Netflix cuts $300 million in spending

Netflix has been profitable for years, but the streaming wars have forced platforms to think of new ways to stay profitable without relying solely on subscription growth. For this, the company intends to reduce expenses by $300 million this year, according to Wall Street Journal.

Cost cutting

Context

The $300 million cut, however, is a small part of Netflix’s budget. Last year, the company’s expenses were about $26 billion.

The decision comes amid new forecasts of how much the platform should generate in free cash: after the first quarterly report of 2023, it went from $3 billion to $3.5 billion. With the delay in restricting password sharing, the measure’s revenue is expected to come in only in the second half.

Netflix strategy

Netflix has been thinking about the changes for some time.

The company reported its first loss of subscribers about a year ago, sending the stock tumbling. Then, it considered including ads on its platform, which drove the roles up: the high in 2023 is 17%.

Plus, Streaming has been thinking of other ways to cut costs and profits: It’s already laid off, reduced its real estate footprint, changed salary ranges for certain positions, and tried new ways to pay for catalog content.

What Netflix’s next decision to cut spending further remains to be seen.

With information from Wall Street Journal

The post Netflix will cut expenses by $ 300 million appeared first on Olhar Digital.

Source: Olhar Digital

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.