Netflix CEO: Warner Bros. Deal Was Solid

Netflix co-CEO Ted Sarandos affirmed the strategic soundness of the company's past bid for Warner Bros., asserting the deal was priced correctly for shareholder value. He acknowledged that the pursuit may have altered investor perception of Netflix's business narrative, but maintained it was a decision for long-term benefit.

Addressing concerns about slowing engagement growth, Sarandos attributed some issues to Netflix's shift from subscriber metrics to engagement reporting. He noted a 2% growth in over 200 billion viewing hours, but conceded that overall growth is slower than he desires.

To accelerate growth, Netflix is expanding its live programming efforts, allocating 5% of its content budget to these events. Sarandos highlighted that while live content may not drastically increase overall engagement, it provides high-value interactions, contrasting less lucrative daytime viewing with profitable live sports.

Sarandos expressed cautious optimism about the merged HBO Max/Paramount+ platform, describing its competitive impact as uncertain. He also addressed talent departures, explaining that deals like those with the Duffer Brothers and Shawn Levy were due to creators' specific career aspirations, such as focusing on theatrical films or other studio projects, rather than a change in Netflix's talent strategy.