Netflix faces questions about U.S. subscriber momentum ahead of its third-quarter earnings report, scheduled for October 20.
New data indicates U.S. subscriber churn rose to 16.6% in the third quarter. It was the seventh consecutive quarterly increase. Each of the previous six quarterly increases was below 5%, marking a sharp acceleration in churn.
U.S. engagement also weakened. Average time spent per daily active user declined for a second consecutive quarter. It fell to 73.2 minutes from 77.0 minutes in the first quarter.
The decline was most pronounced among viewers aged 17 to 25. They now spend the least time on the platform compared with other age groups.