The Wall Street Journal reported on Friday that Netflix plans to cut spending by $300 million (276 million euros) in 2023, largely because the company has had to delay its initiative to limit password and account sharing, which was expected to generate new revenue.
- Citing the Wall Street Journal, The Wall Street Journal reports that Netflix originally planned to limit password sharing — which should lead to more sign-ups — in the first quarter of this year, but now plans to roll it out in the second quarter. , which delays the expected revenue from this procedure. People are aware of the issue.
- It’s not clear exactly where Netflix plans to cut spending, and the company didn’t immediately respond to Forbes’ request for comment, but a year ago it was considering reducing its real estate footprint and changing its subscription costs.
- According to a Wall Street Journal report, company executives stressed prudent spending in an internal meeting this month, but said there would be no freezes or layoffs, despite numerous job cuts in the technology sector.
- The streaming giant first announced plans to limit password sharing in April 2022, saying it had tested various ways to monetize account sharing and recover lost revenue, but the changes were delayed. in February and has not yet been implemented because the company is still determining the best approach for this campaign, according to the Wall Street Journal.
The spending cut represents a small percentage of Netflix’s total operating expenses, which were $26 billion (€24 billion) last year, but it comes at a difficult time for the streaming industry. After news of the password ban campaign, Netflix said last summer it had lost nearly a million subscribers — its first subscriber loss in a decade — though it reversed those declines in the second half of 2022. The sheer number of different streaming services has led to Many expected. The consolidation of the industry, which has already begun with the merger of HBO Max and Disney + to become the super-service Max this month. Netflix is experimenting with different subscription options, including a cheaper ad-supported service that will launch in late 2022.
As it plans to implement its password sharing restrictions in the coming months, Netflix said it will begin blocking devices in the US that try to access a Netflix account without paying properly. Netflix also trialed the paid sharing option in four countries outside the US and said it was “pleased with the results”.
Translated article from the American magazine Forbes – Author: Catherine Hamilton
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