NFLX Stock Drops After-Hours — Netflix Reportedly Weighs Launching Live TV As User Engagement Slows

• Internal discussions at Netflix have reportedly intensified surrounding a drop in subscriber viewing hours and completion rates, threatening the company's long-term retention. 
• The company is weighing the addition of live television channels and selling third-party services like Peacock directly through its application. 
• To strengthen its rising ad business, Netflix is acquiring lower-cost short-form videos, partnering with international broadcasters and eying specific sports events.

Netflix (NFLX) share price dropped 1.3% after-hours, following media reports suggesting the content streaming platform was considering a shift away from its core business model to explore live television channels and content bundles as it fights to keep subscribers hooked.

While the streaming pioneer remains the industry frontrunner, albeit with low subscriber churn and recent Emmy nods, internal metrics indicate a troubling dip in viewer engagement. Executives are growing increasingly anxious over how long users watch content and how frequently they finish series, The Wall Street Journal reported.

Netflix saw its share of U.S. television viewership hit a low of 7.8% in April, and its stock has plummeted more than 40% over the last 12 months following disappointing financial guidance.

Live TV To Save The Day?

Netflix leadership is discussing the addition of linear, live channels to combat low subscriber engagement, according to the WSJ report, which is focused on specific programs or genres. 

Furthermore, the company has explored offering external streaming subscriptions—such as NBCUniversal’s Peacock—directly through the Netflix app, a strategy long utilized by Amazon (AMZN), Apple (AAPL) and Disney (DIS).

These proposals contrast sharply with the strict focus and simplicity that co-founder Reed Hastings has historically championed. However, consolidation across the media landscape—including Fox’s (FOXA) purchase of Roku (ROKU) and Paramount’s (PSKY) pending acquisition of Warner Bros. Discovery (WBD)—has forced Netflix to adapt.

Netflix Eying Rights To FIFA Streaming

Netflix's expanding advertising unit, which generated approximately $1.5 billion last year and is projected to double this year. Unlike on-demand films, live broadcasts feature unskippable advertisements.

Rather than chasing expensive, full-season sports rights, Netflix is selectively targeting marquee events. People familiar with the situation told The Wall Street Journal that the company is currently discussing bids for the 2030 and 2034 FIFA World Cups.

Alphabet’s (GOOGL) YouTube and Disney (DIS) are also pitching for FIFA streaming rights, CNBC reported on Wednesday. 

NFLX Stock: Retail View 

Retail sentiment on Stocktwits was ‘neutral’ with ‘low’ message volumes at the time of writing. Retail chatter on NFLX stock jumped nearly 25% over the previous session. 

“When engagement cools, every platform reaches for the same tools: bundles, live events, sports,” one user said.  

NFLX stock has lost about 20% year-to-date. 

Read More: S&P 500, Nasdaq, Dow End Higher Led By Chipmaker Stocks As Investors Look Past US-Iran Hostility — ORCL, SBUX, WULF, PANW, FATE In Focus

For updates and corrections, email newsroom[at]stocktwits[dot]com.