Investing.com — Netflix Inc (NASDAQ:NFLX) is reportedly reconsidering its long-standing focus on pure on-demand streaming to combat a quiet decline in user engagement. According to a Wall Street Journal report, top executives discussed introducing live continuous streaming channels and bundling third-party apps like NBCUniversal’s Peacock directly on its platform.
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The strategy shift underscores growing industry pressure as Netflix shares remain down over 40% over the past year due to slowing growth and a failed bid for Warner Bros. Discovery’s studio assets. With its U.S. television viewership share slipping to a multi-year low of 7.8% in April, according to Nielsen data cited by WSJ, the pioneer streamer is moving quickly to protect its ad-supported business and prevent subscriber churn.
In an effort to keep programming costs low while defending its market position against heavy hitting legacy competitors, the network has begun incorporating low-cost content like short-form video from publishers. Additionally, CNBC previously reported that the company is exploring sports rights such as the World Cup.
Market reactions to the potential operational changes remain cautious, as Netflix stock dipped 2% in after-hours trading on Thursday following the news.
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