Netflix Co-CEO Ted Sarandos says streaming growth is falling short of targets
On October 1, 2026, Netflix Inc. Co-CEO Ted Sarandos acknowledged during the Bloomberg Screentime conference in Los Angeles that the streaming giant’s overall growth is falling short of his targets. Citing a modest two percent increase in viewership engagement during the first half of 2026 alongside ongoing revenue expansion, Sarandos outlined strategic pivots into live programming and expanded theatrical releases to boost platform momentum.
Evaluating Growth Metrics and Live Programming ROI
Addressing an audience of industry professionals on Wednesday, Ted Sarandos stated that Netflix is actively working to accelerate expansion despite existing market headwinds. To counteract this deceleration, Netflix allocates roughly 5 percent of its $20 billion annual content budget to live programming, including high-profile NFL games.
While live events generate about 1 percent of overall viewership, Sarandos noted that their primary utility lies in driving subscriber sign-ups, lowering churn, and appealing to advertisers.
Studio Consolidation and Acquisition Bids
The conversation at the Bloomberg Screentime event also touched upon the competition and recent studio consolidation. Discussing the merger between Paramount Skydance and Warner Bros. Discovery—which received judicial approval on October 1, 2026—Sarandos addressed Netflix’s prior, temporary winning bid for Warner Bros.
Asked if he regretted the move, Sarandos maintained that the initial valuation was disciplined.
Theatrical Strategy and Content Expansion Plans
To engage its 325 million subscribers and bolster monetization, Netflix is broadening its release strategies. This follows a slate of more than 30 movies given theatrical releases in the previous year.
Addressing creator relationships and partnerships with YouTube talent, Sarandos clarified that Netflix remains firmly anchored in the professionally produced content business rather than user-generated content. He also dismissed the notion of introducing a completely ad-free or free ad-supported streaming television (FAST) tier, stating it would cannibalize the core product.
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