Netflix faces mounting pressure after analysts downgraded its rating to Hold, citing weakening U.S. audience engagement. Average monthly viewing time per member has reportedly declined. Netflix’s share of overall TV viewing has also fallen.
These engagement challenges come as revenue growth slows and competition from platforms such as YouTube increases. Analysts worry the trend could weaken Netflix’s pricing power and future advertising revenue.
Netflix’s fourth-quarter revenue forecast came in below Wall Street expectations, adding to investor concerns. The stock trades significantly below its 52-week high as investors weigh the company’s ability to navigate a maturing, increasingly competitive streaming market.