Ted Sarandos, Netflix's chief content officer, says that the television networks may be producing more serialized dramas because they know they can sell them to Netflix, even when those shows prove to be disappointments when they air. There is still a life for that programming on Netflix ... we become the last bit of revenue for some of those series, Sarandos told an investors conference in New York. He noted that in the case of Arrested Development, the show only had three seasons on the air -- not the requisite four (88 episodes), but that it not only found an audience on Netflix but also inspired Sarandos to back a fourth season that the streaming service launched on Sunday. It met our expectations, and we're thrilled, he said. He dismissed news reports that shares in the company dropped 6 percent following mixed reviews for the new Arrested season. I hope you guys are not really trading on New York Times reviews, he said. It's not a Broadway show. It's not going to close because of a bad review. After dropping about 6 percent earlier this week, perennially volatile Netflix shares were up more than 2 percent at midday trading on the Nasdaq today (Friday).