We’re watching less Netflix than ever, but expert predicts it’s still going to cost us more

Netflix is making billions in profit. And yet it’s laying off staff, cancelling shows and we’re spending less time watching it. It’s a confusing picture for the biggest streaming service in the world, and even more confusing for us as the subscribers. 

Netflix used to be Orange is the New Black and Stranger Things. It used to tell us that “Love is sharing a password”. But ever since the great password crackdown of 2023 (™), it’s felt like there’s been one change after another. 

The company agreed to a $82.7 billion bid on Warner Bros. before withdrawing. More recently, it laid off 6% of its workforce. And now, Netflix is grappling with how much time people are actually spending watching its shows and movies. 

According to estimates from investment bank Jefferies, the average Netflix user watched 66 hours a month in the first half of 2023. By the first half of 2026, this had dropped to just 49 hours. That’s around 26 per cent less time spent watching.

You might think this sounds like bad news for Netflix. But its latest financial results suggest otherwise. In the three months to September 2026, its revenue rose by 12 per cent to $12.87 billion. And its net profit jumped a whopping 44 per cent to $3.66 billion.

So, what gives? And what does any of this actually mean for the people paying for a subscription?

Netflix price increases are ‘inevitable’

Unfortunately, this doesn’t mean future price hikes are off the cards. Film Shrine spoke with founder of PP Foresight and streaming industry analyst Paolo Pescatore about what the future could look like for Netflix users. 

“Further price increases are inevitable,” he told us. “Netflix has demonstrated considerable pricing power, with limited impact on retention. However, there is a fine balance between extracting more revenue and delivering value.”

“More frequent, incremental increases are possible, particularly as content costs rise. Ultimately, subscribers will become less tolerant if they feel they are paying more without receiving better entertainment,” Pescatore continued. 

In other words, Netflix might be able to get away with charging us more for now. But if it wants us to keep paying, it needs to make sure the shows and films are worth it. 

“Advertising, paid sharing and price increases are sensible commercial decisions, but they cannot indefinitely compensate for weaker engagement or content,” he said. 

Okay, but what does this actually mean for Netflix’s content?

One of the biggest complaints every time the price goes up is that it would be worth it if there’s always something decent to watch. And it’s not like Netflix hasn’t faced criticism over its shows before. 

The cancellations of fan favourites like The OA, Warrior Nun and Mindhunter have all sparked backlash over the years. But with viewing time falling and hundreds of employees losing their jobs, does this indicate a change in quality for Netflix’s future shows and films?

According to Pescatore, subscribers probably won’t notice any immediate difference from the layoffs. “However, reducing resources could eventually affect innovation and the customer experience,” he explained. “The bigger concern is content quality.”

For context, most of the redundancies have been in Netflix’s product, technology, legal and HR departments. But there have been changes on the creative side too. 

Arguably the biggest is the replacement of chief content officer Bela Bajaria with Peter Rice. For the uninitiated, Rice is the former president of 21st Century Fox and chairman of Walt Disney Television. 

"Really no one is safe in Hollywood."

After laying off about 6% of its workforce this week, Netflix also replaced Chief Content Officer Bela Bajaria with Peter Rice. It marked the biggest round of layoffs at the streamer in four years.

TheWrap's @RogerWCheng and @adamchitwood… pic.twitter.com/Xhb7mcLDOv

— TheWrap (@TheWrap) October 16, 2026

Throughout his career, he oversaw some of the biggest shows on TV, including The Simpsons, Modern Family, The Bear and Shogun. Before that, he was President of Fox Searchlight Pictures, which released films like Slumdog Millionaire and Juno.

Under Bajaria, Netflix placed focus on expanding into live events and sports. This new shift could suggest it’s placing renewed focus on the kinds of films and TV series that made Netflix a household name in the first place.

And this is something Pescatore believes should be a key priority. “Netflix remains a highly profitable, well-oiled machine. These cuts represent a much-needed reset after years of expansion into areas that haven’t delivered meaningful returns,” he said.  

“The company has become distracted by too many initiatives and needs to sharpen its focus. Cost cutting is not a growth strategy. Ultimately, Netflix must prioritise compelling films and series that keep audiences engaged.”

Could the way we use Netflix change?

It’s not just what we’re watching that could change. Netflix is also trying to change how we find things to watch in the first place.

We’ve all spent ages browsing through Netflix with our dinner getting cold, only to give up and doom scroll instead.  YouTube and TikTok are now big competitors, meaning Netflix has a pretty good reason to make choosing a show easier.

In its latest financial report, Netflix highlighted improvements to its TV interface. It revealed plans to bring more shows from other broadcasters onto the platform. And during the earnings call, there were even talks to explore the possibility of integrating other streaming services into Netflix itself – a bit like Prime Video’s add-ons. 

Nothing is confirmed yet, but it could eventually mean having more of what we watch in one place.

So, is Netflix about to completely change?

According to Pescatore, probably not for the time being. When asked what to expect over the next couple of years, he replied, “Subscribers should expect further price increases, more advertising, improved content discovery, and a broader range of entertainment, including licensed programming and select live events.

“The core experience is unlikely to change significantly.”

Netflix’s latest report backs some of this up. It says original films and series remain central to the service. But it also points to more licensed programming and live events. And Netflix has made it clear that it wants people spending more time watching.

For subscribers, this could mean more choice. And it could also mean an easier time finding something to watch. But none of that matters much if there isn’t anything worth watching.

“Its biggest challenge is ensuring that subscribers continue to regard the service as indispensable rather than as another monthly expense,” he concluded. 

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Featured image credit: Netflix