a black thursday lived Netflixsince this June 23 the massive dismissal of more than 300 jobs was reported, adding to previous exits, which increases uncertainty in the streaming giant.
“Today we are sadly letting go of around 300 employees,” a Netflix spokeswoman told dead line. “While we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and we are working hard to support them through this difficult transition.”
The cuts are affecting a number of different teams, primarily in the United States, but also including Asia Pacific, Europe, the Middle East and Africa, and Latin America, including the company’s product and legal divisions.
Ever since rumors surfaced that Netflix was eyeing a cheaper, ad-supported tier for its streaming video service, we’ve been holding our breath, waiting for the details to fully emerge. And while that hasn’t happened yet, we’re now one step closer: Netflix Co-CEO Ted Sarandos confirmed that what was once an idea will soon be a reality.
“We are adding a level of ads; we are not adding ads to Netflix as you know it today. We’re adding a level of ads for people who say, ‘Hey, I want a lower price and I’ll see ads‘” Sarandos told a crowd of attendees at the Cannes Lions advertising festival on June 23, according to The Hollywood Reporter.
Sarandos’ comments come shortly after his co-CEO, Reed Hastings, made a similar statement when speaking to investors in April. Hastings said that “allowing consumers who want a lower price and are tolerant of advertising to get what they want makes a lot of sense.” At the time, Hastings was unclear on what such a plan would look like, and whether or not it would affect the rest of the service levels. Now we know that it will be an additional, cheaper plan, and not a modification of one of the existing plans.
But crucial details remain frustratingly missing. How much will the new level cost with advertising? How many ads will it take for people to sit? Will the ads only run between episodes, or will they break up longer shows and movies? And when will this new level be released?