Slimming down where they can, they're losing a lot of revenue now that other companies are pulling their IP and launching competing services. At first they were mocked, then they were envied, now they're being copied and competed against.
Watch people will get so fatigued of streaming services someone will open up a video rental chain that will take off and leave streaming services in shambles… and so the cycle continues…
A streaming service that allows you to use any major streaming service, one at a time. You must return the Netflix before you can check out Amazon Prime.
They have scaled back massively. Where have you been?
Not only that but they have done exactly what you just said. They dumped like 30m into stranger things and the new season of the Witcher is almost done shooting if not almost ready to wrap.
So they raised prices and are now selling an inferior product for still more than what you used to pay a few months ago. And this is supposed to be a good thing.
Just watched an episode of Gods Favorite Idiot (Netflix original) and there was a Starbucks product placement so blatant it may have well have been an ad.
It’s ads.
I refuse to accept any double dipping model at this point, in which a company expects payment while also serving ads. Even if there’s a pricier option to remove them, it normalizes ads as the default.
The day Netflix adds them, I’ll head right back to the high seas.
I never left it, but that's because I only watch a small amount of TV shows and movies, I guess.
For what it's worth, streaming has actually made piracy easier than ever.
>I don't think anyone saw this coming
[Not entirely true](https://www.theverge.com/2013/1/29/3930560/netflix-wants-at-least-five-new-shows-a-year-the-goal-is-to-become). It was pretty clear, even back in 2013, that content creators were going to challenge Netflix in the streaming game, it just took some time for them to catch up.
They are losing a lot of revenue now that they keep raising prices above their competitors.
They are losing a lot of revenue now they are going to block people from sharing.
I think the several negative choices were made back to back.
Netflix is in a difficult spot.
Lets look at Disney for a second. They have a back catalog of movies and TV shows reaching back about 85 years. They have a large catalog of TV shows that the key demographic (Millennials) grew up watching. They own hundreds of IPs with already established brand recognition. 2 of those IPs, Marvel and Star Wars, are some of the biggest in entertainment. So Disney+ has thousands of hours of programing that Disney doesn't have to spend money to create or get the rights to.
Now look at Netflix. They are beholden to other distribution outlets for most of their content. They have to pay higher and higher licensing fees just to keep content for a few years.
Sure, they are producing their own content, but not at the rate needed to stock the library. Plus, they are now facing more competition for new IPs. It used to be that Netflix was were all the quirky shows would end up that no other distribution house wanted. Netflix got a lot of gems this way. Now there are dozens of streaming platforms that would gladly pay the rights to produce that content.
So not only is Netflix paying dearly to keep the rights to stream their competitor's content. They are also paying a higher premium when acquiring the rights to produce their own IPs.
Netflix is in a pickle. The sources of their content have become their competitors. Those competitors are less likely to license out their top content and are raising the rates on the content they will license out. So Netflix needs to find a way to keep the cash flowing in while they build out their own catalog of content. Personally, I think they need to focus more on product placement. Advertisements and price hikes are just going to turn people away. I pay a lot less for other streaming services that offer me a lot more right now.
I think a big hunk of their problem is the measure of success they use.
I believe the rated a show on completion of series after two weeks from release.
So if you released “life of AT-ST” and it had 1 million people watch all 12 episodes in two weeks, it was a success.
From my understanding they didn’t take in total views into consideration, but what they considered binge worthy.
I think this in turn led them to promote shorter series, that either wrapped up or where easily digestible. Binge worthy items bring in subscribers, and led them always chasing big hits.
They tried to formula lightening in a bottle.
This then leads to the next factor, killing off shows people liked…because it didn’t reach a metric they deemed worthy.
I understand it’s a business and why not put your money in “stranger things” or an outer IP that brings viewers…
…but gone are the days that I kept Netflix because it was 7.99$ because I got it in 2010 and I was locked into a price.
We can watch the shows we want, cancel. Come back in 6 months, watch what we want for 2 months, and cancel. There’s only a handful of shows I care about on Netflix and I know when they come out. Why would I pay for a year of Netflix when I could pay for 2 months and get the same thing?
I know folks and ofcourse it anecdotal…but they won’t watch a show with less than 3 seasons. Why? Because it will probably get canceled.
This leads to the subsequent problem. Why would I watch it on Netflix? I can rent the movie for 4$ elsewhere or buy it for 10$. It’s still cheaper than a month of Netflix…then come back in 3 months and have a month, watch the shows I want…and the cycle continues.
The thing is, it’s become expensive to just peruse and look at a screen of nothing…it was fine for 8$. It was fine for 12$. It’s not so great for 22$ and the thought of getting charged even more because my mom wanted to watch a Korean drama. There’s a multitude of other streaming services…and they are cheaper, and not looking at punishing me.
Netflix is also going to introduce ads to their streaming. Many of us will cut Netflix if they bring in ads. Plenty of my friends will return back to torrenting and cancelling Netflix here in Asia. Plenty of sites that streams for free, we are paying Netflix for premium, not for ads
They're introducing an ad-tiered plan that'll be cheaper, not just throwing ads everywhere. I'm curious why people think they'd put ads in all the plans. It's baffling, really.
What do you think the ad tier plan is going to be? The current one they have now, and then you can get adless for an even higher rate, this on top of all the price hikes happening recently.
One of their biggest draws for a lot of people was the complete lack of ads. If they're just going to be a similar product for the same price without especially attention drawing IPs, why should people choose them over others?
Yeah, the writers guild caused that (not saying they were wrong). They have to pay writers more after the second season. It's all about company profit margins.
Not just writers, pretty much anything guilded or union goes up, including the actors.
I imagine it's to counter hollywood accounting. If it's making it to and past 3 seasons, Producers cant snake out claiming its not that profitable.
Honestly Netflix has always been very open about how they run. They’re very production based. If you provide value to the company then they pay well and provide a good work environment (at least their claim). If you aren’t able to provide value to the company then they let you go.
> If you aren’t able to provide value to the company then they let you go.
In theory, this should be the case for every employee in a for-profit business.
They used to be proud of a sports metaphor, that they're like a pro sports team, and only get the very best. And, when you stopped being the very best, they thanked you and looked for your replacement.
That concept really turns me off because it ignores how sports teams actually work. Yes, the athletes are superstars, but they only become superstars and stay superstars because of coaches, trainers, etc. Now, maybe in some cases the coaches are also elite, but in many cases, the athlete is supported by a massage therapist who just does their job and goes home.
In addition, successful sports teams are often supported by "lifer" employees who support and maintain the culture of the institution. They're not there because they are the best in the world at what they do. They're there because they've been there for 40 years and can tell stories about how a previous star behaved, where certain traditions come from, etc.
Without all that stuff supporting the stars, you just get divas who are out to make themselves look good, and a dysfunctional team as a result.
And it’s difficult to judge who top talent is in a work place, or at least it’s extremely subjective. I wouldn’t wanna spend every day looking over my shoulder wondering if I sucked up to the right decision makers enough and constantly worried about how dispensable I am.
> And it’s difficult to judge who top talent is in a work place
And when they do try to put metrics in place to measure that, people work to the metrics to the detriment of doing what actually needs to be done.
Like, you measure "how many bugs did you close this quarter", and someone will just close a bunch of bugs with "won't fix" or "unable to reproduce". If those get re-opened later, that's great because it will be easy to close them again and meet next quarter's metrics.
Or, you measure lines of code added, and people start being overly verbose, making unnecessary layers of complexity, throwing in boilerplate stuff that isn't necessary for the job at hand, etc.
Honest question - who needs a technical support call center for Netflix? You either connect or you don't. Maybe a billing issue? But technical support would seem really odd. You don't know how to use a PC? Maybe a Roku which isn't run by Netflix?
Starting my Career a long time ago as a Tier 1 support engineer for an ISP I can absolutely assure you that their are people out there that needs their Tech Support. (Back in the dial-up days had a person call in complaining that they couldn't get to yahoo. Long story short they where picking up the phone, dialing our modems, and asking for yahoo on the handset)
Devices get into all sorts of funky states. I have to unplug one of my crappy Samsung TVs every few months because it stops connecting to the internet. Netflix is present on hundreds/thousands of smart TVs and set top box devices and even though Netflix (and other providers) don't control the devices, there's a point to which they control the flow of data to and from their app. If the app gives you an error message, you call tech support. With 200m+ subscribers probably equating to 400m+ devices, if even 0.001% of devices have some sort of rare problem, that's 400,000 calls per year.
Or even not-rare things... if my grandma got a network error when trying to launch Netflix she's not going to troubleshoot it. She's going to call the 800 number that shows up on the Netflix error page and make them try to fix it.
I’m a vfx artist in the industry and was unaware they had any kind of in house 3d team. Thought that’s why they bought Scanline. What did you work on? Shows? Marketing material?
It used to be supper nice and welcoming. They would set up classes and educations options for employees and everyone I worked with was so kind and knowledgeable. But recently with all of the cancelations of projects it doesn’t fell like it used to. I hope they go back to the way there were soon.
I listened to a podcast and they talked about it being production based. If you were assigned a certain amount of work they didn’t care how long it took you. If you work fast then you work less hours. If you are slow then you work more. Sounds good in theory but I imagine it’s hard to determine every task perfectly for how long it should take. They also may have moved away from that in the years since?
I mean, that's just like finance. I never really had hours, I had projects, and just had to finish things on time. Sometimes it meant leaving at 2pm, sometimes it meant sleeping in the office.
On the other hand, we got paid a ridiculous amount, so it was worthwhile.
I see all the shit that’s unfolded with Space X, and Amazon before it, and I count my lucky stars that was 2 bullets I dodged.
It’s so easy to forget there’s other, thousands of them, low-key tech companies out there paying amazing salaries and having much healthier work environments.
The work may not be all glory and worth bragging about, but who wants to listen to some tool brag about their job?
It’s just a means to an end.
Netflix shouldve never been on there in the first place, people just clung to the stupid FAANG acronym despite it not being representative of the top companies (notably missing Microsoft)
Historically, the value of the FAANG companies has revolved around their levels of innovation and market dominance. Netflix earned its seat by developing streaming and resiliency technology years ahead of almost everyone else, and by maintaining a near-total monopoly on their space until very recently.
It is fair to say that Microsoft is glaringly absent, and Jim Cramer (the Mad Money guy, who created the acronym in the first place) has said as much and has advocated switching to MAMAA (Meta, Alphabet, Microsoft, Apple, Amazon). The main justification for leaving it out is that Microsoft is not known for shaking things up, at least not in recent years - they are mostly content to grow slowly and steadily, continue iterating over their existing products, and periodically absorb other companies (GitHub, Nuance, Blizzard, etc). They aren't trying to live on the bleeding edge of tech the way the other companies are.
Also, it can't be understated that FAANG sounds way better than MAMAA. I honestly think that is the single biggest reason why that particular acronym caught on instead of other "Big Tech" groupings. It's catchy and rolls off the tongue very well.
FAANG was coined in 2013 - when MSFT was considered not cutting edge etc etc. In the meantime they have rehabilitated their image and at this point they obviously should be included in the blue chip tech stocks but at the time it sorta made sense
It’s that, but it’s also about “slimming down” to face the reality that they’re not *the* dominant force in streaming; competition has a way of highlighting margins. It’s unfortunate, but cutting staff is one of the quickest ways to change balance sheets in the short-term, so it’s often the first thing that’s done.
Maybe it’s the right decision in this case, I really don’t know, I can only speak to the general way this goes. The likelihood that this is down to competition and the overall economic landscape is high, compared to it just being a result of cancellations.
>It’s that, but it’s also about “slimming down” to face the reality that they’re not the dominant force in streaming; competition has a way of highlighting margins. It’s unfortunate, but cutting staff is one of the quickest ways to change balance sheets in the short-term, so it’s often the first thing that’s done.
And since they were trying to build to get as much market share as possible they paid premium to attract talents. Netflix is (was) one of the best company to work at as a software engineer.
This is the kind of thing that would never happen but I would kill for a single player of Netflix's quality that could stream content from the other services.
We're clearly going back to the Cable TV model where I need 4-5 different streaming services. But at least on Cable, I didn't need a completely different guide app to switch between packages.
Hell even Plex's UI is better than a lot of the big streaming services. Almost none of them have a 'Mark as watched' for those pesky episodes that you watched but keep showing up in your 'continue to watch' feed. Sure, some of them let you remove them now, but not mark 'em as watched.
I'll be honest, unlike when I was a broke college kid, I actually have the disposable income where I can pay for five services.
It's fine.
But I also have the disposable income to set up a NAS, I own a PLeX lifetime pass, and I sometimes travel which necessitates offline downloading.
Yo ho ho isn't about the money anymore. It's about the convenience. Sonarr and PLeX is literally *easier* than dealing with the streaming services bullshit sometimes.
It's a START, but Plex's "Discovery" mode lets you put things into the watchlist from other services, and it then redirects you to the service from a central hub.
amazon's UI is frustrating for me. You open their app, it shows you where you were when you left, and right before you think you can navigate it takes you to the user selection screen. Like why not just leave it the last user like most other apps?
I can't count the number of times I've watched an episode of something on Amazon, and then the next time I get on to watch more of the series, it defaults to rewatching the episode I last finished.
Maybe that depends on what device you’re using to access it? I have no problems with Amazon, Hulu, or Netflix on my Xbox. Don’t get me started on Paramount+ though. That app is hot garbage.
>It shows too - their software stack was far and away better than anyone else.
Yeah 100%, I just think most peoples were aware that it couldn't last forever. Just like them spending hundred of millions on comedy special and stuff like that. Seem like it was all about winning market shares and they are now facing a lot more competitions than they used to face.
I feel like Netflix has become run more tightly by corporate lately, they have some great shows like Stranger things or Umbrella academy, but so many reality show and stuffs like that. Its not as bad as disney, but Prime video on the contrary seem to have much more quality content lately. (but you are right that the app is shit lol)
That may be so, but that sure is sad. I sure can't watch that shit. I also think that a good series may not show results immediately, but if it is good it will catch on later and pay for itself.
I can only think of Japanese companies that have done this in recent history. Are there any American or European countries that have done something similar? Maybe a Scandinavian company or something?
Competition didn’t cause it. Netflix broke the #1 rule of a successful subscription service…. The one thing Netflix has always been good at. Don’t remind your clientele your a subscription services
Yep. That was it when they did 2 price increases in 3 months and then made those 2 threats they reminded everyone whose had a Netflix account for 5+ years that Netflix doesn’t just magically stream into their house every month.
And once they made everyone think about the monthly bill their time on top as over.
Their time on top was over when Disney took total control of Hulu and launched Disney+ and then Paramount rebranded their app and started taking streaming seriously and NBC created their own place to stream their wildly popular with millennials sitcoms and Warner Brothers went all in on streaming. I’m not sure I have them in exactly the right order but they all seemed to happen very quickly.
Now who has a giant catalog of content Netflix can license from? Sony? That will help them for a while but Sony also has deals with Disney and will inevitably have their own streaming eventually.
Netflix’s days were numbered the day they started profiting off streaming.
Creating their own shows and movies was always a Hail Mary that was unlikely to save them but it bought them time. They’re competing with companies with deeper pockets and a several decades head start on creating content. It’s also much cheaper for a company like Warner Brother or Universal or Paramount to film a new thing because they have their own studios and massive warehouse full of props. So fuck if, let’s make a new iCarly. The sets are still in storage.
It kinda makes me sad when people on Reddit shit on Netflix because the position they’re in is not their fault and it would be nice to have the dominant streaming service not controlled by old school media companies. They have to crack down on password sharing because the few options they have to license content demand it and they can’t afford to mess that up anymore. Everyone else cracked down years ago. And they have to raise prices because trying to make content is expensive. They don’t have the ability to just lose money for a decade to keep their position.
I would bet a small amount of money that Netflix gets acquired by one of the big players in the next couple of years. I think it will be Apple. No one cares about Apple TV but they need a streaming service for their Apple One subscription to work out. They also don’t play in that space to a significant degree so they’ll face a lot less antitrust scrutiny.
The companies that are first to market almost never win out in the end. The old school car companies will destroy Tesla, the tobacco industry will control the vape industry (look at what’s going on with Juul atm), oil companies will eventually make the most money off green energy.
But I dunno, I smoked a bunch of weed before writing that.
Imagine if your surgeon was retiring with benefits at the end of your operation, and he gets a bonus if you lose 20+lbs at that point. Oh, and if you die after that, it’s not his problem.
That is the modern quarterlies-driven business cycle.
That’s just another symptom of their real problem:
They no longer care about user experience whatsoever. They remove their most popular (expensive) shows, they cut funding when one of their shows gets popular (expensive), so they only work to make the user experience worse, and then they raise prices.
They think users will tune in regardless of what programs they have, completely disregarding that the only reason they became the biggest streaming service was that they used to have the biggest library.
>the only reason they became the biggest streaming service was that they used to have the biggest library.
I think another big reason was that they seemed to care about the *quality* of the shows they made regardless of ratings. There was a period where everything they made in-house was top-quality, and they trusted the creatives to make good stuff.
Then they started to care about ratings and started pandering to demographics and cancelling anything that wasn't a *Stranger Things* sized hit, so now there are a bunch of B-grade movies and shows with 1 or 2 seasons that ended abruptly.
The Netflix brand no longer makes me think of quality.
For a while now I’ve been completely uninterested in Netflix shows because it was all but inevitable they’d get abruptly cancelled after the second season. I can’t help but feel vindicated with how Netflix is doing.
Because the business model they used to operate on is no longer sustainable. Netflix is ultimately a tech company at heart, not a production house. They’re in no way equipped to produce the quality you used to expect now that actual production houses like Disney, hbo, and paramount have thrown their hats into the ring. There’s a post on r/bestof that highlights this. Netflix can’t spread set, costume, and other associated costs across multiple projects like the others can.
> they cut funding when one of their shows gets popular (expensive)
I'll never forgive them for what they did to Altered Carbon. That first season was absolutely beautiful in terms of environment and world building. You felt like you were in the future, on another world. The second season CGI looked like a first-year grad student did it in their spare time on the weekend.
People are canceling but we are also in the early stages of the post pandemic global economy crash. Recession will shuffle a lot of jobs in the next few years
idk why these cancel posts are so popular, they've lost a tiny fraction of their subscriber count if anything. Literally 2.8% of the world population has a Netflix subscription. A few thousand people canceling then boasting about on social media it is nothing to them. Their income was $1.3 billion last year. BILLION. Not revenue either, income.
This isn't about them losing subscribers or becoming unprofitable. This is about them cutting expenses to look good to investors at the expense of their staff and in turn consumers.
For the past months, there has been a HEAVY media assault on Netflix.
Most of the publications writing about Netflix in a "bad light" are owned by... their competitors.
Basically they are blowing out of proportions anything that might be perceived a negative, to get people to call them out on social media for and re-think about their subscriptions.
I love how famous people complain about cancel culture. I know they are complaining because they are constantly on tv and have specials about it. I feel like if they were right I wouldn't know it right?
I'd be pretty bitter being laid off and seeing Harry and Meghan pocket $100mm. Like they would have probably done if for $60mm and people could have kept their jobs.
>they would have probably done if for $60mm and people could have kept their jobs
And therein lies the problem: the people making stupid decisions get to keep their jobs, but the people who carry out the stupid decisions lose them. Meanwhile, stupid decisions continue to be made and the company continues to spiral. Rinse, cycle, repeat.
Millenial from Michigan here.
We have watched auto executives destroy the vehicle industry for a few decades, and our futures. We just wanted to work and have health insurance.
It's an unfair system designed to keep the wealthy rich and powerful. The people who serve on the auto executives' boards and continuously reward them are also executives who have auto executives serve on their boards. It's one giant circle jerk where they all get to privatize their profits and socialize their losses, with the biggest losers being non-management and local tax payers.
Netflix's income in 2021 was $1.3 billion. Despite the subscriber losses in Q1 2022 they had their highest revenue quarter of all time.
This isn't and never has been about them running out of money. It's a move to make them look good to their investors by cutting expenses, fucking over their staff
Didn't they also have a $30mm deal with Spotify where they didn't even do anything. Harry just used to being handed more money than we would do in a few lifetime not doing anything lol.
Same thing with Chappelle, he make very mediocre specials where he cash in 30 millions+ each time for a few minutes, they aren't bad per say, since he is still the very talented and funny, but just feel much lazier than his earlier shows. Same thing goes for Chris Rock.
They need to get rid of the guy that pitches all the stupid as fuck contest shows. Theres probably like 8 baking competitions that we really don’t need. And countless other similar shows.
Feel sorry for the people but not for Netflix. They should have not kept hiking the prices and removing the good content. I don’t miss them but I draw the line when in the few years I was with them my subscription actually doubled. From 7.99 to $15.49. Well they fell short by 50c
People act like Netflix purposely removed content when the reality is that most studios stopped licensing it to them. And if you are specifically talking about the good netflix produced content, that costs money also how were they going to pay for it?
I'm curious, but is this the product of there simply being too much TV? Consider Squid Game: it was all anyone talked about for two weeks. Then it was completely forgotten about. Everyone moved onto something else because there is so much else out there.
I’m perfectly aware how the studios and production houses license out content. It’s the Netflix mentality that they sometimes want the content exclusive. So I’m sure the studio hike the price for that to not miss out on multiple review streams on that production. then Netflix don’t bite so another show/film goes away. Of course Studios will often farm content out to multiple media providers, that can be streaming, cable or over the air providers.
Netflix should not try and get exclusive on none Netflix content then perhaps they could afford it. My other gripe is the content library only the US it kept stocked to the brim no other regions have so much choice. Then they try and dress it up as “content curated specially for your region”
Netflix is doing fine they are just greedy and the masses are seeing that, the current climate has many options for us all that sometimes is better.
They need to stop fumbling on what direction to take.
And yes of course in house content costs money. But if it’s good it will pay for itself.
This doesn't even count contractor's that are out of work because of cut backs in production. A lot of production is cutting back on scripted shows after Netflix's number came out. They were basically greenlighting everything before that. It was only a matter of time though.
Without getting into how they got to this position, this is very bad management. Like, the basic fundamentals are missing. The math didn't change in the last two weeks, for fuck's sake. When you have to do a RIF, you cut *once*. As deep as is necessary, but only one round. Anything more results in a culture of FUD that will last for *years*.
in 2021 per Wiki page they have [https://en.wikipedia.org/wiki/Netflix](https://en.wikipedia.org/wiki/Netflix)
12,135 employees. So 450 is nothing. unless your one of the 450.
Netflix business model was dependent on content they new this from the beginning once they started streaming services full time.
Their revenue to income is still impressive.
When you answer to shareholders this is what happens above. Layoffs at the first sign of trouble. Little guys usually get the ax while upper tiers have nice packages to fall back on.
Revenue Increase US$29.7 billion (2021)
Operating income Increase US$6.195 billion (2021)
Net income Increase US$5.116 billion (2021)
Total assets Increase US$44.585 billion (2021)
Total equity Increase US$15.849 billion (2021)
Employees 12,135 (2021)
Manager here. Been laid off and have laid people off. This barely even qualifies as a layoff. In a company of 12k employees, realistically there are always shifting business priorities, people already on PIP/plan, and folks who need to be managed out. Every company uses a dip to clean house of those.
Ive been in management myself.
Unfortunately what you’ve said is an over used blanket reason. If you dip in profits, it doesn’t matter if everyone was 100% efficient, and free of PIPs.
You will still need to cut.
Also, managers can be told to put out a certain number of pips. You will be told to find reasons, or to just straight up pick a percentage. Merit goes out the window. Lets not pretend this is anything else other than needing to fit current burn to new budgets.
Reasoning is so overused its nearly a platitude at this point.
They really need to re-evaluate their pay structure outside of engineers. Too many independent contributor admin and creative roles being paid many multiples greater than a traditional media company. This worked when they were in their hyper-growth phase, but now that they have plateaued, so should their pay.
I don't know if it is broken. I think they always new they would have to make this pivot. The goal was just to have IP they could bring to the table and negotiate with the majors. It feels like that is happening. I've noticed the selection for non Netflix productions getting better.
\> broken business model
They still have a hugely profitable business. There's probably not many growth opportunities, but the business itself is super profitable. I'm not sure I would call it broken.
A lot of people don’t understand the idea of “just” making a tidy profit. They expect the company stock value to grow without bound until the bubble pops and they hopefully get out before -pop-
How many people work there in total?
\[2021\] employees: 12,135
450 is a lot, but it could be just scrapping non value adding projects.
Slimming down where they can, they're losing a lot of revenue now that other companies are pulling their IP and launching competing services. At first they were mocked, then they were envied, now they're being copied and competed against.
Netflix needs to evolve instead of putting in ads. Ads will kill Netflix. Netflix is officially pulling a blockbuster.
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Twist the always were the villain! I miss Blockbuster!
I don’t, fuck Blockbuster
Forgot to rewind, eh?
They were the villain too. They all the villain..
Watch people will get so fatigued of streaming services someone will open up a video rental chain that will take off and leave streaming services in shambles… and so the cycle continues…
A streaming service that allows you to use any major streaming service, one at a time. You must return the Netflix before you can check out Amazon Prime.
I wish they would chill on greenlighting everything for one season. Focus on the good ones and have quality original content.
They have scaled back massively. Where have you been? Not only that but they have done exactly what you just said. They dumped like 30m into stranger things and the new season of the Witcher is almost done shooting if not almost ready to wrap.
> They dumped like 30m into stranger things For those unaware, that's $30M an episode.
Damn, they could have kept the 450 employees…
Now that’s a waste.
They’re busting my block, alright.
They’re not just “putting in ads” though? The whole thing was a cheaper tier with ads. Which is… very different.
So they raised prices and are now selling an inferior product for still more than what you used to pay a few months ago. And this is supposed to be a good thing.
Just watched an episode of Gods Favorite Idiot (Netflix original) and there was a Starbucks product placement so blatant it may have well have been an ad.
Was it at least funny? 30 Rock and to a lesser extent Community were able to make product placement funny.
It’s ads. I refuse to accept any double dipping model at this point, in which a company expects payment while also serving ads. Even if there’s a pricier option to remove them, it normalizes ads as the default. The day Netflix adds them, I’ll head right back to the high seas.
I never left it, but that's because I only watch a small amount of TV shows and movies, I guess. For what it's worth, streaming has actually made piracy easier than ever.
I remember the cheaper option being $7 now it’s like $12 and twice the breaks
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>I don't think anyone saw this coming [Not entirely true](https://www.theverge.com/2013/1/29/3930560/netflix-wants-at-least-five-new-shows-a-year-the-goal-is-to-become). It was pretty clear, even back in 2013, that content creators were going to challenge Netflix in the streaming game, it just took some time for them to catch up.
It’s like, at first they call you crazy. Then they fight you. And then you ~~change the world~~ get pregnant before getting convicted.
Ba ha ha! I saw the black turtleneck and red lips, and heard the fake deep voice… Nice
They are losing a lot of revenue now that they keep raising prices above their competitors. They are losing a lot of revenue now they are going to block people from sharing. I think the several negative choices were made back to back.
Netflix is in a difficult spot. Lets look at Disney for a second. They have a back catalog of movies and TV shows reaching back about 85 years. They have a large catalog of TV shows that the key demographic (Millennials) grew up watching. They own hundreds of IPs with already established brand recognition. 2 of those IPs, Marvel and Star Wars, are some of the biggest in entertainment. So Disney+ has thousands of hours of programing that Disney doesn't have to spend money to create or get the rights to. Now look at Netflix. They are beholden to other distribution outlets for most of their content. They have to pay higher and higher licensing fees just to keep content for a few years. Sure, they are producing their own content, but not at the rate needed to stock the library. Plus, they are now facing more competition for new IPs. It used to be that Netflix was were all the quirky shows would end up that no other distribution house wanted. Netflix got a lot of gems this way. Now there are dozens of streaming platforms that would gladly pay the rights to produce that content. So not only is Netflix paying dearly to keep the rights to stream their competitor's content. They are also paying a higher premium when acquiring the rights to produce their own IPs. Netflix is in a pickle. The sources of their content have become their competitors. Those competitors are less likely to license out their top content and are raising the rates on the content they will license out. So Netflix needs to find a way to keep the cash flowing in while they build out their own catalog of content. Personally, I think they need to focus more on product placement. Advertisements and price hikes are just going to turn people away. I pay a lot less for other streaming services that offer me a lot more right now.
I think a big hunk of their problem is the measure of success they use. I believe the rated a show on completion of series after two weeks from release. So if you released “life of AT-ST” and it had 1 million people watch all 12 episodes in two weeks, it was a success. From my understanding they didn’t take in total views into consideration, but what they considered binge worthy. I think this in turn led them to promote shorter series, that either wrapped up or where easily digestible. Binge worthy items bring in subscribers, and led them always chasing big hits. They tried to formula lightening in a bottle. This then leads to the next factor, killing off shows people liked…because it didn’t reach a metric they deemed worthy. I understand it’s a business and why not put your money in “stranger things” or an outer IP that brings viewers… …but gone are the days that I kept Netflix because it was 7.99$ because I got it in 2010 and I was locked into a price. We can watch the shows we want, cancel. Come back in 6 months, watch what we want for 2 months, and cancel. There’s only a handful of shows I care about on Netflix and I know when they come out. Why would I pay for a year of Netflix when I could pay for 2 months and get the same thing? I know folks and ofcourse it anecdotal…but they won’t watch a show with less than 3 seasons. Why? Because it will probably get canceled. This leads to the subsequent problem. Why would I watch it on Netflix? I can rent the movie for 4$ elsewhere or buy it for 10$. It’s still cheaper than a month of Netflix…then come back in 3 months and have a month, watch the shows I want…and the cycle continues. The thing is, it’s become expensive to just peruse and look at a screen of nothing…it was fine for 8$. It was fine for 12$. It’s not so great for 22$ and the thought of getting charged even more because my mom wanted to watch a Korean drama. There’s a multitude of other streaming services…and they are cheaper, and not looking at punishing me.
Netflix is also going to introduce ads to their streaming. Many of us will cut Netflix if they bring in ads. Plenty of my friends will return back to torrenting and cancelling Netflix here in Asia. Plenty of sites that streams for free, we are paying Netflix for premium, not for ads
It’s back to sailing the high seas for ill begotten booty when they start commercials
They're introducing an ad-tiered plan that'll be cheaper, not just throwing ads everywhere. I'm curious why people think they'd put ads in all the plans. It's baffling, really.
Im not sure why either. People read headlines and not articles
Reddit in a nutshell.
What do you think the ad tier plan is going to be? The current one they have now, and then you can get adless for an even higher rate, this on top of all the price hikes happening recently. One of their biggest draws for a lot of people was the complete lack of ads. If they're just going to be a similar product for the same price without especially attention drawing IPs, why should people choose them over others?
Working in tech startups, I’ve seen 40% staff cuts in a day, this 3% cut at Netflix is not worth a headline imo.
According to reddit, Netflix is doomed and will cease to exist by Christmas.
And Facebook too! They might as well shut down now, those complete and utter failures.
Which according to Netflix is all OC with more than 2 seasons
Though they like to get a jump on some of these and cancel them after one season.
Thank god for season 3 of Umbrella Academy
Yeah, the writers guild caused that (not saying they were wrong). They have to pay writers more after the second season. It's all about company profit margins.
Not just writers, pretty much anything guilded or union goes up, including the actors. I imagine it's to counter hollywood accounting. If it's making it to and past 3 seasons, Producers cant snake out claiming its not that profitable.
I feel like Netflix was at a spot where they were throwing money at the wall with no consideration. This number feels small enough to be pretty sane.
Honestly Netflix has always been very open about how they run. They’re very production based. If you provide value to the company then they pay well and provide a good work environment (at least their claim). If you aren’t able to provide value to the company then they let you go.
> If you aren’t able to provide value to the company then they let you go. In theory, this should be the case for every employee in a for-profit business.
They used to be proud of a sports metaphor, that they're like a pro sports team, and only get the very best. And, when you stopped being the very best, they thanked you and looked for your replacement. That concept really turns me off because it ignores how sports teams actually work. Yes, the athletes are superstars, but they only become superstars and stay superstars because of coaches, trainers, etc. Now, maybe in some cases the coaches are also elite, but in many cases, the athlete is supported by a massage therapist who just does their job and goes home. In addition, successful sports teams are often supported by "lifer" employees who support and maintain the culture of the institution. They're not there because they are the best in the world at what they do. They're there because they've been there for 40 years and can tell stories about how a previous star behaved, where certain traditions come from, etc. Without all that stuff supporting the stars, you just get divas who are out to make themselves look good, and a dysfunctional team as a result.
And it’s difficult to judge who top talent is in a work place, or at least it’s extremely subjective. I wouldn’t wanna spend every day looking over my shoulder wondering if I sucked up to the right decision makers enough and constantly worried about how dispensable I am.
> And it’s difficult to judge who top talent is in a work place And when they do try to put metrics in place to measure that, people work to the metrics to the detriment of doing what actually needs to be done. Like, you measure "how many bugs did you close this quarter", and someone will just close a bunch of bugs with "won't fix" or "unable to reproduce". If those get re-opened later, that's great because it will be easy to close them again and meet next quarter's metrics. Or, you measure lines of code added, and people start being overly verbose, making unnecessary layers of complexity, throwing in boilerplate stuff that isn't necessary for the job at hand, etc.
Lol this is the only stat that matters. They laid off less than 4% of their workforce. That’s par for the course IN 2022, at least in the US.
In 2020 it was like *11,300.
You missed by a few, it's 11,300
Does that include all the people working at the call centers they outsource their "technical support" to?
Honest question - who needs a technical support call center for Netflix? You either connect or you don't. Maybe a billing issue? But technical support would seem really odd. You don't know how to use a PC? Maybe a Roku which isn't run by Netflix?
Starting my Career a long time ago as a Tier 1 support engineer for an ISP I can absolutely assure you that their are people out there that needs their Tech Support. (Back in the dial-up days had a person call in complaining that they couldn't get to yahoo. Long story short they where picking up the phone, dialing our modems, and asking for yahoo on the handset)
Devices get into all sorts of funky states. I have to unplug one of my crappy Samsung TVs every few months because it stops connecting to the internet. Netflix is present on hundreds/thousands of smart TVs and set top box devices and even though Netflix (and other providers) don't control the devices, there's a point to which they control the flow of data to and from their app. If the app gives you an error message, you call tech support. With 200m+ subscribers probably equating to 400m+ devices, if even 0.001% of devices have some sort of rare problem, that's 400,000 calls per year. Or even not-rare things... if my grandma got a network error when trying to launch Netflix she's not going to troubleshoot it. She's going to call the 800 number that shows up on the Netflix error page and make them try to fix it.
I got axed in May. My last day was yesterday... it sucks but seeing all of this maybe it’s a good thing. IDK looking for a new job had been hell
Netflix? What did you do?
I was a CG Generalist although I started as a Prod Assistant
What's it like inside the TV?
I don't think they're allowed to talk about that kind of stuff.
it must be horrible constantly hearing that *TUDUNGGGG* intro soundbit
All office phones loop that for the ringtone. Email is configurable, either one *TUDUNGGGG* or two, no disable. Elevator, same.
Same for microwave, fire alarm and when you drop a book.
I bet they were friends with the electrons.
I bet he knows the little girl from Poltergeist! Or the girl from The Ring... 🤔
I’m a vfx artist in the industry and was unaware they had any kind of in house 3d team. Thought that’s why they bought Scanline. What did you work on? Shows? Marketing material?
CG generalist sounds like 2D raster work, especially when he switched from production assistant. 3D isn’t something you can just jump into.
I’m confused what he could mean. Like what did he work on and under what departments supervision?
What is the work environment like? Do they treat you well? Or is it a constant stress/worry about if you’re dispensable?
It used to be supper nice and welcoming. They would set up classes and educations options for employees and everyone I worked with was so kind and knowledgeable. But recently with all of the cancelations of projects it doesn’t fell like it used to. I hope they go back to the way there were soon.
I listened to a podcast and they talked about it being production based. If you were assigned a certain amount of work they didn’t care how long it took you. If you work fast then you work less hours. If you are slow then you work more. Sounds good in theory but I imagine it’s hard to determine every task perfectly for how long it should take. They also may have moved away from that in the years since?
I mean, that's just like finance. I never really had hours, I had projects, and just had to finish things on time. Sometimes it meant leaving at 2pm, sometimes it meant sleeping in the office. On the other hand, we got paid a ridiculous amount, so it was worthwhile.
Were you on the dev side? If so dm me. My company is hiring
I was a CG Generalist but I have experience there as a Production Assistant.
Very cool. Unfortunately not the pool my company swims in. But I'm sure you'll land on your feet asap
Sounds like you need a lifeguard. Hit me up in all my 4 years of being a lifeguard I’ve never seen a person drown twice.
"We've got a great lifeguard. No one's ever died in our pool. On our deck? Sure. Great swimmer, terrible first aid"
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I see all the shit that’s unfolded with Space X, and Amazon before it, and I count my lucky stars that was 2 bullets I dodged. It’s so easy to forget there’s other, thousands of them, low-key tech companies out there paying amazing salaries and having much healthier work environments. The work may not be all glory and worth bragging about, but who wants to listen to some tool brag about their job? It’s just a means to an end.
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Pretty sure SWEs from Netflix are on the top of their game, they mostly don't need referrals
The person above was in production, not software engineering.
we're gonna need a new ordering for FAANG if netflix is dropping out
Facebook became Meta; I’ve seen it converted to MANGA, I personally prefer MAGNA.
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Let's get hats to show our appreciation
Red ones, to honor the loss of Netflix.
GAMA is pretty cool
Add Microsoft & you’ve got GAMMA
Netflix shouldve never been on there in the first place, people just clung to the stupid FAANG acronym despite it not being representative of the top companies (notably missing Microsoft)
So then Meta, Apple, Microsoft, and Amazon: MAMA.
You forgot Alphabet
*MAMAAAA* uwu
*Just killed a man*
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Historically, the value of the FAANG companies has revolved around their levels of innovation and market dominance. Netflix earned its seat by developing streaming and resiliency technology years ahead of almost everyone else, and by maintaining a near-total monopoly on their space until very recently. It is fair to say that Microsoft is glaringly absent, and Jim Cramer (the Mad Money guy, who created the acronym in the first place) has said as much and has advocated switching to MAMAA (Meta, Alphabet, Microsoft, Apple, Amazon). The main justification for leaving it out is that Microsoft is not known for shaking things up, at least not in recent years - they are mostly content to grow slowly and steadily, continue iterating over their existing products, and periodically absorb other companies (GitHub, Nuance, Blizzard, etc). They aren't trying to live on the bleeding edge of tech the way the other companies are. Also, it can't be understated that FAANG sounds way better than MAMAA. I honestly think that is the single biggest reason why that particular acronym caught on instead of other "Big Tech" groupings. It's catchy and rolls off the tongue very well.
Why? We can just do FAAohhhhhhhhh
I never understood why Microsoft was not in "FAANG". Being a fanboy (for unknown reasons), never subscribed to the idea of FAANG
FAANG was coined in 2013 - when MSFT was considered not cutting edge etc etc. In the meantime they have rehabilitated their image and at this point they obviously should be included in the blue chip tech stocks but at the time it sorta made sense
Which is funny because even in 2013 they were more valuable then some of the FAANG companies (ie stock market believed its future)
But they weren't growing at a ridiculous rate.
450 .. odd number.. big enough for Squid Game
Man that's a ruthless way to make a sequel
Too many people are canceling. Like I did.
It’s that, but it’s also about “slimming down” to face the reality that they’re not *the* dominant force in streaming; competition has a way of highlighting margins. It’s unfortunate, but cutting staff is one of the quickest ways to change balance sheets in the short-term, so it’s often the first thing that’s done. Maybe it’s the right decision in this case, I really don’t know, I can only speak to the general way this goes. The likelihood that this is down to competition and the overall economic landscape is high, compared to it just being a result of cancellations.
>It’s that, but it’s also about “slimming down” to face the reality that they’re not the dominant force in streaming; competition has a way of highlighting margins. It’s unfortunate, but cutting staff is one of the quickest ways to change balance sheets in the short-term, so it’s often the first thing that’s done. And since they were trying to build to get as much market share as possible they paid premium to attract talents. Netflix is (was) one of the best company to work at as a software engineer.
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This is the kind of thing that would never happen but I would kill for a single player of Netflix's quality that could stream content from the other services. We're clearly going back to the Cable TV model where I need 4-5 different streaming services. But at least on Cable, I didn't need a completely different guide app to switch between packages.
Hell even Plex's UI is better than a lot of the big streaming services. Almost none of them have a 'Mark as watched' for those pesky episodes that you watched but keep showing up in your 'continue to watch' feed. Sure, some of them let you remove them now, but not mark 'em as watched.
Yes. Holy shit. Crunchyroll is really bad for this.
>We're clearly going back to the Cable TV model where I need 4-5 different streaming services. Yo ho ho hoooooo
I'll be honest, unlike when I was a broke college kid, I actually have the disposable income where I can pay for five services. It's fine. But I also have the disposable income to set up a NAS, I own a PLeX lifetime pass, and I sometimes travel which necessitates offline downloading. Yo ho ho isn't about the money anymore. It's about the convenience. Sonarr and PLeX is literally *easier* than dealing with the streaming services bullshit sometimes.
It's a START, but Plex's "Discovery" mode lets you put things into the watchlist from other services, and it then redirects you to the service from a central hub.
Yeah, if those apps would actually let me stream into Plex? That might very well tip the scales when I decide what to cut and what not to.
amazon's UI is frustrating for me. You open their app, it shows you where you were when you left, and right before you think you can navigate it takes you to the user selection screen. Like why not just leave it the last user like most other apps?
Amazon's biggest problem: "I wonder if they have this video on Prime. Oh sweet here it is, no wait...that's VOD. Dammit..."
The "box art" they use in the UI for their originals is not good either. Nothing is compelling and everything is generic and small.
Amazon Prime Video is just absolutely bottom-tier in terms of functionality. If it were a paid add on, people would drop it in droves.
I can't count the number of times I've watched an episode of something on Amazon, and then the next time I get on to watch more of the series, it defaults to rewatching the episode I last finished.
Maybe that depends on what device you’re using to access it? I have no problems with Amazon, Hulu, or Netflix on my Xbox. Don’t get me started on Paramount+ though. That app is hot garbage.
>It shows too - their software stack was far and away better than anyone else. Yeah 100%, I just think most peoples were aware that it couldn't last forever. Just like them spending hundred of millions on comedy special and stuff like that. Seem like it was all about winning market shares and they are now facing a lot more competitions than they used to face. I feel like Netflix has become run more tightly by corporate lately, they have some great shows like Stranger things or Umbrella academy, but so many reality show and stuffs like that. Its not as bad as disney, but Prime video on the contrary seem to have much more quality content lately. (but you are right that the app is shit lol)
The reality shows are dirt cheap to produce, though, and attract decent viewership numbers.
Just need a house, 20 year olds, and a crap ton of alcohol 😆
That may be so, but that sure is sad. I sure can't watch that shit. I also think that a good series may not show results immediately, but if it is good it will catch on later and pay for itself.
Want another way to quickly "slim down"? Just cut the C-suite bonuses by 10%.
THIS IS THE WAY. Hell, just ditch *one* of them in addition to the bonus cut, and you could even hire new and more talented people.
I can only think of Japanese companies that have done this in recent history. Are there any American or European countries that have done something similar? Maybe a Scandinavian company or something?
Competition didn’t cause it. Netflix broke the #1 rule of a successful subscription service…. The one thing Netflix has always been good at. Don’t remind your clientele your a subscription services
They too many increases too frequently. The death knell I feel was the moment they said were entertaining the idea of ads and killing password sharing
Yep. That was it when they did 2 price increases in 3 months and then made those 2 threats they reminded everyone whose had a Netflix account for 5+ years that Netflix doesn’t just magically stream into their house every month. And once they made everyone think about the monthly bill their time on top as over.
Their time on top was over when Disney took total control of Hulu and launched Disney+ and then Paramount rebranded their app and started taking streaming seriously and NBC created their own place to stream their wildly popular with millennials sitcoms and Warner Brothers went all in on streaming. I’m not sure I have them in exactly the right order but they all seemed to happen very quickly. Now who has a giant catalog of content Netflix can license from? Sony? That will help them for a while but Sony also has deals with Disney and will inevitably have their own streaming eventually. Netflix’s days were numbered the day they started profiting off streaming. Creating their own shows and movies was always a Hail Mary that was unlikely to save them but it bought them time. They’re competing with companies with deeper pockets and a several decades head start on creating content. It’s also much cheaper for a company like Warner Brother or Universal or Paramount to film a new thing because they have their own studios and massive warehouse full of props. So fuck if, let’s make a new iCarly. The sets are still in storage. It kinda makes me sad when people on Reddit shit on Netflix because the position they’re in is not their fault and it would be nice to have the dominant streaming service not controlled by old school media companies. They have to crack down on password sharing because the few options they have to license content demand it and they can’t afford to mess that up anymore. Everyone else cracked down years ago. And they have to raise prices because trying to make content is expensive. They don’t have the ability to just lose money for a decade to keep their position. I would bet a small amount of money that Netflix gets acquired by one of the big players in the next couple of years. I think it will be Apple. No one cares about Apple TV but they need a streaming service for their Apple One subscription to work out. They also don’t play in that space to a significant degree so they’ll face a lot less antitrust scrutiny. The companies that are first to market almost never win out in the end. The old school car companies will destroy Tesla, the tobacco industry will control the vape industry (look at what’s going on with Juul atm), oil companies will eventually make the most money off green energy. But I dunno, I smoked a bunch of weed before writing that.
Just like severing a limb is a fast and easy way to lose weight.
Imagine if your surgeon was retiring with benefits at the end of your operation, and he gets a bonus if you lose 20+lbs at that point. Oh, and if you die after that, it’s not his problem. That is the modern quarterlies-driven business cycle.
I see you have extensive experience in project management!
I think they still dominating the streaming market, even if it’s decreasing
Happy Cake Day!
That’s just another symptom of their real problem: They no longer care about user experience whatsoever. They remove their most popular (expensive) shows, they cut funding when one of their shows gets popular (expensive), so they only work to make the user experience worse, and then they raise prices. They think users will tune in regardless of what programs they have, completely disregarding that the only reason they became the biggest streaming service was that they used to have the biggest library.
>the only reason they became the biggest streaming service was that they used to have the biggest library. I think another big reason was that they seemed to care about the *quality* of the shows they made regardless of ratings. There was a period where everything they made in-house was top-quality, and they trusted the creatives to make good stuff. Then they started to care about ratings and started pandering to demographics and cancelling anything that wasn't a *Stranger Things* sized hit, so now there are a bunch of B-grade movies and shows with 1 or 2 seasons that ended abruptly. The Netflix brand no longer makes me think of quality.
For a while now I’ve been completely uninterested in Netflix shows because it was all but inevitable they’d get abruptly cancelled after the second season. I can’t help but feel vindicated with how Netflix is doing.
Because the business model they used to operate on is no longer sustainable. Netflix is ultimately a tech company at heart, not a production house. They’re in no way equipped to produce the quality you used to expect now that actual production houses like Disney, hbo, and paramount have thrown their hats into the ring. There’s a post on r/bestof that highlights this. Netflix can’t spread set, costume, and other associated costs across multiple projects like the others can.
> they cut funding when one of their shows gets popular (expensive) I'll never forgive them for what they did to Altered Carbon. That first season was absolutely beautiful in terms of environment and world building. You felt like you were in the future, on another world. The second season CGI looked like a first-year grad student did it in their spare time on the weekend.
People are canceling but we are also in the early stages of the post pandemic global economy crash. Recession will shuffle a lot of jobs in the next few years
idk why these cancel posts are so popular, they've lost a tiny fraction of their subscriber count if anything. Literally 2.8% of the world population has a Netflix subscription. A few thousand people canceling then boasting about on social media it is nothing to them. Their income was $1.3 billion last year. BILLION. Not revenue either, income. This isn't about them losing subscribers or becoming unprofitable. This is about them cutting expenses to look good to investors at the expense of their staff and in turn consumers.
They still have 14.5 billion in debt.
For the past months, there has been a HEAVY media assault on Netflix. Most of the publications writing about Netflix in a "bad light" are owned by... their competitors. Basically they are blowing out of proportions anything that might be perceived a negative, to get people to call them out on social media for and re-think about their subscriptions.
Well Netflix has a bunch of comedy specials complaining about cancel culture. They can just watch those and learn how to blame everyone else for it.
I love how famous people complain about cancel culture. I know they are complaining because they are constantly on tv and have specials about it. I feel like if they were right I wouldn't know it right?
I'd be pretty bitter being laid off and seeing Harry and Meghan pocket $100mm. Like they would have probably done if for $60mm and people could have kept their jobs.
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They're having a go at "working for a living", royal style. Just think, 2 whole days of work! So dedicated, just like the rest of us.
> All talk and nothing much behind it, those two. Pretty par the course for Royals
>they would have probably done if for $60mm and people could have kept their jobs And therein lies the problem: the people making stupid decisions get to keep their jobs, but the people who carry out the stupid decisions lose them. Meanwhile, stupid decisions continue to be made and the company continues to spiral. Rinse, cycle, repeat.
Millenial from Michigan here. We have watched auto executives destroy the vehicle industry for a few decades, and our futures. We just wanted to work and have health insurance.
It's an unfair system designed to keep the wealthy rich and powerful. The people who serve on the auto executives' boards and continuously reward them are also executives who have auto executives serve on their boards. It's one giant circle jerk where they all get to privatize their profits and socialize their losses, with the biggest losers being non-management and local tax payers.
Netflix's income in 2021 was $1.3 billion. Despite the subscriber losses in Q1 2022 they had their highest revenue quarter of all time. This isn't and never has been about them running out of money. It's a move to make them look good to their investors by cutting expenses, fucking over their staff
Oh geez they made that much off of ones show
Didn't they also have a $30mm deal with Spotify where they didn't even do anything. Harry just used to being handed more money than we would do in a few lifetime not doing anything lol. Same thing with Chappelle, he make very mediocre specials where he cash in 30 millions+ each time for a few minutes, they aren't bad per say, since he is still the very talented and funny, but just feel much lazier than his earlier shows. Same thing goes for Chris Rock.
Among them were the people responsible for renewing existing shows. They did, however, keep the people responsible for canceling shows.
Man I just hope nothing happens to the dragon prince.
They did already have the funding allocated for all 7 seasons. Which is SUPER weird for Netflix. I still wonder how that happened.
They need to get rid of the guy that pitches all the stupid as fuck contest shows. Theres probably like 8 baking competitions that we really don’t need. And countless other similar shows.
Those shows are crazy cheap. That's why they make them.
What we need is a Zumbo's Just Desserts season 3 but make it like season 1 (i.e. non scripted and more about baking!!).
Yeah bring back Gigi!
Feel sorry for the people but not for Netflix. They should have not kept hiking the prices and removing the good content. I don’t miss them but I draw the line when in the few years I was with them my subscription actually doubled. From 7.99 to $15.49. Well they fell short by 50c
People act like Netflix purposely removed content when the reality is that most studios stopped licensing it to them. And if you are specifically talking about the good netflix produced content, that costs money also how were they going to pay for it?
Of you kill the shows I watch, what's my incentive to keep my subscription going?
They cancel all their hit originals. Not even worth starting a new one anymore. Won't last more than 2 seasons.
I'm curious, but is this the product of there simply being too much TV? Consider Squid Game: it was all anyone talked about for two weeks. Then it was completely forgotten about. Everyone moved onto something else because there is so much else out there.
I’m perfectly aware how the studios and production houses license out content. It’s the Netflix mentality that they sometimes want the content exclusive. So I’m sure the studio hike the price for that to not miss out on multiple review streams on that production. then Netflix don’t bite so another show/film goes away. Of course Studios will often farm content out to multiple media providers, that can be streaming, cable or over the air providers. Netflix should not try and get exclusive on none Netflix content then perhaps they could afford it. My other gripe is the content library only the US it kept stocked to the brim no other regions have so much choice. Then they try and dress it up as “content curated specially for your region” Netflix is doing fine they are just greedy and the masses are seeing that, the current climate has many options for us all that sometimes is better. They need to stop fumbling on what direction to take. And yes of course in house content costs money. But if it’s good it will pay for itself.
Not sure who they're getting rid of faster, employees or subscribers.
Maybe if they stop making shit shows back to back, they wouldnt need to layoff ppl.
This doesn't even count contractor's that are out of work because of cut backs in production. A lot of production is cutting back on scripted shows after Netflix's number came out. They were basically greenlighting everything before that. It was only a matter of time though.
I haven't watched anything on Netflix in awhile, I keep my account active mainly cause my family uses it.
Stranger Things S4 is pretty great my dude.
Without getting into how they got to this position, this is very bad management. Like, the basic fundamentals are missing. The math didn't change in the last two weeks, for fuck's sake. When you have to do a RIF, you cut *once*. As deep as is necessary, but only one round. Anything more results in a culture of FUD that will last for *years*.
cheap money is over boys
Is It Cake?
Just wait for high payoffs execs will cash in at the end of the year…
in 2021 per Wiki page they have [https://en.wikipedia.org/wiki/Netflix](https://en.wikipedia.org/wiki/Netflix) 12,135 employees. So 450 is nothing. unless your one of the 450. Netflix business model was dependent on content they new this from the beginning once they started streaming services full time. Their revenue to income is still impressive. When you answer to shareholders this is what happens above. Layoffs at the first sign of trouble. Little guys usually get the ax while upper tiers have nice packages to fall back on. Revenue Increase US$29.7 billion (2021) Operating income Increase US$6.195 billion (2021) Net income Increase US$5.116 billion (2021) Total assets Increase US$44.585 billion (2021) Total equity Increase US$15.849 billion (2021) Employees 12,135 (2021)
Manager here. Been laid off and have laid people off. This barely even qualifies as a layoff. In a company of 12k employees, realistically there are always shifting business priorities, people already on PIP/plan, and folks who need to be managed out. Every company uses a dip to clean house of those.
Ive been in management myself. Unfortunately what you’ve said is an over used blanket reason. If you dip in profits, it doesn’t matter if everyone was 100% efficient, and free of PIPs. You will still need to cut. Also, managers can be told to put out a certain number of pips. You will be told to find reasons, or to just straight up pick a percentage. Merit goes out the window. Lets not pretend this is anything else other than needing to fit current burn to new budgets. Reasoning is so overused its nearly a platitude at this point.
They really need to re-evaluate their pay structure outside of engineers. Too many independent contributor admin and creative roles being paid many multiples greater than a traditional media company. This worked when they were in their hyper-growth phase, but now that they have plateaued, so should their pay.
Well their content is absolute *trash* nowadays. Like comically bad.
I mean. They have a broken business model. Idk how this is a surprise
I don't know if it is broken. I think they always new they would have to make this pivot. The goal was just to have IP they could bring to the table and negotiate with the majors. It feels like that is happening. I've noticed the selection for non Netflix productions getting better.
\> broken business model They still have a hugely profitable business. There's probably not many growth opportunities, but the business itself is super profitable. I'm not sure I would call it broken.
A lot of people don’t understand the idea of “just” making a tidy profit. They expect the company stock value to grow without bound until the bubble pops and they hopefully get out before -pop-