Netflix is facing growing investor concerns over its ability to sustain growth as competition intensifies and user engagement shows signs of weakening. The streaming giant is expected to report third-quarter results on Tuesday, with revenue forecast to rise 11.8% year-on-year to $12.87 billion, marking its slowest quarterly revenue growth in three years. Co-CEO Ted Sarandos recently acknowledged that the company was not growing as quickly as he wanted, pointing to live programming as a potential driver of future expansion.
The company faces mounting pressure from YouTube, which commands nearly twice Netflix’s viewing time in the United States, according to Nielsen data. Market research firm Apptopia reported that US subscriber churn rose 16.6% year-on-year in the third quarter, while downloads across the US and Canada declined 20%. Jefferies also estimated 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 cited a weaker content lineup compared with last year and reduced engagement as key challenges.
In response, Netflix is exploring new growth avenues through live programming and advertising while restructuring its operations to improve profitability. The company recently cut about 6% of its workforce and appointed former Disney executive Peter Rice as its new content chief following the departure of longtime executive Bela Bajaria. Netflix has also secured broadcast rights for the 2030 FIFA World Cup in Spain and Andorra. Advertising is expected to become an increasingly important revenue stream, with Jefferies projecting that ad revenue could reach $7.5 billion by 2029. Investors will be watching closely for the company’s strategy to revive engagement and maintain growth in an increasingly competitive entertainment market.
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