Netflix used its third-quarter earnings report to reassure investors that falling viewing time is not a reason to panic. The company lists monetization improvements as a central focus, saying these efforts will help it "occasionally raise prices" and increase advertiser demand. It also plans to expand its ad-supported tier to 15 new countries in 2027.
Those assurances come as engagement metrics weaken. Jefferies estimates that monthly viewing time per member dropped to 49 hours in the first half of 2026, down from 66 hours in the same period of 2023. Netflix's share of US viewing time also slipped one percentage point year over year to 7.8% in July.
Co-CEO Ted Sarandos acknowledged the US slowdown on the earnings call, pointing instead to growth in Latin America, Europe, the Middle East, and Asia-Pacific. The company is also making leadership changes, including bringing in former Disney executive Peter Rice as chief content officer after laying off around 1,000 employees.
Netflix faces intensifying competition from rivals such as a combined HBO Max and Paramount Plus, as well as YouTube. To counter that, it is pushing into live events, third-party programming, and original titles, while reportedly considering integrating other streamers into its app. The source does not provide details on how Netflix will specifically improve monetization beyond pricing and advertising.