Netflix trims content spend
May 15, 2023
By Chris Forrester
When your business is spending around $17 billion (€15.6bn) annually in new and acquired content, trimming $300 million might not be seen as much of a challenge. But that’s the amount Netflix wants to cut from its overall expenses and investment totals.
The WSJ reports that Netflix is targeting the $300 million in order to improve profitability in what is an increasingly competitive market. Last year Netflix reported it overall operating expenses were some $26 billion.
Cutting costs, and raising revenues by cracking down on password sharing, will likely make a big difference to the bottom line for Netflix. However, a recent management meeting stressed that there would no freeze on new hirings or additional layoffs.
Netflix in its most recent quarterly trading statement upped its target free cashflow to $3.5 billion from $3 billion.
The WSJ says that Netflix is already looking at reducing its Real Estate locations, lay-offs in some areas of operations and changes in salary levels.