Bloomberg reports that Netflix users are spending less time watching and opening the app less often
According to people familiar with the matter who spoke to Bloomberg, Netflix users are spending less time on the streaming service than before, and the number of days they open the app each month has fallen compared with two or three years ago. The company internally uses a “qualified play days” (QPD) metric to measure how often users open the app. The average amount of time each user watches has also declined; in the first half of this year, total viewing time on the app rose only by a few percentage points, mainly because of new users rather than increased viewing by individuals.
The trend began to emerge after the company cracked down on password sharing in 2022, and management initially believed it was a short-term phenomenon, but it has continued since then. People familiar with the matter said the decline in related metrics has raised concern among company leadership. The company declined to comment on the internal metrics. Co-CEO Ted Sarandos told analysts this week that viewing growth in the U.S. region was not growing as fast as expected or hoped. The company said price increases did not lead to an unusual spike in cancellations; according to research firm Antenna, U.S. churn has remained at about 2%.
Netflix’s stock price has fallen about 29% this year, with investors worried about slowing growth. The company’s share of TV viewing in the U.S. has stalled, as users turn to free services such as YouTube. According to data from Apptopia, the proportion of U.S. subscribers who did not open the app in the third quarter rose 16.6% year over year. Jefferies estimated that average monthly viewing time per member fell from about 66 hours in the first half of 2023 to about 49 hours in the first half of 2026. Nielsen data showed that YouTube accounted for about 14.2% of U.S. TV viewing time in July, while Netflix accounted for about 7.8%.
Original source:
Title: Netflix users are watching less, not opening the app as often Publisher: Bloomberg (reprinted by Moneyweb) Publication date: 2026-10-26 URL: https://www.moneyweb.co.za/news/tech/netflix-users-are-watching-less-not-opening-the-app-as-often/ Source type: media report (citing people familiar with the matter) Verification status: full text read for this item (2026-10-26) Supported content: users’ viewing time and opening frequency declined; QPD metric; total time rose due to new users while individual viewing fell; leadership concern; continued since crackdown on password sharing; Sarandos’s comment on U.S. growth; stock down about 29%; shift to YouTube; Apptopia data showing 16.6%.
Title: Netflix is telling investors not to worry, even though you’re watching less and less Publisher: The Verge Publication date: 2026-10-20 URL: https://www.theverge.com/streaming/1014826/netflix-earnings-q3-2026-viewing-time Source type: media report Verification status: relevant passages read for this item (2026-10-26) Supported content: Jefferies estimated monthly average viewing fell from 66 hours to 49 hours; Nielsen U.S. TV share data.
ABAB AI Insight
Competition in streaming has expanded from a contest among paid subscription services to a battle over time with free creator-content platforms. Netflix’s share of TV viewing in the U.S. has stalled, while YouTube has continued to widen its lead in Nielsen data, reflecting a shift in user time toward low-cost, continuously updated short-form video and creator content. Internal metrics show declines in individual usage frequency and viewing time, even as total viewing hours rose slightly with the expansion of the subscriber base, indicating that new users have not fully offset weaker engagement among existing users.
On the capital side, weaker engagement affects pricing power and the potential for ad monetization. The company has already reported slowing revenue growth for consecutive quarters and lowered its 2026 ad revenue outlook. Although churn remains low and price increases have not triggered an unusual wave of cancellations, a prolonged decline in viewing time could limit future room for price hikes and the quality of ad inventory. The company is responding by expanding its content budget, moving into podcasts and live sports, and reshuffling content leadership, but the effectiveness of these steps will depend on subsequent viewing data.
Compared with other streamers, Netflix previously relied on scale and its content library to maintain high engagement, but the expansion of free platforms in the living-room viewing environment has changed the competitive structure. Users can switch among multiple services, while creator content can be produced continuously without upfront production costs. The company has reduced the frequency of its reporting to once a year in an effort to shift investor focus from content performance to revenue and profit metrics, but the market’s sensitivity to engagement data has already been reflected in the stock price.
If individual viewing time keeps falling, the sustainability of ad revenue growth and subscription price increases will come under pressure. Whether the company can raise usage frequency through new content types and product improvements will determine its relative position in the competition between paid and free content.
ABAB News · Cognitive Laws
An increase in total viewing time can be driven by a larger user base, while individual viewing time and opening frequency better reflect changes in engagement among existing users.
The expansion of free creator-content platforms in TV viewing share has squeezed the amount of time paid streaming services can claim in the living room.
A decline in engagement metrics may limit future pricing and ad monetization room even if it does not immediately translate into high churn.