Netflix is still one of the world’s biggest streaming companies, but its co-CEO Ted Sarandos says the entertainment giant has a problem that needs attention: the company is not growing as quickly as he wants.
Sarandos made the remarks at Bloomberg’s 2026 Screentime conference in Los Angeles, where he discussed Netflix’s growth strategy and the challenges facing the $281 billion company.
“Overall, we’re not growing as fast as I want us to,” Sarandos said, adding that the company is working to accelerate its growth.
The concern comes as Netflix’s audience engagement has shown signs of slowing. The company recorded only a 2% year-over-year increase in viewing during the first half of 2026, even as its revenue continued to grow at double-digit rates across its regions.
For Netflix, the challenge is not simply about making more money.
The company also needs to keep audiences watching and give existing customers enough reasons to remain subscribed.
One of the ways Netflix is attempting to address this is by expanding into live programming.
Sarandos said Netflix is putting about 5% of its roughly $20 billion annual content budget into live programming, amounting to around $1 billion.
Its live offerings include sports, wrestling, comedy and major cultural events.
However, live programming currently represents only about 1% of Netflix viewing.
Sarandos explained that the strategy is not necessarily about making live content the biggest part of Netflix’s viewing figures.
Instead, the company sees live events as a way to attract new customers, retain existing subscribers and create more opportunities for advertisers.
The move also reflects how Netflix is trying to evolve beyond its traditional model of offering films and television shows that viewers watch whenever they choose.
Live events, by contrast, can give subscribers a reason to open the platform at a particular time and return more frequently.
Netflix is also expanding its approach to theatrical releases as it looks for additional ways to grow its entertainment business.
The company plans wider cinema releases for major titles, including Greta Gerwig’s Narnia: The Magician’s Nephew, which is expected to receive a theatrical run in 2027 before arriving on Netflix.
The company has also been increasing its use of artificial intelligence in production.
Sarandos previously said Netflix had used AI across hundreds of titles for areas such as planning and visual effects, while the company has also invested in AI technology aimed at making production and post-production more efficient.
For Netflix, the bigger issue is therefore how to maintain momentum as the streaming market becomes increasingly competitive.
The company has already moved beyond relying solely on subscriber growth, with advertising, live programming, theatrical releases and new technology becoming increasingly important parts of its broader strategy.
Sarandos’ comments suggest that Netflix is not facing a collapse in its business.
Rather, the company is looking for ways to increase the pace of growth and keep its massive global audience engaged.
With billions of dollars being committed to content every year, the pressure is now on Netflix to ensure that its investments translate into stronger engagement, customer retention and continued revenue growth.
