Netflix (Shutterstock photo)
After a decade of unprecedented growth, 2022 was Netflix’s worst year ever. In April alone, the company’s shares fell 60%, becoming for a while the worst performing stock in the S&P 500 index.
The reasons for the decline range from the addition of more and larger players to the streaming industry, and perhaps a natural collision with the ceiling (most of those who want a subscription to Netflix have probably already done so).
After its stock price began to decline, Netflix began taking steps such as bans and permits of password sharing and offering a cheaper ad-supported version of the service.
But despite this, the streaming giant had to be dragged into cuts. This week it announced that it will cut back on the amount of original films it produces, as well as combining and rebuilding several departments in the company. Several small and medium-sized units were combined, resulting in job losses and the departure of two longtime executives, according to Fox Business.
In the past, Netflix produced more than 50 movies a year, far more than any other company. Some of them, such as “The Power of the Dog” and “Don’t Look Up”, were even nominated for an Oscar, and “There’s Nothing New in the West”, this year won the best international film.
But with so many movies coming from Netflix, many of them disappear without notice, with many critics dismissing them as undercooked.
More in-
Will the cuts and restructuring lead Netflix to adopt a model of quality over quantity? Will we get more good movies? We’ll have to wait, but for now, the company has some good news to announce.
The success of Netflix at the time was due, among other things, to the possibility of watching iconic series from “Friends” to “Breaking Bad” anytime and anywhere. But at some point, the movie and series studios realized that they had created their biggest competitor on the back of their most popular brands, and started moving them to their streaming services as soon as the contracts ended.
One of the shows slated to drop was the Emmy-winning cult comedy “Family Troubled,” often cited as one of the best sitcoms of all time. A decade ago, Netflix premiered a new season of the comedy. It was a bit embarrassing for the company when news broke that the sitcom had been pulled from the service. Fortunately, Netflix struck a last-minute deal to keep the comedy series with Disney’s television division, which controls the rights.
The new licensing deal also states that Disney’s Hulu must give up its current access to the first three seasons at some point this year, so Netflix will be the exclusive home for some of the classic series.
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