Netflix's co-CEO says the streamer needs to make better US shows and movies

Netflix co-CEO Ted Sarandos has stated that the company must improve its US content offerings. In a recent earnings call, Sarandos emphasized the need for better execution of US movies and shows. He explained that while Netflix's global content, which includes regions such as Latin America, Europe, the Middle East, Africa, and Asia, is generally performing well, the US market is not growing as rapidly as desired.

The United States and Canada constitute approximately 44% of Netflix's revenue for the quarter, amounting to $5.6 billion.

Sarandos highlighted that Netflix's US content has shown solid performance this year, but added that the success of other territories depends on those US titles being commercially successful worldwide. In response to its leadership changes, including the departure of content chief Bela Bajaria and film head Dan Lin, Sarandos confirmed that Netflix aims to elevate its content slate from "very good" to "great."

Additionally, the company announced the reduction of approximately 1,000 employees, marking one of its largest workforce cuts since 2022. Despite these strategic adjustments, Netflix's shares fell by about 44% over the past year, and the stock dropped 6% in after-hours trading following the disappointing earnings report. The slowdown in revenue growth has raised concerns among Wall Street analysts about Netflix's engagement growth, particularly as the streaming giant competes with free platforms like YouTube.