Netflix plans to reduce its spending by;$300M this year, according to the Wall Street Journal.
;Last month, Netflix exceeded first quarter estimates but offered a weaker forecast, suggesting;continued challenges;in its growth efforts.
- While Netflix has urged its employees to be mindful of expenses, the company has no plans for a hiring freeze or;further layoffs, according to the WSJ.
- The cost-cutting measure is partly due to a delay in cracking down on password sharing, which is now expected to generate new revenue in the second half of the year
- Netflix said it plans to begin restricting password sharing in the U.S.;by the end of June. The company is rolling out a paid-sharing plan that allows the primary account holder to pay an extra fee to add up to two other users outside of their household.
- Netflix added 1.75 million subscribers during Q1, up nearly 5% YoY but a slowdown compared to before and during the pandemic.