Report: Netflix invents cable TV
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While some people turn into their parents as they get older, some streaming companies turn into cable television. Netflix is considering adding live channels and bundles to boost sagging engagement, the Wall Street Journal reported.
The report states that Netflix is concerned about a decline in engagement (i.e., how often a viewer stays with a show, movie, or series), which can signal subscription cancellations. Among the solutions being discussed, per the WSJ, is Netflix edging closer to the very thing it disrupted—traditional TV:
- Executives are reportedly weighing adding live channels that constantly stream shows and movies of a specific genre, because the one thing Netflix subscribers were missing was a random weekday airing of Couples Retreat at 2pm.
- Also on the table: Bundling with other subscription-based streaming platforms and selling those packages through the main app, similar to what rivals Amazon and Apple already do.
Live TV means more ad sales: Netflix generated ~$1.5 billion in ad revenue last year and projects to double that this year. A new channel showing Golden Girls on a 24/7 loop, for example, would certainly increase that number.
Isn’t Netflix the No. 1 streamer? By subscribers, yes, but shares are down 40% over the past 12 months. Some recent projections have come in below analyst expectations, and its TV viewership in April reached its lowest level since May 2025, according to Nielsen.
Netflix is also reportedly in the running to purchase Letterboxd, the app for people who love movies and miss writing book reports. Sony, Paramount, and Reddit co-founder Alexis Ohanian are also reportedly showing interest in the app, per Puck News.
Letterboxd has more than 30 million global members ready to be targeted with ads by whichever corporation lands the social media site. LionTree, an investment bank handling the sale, is “floating” a $250 million valuation.