Netflix, the streaming giant, is considering launching always-on live TV channels, a move that could reshape the subscription viewing experience. According to a report from the Wall Street Journal, the company is exploring this new frontier to counter slowing engagement and increase watch time. Viewers could keep a channel running in the background without manually selecting a title, similar to offerings from Pluto TV and Tubi.
Netflix targets linear channels to boost advertising revenue
Adopting always-on live channels would represent a significant step toward the traditional television model, with potential benefits for Netflix's advertising business. Unlike on-demand content, live programming does not allow viewers to skip commercial breaks, offering advertisers greater exposure. This strategy could help Netflix diversify revenue, reducing dependence on subscriptions.
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Bundles and partnerships to expand the offering
The Wall Street Journal also reports that Netflix is evaluating bundle subscriptions similar to those from Apple and Amazon. Among potential partners is Peacock, NBCUniversal's platform. These collaborations would allow Netflix to offer a wider range of content without producing everything in-house, increasing user retention. Bundles with other streaming services could reduce churn rates, a growing problem for the industry.
Declining engagement pushes Netflix to innovate
The rumors about live channels come amid growing concern at Netflix about audience declines between the first and second seasons of its original series. According to Bloomberg, the company is increasingly alarmed by its difficulty maintaining interest in its flagship productions. Moreover, Netflix's share of total TV viewing slipped to 7.8% in April, per Nielsen. To counter this trend, Netflix has already experimented with short-form video, video podcasts, and a new gaming app for kids. Integrating live channels could be a strategic response to these challenges, offering a continuous stream of content that encourages users to stay on the platform.
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Competition and future prospects in the streaming market
If realized, the live channel project would put Netflix in direct competition with free ad-supported platforms like Pluto TV and Tubi. However, unlike those services, Netflix could leverage its vast library of original content to feed thematic channels. Additionally, the company is in talks to acquire Letterboxd, the popular social platform for movie fans, signaling a broader strategy to engage the community. The evolution toward a hybrid on-demand and linear model could redefine streaming dynamics, bringing it closer to traditional television but with the benefits of digital personalization.
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To delve deeper into how artificial intelligence enhances content personalization, read our article on Anthropic reveals Claude's hidden reasoning space, which shows how AI can improve recommendations. Also, to understand the challenges of adopting AI agents in business contexts, check out the analysis on 57% of enterprises with wrong AI agents. For an overview of consumption trends, Wikipedia offers a comprehensive article on Streaming television.
Source: https://techcrunch.com/2026/07/10/netflix-could-be-planning-always-on-live-tv-channels
