Netflix stock declined 7% following the release of its fourth-quarter earnings report, despite exceeding Wall Street expectations, according to analysis by streaming industry analyst Marion Ranchet. The discrepancy between financial performance and investor reaction centers on a slowing rate of engagement, with viewing hours per subscriber decreasing.
Ranchet, writing on Substack, reported that Netflix logged 96 billion viewing hours in the second half of 2025, a 1% increase over the 95 billion hours recorded in the prior six-month period. While representing growth, the marginal increase signals a shift in user behavior. Calculations based on this data indicate an average of 1.7 hours of viewing per subscriber per day, down from 1.8 hours the previous year and a peak of 2.2 hours in 2023.
This trend of increasing subscribers coupled with diminishing per-user engagement is a key concern, Ranchet argues. Netflix currently collaborates with 80 partners in the EMEA region, a strategy the company credits for its leading position in the streaming market, according to a report from Streaming Made Easy Live. But, this collaborative approach does not appear to be translating into increased viewing time per subscriber.
The Warner Bros. Discovery deal, which has been subject to scrutiny, is also contributing to investor skepticism. Netflix CEO Ted Sarandos has repeatedly asserted the potential for further growth, but has not detailed a clear strategy for achieving it, according to Ranchet’s analysis.
The engagement report, which Ranchet predicts will be discontinued within the next 18 months, provides a critical metric for assessing the health of the streaming service. The decline in viewing hours per subscriber suggests Netflix may be facing challenges in retaining audience attention and driving sustained usage.
Streaming Made Easy Live, an industry event held prior to IBC, highlighted the importance of collaboration in the streaming landscape. YouTube, for example, acknowledged its limitations in content production and emphasized its focus on providing a platform for creators. This contrasts with Netflix’s current situation, where partnerships are not yet demonstrably boosting individual user engagement.
