Ted Sarandos Admits Netflix Is "Not Growing as Fast as I Want Us To"
Netflix Co-CEO Ted Sarandos admitted the company is "not growing as fast as I want us to," citing a growth rate of 13.4% between April and June, the lowest in nearly three years. While first-half viewing rose 2%, Sarandos views this pace as insufficient. To accelerate growth, Netflix is allocating approximately 5% of its $20 billion content budget to live programming. Sarandos believes live content can improve advertising, retention, and sign-ups, despite currently accounting for only 1% of total viewing.
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- ✓ Ted Sarandos stated Netflix is "not growing as fast as I want us to."
- ✓ Netflix's growth rate between April and June was 13.4%, its lowest in nearly three years.
- ✓ Netflix is spending about 5% of its $20 billion content budget on live programming.
- ✓ First-half viewing for Netflix rose 2%.
What changed
Ted Sarandos explicitly acknowledged that Netflix's current growth rate is failing to meet his ambitions.
Live updates
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Netflix Co-CEO Ted Sarandos Says Growth Is Slower Than Desired
Netflix Co-CEO Ted Sarandos admitted the company is "not growing as fast as I want us to," citing a growth rate of 13.4% between April and June, the lowest in nearly three years. While first-half viewing rose 2%, Sarandos views this pace as insufficient. To accelerate growth, Netflix is allocating approximately 5% of its $20 billion content budget to live programming. Sarandos believes live content can improve advertising, retention, and sign-ups, despite currently accounting for only 1% of total viewing.
Why it matters
The company faces a competitive environment including a $111 billion rival merger. This growth slowdown comes as Netflix explores strategies to improve numbers for its $281 billion company. Market reaction has been volatile, with stock testing a 2021 peak near $68.
What is confirmed
- Ted Sarandos stated Netflix is "not growing as fast as I want us to."
- Netflix's growth rate between April and June was 13.4%, its lowest in nearly three years.
- Netflix is spending about 5% of its $20 billion content budget on live programming.
- First-half viewing for Netflix rose 2%.
- Live programming accounts for 1% of Netflix viewing.
Still unconfirmed
- Netflix stock lost nearly 50% of its value in a year.
- Netflix is facing a $111 billion rival merger.
What to watch next
- October 20 earnings report
- Updates on live programming's impact on sign-ups and retention
- Further comments on the Paramount-Warner Bros. competition
confidence 90%Sources used for this update (21)
- The Hollywood Reporter — Ted Sarandos Admits Netflix Is "Not Growing as Fast as I Want Us To"
- variety.com — Does Netflix's Ted Sarandos See Paramount-Warner Bros. As Competition?
- Bloomberg.com — Netflix ‘Not Growing as Fast as I Want,’ Co-CEO Sarandos Says
- Seeking Alpha — Netflix Co-CEO Sarandos says growth slower than desired, touts live content (NFLX:NASDAQ)
- imdb.com — Netflix’s Ted Sarandos on If He Sees Paramount-Warner Bros. As Competition, and If He Courted Casey Bloys: ‘We Had a Very Well-Publicized Lunch’
- Deadline — Ted Sarandos Has No Regrets Over WB, Talks Overall Deals & Casey Bloys
- www.storyboard18.com — Netflix co-CEO Ted Sarandos admits “we’re not growing as fast as I want us to”
- www.entrepreneur.com — Netflix Co-CEO Says This Is a Major Problem With the $281 Billion Company
- finance.yahoo.com — Netflix Stock Lost Nearly 50% of Its Value in a Year. Will It Keep Falling?
- www.hollywoodreporter.com — Ted Sarandos Admits Netflix Is "Not Growing as Fast as I Want ...
- theprint.in — Netflix ‘not growing as fast as I want', says co-CEO Sarandos
- www.straitstimes.com — Co-CEO says Netflix ‘not growing as fast as I want’
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