Netflix looks for solutions after subscriber loss
WSJ media and entertainment reporter Joe Flint discusses the carefree spending of Netflix as the streaming service faces challenges and CNN+ short-lived streaming network.
Multiple projects in Netflix's animation department have reportedly been canceled as the streaming behemoth looks to cut costs following its first subscriber loss in over a decade.
NETFLIX'S COMPETITORS ‘GAINING ON THEM’ AS SUBSCRIBER GROWTH POSES CHALLENGES: JOE FLINT
According to The Wrap, animated projects that have been cut include an adaptation of Roald Dahl's "The Twits," an animated series based on Jeff Smith's "Bone" comic book series and Lauren Faust's "Toil and Trouble." Phil Rynda, Netflix's director of creative leadership and development for original animation, and many of his staff have also reportedly been let go.
In addition to the shake-up in the animation department, Netflix is also reportedly undergoing a restructuring of its engineering department, according to Bloomberg.
A spokesperson for Netflix did not immediately return FOX Business' request for comment.
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Netflix reported 200,000 fewer subscribers in the first quarter of 2022.
Though the company's own guidance projected it would add 2.5 million customers during the period, the company only added about 500,000 subscribers. Netflix said shutting down its service in Russia resulted in the loss of 700,000 subscribers. In total, the company has nearly 222 million subscribers worldwide.
In order to combat its subscriber losses, the company plans to crack down on more than 100 million households sharing passwords and introduce a cheaper, ad-supported subscription tier. Looking ahead, Netflix is expecting to lose another 2 million subscribers in the second quarter.
Shares of Netflix are down more than 65% year-to-date.
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