Netflix's Ted Sarandos Reveals Slower Growth Amid AI Push

Netflix Co-Chief Executive Officer Ted Sarandos stated that the company is not growing as quickly as anticipated, as it ramps up spending on live programming, theatrical releases, and artificial intelligence to engage its 325 million subscribers. This announcement was made on Wednesday at the Bloomberg Screentime conference in Los Angeles.

Sarandos revealed that Netflix is allocating approximately 5% of its $20 billion content budget, or about $1 billion, to live programming. Despite a 2% increase in engagement during the latest reporting period, Netflix's revenue has grown at a double-digit rate across all regions.

Upcoming theatrical releases include "Narnia" and "Charlie and the Chocolate Factory." Netflix has also acquired AI filmmaking technology firm InterPositive for $587 million to enhance its production strategy, deploying generative AI across various stages of film and television production. Sarandos mentioned that Netflix is not currently pursuing acquisitions to replace its unsuccessful attempt to acquire Warner Bros.

Discovery’s studios, focusing instead on organic growth.