Syed Imran Haider 
Netflix has reportedly decided to minimize its expenditures by $300m this year. The Wall Street Journal released a report revealing the streaming giant has begun looking for ways to reduce its regular costs. Netflix also postponed its plans to crack down on the password-sharing matter in the United States.
The company also delayed the crackdown on password-sharing in other places from the first quarter to the second quarter of the year. According to tech analysts, the company’s move may mean it expects the revenue to land in the second half of 2023.
Netflix required the staff to behave sensibly with their expenditures earlier this month. While it also included recruitment-related matters, the company will not free the hiring process or go for additional downsizing. Netflix refused to comment when approached by social media.
The company spent almost $26 billion in its overall expenses. Although the streaming giant wants to reduce expenditures by $300m in 2023, the digit shows a small fraction of Netflix’s general expenses. The streaming giant also got a place in the news headlines for beating the revenue estimation for the year’s first quarter. However, it also reported a lighter forecast than expected in 2023. Netflix increased the estimate for free cash flow to generate up to $3 billion this year.
Password Sharing CrackdownÂ
While Netflix has already begun a password-sharing crackdown in other countries like Canada, it plans to do the same in the United States before or by June 30. According to the streamer, it planned to announce paid sharing in the country first quarter of 2023. It will work with the new change designed to convert account-sharing individuals into paying members.
The modified plan for password-cracking covers several countries, including the US, in the second quarter. Netflix also ended its 25-year-old DVD business by announcing the rollout of the password-sharing plan. The company fell short of the expectation for the first quarter’s revenue. The streaming giant notes it made $8.16 billion in the first quarter of 2023, whereas analysts expected $8.18 billion, a slightly higher amount. Netflix made more than expected revenue of $2.86 per share in the first quarter.
Ways to Generate RevenueÂ
Netflix has long been on the hunt for money-making ways. The streaming giant launched its crackdown on password-sharing matters in New Zealand, Spain, Portugal, and Canada. It requires paying users to establish a primary location for their Netflix account.
If someone other than the family living in the same house uses the Netflix account, the company alerts them to purchase an additional membership. The company allows up to two extra members per Netflix account for a specific fee, which is different for every country.
Netflix also downsized around 150 employees to lower its spending in May 2022. It again fired a three-percent of its staff, representing 300 staffers, due to the same reason. The company repeated the downsizing episodes in September 2022 by terminating thirty workers from its animation department. Apart from downsizing, Netflix introduced Basic with Ads – a new advertisement-supported program with varied plans last November. It let Netflix compete with other streaming services offering the same ads-supported options.
