Netflix Inc. (NASDAQ:NFLX) wants subscribers to do more than binge-watch, with co-CEO Ted Sarandos on Thursday outlining the company’s expansion into video podcasts, creator-led programming, vertical video and lifestyle content.
‘The Definition Of TV Has Broadened’
Speaking at the company’s second-quarter earnings call, Sarandos said Netflix’s move into newer formats builds on how entertainment consumption has evolved over the past decade.
“Over the last 15 years, the definition of TV has broadened and our definition has changed along with it,” Sarandos said.
He added that Netflix has evolved from a platform built around scripted English-language dramas into one that now includes local-language programming, live sports, unscripted shows, games, video podcasts and creator-led content, describing those additions as “evolutionary, not revolutionary.”
Podcasts Bring Viewers Outside Prime Time
Netflix was seeing early progress with mobile vertical clips and strong engagement from video podcasts, which Sarandos said was bringing members to the platform outside of traditional prime-time viewing
The streaming company has been building a mix of owned and licensed podcasts featuring creators including Martha Stewart, Kate and Oliver Hudson, Jay Shetty, Bill Simmons, Pete Davidson and Brian Williams.
Sarandos added that Shetty’s “On Purpose” was available exclusively on Netflix, while members were also tuning into The Breakfast Club and the official Bridgerton podcast.
“These are examples of us continuing to evolve and deliver members more entertainment value and in more ways to engage with stuff they love,” Sarandos said.
He also reiterated that the streaming giant remains “primarily builders, not buyers,” as investors continue to speculate about potential acquisitions involving Lionsgate Studios Corp. (NYSE:LION), NBCUniversal and other media companies.
Guidance Disappoints Wall Street
Netflix reported second-quarter revenue of $12.56 billion, up 13% from a year earlier, marginally missing Wall Street estimates of $12.59 billion.
Adjusted earnings for the quarter came in at 80 cents per share, topping Wall Street estimates of 79 cents.
The streaming company said it remains on track to meet its full-year targets and forecasts third-quarter revenue of $12.86 billion, representing 12% year-over-year growth.
Price Action: Shares closed 0.91% higher at $74.35 on Thursday before falling 9.05% in extended trading following the release of its quarterly results after the bell.
Benzinga edge rankings indicate NFLX has a Momentum score in the 5th percentile and a Growth score in the 89th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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