NEW YORK, February 4, 2026 – Netflix shares have delivered an amazing 2,580% return over the past 15 years (as of January 30), proving that disrupting an industry and creating a new category can be incredibly lucrative for investors.But the streaming giant now faces a growing challenge for viewer attention.
The Attention Economy: Where Viewers Go, Investments Follow
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A crucial metric for investors and company leadership is engagement-how much time users spend actively consuming content.
- Netflix saw a modest 2% year-over-year increase in viewing hours in the second half of 2025.
- Meta Platforms,parent company of Instagram,is experiencing considerably higher engagement growth,notably on its Reels feature.
- Instagram Reels watch time increased by more than 30% year-over-year in the U.S.
- Meta’s stock has outperformed streaming stocks over the past one, three, and five-year periods.
Interestingly, Meta Platforms (NASDAQ: META) is gaining ground on Netflix, and its stock has outperformed streaming stocks over the past one, three, and five-year periods. That company is Meta platforms (NASDAQ: META). In 2019, a significant shift occurred in consumer behaviour: adults began spending more time on their mobile devices than watching traditional television. Meta, with its long-standing focus on mobile-first content, is capitalizing on this trend, driving engagement and establishing a dominant position in the attention economy.
During the fourth-quarter 2025 earnings call, Meta CFO Susan Li highlighted the success of Instagram Reels, stating that watch time was up more than 30% year-over-year in the U.S. The company is also leveraging AI to refine its content ranking algorithms, aiming to deliver more personalized content based on users’ real-time interests.
The Time Commitment: Netflix still Leads in Daily Usage
While Netflix is experiencing slower growth in viewing hours, its crucial to note that Netflix households still dedicate, on average, approximately two hours per day to the platform-considerably more than the roughly 30 minutes the average person spends on Instagram daily. However,that 30% growth rate for Instagram is what should be concerning Netflix executives. The streaming service is responding by working to improve its mobile user interface and support vertical video formats.
What’s the average daily time spent on netflix? Netflix households spend around two hours per day on the platform, significantly more than the average time spent on Instagram.
Looking ahead: The Mobile-First Future
Over the next five to ten years, mobile devices are likely to capture an even larger share of our attention, potentially at the expense of traditional television viewing.This shift positions Meta, with its increasing proficiency in AI, favorably to drive greater engagement. This could present challenges for Netflix as it adapts to a changing media landscape.
It’s worth acknowledging that a direct comparison isn’t entirely fair, given Meta’s focus on user-generated content. However, even within the streaming industry itself, Netflix is lagging. Over the past three years, Netflix’s share of U.S. television viewing time increased by 20%. The broader streaming market,excluding Netflix,experienced a more significant 92% increase in penetration during the same period.
The takeaway for Netflix shareholders may be to moderate growth expectations moving forward. It’s a competitive field, and maintaining dominance in the attention economy requires continuous innovation and adaptation.
