Netflix Isn’t Growing Fast Enough, Sarandos Says

We are growing engagement. Uh, so we're growing on 200,000,000,000 hours of watching. We grew 2%, you know, in our last announcement by about 2% is not what people are hoping for out of you right there used to double digit growth in at least and certainly in revenue and to some extent even in viewership they had expected. This is this is my point about the growth in general. Yes. Overall, we're not growing as fast as I want us to, and we're working on and making that move faster. We are, though, also doing things that create a lot of headwind to that number. Meaning when we do live programming on Netflix, which is a relatively new thing. Um, we spend about 5% of our content budget on live events. They generate about 1% of our watching right now. They are, but they do a very different job. They generate a lot of signups. They're really effective for signup, retention, advertising, all those things that they do. But it creates engagement headwind, uh, in how you invest against it. Um, and remember when I say we grew 2%, that's an easy number to sneeze at. But it's through all the growth of live. It's through incredible headwinds from things like the World Cup and world sports and all those things that are going on too. So it is a we are growing the business. We want to keep growing it faster. This past quarter, we did double digit revenue growth in every and every region of the world. So the businesses great and growing fine. Um, I do I mean, if you ask me when if we were growing at 20%, I'd be telling you, I wish we were growing faster. Right? So but when you said you wish you were growing faster and we're working on it, what are the things that you are working on to kind of re accelerate that, that growth? Well, if these are some of the things are in the expansion of what we do. So like was an expansion of what we did that didn't necessarily bring more growth engagement, but it brings very valuable engagement. So it's not a mystery that all engagement is not equal, because it's you probably are not surprised to know that an hour of Judge Judy in the middle of the day does not generate as much revenue as an hour of NFL football. And so those are some CPM charts recently that showed what you make per view versus what YouTube makes per view. And yours is higher. Yeah, we generate more. We monetize better. Our programming monetize is better. Now we do. We're looking constantly about how do we do things to bring more value to the members, more things to watch, more ways to watch all those things. So that is some of these things that are and I don't want to over characterize things like podcast and those things because they're very small investment and very small additions to what we're doing. Um, the best the vast majority of what we spend on is professionally made movies and television series and games. Did you ever buy one of the big studios? Take two. Microsoft seems to be unhappy with that. Well, as you know, we're not we have not been traditionally big buyers. Um, the Warner Brothers notwithstanding, um, that we've not really been we've been them builders from the script, from scratch. So I do think we've looked at some we have built some worked with some of the smaller studios and programmers and developers and there's, uh, like this of those things come the, the big problem with when you do these deals, uh, and the reason why I go back, why the Warner Brothers was attractive, you know, I said we were not going to do that is it's very rare that so that this kind of asset was so clean. It was just you're just buying just the things we wanted to buy. And so we were able to very easily look at this and say, how will this add value to Netflix and not destroy value in other ways? How do you take this growth engine and have it supercharge our growth engine? And for us, the ability to do that made that deal super unique. We're not looking for the next opportunity to backfill that deal, because we are our plans. And how we're going to grow is is primarily organic and will look for opportunities that complement the business as we go to game. That's for games to.