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Streamer to Miss Ad Sales Target for Year
Variety • • general
Key Points:
- Netflix's Q3 2026 revenue reached $12.87 billion, up 11.8% year-over-year, but growth slowed to its lowest rate in three years, while net income slightly beat expectations at $3.66 billion.
- The company laid off about 1,000 employees (6% of its workforce) and restructured its content leadership, replacing chief content officer Bela Bajaria with Peter Rice and dismissing other senior executives.
- Netflix projected Q4 revenue of $13.4 billion, slightly below Wall Street expectations, and lowered its full-year 2026 advertising revenue forecast to $2.7 billion due to slower ad product rollout.
- Per-subscriber engagement has declined, with average monthly viewing time dropping from 66 hours in H1 2023 to 49 hours in H1 2026, prompting Netflix to focus on accelerating growth in view hours.
- In 2027, Netflix plans to expand its ad-supported tier to 15 new countries, including nine European nations and markets in Latin America and Oceania, starting with launches in March.
