Last week, Netflix’s latest investor report revealed a considerable subscriber loss, throwing the streaming giant into turmoil. The company reported seeing its stock value sink by 40% after the announcement. This loss of value has forced the cancellation of several new shows and movies.
Netflix has decided to cut costs across the board. Alongside the loss of 200,000 subscribers, the streaming company has been working on a restructuring of its business. The new structure will include junior and senior roles for its creative talent. Entertainment reporters believe disgruntled employees have already begun to depart Netflix.
The company’s announcement of losing 200,000 subscribers over the first quarter of the year was misleading; the drop coincides with its withdrawal from Russian territories. Exiting Russia cost Netflix 700,000 subscribers, and the addition of 500,000 new subscribers did not cover the loss of the Russian members.
The fall in subscriptions was the first in a decade and left Netflix scrambling to find answers to its first revenue loss. While Netflix said it is considering a new subscription plan and ways to crack down on password sharing, the loss of revenue has left the company trying to cover the lost funding for its slate of original shows and movies.
The most significant losses are in Netflix’s animation department. The company’s head of animation, Phil Rynda, has departed along with his slate of shows and many team members.
Animation had become one of the areas of growth at Netflix, with the company looking to develop its Roald Dahl collection as animated shows and movies. The purchase of the Roald Dahl Story Company was intended to allow Netflix the chance to create a whole host of shows inspired by the author.
The Twits is one of the first casualties at Netflix. The Roald Dahl animated adaptation of Charlie and the Chocolate Factory has been saved.
Other canceled animated shows include the anticipated Bone series. Jeff Smith’s comic, Bone, has been trapped in animation purgatory since the mid-90s and has repeatedly failed to make it to the screen. The streaming giant has also canceled my Little Pony creator Lauren Faust’s Toil and Trouble.
Among the other shows and movies canceled is Will Smith’s Bright 2. The first installment was one of the earliest successes for Netflix originals and had been set for a sequel.
There were whispers that Smith’s Oscar night meltdown was the reason for the cancelation of the movie; however, according to Bloomberg reporter Lucas Shaw, the cancellation had nothing to do with Smith’s Oscar antics.