[HN Gopher] Netflix Plans to Cut Spending by $300M in 2023
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       Netflix Plans to Cut Spending by $300M in 2023
        
       Author : mfiguiere
       Score  : 36 points
       Date   : 2023-05-12 17:24 UTC (5 hours ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | [deleted]
        
       | costanzaDynasty wrote:
       | I stopped streaming in Sept. Now I watch PlutoTV. It made me
       | realize I'm done paying for tv or movies services.
       | 
       | $100 per month times 12 for 20 years = $24000
       | 
       | now do you want the $24,000 for the next 20 years or do you think
       | the entertainment will give you $24000 worth
        
         | nomel wrote:
         | > I'm done paying
         | 
         | Related, I will pay whenever I can, because I'm done with ads.
         | A quick google search says Pluto averages 10 minutes of ads per
         | hour. That means over 15 percent of each of my viewing sessions
         | would be watching ads.
        
           | [deleted]
        
           | ChicagoBoy11 wrote:
           | For a short while I knew I was going to be in bed recovering
           | from a medical procedure and thought it was a good time to
           | use YouTube Premium since I'd be watching so much. I (maybe
           | sadly, maybe not), cannot fathom the idea now of going back
           | to using it without it. Which is something I would have
           | before then totally ridiculed someone for say!
        
             | temp_praneshp wrote:
             | Premium plus an addon to block sponsors
             | (https://sponsor.ajay.app/) has been great for me. I hate
             | watching youtube on the tv now, because that still has
             | sponsor blocks
        
             | no_butterscotch wrote:
             | What types of ads do you see on YouTube?
             | 
             | I use the Brave Browser and never see ads on YouTube.
             | 
             | Only ads in podcast shows where the podcaster is
             | advertising it, but even for those I have the SponsorBlock
             | plugin that skips those portions of the videos.
        
             | mrguyorama wrote:
             | I would pay for youtube premium to remove ads if Youtube
             | made it clear they intended to be good to non-mega sized
             | youtubers and be a helpful and supportive platform for
             | their needs.
             | 
             | Instead they have consistently taken a strategy of ignoring
             | anyone as much as physically possible, punishing even "big"
             | youtubers for asking innocent questions, making creator's
             | content worse without their permission and actively against
             | their will, and siding with large external businesses over
             | the needs of the majority of their content creators.
             | 
             | A youtube that I would spend money to support would do
             | things like provide dedicated support channels to medium
             | sized creators that could actually do things instead of
             | just being a sounding board, be VERY clear about what
             | advertisers do not want in content you want to make money
             | from, create high quality sponsor and/or merch integration,
             | reward creators for effort and polish over simply filling
             | the space with as much as possible, get rid of clickbait in
             | general, build a robust content licensing system so it
             | would be easier and more reliable for content creators to
             | sample video content in legitimate ways for a reasonable
             | cost (creators are not afraid to spend hundreds of dollars
             | on stock footage for a valuable video and would be willing
             | to license content), and other ways to make content
             | creators more effective and not encourage them to work
             | themselves to death in a content machine and antagonistic
             | treadmill system.
             | 
             | So yeah, fuck giving them a dime for actively harming the
             | people who actually make the stuff that brings me to the
             | platform.
        
         | oh_sigh wrote:
         | $100 is a lot to pay for streaming services. And to list prices
         | over 20 years is also strange. Netflix can cost $6.99/mo. Is it
         | worth $6.99/mo, or $83.88/year? I don't know, maybe, but it is
         | certainly more realistic than answering if a bundle of services
         | are worth $24000 per 20 years.
        
       | donmcronald wrote:
       | The password sharing thing really annoyed me. We were sharing a
       | password between two households, so, fair is fair, we tried to
       | pay the extra fee for an additional household.
       | 
       | However, the profile transfers don't work properly. We couldn't
       | transfer the right profile to the second household. I think it
       | has something to do with it being the first / primary profile.
       | It's still broken. They said they'd give us a refund, but didn't.
       | Now we're paying more for a worse, broken product.
       | 
       | I spent 45m with support that _did not give a single fuck_.
       | 
       | It's not on my credit card or it would have been cancelled months
       | ago. I don't care if they want to change pricing or crack down on
       | password sharing, but when they're asking for more money I expect
       | things to work. They deserve to get out-competed IMO.
        
       | ei8ths wrote:
       | netflix is just trash, half the shows or more push the woke
       | agenda, whenever two males get near each other i just know
       | they'll some how magically both be gay. there is nothing creative
       | and are falling into the disney problem.
       | 
       | now i think netflix shines with the foreign films, i've been
       | enjoying those more then the american films, but that doesnt
       | justify paying the monthly fee.
        
         | no_butterscotch wrote:
         | haha I agree - there's a couple netflix shows that I'll renew
         | for to watch for a month ("I think you can leave" season 3
         | which comes out soon)
         | 
         | But generally I'm not going to sub past one month for it.
        
       | ilrwbwrkhv wrote:
       | The biggest mistake Netflix made was thinking that they are a
       | tech company instead of being a media company. All the extremely
       | high paid software devs creating this massive mangle of
       | microservices. What they should have realized is that porn sites
       | have been supporting far more users around the world without
       | doing any of this microservices nonsense.
        
       | segmondy wrote:
       | I must be the only one here that loves Netflix. I probably have a
       | 100+ TV shows and Movies in my to watch list. Anyways,
       | $300million is a drop in the bucket compared to their yearly
       | expense. Why is this news again?
        
       | alexfromapex wrote:
       | This sounds like a false narrative designed to cover up the
       | negative impact that the news of the password crackdown has
       | caused
        
       | daemon_of_chaos wrote:
       | Finally getting the hint and canceling Witcher.
        
       | lemoncookiechip wrote:
       | It's just gonna be the same as HBO Max and D+. They'll remove
       | shows with low views from the platforms has a cost saving method
       | on residuals.
       | 
       | Increase prices, again.
       | 
       | And finally decrease the budget of newer shows, as well as
       | increase the amount of newer shows to try and capture a new
       | audience that won't subscribe, while pissing off the pre-existing
       | one.
       | 
       | Wouldn't be surprised if they also try to save on bandwidth by
       | increasing compression, removing a few servers...
        
         | ChuckNorris89 wrote:
         | _> They'll remove shows_
         | 
         | Arrr matey! We'll still get them.
        
           | nomel wrote:
           | Yes, and people will help propel the service to failure.
        
         | spacemadness wrote:
         | I am really skeptical they have any more room to increase
         | prices, at least at 4K.
        
           | xhkkffbf wrote:
           | Yup. Their prices are just too high for occasional content.
           | It's simpler and cheap to just pay directly through Amazon
           | Video. Unless Netflix has three or four shows that you can't
           | miss, it's just too expensive.
        
         | jfengel wrote:
         | I wonder if they find a sweet spot of relatively cheap shows
         | with a small target audience. It may not matter if only a few
         | people watch, say, Filipino soap operas, if they can get it for
         | not much money.
         | 
         | That stuff strikes a lot of people as "crap", and it's a
         | problem that Netflix will recommend it to you when they've run
         | out of other things you actually want. A good recommendation
         | engine helps, but in the end Netflix is always going to have
         | mostly stuff that doesn't interest you.
        
       | ftxbro wrote:
       | they should spend even more money, to train a generative AI that
       | makes netflix shows
        
       | jdlyga wrote:
       | Netflix still has a strong app and a great interface. But quietly
       | other streaming services are starting to have much better overall
       | content than Netflix. You just wouldn't realize it because the
       | apps themselves aren't quite as good yet.
        
       | wand3r wrote:
       | Man, Netflix is really going down hill. I get that the entire
       | landscape has changed but they dont seem to be innovating. Why
       | not try to give small budgets to UCLA students or something like
       | that. Prefect the dubbing of all their content to make it more
       | appealing in other markets. Have some conviction in their shows
       | on a longer timeline and stop cancelling things after 1-2 seasons
       | effectively making the IP worthless. They can improve their
       | search so people have a better experience finding content and
       | don't churn. License their own content to othet studios.
       | 
       | They can definitely keep making money, but in my exoerience
       | Netflix has not been #1 or even #2 when I go to watch media now.
       | Which is a big change from a few years ago. I dont pay for it
       | myself or I would have cancelled.
        
         | SilverBirch wrote:
         | Here is the problem: What you're doing is describing ways that
         | Netflix can be a good media company. Netflix is valued as a
         | tech company and pays tech workers like a top tier tech
         | company. At some point they either have to do some innovative
         | new tech that separates them from the competition, or they have
         | to become an excellent media company- and that probably starts
         | with firing all the fat and happy tech workers.
        
           | thebradbain wrote:
           | Who's to say the proposed $300M in cuts won't touch tech?
           | They may be still trading as a tech company, but it looks
           | like they may be firing some of those engineers anyways.
           | 
           | So worst of both worlds?
        
           | curiousDog wrote:
           | Describing engineers as "fat and happy" is really derogatory.
           | Their spend on tech employees is a tiny fraction of total
           | content spend. Also, an even tinier fraction of what they
           | spend on services like AWS. If they want to cut costs,
           | there's a ton more low hanging fruit than letting people go.
           | In fact, revenue per employee is the highest compared to
           | other FAANG
        
           | VirusNewbie wrote:
           | Netflix is very unique in that they put significantly more
           | stock (and subsequently, capex) in making data driven content
           | decisions than other studios do.
           | 
           | I don't know how the gamble will play out, but if it works
           | well for them, I imagine they'll continue to pay top tier.
           | 
           | So while we may hate all their weird reality tv shows or
           | wonder why good stuff gets cancelled why other things
           | continue, it may have a lot less to do with a single
           | individual's decision.
           | 
           | Also note, Netflix is known to pay significantly more than
           | the rest of FAANG at this point, though they hire much less
           | frequently.
        
             | preommr wrote:
             | > Netflix is very unique in that they put significantly
             | more stock (and subsequently, capex) in making data driven
             | content decisions than other studios do.
             | 
             | > I don't know how the gamble will play out, but if it
             | works well for them, I imagine they'll continue to pay top
             | tier.
             | 
             | This would've made sense a little under a decade ago. The
             | last few years have shown how badly the idea works or
             | Netflix's models are.
        
             | panick21_ wrote:
             | And for anybody who is keeping score Amazon who is often
             | not data driven, but rather driven by random opinion of
             | random empowered employees. The result are worse not
             | better.
        
         | no_butterscotch wrote:
         | The good dubbing would also help me with learning Spanish. I
         | remember trying to watch The Office when it was still on
         | Netflix and it didn't have Spanish dubs or subs!!
         | 
         | I was floored. Peacock has both for The Office and the dubs are
         | pretty good.
         | 
         | I understand Netflix not wasting the time on content that isn't
         | theirs, like The Office. But still - its crazy their content
         | library hasn't at least added language support for the next 1
         | or 2 most popular languages. They can overlap those languages
         | with their top 50 or so shows?
         | 
         | I don't know if they've already looked into this and it just
         | isn't profitable.
        
           | thatfrenchguy wrote:
           | Can't you watch... Spanish-language TV shows?
        
         | jfengel wrote:
         | I think that the budget cut means starting fewer high-end
         | series. They've been saying for a year or so that they realize
         | it's not a good look to cancel so many shows. But I suspect
         | that manifests less as "finish shows they start with" as
         | "commit less".
         | 
         | I'd like to see them do more shows as one-season limited
         | series. I understand why they want to have cliffhangers that
         | encourage you to stay subscribed for months waiting for the
         | rest, but obviously that doesn't work if they cancel it.
         | 
         | I'm watching 1899 right now, and I'm enjoying it despite
         | knowing that it was canceled prematurely. It's pretty and fun
         | to watch. But it moves at a glacial pace and could just as well
         | be compressed into one season.
         | 
         | (For that matter... it's clearly "Lost, But On A Boat", and
         | whatever ending they actually had in mind was gonna suck. Shows
         | like that never end well. I'll probably be just as happy not to
         | have to watch whatever unsatisfactory solution they were going
         | to throw at me.)
        
       | arrjayh wrote:
       | I didn't read the article but the headline is hilarious. For a
       | company that has been so outward about hiring "all star talent"
       | I'm amazed they're needing to cut back. Just from the outside it
       | appears that things are pretty broken there...
        
       | lljk_kennedy wrote:
       | I wonder if No Rules Rules is still the playbook there.
        
       | mvdtnz wrote:
       | https://archive.is/uwNXi
        
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       (page generated 2023-05-12 23:02 UTC)