Netflix (NFLX, Financials), the streaming company known for original series, films and live programming, is reportedly exploring live TV and bundled services as it looks for new ways to keep viewers engaged.
The Wall Street Journal said senior executives discussed the issue during Netflix's annual business review this spring. Viewer engagement had begun to soften even as the company continued to benefit from hit franchises such as Bridgerton and Stranger Things.
The concern does not appear to be subscriber losses. Netflix still has one of the lowest cancellation rates in the industry and continues to report stronger profits.
Instead, the company is looking at how often people use the service and how much time they spend watching. Live programming and bundled offerings could give subscribers more reasons to return regularly.
The report suggests Netflix may be willing to rethink parts of the strategy that helped separate it from traditional television.
For investors, the main question is whether new formats can lift engagement without adding too much cost or weakening margins.