Netflix is preparing to report third-quarter financial results next month after a mixed second quarter in which revenue missed analyst estimates while earnings per share exceeded them. Viewing hours rose 2% in the first half of 2026 and year-over-year growth slowed to 13.4% between April and June, its weakest rate in nearly three years. Co-CEO Ted Sarandos said Netflix was not growing as quickly as he wanted and identified live programming as a growth tool that generates signups, reduces subscriber churn and supports advertising. Netflix spends about 5% of its roughly US$20 billion annual content budget on live programming, which represents about 1% of viewing. Sarandos also said Netflix was right not to raise its bid for Warner Bros. Discovery, arguing that a higher offer could have eroded shareholder value after Paramount Skydance made the higher bid. Investors remain focused on whether live events can improve subscriber momentum and retention enough to support growth amid engagement concerns and competition from YouTube.