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[00:00:00] Thank you, Mr. Chairman, for calling [00:00:01] this hearing. Welcome to the witnesses. [00:00:03] Uh, Mr. Sandos, if I could just start [00:00:05] with you, let's let's continue to talk a [00:00:06] little bit about the labor impacts here [00:00:08] if we could. How many US-based employees [00:00:10] does Netflix currently employ? Do you [00:00:12] know? [00:00:12] >> About 10,000. [00:00:13] >> Yeah. What about in production roles? [00:00:16] >> Uh, well, in the last over the last, [00:00:18] it's a fluid number, but we've had about [00:00:20] 155,000 production jobs [00:00:22] >> about now [00:00:22] >> on our originals at any given time. I [00:00:24] don't know the number exactly. Sorry. I [00:00:25] can follow back with your with your [00:00:27] staff, though. Warner Brothers. How many [00:00:28] US production jobs? [00:00:30] >> Uh I don't have the exact number, but uh [00:00:33] it would be I would think in the 8,000 [00:00:36] range. [00:00:36] >> Okay. Um here's my question. If if this [00:00:39] merger goes through uh what's your your [00:00:42] projection about the amount of domestic [00:00:44] production, say two years from now, is [00:00:46] going to is it going to be static? Is it [00:00:48] going to decline? [00:00:49] >> It's going to our production is going to [00:00:51] increase. [00:00:52] >> Domestic production [00:00:53] >> domestic production to increase. It most [00:00:55] of our production is domestic and it [00:00:56] will continue to increase. We've [00:00:58] recently um forecast our our content [00:01:02] spend independent of this deal to grow [00:01:04] to 2020$ 20 billion. Um and those you [00:01:08] know that's a combination of licensing [00:01:10] producing. Now those licensing dollars [00:01:12] compel production as well. That's why [00:01:13] it's hard to get an exact number. [00:01:15] >> Let me show you let me show you the data [00:01:17] here about US production recently. It's [00:01:21] the red line here starting from in 2021. [00:01:24] You can see it is pretty much straight [00:01:26] downward. Uh there's been massive shift [00:01:29] in production as I think as Senator [00:01:30] Schiff was alluding to just a moment [00:01:31] ago, massive shift in production [00:01:33] overseas to other foreign jurisdictions [00:01:35] leaving the United States. So will you [00:01:38] commit to increasing domestic United [00:01:41] States production and domestic United [00:01:43] States production jobs? Did I hear you [00:01:45] just say you would, [00:01:45] >> Senator Holly? Absolutely. It's in our [00:01:47] business plan is it's in and it's in our [00:01:49] long-term operating DNA. I will point [00:01:51] out sir respectfully that chart is Los [00:01:53] Angeles. [00:01:54] >> Yeah, but it's reflect it is Los Angeles [00:01:55] but if you look at the data it is [00:01:57] reflective. This reflects all of US [00:01:59] production. US production is not going [00:02:00] up. Right. [00:02:01] >> But some of these jobs have moved. [00:02:02] >> It's going it's going down. These jobs [00:02:03] have moved. [00:02:04] >> Yeah. But the overall numbers are going [00:02:05] down and this is exactly the concern of [00:02:08] labor. And without objection, Mr. [00:02:10] Chairman, I'd like to enter in a [00:02:11] statement for the record from the [00:02:13] Teamsters who have major concerns about [00:02:15] this deal, as does frankly pretty much [00:02:17] every segment of labor, Mr. Sarendos. [00:02:19] And what they all say is they're worried [00:02:21] that you're going to cut residuals, [00:02:22] which is effectively payments. You're [00:02:24] going to cut production jobs. So, let's [00:02:26] just go through a few commitments here. [00:02:27] Will you commit to using union labor for [00:02:29] all domestic shoots? [00:02:31] >> Uh, we do use union labor. [00:02:32] >> Will you commit to using it in the [00:02:33] future for all of your domestic shoots [00:02:35] if this deal goes through? [00:02:36] >> Senator H. We do use this is the most [00:02:38] unionized industry in America and we use [00:02:40] union labor on all our productions. [00:02:41] >> And you're going to going forward. I'm [00:02:43] looking for a commitment. [00:02:44] >> You have my commitment. [00:02:44] >> Will you commit to a 45day or longer [00:02:46] theatrical release window for major [00:02:48] Warner Brothers films? [00:02:49] >> Senator Hi, I just said that I would do [00:02:51] that under oath. So yes. [00:02:52] >> Good. And will you commit to fairly [00:02:54] compensating your workers in the [00:02:55] industry with residual payments? [00:02:58] >> Well, top of market payment has been [00:03:00] Netflix business philosophy since we [00:03:01] started operating over 25 Listen, uh, [00:03:04] what you have been routinely accused of [00:03:06] compressing and reducing residuals. It's [00:03:08] one of the biggest objections to labor [00:03:10] to this deal. So, let's see if you can [00:03:12] lay that to rest today. Will you will [00:03:14] you commit to full residuals? [00:03:16] >> Senator Holly, I would I would I would [00:03:18] like to tell you this is a very [00:03:19] complicated answer because we prepay. [00:03:21] >> That's usually on the way to no. That [00:03:23] that's usually a way of saying no. So, [00:03:24] I'm looking for yes. [00:03:25] >> Senator, I understand this is not a yes [00:03:27] or no answer because [00:03:28] >> it kind of is though. It kind of isn't [00:03:30] because I and we were going to sit down [00:03:31] with the unions of [00:03:32] >> You're disappointing me [00:03:33] >> starting in the next few days, sir. [00:03:34] We're sitting down with the unions for [00:03:35] new contract talks that start actually [00:03:37] in three days. [00:03:38] >> This is a that's a complicated long no. [00:03:40] I would really hope it would be yes. [00:03:42] >> Okay. Are you asking to me to commit to [00:03:44] residuals in the traditional form [00:03:46] because I don't think that applies in [00:03:47] many cases. That's why I'm getting [00:03:49] there. [00:03:49] >> All right. Well, I think you've got some [00:03:51] I think you've got some work to do on [00:03:53] that, Mr. Serendos. And uh I would hope [00:03:55] that you'd reconsider your position. [00:03:56] Before my time expires, I want to ask [00:03:58] you about something else related to [00:03:59] children. Why is it that so much of [00:04:02] Netflix content for children promotes a [00:04:06] transgender ideology? Almost half of [00:04:10] your content for ch I'm talking about [00:04:11] minor children now. I'm not talking [00:04:12] about teenagers, minor children promotes [00:04:15] a transgender ideology agenda. I was [00:04:18] just looking at the data here from your [00:04:21] various serious various series. And what [00:04:23] concerns me is just two days ago, a jury [00:04:26] in New York awarded a former [00:04:29] transitioner $2 million [00:04:32] because she said that her psychologists [00:04:34] and others pressured her into they [00:04:36] pushed on her a an ideology that proved [00:04:39] to be extremely detrimental. I'm sure [00:04:41] you know that in the UK, the National [00:04:43] Health Service in the UK has said that [00:04:46] they're not going to perform transgender [00:04:47] surgeries or any longer so-called gender [00:04:50] affirming care for minors, including in [00:04:53] counseling, because it is so incredibly [00:04:54] detrimental. Our own HHS has come [00:04:57] forward with similar findings this past [00:04:59] year. Yet, if you turn on Netflix, [00:05:00] you'll find that an enormous amount, and [00:05:02] I say this as a parent with three young [00:05:04] children, an enormous amount of your [00:05:06] children's programming has this ideology [00:05:10] and agenda in it. Is this an advocacy [00:05:13] position for Netflix? Are you is this a [00:05:15] is this an ideological commitment you [00:05:17] have? I mean, why is this, [00:05:19] >> Senator Ali? Netflix has no political [00:05:20] agenda of any kind. I would tell you [00:05:22] that. [00:05:22] >> Well, then why is your children's [00:05:24] program so full of this highly [00:05:26] sexualized, highly controversial, [00:05:29] highly controversial agenda? I don't I [00:05:32] don't I don't understand it. It seems [00:05:34] strange to me. [00:05:34] >> Um, respectfully, sir, it's because it's [00:05:36] inaccurate. We have millions of hours of [00:05:38] children's programming. I get [00:05:40] >> You're saying it's not there. You You [00:05:41] don't You don't have trans You don't [00:05:43] feature trans characters, trans story [00:05:45] lines, trans themes. It's I'm saying [00:05:47] it's not in your programming. I'm saying [00:05:48] we feature a wide variety of stories and [00:05:50] programs to meet a wide variety of [00:05:52] people's tastes. [00:05:53] >> Why does almost half of it Why does half [00:05:55] of your children's program feature this [00:05:57] highly controversial, highly sexualized [00:06:00] material? What that just seems strange [00:06:01] to me is it can't possibly be a [00:06:03] reflection of the population. [00:06:06] >> Senator, I don't have any idea where [00:06:08] that number would come from or what that [00:06:09] would be. I don't believe that's been [00:06:11] your personal experience, but I I don't [00:06:13] I can't speak to that. [00:06:14] >> Well, what do you mean you don't think [00:06:15] it's been my personal experience? You [00:06:16] don't think that I monitor what my [00:06:17] children watch on your Here's what I [00:06:18] tell you what my personal experience is [00:06:19] since you bring it up. My personal [00:06:21] experience is that my three children, I [00:06:23] can't let them watch anything they want [00:06:25] on Netflix. I can't let them watch [00:06:26] anything on Netflix unless I preview it [00:06:28] because I don't have confidence in [00:06:30] what's on your platform. I don't know [00:06:31] what they're going to encounter. And I [00:06:32] tell you what, I don't want my kids [00:06:34] being pushed an agenda about their [00:06:36] sexuality or gender identity when I have [00:06:39] not had the opportunity first to discuss [00:06:40] it with them and to form them in that. [00:06:44] And I frankly on behalf of parents [00:06:46] around the country, it offends me that [00:06:48] Netflix is pushing this content at [00:06:50] parents in what seems to be a very [00:06:53] coordinated, [00:06:55] thought through, planned out agenda in a [00:06:59] way that frankly I think undermines [00:07:00] parents. Certainly undermines me and my [00:07:03] wife. We have to watch every show [00:07:04] beforehand before we can let our kids [00:07:06] watch it. Now, I don't know. That seems [00:07:08] pretty concerning to me. I know you make [00:07:09] a gob of money on it and maybe that's [00:07:11] the answer, but I just seems to me that [00:07:14] it's a disservice to the parents of this [00:07:15] country, particularly given what's [00:07:17] happening with our youth on this [00:07:18] subject. [00:07:20] Senator, if I may answer the like I [00:07:22] said, we have millions of hours of [00:07:24] content on on Netflix at any given time. [00:07:26] We have state-of-the-art tools for you [00:07:28] to manage those choices for your [00:07:30] children and to block any title that you [00:07:32] might be offended by for any reason. So, [00:07:36] this this is we we are parents at [00:07:37] Netflix as well. We share all your [00:07:39] concerns about raising kids and also the [00:07:41] ability to raise them as you see fit in [00:07:43] your household and anyone else's [00:07:45] household as well. [00:07:46] >> My concern is is that you don't share my [00:07:49] values or those of many other American [00:07:51] parents and you want the United States [00:07:53] government to allow you to become one of [00:07:55] the largest, if not the largest [00:07:57] streaming monopolist in the world. I [00:08:00] think we ought to be concerned about [00:08:01] what content you're promoting.