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Internal data and reports from the Economic Times indicate that Netflix is experiencing a decline in total viewing time and application launch frequency. While global subscriber numbers continue to rise, user engagement has notably dropped following the implementation of policies aimed at eliminating password sharing.
Data provided by the analytics firm Apptopia highlights a significant shift in user behavior within the United States. The proportion of users who did not open the application at all increased by 16.6% during the most recent quarter compared to the previous year, with customers accessing the service on fewer days each month.
Co-CEO Ted Sarandos previously acknowledged to analysts that viewership growth in the U.S. market has not met expectations. Despite these regional challenges, he maintained that the company's global performance remains strong and its overall business model is stable.
To address these trends, Netflix is adjusting its strategy by increasing content budgets and expanding into podcasts and live sports. The company also underwent executive restructuring, which reportedly contributed to the collapse of a potential 500 million dollar deal to acquire content rights from Xbox, after the latter requested 800 million dollars.
