Netflix changes its strategy for its films after its historic loss of subscribers

Netflix changes its strategy for its films after its historic loss of subscribers

In response to its historical loss of subscribers, Netflix has reportedly decided to calm down on big-budget auteur films like The Irishman in favor of more cautious productions (understand profitable).

While Netflix – still dubbed the streaming giant – looks like it’s been on a steady climb after transforming the film industry, especially after the lockdown boosted subscription numbers, not all signals go green for the platform. The results for the first quarter of 2022 had the effect of a cold shower with a historic loss of subscribers for Netflix (nearly 200,000 fewer users worldwide).

Heightened competition from Disney+ and the fallout from the health crisis have put a damper on the streaming service’s expansion, which is therefore considering new economic strategies : internal staff reduction, invoicing of account sharing and advertising under study, as well as a new branch on the video game side.

The Hollywood Reporter released a report drawn from several interviews with inside sources, including some Netflix executives and producers. According to the article, the original independent film division, which produced feature films with a budget of $30 million or less such as mank, has also seen its workforce reduced. A source, however, claimed that “small movies won’t go away“however.

In contrast, another source explained that “this tendency to do everything to attract talent and give them carte blanche is disappearing“, like in particular an Oscar-winning film like The Irishman by Martin Scorsese who benefited from an estimated budget of nearly 160 million dollars, or to a lesser extent the Okja from Bong Joon-ho to $50 million.

In Netflix’s sights

Still according to the report of THRNetflix would thus aim for fewer and more cautious projects, without necessarily denying the big projects competing with Hollywood blockbusters like 6 Underground, Red Notice, Adam through time or soon The Gray Man (between 115 and 200 million). Without forgetting the continuation of Red Notice and those ofAt loggerheads for which the platform has deposited more than 450 million dollars on the negotiating table.

The article, however, cites a more concrete example:Instead of making two films at $10 million each, the company will instead make one for $20 million.The broadcaster won’t turn down new acquisitions either, as evidenced by the recent $50 million+ deal for Emily Blunt’s thriller Pain Hustlers.

On the other hand, no clear and official directives have yet been given to Netflix executives and producers, even if “conversations will take place with producers and directors in the coming weeks about the importance and genres [des films]“. By then, The Gray ManNetflix’s next ticket showcase starring Chris Evans and Ryan Gosling, will land on July 22.

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