As Netflix prepares to report its third-quarter earnings, investors are focusing on slowing user engagement, rising domestic churn and intensifying competition for viewers’ attention.

According to a Nielsen report, the streaming giant faces a fundamental shift in entertainment consumption as lower-cost, creator-led videos increasingly compete with premium scripted content.

YouTube, the leading streaming platform in the US by viewing share, commands nearly twice Netflix’s viewing time, underscoring the growing challenge from digital video competitors.

Analysts warn that slowing viewing hours and intensifying competition could test Netflix’s growth narrative. Ted Sarandos, the company’s co-CEO, recently acknowledged that Netflix “is not growing as fast as I want us to,” while suggesting that live programming could provide an opportunity to accelerate growth.

Market data also points to pressure on viewing time per member compared with previous years, partly reflecting a lighter content slate and competition for consumer attention.

Meanwhile, research firm Apptopia reported that Netflix’s US user churn rose 16.6% year over year in the third quarter, roughly twice the pace recorded in each of the previous three quarters.

Downloads across the US and Canada also fell 20%, pointing to potential challenges in attracting and retaining users.

Netflix has also taken steps to strengthen its cost discipline. The company cut about 6% of its workforce, a move that eMarketer analyst Ross Benes said reflected the streaming industry’s broader shift toward profitability.

Separately, the company underwent a content leadership change, with longtime content head Bela Bajaria leaving and former Disney executive Peter Rice taking over.

With subscriber growth maturing, investors are expected to scrutinize Netflix’s advertising-tier monetization and cost-management strategy for signs that these measures can offset slowing engagement and support profit margins.

According to data compiled by LSEG, Netflix is forecast to post its slowest third-quarter revenue growth in three years, with sales expected to rise 11.8% to $12.87 billion.

The results, due Tuesday, will offer investors a clearer picture of whether the company can sustain growth amid rising churn, shifting viewing habits and mounting competitive pressure.