Netflix stock dropped more than 8% after the company’s third quarter outlook missed expectations.
The streaming giant announced Q2 earnings that exceeded expectations and revenue that was approximately in line with forecasts. Revenue increased by 13.4% year over year to $12.56 billion.
Netflix called engagement with its content “healthy,” saying live events were a top draw for members, who watched more than 97 billion hours of total content in the first half of this year. The engagement metric has come into focus after reports that viewership for Netflix series drops following the first season.
Yet, on Thursday, the company announced it would reduce the frequency of its “What We Watched” reports, which provide insight into engagement. After releasing Thursday’s report—which shows viewership data for the first half of 2026—Netflix will switch to publishing the report once a year in the first quarter starting in 2027.
In an earnings call, Co-CEO Greg Peters mentioned that the link between viewing hours and revenue or profit is not straightforward, as not all viewing hours have the same value.
Co-CEO Ted Sarandos stated that there is no significant change in the viewership of the second season of the series compared to the first season, countering an earlier report of a decline. He added, “Our season two fall off has actually slightly improved this year relative to last year, so no changes in release strategies,” during the call.
By CEO NA Editorial Staff
