Co-CEO says Netflix 'not growing as fast as I want'
LOS ANGELES, United States — Netflix co-CEO Ted Sarandos said that the streaming giant's growth fell below expectations, adding that live shows could provide a welcome boost.
Netflix posted a growth rate of 13.4 percent between April and June — the lowest in nearly three years — and saw a modest two percent rise in viewing hours in the first half of the year.
"Overall, we're not growing as fast as I want us to," Sarandos said Wednesday during the annual Bloomberg Screentime conference in Los Angeles. Live programming could "move the needle quite a bit on that number," the co-CEO added.
The production of live shows takes up five percent of Netflix's annual $20 billion (P1.25 trillion) content budget and generates just one percent of viewing — but Sarandos said "they do a very different job."
"They generate a lot of signups. They're really effective for signup retention, advertising," he said.
Related: Community rooted, community grown: Bukidnon couple builds farm on shared success
Films and television series will remain Netflix's priority because "We are in the professionally produced content business," the co-CEO said.
Asked about Netflix's attempt to acquire Warner Bros. Discovery, Sarandos said he went into and came out of the negotiations with no regrets, saying the plan was "solid."
Netflix had joined the bidding for control of a stable of assets that includes Warner Bros. Pictures, CNN, and the HBO Max streaming service, but lost to an offer from Paramount Skydance.
A US federal judge approved a settlement on Wednesday that clears the way for the takeover of Warner Bros. Discovery by Paramount.
RELATED: Brewed with purpose: How ex-OFWs built a coffee community in Bukidnon
