Netflix co-CEO Ted Sarandos has acknowledged a Netflix growth problem, telling a Bloomberg conference in Los Angeles that the company is not expanding as quickly as he would like. Despite being the world’s largest streaming service and valued at about $281 billion, Netflix saw global engagement rise just 2% in its latest reported period, even as revenue kept growing at double-digit rates in every region.
Betting Big on Live Entertainment
To speed things up, Netflix is moving beyond scripted films and series into live sports, wrestling, comedy and major cultural events. Sarandos said roughly 5% of the company’s $20 billion annual content budget, about $1 billion, now goes to live programming. Live shows make up only about 1% of viewing, but they draw new subscribers, give existing members reasons to stay and offer advertisers more valuable inventory.
Bigger Screens, Longer Theatrical Runs
Netflix is also rethinking its approach to cinemas. Greta Gerwig’s Narnia: The Magician’s Nephew will get a wide theatrical release in 2027, running exclusively in theaters for 50 days before streaming. The animated Charlie and the Chocolate Factory will follow with a 47-day window. A sequel to KPop Demon Hunters is expected to receive an even broader global rollout. Sarandos said the company released more than 30 films in theaters last year, tailoring each run by title, city and marketing spend.
Artificial intelligence is another pillar of the plan. In March, Netflix acquired Ben Affleck’s AI filmmaking firm InterPositive for $587 million. The technology focuses on post-production tasks such as color adjustment, visual effects and shot reframing rather than generating films from scratch. Sarandos said on the July earnings call that AI had been used on about 300 titles.