Netflix co-CEO flags slower engagement growth

Speaking at Bloomberg’s Screentime event on Sept. 30, 2026, Netflix (NFLX) co-CEO Ted Sarandos said the company is not growing as quickly as he wants and that management is working to make growth move faster. He referred specifically to overall engagement on the service, measured by viewing activity across Netflix’s catalog.

Sarandos said that Netflix viewership grew about 2% in the first half of 2026. The figure underscores that the platform is still expanding usage, but at a pace he characterized as slower than desired.

Even as he highlighted the softer engagement trend, Sarandos described the underlying business performance as strong. He said that in the most recent quarter Netflix delivered double-digit revenue growth in every region, indicating that financial results remain robust despite the moderation in viewing growth.

Sarandos outlined how live programming fits into Netflix’s efforts to boost engagement. He said the company currently allocates roughly 5% of its content investment to live events and other live formats. These live offerings account for about 1% of total viewing hours on the platform.

While the share of watch time is relatively small, Sarandos pointed to live programming as a lever the company can use to influence subscriber behavior. The data he cited frames live content as a targeted investment area within a much larger on-demand portfolio.

The remarks suggest that Netflix is using live formats as one tool among several to address slower growth in engagement, while keeping most of its spending focused on traditional series and films. The company is testing how live events can support its broader objective of sustaining subscriber interest and activity.

Sarandos also commented on Netflix’s approach to pricing and advertising. He said the company will not offer a fully free, completely ad-supported tier. In his view, such an option would cannibalize Netflix’s core product, which is built around paid subscriptions.

By ruling out a free ad-only tier, management signaled a continued focus on protecting the value of the existing subscription model. The decision indicates that, even as Netflix experiments with different formats and revenue streams, it plans to keep its main emphasis on paying customers.

Taken together, Sarandos’s comments highlight a balance between acknowledging slower engagement growth, emphasizing solid revenue momentum, and refining the mix of content and pricing choices without undermining the core business.