Netflix Inc users are watching the streaming service less than ever, according to people familiar with the matter, the latest sign of engagement concerns for the world’s most valuable entertainment company.

Customers aren’t opening the app as many days a month as they did a few years ago, said the people, who asked not to be identified because the data is confidential. To measure how often customers use the app, the company uses a metric known as QPD, or qualified play days.

The average customer is also seeing less time. While total time on the app increased a few percentage points in the first half of the year, that’s because more customers were added. Everyone is seeing less.

The decline in those metrics has Netflix leadership worried. It began after the company banned password sharing in 2022 and, at first, executives assumed it would be short-lived, as fewer people were using each account. But the trend continues, raising the risk that people are placing less value in the service or spending more time with rivals.

Netflix has increased its programming budget and is expanding into new categories like podcasts and live sports to attract new customers and retain old ones.

The company declined to comment on internal metrics.

Co-Chief Executive Officer Ted Sarandos told analysts on a call this week that audiences in the U.S. in particular “are not growing as fast as they could be or as fast as we would like.” But he and co-CEO Greg Peters also said the company is doing well outside the U.S. and has a very healthy business model.

The decline in use has been modest and has not led to mass cancellations. According to Antenna, a research firm, the company’s churn in the US has been steady at 2% and is the best in the industry. Netflix said this week that the price hike has not caused an abnormal increase in cancellations.

Shares in Netflix have slipped nearly 29% this year as investors worry about the company’s slowing growth. Netflix’s overall share of TV viewing in the US has stagnated as subscribers flock to free services like YouTube. The company reported its third consecutive quarter of slowing revenue growth and expects it to slow again in the current quarter. Netflix said ad sales this year would fall about $300 million short of their previous estimates, which it blamed on the slow rollout of new products.

Netflix hasn’t produced many new hit TV shows and movies over the years and has struggled to attract viewers to second and third seasons of existing titles. Company officials have identified several possible reasons for the decline in usage, including a new user interface, increased competition, worse programming and the death of out-of-service marketing.

Aptopia, a firm that tracks mobile app usage, has indicated that Netflix customers are spending less time with the service. According to Apptopia data, the share of US customers who opened the app increased 16.6% in the third quarter compared to last year.

Sarandos and Peters have tried to assuage growing investor concern by saying the company is delivering on its metrics and showing a strong slate of programming ahead. “Two things could be true,” Peters said at a town hall with employees this week. “We have an enviably growing and profitable business. And at the same time we know that more work needs to be done to further grow.”

The company addressed its slowdown in the US by changing leadership. Earlier this month, Netflix fired chief content officer Bela Bajaria, as well as film chief Dan Lin, and cut 6% of staff. Peter Rice, a veteran of The Walt Disney Company and 21st Century Fox, will now lead the company’s content strategy.

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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)