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Netflix reportedly plans to cut spending by $300 million this year

Netflix is planning to cut its spending by $300 million this year, according to a new report from The Wall Street Journal. The report indicates that part of the reason the streaming giant is looking to cut costs is because it delayed its plans to crack down on password sharing in the U.S. and elsewhere from the first quarter of the year to the second quarter, which means that revenue from the move is now expected to come in toward the second half of the year.
The company urged staff earlier this month to be sensible with their spending, including in relation to hiring, but noted that there would not be a hiring freeze or additional layoffs.
A Netflix spokesperson declined to comment.
It’s worth noting that although Netflix plans to cut costs by $300 million this year, this number represents a small fraction of the company’s overall expenses. For instance, Netflix’s operating expenses last year were about $26 billion.
The streaming giant beat estimates for the first quarter of the year but reported a lighter-than-expected forecast last month. Netflix raised its estimate for the amount of free cash flow it aims to generate in 2023 to at least $3.5 billion, up from $3 billion.
Netflix has been exploring new ways to generate revenue. The company launched its crackdown on password sharing in Canada, New Zealand, Portugal and Spain earlier this year. In these countries, Netflix requires paying users to set a primary location for their account. If someone they don’t live with uses their account, Netflix alerts them to “buy an extra member.” Netflix allows up to two extra members per account for a fee, which varies from country to country.
In addition, the company launched a new ad-supported plan called “Basic with Ads” last November. The tier costs $6.99 per month, which is $13 less than Netflix’s Premium plan, nearly $9 less than the Standard plan and $3 less than the Basic plan. With this plan, Netflix is competing with other major streaming services that offer ad-supported options, including Disney+, Hulu, HBO Max, Paramount+ and Peacock.
In an effort to lower costs, Netflix conducted a series of job cuts last year. In May 2022, the company laid off approximately 150 staffers. A month after that, the company laid off 300 more people, which represented about 3% of its workforce at the time. Netflix then laid off another 30 employees in September who were part of its animation department.
Netflix’s password sharing crackdown is expected to hit the U.S. on or before June 30.

Netflix will crack down on password sharing this summer

Netflix reportedly plans to cut spending by $300 million this year by Aisha Malik originally published on TechCrunch
Netflix reportedly plans to cut spending by $300 million this year

Netflix will crack down on password sharing this summer

Netflix’s long-awaited crackdown on password sharing is coming soon to the U.S., the streamer said on Tuesday.
Netflix originally planned to roll out “paid sharing” in the States during the first quarter of 2023. However, Netflix now says it’ll start rolling out the change — an update designed to convert account-sharers into paying users — a little later, on or before June 30.
This move is not limited to the U.S., either. “We are planning on a broad rollout, including in the US, in Q2,” the streamer said in its first-quarter 2023 earnings report. Alongside this announcement, Netflix also bid farewell to its 25-year-old mail-order DVD business. RIP.
Netflix’s quest to boost revenues by curbing password sharing kicked off earlier this year in Canada, New Zealand, Portugal and Spain. In these countries, Netflix requires paying users to set a “primary location” for their account. Going forward, if someone they don’t live with uses their account, Netflix alerts them to “buy an extra member.” Netflix says it will allow up to two extra members per account, and its fee per extra user varies by country. For example, it’s an additional CAD $7.99 in Canada and €3.99 in Portugal.
Speaking of revenue, Netflix fell short of analysts’ expectations for its first quarter of the year. The company said it brought in $8.16 billion during Q1 2023, while Wall Street anticipated a slightly higher figure — $8.18 billion. However, the firm reported higher-than-expected earnings of $2.88 per share in Q1; analysts had anticipated $2.86 per share.
Earlier in 2023, Netflix breezily summarized its paid-sharing update as a chance to clarify “confusion about when and how you can share Netflix,” but make no mistake, this is a crackdown. On Tuesday, Netflix played a similar tune, telling investors that the change “will result in a better outcome for both our members and our business.”
“We see a cancel reaction in each market when we announce the news, which impacts near-term member growth,” Netflix said. “But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”
Netflix ended regular trading with its stock price at $333.70 per share. After hours, the company’s individual share price slipped below $307, before rebounding to about $330 (as of 2:58 p.m. PT).

Netflix kisses mail-order DVDs goodbye

Netflix will crack down on password sharing this summer by Harri Weber originally published on TechCrunch
Netflix will crack down on password sharing this summer

Comedian Hasan Minhaj returns as The Riddler in new Spotify podcast series

Among the wave of Spotify announcements coming out of today’s Spotify Stream On event, the company shared some exciting news with podcast listeners — in particular, Batman fans. Spotify is launching a new podcast series “The Riddler: Secrets in the Dark,” starring comedian-actor Hasan Minhaj as The Riddler.
As part of Spotify’s exclusive multiyear partnership with DC and Warner Bros, “The Riddler: Secrets in the Dark” will premiere later this year and will see Minhaj reprise his role as the supervillain. Minhaj starred in the 2022 Spotify podcast “Batman Unburied,” which starred Winston Duke as the Dark Knight. Batman/Bruce Wayne will also appear in the new podcast series along with Barbara Gordon and Alfred.
“The Riddler: Secrets in the Dark” is a scripted “Batman” spinoff series that follows an unexpected duo — The Riddler and Batman — as they bring down another villain tormenting the streets of Gotham City.
“Audiences are going to travel back to Gotham City with me in a story that leaves clues, puzzles and shines a spotlight on my personal favorite character, The Riddler,” Minhaj said in the announcement video.

“Batman Unburied” premiered on the audio streaming service in May 2022 and climbed its way up Spotify’s top podcast charts. At one point, it even took the crown from “The Joe Rogan Experience,” which was the No. 1 podcast globally on Spotify in 2022 despite its controversial host.
Plus, Spotify recently launched “Harley Quinn and The Joker: Sound Mind,” which was also a huge hit among fans, reaching the top of the charts in six markets, according to the company.
As Spotify bets on original programming to boost its overall podcast strategy, the DC podcasts are certainly a smart move being that podcasts with recognizable characters, especially from the Batman franchise, will likely perform well in this IP-driven world we live in.

Podcast series ‘Batman Unburied’ set to premiere on Spotify after ‘The Batman’ heads to HBO Max

Speaking of recognizable voices, Spotify also announced today an exclusive video partnership with Markiplier (Mark Fischbach), the popular YouTuber with 34.5 million subscribers and approximately over 19 billion views. The partnership allows for Markiplier to produce exclusive video episodes of “Distractible” and “Go! My Favorite Sports Team.”
“While we love the audio world and still aim to bring you the very best in auditory experiences, by bringing our faces into the mix, we aim to give you an as-yet-unseen dimension to your listening experience. Imagine if you could smell a movie, imagine if you could smell us . . . who knows what the future will bring?” Markiplier said in a hilarious and thought-provoking statement.
Now, instead of just listening to his voice, Spotify users will also get to watch videos of Markiplier alongside his content creator friends Wade Barnes and Bob Muysken.
Another podcast getting the video treatment is “Forbidden Fruits” with actresses Julia Fox and Niki Takesh, which will return for a second season on March 17. The new episodes will be released as an all-video podcast, reflecting the growing trend of video-led podcasting.
According to Spotify, there are over 70,000 video creators on the platform. In April 2022, Spotify expanded the ability for creators to publish video podcasts in the U.S., Canada, New Zealand, Australia and the U.K.
Separately, the company revealed that “The Comment Section” hosted by TikTok star Drew Afualo, would be moving exclusively to Spotify on April 5.
During today’s event, Spotify announced an array of new podcaster tools, such as a redesigned Podcasters dashboard that includes an Anchor integration and the launch of a new feature “Autoplay for Podcasts.” Plus, the company is teaming up with Patreon to allow users to listen to Patreon content on Spotify.

Spotify is revamping its podcaster tools, including Anchor, and is partnering with Patreon

Comedian Hasan Minhaj returns as The Riddler in new Spotify podcast series by Lauren Forristal originally published on TechCrunch
Comedian Hasan Minhaj returns as The Riddler in new Spotify podcast series

Google rolls out tests that block news content for some users in Canada

Google has launched tests that block access to news content for some users in Canada in response to the Canadian government’s online news bill. Bill C-18, or the Online News Act, would require platforms like Facebook and Google to negotiate deals that would pay news publishers for their content. The bill is currently before the Canadian Senate for debate.
The company told TechCrunch that the tests impact “a small percentage” of Canadian users. The tests limit the visibility of Canadian and international news, and affect all types of news content.
“We’re briefly testing potential product responses to Bill C-18 that impact a very small percentage of Canadian users,” a spokesperson for the company told TechCrunch in an email. We run thousands of tests each year to assess any potential changes to Search. We’ve been fully transparent about our concern that C-18 is overly broad and, if unchanged, could impact products Canadians use and rely on every day. We remain committed to supporting a sustainable future for news in Canada and offering solutions that fix Bill C-18.”
Canadian Heritage Minister Pablo Rodriguez said on Twitter that Canadians won’t be intimidated by the tests and that tech giants need to be more transparent and accountable.

It’s disappointing to hear that Google is trying to block access to news sites. Canadians won’t be intimidated. At the end of the day, all we’re asking the tech giants to do is compensate journalists when they use their work. (1/2) https://t.co/11iRMA9jpL
— Pablo Rodriguez (@pablorodriguez) February 23, 2023

“It’s disappointing to hear that Google is trying to block access to news sites,” Rodriguez said in a tweet. “Canadians won’t be intimidated. At the end of the day, all we’re asking the tech giants to do is compensate journalists when they use their work. That’s why we introduced the Online News Act. Tech giants need to be more transparent and accountable to Canadians.”
Last year, Facebook threatened to block the sharing of Canadian news content unless the government amended legislation that would force digital platforms to pay news publishers. In 2021, Facebook briefly restricted users in Australia from sharing or viewing news links on the platform due to similar legislation. Google is now borrowing from the Meta-owned company’s playbook.
The move from Google doesn’t mark the first time that the company has opposed Canadian legislation. Last year, Google expressed concerns with Bill C-11, or the Online Streaming Act. The bill would force platforms like Google-owned YouTube to more prominently feature Canadian content. Google argued that the bill would negatively affect creators and viewers, and limit content discoverability. The Canadian Senate recently passed the bill with dozens of amendments, and it will be reviewed by the House of Commons.
A few months ago, U.S. Trade Representative Katherine Tai issued a statement noting that the online news and streaming bills discriminate against American businesses. The U.S. government has also raised concerns about the trade implications of the bills.
Google rolls out tests that block news content for some users in Canada by Aisha Malik originally published on TechCrunch
Google rolls out tests that block news content for some users in Canada

Disney+ reports its first subscriber loss of 2.4M subscribers, plans to lay off 7K employees

Disney’s first quarter with CEO Bob Iger back in command isn’t looking so good. Disney announced its Q1 2023 earnings today, reporting a total of 161.8 million Disney+ global subscribers, a decrease of 2.4 million subs from 164.2 million in the previous quarter. This is the streamer’s first subscriber loss since launching in 2019.
The drop in Disney+ subscribers was mainly driven by a decrease in Disney+ Hotstar subscribers. The international streaming service, available in India and parts of Southeast Asia, saw a decline of 3.8 million subscribers, down from 61.3 million subs in the previous quarter.
On the semi-positive side, Disney+ gained 200,000 domestic subscribers in the U.S. and Canada.
The results put Disney+’s 2024 target into question. Disney+ plans to reach 215 million-245 million subs by 2024, which could see streaming king Netflix, with over 230 million global subscribers, lose its crown. However, it’s looking like Netflix can relax — at least for now.
Notably, Iger announced during today’s earnings call that Disney will no longer provide subscriber addition guidance, the same move that Netflix recently made.
The subscriber loss comes on the heels of the company increasing the subscription price of its Disney+ ad-free plan to $11 per month in tandem with its new $7.99 ad-supported tier. For that reason, analysts were actually expecting a larger loss of 3 million subs, so today’s news is not entirely bad from that perspective.
Disney’s other streaming services, Hulu and ESPN+, had a decent quarter, gaining 800,000 subscribers and 600,000 subscribers, respectively. Hulu now has 48 million subscribers, and ESPN+ has 24.9 million.
Disney also reported an increase in revenue for the quarter, citing $23.51 billion, just barely beating expectations of $23.33 billion. Last quarter, Disney reported $20.15 billion in revenue. In addition, its operating loss among the direct-to-consumer segment narrowed, losing $1.1 billion versus $1.5 billion in Q4 2022. Disney plans to save $5.5 billion in costs.
As part of Disney’s effort to make its streaming business profitable, Iger revealed during today’s earnings call that the company is planning a significant restructuring, including job cuts. The layoffs will affect 7,000 employees. The company froze new hiring in November.
“I have enormous respect and appreciate for the dedication of our employees worldwide,” Iger said during the call. “While this is necessary to address the challenges we face today, I do not make this decision lightly.”
There have been rumblings in the media that Disney may be exploring the sale of licensing rights for its films and TV series to its competitors in a desperate attempt to combat streaming losses. If the rumor turns out to be true, this would be a significant change in strategy since Disney is known to keep much of its original programming exclusively on Disney+ and Hulu.
Warner Bros. Discovery (WBD) was the most recent major media company to license its shows in order to gain revenue. WBD struck deals with Roku and Tubi to license 2,000 hours of movies and TV shows, including “Westworld,” which was pulled from HBO Max in December.

Disney+ reaches 164.2M subscribers as it prepares for ad-supported tier launch

Disney+ reports its first subscriber loss of 2.4M subscribers, plans to lay off 7K employees by Lauren Forristal originally published on TechCrunch
Disney+ reports its first subscriber loss of 2.4M subscribers, plans to lay off 7K employees