HSBC Downgrades Netflix Amid Rising Competition From YouTube
On September 22, 2026, HSBC downgraded Netflix (NFLX) to 'Hold' from 'Buy,' citing a loss of viewership and market share due to competition from Alphabet's YouTube. According to Nielsen data cited in the report, YouTube captured 14.2% of U.S. TV viewing time in July 2026, while Netflix saw its share drop to 7.8%, down significantly from 8.8% a year earlier. HSBC analyst Mohammed Khallouf highlighted that YouTube's growing presence is eroding Netflix’s competitive edge and affecting engagement metrics crucial for retention and advertising revenue. The downgrade comes as Netflix faces challenges in maintaining viewer interest, with its English-language top shows experiencing an estimated 17% drop in viewing hours year-over-year. Additionally, the company has stopped reporting quarterly subscriber numbers since July 2026, shifting focus to annual engagement reports starting in 2027 and emphasizing revenue and profit instead of user metrics. Analysts are relying on external data sources that show declining trends for Netflix.
Topics: HSBC Investor Sentiment Netflix Streaming Wars YouTube