The loss of Netflix subscribers is taking its toll. The main affected are the employees and some key processes within the streaming company.
In a report published by The Wall Street Journal, it was learned that the company established stricter rules for the creation and distribution of content. The reasons for these measures are in the decrease in subscribers that was recorded in a decade during the first and second quarters of the year. This forced a rethink of Netflix’s business model, which will now include a cheaper ad-supported plan. Some of the measures taken by the company are:
The containment of expenses by Netflix goes through a reduction of its employees. He made the first layoffs of 2022 and cut benefits for employees. They will now have a $300 limit to order coffee mugs, sweatshirts and other items from the company. Even the number of paid software licenses was limited internally.
It may interest you: Netflix lost 970,000 subscribers in the second quarter of 2022
Hire more ‘junior’
Regarding the recruitment of emerging talent, the company is prioritizing ‘junior’ profiles. Now he is focusing on internship contracts and recently graduated professionals. This change focuses on engineering tasks and thus there will be less expenses in salaries “while growing again”.
A new paradigm within entertainment is Netflix’s measure of placing a control on content spending. For years, the company ‘burned’ millions of dollars to create digital content. Although the amounts in percentages were not disclosed, it is likely that more moderate volumes will be seen in investment in this area.
Amazon Web Services (AWS) is also in the crosshairs of Netflix, and the reason is because it is the platform’s service provider. It is there where the content that is visible to the whole world is stored. His plan is to cut costs there by limiting the number of data copies and optimizing the available infrastructure. In this way, Netflix faces the loss of subscribers and pins its hopes on the income of the plan with ads that would arrive in November.
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