The company expects operating income of €630 million for Q2, below analyst estimates of €684 million. It also forecast 299 million premium subscribers, falling short of the 302 million expected in the market.

Revenue guidance of €4.8 billion remains broadly in line with forecasts, while monthly active users are projected at 778 million, slightly above expectations.

Investors reacted quickly. Shares dropped about 6% after the outlook was released, as investors focused on slowing growth in paid subscriptions, particularly in Europe and North America, where recent price increases appear to be limiting further expansion.

In contrast, the first quarter showed stronger financial performance. Spotify reported revenue of €4.53 billion, up 8% year on year and in line with expectations. Operating income reached a record €715 million, supported by lower payroll-related costs. Gross margin rose to 33%, one of its highest levels to date.

User growth also held firm in Q1. Monthly active users climbed to 761 million, beating forecasts. Premium subscribers rose to 293 million, up 9% year on year, although slightly below market estimates.

Leadership is still under co-chief executives Gustav Söderström and Alex Norström following the transition earlier in the year, when Daniel Ek moved into the role of executive chairman.

Spotify is enhancing its artificial intelligence features to support engagement and retention. Tools such as AI DJ, AI Playlist, and Prompted Playlist have expanded across music and podcasts, while newer recommendation features aim to deepen personalisation.

Competition is intense, with Apple Music and Amazon Music both expanding similar AI-driven discovery tools, while streaming platforms more broadly are relying on recommendation systems to sustain user engagement.

The planned layoffs, which will affect less than 1% of the company’s workforce, had already been set in motion before Josh D’Amaro stepped in as chief executive in March.

As of the end of the 2025 financial year, The Walt Disney Company employed about 231,000 people.

Inside the company, the changes are tied to an internal restructuring known as Project Imagine. Asad Ayaz, who took on a bigger role earlier this year, is leading the initiative to bring Disney’s marketing teams under a single structure.

The aim is to reduce expenses and simplify how campaigns are run across its film, television, streaming and parks businesses.

This is one of the first major operational steps under D’Amaro’s leadership. He has told staff he wants the business to function as “one Disney”, with closer links between its divisions.

The cuts come at a time when the film and television industry is facing some challenges. Box office earnings have not fully recovered, traditional TV audiences are still falling, and streaming platforms are yet to deliver the level of profit many expected.

Other studios, including Sony Pictures Entertainment which recently said it would reduce its workforce as part of its own restructuring plans, are making similar moves.

Disney has been here before, in the years following Bob Iger’s return, the company cut thousands of jobs as it scaled back spending and reviewed its content strategy.

At the time, Iger said Disney had been producing too many shows and films in its bid to keep pace with streaming competition.

Its theme parks business still brings in strong revenue, but the company has warned of pressure on international travel to its US locations.

As it stands, Disney has not publicly commented on the latest round of expected layoffs.

The streaming company introduced Netflix Playground as a standalone app built for children aged eight and under.

Now available in the United States, Canada, the United Kingdom, Australia, the Philippines and New Zealand, a wider rollout is planned for April 28.

The app brings together games based on familiar children’s titles, including Peppa Pig and Sesame Street, as well as stories from Dr Seuss.

Users can play titles such as Playtime With Peppa Pig, Dr Seuss’s Horton! and Sesame Street games without an internet connection.

Netflix said the app is included in all subscription plans and does not carry adverts or in-app purchases. It also comes with parental controls to manage what children can access and how long they spend on the platform.

In a statement, John Derderian, vice president of Animation Series and Kids & Family TV at Netflix, said: “We’re building a world where kids can not only watch their favourite stories, they can step inside them and interact with their favourite characters. We’re creating a seamless destination for discovery, learning, and play.”

The launch adds to Netflix’s gaming focus, which began in 2021 but has yet to become a major source of growth.

Some of its better-known titles include games linked to its own productions, such as Squid Game, alongside licensed content like GTA: San Andreas.

Children’s content is said to be highly important for subscriber retention. Families are less likely to cancel when younger viewers are actively engaged, and gaming offers another way to keep that attention within the platform.

However, competitors such as Disney+ and Apple Arcade have stronger libraries of children’s characters and franchises than Netflix, which can be easier to convert into games.

Alongside the new app, Netflix confirmed new additions to its children’s catalogue. A new preschool series, Young MacDonald, is in development, while existing titles such as Trash Truck and The Creature Cases have been renewed.

More episodes from familiar names, including Sesame Street and Ms Rachel, are also on the schedule.

The company said children’s programming performs strongly on its service. Between 2023 and 2025, kids’ titles ranked among the most-watched content, making it one of the platform’s top genres.

With Playground, Netflix is now linking video and gaming. The aim is to keep children watching and give them something to do when the screen stops playing shows.

On Thursday, Warner Bros. Discovery said Paramount Skydance’s latest proposal of $31 per share qualifies as a “Company Superior Proposal” under its existing merger agreement with Netflix.

That decision gave Netflix four business days to respond with a better offer, but Netflix chose not to.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” said Netflix co-CEOs Ted Sarandos and Greg Peters in a statement.

“However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”

Warner Bros. Discovery must now pay Netflix a $2.8 billion termination fee to exit their agreement, however, Paramount Skydance has agreed to cover that cost as part of its revised bid.

The offer values Warner Bros. Discovery at about $111 billion. It includes the company’s film and television studios, HBO, its streaming platforms, gaming arm and cable networks such as CNN, TNT, TBS, Discovery and HGTV.

Paramount itself was acquired last year by Skydance Media, controlled by David Ellison. The deal was backed by his father, Larry Ellison, the executive chair of Oracle and one of the world’s richest men.

Larry Ellison has agreed to provide additional equity if required to support the financing.

Paramount will also take on roughly $33 billion of Warner Bros Discovery’s debt. The acquisition is backed by a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi and Apollo Global Management.

Netflix first moved on Warner Bros. Discovery in December with an offer worth nearly $83 billion for its studios and streaming business. Paramount countered several times.

At one point, it offered $108 billion for the full company, including its traditional television networks. Its latest $31-per-share bid ultimately prevailed.

Warner Bros. Discovery’s board said it reached its decision after consulting independent financial and legal advisers. While the Netflix agreement is technically still in place during the notice period, the board confirmed it has informed Netflix of its determination.

David Ellison has already warned that job cuts are likely once the transaction closes. His growing influence in news media has drawn attention, especially following changes at CBS, another asset under his control. Larry Ellison is a primary donor and supporter of President Donald Trump.

Shortly after, Netflix shares rose by as much as 10% in after-hours trading in New York while Paramount shares gained about 4.5%.

Warner Bros. Discovery has filed the required documents with the US Securities and Exchange Commission in relation to both the Paramount tender offer and its earlier agreement with Netflix.

Shareholders have been advised to review those filings in full before taking any action.

A source familiar with the matter said the revised bid improves on Paramount’s earlier $30 per share all-cash proposal, which valued the company at about $108.4 billion.

The exact terms of the new offer were not disclosed, but analysts expect it could fall between $31 and $34 per share.

Warner Bros shareholders are due to vote on Netflix’s $82.7 billion cash offer, priced at $27.75 per share, on 20 March 2026. Under the terms of that agreement, Netflix has the right to match any superior proposal.

Warner Bros’ board had asked Paramount to submit its “best and final offer” after rejecting a previous enhanced bid. That earlier proposal included covering Netflix’s $2.8 billion termination fee and adding a quarterly 25-cent per share ticking fee from next year to compensate investors for any delay in closing the deal.

The board said on February 10 that the offer still fell short and set a seven-day deadline for a revised bid.

Neither Warner Bros nor Paramount commented, and Netflix did not immediately respond to a request for comment.

The case centres on some of the most valuable assets in entertainment, including the Harry Potter and Game of Thrones franchises, as well as the HBO Max streaming platform.

Warner Bros also plans to spin off cable television assets such as CNN and HGTV into a separate company, Discovery Global. The company estimates the spin-off could be worth between $1.33 and $6.86 per share.

Netflix argues its proposal offers shareholders additional upside from the planned separation. Paramount, however, has said the cable spin-off that underpins Netflix’s case is effectively worthless.

Regulators are already reviewing the competing bids, with the U.S. Department of Justice examining whether Netflix’s proposal leads to antitrust concerns, including its claim that it needs Warner Bros to compete with YouTube, the most-watched distributor on American television screens.

As part of that review, officials are also looking at whether Netflix engaged in anti-competitive practices.

Paramount says it has secured foreign investment clearance in Germany and is in discussions with regulators in the United States, the European Union and the United Kingdom. The company maintains it has a clearer path to approval than Netflix.

Lawmakers in Washington have also spoken. Some Democratic senators warned that a Paramount deal would give the Ellison family control over CNN and CBS and could concentrate too much power over what Americans watch on television.

Others said either transaction could reduce consumer choice and harm creative workers.

For Netflix, a merger with HBO Max would create the largest global streaming platform, with roughly half a billion subscribers.

Co-chief executive Ted Sarandos has said the combination would be better for Hollywood because it would avoid job cuts in an industry already under stress from fewer productions and uneven box office returns.

He has also said consumers could benefit from lower prices through bundled offerings.

Paramount’s bid is backed by Larry Ellison’s financial support and ties to Oracle. Netflix, by contrast, has pointed to its strong cash reserves and the flexibility to raise its offer if necessary.

Investors such as Ancora Capital have accumulated a roughly $200 million stake in Warner Bros and are urging the board to engage more seriously with Paramount.

The activist investor warned that if the company refuses to reopen discussions, it will vote against the Netflix deal and hold directors accountable at the annual meeting.

Analysts at MoffettNathanson said earlier that an offer around $34 per share from Paramount would likely end the bidding war and “avoid further debate over Discovery Global’s value.”

Shares of Paramount rose 1.3% to $10.70 in extended trading following news of the revised bid.

The outcome now rests with Warner Bros shareholders. A vote in favour of Netflix would move that deal forward, though it would still face detailed reviews by competition authorities in the United States and Europe.

If Paramount’s higher offer is deemed superior, the board will have to decide whether to change its recommendation.

The development comes weeks after Warner Bros. Discovery agreed to sell its film studio and HBO Max streaming service to Netflix for $27.75 per share. 

That deal, signed in December 2025, values the company at about $83 billion.

Soon after, Paramount Skydance, which owns CBS and MTV, launched a hostile all-cash bid of $30 per share. The offer values Warner Bros. at $108.4 billion, including debt.

Last week, Paramount revised its proposal but did not increase the $30 per share price. Instead, it introduced new financial incentives. 

The company said it would pay shareholders a 25-cent-per-share quarterly “ticking fee” starting in 2027 for every quarter the deal is still pending after 31 December 2026. That payment would amount to roughly $650 million in cash per quarter.

Paramount also agreed to cover the $2.8 billion termination fee Warner Bros. would owe Netflix if it walks away from their agreement. In addition, it pledged to eliminate $1.5 billion in potential refinancing costs.

According to Bloomberg, members of the Warner Bros. board are discussing whether Paramount’s latest proposal could lead to a stronger result for shareholders. The board has not reached a decision and may still proceed with the Netflix deal.

Paramount, Warner Bros. Discovery and Netflix did not respond to requests for comment.

Both bidders are pursuing Warner Bros. for its film and television studios, vast content library and major franchises. These include Game of Thrones, Harry Potter and DC Comics superheroes such as Batman and Superman. The company’s streaming platform, HBO Max, is also a key asset.

Shareholders, including Ancora Holdings, which holds a stake of nearly $200 million, has said it plans to oppose the Netflix transaction. The firm argues that the board did not engage sufficiently with Paramount over what it considers a superior offer.

Both Netflix and Paramount have indicated they are willing to improve their terms to secure the deal, Bloomberg reported. The board is currently reviewing its options.

The company says the redesigned mobile experience, due in 2026, will lean heavily on short, swipeable video and new video podcast content, adjusting to enhance competitiveness with TikTok, YouTube and Instagram.

Long-form streaming alone no longer holds daily attention. Netflix wants its app opened more often, not just when viewers sit down to watch a film or series.

The redesign, announced during the company’s fourth-quarter earnings call, is being built as a long-term base rather than a one-off refresh. 

Co-CEO Greg Peters said the new app is meant to “better serve the expansion of our business over the decade to come,” adding that it will allow Netflix to “iterate, test, evolve, and improve” its mobile experience over time.

At the core of the change is a focus on vertical video. Netflix has been testing a feed of short clips since May, showing quick scenes from films and series in a format familiar to social media users. 

That feed is now set to expand. Peters noted where this is heading when he said, “You can imagine us bringing more clips based on new content types, like video podcasts.”

Netflix is no longer limiting itself to promoting shows and films. It is building a system where podcasts, clips and traditional programmes sit side by side, all designed to keep users scrolling.

The company has already taken its first steps into video podcasts. In January, it rolled out original shows hosted by well-known figures, including Pete Davidson and Michael Irvin. 

It has also struck deals with Spotify and iHeartMedia to bring established video podcast libraries onto the platform. This places Netflix in direct competition with YouTube, which is well-known for video podcast viewing.

Rather than presenting this as an imitation, Netflix has described it as a discovery. CTO Elizabeth Stone stressed that the goal is not to copy social platforms but to make it easier for people to find entertainment on their phones. 

Still, Netflix wants to become more like a daily habit, not an occasional destination.

Co-CEO Ted Sarandos addressed the new development facing the industry during the same earnings call. “There’s never been more competition for creators, for consumer attention, for advertising and subscription dollars, the competitive lines around TV consumption are already blurring,” he said. 

“TV is not what we grew up on. TV is now just about everything. The Oscars and the NFL are on YouTube…Apple’s competing for Emmys and Oscars, and Instagram is coming next.”

This reveals why Netflix is changing course. The company is no longer just fighting other streaming services but competing with every app that fills spare moments on a phone.

The strategy also has a commercial edge. In 2025, Netflix reported $45.2 billion in revenue, with advertising bringing in more than $1.5 billion as its cheaper, ad-supported tier gained ground. 

Short-form video and podcasts are well-suited to advertising, offering more frequent and flexible placements than traditional programmes. The company ended the year with more than 325 million paid subscribers.

The game, which will be exclusive to Netflix Games, is being developed and published by Delphi Interactive in partnership with FIFA. It is scheduled to arrive before the tournament kicks off in June next year, targeting fans who want a quick, social way to play rather than a complex console experience. 

The title will run on televisions, with players using their phones as controllers, keeping it within Netflix’s growing casual gaming ecosystem.

This looks like a calculated attempt to anchor Netflix’s gaming vision to an event that already commands global attention. Football is the most-watched sport in the world, and the World Cup offers built-in reach that few entertainment launches can match. 

FIFA itself said the partnership is meant to bring the “emotion and drama of the tournament” into a new interactive format.

This release sits within a gaming framework Netflix outlined earlier this year. In March 2025, the company said it would focus on four areas: story-led narrative games, multiplayer party titles, children’s games, and licensed mainstream properties. 

FIFA, alongside the upcoming James Bond game “007 First Light”, falls squarely into the licensed category, designed to attract audiences who already know the brand.

Despite years of spending and experimentation, Netflix’s games have largely failed to break through in the way its films and series have. Engagement has been low, prompting changes in leadership and a sharper focus on familiar names such as “GTA: San Andreas” and “Red Dead Redemption”.

The company’s vision may soon extend far beyond casual titles. Netflix is currently leading talks to acquire major assets from Warner Bros Discovery in a deal valued at $72 billion, or $82.7 billion including debt. The package includes some of the industry’s most respected studios, behind franchises such as “Mortal Kombat”, “Batman Arkham”, “Hogwarts Legacy” and LEGO games.

While Netflix co-CEO Gregory Peters has said the gaming studios are a “minor component” of the entire transaction, analysts argue their value could be strategic. Ownership of these teams would give Netflix a direct path into big-budget, premium game development, a space it has not yet fully entered.

Alongside this, Netflix has been building out cloud gaming technology and adding controller support, putting it closer to services like Xbox Cloud Gaming and PlayStation Plus. What began as a mobile add-on is gradually evolving into something more ambitious.

The FIFA game and the Warner Bros talks point to the same goal, which is keeping subscribers inside the Netflix ecosystem for longer. Games, unlike films, do not end after two hours.

The Swedish streaming platform expects operating income of €620 million for the fourth quarter, slightly above market expectations of €618.6 million, and revenue of around €4.5 billion. 

Spotify forecasts total monthly active users (MAUs) to hit 745 million by year-end, ahead of the estimated 737.3 million.

The upbeat outlook follows a great third quarter that saw double-digit growth across key metrics. Premium subscribers climbed 12% year-on-year to 281 million, while total monthly active users rose 11% to 713 million. Revenue increased 7% to €4.27 billion, exceeding analyst expectations of €4.23 billion.

Gross margin improved to 31.6%, with operating income reaching €582 million. CEO Daniel Ek attributed the progress to better execution and a clear focus on long-term growth. 

“The business is healthy. We’re shipping faster than ever. And we have the tools we need – pricing, product innovation, operational leverage, and eventually the ads turnaround – to deliver both revenue growth and profit expansion,” Ek said. 

“It all comes back to user fundamentals and that’s where we are: 700 million users who keep coming back, engagement at all-time highs. We’re building Spotify for the long-term.”

Spotify has been repositioning its business to improve profitability after years of aggressive spending on marketing and content acquisition. The company recently increased the price of its premium individual plan and streamlined operational costs to strengthen its bottom line.

At the same time, Spotify has rolled out several updates aimed at enhancing user engagement. The long-awaited lossless audio feature, part of the new “Supremium” tier, launched in October, offering high-fidelity sound that rivals Apple Music’s and Amazon’s premium options. 

The tier also introduces advanced playlist tools, AI-powered recommendations, and wider audiobook access.

The audiobook segment is one of Spotify’s fastest-growing categories. Listeners in this segment jumped 36% year-on-year, while total listening hours grew 37%. The company has continued to expand its audiobook catalogue globally, making it a major complement to its music and podcast offerings.

Aiming to tap into younger audiences and enhance discovery, Spotify also partnered with OpenAI in October. The collaboration allows users to link their Spotify accounts within ChatGPT and request music or podcast recommendations through conversational prompts, an integration designed to increase engagement and retention.

Beyond product expansion, Spotify is entering a new phase of leadership. Starting January 2026, Daniel Ek will transition to Executive Chairman as the company adopts a co-CEO structure led by Gustav Söderström and Alex Norström. 

The restructuring aims to enhance innovation and simplify decision-making as Spotify pushes deeper into audiobooks, AI, and next-generation audio streaming.

With user growth speeding up and operational discipline improving, Spotify appears to be turning a corner from years of narrow margins to sustained profitability, preparing for a strong close to 2025 and a more balanced strategy.

This comes after Canal+ secured a 94.39% stake in MultiChoice, completing one of the largest transactions in Africa’s media industry. Its buyout offer of R125 per share was accepted by more than 90% of MultiChoice shareholders, giving the French company legal grounds to execute a “squeeze-out” of the remaining investors in accordance with section 124(1) of South Africa’s Companies Act.

“Upon the exercise of the squeeze-out, MultiChoice Group will become a wholly-owned subsidiary of Canal+, and an application will be made for the termination of the listing of MultiChoice Shares on the JSE,” the companies said in a joint statement.

Once the delisting process is completed and approved by the South African Reserve Bank, Canal+ will initiate a secondary inward listing on the JSE. 

The group, which was listed on the London Stock Exchange in 2024 under parent company Vivendi SE, said the new listing will enable South African investors to retain access to its expanded global operations.

“A secondary inward listing will preserve South African investor access and market liquidity, allowing local investors to hold shares in a leading global media and entertainment company on the JSE,” the company stated. 

“It will broaden the investor base of Canal+, reinforce the company’s long-term commitment to South Africa and Africa’s creative economy, and support continued institutional exposure to the media sector.”

The $3 billion acquisition is the largest in Canal+’s history, establishing a combined entity that serves more than 40 million subscribers across nearly 70 countries in Africa, Europe, and Asia. 

The integration of MultiChoice’s regional dominance with Canal+’s global reach marks a major consolidation in the continent’s pay-TV and streaming industry.

“We are pleased with the overwhelming success of the offer,” said Canal+ Chief Executive Officer Maxime Saada. “Following this outcome, we will be moving ahead with a squeeze-out of MultiChoice shareholders and a subsequent secondary inward listing of CANAL+ in Johannesburg.”

Saada reaffirmed that the company’s expansion into Africa was driven by a strategic and cultural commitment. “Given the important role Canal+ will now play in South Africa and across the African continent, I believe it to be critically important that domestic investors have the ability to have exposure to it,” he said.

The acquisition is expected to boost investment in Africa’s creative industries, with Canal+ positioning itself as a long-term player in the region’s fast-evolving entertainment sector. 

As integration begins, both firms plan to announce changes to their executive structures to reflect the merger of operations and leadership across markets.

With this move, Canal+ strengthens its presence in Africa and also cross-continental media collaboration, uniting European capital with African creativity in a rapidly globalising entertainment industry.