Netflix Growth Slows to 2% as Co-CEO Admits Disappointment

Netflix co-CEO Ted Sarandos has acknowledged the company's slowed growth in engagement, with viewership growing only 2 percent over the first half of 2026. Sarandos stated that the company is not growing as fast as he wants it to, and is working to improve its growth rate.

The streaming giant has been investing in live programming, which currently accounts for about 5 percent of its content investment and generates around 1 percent of viewership. However, Sarandos believes that live programming helps to reduce churn and is attractive to advertisers, making it a valuable addition to the platform.

Despite the slowed growth, Netflix had a significant 200 billion hours of watching in its last reporting period. However, the company faced 'incredible headwinds' from events like the World Cup during this time.

Sarandos also discussed Netflix's decision not to pursue a free, ad-supported tier, and stated that the company will focus on its professionally produced content business. He also addressed the company's bid for Warner Bros., stating that he does not regret the decision and believes it was a solid plan.

## What's Next The company's focus on live programming and professionally produced content will be key to boosting engagement and driving growth. With the streaming market becoming increasingly competitive, Netflix will need to continue to innovate and adapt to changing viewer habits in order to remain a leading player.

## Context The slowed growth of Netflix's engagement is a significant concern for the company, as it has been a key driver of its success in recent years. The company's decision to focus on engagement rather than subscriber growth has also led to increased scrutiny from investors and the media. As the streaming market continues to evolve, Netflix will need to balance its investment in new content and features with the need to drive growth and engagement.