Netflix Cuts Engagement Reporting as Q2 Revenue Rises 13%

netflix Jul 17, 2026

Netflix reported higher second-quarter revenue and profit. It also announced plans to publish its detailed engagement report once a year beginning in 2027.

Netflix reported another quarter of revenue and profit growth on July 16. The company also announced a change in how often it will publish detailed engagement data.

Beginning in 2027, Netflix will publish its “What We Watched” report once a year, during the first quarter. It currently releases the report twice a year with its second-quarter and fourth-quarter results.

Netflix said separating the engagement report from earnings will keep the focus on revenue and operating profit.

Weekly Top 10 lists will continue. The annual “What We Watched” report will still provide title-level data and total viewing hours.

The move follows Netflix’s 2025 decision to stop regularly reporting paid memberships and average revenue per membership.

Netflix’s Q2 Results

Netflix reported second-quarter revenue of $12.56 billion, up 13.4% from a year earlier. Operating margin reached 33.4%, while net income was $3.4 billion.

The company said revenue growth came primarily from membership growth and pricing. Advertising revenue also increased.

Netflix expects advertising revenue to reach about $3 billion in 2026, roughly twice last year’s total. The company said its recent price increases performed as expected, with results similar to earlier increases.

Members watched more than 97 billion hours during the first half of 2026, up 2% from a year earlier. Viewing hours grew 1.5% during 2025.

Netflix described engagement as healthy, despite competition for viewers’ time from the Winter Olympics and World Cup.

The company expects third-quarter revenue of $12.86 billion. Analysts had expected about $13 billion. Netflix shares closed down 7.3% on July 17 as investors considered the forecast and the reduction in engagement reporting.

Why Netflix Is Changing Its Engagement Reporting

Netflix says the amount of viewing matters, along with the quality and variety of the programming members choose.

Its live programming shows why viewing hours need context.

Netflix expects live programming to account for just over 5% of its content spending in 2026. Those programs are expected to produce only about 1% of total viewing hours.

The acquisition results tell a different story. Live events generated six of Netflix’s 10 largest new-member signup days during the past five years. Netflix began offering live events in 2023.

Those results suggest live programming is playing an important role in attracting members, even though it represents a small share of total viewing.

Other programming may contribute more to retention or advertising. Combining all viewing hours into one number can hide those differences.

What Viewing Hours Can Miss

Engagement can provide an early signal of customer interest and cancellation risk. The total alone doesn’t explain why customers are using a product or what that activity contributes to the business.

A heavily used feature may help retain customers. A feature with less frequent use could encourage someone to subscribe.

More viewing can create advertising inventory. A live event can drive new subscriptions without producing many hours across the full year.

Cost matters.

Netflix’s live programming represents a larger share of content spending than viewing hours. The value of that investment depends on the subscribers it attracts and how long they stay.

Viewing hours can’t answer those questions on their own.

Subscription Insider Take

Netflix can report fewer engagement figures publicly. Inside the company, it still needs to know which programming attracts members and which keeps them.

The live programming figures make that clear. About 1% of viewing hours sounds small. Six of the company’s 10 largest signup days carries much more weight when evaluating acquisition.

The same issue appears across subscription businesses. A login, download or hour of use needs context. Did the customer renew? Did the activity produce enough value to justify its cost?

The metric should match the decision. A measure that helps explain acquisition may not be the right measure for retention or profit.

Sources

This article provides news analysis and business-planning information. Financial forecasts and forward-looking statements are subject to change.