Netflix is under pressure to reassure investors about its growth strategy when it reports second-quarter results on Thursday, as user engagement has faltered amid growing competition. The streaming giant is expected to report a 13.6% rise in revenue to $12.59 billion, its slowest growth in over four quarters, with adjusted earnings per share likely totaling 79 cents, according to analysts polled by LSEG. Its advertising business, seen as crucial to growth as the boost from the password-sharing crackdown and price hikes fades, is expected to bring in $705.8 million in revenue, though Emarketer analyst Ross Benes noted the ad business has not grown as strongly as most analysts originally expected. To draw in advertisers and boost engagement, Netflix has pushed into live events, with CNBC reporting the company was exploring a bid for the 2030 and 2034 FIFA World Cup U.S. rights and is in talks to acquire online film platform Letterboxd. Bloomberg News reported earlier this month that Netflix viewers were less likely to return for later seasons, with hit shows such as "The Night Agent" and "Beef" losing roughly half or more of their audience after their first season.
Netflix IncUser engagement slipping and audience retention declining for hit shows, threatening subscriber growth.