Netflix (NASDAQ:NFLX) is considering the introduction of live television channels and expanded streaming bundles as executives increasingly focus on signs of weakening subscriber engagement, according to a Wall Street Journal report published on Friday.
The report initially weighed on the stock in premarket trading. However, Netflix shares later recovered and were trading 1% higher ahead of the market open.
According to the Wall Street Journal, Netflix executives raised declining engagement as a key issue during the company’s annual business review earlier this spring, despite continued profit growth and customer churn remaining among the lowest in the industry.
The report said engagement metrics, including viewing time and the rate at which subscribers finish television series, have since become a regular topic of discussion at senior management meetings.
Netflix shares have declined by more than 40% over the past year. In April, the streaming giant issued weaker-than-expected second-quarter guidance, including lower year-over-year operating margins. The Wall Street Journal, citing Nielsen data, also reported that Netflix’s share of U.S. television viewing fell to 7.8% in April, its lowest level since May 2025.
As part of its strategic review, Netflix executives have reportedly explored launching live channels that continuously stream genre-specific programming. The company has also discussed integrating third-party streaming services, including Peacock, into its platform, following a strategy already adopted by companies such as Amazon and Apple.
The report also said Netflix is evaluating potential bids for the broadcasting rights to the 2030 and 2034 FIFA World Cup.
Citizens analyst Matthew Condon said that if user engagement continues to weaken and subscriber churn begins to increase, Netflix could lose one of its key competitive strengths.
“This is ultimately what is prompting Netflix to explore Live TV and subscription bundle partnerships,” he added.
The strategic review comes as consolidation accelerates across the media industry, with Fox agreeing to acquire Roku in a transaction valued at approximately $25 billion, while Paramount continues to work toward completing its merger with Warner Bros. Discovery.