Ted Sarandos Has No Regrets Over WB, Talks Overall Deals & Casey Bloys

Key Points:

• Netflix co-CEO Ted Sarandos defended the company’s bid for Warner Bros., stating the plan was solid and the price was right to ensure shareholder value, despite Wall Street scrutiny and ultimately losing to Paramount’s higher offer.
• Sarandos acknowledged Netflix’s slowing engagement growth but attributed some issues to the company’s shift from reporting subscriber growth to focusing on engagement metrics, which he said are more complex and varied in value.
• Netflix is investing about 5% of its content budget in live programming, which generates valuable but not necessarily higher overall engagement, as part of efforts to accelerate growth in viewer engagement.
• On competition, Sarandos was noncommittal about the impact of a potential HBO Max and Paramount+ merger, noting uncertainty about how the combined platform’s value will translate in the market.
• Addressing recent high-profile talent departures, Sarandos framed them as individual career choices rather than a shift in Netflix’s overall talent strategy, highlighting ongoing and new overall deals with creators like Ryan Coogler and Shonda Rhimes.