Will Netflix, which has reduced the number of paying members for the first time in 10 years, shift to a strategy of investing in a smaller number of original works?



Netflix announced in its first quarter (January-March) 2022 financial results that the

number of members has declined for the first time in the last decade . As a result, Netflix is reportedly looking to change its investment strategy for original works.

Netflix, Facing Reality Check, Vows to Curb Its Profligate Ways --WSJ
https://www.wsj.com/articles/netflix-facing-reality-check-subscriber-loss-stock-plummet-cut-costs-vows-to-curb-its-profligate-ways-11650547424

Report: Netflix Wants to Invest in Fewer, Better Originals --Thurrott.com
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Netflix Shifting to Quality Releases Over Quantity, Spending to Slash: Report | iPhone in Canada Blog
https://www.iphoneincanada.ca/news/netflix-shifting-to-quality-releases-over-quantity-spending-to-slash-report/

Netflix has delivered more than 500 original works in 2021, and it is reported that it plans to change this investment strategy that emphasizes 'quantity over quality' to one that emphasizes 'quality over quantity'. According to information independently obtained by The Wall Street Journal, Netflix plans to renovate its transactions to limit risk and focus its investment on top-notch titles that deliver maximum returns rather than maximum reach. And that. In addition, it seems that the main internal index for Netflix is 'the ratio of the audience rating of the title to the budget'.

However, it seems that Netflix has no plans to reduce the investment in the original work. Netflix plans to increase its investment in original work in 2022 to over $ 20 billion, said Bella Bajaria, head of the company's global division, 'We're always great. We plan to invest the amount of money we need to create content and realize our creator's vision, 'he told The Wall Street Journal.



Netflix is one of the world's largest video streaming services with more than 220 million paying members, but in recent years competition with services such as HBO Max, Disney +, Amazon Prime Video, and Apple TV + has intensified. Each service continues to invest in the creation of original content to acquire users, and Netflix has been the first to invest a large amount of money in original works .

However, Netflix is also known for instantly discontinuing original works that didn't work.

Season 2 of Netflix's live-action version of 'Cowboy Bebop' is cancelled-GIGAZINE



Netflix has produced a number of hits, but some titles, such as squid games, cost less than other hits. The squid game producer told The Wall Street Journal, 'We're trying to cut costs by reducing the number of stories in the new season,' but Bajalia told The Wall Street Journal about the short-spoken title. Always from the issue of creativity (rather than the impact of). '

It is reported that the decrease in the number of paid Netflix members also led to a decrease in the morale of the company's employees.

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in Web Service, Posted by logu_ii