Netflix users are watching less as per-person engagement declines

Netflix $NFLX customers are watching for less time and launching the app on fewer days each month than they were roughly two years ago, according to Bloomberg, citing unnamed sources.

Netflix tracks app use with a metric called qualified play days, and the average customer is logging fewer of them, according to Bloomberg. Because the company added customers, total time on the app climbed a couple of percentage points over the year's opening six months, but each individual is watching less, according to Bloomberg.

The decline began after Netflix started policing shared accounts in 2022, according to Bloomberg. Executives initially figured the dip would be temporary, since each account now had fewer viewers on it. The trend has persisted, heightening the chance that viewers get less out of the service or are giving competitors more of their time, according to Bloomberg. Netflix declined to comment on internal metrics.

Co-Chief Executive Ted Sarandos said last week in a conversation with analysts that U.S. viewership is climbing more slowly than the company would like, according to Bloomberg. He and Co-CEO Greg Peters described the business as performing strongly beyond U.S. borders and built on a sound model.

The drop in usage has been slight, and subscribers have not canceled en masse. U.S. churn has held steady at 2%, the lowest in the industry, according to Bloomberg, citing research firm Antenna. Netflix said last week that cancellations have not jumped unusually in the wake of its price increases.

Company executives have cited a handful of potential explanations: a revamped user interface, stiffer competition, weaker programming and scant marketing beyond the service itself, according to Bloomberg. Netflix has boosted spending on programming and is branching out into podcasts and live sports.

"Two things can be true," Peters said at an employee town hall last week, according to Bloomberg. He said the company recognizes that it must keep pushing to speed up growth.

Netflix said on Oct. 14 it is eliminating about 6% of its global workforce, or around 1,000 jobs. Bloomberg reports that Netflix fired Chief Content Officer Bela Bajaria and film chief Dan Lin this month. Peter Rice, a former executive at both Walt Disney $DIS Co. and 21st Century Fox, now oversees content strategy, according to Bloomberg.

Netflix reported in July that members watched more than 97 billion hours of content in the first half of 2026, up 2% from a year earlier. In its third-quarter shareholder letter, the company acknowledged investor concern about view hours growth and said it seeks to speed it up. Netflix stock has fallen about 29% this year.