Business · Companies · 55 mins ago
Netflix says its strategy is unchanged but US content needs better execution
After Netflix reported its third-quarter results, co-CEO Ted Sarandos said US content needs better execution because growth there is slower than the company wants.
He said programming from regions including Asia-Pacific and Latin America is largely working and helping drive engagement and subscriber growth.
Netflix says its overall strategy is unchanged, combining original shows and films with licensed programming and a growing live business.
The company has named former Disney and Fox executive Peter Rice as its new chief content officer, and he will help lead the effort to strengthen its programming.
Co-CEO Greg Peters said Netflix wants to take its content slate from very good to great, while the company has also cut roughly 1,000 jobs.
Revenue growth has slowed for three consecutive quarters, and Netflix shares fell 6% in after-hours trading after its results.
Executives said they expect strong revenue growth into 2027, supported by member growth, pricing and advertising, and said the programming slate looks stronger this fall and into next year.
Netflix co-CEO Ted Sarandos said the company’s strategy is unchanged but that its US content needs better execution.
Sarandos said Netflix’s content outside the United States is largely working, while US growth is slower than the company wants.
Co-CEO Greg Peters said Netflix aims to take its content slate from very good to great.
Netflix reported third-quarter revenue growth of 11.8% to $12.87 billion, its slowest growth rate in almost three years.
The company forecast fourth-quarter net income and earnings per share below analysts’ average expectations.
- Who
- Netflix co-CEO Ted Sarandos said the company needs better execution in the US. Co-CEO Greg Peters also discussed the content slate.
- What
- Netflix said its strategy is unchanged, while acknowledging that its US shows and films need improvement.
- When
- Tuesday, October 20, 2026, after Netflix released its third-quarter results.
- Where
- On a company earnings call. The call’s location is not stated.
- Why
- Sarandos said US content is not growing as fast as Netflix would like, while content in other regions is largely working.
Netflix executives
Wall Street analysts and investors
Strategy
Netflix executives
Executives said there is no need for a fundamental shift and that Netflix should focus on better execution.
Wall Street analysts and investors
Analysts and investors have questioned how Netflix can restore growth and sustain engagement.
Content and growth
Netflix executives
Netflix said its global content is largely working, while US content needs better execution.
Wall Street analysts and investors
Analysts have raised concerns about engagement growth and competition from services such as YouTube.
Netflix announced changes to its content leadership and cut roughly 1,000 workers.
Netflix released its third-quarter results and executives discussed the company’s strategy on an earnings call.
Netflix shares fell nearly 6% in after-hours trading, to $64.66, according to InfoMoney.
- Third-quarter revenue
- $12.87 billion, up 11.8% year on year
- US and Canada revenue share
- About 44% of Netflix revenue, or $5.6 billion, in the quarter
- Fourth-quarter net income forecast
- $2.79 billion, below analysts’ average estimate of $3.07 billion
- Fourth-quarter earnings-per-share forecast
- $0.67, below analysts’ average estimate of $0.73
- Workforce cuts
- Roughly 1,000 workers, about 6% of staff, according to InfoMoney
6 sources
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What people are saying
Our business and our business flywheel are working. There is no need for a fundamental shift in the strategy. We do need better execution in the U.S.
There is a lot to be excited about, but I know that we could do better
Sei que podemos fazer melhor
from very good to great