Netflix explores live TV as top shows lose 70% of viewers

Netflix is preparing its biggest strategic departure from pure on-demand streaming as viewership for its top programs has declined by as much as 70 percent.

Netflix is exploring live television channels and bundling third-party streaming apps as viewership for its top shows has declined 30 percent to 70 percent, the Wall Street Journal reported Thursday.

Top executives discussed introducing live continuous streaming channels and bundling NBCUniversal's Peacock directly on the platform, people familiar with the matter told the Journal.

Netflix's U.S. television viewership share slipped to 7.8 percent in April, a multi-year low, according to Nielsen data cited by the Journal. The company's stock has fallen more than 40 percent over the past year as subscriber growth slowed and a bid for Warner Bros. Discovery's studio assets failed.

The shift toward live programming and content bundling would open new advertising revenue streams but also reflects weakness in Netflix's core on-demand content model. The company is also exploring sports rights including the World Cup, CNBC previously reported, and has begun incorporating short-form video from publishers to keep programming costs low.

The move comes as Netflix faces intensifying competition from legacy media rivals that have spent billions building their own streaming platforms. Disney+, Max and Amazon Prime Video have collectively eroded Netflix's once-dominant market position, forcing the company to reconsider its long-standing refusal to offer live linear channels. Netflix launched its advertising-supported plan in late 2022, and the ad tier has helped the company attract price-sensitive subscribers, though the 30 percent to 70 percent viewership decline for its top shows suggests engagement challenges persist even as the subscriber base grows.

The viewership decline for Netflix's top programs represents a structural challenge that goes beyond normal content churn. As the streaming market matures, consumers are rotating between platforms rather than committing to a single service, making it harder for any one company to maintain engagement levels. The 7.8 percent U.S. television viewership share in April has declined as competitors have invested heavily in original content and live sports programming.

Adding live channels would mark a fundamental shift for a company that built its business on the premise that consumers prefer watching content on their own schedule. Live programming would allow Netflix to sell advertising at premium rates during events, similar to traditional broadcasters, while also reducing subscriber churn by creating appointment viewing. The company's exploration of sports rights, including the World Cup, suggests Netflix sees live events as the most effective way to boost engagement.

Netflix shares fell 2 percent in after-hours trading Thursday following the news. The company has not yet disclosed a timeline for any live TV launch or bundling agreements.

This article is for informational purposes only and does not constitute investment advice.