What's happened
Viewership for Netflix's original movies fell 7% in the first half of 2025, despite an increase in available titles. Critics and audiences show lower ratings, and Netflix is shifting toward licensing films from other studios. The company’s overall viewership remains stable, but the future of its film strategy is uncertain.
What's behind the headline?
Netflix's declining original film viewership indicates a strategic challenge. Despite a growing library, audience engagement with these movies has waned, reflected in lower ratings and viewership hours. The company’s reliance on licensing suggests a recognition that its original films are not resonating as before. This could lead to a reevaluation of its film investment, especially if high-budget productions like "The Electric State" do not deliver expected returns. Meanwhile, Netflix’s success with series like "Squid Game" underscores a potential pivot toward series content, which continues to outperform films in audience engagement. The broader streaming landscape shows a shift toward free ad-supported services, which may further pressure paid platforms to innovate or diversify their content strategies. Netflix’s future will depend on whether it can reverse the trend through better original content or adapt to new viewer habits, possibly by integrating more licensed films or exploring new formats.
What the papers say
Business Insider UK reports that Netflix's original movies generated 7% fewer viewing hours in the first half of 2025 compared to the second half of 2024, despite an increase in titles. Critics and audiences have rated these films lower, with some high-budget productions like "The Electric State" receiving poor reviews but still garnering significant views. Meanwhile, other sources highlight the rising popularity of free streaming services like YouTube and Tubi, which are capturing a larger share of viewers as paid streaming prices increase. This shift suggests that Netflix’s struggles with original films are part of a broader industry trend where consumers are more willing to watch free, ad-supported content, potentially impacting the growth of paid subscriptions long-term. The company’s strategic move toward licensing external movies may be a response to these challenges, but it remains uncertain whether this will sustain its competitive edge.
How we got here
Netflix has historically relied on original films to attract viewers, but recent data shows a decline in their popularity. The company has increased its licensing of external movies, possibly to offset the drop in original content performance. This shift comes amid rising competition and changing viewer preferences in streaming.
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Peacock is an American over-the-top subscription video on demand streaming service owned and operated by the Television and Streaming division of NBCUniversal, a subsidiary of Comcast. Named after the logo of NBC, the service launched on July 15, 2020.