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Netflix Faces User Engagement Questions Ahead of Third-Quarter Earnings Report
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CNBC TV18•19-10-2026, 16:07
Netflix Faces User Engagement Questions Ahead of Third-Quarter Earnings Report
- •Netflix is expected to post its slowest third-quarter revenue growth in three years, with sales forecast to increase 11.8% to $12.87 billion.
- •Co-CEO Ted Sarandos admitted growth is not fast enough and pointed to live programming and advertising as potential growth drivers.
- •Competition from creator-led platforms like YouTube and falling average monthly viewing times are pressuring the streaming giant.
- •US user churn rose 16.6% year-over-year in the third quarter, while downloads in the US and Canada declined by 20%.
- •The company recently appointed former Disney executive Peter Rice as its new head of content following Bela Bajaria's departure.
Key Questions Answered
Netflix is expected to post its slowest third-quarter revenue growth in three years, with sales forecast to increase by 11.8% to reach $12.87 billion.
US user churn rose 16.6% year-over-year in the third quarter, while downloads in the US and Canada fell 20%. Additionally, average monthly viewing time per member dropped to 49 hours in the first half of this year from 66 hours in the first half of 2023.
Netflix is betting on advertising to diversify revenue with forecasts reaching $7.5 billion by 2029, exploring live programming to accelerate growth, and recently acquiring broadcast rights for the 2030 FIFA World Cup in Spain and Andorra.
