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Netflix Co-CEO Admits Growth Slowdown, Eyes Live Programming for Boost
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Storyboard•03-10-2026, 11:01
Netflix Co-CEO Admits Growth Slowdown, Eyes Live Programming for Boost
- •Netflix co-CEO Ted Sarandos acknowledged the streaming platform's engagement growth has slowed, with viewing up only 2% in the first half of 2026.
- •Sarandos stated Netflix's growth rate between April and June was 13.4%, its lowest in nearly three years, falling below his expectations.
- •Live programming, including NFL games, is a key area Netflix is expanding into to increase engagement, despite currently contributing only 1% of viewing from 5% of content spending.
- •Sarandos believes live content drives new sign-ups, retains subscribers, and attracts advertisers, performing well despite overall slower growth.
- •Netflix remains focused on professionally produced content and has no immediate plans for a completely free, ad-supported tier, nor is it moving into user-generated content.
Key Questions Answered
Ted Sarandos acknowledged that Netflix's engagement growth has slowed, noting that overall viewing rose by only 2% during the first half of 2026 and stating that the pace of growth is below his expectations.
Netflix spends about 5% of its $20 billion annual content budget on live programming, which accounts for around 1% of viewing. Although its share of viewing is small, Sarandos stated that live shows help drive new sign-ups, retain subscribers, and attract advertisers.
Sarandos stated that he had no regrets about the negotiations and described Netflix's approach as sound. Netflix had reached an agreement before Paramount Skydance made a higher offer, and a US federal judge subsequently approved a settlement clearing the takeover.
