As the video-streaming behemoth reorganizes its film divisions, Netflix is prioritizing quality above quantity by reducing the number of movies it releases. Moreover, there will be some layoffs and the departure of two of Netflix's most senior executives due to the merger of the company's small and midsize film departments.
The number of original feature films produced by Netflix has recently surpassed that of any other Hollywood studio. According to Bloomberg, during the previous two years, Netflix has released at least one original film each week, resulting in an annual output of more than 50 films.
As part of the organizational restructuring, Netflix's film division responsible for movies with budgets of $30 million or less will be merged with the team responsible for movies with mid-budgets between $30 million and $80 million.
Executives Leaving Their Positions
Certain jobs inside the company will be eliminated as a result of the reduction process, Bloomberg reported.
Ian Bricke, Vice President of the film division, is departing after more than ten years with the company. Bricke collaborated with directors, including Nicole Holofcener and the Duplass brothers, on The Kissing Booth film series.
After more than 15 years at Netflix, Lisa Nishimura, who pioneered the company's forays into stand-up comedy and original documentaries, has also decided to leave. At the moment, she is in charge of low-budget features and documentaries.
"We congratulate them both for their efforts to make us a world-class film company and wish them the best in the future," Netflix's head of film, Scott Stuber, said of the two departing executives.
He lauded Nishimura, noting that she has been with Netflix from its DVD-by-mail beginnings as an advocate for inclusivity on and off the screen. He expressed gratitude to Bricke and his assistance in a program for new moviemakers.
Stuber confirmed that the company is reducing movie production to increase the quality of its collection. Netflix has produced both highly acclaimed films like All Quiet on the Western Front and box office smashes like Glass Onion: A Knives Out Mystery. However, the sheer size of its catalog means that many films go unnoticed.
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Cost-Cutting Efforts
For the first time in over a decade, Netflix had a decline in subscribers in 2022, prompting the company to cut hundreds of jobs. The firm had roughly 12,800 workers as of the end of last year.
The movie streaming company introduced a lower ad-based membership option to offset losses caused by a declining user base. Reportedly, around 231 million paying consumers were added by the end of 2022.
Netflix's decision earlier this year to crack down on password sharing, which the company had previously promoted, was met with considerable criticism. Notwithstanding the backlash, Wells Fargo's equities analysts predict the company's crackdown will result in $3 billion in more income.
On Apr. 18, the company is expected to reveal its first-quarter performance.
