Sarandos said Netflix plans to build subscriber loyalty by regularly releasing original films and live events.
Sarandos said live sports attract new subscribers and increase advertising revenue.
Netflix beat third-quarter earnings estimates with $0.87 per share on revenue of $12.9 billion, but issued a weak outlook for the fourth quarter.
Shares of Netflix Inc. (NFLX) fell overnight as investors weighed slowing revenue growth against co-CEO Ted Sarandos’ strategy to retain subscribers and attract new viewers.
Sarandos emphasized that exclusive programming and live sports are key tools in making Netflix a vital part of consumers’ entertainment budgets.
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Netflix stock traded down more than 5% overnight Tuesday and is on track for a weekly loss.
Original content remains at the heart of Netflix’s strategy
Speaking on the fiscal third quarter (Q3) 2026 analyst call, Sarandos highlighted a steady stream of original productions and exclusive live programming.
Netflix wants to maintain a consistent release schedule, providing subscribers with new 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 go-to entertainment service, the first that members search for a great series or movie and the last service that they would cancel,” Sarandos said.
“Now the anchor of this strategy is Netflix Originals, differentiated, exclusive, ambitious, professionally produced series, films and live events. We have now oriented the market to expect something big and new to watch every week, so we must always guarantee quality and quantity.”
Live Events Help Drive Viewers for Netflix
Sarandos pointed to major sporting events, including the Canelo-Crawford boxing match and NFL and MLB programming, as ways to attract attention amid the abundance of entertainment choices.
“And they stand out. They attract new members. They add fuel to our advertising revenue. They appeal to our existing members and, overall, they just improve the value of Netflix.”
The company is also expanding its catalog through partnerships with external entertainment providers. Deals involving Sony (SONY), Disney (DIS), Universal and other studios complement Netflix’s original productions.
“All of this being said, it is very important to remember that approximately 95% of our expenses and almost all of our revenues are focused on this core business where we see a long runway for future growth,” Sarandos added.
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