Netflix is the most popular streaming platform, but it also has to face increased competition in this very tight market today. As we learn from unofficial information, the service has ordered cost cuts to increase its profitability in the current (difficult) times.
Netflix cuts costs. He needs to save $300 million
At least that’s what the new newspaper reports that the streaming giant asked its employees to save company money at the beginning of the month. Recruiters responsible for hiring new employees are also to be more careful with the company’s accounts. Netflix indicated in a message to employees that the service does not plan to lay off or even stop hiring, but only wants to save on current expenses. According to “WSJ”, the goal of the platform is to save $300 million by the end of this year, which – considering the scale of Netflix’s expenses – is not a large amount. Last year, the company’s total operating expenses reached $26 billion. The American platform did not respond to these reports and declined a request for comment
There are at least a few reasons for introducing savings, but the most important are the delays in the fight against users sharing their accounts. As a reminder, these are people who – against the rules – sign up for one subscription, even though they do not live in one house. According to the Netflix regulations, only people living in the same household are allowed to watch movies and series from one account. The platform planned to introduce the first effective steps in this battle in the first quarter of this year, but these plans apparently backfired. For now, Netflix has piloted the ability to pay for a sub-account for a friend or family member who does not live with the subscriber. However, such a novelty has so far only been introduced in Canada, New Zealand, Portugal and Spain.
Some time ago, the company also launched the so-called the basic package with ads, which is much cheaper than the basic one. In the US, users who accept the need to watch a few advertising spots pay USD 6.99 for access to the service, which is USD 3 less than for the basic package without ads. As TechCrunch writes, it is estimated that Netflix will prevent account sharing in the US by the end of June at the earliest. Typically, similar “news” appear after some time in other countries as well.
Source: Gazeta
Mabel is a talented author and journalist with a passion for all things technology. As an experienced writer for the 247 News Agency, she has established a reputation for her in-depth reporting and expert analysis on the latest developments in the tech industry.
