Netflix tells employees to spend company money ‘wisely’ after major subscriber loss
Key Advisors Group co-owner Eddie Ghabour provides insight into how ‘tough economic times’ are impacting the streaming services, Netflix and Paramount+.
The directive is found in a memo, first reported by Variety, titled “Netflix Culture – Seeking Excellence.” Under the “Judgment” section, it encourages employees to “spend our members’ money wisely.”
In this photo illustration, the logo of Netflix is displayed on a laptop screen and on a smart phone screen in Tehatta, Nadia, West Bengal, India on October 13, 2020. (Photo Illustration by Soumyabrata Roy/NurPhoto / Getty Images)
The memo goes on to detail other company best practices like selflessness, courage, communication, inclusion and more.
The memo comes after Netflix suffered its first subscriber loss in more than a decade. The company’s customer base fell by 200,000 subscribers during the January-March period, according to its quarterly earnings report.
The company blamed password sharing among its members and increasing competition in the streaming space for creating what it called “revenue growth headwinds.” Netflix estimated that besides its almost 222 million paying households, the service is being shared with an additional 100 million homes, including 30 million in the U.S. and Canada.
Netflix CEO Reed Hastings. (Getty Images / Getty Images)
Netflix has announced plans to crack down on password sharing and introduce a cheaper, ad-supported subscription tier. In addition, the company has reportedly canceled several animated projects and let go of some of the department’s staff in an effort to cut costs.
Netflix expects to lose another 2 million subscribers in the second quarter.
Fox Business’ Lucas Manfredi contributed to this report.