Netflix Earnings Rise 12 Percent Amid Declining US Viewing

Netflix reported a 12 percent year-over-year increase in earnings, totaling $12.9 billion over the last few months. Despite the financial growth, the company is prioritizing monetization to counter a decline in user engagement. Analysis from Jefferies Group indicates that monthly viewing time per member dropped from 66 hours in early 2023 to 49 hours in early 2026.

To address intense competition and a shortage of new hit shows in the United States, the streaming service is expanding into live events and third-party programming. Planned additions include NFL games and a preview of Grand Theft Auto VI. The company also intends to launch its ad-supported tier in 15 new countries by 2027.

Internal changes include the layoff of approximately 1,000 employees and a leadership restructure. Former Disney executive Peter Rice will assume the role of chief content officer on October 26. Co-CEO Ted Sarandos noted that while international markets in Latin America, EMEA, and APAC are driving growth, the U.S. market is not growing as fast as the company would like.