Netflix has announced the restructuring of its film production units. Objective : release fewer original films, but higher quality.
Netflix was producing at a staggering rate, sometimes at the expense of quality
The streaming industry is having a tough time, having grown exponentially during the pandemic. Even its most important players are affected; Disney+, for example, announced last February that it was laying off 7,000 people. For Netflix, the worst period came in 2022, prompting the service to proceed with several waves of layoffs.
If the platform has shown more positive signs since then, keep reviewing your organization to be more efficient and emphasize profitability. For about two years, Netflix releases one movie a weekan impressive pace to compete with studios like Paramount who released their own streaming services and then stopped licensing their content.
Yet only a few have won awards, reached large audiences, or had the cultural impact similar to some of the greatest blockbusters.
Two divisions merge, leading to layoffs
Thus, the division that works on small projects with a budget of $30 million or less, and the one that produces mid-budget films costing between $30 million and $80 million, will merge. This restructuring, reported by the media Engadgetwill cause the departure of several employees and two important executives. Lisa Nishimura, head of documentaries such as Tiger King and low-budget films, as well as film unit vice president Ian Bricke, is leaving the company after more than a decade.
With this reorganization, Netflix to reduce the number of films releasing in 2023 to ensure the division produces more high-quality projects. Note that the company has another division that produces big-budget movies; for the moment it is not known whether it will be affected by the reshuffle.
Netflix steps up efforts to remain #1 in global streaming. The platform has released an ad-supported offer, discontinued free password sharing, and even lowered the price of its subscription in some countries, in a bid to attract more users.
This announcement comes as Apple TV+ revealed plans to invest $1 billion a year to produce movies for darkrooms. Similarly, Disney+ recently explained that it wants to work on fewer projects for its service by focusing on quality.
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