Netflix plans to cut spending by $300 million to boost profitability
Over the past few years, Netflix has been working on different strategies and plans to increase its revenue. As per reports from the Wall Street Journal, as competition is getting high, Netflix is planning to reduce its expenses by $300 million to increase profits.
In an inside discussion, Platform warned its employees to be careful about their expenses by highlighting new hires. Although there are no updates about any layoffs or freezing the hiring process,
Netflix is going in the right direction by reducing its expenses. Last year, the company’s expenses were only $26 billion. Along with this, the platform is finding more ways to reduce expenses, including by reducing real estate footprints and updating salary ranges. With all these efforts, the company was successful in increasing its cash flow from $3 to $3.5 billion in 2023.
Netflix is planning to generate more revenue
This choice was made after the business suffered its first subscriber loss in ten years, which forced major strategic adjustments, including a crackdown on password sharing in nations including Canada, New Zealand, Portugal, and Spain. According to the new policy, paying subscribers must designate a primary address for their account, and if someone uses the account but doesn’t reside there, Netflix will charge them. The company currently charges a fee for an additional two members per account.
To gain more subscribers, Netflix is planning to add more subscribers to the platform, for which it has introduced a new ad-supported plan that offers $6.99 per month. By introducing the latest ad plan, Netflix is all in for competition with other streaming platforms like Disney+, Hulu, HBO Max, and Peacock. These platforms are also offering ad-supported options.
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