Netflix won the streaming wars. Has it peaked?

Netflix should be on top of the world. The streamer has far more subscribers than rivals Amazon Prime, HBO Max or Disney+. But revenue and viewership growth has slowed, the streaming service is cutting staff and there are no hits like “Stranger Things” or “Squid Game” on the horizon.

What did the commenters say?

Netflix investors have been “increasingly worried” since the company’s failed bid for Warner Bros. Discovery, said The Wall Street Journal. While the service has the lowest cancellation rate among major streamers, Netflix has recently “struggled” with subscribers “spending less time watching programming on the platform.” That is a critical marker. Strong viewership tells executives “customers are satisfied and less likely to cancel their subscriptions.” Company stock has fallen 40% over the last year.

The problem is “keeping viewers hooked,” said The New York Times. Shows like “Beef” and “The Night Agent” are shedding audience in their latest seasons. Viewers are instead “drifting toward TikTok and YouTube for the attention Netflix used to own,” said Investing.com’s Jesse Cohen in an analysis, per the Times. While Netflix accounts for just under 8% of all U.S. viewing time, YouTube comes in at 14%.

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The service has also suffered a “brain drain” that is affecting its hit-making ability, said Drew Taylor at The Wrap. The Duffer Brothers, who created “Stranger Things,” have left for Paramount, and filmmakers like David Fincher and Noah Baumbach are also departing. The key to any revival “will be to reestablish those relationships.”

What next?

Netflix earlier this month announced layoffs of 1,000 employees, as well as the departure of several top executives, said Variety. “I know that we could do better,” said co-CEO Ted Sarandos on an earnings call, per the outlet.

Peter Rice, the newly installed chief content officer at Netflix, “understands talent relations” and will help make the streamer a place where Hollywood creators “love to do” their “best work,” Sarandos said. Can wooing hitmakers help Netflix find its way back to dominance? “Stranger Things” have happened.