Netflix reports 12% revenue increase amid falling viewing time
Netflix reported $12.9 billion in quarterly revenue but noted stagnant viewership in the U.S. and Canada.
Key facts
- Quarterly revenue increased 12% year-over-year to $12.9 billion.
- Monthly viewing time per member fell from 66 hours in early 2023 to 49 hours in early 2026.
- Netflix laid off approximately 1,000 employees and replaced chief content officer Bela Bajaria.
- The company plans to expand its ad-supported tier to 15 new countries in 2027.
Netflix reported revenue of $12.9 billion for the third quarter, a 12% year-over-year increase, according to the company. The streaming service stated that stagnant viewership in the U.S. and Canada is a major concern.
An analysis from Jefferies estimated that monthly viewing time per member dropped to 49 hours in the first half of 2026, compared to 66 hours in the first half of 2023, according to Reuters. The New York Times reported that Netflix's share of U.S. viewing time was 7.8% in July, a one-percentage-point decrease from the previous year.
Netflix laid off about 1,000 employees last week and replaced chief content officer Bela Bajaria with former Disney executive Peter Rice, who starts on 26 October. The company also removed film head Dan Lin, Doug Belgrad, and original series director Carolina Garcia.
Co-CEO Ted Sarandos said the company wants to improve its slate of shows in the U.S. to create hits that members talk about globally. The company cited intense competition and acknowledged investor concern regarding view-hour growth.
Netflix plans to bring its ad-supported tier to 15 new countries in 2027. To broaden its content, the company cited upcoming NFL games, a Grand Theft Auto VI preview, and a partnership with French TV station TF1.
Context
Netflix is a streaming service that is currently focusing on monetization and leadership changes to address a decline in member viewing hours.
How outlets headlined it
- New York TimesNetflix Is Great at Making Money. Its Problem Is Keeping Viewers Hooked.
- MarketWatchNetflix vows to revive viewership trends, but investors hit ‘sell’ on the stock
- The VergeNetflix is telling investors not to worry, even though you’re watching less and less
- VarietyTed Sarandos Addresses Netflix Content Exec Purge: ‘I Know That We Could Do Better’
How this was made
Compiled by our AI newsroom from 4 independent outlets, checked by a separate AI editor against the sources. Only claims found in the sources are reported. Spot an error? Every source is linked below.
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