Netflix Cut Down on Password Sharing. Now People Are Watching Less.

October 28 — According to a Bloomberg report on 25 October, Netflix users open the app on fewer days each month than they did a few years ago, and average viewing time per person has also fallen.

The trend began after Netflix started cracking down on password sharing in 2022. Management initially assumed it was temporary, since each account covered fewer people, but the trend has continued since. Less viewing time could mean users see less value in the service, or are spending more time on rival platforms.

Sources say Netflix uses a metric called QPD (Qualified Play Days) to measure how often people use the app. In the first half of 2026, total time spent in the Netflix app grew only a few percentage points — mainly because the user base grew, not because individual users watched more.

To attract new users and keep existing ones, Netflix has increased its content budget and expanded into categories such as podcasts and live sports. But co-CEO Ted Sarandos said on an analyst call this week that viewing in the US market “is genuinely not growing as much as it could, or as much as we expected.”

Data from the market research firm Antenna shows that Netflix’s US churn rate is holding at 2%, among the lowest in the industry.

Nielsen’s July 2026 “The Gauge” report shows YouTube leading with a 14.2% share of US television viewing — nearly double Netflix’s 7.8%.

The decline in engagement comes as Netflix’s share price has fallen more than 30% this year, with investor worries about slowing growth mounting. Its overall share of US TV viewing has also stalled as free services such as YouTube draw more users.

Financially, Netflix has now posted three consecutive quarters of slowing revenue growth and expects growth to slow further this quarter. It has also cut its ad sales forecast for the year, expecting revenue about $300 million lower than previously forecast, blaming slower-than-expected rollout of some new ad products. Reuters reported on 20 October that Netflix had cut its 2026 ad revenue forecast from $3 billion to about $2.7 billion.

Content performance is another challenge. Compared with rivals such as Apple TV, the company has released fewer hit shows in recent years, and second and third seasons of some existing titles have struggled to hold audiences. Management is weighing possible causes, including the new user interface, tougher competition, changes in content quality and insufficient marketing off-platform.

Third-party mobile app tracker Apptopia shows a similar trend: in the third quarter of 2026, the share of US Netflix subscribers who did not open the app rose 16.6% year on year — further evidence that some users are opening Netflix less often.

Facing growing investor concern, Sarandos and Peters have tried to stress the company’s operating performance and upcoming slate. At an all-hands meeting last week, Peters said the business is still growing and profitable, while acknowledging more work is needed to drive further growth.

Netflix has also reshuffled its content leadership. In an announcement on 15 October, the company said former Disney executive Peter Rice would become chief content officer from 26 October, succeeding Bela Bajaria, who is leaving, and would oversee global series, films and live events.

Earlier, the company also said it would cut about 6% of staff and changed leadership roles including the head of films. The changes come as Netflix faces pressure on content appeal, user engagement and revenue growth.