Netflix reportedly scaling back movie development amid restructuring
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Could Netflix (NASDAQ:NFLX) be facing the music following years of investing billions of dollars to produce exclusive, original movies for the streaming video giant?
That possibility emerged Friday following reports that Netflix (NFLX) has taken on a restructuring of its film production group, started a round of job cuts in the division, and set to scale back the number of movies it produces every year.
According to a report from Bloomberg, Netflix (NFLX) will merge its small-and-mid-sized movie production operations, cut some jobs, and slow the pace of over movie-making in order to tighten up on overall spending and focus on higher-quality films.
Additionally, two executives high up in the company's film operations are reportedly leaving Netflix (NFLX) as part of the new movie strategy. Lisa Nishimura, who oversaw Netflix's (NFLX) documentaries and smaller-budget films, and Ian Bricke, vice president of Netflix's (NFLX) film group, are both stepping down after more than a decade at the company.
The reports of changes in Netflix's (NFLX) film operations come less than a month after the company's All Quiet on the Western Front won four Academy Awards, and on the same day of the debut of Murder Mystery 2, Netflix's (NFLX) latest big-name movie produced under a deal with actor Adam Sandler.
Netflix (NFLX) has begun implementing new methods to increase revenue, such as charging subscribers in some markets an extra fee for sharing their passwords with people outside their home. On Thursday, Wells Fargo analyst Steven Cahall said that Netflix (NFLX) could soon see gains from its password-sharing efforts.