Netflix Co-CEO Ted Sarandos is pushing back against the idea that the streaming company needs a strategic reset, arguing instead that stronger execution in the United States is the key to accelerating growth.

Speaking on a Tuesday earnings call, Sarandos told analysts that Netflix’s broader operation remains sound even as questions mount over a growth slowdown.

“Our business and our business flywheel are working. There is no need for a fundamental shift in the strategy,” he said. “We do need better execution in the U.S. Our content around the world is largely working.”

According to Sarandos, titles from territories including Asia Pacific and Latin America are helping generate engagement, subscriber growth, revenue and profit. The U.S. business is also performing, he said, but not at the pace Netflix wants.

“We had some really solid doubles and triples this year, but the other territories count on some of those titles being home runs so that they’ll travel around the world,” Sarandos said. “We’re focusing on that execution.”

New chief content officer Peter Rice is expected to play a major role in that effort.

Netflix Sticks With Its Programming Formula

Sarandos said the company’s content strategy remains centered on a combination of original programming, licensed titles and an expanding live business. While some Wall Street observers have suggested that short-form video, third-party material or user-generated content could increase engagement, he characterized those areas as early-stage initiatives receiving limited investment.

Netflix does, however, expect to pursue more arrangements resembling its deal with France’s TF1 network, which adds strong local programming to the platform.

The emphasis on continuity comes at a sensitive moment for the company. Investors have pushed Netflix shares down by more than 40% over the past year, increasing pressure on its leadership to lay out a credible route to long-term growth.

At the same time, Netflix’s bid for Warner Bros., substantial job cuts and changes in the C-suite signal that management recognizes the need to respond to an intensely competitive market. Executives nevertheless framed the central programming challenge in relatively straightforward terms: Netflix must consistently provide enough quality and quantity across its slate.

They said the lineup appears stronger this fall and into next year, with the company aiming to maintain that level of output.

Retention, Pricing and Advertising in Focus

Sarandos described overall engagement as the total value Netflix delivers to members, pointing to customer churn as the clearest evidence of whether viewers believe they are receiving that value.

Netflix leads its rivals in customer retention, and Sarandos said third-quarter churn improved year over year both globally and in the United States. The results were also better than forecast.

He added that the response to price changes is the ultimate test of whether members see sufficient value in the service, indicating that the company’s recent subscription price increases have been received well.

CFO Spencer Neumann said Netflix remains focused on three core growth drivers: membership, pricing and advertising. He said the company expects those same levers to support strong revenue growth into 2027.

Advertising remains a pressure point, however. Softer-than-expected ad performance contributed to weaker revenue guidance for full-year 2026, and Netflix shares dropped 6% after the close Tuesday.

Theatrical Plans Continue to Evolve

Netflix’s approach to cinemas remains another area under scrutiny. The company plans to release 30 films theatrically this year, ranging from smaller platform releases with longer windows to wide releases for family films.

The streamer began publicly reporting box-office results with La Bola Negra this past weekend. The film opened well in limited release, though Sarandos emphasized that Netflix continues to operate as a streaming-first company.

“That is our core,” he said. “But we consider every time we have a new film, the film itself, the audience for the film, and the filmmaker when we’re trying to come up with the release plan.”

He said Netflix evaluates how to serve moviegoers who want a theatrical experience without reducing the value of watching the film on its platform.

After one week of public box-office reporting, Sarandos said the company was pleased with its position but suggested that a fuller assessment should wait approximately six months.

ShowBiz Take

Sarandos’ message is one of refinement rather than reinvention. Netflix is not abandoning its mix of originals, licensed programming and live content, nor is it making short-form or user-generated video a central answer to its current challenges.

Instead, management is placing the burden on the slate—particularly U.S.-produced titles capable of becoming global hits—while relying on member growth, pricing and advertising to sustain revenue. That makes Peter Rice’s arrival especially significant: stronger U.S. execution is now being presented as a central requirement for Netflix’s next phase of growth.

What Happens Next?

Attention will turn to whether Netflix’s stronger fall and next-year slate can produce more globally traveling hits, and whether advertising can recover enough to support the company’s 2027 revenue expectations. Its theatrical experiment will also remain in view as Netflix expands its 30-film release plan and gathers more public box-office data.