Netflix needs to make better shows and movies in the US, its co-CEO said after its third-quarter earnings report.
“We do need better execution in the US,” co-CEO Ted Sarandos said on the company’s Q3 earnings call on Tuesday.
Netflix’s global content — including Latin America, Europe, the Middle East, Africa, and Asia — “is largely working,” Sarandos told investors.
“The US is also working. It’s just not growing as fast as it could, or as fast as we’d like,” Sarandos said.
Netflix’s biggest market is the US and Canada, which made up about 44% of its revenue this quarter at $5.6 billion. Next are Europe and the Middle East, followed by Latin America and the Asia-Pacific region.
Sarandos said the US “had some really solid doubles and triples this year” but added that “the other territories count on some of those titles being home runs, so that they’ll travel around the world.”
Netflix announced last week that it will be replacing content chief Bela Bajaria, who had overseen the streamer’s movies and shows since 2023, with former Disney and Fox executive Peter Rice.
The streaming giant is also moving on from film chief Dan Lin. Rice will oversee Netflix’s movies until the company fills his role.
Co-CEO Greg Peters said on the earnings call that Netflix’s goal is to take its content slate “from very good to great.”
Besides subbing out content execs, Netflix also cut roughly 1,000 workers in what was its biggest round of staff reductions since 2022.
Netflix shares entered Tuesday’s earnings report down about 44% in the last 12 months. The stock fell 6% in after-hours trading following the company’s report, which showed a third consecutive quarter of slowing revenue growth.
Wall Street has grown concerned about Netflix’s engagement growth, especially as the paid streaming leader competes with free streamers like YouTube.
“There is a lot to be excited about, but I know that we could do better,” Sarandos said.
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