

(12:48):
yourself a First Amendment warrior that then go after reporting
you don't like?

Speaker 3 (12:55):
It's sort of like free speech for everything. As long
as I agree with it, which it's just not free speech,
is it. So we reached out to the White House.
Trump says he's for the First Amendment. There are all
these critics who say he's undermining free speech, and they
a seement back to us. Actually, according to this statement,
there is no greater defender of freedom than President Trump,

(13:18):
and he, the statement goes on, he ended the Weaponsation
of Justice, restored over four hundred press passes to the
White House complex, and takes immediate questions daily. Meanwhile, about
the paramount settlement, a spokesperson for the Trump legal team
mosted of scoring a victory over the quote thing news

(13:40):
and it's another win for the American people. According to
this statement, that holds the fake news media accountable for
their wrongdoing and deceeeds.

Speaker 1 (13:50):
It's never felt more like we are living in two
America's Todd, this was a lot to wrangle. Thank you
so much for your labor on this. I think it's
going to be an important doc for now and in
ten years time when we're still trying to figure out
what this all meant.

Speaker 3 (14:05):
Thank you so you.

Speaker 1 (14:09):
As we close out today's episode, here are a few
things we're watching for as we ease into second quarter
earning season. The next date to watch for is July
thirty first. That's when Comcast will deliver its results. Variety's
Ten Comics to Watch extra print edition publishes today. You
can also find it on all of our social platforms

(14:29):
and Variety dot com. We'll host an event next week
at the Just for Laughs Comedy Festival in Montreal to
celebrate this year's list. Before we go. Congrats to Colin Creton.
He's joined New Regency as vice president of Film. He'd
been a production executive at twentieth Century Studios and Fox

(14:50):
since twenty sixteen. Before that, he survived two years as
an assistant to Scott Rutten. Thanks for listening. This episode
was written and reported by me Anthea Littleton, with contributions
from Jennifer Moz and Todd Spangler. It was edited by
Aaron Greenwold Sticks Next hick Picks. Please leave us a

(15:10):
review with the podcast platform of your choice, and please
tune in tomorrow for another episode of Daily Variety.
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