The average Netflix subscriber is watching approximately 9% less content than three years ago, according to estimates from Wells Fargo.

The company is facing pressure over the decline in viewer engagement, despite reporting strong financial results, record operating margins and relatively low customer cancellation rates.

It raises a question for investors, as how can the streaming giant continue growing when subscribers are spending less time watching its content. .

Viewer engagement is becoming increasingly important as Netflix moves away from relying on subscriber growth, adding advertising and higher subscription prices to drive revenue.

The company itself has previously argued that viewing engagement is a better measure of customer satisfaction than subscriber numbers. It stopped reporting subscriber figures last year and indicated it will publish viewing engagement data annually rather than twice a year.

However, the figures are raising questions about whether Netflix can maintain its growth as streaming markets mature.

The company’s advertising business is particularly exposed, with fewer hours spent watching content potentially translating into fewer opportunities to deliver advertisements.

Netflix has reportedly reduced its 2026 advertising revenue forecast to approximately US$2.7 billion, down from earlier expectation of US$3 billion. The company is blaming delays in its advertising technology rollout.

Wells Fargo expects advertising to account for more than a third of Netflix’s revenue growth next year, so attracting and retaining viewers is increasingly important. 

Competition is also intensifying with YouTube now the biggest destination for television viewing in the US. It attracts approximately twice Netflix’s share of viewing, according to Nielsen figures.

 

Netflix is competing not only against streaming rivals but also against free video platforms, TikTok and other online content.

So, does the company increase advertising? It could generate more revenue but risks frustrating subscribers. 

Spending more on original programming could attract viewers but would cost more and put pressure on profit margins.

Netflix could also increase subscription prices, however that risks pushing customers towards its cheaper advertising-supported plan, or into the laps of competitor streamers. 

After spending years convincing consumers to pay for streaming, its next challenge is convincing them to spend more time watching.

For investors, the question is no longer simply about the number of people subscribing to Netflix, but whether the company can continue commanding their attention, particularly when there are so many other eye-grabbing entertainment options around.Â