Netflix’s next growth chapter hinges on keeping viewers hooked
A drone view shows the Netflix logo on one of the company’s buildings in the Hollywood neighborhood in Los Angeles, California, U.S., January 20, 2026. REUTERS/Daniel Cole
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July 15 : Netflix is under pressure to reassure investors about its growth strategy when it reports second-quarter results on Thursday, as its user engagement has faltered amid growing competition from traditional media players, YouTube and mobile viewing.
The streaming giant has shed over a fifth of its value this year due to doubts about its growth efforts, including an ad business that is still far from becoming a major revenue stream.
Here are more details:
• The company is expected to report a 13.6 per cent rise in revenue to $12.59 billion, its slowest growth in over four quarters, while adjusted earnings per share will likely total 79 cents, according to analysts polled by LSEG.
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• The advertising business — seen as crucial to Netflix’s growth since the boost from its password-sharing crackdown and price hikes over the past two years fades — is expected to bring in $705.8 million in revenue.
• “We had to lower our (advertising) forecast,” Emarketer analyst Ross Benes said, adding the ad business has not grown as strongly as most analysts originally expected.
• To draw in advertisers and boost engagement, Netflix has pushed into live events. CNBC reported that the company was exploring a bid for the 2030 and 2034 FIFA World Cup U.S. rights, and in talks to acquire online film platform Letterboxd.
• “The company has moved from disruption to dominance, and the challenge now is to sustain momentum from a much larger base,” PP Foresight analyst Paolo Pescatore said.
• Bloomberg News reported earlier this month that Netflix viewers were less likely to return for later seasons, with hit shows such as “The Night Agent” and “Beef” losing roughly half or more of their audience after their first season.
• Comcast’s NBCUniversal spinoff has also fueled deal speculation, but some analysts expect Netflix to focus on smaller deals rather than another major acquisition.
Source: Reuters
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