Good morning, everybody, and welcome to Liberty's Investor Meeting. I trust that you've all seen the announcements we made this morning. I would love to know who won the pool and got those right, so somebody can tell me later. Also, last night, thanks for many of you for joining us for dinner, and I do wanna give out a shout-out to Jill Robinson, who did get the table theme right, which was the top trending destinations in 2022 according to TripAdvisor. Here we are with our agenda today. One thing to note is that we will be doing Q&A at 1:30 P.M., and John will be streaming in live for that. We will be taking questions from the live audience. If you do want to ask questions, make sure you're back in here for that time. Okay, we do have a Twitter handle, so we encourage you to use it. It is not just for FOMAFE and for Rich Greenfield, so please use it. Here is, for those of you who have been to this meeting many times, this actually changed this year. Please make a note of this, take a picture. Got it. Ask your friends. Share the password. Okay, posting slides. Because of the announcements we made this morning, that means we need to do some filings. Please be patient, and we will get them up there as soon as we can. We're doing something a little bit different this year called Eat and Meet. If you notice downstairs, we've got some balloons with company names on them. During the lunchtime, we will have company representatives there. If you wanna talk to somebody from TripAdvisor or from Qurate, please go ahead and find the appropriate balloon. Now I would like to turn your attention to the very exciting FLS. If you could take a look at it, please. [audio distortion] Thank you. Now this is just kind of a fun. These are our movie posters. Little walk down memory lane of some of our greatest hits, or at least in our own minds. We understand it's been a tough year, right? The market is volatile, but we still wanted to provide some levity and some entertainment and maybe take a stab at being creators. We hope you enjoy it. Started as six. Sure. Now they're a team principal. Ten. Speaks three languages. Twelve. Swears like a judge. Four. Okay, he's a five. Now the head of a global motorsport organization. Eight. The organization is the FIA. Two. You sign a driver. They're five, but they come with sponsorship dollars. Ten. They don't finish a race. Three. It's six, but it's a driver for Formula 1. Nine. I didn't understand. Just a guy, average Joe. Now he's a driver for F1. Ten. What if it's for Haas? 11. Good answer. I'm an American. Now I'm defending the American honor of an American team. Okay, I have another one. A race car driver, five, but joins a team and brings a lot of sponsorship money. Ten. He's from Russia. On e. They're a nine, but think that NASCAR is better than F1 NASCAR better than F1? I have to be respectful. One. He's a Formula 1 driver. He's a six. Comes with sponsorship dollars. Four. He's Italian. Two, because otherwise, if I say more than four, everyone believes that I'm pushing him to come with money, and that means that he's not a great driver. He's specifically from Monza? One, because now I live in London. It's a company. It's a seven. It's domiciled in Delaware. Two. Bermuda? Ten. Cayman? 10 plus. Good morning. Great to have you all here. At some of the past Investor Days, we've tried to look across the Liberty companies and provide some thoughts on trends or themes. We talked about streaming as a disadvantaged business model. We've talked about the strength of live experiences. We've chatted about the strength of audio and the opportunity to better monetize the ear. We've talked last year about some of the hype trains out there, including crypto. Mostly, we've had decent accuracy. This year we wanna take a little different tack and talk about our customers, try to find some connections across our portfolio. If you think about what's out there today, too many businesses are into quick actions. Click here, watch that, buy this. All about instant gratification. They target dopamine-induced brain pathways, much fueled by social media, but these pathways wear out, and there are diminishing returns on your marketing. It's like an addict needing more to reach the same high, and it's increasingly difficult to remain engaging. Many of the business models at the Liberty companies are different, and they're architected that way. They're built so customers' brains can lean back, take a break, and enjoy an experience. Think about SiriusXM in your car or a Braves game or a Formula 1 with your kid, QVC curating product that you want, or a Live Nation concert with your favorite music. This behavior leads to lasting connections and perhaps gives customers' decision-making mechanisms a break. If you think about it, you're tapping into an emotional center of the brain called the limbic system. I wanna give a nod to Chad Hollingsworth on our team, who had many of these great thoughts. As you think about the Liberty companies, as a result, many of them have built a deep connection with their customers, and it's built on storytelling, authenticity, trust, and relationships. People are crazy. Think about the behavior and the emotional bonds they can build. The Northwestern had a 34-game losing streak. It's the longest in FBS history, but their fans remained loyal. Same, and you can argue about the Jets, the Mets, the Cubs, the Lions, and even the Rockies. We benefit from some of those same emotional similar connections, but we hope we don't defy the similar logic. The fans' emotional investments at the Braves and in the games is stunning, and it remains true even though they're perennial winners. They remain loyal even when we have a heartbreaking loss to the Phillies. Sponsors at the Braves can get way more local eyeballs at a better price with a highway billboard, but those marquee brands want to bond and be in the signage at Truist Park for that same kind of loyalty. At Formula 1, fans say, "The drivers feel like my friends," and we are showcasing those drivers without their helmets, telling their story, getting people to bond with them, and think about how that's happened. 30 million people now follow Lewis Hamilton. McLaren remains a fan favorite because of their heritage, despite their more recent poor record. We have strong country-specific loyalty to many of the drivers and the local brands. The national GPs produce on average 50% greater audiences. When it's in Mexico, the Mexican audience watches, and the audience of the Netherlands were up 81% because of the strength of Max last year. At SiriusXM, there are huge emotional responses. Think about Howard Stern, one of the greatest programming minds in history, and the passion that he brings. When we had the '40s on four moved and pulled to somewhere else in the lineup, we had massive complaints. If you think your music choice, which is generally built when you're a teenager, it's a little scary to think about which drivers they were complaining, but Warren Buffett told me that his Cadillac, which is now seven years old, has never not been tuned to channel 70, SiriusXM Sinatra. That kind of happiness and levity that's built during your commute is priceless, and it becomes a habit. The connection is evidenced by the low churn that SiriusXM experiences despite their relatively high ARPU. At QVC and HSN, customers have a deep connection to their hosts, and they see them as close friends. They have conversations and real-time responses that make them feel like someone is talking directly to them. They love to browse and explore, even if they're not purchasing, and they feel a connection to the founders, the stories, and the history behind the brands. At TripAdvisor, the stickers are recognized globally. You trust a location when you see that sticker in the window. It feels familiar even when you're far from home. You rely on the accuracy of the reviews which require trust in the platform. Those traveler photos are among the most trustworthy source of info. Over its 22-year history, TripAdvisor has built up that trust on a digital platform. At Live Nation, think about it, live music is among the most emotionally engaging experiences. Fan dedication to artists lasts decades. It's no coincidence that among the most common icebreaker questions is, "What was your favorite concert?" These attachments are difficult to create and important to protect. They stem from an emotional attachment which is far stickier than FOMO. These emotional bonds form and are developed at key life stages, and they lead to impressive longevity among customers, and customers become fans, and fans become customers back and forth, the teams, the brands, the artists. Younger cohorts can be far less loyal. Yesterday it was ASOS, today it's Shein. Yesterday it was Spindrift, today it's caffeinated AHA. Yesterday it was feta pasta, today it's butter boards. Some of you actually know what butter boards are, thank God. These dopamine-based business models are fickle, and many of our customers, companies rather, do engage with younger audiences to fill the funnel. We build mindshare for when those relevant life stages, usually with higher discretionary income, occur. The Braves were the first to enter the metaverse with a digital Truist Park. Sirius is broadening its content in music and comedy and sports, drawing younger audiences. At QxH, we've launched a Streaming service. We recently did a Backstreet Boys weekend. This brings in 35-year-old fans when they are just beginning to capture consideration for QxH. We do look to get fans' attention early. For example, we recently invested in Overtime, an innovative Gen Z-focused sports platform. We also acknowledge and are proud that many, though not all our customers across the Liberty family skew older or are more mature. For example, at SiriusXM, the average age is 56. At QVC and HSN, it's in their early sixties, and at the Braves it's 43. As you get older, there's a time when kids are out of the house, focus turns back to yourself, you have peak free time, and you know what you want. Convenience is key, and lean-back models are increasingly appreciated, and you regain disposable income. We recently partnered with The Harris Poll to look across and do some research on older cohorts. Conventional marketing targets ages 15-18 to 54. As a result, 72% of boomers think that marketers don't speak to them and don't care about their interests. The narrative around aging is changing. Hopefully, this audience knows who this is. I'm doubtful that anyone under 25 does. What's amazing is these women, not the mother, were all in their 50s. This used to be 50. Now this is 50. Totally different perspective. 73% of boomers believe 70 is the new 50. 62% believe they are currently in the most liberating phase of their lives. Older cohorts are defying legacy and expectations. They're defying gravity by living longer and healthier. They're defying retirement by opting for semi-retired and moving to more urban centers. They're defying the wealth handoff. Spend the money on themselves rather than give it to Uncle Sam or their kids. They are defying experience expectations, more travel, more live events. We may be talking about upper-income consumers, but frankly, that's a lot of where our businesses go. Look at the average monthly spend on sporting events. Boomers lead. Boomers are the top subscription spenders. Whose passwords are they sharing? You know our historical focus at Liberty on subscription businesses. It fits perfectly. It's the quintessential anti-dopamine burnout model. Subscriptions create a synthetic trust. It's efficient for the brain, and you can relax a world of excessive stimulants. Not surprisingly, at SiriusXM, as customers get older and they move through these life stages, they get car ownership, they increase the number of paid services, and SiriusXM consideration increases. While total time spent listening may decline slightly over time, SiriusXM share goes up massively. Similarly, the relevance of core QVC and HSN customers grows with age. Around 35, we begin to get consideration. Around 45-54, we index about with the population. Over 55, we massively over-index. According to research at Q, women over 50 purchase with the same frequency as millennials but spend two and a half times more on the same merchandise. Women over 50 have spending power of $15 trillion, but less than 5% of marketing targets them. Q focuses on this life stage. In fact, we celebrate it. We bring on celebrities that they love, like Dolly Parton and Cher. The product assortment is curated for this demo. We have 32 neck creams on the HSN site. I thought you'd like that. We have launched special programming and product curation for women in menopause, and we've created Beauty Over Forty, a series with Idina Menzel, which is on our streaming platform. It's not just older we're thinking about, but life stages. At the Braves, as I mentioned, the average age is 43, but the fan distribution comes in three clear spikes. In the mid-20s when they're a young professional, it's let's get this party started. In the early 40s, they're new parents, and they bring their kids, portable children in many cases. In the late 50s when they're empty nesters, and it's let's get this party restarted. The Braves have prioritized the Battery as a family-friendly location, and we are seeing the results in the data growing the number of season ticket holders with children. The average age of season ticket holders is actually been going slightly lower as we move towards those younger families. We can see the lifetime value in this business being massive. Older generations bring younger generations of the game. I can remember going to a game and scoring a game with my father, but then they bring their friends and the circle grows. At Formula 1, we had a TV-only era before, in which a fan's journey usually began, and it was linear, and it began when they were probably introduced by a family member as a kid. It was probably later when they developed their own interest, maybe around 12, oftentimes later than the sports they might have played, like soccer or something else. Excuse me, in the mature European markets, greater than 50% of our fans have been fans for more than 10 years. In today's journey, we have a deeper engagement with a broader set of touch points, and it's less linear. We have digital channels which open up a world of accessible content, and younger audiences watch for reasons well beyond sport. Almost 50% of race attendees surveyed in this year were first-timers. Totally different experience. At Live Nation, festivals always skew younger, dating back to Woodstock, and it was the same this year at Lollapalooza. Even with a lineup of Metallica and Green Day, the average audience was still in their early 20s. We know these fans aren't often the ticket buyers. Head of households are a key demo. The average ticket buyer for the Billie Eilish concert was 39, but that's not clearly the age of who attended. What's our takeaway? Lots of business leaders talk about generational changes, but we find it to look relevant, to look at life stages. Some fundamental truths are universal, regardless of generation. With your first job, you get some amount of discretionary income. When you have kids, often your priorities shift. When you're an empty nester, both wallet and free time grow. Ultimately, bonds are formed when brands are embedded at key life stages. Younger generations do build the pipeline, but don't focus too much on their wallet. Gen Z can be early adopters and lead trends, but they react, adopt, and abandon faster than older customers. Again, dopamine burnout. The 55-year-old plus cohort is considered a look away in many people's eyes, but we say there's the opportunity. As boomer Wayne Gretzky said, "Skate to where the puck is going, not where it's been." Wealthier, freer in time, freer to spend on themselves, and more loyal. Calling people boomer might be an insult on TikTok or from your kids. We see them as an opportunity. We are focused on fostering and protecting emotional connections with our customers, and our business models are not reliant on these dopamine pathways in a world of overstimulation. Our subscription model, again, is a prime example. We like to deliver experiences that bring joy. According to The Harris Poll, while consumers are pulling back on spending, 65% are justifying some discretionary spending that brings them joy. 75% have become more purposeful in how they spend their money to bring themselves joy, especially among older Americans. Look at our mission statement, connecting people and bringing them joy, and look at the words on our website, wherever you see it, hear it, play it or buy it. Liberty. Now let's spend a second. We'll go back to Liberty Media. Thanks. Hi, everyone. I wish you a good Investor Day. I had a bit of an emergency call from Greg's office that he was worried that it was boring again for all of you, so told me I should come up with some kind of joke, but I don't know really what is adequate and I don't think that any joke would make an Investor Day with Greg Maffei any better. Yeah, just push through and hope to see you on the track one day. We asked Toto if he wanted to supply some content, and literally he texted me that this morning of his own volition, so you can obviously see what he thinks. I wanna talk now a little about Liberty Media, and first I wanna give you an update on what we've done since our last Investor Day. At SIRI, despite a weaker SAR and a weakening ad market, we have continued strong financial performance. At Live, we've seen incredible demand year to date, and we expect more growth in 2023. At LSXM, we repurchased $538 million worth of stock at a SIRI effective look through price of $3.91 per share. At the Braves, we won the NL East for the 5th time in a row. For the first time since 2003, we won over 100 games. The team is very well set up for the future, and I'll discuss more about that in a minute. At F1, the F1 excitement is buzzing globally. In Brazil this week, our 2023 GP tickets went on sale, and they sold out in 1 hour and 40 minutes despite the fact we raised prices 20%. We are thrilled with the growth of our U.S. fans and our commercial partners' success. We renewed with ESPN. We moved AWS up the funnel to becoming a global partner. We have $10 billion of contracted revenue at Formula 1 and expect to grow in the fourth quarter. We refinanced our FWONK convertible earlier this year with less shares underlying and a higher conversion price. Most recently this week, we did another. We priced a new F1 term loan with $25 million of annual savings despite a very difficult market, unbelievably good execution. Some reflection on the excitement about the business. Which brings us to the things we wanna talk about on today's announcement. These were two of the best-kept secrets in the world. God, the sarcasm only goes so far. Okay. The split off of the Braves through Tracker into a standalone public company is our first announcement, and the recapitalizing of the three LMC Trackers and creating Liberty Live Group is our second. We believe this creates a simpler, more focused asset composition across our Trackers. Why are we doing this? Well, first, to better highlight the value of the Braves outside of the tracking stock structure, to simplify our current tracking stocks at the remaining LMC, to provide greater investor choice, to provide focused investment opportunities, and we obviously aim to reduce the discount to NAV and enable potential business combinations. On the right side, I wanna remind you, we've had people who are questioning us, and understandably. We have a long, successful history of structurally separating assets. Here's a few of them on the right. I would argue the top three are the most analogous to the Braves spin because they highlighted the value of underlying operating businesses. The ones at the bottom tend to represent entities that largely track on underlying public equities, and the performance of those public equities are what drove the performance. If you look at the top three in particular, pretty successful. With this simplified LSXM, what do you get? The NAV math is very simple now. FYI, the last time the structure was this clean, this discount was 18% versus yesterday's 37%. I leave it to you. In the past year, we have taken the actions we said we would. We de-levered and strengthened the balance sheet. We now have a less levered LSXM, which enhances our flexibility, and we bought back a substantial number of shares at a massive discount to NAV. In this simpler structure, we believe there is more we can do, and we are focused on rationalizing this structure in the near term. Switching now to the Braves. It is a Brave new world. The Braves' success was on the field and in their financial statements. We swept the Mets to win the NL East title after a 10.5-game deficit. We had two Gold Glove Awards in Fried and Swanson. We had the NL Comeback Player of the Year in Ronald Acuña Jr. We had the Rookie of the Year in Harris, and we also had the runner-up for Rookie of the Year in Strider. Given the World Series win and our strong 2022 season, we are investing in the payroll to fuel the flywheel here. Financial success, driving on-field success, driving financial success. With this enormous financial success that we have, we believe we, as we said, we have more to come. We were eighth in payroll this season, up from sort of mid-teens over the last couple years, and I fully expect in the next few years we're gonna be in the top five. We can afford it, and revenue growth and fan engagement are good for our long-term financial success and franchise value. You may have noticed there's high demand out there for sports assets. Money is flowing into the ecosystem with new players of all sorts driving demand. Among baseball teams, Baltimore and Washington are rumored to be contemplating a sale. We'd argue, I think with some reasons, that the Braves are a far more attractive asset. The Los Angeles Angels are rumored to be for sale and sold for over $3 million. We'll see. Each time, each new deal seems to set a new benchmark for sports assets, and the valuations as a multiple of revenue seem to continue to go up. Let me turn to F1 for a sec. When we bought F1, we talked about a couple of things, protecting the heritage and growing the fan base. Most important was creating closer racing with the cost cap, the new regulations, and creating investable franchises. We've made a lot of changes since 2017 there and other ways to make the sport more accessible. We've improved the viewing experience, and we've grown a diversified fan base. I suspect some in this room are probably new fans as well. We've grown race promotion, and we think there's more to go, and we've done that by growing the revenue per race and the number of races. These revenue drivers are still working in our favor. We have the largest calendar next year, and the supply-demand economics are working in our favor among promoters. They increase their capacity, and they're still selling out. For example, Austin attendance this year was up 70% over 2017, with 445,000 fans. Enhancing promoter partnerships is part of our mentality. It improves their economics and ultimately benefits us. Vegas, which we'll talk about more in a sec, will allow us to be better partners and have better learnings. Media rights. We've had unparalleled success growing existing contracts, having interest from new broadcasters, and growing the audiences. That flywheel is working. We've signed shorter agreements in our growth markets. For example, we signed a three-year deal before with the U.S., and we signed a three-year deal again in the U.S.. Why? We expect we're gonna get more money in three years. We're bullish on our prospects. We think there'll be continued growth also in F1 TV, which after a slow start, has really accelerated over the last couple of years. Sponsorship. Another thing, we probably started more slowly than we'd hoped, but the dynamic has been excellent more recently. The flywheel is working here as well. Fan interest has generated more interest among sponsors. We grow the fans, we grow the broadcast, and we grow the sponsors. We have new global partners this year. AWS moved up to global, MSC came aboard, Salesforce came aboard. We continue to expand the inventory of assets available for sponsorship, including digital inventory and virtual signage. Last area I wanna talk about on the revenue side is hospitality and experiences. Year- to- date, we've already generated 109% of the fiscal 2019 hospitality revenue, excluding many large Paddock Clubs are still taking place in Q4. This is the results of Q3. Drivers, demand, and ability. What are the drivers? The ability and demand to flex pricing, increased capacity, and additional sponsorship opportunities for hospitality. This is another way to connect with fans, and they're out there. Things like the F1 exhibition we have in Madrid that'll come next year. Let me talk a minute about Vegas, and Brian will touch on this a little more. We continue to grow the U.S. fan base with the third race. Very exciting. You know, there were some who worried that we would drain Miami and Austin with a third race. Certainly doesn't appear to be the case. No one can accommodate the demand and the larger crowds that we expect in Vegas. We continue to grow the U.S. fan base, as I said. U.S. viewership on TV was up 28% through the first 20 races over last year. This helps fuel other revenue streams like advertising and sponsorship. We will have additional uses for the land purchased at F1 for this race, but we underwrote this land purchase and the investment we will make in the paddock on the basis of the race alone and have upside for year-round experiences we believe beyond that. This is a great economic opportunity for us and the larger Las Vegas community. What is that economic opportunity? We know you've all been wondering. Here's a general overview of the ticket levels, capacity, and pricing we expect in Las Vegas, and we expect a total capacity over 100,000 per day, with much of it tilted towards the higher-end paddock and hospitality experiences. We are confident this will be the largest revenue for any one race ever held, probably by a significant amount. I will note, Vegas is not cheap. There will also be substantial costs, and we expect the profit contribution over time will be as attractive as any top five fly-away race. We're already seeing incredible demand, as you can see on the right, at the LVGP launch party. Now, at F1, we've had great success, and with that has come rising cash flow, and we've taken the leverage down substantially. We have impressive liquidity. Many of you wonder what we're gonna do with this. We think this cash does create optionality. Some of it will be reinvested back in Vegas, but we also see an opportunity in this market, given the dislocations, for us to find interesting things to do, including further buybacks. What's our investment thesis? May I remind you, we'd like to think we think like owners. We're aligned that way. We have permanent capital, which gives us flexibility, and we think we have a differentiated approach. We've had long-term success doing that. Obviously, recent challenges in the marketplace, as you've seen, but for many. I would remind you, we have a flexible toolbox, and we tend to use it, I think, effectively. One of the things that perhaps differentiates us against many corporates is our willingness to exit, and I would like to point out we've done that pretty well with some well-timed exits. It's been harder to invest over the last few years. It's been better to have exits. Two years ago, we sat here and told you we sold LendingTree. Our stock's down 90% since. We sold iHeart at $25 a share. Many of you questioned our foray into iHeart. Pretty good. It's down about $8. DirecTV, I remind you, we had a pretty good run and a well-timed exit when you compare what subsequent investments have been. Let me finish and let Brian come up after me by talking a little bit about ESG across our portfolio. Last year, we announced a coordinated approach across the portfolio for ESG. This year, we held our second annual ESG summit, and we've had several micro summits since. We try and share the knowledge about this across our companies. We think it's some value add. Some of our notable updates on ESG are on this slide, and obviously, this will be posted to the website. With that, let me turn it over to Brian. Thank you. An accountant. Straight middle of the fairway, a five. Now this accountant gets to be. Why is I just middle of the fairway. Starting it. Why is the baseline for an accountant five versus the headie that's like, what'd you say, six or seven. Gets to be a public company CFO. Nine. What about a CAO. It's like a six maybe. A PFO. I don't even know. There's no scale. What about both? CAO and PFO? Yeah. Oh, it's just right back to seven. Or maybe back to your original five. What about for five companies? Well, you add for each other public company, you add one notch. You take your five, and then you'd be up to a nine. A 10. Well, the five assumes you have one. Fair. Good accounting. Yeah. Then you're adding an incremental 4 to take you up to the 9. My wife calls me anal. I think we can all see why based on that TikTok experience. Good morning. Exciting news today for shareholders Liberty and the Atlanta Braves. We'll get into some more details on this morning's announcement in the next couple slides. First, the Braves tracking stock has become an asset-backed security through a split-off transaction that we would expect to complete in the first half of next year. This transaction will be subject to the approval by the Braves Group shareholders and MLB, and the new entity will be called the Atlanta Braves Holdings. Holdings will include essentially all the assets and liabilities of the current Braves Group tracking stock, and we would anticipate addressing the intergroup interest in connection with that split-off. With this transaction, we hope to eliminate the tracking stock discount and have a security that more closely reflects the underlying value of the Braves. In connection with the split-off, we will recapitalize our existing tracking stocks and create a new tracking stock to highlight our investment in Live Nation as well as some of our other investment holdings. This will be called Liberty Live Group. Holders of Liberty SiriusXM Group and the Formula 1 Group will receive shares in Liberty Live Group equal to their proportionate share of the net assets that they contribute to the new tracker. That final asset composition and the exchange ratios will be determined closer to the time of the transaction. Here's how we'll look after the transactions. Essentially following the split off, you'll have and the creation of Live tracker, you'll have three pure play trackers at Liberty Media and an asset-backed Braves security. Liberty SiriusXM Group will only have our interest in SiriusXM, cash and associated debt, as Greg pointed out. The Formula 1 Group will have the operating business at Formula 1, including debt at their level, plus corporate level cash and debt, and this will include our Las Vegas land purchase as well. Liberty Live Group will hold our 31% interest in Live Nation and the Live Nation exchangeables, a nominal amount of cash for corporate overhead and corporate interest expense, and the undrawn Live Nation margin loan. The Braves Group will hold the Braves, the assets of the Battery as we discussed, cash and associated debt at the Braves. It wouldn't be an Investor Day unless I was talking about either exchangeables or a cash convertible. Let's look at the 1.375 basket convertible. Just to recap, in the third quarter, we repurchased 21% of the outstanding principal for $210 million. This represented an effective share repurchase on 4.5 million LSXM shares, as well as the pro rata reduction in the intergroup interest shares associated with the Braves and Formula 1 groups. The repurchase was funded with $179 million of cash on hand at LSXM, as well as cash from the Formula 1 and Braves groups, for the settlement of the intergroup interest corresponding to the amount of the notes repurchased. LSXM also received $27 million in proceeds from the partial unwind of the bond hedge and warrants. You can see on the slide here the remaining basket shares that underlie the convert following this repurchase. This security matures in October of next year, and if the basket convert isn't refinanced in advance of the closing of the transactions that we announced today, the basket would be adjusted to include the new live tracker based on the exchange ratios in place at that time. In that scenario, the intergroup interest would remain outstanding until the convert is refinanced and would be adjusted with the ultimate distribution ratios. Looking quickly at the Braves. The Braves have continued to grow revenue both in their baseball operations as well as the Battery, experiencing a 7% CAGR since 2019. This is looking only at the first nine months of the year and therefore excludes postseason revenue, which can be significant. As you can see here on the slide, $100 million last year with our World Series run. This revenue growth has come as the Braves continue to invest in the team with payroll up $44 million since 2019 and $30 million just since last year, putting us in the top eight as Greg mentioned. It's also led to five straight NL East titles. We believe this sets us up for future success with the young talent secured for years to come, and we support Alex's methodical approach to growing this further as opportunities arise. Growth on the top line has also added to other costs such as retail and concessions COGS, driven by the record attendance, increased revenue share payments, and increase in other costs associated with different events at the stadium as well. This still results in a profitable business that continues to invest in both the team and the Battery. Looking at the Braves' balance sheet, at quarter end, they had $174 million of cash and restricted cash. This is down a bit from $217 million at this time last year, but debt has also decreased $120 million in that time period, despite our continued investments in the Battery. This includes $15 million of restricted cash, which relates to certain revenues which are pledged for debt service, stadium maintenance, and lease payments. We refinanced a number of our debt instruments in 2022, providing better terms and allowing more frequent distributions of the restricted cash. Weighted average cost of debt at the Braves is 4.6%, and the weighted average maturity is eight years. In looking at the maturity profile, we're in good shape. We have recurring amortization on the stadium debt, and then modest maturities for the next few years that we would expect to cover with cash from operations, refinancing or using availability on the revolver or the MLB facility. For debt that's associated with fully leased battery properties, we would certainly expect to refinance those obligations. Turning to Formula 1. They've continued to show strong revenue growth and growing OIBDA margins despite the temporary setback of 2020. Growing primary revenue at a 10% clip and other revenue at 15% CAGR, and increasing margins 220 basis points since 2018. We expect this growth to continue with nearly $10 billion of future revenue already under contract as of 9/30, plus additional renewals that were signed so far in Q4, including finalizing the Australia extension and our latest ESPN renewal. This reflects the continued demand for the sport across all categories and represents 50% growth since 2018 and 30% growth this year alone. Our cost structure is predominantly variable, with team payments representing 62% of the cost base. As a reminder, team payments under the new Concorde Agreement are fully variable and based on pre-team share EBIT, so CapEx activities are now included in the calculation through depreciation expense. As operating profits grow, there's increased operating leverage under the team payment calculation to Formula 1. I would be remiss if I didn't take this opportunity to remind you all that F1's results are best viewed on an annual basis because the mix of flyaway's and the number of races can dramatically impact quarterly results. With that said, there's been a lot of questions this year about the growth in other cost of revenue line item. As you can see from the slide, if we compare back to the first nine months of 2019, you'd see that other cost of revenue is up $129 million and SG&A is up $45 million. This compares to a $320 million increase in total revenue at relatively consistent margins. We often describe increases in other cost of revenues being due to growth in hospitality or freight, which you can see from the slide are primary drivers. We wanna note that other costs of F1 revenue covers all revenue streams and includes items such as technology costs, commissions to partners, costs associated with F1 TV, FIA fees, and other operating costs. We've seen big growth in hospitality costs as Paddock Club attendance has grown, but this is coming with incremental margin. Freight costs have certainly been pressured by the supply chain issues that we're not immune to. We would view this as temporary, though, and we're taking steps to mitigate these increases. We're still moderately margin positive on our freight activities, but we have seen this margin come down as we try to support the teams during this unusual time. SG&A is also up, primarily due to increased personnel costs, and we also changed the company's LTIP program in the current year to make it a cash-based LTIP as opposed to a stock-based program, which it was in the past. There's some one-time items in legal and professional costs and are not individually material, and Vegas so far has not been very significant, only $6 million for the first nine months of the year. Just another view of the cost side of the P&L. I would say here, you can see in each period that expenses have grown, but in each period, revenue has also grown and has more than offset the cost increases, providing that incremental OIBDA margin that we talked about. SG&A and other cost of revenue for these periods has stayed consistent as a% of total revenue. As you can see here, team payments as a percent of adjusted OIBDA has declined from 70% in 2018 to 66% for the last 12 months, and we would expect further declines as we grow pre-team share `OIBDA. Looking at Vegas. At the end of the day, the funding is relatively simple. The land and the Paddock Club building sit at the corporate level, and the race operations sit at the F1 operating company. As previously disclosed, we repurchased 39 acres for $240 million, and we would expect a similar dollar amount spent on the building and track CapEx. This is based on preliminary estimates, and we'll update you as we get closer to the event if there are material changes. This is net of support that's provided by the local stakeholders. These are large numbers, but the opportunity is even larger, with expected revenue approaching $500 million. As Greg said, total economics has put this in the top five of all races in terms of total profit to the company. In terms of what sits where, the Las Vegas GP will pay rent and other fees to Formula 1 corporate for use of the building during the race period. Formula 1 corporate will work to develop year-round activations beginning in 2024 to generate additional returns on our investment. Based on preliminary estimates, there's an attractive payback period at the corporate level, and we view the land as an attractive long-term investment reflecting our long-term commitment to Las Vegas. You've seen this slide many times. Formula 1 converts a high percentage of OIBDA to free cash. Here we're showing the five-year average, excluding 2020. As you can see, at the operating company level, F1 converts roughly two-thirds of OIBDA to levered free cash. Very minimal working capital impacts, low CapEx, and a low effective tax rate. Primary impacts to working capital on a year-over-year basis relates to the timing of receipt for race promotion fees, generally related to our first quarter races. The most insignificant impact at the OpCo level, sorry, is interest expense, which we've actually normalized here to reflect the $145 million decrease in interest expense over this period. As you heard from Greg earlier, we plan to refinance the debt, F1 debt shortly, with a $500 million paydown. We would expect to further reduce this interest expense in 2023 by about $25 million. This is a historical view, so it doesn't include Las Vegas, but following the initial build-out, we would expect these percentages to return to historical averages. Cash taxes have remained in the low single digits over this time period. We do expect a modest increase to the mid to high single digits, primarily due to U.K. tax rate increases. Lastly, we do have currency impacts at F1, but those impacts are generally pretty immaterial, as roughly 80% of our revenue and costs are in U.S. dollars. The P&L is exposed to both transactional and translational currency moves. The team payment calculation is impacted by the transactional FX gains and losses, which further offset some of our exposure. The most significant revenues that are not in U.S. dollar include certain broadcasting agreements and certain promoter agreements. Our most material current exposure is to the pound, but where we have a natural offset with our London-based corporate headquarters and personnel expense. Thank you very much. All right. Good morning, everybody. Nice to see everybody here in New York. Greg, I want to say what a pleasure it is to be here in New York. Talk a little bit about joy. What was it? We were 10.5 games back in the division before one of those New York teams got overtaken. Sorry for all you New York fans out there. We don't feel bad for you. We feel our joy. I would be remiss if I didn't start by acknowledging the transaction or the direction of the transaction. You know, from our perspective, from a Braves team perspective, it's business as usual. I mean, our goal is going to be every year to try to win a World Series and to operate the best sports and entertainment business possible. I think we have shown that, and I think we're gonna continue to show that. As you can see, you know, the title of this slide here is World Championship Business Every Year. Despite the fact that we did not win the World Series this year, of course, we won it last year. We're still celebrating. We're still having that joy. We did have a really good year, and, you know, there's much to talk about there. Before we do, I think it's worth mentioning, you know, while Liberty has had a relatively short period of owning the Braves, all very good times, very joyful times, we've been in existence for 152 years. It goes back to Boston, and then after that, Milwaukee. We've been in Atlanta since 1966. We've won four World Championships, so we've got a long and storied history in our franchise. You know, there's a couple of maps that have been up there already shown, but one of the things that I wanted to point out is for all intents and purposes, we own the South, the Southeast. We've got a 6 plus state region that we draw from, and we are the team in the Southeast, not just Major League Baseball team, but we're the favorite team of just about everybody that's in that region. We've got about 40 million fans, we estimate. As mentioned, we had over 3.1 million people come visit us at Truist Park this year. Some great stats. Each blue dot, by the way, represents where a fan came from, just so you know. Specific to Atlanta, the reason we put this here is while we're sitting here in New York, I think it's worth noting that Atlanta is a great place. It's a great city. The highlight here is that it's an extremely diverse city, and we're a member of that city. We're a part of that community. We have a lot of give back that we do as part of our foundation and a lot of related things to embrace that community. But we're really pleased with the diversity that we can appeal to and the way in which that complements our business. And of course, we're joined in Atlanta by a number of other very large companies, Coca-Cola and Delta and others. Specific to our fan base, you know, our fan base continues to grow. Obviously, when we do better, it grows even faster. We have a diversity, as I mentioned, among our fan base that I think is second to none in baseball. We've become younger over the years. That's something that's also very good in the world of Major League Baseball. You know, you hear these tidbits about baseball being only an older person's fan, older person sport. That's not necessarily the truth with us. I think the other ways in which we've become younger is we've connected to our fans clearly in a lot of different ways. Here's some reflection on the right side of the screen with our social media and how that has grown over a period of time. We're continuing to emphasize that, lean into that, and try to do more with the engagement that we have with social media. Speaking of our fans, one of the things that we've been doing, I would say the better part of the past 10 years is we were one of the early adopters to begin with of a digital ticket environment, previously at Turner Field and now at Truist Park. Why is that important? Well, with that, as well as other connectivity, it gives us an ability to capture data. We know who's coming into our ballpark. We know who the fans are, and then we can market to them and market to them more specifically, something that is more tailored for them and give them an experience that they want. I think the future of this is not only how we can grow the business as you've seen, ticket sales and the like, but also what is the evolution of direct-to-consumer and how we play a role with that, how we might help market that and become a greater role in developing that business. We're looking forward to that, and we have a huge emphasis on the capturing of data, the use of data in our environment. Again, I think that's something that stands apart from not just other Major League Baseball teams, but other professional sports teams. Here's a snapshot of, obviously, U.S., and the red dots represent where people are streaming Braves games, watching Braves games throughout the country. The point here is, while certainly our focus and our national or our geographic territory is confined to the Southeast, we are really a national team. You know, we have fans all over the place. If I was to do a show of hands in this room, I'm sure I'm gonna get a lot of you, especially after this past joyful year. We have about 145 games that are broadcast regionally. The remaining are broadcast nationally with some of the national partners that are denoted there. The other thing I think is worth pointing out is radio is alive and well in our business. You know, we have over 160 affiliates, making it the largest radio affiliate network in all of professional sports. We have a lot of people that we connect with on radio as well, and we'll continue to lean into that. I know a lot's been talked about with respect to our broadcasts and specifically broadcast revenues. You can see that we're entering the period where we have a nice little step-up in our broadcast revenue, so that's gonna be fun to enjoy. It is worth noting, and I think, you know, it's the elephant that's out there in the world of regional sports networks. We are aware of some of the changes and the disruption in that environment. We're very much a part of the solution in that, working closely with Major League Baseball, as well as our own thoughts on what we can do to mitigate some of the changes there. In the meantime, we have a great relationship with Ballies, and they're doing a wonderful job of broadcasting, as I said, those 145 games or so. You know, as it was mentioned about our attendance, here's a quick graph showing our attendance since we went into Truist Park. We've had nothing but upside with the exception, of course, being some of the COVID-impacted years where we had limited attendance as a result of that. This year, having over 3.1 million fans embrace the team was absolutely incredible. We had the highest% capacity sold of our ballpark compared to any of our peers in baseball, and we hope to have that continued. We'd already had really strong success going into this off-season, so our fans are eager to come back and cheer on the team that won 101 games this year in our fifth consecutive division championship. Some of the specific KPIs of our business, top left is sponsorship, continues to grow, puts us in the top three in all of Major League Baseball. The other points here are specific to attendance as well as revenues from each of our games. As you can see, we're trying to do a good job of both offering a competitively priced ticket, but also continue to chase the yield from which we derive a lot of those revenues. Things are looking bright in the future for that. The Battery, our real estate development portion of our business, has been working exceptionally well. One of the things that we decided to do on this graph is show you not just the amount of square footage that we have, but on the left side of this screen, we began to measure us across the country and some of the attractions that are out there that people visit across the year. On a 12-month rolling average, we had 10 million people come through The Battery Atlanta. Simply incredible. On the bottom left, you can see some of the attractions and places that people visit across the country and how we rate. In Atlanta, among leisure activities, we are by far number one. As far as our results are great. You know, obviously we had some tremendous year coming off of last year's world championship. We are incredibly proud of the work that our staff has done, engaging with our fan base and what that's resulted in with respect to the revenues. Obviously, when you have gains in attendance, you're gonna have gains in the revenues that derive from our events. Not just ticket sales, but we had incredible results in concessions and retail and all the other event-related revenues. As you can see, we've had a fairly significant uptick in our total revenues. Of course, the expenses are reflective of we're investing more in the team and some of the other things that it takes to run this business. Overall, OIBDA is $81 million, and we obviously have an operating income of $13 million there. Overall, if you compare this business, we're doing exceptionally well. Things are bright for the Atlanta Braves. Really proud of the results that we've had. Excited about what this new venture might mean for us, but I think the lasting point that I'll make for you is that for us, it really means that we're gonna continue to operate the business the same way we have. That's been a successful business. It's been successful in large part because of the way that Liberty allows us to operate. They take a relatively hands-off approach, allow Terry McGuirk, myself, Alex Anthopoulos, who runs our baseball team, Mike Plant, who runs the development, Jill Robinson, our CFO, who's here to operate this business in the best possible way. Look forward to answering any questions in our sessions later, but in the meantime, let's have some joy in knowing that we won the division championship here, the division, and hopefully we'll win the World Series again next year. Thank you all for having me. We'll take a break now, and if you could come back at 10:25, we'll start back up with Sirius. Thanks. Ladies and gentlemen, we are five minutes to the start of the Liberty presentation. Please take your seats. Ladies and gentlemen, we are two minutes to the start of the Liberty presentation. Please take your seats. This is a cable person. It's a 10. They pay for broadband and mobile separately. Three. They still have a landline phone. Five as long as it's ours. Pay for every piece of sports content. That's only about an 8. They're a 10. Mm-hmm. They still pay for broadband and mobile separately. They're probably still about a 5.5. They still pay for a landline phone. Consolidate. Roll them up, give them a deal. Group discount. Lower churn. What if they still pay for every piece of sports content? Love them. One to 10? 10. Great customer. Not mine. You get a cable media telecom job. It's a six. Now you're working for Kendall Roy. A 1. Haven't you worked for Kendall? What if you're working for Rupert? Ten. Bernie? 10. 1. Greg Maffei. Ten. Life at the home of SiriusXM is always interesting. Interesting. We're doing a very special episode of Conan O'Brien Needs a Friend, and we're doing it at this SiriusXM complex. It's crazy. You know what? I'm starstruck. I really am starstruck. We're always improvising, and that's a huge invisible string that connects us, you know, in a divine way. This is about the culture. We elevate and celebrate these artists. We're the first ones to say, "Hey, this is real. This deserves to be celebrated. It's so crazy to finally, like, sit down here next to yo Right I used to listen to you on the way to school. You thought it was gonna come flying off like a wig. Oh, I keep looking for something. I don't even know how many years we know each other. This is crazy. Oh, I keep looking for something. My last year of middle school was 2017. Oh my God. I'm sorry, y'all. Not everyone can do it. Not everyone can do it. This influx of Black and brown talent, it completely changed the way the game was played. You gotta take it. You gotta run with it. Conan, oh. This was your attempt to bring your father into your music. A lot of my work, if not most of it, that's the root of it. That's the center of it. That's the core of it. This platform gets where music is and where music is going. Well, if there are any of you out there who aren't yet subscribers, hopefully you'll take another look after seeing that video. Pure joy. We actually had an unintentional 3 months free at the end of that. I don't know if you caught that. I'm really excited to be here with you all today to share a bit with what we've accomplished since I last stood up on this stage a year ago, and to give you a first look at where we're headed. So you all can read that in your spare time. Okay. Just over 20 years ago, SiriusXM defied the odds with the introduction of subscription-based premium radio, and many of you probably thought that we'd never get people to pay for radio, something that was generally available for free. We've proved the naysayers wrong, and here we sit in 2022, the largest audio company in North America. We are focused on our vision to shape the future of audio, where everyone is effortlessly connected to the voices, stories and music they love. We're making great strides. With 150 million listeners across our platforms, 40 million subscribers, and an enabled fleet that at year-end will total 153 million cars on the road. At our core, we have always been a consumer-centric organization. We've been D2C long before all these other media companies jumped on board. As we look to capture the next generation of subscribers, we have to evolve our business to serve our consumers in even more meaningful ways. In order to do this, over the past year, we unified our product and technology organization under our new Chief Product and Technology Officer, Joe Inzerillo, and we brought together our commercial teams under our Chief Commercial Officer, Joe Verbrugge, so that we can provide a 360-degree view of our consumers across our touchpoints. We have also made great strides on our key growth priorities. First, owning the car. We are the leading in-car audio entertainment service and focused on bringing even more innovation to the space. Second, streaming. We know future growth opportunities will come with younger streaming-first customers, and we're developing an in-app experience to better serve them. Third, extending our ad platform. We see podcasts as a huge growth driver for our ad business, and our portfolio of offerings gives us a huge leg up on the competition. To give you a quick glimpse into the future of our business, I'll also touch upon something I believe will amplify all these areas of our business, something we're calling SiriusXM Everywhere. Now, I want to spend a few minutes on each of these areas. Beginning with reinforcing SiriusXM leadership in the car. SiriusXM is the only audio service to have partnered with every major car manufacturer to integrate our service directly into the car. Our new and used car penetration rates continue to remain strong at 83% and 52%, and our enabled fleet is now over 150 million vehicles. We have the highest share of ear in-car of any premium service. In addition to recent extensions with Subaru and Stellantis, we just launched or announced an exciting new partnership with Lucid, and our 360L penetration rates continue to climb with the launch of Nissan Altima just this fall. Our 360L solution and two-way data have enabled us to bring new data-driven capabilities to our in-car experiences, and we are enhancing our ability to deliver much better, more relevant, personalized music and talk recommendations to our listeners. While this might be table stakes among other media companies, we're just getting started. These new solutions have enabled us to move faster than ever given the long product cycles from the OEMs, and we look forward to continuing to innovate on this front. Moving on to streaming. We see this as a key growth driver for our business, and we continue to extend our superior in-car listening experience anywhere a consumer is tuning in. I'm excited to give you a sneak peek into a design refresh for our app going live later today. As you can see, this new user interface introduces a much cleaner navigation that emphasizes content discovery across new personalized carousels. These updates come on the heels of recent improvements we've made to our app in CarPlay and coming soon to Android Auto. We've also continued to invest in exclusive content across music, comedy, talk, and sports to draw in streaming-first subscribers that are younger and more diverse. We recently launched the channels, including Selena Gomez Radio. We've had an announcement around Drake, where he did a show, Table for One, on his channel, Sound 42, and he's delivering two unique experiences at the Apollo in just a few weeks. We have live play-by-play of every NFL game across North America. We are giving listeners unique opportunities to connect with content they love and that they can't get anywhere else. These efforts have contributed to SiriusXM's household streaming rates rising 60% since we brought streaming free to our subscribers 3 years ago. Finally, to further expand our reach and marketing, our strategy has been to launch distribution and promotion agreements with a wide variety of brands, including T-Mobile's 4 months of SiriusXM on us promotion. On to our ad platform, a $1.8 billion business. Three major factors set us apart in the marketplace. First is scale. Not only do we reach 150 million listeners across our portfolio, but we've also driven significant growth in podcasts, and we have over 50 million listeners across all third-party platforms. Next is technology. Across our ad tech stack, we are making improvements to streaming and podcast ad capabilities, making it easier for creators and publishers to monetize their content while simplifying how advertisers buy, target, and measure their investments. Finally, content. We are the gateway for advertisers to the biggest events and personalities across news, sports, and entertainment. With new agreements signed over the past year with major publishers, including true crime juggernaut audiochuck, we offer the best of podcasting on and off platform. Plus, with new deals like Team Coco and Crooked Media, we're bringing podcast listeners into the SiriusXM ecosystem with exclusive content on our air. Earlier this month, we signed an agreement with Google to sell inventory across the YouTube extensions of our audio programming, allowing marketers to extend their investments with one seamless buy. Although marketplace headwinds have continued to play a role in the fourth quarter of this year, we are confident that we are making the best strategic decisions to future-proof our business. SiriusXM began as a hardware-centric business with subscriptions tied directly to the technology in the car. Today, we are building offerings for people, not devices, as we continue to give our subscribers the best experience everywhere they wanna tune in. We are investing in a revamped consumer experience and a net new technology infrastructure. These systems are built to scale. They'll also bring further innovation to 360L, and they'll allow us to be more agile and dynamic in and out of the car. The acquisition of Pandora provided us with very strong data backend capabilities, including our Music Genome Project, which we are leveraging across our products. Over the next year, we will continue to add to our capabilities, building entirely new commerce and identity systems. Ultimately, the result will be a reimagined SiriusXM app experience launching in late 2023, one that takes the ease and connection we have in car and extends it everywhere our current subs wanna listen and inviting new listeners into our experience as our standalone streaming business continues to grow. As you can see in this early mock, we think there's a lot of opportunity to create more engaging features and functionality, particularly around sports content. Some images here you might recognize, and we're just getting started. These new features will proliferate throughout our 360L platform and provide our in-car listeners with far more personalized experiences as this platform continues to grow. As we look to continue to profitably grow our business, we are laser-focused on investing in areas we believe will deliver strong returns while also better serving our customers and streamlining costs. At our core, our value proposition to listeners remains the same. We give passionate audiences the content they crave, from sports and music to talk, news, and podcasts. It's joy. Our unique ecosystem gives creators the thing they want most, scaled audiences. We distribute broad, podcasts broadly across all platforms and seek opportunities to migrate audiences back to our premium service through increased exclusivity as audience fandom matures. Earlier this week, we launched Team Coco Radio, which is the perfect example of this. It's executive produced by Conan O'Brien. The 24/7 channel features exclusive content from Conan and leverages the broad distribution of his enormously popular podcast, Conan O'Brien Needs a Friend, to bring audiences back to SiriusXM, where they can go on to discover many other pieces of relevant content. Our hosts are on the leading edge of culture and create emotionally engaging experiences that are habit-forming for our listeners. There are must-hear moments on our air every day that you can't get anywhere else, just like you saw in that video. Across SiriusXM, we are uniting listeners with the powerful shared experience of live, building communities across interests and passions, where all voices are welcome. Looking ahead, you will see us continue to broaden our content to appeal to younger and more diverse audiences. You will also see us reinforce our differentiated position in the marketplace, where our unparalleled stable of SiriusXM hosts define content discovery across audio genres, complemented but not driven by algorithmic programming. It is this perfect combination of human curation and best-in-class technology presenting our content that will shape the next evolution of SiriusXM. With that, let's dive into the numbers. Despite continued automotive supply chain constraints, we added 187,000 self-pay subscribers in the third quarter. This is consistent with our record of steady subscriber growth over time. Sub growth has benefited both from our record low churn of 1.5%, a testament to our fantastic content and our very loyal subscriber base, and from our growing base of streaming-only customers. Looking at the trailing twelve months, we delivered solid results as we continue to drive growth and a disciplined approach to cost management across our organization in an increasingly challenging economic environment. We delivered growth in both advertising and subscription revenue, the latter benefiting from extremely high ARPU growth, which has grown 7% so far this year. Adjusted EBITDA remains strong and reflects meaningful investments in product and content, and free cash flow is down modestly this year because of the satellite insurance recoveries we received last year of $225 million. We have a demonstrated track record of growing revenue and EBITDA and converting that into free cash flow. This year's free cash flow is particularly strong given the benefit last year from the insurance recoveries and a nearly $200 million headwind on cash taxes. Year to date, we have returned $1.8 billion in capital to our shareholders, with $1 billion of that being paid opportunistically as a special dividend this past February. Just this month, we increased our recurring dividend by 10%. That's on the back of a 50% increase last year. Since inception in late 2016, we have increased the dividend by an average of 16% each year. While the increasing dividend will certainly represent more of our capital returns going forward, we are well-positioned to be able to opportunistically repurchase our shares over time and with leverage at 3.5 times, no significant debt maturities for years to come, and most of our debt fixed at attractive rates, we think our balance sheet is very well-positioned. As the biggest audio company in North America, we are focused on maintaining and building on that footprint in profitable ways to deliver value to our shareholders. For our listeners, we are building the future of audio, where everyone is effortlessly connected to the voices, stories, and music they love, wherever they are, and through a curated and personalized listening experience. In closing, 2022 has set the stage for an evolution of our business in 2023, and we look forward to sharing updates as our journey continues. Thank you. All right. Thank you. Everyone has a Taylor Swift ticket underneath their seat. I'll leave. Today we're gonna take you through seven ways that we're gonna keep growing this business. First and foremost, we operate in one of the most exciting industries. This is an industry that's been growing for 20 years, and we believe the best is yet to come. The most important reason that this industry is so powerful is just the fan. We saw it this week, obviously, but this is a passionate fan. When you ask fans what is their most important experience that they're gonna spend on, it's all about the concert. We've seen this over the years in the good times and bad, and as you see here, it's also the last thing that they're gonna cut back on. The best part about it is it's still an actually very affordable experience. Although it's the number one experience, it's pretty much the most affordable experience. This pound for pound punch is probably the best in the league and we see continual access to all tickets to all fans across the globe. Now we've gotta make sure we have the supply. Always ask the question, where are the future stars? If you look at the charts today and the facts, there's a continual new pool of young artists, especially in this new creator economy. Every young artist from around the globe thinks they're gonna be the next Harry Styles and Billie Eilish, and we're continually see the charts dominated year after year by new artists. If we look at our indicators for 2023, that supply-demand seems to be coming through. We're looking at a credible record year out of 2022, but we also believe 2023 right now is tracking ahead of last year in terms of ticket sales. With all that supply-demand, we believe that's been the foundation for our growth to date. We believe it will continue to propel us forward for years to come. Now we'll take you through how we're gonna not only use the tailwind of an exciting industry, but seven ways we're gonna make sure this double-digit AOI continues. First and foremost, we've continually been a global leader, but it's still a huge market, a huge TAM that we have to grow. Outside of America, lots of markets that are low market share. We're gonna update our target today to 175 million fans we think we can grow this business to. Most of those fans are gonna come outside of America. As we now look at the globalization of the artist, thanks to all the social platforms, every artist knows when Taylor Swift drops an album from Cape Town to Milan, and those are all new markets for us. A lot of the growth is gonna come in markets like South America, Asia, Eastern Europe, where we have a very low market share and a great opportunity ahead of us. One of the advantages we have this year, even versus maybe the last slowdown in the economy, is we're much more advanced in our pricing tools using our fan data. Our job isn't just to figure out how to price the front of the house closer to market, but it's also really how do you price the back end of the house. 97% of shows don't sell out, so for all the press we read about the odd high-priced ticket, that's the 1%. Most of our job is how do I fill the house? How do I make sure on a Wednesday night we put a few more people in those seats? Our pricing tools let us do that, figure out the best way to price the front as well as the back to make sure we drive as much occupancy as possible. Our venue business has been a highlight for the last couple years, but it's a business we've been in forever. We're looking more towards the future as live has become such an important tenet now in venues. You look across the globe, whether it's the L.A. Forum, the Ziggo Dome in Amsterdam, or our recently new arena in Austin. Music now is the core tenant. It always kind of been the stepchild to the sports arena, but today you look on a global basis, music can drive from clubs to arenas a great return. When we look outside of America where you don't have the NBA, NHL arenas infrastructure, we see great white space around all these major cities around the world to expand our Live Nation business. In looking at its growth, it continues to be a big piece of our business. We're doing a better job every day on the VIP, on the hospitality, the food and beverage, all of the levers you have when you control the environment within the concert, and we think this business is gonna be continually one of our top growth industries. Sponsorship touches all of this. We're looking at 2023, probably another record year in sponsorship. We are seeing more and more brands look to live music and Live Nation as kind of their league to enter the space. We know how popular the NBA and the Super Bowl and the NFL, those scarce commodities are to brands. We're that equivalent on the music side. More and more brands wanna find ways to touch fans, integrate in meaningful ways into the experience, and our business has been growing because of that. We have over 1,000 sponsors, 23 coming off a record 22. Looks to be another record year. Our final business is Ticketmaster. Obviously, this week demonstrated more than anything I could say earlier, the feverish fan that lives in our space. That's the benefit and the good of our space. Everyone wants a concert ticket. This is a case where we had over 3.5 million registered fans try to buy a Taylor Swift ticket. That was a record registration, 4 times what we've ever done in history. We invited 1.5 million on that day to come and buy those tickets, but it's kinda like having a party. Everybody crashed that door at the same time. We had 3.5 billion requests, system requests on that morning, where 12 million kids tried to jam the door to buy 2 million tickets. We had some slow slowdowns on the site for a few hours so we could throttle the speed. The reality is Ticketmaster's platform is the most robust in the world. We recovered. We sold 2 million tickets, the most we've ever sold in one day in history, and another 1 million tickets of other artists on the same day. Although we regret it was some slowdown and some queues and some error codes for a short period for some fans, we did manage to recover. We got all those tickets sold. This is a business where no matter how well you execute, 12 million kids wanted 2 million tickets. There's no nice way to tell 10 million Swifties there's no tickets. They do what they do, and they go to social and we deal with that every day. Our job is to work for the artist, the venue, provide the most stable, and the system that says, "How do you wanna price it?" Overall, this is a business that has had incredible growth to date. We look at this business on a global basis like concerts. Huge opportunity outside of America. We really haven't grown the business to where we need to. South America, Japan, one of the biggest markets in the world, Latin America, most of Western Europe is all new territory for us. This will be a global story, taking that brand and our technology, do what we do well in America to the rest of the world. What we're really proud about at Ticketmaster over the last few years is how do we grow this business beyond service fees? As more of the service fee really is dictated by the venue, how do we build our scale and use our scale to deliver value and new products and services for fans and enterprise? Been a big growth business for us, the revenue beyond the service fee. We think this will continue to be a large business for us. When you step back, we think we have an incredible attractive TAM on a global basis. We have three or four TAMs on their own, which are attractive. We're growing and leading all. in all of them, and we think we have many more years of growth ahead of us. Thank you. Hello, everyone. I'm sorry to miss you in person, as we are finishing the 2022 season in Abu Dhabi, as you can see. Last year, I outlined the key priorities and opportunities for Formula 1, which were delivering an incredible product that strengthened competition and action on the track, enhancing the long-term prospects of the sport, ensuring an attractive business model for all participants and attracting partners, and continuing to deliver on our sustainability and diversity and inclusion initiatives. I'm happy to report we made significant progress in all of these areas. We have seen already phenomenal interest in the sport continue to grow, and we see a number of factors driving this. This season, we have seen a new generation of cars designed to race more closely, and the results have been great to watch. The cars can race side by side, follow more closely, and this has given us some dramatic races and close finishes. This, combined with our incredible TV production of the races and deployment across the globe by our dedicated broadcast partners, has excited and thrilled our fans. Alongside this, Drive to Survive continues to cover the battles through a different lens. We believe this drama and coverage continues to draw many new fans, and we were pleased to announce that we are confirmed for season 5 and 6. We also continue to see very impressive social media coverage of F1 across our own platforms, but also from the teams, drivers, media, and fans. Our drivers continue to be the heroes of the sport, and their talent has produced exciting outcomes. This year, we have seen a lot of drama and intrigue as to who will drive for which team and who will secure one of the scarce open seats. New rivalries have emerged, and we have witnessed some unexpected podium combinations. Fernando Alonso continues to set records for race starts, which will continue as he moves to Aston Martin next year. While on the other end of the spectrum, we will welcome new driver pairs, including American driver Logan Sargeant to Williams, Nyck de Vries to AlphaTauri, Pierre Gasly to Alpine, and Oscar Piastri to McLaren. We continue to see strong demand to host races. We have said we need to ensure the right strategic balance for the old sport and, as I have said before, I believe 24 races is the maximum we will go to, and we are pleased to have confirmed the 2023 calendar that will include 6 sprints event, and we will soon announce the details of where those events will be. Last May, we welcomed the Miami Grand Prix to the calendar, and it lived up to the hype. The 2022 Miami GP has been the most viewed live race in U.S. history, with tickets selling out in record times and pre-sale tickets selling out in less than 60 minutes, and the star power was unmatched. This further established Formula 1's presence in the United States, on top of the always incredible Austin race that witnesses a new record in the U.S. of 440,000 fans over the weekend. We will continue to build on that momentum with the much-anticipated Las Vegas Grand Prix, joining the annual race calendar in November 2023. Each of the U.S. races are unique, with their own identities, and we will work successfully over a season. These are a few of the factors propelling us forward, and this is just the beginning. We continue to capitalize on all of the opportunities in front of us, and we believe that this business will remain strong, even in a potentially challenging macroeconomic environment. Through the terms of the 2021 Concorde Agreement, changes to the technical regulation and the introduction of the cost cap, we have created a sustainable and thriving economic environment for the teams. This more level playing field has created a more engaging and unpredictable spectacle on the track. More teams are contenders for points. This has, in turn, increased the value for the teams through many avenues. We've seen increased sponsorship activity at the team level, particularly from the countries and brands never before associated with Formula 1. There has also been increased interest from entities wanting to buy a team or start a new team, and this interest, coupled with the effect of the measure we have introduced, has seen teams' value propel to a level where it would be difficult to buy a back-of-the-grid team for less than $500 million, if not considerably more. This, along with the strength of our global brand and sustainable fuel plan, also attracted a new engine supplier, Audi, who will join F1 in 2026 and recently announced their partnership with Sauber. Other OEMs, including Porsche, continue to actively consider future involvement in the sport. We've seen increased demand from our fans to experience the sport in person. Grand Prix tickets have been selling out in record times. This has created a healthy environment for our promoters, who must continue to enhance the fan experience. There continues to be strong demand from other cities and countries to host an F1 race, which puts us in the driver's seat with a limited number of spaces on the race calendar. From an F1 business perspective, there are many positive aspects to our model. With these continued tailwinds, as the pre-team EBIT, the main measure of our performance that determines the size of the prize fund paid to the teams, increases, then the application of the terms of the Concorde Agreement will see the prize fund as a percentage of the pre-team EBIT fall in relative terms. Additionally, we have multi-year contracts across all of our primary revenue lines, some spanning as long as 15 years into the future, a largely variable cost structure, and limited foreign exchange exposure. We believe this helps insulate the business in the event of a more challenging macro environment. Let's look at some of the impressive metrics and milestones the business has achieved. Fans are watching across all platforms and attending races in record crowds. On average, TV viewership to date this season is up compared to 2021, with significant double-digit increase in some of the key markets, including the U.S. We continue to break attendance records, with multiple venues recording sellouts and crowds regularly exceeding 300,000 and even over 400,000 attendees across three-day period of the events. After the first 18 races, we have already seen 4.5 million attendances, which is 36% higher than 2019, the last year circuits were able to host at full capacity. We are also seeing a higher percentage of first-time attendances, female and under 25 in 2022. We will host 18 Paddock Clubs in 2022 and expect that number to increase to 21 in 2023, including in Las Vegas, which, as noted, will be a self-promoted event. The sprint event format at three events has been a success, generating significantly higher viewership than the equivalent prior year events where qualifying ran on Saturdays instead of the sprint. We look forward to having six sprint events in 2023 based on the success of the concept. We've also seen tremendous engagement across platforms, with growth in the unique users, page, and video views and followers. We have now surpassed 59 million followers across all platforms, growing 30% year- over- year. This builds upon our result in 2021 when Formula 1 was the fastest growing major sports league in terms of followers and had the highest engagement rate with the social posts. Our fan base continues to be younger and more diverse. Sky Deutschland reported that over half of the new viewers this season are under the age of 35, and 40% of the new viewers overall are women. Almost 40% of Sky UK's new viewers since 2019 are women. Our own data shows the average age of our fans is 37 years. 22% of our fan base is aged 16- 24, up 6% on 2017, and 40% are women, up 8% on 2017. Our successful eSports league is yet another great fan engagement tool. The 2022 F1 Esports Series Pro Championship presented by Aramco returned in September in a new three-day pre-event format and an increased offering of live shows. Drivers will compete in four events and battle for the $750,000 prize pot. The 2021 series shattered records and reached over 23 million views across all platforms, a 103% increase year-over-year. Already, 2022, the first event saw a 67% increase in total views per race day across digital platforms when compared to event one of 2021. We're excited to see how we can exceed these figures in 2022. Continuing in the world of gaming, F1 games has gone from strength to strength, particularly due to the new addition of Frontier Developments F1 Manager 2022, currently the developer's best performing game. EA's F1 2023 launched in July and is up year-over-year by 14%, making it the franchise's biggest game launch to date. This year's title topped the U.S. game sales chart in June, solely on presale and before the game event launched. Finally, Hutch has crossed a huge milestone, reaching $100 million in gross revenue in 38 months. F1 Clash has been in constant growth every quarter and taking market share, ranking No. 3 in the global mobile racing genre. Our incredible fan growth and engagement is powering F1. We recently unveiled the 2023 calendar, and have scheduled 24 races around the globe, although COVID situation in China remain an issue, and it is not certain that we're gonna be able to be there in 2023. We will continue to monitor the situation and keep everyone updated. Since the start of 2021, we have renewed and extended 10 race contracts, including Abu Dhabi, Melbourne, Mexico, and Monaco, and agreed to four new race deals in Miami, Las Vegas, Imola, and Qatar, with five of these deals out beyond 2030. This lays a strong base for the race calendar for many years to come. We are going to focus on maximizing quality, not quantity, and will optimize the mix of races and could consider new models like alternating years for some locations. We remain interested in new markets, for example, a return to Africa and further expansion in Asia, and we'll continue to explore the alternatives to race there. We expect all promoters to continue to provide full experiences for fans and continuously improve and adapt to what our fans want. We also expect to learn a lot as we take on the promoter's role in Las Vegas, which we believe will enhance our relationship with our promoter partners. Speaking of Las Vegas, we are almost exactly a year out from taking over the sport and entertainment capital of the world. We launched the pre-registration portal at the end of August, and to say demand is high would be an understatement. We also had an incredible launch party with the teams and drivers on the street of November the fifth, showing what F1 and Vegas has to offer. We expect to welcome over 100,000 fans per day and should set new records for the ultra-high end of experiences. We are progressing on our development of the Paddock Club and racetrack and are excited to host year-round activation in the U.S. Here is a sample of what you will see in Vegas next year. Watch out, away he goes. Oh. Let's go. Demand is also high for Formula 1 media rights. We were delighted to announce a multi-year extension with Sky in the U.K., Ireland, Germany, and Italy. A significant commitment from both sides that shows the huge potential the sport continues to have and the potential for further growth across those markets. As the official broadcaster of Formula 1, Sky Sports F1 will continue to be the only dedicated channel to broadcast motorsport in each of the Sky markets and provide their best-in-class commentary to over 80 markets. As we have mentioned before, our strategy has been to do shorter-term deals so that we can continue to set new levels with each contract. Certainly, we saw a much more competitive situation in the U.S., and we were delighted to announce in October a new multi-year extension of our broadcast rights partnership with The Walt Disney Company, ensuring that F1 races will continue to be shown on ESPN networks in the United States throughout the 2025 season, while maintaining our F1 TV rights. 2021 set a record as the most viewed F1 season ever on U.S. television, with an average of over 949,000 viewers per race. That average has increased to seven figures in 2022, with viewer numbers increased as the sport popularity continues to grow. After 18 races so far, live F1 broadcasts are average 1.2 million viewers on ESPN networks, with multiple events attracting record television audiences. Earlier this year, the inaugural Miami Grand Prix broadcast on ABC generated an average viewership of 2.6 million, the largest U.S. audience on record for a live F1 Grand Prix. We also reached another extension with Canal+ in France and new deals in Brazil, Australia, Austria, Belgium, Mexico, and more widely across Latin America and in China for digital streaming. Furthermore, in Asia, we have reached a multi-territorial agreement with beIN Sports, and are in the process of concluding renewals in India and Japan. F1 TV has proven to be a value add complement to the sport, and we have seen the average active F1 TV Pro subscriber double when comparing the first half of 2022 to the same period in 2021. Moving on to sponsorship. We are extremely pleased with our progress. Last year, we mentioned that we are focused on tech, both enterprise and consumer, and we have delivered in this space. Recently, we were excited to announce that AWS will continue as a global partner following five years as an official partner. We also renewed and expanded our strategic partnership with Workday as they become a regional partner of F1 across Europe, the Middle East and Africa. We welcome Salesforce, the global leader in CRM, as a global partner to power and grow fan engagement and create a new era of unique experiences. Lenovo joined as an official partner ahead of 2022 season, with their technology being used across our organization, both back at base and our races. Tata Communications, with whom we had a historic relationship, also returned to us, becoming our official connectivity provider. Outside of technology, we added MSC Cruises as a global partner, and also added AlphaTauri as official premium fashion apparel supplier and Patrón Tequila in our Paddock Clubs. Having delivered all these new partners, we are continuing to seek other partners in sector like financial services and travel, to name but two, and are also considering ways to increase our sponsorship inventory through the creation of new assets, including the potential use of additional virtual advertising solution to expand opportunities for regional sponsorships and the creation of new sponsorship packages comprised of regional Las Vegas assets together with global activation. To touch on our final priority, we remain committed through our action to our important initiatives on sustainability and diversity and inclusion. Our platform aim at tackling the biggest issue facing our sport and global communities. In the area of sustainability, we will be net zero carbon by 2030. Together with Aramco, we are working to develop 100% advanced sustainable fuel by 2026, and we will trial this in F2 and F3 from next year. While this will be impactful for our sport, the real impact will be from a multiplier effect across the global auto sector. We continue to have positive engagement with European Union leaders on the role of our drop-in sustainable fuels can have as a significant emission reduction technology for the automotive sector in the continent, and recognition that this will play an important role for the existing fleet of cars on the road. In our commitment to support diversity and inclusion, we extended funding of the F1 in Schools Engineering Scholarship program until 2025. This program covers the full cost of student tuition and living expenses. We have already supported 10 students with another 10 per year, and have funded the program through 2025, which will in total change the lives of 50 students. In the communities in which we race, we continue to support the F1 in Schools STEM program. This is the largest STEM program in the world, operating in over 50 countries and providing children with hands-on interactive experiences. Our action in these areas will align well with many of our partners. We are working increasingly closely with our promoter partners to implement sustainability practices at the races. For example, at Zandvoort for the Dutch Grand Prix, almost 80% of the 105,000 fans arrive by bike or train, and the generator used biofuel resulted in a 75%-90% reduction in emissions for the energy used in the race. As part of our global partnership with Salesforce, we will identify actionable insights from F1 carbon footprint, helping to accelerate our mission to reach net zero emissions by 2030. In terms of our footprint, we are working closely with our logistics partner, DHL, on a number of innovative logistics solutions to support the sport's air, road, and sea freight requirements aimed at delivering reductions in emissions from our logistics operations. Lenovo is also focused on diversity and inclusion and removing barriers, and through partnership will work with F1 on projects. Audi was drawn to the sport not only as a global stage for their brand, but as a fit for their sustainability goal as well. Reflecting on 2022, we are proud of the progress we have made and the result we have produced financially and commercially. We will enter 2023 with great momentum, and we will continue to seek and capitalize on the many opportunities in front of us. We appreciate your support and hope to see you at Race in 2023. Avanti tutta. Full speed ahead. Thank you so much. Ciao a tutti. Bye bye from Abu Dhabi. All right. I'm gonna switch now to Qurate Retail. Obviously, a very tough year, a very disappointing year in many ways, and you're gonna hear more about it from David Rawlinson. We think we have the elements in place to dramatically improve it over the next several quarters and years. Important in that was the work we did do this past year to strengthen the balance sheet and ensure our ongoing future. Importantly, as I said, was doing the sale-leasebacks on six QVC properties. We sold all of the U.S. properties, and we expect also we've entered an agreement to do something on the UK and German properties. We used very attractive financing in a very volatile debt market. Liability management, and this was a key part of it, is important. That allowed us to reduce our OIBDA coverage of interest effectively, despite the OIBDA headwinds we had. We did receive insurance proceeds related to the Rocky Mount fire. Obviously, the Rocky Mount fire was massively disruptive for the business. You're gonna hear more about that from David Rawlinson, and the things we can do to improve over the next several quarters. We refinanced our MSI exchangeables, we tendered for some of our debt, and we repurchased some of our outstanding exchangeables. Importantly, we have additional source of liquidity going forward, including incremental insurance proceeds and debt financing at some of the subsidiary levels or even potentially asset sales. To undertake some of the work that you're gonna hear on Project Athens and to improve the business, as Dave was talking about, importantly, we hired a new team. Many are replacing existing team members, or in some cases, adding elements of strength that we didn't have. I think this diverse and strong team is well-positioned to do better for this business in 2023. You heard a little bit about how the customer base we serve during my earlier thought piece. The reality is we have a unique base that loves to shop, is older than the average. New customers are coming in, are slightly younger. They're more affluent than the average. Their children are generally grown. These are the empty nesters that I was talking about. Many of them have grandchildren for whom they wish to shop. This is the point, they regain their time, they regain their ability to focus on themselves, and shopping is an important consideration and focus of many of them. Particularly, obviously, we have a 95% customer base that's women, and Q speaks well, H speaks well. Really, all of our companies speak well to their needs and desires. You can see here that these consumers have substantially more dollars than younger consumers, and they are focused on shopping, and they are focused on that market driving their needs. I'm not gonna get a click. I think I'm gonna introduce David now. David Rawlinson. I don't know. Do I wait for the music to go off? I guess I'll just get started. It's great to be here for you and with you today. There we go. It's great to be with you today. I wanna start with a quick reminder for those of you who may be new to the story of what the Qurate Retail Group is. At our heart, we're a collection of human-focused, connection-inspired retail brands. Our iconic franchises, our core video commerce franchise, that's QVC, it's HSN, it's QVC International. Our iconic video commerce brands have 14 million customers, $10 billion in revenue, and every day we air over 100 hours of live programming across our networks. The business has consistently grown the number of minutes viewed. Last year, we had over 66 billion minutes viewed, and in Q3, that number was up an additional 8%. With that, I'll, I think we have a short video to introduce some of the brands. Yeah. In June, I announced Project Athens. Project Athens is a true bottoms-up turnaround targeted at driving OIBDA margin expansion and free cash flow growth. We've made substantial progress since I announced the program. We've completed our assessment and planning phase. We've also aggressively started execution and early actions, most notably addressing the tragedy at our Rocky Mount facility. Greg mentioned it a little bit. For those of you who are new, in December, we had a fire at our second-largest and most efficient distribution center in Rocky Mount, North Carolina. This catastrophic event has been a major headwind in 2022, and recovering has been a prerequisite to launching this turnaround. Post-fire, the team has made rapid progress in cleaning up our inventory, improving our throughput capacity in our fulfillment center network. As you'll see, that fulfillment center network and the supply chain challenges all of retail faced this year has been the biggest drag on profitability and now is the biggest opportunity going forward. To carry out Athens, as Greg mentioned, we've added a real stable of talent. We have Scott Barnhart, who joined as COO last month. He brings 30 years of experience at Cardinal Health, Aramark, Conagra, and Diageo. Our new Chief People Officer, Linda Aiello, comes with deep global expertise. She's been at Stitch Fix, Uber, and LVMH. Soumya Sriraman joined as President of Streaming. She was formerly the head of Amazon Prime Video Channels, and before that, she was founding CEO and president of BritBox. Then Stacy Bowe joined as our Chief Merchandising Officer for QVC US. She has previous experience at G-III Apparel Group and over 20 years at Macy's and macys.com. We're now transitioning into phase II, execution and optimization. We expect our actions to start having noticeable impact on the bottom line in the second half of 2023, and we're working furiously with outside partners to make this happen. Our goal for the next two years is to expand OIBDA margins back to healthy levels and accelerate free cash flows. These are the 5 pillars of Project Athens. They're gonna guide everything we do. They're gonna guide our strategy, and they're gonna guide our execution, and they're gonna align our expectations. I'll start by going quickly through each pillar. Start with the customer experience. Let's start with customer count. Customer count is a key metric, and this has been going in the wrong direction. We've historically reported customer counts at quarterly earnings on a trailing twelve-month basis. This graph shows you year-over-year percentage variances on a quarterly versus a twelve-month basis. We attracted many new low-quality customers during the pandemic. People stayed home. They watched TV. They surfed the web, and we benefited from that, and then the world reopened. We are now starting to see moderation in the rates of decline. I show this quarterly view because it will take time to see this in the lagging twelve-month data, but we're encouraged that we see a path to stabilizing the customer base. The decline rate of new customer acquisition moderated substantially in Q3. The team has a real sense of urgency on this. It's hard to grow if you have a declining customer count. We're undertaking a range of activities to help here. Importantly, our order-to-delivery times are now back to pre-Rocky Mount fire levels. This is important because delivery performance is a primary driver of satisfaction and retention and bringing down the churn rate. We've also done a lot to improve the customer experience. For example, we've improved the post-purchase experience by making returns easier. We are also very focused on building the right type of long-term relationships with our customers. QVC reinstituted and reimagined their monthly mailer, their program guide that's been very popular with customers. Mike George, the president, sent a personalized note to a segment of lapsed customers with a Christmas in July gift. That generated 43% engagement and on average $600 million of increased spend in the following month. At HSN, we're doing a lot to attract new customers with free shipping over $75, more electronics programming, and mailed coupons, offers, and incentives. These moves have driven the improvement in the rate of decline in the customer file, as have others. We are doing a reintroduction campaign for HSN. QVC has a new partnership with the Rockets. We're also doing a lot around free shipping, which can sometimes be a pain point for our customers. I would say importantly, we've been able to run these campaigns largely in either a margin neutral or a margin accretive way. Pillar two is about rigorously executing our core processes. We have to be excellent every day in every business, and we are reinvigorating the focus on that. The crown jewel of what engages and retains our customers is our programming and our hosts. This past August, we completed the Foodie Travel series, where hosts went behind the scenes to meet families and communities behind some of our customers' favorite food brands. The team traveled to Maine and Iowa and Tennessee to be right there catching lobster, popping corn, and savoring barbecue. This authentic connection and storytelling delivered fantastic results, driving nearly 20% more sales than average show expectations. Now we're moving on to launch the New York City Holiday Foodie Travel miniseries as we continue to experiment with new ways of storytelling. The primary story we tell every day is QVC's Today's Special. You hear us talk about the TSV and HSN Today's Special Value. This program has lost its luster over time. We've now selectively eliminated the pre and post selling to TSVs and TSPs to concentrate attention and to drive urgency to buy. This has led from TSV productivity being down last year to TSV productivity growing in the second half of this year. There's much more we need to do here, but we've shown that we can move the needle, and we're all encouraged by it. Pillar three is lowering our cost to serve customers. This is the first time that we've shown this look, so I'll take a little bit of time with it. As you can see, cost pressures led to the majority of QxH's OIBDA decline in the margin pressure in recent years. QxH OIBDA declined slightly more than $600 million over the last three years on a 12-month rolling basis. Fulfillment and freight were more than $300 million of this headwind, and they were driven by inflation, cost pressure for freight, fuel, packaging, and wage rates, as well as substantial costs related to the Rocky Mount fire. Lower sales volume contributed about a third of the pressure, marketing was about a quarter, and then these headwinds were partially offset by product margin expansion. As we look into 2023 and 2024, we see opportunities to reduce these pressures. The largest portion of profit growth will be driven by Project Athens related work, the work we're doing on both the commercial and cost side of the business, with expected generation of $300 million-$600 million in incremental adjusted OIBDA. Looking at some of the details. In fulfillment, we anticipate a $40 million reduction in inbound freight this year. We've seen ocean freight rates down 10%-25% already. We believe there is $100 million worth of favorability in Rocky Mount through increased productivity, lower detention and demurrage costs that were driven by excess storage needed after the fire, lower inventory levels, and getting to a normalized fulfillment center network. We think we'll get about half of that $100 million in savings in 2023. Marketing is a clear opportunity to improve our performance and cost efficiency, and it's a focus of Project Athens. We also see continued product margin expansion opportunity as we wound down our inventory reduction efforts. I'll come back to that in a second. Partially offsetting these tailwinds and opportunities, there's about $50 million of incremental rent that's a part of the favorable sale and leaseback transaction you just heard Greg talk about. We have a very clear picture now of the margin erosion and what's happened to the business over the last three years. We have a clear plan, and we have a clear path to drive margin expansion. I've mentioned inventory a few times. The improvements in our supply chain operations and better execution is really starting to help here. In June, I announced a goal to reduce inventory levels by 20%-30% by the end of the year in 2023. We are well ahead of that plan, and our inventory levels are already down versus last year. Coming back again to the fire at Rocky Mount, it drove massive supply chain disruption, not only leading to additional labor who had to take over manual processes from the largely automated center, but also literally through trailers that we couldn't process that were sitting in the yard. At one point, we had 1,000 trailers in the yard. As we ended Q3, that was down over 80%, and it's down further still now, so we've made a lot of progress in the recovery. I would say we are largely recovered in what's still a makeshift but stable supply chain. Like I said, we've reduced order-to-delivery times back to pre-Rocky Mount levels. As these costs fall off over the next year, you will see it show up in additional margin. I want to take another look at costs. We've been actively managing our headcount down. For the total company, it declined 7% or 1,800 team members since last year. While Zulily was the primary driver of the reductions to date, we have just announced a hiring freeze across the total company, and Athens will reduce costs further still. These are always hard decisions, but they're the right thing to do for the long-term health of the business. We'll be announcing further specifics on our plans here soon. Pillar four is about optimizing the brand portfolio. Zulily is rebuilding the foundation to consistently bring everyday value for mom while resetting their cost base. Terry Boyle hit the ground running since joining in March as President and CEO. Zulily, as many of you know, grew up as a flash sale site. But what we found is moms often have consistent needs. In September, Zulily repositioned itself as a digital superstore for mom. We've been encouraged by the response, especially by the supplier community. Since September, we've signed 300 new, always available national brands on the site. We have also made site improvements as we modernize what was eventually or initially built for a flash inventory model. This has included improving site search, category search, shop by brand, search capabilities. Terry has also brought a rigorous focus on cost efficiencies and improving the unit economics of the business. As shown earlier, Zu had a substantial reduction in headcount year-over-year, including a reduction in force in May. That plus IT and marketing cost control led to a nearly 20% reduction year-over-year in SG&A. There is much, much more to be done to make Zulily a healthy business again, but these are the most encouraging signs I've seen in the last year. Also in this pillar are the Cornerstone brands. Frontgate, Ballard Designs, Garnet Hill, and Grandin Road have just been a remarkable success story. Even in a pressured macro environment, we have seen continued consumer demand for their proprietary home products. Why? Strong employment has sustained strong purchase activity across home interior categories, and CBI's target upper income demographic has been less impacted by the volatile consumer spending environment. CBI has delivered extraordinary market share gaining growth over the last three years with 44% revenue growth over that timeframe. Going forward, we continue to see growth opportunities and controlled retail expansion. We opened a Frontgate in Houston and in Nashville this year, and a Ballard Designs studio concept in West Palm Beach. It is a lesson for all of our retail brands. Exclusive product at the right time and the right price wins. Pillar five is about building new high-growth businesses, leveraging our core strengths. We have long had nearly ubiquitous coverage in traditional TV, but as the consumer moves and explores, we must move with her. Nielsen reports that streaming has now overtaken broadcast and cable, and we can't ignore that. We have three approaches. Let me start with our app, the QVC+ and HSN+ streaming service. I'm pleased to announce that distribution is continuing to grow. We launched as an available app on Samsung Smart TVs in October. We launched on Contour from Cox in October as well. We collectively are now in 92 million homes with our apps. Second, our free over-the-top or FAST channels. We're also moving with urgency to this space. We are currently in 31 million homes. This week, we announced that we launched in this space on the Roku Channel, which was not included on the slide because it happened after we went to press. Finally, with vMVPD, our virtual subscription services like Sling, Hulu, and YouTube TV, we are on all of the major services. QVC has about 95% penetration. HSN has about 50% penetration. YouTube TV just added HSN in September. We are increasingly everywhere our potential customers are, and we have a short video on this. At QVC and HSN, we've always considered ourselves a better way to shop. With QVC and HSN+, we've made the better way to shop even better. Let's start at the beginning. Welcome to the premiere of the QVC network. No, not 1986. The beginning of getting the streaming service. Whether you're on Roku, Fire TV, Apple TV, Comcast Xfinity X1, or a smart TV, you're gonna wanna search QVC or HSN, and you'll be served up the free QVC and HSN+ app. Click Install and you're on your way. Now let's say you're away from your TV for a sec. No worries. We've got you covered. We've got a web version to keep you shopping seamlessly on your computer, tablet, or mobile device until you get back to your TV. Now that you've got the app installed, you're ready to experience it. All of your favorite linear channels are here, plus new streaming exclusive channels, and all of them are shoppable while you watch. Just use your remote to navigate to more info on the item, add it to your cart, and check out. Your item of choice is on its way, and you've never even left the viewing experience. In addition to all those linear channels, there are exclusive shows and events, both live and on demand, showcasing offerings from top national brands, mom-and-pop shops, and so much more. You also can shop shows you wouldn't even think of as shopping. Cooking shows with celebrity guests, documentaries about your favorite designers, even a Christmas movie. This Black Friday weekend, we're premiering a made for QVC+ original movie about magical hot chocolate that makes the people of Pine Falls fall in love. Oh, and you can buy the hot chocolate with your remote. It's all shoppable, and we're just getting started. This isn't just live shopping. This is storytelling and brand building. This is education. This is entertainment. This is a place to discover new products, new people, and new experiences. This is shopping come to life. Content drives it all. Streaming generally requires a more intentional behavior, and content is what drives this behavior. Our streaming business model is unique and powerful because we use content to drive direct sales, not simply engagement that is then sold to advertisers as inventory. Our business model also allows us to create this content in-house for a fraction of the price of our media competitors. Some notable examples include our joining with Netflix for Stranger Things. Also joining with social influencer Tessa Netting to present four original streaming shopping events inspired by the hit series. We also had two live streams. It delivered our largest daily user count ever. In October, we struck a chord with exclusive streaming content from nineties iconic band, the Backstreet Boys and in advance of their releasing their first holiday album. QVC's presale of the album sold out that weekend. We had just in Q3 over 500 million minutes viewed. QVC+ and HSN+ continue to deliver both entertainment and commerce. A few call outs here on results of streaming. We now have 200 streaming only shows and 14 statics dropping new content every week. Our vCommerce team, the team I put in charge of this effort, started working together in March. From Q2 to Q3 this year, we saw a 45% growth in monthly active users on our streaming experience and total minute growth up 18% quarter-over-quarter. We have the capabilities, talent, and team to win in live streaming, and we will continue to press here. I will just say that because we're leveraging our core assets, we're able to do this with a relatively modest level of investment. Which leads me to my final point, how we're gonna continue to generate increasingly larger volumes of cash flow. Free cash flow generation has been core to Qurate over time, and we anticipate returning to healthy, sustainable cash flow. As I described in June, 2022 will be the base year as we establish our free cash flow reference. I would note that this free cash flow outlook does not include potential proceeds from business interruption insurance. In 2023, we believe there's more than $250 million of identifiable tailwinds, including the normalization of working capital from our inventory actions and the related payables, the tax we paid for buying down the MSI exchangeables, normalization of operations from Rocky Mount, and improved freight rates. Inflation of various types, European energy prices, and the sale leaseback rent will be headwinds in the $50-$100 million range. As we look to the second half of 2023 and 2024, we believe there's $300-$500 million of run rate operating cash flow opportunities to capture, and we have detailed specific plans for executing against that opportunity. On the far right, you see eight work streams. Each has sub work streams and accountable owners. We see continued recovery from Rocky Mount, providing about $80 million in benefit. Project Athens is expected to produce an additional $200-$400 million of run rate post-tax operating cash flow from the work streams. We believe the cost work streams will contribute the majority of these cash flows. This creates substantial cash flow growth next year that is not heavily dependent on the economy or strong growth. For many of these initiatives, execution is already well underway. In June, I announced that this would be a three-year turnaround and that it would take some time. A few months later, we are furiously executing to remake this business. It has a strong core, and you can already see some of the signs of improvement in the data, but it will not show up overnight. In the short to medium term, we have direct line of sight to substantial free cash flow growth and OIBDA expansion. In the longer term, we will have the leading and most profitable video commerce and live stream business in the world. Finally, I just want to reiterate Project Athens outcomes. 2022 is the base year. We'll have stable revenue, double-digit CAGRs on both OIBDA and free cash flow, and we remain committed to our 2.5x leverage target. When we first announced Project Athens in June, I referenced the inspiration as being The Republic. Plato wrote The Republic out of a desire to create a society with soul as an alternative to the highly regimented, rigid military culture of Sparta. It mirrors our own mission to create soul and to put it back into retail, and our vision to be the leader in emotionally driven and human-focused retail. We have to transform the company to get there, and we are. Thank you. All right, now we've got lunch downstairs, and we'll see you back here at 12:30 P.M., please. Now it looks like it's time for Q&A. Okay, there we are. I keep thinking we should have John on a bigger screen, like the voice of Oz, kind of, you know. Hello. Hi, John. Hello, John. Okay. Hi, everybody. We have some microphones around, but maybe we'll just start with some pre-submitted questions first, John. Somebody wanted to hear your thoughts on the history and your thoughts on overbuilders. Well, you know, overbuilding has never been very successful in the industry. It's been done by government organizations and sometimes aggressors. Generally, what they find is it takes a lot longer. They get a much lower market share than they had anticipated. Returns have never lived up to expectations. I think all the talk of sort of same technology overbuilding has been driven by super cheap money in an absence of alternate investment opportunity. I think the Federal Reserve is taking care of some of that right now. Technological competition, on the other hand, we experienced that, Greg and I did, when we saw satellite start to take big market share from linear cable. We actually got out of linear cable in the U.S. and got into satellite because we thought it was a better technological solution for linear distribution of video. Obviously, technology then created random access, and you then had a superior terrestrial technology for delivering that new service. It really depends on what function you're trying to fulfill and whether you have a cost technological capital investment advantage over the incumbent, which would determine really the likelihood of success of entering as a new competitor. You know, we've seen this many times over the years. We've seen technological competition. We've seen Intel, in fact, virtually announce the end of the cable industry with MMDS, which was their technology. Fundamentally, to me, for our entrenched or established cable business, I think Tom just did a great job of explaining it. We have a very capable network, capable of its capacity being expanded dramatically at relatively low marginal cost and quickly, which means any incremental demands for greater transport capacity, the terrestrial broadband networks are in the best position to be able to supply that. Also, the thing we didn't talk about, but Greg had a great chart up there. Liberty Broadband with a 14% cash on equity return right now, run rate, and going up fairly rapidly. It's pretty hard when you start there, then you can incrementally add facility. Pretty hard to compete with that, especially when it's in scale. I personally wouldn't wanna put a lot of my money into an overbuild. Ameritech. Remember John Ameritech? That's a great example. Right. I mean, you can cherry-pick, you can scam, you can build out the suburbs, if the cable operator's been asleep and hasn't gotten the job done. It's very, very hard to contemplate a direct terrestrial overbuild, including underground, having any kind of attractive return on investment. Do we have any questions? Questions from the audience? Right here. There still is. That's Barton right there. Barton Crockett. Yep. There's a mic right there. Okay, great. I guess two things. One, on the tracker and the split this morning. The question is this: What keeps you from doing more with Liberty Sirius? I mean, obviously, there's been a great reaction from your investors to the Braves being split off as a separate asset-backed equity. You know, I think that the meaningful investors I talk to in Liberty Sirius are, there's an element of frustration that there hasn't been a larger step, perhaps a harder spin. You see some of that in the stock today. I was wondering if you could talk to them about why not doing more at this point. Well, we tend not to judge it just on 1.5 days of trading. That may be a little abrupt. I think I showed that chart about how many spins we've done and how they performed. You know, I think there are reasons why we made that easier, why we've made future transactions simpler. They were more complicated before, now they're simpler. I think you should trust that we're gonna continue to pursue things that are in the benefits of long-term shareholders. Yeah, Greg, on your chart, you left out, for instance, Expedia, which turned out to be an extremely successful spin divestiture. Obviously, even Liberty Broadband was the result of a spin out, and it has performed quite well in terms of value creation. I think the right answer is positioning and timing. I was just thinking that to myself that I'm sort of happier as an investor to see Broadband where it is today than I was, say, a year ago or a year and a half ago. If in fact, I'm a long-term investor and the company is generating a lot of cash and shrinking its equity, my long-term returns are being enhanced by my patience rather than trying to exploit valuation in the near term. I mean, companies are always worth more dead than alive, frankly. The question is, what's the right timing and what's the right efficiency? I think you have to read the creation of the Live tracker as a move in the direction of ultimate separation and efficient distribution. In the meanwhile, I believe that that vehicle that Greg is creating can be a companion investor with Live and can participate in building value for both Live and for itself, in cooperative ways that perhaps it, on its own couldn't do and that Live on its own couldn't do. Correct. Sorry, you were doing the thing. Okay. You wanna stay on the table? You ask the one, we'll go to Craig. Okay. During the pandemic, cable and home shopping were very important infrastructure and businesses. Travel, sports, and live entertainment were shut down. Now, travel, sports, and live entertainment have experienced a surge, and we may be back to another wave of cord-cutting regarding infrastructure. How do you manage these businesses through such cycles? Well, the reality is the challenge for QVC and HSN has been that cord-cutting has basically gone on, you know, for the last several years. Now, Charter, credit to Tom and team, actually had a blip up in video for a period there, but that was a short-term perturbation. You've basically seen a decline. You're seeing them in Project Athens and otherwise right-size their cost basis to get the core, which has got headwinds. Had big time headwinds over the last year as inventory was out of place and the fire, but has longer term headwinds which are somewhat secular in terms of cord cutting. They're rightsizing the cost structure to accommodate that and then investing in the streaming part where clearly there is growth. I think that's what's gotta be managed. We are in a world where experiences are rising, and if you take the Liberty portfolio, that's been a winner for some of our companies. If you look in particular at QxH, that is a headwind, and they're going to right size, figure out how to deal with it, and then invest where there is growth on the streaming side, where they think there's a lot of opportunity. I don't know. David, would you wanna add anything? Yeah, I thought that was pretty good. I think, Thanks. There's the secular headwind, there's the top line challenge, but I think what we've continued to see is that if you look today, just the number of streaming homes we're in are greater than the number of linear TV homes we're in. We just haven't used that additional reach. Once we start using that additional reach and getting productivity out of it, I think you can see a different type of top-line future for the business. It'll take time to get fully through that transition. Until then, we have what is a incredibly strong, differentiated linear TV business. There's nothing else like it that has to be a profitable business, and it should, and that's part of the work. Okay. Do you wanna go back to Craig? Craig. Craig Moffett from MoffettNathanson, SVB Securities. John, I'd love to hear your thoughts about convergence and maybe starting through the lens of your wireless business in cable and the way that you can offload traffic, onto your network. I can think of a number of different steps, right? Today, there's Wi-Fi offload. You're starting CBRS offload. How far down that path does it make sense to go? Would it make sense, for example, to go even further and acquire mid-band spectrum? Or even, would there ever be any regulatory appetite for letting wireless and cable, companies come together in a combination? We should let John comment and then maybe Tom add to that. We get a mic to Tom. My experience on convergence internationally is that, for instance, in Europe, virtually all of our businesses are currently converged wire and wireless, either through the acquisition by us of a wireless carrier or through essentially the merger between us. That's true in the U.K., it's true in Ireland, it's true in Switzerland, it's true in Belgium, for instance. It's true now in Chile, where we've just merged our broadband business with Carlos Slim's wireless business. Our experience is that convergence creates a lot of synergy, first of all. Second of all, it reduces churn pretty dramatically. To the degree that it reduces the number of competitors who are essentially cutting each other's throats, it leads to a more stable business environment, better profitability. I think from Charter's point of view, and Tom probably could speak to it, you know, the ability to use your own spectrum to build your own radios, opportunistically, I think could turn out to be extremely attractive. Having that optionality, in order to drive down the cost of providing the wireless component of the network, I think is just a wonderful option. Tom? Yeah. So just to add to that, yes, the convergence is real. The interesting fact about mobility is that most mobile activity is in very defined, relatively small geographic areas. So most consumption is in the home and in the business, which is why 85% of all bits carried by devices that are distributed by mobile carriers are actually on the Wi-Fi networks of broadband wireline companies like us. The opportunity when you're selling mobile, which is a lot less bits in total when it's outside the home than it is inside the home, is to, if you have an MVNO like we do, to take traffic where it's opportunistic, to take that traffic and move it onto your own network. That is an opportunity because of the geographic dispersion of how mobile's used. CBRS is an additional opportunity where we purchase some spectrum, the opportunity to use spectrum, manage spectrum. To do that opportunistically, wherever we deploy capital to do that, will be places where there's traffic sufficient where that cost reduction and us carrying the traffic on the CBRS system pays for the capital investment necessary. That's the opportunity in terms of the question you asked was, is there more spectrum that we'd wanna buy? It's really a question of cost and opportunity and whether or not it can be used by us efficiently, where actually we get a return to any capital we would spend to it. That return is the savings. The good news is, we have a ubiquitous permanent MVNO deal. We're not required to build out in the unattractive places. Only, as Tom said, Charter gets to weigh and say, in what markets does this make sense to be an owner and pursue those CBRS owner economics? What markets do we wanna let the other guy, generally the less densely populated markets, where it's relatively low traffic compared to the cost of the rollout, let that carrier handle the cost and let us ride on him. The future of asset mergers is really a question of, can you merge the assets in a way that, at the price that makes it efficient from a cost perspective? Okay. Next question. Yep. Do this one, then we'll go out to the audience. Sure. Okay, so about Qurate. We got a few on this. How will you address near-term maturities? How will you pay the preferred dividend? Also, have you considered buying back the preferred stock? Look, I think we've done a lot to strengthen the balance sheet of Qurate over the last several quarters. You saw we actually have reduced even with lower EBITDA, we have reduced fixed coverage ratio. We've taken it down, and we have a full revolver capacity as well as other potential asset sales to handle our debts as they come due, including the preferred dividends. We're doing that and buying time to give David and his team the opportunity to go out and execute on what they believe they can. We've seen some of these are clearly one-time problems in terms of the fire, in terms of the supply chains, but also the longer term for growth, give them time to be the free cash flow machine that Q and H historically have been. Yeah, I think we'll pay them as they come due. We'll look at the opportunities, and it depends on what we see and our flexibility to go out and repurchase some of those instruments at below par. Oh, there's Rich right there. Yeah. Who'd you point at, Rich? Rich. Okay. I think that's Rich right there. That is. Yep. That T-shirt stands out. Yep. Sorry, did that for you today. I already gave you a prop this morning on it, Rich. I wore a T-shirt for you, Greg. You know, I guess a question really for John. I think probably everyone in this room sort of looks at Warner Bros. Discovery as an LBO gone bad, in the last few months. I guess just given sort of Tom's comments about sort of the outlook for the video business, and the headwinds video is facing or being a smaller business, as well as Disney, which seems to have had a lot of struggles recently, and I think a lot of investors have sort of soured in recent days, what gives you so much confidence? 'Cause it seems like you have a lot of conviction in what you've been saying. Why are you so convinced, and is it M&A related, or just what gives you that confidence in the story and how it fits into the next few years? Well, I think the number one thing that I think it gives me confidence is the management. I have enormous confidence in David Zaslav and his guys, having seen the integration of Scripps with Discovery a couple years ago. Number two, the balance sheet that they put together, 17-year average maturity, 4% cost of funding, very light near-term maturities. Number three is, at least as an investor, it's even in its absolutely worst year, it's generating a 10% cash return on its equity value. So to stay in as an investor and look for the future where the cash return is almost certain to dramatically increase is a pretty good upward pointed vector. I think the transition, you know, let's face it, everybody went for this mad Oklahoma land rush of streaming. I think Greg pointed out to this audience a year ago that was a fool's errand. Five years ago. I'm not gonna call AT&T management fools. They certainly went on an errand. They threw everything but the kitchen sink at it, and they put the run rate of the business in a little bit of stress. That said, it's still a business, even with all of those issues, that's generating meaningful free cash flow right now. The synergies that we predicted, I believe, are quite achievable, and those are not trivial. Those are, you know, I think now estimated at run rate $3.5 billion a year. Yes, we have a modestly shrinking linear business, which generates a lot of free cash flow. The model, the dual stream model, which we had a lot to do with creating, is gonna be hard to replicate. That was a very profitable and stable economic structure for content producers. Obviously, the public has shown an interest for random access and streaming. They've also shown a distaste for the overpriced sports rights parasitized big bundle. For a lot of consumers, they weren't necessarily bailing on the content that they liked to watch. They were bailing on the price tag when compared to what Netflix and others were offering for entertainment programming. The real challenge, I think, for the content industry is how to put their product in front of the consumer in an attractive way without having to buy through or buy around a very expensive bundle of content. You know, John McCain had it right about, I don't know, 10, 12, 15 years ago, when he wanted to force unbundling à la carte. We don't have this problem, by the way, in Europe, where sports has always been expensive sports has always been à la carte and has never been a burden on the television bundle for the typical viewer. This is a challenge in America. Sports has gotten to be somewhat of a tax on the public and has gotten to be perhaps prohibitively expensive. This is a real challenge. As long as there's competition amongst distributors, sports will have a disproportionate economic market power, and will continue to. I don't see an end to that. The other phenomenon that I think we have to look at is network neutrality essentially created a global superhighway for big tech, where they don't participate in any of the capital requirements that their burden places on the network. This is something that I think perhaps was a regulatory error. Let's say, for instance, that Facebook, Meta, I guess now, were to come and attach as an edge supplier to our networks, Meta with massive consumption of network capacity, a real latency challenges, and relatively few customers willing to buy it. Is that appropriate, essentially, that the distribution industry should eat and then have to recover that across its base of customers, when it's benefiting one particular edge supplier? I think there is a regulatory challenge here that eventually needs to be addressed. The one size fits all, everybody pays the same mentality, which is really what's created the power of sports economics, is perhaps something that ultimately needs to be addressed. Yeah. Maybe, John, kind of along those lines from one of our shareholders, observed that Netflix is particularly sticky. Do you have any comments on why this may be, and if you think their foray into sports rights is the best move for their shareholders? Well, I think, Reed Hastings, you know, his shareholders should build him a huge monument because he's done a fabulous job with that company. He got out in the lead, he saw the opportunity, and he exploited the opportunity, and he went for massive scale. He does have a revenue and scale advantage over the other streamers at this point. He was there early. He does an excellent job. His service is very convenient and easy to use, and a lot of people are regarding it now as a foundational programming service. I just attribute it to his excellent execution. I think his effort to essentially be the only entertainment service by broadening out and spending so much on so much content is not likely to be successful because there are just too many variant tastes. There's just too much content. I think when he started to see growth slow, even international growth slow, I think the message is there's gonna be more than one streamer. How profitable they are, I think will depend on the discipline that they exude in terms of controlling their costs and keeping their expected growth rational, and not throw too many Hail Mary passes. Clearly, there's gonna be a lot of experimentation in streaming with bundling, I think. The way I see it, Disney is attempting to have an internal bundle of three different streams serving perhaps three slightly different audiences. It may well be that streamers, I think that HBO Max is attempting to bundle with Discovery+ to see what kind of stability that creates. Sports has always been a way to share, shift, or market. If you can buy a big sports event exclusively, you will always gain customers. You have to chalk that up to marketing expense. In the long run, it seems to me that whoever has the best funnel to gain and the lowest churn will be the one that's the most profitable in the streaming world because marketing costs combined with fairly high churn rates is pretty brutal to long-term profitability as that business evolves. Hopefully, they don't listen to you, John. You know, I don't believe the willingness to pay for these services is infinite. You know, right now, people are experimenting with price. They're experiencing or experimenting with subsidizing with advertising revenue. The public's tolerance for entertainment programming, long-form scripted programming being interrupted with advertising and paying a subscription fee, I think is what's being evaluated now. Hopefully, they don't listen to you, John, 'cause we're huge beneficiaries on this side with Formula 1 for all these guys bidding against our content and seeing new guys enter. I'm hoping Reed heard the first part about how good he is and not the second part about bidding on sports. Thank you. You picking or am I? No, you are. Can you see? James. Yeah. Right. Close. Right there in the middle. Yeah. James, wanna put your hand up? No. Yeah, yeah. You can scream, whichever. No. Thanks. Greg, you mentioned that regarding the Live tracker creation, that this opens up some options that may not have been there prior to separating that out from Liberty SiriusXM. Can you give us some idea of what those might be? Could they include things like could SiriusXM now buy Liberty SiriusXM stock instead of their own, for example? I think Jennifer's here, so you can lean on Jennifer that she should be buying Liberty SiriusXM stock. That may make a ton of sense for SiriusXM, right? We're at 82%+ of SiriusXM at Liberty SiriusXM. We've said sooner or later, those are likely to be combined. If SiriusXM's choice is to buy stock in itself at 100% or at a 37% or maybe it's 38% or whatever the discount is, seems like buying it effectively through Liberty SiriusXM is more attractive. I think one of the other things we talked about or one of the other ideas I wanna put in your mind is at Liberty Live. We can do things perhaps there that build attractive assets that could eventually go into Live and fit well with Live, and some of those could be natural extensions of Live's business, whether it's facilities-based or services-based businesses around the concert, either concert halls or service companies that service concerts. You know, we're getting some visibility to that through Las Vegas and understanding what that takes and who the players are, and there could be synergistic assets that work in there as well. I think both sides of the house have more flexibility to do different things, and we'll look for those opportunities, particularly in this market, where a lot of that stuff's getting beaten up. Final one to Andy and Doug. David Zaslav is overpaid and arrogant. He has half the stock price, and while Scripps and Discovery may have done well, he's not producing movies. After Black Adam, he has no movies this year, and Warner Bros. is better off worth more alive than dead. I'm not sure that was a question, and this actually is the Liberty Media and Liberty companies. Thank you for the thought. I'll pass it on to David at our next Sirius board meeting. Doug in the middle there. Doug, yeah. Doug. Thank you. Greg, just following up on Liberty SiriusXM, are there any other steps that Liberty SiriusXM should or could take to make a deal down the road with SiriusXM easier? I think in August, you mentioned that, you know, debt might be an issue. Is debt paydown a you know sort of necessary or a key focus? You know, John, you mentioned earlier you thought streaming, you know, had to consolidate, and I'm curious which companies you expect to consolidate. We certainly. Let me just finish on Liberty SiriusXM, something that's actually relevant to this company and audience. Put that aside. I think there's, you know, we're over 80%. We could do a tax-free deal tomorrow with them. When I talk about the debt loads, you need to think if the two were combined, Liberty SiriusXM and SiriusXM, you need to think about what the combined debt load is, and we've eyed that carefully with the knowledge that SiriusXM is an incredibly stable, great free cash flow generator, low churn. We're certainly mindful of, you know, not incurring several billion dollars more dollars of debt between the two companies. I don't think there's anything needs to be done. We could affect that. We'll look at what opportunities are there, and as I said, stay tuned. John, you wanna talk more about who's gonna merge up with streaming? Are you selling Warner Bros. this morning or this afternoon? Sorry. Well, we can't sell Warner Bros. for at least two years because it was a tax-free spinoff, and you have to wait two years. I'm not wasting any energy on thinking about who Warner Bros. could merge with or what corporate transaction could take place there. Now, there are a ton of small streamers that are very specialized who might find ultimately that they're gonna have to consolidate into some of the bigger guys if their content is unique and relevant. At the moment, there's a lot of blood flowing down the gutters of people who are streaming. Some of them can afford it, and some of them can't. My guess is the ones who can't will ultimately have to look for some kind of consolidation or exit with their content. That's just sort of the law of nature, I guess. The only other thing I would say to the comment on Mr. Zaslav is, yes, on paper, he's way overpaid. Remember, almost all of his compensation's in the form of options that are priced at multiples of today's stock price. Unless the stock really performs, he's really not overpaid. Why don't you just let other people talk? Thank you. I'm glad John is not commenting on my compensation today, at least. Any other questions? Let's go over here. Thanks. Kutgun Maral with RBC Capital Markets. I wanna ask about fixed wireless. I think we're all aware of the fundamental technical limitations of the service, but at the same time, you know, the consumer adoption so far has been far greater than we expected. It seems like we've certainly maybe underestimated the near-term competitive threats. What gives you the confidence that we're not underestimating the long-term threats over there, and what the terminal penetration of the fixed wireless market could look like? Yeah. I think many observers were surprised at how fast fixed wireless rolled out. I don't disagree with that observation at all. I do think there are inherent limitations, both on the consumers who are gonna want it, what the performance will be, and the capacity of the mobile players. Hopefully, I've given you enough time, Tom, to have your succinct answer ready to go. I do think that, if you think about the passings that have been activated in fixed wireless, I'm shocked that the growth's so small. Because any new greenfield operator in an overbuilt environment, all the overbuilds I've ever seen, and competitive entrants, there's a sort of grass is greener market share shift of around 10% usually, very quickly. That tends to move back and forth and be kinda the hurdle rate that really, the differentiation in the product requires to get over. When I look at the passings and I look at the customers, I think that's not doing very well. Okay. Over here, Peter. Peter Supino with Wolfe Research. Thanks. Question goes back to the linear TV bundle. So when we reconvene here in 2025 or 2026, there might only be 50 million subscribers left. I'm wondering if you were running the NBA or the NFL, and it reached that level of scale, what might you do? Well, I'll think Adam Silver and Roger Goodell both done a pretty good job of looking across and exploiting cleverly how to distribute their product across a range. You know, frankly, smaller version, we had the same issue in F1. What point do you jump across and go primarily to a streaming platform here in the U.S.? I think you'll see them pick and choose and look for the opportunity when that scale and that access is wide enough. The NFL is particularly unique. Obviously, their strength and ability to draw people to a platform is stunning. So I wouldn't exactly worry that they're gonna have any shortage of opportunities, and people are gonna be willing to slice and dice and say, okay, I'll watch it here or I'll watch it there or I'll watch it. They'll pursue it, whichever platform it's on. NBA still strong. Not as strong, obviously, NFL, but they can draw a lot of fans. I don't know, John, what you might add. Yeah. I mean, this would be a great question for Chapek and ESPN, who an awful lot of Disney cash flow is dependent on ESPN. ESPN is probably the biggest single expense that a linear distributor has. They have the problem on the other side of the fence, which is, how do they replace that revenue stream if the bundle breaks down? It is gonna be interesting to watch. You could cut it both ways. You could say, if major sports leaves the exclusivity of linear television, does the drop in the cost, does the increased profitability of the bundle, from a distributor's point of view, more than offset the decline in glue that's driving the bundle? It's a conundrum for both sides, frankly. One of the reasons is very interesting. The reason why the cable industry didn't evolve into just streaming random access, à la carte menu on all of the traditional programming was contracts between the content providers and the distributors. When CNN+ was gonna be launched or was launched, it didn't include CNN, which is kind of curious. You would think, you know, if 40% of households don't have access to CNN because of cord cutting, that maybe they might include CNN in it. They could not contractually do it because of limitations they have with existing distributors. The whole legal contractual relationship between the distribution industry and the content guys has got to be renegotiated in a way in which people with good content will be able to provide it to the half of the country that's not currently able to receive it because of contractual limitations. The world will find another way to get the NFL. NFL's strong enough that they'll find ways to put together the whole universe, or the whole universe will find ways to get and distribute them. It's just not gonna be the case. You know, baseball's got challenges. In the L.A. market, what percentage can't see the game? That's a huge problem. The NFL, because of its national structure, will find a way around that problem. A lot simpler. Other question. Up here in the back, yeah. Jim McGovern, Regions Bank Senior Lender. Just thinking about CenturyLink, Lumen. This is a cable question. They just decided either for capital markets reasons or for execution reasons, we've got too much on our plate, and they decided to carve off to Brightspeed. What's different about Charter in either its access to capital or longer-term, or the ability to execute better management, top to bottom, that puts them in a different place? Just maybe the basis of my question is the penetration, if I understood the chart correctly, was 22%-26%, 20%-28%. No. Of its 55-odd million homes, its penetration for broadband is 55%, something like that. Right, Tom? I'll let Tom comment more on the operating side. Start with the financial side of Lumen. Looked at it a bunch. You know, limited free cash flow generator given the size of its dividend. Now they're restructuring that, but for a long time, very different position. You know, declining business, SPD, a declining opportunity there. Not really been able to grow or protect its consumer franchise, which doesn't have the kind of footprint. They do have an interesting fiber footprint, but when you weigh it all up, not a massive free cash flow generator with limited growth. It's a very different condition than what Charter has gone through, Tom. Right. We, you know, I'm sorry if I was unclear on the penetration issue, but, you know, we have infrastructure in front of 55 million homes, and we have 32 million customers. We have 55% penetration of the opportunity. Put another way, there's 45% of the country has a free, completely paid for cable system in front of them, and that's an opportunity to sell cable, and internet service and mobile service and all the products we offer. The penetration of 28% that I showed was our take of the total opportunity from a telecom spend per household, including mobile, not including video, and not including traditional telephony, just broadband and mobile. It just means that there's a lot more financial household spend opportunity for us to capture with the products that we sell than our traditional way of measuring penetration presents. That's what I was trying to say. Other question over here. We've got two in a row there. We'll keep the mics next to each other. I'm sorry. Yep, right there. On Liberty Live, I guess I know the intergroup interests are gonna be rationalized. I'm guessing, is that a source of capital that you can use at Liberty Live? Then I think both John and Greg have mentioned about using this vehicle alongside Live maybe for acquisitions in that kind of area. Is that kind of the mandate, or is it just broad Liberty opportunistic kind of find an opportunity and do it? Or is it because it is called Live. I'm just trying to get through that. Yeah. I think we're looking to capitalize it with, I think, around $400 million, and some of that will come from intergroup interest and some of that may come from foreign cash, but we'll balance that and set that out so it's appropriately capitalized. We have the ability to raise incremental capital through there or inject other forms of capital. The mandate for Liberty Live is gonna evolve. I'm saying the most obvious and interesting things, you know, relate to things that fit well with Live Nation, and we've talked to Michael about those kind of opportunities. I think there's plenty of those that are interesting. You know, you never wanna say never. No one probably thought we were gonna invest in broadband and into Charter incrementally through Liberty Interactive. We try and have a broad mandate across TMT. This is the kind of markets we like. Things go sideways for others, we try and get past our pain and find the opportunity. I think we've got a good place to focus there, things that are very logical, and that is an attractive space, all those around Live Nation, but I'm never gonna say never on anything else. One next door there, too. Yeah. Hey. GCI offers a different selection of speed, services, bundles, et cetera, versus operators in the lower forty-eight, and it's been an innovator for quite some time. To what extent should we view that network as or like a roadmap for Charter? You know, architectural differences, you know, is that a factor? Basically, what I'm getting at is, can Charter deploy DOCSIS for a $255 home pass? Well, I'll let Ron comment, but the conditions in Alaska, his competitive situation is very different than the lower 48, and the kind of network he has is very different than the lower 48. Yeah, we have some very unique advantages up there, starting with lesser competition. As I mentioned in my comments, we don't have fixed wireless because C-band was not auctioned off in Alaska, so there's no spectrum for fixed wireless. I don't think our technology plan differs very much from Tom's. I mean, we're looking at high split, migrating to DOCSIS 4.0. They probably have smaller cascades than we do. They may get to full duplex before we do. Our clear assessment is we can get 10 gigs down with the plant that we've got by the time we get to 4.0. I think Tom's talking about faster upstream speeds. We believe 10 down is more than enough to meet the consumer demand because today the consumer can't use more than 2.5 gigs in a house. The Plume Wi-Fi router, which is the state-of-the-art, has a port to plug in 2.5 gigs. You can't go any faster than that. You're buying 10 today, you're throwing 7.5 gigs away. I think Charter's plan, and Tom should comment, but I don't think it differs that much from ours, and I think they probably get ahead of us because they can do it more to scale. Yeah, I would agree that there aren't that many differences really. I mean, the density of Alaska and the density of our plant is significantly different, which, you know, means you use different techniques to get capacity out of your network, and you actually have higher costs on a relative basis for consumers when there's lower density in terms of capital investment. I agree, we're on, you know, in terms of what you can do with a network and how you can use the DOCSIS technologies and the evolutionary pathway that we've developed for DOCSIS is common. The capital costs for like environments in terms of density, and you've got some really unusual circumstances, and you evolved from a different topology than we did. In terms of future spend, I agree with you know, usage in the network is 14-to-one down versus up, and I don't see a significant product breakthrough that's gonna change that. I also agree, which is why I said earlier about having the best wireless Wi-Fi platform is really the key to our strategic success, I think, competitively in that you can't actually receive 10 gigs of product on any device that exists in the world. Most devices, even if you had the router, the device themselves, in fact, all devices can't deal with that kind of speed. There is no unless you've got, like as we do, 500 million devices, that speed gets distributed over a lot of devices, but the actual speed itself can't be used by a device. Okay, maybe one or two more, Courtney. All right. We may have an early adjournment for lunch or for post-lunch. Oh, there's one more. Oh, there's one here. Yeah. as my kids say, second lunch. I had a couple questions on Qurate. The first was, when you looked back over the last two years at data that you were looking all the time, and you sort of thought the customers were following traditional customers that you added, what mistakes do you think you made looking at them versus the separate evaluation now? Then I guess the second question would be, for your best customers, can you just sort of talk about any differences in churn and frequency of purchases, et cetera, between pre-pandemic, post-pandemic, and maybe how you're tracking the data to make sure you're getting, you think, a pretty accurate picture of what's going on? Thanks. David, do you wanna take that? Yeah. On the pandemic churn question, that was before my time. I'll hazard a guess, which is that when you actually look at the data for the pandemic customers, at first, they behaved a lot like our traditional customers. It took the ending of the pandemic, the change of behavior to then be able to see it in the trailing data that they actually were not our traditional customers. I think if you were trying to read it real time, as management then were doing, it was reasonable to look at the data as it existed at that time and say the early signs are this looks like a lot of our traditional customers. I think it's become clear once we've had some of those customers in the customer file for six, 12, 18 months, two years now, that they were really a different set of customers. I think the critical cut has been, are they engaging at all in our video commerce enterprise? A lot of those customers were digital-only customers who came to our website and did some shopping on our website. That's not really core to how we build deep relationships with customers. People who came and experienced a lot of our core value proposition stayed with us. In terms of our best customers, we have about as good a best customer file as exists in retail. They're very loyal, they're high spend, they're high frequency. We've seen around the edges for a while. We saw, especially during the Rocky Mount fire, where we had delivery challenges, we saw a little bit of weakness, but you're still seeing retention rate well into the 90s for our best customers. You're still seeing average spend grow per customer with our best customers. You're seeing average number of minutes watched grow per customer with our best customers. That still creates an incredibly solid base for the business. Great. We're done? Mm-hmm. Let me thank you for coming to Liberty's Investor Day 2022. Appreciate your interest in our companies. Appreciate your support. Hope to see you again next year, if not sooner. Thank you.