Netflix is scheduled to report its third-quarter earnings after market close on Tuesday. Investors will be closely watching for updates on the company's ad-supported business, engagement metrics, and its stance on potential mergers and acquisitions (M&A).

The report comes as the media industry faces consolidation and intense competition. Last week, Netflix announced layoffs of approximately 6% of its employees and the departure of Chief Content Officer Bela Bajaria, amidst stagnating viewership and growing competition from platforms like YouTube. Despite these challenges, Netflix continues to post solid profits, largely aided by its cheaper, ad-supported tier, and remains the largest player in streaming. The company also announced new features for advertisers on Tuesday.