Netflix Shifts Focus to Aggressive Monetization Amid Viewing Slump
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The streaming giant is prioritizing price hikes and ad expansion as member engagement dips.
Netflix is pivoting toward a strategy of improved monetization as a primary focus, as The Verge first reported via the company's third-quarter earnings report. The company indicated that these efforts are intended to increase advertiser demand and create member value that allows Netflix to occasionally raise prices.
This shift comes as the streamer faces a decline in user engagement. Reporting from Reuters cites an analysis by financial firm Jefferies estimating that monthly viewing time per member fell to 49 hours in the first half of 2026, down from 66 hours during the same period in 2023. Additionally, The New York Times reports that Netflix's share of US viewing time in July dipped one percentage point year-over-year to 7.8 percent. The Wall Street Journal further reports that co-CEO Ted Sarandos expressed internal concerns regarding a lack of new hit shows and decreased time spent on the service by US users.
To combat intense competition, Netflix is diversifying its content through live events, original titles, and third-party programming. This includes upcoming NFL games, a Grand Theft Auto VI preview, and a partnership with French TV station TF1. The company also plans to expand its ad-supported tier—which generated $1.5 billion last year—into 15 new countries by 2027.
Internal restructuring accompanies these changes. The Verge reports that Netflix recently laid off approximately 1,000 employees and replaced film head Dan Lin and chief content officer Bela Bajaria. Former Disney executive Peter Rice will assume the chief content officer role on October 26th. Despite the viewership dip, Netflix reported a 12 percent year-over-year increase in earnings, totaling $12.9 billion over the last few months.