Sharp Tech with Ben Thompson · Friday, October 23, 2026
Netflix reported earnings showing fully saturated U.S. subscriber numbers with no additions this year, a 10% miss on engagement targets, and an advertising revenue miss down to $2.7 billion. Ben Thompson and Andrew Sharp discuss the company's reliance on continuous price hikes and how they face fundamental disadvantages in the ad-supported and engagement-driven internet landscape.
“Netflix reported earnings this week, and the company appears to be at a crossroads. They laid off 6% of staff last week, which included relieving their head of content and chairman of Netflix film.”
“They had a big advertising miss. I think it was $3 billion. They're going to come in at 2.7.”