Netflix's next growth chapter hinges on keeping viewers hooked

Netflix's next growth chapter hinges on keeping viewers hooked Harshita Mary Varghese Wed, July 15, 2026 at 12:01 PM GMT+2 2 min read NFLX LSEG. L By Harshita Mary Varghese July 15 (Reuters) - Netflix is under pressure to reassure investors about its growth strategy when it reports second-quarter results ‌on Thursday, as its user engagement has faltered amid growing competition from ‌traditional media players, YouTube and mobile viewing. The streaming giant has shed over a fifth of its ​value this year due to doubts about its growth efforts, including an ad business that is still far from becoming a major revenue stream.

Here are more details: • The company is expected to report a 13. 6% rise in revenue to $12. 59 billion, ‌its slowest growth in over ⁠four quarters, while adjusted earnings per share will likely total 79 cents, according to analysts polled by LSEG.

• The advertising business — ⁠seen as crucial to Netflix's growth since the boost from its password-sharing crackdown and price hikes over the past two years fades — is expected to bring in $705. 8 ​million in ​revenue. • "We had to lower our (advertising) forecast," Emarketer ​analyst Ross Benes said, adding ‌the ad business has not grown as strongly as most analysts originally expected.

• To draw in advertisers and boost engagement, Netflix has pushed into live events. CNBC reported that the company was exploring a bid for the 2030 and 2034 FIFA World Cup U. S.

rights, and in talks to acquire online film ‌platform Letterboxd. • "The company has moved from disruption to ​dominance, and the challenge now is to sustain ​momentum from a much larger ​base," PP Foresight analyst Paolo Pescatore said. • Bloomberg News reported ‌earlier this month that Netflix viewers ​were less likely to ​return for later seasons, with hit shows such as "The Night Agent" and "Beef" losing roughly half or more of their audience after their first season.

• ​Comcast's NBCUniversal spinoff has ‌also fueled deal speculation, but some analysts expect Netflix to focus ​on smaller deals rather than another major acquisition.