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Netflix's growth problem

Business · Heat 2.5 / 10 · 3 shows · 18m airtime

Netflix CEO Ted Sarandos said on October 6, 2026 that the company is not growing as fast as he wants, with engagement up 2 percent in the first half and shares down 26 percent year to date. HSSPC downgraded the stock to hold, arguing YouTube's gains are partly coming at Netflix's expense. The discussion now weighs that against Netflix's $12.8 billion in run-rate revenue added over 24 months, more than Peacock, HBO Max or Paramount each take in globally. Whether YouTube is the real competitor, and whether the growth bar is set right, remains open.

How 3 podcasts covered it

  1. Pivot, 2026-10-06 (45:18 to 53:34)
    Breaks down Sarandos's growth numbers and the downgrade
    Kara and Scott go through Sarandos's growth comments and the numbers behind them: 2 percent engagement growth, 13 percent Q2 revenue growth, a 26 percent year-to-date share drop, and an HSSPC downgrade to hold. Scott argues Netflix's real competitor is YouTube and that it needs to embrace the clip economy.
    New angle: HSSPC downgraded Netflix to hold, arguing YouTube's gains are partly coming at Netflix's expense.
  2. Closing Bell, 2026-10-20 (8:11 to 12:25)
    Debates Netflix's slide and the content overhaul
    Panel discussion of Netflix's slide, framed around the Peter Rice content overhaul and YouTube's AI-driven gains. Retells the 26 percent year-to-date decline and the $20 billion content budget, and stays inside the Sarandos growth debate already on the record.
  3. Animal Spirits Podcast, 2026-10-28 (50:47 to 55:57)
    Argues quality shows fix Netflix growth
    Picks up the Netflix growth debate with a valuation twist: the business added $12.8 billion in run-rate revenue over 24 months, more than Peacock, HBO Max and Paramount each take in globally, yet the stock is down 6% over five years against a 94% gain for the Qs. Argues the fix is quality shows, not the algorithm.
    New angle: Netflix added $12.8 billion in run-rate revenue over 24 months, more than Peacock, HBO Max or Paramount each take in globally.
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