Jo is away so Andy gets Emily perspective on Netflix's latest earnings report. In a recent strategic shift, Netflix are moving away from the subscriber count obsession and focusing on ‘engagement'. It's an interesting pivot, especially as the streaming giant grapples with the reality that their core markets are pretty well tapped out.

The big question now is how to keep demonstrating growth when you've already signed up most of the households you're going to get. Enter: engagement metrics. Netflix wants us to care about hours watched, not just how many people have accounts.

But that’s not the only strategic shift, Emily and Andy look at how vertical content and gaming fit into Netflix’s new playbook.

Meanwhile, the kids' content slate is having a moment. Ms. Rachel and Paw Patrol are quietly racking up serious viewing numbers, proving once again that children's programming might be the steady, reliable workhorse of any streaming service.

And then there's the possibility of Netflix acquiring Warner assets—a move that could beef up their content library and give subscribers more reasons to stick around. As Netflix figures out its next chapter, it's clear the playbook is evolving from "grow at all costs" to "keep people engaged and happy."

Takeaways:

1. The recent Netflix earnings report reflects a shift in focus from subscriber growth to content engagement metrics, indicating a new strategic direction for the company.
2. Despite a slight year-over-year increase in engagement, the overall performance remains underwhelming, suggesting challenges in sustaining growth in a saturated market.
3. The introduction of vertical video content is a significant move for Netflix, aiming to capture mobile viewership and compete with platforms like TikTok and YouTube.
4. Netflix's acquisition of Warner Bros. may provide necessary content diversification to enhance engagement and strengthen their position in the streaming market.
5. The Netflix kids' programming landscape is evolving, with significant shows like Ms. Rachel and Paw Patrol demonstrating strong audience engagement and popularity.
6. The ongoing development of Netflix's gaming strategy highlights their commitment to retaining viewer attention across multiple formats, enhancing overall user engagement.