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The phrase "audience is narrowing" is correct and usable in written English.
It can be used to describe a situation where the number of people interested in or paying attention to something is decreasing.
Example: "As the competition increased, we noticed that our audience is narrowing, making it more challenging to engage with them."
Alternatives: "audience is shrinking" or "audience is diminishing".
Exact(1)
So the corporation's audience is narrowing.
Similar(59)
And even in Europe, the audience is narrow.
The target audience was narrow and homogeneous for a good share of the other shows, though.
But Dobbs is narrowing the gap, and his news program is one of the handful on cable whose audiences are growing, rather than shrinking.
The difference is narrowing.
But the gap is narrowing.
So the gap is narrowing".
My vision was narrowing.
You're narrowing it down.
Her audience is "a narrow band of people", Carr once observed, "who nonetheless number in the millions".
"Our audience is somewhat narrow — basically, all people who participate in the securities industry, which to some extent limits our access to some of the people who actually make market-moving news, like people in the C-suite or people in high government office," president Daniel L. Doctoroff said when the deal was announced.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com