Netflix stock gains as live TV, streaming bundle plans come into focus

Netflix Inc. shares NFLX edged higher ahead of Friday's opening bell after a report said the streaming giant is exploring live TV channels and streaming bundles as it looks to boost subscriber engagement.

The stock rose in premarket trading after initially moving lower on the news. Netflix has lost more than 39% over the past 12 months as investors have grown concerned about slowing engagement, disappointing guidance and rising competition across the streaming industry.

Netflix explores live TV and streaming bundles

According to a Wall Street Journal report, Netflix executives have recently discussed adding live TV channels that would continuously stream certain programs or genre-based content.

The company has also explored bundling third-party streaming services, including NBCUniversal's Peacock, into its platform, allowing users to subscribe through the Netflix app.

The discussions mark a potential strategic shift for the company, whose former co-founder Reed Hastings long emphasized simplicity and a streaming-first approach.

Netflix has also reportedly begun offering French broadcaster TF1's programming to subscribers in France and is considering similar partnerships across Europe and Latin America.

The company is also evaluating future sports rights opportunities.

According to the report, executives are discussing bids for the 2030 and 2034 FIFA World Cup while continuing to avoid expensive long-term league rights.

Declining engagement remains a key concern

The strategic review comes as subscriber engagement has become a recurring topic among senior management.

The Wall Street Journal reported that executives identified weakening engagement during the company's annual business review this spring, despite rising profits and industry-low customer defections.

Netflix's share of US streaming time declined to 17% from 21% over the two years through March 2026, according to Nielsen.

Its share of total US TV viewership also fell to 7.8% in April, the lowest level since May 2025.

The company has faced increasing competition from Disney+, HBO Max, YouTube, Tubi and Roku Channel, while investors have also questioned its failed pursuit of Warner Bros. Discovery's studio and streaming assets.

Netflix is expected to report earnings next week alongside its latest engagement report, which will provide updated viewership data for its programming.

Analysts watch churn and long-term growth

Citizens reiterated its Market Perform rating on Netflix, saying the company continues to benefit from the scale of its subscriber base and distribution network but faces growing questions over engagement.

Analyst Matthew Condon said rising churn could threaten Netflix's competitive position.

“This is ultimately what is prompting Netflix to explore Live TV and subscription bundle partnerships,” Condon said.

He also warned that if engagement weakens further, Netflix's competitive advantages could begin to diminish.

“The important thing for me is what is happening with ‘churn,’” said Uday Cheruvu, portfolio manager and analyst at Harding Loevner in the WSJ report.

“It may not be a concern yet, but it is something I am keeping my eye on.”

Netflix has also introduced lower-cost programming, including video podcasts, YouTube content and short-form videos from publishers such as BuzzFeed and Condé Nast, while continuing to expand its advertising business.

The company generated about $1.5 billion in advertising revenue last year and previously said it expects to double ad revenue in 2026.

Live programming could further strengthen that business because viewers cannot skip commercials during live broadcasts.