As Netflix reveals its second quarter earnings report on Thursday, investors will be focused on potential strategic moves by the streaming giant, alongside trends in engagement and advertising. A significant recent discussion centers on whether Netflix's current narrative is struggling with engagement challenges due to intense competition for viewer attention (e.g., YouTube) or if it is about advertising opportunities that have the potential to grow its business.

Concerns about engagement have put pressure on the company's shares, causing them to drop to a 52-week low in June. Recent rumors seem to have further solidified these existing worries. This comes after reports that the earnings announcement will address adding live TV channels to boost user engagement and that the company is considering other subscription services like Peacock.

On the other hand, Netflix's second quarter content calendar features returning favorites such as Beef Season 2, Temptation Island Season 2, Good Girl’s Guide to Murder Season 2, Four Seasons Season 2, and Love on the Spectrum Season 4, along with new series like Big Mistakes, the animated Stranger Things: Tales From ’85, and original films including Apex, Ladies First, and Little Brother.

However, beyond the Netflix stories seen on screens, what will the streaming giant's latest report set reveal about the impact of the FIFA World Cup (which could negatively affect engagement)? Additionally, what can be expected from the quarterly meeting with management regarding financial and operational updates? Management quotes that investors will be closely watching will shape the answers to these questions.