Netflix Needs Subscribers to Spend More Time Watching

Netflix has a bit of a problem of its own making. As the Wall Street Journal explains, the streamer stopped reporting subscriber numbers last year and instead encouraged investors to focus on engagement, the amount of time people actually spend watching. Alas, that metric has essentially stalled: It's down 9% over the last three years, which is a problem for a company increasingly dependent on advertising.

It also helps explain why Netflix stock has lost about half its value over the last year, even though the business seems otherwise strong, with one of the lowest cancellation rates in the business. Netflix has trimmed its 2026 forecast for ad revenue as it faces brutal competition for eyeballs. Its options—more ads, higher prices, or bigger content spending—each carry risks to its brand or profits. "Netflix has spent years proving that people will keep paying for it," writes David Wainer. "The harder task now is proving they will keep watching." Read the full piece.