Going all-in on streaming transformed Netflix from a DVD-by-mail business into a tech behemoth that at one point commanded a valuation of more than $500 billion.
Now, the company may be exploring a move away from its roots in a bid to boost engagement and revive its faltering shares. But it's a risky pivot.
Executives recently discussed adding live TV channels and streaming bundles to its platform as part of an effort to get subscribers coming back for more, The Wall Street Journal reported on Thursday, citing people familiar with the matter.
Netflix didn't immediately respond to a request for comment from Barron's.
Recently departed co-founder Reed Hastings often called for the company to keep things simple, and pivoting to live TV would mark a shift away from his streaming-first approach.
Barron's argued last month that a recent push into podcasts and videogames wouldn't be enough to turn the tide, given that they are niche businesses for the streamer right now.
So perhaps the only option left is to pivot to live TV -- the sort of twist that would have been unthinkable in Hastings' heyday.
The shares did get a slight boost from the news, climbing 1.2% to $76.40 ahead of Friday's opening bell. Futures tracking the S&P 500 were 0.1% lower.
The problem Netflix is trying to fix is its weakening market share, which has shrunk in recent years due to intense competition from rival streaming platforms like Disney's Disney+ and Alphabet's YouTubeTV.
Netflix's share of U.S. streaming time dropped to 17% from 21% over the same period two years through March 2026, per data from audience measurement company Nielsen.
That's become a dominant narrative on Wall Street in 2026, with shares slumping 20% as investors fret about weak engagement, the failed pursuit of Warner Bros., and disappointing second-quarter guidance.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 10, 2026 06:54 ET (10:54 GMT)
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