Netflix vows stronger U.S. programming after earnings dip

Netflix's third‑quarter report beat many expectations, but revenue growth slowed and the company cut its outlook for ad revenue. The stock fell 6% after the release. Investors were already nervous about the slowdown in U.S. view‑hours.

Revised revenue outlook

Revised revenue forecast now expects $2.7 billion in ad revenue, down from the previously projected $3 billion. The change follows earlier investor concerns that Netflix is losing viewers to platforms such as YouTube and TikTok.

Co‑CEOs Ted Sarandos and Greg Peters said the company would push for stronger programming in the United States to accelerate view‑hours growth. Sarandos promised a “big buzzy show” that would drive global conversation.

The company also announced a major restructuring, laying off about 1,000 staff and replacing key content leaders. Chief content officer Bela Bajaria and film‑unit head Dan Lin were let go; former Disney executive Peter Rice was named chief content officer.

Despite the shake‑up, Netflix said its upcoming slate remains exciting, with titles ranging from a Thanksgiving Eve game to a new Quentin Tarantino film and the Spanish‑language Oscar contender La Bola Negra. The co‑CEOs stressed no fundamental strategy shift, only better execution in the U.S.