Netflix shares fell over 11% in premarket trading after releasing its second-quarter earnings. The company reported $12.56 billion in revenue, a 13% year-over-year increase driven by advertising, membership growth, and pricing. Although revenue slightly missed expectations, earnings per share surpassed estimates. Netflix also announced price hikes implemented in March are performing well. The company narrowed its 2026 revenue forecast range. Notably, Netflix will now release its "What We Watched" report annually, shifting from a biannual schedule. This change aims to keep the focus on financial metrics like revenue and operating profit. Netflix explained that not all viewing hours contribute equally to business value, citing live programming as an example. This move follows the decision to cease reporting subscriber numbers in early 2025. Live broadcasts, while a smaller percentage of viewing hours, significantly impact new sign-ups.