Theodore Sarandos said original content and live events are key to subscriber growth.

  • Sarandos said Netflix plans to retain subscribers by regularly releasing original films and live events. 
  • Sarandos said live sports attract new subscribers and boost ad revenue.
  • Netflix beat Q3 earnings estimates with $0.87 per share on $12.9 billion in revenue but issued a weak Q4 outlook. 

Netflix Inc. (NFLX) stock tumbled overnight as investors weighed slowing revenue growth against co-CEO Ted Sarandos's strategy to retain subscribers and attract new viewers. 

Sarandos stressed exclusive programming and live sports as key tools for making Netflix an essential part of consumers' entertainment budgets.

Netflix stock traded over 5% lower overnight Tuesday and is on track for a weekly loss. 

Original Content Remains Central To Netflix’s Strategy 

Speaking during the fiscal third-quarter (Q3) 2026 analysts' call, Sarandos pointed to a steady stream of original productions and exclusive live programming.

Netflix wants to maintain a consistent release schedule, giving subscribers fresh content to watch throughout the year. Sarandos said the company must deliver both quality and volume to meet audience expectations in an increasingly crowded streaming market.

“We want to be the must-have entertainment service, the first one members check for a great series or a great film and the last service they'd ever cancel,” said Sarandos.

“Now the anchor of that strategy are the Netflix Originals, differentiated, exclusive, ambitious, professionally produced series and films and live events. Now we've oriented the market to expect something great and new to watch every week, so we have to deliver on quality and quantity always.” 

Live Events Help Attract Viewers For Netflix

Sarandos pointed to major sporting events, including the Canelo-Crawford boxing match and NFL and MLB programming, as ways to capture attention amid the abundance of entertainment choices. 

“And they stand out. They drive new membership. They add fuel to our ad revenues. They please our existing members, and they just generally enhance the value of Netflix.”

The company is also expanding its catalog through partnerships with outside entertainment providers. Agreements involving Sony (SONY), Disney (DIS), Universal and other studios help complement Netflix's original productions.

“Now all that said, it's really important to remember, roughly 95% of our spend and nearly all of our revenue is focused on that core where we see a long runway for future growth,” added Sarandos.

Slowing Revenue Growth Puts Pressure On Netflix 

Netflix reported Q3 earnings of $0.87 per share, beating Wall Street’s estimate of $0.82, according to Fiscal.ai. Revenue reached $12.9 billion, in line with expectations, but the company gave a weaker Q4 sales outlook. Netflix is battling slowing revenue growth for the fourth straight quarter as it faces rising competition and works to attract more viewers and grow its advertising business. 

To get its operations in order, Netflix slashed about 1,000 jobs last week. 

“The company needs a mandate that requires the whole organization to ask hard questions about where can we be more efficient, where can we make tough decisions about where we can trim or redirect how we're investing,” said Co-CEO Gregory Peters.

NFLX Stock: Retail Stance 

On Stocktwits, retail sentiment for NFLX jumped to ‘extremely bullish’ from ‘neutral’.

A user said, “Started a position. AI will get their cost down. Product to market quicker. ROI will be extremely favorable. They have huge market presence.”

Another user said, “This stock will be $150 - $200 by end of 2027, and when the rotation out of AI happens you will see it all flood back to CMG, MCD, NFLX, and other high quality business.”

NFLX stock has cratered 26% year-to-date. 

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