Investors reacted negatively after Netflix announced plans to cut its ‘What We Watched’ reports from twice to once annually starting in 2027.
Netflix (NASDAQ: NFLX) shares declined last week as concerns grew over the company’s decision to limit transparency. Despite strong Q2 results, including $12.6 billion in revenue and $4.2 billion in operating income, investors questioned the move to reduce viewership reporting frequency.
The company reported 13% year-over-year revenue growth, driven by membership gains, ad sales, and price hikes. Operating income rose 11% to $4.2 billion, while earnings per share reached $0.80. Netflix also narrowed its full-year revenue outlook to $51 billion-$51.4 billion, projecting ad revenue to double to $3 billion.
Management cited healthy member engagement but faced skepticism after announcing plans to scale back its ‘What We Watched’ reports. The change, effective in 2027, reduced the frequency from twice to once annually, leaving investors to question the rationale behind the shift.