My wife and I recently had a serious discussion about whether we should unsubscribe from Netflix.

We are dissatisfied with their seemingly endless price increases – now the monthly fee for the premium package has risen to $26.99 – so we began to question whether this money is worth spending.

In the end, we decided to continue subscribing. We really enjoy the various crime-themed and sports documentary series from Netflix, and I can't do without the important NFL competitions. The children also love the content on there. But this discussion almost made us cancel our subscription! The fact that we even had to seriously discuss it is a bad sign for this once-unshakable streaming service.

Obviously, similar conversations are taking place around the world, as the viewership and revenue of Netflix are both slowing down. Some user engagement indicators have even shown a decline.

Netflix seems to have received this signal, as last week it was announced that the Chief Content Officer, Bela Bajaria, would be replaced. Just one day before this decision was made, Netflix also stated that it would cut about 1,000 jobs, which is the largest round of layoffs since 2022. Bajaria is known for enriching the content lineup of Netflix, including areas such as sports and live events, reality shows, and video podcasts.

But this streaming service has recently struggled to create what Wall Street refers to as a "hit in the water cooler" – that is, Netflix original series that can penetrate mainstream culture. Since the end of "Stranger Things," the situation in this regard has been rather quiet.

Moreover, Netflix is now facing competition that is not limited to other paid streaming platforms alone. It also has to compete with YouTube, TikTok, and Instagram for users' screen time, as these platforms offer a continuous stream of free video content.

In addition to the content issues, investors are still trying to come to terms with the super deal that Netflix missed.

Netflix and the "aftermath" with Warner Bros. Discovery

Netflix doesn't just want to create better original content on its own. It is also actively seeking the streaming media and studio assets of Warner Bros. Exploration Company, offering $72 billion in hopes of acquiring HBO Max as well as a series of beloved franchises IP.

After a fierce bidding war, Paramount Skydance won this bidding contest. One possible reason is that Paramount was willing to acquire the entire WBD, while Netflix only wanted the film and television production studio, as well as HBO Max.

What's disappointing is not only that Netflix lost to WBD. Investors once briefly envisioned a more powerful Netflix – one that could combine its vast distribution capabilities with HBO, "Harry Potter", DC, as well as Warner's other series assets. Today, Netflix still has to prove that it can create its own next major cultural event.

The third-quarter financial report may not bring much relief.

This brings us back to the resignation of Bajaria. Wall Street analysts almost unanimously believe that this move was made to take action before growth issues become imminent.

The timing – just a few days before the release of the quarterly financial reports – is not coincidental. If the market is surprised by the performance, Netflix hopes that investors will know that the company is already working on addressing this issue.

So, if market expectations for growth have already been lowered, what is there still worth paying attention to in the earnings reports to be released tomorrow? After the recent turmoil, the content will be the key. Will Netflix present a convincing roadmap for 2027 and growth strategies? Is it already ready for its next "Squid Game"?