Jessica Reif Ehrlich's questions to NETFLIX (NFLX) leadership • Q3 2025
Question
Jessica Reif-Ehrlich asked about the potential impact of industry consolidation on the competitive landscape, whether it's an opportunity or threat for Netflix, and its implications for content strategy and differentiation.
Answer
Co-CEO Ted Sarandos addressed the opportunity, stating Netflix is historically a builder, with plenty of organic growth runway. He emphasized that nothing is 'must-have' for their goals. Netflix focuses on profitable growth and reinvesting organically and through selective M&A, applying a framework: big opportunity, strengthens entertainment/IP/capabilities/strategy, relative to price/opportunity cost. He reiterated no interest in owning legacy media networks and that Netflix will be choosy, focusing on organic growth and returning excess cash to shareholders. Co-CEO Greg Peters addressed the threat, noting Netflix has always faced significant competition and industry consolidation hasn't fundamentally shifted the landscape. He argued that mergers don't change the challenge competitors face in developing diverse capabilities. He concluded that Netflix will evaluate all opportunities within its framework to grow the business.