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.

Shares fell over 16% in after-hours trading on Tuesday, the worst in more than twelve months.

The problem, now resolved, allowed certain ads to run at far lower prices than intended, affecting revenue and unsettling advertisers. “The digital ad tailwinds that propelled Meta and Reddit to blowout quarters turned into a light breeze for Snap,” said eMarketer principal analyst Jasmine Enberg. “There is little room for mistakes.”

Meta reported a 22% surge in ad revenue to $47.5 billion in the same period, while Reddit’s jumped 84% to $465 million. By contrast, Snap’s ad revenue grew just 4%, stressing its struggle to match competitors that offer greater scale and more precise targeting.

Snap said Ramadan’s timing influenced ad spend patterns in key markets, and the end of the U.S. “de minimis” duty-free import exemption prompted some Chinese advertisers to cut budgets. April saw a 1% drop in ad revenue, before partial recovery in May.

Chief Financial Officer Derek Andersen noted that June saw a wider rollout of Sponsored Snaps, short video ads appearing in user inboxes, across the United States and other markets. The company claims this is delivering “more user actions and deeper engagement” with ad content.

Revenue for the quarter ended 30 June came in at $1.34 billion, up 8.7% year-on-year and in line with expectations, but slower than the double-digit growth of the past five quarters. Net loss widened to $263 million from $249 million a year earlier. Average revenue per user fell short at $2.87 versus the $2.90 analysts had forecast.

Small and medium-sized businesses drove most of the advertising profits, while its subscription service Snapchat+ continued to expand, with a 42% rise in paying users to nearly 16 million. Daily active users increased 9% to 469 million, slightly above market estimates.

Snap forecasts third-quarter revenue between $1.48 billion and $1.51 billion, matching analyst consensus. The company is also restructuring engineering teams, with Ajit Mohan now heading ad technology.

Beyond its core platform, Snap is pushing into augmented reality hardware, aiming to launch its first standalone AR glasses in 2026. The device is intended to be lighter and more functional than existing products, with ambitions to beat Meta to market.