The streaming platform accounted for 7.8% of all television viewing time in the US this year, down from 8.8% a year ago. Meanwhile, YouTube’s share increased from 13.4% to more than 14%. Netflix is losing its share of US TV viewership.
These figures show that Americans are spending a smaller share of their TV-watching time on Netflix and more time watching YouTube, according to Nielsen data.
Yahoo Finance reported that the cuts come as Netflix deals with a declining audience share and a falling stock price. This growing competition is making it harder for Netflix to maintain its position in the streaming market, Yahoo Finance reported. Netflix is also facing pressure to reduce costs. Several departments will be affected by the job cuts. Netflix’s product, human resources (HR), technology and legal departments will be the main focus of the reductions. The company’s co-chief executive officers, Ted Sarandos and Greg Peters, shared the information in an email to employees. YouTube and other media companies are putting pressure on Netflix. YouTube has increased its share of US TV viewing while Netflix’s share has declined.
On Wednesday, Netflix announced plans to cut around 6% of its workforce, affecting roughly 1,000 employees. This is the company’s biggest round of job cuts since 2022.
Netflix will have to compete with these companies as the entertainment industry continues to consolidate, Yahoo Finance reported. Netflix is also preparing for stronger competition from a larger media company. The expanded Skydance media business now includes Paramount and Warner Bros. This brings major film and streaming properties under a larger corporate group. The streaming industry is entering a new phase of competition. Larger media companies are combining their businesses and streaming offerings, creating stronger competitors. At the same time, these companies are fighting for viewers against free online videos, making the competition more difficult for traditional entertainment businesses. Young creators are adding to the pressure on streaming platforms. Teenagers and young adults are producing and sharing videos for free on platforms such as Instagram , TikTok and YouTube. These videos compete for viewers’ time and attention, even though they are different from the films and television shows offered by paid streaming services.
