Netflix Considers Radical Changes to Boost Subscriber Engagement

Netflix is weighing up a radical change to its streaming services to keep viewers engaged, according to a report.

The proposal comes amid concerns over signs that subscriber engagement could be showing signs of decline. Those concerns have frequently been raised at company meetings, sources told The Wall Street Journal.

In an effort to boost engagement, Netflix executives have recently suggested adding live channels to the streaming service. The live channels would see films and shows from select genres being streamed continuously, sources said.

The source also claimed that third-party streaming services, such as NBC Universal’s Peacock, could be offered through the Netflix app. That would function in a similar manner to how other services are available through Apple and Amazon’s streaming platforms.

Netflix has undergone several changes in recent years, including introducing an ad-supported subscription tier in the U.S. in 2022. The streaming giant also expanded the number of live programming available to subscribers, with some WWE events and NFL games being viewable through the platform.

The company expressed an interest in acquiring Warner Bros. Discovery, but confirmed in February that it would not raise its offer, amid competition from Paramount Skydance. The latter was described as having a “superior proposal” by Warner Bros. Discovery’s Board of Directors, Netflix said in a press release.

According to The Journal, Netflix’s shares were down by more than 40 percent over the last 12 months. Its share of TV viewership plunged to 7.8 percent in April this year, analytics firm Nielsen told the publication.

Netflix, like many of its competitors, has come under fire in recent years over increases to subscription fees.

The company hiked prices earlier this year, raising the cost of its standard and premium plans by $2 per month.

According to Reuters, the streaming platform had more than 325 million subscribers in March.

Estimates from analysts at TD Cowen obtained by Reuters suggested that the new prices will lead to a 6 percent year-on-year rise in Netflix’s average revenue per subscriber in the U.S.-Canada region.

In a Q4 company shareholder letter obtained by Variety, Netflix revealed that it had reached over 325 million paid memberships.

The company also reported that it was serving an audience that neared one billion people globally. In addition to that news, the letter revealed that, during the second half of last year, a collective 96 billion hours of Netflix content was consumed by viewers.

The Independent has contacted Netflix for further comment.