Netflix faces questions on user engagement ahead of third-quarter report

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.Here are more details: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, 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 longtime 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 prior 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 this year from 66 hours in the first half of 2023.The 2026 FIFA World Cup and a weaker content slate than last year weighed on Netflix's engagement, analysts said.The company recently acquired broadcast rights to air the 2030 FIFA World Cup in Spain and Andorra.Netflix is betting on advertising to diversify revenue, with Jefferies forecasting ad revenue to reach $7.5 billion in 2029. ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Business of Odd Things: Inside an industry that farms fish that nobody is meant to eatWar's second-order effects are becoming visible in critical sectorsUS mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projectsWhat is the real impact of 13x jump in cash transfers to women?Airlines Q2 turbulence: Fewer passengers, rising fares and a crude shockThe NBFC saga - Part 2: Line drawn in 2006 is reason for the headlines todayCurbing rupee bets: What the RBI’s new rules mean for the hedge-now-or-wait questionThe ABCD of the US mid-term elections – Part 1: Why it matters across the globeFour rules made HDFC Bank a compounder. All four have stopped. Can the new CEO rewrite them?Subscribe Now