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Netflix co-CEO Sarandos says 'we could do better' after weak forecast · GNN Daily Breaking News

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  Speaker 1: Netflix co-chief executive officer Ted Sarandos acknowledged during an earnings
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  Speaker 1: call with investors that the streaming leader could do better.
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  Speaker 1: After delivering a weaker-than-expected revenue forecast for the fourth quarter
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  Speaker 1: alongside a reduced full-year advertising outlook. Despite reporting strong third-quarter
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  Speaker 1: financial results that beat Wall Street profit expectations, generating $ 12. 87
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  Speaker 1: billion in quarterly revenue. Shares fell in extended trading as
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  Speaker 1: forward guidance pointed to a fourth consecutive quarter of decelerating growth.
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  Speaker 1: Management trimmed its full-year advertising revenue target by 10%, lowering
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  Speaker 1: expectations to $ 2. 7 billion due to technical delays in rolling
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  Speaker 1: out key ad product features. Addressing analyst concerns over flattening
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  Speaker 1: user engagement and a modest 2% growth in total viewing
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  Speaker 1: hours during the first half of the year Sarandos stressed
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  Speaker 1: that executive leadership is actively refining its content strategy and
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  Speaker 1: user features to reignite viewing momentum. The executive noted that
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  Speaker 1: while core subscription revenue growth continues to meet internal benchmarks
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  Speaker 1: following recent price adjustments, the slower than anticipated ramp up
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  Speaker 1: of the company's ad-supported tier highlights the operational challenge of
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  Speaker 1: scaling non-subscription revenue streams. In response to shifting domestic viewing habits,
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  Speaker 1: Netflix leadership emphasized plans to accelerate the development of high-impact
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  Speaker 1: hit programming and expand live event streaming. The cautious revenue
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  Speaker 1: outlook arrives amid broader structural changes across the corporate organization,
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  Speaker 1: following recent high-profile leadership transitions and targeted workforce adjustments aimed
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  Speaker 1: at streamlining content development. Market analysts noted that while Netflix
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  Speaker 1: maintains a commanding global presence and robust operating margins projected
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  Speaker 1: at 31.5%, investors remain sensitive to slowing viewership metrics in
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  Speaker 1: primary North American markets. As competition among digital entertainment platforms intensifies,
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  Speaker 1: Sarandos reassured shareholders that the company remains uniquely positioned to
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  Speaker 1: leverage its global scale, reinvest in premium production. and optimize
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  Speaker 1: its advertising infrastructure to capture long-term streaming growth.