• by Wayne Friedman , Staff Writer, 9 hours ago

Netflix is still showing growth -- at least when it comes to its overall viewing share of the media/TV/streaming world, according to Nielsen measures -- as it keeps pumping out more content.

But is that enough? There has been some concern that core Netflix daily viewing engagement has been bumpy -- now hovering around 1.4 to 1.5 hours a day (84 to 93 minutes).

And that has analysts now asking questions akin to those being asked of legacy media companies only a few years ago. It’s an old-school question that any TV network may be asked:

Does Netflix need a "hit"?

Actually, this ends up being a metaphor that goes beyond just finding the next "Squid Game" or "Stranger Things." This comes as Netflix stock has been dropping --  around 21% year-to-date, now at $71.85 (in midday Thursday pricing).

The irony here is that investors' response was to cheer the fact -- initially -- when Netflix backed out of the deal to buy Warner Bros. Discovery. It was one of those "nice to have" purchases, but not mandatory for growth.

But perhaps other factors are at play -- especially changes in the new media ecosystem. This includes Fox Corp. just announcing it is acquiring Roku. Is that why some alarm bells are ringing?

It seems that with the pursuit for WBD, Netflix has been looking around deals with mini-major TV/film studio, Lionsgate -- as well as with Roku, according to reports.

The bottom line and the bigger question would be: What does Netflix do next?

More video podcasts, "vertical" video (short, mobile-based video), live sports events, or gaming?

Netflix has been doing that, but perhaps slowly for some. That doesn’t seem to have enough future heft for the company, at least when it comes to investors' interest.

Perhaps it should say make a bigger, splashier play -- using its strength -- premium content, and focus more on competing with growing streaming competitor YouTube.

For example, it could consider buying a major growing social-media platform, like a TikTok? Or X? (Elon seems to have his attention elsewhere -- in space). Perhaps Netflix needs to be more of a premium YouTube on steroids.

This all comes down to a core daily viewer engagement for some -- which seems to be higher and growing at YouTube.

Estimates from BlankSpaces in February of this year show that viewers spend 48 to 99 minutes per day on YouTube. And Gen Z users spend more. They can spend 99 minutes to 111 minutes. Right behind YouTube is TikTok.

Premium content is where Netflix still has an advantage over YouTube. But it needs to find more audience engagement -- with Gen Zers, of course, and also with other audiences -- to tune in.

Netflix must be thinking about what the Fox/Roku combination will mean to its business.

Right now, that deal would rocket Fox Corp.'s total viewing share into third place -- with Netflix pushed down.

Netflix needs to find a way to step on the gas.