Netflix's binge model challenged by CBS's Les Moonves

Ted Sarandos, co-CEO of Netflix, recently reflected on a challenging phone call he received from former CBS head Les Moonves. Moonves questioned whether Sarandos understood how television works, criticizing Netflix's decision to release entire seasons of shows at once. He believed this method would hurt viewership since traditional television usually releases episodes weekly. Over the past 25 years, Netflix has transformed the film and television industry. Sarandos noted that, despite initial skepticism from traditional executives, he and Reed Hastings, Netflix's chairman, had a clear vision of how the internet would change viewing habits. Sarandos remembered how Hastings described Netflix as a platform that would bring entertainment into homes via the internet, long before streaming became popular. Sarandos admitted that there were valuable lessons in Moonves’ approach. Initially, Sarandos aimed to make Netflix a prestige network like HBO. However, as Netflix grew, he realized that it was important to appeal to a wider audience, not just a select group of viewers. This shift allowed Netflix to balance high-quality programming with more mainstream content.