After the release of Netflix's second quarter, the market reacted cautiously. The company disclosed that the global viewing time in the first half of the year had increased by 2 per cent over the same period, to 97 billion hours, but that the weak revenue performance had led investors to focus more on whether the platform could continue to expand user usage over time.

The length of viewing hours increased to 97 billion hours in the first half of the year

From the data disclosed, Netflix's global viewing time for the first six months of the year was 97 billion hours, up from 96 billion hours in the second half of 2025, and slightly higher than about 95 billion hours in the same period last year. The increase, while still positive, was limited.

At the same time, Netflix indicated that participation reports, which would have been issued twice a year, would have been issued once a year after the first quarter of 2027. In a second quarter, the company stated in a letter to shareholders that participation was important for business, but the measure was not just a view of the total amount of time, but also the quality of content and diversity of supply.

Short video platform diversion.

Investors have recently become more concerned about whether Netflix can continue to increase its participation, as companies have already used many growth instruments in the past, including price increases and targeting password sharing. As these measures land, the market begins to observe what the platform can rely on to continue to drive income growth.

Netflix is also trying to expand the content pattern by approaching YouTube, including investing in video podcasts, on-line short video streaming and introducing about three minutes of cooking and travel video.

Mike Proulx, Director General of Forester Research, stated before the financial paper was released that it was becoming more difficult for consumers to access video content through short video platforms and to maintain user attention. In his view, Netflix might have realized that its largest competitors were not necessarily other pay-flow media, but free applications such as YouTube, TikTok and Instagram.

Some analysts think the fear is magnified.

However, he also pointed out that doubts remained as to whether the users really wanted Netflix to become more like YouTube. If the flow of media platforms were to grow in new forms of content, they might reduce the differential advantage that they would have built on quality content.

There are also analysts who believe that market concerns about long-time data may be excessive. According to Nelson, Netflix's monthly viewing at American television ends is still significantly ahead of other pay-flow media platforms. Data from the Subscription Analysis Company Antenna show that Netflix has a rate of withdrawal of about 2 per cent and is at a low industry level.

Morgan Stanley analysts wrote in a mid-July report that investors were too interested in watching the headline figure, and that the correlation between this indicator and revenue growth was not as strong as market fears.

Overall, Netflix is now facing more than just growth in subscriptions, but how to maintain content attractiveness and income performance in an environment where short video platforms continue to divert user time.