Netflix investors are expecting details on how the streaming giant plans to sustain growth when it reports third-quarter results on Oct 20, as competition intensifies and user engagement shows signs of fatigue.
Ted Sarandos, the co-CEO of Netflix, recently admitted the company “is not growing as fast as I want us to”, and suggested live programming could be an opportunity to accelerate growth.
The streamer is contending with a fundamental shift in entertainment as lower-cost, creator-led videos chip away at premium scripted content. YouTube, the dominant streaming platform in the US, has nearly double the viewing time of Netflix and continues to gain market share, according to Nielsen.
Netflix is expected to post its slowest third-quarter revenue growth in three years, with sales forecast to increase 11.8% to US$12.87 billion (S$16.46 billion), according to data compiled by LSEG.
It cut about 6% of its workforce in a move that analyst Ross Benes of Emarketer said reflected the streaming industry’s shift to profitability.
Netflix also saw a change in its content leadership, with long-time head of content Bela Bajaria leaving the company and former Disney executive Peter Rice taking over.
Its US user churn rose 16.6% year-over-year in the third quarter, roughly double the pace of the previous three quarters, while downloads in the US and Canada fell 20%, according to market research firm Apptopia.
Jefferies estimates average monthly viewing time per Netflix member fell to 49 hours in the first half of 2026 from 66 hours in the first half of 2023.
The 2026 World Cup and a weaker content slate than 2025 weighed on Netflix’s engagement, analysts said.
The company recently acquired broadcast rights to air the 2030 World Cup in Spain and Andorra.
Netflix is betting on advertising to diversify revenue, with Jefferies forecasting ad revenue to reach US$7.5 billion in 2029. REUTERS
