Netflix executives and industry insiders say co-CEO Ted Sarandos devised its mass-market and international growth strategy, which Bela Bajaria executed

Netflix's content spending model may shift away from big-budget international hits towards more universally appealing, lower-cost productions.

Netflix's growth strategy, particularly its focus on mass-market appeal and international expansion, was reportedly devised by co-CEO Ted Sarandos. The execution of this strategy is attributed to Bela Bajaria, another co-CEO. This comes as the streaming giant grapples with slowing viewer engagement, a trend that is beginning to threaten the company's continued growth. The article suggests that Sarandos's vision is now being scrutinized in light of these engagement challenges, implying a potential re-evaluation of content acquisition and development decisions aimed at retaining and attracting subscribers.

Sarandos's strategic direction, which heavily leaned into international production and a broader content library, is now under a microscope due to decelerating user engagement. This suggests a potential pivot in how Netflix allocates its vast content budget, moving from broad, expensive bets to potentially more targeted, cost-effective content development. The success of this strategy has been a cornerstone of Netflix's global dominance, but its efficacy is being tested by evolving viewer habits and increased competition.

The scrutiny on Sarandos's strategy implies that Bajaria, as the operational lead, might be tasked with refining or even altering the content slate to address the engagement dip. Industry observers will be watching closely to see if this translates into a more pragmatic approach to content investment, potentially impacting the types of shows and movies that get greenlit and the volume of productions in key international markets.