Netflix morphs into same couch potato it smashed
NFLX•Netflix’s September-quarter revenue is projected to rise nearly 12% year over year, its slowest growth rate in 11 quarters, while it added 1.2 million subscribers in September, 25% fewer than a year earlier. The company cut about 1,000 jobs and its proposed $83 billion deal for Warner Bros. fell through.
1. Growth slows
Netflix’s revenue for the three months ending in September is projected to rise nearly 12% from a year earlier, the slowest rate in 11 quarters. Co-Chief Executive Ted Sarandos said last month he was not happy with the company’s growth trajectory. Netflix added 1.2 million subscribers in September, 25% fewer than in the same month of 2025, according to Antenna data.
2. Leadership and deal
Netflix cut about 1,000 employees, or 6% of its workforce, and is changing its leadership structure. Peter Rice, a former Walt Disney and Fox executive, will oversee content and film, replacing two ousted executives. Netflix’s proposed $83 billion purchase of Warner Bros. and HBO fell through; the assets were ultimately sold to Paramount.
3. A tougher landscape
Netflix once disrupted cable and satellite television with a direct-to-consumer internet service. The article says YouTube, TikTok and other apps are attracting younger and larger audiences, while Netflix trades at about 19 times projected earnings for the next 12 months, compared with six times for Comcast and 15 times for Walt Disney.
