NFLX shares decline 41% over the past year amid steep audience erosion, prompting a potential shift to live streaming.
Netflix is considering a strategic pivot into live television and third-party streaming distribution, according to reports. The move follows a 41% drop in NFLX shares over the past year as top shows lose 30-70% of viewers between seasons, raising concerns over content sustainability.
The company recently drew 41 million viewers for Canelo vs. Crawford but faces higher costs and risks competing with ESPN and Amazon for live rights. Analysts question whether distribution changes can address underlying content weaknesses, as engagement metrics weaken.
A potential expansion into live TV could allow subscribers to access rival services like Peacock through Netflix’s platform, increasing user retention but deviating from its traditional streaming model.