Netflix has announced that it is putting the brakes on the production of original content for its platform. This decision is part of a restructuring of its division responsible for creating exclusive films and series, which itself is accompanied by a wave of layoffs.
In 2023, Netflix plans to release 30 original films on its platform. In the space of just a few years, the streaming giant has become one of the biggest film producers in the world. And this, without counting the series, also very numerous, also created only for the users of the service. However, faced with such an abundance, a criticism comes back regularly from subscribers: all these productions are of very unequal quality.
One might think that this is the reason that pushed Netflix to reduce its production of original content from this year. But, as Bloomberg tells us, it was obviously economic reasons that led to this decision. In a press release, the firm announces a restructuring of its division dedicated to film production, laying off a handful of employees in the process.
Netflix will stop flooding us with original films
It is especially “low” budget films that will be impacted. Until now, one team was in charge of films costing less than 30 million dollars, while a second took care of films costing between 30 and 80 million dollars. In the coming weeks, these two teams will be merged into one.
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As often, this restructuring is therefore accompanied by layoffs, which managers have not escaped. These include Lisa Nishimura, who helped create Tiger King, or Ian Bricke, one of the creators of The Kissing Booth trilogy. The objective, if it is officially to facilitate decision-making, is more generally to save money.
A strategy that echoes Netflix’s efforts in recent months to diversify its sources of income, whether by developing its gaming division or by ending free account sharing. Anyway, having a lot less films of questionable quality certainly won’t hurt us.
Source: Bloomberg