Netflix faces engagement questions before third-quarter results
Investors are watching signs of slower viewing and higher US churn as Netflix prepares to report third-quarter results on October 20.
Netflix faces investor questions about how it will sustain growth when it reports third-quarter results on October 20, after third-party measures pointed to softer viewing and higher US customer churn, Reuters reported on October 19. The figures are indicators investors can weigh ahead of the company's results, rather than Netflix's reported quarterly performance.
Netflix has scheduled its results and business outlook for approximately 1:01 p.m. Pacific Time on October 20. According to LSEG data compiled for Reuters, analysts expect revenue to rise 11.8% to $12.87 billion, which would be the slowest third-quarter sales growth in three years. That forecast sets a benchmark for the release; the company has yet to report the quarter's sales.
The engagement measures investors are watching
Market research firm Apptopia found that Netflix's US user churn rose 16.6% year over year in the third quarter, Reuters reported. Apptopia also recorded a 20% fall in downloads in the US and Canada, although Reuters did not specify the comparison period for that measure. Churn and downloads offer different views of customer behavior, so neither figure alone establishes the company's subscriber or revenue result.
Jefferies estimated that average monthly viewing time per Netflix member fell to 49 hours in the first half of 2026 from 66 hours in the first half of 2023, according to Reuters. The report also cited Nielsen data showing that YouTube had nearly twice Netflix's viewing time in the US and continued to gain streaming share. Lower-cost videos made by creators are competing with premium scripted programming for viewers' time.
Netflix's growth options ahead of the report
Netflix co-CEO Ted Sarandos recently said the company was ‘not growing as fast as I want us to’ and pointed to live programming as a possible way to accelerate growth, Reuters reported. Analysts cited by Reuters said the 2026 FIFA World Cup and a weaker content slate than last year's had weighed on engagement. Their assessment does not establish how much either factor affected viewing.
Reuters also reported that Netflix had recently acquired rights to broadcast the 2030 FIFA World Cup in Spain and Andorra. The company is looking to advertising as another source of growth: Jefferies forecasts that its advertising revenue could reach $7.5 billion in 2029. That figure is an analyst projection, separate from the quarterly sales forecast investors will compare with Tuesday's results.
The growth questions come amid changes inside Netflix. Reuters reported that the company cut about 6% of its workforce; eMarketer analyst Ross Benes described the reduction as reflecting the streaming industry's shift toward profitability. Longtime content head Bela Bajaria also left, with former Disney executive Peter Rice taking over, according to Reuters.
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Sources and context
- Netflix faces questions on user engagement ahead of third-quarter reportChannel NewsAsia (Reuters report)
- Netflix to Announce Third Quarter 2026 Financial ResultsNetflix Investor Relations
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.