Ted Sarandos’ latest interview started with a softball question: “Have you destroyed Hollywood?”

“No, we’re saving Hollywood,” the Netflix co-ceo replied with a smile.

On Wednesday in New York, Sarandos engaged in a brief discussion with Time magazine editor-in-chief Sam Jacobs at the Time100 Summit. The two jumped right into the problems plaguing Hollywood and why Netflix is succeeding amidst production decreases, dwindling box office numbers and an industry in contraction.

“Netflix is a very consumer-focused company,” Sarandos said. “We really do care that we deliver the program to you in a way you want to watch it.”

Using the struggling global box office as an example, Sarandos added, “What does that say? What is the consumer trying to tell us? That they’d like to watch movies at home, thank you. The studios and the theaters are duking it out over trying to preserve this 45-day window that...