Netflix is already canceling several shows and movies after its recent financial and subscriber problems.
According to The Wrap, the streaming giant has pulled the plug on many Netflix shows in development. The company's animation department has borne the brunt of the issues currently plaguing Netflix, which has suffered from a decline in market value and subscriber base since the beginning of the year.
Yesterday (April 21) we reported on Netflix's announcement that it had lost 200.000 subscribers since the beginning of 2022. Also, Russia's recent withdrawal from the streaming company due to the war in Ukraine cost it an additional 700.000 viewers (according to Reuters). . Netflix estimates that it will lose another two million paying customers before June 2022, a news that has dropped the company's market value by 50.000 million dollars (according to the BBC).
Boasting its first loss of subscribers in over a decade, as well as a huge drop in its stock valuation, Netflix has apparently decided to proactively fight further financial instability. And that means canceling several projects in development.
According to The Wrap's report, Netflix's director of creative leadership and development of original animation, Phil Rynda, was let go, along with numerous members of his staff, earlier this week.
Not only that, but the streaming giant has also canceled numerous in-house animation projects, including an adaptation of Roald Dahl's The Twits. A highly anticipated animated series based on Jeff Smith's beloved Bone comic book series, as well as Lauren Faust's Work and Trouble, were other productions unceremoniously launched by the streamer.
But it's not just the highly anticipated Netflix series that have been scrapped. Netflix movies, including Bright 2, a sequel to a fantasy film starring Will Smith, have also been removed by the streaming company, according to What's on Netflix. The cancellation of Bright 2 likely has closer ties to the 2022 Oscars slap incident, in which Smith physically assaulted Chris Rock live on stage. We previously reported that Netflix and Sony pulled out of Will Smith's projects in development following the incident. But, according to Bloomberg reporter Lucas Shaw, Netflix claimed that Bright 2's cancellation had little to do with Smith's Oscar showdown.
It's unclear how many Netflix TV series and movies are similarly slated for the pit. However, it seems that some of the streamer's biggest hits (Stranger Things, The Witcher, Arcane, and Squid Game, to name just four) are safe.
It seems that new movies and shows in development are in danger of falling through the cracks. But, as we've seen before on Netflix, the streaming giant isn't averse to pulling the plug on fan-favorite productions if it deems it necessary. We're looking at you, Archive 81, and The Dark Crystal: Age of Resistance.
We've reached out to Netflix for additional comment on the above and will update this story if we contact you.
Analysis: Tough times ahead for Netflix
Without a doubt, these are difficult times for Netflix. Sure, the streaming company is still the largest service of its kind in the world, but there's no denying that it's been rocked by recent subscriber losses and a big drop in market share.
Netflix faces increased competition from Disney Plus, Prime Video and HBO Max. The streaming trio also offers good value for money and high-quality entertainment for viewers, so Netflix is no longer in full control of the streaming market like it used to be. Add to that the growing influence of Apple TV Plus in the streaming industry (Netflix's recent Best Picture Oscar nomination has surely taken Netflix execs by surprise) and Netflix's market dominance is diminishing over time.
The skyrocketing cost of living in some countries, such as the UK, has also had a negative effect on Netflix's subscriber base. As food, fuel, and energy prices rise around the world, households must make difficult decisions about where to spend their money. If it's a decision between feeding your family/heating your home or continuing to pay for Netflix, there's no contest: Netflix will always lose.
And then there's the company's decision to crack down on password sharing between homes. Netflix recently announced that it will no longer turn a blind eye to subscribers who freely share their account information with family or friends living in other locations. To get around this, Netflix began testing a new paid "Add Extra Member" feature, whereby account holders can pay an extra $2.99 per month to allow people living at another address to use their account. . Based on reactions from various Reddit users over the past few days and weeks, it's a move that's proving wildly unpopular.
Whether Netflix can recover from these setbacks remains to be seen. Yes, the streamer's 220 million global subscriber base means all should be fine by now. Netflix also hopes that these problems are only temporary and that Netflix's next big hit will entice users to come back in the future and start paying for the privilege of rewatching their content.
However, there's no denying that Netflix must navigate choppy waters right now. His next steps could be crucial in determining whether he can win back the audience's support or if things will get worse from now on.