Netflix reported a 12 percent increase in third-quarter revenue to nearly $12.9 billion, with net income rising 44 percent to nearly $3.7 billion, but admitted stagnating viewership in the U.S. and Canada is a growing concern. Shares dropped about 5 percent in after-hours trading.
The company acknowledged investor concern about view-hours growth, particularly in North America, where revenue growth slowed from 17 percent a year earlier to 11 percent. Despite having 325 million subscribers worldwide, Netflix is struggling to maintain engagement as viewers drift toward platforms like YouTube and TikTok.
Recent shows like "Beef," "The Night Agent," and "Avatar: The Last Airbender" lost significant viewership, and no summer film became a breakout hit. Analysts say Netflix needs a new content hit to reverse the trend.
The quarter also saw major leadership changes, including the layoff of 1,000 employees and the firing of chief content officer Bela Bajaria and top film executives. Peter Rice, a former Disney and Fox executive, has been named to replace Bajaria. Netflix's stock remains down nearly 45 percent from a year ago.
Source: New York Times Top Stories · Summarized by HeadlinesBriefing