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Netflix has a major problem, according to the $281 billion<\/a> company\u2019s co-CEO, Ted Sarandos.\u00a0<\/p>\n \u201cOverall, we\u2019re not growing as fast as I want us to, and we\u2019re working on making that move faster,\u201d Sarandos said at a Bloomberg conference<\/a> in Los Angeles this week. \u201cWe are, though, also doing things that create a lot of headwind to that number.\u201d<\/p>\n Sarandos disclosed that Netflix\u2019s global engagement rose just 2% in its latest reported period, even though revenue continued to grow at double-digit rates in every region. Netflix is the world\u2019s largest streaming service, according to Forbes<\/em><\/a>.\u00a0<\/p>\n To rekindle growth, Sarandos told Bloomberg that Netflix is pushing beyond its traditional on-demand mix of scripted films and television and pushing into live entertainment, including sports, wrestling, comedy and major cultural events. He said that the company devotes 5% of its approximately $20 billion annual content budget, about $1 billion, to live programming.<\/p>\n The strategy is not designed to maximize hours watched; live shows account for only about 1% of Netflix viewing. Instead, Sarandos said that they serve a different commercial purpose. They attract new subscribers, give existing customers a reason to stay and create more valuable inventory for advertisers.<\/p>\n Live shows can help Netflix feel less like a library people visit intermittently. They offer a potential way to reduce churn and broaden the business beyond its historical reliance on movies and series.\u00a0<\/p>\n Netflix is also widening its theatrical ambitions and promoting movies with major built-in audiences.\u00a0<\/p>\n Sarandos said Greta Gerwig\u2019s Narnia: The Magician\u2019s Nephew <\/em>will receive a wide theatrical release in 2027 before arriving on Netflix, followed later that year by the animated Charlie and the Chocolate Factory<\/em>.\u00a0<\/p>\n According to Deadline<\/a>, Netflix has planned longer periods of time that movies will be exclusively showing in theaters before they become available on the streaming platform. Netflix plans to exclusively show Narnia<\/em> in theaters for 50 days and Charlie<\/em> for 47 days, substantially longer than the limited runs traditionally associated with Netflix originals.\u00a0<\/p>\n Sarandos said the sequel to KPop Demon Hunters<\/em> will get an even larger rollout. He told Deadline that audiences should expect a \u201cvery broad\u201d theatrical debut for the follow-up, which he said would be a \u201cbig, broad, global\u201d release.<\/p>\n Netflix appears to see four-quadrant movies<\/a>, or films capable of attracting children, parents, younger adults and older viewers, as especially suited to the big screen. KPop Demon Hunters<\/em> falls under that category, Sarandos told Variety<\/a> <\/em>last month.\u00a0<\/p>\n He added that Netflix released more than 30 films in theaters last year, tailoring each run by title, city, marketing spend and number of days in theaters.\u00a0<\/p>\n Netflix is expanding its use of AI to make film and TV production faster and less expensive.<\/p>\n In March, the company acquired InterPositive<\/a>, an AI filmmaking technology firm founded by Ben Affleck, for $587 million. The technology targets mainly post-production work, such as adjusting color, adding visual effects and reframing shots. It isn\u2019t capable of generating an entire film from scratch.\u00a0<\/p>\n On Netflix\u2019s second-quarter earnings call<\/a> in July, Sarandos said Netflix had used AI on about 300 titles for planning and visual effects.<\/p>\n<\/p><\/div>\n Netflix has a major problem, according to the $281 billion<\/a> company\u2019s co-CEO, Ted Sarandos.\u00a0<\/p>\n \u201cOverall, we\u2019re not growing as fast as I want us to, and we\u2019re working on making that move faster,\u201d Sarandos said at a Bloomberg conference<\/a> in Los Angeles this week. \u201cWe are, though, also doing things that create a lot of headwind to that number.\u201d<\/p>\n Sarandos disclosed that Netflix\u2019s global engagement rose just 2% in its latest reported period, even though revenue continued to grow at double-digit rates in every region. Netflix is the world\u2019s largest streaming service, according to Forbes<\/em><\/a>.\u00a0<\/p>\n<\/p><\/div>\nOther aspects of Netflix\u2019s strategy to grow quickly<\/h2>\n
AI investments<\/h2>\n
Key Takeaways<\/h2>\n
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