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Netflix faces questions over viewer engagement ahead of earnings report
Published : Monday, 19 October, 2026 at 4:44 PM
Observer Online Report
Netflix faces growing pressure to sustain its growth as competition intensifies and signs of weakening viewer engagement emerge ahead of its third-quarter earnings report due on Tuesday.
The streaming giant's co-chief executive Ted Sarandos recently acknowledged that the company was not growing as quickly as he wanted and suggested live programming could help accelerate growth.
The company is also facing a shift in viewing habits as lower-cost, creator-led videos compete with premium scripted content. YouTube, the dominant streaming platform in the United States, commands nearly twice Netflix's viewing time and continues to gain market share, according to Nielsen.
Netflix is expected to record its slowest third-quarter revenue growth in three years, with sales forecast to rise 11.8 per cent to $12.87 billion, according to data compiled by LSEG.
The company has also undergone organisational changes. It cut about 6 per cent of its workforce in a move that reflected the industry's growing focus on profitability, according to eMarketer analyst Ross Benes.
Netflix's content leadership has also changed, with longtime content chief Bela Bajaria leaving the company and former Disney executive Peter Rice taking over.
Meanwhile, US customer churn rose 16.6 per cent year-on-year in the third quarter, roughly twice the pace recorded over the previous three quarters. Downloads in the United States and Canada fell 20 per cent, according to market research firm Apptopia.
Viewer engagement has also come under pressure. Jefferies estimates that average monthly viewing time per Netflix member fell to 49 hours in the first half of 2026, down from 66 hours in the same period of 2023.
Analysts attributed the decline partly to the 2026 FIFA World Cup and a weaker content line-up compared with last year.
Netflix is pursuing live sports as part of its strategy to attract audiences. The company recently acquired broadcasting rights for the 2030 FIFA World Cup in Spain and Andorra.
Advertising is another area of focus as Netflix seeks to diversify its revenue. Jefferies forecasts that the company's advertising revenue could reach $7.5 billion in 2029.
Investors will be watching Tuesday's earnings report for signs of whether Netflix can strengthen viewer engagement, maintain revenue growth and compete more effectively in an increasingly crowded streaming market.
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Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
