Netflix may have a churn problem in the U.S. - Apptopia

Just ahead of Netflix's (NFLX) earnings report due out in October, there are concerns about the streamer's momentum in the U.S.

Netflix (NFLX) saw its churn rate in the U.S. spike 16.6% in the third quarter, according to Apptopia. The firm noted that for the three quarters before that, the churn rate had been running about 8% higher than the year before. While the U.S. churn has increased seven quarters in a row for Netflix (NFLX), the first six increases were all under 5%.

"Time spent is starting to slip too. Average Time Spent per DAU in the US was 73.2 minutes in Q3. That’s still above 70.2 minutes a year ago, but it has fallen for two straight quarters from 77.0 minutes in Q1. Rising churn normally pushes this number up, because lighter users tend to be the ones who leave, and the average climbs on its own. In Q3 it went down anyway," highlighted Apptopia director Adam Blacker.

The biggest issue identified for Netflix (NFLX) in the U.S. is with its youngest users. Apptopia data showed that Netflix (NFLX) users aged 17 to 25 spent 59.7 minutes per day in the app in Q3, the lowest of any age group and down from 68.7 minutes a year ago.

Shares of Netflix (NFLX) edged 0.8% higher in premarket trading on Wednesday.

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