The Guide #266: The knives are out at Netflix
In this week’s newsletter: Stalling subscriber numbers have led to a corporate bloodbath, but the streaming giant has an inherent quality problem that will be a lot harder to fix
TL;DR
- Netflix has laid off 1,000 employees (6% of its workforce) amid slowing subscriber growth and lack of investor confidence.
- Key executives, including chief content officer Bela Bajaria and head of film Dan Lin, were among those fired.
- The layoffs suggest Netflix acknowledges a problem with the quality of its programming, with fewer standout new shows and a shaky record with returning series.
- The company's "all-at-once" release strategy and tendency to cancel shows before they develop are cited as potential causes for the quality issue.
- Netflix aims to be an "everything store" but is criticized for not having enough compelling content to watch, competing more with YouTube than traditional streamers.