Netflix co-CEO Ted Sarandos has acknowledged that his streaming service is growing slower than desired, with viewership increasing by only 2% in the first half of 2026. He stated the company is actively working to accelerate growth, particularly through expansion into live programming. This admission comes at a significant moment for the streaming industry, with the judicial approval of a major $111 billion merger between Paramount, Skydance, and Warner Bros. Discovery, which presents a potentially formidable competitive threat to Netflix's market position.

Netflix is investing approximately 5% of its $20 billion annual content budget into live programming (notably NFL games), though this currently generates only around 1% of total viewership, suggesting relatively modest direct returns. However, live programming proves valuable for acquiring new subscribers and reducing churn, with advertisers showing strong interest in these offerings. Sarandos defended Netflix's decision not to pursue the full Warner Bros. Discovery acquisition, saying they paid the maximum price that would return value to shareholders. He remained cautious about the consolidated marketplace, noting uncertainty about whether the new mega-merger would strengthen or weaken overall industry competition, whilst also confirming that Netflix will remain focused on professionally produced content rather than user-generated content and will not introduce a free ad-supported tier.