Netflix co-CEO Ted Sarandos addressed the streaming giant’s current trajectory at Bloomberg’s 2026 Screentime event on Wednesday, offering a candid assessment of the company’s growth, its strategic pivot toward live events, and its stance on the evolving creator economy. While the service remains a titan of the entertainment industry, executives are clearly looking for new levers to pull as the market matures.
## Navigating a Plateau in Engagement
The headline from Sarandos’ appearance was a rare admission regarding the company’s internal metrics: viewership growth in the first half of 2026 reached a modest 2 percent. For a company that has built its reputation on relentless upward momentum, this figure highlights the challenges of scale in a saturated streaming environment.
“Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” Sarandos remarked. Despite this deceleration, he maintained a confident outlook, reiterating that the underlying business model remains robust and healthy. However, the message was clear: Netflix is actively exploring ways to reignite consumer engagement to better justify its current valuation and subscriber footprint.
## The Strategy Behind Live Programming
One of the most significant shifts in Netflix’s strategy under Sarandos has been the move into live sports and events, most notably via high-profile NFL partnerships. According to the co-CEO, live programming represents roughly 5 percent of the company’s total content spend but accounts for only about 1 percent of overall viewership.
While those numbers might seem inefficient for a platform built on binge-watching, Sarandos argued that raw hours of consumption aren’t the primary goal of live TV. Instead, these events serve as high-impact tools for subscriber acquisition and churn reduction. Live content creates “must-watch” moments that keep users logged in and paying for the service, while also providing a lucrative environment for advertisers who crave real-time audiences.
## Clarifying the Stance on Creators and Consolidation
As Netflix looks to the future, it is frequently compared to YouTube, yet Sarandos was quick to draw a hard line between the two. When asked about Netflix’s recent deals with individual creators, he clarified that the company is not pivoting to user-generated content (UGC).
“We’re in the professionally produced content business,” Sarandos stated. He explained that Netflix is happy to partner with creators who are producing high-quality, professional-grade work, but the goal is to monetize that content, not to become a repository for the broader creator population.
Sarandos also touched upon the broader tech and media landscape, specifically the recent consolidation moves involving Warner Bros. Discovery and the Paramount-Skydance merger. Addressing the intense competition, he remained unfazed. When pressed on whether he regretted missing out on a potential acquisition of Warner Bros., Sarandos held his ground, noting that Netflix’s initial bid was calculated based on what they believed would return maximum value to shareholders. Regarding the potential threat of a combined media conglomerate, he took a wait-and-see approach, suggesting that merging two entities doesn’t automatically guarantee a stronger market position.
## Rejecting the Free-Tier Model
Finally, Sarandos definitively ruled out the possibility of an entirely free, ad-supported tier for the platform. While competitors have experimented with various pricing structures, Sarandos remains firm that such a model would “cannibalize the core product.” For now, Netflix intends to maintain its focus on its existing subscription tiers, doubling down on premium, professionally produced content to drive growth. As the industry faces a cooling period in viewership, Netflix is betting that its current balance of high-end original series and strategic live events will be the key to accelerating momentum once again.
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