Netflix needs to make better shows and movies in the US, its co-CEO said after its third-quarter earnings report.
“We 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 “generally used,” Sarandos told investors.
“The U.S. is working too. It’s just not growing as fast, or as fast as we’d like,” Sarandos said.
Netflix’s biggest markets are the US and Canada, which accounted for 44% of its revenue this quarter at $5.6 billion. Next is Europe and the Middle East, followed by Latin America and the Asia-Pacific region.
Sarandos said the US “has some really good doubles and triples this year” but added that “other regions consider some of these titles to be home races, so they can travel around the world.”
Netflix announced last week that it will replace content chief Bela Bajaria, who has overseen the streamer’s movies and shows since 2023, with former Disney and Fox executive Peter Rice.
The streaming giant is also moving forward from film director Dan Lin. Rice will oversee Netflix films until the company fills his role.
Co-CEO Greg Peters said in the earnings call that Netflix’s goal is to take its content slate “from very good to great.”
In addition to subbing out content executives, Netflix also reducing approximately 1,000 workers about the biggest staff reduction since 2022.
Netflix shares entered Tuesday’s earnings report down about 44% over the past 12 months. The stock fell 6% in after-hours trading after the company’s report, which showed a third straight quarter of declining revenue growth.
Wall Street is already worried Netflix’s engagement growthespecially as a paid streaming leader competing with free streamers like YouTube.
“There’s a lot to be excited about, but I know we can do better,” Sarandos said.