TV

Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.

The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion.

Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion from $51.4 billion.

The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.

In a presentation with analysts, Netflix executives touted global expansion plans.

“We’re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,” said Spencer Neumann, Netflix’s chief financial officer, in the earnings presentation. “We believe we’ve got lots and lots of runway for solid growth ahead of us.”

Those comments appeared intended to assuage investors who’ve grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.

Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data.

The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% in April 2025, Nielsen said.

By comparison, YouTube has seen its share of the streaming audience grow. YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.

Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business. It could also undercut Netflix’s ability to raise prices in the U.S. and other countries.

Those worries have caused Netflix’s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. In after hours trading, the stock fell 8%.

“The engagement elephant continues to rear its head and investors are on edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,” wrote Morgan Stanley Research analysts in a research note.

On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and “we know not all hours are equal” and that engagement on its platform is “healthy.”

“The entertainment industry remains dynamic and competitive,” Netflix told shareholders. “We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.”

The Los Gatos-based company said it plans to allocate more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said.

In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller “I Will Find You,” which had 87 million views; and the romantic comedy film “Voicemails for Isabelle,” which garnered 71 million views.

Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.

As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game.

In 2022, Netflix had also faced investor pressure when it reported declining subscribers for the first time in more than a decade. That pushed the company to delve into other areas including advertising, gaming and cracking down on password sharing.

The 2026 FIFA World Cup semifinals are set to start, with France taking on Spain and defending champion Argentina facing England.

World Cup co-hosts U.S., Canada and Mexico will be watching from the sideline after being eliminated in the round of 16.

Here’s everything you need to know about the two World Cup matches being played Tuesday and Wednesday (all times Pacific).

Tuesday’s semifinal

France vs. Spain

France star Kylian Mbappe controls the ball during a World Cup quarterfinal win over Morocco on July 9.

(Lars Baron / Getty Images)

Where: AT&T Stadium, Arlington, Texas
Time: Noon
TV: Fox, Telemundo | Streaming: Fox One, Peacock

The buzz: This game would be far better suited as a final than a semifinal. Both are unbeaten — in fact, Spain is unbeaten in its last 36 games, one shy of the all-time record. For France, a win would put it in the final for a third straight World Cup while Spain is hoping to get back for the first time since 2010, when it won its only title. The teams got here in different ways. Spain has walked a razor’s edge, giving up just a single goal in the tournament and winning its last two games on late goals from substitute Mikel Merino. France has bludgeoned the opposition, scoring 16 goals while conceding just two. Kylian Mbappé has scored eight times and has 20 goals in 20 World Cup games, leaving him one back of Lionel Messi’s all-time record. It seems unjust that one of these teams will finish its World Cup in the third-place game.

Wednesday’s semifinal

England vs. Argentina

England’s (from left to right) Harry Kane, Jude Bellingham, and Morgan Rogers celebrate after defeating Norway in the World Cup quarterfinals on Saturday.

(Julio Cortez / Associated Press)

Where: Mercedes-Benz Stadium, Atlanta
Time: Noon
TV: Fox, Telemundo | Streaming: Fox One, Peacock

The buzz: Both teams are unbeaten and each survived scares in the quarterfinals, with England outlasting Norway in extra time in brutal weather in Miami and Argentina beating Switzerland in extra time in Kansas City. Jude Bellingham had a brace in each of England’s last two games to match teammate Harry Kane’s six goals in the tournament. Bellingham is the first player to score at least two goals in consecutive World Cup knockout matches since Diego Maradona in 1986. Argentina, the reigning champion, is unbeaten in its last 12 World Cup games, but four of its last six knockout-stage games have gone to extra time or penalties. Argentina has gotten eight goals and two assists from Messi in this World Cup.

We made it. With just days left in Phase I voting, this week marks the last issue of The Envelope, and the last edition of this letter from the editor, until we return with a crop of newly minted Emmy nominees in August.

Until then, may you have a summer as magical as a German soccer fan’s road trip through the American South — and enjoy reading the below highlights from our coverage.

Cover story: ‘Industry’

(Jason Armond / Los Angeles Times)

How do “Industry” stars Myha’la and Marisa Abela want the series to end? Let’s just say they are as unsentimental about their characters as series creators Mickey Down and Konrad Kay.

“I want there to be a huge statue of Harper Stern in front of J.P. Morgan,” Myha’la says of her hard-charging trader. “And a bird s— on her arm.”

“In her mouth,” interjects Abela, who plays Harper’s No. 1 frenemy Yasmin Kara-Hanani.

After the laughter ringing through the room subsides, though, Abela does allow for a moment of reverence — for the HBO drama if not for the disreputable people who populate it. “I don’t know if I need Yasmin to be happy at the end of it,” the actor says, reflecting on her character’s emergence as a Ghislaine Maxwell type in the Season 4 finale. “I know I want it to feel worthy of everything that has come before… What I love about the show is that [the writers] don’t often backtrack. You commit to something and then you have to live with the f— fallout. Which is savage.”

Read more of our conversation in this week’s cover story.

Writers Roundtable

(Christina House / Los Angeles Times)

Though he joined The Envelope’s 2026 Emmy Writers Roundtable to discuss the return of another beloved comedy, “The Comeback,” we couldn’t resist asking Michael Patrick King about the intense fan reactions to his “Sex and the City” revival “And Just Like That…”

“What happened was, it was really well made, but it wasn’t their Carrie,” he said. “Even though you stand behind it, you go, ‘Wow, that’s a surprise. I thought that they would be interested in 57-year-old women who still hadn’t figured everything out. And instead they wanted them to be 35 and still allowed to be lost.’”

For more juicy tidbits from the minds of of TV’s top writers, be sure to check out the full conversation, which also included Megan Gallagher (“All Her Fault”), Jonathan Glatzer (“The Audacity”), Andrew Guest (“Wonder Man”), Bruce Miller (“The Testaments”) and Sonja Warfield (“The Gilded Age”).

How Connor Hines won over Ryan Murphy

Writer Connor Hines, who translated the real-life relationship between JFK Jr. and Carolyn Bessette into FX’s major hit “Love Story.”

(Evan Mulling / For The Times)

While our On Writing series of screenwriter essays are always revealing — about the inspiration behind a series, the process of adaptation or the making of a major plot turn, to name just a few — I don’t remember one as candid about the art of the pitch as Connor Hines’. In this week’s issue, the writer behind “Love Story: John F. Kennedy Jr. and Carolyn Bessette” explains how he prepared to present his vision for the new anthology’s first season to one of TV’s most powerful producers, Ryan Murphy. As it turns out, landing the meeting is not the (only) hard part.

“I spent roughly three months in the trenches with [producers] Brad [Simpson] and Nina [Jacobson], deepening and refining my presentation [to Murphy] — one that I’d recite in the shower, on runs, at Trader Joe’s, while I drove,” Hines writes. “It was a crash course in storytelling, producing, and understanding the alchemy that propelled so many of Ryan’s shows into the zeitgeist.”

More stories from our June 16 issue

At Jimmy Kimmel’s annual monologue to advertisers at Disney’s recent upfront presentation, the ABC late-night host offered sympathy to his ousted CBS cohort Stephen Colbert.

“First, it’s bad enough to lose your job,” Kimmel said. “Imagine getting replaced by the owner of the Weather Channel.”

Byron Allen, the media mogul whose holdings do include the Weather Channel, laughed when the gag was repeated to him during a recent phone conversation. “I like Jimmy Kimmel a lot,” he said.

Allen, never lacking in self-confidence, can afford to roll with the jokes. Episodes of his 20-year-old syndicated program “Comics Unleashed,” a half-hour show featuring mostly lesser-known stand-ups sharing routines and stories, are replacing “The Late Show with Stephen Colbert” on CBS in the 11:35 p.m. time period starting Friday.

While it’s a triumph for Allen, 65, it’s also a sign of how the traditional late-night talk show — one of television’s most culturally influential formats — may no longer be sustainable in the era of streaming TV.

CBS said last year it canceled Colbert because it lost $40 million a year as the late-night viewing habit among audiences has eroded in the streaming era. Many in the TV industry are skeptical of the claim, believing Skydance Media wanted to silence the relentless Trump-bashing host in order to clear the government regulatory path for its acquisition of network parent Paramount. (The FCC’s approval of the deal came days after the cancellation was announced.)

Cedric the Entertainer, left, with Byron Allen on the set of “Comics Unleashed.”

(Allen Media Group)

But no one who has worked in late-night television in recent years can dispute how financial challenges are clouding the format’s future. Polished after-hours programs with a live audience, large teams of writers and producers and high-priced hosts are fighting off obsolescence as traditional TV audiences get smaller and ad revenues shrink. While CBS is the first to act, other networks have thought about getting out of the business altogether.

Since 2022, “The Late Show” lost 20% of its audience in the advertiser-coveted 18-to-49 age group, according to Nielsen data. Ad spending on all late-night television shows hit $209 million in 2025, down from $519.7 million in 2017, according to data from Guideline.

“Nothing is forever, especially in television,” said former network executive Ted Harbert, who oversaw the launches of “The Tonight Show Starring Jimmy Fallon,” and “Late Night with Seth Meyers” at NBC. “Digital tech is killing late night.”

The hosts of the programs and their funniest bits are arguably seen by more people than ever before thanks to clips replayed on social media platforms. But the revenue generated by digital viewing doesn’t approach what the networks get for audiences watching live on TV.

Over the last 10 years, late-night shows flocked to YouTube as a way to be a part of the national conversation and bring attention to the shows. Harbert believes the notion that the clips alone — which may feature a funny bit or a snapshot of a conversation with a guest — would help lure viewers to traditional TV was folly.

“The shows cannibalized themselves by making their show available in snack-size clips after the network airing,” he said. “And viewers obviously would rather watch a couple of five-minute clips than a whole show.”

Late-night shows were once among the most profitable programs on TV because of their ability to reach viewers in the 18-to-34 age group that attract premium prices for commercial time. But the same demographic was the first to gravitate to streaming platforms and abandon traditional TV which thrives on appointment viewing.

Daniel Kellison, a former producer for “Jimmy Kimmel Live” and “The Late Show with David Letterman,” noted that Kimmel — who has also been targeted by the Trump administration for his harsh barbs — has seen his TV ratings increase this year.

But the overall trend for the time period is still down. While Kellison believes Colbert’s cancellation is an effort by CBS to appease Trump, he agrees that the genre needs to evolve and adapt to the changing media landscape.

“There’s always going to be an audience for conversation around politics and life and these sort of shows will exist in different formats and I think it’s incumbent upon people to figure out how to present them,” he said.

CBS executives have said they want to develop a new network show in the late-night time period. But for the next year it will lease the slot to Allen. His company Allen Media Group pays CBS for the time, covers the cost of production and sells the advertising. He is also the host. The deal will erase whatever losses the network experienced in that TV block.

“Comics Unleashed” has been running in the 12:35 a.m. hour since CBS canceled “After Midnight” last year. When that show moves to the earlier time slot, it will be replaced by another Allen program, “Funny You Should Ask,” a comic quiz show hosted by John Kelley.

Allen said he has great respect for the late-night TV tradition. His mother was a tour guide at NBC in Burbank and he was able to hang out on the studio lot to watch Johnny Carson tape “Tonight.” Allen would get advice from Carson, whom he calls his hero and mentor, and eventually got a shot at doing stand-up on “Tonight” when he was 18 years old.

Allen even asked CBS to move the start date of “Comics Unleashed” to May 22 because it is the anniversary of Carson’s final show in 1992. But his sentimentality ends when it comes to the economics of programming in that time slot.

“We will be in profit,” Allen said of “Comics Unleashed,” which according to Nielsen has seen its audience grow in the 12:35 a.m. time slot by 26% since October.

Kimmel has accused CBS of dumping Colbert for “Comics Unleashed” because Allen’s show doesn’t partake in political humor that could alienate the White House as Skydance moves to close its next acquisition: Warner Bros. Discovery.

“I feel like CBS is turning 11:35 p.m. into a ‘least’ time slot,” Kimmel said at the Disney presentation. “Least as in least likely to offend the president with the rerun of ‘Comics Unleashed’ from 2007 featuring Paula Poundstone and Andy Dick.”

Poundstone and Dick are not among the 1,000 comedians who have appeared on “Comics Unleashed” over the years, many of whom went on to become stars. But not having the program dabble in political humor is a business decision.

The guests stick to storytelling and slice-of-life material that doesn’t date, which is why the episodes can attract an audience years after being taped. They don’t plug books, movies, concerts or any other elements that would be dated by future airings.

“Twenty years ago when we shot our first episode I said ‘we’re making it ‘I Love Lucy,’” Allen said. “I want these shows to be funny today and 20 years from today.”

Allen said his company will produce 130 new episodes of “Comics Unleashed” for the 2026-27 TV season.

But the reason the current set of late-night hosts leaned into politics so heavily in recent years is because it works.

When Colbert took over “The Late Show” from Letterman in 2015, the program’s ratings sputtered as the audience did not really know Colbert outside of the satirical figure he played on Comedy Central with his show “The Colbert Report.”

The night Trump scored his surprising win in the 2016 presidential race against Hillary Clinton, Kelly Kahl, then an executive vice president of CBS Entertainment, sent a text to Chris Licht, then executive producer of “The Late Show,” telling him it was “the best thing to happen to the show.”

Colbert found his voice on the program, which rose to No. 1 in the ratings and has been there ever since.

“Tracker,” one of TV’s most-watched shows, is uprooting its Canadian production and moving to Los Angeles.

The action drama, produced by Disney’s 20th Television, is among a slate of new and recurring series benefiting from California’s improved $750 million tax incentive program. The show’s fourth season, set to begin shooting this summer, will receive the state’s largest tax credit , at $48 million, according to the California Film Commission.

The production will film for 176 days in California, with 250 crew members and 275 actors on board. The tax credit is based on the show’s projected spending of over $129 million. Deadline first reported the news of the show’s relocation.

The show stars actor Justin Hartley and follows his character as he tracks down people for reward money. Ever since its 2024 premiere, the show has resonated with audiences. Its third season is currently airing and was the fourth most-watched program on linear TV as of late April, according to Nielsen.

“Tracker” is primarily set in the wilderness, making the move to California a fresh opportunity for the production to explore diverse landscapes as its backdrop. Due to the rural setting, the show is also eligible to earn an extra 5% tax credit bonus, in addition to the 35% base credit, on qualified expenditures incurred outside the designated 30-mile zone of the Greater Los Angeles area.

Before “Tracker” secured the highest TV show tax credit, season 3 of Amazon’s “Fallout,” which relocated from New York to Los Angeles, received a $42M incentive. Dan Fogelman’s new NFL drama “The Land” received $42.8M. Other productions that have benefited from the tax program include medical drama “The Pitt,” Disney’s new animated movie “Phineas and Ferb” and Netflix’s upcoming reboot of “13 Going on 30.”

More than 100 productions have received tax credits since the program was expanded last year in response to the continued migration of productions to other countries like Ireland, U.K. and Canada.

But film industry advocates say these efforts aren’t enough to fully revitalize U.S.-based productions and local film economies.

To that end, , U.S. Sen. Adam Schiff (D-Calif.) announced in March he is working on a bipartisan federal film incentive proposal that would be globally competitive.

“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” Schiff said.