Netflix Cuts $300M Spending to Boost Profitability

Red Section Separator By Rahul / may 15, 2023

[{"selector":"#anim-289754e7-f7e8-4de8-a047-b800bcd9205e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-38.328925452232035%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Netflix plans to cut spending by $300 million this year to improve profitability amidst intense competition, according to the Wall Street Journal.

[{"selector":"#anim-462c62bd-1bac-4719-85be-01769537eaac [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The company aims to control costs by reducing hiring, but no hiring freeze or additional layoffs are planned.

[{"selector":"#anim-cb0df634-5c58-434e-a55e-c7846446ba14 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] While the $300 million reduction is a positive step, it represents a small fraction of Netflix's $26 billion spending in the previous year.

[{"selector":"#anim-6f3c2da3-379b-4457-9db7-6b752998f003 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-9.70614322140753%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Netflix is also exploring other measures to limit expenses, such as reducing its real estate footprint and adjusting salary ranges.

[{"selector":"#anim-766087c0-bca6-4d18-933c-9ff87808dc54 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.812499744007886%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The company recently raised its estimated free cash flow for 2023 to at least $3.5 billion, up from $3 billion.

[{"selector":"#anim-ca1c1309-cb1e-445b-bafe-fe9e6fc8a27a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-0.014810123232089425%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ec19a69d-02ea-4bf2-a626-7a81a6ad97b9","keyframes":{"opacity":[0,1]},"delay":600,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Following its first-ever subscriber loss, Netflix introduced stricter measures against password sharing and launched an ad-supported plan called "Basic with Ads" to attract a wider audience. White Line

[{"selector":"#anim-19c30908-5483-42c9-a57a-d626f25786a8 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.25159617433349%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":4000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The new ad-supported plan puts Netflix in direct competition with other streaming services offering similar options, such as Disney+, Hulu, HBO Max, Paramount+, and Peacock.