Netflix experienced a decrease in subscribers in the past quarter after the world began to reopen. This caused the company’s shares to fall and Netflix canceled several animation, film projects and even cut manpower as a measure to reduce operating costs. Most recently according to a Variety report, Netflix laid off about 300 more of their employees with most of them in the United States.
The reduction in share value of up to 70% compared to January forced the company to be more prudent in spending. Just yesterday Netflix CEO Ted Serrandos confirmed the company will introduce cheaper subscriptions with ad support for the first time. This will hopefully curb the issue of customers canceling their subscriptions due to rising costs.
Unlike three years ago, Netflix now has contenders such as Disney+, HBO Max, Peacock and Paramount+ in the United States. Popular content such as Friends for example is starting to be pulled and this is having an impact on Netflix which does not have the classic legacy content that many customers are interested in.
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