Netflix Co-CEO says the company's growth did not meet expectations, with user engagement increasing by only 2%

Netflix (NFLX.US) Co-CEO Ted Sarandos stated that the company's growth rate has not met his expectations. On Wednesday local time, Sarandos said: "Overall, our growth rate isn't as fast as I'd like it to be, and we're working hard to accelerate it. However, we're also doing some things that create significant headwinds to this number." He noted that although Netflix achieved double-digit revenue growth in all regions, its user engagement grew by only 2% in the most recent fiscal year. To drive growth, Netflix is expanding its business beyond its core focus on movies and TV shows, with about 5% of its $20 billion content budget allocated to live programming. The company also plans to broaden the theatrical distribution of certain major films. Netflix’s share price has fallen nearly 24% so far this year. As the company continues to increase its content spending, it expects both revenue and profit growth to slow.