He characterised Netflix’s relationship with studios as “very strong,” and Sarandos acknowledged there is “a lot of anxiety” about the dramatic shifts in customer demand for more on-demand viewing and the question of how to monetise that viewership. He said Netflix as a “model around time-shifted content people are willing to pay for.”
He contended that Netflix is a complement to all forms of TV-including HBO, which has been critical of Netflix and doesn’t provide them with content. He called HBO the “gold standard” for premium subscription TV. “Their strategy is about exclusivity and I respect that,” he said. “Them being a great seller and us being a big buyer, we’ll eventually find a way to do business that is great for both of us.”
Sarandos also weighed in on other big issues of the day, shooting down the notion that on-demand services such as Netflix contribute to “cord-cutting” and stating that he sees net neutrality as something of a market problem for which there are market solutions.