Netflix engagement has declined as customers spend less time watching and open the app on fewer days each month than they did a couple of years ago, people familiar with confidential company data said. The trend comes as Netflix faces slowing revenue growth and weaker-than-expected advertising sales.

Key Takeaways

  • Total app viewing time rose by a couple of percentage points in the first half of 2026 as Netflix added customers, even though the average customer watched less.
  • US cancellation rates have remained steady at 2%, according to research firm Antenna.
  • Netflix expects 2026 advertising sales to fall about $300 million short of its earlier projections.

What Netflix engagement data shows

Netflix measures how often customers use its app through a metric called qualified play days, or QPD. People familiar with the confidential data said customers are opening the app on fewer days per month than they did a couple of years ago.

The decline began after Netflix cracked down on password sharing in 2022, the people said. Executives initially assumed the change would be temporary because fewer people were using each account, but the trend continued. Netflix declined to comment on its internal metrics.

Mobile app research firm Apptopia also found signs of weaker usage: the share of US subscribers who did not open the Netflix app rose 16.6% in the third quarter from a year earlier.

Slower growth and steady cancellations

The usage decline has been modest and has not led to mass cancellations. Netflix said price increases had not caused abnormal spikes in cancellations. Antenna put US churn at 2% and said it remained steady.

Co-CEO Ted Sarandos told analysts on a call in the week before October 25, 2026, that US viewership was “just not growing as fast as it could or as fast as we’d like.” He and co-CEO Greg Peters also said the company was performing well outside the US.

Netflix reported its third consecutive quarter of slowing revenue growth and projected a further slowdown in the current quarter. It attributed the expected advertising revenue shortfall to a slower rollout of new products. Its shares had fallen about 29% in 2026 as of October 25.

Programming and leadership changes

Netflix has increased its programming budget and is expanding into podcasts and live sports to attract and retain customers. Executives have identified several possible reasons for weaker usage, including a new user interface, competition, programming and limited marketing outside the service.

Earlier in October, Netflix fired Chief Content Officer Bela Bajaria and film chief Dan Lin and cut 6% of its staff. Peter Rice, formerly of Walt Disney and 21st Century Fox, will lead its content strategy.

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